College Education And The Middle Class - 1904 Words

Five decades ago, college was assumed mostly for the wealthy, not for the majority of the American population. Ten years ago, people assumed that all high school graduates will go to college, but yet today, far more number of people do not attend college than it was anticipated a decade ago. Why? Our society is mostly governed by a small number of people who occupy power. Those with power create a system that’s favorable to themselves and others in power. This directly and indirectly affects populations in the middle class and the lower class, especially when it comes to education. Over the years, the value of a college degree has increased in all terms, whether economically or socially. The knowledge gained from college is a great†¦show more content†¦One approach in absolving this problem is by attacking problems regarding unemployment and minimum-wage. Some of my friends have had to drop out of college because the costs are too high, while others who qualified for state flagship universities had to go to community colleges because they couldn’t afford the out-of-pocket expenses. In order to overcome these issues the government in Denver must implement common sense reforms to restructure the student loan system and make the debt burden more sustainable. Students should be wary of Congressional promises to make higher education more affordable. For the average American family, the price of college education has become unaffordable in strong correlation with unemployment. Unemployment had fallen only slowly since the financial collapse in 2008 and the recession that followed it. Many families are struggling to make ends meet in their daily lives, making college confusingly a necessary luxury. On the one hand, individuals stand to benefit immensely from having a college education, making the value of college seem priceless. On the other hand, the debt that comes from going to college does not seem worth the lifetime sacrifice that’ s associated with such debt. â€Å"About two-thirds of bachelor’s degree recipients borrow money to attend college, either from the government or private lenders, according to a Department of Education survey of 2007-8 graduates.† Although many forgo college for reasons

Oskar Schindler Analysis Essay Example For Students

Oskar Schindler Analysis Essay Oskar Schindler was a member of the Nazi party during the Holocaust. He had always dreamed about having a big fortune. Finally, his dream came true when he presided a factory in which many Jews worked. In the movie Schindlers list, directed by Steven Spilberg, we can see that during this time, the Jews were seen as animals and they had to work for the Nazis. If they could not worked, they were killed brutally. Generally, the people considered incapable to work were the people and the elderly. They were taken to concentration camps were their lives ended. When Oskar Schindler got his wealth, he realized that he was not as happy as he tough he would be. After seeing a lot of murders he decided to buy as many as many Jews as he could to make them work for him so that they could be saved. He made lists with a lot of names and he paid for each of them. Most of the people in those lists were those who could not work. He took them to labor in his weapon factory, and he told his workers that he was going to be very angry if one of the weapons really worked. When the war ended and the Jews got their freedom, Schindler lost all his money. Even thought he had lost everything he had always wanted to obtain, he got sad and started crying when he tough that the clothes he was wearing could have saved more people. One thousand Jews survived the Holocaust because of him. Nowadays, there are approximately 6000 descendants of those Jews. They remember Schindler as their father to whom they owe their lives. Schindler will be always remembered as a good person that realized that life has no sense when we only get. He also realized that spiritual wealth could be multiplied by giving it to others. We must give to be completely happy because the feelings that we have by giving are much better than those we have when we receive are. Giving is the only way to find a purpose to our lives. If we do not have a purpose, we will never find an answer to Why was I put on this world?Some people think that the time we spend on Earth is so short that we should try to get and receive as much as we possibly can to be completely happy. These people may think that that is the answer to the question: Why are we here?People that give in life receive much more reward s than people who only want to receive. Dr.Maradiaga, a family friend helps poor people that cannot afford to pay him. Once I asked him why he did it and he told me that for him it was very hard to know that people that are sick, can get worse because they cannot get the attention they need from an specialist and for him that is more reward to know he is helping people that really need him. He told me that helping people gives him a sense to his life and to his profession. In his book: Real Magic, Wayne Dyer states: You acquire and keep nothing for your life. All you can do is to give away in the service of others. It is a domain of purpose that miracles begging to occur in relationships (114-115). Another good example of someone that applies this principle is a woman from my country called Vivian Pellas. She has a lot of money and she is probably the richest person in my country. She owns a lot of companies but one day she had the bad luck that she was going to another country with her husband and her grandparents and the airplane crashed. She and her husband were lucky to survive this accident, but she lost her parents and she was in a very bad condition with second-degree burns and she was in a very serious situation. She now has to wear a glove to hide all the scars that she has because of the accident. Even though this was not a good thing, this help her realized that she could do more for people and she started to help people that dont have the money to have a surgery and she founded many organizations to help this people. The good part is that now she enjoys helping people and she is giving even if it is in smaller proportions to what she really could give. With her work , she is saving a lot of people and that is the best feeling in the whole world. You get the satisfaction of looking at people with a smile and that is worth millions. Nazism (2206 words) EssayGeorge Bush experienced something similar. In the recently opened George bush Library, there is a picture of a cute little girl that called everybodys attention. She was a daughter of Bush. Under the picture, a note narrates her story. She died of leukemia when she was 4 years old, and after her death Bush founded the Leukemia Foundation to give helps to those that are suffering this disease. Most of the times our suffering can be lessened when we do something to help others to diminish their suffering. Giving is again our best medicine. My Uncle Jose Alfredo has always loved giving to others. When he was a child, he enjoyed giving his toys to children that could not afford to buy them. When he grew up, he keeps his tradition. Although he did not have enough money, he used to make a big effort to buy some toys for the needy children. In addition, each time a friend knocked at his door for help, he was always there. Like magic, every business he runs is a success. He continues helping others much more than before, and happiness and abundance always mark his life. However, this abundance is not only of material things. He has abundance of love. He keeps telling me that life is the way he had always wish it to be. In his book, You would see it when you believe it, Dyer shares with us something that has helped him in his life: The more you give away without any expectations, the more you would receive back (197). Teresa Acquaviva is a nurse. She helps sick people and makes them her friends. In an article I recently read, she writes: My patients have tough me a great deal about their need to give when they feel they have received-about the cycles of giving and receiving (80). When we receive we do not have that warm feeling that comes when we know that what we did helped somebody else. Some days before Christmas my friends and I used to go to a nursing home in my city. We used to go and make that people spend a special day sharing things with them, making them laugh and giving them gifts. Usually, they gave us something they really appreciated. Generally, it was not very expensive, but it was very valuable for us. However, what they really gave us was that sensation of peace and love that we feel each time we do something to make someone happy. They let us make them laugh and that was the biggest gift we received from them. Life is so short. However, what we do in the few years we are here can be forgotten right after we are put in the grave, or they can be remembered forever. If we give to others, those who receive from us will make us immortal. To be immortal does not mean be physically here. It means being present in the persons heart. We can also be dead while alive if we do not do something to be remembered and appreciated. Giving is the only way to live forever. Otherwise, the words He lived and died, but no one knows who he was, will be read in our epitaph.

