McDonalds: Evolution of the Food Industry Essay -- Management

McDonalds Evolution of the Food IndustryHistoryMcDonalds has had a global impact on the food industry. McDonalds developed a revolutionary idea known today as fast-food. This impact began in 1930 when Maurice and Richard McDonald left New Hampshire seeking to make a fortune in Hollywood, started up a drive-in restaurant in San Bernardino. Unlike so many other food-service operations at the time, McDonalds came up with new ideas that turned the usual opposed paced dinner into a finely tuned engine. McDonalds offered only a nine-item menu with burgers, French fries, shakes, and pies. They also eliminated seating, and used paper and plastic utensils instead of glass and porcelain. Like henry Fords assembly line, McDonalds incorporated this idea into their food service, letting them serve hamburgers in less then sixty seconds. The menu was extensively cheaper then competitors which due to the higher up changes. Although the McDonalds business was doing well, it wasnt until 1954 when R ay Kroc saw the operation that it started to develop into the McDonalds of today. Ray Kroc was a fifty-two year old milk-shake machine salesman at the time and decided to picture out McDonalds due to their odd order of eight milk shake mixers for one restaurant. Most of Krocs customers purchased only one milk shake mixer, and a muck of two. Kroc was curious to see what kind of operation needed the capacity to churn so many milk shakes. What Kroc saw that day in 1954 when he pulled up to McDonalds was like nothing he had ever seen. Kroc is quoted as saying This had to be the most amazing merchandising operation Id ever seen. Although the McDonald brothers were content with their restaurant, Kroc saw the hereafter and where this idea ... ...s now knows how important cleanliness is to customers in deciding where to eat.Another interesting look into the future of McDonalds is the ability to bring your laptop into the restaurant and surf the meshing while you eat. This new technolog y brought by McDonalds is in hope of attracting new customers and building customer loyalty. The target of this move is aimed at the younger generation, and the business person on the go. McDonalds has already built a few of these innovative restaurants in early 2003. McDonalds has also opened a few of the innovative restaurants called McCafe. These new caf shell shops will not resemble that of any other normal McDonalds. The customers will get to choose from premium coffees, muffins, pastries, bagels, and McMuffins. McDonalds believes that the McCafe will do well because of the popularity of McDonalds breakfast.

Cause Effect Essay - Consequences of Too Many Cats -- Expository Cause

Cause Effect Essay - Consequences of Too Many CatsWe have quintet cats that live in our signaling. This was not our original plan, merely it turned come on that demeanor. My family got two tortoiseshell-colored kittens, Kit-Fat and Minkie when I was nine and my sister was seven. Two years later, we were preparing to move to the country, and our pastors missy had three kittens to give away. Our pastor convinced us that we needed cats outside in the country. At that age, Risa and I were greatly in love with kittens. Subsequently, three poof kittens named Duff, Muff, and Buff came to live with us. But alas, our move was delayed and these adorable fluff balls lived wrong for the next six weeks. When we finally moved, the whole family was too attached to these kittens to out them outside and subject them to the dangerous world. Therefore, we became a household with five cats. To this day, we are still reaping the consequences of that choice. Occasionally, there is an article in th e newspaper about a house where the people have many cats and do not care for them. The cats are allowed to take over the home and a severe mess results. This is obviously the constitutional result of having too many inside cats. However, even in households where the cats are well taken care of, problems can result from a profusion of inside cats. The biggest problem with a multiple cat household is the interaction between the various cats. Many problems stem from this interaction. Cats can be very territorial creatures. In a multi-cat situation, there is also a pecking order and a prevalent cat. We have four females and only superstar male, so our male naturally became the dominant cat. This caused a problem because before Duff came, our oldest female was dominant. Du... ...l, we love our cats, and they are an important part of our daily family life. There have been times alone the way that we have been tempted to get rid of them, but we knew that we could never do it. This is due to the positive effects that our cats have upon our home. Cats can be very affectionate and engaging creatures. They constantly provide us with amusement as each one has his own personality. With several cats, each family member has a favorite or favorites, and everyone has a cat friend. Cats provide happiness, despite all the work required to care for them and manage them. Nevertheless, I still would not recommend that anyone have more than one or two cats in a house. Too many cats in one house causes too many problems and negative effects. We made a mistake, but we have dealt with the circumstances, and through it all have learned many important lessons.

Good and Evil in Beowulf Essay -- Epic of Beowulf Essays

Good and Evil in Beowulf In Beowulf, the conflict between good and venomous is the poems main andmost important aspect. The poet makes it clear that good and evil do notexist as only opposites, but that both qualities are presentin everyone. Beowulf represents the ability to do good, or to performacts altruistically and in help of others. Goodness is also showedthroughout this epic as having the ability to cleanse evil. Even though evilis presented by Grendel, Grendels mother, and the dragon, who are fill up with a desire to act against people and ultimately destroy them.Even pride, a human quality, is presented in Beowulf as a sign that evilexists.Beowulf takes it upon himself to anticipate several majuscule deeds that he will perform to help countries in need. One of these deeds is his offer to KingHrothgar, in which he proposes to butcher Grendel. Beowulf states,Single-handed Ill settle the strife In this statement,Beowulf is simply stating that he will kill this evil creature ,Grendel. Another selfless act Beowulf states is that he will murderGrendels mother. Beowulf declares, And I give you pledge, She(Grendels mother) shall not in safety escape to cover. Beowulfpromises to see to it that Grendels mother will be killed. After Beowulfbecomes king in Geatland, he shows his great ability once more bypledging to kill the fire-dragon. The ring-prince scorned toassault the dragon, the poet said. Beowulf is said to have pled...

Themes Presented In Far From The Madding Crowd Essay -- English Litera

Themes Presented In Far From The Madding CrowdThomas inflexible was born on 2nd June 1840 in Higher Bockampton, Dorset.His obtain was a builder and mason and his mother a former servant wasa well read intelligent woman with a strong personality. Hardy wasimpressionable from a young age and as a country boy was surrounded bythe traditional aspects of rural life with its superstitions, folklore, horticulture and past times. In 1856 Hardy worked with an architectand continued his studies under the guidance of a parish rector. Thisfriendship has been thought to affect to the tone of Far From TheMadding Crowd. The intensity was published in 1874 and is one of his mostwell-known impertinents. His unique style is never more apparent in thisnovel with the focus on relationships in a rural community.In this essay I will be discussing the effect of love as it isportrayed in Far From The Madding Crowd. I will be discussingdifferent aspects of love and themes which affect the key theme lov ein the novel. These themes include character and develope workforcet,atmosphere, language and authorial intrusions.From the start of the novel it is noted that Bathsheba is a very vainand unconventional character. Right from the start while on horsebackshe proved this. A small swing smell glass was disclosed, in whichshe proceeded to survey herself attentively. She factored her lips andsmiled. It is questioned that Bathshebas vanity is uncurable and atthe end of it all, is it still uncured? She stands out from the worldaround her because it is ruled by men but she is in charge of thecommunity around her. Bathshebas love life follows a circular patternand by the endd she loses strength and stamina and eventually ends upmar... ... of love and the main characterslives revolve around it. Hardy uses many different devices to visualise thepower of love which I have used to show the power of love. Hardy usespeoples characters through the novel to show their feelings andreactions broug ht on by love. He uses atmosphere throughout the novelto potray the mood and set the scene to help show love in itsdifferent aspects. Hardy uses language also throughout the novel toreflect both the times and the feelings of characters. Hardy also usesauthorial intrusions to conk opinions of characters through the story.All these topics help show the importance and power of love in FarFrom The Madding Crowd.The story takes place in rural part of England at the end of 19thcentury. Beautiful country and good description of many peoplepeacefully living there are great orbit for a love story.

Maya Angelou :: essays research papers

incorporated Soul and Maya Angelou collective Soul, a 90&8217s based rock band, and the famously known poet Maya Angelou, have a statement to grow on their thoughts and feelings. They are expressed in two different forms of metrical composition. Maya Angelou express them in contemporary poetry, while the rock group Collective Soul adds rhythm and a impressive beat to their lyrics. Both of these forms of poetry are very strong at getting their point across to their auditory modality that is very attracted to their work. Both Maya Angelou and Collective Soul share the hardships and oppression that has been bestowed upon their life&8217s, and other human beings. Maya Angelou&8217s poem Still I Rise and Collective Soul&8217s song December, show the effects on an individual through positive and negative means of expression. Maya Angelou and Collective Soul&8217s poetry are similar in some ways when broken down correctly. Collective Soul writes &8220 why drink the water from my hand? Contagious as you think I am reflects the same ideas that Maya Angelou shares when She says, &8220Does my sassiness upset you? why are you beset with gloom These two parts of their writings are asking a similar question. Why do you choose to seclude me from you&8217re world am I something you wouldn&8217t expect from another human? &8220Don&8217t scream roughly don&8217t think aloud turn your head now baby just spit me out don&8217t worry almost don&8217t speak of doubt turn your head now baby just spit me out. This is a complex way saying why is you disrespected me because you can&8217t stand the way that I am. Just walk all over me treat me different act as if I&8217m a piece of crap. What good does it do for you by bringing me down? I think this is the question Collective soul is asking the person or group of people who are setting out to bring him down. Maya Angelou asks a similar question when she writes, &8220Does my haughtiness offend you? &8220Don&8217t you take it treme ndous hard cause I laugh standardised I&8217ve got diamonds at the meeting of my thighs. This question is being asked to her opponent that chooses to treat her differently just like what collective Soul is asking in their song. In my opinion they are asking their enemies, why do you do this to me? What have I done to make you so awful mad, that you go out of your way to bring me down?

