Downstream Linkages in the Zambian Copper Industry

Downstream Linkages in the Zambian Copper Industry Resource extraction is often regarded by governments and people of resource-rich countries as a solution to poverty alleviation, ranging from tax revenues, technology transfer, and employment creation, export enhancement to upstream and downstream linkages. Downstream linkage industries do promise the widening of employment opportunities and high foreign earnings as a result of value-addition. Western resource intensive economies such as Australia, Canada, US and the like are examples of well-managed, resource-rich economies in which the mineral sectors spurred knowledge-intensive processes, created jobs and foreign exchange earnings and resulted in spill-overs into new industrial and service sectors. The scope of downstream linkages is often considered an important determinant of the extent to which a mineral-rich nation stands to gain additional economic benefits that come with it. This explains the continuous pressure that is always mounted on mining companies by host governments to engage further in downstream activities. However, downstream activities irrespective of their location are influenced by global market dynamics and competitive elements. Therefore, in an attempt to grasp the benefits that come with downstream activities, it is extremely imperative to examine the opportunities, risks and possible ways of striking a balance taking cognizance of the global demand and supply interplay to ensure that the highest possible net positive benefits are achieved and sustained. In focus is Zambia which has been an active copper mining country since 1900s though performed poorly along the line but revamped barely in the last decade. In 1968, Zambia held an important position as a copper producer, with peak output at 815,000 ton and a 15% share of world output, but the abysmal performance of its state-owned enterprises that took over after the 1969 nationalisation resulted in a drop of output to a trough of 250,000 tonnes in 2000 (Radetzki, 2009p.182). Nevertheless, the copper industry has been revitalised with the privatization of the mining sector which occurred between mid-1990s and early 2000s. In the period 2000-2005, copper exports contributed to around half of total foreign exchange earnings, but from 2006 onwards, this share increased to 73.5% 83.2% ( Fessehaie, 2012 p.3). Copper also provided 10% of formal employment and its contribution to GDP in the last decade increased on a yearly basis, reaching 9.1% in 2009. Copper mining has and continues to be one of the largest economic activities in Zambia, comprising approximately 10 percent of GDP and more than 60 percent of exports (Wilson, 2012pp798-799). The paper therefore examined downstream or for ward linkages to copper production in Zambia by first exploring the scope of downstream linkages and examined the risks, opportunities and risks mitigation measures in the downstream sector of Zambias copper industry. The rest of the paper is structured as follows; section two introduces the background and established the theoretical framework. Section three examined the scope of downstream activities, the risks, opportunities and possible measures for risks mitigation and section four concludes with recommendation. 2.0 BACKGROUND 2.1 A Brief Overview of Global Copper Production and Consumption The global cumulative annual growth in global mine output of copper has gone through significant changes over the period 1750 to 2007. It stood at 0.8% in 1750-1800, rose to 2.6% in 1800-1850 and from 1850 and until 1900, the annual growth of copper production accelerated to 4.5%. Output expansion subsequently reduced to an average of 3.3% between 1900 and 1950, and remained at this level until 2007 (Radetzki, 2009p.182). In 2011, global copper production reached an output level of 16100 metric tonnes from 15900 metric tonnes in 2010 with a total reserves value of 690000 metric tonnes (USDSp. 49) (2012). On the other hand, growth rates in global copper consumption fell from 4.48% in the period 150-1973 to 0.65 covering 1973-1983 largely explained by the oil price shocks of the 1970s and 80s and picked up again, reaching 2.51% for period 1983-2003 (Nishiyama, 2005p..132). The period following 1990 saw a significant increase of Asia, especially Chinas share of global copper consumption , currently about 40% (ICSG) which gradual spurred up copper prices in the mid-2000s. The interplay of Chinas demand growth and appropriate timing of additions to production capacity speaks a lot about the future global trends in both production and consumption. 2.2 Overview of Copper Mining in Zambia Copper mining in Zambia dates back to the 1900s under the control of two mining companies, Rhodesia Selection Trust and Anglo-American Corporation (AAC)( Fessehaie, 2011p.16) .The industry came to be nationalized in the late 1960 and was operated under state ownership and control, a typical characteristic of mining operations in mineral exporting countries in the decades following the Second World War. The government, following years of significant losses, privatized its copper mines, which were later consolidated into the Zambia Consolidated Copper Mines (ZCCM), majority-owned by Government (60.3%), with a minority share owned by AAC (27.3%)( Fessehaie, 2011p.16). For instance, Kansanshi mine, the largest copper project in Africa is 80% owned by First Quantum Minerals Ltd and 20% by the state run ZCCM Investments Holdings which replaced ZCCM (ARB, 2012). The mining sector is regulated primarily by Act No. 7 of 2008 (the Mines and Mineral Development Act of 2008). The Zambian copper industry is not insulated from the acquisitions and mergers characteristic of the global mining industry. In 2011, Barrick Gold Corp. of Canada acquired Equinox Minerals Ltd. of Canada (USp43.1). Newshelf 1124 (Proprietary) Ltd. of South Africa, an indirect subsidiary of the Jinchuan Group Ltd. of China acquired Metorex Ltd. of South Africa and its underground Chibuluma copper mine (Metorex Ltd., 2011, p. 8). Konnoco Zambia Ltd., a joint venture of African Rainbow Minerals Ltd. of South Africa and Vale, continues with the development of the Konkola North underground copper mine (African Rainbow Minerals Ltd., 2012, p. 70). Mining companies equally undertake joint ventures in explorative activities in Zambia. Argonaut Resources NL of Australias subsidiary Lumwana West Resources Ltd. in a joint venture with Mwombezhi Resources Ltd. of Zambia set to explore in Northwestern Province (Argonaut Resources NL, 2012, p. 2). Zambias economy is