My Family And My Background Essay - 1665 Words

Researching my family and my background, I have found that I have ancestors from several countries, including Germany, Sweden, England, Ireland, and Scotland. They all came to America for a variety of reasons ranging from religious persecution, hope for a better life with better economic conditions, famine, family issues, and to colonize America. First off I had a lot of relatives come to Connecticut from England in the 17th century to form colonies that came for many reasons, one of which was to escape the oppression of their mainland England was at the time. The first one to come over was my double 11th great-grandfather Andrew Warde, who lived from around 1597 to 1659. According to Andrew Warde and His Descendants by George K. Ward, he emigrated from England to Massachusetts around 1630. He was a pretty influential guy in Connecticut and even has a monument in Fairfield Cemetery in Connecticut erected in his honor. He had many relatives on my father’s side come from Englan d to start a colony in Connecticut, including my 10th great-grandfather Stephen Goodyear, who lived from 1598 to 1648. According to the Genealogy of the Goodyear Family, he left England and went to America around 1637 aboard the Hector with others to begin a new colony in the New World. They did this because they heard there was a good, safe place with good farming soil in Quinnipiac, present day New Haven Connecticut. They were also probably upset about taxation, conflict with Scotland, and religiousShow MoreRelatedMy Family And My Background Essay1511 Words   |  7 PagesResearching my family and my background I have found that I have ancestors from several countries including Germany, Sweden, England, Ireland, and Scotland. They all came to America for a variety of reasons ranging from religious persecution, hope for a better life with better economic conditions, famine, family issues, and to colonize America. First off I had a lot of relatives come to Connecticut from England in the 17th century to form colonies that came for many reasons one of which was to escapeRead MoreMy Family Background745 Words   |  3 PagesLamarre- 9/24/2013 3.3 Investigation and analysis of family history (Plan Ahead) There were many different things about my family history because my parents both came from a different family background. The one thing my grandparents have in common is that they are Chinese. One different thing is that they are born in separate places. My grandparents on my father’s side were born in China then came to Burma, while my grandparents on my mother’s side were born in Burma. Another interestingRead MoreFamily : My Family Health Background1235 Words   |  5 Pages My Family Health Background Denise Xylia Lagua California State University, East Bay â€Æ' My Family Health Background Family medical history is relevant for everyone to know and understand. 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I am a first generation Mexican-American, and my first language was Spanish. I have two other siblings, and hopefully will be the first to receive a Bachelor’s degree in my family. I have been married to my amazing husband for twelve years. We have two wonderful, loving, and silly children, a daughter (7), and a son (5). My familyRead MoreMy Family Heritage : A Tradition Or A Person s Background Essay977 Words   |  4 PagesHeritage is a tradition or a person s background. Events that happen in a person s life can affect the way a person s views their heritage. A heritage in my family is to be there for each other whether in good or bad times. Growing up in my household where my mom and her siblings, cousins are close with that I grew up in a close-knit family. However, during the time of my brother s death. M y family heritage is put to the test. 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Towards the Quality of Higher Education Free Essays

string(137) " that various aspects of the university Education in India and means for the improvement and reorganisation of the university education\." TOWARDS THE QUALITY OF HIGHER EDUCATION Brief review of the quality of Higher Education in Ancient India: The system of higher educaton is started from the ancient times in India. During the ancient times, Education was closely linked with religon. It was taken up by Teachers as a labour of love and by the students as part of their training for culture and citizenshp. We will write a custom essay sample on Towards the Quality of Higher Education or any similar topic only for you Order Now It was not universal education. In regard to higher instituton of learning – Tols (Higher Education) was developed among the Hindus and Madrassah (Higher Education) was existed among the Muslim. Although the Hindu and Muslims had separate learning institution, many features were common to both the types of institution. Under the Buddhist rulers in India, Learning was fostered by the numerous monasteries under the guidance of monks and nuns. The Brahmanical system of education mainly centered at home of Individual Teacher was superseded by monasteries system of Buddhist education. For the first time in India, and perhaps in the whole world, a great famous Buddhist seat of higher learning like Taxila, Nalanda, Vikramshila and Vallabhi Universities were flourished in India which can be compared with modern Universties. These Universities were better well organised than the Brahmanical higher education because they recieved state endowment for many centuries from the successive kings from the time of Buddha. The Universities introduced regular course of studies in different subjects and admission test for all students. There was no discrimination in admission and Technical Education and Women Education were also introduced as it recieved encouragement from the ruler and the rich people. Amongst these Universities of ancient India, Nalanda Universities was take its specialities. Students from China, Nepal, Tibet, Korea etc came to study and obtain valuable knowledge. Entrance examination was very strict and only 20 percent of the candidates succeeded in getting admission during this period. Brief review of Indian Education Commission in Modern India: The system of higher education, which we find today in our country, started after the advent of the British in India. When the Brtish established their authority in India, they did not willing to take responsibility of educating the Indian people. In order to trained some Indians for minor jobs in the company’s office, they started schools and colleges. By the charter act of 1813, only one lakh of rupees for the improvement of the quality of education was left. The British rulers only established many government and private colleges and the higher education was in a very disorganise at the time. Within a period of time, The British rulers realised that the necessity to organise and improved the quality of education and appointed Wood’s Despatched of 1854. As a result of the recommendations made by Wood’s Despatched of 1854, the Universities of Culcutta, Bombay and Madras were established n 1857 on the model of London University. On the model of the formers, Allahabad University was also established in 1882. But all universities performed the functioned of only conducting examinations and affiliating bodies and undertook no teaching and research. In order to enquired the standard of Indian education and prepared recommendations, the Government of India appointed various Indian Education Commissions and selected eminent educationist as a members. Within a period of hunhred years, sixth Education Commissions were appointed. The recommendations of sixth Indian Education Commissions can be conveniently studied under the following:- i) Indian Education Commission or Hunter Commisson, 1882:By accepting the recommendation of Hunter Commission 1882, the college education recieved a great impetus and a number of colleges were established during 1901-1902. ii) Indian Universities Commission in 1902:During the period of Lord Curzon, University Education made a great progress. In order to improve the quality of University Education in all branches, Lord curzon adopted the policy of control and improvement. He appointed Indian Universities Commission in 1902 in order to enquired the conditions and working of the Indian Universities and made necessary suggestions. Two years later, Indian University Act 1904 was passed. This act brought many important change in the organisation, jurisdiction, powers and administration etc of the universties. The expansion of the university education was checked for sometime, due to lack of revolutionary change in the system of universities. But it was admitted later on which improved and reforms the conditions and standards of the contemporary universities and colleges. ii) Culcutta Univesity Commission or Sadler Commission, 1917:After the establishment of Allahabad Universities 1882, no new universitiy was established till 1917. However, a number of colleges were increased. In order to cope with the increased work, the Culcutta Univesity Commission or Sadler Commission was appointed by The British Government. Although, the commission was mainly interfere in the problems of Culcutta University, it gave out reforms and change which were great value into higher education in India as a whole. Now, the Universities were not only examining body, but became a centre of teaching and learning. By accepting recommendation of the Commission 1917, more than 16 universities were established in different places of India till 1947. iv) Indian University Education Commission or Radhakrishnan Commission, 1948:The expansion of higher education has recieved a great impetus after Independence. Number of institution in the field of higher education and enrollement of students in the centers of higher studies were increased year by year. The university education was imparted through arts, science and commerce and professional colleges, researched institution. The institutions deemed to be universities under the University Grants commission Act, 1956. In adition to Central universities, state universties and their affiliated colleges, Indira Gandhi Open Universty and other Open Universities are doing commendable job in the field of higher education. In order to meet the present and future requirements of the country, the Government of India appointed Indian Education Commission or Radhakrishnan Commission in 1948 to suggest improvements and extentions of th Indian Universities. The terms of reference of the commission were very wide and vast. It suggested that various aspects of the university Education in India and means for the improvement and reorganisation of the university education. You read "Towards the Quality of Higher Education" in category "Papers" Research and other standard of university educaton, problems of teachers, curriculum, medium of instructon, religious education, problem of discipline, health and residence of the students an such allied problems in the perspective of the natonal and international conditions. In fact, The report of this Commissions is the most comprehensive report on education, but its recommendations is very important and far reaching consequences. ) Secondary Education Commission or Mudaliar Commission, 1952 vi) National Education Commission or Kothari Commission (1964-66): Since Independence, there has been a good deal of quantitative development of education but qualitative has lagged behind. Unimplementing of the policy of the directive principles of the constitution to make fre e and copulsory education below 14 years, problem of literacy, low standard of primary and secondary edcation, diversification of curriculum and problem of educated unemployment were the the main problems since Independence. In order to evaluate the different stages of education and to evolved a National system of Education, the Government of India appointed the Kothari Commission in July 14, 1964. The Commission submitted its report and recommendation in June, 1966. People expressed high hopes when the Reports of the Education commission was first published in 1966. Already, several years have passed, nothing has practically been done to achieved the targets as recommended by the commission. The commission give any useful suggestion an the source of finance, on which the implementation of the recommendations entirely depends. If it si of course a fact that it was not the bussiness of the commission to deal with the financial side, but we cannot ignore reality. The suggestion made by the Kothari Commission in respect of different organs of education were very important. The Government have already implemented some of the suuggestions and the effort are still being made to make important the rest of the suggestion. Taking all things into consideration, we may say that the report of the education Commission is a sincere attempt to improve the existing system of education in all aspects and in all stages. If it can be implemented, it will remove some of the glaring defects of our educational system. Problems Higher Education: It is clear from the above discussion that the expansion of higher education has recieved a great impetus since independence. The policy of the government still has been to increase the number of the institutions of higher education rather than the aim at the qualitative progress of higher education. Besides this, the government did not pay proper attention to the multi-lateral problems of higher education and not made special effort to remove the defects of higher education. Since recommendation made by the Kothari Commission, the government declared National Educational Policy of 1986. It is good that is being given to the specializaton in higher education. The problems of the higher and University education in india is nothing but the problems of Indian society in general. If we want to established a society based on the principles of democratic socialism, we must have reoriented the entire educational structure. Without a hgh standard of general, vocatonal and professional education, democracy cannot survived. But there is a still a lag between our Ideal and reality. Our Universities have not been able to shake off the heavy load of bookish knowledge. The main problems for the falling of the standard and quality of higher and universities education in India are under the following:- 1. No definite aims among students of higher education:One of the problem which checked the standard of higher education is its aimlessness. Most of the student are recieved higher education without having any definite aim. the student must have definite aim before starting hgher education. In order to raise the standard of higher education, the university should change the aims and objectives. Newmen remarks the aims of university education in 1952, â€Å"If a practical and must be assign to a university course, the i say it is training of good members of the society. † 2. Increase of Wastage and Stagnation:The problem of wastage and stagnaton exist in a greater degree at the stage of higher and university education. Most of the important causes of wastage and stagnation are Ineffective methods of teaching, unhealthy environment of institution and society, defective system of curriculum and examination and lack of finance among the students etc. In order to solve this problem, it suggest that to make healthy environment of institutions and society, revised and reforms of curriculum and examination system, raise the standard of teaching and given grants and loans to effort the study of students. 