Online Blood Banking (Srs)

SRS FORMAT Index & Tables 1. Introduction Purpose of the Project: Online Blood Bank is aims serving for human welfare. We have all the information, you will ever need. Many people are here for you, to help you, willing to donate blood for you anytime. We have done all the job, rest is yours. search the blood group you need. You can help us by registering on Online Blood Bank if you are willing to donate your blood when needed. As a proud member of OnlineBloodBank and a responsible human being, you can help someone in need. So donate blood in online. Scope of the project: Online Blood Bank is aims serving for human welfare.We have all the information, you will ever need. Many people are here for you, to help you, willing to donate blood for you anytime. We have done all the job, rest is yours. search the blood group you need. You can help us by registering on Online Blood Bank if you are willing to donate your blood when needed. As a proud member of OnlineBloodBank and a responsible h uman being, you can help someone in need. So donate blood in online. Modules: 1. Admin 2. Donar 1. Admin: This module focuses on the both donars & acceptors. Each member in a donar & acceptor is given a user id and password, which identifies him uniquely.The member is given a login form. he enters the login details user id and password. .. The options given to †¢ Change Password †¢ Maintain donar details †¢ Maintain referral once †¢ Update donar details †¢ View Experiances †¢ Logout Whenever a user wants to change his / her password he can select the change password option. The system displays the form, which asks him for his old password and new password. The system then compares the old password with the existing password in the database and if they match then the password is set to the new password in the database.The id for retrieving the details from the database is brought through the session, which is maintained using cookies in the form. This re moves the burden on user in typing user id again and also maintains security by not allowing one user to change password of other accidentally. 2. Donar: Each member in a Donar is given a user id and password, which identifies him uniquely. The member is given a login form. he enters the login details user id and password. .. The options given to a each member in a staff are †¢ Change password †¢ Find a Blood group. †¢ Why donate blood †¢ Who needs blood †¢ Find A Donar. †¢ Refer A Friend. †¢ LogoutWhenever a user wants to change his / her password he can select the change password option. The system displays the form, which asks him for his old password and new password. The system then compares the old password with the existing password in the database and if they match then the password is set to the new password in the database. The employee id for retrieving the details from the database is brought through the session, which is maintained usi ng cookies in the form. This removes the burden on user in typing user id again and also maintains security by not allowing one user to change password of other accidentally.At the end the user is able to log out from the system using the logout option. References: 1. â€Å"Windows Programming Using MFC† – Jeff Prosice 2. â€Å"MFC Internals† – Geroge Shepherd 3. â€Å"Programming in Microsoft VC++† – Kruglinnki. 4. â€Å"Software Engineering Concepts† – Pressman 5. â€Å"Object Oriented Analysis and Design† – Rambaugh Technologies: you can use the . NET Framework to develop the following types of applications and services: †¢ Console applications. †¢ Scripted or hosted applications. †¢ Windows GUI applications (Windows Forms). †¢ ASP. NET applications. †¢ XML Web services. †¢ Windows services. 2. Overall Description: Sotware Interface:OPERATING PLATFORM : WINDOWS 2000/NT/XP RDBMS: SQ LSERVER 2000 SOFTWARE : VS. NET 2008 FRONT END TOOL : ASP. NET Hardware Interface: RAM :128MB HARD DISK :MINIMUM 20 GB 1. Data Flow Diagrams: Data flows are data structures in motion, while data stores are data structures. Data flows are paths or ‘pipe lines’, along which data structures travel, where as the data stores are place where data structures are kept until needed. Data flows are data structures in motion, while data stores are data structures at rest. Hence it is possible that the data flow and the data store would be made up of the same data structure.The following are some DFD symbols used in the project External entities DATAFLOWS FIRST LEVEL DTAFLOW DIAGRAM donar Information Employee Status DFD For Admin DFD For User Account 2. Unified Modeling Language Diagrams (UML): †¢ The unified modeling language allows the software engineer to express an analysis model using the modeling notation that is governed by a set of syntactic semantic and pragmatic rule s. †¢ A UML system is represented using five different views that describe the system from distinctly different perspective. Each view is defined by a set of diagram, which is as follows. User Model View i.This view represents the system from the users perspective. ii. The analysis representation describes a usage scenario from the end-users perspective. Structural model view (In this model the data and functionality are arrived from inside the system. (This model view models the static structures. Behavioral Model View (It represents the dynamic of behavioral as parts of the system, depicting the interactions of collection between various structural elements described in the user model and structural model view. Implementation Model View ? In this the structural and behavioral as parts of the system are represented as they are to be built.Environmental Model View In this the structural and behavioral aspects of the environment in which the system is to be implemented are repre sented. UML is specifically constructed through two different domains they are ? UML Analysis modeling, which focuses on the user model and structural model views of the system? ? UML design modeling, which focuses on the behavioral modeling, implementation modeling and environmental model vie Use-Case Model Survey: 1) Use Case Diagrams Admin: The Administrator is the user of the system. He is the responsible person to require the new Donars and status, Matins the Add new Tasks Details.Donar: This module focuses on the basic Donar. Each Donar is given a user id and password, which identifies him uniquely. The Donar is given a login form where in he enters the login details user id and password. As he is a registered into the system shows his form with his/her select options 1) Sequence Diagrams Administrator Login Sequence 2) Sequence Diagrams Employee Login Sequence . ELABORATION PHASE [pic] Flow chart: 3. ENTITY-RELATIONSHIP Diagrams E-R (Entity-Relationship) Diagram is used to re presents the relationship between entities in the table. The symbols used in E-R diagrams are: SYMBOL PURPOSERepresents Entity sets. Represent attributes. Represent Relationship Sets. Line represents flow Structured analysis is a set of tools and techniques that the analyst. To develop a new kind of a system: The traditional approach focuses on the cost benefit and feasibility analysis, Project management, and hardware and software selection an personal considerations. Admin Donar: 11. CONCLUSION This project has helped us in implementing the Visual C++ using AppWizard and MFC. We automated the work of allocating shifts to the Employee according to their Designation and Gender . All Tasks are done by different Groups.Each group formed as same department Employees or different department Employees. Generation of shifts allocation for Employee helped us in learning Object oriented features and implementing them in MFC. We came to know about the scheduling the tasks updating by time an d have a plan of completing task with in time proper designing of Rotating the schedules. ———————– Process: A transaction of information that resides within the bounds of the system to be module. DATASTORE:A repository of data that is to be stored for use by one or more processes, may be as simple as buffer of queue or as a relational database.Donar Module Admin information Module Donar Donar New Registrations [pic] Matian Client Details donars Details Donar blood information Login Admin New Donar Registrations Donar Information Referral once Details Experiances Logout Validate Log name () Validate Password () Check for required privileges () Authenticate The id Admin Master Donar Registrations and Add New Task Details . Enter log name Login Get the Information about why donate blood Find a donar Change Password Refer a friend ( Donar Administrator login master Administrator login master Login screen Admin Master Authenticate T he id Check for required privileges ()Validate Password () Validate Log name () Enter log name Administrator login master Administrator login master Login screen Leave Applications and Information of Task and Shifts ( Admin Store re login Query Analyzer Authenticate the given parameter ( Check for any specific schedules allocated upon him Donate blood Store ery Analyzer Donar Supply the customer ID Experiances Authenticate the customer ID Store Sto Store re Query Analyzer Enter the required policy parameters Change Password Insert Admin Verify Data 3. 1 Verify Data 3. 1 Check for Donar Admin Master Admin Master Verify Data 3. 1 Admin Master Check for Schemes InsertAdmin Master Check for User Account User Master Insert Donar Verify Data 2. 1 Verify Data 2. 2 Verify Data 2. 3 Donar Master Page Check for the Donar Profile Insert Donar Master Check for the Donar Account Details Donar Registrations Who needs blood Donar information Phno Location yob BloodType Username Gender Password Ful l Name Admin Name Donar Details Donar blood details How to donate bloods Experiances details Comments donar Details Who needs blood Blood details Donate blood Phno Location yob BloodType Username Gender password Full Name Donar profile Donar Name Donar Details Experience details comments Refer a friends

