Illustration Essay Example | Topics and Well Written Essays - 500 words

Illustration - Essay Example ctive equipment consists of a range of clothing and equipment, which is worn by workers, students, contractors and visitors to protect their bodies from workplace hazards. Personal protective equipment contains equipment for eyes, head, ears, breathing system, body, hands and arms and feet and legs and should be used for the protection of an individual against any hazardous situation. People working in a workplace make use of personal protective equipment to ensure their safety. Firemen use PPE, manufacturing laborers use PPE, students and scientists working at laboratories use PPE, people working at construction sites use PPE, doctors use PPE and many others use PPE for their safety from any risky situations. For different kinds of workers working at different places, different kind of safety equipment and clothing is used. Firemen wear costumes that secure them from extensive heats and burns, they also use goggles for the safety of their eyes so that their eyes don’t get injured because of the situations they are put in. There are also special helmets for the firemen that secure their heads from any injurious activity happening around them. The students working in laboratories with chemicals should put on the lab coats and gloves in order to work securely. There can be many chances of occurrence of some dangerous situation. For that time, they should be ready and should use the PPE designed for that purpose. With proper precautionary measures by using PPE, many hazards can be controlled. While entering a workplace, the workers should wear the PPE instructed for them in order to take suitable precautionary measures for any risky situation. The protective equipment is designed for the safety of its users and when it is used, it proves to be efficient. Generally, people consider protective equipment as a burden and try to avoid it but they should keep in mind that it is not a burden and should be used for their own safety. Some people also use half of the

Fair Value Accounting Essay Example for Free

Fair Value Accounting Essay This paper attempts to answer the questions: Is Fair Value Fair? In so answering the question there is a need to determine whether the use of fair value accurately portray the value underlying financial and economic transactions; to determine whether there is basis to have one universal standard of valuing the assets and obligations of all firms; to find out whether accounting standards would allow for both historical and fair value and still produce meaningful information for decision making; and establish one is more important between relevancy and reliability and whether one’s the importance each depend upon the financial user. 2. Analysis and Discussion 2. 1 What is meant by being fair? To be fair means giving what is due to a person. If applied to an asset purchased or liability assumed in business, fair value would simply mean that said asset or liability is neither overpriced nor underpriced as a matter of perception. Under the law of economics, fair value would refer to that market price which is approximated by the equilibrium price of a thing or good, which is the value of the something from a seller that is not forced to sell or from a buyer that is not forced to buy. In a business transaction there are always are investors, creditors, and other persons who must get their due in transactions that they will enter into. An investor will know what is fair if the person or entity will earn just enough return above cost of capital and in exchange for the risk that such person or entity is taking. The same must be true with a creditor that the person must also get paid on time on his credit plus a sufficient return for the risk in form of interest and penalties. In terms of viewing the corporation as a business entity, what is fair to it is what will allow it to have a sufficient return for the risk that it is taking above its cost of doing business or cost of capital. To arrive at what is fair the investors and creditors who are called users of financial information, these users must know the true or accurate information about of the company so that they will know whether they are going to earn or lose and make the necessary decision whether they will sell, buy or hold to their investments. In other words, to have the chance of being treated fairly from a transaction, one must have the opportunity to have the true or accurate value of asset or liability being dealt with in a business transaction. The opportunity is thus normally supplied by financial reports prepared by companies and which are made public. It is in these financial reports where values whether fair or historical are reported in accordance with prescribed accounting standards that may come from the Financial Accounting Standards Board (FASB) in the case of US companies and IFRS in case of companies operating in the European Union and in other countries which have adopted the IAS or IFRS. Fair value accounting was made pursuant to FAS 157 as issued by US FASB for companies to reflect the accounting information on how much are the real values of assets, liabilities and equity in the balance sheet as contrasted with presenting the information using the historical cost accounting. The purpose of FAS 157 then was built on a framework whereby financial users are given the chance about the true state or fair value of assets, liabilities and equity for decision making under the impression that things will be fair to users of financial information about a company. Incidentally, FAS 157 defines fair value almost very closely to what was discussed and analyzed so far. It is the price that would be received â€Å"to sell an asset or paid to transfer a liability in an orderly transaction between market participants in a measurement date† (Sortur, 2007). 2. 2 Does the use of fair value accurately portray the value underlying financial and economic transactions? To the extent that fair value concept is discussed so far, there is the presumed proposition that the use of fair value will accurately portray the value underlying the financial economic transaction. As to whether this is true, this subsection will have to evaluate the subsequent result on what happened upon the application of 157. In the case of banks, there are those who have to write down the value of assets because of their perception that values have declined due to existing market conditions (Chasan, 2008: Rees-Mogg, 2007). The economic effects however were not favorable to affected interested parties since this action of the banks has produced a backlash. Investors of these banks have lost values of their investments. As a result, the banks have become more risky and depositors lost their trust too in the banking system. If indeed the banks were just reflecting the true values of the assets, how come the reaction of these banks as matter of complying with the requirements of the FAS I57 was not good for many of the affected parties? Would it proper then to deduce that the application of FAS 157 is not fair or that FAS 157 fair value is not fair? If the answers to both of these questions are in the affirmative, then this would have the connotation that what is unfavorable to others is not fair. But how if the values being reflected in the write down are indeed the true values, would the fact that users of financially information get adversely affected make the FAS 157 not fair any more? It would seem that it would be not correct to say fair value accounting or the use of fair value will not be fair if users get affected or have the perception of not getting what they feel or perceive to deserve even if the information is indeed accurate. Otherwise, fair