Global Car Industry Facing Recession

The Global Car Industry Facing Recession and a Credit Crisis Case study Reference no 309-032-1 This case was written by Nick S Potter, Birmingham Business School, University of Birmingham. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources.  © 2009, Birmingham Business School, University of Birmingham. No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of the copyright owner. cch the case for learning Distributed by ecch, UK and USA www. ecch. com All rights reserved Printed in UK and USA North America t +1 781 239 5884 f +1 781 239 5885 e [email  protected] com Rest of the world t +44 (0)1234 750903 f +44 (0)1234 751125 e [email  protected] com 309-032-1 ___________________________________________________ The Global Car Industry: Facing R ecession and a Credit Crisis N. S. Potter â€Å"The change that has hit the world economy is of a critical scale that comes once in a hundred years† said Katsuaki Watanabe, announcing Toyota’s first annual loss in its 71 year history.The firm said it expected a loss of 150 billion Yen (? 1. 1 billion) in yearly operating profits and confirmed that vehicle sales in the U. S. had fallen 37% in December 2008 and that production would halt for a total of 14 days from January to March 2009 in an effort to reduce inventories. Meanwhile, in America, outgoing President George W. Bush threw the struggling car makers a $17. 4 billion lifeline to stave off immediate bankruptcy and Canada became the second G8 economy to bail out its car industry. In the UK, Tata approached the government for up to ? billion to help save Jaguar and Land Rover and announced at the same time that it was sponsoring the Ferrari F1 team in 2009. The Global Car Industry in 2009 – An Overview. Car manufacturing has been described as â€Å"the industry of all industries†. Strong inter dependence therefore exists between the economies of many countries and industry performance. Governments rely on the sector as well as related suppliers and services to a greater or lesser extent in terms of employment, taxation, GDP and balance of payments. Car makers equally, require growing economies with rising levels of disposable income and consumer confidence.The events of 2008 also demonstrated the industry’s reliance on freely available credit to finance the purchase of its products. â€Å"Credit availability has been the biggest issue in our industry this year†, according to Mike Jackson, Chief Executive of Auto Nation, the largest car dealer in America. This case was prepared by N. S. Potter of Birmingham Business School and is intended as a basis for classroom discussion rather than to illustrate correct or incorrect handling of any administrative situations â₠¬â€œ N. S. Potter, 2009. 2 309-032-1The credit crisis has affected economies globally and reduced activity in a wide range of industries, notably housing and the fall in property values, coupled with the fear of unemployment has reduced consumer confidence around the world. Many analysts now think that car sales will not recover until 2010 and may take until 2013 to return to 2007 levels of 16. 1 million vehicles, (CSM Worldwide, Detroit). Governments must balance these economic considerations with environmental issues, as well as the aspirations of consumers in terms of mobility and materialism.Politicians need to find a compromise between these opposing forces and the ways in which they impact on the voting intentions of different groups in their respective electorates. The effects of oil price volatility, the credit crisis and subsequent recession on the environment appear to be mixed. Some environmentalists are concerned that economic issues will dominate the political agenda, w hile others point out that people are flying and driving less and that the car industry in particular, will be forced to spend heavily on developing more eco friendly products.Core industries base strategic decisions on the car industry as seen in the move by steel makers to site manufacturing facilities in developing countries where car making is starting to take place and demand for commodities was rising rapidly until mid 2008. The car industry may experience only low growth going into the second decade of the 21st century. However, this will be spread unevenly, both between countries and individual companies. One of the key elements driving dynamics in the car industry is ever increasing globalisation.Rapid change is taking place, continually altering industry structure and attractiveness as well as the key success factors necessary for both survival and growth. Japanese companies were forced to manufacture overseas for much of the 1990s due to the continuous appreciation of the Yen and with its currency at a thirteen year high against the dollar in early 2009, Japan has seen exports to America fall by 33. 8% and to the E. U by 30. 8%, (BBC News). 40% of all cars sold by Toyota in the U. S. re currently manufactured in Japan. China and India, with combined populations of two billion, clearly have enormous potential, but appear to be equally vulnerable to world events. Chinese car sales fell by 14. 8% in the year to November 2008, (FT) and sales in India fell by 19. 4%, (Society of Indian Automobile Manufacturers) due to credit problems and high interest rates, beginning to call into question some existing joint ventures as foreign partners scale back investment and concentrate on problems in their own markets. 309-032-1 South America as a whole is set to become a significant market with Brazil now the 6th largest producer in the world, however annual sales fell 16. 9% in the year to December 2008, (Reuters). A new manufacturing facility planned by Honda in Argentina has now been postponed until at least 2010, (Associated Press). Europe has also seen sales plummet during 2008 but has still overtaken the USA to become the largest volume market in the world and East Asian competition has become ever more significant.Tightly defined product segmentation has taken place as traditional markets mature, while the rapid growth of emerging economies has provided opportunities to extend product life cycles on a geographical basis. The pace of globalisation has varied considerably within the triad. Most European car manufacturers have significant positions only within Europe. U. S. companies tend to have major shares domestically and in Europe, while only two major Japanese companies can claim to be truly global.Although the industry is concentrating, no single company is close to dominating the market and in fact seven companies have between 10% and 15% market share. The level of acquisition activity has been reasonably intense but the other ma jor feature of the industry has been the degree of collaborative activity. A variety of alliances and joint ventures have been utilised as a means of growth, as isolating mechanisms and even to circumvent national political issues. In 1980, there were 30 independent car anufacturers, by 2000 this had fallen to 13 and it is predicted that by 2015 the number will have fallen to 10, a situation which could be exacerbated by the global economic situation. The industry value chain is also altering and becoming capability led, as companies focus downstream towards the customer interface where the most explicit value is increasingly being added. The Original Equipment Manufacturer’s (OEM’s) share of total value creation stood at 36% in 2002 and this will fall to 23% by 2015.Despite this, the component manufacturers face similar consolidation pressures with 8000 suppliers in 1998 expected to fall to 2800 by 2015. Technology is changing the upstream supply chain as component su ppliers split into tiers and become total solution providers, often diversifying from previously unrelated industries such as electronics, computer software and aerospace. Companies such as Delphi, Bosch, Continental, Lear, Siemens, Thyssen Krupp and Visteon will become dominant. 4 309-032-1 Summary of main conclusions †¢Demand will fall in Europe and America in 2009 and will be flat in China, although the second half of the year may see a partial recovery. Supply will continue to exceed demand as production capacity currently stands at 90 million units. †¢ Europe and China have become the primary battlegrounds for car manufacturers, with Germany currently the biggest single market. †¢ Eastern Europe and South America offer limited growth as well as high risk but will become significant markets by 2015 †¢ Apart from China and India, the ASEAN countries represent the greatest opportunity and challenge to Japanese, U.S and European manufacturers, as long as structu ral and governance reforms continue. †¢ Significant demand fluctuations will exist between country markets. †¢ Toyota, Honda and Nissan are truly global competitors and this trend will continue, with around seven companies or collaborative groupings eventually dominating the world market, each making between 5-7 million vehicles annually. †¢ The industry is driven by cost and technology with political and ecological issues as a significant underlying factor and this holds for product and process development. †¢Manufacturers will integrate forward vertically into their distribution channels, diversify and out source traditional activities. †¢ Collaboration between manufacturers, suppliers governments will become increasingly prevalent. †¢ Marketing strategies will focus on creating lifetime customer relationships, but in the short term, availability of finance will be a critical issue. 5 and even national 309-032-1 †¢ Time to market for new models w ill continue to reduce from 3. 4 years in 1995 to 2. 2 years currently and this may become a critical issue as companies respond to rapid changes in consumer preferences.Global Car Industry – Major Forces and Impacts It is clearly difficult to generalise due to the enormous variation between countries in the various stages of their development. It is however reasonable to conclude, that the car industry within any given country is subject to opposing political forces. †¢ As a primary industry, it is a major contributor to GNP, balance of payments and employment. Component suppliers and service providers represent important secondary industries. Total global industry employment was predicted to reach 11. million by 2015, prior to the 2008 crash, with 78% of those jobs generated by suppliers. This will heavily influence government policy during 2009/10 with governments across the world expected to support the car industry. †¢ Taxation of purchase and use represents si gnificant government revenue. It is estimated that global industry revenue will have reached 903 billion Euros by 2015. †¢ Transport is a major part of any countries infrastructure and is necessary to the process of wealth creation. †¢ Congestion and safety are becoming increasingly important issues. †¢Pollution and sustainable energy policies could dominate the industry in future. Targets to reduce CO2 emissions and fuel consumption are making alternative fuels, such as natural gas and electricity more attractive. †¢ The issues surrounding inward and outward direct investment affect strategies adopted by companies as they seek to invest and grow in new markets. Cost of labour as a factor of mobility is increasingly debated but government’s attempt to attract investment with a range of grant aid as well as subsidising domestic companies for a variety of reasons, including national prestige. 6 309-032-1Demand for cars is very closely linked to a given count ry's economic performance and this can be viewed in two separate contexts :1 – The wider process of the economic development of a country which results first in selective ownership, leading gradually to mass market volumes. 