The Philippine Tourism Industry Analysis - 5195 Words

THE PHILIPPINE TOURISM INDUSTRY ANALYSIS I. SCANNING OF THE EXTERNAL ENVIRONMENT A. OPERATING ENVIRONMENT 1. ECONOMIC INDICATORS Income, employment, balance of payments and investments are all the positive impacts of the tourism industry. The industry generates income through salary, wages, loan and interest. The amount spent by tourists though their currency in the accommodation, food and beverage and other tourism services and products,once they visited in our country, becomes our tourist receipts. Tourism brings new money into the economy. Tourist money is returned to the local economy as it is spent over and over again. As shown in the multiplier effect, the salary that an employee receives from the business can be used for†¦show more content†¦This would then lead to the improvement of health conditions and allows the area to control disease. However, congestion results from saturation making an area crowded and supply of resources limited for locals. A change in social structure and behavior also result due to the emergence of new jobs. Women or wives can work with high paying jobs compared with their husbands. Opportunity to travel for work results from separation of family. Tourism can positively affect culture in terms of preserving and restoring our cultural heritage as being showcased in trade, museums, galleries and festivals. It helps the country revive traditional facts and artifacts. Because of tourism sectors and their activities such as promotions and marketing, planning and development etc., we are able to cultivate our cultural pride and identity.The desire to experience other culture and interact with other nationalities through learning foreign languages, we come to have cross cultural exchange. 3. 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The Principal Crusades Free Essays

The Crusades were a series of Holy Wars launched by the Christian states of Europe against the Saracens and the rescuing of holy places of Palestine from the hands of the Mohammedans. (Alchin 1) There were eight Crusades in number; the first four were sometimes called the Principal Crusades, and the remaining four were the called the Minor Crusades. (Alchin 1) The Principal Crusades, however, were considered to be the most important. We will write a custom essay sample on The Principal Crusades or any similar topic only for you Order Now (Alchin 1) The Principal Crusades started because of key people or key events, which led to affect history. Every crusade contained key people, which helped spark the crusades, or contained key leaders that were important in conquering them. The first impulse to the Crusade came from an appeal of the eastern emperor, Michael VII to Pope Gregory VII for aid against the Seljuks. (Walker 2) Alexius I, a stronger ruler tan him immediate predecessors in Constantinople, saw the divisive squabbles among the Seljuk chieftain as an opportunity to take the offensive. (Walker 2) He, therefore, appealed to Pope Urban II for assistance in raising a body of western knights to help him recover his lost Asiatic provinces. Walker 2) Urban called on all Christendom to take part in the work, promising a complete remission of sins to those who would take the arduous journey. (Walker 2) The leaders of the first Crusade included some of the most distinguished representatives of European knighthood. (Alchin 2) Count Raymond of Toulouse headed a band of volunteers from a Province in southern France. (Alchin 2) Go dfrey of Bouillon and his brother Baldwin commanded a force of French and Germans from the Rhinelands. (Alchin 2) Normandy sent Robert, William the Conqueror’s eldest son. Waring 167) The Normans from Italy and Sicily were led by Bohemond, a son of Robert Guiscard, and his nephew Tancred. (Alchin 2) All of these men were key leaders in the first Crusade. In 1145, Pope Eugenius III proclaimed a new crusade and in 1147 the second crusade set forth, but it showed little of the fiery enthusiasm which the first crusade possessed. (Walker 4) The contagion of the holy enthusiasm seized not only barons, knights, and the common people, but kings and emperors were now infected with the sacred frenzy. (Alchin 11) The key leaders of the second crusade were two monarchs, Louis VII of France and Conrad III of Germany. Alchin 11) Conrad III, emperor of Germany, was persuaded to leave the affairs of his distracted empire in the hands of God, and consecrate himself to the defense of the sepul cher of Christ. (Buddy 11) Louis VII. , king of France, was led to undertake the crusade through remorse for an act of great cruelty that he had perpetrated upon some of his revolted subjects. (Alchin 11) The key men of the third crusade were both distinct leaders. King Richard I of England, who was later given the title the â€Å"Lion-hearted†, was the central figure among the Christians knights of this crusade. Alchin 16) The other was Saladin, chief of the Mohammedans, who was not lacking in any of those knightly virtues with which the writers of the time invested the character of the English hero. (Alchin 20) At one time, when Richard was sick with a fever, Saladin, knowing that he was poorly supplied with delicacies, sent him a gift of the choicest fruits of the land. (Alchin 20) On another occasion, Richard’s horse having been killed in battle, the sultan caused a fine Arabian steed to be led to the Christian camp as a present for his rival. Alchin 20) For two ye ars Richard the Lion-hearted vainly contended in almost daily combat with his generous antagonist for the possession of the tomb of Christ. (Alchin 20) Both of these men contributed to the third crusade. The fourth Crusade was authored by only one person, and that person only had one goal. The young, enthusiastic and ambitious Pope Innocent III sought once more to unite the force of Christendom against Islam. (Cairns 216) No emperor or king answered his summons, but a number of knights took the crusader’s vow. Alchin 24) None of the Crusades, after the Third, effected much in the Holy Land; either their force was spent before reaching it, or they were diverted from their purpose by different objects and ambitions. (Alchin 24) All of these key figures helped spark the Principal Crusades. The results from the key events were the end of the Principal Crusades. These events that follow helped the Christians prevail over the Muslims. Godfrey of Bouillon, Duke of Lorraine, and Tanc red lead an expedition to recapture Jerusalem. (Alchin 5) The expedition numbered about seven hundred thousand men, of which one hundred thousand were called knights. Alchin 5) The crusaders traversed Europe by different routes and reassembled at Constantinople. (Alchin 5) Crossing the Bosphorus, they first captured Nicaea, the Turkish capital, in Bithynia, and then set out across Asia Minor for Syria. (Alchin 5) Arriving at Antioch, the survivors captured that place, and then, after some delays, pushed on towards Jerusalem. (Alchin 5) The Siege of Antioch had lasted from  October 1097 to June 1098. (Alchin 5) Reduced now to perhaps one-fourth of their original numbers, the crusaders advanced slowly to the city which formed the goal of all their efforts, Jerusalem. Alchin 6) When the Crusaders were in full view of the Holy City, a perfect delirium of joy seized the crusaders. (Alchin 6) They embraced one another with tears of joy, and even embraced and kissed the ground on which t hey stood. (Alchin 6) As they passed on, they took off their shoes, and marched with uncovered heads and bare feet before attacking it. (Alchin 6) Then the grand assault came. The first assault made by the Christians upon the walls of the city was repulsed; but the second was successful, and the city was in the hands of the crusaders by July 1099. Alchin 7) Once inside the city, the crusaders massacred their enemies without mercy. (Alchin 7) The fall and massacre of the city of Edessa sparked the second crusade. In the year 1146, the city of Edessa, the bulwark of the Latin Kingdom of Jerusalem on the side towards Mesopotamia, was taken by the Turks, and the entire population was slaughtered, or sold into slavery. (Alchin 9) This disaster threw the entire West into a state of the greatest alarm, lest the little Christian state and all the holy places should again fall into the hands of the infidels. Alchin 9) The second crusade, though begun under the most favorable auspices, had an unhappy ending. (Alchin 12) Of the great host that set out from Europe, only a few thousands escaped annihilation in Asia Minor at the hands of the Turks. (Alchin 12) Louis and Conrad, with the remnants of their armies, made a joint attack on Damascus, but had to raise the siege after a few days. (Alchin 12) This closed the second crusade. The capture of Jerusalem by Saladin stimulated the third crusade. Having made himself sultan of Egypt, Saladin united the Moslems of Syria under his sway and then advanced against the Latin  Kingdom of Jerusalem. Alchin 14) The Christians met him in a great battle near the lake of Galilee. (Alchin 14) It ended in the rout of their army and the capture of their king. (Alchin 14) Saladin quickly reaped the fruits of victory. (Alchin 14) The Christian cities of Syria opened their gates to him, and at last Jerusalem itself surrendered after a short siege. (Alchin 14) The news of the taking of Jerusalem spread consternation throughout western Christ endom. (Alchin 15) The cry for another crusade arose on all sides. (Alchin 15) Once more thousands of men sewed the cross in gold, or silk, or cloth upon their garments and set out for the Holy Land. Alchin 15) When the three greatest rulers of Europe, King Philip Augustus of France, King Richard I of England, and the German emperor, Frederick Barbarossa heard about the catastrophe; they set out, each at the head of a large army, for the recovery of the Holy City of Jerusalem. (Walker 5) Thus the third crusade began. The crusaders of the fourth expedition captured Constantinople instead of Jerusalem. The crusaders took Constantinople by storm. (Alchin 26) No infidels could have been treated in a worse fashion than this home of ancient civilization. Alchin 26) They burned down a great part of it; they slaughtered the inhabitants; they wantonly destroyed monuments, statues, paintings, and manuscripts—the accumulation of a thousand years—and carried away much of the movab le wealth. (Alchin 26) Never had there been such plunder since the world began. (Alchin 26) The results of these events played important roles in the Principal Crusades. The effect of the Principal Crusades had historical implications on society. At the recapturing of Jerusalem of the first crusade, a terrible slaughter of the infidels took place. Alchin 7) For seven days the carnage went on, at the end of it, scarcely any of the Moslem faith was left alive. (Alchin 7) The Christians took possession of the houses and property of the infidels, each soldier having a right to that which he had first seized and placed his mark upon. (Alchin 7) All of this was the affect of the first crusade. At the retreating from the siege of Damascus of the second crusade, the strength of both the French and the German division of the expedition was wasted in Asia Minor, and the crusade accomplished nothing. (Alchin 12) Thus was the end of the second Crusade. In the third crusade, although Richard was unsuccessful in recapturing Jerusalem, he did get Saladin to agree to give pilgrims free access to the city without paying tribute. (Cairns 214) After the truce, Richard set sail for England, and with his departure from the Holy Land the third crusade came to an end. (Cairns 214) Thus was the end of the third crusade. Although the crusaders of the fourth crusade had plundered from the sack of Constantinople, it had a negative effect. Constantinople declined in strength and could no longer cope with the barbarians menacing it. (Alchin 28) Two centuries later the city fell easily to the Turks. Alchin 28) Their greed and lust for power turned the fourth crusade into a political adventure. (Alchin 28) Thus was the ending of the fourth crusade. These were the historical affects of the Principal Crusades. The trigger of the Principal Crusades was from the emulation of key leaders and the stimulation of key events, which both had negative and posit ive effects on history. The crusades were great military expeditions undertaken by the Christian nations of Europe. There purpose, to take back former Christian nations from pagans and to restore Christianity throughout them. Works Cited Alchin, Linda. â€Å"The Crusades. † Middle Ages. N. S. , 16 July 2006. Web. 3 Mar. 2011. http://www. middle-ages. org. uk/the-crusades. htm Buddy. â€Å"A Brief History of the Crusades. † My Discipleship Journal (2010). Print. Cairns, Earl. Christianity through the Centuries: a History of the Christian Church. Grand Rapids: Zondervan, 1996. Print. Walker. â€Å"The Crusades. † Theology Website. N. S. , 1997. Web. 3 Mar. 2011. http://theologywebsite. com/ history/crusades. shtml. Waring, Diana. Romans, Reformers, and Revolutionaries. Petersburg: Thomas Nelson Publishers, Inc. , 2008. Print. How to cite The Principal Crusades, Papers

