Web Server Attacks

Web Server Attacks Aaron G. Flaugh Strayer University Dr. Patricia White April 15, 2013 Web services are the most frequently attacked services of the modern network. There are three common attack types. They are all mitigated in different ways, this paper will discuss the means of protecting against them. The most effective attacks are call Denial of Services or DoS attacks. No organization is save from a denial of service attack even the federal government has been successfully attacked. How corporations can reduce the risk of these attacks will also be discussed.Web Application Vulnerabilities Web services have become one of the most frequently used technologies in business today, therefore it is no surprise, which are among the most frequently targeted applications. There are five common types of attacks for web services: SQL injection, remote file inclusion, local file inclusion, directory traversal and cross site scripting. Those were just the technical type attacks there are al so two other business layer attacks, they are email extraction and comment spamming.According to a survey group iMPERVA; cross-site scripting (XSS) accounts for twenty-nine percent of sampled attacks, directory transversal (DT) accounted for twenty-two percent, local file inclusion was fifteen percent of the attacks, SQL injections were fourteen percent of the malicious traffic, business logic attacks accounted for another fourteen percent and finally remote file inclusion only accounted for six percent of the traffic. The business logic attacks were split as follows email extraction was nine percent and comments spamming accounted for five percent of the section. Cross-Site ScriptingIn this attack type the attacker attempts to hijack a user session then steal the information that they need to log on to the site. Sometimes they hijacker inserts hostile content or redirect the user to a malicious site to steal information. The final flaw that is used is not properly validating and es caping that content. Directory Traversal Directory traversal is attacking parts of a web site that are not typically exposed to the public viewers. This an exploit of the security of the web server. It is also possible to use this attack by not properly removing user-supplied file names to the file API’s.SQL Injection Attacks against the background database server is called SQL injection attacks. Using this type of attack the attacker is able to steal the data contained on the page or site. This attack is most viable when user input is either incorrectly filtered for escaped characters in the SQL statements or the user input is not typed appropriately. Combating Web Server Attacks There are several things that users can do to protect themselves from web server attacks. First they can patch their operating systems up-to-date. Second, install a personal firewall, anti-virus and anti-malware tools.Use complex usernames and passwords, and change passwords regularly. Finally, turn off client-side scripting such as JavaScript or ActiveX. On the web server side, there are some suggested fixes. First of all implement SSL connections however, it used to be that 128-bit encryptions was sufficient according to Saumil Shah from Net Square. Now it is not uncommon to utilize 1024-bit RSA encryption on SSL certificates. Second, run a best practices analyzer or threat analyzer and implement security fixes. Another, security method to protect internal resources through the use of reverse proxy servers.The final solution to these web attacks is the human element, verify code written by developers and correct any errors discovered. Denial of Service Attacks The most feared attacks on a network is denial of service attack or a distributed denial of service attack. In both attacks the objective is very simple as the name implies it is to disrupt the flow of information into a network, generally the objective is not to steal data or release confidential information. Denial o f service attacks are performed usually by a single attack thus, are much easier to defend against.Distributed denial of service attacks are much more difficult to detect and thus much more difficult to defend against. They are generally coordinated amongst many individuals or through automation using botnet malware. Defending and halting denial of service type attacks can be very easy to stop since they are from one threat. The first defense against this type of attack is the use of access control lists on either the firewall or on the border router. Cisco uses the following syntax in its IOS enabled devices: permit tcp eq .Within Cisco’s firewall products the PIX or the current Adaptive Security Appliance (ASA) the syntax is similar to that of the IOS devices. Cisco’s ASA platform has a much more diverse set of features to block attacks at the border of the network. The ASA con also be configured to detect and block ICMP flood attacks. The more sophisticated web se rvers can be configured the block http attacks. Cisco also offers products that are designed to detect and block single origin attackers. Most operating systems have firewall functions that are built into them.Third party security companies such as Symantec, Sophos, McAfee, and Zone Alarm offer personal firewalls to potentially block an incoming threat. This is the best alternative if a person or group doesn’t have control of their border devices. There are two other means by which a single attacker can be stopped. They are interrupting the communication between a hacked machine through the use null routes on a pc or device its, however this is sometimes very difficult to accomplish and only works on some Operating Systems.The final means by which to slow an attacker down is to enable web server security to block connections from the particular ip address. In a distributed denial of service attack there is generally no clear indication of which ip addresses are causing the ev ent. This make the DDoS attack extremely difficult to detect and defend against. Most the time DDoS traffic looks like ordinary network traffic, which makes detection difficult if not impossible in some cases. DDoS attack can be used against many different protocols used in network including TCP, UDP, ICMP and DNS, using flooding techniques to overwhelm a victim’s network.One of the best ways to prevent http or https flooding attacks is the incorporation of reverse proxy servers into the mix. The proxy server sits outside of the network and acts like a traffic cop in many ways. It doesn’t allow packets through that it deems at threat. It also breaks up or fragments the requests from the outside world. Department of Justice attacks Many organization has fallen victim to web server attacks. In October 2002, a DDoS attack was used to cripple the internet in the United States.This was done by simultaneously attacking eight of the thirteen root DNS servers. The Federal Gove rnment has fallen victim to DDoS a number of times, the Department of Justice has been attacked twice in the last eighteen months. In the last two notable events in January of 2012 and just this past January, the hacker group Anonymous has claim responsibility for the attacks. They were targeted in protest of the Stop Online Piracy Act and most recently in support of Aaron Swartz who had recently committed suicide.The only possible way that DDoS attacks could be carried out against the government’s servers is either enlisting thousands of people to assist by flooding the webservers with http requests or by the use of malware and the use of botnets. In either case the, it would take a lot of time to detect the attack and even more time to stop the attack. DDoS attacks on the Federal Government would need to be extremely complex and would take a long time to plan and carry out. I do not believe that they are as easy to carry out as some make it out to be.In order to mitigate at tacks in the future the Government needs to do several things. Implement reverse proxy server in front of the web servers. Make sure that all security fixes are up-to-date on all servers. Implement policies and procedures tracking changes to the web server security settings. Verify all user supplied information through the use of security images or the use of services like capture. Use of web services are common these days. Corporations, users and Government all need to take steps to protect themselves from web server attacks.This can be done in a variety of ways and is the responsibility of the information services to help management understand and prevent these attacks. References Geiger, William (2001). SANS Security Essentials GSEC Practical Assignment 1. 2f Practively Guarding Against Unknown Web Server Attacks Murphy, David (26 January, 2013). Pro-Swartz Hackers Attack U. S. Department of Justice Website retrieved from http://www. pcmag. com O’Keefe, Ed (20 January, 201 2). How was the Justice Department Website Attacked? Retrieved from: http://www. washingtonpost. com Romm, Tony (19 January, 2013).After Anonymous claims hack, DOJ site back. Retrieved from: http://www. politico. com Shah, Saumil (2002). Top Ten Web Attacks Presentation at BlackHat Asia Thatcher, Greg. How to Stop a Denial of Service Attack? Retrieved from: http://www. gregthatcher. com Weiss, Aaron 02 July, 2012). How to Prevent DoS Attacks Retrieved from: http://www. esecurityplanet. com Cisco Systems (2004). Defeating DDOS Attacks White Paper Citrix Systems Protecting Web Applications from Attack and Misuse Imperva (2012). Imperva’s Web Application Attack Report Government of Hong Kong (2008). Web Attacks and Countermeasures

Disposal of Toxic Waste

A waste is considered toxic or hazardous if it threatens the health of the people and the destruction of the environment. The waste may be in any form and may be considered toxic even upon its storage. A more distinct characteristic of a toxic waste is given by U. S. Environmental Protection Agency (EPA). These are ignitability, corrosivity, reactivity and toxicity. Ignitability is characterized by the ability of the waste to create or catch fire. Not only is the waste needed to be able to start fire, but even to just catch it and spread it that it is considered to possess this characteristic.On the other hand, it fells under corrosive if it has the capacity to cause rusting to metal substances. Usually, these wastes are categorized to acids or bases. A substance with pH level with less than or equal to 2, or greater than or equal to 12. 5 is corrosive. Substances under this category are acids or bases that have the ability to harm the environment due to its high acidic and basic pro perties. Reactivity is described as instability under â€Å"normal† conditions. This means that without any special treatment or mixture with other substance, the waste has the tendency to explode or emit hazardous cyanide or sulfide gas.The last characteristic is proven when there is fatal consequence of its ingestion or absorption. A fatal consequence may be a severe illness, discomfort or even death. Depending on this consequence, the waste can be further classified as carcinogenic, mutagenic, or teratogenic according to the EnviroFacts. If it caused the development of cancerous cells in the body of the victim, it is considered carcinogenic. On the other hand, if its ingestion results to damage in chromosome of the victim, it is considered mutagenic.Lastly, if the victim is an expectant mother and the contact with the toxic waste affected the baby even before its birth, then the waste is teratogenic. The procedure that is being used in identifying and determining the toxic ity of the substance (or what is known to as EPA) is Toxicity Characteristic Leaching Procedure (TCLP). If the toxicity of the waste affects the plants or animals, it is bioaccumulative, that is, the plants or animals which are active parts of the food chain can infect other organisms.The characteristics above need not be fully applicable to the whole material for it to be considered a toxic waste. A small presence of toxic substance in a waste is enough for the latter to be toxic. Even if it is mixture or residue, it is still considered toxic waste. Hazardous wastes are usually by-products of different industries and commercial entities. Biological processes can also create a toxic waste. Even households can be held liable for the continuous increase of toxic wastes in the world. Hospitals also have its contribution, as well as the military. As such, the U. S.Environmental Protection Agency or EPA provides a categorization of toxic wastes based from the source. Differences in sourc e gives different kinds of wastes, and hence, treatments and means of disposal. According to the EPA website, hazardous wastes may belong to the F-list, K-list or P-list and U-list. The wastes belonging to the F-list are the most common among industries especially those engaging to manufacturing. Since there are numerous of this in a state, this list is also called the non-specific source wastes. These include solvents and other substances used for cleaning or degreasing purposes.If the industry that served as source for the waste is easily identifiable such as oil company or petroleum refining company, the wastes they produce belong to the K-list or the source-specific wastes. Lastly, discarded commercial chemical products belong to the P-list and U-list. Medicines and pesticides belong to this group. Toxic substances have the capacity to contaminate air, land and water. In effect, all organisms that interact or have contact with these can also be victims of the hazardous effects t hese substances bring.As such, government agencies and different organizations designed ways for these materials to be treated and disposed. According to the EnviroFacts site, there is really no completely safe way to treat these kinds of wastes. Land disposal, incineration and chemical or biological treatment were just the safe ways to solve the problem. Land disposal means dumping the waste in a selected area called landfills. These must be far from settlers, animals or humans alike and must be permanently sealed. Seals can either be plastic or clay. A concrete wall can also be built to enclose the garbage.However, these wastes can still penetrate the ground and eventually mix with the ground water. Some substances that oxidize can also affect the air causing illness or hazard to any organism. EnviroFacts also suggest incineration. This is burning the waste in either low or high temperature. In this process, the wastes are confined and are burned. This is highly preferred for hosp ital wastes. However, large caution must be taken in using this method. Several substances may produce highly toxic gases when burnt. For instance, lead or arsenic is released in the air when old painted surfaces are burned.Chlorinated hydrocarbons on the other hand produce hydrochloric acid and dioxins. Even solid by-products of this process that are left in the incinerators must be treated as hazardous as well. Lastly, certain chemicals or bacteria are added to the waste to lessen its toxins. Bacteria are believed to â€Å"eat† the toxins in the material, making it lesser hazardous. Water is used in the United States to treat hazardous wastes. Sulfuric acid wastes, if not recycled, can be treated with ammonia wastes from the same plant, forming ammonium sulfate, a fertilizer (Encarta Encyclopedia, 2007).Another treatment for the wastes is solidification. In this process, the waste is melted and then mixed with binder for it to huge solid mass. This process is widely used fo r radioactive wastes. Specific types of wastes require specific treatment. Lack of knowledge regarding this often leads to more trouble and danger. Caroline Black and Chris Stavroudis presented several ways for treatments and disposal of certain wastes and gave precautionary measures in dealing with them. In their article Hazardous Waste Disposal, they started with the solvents.These are highly corrosive materials that may include paints, oils or polymer residues. These must be kept in glass jars and not in metal containers to avoid rusting. If what is left to dispose is only a small amount, it can be allowed to evaporate. However, it must not be disposed on sinks and water pipes. This rule does not exempt water-soluble substances. When these accumulate in water pipe, it may cause fire or explosion. Since detergents are widely used in household, it is important to know that this is the only toxic substance allowed to be disposed of in the drain.Unlike solvents, there is no tendency to accumulate flammable vapors that pose threat of explosion in the detergents. However, the triethanolamine is exempted from this. This particular substance must be treated as a solvent (Black C. and C. Stavroudis). For alkali and acids, the first thing that has to be done before treating or disposing it is the presence of a heavy metal like mercury, copper, zinc or cadmium. If any of this is a component of the waste, it must be put in a container and be removed with the help of the authorities. It must not be disposed in the sewer system.Otherwise, the acid and alkali can be neutralized with the use of vinegar and baking soda, respectively. Then, they can be disposed in the drain with the aid of plenty of water. Ether, being a highly flammable substance must be treated with utmost care. It must be kept in a metal jar, not a glass one, to reduce the formation of peroxide. Upon using ether, there must be no fire that is near. Even a lit cigarette can ignite fire. If the ether was ke pt beyond three months, it must be surrendered to bomb squads because it has higher tendency of exploding (Black C.  and C. Stavroudis).While several chemicals can be used to neutralize and treat some toxic substances, there are some which can aggravate the problem than minimize it. For one, acids and alkalis must be kept separated, as well as solvents and known flammable substances(Black C. and C. Stavroudis). Because toxic waste disposal has been a long-running problem, countries have long tried different measures to address this problem. However, the process of treating and disposing the wastes are too costly and not to mention health-threatening.Even if there are ways to treat it in landfills or special sites, it is difficult to find a place where dumpsites could be established. And so, rich nations opt to bring them to the Third World nations in exchange for several billions of dollars or so. These Third World Nations, driven by their need for funds for their own development oftentimes accept these offers, discounting the threat it pose. This act increases the problem. The shipment of toxic wastes is usually by means of cargoes or ships. The tendency of spilling the wastes in its way to its destination is high.Also, the recipient nations do not usually have enough facilities and technologies to treat the wastes properly. This result to a larger threat for the people and the environment of the receiving nation. Also, landfills and dumpsites are usually inhabited by slums and squatters, ignoring the huge possibility of acquiring illness. Although several nations already realized the adverse effects of accepting wastes from other nations, still, there are some which continues to be the garbage bag of the richer nations. However, it is very essential to say that this act do not solve the problem.It just moves it. It is like passing the burden to the other. Through time, much legislation has been passed to address the issue of proper waste, especially toxic wastes, management. However, the main concern is their treatment and disposal. But the catch is there is no completely safe way to do this. One way or another, the waste would still affect the land, the water, and the air. And so, to really address this problem which started with the existence of these waste materials, the control must be put on the production and manufacturing of this highly toxic substances.The industries must find alternatives to their existing materials to find them less toxic. Further studies may also be concluded to improve the sewer system. Recycling and reusing had also been the longest running advice to minimize the waste. The problem on waste disposal must be addressed right down to its roots. It is not just the duty of the government officials, or the environmentalists, but rather, it is the duty of everyone. It might not be realized, but everyday is an opportunity to change the situation.