value accounting would be equated with sure profits which could never be within the contemplation of the use of information in decision making. Being fair therefore must first and foremost be characterized to represent the true and accurate information and consequence would be justified by such quality of information. To answer squarely whether the use of fair value accurately portray the value underlying financial and economic transactions, this paper would have to answer in the affirmative. Based on foregoing analysis the FAS 157 aims to reflect the values what would approximate the market price since it is â€Å"the price to sell an asset or paid to transfer a liability in an orderly transaction between market participants in a measurement date† (Sortur, 2007). FAS 157 fair value is therefore the result of the business transaction using the exit price (Sortur, 2007) and is determined by the buyers and sellers in the market. It is therefore not the job of FAS 157 to create what is unfair but would have only to reflect the true values of assets or liabilities that would have to be reported. Therefore, fair value accounting or the use of fair value must be upheld to be fair if it would reflect or would cause the reflection of what are true values. Indeed, it must be the capital markets or the buyers and sellers who will determine the market value or fair value and not the accounting standard. The only role of the accounting standard is to cause its reflection in financial reports of companies because of the requirement to make public their financial statement to investors which would reflect the fair values of assets and liabilities. There is argument that the intention of 157 Accounting rule FAS 157 is good but one cannot prevent people from taking advantage of the new rule to what could further their interest. It is further argued that in whatever one would like to look at it, the generic thing about business is still the desire for profit by which people are motivated with their personal interest to get more wealth (Brigham and Houston, 2002). In response, the use of fair value does consent to allowing people to be taken advantage but cannot prevent those who would want to and those who do not know how to process information for decision making. If the banks which wrote down asset values are indeed taking advantage of the use of fair value accounting, it is still the transactions between the previous buyer or seller that have caused the reaction which started it and the role of accounting standard is just to reflect them (Meigs and Meigs, 1995). If the requirement to report what is happening is unfair, what will then be fair? Chasan (2008) narrated about some investors expressing their doubts on the effectiveness or fairness of fair value accounting method used especially in the context of evaporating markets caused by the financial crisis. The author however admitted that the use of FAS 157 as an accounting standard was made to improve transparency to investors. Citing big write-downs being made big companies like Citigroup and Merrill Lynch Co Inc. which has made multibillion-dollar reductions on subprime-related asset-backed securities and other assets described as hard-to-price assets, the issue of whether fair value is still fair has become a controversial question (Chasan, 2008). The argument being asserted is about the volatility of being caused the use of fair value. Rephrased simply, can fair value justify the volatility? Volatility is a term used in business which connotes changes in market prices and which causes risks to investors (Droms, 1990; Helfert, 1994). It is feared that with the desire to create transparency, increased risk from the use of fair value is coming out as a result. To resolve the issue, the previous answer to the question on whether the use of fair value could justify big losses if what is being reflected or reported about company values are still true, would in effect cover the issue of volatility being blamed on the use of fair value. Hence, this paper believes, that fair value which stands for what is true must be upheld as argued earlier. There are concerns that because of volatility caused by the use of fair value accounting, the money makers would just be benefiting hedge funds since they are those to profit from volatility (Chasan 2008). In answer, it could argued that such is the nature of fair value accounting, to allow the market forces to move freely without people being compelled to enter into buying and selling transactions. If there are losers, there are also losers and they are part of the process. It is also argued that those who are complaining about the effects of credits being blamed on the use of fair value accounting are investors or groups of them, who may have been instrumental in pushing for the shift to fair value accounting. One of these groups is called the CFA Centre for Financial Market Integrity, with analysts and portfolio managers composing the group (Chasan 2008). The group and other groups 2007 had their aggressive lobbying to use fair value more in financials. These investor groups could not be only be winners in a market transaction, they could also be losers sometimes; otherwise the market is not operating efficiently. 2. 3 Should there be one universal standard of valuing the assets and obligations of all firms? The issue of whether there should be universal standard for valuing the assets and obligation may be very ideal since when one now talks of universal fair value as a universal standard for example, one will have to consider macroeconomic conditions of the different companies in the world. Since not all nations are similarly situated, at least economically, there is the strong probability that universal value could not be implemented. The question is being propounded to help in setting what is the fair value in accounting like the universality of human rights. However its impracticality will prevent the attainment of the objective. Accounting values are not human rights. Another thing is the difficulty of measuring the risks in business in different countries which are factors in determining the cost of capital of doing business. The difference in risks depends upon many factors including macroeconomic conditions which are affected by political developments. In answer therefore to the question, it will have to plainly say that the vision of universal standard is laudatory and this could be a part of an approximate desire to the internationalization of accounting in many part of the world. There is the plan to harmonize all accounting standards in the world. The FAS 157 definition was actually made part of the plan of IASB which makes IFRS, to adopt the former for the use of those using the IAS or IFRS (Sortur, 2007). In other words, efforts are made to approximate universality of standard in valuing the assets and obligations of all firms but its realization could only possibly become when the time will come for a universal government. 2. 