My Personal Philosophy of Education Essay examples -- Educational Educ

Philosophy of Education Becoming a teacher is breathing out to be one of the bang-upest accomplishments of my life. Teaching was never a childhood dream for me like it was with others. Some people have always known that they cherished to become some type of teacher, but I never decided to until I entered college. Ive always loved being around children and it makes me feel great to be able to help someone, so becoming a teacher is the perfect career choice for me.I believe that the lawfulnessful disposition of close to students is that they like school and they desire to learn. I also believe that the school and the teachers greatly influence their nature over the course of their schooling. I believe that this true nature changes for a lot of students because at some point they go to a school that they dont like or they have a teacher who is mean to them and expects them to do everything on their own without any guidance or help. Ive had teachers like his and they made me dis like school very quickly. Hopefully, if this is the case, they go away eventually have a great teacher that inspires them to do well and to like school once again. I want to be that teacher. In my opinion, the nature of knowledge is relative or constructed. Every person has their own set of opinions and beliefs that determine what that person perceives as the truth. Most people believe that their ideas, opinions, and beliefs of something are the truth to them. Its my belief that the overall purpose of education is to improve society as a whole. Everyone should be given an equal opportunity to learn as they mature. I believe that the more educated a person is then the more likely they can become productive. A society full of successful people will be a successful society. Educat... ...ts will quickly lose interest. My professional development plan is to begin my career by depute teaching after graduation. I do not want to relocate far from my current residence but Im not exclusi vely opposed to it if the right opportunity presents itself. I will continue to substitute until I can find a full-time position. I do want to return to school to get a masters degree after I have received some experience in the discipline or I am able to secure a full-time teaching position. There are a lot of different professional groups to unite in the fields of physical education, health education, and teacher education. At this time I have not decided on which groups I will adjunction in the future but I do plan to be active in a few of them. I also plan to be very active in the community that I will be teaching in. I feel that this is very important for all teachers.

Letters to a Young Poet

Late in his animation, the Czech great poet Rainer Maria Rilke maintained a correspondence with a young poet, Franz Xaver Krappus through his well-k flatn ten letters. While in military academy, Young Franz full of passion and deep-seated appreciation for nifty poetry, on reading a collection of Rilkes poetry, decided to send Rilke some of his poetry for Rilke to read and offer some advice in form of commendations and criticisms. The correspondence was profound and filled within insight in various liveness written reports, with profound messages for every one. It began in lasted from 1902 to 1908 and in June, 1929 three years after Rilkes death, Franz gathitherd and published the letters in Berlin.Frank introduction of the letters detailed his encounter with the writings of Rilke while he was in the Military Academy, Vienna. He interacted with professor Horacek who talked to him about the life of Rilke as a gifted serious gentle calm and introverted fellow while in the same aca demy who was dedicated to his training Rilke continued his education at home in Prague when he could not cope in his new school away from the military academy. by means of this correspondence, one understands the life of Rilke within the sentences he sent to this young poet. There is a hint to the transformation that he undergoes the principles that guide his life and how these changes influence his writing.The forward motion in the life of Rilke is visible in the letters sent to this 19-year old poet his life is based on the finding of the trouble of the inner pursuit answer the basic question of life and then wait until the inner voice speaks with a bold answer. This is his opinion of the foundation of a viable career. He conceives in the power of reading to build a strong writing career good writers read and good readers write. To approach productive reading, it is important to recognise with an exposed mind and be ready to experience the work. This is how best to underst and writings and be in the best position to criticize them if need be.The central theme is discern. He understands the difficulty associated with loving. He tells the young poet about the travail of nurture how to love. He leaves him with the advice keep learning. Sadness, aloneness also show in his write-up. This conflict with love may reflect the hitches he experiences in his family life, and why he seldom mentions his family. As an introvert, this is allowed. Rilkes search for solitude is important in discovering the pace and direction of the inner man this is a major theme of his life. This also keeps him away from the pressures of the outside world and its attendant conflicts. Lets take a go out at the lettersLetter One There is only one way Go within. Search for the cause, find the impetus that bids you write. He writes this to advice Franz about life career starting with an introspective search for discovery of the true reason for essence in life. This letter shows the ba sis for his life pursuit and advice for the young poet on career choice.Letter Two Live awhile within these books. Learn of them, whatever seems worth the learning, but above all,love them. To live within the books is to be able learn, and to love them is the way to be open to its lessons and make appropriate life changes as required.Letter Three Let me ask you right here to read as little as possible of aesthetic critiques. It shows his distaste for criticisms that are not appreciative of the exclusive work of arts. Love is a essential for true criticism.Letter Four Try to love the questions themselves, like locked rooms and like books written in a foreign language. Do not now look for the answers. They cannot now be given to you because you could not live them. The questions that arise in life do not come with answers by merely postulation but until the questions are incorporated into daily living thats where they get answered.Letter Five There is ofttimes beauty here because there is oftentimes beauty everywhere. Life is beauty, it al depends on what you see not where you are.Letter Six Why dont you think of him as the coming one, who has been at hand since eternity, the succeeding(a) one, the final fruit of a tree, with us as its leaves? Live your life knowing there would be pain, but you calm joy.Letter Seven To love is also good, for love is difficult. For one human being to love another is perhaps the must difficult task of all, the epitome, the ultimate test. This letter was explicit on love, and detailed the enigmatic way he sees and experienced love.Letter Eight And this is the reason the sadness passes the some occasion new within us, the thing that has joined us, has entered our heart, has gone into its inward chamber and is no longer there either it is already in the blood.Letter Nine Your doubt can become a good judge if you discipline it. It must become a knowing it must become the critic. This gives advice on how to turn doubt to a use ful tool in life and career.Letter Ten Art also is only a way of life, and we can, no matter how we live, and without knowing it, prepare ourselves for it. He admonishes the Young Franz about the worldly concern of art he asserts that that art is part of us and our lives whether we accept the fact or not.REFERENCERainer Maria Rilke. garner to a young poetLetters to a young poet. Accessed from www.sfgoth.com/immanis/rilke/letter1.htmlLetters to a young poet. Accessed from www.carrothers.com/rilke_main.htmRilkes writing. www.floozy.com/allison/rilke/r.index.htmlLetters to a Young PoetBrenda Benson Letters to a Young poet by Rainer Maria Rilke Letters 1-5 Letters to a Young Poet, letter 1 No one can advise or help you- no one. There is only one thing you should do. Go into yourself. I believe this advice goes for anyone, but I can identify with this. The reason is that you really cant depend on anyone, because the other psyche will not care for the placement or whatever the way yo u do. Many of times, where I thought I could seek for other for help, they hadnt come through for me.Even though, it is something disappointing, but it is life, we must deal with disappointment constantly. In the end, what doesnt kill will only make you stronger, how true those words are. For when you are at your lowest point, that is when your strength shines through. Letter to a Young Poet, Letter 2 Learn from what you relish is worth learning Learning is not just learning from a book, it can also be about life, the experiences that a person has gone through.People have often advised me what I should do with my life and how I should live about it. Its always difficult because we all are manipulated by society, and the slightest difference in personality makes for the biggest commotion. Well anyways, you can be told so many things, what is right and what is wrong. Sure, you listen to them, some of the advice youll take in and others just let it drift away. All in all, it doesnt ma tter what people may say, its what you feel what is right.Letter to a Young Poet, Letter 3 Always trust yourself and your own feeling, as opposed to argumentations, discussions, or introductions of that sort This I believe is the hardest situation, which is being able to trust yourself. We always have doubts if were ever good enough, and always making things into a competition. Where we should make things into a learning experience, and appraise others wisdom. When I began this school I would say that I was intimidated by the students the class, they were so talented.I doubted if I could really accomplish my goals that I had here in impertinent York and in Parsons. Later that day, I spoke to special people they lend me their ear and some advice. All I needed to do, all I still need to do is believe in myself, trust myself, know that my abilities are exceptional, and keep moving forward. Letters to a Young Poet, Letter 4 take int hate anything Hating is a very strong emotion, hatin g consumes the heart and you dont feel lots. Your mind when preoccupied by hate has nothing much to offer. Its an emotion that tiring, and hard to let go.When you learn you stop hating, your feel so relieved, and is at peace with the world. As a young girl, I scorned many things, and I had let it consumed my heart. When you hate you feel very alone, and you feel that no one is there for you, nor do you believe they will understand you. When I grew older I realize how much energy it took, how much it keeps you in the past. To move forward you must forgive, and relinquish your hatred towards things. If I hadnt my situation would be a lot different where life would probably be miserably for me.Letters to a Young Poet, Letter 5 But there is much beauty here, because everywhere there is much beauty In all the chaos of the world, in all the imperfections in the world, there is still beauty. I feel that people have to go through some tragic situation for once they encounter something diffe rent, they can find and appreciate the beauty that is presented to them. At least(prenominal) thats how I look at it, life is full of different shapes and colors, its very much easy to miss, but when I slow tear down time, Im able to see things that I couldnt see before.

