Estore at Shelll Essay

In recent years there has been shift in the fuels and lubricant marketplace that has resulted in more price-sensitive customers and a growing downward pressure on Shell Canada’s margins. Due to the financial pressure to reduce costs, Shell Canada launched an online, self-serve â€Å"eStore† to their agricultural customers in hopes of streamlining their business, cutting costs and salvaging their shrinking profit margins. The purpose of this case report is to address and analyze the issues surrounding eStore, identify the best alternative to solve the key issues and determine the most appropriate method of implementation. It is anticipated that these findings will illustrate the strengths and weaknesses of potential solutions, which will in turn lead to actual implementation of the best solution. Key issues encompassing Shell’s shrinking profit margins, communication and delivery and technology were identified and discussed. Using a SWOT analysis and the Porter’s Five Forces model, internal and external factors affecting the eStore business plan were analyzed. In accordance with the analysis, three alternatives were generated including the redesign of eStore website, abandonment of the online project and the generation of alternative self-serve strategies. After considering which solution would best serve the eStore initiative at Shell Canada, it was determined that continuing with the project and redesigning eStore would be most effective and a plan of implementation was established. It is recommended that Shell Canada follow the implementation plan in order to attain maximum success for eStore. Despite some reluctance of agricultural customers to adopt an online ordering system, there are clear opportunities for Shell’s eStore initiative to succeed in this market. Introduction As a leading manufacturer, distributer and marketer of refined petroleum products, Shell Canada limited is one of the largest integrated petroleum companies in Canada. With consolidated earnings of $810 million and $9. 5 billion in assets in 2003, Shell Canada was ranked the 14th largest company in the country. In recent years there has been a shift in the fuels and lubricant marketplace that has resulted in more price-sensitive customers and a growing downward pressure on Shell’s margins. The agricultural segment s specifically underperforming and because of this, Shell hoped to effectively implement an online ordering system that would decrease the need for costly rural sales representatives. After the initial launch in September of 2002, it was noted that eStore was not as successful in attracting and retaining customers as initially planned. This report will outline key issues, conduct internal and external analysis and prepare an action plan to implement the best solution to achieve success in Shell’s eBusiness initiative. Key Issues Shell has three key issues that need to be addressed before deciding how to best proceed with the implementation of eStore. Shrinking Profit Margins in the Agricultural Segment With the shift in the agricultural segment towards price-sensitive customers, Shell Canada is currently experiencing a growing downward pressure on margins and is thus faced with the need to minimize costs. The remoteness of Shell Canada’s agricultural customers provides unique challenges in managing communication, delivery and sales settlement, therefore there is a need for a more streamlined process in managing these customers. Using local sales representatives in the agricultural segment is costly, and thus Shell is faced with the need to move towards a more efficient, self-serve strategy for these customers. In order to effectively decide on an implementation strategy for eStore, Shell Canada needs to determine an optimal self-serve strategy to satisfy these customers. Communication and Delivery The second key issue is centered upon the lack of sufficient marketing of eStore. After the initial implementation of eStore, Shell Canada noted a pattern whereby customers had signed up for an account only to not use it again or use the system only perfunctorily. Feedback from the customers indicated a range of issues, including a lack of familiarity with eStore and a preference to use other options such as their local sales representatives, or the call center to place their orders. Some customers had not heard of eStore, and those who had, did not see the added value of eStore, and were concerned that an online solution was no better than either placing their orders directly through the 1-800 call center or faxing orders in directly. Many preferred to do business with their local sales representative as they valued the personal relationship of dealing with someone in their own community. Shell is faced with the need to develop a strong marketing platform that will attract customers to eStore in order to increase usage levels. Technology A user experience review of eStore by RareMethod consulting group also indicated a number of technological issues with the eStore website. While some customers saw the value, many found it cumbersome to use and experienced inconvenient interface-related issues. Some customers found the website cryptic and often encountered trouble when typing the Web address. If they failed to type the secure connection URL, it appeared as if the system was non-responsive. Also, the passwords automatically generated by eStore were often too complex for the customers to remember. They required the customer to remember a random sequence of letters and numbers in order to conform to the strict security guidelines. The log-in screen was confusing to customers as it presented what appeared to be two separate log-in panes, one for customers, and one for employees. As these two options were not clearly labeled, customers who chose incorrectly would be presented with an error notification, and would invariably stop trying to log on. The e-mails customers were receiving from eStore were also confusing. Instead of receiving e-mails from eStore, customers were receiving e-mails from eBusiness, and having no familiarity with eBusiness, would often ignore them. In order to enhance the user experience and retain customers on the system, Shell must eliminate these cumbersome interface-related issues and design a website that is more user-friendly. Given these key issues, the following ranking was created based upon their importance and urgency. Shell’s greatest strength is arguably the relationship they have developed with their agricultural customers. By taking advantage of the rapport the local representatives have built with their rural customers, Shell can effectively use these employees as distribution channels to promote eStore. By using Shell International, Shell Canada can also capitalize on considerable resources and expertise to develop an effective implementation strategy. The Electronic Customer Access to Shell (eCATS) initiative by Shell International to develop a generic electronic store can be used as the basis for the self-serve application needed in the Canadian