heavily reliant on mining, particularly its copper and cobalt, and the mining sector makes significant contribution to Zambia exports and economic growth. Copper output rose dramatically following the copper price rise in the mid-2000s with annual copper production increased from 335,000 metric tonnes in 2002 to over 569,000 metric tonnes in 2008 (Wilson, 2012) . From 2007, copper exports contributed 73.7-80.5 per cent of total foreign exchange earnings, 10 per cent of formal employment, and in 2010 Zambia was the largest copper producer in Africa and the 7th largest in the world ( Fessehaie, 2012). Copper exports jumped from $474 million in 2000 to almost $4 billion in 2008. In 2010, the mining and quarrying sector accounted for 9.9% of Zambias real gross domestic product (at constant 1994 prices) compared with a revised 9.3% in 2009. Copper exports earnings increased by 15.5% to US $6,660.2 million from US $5,767.9 million in 2010 (Bank of Zambia, 2012, p. 23,) a nd in 2011, copper exports were valued at $6.9 billion (Mobbs, 2012 p.43.1). 2.3 Theoretical Framework The concept of linkage development in the academic discourse has its root from early works of Leontief (1936) who applied an input-output analysis to static quantity modeling (Lenzen, 2003 p.1), modified by Rasmussen (1956) for inter-industrial analysis as setting the basis for structural interdependence. In determining the key sectors of an economy, Hirschman (1958) argued that above-average linkages are pre-requisites for economic development and structural changes within an economy or a region (p1-2). Contrary to this argument, Bharadwaj (1966), Panchamukhi (1975) and McGilvray (1977) highlighted that international comparative advantages, technical and skill endowment, final demand structure are among the driving forces of economic growth and concluded that linkage interconnectedness is a weak rod to rationalising a development policy(1-2) According to Hirschman as cited in Morris et al (2012), there are three main types of linkages in the commodity sector thus, fiscal, consumption and production linkages. In his view, fiscal linkage encompasses royalties and taxes which together form mineral rents; consumption linkage entails the consumption demands of workers of the commodity sector, whereas the production linkage encapsulates both backward and forward linkages. Authors such as Sonis and Hewings (1989, 1999) and Sonis et al. (2000) in their works on the dynamics of backward and forward linkages, and economic landscapes of multiplier product matrices pushed further the arguments of Hirschman and Rasmussen (Lenzen, 2003 p. 2). The linkage thesis has been applied in a number of studies in attempts to examine the impact of mining on economies. Lenzen (2003) utilised the input-output application in his analysis of the key environmentally important factors of production, linkages and key sectors in the Australian economy and concluded without a factual basis that strong forward linkages are characteristic of primary industries like grazing and mining whereas strong backward industries characterized secondary industries (p.29). Similarly, Cristobal and Biezma (2006 p1,5) analysed the forward and backward linkages of mining and quarrying in ten EU countries to determine whether the industry constitute a key sector and came to a conclusion that the mining and quarrying industry has a strong backward link to regional economys production more than other sectors and otherwise holds for forward linkages. Though not a metal mineral, the Southern Louisiana offshores oil fields is the most apparent successful linkage ca pture identified throughout the 20th century. The ability to sustain pre-existing competition and the availability of the commodity in large quantities were largely responsible for the successful linkage capture (Freudenburg and Gramling (1998p 575-576). Moreover, Aroca (2001p 131) employed the input-output Leontief matrix to determine the impact of the mining sector on the Chilean II region and analysed the driving forces to the extent of the impact. With regards to the volume of production, his analysis indicates that the mining sector is very important but loses its importance in developing forward and backward linkages in the economy. Lydall (2009 p.2, 119) investigated backward linkage capture of South Africa platinum group metals and found different categories of supplier firms, ranging from base, medium to large able to satisfy the needs of the various PGM mines, concentrator plants, smelters and refineries. She however cautioned the existence of market-related and firm-speci fic factors militating against the growth and expansion of such linkages. Morris et al (2012 p 1-2,14) examined the underlying factors to linkage capture in the commodity sectors in low income countries in Sub-Saharan Africa with much attention on backward linkage capture and recommended for strategies to be mapped to propel industrial sector upgrading especially in commodity exporting countries. Also, Fessehaie (2012p 2,7) examined the determinants of upstream linkages to copper production in Zambia. She noted that backward linkage was growing and copper mining presents opportunities and recommended that in order to broaden backward linkage to utilize such opportunities there is the need to eliminate barriers to upgrading through an industrial policy which takes care of supplier competitiveness constraints. From the preceding literature reviewed, much attention on linkage capture studies has been directed at the backward linkage capture. The few works on linkage development in Zambia copper (Fessehaie, 2011 and 2012; Morris, 2012), the emphasis has been on the backward linkage. Therefore, the existence of paucity of studies that investigate forward linkages in the mineral sector particularly the copper industry in Zambia exposes a gap which the study aims to contribute to. 3.0 ANALYSIS AND DISCUSSION 3.1 The Scope of Downstream Activities Forward linkages encompass the establishment of downstream activities, at least processing and refining of copper ore and concentrates into primary metal, the fabrication of primary metal into semi-fabricated products and possibly, induced industrialisation. For the purpose of this study, mining ends with primary metal production and downstream activities begins with semi-products fabrication and beyond. Zambian copper industry has long history of existence but became more active and copper mine production of ore, anode and cathode increased following the privatization of the mining industry through the 1990s to early 2000s. The majority of copper ore mined