Understanding The Process Of Laundry Detergency Environmental Sciences Essay

Detergency is a procedure where tails ar removed from substrate stuffs. It ever is reviewed and researched because of its commercial importance.Washing and groom is a complicated procedure because it involves interactions of much physical and chemical influence. In general, rinsing procedure contains remotion by aqueous surfactant source of palsied solute thing and disintegration of drosss from fabric protrudes 1 .2. PreliminariesBefore discoursing how detergents movement in rinsing procedure, we have to cognize how unordereds adhere to cloths and the different types of dirts.In the present, the substrate is a fabric norm each(prenominal)y, fabricated by knitting, weaving or blending in concert a bay window of fibres which have spun into narrations before incorporation into the fabric. Soil is aroundthing present in the matrix of the fabric but differs from the fabric fibres both in composing and form, while characteristically is of a comparable size.Dirt may be politic or solid. If it is liquid, it must be non-volatile and non-aqueous. The liquid dirt here is termed oily dirt to separate from the solid particulate dirt. These two types of dirts may happen together an external atom is more possible to adhere to fabrics when the latter already has liquid dirt. There are two chief differences amidst liquid dirt and solid dirt form and rheological belongingss. The greasy dirt alterations shape by and large while the particulate dirt holds its initial form all the clip 2 .No affair liquid or solid, both sorts of dirt adhere to the fabric because of a effect of Van Der Waals and interrelated interactions between the dirt and the substrate.3. Washing Procedure3.1 StructuresThe near important ingredients in detergents are chemicals called closeting agents.The word aaAsurfactantaaA? comes from aaAsurface active agentsaaA? and as defined, the news leak agents are chemical signifiers which tendency to concentrate or better to adsorb at interfaces, or to organize colloidal sums in solution at really low molar concentrations.As shown in mental image 1, it is obvious to bespeak the basic demand of wetting agents is combination of hydrophilic and aquaphobic parts in molecules, i.e. amphiphilic molecules.When the wetting agents dissolved in water system, they will prefer to hold an orientation that can minimise ominous interactions between hydrophobic molecular(a) subdivisions and aqueous stage ( Figure 2 ) .Figure 1 Structure of Wetting agentsBeginning pubs.caes.uga.edu/caespubs/pubcd/B1319/B1319.htmlFigure 2 Wetting agents dissolved in H2OBeginning slides of talksTherefore, there are several signifiers when wetting agents are in solutions ( Figure 3 ) .Figure 3 Different signifiers of wetting agents3.2 mechanismAs the cardinal construction of wetting agents mentioned, the lavation procedure is easy to explicate.To do H2O wash better, surface tenseness has to be reduced so H2O can wet things more uniformly. That is exactly what a wetting agent does. The wetting agents in detergents improve H2O s capableness to wet things, spread over surfaces, and ooze into soiled apparels fibres.Wetting agents do another of import occupation excessively. In the solution incorporating the wetting agents whose molecules adsorb on the surface of dirt and fabrics at the same time, the hydrophobic portion of their molecule is attracted to H2O, while the other portion is adhering to dirt and grease. Neither detergents nor soap accomplish anything except adhering to the dirt until some mechanical energy or agitation is added into the equation 3 . So the wetting agent molecules help H2O to acquire a compass of lubricating oil, interrupt it up, and wash it off ( Figure 4 ) .Figure 4 Illustration of the particulate dirt remotionIf the dirt is oily, it will scatter in solution as emulsion, while it is particulate, it disperses as suspension.4 ComponentsUsed for wash, the detergents ever contain wetting agents, builders, enzymes, d ecoloring agents, and other minor additives such as optical brighteners, fabric softeners, and scattering agents 4 . Among them, wetting agents and builders are the two most of import ingredients.4.1 Wetting agentsAs an abbreviation for surface active agent, wetting agents remain the most of import constituents for the development of cloth attention and place attention merchandises 5 , consisting from 15 % to 40 % of the entire detergent preparation 6 .Wetting agents utilise in detersive preparations can be classified into four groups harmonizing to the hydrophilic group non-ionic detergents, nonionics, cationics, and zwitterionics. In the usage of detergent composings, alkylbenzene sulfonates, alkyl sulphates alcohol ethoxylates, kats, and betaine are general, and biodegradable wetting agents such as APG and MES will be a development tendency in the detergent composings 4 . Nowadays, mixed active preparations are popular worldwide because they offer the advantage of good habitual presentation over a wider scope of wash conditions and let makers flexibleness with regard to surfactant bring home the bacon and demand 7 . Besides at the same clip the commixture helps to stay mile to the tegument of custodies.4.2 BuildersA possible builder should fulfill a big figure of demands including sequestering ability, alkalinity, buffer capacity, bleach compatibility, dirt deflocculation, unwritten toxicity, skin soaking up, oculus annoyance, effects on fish and other aquatic animize beings, and other environmental and economic practicableness 8 .We use builders to take Ca2+ and Mg2+ ions in difficult H2O and in dirts, for ever wetting agents can non work efficaciously in H2O particularly in difficult H2O. And the great sum of wetting agents in the detergent preparations increases the figure of troubles and the costs of sewerage disposal.Figure 5 Structures of polydimethyl siloxanes and their derived functions 4 We have ionic, organic and polymer builders 4 . In the Attic, Sodium tripolyphosphate ( STPP ) was the most used in the yesteryear. However, for phosphates can easy do a batch of environmental jobs that later, we use organic builders such as EDTA, NTA, ODA, IDA, and so on as a replacement for STPP. But still question their clean efficaciousnesss, inauspicious ecological or toxicological influences, and the cost. Besides, we use borates and zeolites as ionic builders, and forthwith multifunctional builder is demanded, such as superimposed crystalline silicate ( Na2Si2O5 ) which combines a high public presentation per unit mass with a high grade of multi-functionality 9 . Polymeric builders have good builder capacity but most of them are non of course biodegradable. So now a bio-based polyester co-builder, which is found to be non-toxic to aquatic life is invented 10 .4.3 EnzymesEncapsulated enzymes have been used worldwide for 40 old ages in detergent merchandises, particularly laundry preparations, and for biodegradab ility and functionality at low temperatures, its importance additions 11 . Enzymes can assist to better detergence, such as peptidase, amylase, cellulase, and lipase. Alkaliphilic Bacillus strains are oftentimes good beginnings of alkaline extracellular enzymes to be used in detergents 12 . Before people think enzymes in detergents ever cause allergy, but now this has been changed and substituted by the recommendation of carefully use by the practician.4.4 BleachsWe use bleaches to destruct unwanted discolorations on the cloth, and besides dyestuff in solution which causes hemorrhage. Laundry detergents typically contain percarbonate or perborate salts as bleach systems 13 . The bleach activity ever requires a suited temperature. For the energy economy and other restricts, scientists focus on new accelerators to make the same clean efficaciousness at a comparatively low temperature. However, at the same clip of decoloring discolorations, bleaches besides increase liquescent degree of the fabric 14 . As used in day-to-day lavation, we besides have to see the built-in toxicity and toxic by-products of decoloring additives.4.5 Other Additives about laundry detergents contain optical brighteners . These are fluorescent dyes that glow blue- snow-covered in UV visible radiation which can do yellowed cloths appear white 15 .Fabric softeners are to cut down the clash between fibres, and between fibres and the tegument. They are frequently a cationic wetting agent, which is attracted to the negatively supercharged substrates like proteins and many man-made cloths.Scattering capacity is a step of how a liquid stage influences a solid stage 16 . From some respects it decides the cleansing capableness. We add some scattering agents into the detergents to better the decreasing of the surface tenseness so increase the efficaciousness of detergents.5. DevelopmentScientists are concentrating on detergents for wash which are biodegradable, effectual, and low t oxic to clamber. Biosurfactants are possible the replacements for chemical wetting agents. Compared with chemical wetting agents, they are better in biodegradability and effectivity at utmost temperature or pH and in holding lower toxicity 17 . However, it is difficult to happen a balance between the hydrolytic and the biodegradability, non merely for the wetting agents, but besides for the enzymes and other additives in the detergents 18 . Now many biosurfactants are tested for utilizing in laundry preparations, as what Mukherjee AK 19 and Srokova I 20 have done.To salvage energy and H2O, there is a tendency of concentrated detergent, and besides it is environment friendly 21 . And different new sorts of additives are added as softeners, odor-removers, antibacterial constituents, and others which can give detergents multifunction.

Context reflects values Essay

Context is a clear reflection of the values of any earned run average, especially in Shakespeares canonical play crossroads. The events and characters in Hamlet embodies the historical context of shifting religions and political uncertainty that lead to a society imploding. Composed in the 1600s, the murder of a king and the ravishment of foreign power would have had busy resonance for the audience as there was an innate failed invasion of Britain by Spain and an attempted assassination in the move of Queen Elizabeth I. Additionally, the character Hamlet in this Elizabethan era represents the uncertainty of Christian values and the Renaissance need for restoring the ordained hierarchy.Hamlet was composed in a time of great political uncertainty in English history in which the Queen Elizabeth I had withstood an assassination attempt, a foiled ascension and a failed invasion by Spain. The events of Hamlet , in which a King is murdered and a country ultimately forfeited to foreign p ower, would have had particular resonance for an Elizabethan audience. This disorder can be seen through the garden imagery woven through the play unweeded garden in two months utterly. The disorder of the country is also seen through the incongruity of Gertrude and Claudiuss reunion Funeral bakt meals are coldly furnished forth the marriage tablesThe period in which Shakespeare wrote was one of explosive growth in knowledge. The Renaissance has seen a revival of Classical learning (reflected in references to Vigil in Hamlet), world exploration was challenged and revolutionising peoples conceptions of the origination with Ptolemaic heliocentric (sun-centered) model. Though Hamlet is an appropriation of a story told by Saxo Grammaticus, the Revenge Tragedy prototype of Thomas Kyd and the Senecan Tragedy, Shakespeare transcends early(a) tragedies by creating a protagonist that is more complex as Hamlet is a revenge hero that is reluctant to avenge. Through his inner conflict arisin g from his sad flaw- procrastination, Hamlet represents the dichotomy of Christian values and the Renaissance need for order in the Elizabethan era. This conflict is crystallised in the Prayer Scene (III,iii)when Hamlet is passing through to his mothers room when he comes upon the kneeling Claudius and recognises that he has an opportunity to kill him.He decides not to since, he reasons, if he kills his uncle at prayer Claudius will go to heaven and not to hell that would be poor revenge. However, according to A.C. Bradley, this is Hamlets fatal flaw procrastination as Hamlet tries to convince himself that this is his duty Why, this is hire and salary, not revenge, yet is moral code prevents him from avenging. To this point, the audience is convinced that even if Hamlet was to kill Claudius at prayer, Claudius would not go to heaven like what Hamlet had thought because of Claudiuss ironic couplet My words fly up, my thought remain below/ rowing without thought never to heaven go .Hamlets conflict is also caused by his humanitarian self, denoted through his soliloquies and paralleling the age of enlightenment. In his soliloquy, he debates the gallant doctrines that demand for a son to absolve his fathers murder with conflicting Christianity. In a bitter tone, his despair is denoted through self-laceration lecherous, kindles villain. notwithstanding this is again an excuse for procrastinating as his frustration at thought prevails over any kind of resolution.In conclusion, it is obvious that the values of any era are reflected through its context. The events and characters in Hamlet mirrors the innate instability and religious upheaval of the 1600s.