A Reluctant Product of Therapy

Like many pediatricians and other adults who spend most of their time around children, she used false enthusiasm to cover up her other emotions. And also like many other adults who make spending time with children their jobs, she lived under the assumption that children were unable to see through this falsehood, and that children would somehow find this enthusiasm entertaining, or comforting, or relatable. But every time she smiled at me, the skin on her face bunching up under her cheeks and forehead to make room for her unnaturally large grin, I would cry. Because instead of her smile being reassuring, it confirmed to me that something was wrong. Not only that something was wrong, but that something was wrong with me. Her name was Ann, and she was one of my physical therapists. For three or four one-month spouts between the ages of three and twelve, my mother dragged me to her twice a week to undergo some new-wave quack therapy called Tomatis, a treatment in which I wore enormous headphones and listened to high-pitched opera music for hours on end, which, the doctor claimed, was supposed to cure everything from ADD to depression. At times I have convinced myself that all the time I spent with Ann was pointless. She was a board-certified torturer. And who was I for living through this? I was the glorious survivor, who was able to outlast her condescension and her misreading of my abilities, and through a philosophy of self-reliance and emotional fortitude, let my suppressed intelligence and charm blossom! It was, at least, easier to believe this. However, I have come to realize going through therapy as a child increased my success in social and academic spheres as an adult. I have to admit now that as a child I was slow to learn to read. I remember sitting in my 1st grade classroom with my paper reading exercise book, which had shorter words than everybody else’s, stumbling through â€Å"The Cat and the Mat†. My mild cerebral palsy was also something visible; I have home videos of me running like a duck on the soccer field, my right foot making a ninety-degree angle outward with each step. Perhap s I was just a late-bloomer for reading, and my cerebral palsy magically disappeared when I matured. But more likely, it was the many hours I spent in therapy that propelled me to be a good student, if not an exceptional athlete, as a young adult. My physical therapist, Skippy forced me to my physical limits on the treadmill, even though my limit might have been fifteen minutes on the lowest speed. I learned to take sports, and many other aspects of my life, seriously, not covering them up with shoulder shrugs and sarcastic jokes. My reading tutor Erin nurtured me to love reading, putting an MM on the bottom of every page I read correctly. The pleasure of candied bribery turned into actual enjoyment as I was able to move up from such boring books as â€Å"The Cat and the Mat† into riveting classics such as Harriet the Spy. Now reading has not only turned into one of my favorite free-time pleasures, but is also one of my major academic strengths; being able to read well and un derstand words has allowed me to write good research papers for history and to understand complex concepts in my biology textbook. Even Ann, while I was listening to that terrible music, engaged me in games of Scrabble Jr. and checkers, fostering my competitiveness and love for solving puzzles. Therapy is a gift I have learned to appreciate; many of the things I consider part of my unique trademark – my love of reading, my love of puzzles, my frankness and sincerity learned in defiance to the tyranny of fake smiles – were a result of therapy. Therapy made me who I am.

Putting the Puzzle Together Term Paper Example | Topics and Well Written Essays - 750 words

Putting the Puzzle Together - Term Paper Example The secretary writes the minutes and keeps all the records for the group. The records are useful for future reference and assessing the group’s progress. Most important, the secretary distributes resources to group members that are relevant to the project area. The spokesperson is charged with making presentations that comprise of progress reports as well as the final report of the group’s project (Carleton College, 2013). A monitor evaluator is a knowledgeable person who is charged with double-checking work done for accuracy. Moreover, he/she makes recommendations on the way forward. The resource investigator gathers information and all relevant resources for the project at hand. He/she has to identify current and reliable information that comprises of scholarly journals, the latest book editions and credible web sources. The specialist is an expert on the group’s project area. He/she is also essential in gathering information and critiquing the group’s p rogress (Skills You Need, 2013). A group member can fulfill more than one role in the group. For instance every member should be proactive in searching for relevant information. It should not be the sole responsibility of the resource investigator. This aspect of research is a valuable learning opportunity for all members. All the information gathered can be forwarded to the resource investigator. ... Leaders should be endorsed by the majority of group leaders, and all group members should support their leader. All roles are essential and it is difficult to rank them in order of importance. However it is important for a group to have good leadership. The group’s progress and punctuality in meeting deadlines is dependent on leadership. In essence good leadership is reflected on the quality of work done by the group. Poor leadership and coordination by a leader is likely to lead to a group’s downfall. The input by each member is also essential and all members should be committed towards realizing the set objectives. Aside bad leadership, individual members can also contribute to the group’s downfall. The need for individual members to cooperate cannot be overemphasized. A student fulfills several roles in groups. In each student group, it is essential to have a leader, monitor evaluator /advice seeker, secretary/summarizer, and resource investigator/observer. Th e leader sets the pace for work and guides the group until the project is complete. He/she also oversees the individual contribution of members. The leader motivates members and ensures that everyone is on the right track. A monitor evaluator asks questions and seeks guidance from the instructor. This is after the group encounters some difficulty that cannot be resolved by members. This member familiarizes the members with solutions and any emerging information. The secretary compiles a report of the work completed by the group at each stage. Extensive research for the project should be conducted by the resource investigator/observer. He/she is also charged with availing all resources for the project and ensuring that all borrowed material such as books is returned (APH, 2007).

The New Safety Program Research Paper Example | Topics and Well Written Essays - 250 words

The New Safety Program - Research Paper Example In this case, the physically challenged and clumsy people would be omitted as well as the illiterate and those that do not observe instruction with an aim of reducing accidents. In order to get employees to act safely at work, the employees should come up with rules to be observed and closely monitor the activities of the employees. Besides this, they should create a cut-off from the employees’ salaries for insurance in case of such risks at work. To ensure that those who need to wear goggle put them on; the owners should ensure their availability and educate the employees on the need for personal protection and safety (Shady, 2007). Owners should warn employees that in the case of an accident occurrence, should they fail to observe the safety measures, then they stand to bear the consequences and not the employing firm. Shady, K. (2007). An ergonomic look at facility laundry rooms: Kim Shady offers advice on creating a safe and employee-friendly laundry through ergonomics. Nursing Homes by Kim Shady, Focus on

Violence and Aggression in Sports is Because of the Media Research Paper

Violence and Aggression in Sports is Because of the Media - Research Paper Example A conclusion will hence be drawn as to the validity and weight of the thesis of the essay and a possible means of reducing violence and aggression in sports suggested. Introduction Violence in the field of sports is the physical and verbal actions executed during, around or directly linked to a sports event that are over and beyond the stipulated guidelines of fair play (Atyeo, 2000). This may be a boxing match, football, martial arts or even wrestling. These acts can and to include intentional assault of opposing players, abusive language and gestures towards referees. Threats also constitute violence. The violent and aggressive behavior witnessed in sports is as a result of the content of media coverage. Media (print, televised, audio and networked) has in the past swayed opinions, created and advanced perceptions and supported/ instigated different actions from the public they reach. However, it is worth noting that the media sometimes promote violence in sports unintentionally th rough live coverage. For example, the National Hockey League (NHL) of Northern America is characterized as lenient and supportive of gross misconduct, such as fighting between players. Hockey fans are entitled to watch the matches and the media is there to facilitate and satisfy this desire but its failure to censor occurrences of physical fights has in the past resulted in instances of violence perpetrated by the fans. ... the role media has played in fostering and fuelling acts of violence and aggression by sports enthusiasts and fans before, during and after sports events proving that the media coverage actively leads to and causes violence and aggression in sports. Discussion Giulianotti and Armstrong (2003) state that, â€Å"Modern day sports violence has its roots in western countries and was widely linked to the broadcasting of games on television sets† (p. 6). Popular belief suggests that initial cases of violence were directed and conducted by the working class individuals in an attempt to reclaim the various sports events which were primarily reserved for the rich and affluent members of the society. A decade later, similar incidences of hooliganism sprung up in more countries in Europe. The main reason the media creates and showcases sports violence and aggression is for the purposes of profit maximization through increased viewership and purchase of magazines and newspapers. The socie ty we live in is such that negative reports such as violence, deaths and accidents, during events attracts a considerable amount of public attention as opposed to more informative topics such as economics, healthy living, reforms among others, and the media utilizes this to its advantage. It is for this reason that the media will capitalize on every single opportunity that presents itself to report of violent incidents in sports events, with some glamorizing them and the perpetrators either with or without the knowledge that by doing so, they are just helping to polarize fans depending on their club loyalties. Children watching and reading the reports grow up knowing or thinking that violence in sports is something, which is normal and with such a trend, hooliganism in sports will never be

