Business Management World Economic Forum

Question: Discuss about theBusiness Managementfor World Economic Forum. Answer: Introduction According to the Global Competitiveness Report of the World Economic Forum, in recent years, the region of the sub-Saharan Africa has given something about the silver lining in a if not broadly felt worldwide economic downturn. It has been found that this particular report assesses around 144 economies ("Imf.org", 2016). Moreover, on the other hand, the Sub-Saharan economies sustained to record more interesting rates of growth, close to 5 % in the year 2013, along with increasing protuberances for the subsequent two years below only budding and rising Asia ("Imf.org", 2016). On the contrary, significant risks are found in more than half of 20 least-ranked nations i.e. the sub-Saharan countries and the markets having inadequate infrastructure and deprived levels of basic education and health ("Imf.org", 2016). The main challenge of this particular region is to turn the high rate of growth into an inclusive rate of growth and to make the conversion from the agriculture based economies to the higher value added activities. As per the Global Competitiveness Report of the World Economic Forum, the markets are ranked on the basis of 12 major measures, which impact competitiveness involving innovation, education and infrastructure ("Weforum.org", 2016). The African Renaissance is the concept regarding the people of Africa and nations that might overcome the present challenges confronting the whole continent and to obtain scientific, economic and cultural renewal (African Economic Renaissance: The Role of Social Institutions - CASADE. 2014). The African Renaissance Institute was established in the year 1999 and its objectives are to develop the human resources of Africa, technology and science, nutrition and health, agriculture, business, culture, good governance and peace ("African Economic Renaissance: The Role of Social Institutions - CASADE", 2014). The most important and main role of this institute now and in future years is to focus on the results of the economic dimensions. It can also be said that the African economic Renaissance is a mixture of political and philosophical movement. Its aims are to bring an end to the elitism, violence, poverty and corruption that have mostly affected the whole continent of Africa and also to replace them by an equitable order. It has been found that in the year 2015, the economic activity of the Sub-Saharan Africa slumped to its lowermost level in 15 years ("The Keys to an African Economic Renaissance", 2012). The result expanded by about 3.4 % which is little above the growth of population and it is down by 5 % from the year 2014 ("Weforum.org", 2016). The key reason for this sharp slowdown is the decrease in the prices of commodity that has put several countries under harsh sprain along with a prominent affect on the area wide aggregate. Moreover, the experts expect that the growth rate will further get lower in future by 3 % and the reason behind this is that most of the nations struggle with much complicated external environment ("Weforum.org", 2016). In addition to this, it has been found that most of the countries of Sub-Saharan Africa suffer from drought, especially in the southern and eastern part of the continent and this has been identified as the source and the cause of the economic difficulties (African Economic Renaissance: The Role of Social Institutions - CASADE. 2014). As rightly put forward by Van de Walle (2012), contribution from human perspective involves in analyzing of security risk in and within the context of FDI (Foreign Direct Investment) in Africa. This reveals Exposure towards increased level of security risk resulting from conditions on continent as well as nature. On the contrary, it reveals importance of corporation ability in managing risk in an effective way (The Keys to an African Economic Renaissance. 2012). Security attributes illustrate upon understanding the significance of human perspective and allowing risk analysis for addressing the underlying causes of security threats for Business Corporation. These activities take initiative for risk management process whereby risk analysis renders informed basis. It is for long-term risk for viewing at the management strategies formulation (Weforum.org. 2016). As far as Economic Co-operation is, concerned, central element of FOCAC of China was renewed interest for expanding FDI in Africa. In other words, China Portfolio of investments involves natural resources extraction, manufacturing as well as construction and industrial processing (Sneyd et al., 2013). This will help Chinese Government in offering tax incentives, credits as well as loans for accessing foreign exchanges especially from enterprise undertaking FDI Projects. On the contrary, China is set for becoming Africa leading foreign investor. In the year 2007, Chinese investors spend more than US $29.2 billion for acquisition of foreign companies. This will rest investors for purchasing US $21.5 billion especially in Chinese companies (Sachs, 2014). African countries mostly respond towards China new investment capacity with adequate incentives for attracting potential capital. This means China has strengthened this trend in aligning with new investments in Africa (Kyambalesa Houngnikpo, 2016). For Instance, in the year 2007, China Largest bank owns Industrial and Commercial Bank of China for purchasing 20% stake amounting to US $5.5 billion. On the other hand, these aspects were considered as largest single FDI transactions in and around South Africa history as well as setting stage for increased Chinese FDI flows especially to African continent (Jones, 2015). With increased technology transfers, it deals with skills transfers as well as job creation in accompanying with Foreign Direct Investment. On the contrary, Africa gains opportunity in working towards Chinese capital flows. It requires understanding the key attributes for FDI for gaining Chinese experience relies upon special economic zones on specified tax breaks as well as investment incentives as available by foreign companies (Imf.org. 2016). FDI to Africa was viewed doubling between 2004 as well as 2007 amounting to US $40 billion based upon driving ways for exploitation of new resources. In other words, long-term prospects for FDI to Africa aim at remaining positive for continued demand of commodities (Confraria Godinho, 2015). It reveals expanding South-South investment flows in and within China playing important role for promising in African development. Global Financial Crisis enables bringing recent improvements especially for economic growth with greater stability on African continent for developing risk profile. Therefore, it helps in ensuring longer-term growth whereby Africa requires greater economic diversity as well as increased manufacturing for raw beneficiation (Boyle et al., 2014). Business to business contacts with facilitating by FOCAC in rendering excellent opportunity for Africa in boosting Chinese inward Foreign Direct Investment (Arndt et al., 2016). This process enables new commercial synergies for identifying business process as developed as mutual benefits. Therefore, critical success factor considers for African countries for developing attractive investment environment like China. For longer term, there are various specific as well as practical results governing the FOCAC process revealing in the areas such as trade as well as aid projects in the most appropriate way (African Economic Renaissance: The Role of Social Institutions - CASADE. 2014). Trade considers under the advanced new Chinese trade zones for established in and around Africa. In this particular scenario, China-Africa establishes ways for facilitating African trade with China as published by African products catalogues for supporting African companies (African Economic Renaissance: The Role of Social Institutions - CASADE. 2014). Joint Chamber of Commerce setting up developing co-operation between business leaders for countries named as China and Africa. In the year 2005, China undertakes more than 700 aided projects in and around Africa. In case of debt cancellation, China cancelled debt amounting to US $1.4 billion as indebted by poor countries in Africa. This means undertaking the further debt cancellation especially for African countries. In case of Loans, China promised providing US $3 billion for preferential loans amounting to $2 billion in exporting credits. It mainly establishes for advancement of trade as well as investment interaction for encouraging new Chinese investment in Africa. China concludes in undertaking more than 65 cultural agreements for training school heads as well as teachers in China for continuing government official training programs. It uses interest allowance for repayment activities in case of infrastructure loans (African Economic Renaissance: The Role of Social Institutions - CASADE. 