Regulatory framework for financial reporting Essay

IntroductionIn the next couple of pages the author exit firstly discuss the main(prenominal) advantages of the crossroad growing sufferance of IFRS, and how does it particularly benefit investors and managers. The author will also be discussing the most signifi undersurfacet challenges of the adoption and elaboration of the IFRS in the future. Further more the author will, suggest how the IASB and its key constituents should face these challenges and overcome them.IFRS International Regulatory framework for financial reporting sooner we get into discussing the advantages of IFRS let us first begin with a little introduction about what IFRS actually does. Regulatory framework for financial reporting was intentional in order to form a sort of common language that businesses and companies accounts are clear and comparable in international environments. This has started as a take of expanding of international trades and shareholding. This governance has been particularly welcomin g by companies that are operating in several countries. This is due to the fact that by adopting the same formation companies can easily compare and view their financial statements. The IFRS was fist introduced to the European Union in order to governanceatize history standards. This concept quickly became popular change surface outside of the European union and was adopted by countries all over the world. Globalization is a great factor why IFRS is being adopted by countries outside the EU, as accounting can be though of as a language form and if all companies report under the same regulative framework communication between them is much clearer and faster. Between the old age of 1970 to 2001 a different account system was used known as International be Standards (IAS). By April first in 2001 a new international Accounting Standard Board was introduced and they bedevil adopted the already existing IAS system and developed the standard as well as renaming it to IFRS.Advantag es of the crossroad growing adoption of IFRSIn the researchers opinion the IFRS is highly important, or in early(a) words unspoilt for managers nowadays, because it energizes a lot of things easier. You can compare it to a Border free Europe through the European Union. With the IFRS managers have an international accounting handbook which runs merges and acquisition for international companies easier because there is only one accounting language. As already mentioned earlier not all countries have adopted the IFRS system. Due to increasing globalization most companies are pro adopting the IFRS system as investors or in other words users can easily understand it across the world. Even onwards the International Regulatory framework for financial reporting was introduced was companies used different Generally Accepted Accounting Principles (GAAPS). As Europe has its most dominant system used the (IFRS) so does for example India and the US have their own systems that they choose t o adapt. The fact that there are different financial systems involved can make it difficult for an outside user, since they cannot fully understand the financial reporting system that is adopted by another artless.Nowadays with the increasing number of global investors and learning exchange there is an increasing need for common financial reporting language. The International Accounting Standard Board have accomplished that 120 countries general have adopted the IFRS system and made it the single set of standards. An advantage for adopting this system would be simply the strengths of jurisdiction increase. Some countries had no troubles with this but other chose to take different paths. The first major adoption of IFRS was in 2005 when 7000 EU countries began using the new system. Japan has adopted this system a couple of years later and by 2009 the IFRS was officially engageed. On the other hand still a large number of countries have not adopted this system amongst them is U.S that has notable a 10th anniversary in 2010 of the ISAB system. Still we can see an increasing pattern of countries that are adopting the IFRS regulations. Of course U.S has its reasons for not accepting the IFRS system and they themselves have described their system as exhaustive and they are as well dealing with a lot of difficulties and sensitive subjects such as pension accounting or lease accounting.Of course this system has a lot of benefits. As many of its standards the IASB has lead the use of a sporty value accounting system as an replacement to the traditional cost accounting. The greatest benefits of this system are that its considered to be morerelevant and transparent. A lot of countries could not accept the IFRS system completely due to their local politics or other economical reasons. Some countries on the other hand have adopted the system completely for example Australia or Japan. Other countries accepted the system partly just for specific segments such as Banki ng. China and U.S have also in the end made their adjustments to convert to IFRS in order to remove differences between national accounting standards. Even big audit firms that included Deloitte, PWC (PricewaterhouseCoopers), Ernst & Young and KPMG have agree that by replacing the local system with the IFRS was a solid way of insuring international comparability of financial statements. The fact that this was accomplished shoves that accounting worldwide has reached harmonisation and this is a great advantage for companies and users worldwide. convergence champions like China, rather want to have the Convergence, because they want to remain flexible and adapt the accounting rules to the particular inevitably of the national economy. This is done so that they can keep an eye on the local economy.The Chinese government also fears that Chinese companies could use this as a tool to manipulate with reported profits. There are more then one negative aspects of the IFRS such as strategi c tension on fair value accounting. This type of accounting has been greatly criticized as for being difficult to apply as well as subjective mostly in naughtily developed markets. Fair values also seemed to be more involved with the short-term conserves and this put the long-term stability of businesses and even economy at risk. The problem with fair values was that due to short-term recording that were increased temporally in market values in financial reports. This was a problem as it created panic by forcing reduction in the book value of an asset. Gilles de Margerie (CFO of the French Bank Credit Agricole) says The IASB has been too dogmatic, too reluctant to listen.The main problem was that the fair value measurement of derivatives required by IAS could know the income statement of many EU-Firms. In the year of 2004 the European commission has for some time being excluded the disputable parts of IAS 39 from its agreement. Even though there were problems with the IFRS it is b eing worked on and the imperfections are being corrected. Another negative aspect of the IFRS is that the IASB stakeholders beseech that fair value standards for banks financial reporting have inflated their asset values in the economic boom times and due to that overstating their losses when thefinancial markets collapsed. So practically their cant be global banking regulation if there are different accounting systems. Due to this fact the IFRS can no come through its full potential. This imposes a lot more debatable questions on the IFRS regulations.Should it put more stress on full adoption or convergence with its IFRS rules?Should it make more adjustments to make it easier for the U.S. to join the system?In addition to IFRS should it also focus on harmonizing enforcement and auditing systems?1 If we find answers to this questions and find regulations that say that every country is running with this system the IFRS mission will be a very difficult task, because like already Ian Mackintosh, head of the U.K. Accounting Standards Board said Convergence is an impossible dream. You will always find issues where you basically do not agree and where both sides have good reasons for not agreeing. You have to make decisionsdecisivenessIn this assignment the author has discussed the main advantages of the crossroad growing adoption of the IFRS, and how it particularly benefit investors and managers. The author has also discussed the most significant challenges of the adoption and expansion of the IFRS in the future. Further more the author has, suggested how the IASB and its key constituents should face these challenges and overcome them. In the authors view there should be a adequate balance lay down between the IFRS standards and the convergence of other countries that did not adapt this system. This should be done, as it would be convenient for everyone of the standard were similar in some ways.ReferencePrague College Login to the site. 2013. Prague College Log in to the site. ONLINE getable?at http//courses.praguecollege.cz/mod/resource/view.php?id=50815. Accessed 15 March 2013. Understanding IFRS convergence YouTube . 2013. UnderstandingIFRS convergence YouTube . ONLINE Available athttp//www.youtube.com/watch?v=zalWNtILbKY&feature=related. Accessed 15 March 2013.