3. Lack of interesting subjects in Curriculum:Most of the the curriculum of college are old and out of date and failed to fulfil the interest of the student which checked the intellectual developmentof the student. Radhakrishnan Commission remarks, â€Å"A curriculum which had validity in the vedic period or the renaissance cannot continue unaltered in the 20th century. To solve this problem, the curriculum should revised and reforms for the interest of young advanced students. 4. Specialisation in Education:University emphasized spacialization in different subjects. After completed University education, students acquired special knowledge and skills in some particular subjects. Their outlook remains narrow and unbalanced to became c ompletely educated in real sense. This narrow specializaton can be remove by establishing harmony between general education and specialization which developed the personality of the students and will became dutiful citizens. Absence of proper Guidance and Councelling for student:The absence of proper guidande and councelling, the students select their course according to their own choice or with thw advice of some inexperience persons. Consequently, most of the students make a wrong choice in their subjects and lost interest in their study. In order to solve this problem, the educational institution should make provision of experience and trained persons to provide proper guidandance and councelling of students from the beginning till the end. 6. Low standard of Teaching:The standard of teaching in our colleges and university is very low. Many suggestions has made to raise the standard of teaching in education. The more prominents are – increase the salary of the teachers, balanced workload of teachers, improvement of service condition of teacher, provision of tutorial classes, well-organised libraries and laboratories, encouragement of debates and discussion, Professional training for Junior Lecturers and Re-orientation Course for new Lecturers. 7. Defective Examination System:The present examination system of our universities has many defects and severely criticized by ndian and foreign educatonist. The university education commission of 1949 points out that, â€Å"If we are any single reforms in universty, it should be that of examinaton. † It can be reforms through scientific method. In order to reforms Examination system, it suggest that adoption of continous comprehensive internal evaluation, semester system and grading system. It also suggest to developed question banks, demarcation of syllabus, setting and moderations of question, Evaluation of answer script and conduct of examinations. 8. Indiscipline among the Student:The problem of indiscipline among students is very serious and complicated in educatonal institution. Financial irregularity, minor and disorderly misconduct, theft and burglary, sex misconduct, misuse of privledge and cheating n examination were the main problems of institutions. Professor Siddhant remarks, â€Å"the best way to solve is to divert the activities into healthy channels including sports, games, cooperative, living in hostels, self-management of masses, organise debates and symposia, councelling of indiscipline students etc. 9. Too much Interference of Student Societies in College Affairs:The student societies in educational institutions of higher education also make a serious problem. They were too much interfered in the affairs of the institutons which prove to be a scourge. In order to reduce this problem, the uiversity ntroduced legislaton for keeping control of student societies. In order to developed the intellectual powers of student and homely atmosphere of instituton, the student societies should also organised programme like leadership training, Life skills training, seminars, workshop etc. 10. Rapid increase of the number of Student:The development of higher education in India is taking place rapidly since Independence. The numbr of students in higher institution is constantly increasing. University Grants Commission remarks that, â€Å"If increasing number admtted in our universites without corresponding expansion of facilities, there is a great risk of the academic standard being imparted further. † In order to checked the ncreasng number of students in university, It has been suggested that the new and modern method of selective system of admission should be adopted. 11. Non-availability of Educatioal Facilities and Lack of Funds :The main reason for the low standard of education in universities is non-availability of educational facilities and lack of funds. The student face shortage of books, libraries are not well-equiped. In many degree college, no proper building and classroom and do not possess even playgrounds. To solve this problem, a high level committee should be appointed for providing necessary funds to the institution. The Government of India, the State Government and non-governmental organisations and the rich people should provide necessary funds and donations to raise the standard of higher education. 12. Poor conditions of the salary Teachers:The teachers of colleges and universties are getting less salaries and allownces in order to meet their expense. Consequently, they are not able to devote themvelves with heart and soul into the teaching works. The Commission has made important provisions to increase the salaries and allownces of the teachers at different stage should be implemented by the Government. 13. Too much burden of the works and service of the Teachers: The teachers also have been burdened with too much work. and not able to performed th teaching work properly. The prominence teacher of university were given research work. The Kothari Commission has remarked, â€Å"There is much serous concern that in many places there is too much teaching but relatively too little of good teaching. † The Education commission has made important provisions to improvement the works and service of the teachers should be implemented by the Government. 14. Wide gulf between the Teachers and Students:The increasing number of students in higher education making a wide gulf between the students and the teachers. The teachers not able to recognise each students of the class and no interaction between them. While in western countries the students and teachers work together like family and build good relationship between them, there is no relatinship between the students and teachers and separated their interest in India. In order to build relationship between the students and the teachers, it is necessary to adopt tutorial system. Beside this, the educational institution should also organise more interaction programme like debate and discussion, seminar, workshop etc which help the students to increase their knowledge with the help of the teachers. Almost all the above problems have attracted the attention of the University Education Commission, which has made many suggestions to solve these problems. Most of these suggestions have been accepted by the government and many of them have already been implemented. It may, therefore, be hope that after solving all our present problems, the higher education will make the complete development of the personality of the youth and by developing their intellectual and physical powers will make them able citizens of the country. How to cite Towards the Quality of Higher Education, Papers

Marketing Plan Clorox free essay sample

One of the Company’s leading products is Clorox Disinfecting Wipes, a product in the Nondurable Goods industry. Clorox was the first company to release these disinfecting wipes and is currently leading the wipe industry with a 47 percent market share. This is a highly competitive industry with the threat of many substitutes. The main competitors to the Company are Lysol Sanitizing Wipes, Mr. Clean Wipe-Ups, and Windex Wipes. Customer Segmentation This marketing plan will focus on the needs and wants of single and divorced males ranging from ages 18 to 34. Currently, Clorox targets its wipes to an undifferentiated market. By shifting the focus to males, Clorox can increase its market share. Males are looking for speed and convenience when purchasing cleaning products. The functional and psychological benefits as well as the level of involvement when purchasing must be considered when developing a successful marketing plan. Marketing Strategy To achieve the goals of the marketing plan, Clorox must take into account all aspects of the marketing mix. We will write a custom essay sample on Marketing Plan Clorox or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page By redesigning the packaging to show that it is safe for the use of many male-oriented products such as electronics, Clorox will have the potential to increase its sales to the target audience. Competitive pricing is a key issue in maintaining current position in the disposable wipes market. Placement is also a main factor that contributes to male awareness. By placing the Wipes into male-centered areas of stores, Clorox will be able to easily reach these new consumers. Lastly, promotion in male-centered media channels is the best way to increase male product awareness. Conclusion By focusing on a concentrated market segment rather than a large undifferentiated market, Clorox will have the potential to increase its sales and market share.

Trinidad And Tobagos Banking Industry Analysis Commerce Essay Example For Students

Trinidad And Tobagos Banking Industry Analysis Commerce Essay The banking industry in Trinidad and Tobago has slightly changed in the past few old ages. This resulted in the entry of some Bankss and the re-entry of others. This paper strategically analyses the current strategic place of one of the major Bankss, First Citizens ( FC ) . First Citizens Bank is a member of the First Citizens Group, which consists of: First Citizens Bank Limited We will write a custom essay on Trinidad And Tobagos Banking Industry Analysis Commerce specifically for you for only $16.38 $13.9/page Order now First Citizens Asset Management Limited First Citizens Trustee Services Limited First Citizens ( St. Lucia ) Limited First Citizens Securities Trading Limited Caribbean Money Market Brokers ( CMMB ) For the intents of this paper, First Citizens Bank s current schemes that are being utilised to accomplish its end are critically analysed along with its internal and external environment, which set up the forces that drives alteration and the cardinal success factors that sustains competitory advantage. All these factors give rise to the SWOT analysis of the bank, which matches the bank resources and capablenesss to the competitory environment in which it operates. Outline1 1.2 Background2 2.0 DEFINING THE Industry3 3.0 ORGANIZATIONAL FRAMEWORK4 3.1 Vision, Mission and Objectives of First Citizens5 3.2 Scheme6 4.0 THE DYNAMICS OF THE EXTERNAL ENVIRONMENT7 4.1 PEST Analysis8 4.2 Industry Analysis for First Citizens9 4.3 The Industry Life Cycle10 4.4 Key Success Factors11 5.0 THE DYNAMICS OF THE INTERNAL ENVIRONMENT12 5.1 Resource Analysis13 5.2 Value Added14 Figure demoing the connectivity between First Citizens Value Chain and that of its Customers15 5.3 McKinsey s 7S16 5.3.1 Structure17 5.3.2 Systems18 5.3.3 Style19 Staff20 Skills21 Scheme22 Shared Value23 6.0 S.W.O.T ANALYSIS 1.2 Background FC Bank is the first autochthonal bank of Trinidad and Tobago and was formed in 1993 out of the merger of three failed fiscal establishments viz. : The Workers Bank of Trinidad and Tobago 1989 Ltd, Trinidad Co-operative Bank Ltd and The National Commercial Bank Ltd. It is the 3rd largest bank in Trinidad and Tobago and the fastest growth. Over the old ages, FC Bank has become one of the part s prima and most dynamic fiscal merchandise and service suppliers. This place is farther strengthened by the acquisition of CMMB one twelvemonth ago. The leading s hardiness at the bank has championed the industry in engineering, advanced merchandise offerings and profitableness, which earned them legion awards, with the most recent being World Finance magazine Best Bank, Trinidad and Tobago 2009 . 