Monarch Apple Orchard free essay sample

Monarch Orchards Case Monarch Orchards, Inc. is one of the largest and most profitable apple orchards in New England. In addition to its commercial enterprise of growing and shipping several varieties of apples and fresh cider, it boasts a widely known antique picking orchard including varieties of apple trees dating back to the American Revolution. Forty Jamaican workers are employed from August to November each year by Monarch Orchards, Inc. The Jamaicans are the only employees in the company who pick the apples, moving from earlier to later varieties as these mature for market. The apple crop is the primary product of the orchard, with cider sales and picking fees accounting for a small part of annual profits. At the end of each picking season, before moving on to other jobs in the south, following an age-old custom the Jamaicans slaughter a goat in celebration. Though the practice is commonplace in their homeland, certain animal rights advocates in the community surrounding Monarch Orchards hold that this ritual slaughtering should be considered cruelty to animals. We will write a custom essay sample on Monarch Apple Orchard or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Each year their pressure has grown to ban the practice. The group is currently rallying support to boycott all Monarch Orchards products until the sacrifices stop. The Jamaican workers have informally communicated through their supervisor that if they are not allowed to have their goat celebration, they will not return to Monarch for next year’s picking season. Taken by surprise, the orchard owners are trying to decide what to do next. The principal owner said it boils down to letting them continue the celebration and try to weather the boycott, or forcing them to stop the celebration and watch the crops rot on the trees. How would you recommend the orchard owners precede? The owners should put in place a contingency plan which may include: * Working with other apple orchard owners to create a mutual apple picking agreement to be activated in times of emergency such as weather related events, manpower shortage etc. This would allow for other orchards to lend a hand by loaning equipment or labor to bring in the apples at a reasonabl e price. * Create a plan to make up for the shortfall of legacy apple picking knowledge, map out all the apple trees row by row. Layout blueprints for the most efficient routes for the pickers to travel provide listings of all types of apples – Honey Crisp, Mackintosh, and Fuji, Gala etc. with best estimates of when the apples will be ripe and ready to be picked. * Begin immediate meetings with the apple pickers to inform them that the long range plan of the orchard doesn’t allow for the slaughtering of the goat on Orchard property, what occurs off the property is the sole business of the apple pickers. Begin immediate meetings with the animal cruelty officials to let them know that the primary objective of the Orchard is to produce apples and not police the welfare of animals. With that said I would make it known that going forward (not current year) that there will be no sacrifice of a goat on Orchard property, but would reiterate that the plan is for future years and not the current year. The Orchard would donate a monetary sum the charity of the protestor’s choice to help ease the tens ions of the past and current year. Who loses out or may perceive they lose out in your recommended solution? Going forward the Goat will not be sacrificed on Orchard property and not in the name of the Orchard the apple pickers will have to find another location or event to do this at. The protestors win the battle but lose the war as the goat will probably be sacrificed anyhow. I see the entity having lost the most is the apple orchard, one group will be disenfranchised at the expense of the other, and in the meantime the orchard will have spent countless hours in time, dollars and avoiding bad publicity. How can you reduce their sense of loss? The protestors having lost the battle have a good news story to tell, I would instill that they successfully changed methods, procedures and values at the Orchard, allow them to inspect the Orchard and a monetary donation always helps.

Research Paper Topics on Labor Unions

Research Paper Topics on Labor UnionsIf you are writing a paper on research paper topics on labor unions, you should take some time to understand the nature of unions. It is important to get a good understanding of unions so that you can write your paper in an accurate manner.There are two fundamental aspects to understand about unions. The first is how unions function and the second is what they do to organize and publicize their campaigns. Understanding these aspects will help you write a more clear and accurate research paper on labor unions.The first aspect to understand is the way in which unions function. In an organization there are different levels of union rank and file. At the lower levels you have the locals, then you have the regional leaders, who in turn form the International Association of Local, Regional and District Unions, or the IALUE. At the regional level, there are leaders who then constitute the national union.At the national level, the national union has many leaders and local and regional union leaders. However, there are also other leaders in unions in other countries. These leaders are part of the International Union of Operating Engineers (IUE) that is affiliated with the United Steelworkers or the AFL-CIO.The second aspect to understand is what unions do to bring together labor, management and clientele. During meetings, they may discuss and try to bring together unions, management and clients to come up with joint proposals and agreements.Another thing that a union leader does is to develop plans for activities. For example, some unions will organize joint vacations and outings so that all sides can get out of the office and meet and mingle.Finally, the third aspect to understand about labor unions is what happens when they are at war with management. They develop strategies to fight and win.The aspects mentioned above can help you to understand how labor unions work. So, as you write your research paper on labor unions, take some time to understand their functions. This will allow you to come up with a clear and accurate conclusion.

