Public Perception of Female Offenders Essay Example | Topics and Well Written Essays - 5250 words

Public Perception of Female Offenders - Essay Example It tries to focus on the differences of opinion amongst male and female respondents. They are a very small majority, only 14% of the total convicted and most of them are in the prison for a very short term. Usually their offences are trivial; but this does not mean that there are no serious offenders. Sometimes imprisonment begins as early as at 16. Roughly almost half of the accused women get convicted eventually. There had been a steady increase in the numbers of female offenders in Scotland in recent years thought compared to the raise in overall numbers, the situation is improving. There had been unfortunate incidents like suicide plaguing the prisons for sometime now. The suicide in 1997, of a convicted female prisoner in HM Institution Cornton Vale, seventh of its kind, focussed the public mind slightly more on the plight of female prisoners. The recent deaths, all by hanging are given below: This is apart from incidents of unsuccessful self-harming which would have been fatal, but for the quick prison staff intervention. Many studies have emerged pointing out the importance of understanding social, personal, psychological backgrounds, range and availability of pre and post-sentence community disposals, further help and support, appropriate custodial arrangements and the improvement on all these measures. Women who offend have some kind of unfortunate background and mostly have a cause too. No doubt, women who commit heinous crimes cannot be permitted to take into streets and have to be convicted. But most of the offenders would have committed petty crimes and imprisoning them will have disastrous effects on their families, children and dependents. They could be mothers, less educated school dropouts without work beyond home. They could be facing accommodation problems and might have been victims of some kind of abuse. Also they could be drug addicts, binge drinkers, pro stitutes or going through psychological distress. Usually they come from unsupportive and chaotic households. It is important to know more about this unfortunate segment of the society and compare the research with real statistics. It is important that Scottish executive claims that the number of female offenders has dropped in recent years. http://www.scotland.gov.uk/library3/law/wosw-09.asp METHODS AND DESIGN This report is from the male and female perspective and apart from this, also answers three important questions. It presents the necessary charts in support of the research done. The target group number is 76 and research was conducted by six researchers with the aid of appropriate questionnaire, especially for the opinion difference between the genders. It is a cross-sectional survey design with the questionnaire support as primary method of

Ozone layer depletion Essay Example for Free

Ozone layer depletion Essay The increased cancer levels caused by exposure to this ultraviolet light could be enormous. Recent studies estimates that 60 million Americans born by the year 2075 will get skin cancer because of ozone depletion. About one million of these people will die. In addition to cancer, some research shows that a decreased ozone layer will increase rates of malaria and other infectious diseases. According to recent studies 17 million more cases of cataracts can also be expected. . The environment will also be negatively affected by ozone depletion. The life cycles of plants will change, disrupting the food chain. Effects on animals will also be severe, and are very difficult to foresee. Oceans will be hit hard as well. The most basic organisms such as plankton may not be able to survive. If that happened, it would mean that all of the other animals that are above plankton in the food chain would also die out. Other ecosystems such as forests and deserts will also be harmed. The planets climate could also be affected by depletion of the ozone layer. Wind patterns could change, resulting in climatic changes throughout the world. Global warming is the continuing rise in the average temperature of Earths atmosphere and oceans. Global warming is caused by increased concentrations of green house gases in the atmosphere, resulting from human activities such as deforestation and burning of fossil fuels. Some of the effects of global warming and climate change on the environment include the folloing

Essay --

Q 1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Food, Inc Solution: SEC has a significant influence on the audit of Smackey Dog Food, Inc because it sets certain auditing standards that need to be adhered to while conducting and audit of any organization. One of the standards is ensuring a professional independence of auditors as they carry out their audit. Keller CPA would be more objective in their opinion by maintaining independence in all maters and be free from conflict of interest in performing their professional engagement. Thus, although SEC does not possess direct control over privately held companies like Smackey, it, however, sets up generally accounting principles and disclosure requirements for all auditors to follow in order to prevent fraud and misstatement and to ensure fairness to users of audited financial statements for investment purposes or decision making. Therefore, Keller CPA would be required to follow the six generally accepted auditing standards established by ASB of the AICPA with regards to field work and reporting which were established through the influence of SEC. (Arens, Alvin A., Elder, Randall J., and Beasley 2012 p. 31) Q2: Discuss the essential activities involved in the initial planning of an audit. How do these all specifically relate to Smackey Dog Food client? Solution: Keller CPA would first understand the clients’ industry operations and in particular how the clients’ business functions. This understanding will set the stage for assessing clients’ business risk, risk of significant and material misstatement of the client’s financial positions and the overall audit risk. The four major part of audit planning are: (i) Understanding internal control operatio... ...ble to third parties. Liability under SEC can also arise as well as violation of SAS 99 by not exercising professional skepticism. (Arens, Alvin A., Elder, Randall J., and Beasley. 2012. P. 115-116) REFERENCIES Arens, Alvin A., Elder, Randall J., and Beasley, Mark S. (2012). Auditing and Assurance Services: An integrated Approach. 14th ed. Upper Saddle River: Pearson Hall PCAOB (Public Company Oversight Board), Auditing Standard number 9, audit planning, retrieved 1/22/14 http://pcaobus.org/Standards/Auditing/Pages/Auditing_Standard_9.aspx AICPA (American Institute of CPAs) Section 50, Principles of Professional Conduct, retrieved 1/17/14 http://www.aicpa.org/Research/Standards/CodeofConduct/Pages/et_52.aspx