2014). Discussion on reports regarding Chinese Investment in Africa will render information on People Republic of China (African Economic Renaissance: The Role of Social Institutions - CASADE. 2014). Investments manifests on people report for relationships from African perspectives. There are various factors for understanding China relationship with Africa on distinctive terms. This enables migration policies on investment as well as infrastructure loans for discussing purpose. In other words, these models of investment help in bringing investment in viewing at the economic growth objectives for bringing together foreign policies in an effective way. This study faces limitations that are conceptual in nature. It is supported with the help of quantitative as well as statistical analysis. Africa assessed depending under macro level especially based on countrywide. Each of the African country are difficult in processing towards evaluating at the time of recession (African Economic Renaissance: The Role of Social Institutions - CASADE. 2014). Financial as well as technical assistance for competitive analysis in resource allocation and construction projects Reference List African Economic Renaissance: The Role of Social Institutions - CASADE. (2014).CASADE. Retrieved 17 October 2016, from https://www.casade.org/african-economic-renaissance-role-social-institutions-2/ Arndt, C., McKay, A., Tarp, F. (2016). Two Cheers for the African Growth Renaissance (but not Three).Growth and Poverty in Sub-Saharan Africa, 11. Boyle, P., Halfacree, K. H., Robinson, V. (2014).Exploring contemporary migration. Routledge. Confraria, H., Godinho, M. M. (2015). The impact of African science: a bibliometric analysis.Scientometrics,102(2), 1241-1268. Imf.org. (2016).Imf.org. Retrieved 17 October 2016, from https://www.imf.org/external/pubs/ft/reo/2016/afr/eng/pdf/sreo0416.pdf Jones, C. I. (2015).The facts of economic growth(No. w21142). National Bureau of Economic Research. Kyambalesa, H., Houngnikpo, M. C. (2016).Economic integration and development in Africa. Routledge. Sachs, J. D. (2014).The end of poverty: economic possibilities for our time. Penguin. Sneyd, L. Q., Legwegoh, A., Fraser, E. D. (2013). Food riots: Media perspectives on the causes of food protest in Africa.Food security,5(4), 485-497. The Keys to an African Economic Renaissance. (2012).The Heritage Foundation. Retrieved 17 October 2016, from https://www.heritage.org/research/reports/2012/05/the-keys-to-an-african-economic-renaissance Van de Walle, N. (2012).African economies and the politics of permanent crisis, 1979-1999. Cambridge University Press. Weforum.org. (2016).Weforum.org. Retrieved 17 October 2016, from https://www.weforum.org/agenda/2014/09/top-10-competitive-economies-sub-saharan-africa/

What isnt for Sale

Business Strategy Essays

Business Strategy Essays Business Strategy Essay Business Strategy Essay Liberalization and the context of business strategy 2. 1 What is liberalization? Liberalization refers to the relaxing of rules and regulations or policies of a government in a country. According to the scenario, in 1991, the Indian economy has been opened as a result of liberalization. 2. 1. 1 How did it affect the Indian automobile industry? The Indian government continued to have a closed economy until 1991. By then Maruti Suzuki was the market leader of the automobile industry acquiring a market share of nearly 83. %. But however the government decision of opening the economy in 1991 had significant affects on Indian automobile companies such as Maruti Suzuki. The main affect was the entrance of foreign competitors that made the industry very competitive and the situation made it difficult for domestic companies such as Maruti to retain its market share, which is clearly reflected by the drop of market share from 83. 1% to 60. 8%. This will lead to decline in the growth of India’s automobile industry. However there will be certain advantages on the Indian automobile industry such as the entering of resources from foreign countries which are cheaper than the resources in India. More access to technology will be another advantage to the Indian automobile companies from liberalization. 2. 2 Defining the context of business strategy The prime aim of a business strategy is to provide superior value, differentiation, and core competencies for an organization. (http://jobfunctions. bnet. com/abstract. aspx? docid=90501). Business strategy is a long term plan which adds value, differentiates and identifies key capabilities and capacities of an organization to make the best use of them. 2. 3 Importance of Business Strategy The strategy shows a direction to the organization to reach company’s vision. Gives an understanding about rapidly changing environment. Helps in overcoming problems. 3. 0 Significance of stakeholder analysis Any organization operating in the real world influences the environment or the people related and unrelated to it. Also certain individuals or groups of people also might have impacts on the organization. The individuals or groups of people who are interested or are influenced by an organization’s activities is called as stake holders. The stakeholders can be categorized as internal and external. According to the case study, Maruti Suzuki has started losing its market share after the liberalization. Therefore it is necessary for Maruti to carryout an analysis on different interests and impacts on interests of its stakeholders. An analysis of stakeholders, their stakes and impacts of liberalization on each of these stake holders are shown below: 3. The stakeholder analysis of Maruti Suzuki Government Interest: tax, sovereignty and prosperity The government decision to liberalizatio0n led competitors to enter the market and this will lead to a loss in sovereignty and prosperity of country. The government intention to collect tax would be affected as Maruti’s profits might now come down due to increase in competition. Competitors Interest: effective competition, gaining d ominant power The competitor organizations which were seeking for competing opportunities were effected favorably from the government action of liberalization. They made it an opportunity to enter the Indian automobile industry and compete effectively. This strategy of competitors was successful as they were able to capture Maruti’s market share by attracting most of its customers. Customers Interest: quality, variation, low prices, customer care The buyers, as they always look into new variations that are low priced and last for a long time have well preferred the foreign cars leading to a great fall in Maruti’s market share. (i. e. by 83. 1% to 60. 8%). Employees Interest: salary and other benefits The setting up of competing foreign automobile companies would have given job opportunities at better packages which might have led some employees to leave Maruti Suzuki and join its competitors. Japan based Suzuki Interest: company image, profits, growth This is the mother company of Maruti Suzuki. After the loss of Maruti’s market share and decline in profits, Suzuki’s image will be affected and in turn the profits will go down. Suppliers Interest: long lasting relationship, profits The suppliers of Maruti Suzuki will gain the advantage of higher customer base. They will also be able to sell the resources at a much higher price to foreign competitors than Maruti Suzuki. Therefore this will lead to a loss of some suppliers or Maruti’s competitors producing the same standard products. 2. 3 Internal environment 2. 3. 1 Corporate analysis Strengths Being the dominant market leader in Indian automobile industry acquiring a market share of 55%. Strong brand name of Maruti Suzuki. Increase in net sales to Rs. 90. 81bn. Increase in net profit from Rs. 3. 46bn to Rs. 5. 