Wednesday, July 31, 2019
Procurement and supply chain management Essay
This Publication is concerned with the vital subject of business logistics and supply chain management, an area that can be essential to a firmââ¬â¢s competitive strategy and revenue generation. This management area has been described by many names, including physical distribution, materials management, transportation management, logistics, and supply chain management. Relevant business activities may include one or more of the following areas: transportation, inventory, order processing, purchasing, warehousing, materials handling, packaging, customer service standards, and production. The focus of this Publication is on the planning, organizing, and controlling of these activities ââ¬â key elements for successful management in any organization. Special emphasis is given to strategic planning and decision making as an important part of the management process. Managerial efforts are directed towards setting the level of the logistics activities so as to make products and services available to customers at the time and place required, and in the condition and form desired, in the most profitable and cost-effective way. Logistical activities have always been vital to organizations, and so business logistics and supply chain management represents a synthesis of many concepts, principles, and methods from the more traditional areas of marketing, production, accounting, purchasing, and transportation, as well as from the disciplines of applied mathematics, organizational behaviour, and economics. This Publication attempts to unify these elements to assist in the effective management of the supply chain. The Publication aims to present ideas, principles and techniques that are fundamental to good business logistics practice. It concentrates on important activities of management such as planning, organizing, and controlling, and also on a triangle of interrelated transportation, inventory, and location strategies, which are at the heart of good logistics planning and decision making. Contemporary trends that affect the scope and practice of business logistics and supply chain management have been integrated into the body of the text. Firstly, emphasis is placed on logistics and supply chain management in a worldwide setting to reflect the growing internationalization and globalization of business in general. Secondly, the shift towards service-oriented economies by industrialized nations is emphasized by showing how logistics concepts and principles are applicable to both service-producing tirms and product-producing ones. Thirdly, attention is given to the integrated management of supply chain activities. 1 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: Britain. International Headquarters: College House, Leoville, Jersey JE3 2DB, Britain Telefax: +44 (0)1534 485485 Email: info@cambridgetraining. com Website: www. cambridgecollege. co. uk The Publication contains many practical and contemporary examples that show the applicability of the textual material and assist in the understanding and learning of the key points and concepts. Each Chapter in this Cambridge International College Publication on Logistics, Chain Supply & Transport Management includes: â⬠¢ An introduction section â⬠¢ Examples and/or figures and diagrams to explain the concepts being covered â⬠¢ A summary of concluding comments â⬠¢ Review Questions designed to reinforce learning and contemplation of what is covered in the Chapter Advice on How to Study this Program Every individual CIC Member approaches his/her study in a different manner, and different people may have a particular study method that they find most effective for them. However, the following is a tested and proven Study Method, suggested to you as a CIC Member in order to assist in making your study and learning easier ââ¬â and enjoyable ââ¬â and to assist you to quickly master the contents of this CIC Publication on Logistics, Chain Supply & Transport Management: Step 1: Set yourself a flexible study schedule, depending on the time you have available and what is best for you. For example, the target set could be to study for 1 or 2 hours a night, or for 8 or 9 hours a week, or to complete one Chapter every 2 weeks. There is no set or compulsory schedule, but simply setting a schedule or goal is often an important action in ensuring that study is undertaken successfully and within the specified timeframe. Step 2: Read the whole of the first Chapter at your normal reading pace, without trying to memorise every topic covered or fact stated, but trying to get ââ¬Å"the feelâ⬠of what is dealt with in the Chapter as a whole. Step 3: Start reading the Chapter again from the beginning, this time reading more slowly, paragraph by paragraph and section by section. Make brief notes of any points, sentences, paragraphs or sections which you feel need your further study, consideration or thought. You may wish to keep any notes in a separate file or notebook. Try to absorb and memorise all the important topics covered. Step 4: Start reading the Chapter again from its start, this time paying particular attention to ââ¬â and if necessary studying more thoroughly ââ¬â those parts on which you earlier wrote notes for further study. It is best that you do not pass on to other parts or topics until you are certain you fully understand and remember those parts you earlier noted as requiring your special attention. Try to fix everything taught firmly in your mind. 2 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: Britain. International Headquarters: College House, Leoville, Jersey JE3 2DB, Britain Telefax: +44 (0)1534 485485 Email: info@cambridgetraining. com Website: www. cambridgecollege. co. uk Step 5: There are self-assessment review questions at the end of the Chapter, and you are strongly advised to try to answer or think about them as best you can ââ¬â but do not send your answers to the College. If these questions/exercises highlight any areas that you feel you need to revise or re-read in the Chapter, then go ahead and do that before moving on to Step 6. Step 6: Once you have completed steps 1 to 5 above, move on to the next Chapter and repeat steps 1 to 5 for each subsequent Chapter. 3 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: Britain. International Headquarters: College House, Leoville, Jersey JE3 2DB, Britain Telefax: +44 (0)1534 485485 Email: info@cambridgetraining. com Website: www. cambridgecollege. co. uk LOGISTICS, SUPPLY CHAIN & TRANSPORT MANAGEMENT PROGRAM MODULE ONE ââ¬â BUSINESS LOGISTICS/SUPPLY CHAIN ââ¬â A VITAL SUBJECT (based on Chapter 1 of ââ¬ËLogistics, Supply Chain and Transport Managementââ¬â¢ by Ronald H Ballou) Contents Introduction Business Logistics Defined The Supply Chain The Activity Mix Importance of Logistics/Supply Chain (SC) Costs Are Significant Logistics Customer Service Expectations Are Increasing Supply and Distribution Lines Are Lengthening with Greater Complexity Logistics/SC Is Important to Strategy Logistics/SC Adds Significant Customer Value Customers Increasingly Want Quick, Customized Response Logistics/SC in Non-Manufacturing Areas Service Industry Military Environment Business Logistics/SC in the Firm Objectives of Business Logistics/SC Questions and Problems Introduction As far back as history records, the goods that people wanted were not always produced where they wanted to consume them, or these goods were not accessible when people wanted to consume them. Food and other commodities were widely dispersed and were only available in abundance at certain times of the year. Early peoples had the choice of consuming goods at their immediate location or moving the goods to a preferred site and storing them for later use. However, because no well developed transportation and storage systems yet existed, the movement of goods was limited to what an individual could personally move, and storage of perishable commodities was possible for only a short time. This limited movement-storage system generally constrained people to live close to the sources of production and to consume a rather narrow range of goods. Even today, in some areas of the world consumption and production take place only within a very limited geographic region. Striking examples can still be observed in the developing nations of Asia, South America, Australia, and Africa, where some of the population live in small, self-sufficient villages, and most of the goods needed by the residents are produced or acquired in the immediate vicinity. Few goods are imported from other areas. Therefore, production efficiency and the economic standard of living are generally low. In this type of economy, a well-developed and inexpensive logistics system would encourage an exchange of goods with other producing areas of the country, or even the world. 4 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: Britain. International Headquarters: College House, Leoville, Jersey JE3 2DB, Britain Telefax: +44 (0)1534 485485 Email: info@cambridgetraining. com Website: www. cambridgecollege. co. uk As logistics systems improved, consumption and production began to separate geographically. Regions would specialize in those commodities that could be produced most efficiently. Excess production could be shipped economically to other producing (or consuming) areas, and needed goods not produced locally were imported. This exchange process follows the principle of comparative advantage. This same principle, when applied to world markets, helps to explain the high level of international trade that takes place today. Efficient logistics systems allow world businesses to take advantage of the fact that lands, and the people who occupy them, are not equally productive. Logistics is the very essence of trade. It contributes to a higher economic standard of living for us all. To the individual firm operating in a high-level economy, good management of logistics activities is vital. Markets are often national or international in scope, whereas production may be concentrated at relatively few points. Logistics activities provide the bridge between production and market locations that are separated by time and distance. Effective management of these activities is the major concern of this Program. Business Logistic Defined Business logistics is a relatively new field of integrated management study in comparison with the traditional fields of finance, marketing, and production. As previously noted, logistics activities have been carried out by individuals for many years. Businesses also have continually engaged in movestore (transportation-inventory) activities. The newness of the field results from the concept of coordinated management of the related activities, rather than the historical practice of managing them separately, and the concept that logistics adds value to products or services that are essential to customer satisfaction and sales. Although co-ordinated logistics management has not been generally practiced until recently, the idea of co-ordinated management can be traced back to at least 1844. In the writings of Jules Dupuit, a French engineer, the idea of trading one cost for another (transportation costs for inventory costs) was evident in the selection between road and water transport: ââ¬Å"The fact is that carriage by road being quicker, more reliable and less subject to loss or damage, it possesses advantage to which businessmen often attach a considerable value. However, it may well be that a saving induces the merchant to use a canal; he can buy warehouses and increase his floating capital in order to have a sufficient supply of goods on hand to protect himself against slowness and irregularity of the canal, and if all told the saving in transport gives him a cost advantage, he will decide in favour of the new route. â⬠The first textbook to suggest the benefits of co-ordinated logistics management appeared around 1961, in part explaining why a generally accepted definition of business logistics is still emerging. Therefore, it is worthwhile to explore several definitions for the scope and content of the subject. A dictionary definition of the term logistics is: ââ¬Å"The branch of military science having to do with procuring, maintaining, and transporting material, personnel, and facilities. â⬠This definition puts logistics into a military context. To the extent that business objectives and activities differ from those of the military, this definition does not capture the essence of business logistics management. A better representation of the field may be reflected in the definition promulgated by the Council of Logistics Management (CLM), a professional organization of logistics 5 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: Britain. International Headquarters: College House, Leoville, Jersey