2.0 DEFINING THE Industry The banking industry is portion of the Financial Services Sector, which is extremely regulated by the Financial Act of Trinidad and Tobago. The Financial Services industry comprises of recognition brotherhoods, investing Bankss, insurance companies, common financess etc. All the aforesaid offers similar services as retail banking as per a regular bank, but the Commercial Banking Sector consists of all fiscal establishments permitted the Financial Services Act and approved by the Central Bank. There are a figure of commercial Bankss approved by the Central Bank and registered under the act, these include: First Citizens Bank Limited Republic Bank limited ( RBL ) Royal Bank of Trinidad and Tobago ( RBTT ) Scotiabank Limited Citibank ( Trinidad and Tobago ) Limited First Caribbean International Bank Intercommercial Bank Bank of Baroda For the intent of this paper, this would be defined as the industry and would be the footing on which analysis is made. 3.0 ORGANIZATIONAL FRAMEWORK 3.1 Vision, Mission and Objectives of First Citizens First Citizens vision is To go the most competitory group in Trinidad and Tobago with a well established international presence. While the mission is to construct a extremely profitable fiscal services franchise renowned for innovativeness, service excellence and sound corporate administration. To accomplish the purpose FC focuses on uninterrupted betterment of systems and merchandises, constructing a strong base of cognition and skilled workers and making strategic partnerships in cardinal sectors that add value to the franchise. The mission is underpinned by the nucleus values, which assist the employees in the accomplishment of the mission. The nucleus values are: Committedness to excellence Committedness to clients Committedness to unity Committedness to fiscal strength Committedness to employees Committedness to uninterrupted betterment The chief aim of the bank is to better profitableness with a major focal point on its return on equity. The chief aim is supported by secondary aims, which are: Leveraging Technology to make assurance in the bank s systems and process Reducing operating expenses costs while at the same time increasing grosss Aggressively increasing assets, loans and fund base Widening the scope of merchandises and services chiefly in the country of cyberspace and Mobile ( electronic ) banking Bettering First Citizens hazard direction Bettering the Group s image and service quality Intensifying the human resource competency These aims are quantified utilizing the balance scorecard, which sets specific marks needed to be achieved in order to accomplish the administration s aims. In order to accomplish the aims, each subdivision director, section and unit is required to bring forth a balanced mark card, which finally sums to the overall directional scorecard. 3.2 Scheme In order for the vision, mission and aims of FC to go operational schemes must be implemented. Figure shows the alliance of First Citizens schemes with its vision. The usage of the group s balance has made scheme devising and organizational coordination reflect the top-down mode in which scheme is developed and communicated. The Bankss bing schemes is summarised utilizing Ansoff s Directional Matrix ( see figure ) . From the Directional Matrix, FC Bank s variegation scheme exemplifies the Bank s push into a wider and more competitory industry. This is indicates that boundaries that separate traditional banking from other type of fiscal services are being eliminated, this is besides an index of the industry in its adulthood phase ( indicated in a ulterior chapter ) . Although the scheme is that of variegation it involves a wide market range. The scheme involves leveraging engineering to supply first-class client service particularly since FC is ever foremost to market. It is the technological promotion, that is the bank s nucleus competence and some characteristics ( nomadic point of sale ) gives it its typical capableness. 4.0 THE DYNAMICS OF THE EXTERNAL ENVIRONMENT All organisations are inextricably associated with its external environment, irrespective of the state to which it belongs. This association influences how the organisation operates and the merchandises or services provided. The external forces may ease or suppress organisational public presentation and may organize bounds with which the organisation is able to work. These forces shape how the organisation defines itself and how it articulates its ends, aims and schemes. An analysis of the external environment aids in understanding the forces or factors that shape the organisation. 4.1 PEST Analysis Plague analyses the external macro-environment in which an organisation operates, based on political, economical, societal and technological factors. These factors are beyond the control of the organisation but must be considered in explicating the schemes of the organisation. Plague Analysis for First Citizens The Political clime of Trinidad and Tobago has remained rather stable over the past 20 old ages. This has led to execution of statute laws that improved efficiency and decreased costs ( banking fees ) in the Banking sector, but have besides reduced borders and fee income. The latest statute law implemented is the Anti-money Laundering statute law, in which most of the states in this part is following. This jurisprudence has sought to increase the transparence of Bankss and efforts to take down the recognition hazards of the state in which the measure is implemented. The banking industry over the old ages has dynamically evolved ; this development has led to the gap of the banking industry ( regionally ) or relaxation of entry demand for big foreign Bankss, for illustration, the entry of the Bank of Baroda. This has led to farther variegation of the banking sector that necessarily breeds competition. However, although competition creates invention, this threatens the profitableness of the current Bankss in the market as larger more capitalized Bankss can undersell the local Bankss and diminish their market size. These foreign Bankss operate as loss leaders to steal market portion and farther decline chance in an already concentrated market. As a consequence, in recent old ages at that place have been re-entry of Bankss into the sector e.g. First Caribbean International Bank ( FCIB ) . Furthermore, FC is owned the authorities which suggest that there is slow determination devising in the organisation nevertheless, the authorities can be the chief borrower on the market. The universe s economic system, over the past two old ages, has experienced a downswing, which saw many states GDP diminution that resulted in declaration of recession and the plumb bob of oil monetary values, which adversely affected the banking industry of most states. However, all indexs point towards betterment in the economic system though it may be slow. The effects of the economic system has led to Bankss cut downing involvement rates and fees in order to cut down the sum of loan defaults and increase economic activity in an effort to hike the economic system. The betterment of the economic system will see trade good monetary values bettering which will increase grosss and economic activity, which will leave a greater possible for loaning and adoption by Bankss. However, there is a hazard of returning to inflationary force per unit areas with attach toing increasing involvement rates. The mal-effects of the downswing has led to increased unemployment which increased loan defau lts, nevertheless there have been some refinancing of loans in an effort to cut down defaults. Harmonizing to the Central Bank Governor, in the concern subdivision of the Guardian Newspaper, if the economic growing is slower than in the past, banking establishment will be forced to consolidate to accomplish economic systems of graduated table. This reduces competition in an industry, in which competition breeds invention and .u897cd8b6d84be72184ea16d4359164e7 , .u897cd8b6d84be72184ea16d4359164e7 .postImageUrl , .u897cd8b6d84be72184ea16d4359164e7 .centered-text-area { min-height: 80px; position: relative; } .u897cd8b6d84be72184ea16d4359164e7 , .u897cd8b6d84be72184ea16d4359164e7:hover , .u897cd8b6d84be72184ea16d4359164e7:visited , .u897cd8b6d84be72184ea16d4359164e7:active { border:0!important; } .u897cd8b6d84be72184ea16d4359164e7 .clearfix:after { content: ""; display: table; clear: both; } .u897cd8b6d84be72184ea16d4359164e7 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u897cd8b6d84be72184ea16d4359164e7:active , .u897cd8b6d84be72184ea16d4359164e7:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u897cd8b6d84be72184ea16d4359164e7 .centered-text-area { width: 100%; position: relative ; } .u897cd8b6d84be72184ea16d4359164e7 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u897cd8b6d84be72184ea16d4359164e7 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u897cd8b6d84be72184ea16d4359164e7 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u897cd8b6d84be72184ea16d4359164e7:hover .ctaButton { background-color: #34495E!important; } .u897cd8b6d84be72184ea16d4359164e7 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u897cd8b6d84be72184ea16d4359164e7 .u897cd8b6d84be72184ea16d4359164e7-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u897cd8b6d84be72184ea16d4359164e7:after { content: ""; display: block; clear: both; } READ: Homeless Assistance EssaySocially, offense is considered a two edged blade since it creates an chance for Bankss to finance security companies ; nevertheless, it has led to the issue of many concern proprietors and therefore capital. A high offense rate can harm the state s foreign direct investing ( FDI ) chances and by extension touristry. As the state is developing, one would happen that people are being more educated and clients are demanding better quality and measure service ; people are intolerant of hapless client service and deficiency of promotion in the banking industry. It is foreseen that, if the issue of offense is non addressed that there would be farther fl ight of capital, lessening in FDIs and touristry. In add-on, if Bankss do non come on with engineering, there would a flight of clients to the replacements in the market. The banking industry has to the full embraced engineering, which has revolutionised the sector. The technological promotion by Bankss has empowered clients so that they control their fiscal information with greater entree. This has besides led to the creative activity of high issue barriers. However, non all clients may encompass these technological advancements and prefer the traditional banking services. If this patterned advance continues at the current gait, the industry will be extremely serviced and merchandise innovated. However, client must do greater usage of these technological promotion as with nomadic telephone if the industry is to be farther product/service diversified. 4.2 Industry Analysis for First Citizens The industry analysis AIDSs in the finding of factors that determines the banking industry profitableness. Porter s Five Forces Analysis is an appraisal that is used to understand the current competitory place and the future attraction of the industry, this is seen in figure. The menace of replacement is legion and includes companies that offer fiscal services such as insurance companies, Unit Trust Corporation, Island Finance, investing Bankss, recognition brotherhoods etc. Some non-financial establishments such as furniture shops and auto franchises are besides menaces since they offer recognition. These replacements offer similar service and merchandises without the regulative demands of Bankss, which makes their procedure faster than Bankss. These replacements have encroached on the banking industry profitableness, nevertheless, with the recent downswing of the economic system, clients have returned to Bankss since it is perceived to be more stable. In add-on, to invalidate the menace of replacements and prolong the industry s profitableness Bankss have besides formed confederations with other fiscal establishments. The bargaining power of clients is average but increasing as a consequence of a broad assortment of replacements, similarity of merchandises and lower client trueness ( due to logistics ) . However, it is counteracted by high shift costs caused by the clip and incommodiousness of reassigning histories to other fiscal establishments and a big figure of clients. It is perceived, nevertheless, that the advanced engineering and the increasing figure of replacements, have reduced shift costs, this is true to some extent, illustration retail sedimentations but in footings of loans, corporate sedimentations etc. the exchanging cost is high. The bargaining power of providers is besides medium and increasing. Although there are a big figure of providers for general resources, there are a little figure of providers for the critical resources of Bankss, for illustration, ABMs, system applications, money counter etc. which makes exchanging backbreaking and time-consuming. From the PEST analysis, it seen that the banking industry s market is more opened and there is a relaxation of demands. This consequences in the menace of new entrants being medium to high and is expected to escalate if there is farther dismantlement of barriers/requirement. Consequently, it is easier for a big foreign establishment to come in into the market, illustration, the acquisition of RBTT by RBC and the entry of Bank of Baroda, these establishment will with hold the necessary capital investings and trade name acknowledgment to make so. However, for a local establishment it is harder because of the high trade name edifice outgo and highly high capital investing. This menace is slightly counteracted by high issue barriers and high shift costs. The banking industry soon has a saturated market and one would happen that is hard to derive market portion to go profitable therefore, entrants are focused on a niche market section. Furthermore, these entrants are big plenty to run as loss leaders. The above four factors that form scheme, prostration into competition amongst bing rivals ( as seen in figure ) . The fact that the banking industry exhibits oligopolistic cooperation in order to maximise net income, lower cost and maintain position quo, is another index of adulthood. Examples of this type of cooperation are: Establishing a codification of behavior in which all Bankss must adhere when covering with clients Technological sharing of webs e.g. linx to ease ATM minutess. Offer of similar involvement rates and merchandises In add-on, Bankss have to organize strategic confederations in order to antagonize replacements to better the value system e.g. insurance companies and common financess. An analysis of the bing competitory competition is restricted to four Bankss. These rivals are identified utilizing Porter s strategic group analysis ( see figure ) . From figure, rivals in First Citizens market range operate in the same section and offer similar type merchandises. These Bankss collaborate to protect the profitableness of the industry, particularly in the country of involvement rates, client service quality and non-competitive procedures. The anticipation of the rival environment can be analysed utilizing Grant s Framework for rival analysis, this can be seen in figure. 