4 Can accounting standards allow for both historical and fair value and still produce meaningful information for decision making? Accounting standards are in effect guides to users to help users make informed decisions in business. Having both historical and fair value must strike the balance of getting to the extreme of having one and disregarding the other. In other words, one needs to know what is historical for comparison to what is fair value or market value to make an informed judgment. Accounting standards must then work for the attainment for the creation of balance between the two values. As to whether the accounting standards can allow for both historical and fair value and still produce meaningful information for decision making, is answered again in the affirmative. This can be tackled better by breaking the given statement into two propositions first and then combine them latter. The first proposition would be declared settled in the fact the accounting standards can allow both historical and fair value together. The second proposition is that the use of both will still produce meaningful information. This first proposition is accomplished since the practice have been done for a long time already since in the case of valuing of inventories, accounting standards allow the valuing them of lower of cost or market under the IAS 2. (Deloitte Touche Tohmatsu, 2008). The fact that inventories can be valued at cost means the historical cost is maintained but requirement of presenting the fair value of inventory if it has gone down in the market is also a part of the standard which in effect allows the working of fair value concept. There are other IAS concepts which allowed fair value accounting and historical value accounting. Thus this section is not much of a problem. The second proposition appears to also to have been fulfilled by the use of IAS as illustrated. More meaningful information is in fact reflected by allowing a combination of fair value and historical cost in the valuation of assets and liabilities of companies. By combining the validation done is confirming the application of two proposition, it could be sufficient to strongly answer the question in the affirmative. 5. Relevancy and Reliability: Is one more important than the other, depending upon the financial user? Both relevancy and reliability are requirements for qualitative characteristics of accounting information. Forcing one to be is more important than the other would be asking the wrong question if the objective is only to determine whether preparing financial information using their fair values is fair. In fact to say that an information must be relevant carries the presupposition that the information must also be reliable. This is on premise that reliability connotes objectivity of information which is very much akin to being truth or fair. Information is relevant or has is relevancy character if it influences one’s decision about a particular issue. On the other hand, reliability deals with the objectivity or accuracy of the information. How could a decision maker consider information as relevant when there is no reliability of the information? On the other hand having reliable information would be of no value if the same is not needed in the decision to be made. The two characteristics must therefore go together. 3. Conclusion The issue of whether fair value accounting or the use of fair in accounting for company assets and liabilities is fair must be answered in the affirmative. What is fair is not what has caused much damaged to a person or entity if such damage was a result of failure to follow the basic rules of making investment. The effect of fair value should not be used to allow one to just justify greed while disregarding the rights of others. A loser under a fair value accounting is comparable to a person who is taking too much risk thus the return could also be high but could be low because of the working of the market. As long as buyers and sellers are not being compelled to complete their transaction, fair value is still fair. Fair value accounting will lead to the truth but its value will also depend on the users of information after they have done their roles in the market. The user will still need to make a comparison with what is historical and what is the current fair value as caused by economic conditions. Present accounting standards have caused the reporting of both kind of information but users must also be intelligent in doing their part. Fair value as a concept in accounting standard was just made to correct the apparent failure of purely historical cost accounting. If fair value accounting is fair, it does not imply that the standard must go back to historical accounting but historical information must still be reported and allow the user to make a difference in how to process the information. Since fair value and historical cost could co-exist together, the same must be the better option as it will provide a balance between historical and fair value accounting. References: Brigham and Houston, Introduction to Financial Management, Thomson-South Western, USA, 2002 Chasan, Emily (2008), Is fair value accounting really fair? {www document} URL, http://www. reuters. com/article/reutersEdge/idUSN1546484120080226, Accessed October 20, 2008 Deloitte Touche Tohmatsu (2008), Summary of IFRS for IAS 2, {www document} URL http://www. iasplus. com/standard/ias02. htm , Accessed October 21, 2008. Droms (1990) Finance and Accounting for Non Financial Managers, Addison-Wesley Publishing Company, England Helfert, Erich (1994), Techniques for Financial Analysis, IRWIN, Sydney, Australia Meigs and Meigs, 1995, Financial Accounting, McGraw-Hill, Inc, London, UK Rees-Mogg (2007), Why FAS 157 strikes dread into bankers, {www document} URL http://www. timesonline. co. uk/tol/comment/columnists/william_rees_mogg/article2852547. ece, Accessed October 21, 2008. Sortur (2007) Fair Value Measurement, The Chartered Accountant {www document} URL, http://icai. org/resource_file/96471564-1574. pdf, Accessed October 21, 2008. ]

Background market and strategies of the nissin group business essay

Background market and strategies of the nissin group business essay Through the evaluation of the background, market situation and business strategies of Nissin Group, this paper provides the explanation on why Nissin instant noodles have achieved a fast development performance in the instant noodles business in Hong Kong The study of Five Forces and PESTEL analyses will lead to the understanding on how the macro-environment and micro-environment affect Nissin performance its business direction and strategy. A further study of the results from the perspective of an internal competence analysis to the results from the Five Forces and PESTEL will identify the strengths, weaknesses, opportunities and threats of Nissin. These findings will then tell Nissin of what needs to be minimized, eliminated, and to reduce or neutralize risks. All these findings will add up the reasons to justify how Nissin sustains its market leader position in Hong Kong. Suggestions on improvement and implementation of corporate strategy will also be elaborated. 1o. Introduction Intrepid Japanese entrepreneur named Momofoku Ando established Nissin Foods around the middle of the 20th century with the name Chukosasa Co., Ltd. Foreseeing that Japanese society was being economically and socially reengineered toward production speed and efficiency, he also sought to reengineer the Japanese diet in response. His answer to the requisite of speed exerted and demanded of the modern Japanese was simple the instant noodle. The invention revolutionized the food industry not only in Japan but also throughout the world. Now Nissin Foods, produce not only instant ramen noodles but also fresh and pre-packaged frozen food, and meals-ready-to-eat including cereals and spaghetti. But noodles remained the primary product draw. Mr. Ando stayed ahead of the competitive pack with remarkable innovations. In 1963, he introduced into the market the ramen Yakisoba, which had a separate flavoring packet. A decade later, Momofoku Ando invented cup noodles and in 1984, Nissin Foods established in Hong Kong (Nissin Foods Holdings, 2010). What has been Nissins strategy to address the various forces acting upon the instant food industry? How valid and viable would this strategy still be in an age of high technology and rapid global integration? And now, lets start to know the direct key stakeholders in Hong Kong. Management of Nissin The Management receives strong