JE3 2DB, Britain Telefax: +44 (0)1534 485485 Email: info@cambridgetraining. com Website: www. cambridgecollege. co. uk managers, educators, and practitioners formed in 1962 for the purposes of continuing education and fostering the interchange of ideas. Its definition: ââ¬Å"Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customersââ¬â¢ requirements. â⬠This is an excellent definition, conveying the idea that product flows are to be managed from the point where they exist as raw materials to the point where they are finally discarded. Logistics is also concerned with the flow of services as well as physical goods, an area of growing opportunity for improvement. It also suggests that logistics is a process, meaning that it includes all the activities that have an impact on making goods and services available to customers when and where they wish to acquire them. However, the definition implies that logistics is part of the supply chain process, not the entire process. So, what is the supply chain process or, more popularly, supply chain management? Supply chain management (SCM) is a term that has emerged in recent years that captures the essence of integrated logistics and even goes beyond it. Supply chain management emphasizes the logistics interactions that take place among the functions of marketing, logistics, and production within a firm and those interactions that take place between the legally separate firms within the product-flow channel. Opportunities for cost or customer service improvement are achieved through co-ordination and collaboration among the channel members where some essential supply chain activities may not be under the direct control of the logistician. Although early definitions such as physical distribution, materials management, industrial logistics and channel management ââ¬â all terms used to describe logistics ââ¬â have promoted this broad scope for logistics, there was little attempt to implement logistics beyond a companyââ¬â¢s own enterprise boundaries, or even beyond its own internal logistics function. Now, retail firms are showing success in sharing information with suppliers, who in turn agree to maintain and manage inventories on retailersââ¬â¢ shelves. Channel inventories and product stockouts are lower. Manufacturing firms operating under just-in-time production scheduling build relationships with suppliers for the benefit of both companies by reducing inventories. Definitions of the supply chain and supply chain management reflecting this broader scope are: ââ¬Å"The supply chain (SC) encompasses all activities associated with the flow and transformation of goods from the raw materials stage (extraction), through to the end user, as well as the associated information flows. Materials and information flow both up and down the supply chain. â⬠ââ¬Å"Supply chain management (SCM) is the integration of these activities, through improved supply chain relationships, to achieve a sustainable competitive advantage. â⬠After careful study of the various definitions being offered, Mentzer and other writers propose the broad and rather general definition as follows: ââ¬Å"Supply chain management is defined as the systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole. â⬠6 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: Britain. International Headquarters: College House, Leoville, Jersey JE3 2DB, Britain Telefax: +44 (0)1534 485485 Email: info@cambridgetraining. The supply chain management model in Figure 1-1 viewed as a pipeline shows the scope of this definition. It is important to note that supply chain management is about the co-ordination of product flows across functions and across companies to achieve competitive advantage and profitability for the individual companies in the supply chain and the supply chain members collectively. It is difficult, in a practical way, to separate business logistics management from supply chain management. In so many respects, they promote the same mission: ââ¬Å"To get the right goods or services to the right place, at the right time, and in the desired condition, while making the greatest contribution to the firm. â⬠Some claim that supply chain management is just another name for integrated business logistics management (IBLM) and that the broad scope of supply chain management has been promoted over the years. Conversely, others say that logistics is a subset of SCM, where SCM considers additional issues beyond those of product flow. For example, SCM may be concerned with product pricing and manufacturing quality. Although SCM promotes viewing the supply channel with the broadest scope, the reality is that firms do not practise this ideal. Fawcett and Magan found that companies that do practise supply chain integration limit their scope to one tier upstream and one tier downstream. The focus seems to be concerned with creating seamless processes within their own companies and applying new information technologies to improve the quality of information and speed of its exchange among channel members. The boundary between the logistics and supply chain management terms is fuzzy. Even then, logistics activities are repeated once again as used products are recycled upstream in the logistics channel. A single firm generally is not able to control its entire product flow channel from raw material source to points of the final consumption, although this is an emerging opportunity. For practical purposes, the business logistics for the individual firm has a narrower scope. Usually, the maximum managerial control that can be expected is over the immediate physical supply and physical distribution channels, as shown in Figure 1-2. The physical supply channel refers to the time and space gap between a firmââ¬â¢s immediate material sources and its processing points. Similarly, the physical distribution channel refers to the time and space gap between the firmââ¬â¢s processing points and its customers. Due to the similarities in the activities between the two channels, physical supply (more commonly referred to as materials management) 8 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: Britain. International Headquarters: College House, Leoville, Jersey JE3 2DB, Britain Telefax: +44 (0)1534 485485 Email: info@cambridgetraining. com Website: www. cambridgecollege. co. uk and physical distribution comprise those activities that are integrated into business logistics. Business logistics management is now popularly referred to as supply chain management. Others have used terms such as value nets, value stream, and lean logistics to describe a similar scope and purpose. The evolution of the management of product flows toward SCM is captured in Figure 1-3. Although it is easy to think of logistics as managing the flow of products from the points of raw material acquisition to end customers, for many firms there is a reverse logistics channel that must be managed as well. The life of a product, from a logistics viewpoint, does not end with delivery to the customer. Products become obsolete, damaged, or nonfunctioning and are returned to their source points for repair or disposition. Packaging materials may be returned to the shipper due to environmental regulations or because it makes good economic sense to reuse them. The reverse logistics channel may utilize all or a portion of the forward logistics channel or it may require a separate design. The supply chain terminates with the final disposition of a product. The reverse channel must be considered to be within the scope of logistics planning and control. The Activity Mix The activities to be managed that make up business logistics (supply chain process) vary from firm to firm, depending on a firmââ¬â¢s particular organizational structure, managementââ¬â¢s honest differences of opinion about what constitutes the supply chain for its business, and the importance of individual activities to its operations. Follow along the supply chain as shown in Figure 1-2 and note the important activities that take place. Again, according to the CLM: 9 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: Britain. International Headquarters: College House, Leoville, Jersey JE3 2DB, Britain Telefax: +44 (0)1534 485485 Email: info@cambridgetraining. com Website: www. cambridgecollege. co. uk ââ¬Å"The components of a typical logistics system are: customer service, demand forecasting, distribution communications, inventory control, material handling, order processing, parts and service support, plant and warehouse site selection (location analysis), purchasing, packaging, return goods handling, salvage and scrap disposal, traffic and transportation, and warehousing and storage. â⬠Figure 1-4 organizes these components, or activities, according to where they are most likely to take place in the supply channel. The list is further divided into key and support activities, along with some of the decisions associated with each activity. Customer service standards co-operate with marketing to: a. Determine customer needs and wants for logistics customer service b. Determine customer response to service c. Set customer service levels 2. Transportation a. Mode and transport service selection b. Freight consolidation c. Carrier routing d. Vehicle scheduling e. Equipment selection f. Claims processing g. Rate auditing 3. Inventory management a. Raw materials and finished goods stocking policies b. Short-term sales forecasting c. Product mix at stocking points 10 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: Britain. International Headquarters: College House, Leoville, Jersey JE3 2DB, Britain Telefax: +44 (0)1534 485485 Email: info@cambridgetraining. com Website: www. cambridgecollege. co. uk d. Number, size, and location of stocking points e. Just-in-time, push, and pull strategies 4. Information flows and order processing a. Sales order-inventory interface procedures b. Order information transmittal methods c. Ordering rules Support Activities 1. Warehousing a. Space determination b. Stock layout and dock design c. Warehouse configuration d. Stock placement 2. Materials handling a. Equipment selection b. Equipment replacement policies c. Order-picking procedures d. Stock storage and retrieval 3. Purchasing a. Supply source selection b. Purchase timing c. Purchase quantities 4. Protective packaging designed for: a. Handling b. Storage c. Protection from loss and damage 5. Co-operate with production/operations to: a. Specify aggregate quantities b. Sequence and time production output c. Schedule supplies for production/operations 6. Information maintenance a. Information collection, storage, and manipulation b. Data analysis Control procedures Key and support activities are separated because certain activities will generally take place in every logistics channel, whereas others will take place, depending on the circumstances, within a particular firm. The key activities are on the ââ¬Å"criticalâ⬠loop within a firmââ¬â¢s immediate physical distribution channel, as shown in Figure 1 to 5. They contribute most to the total cost of logistics or they are essential to the effective co-ordination and completion of the logistics task. 11 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: Britain. International Headquarters: College House, Leoville, Jersey JE3 2DB, Britain Telefax: +44 (0)1534 485485 Email: info@cambridgetraining. com Website: www. cambridgecollege. co. uk Customer service standards set the level of output and degree of readiness to which the logistics system must respond. Logistics costs increase in proportion to the level of customer service provided, such that setting the standards for service also affects the logistics costs to support that level of service. Setting very high service requirements can force logistics costs to exceedingly high levels. Transportation and inventories maintenance are the primary cost-absorbing logistics activities. Experience has shown that each will represent one-half to two-thirds of total logistics costs. Transportation adds place value to products and services, whereas inventories maintenance adds time value. Transportation is essential because no modern firm can operate without providing for the movement of its raw materials or its finished products. This importance is underscored by the financial strains placed on many firms by such disasters as a national railroad strike or independent truckersââ¬â¢ refusal to move goods because of rate disputes. In these circumstances, markets cannot be served, and products back up in the logistics pipeline to deteriorate or become obsolete. Inventories are also essential to logistics management because it is usually not possible or practical to provide instant production or ensure delivery times to customers. They serve as buffers between supply and demand so that needed product availability may be maintained for customers while providing flexibility for production and logistics in seeking efficient methods for manufacture and distribution of the product. Order processing is the final key activity. Its costs usually are minor compared to transportation or inventory maintenance costs. Nevertheless, order processing is an important element in the total time that it takes for a customer to receive goods or services. It is the activity triggering product movement and service delivery. Although support activities may be as critical as the key activities in any particular circumstance, they are considered here as contributing to the logistics mission. In addition, one or more of the support activities may not be a part of the logistics activity mix for every firm. For example, products such as finished automobiles or commodities such as coal, iron ore, or gravel not needing the weather and security protection of warehousing will not require the warehousing activity, even though inventories are maintained. However, warehousing and materials handling are typically conducted wherever products are temporarily halted in their movement to the marketplace. 