Criminology and Terrorism

J. Paul BatraProfessor Barnes Research Paper Final due 4/19/10 April 1, 2010 Terrorism Introduction Terrorism is defined loosely based on the Latin word Terre, which means to frighten. To be considered an act of terrorism, which is a political crime, an act must carry with it the intent to disrupt and the change the government and should not be merely a common-law crime committed for greed or egotism. The discipline of economics has many concepts that are relevant to an understanding of terrorism — supply and demand — costs and benefits, etc. Fully-developed economic or econometric models of terrorism are quite rare, however, and often involve such things as â€Å"psychic† costs and benefits (Nyatepe-Coo 2004). More down-to-earth economic theories can be found in the literature on deterrence. Rational choice theory, in particular, has found a place in criminology, and holds that people will engage in crime after weighing the costs and benefits of their actions to arrive at a rational choice about motivation after perceiving that the chances of gain outweigh any possible punishment or loss. The second theory that can explain the motivation behind terrorism is the relative deprivation hypothesis which is the idea that as a person goes about choosing their values and interests, they compare what they have and don't have, as well as what they want or don't want, with real or imaginary others. The person then usually perceives a discrepancy between what is possible for them and what is possible for others, and reacts to it with anger or an inflamed sense of injustice. We should be advised that debates exist within criminology regarding relative deprivation and terrorism, on the one hand, with the anomie or strain tradition which finds causal influence in such objectivist factors as Gross Domestic Product, and on the other hand, with the left realist tradition which finds causal influence in subjective experiences of deprivation or discomfort Crime Characteristics of Terrorism: Terrorism is not new, and even though it has been used since the beginning of recorded history it can be relatively hard to define. Terrorism has been described variously as both a tactic and strategy; a crime and a holy duty; a justified reaction to oppression and an inexcusable abomination. Obviously, a lot depends on whose point of view is being represented. Terrorism has often been an effective tactic for the weaker side in a conflict. As an asymmetric form of conflict, it confers coercive power with many of the advantages of military force at a fraction of the cost. Due to the secretive nature and small size of terrorist organizations, they often offer opponents no clear organization to defend against or to deter. The United States Department of Defense defines terrorism as â€Å"the calculated use of unlawful violence or threat of unlawful violence to inculcate fear; intended to coerce or to intimidate governments or societies in the pursuit of goals that are generally political, religious, or ideological. † Within this definition, there are three key elements—violence, fear, and intimidation—and each element produce terror in its victims. The FBI uses this: â€Å"Terrorism is the unlawful use of force and violence against persons or property to intimidate or coerce a government, the civilian population, or any segment thereof, in furtherance of political or social objectives. † The U. S. Department of State defines â€Å"terrorism† to be â€Å"premeditated politically-motivated violence perpetrated against non-combatant targets by sub-national groups or clandestine agents, usually intended to influence an audience. (International Terrorism and Security Research). Technological terrorism is defined as actions directed against infrastructure elements critically important for national security or committed with the use of especially hazardous technologies, technical means, and materials. In considering technological terrorism scenarios, the primary impact factors of such terrorist acts initiate secondary catastrophic processes with a significantly higher (tens and hundreds of times) level of secondary impact factors that affect the targets of the ttack, their personnel, the public, and the environment. (Nikolai A. Makhutov, Vitaly P. Petrov, and Dmitry O. Reznikov, Russian Academy of Sciences Institute of Machine Sciences )Although what we don't know about the psychology of terrorism is more than what we do know, there have been several promising attempts to merge or combine psychology with sociology (and criminal justice) into what might be called terrorist profiling (Russell and Miller 1977; Bell 1982; Galvin 1983; Strentz 1988; Hudson 1999). This line of inquiry actually has a long history, and includes what rare studies exist of female terrorists. The earliest study (Russell and Miller 1977) found that the following people tend to join terrorist organizations: †¢ 22-25 years of age †¢ 80% male, with women in support roles †¢ 75-80% single †¢ 66% middle or upper class background †¢ 66% some college or graduate work †¢ 42% previous participation in working class advocacy groups †¢ 17% unemployed †¢ 18% strong religious beliefs IBLIOGRAPHY NOTE: Characteristics of Technological Terrorism Scenarios and Impact Factors* http://www. nap. edu/openbook. php? record_id=12490=53 The Economics theory of Rational Choice Theory as a theory of terrorism contends that these criminals usually come to believe their actions will be beneficial — to themselves, their community, or society — AND they must come to see that crime pays, or is at least a risk-free way to better their situatio n. Perhaps the most well-known version of this idea in criminology is routine activities theory (Cohen and Felson 1979), which postulates that three conditions must be present in order for a crime to occur: (1) suitable targets or victims who put themselves at risk; (2) the absence of capable guardians or police presence; and (3) motivated offenders or a pool of the unemployed and alienated. Other rational choice theories exist which delve further into models of decision making. In the few models of collective iolence that have found their way into criminology, the Olson hypothesis (source unknown) suggests that participants in revolutionary violence predicate their behavior on a rational cost-benefit calculus to pursue the best course of action given the social circumstances. Bibligraphy note: (THEORIES AND CAUSES OF TERRORISM) http://www. apsu. edu/oconnort/3400/3400lect02. htm) .   As far as we know, most terrorists feel that they are doing nothing wrong when they kill and injure p eople. They seem to share a feature of the psychological condition known as antisocial personality disorder or psychopathic personality disorder, which is reflected by an absence of empathy for the suffering of others. However, they do not appear unstable or mentally ill for this. A common feature is a type of thinking such as â€Å"I am good and right. You are bad and wrong. †Ã‚   It is a very polarized thinking which allows them to distance themselves from opponents and makes it easier for them to kill people. It is not the same kind of simplistic thinking one would expect from someone with low intelligence or moral development. Most terrorists are of above average intelligence and have sophisticated ethical and moral development. A closed-minded certainty is a common feature of terrorist thinking. (Merari 1990). Relative Deprivation occurs where individuals or groups subjectively perceive themselves as unfairly disadvantaged over others perceived as having similar attributes and deserving similar rewards (their reference groups). It is in contrast with absolute deprivation, where biological health is impaired or where relative levels of wealth are compared based on objective differences – although it is often confused with the latter. Subjective experiences of deprivation are essential and, indeed, relative deprivation is more likely when the differences between two groups narrows so that comparisons can be easily made than where there are caste-like differences. The discontent arising from relative deprivation has been used to explain radical politics (whether of the left or the right), messianic religions, the rise of social movements, industrial disputes and the whole plethora of crime and deviance. The usual distinction made is that religious fervour or demand for political change are a collective response to relative deprivation whereas crime is an individualistic response. But this is certainly not true of many crimes – for example, smuggling, poaching or terrorism – which have a collective nature and a communal base and does not even allow for gang delinquency which is clearly a collective response. The connection is, therefore, largely under-theorized – a reflection of the separate development of the concept within the seemingly discrete disciplines of sociology of religion, political sociology and criminology. The use of relative deprivation in criminology is often conflated with Merton's anomie theory of crime and deviance and its development by Cloward and Ohlin, and there are discernible, although largely unexplored, parallels. Anomie theory involves a disparity between culturally induced aspirations (eg success in terms of the American Dream) and the opportunities to realise them. The parallel is clear: this is a subjective process wherein discontent is transmuted into crime. Furthermore, Merton in his classic 1938 article, ‘Social Structure and Anomie', clearly understands the relative nature of discontent explicitly criticising theories which link absolute deprivation to crime by pointing to poor countries with low crime rates in contrast to the wealthy United States with a comparatively high rate. But there are clear differences, in particular Mertonian anomie involves an inability to realise culturally induced notions of success. It does not involve comparisons between groups but individuals measuring themselves against a general goal. The fact that Merton, the major theorist of reference groups, did not fuse this with his theory of anomie is, as Runciman notes, very strange but probably reflects the particular American concern with ‘winners' and ‘losers' and the individualism of that culture. The empirical implications of this difference in emphasis are, however, significant: anomie theory would naturally predict the vast majority of crime to occur at the bottom of society amongst the ‘losers' but relative deprivation theory does not necessarily have this overwhelming class focus. For discontent can be felt anywhere in the class structure where people perceive their rewards as unfair compared to those with similar attributes. Thus crime would be more widespread although it would be conceded that discontent would be greatest amongst the socially excluded. The future integration of anomie and relative deprivation theory offers great promise in that relative deprivation offers a much more widespread notion of discontent and its emphasis on subjectivity insures against the tendency within anomie theory of merely measuring objective differences in equality (so called ‘strain' theory) whereas anomie theory, on its part, offers a wider structural perspective in terms of the crucial role of differential opportunity structures and firmly locates the dynamic of deprivation within capitalist society as a whole. To be completed: Application: Conclusion: Bibliography

Outline the required contents of the Airplane Flight manual and the Essay

Outline the required contents of the Airplane Flight manual and the Aircraft Maintenence Manual - Essay Example Currently, formats and contents of airplane and rotorcraft flight manuals are stipulated by the General Aviation Manufacturers Association’s (GAMA). An airplane manual has numerous sections that contain adverse information concerning the model of the aircraft at hand. This section provides the fundamental descriptive information about the airplane and power plant whereby most manuals include a three-view drawing of the airplane that provides dimensions of various components. Some of the components included in this section are airplane’s wingspan, its maximum height, overall length, and wheelbase length (American Flyers, 2014). The last part of the General section encompasses abbreviations, definitions, explanations of symbology, as well as some of the vocabulary used in the manual. This section comprises of the delimitations required by the regulation and that are crucial for the safe operation of the aircraft, systems, equipment as well as power plants. It comprises of operating limitations, instrument markings, color coding, as well as basic placards (United States, 2007). Airspeed, weight and loading distribution, power plant, and flight are some of the limitations areas that are included in this section. The Normal Procedures section starts by listing the normal airspeed for normal operations, several checklists that may include preflight inspection, before starting procedures, starting engine, before taxiing, taxiing, before takeoff, takeoff, climb, cruise, descent, before landing, balked landing, after landing, and post-flight procedures (United States, 2007). Amplified Procedures area may be provided so as to give more details about the diverse procedures. This section contains all the information required by the aircraft certification regulations, and any additional performance information the manufacturer feels may enhance a pilot’s ability to

Career development Essay Example | Topics and Well Written Essays - 2000 words - 3

Career development - Essay Example A large number of studies have shown that there is strong relationship between academic performance and self-efficacy beliefs of an individual. Self-efficacy reflects in every action of a student including their activities, extent of hard work, performance, behavior and determination during tough times. Thus, this paper aims to enhance and investigate the extent of self-efficacy and for this purpose, a few exercises have been provided including action plan for improving self-efficacy as well as psychometric tests. Having high self-efficacy allows a student to make reasonable success in academics whereas low self-efficacy causes a student to avoid tasks. It has been argued that individuals having high self-efficacy work harder, accept challenges, and stay determined during complex situations. Prior mentioned personal development plan has been created in order to improve self-efficacy in the areas of self-confidence, academic performance, and employability skills. It must be borne in mind that these three elements play a vital role in enhancing and expanding self-efficacy. Therefore, a few activities have been provided for each of the element in order to enhance overall self-efficacy of an individual. First, for making some improvements in academics, one has to plan how to handle varying courses so as to take good grades in each one of them. If there is an option to select courses on our own, then course selection must be balanced. For instance, a couple of complex courses can be taken with two or three easy courses. Apart from courses, a student needs to participate in seminars, debates, and presentation in order to get the snapshot of real world scenarios and to stay in touch with current events. Students also need to improve their reading and writing skills as well as keep a daily schedule of everyday studies. Building self-confidence is another important field. Self-confidence can be enhanced

Recommendation for London Business School Essay Example | Topics and Well Written Essays - 750 words

Recommendation for London Business School - Essay Example This will give readers an understanding of why it is that you are qualified in recommending Gregor. Why do you think the applicant would be a good fit for the MiF programme at London Business School?* I had the pleasure of working with Gregor for one year in a team specialised in Equities. During this time, I observed Gregor as a hardworking, highly motivated and enthusiastic individual. From the beginning of his career within Bloomberg, he was involved in different interest groups such as, Launchpad Group, where he quickly became the central point of contact regarding the global implementation of this function. He was soon training the Analytics Department and actively involved in the recruitment process, carrying out interviews for the candidates and becoming a highly respected mentor for the new employees. I am convinced that Gregor would be a good fit for the MiF programme since he has professionally demonstrated the necessary skills to be successful at LBS such as, leadership, enthusiasm and analytical thinking. Due to his impressive language skills (he is fluent in English, German, Polish and Spanish) Gregor is able to communicate and work in an international setting, characterizing the work environment at LBS. The experience he has gained in well-known multinational companies in different European countries, allows him to understand customer needs and provide tailored solutions related to financial queries. The best testimony for Gregor’s abilities is the numerous positive comments he has received from our clients, admirably highlighting both his professionalism and the great attitude he will bring to class discussions at LBS. Besides the outstanding level of professionalism, Gregor also has a proactive and hardworking character aptly demonstrated when participating in student and work groups at our school. Thanks to his numerical skills, which he displayed by preparing weekly statistics regarding team productivity, and excellent financial knowledge demonstrated when dealing with high profile clients from the Finance Industry, he is perfectly equipped to be successful in the MiF Programme. To summarize, I highly recommend Gregor for the MiF Programme at LBS based on my own experience with this programme and excellent experience I gained by working directly with Gregor. His enthusiasm, knowledge and outstanding character make him a perfect candidate and a good fit for London Busin ess School. How do you think the applicant would contribute to: 1) The study group and classroom environment* Gregor has a very good understanding of financial concepts based on his studies and work in the financial environment. This allows him to approach complex problems and communicate solutions in a structured and logical way. Moreover, he is keen to learn and is not afraid to ask questions which will be of advantage in classroom discussions. His international experience, friendly disposition and hardworking character will allow him to adapt easily to any study group and contribute immensely to the team results. 2) Student clubs and the wider School community* Gregor demonstrated a great level of enthusiasm within our company when he was involved in different projects (such as Global Launchpad Campaign or volunteering projects to help homeless people). Because of this, I strongly believe that he will continue to work in various student groups within our School and increase their popularity. Due to his work in the Sales Department, Gregor has built a significant network efficiently (try not to use future tense, like â€Å"he could†, be affirmative and boldly state that â€Å"he can† etc.) organising new projects with important partners from economy. Furthermore, he has significantly contributed to existing student groups by using his exceptional knowledge about

REDD+ Article Example | Topics and Well Written Essays - 1250 words

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PESTEL Analysis of TopShop in China Essay Example | Topics and Well Written Essays - 500 words

PESTEL Analysis of TopShop in China - Essay Example The decision came to public knowledge in 2007when Top Shop signed a deal to own a store in Shanghai Super Brand Mal which is located in the hub of financial activity in China. The intervention of Chinese government in the economy is very high. This is because China has the social system of government. As a multinational the competition laws are very important. The local government must give foreign firms equal opportunity in the market. This is a severe issue in China, as the government supports its local companies at all cost. The Economy of China is booming and has the fastest growth rate over the last two decades by a long margin. After the economic recession in the western world, china has further gained a very dominating position in world markets. The GDP of China is reported at 4.91 trillion USD. Moreover a staggering GDP growth of 8.3% has been shown by China. Another important factor is the increase in per capita income of Chinese people. This factor is directly related to investment decision of a apparel company. The society of China is quickly changing. There was a time when china was called a city of bicycles. The situation has however changed over the last few years. The increase in income levels of Chinese consumer has ensured that their life styles have also changed. New imported Mercedes cars can be seen on streets of China. Fashion icons such as Gucci, Dolce, Zara etc are part of this new social shift in Chinese culture. China is equipped with latest manufacturing technology. The fact that they are the world’s largest outsourcer is a testament to this statement. The Chinese government has long fostered a culture of importing and locally encouraging the use of latest technology to foster China’s growth as the world’s first choice in outsourcing. Due to its very large area China experiences a diverse range of climates. The northern zone has a day time temperature of more

