Case Study of Fdi in India vs China

A project ReportOnCASE STUDY OF FDI IN INDIA VS CHINASubmitted toMrs. Smita KashiramkaByRamya Singh2010B3A2613PIn Fulfilment ofStudy oriented ProjectBIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE, PILANI30th November 2012| | | | | | | Abstract The report begins with the FDI definition and FDI reference with respect to India and its sect-oral and regional comparisons. This report undertakes a comparative analysis of the foreign direct investment (FDI) flowing from the multinational corporations (MNCs) into China and India.Examining the prevailing investment climate to account for the differences in FDI between the two countries and finally suggest some recommendations for India to achieve higher FDI. A review of Mckinsey report on India’s economic performance and growth potential has been done at the end of the report. Acknowledgements A Study oriented project is a golden opportunity for learning and self development. I consider myself very lucky and honoured to have been able to ge t this opportunity of doing such a project. My grateful thanks to Mrs.Smita Kashiramka mam who in spite of being extraordinarily busy with her duties, took time out to hear, guide and keep me on the correct path. I do not know where I would have been without her. Ramya Singh ID- 2010B3A2613P Table of Contents- 1. Introduction 2. 1. FDI definition 2. 2. Benefits of FDI 2. 3. FII’s 2. FDI Routes to India 3. 4. Forbidden territories 3. 5. Forms of FDI Investment 3. 6. Automatic Route 3. 7. Government approved Route 3. Amendments in FDI and Industrial Policies 4. 8. FEMA 4. 9. FIIA 4. Status of FDI in India 5. Round Tripping of FDI to China 6. Directional comparison of FDI in India and China . Recommendations for improving FDI to India 8. FDI in Retail 9. Review of Mckinsey Report of FDI in India 10. Conclusion 11. References 1. INTRODUCTION Background The official statistics of foreign direct investment (FDI) inflows in China and India exhibits a remarkable discrepancy that cons equently establishes the unmatched superiority of China in attracting FDI inflows. China ventured into the path of liberalization in 1979 by gradually liberalizing and opening up its economy. Removal of restrictions on inward FDI has figured out to be one of the prominent features in the Chinese reforms.China has indeed achieved remarkable success in FDI since it formally opened its door to FDI with the passage of the â€Å"Law of People’s Republic of China on Joint Ventures using Chinese and Foreign Investment† in 1979. By virtually having their non-state sector (counterpart of India’s private sector) run on free market principles and setting up large special economic zones, encouraging competition among Chinese provinces to attract FDI, offering substantial tax concessions, permitting the leasing of land and property, introducing overnment guarantees for investment and special arrangements regarding retention and repatriation of foreign exchange, China has bee n able to attract significant sums of FDI inflows. India, the only developing country of size and diversity of industrial base comparable to China, has also adopted a similar path of liberalization since 1991, by slowly shedding its FDI restrictions and allowing FDI through automatic route barring a few strategic industries of security concern .It is important to note that in 1997, India had joined the band of the top ten developing country recipients of FDI flows, whereas China had already acquired prominent positions at least since 1991. UNCTAD’s ranking of countries based on FDI relative to the size of the economy was 121 for India and 61 for China for the period 1988 to 1990. The corresponding figures for 1998-2000 are 119 and 47 respectively. While India has improved marginally, China reveals a huge success in terms of FDI ranking In 2002, the A. T. Kearney survey also found that China outranked the U.S. as the most attractive destination for FDI. The importance of FDI t o China is readily apparent. These discrepancies in the relative FDI attracting capabilities of India and China raise some important fundamental questions about the actual FDI potential of India. Can India possibly become an FDI destination as attractive as China?. The Report addresses this question at large. 1. 1 Definition of ‘Foreign Direct Investment – FDI' FDI refers to an investment made to acquire lasting interest in enterprises operating outside of the economy of the investor.Further, in cases of FDI, the investor? s purpose is to gain an effective voice in the management of the enterprise. Components of FDI- The components of FDI are equity capital, reinvested earnings and other capital (mainly intra-company loans). As countries do not always collect data for each of those components, reported data on FDI are not fully comparable across countries. In particular, data on reinvested earnings, the collection of which depends on company surveys, are often unreporte d by many countries. – United Nations Conference on Trade and Development (UNCTAD)Foreign investment refers to investments made by the residents of a country in the financial assets and production processes of another country. It can come in two forms: Foreign direct investment (FDI) and foreign institutional investment (FII). FDI or Foreign Direct Investment is an investment that a parent company makes in a foreign country. FDI brings in capital but also helps in good governance practices and better management skills and advanced technology infusion. But, FII or Foreign Institutional Investor is an investment made by an investor in the markets of a foreign nation.Foreign Institutional Investment is also known as hot money as the investors have the liberty to sell it and take it back. The FII investment flows only into the secondary market. It helps in increasing capital availability. Objective of the Study:- a) To analyze the pattern and direction of FDI flow in India. b) To identify factors those are responsible for comparatively lesser flow of FDI to India c) To identify reasons for regional imbalances in terms of flow of FDI. d) To review FDI policy of India e) To address various issue and concern relating to FDI. f) To make policy recommendation to improve the level of FDI.Nature and Source of Data:- The relevant data are collected from papers published(sources mentioned in the last)various sites of Government of India, Reserve Bank of India and Mckinsey report published by Mckinsey global institute, papers published etc. Other references have been mentioned at the end of the report. 1. 2 Benefits of FDI to the host country- * FDI not only brings in capital but also helps in good governance practices and better management skills and even technology transfer. Export market gets a boost due to this and consequently lesser import dependence.Foreign Investors invest in social, economic infrastructure, financial markets and marketing system help the dev eloping nations on the path of industrialization and modernization. Demand for various inputs give rise to development of the supplying industries, generating income, leading to a spur in the production process and a better living standard of the people employed in these industries. Quality products are available to the consumers at low prices. Foreign investment serves as boon to the government by bringing demand for various inputs giving rise to development of the supplying industries. . 3 FII's- Generate Enhanced flows of equity capital, improving capital markets, include reduced cost of capital, imparting stability to India's balance of payments, institutionalizing the market, improving market efficiency and strengthening corporate governance. 1. Foreign direct investment- the Indian scenario 2. 1 Forbidden Territories – FDI is not permitted in the following industrial sectors: †¢Arms and ammunition. †¢Atomic Energy. †¢Railway Transport. †¢Coal and lig nite. †¢ Mining of iron, manganese †¢Gambling and Betting †¢Business of chit fund †¢Trading in Transferable Development Rights (TDRs). Activity/sector not opened to private sector investment. 2. 2 Foreign Direct Investment (FDI) is permitted as under the following forms of Investments – †¢Through financial collaborations. †¢Through joint ventures and technical collaborations. †¢Through capital markets via Euro issues. †¢Through private placements or preferential allotments. * Through financial collaborations-â€Å"Foreign collaboration includes ongoing business activities of sharing information related to financing, technology, engineering, management, consultancy, logistics, marketing, etc. which are generally, offered by a non-resident (foreign) entity to a resident (domestic or native) entity in exchange of cheap skilled and semi-skilled labour, inexpensive high-quality raw-materials, low cost hi-tech infrastructure facilities, stra tegic (favourable) geographic location, with an approval (permission) from a governmental authority like the ministry of finance of a resident country. †The examples of foreign collaboration between an Indian and abroad entity: * ICICI Lombard GIC (General Insurance Company) Limited is a financial foreign collaboration between ICICI Bank Ltd. India and Fairfax Financial Holdings Ltd. , Canada. * ING Visa Bank Ltd. is a financial foreign collaboration formed between ING Group from Netherlands and Visa Bank from India. * Tata DOCOMO is a technical foreign collaboration between Tata Teleservices from India and NTT Decoma, Inc. from Japan. * Through joint ventures and technical collaborations-A joint venture is a new enterprise owned by two or more participants. Joint ventures are formed with several motives:- The main motive is to share the risks.A small firm with a new product idea that involves high risk and requires relatively large amounts of investment capital may form a joi nt venture with a large firm. A foreign company can invest in an Indian company through a joint venture agreement in the areas which are otherwise not reserved exclusively for the public sector or which are not under the prohibited categories such as real estate etc. For such foreign investments into India, a two tier approval mechanism has been provided. * Through capital markets via Euro issues- Foreign Investment through GDRs (GLOBAL DEPOSITORY RECEIPTS) – Indian companies are allowed to raise equity capital in the international market through the issue of Global Depository Receipt (GDRs). GDR investments are treated as FDI and are designated in dollars. * Use of GDRs –The proceeds of the GDRs can be used for financing capital goods imports, capital expenditure including domestic purchase/installation of plant, equipment and building and investment in software development, prepayment or scheduled repayment of earlier external borrowings. Investment in stock markets and real estate will not be permitted. FDI comes through ) Automatic route and b) Govt. approval route. 2. 4 Automatic route- Under the RBI’s Automatic Route, the Indian companies can issue shares up to prescribed percentage to person’s resident outside India without obtaining prior Permission either of the Government or RBI. These companies must be engaged in the Permissible activities under the FEMA. Companies engaged in manufacture of items, Reserved for SSI sector or those manufacturing items requiring industrial license or engaged in areas such as, defence, atomic energy or aerospace will not be able to avail of The Automatic Route.In terms of the guidelines issued in February 2000 and subsequent amendments, except in certain circumstances, foreign investment by way of issue of shares/convertible Debentures by Indian companies can be made in India under the Automatic Route without Any approval from the Government of India or the Reserve Bank of India (RBI). In the Circumstances where the Automatic Route is not applicable, the foreign investor or the Indian company seeking foreign investment would require the approval of the Foreign Investment Promotion Board (FIPB).FIPB is a competent body to consider and recommend foreign direct investment (FDI), which do not come under the automatic route. 2. 