12 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: Britain. International Headquarters: College House, Leoville, Jersey JE3 2DB, Britain Telefax: +44 (0)1534 485485 Email: info@cambridgetraining. com Website: www. cambridgecollege. co. uk Protective packaging is a support activity of transportation and inventory maintenance as well as of warehousing and materials handling because it contributes to the efficiency with which these other activities are carried out. Purchasing and product scheduling often may be considered more a concern of production than of logistics. However, they also affect the overall logistics effort, and specifically they affect the efficiency of transportation and inventory management. Finally, information maintenance supports all other logistics activities in that it provides the needed information for planning and control. The extended supply chain refers to those members of the supply channel beyond the firmââ¬â¢s immediate suppliers or customers. They may be suppliers to the immediate suppliers or customers of the immediate customers and so on until raw material source points or end customers are reached. It is important to plan and control the previously noted activities and information flows if they affect the logistics customer service that can be provided and the costs of supplying this service. Management of the extended supply chain has the potential of improving logistics performance beyond that of just managing the activities within the immediate supply chain. Importance of Logistics/Supply Chain Logistics is about creating value ââ¬â value for customers and suppliers of the firm, and value for the firmââ¬â¢s stakeholders. Value in logistics is primarily expressed in terms of time and place. Products and services have no value unless they are in the possession of the customers when (time) and where (place) they wish to consume them. For example, concessions at a sports event have no value to consumers if they are not available at the time and place that the event is occurring, or if inadequate inventories donââ¬â¢t meet the demands of the sports fans. Good logistics management views each activity in the supply chain as contributing to the process of adding value. If little value can be added, it is questionable whether the activity should exist. However, value is added when customers are willing to pay more for a product or service than the cost to place it in their hands. To many firms throughout the world, logistics has become an increasingly important value-adding process for a number of reasons. Costs Are Significant Over the years, several studies have been conducted to determine the costs of logistics for the whole economy and for the individual firm. There are widely varying estimates of the cost levels. According to the International Monetary Fund (IMF), logistics costs average about 12 percent of the 13 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: Britain. International Headquarters: College House, Leoville, Jersey JE3 2DB, Britain Telefax: +44 (0)1534 485485 Email: info@cambridgetraining. com Website: www. cambridgecollege. co. uk worldââ¬â¢s gross domestic product. Robert Delaney, who has tracked logistics costs for more than two decades, estimates that logistics costs for the U. S. economy are 9. 9 percent of the U. S. gross domestic product (GDP), or $921 billion. For the firm, logistics costs have ranged from 4 percent to over 30 percent of sales. The results from a cost survey of individual firms are shown in Table 1-3. Although the results show physical distribution costs at about 8 percent of sales, this survey does not include physical supply costs. Probably another one-third may be added to this total to represent average logistics costs for the firm at about 11 percent of sales. Over the last decade, physical distribution costs have ranged between 7 percent and 9 percent of sales. There may be a trend of increasing costs for individual firms, although Wilson and Delaney show over the same period that logistics costs as a percent of U. S. GDP have declined by about 10 percent. Logistics costs, substantial for most firms, rank second only to the cost of goods sold (purchase costs) that are about 50 percent to 60 percent of sales for the average manufacturing firm. Value is added by minimizing these costs and by passing the benefits on to customers and to the firmââ¬â¢s shareholders. Logistics Customer Service Expectations Are Increasing The Internet, just-in-time operating procedures, and continuous replenishment of inventories have all contributed to customers expecting rapid processing of their requests, quick delivery, and a high degree of product availability. According to the Davis Survey of hundreds of companies over the last decade, world-class competitors have average order cycle times (the time between when an order is placed and when it is received) of seven to eight days and line item fill rates of 90 percent to 94 percent. LogFac summarizes world-class logistics performance for domestic companies as: Error rates of less than one per 1,000 orders shipped Logistics costs of well under 5 percent of sales Finished goods inventory turnover of 20 or more times per year Total order cycle time of five working days Transportation cost of one percent of sales revenue or less, if products sold are over $5 per 500 gms As might be expected, the average company performs below these cost and customer service benchmarks, when compared with the statistics in Tables 1-3 and 1-4. Supply and Distribution Lines Are Lengthening with Greater Complexity The trend is toward an integrated world economy. Firms are seeking, or have developed, global strategies by designing their products for a world market and producing them wherever the low-cost 14 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: Britain. International Headquarters: College House, Leoville, Jersey JE3 2DB, Britain Telefax: +44 (0)1534 485485 Email: info@cambridgetraining. com Website: www. cambridgecollege. co. uk raw materials, components, and labor can be found (e. g. , Fordââ¬â¢s Focus automobile), or they simply produce locally and sell internationally. In either case, supply and distribution lines are stretched, as compared with the producer who wishes to manufacture and sell only locally. Not only has the trend occurred naturally by firms seeking to cut costs or expand markets, but it is also being encouraged by political arrangements that promote trade. Examples of the latter are the European Union, the North America Free Trade Agreement (NAFTA) between Canada, the United States, and Mexico, and the economic trade agreement among several countries of South America (MERCOSUR). Globalization and internationalization of industries everywhere will depend heavily on logistics performance and costs, as companies take more of a world view of their operations. As this happens, logistics takes on increased importance within the firm since its costs, especially transportation, become a larger part of the total cost structure. For example, if a firm seeks foreign suppliers for the raw materials that make up its final product or foreign locations to build its product, the motivation is to increase profit. Material and labor costs may be reduced, but logistics costs are likely to increase due to increased transportation and inventory costs. The ââ¬Å"tradeoffâ⬠, as shown in Figure 1-6, may lead to higher profit by reducing materials, labour, and overhead costs at the expense of logistics costs and tariffs. ââ¬Å"Outsourcingâ⬠adds value, but it requires careful management of logistics costs and product-flow times in the supply channel. Logistics/SC Is Important To Strategy Firms spend a great deal of time finding ways to differentiate their product offerings from those of their competitors. When management recognizes that logistics/SC affects a significant portion of a firmââ¬â¢s costs and that the result of decisions made about the supply chain processes yields different levels of customer service, it is in a position to use this effectively to penetrate new markets, to increase market share, and to increase profits. When a firm incurs the cost of moving the product toward the customer or making an inventory available in a timely manner, for the customer ââ¬Å"valueâ⬠has been created that was not there previously. It is value as surely as that created through the production of a quality product or through a low price. It is generally recognized that business creates four types of value in products or services. These are: form, time, place, and possession. Logistics creates two out of these four values. Manufacturing creates form value as inputs are converted to outputs, that is raw materials are transformed into finished goods. Logistics controls the time and place values in products, mainly through transportation, information flows, and inventories. Possession value is often considered the responsibility of marketing, engineering, and finance, where the value is created by helping customers acquire the product through such mechanisms as advertising (information), technical support, and terms of sale (pricing and credit availability). To the extent that SCM includes production, three out of the four values may be the responsibility of the logistics/supply chain manager. Customers Increasingly Want Quick, Customized Response Fast food retailers, automatic teller machines, overnight package delivery, and electronic mail on the Internet have led us as consumers to expect that products and services can be made available in increasingly shorter times. In addition, improved information systems and flexible manufacturing processes have led the marketplace toward mass customization. Rather than consumers having to accept the ââ¬Å"one size fits allâ⬠philosophy in their purchases, suppliers are increasingly offering products that meet individual customer needs. Companies too have been applying the concept of quick response to their internal operations in order to meet the service requirements of their own marketing efforts. The quick response philosophy has been used to create a marketing advantage. Saks Fifth Avenue applied it, even though big profits are made through big margins and not on cost reductions that might be achieved from good logistics management. Supply chain costs may even rise, although the advantage is to more than cover these costs through increased profits. Logistics/SC in Non-manufacturing Areas It is perhaps easiest to think of logistics/SC in terms of moving and storing a physical product in a manufacturing setting. This is too narrow a view and can lead to many missed business opportunities. The logistics/SC principles and concepts learned over the years can be applied to such areas as service industries, the military, and even environment management. Service Industry The service sector of industrialized countries is large and growing. In the United States, over 70 percent of all jobs are in what the federal government classifies as the service sector. The size of this sector alone forces us to ask if logistics concepts are not equally applicable here as they are to the manufacturing sector. If they are, there is a tremendous untapped opportunity yet to be fulfilled. Many companies designated as service firms in fact produce a product. Examples include: McDonaldââ¬â¢s Corporation (fast foods); Dow Jones & Co. , Inc. (newspaper publishing); and Sears, Roebuck and Co. (merchandise retailing). These companies carry out all the typical supply chain activities of any manufacturing firm. However, for service companies such as Bank One (retail banking), Marriott Corporation (lodging) and Consolidated Edison (electric power), supply chain activities, 16 