Tourism and San Jose free essay sample

A Quick Tour of Jupiters Moons

A Quick Tour of Jupiters Moons Meet the Moons of Jupiter The planet Jupiterâ is the biggest world in the close planetary system. It has at any rate 67 known moons and a dainty dusty ring. Its four biggest moons are known as the Galileans, after space expert ​Galileo Galilei, who found them in 1610. The individual moon names are Callisto, Europa, ​Ganymede, and Io, and originate from Greek folklore. In spite of the fact that stargazers considered them widely starting from the earliest stage, wasnt until the primary rocket investigations of the Jupiter framework that we knew how bizarre these little universes are. The primary rocket to picture them were the Voyager tests in 1979. From that point forward, these four worldsâ have been investigated by the Galileo, Cassini and New Horizons missions, which gave incredibly great perspectives on these little moons. The Hubble Space Telescope has likewise examined and imaged Jupiter and the Galileans ordinarily. The Juno crucial Jupiter, which showed up in summer 2016, will give more pictures of these little universes as it circles around the monster planet taking pictures and data.â Investigate the Galileans Io is the nearest moon to Jupiter and, at 2,263 miles over, is the second littlest of the Galilean satellites. It is regularly called the â€Å"Pizza Moon† in light of the fact that its beautiful surface resembles a pizza pie. Planetary researchers discovered it was a volcanic world in 1979â when the Voyager 1 and 2 shuttle flew by and caught the first very close pictures. Io has more than 400 volcanoes that heave sulfur and sulfur dioxide over the surface, toâ give it that bright look. Since these volcanoes are continually repaving Io, planetary researchers state that its surface isâ geologically young.â Europa is the littlest of the Galilean moons. It quantifies just 1,972 miles acrossâ and is made for the most part of rock. Europa’s surface is a thick layer of ice, and underneath it,â there might be a salty expanse of water aboutâ 60 miles down. Every so often Europaâ sends crest of water outâ into wellsprings that tower in excess of 100 miles over the surface. Those crest have been found in information sent back by Hubble Space Telescope. Europa is regularly referenced as a spot that could be livable for certain types of life. It has a vitality source, just as natural material that could help in the arrangement of life, in addition to a lot of water. Regardless of whether it is or not stays an open inquiry. Stargazers have since quite a while ago discussed sending missions to Europa to look for proof of life. Ganymede is the biggest moon in the close planetary system, estimating 3,273 miles over. It’s made for the most part of rock and has a layer of salt water in excess of 120 miles underneath the cratered and dry surface. Ganymede’s scene is partitioned between two sorts of landforms: exceptionally old cratered districts which are dull shaded, and more youthful regions containing sections and edges. Planetary researchers found an exceptionally flimsy air on Ganymede, and it’s the main moon known so far that has its own attractive field. Callisto is the third-biggest moon in the close planetary system and, at 2,995 miles in distance across, is about a similar size as the planet Mercury (which is a little more than 3,031 miles over). It’s the most inaccessible of the four Galilean moons. Callisto’s surface reveals to us that it was shelled since its commencement. Its 60-mile thick surface is secured with pits. That recommends the frosty outside is extremely old and hasn’t been reemerged through ice volcanism. There might be a subsurface water sea on Callisto, however conditions for life to emerge there are less great than for neighboring Europa.â Discovering Jupiters Moons From Your Back Yard At whatever point Jupiter is noticeable in the evening time sky, attempt to locate the Galilean moons. Jupiter itself is very splendid, and its moons will look like little dabs on either side of it. Under great dim skies, they can be seen through a couple of binoculars. A great patio type telescopeâ will give a superior view, and for the eager stargazer, a bigger telescope will show the moons AND highlights in Jupiter’s bright mists.

The Definitive Guide to Fama-French Three-Factor Model

The Definitive Guide to Fama-French Three-Factor Model If youre an investor, financial analyst or a financial manager, by now, youve definitely heard of the Fama-French three-factor model.But just because you heard about it, doesnt mean that you understand it, what its used for and how to use it yourself.And that is why were here!In short, this model describes stock returns, which is one of the most important factors investors take into consideration when choosing which project, product or company is worth their time and money.But, I’m not going to lie; the Fama-French model is a tricky business.So, today, we will cover everything you need to know, including:What is the Fama-French three-factor model?Why is it so important?How was it created?How is it calculated?What is it used for?What other types of models exist?We will cover all the details and yet explain everything as simple as possible.Turn off the WIFI on your phone, grab a cup of coffee, grab a pen and paper and prepare to learn!Buckle up!THE IMPORTANCE OF PAYING ATTENTION TO S TOCK RETURNSSince the Fama-French three-factor model is one of the most known tools to describe stock returns, first, we will shortly cover why this subject is important.You probably know from the movies that many investors out there focus on prices of stocks that are changing over time. They compare the movement of the prices from time to time.However, this is a common mistake, and heres why.Stocks usually pay out in dividends distribution of reward that is a part of the companies’ earnings to their respective shareholders.They are managed by the companies’ board of directors and can be issued as stock, shares, cash or in other ways, while cash dividends are the most common option.Funds, as well as companies, are often known for paying out dividends to their trusted shareholders.To get a clear picture of how stocks perform over a period of time, we should take into consideration capital gains as well as dividends.This is very useful when it comes to evaluating stocks and compa ring investment results when stocks are held for different periods of time.WHAT WAS THERE BEFORE THE FAMA-FRENCH THREE-FACTOR MODEL?This model is actually an extension to a model which existed before the CAPM (Capital Asset Pricing Model).CAPM is a one-factor model, and it explains the portfolios returns with the amount of risk it contains, according to the market.Basically, CAPM explains portfolio performance primarily using the performance of the market as a whole.The Capital Asset Pricing ModelCAPM describes the relationship between expected return in stocks and systematic risk.This is the first model of this kind. It is widely known and used for pricing risky securities and generating expected returns for assets, based on the risk and cost of capital.The following formula is used to calculate it:ERi  = Rf  + ßi*(ERm   Rf)where:ERi= Expected return of investmentRf= Risk-free rate (time value of money)ßi= Beta of the investment (a measure of risk)ERm= Expected return of the mar ket(ERm Rf) = Market risk premiumLogically, investors want to have compensation for the risk and the time value of money, which is represented by the risk-free rate.The other parts of the equation are there to address all additional risks the investor is facing.The beta of the investment measures the amount of risk the investment adds to the portfolio which resembles the market.If the Beta is greater than one, the stock is riskier than the market itself.If the Beta is equal to less than one, the formula will assume that the risk of a portfolio will be reduced.The Market risk premium is the return expected from the market. The stocks Beta is multiplied by the Market risk premium, and the result gives the manager or investor a required return which can be later used to figure out the value of the asset.So, whats the main point?The main goal of the CAPM formula is to determine if the stock is valued as it should be.The question CAPM answers is: is the value of the stock good when its e xpected return is compared to the risk and time value of money?Disadvantages of CAPMCAPM has been proven not to be so reliable in practice.None the less, it is still widely used because of its simplicity. It is still one of the easiest tools to compare alternatives when investing.But, one of the problems that this model has is that, when we include the Beta in the formula, we are assuming that the risk can be completely measured by a stocks price volatility. But, moving the price in two different directions is not equally risky.CAPM also assumes that the Risk-free rate stays the same during the period of discounting.In real life, holding periods last for more than 10 years, so its highly unlikely that this rate stays the same for that entire period.When the Risk-free rate is increased, the stock can end up being overvalued because the cost of capital has increased as well.Finally, the biggest concern regarding CAPM is that future cash flows can be estimated for the process of discou nting.If this was the case, an investor or a manager could estimate the stock return value precisely, and then there would be no need for CAPM at all.Unfortunately, CAPM wasnt flexible enough it used only one variable to describe stock returns. It also didnt take into consideration situations with outperformance.CREATION OF THE FAMA-FRENCH THREE-FACTOR MODELSo, professors Fama and French created a new one, with two extra risk factors.Therefore, making it a better tool for performance evaluation.To the original factor, which is the market risk factor, two more were added.These two (SMB and HML) were added because of their consistent contribution to portfolio performance.Nowadays, it is very popular as a measurement for portfolio performance and for predicting future stock returns.Even today, there is a lot of debate about the outperformance tendency:Does it happen because of market efficiency?Or does it happen because of market inefficiency?To support the first theory, it is stated that outperformance happens because of the excess risk which value stocks and small-cap stocks.This excess risk is the result of a higher cost of capital and greater business risk.Supporters of the second statement explain the outperformance with incorrect pricing of the value of companies by market participants. Long-term, with value adjusts, this leads to the excess return.WHAT IS THE FAMA-FRENCH THREE-FACTOR MODEL?This is the way of thinking on which the Fama-French model is based on:Small-cap high-value companies usually do better than the overall marketHigher investments usually lead to bigger and better returnsValue companies outperform growth companiesProfessors Eugene Fama and Kenneth French, who were professors at the University of Chicago Booth School of Business, designed this model back in the 1990s to describe stock returns in portfolio management and asset pricing.The Fama-French three-factor model (in future uses the Fama-French model) pays attention to three major f actors:Market riskCompany size Outperformance of small vs big companiesValue factors Outperformance of high book/market vs small book/market companiesOne of the scientists, Eugene Fama, shared the Nobel Memorial Prize in Economic Sciences. This shows just how appreciated this professor is in the field of economics and how valued his work is.His contribution to the Fama-French model led to it being widely used by investors and financial managers today to help with making important decisions.This model is basically the result of an econometric regression of historical stock prices.Its based on the assumption that the riskier environment, the higher the compensation should be, which should lead to bigger earnings potential.An interesting fact is that the model was originally designed for just 4 countries:CanadaUnited States of AmericaUnited KingdomJapanOf course, local factors lead to better results and conclusion than global factors, because they better explain the variation of time series in stock returns.So, with a few adjustments and with updated risk factors, the model also became useful for Asia, Europe and other regions.FORMULAAll of this seems rational, but how do I put it to use?Well, when we talk about the Fama-French model, in order to describe stock returns, our final goal is to calculate the portfolios expected rate of return.This is done with the following formula:Portfolios Expected Rate of Return = Risk-free Rate + Market Risk Premium + SMB + HMLor:r  = rf + ß1*(rm  â€" rf) + ß2*(SMB) + ß3*(HML) + ?  where:r  = Portfolios Expected Rate of Returnrf  = Riskfree Return Rateß1,2,3  = Factor’s Coefficient originally there was just 1, now there are 3 of them. This is the main innovation in the Fama-French model.(rm  â€" rf)  =  Market Risk PremiumSMB(Small Minus Big)  = Historic excess returns of small-cap companies over large-cap companiesHML(High Minus Low)  = Historic excess returns of value stocks* over growth stocks**?= Risk*Value stocks a re stocks which have a high book to price ratio**Growth stock are stocks which have a low book to price ratioThe historic excess values can be found for free on Kenneth Frenchs website.March 2019Last 3 MonthsLast 12 MonthsFama/French 3 Research FactorsRm-Rf SMB HML1.10 -3.15 -4.0813.38 1.73 -8.366.43 -3.57 -15.44Fama/French 5 Research Factors (23)Rm-Rf SMB HML RMW CMA1.10 -3.56 -4.08 0.91 -1.0113.38 1.02 -8.36 0.55 -4.256.43 -5.81 -15.44 -0.58 -0.20Fama/French Research PortfoliosSize and Book-to-Market PortfoliosSmall Value Small Neutral Small GrowthBig Value Big Neutral Big Growth-4.34 -2.87 -0.63-1.62 0.42 2.829.86 12.77 19.378.41 12.77 15.62-3.75 0.70 8.70-4.64 7.20 13.80Size and Operating Profitability PortfoliosSmall Robust Small Neutral Small WeakBig Robust Big Neutral Big Weak-2.81 -3.83 -1.392.64 0.92 -0.6014.79 11.67 15.8814.59 13.39 12.40-5.90 1.16 5.4813.18 5.80 2.96Size and Investment PortfoliosSmall Conservative Small Neutral Small AggressiveBig Conservative Big Neutral Big Aggressive-1.84 -3.30 -2.310.71 0.27 3.2013.74 11.19 17.1811.08 12.89 16.133.60 1.96 0.678.78 5.77 12.11Calculation of the Fama-French three-factor model is commonly done in software programs capable of handling big data. Excel is one of the most popular ones out there. Remember, this is a three-factor model. To best explain it further, lets look at each factor one by one.1. Market Risk PremiumWhat does this part of the formula mean?(rm  â€" rf)The market risk premium basically represents the difference between the expected return of the market and the risk-free return rate. It gives the investor returns above the risk-free rate.2. Small minus big market capitalization (SMB)This factor is commonly known as the small firm effect. or the size effect, where size is determined by the companys market capitalization. It represents a historic excess of small-cap companies over large-cap companies.A side effect which is based on the market capitalization of a company is SMB. Its factor s coefficient is calculated via linear regression, and it can have negative and positive values.Again, the logic behind the Fama-French model is that higher returns come from small-cap companies, rather than large-cap companies.3. High minus low book-to-market ratios (HML)HML is used to show the spread in returns between companies which have high and companies which have a low book to market ratios (value companies and growth companies).Its factors coefficient is also calculated using linear regression, and it can have a negative as well as a positive value.This third factor shows that in the long run, growth companies have lower returns than value companies. This is why they are at the second place in the formula.The HML factor is used to evaluate profit margins, short-term and long-term. It states the anticipated performance of security in the future. In the formula high minus low, we calculate the associated range.Using HML we can see if a manager is relying on the value premium to earn an abnormal return, by investing in stocks with high book-to-market ratios.If this is the case, then a positive relation to the HML factor is shown.This explains why the portfolios returns are accredited only to the value premium. The original excess of the manager will decrease because the model is able to explain more of the portfolios return.Its not officially stated by the creators, Fama and French, why book-to-price ratios measure risk.However, there are theories that have been mentioned. If a stock has a high book-to-price ratio, it could mean that the stock is distressed.This means that its not likely for future earnings to happen and that is the reason why the stock is selling low.It could also mean that the stock capital is intensive. Intensive stock capital happens when stocks are more vulnerable to low earnings during slow times in economics.What would happen if a firm which isnt capital intensive were to become distressed?This is one of the questions these theori es do not answer. They both make sense, but when you think about them, they explain completely different situations.There is a third theory which states that the broad market index weighs stocks in accordance to the market capitalization. This makes it biased to size and blind for valuation.This leads to thinking that the added two factors in this model are just a couple of tweaks, which address these problems.This is the reason why momentum was added as another factor, to show where capitalization has been putting their money lately, instead of showing where it has been put for years, like the market capitalization factor shows.Momentum was later added as a factor to a different version of the Fama-French model, but we will cover more on that later in the article.USES OF THE MODELAll of this is fine to me, but how do I put in practice what Ive learned here?Well, weve established that when we look long-term, small companies have a tendency to outperform large companies. Also, value companies do better than growth ones.Fama and French studied the model further and found that it can explain the majority of diversified portfolio returns.It explains a whole 90% of it to be exact, where the original CAPM described just 70% of diversified portfolio returns. Source: corporatefinanceinstitute.comIm an investor, how do I use this model?Fama and French insist that investors must be ready to handle extra periodic underperformance and short-term volatility that can happen in a short period of time.To put it bluntly if you are investing for 10 or more years, you will be rewarded in the long run for your periodic losses in the short run.When you combine size and value factors with their beta factors, they explain about 90% of the return in your diversified stock portfolio.This was proven when Fama and French ran their studies with thousands of random stock portfolio to test their model.With this model, you as an investor can construct a portfolio where you can see the average expected return, all according to the relative risks youve assumed.The main factors which drive the expected returns are:market sensitivitysize sensitivityvalue stocks sensitivity, measured by the book to market ratioIf any additional average expected return occurs, it is attributed to unsystematic or unpriced risk.Using the model, it is possible to separate the skill of the investor from the higher returns.If the three factors can completely explain the portfolios performance, what is the manager doing?The high returns didnt happen because of his or her abilities or skills.Well, the manager should contribute to good performance by picking good stocks. Unfortunately, there isnt a formula yet which makes decisions for you perfectly. Making good decisions is still a skill only people possess.A lot of studies in emerging markets were conducted to see how the model would handle in that territory.The High Minus Low book-to-market ratio still explains everything it should very well.Unfortunately, the same cant be said for the market value of equity factor. This is why a fresh three-factor model was introduced by Foye, Mramor and Pahor in 2013.They replaced the market value of equity factor with a more useable one.DIFFERENT FAMA-FRENCH MODELSThe Fama-Frenc h model has gone through changes over time. Now, there are also the four-factor and the five-factor versions of the model, which require more information to calculate but give more detailed results.1. The Four-Factor modelThis is an extension to the regular three-factor model, created by Mark Carhart. It adds the momentum factor for asset pricing of stock, commonly also known as the MOM factor (monthly momentum).What does momentum mean?Momentum in a stock is when the stock price is rising, and it has a tendency to keep rising. Same goes for the other way around if the stock price is declining, momentum means it will keep going down.Monthly momentum is the difference between the equal weighted average of the lowest performing companies and the equal-weighted average of the highest performing ones, lagging one month.If a stocks average of returns for the past 12 months is positive, we say that the stock is showing momentum.The four-factor model is actively used as a model for managem ent and mutual fund evaluation.Momentum strategies are still very much used in financial markets where financial analysts give buy or sell recommendations based on the yearly price high/low.2. The Five-Factor modelBack in 2014, two more factors were added to the original Fama-French model profitability and investment.The first being a simple difference between the returns of companies with high and low operating profitability, while the investment factor is the difference between the returns of companies which invest conservatively and those which invest aggressively.The fourth factor, profitability, suggests that firms which report higher earnings in the future have higher returns in the stock market.Investment is the fifth factor, and it is closely related to the concept of internal investments and returns. It suggests that companies which direct their profit to big growth projects are more likely to experience losses in the stock market.It is found that the CAPM and the three-fa ctor models, in some cases, dont explain properly cross-sectional variations in portfolio returns.In cases like these, the five-factor model is a much better choice for a tool for evaluation.KEY TAKEAWAYSThe three factors are market risk, company size (SMB) and value factors (HML).The Fama-French model is an extension to the one-factor Capital Asset Pricing Model (CAPM). A new model was created because CAPM isnt flexible and doesnt take into consideration overperformance.Value companies do better on the market than the growing companies.The bigger and riskier the investment, the higher the payoff should be.Local factors explain better than global factors the variations in time series in stock returns.We use the Fama-French model to calculate the Portfolios Expected Rate of Return.No matter how precisely this model describes the stock returns, it is up to the managers or investors to choose where it would be good to invest.The four-factor model adds the momentum factor, which describ es where the value of the stock will be based on the value trends.The five-factor model takes into consideration two extra factors profitability and investment.FINAL THOUGHTSAnalyzing the past is useful to learn from those experiences and drive conclusions from them.However, investing in the future is even more important.By investing we are giving up short-term gains in the hopes of gaining long-term gains.That hope can be slim, and it can also be very big and reliable.By calculating our risks and making our decisions based on the calculations, we improve our chances of gaining.Every day, decisions for the companys future are made by the investors and the companys management.Should we do this new project?Should we invest in this other company?Should we invest in this?All of these questions are hard to answer. The right investment will lead to a positive outcome for the company, while the wrong decision will lead to failure.The pressure to make this kind of decision is huge.Luckily, there are some tools that help us make the right decision.The Fama-French three-factor model is one of the well-known tools, managers and financial experts or analysts use to calculate whether an investment is worth the time and the money or not. It takes into consideration three factors which best describe the stock return value.Before you go on to decide your next big investment move, be sure to use this tool to up your chances of success.Hopefully, with this article, youve understood all the ins and outs of the Fama-French model, and you are now ready to use it!We hope that by next time we see each other, youll have already seen the payoff of your smart investments! Remember good luck favors well-calculated risks!