in Zambia is smelted locally before being exported to foreign markets (Fraser and Lungu, 2007 Wilson). Fig 3.1 confirms that though greater share of mine output is refined locally, very less of it is used in the country. The graph covered a short period due to lack of access to up-to-date quality data. Zambias copper is mainly exported as cathode or blister, the standard forms of the internationally-traded commodity. Zambia uses less than 5 percent of its copper output to make fabricated products (World Bank, 2011 p ii). However, finished goods containing copper are mainly imported into the country. Zambia has developed a small copper fabrication industry that produces a narrow range of products for domestic use and for export to regional markets, largely informed by proximity to customers guided by profitability. However, these markets are small, and yet the industry competes with larger and more developed industries especially that of South African copper fabrication industry. Zambias fabrication industry is growing rapidly, but from a small base, led by Metal Fabricators of Zambia Ltd (ZAMEFA), a subsidiary of the US-based General Cable Corporation followed by others such as the Cast Product Foundry Non Ferrous Metals, Kavino and Central African Recycling in the scrap metal busi ness (World Bank, 2011p ii). ZAMEFA which has a domestic, regional and international market orientation produces wire rod, wire, cable, and a few other products. Its product portfolio is growing. Kavino, wire and cable manufacturer has a domestic market orientation whereas Central African Recycling is well positioned to utilized opportunities as they arise. Total number of employees falls below 1000. In 2008, Zambian mine, smelter and refined copper output in tonnes stood at 546 600, 232,000 and 416,900 respectively. The fabricated metals production sector contribution to GDP grew at an annual average of 0.2 percent for the period 2002 to 2008.(World Bank, pp 18). 3.2 Risks Associated with Downstream Activities The resource-based industrialiation that characterized the development process of resource-rich developed economies is often quoted to back resource-rich developing countries quest for resource-driven industrialisation which in their view masterminded the in dustrialiation process of some mature economies. However, the growth strategy of the Nordic countries, United States and Canada for instance did not based entirely on mineral extraction but span from a low-technology based on low-cost labour to highly sophisticated knowledge-intensive activities (Walker and Jourdan, 2003. P.30.). Nevertheless, risks, largely economic, abound alongside the potentials of further downstream activities. Downstream activities beyond primary processing are capital intensive and require less skilled labour. Guided by profit motive, firms seriously consider capital cost in securing capital to finance assets. Backed by the electronic revolution, market efficiency sets the ground for capital and skills to be deployed to most productive locations (Walker and Jourdan, 2003p 30) and countries without traditional comparative advantages like Zambia are less strategic in competing for foreign direct investment. Again, the capital intensive nature of further processing of copper questions the employment multiplier and rather breed associated risks of either expanding or contracting employment opportunities. Moreover, the fabrication industry uses 37 percent of copper that is derived from scrap metal which is limited in the country (World Bank, 2011p.iii). Therefore, importing other raw materials including scrap for fabrication may not make any comparative advantage sense in the short to medium t erm and highlights the risk associated with an uncompetitive and injudicious allocation of the nations scarce economic resources. The ability to compete and access adequate market, both regional and global to justify downstream activities on any significant scale comes with a risk. Committing resources into fabrication without any competitive market edge exposes the copper mining sector to possible collapse and the entire economy to possible shocks. This is because upon the small size of the sub-regional market (less than 1 percent) of the global total for fabricated copper products (World Bank, 2011p ii) better established firms in South Africa have captured a greater portion of the regional market. Internal demand for fabricated products is woefully inadequate and therefore, the promised job expansion, high foreign earnings and associated growth potential are easily erodible, if even attained. Walker and Jourdan, 2003p 33 noted that domestic demand was instrumental in Swedens initial resource-oriented industrialisation. Closely linked is tariff escalation that discourages exports of higher value-added products from Low Income Countries (LICs) (IMF, 2011p.16). Tariff escalation and high physical transport cost jointly further accentuate the risks to Zambian copper downstream activities. Consuming countries of copper metal and semi-fabricated products especially the newly industrializing countries and roaring developing countries of China and India, in their industrialization drive, have in one way or the other resort to restrictions in the form of differential tariffs (varies directly with the value already added) on raw materials imports for their industries. Dimaranan et al, (2006 p. 13) note that Indian policy measures in this regard include more effective duty exemptions for intermediates used in the production of manufactured exports. The high transport cost and tariffs imposed on value-added products together can cancel completely if not negate the often expectant high profits and associated em ployment multipliers. The prices for both the primary and fabricated products of the mining industry are characterized by troughs and peaks. However, the existence of terminal markets such as London Metal Exchange (LME), the Commodity Exchange Division of the New York Mercantile Exchange (COMEX/NYMEX) and the Shanghai Metal Exchange (SHME)(ICSGP.33factbook) provides mitigation to the risk on primary metal resulting from price volatilities. On the other hand, high-value added downstream products are more prone to price shocks as there exist no such terminal markets in that sub-sector of the industry. Therefore, the often envisaged employment multipliers and high foreign earnings that motivate pressure for further downstream processing places the entire economy at risk in the event of weak prices without any competitive edge. Mainstream fabricated metal products are largely low margin items. However, high level of capacity utilization and throughput is required to generate sufficient margins which are currently in non-existence in Zambian copper industry. This is largely informed by the uncompetitive and comparative disadvantages to the downstream sector of Zambian copper industry. The situation exposes the downstream copper fabrication industry to the risk of at best earning low margins. In 2008 for example, First Quantum Ltd, a leading European copper rod producer made profits of 12.2% and 49.6% from large Cap Cast Copper Rotors (CCR) rod mill and Oxygen-free High Conductivity (OFHC) rod fabrications respectively (World Bank, 2011p.13) but earned a profit of 85.4% from primary cathode production. Such low margins in fabrication gives the signals that even internationally competitive manufacturers of range of specialist copper products rather earn high margins in primary metal production. 