42bn. The capabilities of employees in Maruti Suzuki and their knowledge and ideas about new technology. The availability of new technology to manufacture and design cars. Established distribution and after-sales networks, and supplier base. Understanding of the Indian market and the agreement with the government. Contemporary technology of Japanese Management practices Early mover advantages Maruti Suzuki was the first company to have brought in the technology in Ind ia in 1983. Good promotional strategy is adopted by MUL to transform its thoughts to the people about its products E. g: Alto: â€Å"Lets Go† The fuel efficient and affordable car. The ability of Maruti Suzuki which helped in identifying its downfall and the application of restructuring strategy to overcome this situation. Weaknesses Difficulty in competing with other global car manufacturing companies due to the availability of insufficient resources and technology. Maruti Suzuki is a subsidiary of Japan based Suzuki Motor Corporation which means it is dependant and has less freedom of working as an individual body. For Maruti to perform better, it needs to convert the weaknesses within the organization to strengths. The weakness of insufficient resources and lack of advanced technology could be overcome by investing more on advanced technology. Further the existing workforce in Maruti can be outsourced in order to sharpen their tacit knowledge as they may now come up with new ideas. This factor might create core competencies in Maruti. However investing in new technology can only be done in the long run. Maruti Suzuki is a subsidiary of Japan based Suzuki Motor Corporation. Therefore it has certain disadvantages such as less freedom of decision making and etc†¦. ut however this might also have certain advantages such as being a part of a leading company Maruti Suzuki can maintain its market share, gain publicity, can get aware of and grow into new markets and etc†¦. the weakness of insufficient materials and less access to new technology could also be overcome by having a good relationship with Japan Suzuki Motor Corporation. Opportunities The increasing demand for cars in the global markets. Improvement in infrastructure will encourage consumers to purchase automobile. Indians’ preference to Indian products Reduced interest rates on automotive loans. Increase in purchasing power of Indian economy. The joint venture agreement between the Indian government and Maruti. Growing population in India provides Maruti with cheaper labour which help them to achieve the objective of producing low cost cars. Threats The improvement in concerns on environment protection will however create negative impacts on companies like Maruti Suzuki. The opening of economy to other countries caused foreign competition to enter Indian economy. Conversion of threats to opportunities would direct Maruti towards its success. The concern on environmental protection is a factor, which has a rapid increase globally. Car manufacturing companies are said to be creating major impacts on environment especially because of global warming which takes place due to air pollution and extraction of resources from the environment. To avoid this, Maruti Suzuki can carry out with effective CSR projects. This might increase its goodwill further. The opening of economy has helped new foreign competitors to enter the market. But however Maruti can make this an advantage as it is now easy for Maruti to aware about the strategies foreign companies are using. Also with the opening of economy, better imported resources might come to the Indian market with high quality and at a lower price. 2. 4 External environment 2. 4. 1 PESTEL analysis Political factors and legal factors Government policies on car industry. The introduction of ‘New industrial policy’ impacted Maruti Suzuki by increased foreign competition but however, it brought in new technology which was beneficial to Maruti Suzuki. Taxes which might be already existing and may be implemented in the future. The joint venture agreement between the government and Maruti has effected the company favorably in 1981. The improving economic stability in India would help Maruti Suzuki in improving its performance. Economical factors Liberalization The opening of economy to other countries caused foreign competition to enter Indian economy, which dropped down Maruti’s market share by 22. 3% (i. e. from 83. 1% to 60. 8%). The Economy of India is the eleventh largest in the world by nominal GDP and the fourth largest by purchasing power parity. The countrys per capita GDP is $3,176 (IMF, 127th) in 2009. (source: http://en. wikipedia. org/wiki/Economy_of_India). Further the GDP of India proves to be increasing from 1960 to 2009 which in turn means that Maruti Suzuki will have an increasing demand for cars, as cars are prestigious or luxury products. The State Bank of India reduced interest rates on automotive loans in February 2009 (source: http://en. wikipedia. org/wiki/Automotive_industry). This means that Maruti Suzuki will gain an advantage of borrowing further loans at a low cost of borrowing in turn leading to expansion of the organization. Socio cultural factors Indians’ preference to Indian products The Indians usually prefer truly Indian products rather than imports, therefore Maruti Suzuki being an Indian car manufacturing company will be preferred by most of the Indians. Taste and fashion The preference of markets for latest designs and long lasting variation and colors will increase demand for cars produced by Maruti Suzuki. The busy living styles of people in each part of the world would persuade them to have their own vehicle which is fuel efficient and easy to handle. This would be another great opportunity to Maruti Suzuki as it is specialized in producing fuel efficient and cost effective cars. Technological factors Use of upgraded technology to manufacture cars E. g. CIM (Computer Integrated Manufacturing) To compete effectively Maruti redesigned its structure and the major changes took place was the upgrading of manufacturing using new manufacturing techniques and use of information technology which brought back the declined market share to 55%. Improved technology in designing E. g. CAD (Computer Aided Design) and CAE ( Computer Aided Engineering) The technological advances in designing cars has helped Maruti Suzuki to come up with new designs to meet up with customer requirements. Environmental factors Improvement in infrastructure will persuade markets to purchase automobile. The improvement in concerns on environment protection will however create negative impacts on companies like Maruti Suzuki. 2. 4. 2 Porter’s five force analysis [pic] Threat of substitutes The major threats of substitutes to an automobile company like Maruti Suzuki can be identified as other types of vehicles such as vans, jeeps and bikes. E. g. : Motorcycles as a segment have grown at a CAGR of 17. % during the last 16 years, while other two-wheelers (scooters, mopeds) have been virtually stagnant, growing at a meager CAGR of 1. 8%. (source: indiaautomotive. net). Considering the above example it is much clear that there is a growing demand for substitutes of cars which will affect Maruti Suzuki. Threat of new entrants Threat of entry refers to the entry and exit barriers of an industry. Maruti Suzuki is an already established company which has been operating since 1971 and it is the market leader in the Indian automobile industry. This would be a threat for the new entrants. However to a great extent, Maruti will not be affected due to an entry of a new organization as entering to automobile industry requires high initial capital and include greater sunk costs. These factors might avoid new entrants but Maruti need to continue with its market research and use new strategies to retain its market share, in case if a new entrant comes to the market. Bargaining power of customers Customers can not directly control the price of a product. But however, according to changes in prices they can vary their demand. Cars are usually considered as luxury products in the economics context, therefore they have inelastic demand. So an increase in price would not lead to a huge fall in demand, but however it is necessary that Maruti Suzuki controls its prices as competitors might make advantage of unstable prices. The responsibility of making low cost fuel efficient cars may be an advantage at this point. Bargaining power of suppliers Bargaining power of suppliers can be considered as a very powerful factor in this scenario. Maruti imports most of its components from other countries and the prices of these components are set up to global standards which might be quite expensive for Maruti. Further Maruti would be a small customer to its suppliers in comparison with other large automobile companies. Therefore, here, the suppliers are seem to be having greater control or bargaining power over prices and other conditions compared to Maruti Suzuki. Competitive rivalry within the industry This is the extent of competition between car manufacturing companies. The competition seems to be very high in the industry as Maruti Suzuki has loss a significant amount of its market share due to rivalry. [pic][pic] [pic] According to the above diagram, it is very much clear that Maruti Suzuki acquires the 11th place in the global automobile market. 10 large competitors have greater shares of market are operating effectively in the global market. Therefore, the rivalry in the market can be said as very high and it would be difficult to Maruti to compete with them. However, the rivalry within the Indian automobile industry can be considered as favorable to Maruti Suzuki as it is the market leader having more than 50% of market share. [pic] 5. 0 Growth strategies 5. 