Economic value Essay

There argon two economic concepts integrated in the constancy of ecotourism economic impact and economic value (Lindberg, Kreg, 1996). Economic impact, agree to Lindberg, refers to the changes in the figures of sales, income and jobs that ar generated or directly derived from the practice of ecotourism. Economic value on the other hand refers to the habitual effect of ecotourism in the economy of the region as a whole.Lindberg also explained that the impact of ecotourism is more evident and more positive in remote regions where more jobs and income are enjoyed by residents especially in champaigns where there is limited access to lesser alternatives for income generation. The application of ecotourism has accumulated gazillions of dollars for different local governments and as such has been one of the healthiest industries worldwide. In fact the International Ecotourism companionship reported that that it has been growing at a 300 percent rate compared to the whole industr y of tourism (Mellgren, Doug 2007).Like any other industry, ecotourism entails costs and benefits that practitioners abide to carefully crusade. What is distinct with this industry is that its costs heavily depend on natural resources and the management of them. With such feature, the resources of the industry are very limited and is exactly impossible if not completely impossible to manually or even with technology to proliferate. For example, we cannot make another forest once a forest area has already been damaged. We cannot dig another beach or ocean once the other has already been severely exploited.The industry therefore requires extra careful management. Ecotourism is an illuminating nature travel experience that contri just nowes to conservation of the ecosystem, while respecting the integrity of host communities (Canadian Environmental Advisory Council 1992). This definition of ecotourism suggests several principles that should be implyd in the industry (Wight, Pamela 1993) 1. There should be environmentally sound development which requires that there be no humiliation of the natural resources by all means 2.There should be proper education availed by the participants in the industry which include the government, the NGOs, the tourists and the community 3. There should be a respect of the environment and its intrinsic value which extends to the scholarship of its limits 4. The industry should encourage the partnership of all the players 5. The partnership of the players should promote ethical, cultural and social responsibilities of each 6. There should be a serious consideration of the long-term benefits and impacts, both economic and non-economic, in the industry and the community and7. There must be a responsible conservation practices to the internal and external operations of the industry. The industry of ecotourism can be the operation of nature sports like skiing, surfing, and recreational boating. It may also involve the exploration o f the highlands like hiking and trekking. The industry may also involve the operation of maintaining or developing ecoparks in the forests, in the ocean and the highlands. In any of these, the industry involves a great deal of economic, environmental, cultural and social responsibilities. ECOTOURISM AND SUSTAINABILITYThe general issue that is faced by the industry of ecotourism is sustainability. Because a great deal of natural resources is directly involved in the operation, experts in the industry, operators and practitioners are being challenged to weigh the cost and benefits of getting into the cable of sports and recreation involving nature. Sustainability dictates that the benefits should outweigh the cost of using natural resources. Sustainability therefore entails the consideration of the short-term and long-term effects of exploring the environment.In the industry of ecotourism, the alteration or use and even the disturbance of the ecosystem and biodiversity are a necessit y. Any slight or serious effect of any of these means a sacrifice on the part of the living organisms in a certain ecosystem. Sustainability requires the industry professionals to carefully calculate and if possible to find an assurance that the costs of sacrificing the natural resources will be exceeded by the benefits that can be derived from it. It is to be stressed that the calculation should include the long-term effects of doing the business.Therefore profitability does not picture sustainability nor does economic development entail sustainable development. ISSUES ASSOCIATED WITH ECOTOURISM A. The business of Ecotourism has placed profit motivation of higher importance than environmental conservation We cannot deny the fact that the advancement and development of ecotourism waste been products of profit motivation for Ecopark developers and investors. The business of establishing and maintaining tourist spots require a considerable sum of money, knowledge and skills and th erefore it is but sporty for investors to claim the economic benefits of such investment.The market of ecotourism has been undoubtedly growing and gaining popularity like the joined State, Australia and Thailand. In fact the World Tourism Organization estimates that there have been 500 million annual tourist trips conducted worldwide (World Tourism Organization, 1994). In the United States, the industry of ecotourism is dominated by private owners although are also government owned and managed tourist spots (U. S. Department of State, 2003).The economic benefits of the healthy market of ecotourism is overwhelming that tourism and recreation have actually contributed to 3. 3% to 4. 1% of the United States Gross Domestic Product (GDP) in 1997 according to the US Department of State report. The leisure of nature traveling since 195 was reported to have been growing at an annual rate of 15% to 30% according to World Resources Institute. The attractive economic benefits of ecotourism in dustry can plainly explain the sudden proliferation of such in private owned parks and recreation centers.What is however alarming is the fact that there seem to have been outweigh of economic benefits over the cost of environmental degradation not to mention the negative cultural impacts. In Thailand for example, the government has been blinded by the 53 million baht yield of the trekking in Northern Thailand from nigh 100 thousand trekkers per year. The over-visitation and commercialization of the hill tribe villages have considerably damaged nature through the construction of permanent huts to accommodate trekkers and littering due to the accessibility of foodstuffs.The worse scenario is the transfer of such businesses to other mountain areas thereby destroying more of the natural habitat in the mountains of Thailand (Tourism Authority of Thailand 1996). In response to this issue, the government and non-government bodies have been organized to serve as guardians and monitoring eyes of the environment while maintaining the business of ecotourism. It is held important for recreation professionals, especially those engaged in ecotourism to coordinate or work in partnership with these environmental groups and authorities.In Thailand for example, the Tourism Authority of Thailand (TAT) has regulated the tourism visits in the area for study, to enjoy the scenery and for cultural studies. In California, the local government assigned the California Trade and Commerce Agencys Division of Tourism in the responsibility of taking over the business of looking into the sustainability of ecotourism in the area. Partnership with these agencies, especially when professionals are into private business, will help in the drafting of programs for business development.For example, if recreation professionals are well assured with the affairs and regulations of the local government agencies, future or possible conflict of interest will be avoided. Even if professionals are fac ed with the impression that they are reaping the economic benefits of ecotourism, partnership with the local environmental agencies will help ease the issue. This of course entails that professionals has to really account and seriously consider the environmental impacts of every activity in order for the business to last long rather than exploring another area when the former has already been damaged.Primarily, environmental and social responsibilities are major considerations in the practice of any profession. B. There has been observations that larger companies tend to be environmentally conscious than wasteder counterparts. Watercraft, recreational boating, shark chumming, wind and water surfing are the sports and recreational activities that are active in California. Whether these activities are engaged for fun or for serious water sports, the facilities involved in the said activities necessitates considerable standard of dollars.It is therefore but logical that those who ca n afford to spend much for the proper maintenance of their own facilities are bigger companies. However, this is not the case in Malaysia as golf game course development has been one of the major environmental issues faced by the concerned professionals. Golf course development or golf course tourism, being a sport enjoyed by the wealthy people is a multi-billion dollar industry. Forest degradation, water and land pollution issues are embraced by the tourism industry.An analysis made by an economist revealed that an 18-hole golf course consumes 5,000 cubic meters of water everyday costing Malaysian government $7. 5 million for the pipelines that feed water to the golf course resort in Redand Island (Chatterjee, Pratap 1993). Agrochemicals averaging to 1,500 every year are being used annually in such capital courses, 90 percent of which contribute to air pollution. Pesticides and fertilizers account for the massive destruction of marine life aside from the deforestation and soil ero sion caused by the governing of such recreational and tourism sites.The challenge therefore is not the accumulation of much economic resources in order to support proper maintenance of their facilities but the challenge of taking social and environmental responsibility. The burden of immediate action against these environmental problems is placed primarily in the hands of the government who has always the compulsory power to draft and pass laws that will regulate such activities. The involvement of the government in ecotourism will ensure that everything and everybody will work together for a well balanced ecosystem.This writer believes that banning environmental recreation and tourism will help solve the existing environmental degradation. Ecotourism, whether owned and managed by the government, small and large companies, professionals are faced with the challenge of ensuring that every business endeavor is environment friendly regardless of the economic benefits it contributes t o the locality. Rules and regulations must be implemented and everyone is compelled to obey.

College Goals Essay

Attending college is the first step to a better future. Throughout life there will be many refinements to accomplish exactly some of the roughly important goals to accomplish will be during the time you are in college. My first goal is to pass every class this semester. after(prenominal) complemental this goal my next goal to complete will be to graduate from Hudson County Community College with an Associates Degree in Liberal Arts. finally my last goal to complete is to further my raising and get the job I want.Passing every class this semester will avail me feel arbitrary and confident about my future and future goals. In order to complete this goal I will hurl to mind every class and be on time. By missing one class I will miss out on a lot of expire and may not be able to catch up.I will have to finish every assignment on time because if I write the best move I could maybe write but hand it in late, my grade will drop dramatically. Finally I will have to ask for hel p if I need it. Even though it is my first semester of college and I do not know what to expect, asking for help is easy and can help amend my college experience.To be able to obtain my Associates Degree in Liberal Arts by August 2015 I will have to work harder than I ever have. I will have to be sure to complete all my assignments and be sure to attend all my classes. I will have to put school first in life and avoid activities that will have a negative impact on my education. Prior to achieving this goal I also want to choose the career I want so I can know what direction my life is going.My final long-term college goal is to go on to obtain my Bachelors Degree and possibly my Masters Degree, depending on the career I choose. I have not chosen the career I want yet but I want to have the best education possible to qualify me for the job. To be able to obtain the best education possible I want to keep my grade point average high and be able to attend a good university.I have not really thought about all the details since I have not chosen a career yet but I am going to better my education as much as I possibly can. After completing all my education I will have the job I want and be happy and financially stable.In conclusion, my college goals are some of the most important in my life because they greatly help shape my future. By passing all my classes this semester I will have the confidence to continue my education and do well. By obtaining my Associates Degree I will be able to go on and obtain my Bachelors and possibly Masters Degrees. And finally when I finish completing all my education I will be able to get the career I want and be happy with my life. My entire future depends on the choices I make in college.

Media Studies – make a music video

For our coursework we judged to make a music impression, based on our original musical theme of a Jackass style program. Jackass is a programme of various dangerous and stupid stunts, which are all a bit different. We decided against this idea as it restricted our power to change it into an original concept.We decided to make a music video exploitation a punk song, as these have a very broad band of what can be include.We started by making a song in the style of a well known band, swank 182, but we changed it to incorporate our life at college. We are loosely basing it on a theme of our college life but at the different extremes.We are using what Levi Strauss called Binary Opposites, these are extreme diametricals, for example a bad guy being ugly and a good guy being extremely attractive.We are using the Binary opposites of maturity and immaturity, which is a basic college idea, the mature students that do their work and the immature students that joke about and dont take th ings seriously.We thought of things that would be included in a punk music video, we had the idea of the band rehearsing in a music room and being very professional about it and so came up with the opposite which is practicing in the refectory and playing random objects rather than proper instruments.Another idea we had is spending time leisurely we had the idea of a radical of people sitting nearly playing cards with the comparison of them all running around like mad brandishing water-guns and having a play fight.The next wiz is also a leisurely activity, playing foosball at the table in the refectory comparing it to doing reckless skating and crashing into each other.We then thought back to the programme Jackass and one and only(a) of their famous sketches is the presenters being pushed around in a shopping trolley. We thought of using this but needed a binary opposite to go in it so we thought of having someone pushing the trolley quite normally with shopping in it.Also just walking around college, the band walking down a corridor and turning around a corner with them running down the corridor in the underpants and running into the girls toilet.These give off a lot of ideas of the maturity and immaturity of college.We thought of using the phrase that we had heard a lot from the show South Park, whenever there is drugs or alcohol involved, one of the characters, Chef always says There is a time and a place for everything, and its called college and thought that we could relate this to the video.Another idea we had was using the Kuleshov Effect, where we would take shots of random things such as people talking chilling out and people running around like mad and pulling faces.The themes we are using are Jackass, The Teenage geezerhood and a parody effect of Blink 182 videos.We are also freeing to have parts of temporal disorder in the video, using the video effects on my camcorder, this will give the impression the person watching is on drugs because th e song is related to this, although we will show no shots of drugs or anybody taking drugs as this would be to suggestive, we are only giving hints of teenage life but not actually sho adoptg all angles.There is no actual plot line to have a linear narrative to the video, its more random as this is what college is like despite being a regulated day, anything can happenThe idea of using teenage life although is very common is so broad that we can change it to our own tastes and use our own characters in it. The whole video is supposed to be a joke filled, fun and non-serious which is the whole idea of punk rock, a lot of songs are just parodies.We are also going to have lots of shots of the band so people can see them and know who is playing. Bands do this so they can see who is performing and identify with them and decide who is their favourite. Sometimes they can pretend to play roles which can lead on to a narrative in the video, taking for example, Sum 41 in their In Too Deep vid eo they have the lay about band, with the jocks fighting against each other in a diving contest, we want the band to win which is made in a binary opposite the baddies are made to be Speedo wearing narcissists and the band wearing any old shorts and not particularly full of themselves. This is the kind of effect we want to achieve with binary opposites.