Art Curation Research Paper Example | Topics and Well Written Essays - 2000 words

Art Curation - Research Paper Example With the accommodation of terms such as performative, or self-reflexive, it is clear that curating is no longer only about exhibitions. This form of discourse proves that curating is slowly turning into a visible, self-critical and transparent process. The rising transformation and visibility of the exhibition since the 20th century has encouraged students to develop a motivation for engaging with the history of curation. On one hand, the transformation narrows down to the foundation of new institutions that accommodate for the exhibition of contemporary art, increasing temporalisation of museums as well as expanding the art market with countless art fairs and gallery shows(Vogel, 2013)1. Besides the need to renovate museums and enlarge their temporary exhibition spaces for marketing and other economic-related reasons, an artistic engagement with the museum’s collection has become a critical requirement for everymuseum. Regardless of the fact that these strategies are based on permanent collections, the presentation approaches have replaced the atemporal collection displaythat is viewed as rigid and authoritative(Altshuler, 2012)2. On the other hand, the art exhibition is changing to an extent that it encourages us to appreciate a range of typologies that overshadow the conventional formats of solo, group or thematic shows. The discourse in art curation considers the growth of new artistic practices that include institutional critique or conceptual art(Bourriaud, 2002)3.

Legal Issues Budgets and Administration Essay Example | Topics and Well Written Essays - 750 words

Legal Issues Budgets and Administration - Essay Example 2.) The Fair Labor Standards Act is a federal law which guaranteed worker's right to minimum standards laws. It has defined the 40-hour workweek, set out federal minimum wage, stated the requirements for overtime and placed restrictions on child labor. Hence, the major provisions of the Act are: a.) 29 U.S.C. Section 206 governing employees' minimum wage; b.) 29 U.S.C. Section 207 for number of hours of work; and c.) 29 U.S.C. Section 203 (1) in relation to 29 U.S.C. Section 212 pertaining to child labor. 3.) The Equal Pay Act of 1963 sought to abolish wage differentials based on sex. When the bill was passed, sex discrimination was denounced so that its key components are the following: a.) wages and living standards for employees necessary for their health and efficiency; b.) prevention of the maximum utilization of the available labor resources; c.) tendency to cause labor conflicts, which may impose burden, affect, and obstruct commerce; d.) burdening commerce and the free flow of goods in commerce; and e.) resulting to an unfair means of competition. 4.) Title VII of Civil Rights Act of 1964 simply prohibits discrimination in employment when based on national origin, sex, religion, color, and race. Title VII not only specifically identified specific acts which would constitute violation but provided for recovery of compensatory and punitive damages. In seeking for damages, it conferred jurisdiction upon courts to give injunctive relief in cases of discrimination in public offices and gave authority to the Attorney General institute suits to promote civil rights. 5.) The determination of pay discrimination for dissimilar jobs has become difficult. The usual query is what would be the basis or bases of discrimination when in fact an employee has different qualifications or simply into a dissimilar job from the rest. The fact that employees may have different jobs aside from their personal qualifications may become an issue of discrimination itself. In other words, should discrimination be prohibited when circumstances call for discrimination because of varying qualifications 6.) Not only that discrimination has created trauma in the society, it also created various social implications like earning gaps among sexes and/or races in workplaces. The society has been divided into thinking that women usually are limited as to what they could accomplish as opposed to men. The same is true of men and women of different racial origins perceived to be underachievers, of low intelligence and unproductive. 7.) Social Security is a very extensive government program to the point that people does not know how the program works or how it is financed. People have vague of the fact that they pay taxes to benefit them in the long run and that their benefits are connected to their income. This lack of awareness makes the people hesitant of the real benefits the people will have to receive by the time they needed social security benefits at the time of retirement. 8.) The management system affects the pay objectives in a manner that collection process may be affected due to varying or erratic management policies. 9.) The importance of controlling labor costs is that it gives the employer the idea and awareness of business expense which must match its projected growth and reserve capital. With such control, spending may go beyond the actual

Employers nd Collective Bargaining Essay Example | Topics and Well Written Essays - 2000 words

Employers nd Collective Bargaining - Essay Example Th Europen ocial charter, convention for baic right nd freedom nd th number of work of convention from International 87,98 nd 151 nd 154 are mot importnt. Th traditional model of th ocial relation of public ervice however wa prone to deep chnge during th lat decade. Th tendency wa toward th collective bargain, put in parallel by decentralization by determining th term nd general term of employment, of a legal framework reembling that of th private ector nd th identification of th right of trade union nd th right to trike (Bach, 1999,21) n importnt matter in ocial relation of public ervice wa th point to which th collective bargain i centralized or decentralized. Th general tendency i the lat year toward decentralization. n importnt argument in favour of decentralization i that it leave more flexibility thn th ytem centralized in term of profeional ituation, regional nd local pecific of job market. (Boaert, 2001,22) while thi cn increae th effectivene nd th effectivene in public ervice, it cn alo lead to fragmentation (Dell 'Arringa, 2001; Farnham nd Horton, 2000). In practice, th collective bargain in public ervice neithr i completely centralized nor i completely decentralized in ny Member State within th EU. Centralization nd decentralization often go hnd in hnd. Th centralized apect often refer to a certain form of central order, uch a limit of budget impoed by th Britih treaure. In th countrie with ytem of public office of career, thre i a degree more raied of centralization thn in th countrie without uch ytem. However, in th majority of th countrie, of th combination of th centralized nd decentralized negotiation are found. Within th EU, three group of country cn be ditinguihed. Th firt group contain countrie where th collective bargain i mainly centralized nd decentralization i limited. Th econd group contain countrie with th decentralized collective bargain. nd th third group contain partially centralized/decentralized collective bargain, but where th mot importnt negotiation take place with ectoral or at th regional level. (Boaert, 2001,22) Centralied collective bargaining In Frnce, one centrally conclude Germny, Greece, Autria nd Portugal, pay rie for th whole public ervice. In Spain, although not truth for th civil ervnt, remuneration of th contractual employee i negotiated by each minitry or department within central adminitration. nd with RU, th wage for th public employee are mainly centrally given in th National ervice of Health (NHS) nd th local government. In Frnce, th ytem ued to determine th baic alary of th civil ervnt i th ame one for five million civil ervnt. In th French ytem, each poition in a category equalize a certain number of point on th index of wage (indicial of grill of). Th baic nnual alary of a civil ervnt cn be calculated by multiplying th index of th category of th civil ervnt with th money value of a point of index. Th negotiation of wage relate to primarily negotiation in increae in money value of th point, implying a general pay rie. (Dell 'Arringa, 2001,87) In Germny, th determination of wage for th civil ervnt alo i very centralized. Th Federal law

Summary of Benjamin R. Bates. Audiences, Metaphors, and the Persian Essay

Summary of Benjamin R. Bates. Audiences, Metaphors, and the Persian Gulf War - Essay Example The American public was crucial to the Persian Gulf War. A number of communication scholars viewed Bush's actions as critical to acquiring and retaining this domestic public endorsement. However, some appeals that might work wonders with a domestic audience are not likely to be convincing to an international audience. For instance, appeals to American nationalism, American civil religion, or American exceptionalism may work well for an American audience, but are not likely to influence Omani, or Senegalese audiences. Other appeals, though, may persuade both domestic and international constituencies. Appeals that cross audiences are especially important in war rhetoric. Instead of being the persuasion of the whole cosmopolis, international persuasion can be considered the persuasion of opinion leaders that hold power in other states. In constructing persuasive appeals to international opinion leaders, Bush cannot simply speak however one wishes. According to Bates research Bush did four things successfully to persuade international opinion leaders. First, Bush identified appropriate international opinion leaders for persuasion. The Persian Gulf War was framed as a military issue. Therefore, Bush sought to convince the heads of other states to join the American military coalition. Bush also created the manifestation of consultation and dialogue through telephone diplomacy and personal consultations. Con