4 Government approved route- Indian companies may want to issue shares to foreign citizens and companies Incorporated outside India under sectors not allowed under the Automatic route or any other general/special permissions. In such cases, it will be necessary to Apply to the Foreign Investment Promotion Board (FIPB).Foreign Direct Investment in India is allowed on automatic route in almost all sectors except –Proposals that require an industrial license and cases where foreign investment is more than 24% in the equity capital of units manufacturing items reserved for the small scale industries,  For transfer of ownership or control of India n companies  in sectors with caps from resident Indian citizens to non-resident entities, Government approval/FIPB approval would be required in all cases where: The ownership or control of an existing Indian company (currently owned or controlled by resident Indian itizens and/or Indian companies, which are owned or controlled by resident Indian citizens) will be/is being transferred/passed on to a non-resident entity as a consequence of transfer of shares and/or fresh issue of shares to non-resident entities through amalgamation, merger/demerger, acquisition etc, where a foreign investor has an existing joint venture/ technology transfer/ trademark  agreement in the ‘same field', prior to January 12, 2005, the proposal for fresh investment/technology transfer/technology collaboration/trademark agreement in a new joint venture for technology transfer/ technology collaboration/trademark agreement would have to be under the Government approval route through FIPB/ Project Ap proval Board Proposals falling outside notified sect oral policy/caps or under sectors in which FDI is not permitted and whenever any investor chooses to make an application to the Foreign Investment Promotion Board and not to avail of the automatic route. * Industrial Approvals/clearances- For starting a new project, a number of industrial approvals/clearances are required from different authorities such as Pollution Control Board, Chief Inspector of Factories, Electricity Board, Municipal Corporations, etc. * Labour Rules/Regulations- Under the Constitution of India, Labour is a subject in the Concurrent List where both the Central & State Governments are competent to enact legislation.Some of the important Labour Acts, which are applicable for carrying out business in India are – Employees’ Provident Fund and Miscellaneous Provisions Act, 1952; Employees’ State Insurance Act, 1948; Workmen’s Compensation Act, 1923; Maternity Benefit Act, 1961; Factorie s Act, 1948; Minimum Wages Act; Payment of Wages Act, 1936. * Taxation in India- Foreign nationals working in India are generally taxed only on their Indian income. Income received from sources outside India is not taxable unless it is received in India. Company taxation – Foreign companies are subject to a maximum tax of 40% on its net profits. The effective tax rate for domestic companies is 36. 75% while the profits of branches in India of foreign companies are taxed at 40%. Companies incorporated in India even with 100% foreign ownership, are considered domestic companies under the Indian laws. 3.Amendments- in the FDI and Industrial Policies 3. 1 FEMA (Foreign Exchange Management Act)- The Foreign Exchange Management Act (1999) or in short FEMA has been introduced as a replacement for earlier Foreign Exchange Regulation Act (FERA). FEMA was introduced because the FERA didn’t fit in with post-liberalization policies. A significant change that the FEMA brought with it was that it made all offenses regarding foreign exchange civil offenses, as opposed to criminal offenses as dictated by FERA. When a business enterprise imports goods from other countries, exports its products to them or makes investments abroad, it deals in foreign exchange.Foreign exchange means ‘foreign currency' and includes deposits, credits and balances payable in any foreign currency. It was a criminal legislation which meant that its violation would lead to imprisonment and payment of heavy fine. It had many restrictive clauses which deterred foreign investments. FEMA emerged as an investor friendly legislation which is purely a civil legislation in the sense that its violation implies only payment of monetary penalties and fines. 3. 2 Foreign Investment Implementation Authority (FIIA) Government of India has set up Foreign Investment Implementation Authority (FIIA) to facilitate quick translation of Foreign Direct Investment (FDI) approvals into implementation.FIIA is assisted by Fast Track Committee (FTC), which have been established in 30 Ministries/Departments of Government of India for monitoring and resolution of difficulties for sector specific projects. Role of Foreign Investment Implementation Authority (FIIA) To understand and solve the problems of the investors , understand and solve the problems of the approving authorities, refer to the cases that has not been resolved at the level of FIIA to the agencies at the higher levels, and to start consultations with multiple agencies. Changes in FDI policy in Single Brand retail trading:- The policy regarding Single Brand retail trading has been liberalized and now FDI up to 100 percent is permitted under the Government route.Policy for FDI in Commodity Exchanges:- Foreign institutional investors (FIIs) can now invest up to 23 percent in commodity exchanges without seeking prior approval of the government. However, FDI will continue to need the approval of the FIPB DTAA (DOUBLE TAX AVOIDA NCE AGREEMENT) WITH MAURITIUS- According to the tax treaty between India and Mauritius, capital gains arising from the sale of shares are taxable in the country of residence of the shareholder and not in the country of residence of the company whose shares have been sold. Therefore, a company resident in Mauritius selling shares of an Indian company will not pay tax in India. 4. Status of FDI in IndiaVarious studies have projected India among the top 5 favoured destination for FDI. Cumulative FDI equity inflows has been Rs. 5, 54,270 core (1, 27,460 Million US$) for The period 1991-2009. This is attributed to contribution from service sector, computer Software, telecommunication, real estate etc. India’s 83% of cumulative FDI is Contributed by nine countries while remaining 17 per cent by rest of the world. Country-wise, FDI inflows to India are dominated by Mauritius (44 percent), followed by the Singapore (9 per cent), United States (8 percent) and UK (4 percent) Countries like Singapore, USA, and UK etc. invest in India mainly in service, power, telecommunication, fuels, electric equipments, food processing sector.Though India has observed a remarkable rise in the flow of FDI over the last few years, it receives comparatively much lesser FDI than China. Even smaller economies in Asia such as Hong Kong, Mauritius receive much than India in terms of FDI inflows. This is largely due to India’s economic policy of protecting domestic enterprise compared to above mentioned Newly Industrialized Asian Economies. Country-wise, FDI inflows to India are dominated by Mauritius (44 percent), followed By the Singapore (9 per cent), United States (8 percent) and UK (4 percent). the share of Mauritius is the highest due to the double taxation avoidance treaty with Mauritius. (Comparing India and China)Source: UNCTAD, World Investment Report 2009; Net FDI Inflow= Inward FDI flow Minus Outward FDI Flow . FDI stock of India has also registered a consistent grow th over the period of study. Net FDI stock for the period 1990-2000 was 1533 Million US$ which rose to 61523 Million dollars. However, net FDI stock of China is about 4 times than that of India. India’s inward FDI stock to GDP ratio improved from 0. 5 per cent for the 1990-2000 to 9. 9 per cent by the year 2008. Similarly, ratio of outward FDI Stock to GDP for the Corresponding period has registered a consistent rise and was at the level of 5 per cent In the year 2008 Source: UNCTAD, World Investment Report 2009; Net FDI Inflow= Inward FDI flow Minus Outward FDI Flow.There is a positive link between FDI and India’s growth story. India has been observing a consistent growth in net FDI flow. Ratio of FDI Inflow to Gross Capital Formation has improved from 1. 9 per cent during the period 1990-2000 to 9. 6 per cent in the year 2008. . Service sector has been the highest contributor of FDI inflow to India (22%). Followed by computer software and hardware (9%), telecommunica tion (8%), housing And real estate (8%), construction activities and power (7%). Net inward FDI into India remained buoyant during April-June of 2009-10 as Manufacturing sector continued to attract most part of FDI (19. 2 per cent), followed by Real estate activities (15. per cent) and financial services (15. 4 per cent). This trend Reversal (greater FDI in manufacturing sector) could be attributed to relatively better macroeconomic performance of India. During 2008-09, continuing liberalization measures to attract FDI and positive Sentiments of global investors about the growth potential of EMEs, including India. India evolved as one of the most favoured destination for investment in the service Sector due to low cost wages and wide demand-supply gap in financial services Particularly in banking, insurance and telecommunication. Gradually India has become Important centre for back-office processing, call centres, technical support, medicalTranscriptions, knowledge process outsourci ng (KPOs), financial analysis and business processing hub for financial services and insurance claims. There has been a wide concentration of FDI inflows around Mumbai Region (36%) followed by New Delhi Region (19%), Karnataka (6%), Gujarat (6 %), Tamil Nadu (5%) and Andhra Pradesh. It is alarming that these regions receive 77% of FDI equity inflow while rest of India accounts for only 23%. Lack of proper initiative from the various state governments is responsible for such wide disparities in FDI. China is the workshop of the world. Its $1,952 billion in output last year allowed it to overturn the US' 115-year reign as the world's largest manufacturer.China's manufacturing is labour-intensive: it produced almost the same percentage of world manufacturing output as the US (~19%) with about nine times the number of workers. China’s manufacturing success — seeded by foreign investment, superb infrastructure, a rational labour law regime, an infinite supply of migrating c heap farm labour — created the fastest poverty-reduction programmed in recorded history. Indian manufacturing must seize this opportunity. India accounted for only 1. 8% of global manufacturing value added (MVA) last year versus China at 23. 3%. Our per-capita productivity was a disappointing $107 versus China at $842. Budget 2011 plans a new manufacturing policy that aims to raise the share of manufacturing in GDP from 16% today to 25% in 10 years.How China became the world’s largest manufacturing destination:-China invited foreign direct investors to provide the capital and the expertise to achieve export competitiveness in a wide range of sectors, including electronics, apparel, plastic toys, stuffed animals, ceramics, and many other labour intensive sectors. In each sector, the key was to link foreign investor capital and expertise with a large and low-cost Chinese labour force. The foreign investors brought in the product design, specialized machine tools and capi tal goods, key intermediate products, and knowledge of marketing channels. The Chinese assured these foreign investors certain key conditions for profitability, such as low taxes, reliable infrastructure, and physical security, adequate Power, decent logistics for the import and export of goods, and so forth.Creating global manufacturing competitiveness is complex but two bottlenecks for Indian manufacturing are infrastructure and labour laws. Our current labour law regime has huge costs; exploding unorganized employment, lower organized manufacturing, encouraging buying machines rather than hiring people, corruption, blue-collar exploitation and higher organized sector skill intensity. Basically, labour laws have ensured that 100% of net job creation in the last 20 years has been in the low-productivity and sub-scale unorganized sector. Added to the acute infrastructure woes are the rigidities in Indian labour markets which makes it practically impossible to shed excess labour or g et rid of nonperformers.Looking beyond these two constraints, a number of studies and reports have highlighted other weaknesses that hinder India’s development as a major export oriented manufacturing base. Some comparative statistics are given below- Source- Bajpai N and Dasgupta N, â€Å"Multinational Companies and Foreign Direct Investment in China and India†, Centre on Globalization and Sustainable Development (CGSD) Working Paper No. 2 (Sect-oral Distribution of FDI) Maharashtra Region attracts FDI in energy, transportation, services, Telecommunications and electrical equipment. Delhi and NCR attracts FDI inflows in Telecommunications, transportation, electrical equipment (including software) and Services.While Haryana emerged as a preferred destination for electrical equipment, Transportation and food processing, Tamil Nadu has been successful in attracting FDI In automotive related and auto components sector. Andhra Pradesh and Karnataka Emerged as a popular des tination for software, computer hardware and Telecommunication. India’s rural areas such as Orissa has also been successful in Attracting FDI in securing large Greenfields FDI projects in bauxite, mining, aluminium and automotive facilities. 