4.3 The Industry Life Cycle From figure, it is seen that the banking industry is in its adulthood phase. This can be sustained over an extended period, in which market portion can merely be increased by pulling the rivals clients. In add-on, a scheme in the mature banking industry, is the inclination of Bankss to consolidate e.g. with insurance companies, security companies ; get or unify e.g. the acquisition of RBTT by RBC and CMMB by FC. However, Bankss fight to keep its market portion by making high issue barriers for its clients. Recently, clients are highly sensitive to involvement rates, hence in an attempt to retain its clients, one would happen that Bankss in the same market section ( figure ) would hold similar involvement rates. For illustration, if Central Bank decrease the modesty demand all Bankss will diminish its rate to fit each other. In a phase of adulthood, there are countries in which it is more economical to join forces than to vie, this brings approximately greater efficiency at a lower cost e.g. Linx, Transunion and Trinidad and Tobago Interbanking payment system ( TTIPS ) . 4.4 Key Success Factors In order to be successful in the banking industry there are some cardinal factors. These include: Fiscal stableness Customer assurance Customer trust Effective Regulatory Systems Relevant Products and Services Low-cost pricing Competition which breeds greater invention and by extension efficiency 5.0 THE DYNAMICS OF THE INTERNAL ENVIRONMENT 5.1 Resource Analysis Fiscal Capital Human Capital FC Bank has about 1300 staff members and a well-experienced and knowing senior staff. However, sequence and service quality is a concern because of the high turnover of junior staff. In recent times, staff members are no longer interested in a occupation for life, therefore the bank is revising its procedures to integrate transeunt staffing agreement. In add-on, the bank has developed a direction trainee, corporate resourcing and mentoring programmes for school and university alumnuss. Leadership competences, 360 degree feedback and calling development programmes are besides implemented for junior staff and direction. Customer Capital The bank has a big client base in surplus of 400,000 histories. Retail banking clients constitute the bulk of the client base. The effect of this is that it involves higher operating and fixed costs, in add-on, to accomplish economic systems of scale both market portion and size has to sufficient. Notwithstanding the sedimentation garnered from these clients, it represents low cost financess to the bank that are so used for loaning. Although client trueness by and large has improved, they are nevertheless flyaway and could alter base on simple involvement rate difference since they are sensitive to this ( as discussed in Porter s five forces ) . Recently, the bank has embarked on work to better its image and repute. Social Capital FC has intensified its relationship with society in attachment to the proverb of Corporate Social duty in a really important manner. This is besides in attachment to the codification of moralss established by the Bankers Association, in which First Citizens bank patrons events: Environmental: Citizens in Action to reconstruct the Environment ( CARE ) , which assists in the Restoration of the environment. In this respect, internal staff competition are held to widen community interaction and to increase societal and environmental consciousness ( this improves the visual aspect of the bank ) . Young person and Education: Bursaries to Tertiary Institution. The bank engages in developing school libraries and is a major patron in junior accomplishment. Sports: First Citizens Sport Foundation, which raise consciousness through clinics and athletics instruction seminars. It is the exclusive patron of the National Sports Foundation, which deals with athleticss instruction, seminars and acknowledgment of winners in the Hall of Fame and Annual Sports Woman/Man of the Year which honors all the winners in all athleticss. .u86ed0206fdfc8a3c2c4e0a86d41e5660 , .u86ed0206fdfc8a3c2c4e0a86d41e5660 .postImageUrl , .u86ed0206fdfc8a3c2c4e0a86d41e5660 .centered-text-area { min-height: 80px; position: relative; } .u86ed0206fdfc8a3c2c4e0a86d41e5660 , .u86ed0206fdfc8a3c2c4e0a86d41e5660:hover , .u86ed0206fdfc8a3c2c4e0a86d41e5660:visited , .u86ed0206fdfc8a3c2c4e0a86d41e5660:active { border:0!important; } .u86ed0206fdfc8a3c2c4e0a86d41e5660 .clearfix:after { content: ""; display: table; clear: both; } .u86ed0206fdfc8a3c2c4e0a86d41e5660 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u86ed0206fdfc8a3c2c4e0a86d41e5660:active , .u86ed0206fdfc8a3c2c4e0a86d41e5660:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u86ed0206fdfc8a3c2c4e0a86d41e5660 .centered-text-area { width: 100%; position: relative ; } .u86ed0206fdfc8a3c2c4e0a86d41e5660 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u86ed0206fdfc8a3c2c4e0a86d41e5660 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u86ed0206fdfc8a3c2c4e0a86d41e5660 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u86ed0206fdfc8a3c2c4e0a86d41e5660:hover .ctaButton { background-color: #34495E!important; } .u86ed0206fdfc8a3c2c4e0a86d41e5660 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u86ed0206fdfc8a3c2c4e0a86d41e5660 .u86ed0206fdfc8a3c2c4e0a86d41e5660-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u86ed0206fdfc8a3c2c4e0a86d41e5660:after { content: ""; display: block; clear: both; } READ: Native Son Analysis EssayCulture: The Bankss patrons programmes in all cultural/religious events such as, Divali Nagar, Eid-ul-Fitr, Tobago Heritage etc. Physical Capital The bank has 25 subdivisions strategically located across the state, with three in Tobago. In add-on, an surplus of 80 ATM supports these subdivisions, with a huge figure of these in off branch locations. Technology Capital FC bank has the taking border in on-line existent clip banking web and is the leader in Internet Banking engineering and communicating web. Its Ethernet and communicating web, which incorporates both voice and informations, besides contributes to the bank being considered as a Technology leader. In fact FC has won the South Trinidad Chamber of Commerce Technology Leadership on three occasions in the last five old ages, an award that has been designed for engineering companies. The bank s huge web of ATM and POS machinery provide important range to its merchandiser and clients likewise and is to the full networked on a local and internal graduated table. The bank has been able to leverage its engineering leading to heighten value for merchandiser and clients. This can be gleamed from the merchandiser e-banking which allows corporate and commercial clients to transact concern from their offices ( paying measures, wages, ACH etc. ) . The value of engineering capital is besides seen with the execution of nomadic POS, which is important for distributers and the service sector. 5.2 Value Added FC Bank s value concatenation is depicted in figure utilizing Porter s Value Chain analysis. The bank has concentrated chiefly on selling, gross revenues and services. The usage of engineering has been incorporated to accomplish a degree of service and convenience to supply value to the client. The cost to supply such value to the client is of import nevertheless, the hazard to functioning clients is merely every bit of import. The critical factors in this value system are the linkages between accomplishments of staff, hazard direction, information systems, flexible and antiphonal policies/procedures to add such value. Information engineering is FC bank s nucleus competence particularly since they are the leader in this country. FC uses the technological promotion to increase its value concatenation and to accomplish a higher degree of client service than its rivals. Owing to the extremely leveraged engineering at FC, the degree of efficiency, high evaluations by clients have been improved, although, the market portion has remained stable since the industry is in the mature phase ( industry life rhythm ) . The usage of engineering is besides the bank s typical capableness, since the bank uses its engineering e.g. nomadic POS and corporate cyberspace banking, to increase the value concatenation of its clients. Figure below depicted how elements of FC bank s outbound and selling logistics becomes incorporated into the clients e.g. eating houses and distributers inbound logistic of their value concatenation. Internet banking, nomadic POS etc. Telebanking Etc. First Citizens Bank Value Chain Distributors Value Chain Restaurants Value concatenation Figure demoing the connectivity between First Citizens Value Chain and that of its Customers 5.3 McKinsey s 7S 5.3.1 Structure FC bank presently has a bureaucratic ( top-down ) that does non aid in speedy decision-making, which is important. Structure is the key to effectual executing of scheme. Is the construction does non back up scheme in footings of VMOST so the scheme execution will be hard. Despite its best attempts to alter, the bank construction is still excessively bureaucratic. The bank has to decentralize both vertically along different degrees of the organizational hierarchy and horizontally amongst directors and non-managers based on expertness and experience. In making so, authorization and duty will stay with those in the place, who possesses the necessary accomplishments to implement determinations, ideally front line staff. Presently, the credit-decision devising procedure is based on limited degree authorization by staff and the bureaucratic stairway can impede the effectivity in the lending/investment procedure. Simiarly, as a consequence of Government ordinance ( Central Bank ordinances ) and the general hazard inauspicious civilization of the bank, several to-down controls exist impeding the smooth processing of intricate dealing. If centre deputing decision-making authorization is given to frontline staff e.g. senior direction increasing mandate bounds on loans granted by line directors, the procedures in the bank will more efficient and less cl ip consuming. 5.3.2 Systems FC bank is a performance-driven acquisition administration, hence all of its systems should be taken into consideration if farther development is to happen. The three indispensable countries are: Human resource systems Wagess are based on SMART rule and pre-determined administration and single marks. However, the assessments are based on single and team public presentation and are done on a quarterly footing to place countries foe preparation and development. In add-on, the public presentation is besides measured by balance scorecard with spreads identified to re-prioritise attempts. Human resource records nevertheless, are non automated via a modern HRIS system and hence speedy and effectual decision-making is negatively affected. To further rush the decision-making the top-down system needs to be changed to a bottom-up system that integrates the person and squad public presentation, preparation and development. Organizational public presentation systems The bank has two theoretical accounts to measure its public presentation: The strategic planning theoretical account This evolves from the vision and mission of the bank and long-run schemes are developed for three old ages on a rolled footing. On an one-year footing schemes are reviewed analysed and adjusted as necessary. Three exercisings inform the concern planning procedure for the resulting twelvemonth and supply cardinal inputs into budgetary allotment which support the executing of the said schemes. Information systems The bank s information system is extremely synergistic, accurate, accessible and easy interrogable. In malice of the high usage of engineering client service staff has non encompass the usage of engineering to present value added. There is high usage of the bank s office direction system for communicating e.g. electronic mail and calendaring. However, directors and staff have non grasped the chance to utilize these systems for work flow efficiency e.g. loan inception systems and electronic loan application and recognition mandate. 