1 BCG matrix [pic] BCG matrix of’’ Maruti Suzuki’ According to the above BCG matrix, it could be seen that Maruti Suzuki operates in all the 4 grids which are namely stars, question mark, cash cow and dog. The new models of cars introduced by Maruti Suzuki ( Grand Vitara and etc†¦. ) are said to be positioned as stars since they have an increasing rate of growth and high market share due to increasing customer demand for new models of cars. Selling stocks or the cash cow grid indicates products with low growth and high market share. These would be cars, which are already being existing in the market for a long time and have reached their maturity to have high market share and low growth rate. E. g. Maruti Alto, Swift and etc†¦. ) The question mark, which shows the products with high growth rate and low market share, would be the extra stocks of cars. These products would not help in increasing market share but would increase the growth rate through increase in sales if the stocks were sold at a reduced price. The dog would classify cars, which are outdated or old models, which have a declining trend. For example, Maruti WagonR, an old model that was existing in the market for a long time is now slowly reaching its exit. These products have low market growth and low market share due to less profits and declining sales. . 0 Positioning techniques 6. 1 The position of Maruti Suzuki in the market Maruti Suzuki has its major resources such as cheap components, fuel efficient cars, strong relationship with customers and employees, use of developed technology and etc†¦. It further leads the Indian automobile market with a market share of 55%. Maruti Suzuki operates both in domestic and global market . Globally it acquires a market share of 0. 7% being a part of the 11th largest automobile company, Suzuki. Operating systems in the organization for the purchasing and selling process is highly monitored by its management. This will allow making more profits by reducing wastage and unnecessary costs. This is an added advantage to Maruti Suzuki when comparing with the other competitors in the market. Considering all the factors which were mentioned above it could be seen that Maruti Suzuki has built up its position in the market at a stable level and need to improve further with new strategies. 6. 2 strategic positioning 6. 3Ansoff’s Matrix [pic] Ansoff’s matrix on Maruti Suzuki The activities involved in market penetration are to improve the business performance with existing products while operating in the existing markets. The necessary steps Maruti can use to achieve this is to use effective advertising, promotional techniques, increase quality, minimizing costs and increasing output and sales volume. Maruti Suzuki already operates in a number of countries with its successful product ranges. However the organization could further expand by identifying the opportunities to enter both foreign and local markets with its existing products- Maruti Baleno, Maruti Esteem, Maruti Swift, Maruti Zen, Zen Estilo and etc†¦ Use of effective research and development would help Maruti Suzuki in achieving this growth strategy. The third criterion to be used is product development, which necessitate Maruti Suzuki to come up with new ranges of small cars with new designs and brands. Finally, the fourth grid, which is diversification, allows Maruti Suzuki to come up with new brands while targeting new markets such as substitute markets and, foreign and local markets. Maruti Suzuki has already used this strategy as it has come up with new substitutes- vans and jeeps. These can be considered as the positioning strategies of Maruti. 3. 0 significance of stakeholder analysis Any organization operating in the real world influences the environment or the people related unrelated to it. Also certain individuals or groups of people also might have impacts on the organization. The individuals or groups of people who are interested or are influenced by an organization’s activities is called as stake holders. The stakeholders can be categorized as internal and external. An analysis of stakeholders, their stakes and impacts on Maruti Suzuki are shown in the table below. 3. 1 the stakeholder analysis of Maruti Suzuki |Internal stakeholders |External stakeholders |Stake/ interest |The effect on Maruti | | |Government |Sovereignty and prosperity of |The government decision to pass | | | |country. down the responsibility of building| | | | |low cost, fuel efficient cars for | | | | |the Indian market was favorable to | | | | |Maruti. | | | |The government intention to collect| | | |Tax advantages. |tax from Maruti will increase the | | | | |cost of Maruti. | | | |Government decision of | | | | |liberalization too created negative| | | | |impact by making the market more | | | |Being more competitive among |competitive. | | |foreign countries. | | | |Competitors |Capturing the Indian automobile |The entrance of foreign automobile | | | |industry. companies from 1991 created an | | | |Compete effectively with Maruti |adverse effect on Maruti by | | | |(the market leader) |creating a downfall in Maruti’s | | | | |market share. | |Buyers |Modern designs. |The buyers, as they always look | | | |Low prices. |into new variations that are low | | | |Long lasting cars. priced and last for a long time | | | | |have well preferred the foreign | | | | |cars leading to a great fall in | | | | |Maruti’s market share. (i. e. by | | | | |83. % to 60. 8%). | |Employees | |Job security. |Well-trained employees who could | | | |Considerable pay and other |easily adapt to new technology | | | |benefits. |would have directed Maruti towards | | | | |the recovery of market share. The | | | | |effect of their interests would be | | | | |increasing costs to Maruti. | 4. 0 Environmental audit These can be considered as factors leading to environmental stability. They are as follows: Technical change The improvement in technology and discovery of new technology based principals (CIM, CAD, CAE) have helped Maruti in improving its product quality and design. Competitive products and prices The competitive automobile companies such as Toyota, Honda, General Motors, Ford, Mitsubishi, Nissan and etc would affect Maruti by introducing price and non price competition. Price competition techniques could be analyzed as new products with various designs, improved after sale services and price competition can take place through cutting down prices, tax allowances and etc†¦Ã¢â‚¬ ¦ Therefore Maruti can keep low margins and less their cars at a very low price while designing cars which attracts customers. Inflation [pic] Source: ( property-investing. org/images/India) The inflation rate of India is expected to fall in the next few years. Therefore, this would show a positive signal to Maruti Suzuki as certain resources, which would be bought from the Indian market, would be available at a low price than before and the organization would now be able to cut down some of its costs. Therefore, the final product produced would be cheaper allowing Maruti to compete effectively. Also the purchasing power of Indian citizens would then increase leading to higher demand for cars. Demand variability There will not be much change in demand, as cars are not seasonal products. However, due to other factors such as increase in inflation rates, increase in GDP, changes in living styles and changes in taste and preference, there will be a slight change in demand for cars. However, Maruti Suzuki can overcome these problems with the continuous production of low priced cars with various designs. Elasticity of demand El asticity of demand for cars is said to be price inelastic as they are luxury products. Therefore, an increase in price would not create a major impact on demand for Maruti. However, the unsold cars could be sold at reduced prices in markets where economy is under development. E. g. , the car prices dropped down in Sri Lanka during the financial year 2010 Barriers to entry Economic forces that slow down or prevent entry into an industry or market are known as barriers to entry. Capital requirements, product differentiation, switching cost, brand identity, access to distribution channels are some of the common barriers, which slow down organizations from entering into new markets. Capital requirements, switching costs and access to distribution channels are some of the main barriers for Maruti Suzuki. However the company is already established in the Indian market therefore technology, plants and assembly lines which are already owned by the company can be used to grow into new markets. Access to distribution channel would be easy, since Maruti Suzuki is a subsidiary of Japan based Suzuki Motor Corporation. Substitute products The substitute products of Suzuki can be classified as other types of vehicles. This factor has been overcome by Suzuki through the production of a van which has already being introduced to the markets. 7. 0 Process of strategic planning The strategic planning process of a company includes its mission, objectives, internal environment, external environment, corporate analysis or strategic formulation, strategic implementation and analysis of results while reviewing and controlling. [pic] (Source: google. lk/images20planningtbs) 7. 1 Vision â€Å"The leader in the Indian auto mobile industry, creating customer delight and shareholder’s wealth, a price of India† . 