5. Round Tripping of FDI to China – The Chinese official statistical database does not provide disaggregated FDI that would directly project the relative contribution by the Non-Resident Chinese (NRC) population in China.However, based on the fact that a large proportion of NRCs residing in Hong Kong, Singapore, Taiwan and Macao make FDI to mainland China, we will make the assumption that, in broad terms- any FDI originating from these countries will constitute expatriate FDI and mainland Chinese funds routed through local financial agents – round tripping. It is evident that the share of OECD (Organisation for Economic Co-operation and Development) countries and with it the share of MNCs in Chinese FDI inflows has been rais ing over the 1990s while the share of Singapore, Macao, Taiwan and Hong Kong (supposedly the NRC contribution) is falling. NRC contribution, which was nearly 80. percent of the total Chinese inflows in 1992, has gradually decreased over the 1990s, being on an average about 60. 5 percent over the decade. China’s FDI numbers include a substantial amount of round-tripping: A large amount of Chinese black money is recycled through Hong Kong and sent back to the mainland as FDI. Round-tripping in fact accounts for one-half of China’s FDI inflows, which thus reduces the reported level from $40 billion to $20 billion in 2000(see graph below). Even in 2001, more than 47 percent of FDI inflows to China came from these four countries (Hong Kong, Singapore, Taiwan and Macao) where a large proportion of NRC's reside. 6. Directional Comparison of FDI in India and China –China's FDI inflows are somewhat inflated due to ‘round-tripping’ investment through Hong Kon g, which poses as a foreign investment in order to acquire the benefits from preferential tax treatment. The World Bank estimates that about 20–30% of FDI in China was due to the round-tripping investment on the other hand, India's FDI inflows are underestimated because the figure excludes reinvested earnings. While it is very likely that the entire FDI from these economies to China may not be totally from the NRCs, but a very large part of it actually is. Expatriate investment has been a very small portion of aggregate FDI in India, in spite of gradual attempts by the government to simplify the regulations involving investments by the non-resident Indians (NRIs) into the country and hence the expatriateIndians do not form a large segment of the target investors in India, unlike in China. On the whole, it is observed that in India, FDI is flowing into areas where skilled labour is major input sectors are telecom, electrical equipment, including computer software, energy, and the transportation industry. These four sectors accounted for roughly 50 percent of FDI inflows remarkable difference exists in the expanse of the areas of foreign investments in India and China. FDI in China is rather extensive, being diffused over agriculture (farming, forestry, animal husbandry and fishery), mining, and manufacturing and significantly into the tertiary sector.Moreover, social-welfare related sectors like education and healthcare and wholesale and retail trade(till 2012) that have not yet been targeted in India as sectors competent for attracting FDI inflows, but these have contributed to FDI in China. China has, since 1998, stepped up its efforts to encourage foreign investments into technology development and innovation. Several incentives, such as import duty exemption for equipment and technology brought into China by foreign-invested research companies, tax breaks for incomes obtained from transfer of technology, and business tax exemption to foreign enterpri ses transferring advanced technology, are luring foreign investors to China. China most certainly attracted large sums of FDI in the manufacturing sector, a significant part of which could definitely be channelized to India had India not been plagued with inadequacies.India’s product reservation for the small-scale industry, stringent labour laws, inability of the firms to exit, if conditions so demanded (no exit policy), lack of decision-making authority with India’s state governments and hence lack of competition among Indian states to attract FDI (as against China’s provinces) were some of the key factors why India lost large sums of FDI. Fall in FDI in electrical equipment manufacturing in India has been due to the cheap Chinese goods flooding the market. The role of sub-national government as a catalyst to FDI inflows has also been ignored in India while decentralization of FDI seeking and related powers has been given due importance in china. The Chinese g overnment welcomes FDI and does not seek too much documentation for companies setting up ventures in China. Getting licenses is also easy for setting up a unit in china. Export-orientation in FDI in India and China- China has been successful in attracting huge export oriented FDI inflows in recent years.China invited FDI to provide the capital and the expertise to achieve export competitiveness in the manufacturing sector with the key link of providing cheap labour . The foreign investors brought in the product design, specialized machine tools and capital goods, key intermediate products, and knowledge of world marketing channels. The Chinese assured these foreign investors certain key conditions for profitability, such as low taxes, reliable infrastructure, physical security, adequate power, decent logistics for the import and export of goods. India has large scale reservation in the small sector industries such as handicrafts which have large demand in the world market. SEZ's and EPZ'sSEZs, along China’s coastline, were designed to give foreign investors and domestic enterprises favourable conditions such as import intermediate products and capital goods duty free for rapid export promotion and good infrastructure. India also had similar models of EPZ and Export Oriented Units (EOU). EPZs are located at various places including Cochin, Falta (near Calcutta), Kandla, Chennai, Noida, Santacruz (Mumbai), Vishakhapatnam and Surat. A unit could be set up in these zones subject to availability of space. Incentives provided to attract investment in these areas were ‘zero import duty', a ‘special 10-year income tax rebate' and other incentives. Eight special zones failed to achieve the export targets.Decentralization of decision-making authority was also a major reason for SEZ success in China. Another ingredient of infrastructure is the availability of power at competitive rate. Apart from cheap power there is no power failure in China, as in In dia. The EPZ's in India are one -third of the required size. In China all jobs are on contract basis, which stand terminated upon the expiry of the terms, which can be fixed/flexible or for a specific job. In contrast, the labour laws in India are extremely stringent and the Industrial Disputes Act, 1947 does not allow companies with 100 or more employees to retrench labour without seeking prior permission the concerned state government. EPZ's in India have performed poorly due to:-Insufficient logistical links with ports and airport, Poor infrastructure in areas surrounding the zones (e. g. unpaved roads and poor Physical security), Government ambivalence and red-tape regarding inward FDI, Unclear incentive packages governing inward investment, and Lack of interest and authority of state and local governments, and the private sector, Compared with the central government, in the design, set-up, and functioning of the Zones. Unclear ownership of land- A major part of land parcels in India is subject to legal dispute over their ownership. This prevents to acquire land for retail; housing and the courts take an enormous time for clearing such cases.As a result Indian developers have hard time raising collateral for loans against land for which they don’t have a clear ownership. Revising the law on land construction would give a major push to the sluggish construction industry of India. Parts of India are plagued by archaic laws such as ULCRA (Urban Land Ceiling Regulation Act) which created an artificial land scarcity leading to rising land prices further rising the cost of the housing Industry. Following Recommendations to improve FDI flows to India:- Apart from taking steps to improve infrastructural facilities and enhancing labour Market flexibility while the government has lifted sect oral caps for FDI over the last decade.Policies have thus far been ad-hoc and a source of uncertainty. Particular attention should also be paid to the removal of restrict ions on FDI in the Services sectors — including telecoms, banking and insurance, aviation, etc – as this will Help ease transactions costs for both consumers and business. The World Bank (2002) Has in fact proclaimed that â€Å"in virtually every country, the performance of the service Sectors can make the difference between rapid and sluggish growth† One sector that should certainly get this automatic approval is the education sector. Currently there is no FDI in education Allowed. Since it is well known that the education sector in India has reached a plateau.In terms of ideas or development, it is only fair that new ideas and methodologies from other countries are tried out. The SEZ'S and EPZ'S have failed to achieve their targets, for this the government must provide SEZs in strategic locations, close to ports or major industrial locations. Concurrent to this establishment of SEZs in strategic locations, the government should also provide all necessary infra structural facilities to ensure the success of the SEZ’s. The government needs to beyond the current policy of only allowing SEZs in areas that are already owned by companies applying for the SEZ: in effect, a SEZ should be like a huge industrial park rather than having one single company in it.Three, focus should not just be on the absolute amount of gross FDI inflows but also the type. More specifically, while India has experienced an infusion of FDI inflows in recent times, a large portion of the new inflows have been in the form of M&A's. Given that the latter does not necessarily imply new capital infusion into a country, the macroeconomic consequences of the two types of FDI can be quite different. The focus should not just be on the amount of Greenfield FDI inflows but also the positive externalities to be derived from them, including in terms of technological development. The effectiveness of the Foreign Investment Implementation Authority (FIIA) needs to be enhanced. Any investment promotion strategy must be geared towards the following: (a) image-building activities promoting the country and its regions and states as favourable locations for investment; (b) investment-generating activities through direct targeting of firms by promotion of specific sectors and industries, and personal selling and establishing direct contacts with prospective investors. India does have a vibrant manufacturing sector but that rarely comes out internationally because it gets drowned out by the more glamorous software and other service related sectors. This perception is a fundamental one and goes well beyond reasons such as red-tape, corruption, poor infrastructure though they are inter-related to an extent.To get rid of this tag is easier said than done but the government can do more promotion activities to this end, preventing diverting this FDI to China. There is the desperate need to create a deep talent pool. This is inherently dangerous for a country like Ind ia which has a tag of a services country; a sector that needs a deep talent pool to feed off. This lack of talent is reflected in the growth in wages which is one of the highest in the world. India has the highest wage inflation of any Asian economy. The one thing that makes India attractive is the cost arbitrage and if wages increase the way they are increasing, it is very likely that this arbitrage will disappear and along with it, valuable FDI dollars.To this end, it is necessary to continuously monitor the quality of students as well as the quality of teachers in educational institutions. The table below gives the rise in wages in different sectors for year 2012. While many policy barriers have been removed on FDI in India, results have at times been disappointing due to administrative barriers at the state level as well as lack of coordination between the central and state governments. There need to be greater coordination between the centre and states to ensure that the substa ntial foreign interest in investing in India gets translated into actual investment flows to the State. An example of this is the proposed $12 billion investment, India’s single largest FDI investment, by South Korean steel giant, Pasco.Pasco signed an agreement in June 2005 to set up a steel plant in Orissa but as of March 2008, the steel plant is yet to be start construction, let alone any