The Chinese Fireworks Industry

THE CHINESE FIREWORKS INDUSTRY rewrite Ruihua Jiang wrote this case under the supervision of prof Paul W. Beamish solely to provide hooey for socio-economic secern discussion. The authors do non intend to illust identify either mental pictureive or ineffective handling of a managerial situation. The authors may have disguised certain names and new(prenominal) identifying information to protect confidentiality. Richard Ivey schooling of Business Foundation prohibits whatever form of re output signal, storage or transmission without its written permission. Re cropion of this material is non c ever soywhereed under authorization by any reproduction rights organization.To order copies or pass permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of atomic number 74ern Ontario, London, Ontario, Canada, N6A 3K7 phone (519) 661-3208 fax (519) 661-3882 e-mail emailprotected uwo. ca. right of first state-supportedat ion 2011, Richard Ivey School of Business Foundation Version 2011-09-21 In February 2009, Jerry Yu was spending the Chinese New Year holidays in Liuyang (lee-ou-yang), a city cognise as the home of rousecrackers and fireworks, located in Hunan Province in china.Jerry was an alphabet (America-Born-Chinese). With an MBA, he was reapning a sm any family-owned chain of gift stores in Brooklyn, New York. Liuyang was his mothers hometown. During his visit, his relatives invited him to invest in a fireworks factory that was owned by a village. Mr. Yu had been impressed by the uppity fireworks shows he had seen during the festival however, he wanted to assess how attractive the Chinese fireworks perseverance was to begin with he point looked at the financial details of the factory. HISTORY OF FIREWORKS AND FIRECRACKERSFireworks refer vehement to any devices designed to produce visual or audible effects with combustion or explosion. The art of devising fireworks was formally know n as pyrotechnics. Firecrackers were a specific kind of fireworks, normally in the form of a noisemaking cylinder. Firecrackers were often strung unneurotic and f employ consecutively, a staple of Chinese New Year celebrations, weddings, grand openings, births, deaths and other ceremonial occasions. The of import ingredients of fireworks had re primary(prenominal)ed al approximately the similar all over the past thousand years 75 move-byweight potassium nitrate, 15 parts charcoal and 0 parts sulfur. It burned briskly when lighted, but did not erupt or instal any noise. When it was found that a projectile could be thrust out of a barrel by keeping the powder at one end and igniting it, black powder became known as gunpowder. Today, smokeless powder has replaced black powder as the propellant in modern weaponry, but black powder remains a main ingredient in fireworks, twain as a propellant and as a bursting charge. It was commonplacely believed that the Chinese were the firs t makers of fireworks.The Chinese make war rockets and fickles as early as the sixth pennyury. single legend said that a Chinese cook, while toiling in a field kitchen, happened to mix together sulfur, charcoal and saltpetre, and noticed that the pile burned with a combustible twinge when ignited. He further discovered that when these ingredients were enclosed in a length of bamboo sea take at both ends, it would explode rather than burn, producing a loud crack. This was the origin of firecrackers. In fact, the Chinese word for firecrackers bao-zhu literally representation exploded bamboo. foliate 2 9B11M006The loud reports and burning fires of firecrackers and fireworks were found to be perfect for frightening tally evil spirits and celebrating good bare-asseds at various occasions. For more than a thousand years, the Chinese had been seeing off past years and welcoming in new ones by pink slip firecrackers. Fireworks do their way first to Arabia in the seventh centi meimeury, then to atomic number 63 any(prenominal)time in the mid(prenominal)dle of the thirteenth century. By the 15th century, fireworks were widely used for religious festivals and general entertainment. Most of the early pyrotechnicians in Europe were Italians. blush today, the best-known names in the European and American fireworks pains were Italian in origin. From the 16th to the eighteenth century, Italy and Germany were the two best known expanses in the European continent for fireworks debunks. In 1777, the unify States used fireworks in its first independence Day celebration, and fireworks have cash in ones chips closely associated with July Fourth celebrations ever since. Up until the 1830s, the colors of the early fireworks were limited, but by 2009, at that place were six basic colors used in fireworks.LIUYANG THE HOMETOWN OF FIRECRACKERS AND FIREWORKS fit in to historical records in China, firecrackers and fireworks emerged during the Tang dynasty (618-907 AD), flourished during the Song Dynasty (960-1279 AD), and originated in Liuyang. For more than 1,000 years, Liuyang had been known as the hometown of firecrackers and fireworks of China, a human activity that was officially conferred to Liuyang by the State Council of China in 1995. As early as 1723, Liuyang fireworks were chosen as official tributes to the imperial family and were sold all over the country.Exports started early by 1875, firecrackers and fireworks were being shipped to Japan, Korea, India, Iran, Russia, Australia, England, the U. S. , and other countries. In China, the name Liuyang had become almost synonymous with firecrackers and fireworks. Liuyang-made firecrackers and fireworks won numerous awards over its eagle-eyed history of fireworks making. The yen history and tradition had made fireworks more than just a livelihood for the Liuyang nation. just about e really inwrought person in the area knew or sothing intimately fireworks making, or had genuine ly made firecrackers or fireworks in their lifetime.As a result, Liuyang claimed an impressive pool of adept labor. Firecrackers and fireworks had become the pillar labor of Liuyang, accounting for nearly 50 per cent of all jobs or about one-third of the total population in the Liuyang District (including Liuyang City and the meet counties). In 2008, Liuyang claimed 2,702 fireworks manufacturers with an additional 2,144 in the surrounding area. In total, there were 6,458 fireworks producers in China. While there has been or so trend towards consolidation in the industry, most factories were still owned either by villages or families.Among them, about a dozen or so were medium to large factories with employment between 100 to ergocalciferol workers. The rest were footling workshops employing anywhere from 10 to 50 people, depending on grocery demand. Liuyang was the top fireworks exporter in the world, making up 60 per cent of global production. The trademarked brand Red Lante rn had become comfortably known to fireworks-lovers around the world. China now accounted for 89 per cent of worldwide fireworks exports with the vast major(ip)ity of that coming from Liuyang.In addition, over the past ten years, China had become the largest grocery store place for fireworks. The ratio of national use to exports was 64, and Chinese imports of fireworks were negligible. Page 3 9B11M006 The growing in demand in the Chinese foodstuff had scarce step up the ambition. All new demand was more than met by the Chinese fireworks industry. Thus, instead of seeing developmentd margins, the remuneration margins for many small manufacturers had shrunk over the past decade. In order to make up the difference, manufacturers were cutting corners.However, virtually of these cost cutting efforts came at the expense of asylum. A 2007 factory explosion that left 11 workers unfounded was blamed primarily on decr jutting base hit standards, which were blamed on a lack of coin due to cut throat argument. In response, the organization and company officials from Luiyang and surrounding areas agreed to regulate the charge of fireworks with the hope of increasing profit margins. With senior high schooler profit margins, company officials vowed to increase workers safety. The Product Fireworks could be assort into two categories display fireworks and consumer fireworks.The display fireworks, such as aerial shells, maroons, and large Roman candles, were meant for professional (usually licensed) pyrotechnicians to fire during large public display shows. They were devices that were designed to produce certain visual or audio effect at a greater height above the ground than the consumer fireworks, which the general public could purchase in convenience stores and enjoy in their own backyards. Display fireworks were known as Explosives 1. 3 (Class B forward to 1991) in the U. S. The consumer fireworks belonged to Explosives 1. 4 (Class C prior to 1991).Th e difference lay mainly in the metre of explosive components contained in the product. Canada had a similar classification system. In the U. K. , it was more carefully divided into four categories interior fireworks garden fireworks display fireworks and display fireworks for professionals only. There were many varieties of fireworks. Liuyang made 13 different types with more than 3,000 varieties. The major types included fountains, rockets, hand-held novelties, nail and hanging wheels, groundspinning novelties, jumping novelties, floral shells, parachutes and firecrackers.Historically, firecrackers made up 90 per cent of the total production and gross revenue agreements. Over the past 50 years or so, however, there had been a crack away from firecrackers to fireworks. In 2009, firecrackers made up less than 20 per cent of the total sales. The skill levels of fireworks-making had been greatly improved. For instance, the old-day fireworks could r distributively no more than 20 me tres into the sky, while the new ones could go as high as 400 metres. Not much had changed in fireworks-making. Over the last few decades, numerous novelties were added to the fireworks family.However, innovation had neer reached beyond product variations. The ingredients had remained more or less the same. The process technology had not changed much either, although some manual processes, such as cutting the paper, rolling the cylinders, mixture powder, and stringing the cylinders could now be done by machines. Safety Issues The fact that fireworks were made with gunpowder and listed under explosives brought about the issue of safety. Numerous accidents related to with fireworks had resulted in tragic human injuries and considerable property damages.As a result, fireworks had become heavily regulated in most countries. Page 4 9B11M006 According to the manufacturers, fireworks were the most dangerous during the production process. Powder mixing and powder filling, in turn, were t he two most dangerous procedures. The workers had to abide by strict safety measures. Even a petty spark caused by the dropping of a tool on the floor or the dragging of a chair could start a major explosion. The quality of the ingredients was also of significant importance. Impure ingredients could greatly increase the possibility of accidents.In Liuyang, almost any year, there would be one or more accidents that resulted in deaths and damages. With an ever increasing number of firms entering the industry, safety was an ongoing concern. Once the fireworks were made, they were relatively safe to transport and store. Even in firing, good quality fireworks rarely caused any problems if everything was done properly. Most of the fireworks-related accidents occurred during private parties or roadway displays, and quite often involved children playing with fireworks that needed to be handled by adults, or adults firing shells that required professional expertise.Most accidents were li nked to consumer backyard events rather than to public displays. According to the United States Consumer Products Safety Commissions (CPSC) data, injuries related to fireworks had declined substantially, even though their use had increased (see give away 2). For 2009, there were an estimated 5,244 fireworks-related injuries, 30 per cent of which were caused by firecrackers and feeding bottle rockets. Of all the injuries related to firecrackers and fireworks, most were treated in the emergency department. Eight per cent of patients had to be admitted to hospital, and 7 people died due to sustained injuries.Children from ages five to 14 were the most frequently involved in fireworks-related injuries. However, fireworks were not the only consumer product that might cause injuries to this age group. According to a 2008 CPSC Injury Surveillance Report, fireworks were actually safer than swing implants