Discussion Question wk5 dq2 Assignment Example | Topics and Well Written Essays - 250 words

Discussion Question wk5 dq2 - Assignment Example (Larson, 2010) Interactive marketing on the other hand targets on even a more micro level and focuses on individual customers. Its requires active participation of the customer aswell to engage in the marketing process. Hence is more effective means of communicating and providing information regarding the product. The marketing technique will vary depending upon the type of product. In my opinion I shall use interactive marketing as I would like to build my product as a brand through inclusion of suggestion given by the customers regarding my product. Whereas if direct marketing is chosen , due to the clutter consumers have stopped paying attention to direct marketing approaches due to too much clutter now. The main disadvantage of direct marketing is that people are reluctant that their information may be provided to other advertisers and they’ll get bombarded with promotions and advertisements. Also when your information is in a database there is no way through which you can opt out the list so that you don’t get any further promotional offers or advertisements. Also due to the clutter now , direct marketing is losing its effect as consumer are reluctant to pay attention to similar offers and ads by many new similar

Nursing Assignment Example | Topics and Well Written Essays - 250 words - 15

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Class and Gordon Ramsay's Kitchen Nightmares Essay

Class and Gordon Ramsay's Kitchen Nightmares - Essay Example Gordon Ramsay’s Ramsay’s Kitchen has already transcended beyond cooking and good taste. Gordon Ramsay’s success became a gauge and to a certain extent a barometer of the desirable values that society should emulate. Ramsay’s values for example such as hard work and neoliberal individualism was idealized that even his less than ideal characteristics became part of the acceptable culinary identity. As a show, Ramsay’s Kitchen has to provide entertainment value to its audience for the show to remain relevant but the manner it provides entertainment triggers extreme reactions due to Ramsay’s unorthodox and outrageous approach to entertain its audience. The jokes employed by the show may have served its purpose to elicit emotional response from its audience but it also creates class distinction as those who are not able to contend with the swagger of the jokes of Ramsay are often relegated to as low class. Even the structure of the show where apprentices are supposed to be students became a symbol of class distinction as they became subservient to the chef and therefore are subjected to classist derision affirming the power and superiority of Ramsay in culinary world not only in terms of culinary competence but also in employing power in the totem pole of chefs. This extends to language where power seems to provide license to the Ramsay show where swear words did not only become an expression of disgust but also an expression of superiority and power. Class differences also extended to gender as Ramsay’s Kitchen Nightmares represents the value of male dominated society as the show embodies the middle-class male dominated masculinity. But this may be necessary as most of its audience are composed of middle class where it derives not only its ratings but also its significance as its values are reflective of the middle

A Synopsis of the Movie I, Robot Essay Example for Free

A Synopsis of the Movie I, Robot Essay I always asked myself if those stories about robots overcoming humankind will become real. Sci-Fi books are being my favorites since I was a kid and I watched every major movie about this subject. My favorites is â€Å"I, robot† that tells the story of a society in the future that relies on robots for all its domestic activities, but somehow one of those robots became aware of his own self and started to develop a mind, but most important, a soul. The robot started to develop a sense of what is right and wrong, and not because some program installed in its memory or an algorithm protocol of orders, it begun making decisions not based on instructions or learning by mistake process, but by searching deep on its â€Å"heart† what was the right thing to do. The robot’s name is Calvin and the movie, starred by Will Smith, is based on a set of short stories by Isaac Asimov, prolific writer considered a master in hard science fiction. On his â€Å"I, robot† short stories, one of them titled â€Å"Three Law of Robotic†, and which he considered his maximum contribution to human kind of the future (Asimov wrote the book on 1950), he came up with three laws that he thought a future society must input on robots in order to coexist with them as part of their day by day living. Those laws are: 1. A robot may not injure a human being or, through inaction, allow a human being to come to harm. 2. A robot must obey the orders given to it by human beings, except where such orders would conflict with the First Law. 3. A robot must protect its own existence as long as such protection does not conflict with the First or Second Laws. These laws seem to be really basic, but their logic really doesn’t have any gaps, at least at first impression. When Calvin (the robot) encounters a conflict with those commands, he started to develop its artificial intelligence and becoming more human. When Calvin is in a situation that its deactivation will be harmful for his two human friends, he decided to fight for his existence, and a new era of robots was born. Like Asimov there are several authors and scientists that predicted a future where robots and artificial intelligence are a big part of society. And they have reasons to believe on this. After the Industrial Revolution took place, we have being searching for more productive ways to increase manufacture. Industrialization and mass production levels demand better, faster and smarter ideas to satisfy the greater demand of consume based societies. To achieve those exigent goals, technology and specially robotics is used more and more often. Some factories are made only on robots that build equipment parts or process food in a way no human can do. Major companies know where we are heading and invest more and more in robotic technology and artificial intelligence, like we read in the following citation of the article of Nicholas Carr â€Å"Is Google Making us Stupid?†: â€Å"Where does it end? Sergey Brin and Larry Page, the gifted young men who founded Google while pursuing doctoral degrees in computer science at Stanford, speak frequently of their desire to turn their search engine into an artificial intelligence, a HAL-like machine that might be connected direct ly to our brains. â€Å"The ultimate search engine is something as smart as people—or smarter,† Page said in a speech a few years back. â€Å"For us, working on search is a way to work on artificial intelligence.† In a 2004 interview with Newsweek, Brin said, â€Å"Certainly if you had all the world’s information directly attached to your brain, or an artificial brain that was smarter than your brain, you’d be better off.† Last year, Page told a convention of scientists that Google is â€Å"really trying to build artificial intelligence and to do it on a large scale.†Ã¢â‚¬  There is no doubt for me that there is a future where robots will be everywhere: Some robots might be performing precise heart surgeries, controlling traffic and overseen proper transit on the streets, cleaning our houses as domestic service or maybe even teaching English Composition at the local Community College (no offense to Ms. Patrice Fleck), but let’s be ready if some day they become aware of their own existence, giving the next step on their evolution as metallic beings. Let’s hope that their intentions towards us are attached to the Three Laws of Robotic stipulated by Asimov, they could be the difference between our survival and coexistence, or our total annihilation.