3.3 Opportunities in Downstream Value-addition The existence of copper deposits in substantial quantities is a basic requirement for mining in the first place and possibly, further downstream processing (Freudenburg and Gramling, 1998). The existing domestic and regional market does not incentivise further copper fabricating on any significant scale, but some localised small-scale opportunities may emerge. In this regard, there may be a scope for some gradual scaling-up of existing output and/or product diversification by existing operations especially ZAMEFA and for some small-scale artisanal processing, probably based on scrap metal. Sectorial opportunities could be enhanced if the basic and mainly infrastructural bottlenecks are remedied. One of such opportunities is the World Bank support to revamp Zescos existing distribution networks in selected areas to reduce losses and improve supply quality (World Bank, 2011p.33,34). Depending on the roll-out of electrification extensions, there may be some demand for low and medium vol tage. Moreover, the global copper industry has identified a potential market which could exploit the known biocidal properties of copper in combating Methicillin-resistant Staphylococcus aureus (MRSA,) spread by its use in touch surfaces and all fixtures and fittings in hospitals and clinics. The international competitive nature of the downstream activities of fabrication limit these opportunities as well established firms are ever ready and prepared to cease any market opportunities as they arise and compete out less competitive ones. Chinas dominance in the recent global copper consumption forecloses in comparative and competitive terms, any opportunities of developing an internationally competitive further copper processing in Zambia at least, for the short to medium term. For instance, Chinese refined copper consumption expanded by an annual 15.3% in the 1998-2007 period and by 2007, Chinas share of global copper usage rose from 10.5% to 26.9% (Radetzki , 2009. P. 177) in a decade. Though very important, the geological potential does not itself guarantee comparative and competitive advantage in any appreciable further downstream processing. For instance, Chile, the worlds largest copper producer, accounting 34 percent of world mined copper output and 17 percent of wor ld refined copper output, yet its use of refined copper is less than 1 percent of the world total (World Bank, 2011.8) 3.4 Mitigating Downstream Activities-Associated Risks and the Way Forward Value-addition is critical to ensuring greater benefits and competitiveness for countries incorporated in the global economy (Mtegha and Minnitt, 2006 p. 236) hence further downstream processing should be encouraged and driven by state incentives taking cognizance of the external environment. A strong manufacturing base has to be developed if any significant expansion of copper value-addition activities is to grow. In order to grow and sustain a downstream fabrication sector and even beyond, new sources of accessing competitive foreign direct investment and the continual adaptation and innovation of technology which is critical to maintaining technological competitive edge globally are ideal prerequisites. Moreover, demand is indispensable in industrial development and therefore any effort in that regard must first address the market end of the value chain ranging from local, regional to global levels. The ability to create a clear niche advantage is required if the copper downstream activities are to undergo substantial growth. Ideally, attaining global competitiveness is the single most important driver in mitigating risks ranging from further downstream processing or fabrication. While this may possibly be a long term growth and development goal in the downstream sector, the provision of adequate energy, communication and other infrastructure coupled with the effective and judicious use of economic returns from copper mining for diversification in new comparative advantage industries would in the papers view set the foundation for any competitive industrialisation in the long run. From table 1 below, South Africa is better positioned to cease any downstream copper fabrication and market opportunities at regional level and at the global level, China. 4.0 CONCLUSION AND RECOMMENDATION The study explored the scope of downstream linkages in the Zambian copper industry and examined the risks of engaging in downstream fabrication as well as the opportunities and suggested ways for mitigating the risks. The study reveals a small and modest fabrication activity producing a narrow range of products for domestic use and for export to regional markets, largely informed by proximity to customers guided by profitability. The decision in going downstream beyond primary metal processing encapsulates political and economic dimensions hence, requires striking a balance between both dimensions. Shaping a competitive mining industry alongside conscious efforts to diversify into other industries which gradually grow to shake off the initial copper-based dependence is a policy option and at the same time revitalizing the national science, technology and innovation policy to provide the foundation for long term skills and knowledge development. Chile, having built a competitive minin g industry, diversified its economy into other competitive sectors which propelled its growth. In the short to medium term, developing a competitive copper mining industry is plausible and more realistic in comparative advantage terms while mapping out strategies to attain competitiveness from national, regional to global scales which will mitigate further copper processing or fabrication risks.