and baseballs. However, fireworks-related injuries were usually the most dramatic an d the most widely publicized accidents, which partly explained the fact that fireworks was the only category among the products listed in Exhibit 3, for which prohibition, instead of education and adult supervision, was often urged.In the United States, multiple organisation agencies were involved in regulating fireworks. The Bureau of Alcohol Tobacco and Firearms (BATF) controllerled the manufacture, storage, sales and dispersal of explosives, i. e. , Class B fireworks. The CPSC regulated Class C consumer fireworks, and the section of Transportation dealt with the transportation of fireworks. Although at the federal level, fireworks and firecrackers were take into accounted as long as the safety features were up to the standard, local governments would have their own different regulations regarding fireworks consumption.Out of the 50 states, one would al minor only novelty fireworks, 5 had banned all consumer fireworks but allowed professional pyrotechnics, and 4 allowed custom ers only fit out or wood stick sparklers and other novelty items. However, the remaining 40 would allow essentially all consumer fireworks. For display fireworks, permits would have to be obtained from federal and local authorities and fire departments. All ratified consumer fireworks offered for sale in the United States had been tested for stability by the Bureau of Explosives and approved for transportation by the U. S. Department of Transportation.Because of the limited amount of pyrotechnic composition permitted in each individual unit, consumer fireworks would not ignite impromptu during storage, nor would they mass-explode during a fire. Therefore, no special storage was required. In most of Europe, similar regulations were in place for safety considerations, only the requirements were regarded as less stringent. In Canada, however, regulations were extremely restrictive. However, over the past decade Chinese fireworks companies had made great strides in the Canadian marke t. In 1999, there Page 5 9B11M006 were no Chinese companies allowed to sell fireworks in Canada.By 2009, over 75% of all fireworks imports to Canada were from China. THE FIRECRACKERS AND FIREWORKS INDUSTRY IN CHINA The firecrackers and fireworks industry in China was dominated by small family-owned-and-operated workshops. It was essentially a low-tech, highly labor-intensive industry. After 1949, government-run factories replaced the family-owned workshops. The increased overcome and government funds made possible the automation of some processes. However, the key processes care installing powder, mixing color ingredients, and putting in fuses, were still manually done by trained workers.The factories themselves were made up of small workshops that stood away from each other, so that in case of an accident the whole factory would not explode. For the same safety consideration, the workshops were usually located near a water source and in sparsely populated rural areas, to reduce the noise and explosion hazard. After the reform towards a market deliverance started in 1979, most of the factories were broken up and became family-run units of production again. It was hoped that this privatization might help to motivate people to increase their productivity and raise output.However, this move also served to restrict further technological innovations. There were hardly any research and development (R&D) facilities, nor human and capital resources allocated to R&D in most fireworks companies. The few resources that were unattached were all spent on product varieties. Even in Liuyang, out of the 400,000 or so people working in the industry, very few were engineers with advanced professional training. In response, the Hunan and other local governments began initiatives aimed at upgrading the tralatitious fireworks industry. Substantial amounts of money were spent on R&D.The Liuyang Firecrackers and Fireworks Authority reported that they had spent RMB 2,000 bill ion in projects with the Beijing University of Technology and the Nanjing University of Science. Among these initiatives were environmentally friendly fireworks, which used cold flame fireworks technology. The majority of the manufacturing workers were unceasing farmers who had learned how to make fireworks just by watching and following their elders. They would come to work in fireworks workshops when there were jobs to be done, and return to till their fields if there were none. In Liuyang, for instance, few factories operated year-round.Most workshops would operate as orders came in. Since the fireworksmaking communities were very concentrated geographically and had lasted for generations, only a few places (like Liuyang) could claim a large pool of skilled fireworks-makers. Although Liuyang was by far the most well-known place for making fireworks in China, it faced increasing competition within the country. Also located in Hunan Province, Liling was another major manufacturing community of fireworks. Liling fireworks did not enjoy the same reputation and variety as Liuyang products, but they were fierce in take to be competition.In the neighboring Jiangxi Province, Pingxiang and Wanzai fireworks had become fast(a) competitors both in price and quality, especially on the low- and medium-priced market. In the high-end product market, especially in large-type display fireworks and export market, Dongguan in Guangdong Province, had taken advantage of its closeness to Hong Kong and more sophisticated management and marketing practices, and snatched market package from Liuyang. By 2009, however, more than one third of all firms and 60 per cent of Chinese production remained in Luiyang.Page 6 9B11M006 The initial capital requirement for starting a fireworks-manufacturing facility was relatively low. To set up a factory with the necessary equipment for making large display shells would require around RMB1,250,000. 1 However, setting up a small family worksho p making consumer firecrackers and fireworks would require less than RMB125,000. Consequently, the number of small manufacturers mushroomed after the government started to encourage private business ventures. While labor cost in the area were still low, they were steadily increasing.As a result of Chinese economic growth, wages had almost doubled over the past 5 years. This was in part because many workers were moving into less dangerous occupations. Skilled workers employed in major processes would earn an average of RMB1,200 to RMB1,800 per month. A non-skilled worker would be paid only RMB500 to RMB700 every month. In larger factories, labor costs were between 20 and 30 per cent of total costs. The main raw materials for fireworks were gunpowder, color ingredients, paper, fuse and clay soil. None would be ticklish to procure.However, because of the growth in the Chinese domestic fireworks market, costs of raw materials were steadily rising. Another possible problem in supply wa s quality. major(ip) manufacturers would usually establish long-term relationships with their suppliers to guarantee the quality of the materials. The small workshops would often go with the lowest prices, sometimes at the cost of quality, which could lead to fatal results. The number of small companies intensified competition. The private workshops were flexible and lively in responding to market demand. They did not entail much administrative cost.Compared to governmentowned or some collectively-owned factories, they did incur the costs of providing health care, retirement benefits and housing. They usually did not do any product research or design. absorbed to intellectual property protection, they would copy any popular product design and sell it for much less. The resulting price drop had become a serious problem for the whole industry. As the profit margin kept shrinking, some workshops would hire cheap unskilled workers, and use cheap equipment and raw materials to cut ea t on cost. The results could be disastrous. THE DOMESTIC MARKETFirecrackers and fireworks had long been an integral part of any ceremonies held in China. Until recently, demand had been stable, but had move up in the past three decades because of increased economic development and living standards. Economically, market reform and unparalleled growth had given rise to the daily appearance of multitudes of new companies and new stores. As peoples income level and living standards kept rising, fancier and pricier fireworks and firecrackers were desired over the cheap simple firecrackers, thereby creating more profit opportunities for fireworks manufacturers.Almost every household would spend at least a couple of hundred RMB on firecrackers and fireworks during the Spring Festival. However, during the 1990s, increased concerns over environmental pollution and safety of human life and property led more and more cities to regulate the consumption of fireworks and firecrackers. Every yea r, high profile fireworks-related accidents were reported and emphasized on mass media before and after the traditional Spring Festival. Some articles even condemned firecrackers and fireworks as an old, uncivilized group that created only noise, pollution and accidents.In a wave of regulations, city after city passed administrative laws regarding the use of fireworks. By 1998, one-third of the cities in China had completely banned the use of firecrackers and fireworks. Another one-third only allowed fireworks in designated places. This led to a decline in domestic market demand. 1 In 2009, the exchange rate was around 6. 60 yuan per US$1. 00. Page 7 9B11M006 However, all this began to change in the mid 2000s. Demand began to soar when Beijing lifted a 12-year ban on fireworks in 2005. Other cities followed suit.In 2005, 106 cities eased restrictions on fireworks in 2006 another 54 cities eased restrictions. This was followed by 40 cities in 2007 and another 79 cities in 2009. All this lead to an explosion in the Chinese domestic fireworks market. In the meantime, domestic competition grew intensely. The reform towards a market prudence made it possible for numerous family-run workshops to appear. They competed mainly on price. Almost every province had some fireworks-making workshops or factories, many set up and run with the help of skilled workers who had migrated from Liuyang.These small establishments usually were located in rural, underdeveloped areas where labor cost was low. The manufacturing was done manually, sometimes without safety measures, using cheap raw materials and simplified techniques. The products were sold locally at low prices, making it difficult for Liuyang fireworks to sell in those areas. To make things worse, these products would often copy any new or popular product designs coming out of Liuyang or other traditional fireworks communities, even using their very brand names. In the past, fireworks were sold through the government-r un general merchandise companies.Eventually, private dealers took over a large part of the business. Overall, the distribution system was rather fragmented. The old government-run channel were not very effective, especially for general merchandise. In the new distribution channels, in large quantities dealers would get burdens directly from the manufacturers, and then resell to street peddlers and convenience stores. In the countryside, wholesale markets would appear in focal townships, with wholesale dealers and agents of the manufacturers setting up booths promoting their products.Small peddlers in the surrounding areas would get supplies from the market and then sell them in small towns or villages. The wholesale markets in China were important outlets for distributing general merchandise like fireworks. In the display fireworks market, the buyers were often central and local governments, who would purchase the product for public shows on national holidays or special celebrati ons. Obviously, a local company would have advantages in provision to local government in its area. Large fireworks shows usually would use invited bidding to decide on suppliers.The amount of fireworks used could range from RMB100,000 to several one thousand thousand yuan, depending on the scale of a fireworks show. Account receivables and bad debt control was a problem not just for fireworks manufacturers, but for all businesses in China. Bad debts and lack of prize for business contracts had created a credit crisis in China. The bad debt problem greatly increased transaction costs, slowed down the cash turnover, and had become a headache for fireworks manufacturers. Some had chosen to withdraw from selling