Organizational Challenges of Profit and Goals-Samples for Students

Question: In the Global Context, Discuss the Organizational Challenges of Profit, Goals and Corporate Social Responsibility. Answer: Introduction The aim of this essay is to evaluate the challenges that organizations face in relation to their profit, goals and corporate social responsibility (CSR). However, in this essay will further discuss the understanding of the ethical obligations and issues that are encountered by the organization. At the time of establishment, setting the goals becomes an important issue because based on it the organization builds its solid base from which to grow. Thus, organizations face challenging situations when there is lack in intellectually challenging goals. Another major goal that organizations face globally is related to profit where the main challenge arise due to poor management, dissatisfaction of the employees and obsolete performance management systems in the sphere of profit making (Craft, 2013). Lastly, another major challenge is faced by the organization in the CSR. Global businesses today have to consider more than productivity if they have to keep their customers, workers, shareholder as well as their community satisfied (Crane, Matten Spence, 2013). Therefore, situations become challenging when the organization has to balance both positive social change as well as the goals of the organization. Discussion Businesses have certain ethical obligations that split similarity with legal rules and regulations in deciding how a business performs itself while determining to make profit as well as attain strategic organizational goals. However, ethical obligations are actually more about unrestricted decisions and value-guided behavior (Thiel et al., 2012). Woolworths Limited believes in getting their customers trust by behaving responsibly as well as doing the correct thing for their customers as well as their community. However, the organization Woolworths is devoted in upholding human rights not simply with respect to its individual employees nut also for the workers who are part of their supply chain. However, their ethical obligations is mainly surrounded by the inclusive criteria on anti-corruption, labor rights, safe working conditions as well as environmental compliance. Therefore, is has been seen that ethical issues are becoming an essential feature when analyzing the success of the b usiness. Todays customers mainly prefer those brands, which avoids unethical reputations. Moreover, if organizations neglect their social responsibilities then they might land into legal troubles (Homburg, Stierl Bornemann, 2013). Therefore, organizations like Woolworths faced issues in areas like profit, goals and their CSR. Woolworth further faces issues with the value and ethics related to their stakeholders. Therefore, to preserve a strong relationship with their stakeholders, Woolworth has worked on a vigorous process of stakeholder engagement. Through this process, Woolworth can on a regular basis review of needs as well as opportunity of their stakeholders to keep satisfied. However, the main reason of Woolworth to focus particularly on their stakeholders is that it also needs to understand the various issues faced by their stakeholders in the economic, environmental as well as social areas. Moreover, in relation to these Woolworth also focuses on approval of problem solving approach to manipulate their stakeholders and get the maximum profit. However, this organization is always ready to face challenges as well as changes, which are connected to the stakeholders (Woolworthsgroup.com.au, 2018). Stakeholders have an adverse relation with the output or the revenue generated from business, which means they do have a concern or interest in full course of working. List of stakeholders includes groups, systems, accountants, member or organization. Since they pour investment in the working capital, therefore by default they become the member for the decision-making committee in an organization. When responsible for a small business, an owner apprises those who show interest in the organizations activities. Customers, business partners, employees, suppliers, investors and fellow business leaders are potential stakeholders (Brown Forster, 2013). In order to run a successful business agenda, it is significant to convince the stakeholders and to make sure that certain ethical responsibilities is maintained in terms of some decisions taken, including decisions of hiring and contract, to demonstrate and highlight companys social responsibility. An organization tends to operate schemes coming in worth full for responsible stakeholders and to make sure a complete sync is established between all the associates, directors, and CEOs of the company. Ethical theories: Self Interest, Enlightened or Otherwise: In this ethical theory most focus has been made on self interest or companys benefits to be the prime prospect without looking into the ways of how it affects society as a whole. Methods, which is concerned about only self-made methods through which business is prospered. This theory of business ethics can be used to justify almost any business decision (Broad, 2014). Duty to Principles or People: Self-interest methods can be possible in a free market, which does practically not exist in nature, or we can say it is hypothetical concept, as real markets are always bound by laws and other restrictions (Yazdani Murad, 2015). It is a debate or an unsettled fact that about who or what should be the obligations of a business leader. If a company has stakeholders or investors, then the business owner is bound by law to act according to their financial interest. Compassion and Consequences: Many have criticized basing the business operations on moral ethics. Business based solely on compassion cannot succeed economically, but that does not mean that ethical decision-making should be based solely in compassion. Another way of looking at ethical problems is to think about the possible course of actions. Work practices, which cause environmental problems, may bring immediate benefits for the stakeholders but it may cause largely affecting consequences (Ford Richardson, 2013). Virtue and Vice: It is an ancient theory of business ethics which says that a leader will have certain virtues like honesty and courage. Such practices are criticized heavily and no certain rules have been made (Prior, 2016). Some ethical theories are made keeping in mind the concept of pure free market according to economics and in real market scenario rules, competitors and regulations are always embossing. No theories suffice all the need of an organization. The best approach is use all the major ethical theories to assess a situation. For instance, before making a decision an owner should question himself about his planned course of actions. Is it in the best interest for the company? Is it going to satisfy the needs of stakeholders and investors? What is the likely socio-economic impact? After considering such questions thoughtfully, any decision made will be an ethical one. Woolworth Limited has maintained certain processes to conserve the satisfaction of their stakeholders and they are as follows: Providing proper working conditions to its employees, safeguarding their human rights, and ensuring safety standards in surrounding environment Policies regarding workplace safety, fair pay, employment conditions, motivating environment and job security. Company is also implementing improvement to make sure that their suppliers would be able to qualify according to the standards. Woolworth ensures regulation of labour rights in which the labour are free to choose their way of employment or job. If something went against their satisfaction level then they are not forced to work into that organization, in fact they are made free to make the decision of leaving the organization. No discrimination of caste, creed, color or gender should take place in the organization. Moves focus towards environment sustainability (Lewis Huber, 2015). By following such methods, Woolworth maintained its sustainability in the competitive retail market. They mainly focus on Stakeholder satisfaction, which in return yield them good results. However, in recent years the global organizations incorporate their policies into their performance management program so that they can hold their workers responsible for their actions as well as alert them to their liabilities to support professional standards during their job performance and their interaction with the colleagues and supervisors. Today organization also provides training regarding ethics to their employees so that it can help the employees address and determine the ethical dilemmas that go in between them and the goals of the organization. To make possible an effective organizational ethical training program companies train their employees through experiential learning or via role-play (Basarab Sr Root, 2012). Organizations today feel that they have certain responsibility towards the society where their focus mainly embraces time as well as money along with the duty to offer environmental products as well as services. They also crave to advance the lives of individuals around the globe. Conclusion To conclude this report, it can be said that throughout the globe the challenges that the organization faces regarding their ethical obligations are mainly in the areas of profit making, goal settings or their CSR responsibilities. Taking the organization Woolworth Limited as one of the global organization it can be said that they not only face challenges in value and ethics related to their stakeholders but also ethical dilemmas arises in keeping their customers happy through ethical profit making functioning. Thus, to avoid any unethical practices and develop a loyal relationship with their stakeholders, Woolworth prefers an engagement process for them so that it can keep all the stakeholders satisfied. Several theoretical approaches are applied to help the organizations globally to deal with ethical dilemma. However, today majority of the global organizations prefer to train their employees beforehand on business ethics so that it can help them understand and solve any kind of eth ical obligations. Moreover, they also prepared their policies depending on the ethical standards so that following it the employees can take the responsibilities of their own behavior and relationships with their colleagues and senior References Basarab Sr, D. J., Root, D. K. (2012).The training evaluation process: A practical approach to evaluating corporate training programs(Vol. 33). Springer Science Business Media. Broad, C. D. (2014).Five types of ethical theory(Vol. 2). Routledge. Brown, J. A., Forster, W. R. (2013). CSR and stakeholder theory: A tale of Adam Smith.Journal of business ethics,112(2), 301-312. Craft, J. L. (2013). A review of the empirical ethical decision-making literature: 20042011.Journal of business ethics,117(2), 221-259. Crane, A., Matten, D., Spence, L. (2013). Corporate social responsibility in a global context. Ford, R. C., Richardson, W. D. (2013). Ethical decision making: A review of the empirical literature. InCitation classics from the Journal of Business Ethics(pp. 19-44). Springer, Dordrecht. Homburg, C., Stierl, M., Bornemann, T. (2013). Corporate social responsibility in business-to-business markets: How organizational customers account for supplier corporate social responsibility engagement.Journal of Marketing,77(6), 54-72. Lewis, T., Huber, A. (2015). A revolution in an eggcup? Supermarket wars, celebrity chefs and ethical consumption.Food, Culture Society,18(2), 289-307. Prior, W. J. (2016).Virtue and knowledge: An Introduction to ancient Greek ethics. Routledge. Thiel, C. E., Bagdasarov, Z., Harkrider, L., Johnson, J. F., Mumford, M. D. (2012). Leader ethical decision-making in organizations: Strategies for sensemaking.Journal of Business Ethics,107(1), 49-64. Woolworthsgroup.com.au. (2018).Corporate Responsibility - Woolworths Group. [online] Available at: https://www.woolworthsgroup.com.au/page/community-and-responsibility/group-responsibility/ [Accessed 12 Feb. 2018]. Yazdani, N., Murad, H. S. (2015). Toward an ethical theory of organizing.Journal of Business Ethics,127(2), 399-417.