marketplace. By using eCATS as their platform, Shell Canada is able to considerably reduce the development costs. Capitalizing on these strengths will allow Shell to effectively implement eStore in their target market. Weaknesses  Although assessed above as a strength, the relationship the local representatives have built with the rural customers is concurrently one of Shell’s weaknesses when considering the implementation of eStore. Because customers have been able to enjoy a personalized working relationship with members of their own community, they could be hesitant to adopt an impersonal online system that will remove the valued relationship they have with their local representatives. The lack of sufficient marketing for the eStore project is also one of the weaknesses Shell faces in implementing eStore. Many of Shell’s customers have never heard of eStore, and those have do not see the added value in using an online system. Even the local representatives are not fully on board as many feel their time is better spent dealing with client issues rather than promoting eStore. Other weaknesses pertain to technological and user-interface related issues. The customers that have tried eStore are not currently satisfied with the online system and as a result, eStore is experiencing low usage levels. Opportunities Due to the remoteness of many of Shell’s agricultural customers, there is an unfulfilled need to develop a system that makes communication, delivery and sales settlement easier and more efficient for these customers. An online, self-serve strategy provides customers with an easy, convenient way to place orders and gives Shell an opportunity to more effectively manage these customers and generate sales. Also, while a competitor analysis showed that there were many competitors in the market such as Imperial Oil, Irving Oil, UFA, PetroCanada and Federated Co-op, none was pursuing initiatives similar to eStore. Because these companies are likely experiencing the same margin compression, this gives Shell the opportunity to salvage profit margins and simultaneously increase their market share by providing customers with the innovative offering of an electronic store. Streamlining business using an online system would not only attract new customers, but it would also cut costs and relieve some of the pressure on Shell’s margins. Threats Although Shell Canada has few external factors that would seriously threaten the implementation of eStore, there are a few considerations to keep in mind. With the shift in the agricultural segment towards price-sensitive customers, Shell Canada must find ways to satisfy these customers in order to maintain their business. Shell must ensure that an online store is the most effective way to keep these customers, not deter them. Also, although no other company has currently developed an electronic store, there is nothing stopping them from developing one in the future. If Shell is unable to effectively implement their eStore, another competitor could easily learn from Shell’s mistakes, and develop a more effective online system that would satisfy the particular customers Shell was trying to attract. Porter’s Five Forces Analysis The ‘Porter’s Five Forces’ model was designed primarily to conduct industry analysis. It may aid a company to understand both the â€Å"strength of their current competitive position and the strength of the position that they are looking to move into. The model is used to identify whether new products, services or businesses have the potential to be profitable† (Porter’s Five Forces, 2010). Figure 2: Illustration of Porter’s Five Forces Model Source: http://www. quickmba. com/strategy/porters. html Supplier Power- Low  The supplier provides the input for the final product or service, and therefore the supplier for Shell’s eStore is the developer and platform owner. Although implementation of the online system requires the development of at least some the applications since they are not readily available in the marketplace, Shell has extensive resources to draw upon from within the organization therefore making the supplier power low. Members of the Calgary IT group were involved with the development of eCATS and Shell Canada has a strong information architecture already established to guide the implementation of eStore. Buyer Power- High With the shift in the agricultural segment from traditional based farming methods to business-class farming, the fuel and lubricant market currently consists of highly price-sensitive customers. As business-class farmers make up a vast majority of Shell’s agricultural business at 95 per cent, these customers control about 2 percent of Shell’s total market share, and make up a significant source of revenue. Since there are no associated switching costs, customers can easily choose to do business with any company offering the lowest price. As well, customers can decide which services best meet their needs and implementing an electronic store website is only as useful as the number of users. If few people make the transition, regardless of the services eStore can offer, the system will be virtually useless. Threat of Substitutes- High Although substitution is currently not a threat as no other companies have developed an eStore, it is likely that another company could easily develop the same initiative in the near future. While the internet is not heavily regulated in Canada, there is no way for Shell to develop a patent on their eStore system. Another company could not only follow suit, they could learn from Shell’s mistakes and make their own store more effective. Although Shell Canada had the cost-saving advantage of using eCATS as their platform foundation, technology is getting cheaper and companies may be easily able to buy better, more effective online applications off the shelf. Similarly, if Shell fails to satisfy customers with an online ordering system, ustomers may look to other companies that offer the representative relationship they prefer. Barriers to Entry- Low The marketplace in which eStore will conduct business is online, and therefore there are very few barriers to entry. Because there is little regulation online, other companies can easily enter this marketplace with similar initiatives. Moreover, it is often the case that the second version of an IT system is better than the first, therefore other companies can see what Shell has done with eStore, and make their version even more efficient. Competitive Rivalry- High  Taking into consideration the aforementioned factors, competitive rivalry can be considered high. With price sensitive customers in the agricultural segment occupying 2% of the market share, and many players in the market, the company that offers the lowest price will assume this customer base. Shell’s online initiative could potentially set them apart from the competition by offering an innovative, more efficient way of doing business. By reducing their own costs, the savings could then be passed on, at least partially, to the customer in the form of lower prices.