Essay on Political Rights

It was decade when the sexual revolution swept the country and when women proclaimed their liberation from male dominance. The totality of this period will be explored, from protests to songs, literature to leisure and civil defense to civil rights. You will examine music, especially the translation from music about love and relationships to the more society-focused music at the end of the decade. In Dalton to writing critical essays and analyses, you will work In Project Based Learning (PL) that will synthesize your Interpretation of the material covered. Student Outcomes.At the end of the course students will be able to Identify and explain the main economic, political and social issues connected with the Sixties Include a thesis statement that accurately guides ideas in all critical writing Analyze songs at the surface and deep levels and explain their cultural context Write reflections that include all five categories in reflective rubric Work collaboratively to achieve agreed up on goals. Policies: Class Attendance: when a student misses four or more classes during a quarter, that student will receive a zero (O) for the (30%) participation portion of the course. 0 or ore minutes late will be considered an absence. Three lattes equal one absence. Mobile Phones/Laptops/loops: Not allowed under any circumstance, unless turned off. Late Work: Accepted only under extenuating circumstances and only when one meets with the instructor before the due date. Otherwise, all late papers will receive a failing grade. Incomplete: assigned only under extenuating circumstances, after speaking with me. Only 50% of all work can be made up, if a student receives a failing grade for the course. Grade Percentages: 32% Four (4) four-page papers: economic/political, social, language, music 20%Quizzes/Reflective Writings 28% Final Project (includes final presentation) Course Texts and Materials: The Electric Cool Aid Acid Test, by Tom Wolfe The Best and the Brightest, by David Halt ers. Readings will come from this book, but there will be less emphasis on it than in the past course. Sixties Course Book, with Readings. The daily schedule below can be altered based on the decision of the instructor. Additional readings may be assigned as necessary (to expand understanding). All work will be graded using the course rubrics.Classroom Behavior: The use of cell hones and other electronics (including pods and laptops) is prohibited. You may be asked to leave class if they are used. Additional violations of NEST disciplinary code may result in suspension or dismissal. In addition, the instructor has the right to curb classroom discussion in an effort to meet the educational objective of the class session. For those who stray beyond the bounds of acceptable behavior, the NEST Student Conduct Code will be enforced. Details of all projects and assignments will be provided in sufficient time to allow for completion.

Finding Topics to Write a Discursive Essay on

Finding Topics to Write a Discursive Essay on What's Really Going on with Topics to Write a Discursive Essay on For instance, the voice expressed in the essay needs to be calm and the tone ought to be as balanced as possible. Ideally, however, you should attempt and receive a second opinion. Anyway, direct and indirect quotes are required to support your understanding of academic writing style. By the way, there are lots of writing services available which will be able to help you present an outstanding academic essay. A conclusion is, undoubtedly, the main portion of the argumentative essay as possible either support the superior impression or destroy it entirely. Try to remember your conclusion isn't only a repetition of the arguments you have mentioned in the aforementioned body paragraphs but an overview of the principal findings. So be certain that you don't make the identical mistake. To conclude, author's opinion ought to be distinctly summarized. Gather the same quantity of evidence for each side of the argument in order for your article isn't going to appear biased. Remember if you choose a controversial topic then you can't speak from either side. The 5-Minute Rule for Topics to Write a Discursive Essay on There are a lot of intriguing topics that could be become a persuasive essay if you take the opportunity to think about doing it. How to compose argumentative essay sports online customized essay writing service it is very important to mention that affordable essay writing help has at all times been. You don't need to acquire super technical with legal argumentative essays, but make certain to do your homework on what the present laws about your preferred topic actually say. There are lots of aspects about a sport that may be argued in an essay. It's possible to choose any topic from the blue to compose a discursive essay but the topic ought to be controversial or argumentative. To do so, you will need to get a guide to compose the very best essay on the selected topic. If you're in a college and wish to compose an argumentative essay, you should pick a subject of high importance. If you're not able to locate a superior essay topic for your discursive essay then you may select completely free discursive essay topics from singaporeassignmenthelp.com. An essay was defined in a number of means. If you're thinking about how to compose a persuasive essay, you must know that writing an essay is a complicated procedure. A Discursive essay is a sort of academic essay that contains an exhaustive discussion on the specific subject issue. Exercising is vital for shedding weight. A child of one parent gets hardworking and practical faster than the person who has both the parents. The ideal time to exercise is in the morning when you're fresh and energetic. A minumum of one parent should work at home. You're not alone in the event you do. Below is an extensive collection of 50 ideas for discursive