Knauf Corporation Case Study

Knauf Corporation Case Study The following assignment is a case study, in which we are going to analyze the Knauf Corporation worldwide, but mostly the operation of the business in the European countries. The objective of this assignment is, by analyzing the operation of the company inside Europe to be able then to recognize, whether we see a common strategy or if there are any differences on it. In the first part, there is a research about the organizational function and the activities of Knauf worldwide and mainly in the European environment, starting from the past until the year 2009, where you can see the latest actions of the company. In the second part I will concentrate my analysis regarding how the general strategy of the company is differentiated depending on the local requirements, laws, cultures, market potentials, etc. In the end of the assignment we will make an analysis of the Greek market in order a close idea about the business operation. 1. Companys history and profile Knauf Group is a multinational producer of building materials and construction systems based in Germany, in Iphofen, where the head quarters and the master plan are located. In Iphofen exists also the historical museum of the company. Knauf is a family name. The Company began its operations in 1932, when the brothers Dr. Alfons N. Knauf and Karl Knauf established the firm Gebr. Knauf. It was a difficult beginning and at this time, no one could have thought the future big development of the company. Knauf finally became a multinational producer of building materials and construction systems, operating with more than 150 production facilities worldwide. Today the company ranks among one of the worlds leading manufacturers of building materials. Knauf has a workforce of 22,000 employees in 40 countries and in 2009 the company achieved sales of 5, 5 billion Euros. The product portfolio varies from the traditional plasterboard to the production of conveying machinery for construction site logistics, including the segments of gypsum plasters for interior and exterior use, insulation materials made of glass fibers or expanded polystyrene. The wide-ranging assortment also includes some other very special products as gypsum fiber boards for walls and floors, as well as a variety of special ceiling systems. The final aim, which comes out from this wide range of products, is that Knauf Group always focuses its efforts in being the leader producer in the construction sector by fulfilling any requirement of the architects, planners, building developers, etc. A strong characteristic of Knauf is the continuous courage for visions, innovation and investments as well as simple decision-making processes and a wealth of ideas on the part of its personnel. Despite the fact that the company is so large the CEOs of the company Nicolaus and Baldwin Knauf insist that the company is a family business, since it is still managed worldwide by the second and third generation of the family Knauf. The company doesnt belong in any stock market and every investment is created by their own profits without loans from the bank or any other external fund. 2. Companys structure and operation Gypsum plasters (core selling material of the company) The Group started to go international as early as the beginning of the Seventies of the last century and the trend has continued until today. Today the Group produces and sells its products in all European countries. In the developed countries such as E.E. countries, Turkey, Russia etc., the company has production facilities. According to the market demand in some occasions there are two or even three plants, whereas in small countries as Cyprus for example, there is only a local branch and the market is supplied with materials from Knauf Greece. Furthermore, there are factories located in North and South America, in the CIS states, in Northern Africa, in China and in Indonesia. Insulation materials Whereas in earlier times the sectors of dry construction and here we mention plasterboard as the primary product and gypsum plasters were the traditional areas of activity of the Group, meanwhile the insulation materials segment has developed into a further mainstay of the Group. The foundation stone for this was laid in 1978 when a glass fibre manufacturing company in Shelbyville, USA, was taken over. Today the company bears the name Knauf Insulation USA and operates a total of four production sites in the United States. The production of insulating materials on the basis of glass wool and mineral wool becomes more and more important. For about 30 years, the company has gained experience in the production of glass wool in North America. Within the last 5 years, Knauf has acquired 10 glass wool and mineral wool factories throughout Europe and additionally built new plants in Eastern Europe and Russia. Emerging and acquisitions activities Focusing before some years in the developing strategy into further segments of construction, where Knauf didnt have experience, the Company needed the knowledge and the facilities of existed companies well known for their quality in their field. Some of them were bought from the group in order to serve all the local Knauf companies with the special products that theyre producing. Some of the companies that have been bought and managed now from the group are AMF, Danogips, Marmorit, Sacret, Richter Systems, Knauf Perlite, Knauf PFT, Knauf Alutop. EUROPAK3 Most of these companies are selling their products only via local Knauf businesses. The interesting point is that the group doesnt hesitate to change its policy according to the target groups, different distribution channels and market needs. Being more specific, for example AMF Company is operating as a different business in the local markets, who sells products to the local Knauf businesses, but also to several wholesalers for example. PFT Company, which is occupied in machinery equipment (totally different market segment), is also developing separately from the local Knauf businesses in the European markets in order to serve other distribution channels and target groups. Knauf insulation, which is a totally different company is as well acting separately in the markets and sell its products directly to wholesalers without local Knaufs help. In many occasions in the European countries they are also selling only via local Knauf businesses. An interesting history is about a merging that the group has made with its one of the biggest competitors. The company USG is the market leader in United States producing and selling the same range of materials. United States of America is too much mature market in constructing with dry wall systems. Knauf group realized a big gap before some years in their product variety. They didnt have a board suitable for exterior constructions. Then the idea came from USG that had been producing a cement board, which is the ideal product, if someone wants to construct exterior walls facades for example. Then Knauf group in order to gain the technical knowledge and experience in cement board market, has been cooperated with USG. They have created together a joint ventured company under the name Knauf USG Systems, which is an independent company located in Germany and its aim is to produce and sell cement boards in Europe, Middle East, and Africa but only via the local Knauf businesses. 3. Organizational structure Knauf local businesses are managed by CEOs that usually are locals. The Local CEOs are supervised by the regional CEOs who are usually coming from the Knauf family. The local CEOs are fully responsible for the local organizational structure. Usually there is the plant manager, a logistics manager, sales and marketing managers, IT managers, technical department and sales department. Depending on how big the market is, sometimes as in Greece for example the technical department is merged with the sales department, which is finally consisted from sales engineers. 4. Vision and Mission The Knauf vision stems from the model on which the company is based: From a family company to a family of companies  [i]  . Knaufs mission is to remain a family which will always include its employees, customers and consumers. The company mainly emphasizes its philosophy on the following: Sustainability, Ecology and economy. The company produces economic construction systems based on raw materials that come straight from the earth and are completely friendly to people and the environment. Plan innovations to meet tomorrows requirements. To be the market leader in the building materials industry Focusing in long term growth and continuous increase of companys value To be as good as the sum of its total employees. The company depends on its employees skills, efficiency and creativity. In that sense production plants are designed to be pleasant to work in, efficient and to ensure a conscientious approach to resources and the environment. Quality management is a key factor for the group 5. Knauf Business and Marketing Strategy model 5,1 DISTRIBUTION Knaufs general strategy is to sell their products only via wholesalers. These dealers can then sell products further to second hand dealers, contraction companies and technicians (Knauf system installers). This model can be changed if a local market is used to work with another way, as for example in Northern Africa countries. In Europe this strategy is generally followed. 5, 2 TARGET GROUPS If we follow the whole chain of construction industry, we all know that Architects are planning the projects which means, that theyre specifying materials (they create the demand). This means that they are the main decision makers in the construction chain. Contractors are taking over to complete the project, and the technicians as sub contractors they are installing Knauf systems. As you can easily realize, Knauf target groups are all the above mentioned groups. Companys concept, is to follow the projects from the early start of the planning until the final procurement. And that means, that they support all the phases of the construction by being present and service with technical support all the groups referred. In addition they focus a lot to the individuals (private investors). Individuals are Knaufs long term objectives, since they strongly believe that they are at the end of the day the basic mean of continuously adding value in the company and make their products even better known to the market. This sector is going to empower the already famous Knauf brand in the market, and of course the materials demand. 5, 3 COMMUNICATION PR ADVERTISEMENT In this paragraph, Im going to show you a small part of the general ideas regarding the companys marketing approach. Knauf in Europe proceeds in specific advertising actions to introduce its products variety in its all target groups. This marketing approach operates since the start of the company and it is already very successful. A very important thing in business is to follow up your customers. Thus, Knauf via its CRM system saves its contacts and post them direct mails. In addition they are also sending e-direct mails, as is the Knauf monthly newsletter or any other subject they would like to promote. Moreover, theyre participating in exhibitions which are usually taking place in the construction concept with target groups from architecture, planning, decoration, etc. Another way of advertizing is by creating inputs in magazines for architects, contractors and technicians. Except of magazines, they also make inputs in newspapers and daily free presses, so they could be able to approach also the individuals. TV spots, radio spots are as well important ways of advertising their systems. Knauf invests a part of each turnover to offer free advertising gifts to its customers. These gifts might be templates, banners, signs, flags, samples, vehicles and memorial gifts, all having as design the Knauf logos and the Knauf partner s logos as well. Local technical documentation and web sites are other ways to find information for the companys products. These documents are very well developed and they obviously offer an assured technical support to the customers. The corporation invests a lot in education regarding its systems installation. Every local business has its own training center where seminars are taking place in certain dates every year. Those who have participated in the seminars are taking in the end a Knauf graduate clarification that writes Mr à ¢Ã¢â€š ¬Ã‚ ¦ has successfully participated in the Knauf seminars the datesà ¢Ã¢â€š ¬Ã‚ ¦ And this small thing makes them feel that they belong in a special group. Consequently they spread this idea to other people. 5.4 POSITIONING Knauf continues to increase a premium brand and separate its position against competition. Thats why the corporation always invests in developing new products and improving the old ones. 6. Gypsum Industry Market Analysis Europe The gypsum industry belongs into the broader industry of building materials. For the scope of our assignment we will only analyze the gypsum industry and especially the European Gypsum Industry as Knauf is mainly active into the European market. The European Gypsum Industry is characterized as a growing industry in comparison with the US or Australian Gypsum Industries which are already in the maturity face of their life cycles. With a turnover of over 10 billion à ¢Ã¢â‚¬Å¡Ã‚ ¬, the European gypsum and anhydrite industry operates 160 quarries and some 200 factories and generates employment directly to 28.000 people and indirectly for 85.000 people. It is one of the few fully integrated industries within the construction products field. Thirty years ago, the Gypsum Industry was made up of many small manufacturing enterprises mainly producing building plaster and stucco for local markets. The emergence and growth of the plasterboard and the plasterboard solutions market in the 1980s requiring high capital investments, equipment, RD and securing access to natural resources led to a consolidation process within the European Gypsum industry. Currently in the industry nowadays three main operators cover 80% of the gypsum product market  [ii]  . These are Knauf Group of Companies, BPB (British Pasterboards) and Lafarge. BPB, a UK based manufacturer, acquired by Saint Gobain in 2005 and organized within the Saint-Gobains Construction Products Sector  [iii]  and Lafarge, the well known building material manufacturer, established in 1833 in France initially as a limestone mining company  [iv]  . 6.1 PEST Analysis In analyzing the macro-environment via a PEST analysis, we can configure the environment which gypsum industry producers compete and identify the factors that might in turn affect a number of vital variables that are likely to influence the organizations supply and demand levels and its costs. The European building material industry is not that vulnerable to Political issues but into the Greek Construction Industry political issues arise more frequently as the support from the European Union funds have major role into Construction Industry growth rates. From 2001 till 2009 where more and more privately funded big real-estate projects were implemented the industry was growing very fast but the economic pressure that affects, for the last year, all companies and investors involved is slowing down the rates of the industry. In such critical times, most governments are identifying its policies with social and environmental care policies. Into the construction environment there is the need, more than any other time, of energy efficient buildings and construction techniques that exploit those advantages, and governments in assessing the socioeconomic impact of energy spending reduction are already subsidizing such constructions through government or EU fund raising. Technology i tself was always the main concern of producers in order to find ways of reducing their production cost as well as to invest in new RD fields, such as antiseismic technology, for exploiting the unique advantages of gypsum. 6.2 SWOT analysis European Gypsum Industry is a growing one and most European countries only now capitalize the advantages that gypsum offers as a building material. Gypsum is virtually indispensable for the interiors of homes and offices and all types of building where people congregate, such as schools, shops, airports, etc. Its superior performance in providing everyday comfort, in fire resistance and in insulation, heralds an ever greater role for it in buildings of the future. In fact, the safety and protection of people and property against fire, and effective thermal and acoustic insulation of buildings depends, more often than not, on the unique properties of gypsum. And many of the attractive features of the modern interior would be impossible without the versatility of gypsum as a building material. The gypsum wallboard industry is highly competitive. Because wallboard is expensive to transport, does not travel well in large quantities and lacks of product differentiation, producers compete on a regional basis, primarily based on price, product range, product quality, and customer service. The sector is highly competitive especially in Europe and North America with production mostly concentrated among few international players. The drywall solutions are seen in growing countries as a substitute for traditional construction solution like for example cement and brick and block constructions. The unique advantages that systems offered to the engineers made them a huge threat of substitute for the traditional techniques. But, soon the industry will be into the maturity face and new innovative and evolution building materials like magnesium or perlite have already started to threaten gypsums raising empire. The industry has to invest into new materials, new technologies and diversify towards innovative building material and construction system solutions. The capital investment that is required in order to enter into the gypsum industry is high. Equipment is expensive, know how is difficult to acquire, access to natural resources is prohibited and investment in RD is mandatory. That is why in very few years the European Gypsum Industry from the state of many locally situated small producers it transformed into an extremely concentrated market where three companies cover approximately 80% of the market. In global level the same concentrated situation is observed where 81% of the market is covered by 7 players (Georgia Pacific, Knauf, Lafarge, National Gypsum, Saint-Gobain, USG and Yoshino) The Gypsum Industry covers the whole life-cycle of the product. Indeed, the companies which extract the mineral gypsum also process it and manufacture the value-added products and systems. The full integration that characterizes the industry is a fact that removes any danger of suppliers bargaining power but at the same time it leads to higher production costs for the producer. The ownership of the gypsum reserves is a power game between the main competitors of the industry as it is at the same time a main clue of product differentiation and product quality resulting from the mineral gypsum purity. Gypsum reserves are now rare around Europe and that turned the producers to invent new technologies by producing synthetic gypsum mainly from fly ash which is a byproduct of energy production plants. The industry is mainly selling through an extensive dealers network in each country. Those dealers are commercial companies selling a series of building materials either to contractors or consumers. In Western Europe more mature markets dealership is also concentrated into few very big companies (Praktiker, Leroy Marlene, OBI etc) which due to its size and concentration they have already obtained a big bargaining power over the producers. Into the Greek market the dealers network is still based on small, unorganized depots with no special power over the industry but big retailers are already into the market and soon the situation will change. 7. Key Success Factors of the Gypsum Industry The following factors have played a major role in a gypsum companys prosperity: Cost advantages and economy of scale: The recent trend of acquisitions and mergers exploit potential cost advantages to be found in RD facilities serving global operations. They create larger and more diversified market focused organizations. All the top performing companies in the industry have faced, at least once, a major merger in the past. In 2005, BPB, one of the top 3 companies of the industry in Europe, was acquired by Saint Gobain which invested 5.9 billion à ¢Ã¢â‚¬Å¡Ã‚ ¬, for setting itself a step ahead from its major competitors in the building materials industry. Access to natural resources: As previously noticed, the Gypsum Industry covers the whole life-cycle of the product and producers strive for securing reserves all over the world. In that industry, due to the cost structure, privileged access to the raw material is vital for the companys growth. For that reason, companies started investing either in finding new ways of composing synthetic gypsum from several sources (e.g. energy plant waste) or by implementing systems for recycling their the products at the end of their life cycle (demolition waste). Differentiation through technical specifications and customer service quality: The main target for all producers is to offer a complete solution with their systems of products in order for engineers to be able to substitute traditional ways of building. They managed to specify with standard norms the use of the plasterboard walls, ceilings, floor or any other use as well as their technical characteristics like fireproof, sound insulation, thermal insulation etc. With the combination of professional sales and technical support as companies are using only engineers for sales reps with extensive and professional training, in order to serve customers and specify the systems in a market that is constantly gaining market share from the traditional construction methods. 8. Greek market analysis As we previously noticed, into the Greek market there is also one competitor to Knauf, Rigips Hellas (BPB) with one production site situated in West Greece. Both companies have their own reserves of the raw material close to their factories which are both situated into the same geographical area resulting to equivalent quality levels of raw material. A main difference is the production capacities as well as the plants sizes. Knauf operates a plant that was build from scratch in 1991 in Amfilochia, while on the other hand Rigips acquired some years after Knaufs establishment in Greece an old gypsum factory from a local producer. That explains the estimated difference in local production capacities for the two producers. Having the appropriate capacity levels, Knauf can control its production cost and overheads better than the competitors and therefore result to higher margin levels. Knauf from 1991 invested a lot of money for differentiating through technical specifications and customer service quality. In order to achieve that high level engineers were recruited and were extensively trained into Germanys headquarters. The experience and professionalism of the mother company was soon transferred into the Greek subsidiary and the company culture was quickly transformed according to the following: The future lies in the hands of talented and highly motivated employees. An important aspect is the family culture which prevails in the company: Learn from one another, hold together, pass on knowledge, assume the role of mentor, take fast and direct paths and press for special achievements  [v]  . In very few years, almost 10 professional engineers were covering all the Greek territory offering technical support to contractors, extensive training to installers and professional customer service to retailers. Rigips which was established a few years later used same techniques for expanding into the Greek territory but always by following Knaufs steps. That was something that reduces its cost for training the market into new building materials but cost them the reputation of the leader in the market. Knauf was and still is characterized as the leader industry in the gypsum market in Greece. Their competitive advantage in the market is the ability of its people to open the market, train the customers and lead to a new age in construction industry. All the above are mainly achieved by the following: A huge database of active engineers is informed once every month by direct mail regarding new and innovative solutions. Over 7.000 installers are trained for efficient installing drywall systems into Knaufs Training Centre in Amfilochia. Retailers are supported by professional sales engineer all over Greece. Finally, Knauf has invest a lot in marketing by extensive advertising into press, technical magazines, radio and TV, by providing signs to all its retailing network and by participating into all main fairs in Greece. Rigips havent tried to differentiate significantly from Knauf into the market. They have not invest as much as Knauf into penetrating and training the market and their main position in the market is to let the leader open the way and then to follow. The main differentiation point for the two companies was the price. Knauf is the leader and for that the customer has to pay a premium. 9. Strategic recommendations Conclusion As we saw in this assignment Knauf Corporation is developing in Europe with a certain way which is driven by the values, the culture, the ethics and the historical success model, that the family developed for their business. However, we also saw that several differences exist, depending on the needs and the culture of the local markets. Such differences for example could be the style of the management, the variety of products, the developing of the other corporate businesses and so on. Knauf family believes a lot in the different local adaptation of their business model and this is visibly proven from their willing and trust to choose local people as general managers to run the business in the countries. They invest a lot of money and efforts in order to find the correct person who is going to implement Knauf successful business style according to the local needs. Knauf group has proven its ability to penetrate, train and lead new markets. As a group it has a promising future as it is in line with the major key successful factors for the industry. Its competitive advantage is very strong and it is implemented into most countries in the world as it is into the Greek market. The industry is highly competitive and it is getting more and more concentrated. In order for Knauf to continue growing into such a competitive environment it needs to diversify its building material portfolio into more developing and profitable markets. Such a market is the insulation material industry in which the group recently invested by acquiring a lot of local producers in Europe and becoming the worlds fastest-growing insulation manufacturer with full ownership of its activities since 2002. Finally, Knauf should invest into countries that are structurally unexploited like for example in Asian or growing African countries initially by securing raw material reserves into strategic places.