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: Britain. International Headquarters: College House, Leoville, Jersey JE3 2DB, Britain Telefax: +44 (0)1534 485485 Email: info@cambridgetraining. com Website: www. cambridgecollege. co. uk especially those associated with physical distribution, are not as obvious. Even though many service-oriented companies may be distributing an intangible, nonphysical product, they do engage in many physical distribution activities and decisions. A hospital may want to extend emergency medical care throughout the community and must make decisions as to the locations of the centers. United Parcel Service and Federal Express must locate terminals and route pickup and delivery trucks. The East Ohio Gas Company inventories natural gas in underground wells during the off-season in the region where demand will occur. Bank One must locate and have cash inventory on hand for its ATMs. The Federal Reserve Bank must select the methods of transportation to move cancelled cheques among member banks. The Catholic Church must decide the number, location, and size of the churches needed to meet shifts in size and location of congregations, as well as to plan the inventory of its pastoral staff. Xeroxââ¬â¢s repair service for copying equipment is also a good example of the logistics decisions encountered in a service operation. The techniques, concepts, and methods discussed throughout this Program should be as applicable to the service sector as they are to the manufacturing sector. The key, according to Theodore Levitt, may be in transforming an intangible service into a tangible product. Problems will remain in carefully identifying the costs associated with the distribution of an intangible product. Perhaps because of this, few service firms or organizations have a physical distribution manager on their staff, although they frequently do have a materials manager to handle supply matters. However, managing logistics in service industries does represent a new direction for the future development of logistics practice. Military Before businesses showed much interest in co-ordinating supply chain processes, the military was well organized to carry out logistics activities. More than a decade before business logisticsââ¬â¢ developmental period, the military carried out what was called the most complex, best-planned logistics operation of that time-the invasion of Europe during World War II. Although the problems of the military, with its extremely high customer service requirements, were not identical with those of business, the similarities were great enough to provide a valuable experience base during the developmental years of logistics. For example, the military alone maintained inventories valued at about one-third of those held by all U. s. manufacturers. In addition to the management experience that such large-scale operations provide, the military sponsored, and continues to sponsor, research in the logistics area through such organizations as the RAND Corporation and the Office of Naval Research. With this background, the field of business logistics began to grow. Even the term logistics seems to have had its origins in the military. A recent example of military logistics on a large scale was the conflict between the United States and Iraq over Iraqââ¬â¢s invasion of the small country of Kuwait. This invasion has been described as the largest military logistics operation in history. The logistics support in that war is yet another illustration of what worldclass companies have always known: Good logistics can be a source of competitive advantage. Lt General William Pagonis, in charge of logistics support for Desert Storm, observed: ââ¬Å"When the Middle East started heating up, it seemed like a good time to pull out some history books on desert warfare in this region â⬠¦. But there was nothing on logistics. Logistics is not a best seller. In a couple of his diaries, Rommel talked about logistics. He thought the Germans lost the battle not because they didnââ¬â¢t have great soldiers or equipment ââ¬â in fact, the German tanks outfought ours almost throughout World War II ââ¬â but because the British had better logistics. â⬠17 LSCTMMOD1 Send for a FREE copy of our Prospectus book by airmail, telephone, fax or email, or via our website: The first wave of 200,000 troops and their equipment was deployed in a month and a half, whereas troop deployment took nine months in the Vietnam conflict. In addition, the application of many good logistics concepts was evident. Take customer service, for example: ââ¬Å"We believed that if we took care of our troops, the objectives would be accomplished no matter whatever else happened. The soldiers are our customers. It is no different than a determined, single focus on customers that many successful businesses have. Now, you take care of your soldiers not only by providing them cold sodas, and burgers, and good food: you make sure they have the ammunition on the front line, so that when they go fight the war they know they have what they need. â⬠This meant that when 120 mm guns rather than 105 mm guns were desired on tanks, they were changed. When brown vehicles were preferred over the traditional camouflage green, they were repainted at the rate of 7,000 per month. Environment Population growth and resultant economic development have heightened our awareness of environmental issues. Whether it is recycling, packaging materials, transporting hazardous materials or refurbishing products for resale, logisticians are involved in a major way. After all, the United States alone produces more than 160 million tons of waste each year, enough for a convoy of 10-ton garbage trucks reaching halfway to the moon. In many cases, planning for logistics in an environmental setting is no different from that in manufacturing or service sectors. However, in a few cases additional complications arise, such as governmental regulations that make the logistics for a product more costly by extending the distribution channel. Business Logistics in the Firm It has been the tradition in many firms to organize around marketing and production functions. Typically, marketing means selling something and production means making something. Although few business people would agree that their organization is so simple, the fact remains that many businesses emphasize these functions while treating other activities, such as traffic, purchasing, accounting, and engineering, as support areas. Such an attitude is justified to a degree, because if a firmââ¬â¢s products cannot be produced and sold, little else matters. However, such a pattern is dangerously simple for many firms to follow in that it fails to recognize the importance of the activities that must take place between points and times of production or purchase and the points and times of demand. These are the logistics activities, and they affect the efficiency and effectiveness of both marketing and production. Scholars and practitioners of both marketing and production have not neglected the importance of logistics. In fact, each area considers logistics within its scope of action. For example, the following definition of marketing management includes physical distribution: ââ¬Å"Marketing (management) is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges with target groups that satisfy individual and organizational objectives. â⬠Marketingââ¬â¢s concern is to place its products or services in convenient distribution channels to facilitate the exchange process. The concept of production/ operations management often includes logistics activities. Now, viewing product flow activities as a process to be coordinated, product flow aspects within marketing, production, and logistics are collectively managed to achieve customer service objectives. The difference in operating objectives (maximize revenue versus minimize cost) for marketing and production/operations may lead to a fragmentation of interest in, and responsibility for, logistics activities, as well as a lack of co-ordination among logistics activities as a whole. This, in turn, may lead to lower customer service levels or higher total logistics costs than are necessary. Business logistics represents a regrouping, either by formal organizational structure or conceptually in the minds of management, of the move-store activities that historically may have been partially under the control of marketing and production/ operations. If logistics activities are looked upon as a separate area of managerial action, the relationship of logistics activities to those of marketing and production/ operations would be as is shown in Figure 1-7. Marketing would be primarily responsible for market research, promotion, sales-force management, and the product mix, which create possession value in the product. Production/ operations would be concerned with the creation of the product or service, which creates form value in the product. Key responsibilities would be quality control, production planning and scheduling, job design, capacity planning, maintenance, and work measurement and standards. Logistics would be concerned with those activities (previously defined) that give a product or service time and place value. This separation of the activities of the firm into three groupings rather than two is not always necessary or advisable to achieve the coordination of logistics activities that is sought. Marketing and production/operations, when broadly conceived and co-ordinated, can do an effective job of managing logistics activities without creating an additional organizational entity. Even if a separate functional area is created for logistics within the firm so as to achieve effective control of the firmââ¬â¢s immediate logistics activities, logisticians will need to view their responsibility as one of coordinating the entire supply chain process rather than being just a local logistics activity administrator. To do otherwise may miss substantial opportunities for cost reduction and logistics customer service improvement. The interface is created by the arbitrary separation of a firmââ¬â¢s activities into a limited number of functional areas. Managing the interface activities by one function alone can lead to sub-optimal performance for the firm by subordinating broader company goals to individual functional goals-a potential danger resulting from the departmental form of organizational structure so common in companies today. To achieve interfunctional coordination, some measurement system and incentives for cooperation among the functions involved need to be established. This is equally true of the inter-organizational co-ordination required to manage product flows across company boundaries. It is important to note, however, that establishing a third functional group is not without its disadvantages. Two functional interfaces now exist where only one between marketing and production/ operations previously existed. Some of the most difficult administrative problems arise from the interfunctional conflicts that occur when one is attempting to manage interface activities. Some of this potential conflict may be dissipated if a new organizational arrangement is created whereby production/ operations and logistics are merged into one group called supply chain. Just as managers are beginning to understand the benefits of interfunctional logistics management, inter-organizational management is being encouraged. Supply chain management proponents who view the area more broadly than some logisticians have been strongly promoting the need for collaboration among supply channel members that are outside the immediate control of a companyââ¬â¢sà logistician, that is, members who are legally separate companies. Collaboration among the channel members that are linked through buyer-seller relationships is essential to achieving cost-service benefits unable to be realized by managers with strictly an internal view of their responsibilities. Supply chain managers consider themselves to have responsibility for the entire supply channel of the scope as illustrated in Figure 1-8. Managing in this broader environment is the new challenge for the contemporary logistician. Objectives of Business Logistics/SC Within the broader objectives of the firm, the business logistician seeks to achieve supply channel process goals that will move the firm toward its overall objectives. Specifically, the desire is to develop a logistics activity mix that will result in the highest possible return on investment over time. There are two dimensions to this goal: (1) the impact of the logistics system design on the revenue contribution, and (2) the operating cost and capital requirements of the design. Ideally, the logistician should know how much additional revenue would be generated through incremental improvements.