2 – Short term life cycle fluctuations within mass volume markets leading to delayed purchases or customers changing segments. Consumer confidence is a key factor in the purchase decision as the product price is significant in relation to most people's income. For every 1% increase in average earnings, car ownership rises by 2%. 7 309-032-1Table 1 – World Economic Outlook 2009 – IMF 2006 2007 2008 2009 Original World output 5. 1 5. 0 3. 7 2. 2 Advanced economies 3. 0 2. 6 1. 4 United States 2. 8 2. 0 Euro area 2. 8 Germany 2008 2009 2007 2008 2009 Revised Current forecast -0. 2 -0. 8 4. 8 2. 5 2. 4 -0. 3 -0. 1 -0. 8 2. 6 0. 3 0. 3 1. 4 -0. 7 -0. 1 -0. 8 2. 3 0. 4 -0. 5 2. 6 1. 2 -0. 5 -0. 1 -0. 7 2. 1 0. 1 — 3. 0 2. 5 1. 7 -0. 8 -0. 2 -0. 8 1. 7 0. 3 -0. 3 France 2. 2 2. 2 0. 8 -0. 5 -0. 1 -0. 6 2. 2 -0. 4 0. 2 Italy 1. 8 1. 5 -0. 2 -0. 6 -0. 1 -0. 4 0. 1 -0. 4 -0. 1 Spain 3. 9 3. 7 1. 4 -0. 7 — -0. 5 3. 2 0. 2 -0. 6 Japan 2. 4 2. 1 0. 5 -0. 2 -0. 2 -0. 7 1. 4 -0. 3 0. 4United Kingdom 2. 8 3. 0 0. 8 -1. 3 -0. 2 -1. 2 2. 9 -0. 9 -0. 5 Canada 3. 1 2. 7 0. 6 0. 3 -0. 1 -0. 9 2. 8 — 1. 0 Other advanced economies 4. 5 4. 7 2. 9 1. 5 -0. 2 -1. 0 5. 0 1. 8 3. 0 5. 6 5. 6 3. 9 2. 1 -0. 1 -1. 1 6. 1 2. 2 4. 4 -0. 1 -0. 8 9. 0 8. 3 Newly industrialized Asian economies China 11. 6 11. 9 9. 7 8. 5 11. 3 7. 9 8. 0 6. 6 5. 1 -0. 3 -1. 0 8. 5 5. 9 5. 7 Africa 6. 1 6. 1 5. 2 4. 7 -0. 7 -1. 3 †¦ †¦ †¦ Brazil 3. 8 5. 4 5. 2 3. 0 — -0. 5 6. 2 3. 9 3. 2 Central and eastern Europe 6. 7 5. 7 4. 2 2. 5 -0. 3 -0. 9 †¦ †¦ †¦ Commonwealth of Independent States 8. 2 8. 6 6. 9 3. 2 -0. 3 -2. 5 †¦ †¦ †¦ 7. 4 8. 1 6. 8 3. 5 0. 2 -2. 0 9. 5 5. 9 5. 8 9. 8 9. 3 7. 8 6. 3 8 . 9 6. 6 6. 0 Emerging and developing economies2 Russia India 8 0. 1 0. 6 309-032-1 The important variable is private consumption. Growth and wage levels are expected to be slower in real terms in the immediate future. Fiscal policies may eventfully result in higher taxation, particularly to service government borrowing, some of which will be indirect and therefore industry specific. Interest and exchange rates are also important as they affect disposable income. Interest rates have been slashed by the majority of central banks in developed countries and at the beginning of 2009 ranged from 0. % in Japan to 2. 5% across the Euro zone. Currency markets will probably continue to be volatile during 2009 as analysts assess which governments are following policies aimed at coming out of recession earlier than other nations without driving borrowing to unsustainable levels. It is likely that persistently high levels of unemployment and reduced job security will keep consumer confidence lo w and lead to an increase in the savings ratio. This could impact in several ways on the replacement patterns of high value consumer durables. Replacement may be delayed, satisfied in the second hand market or by trading down when buying new.Global growth is expected to continue to moderate from the peak in 2004 but the speed of the decline in output will vary from region to region as seen in table 1. World trade will slow down, from growth of 10. 1% in 2004, to 5. 0% in 2007 and a forecast of 2. 4% in 2009. Labour productivity and commodity prices are also key issues. Global demand for oil has exceeded supply for much of 2008 with prices peaking at $147 per barrel before plummeting to $5 in early 2009 and in the longer term, China has gone from being a net exporter of oil in 1995 to a position where it is predicted that 55% of its demand will be imported by 2030.There are clear linkages with economic factors as wealth generally leads to raised expectations. In less developed market s, the consumer's initial aspiration is simply for a convenient means of transport over longer distances and in this respect, the Nano from Tata may provide particular advantage. Increasing levels of wealth and confidence bring demands for more sophisticated equipment, greater choice of versions, niche products, passenger safety and consideration of the environment. 9 309-032-1 The degree of nationalism within country markets can also be significant and clear example of this is the German market where buyers display a clear preference for German cars. It is forecast that subsequent generations of buyers will think less along national lines as education, travel and integration all increase. This process will also be accelerated by local production, as demonstrated by Toyota, Nissan and Honda in the UK and VW in China. The need for transport is almost infinitely flexible in relation to its ease and cost. Governments have the task of balancing this need against the economic and ecologi cal considerations as well as the prospect of increased leisure time for many people.There are currently 500 million cars on the road throughout the world and by 2030 this figure is expected to rise to 1 billion with a further 500 million lorries and motorcycles. Road transport accounts for 20% of the global CO2 output and this figure could rise as traffic increases in developing countries. Technology represents another significant industry specific driver and can be considered under process cost, ecological pressure and increased consumer demands for new products increasing choice, comfort, performance and safety.Smart cards implanted in engine management systems will be capable of measuring the quantity of polluting emissions with the results used to prepare individual tax bills. Road side sensors or global positioning satellites will charge heavily for road use during congested periods with reduced or waived charges at other times of the day. The use of robots for assembly is inc reasing and it is estimated that 40% of the world's 610,000 robot population are used in the car industry. This is already affecting the propensity of companies to relocate in areas of low labour cost, as the cost advantage is being eroded.Product development issues will include fuel source, the balance between design and aerodynamics, automation of driver systems, satellite positioning and matching vehicles or versions to individual lifestyles. Process development will be concerned with flexibility, quality and cost issues. Supplier relationships and internal value chains will change in two significant respects due to these factors :1 – Car manufacturers increasingly lack capabilities in relation to new technologies and are out sourcing total solution provision to first tier suppliers, who are in 10 309-032-1 urn responsible for relationships with second and third tier companies. 2 – Process technology is becoming so specialised that manufacturers are having to develo p in house capabilities in order to supply their exact requirements. It is also forecast that differentiation and the complexity of technology will tie customers to authorised service dealers throughout the life of the vehicle. This will alter the relationship between margins made on the sale of a car and those subsequently derived from servicing and the sale of replacement parts. Outlook for the Global IndustryThe production and supply of cars has been concentrated in the three zones of the triad until recently, however there will be a degree of fragmentation over the next ten years as Eastern Europe, South America, China and India develop both in terms of consumption and production. The Chinese government welcomes foreign direct investment and has relaxed rules for setting up businesses and realises that foreign capital and 21st century technology can help the country to industrialise more quickly. There are five major indigenous car manufacturers in China as well as many smaller companies.Their main problem is a lack of both brands and designs. Shanghai Auto is number one in the domestic market and ranked at 373 in the 2008 Fortune Global 500, but still only produces 800,000 cars a year through joint ventures with GM and VW and this provided the rationale for the purchase of MG Rover assets and the 2007 merger with the Nanjing Automobile Company . Table 2 – 2009 vehicle sales forecasts – 2007 versus 2009 (millions of cars) Country New 2009 forecast Original 2007 forecast % Decrease USA 14. 3 18. 6 23. 0% Western Europe 14. 0 16. 9 17. 0% China 8. 0 7. 9 unchanged Japan 4. 8 6. 0 20. 0%Eastern Europe 5. 8 3. 6 India 1. 8 2. 1 14. 0% South Korea 1. 6 2. 1 24% (61% increase) Sources: Ernst and Young, Fortune, SMMT, Business Mirror, FT & Reuters 11 309-032-1 It can clearly be seen that the short term growth opportunities are in Eastern Europe and possibly China. The big European and North American producers face massive structural problems, pensio n deficits, overcapacity, mature markets and falling prices. Emerging markets offer some relief but competition will be at least as fierce and may require a move to smaller, lighter cars and this will favour some manufacturers more than others.Dongfeng Nissan and Geely Automobile in China are both forecasting sales increases during 2009, based on their range of small, inexpensive models. The motor car will increasingly be a target for environmentally motivated taxation and legislation. Industry rationalisation is long overdue, but government and unions in some countries will resist any attempt by manufacturers to cut large numbers of jobs and this tension will be a feature of 2009/10 as governments attempt to counter rising unemployment and balance public finances.Much of the cost pressure being felt by OEMs is being passed onto suppliers or eased by relocating manufacturing and sourcing to Eastern Europe and China. Currently, 33% of all suppliers have manufacturing facilities in Ea stern Europe and 17% in China and this trend will continue with Western Europe and the U. S. adding value through marketing, engineering and design, though this raises the issue of technology theft and intellectual property rights. Russia, Poland, Hungary and the Czech Republic are the most important sales markets in Eastern Europe and also represent important manufacturing locations along with Slovakia and Slovenia.China is now VW’s second largest sales market after Germany and General Motors generated 44% of global earnings from the same country, both companies plan a series of new vehicle launches during 2009. Russia is also a potentially large market with 144 million people and car ownership only one third of the level in Germany. Sales have doubled to over 3. 5 million units a year, (P. W. C. ) but the forecast for 2009 is a 15% reduction as the effect of lower oil prices affects the economy.German and Japanese cars are in high demand, though the government has decreed t hat 80% of officials should drive Volgas with the remaining 20% being supplied with BMWs built in Kalingrad and Fords made near St Petersburg. The Russian OEMs such as Moskvitch, Gaz and Ural tend to focus on the largest part of the market which is for cars costing less than $4000. Other manufacturers with plants already there, include Renault, GM and VW, with Nissan, Hyundai, Peugeot and Mitsubishi currently constructing new facilities, (Business Week). Renault has become partners with Avtvaz, paying $1 billion for a 12 309-032-1 5% stake in early 2008 and the next phase, according to PWC will be the emergence of a powerful components industry to supply as foreign brand cars manufactured in Russia are forecast to rise to 2 million by 2012. Ford, VW and Renault have all announced extended plant shutdowns during the early part of 2009, (New York Times), however PWC still forecasts that despite these short term difficulties, sales will continue to rise to six million units by 2014 and analysts at Russian agency Avtostat, predict that Russia will be the third largest car market in the world by 2012, behind only the US and China.Eastern Europe is improving in terms of productivity and competitiveness, is close to major EU markets and combines low wages with a skilled work force. Political pressure will focus on the production of cars suitable for export markets in order to earn currency, but government attitudes to foreign direct investment may improve if Russia joins the WTO. Collaboration between Eastern and Western European companies is growing rapidly, based on the mutual benefits of technology/skills transfer and market entry.Ironically, economic measures aimed at strengthening local currencies in order to reduce inflation, are making it more difficult for exporters to remain competitive. GM and Ford have invested in low volume production but many of the other OEMs have adopted a more cautious approach, although Toyota, Daewoo, Mitsubishi and Renault are succ essfully importing cars. The level of global sales and therefore production in 2009 is very difficult to forecast as it depends largely on how quickly financial institutions make credit available at somewhere close to previous levels. 