Illegal Street Race Essay

The incident reported by AP (17 February 2008) and Vogel (17 February 2010) refers to an accident involving illegal street racing that killed eight bystanders in Prince George’s County near Washington. The killer race took place between two racers at 3 am on 16 February. According to the press reports, the two drivers had initially performed ‘burnouts’ where the cars are spun around in low gear, top acceleration but with breaks as this warms up the tires and the engines. It also creates a lot of smoke due to burnt rubber, smoke that did not go away but gathered like a shroud around 300 bystanders who had gathered to watch the race. When the racers came along the street, they could not see the crowd hidden under the smoke and one of the cars rammed into the crowd at speeds of more than 100 miles per hour, killing eight people and injuring others. Police teams that arrived after the accident used techniques of interviewing the witnesses and those injured to reconstruct the events that took place. Since identifying the victims was difficult due to the large number of bystanders, the police took digital pictures of the victims and showed them to the people to find their identities. There was no criminal motive behind the crash and the crash was not also pre-mediated murder. The report says that illegal street racing has been popular in the dark back roads of the areas since decades. Racers often modify their cars so that it runs much faster and the prize money can also be very tempting. However, the main motive for participation is the chance to brag about the win and gain a reputation among the local people (Vogel, 17 February 2010). According to RASR (22 May 2003), young people from different nations have been subjected a false portrayal in movies and computer games that illegal street racing is glamorous. Many of the games such as Need for Speed, Fast and Furious, Burnout, Grand Theft Auto and others portray such deviant behavior as racing on the streets, killing people, running over or beating policemen as an achievement. Added to this is the fact that car racing has a lot of glamour factor with speed and girls. As a result, youth would willingly take up such races if they have the chance. The motivation for the racer in many cases is to break the law and do something dangerous that people in their group appreciate. The fact that people get killed during a crash does not bother the racer and neither the fact that the racer himself may get killed. Organizations such as RASR – Racers Against Street Racing is made of professional racers who have started a campaign to make illegal street racers to stop such activities and race in legally organized track races. The important thing about legal track racing is that bystanders are safe and racers have to observe certain rules of behavior. The group is similar to many others who believe that making illegal racers to be aware of the danger is the best deterrent. Policing each and every rural road is simply not feasible. The argument about the quantum of punishment meted out to drivers of such races that crash and kill people needs some consideration. All these years, in USA, the quantum of punishment was not very strict and the killer driver would have his license impounded, the vehicle destroyed followed by a light jail sentence. However, with increasing number of illegal racing accidents, the law has become much stricter. Robert Caizalez of California and his competitor who killed 3 people in an illegal race in 2009 were sentenced to 48 years and 45 years to life. In Saudi Arabia, an illegal street racer who killed 2 people was not only sentenced to be lashed 3000 times but also 20 years jail. These laws seem very strict but they are required to act as a deterrent for illegal street racers who kill children as well as the elderly. So on the face of it; I would argue that such strict and harsh rules are important to keep the streets safe. However, the counter argument would be that the culture of creating a glamorous image of street racing through violent and deviant video games still continues unpunished. The firms that make such games are not penalized and neither is any study done on how such games influence people to take up illegal street racing. While killers should be punished, the government and the courts should empower the police force to stop the sale of such violent games. More than strict and severe sentencing, what is needed is counseling and creating an atmosphere where the racers themselves come to terms with their deeds is important. Over speeding happens every second on the road and deaths also occur but the drivers are not sentenced to 48 years to life in prison. A proper and balanced view must be taken by the honorable courts to create deterrence through strict sentencing and also through counseling.