Tuesday, July 30, 2019
Fdi in Automobile Essay
Foreign direct investment (FDI) is a direct investment into production or bus iness in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds. Foreign direct investment has many forms. Broadly, foreign direct investment includes ââ¬Å"mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intracompany loansâ⬠. [1] In a narrow sense, foreign direct investment refers just to building new facilities. FDI Inflows to Automobile Industry have been at an increasing rate as India has witnessed a major economic liberalization over the years in terms of various industries. The automobile sector in India is growing by 18 percent per year. The Automobile Sector in India- The automobile sector in the Indian industry is one of the high performing sectors of the Indian economy. This has contributed largely in making India a prime destination for many international players in the automobile industry who wish to set up their businesses in India. The automobile industry in India is growing by 18 percent per year. The automobile sector in India was opened up to foreign investments in the year 1991. 100% Foreign Direct Investment (FDI) is allowed in the automobile industry in India. The production level of the automobile sector has increased from 2 million in 1991 to 9. 7 million in 2006 after the participation of global players in the sector. FDI IN AUTOMOBILE â⬠¢ The automobile industry in India is growing by 18 percent per year. The automobile sector in India was opened up to foreign investments in the year 1991. â⬠¢ 100%Foreign Direct Investment (FDI) is allowed in the automobile industry in India. â⬠¢ The production level of the automobile sector has increased from 2 million in 1991 to 9. 7 million in 2006 after the participation of global players in the sector. â⬠¢ Import of components is allowed without any restrictions and also encouraged. Advantages of FDI in the Automobile Sector in India The basic advantages provided by India in the automobile sector include, advanced technology, cost-effectiveness, and efficient manpower. Besides, India has a well-developed and competent Auto Ancillary Industry along with automobile testing and R&D centers. The automobile sector in India ranks third in manufacturing three wheelers and second in manufacturing of two wheelers. Opportunities of FDI in the Automobile Sector in India Opportunities of FDI in the Automobile Sector in India exist in * Establishing Engineering Centers * Two Wheeler Segment * Exports * Establishing Research and Development Centers * Heavy truck Segment * Passenger Car Segment. Important Aspects of FDI in Automobile Industry * FDI up to 100 percent, has been permitted under automatic route to this sector, which has led to a turn over of USD 12 billion in the Indian auto industry and USD 3 billion in the auto parts industry * The manufacturing of automobiles and components are permitted 100 percent FDI under automatic route * The automobile industry in India does not belong to the licensed agreement * Import of components is allowed without any restrictions and also encouraged. The FDI or Foreign Direct Investment in Indian Automobile Industry has opened up new avenues for the development of this important sector of Indian industries. The liberalization of government policies regarding FDI in the automobile industry of India has increased the scope of this industry. Initially, the automobile industry of India was ruled by national vehicle manufacturers like Premier Automobile and Hindustan Motors. The entrance of foreign automobile companies in the market was restricted by the imposition of high import tariffs and other policies and measures. The first FDI player in the Indian automobile industry was Suzuki. In 1980s this company entered into a joint venture with Maruti Udyog, a state run enterprise. The then Indian government permitted this company to enter the Indian automobile market in 1983. In 1991, the government of India liberalized its policies regarding the automobile industry of India Foreign Direct Investment in the automotive industry of India was permitted. In 1993, FDI was also allowed in the passenger car segment of Indian automobile industry. | The liberalization of governance policies with regard to FDI in Indian automobile industry has resulted in the rapid growth of this industrial sector post 1993. The major global players in the automobile industry have invested in the Indian vehicle manufacture as well as auto component part manufacture. The major foreign players who have a significant role in the development of Indian automobile industry include the following: Ford from USA. DaimlerChrysler AG from Germany General Motors from USA Suzuki from Japan BMW from Germany Honda from Japan Renault from France Hyundai from South Korea Toyota from Japan Foreign Direct Investment in the automobile industry of India has helped in the growth of this sector in terms of production, domestic sales and export. FDI is also permitted in the manufacture of auto components in India.
Monday, July 29, 2019
Alcohol Essay
His advice to teens is to not rink at all and stand up to peer pressure. The advice he gives to his children is to Stay clear Of alcohol and if you are brought into a situation involving alcohol excuse yourself from the party or wherever that may be. He explained that even if you aren't drinking and are in an environment with alcohol that new laws in Pennsylvania claim you are still in the possession of alcohol and you can get charged for that. He touched on the fact that it's becoming socially acceptable by some parents to allow their kids to drink in a controlled environment.He is completely against this because you run the risk of them tenting behind the wheel and putting their lives at risk. I think many people need to be aware of Officer Myers view on substance abuse amongst teens. Especially the fact that you can still get charged with underage drinking, if you are in the presence of alcohol at a party, even if you aren't the one drinking it. I'm against this law because I thin k it discourages the idea of designated drivers but do believe people need to be aware of it. The first adult I interviewed had a very strong opinion on substance abuse among adolescents.She stated that people have a genetic predetermined gene that makes them have an addictive personality. If kids start experimenting with alcohol and drugs too early she believes that they will most likely become abusers by adulthood. She stated, ââ¬Å"It runs in families, for example, several men in my family are alcoholics who personally turned me off from drinking. Also, my older brother was a heavy drinker and my niece has had years of alcohol and drug abuse. It eventually got to the point that she lost custody of her 5 children and was put in jail for stealing money to support her habit. Having grown up with an alcoholic grandfather, she explained that watching the negative effects that alcohol had on her family add her feel in a way that she didn't think alcohol was something she needed. She w as extremely curious as to how kids today even obtain alcohol, who gives them the money, and so on. She also thinks it's outrageous that some parents accept drinking among their teens or even allow them to do it at home. She added, ââ¬Å"l have friends that who let their underage kids drink at home and they said it was to teach them to learn to drink responsibly.However, I think that could increase their chances of addiction and should not be tolerated. â⬠I definitely can relate to this persons perspective on alcohol abuse among adolescents. Coming from a family that has had alcohol and drug problems, I completely understand her viewpoint and why she feels that its not only is it unnecessary for her to drink, but that underage drinking should not be tolerated. However, as I do believe that some people may be more prone to becoming an addict I do disagree with her statement about people being born addicts.The second adult I interviewed absolutely had a different view on drinki ng and alcohol abuse among adolescents. She started off by saying ââ¬Å"The way the laws are today, teens cannot drink beer like did when was a teen. Now they rink hard liquor and they can't handle it. It's also so forbidden that it almost makes it attractive. â⬠She continued by saying that drinking vodka as your first experience is a gateway into trying the next bigger thing which could be smoking weed, than taking pills, and then getting into harder drugs and major alcohol and substance abuse problems.She believes the laws have helped with Dud's but not with changing the drinking and substance abuse amongst teens. Experimenting with alcohol, she stated, is something that teens have always done and that is something she doesn't think any law or program loud change and convince teenagers not to drink. She also added, ââ¬Å"l feel it's always going to take something tragic to happen to make somebody say they won't ever drink again. Also feel people are born addicts. I had a f riend in high school who drank beer in his house alone every night and when used to ask him why he did that he said it was because he liked the way it made him feel. That teen ended up becoming an alcoholic. She strongly felt that she there wasn't anything someone could do about it. Starting a habit that young as a teen wreaked havoc on his early adult life. When asked about her experiences with drinking she stated that, ââ¬Å"l personally could never drink again in my life and it wouldn't bother me. I think people are the way they are. â⬠She explained this is why it's hard for her to relate to teens that have us absence issues because she wonders why they can't just stop doing what they are doing.Something I strongly agree with that this second adult stated was that sometimes it takes something tragic to happen for a teen or even an adult to say that they will never drink again. Although this is clearly not the ideal situation I do think that this happens a lot and that some times kids are hard o convince otherwise. Also agree that bad habits of substance abuse as a teen can lead to a troubled adulthood. I also agree with her view on something that seems like a spiral affect. If you start drinking vodka as a young teen, you may keep experimenting with worse things that could have serious negative effects.The teens interviewed had very interesting views on substance abuse amongst adolescents. The first teen started off by saying, ââ¬Å"l think it's ridiculous that the drinking age is 21 to prevent brain damage, injuries, and addiction when an 18 year old can legally buy cigarettes and smoke as many packs a day as they want. Teens can risk their lives fighting for a country in a war but can't have a beer. â⬠His reasoning was that he understands that experimenting with alcohol can be very dangerous can kill you if you drink too much, especially as a teen, but he feels that he is mature enough to drink responsibly.His parents were raised in a house w here they were able to drink wine with dinner; this made drinking seem like less of a deal. To him, drinking in a controlled environment can benefit kids and stop them from binge drinking. He also stated that drinking in a controlled environment can decreases a child's chance of addiction. The zero tolerance by the police for alcohol abuse by teens does not work. They should instead try to teach teens how to drink responsibly,â⬠he stated. His parents rule is that if he comes home too intoxicated then he will be grounded for a month but they understand that he Will be experimenting with alcohol.While they do not encourage it, they are understanding and want him to know that he can call them if him or any Of his friends are in danger and need help. He added, ââ¬Å"l think that's the best way to be because don't have to sneak around and can have an honest relationship with my parents. â⬠I thought that my friend's viewpoint on the fact that if an 18 year old is fighting for our country, risking his life, and can legally buy cigarettes that he should be able to drink a beer was very interesting.It's something that don't hear about a lot and is a bit controversial because it seems like fighting in a war and smoking can be much more harmful to one's health. I agree that the zero tolerance policy by the police with underage drinking does not work in most cases because don't think teens are ever going to stop drinking. Although I'm not sure that his family's rules on him drinking are the best, it's interesting how beneficial they seem to him. ââ¬Å"l think drinking is really fun and that's why teenagers do it.Kids who binge drink and throw up are disgusting but they will learn from their mistakes,â⬠is what the second friend interviewed had to say. Similarly to what my first friend said, my second friend said that although some adults are in denial of this, no alcohol class, citation, or program could make him stop drinking. Alcohol use amongst teens is completely normal to him but what he is against is getting behind the wheel after you have been drinking or getting in the car tit someone who has been drinking.He stated that if adults want to help teens maybe they should educate them about how different types of alcohol affection differently so teens are aware of alcohol poisoning and how easy it could happen to someone. He added, ââ¬Å"l think the kids who drink the most and do drugs have family problems or other deep rooted issues. Most teenagers just want to have a good time on the weekend and get away from the stress of school, sports, Stats, college applications etc. â⬠In conclusion, he stated that these types of kids who drink to have a good time are different hat kids who abuse drugs and alcohol and that those kids have way bigger problems.