Corporate Strategy for Iranian Car Industry

Corporate Strategy for Iranian Car Industry Abstract The purpose of this research is to come across an effective and implemental strategy for Iranian car industry to become an export player in the Middle-East region. With consideration the importance of market development for international auto makers, the Middle-East market is evaluated and Iran as a case study is looked over in terms of its potential automobile market and developing opportunities in Iranian car industry to become a manufacturing partner for international players. Through out a review of Iranian economy and the position of auto sector in Iran economy, the difficulties of growth and development, the role of government- as the regulator- are discussed briefly and the effect of international auto makers -in the past and future- is analyzed. On this basis, we point out the main troubles of the current auto industrys structure and the government dilemma to set its policies. At the end we suggest a reform in the structure and strategy of both assemblers and suppliers to ent er to the international markets. Keywords: Operation strategy; Iran auto industry; Globalization, Regionalization, Industry study Introduction Irans economic performance has begun to improve slowly after a decade of recession which was caused by the long and costly war with Iraq and fluctuations in oil prices. In the decade ending in 1998, GDPs growth per capitals started to rise, although the average was only 3 percent per year. (Economic reports, the World Bank Group) The automotive industry, as one of Irans most promising industries, was the countrys fastest growing industry with the average annual growth of 27.2% between 1995 and 2000 which was 5.5 times of the country average industrial growth. (Economic Focus, Iran Daily News). The domestic vehicle production is growing quickly but it is highly protected, and only in highly exceptional circumstances can Iranians import cars from abroad. Locally produced cars have a reputation for poor quality and have contributed to the dangerously high pollution levels. Also, Iranian firms were not able to satisfy the domestic market in terms of quantity. Demand for automobiles, particularly passenger vehicles, far exceeds the supply. In fact, more than 450,000 people pre-purchase automobiles every year and wait approximately two years to receive them. As a result the government, which wants to raise unit production and improve domestic industry in line with industrialization program, hopes to stimulate competition as part of the effect to make the economy less dependent on oil. In order to follow the market reform plans and provide better circumstances for the countrys main industries such as petrochemical industry, textile and etc, President Khatami (since August 1997- 2005) in 1999, announced an ambitious program to privatize several major industries which included auto industry as a part of total restructuring of Iranian economy. Currently 13 public and privately owned auto maker exist in Iran. The largest vehicle manufacturing company is Iran Khodro with an average share of 60.90% percent of domestic vehicle production, as the main government-controlled carmaker and Saipa is the second one with 32.70%. Subsequent to the development program, automakers have been encouraged to review the way in which their strategies will be developed in the future and to extend a range of strategy options that might enhance their position. Consequently, most Iranian auto makers have been encouraged to join ventures or any other strategic alliances with foreign auto manufacturers to meet the increasing demand (www.ikco.com). On the other hand, in looking at the automobile market generally, during the past few years, it might be observed that after a period of growth from 1997 to 2000 -resulting from the exceptional boom in US economy and the upturn in Europe-but the automobile market especially in North America and Europe has entered a consolidation phase because of overcapacity. The market is mature in developed countries such as those of Western European countries and US market where nearly 90% of sales of new vehicles are now accounted by replacement purchases. Also, in Far East-Japan and South Korea-, overcapacity is a highly sensitive problem (REINAUD, 2001), whereas in Middle-East region, vehicle out put is 6% of total global output in comparison with 29% in Europe and 30.2% in US (carmakers Annual report,*DRI). Thus, some auto manufacturers might be looking for new methods to penetrate the auto market in Middle-East in order to gain more market share over their competitors. If these companies do become partners, Iran will be an option to emerge as a major regional car manufacturer, serving the Middle East beside Other countries in the region, particularly Egypt and Turkey which have substantial car assembly arrangements. The following companies have signed cooperative agreements and their products are either already on the market or are to be introduced in the near future: Frances Peugeot with Iran Khodro. Koreas Kia Motors with Saipa. Frances Citroen with Saipa. Korean Daewoo and Kerman Motors. Optimus of the UK with Renus. Proton of Malaysia with Zagros According to the French automaker Peugeot, Iran has one car for every 21 people. Turkey has one for every 12, while Western European countries and Japan have nearly one car for every 2 people (www.peugeot.com). That indicates market growth potential, and the reason that foreign car manufacturer might be interested in the Iranian auto market. In this research the current auto industry situation in Iran will be analyzed and it will be evaluated in relation to its future strategy consequent upon growth in terms of output quality and ability to serve the domestic market, but also to play a major rule in region and become a truly international car manufacturer and exporter in Middle-East. To achieve a rich understanding of the current situation and examine the environmental position to meet the research objectives, other developing countries auto industry examples like China, India and Turkey will be investigated and analyzed as examples, while the regional circumstances, business environment and other specific characters of Irans economy e.g. the role of government , economic condition and Irans regulations will be considered to find out the most appropriate strategy for Iran car industry. The research question for the chosen topic is What would be the most effective strategy for Iranian car industry to become a major player in the Middle-East market? From this research question, the following objectives would be appropriate to evaluate: To evaluate existing methods of development strategy in the Iranian auto industry, To identify the best possible methods of development strategy for domestic and foreign companies, To recommend how such a strategy can be implemented. The background of the research is set with a brief discussion on the changes have happened in the world of auto industry, the consequent of globalization, the dynamic and diversity of demand in auto market and the auto makers difficulties to respond to new market characteristics while maintain the ability to make profit. Our goal in this paper is to propose an efficient strategy to . The paper has the following structure. Section 2 gives the brief literature review. Section 3 analyses the competitors in automobile Middle East market. Section 4 introduces the Iranian auto industry case. Section 5 presents the growth and development problems in Iranian auto industry. Finally, section 6 is devoted to conclusions and future works. The remainder of this paper is organised as follows. Section 2 summarises the development of Iranian production and exports in the car industry compared to other major exporters in the world. It also explains why Iranian export growth has remained much below production growth. Section 3 develops the empirical export model and describes the variables and data. Then, the model is estimated in Section 4. Estimation results are analysed and a sensitivity analysis is proposed. Section 5 estimates the Iranian export potential with regard to the main foreign markets, while Section 6 concludes. Literature review History of globalization Humans have coined the word Globalization to describe widely traded activities that take place across the continents which are aided immensely by diminishing international trading regulations negotiated through the World Trade Organisation. Globalization is a combination of many -manufacturing, trade in services, supply chain management activities which have been affected positively by a fast technological development in few last decades. As Friedman (1999) argues, what is new today is the degree and intensity with which the word is being tied together in to a signal globalized market place and village. What is also new is the sheer number of people and countries able to partake of today globalized economy and information network, and to be affected by them this new era of globalization is turbocharged. As it can be observed, that this noticeable international integration is not just in economics, but in politics and cultures are as well. However, it needs to be recognised that the speed of these changes and growth of integration is different across the world. In some countries and regions the trend of globalization is rapidly increasing while in other parts the pace is much slower and globalisation is not welcomed at all. Nevertheless, regardless of the effects of globalisation no country can afford to ignore its impact on their political and economical circumstances. Likewise, the rate of change is different in various industries as is the strategic response of different business sectors to take advantages of exploiting new business opportunities. Although the merchandise trade, capital investment and labour migration started from 1850-1914, and the economy was more open than it is today in terms of the existing tariffs and trade barriers, but it was not globalized. Just the year following the Second World War and through reconstruction of war, the world has started to establish institutions to open up trades and ensure currency stability such as GATT and IMF, which caused massive increase in the economic growth level. According to Dicken (2003), world trade increased at an average annual rate of 6.7 per cent between 1948 and 1953. Between 1958 and 1963 the rate rose to 7.4 per cent and between 1963 and 1968 it accelerated further to 8.6 per cent. So people experienced a boom period up to 1970s when the first oil crisis has occurred. The United States, which suffered less during the Second World War, increased its foreign investment and after a while the US companies started to move into Western European countries and create interdependencies across world markets. Europe and Japan which mainly focused on rebuilding their economies after the war joined in this and also expanded their positions in the market place and on the economic map after the mid-1980s. (Hill, 2005) Also, because of the necessity of promoting global interdependencies, the United Nations was established to maintain world peace and security and so help the spread of industrialisation and world trade. The main drivers of globalization Apart from the history of globalization there were several main drive points that enhanced the process of globalisation. From the Johnson and Turners (2003) point of view one of the main globalization drivers was the changing economic paradigm. The new approach for managing economy was based on limitation the government role and neo-liberalism. Limiting the role of government provides the situations for businesses to progress and boom. As the Hill (2005) says, major changes occur as new economic and political institutions develop, with movement from traditional, non competitive institutions to competition-based capitalistic economies and democratic institution. So the market was relied on to force the pace of competition. Little by little the liberal economy became an external economic policy and the General Agreement of Tariffs and Trades (GATT) set up to support this philosophy. As a result of GATT and afterwards its successor organization- WTO-, there was a great reduction in tari ffs barriers and non-tariffs barriers for participating countries which help them established and spread their liberal economic policy. The second globalization driver is the spread of international governance and regulation. More international rules and policies developed for business environment, especially in regional level aimed at reducing the barriers in economic market among GATT contracting and WTO members. Also spreading e-commerce as a technological consequent has brought new issues in terms of traditional governance structure. Therefore, by passing the time and more international integration, the trade and market regulation were less under the national states control. According to Johnson and Turners (2003) argument finance and capital spread is another driver of globalization. Necessity of financial and capital movement following the market deregulation and economic liberalization has supported by national rules and has facilitated by technological development and ease the financial transactions. All might agree that the technological development, mainly in information technology and communication sector, has played an important role in globalization. However none of them is the cause of globalization, Dicken (2003) argued, without these technologies the current complex global economy system could not exist. Shrinking time and space by innovated technologies was a great opportunity to reorganization and redefinition the commercial and economical structure. Most of industrial sectors are affected by innovations and changes in technologies especially in manufacturing system with a high influence on value chain. Transportation technology has changed dramatically from 1840 to 1960 which was a development period from steam locomotives to high speed aircraft. Therefore, new transportation systems and their wide usage with cheaper prices have brought global shrinkage. Also in communication and its convergence with computer technology development has facilitated more effective networ ks within and between enterprises. All of these technological conveniences provide links across borders and spread globalization in economic term. Social and cultural convergence might be seen as a driver for globalization. The effect of mass media and usage of internet make the consumer preference more common in global market. As Johnson and Turner (2003) mentioned, similar taste of consumer in different parts of the market creates the opportunity to promote global product. So we can claim that the cultural and social similarities make the conditions available for globalization. Also transferring new technologies has brought about more products in greater varieties at lower costs and prices. Consequently standards of living and peoples expectations rise as well. Mode of entry and expansion methods In simple terms, globalization is an opportunity for companies to expand their market, their value chain and their business across borders. But the point is how effective can companies use these opportunities to make more profit and enjoy sustainable growth. What factors should they consider to make decision to choose an investment option to carry on their development strategy? Global supply chain and its dimensions Apart from different modes of entry available for firms to get advantages from globalization and to move across borders to expand their market, other advantages may be gained through developing global supply chains. The production of any good or service can be conceived