5.3.3 Style Manner is influences in portion by construction. The top-down construction of administration has bred an elitist atmosphere with different beds of direction holding changing grades of power and influence. Directors do non look to exhibit a supportive function and communicating is largely top down to their support staff. In add-on, feedback to employees on public presentation of administration is done via newssheets, squad briefing and staff meetings. By and large, the direction manner is non of a participative nature and this can hold negative effects on employees engagement and satisfaction. There is an over copiousness of processs within the system which leads to an excessive sum of clip and attempt spent on administrative procedures therefore cut downing the rhythm clip for client service. Staff Staff development utilises: Employee aid programme ( EAP ) 360 grade for developmental intents In add-on, the tools used in developing staff are: Sequence planning Individual development planning Leadership competences model there are seven countries the bank utilise and develop staff ; they are client focal point, teamwork, invention, enterprise ( acquiring consequences ) , unity, entrepreneurship and gross revenues and selling. These are to develop staff in order to develop leading accomplishments but FC has to make the construction, systems etc. to actuate and promote employees to develop along these lines. Skills Multiple skilled employees are indispensable in a acquisition and public presentation driven administration. The bank is going preponderantly a gross revenues driven administration, with hazard direction and decision-making being critical to its success in the country. Training in developmental programmes in selling, gross revenues, dialogue and difference declaration are provided by the bank to farther develop accomplishments in these countries. However, the construction of the bank is a barrier to the proper airing of accomplishments because of compartmentalization of information. The bank nevertheless, has been a leader in the development of single staff and disbursal important amounts on both internal and external preparation. The instruction aid program provides bank sponsored third instruction up to and including the Masterss level for measure uping staff, this installation has benefitted legion staff members. Scheme Using Johnson and Scholes Development Strategies model the way used by FC bank should be maintained. The bank has focus on placing market sections and adopted a market incursion and developmental and variegation schemes. These schemes should be suited, acceptable and executable to all stakeholders, employees and clients and should be based the bank s outstanding client service, invention and its nucleus competence of engineering. However, the bank s scheme of taking client satisfaction through invention has seen it derive value from its leading place from electronic banking including cyberspace, POS and nomadic banking. Shared Value The meeting of three failed fiscal establishment formed FC Bank, and its phoenix-like Resurrection to a marked place within the banking industry fraternity in the part and awards won, is a beginning of pride for the administration. 6.0 S.W.O.T ANALYSIS Figure shows the SWOT analysis for FC Bank, based on this and for sustainability of competitory advantage, the undermentioned factors are important: Investings for farther development of engineering since it is ever-evolving particularly at the strategic and tactical degree to keep FC as the leader Quick response clip to clients petition to synchronize with industry norms Strong image/brand and public presentation goaded civilization High grade of flexibleness and reactivity Improve decision-making capablenesss of front line staff and sequence planning

Kenyas Rose Imports to Holland Essays

Kenyas Rose Imports to Holland Essays Kenyas Rose Imports to Holland Essay Kenyas Rose Imports to Holland Essay 2008). The Future Prospects and Trends of the Flower Industry in Kenya The new trend shows the cost of production is increasing while the overall consumption is declining. Therefore, there is need to shift more attention to consumption oriented approaches. Quality, cost and diversity of products will be determinants for survival in the industry. Consumer demand for fair traded flowers shall take a front stage. Good production practices, competitive advantages and strategic behavior will determine the sustainability of the industry. Modern distribution will dominate the market with new business drivers. Different product concepts and positioning (flowers and plants arrangements) that will satisfy the increasing consumer demand for variation in personal gifts and taste will account for a significant percentage of the turnover of the flower market. Kenya will continue to dominate production in Africa because of the favorable investment policy for the flower industry, the production conditions and the improved infrastructure. It will remain a net exporter of flower products. Like China, it should focus on research so as to improve on its local varieties, strive to develop the home market, be innovative and become a self-bearing industry. In conclusion, Kenya is a very promising country to diversify the Input supply portion of the value chain. (Karabo et. Al, 2011) Background on The Netherlands (Holland) Background and Market Information Holland is located in Europe. Germany lies on Holland’s eastern border and Belgium on Holland’s southern border. On the western and northern borders, Holland lies next to the North Sea. Holland’s total land area is 41,848 km? , of which 8478 km? are under flower and foliage crops. Holland’s land area has a water mass of 18. 41%. Holland has an estimated population of 16,491,852. The average growth rate is 0. 436%. Holland’s fertility rate is below the 2. 1 –rate required to replace natural population. Life expectancy is high; 79 for woman and 78 for men. Senior citizens are seen as a potential market group, as their children left the house and the mortgage are paid off. Thus leaving this target market group with more spending money for luxuries. The opposite of this again, shows an increase of one and two person households, creating an increase in the household market. The most spoken language is Dutch, with recognized regional languages is Low Saxon, Limburgish, Frisian, English and Papiamento. Holland declared their independence on 26 July 1581, and their independence was recognized on 30 January 1648. Holland is ruled by a Parliamentary democracy under a Constitutional Monarch. The current Monarch is Queen Beatrix. Mark Rutte from the VVD is the current Prime Minister. Holland has been playing a key role in the European economy since the 16th century. Shipping, fishing, trade and banking have been leading sectors in the Dutch economy. Holland is one of the worlds 10 leading exporting countries, and has the 16th largest economy in the world. Inflation is 1. 3% and unemployment is 4. 0%. This unemployment percentage is the lowest of all the European Union member states. Holland has a relatively low GINI coefficient of 0. 326. Amsterdam is the 5th busiest tourist destination in Europe, and gets more than 4. 2  million international visitors per year. The Aalsmeer flowers uction is the largest flower market in the world, and is run by FloraHolland. The current sales of cut flowers in Holland are â‚ ¬893 Million. The consumer market is the most important offset market in Holland, since they consume two thirds of these sales. Research had shown that Holland consumers bought fewer flowers in 2005 than in 2000. The ongoing economic crisis in Holland h ad a major effect on consumer spending. Consumers blamed it on less spending money and the high prices of flowers. Quality is one of the most important criteria for buying flowers, but the cost price has become a more important priority, especially to woman. Holland consumers also look at the perishable effect of flowers. About 60% of cut flower sales are spent on flower gift bouquets. This percentage is comparable to France. About 30% of this 60% are spent on birthday bouquets. Mother’s day is also a special day with the highest percentage of sales. In 2004 sales had grown to 26% from the 20% in 2002. Valentine’s Day has also grown the past two years, respectively to 10% and 11%. Flower Industry Background The world’s two biggest flower auctions are based in Aalsmeer (VBA) and in Naaldwijk/ Bleiswijk (BVH). On average 30 million flowers are traded in 100 000 transactions annually. During 1996 each of these markets had an annual turnover of 30 Billion Dollars. These flowers originate from countries such as Holland, Israel, Kenya and Zimbabwe. The Dutch flower auctions play a crucial role in Holland’s leadership in this type of industry. Holland provides efficient centres for price discovery and transactions between buyers and sellers. These auctions use the â€Å"Dutch auction† as the means for price discovery. These auction markets are established as cooperatives by Dutch growers. The Dutch Flower Auction Concept The Dutch auctions are characterized by using a computerized auction clock. The clock provides the buyers information regarding the producer, product, unit of currency, quality and minimum purchase quantity. Flowers are then transported through the auction room, and shown to all the prospective buyers. The clock hand then starts at a high price, which is predetermined by the auctioneer, and drops until a buyer stops the clock by pushing a button. The auctioneer will then communicate with the buyer regarding the quantity he/she would like to buy. After the transaction, the clock is reset or the flowers which are left on the floor, and the process begins all over again. Sometimes a new minimum quantity is set, until all the flowers are sold. The Dutch flower auction is an exceptionally efficient auctioning system, as it can handle a deal every four seconds. Caused by the increased imports, the VBA and BVH were close to its limits in terms of capacity, complexity and expansion room. One of the answers to these limitations was the introduction of new electronic auctioning systems. Four electronic auctioning systems were introduced to the markets. * The Vidifleur Auction (VA) The Sample Based Auction (SBA) * The Tele Flower Auction (TFA) – â€Å"Buyers have to trust the quality blindfold† * The Buying at Distance Auction (BADA) Unfortunately the VA and SBA failed, but the TFA and BADA deemed great successes. The VA was terminated in late 1991, as trading was difficult through screen-based trading. The SBA was discontinued the late 1995, due to decreased numbers of transactions per hour, and the negative effect on the functioning of growers, the auction house and buyers. The TFA The TFA was created by East Africa Flowers (EAF) after the Dutch flower auctions imposed import restrictions. During the traditional import season 30% of the EAF’s flowers could not be traded. During the summer season 100% of EAF’s flowers could not be traded. In December 1994 the EAF announced the creation of the Tele Flower Auction (TFA). On 24 March 1005 TFA was initiated with 70 buyers and 2 growers. A few months later the EAF decided that growers from other countries were also allowed to use the TFA. These were countries such as Colombia, Spain, India, France and Israel. After the TFA had been in use for one year the network increased to 35 growers and 150 buyers. Buyers bid via their personal computer (PC). Their PC’s are connected to a fully computerized auction clock. Flowers are not visible to buyers, as they are not present in the auction room. Each buyer can earmark interesting lots before the auction starts. The system will then warn the buyers before each of his earmarked lots are up for sale. The system provides information regarding the producer, product, unit of currency, quality, and minimum quantity for purchase. For each lot of flowers, 2 images are presented on the PC. The auction system remains the same: Dutch Flower Auction. The buyers see the Dutch auction clock on the PC screen. When the buyer needs to buy, he will stop the clock, the auctioneer will then communicate over an open telephone connection about the quantity of flowers he would like to purchase. The clock is then reset, and the process is repeated, until the lot of flowers is sold. All flower producers send the flowers to EAF, which is situated in Amstelveen. Distribution of the sold flowers is done by transporters of EAF. All transport costs are paid by EAF. The whole TFA process in EAF is done with considerable speed, as some deliveries are made to buyers within half an hour after a sale. 30% of TFA’s buyers regularly inspect the premises and flowers. Quality control is done by TFA’s inspectors at the producers, at the distribution pint in Nairobi and at the TFA in Amstelveen. The flower prices on average were not significantly higher or lower than the traditional Dutch flower auctions. TFA expected a 50 million dollar turnover for the growing season of 1995/1996. Compared to the seven Dutch flower auction markets, TFA ranks forth. On 14 January 2010 the Mavuno Group (Kenya) and the flower auction FloraHolland announced that all activities of TFA would be integrated into FloraHolland. This means a broader sales network to all TFA suppliers. The Mavuno Group in Kenya consists of the Oserian Development Company (250 ha farm) in Naivasha, Bloom (flower exporter/ retail supplier in Holland), World Flowers (Retail supplier in the UK), Fast Track Flowers (Retail supplier in the UK, grown product), East African Flowers (EAF, clearing in Holland) and Airflo (freight forwarding ) in Nairobi. By integrating the Mavuno group and TFA with FloraHolland all their producers were able to access to the virtual clock system, alternative digital selling systems and the direct sales of FloraHolland. For the TFA suppliers and buyers this meant increased efficiency in the logistical chain. The BADA The Buying at Distance Auction (BADA) was started by the Flower Auction Holland in 1996. The concept uses the idea that buyers can connect via a modem to several auction clocks in auction rooms. This project started off with 16 buyers and six clocks. By 1997, 60 buyers were on the waiting list. Lower travel costs were reported for this auctioning system. Some Lessons the Auctioneers Learned 1. The increased use of information technology and the separation of informational and physical trading will permit more varied forms of trading, customized to different buyers’ requirements. 