Efficiency and Inefficiency of The Global Stock Market

The perception of efficiency is middle to economics. First and foremost, the term efficiency is used to explain a market in which pertinent in sequence is confiscate into the price of monetary assets. This is the main focal point of the research appraisal here.Occasionally, though, economists use this word to refer to ready efficiency, highlight the way resources are working to make easy the operation of the market. The majority of this appraisal is concerned by the meaning, that is the informational efficiency of monetary markets. At the end of this research, we also believe the microstructure of monetary markets (Dimson, Elroy 2001, pp. 197-226).2. Practically inefficientNo doubt The efficient procedure of price strength of mind can be contrasted with an incompetent market, in which, according to the hypothesis, the pre-conditions for efficient cost (ideal information, lots of minute market participants) have not been assemble and value may be determined by issue such as insider tr ading, institutional buying power, propaganda, panic and stock market bubbles and further collective cognitive or touching behavioral biases.Generally, the majority of the mature markets, such as those of the North America, West Europe and Japan, are close to the efficient end, as those recently growing markets, such as those in South America, Eastern Europe, Africa and the majority of the Asian area, are closer to the inefficient end, or even subjugated by inefficiency.3. China as a special version footnoting this theory.China's securities market overview.Wang Sen, Li Jingping and Liu Xin from Shanxi University of Finance, China, once conducted a data-analysis, where Shanghai Stock Index used as price moving curve was compared with the payoff curve calculated through the weighted average of stocks' payoffs.An interesting finding was that, even though the Index moved violently, the corresponding payoff level was fairly stable. In another word, it seems that the price movement of a s tock has nothing to do with its immanent value, which is against classic finance theories (Elroy and Massoud Mussavian 2000).Macro-EconomicallyNeedless to say, a country's securities market is far more delicate and sensitive than the overall economy of that country. That could be the reason why the securities market is called the forerunner or the indicator of national or, nowadays, global economy.And that could also be the reason why centralized management in a planned economy won't work for securities market (even if it does for the whole economy for the time being): the system is just too complicated and chaotic to be centrally or planned.All these largely explain one of the weird things in China: the securities market has lost its identity as the indicator for the national economy. For the last twenty years, China's economy has developed at an incredibly fast pace, while its securities market also deteriorates with ridiculously huge downfalls.As shown the charts below, China's e conomy growth rate has been gradually decreasing from as high as 14.2% in 1992 to 7.1%-8% after 1998. However, the stock index as shown below is more like suffering from a crash landing on thin ice. It's radically a different story than the country's economic growth tells.

Lyman Frank Baum

Lyman Frank Baum is an American writer, independent film maker, and actor who was born on May 15, 1856 in Chittenango, New York from a Scottish Irish mother named Cynthia Stanton who is the direct descendant of Thomas Stanton, the founder of the Stonington, Connecticut, and a German father named Benjamin Ward Baum. From 1880 to 1902 he became a newspaper-man and began writing a series of books in which he made an original fairyland, a world of fantastic characters and light-hearted adventures, and the Land of Oz, and from this books, the most famous was the â€Å"The Wonderful Wizard of Oz† written in 1900 (L. Frank Baum, Encarta). Baum wrote 13 sequels, 9 other fantasy novels, 82 short stories, over 200 poems, and many miscellaneous writing, which resulted to numerous attempts to bring back his work to the screen and stage. Because of Baum’s love for theatre, often to his financial detriment, he often support elaborate musicals. Baum adapted the â€Å"The Wonderful Wizard of Oz† as a ‘musical extravaganza’ named The Wizard of Oz in 1901, and before Baum’s death he wrote an additional thirteen more books all about Oz (L. Frank Baum, Encarta). The book became the best selling children’s book after its initial publication in 1900. Baum was originally a Methodist but later he joined the Episcopal Church to be included in community theatrical arts, and later he was encouraged by his wife in 1897 to become a Theosophist. According to records, Baum’s belief is reflected or can be seen in his writings. After Baum’s death in May 6, 1919, several writers continued his series, which resulted to huge volumes. Works Cited â€Å"L. Frank Baum.† 2007.   L. Frank Baum – MSN Encarta, 12 January 2008   