Operations Management in Textile Industry Research Paper
Operations Management in Textile Industry - Research Paper Example This essay explores how textile sector dominates the manufacturing sector and contribute to livelihood.à It also looked at problems encountered during operations and ways of improving those challenges. The theme of the report is operations management in the textile industry. Textile manufacturing is a leading industry in the world. The sector has been the backbone of many countriesââ¬â¢ economy, and it contributes to the development of these countries in terms of creation of employment and economic growth. According to findings, cotton is the worldââ¬â¢s number one natural fiber. It is noted that, in the year 2007, global yield was 25 million tons from 35 million hectares cultivated in more than 50 countries including Saudi Arabia. Saudi Arabia relies on the same industry for their economic growth and employment. This is achieved in many sectors of the industry from the agricultural sector for raw materials to production processes for finish goods. The process needs proper o perations management from the conversion of three types of fiber into yarn, then fabric and then textiles as a finished product. These are fabricated to finished cloths or other artifacts to be sold or used in the marketplace. The natural fiber cotton is the most important in this sector because, without the raw material, no manufacturing process can take place. Many variable processes available will be discussed in at the spinning and fabric-forming stage. This having complexities of the finished and coloration to a production of a wide range of finished products. The Saudi Arabia strength in this industry is recognized world over, currently, Saudi Arabia is one of the largest producers of cotton as a raw material for this industry. This industry helps Saudi Arabia export $1.2 billion in the year 2008, and clothing trade was $ 0.8 billion. This brings a lot of income to the national GDP which has to be followed in terms of operations and process.
Sunday, July 28, 2019
Ethics Essay Example | Topics and Well Written Essays - 750 words - 1
Ethics - Essay Example Obligations as a Nurse Obligations to my profession and work as a nurse pertaining to this case include doing what is required to follow the governmentââ¬â¢s decision. As a nurse, it is no less than an ethical dilemma for me, where if I donââ¬â¢t follow the governmentââ¬â¢s decision, my status as a nurse is challenged and my job is at risk. On the other hand, if I follow the governmentââ¬â¢s decision and starve Terri to death, I have to fight against my own conscience as a human being, and I know this is a fight I am going to lose, and this may jeopardize my peace of life forever. Laws regarding Euthanasia Laws related to euthanasia vary from one country to another. Some countries consider euthanasia an illegitimate practice which is thus condemned, whereas other countries are more flexible and have specified certain conditions in which euthanasia can be given to a patient. There are also certain countries like Australia that had legalized euthanasia once but later change d the rule. ââ¬Å"On 25 May 1995, the Northern Territory of Australia became the first place in the world to pass right to die legislation.à The Rights of the Terminally Ill Actà lasted 9 months before being overturned by the Australian Federal Parliamentâ⬠(Exit International, 2012). Today, all territories and states of Australia deem euthanasia illegal. In the USA, there is a particular federal law related to assisted suicide or euthanasia. It is prohibited under general homicide laws in all the 50 states of the USA including the District of Columbia. Laws related to euthanasia are dealt with at the state level instead of the federal level in the USA. 36 states in the USA prohibit all kinds of assisted suicides, seven states in the USA prohibit them under common law, four states in the USA do not have specific laws related to euthanasia, whereas three states including Montana, Washington, and Oregon have rendered euthanasia legal (ProCon.org, n.d.). Stakeholders in the C ase The stakeholders in this scenario include the government, the people of America in general, Terriââ¬â¢s family in particular, and most importantly, Terri herself. Terri was starved to death upon the governmentââ¬â¢s decision without her or her familyââ¬â¢s consent being involved in it. This did not only take Terriââ¬â¢s life, but also had traumatic effect on her family as well as all citizens of America who felt concerned for Terri and were disappointed by this decision of the government. The government is surely one of the stakeholders in this case since the decision making power is fundamentally assumed by the government and the decisions made by the government affect the lives of common people like Terri and her family. Summary of the Impacts Being a nurse is a big responsibility by all means. A nurse is essentially someone who assists people with activities meant to improve their health. The conventional image of a nurse is of a helping, caring, and loving indivi dual. Giving someone euthanasia is one of the extremely challenging tasks for a nurse since it fundamentally challenges the status of nurse as a caring individual and is also emotionally demanding. Our social and religious values guide us to take care of the well-being of all human beings, not some human beings. Euthanasia is against these social and religious values. How long a person lives is to be decided by God Almighty, not human beings. When humans take this decision in their own
Saturday, July 27, 2019
Research methods Assignment Example | Topics and Well Written Essays - 3500 words
Research methods - Assignment Example Besides, secondary materials are also going to be used to find out the requirements needed for the establishment of the facility among these, the historical background on tourism and hospitality development in the region, prospects in the development of the small scale hotels and bars in the region as well as the consumption trends and potentials of the people intended to use the facility upon its inception. An increasing trend has been purported in the United Kingdom over the last few years as a result of the rising trends in development and financial development in the region. The United Kingdom has been receiving a lot of international as well as regional attention as a destination for various persons and groups. Pegged on the fact that all persons visiting the united kingdom either on routine basis or occasionally has to stop over at some point for refreshment as well as for meals, establishing such a facility will be great option to generate money and build income base in the tourism sector. Tourism and hospitality sector has been experiences a booming demand in the region with the highest levels of demands registered during international and regional fairs such as during the United Kingdomââ¬â¢s public holidays and family days among others. Besides UK has been growing rapidly as an international destination for international fairs, conferences and workshops where several people always gather to participate in such related events and activities. Most of the big hotels and internationally recognized leisure and hospitality places in the region are very expensive offering classy services and accomplishments. These places are therefore not suitable for the quick- go services seekers who would want to take a little moment of their times for a stop over meals and drinks while on transit. There is therefore a big and prospective market for the restaurant and bar developers here given their limited number in some crucial points common
Friday, July 26, 2019
Ban smoking in public places Essay Example | Topics and Well Written Essays - 750 words
Ban smoking in public places - Essay Example Smoke from cigarettes is affecting the environment as a whole and is also affecting the individuals who smoke. This is the very reason that smoking is being banned in public places so it cannot harm other individuals. This argumentative essay would further expand the points of smoking ban on public places and would provide with a definitive conclusion as to which side is more convincing (Vallero 2008, Goudie 2000 & Cooper 2001). The proponents of the ban on smoking in public places present with researches carried out on the topic which clearly shows that smoking in these public places is harmful to the health of many individuals who are exposed to the smoke involuntarily (Carb 2003). They argue that the smoke in these public places can cause non smokers to passively smoke and some asthmatic patients can have a triggered asthmatic attack because of it. (National Health Survey 1994). Similarly patients who are already suffering from fatal diseases would be triggered by this tobacco smoke if they are exposed to it highly as reported by the CDC (Washington Post 2004). They bring forward laws which provide every human life in this world with the right that they should not be exposed to carcinogens which would affect their health and if this ban on smoking does not take place then these individuals would be exposed to the carcinogens of cigarette (U.S Department of Health and Human Services). They also bring forw ard other harms which may be caused by cigarette smoke to the society. The cigarette butts that are left behind by the smoker can be a cause of fire at many places and by imposing ban on smoking the government can ensure that these incidents are avoided (Daily Courier 2004). Similarly it is found that these butts of cigarettes also constitute a great part of the litter found on the beaches and if bans are strictly imposed on these recreational places the cost of cleaning the places would be much low. (Chicago Sun Times 2003). It is seen that many of the
Thursday, July 25, 2019
Summary Essay Example | Topics and Well Written Essays - 250 words - 120
Summary - Essay Example The first step to financial freedom is developing specific financial goals that appreciate the difference between needs and wants; saving extensively and investing in ventures which assure financial security in future. One must clearly understand the difference between assets and liabilities i.e. assets bring in money while inabilities take out. Step number three is investing; after saving enough then train your money to go out, work and bring more for you. Taking up a life or long term disability policy especially to cover the bread winner is important in the financial security of a family. It is a safety tool that can get you out of some unexpected events and huge debts. Understanding taxes and fees is crucial as it helps one save on taxes and also on investment fees. Lastly is ensuring regular reevaluation and revision of the plan as financial decisions are usually dynamic and strategies must change with time. In conclusion therefore a secure financial future requires that we take timely and sound financial decisions such as setting specific & precise financial goals, understanding our assets and liabilities, knowing how taxes and fees work, and investing strategically. Regular reviews of the financial plan helps make priority changes that align the goals to ones current life position. It is thus extremely to track and monitor our financial goals for
Wednesday, July 24, 2019
Research about online shopping Essay Example | Topics and Well Written Essays - 1750 words