essays that you are able to refer to any moment. It is vital to pick a great topic so as to compose a good paper. Writing a narrative essay isn't that difficult. Y ou can begin with a spicy anecdote in order to add humor to discussion. Examine the sample essay to realize how the writer waits until the conclusion to present his private response. Both are essential to compose a well-rounded discursive article. Introduction The very first question you may ask is the way to begin a discursive essay introduction. It's possible to easily finish any type of essay aside from discursive by altering the context of the topic. Sometimes you may also be asked to compose a discursive essay wherein you don't argue for or against the subject or statement but instead should present your very own unbiased views and opinions on this issue. When it has to do with writing an argumentative essay, the most essential issue to do is to select a topic and an argument that you could really get behind. You may continue to keep your argumentative essays for your upcoming job portfolio in case they're highly graded. The most important body of the essay should provide some suggestions for a potential way to solve the issue and possible state consequences or expected outcomes. Sometimes such a task demands the same quantity of time that you require for writing. Whenever you do a discursive endeavor, you might n ot have a question whatsoever. Understanding Topics to Write a Discursive Essay on An excessive amount of money isn't a good thing. You might still be searching for new topics (which you need to be) but you'll be amazed to know there are dozens and dozens of free and paid online resources from where you're able to get host of helpful tips. The guarantees we offer are sufficient to make you recognize why we are a favorite name among the university scholars across the world.

Methodology - PESTC Analysis - Free Essay Example

Sample details Pages: 7 Words: 2189 Downloads: 10 Date added: 2017/06/26 Category Marketing Essay Type Research paper Did you like this example? Methodology 3.1PESTC analysis Purpose PESTC analysis determines the key external environment that directly or indirectly affected the company (Jurevicius 2013). This helps the company to understanding situation of country and helps managers in decision-making either enter the country or not. PESTC analysis normally is the framework that will be selected as the tool to scan the issues of macro-environments (factors that are unable to control by the organisation) that affected the business environment (Vitez 2014). Don’t waste time! Our writers will create an original "Methodology PESTC Analysis" essay for you Create order PESTC analysis is a useful strategic tool to understand market potential, business potential and direction for operations (Kotler 1998). Cautions Manager can be making better decision if the PESTC analysis conducts first before completing with the SWOT analysis (Downey 2007). This is because conducts PESTC analysis can provides the evidence to support the threats and opportunities of SWOT analysis. However, market forces will continuous change through the times. Therefore, Babatunde and Adebisi (2012) mention companies should be proactive and conduct PESTC analysis to ahead the changes. Political Political refer to change of government influence that has large influence on companies. Law are always updated and amended by the government such as employment law and intellectual property law, etc. Therefore, an organisation should carefully understands and studies on the political of the targeted country and analyse the issues arise from political environment such as political stability, trade tariffs, tax policies, etc (Vitez 2014). Taxes policy Government taxation policies on the sale of goods and services will affect the decision of foreign organisation to enter the country. If the country has a low or even zero taxes rate will be preferable by an organisation to enter rather than a high tax rate on good sales due to high tax rates cause the reduction of profitability (Klemm2009). According to Keegan and Green (2011), foreign organisation seen the opportunity to enter into China when the reduction of import duties due to the joined of World Trade Organisation (WTO). Intellectual Property Rights (IPR) IPR includes patents, copyrights, industrial designs and trademarks (MRC 2003). Organisation should ensure that patents and trademarks are registered in targeted country. According to Keegan and Green (2010), these intellectual properties that protected in home country may not protect in that countries. Therefore, organisation should clearly understand IPR in targeted country to avoid the future disputation when the problem arises. Corruption level Bribery means à ¢Ã¢â€š ¬Ã‹Å"dirtyà ¢Ã¢â€š ¬Ã¢â€ž ¢ activities involved in business practice such as cash payment during the negotiation of cross-border deal. Different countries have different degree of corruption. Olken and Pande (2011) mention corruption activities are more popular in developing countries compare to developed countries. Basar and Zyck (2012) mention most of the investor prefers to enter a country that is low degree of corruption. This is because the capital use to corrupt m aybe continuously as long as the business are located in the country and this expenditure will affected the profit of the organisation. Economic Economic conditions will affect the level of difficulty to be successful and profitability in a country because it direct affect capital availability, cost and demand of citizens (Koumparoulis 2013). An organisation normally will expand when the targeted countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s economic condition is favourable to them, such as low interest rate or high purchasing power parity. The others economic changes that are unable control by organisation include economic growth rate, unemployment