Visionary Mr Mineka Wickramasingh Essay Example for Free

Visionary Mr Mineka Wickramasingh Essay Brief background on CBL (Munchee) It was the visionary Mr Mineka Wickramasingha in 1960 who wanted to expand his family business from the chocolate market. It was at the same time that CARE looked at sources of nourishment for the poverty stricken. It was a substitute of a biscuit that Mr Wickramasinghe proposed looking to expand on those lines. At that time the market leaders were Maliban. They were the ones who were awarded the contract. Due to lack of space, CBL was first launched at Dehiwela in his own premises to produce a high protein biscuits for schools. From this footing Munchee, has marched forward to capture 80% of the market of the local market. For over 40 years the brand has developed a certain nostalgia that is irreplaceable by any other brand. The taste is enjoyed young and old alike. There vision is to become the number one biscuit in Asia. Product portfolio CBL now produces various food items which have become house hold names in Sri Lanka. CBL expansion is not only with biscuits to which consumers are more familiar, they also have chocolates under brand name ‘Ritzbury’ since 1990s. The other brands are Tiara and Lanka Soy. There are numerous subcategories under each product. There are jellies, soya base products, cereal products, herbal porridges, soups and much more. Sub Categories under the Munchee brand Sweet biscuitsCrackers Puffs Savory Biscuits Cream Biscuits Marie Cookies Assorted HerbalWafers These are premium and hand-moulded chocolates. They come in boxes and slabs. Can be as a coated biscuits or wafers or beans or candy bars. It is in different flavours, type, and size. Sub Categories Chocolate Coated Biscuits Chocolate Slabs Miniature Caterers RangeChocolate Coated Beans Chocolate Coated Balls Chocolate Coated Candy Bars Specialty ChocolatesChocolate Coated Wafers Soft sponge cake made to perfect texture and taste Layer Cake Portion Cake Butter Sponge Cake Swiss Roll Company performance Ceylon Biscuits is of undisputable quality. CBL has shown a growth both in sales and profit for the last 5 years. Revenue had doubled from Rs.1.9 to Rs 5,2 Billion by 2005. Group turnover grew by 48% that same year. Net profit that year was Rs.533 Mio. This was the highest recorded profit for this company. CBL profit gradually grew, as it caught on to an international market. By 2011 sales revenue has grown by 25% in comparison to 2010. The overall profit margin was around 9% for the recently past five years. If ever the company saw a small decline it was due to industrial unrest. This biscuit is spread over 95,000 retail outlets all around Sri Lanka. CBL exports to 36 international destinations. It has been able to spread it’s fame in South Asia as well. Some of the countries of export are USA, Canada, Australia, UK, Hong Kong, China, India, Maldives and even the Middle East countries. The annual export revenue is about US $ 4 to 5 million. CBL has many awards for its entrepr eneurship. These awards are Exports in the Gold Category, Product Brand of the Year for four consecutive years, Anugu International Food Fair award. The daily production is around 150 tons. The annual production is around 45,000 tons. The company’s labor force is about 3,500. Company sustainability relies on strict norms on quality, texture and taste. For this it uses the latest technology, innovative marketing, research and development. The three C analysis There are three phases that need to be carefully scrutinized in order get a total overview of the product. Customer analysis Of the main brand Munchee, the customer analysis will be done on a sub category -Marie widely known as â€Å"Tikiri Marie –or Munchee Tikiri Marie. It is a small sized biscuit. The market segment chosen were children. Presently it is packed in a ‘keep fresh pack’ sold at a economical price. The advertisement that was done on a range of media was presented in the most attractive way, backed by lyrics that set a smile on the lips of any child. It was later that Maliban put a Marie range into the market. But by then Munchee Tikiri Marie had taken the market by storm. Competitor analysis There has been great potential for a children’s biscuit in the market. CBL had limited resources, especially in production technology which restricted revenue. It was the consumer preference that motivated CBL to keep producing the Marie Biscuit. At one point in time 50% of the production was Marie. Yet, the company was unable to raise profits. Maliban held strong to its position. No advertising, trade promotions or merchandising was able take over the market share that Maliban held. Maliban Marie has an unique flavor that was unmatchable. Volume market share (Total Biscuit Market-February 2005) Communication analysis This is a (B2C) nature of business. The company has used campaigns such as Tikiri Marie scholarship program.-Munchee Tikiri Shishyadara. Expansion programs worth Rs. 500 million Rs. 300 million for state of the art plant. It was known as Plant 6 from Italy. CBL went to war using all types of media from TV, newspaper, radio, magazines, even websites to introduce a new Marie. There was a series of advertisement for Tikiri Marie- from ‘Kohomada Tikiri Mole’ to the first day in school. All campaigns had been embarked under their corporate moto-‘A crowning success’. This was CBL communication approach of tacking Maliban. Target market for Munchee Tikiri Marie The brand â€Å"Munchee† has not only spread over domestic market but also the export market. Munchee is now exported to over 36 countries. Munchee can be seen in Gourmet Shops in Australia, supermarket like Wal-Mart, K-mart worldwide in countries like UK, Germany , Italy , Middle-East , Canada and Japan. South East Asian region is spread over 11 countries. When Munchee is target marketed in this area, it must be the same target market as of the other South Asian countries. It is the high quality, texture and taste that captivate any child in any country. Because of this CBL must ensure that they do not loose the perception of ‘a biscuit for children.’ As it is not being partnered by any company as it was in UK the brand name can prevail. Here CBL needs to position its product, thus no private label will be needed either like NTUC of Singapore and Supreme brand in China. Segment for Marie Geographical segmentation-South Asia, Europe, America, UK Demographical Segmentation Age, taste, texture, income Behavioral segment- instant, nutritious Product positioning of Marie Brand Identity vs. Competition (Source- AC Neilson) Premium quality, Innovative and value for money brand available at arms length of desire. Scope of this Integrated Marketing Communications Plan It looks in to objectives, strategies, and tools in communication used to successfully bring about integrated marketing. The plan will discuss ways to launch a program to communicate product. Marketing objective Increase the sale of Munchee Buiscuits. CBL is looking to increase sales by 5% within the next two years. With this to increase the market share by 5% at the end of the second year. Increase the company profile while enhancing the product among the target market. Munchee also wishes to strengthen Brand image among South East Asian countries as a healthy, nutritious biscuit. Communication Objective Awareness program to reach 20% of target market through television, newspaper advertising and web promotions. At least 5% the target market must purchase the product. Issues and Challenges The target market may have other preferences in biscuits. This entirely depends on texture, flavor, taste, shape and size. Thus the promotions/advertising will have to be attractive, creative and innovative in order to reach the hearts and minds of South East Asian Children. Situational analysis Current problem facing product * The target audience may not be reached. * They may prefer other biscuits. * Difficult to build brand loyalty in the food industry. Identifying target * The target market is chosen taking taste and nutrition in to consideration. * Targeting people who looks for low price but has to be of quality. Selecting a Market to Target South East Asia Geographic segmentation Children of the age 1-16 , Middle class Demographic segmentation Target market Instant, nutritious Behavioral segmentation The target market that has been chosen is of the geographical location of South East Asia region among a demographic target of children between the ages of 1-16. In modern South East Asia food in freely available for purchases for people who are one the move. This biscuit provides nutrients that are good for children and is an easy snack in a keep fresh pack. It is instant food for hungry youngsters. Positioning through Marketing Strategies * Introductory price * Chance to taste Competition Product Comparison There are companies like DIMOs that offer discounts to Government servants but no company has offered it to Bankers. AMW is the first to get into this program. Barriers to Entry * The awareness in low. * Banks have tied with other automobile companies, on a separate basis for their leasing requirements and the staff gets their vehicles also leased through those companies. * Buyers may go for second hand as the economic situations are tough. Competitor Differentiation | Chery QQ| Micro Panda| Features | Small hatch back with comfortable interior, Three Cylinder DOHCMPI 12V Petrol 812 CC engine Chery is imported from China and marketed in Sri Lanka by David Peiris Motor Company| Micro car, Volvo tech, 1300 cc engine. Made in Sri Lanka. Comes with and without air bag.| Target Market| Working professionals| Working professionals| Strengths | Low price, Brand backing | Made in Sri Lanka| Weakness | Small range of customers, No discount| Small range of customersNo discount| Consumer Behaviour – problems faced in addressing communication message There is nothing extraordinarily attractive about the AMW Maruti. But the interior is appealing. It is economical on the fuel. There is a one year warranty on the car. These are some of the aspects in regards to the car that a consumer will look at. Then the consumer is going to look at the company that selling the car. Associated Motor Ways Ltd is one of the oldest automobile conglomerates in Sri Lanka. They are the sole distributors of Suzuki vehicles in Sri Lanka and are affiliated with several brand names in the motor industry such as Nissan, Yamaha, and Goodyear. Addressing the problems with the vehicle such as no extra ordinary beauty about the vehicle or that there is fume emission from the vehicles which is hazardous to the external environment, what AMW concentrates on is the interior of the car and how economical it is. The Maruti is good on fuel. The size makes it easy to handle. This car is val ue for money. Branding Bankers are likely for a discount program where the vehicles are leased giving a bank loan. Maruti is likely to stay in the minds of the buyer due to features of the vehicle, the interior and the engine capacity in relation to the other brands of this same model which where given under competitor analysis. The Maruti is a more durable and dependable brand. Position statement This promotion is available only for bankers that are permanent in their jobs and the loan facilities are available. Any other financing will not be permitted. The discount is available for all colours of Maruti. Promotion The promotion is done within Colombo and its near suburbs. For this promotion 50% of the budgeted funds are allocated. This was first circulated to family and friends, for the word of mouth is the cheapest and the best way of promoting a discount program. Gradually as the awareness starts to increase it will be circulated among banks, first on a personal basis to call whose contacts can be acquired. Then the leasing managers or the staff managers in charge of staff leasing will be approached. Depending on the geographical location, banks will be approached in regards to the promotion. Once the approval has been obtained by the management, posters will distribute to main branches. These are known as power position advertising. The dealership logo will be indicated in the poster. A list of the eligible staff members will be collected and a web based mailer will be sent out to them. Permission will be acquired to post the promotion on an intranet facility that is accessible only to the relevant bankers of the targeted bank. A car may be sent out to the main branch for display. Once the initial promotions have been done in and around the main branches where web may not be the best promotional attribute a news paper advertisement will be posted. The news paper will carry a pictureous depictation of the car with a Brand Ambassador. The Brand Ambassador can be a cricketer or any other sportsman who is working in a bank indicating that this is the best leasing offer ever. These adds will have to run every often and it must be made sure that the adds are not too small to see. It may be preferable to advertise in a Sinhalese paper when thinking of promoting the discount program among the suburbs. There has to be creativity, innovation and an even flow for an advertisement to catch the eyes of the reader. A Saturday or Sunday paper is preferable as people have more time than on a weekday to read the paper. Television can be used as last resort. This is expensive but can be the most influential method of advertising. This is a sure a way of information gathering for viewers. The television adds usually have a lasting impression on the viewer. This is a sure way of assuring results for IMC. There are many highly watched channels of those the cheapest but the most effective can be used. The TV add can play between programs. The programs after which the add will be aired will have to be carefully chosen. It will need to depend on viewer’s discretion. The advertisement can go on for a period of 6 months at least. The web based marketing is another method by which advisement can be done. This is the most modern method. Some of the websites frequently visited by banke rs are Facebook, ESPN, Google, YouTube, Digg.com, Myspace, and Perezhilton.com. The most popular of them all is Facebook, Google, and Youtube. All these websites focus on online advertisements. Websites like Facebook taps a large audience. This not only enables promoting to bankers but also lets others know the car sale. This is a good way to get other companies to tie up with the dealership of AMW. Communication Tactical Calendar | Jan| Feb| Mar| Apr| May| Jun| Jul| Aug| Sep| Oct| Nov| Dec| Poster| | | | | | | | | | | | | News paper| | | | | | | | | | | | | TV| | | | | | | | | | | | | Web| | | | | | | | | | | | | Display| | | | | | | | | | | | | Budget The largest potion that is 50% of the budget is for promotion. Of the 50% promotional budget 30% will be allocated for television commercials, the remainder 20% for news paper, posters, display and web. The remainder 50% will be allocated for Brand Ambassador and miscellaneous expenses. The total allocation for the budget is Rs. 2,000,000/- Measurement system Implementation Controls Monitoring, review and control will be done by the dealership company with the collaboration with the bank that is leasing the vehicle. The review to be done on a monthly basis. Progress against targets to be analyzed. For this a marketing plan has to be drawn out. A target market needs to be chosen and a pilot project done before, the discount program is advertised. Once the dealership feels that this can be a successfully implemented then monitoring has to be undertaken. This has to be done carefully. Gap analysis done on a regular basis. Correction actions need to be taken if there is no progress within the first three months of advertising. Dealership may go back to the drawing board and redo the marketing plan again. Quality Assurance Around this time the company was receiving a number of complaints regarding its biscuits breakages, poor taste, quality etc. Rather than ignore the issue, CBL decided to place an emphasis on investigating the cause of the complaints, and took corrective action, including formula changes, to reduce the high number of returns at the time. Setting up better procedures for packing, product handling and transportation, the company prepared for its future growth. It conducted daily taste tests of its own products and organized regular taste panels to compare its products with those of its competitors. It also methodically documented the specifications of all products being manufactured knowledge that had previously been passed on through practice and word of mouth. As the demands on the Quality Assurance department began to rise, the company decided in 1996 to seek ISO certification Today, quality assurance remains an area of particular pride for Munchee. The department plays a critical role in product testing and development of production process controls and systems. High hygiene standards for toilet habits and hair, together with regular swab tests of employees are strictly enforced. Every shipment of incoming materials is tested for quality and those that fail are rejected. Following a complaint, products are collected from customers and subject to laboratory analysis. In 2004, CBL received HACCP certification for food safety together with SLS certification for its biscuits23.. With these in hand CBL became the only confectionary company in Sri Lanka to acquire all relevant quality certifications for its line of business i.e. SLS, ISO 9001:2000, ISO 1400124 and HACCP. Product Development Product development also became an area of increased focus. While CBL had begun operations with a line of distinctive biscuits, along with some generics. However, in the recent years the push for higher turnover had resulted in innovation playing a secondary role. Some of the biscuits that had made Munchee distinctive, were neglected in favor of more mass consumer products. CBL began formulations and potential improvements to flavor and quality. The company also began to actively investigate and keep up with new technologies and machinery by participating regularly at trade exhibitions and through membership in industry associations. Distribution Around this time CBL took the decision to rethink its methods of distribution and undertook to overhaul its sales and distribution efforts in favor of a much bolder plan. Up to this point the company had depended almost completely on wholesalers to sell its products as a hassle free means of managing its distribution efforts. As a result, while CBL had the logistic and cost advantages of maintaining a lean sales team, the company suffered due to its dependence on the enthusiasm of its wholesalers to push its products. CBL decided to bite the bullet and invest heavily in its sales force. It expanded its distribution reach, increasing its number of distributors, changed the demarcation of sales regions into much smaller areas for more intensive sales efforts and recruited the regional and senior sales personnel required to cope with this new direction. 