Kenyas Rose Imports to Holland Essay Example

Kenyas Rose Imports to Holland Essay International Management 2011 Group 7 5 March 2011 Hereby, we declare that this work submitted is our own work, and that it has not been previously submitted on any other course at another institution. Name| Student Number| Date| Signature| Govert van Drimmelen| 9408596| | | Frans Jacobs| 210234993| | | Francois Viljoen| 201245922| | | Frances Roets| 97082154| | | Kaashni Pillay| 210234870| | | Marisa Da Silva Valga| 98011161| | | Mbhavi Raedani| 99026820| | | Sarel Venter| 201194601| | | Stephanie du Preez| 209315211| | | Table of Contents Background on Kenya5 Brief Overview of the business Environment5 The Kenyan Economy:6 Kenya Trade, Exports and Imports9 Kenya Trade: Exports9 Kenya Trade: Imports9 Flower growing in Kenya10 Why is Kenya so successful with flower growing? 10 Threats:10 The Future Prospects and Trends of the Flower Industry in Kenya11 Background on The Netherlands (Holland)12 Background and Market Information12 Flower Industry Background13 The Dutch Flower Auction Concept14 Some Lessons the Auctioneers Learned16 FloraHolland17 Our Current Situation20 De Roos Florist – Amsterdam Sloten20 Supply Chain Diversification22 Definition: Supply chain diversification22 Advantages of diversification22 More emphasis on value chain innovation22 A stronger focus on cost reduction22 Increasing sales to present customers23 Building new or more flexible competition23 Disadvantages23 Supply Chain Decisions24 1. Location Decisions:24 2. Production Decisions24 3. Inventory Decisions27 4. Transportation Decisions27 Growers28 Roses29 Inventory Rules31 Types of inventory33 Supply Chain for Import34 Export and Import Regulations and Taxes36 Duties and VAT36 Customs Entries36 Payment36 Currency36 Open Account (OA)37 Documentary Letter of Credit (LC)37 Terms of Delivery37 Import Duties37 Import Taxes38 Import Regulations of the Netherlands on Plant Health38 Points of entry38 We will write a custom essay sample on Kenyas Rose Imports to Holland specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Kenyas Rose Imports to Holland specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Kenyas Rose Imports to Holland specifically for you FOR ONLY $16.38 $13.9/page Hire Writer List of importers and Approved places of inspection38 Import Declaration Form (IDF)39 Quality Inspection39 Customs Import Entry39 Special Permits/Certificates40 The role of the exporters40 Distribution and Transportation Process42 The Cool Chain43 CONCLUSION51 References:53 Background on Kenya Brief Overview of the business Environment Located in East Africa, Kenya lies on the Equator bordered by Somalia, Ethiopia, Sudan, Uganda, Tanzania and the Indian Ocean. It covers an area of some 592,909 sq. km and has a population of approximately 30 million people. Much of the country, especially in the north and east, is arid or semi-arid. Kenya is essentially an agricultural economy mainly dealing in horticulture and crops like coffee and tea. The country has been politically stable since it gained its independence in 1963, and the recent peaceful transition of power to the new administration has been widely praised as an impressive example of African democracy in action. The landslide victory of President Mwai Kibaki and the National Rainbow Coalition (NARC) in presidential and legislative elections in December 2002 marked the beginning of a new political era by ending almost four decades of one-party rule. The new administration has embarked on policies that focus on economic development, building up the country’s infrastructure and generating employment. The peaceful transition in 2002 demonstrated Kenya’s stability and political maturity. Further, a number of organizations and governments have based their regional headquarters in Nairobi. Moves to liberalize the economy taken over the last ten years have laid the groundwork for an investment-friendly environment in Kenya. The economic recovery strategy is targeted to achieve an 8% growth rate and industrial status for Kenya by 2025, creating 500,000 jobs a year in the process. The Central Bank of Kenya has pledged to pursue â€Å"a stable monetary policy, which accommodates the highest economic growth rate possible†, while keeping inflation low and stable. Kenya is an important player in East Africa. Strategically placed, with a major port, Mombasa, and well-developed financial markets, the country has the makings of a regional services hub in banking, information and transportation (Kenya Business Environment report, June 2005). The Kenyan Economy: National or Regional Currency: Kenyan Shilling, KES Population: 39. 8 million Area: total: 580,367 sq km Capital: name: Nairobi The regional hub for trade (imports and exports) and finance in East Africa, Kenya has been hampered by corruption (including cronyism and nepotism) and by reliance upon several primary favourables whose prices or pricing have remained depressed. In 1997, the International Monetary Fund (IMF) suspended Kenyas Enhanced Structural Adjustment Program due to the states failure to sustain reform and curb corruption (including cronyism and nepotism). A severe drought from 1999 to 2000 compounded Kenyas problems, causing water and energy rationing and reducing agricultural, agrarian, fisheries and farming output. As a result, Gross Domestic Product (GDP) contracted by 0. 2 per cent in 2000. The International Monetary Fund (IMF), which had resumed loans in 2000 to aid Kenya through the drought, again halted lending in 2001 when the state failed to institute several anticorruption (including cronyism and nepotism) measures. Despite the return of strong rains in 2001, weak commodity prices or pricing, endemic corruption (including cronyism and nepotism), and depressed investment put a ceiling on Kenyas growth of the economy to 1. 2 per cent. Growth lagged at 1. 1 per cent in 2002 because of erratic rains, depressed investor confidence, meager donor support, and political infighting up to the elections. In the key December 2002 elections, Daniel Arap MOIs 24-year-old reign ended, and a new opposition government took on the formidable economic problems facing the country. After some early progress in eliminating corruption (including cronyism and nepotism) and encouraging donor support, the KIBAKI government was rocked by high-level graft scandals in 2005 and 2006. In 2006 the World Bank (WB) and International Monetary Fund (IMF) delayed loans pending action by the state on corruption (including cronyism and nepotism). The international financial institutions and donors have since resumed lending, despite little action on the states part to deal with corruption (including cronyism and nepotism). Post-election violence in early 2008, coupled with the knock-on effects of the global economic downturn on remittance and exports, reduction of Gross Domestic Product (GDP) growth to 2. 2 per cent in 2008, down from 7 per cent the previous year. Country Forecast Overview (3 Years) Key Indicators| 2010| 2011| 2012| Real GDP Growth (%)| 2. 30| 2. 70| 3. 10| Consumer Price Inflation (av;%)| 3. 96| 5. 80| 5. 50| Budget Balance (% of GDP)| -7. 00| -6. 50| -6. 20| Current-Account Balance (% of GDP)| -9. 20| -8. 40| -6. 80| Exchange Rate US$:Euro (av)| 79. 17| 81. 79| 83. 50| Exchange Rate US$:Euro(year-end)| 80. 75| 82. 40| 84. 00| Source: Country Forecast Kenya May 2010 Year| GDP in Billions of USD PPP| % GDP Growth| 2006| 53. 75| 3. 56| 2007| 59. 26| 4. 31| 2008| 61. 58| -0. 96| 2009| 63. 79| 0. 00| 2010| 67. 36| 2. 30| Source: EIU Country Data Kenya: risk assessment Risk| February 2011| Sovereign risk| B| Currency risk| B| Banking sector risk| CCC| Political risk| CC| Economic structure risk| CC| Source: Kenya: Country risk summary (Kenya Country Snapshot, 2011) The performance of the Kenyan economy in 2009 was severely affected by three adverse shocks. First, the second-round effects of the global economic downturn depressed Kenya’s main export markets. Second, the erratic, delayed and shorter rainfall had a negative impact on the agricultural and power sectors. Third, the prolonged effects of the 2008 post-election violence depressed investor confidence and had adverse effects on the whole Kenyan conomy and population. As a result, the Kenyan economy is expected to have grown by 2. 5% in 2009. In spite of the slump of international capital markets, Kenya demonstrated the depth and liquidity of its domestic capital market by successfully floating two infrastructure bonds in 2009. The 2010 outlook for the Kenyan economy is more positive. First, Kenya’s exports are likely to benefit from the expected recovery in world economic growth and the increase in prices for some of Kenya’s main exports recorded in early 2010. Second, the impact of the 2009 fiscal stimulus, implemented by the government in late 2009, will be felt throughout 2010. Public and private investments are also expected to increase in 2010. As a result, the Kenyan economy is expected to grow by 3. 6% in 2010. Risks to a robust recovery in 2010 remain significant, however. Given the importance of agriculture to gross domestic product (GDP) and employment, any delay in the long or short rainy season will have severe economic and social consequences. Progress on improving institutional transparency is also critical for all Kenyan stakeholders to be confidently engaged. Particular attention needs to be paid to issues arising from the evictions and relocations of those who had settled in the Mau Forest, Kenya’s main water catchment area. Similarly, the International Criminal Court’s progress in investigating Kenya’s post-election violence, as well as efforts to have the constitution put to a referendum in 2010, will be closely watched. (African economic outlook, 2011) Kenya Trade, Exports and Imports Kenya is largely a trade deficit country. The negative balance of trade occurs because the countrys exports are vulnerable to both international prices and the weather conditions. Since independence, Kenya has enjoyed close international relations, particularly with the western countries. It is also a member of several regional trade blocs, such as the COMESA (Common Market for Eastern and Southern Africa) and the EAC (East African Community). These blocs are key components of Kenya’s trade volumes. Kenya Trade: Exports Agricultural productivity is central to Kenyas export industry. More than 75% of the population is engaged in agriculture and allied activities, which contribute almost 25% to the national production. Horticultural produce and ea are the major items of export for Kenya. In 2006, the combined share of these two products was 10 times higher than the share of the other export items. The country has subsistence petroleum production, which is consumed internally and exported to neighboring countries. Kenya has signed an MoU (Memorandum of Understanding) with China regarding oil exploration in the country. Till January 2010, no oil was found. Apart from horticulture and tea, other major items of export are flowers, coffee, fish and cement. In 2009, Kenya’s exports grossed over US$4. 9 billion. The UK is the largest export partner of Kenya, accounting for more than 10% of the total export volumes. It is followed by the Netherlands, Uganda, Tanzania, the US and Pakistan. Kenya Trade: Imports Kenya’s imports include machinery, transport equipments, motor vehicles, metals, plastics and electrical equipments. India and the UAE are the largest import partners for Kenya. In 2009, both countries accounted for more than 11% of the total import volume. Other major import partner countries are China, Saudi Arabia, South Africa, Japan and the US. Flower growing in Kenya Kenya’s horticulture sector currently ranks as one of the economy’s fastest growing industries, the third largest foreign exchange earner after tourism and tea. This has been reflected in year on year expansion on fruit, vegetable and flower exports. The industry exported 117,713 tons of flowers in 2009. Major export market is Europe where Kenya commands a 38% of the market share. Roses account for 70% of Kenya’s flower exports. 