Aspects Of The Arthurian Romance In Sir Gawain And The...

Romantic works of the Arthurian age have existed over a number of eons tracing back to quite a number of languages native to the writers that immortalized the tales, this including Welsh, English, French, German, Spanish, Italian, Dutch and Scandinavian. Medieval romance is defined by the ideals that stood out from the tales including the romance, honor, loyalty and the moral authority as well as it explicated the social order which left a lot to be desired of the position of feminism in the society. Marie de France perhaps the only female write of her time has quite a number of Arthurian tales to her name up to including Equitan, Le Fresne, Bisclavret, Larval, Yonec, Laustic, Chaitivel and Chevrefoil. Her two works, Lanval and†¦show more content†¦Ã¢â‚¬Å"Love, she said, I admonish you now, I command and beg you, do not let any man know about this...†. Women although generally seen as the weaker sex always garnered a subliminal wand of control over their men. The romantic tales also apparently make it is oblivious of what the medieval concept of what the feminine figure represented and the role they played in the society. In the medieval literature, the role played by female often is a representation of many familiar traits and characteristics which the society still preserves. The issue of beauty, grace, attractiveness, loyalty and honesty almost completely exemplify the powerful attributes of women in both present and in the past. In medieval literature it separates the traits of women into distinct roles of women in the society. Women are seen to be the greatest gift to mankind revealing every thing that is good, beautiful and pure in the life. They are portrayed to share earnest love and pure honesty. Here Marie de France depicts her characters so. In Lanval and Cheverefoil the female characters are true to what their convictions, eliciting the deep feelings like love and loyalty regardless of the insinuated repercussions. Women were seen as possessions of their men and were thus required to show loyalty. This is what the writers sought to capture whether compelled or not the female characters espoused loyalty. In Marie de FranceShow MoreRelatedEssay about A Comparison of Arthurian Legend in Various Stories960 Words   |  4 PagesNielsen Friday November 19, 2010 A Comparison of Arthurian Legend in Various Stories Arthurian legend was a genre many writers used in Chaucer’s day. It is a story made of romances, heroism, and ballads mostly about Arthur’s chief knight Sir Gawain who was mainly a man of social and ethical virtue. Often time’s Arthurian legend is a story of a knight who fights the bad guy, learns a lesson, saves the day and get’s the girl. Although sometimes the knight may start off as the bad guy as he did in oneRead MoreLanval and Sir Gawain and The Green Knight Essays1154 Words   |  5 Pagesremarkable short narrative that engages the reader into a world filled with unrealistic elements, but enhances on the true meaning of romance, chivalry and nature during the years that King Arthur reigned. â€Å"Sir Gawain and The Green Knight† unfortunately does not have an author that can be recognized but this epic poem demonstrates the ghastly adventure of a knight who decides to defend the honor of young King Arthur against a supernatural being in th is malicious game of cat and mouse. Both of theseRead MoreSir Gawain And The Green Knight Essay1687 Words   |  7 PagesSir Gawain and the Green Knight contains ambiguity and irony that make it interesting to read and teach. 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From his search for the Holy Grail to his perfect society in Camelot with his development of the Round Table, KingRead MoreCharacteristics Of Medieval Romances2016 Words   |  9 PagesWhen someone thinks of a medieval romance, that person will more than likely think of these common characteristics: knights, quests, a lady, magic, romance, Christianity, and of course King Arthur. There is actually much more to these stories than just â€Å"A knight goes on a quest. He meets a lady. And they all live happily ever after.† A reader needs to know what features to look out for in order to know for sure what kind of story he is reading. A Handbook to Literature by William Harmon and C. HughRead MoreThe Popular Medieval Romance, Sir Gawain And The Green Knight1880 Words   |  8 PagesThe popular medieval romance, â€Å"Sir Gawain and the Green Knight,† explores many aspects of the Arthurian legend, including chivalry, religion, and courtly love. Although the poem does feature many female characters, one aspect that the Gawain poet does not touch upon is the role and place of women in this feudal society; all of whom live under the objectification of a male driven culture. One might say that the women featured in this romance are focused on more heavily than that of other literatureRead MoreSir Gawain And The Green Knight2344 Words   |  10 Pages Sir Gawain and the Green Knight: A Famous Failure   Sir Gawain and the Green Knight is one of the most intriguing Middle English chivalric romances known today. The poem is a delicately written balancing act between two cultures, clashing in a time of unease between the religion of tradition, (paganism) and the new religion, (Christianity). The poem is also one of the best known Arthurian tales, with its plot combining two types of folklore patterns, the beheading game and the exchange of winningsRead MoreThe Influence of the Supernatural on Courtly Conduct, Christianity, and Chivalry in Lanval and Sir Gawain and the Green Knight2424 Words   |  10 Pagesthe Supernatural on Courtly Conduct, Christianity, and Chivalry in Lanval and Sir Gawain and the Green Knight In the world of medieval literature the supernatural is a consistent theme, presented in extraordinary encounters, mysterious experiences and with magical objects such as potions, spells, and the prominent image of the green girdle of Lord Bertilak de Hautdesert’s wife in Sir Gawain and the Green Knight. 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In order for there to be a set of laws established for the knights of the Anglo-Saxon era, the law of chevalrie was created. Sir Gawain and the Green Knight has some insight into the rules of chivalry concerning one specifically: courtly love. The rules of â€Å"courtly love† require wit and deceit with an

My Leadership Qualities Were Developed Through Working...