Standard Chartered and Dubai World The lending problem Essay

Standard Chartered and Dubai World The lending problem - Essay Example This paper focuses upon Standard Chartered Plc, a financial services company, which operates in more than 70 countries around the world. The headquarter of the bank in London, the United Kingdom. The company has entered different countries through the joint venture, subsidiaries etc. The operation of the company is diversified as it offers operations in consumer banking, institutional banking, and corporate banking also. Standard Chartered is listed on the London Stock Exchange; also it is the constituent of the FTSE 100 index. The company is also diversified globally as it offers services all the continents of the world. 90% of the revenue of the company comes from the Middle East and other Asian countries and Africa. The bank offers a diversified range of products including mortgage loans, investment banking, wealth management, corporate banking, wealth management services etc. Dubai World is among one of the main clients of Standard Chartered Bank. The investment company has faced credit crisis in the time of the financial recession and the main creditor of the company was Standard Chartered bank. The geographical presence of the company minimizes their risk. In a globalized world where the multinational companies have to face different political conditions, economic conditions in different countries, then only diversification can minimize the risk of the portfolio of the company. In the time of financial crisis of 2007-09, when all the markets throughout the world have broken, then the diversification helped the company to manage the situation.  

Developing an action plan Essay Example | Topics and Well Written Essays - 3500 words

Developing an action plan - Essay Example In fact, the concern for the quality of care provided by a healthcare facility is as old as the field of medicine. Increasingly, governments, stakeholders in the industry, and regulatory agencies have identified the importance of ensuring that the quality of care was addressed. In effect, stakeholders have designed approaches that healthcare facilities can use in order to improve the quality of care they provided. In addition, stakeholders have identified the incentives to provide to healthcare facilities whose quality of care was in line with the requirements provided by the regulatory agencies and other stakeholders. While the need to improve the quality of care cannot be overemphasized, the healthcare industry has witnessed a number of measures that are pertinent in awarding healthcare institutions rankings after they met various standards. One such measure is the Hospital Consumer Assessment of Health Providers and Systems (HCAHPS) scores, which healthcare providers are supposed to implement in order for them to benefit from incentives accrued from its implementation and high ranking (Zusman, 2012; Jennings, 2010). The proviso of attaching HCAHPS scores to incentives of a healthcare provider has played an instrumental in the need to improve the quality of care. In this case, healthcare facilities have realized that improving the quality of care provided to their patients was an effective approach towards raising their HCAHPS scores. Improving the quality of care is an essential element of enhancing customers’ experience in the healthcare sector, which is crucial in creating a positive customer perception about a healthcare facility. Consequently, customers whose experiences in a healthcare facility were positive provided positive feedback regarding their perception based on their experiences during their time as patients in a healthcare institution, which improves the HCAHPS scores of a healthcare institution. In effect, a high ranking ensures that a n organization receives reimbursements and funding of its projects. In line with this, this article develops an action plan for improving HCAHPS scores in a healthcare facility. To carry out a comprehensive plan, the article will highlight the objectives of raising the HCAHPS scores, processes that will address improvement of HCAHPS scores, the implications of the plan on staff, patients, and resources, cost-benefit ratio, and the timeline for implementing the action plan. Objectives The specific objective of raising HCAHPS scores is to improve the quality of care provided by a healthcare facility. On the other hand, the Agency for Healthcare Research and Quality (AHRQ) together with the Centers for Medicare & Medicaid Services (CMS), which were instrumental in developing HCAHPS surveys, identified three goals for HCAHPS. In this case, the two organizations identified the first goal as the production of meaningful data regarding patients’ perceptions on healthcare facili

Probation, Pardons and Parole Essay Example | Topics and Well Written Essays - 1000 words

Probation, Pardons and Parole - Essay Example The officer will gather information about the criminal from the criminal’s family, victims and any other relevant individuals. ‘Normally the PSI report contains; prior criminal convictions and juvenile adjudications, description of the offense, the defendants vocational background and work history, defendants marital status, financial status, length of residence in the community, educational background and other pertinent data, medical history, substance abuse history, and psychological or psychiatric history, harm suffered by any victim, victims impact statement, defendants statement, applicable sentencing guidelines, evaluation of the defendants probable adjustment in the community based upon factual information in the report, sentencing recommendations including any consecutive sentencing requirements’. (THE PRE-SENTENCE INVESTIGATION REPORT (PSI) KNOW YOUR RIGHTS) This paper focuses on the basic purposes of a PSI report, Supreme Court ruling with respect to th e confidentiality of a presentence report, sentencing guidelines and mandatory sentences which affect presentence investigations, Sources of information contained in the presentence report etc. Besides being instrumental in determining his federal prison sentence, the PSI is vitally important with respect to Bureau of Prisons’ (BOP) federal prison designation, security level, custody level, restitution issues, work assignments, bunk assignments, furlough eligibility, transfers, community custody placement, inmate quality of life enhancements, admission into the 500-Hour Residential Drug Abuse Program and how the inmate is treated in prison by both the guards and inmates. (Pre-Sentence Investigation Report (PSI)—Examples of What’s In It) The main purpose of a PSI report is to aid the judge in determining the sentence. The criminal background of the person is important in determining the