trends, consumerà ¢Ã¢â€š ¬Ã¢â€ž ¢s disposable income and purchasing power parity, etc (Vitez 2014). Economic system is means how a country governed their economic market, it can be categorised into pure market economy, command economy and mixed economy (Peng 2011). An organisation must studies clearly on the dominant method of resource allocation and the dominant form of resources ownership in a country before making the expansion decision. Socio-cultural Social-cultural related to the pattern of behaviour, attitude, education, tastes and lifestyles of citizen in the targeted market (Vitez 2014). Organisation required studies into socio-cultural to adapt and suit in the target market. Additional, they also can forecast the future market situation of the country. According to Churchill, Brown and Suter (2010), organisation can be assessing the demographic such as birth rates, population growth rate, education level, social classes, sex distribution, and family size of the country. Beside this, the attitude of the citizens toward the product categories, brands and retailers also should be identifies and learn by managers to easily shape the target people with favourable attitudes (Nguyen 2013). Technological Nowadays, technology is particularly important for an organisation, especially in communication technologies. The databases and electronic communication enable the information share easily and faster. Good technology enable provide organisation some benefits such as cutting cost and improve service, particular benefit for new entrant (Nguyen 2013). Organisation should be identifying the availability of internet technology and penetration level of targeted country before the expansion. According to Hit, Ireland and Hoskisson (2007), advance technology in targeted country will allow the organisation learn and maintain their competitive advantages. Organisation that fails to catch up with technological trend will loss the opportunities to enter the market or even affected their status in current market (FME 2013). When enter into underdeveloped country, in turn, organisation should think the other way to solve such problem if the market attractiveness is big enough. SWOT analysis Description SWOT is acronym headings of strengths, weaknesses, opportunities, and threats. According to Sluismans, Lommelen, and den Hertog (2010), SWOT analysis is situational analysis that used to access organisationà ¢Ã¢â€š ¬Ã¢â€ž ¢s internal and external environment in strategic planning (Downey 2007). Strengths and weaknesses (such as operation) are the internal aspect of the organisation which they have more control over these factors (ProQuest 2010a). While Lee and Andrew (2000) noted that the opportunities and threats (such as political factors) consider as external factors (either positive or negative market situation) that are out of the organisational control. Purpose SWOT analysis helping in evaluating the factors that influence your operation and giving valuable guidance in decision-making (Mayhew 2014). SWOT analysis can analyse and identify the vital areas of the organisation either to emphasize or do some improvement on that particular area (Johnston 2014) . According to Ferrell and Hartline (2011), SWOT analysis is the simple framework to evaluating an organisationà ¢Ã¢â€š ¬Ã¢â€ž ¢s strategic position during or even before proceeds to the planning stage. Caution During SWOT analysis, the team should be realistic otherwise they are wasting their times to do the meaningless data collection. Solely list down the SWOT only do not provide useful analysis (Johnston 2014). Therefore, SWOT Matrix should apply to support this analysis. Strengths Description According to Ferrell and Hartline (2011), strengths of organisation exist because of resources that possessed by organisation or the good relationship with the customers, employees and/or outsiders. The internal factors can be categorizes in terms of cash flow, products, reputation, profitability and workforce, etc (Mayhew 2014). For example, workforce can be the strength of an organisation if they able create the best product to sales and/or providing high level of customer service to customers. Determine the Strengths An organisation should list down all the strengths of the organisation and compare with the key competitors (Suttle 2014). If the organisationà ¢Ã¢â€š ¬Ã¢â€ž ¢s vital areas are more competitive than their key competitors, it will be the strength of the organisation. However, in turn, if the key competitorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ expert in that area than the organisation, it will not be consider as strength for the organisation anymore and will becom e the weaknesses. If both parties have the high level of expertise in such area, it also can not consider as strength, yet necessity for the organisation. Action of Manager The identified strengths will become the organisationà ¢Ã¢â€š ¬Ã¢â€ž ¢s capability. Duncan, Ginter and Swayne (1998) mention the manager can leverage these benefits to achieve the competitive advantages during development of strategies. The other way round, identified weaknesses will try to be overcome or minimize the negative effect by the manager throughout the stages. Weaknesses Description Weaknesses are the areas that are not doing well or less efficient compare with others (Reichwein 2014). This means that the organisation is perform worse compare with other key competitors in particular area. Dix, Lee and Mathews (2002) mention organisationà ¢Ã¢â€š ¬Ã¢â€ž ¢s probability of success will increase if the weaknesses have been improved. The organisation must be remembered that the strengths will become disappear or even change to weaknesses over the times. Action of Manager The most obvious weaknesses must be come first and then start to do some improvement over it (Suttle 2014). For example, manager identified the areas or functions that cost the