operations. Every kind of problem ranging from political to environmental to allegations of land grabbing has affected this project. The main problem has risen from the allegation that they would make some villagers landless and Pasco cannot have a factory anywhere else because the raw material is in Orissa. This is a problem that the Orissa government could have easily foreseen but many governments in India have a tendency to promise too much and do too little. This clearly has impacted credibility of many state governments.India should continue to work towards developing a deep and liqu id corporate debt market. India is one of the few countries with a major equity market but With a highly illiquid corporate debt market. A well functioning corporate debt market Does one major thing for companies looking to invest in India. It is very likely that when Companies are investing their money in India or in any other country, they are more Likely to use debt rather than their own cash. Therefore, they would go to debt markets In their countries of origin and raise money there. However, this could lead to a considerable exchange rate risk because FDI is usually long-term and there is no good way of forecasting exchange rate movements in the long-run.If there a well functioning corporate debt market in India, it actually makes India that much more attractive. India should consciously work towards attracting greater FDI into R&D as a means of strengthening the country’s technological prowess and competitiveness. Policymakers are looking at FDI as the primary source of funds. It is important to Keep in mind that FDI on its own is not a panacea for rapid growth and development. What India needs is to put in place a comprehensive development strategy, which Includes being open to trade and FDI. This ought to go a long way to fulfilling the Ultimate goal of permanently eradicating poverty over the medium and longer-terms.India should remove the product reservation in small scale industries, bring in flexible labour laws, this will generate competitiveness in this sector which is critical for a growing economy. India has failed to evolve as inward FDI manufacturing destination. Manufacturing investment has potentiality to develop ancillary industries also. There is a wide spread under employment in agriculture. Manufacturing sector has greater scope of low end, labour intensive manufacturing jobs for unskilled population when compared with service sector. The issues of geographical disparities of FDI in India need to address on priority. India is a q uasi-federal country consisting of States and Union Territories.States are also partners in the economic reforms, and should offer several tax incentives etc for attraction. Data on FDI reveals that India has increase largely due to Merger and Acquisitions (M&A's) rather than large Greenfield projects. Business friendly environment must be created on priority to attract large Greenfields projects. Regulations should be simplified so that realization ratio is improved (Percentage of FDI approvals to actual flows). To maximize the benefits of FDI persistently India should also focus on developing human capital and technology. M&A's not necessarily imply infusion of new capital into a country if it is through reinvested earnings and intra-company loans.A Greenfield Investment is the investment in a manufacturing, office, or other physical company-related structure or group of structures in an area where no previous facilities exist. Governments should see that losing corporate tax reve nue is a small price to pay if jobs are created and knowledge and technology is gained to boost the country's human capital. There is abundance opportunity in Greenfield Projects. But the issue of land acquisition and steps taken to protect local interests by the various state governments are not encouraging. MOU ArecelorMittal controversy is one of the best examples of such disputes Due to poor quality primary education and higher there is still an acute shortage of talent. This factor has negative repercussion on domestic and foreign business. FDI in Education Sector is less than 1%.Given the status of primary and higher education in the country, FDI in this sector must be encouraged. The SEZ’s and EPZ’s of India have failed to achieve their export targets due to unclear rules and regulations by the government, overcrowding of units in these zones and poor infrastructure as discussed previously in the report. It is found that there are Lower indirect taxes in china, lower import duties on raw materials since the Government often sees that losing corporate tax revenue is a small price to pay if jobs are created and knowledge and technology is gained to boost the country's human capital, higher labour productivity encourage higher FDI’s in china.The Indian Government should also implement such regulations. In China, Foreign investment in research and development (R&D) and foreign enterprises transferring advanced technology to china are exempt from paying import duty; such policies aren’t seen in India. In order to improve technological competitiveness of India, FDI into R&D should be promoted; FDI can be instrumental in developing rural economy. There is abundance opportunity in Greenfield Projects. But the issue of land acquisition and steps taken to protect local interests by the various state governments are not encouraging. 8. FDI in Retail(how it is good for the country):-Small shops, street vendors and malls can all co-exist (as they are doing now): They all serve different needs, and different income segments. The FDI approval does state that â€Å"30 per cent of the products must be procured from small scale industries which have a total investment in plant and machinery not exceeding $1 million. FDI in retail will expand consumer base. Some categories currently have no big players: There are some categories of stores that are just not present in India. The suppliers of e. g. -air conditioning units have increased but the food sector supplies remain traditionally the same. Having a Wal-Mart will cater to the increasing consumer base. FDI in India Retail should be welcomed as this will bring a lot of money in India.Foreign Investment will help the government to build new infrastructure and improve rural infrastructure. Farmers will be the biggest beneficiaries from this move, as they will be able to improve their productivity and get high prices by selling their crops directly in the market to the lar ge organized players. Government will also gain by FDI through transparent and accountable monitoring of goods and supply change management systems. Products will be available to the consumers at reduced price since products will be purchased directly from the farmers and sold to consumers. This will provide lots of job opportunities to unemployed people in India.It will provide more options to the farmers with less wastage of agriculture product. FDI in retail will increase the competition for Indian players pushing them to improve their products and services. The final beneficiary of this competition will be the consumers. We have enormous wastage in foods and vegetables because small stores and vegetable vendors cannot afford refrigerated trucks, or any refrigeration. The stores lose money, and so does the consumer (because a lot of the fruits/ vegetables spoil too quickly after purchase. Hence the State governments should go with this agenda instead of opposing it and see the bi gger picture. 9. McKinsey report on economic performance of India-McKinsey Global Institute prepared a report on how the global economy works with a special focus on India which will be the most populated but remains one of the poorest economies. Special focus was given on the economic performance and growth potential of the country comparing its growth with its neighbour China. Following findings were made- A decade ago India and China had the same GDP per capital, but now India’s GDP is only half that of china. Some of the factors preventing India's GDP to grow in comparison to China are Low Productivity-This arises due to regulations concerning markets and products, land market ownership distortions and government owned businesses since they protect most industries from competition.Inequitable regulations-such regulations restrict competition thus reducing efficiency as seen in the telecommunication industries there private players have to pay a heavy licensing fees compar ed to government owned incumbents who do not do so. Uneven enforcement- the small scale industries steal power frequently compared to bigger more visible counterparts who can’t do so. Reservation of products for small scale industries-Around 500 products are reserved for small scale industries (as of 2001), such reservations restricts these industries to achieve production efficiency. Licensing or Quasi Licensing-Several sectors such as dairy require a license from Government before starting production. These licensing authorities prevent private entrants into entering competition.Government ownership of companies promote inefficiency and waste-their labour productivity levels are far below their private players- in telecommunications and electricity government control both the regulators and state electricity boards(SEB's) which are highly inefficient and lose around 30 % to theft compared to 10% of power lost by private players to theft. Poor infrastructure and less red tap e in port management could greatly reduce customs clearance time. Unclear Ownership- A large proportion of land in India is subject to legal disputes over their ownership and the courts are very slow in resolving disputes. This prevents buying land for retail and housing. Counterproductive taxation-Low property taxes, ineffective tax collection, subsidised user charges for water and power leave the local governments unable to invest in infrastructure e. g. – in Delhi water is supplied at 10% of its true cost. MEASURES TO IMPROVE PRODUCTIVITY-The following measures were suggested – removing reservations on small scale industries, establishing effective proactive and independent regulators, rationalising taxes and custom duties, removing restrictions on foreign investment and widespread privatisation which will boost competition, further improving the quality of products, and at times, has reduced the cost also. Removing the barriers to higher productivity, privatization and a more efficient taxation could save the government from what it loses now by providing subsidies to the state owned enterprises, helping it to reduce its burgeoning budget deficit. Increased Productivity and opening more sectors to FDI would also create new jobs, which is crucial for the second most populous country of the world. 10. ConclusionIndia and China are exemplars of the changes brought on by globalization. They are two of the fastest growing economies in the world and possess two of the largest domestic markets by number of consumers. FDI has been a major contributor to both nations’ growth, bringing in more than just investment capital. FDI has fostered the introduction of technology, human know-how, and helped to link nations internationally. India has complex FDI regimes that, while allowing for large nominal volumes of FDI inflows, has major flaws. India still protects large economic sectors from investment, is slow to approve foreign acquisitions of domes tic firms (if at all), and is characterized by excessive bureaucracy.The analyses in the current study suggest that: China’s potentially huge domestic market is the major determinant of its inward FDI . Comparing to India, China’s better performance in attracting FDI fromwas mainly due to its larger domestic market and higher international trade ties along with better infrastructure and less of red tapism. . . 10. References 1) Bajpai N and Dasgupta N,†Multinational Companies and Foreign Direct Investment in China and India†, Centre on Globalization and Sustainable Development (CGSD) Working Paper No. 2 2) Wei W,†China and India: Any difference in their FDI performances? , Journal of Asian Economics, Vol-16 719–736(2005) ) Bensidoun I , Lemoine F, â€Å"The integration of China and India into the world economy: a comparison†, The European Journal of Comparative Economics,Vol- . 6, n. 1, pp. 131-155 4)http://www. investinginindia. in/ â⠂¬â€œ FDI Website. 5)M. Shamim Ansari, M. Ranga,†India's Foreign Direct Investment : Current Status,Issues,and Policy Recommendations†,UTMS Journal of Economics, Vol. 1, No. 2, pp. 1-16, 2010 6)Bajpai, N. and Dasgupta, N. , â€Å"What Constitutes Foreign Direct Investment: Comparison of India and China†, Columbia Earth Institute, Columbia University, Working Paper, April. 7)Agosin, M. and R. Mayer (2000). â€Å"Foreign investment in Developing Countries: Does it Crowd in Domestic Investment? † Discussion Paper No. 146, UNCTAD, Geneva