The Prince Niccolo Machiavelli

The Prince Niccolo Machiavelli During the Renaissance, the political situation of Italy consisted of instability, invasion, fear, intrigues, and violence. Several powerful families established their territories and ruled authoritatively. The Prince provided a practical direction to Lorenzo Di Medici to operate in this unstable political environment. According to Machiavelli, the republic was the best form of government as opposed to an authority of the prince.Advertising We will write a custom essay sample on The Prince Niccolo Machiavelli specifically for you for only $16.05 $11/page Learn More Therefore, Machiavelli proposed some advice for a new prince, who wanted to govern a state to prosperity. These pieces of advice would ensure that the prince remained great and powerful. Machiavelli’s work provided practical solutions to Lorenzo in a turbulent political environment. Unfortunately, Lorenzo did not concur with Machiavelli’s suggestions. Machiavelli looks at how an auth oritarian ruler can achieve a great success if he changes his authoritarian style. The Prince offers advice on how Lorenzo can expand the empire, keep people from all territories loyal to him, and conquer new territories. According to Machiavelli, Lorenzo could not afford to repeat past mistakes that divided Italy, and he had to learn to use both good and bad styles when running the kingdom. Machiavelli offers two ideal views on principality: these are how to win and hold power. He notes, â€Å"Either through fortune or through strength†, (Machiavelli 6) are the main ways by which rulers can achieve principalities. This implies that people can only achieve power by overthrowing others or inheriting it from the family. From the Renaissance perspective, Machiavelli showed that moral or ethical issues were not important in a quest for power. When a ruler overthrows another one, wars happen and people die. Thus, Machiavelli showed that killings were appropriate means of gaining p ower. Once a ruler has conquered a territory, he must â€Å"ensure that the previous ruler has no heirs† (Machiavelli 9). In addition, a new ruler must not change existing laws or introduce new taxes. Machiavelli argues that the new ruler should maintain the previous lifestyle people had so that many people can like him. This was the only way for the new ruler to establish hereditary domains. Subjects have the duty to remain loyal to their rulers so that leaders can maintain power. The purposes of maintaining loyal subjects are to help the ruler keep power and join militia and fight for the ruler. However, this raises the issue of how Machiavelli viewed ‘subjects’. According to Machiavelli, rulers only needed subjects to maintain their power and protect their kingdoms. Machiavelli did not foresee moral and ethical issues that his work would raise. However, these issues have been the epitome of The Prince. The work provided practical advice in a politically volati le society. However, both ruthless rulers and business individuals have used Machiavelli’s concepts (Machiavellian) to justify their actions, which view winning as the ultimate goal.Advertising Looking for essay on biography? Let's see if we can help you! Get your first paper with 15% OFF Learn More Machiavelli offered his advice on qualities the prince needed in order to run a new kingdom. He wrote: â€Å"Since a ruler, then, needs to know how to make use of beastly qualities, he should take as his models among the animals both the fox and the lion, for the lion does not know how to avoid traps, and the fox is easily overpowered by the wolves. So you must be a fox when it comes to suspecting a trap, and a lion when it comes to making the wolves turn tail† (Machiavelli 54). This indicates that a ruler should be cunning than his subjects or those who may wish to overthrow him. As a result, the subject shall protect their strong ruler, fear him fo r his strength, and avoid any attempts to kill him. This leads us to the argument of whether it ‘is it better for a Prince to be loved or feared?’ According to Machiavelli, a Prince should be both (Machiavelli 51). However, the challenge is to maintain both love and fear simultaneously. Machiavelli argues for both fear and love because a Prince needs obedience and loyalty from his people and people must fear the Prince because he has the responsibility to control and run the kingdom. Machiavelli notes: â€Å"I conclude, then, that, as far as being loved and feared is concerned, since men decide for themselves whom they love, and rulers decide whom they fear, a wise ruler should rely on the emotion he can control, not on the one he cannot. But he must take care to avoid being hated, as I have said† (Machiavelli 53). Machiavelli supports the use of military to gain power and protect the kingdom. However, he does not support oppression. His views emanate from the no tion that a good military power leads to a good rule of law. He supports this idea by stating, â€Å"The presence of a sound military force indicates the presence of sound laws† (Machiavelli 65). Machiavelli is right to advise the Prince that the subjects’ loyalty is a good defense than a structure a fortress. Machiavelli notes that leaders should have positive public opinions, have support of subjects, and achieve their objectives. The ultimate objective is to unite different states.Advertising We will write a custom essay sample on The Prince Niccolo Machiavelli specifically for you for only $16.05 $11/page Learn More Machiavelli does not encourage leaders to be cruel for personal gains. Instead, he wants leaders to use their power and influence to protect their kingdoms and subjects. Thus, most people have misunderstood Machiavelli’s concept of â€Å"The end justifies the means. This is because Machiavelli believed that rulers coul d use brutality to capture, but will eventually lose their glory. Therefore, he believes that the Prince can only achieve loyalty, obedience, and trust if he does not cruelties on his subjects. However, the concept was justifiable if there were clear objectives to achieve for the benefit of the state. Machiavelli viewed humans as objects of gaining power and using it to maintain power. In addition, human subjects provided numbers for authorities, which were suitable for achieving power and money by using force for the interest of the state. Machiavelli considered human subjects as â€Å"fickle and ungrateful† (Machiavelli 52). The Prince showed that Machiavelli’s main concern was how to run a kingdom rather than moral and ethical issues, which came with such responsibilities. Thus, Lorenzo had not moral or ethical obligation to be correct. However, Machiavelli reflects the raw life of the Renaissance in which States benefited from atrocities. Machiavelli remains a cont roversial figure. He knew that some of his views were not right. For instance, he viewed subjects as objects of acquiring and keeping power, considered people as ungrateful, and raised issues of fear or love among others. From Machiavelli’s point of view, the ruler could apply these techniques during his time of need in order to defend his throne. The true purpose of Machiavelli remains defined as succinct ideals for running a prosperous kingdom in a volatile political situation. Therefore, Machiavelli did not advocate for brutality. It is advisable for a ruler to have advisers in order to manage a kingdom effectively. According to Machiavelli, a good leader had to possess proper skills in order to select good advisers. The works of such competent advisers are to provide competent responses and honest advice to specific issues.Advertising Looking for essay on biography? Let's see if we can help you! Get your first paper with 15% OFF Learn More In addition, such advisers have to put the state first before their self-interests (Machiavelli 22). In return, the prince must reward and honor such characters because of their unshakable services. On the other hand, bad leaders were likely to surround themselves with incompetent people, who only revealed their weaknesses. Private morality and ethics have other factors too, such as personal character, state duties, and divine approvals. However, it is only reactions from humans, which count in real-life situations. This explains why Machiavelli insists that a leader needs to achieve the best reputation among his subjects, and do whatever is appropriate and wrong for the prosperity of the state in a given circumstance. Therefore, rulers must be cunning, generous and must inculcate a reputation of honesty (Machiavelli 18). According to Machiavelli, rulers can disregard moral obligations in affairs of kingdoms. Thus, the only relevant issue is the important outcome for the kingdom. It is suitable for rulers to engage in deceit, murder, and other immoral acts for the benefit of their states. These ideologies of Machiavelli gave rise to the concept of Machiavellian, which implies being â€Å"crude, cunning, and deceitful. This is exactly how Machiavelli thought the new prince should act† (Machiavelli 63). This is why Machiavelli notes that, in the absence of a court of law, one should only rely on the result in order to make a judgment. However, Machiavelli had a strong belief in the need to have a strong ruler so that kingdoms could maintain their power for benefits of subjects rather than for individual interests. Machiavelli, Niccolo. The Prince. Shelbyville, KY: Wasteland Classics, 2011. Print.