0. 2 million cars were manufactured in 2007, falling to 67. 9 million in 2008, (J. D. Powers). Honda forecasts that European production will fall by over 12. 0%, but increase by 5% in China during 2009. VW expects the whole year to be difficult, particularly the first two quarters. PWC is forecasting a 17% fall in sales in the US, 12% across Europe and 5% in Asia Pacific. The firm remains upbeat about 2010, predicting a recovery in global sales of up to 15%. 13 309-032-1 Table 3 – Preferred Manufacturing Locations Country Very attractive Attractive Total Czech Republic 0% 44% 94% China 71% 18% 89% Hungary 40% 45% 85% Poland 36% 46% 82% USA 36% 33% 69% Slovakia 40% 28% 68% South Korea 16% 48% 64% Mexico 21% 39% 60% Western Europe 18% 23% 41% Indi a 15% 23% 38% Brazil 14% 21% 35% Ukraine 15% 18% 33% Romania 10% 23% 33% Slovenia 16% 14% 30% Bulgaria 5% 19% 24% 11% 10% 21% Argentina 5% 11% 16% Thailand 5% 8% 13% Vietnam 0% 10% 10% Russia 4% 4% 8% Australia 1% 3% 4% Croatia 1% 1% 2% Yugoslavia 1% 0% 1% Japan Source: Ernst and Young Competitive Analysis The global market leader during 2007 in terms of volume was GM which produced 9. 5 million vehicles compared with Toyota at 8. 5 million, however adding Daihatsu, (a wholly owned subsidiary) brings Toyota’s total production level with GM and as can be seen in the table overleaf, Toyota now produces more cars than GM when commercial vehicle sales are discounted. It is also worth noting that if the production figures for Renault with Nissan are combined, they climb to fifth place ahead of Honda. 14 309-032-1 Table 4 – World Ranking of Manufacturers 2007 Rank Group Total (Millions) Cars Total Vehicle Production 72. 18 56. 30 1GM 9. 34 6. 26 2 Toyota 8. 53 7. 21 3 VW 6. 27 5. 96 4 Ford 6. 25 3. 56 5 Honda 3. 91 3. 87 6 PSA 3. 46 3. 02 7 Nissan 3. 43 2. 65 8 Fiat 2. 68 1. 99 9 Renault 2. 67 2. 28 10 Hyundai 2. 62 2. 29 11 Suzuki 2. 60 2. 28 12 Chrysler 2. 54 0. 75 13 Daimler 2. 10 1. 33 14 BMW 1. 54 1. 54 15 Mitsubishi 1. 41 1. 10 16 Kia 1. 37 1. 29 17 Mazda 1. 28 1. 16 18 Daihatsu 0. 86 0. 71 19 Avtovaz 0. 73 0. 73 20 FAW 0. 69 0. 69 21 Tata 0. 59 0. 24 22 Fuji 0. 58 0. 51 23 Chana Automobile 0. 54 0. 54 24 Beijing Automotive 0. 45 0. 45 25 Dongfeng Motor 0. 44 0. 44Source: International Organisation of Motor Vehicle Manufacturers (OICA) It is notable that four firms in the top 50 produce fewer than 100,000 cars a year and fifteen make fewer than 250,000 cars and the top ten Chinese companies only produce around 3 million cars between them, while Tata has a long way to go before it becomes a volume player. 15 309-032-1 Table 5 – World Vehicle Production by Country in 2007 Country Total Vehicle Production (Millions) Japan 11. 60 USA 10. 80 PR China 8. 90 Germany 6. 20 South Korea 4. 10 France 3. 00 Brazil 2. 95 Spain 2. 90 Canada 2. 60 India 2. 30 Mexico . 10 UK 1. 75 Russia 1. 65 Italy 1. 30 Thailand 1. 25 Turkey 1. 10 Iran 1. 00 Czech Republic 0. 95 Belgium 0. 85 Poland 0. 80 Source: International Organisation of Motor Vehicle Manufacturers (OICA) Corporate Strategies Diversification is still common within the automotive industry, however the most prevalent strategy is forward integration. Most of the added value is now derived from finance, servicing and the sale of spare parts. Growth by acquisition has been used by G. M. , Fiat, Tata and VW to overcome mobility barriers and gain presence in the upper luxury segments, although G.M. in particular is more focused on the U. S. market in this respect. Toyota and Honda conversely, chose organic growth by establishing the Lexus and Acura brands organically. BMW now has its own range in the important four wheel drive market 16 309-032-1 and it’s acquisition of Rolls -Royce leaves them with a more sustainable portfolio, including Mini, which it retained when it sold MG Rover. Mercedes on the other hand, is relying on brand extension and the rebirth of the Maybach brand to increase volume since the end of its ill fated merger with Chrysler.The successful merger between Renault and Nissan raises question about the two remaining European independents, PSA and Fiat. Collaboration As markets mature, manufacturers are being forced to cut costs and increase scale. The manufacturing process has had most of the possible cost squeezed out in the last ten years. Companies already buy components from each other or share development costs, for example the alliance between PSA and Renault to supply gearboxes. Collaboration is based on mutual need and can either be used to spread costs or as a market entry strategy.There appears to be a shift of emphasis from the interchange of resources towards combining, as well as a more open attitude by Western companies t o close co-operation. It is becoming multi dimensional as manufacturers analyse their value chains, not only with a view to outsourcing, but on a geographical basis. Relocation, rationalisation and new bases for supplier relationships will dramatically alter the profile of the entire industry by 2010 There are a number of parallel developments occurring:†¢ The component supply industry has tiered, with Tier 1 suppliers becoming solution providers.They develop and supply whole vehicle systems such as brakes, engine management, steering and suspension. †¢ These suppliers have becoming knowledge partners and have taken on the role of managing relationships with tiers 2 and 3, who have found themselves isolated from the car manufacturers. †¢ Technology is increasingly complex and from outside the traditional automotive industry. Electronics, currently constitute around 23% of the value of a car, this will rise to 40% by 2010. †¢ As technology becomes more intelligent , components can be tailored to a wider range of applications.Software can now be used to alter the power and 17 309-032-1 torque profiles of diesel engines using inbuilt codes, offering the opportunity to use one engine across a wide range of model sizes. It could also be combined with GPS to automatically limit speed to the legal maximum. †¢ For this reason, specialist suppliers are achieving greater economies of scale than even the largest OEMs can hope to achieve in house. †¢ Car makers are reducing the number of varying components even at platform level, but increasing consumer choice by offering more variants in terms of trim and accessories. They are recognising the concept of â€Å"needlessly unique† components, where the cost of developing many alternatives does not raise customer perceptions of value. †¢ Components which the customer perceives to be invisible will be standardised. These will include chassis, steering, driveline and braking systems. Ot hers will be made common where possible, including instruments, controls and airbags. Only variants required to be different by the customer will be specific to models and examples of these include paintwork, exterior trim, fascia and glass. †¢Component suppliers are being forced to grow, in order to stay within cost targets set by their customers. Suzuki insists that all main suppliers with fewer than 100 employees must merge with other suppliers. Global car makers logically require global component suppliers. †¢ Car companies will increasingly become assemblers as they turn their main strategic attention towards, design, marketing and their distribution channels. Technology and Research and Development It is becoming more difficult to sustain competitive advantage through product differentiation.OEMs however, are continuing to invest heavily in research and development in an attempt to attract customers and no detail is seen as insignificant. Audi claims that its new V10 R8 is the first car in the world with all LED headlamps and rear-view mirrors have become high tech, with power folding, photo chromic glass and vision cameras aimed at pedestrian or occupant detection. It is likely 18 309-032-1 however that the technology focus will increasingly be on new fuel sources and lower pollution levels as firms attempt to anticipate future customer demands.Pollution and Resource Consumption Pollution has evolved from a series of localised problems into a global issue. The range of pollutants is also increasing and now includes CO2, CO, NOx, SO2, CFC, Methane and Nitrates. Automobiles currently have 80% of the global personal transport market and 55% of goods transportation. Their effect on the natural environment is therefore significant and ranges from 5% of total SO2 emissions up to 70% of all CO2 emissions. Noise and waste products also contribute to environmental deterioration.More than 500 kg of every car produced ends up in land fill sites, accounti ng for 4% of total rubbish weight. Companies are beginning to take these issues seriously as it is probable that eventually they will bear responsibility for disassembly and total recycling. Renault for example spends 30% of total R & D budget and employs 1000 people on environment related issues. This is shared between compliance with future regulation and attempting to gain advantage over competing companies.The Euro 96 norms mean much tighter controls over emission levels and these are mirrored by U. S. legislation. No detail is too small to escape attention in this constant search for technological advantage. In Europe for example, 180,000 tonnes of fuel evaporates every year during the refuelling process and fuel tanks are being redesigned to eliminate the problem. Reduction in fuel consumption is a major research area and engines are being developed with reduced friction, more efficient combustion and better ignition.Diesel cars remain an alternative and work also continues on small electric cars. Engines capable of using renewable fuels such as Soya oil have been in existence since the 1970s, but unless governments deliberately favour these alternatives via changes in taxation policy, they will only slowly gain acceptance. There are encouraging signs however, in Sweden 66% of orders for the new Saab 95 are for the version that runs on 85% bio ethanol derived from sugar cane and British Sugar is considering building a bio ethanol plant in the U.K. Hybrid vehicles running on oil 19 309-032-1 based fuel and electricity are gaining in popularity and fuel cell cars will be on the road by 2020 Table 6 – World Commodity Prices – 2000 to 2010 Commodity prices, 2000-2010 Percent change Forecast Commodity 2000-2005 -26. 4 1. 8 33. 9 1. 0 57. 2 -10. 8 -4. 2 3. 1 33. 9 97. 8 -23. 1 -10. 0 29. 1 17. 0 22. 4 -19. 1 -4. 3 12. 7 20. 0 28. 4 -21. 5 -1. 3 10. 0 25. 6 35. 2 -23. 3 -0. 3 18. 4 26. 1 50. 9 -28. 9 2. 6 22. 7