M1a3 livoria sandwiches, inc. Essay

This report examines strategic alternatives that would help owners of Livoria Sandwiches Inc. gain competitive advantage in a growing market, achieve its profitability target and maintain its strong reputation of having a high quality and unique product in the industry. This report provides an analysis of the company’s current situation, identify strategic issues and analyze strategic alternatives. These also provide recommendations as to courses of actions the brothers should adopt to reach their goal, and proposed implementation plan. CURRENT SITUATION Stakeholders Preferences: * Go franchising (Paul) * Enhance vegetarian menu (Sam) * Preserve quality and control (Sam) * Realize $1.1M net income by 2015 (both Paul and Sam) *Avoid using line of credit (both Paul and Sam) Constraints: * Cash * One supplier of all store requirements/ingredients * Bank requires $20,000 minimum cash balance at any given time * Number of hours work * Working space Environmental Scan : SWOT Analysis Exhibit 1 Current Financial Assessment – Lowest profit of .29% compared to industry wide due to $500,000 contingent liability booked in 2012. Removing this extraordinary item would result to 24% operating income which is higher than Dawkins industry benchmark – 52.93% highest Contribution margin than industry average – High growth % versus set by the industry – Available line of credit -Impressive performance among competitors whether franchising or non-franchising -Debt free Key Success Factors: * High-quality traditional custom-made sandwiches developed through generations *Loyal client base and recognition * Effective obsolescence plan * Zero Debt Key Risks: Losing market share and competitive advantage Limited experience how to compete and to grow the business Just one supplier to sustain store operation/production MAJOR ISSUES 1. Increase profitability 2. Growing market STRATEGIC ALTERNATIVES 1. Expanding without franchising 2. Open Franchise Agreement ANALYSIS OF STRATEGIC ALTERNATIVES I. EXPANDING WITHOUT FRANCHISING PROS CONS Develop product lines by introducing vegetable sandwiches (Appendix 4) shows an increase in cash inflow from 155% in 2013 to 319% in 2015 May cannibalized existing/old product lines which the company is being known for Attracts customers with other preferences and may compete broadly in the industry by branching out in new locations Requires additional training cost, space, business strategy and building customers recognition, hire professional help which may cause additional fund or used available line of credit Established and maintained more suppliers that would provide more options and huge discounts in large orders May affect existing quality standard of the custom-made sandwiches Discover more hidden opportunities from existing operations, by adding value to the product, and improve training the staff Financial Assessment if expansion without franchising: a.Total CM% increase from 2012 52.93% to 60.50% in 2015 (Appendix 3) b. Total profit show a positive increase from 18% in 2013 to 31% in 2015, far reaching the brothers’ preference of $1.1 M in 2015, Appendix 3 showed $1.4 M net profit c.Return on investment assuming initial cash balance net of the minimal requirement ($20,000) was use to introduce new line of menus showed a remarkable result of 21% ROI in 2013 to 249% return in 2015, Appendix 3 d.Cash budget projections with new line of products showed increase cash inflows from $556K (2013),$869K (2014) and tremendous increase of $2.3 M by the end of 2015 – Appendix 2 e. Appendix 4 showing Statement of Cash Flow present a positive economic growth, from $423K cash inflow generated in 2013 155% increase in cash to $1.9M in 2015. Calculating IRR for the next 3 years showed 478% return. II. OPEN FOR FRANCHISE AGREEMENT PROS CONS 1. opportunity to grow faster than would be the case of training employees create internal marketing strategy, sales and distribution 1. significant disadvantage is loss of control, though substantial restrictions may apply because of franchise agreement, franchise is still considered a 3 rd party who would seek to maximize return of investment at your expense 2. use of franchising fee/capital will expedite growth/network of the company than finding one for the business 2. part of your profit is use to utilized to promote your franchise/s 3. franchising motivates franchisee to excel and go beyond to succeed due to incentive scheme and growth is dependent upon the success of your business 3. substantial product knowledge and expertise has to be shared concerning your business although restrictions may apply but control over it is difficult to enforce and monitor 4. will increase purchasing power as franchising network grows and that eventually reduced cost to operate, gain profitability from small units 4. skills required to monitor, manage and support franchise/s are far different than handling your own employees 5. may thrive from downturn like recession compared to non-franchise business 5. standard sets in doing franchise may alter your consumer taste. RECOMMENDATION Both alternatives if done in a well thought out plan may manage company’s growth strategically. Since it can be done drastically and uncontrolled way major casualties of which could be customer dissatisfaction and will adversely affect cash flow. IMPLEMENTATION PLAN So it is necessary therefore to manage the growth process so we can obtain benefits in a medium and long term. The following may be executed: 1.Plan your expansion, not just by reacting to the circumstances but creating a solid plan, Ansoff Matrix (Exh 2) can be a helpful tool in creating this roadmap. 2.Don’t over expand, which is one of the biggest danger in growth phase. A 3 to 5 year projections plan capacity is doable and allow additional 10% capacity over and above that for challenging times. 3.Get professional financial advice because expansion entails monetary implications, with expert help we can reduce the risk and address issues right away. 4.Shop around, look for the target-location where marketing the product may established the same acceptance by the customers. 5.Develop a project management for the expansion in a formal way to uncover other possibilities 6. Keep customers informed about expansion plan and what to expect, when disruption may take up and how will the company will deal with it. 7.Announce the completion of the expansion. Inform target customers about the increase capacity, new menu and additional services to be offered. A good marketing device will help the company introduce this expansion in a high note.

Gender in West Africa

In the West African community, the concept of power among women lies within the vibrant differences between the roles of each gender. Women were and still are the foundation of the African community as they exercise the power to protect life and educate children. Despite this prominent position, they are not in any way seen as equal to men.This conventional perception changed temporarily, or perhaps was slightly regarded differently, when in 19th Century, Behanzin, one of the most renowned kings of Dahomey, a country now known as Benin, used his army of women to fight the French army because of the invasion of the French settlers in the Dahomey territory, which brought resistance. These women, called â€Å"Amazons,† fought with exceptional courage and were often considered invincible by their opponents.With the use of Amazons in the kingdom of Benin, a significant alteration in the gender roles occurred in the African community. This alteration, giving female soldier’s roles almost exclusively reserved for males, reflects what Butler and Kimmel discuss in their books—gender as social construct and performativity. It could be conceded that gender lines were crossed with this new position of women, but a closer look at the situation will prove the opposite to be.At first glance the physical and mental transformations of Amazons into men would make it seem that the women were able to achieve power that had been formerly reserved for men; however, on closer inspection, there is significant evidence that many features of the traditional gender norms were unchanged in the long-run, despite appearances to the contrary.

Sony..read the requirement carefully Essay Example | Topics and Well Written Essays - 1750 words

Sony..read the requirement carefully - Essay Example It is also among the top a hundred effectively managed companies across the business world (Koontz & Weihrich 2006, p. 104). This was because of its renowned heritage of creativeness and innovativeness. On the other hand, marketing concept is a marketing philosophy in which a company’s goals revolve around the identification and achieving the needs and wants of the customers (Singh 2004, p. 11). Many company’s have adopted this concept over the recent years and Sony company is one of the firms that have made use of this philosophy in order to achieve its consumer oriented goals. With this, this essay will delve into the relevance of the marketing concept to Sony Corporation by expounding on the ways in which the company has applied it successfully to encompass its global operations. The history of marketing concept In prior years, companies used the sales concept and the production concept to foster their operations, but they proved ineffective in achieving the consumer satisfaction. In essence, the production concept was in existence in the 1920s and its rise attributed to the industrial revolution witnessed across the globe (Faarup 2010, p. 23). The concept was effective because most of the goods produced at this time met the basic needs hence creating a higher demand for the same. At this time, the sale of the manufactured products was easy as sales teams were able to execute sales transactions through a price that was subject to the cost of production. The sales concept followed the production concept in the 1930s because of increased competition that was able to meet the unfulfilled demands. The idea behind this concept was that companies had to influence consumers to buy their products through promotional strategies because of the competition experienced in the market. The sales concept failed because its focus was mainly on the sale of the products without factoring in whether the consumers actually needed the product that they were selling . The implication of this was that this did not attain customer satisfaction as marketing came after the development and production of the products for sale. However, many equate marketing to sales, but these two entities are quite different in terms of approach and influencing customer satisfaction. Marketing concept gained momentum after the Second World War because of the increased consumer spending because people could now afford to buy selected products (Faarup 2010, p. 24). With this, companies began to focus more on the needs of the consumers by developing products after ascertaining what the market wanted. The advantage that this presented was that companies could now achieve profits by satisfying the consumer needs for their overall benefit. In essence, marketing concept relies on research of the market to determine the market size, needs, and the segments that exist within the market. In order to satisfy the needs of the consumers, the marketing team decides on the ways of controlling the parameters of the marketing mix. Sony Corporation and the marketing mix Marketing mix is a business-marketing tool, which encompasses the four Ps in the influencing of consumers towards accessing a company’s products and services for the attainment of its goals and objectives (Lamb et al 2008, p. 148). The four P’s are price, place, promotion, and product that when mixed reflect the nature of different

Leadership Style of Larry Page of Google Research Paper

Leadership Style of Larry Page of Google - Research Paper Example Even before discussing the leadership style of Larry Page with respect to the organizational culture of Google, it is important to understand different types of leaderships. Usually leadership styles are analyzed on the basis of two parameters, namely goal orientation and behavioral orientation. Based on these two parameters, there are four types of leadership styles such as autocratic, participative, country club and impoverished leadership (Buelens, Sinding, Waldstrom, Krietner, & Kinicki, 2011). In case of autocratic leadership, there is a high amount of value for goal but a low level of value for the behavior of people. Such leaders are goal oriented, but there is very little care for employee satisfaction. In case of impoverished leadership, there is low goal and behavior orientation. Such leaders show a very low level of commitment towards the employees and the organizational objective. In case of country club leadership, there is low goal orientation but a high level of behavi or orientation. Here the leaders show a high level of care towards the employees and ask the employees to maintain discipline and encourage them to accomplish goals rather than actively participating in the accomplishment of goals. The last but not the least, there also exists participative or team leadership. In case of team leadership, the leaders show a high level of care for the employees. But the leaders also expect full commitment on the part of the management and team towards the organizational goal achievement.... In case of country club leadership, there is low goal orientation but a high level of behavior orientation. Here the leaders show a high level of care towards the employees and ask the employees to maintain discipline and encourage them to accomplish goals rather than actively participating in the accomplishment of goals. The last but not the least, there also exists participative or team leadership. In case of team leadership, the leaders show a high level of care for the employees. But the leaders also expect full commitment on the part of the management and team towards the organizational goal achievement. Also, the leaders actively participate in the goal accomplishment activities and believe in leading by example (Buchanan & Huczynski, 2010). Based on the above discussion, it can be easily understood that the leadership style followed by Google and Page is team or participative leadership. Google has a relatively informal organizational structure and it encourages the employees and managers to take their own initiatives. In such a way the leadership team of Google including Page encourages team participation and a self-driven attitude where the employees can take major decisions without consulting the seniors. Such leadership style coupled with relatively informal organizational culture has probably helped Google to reach the pinnacle of success. However, it is to be added here that as an organizational objective, Google shows respect and care for the employees and their personal lives. Apart from healthy payouts, Google also provides various top class facilities and monetary and non-monetary incentives to the employees. In this way Page and the management team are able to build an organizational culture

Field Project Research Paper Essay Example | Topics and Well Written Essays - 3000 words