Bmw Drives Germany Essay Example

Bmw Drives Germany Essay International Business BMW Drives Germany By Peter Gumbel Assignment by Matthew Jackson Table of Contents: Page 1. Assignment Cover Sheet3 2. Question Summary4 3. Question 15 8 4. Question 2 9 10 5. Question 3 3. 111 13 3. 214 16 6. Question 417 19 7. Bibliography20 – 23 8. Appendix A24 9. Appendix B25 Surname:Jackson First Names:Matthew William Student Number:102531 Subject:International Business Assignment Number:One Date Submitted:2008. 06. 12 Submission:Second Postal Address:PO Box 704 Shelly Beach 4265 E-mail:matthew. [emailprotected] co. za Contact Numbers:W039 315 0151 H039 312 0055 Cell0832834460 Course/Intake:MBA Year Two – January 2008 I hereby declare that the assignment submitted is an original piece of work produced by myself. Matthew Jackson 75122350090882008. 06. 12 Question Summary Sheet 1. Evaluate the shift in BMW Germany’s attitude and policies toward FDI. Discuss using relevant theory what you have identified as being the driving force behind this change in attitude and policy. 2. Explain the benefits to the German economy in BMW’s decision to maintain and improve its manufacturing operations in Germany. 3. If BMW wanted to extend its manufacturing operation into a developing Southern African country, explain what your recommendations would be to their CEO with regard to: 3. 1: Factors to consider prior to the formulation of a global strategy? E. g. Culture, Negotiation, etc. 3. 2: The strategy that BMW should utilize. Justify 4. Analyze the Global Competitive environment in which BMW operates and rank their position in the industry. Question 1: Evaluate the shift in BMW Germany’s attitude and policies toward FDI. Discuss using relevant theory what you have identified as being the driving force behind this change in attitude and policy. We will write a custom essay sample on Bmw Drives Germany specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Bmw Drives Germany specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Bmw Drives Germany specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Introduction The Policy towards FDI mentioned at the start of the article by Gumbel (2007) was heavily influenced by the local economic conditions in Germany at the time. Exorbitant labour costs, unbending union rules and Administrative Policies all influenced BMW to investigate solutions for their local economic stagnation from mostly Oligopoly conditions of most companies in the saturated European Market. BMW had to find solutions elsewhere. Theory and analysis Duthmann et al. (2006) reports that Labour costs are traditionally expensive in Germany. This view is supported by data from Appendix A. It was compounded by the re-unification of East Germany and the Government needed to find a solution for Unemployment. BMW used the strategic advantage that these unemployed East German Automotive workers at Leipzig were providing, while helping government lower unemployment through FDI. Lowering that aspect of the inputs to the value chain had injected profit to BMW’s earnings. The Leontief Paradox states that countries that are abundant in capital should be exporters of capital intensive goods, and import labour intensive goods. These imports did not relieve the strain on domestic labour intensive industries. The Leontief Paradox disputes the Heckscher-Olin theory on the point that Factor endowments can be impacted by Government Policy. BMW is a good example proving that this paradox exists. Government intervention into labour rights, the shortened work week and East German re-unification problems caused excessive pressures on high labour costs. This directly caused BMW to shift their focus on investment elsewhere, to achieve cost reduction. The Benefits that Germany enjoyed from allowing BMW to pursue their FDI efforts are related to their resource transfer effect, their employment effect, their balance of payments effect and their effect on competition and economic growth. Specific parts for the leather seats and cockpits of BMW’s are manufactured by Fauracia. The natural resource leather is of better quality. The parts do not have to be trucked in as finished parts, thus incurring transportation costs, customs and import duties, and can be assembled on-site, providing immediate service support if needed. All these resources are transferred from elsewhere and do not need to be consumed and provided by Germany. Allowing FDI from Daimler-Chrysler and Fauracia allows technical resources to lower the intellectual capital drain needed in Germany, and this resource can be better utilized in other sectors. Costs involved in Research and Development of individual parts needed in assembly then stays with the host nation and not Germany, and lowers costs for BMW. FDI effect on competition and economic growth in Germany relates to the Competition created by the rivalry between Daimler-Chrysler and BMW. This especially affects service industries such as Management and these services have to be delivered in Germany where the cars are produced. Radosevic and Rozeik (2005) reports on the Cluster in the Central European Economy, and the clustering of supplier networks. BMW made the same decision regarding the supply of some of their parts to reduce costs. Hill (2007) discusses Porters â€Å"Diamond Model† for the determinants of National Competitive Advantage. He is of the opinion that Governments influence the four determinants. To evaluate whether Germany’s attitudes and policies towards FDI where effective, we need to investigate the effects the FDI decision had on factors of production, such as skilled labour and infrastructure, on demand conditions (sophisticated customers in home market), related and supporting industries, and firm strategy, structure and rivalry (conditions for organization of companies, and the nature of domestic rivalry) Factor conditions were influenced in Germany at that time through their policies towards capital markets. The Business Times(2008) reports that Germany has the most transparent banking System in Europe and is of the opinion that their high personal income tax rate will cause money to ultimately flow to Southeast Asia or Central America if they do not change it soon. Gumbel (2007) also states that the skepticism of Anglo-Saxon capital finance hampers the capital market even though Germany is supposed to draw advantage from the unified European economy. Although hedge funds exist to help