Research about online shopping - Essay Example Adoption of this mode of shopping has been a function of multiple factors that the paper seeks to identify. Online shoppers are motivated by increased population in urban areas which makes shopping malls crowded, thus many people prefer ordering goods and services from home. Online shopping has numerous benefits that include convenience, price advantages and also times saving. Selection of goods from a variety and also access to a lot of information that may not be available in offline shopping is another force that motivates online shopping. Most online shoppers have a motive behind their decision to shop online. Large online retailers such as Amazon and eBay began online retailing in 1995 and have developed to accommodate shoppers from all over the world by integrating all the requirements stated above. The University of North Carolina (4) assert that online buying has been marred by problems such as insecurity, lack of privacy, longer waits periods and also no hands on-inspections that are usually more important in purchase decisions. A constellation of these forces act to stall the advancement of online shopping. To enhance online shopping, majority of online retailers are Search Engine Optimized to allow potential clients locate them using the search engines. SEO optimization is a key element in boosting online shopping since most new shoppers locate online shops by searching randomly over the search engines; therefore, making a shop visible is a major step towards encouraging online shopping since more potential clients can locate it. Harnessing customers is a major business requirement. Requirements for participation in online shopping There are several basic requirements for participation and the characteristics of online shopping. According to Luo, Sulin and Zhnag (1132), ease of access to the internet has led to massive changes in the way people shop. Unlike normal shopping sprees, transactions are conducted over the internet. This requirement has bee n boosted by the fact that the world is constantly increasing internet penetration and also the speeds. This makes online transactions faster and efficient. In china for example, most people opt to shop online due to congestion in the shopping malls that usually waste a lot of time. Online shopping is relatively cheap and thus becomes an appropriate avenue through which low income earners can access goods that are highly priced at shopping centers at a more affordable price. In addition, online shoppers have a chance to have their goods delivered to the door after purchase (Li 509). For one to shop online there must be an electronic means of payment. These means of payment are commonly referred to as third party payment systems. The payment systems form a platform through which the buyers and the sellers can exchange goods and make payments without being in physical presence (Luo and Sulin 1135). Such online payment systems include PayPal, Payoneer, Skrill, Alipay and Payza. Another requirement for shopping online is that one must poses a computer or any other electronic device that can access the internet. This follows that the user must be literate to use the gadgets. This requirement has been met in most countries through education. Access to information is vital in online shopping. 70% of online buyers are enthusiast youths who have access to more information about new releases of goods and services. In this regard, the first characteristic of
St. Johns Riverside Hospital- Health Information Management Essay
St. Johns Riverside Hospital- Health Information Management - Essay Example Annually, the hospital serves more than 100,000 patients. Additionally, the hospital has a dedicated team of IT staff members consisting of 17 managers who ensure that patient electronic records and medication inventory trackers are up to date. Definitely, with such a good number of nurses and IT professionals, the hospital has maintained quality standards needed in the health center and enjoyed unwavering support from patients happy with services received. Thus, being an individual who values teamwork and coordination to achieve results as seen in the case St. Johnââ¬â¢s Secondly, for over seven years St. Johnââ¬â¢s Riverside Hospital had used a traditional infrastructure with regard to patient database and storage space. However, when the need to advance towards a better system arose, the hospital did not waste time. It expanded and updated its technology. Initially, the hospital had only 40TB of storage systems which proved inadequate for physical space loads. Also, the hosp italââ¬â¢s legacy servers had reached subscription limits and the chances of the servers crushing were high. The hospital knowing it could not be left in such a compromising situation adopted OmniCube as a solution. Thus, with OmniCube came ease of management, installation and even data transfer. The advantages of the updated system came in abundance for St. Johnââ¬â¢s Riverside Hospital. There was decrease in backup times; the risk of data loss was also minimized since backup was instantaneous.Ã
Tuesday, July 23, 2019
The Adaptive Advantages Of Bipedalism Essay Example | Topics and Well Written Essays - 500 words
The Adaptive Advantages Of Bipedalism - Essay Example The most obvious advantage that bipedalism gives is height. This can be used to observe the environment and detect threats long before they arrive into the immediate vicinity of the creature. Extra height also allows a creature to reach higher levels for food, as we can see in an extreme version in the giraffe. For species which can tolerate water, height also allows deeper wading and again this may allow access to a greater range of food. Another advantage that bipedalism brings is that it frees up two of the limbs from having to take part in activities like walking and standing. Modern day chimpanzees use their arms for displays such as anger or stress, for carrying their young or items like food, and even for tool use. This encourages more specialization and the development of fine motor skills which in turn can enhance the ability of the species to interact with the environment. Many bird species developed flight in the limbs not used for walking, and this gives a secondary, in in many ways much superior form of locomotion. Primates and hominids can use their arms for climbing which is a very useful skill if predators are around. In some ways a large brain could be seen as a disadvantage, because it makes the head size bigger and this can be a problem during the birthing process. It also requires more nutrition, and this could mean that other parts of the body receive less nutrition than is ideal in times of famine. The larger brain, however, gives a significant advantage because it provides more space for new skills to be learnt.
Monday, July 22, 2019
Web 2. 0 technologies Essay Example for Free
Web 2. 0 technologies Essay The next portion of the interview focuses on the perception of students of being aware of this aspect. According to the results of the survey, 24 out of 6 educators are aware of students doing this. In addition to what was mentioned above, 20 out of 30 educators believe that this should be encouraged and 10 educators believe that this kind of technology should be separated from educational learning tools and should be solely for non-academic purposes. For the 20 that had expressed interest in encouraging Web 2. 0 applications into education, ten out of the 20 believe that it should be mandatory to all aspects of education and should be inserted into the academic curriculum. Five (5) believe that the utilization of Web 2. 0 technologies should be naturally included into the curriculum meaning that these tools should neither be constricted nor be pushed into utilization, rather it should be left to be incorporated into the curriculum all by itself. The last 5 indicated a variety of methods in order to encourage the use of Web 2. 0 technologies. When asked with the question on whether or not academic content should be delivered using Web 2. 0 technologies, 23 or 77% of the total number of respondents indicated that Web 2. 0 technologies would be a useful tool in delivering academic content from educators towards students. On the other hand, 13% (7 respondents) believed that it would be better to utilize the older, more accustomed, tools for information dissemination in order to project the desired image to the students and the stakeholders of the business venture. When asked if there is an existing overlap with the VLE that you used in the institution they are in, fifteen (15) out of the 30 indicated no recognized overlap, eight (8) indicated that there is no overlap while seven (7) believed that there is a overlap between Web 2. 0 technologies and the kind of VLE used. Because of the seeming trend with respect to the enthusiasm and openness of educators in using Web 2. 0 technologies, the next focus of the interview was set on Web 2. 0 tools being integrated with VLEs. Out of the thirty respondents, twenty-five (25) had indicated that they wanted to integrate VLEs with Web 2. 0 tools and five (5) had disagreed with the proposed integration. Most of the five (5) educators were from the seven people that believed there is an overlap between the two tools. The third part of the study focused on how they had perceived Web 2. 0 technologies as being part of the assessment process. The first part of the interview focused on Web 2. 0 technologies as part of the assessment purpose, the interview solicited how the interviewees perceived Web 2. 0 tools as an assessment tool. Generally speaking, most of the respondents to the interview indicated that they believe that currently, Web 2. 0 technologies used as a means of being able to assess is still very young rather it is still in its infancy stage. Though they believe that it would be step forward for the educational setting, there is still a need for further verification for such a move and should be tested if the students can adapt to such a change. Wikis was cited as one potential for teachers to evaluate the effectiveness of students in being able to collaborate with their partners in group work. Most of the educators indicated that they would rather evaluate students using the old method of educational teaching however they would be amenable of such as a move as to include Web 2. 0 applications into the curriculum and use it for checking and teaching. On the other hand, they had noted that it would be useful to check items in Web 2. 0 applications that are actually their cornerstone or the reason for their being ââ¬â pictures in photoblogs such as flickr and video assignments in Youtube. When given the opportunity to explain very briefly each Web 2. 0 technology, the opinions of each educator as to how they can use these tools were solicited. For the first part of this section, blogs was the first application to be tackled. Based on the discussion, the educators generally indicated that they can utilize blogs as a mean of generating discussions among the students. With blogs having the capacity to take in comments and views via posting on certain topics, educators can then start up discussion on a particular topic and solicit the opinion of the class. Educators can then assess the views of the students by being able to review the comments of the students on that particular topic because of the capacity of blogs to retain inputs from users. The second tool is Wikis. Educators that were interviewed viewed wikis can be used in assessing the capability of the members in being able to collaborate and create singular information or a single document. This can then be used as a means of being able to assess how the students can cope with team effort and the output of such collaborative efforts. Social networks on the other hand can be used both by students and educators as well as a means to identify connections and networks that within communities that can be used by the students in order to determine people that have the necessary information for the teachings imposed by the students. Lastly, focus was given on video and photo sharing sites. Although this is relatively a new technology that would be used in sharing video and photo information between students, it is believed all these sites can be used in order to support all the learning motives for students and educators as well. Essentially the element of being able to share information particularly videos and photos is necessary are inherent in all sites. In addition to this, educators that were part of the group interviewed had already seen a video sharing site and they believe that due to the existing trends, video sharing networks will be able to further thrive and the educators believe that this will entail a positive effect on the way students are able to learn and how educators are able to teach.