Field Project Research Paper - Essay Example In my personal audit, the following relevant information were collected and gathered: (1) identifying and examining if my identity is safe; (2) the reasons why I need to protect myself from identity theft; and (3) how I could protect myself using very basis guidelines against potentially exposing myself for incidents of identity theft ( (Identity Theft Protection (IDPST), 2012). During the course of the personal security audit, as I was made aware that through answering and going through the questions, the following areas were the identified strengths: (1) logging off and locking my computer every night; (2) responsible use of access information by not sharing it to others; and (3) being extra careful on transmitting personal information through email. However, one noted that there was an eminent weakness in the use of passwords. In one instance, I discovered through friends that there were sent some messages through email apparently being sent from my email address. In this regard, there was potential risk in my password being compromised. As needed, I immediately changed my password and the incident did not happen again. Through browsing more information on doing a personal security audit, I learned that by believing that I would not become a victim of identity theft, I was actually exposing myself to the risks of being unprotected and exposed to security risks. In the LifeLock official website, an organization that aims to provide proactive identity theft protection to members who opt to register, it was disclosed that through do-it-yourself personal security audits using free credit bureau reports (AnnualCreditReport, 2012), I would only receive the minimum amount of information for personal security audit. Credit monitoring done by financial institutions generates credit alerts, address monitoring and information from the credit bureau reports. The LifeLock Identity Theft Protection boasts of covering proactive protection, advanced internet monitoring, cre dit alerts, non-credit alerts, address monitoring, lost wallet protection and credit bureau reports (LifeLock, 2012) for prices such as $25.00 / month or $275.00 / year for a LifeLock Ultimate package or a minimum of $10.00 / month or $110.00 / year for a LifeLock package (LifeLock, 2012). The safety tips provided by the IDPST site are likewise helpful in making me more aware of areas to focus on, such as the need to dispose of mail or correspondences that has my personal address and information; never carrying the SSS card; never using the SSS card as an identification number; being careful of credit card receipts; being careful of using debit cards when shopping online; and keeping personal information within my area of residence and not to be carried along. By doing so, the personal security audit enhanced my awareness on areas to be most careful of and to follow the simple guidelines that would assist in protecting myself from identity theft. In sum, the personal security audit made me realize that my personal practices in terms of identity protection (never carrying my SSS card in my wallet; locking up personal ids and information in a safe box at home); credit cards (using a virtually difficult signature to replicate and indicating that a photo ID is required; having photocopies of the credit cards safely at home; checking and monitoring all credit card transactions) and improving my password all ensure that I would be duly protected from identity the

Steve Wozniak Essay Example | Topics and Well Written Essays - 1000 words

Steve Wozniak - Essay Example Wozniak remains unknown to many including some of the most loyal consumers of Apple products. Indeed, education goes hand in hand with technological innovations and advancing. This essay, thus, purposes to illuminate the impetus behind Wozniak’s innovation and relate it to educational attainments. Jobs started Apple Co. with Steve Wozniak in 1976. Wozniak provided his technical ability while Jobs brought his mesmerizing energy on the table to develop a powerful team. Wozniak showcased his first home-made Apple I computer at Homebrew Computer Club in Silicon Valley in 1976. Apple’s popularity took a sudden twist and rose exponentially following Jobs employment at the Byte Shop. Wozniak soon followed suit and released a computer that made Apple as a company overly popular. The talented engineer built Apple II single-handedly ensuring that every hardware and software component had its place. What is more, Wozniak did this while still delivering at his day job with his coll eague, Jobs, at Hewlett-Packard. Apple II went public in 1977 during a computer fair held in the West Coast. In the years that followed, Apple became a publicly listed company in the biggest IPO in 1956. Apple II redefined personal computers and introduced myriad ordinary people to extraordinary personal computers. The reason behind this success was the amazing design. An interview with Wozniak reveals the miraculous aspect of the engineer’s character (Ghosh 1). The teachers saw my smartness and encouraged me to read widely.  

Alternative Energy and the Alberta Economy Assignment

Alternative Energy and the Alberta Economy - Assignment Example Many of these alternative sources of energy do not have the polluting effects as they do not produce any armful gases or waste in to the atmosphere. This is the fundamental reason why they are considered to be green sources of energy (All-recycling-facts.com, 2014). Cost effective: The plants utilized in the production of these sources of energy commonly require less management as compared to the plants that burn fossil fuels (Brown Paper Bag, 2014). This is essential in reducing the operational costs of producing and supplying energy to the region, a factor that makes them more cost effective than the fossil fuels. Reducing dependency on fossil fuels: As the sources of fossil fuels continue to diminish, there is an increased need to reduce the dependency on them as the main source of energy. The application of alternative energy sources presents an opportunity to reduce this dependency (All-recycling-facts.com, 2014). Reliability: Many of the alternative sources of energy depend on factors that cannot be controlled by humans, and that are natural, for example, solar depends on the sun and on wind on wind, while hydro power depends on rain to fill dams (Brown Paper Bag, 2014). This makes it impossible to predict the sources’ dependency in supplying a constant energy should these factors become unavailable or reduced. This makes them inconsistent and unpredictable. Easy production: The setting of fossil fuel plants remains relatively easy and the element of technological limitations has little effects (Scheid, 2014). This enables these energy sources to empower economic development because of the ease in setting up energy plants. Generation of large quantities: The production capacity for energy plants using fossil fuels commonly has a large output. The alternative sources of energy require stepping up to reach some desired

Analysis of Multinational Computer Technology Corporation Microsoft Essay

Analysis of Multinational Computer Technology Corporation Microsoft - Essay Example Microsoft has a very friendly and supporting approach in the routine ways that staff at the company behave towards each other, and towards those outside the company that can make up the ways people do things. The control systems and measurements are constantly under the management review to monitor the efficiency of the staff and managers' decisions. The rituals of Microsoft's life are special events, corporate gatherings, which the company emphasises what is particularly important and reinforce the way things are done. On-going meetings and communication at every level of the company's hierarchy represent a strong internal environment (Microsoft Corporation Annual Report). Interpersonal communication within Microsoft is supported by technologies that connect people from different locations of the world. Facial communication stands for always friendly and expressive attitudes of people working along with each other. The issue of space is observed to be of the same level as in a typic al organization: people keep the distance with each other and sustain professional relationships. Normal distance when negotiating or greeting within Microsoft is around one meter. Microsoft's relationship model combines process maturity with a flexible, fast-paced small company culture that makes it easy to work with. The delight is enhanced by a company’s ability to provide ramped-up value and responsibility as the relationship progresses. Microsoft’s people are inspired to be open, fair and uncompromising in their efforts to ensure external as well as internal customer satisfaction. The company pays special attention to Integrity because of the trust that its clients place upon it. Ethics, values, reputation are vital to Microsoft’s philosophy. Its objective is to be globally respected as a process management company that is truly viewed as a strategic extension of our clients' capacity.

Reading Visual Culture Essay Example for Free

Reading Visual Culture Essay When reading visual culture one can easily be led to interpret from images . Visual representations have many different meanings, the way that some interpreted Visual culture and visual representations can in a way influence, confuse or inform others of their meanings. Visual culture is found almost anywhere in the world, no one really knows when it dates back to as there is so much visual culture in history. There are many examples of visual culture in different times, churches use to use visual culture in their stained glass windows. These windows use to be quite delicate pieces of art and were once considered highly religious, this was because of what was placed inside the windows and where they were most likely to be found was in churches. This was a ‘visual’ as it was able to be seen, but in many ways what was seen may not be real. For instance many of these church windows had angles on them and this made them in a way a fantasy or non-realistic character to some. The ‘culture’ of these windows was the people who viewed these on a religious basis, in other words the ones who shared the same values about the church that the windows were found in. Although there could be some confusion when discussing visible things and visual culture. Visible things are something like a chair, whereas visual culture would be a picture of the chair. The confusion normally lies in the word visible and visual, visualising something can be done when you see a poster and all the different pictures and writing that make up that poster. The format of a visual and how it is represented can impact others in different ways. If you see a sign that is red and says stop, your brain tells you that you need to stop only because this is what it has learnt to do in some cultures. Although in another culture where the word stop is just a heap of wiggly lines and means nothing they may see the red as danger and be cautious about their actions. Another example is when you read hieroglyphics, all most that do not understand them see are images of birds and leaves, whereas the people who know the writing see them as letters and words, it is how things are represented in the mind of others or one’s self. One of the basic units in visual culture can be signs, they can be icons and symbols, and are comprised of different codes. One thing can mean another and then could lead to a serious of different events. Signs that are a well-known icon are something like Coca-Cola. Coca-Cola is a worldwide known product, it is iconic to those who see it. There are many different ways people think of Coke, one of which is the writing on the bottle and the red label that coincides with the label on the bottle. Signs are comprised of different codes, in saying this they are all in their own way a code. In the war a code was considers a bunch or mumbled up words that made no sense, it only made sense to those who understood them. This is much like signs, only those who understand the signs can read them. Referring back to the stop sign as they are symbolic codes, whereas posters are iconic codes, the reasoning for this is because one symbolises an action whilst the other is an iconic image that is there to be seen and viewed so it may draw those who view it in. Although symbolic signs and iconic signs may seem very different they can sometimes be the same.