It was the first day of class when my professor asked whether we would prefer an unconventional approach towards learning about critical thinking throughout the semester? And as you have guessed, almost all the students said yes in regards to the approval of the notion. As a result, instead of reading multiple chapters from the book and taking multiple-choice questions exam, we took part in volunteer programs. A program which was substituted as a class project along with another simple task. This paper will analyze on the following aspects of the class project. Firstly, how my leadership qualities were developed through working with the disabled students? Secondly, the conflicts I faced through the semester and their resolutions. And†¦show more content†¦Through such communications, we were able to conduct the project in a smooth and uninterrupted manner. Hence, my communication aspect of my leadership skills enhanced further. Let’s move on to the next topic, which is the conflict resolution strategy. Conflicts can be resolved in many different ways, but according to the University of Notre Dame, one of the best way to do so is through compromising. Compromising is a big step toward conflict resolution. Both courage and consideration are used when both parties look for common ground. You agree to negotiate larger points and let go of the smaller points; this style expedites the resolution process. Throughout the semester, I had the experience of dealing with 4 different schedules. Everyone was not available at a certain time together. Some of them do not come to school on certain days, the reason being that they live in New Jersey. As a result, being the leader of the group, I had to cancel some of my personal agendas to make time for the group project. An example of such incidence will be the day of the presentation, on which our group shared information about the various leadership opportunities a round campus to our clients. That was one of the days, when I had to reschedule my braces tightening appointment till the following week. Hence, one of the conflicts between our schedules were resolved through the process of compromising. Transformational volunteering is notShow MoreRelatedServant Leadership Essay1630 Words   |  7 PagesServant Leadership is a leadership style that leads by example, does not take credit for deeds done, and makes themselves as humble as possible to serve others. Servant leadership is focusing on serving the highest needs of others to help another individual achieve their personal goals. Servant leadership has to be developed by the person in the leadership role. The leader has got to be aware of themselves as a person before they can be aware of someone else’s needs. The leader has to be a moralRead MoreEssay On Social Work733 Words   |  3 Pagestheir problems and have the best quality of life they possible can. I understand that social work is a challenging occupation; however, I believe I have the skills and determination to pursue a career in social work. My main curricular interests are in social subjects such as geography and history. I enjoy finding out about the wo rld and the people. This year, I have been awarded with a Saltire Award, as I have been involved in a paired reading programme with a student who has reading difficultiesRead MoreWhy School And Learning Have Become An Entity Of Strength1225 Words   |  5 Pages(n.d.). Through experience, findings, and reflecting as to why school and learning have become an entity of strength, the history of a paradigm is relevant throughout understanding this warrant. â€Å"This paradigm of schooling was developed in the 1800s and popularized throughout most of the 20th century. Often called the â€Å"factory model,† it drew from the fields of sociology, business, and religion† (p. 5). Ingenious, these factors offset the balance of divine creativity; in which, disabled individualsRead MoreA Student Desk That Will Be More Efficient For The Students1771 Words   |  8 PagesFor my design I will do a student desk that will be more efficient for the students to work on. The age range for the desk can be f rom third-graders to any age student. For the desk I will be creating, the gender does not matter. The occupation for my desk will be for students to work on and also have extra things to meet their needs. This desk I will be creating could be for anyone, ranging from an amateur to a professional. The desk could be for non-disabled students to disabled students. The targetRead MoreGood Habits of Character are Necessary for Teachers and Their Administators2924 Words   |  12 Pages I feel it is important for educators and administrators to develop good habits of character, such as self-respect, generosity, good temper, and sincerity to name a few. Since good habits of character are developed in our youth, adults are responsible for instilling values in the young. It is important that teachers and administrators promote and maintain a high level of competence and integrity in practicing their profession. Without good habits of character, it would be impossible to teachRead Mo reTheory to Practice Literature Review3533 Words   |  15 Pagesexplaining how that particular theory can be used in my own nursing administrative practice. The Last stage is summarizing the paper and listing the references in alphabetical order. Pressure sore and skin tear prevention and treatment during a 10-month program Brillhart (2005) article reports the effectiveness of a 10-month skin care program conducted in residential Alzheimer’s disease unit. In this study 30 clients were selected, in which 26 were free of skin tear and 4 clients had stage I pressureRead MoreEffective Instruction for Inclusive Education Essay1933 Words   |  8 PagesIn recent years, several events have contributed to the increased participation of students with disabilities in regular classroom setting. The No Child Left Behind Act of 2001 (NCLB) stipulated that no more than 2% of the population be excluded from federal or state mandated testing. This means that all but the most severely disabled students will be held responsible for the material on yearly achievement tests and high stakes tests at the high school level. NCLB also requires that the teacherRead MoreThe Intersection Of Inclusion, School Culture, And Social Jus Tice Leadership7770 Words   |  32 PagesTHE INTERSECTION OF INCLUSION, SCHOOL CULTURE , AND SOCIAL JUS-TICE LEADERSHIP Educating students with disabilities has evolved immensely throughout history. Initially, students with disabilities were isolated and institutionalized. Society s perception was that it was not necessary or beneficial to invest time or resources into this group of people (Spaulding Pratt, 2015; Dybwad, 1990; Winzer, 1998). Direct advocacy and litigations caused changes in federal legislation (Griffith, 2015; LloydRead MoreSample Resume : My Service Learning Practicum3636 Words   |  15 Pages 2 Introduction My service-learning practicum takes place in the community setting at Connaught Elementary School in St. Catharines. At Connaught, I am doing a one-on-one mentorship with a grade eight student to help her with her transition into high school. 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The Superstitious Life Free Essays

Superstitions are Bored Superstitions are like a bad lie depends on you if you believe in it, superstitions depends on â€Å"good look† that is a different and more joyful word to say destiny, the begging of superstitions are more like the cause of the problems and the consequences aren’t â€Å"bad luck† the real consequences are â€Å"you brake it you pay it†. The consequences are the same in the superstitions and in the â€Å"real life† because if you pass under a ladder something can fall in your head and I think that could the â€Å"bad luck† for passing under a ladder. The â€Å"good luck† consequences, are also completely false because one time I hit my elbow, my mom told me don’t rub yourself and you will get good luck, I follow the advice of my mother and nothing happened, so is kind of fool to believe in superstitions. We will write a custom essay sample on The Superstitious Life or any similar topic only for you Order Now For many people the superstitions are like part of their life and let’s be intelligent you don’t depend on your â€Å"luck†, life depends on your attitude. Also the â€Å"superstitions â€Å"are different around the world because in some place the action you make here means something and maybe in china means another. Traditions are also like â€Å"superstitions† because you decide the way things’ sense let’s say an example in some parts of the world if you burp at the table you don’t have education, but in India if you don’t burp means that you didn’t like the food, so is completely contradictory. But this is my personal opinion and you don’t have to follow my thoughts, everyone can have different ideas and believe whatever you want. Be yourself and have a pleasant and good life. By Ricardo Linares Hernandez 3rd A How to cite The Superstitious Life, Papers

Sport can be local and global

What makes a sport local, regional, or global? Local cultures, communities and individual venues of a location may make sport remain local. Such local sports have a strong connection with history, culture and community of the location. These sports may also be available in other countries. However, participation and connection only remain strong in countries of origin. For instance, the Japanese Sumo Wrestling is only popular in Japan.Advertising We will write a custom case study sample on Sport can be local and global specifically for you for only $16.05 $11/page Learn More Some sports may be local but have a huge fan base and have become commercial enterprises. For instance, the US basketball and baseball are in other countries. However, these sports have their local backings from schools and colleges. Consequently, they have become a symbol of the US identity. Therefore, culture, community and national identity may make sport local. Some sports have a regional presence. Such sports are present in other locations of the world, but predominately in countries of origin. For instance, we do not only have baseball in North America where it originated, but also in Japan. On the other hand, some sports have acquired a global presence. This mainly occurs as a result of international competitions in leading sporting events, such as Olympic Games, and Soccer World Cup, among others. These sports enhance a sense of national identity and culture through international competition (Grimwade and Howard, 1997). Sports like soccer, golf, and tennis have a fan base across international televisions and have become successful through advertising revenues. Among these sports, soccer stands out as the most popular across the world. What major drivers are responsible for internalization of Manchester United? Manchester United has international merchandising sales through its Manchester United Merchandising. The club is growing its global fun base thro ugh Manchester United Magazine. At the same time, the club has televised games that go beyond the UK. For instance, Rupert Murdoch global media led to global growth of Manchester United in 1990s and early 2000. In Africa, Manchester United fan base as grown as a result of Super Sport from Dstv. Manchester United also as its own television channel, MUTV. The club’s popularity also grew as a result of Internet activities among its supporters (Bernstein and Blain, 2001). By the year 2003, Manchester United had a global fan base of 53 million.Advertising Looking for case study on health medicine? Let's see if we can help you! Get your first paper with 15% OFF Learn More Manchester United has sponsorships from leading companies such as Nike and Vodafone. These organizations have increased the global presence and financial strength of the club making it one of the wealthiest in the world. In addition, the cross-border take over by the Glazer family in 2005 increased the club’s global popularity (Stotlar, 2009). Manchester global fan base also grew as a result of its wins in the FA Cup, Premiership, and Europeans Champions League. The wins have attracted a range of regional sponsors (Amis and Cornwell, 2005). Consequently, the club’s revenue and profit have grown considerably. The club popularity also comes from its mixed players. A half of the club’s players consist of foreign players. Manchester United is a global club and business entity with an international business strategy (Rugman and Collinson, 2008). How important are Manchester United’s strong local roots to its international success? Manchester United growth starts from the local team and community. The club demonstrates strong regional culture of the North West industrial England. Rivalry and competition from other clubs such as Arsenal, Chelsea, and Liverpool, among others have created multinational brands in these teams. The case study shows that 90 perc ent of its revenue still comes from the local fan base. Manchester United has become part of the cultural identity of its English fans. References Amis, J. and Cornwell, B. (2005). Global Sport Sponsorship. Oxford: Berg Publishers. Bernstein, A. and Blain, N. (2001). Sport, Media, Culture: Global and Local dimensions. Portland, OR: Frank Cass Publishers.Advertising We will write a custom case study sample on Sport can be local and global specifically for you for only $16.05 $11/page Learn More Grimwade, J. and Cox, H. (1997). Global Business Strategy. Andover, UK: International Thomson Publishing Services. Rugman, A. and Collinson, S. (2008). International Business, 5th Ed. New York : Prentice Hall. Stotlar, D. K. (2009). Developing Successful Sport Sponsorship Plans. West Virginia: Fitness Information Technology. This case study on Sport can be local and global was written and submitted by user Stephanie Harvey to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Who vs. Whom