Mission and Vision Statement Essay

A mission statement is a formal short written statement of the purpose of the company or organization. The mission statement should guide the actions of the organization, spell out its over all goal, provide a sense of direction, and guide decision making. It provides the framework or context within which the company’s strategies are formulated. A mission statement talks about the present leading towards the future. Your mission statement may change, but it should still tie back to your core values, customer needs and vision. A vision statement takes into account the current status of the organization and serves to point the direction of where the organization wishes to go. As means of setting a central goal that the organization will aspire to reach, the vision statement helps to provide a focus for the mission of the corporation, business or non profit entity. A vision statement talks about your future. As your organization evolves, you might feel tempted to change your vision. However, mission or vision statements explain your organization’s foundation, so change should be kept to a minimum. What are the functions of mission statement? It lists the broad goals for which the organization is formed. Its prime function is internal; to define the key measure or measures of the organization’s success and its prime audience is the leadership, team and stockholders. What are the functions of vision statement? It lists where you see yourself some years from now. It inspires you to give your best. It shapes your understanding of why you are working here Purpose The mission statement guides the day-to-day operations and decision-making of the organization. It helps in tactical planning and â€Å"rallying the troops† around a common near- to medium-term goal. The mission statement helps members of the organization get on the same page on what they should do and how they should do it. The vision statement is, in a sense, loftier. It outlines the worldview of the organization and why it exists. It attracts  people — not just employees but also customers and vendors — who believe in the vision of the organization. What to Include in a Mission Statement When developing a mission statement, it should be seen that the following questions are answered: What do we do today? For whom do we do it? What is the benefit? Features of an effective mission statement are: Purpose and values of the organization What business the organization wants to be in (products or services, market) or who are the organization’s primary â€Å"clients† (stakeholders) What are the responsibilities of the organization towards these â€Å"clients† What are the main objectives that support the company in accomplishing its mission What to Include in a Vision Statement When developing a vision statement, it should be seen that the following questions are answered: What do we want to do going forward? When do we want to do it? How do we want to do it? Features of an effective vision statement include: Clarity and lack of ambiguity Describing a bright future (hope) Memorable and engaging expression Realistic aspirations, achievable Alignment with organizational values and culture Time bound if it talks of achieving any goal or objective