Marxs ideas on Class Structur essays

Marx's ideas on Class Structur essays Sociology 1001 Assessment 2 Marx A 250 - word summary of Marxs conception of class (the basic ideas, their strengths and limitations). Marx, as a sociologist, used the idea of class within his work fairly extensively but often assumed the knowledge of his reader when it came to a definition. The lack of an actual definition of class by Marx, when it was so fundamental in much of his work was strange but he did write about the topic fairly extensively. Marx analysed class in relation to the means of production and the ownership of the capital. He looked at class by dividing the population into who owned property and who was propertyless, the capitalists and the proletariat. However class for Marx wasnt simply a division of income or functional positions in the labour force but he saw classes as a social force with the strength to change society. Marx thought that production was so important in the creation of class because it creates a hierarchy. In production, men not only act on nature but also on one another. He believed that classes were created when production involves a division of labour, which allows surplus production that can be appropriated by a minority group. In short I would take this to mean that classes are created on the back of exploitation. Marxs idea of class does have certain limitations in that there are positions within society that would be classless according to it. Although Marx recognised these groups he argued that they would disappear because they were just left overs from the pre capitalist days. However even now, around 100 years on, there would still be a certain number of, apparently, classless people. Also with the great emergence of the service sector within developed, and even developing, countries production, as Marx knew it, has changed extensively. Marxs idea of class do, however show a great significance ...