subsidize growth within the European Union (EU), Germany wants to curb their power so that individual local economies within the EU may be stimulated. Germany has themselves provided money through the private sector, even though the unification with East Germany took a lot of investment to develop again. This decision can thus be evaluated as a good stimulant for domestic macro-economic growth. Porter (1980) note that local government usually shape local demand conditions in more subtle ways. Local Product Standards have always been high in Germany, and regulations for buyers needs are strictly controlled. The shift towards FDI will fit in with this advantage. Gumbel (2007) alludes to the fact that Germany has always invested heavily in their Automotive Industry through subsidizing related and supporting industries via their traditional engineering prowess. BMW moved Faurecia, the company that builds their seats and cockpits, on site to create a backwards Vertical FDI. This accelerates the shared value chain activities, and co-ordinates supportive industries. The cutting of Transportation costs by moving Faurecia on site allowed the special conditions created by mass customization to be solved even though the cockpits assembled generally have a high value to weight ratio. BMW organized their firm structure as Porter’s Diamond Model suggested they should through using management structures that are technically trained and allows for hierarchical methodical product and process improvements. This can be seen in their Mass Customization program that has bee the life line of their current success. The Domestic Rivalry between BMW and Daimler-Chrysler Mercedes-Benz has also traditionally been responsible for the continual product innovation at BMW. This resulted in the drive to reduce input costs to the Value Chain and improve quality of their product through automation and use of robotics. FDI was one of the sources BMW identified that provides innovation, lower costs and better quality. It is also the collusion with Daimler-Chrysler to develop new hybrid engines that gives them new technology. This can only be beneficial to both companies through the use of FDI. Discussion FDI was a good solution to take advantage of factor conditions such as great technical resources, already existing Research and Development infrastructure, Germany’s good banking system, and strong local capital investment policies, the unified Euro. Demand conditions such as High local quality in product standards, the technically trained management firm structures inherent in most German organizations, and the longstanding domestic rivalry with Daimler-Chrysler Mercedes, have all created and environment where FDI became the logical solution to the challenges they faced. The Macro-economic consequence of the Foreign Direct Investment allowed Germany to lower unemployment without allocating part of the Gross Domestic Product to improve it. FDI created jobs specifically for the unemployed East German automotive industry workers in Leipzig. The Balance of payments effect allowed Germany to have a growth rate of 2. 8% last year. This allowed net exports of $200 Billion, of which BMW showed on their own balance statement healthy revenue of $65 Billion. This was achieved by establishing FDI to be a substitute for imports of goods or services and thus on a continual basis will improve the current account of Germany. Conclusion The close relationship of Porter’s Model of determinants of comparative advantage to the FDI decision was discussed. This showed the accuracy of FDI in providing a head-start in the Market. When the positive effects of BMW’s FDI decision is measured against the macro-economic benefits it provided, it must be evaluated that it was a correct decision. Question 2: Explain the benefits to the German economy in BMW’s decision to maintain and improve its manufacturing operations in Germany. Introduction Amdam, Lunnan and Ramanauskas (2007) has the opinion that strong domestic customer relations demanding change, or strong innovative domestic competitors are more forceful change agents than those that are located in other countries. Maintaining and improving the manufacturing operations in Germany may also have to do with the competitive presence of competitors like Daimler-Chrysler. The benefits to BMW to concentrate manufacturing operations or decentralize will be discussed. Hill (2007) discusses that concentration of production makes sense when trade barriers are low, differences between countries in factor costs, political economy, and culture have a substantial impact on the costs of manufacturing in various countries, externalities arising from the concentration of like enterprises favour certain locations, important exchange rates are expected to stay relatively stable, the production technology has high fixed costs and high minimum efficient scale relative to global demand, or flexible manufacturing technology exists, production value-to-weight ratio is high and the product serves universal needs. Alternatively, decentralization of production takes place when differences between countries in factor costs, political economy, and culture do not have a substantial impact on the costs of manufacturing in various countries, trade barriers are high, location externalities are not important, volatility in importantant exchange rates is expected, the production technology has low fixed costs and low minimum efficient scale, and flexible manufacturing technology is not available, the products value-to-weight ratio is low and the product does not serve universal needs. BMW would concentrate production, since the factor cost of Oil, Electricity and Minerals for automotive production is easily influenced by political decisions. The concentration of automotive manufacturing in Germany, and the high fixed costs, the high value-to-weight ratio and the product serves universal needs. There are certain factors which make the case for decentralization. Trade barriers are generally high with automotive manufacturing, since entry to the market is restricted by technological barriers, high start-up and input costs and the volatility of important exchange rates, specifically the Brent Crude Oil Price is expected. There are therefore more benefits to concentrating, rather than decentralizing. Hill (2007) states that reducing economic exposure requires strategic choices that goes beyond the realm of financial management. The