Who vs. Whom Who vs. Whom Who vs. Whom By Maeve Maddox No doubt about it, the pronoun whom is in its death throes. If you need a refresher, here’s the difference: Who is the subject form of the pronoun, so it’s the doer of an action, as in That’s the man who climbed Everest. (subject of â€Å"climbed†). Whom is the object form of the pronoun, so it receives the action, as in Whom do you like best? (object of â€Å"like†). Most grammarians agree that English speakers can get along just fine by using who for both subject and object, as we do with the pronoun you: You light up my life. (subject) I love you. (object) An entrenched idiom like â€Å"to whom it may concern† will probably stick around for a while longer. Speakers for whom the who/whom distinction comes naturally will continue to use both forms. Even speakers who use who as an object may continue to use whom when it stands immediately after a preposition, but for the most part, the use of who for whom is a non-issue. The use of whom for who, however, is another matter. A great many speakersincluding professional news reportersfall into what I call the something-between trap. When somethinga subordinate clause or a stock phrase like â€Å"in my opinion†comes between the subject pronoun and its verb, the writer may stumble and use whom instead of who. Observe the problem in the following examples. 1. The heroine is teen-aged Frenchy Hercules, whom one suspects is the directors wife, 2. A Chicago man whom police believe is responsible for 11 burglaries to sheds and garages in the village is scheduled to appear in court Sept. 24 on theft charges, authorities said. 3. Fire personnel radioed deputies to stop the driver, whom, according to reports, appeared to have been under the influence of intoxicants. 4. Before we started coming to BBBA, I [had] taken him to numerous pitching and hitting coaches whom in my opinion were out for the money and not the overall improvement of my sons baseball ability. In each example, the whom should be who. If the errors jumped out at you as soon as you read the sentences, you may as well stop reading now. If you’re not quite sure why these uses of whom are incorrect, read on. Whom is an object form–like him–but in each of these sentences, the whom being used as the subject of a verb. Who is the subject form. Writers can avoid falling into the something-between trap with whom by taking a close look at all the verbs. Because whom can only be an object, eliminate all the subjects first. Determine which subject word goes with which verb. 1. The heroine is teen-aged Frenchy Hercules, whom one suspects is the directors wife. This sentence contains three verbs: is, suspects, and is. The subject of the first is is â€Å"heroine.† The subject of suspects is â€Å"one.† The subject of the second is is â€Å"who† (not whom). The in-between trap is â€Å"one suspects.† NOTE: the verb â€Å"suspects† is what tripped the writer up. In another context, suspects. could be used transitively: He’s the man whom the detective suspects. In this sentence, suspects has no object. 2. A Chicago man whom police believe is responsible for 11 burglaries to sheds and garages in the village is scheduled to appear in court Sept. 24 on theft charges, authorities said. This sentence contains four finite verbs: believe, is responsible, is scheduled, and said. The subject of believe is â€Å"police.† The subject of is responsible is â€Å"who† (not whom). The subject of is scheduled is â€Å"A Chicago man.† The subject of said is â€Å"authorities.† NOTE: The in-between trap is â€Å"police believe.† In another context, â€Å"believe† could take an object, but not here. 3. Fire personnel radioed deputies to stop the driver, whom, according to reports, appeared to have been under the influence of intoxicants. This sentence contains two finite verbs: radioed and appeared. The subject of radioed is â€Å"Fire personnel.† The subject of appeared is â€Å"who† (not whom). The in-between trap is â€Å"according to reports.† 4. Before we started coming to BBBA, I [had] taken him to numerous pitching and hitting coaches whom in my opinion were out for the money and not the overall improvement of my sons baseball ability. This sentence contains three finite verbs: started, had taken, and were. The subject of started is â€Å"we.† The subject of had taken is â€Å"I.† The subject of were is â€Å"who† (not whom). The in-between trap is â€Å"in my opinion.† If all this seems like too much grammar to deal with, there’s a second option for avoiding the something-between trap with whom. Stick with who. (Now isn’t that an interesting construction!) Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Grammar category, check our popular posts, or choose a related post below:45 Synonyms for â€Å"Food†Awoken or Awakened?Captain vs. Master

About and For with Adjectives

About and For with Adjectives About and For with Adjectives About and For with Adjectives By Maeve Maddox The recent post on excited for got me thinking that a list of adjectives that take about and for might be useful. for eager for happy for (as in Im happy for you because you have succeeded.) therapeutic for unsuitable for about adamant about enthusiastic about exuberant about exultant about excited about elated about flippant about guarded about gullible about happy about (as in Im happy about my promotion.) irate about knowledgeable about nosy about overjoyed about phobic about relieved about snobbish about vague about Here are some quotations from newspapers: Sharks Evander Kane eager for 1st playoffs in 9th season Jaguars coach Doug Marrone happy for Bills, but wont delve into his odd exit from Buffalo. Such an announcement is inappropriate. If the Captain determined the airplane was unsuitable for the flight, it is his or her responsibility and Quarry neighbors irate about dumping, water quality. Benton Township residents near the Rocky Ridge Development quarry are upset about Detroit Lions veteran players are excited about first-round draft pick Frank Ragnow. He took snaps at both center and left guard at rookie Kristin Higgins was adamant about not pushing girly stereotypes on her daughter, and painted her room in shades of green. Higgins later Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Writing Basics category, check our popular posts, or choose a related post below:Creative Writing 101One Fell SwoopHow Long Should a Synopsis Be?

Persuasive Speech Assignment on seat belt Essay Example | Topics and Well Written Essays - 750 words

Persuasive Speech Assignment on seat belt - Essay Example I also referred to my speaker notes occasionally and glance at the presentation regularly to ensure that I was presenting the right content for each slide. So as to make the presentation more interesting, I ensured that I gesticulated. I also made use of my other body parts in application of whatever I have previously learnt about non-verbal communication. One of the things that make the audience get bored during a presentation is monotony. However good the content of the presentation may be, the audience will be distracted by a monotonous voice. In order to ensure that my presentation overcame monotony, I varied my tone and volume. My presentation was well organized. Each slide was not overcrowded with words. Also, each slide was dedicated to a subtopic. Essentially, this was done to ensure that my presentation and speech was well organized and flowed seamlessly. I believe that my presentation was a great

Support Assessment for Learning Coursework Example | Topics and Well Written Essays - 2500 words

Support Assessment for Learning - Coursework Example The assessment for learning should provide feedback to ensure the pupils identify personal improvement. The assessment must also encourage confidence for future improvement in comparison to the previous achievement1. Both the teacher and the student must be offered a platform for reflection on the pupil’s performance. Therefore, an assessment for learning must be a conclusive process with the ability to recognize, motivate and develop self-esteem of the pupil. The characters listed above are vital in the assessment of learning because they are the core values of the assessment for learning concept. Assessment must be employed by the staff to support the learning process. The staff must ensure that the assessment follow and fulfil the curriculum. The process ensures that learners experience is relevant, engaging and motivating with the assessment support learning. The teachers must ensure that the assessment has high-quality interactions and feedback encouraging transition on t o the next steps of learning. The pupils must understand clearly the kind ad quality work essential for success to be achieved together with the agreed outcomes2. Assessment for the young involves dialogue between the learners and the staff. The dialogue must be based on the thoughtful probing focusing on key points of learning. Assessment includes the use of dialogues, activities and tasks that encourage interaction with the learners. The interaction must challenge them and build on the learning achieved to date. In addition, the use of discussion will encourage the development of confidence in communicating and thinking about learning. Despite encouraging participation, the assessment for learning must support the individual learning process. Individual learners should seek and receive accurate and developmental feedback on what has been learnt and the extent of learning. Personal strengths and weakness must be discussed with the teachers in relation of the strengths of the work p resented. The evaluation of personal learning process will ensure the assessment or learning is comprehensive and effective. The learners should be engaged fully in their learning3. The learners must collaborate during planning, shaping and reviewing of the progress. The review of the process includes; shaping of their learning, agreeing, and establishing targets. The staff should provide regular oral and written feedback on the pupils work whilst discussing the strengths and areas of improvement in the process. They must work with their peers offering comments on the progress. The approach in assessment will promote learner engagement while encouraging learners to be independent in the learning process. The success of the assessment learning support depends on the ability to integrate, motivate, inspire and lead the learner to personal learning which ensures self-esteem and confidence. The development of effective learning support assessment depends on contributions from learners, teachers and the support staff4. In addressing the various issues, in assessment support learning, the paper will evaluate the participation and role of individuals in the process and establish effective approach strategy. Characteristics of assessment for learning Assessment for learning has several characteristics that are important for success. The assessment must reflect and share the learning goals with pupils. The sharing of the goals with the pupil ensures that the objective and outcomes

Evolving Federalism Essay -- essays research papers

Evolving Federalism Pre-Class Assignment   Ã‚  Ã‚  Ã‚  Ã‚  Federalism by definition is the division of power between a central government and its participating members. How that power is divided is the subjective aspect of federalism that was before the framers of the United States. Through compromise and necessity the seeds for a strong central government were planted alongside already strong state governments. Over time the seeds for strong central government grew; wars, economic fluctuations and national growth established a strong central government. As America’s idea of federalism changed the central government grew more powerful, the state’s government gave more power away, and local governments were established. In American Intergovernmental Relations, Laurence O’Toole cites Harry Scheiber five stages of federalism to identify three key terms of federalism in the U.S as â€Å"dual federalism,† â€Å"cooperative federalism,† and â€Å"creative federalism.† According to Schei ber the five stages of federalism, are still a valid history of federalism in the United States.   Ã‚  Ã‚  Ã‚  Ã‚  The first stage, 1789-1861, he calls the â€Å"era of dual federalism† in which national, state, and local governments operated independently of one another. This â€Å"layer-cake† stage was a product of Congress, â€Å"refraining from making innovative policy in many areas formally opened to it by the Court.† It was apparent during this time that Congress was not yet ready to move to a more centralized government that would interfere with state and local governments.   Ã‚  Ã‚  Ã‚  Ã‚  Scheiber identifies the second stage, 1861-1890, as a period of transition to a more centralized government. Change to the Constitution, expansion of federal court powers, business regulation, and Supreme Court activism all worked to increase the power of national government and move towards a more centralized view of federalism. Schreiber’s third stage from 1890 to 1933 continues this move towards centralization with World War I as a catalyst.   Ã‚  Ã‚  Ã‚  Ã‚  Franklin D. Roosevelt’s New Deal â€Å"inaugurated† Scheiber’s fourth stage. â€Å"Cooperative federalism† surfaces in this stage that promoted interaction and funding between the state, local, and national governments in order to facilitate new programs under the New Deal. Although this stage, labeled the marbl... ...very well improve the education system in states such as Arizona, where charter schools are becoming popular but still lack quality.   Ã‚  Ã‚  Ã‚  Ã‚  Education is a strong example of competitive and cooperative federalism. Most schools receive federal grants to ensure certain programs are instituted in public schools. States provide the majority of funding to local school districts and mandate the majority of the curriculum. Local governments allocate the funds from the state to accomplish the curriculum goals as they see fit. Yet all three of these governments compete for control over how their children get educated.   Ã‚  Ã‚  Ã‚  Ã‚  Education is a prime example of shifting power in the U.S. Landmark Supreme Court cases such as Brown v. Board of Education has forced integration upon the states. Recently, the issue of the word â€Å"God† in the pledge of allegiance has surfaced in the education field and may be decided in federal courts. Bush has made it clear that he favors education reform at the federal level. Whatever the outcome, one of the three levels of government will seize more power from the education issue in this era of competitive federalism.