Essay Writing In Malaysian Schools

Essay Writing In Malaysian Schools Essay writing is a must for Malaysian secondary schools students. There are few types of essays that the students need to master. Guided writing, summary writing and continuous writing are the three main types of essay that are tested in examination. These three different types of writing test students ability to understand and use correct grammar, to apply language skills for interpersonal purposes, to apply language skills for informational purposes, and to apply language skills for aesthetic purposes (Malaysian Examinations Syndicate, 2004). Students have to excel in these three types of writing to be able to apply it in real life situation. Students are assessed on their writing skills in school tests as well as in the national standardized test. Different methods of assessment are used in evaluating students essays. At different levels and tests, there will be at least a minor difference in the method of assessing. In Malaysia secondary school, teachers are not given any specific guides to assess students written works. They assess according to their own methods and experiences. Many methods can be used for assessing students essays. Every method has its own specific guidance and teachers can use them based on their needs and students performance. For example, holistic scoring method is used to assess students essays in a generalized way that is to look at their works as a whole piece without analyzing it in details. Any method is analytic scoring method where teachers look at students performance in details. Both methods can be applied by teachers in classroom- based assessment. In this study, only two methods of essay scoring will be discussed which are mentioned above. Holistic and analytic scoring methods are very different and unique in their own way. Therefore, it is important that teachers know how to use both of them in assessing students essays. The subjects that will be chosen for this study are English teachers in secondary schools in Malaysia. They will be investigated on the ways they use to assess their students essay. A few students from their class will also be chosen to give feedbacks about their teachers assessment. 1.2 Statement of Problem Students essays are marked without a standard scale in Malaysian secondary schools. Teachers score their students based on what they think is good for them. They use mostly holistic scoring method which might not be fair to students (Bloom, Daiker White). The ministry of education might be responsible for what had happened. Teachers mark students essays according to what the ministry suggests. Holistic scoring method has long been implemented in schools. Is it the best method for teachers and students? Some problems have occurred with this method because it is not specific enough. It might also create biasness in the case where students are close to their teachers. This method views the essay as a whole without further analysis on each component. While analytic scoring method views the essay in a more specific way, it provides details for students to be able to know what is lacking in their essays. Analytic scoring method uses a rubric as a standard scale to mark essays. Analytic scoring method is regarded as requiring more work and is expensive while holistic scoring method is considered cheaper and more efficient. Holistic scoring method provides less information to students than analytic soring method. Each of the methods has their own advantages but there should be one method that is more suitable for essay scoring. 1.3 Purpose of the Study This study is aimed at investigating the use of holistic scoring method and analytic rubrics in essay scoring among teachers of Malaysian secondary school. This study is also aimed at discovering the relationship between the two methods. Another goal of this study is to find out how analytic scoring method can be applied in Malaysian secondary schools. 1.4 Significance of the Study Methods of essay scoring have been discussed by many experts all around the globe. It is important in a sense that it reflects students ability in writing essay. The wrong method used to mark their essays will cause their performance to drop. How students write essays, sometimes depend on how the teachers mark their essay. There is a vital connection between the two. Basically, Malaysian secondary schools teachers mark students essay according to what they believe is correct and suitable for their students and the method they use can be considered as holistic scoring method. It is very important that they know a method in specific so that they can mark students essay in details. With this study, it is hope that teachers will realized that analytic scoring method is a more suitable method to be used in essay scoring as it will enhance students writing skills precisely and increase the quality of their essays. 1.5 Research Questions The research questions for this study are as follows: How is holistic scoring method used in marking students essays? How are analytic scoring rubrics used in marking students essays? Why is the holistic scoring method mostly used in school? Why is the analytic scoring rubric rarely used for marking essays in school? How far is it possible to integrate analytic scoring rubric in the curriculum of Malaysian secondary school? CHAPTER 2 LITERATURE REVIEW Introduction According to Normah Othman (2006), there is no specific scoring strategy implemented specially for a classroom-based assessment of direct writing in Malaysian secondary schools. As it is now, ESL teachers currently use a scoring method adopted from the Malaysian Examinations Syndicate. Therefore, teachers can choose to use analytic or holistic scoring. But most of the teachers use holistic scoring in Malaysian Secondary context. Below are the researches done at different countries on analytic and holistic scoring method. According to Alharby (2006), studies addressing issues related to performance assessment seem to be taking two relatively different directions. One if it is to search for the best scoring method that maximizes reliability and validity of assessment. This is usually accomplished by comparing two of the most popular scoring methods used with performance assessment, the holistic scoring method vs. the analytic scoring method. According to him again, the holistic scoring method is usually used with large scale assessment because it is less time consuming than the analytic method; the latter often producing a very large number of responses that need to be evaluated in a short period of time. The analytic scoring method, on the other hand, is usually used with classroom assessments because it provides more detailed feedback on students learning progress for teachers, students, and parents than does the holistic scoring method. In this research paper, the two essay scoring methods will be f ocused on in Malaysian secondary school context. Moon and Callahan (2001) reported that performance assessments have become more popular within classroom assessments for the last two decades. Methods used in performance assessment are analytic and holistic scoring methods. This two types of scoring methods have been concerned by many researches regarding issues such as its reliability (Parkers, Zimmaro, Zappe, Suen, 1998), validity (Kane, Crooks Cohen, 1999), cost (Picus, 1994), and practicality (Baker Aschbacher, 1992). In this research paper, all the mentioned issues will only be dealt as general factors that affect teachers of English in Malaysian secondary context in choosing essay scoring method. Waltman, Kahn Koency (1998) found that the way raters score individual responses affect reliability as well as the validity of an assessment. The two most common ways to score individual responses such as essays written by students are the holistic scoring method and the analytic scoring method. According to Clauser (2000), analytic scoring method is recommended for simple tasks such as tasks to evaluate students ability in spelling and grammar usage. On the other hand, Clauser recommends the holistic scoring method when the tasks are more complicated such as evaluating the adequacy of a haiku. According to Charney (1984), the holistic scoring method tends to be favored by large scale assessment with numerous examinees because it is less time consuming. In contrast, Vacc (1989) claimed that the analytic scoring method tends to be favored by classroom assessment because of the detailed feedback it offers to teachers, students, and their parents in terms of how students performed on t he assessment. Holistic Scoring Method The holistic scoring method was first introduced in 1960s and was known as the general impression scoring method (Hunter, 1996). Similarly, Ojeda (2004) stated that the holistic scoring approach is an approach where graders read to evaluate an essay as a whole-without focusing on or overemphasizing any one particular part or aspect. It started to become popular in the middle of the 70s (Boring, 2002). Huot (1990) pointed out that the holistic scoring method is a technique in which raters are asked to evaluate individual responses as a whole by their first impression without going to specific possible subdomains of the trait being tested. Klein et al. (1998, p.122) stated that this approach [holistic scoring method] is usually most appropriate when the whole is greater than the sum of the parts, that is when scores need to be sensitive to general features of answer quality, such as organization, style, and persuasiveness. In recent year, the holistic scoring method has become even mor e popular, especially with large scale assessments. In Malaysian secondary schools, this method is widely used. Besides that, many researchers have also tried to define holistic scoring approach. White (1984, 1985) defined holistic scoring as a global approach to texts, reflecting the idea that a written text is a single entity. White (1984, 1985) maintained that holistic scoring is preferable because it more closely simulates the impression a reader the meaning of the text as a whole rather than focus on individual features of the writing, such as grammar. White (1985), Weigle (2002), and Hyland (2002) describe holistic scoring as involving carefully selected and experienced raters who use their skilled impressions to give a paper a single, integrated score that is supposed to represent the writers overall writing ability. Powills, Bowers, and Conlan (1979) explained that this holistic approach to scoring essays is an attempt to evaluate wholes rather than parts so that performance on one facet does not determine the judgment of performance on the whole. Different researchers have identified different reasons for the increase of the holistic scoring methods popularity. Some think that it is because the holistic scoring method is the most direct assessment technique (Cooper, 1997); while others think that the reason is that the holistic scoring method is the most economical, flexible and applicable assessment (Huot, 1990; Veal Hudson, 1983). As for White (2004), he pointed out that despite disagreements that arise about the scorings of some papers; this has become the standard way of scoring gatekeeping writing tests in large-scale writing assessments. Findings by Coffman (1968), Freedman (1979), and Breland and Jones (1984) supported that holistic scoring helps focus raters on meaning, showing that holistic raters of essay writing ability seem to attend more to content features than to mechanics and sentence structure. One potential advantage of holistic scoring methods in the assessment of second language writing ability is that they are more practical. Godshalk, Swineford, and Coffman, (1966), Alloway (1978), and Powills, Bowers, and Conlan (1979) all found holistic scoring methods to be more efficient than analytic scoring methods, particularly for large-scale exams, noting the advantages of such an approach in saving time and money. Furthermore, Smith, Winters-Edys, Quellmalz, and Baker (1980) estimated that holistic scoring takes approximately two-thirds the time of analytic scoring. Although holistic scoring method is widely accepted as the most appropriate tool for this purpose, many writing practitioners and administrators reportedly view the holistic technique with reservation (Enginarlar, 1991, p. 39). Hamp-Lyons (1996, p. 234) objects to the single point score resulting from holistic grading, which she claims obscures a pattern of consistent overemphasis or underemphasis on basic language control. Another claim is that a higher share of midlevel papers seem to end up with split scores-scores 2 points apart that must be resolved by a third grader-so holistic scoring may be less effective for evaluating midlevel performances than an analytic method might be (Elbow, 1996b). According to East (2009), the strength of holistic scoring lies in its practicality, which in large-scale testing contexts is an important consideration. Besides that, Vaughan (1991) argues that researchers looking at holistic assessment have often assumed that given a scale that describes the characteristics of an essay at each level, trained raters will assess the essays in the same way every time (p.112). Despite all the strength of holistic scoring, Prior research has established that there are some problems with holistic scoring method. Charney (1984) speculates that scores in holistic readings are based on superficial features, such as handwriting, essay length, word choice and spelling errors. This is in accord with Stewart and Grobe (1979), who concluded that raters were primarily influenced by essay length and freedom from simple mechanical errors (p. 214). Diederich, French, and Carlton (1961) found that judgments made by essay raters under holistic scoring conditions were unreliable. They recommended that considerable effort should be done to establish and maintain reliable ratings. Diederich (1974) claimed that until holistic scoring procedures were refined, the score an essay received could depend more on who the rater was than on any qualities of the text itself. Charney (1984), Gere (1980), and Odell and Cooper (1980) also questioned the premises on which certain conclusions about the reliability of holistic scoring have been based. Charney observed that the way holistic raters read texts may create an unnatural reading environment in which scores might only reflect agreement on salient but superficial features of writing, such as the quality of the handwriting or the presence of spelling errors. According to Hamp-Lyons (1995), English as Second Language writers have a special need for scoring procedures that go beyond just the assign of a single score because one score does not allow raters to distinguish between various aspects of writing, such as language control, range of vocabulary, or organizational control. Hamp-Lyons also pointed out that it is problematic for second language (L2) writers since different aspects of writing ability seem to develop at different rates for different writers. Some writers may be strong in expressing content and organization, but limited in grammatical accuracy; others may have excellent language control at the sentence level, but be unable to organize their writing. All the aspects