key to reducing economic exposure is to distribute the firm’s productive assets to various locations so the Firms long term financial well-being is not severely affected by changes in exchange rates. This point towards decentralization, but since the Euro is a strong currency, it is hedged against volatility more than the benefit of lowering foreign exchange risk. This may be because most Factors of Production, and the other determinants of Porter’s Diamond Model, already exist in the robust German Domestic Economy. This also explains why there is no drive to move productive assets elsewhere. Dunning’s Eclectic Approach demands that Ownership advantage needs to be backed up by Locational Advantages from factor endowments. BMW may feel that those markets can still be served with exports. This is consistent with the economic theory of positive income elasticity for luxury products. Porter’s Diamond Model also confirms the benefits of local demand conditions, the importance of related and supporting industries, and the domestic rivalry with Daimler-Chrysler. Conclusion It benefits BMW’s research and Development from the stimulation of technological advancement from domestic rivalry. The streamlining of value chain activities through keeping Just-in-time production as fast as possible, it offsets the delays possibly caused by mass customization. Keegan (1999) as quoted in Hill (2007) state that by reinforcing positive determinants of competitive advantage in an industry, government can improve the Competitive position of a nations firms. This does not have a negative effect on the balance of payments for Germany and actually helps the GDP grow by lowering unemployment and increasing exports. If BMW wanted to extend its manufacturing operation into a developing Southern African country, explain what your recommendations would be to their CEO with regard to: Question 3. 1: Factors to consider prior to the ormulation of a global strategy? E. g. Culture, Negotiation, etc. Introduction Ling and Miller (2003) states that when individuals conduct business across national borders, they often bring to the negotiation table diverse cultural predispositions in which they interact with another. For BMW to successfully negotiate extending its manufacturing operations, it needs to understand the South African culture of Ubuntu. Hill (2007 ) suggested that there is a checklist of various cultural dimensions that can provide a cultural review prior to entering into Foreign Direct Investments. These are Nature(control, harmony and subjugation), Time(monochronic or polychronic), time(past, present or future), Action(doing or being), Communication(low or high context), Space(private or Public), Power(equality or Heirarchy), individualism or collectivism, competitiveness or co-operation, structure(high or low) and Formality(formal and informal). We will discuss the application of each of these to South Africa. Discussion The traditional African culture puts high value on Nature, and that we need to care for our environment. Africans believe that we are subjugate to the fate of nature and we are only part of it. BMW instituted stringent emission limitations on their products since the Kyoto protocol, at the World Summit in Johannesburg, South Africa in 2002. They also built the Earth Lounge in Sandton, South Africa to display the contribution they make to sustainable development. Africans believe that activity supercedes time, which is polychromic, propicious, circular and that human beings are more important than time itself. Tradition from the past, is very important to an African, and it is more important than the immediate conditions of the present or the progress of the Future. Being a good person in the community is much more important to African people than doing things. This extends to treat even strangers as extended family, thus one’s child is the community’s child. Africans are direct in their communication, since they live in community they do not place higher value on the individuals words and manner than the collective. The only cultural body language that is significant in this context is the custom for a visitor to sit down before ant communication even takes place. Hurn (2007) advises that the pace of negotiations needs to be slow when done in low context though, and directness is essential, since Ubuntu sees not coming to the point as dishonesty. Public space is allocated before private space, and Ubuntu demands that there is minimal private space, and all resources should be shared. Equality is very important to Ubuntu, since all are equal. The only hierarchy exists amongst those who allocate resources to the collective, like traditional chieftains, or political representitives. Not co-operating with the needs of the whole community, sharing its resources in the Zulu culture traditionally led to death for the individual. Informal relationships and social structures prevail in Ubuntu, since being formal is a sign of rejection of the community and its values. Building social relationships, sharing in the customs of the local tribes or giving of gifts to the community shows this support. Evidence of using this cultural experience can already be seen in the BMW SEED Programme that was initiated in 1996. It is aimed at awakening in our youngsters an interest in the environment by sponsoring planting seeds, and supports outcome based education, augments feeding schemes, develop entrepreneurial skills amongst learners and create environmental awareness through behavioural change. Rodrigues (2001) is of the opinion that decision making in the African Culture is by consensus, and this process is circular providing feedback to ensure better decisions made for all in the future. This view is supported by Tay (2007) who believes that this has been the key factor amongst the Japanese automotive industry’s success Conclusion Pursuing a global strategy for BMW to extend their manufacturing operation to South Africa, must include sensitivity to reaping cost reductions from experience curve effects and location economies. This exploitation can only occur in the Ubuntu context, if the company has done all it could to be seen as part of the community, or providing resources to the community’s needs. Negotiation for BMW would thus need to include a proper needs analysis of the local community, an accurate transaction cost analysis including the non material benefits proposed to be provided, like education, providing housing and food. Question 3. 