97% of flower exports is by large scaled companies mostly owned by foreigners. (Mtiambo, S. 2008). Why is Kenya so successful with flower growing? Excellent Climate: Although Kenya is located at the equator, considerable differences in altitude allow for a great variety of climatic conditions from the hot coastal plain up to the cool highlands. * Workforce of hard working, educated men and women * Reasonable infrastructure * Good investment by local and foreign investors * The capital city, Nairobi is the main transport hub and served by mainly airlines, thereby allowing for easy transportation to other countries. * Maintenance of high standards by Compliance to Codes of Practice, traceability, due diligence and ethical trading. Threats: Rising competition due to the emergence of other exported, e. g. China, who has emerged as a giant in the Asian block and is a large producer and exporter of floriculture products in Asia (Karabo et. Al, 2010). * The strong shilling, which has eroded Kenya’s market share in flowers over the past few years. * Pressure from environmental activitists relating to the carbon miles, where the longer a flower travels, the more it contributes to pollution via carbon emission. * Pest and weed control, which is very expensive and has environmental and safety implications. * Natural disasters – e. g. Volcanic ash and adverse winter conditions in 2010. S. Mbatiah, 2011). * Requirements of large buyers for quality, reliability of delivery and product differentiation. * Increasing c oncentration at various points in the value chain raises issues about access for small producers and the returns they might get. * Dominance by large scale producers, which leaves not much benefit for those at the bottom of the pyramid. (Mtiambo, S. , 2008). The Future Prospects and Trends of the Flower Industry in Kenya The new trend shows the cost of production is increasing while the overall consumption is declining. Therefore, there is need to shift more attention to consumption oriented approaches. Quality, cost and diversity of products will be determinants for survival in the industry. Consumer demand for fair traded flowers shall take a front stage. Good production practices, competitive advantages and strategic behavior will determine the sustainability of the industry. Modern distribution will dominate the market with new business drivers. Different product concepts and positioning (flowers and plants arrangements) that will satisfy the increasing consumer demand for variation in personal gifts and taste will account for a significant percentage of the turnover of the flower market. Kenya will continue to dominate production in Africa because of the favorable investment policy for the flower industry, the production conditions and the improved infrastructure. It will remain a net exporter of flower products. Like China, it should focus on research so as to improve on its local varieties, strive to develop the home market, be innovative and become a self-bearing industry. In conclusion, Kenya is a very promising country to diversify the Input supply portion of the value chain. (Karabo et. Al, 2011) Background on The Netherlands (Holland) Background and Market Information Holland is located in Europe. Germany lies on Holland’s eastern border and Belgium on Holland’s southern border. On the western and northern borders, Holland lies next to the North Sea. Holland’s total land area is 41,848 km? , of which 8478 km? are under flower and foliage crops. Holland’s land area has a water mass of 18. 41%. Holland has an estimated population of 16,491,852. The average growth rate is 0. 436%. Holland’s fertility rate is below the 2. 1 –rate required to replace natural population. Life expectancy is high; 79 for woman and 78 for men. Senior citizens are seen as a potential market group, as their children left the house and the mortgage are paid off. Thus leaving this target market group with more spending money for luxuries. The opposite of this again, shows an increase of one and two person households, creating an increase in the household market. The most spoken language is Dutch, with recognized regional languages is Low Saxon, Limburgish, Frisian, English and Papiamento. Holland declared their independence on 26 July 1581, and their independence was recognized on 30 January 1648. Holland is ruled by a Parliamentary democracy under a Constitutional Monarch. The current Monarch is Queen Beatrix. Mark Rutte from the VVD is the current Prime Minister. Holland has been playing a key role in the European economy since the 16th century. Shipping, fishing, trade and banking have been leading sectors in the Dutch economy. Holland is one of the worlds 10 leading exporting countries, and has the 16th largest economy in the world. Inflation is 1. 3% and unemployment is 4. 0%. This unemployment percentage is the lowest of all the European Union member states. Holland has a relatively low GINI coefficient of 0. 326. Amsterdam is the 5th busiest tourist destination in Europe, and gets more than 4. 2  million international visitors per year. The Aalsmeer flowers uction is the largest flower market in the world, and is run by FloraHolland. The current sales of cut flowers in Holland are â‚ ¬893 Million. The consumer market is the most important offset market in Holland, since they consume two thirds of these sales. Research had shown that Holland consumers bought fewer flowers in 2005 than in 2000. The ongoing economic crisis in Holland h ad a major effect on consumer spending. Consumers blamed it on less spending money and the high prices of flowers. Quality is one of the most important criteria for buying flowers, but the cost price has become a more important priority, especially to woman. Holland consumers also look at the perishable effect of flowers. About 60% of cut flower sales are spent on flower gift bouquets. This percentage is comparable to France. About 30% of this 60% are spent on birthday bouquets. Mother’s day is also a special day with the highest percentage of sales. In 2004 sales had grown to 26% from the 20% in 2002. Valentine’s Day has also grown the past two years, respectively to 10% and 11%. Flower Industry Background The world’s two biggest flower auctions are based in Aalsmeer (VBA) and in Naaldwijk/ Bleiswijk (BVH). On average 30 million flowers are traded in 100 000 transactions annually. During 1996 each of these markets had an annual turnover of 30 Billion Dollars. These flowers originate from countries such as Holland, Israel, Kenya and Zimbabwe. The Dutch flower auctions play a crucial role in Holland’s leadership in this type of industry. Holland provides efficient centres for price discovery and transactions between buyers and sellers. These auctions use the â€Å"Dutch auction† as the means for price discovery. These auction markets are established as cooperatives by Dutch growers. The Dutch Flower Auction Concept The Dutch auctions are characterized by using a computerized auction clock. The clock provides the buyers information regarding the producer, product, unit of currency, quality and minimum purchase quantity. Flowers are then transported through the auction room, and shown to all the prospective buyers. The clock hand then starts at a high price, which is predetermined by the auctioneer, and drops until a buyer stops the clock by pushing a button. The auctioneer will then communicate with the buyer regarding the quantity he/she would like to buy. After the transaction, the clock is reset or the flowers which are left on the floor, and the process begins all over again. Sometimes a new minimum quantity is set, until all the flowers are sold. The Dutch flower auction is an exceptionally efficient auctioning system, as it can handle a deal every four seconds. Caused by the increased imports, the VBA and BVH were close to its limits in terms of capacity, complexity and expansion room. One of the answers to these limitations was the introduction of new electronic auctioning systems. Four electronic auctioning systems were introduced to the markets. * The Vidifleur Auction (VA) The Sample Based Auction (SBA) * The Tele Flower Auction (TFA) – â€Å"Buyers have to trust the quality blindfold† * The Buying at Distance Auction (BADA) Unfortunately the VA and SBA failed, but the TFA and BADA deemed great successes. The VA was terminated in late 1991, as trading was difficult through screen-based trading. The SBA was discontinued the late 1995, due to decreased numbers of transactions per hour, and the negative effect on the functioning of growers, the auction house and buyers. The TFA The TFA was created by East Africa Flowers (EAF) after the Dutch flower auctions imposed import restrictions. During the traditional import season 30% of the EAF’s flowers could not be traded. During the summer season 100% of EAF’s flowers could not be traded. In December 1994 the EAF announced the creation of the Tele Flower Auction (TFA). On 24 March 1005 TFA was initiated with 70 buyers and 2 growers. A few months later the EAF decided that growers from other countries were also allowed to use the TFA. These were countries such as Colombia, Spain, India, France and Israel. After the TFA had been in use for one year the network increased to 35 growers and 150 buyers. Buyers bid via their personal computer (PC). Their PC’s are connected to a fully computerized auction clock. Flowers are not visible to buyers, as they are not present in the auction room. Each buyer can earmark interesting lots before the auction starts. The system will then warn the buyers before each of his earmarked lots are up for sale. The system provides information regarding the producer, product, unit of currency, quality, and minimum quantity for purchase. For each lot of flowers, 2 images are presented on the PC. The auction system remains the same: Dutch Flower Auction. The buyers see the Dutch auction clock on the PC screen. When the buyer needs to buy, he will stop the clock, the auctioneer will then communicate over an open telephone connection about the quantity of flowers he would like to purchase. The clock is then reset, and the process is repeated, until the lot of flowers is sold. All flower producers send the flowers to EAF, which is situated in Amstelveen. Distribution of the sold flowers is done by transporters of EAF. All transport costs are paid by EAF. The whole TFA process in EAF is done with considerable speed, as some deliveries are made to buyers within half an hour after a sale. 30% of TFA’s buyers regularly inspect the premises and flowers. Quality control is done by TFA’s inspectors at the producers, at the distribution pint in Nairobi and at the TFA in Amstelveen. The flower prices on average were not significantly higher or lower than the traditional Dutch flower auctions. TFA expected a 50 million dollar turnover for the growing season of 1995/1996. Compared to the seven Dutch flower auction markets, TFA ranks forth. On 14 January 2010 the Mavuno Group (Kenya) and the flower auction FloraHolland announced that all activities of TFA would be integrated into FloraHolland. This means a broader sales network to all TFA suppliers. The Mavuno Group in Kenya consists of the Oserian Development Company (250 ha farm) in Naivasha, Bloom (flower exporter/ retail supplier in Holland), World Flowers (Retail supplier in the UK), Fast Track Flowers (Retail supplier in the UK, grown product), East African Flowers (EAF, clearing in Holland) and Airflo (freight forwarding ) in Nairobi. By integrating the Mavuno group and TFA with FloraHolland all their producers were able to access to the virtual clock system, alternative digital selling systems and the direct sales of FloraHolland. For the TFA suppliers and buyers this meant increased efficiency in the logistical chain. The BADA The Buying at Distance Auction (BADA) was started by the Flower Auction Holland in 1996. The concept uses the idea that buyers can connect via a modem to several auction clocks in auction rooms. This project started off with 16 buyers and six clocks. By 1997, 60 buyers were on the waiting list. Lower travel costs were reported for this auctioning system. Some Lessons the Auctioneers Learned 1. The increased use of information technology and the separation of informational and physical trading will permit more varied forms of trading, customized to different buyers’ requirements. 