Idealized Architecture + Public Implications Essay

Idealized Architecture + Public Implications - Essay Example On the contrary, the project failed due to institutional racism and the post war population changes that occurred in the industrial cities. Despite the various claims that have been put forward as the causes of the project failure in this, it is revealed that architects face very big challenge when it come to designing major public buildings. The first problem is normally the size of the project. The Pruitt Igoe project was oversized consisting of 33 buildings on 57 acres of land (The Pruitt-Igoe Myth). This was a major challenge for the project architects. The second problem is the difficultly in understanding the clients that they are serving and their needs due to the high number of users of the buildings. The film reveals that had the architects understood the clients that they were serving, the failure could not have occurred. The final problem is the constant design changes. The project that was initially designed by Yamasaki was a less massive development project .However, various aspects of the complex were value engineered hence making it unresponsive to the needs of the

Vessel traffic services (VTS) & coastal surveillance system (CSS) Essay

Vessel traffic services (VTS) & coastal surveillance system (CSS) - Essay Example International Maritime Organization (IOM) defines Vessel traffic services (VTS) â€Å"as a service implemented by a competent authority designed to improve the safety and efficiency of vessel traffic and to protect the environment. The service should have the capability to interact with the traffic and to respond to traffic situations developing in the VTS area† (Paine, n. d. p.3). Functions of Vessel Traffic Service (VTS) The main function of a Vessel Traffic Service (VTS) is to provide active monitoring and navigational advice for vessels in particularly congested and busy waterways hence it enhances safety of life and property and optimizes the marine traffic flow. Except this Vessel Traffic Services Protect the environment by early detecting the leakage or spillage of any pollutant material Enhance efficiency of vessel movements and port marine resources Provide information to the concerning authorities about movements of ships carrying hazardous or noxious cargo onboard. Provide Search and Rescue assistance Classification of Vessel Traffic Services Vessel Traffic Services are classified either on the basis of surveillance or location. On the basis of surveillance VTS are classified into two classes. These two classes are Surveilled and Non-surveilled. According to US Cost Guard Navigational Center (2005), ‘surveilled systems consist of one or more land-based sensors (i.e. radar, AIS and closed circuit television sites), which output their signals to a central location where operators monitor and manage vessel traffic movement. ... The system which provides the monitoring and navigation assistance while entering or leaving a port, when sailing through waters or along the rivers is called as Harbor (or Port) Vessel Traffic Services System. Costal VTS mainly concerned with maritime trafficking passing through a particular cost line (SOLAS Ch V-Regulation, n. d.). VTS and VTSMIS The primary purpose of a VTS (as defined by IALA) is to provide active navigational and monitoring advice i. e; to give a clear, concise, real-time picture of vessel traffic movements at ports and in deep waters, hence to avoid any collision incident. In changing global scenario as economic factors have received priority the trade and ties are rapidly increasing. Consequently vessel traffic across the globe is increasing. Therefore the sever conditions of competition, unregulated use of sea space and asymmetric threats stimulate the increase risks, violations of legal norms and constant necessity of critical services at sea (Dereliev, 2004 pp.115-116). Hence to fulfill the wide range of applications VTS employs a variety of hardware and software modules that collect, integrate, assess and display sensor data in a manner that provides a comprehensive representation of the vessel traffic situation to VTS operators (NORCONTROL IT AS, 2005). This enhanced Vessel Traffic Services System along with traffic planning and screening tools is called Vessel Traffic Management and Information System (VTMIS). VTMIS System Architecture VTMIS is capable of doing all type of surveillance activates. It employs a variety of hardware and software modules that collect, integrate, assess and display sensor data in a manner that provides a comprehensive

Revenue and Mitigation Essay Example | Topics and Well Written Essays - 500 words