support from Parent company who has made the sustainability much easier for a stronger market share. Staff of Nissin They are the executors of the business. Staff would be happy to work for Nissin if the business is stable and with continuous growth. Hong Kong consumers the market share is large amongst the younger generations and white collars as they accept new trendy food, especially from Japan. Food and Environmental Hygiene Department (FEHD) of Hong Kong Government the Government has to control the types of incoming food products for consumption, as a statutory body, FEHD will govern the quality of food items importing to Hong Kong. Hong Kong Consumer Council it regulates the selling of consumer goods to the public in a fair trade practice. By supports of academic references, there will be a careful analysis of macro-environment and micro-environment undertaken by using Five Forces and PESTAL, plus a review of the internal analysis by strategic capabilities. The outcomes from external and internal environment analyses will be combined in a SWOT analysis. From the results of this analysis conclusion on overall business strategy, some improvement or implementation can be drawn through the methods of Porters Generic Strategies, Ansoffs matrix and organic method. 2. Analysis of Nissin in the Instant Noodles Industry in Hong Kong The following analysis of Nissin is based on strategy development processes suggested in major strategic management literature. There will be a careful analysis of macro-environment and micro-environment undertaken by using Five Forces and PESTAL, plus a review of the internal analysis by strategic capabilities. The outcomes from external and internal environment analyses will be combined in a SWOT analysis. From the results of this analysis conclusion on overall business strategy, some improvement or implementation can be drawn. 2.1 External Analysis Industry Analysis/ Five Forces Analyzing the generic food industry from the perspective of Michael Porters five forces, namely, the threat of new entrants, competitive rivalry within the industry, the threat of substitutes, the bargaining power of customers, and the bargaining power of suppliers (Porter, 1985). Threat of new entrants Nissin Foods in Hong Kong does not perceive any new entrants or competitors in the industry. The market appears to be increasingly expansive and lucrative and this is expected to lure new participants. However, the predominance and well-entrenched positions of the current players had dampened the enthusiasm of those who intend to enter the industry from outside. Industrial competition would probably more ensue from within and intensified internal competition would take place in the form of innovations in the product itself as well as in promotional designs and packaging. The barriers to entry are quite formidable considering that customer loyalty to the existing players are quite strong and that these current players have already established linkages with local formal sources of capital and distribution outlets (Becker, et al., 1999). Competitive rivalry within the industry The instant noodle industry in Hong Kong is a highly intense rivalry among the current players, thus making the industry itself highly competitive. Innovations are frequent and the market now regards as its highly popular products, environmentally friendly cups and containers and food ready to eat from the moment the packages are opened. Advertisements fight for time both on mass telecommunications channels and over the Internet and companies also engage in intense competition in the sponsorship of events like games and competitions. The existing noodles companies also engage in the constant monitoring of the performance of their products on the market, outlaying huge sums of money for customer surveys, promotions, and advertisement as well as in technology and manufacturing innovations. Threat of substitutes Hong Kong consumers are increasingly health conscious, they demand fresher and higher nutritional food. As such, there is an increasing consumer preference for fruits, vegetables, poultry and low fat, low sugar and zero to low preservatives content products. No matter how much hard works Nissin has contributed to the improvement of noodles quality, the dried instant noodles are not considered as a real meal to the consumers in Hong Kong. Substitute products like those offered by Jollibee, McDonalds, KFC and fast food noodle houses are slowly but steadily flooding the market and as buyers become more tend to the Western style of business activities and private lifestyles, such substitutes become increasingly attractive than the traditional instant noodles. Bargaining power of customers (Buyers) It bears negatively on the prospects of Hong Kongs instant noodle industry as more and more people rising in terms of social status and economic position. The increasing purchasing power of the population exerts leverage on instant noodle companies who might see the loyalty of their customers being eroded by their increasing incomes. The substitute product firms such as the fast food chains are also known for their notoriously low operating costs and their relatively cheaper products. Cheaper products have a corresponding income effect on the consumer as they realize the greater power of their money vis-a-vis the substitute product. When combined, these factors lead to the rational consumer realigning his consumption possibilities curve to favor the substitute rather than the formerly patronized product. This situation currently faces the Hong Kong noodle industry. Bargaining power of suppliers Finally, and as a counterpoint to the pathetic prospects with regard to the increasing demand of substitute products in the instant food market and the increasing power of customers, the instant noodle industry is seen to still maintain its hold over the supplier sector. In this regard, the bargaining power of the suppliers for the instant noodle industry remains low as many of the independent supplying firms have either been vertically integrated into the existing companies or have been interlinked through long term supply contracts. The low rate of entry into the industry also act as a safety net that limits the power of suppliers to charge high prices for the firms inputs which basically include wheat, buckwheat, corn, sesame oil, and other organic inputs. The suppliers market remains huge and extensive allowing for easy substitutability whenever a supplier becomes a party to an unprofitable relationship. 2.2 External Analysis PESTEL The PESTEL analysis provides a comprehensive list of influences on the possible success or failure of particular strategies; it stands for political, economical, social, technological, environmental and legal. (Johnson, et al., 2008) Political Situation Hong Kongs political system follows the set-up envisioned by the Chinese government when the former British colony returned its sovereignty back to China in 1997. The Chinese government maintained the capitalist economy and so the situation remains favorable to continued and sustained business expansion. Hong Kongs administrative structure carefully and strictly enforces laws and regulations that regulate fair business competition. Corruption is at fairly low levels and government officials are careful to preserve the Chinese governments reputation of fair but strict governance according to the law (Goodstadt, 2010). Economic Situation With Hong Kongs position as one of Asias financial and trading centers firmly entrenched, the city is actually looking forward to another sustained economic growth by 2011 and beyond. Hong Kong remains a fast-paced hub of businesses among almost all the global cities and therefore social mobility is fluid, leading to a fast