2: The strategy that BMW should utilize. Justify Introduction Hill (2003) discusses the four basic strategies to enter and compete in the international environment. They are an international Strategy, a multi-domestic strategy, a global strategy and a transnational strategy. The mode of entry into this market must include alleviating pressures for cost reduction, and transferring of Management and Technical know-how. We will discuss how the transnational model and wholly owned subsidiary as entry mode is the best strategy. Discussion BMW cannot pursue a multi-domestic strategy, since it cannot without high costs replicate their entire value chain. Strong local autonomy would make them lose control over the benchmark of quality that has become their brand identity. The weakness from a pure global strategy is that BMW will lose the ability to customize their products. This mass customization as reported by Gumbel (2007) was the very reason for their profits in recent years. Cost reductions from the underlying experience curve also causes economies of scale in the international strategy. Previously the attempt to transfer innovation is a good strategy for any multinational company investing in a developing country. BMW traditionally has followed this strategy, where the Head Office in Munich controls Research and Development, technology, processes and marketing. Marketing Functions and manufacturing plants can under this strategy be set up in major business countries. Gumbel (2007) reports that the shift away from Germany as a head Office towards a true Transnational strategy. Research and Development are now partnered with Daimler-Chrysler and Peugeot in developing new engines outside of Germany. A transnational strategy would allow for the following advantages: It exploits the experience curve effects BMW has built up over years of technological innovation. Location economies now allow BMW to cut high labour costs, and the cost of steel. BMW should use their FDI to utilize the abundance of cheap labour conditions. They could negotiate with the South African Government to help lower unemployment, improve education skills through apprenticeships. Jenkins and Thomas (2002) reports that in manufacturing, rising capital intensity and improved productivity may limit the benefits of FDI in terms of ongoing job creation in South Africa. It is therefore essential that BMW provides ongoing job creation as a guarantee when negotiating with South Africa for FDI. The Budget of 2008 has made several tax concessions around the skills levies imposed on the South African Tax Payer. BMW should take strategic advantage of these conditions. The benefits of FDI for a country like South Africa are seen as flowing mainly from externalities generated by technology transfer They should use the supply side support measures mentioned by Streak and Dinkelman (2000) to lower their supply chain input costs. BMW should invest in local infrastructure fro Manufacturing processes, because it combines both the lower labour costs and lower input resources required. It will also be lucrative for South Africa, since the FDI now allows exports from South Africa, adding to the health of the domestic economies balance of payments. The strategy BMW should follow must include a proper analysis of both their internal strengths and weaknesses. Weirich (1999) proposed the use of the TOWS (Threats, Opportunities, Weaknesses, Strengths) Matrix to analyze the Competitive Advantages and Disadvantages of Germany. The TOWS analysis for BMW allows four strategies to emerge. When we use Weirich’s opinion that The Strengths-Opportunities Strategy would play to the Culture of quality, we can justify why BMW used its skilled intellectual capital, its superior technological innovation, engineering machinery, chemicals and managerial practices. BMW must then analyze whether there exists an Opportunity in South Africa for these strengths. The Strengths -Threats Strategy would assume that they need to consider FDI as a means to capture more of an Emerging Expanding Market share in South Africa. BMW needs to look at the health of the automotive retail sector as well as the industrial manufacturing sectors. The Automotive Sector in South Africa is very healthy, as seen in the Local Manufacturing plants for Volkswagen and Toyota already in South Africa. The Weaknesses-Opportunities Strategy would use cheaper labour costs to overcome rising domestic competition from Labour Unions in mature contracting Economies. Kamoche (2002) reports the success of multinationals in the past to leverage low labour in South Africa. Machaka and Roberts (2003) also confirm that spiralling supply input costs like steel and other natural resources are also cheaper in South Africa. Weakness-Threats Strategy would only apply to countries that are a threat from their strong economic market share. Experiencing difficulties in exporting arising from an expensive product and strong currencies in their home country would scare off BMW. They would look for a stable political environment, a growing economy and a stable currency. Conclusion From this analysis the best fitting strategy that would fit BMW to adopt regarding Developing Economies, is the Weakness-Opportunities. BMW is a large multi-national company looking to find new markets in which to sell not only their product, but sell their expertise. BMW should us the abundance of natural cheap resources like steel, available in South Africa. This view is supported by Matjekana (2002). Matjekana (2002) also suggests that it is unusual that South Africa did not attract more FDI in their labour market. Using this opportunity as a value chain activity will increase profits. Matjekana(2002) is of the opinion though, that the reason for this paradox (that can be seen as a reversed Leontif paradox? is related to the South African Governments inability to get crime under control. BMW should use the Transnational strategy for moving their manufacturing plant to South Africa. BMW can exploit their experience curve effects in South Africa, importing technical resources; they can exploit location cost economies like cheap steel and labour. BMW can customize local product offerings better, since the costs incur red to do this is less in South Africa. In the South African Context it may make more sense to leverage their valuable skills this way as a commodity than pursuing a Global Strategy. A Global