5.4.4 Customer Intimacy With the changes to its sales force, CBL was forced to face up to the fact that it was very removed from its consumers. The company recognized that it had been paralleling the moves and decisions made by Maliban rather than acting on real consumer insights. CBLs focus had been very much product centric concentrated on improvement of its formulation and production technology. It developed its products in isolation and once developed attempted to market them. Little attention had been paid to market research, even on an informal basis. Moreover, CBL began to understand that its customer was a new, youthful generation whose tastes and style were very different from the consumer of the previous ten years. Beginning in 1996, the Board itself acknowledged this changed attitude by beginning to go to the field on a regular basis to a top down attempt to gauge market perceptions and trends. The newly developed sales force provided feedback from consumers and distributors and the company took the further step of setting up a separate subsidiary to plan its marketing activities and to become more responsive to market needs an gaps. The holding company became primarily responsible for improving product quality and procedures. 5.4.5 Image Building CBL also recognized that in order to grow it had to become a better known name as a company. Partly as a result of its multiple brand names, CBL itself was relatively unknown as a corporate entity. Embarking on a campaign to raise the profile of the company, CBL engaged the services of a consultant, and set out to gain greater corporate recognition for itself among both consumers and the business community. The publics lack of knowledge of the breadth of the companys activities was hindering its activities as a holding company, particularly for purposes such as tapping the capital market. With the help of its consultant, CBL set about establishing a public image for itself. This was done primarily through the print media. Every week or so, an article regarding the company and its various corporate activities and Latest initiatives, including its export plans and CSR, appeared in the newspapers. Competitiveness Behaviour The Biscuit Wars Around 1995, CBL had hit a wall in terms of increasing its turnover. Limited by its existing production technology and consumer tastes, t its highest growth opportunity lay in the Marie biscuit market. While CBLs Marie25 biscuits now made up 50% of total production, the company was unable to meaningfully increase its sales and market share of the Marie category. It had attempted a variety of marketing activities including extensive advertising, merchandising and trade promotions, but was still not able to take sufficient market share away from Maliban. The Munchee Marie biscuit was at this time essentially a knockoff of Malibans Marie and used very similar packaging. However, despite much effort and testing, eBL was not able to exactly reproduce the Maliban Marie flavor. Although market share was a (then) respectable 10% and despite fervent urgings from its own sales team to the contrary to be more like Maliban, CBL decided that the time had come to change tactics and be different in order to try to break through the turnover barrier. The Tikiri Marie Campaign Munchee hit on the winning concept of launching its own Marie as Tikiri Marie – a petit sized Marie biscuit using an aggressive campaign entitled Tikiri Mole†, to bring the little biscuit to the attention of consumers. The campaign targeted children with the use of attractive advertising and proved a real turning point in Munchees growth and image. The biscuit was so successful that the smaller sized Tikiri Marie became the number one Marie biscuit in the Sri Lankan market, with a phenomenal 50 per cent of Marie market share and eventually forced the giant Maliban to acknowledge Munchee as a significant market player by playing copy cat and resizing its own Marie. 7 Part of Munchees success with Tikiri Marie stemmed from Malibans complacency and its failure to react to this attack on the Marie category. The Tikiri Marie campaign brought into effect other changes at CBL such as the introduction of Munchees keep fresh pack, which ensured better product freshness. Followin g its success with Tikiri Marie CBL expanded the use of the fresh pack to the entire Munchee biscuit range. The company also commenced a Tikiri Marie scholarship program for school children in 1997 entitled Munchee Tikiri Shishyadara which it continues to this day. Now in its eighth year, the program provides 120 deserving children with scholarships of Rs. 1000 per month for one year with fresh applicants being selected annually. By 1998, the cumulative effect of the changes made through the 1990s, resulted in CBL achieving a 30% market share of the biscuit market (up from 20% at the start of the 1990s) and topping the Rs. 1 billion turnover mark. This was a major milestone for CBL, both internally and externally. The company was becoming better known, both to consumers for its brands and quality products and to the industry for its investments in good technology. CBL reinforced this reputation by committing to a Rs. 500 million expansion program Rs. 300 million of which was spent on a large state of the art plant from Italy. Plant 6 as it was known, was CBLs largest capacity plant thus far with five lines that could handle both hard and fermented dough. This action by CBL sent a strong message, to its staff and associates, about CBLs optimism and confidence in the companys future growth commercialization of this new plant, CBL planned to introduce a new range of biscuits to tackle Maliban head-on. 6.1.2 The Lemon Puff Battle CBLs next strategic attack on Maliban came in 2001 with its Lemon Puff. The Munchee Lemon Puff had a solid 30% market share but as was the case with Marie, failed at growing sales further as a me too product. CBL decided to re-Launch Lemon Puff, by promoting it as a sandwich biscuit with a higher quantity of lemon cream. The campaign was heralded by an intensive television campaign directed at capturing the attention of a new market. What the company did not reveal in its advertising was that the cracker itself had been vastly improved, through a new formula and upgraded technology. It was in fact a noticeably better overall sandwich biscuit than Malibans Lemon Puff rather than just being a look alike with more cream. Going against the advice of its advertising company, Munchee replaced the traditional yellow packaging, synonymous with the Lemon Puff category, with a white wrapper. The superior moisture and odour barriers of the new metalized wrapper combined with the new pillow pack technology, which used only two seals to achieve increased air-tightness, better preserved the crispness and freshness of the sandwich biscuit. This had been a problem that had plagued both companies puffs for decades. Consumers who tasted the Munchee Lemon Puff for its extra cream (not enough cream was a complaint associated with both Lemon Puffs for years) were pleasantly surprised and rapidly switched loyalty to the Munchee Lemon Puffs. Thus Munchee demonstrated that it was in touch with tastes of its consumers and used their feedback to improve its biscuits. The impact of the product changes were felt immediately. Munchees market share in puffs went up from 30% to over 50% within a mere four months following this relaunch, and grew the entire puff category from 12 to 16%. As a result, Malibans share of Lemon Puff which had been a staggering 70% plummeted to 29%. By now Munchee had 45% of the local biscuit market and was vying with Maliban for market leadership. CBLs next big ch allenge was clear take on Maliban in the cream cracker market. Despite Munchees success at growing its sales, Maliban still had nearly 75% of the lucrative cracker market while Munchee was at a meager 23%. The Maliban cream cracker was well accepted and entrenched in the market. CBL had to find a way of breaking through with an innovative cream cracker to take on this market. 6.1.3 The Cream Cracker Assault The following year, in 2002, CBL re-Iaunched its cracker as a Super Cream Cracker, enriched with vitamins in a bold campaign, with live broadcast of two music shows held simultaneously in Colombo and Anuradhapura before massive crowds As they had done with the Lemon Puff, CBL used a new metalized pillow-pack with a contemporary look to break away from the traditional solid red Maliban packaging synonymous s with cream cracker and re-formulated the cracker to deliver a crisper and tastier product. The Munchee strategy of delivering a superior quality product that convinced consumers to switch brands proved a success and the results were phenomenal. Cracker sales grew, expanding its own market not merely taking over competitor share. Growth in sales nearly tripled and Munchees market share in cream cracker immediately doubled to 40%, reaching 50% the foHowing year. Today, of the total cream cracker category, which makes up 20% of the total domestic biscuit market, Munchee owns a 60% sh are. Super Cream Cracker accounts for 30% of the companys turnover, with a profit margin of over 25%. Munchee continues to fight aggressively for market share. Its most recent marketing campaign entitled Podi Badaginne† targets the large 500 gm pack market, previously serviced by loose crackers. The focus is to use the cracker as a substitute for a full meal for chummary factory workers who are already provided with two meals from their work place. The company has again demonstrated its knowledge of customer needs and changing trends and lifestyles in Sri Lanka as the record 128% growth of this heavy use pack from 2004 to 2005 shows. Business Expansion Beginning from the 1990s, CBL began looking at other areas in the food and confectionary industry to expand its businesses activities. 6.2.1 Ritzbury One of the first areas CBL explored was one naturally complementary to its existing line of business: chocolate. At one time, the company had produced chocolate for Nestle and had some exposure to Nestles chocolate operations. Launched in 1991, Ritzbury chocolates began with chocolate coated (enrobed) biscuits. The company went through much teething pain in developing the right quality chocolate for its use. It struggled to develop a workable formulation one that tasted good while withstanding the melting and rancidity caused by the tropical Sri Lankan weather. Ritzbury gradually developed its market by first growing its range of coated biscuits, then expanding to chocolate candies and hand made chocolates, and only recently moving into the traditional slabs the largest market category. The companys strategy is to provide innovative eye-catching products to its consumers and thus differentiate from its competition. Ritzburys first entry was Chunky Choc (chocolate covered biscuits sandwich with butterscotch cream filling), followed by Chit Chat (chocolate coated wafer with hazelnut cream) and Chocolate Fingers (chocolate coated finger biscuit). Another innovation for Sri Lanka was Pebbles (brightly colore d, sugar coated chocolate candies). The Ritzbury range includes Nik Nak, (chocolate coated vanilla cream wafer), Go Nuts (colored chocolate coated peanuts), Choosy (liquid chocolate stick) and Choco-La individual nuggets. Although it started out originally as a poor number four, Ritzbury recently beat Kandos (Ceylon Chocolates) to the number two spot in the chocolate market. However, at 21 % vs. 42% Ritzbury has only half the market share of market leader Edna and a long way to go to become number one. Further, Edna has itself shown to be very aggressive and quick in bringing out innovative products to the chocolate market. Ritzbury for its part, offers over 60 differentiated items, at the full range of price points and with a dedicated sales force certainly provides its consumers affordability and access. Despite being a small local brand, it offers consumers a complete range of chocolates and chocolate coated products and for other products frequently provides comparable alternati ves to more expensive imported products. Examples are Pebbles as an alternative to Smarties, Chit Chat to Kit Kat and Go Nuts to MMs. Yet, apart from the hand molded specialty chocolates and coated biscuits products, the company has yet to fully convince local consumers that the quality of its slab range is on par with that of imports or Kandos. By 1997, following its first biscuit war and having grown its market share in the biscuit market to a respectable 30%, CBL began to focus on sales of Ritzbury. One hindrance to improving growth CBL realized was the then single chain of distribution it used for both biscuits and chocolates. In practical terms what this implied was that once a retailer had gone through purchases of the more established Munchee list of biscuits they would have little money left for Ritzbury chocolates. Ritzbury sales were materially affected and it became evident that an alternative would have to be sought out. One option was to increase the breadth of the CBL range in order to afford to maintain a second line of distribution. 6.2.2 Pancho Snacks With this in mind, CBL decided to enter the snack food market in 1998 under Ritzbury. Named Pancho, this snack range was made up primarily of extruded snacks. However, despite the companys sustained efforts with Pancho and the separate sales force, the impulse buy snack market proved a disappointing arena for CBL. Despite the introduction of two products under a new line named Catch Me together with a re-Launch of Pancho in 2000, the company found that it could only succeed in this market with a near continuous stream of promotions. Although CBL persevered in snack foods for nearly five years, it was eventually forced to close up this operation and admit failure. With the aim of an expansion of its range still in mind, CBL next entered a completely unfamiliar food market. In 2000 due to its own financial difficulties, Yanik Incorporated, an investment bank, was selling its 79% stake in Soy Foods (Lanka) Limited, a public listed company manufacturing textured vegetable protein (TVP) n uggets. Soy Foods was a loss making number four player in the market but had pioneered a number of soy products under the brand Lanka Soy. CBL seized this opportunity to expand its range, encouraged by its present Managing Director who had experience in the soya area. CBL purchased the stake in Soy Foods at Rs.9/share and took over operations in September 2000; by 2002 the company had been successfully turned around and had become a viable entity. This was the success story that CBL had been searching for. The Soy Foods line allowed CBL to maintain a dual distribution network, one for its biscuits and another for chocolates and soy. The effects of this isolation of chocolate sales from biscuits were immediate and notable. By 2002 Ritzbury had made impressive inroads into its competition and grown market share to over 15%. 6.2.3 Lanka Soy In 2000 when CBL bought over management of Soy Foods (Lanka) Ltd. from Yanik it was a loss making company. Despite being the pioneer in the local soy market, Lanka Soy was at the time selling only 50% of the volumes of the market leader Raigam, with a 15% market share. The companys growth was stagnating in a rapidly growing market, and many smaller competitors were cashing on its market with lookalike products. The ambitious strategy set out for a turnaround of the company was to aim to make it not merely profitable but the market leader. CBL decided that not only was it necessary to grow Lanka Soys market share, through a fresh look and product, it was going to grow the total product market through a change in positioning. Thinking very innovatively, the company decided what was needed was to position soya not just as a vegetarian food, but as a more economical substitute for the protein content of a main meal. Touting advantages such as convenience, price and the lack of freezer requirements together with newly introduced catchy features such as interesting shapes and flavors, a whole range of new branded soy products were launched under the Lanka Soy umbrella. Given that at the time, chicken flavored soya was the most popular soya product the company decided it would introduce interesting flavors to accompany new presentation efforts. In order to take the competition head on, it improved the taste of its traditional range, while also increasing its product range. It developed not one but a range of chicken flavors, under the brand Chikosoy, consisting of tandoori, masala, roast and chilli chicken flavors. For the traditional vegetarian market, it introduced the Vegesoy range a further four flavors of mushroom, hot and spicy, Chinese chop suey and Indian rasam. But its piece de resistance was a completely new entrant Malusoy. This range of not merely fish but also seafood flavors truly tapped into a very strong local preference for seafood. Malusoy comprised spratts, devilled prawns, cuttlefish and ambul thiyal flavors. Packaging for the four new sub brands was done using a range of appealing eye-catching colors, with a unique logo designed for each. Advertising again interestingly was carried out individually on a sub brand basis. For example, Malusoy used a two column poster conveying the advantages over canned fish. The company also took the extra step of providing a sauce sachet to provide a one step cooking process. Emphasis was placed to introduce the cooked product to consumers by way of cookery demonstrations and street promotions. In particular, Malusoy was aimed at areas with little coastal access. Sales efforts were overhauled, re-demarcating a network to reach 35,000 outlets with designated representatives for supermarkets, catering and restaurant sectors. The results were strong. By early 2002 Lanka Soys market share had jumped to 25% hitting 30% and market leadership a year later. Malusoy to eBLs surprise turned out to be Lanka Soys front runner in sales. The strategy to offer consumers, as a household, their daily main dish at a price less than half the price of canned or fresh sea food was highly successful. Within 24 months Malusoy sales exceeded 500,000 packets a month, making up over 14% of the total soy market. Due to the sudden launch of many interesting products at the same time Lankasoy established itself as trend setter and frontrunner of the soya product market. 