rising middle class with an increasing purchasing capacity. Demand for instant foods is therefore expected to increase and despite the existence of a fairly sized competition, notably the Toyo Suisan Kaisha, Ltd.; House Foods Corporation; the Nong Shim Company, Ltd.; the Tingyi Cayman Islands Holding Corporation; Asia Food and Properties, Ltd.; the Ottogi Corporation;the Myojo Foods Company, Ltd.; the Tokatsu Foods Company, Ltd.; and Bing-Grae Company Ltd, the market shares of these companies remain small. With the expected expansion of existing demand, will in effect scramble for larger and larger shares of this market. Social Situation Noodles remain a primary staple in the Chinese diet, it being one of the traditional foods associated with the culture. As the social structure modernizes and instantaneity becomes a part of the societys way of life, instant ramen noodles become the norm. Cultural adjustments in response to modernization have often been slow but the rapid acceptance on instant noodles ever since its introduction in the 1950s has been truly revolutionary, the product being responsive to the demands of both tradition and modernity. Technological Situation The information and communications technological infrastructure in Hong Kong has been always at the forefront of the adoption and utilization of new generations of such technology. Manufacturing equipment remains state of the art and Hong Kong laws and regulations are unrestrictive of the entry of more advanced technology. Hong Kong, moreover, is solidly linked to the global village through the Internet with firms recognizing the imperative of such linkages with the status of their Hong Kong firms as hubs for their global operations. Environmental Situation The government and the people of Hong Kong are concerned about the implications of manufacturing activities on the environment. Firms should answer the demands for corporate social responsibility in this aspect. For example, pollution and waste management are particularly important considerations. Since government has already put in place policies that address environmental concerns, environmental reporting is now the focus of governmental efforts. Different sectors are seeing the value of linking environmental responsibility and reporting (The Association of Chartered Certified Accountants, 2010). As environmental reporting becomes more widespread Hong Kong firms are also given the chance to keep with international trends. Legal Situation Hong Kong provides an extremely favorable legal environment to businesses, as the official rates of income taxation for both individuals and corporations are relatively low compared to other business areas. Corporate income taxes for example peak at 17.5% allowing business establishments higher outlays for investments and expansion providing them sufficient breathing space for increased profits and returns on their investments. These conditions serve as a major pull factor for regional and local investors including Nissin Food. Companies who also have CRS departments like Nissin could also avail of tax holidays of as high as 10% on their incomes (Hong Kong SAR, 1997). In addition, courts and magisterial agencies are highly competent and legal expertise are extremely trustworthy in a place that had developed an excellent reputation for judicial fairness and equitability from even from its years under British rule. 2.3 Internal Analysis Capabilities Nissin Food Co., Ltd. has always been extremely competent with sufficient financial capacities that should allow it to withstand fluctuations in consumer demand throughout the years. Its manufacturing plants and equipment remain modern and environmentally safe, complemented by subsidiaries that have safety research in food technology. Nissins technological expertise, directorial competence and workforce commitment remain at the highest levels and the Ando family has kept the familys trade secrets secure with the proper legal and propriety registrations and protection. Technological knowhow has often been a trademark of the company ever since it was established and kept with important business moves over the years. Quality control technology has been especially developed through the years with the company regularly testing and re-testing its products before they are put on the shelves and marketed overseas. Even packaging, storage, and transport mechanisms are strictly monitored and frequently adjusted to ensure quality standards of safety (Nissin Food Co. Ltd, 2010). Through these initiatives, Nissin Food has maintained a solid image as the primary instant food corporation carrying what they call Japan technology. The company also enjoys an excellent reputation with its suppliers as well as its workforce and the city of Hong Kong itself. Another internal competence of the company is the presence of a highly competitive and committed workforce led by directors who are highly trained in their respective fields. Employees undergo periodic training and evaluation mechanisms, follow strictly implemented guidelines in the performance of their respective jobs. Human resources thus become highly motivated and trained (Nissin Food Co. Ltd, 2010). Regardless of these competencies, the company faces real risks, which if left unattended may pose serious attacks on the stability of the company. Among these would be food safety issues as consumers become more and more conscious of bio-terrorism while other brands are more aggressively promoted. The risk of increasing prices of raw materials such as flour, palm oil and petroleum-based products for packaging purposes is also accounted. And more, risks related to information systems become more technologically sophisticated than ever. 3. SWOT Analysis SWOT analysis is an important step in planning but its often being underestimated its usefulness and functions. SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans (Ferrel, et al., 1998). Strengths Nissin Instant noodles have made a significant impact in the Hong Kong residents diet ever since the companys branch was established therein in 1984. Thus the company enjoys a high reputation with the brand itself having instantaneous recognition and respect by its patrons. The brand enjoys sustained loyalty among consumers, its manufacturing sector known for sanitary and environmentally friendly production processes, and the product is known for its flavor and taste, price reasonability, health attributes, and long shelf life, characteristics which make Nissins instant ramen noodles highly appropriate to the lifestyle of the modern Hong Kong resident. Mr. Momofoku Ando had retired in 2005 but the family has retained its unique capacity to adjust its products to various cultural contexts, delivering dozens of varied flavors for different country and city preferences and its keen recognition of new complementary products like environmentally friendly containers and cups to merge and l ink-up with manufacturers of these innovations to ensure cost efficiency to sustain business scale. Weaknesses There is no apparent weakness of the company except perhaps that the aggressive expansion of its business may have reached the limits of saturation. The relatively unchanged firm logo and design over half a century may have become boring among consumers psychological recognition. Brand familiarity does have a second edge in that it may psychologically influence consumers to try out a new brand. Nissin Food has also been relatively overtaken by other firms in cutting the preparation time for the instant noodles product as Mummy and Fuku noodles can be eaten straight that matched perfectly instant. Opportunities Hong Kong is a huge market for the food industry with its population of over 7 million expanding at an average annual growth