Sunday, July 21, 2019
Impact of Tourism on UK Tourist Destinations
Impact of Tourism on UK Tourist Destinations Evaluate the Nature and Extent of Tourism Impacts at a Range of Tourist Destinations The tourism and travel patterns of past decades, combined with the challenging market conditions, especially given the impacts that recent terrorist activity and natural disasters have had on the tourism market, have tended to result in short-term approaches from many organisations in travel and at destination resorts, where commercial activity has thus impacted negatively on natural or cultural environments. In historic terms, leisure travel is relatively new phenomenon, starting in the UK with the ââ¬ËGrand Tourââ¬â¢ journeys of the eighteenth century, when wealthy individuals chose to visit neighbouring lands to learn about politics, culture and art. By the nineteenth century, leisure travel within Britain increased, with the growing popularity and royal patronage of spa and seaside towns, and the corresponding availability of transport, which became faster and easier during the industrial revolution, with improved roads and the introduction of trains and rail travel. The we althier and aspiring middle classes popularised travel destinations that developed into resorts offering entertainment and serviced accommodation. (Global Market Information Database, May 2005) However, this rapid growth of tourism has resulted in several unforeseen impacts on destinations, which have been observed to be either beneficial or detrimental to the locality. The twentieth century inventions of the motor car and coach transport accelerated the popularity of domestic holidays, leading to the seaside holiday becoming firmly established as integral to British culture, with corresponding impacts on town such as Brighton and Blackpool, which have become strongly geared towards holidaymakers Sea travel improved and developed with the leisure traveller in mind, bringing ferry routes, luxury liners and vessels for hobbyists. The two World Wars also brought about the accelerated development of air transport, which resulted in a demand for civilian passenger planes, and thus fast overseas travel by plane opened up the world to international leisure journeys. As a result of this massive explosion in tourism, over the past three hundred years, tourism has brought prosperity to many regions of the world that would otherwise exist in abject poverty, such as the island of Bali, where living standards are considerably higher than the neighbouring islands in the Indonesian peninsula. (Friedheim, 1996) However, frequently tourism grew to suit human interests, particularly those of the tourists and businesses, and by no particular long-term plan with regards to sustainability at the local destinations. As a result, today the detrimental effects of global tourism are evident in the form of pollution, the erosion of local culture, the widening of the gap between rich and poor, a threat to survival for local economies and the spoiling of natural habitats and landscape. (Cooper et al, 2004) Indeed, whilst Friedheim (1996) mentions the strong positive impact of the tourist trade in Indonesiaââ¬â¢s Bali Island, with the island frequently being described primarily as a popular tourist destination, Friedheim also comments on tourismââ¬â¢s impact on the islandââ¬â¢s economic and social conditions for those locals not actively engaged in the trade. He also comments on how traditional skills and employments are increasingly being suborned to appeal to the tourist masses and their money, and thus the islandââ¬â¢s culture is being eroded. Similar comments are made on the developments related to the tourist trade in Eastern Europe, following on from the collapse of the Soviet Union and the ââ¬ËIron Curtainââ¬â¢, when the areaââ¬â¢s potential as a tourist destination first began to be explored. However, in this case, there was widespread cooperation amongst the Eastern European countries for the promotion of the regions tourist trade, and tourism generally had a positive impact on the areas re-building efforts (Friedheim, 1996) due to its focus on the culture of the cities, rather than beach holidays. Lori (1998) takes a similar view, but focuses on the second annual Sustainable Tourism Conference of the Caribbean Tourism Organization in Trinidad, Spain. In the Caribbean, tourism had previously followed a quite unsustainable model; however the aim of the conference was to address this, based on the tourism strategy initiatives followed by the Dominican Republic: a model ecotourism destination in the Caribbean. Although it is wise to aim for sustainable tourism wherever possible, to reduce the negative impacts on regions wherever possible, there are often factors that work against this desire. One of these is seasonality: an integral quality of the landscape which greatly affects, informs and interweaves with many tourism factors, such as the tourism-based economies of Greek island communities, currently almost entirely dependent upon summer holiday tourism for their survival. (Terkenli, 2005) The multiple facets and impacts of seasonality produced and inscribed by tourism on the landscape, and specifically on the landscape of northern Crete, can, as with many other impacts and destinations, be both problematic and beneficial. In the case of Crete, the three different stages of the tourism destination lifecycle model used by Terkenli (2005) are roughly represented by three different zones of tourism impact in the broader region of Hersonissos in northern Crete. Here, tourism-induced changes roughly attenuate with distance from the coast, acquiring distinctive geographical patterns that follow those of spatial tourist concentration, scale of development, and incorporation of tourism into Cretan society and space, thus giving the island a seasonal economy and demography, in common with many similar regions dependent on seasonal tourism. However, there can be major negative impacts on regions with economies of this type or, indeed, any economy based on tourism. For example, in the months immediately following the 11 September 2001 terrorist attacks, there was a strong trend in many regions towards staying closer to home, with tourists being deterred from long-haul travel for several reasons, including lower incomes, the fear of further terrorist attacks, and delays at airports due to higher security. This benefited domestic travel, as well as regional travel such as travel between European destinations, travel between the US and Canada, and travel within Asia, thus helping some tourist destinations in these countries. However, it had an adverse impact on destinations such as Florida, which relies heavily on tourists from Europe, and many destinations that relied heavily on tourism from the US were particularly badly affected by the fall-off in American tourists immediately after the attacks of 11 September 2001. Thes e included destinations such as the Caribbean and Latin America, and within these regions, notably Mexico, Puerto Rico and the Bahamas. (Global Market Information Database, Sep 2005) In response to this, Latin American and Caribbean governments launched marketing campaigns and other measures to encourage tourism in the region. In Mexico, for example, which depends on the US for 85% of its tourist arrivals, measures included the elimination of sales taxes on conventions, and an increase in the promotional budget of 50% through a new public-private consortium. The Caribbean Tourism Organization (CTO) also launched an emergency joint marketing, promotion and public relations campaign at the end of 2001 to try and resurrect the failing tourism market which was pushing many of the region economies towards recession (Global Market Information Database, Sep 2005) Indeed, increasingly governments and organisations across the world are realising that travel and tourism growth cannot be left to chance, as the potential impacts on regions, and also entire nations, are just too great. As a result, in 2003 over five hundred of the worldââ¬â¢s most influential business leaders called on the World Travel and Tourism Council (WTTC) to form a new vision and strategy for travel and tourism. This project combined the forces of stakeholders from public and private organisations, resulting in the formation of ââ¬Å"Blueprint for New Tourismâ⬠campaigns to influence behaviour and to introduce new legislation and best practice for the industry in its quest to help governments recognise travel and tourism as a top priority, to balance economics with peopleââ¬â¢s needs, culture and environments and to share the pursuit of long-term growth and prosperity, underpinned by corporate social responsibility. Global Market Information Database (May 2005) O rganisations are now required to evidence the measures they take towards social responsibility in their annual reports, and consumers too are becoming more aware of the impact that tourism and development can have on the world, through television documentaries and media coverage of issues such as global warming, endangered species and fair trade practices. To help consumers make informed choices on their travel destinations, consumer advisory services such as the Centre for Environmentally Responsible Tourism and ecotourism.org were established, offering advice on the best destinations and most sustainable tour operators. Indeed, as with many regulatory bodies around the world, for tour operators, such an endorsement provides a promotional opportunity and can further benefit nations: for example, the dreadful and much publicised effects of the Asian tsunami awoke the UK public to the need to give and support nations in peril. Popular destinations for back-packers were literally wipe d off the map, and to support the regeneration of the tourist industry in the affected countries, volunteer holidays were offered, which helped provide useful skills and manpower to local populations, as well as helping tourists get closer to the local culture. A final impact of tourism is its tendency to skew the geographic distribution of wealth in countries that have particular tourist attractions. Egypt is a good example of this, as it is now looking into the possibilities for diversifying its tourism opportunities throughout the country, with the main target for expanding the tourism sector in nature-based tourism. The coral reefs and rich marine life in South Sinai and the Red Sea coast have made these two areas among the premier scuba diving destinations in the world, with many beach resorts are now in operation and still hundreds to be constructed. However, previous tourism development in Egypt has resulted in a series of negative environmental impacts, both to the reefs and marine life, and to the other areas of the country which have suffered a lack of funding and investment due to not being in proximity to well known tourist destinations. The ambitious development plans to receive 16 million tourists across the country by 2017 wi ll thus take into consideration sustainability and demographic concepts, with the government and developers having significant roles to play in adopting and implementing environmentally sound policies and practices to avoid the degradation of the natural heritage of Egypt for the sake of the current as well as future generations. (Shaalan, 2005) In conclusion, tourism offers some of the most impoverished regions of the globe the chance to develop their infrastructure and quality of life in ways that would otherwise be impossible in the modern world. However, frequently these developments are allowed to proceed without thought to maintaining a balanced distribution of income amongst the local inhabitants, and preserving the very attractions which bring tourists to the area. As a result, tourism can often have significant, wide ranging negative impacts as well as positive ones, such as in the case of Bali. However, with the new sustainable tourism developments helping to reduce the negative impacts, and distribute the positive ones equally across the local populations, there is evidence that tourism can, and in future increasingly will, provide beneficial and sustainable long term impacts to the communities and destinations it affects. References Cooper, C. Fletcher, J. Fyall, A, Gilbert, D. and Wanhill, S. (2004). Tourism: Principles and Practice, 3rd Ed. Prentice Hall: London. Friedheim, E. (1996) Holding on to paradise. Travel Agent; Vol. 284, Issue 1, p. 22. Global Market Information Database (Sep 2005) The World Market for Travel and Tourism. Euromonitor International. Global Market Information Database (May 2005) Travel and Tourism in the United Kingdom Euromonitor International. Shaalan, I. M. (2005) Sustainable tourism development in the Red Sea of Egypt threats and opportunities. Journal of Cleaner Production; Vol. 13, Issue 2, p. 83. Tenny, L. (1998) Second CTO conservation confab explores tourisms impacts. Travel Weekly; Vol. 57, Issue 38, p. C9. Terkenli, T. (2005) Human Activity in Landscape Seasonality: The Case of Tourism in Crete. Landscape Research; Vol. 30, Issue 2, p. 221.
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