Hershy chocolate bar Research Paper Example | Topics and Well Written Essays - 2250 words

Hershy chocolate bar - Research Paper Example ire of humans to find something sweet to consume dates back to primitive times.Chocolate traces its history to the ancient Romans, Egyptians, Greeks and the Chinese. However, during that period, it was considered a luxurious treat that only few could afford. It evolved from ancient forms to the modern industry centered in Europe. It evolved because of the increased availability of sugar. The increased availability transformed it from an ancient delight into a main modern confectionery industry. The modern industry produces a relatively cheaper food that many people enjoy. This paper will, therefore, analyze the strengths and weaknesses, marketing strategies, consumer behaviors, as well as, the branding strategies that may be associated with Hershey Foods Corporation. The first confectioners in United States were the Dutch bakers of New Amsterdam which were later named New York. There were about 1000 manufacturers in the US at the beginning of the twentieth century. They offered employment to about 27000 workers through which they managed to register total sales of about $60million annually. Until the 1900s, the common equipments that would be used in these enterprises were mainly of kettles, shallow trays, hand cutters, starch boards and hand printers. Compared to the current equipment most of these equipment could be termed inefficient. Efficiency increased with the introduction of European candy manufacturing inventions. They enabled production of candy in large quantities at a more pocket friendly price (Schiffman et al, 2006). This greatly improved sanitary conditions in the manufacturing industries, especially, to the candy manufactures. Besides, the increase in production played a significant role in meet the growing demand for chocolate. The First and the Second World War also contributed to the mass production of candy considering candy was consumed by the armies in the war fields. In addition, the many improvements in the candy industry making led to it

Quality Management Questions Assignment Example | Topics and Well Written Essays - 1750 words

Quality Management Questions - Assignment Example An organization should understand that quality involves meeting and exceeding dynamic needs of all the groups. For example, the needs of consumers may be met by providing goods and services that are in line with customer’s needs and wants. On the contrary, the needs of external customers may be met by carrying out comprehensive marketing research to identify the specific needs of external customers and look for ways of meeting those needs better. Additionally, the needs of internal customers may be met and exceeded by obtaining feedback from the internal customers and applying the feedback obtained to carry out necessary continuous improvements (Evans & Lindsay, 2011). Edward Deming put forth the fourteen principles of effective quality management. Among the four major Deming philosophies that may be applied to improve learning and performance in the classroom, including the use of training on the job to ensuring that there is continuous improvement throughout the learning process, creation of constant of purpose, education implementation, and self-improvement. The philosophy of training on the job may be employed in the academic environment to ensure that learning and classroom performance has been improved. Learners should be equipped with the foundation knowledge to prepare them for intermediate and advanced areas of knowledge. Further learners should be allowed to form teamwork so that they can learn from each other. For example, learners may be given an opportunity to interact and discuss issues that they had learned in the classroom so that they can help each other to understand concepts that they didn't capture well in the classroom (Blanken ship & Peter, 1999). The second philosophy involves continuous improvement. This philosophy may be employed to improve performance through utilization of various tools in evaluating performance to determine whether there are some improvements.  

Arthur Miller Essay Example | Topics and Well Written Essays - 1250 words

Arthur Miller - Essay Example This essay â€Å"Arthur Miller† describes the career of the famous American author who helped introduce a new approach to theater following World War II. Although theater had already begun to focus on realistic portrayals, Miller introduced a depth of field previously unsuspected. His plays focus on the stories of everyday Americans struggling and often not quite reaching the quintessential American Dream. In these presentations, he explores the various social issues involved, such as the changing American landscape and new attitudes of women, while he also reveals the very human personal weaknesses of his characters as they struggle to attain a quality of life woefully out of their reach and/or completely destructive to the family left behind. More than simply focusing on a single individual, Miller’s plays also tend to have a broad-reaching appeal, addressing political and social issues he saw around him as well as remaining true to the original context. With an under standing of the various types of work he has engaged in, it is possible to discuss the various aspects of Miller’s work that have made him famous some of which are the reasons he stands out to me as being a particularly outstanding author. Miller is most widely known for his work as a playwright, but he produced some notable works in other areas as well. When he first began working in New York, Miller also supported himself by writing scripts for various radio programs like Columbia Workshop (CBS) and Cavalcade of America (NBC).

The Paper Tiger Reasons for Legalizing Drugs Essay

The Paper Tiger Reasons for Legalizing Drugs - Essay Example Legalization arguments are paper tigers that, when confronted by reason, leave no doubt that drugs should not be legalized. Advocates will often point to our Constitution to justify the stand that all people should be free to ruin their life with a drug habit. Of course while no one but the most radical elements advocate legalization for children, assuming that it only applies to adults stretches the meaning of freedom to the point that it becomes unrecognizable. Adults are not simply individuals living in a vacuum, unaffected by and having no impact on the world around us. People have families, communities, cultures, and societies that they are a part of. A person's freedom of choice must be carefully balanced against societies obligation to protect all of its members. The myth that the abuser is the only victim of drug addiction simply does not apply to the parent who is neglecting their children because they are too high to understand the responsibilities of adequate parenting. Legalization advocates often link the ideal of freedom with ethics. They point to the inherent unfairness and hypocrisy of a government that condones alcohol use but condemns marijuana users to prison or probation. However, this argument merely draws attention away from the real issue. The controversy is not the safety and status of alcohol. The issue should remain focused on the legalization of drugs and not an issue of which drug is better or worse. Proponents likewise point to the unfairness in the application of the drug laws as a reason for legalization. They cite the disproportionate number of minorities and poor in prison for violating the drug statutes. Milton Friedman, a leading legalization advocate, asks, "Can any policy, however high-minded, be moral if it leads to widespread corruption, imprisons so many, has so racist an effect" (P14}. While his sympathy may be admirable, his reasoning is flawed. If police forces are using racism or a policy of corruption to enforce the law, then that is the issue that needs to be addressed. It is not t he drug law; it's the application that needs examined. If a preponderance of murderers on death row are minorities, and they probably are, no one would advocate legalizing murder, and we should not legalize drugs in a misguided effort to correct deficiencies in our enforcement efforts. Our current strategy of enforcement has resulted in a ballooning population of prison inmates, many who are there as either a direct or indirect result of drug addiction. Opponents of strict drug enforcement question whether we can afford the continued incarceration of drug offenders (Currie, P10). The real question is; can we afford not to Crimes resulting from drug use often fall into two categories; the property crime committed to get money to purchase drugs, and the crime committed during an altered state of mind and loss of rational behavior. Bennett tells us that if drugs were legalized, "drug use would soar" (P13). The crimes that result from the drug user's impaired judgment would increase proportionately. But would legalization reduce property crime Advocates would have us believe that the greater access to a legal supply

Business financial management Essay Example | Topics and Well Written Essays - 2000 words

Business financial management - Essay Example In the year 2004, this amount increased by about 9%, while in 2005 it fell by 19%. This suggests that this amount responded as the sum of long-term debt fluctuated. Also, the company's gearing policy, as suggested by above ratio is to maintain a mixed structure of capital and rely on equity funds more than the borrowed capital, because debt demands fixed payment of interest to the lenders whereas dividends are decided by the management according to their future plans. The gearing ratio of Baa plc reveals that the company's debt at market value is about 95% of the total funds invested by the shareholders. It also means that the company has kept the level of debt slightly below the equity capital so as to avoid interest payments. Koch and Shenoy (1999, p18) posit that, "an increase in leverage due to a debt offering will initially provide more cash for possible over investment, but over time the higher interest expense will decrease the cash available for over investment". Hence, the company might have adopted this strategy to keep the interest payment at a minimum level. The gearing policy of the company as illustrated in part A also reflects that the company has opted to continually decreas... In the year 2004, this amount increased by about 9%, while in 2005 it fell by 19%. This suggests that this amount responded as the sum of long-term debt fluctuated. The amount of long-term debt was 49% of the total capital invested in the company for the year 2003, which rose to 53% in 2004 and declined to 52% in 2005. This suggests that about half the company's total capital comes from external sources i.e., lenders and other outsiders. This in turn also reflects the gearing policy of the company to keep the level of long-term debt in the company at a balanced level Also, the company's gearing policy, as suggested by above ratio is to maintain a mixed structure of capital and rely on equity funds more than the borrowed capital, because debt demands fixed payment of interest to the lenders whereas dividends are decided by the management according to their future plans. Part B: Gearing Ratio Baa Plc 2005 Market Value Debt 4,150 = 95% Total Shareholders' Equity 4,374 The gearing ratio of Baa plc reveals that the company's debt at market value is about 95% of the total funds invested by the shareholders. It also means that the company has kept the level of debt slightly below the equity capital so as to avoid interest payments. Koch and Shenoy (1999, p18) posit that, "an increase in leverage due to a debt offering will initially provide more cash for possible over investment, but over time the higher interest expense will decrease the cash available for over investment". Hence, the company might have adopted this strategy to keep the interest payment at a minimum level. The gearing policy of the company as illustrated in part A also reflects that the company has opted to continually decrease the percentage of long-term debt in the total

The paper will discuss how you will use horticulture in the future Term

The will discuss how you will use horticulture in the future. This can include career choices to being a homeowner - Term Paper Example After completion of school, I plan to become self employed through venturing into the horticulture sector. This is the form of agriculture where the farmer ventures into plants that mature within a short period for human use. Horticulture is becoming a popular trend in the globe due to increase in population, which reduces the land available for conventional farming. I will obtain a loan or grant from the government and lease a small piece of plant for farming. I plan to build a greenhouse, which will enable me to control the environment. The green house will enable me to grow a number of fast growing plants that will be sold in the local market. The funds from the sales will cater for personal expenses and service the loan acquired. The information learned from the agricultural class will enable me to select the right crops to plant depending on the demand in the market. Future earnings will be invested towards increasing the size of the green house. The target market will be the local food stores and grocery stores. The benefits of horticulture farming include the increased resistance to disease and natural conditions by the plants. I will ensure that the customers enjoy organic products free from any chemicals. The foods planted in the green house also highly nutritious compared to the foods planted in the open fields. This is because nutrients are not lost to the environment through leaching and erosion. I will practice mixed farming to ensure that nutrients are not used up in the soil. I also plan to rare animals like portray and rabbits to help replenish the nutrients in the soil. Droppings from the animals will help maintain the soil fertility (Shry & Reiley, 2011). Educating the future generation will ensure food security in the future. The youth should be taught how to undertake profitable farming that pays more than white-collar jobs. Smart farming ensures