rate of 1%. The market potential is therefore inspiring especially considering the fact that over half of this population is urban based with more and more young people drawn into high paced urban living. There are also more young women from both local and foreign places entering the workforce. This means that local family populations are left without the traditional ways of cooking and food preparation as women who were formerly tasked with culinary preparations at home migrate to the center for employment. The emerging demographic picture also portray a steadily growing segment of single people in the labor force, swelling the ranks of those who would prefer instant and fast food rather than traditional long-time home cooking. Nissins early demonstrated concern for environmental and health safety concerns, seen in the establishment of its food safety research institute is also a positive sign given the worlds increasing concern for environmental safety standards and the increasing health consciousness of people in recent times as they look consistently for low fat, low salt diets. Hong Kongs fast paced society also is an opportunity, as the citys demands for instant convenient food remain high. This offer Nissin the opportunity to expand from noodles to other instant food such as coffee, juice drinks, spaghetti, bread and snacks and the chance to establish linkages with other food outlets like restaurants, or otherwise introduce distribution innovations mobile snack center in schools, shopping malls, cinemas and exhibition halls. Threats The instant food competition comprised of the companies mentioned above and other brands like Doll noodles, Sau Tau and Master Hong pose the main threats to Nissin Foods. If the growing health consciousness provides a positive note vis-a-vis the companys effort at developing safer and healthier products, there is also a downside as mass media increasingly airs concerns about monosodium glutamate (MSG) and other preservatives used in instant food production. There is also a growing taste and preference for restaurant food and fine dining especially among the new rich. The emergence of organic and fresh instant noodles in the market particularly by the competition and the rising prices of wheat and other raw materials are foreseen to pose considerable threats especially with rising demand for these products by other demanders worldwide. Discussion This section will critically propose some strategies that Nissin Food Co., Ltd might implement in consolidating or even expanding its hold in the instant foods market in Hong Kong. Michael Porter recommended three generic strategies in this regard, namely cost leadership, differentiation, and focus (Porter, 1980). In terms of cost leadership, Nissin Food has always been ahead in the development of low cost instant noodles and other food products compared to many of its competitors. Company policy has always been directed to the elimination of operational glitches that would lead to increased production costs and streamline the process. This explains why despite the upgrading of technological capacities and the establishment of research institutions that would simultaneously increase expenses, Nissin Food is still capable of producing high quality noodles the be sold at relatively affordable prices on the shelves. With regard to differentiation, the Nissin Food Company has managed to diversify its food products from noodles to cereals and other products like biscuits, chocolate flake cookies and even lactobacillus drinks. Even its traditional offering, the instant noodles has been diversified into several types as cup noodles, the pillow type instant noodles, the fresh instant noodles, the thick straight noodles, and frozen types all in 450 different flavors. Innovation had always been key to product diversification and it need not be always a high-fangled high technology based development as long it gives the company a keener competitive advantage over other firms in the market (Porter, 1996). Thus, the simple idea of introducing the Nissin straight thick noodle led to increased volumes of sale in 2008. Differentiation allows a company to address the demands of consumers across a wide range of segmentation (Porter and Kramer, 2006). In its Hong Kong operations, the company has differentiated its products to all sectors of the population not only through diversified products but also through careful studies as to what products might have a more competitive appeal to certain sectors. Discovering for example that in their United States operations, Chow Mein noodles seemed to be the preference of Americans, the company also aimed at making this product appealing to the foreign sectors of the Hong Kong population. Finally, Nissin Food Company has always been secure in the instant noodle as its niche in manufacturing and sales and primarily targeting the working population. A niche approach is basically developing greater competitive advantage in a sector or product and holding on to this advantage through differentiation and innovation strategies (Porter, 1985). Among the three, differentiation appears to be Nissin Food Companys strongest and most effective strategy, allowing it to constantly increase its sales over the years and expand operations to address an ever larger share of the market. Differentiation has also allowed it to penetrate western markets such as the United States, Russia and even Mexico. In the United States, chow mein had attracted the microwave generation because of its microwavable fried noodle through innovative advertising. New products should always be based on prior arket surveys to test the levels of demand and businesses must always have a clear vision and strategy for diversification, planning against the risks involved with an honest regard for the gains it expects to achieve (Ansoff, 1957). Nissin uses both related and unrelated diversification techniques as, not contented with its traditional noodle offerings, it has innovated and expanded also to frozen foods, cereals, and nutrition drinks. Such risks have been repaid with dividends through the recent years. Conclusions and Recommendations Nissin Foods Company, Ltd. in Hong Kong faces has demonstrated a stable and strong internal competence structure. It has managed to sustain efficiency and close coordination among the various phases of its operations, making its various departments including the management, production, marketing, and research units mesh smoothly. It is in food safety and quality standards that the company stands out among the rest of competitors in the Hong Kong market and it is highly recommended that this be made part of a comprehensive advertising strategy that packages not only products but the entire company itself as an environmentally friendly corporation in tune with its recognized corporate responsibility to save the earth. This would be a leading promotional strategy as the company funnels through its Food Safety Research Institute, thorough investigations and research of environmentally affective chemicals, organic inputs as they affect the products of its farms, breeding stations, fisheri es, feed plants, ingredient plants and its productions plants as well. The Hong Kong macro-environment also appears to be a favorable one for Nissin Foods, affording it a competitive area where the company could showcase both its traditional and innovative offerings to an ever growing and constantly differentiating and segmented population. The change in administrative governance appears not to have made a significant impact on the robustness of business competition within the region. The PESTEL environment thus could be taken as a general plus factor. It is again in the area of environmental considerations that Nissin must focus on. It is recommended that the attention must be directed toward the pollution side of its post-operational activities. By this, as extra concern on disposal of containers and on the earth-friendliness of such packaging as Nissin continues to use non-biodegradable materials in this regard. To more promote the environmental image of the firm could innovate towards the end of minimizing its ecological footprint. On social relations, Nissin could collaborate with social and ecological groups toward the development of programs addressing Hong Kongs expanding ecological problems of pollution as well as industrial congestion. (word count 3,823)