Project Report on Retail

EXECUTIVE SUMMARY Retailing consists of all activities involved in selling goods and services to consumers for their personal, family or household use. It covers sales of goods ranging from automobiles to apparel and food products and services ranging from hair cutting to air travel and computer education. Sales of goods to intermediaries who resell to retailers or sales to manufacturers are not considered a retail activity. Retailing can be examined from many perspectives. A manufacturer of white goods like washing machine and refrigerators has many options to reach out to consumers. It can sell through dealers, the company showrooms (Sony World, Videocon Plaza) or hypermarkets (Big Bazaar). The retail sector in India is highly fragmented with organized retail contributing to only 2% of total retail sales. The retail sector in developed countries was also highly fragmented at the beginning of the last century but the emergence of large chains like Wal Mart, Sears, and Mc Donald’s led to rapid growth of organized retail and growing consolidation of the retail industry in the developed countries. Today, in India we see a rise in the purchasing power and growth of a middle class which follows the western lifestyle. Hence, conditions are conducive for the rapid growth of organized retail in India. Organized retail is growing rapidly and we see the emergence of large organized retail chains like Shoppers’ Stop, LifeStyle and Westside. We also find retail malls mushrooming all over the country. The opportunities in retail industry in India will increase since Indian retailing is on the threshold of a major change. However, with the rapid growth in organized retail and increased emphasis of manufacturers on understanding sales at the retail level, the study of retailing has become increasingly relevant. -1- OBJECTIVE OF PROJECT v To understand the concept of retailing. v To understand the role and relevance of retailing for business and economy. v To identify the activities associated with retailing v To understand the operational structures associated with retail organizations v Understanding consumer behaviour in retailing v Understanding the importance of store location for retailer v To understand the nature of merchandise budgeting and unit planning v To understand the concept of relationship marketing and how does it apply to the retail sector. -2- METHODOLOGY This project is the mixture of theoretical as well as practical knowledge. Also it contains ideas and information imparted by the guide. The secondary data required for the project was collected from various websites and books of re puted authors. The project started with sorting all the raw data and arranging them in perfect order. To add value to the project and to understand the practicality of retailing business, I have visited various stores who are the best ones in retailing business. Further, to understand the consumers better, a field survey was also conducted to find out the tastes and preferences, purchasing habits, expectations of the consumers etc. Analysis of this primary data has been done to actually understand the survey in a better way. -3- ORIGIN OF RETAILING Although retailing does not enjoy the status of an Industry, the sheer size this behemoth will develop into, is grabbing attention. The origin of retail in India dates back to ancient times when the melas and mandis made heir presence felt. The changing socio economic patterns coupled with the consumption increase led to the emergence of the convenience stores, which became a par of the civic planning. The next step was the commercial plazas, which comprised merely shops offering a variety of goods and services clubbed together. The inconveniences caused by lack of parking place, toilets and maintenance, ushered in the entry big international brands opening their exclusive showrooms. The opening up of the economy only fueled this globalization. There are, however, certain bottlenecks as well; the scarcity of space, coupled with the stringent provisions of the Rent Control Act, act as a dissuasive factor for many players to initiate operations in the main markets. This also explains why the Raheja’s forayed into their retail venture- Shoppers’ Stop. CURRENT SCENARIO The Indian population is whooping 1 billion with 75% of the people living in villages and small towns. It is only natural that the agricultural sector is the biggest employer with its contribution to GDP pegged at 26. %. Retail is India’s larges industry after Agriculture with around 20% of the economically active population engaged in it and generation 10% of our country’s GDP. The growth of the efficient small store culture can be attributed to the 6 million villages distributed across the length and breadth of the country. The 12 million retail outlets in India are the hi ghest in the world, and cater to the purchase need of its pole. It is interesting to note, that the Urban Population although just 25% of the total, is an astounding 250 million in size and is growing at a healthy rate of 7% per annum. The chief driver of growth in the retail sector has been the consumer, with the spending increasing at an average of 11% per annum. The Core and the Lower middle have increased their share in the Growth. -4- The Indian consumer’s shopping needs are and traditionally have been fulfilled by Kirana sores (corner stores), Kiosks, street vendors, weekly bazaars and high-street shops for consumer durables and luxury goods. To cater to this, each city developed its own identity and shopping cluster, for instance in Pune there is MG Road, Bangalore has Brigade Road and Commercial Street, Delhi has Connaught Place, Karol Bagh and South Extension. India will have 358 shopping malls by 2007. Droves of middle-class Indians have broken off their love of traditional stand-alone shops that have no ACs, organized parking lots and other public amenities, according to a study by fashion magazine Image. At present (September 23, 2005), In India we have 96 malls, covering an area of 21. 6 million sq ft. And by year end the count will shoot up to 158 malls. It will cover 34 million sq ft area. Currently estimated at $205 billion to grow to $400-500 million, over the next 2-3 years. v Smaller cities will have about 12. 8 million sq ft of mall space by 2007. Ludhiana to account for 2. 5 million sq ft. v Ahmedabad about 3. 4 million sq ft. v Delhi and Mumbai now have maximum number of shopping centres. v Gurgoan saw the largest development in terms of retail outlet. v North region has 39% of India’s retail share. v East region has 10% of India’s retail share. v West region has 33% of India’s retail share. v South region has 18% of India’s retail share. v Government and co-operative sector is also making their steps in retailing. For example, Kendriya Bhandar, Apna Bazar, Mother Dairy, Super Bazar etc. -5- MAJOR RETAILER SPACE HOLDERS IN INDIA ORGANIZATION Bata RPG Raymond Area Sq. ft 10,00,000 6,00,000 5,42,000 Pantaloon/Big Bazaar 5,00,000 Metro cash-n-carry Spencer LifeStyle Shoppers Stop Trent Globus Piramyd 3,00,000 2,80,000 2,50,000 2,00,000 2,00,000 1,75,000 1,50,000 The 2nd Annual Images Retail Awards (September 22, 2005):v Retail Face of the Year: Kishore Biyani, MD, Pantaloon Retail India Ltd. v Retail Destination of the year: Shoppers’ Stop v Retail Launch of the Year: Pantaloon Central. v Shopping Centre of the Year: Inorbit Mall v Retail Brand of the Year: Titan v Retail Concept of the Year: Reliance Truck Stop. Retailer of the Year: Value Retailing: Big Bazar v Retailer of the Year: Catering Service: McDonald’s. v Retailer of the Year: Food & Grocery: Food Bazaar. v Retailer of the Year: Health & Beauty: VLCC. v Retailer of the Year: Entertainment: PVR. v Retailer of the Year: Department Store: Westside. v Retailer of the Year: Forecourt Retailing: Bharat Petroleum Corp. Ltd. v Retailer of the Y ear: Leisure: Crossword Bookstore. -6- SWOT OF THE MARKET STRENGTH 1. Organized retailing at US$ 3. 31 billion, growing at 8%. 2. 2nd largest contributor to GDP after agriculture at 20%. . Pattern of consumption changing along with shopping trends. 4. A Growing population will translate to move consumers. 5. Consumer spending increasing at 11% annually. 6. Almost 25 million sq. ft. retail space available. 7. Paradigm shift in shopping experience for consumers pulling in more people. 8. Most of the entrants to organized retail come from 3 main categories, and have ventured into retail as their business extension. v Real Estate Developers v Corporate Houses v Manufacturers/Exporters WEAKNESSES 1. Shortage of quality retail spaces at affordable rates. 2. Government regulations on development of real estate(Urban Land Ceiling Act) 3. Need to provide Value for Money-squeezing margins 4. Lack of industry status. 5. Retail revolution restricted to 250 million people due to monolithic urban-rural divide. 6. Footfalls not a clear indicator of sales as actual consumers lower in number. 7. Lack of huge investments for expansion. OPPORTUNITIES 1. Increasing urban population-more participants in retail revolution. 2. Increase in consuming middle class population. 3. Social factors like dual household income has enhanced spending power. 4. Spends moving towards lifestyle products and esteem enhancing products. 5. Availability of old industrial lands-prime real estate locked in sick industrial units. -7- 6. Average grocery spends at 42% of monthly spends-presents a huge opportunity. 7. Increase in use of credit cards. THREATS 1. Rising lease/rental costs affecting project viability 2. FDI restrictions in the retail sector 3. Poor monsoons and low GDP Growth could affect consumer spending drastically. 4. Archaic labour laws are a hindrance to providing 24/7 shopping experience 5. Personalized service offered by Mom-&-Pop stores. 6. Unavailability of qualified personnel to support exponential growth in retail. 7. Differentiate taxation laws hindering expansion. RETAIL VIABILITY As per the CII McKinsey report, based on a GDP growth rate of 6-7% per annum, by 2010 the retail sector is expected to be US $ 300 Billion industry. Some of the major factors hindering the growth of this sector are as follows: v The non-industry structure and status v The lack of adequate infrastructure v FDI restrictions in this sector v The huge investments required in expanding their markets, v Problems associated with working Capital funding from lending Institutions. 8- BIG BAZAAR: THE INDIAN WAL-MART Pantaloon Retail (India) Limited is today recognized as one of the poneers in the business of organized retailing in the country with a turnover of over RS 400 crores in the financial year ending June 2003. The company is headquartered in Mumbai with zonal offices at Kolkata, Bangalore and Gurgaon (Delhi). It has 4 kinds of stores; 14 P antaloon Family Stores, 7 Big Bazaar discount hypermarkets, 6 Food Bazaar Stores with over 6. 5 lakh sq ft retail space across Kolkata, Mumbai, Thane Pune, Hyderabad, Bangalore, Bagpur, Ahmedabad, Kanpur, Chennai and Gugaon (Delhi). Pantaloon Retail India Limited is the flagship company of the Pantaloon group promoted by Mr Kishore Biyani. It has been one of the pioneers in organized retailing in India. It began its retailing operations in India way back in 1987. Currently, it manufactures and sells ready-made garments through its own retail outlets and two discounting stores. The company plans to diversify into the business of discounting in a big way, which is targeted at the growing middle class segment. It has India’s second largest retail chain with 17 retail outlets and two discounting stores branded as Big Bazaars across the country at an estimated retail space of ,01,300 sq. ft. The company plans to double its retail space in the next couple of years. Pantaloon has come up with an excellent revenue model, focusing on ‘value for money’ segment. Pantaloon plans to target the upper middle and the middle class segment, which forms the large chunk of Indian population. This segment is very price conscious and always looks out for value for money. Pantaloon successfully launched its discount store chain, which targets the large and growing upper-middle and middle class of Indian society. This is totally in contrast to the other organized retail players, which focus on high net-worth of individuals. Big Bazaar has strong own brand names in its portfolio across product categories. The brands include Pantaloon, John Miller and Bare. Higher percentage of ‘own brand’ sales improves margins, thus reducing the breakeven level of sales. Big Bazaar has diversified from apparels to household items in its discount stores. This has enabled them to enlarge their basket of offerings. -9- RETAIL CONCEPT The distribution of consumer products begins with the producer and ends at the ultimate consumer. Between the producer and the consumer there is a middleman—the retailer, who links the producers and the ultimate consumers. Retailing is defined as a conclusive set of activities or steps used to sell a product or a service to consumers for their personal or family use. It is responsible for matching individual demands of the consumer with supplies of all the manufacturers. The word ‘retail’ is derived from the French work retaillier, meaning ‘to cut a piece off’ or ‘to break bulk’. A retailer is a person, agent, agency, company, or organization which is instrumental in reaching the goods, merchandise, or services to the ultimate consumer. Retailers perform specific activities such as anticipating customer’s wants, developing assortments of products, acquiring market information, and financing. A common assumption is that retailing involves only the sale of products in stores. However, it also includes the sale of services like those offered at a restaurant, parlour, or by car rental agencies. The selling need not necessarily take place through a store. Retailing encompasses selling through the mail, the Internet, doorto-door visits—any channel that could be used to approach the consumer. When manufacturers like Dell computers sell directly to the consumer, they also perform the retailing function. Retailing has become such an intrinsic part of our everyday lives that it is often taken for granted. The nations that have enjoyed the greatest economic and social progress have been those with a strong retail sector. Why has retailing become such a popular method of conducting business? The answer lies in the benefits a vibrant retailing sector has to offer— an easier access to a variety of products, freedom of choice and higher levels of customer service. As we all know, the ease of entry into retail business results in fierce competition and better value for customer. To enter retailing is easy and to fail is even easier. Therefore, in order to survive in retailing, a firm must do a satisfactory job in its primary role i. e. , catering to customers. Retailers’ cost and profit vary depending on their type of operation and major product line. Their profit is usually a small fraction of sales and is generally about 9-10%. Retail stores of different sizes face distinct challenges and their sales volume influences 10- business opportunities, merchandise purchase policies, nature or promotion and expense control measures. Over the last decade there have been sweeping changes in the general retailing business. For instance, what was once a strictly made-to-order market for clothing has now changed into a ready-to-wear market. Flipping through a catalogue, picking the right colour, size, and type of clothing a person wanted to purchas e and then waiting to have it sewn and shipped was the standard practice in the earlier days. By the turn of the century some retailers set up a storefront where people could browse, while new pieces were being sewn or customized in the back rooms. Almost all retail businesses have undergone a similar transition over the years. DRIVERS OF CHANGE IN RETAILING v Changing demographics and industry structure v Expanding computer technology v Emphasis on lower costs and prices v Emphasis on convenience