mentioned by Hamp-Lyons should be taken into consideration when teachers of English in Malaysian secondary schools score an essay. Additionally, holistic scores are not easy to interpret because raters do not necessarily use the same criteria to arrive at the same scores. One rater may assign a score to a writing sample based on content and organization, while another rater assigns the same score on the basis of language control (grammar) and vocabulary. Charney (1984) noted that time constraints affect raters depth of processing. When spending only two minutes on a paper, a rater may assign a score that only reflects agreement on salient but superficial features of writing, such as the quality of the handwriting or the presence of spelling errors (p. 78). In another study, Arthur (1979) found that the holistic rankings of second language learners (L2) essays written by lower-intermediate adult learners were related to frequency of spelling and grammar errors, and that the best predictor of rating was the length of composition. In addition, Raforth and Rubin (1984) found that college instructors perceptions of composition quality were most influenced by mechanics. A single holistic score assigned to a writing sample may thus represent different aspects of writing ability for different raters. In holistic rating of L2 writing samples, a significantly larger amount of inconsistent textual information must be processed in a limited amount of time, which may affect the ratings. Several studies have suggested that a quick holistic read of an L2 writing sample may not allow the rater the time necessary to accurately assess the writing performance. Huot (1993) noted that when the rater is required to read a text so quickly for a limited set of criteria outlined in a scoring rubric, the need for agreement may hinder a rich, personal response to the text, thus affecting the consistency of the scores. Hamp- Lyons (2003) has cautioned that it is difficult to accurately capture the criteria used by raters during the quick read of a holistic scoring. Apart from that, Grobe (1981) concluded from an analysis of essays and correlation with holistically obtained scores that teachers see good writing as being closely associated with vocabulary diversity (p. 85). Sakyi (2001) supports Grobes view that raters decisions on awarding scores are significantly influenced by vocabulary diversity and the extent of grammatical error, but also by the range and sophistication of syntax and the style or format of the writing. Sakyi also notes from his own research that for raters who made a conscious effort to follow the scoring guide, the restrictions imposed on them to assign a single score at the end caused them to depend mostly on only one or two particular features to distinguish between different levels of ability (p. 129). Analytic Scoring Method The analytic scoring method was introduced at the same time as the holistic scoring method (Boring, 2002). Hunter (1996) explained that for the analytic scoring method, the domain being tested is subdivided to smaller subdomains. Each of these subdomains is then evaluated by itself. The sum of these subdomains would, by default, reproduce the whole. Proponents of analytic scoring methods (Jacobs, Zinkgraf, Wormuth, Hartfiel, Hughey, 1981; Hamp-Lyons, 1990; Huot, 1993; Weigle, 1999) have found several advantages to this method of scoring. One of the advantages is with multiple scores; analytic scoring schemes provide more information about a test takers performance than holistic scoring schemes and permit a profile of the areas of writing ability. Analytic scoring methods can provide specific feedback, which is needed in measuring achievement, predicting future success, and accurately placing students (Shaw, 2002; Bacha 2001), as well as providing useful diagnostic feedback on writing performance (Jacobs, et al., 1981; Hamp-Lyons, 1991; Cohen, 1994). In the assessment of L2 writing ability, analytic scales are very useful if a students writing ability is developing at differing rates for situation such as when vocabulary is good, but organizational control is lacking. Hamp-Lyons (1991), Huot (1996) and Weigle (2002) have suggested that analytic-type scales are generally more reliable than holistic-type scales since each candidate gets more than one score, and multiple scores contribute to reliability. Regarding intra-rater reliability, some research has suggested that analytic scoring is more useful than holistic in training inexperienced raters. It is argued that the raters can more easily interpret and apply the scoring criteria in separate domains than the criteria as described in one holistic rubric (Francis, 1977, and Adams, 1981, both cited in Weir (1990); Hartog, Rhodes, Burt, 1936; Cast, 1939; Bauer, 1981; and Weigle, 1998). Cumming (1990) suggested that an analytical scale tends to reflect what raters do when rating samples of writing or other language performance that is consider the individual features of writing one by one. According to Vacc (1989), the analytic technique is preferred over the holistic scoring method when detailed feedback is needed, especially with classroom assessments. Another reason to use analytic scoring method is that it has been argued that training raters to use analytic scoring rubrics is relatively easier than training them to use holistic scoring rubrics (Cohen, 1994; McNamara, 1996). According to Boring (2002), one advantage of the analytic scoring method over the holistic scoring method is that with the analytic technique, it is possible to give various weights to different subdomains based on their theoretical importance. In addition, Kroll (1990) described that it can help meet the need that many ESL learners who fail writing tests have, for feedback on both the deficiencies and the qualities in their writing (Kroll, 1990). There are, however, a number of disadvantages to using an analytic scoring scheme for the assessment of direct writing samples. The primary concern regarding analytic scoring is practicality. As Weigle (2002) pointed out, it generally takes longer to score a writing sample using an analytic rubric since the rater must make multiple decisions for each writing sample and thus must read the sample multiple times. Some critics doubt whether writing ability can be measured by a composite score based on different aspects of writing. White (1985) argued that writing is more than the sum of its parts, and that the use of an analytic scoring scheme may in effect divert attention from overall essay effect. Weigle (1999) noted information is lost when raters revise their scores on the different scales once they consider the single composite score. Raters may also tend to rate holistically rather than analytically so that the rater ends up assigning a writing sample the same score in every domain (Cohen, 1994). An additional problem with analytic scoring and rater bias surfaced in Cummings (1990) descriptive analysis of raters comments. Cumming (1990) also found that both novice and expert raters tended to analytically evaluate ESL compositions on both language control and writing ability, implicitly attributing separate values to each of these domains. Hamp-Lyons (1989) noted another potential problem in the reliability of analytic scoring schemes in that an analytic scoring method may favor essays where performance criteria are easily and quickly extracted from the writing sample. While an analytic scoring method offers the potential of additional information regarding the students L2 writing ability, there are potential problems of reliability and validity derived from the scoring procedures. Conclusion All the researches had shown that the method used by teachers in assessing students essay will definitely have an impact on students writing skills and ability. It is very vital to use the correct method so that students will improve their performance. From all the researches also, it can be concluded that most of them focus on the reliability, validity and practicality of the two scoring methods from many perspective. There is very few or none research is done on the teachers point of view on the two methods. In this research paper, the teachers opinions will be concern as much as possible. 2.2 Definition of terms Holistic scoring method is a method which teachers use to evaluate a piece of students writing for its overall quality. It is a method used in essay scoring whereby a single mark is awarded to an essay from a range of marks categorized in different performance bands in which each band is characterized by descriptors based on the total impression of the essay as a whole. It is widely used in Malaysian schools to mark essays in school-based and public examinations. Analytic scoring method is a method that teachers use to assess students written works more specifically and in detail. It is usually based on a well structured rubric where all the components that need to be assessed are stated out clearly and in detail. This method views an essay in as technical a manner as possible. It is not a common method used in Malaysian secondary schools. CHAPTER 3 METHODOLOGY 3.1 Introduction The first purpose of this study is to investigate the use of holistic scoring method and analytic rubrics in essay scoring among teachers of Malaysian secondary schools. This study is also aimed at discovering the relationship between the two methods. Another goal of this study is to find out how analytic scoring method can be applied in Malaysian secondary school. As for the research questions in this study, the first one is how holistic scoring method is used in marking students essays. The second question is how analytic scoring rubrics are used in marking students essays. The third question is why holistic scoring method is mostly used in school. The fourth question is why analytic scoring rubric is rarely used in marking school essays. The last question is how possible is it for analytic scoring rubric to be integrated in the curriculum of Malaysian secondary school. To fulfill the purpose and research questions for this study, only one method is used. Fifty survey questionnaires were distributed. 3.2 Population and sampling The population chosen for this study was teachers of English from Malaysian secondary schools. The population was selected randomly. There was no distinction between gender and races. Fifty teachers from different schools were given the questionnaire. Six schools were chosen to answer the questionnaires. All the teachers chosen to answer questionnaire were teachers of English. All the schools chosen are selected randomly to ensure that there is no bias. 3.3 Instrumentation The instrument used was a questionnaire consisting of 5 sections. The survey is constructed in 5 sections to answer all the research questions. A copy of the survey is attached to appendix A. 3.4 Procedure and time frame This research took about 6 weeks to complete. It started during the 6th week and ended in the 12th week of the semester. During this period of time, the researcher went to six Malaysian secondary schools to give out the questionnaire. First of all, the researcher identified the schools that are suitable for the study. Schools that have at least 8 teachers of English were selected. Secondly, the researcher went to the schools and met with the principal of each school. The researcher asked permission from the principal to give out the questionnaires. Almost all the schools asked the researcher to leave the questionnaires there for collection the next week. The researcher left the questionnaires there according to the number of teachers of English in each school. Thirdly, the researcher went back to each school the next week and collected all the completed questionnaires. Some questionnaires were not collected mainly because teachers were busy with examinations. After collecting all the questionnaires, data were analyzed. 3.5 Analysis plan All the data collected from the survey will be analyzed according to research questions. The first and second sections of the questionnaire are to answer the first two research questions on analytic and holistic scoring. These two sections consist of characteristics on both analytic and holistic scoring. The answers respondents have chosen will reveal their scoring method accurately. Item A1 to A3 will be on analytic marking method, while A4 to A6 will be on holistic marking method. The following graph will present the result for each item. Figure 3.1 . The outline of the presentation of result for section A of the questionnaire Where: A1 I use analytic marking method (mark according to specific criterion) A2 I concentrate on one criterion at a time and read the response specifically for that criterion. A3 I read the response and mark errors in spelling, sentence structure and coherence A4 I use holistic marking method (mark essay as a whole) A5 I read the response and give a mark as a whole A6 After the first reading I assign one band score to the response and confirm this after subsequent readings. Another graph will be for section B. The following graph is to summarize the percentage for section B. Figure 3.2. The outline of the presentation of result for section B of the questionnaire Where: B1 Is the marking scheme holistic guide? B2 Is the marking scheme analytic guide? B3 Do you find the marking scheme easy to interpret? B4 Do you find the marking scheme easy to apply? B5 Do you feel the assessment criteria in the marking scheme provide an accurate and fair assessment? B6 Do you think it is necessary to change the current marking scheme? The third section answers the third research question on holistic scoring. This section is to explore the reasons of teachers who use holistic scoring. The fourth section answered the fourth research question on analytic scoring. This section is to explore the reasons of teachers who use analytic scoring. 7 reasons presented in the questionnaires were according to literature review. This is to find out why teachers like to use holistic or analytic scoring. Two graphs as follow will be used to summarize the result. Figure 3.3. The outline of the presentation of result for section C of the questionnaire Where: C1 I like to use it. C2 It is more convenient. C3 It costs less. C4 It saves time. C5 It is reliable. C6 It provides good feedback for students. C7 It is fair. Figure 3.4. The outline of the presentation of result for section D of the questionnaire Where: D1 I like to use it. D2 It is more convenient. D3 It costs less. D4 It saves time. D5 It is reliable. D6 It provides good feedback for students. D7 It is fair. The last section is to examine the possibility of using analytic scoring in Malaysian secondary context. This answered the last research question. This section is on curriculum of Malaysian secondary school and the use of analytic scoring. If teachers are more positive towards using analytic scoring, it suggests that it is possible to use. The graph used to analyze the result is as follows. Figure 3.5. The outline of the presentation of result for section E of the questionnaire Where: E1 It is possible to mark students essays based on specific features and criterion in school E2 I think that teachers are willing to use analytic scoring rubric in school E3 Analytic scoring rubric is suita