Business management Essay Example | Topics and Well Written Essays - 2250 words

Business management - Essay Example Various management practices depend on the trust and empowerment that are designed to increase employee assurance to performance objectives and organizational objectives. The scenario of market place and space are rapidly changing since few years. Therefore these changing scenarios have convinced the management of company and shareholders to adopt a new archetype based on new values. For an example, in banking sector new financial products are jumping up in quick speed. These may create several problems and tough times for the management board in order to compete in this global competitive market. The organization cultures need to change according to the change of market place scenario. It involves understanding the current role, current culture. There is need for greater flexibility and speed that can be achieved through employee involvement in the management decision making. Due to high flexibility, employees get motivated to innovate without any kind of bureaucracy. Red tapes and bureaucracy generally aggravates employees and shuts them down. Employee involvement in management decision making is an old idea that has been frequently invigorated by new generation organizations across the globe. For an example, the oldest system of documented of employee participation is a particular document called â€Å"employee suggestion system† established in 1898. The return of nominal investments comes as superior level of employee motivation, productivity, creativity, and commitment that will shift the organization towards success.

Whatever you choice Term Paper Example | Topics and Well Written Essays - 750 words

Whatever you choice - Term Paper Example All these were slaves but had different degree of privilege. The essay gives an account of how the Romans farmed. The main source of labour for the Romans was slaves. The slaves were acquired in three ways. First, through conquest in war, this is whereby many landowners went for war and brought back captives (White 1). The captives were sold to other citizens or worked on the capture’s farm. Second, the slaves were bought from the market. Third, by birth that is children born by the slaves also became slaves (Phillips 221). As earlier discussed, each slave had different degree of privilege for proper administration of the farms. Before the establishment of large-scale farming, Romans practiced small-scale farming. There were different reasons for the adoption of large-scale farming. First, the wars brought a drastic decrease in free labor. Second, many farmers were ruined due to the devastation of Italy by Hannibal (McGeough 99). After the war, the rich citizen bought the land and leased it to the government. The government used the slaves as their main source of labour (White 1). Due to the great competition, the small-scale farmers gave up. The rich farmers improved the fencing and drainage system for more productivity. Water was conserved by building of dams and cisterns. Trees were planted around the farms to act as windbreakers. Romans were among the first people to employ mixed farming. This is because due to the depilation of the farms they became infertile (White 23). Because of this, they used farmyard manure from the farm animals to keep their farms fertile. Where stock was not kept, farmers made compost manure using banana leaves, weeds straw and other rubbish, which do not decay easily. Although they did not have knowledge on nitrogen-fixing bacteria, they knew how to plant legumes (McGeough 97). They had mechanisms to test sourness of the soil though they did not have litmus paper. They employed

Reconstruction after the Civil War Essay Example for Free

Reconstruction after the Civil War Essay Black political activity during the Reconstruction after the Civil War came from the experience of after war slavery or what was called servitude. A strong sense of community grew out of shared racial oppression and contributed to the formation of a political stand for the black freedman. Even though this formation was important it really did not become very strong after the Civil War. Emancipation was confusing to most blacks and the wartime disorder didn’t help the uncertain situation. Freedmen moved very cautiously to explore what changes were happening in their lives. They were more interested in individual measures to enhance their freedom and avoided becoming politically active. One of the freedmen’s first desires was to leave anything having to do with slavery behind. They wanted to define their new status different than the slavery they had known. What many blacks did first after becoming free was to leave the plantation that had enslaved them. Some looked for family and other headed for towns and cities, but most wanted to leave. Autonomy was a key issue that arose out of emancipation. At first the freedmen hoped their needs would be met by the federal government. Inspired by wartime confiscation of planters land, and the promise of the Freedmen’s Bureau, the former slaves waited for their â€Å"forty acres and a mule†. The Freedmen’s Bureau was a temporary agency set up to aid the former slaves by providing relief, education, legal help, and assistance in gaining land or employment and came from the Reconstruction period. The problem of how to reconstruct the Union after the South’s military defeat was won of the most difficult challenges faced by American policymakers. The Constitution didn’t provide any guidelines. The farmers had not anticipated a division of the country into warring sections. Emancipation was a major force for the Northern war aims, but the problem became larger when questions arose on how far the federal government should go to secure freedom and civil rights for former slaves. The debate that followed led to a major political crisis. Advocates of a minimal Reconstruction policy favored quick restoration of the Union with no protection for the freed slaves beyond the prohibition of slavery. Proponents of a more radical policy wanted readmission of the southern states to be dependent on guarantees that loyal men would displace the Confederate higher ups in position of power and that blacks would gain some of the basic rights of American citizenship. The White House wanted the lesser approach and congress endorsed the more radical approach of Reconstruction (Divine, Breen, Fredrickson Williams, 1987, p. 457). The tension between the President and Congress on how to reconstruct the Union began during the war. Lincoln never had a plan for bringing the states back together, but he did take some initiatives that indicated a more lenient and forgiving policy towards Southerners who gave up the struggle and denounced slavery. Lincoln issued a Proclamation of Amnesty and Reconstruction in 1863 that offered a full pardon to all Southerners, except certain classes of Confederate leaders, who would take an oath of allegiance to the union and acknowledge the legality of emancipation (Fitzgerald, 1989, p. 11). This policy was meant to shorten the war. The President hoped that granting pardon and political recognition to oath-taking minorities would weaken the southern cause by making it easy for disillusioned confederates to switch sides. But Congress was unhappy with the President’s reconstruction experiments and in 1864 refused to seat the Unionists elected to the House and Senate from Louisiana and Arkansas. A minority of congressional Republicans, who were strong anti-slavery radicals, wanted protection for black rights as a precondition for the readmission of the southern states. These Republican militants were upset because Lincoln had not insisted that the constitution creators provide for black suffrage. The dominate view in Congress was that the southern states had definitely forfeited their place in the Union and that it was up to Congress to decide when and how they would be readmitted. Congress passed a Reconstruction bill of its own in 1864. The Wade-Davis bill which required that fifty percent of the voters must take an oath of future loyalty before the restoration process could begin (Divine Breen, Fredrickson Williams, 1987 p. 452). Those who would swear that they had never willingly supported the Confederacy could vote in an election for delegates to a constitutional convention. The bill did not require black suffrage, but it did give federal courts the power to enforce emancipation, but Lincoln used a pocket veto and refused to sign. Congress and the President remained stalled on the Reconstruction issue for the rest of the war. But during the last months in office Lincoln showed some desire to compromise. He showed much interest in getting the governments in Louisiana and Arkansas that he started, with the Proclamation of Amnesty and Reconstruction in 1863, to gaining full recognition but Lincoln was warming up to the ideal of including black suffrage in all of this. Sadly Mr. Lincoln died before anyone knew the outcome of the struggle between congress and this man. Andrew Johnson’s attempt at reconstruction also put him on the defensive with Congress creating the most serious crisis in the history of relations between the executive and legislative branches of the federal government. During the war Johnson endorsed Lincoln’s emancipation policy and carried it into effect. He viewed it primarily as a means of destroying the power of the planter class rather than as recognition of black humanity (Divine Breen, Fredrickson Williams, 1987). Johnson’s presidency was a huge surprise and really wasn’t suppose to happen considering that he was a southern Democrat and a fervent white supremacist. But the root of the problem was that he disagreed with the majority of Congress on what Reconstruction was supposed to accomplish. A believer of the Democratic states’ rights he wanted to restore the prewar feral system as quickly as possible, with the only changes being that states would no longer have the right to legalize slavery or to secede. Many Republican’s believed that if the old southern ruling class were to gain power they would devise a plan to subjugate blacks. Emancipation had removed the three-fifths clause of the constitution that counted slaves as only three-fifth of a person now they were to be counted in determining representation. Congress favored a Reconstruction policy that would give the federal government authority to limit the role of ex-confederates and provide protection for black citizenship (Fitzgerald, 1989, p. 48). The disagreement between the President and Congress became irreconcilable in early 1866 when Johnson vetoed two bills that had passed with overwhelming Republican support (Fitzgerald, 1989, 81). The first was to extend the life of the Freedmen’s Bureau and the second was a civil rights bill meant to nullify the black codes and guarantee to the freedmen full and equal benefit of all laws and security of self and property as the white had. Johnson was successful at blocking the Freedmen’s bureau bill but later a modified version did pass. The Civil Rights Act won the two-thirds majority needed to override the president’s veto. The main fact was that recovery would not happen or even begin until a new labor system replaced slavery. It was widely assumed in both the North and South that southern prosperity would continue to depend on cotton and that the plantation was the most efficient way for producing the crop. But rebuilding the plantation economy was hindered by lack of capital, the belief of southern whites that blacks would work only if forced, and by the freedmen’s resistance to labor conditions that were still basically slavery (Divine, Breen, Fitzgerald Williams, 1987). Blacks wanted to be small independent farmers rather than plantation laborers and they believed that the federal government would help them to attain their dreams. General Sherman, who had huge numbers of black fugitives follow his army on a famous march, issued an order in 1865 that set aside the islands and coastal areas of Georgia and South Carolina for only black occupancy on forty acre plots. The Freedmen’s Bureau was given control of hundreds of thousands of acres of abandoned or confiscated land and authorized to make forty acre grants to black settlers for a three year period. After that they would have the option to buy at low prices. Over forty thousand black farmers worked on three hundred thousand acres of land they thought were going to be theirs (Berlin, 1976, p. 141). But the dream of forty acres and a mule the government promised was not going to happen. President Johnson pardoned the owners of most of the land assigned to the ex-slaves by Sherman and the Freedmen’s Bureau and along with the failure of congress to propose an effective program of land confiscation and redistribution the land blacks could not gain title to the land they had been working. The ex-slaves even without land and in poverty still were reluctant to settle down and commit their selves to wage labor for their former masters. They were hoping for something better and some still expecting grants of land while others were just trying to increase their bargaining power. The most common form of agricultural employment in 1866 was contract labor. Under this system workers would commit themselves for a year in return for fixed wages that the bulk of would be paid after harvest. Many planters were inclined to make hard bargains, abuse their workers or cheat them at the end of the year. The Freedmen’s Bureau took the role of reviewing the contracts and enforcing them. Buy the bureau officials had differing notions of what it meant to protect blacks from exploitation. Some stood up strongly for the rights of the freedmen; others served as allies of the planters, rounding up available workers, coercing them to sign contracts for low wages, and keeping them in line (Fitzgerald, 1989, p. 138). After 1867 the bureau’s influence was fading and a new arrangement come from direct negotiations between planters and freedmen. Unhappy with gang labor and constant white supervision, blacks demanded sharecropper’s status. This meant that they wanted the right to work a small piece of land independently in return for a fixed share of the crop produced on it and that was usually half. With the shortage of labor this gave the freedmen enough leverage to force this arrangement on those planters who were unwilling. But many landowners found it to their advantage because it did not require much capital and forced the tenants to share the risks of crop failure or a fall in cotton prices. Blacks at first viewed sharecropping as a step up from wage labor and a direction towards land ownership, but in reality it was just a new kind of slavery (Fitzgerald, 1989, p. 140). Croppers had to live on credit until their cotton was sold, and planters or merchants seized the chance to give them at high prices and huge rates of interest. Creditors were entitled to deduct what was owned to them out of the tenant’s share of the crop and this left most sharecroppers with no net profit at the end of the year, some with debt that had to be worked off the next year (Fitzgerald, 1989, p. 141). Blacks moving to cities and towns found themselves living in an increasingly segregated society. The Black Codes of 1865 attempted to require separation of the races in public places but most of the codes were set aside by federal authorities as violations of the Civil Rights Act of 1866, but that was defeated by private initiatives and community pressures. In some cities blacks successfully resisted forced separation on streetcars by appealing to the military during the brief period when it exercised authority or by organizing boycotts. But they found it almost impossible to gain admittance to most hotels, restaurants, and other privately owned establishments that catered to whites. When black supported Republican governments came to power in 1868, some of them passed civil rights acts requiring equal access to public facilities, but little efforts were made to enforce the legislation (Berlin, 1976, p. 249). Some forms of racial separation were not openly discriminatory and blacks accepted or even endorsed them. Freedmen who had belonged to white churches as slaves welcomed the chance to join all black denominations which gave freedom from white dominance and a more congenial style of worship. The first schools for ex-slaves were all black institutions established by the Freedmen’s Bureau and various northern missionary societies (Berlin, 1976, p. 285). Blacks had been denied any education at all after the war and blacks viewed separate schooling as an opportunity rather than as a form of discrimination. The Freedmen’s Bureau was a government agency that was to give assistance and protection to the Southern ex-slave after the Civil war. It gave assistance to the relief of the needy of both white and black. Its main job was to improve labor relations, administering justice and developing a black educational system. The Bureau influence though suffered in the North and was mortally damaged in the South by corruption, especially those that were connected with promising Republican control of the black vote. These excesses strengthened resistance to black suffrage and encouraged secret organizations like the Ku Klux Klan (Sehat, 2007). The bureau was established under the War Department and was suppose to exist for one year after the war. It was strengthened and its life extended in 1866 when Johnson attempted to veto. Its Director was a Christian general by the name of Oliver O. Howard and functioned through ten districts. Each had an assistant commissioner with the power to control all individuals that were refugees and freedmen. The Freedmen’s Bureau became the strongest single instrument of Reconstruction. Even though it was ended in 1869 its educational activities were extended to 1872 and its soldiers’ bounty payments till 1872 and had an expenditure of about $20,000,000 (Divine Breen Fredrickson Williams, 1987). Reconstruction failed because it was inadequately motivated, conceived and enforced. But the causes of this failure remain in shadow. Some explain it in terms of an underlying racism that prevented white Republicans from identifying fully with the cause of the black equality. Others use the clash between the class interests of those in charge of implementing and managing Reconstruction and the poor people of the South who were supposed to benefit. But the basic issue raised by Reconstruction was how to achieve racial equality in America and that was not resolved during that era and is still in conflict even today. Reference: Berlin, I. (1976). Slaves without masters. New York: Vintage Books Divine, R. A. , Breen, T. H. , Fredrickson, G. M. and Williams, R. H. (1987). America past and present, 2nd. Ed. Illinois: Scott , Foresman and Company. Fitzgerald, M. W. (1989). The union league movement in the deep south. Baton Rouge: Louisiana State University Press. Gibson, G. J. (1957). Lincoln’s League: The league movement during the Civil War. Ph. D. dissertation, University of Illinois. Sehat, D. ( 2007, May). The civilizing mission of Booker T. Washington. Journal of Southern History, 73(2), 323-362.