Resistance and Opposition in the GDR

Resistance and Opposition in the GDR Even though the authoritarian regime of the German Democratic Republic (GDR) lasted for 50 years, there had always been resistance and opposition. In fact, the history of socialist Germany started out with an act of resistance. In 1953, only four years after its creation, the Soviet Occupiers were forced to take back control over the country. In the Uprising of June 17th, thousands of workers and farmers put down their tools in protest of new regulations. In some towns, they violently drove the municipal leaders from their offices and basically ended the local reign of the â€Å"Sozialistische Einheitspartei Deutschlands† (SED), the GDR’s single ruling party. But not for long. In the larger cities, such as Dresden, Leipzig, and East-Berlin, large strikes took place and workers assembled for protest marches. The Government of the GDR even took refuge to the Soviet Headquarters. Then, the Soviet Representatives had enough and sent in the military. The troops quickly suppressed the uprising by brutal force and restored the SED Order. And despite the dawn of the GDR was coined by this civil uprising and despite there always being some kind of opposition, it took more than 20 years, for the Eastern German Opposition to take a clearer form. Years of Opposition The year 1976 turned out to be a crucial one for the opposition in the GDR. A dramatic incident awoke a new wave of resistance. In protest against the atheist education of the country’s youth and their oppression by the SED, a priest took to drastic measures. He set himself on fire and later died of his injuries. His actions forced the protestant church in the GDR to re-evaluate its attitude towards the authoritarian state. The regime’s attempts to play down the priest’s acts triggered even more defiance in the population. Another singular but influential event was the expatriation of the GDR-Songwriter Wolf Biermann. He was very famous and well-liked both German countries, but had been forbidden to perform due to his criticism of the SED and its policies. His lyrics kept being distributed in the underground and he became a central spokesperson for the opposition in the GDR. As he was allowed to play in the Federal Republic of Germany (FRG), the SED took the opportunity to revoke his citizenship. The regime thought that it had gotten rid of a problem, but it was deeply wrong. Numerous other artists voiced their protest in light of the expatriation of Wolf Biermann and were joined by a lot more people from all social classes. In the end, the affair led to an exodus of important artists, heavily damaging the GDR’s cultural life and reputation. Another influential personality of the peaceful resistance was the author Robert Havemann. Being freed from death row by the Soviets in 1945, at first, he was a strong supporter and even a member of the socialist SED. But the longer he lived in the GDR, the more he felt the discrepancy between the SED’s real politics and his personal convictions. He believed, that everyone should have the right to his own educated opinion and proposed a â€Å"democratic socialism†. These views got him expelled from the party and his ongoing opposition brought him a string of intensifying punishments. He was one of the strongest critics of Biermann’s expatriation and on top of criticizing the SED’s version of socialism, he was an integral part of the independent peace movement in the GDR. A Struggle for Freedom, Peace, and the Environment As the Cold War heated up at the beginning of the 1980s, the peace movement grew in both German Republics. In the GDR, this meant not only fighting for peace but also opposing the government. From 1978 on, the regime aimed at completely imbue the society with militarism. Even kindergarten teachers were instructed to educate the children in vigilance and to prepare them for a possible war. The Eastern German peace movement, that now also incorporated the protestant church, joined forces with the environmental and anti-nuclear movement. The common enemy for all of these opposing forces was the SED and its oppressive regime. Sparked by singular events and people, the opposing resistance movement created an atmosphere that paved the way for the peaceful revolution of 1989.

What Is Racism All about Essay Example | Topics and Well Written Essays - 500 words

What Is Racism All about - Essay Example Africans were enslaved and heavily discriminated against during this period. This essay sheds light on the definition of racism and the types of racism. The belief that a specific race is superior to the other in terms of physical appearance, abilities and traits is viewed as racism. The Oxford English Dictionary states that racism is the ‘belief or ideology that members belonging to a certain race have features or certain skills that are specific to a certain race, setting them apart as being superior or inferior to the other race’ (Aarts, Chalker and Weiner 676). This definition is sufficient, however; it does not give a clear definition of what racism generally is. The UN does not give a clear definition of racism however, it defines racial discrimination is defined as: ‘shall mean any distinction, exclusion, restriction, or preference based on race, color, descent, or national or ethnic origin that has the purpose or effect of nullifying or impairing the recognition, enjoyment or exercise, on an equal footing, of human rights and fundamental freedoms in the political, economic, social, cultural or any other fie ld of public life’. (HR-Net Group).

Legacies Essay Example | Topics and Well Written Essays - 500 words

Legacies - Essay Example It wanted to free itself from the United States. This led to a bloody war between these two parties for four years. The Confederacy  was disadvantaged  in this war. This is because the U.S. government had  support  from twenty five  free  states from the north and the borders. They had a tremendously strong population base that helped them to  defeat  the Confederacy. Abraham Lincoln’s Republican Party was against the promotion of slavery into other states that it never existed. The Republicans were victorious in their campaigns. This led seven states to  declare  secession from the U.S. federal government. These states united and formed the Confederacy States of America in 1860. The war began in 1861 after a U.S. military base  was attacked  by Confederate forces.  The U.S. federal government called on other states to  volunteer  their armies to fight back.  Both parties formed strong armies that fought against each other. There was a bloody  war  for four years (the American civil war). After the war, slavery  was brought  to an end. Slaves from the border and other Confederate slaves  were freed  by the state. There were numerous and tireless efforts to  reconstruct  the U.S. All in all, many historians today are of the opinion that the reconstruction was never a  success. It was a complete failure because many issues still remain unresolved.