2. Conformance of the actual and perceived quality of the product, logistical performance and IT performance result in an increased trust factor and to a successful electronic auction system. 3. New entrants can quickly build competitive advantage with a modern auction system model. FloraHolland Since the 1950’s Holland has been at the centre of the world flower trade. It has a functional trade system to facilitate the movement of cut flowers. Flower producers from around the world assemble at the famous flower actions. These auctions offer at a central marketplace for the buying and selling of floricultural products. Flowers are imported from various parts of the world, in order to create the largest selection possible. FloraHolland is a modern business with six auction centres, a nationally-operating intermediary organization, and an import department. FloraHolland is a primary cooperative: it is owned by its 6000 members. There is no legal separation between the cooperative and the business. This joining of forces is unique in the world. 39 Clocks are operated daily at the FloraHolland centres. This means 125 000 auction transactions every day, and 12 Billion cut flowers and over half a million plants a year. FloraHolland uses Image Auctioning. This means that flowers and plants are no longer taken into the auction rooms; but stays in the cold stores. Instead, photographs of the flowers are displayed in the auction rooms, from which the buyers can purchase. The advantage of this system is that the flowers and plants can be taken directly from the cold stores to the customer after the sale. The auctioning process continually needs to be renewed and improved. Thus, at the Aalsmeer location, all the traditional clocks have been replaced by projected clocks. These clocks have been redesigned to offer more information to buyers. Now, buyers are assisted with producer logos and photographs to encourage their purchasing decisions. FloraHolland Connect offers customized services to all buyers and their retail buyers. Their intermediaries are able to assist with targeted National and International product sourcing. These FloraHolland Connect packages include negotiation support, proper registration of all agreements between producers and buyers and comprehensible logistic agreements. They also offer assistance with resolving any disputes between producers and buyers. FloraHolland Connect is also an innovative associate for customers to offer commercial support and to contribute creative ideas. Figure 1 Top 10 Cut Flowers Auction Turnover in Euros 1 000 000 Our Current Situation De Roos Florist – Amsterdam Sloten We have a 250m? shop at 8 Ditsloot Laan in Sloten, Amsterdam. We are across the highway from Schipol Airport in Amsterdam and 15 kilometers from Aalsmeer Flower Market. Our marketing consists of a web dress and advertisements in our local newspaper, the Amsterdam News. We supply flowers and gifts for all occasions, specializing in flowers, potted plants and foliage plants. We offer a wide choice of bouquets, wines, champagnes, bears, chocolates and balloons. Orders are easily processed on our website, as customers only need to register once with all their information, and then on their second and later purchases only need to log in. Purchasing methods is possible by cash transfers, iDeal, Visa, Mastercard and American express. For a delivery in Amsterdam, same day deliveries are possible if the order was placed before 12pm. For the rest of Holland, deliveries will be made the day after the order was placed. A delivery fee of â‚ ¬8 will be charged for deliveries outside of Amsterdam. Currently we are daily buying flowers from FloraHolland at the Aalsmeer Flower Market. We have skilled employees who repack the flowers and create the bouquets. Supply Chain Diversification Definition: Supply chain diversification Supply chain diversification is a manufacturing business terminology used to describe the act of increasing choices for when to order what supplies from whom to bring products to the market. In short, it describes the abundance and flexibility of the suppliers for a certain product. Supply chain diversification is not a simple method of making suppliers compete with each other for the best price. It is more about preparing ones supply chain to be flexible for any kind of problem that the market throws at you. Advantages of diversification More emphasis on value chain innovation Efforts to reinvent the industry value chain can have a fourfold payoff: Lower costs, better product or service quality, greater capability to turn out multiple or customized product variations (upgrades), and shorter design-to-market cycles. Growers can mechanize high-cost activities, re-design production practices to improve labor efficiency, build flexibility into the â€Å"assembly† process so that customized product versions can be easily produced, and increase use of advanced technology (robotics, computerized controls, and automated/guided vehicles. ) Suppliers of parts and components, input manufacturers, distributors, and buyers can collaborate on the use of internet technology and e-commerce techniques to streamline various value chain activities and implement cost-saving innovations. A stronger focus on cost reduction Stiffening price competition gives growers extra incentive to drive down unit costs. Company cost-reduction initiatives can cover a broad front. Some of the most frequently pursued options are pushing suppliers for better prices, implementing tighter supply chain management practices, cutting low-value activities out of the value chain, developing more economical product designs, streamline order processing and pulling, reengineering internal processes using e-commerce technology, and shifting to more economical distribution arrangements and systems (e. . racking systems). Increasing sales to present customers In a mature market, growing by taking customers away from rivals may not be as appealing as expanding sales to existing customers. Strategies to increase purchases by existing customers can involve providing complementary items and ancillary services, and finding more ways for customers to use the product. Developing deeper relationships with key buyers (through personal visits , customized mailings, etc. ) will more often than not pay big dividends. Building new or more flexible competition The stiffening pressures of competition in a maturing or already mature market can often be combated by strengthening the company’s resource base and competitive capabilities. This can mean adding new competencies or capabilities (by either making or buying them), deepening existing competencies to make them harder to imitate, or striving to make core competencies more adaptable to changing customer requirements and expectations. Disadvantages Perhaps the biggest strategic mistake a company can make as the floricultural industry matures is steering a middle course between low cost, differentiation, and focusing; blending efforts to achieve low cost with efforts to incorporate differentiating features and efforts to focus on a limited (niche or cache) target market. Such strategic compromises typically result in a firm ending up stuck in the middle, with a fuzzy strategy, too little commitment to winning a competitive advantage, an average image with buyers, and little chance of springing into the leading ranks of the industry. Other strategic pitfalls include being slow to adapt existing competencies and capabilities to defend against stiffening competitive pressures, concentrating more on protecting short-term profitability than on building or maintaining long-term competitive position, waiting too long to respond to price cutting by rivals, over-expanding in the face of slowing growth, overspending on advertising and sales promotion efforts in a losing effort to combat the growth slowdown, and failing to pursue cost reductions and/or production efficiencies soon enough or aggressively enough. Supply Chain Decisions Supply chain management decisions are classified into two broad categories strategic and operational. As the term implies, strategic decisions are made typically over a longer time horizon. These are closely linked to the corporate strategy, and guide supply chain policies from a design perspective. On the other hand, operational decisions are short term, and focus on activities over a day-to-day basis. The effort in these types of decisions is to effectively and efficiently manage the product flow in the strategically planned supply chain. There are four major ecision areas in supply chain management: 1) location, 2) production, 3) inventory, and 4) transportation (distribution), and there are both strategic and operational elements in each of these decision areas. 1. Location Decisions: The geographic placement of production facilities, stocking points, and sourcing points is the natural first step in creating a supply chain. The location of facilities invol ves a commitment of resources to a long-term plan. Once the size, number, and location of these are determined, so are the possible paths by which the product flows through to the final customer. These decisions are of great significance to a firm since they represent the basic strategy for accessing customer markets, and will have a considerable impact on revenue, cost, and level of service. These decisions should be determined by an optimization routine that considers production costs, taxes, duties and duty drawback, tariffs, local content, distribution costs, production limitations, etc. Although location decisions are primarily strategic, they also have implications on an operational level. 