Addie Accident An Analysis

Addie Accident An Analysis Abstract Disability, moralization, mental satisfaction and self-assurance are the most important aspects in the novel Addie Accident. The focus of the current study is to understand the link of prejudices and ethics with this novel. The backbone of this study is the secondary data comprised of comprehensive literature review. One hypothesis is developed to check the connection of biases and moral values with Addie Accident. This hypothesis shows that mental disability and self-confidence have significant relationship with Addie Accident. This hypothesis is developed from literature review and we have also proved it with the help of critical study. Results conclude that Addie Accident is based on moralization as its end is justified in the sense that it elevates the social status of mentally sick people. Introduction Our everyday actions and interactions can influence people in many ways especially to those people who need our attention and support to survive in society and to live happily. The position of immobilized people in a society is not as standardized as the status of other people is because they are considered inferior to other folks who are normal and mental sickness is one of the agonizing human states. In this way, there is a desperate need to assemble certainty and quality in these people on every ground. The primary center of my exploration is to give consideration with respect to those rationally debilitated individuals who are overlooked from society. As, these people have their own specific rights and wishes however when they are disposed of from society, they get to be irregular and act in an uncalled for way. Such people cant defy the unforgiving circumstances of life as they are nonappearance of fortitude and quality. While discussing this issue, I have picked up a novel Addie Accident by Shirley Corlett which is by one means or another reveals profound quality in the public eye towards those individuals who by the stroke of fortunes dependably get snared in their own particular activities and exercises and after that are being censured by the others. But we cannot deny this fact that there are always two sides of picture. So here in this novel, there is only one character and that is Hubert who helps Addie. In addition, Addie Accident is an interesting novel flooded with fiascos and enterprises. Notwithstanding how hard Addie tries, mishaps simply appear to appear to her. However, in this novel profound quality offers us in light of the fact that at last, Addie assembles her certainty through one of her companions Hubert-the hapless who is likewise similar to her. He is conceived unfortunate as his name demonstrates this. He helps Addie in recapturing her certainty and quality. We can likewise say that both are conceived unfortunate as Addies dad says Our little Addie was conceived under an evil wind (12). However both Addie and Hubert turn into the cure of each other in the essential circumstance of their lives. In this way Hubert shows the factual side of the novel. So, in this paper I would like to explore how the characters except Hubert show their prejudices towards Addie in the novel? What is the role of ethics in Addie Accident? How Addie becomes an escapist in the novel? How does Hubert help Addie to get rid of her schizophrenia? Therefore, the basic theory which supports my contention is of The role of positive emotions in positive psychology by Barbara L. Fredrickson. The theory and findings acclaim that the ability to experience positive feelings may be a fundamental human quality principle to the study of human prospering. Understanding the psychology behind others exercises is a critical step with the objective that debilitated people can be propelled to encounter their lives as they wish to live. In this way, we ought to help these incapacitated individuals in developing such qualities as self-assurance, force, quality and resolution and so forth in them which may empower them to interface with alternate people and they may work and show their capability openly in the group with no trepidation of feeling of inadequacy. Literature Review The novel Addie Accident is based on ethical values and biases. The main protagonist of the novel Addie is unlucky, who is not crippled in physical sense but mentally. Things always go wrong when she intends to do anything. This leads to a serious gap in her personality and it is the main reason of her schizophrenia while such person cannot face the bitter realities of life and then he becomes unable to cope with society. People do not behave such persons in a way they should be rather they tease them and as a result, handicapped people find some other ways to pacify themselves just as Addies imaginary friends. Then a boy comes whose name is Hubert, helps her to get out of this situation and her misery. She is not physically disabled rather mentally unfit and she is born ill-fated while this is also the main tragic flaw in her personality. In the end of the novel, she builds her confidence through the help of Hubert and as a result, she becomes able to see the world with a new glance and a new perspective. In this way, ethics have been shown in this novel because the ending of Addie Accident is justified as there is an element of moralization and confidence. Behaviors towards incapacity must be known as the consequence of scientists working inside a structure that has officially made true blue the relationship between an analyst on handicap and crippled individuals. Thus, we should help these handicapped people to create such qualities as self-confidence, power, strength and will power etc. in them which may enable them to interact with the other folks and they may work and function freely in the community without any fear of inferiority complex. As, Bentham says, Everybody realizes that joy is a high esteem in present day society. Not just do individuals go for bliss in their own particular life, yet there is additionally bolster for we ought to administer to the joy of other individuals who are candidly and physically feeble in some way or another and that administrations ought to go for making more prominent joy for a more noteworthy number of subjects (Bentham 1789). McDowell and Newell (1987: 204) portray life-fulfillment as a Personal assessment of ones condition compared to an external reference standard or to ones aspirations. Moreover, Shin and Johnson (1978: 478) characterize life-fulfillment as a global assessment of a persons quality of life according to his chosen criteria. Fordyce (227) says Happiness is a particular emotion. It is an overall evaluation made by the individual in accounting all his pleasant and unpleasant experiences in the recent past. Chekolas (202) defines happiness as realization of a life-plan and the absence of seriously felt dissatisfaction and an attitude of being displeased with or disliking ones life. Similarly Sumner (145-146) states being happy as having a certain kind of positive attitude toward your life, which in the fullest form has both a cognitive and an affective component. The cognitive aspect of happiness consists in a positive evaluation of your life, a judgment that at least on balance; it measures up favorably against your standard or expectationsThe affective side of happiness consists in what we commonly call a sense of well-being, finding your life enriching or rewarding or feeling satisfied or fulfilled by it. (67) So Addie wants to live happily but she is disabled mentally and in this way she has no right in a society because crippled people are the lowest folks among any society. Nobody behaves to them in a proper way rather normal ones tease them and realize handicapped people that they are not fit for society. Being a mentally crippled girl, she should have her own rights and values which may help her to cope with society. Similarly, mentally sick people like Addie need special care and attention. Every member of society should pay heed to such abnormal persons. They should not have been victimized of frustration, annoyance, depression and above all inferiority complex. People with scholarly inabilities, then again, are frequently judged to have the sort of mental deformity that alleviates their risk. Shoemaker (2009) recommends, Individuals with mild intellectual disabilities are eligible for accountability primarily just by those with whom they already find themselves emotionally engaged, such as family, friends and caregivers. The reason for this, he argues, is that their developmental capacities have been limited to the stage of concrete operations. (455) In this manner, they cant acknowledge theoretical standards about common acknowledgment and responsibility among kindred individuals from the ethical group. Shoemaker subsequently says: Due to their cognitive capacities, persons with mild intellectual disabilities are able to appreciate only the concrete appeals from those they care about while often being unable to respond emotionally and morally in a proper way to the appeals of strangers. This notion could well be applied to most people because it appears to be a part of human condition that we tend to favor morally beings emotionally close to us (161). A journal Impaired individuals encounters of against social conduct and badgering in social lodging: a basic survey informs: A number of studies have looked at levels of harassment and victimization amongst disabled people. It is not always possible from the studies to be precise about the behavior which is involved as a number of terms are used: harassment, victimization, bullying. Nonetheless a consistent picture emerges from them all of very high rates of susceptibility to behaviour which falls within the definition of anti ­social social behaviour, and which is often targeted at people because of their impairment(07). Wood and Edward say Studies found extremely high levels of harassment and victimization for this group ranging between 47% and 60% of respondents having been a victim of some form of harassment.(205). Thurgood and Hames (1999) shown that16% had been hit by neighbours. (23). In the 2004 DRC(Disability Rights Commission) study over the scope of impedances, 73% of respondents reported having been verbally assaulted and 35% physically assaulted. Predominance was most elevated however amongst those with emotional well-being conditions. In the GLA study half had endured mishandle or tormenting. Kelly and Mckenna reveal Given the higher rates of disability amongst tenants of social landlords, and the indications in the research reported here, there is a need for a more comprehensive assessment of how social landlords respond to and encourage confidence in victims of anti ­social behaviour who are disabled.(74) Harassment is regularly depicted as a customized type of anti ­social conduct, i.e. it is coordinated at the specific casualty. This may happen on account of a particular normal for the casualty, for example, race or sexuality or, handicap. Glason says Disabled people are more likely to become harassed for simply standing out more, with people with the most visible impairments tending to be at even greater risk. Irresponsible media portrayals of disabled people have been roundly condemned in some quarters for exacerbating the problem. (19) As, DRC has presented a report which claims: It would appear that many disabled people have little confidence in the current options available to them for confronting and resolving harassment. Fear often makes them reluctant to report harassment. Disabled people lacked confidence in agencies such as the police or social housing providers to resolve problems relating to harassment or victimization. (DRC/ Capability Scotland, 2004). Finkelstein says it is society which handicaps debilitated individuals by not giving satisfactory offices to their complete coordination (32). He proceeds to propose a reversal of the wording used by Harris I recommend changing the meaning of the words impairment and handicap around. Along these lines a man is debilitated when he is socially kept from full investment by the way society is masterminded (19). Another debilitated essayist has recommended the definition ought not to be based upon insufficiency but rather just on the level of belittling or separation they encounter on the premise of their physical condition (17). While clearly such a contemplated a considerable measure of discourse and common contention, reality remains that any try at course of action must make note of the points of view of the crippled themselves. In actuality the inaugural meeting of the Disabled Peoples International, addressing more than fifty nations, starting late rejected the International Classif ication of Impairment, ineptitudes and Handicap proposed by the World Health Organization (1980). Thats why crippled people have to face many problems because they are considered less than normal human beings. As a result they become the victim of inferiority complex, depression, anger and frustration. But in spite of all this, disabled folks should be given their proper rights and values. They should not be underestimated by teasing about their physical or mental condition or weaknesses rather every person of society ought to encourage and help them. They must be given special attention so that they may not consider themselves low. The distinction is that some individuals with incapacities require this bolster all the more seriously, in more aspects of their life and for more periods. Research methodology The purpose of this study is to find out predispositions and moralization in the novel and their relationship with Addie. To achieve the research purpose, secondary sources have been used to collect the data. Secondly, we have reviewed related theory to explain that the novel Addie Accident has both the elements of prejudices and morality in this sense that Addie, central character of the novel is suffering from schizophrenia. She is a victim of bullies because everything becomes topsy-turvy when she wants to do something. But in the end, in spite of all this, she builds her confidence with the help of her friend Hubert who helps her to get rid of being accident prone. Then she becomes able to see everything according to her own viewpoint. Theory of the role of positive emotions in positive psychology by a psychologist Dr. Barbara L. Fredrickson supports this study. This theory expresses that specific discrete constructive feelings-including bliss, interest, contentment, pride, and l ove-despite the fact that phenomenological particular, all share the capacity to expand individuals flashing thought-activity collections and assemble their persisting individual assets, extending from physical and scholarly assets to social and psychological assets. We have chosen qualitative research method as it is concerned with the explanation of social phenomena, the world in which we live, its social aspects and why things are in the way they are. Secondary data comprised of published research, internet material and academic research has been used. Critical study In the book Addie Accident, a girl named Addie is mentally sick because no matter how hard Addie tries, mishaps just seem to happen to her. She is Bullied at school when one of the boys says, you clumsy dumbo! (09). When she receives such remarks, tears of anger burn in her heart and she begins to hate those big bullies. Later on she gets entangled her head between the railings of her school and then injures. Upon this, instead of helping her to get out of her head between the railings, her teacher Miss Forrest arrives and says, Common sense flies out the window when one is dealing with Addie Harris. She has to be the most accident-prone child Ive ever known. (11) after this when her dad comes back to his house, his face wears a look of apprehension and resignation. After a while, he says, the jinx has hit again. Our little Addie was born under an ill wind. (12) Her mother always encourages her with this notion that one day Addie will get rid of all these things and she does not scold her. She hugs Addie and says, Dont look so glum, love. Its not the end of the world. Why dont you write me a story? I love your stories. Theyre so imaginative. (12) Anyone thinks that she does things on purpose. She gets the blame for everything and it is not fair. Addies sister, Candice also hates her because she always creates chaos which is not her fault but due to her mental disability. It is said about her sister, everything embarrassed Candice, especially anything her younger sister did. (13) Candice and including everyone becomes to hate her, she scares people and kids steer clear, either of their own accord or because their parents order them to. Candice says to Addie, youre a magnet for accidents (17). Addie has her own special friends that no one else knows about. Friends she can pluck out of her head. Friends who love to play with her. Using her imagination is the only other thing apart from walking on her hands that Addie is good at. It is a place where shadows fall where they shouldnt where ripples move leaves when there is no breeze and where whisper fills empty spaces. It is the door to imagination land, where her imaginary friends live. As Shirley says in the book, This was her place! This was where imagination land existed. There were no adults, no teachers, no teasing kids or bullies like Georgina and Leah to pick on her. This was her very own world, complete with her very own sovereign. Enchantress Chu. (21) Addies friends are always keen to follow her in the adventurous schemes she makes. They never betray, never blame, never laugh, scoff or scold. And most special of all is that imagination land is a place where accidents are unheard of. Her imagination land makes her feel scummy. Her Miss Forrest says to her, There were two sides to a brain. There was the logical side and the dream side. You used the logical side for normal everyday use, but when you wrote stories you swapped over to the dream side because thats where your imagination lived. Addie used the dream side of her brain lots more than she used the logical side (23). Addies imagination is the source for producing ideas. No ideas and then there will be no imaginary friends. And without them, life is super lonely. But what she actually needs is a friend like herself, an accident-prone friend. One who will sympathize her and that sort of friend who will never desert her. Although it is much harder to imagine someone like herself. Then one day she encounters such friend in real life whose name is Hubert the hapless. Addie asks him, Whats hapless mean? And he says: Means unfortunate. Everything I touch turns bad. Im hopeless at everything. Everyones scared of me. Everyone hates me. Im forever in trouble. Always in the wrong place at the wrong time. (41) It is as he has described her but Addie does not believe this and questions Hubert whether he is really exist or he is mere her imagination. Upon this, Hubert says, Im Hubert the hapless. Your soul mate and Im like you. (41) Then both Addie and Hubert become friends. He informs her that soon they will get rid of their ill-luck by doing special kind of charms and Hubert says, We work together at curing ourselves. (50) In this way both prove therapeutic partners for each other. Hubert helps Addie in building her confidence so that she may live her life as she expected to live. Then Addie says to Hubert when they both finish their charm, I finally did something right. Everyone says Im brave (212). And then Hubert states, Things are different now. Ià ¢Ã¢â€š ¬Ã‚ ¦that is weà ¢Ã¢â€š ¬Ã‚ ¦can make decisions for ourselves. We dont need to blame everyone else for the trouble we get into. Weve learned to be responsible for our own actions. (213) later on both talk each other for a while and then Hubert begins to leave by saying, Now I can live in your imagination land forever (226). And then he disappears. As a result of all this, Addie gains her self-confidence and becomes a confident girl. And now her psychic disorder has been cured. Conclusion The nitty and gritty of the whole discussion is that society can and ought to do all conceivable to take out building hindrances in the method for handicapped individuals. There is a great deal that should be possible to change this, including better instruction; guaranteeing there are more open doors for impaired individuals and individuals why should handicapped have constructive connections; and empowering more constructive depictions of inability and incapacitated individuals in the media. End of provocation of incapacitated individuals is additionally a fundamental stride that is identified with their handicap. Old generalizations and mistaken assumptions of handicap should be supplanted by new social developments. Everybody must advance inspirational states of mind towards debilitated individuals. As this research paper has shown, most of the issues connected with mental inabilities are socially built and in that capacity are the honest to goodness topic of this order. The certainty remains that the personal satisfaction experienced by the larger part of impeded individuals in current society is impressively lower than that delighted in by their capable counterparts. Along these lines, expanding individual contact with individuals with handicaps by supporting them to get to instruction, livelihood and social exercises on an equivalent balance with other people may end up being the most critical and evenhanded of intercessions. This will be done through inspecting instruction and vocation strategies and handling the obstructions that counteract individuals with incapacities getting to fitting training and job opportunities and taking part in social life.