Should Sharia law have more or less power Research Paper

Should Sharia law have more or less power - Research Paper Example On the other hand, Muslims are of the opinion that Sharia law nurtures humanity, allows individuals attain their potential as well as helps individuals release themselves from the strains of life. This paper will assess of Sharia law should be given more or less power. As seen in the research conducted by Mahmoud (2013), Sharia law should have as minimal power as possible since a great percentage of religious laws do not provide a chance for humanistic values that gives all humans a chance to enjoy equality just like other individuals. Evidently, Sharia law is a good testament of discriminatory practices since it does not give all individuals to enjy equal rights. This explains why even international actors are opposed to the law especially bearing in mind that the law incorporates high levels of discrimination on different persons especially based on their gender. A good example is that of the Sharia law discriminating against the homosexuals (Mahmoud, 2013). With this in question, it is manifest that granting Sharia law more power means that the civil and the safety rights of a group of individuals in the society will be threatened to a great extent. Additionally, any person with contrary beliefs would be indicated to demean the government opera ting under the Sharia law since the law does not appreciate the divergent views of different people in the society. For the case of Britain, it is clear that the society is fighting for a secular Britain due to the constraints that the Sharia law has on its followers (Mahmoud, 2013). With the law having state power in many regions around the globe, it is evident that law will continually seize the achievements of the civil society if the law is given more power. The developments achieved over the years have high chances of being overrun by the Sharia law. A notable example is the rights of

Technical Writing Essay Example | Topics and Well Written Essays - 1000 words - 2

Technical Writing - Essay Example A fire lane is where you should not park. This definition is very poor and inadequate in educating people about safety and driving rules. This is because it can make the intended audience to define all places or spaces where parking is not allowed as a fire lane. This is wrong considering the fact that there are many other places in which parking is not allowed yet they do not qualify to be called fire lane for example pedestrian paths. The definition should indicate where fire lanes are located and their functions. A fire lane refers to a marked lane in a parking space or parking lot that is closer to a structure or building whose function is to allow access of safety equipment to the structure/building or escape route in case of emergency. A crime is a violation of the law. The degree of accuracy of this definition is low and insufficient in explaining what a crime is. This is because not all violations of the law can be regarded as crimes. An example is a breach of contract. This applies to individuals involved and it only qualifies to be called an offence or a wrong. An act can only qualify to be called a crime if it is a wrong against the public. This means it has to be within the parameters of the natural laws of the land. A crime can therefore be defined as a breach of laws or rules for which some authority can prescribe a conviction. Sterilization is the process of sterilizing. This definition is such a poor one and it is very inefficient in explaining what sterilizing means. It is just like saying, â€Å"John is John†, â€Å"a car is a car† instead of explaining who John is, or what a car is. Therefore, the second part of the definition should explain what sterilization actually entails. In this case, it is more scholarly to say that sterilization refers to the removal or killing of all disease-causing organisms from a surface. Activity 11.3 The intended audiences for the explanation of the term consumer are students who are undertaking b usiness studies and the purpose of the definition is to help them understand the position of a consumer in a chain of production and their role in an economy. The term consumer refers to any household or individual that utilizes the goods and/or services produced within an economy. The audience for which the definition of the term depreciation is intended for are senior high school students undertaking business studies and the definition will help them to understand why some assets that have been used are normally sold at a price lower than its initial buying price. By definition, depreciation refers to the decline in the fair value of an asset. The explanation of the term management is intended for students undertaking studies on business administration and this definition will enable them visualize their roles and functions as future managers of various organizations. According to Gomez-Mejia (2008), management refers to the organization and coordination of people and activities o f an organization in accordance to certain policies in order to achieve the organization’s desired goals and objectives. The explanation of the term software is intended for is high school students who are undertaking computer studies and the definition will enable them to understand what enables a computer to perform its various functions and applications. By definition, software refers to a group of computer programs (sequence of instructions) and

Financial crisis impacts on progress of employees Essay - 2

Financial crisis impacts on progress of employees - Essay Example Several financial crisis will be delineated while considering factors that lead to the crisis and show the possible impacts on employee. In this case, the research problem will be outlined as follows; in the recent past, there has been heated debate on the effects of financial crisis on the progress of employees, with some scholars arguing that the progress of employees is not affected by the financial crisis while others argues that the financial crisis has a negative impact on the progress. Therefore, there is a need for research to be conducted so as to establish the impacts of progress of employees. In this section, the need for the study will be justified as follows; many financial crisis has occurred having the same impacts on the progress of employees. Therefore, this study will be significant to the policy makers in designing ways to mitigate the impacts also outline areas of further research. In this section, both theoretical literature and empirical literature will be reviewed. Theoretical literature will consider theories of crises like the Marx’s crisis theory, Minky’s theory and other theories. In the empirical literature, we will discuss the various researches done by various scholars. In addition, we will give an overview of the literature showing the gap between the existing literatures. In the study, the null hypothesis will be that financial crisis has an impact on the progress of employees. While the alternative hypothesis; financial impact does not have any impact on the progress of employees. In order to evaluate the progress of employee’s, surveys on both managers and employees will be conducted so as to get information on the impact of financial crisis on employees. In addition, extensive study will be conducted in order to unearth the possible reasons for the impacts. Under this section, the results collected will be analyzed and the