strategy has a lack of local responsiveness, and the market for Luxury Vehicles in African economies is small compared to developed nations. This lack of providing product customization is not a huge consideration therefore in South Africa. BMW should use South Africa as a doorway into the Market for both the rest of Africa, and a cost cutting distribution Centre to Australasia. They should use the wholly owned subsidiary model in which they can transfer their transient technology advantage, while it is structured to reduce risk of loss of technology. Question 4: Analyze the Global Competitive environment in which BMW operates and rank their position in the industry. The five competitive forces model was developed in 1980 by Michael E. Porter. The five competitive forces Porter (1980) proposed in his model have an effect on the car manufacturer BMW. Based on this analysis, the force with the most impact on the company will be identified. Based We will examine how BMW uses information systems to offset the most competitive of these forces. Porter (1980) suggests that competition in an industry is rooted in its underlying economic structure. The stage of competition depends upon five basic competitive forces, which determine the degree of competition and the profit potential in an industry. The five forces are (a) intensity of competitors, (b) power of suppliers, (c) power of customers, (d) threat of new entrants and (e) threat of substitute products (Porter, 1980). (a) Intensity of competitors BMW, which stands for Bayerische Motoren Werke, has made a well-known name as a luxury car manufacturer (Bernhardt Kinnear, 1994). The headquarters of the BMW group is in Munich, Germany, but the company has global reach. The company built high brand equity over the years through continuous branding efforts and high quality products. Kiley (2004) states† BMW is arguably the most admired carmaker in the world and BMW products inspire near- fanatical loyalty†. Within the luxury car manufacturing direct industry competition is fierce. U. S. manufacturers produce cars like Cadillac, Lincoln, Buick and Chrysler that look comfortable and visually stylish. European manufacturers like BMW, Mercedes Benz, Audi and Jaguar focus on customers that want the communication with the road via steering nd suspension systems (Bernhardt Kinnear, 1994) by producing functionally superior cars. The luxury car segment of the automobile market is at the maturity stage of the life cycle, locally and globally, due to an increased number of competitors from domestic and foreign markets. The automobile market is characterized by a low potential for market growth, but high sales and profit potential (Murtagh, 2004). T here are traditionally high entry barriers in this market and products are usually differentiated. Competitive forces are high in each segment of the overall market. BMW belong to the strategic group of luxury functional cars. This segment is categorized by low product diversification but a relatively high geographical scope (Murtagh, 2003). It is also a differentiated oligopoly. An oligopoly consists of a few companies with an unspecified number of buyers. The action of each company in this oligopoly affects the other manufacturers in the market and thus invokes reaction of manufacturers to one another. The objective of companies in an oligopoly is to maximize the present value of profit (Bernhardt Kinnear, 1994). BMW differs in the features, styles, quality, innovation, technology, design, appearance and services they aim to provide. BMW can also gain a competitive advantage to its U. S. competitors through exchange rates when the dollar is strong (Bernhardt Kinnear, 1994). (b)Power of Suppliers The roles and responsibilities of suppliers in the automobile industry have changed because the industry structure has merged. High switching costs and dependency give automotive suppliers high amounts of economic monopoly. High quality and high service levels towards BMW customers, from the consistent high quality, co-operating, high competency, just-in-time and reliability of suppliers. (c) Power of customers Customers, who buy, have major influence on the decisions of companies in an oligopolistic market structure. Porter (1980) explains that buyers force down prices, bargaining for higher quality or more services, and playing competitors against each other at the expense of industry to make profit. BMW’s positive brand image distinguished itself through its point-of-difference. The outcome is that BMW customers are loyal towards the brand. As a result, many competitors of BMW have to face falling sales and market share, while demand for BMW products continues to grow (Kiley, 2004). (d) Threat of New Entrants New entrants are essential for an industry to stay competitive (Porter, 1980). Their absence removes the drive to gain market share and profit. The Global Automotive Industry is an Oligopoly, and any new entrants make commanding profit and controlling price more challenging. BMW takes advantage of economies of scale, one of the major aspects of barriers to entry (Porter, 1980) because its unit costs decrease significantly with quantity increases. Capital requirements are probably the most significant barrier to entry because the production of cars requires immense financial resources. Research and Development, further facilities abroad for global operating scale, brand switching costs, Government Regulations in technology and environmental pollution influence entry barriers as well. (e) Threat of Substitutes Low End Cars, Motorcycles, bicycles and usage public transportation are limited, which results in low pressure on manufacturers (Porter, 1980). Substitutes limit the potential returns of an industry by placing a ceiling on the prices firms in the industry can profitably charge. The Power of Customers impacts mostly on BMW, because they increase competitors and product variety. Customers are the most important part for the success of BMW. As Gumbel (2007) reports the mass customization system BMW developed for catering for the specific tastes of individual customers, fills this need. A comprehensive passive safety system information system innovation by BMW called the Intelligent Safety and Information System (ISIS) was developed. BMW also use a dealer communication system that enhances the manufacturer-dealer relationship and effectiveness Conclusion: The BBC from their website and Data in Appendix B we