2 Mission and objectives The modernization of the Indian automobile industry. Developing cars faster and selling them for less. Production of fuel-efficient vehicles Market penetration, market development, product development and diversification. Partner relationship management, value chain, value delivery net work. 7. 3 Internal environment i. What are Maruti’s resources? Mate rials Use of imported resources to manufacture cars. Reduce wastage due to application of techniques such as TQM and use of advance technology. Human resource Skilled and experienced employees in the industry. Special training is provided to improve the capacities and abilities of human resource. Management An effective and well specialized management. Easily adaptable to market changes. Risk takers. Brief knowledge about customer preference and their buying patterns. Fixed assets Maruti Suzuki own many fixed assets such as plants, machinery, buildings, factories equipment and technical assets. Working capital According to the statistics,75% of company’s components are outsourced. Manufacturing is undertaken on JIT inventory principals. Finance Obtaining loans from banks at a low interest rate as the interest rates on automotive loans has fallen. Increasing profits and sales revenue. Intangible assets Maruti Suzuki’s highly performing staff and the strong b ond with customers are form of intangible assets. Company goodwill. Organization and culture Employees from different cultures, religions and races with different attitudes are employed in Maruti. Maruti Suzuki takes over many CSR projects to meet up with the ethical requirements. The organization has a 360degree view which means it considers customer views, employees and other involved parties when making decisions. Knowledge The knowledge of the employees are improved through outsourcing them and giving them special training. This benefits the organization by gathering a pool of new ideas and creating core competencies. ii. Current positioning in the market ( please refer to page 7. 4 External environment (please refer the PEST analysis and porter’s 5 forces on page 7. 5 Strategic formulations ( please refer the SWOT analysis on page 7. 6 Strategic implementation Strategic implementation is a process by which strategies and policies are put into action through the development of programs, budgets and procedures. The main corporate resources of Maruti Suzuki can be classified as materials, human Resources, management, fixed assets, technology, working capital, finance, intangible assets, organization and knowledge. Maruti Suzuki is involved in both manufacturing and selling its cars. Components, human resources, fixed assets, working capital (inventory) and technology are certain factors, which need to be allocated effectively in the production process. Components should be purchased after the selection of low priced, quality component suppliers in order to keep up with Maruti’s objective of low cost cars. The other factors such as management, intangible assets, and knowledge could be used in areas where planning is involved. Management needs to prepare strategic plans such as restructuring whenever needed. Intangible assets such as customer loyalty and company goodwill are factors, which will be considered by the customer when purchasing the product. The knowledge of employees about the company and other operation should be broad, especially when it comes to customer handling. Therefore proper training should be given to employees. 7. 7 Strategic choice 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. (Source: Johnson, Scholes and Whittington, 2008). Maruti Suzuki outsource more than 75% of its components. This will involve reducing the scope, defining quality levels, re-pricing, re-negotiation, and cost of re-structuring. The designs of the products should be improved and augmented regularly to make advantage of effective competition. The application of this strategy could be supported with effective marketing research. 7. 8 Review and control Review and control is important to strengthen the strategies that are being implemented. Assessing actual performance to budgeted performance can be described as review and control. The expected work level of strategic level can be considered as much higher than tactical level normal employees. This is due to management’s engagement in planning, coordination and risk taking. Maruti Suzuki will have to bear a large cost on giving training to employees which might drop down its profits by a certain amount. But the improvement in employee performance after the training would bring back the investment cost. The positive effects on restructuring were shown by increased sales and profits. However if the restructuring was not successful Maruti needs to have a backup plan for its safety. This would be the carrying out of effective advertising campaigns and promotional activities or investing more on advanced technology. 8. 0 evaluation of alternative strategies . 1 substantive growth 8. 2 limited growth 8. 3 retrenchment 9. 0 selecting an appropriate future strategy Cars with new models E. g. new version of Grand Vitara Outdated stocks E. g. Maruti 800 Selling stocks E. g. Maruti Alto, Maruti splash, Maruti Swift Excess Stocks of cars Developing new brands of cars Moving into new foreign markets with existing cars Vans and jeeps E. g. Maruti Omni micro van, new range of Grand Vitara, Maruti Versa, Maruti Gypsy. Cars E. g. Maruti Baleno, Maruti Esteem, Maruti Swift, Maruti Zen, Zen Estilo.

Costume and Fashion Essay Example | Topics and Well Written Essays - 2500 words

Costume and Fashion - Essay Example The essay "Costume and Fashion" talks about the connection between costume and fashion and analyzes what impact has a costume from the past to the modern fashion. In today’s fashion industry, there is no faux – pas what – so – ever, any and everyone can be fashionable if they chose to. This is very unlike fashion in the historical times where fashion was only for the rich and famous. If you wanted to be fashionable, you had to be rich! Contemporary fashion has it, that a person could be fashionable even on a shoe- string budget. Today, Fashion in the broader sense of the word is a person’s identity – a ticket to be known. It is a sort of stamp on society so to say where everyone tries to make a mark. In trying to differentiate between â€Å"costume† and â€Å"fashion†, we come to understand that there is a great disparity between the two. Research carried out in the field of fashion shows that fashion takes place all over the wo rld and is closely related to sociology, the Urban Geography, the Class and Labor system and the Material culture of a place. All these components combine to portray the fashion of a particular country. That is why each country has its own unique and traditional flavor when it comes to fashion. â€Å"Costume† on the other hand, is clothing that is made for a particular purpose and is worn by a whole group of people who are together and doing the same job. For example in the ancient world, people like the German tribes used costumes, in order to differentiate between the different social classes.

Naturalistic Philosophy Essay Example | Topics and Well Written Essays - 2000 words

Naturalistic Philosophy - Essay Example Plot characters development showed the degree of control that man had over their destiny. American realizes that the power of outside forces is what limited humanity’s freedom of choice, to them individuals had no choice since their lives dedicated to only hereditary and external environment. To naturalists, humanity was helpless and wholly dependent on nature’s favors. American naturalism got to its peak at around the beginning of the nineteenth century. Charles Darwin’s theory of phylogeny also played a great role. Malcolm Cowley states that years between the first and second world wars were a flourishing time for the American writers. American literature had attained a new maturity and an abundant diversity. Marked by the publication of several works? It was at this time that memorable works published though they were not up to standard an excellent number became influential and were later in time criticized. Most novels that were written around this time majorly based on the war that had just ended. It was only by means of civil war that the young country could achieve both unification and peace. Stephen Cranes, The Red Badge of Courage, illustrates an actual description of fighting in the civil war that ended up leading their country to victory. Novels about the war have been the most reliable ways of writing about the war life. Some permeated with a lot of protests, therefore, they were named war books in general. In the history of America, war writings are considered to have taken a greater part of the portion when all books put together. It was around this time that Stephen Crane’s The Red Budge was written and published for the first time. Its location is the battlefield, Crane attempted to explain and draw the picture of what was happening during the war and in the lives of the soldiers.  