2. Conformance of the actual and perceived quality of the product, logistical performance and IT performance result in an increased trust factor and to a successful electronic auction system. 3. New entrants can quickly build competitive advantage with a modern auction system model. FloraHolland Since the 1950’s Holland has been at the centre of the world flower trade. It has a functional trade system to facilitate the movement of cut flowers. Flower producers from around the world assemble at the famous flower actions. These auctions offer at a central marketplace for the buying and selling of floricultural products. Flowers are imported from various parts of the world, in order to create the largest selection possible. FloraHolland is a modern business with six auction centres, a nationally-operating intermediary organization, and an import department. FloraHolland is a primary cooperative: it is owned by its 6000 members. There is no legal separation between the cooperative and the business. This joining of forces is unique in the world. 39 Clocks are operated daily at the FloraHolland centres. This means 125 000 auction transactions every day, and 12 Billion cut flowers and over half a million plants a year. FloraHolland uses Image Auctioning. This means that flowers and plants are no longer taken into the auction rooms; but stays in the cold stores. Instead, photographs of the flowers are displayed in the auction rooms, from which the buyers can purchase. The advantage of this system is that the flowers and plants can be taken directly from the cold stores to the customer after the sale. The auctioning process continually needs to be renewed and improved. Thus, at the Aalsmeer location, all the traditional clocks have been replaced by projected clocks. These clocks have been redesigned to offer more information to buyers. Now, buyers are assisted with producer logos and photographs to encourage their purchasing decisions. FloraHolland Connect offers customized services to all buyers and their retail buyers. Their intermediaries are able to assist with targeted National and International product sourcing. These FloraHolland Connect packages include negotiation support, proper registration of all agreements between producers and buyers and comprehensible logistic agreements. They also offer assistance with resolving any disputes between producers and buyers. FloraHolland Connect is also an innovative associate for customers to offer commercial support and to contribute creative ideas. Figure 1 Top 10 Cut Flowers Auction Turnover in Euros 1 000 000 Our Current Situation De Roos Florist – Amsterdam Sloten We have a 250m? shop at 8 Ditsloot Laan in Sloten, Amsterdam. We are across the highway from Schipol Airport in Amsterdam and 15 kilometers from Aalsmeer Flower Market. Our marketing consists of a web dress and advertisements in our local newspaper, the Amsterdam News. We supply flowers and gifts for all occasions, specializing in flowers, potted plants and foliage plants. We offer a wide choice of bouquets, wines, champagnes, bears, chocolates and balloons. Orders are easily processed on our website, as customers only need to register once with all their information, and then on their second and later purchases only need to log in. Purchasing methods is possible by cash transfers, iDeal, Visa, Mastercard and American express. For a delivery in Amsterdam, same day deliveries are possible if the order was placed before 12pm. For the rest of Holland, deliveries will be made the day after the order was placed. A delivery fee of â‚ ¬8 will be charged for deliveries outside of Amsterdam. Currently we are daily buying flowers from FloraHolland at the Aalsmeer Flower Market. We have skilled employees who repack the flowers and create the bouquets. Supply Chain Diversification Definition: Supply chain diversification Supply chain diversification is a manufacturing business terminology used to describe the act of increasing choices for when to order what supplies from whom to bring products to the market. In short, it describes the abundance and flexibility of the suppliers for a certain product. Supply chain diversification is not a simple method of making suppliers compete with each other for the best price. It is more about preparing ones supply chain to be flexible for any kind of problem that the market throws at you. Advantages of diversification More emphasis on value chain innovation Efforts to reinvent the industry value chain can have a fourfold payoff: Lower costs, better product or service quality, greater capability to turn out multiple or customized product variations (upgrades), and shorter design-to-market cycles. Growers can mechanize high-cost activities, re-design production practices to improve labor efficiency, build flexibility into the â€Å"assembly† process so that customized product versions can be easily produced, and increase use of advanced technology (robotics, computerized controls, and automated/guided vehicles. ) Suppliers of parts and components, input manufacturers, distributors, and buyers can collaborate on the use of internet technology and e-commerce techniques to streamline various value chain activities and implement cost-saving innovations. A stronger focus on cost reduction Stiffening price competition gives growers extra incentive to drive down unit costs. Company cost-reduction initiatives can cover a broad front. Some of the most frequently pursued options are pushing suppliers for better prices, implementing tighter supply chain management practices, cutting low-value activities out of the value chain, developing more economical product designs, streamline order processing and pulling, reengineering internal processes using e-commerce technology, and shifting to more economical distribution arrangements and systems (e. . racking systems). Increasing sales to present customers In a mature market, growing by taking customers away from rivals may not be as appealing as expanding sales to existing customers. Strategies to increase purchases by existing customers can involve providing complementary items and ancillary services, and finding more ways for customers to use the product. Developing deeper relationships with key buyers (through personal visits , customized mailings, etc. ) will more often than not pay big dividends. Building new or more flexible competition The stiffening pressures of competition in a maturing or already mature market can often be combated by strengthening the company’s resource base and competitive capabilities. This can mean adding new competencies or capabilities (by either making or buying them), deepening existing competencies to make them harder to imitate, or striving to make core competencies more adaptable to changing customer requirements and expectations. Disadvantages Perhaps the biggest strategic mistake a company can make as the floricultural industry matures is steering a middle course between low cost, differentiation, and focusing; blending efforts to achieve low cost with efforts to incorporate differentiating features and efforts to focus on a limited (niche or cache) target market. Such strategic compromises typically result in a firm ending up stuck in the middle, with a fuzzy strategy, too little commitment to winning a competitive advantage, an average image with buyers, and little chance of springing into the leading ranks of the industry. Other strategic pitfalls include being slow to adapt existing competencies and capabilities to defend against stiffening competitive pressures, concentrating more on protecting short-term profitability than on building or maintaining long-term competitive position, waiting too long to respond to price cutting by rivals, over-expanding in the face of slowing growth, overspending on advertising and sales promotion efforts in a losing effort to combat the growth slowdown, and failing to pursue cost reductions and/or production efficiencies soon enough or aggressively enough. Supply Chain Decisions Supply chain management decisions are classified into two broad categories strategic and operational. As the term implies, strategic decisions are made typically over a longer time horizon. These are closely linked to the corporate strategy, and guide supply chain policies from a design perspective. On the other hand, operational decisions are short term, and focus on activities over a day-to-day basis. The effort in these types of decisions is to effectively and efficiently manage the product flow in the strategically planned supply chain. There are four major ecision areas in supply chain management: 1) location, 2) production, 3) inventory, and 4) transportation (distribution), and there are both strategic and operational elements in each of these decision areas. 1. Location Decisions: The geographic placement of production facilities, stocking points, and sourcing points is the natural first step in creating a supply chain. The location of facilities invol ves a commitment of resources to a long-term plan. Once the size, number, and location of these are determined, so are the possible paths by which the product flows through to the final customer. These decisions are of great significance to a firm since they represent the basic strategy for accessing customer markets, and will have a considerable impact on revenue, cost, and level of service. These decisions should be determined by an optimization routine that considers production costs, taxes, duties and duty drawback, tariffs, local content, distribution costs, production limitations, etc. Although location decisions are primarily strategic, they also have implications on an operational level. 2. Production Decisions A. The strategic decisions include what products to produce, and which plants to produce them in, allocation of suppliers to plants, plants to DCs, and DCs to customer markets. As before, these decisions have a big impact on the revenues, costs and customer service levels of the firm. These decisions assume the existence of the facilities, but determine the exact path(s) through which a product flows to and from these facilities. Another critical issue is the capacity of the manufacturing facilitiesand this largely depends the degree of vertical integration within the firm. Operational decisions focus on detailed production scheduling. These decisions include the construction of the master production schedules, scheduling production on machines, and equipment maintenance. Other considerations include workload balancing, and quality control measures at a production facility. * Increase production of summer flowers and lilies * Increasing scale of production of Roses and deliver to supermarkets and other mass retail chains B. Market channels in production decisions * Value-oriented customers Value in terms of prices has a significant effect on flower and plant expenditures and eventually plays an important role in explaining part of the trends in marketing these products. For example, the flats in the bedding and garden segment are assumed to be cheaper flower products compared to the others. Therefore, they are increasingly available in mass merchandise stores. People with low income who tend to buy these flowers are attracted to these low-price super centers. Value segmentation appears to be the most important market driver in selling De Roos flowers. Value will play an important role in raising sales from De Roos florist by introducing cheaper bedding plant cultivars and make large-volume sales through mass merchandise stores and supermarkets. Price will play a selective role in raising sales from potted flowering plants, foliages and cut flowers. With the increasing demand for large containers that have high-quality combinations, roses would continue to be expensive for value-oriented consumers. * Convenience Convenience will have an important role in raising sales from cut flowers and potted flowering plants. The indulgence market segment also plays a moderately important role in selling Roses, and other plant products. These market segments will provide broad opportunities for cut flower products that are mainly used as gift items, especially during calendar holidays and for special occasions. Cut flowers and potted flowering plants also fit into the coordinated and seasonal fashion trend and mostly they are a key element in indoor designs and decorations. As foliage plants continue to be widely used for interior decorations, the fashion and design market segment would also play a significant role in selling these plants. Convenience