organisation in an unnecessary way. Therefore, the organisation can remove the task or cut down the expenditure for the areas and make the plan to profit the organisation (Johnston 2014). Opportunities Beside the internal factors, the trends and situations of the external environment should be concern by managers as well. Opportunities are the external factors or situation that organisations can take advantages (Mayhew 2014). In turn, threats are the external factors that will harm the business activities of organisation. According to Ferrell and Hartline (2011), external factors may enhance or restraint organisationà ¢Ã¢â€š ¬Ã¢â€ž ¢s ability to serve the needs of its customers. Dix, Lee and Mathews (2002) mention the examples of opportunity are regional growth trends, new distribution model needed, growth through market segmentation, etc. 1.3.4Threats Dix, Lee and Mathews (2002) notes that the threat means the obstacles of company that prevent them to accomplish their mission and vision. Organisation should clearly identify the threats that have direct impact on your business currently or the period does not longer than 5 years (Johnston 2014). This is because not all the identify threats are likely to happen, especially more than 5 years. Examples of threat are decrease of customer demand toward organisationà ¢Ã¢â€š ¬Ã¢â€ž ¢s products, price wars with competitors or the increase in competition (Suttle 2014). SWOT Matrix (Figure 1) SWOT Matrix means the matching of internal and external factors. The four combinations are Maxi-Maxi (Strengths/Opportunities), Maxi-Mini (Strengths/Threats), Mini-Maxi (Weaknesses/Opportunities), and Mini-Mini (Weaknesses / Threats). Figure 1: SWOT Matrix Source: Lee, SF Andrew, SOK 2000, à ¢Ã¢â€š ¬Ã‹Å"Building Balanced scorecard with SWOT analysis, and implementing à ¢Ã¢â€š ¬Ã…“Sun Tzuà ¢Ã¢â€š ¬Ã¢â€ž ¢s The Art of Business Management Strategiesà ¢Ã¢â€š ¬Ã‚  on QFD methodologyà ¢Ã¢â€š ¬Ã¢â€ž ¢, Managerial Auditing Journal, vol. 15, no. , pp.68-76, viewed 3 March 2014. (Emerald Insight) Maxi-Maxi (Strengths/Opportunities) The organisation strives to maximize firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s strengths to capitalize on new opportunities that found in SWOT analysis. Maxi-Mini (Strengths/Threats) Organisation strives to utilize their strengths to minimize the threats that faced in the targeted markets. Mini-Maxi (Weaknesses/Opportunities) Organisation strives to overcome and improve their weaknesses to achieve and gain the new opportunities from the targeted markets. Mini-Mini (Weaknesses / Threats) Normally, this matching is called defensive strategy. Organisation strives to improve their weaknesses and minimize or avoid the external threats of the environment. OLI Paradigm (Dunningà ¢Ã¢â€š ¬Ã¢â€ž ¢s Eclectic Paradigm) à ¢Ã¢â€š ¬Ã‹Å"OLIà ¢Ã¢â€š ¬Ã¢â€ž ¢ is the acronym heading of Ownership, Location, and Internationalization. This framework is developed by John Dunning. MNEs suggest to transfer O advantages at home country to specific countries (possess L advantages) which allow the MNE to internalise the O advantages (Rugman 2010). According to Zhao and Decker (), the organisation will adopt the entry mode with high control level such as wholly owned subsidiary if they possess more OLI advantages. OLI theory using to determines the accommodation of FDI and the foreign activities of multinational enterprises in a country (Dunning 2000). The major reason of organisation becomes MNEs or engaging FDI is due to economic gains. That means the organisation will pursue FDI activities when the gains have be significantly more than the costs of FDI (Peng 2011). Ownership Ownership advantage means the organisation possess the valuable and hard-to-imitate assets overseas (Peng 2011). Ownership advantages normally use to address the question why some organisation go abroad but not others (Neary XXXX). Some MNE has firm-specific advantages which allow it to offset the cost and liability to operate overseas (Nottingham 2005). For example, most productive firm is willing to pay the high cost of engaging FDI but not the low productive firm. According to Zhao and Decker (), ownership advantages can be management know-how, production differentiation or even the owning the property technology that can help the organisation to compete with overseas competitors. The organisation possess vital equity ownership position allows them to have huge management control rights (Peng 2011). Normally, FDI more prefer than the licensing because the organisation can reduces the dissemination risks and can tight control over foreign operations. Location Location advantage means those benefits that are enjoyed by the organisation due to firm do business in that particular place (Peng 2011). In other words, the uniqueness of the country that provide benefits to the organisation that doing business over there. L advantages help to exploit the potential created by the O advantages, which means combining the O advantages with the availability of complementary assets in targeted country (Nottingham 2005).The L advantages in a country include big market size, natural resources, aspects of the infrastructure, education system, and other aspects of external environmental (Rugman 2010). Internationalisation There is a close relationship between O and I advantages, which O advantages of home country normally will be internalised overseas (Rugman 2010). Internalization normally is the reaction to imperfect rules of foreign government toward the international transactions (Peng 2011). For example, the organisation realizes the uncertainty IPR of targeted country will internalize the organisation rather than just issuing the license to local citizens. I enable organisation to exploit their à ¢Ã¢â€š ¬Ã‹Å"Oà ¢Ã¢â€š ¬Ã¢â€ž ¢ advantages internally rather than to sell or license it to present the technology diffusion by competitors (Nottingham 2005).