as a production chain that is, as a transactionally linked sequence of functions in which each stage adds value to the process of production of goods and services. (Dicken, 2003) The firms try to differentiate their value chain in order to add more competences by using the advantages of each production chain requirement in different part of the world. However, build a global value chain might make it fragmented while the control and management of a global network is more difficult. From Dickens point of view there are three important dimensions in production networks: First is governance which means how they are coordinated and regulated. In the case which varying combinations and interrelationships of different kind of companies and firms might perform in a production network, As Dicken says, the market is the main organizer of external transactions, in contrast with the case which the entire network operated with a single firm and internal organizational structure governs transactions. (Dicken, 2003) The second important dimension in production network is spatiality and how they are conFigured geographically. By increasing the emergence of global production network, network organizing is changing from geographically concentrated to geographically dispersed. The third issue is territorial embeddedness the extent to which they are connected in to particular bounded political, institutional and social setting. (Dicken, 2003) information technology and other new technologies have made space and distances meaningless. Most types of capitals are mobile and all of them can easily move from one place to another. However transportation and communication technology has developed as well, capital does moves within spaceless world. Place is still an important issue, as firms are highly affected by the cultural, socio-political and institutional context of the territorial they are embedded. Therefore multinational firms try to take advantages of differences within regulations and socials in various places while, bringing different state with different regimes in count within a production network makes the situation more complex to control and to take benefits from. Since 1999 and strongly growth of globalization, the same as other important and effective phenomena, globalization has a positive view wave that strongly recommend it and a negative wave against it which moves from developing country to developed countries during these years. Arguments about globalization success or failures do not have any satisfactory result, while globalization can be observe and discussed to understand both negative and positive sides of it. Growth of regionalism Although the speed of globalization and integration in the world market has increased during past decades under the General Agreement on Tariff and Trade (GATT) and more recently by World Trade Organization (WTO), the regional agreement and the debate on the desirability of regionalism has grown as well. By the beginning of twentieth century most of the counties were part of a regional integration. However one might argue that the reason of regional integration is more political than economic explanation, it can not be ignored any more as almost 50 per cent of all world trade is within regional trade agreement. As a result of that, there is fear within WTO and other international institutions that regionalism takes the place of globalization and make a stumbling block toward further global trade integration. (Lung Van Tulder, 2004) Nevertheless there are different forms of regional integration and each of them affects global market more or less while the time of their integration pr ocess is various. The dynamics of automobile market Although some changes had happened in the composition and geography of automobile demand, the concentration of automobile industry in three major global regions face auto companies in these regions with the overcapacity problem. The highly market-oriented of automobile production caused its development be based on affluent consumer markets to achieve the economy of scale. But during the years, the automobile consumer markets in three developed region has developed as well. As Dicken argued in the Global Shift (2003), the changing demand for Automobiles has three major characteristics: It is highly cyclical. There are long term (secular) changes in demand. There are signs of increasing market segmentation and fragmentation. ( Dicken, 2003) The competitors Despite the fact that NAFTA, EU and Japan are the main developed region in both production and trade in auto industry sector, other countries have started restructuring this sector in line with their economic reform. The obvious example might be China and India which both are gaining a sustainable growth in the last decade. Also Turkey has emerged as a new automobile producer in line with other industrial changes aim to become qualified to join European Union. Turkish auto industry Turkey auto industry has been developing due to the well strategic planning applied by the Turkey government by the way in which they opened their country to the global world. They have started their industry as a montage (CKD or SKD) in 1960 and have turned it to manufacturing part after a few years in 1966 trough licensing agreement and dealer-assembler with American and European firms. Gradually the government attempted to adapt an export-oriented strategy; consequently it started to liberalize the importation of cars gradually and reducing the tariffs. Meanwhile it provided some financial supports for upgrading themselves to international acceptable condition. But the main change which caused a revolution in Turkey car industry was the customs unionization agreement in 1995 with European Union which followed by a new restructuring in their auto industry. To harmonization the administrative and regulatory structure of the industry, Turkish government has established an accreditation council to prepare the documents for new adaptation the issues and procedures of exporting in line with European countries. However the Turkey supposed to complete the adaptation and remove all tariffs by 2001, they have not completed it yet and it seems the Turkeys auto industry has not well prepared for full liberalization. Although adaptation a new regime from Turkey government which obligate importing vehicle companies to prepare service facility and aftermarket parts for customers within a country was a great opportunity for domestic firms to become involved with providing spare parts and services. Even though it was not a stable macro environment after 1997-1998 Russian and Asian crisis and again December 2000 crisis, the restructuring program caused some investment in car companies in Turkey in order to support economy of scale and encourage them to developed more update types of automobiles. Turkish manufacturers have operated in two car segment; low medium and medium models and the produced cars have already been phased out in their country of origin, added that these segments account for 90 per cent of the Turkish market. (Duruiz, 2004) Governmental financial supports and investment on auto sectors attracted many foreign investors from 1995 onward, especially with aim to develop new generation cars and modernization the industry. Most of foreign car firms have gained relatively high share of the auto industry after liberalization to use the resources in Turkey and export to European countries through Turkey. Table 1 shows the main auto manufactures in Turkey and their share. As the effect of custom utilization agreement, the automotive sector had the 5th place in Turkey exporting in 2000, but the main effect has happened in component sector and it has increased relatively higher then auto sector export. It was also easier for component producer to upgrade their standard of their firms to get a competitive position in EU base on their lower labour wages. (Duruiz, 2004) Nevertheless Turkey has accepted liberalization in their trade but as they have not done the full integration, their case has become special. Mostly the Turkeys future economy highly depends on the European Union decision to accept it or not as a member of European Union which lead to change their economic structure with the support from the IMF and European Union. Indian auto industry Emerging of India in the world economy has been started by implementing liberalization and opened up most of the economic sectors to the global world in 1992. Looking historically at Indian car industry, it can be divided in four phase from the view point of Kim (2004). The starting point was in 1920s with assembly which was established by foreign companies. (General motor and Ford) It took two decades up to 1952 that Indian build up their domestic production firm. The governmental policy in auto sector is known as the main reason of no progress in productivity and technology in this sector for long period. (Kim, 2004) The third phase was started, after three decades, by making a join venture of Maruti Udyog -became nationalized in 1980- with the Suzuki motor company. According to this agreement a revolution had happened in Indian car industry. Increase the volume and standard was not just in auto makers but the change was occurred in the components industry as well. (Venkataramani, 1990) The main and last phase was started by Indian economic reform after 1992 under the guidance of the IMF and World Bank. As it was anticipated, deregulation of auto industry in 1993 and the expectation of market growth in India according to the population have attracted international auto makers to invest in India. According to the foreign existence it was a dramatically fell of domestic firms share in India. Investment of foreign car makers, which were mainly in the form of joint venture with domestic firms, caused there-restructuring in the Indians motor industry. Apart from promotion of new models with more stylish design, significant changes have happened in auto financing as well. Also numbers of component manufacturers invested in local firms to supply their assemblers. So Indian witnessed a fundamental change in the technology, infrastructure and managerial systems. (Kim, 2004) Despite of all expectations and anticipations about the fast economical growth after regulations in India and a positive view of auto makers about Indian market because of the sizable population of middle-class, the estimates about rising in demand did not turn to reality. Apart from the problems which multinationals generally face in new emerging countries such as undeveloped supplier base, weak infrastructure and undeveloped regulations (Kim, 2001), Indian environment seems more complicated for them. Although the population was far enough to support ten auto makers, the companies face with overcapacity. The lack of demand in both domestic and regional market has become the major problem for multinationals auto makers in India. In terms of export from India to the neighbour countries also, the multinational car makers have not achieved any remarkable result. However the main reason might be the economic situation and poverty of South Asian countries which limit the demand for passenger car, we should not ignore the political and economical relation of India with its neighbour. Despite the hopes after the South Asian Association for Region Cooperation (SAARC) in 1985 and the South Asian Preferential Trading Agreement (SAPTA) in 1995, there was no significant growth observed in the South Asian trade relationship. Although the auto industry in India has not succeeded as it was anticipated, the auto component industry has occurred high progress in quality, technology and international standards. Now, in collaborate with foreign companies, they have become competitive in international markets and auto makers in India use their Indian suppliers to supply their other operation plant around the world. Moreover, Indian government regulations disable multinational to import completely build automobiles to India. However the Indian government did not define any limitation for on foreign ownership, instead 123 per cent tariff rates on import cars were forced multinationals to set up their assembly plant fully within India. And a high tariff on finished components also was another issue that multinationals prefer to find their supplier within domestic firms. (Kim, 2004) Despite of all mentioned problem in India, multinational car makers seems still have a positive view about the Indian market. The potential existing market is there, but the matter is that when it will become visible. Chinese auto industry Following the economical reform in China, the Chinese policy makers focused on auto industry as a symbolic sector which shows the industrial development within a country. The need for technology and knowledge caused them looking for foreign partner to provide the required technology by setting up assembly plant which also generate and improve numbers of domestic firms as the suppliers to support the main assembly plants. So, in the mid-1980 three main cities of China (Beijing, Guangzhou and Shanghai) established a joint-venture with foreign auto makers supported by central and local government. (Thun, 2004) Each local government aimed to improve the local supplier network by its JV, but the assembly plants were looking for the better quality and lower price. Therefore in contrast with the local government and despite of geographical advantages of supplying from local firms, assemblers were dependence on outside supplier and most of them imported 100 per cent of the components from outside unless they were forced by Chinese government to increase their required components from domestic firms. But even after the time assemblers shifted from outside supplier to domestic firms, the local government aim to improve their local network were failed as the JV sourced their parts from other regions. Therefore, as of 2003, just Shanghai could relay on their local auto sector and even though it did not meet the international standards, it became a dominant firm in Chinese auto market. (Thun, 2004) The Shanghai success was the result of well support and strategic plans of local government and Shanghai Automobile industry corporation (SAIC). In 1984, when the Shanghai established a joint-venture with Volkswagen (VW), non of local firms were able to supply the required component for the assembling plant and after two years their share increased by just 2.7 per cent. (Li, 1997) No significant achievement after two years caused Shanghai municipal government began to re-evaluate the problems within the sector and the capacity of individual firms to solve these problems. (Thun, 2004) Consequent of problem solving process, they discovered two necessity preconditions to facilitate improvement in domestic firms. The first one was a reorganization of the municipal bureaucracy responsible for auto sector oversight. They have set up an Automobile Industry Leading Small Group in order to control the local actors. (Li, 1997) The second precondition was the capital accumulation and investment. To solve this problem the local government defined a localization tax and set up the localization office which was responsible to carry out a straightforward import-substitution policy for the imports in auto sector even from other Chinese regions. Also, the localization office checked out the list of imported components and their domestic firms which are capable of produce them successfully, then it provided a suitable investment capital as well as managing the firms relationship with the main assembler plant. (Thun, 2004) Apart from the local government programs, SAIC had its own way to support the Shanghai auto sector, however in some areas their activities overlappe