is becoming increasingly important for consumers when buying different flower and plant products. An increasing number of consumers are busy and perceive that they have less time for feeding and watering plants. Or some consumers want to buy plants and flowers that do not take weeks and months to mature. Others want to buy them in convenient containers and pots or they want products that are easily portable from one place to the other. Convenience is also one of the key factors in selling De Roos flower products. In particular, convenience would have an important role in raising sales from ut flowers and potted flowering plants. Convenience-oriented consumers will not be attracted to some of the bedding and garden plants, particularly the flats. Because these consumers do not have the time to continuously water and feed plants and flowers. They rather look for larger near-mature potted flowering plants or cut flowers. Large container and pot innovations that make plant ha ndling and growing easier or packaging innovations that improve the outside look of the container maintaining and improving plant quality would help to increase sales in this market segment. Cut flowers are coming well prepared and ready for use in arrangements, boutiques or consumers can buy them in single stems and they are easily transportable products. * Indulgence Indulgence considers a broad array of flower and plant attributes designed to meet consumers’ desires, as opposed to their needs. In this market segment, the consumers have unique attachment to the products, and they are buying not the item but the experience expressed in some ways. These consumers will buy the product because they might have connection to the products since childhood, they may like gardening and working with the plants, etc. In this group, there are also luxury or impulse buyers who pursue their intense emotion in purchasing flowers and plants. Holidays and special occasions are other aspects of indulgence that influence the market for flowers and plants. Cut flowers are the leading floral products that are used as gift items, especially during calendar holidays and for special occasions. They are also becoming increasingly appealing to the impulse purchaser. Therefore, the indulgence market segment will provide broad product development opportunities for De Roos florist. In the indulgence market segment, foliage plant will benefit from different consumer groups that purchase these plants for different purposes. Some consumers may want to have these plants, simply because they like them from experience or they know the performances of the plant from previous years. 3. Inventory Decisions These refer to means by which inventories are managed. Inventories exist at every stage of the supply chain as either raw material, semi-finished or finished goods. They can also be in-process between locations. Their primary urpose is to buffer against any uncertainty that might exist in the supply chain. Since holding of inventories can cost anywhere between 20 to 40 percent of their value, their efficient management is critical in supply chain operations. It is strategic in the sense that top management sets goals. However, most researchers have approached the management of inventory from an operational perspective. These include deployment strategies (push versus pull), control policies the determination of the optimal levels of order quantities and reorder points, and setting safety stock levels, at each stocking location. These levels are critical, since they are primary determinants of customer service levels. 4. Transportation Decisions The mode choice aspects of these decisions are the more strategic ones. These are closely linked to the inventory decisions, since the best choice of mode is often found by trading-off the cost of using the particular mode of transport with the indirect cost of inventory associated with that mode. While air shipments may be fast, reliable, and warrant lesser safety stocks, they are expensive. Meanwhile shipping by sea or rail may be much cheaper, but they necessitate holding relatively large amounts of inventory to buffer against the inherent uncertainty associated with them. Therefore customer service levels and geographic location play vital roles in such decisions. Since transportation is more than 30 percent of the logistics costs, operating efficiently makes good economic sense. Shipment sizes (consolidated bulk shipments versus Lot-for-Lot), routing and scheduling of equipment are key in effective management of the firms transport strategy. Kenya’s Cut Flower Cluster Value Chain Growers Growers grow flowers, suppliers procure them, they then sell these flowers to the wholesalers or retailers before the flowers finally reach consumers. This sounds like a simple value chain, except that the players involved come from all over the world. The vast majority of flowers are grown in Europe, Africa, Asia and South America and the consumer base comprises of Western Europe along with North America and Japan. However, despite this fact, the biggest trade center is the Netherlands. The world cut flower trade is characterized by a high degree of concentration by sources. Germany is the main market for imports, and the Netherlands the worlds leading exporter. Exports from the Netherlands to Germany are a principal component of the world cut flower trade; they make a significant part of the intra EU trade, which itself accounts for a large part of the world trade. In the Americas, Colombia is the major supplier to the United States. Japan receives its supplies from a more diversified base, with Taiwan, New Zealand and Europe being the most important ones. Since the 1950? s Netherlands has been at the center of the world flower trade. It has a good and functional trade system to facilitate the movement of cut flowers, which form a majority of flowers which are traded. Flower growers from all over the world assemble at the famed flower auctions to find suitable buyers for their produce. These flower auctions offer a central marketplace for buying and selling of floricultural products with good facilities for growers and buyers and effective logistics. Flowers are imported from various countries in order to create the largest possible assortment of flowers. This allows the industry to overcome the handicap of wholesalers not having the opportunity to import directly out of these countries. Roses Roses need labour-intensive watering, pruning and treating before they can be clipped and flown daily to buyers in Amsterdam and London. The best are sold through (Dutch) auctions to florists; the less good end up in European supermarkets. Kenya emerged as a flower power when Israel scaled down its own industry. It has since lost business to neighbouring Ethiopia, which offers tax breaks and better security, but Naivashas perfect intensity of sunlight and days of near-constant length should keep it on top. In any case, the owners are stoical. Figure 2 EU Consumption of Cut Flowers and Foliage Inventory Control Inventory is the stored accumulation of any item which can be used in a process; usually applies to material resources but may also be used for inventories of information. This can include: raw materials, finished goods, and work – in – process. Operations Management; 6th Edition; Slack, Chambers, Johnston) As a retailer / wholesaler / distributor, we have decided to follow the ‘Single – Period Model’ for stock inventory. This model is used to handle ordering of perishables and items that have a limited shelf life. Currently as a retailer, we function with the following Inventory which is ordered, distributed, processed and kept on site: * Cut flowers * Ex. Roses, carnations, chrysanthemums, orchids * supply flowers to wholesale florists across Netherlands and Europe * Potted flowering plants * Ex. Poinsettias, chrysanthemums, Easter lilies, African violets * Pot and plant shipped to market * Foliage plants * Ex. Philodendrons, dieffenbachia’s, figs, scheffleras, dracaenas * Potted plants to be grown and sold for their leaves instead of their flowers (houseplants) * Flower Themes: * By Occasion Birthdays, anniversary, sympathy * By Sentiment Congratulations, Romantic occasions, thank you, get well soon * By variety Roses, tulips, plants and orchids Inventory Rules Rules which we will follow in order to optimise our Inventory Decision making will include: 1) Simplistic inventory policies work well. Using the ABCD inventory policies or simple weeks-of supply rules frequently get 15-30% more inventory than needed and lower service levels. 2) Holding all items at all levels in our finished goods network will give us the highest service levels. Companies with multiple tiers of finished goods distribution frequently hold wrongs amount of inventory in wrong locations and suffer out of stocks despite high inventory investments. 3) It’s fine for each location or tier in the supply chain to set its own service level targets and replenishment planning frequencies. The lack of synchronized inventory policies across manufacturing stages and distribution tiers builds up unneeded inventory across the supply chain. 4) Inventory minimization should is our goal. 5) Using purchase orders or release notices for replenishment is efficient. A growing number of companies that use cut purchase orders or release notices for their suppliers are discovering it is more effective to ask suppliers to take responsibility for maintaining inventory between min/max levels. These misconceptions around inventory impact both top line and bottom line revenue. In order to improve our inventory turnover, we have followed the following guidelines: * Keeping our purchases in small batches to keep items fresh, reduce maintenance labour, and maximize the use of our selling space * Not filling prime retail space with boring inventory items * Large volume shipments may have a lower initial unit cost but when considering the additional floor time to maintain the volume and take the risk of not selling all items before the stock wilts might not be worth the savings * To fill the empty spaces, we can display already made arrangements which can be used for special occasions * Track our profitability by categorising the perishability of: * Cut flowers / Potted Flowering plants / Foliage Plants * Cut flowers and blooming plants typically have greater perishability that demands closer accounting and greater mark-ups. * Use green plants as the safest inventory back-up for funerals and holidays. * Keeping a reasonable mark-up because of the differing deg rees of perishability and maintenance one should use a different mark-up factor for the different categories of inventory. However, because of the high perishability potential, leftovers, and cooler expense, our inventory needs the highest mark-up. * Maintaining a high standard of quality as this: * Reduces spoilage of flowers * Sells easier and faster * Easier to maintain. * Less risk of problems * Commands a greater mark-up * Ability to Upgrade into special containers * Ability to add an array of items including figurines, trellis, balloons, twigs * Design into a unique arrangement * Have something unusual. Types of inventory There are currently 5 types of inventory. These include: 1. Buffer 2. Cycle 3. De-coupling 4. Anticipation 5. Pipeline Our current day to day inventory decisions are based on: 1. How much to order? In order to determine the amount of inventory to order we consider the difference between the costs associated with holding stock and compare it against the costs associated with placing an order. * We use a well known formula to assist in the abovementioned calculations is the Economic Order Quantity (EOQ) formula. * By using different stock behaviour assumptions, the EOQ formula can be adapted to different types of inventory profile. * Inventory costs directly associated with the size of the order include: * cost of placing the order * price discount costs * Stock out costs * Working capital costs * Storage costs * Obsolescence costs * Operating inefficiency costs 2. When to order? * This depends partly on the uncertainty of demand. When the order arrives, a certain level of average safety stock is retained. This is how orders are usually timed. * The level of safety stock is influenced by the viability of the lead time usage distribution which is made up of: * demand * lead time of supply * Inventory levels should be continuously reviewed when using the re-order level as a trigger for placing replenishment orders 3. How to control inventory * Computer based information systems are used to manage inventory. These systems have the following functions: * updating stock records * generation of orders * generation of inventory status reports and demand forecasts Supply Chain for Import The figure below describes the domestic part of the export supply chain. The largest flower companies have vertically integrated most of (and in at least one case, all of) the functions described above. However, the social and environmental standards used in the flower industry do not apply to parts of the supply chain beyond the â€Å"Cold room†. When the stock arrives on the aircraft, the aircraft needs to travel at a constant cool to cold temperature to the final destination. In order to maintain the freshness of the inventory throughout the supply chain, the following needs to be considered when transporting and storing: * Inventory, flowers and plants, need to be stored in appropriate packaging to enable it to have as little human handling as possible. Cut flowers and potted plants need to be kept and maintained at cool temperatures throughout the end to end supply chain * Distributors need to drive improvements in flower and plant temperature management during distribution (demand-pull) * Day-ahead flower and plant ordering by growers is requ ired to ensure that adequate time is available to cool the products prior to transportation * Transportation should offer precooling services to ensure that all flowers and plants are transported within the desired cool temperature * Investing in equipment needed to ensure adequate initial cooling and to prevent breaks in the supply chain end to end Source: nri. org/projects/NRET/2607. pdf Export and Import Regulations and Taxes Duties and VAT It is vital to ensure that you pay the correct duties and VAT on all products that you import. There are number of different excise duties (e. g. Alcohol or Tobacco duty) that apply to goods, and you need to be sure that you are paying the correct rates. As small businesses may not be VAT registered, the rules will vary depending on the product, you should be certain to clarify the duty or VAT you will need to pay, and how this will change if you register for VAT in the near future. Depending on the amount you import and export, some business will be entitled to claim back some of the duty or VAT payments that you make. A number of businesses are also entitled to delay payment of duties (mainly for goods imported from outside the EU). Customs Entries If you are importing from outside of the EU or from special EU territories (including the Canary Islands and the Channel Islands), then the goods you bring in will almost always need to be entered and declared to Customs and Excise as they arrive (Either yourself or by an approved agent). If you are importing or exporting from within the EU, then a customs declaration is not usually necessary. Although if you are VAT registered, and your EU imports or exports exceed a set amount (currently ? 