2. Production Decisions A. The strategic decisions include what products to produce, and which plants to produce them in, allocation of suppliers to plants, plants to DCs, and DCs to customer markets. As before, these decisions have a big impact on the revenues, costs and customer service levels of the firm. These decisions assume the existence of the facilities, but determine the exact path(s) through which a product flows to and from these facilities. Another critical issue is the capacity of the manufacturing facilitiesand this largely depends the degree of vertical integration within the firm. Operational decisions focus on detailed production scheduling. These decisions include the construction of the master production schedules, scheduling production on machines, and equipment maintenance. Other considerations include workload balancing, and quality control measures at a production facility. * Increase production of summer flowers and lilies * Increasing scale of production of Roses and deliver to supermarkets and other mass retail chains B. Market channels in production decisions * Value-oriented customers Value in terms of prices has a significant effect on flower and plant expenditures and eventually plays an important role in explaining part of the trends in marketing these products. For example, the flats in the bedding and garden segment are assumed to be cheaper flower products compared to the others. Therefore, they are increasingly available in mass merchandise stores. People with low income who tend to buy these flowers are attracted to these low-price super centers. Value segmentation appears to be the most important market driver in selling De Roos flowers. Value will play an important role in raising sales from De Roos florist by introducing cheaper bedding plant cultivars and make large-volume sales through mass merchandise stores and supermarkets. Price will play a selective role in raising sales from potted flowering plants, foliages and cut flowers. With the increasing demand for large containers that have high-quality combinations, roses would continue to be expensive for value-oriented consumers. * Convenience Convenience will have an important role in raising sales from cut flowers and potted flowering plants. The indulgence market segment also plays a moderately important role in selling Roses, and other plant products. These market segments will provide broad opportunities for cut flower products that are mainly used as gift items, especially during calendar holidays and for special occasions. Cut flowers and potted flowering plants also fit into the coordinated and seasonal fashion trend and mostly they are a key element in indoor designs and decorations. As foliage plants continue to be widely used for interior decorations, the fashion and design market segment would also play a significant role in selling these plants. Convenience is becoming increasingly important for consumers when buying different flower and plant products. An increasing number of consumers are busy and perceive that they have less time for feeding and watering plants. Or some consumers want to buy plants and flowers that do not take weeks and months to mature. Others want to buy them in convenient containers and pots or they want products that are easily portable from one place to the other. Convenience is also one of the key factors in selling De Roos flower products. In particular, convenience would have an important role in raising sales from ut flowers and potted flowering plants. Convenience-oriented consumers will not be attracted to some of the bedding and garden plants, particularly the flats. Because these consumers do not have the time to continuously water and feed plants and flowers. They rather look for larger near-mature potted flowering plants or cut flowers. Large container and pot innovations that make plant ha ndling and growing easier or packaging innovations that improve the outside look of the container maintaining and improving plant quality would help to increase sales in this market segment. Cut flowers are coming well prepared and ready for use in arrangements, boutiques or consumers can buy them in single stems and they are easily transportable products. * Indulgence Indulgence considers a broad array of flower and plant attributes designed to meet consumers’ desires, as opposed to their needs. In this market segment, the consumers have unique attachment to the products, and they are buying not the item but the experience expressed in some ways. These consumers will buy the product because they might have connection to the products since childhood, they may like gardening and working with the plants, etc. In this group, there are also luxury or impulse buyers who pursue their intense emotion in purchasing flowers and plants. Holidays and special occasions are other aspects of indulgence that influence the market for flowers and plants. Cut flowers are the leading floral products that are used as gift items, especially during calendar holidays and for special occasions. They are also becoming increasingly appealing to the impulse purchaser. Therefore, the indulgence market segment will provide broad product development opportunities for De Roos florist. In the indulgence market segment, foliage plant will benefit from different consumer groups that purchase these plants for different purposes. Some consumers may want to have these plants, simply because they like them from experience or they know the performances of the plant from previous years. 3. Inventory Decisions These refer to means by which inventories are managed. Inventories exist at every stage of the supply chain as either raw material, semi-finished or finished goods. They can also be in-process between locations. Their primary urpose is to buffer against any uncertainty that might exist in the supply chain. Since holding of inventories can cost anywhere between 20 to 40 percent of their value, their efficient management is critical in supply chain operations. It is strategic in the sense that top management sets goals. However, most researchers have approached the management of inventory from an operational perspective. These include deployment strategies (push versus pull), control policies the determination of the optimal levels of order quantities and reorder points, and setting safety stock levels, at each stocking location. These levels are critical, since they are primary determinants of customer service levels. 4. Transportation Decisions The mode choice aspects of these decisions are the more strategic ones. These are closely linked to the inventory decisions, since the best choice of mode is often found by trading-off the cost of using the particular mode of transport with the indirect cost of inventory associated with that mode. While air shipments may be fast, reliable, and warrant lesser safety stocks, they are expensive. Meanwhile shipping by sea or rail may be much cheaper, but they necessitate holding relatively large amounts of inventory to buffer against the inherent uncertainty associated with them. Therefore customer service levels and geographic location play vital roles in such decisions. Since transportation is more than 30 percent of the logistics costs, operating efficiently makes good economic sense. Shipment sizes (consolidated bulk shipments versus Lot-for-Lot), routing and scheduling of equipment are key in effective management of the firms transport strategy. Kenya’s Cut Flower Cluster Value Chain Growers Growers grow flowers, suppliers procure them, they then sell these flowers to the wholesalers or retailers before the flowers finally reach consumers. This sounds like a simple value chain, except that the players involved come from all over the world. The vast majority of flowers are grown in Europe, Africa, Asia and South America and the consumer base comprises of Western Europe along with North America and Japan. However, despite this fact, the biggest trade center is the Netherlands. The world cut flower trade is characterized by a high degree of concentration by sources. Germany is the main market for imports, and the Netherlands the worlds leading exporter. Exports from the Netherlands to Germany are a principal component of the world cut flower trade; they make a significant part of the intra EU trade, which itself accounts for a large part of the world trade. In the Americas, Colombia is the major supplier to the United States. Japan receives its supplies from a more diversified base, with Taiwan, New Zealand and Europe being the most important ones. Since the 1950? s Netherlands has been at the center of the world flower trade. It has a good and functional trade system to facilitate the movement of cut flowers, which form a majority of flowers which are traded. Flower growers from all over the world assemble at the famed flower auctions to find suitable buyers for their produce. These flower auctions offer a central marketplace for buying and selling of floricultural products with good facilities for growers and buyers and effective logistics. Flowers are imported from various countries in order to create the largest possible assortment of flowers. This allows the industry to overcome the handicap of wholesalers not having the opportunity to import directly out of these countries. Roses Roses need labour-intensive watering, pruning and treating before they can be clipped and flown daily to buyers in Amsterdam and London. The best are sold through (Dutch) auctions to florists; the less good end up in European supermarkets. Kenya emerged as a flower power when Israel scaled down its own industry. It has since lost business to neighbouring Ethiopia, which offers tax breaks and better security, but Naivashas perfect intensity of sunlight and days of near-constant length should keep it on top. In any case, the owners are stoical. Figure 2 EU Consumption of Cut Flowers and Foliage Inventory Control Inventory is the stored accumulation of any item which can be used in a process; usually applies to material resources but may also be used for inventories of information. This can include: raw materials, finished goods, and work – in – process. Operations Management; 6th Edition; Slack, Chambers, Johnston) As a retailer / wholesaler / distributor, we have decided to follow the ‘Single – Period Model’ for stock inventory. This model is used to handle ordering of perishables and items that have a limited shelf life. Currently as a retailer, we function with the following Inventory which is ordered, distributed, processed and kept on site: * Cut flowers * Ex. Roses, carnations, chrysanthemums, orchids * supply flowers to wholesale florists across Netherlands and Europe * Potted flowering plants * Ex. Poinsettias, chrysanthemums, Easter lilies, African violets * Pot and plant shipped to market * Foliage plants * Ex. Philodendrons, dieffenbachia’s, figs, scheffleras, dracaenas * Potted plants to be grown and sold for their leaves instead of their flowers (houseplants) * Flower Themes: * By Occasion Birthdays, anniversary, sympathy * By Sentiment Congratulations, Romantic occasions, thank you, get well soon * By variety Roses, tulips, plants and orchids Inventory Rules Rules which we will follow in order to optimise our Inventory Decision making will include: 1) Simplistic inventory policies work well. Using the ABCD inventory policies or simple weeks-of supply rules frequently get 15-30% more inventory than needed and lower service levels. 2) Holding all items at all levels in our finished goods network will give us the highest service levels. Companies with multiple tiers of finished goods distribution frequently hold wrongs amount of inventory in wrong locations and suffer out of stocks despite high inventory investments. 3) It’s fine for each location or tier in the supply chain to set its own service level targets and replenishment planning frequencies. The lack of synchronized inventory policies across manufacturing stages and distribution tiers builds up unneeded inventory across the supply chain. 