Freedom of contract essay, types of contracts

Freedom of contract essay, types of contracts THE PRINCIPLE OF FREEDOM OF CONTRACT INDEX Summary †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 1 Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3 Giving efficacy to a contract †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 The importance of good faith †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 5 Unconscionable bargains †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 6 Unreasonable conditions in the contract of insurance †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 7 ‘Subject to contract’ term †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 8 Exemption clause †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 9 Contract of sale of goods †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 9 Consumer protection †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 10 Standard form contracts †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 11 Exclusion clause †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 11 Penalty clause †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 13 Contract of agency †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 16 Tenancy law †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 17 Carriage of goods †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 18 Freedom of contract for players †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 19 Conclusion †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 19 References †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 20 List of case laws †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 20 Summary The premise for the principle of freedom of contract is that the parties could make agreements on a wide variety of subjects and choose those terms that they agree as convenient for the fulfilment of the contract. Court normally refrain from questioning the substance of bargains and would ensure only that the parties have observed appropriate formalities. The principle of freedom of contract is similar to the civil law rule of pacta sund servanda that has regulated the domestic, international and transnational commercial agreements. While interpreting the contract, the courts have to be objective because in the process of interpretation the courts should not create new contracts. Courts would seek to ascertain either what the parties intended or if this is not forthcoming from the terms of the contract then apply the test of how the words would be understood by a reasonable person. Thus contract law is a series of abstractions formed by individual autonomy and judicial deference. But the principle is not unfettered. The legislations limit the scope of contract for protecting social welfare and consumer protection statutes. This gave the courts scope to develop exceptions which is discussed in detail in this paper. Courts began to police the fairness of agreements, developing new doctrines like unconscionability that allowed them to intervene to protect parties with unequal bargaining power. The fact that the principle of freedom of contract continues to share the stage with competing principles should not be surprising. Law always reflects a community’s values and the continuing conflict in our societies between individual freedom and public control[1]. The conflict is unavoidable in a liberal democracy and the best approach is to make reasonable compromise after a case by case analysis. The nature of such compromises will keep changing as the society’s interests evolve leading to the liberal or restricted application of the principle. In this paper the principle of freedom of contract is examined on basis of the hypothesis that the theory of freedom of contract leads the courts to passively enforce the intentions of the parties. In reality, however, the law of contract gives the courts scope to use discretion and do what is fair and reasonable between the parties. However the paper does not conclude that the principle has been watered down by interference from the court of law but has only assisted in exceptional circumstances when the bargaining power of the parties are not the same or when unreasonable and unconscionable contracts are formed. It would be anomalous to conclude that the principle of freedom of contract is far removed from practice. In fact where commercial agreements are entered into by equally competent parties the court do not read anything more to the contract than what was intended by the parties while entering into the contract. The paper examines the principle from general contract law perspective and also analyses special contracts such as the contract of sale, insurance, carriage of goods and agency. Introduction The general principle of the contract law gives prominence to the concept of intention of parties when entering into a contract. This assumption leads to the development of the thought that the parties are individuals with reasoning and are free to enter into any form of contract so long as there is consensus. The intention of the parties is significant in determining whether there is consensus ad idem among the parties entering into the contract. The emphasis on the intention of the parties is logical where a term is implied in fact. Under common law any person is entitled to exercise any lawful trade subject to restraint of trade for public policy reasons. This doctrine extends to contracts restricting the way in which a tradesman carries on business on a piece of land, and to restraints imposed by the rules or practices of professional or other bodies controlling particular activities. In Petrofina (Great Britain) Ltd v Martin[2], it was held that the agreement which restricts the supply of motor fuel only to one particular supplier was valid because it did not affect public policy and parties have voluntarily entered into the contract. The doctrine of restraint of trade whether partial or general restraint, will be good only if they are reasonable and is within the circumscribed limits of the interest of the public, the covenantee and the covenantor. Any restriction upon the freedom of contract to which the restraint of trade doctrine applies must be shown to be reasonably necessary for the purpose of the free dom of trade.[3] A restraint reasonably necessary for the protection of the covenantee must prevail, unless some specific ground of public policy can be clearly established against it. In Russell v Amalgamated Society of Carpenters and Joiners[4] where the area from which the employers, not parties to the agreement, could obtain workmen was held unreasonably restricted. The principle of freedom of contract and the enforcement of contractual promises against the promisor arises out of the economic necessity of compelling observance of bargains and the moral justification that promise was freely given. The evolution of this principle can be traced back to the Slade’s case[5] where the action of assumpsit (where the essence of the undertaking was considered while interpreting commercial contracts) was applied. The action of assumpsit was abolished in the 19th century and left behind the principle of the freedom of contract which evolved over the years with some carve outs and exceptions. The courts still consider the principle of the freedom of contract vital but certain assumptions need to be fulfilled such as equality of bargaining power and legality of the contract. Also to some extent, the law has interfered with[6] or excused a party from literal performance of his promise. This is especially true when we consider the doctrine of frustratio n[7]. Nevertheless it remains generally true that the law of contract does not lay down rights and duties, but rather imposes a number of restrictions subject to which the parties may create by their contract such rights and duties as they wish. Much of the litigation is for determining the construction of the contract to determine what the promisor promised. The earliest case law on the freedom and sanctity of contract was in 1795 in Cutter v Powell where a seaman who was to be paid his wages after the end of a voyage died just a few days away from port. His widow was not able to recover any of his wages because he had not completed performance of his contractual obligation.[8] The civil law principle of pacta sund servanda means the promises and prior commitments must be fulfilled and is similar to the principle of freedom of contract. Pacts and clauses are law between the parties and imply that the non fulfillment of respective obligations is a breach of the pact. The role of the courts is minimal to balance the principle of freedom of contract and protect the weak contracting parties. Giving efficacy to a contract While giving efficacy to contracts, the courts have construed the intention of parties but the courts do not cross the line and create new contracts thereby giving any one of the contracting party a new advantage. A term is implied where it is necessary in the business sense to give efficacy to the contract. The well known tests for construing the contract are: the intention of the parties; or the test of a reasonable person. The intention of parties test bolsters the principle of freedom of contract as the courts would be enforcing obligations on parties as envisaged at the time of entering into the contract. However the second test i.e.: the reasonable person test somehow stands antithetical to the principle of freedom of contract. The test may find use under certain peculiar circumstances, reflecting implications in law. An implied warranty or a covenant in law, as distinguished from an express contract or warranty is really founded on the presumed intention of the parties, and upon reason. The implication which the law draws from what must obviously have been the intention of the parties is drawn with the object of giving efficacy to the transaction. The importance of good faith During the 19th century the English courts had a much more relaxed attitude towards the good faith and other elements of the contract, holding the freedom of contract principle as the sine qua non for parties to deal with the promises made. The courts now strike down agreements on the grounds of illegality, incapacity, mistake, duress, misrepresentation, implied terms, frustration and unfairness. Using the principles of equity, the courts have diminished the severity of the