and service v Focus on productivity v Added experimentation v Continuing growth of non-store retailing. In today’s competitive environment retailers have redefined their role in general, and in the value chain in particular. Retailers act as gatekeepers who decide on which new products should find their way to the shelves of their stores. As a result, they have a strong say in the success of the product or service launched by a business firm. kA product manager of household appliances claimed, ‘Marketers have to sell a new product several times, first within the company, then to the retailer and finally to the user of the product. ’ It is a well-established fact that manufacturers need to sill their products through retail formats that are compatible with their business strategy, brand image, and market profile in order to ensure a competitive edge. The role of retailers in the present competitive environment has gained attention from manufacturers because external parties such as market intermediaries and supplying partners are becoming increasingly powerful. It is necessary for -11- marketers of consumer products to identify the need and motivations of their partners in the marketing channel. This is especially true in the case or new products. The increasing numbers of product categories followed by multiple brands in each category complicate decision-making for both manufacturers and market intermediaries. Retailers want of optimize sales within the limited shelf space, governed by their individual sales philosophy. Retailers undertake risk in selecting a portfolio of products or brands to offer to their customers. Retailers have to make optimum selection of goods to be sold given the following major concerns: v Selling space available is relatively fixed and must return maximum profits. If such space is occupied by merchandise that is not moving, it will not result in profit. The retailer may have to resort to substantial price reductions in order to get rid of the unsold stock. There is always the risk of non-performance in terms of quality, supplies etc. , which in turn harms the image of the retail outlet. Retailing is a dynamic industry—constantly changing due to shifts in the needs of the consumers and the growth of technology. Retail formats and companies that were unknown three decades ago are now major forces in the economy. Therefore, the challenges for retail managers the world over are increasing—they must take decisions ranging from setting the price of a bag of rice to setting up multimillion dollar stores in malls. Selecting target markets, determining what merchandise and services to offer, negotiating with suppliers, training salespeople—these are just a few of the many functions that a retail manager has to perform on a perpetual basis. The world over retail business is dominated by smaller family run chain stores and regionally targeted stores but gradually more and more markets in the western world are being taken over by billion dollar multinational conglomerates, such as Wal-Mart, Sears, McDonald’s, Marks and Spencer. The larger retailers have managed to set up huge supply/distribution chains, inventory management systems, financing pacts and wide-scale marketing plans. In the backdrop of globalization, liberalization and highly aware customers, a retailer is required to make a conscious effort to position himself distinctively to face the -12- competition. This is determined to a great extent by the retail mix strategy followed by a company to sell its products. GLOBAL RETAIL-INDUSTRY-RELATED FACTS v Worldwide retail sales are estimated at US $7 trillion. v The top 200 largest retailers account for 30% of the worldwide demand. The money spent on household consumption worldwide increased by 68% between 1980 and 1998. v Retail sales are generally driven by people’s ability (disposable income) and willingness ( consumer confidence ) to buy. v The 1998 UNDP Human Development Report points to the fact that global expenditures on advertising are ( including in developing countries ) increasing f aster than the world economy, suggesting that the sector is becoming one of the major players in the development process. REGIONAL FACTS v Some two-thirds or US $6. 6 trillion out of the US $10 trillion American economy is consumer spending. About 40% or that ($3 trillion) is spent on discretionary products and services. v Retail turnover in the EU was almost 2,000 billion in 2001 and the sector’s better than average growth looks set to continue in the future. v Retail trade in Europe employs 15% of the European workforce (3 million firms and 13 million workers). v The Asian economies (excluding Japan) are expected to have 6% growth rates in 2005-06. -13- CONSUMER EXPECTATIONS v Time and quality of life are becoming relatively more important than money; 60% of Americans want to lead a simple life. Product performance was found to be the top purchasing criterion, while environmental features were a close second in a survey conducted by the Alliance for Environmental Innovation in conjunction with SC Johnson Wax. CHARACTERISTICS OF RETAILING Retailing can be distinguished in various ways from other businesses such as manufacturing. Retailing differs from manufacturing in the following ways: v There is direct end-use r interaction in retailing. v In is the only point in the value chain to provide a platform for promotions. v Sales at the retail level are generally in smaller unit sizes. Location is a critical factor in retail business. v In most retail businesses services are as important as core products. v There are a larger number of retail units compared to other members of the value chain. This occurs primarily to meet the requirements of geographical coverage and population density. Direct Interaction with Customers Retail businesses have a direct interaction with end-users of goods or services in the value chain. They act as intermediaries between end-users and suppliers such as wholesalers or manufacturers. Therefore, they are in a position to effectively communicate the response and changing preferences of the consumers to the suppliers or sales persons of the company. This helps the manufacturers and markets to redefine their product and change the components of its marketing strategy accordingly. Manufacturers require a strong retail network both for reach of the product and to obtain a powerful platform for promotions and point-of-purchase advertising. Realizing the importance of retailing in the entire value chain, many manufacturers have entered into retail business by setting up exclusive stores for their brands. This has not only provided direct contact with customers, but has also acted as advertisement for the companies and has provided -14- the manufacturers with bargaining power with respect to other retailers who stocked their product. Retailing provides extensive sales people support for products which are information intensive, such as in the case or consumer durables. Lower Average Amount of Sales Transaction The average amount of sales transaction at retail point is much less in comparison to the other partners in the value chain. Many consumers buy products in small quantities for household consumption. Due to lower disposable incomes, some consumer segments in India even buy grocery items on a daily basis rather than a weekly or a monthly basis. Inventory management becomes a challenge for retailers as a result of the many minor transactions with a large number of customers. Hence, retailers must take care of determining average levels of stock, order levels and the retailer has to keep a tight control on costs associated with each transaction in the selling process. Credit verification, employment of personnel, value-added activities like bagging, gift-wrapping and promotional incentives all add up to the costs. One way to resolve this is for the retail outlets to be able to attract the maximum possible number of shoppers. Point-of-purchase Display and Promotions A significant relevant chunk of retail sales comes from unplanned or impulse purchases. Studies have shown that shoppers often do not carry a fixed shopping list and pick up merchandise based on impulsive or situational appeal. Many do not look at ads before shopping. Since a lot of retail products are low involvement in nature, impulse purchases of the shopper is a vital area that every retailer must tap into. Therefore, display, point-of-purchase merchandise, store layou8t and catalogues become important. Impulse goods like chocolates, snack foods and magazines can sell much more quickly if they are placed in a high visibility and high traffic location. Larger Number of Retail Business Units Location of retail store plays an important role compared to other business units. Manufacturers decide the location on the basis of availability of factors of productions -15- and market. Similarly, retailers consider factors like potential demand, supply of merchandise and store image-related factors in locating the retail outlet. The number of operation units in retail is the highest compared to other constituents ot the value chain, primarily to meet the needs for geographic reach and customer accessibility. THEORIES AND MODELS OF RETAILING 1. DIALECTIC PROCESS: – An evolutionary theory based on the premise that retail institutions evolve. The theory suggests that new retail formats emerge by adopting characteristics from other forms of retailers in much the same way that a child is the product of the pooled genes of two different individuals. 2. GRAVITY MODEL: – A theory about the structure of market areas. The model states that the volume of purchases by consumers and the frequency of trips to the outlets are a function of the size of the store and the distance between the store and the origin of the shopping trip. 3. RETAIL ACCORDION THEORY:- A theory of retail institutional changes that suggests that retail institutions go from outlets with wide assortments to specialized, narrow, line store merchants and then back again to the more general, wide-assortment institution. It is also referred to as the generalspecific-general theory. 4. RETAIL LIFECYCLE THEORY:-A theory of retail competition that states that retailing institutions, like the products they distribute, pass through and identifiable cycle. This cycle can be partitioned into four distinct stages: i. Innovation, ii. Accelerated development, iii. Maturity, and iv. Decline. 5. WHEEL OF RETAILING THEORY: – A theory of retail institutional changes that explains retail evolution with an institutional life cycle concept. 6. NATURAL SELECTION THEORY: – A theory of retail institutional changes that states that retailing institutions that an most effectively adapt to environmental changes are the ones that are most likely to prosper or survive. -16- 7. CENTRAL PLACE THEORY: – A model that ranks communities according to the assortment of goods available in each. At the bottom of the hierarch are communities that represent the smallest central places (centres of commerce). They provide the basic necessities of life. Further up the hierarchy are the larger central places, which carry all goods and services, found in lower-order central places plus more specialized ones that are not necessary. FUNCTIONS OF RETAILING Retailers play a significant role as a conduit between manufacturers, wholesalers, suppliers and consumers. In this context, they perform various functions like sorting, breaking bulk, holding stock, as a channel of communication, storage, advertising and certain additional services. SORTIONG Manufacturers usually make one or a variety of products and would like to sell their entire inventory to a few buyers to redu7ce costs. Final consumers, in contrast, prefer a large variety of goods and services to choose from and usually buy them in small quantities. Retailers are able to balance the demands of both sides, by collection an assortment of goods from different sources, buying them in sufficiently large quantities and selling them to consumers in small units. The above process is referred to as the sorting process. Through this process, retailers undertake activities and perform functions that add to the value of the products and services sold to the consumer. Supermarkets in the US offer, on and average, 15,000 different items from 500 companies. Customers are able to choose from a wide range of designs, sizes and brands from just one location. If each manufacturer had a separate store for its own products, customers would have to visit several stores to complete their shopping. While all retailers offer an assortment, they specialize in types of assortment offered and the market to which the offering is made. Westside provides clothing and accessories, while a chain like Nilgiris specializes in food and bakery items. Shoppers’ Stop targets the elite urban class, while Pantaloons is targeted at the middle class. -17- BREAKING BULK Breaking bulk is another function performed by retailing. The word retailing is derived from the French word retailler, meaning ‘to cut a piece off’. To reduce transportation costs, manufacturers and wholesalers typically ship large cartons of the product, which are then tailored by the retailers into smaller quantities to meet individual consumption needs. HOLDING STOCK Retailers also offer the service of holding stock for the manufacturers. Retailers maintain an inventory that allows for instant availability of the product to the consumers. It helps to keep prices stable and enables the manufacturer to regulate production. Consumers can keep a small stock of products at home as they know that this can be replenished by the retailer and can save on inventory carrying costs. ADDITIONAL SERVICES Retailers ease the change in ownership of merchandise by providing services that make it convenient to buy and use products. Providing product guarantees, after-sales service and dealing with consumer complaints are some of the services that add value to the actual product at the retailers’ end. Retailers also offer credit and hire-purchase facilities to the customers to enable them to buy a product now and pay foe it later. Retailers fill orders, promptly process, deliver and install products. Salespeople are also employed by retailers to answer queries and provide additional information about the displayed products. The display itself allows the consumer to see and test products before actual purchase. Retail essentially completes transactions with customers. CHANNEL OF COMMUNICATION Retailers also act as the channel of communication and information between the wholesalers or suppliers and the consumers. From advertisements, salespeople -18- and display, shoppers learn about the characteristics and features of a product or services offered. Manufacturers, in their turn, learn of sales forecasts, delivery delays, and customer complaints. The manufacturer can then modify defective or unsatisfactory merchandise and services. TRANSPORT AND ADVERTISING FUNCTIONS Small manufacturers can use retailers to provide assistance with transport, storage, advertising and pre-payment of merchandise. This also works the other way round in case the number of retailers is small. The number of functions performed by a particular retailer has a direct relation to the percentage and volume of sales needed to cover both their costs and profits. As a result of these functions, retailers are required to perform the following activities: ACTIVITIES PERFORMED BY RETAILERS Retailers undertake various business activities and perform functions that add value to the offerings they make to their target segments. Retailers provide convenient location, stock and appropriate mix of merchandise in suitable packages in accordance with the needs of customers. The four major activities carried out by retailers are: 1. Arrange for assortment of offerings 2. Breaking quantity 3. Holding stock 4. Extending services ARRANGING ASSORTMENT An assortment is a retailer’s selection of merchandise. It includes both the depth and breadth of products carried. Retailers