Indian Railways Financial Capacity Enhancement

Indian Railways Financial Capacity Enhancement Physical and financial capacity enhancement/capacity building of Indian railways over years To analyze how the physical capacity of Indian railways has enhanced over years. To examine financial capacity enhancement of Indian railways over years In our research we have considered two types of Capacity enhancements one is physical capacity and another one is financial capacity. Capacity enhancement has been defined in multiple ways; its ultimate purpose is to leave behind better skilled and oriented individuals, more responsive and effective institutions, and a better policy environment for pursuing development goals. Capacity enhancement at the institutional or policy level has three main ingredients The country’s resources and capabilities An enabling institutional environment Motivations and incentives/pressures that promote and help to sustain behavioral change Capacity utilization: Capacity utilization is a concept in economics and managerial accounting which refers to the extent to which an enterprise or a nation actually uses its installed productive capacity. Thus, it refers to the relationship between actual output that is produced with the installed equipment and the potential output which could be produced with it, if capacity was fully used. If market demand grows, capacity utilization will rise. If demand weakens, capacity utilization will slacken. Economists and bankers often watch capacity utilization indicators for signs of inflation pressures. The capacity utilization rate is also an indicator of how efficiently thefactors of productionare being used. Economic efficiency: In economics, the term economic efficiency refers to the use of resources so as to maximize the production of goods and services. An economic system is said to be more efficient than another (in relative terms) if it can provide more goods and services for society without using more resources. In absolute terms, a situation can be called economically efficient if: No one can be made better off without making someone else worse off (commonly referred to asPareto efficiency). No additional output can be obtained without increasing the amount of inputs. Production proceeds at the lowest possible per-unit cost. Technical efficiency: Technical efficiency means that natural resources are transformed into goods and services without waste, Situation where it is impossible for a firm to produce, with the given know how, (1) a larger output from the same inputs or (2) the same output with less of one or more inputs without increasing the amount of other input. Technical efficiency is the effectiveness with which a given set of inputs is used to produce an output. A firm is said to be technically efficient if a firm is producing the maximum output from the minimum quantity of inputs, such as labor, capital and technology. Productivity: Productivity is a measure of the efficiency ofproduction. Productivity is a ratio of production output to what is required to produce it (inputs). The measure of productivity is defined as a total output per one unit of a total input. Physical capacity Railway stations Employees Route length Locomotives Total investment Capital at charge Passenger service vehicles Volume of traffic Other coaching vehicles Wagons (To calculate efficiency and productivity we must apply models and tests. Dan bogart and lathika have used cobb douglas production function to calculate efficiency in the operations. Alivelu used a model to calculate productivity. DEA may be used) Locomotives, coaches, wagons and other type of railway vehicles are together called as rolling stock, rolling stock originally referred to the vehicles that move on a railway, it usually includes both powered and unpowered vehicles (Wikipedia). In In some countries the term is usually use to refer only to unpowered vehicles, specifically excluding locomotives which may be referred to as running stock, traction or motive power. In India all the railway vehicles are called as rolling stock. In simple language locomotive is also called as engine, it is a rail transport vehicle that provides the motive power for a train. The word locomotive originates from the Latin word loco which means from a place and motivus which means causing motion. A locomotive has no payload capacity of its own and its sole purpose is to move the train along the tracks. A wagon is a large container on wheels which is pulled by a train. Goods wagons or freight wagons are unpowered railway vehicles that are used for the transportation of cargo. OTIF definition: a railway vehicle not provided with a means of traction, which is intended to carry goods. A passenger car is also known as bogie in India. It is a piece of railway rolling ,stock that is designed to carry passengers. The term passenger car is also associated with a sleeping car, baggage, dining, railway post office and prisoner transport cars. EMU DMU DHMU (EMU) A set of electrically powered self-propelling passenger rail vehicles able to operate in multiple with other such sets (DMU) A set of diesel-powered self-propelling passenger rail vehicles able to operate in multiple with other such sets. Such units, especially those consisting of a single vehicle, are sometimes termed railcars . A  diesel multiple unit  or  DMU  is a multiple-unit train powered by on-board diesel engines. A DMU requires no separate locomotive, as the engines are incorporated into one or more of the carriages. They may also be referred to as a railcar or railmotor, depending on country. Diesel-powered units may be further classified by their transmission type: diesel-electric (DEMU), diesel-mechanical (DMMU) or diesel-hydraulic (DHMU). Diesel-mechanical In a diesel-mechanical multiple unit (DMMU) the rotating energy of the engine is transmitted via a gearbox and driveshaft directly to the wheels of the train, like a car. The transmissions can be shifted manually by the driver, as in the great majority of first-generation British Rail DMUs, but in most applications gears are changed automatically. Diesel-hydraulic In a diesel-hydraulic multiple unit, a hydraulic torque converter, a type of fluid coupling, acts as the transmission medium for the motive power of the diesel engine to turn the wheels. Some units feature a hybrid mix of hydraulic and mechanical transmissions, usually reverting to the latter at higher operating speeds as this decreases engine RPM and noise. Diesel-electric In a diesel-electric multiple unit (DEMU) a diesel engine drives an electrical generator or an alternator which produces electrical energy. The generated current is then fed to electric traction motors on the wheels or bogies in the same way as a conventional diesel electric locomotive. [1] In modern DEMUs, such as the Bombardier Voyager family, each car is entirely self-contained and has its own engine, generator and electric motors. [1] In older designs, such as the British Rail Class 207, some cars within the consist may be entirely unpowered or only feature electric motors, obtaining electrical current from other cars in the consist which have a generator and engine. Year No. of railway stations Employees (in thousands) Route length (in kilometers) Total investment (in crore) Capital at charge 1980-81 7035 1572 61240 7448.4 6096.3 1981-82 7072 1575 61230 8164.3 6698.1 1982-83 7068 1584 61385 8882.2 7251.1 1983-84 7065 1592 61460 9401.4 7567.8 1984-85 7093 1603 61850 10377.3 8285.6 1985-86 7092 1613 61836 11492.0 9078.1 1986-87 7105 1611 61813 13306.9 10373.1 1987-88 7084 1618 61976 15177.6 11622.2 1988-89 7083 1626 61985 17239.4 12987.5 1989-90 7076 1647 62211 19730.6 14629.5 1990-91 7100 1652 62367 22200.5 16125.8 1991-92 7116 1654 65458 24808.4 17712.5 1992-93 7043 1646 62486 28524.3 20123.2 1993-94 7050 1625 62462 32212.0 22620.6 1994-95 7056 1602 62660 35618.2 24924.8 1995-96 7068 1587 62915 39816.0 27712.89 1996-97 6984 1584 62725 44627.3 30911.77 1997-98 6929 1579 62495 49057.8 33846.33 1998-99 6896 1578 62809 53657.6 36829.34 1999-00 6867 1577 62759 58353.4 39772.06 2000-01 6843 1545 63028 63341.01 43051.88 2001-02 6856 1511 63140 70117.47 47147.35 2002-03 6906 1472 63122 77915.78 51099.09 2003-04 7031 1442 63221 87474.50 56061.79 2004-05 7133 1424 63465 98490.02 59346.93 2005-06 6974 1412 63332 112180.41 66878.37 2006-07 6909 1398 63327 130168.71 76030.69 2007-08 7025 1394 63273 151434.35 88521.14 2008-09 7030 1386 64015 176726.41 104301.25 2009-10 7083 1362 63974 203315.37 123000.69 2010-11 7133 1328 64460 231615.25 143220.57 2011-12 7146 1306 64600 257958.35 161447.97 2012-13 2013-14 Source: statistical summary- Indian railways Year Passenger carriage EMU DMU DHMU Other coaching vehicles (in units) Wagons (in units) Locomotives(in units) steam diesel electric 1980-81 27410 2625 8230 400946 7469 2403 1036 1981-82 27192 2658 8058 392062 7245 2520 1104 1982-83 26894 2765 7840 383431 6292 2638 1157 1983-84 27311 2837 7751 374757 6217 2800 1194 1984-85 27793 2957 7789 365392 5870 2905 1252 1985-86 27735 2965 7543 359617 5571 3046 1302 1986-87 27629 2988 7336 354041 4950 3182 1366 1987-88 27466 2977 7274 346844 4427 3298 1433 1988-89 27715 3052 7077 345821 3826 3454 1533 1989-90 27969 3100 6861 349661 3336 3610 1644 1990-91 28677 3142 6668 346102 2915 3759 1743 1991-92 29469 3366 6491 346394 2492 3905 1871 1992-93 30298 3444 6158 337562 1725 4069 2012 1993-94 30537 3537 5955 312405 911 4192 2117 1994-95 30036 3618 5536 291360 358 4259 2302 1995-96 29472 3691 5694 280791 209 4313 2387 1996-97 29978 3846 5460 272144 85 4363 2527 1997-98 30739 3971 5432 263981 64 4496 2646 1998-99 31554 4076 5338 252944 58 4586 2785 1999-00 32208 4266 4891 234397 56 4651 2810 2000-01 33236 4668 4731 222193 54 4702 2810 2001-02 34338 4876 4827 216717 53 4815 2871 2002-03 34871 4957 4904 214760 52 4699 2930 2003-04 35654 5278 5519 227752 45 4769 3004 2004-05 37087 5388 5600 222409 44 4807 3065 2005-06 38156 5894 5612 207983 44 4793 3188 2006-07 38855 6454 5905 207723 43 4816 3294 2007-08 40696 6641 6180 204034 44 4843 3443 2008-09 42079 6984 5985 212835 43 4963 3586 2009-10 43526 7487 6477 220549 42 5022 3825 2010-11 45048 8053 6500 229997 43 5137 4033 2011-12 46688 8617 6560 239321 43 5197 4309 2012-13 Source: statistical summary- Indian railways Capacity enhancement in Passenger service Year No. of passenger origination( in million) Passenger kms (in million) Passenger earning (in crore) 1980-81 3613 208558 827.5 1981-82 3704 220787 988.6 1982-83 3655 226930 1161.6 1983-84 3325 222935 1351.9 1984-85 3333 226582 1456.8 1985-86 3433 240614 1719.4 1986-87 3594 256535 1939.7 1987-88 3792 269389 2058.1 1988-89 3500 263731 2453.4 1989-90 3653 280848 2666.4* 1990-91 3858 295644 3144.7* 1991-92 4049 314564 3681.6 1992-93 3749 300103 4311.2 1993-94 3708 296245 4891.2 1994-95 3915 319365 5458.8 1995-96 4018 341999 6113.0 1996-97 4153 357013 6616.1 1997-98 4348 379897 7554.0 1998-99 4411 403884 8526.7 1999-00 4585 430666 9555.6 2000-01 4833 457022 10483.2 2001-02 5093 490912 11162.2 2002-03 4971 515044 12540.8 2003-04 5112 541208 13259.8 2004-05 5378 575702 14072.52 2005-06 5725 615614 15080.77 2006-07 6219 694764 17176.01 2007-08 6524 769764 19783.25 2008-09 6920 838032 21866.48 2009-10 7246 903465 23414.44 2010-11 7651 978508 25705.64 2011-12 8224 1046522 28246.43 2012-13 Source: statistical summary- Indian railways Capacity enhancement in freight service Years Total traffic Tonnes originating (in millions) Total traffic net tonne kms (in millions) Earnings from freight carried 1980-81 220.0 158474 1550.9 1981-82 245.8 174202 2250.3 1982-83 256.0 177767 2865.9 1983-84 258.0 178446 3234.3 1984-85 264.8