6.2.4 Tiara Cakes eBLs next expansion was within the local confectionary business -the lucrative Rs. 4 billion plus local cake market. eBLs main biscuit and chocolate operations had traditionally taken place at its home factory located along with its head office in Pannipitiya. However in 2002, the company invested Rs. 1.5 billion to set up eBL Foods International (eBL Foods), a Board of Investment (BOI) approved company in Rannala, about one hour away. Awarded a 10 year tax holiday, eBL Foods has a mandate to manufacture bakery products and chocolates the former includes a new line of cakes under the brand name Tiara. The new venture commenced operations in September 2004 with a new line of portion cakes individually wrapped sponge layer cakes, marketed under the Tiara sub brand Okay, The product line also includes swiss rolls. CBL Foods boasts a state of the art plant intended primarily for cakes and a Clean Room,,33 to guarantee freshness for a shelf life of up to eight months. Due to production constraints faced elsewhere however the 110,000 square foot modern facility also includes manufacturing and packing for chocolates, wafers and biscuits the latter including both hard and soft dough. CBL expects that its group tax slab will come down to 32.5% as a result of CBL Foods tax advantaged status and the shifting of these manufacturing of chocolates, wafers and biscuits, which previously came under Ceylon Biscuits tax slab. The company uses a formula to determine profit and is taxed at the preferential rate of 15% on its export. 6.2.5 Other Snacks In 2004, CBL invested Rs. 50 million to acquire a 60% stake in Cecil Food (Pvt) Limited (Cecil Food) an organic manufacturer of dehydrated fruit products, fruit juices, desiccated coconut and cashews primarily for the export market. Though the company had been in existence for 10 years and exported to 20 countries, it was facing financial difficulties. CBL brought to Cecil Foods the financial strength and management experience that it needed, while the founder retained a 25% stake. CBLs main interest in Cecil Food was its exposure to rural agriculture and its export and local market potential. The company presently exports to countries including the US, UK, Germany, Taiwan, Australia, New Zealand, Malta, UAE, Saudi Arabia, Qatar and Bahrain. Armed with CBLs financial backing the company has overcome its working capital needs. CBLs infusion of capital has enabled the purchase of new equipment and is now looking at expanding sales to tap the local market. Cecil Foods also has a 100% o wned subsidiary Cecil Fruit Canneries which concentrates on natural fruit juices for both the domestic and export markets. CBL intends to launch this range to the domestic market by introducing a line of fruit juices in novelty pouches. Export Markets CBL has also set its sights on growing its revenues through tapping sales in overseas markets. Although CBL had been exporting biscuits from inception, around 1997, the company began to export regular container loads to the United States, Canada, Australia and India, while also investigating at lucrative export markets such as the Middle East. India became a particular focus, with the company beginning its own marketing effort there. By 2000 CBL was also exporting to the US, Canada, Australia, UK, Sweden, the Middle East, Hong Kong, Mauritius, Fiji Islands and the Maldives. Although the export sector took a long time to stabilize, export orders now go out to 36 countries, exceeding Rs. 110 million in value (USD$ 1 million) in 2004/5. Exports to the UK, Middle East and Canada are mainly to the so called ethnic markets catering to the Sri Lankan diaspora, but in other countries demand is slowly establishing into in the established biscuit market through chain distributors. While most e xports are under private labels that it, outsourcing for foreign biscuit companies CBL has managed in some instances to establish its own brand. This is particularly the case in Australia where the company has taken the additional step, as it did in India, of setting up its own marketing effort by establishing a company representative as market manager. Australia is now the main export market for CBL, having overtaken the United States. CBL also enjoyed some recent success making inroads into western Africa. 6.3.1 Entry into India There are four accepted methods for a company to enter a foreign market: exports, licensing, joint ventures and direct investment, which often represent an evolution in the degree of interest the company develops once it is present in the market. Beginning with straightforward exports from the mid 1990s and early exports of containers to India in 1999 CBL took the next step in developing the Indian market by investing Indian Rupees 3.6 crores (36 million) to purchase Parrys Confectionary based in Pondicherry, about an hour from Chennai. Setting up a 100% owned subsidiary Ritzbury India, CBL began manufacturing operations for the first time outside Sri Lanka. The acquisition provided CBL with a six line 350 ton a month manufacturing plant. The company entered the Indian market with the Munchee and Ritzbury brands, for distribution in Tamil Nadu and Kerala. While the chocolates were manufactured in Sri Lanka, most of the Munchee range was baked in India. CBL produced nine varieties of biscuits including Marie, Glucose biscuits and several creams at the Pondicherry plant. This manufacturing base in India proved to be both a blessing and a distress to CBL. On the one hand, it became a strong negotiating tool for CBL at a time of labour unrest. CBL was able to take a tough stance, threatening closure and the moving of its entire manufacturing operations to its base in India. However, on the other hand, distribution arrangements provided by Parrys proved to be less than satisfactory. The company began a losing battle in trying to distribute its products. Revenues were far below expectations and Ritzbury India further faced a number of detrimental tariffs in South India. Despite a Free Trade Agreement with India, and a reduction of duty to 3%, the state sales tax in Tamil Nadu was increased by 8% for imported goods effectively nullifying any duty concessions. Following a second acquisition in India, CBL decided to completely dispose of its Chennai operations at a loss , dissolving Ritzbury India. In 2003 CBL heard about the sale through court auction of Bakemans, once the third largest biscuit manufacturer in India with a market share high of 13% of the total Indian market. Outbidding its Indian competition in July 2004 CBL successfully acquired the assets of Bake mans at a cost ofRs .. 300 million. Along with the premises the company also gained six biscuit lines from the acquisition, two of which it chose to bring to Sri Lanka for installation at CBL foods to allay its present capacity constraints. Based in Patiala in the state of Punjab, CBL set up CBL India with plans to commence commercial production in the near future, using one biscuit line. Having recruited Bakemans former CEO, who had been directly involved in the companys rise to its one time number three position, CBL has ambitious plans for India and its manufacturing operations there in the future. Tentatively speaking of a Munchee-Bakemans brand name, CBL aspires to become number three in India within two years of operations and have the same type of success at retail that Dilmah has achieved in India CBLs challenge in India is to find a mass consume r line of biscuits similar to Marie and Cream Cracker in Sri Lanka. Glucose biscuits are an area that the company will have to examine, given their present popularity in India, but to compete with established players such as Parle-G and Britannia, CBL will need both a reliable distribution network and an attractive proposition for the Indian consumers to give it a try. The use of the Bakeman name, which would certainly aid the latter, is presently an issue. If CBL is able to use the Bakeman brand name in some form it will cut down market establishment time considerably. CBLs strength is that it has the innovation to develop a product to suit this market and it has proved in Sri Lanka that it has the quality and taste to convince consumers to switch to its brand. What remains to be seen is whether it will have sufficient insight into the Indian market to correctly select what that winning product and distribution strategy should be. Other Indian Ventures In 2004 CBL entered into an agreement with Ferrero of Italy to distribute and undertake manufacturing on Ferreros behalf. Ferrero is the world renowned producer of Nutella, Tic Tac and Ferrero Rocher and Mon Cherie brands of chocolate and another family owned business. Presently the agreement entails the manufacture of boxes for Tic Tac, Ferreros signature mini mint, intended to be extended to the manufacture or finishing of the mint pill also. CBL distributes Ferrero Rochers foil wrapped boxed chocolates, Nutella and Tic Tac for Ferrero in Sri Lanka and India. Manufacturing commenced in August 2005, packing pills imported from Australia into the boxes. Distribution is intended for Sri Lanka, Africa, India and Pakistan. The linkup with Ferrero is another example of CBLs chairmans dynamic personality and relationship building skills. Following initial contact in India, CBLs directors visited Ferreros head quarters in Alba, Italy, which Ferrero reciprocated with a visit to Sri Lanka. The company has expressed an interest in using Sri Lanka as a base for South Asian activities, moving its present activities from India, convinced of CBLsabilities as a business partner. CBL in turn hopes the association will expand its knowledge base through contact with the 60 year old Italian family business. Business Unit Contribution Biscuits Turnover from Munchee biscuits, the biggest contributor to group turnover, grew 30% in the financial year 2004/5 and early results for 2005 show this trend continuing. Past years sales have grown at a similar overall pace, although specific products have shown even higher growth rates at times of changes and innovation. Profit margins on biscuits range from 20-25% with products such as Super Cream Cracker, Tiffin and Chocolate Puff being the most profitable. Biscuit sales are presently constrained primarily by production capability, with demand strong and the company intending to increase its production lines in 2005/6. To try to keep up with demand, CBL has brought down two lines already from its recent acquisition in India and plans to import a new 2 ton per hour machine from Italy, expected to be installed in early 2006. Group Performance While CBLs overall growth has been strong over the past five years with revenues more than doubling from Rs. 1.9 to Rs. 5.2 billion over the period, profit increases have been even higher due to various tax benefits. In 2005 CBLs group turnover grew 48% to Rs. 5.2 billion and net profit after tax grew 63% to Rs. 533 million, the highest ever in the companys 36 year history. Sales surpassed the previous year across all areas of biscuits, chocolates, Soya and exports. The tremendous bottom line growth clearly indicates the contribution accrued from CBL Foods tax advantaged status. In comparison the 2004 figures were 11% top line and 23% bottom line growth. On average, overall profit margin has been near 9% over the five year period. This is taking into account FlY 200112 which differs due to both the industrial unrest that CBL faced for two months of that financial year as well as the exhaustion of the tax benefits afforded by the 1988 Investment Tax Allowance. The companys latest earning per share figure (EPS) is an astonishing Rs. 53.12 and more impressively has grown from Rs. 36.75 in 2003. This EPS figure reflects the extraordinary growth that CBL has experienced over the last 10 years. EPS in the late 1990s was actually in the Rs. 3000 range on the companys original ordinary share capital of Rs. 390,000 (made up of 39,000 Rs. 10 shares). Path Forward Ceylon Biscuits faced with production capacity constraints for its biscuits, as demand has grown well beyond forecasts. It has adopted the following three pronged approach to increase capacity: a) bringing down two biscuit lines from India from its Bakemans operation for immediate capacity expansion, b) importing a brand new large capacity plant from Italy and c) future capacity expansion of its Indian manufacturing operations. CBLs future growth will come from increasing exports of its established products and diversifying by leveraging its domestic logistics and distribution capabilities to market its other products. The company is also increasingly open to looking at new opportunities, an example being manufacturing for Italian chocolate maker Ferrero. The companys core competencies for the future will be investment in technology, financial strength, sales and marketing competency and focused management. Key challenges will be dealing with its production restrictions and becoming able to compete on a global basis by 2007. CBLs greatest test will be when the Indo Lanka FTA final phase permits Indian biscuits to be imported duty free beginning 2007. CBL intends to examine becoming listed on the Colombo Stock Exchange over the next few years. Since the desire for listing does not seem to be driven by financial needs only, it is still unclear what CBL will gain from this step. The company wishes to formalize its procedures in order to firm up its financial transparency and professionalize its organization structure and operations to ensure future continuity and success. There is a sentiment that going public will enforce the discipline required to ensure this. CBL is well poised with a business model to ensure ongoing value creation. It has spent time building strong brands that have future earnings potential. The brands have proven their competencies in that they have been replicated across new markets with success. However there are some concerns that need to be explored. Managing export markets Export marketing could be more aggressive the model adopted by Munchee for Australia of establishing a marketing office seems the proven route to establish and develop key markets. We see some amazing possibilities for synergies for CBL in inviting someone of the caliber of Merrill 1. Fernando Chairman Dilmah to its board, perhaps even offering Dilmah some equity in an export division or forming a separate export company, who could help with establishing relationships with some of Dilmahs retailers and distributors in Australia. One way or another, the use of a different model to fast track export market expansion is advisable. 5. Managing Indian market entry This is the second greatest challenge facing the company. India is an amazingly dissimilar market to Sri Lanka despite certain cultural similarities. It is fragmented with over 15 million retail entities, the largest number in the world. The organized retail sector in India is only 3%. However, over 51 % of its population is under 25 years of age and the fastest growing sector is the retail high-end supermarkets -expected to grow over three fold in the next five years (from US$8 billion to US$25 billion). Beginning with three malls in 2003, India had 25 by 2005 and is building 200 more. The pace of change is phenomenal. It makes sense to enter this high-end retail Focus on core competencieslRefocus on Sales and Marketing CBLs passion for quality, capacity to build brands and technological and production innovativeness are great competencies to be retained. Skills like marketing and sales are always unstable. Such skills are in demand, pressures are great and often new challenges are looked for in different cycles of growth. No proper product management system or category management is in place. It is important to have some depth to the marketing department. And while CBLs success speaks volumes for the capabilities of its current Director of marketing there is a need for a diversity of approaches and opinions so that marketing efforts do not grow stale. Key mid level appointments need to be made. Customer intimacy! Product leadership / Managing brand TOM In spite of CBL making all the right moves, and succeeding in achieving higher scores than Maliban in most of the consumer research categories (see chart below), Munchee is still behind in brand Top-Of-Mind (TOM) recall. This is despite Munchee having strong market noise levels in share of voice and especially with the competition making so many mistakes. Part of the gap between Munchee and Maliban in top of mind recall can be explained by the long history of Maliban as a market leader, and that it was the dominant player for a very long time. Part of the gap between Munchee and Maliban in top of mind recall can be explained by the long history of Maliban as a market leader, and that it was the dominant player for a very long time.