Revenue and Mitigation - Essay Example Apparently, there are advantages and disadvantages associated with donations to the police and they must be weighed effectively, in order to determine the best possible option for effective community policing. One of the principal advantages is that donations can provide the extra revenue needed to fight crime. Further, the sponsorship drives can be used as platforms to enhance community awareness about the crime prevention projects and initiatives that the police are undertaking. Donations can also provide law enforcers with additional opportunities to interrelate with members of the public at social events. Disadvantageous implications of donations to the police include the donors thinking that they would get preferential treatment in case they break the law. In worst case scenarios, donation could distort priorities of the police, since they might feel obliged to serve donors first (Hess and Orthmann 492-493). Nonetheless, the pros of donations outweigh the cons, and the latter can be overcome with proper regulations in place. It would be possible to capitalize on the public’s good will, while upholding transparency of donations or sponsorship. For this reason, the police department is inviting community groups, councils and businesses to invest in its projects and initiatives, so as to establish a safer environment for all. The department guarantees that financial assistance received will aid in building and strengthening links with all stakeholders to facilitate crime reporting and prevention. Further, sponsorship will clearly align with the police force’s objectives of supporting cost effective measures to reduce crime. The force will uphold absolute integrity in all its dealings, in a setting of heightened accountability and scrutiny from the public. Members of any community have a significant role to play in prevention or coping with events that pose danger to their welfare or that of people close to them. Majority of hazard management

Exam two Case Study Example | Topics and Well Written Essays - 1250 words - 1

Exam two - Case Study Example It is essential to note that the authors have provided the basic building blocks for management theories and their ideas are effective even now and this is clear from the examples like United Parcel Services which implements the ideas of the authors. The ideas form a basis for building the efficiency on automation, computerization and also scientific management principles and for relatively larger organizations ideas like the fixed hierarchy of authority, and division of labor and defined regulations still hold good in the current work environments. Hence these theories are very effective. i) Centralized approach: In terms of the centralized approach, there decision making is strong, authoritarian and in a number of cases this is also charismatic. Also here all the controls follow the top-down method hence making the execution decisive and coordinated along with being really fast as well. This method is also helpful in dealing with major issues and changes (Schermerhorn, Hunt and Osborn). However this can prove to be a disadvantage as well as the top management will not always have a clear picture of the events and working conditions in different locations and this can hence lead to issues as well. ii) Decentralized Approach: On the other hand considering the decentralized approach, it is essential to note that this method uses a bottom – up approach and concentrates on the culture and also learning dynamics (Ricky W Griffin). This method is also based on democratic and participative decision making which is very useful as it deals with all issues and tasks at hand locally without the interference of any management which is not present in the place. The decentralized business approach used in companies extends possible business opportunities for the entire business in terms of product improvement, design, research and expansion. The drawback of using this method is that it can lead to the division of

Asian Art Essay Example for Free

Asian Art Essay Folk arts in Azerbaijan have a long and interesting history. Works of art made from metal extracted from Nakhichevan, Migachevir, Gadanay, Gandja and other places are approximately 5000 years old. Crockery, weapons and adornments found here are not historical facts alone, but valuable sources which testify the skills of the master. Different pictures, scraped on housing implements made from copper, bronze, gold and adornments, prove existence of fine art in Azerbaijan since ancient times. Carpets were made by several separate carpet-making schools of Azerbaijan (Guba, Baku, Shirvan, Gandja, Gazakh, Nagorny Karabakh, Tabriz) in different periods. Bhutanese art Bhutanese art is similar to the art of Tibet. Both are based upon Vajrayana Buddhism, with its pantheon of divine beings. The major orders of Buddhism in Bhutan are Drukpa Kagyu and Nyingma. The former is a branch of the Kagyu School and is known for paintings documenting the lineage of Buddhist masters and the 70 Je Khenpo (leaders of the Bhutanese monastic establishment). The Nyingma order is known for images of Padmasambhava, who is credited with introducing Buddhism into Bhutan in the 7th century. According to legend, Padmasambhava hid sacred treasures for future Buddhist masters, especially Pema Lingpa, to find. The treasure finders (terton) are also frequent subjects of Nyingma art. Each divine being is assigned special shapes, colors, and/or identifying objects, such as lotus, conch-shell, thunderbolt, and begging bowl. All sacred images are made to exact specifications that have remained remarkably unchanged for centuries. Bhutanese art is particularly rich in bronzes of different kinds that are collectively known by the name Kham-so (made in Kham) even though they are made in Bhutan, because the technique of making them was originally imported from the eastern province of Tibet called Kham. Wall paintings and sculptures, in these regions, are formulated on the principal ageless ideals of Buddhist art forms. Even though their emphasis on detail is derived from Tibetan models, their origins can be discerned easily, despite the profusely embroidered garments and glittering ornaments with which these figures are lavishly covered. In the grotesque world of demons, the artists apparently had a greater freedom of action than when modeling images of divine beings. Buddhist art Buddhist art originated on the Indian subcontinent following the historical life of Siddhartha Gautama, 6th to 5th century BC, and thereafter evolved by contact with other cultures as it spread throughout Asia and the world. Buddhist art followed believers as the dharma spread, adapted, and evolved in each new host country. It developed to the north through Central Asia and into Eastern Asia to form the Northern branch of Buddhist art, and to the east as far as Southeast Asia to form the Southern branch of Buddhist art. In India, Buddhist art flourished and even influenced the development of Hindu art, until Buddhism nearly disappeared in India around the 10th century due in part to the vigorous expansion of Islam alongside Hinduism. Burmese contemporary art Burma (Myanmar) is a country in Southeast Asia which has endured isolation for the last four decades. It is also a country with deep rooted Buddhist beliefs. The contemporary art scene in the country reflects these facts, and the art is often related to Buddhism and the difficult socio-political situation. In this age of globalization, Burmese contemporary art has developed rather on its own terms. Chinese Art Chinese art has varied throughout its ancient history, divided into periods by the ruling dynasties of China and changing technology. Great philosophers, teachers, religious figures and even political leaders have influenced different forms of art. Chinese art encompasses fine arts, folk arts and performance arts. Eastern Art Eastern art history is devoted to the arts of the Far East and includes a vast range of influences from various cultures and religions. The emphasis is on art history amongst many diverse cultures in Asia. Developments in Eastern art historically parallel those in Western art, in general a few centuries earlier. African art, Islamic art, Indian art, Chinese art, and Japanese art each had significant influence on Western art, and, vice-versa. Indian art Indian Art is the art produced on the Indian subcontinent from about the 3rd millennium BC to modern times. To viewers schooled in the Western tradition, Indian art may seem overly ornate and sensuous; appreciation of its refinement comes only gradually, as a rule. Voluptuous feeling is given unusually free expression in Indian culture. A strong sense of design is also characteristic of Indian art and can be observed in its modern as well as in its traditional forms. Persian art The Iranian cultural region consisting of the modern nations of Iran, Afghanistan, Tajikistan, Azerbaijan, Uzbekistan, and surrounding regions is home to one of the richest art heritages in world history and encompasses many disciplines including architecture, painting, weaving, pottery, calligraphy, metalworking and stone masonry.