4) Inventory minimization should is our goal. 5) Using purchase orders or release notices for replenishment is efficient. A growing number of companies that use cut purchase orders or release notices for their suppliers are discovering it is more effective to ask suppliers to take responsibility for maintaining inventory between min/max levels. These misconceptions around inventory impact both top line and bottom line revenue. In order to improve our inventory turnover, we have followed the following guidelines: * Keeping our purchases in small batches to keep items fresh, reduce maintenance labour, and maximize the use of our selling space * Not filling prime retail space with boring inventory items * Large volume shipments may have a lower initial unit cost but when considering the additional floor time to maintain the volume and take the risk of not selling all items before the stock wilts might not be worth the savings * To fill the empty spaces, we can display already made arrangements which can be used for special occasions * Track our profitability by categorising the perishability of: * Cut flowers / Potted Flowering plants / Foliage Plants * Cut flowers and blooming plants typically have greater perishability that demands closer accounting and greater mark-ups. * Use green plants as the safest inventory back-up for funerals and holidays. * Keeping a reasonable mark-up because of the differing deg rees of perishability and maintenance one should use a different mark-up factor for the different categories of inventory. However, because of the high perishability potential, leftovers, and cooler expense, our inventory needs the highest mark-up. * Maintaining a high standard of quality as this: * Reduces spoilage of flowers * Sells easier and faster * Easier to maintain. * Less risk of problems * Commands a greater mark-up * Ability to Upgrade into special containers * Ability to add an array of items including figurines, trellis, balloons, twigs * Design into a unique arrangement * Have something unusual. Types of inventory There are currently 5 types of inventory. These include: 1. Buffer 2. Cycle 3. De-coupling 4. Anticipation 5. Pipeline Our current day to day inventory decisions are based on: 1. How much to order? In order to determine the amount of inventory to order we consider the difference between the costs associated with holding stock and compare it against the costs associated with placing an order. * We use a well known formula to assist in the abovementioned calculations is the Economic Order Quantity (EOQ) formula. * By using different stock behaviour assumptions, the EOQ formula can be adapted to different types of inventory profile. * Inventory costs directly associated with the size of the order include: * cost of placing the order * price discount costs * Stock out costs * Working capital costs * Storage costs * Obsolescence costs * Operating inefficiency costs 2. When to order? * This depends partly on the uncertainty of demand. When the order arrives, a certain level of average safety stock is retained. This is how orders are usually timed. * The level of safety stock is influenced by the viability of the lead time usage distribution which is made up of: * demand * lead time of supply * Inventory levels should be continuously reviewed when using the re-order level as a trigger for placing replenishment orders 3. How to control inventory * Computer based information systems are used to manage inventory. These systems have the following functions: * updating stock records * generation of orders * generation of inventory status reports and demand forecasts Supply Chain for Import The figure below describes the domestic part of the export supply chain. The largest flower companies have vertically integrated most of (and in at least one case, all of) the functions described above. However, the social and environmental standards used in the flower industry do not apply to parts of the supply chain beyond the â€Å"Cold room†. When the stock arrives on the aircraft, the aircraft needs to travel at a constant cool to cold temperature to the final destination. In order to maintain the freshness of the inventory throughout the supply chain, the following needs to be considered when transporting and storing: * Inventory, flowers and plants, need to be stored in appropriate packaging to enable it to have as little human handling as possible. Cut flowers and potted plants need to be kept and maintained at cool temperatures throughout the end to end supply chain * Distributors need to drive improvements in flower and plant temperature management during distribution (demand-pull) * Day-ahead flower and plant ordering by growers is requ ired to ensure that adequate time is available to cool the products prior to transportation * Transportation should offer precooling services to ensure that all flowers and plants are transported within the desired cool temperature * Investing in equipment needed to ensure adequate initial cooling and to prevent breaks in the supply chain end to end Source: http://www. nri. org/projects/NRET/2607. pdf Export and Import Regulations and Taxes Duties and VAT It is vital to ensure that you pay the correct duties and VAT on all products that you import. There are number of different excise duties (e. g. Alcohol or Tobacco duty) that apply to goods, and you need to be sure that you are paying the correct rates. As small businesses may not be VAT registered, the rules will vary depending on the product, you should be certain to clarify the duty or VAT you will need to pay, and how this will change if you register for VAT in the near future. Depending on the amount you import and export, some business will be entitled to claim back some of the duty or VAT payments that you make. A number of businesses are also entitled to delay payment of duties (mainly for goods imported from outside the EU). Customs Entries If you are importing from outside of the EU or from special EU territories (including the Canary Islands and the Channel Islands), then the goods you bring in will almost always need to be entered and declared to Customs and Excise as they arrive (Either yourself or by an approved agent). If you are importing or exporting from within the EU, then a customs declaration is not usually necessary. Although if you are VAT registered, and your EU imports or exports exceed a set amount (currently ? 233,000 a year) you will need to fill in a supplementary declaration form each month. Payment Currency It is important to remember that when you import or export goods, you may be required to pay (or accept payment) in a number of currencies. You need to arrange with the supplier or buyer in advance who will bear the costs of exchanging the currency (e. g. From Euros to Pounds); this can affect the costs a considerable amount and may need some negotiation to find the fairest option. In most cases the buyer (importer) will pay the currency conversion charges, although it now a lot easier for payment to be converted as it enters the bank account (particularly with Euro payments). Open Account (OA) This type of payment is preferable to small businesses when importing, helping you keep positive cash flow. It is however much more preferable to have payment in advance when exporting. Documentary Letter of Credit (LC) This is where the customer’s bank provides a ‘letter of credit’, which promises to pay the supplier as long as the terms are met (and the bank has the money to pay) (ILC). There s also a ‘confirmed irrevocable letter of credit’ (CILC). This is a promise by a UK (or a large world bank) to pay the supplier, and is even more secure than an ordinary letter of credit. A letter of credit is the most secure way to be paid, but you must be careful to ensure that all documents related to the sale are correct, as a serious mistake can make the letter of credit worthless. Terms of Delivery It is essential that all importing or exporting be covered by an effective set of delivery terms. In the event of a late or damaged delivery, the costs to the importer could be huge. Incoterms are a set of international standard definitions that allow terms to be set without the risk of confusion, even when translated into different languages Incoterms help to set out fair compensation rules in the event of a late, damaged, or missing delivery. They can also set out fair payment details once a complete delivery has been made. Import Duties All merchandise coming into the Netherlands must clear Customs and is subject to customs duty assessment unless the goods are duty or tax exempt by law. Customs duties are, generally, an ad valorem rate (a percentage), which is applied to the transaction value (EU Euro) of the imported goods based on the cost of the goods, insurance, and freight charges. A commercial shipment below 22 Euros: no duty and no VAT collected. * A commercial shipment between 22 Euros and 150 Euros: no duty but VAT is collected. * A commercial shipment over 150 Euros: duty and VAT are collected. Import Taxes On imports the tax is assessed on the CIF d uty-paid value at the port of entry in the Netherlands; if excise taxes or other charges (excluding VAT) are applicable, the amount levied also is included. The VAT rate is the same for both domestic and imported goods Import Regulations of the Netherlands on Plant Health Phytosanitary import requirements of the Netherlands are directly based on the plant health regime of the European Community and its Member States. The purpose of these requirements is to prevent the introduction and spread of (quarantine) pests and diseases within the European Union. Points of entry All points of entry of the Netherlands can be used for the import of plants or plant products for which a phytosanitary certificate is required. The following main points of entry are in use in the Netherlands: * The Airport of Amsterdam Schiphol * The Airport of Rotterdam * The Airport of Maastricht List of importers and Approved places of inspection Upon entry all regulated objects are subject to inspections by the Netherlands Plant Protection Service. Inspections are carried out at an approved place of inspection. In the Netherlands most of these inspections are carried out at the place of destination, such as a place of production, approved by the Netherlands Plant Protection Service, in line with Council Directive 2000/29/EC. Import Declaration Form (IDF) An IDF must be applied for and obtained from the Kenya Revenue Authority for any Commercial Importation. The Importer is responsible for applying for the IDF but may consult us for purposes of Customs Classifications which form the backbone of the information drawn from the Pro-Forma Invoice. The IDF Fee is 2. 75% of the CIF Value of the goods. A minimum payment of Ksh. 5000/= is payable for the IDF to be issued, while the difference if any, will be paid alongside the Import Taxes. Quality Inspection The Kenya Bureau of Standards has appointed two agents namely INTERTEK and SGS for the Pre export Verification of Conformity inspection of the commodities listed on the Guidelines referred bellow. These agents will issue to the Shipper/Supplier a Certificate of Conformity and the Test Results. An IDF will be required before any Inspection can be performed Customs Import Entry The following documents are required for Customs Import Entry Purposes 1. Original Commercial Invoice 2. Packing List 3. Original Bills of Lading – Two Original 4. Original Certificate of Conformity 5. Original Test Result/Report/Analysis 6. Original Certificate of Origin for Preferential Trade Area Partners e. g. COMESA. 