Sale Transaction Essay Example for Free

Sale Transaction Essay Scholarly accounts narrate of a sale transaction between the early 17th century Dutch settlers in Manhattan (Island Manhattes then) and the Indians occupying the island. In the article written by Francis (n.d.), the sale transaction took place in August 10, 1626 (381 years ago), and amounted to 60 guilders (E.B. OCallaghan, ed. 1856 Documents Relative to the Colonial History of the State of New York. Albany. Vol. 1, p. 37, as reported in Francis, n.d.). The payment was actually in beads and trinkets but was assumed to amount to 60 guilders. An article in The Straight Dope and a paper presentation of Banner (2001) estimated 60 guilders to be around $24 based on the times currency exchange rate. The question is to compute how much that money is worth today had that amount been deposited in a Savings and Loan organization, and earned 5% rate compounded quarterly. Compound interest formula: M = P (1 + i) ^ n where M is the final amount including the principal (unknown), P is the principal amount ($24), i is the rate of interest per year (5%), and n is the number of years invested (381). Since the interest is to be compounded quarterly, i will be changed to 1.25% (per quarter), and n will be changed to 1,524 (quarters in 381 years). Hence,   Ã‚  Ã‚  Ã‚   M   Ã‚   = P (1 + i) ^ n   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $24 (1 + 1.25%) ^ 1,524.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $4,001,656,783.35 à   the present amount of $24 in 1626 given the above conditions.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   If the same amount of money will be deposited continuously in the same amount of time (i.e., present + 381 years or 1,524 more quarters – this is the year 2388), the new given would be:   Ã‚  Ã‚  Ã‚   M   Ã‚   = P (1 + i) ^ n   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $24 (1 + 1.25%) ^ 3,048.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   = $ 667,219,042,156,319,000.00 à   the year 2388 amount of $24 in 1626 given the above. References: Banner, S. 2001. Manhattan for $24: American Indian Land Sales, 1607-1763 (Paper presentation at the John M. Olin Center for Law Economics, The University of Michigan). http://www.law.umich.edu/CentersAndPrograms/olin/papers/Fall%202001/banner.PDF. Date accessed: September 24, 2007. Francis, P., n.d. Beads and Manhattan. http://www.hartford-hwp.com/archives/41/415.html. Date accessed: September 24, 2007. Personal Finance Advice, 2006. Compound Interest, Manhattan the Indians. http://www.pfadvice.com/2006/01/15/compound-interest-manhattan-the-indians/. Date accessed: September 24, 2007.