Competition And Market Power Economics Essay

Competition And Market Power Economics Essay For a long period of time, De Beers has been successfully raising consumer demand for diamonds. The company is famous for its monopolistic policies during the last century, when it used its leading position to control the international diamond market. De Beers had a number of methods to ensure its control in the market: thus, it joined some independent manufacturers to its single channel monopoly, it pushed the manufacturers who refused to join the cartel out of the market by overfilling the market with diamonds, it bought and stored the diamonds of other producers in order to regulate the prices (De Beers Company). Pure monopoly means the conditions in the market, when only one company produces and sells a product that has no substitutes. The market access is limited and the company has complete control over prices. Thus, in pure monopoly, the market is dominated by a big enterprise-monopolist fully controlling the prices. Establishment of extremely high prices is restrained by the risks of a fall or a lack of consumer demand. Monopolist assesses demand and sets the price at a level that ensures the greatest return on investment (Larue, Gervais Pouliot, 2008). Monopolies are also public utilities, the services of which are used by any business. The existence of natural monopolies is justified by the fact that they best meet the public interest. In rural areas, such monopolies can be companies supplying agricultural machinery, chemical fertilizer, seed and breeder farms, businesses that provide repair services. The main features of monopoly are as follows (Larue, Gervais Pouliot, 2008): There is only one firm in the market, which affects the prices, adjusting the proposal; There are no identical products in the market; Controlling the market of raw materials in the industry, the company-monopoly excludes the emergence of new producers. Thus, the market of pure monopoly is the market of one seller. Most frequently, these are the governmental organizations, with the state monopoly able to solve various problems through pricing policies: To set a price below the cost for socially important goods to maintain their standard of living; To set a price covering the costs or providing a good income; To set a high price to reduce consumption. Returning to De Beers Company, for the last decade it has been undergoing changes turning into a more reliable company. A number of factors led to the necessity for transformation in the De Beers model (De Beers Company). In 2004 the company was declared guilty according to the 1994 accusation that De Beers had merged with General Electric to control the price of industrial diamonds; the company paid $10 million to the United States Department of Justice. Contemporary diamond industry is noticeably differs from that of the last decade, as it is now a complicated and continuously developing geopolitical notion. Today, apart from De Beers, the most important players in the diamond business are the African producer countries (e.g., Botswana and Namibia), Rio Tinto, Lev Leviev, BHP Billiton, Alrosa, Harry Winston, etc (De Beers Company). 3. Monopolistic Competition Luxury Watch Industry: Go to http://images.businessweek.com/ss/06/05/watches/source/1.htm (Retrieved May 17, 2010). This is an interesting article on luxury watches. Click on the slide show in the upper right window (check out the prices!). Are these three firms participating in a monopolistically competitive market? What characteristics of the good make the market monopolistically competitive? Explain. A recent study by the Luxury Institute has determined the watches that are considered by the wealthy consumers to be the best out of the top 17 ultra luxury watch producers: Franck Muller, Vacheron Constantin and Audemars Piguet, Patek Philippe and Breguet, though Rolex and Cartier were most famous brands. Nowadays, even not so well-known watchmakers take an equal part in monopolistic competition with the world leaders (Business Week, 2010). The market with monopolistic competition is characterized by the following features (Yomogida, 2010): The presence of multiple buyers and sellers (the market consists of a large number of independent companies and customers), the number of which doesnà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢t exceed the one present in pure competition. Low barriers for the entry into the industry. This does not mean that it is easy to start a monopolistically competitive firm; such difficulties as problems with registration, patents and licenses are still present. To survive in the market in the long run, monopolistically competitive firms need to produce diverse, differentiated products, which differ from that is offered by competing firms. Moreover, products may differ from one another by one or several properties (e.g. chemical composition of watches); Buyers and sellers are perfectly informed about