common law principle. The courts look beyond the form of the contract and look at the intention of the parties to construe a contract. According to Professor Summers[9], the American Restatement[10] bestows a general and residual duty of good faith contractual performance which may be enforced in the absence of any more specifically exigible contractual provision or statutory superimposition. But this argument is not without criticism. Without the backing of the good faith principle the principle of freedom of con tract would seem unfettered where the parties are free to write their own contracts and that the law does not have a role to import any terms or conditions other than those expressly agreed or necessarily implied by the parties. Unconscionable bargains The courts have time and again interfered with the terms of the contract even in the absence of duress or undue influence if the terms of the contract are harsh or unconscionable. It not just sufficient to establish that one party has a better bargaining power. It has been held in Burmah Oil Co v Bank of England[11] that equity will not intervene merely because one party has superior bargaining power. There should be some form of economic duress or unilateral mistake as to the terms of the contract. Under English law, relief is given to one, who without independent advice, enters into a contract on terms that are very unfair or transfers property for a consideration which is grossly inadequate, when his bargaining power is grievously impaired by reason of his own needs or brought to bear on him by or for the benefit of the other.[12] There were views based on the thesis that in order to interfere with the principle of freedom of contract on the grounds of unconscionable bargain, ther e should be statutory basis such in the case of unfair consumer trade practices, extortionate credit bargains, swinging exclusion clauses and unfair terms. But subsequent case law decided by the Court of Appeal suggests that the exception to the principle of freedom of contract to protect weaker contracting party (inequality of bargaining power) has survived.[13] The remedies available in respect of unconscionable bargains are subject to the same rules as applicable under undue influence that was laid down in Allcard v Skinner[14]. A party will not be granted relief against an agreement on the basis of unconscionable bargain unless he can show impropriety by the other party in the manner in which the agreement was reached and the terms of the agreement.[15] In Boustany v Pigott[16], the Privy Council laid down the following principle. It is not sufficient to attract the jurisdiction of equity to prove that the bargain is hard, unreasonable or foolish. The party claiming unconscionable bargain has to prove that the contract is unconscionable in the sense that one of the parties has imposed an objectionable term in a morally reprehensible manner that is to say in a manner which affects his conscience. Therefore unconscionable does not just reflect the terms of the bargain but looks at the behavior of the stronger party which may be tainted by moral culpability or impropriety. Unequal bargaining power or objectively unreasonable terms does not provide a basis for equitable interference in the absence of unconscientious or extortionate abuse of power. As a matter of fairness the strong should not be allowed to push the weak to the wall. Thus a contract cannot be set aside as an unconscionable bargain against a party who is not guilty of act ual or constructive fraud. Even if the terms of the contract are unfair in the sense that the contract favors one party more than the other party, equity will not provide any relief unless the beneficiary is guilty of unconscionable conduct. The party seeking the relief must establish unconscionable conduct viz. that unconscientious advantage has been taken resulting in a disabling condition or circumstance. Unreasonable conditions in the contract of insurance A stipulation in a policy may be capricious or unreasonable leading to non enforceability of a fundamental term of the contract. This view does not reconcile with the principle of freedom of contract under English law. This exception is however relevant when the contract terms concluded between an insurer and a consumer is unfair. A condition in an insurance policy which is contrary to public policy is unenforceable, for example a condition by which the insurers impliedly undertake to pay the insured’s personal representatives if the insured under a life policy kills himself while not mentally disordered.[17] But a condition that prevents the policy holder from joining military services is not against public policy i.e.: it cannot be considered that exclusion of cover to a person joining military services cannot be deterrence from performing national duty.[18] Where the conditions are such that it is impossible to perform the conditions from the outset then such conditions are simply disregarded as they are a nullity. ‘Subject to contract’ term ‘Subject to contract’ is a phrase which points to a prima facie evidence for declaring that a concluded contract does not exist. The circumstance in which the parties may enter into such agreement arises when all the terms have not yet been negotiated and agreed. This allows a huge scope for thorough negotiation among contracting parties. However when analyzing some of the case laws one gets an impression that the courts have at times entered into the realm of contracts and added new dimensions to the agreements. In Boyle v Lee[19], Finlay CJ (Hederman J concurring) and O’Flaherty J held that there was no concluded contract because the parties did not agree everything they thought essential. In Embourg case[20] it was held by a unanimous judgment that a contract stated in the documentation such as the estate agent’s and the solicitor’s letters as subject to contracts until the contract is exchanged between the parties and meant that no binding contra ct came into existence because no exchange was made. This was the view the court took despite the fact that both the parties had signed the copies of the formal contract drawn up by the vendor’s solicitors. However a more liberal view was taken in Moran v Oakley Park Developments Ltd[21] where it was held that contract will be enforceable under the doctrine of part performance if the court is satisfied that a concluded oral agreement has been reached between the parties to the contract. Therefore the phrase ‘subject to contract’ purports to deny the existence of the concluded contract and protects the parties in negotiations. The Law Reform Commission also considered the possibility of enforcing such agreements.[22] After examining the implications on the freedom of contract principle the Commission felt that if an agreement were to be enforced as soon as the price were agreed, there would have to be some mechanism for settling other terms. The Commission noted that the Working Group on Land Law and Conveyancing Law had failed to come up with a statutory set of conditions and that a court or arbitrator would be able to settle terms in simple cases only. Generally such phrases like ‘subject to contract’ are seen in contracts of sale. Exemption clause The contract of sale allows for contracting out of the implied terms by express provisions and this is recognized as valid under the Sale of Goods Act 1979. Most of the implied terms deal with the quality of the goods. Under the Sale of Goods Act there are implied terms relating to the title to the goods for the vendor, terms regarding quality and fitness, sale by description implies that the goods match the description and in cases of sale by sample the goods are to match with the sample examined by the purchaser. Under the Supply of Goods and Services Act 1982 there is implied terms relating to care and skill, time of performance and consideration. The habit of ousting the implied terms by express contractual provision had become a widely practiced technique at all levels of commerce, and had received a steadily growing impetus from the ubiquitous appearance of standard contracts on the economic scene. In fact restrictions preventing the use of exemption clause for contracting out of implied terms in a contract of sale can be seen only in cases of consumer sales. However attempts to contract out of the implied term with respect to the title of the property were held to be void in all contracts of sale. Thus a term excluding or restricting the seller’s liability for breach of any of the implied terms would not be enforceable to the extent that it is shown that it would not be fair or reasonable in the circumstance of the case to allow reliance on such terms. Contract of sale of goods The sale of goods is an important branch of the contract law which deals with the sale and purchase of movable assets and relies heavily on the principle of freedom of contract. The seller and buyer normally enter into a contract, oral or written for performing their respective obligations for the purpose of concluding the transaction of sale. The principle of freedom of contract was preserved by the Sale of Goods Act 1893 where it is expressly provided that any right, duty or liability arose under the contract of sale by implication of law could be negatived or varied by express agreement or by the course of dealing between the parties or by usage, if such usage can bind both the parties to the contract. This provision was retained in the subsequent Sale of Goods Act 1979. But the 1979 Act further limited the application of the principle of freedom of contract by subjecting it to the Unfair Contract Terms Act 1977 which limits the extent to which the parties to a contract may negati ve or vary the rights, duties and liabilities arising there from. This principle also finds place in the Supply of Goods and Services Act 1982. Consumer protection The concept of consumer protection gives a different twist to the principle of freedom of contract. Laws that attempted to enforce fair trading was formulated to protect an honest trader from other unfair competing traders. In a consumer level transaction there is significant difference in the bargaining positions of the buyer and the seller. There is no statutory definition for the term ‘consumer’ and in the European Union law the term ‘consumer’ is usually limited to any natural person[23], under English law the term ‘consumer’ is not limited