Technical Writing Essay Example | Topics and Well Written Essays - 1000 words - 2

Technical Writing - Essay Example A fire lane is where you should not park. This definition is very poor and inadequate in educating people about safety and driving rules. This is because it can make the intended audience to define all places or spaces where parking is not allowed as a fire lane. This is wrong considering the fact that there are many other places in which parking is not allowed yet they do not qualify to be called fire lane for example pedestrian paths. The definition should indicate where fire lanes are located and their functions. A fire lane refers to a marked lane in a parking space or parking lot that is closer to a structure or building whose function is to allow access of safety equipment to the structure/building or escape route in case of emergency. A crime is a violation of the law. The degree of accuracy of this definition is low and insufficient in explaining what a crime is. This is because not all violations of the law can be regarded as crimes. An example is a breach of contract. This applies to individuals involved and it only qualifies to be called an offence or a wrong. An act can only qualify to be called a crime if it is a wrong against the public. This means it has to be within the parameters of the natural laws of the land. A crime can therefore be defined as a breach of laws or rules for which some authority can prescribe a conviction. Sterilization is the process of sterilizing. This definition is such a poor one and it is very inefficient in explaining what sterilizing means. It is just like saying, â€Å"John is John†, â€Å"a car is a car† instead of explaining who John is, or what a car is. Therefore, the second part of the definition should explain what sterilization actually entails. In this case, it is more scholarly to say that sterilization refers to the removal or killing of all disease-causing organisms from a surface. Activity 11.3 The intended audiences for the explanation of the term consumer are students who are undertaking b usiness studies and the purpose of the definition is to help them understand the position of a consumer in a chain of production and their role in an economy. The term consumer refers to any household or individual that utilizes the goods and/or services produced within an economy. The audience for which the definition of the term depreciation is intended for are senior high school students undertaking business studies and the definition will help them to understand why some assets that have been used are normally sold at a price lower than its initial buying price. By definition, depreciation refers to the decline in the fair value of an asset. The explanation of the term management is intended for students undertaking studies on business administration and this definition will enable them visualize their roles and functions as future managers of various organizations. According to Gomez-Mejia (2008), management refers to the organization and coordination of people and activities o f an organization in accordance to certain policies in order to achieve the organization’s desired goals and objectives. The explanation of the term software is intended for is high school students who are undertaking computer studies and the definition will enable them to understand what enables a computer to perform its various functions and applications. By definition, software refers to a group of computer programs (sequence of instructions) and

Issues Surrounding Alternative Sources of Fuel Essay

Issues Surrounding Alternative Sources of Fuel - Essay Example These sources have ultimately been proven and needed to sustain life and uphold the objective of providing a cleaner and healthier environment as a legacy to the next generations to come. â€Å"Fueling the World: What Are the Alternatives for Energy?† In addition, from the perspective of the stakeholders, the essay would explore the benefits and challenges of switching to an alternative fuel source and determine ethical and environmental issues concerning alternative fuels. The author of â€Å"Fueling the World† emphasized the implications of continued over-reliance to traditional fuel sources. An introduction to the discourse was presented by utilizing the most innovative invention of all times, the car. With all its functionality and aesthetic value, the fact remains that vehicles consume a vast amount of fuel. Elliot (2004) averred that â€Å"about 70 percent of our oil consumption is used for transportation†. The United States is identified as the biggest consumer of oil from among all the countries in the world. With this issue at hand, the author stipulated the problematic state of conventional energy sources, to wit: coal, oil, natural gas and nuclear power. The source and potentials for coal remain vast but the risks to humans and to the environment are tremendous. Oil, on the other hand, is running out and the world is currently besieged by price increases due to its depleting reserves. Natural gas was found to be the most environmentally sound but is difficult to mine and to ship. Nuclear power had already achieved such notoriety despite its potentials. Having determined the state of traditional energy sources, alternative fuel sources were highlighted: hydropower, solar energy, fuel cells, and by simply engaging in energy conservation. Potentials for alternative energy sources abound.  One relevant solution to environmentally ethical dilemma such as addressing alternative sources of energy is to call the attention of government officials to reduce government subsidy that encourages growth in high-risk natural resources areas. There are numerous conservation, recreation, and civic organizations that call on local government officials to the unit with their efforts and be the representative to establish a unified and coordinated government leadership for natural resource.  Ã‚  