market conditions; Predominantly non-price competition; advertising of products is very important for the development. Companies of this type have a negative slope of the demand curve. In monopolistic competition, the output is set at the level of profit maximization (marginal revenue equals marginal cost). However, when deciding on the establishment of prices for products, a monopolistic competitor acts like a monopolist: the price for the goods is set at the highest possible level, i.e. at the level of the demand curve for products. Just as at the market of perfect competition, in monopolistic competition the firm relies on the value of the average total costs, deciding whether to remain in the industry or leave the market. Thus, if the company continued to suffer losses, it means that the average total production costs exceed the established price per unit, and the firm will leave the market in the long run. It should be noted that, since the monopolistic competitor is dynamic in the decision-making, it cannot effectively allocate resources, which leads to inefficiency of such firms in the long run. It is practically impossible to have a positive profit at the market of monopolistic competition in the long term (Yomogida, 2010). 4. Oligopoly The OPEC Oil Cartel Go to www.opec.org (Retrieved May 17, 2010). What are the organizations stated goals, which countries are members, and when was it founded? Is it normal for them to be successful in keeping oil prices high, or have they faced difficulties in keeping the cartel united in the past? The Organization of the Petroleum Exporting Countries (OPEC) is an international intergovernmental organization (also called a cartel), established by oil-producing powers and including 12 countries: Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Libya, United Arab Emirates, Algeria, Nigeria, Ecuador and Angola. The aim of OPEC is to coordinate and develop a common policy with regard to oil production among members of the organization, maintaining stable oil prices, providing a stable supply of oil to consumers, and benefit from the investments in the oil industry (OPEC). OPEC members control about 2/3 of world oil reserves. Their share in the world oil makes 40%, or nearly the half of the world oil exports. At different periods of its history, the Organization of Petroleum Exporting Countries controlled from 25% to 60% of oil production in industrial countries (Hansen Lindholt, 2008). At the same time, the cartel represents a very unstable structure, based on collusion in order to establish a monopoly price in the market, which can be unsatisfactory for some members of the cartel; this finally leads to the violation of the cartel agreement. At first glance, the similarity of the cartel and monopoly is obvious. But the cartel very rarely (in contrast to the monopoly), controls the entire market, because the policy has to deal with non-cartelized enterprises. In addition, the cartel members have quite a powerful temptation to cheat their partners, reducing prices or actively promoting their product, which creates the conditions for the capture of the market (Hansen Lindholt, 2008). Failure to fully and consistently use the cartel for the interaction of oligopolistic firms is forcing them to conduct secret economic policy in price changes and in the delineation of the spheres of influence. Such cooperation may manifest itself in the form of price rigidity or leadership in price formation, and through special organizations such as patent pools. The rigidity of prices is the oligopolistic practice, when, even with changes in costs or demand, an organization is not inclined to change prices, believing that if it has to raise the price, others will follow, which will lead to loss of market share. In this way, the cartel stays away from changing prices due to the fear to unleash the war of prices. Leadership in prices means the practice, when the formation of prices for the product is focused on the prices set by the leader often dominant in this industry. This demonstrates the kind of implicit collusion, although its presence is usually not proven (BÃÆ' ¶ckem, 2004). Patent pools represent an agreement on specialization and cooperation of production, and the consortium the union of firms to conduct joint scientific research and joint construction of large investment projects. Both of these organizations perform cartel functions and are the basis for the organization of conspiracy to divide the market. Thus, the oligopoly is characterized by three features: there are two or more competing firms in the industry, so that the industry is not monopolized (OPEC and Russia relation); demand curve has a falling character, so the industry does not have rules of free competition; at least one large organization operates in the industry, any action of which causes a reaction of competitors (OPEC oligopolistic practices), so that there is no monopolistic competition (BÃÆ' ¶ckem, 2004).