Conformity and Fear in Self-Reliance :: Self Reliance Essays

Conformity and Fear in Self-Reliance The quote that most provoked thought and emotion from within me comes from the essay "Self-Reliance" by Ralph Waldo Emerson. "To be great is to be misunderstood" was used by Emerson to explain the lagging growth of the conception of ideas and thoughts of his generation. Original and novel ideas were scorned by conservatives who believed the best method for learning was by repetition and memorization of proven classics written by previous generations. The continuing timelessness of his quote is still in effect today as the scientific community has evolved to accept unaccustomed theories, yet encounters difficulty when relating to the public new and extreme ideas that rebut the system. In history, the results of individualism has been spread world wide. Important leaders, thinkers, and philosophers with radical ideas in virgin areas of research were making significant finds rapidly. Yet progress was slowed by short-sighted men who failed to see greatness. Aberham Lincoln was a revolutionary in his time with his views on slavery and forgiveness of the South. Yet his death was the result of one man's refusal to accept what was once a proud and rich land reduced to tatters- left to ruin because of her failure to accept civil reform. Herman Melville's work in Moby Dick was considered a classic, yet Melville died a figure with lost prestige, poor and unaccepted. When he was laid to rest in 1891, he was remembered only as the author of entertaining novels of the South Seas. It was not until 1920s when his place in America's foremost writers was assured. His works are now great masterpieces of emotion that were misunderstood while he was still alive. Another important example is democracy. In medieval times, monarchies and kingdoms ruled the land. Today, the monarch is merely a figurehead behind the power of democracy. At the birth of the democratic rise of the United States of America, the colonists were thought of as upstart fools- dreamers believing the impossible. English royalists were aghast at the indignation of the colonies to separate from England and form their own country. In present day, the United States is the sole world power, a great

A Problem in the American Education System Essay

This problem will have dire effects on those dropouts as well as other aspects such as financial and health problems. Many factors ultimately push the students off their path to a bachelor’s degree and end their dreams of ever becoming a doctor or maybe even a businessman. Along with those causes, there are serious consequences for those college dropouts. One effect that happens when a college student drops out of school would be that a huge debt must be paid back and since they dropped out it turn to be a wasted investment. Students looking to go to college, hen dropout have no answer to pay the money back which they were hoping to find a career with a college degree they wanted. Students often put a lot of money into college, thus putting them into debt. When the payments are finally too high for them they cannot afford to stay in school and all the money they put in is for naught. The students are under so much debt after dropping out and have nothing to show for it. That college degree they were hoping to receive at their graduation in non-existent which they were hoping to use as a tool in order to become successful. Who knows hat career a degree could have got them into, maybe a well-paying Job that would keep them from going broke from paying all the loans they used to go to school. All the money that could have been used in order to gain knowledge will be down the drain and the student now would have a harder time paying back those loans and supporting themselves. This also affects the schools and the taxpayers. All the money they are putting into paying and helping students with their schooling has nothing to showing for it. The millions of dollars that are being put into paving the way for the tudents financially do not pay off and instead money is lost. This slows down the whole country as there are less available new young workers to fill the positions of new work. Without a college degree, students earning potential are much lower than those of graduates. In order to pay off debts from loans to go to school and bills, students have to find a source of income and without a degree, finding a Job is much harder. Dropouts have a harder time finding a Job than those already with a degree. With a bachelor’s degree, it is easier to find Jobs as many opportunities are now open. A cause of college students dropping out is the amount they have to pay for just one semester. As many students do not even have a Job it is difficult for them to support themselves after paying for tuition and also pay for supplies they would later need for classes such as textbooks. A report from the Public Agenda for the Bill & Melinda Gates Foundation shows the students from the ages of 22 to 30 years old shows state that their main reason for leaving school is their problems with financial stability. From my experience as of today even now I have a problem having to pay for school at CSULB. Luckily I have financial aid because without it I would it I don’t think that I could have survived the first semester of college. Family problems such as having kids during school, or taking care of a sick family member could cause someone to leave college. Having to spend a large amount of time away from thing such as studying for an upcoming test really hurts the students in the long run. This hurts them because it keeps them preoccupied with things that they need to accomplish which is their dream of finding a career in their major and pursue it. Stress develops which may be from the numerous personal problems. Rising uition make students actually have to think about what they buy next. Most students already have to Juggle work and school at the same time Oohnson). I know for a fact that going to college is a hard task even now as a freshman, there is more homework and students have to pay for everything themselves. I understand why most students drop out because they cannot handle the pressure. Another cause for college dropouts is their scores on exams. Of course doing bad on a test will make students fail your class as this is already obvious. Lots of factors also cause students to do poorly on their exams such as stress and financial roblems One final cause for students leaving college early is their lack of motivation and preparation. As most students say their high schools did a poor Job in preparing them for their next step in life stated from a survey by Public Agenda (Crosseley). In college students have to manage their time socially and their time for school. Prioritizing this time is now critical of the all the times spent in school. Being bored really will not help you succeed in receiving a bachelor’s degree in your hand. For the many college students that attend today that go to college it may be a hard task. Still, college dropouts remain a problem in the American education system.