Identity Formation and the Development of National Interest

Identity Formation and the Development of National Interest Constructivism Ideas, Identity and Foreign Policy In the analysis of international politics, the process of identity formation and how national interests are conceived should represent central issues, as they are inextricably linked to a states foreign policy. The importance of identities results from the fact that they perform two vital functions: expressing to the self and others who the self is, as well as expressing to the self who others are. Due to the first function, having a certain identity determines an associated set of preferences regarding the choices of action in various circumstances and when different actors are involved. That is why a states identity generates its interests and subsequent behaviour towards fellow members and situations related to the international system. The second function implies that a state perceives others according to the identities it attributes to them, while simultaneously reproducing its own identity through social interaction and practice (Tajfel, 1981:255). These notions have been conce ptualised and emphasised in IR theory by constructivist scholars, who argue that global politics originates not only in the international system but also in an international society. Constructivists stress the constitutive effects of ideas and norms that set the parameters within which identities and interests are formulated (Brown and Ainley, 2003:49). When studying inter-state relations, it has become essential to analyse how ideas are created, how they evolve and influence states perceptions and response to their situation. In order to achieve such an objective, constructivism plays a key role by promoting the tenet that the manner in which the material world shapes and is shaped by human action and interaction depends on dynamic normative and epistemic interpretations of the material world (Adler, 1997:322). From this perspective, constructivist frameworks show that even the most enduring institutions are based on collective understandings. Their important contribution to the st udy of IR lies mainly in emphasising the ontological reality of intersubjective knowledge, along with its epistemological and methodological implications. That is why constructivism argues international relations consist primarily of social facts, which have acquired such a status due to human agreement. They represent reified structures that were conceived ex nihilo by human consciousness, subsequently being diffused and consolidated until they were taken for granted (Adler, 1997:322-323). Constructivist scholars also believe that actors attach meanings to and cognitively frame the material world as well as their experiences. So collective understandings or the distribution of knowledge offer the reasons why certain elements are as they are, as well as the indications as to how actors should deploy their material capabilities (Wendt, 1992:397). One might deduce from the previous statement that the context of collective meanings structures the preferences and behaviour of political actors, which would suggest that constructivism features deterministic tendencies. On the contrary, its theoretical premises have a much more nuanced nature and the constructivist position within the agency-structure debate asserts that the two elements are mutually constitutive. Constructivism argues that meaningful conduct is possible only within an intersubjective social context, since agents develop relations with and understandings of others via ideas, norms and practices. In their absence, actions like the exercise of power would be devoid of meaning because ideas and norms have constitutive effects on identity, specifying the features that will enable others to recognise that identity and respond to it accordingly (Jepperson, Wendt and Katzenstein, 1996:54). In this process, agents exert their influence by consciously perpetuating and repro ducing the social context through their prolonged actions and practices. A significant point to remember is that structure becomes meaningless without some intersubjective set of ideas and norms, so neither anarchy nor the distribution of capabilities alone can socialise states to a particular conduct (Dessler, 1989:459-460). Until now the discussion of constructivism has mentioned several times the notions of constitutive effects or being mutually constitutive, but without describing more elaborately what they entail. The relation of constitution must be differentiated from that of causality, as constitutive theories enquire about the conditions which instantiate a phenomenon, rendering it possible. In this respect, Robert Cummins employs the concept of property theories because they have a different objective from causal explanations: to account for the properties of things by reference to the structures in virtue of which they exist (Cummins, 1983). Another key aspect of constitutive theorising refers to the fact that the counterfactual claim of necessity is conceptual or logical, not causal or natural (Wendt, 1998:106). For instance, the conditions constituting a phenomenon define what the latter is, which conveys a relationship of identity not causal determination. These two components are inextricab ly linked, so that when the conditions come into being, the phenomenon comes into being with them. By contrast, causal explanations rest on two different assumptions: the factors causing an event exist independently from their outcome and are also temporally prior to it. If one applies these theoretical assumptions to the context of ideas, several implications become immediately apparent. The significant role that ideas play in international relations is fully acknowledged only when we recognise their constitutive effects (Wendt, 1999:87). The relationship of constitution derives from the fact that ideas create political outcomes by shaping their properties, meanings, perceptions or interpretations. These are in turn dependent on their ideational source, they exist only in virtue of those ideas terrorism cannot be conceived apart from a national security discourse that defines it. The national security discourse is in turn inextricably linked to constructing a notion of terrorism, since without it the concept would be meaningless. When analysing foreign policy, dominant schools of thought in IR theory usually ignore ideas and identity or regard them as intervening variables at best, helping to account for outcomes which surpass the explanatory abilities of traditional materialist factors like power and interests. The approach in question is problematic as it does not encompass fully the ideational impact ideas in fact create materialist causes. The bottom line of what becomes most contested in the materialist-idealist debate is the relative contribution of brute material forces to power and interest explanations as opposed to ideas (Wendt, 1999:94). At this point it might be useful to consider briefly the traditional view of materialism which originates in Marxism. The classical Marxist dichotomy portrays the material base as the mode of production, while culture, ideology and other ideational factors belong to a non-material superstructure. Wendt believes the same principles can be extended and applied to re alism; after all, modes of destruction are as basic as modes of production (Wendt, 1999:94). Both instances contain a crucial issue, namely that ideational factors become completely separated from economic and military considerations. Here D.V. Porpora noted a conceptual contradiction, considering the fact that Marxism defines the modes of production not only via forces, but also via relations of production. Relations represent ideational phenomena embodied by institutions that ultimately refer to shared norms (Porpora, 1993:214). The obvious implication points to the fact that the material base of Marxism is actually infused with ideas and norms, which also reveals their constitutive role concerning materialism generally To further reinforce such an argument, it is necessary to challenge the conventional materialist view of interests by acknowledging their nature interests are actually cognitions or ideas. This perspective has been promoted by two distinct fields of knowledge and their associated scholars: cultural anthropology and philosophy. Drawing on cognitive psychology, the anthropologist R.G. DAndrade (1992:28) sees interests, desires or motivations as schemas (frames, representations, ideas), which reflect knowledge structures that make possible the identification of objects and events. A significant aspect to remember is that schemas are not given by human nature. DAndrade (1992:31) admits that some interests can be rooted in biological drives which alludes to their material nature, but biology fails to explain most of the goals human beings seem capable of pursuing and these are learned through socialisation. In this sense, the anthropologist offers the example of an interest for achievem ent: it implies a social standard about what counts as a legitimate aspiration and the individuals desiring to achieve have internalised that standard as a cognitive schema (DAndrade, 1992:35). A very similar opinion has been advanced by R.B.K. Howe who draws on philosophy to articulate a cognitive theory of interest or desire. He too acknowledges that biological mechanisms influence interests, yet even very primitive desires are mostly directionless and depend on beliefs or ideas about what is desirable to render them meaningful (Howe, 1994). That is why ideas play a key role in defining and directing material needs; one perceives a goal as valuable, which in turn determines ones interest in accomplishing it. These perceptions are learned sometimes by interacting with nature which resonates with materialist factors, but mostly they are learned through socialisation to culture an inherently idealist phenomenon (Howe, 1994). Consequently, having reached similar conclusions starting from different premises, scholars in cultural anthropology and philosophy identify the cognitive basis of interests, or that ideas and not material drives create interests to a great extent. In foreign policy analysis, the concept of national interest has been accorded considerably more explanatory ability compared to other variables, particularly due to the influence of the classical realist and neorealist frameworks. However, is its nature inherently materialist and objective as the realist school of thought would have one believe? Or does it rather represent the product and construct of different interpretation processes, in which case ideas and identity become essential? The neorealist approach to international relations rests on the assumptions that the distribution of material capability in the states system can be objectively assessed and that threats to national interests can be accurately recognised. Such a perspective largely ignores that threats are not self-evident and the national interest, when confronted with a problematic situation, becomes a matter of interpretation (Weldes, 1996:279), hence the significant influence of ideas and identity. Moreover, cons tructivism convincingly challenges the objective and materialist view of realism concerning national interests, reintroducing the crucial role of ideas and identity. It does so by promoting the tenet that people act towards objects, including other actors, on the basis of the meanings that the objects have for them (Wendt, 1992:396-397). Wendts work has had a fundamental contribution in reconceptualising the national interest as the product of intersubjective processes of meaning creation. Nevertheless, consistent with the neorealist tradition, he regards states through the black box metaphor, their internal processes being irrelevant to the construction of state identities and interests. Wendt (1992:401) argues that the meanings which states attach to phenomena and subsequently their interests and identities are shaped via inter-state interaction. This does reflect an important facet of identity formation, but also neglects the historical and political contexts in which national in terests are deeply embedded, because the interpretations defining state interests cannot be restricted to the meanings and ideas generated by inter-state interaction. After all, any state is inextricably linked to the domestic actors that take decisions in its name. These agents do internalise the norms characterising the international environment, yet they also approach politics with an already formed appreciation of the world, the international system and the position of their state within it (Weldes, 1996:280). The national actors ideas and interpretation of all these issues stem partly from domestic political and cultural contexts. As Antonio Gramsci (1971:112) noted, civil society is the sphere in which the struggle to define the categories of common sense takes place. After revealing interests as expressions of ideas, one might advance the counterargument that such a conceptualisation applies only to individuals, becoming irrelevant in the case of states and the international system. The latter brings forward another essential point of this paper, which argues that states articulate a constructed collective identity that influences what they perceive their interests to be. It is best shown when taking into account the example of foreign policy, a domain in which various actors make decisions according to their ideas and perceptions of the national interest. Following the collapse of the communist regime, Romania and its political leaders were faced with the opportunity to choose the appropriate future course for the emerging democracy. Their decision was to actively pursue a transformation for the new state, seeking to create a collective identity with the West. But before proceeding with the empirical discussion, it has become imperative to defin e and conceptualise one of its central notions identity. This context particularly deals with state identity because it represents the most relevant instance for analysing foreign policy. In the philosophical sense, identity can be defined as whatever makes an entity what it is, although such a definition is too broad to render the concept meaningful. That is why, for analytical purposes and conceptual utility, identity will be understood using a two-faceted definition. On the one hand, it can be regarded as a property of intentional actors that generates motivational and behavioural dispositions (Wendt, 1999:224). On the other hand, identity cannot be conceived without recognising that which is like, other and simultaneously like and other, or without an understanding of the self which comes from this recognition (Norton cited by Campbell, 1992: 78-79). Both facets of the definition suggest that identity contains at base a subjective or unit-level quality rooted in an actors self- understandings. Their meaning will often depend on whether others represent that actor in the same way, a feature which configures the inter-subjective quality of identity (Wendt, 1999:225). Even a simple example can illustrate the point in a more enlightening manner: Helen might think she is a lecturer but if that belief is not shared by her colleagues and students, then her identity will not operate in their interaction. In other words, both internal and external structures constitute an identity and it takes form under two types of ideas: those held by the Self and those held by the Other. The character of this internal-external relationship varies, which leads to the existence of several kinds of identity, rather than one unitary phenomenon susceptible to a general definition. Building on the work of James Fearon (1999), a typology that features several kinds of identity will be presented here, all inextricably linked and feeding into each other: personal and social, type, role, corporate and collective. First, personal identity is constituted by the self-organising, homeostatic structures that make actors distinct entities (Greenwood, 1994). These structures have a material base represented by the human body, as well as a social component. The latter points to a set of attributes, beliefs, desires, or principles of action that a person thinks distinguish her in socially relevant ways and that (a) the person takes a special pride in; (b) the person takes no special pride in, but which so orient her behavior that she would be at a loss about how to act and what to do without them; or (c) the person feels she could not change even if she wanted to (Fearon, 1999:25). What differentiates the personal identity of intentional actors from that of other entities is a consciousness and memory of Self as a separate locus of thought and activity (Wendt, 1999:225). It cannot be denied that people constitute distinct entities in virtue of biology, but without consciousness and memory a sense of I they are not agents. This aspect resonates even more in the case of a state, since its people must have a common narrative of themselves as a corporate actor. Therefore, the state itself might be considered a group Self capable of group-level recognition (Wilson and Sober, 1994:602). In the former, an identity is just a social category, a group of people designated by a label (or labels) that is commonly used either by the people designated, others, or both. This is the sense employed when we refer to American, French, Muslim, father, homosexual, (p.10) National identities, like American or Russian, are examples of type identities. There are almost no contexts in which it would make sense to speak of the the role of an American, except in a theatre play where role means part. Other social categories that are almost wholly type identities include party a_liation (e.g., Democrat or Republican), sexual identity (heterosexual, homosexual, bisexual, etc.), and ethnic identity. Some identities or social categories involve both role and type. For example, mother is a role, but nonetheless we expect certain beliefs, attitudes, values, preferences, moral virtues, and so on, to be characteristic of people performing the role of mother (understandings that may change through time.) On the other hand, some role identities, which mainly but not exclusively comprise occupational categories, have few if any type features associated with them (for example, toll booth collector). Lastly, collective identity brings the Self-Other relationship to another stage and its logical conclusion identification. The latter represents a cognitive process in which the distinction between the two becomes blurred and sometimes even transcended, namely Self is categorised as Other. Identification tends to be issue specific and always involves extending the boundaries of the Self to include the Other. In this respect, collective identity uses both role and type ones and at the same time goes beyond their limits. It builds on role identities since both depend on the mechanism of incorporating the Other into the Self, which generates a socially constituted Me. The essential difference refers to their contrasting objectives: role identities use the mechanism to enable the Self and Other to play distinct roles, whereas a collective identity aims to merge the two entities into a single one. In the case of type identities, the situation is slightly more complicated. Collective iden tity builds on them as both require shared characteristics, but not all type identities are collective because not all involve the identification process Especially over the past decade, the discipline of IR has experienced what Yosef Lapid and Friedrich Kratochwil (1996) called the return of culture and identity in IR theory. The 1950s and 1960s had brought for IR scholars an intense preoccupation with the role of national identities, particularly in the context of early EU integration studies by Karl Deutsch and Ernst Haas. Unfortunately, later on the concept became once again marginalised in favour of more objective and scientific approaches like neorealism and rational choice. The recent return of identity does not necessarily imply that the current use of the term may be considered equivalent to that of the 1950s-1960s. Rather, since the late 1980s, a new strand of theory regarding identity has emerged and slowly developed, which rejects essentialist notions while emphasising the constructed nature of social and political identities (see for example McSweeney, 1999; Albert et al., 2001). One of the works that is most often cited when discussing the relationship between state identity and foreign policy is that of David Campbell. In his 1992 book Writing security, he challenges the traditional narrative of asking how foreign policy serves the national interest and instead examines how the practice of foreign policy helps write and rewrite state identity. According to Campbell Danger is not an objective condition. It is not a thing which exists independently of those to whom it may become a threat (Campbell 1992: 1). As danger is an effect of interpretation (Ibid: 2), nothing is more or less dangerous than something else, except when interpreted as such. In terms of the non-essentialistic character of danger, the objectification and externalization of danger need to be understood as an effect of political practices rather than the condition of their possibility. As danger is never objective, Campbells argument continues, neither is the identity which it is said to threaten. Rather, the contours of this identity are subject to constant (re)writing, and foreign policy is an integral part of the discourses of danger which serve to discipline the state. Campbells theory a declared challenge to conventional approaches which assume a settled nature of identity is thus that state identity can be understood as the outcome of practices assoc iated with a discourse of danger. We speak about the foreign policy of the state x or state y, thereby indicating that the state is prior to the policy, but Campbells creative insights come to challenge such a position. He explains that national states are paradoxical entities which do not possess prediscursive stable identities (Ibid: 11). As states are always in the process of becoming, for a state to end its practices of representation would be to expose its lack of prediscursive foundations'(Ibid: 11). Ironically, the inability of the state project of security to succeed is the guarantor of the states continued success as an impelling identity. The constant articulation of danger through foreign policy is thus not a threat to a states identity or existence: it is its condition of possibility'( Ibid: 12). Building on such theoretical understanding, this paper offers an account of the processes through which Romanian state identity and its insecurities are produced, reproduced, and potentially transformed.