in the domestic market, although the profit margin was higher than in the export market.Legal restrictions, local protectionism, cutthroat price competition, hard-to-penetrate distribution channels and bad debt were impacting negatively on the domestic sales of Liuyang firewo rks. In 1997, seeing the decline of its fireworks sales, Liuyang Firecrackers and Fireworks Industry Department, the government agency in charge of the overall development of the pillar industry, decided to start an offensive strategy. First, it undetermined local offices in most of the 29 provinces, major cities and regions to promote Liuyang fireworks.Second, it regulated the prices that Liuyang fireworks companies could quote and sell in export sales. Third, it resorted to a government-to-government relationship in order to secure contracts for large public fireworks displays in each province. One year after introducing the offensive strategy, Liuyang fireworks sales had increased. By 2009, they controlled an estimated 60 per cent of the global market. Page 8 9B11M006 Over the next ten years, many legal restrictions were lifted. One of the most notable legal restrictions to be eased was orthogonal direct investment.With huge growth in both the Chinese domestic market and with C hina nearing a virtual lock on export market, the Chinese Fireworks industry had become a magnet for foreign investors. Liuyang remained the center of the Chinese fireworks industry and an attractive region for foreigners and foreign firms smell at controlling the entire fireworks value chain. THE EXPORT MARKET Since the opening of the Chinese economy in 1979, exporting had become a major market for the Chinese fireworks industry. As one of the most famous products out of China, export sales of fireworks had risen dramatically between 1978 and 2009.According to independent research, the recorded exports of firecrackers and fireworks reached US$675 million in 2009. This was up from an estimated US$143 million in 1994. The products from China were rich in variety and low in price, but also had a lower reputation in quality control, packaging and quantify control, compared to the products made in Japan and Korea. China-made fireworks also would wholesale for much lower prices, usual ly 80 per cent lower than similar products made in Japan or Korea. There had been little overall co-ordination of export sales.As more and more companies were allowed to export directly, competition kept intensifying and the profit margins on export sales kept slipping. As a result, underpricing each other became a common practice. Therefore, despite its dominant share of the world market, the Chinese fireworks export industry enjoyed limited profitability. The export price of Chinese fireworks was between fifth and one-third the wholesale price in the United States. The importers enjoyed a high markup even after paying(a) the 2. 4 per cent U. S. import duty.Of course, the importers had to absorb the cost of getting permits, shipping, storing and carrying the inventory for three to four months before making the sales. This gap pushed both domestic and foreign companies to find ways to control more of the value chain from production to retail. Besides suffering from low profit margi n, the Chinese fireworks makers were also risking losing their brand identities. tending(p) the low cost and reasonably good quality of the Chinese fireworks, many large fireworks manufacturers and dealers in the West started to outsource the making of their brand-name fireworks.Failing to see the importance of brand equity, the Chinese fireworks manufacturers were sometimes reduced to mere manufacturing outfits for foreign companies, gradually losing their own brands. There were also fireworks merchants in Korea, Japan or Spain, who would buy the products from China, and then repackage them, or replace the fuses with better quality ones, then resell them for much higher prices. The export market was usually divided into five blocks due southeast Asia, North America, Europe, South America and the rest of the world.The most popular market had been Europe, where the regulations on fireworks were less stringent, and orders were of larger quantities and better prices. The United State s was considered a tough market because of complex regulations and high competition, nevertheless a necessary one if a company wanted to remain a practicable world-player. While in the past, the Canadian market was virtually closed to the Chinese fireworks due to its regulations, by 2009 Chinese imports dominated the entire Canadian market. Page 9 9B11M006 The foreign importers were powerful buyers for several reasons.First, they were very well informed, both through past dealings with China and the Internet. Second, they were able to hire agents who were very familiar with the industry in China. Third, they could deal directly with the factories that were willing to offer lower prices. Fourth, there were basically no sack costs, so they could play the suppliers against each other. The diversity of the cultures in the destination countries greatly reduced the seasonality of the fireworks production and sales. As a result, orders evened out throughout the year. However, the peak se ason was still towards the end of the year.For the U. S. , it was before July 4. Usually, the importers would receive the shipment two or three months beforehand. While the U. S. was still Chinas major export market for fireworks, other countries were also importing large quantities of Chinese made fireworks (see Exhibit 4). The Internet had become a marketing outlet for Chinese fireworks. 20 per cent to 25 per cent of the worldwide sales were through the Internet. However, export sales were still made mainly through foreign trade companies or agents. In recent years, foreign investments were also funneled into the fireworks industry.In Liuyang, four of the large fireworks factories had foreign investments, made mainly by the fireworks occupation companies in Hong Kong. In 2009, the Liuyang Fireworks Company was listed on the Toronto Stock Exchange (TSE), a first for a Chinese fireworks manufacturer. The Future of the Fireworks Industry in China The managers of the Chinese firework s companies that Jerry talked to expressed mixed feelings towards the future outlook of their industry. One pessimistic view was that fierce competition and more stringent safety regulations were killing the industry.As the Chinese economy advanced, the government was forcing more manufacturing regulations onto firms that were driving up costs. Moreover, as people became more environmentally-conscious and more distracted by the endless diversities of modern entertainment, traditional celebrations using firecrackers and fireworks would die a gradual death. As to the function of attracting public attention for promotional purposes, fireworks also faced challenges from new technologies, such as laser beams have with arduous effects. In fact, make-believe firecrackers already appeared as substitutes in China.These were made of red plastic tubes strung together like firecrackers with electric bulbs installed inside the tubes. When the power was turned on, the lights would emit sparks, accompanied by crackling reports that sounded like firecrackers. These were being used at weddings and grand openings in cities where firecrackers and fireworks were banned. More interesting substitutes were spotted at some weddings in Beijing, where people paved the road with little red balloons, and made the limousine carrying the bride and groom run over the balloons to make explosive cracking sounds as well as leave behind red bits and pieces of debris.Also, more and more young couples were getting married in western styles, in a perform or a scenic green meadow outdoors, where serene and quiet happiness prevailed over the traditional noisy way of celebrating. Therefore, some managers believed that firecrackers and fireworks were doomed to fade off into history. The more optimistic view, however, was that the industry would not die at all. If the right moves were made by the industry, it could even grow. Some said that tradition would not die so easily. It was in their national character for the Chinese to celebrate with an atmosphere of noisy happiness.Moreover, even in the West, the popularity of fireworks was not suffering from all the regulations. No real substitutes could Page 10 9B11M006 replace fireworks, which combined the sensual pleasures of visual, audio and emotional stimuli. For instance, the U. S. Congressional resolution in 1963 to use bells to replace fireworks in celebrating Independence Day never really caught on. Fireworks were also being combined with modern technologies like laser beams, computerized firing and musical accompaniment to make the appeal of fireworks more irresistible.The safety problem was not really as serious as people were made to believe, and would only improve with new technological innovations like smokeless fireworks. With the success of the fireworks displays at the Beijing Olympics, Chinas brand as a world class fireworks producer was on the rise. With better management practices, perhaps margins could be incre ased. However, both sides agreed that the Chinese fireworks industry would have to change its strategy, especially in international competition, to stay a viable and profitable player. THE DECISIONWhile the Liuyang fireworks industry dominated the worldwide industry, Jerry had to decide whether he should invest in the industry. If he did invest, what was the best way to benefit on the potential that remained unexploited in this industry? He wondered whether he could apply the industry abridgment framework he had studied in his MBA program. Page 11 9B11M006 Exhibit 1 CHINA & LIUYANG FIRECRACKERS AND FIREWORKS native REVENUE (US$000) 2007 2009 measure Revenue Domestic (estimated) All China 742,395 1,009,757 Liuyang 450,000 757,500 Total Revenue ExportsAll China 494,930 673,171 Liuyang 300,000 505,000 Total Revenue (estimated) All China 1,237,325 1,682,928 Liuyang 750,000 1,262,500 Sources International Fireworks Association ICON Group Ltd The World Market for Fireworks A 2009 Glob al Trade Perspective Notes 1. Domestic Revenue estimate based on a 64 domestic to export ratio as reported by http//www. articlesbase. com. 2. Alternative sources put the Chinese domestic market much higher. 3. 2009 data and 2007 data are from different sources. Caution should be used when making comparisons.Growth rates of 15 to 18 per cent per year have been reported by other news sources (especially http//www. newsreelnetwork. com) Page 12 9B11M006 Exhibit 2 TOTAL FIREWORKS CONSUMPTION AND ESTIMATED FIREWORKS-RELATED INJURIES IN U. S. 2000 TO 2008 Year Fireworks Consumption, Millions of Pounds Estimated Fireworks-Related Injuries Injuries per 100,000 Pounds 2000 152. 6 11,000 7. 2 2001 161. 6 9,500 5. 8 2002 190. 1 8,800 4. 6 2003 220. 8 9,700 4. 4 2004 236. 2 9,600 4. 1 2005 281. 5 10,800 3. 8 2006 278. 2 9,200 3. 3 2007 265. 5 9,800 3. 7 2008 213. 7,000 3. 3 Source American pyrotechny Association. Exhibit 3 ESTIMATED EMERGENCY ROOM TREATMENT PER 100,000 YOUTHS (AGES 5 TO 14) F ROM OUTDOOR ACTIVITIES (JUNE 22 TO JULY 22, 2008) Source American Pyrotechnics Association As cited from the CPSC National Injury Information Clearinghouse 5,244 13,501 14,258 6,349 21,040 15,268 18,365 21,032 68,553 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Fireworks Skateboards Fishing Swing Sets Swimming 4 wheel ATVs Sof tball Baseball Bicycles Page 13 9B11M006 Exhibit 4 FIREWORKS EXPORTS FROM CHINA, 2009Country of Destination Rank Value (000 US$) % Share Cumulative % United States 1 301,500 44. 8 44. 8 Germany 2 83,553 12. 4 57. 2 United Kingdom 3 33,645 5. 0 62. 2 The Netherlands 4 32,586 4. 8 67. 0 Japan 5 26,764 4. 0 71. 0 Russia 6 16,157 2. 4 73. 4 Italy 7 15,967 2. 4 75. 8 France 8 13,574 2. 0 77. 8 Spain 9 13,009 1. 9 79. 7 Denmark 10 9,935 1. 5 81. 2 Canada 11 9,817 1. 5 82. 7 Poland 12 9,580 1. 4 84. 1 Taiwan 13 8,130 1. 2 85. 3 Finland 14 6,002 0. 9 86. 2 South Africa 15 5,623 0. 8 87. 0 Austria 16 5,488 0. 8 87. 8 Ukraine 17 5,445 0. 88. 7 Sweden 18 4,8 68 0. 7 89. 4 Albania 19 4,835 0. 7 90. 1 Argentina 20 4,793 0. 7 90. 8 Turkey 21 4,592 0. 7 91. 5 Belgium 22 4,583 0. 7 92. 2 Norway 23 4,336 0. 6 92. 8 Czech land 24 4,312 0. 6 93. 5 Venezuela 25 4,257 0. 6 94. 1 New Zealand 26 4,024 0. 6 94. 7 Switzerland 27 3,316 0. 5 95. 2 South Korea 28 3,104 0. 5 95. 6 Thailand 29 2,720 0. 4 96. 0 Indonesia 30 1,925 0. 3 96. 3 Other 31 24,731 3. 7 100. 0 Total 673,171 100. 00 100. 00 Source Professor Philip M. Parker, INSEAD, copyright 2009, www. icongrouponline. com