Free Essays on Contrasting Rich And Poor In Grapes Of Wrath

One of the ironies of Steinbeck’s novel, The Grapes of Wrath was that, as Ma Joad said, "If your in trouble or hurt or need go to poor people. They're the only ones that'll help the only ones."(pg 335) The irony is that if you need something you have to go to the people who have nothing. There are many examples of this in the book. The first example of this is at the truck station in chapter 15 when the restaurant owner and waitress give the family bread at a discounted rate, and candy two for a penny when it is actually nickel candy. The truck drivers then leave large tips to the waitress. Neither the truck driver nor the restaurant owner and waitress are very rich but they are generous anyway. In chapter seventeen the person at the car dump gives Tom and Al things for way discounted rates. Ma Joad is also an example of this. The Joads are poor and yet they give what little they have to the children who need it. They also stay and help the Wilsons when it just slowed them down. Another example is when the small land owner that Tom first gets work warns them of the plot of the Farmer's Association to raid the government camp. The clerk in the company store in chapter twenty-four is also generous, lending Ma ten cents so that she can get sugar for the coffee. These acts of generosity are contrasted to how the rich people are trying to rip off the migrants. Chapter seven shows how the car dealer rip the people off by selling them pieces of junk for high prices. They use cheep tricks such as pouring sawdust into the gears or transmission to cut down the noise of the car and hide problems. They take advantage of the tenant farmers ignorance of cars and interest rates to make a profit. Chapter nine shows how junk dealers bought all the things from the tenant farmers at a very low price. The farmers have to leave and can't take the stuff with them, so they take advantage of the fact that the farmers have no choice but to sell ... Free Essays on Contrasting Rich And Poor In Grapes Of Wrath Free Essays on Contrasting Rich And Poor In Grapes Of Wrath One of the ironies of Steinbeck’s novel, The Grapes of Wrath was that, as Ma Joad said, "If your in trouble or hurt or need go to poor people. They're the only ones that'll help the only ones."(pg 335) The irony is that if you need something you have to go to the people who have nothing. There are many examples of this in the book. The first example of this is at the truck station in chapter 15 when the restaurant owner and waitress give the family bread at a discounted rate, and candy two for a penny when it is actually nickel candy. The truck drivers then leave large tips to the waitress. Neither the truck driver nor the restaurant owner and waitress are very rich but they are generous anyway. In chapter seventeen the person at the car dump gives Tom and Al things for way discounted rates. Ma Joad is also an example of this. The Joads are poor and yet they give what little they have to the children who need it. They also stay and help the Wilsons when it just slowed them down. Another example is when the small land owner that Tom first gets work warns them of the plot of the Farmer's Association to raid the government camp. The clerk in the company store in chapter twenty-four is also generous, lending Ma ten cents so that she can get sugar for the coffee. These acts of generosity are contrasted to how the rich people are trying to rip off the migrants. Chapter seven shows how the car dealer rip the people off by selling them pieces of junk for high prices. They use cheep tricks such as pouring sawdust into the gears or transmission to cut down the noise of the car and hide problems. They take advantage of the tenant farmers ignorance of cars and interest rates to make a profit. Chapter nine shows how junk dealers bought all the things from the tenant farmers at a very low price. The farmers have to leave and can't take the stuff with them, so they take advantage of the fact that the farmers have no choice but to sell ...

Apartheid in South Africa essays

Apartheid in South Africa essays Apartheid- defined as the South African term for apartness and a political platform combined of anti-communism ideals and racial segregation. Although the Apartheid laws were abolished, racial conflicts are still present and occurrent in South African society with racial equality still not achieved. South African was colonised by English and Dutch explorers in the 17th century. English domination of the Dutch resulted in the Dutch establishing their own colonies and the discovery of diamonds in these new colonies in 1900 triggered English invasion, and later the Boer War. Throughout the early 1900s, racial groups began to emerge in the continent, with the two European groups of the English and Dutch, a small Asian group of Indian ancestry, a sizeable group of mixed races Coloureds and a majority group of native Africans. The European groups shared power until the Dutch (Afrikaner) National Party gained majority in the 1948 elections. Apartheid laws were introduced to cement control over the economic and social system in South Africa and to maintain white domination while implementing racial separation. It is felt by many that the National Party felt threatened by the large population of native Africans and wanted to apply policies to control their movements. With the introduction of Apartheid laws, the Australian National Congress (ANC), formed in 1912 as the first nationalist organisation in Africa, became more vocal in their demands and more committed to their methods of equality. South African governments did not follow the growing trend to legislate for racial equality, instead establishing over 2000 regulations dealing with the actions of Africans. These regulations were not only racially unjust, but took away many of the basic human rights that should have been held by the native population. Prior to the introduction of Apartheid, races were segregated in towns, black trade were unions outlawed, c...