Corporate Strategy for Iranian Car Industry Corporate Strategy for Iranian Car Industry Abstract The purpose of this research is to come across an effective and implemental strategy for Iranian car industry to become an export player in the Middle-East region. With consideration the importance of market development for international auto makers, the Middle-East market is evaluated and Iran as a case study is looked over in terms of its potential automobile market and developing opportunities in Iranian car industry to become a manufacturing partner for international players. Through out a review of Iranian economy and the position of auto sector in Iran economy, the difficulties of growth and development, the role of government- as the regulator- are discussed briefly and the effect of international auto makers -in the past and future- is analyzed. On this basis, we point out the main troubles of the current auto industrys structure and the government dilemma to set its policies. At the end we suggest a reform in the structure and strategy of both assemblers and suppliers to ent er to the international markets. Keywords: Operation strategy; Iran auto industry; Globalization, Regionalization, Industry study Introduction Irans economic performance has begun to improve slowly after a decade of recession which was caused by the long and costly war with Iraq and fluctuations in oil prices. In the decade ending in 1998, GDPs growth per capitals started to rise, although the average was only 3 percent per year. (Economic reports, the World Bank Group) The automotive industry, as one of Irans most promising industries, was the countrys fastest growing industry with the average annual growth of 27.2% between 1995 and 2000 which was 5.5 times of the country average industrial growth. (Economic Focus, Iran Daily News). The domestic vehicle production is growing quickly but it is highly protected, and only in highly exceptional circumstances can Iranians import cars from abroad. Locally produced cars have a reputation for poor quality and have contributed to the dangerously high pollution levels. Also, Iranian firms were not able to satisfy the domestic market in terms of quantity. Demand for automobiles, particularly passenger vehicles, far exceeds the supply. In fact, more than 450,000 people pre-purchase automobiles every year and wait approximately two years to receive them. As a result the government, which wants to raise unit production and improve domestic industry in line with industrialization program, hopes to stimulate competition as part of the effect to make the economy less dependent on oil. In order to follow the market reform plans and provide better circumstances for the countrys main industries such as petrochemical industry, textile and etc, President Khatami (since August 1997- 2005) in 1999, announced an ambitious program to privatize several major industries which included auto industry as a part of total restructuring of Iranian economy. Currently 13 public and privately owned auto maker exist in Iran. The largest vehicle manufacturing company is Iran Khodro with an average share of 60.90% percent of domestic vehicle production, as the main government-controlled carmaker and Saipa is the second one with 32.70%. Subsequent to the development program, automakers have been encouraged to review the way in which their strategies will be developed in the future and to extend a range of strategy options that might enhance their position. Consequently, most Iranian auto makers have been encouraged to join ventures or any other strategic alliances with foreign auto manufacturers to meet the increasing demand (www.ikco.com). On the other hand, in looking at the automobile market generally, during the past few years, it might be observed that after a period of growth from 1997 to 2000 -resulting from the exceptional boom in US economy and the upturn in Europe-but the automobile market especially in North America and Europe has entered a consolidation phase because of overcapacity. The market is mature in developed countries such as those of Western European countries and US market where nearly 90% of sales of new vehicles are now accounted by replacement purchases. Also, in Far East-Japan and South Korea-, overcapacity is a highly sensitive problem (REINAUD, 2001), whereas in Middle-East region, vehicle out put is 6% of total global output in comparison with 29% in Europe and 30.2% in US (carmakers Annual report,*DRI). Thus, some auto manufacturers might be looking for new methods to penetrate the auto market in Middle-East in order to gain more market share over their competitors. If these companies do become partners, Iran will be an option to emerge as a major regional car manufacturer, serving the Middle East beside Other countries in the region, particularly Egypt and Turkey which have substantial car assembly arrangements. The following companies have signed cooperative agreements and their products are either already on the market or are to be introduced in the near future: Frances Peugeot with Iran Khodro. Koreas Kia Motors with Saipa. Frances Citroen with Saipa. Korean Daewoo and Kerman Motors. Optimus of the UK with Renus. Proton of Malaysia with Zagros According to the French automaker Peugeot, Iran has one car for every 21 people. Turkey has one for every 12, while Western European countries and Japan have nearly one car for every 2 people (www.peugeot.com). That indicates market growth potential, and the reason that foreign car manufacturer might be interested in the Iranian auto market. In this research the current auto industry situation in Iran will be analyzed and it will be evaluated in relation to its future strategy consequent upon growth in terms of output quality and ability to serve the domestic market, but also to play a major rule in region and become a truly international car manufacturer and exporter in Middle-East. To achieve a rich understanding of the current situation and examine the environmental position to meet the research objectives, other developing countries auto industry examples like China, India and Turkey will be investigated and analyzed as examples, while the regional circumstances, business environment and other specific characters of Irans economy e.g. the role of government , economic condition and Irans regulations will be considered to find out the most appropriate strategy for Iran car industry. The research question for the chosen topic is What would be the most effective strategy for Iranian car industry to become a major player in the Middle-East market? From this research question, the following objectives would be appropriate to evaluate: To evaluate existing methods of development strategy in the Iranian auto industry, To identify the best possible methods of development strategy for domestic and foreign companies, To recommend how such a strategy can be implemented. The background of the research is set with a brief discussion on the changes have happened in the world of auto industry, the consequent of globalization, the dynamic and diversity of demand in auto market and the auto makers difficulties to respond to new market characteristics while maintain the ability to make profit. Our goal in this paper is to propose an efficient strategy to . The paper has the following structure. Section 2 gives the brief literature review. Section 3 analyses the competitors in automobile Middle East market. Section 4 introduces the Iranian auto industry case. Section 5 presents the growth and development problems in Iranian auto industry. Finally, section 6 is devoted to conclusions and future works. The remainder of this paper is organised as follows. Section 2 summarises the development of Iranian production and exports in the car industry compared to other major exporters in the world. It also explains why Iranian export growth has remained much below production growth. Section 3 develops the empirical export model and describes the variables and data. Then, the model is estimated in Section 4. Estimation results are analysed and a sensitivity analysis is proposed. Section 5 estimates the Iranian export potential with regard to the main foreign markets, while Section 6 concludes. Literature review History of globalization Humans have coined the word Globalization to describe widely traded activities that take place across the continents which are aided immensely by diminishing international trading regulations negotiated through the World Trade Organisation. Globalization is a combination of many -manufacturing, trade in services, supply chain management activities which have been affected positively by a fast technological development in few last decades. As Friedman (1999) argues, what is new today is the degree and intensity with which the word is being tied together in to a signal globalized market place and village. What is also new is the sheer number of people and countries able to partake of today globalized economy and information network, and to be affected by them this new era of globalization is turbocharged. As it can be observed, that this noticeable international integration is not just in economics, but in politics and cultures are as well. However, it needs to be recognised that the speed of these changes and growth of integration is different across the world. In some countries and regions the trend of globalization is rapidly increasing while in other parts the pace is much slower and globalisation is not welcomed at all. Nevertheless, regardless of the effects of globalisation no country can afford to ignore its impact on their political and economical circumstances. Likewise, the rate of change is different in various industries as is the strategic response of different business sectors to take advantages of exploiting new business opportunities. Although the merchandise trade, capital investment and labour migration started from 1850-1914, and the economy was more open than it is today in terms of the existing tariffs and trade barriers, but it was not globalized. Just the year following the Second World War and through reconstruction of war, the world has started to establish institutions to open up trades and ensure currency stability such as GATT and IMF, which caused massive increase in the economic growth level. According to Dicken (2003), world trade increased at an average annual rate of 6.7 per cent between 1948 and 1953. Between 1958 and 1963 the rate rose to 7.4 per cent and between 1963 and 1968 it accelerated further to 8.6 per cent. So people experienced a boom period up to 1970s when the first oil crisis has occurred. The United States, which suffered less during the Second World War, increased its foreign investment and after a while the US companies started to move into Western European countries and create interdependencies across world markets. Europe and Japan which mainly focused on rebuilding their economies after the war joined in this and also expanded their positions in the market place and on the economic map after the mid-1980s. (Hill, 2005) Also, because of the necessity of promoting global interdependencies, the United Nations was established to maintain world peace and security and so help the spread of industrialisation and world trade. The main drivers of globalization Apart from the history of globalization there were several main drive points that enhanced the process of globalisation. From the Johnson and Turners (2003) point of view one of the main globalization drivers was the changing economic paradigm. The new approach for managing economy was based on limitation the government role and neo-liberalism. Limiting the role of government provides the situations for businesses to progress and boom. As the Hill (2005) says, major changes occur as new economic and political institutions develop, with movement from traditional, non competitive institutions to competition-based capitalistic economies and democratic institution. So the market was relied on to force the pace of competition. Little by little the liberal economy became an external economic policy and the General Agreement of Tariffs and Trades (GATT) set up to support this philosophy. As a result of GATT and afterwards its successor organization- WTO-, there was a great reduction in tari ffs barriers and non-tariffs barriers for participating countries which help them established and spread their liberal economic policy. The second globalization driver is the spread of international governance and regulation. More international rules and policies developed for business environment, especially in regional level aimed at reducing the barriers in economic market among GATT contracting and WTO members. Also spreading e-commerce as a technological consequent has brought new issues in terms of traditional governance structure. Therefore, by passing the time and more international integration, the trade and market regulation were less under the national states control. According to Johnson and Turners (2003) argument finance and capital spread is another driver of globalization. Necessity of financial and capital movement following the market deregulation and economic liberalization has supported by national rules and has facilitated by technological development and ease the financial transactions. All might agree that the technological development, mainly in information technology and communication sector, has played an important role in globalization. However none of them is the cause of globalization, Dicken (2003) argued, without these technologies the current complex global economy system could not exist. Shrinking time and space by innovated technologies was a great opportunity to reorganization and redefinition the commercial and economical structure. Most of industrial sectors are affected by innovations and changes in technologies especially in manufacturing system with a high influence on value chain. Transportation technology has changed dramatically from 1840 to 1960 which was a development period from steam locomotives to high speed aircraft. Therefore, new transportation systems and their wide usage with cheaper prices have brought global shrinkage. Also in communication and its convergence with computer technology development has facilitated more effective networ ks within and between enterprises. All of these technological conveniences provide links across borders and spread globalization in economic term. Social and cultural convergence might be seen as a driver for globalization. The effect of mass media and usage of internet make the consumer preference more common in global market. As Johnson and Turner (2003) mentioned, similar taste of consumer in different parts of the market creates the opportunity to promote global product. So we can claim that the cultural and social similarities make the conditions available for globalization. Also transferring new technologies has brought about more products in greater varieties at lower costs and prices. Consequently standards of living and peoples expectations rise as well. Mode of entry and expansion methods In simple terms, globalization is an opportunity for companies to expand their market, their value chain and their business across borders. But the point is how effective can companies use these opportunities to make more profit and enjoy sustainable growth. What factors should they consider to make decision to choose an investment option to carry on their development strategy? Global supply chain and its dimensions Apart from different modes of entry available for firms to get advantages from globalization and to move across borders to expand their market, other advantages may be gained through developing global supply chains. The production of any good or service can be conceived