have to select the combination of assortments from various categories. The assortments must include substitutable items of multiple brands and price points. They should be distinguished on account of physical dimensions and attributes e. g. , colour or flavour. The small retailer takes assortment decision on the basis of his experience; -19- on the other hand retailers from organized retailing depend on a detailed study of past trends and future projections. Retailers need to consider certain factors while devising assortment plans for their stores: profitability associated with particular merchandise mix, store image, layout and the level of compatibility between the existing merchandise. For example, FoodWorld, a leading food supermarket positioned as a one-stop shopping centre, deals in multiple product categories along with all possible variants of brands, stock keeping units, and physical attributes in order to meet the expectations of their consumers and survive in the business. Whereas, Subhiksha, a grocery chain in south India has impressive assortments of only the fast moving brands rather than all available variants in the market. Their assortment plan is governed by location, size and store image of their stores. BREAKING BULK Breaking bulk means physical repackaging of the products by retailers in small unit sizes according to customer’s convenience and stocking requirements. Normally, retailers receive large quantities of sacks and cases of merchandise from suppliers to reduce their transportation costs. In order to meet their customers’ requirements retailers have to break or arrange the bulk into convenient units. This entire function of the retailers adds value to the offerings not only for the end customers but also for the suppliers in the value chain. Even in the earlier days of generic and commodity-based trading most of the retailers used to perform this important function in the value chain. This function receives negligible attention from the retailers now due the introduction of new product categories, such as FMCG and readyto-wear apparel. HOLDING STOCK To ensure the regular availability of the offerings retailers maintain appropriate levels of inventory. Consumers normally depend on the retailers directly to replenish their stocks at home. Therefore, retailers, on periodic basis, maintain the required levels of stock to meet the regular or seasonal fluctuations in the demand. Retailers need to maintain equilibrium between the range or variety carried and the sales which it gives rise to. Retailers have to face the negative consequences of holding unwanted levels of stock—for instance, too little stock -20- ill hamper the sales volume, whereas, too much stock will increase the retailer’s cost of operation. Generally, in small towns of India most retailers have arrangements with the nearby warehouses to stock the goods. Some are so small that they have to stock only on the shop floor. Retailers in the organized sector, to a certain extent, are using effective software packages for maintaining adequate leve ls of inventory. At the same time, retailers avail of just-in-time deliveries with the help of efficient consumer response systems, which reduces the burden of maintaining high levels of stocks. EXTENDING SERVICES Retailing provides multiple services to immediate customers and other members of the value chain. The set of services extended by particular retailers may be part of their core product offerings or it may be ‘add on’ to their product or service. Retailers offer credit, home delivery, after-sales services and information regarding new products to their customers, thereby making the shopping experience convenient and enjoyable. At the same time, they provide stocking place, reach to the ultimate customers, and information about the oncerned target segment to the suppliers. For example, Time Zone, the first organized retail chain of wristwatches in India, started by leading watch manufacturers Titan, set up in all its stores, service centres with proper equipment and trained manpower. This has not only diluted the relevance of service providers in the unorganized sector but has also enhanced the confidence of the customers in the retai9l services provided by the particular retail chain, as after-sales service is considered to be an integral ingredient of the watch purchase. CATEGORIZING RETAILERS Categorizing retailers helps in understanding the competition and the frequent chandes that occur in retailing. There is no universally accepted method of classifying a retail outlet, although many categorization schemes have been proposed. Some of these include classifying on the basis of v Number of outlets v Margin Vs Turnover v Location v Size. -21- The number of outlets operated by a retailer can have a significant impact on the competitiveness of a retail firm. Generally, a greater number of outlets add strength to the firm because it is able to spread fixed costs, such as advertising and managers’ salaries, over a greater number of stores in addition to acquiring economies of purchase. While any retailer operating more than one store can be technically classified as a chain owner, for practical purposes a chain store refers to a retail firm which has more than 11 units. In the United States, for example, chain stores account for nearly 95% of general merchandise stores. Small chains can use economies of scale while tailoring merchandise to local needs. Big chains operating on a national scale can save costs by a centralized system of buying and accounting. A chain store could have either a standard stock list ensuring that the same merchandise is stocked in every retail outlet or an optional stock list giving the outlets the advantage of changing the merchandise according to customer needs in the area. Because of their size, chain stores are often channel captains of the marketing channel—captains can influence other channel partners, such as wholesalers, to carry out activities they might not otherwise engage in, such as extended payment terms and special package sizes. Big stores focus on large markets where their customers live and work. They use technology to learn more about their customers and target them with point-of-sale machines interactive kiosks, and sophisticated forecasting and inventory systems. They tend to stock a narrow range of inventory that sells well and maintain an extensive inventory of the fast selling products. Branding is important to them. Pricing is often a key area of focus for these retailers. Big stores have many strengths, including regional or national reputation, huge buying power, vast inventory and hassle-free return and exchange policies. Their prime locations, the consistency in their products and services, the fact that they are open when people can and want to shop and the clear consistent image and identity they develop and maintain challenge the abilities and resources of many small retailers. Perhaps their biggest advantage is their knowledge in every aspect of their business, from inventory selection to store layout. However, large retailers are not perfect. They have competitive weaknesses that small retailers can exploit. Most offer the same standardized assortments of products nationally. Local managers have little say in inventory selection. Often, sales staff has minimal product knowledge. Staff turnover is extremely high. Most large retailers have little connection with -22- the community they serve. They usually do not offer special services. Larger companies are often slow to recognize and react to changes in their local markets. Independent retailers can co-exist and flourish in the shadow of the big chains by developing a niche within the diverse market. The niche should be developed on the basis of new or unusual product offerings, superior service and overall quality. While value is important, price may be less important. Efficient operations, including precise buying practices, are a must. Customer contact within the niche market must be characterized by ‘high-touch’ service. The key factor is innovation: stores that do not change will perish. The road to success for the independent retailer lies in doing all the things those big chain stores can not or will not do. The successful independent retailers embrace the following principles: v Be prepared for change. v Move to a narrower niche market and stop competing directly with the big retailers. v Learn more about customers and include best customers in a database. Invest appropriately in advertising and promotion. v Charge regular prices and avoid discounting (ensure requisite mark-up). v Buy with precision and search out speciality suppliers. v Maintain essential inventory. v Focus on profit instead of volume (be ready to lose an occasional sale). v Provide extraordinary service. v Employ the best possible staff. v Understand the signi ficance of the Internet. Gross margin and inventory turnover is another means of classifying retailers. Gross margin is net sales minus the cost of goods sold and gross margin percentage is the return on sales. A 30% margin implies that a retailer generates Rs 30 for every Rs 100 sales that can be used to pay operating expenses. Inventory turnover refers to the number of times per year, on average, a retailer sells his inventory. On the basis of this, retailers are classified as low margin low turnover—those that cannot survive the competition—and low margin high turnover, exemplified by Amazon. com. Jewellery stores and appliance stores are examples of high margin low turnover stores and only a few retailers achieve high margin high turnover. These -23- etailers are in the best position to combat competition because their high turnover allows them to withstand price wars. The drawback of the classification by this method is that service retailers who have no inventory turnover cannot be encompassed. One of the old means of classification of retailers is by location, generally within a metropolitan area. Retailers are no longer satisfied with traditional locations within a cit y’s business district but are on the constant lookout for alternate locations to reach customers. Besides renovating old stores, retailers are testing unorthodox locations to expand their clientele. With the advent of the Internet, this area of retailing is likely to undergo tremendous changes in the coming years. Size is often used as a yardstick to classify retailers because costs often differ on the basis of size, with big retailers having lower operational costs per dollar than smaller players. However, in this sphere too, the Internet may make size an obsolete method of comparison. TRENDS IN RETAIL FORMATS Retail industry is continuously going through changes on account of liberalization, globalization and consumer preferences. While multinational retail chains are looking for new markets, manufacturers are identifying, redefining, or evolving new retail formats. The existing retail houses are also gearing up to face the emerging competition from the organized sector and the changing outlook of the consumers. For example, consumer spending is shifting from goods to services. Accordingly the retailers too are fast adjusting to the changing consumer preferences. Consumers are not only looking for the core products or functional benefits from the retailers but also the non-functional benefits, which need to be compatible with their lifestyles. For example, most of the traditional eating joints in India such as Haldiram, Bikaner and Sagar Ratna have revised their product offerings and atmospherics on the lines of the multinational chains to compete with them and to serve changed expectations of the consumers. Mom-and-pop Stores and Traditional Kirana Stores The retail sector is changing as new store categories have started dominating the marketplace. Mass merchandisers (Wal-Mart, Big Bazaar), discount clubs (Subhiksha), -24- so-called category killers (Home Depot, Vishal chain), and speciality retailers (Time Zone, Tanishq) have all developed a successful retail models. At the same time, the small mom-and-pop stores and the traditional department stores, are finding the competition intense. In 2002, while Wal-Mart and Target saw revenues grow (by 12% and 10%, respectively), department stores such as Saks and Federated experienced declining revenues (down 3% and 1% respectively). But even in the mass-merchandising segment, the competition is fierce, as is evidenced by Kmart’s bankruptcy announcement in 2002. Small independent stores, across product categories, is a very common retail formats they are also undertaking large scale renovations to appeal and attract their target consumer segments. E-commerce The amount of retail business being conducted on the Internet is growing every year. Indeed, Forrester Research Agency projects e-commerce revenue to rise to $123 billion in 2004, an increase of some 28% over the previous year and for e-tailing to comprise a bigger slice of the overall retail pie (5. 6%, up from 4. 5% in 2003). Many major retail organizations and manufacturers have online retail stores. Companies like Amazon. com and First and second. com, which helped pioneer the retail e-commerce concept, are now being followed by bricks-and-mortar and catalogue retailers like J. Crew, which are expanding retail e-commerce into new markets. Department Stores A few years ago, names like Sears, J. C. Penney, Macy’s, and Montgomery Ward dominated malls and downtowns all over America. Over the last decade or so, however, these department stores have suffered badly. In part, this is a result of changing shopping patterns and increased competition from discount stores. It has also come from financial burdens incurred by companies that acquired competing companies and grew too fast. It is unlikely that these players will disappear from the market. However, they should be ready to expect more bumps as the strong get stronger and the weak get absorbed. -25- Discount Stores These are giants such as Wal-Mart (the largest retailer in the world, with more than a million; employees), Target and Kmart, as well as membership warehouses, such as Costco. These, along with the category killers, have changed the landscape of both the retail industry and America. Where once mom-and-pop and department stores dominated retail, now the discount retailers and category killers are at the top of the heap. And where once shopping malls, anchored by at least one major department store, ;used to be the dominant retail presence lining the nation’s roads, now it is the behemoth Wal-Marts and Home Depots. Category Killers These are the giant retailers that dominate one area of merchandise (e. g. , Office Depot, Tower Records and The Sports Authority). They are able to buy bathroom tiles, file cabinets, electronic goods or pet food in such huge volumes that they can then sell them at prices even fairly large competitors cannot match. The future of this category is better than that of many of the more general discounters, but the same employment caveats apply. For most job seekers, these companies offer earn-and-learn experiences with vendors and distributors before they move onward and upward. Speciality Stores These include Crate & Barrel, the Body Shop, and Victoria’s Secret. These stores concentrate on one type of merchandise and offer it in a manner that makes it special. Some are very high-end (Louis Vuitton) while others cater to the price-conscious masses (Old Navy). Many are so successful that department stores have started to emulate their buying, marketing, and merchandise display strategies. Industry experts predict growth in this segment, particularly in home furnishings and home improvement, and it seems to attract many of the best and brightest in retail. Promotion and responsibility come quickly to those willing to work hard, and in many of these stores the hand of bureaucracy is not heavy. -26- E-tailers While most retailers have online storefronts, strictly online purveyors with no bricksand-mortar counterparts are hoping to snare a percentage of the retail