to individuals under the Unfair Contract Terms Act 1977. Even the Consumer Protection Act 1987 contains no statutory definition of the term ‘consumer’. By virtue of the Unfair Terms in Consumer Contracts Regulation 1999, ‘consumer’ means any natural person who is acting for purposes which are outside his trade, business or profession. Standard form contracts The commercial organizations may normally have standard form contracts where the terms are already laid down and it is expected that the party contracting with the commercial organization has to enter into the standard form contract. In such a circumstance there is no scope for any form of negotiation and the principle of freedom of contract is has no application except to the extent that the party may exercise discretion to refuse to enter into the standard form contract. In many cases the standard form is formulated by the trade association or as laid down in the statute. These standard terms may further be circumscribed by the concept of public policy. To an extent the standard form of contract helps to save time and allocate risk appropriately in commercial transactions. Such contracts commonly have certain boiler plate provisions such as the clauses relating to arbitration, consideration, choice of laws, definitions, exclusions, force majeure etc. Since this arrangement affects free negotiability of the terms of the contract, standard forms are subject to the test of reasonableness and some exclusion clauses limited or abrogated. Exclusion clause The exclusion clause is found in a contract where the parties wish to exclude statutory provisions under certain circumstance. Even if the statute does not deal with the status of the exclusion clause, there is no general rule that the courts can interfere to prevent giving effect to the exclusion clause if there is nothing unreasonable or unconscionable. But such exclusion clauses cannot protect a person from his own frauds. Even though the courts do not have a general power to strike out exclusion clauses, the following are some of the situations where the courts of law felt that it was appropriate to interfere with the principle of freedom of contract. A contracting party seeking to rely on an exclusion clause to save himself from liability in contract or tort to the other contracting party must show that it was incorporated as a term of the contract, which usually involves the taking of reasonable steps to bring it to the notice of the other party.[24] Similar principles of incorporation of the terms of the contract apply to the exclusion by non-contractual disclaimer of tort liability.[25] An exclusion clause is to be construed strictly against the party who introduced it and seeks to rely on it[26] (the contra proferentum rule); Whether a clause amounts to an exclusion clause is a matter of substance and effect, so that a similar attitude is taken to indemnity clauses inserted for the same purpose.[27] There is no objection to the public policy grounds to excluding rights of set-off.[28] If an equitable remedy is sought, the discretion of the court cannot be fettered by a contractual provision.[29] Where there is a contract between A and B containing an exclusion clause, a third party, X, will not be allowed to shelter behind the clause in the absence of clear evidence that he is a party to the contract and that the clause was intended to protect him. Similarly the burden of an exclusion clause in such a contract will not generally be imposed on him. The courts may either seek to establish the effect of the contract as a whole, taking into account the exclusion clause in defining the obligations of the parties or the exclusion clause may be regarded as a defence, in which case the court might establish the prima facie ambit of the contractual obligation without the exclusion clause and then consider the effect of the exclusion clause on that prima facie liability.[30] The exclusion clause should be clear to give effect to and to deprive one of the contracting parties of all contractual force with respect to the stipulations in the contract.[31] The task of the courts has been to look at the event and the consequent breach in order to ascertain from the words and conduct of the parties which created the contract between them what their presumed intention was and what should be their legal rights and liabilities whether they should be either original or substituted upon the occurrence of an event of that kind. The basis for the interference to the principle of the freedom of contract is only to the extent of deriving the intention of the parties and determines what was actually excluded and what were retained. Penalty clause Under the law of equity, the contracting party is relieved from the penalty clause where the intention of the penalty is to secure the payment of a sum of money or the attainment of some other object, and when the event based on which the penalty is made payable can be adequately compensated by payment of interest or otherwise. The true ground of relief against penalties arises from the original intention of the parties in the case.[32] In Photo Production Ltd v Securicor Transport Ltd[33] it was held that an agreement must not impose upon the breaker of a primary obligation a general secondary obligation to pay to the other party a sum of money that is manifestly intended to be in excess of the amount which would fully compensate the other party for the loss sustained by him in consequence of the breach of the primary obligation. In Jones v Society of Lloyds[34], Lloyds devised a reconstruction and renewal settlement offer to provide financial assistance to Lloyd’s names in m eeting their accrued liabilities to Lloyds. The settlement included a ‘finality amount’ which was a sum, less than the amount owed by the name, that was required to be paid in order to discharge their liability to Lloyds and a clause in the agreement provided that if an accepting name failed to pay his finality payment then the settlement credits would be lost and he would, therefore, be required to pay the entirety of his liability. It was held that the mechanism was a reverse of the penalty clause and that it was a conditional benefit. Penalty clauses do not find favor before a court of law where it related to penalty in a money bond, payment of money by installments such as hire purchase agreements or for doing or omitting to do a particular act. There should be sufficient reasons for the court to interfere with the freedom of contract and will not generally, merely because a person has made an improvident contract, relieve him from its consequences[35]. The relief is granted only where compensation can be made for the breach. The power to strike down a penalty clause in a contract does not reconcile with the principle of freedom of contract and is designed for the sole purpose of providing relief against oppression for the party having to pay the stipulated sum. It has no application in the cases where there is no oppression.[36] Equity and common law allows interference where the contract is unconscionable or oppressive. Such circumstances arise as a result of : the degree of disproportion between the stipulated sum and the loss likely to be suffered by the plaintiff. This factor is relevant for determining the oppressiveness of the terms of the defendant. the nature of the relationship between the contracting parties. This factor is relevant for determining the unconscionability of the plaintiff’s conduct in seeking to enforce the penalty clause. Before such relief is granted, the courts have to ascertain whether the sum specified in the contract as payable in the event of breach of contract is a penalty or liquidated damages, that is whether at the time of entering into the contract the predominant contractual function of the provision was to deter a party from breaking the contract or to compensate the innocent party for the breach of contract.[37] In Nutting v Baldwin[38]

A Portrait of the Artist as a Young Man - The Powerful Female :: A Portrait of the Artist as a Young Man

The Powerful Female Character in Portrait of the Artist as a Young Man    One of the most powerful nuances of any writing is the dialogue within the story. In literature, it is all too often that characters live only in the jaded voice of the author and never truly develop as their own, or are not strongly opinionated in a manner which contrasts the opinions of the writer. It is also unfortunately true that the women depicted in most male-authored literature do not often sound realistic, or how most women one would speak to in the course of the day tend to sound. All too often, women are depicted on a lower level of speech than men. For instance, Dickens and Arthur Miller both apparently subscribed to this notion, as the women in their stories were usually more passive, and not as elaborate as men in their speech, however, James Joyce did not see things in the same light. The most developed female character in Joyces A Portrait of the Artist as a Young Man, is one who speaks with dignity, passion, and the female tact which is all too often ignored in the c haracters of women. Joyce's Dante Riordan's words and thoughts are true to those of literate twentieth century women.   Ã‚  Ã‚   Although a short-lived character in Portrait, Dante Riordan, in a brief amount of time emits an apparently important and mysterious aura, the aura of a woman. Judging from the studies of twentieth century linguists, Joyce's brief representation of Dante through speech is nearly flawless. To more lucidly understand this, one must carefully examine some of the instances at which Dante speaks in her conversation with Mr. and Mrs. Dedalus, Charles, and Mr. Casey, and re-examine the arguments she makes. Dante is introduced into the dinner table conversation as a silent character. However, when the men's conversation turns to the misuse of the preacher's pulpit, Dante begins her interjections.   Ã‚  Ã‚   All too often, women in literature remain linguistically dormant unless called upon, however, studies conducted in the reality outside the covers of a book have shown that women will interrupt a conversation to contradict a previous speaker, and do so vehemently (Coates, 193). A nice answer for any man calling himself a catholic to give to his priest, (Joyce, 273) states Dante as her first response.   Ã‚  Ã‚   At this point, Dante has drawn herself into the conversation.