as a production chain that is, as a transactionally linked sequence of functions in which each stage adds value to the process of production of goods and services. (Dicken, 2003) The firms try to differentiate their value chain in order to add more competences by using the advantages of each production chain requirement in different part of the world. However, build a global value chain might make it fragmented while the control and management of a global network is more difficult. From Dickens point of view there are three important dimensions in production networks: First is governance which means how they are coordinated and regulated. In the case which varying combinations and interrelationships of different kind of companies and firms might perform in a production network, As Dicken says, the market is the main organizer of external transactions, in contrast with the case which the entire network operated with a single firm and internal organizational structure governs transactions. (Dicken, 2003) The second important dimension in production network is spatiality and how they are conFigured geographically. By increasing the emergence of global production network, network organizing is changing from geographically concentrated to geographically dispersed. The third issue is territorial embeddedness the extent to which they are connected in to particular bounded political, institutional and social setting. (Dicken, 2003) information technology and other new technologies have made space and distances meaningless. Most types of capitals are mobile and all of them can easily move from one place to another. However transportation and communication technology has developed as well, capital does moves within spaceless world. Place is still an important issue, as firms are highly affected by the cultural, socio-political and institutional context of the territorial they are embedded. Therefore multinational firms try to take advantages of differences within regulations and socials in various places while, bringing different state with different regimes in count within a production network makes the situation more complex to control and to take benefits from. Since 1999 and strongly growth of globalization, the same as other important and effective phenomena, globalization has a positive view wave that strongly recommend it and a negative wave against it which moves from developing country to developed countries during these years. Arguments about globalization success or failures do not have any satisfactory result, while globalization can be observe and discussed to understand both negative and positive sides of it. Growth of regionalism Although the speed of globalization and integration in the world market has increased during past decades under the General Agreement on Tariff and Trade (GATT) and more recently by World Trade Organization (WTO), the regional agreement and the debate on the desirability of regionalism has grown as well. By the beginning of twentieth century most of the counties were part of a regional integration. However one might argue that the reason of regional integration is more political than economic explanation, it can not be ignored any more as almost 50 per cent of all world trade is within regional trade agreement. As a result of that, there is fear within WTO and other international institutions that regionalism takes the place of globalization and make a stumbling block toward further global trade integration. (Lung Van Tulder, 2004) Nevertheless there are different forms of regional integration and each of them affects global market more or less while the time of their integration pr ocess is various. The dynamics of automobile market Although some changes had happened in the composition and geography of automobile demand, the concentration of automobile industry in three major global regions face auto companies in these regions with the overcapacity problem. The highly market-oriented of automobile production caused its development be based on affluent consumer markets to achieve the economy of scale. But during the years, the automobile consumer markets in three developed region has developed as well. As Dicken argued in the Global Shift (2003), the changing demand for Automobiles has three major characteristics: It is highly cyclical. There are long term (secular) changes in demand. There are signs of increasing market segmentation and fragmentation. ( Dicken, 2003) The competitors Despite the fact that NAFTA, EU and Japan are the main developed region in both production and trade in auto industry sector, other countries have started restructuring this sector in line with their economic reform. The obvious example might be China and India which both are gaining a sustainable growth in the last decade. Also Turkey has emerged as a new automobile producer in line with other industrial changes aim to become qualified to join European Union. Turkish auto industry Turkey auto industry has been developing due to the well strategic planning applied by the Turkey government by the way in which they opened their country to the global world. They have started their industry as a montage (CKD or SKD) in 1960 and have turned it to manufacturing part after a few years in 1966 trough licensing agreement and dealer-assembler with American and European firms. Gradually the government attempted to adapt an export-oriented strategy; consequently it started to liberalize the importation of cars gradually and reducing the tariffs. Meanwhile it provided some financial supports for upgrading themselves to international acceptable condition. But the main change which caused a revolution in Turkey car industry was the customs unionization agreement in 1995 with European Union which followed by a new restructuring in their auto industry. To harmonization the administrative and regulatory structure of the industry, Turkish government has established an accreditation council to prepare the documents for new adaptation the issues and procedures of exporting in line with European countries. However the Turkey supposed to complete the adaptation and remove all tariffs by 2001, they have not completed it yet and it seems the Turkeys auto industry has not well prepared for full liberalization. Although adaptation a new regime from Turkey government which obligate importing vehicle companies to prepare service facility and aftermarket parts for customers within a country was a great opportunity for domestic firms to become involved with providing spare parts and services. Even though it was not a stable macro environment after 1997-1998 Russian and Asian crisis and again December 2000 crisis, the restructuring program caused some investment in car companies in Turkey in order to support economy of scale and encourage them to developed more update types of automobiles. Turkish manufacturers have operated in two car segment; low medium and medium models and the produced cars have already been phased out in their country of origin, added that these segments account for 90 per cent of the Turkish market. (Duruiz, 2004) Governmental financial supports and investment on auto sectors attracted many foreign investors from 1995 onward, especially with aim to develop new generation cars and modernization the industry. Most of foreign car firms have gained relatively high share of the auto industry after liberalization to use the resources in Turkey and export to European countries through Turkey. Table 1 shows the main auto manufactures in Turkey and their share. As the effect of custom utilization agreement, the automotive sector had the 5th place in Turkey exporting in 2000, but the main effect has happened in component sector and it has increased relatively higher then auto sector export. It was also easier for component producer to upgrade their standard of their firms to get a competitive position in EU base on their lower labour wages. (Duruiz, 2004) Nevertheless Turkey has accepted liberalization in their trade but as they have not done the full integration, their case has become special. Mostly the Turkeys future economy highly depends on the European Union decision to accept it or not as a member of European Union which lead to change their economic structure with the support from the IMF and European Union. Indian auto industry Emerging of India in the world economy has been started by implementing liberalization and opened up most of the economic sectors to the global world in 1992. Looking historically at Indian car industry, it can be divided in four phase from the view point of Kim (2004). The starting point was in 1920s with assembly which was established by foreign companies. (General motor and Ford) It took two decades up to 1952 that Indian build up their domestic production firm. The governmental policy in auto sector is known as the main reason of no progress in productivity and technology in this sector for long period. (Kim, 2004) The third phase was started, after three decades, by making a join venture of Maruti Udyog -became nationalized in 1980- with the Suzuki motor company. According to this agreement a revolution had happened in Indian car industry. Increase the volume and standard was not just in auto makers but the change was occurred in the components industry as well. (Venkataramani, 1990) The main and last phase was started by Indian economic reform after 1992 under the guidance of the IMF and World Bank. As it was anticipated, deregulation of auto industry in 1993 and the expectation of market growth in India according to the population have attracted international auto makers to invest in India. According to the foreign existence it was a dramatically fell of domestic firms share in India. Investment of foreign car makers, which were mainly in the form of joint venture with domestic firms, caused there-restructuring in the Indians motor industry. Apart from promotion of new models with more stylish design, significant changes have happened in auto financing as well. Also numbers of component manufacturers invested in local firms to supply their assemblers. So Indian witnessed a fundamental change in the technology, infrastructure and managerial systems. (Kim, 2004) Despite of all expectations and anticipations about the fast economical growth after regulations in India and a positive view of auto makers about Indian market because of the sizable population of middle-class, the estimates about rising in demand did not turn to reality. Apart from the problems which multinationals generally face in new emerging countries such as undeveloped supplier base, weak infrastructure and undeveloped regulations (Kim, 2001), Indian environment seems more complicated for them. Although the population was far enough to support ten auto makers, the companies face with overcapacity. The lack of demand in both domestic and regional market has become the major problem for multinationals auto makers in India. In terms of export from India to the neighbour countries also, the multinational car makers have not achieved any remarkable result. However the main reason might be the economic situation and poverty of South Asian countries which limit the demand for passenger car, we should not ignore the political and economical relation of India with its neighbour. Despite the hopes after the South Asian Association for Region Cooperation (SAARC) in 1985 and the South Asian Preferential Trading Agreement (SAPTA) in 1995, there was no significant growth observed in the South Asian trade relationship. Although the auto industry in India has not succeeded as it was anticipated, the auto component industry has occurred high progress in quality, technology and international standards. Now, in collaborate with foreign companies, they have become competitive in international markets and auto makers in India use their Indian suppliers to supply their other operation plant around the world. Moreover, Indian government regulations disable multinational to import completely build automobiles to India. However the Indian government did not define any limitation for on foreign ownership, instead 123 per cent tariff rates on import cars were forced multinationals to set up their assembly plant fully within India. And a high tariff on finished components also was another issue that multinationals prefer to find their supplier within domestic firms. (Kim, 2004) Despite of all mentioned problem in India, multinational car makers seems still have a positive view about the Indian market. The potential existing market is there, but the matter is that when it will become visible. Chinese auto industry Following the economical reform in China, the Chinese policy makers focused on auto industry as a symbolic sector which shows the industrial development within a country. The need for technology and knowledge caused them looking for foreign partner to provide the required technology by setting up assembly plant which also generate and improve numbers of domestic firms as the suppliers to support the main assembly plants. So, in the mid-1980 three main cities of China (Beijing, Guangzhou and Shanghai) established a joint-venture with foreign auto makers supported by central and local government. (Thun, 2004) Each local government aimed to improve the local supplier network by its JV, but the assembly plants were looking for the better quality and lower price. Therefore in contrast with the local government and despite of geographical advantages of supplying from local firms, assemblers were dependence on outside supplier and most of them imported 100 per cent of the components from outside unless they were forced by Chinese government to increase their required components from domestic firms. But even after the time assemblers shifted from outside supplier to domestic firms, the local government aim to improve their local network were failed as the JV sourced their parts from other regions. Therefore, as of 2003, just Shanghai could relay on their local auto sector and even though it did not meet the international standards, it became a dominant firm in Chinese auto market. (Thun, 2004) The Shanghai success was the result of well support and strategic plans of local government and Shanghai Automobile industry corporation (SAIC). In 1984, when the Shanghai established a joint-venture with Volkswagen (VW), non of local firms were able to supply the required component for the assembling plant and after two years their share increased by just 2.7 per cent. (Li, 1997) No significant achievement after two years caused Shanghai municipal government began to re-evaluate the problems within the sector and the capacity of individual firms to solve these problems. (Thun, 2004) Consequent of problem solving process, they discovered two necessity preconditions to facilitate improvement in domestic firms. The first one was a reorganization of the municipal bureaucracy responsible for auto sector oversight. They have set up an Automobile Industry Leading Small Group in order to control the local actors. (Li, 1997) The second precondition was the capital accumulation and investment. To solve this problem the local government defined a localization tax and set up the localization office which was responsible to carry out a straightforward import-substitution policy for the imports in auto sector even from other Chinese regions. Also, the localization office checked out the list of imported components and their domestic firms which are capable of produce them successfully, then it provided a suitable investment capital as well as managing the firms relationship with the main assembler plant. (Thun, 2004) Apart from the local government programs, SAIC had its own way to support the Shanghai auto sector, however in some areas their activities overlappe