can see that various sources rank BMW in second place in the Luxury Automotive Manufacturing industry, as a company. This is not reflected from the number if units sold, but rather in the Consumer Faults per 100 cars index, as well as the global index for most efficient organizational indexes. Daimler-Chrysler does not allow the empowerment of customers to express their individuality to the extent of making their vehicles more customizable, but they rank as a better managed enterprise. Bibliography: Admam, R. P. , Lunnan, R. and Ramanauskas, G. 2007) FDI and the Transformation from Industry to Service Society in Emerging Economies: A Lithuanian – Nordic Perspective. Engineering Economics 51(1), pp. 22 – 28. Agiomirgianakis, G. , Asteriou, D. and Papathoma, K. (2006) The Determinants of Foreign Direct Investment: A Panel Data Study for the OECD Countries. London: City University Department of Economics, School of Socia l Sciences. [Author unknown] (2008) Tax haven says Germany is being a bully. Business Times, Durban, 2 March, p. 24. [Author unknown] (2007) NAAMSA Annual Report[online]. National Association of Automotive Manufacturers of South Africa. vailable from http://www. naamsa. co. za/papers/ [Accessed 17 June 2008] BBC News. (2000, May 12). Analysis: Europe’s car industry[online]. available from http://news. bbc. co. uk/1/hi/business/746306. stm. [Accessed February 26, 2004]. Bernhardt, K. Kinnear T. (1994). Case studies in marketing management[online]. New York: Irwin. BMW Corporation (2004), Available from http://www. bmwusa. com/Joy/Drive/Technology/ISIS. htm. [Accessed February 26, 2004] Chesami, B. E. (2005) The Role of Government in the attraction of Foreign Direct Investment: a Case Study of South Africa and Cameroon[online]. Research Paper for Master of Law: University of Western Cape available at http://etd. uwc. ac. za/usrfiles/modules/etd/docs/etd_init_6925_1174555571. pdf [Retrieved February 26, 2004] Duthmann, A. , Hohlfeld, P. , Horn, G. , Logeay, C. , Rietzler, K. , Stephan, S. and Zwiener, R. (2006) Arbeitskosten in Deutschland bisher uberschatzt – Auswertung der neuen Eurostat-Statistik. pdf, IMK Report(11). Hoover’s Online. (2004) Bayerische Motoren Werke AG Factsheet[online]. Available from http://www. hoovers. com/bmw/ID__41758/free-co-factsheet. xhtml. [accessed February 26, 2004] Hurn, B. J. 2007) The Influence of Culture on International Business Negotiations. Industrial and Commercial Training 39(7), pp. 354 – 360. Javorcik, B. S. (2004) Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages. The American Economic Review 94(3), pp. 605- 627. Joubert, B. Summary of Tax issues in the 2008 National Bu dget Speech[online]. Deloitte Touche Tohmatsu Group Director. Johannesburg. Available as a pdf at http://www. Deliotte. co. za/za_tax_Billyspresentation_220208. ppt [retrieved 13 March 2008] Kamoche, K. 2002) Introduction: human resource management in Africa. The International Journal of Human Resource Management 13(7) pp. 993 – 997. Kiley, D. (2004). Driven Inside BMW, the Most Admired Car Company in the World[online]. Retrieved February 18, 2004. Available from http://www. wileyeurope. com/WileyCDA/WileyTitle/productCd-0471269204. html [Accessed 24 February 2008] Lin, X. and Miller, S. J. (2003) Negotiation approaches: direct and indirect effect of national culture. International Marketing Review 20(3), pp. 286 – 303. Matjekana, K. S. M. (2002) Foreign direct investment flows to the SADC region n a globalizing economic environment. MA Dissertation. Stellenbosch: Faculty of Arts, University of Stellenbosch. Machaka, J. and Roberts, S. (2003) The DTI’s New Integ rated Manufacturing Strategy? The South African Journal of Economics 71(4), pp. 679-704. Murtagh, P. Dr. (2004). Industrial Structures and Competition[online]. Available from http://www. shef. ac. uk/~mcn/6050/lectures/6050_lec04_industrial_structures. pdf [Retrieved February 23, 2004] Nunnenkamp, P. (2002) Determinants of FDI in Developing Countries: Has Globalization Changed the Rules of the Game? Working Paper. Kiel: Kiel Institute for World Economics. Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press. Radosevic, S. and Rozeik, A. (2005) Foreign Direct Investment and Reconstructuring in the Automotive Industry in Central and East Europe. Working Paper. London: School of Slavonic and East European Studies. Robinson, C. G. (1986) Strategic Management Techniques. 1st Edition. Durban: Butterworths. pp. 156 – 158, 178, 179. Rodrigues, C. (2001) International Management: A Cultural Approach. nd Edition, Cincinnati, Ohio: South-Western College Publishing, Thomson Learning Sharma, B. and Abekah, J (2008) Foreign Direct Investment and Economic Growth of Africa. Atlantic Economic Journal 36(12), pp. 117 – 118. Straub, D. (2004). Industry Analysis of NE firms[online]. Available from http://www. cis. gsu. edu/~dstraub/Present/GEM8800/2002/4indus6. pdf [Retrieved February 24, 2004] Streak, J. and Dinkelman, T. (2000) The Empirical Evidence on the Location Determinants of FDI and South Africa’s Industrial Development Strategy. Transformation 41, pp. 1 – 31. Thompson, A. A and Strickland A. J (1987) 4th Edition. Texas: Business Publications Inc. pp. 129 – 133, 168. Tay, H. K. (2007) Rethink competition in the world auto market: cultural determinants, strategic implications and game rules. Strategy and Leadership 35(4), pp. 31 – 37. Appendix A: Hourly labour costs in 14 EU Member States, 2004 (in â‚ ¬) The table ranks 14 EU Member States according to hourly labour costs in the manufacturing and services sectors separately and for the combined total, 2004 (in â‚ ¬). Total (â‚ ¬) Manufacturing (â‚ ¬) Services (â‚ ¬) Denmark30. 70Belgium33. 10Denmark31. 30 Sweden30. 40Germany29. 90Luxembourg31. 30 Belgium30. 00Denmark29. 90Sweden30. 90 Luxembourg28. 30Sweden29. 60France30. 90 France28. 20Netherlands28. 90Belgium30. 60 Netherlands22. 40Finland28. 80Finland27. 20 Finland26. 80France27. 60Netherlands26. 50 Germany26. 20Austria26. 60UK24. 50 Austria25. 30Luxembourg25. 80Germany24. 10 UK24. 70UK24. 70Austria23. 80 Italy21. 40Italy20. 60Spain14. 30 Spain14. 80Spain16. 30Greece13. 70 Greece13. 40Greece12. 70Portugal10. 80 Portugal9. 60Portugal8. 30ItalyNo data EU1524. 00EU1525. 00EU1524. 20 Note: Data on Sweden and Greece refer to 2003; no data available for Ireland. Source: IMK Report, 2006 Appendix B

Some Common Writing Assignment Advice for Argument Essays

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