profit. Major players, such as Amazon. com, have generated enough business to cause top brick-andmortar competitors to come up with their own Internet sites. Traditional retailers like Wal-Mart and Starbucks, hugely successful in their own right, have also set up online stores so as not to miss out on the revenue opportunities that the Interned offers. -27- BARISTA Barista positioned its outlets as a place where people meet each other in an environment, which fulfills both their social and intellectual needs. The music is not too loud and encourages conversation, and the person behind the counter is non-intrusive and friendly. Any consumer knows that even when it is crowded at Barista, you will have your share of privacy. This is because the other consumer is not listening in; he is too involved in himself. MARGIN FREE MARKETS Margin Free Markets is the largest retail chain in the state of Kerala and one of the leading retail chains in India. The first outlet of this chain started functioning on 26 January 1994 at Thiruvananthapuram. There are currently more than 275 franchisees of Margin Free Markets spread all over south India. The outlets are franchises and are not actually owned by the chain. The Consumer Protection and Guidance Society currently control Margin Free Markets, which is registered charitable institution that started functioning in 1993. The consumers are assured of quality, quantity and fair price of the goods sold through the Margin Free Markets. Any retailer can upgrade his shop to a Margin Free outlet by sending in an application to the society. If his application is accepted, he has to make the necessary investment as required. These shops deal in the enter gamut of foods required by a home for its monthly onsumption, grocery, food and non-food FMCG items, fruits and vegetables, consumer goods and household articles. Margin Free outlets are typical discount stores, offering one-stop-shop convenience and self service facility at significant discount to its customers. Most of these customers, in time, turn out to be its permanents customers by taking discounts cards, which permit them to obtain larger discounts than the non-card holders. The necessity to o ffer protection against the rising prices gave birth to the idea of Margin Free Markets. An enthusiastic entrepreneur, named Mr N. Ravikumar, conceived the idea. The idea turned out to be an instant success in Kerala especially because Kerala is more of, a ‘consumer’ state than a ‘producing’ state Kerala depends on her neighbouring states for her consumer needs. Due to the large number of intermediaries involved and the transportation costs, the prices are high and there is a wide fluctuation in the prices of groceries, fruits and vegetables. -28- RETAIL ORGANIZATION The term retail organization refers to the basic format or structure of a retail business designed to cater to the needs of the end customer. Recently, some scholars have started referring to India as a nation of shopkeepers. This epithet has its roots in the huge number of retail enterprises in India, which were over 12 million in 2003. About 78% of these are small family businesses utilizing only household labour. Retail firms may ;be independently owned, parts of a retail chain, operated as a franchisee, leased departments, owned by manufacturers or wholesalers, consumersowned or co-operative society. A retail unit could be owned by: v Manufacturer (e. g. , company owned retail outlets) v Wholesaler (e. g. Vastra outlet in Rajouri in New Delhi) v Independent retailer (Chanakya Sweet Shop near Hazratganj in Lucknow) v Consumer (consumer owned grocery stores in man y residential societies) v Co-operative society (e. g. , Mother Dairy milk booths in Delhi) v Government (e. g. , Cottage Emporia) v Ownership shared among franchiser and franchisee (e. g. , Archies Gallery) Although most Indian retailers fall in the category o f small-scale units, there are also some very big retailers. Organized retail stores are generally characterized by large, professionally managed store formats providing goods and services hat appeal to customers, in an ambience that is conducive for shopping and provides a memorable experience to customers. From positioning and operating perspectives, each ownership format serves a marketplace niche and presents certain advantages and disadvantages. Retail executives must not lose sight of this in playing up their strengths and working around their weaknesses. THE CHANGING STRUCTURE OF RETAILING All dynamic developments in retailing, from the birth of departmental stores in the last century to the recent emergence of warehouse clubs and hypermarkets, have been -29- responses to a changing environment. Changing customer demand, new technologies, intense competition, and social changes create new opportunities even as they shake up existing business. The retail business formats have been changing very fast mainly due to technological influences. The Internet and the Web technologies have created a myriad f opportunities for the Web-based business model of retailing. This has created a competition for the retailer with its own self. Besides, the challenge for the retailer now is to keep abreast of these latest formats in order to maintain and grow its share of market and compete within its band of retailers. A key impact of technology has been provision ;of greater information to the customer. Hence, a big challenge for the retailer in the information savvy world of today is that the opportunities for price differentiate itself qualitatively by superior customer services or better value for money to the customer. CLASSIFICATION OF RETAIL UNITS Conceptual classification of a business unit provides the marketers with strategic guidelines, useful in the design of retailing strategy. Besides, retail businesses are extremely diverse and there are quite a few types of retail units. Therefore, retail units are classified on multiple of ownership, geographical locations, kind of customer interaction level of services provided etc. Retailers Classified on the Basis of Ownership One of the first decisions that the retailer has to make as a business owner is how the company should be structured. This decision is likely to have long-term implications, so it is important to consult with an accountant and attorney to help one select preferred ownership structure. There are four basic legal forms of ownership for retailers: 1. Sole proprietorship: – The vast majority of small businesses start out as sole proprietorships. These firms are owned by one person, usually the individual who has the day-to-day responsibility for running the business. -30- 2. Partnership: – A partnership is a common format in India for carrying out business activities (particularly trading) on a small or medium scale. In a partnership, two or more people share ownership of a single business. 3. Joint venture: – A joint venture is not well defined in the law. Unless incorporated or established as a firm as evidenced by a deed, joint ventures may be taxed like association of persons, sometimes at maximum marginal rates. It acts like a general partnership, but is clearly for a limited period of time or a single project. 4. Limited liability Company (public and private):- The Limited Liability Company (LLC) is a relatively new type of hybrid business structure that is now permissible in most states. The owners are members, and the duration of the LLC is usually determined when the organization papers are filed. Classification of Retailers on the basis of Operational Structure Retail businesses are classified on the basis of their operational and organizational structure. Operational structure defines the key strategic decision of retail entity, whether to hire employees and manage the distributed sales function internally or to reach customers though franchised outlets owned and operated by local entrepreneurs. Retail firms can be classified into five heads on the basis of their respective operational structures: 1. Independent retail unit: – The total number of retailers in India is estimated to be over 5 million in 2003. About 78% of these are small family businesses utilizing only household labour. An independent retailer owns one retail unit. 2. Retail Chain: – A chain etailer operates multiple outlets (store units) under common ownership; it usually engages in some level of centralized (or coordinated) purchasing and decision making. 3. Franchising: – Franchising involves a contractual arrangement between a franchiser (which may be a manufacturer, a wholesaler, or a service sponsor) and a retail franchisee, which allows the franchisee to conduct a -31- given form of business under and establishments name and according to a given pattern of business. 4. Leased Department or Shop-in-shop:-It refers to department in a retail store that are rented to an outside party. Usually this is done in case of department and speciality stores and also at times, in discount stores. 5. Co-operative Outlets: – Co-operative outlets are generally owned and managed by co-operative societies. In this context the detailed example of Kendriya Bhandar in India. Classification of Retailers on the basis or Retail Location Retailers have also been also been classified according to their store location. Retailers can locate their stores in an isolated place and attract the customers to the store on their own strength—such as a small grocery store or paan shop in a colony, which attracts the customers staying close by. Classification of retailers on the basis of location is discussed below: 1. Retailers in a free-standing location:- Retailers located at a site which is not connected to other retailers depend entirely on their sore’s drawing power and on the various promotional tools to attract customers. This type of location has several advantages including no competition, low rent, better visibility from the road, easy parking and lower property costs. For example the Haldiram’s outlet on the DelhiJaipur highway and the McDonald’s outlet on Delhi-Ludhiana highway. 2. Retailers in a Business-associated Location:-In this case, a retailer locates his store in a place where a group o retail outlets, offering a variety of merchandise, work together to attract customers to their retail area, and also compete against each other for the same customers. 3. Retailers in Specialized Markets: – Besides the above location-based classification, we also have in India-retailers who prefer specialized markets, particularly traditional independent retailers or chain stores. -32- In India, most of the cities have specialized markets famous for a particular product category. For example, in Chennai, Godown Street is famous for clothes, Bunder treet for stationery products, Usman street for jewellery, T Nagar for ready-made garments, Govindappan naicleen street for grocery, Poo Kadia for food and vegetables. 4. Airport Retailing: – For quite some time, duty-free shops and newsstands dominated the small amount of commercial space provided at airports. Lately, serious efforts are being made to design new airport facilities in order to incorporate substantial amounts of retail space. The key features of airport retailing are: v Large groups of prospective shoppers v Captive audience v Strong sales per square foot of retail space v Strong sales of gift and travel items v Difficulty in replenishment v Longer operating hours v Duty-free shopping possible. ` -33- VARIETY OF MERCHANDISE MIX The retail merchandising has come a long way in India since the days when general stores (kirana) that stocked everything from groceries to stationery and small shops that sold limited varieties of products (such as clothes, furniture, medicines) reigned supreme. There are many different retail stores in India—convenience stores, supermarkets, hypermarkets, department stores, brand stores and discount stores characterized by the variety of merchandise mix offered by a respective retail format. The consumer can choose between different stores for different needs. Retail units, on account of variety of merchandise mix, can be classified as follows: . Department Stores: – It is a large retail store organized into a number of departments, offering a broad variety and depth of merchandise, commonly part of a retail chain. Usually, department stores are located within the planned shopping centres or traditional up market downtown centres. The leading fashion department stores in India are Ebony, Globus, LifeStyle, Pantaloon, Shoppers’ Stop and Westside. All of them are multiproduct stores, Ebony has 7 stores, Globus has 4 stores, LifeStyle has 3 stores and there are 12 Pantaloon Family Stores. Discount Stores: – Retailers offering a broad variety of merchandise mix, limited or no service and low prices are characterized by low margins, heavy advertising, low investments on fixtures, limited support from sales people etc. Discount stores prefer shopping centres that provide space at lower rents as they attract customers from other adjoining stores in the shopping centre. Speciality Stores: – Speciality stores stress on one or a limited number of complementary product categories and extend a high level of service to their customers. In India, the traditionally independent retailers in the specialized market centres operate in a particular product category, at these centres attract large crowds. Such specialized retail operations provide expertise economies of scale, bargain and image to the particular stores. Supermarkets and Hypermarkets:- A hypermarket is a very large retail unit offering merchandise at low prices. Superstores have a sales area of over 50,000sq. ft. Hypermarkets are characterized by large store size, low operating costs and margins, low prices and comprehensive range of merchandise. -34- RETAIL IN INDIA The retail industry in India is largely unorganized and predominantly consists of small, independent, owner-managed shops. Retailing is India’s largest industry in terms of contribution to GDP and constitutes 13% of the GDP (Gross Domestic Product). There are around 5 million retail outlets in India. There are also an unaccounted number of low cost Kiosks (tea stalls, snack centres, barber shops) and pushcarts mobile vendors. Total retail sales area in India was estimated at 328 million sq. mt. in 2001, with an average selling space of 29. 4 sq. mt. per outlet. In India, the per capita retailing space is about 2 sq. ft. , which is quite low in comparison to the developed economies. In 2000, the global management consultancy AT Kearney put retail trade at Rs 400,000 crore, which is expected to increase to Rs 800,000 crore by the year 2005—an annual increase of 20%. According to a survey by AT Kearney, an overwhelming proportion of the Rs 400,000 crore retail markets is unorganized. In fact, only a Rs 20,000 crore segment of the market is organized. There is no integrated supply chain management outlook in the Indian traditional retail industry. Food sales constitute a high proportion of the total retail sales. The share was 62. 7% in 2001, worth approximately Rs 7,039. 2 billion, while non-food sales were worth Rs4189. 5billion. However, the non-food retailing sector registered faster year-on-year growth than the food sales sector. The trend to market private labels by a specific retail store is catching on in India as it helps to improve margins. The turnover from private labels by major retail chains was estimated at around Rs 1200 million in 2000. Growth in retail outlets (millions) Year 1978 1984 1990 1996 Urban 0. 58 0. 75 0. 94 1. 80 Rural 1. 76 2. 02 2. 42 3. 33 Total 2. 35 2. 77 3. 36 5. 13 Source: indiainfoline -35- Composition of urban outlets Retail Outlet Grocers Cosmetic stores Chemist Food stores General stores Tobacco, pan stores others Source: indiainfoline Composition 34. 7% 4. % 6. 3% 6. 6% 14. 4% 17. 0% 17. 0% Composition of rural outlets Retail Outlet Grocers Composition 55. 6% General stores 13. 5% Chemists Others 3. 3% 27. 6% Source: Indiainfoline EMERGENCE OF ORGANIZED RETAILING Organized retailing in India repres