233,000 a year) you will need to fill in a supplementary declaration form each month. Payment Currency It is important to remember that when you import or export goods, you may be required to pay (or accept payment) in a number of currencies. You need to arrange with the supplier or buyer in advance who will bear the costs of exchanging the currency (e. g. From Euros to Pounds); this can affect the costs a considerable amount and may need some negotiation to find the fairest option. In most cases the buyer (importer) will pay the currency conversion charges, although it now a lot easier for payment to be converted as it enters the bank account (particularly with Euro payments). Open Account (OA) This type of payment is preferable to small businesses when importing, helping you keep positive cash flow. It is however much more preferable to have payment in advance when exporting. Documentary Letter of Credit (LC) This is where the customer’s bank provides a ‘letter of credit’, which promises to pay the supplier as long as the terms are met (and the bank has the money to pay) (ILC). There s also a ‘confirmed irrevocable letter of credit’ (CILC). This is a promise by a UK (or a large world bank) to pay the supplier, and is even more secure than an ordinary letter of credit. A letter of credit is the most secure way to be paid, but you must be careful to ensure that all documents related to the sale are correct, as a serious mistake can make the letter of credit worthless. Terms of Delivery It is essential that all importing or exporting be covered by an effective set of delivery terms. In the event of a late or damaged delivery, the costs to the importer could be huge. Incoterms are a set of international standard definitions that allow terms to be set without the risk of confusion, even when translated into different languages Incoterms help to set out fair compensation rules in the event of a late, damaged, or missing delivery. They can also set out fair payment details once a complete delivery has been made. Import Duties All merchandise coming into the Netherlands must clear Customs and is subject to customs duty assessment unless the goods are duty or tax exempt by law. Customs duties are, generally, an ad valorem rate (a percentage), which is applied to the transaction value (EU Euro) of the imported goods based on the cost of the goods, insurance, and freight charges. A commercial shipment below 22 Euros: no duty and no VAT collected. * A commercial shipment between 22 Euros and 150 Euros: no duty but VAT is collected. * A commercial shipment over 150 Euros: duty and VAT are collected. Import Taxes On imports the tax is assessed on the CIF d uty-paid value at the port of entry in the Netherlands; if excise taxes or other charges (excluding VAT) are applicable, the amount levied also is included. The VAT rate is the same for both domestic and imported goods Import Regulations of the Netherlands on Plant Health Phytosanitary import requirements of the Netherlands are directly based on the plant health regime of the European Community and its Member States. The purpose of these requirements is to prevent the introduction and spread of (quarantine) pests and diseases within the European Union. Points of entry All points of entry of the Netherlands can be used for the import of plants or plant products for which a phytosanitary certificate is required. The following main points of entry are in use in the Netherlands: * The Airport of Amsterdam Schiphol * The Airport of Rotterdam * The Airport of Maastricht List of importers and Approved places of inspection Upon entry all regulated objects are subject to inspections by the Netherlands Plant Protection Service. Inspections are carried out at an approved place of inspection. In the Netherlands most of these inspections are carried out at the place of destination, such as a place of production, approved by the Netherlands Plant Protection Service, in line with Council Directive 2000/29/EC. Import Declaration Form (IDF) An IDF must be applied for and obtained from the Kenya Revenue Authority for any Commercial Importation. The Importer is responsible for applying for the IDF but may consult us for purposes of Customs Classifications which form the backbone of the information drawn from the Pro-Forma Invoice. The IDF Fee is 2. 75% of the CIF Value of the goods. A minimum payment of Ksh. 5000/= is payable for the IDF to be issued, while the difference if any, will be paid alongside the Import Taxes. Quality Inspection The Kenya Bureau of Standards has appointed two agents namely INTERTEK and SGS for the Pre export Verification of Conformity inspection of the commodities listed on the Guidelines referred bellow. These agents will issue to the Shipper/Supplier a Certificate of Conformity and the Test Results. An IDF will be required before any Inspection can be performed Customs Import Entry The following documents are required for Customs Import Entry Purposes 1. Original Commercial Invoice 2. Packing List 3. Original Bills of Lading – Two Original 4. Original Certificate of Conformity 5. Original Test Result/Report/Analysis 6. Original Certificate of Origin for Preferential Trade Area Partners e. g. COMESA. 7. Import Declaration Form and the Receipt 8. Insurance Debit Note 9. Importers Declaration(C52) Special Permits/Certificates Certain types of Importations are subject to control measures and therefore Permits must be obtained from the concerned authorities such as: * Department of Agriculture (KEPHIS) Plants Importations Permit * Fumigation Certificates The role of the exporters Exporters play an important role in the flower supply chain. They have to perform several functions, and if they are unable to, these functions act as barriers to entry. According to Dolan et al. (1999), exporters have to ensure consistency of quality, reliability of supply and the perseverance of the products. Therefore, they have to help manage the production and processing systems to ensure quality, install control mechanisms to ensure reliability of supply and monitor the use of chemicals to ensure perseverance. Exporters also have to make sure that post-harvest care is done properly so that the products have a longer shelf life. The retail sector demands flexibility and reliability in the supply, and so logistics and transport are two of the most important aspects in this chain (the products only have a short period in which they can be marketed). The exporters, so as to be able to react quickly to orders, have installed a Just-in-Time (JlT) management system. This system reduces time between harvesting, packing and delivery. Efficient logistics depend on the quick exchange of information and knowledge between the participants in the global competitive chain. Integrating the participants in the chain electronically could accomplish this. Thus, the flow of the products throughout the chain could be traced. Exporters have to secure air cargo space to be able to transport the products rapidly in a reliable manner. Large exporters are able to pre-book airfreight services because they have the resources and volumes required. Small exporters, however, have to compete with passengers for air space, which can only be arranged just before departure. Exporters need to constantly develop new products and diversify the existing ones. By working closely with the importers, this could be achieved. Once they develop new products and innovative packaging, they reduce the risk of being substituted by the supermarkets. Exporters are also dependent on importers for market information about the changes in consumer preferences, as well as for technical information. With this information the exporter is able to ensure that the product mix and product packaging adhere to the customer preferences. | | | | | | | | | | | | | | Distribution and Transportation ProcessA proper management of the logistics system, that is, the unique combination of packaging, handling, storage and transportation, will ensure that the product is imported and made available to the consumer at the right time and place and in the right condition. International logistics allows country’s to export products in which they have a completive advantage and import products that are either unavailable at home or produced at a lower cost overseas. Natural resource advantages and low-cost labour has enabled countries like Kenya to export flowers to places like the UK by airfreight where in turn the products are distributed nationwide by air, water or by truck. (Seyoum)Flowers take a number of routes to the consumer, depending on where they are grown and how they are to be sold. Some growers cut and pack flowers at their nurseries, sending them directly out to the consumer by mail order. Some flowers are sent to packing companies, who grade the flowers and arrange them in bunches for sale to supermarkets or to deliver by mail order. Some flowers are graded and sleeved by the growers and sold at wholesale flower markets; the wholesalers then sell them on to florists who condition and arrange the flowers for the consumer. Africa is currently responsible for 95% of Dutch rose imports. Our import roses are primarily from Kenya and Ethiopia. The import roses include many different flower types, with a relatively long shelf-life. We have recently begun offering boxed import roses. The advantage of boxed import roses is that the roses from Kenya and Ethiopia can be directly resold to Dutch exporters. The accelerated process gets the roses to the Dutch market two days earlier than those imported in water. Furthermore, we offer boxed import roses at even better prices. Thanks to the extensive purchasing organisation and partnerships with various growers, we are able to offer (almost) all import roses on a daily basis. Even the cultivars that are not auctioned are available from us. We are therefore able to offer you a total package of import roses. Billions of flowers and plants are distributed through the wholesale markets in Holland each year. The flowers are shipped fresh daily to florists, achieving a reliable rate of safe delivery. Most shipping goes by high speed trains. The rest reach their destination by air. Specialized packaging and handling help make the worldwide trade possible. Buyers can make Dutch flower market purchases live from anywhere in the world and have delivery usually within 24 to 48 hours. Most Dutch flowers are sold to European countries, but the eastern United States and the Chicago area are sizable importers as well. (Unknown)Some flowers are sent packed flat in boxes. This enables large amounts of flowers to be packed in small spaces like aircraft holds. Other flowers cannot survive for long periods out of water such as orchids and water lilies. These are either sent with their own sealed water container (called picks) on each stem end for more expensive or tropical flowers or are transported in buckets of water. The latter method extends the life of flowers and reduces labor time as flowers are ready for sale, but obviously also reduces the amount of flowers that can be transported as they are much heavier than dry-packed flowers and hence air transportation charges are higher. (Unknown)The Cool ChainRoses are perishable goods and therefore require a little bit of extra care and attention when they are being exported or transported. Though we might not consider flowers and plants to be perishable in the same way that food stuffs are, we know that cut flowers will continue to bloom but storing them in very low temperatures will slow down their physiological development significantly, which prolongs their life and keeps them fresher for longer. With the exception of tropical breeds, cut flowers and plants should be cooled rapidly to temperatures of around 33-35 F throughout their travelling time. Truck transport of flowers can be a preferable method because temp