7. Import Declaration Form and the Receipt 8. Insurance Debit Note 9. Importers Declaration(C52) Special Permits/Certificates Certain types of Importations are subject to control measures and therefore Permits must be obtained from the concerned authorities such as: * Department of Agriculture (KEPHIS) Plants Importations Permit * Fumigation Certificates The role of the exporters Exporters play an important role in the flower supply chain. They have to perform several functions, and if they are unable to, these functions act as barriers to entry. According to Dolan et al. (1999), exporters have to ensure consistency of quality, reliability of supply and the perseverance of the products. Therefore, they have to help manage the production and processing systems to ensure quality, install control mechanisms to ensure reliability of supply and monitor the use of chemicals to ensure perseverance. Exporters also have to make sure that post-harvest care is done properly so that the products have a longer shelf life. The retail sector demands flexibility and reliability in the supply, and so logistics and transport are two of the most important aspects in this chain (the products only have a short period in which they can be marketed). The exporters, so as to be able to react quickly to orders, have installed a Just-in-Time (JlT) management system. This system reduces time between harvesting, packing and delivery. Efficient logistics depend on the quick exchange of information and knowledge between the participants in the global competitive chain. Integrating the participants in the chain electronically could accomplish this. Thus, the flow of the products throughout the chain could be traced. Exporters have to secure air cargo space to be able to transport the products rapidly in a reliable manner. Large exporters are able to pre-book airfreight services because they have the resources and volumes required. Small exporters, however, have to compete with passengers for air space, which can only be arranged just before departure. Exporters need to constantly develop new products and diversify the existing ones. By working closely with the importers, this could be achieved. Once they develop new products and innovative packaging, they reduce the risk of being substituted by the supermarkets. Exporters are also dependent on importers for market information about the changes in consumer preferences, as well as for technical information. With this information the exporter is able to ensure that the product mix and product packaging adhere to the customer preferences. | | | | | | | | | | | | | | Distribution and Transportation ProcessA proper management of the logistics system, that is, the unique combination of packaging, handling, storage and transportation, will ensure that the product is imported and made available to the consumer at the right time and place and in the right condition. International logistics allows country’s to export products in which they have a completive advantage and import products that are either unavailable at home or produced at a lower cost overseas. Natural resource advantages and low-cost labour has enabled countries like Kenya to export flowers to places like the UK by airfreight where in turn the products are distributed nationwide by air, water or by truck. (Seyoum)Flowers take a number of routes to the consumer, depending on where they are grown and how they are to be sold. Some growers cut and pack flowers at their nurseries, sending them directly out to the consumer by mail order. Some flowers are sent to packing companies, who grade the flowers and arrange them in bunches for sale to supermarkets or to deliver by mail order. Some flowers are graded and sleeved by the growers and sold at wholesale flower markets; the wholesalers then sell them on to florists who condition and arrange the flowers for the consumer. Africa is currently responsible for 95% of Dutch rose imports. Our import roses are primarily from Kenya and Ethiopia. The import roses include many different flower types, with a relatively long shelf-life. We have recently begun offering boxed import roses. The advantage of boxed import roses is that the roses from Kenya and Ethiopia can be directly resold to Dutch exporters. The accelerated process gets the roses to the Dutch market two days earlier than those imported in water. Furthermore, we offer boxed import roses at even better prices. Thanks to the extensive purchasing organisation and partnerships with various growers, we are able to offer (almost) all import roses on a daily basis. Even the cultivars that are not auctioned are available from us. We are therefore able to offer you a total package of import roses. Billions of flowers and plants are distributed through the wholesale markets in Holland each year. The flowers are shipped fresh daily to florists, achieving a reliable rate of safe delivery. Most shipping goes by high speed trains. The rest reach their destination by air. Specialized packaging and handling help make the worldwide trade possible. Buyers can make Dutch flower market purchases live from anywhere in the world and have delivery usually within 24 to 48 hours. Most Dutch flowers are sold to European countries, but the eastern United States and the Chicago area are sizable importers as well. (Unknown)Some flowers are sent packed flat in boxes. This enables large amounts of flowers to be packed in small spaces like aircraft holds. Other flowers cannot survive for long periods out of water such as orchids and water lilies. These are either sent with their own sealed water container (called picks) on each stem end for more expensive or tropical flowers or are transported in buckets of water. The latter method extends the life of flowers and reduces labor time as flowers are ready for sale, but obviously also reduces the amount of flowers that can be transported as they are much heavier than dry-packed flowers and hence air transportation charges are higher. (Unknown)The Cool ChainRoses are perishable goods and therefore require a little bit of extra care and attention when they are being exported or transported. Though we might not consider flowers and plants to be perishable in the same way that food stuffs are, we know that cut flowers will continue to bloom but storing them in very low temperatures will slow down their physiological development significantly, which prolongs their life and keeps them fresher for longer. With the exception of tropical breeds, cut flowers and plants should be cooled rapidly to temperatures of around 33-35 F throughout their travelling time. Truck transport of flowers can be a preferable method because temp

The Old British Imperial System essays

The Old British Imperial System essays The British Imperial system was fundamentally based on the policy, mercantilism. Where each colonial possession should provide wealth to the mother country, in these circumstances, the American colonies provided wealth to the British. Colonies were not supposed to compete with the mother countrys home industries. The British Empire was a closed system, designed to keep competition out. The mercantile policy turned Britain into the preeminent center of trade in the world. Through out the seventeenth and eighteenth centuries, the basic purpose of the colonies was to support the mother country. The colonies acted as tenants for the British. The colonies had to produce raw materials, such as, tobacco, corn, tomatoes, potatoes, timber, indigo and beans. Britain produced a surplus amount of goods, and the colonies were forced to buy the surplus, there for the colonies can also be viewed as an outlet for surplus manufacturers. The colonies were also and outlet for surplus population. For example, some religious groups, such as the Quakers, were persecuted through out Britain; consequently they were forced to move to the new world. In order to instigate the mercantilist policy, on the colonies, the British composed a series of enactments. The most important act passed, was the navigation acts, implemented to regulate trade and commerce. The acts limited the colonies to trading exclusively with the British. The vessels had to be assembled by shipbuilders of the British Empire, and three quarters of the crew, had to be English. To expand the mercantilist policy, the British implemented restrictions on colonial manufacturing and trade. The Wool Act of 1699 stated that none of the colonies could sell or produce wool, the Hat Act of 1732, made the British the primary manufacturers and sellers of hats. The Iron Act of 1750, declared that Iron was to be sold and produced, only by the British. The Mol ...

The Sumatra Earthquake of December 26, 2004

The Sumatra Earthquake of December 26, 2004 A minute before 8 oclock in the morning local time, a colossal earthquake began to shake the northern part of Sumatra and the Andaman Sea to its north. Seven minutes later a stretch of the Indonesian subduction zone 1200 kilometers long had slipped by an average distance of 15 meters. The moment magnitude of the event was eventually estimated as 9.3, making it one of the largest recorded earthquakes since seismographs were invented around 1900. The shaking was felt throughout southeastern Asia and caused devastation in northern Sumatra and in the Nicobar and Andaman Islands. The local intensity reached IX on the 12-point Mercalli scale in the Sumatran capital of Banda Aceh, a level that causes universal damage and widespread collapse of structures. Though the intensity of shaking did not reach the maximum on the scale, the motion lasted for several minutes- the duration of shaking is the main difference between magnitude 8 and 9 events. A large tsunami triggered by the earthquake spread outward from off the Sumatran coast. The worst part of it washed away whole cities in Indonesia, but every country on the shore of the Indian Ocean was also affected. In Indonesia, some 240,000 people died from the quake and tsunami combined. About 47,000 more people died, from Thailand to Tanzania, when the tsunami struck without warning during the next few hours. This earthquake was the first magnitude-9 event to be recorded by the Global Seismographic Network (GSN), a worldwide set of 137 top-grade instruments. The nearest GSN station, in Sri Lanka, recorded 9.2 cm of vertical motion without distortion. Compare this to 1964, when the machines of the World Wide Standardized Seismic Network were knocked off scale for hours by the March 27 Alaskan quake. The Sumatra earthquake proves that the GSN network is robust and sensitive enough to use for expanded tsunami detection and warnings if the right resources can be spent on supporting instrumentation and facilities. The GSN data includes some eye-popping facts. At every spot on Earth, the ground was raised and lowered at least a full centimeter by the seismic waves from Sumatra. The Rayleigh surface waves traveled around the planet several times before dissipating. Seismic energy was released at such long wavelengths that they were a substantial fraction of the Earths circumference. Their interference patterns formed standing waves, like the rhythmic oscillations in a large soap bubble. In effect, the Sumatra earthquake made the Earth ring with these free oscillations like a hammer rings a bell. The notes of the bell, or normal vibrational modes, are at extremely low frequencies: the two strongest modes have periods of about 35.5 and 54 minutes. These oscillations died out within a few weeks. Another mode, the so-called breathing mode, consists of the whole Earth rising and falling at once with a period of 20.5 minutes. This pulse was detectable for several months afterward. (A startling paper by Cinna Lomnitz and Sara Nilsen-Hopseth suggests that the tsunami was actually powered by these normal modes.) IRIS, the Incorporated Research Institutions for Seismology, has compiled scientific results from the Sumatra earthquake on a special page with plenty of background  information. The U.S. Geological Survey also offers a number of beginner and non-technical resources about the quake. At the time, commentators from the scientific community decried the absence of a tsunami warning system in the Indian and Atlantic oceans, 40 years after the Pacifics system began. That was a scandal. But a greater scandal was the fact that so many people, including thousands of supposedly well-educated first-world citizens who were there on vacation, just stood there and died as the clear signs of disaster arose before their eyes. That was a failure of education. A video about the 1998 New Guinea tsunami- was all it took to save the lives of a whole village in Vanuatu in 1999. Just a video! If each school in Sri Lanka, each mosque in Sumatra, each TV station in Thailand had shown such a video once in a while, what would the story have been instead that day?