Floods and subsequent death Essay Example for Free

Floods and subsequent death Essay Hurricane Katrina formed in the United States in the year 2005, causing floods and subsequent death many people. It is estimated that more than 1800 people lost their lives due to the hurricane. This data makes it the worst in the history of the United States since the year 1928. It is considered to have been the hurricane most costly and deadly in the history of the U. S and was considered a natural disaster. Among the affected places is St. Rita’s nursing home which has let to the trial of the owners Sal and Mabel Mangano. The nursing home was situated in New Orleans in St Bernard parish. It has been build 20 years before the hurricane struck. This home was situated in a depression in the ground. The approximate number of residents of the nursing home was 65 and out of these 35 of them died when the hurricane struck. This has led to the indictment of the owners the Manganos, after investigations were done on deaths at nursing homes and hospitals. Their trial was for negligent homicide where it was alleged that they willfully caused the deaths of 35 people by not evacuation them and also tying them to their beds. However I beg go differ with these allegations and they should not have been convicted for negligent homicide. Nursing Home Establishment Sal and Mabel Mangano were the owners so St. Rita’s nursing home having built it 20 years before the hurricane Katrina. The area where they built the nursing home had patches of terra firma. In marshlands this is a good area and the reason why they had considered it, was because in 1965 during the hurricane Betsy this is the only area that did not flood. In this consideration it means that with the establishment of the nursing home they had considered that incase there was a hurricane, there at St. Ritas it would not flood. This shows clearly that they would not have intentionally neglected their residents to suffer and drown in the floods and the subsequent death hence they should not have been convicted. For this consideration they had in mind that, just like in 1965 the hurricane was not going to affect them and for this reason they did not evacuate but instead they went up their one story building. A Show of Kindness During the time of imminent floods the Manganos has intended to safe other people by inviting them to St. Rita’s nursing home among these their staff and relatives as well as their won relatives. The reason they had done this was because they were kind enough and were ready to help other people. If they had a motive of willingly exposing their residents to flood and death they then could not have invited their resident. They had the best intention and they felt that they would not be affected by the floods and thus they did not neglect their residents or even wish for them to die. They had offered shelter to more than 25 people who had gladly accepted since they were exposed to the disaster of the hurricane. Safety Before the worst hurricane happened on 29th of august 2005, the manganos felt that everything was alright. They checked and inspected the area which showed that the ground were dry, the parking lot and the roof was also alright. However it is at this juncture that the hurricane struck. Sal mangano had herself gone outside with several other men to inspect the situation and ensure that everything was alright and that the people inside could not be in any danger whatsoever. Meaning they were concerned greatly about the safety of the people who were already inside at St. Rita’s nursing home, they could have done anything to ensure that these people were safe. The Hurricane Katrina Even when the hurricane struck the managos did not neglect heir resident in cat they went inside and tried to fortify the windows and the doors in desperation of trying to protect them. All the same a strong wind and a strong flow of water hit the nursing home’s walls and even penetrated inside, rising in the building. The mangano’s alongside their relatives some of them as well as their staff worked relentlessly during this time of the floods and also made frantic efforts to safe the people at the nursing home. This means all this time what they had intended was the good of the people at the nursing home and more than anything they used their judgment with the utmost good intentions of saving the people. Conclusion According to the law in the united sates of America the Louisiana requirement is that an evacuation plan should be in the nursing home but id does not state about being mandatory during an actual o evacuation. The law also recognizes a safe place and allows the nursing home to evacuate to such a place In this context the mangano’s did not willfully ignore these rules because they did everything that they could in fortifying their doors and windows in an effort to make their residents secure and to protect them from harm fro the Katrina hurricane and to protect them from drowning as well. St Rita’s nursing home was for the elderly people and others with special needs. One of the reason s why then mangano’s did not evacuate them is because they felt that by moving the people they would have been doing more harm than good, since most of the frail ones would have suffered or even died in transit. This again comes to show that the mangano’s made one judgment which was in consideration of their residents to protect them more than to harm them. The mangano’s did not at any one time leave or abandon their residents, they were there themselves and they had also invited their relatives and other people to offer them shelter, if they were willingly exposing them to danger they would not have invited their relatives and they also so would have rescued themselves leaving their residents to die. Therefore, the mangano’s used their judgment and safety measures. They felt that this area where the nursing home was situated probably could not be affected by the hurricane. They should not have been convicted of negligent homicide for the above reasons. References: Carrie Khan, Nursing home owners not guilty. 5th December, 2008. http//www. npr. org/templates/story/story. php? storyId=14261612 Dawn Fratangelo, what happened at St Rita’s Nursing Home? 3rd march, 2006. Http//www. msnbc. msn. com/id/11658446 Paul Rioux, St. Rita’s owners say no help was offered before Katrina hit, 15th September, 2005. http//seniorjournal. com/NEWS/Eldercare/5-09-15StRitaNoHelp. htm

Grey Marketing Activities Within the Software Industry

Grey Marketing Activities Within the Software Industry Future ABSTRACT The research work has presented an enlarged view of the operation within the grey markets, their functioning, pricing structure, the customer base lastly the arguments in favour, thereby evaluating -‘Can grey be good? It has also focussed on grey markets- as a subject of annoyance for the IT players OEMs. Counter-arguments hostile measures adopted to combat grey goods have also been the point of discussion. Overall, this piece of research is being successful in presenting a balanced view of the goods the bads of the grey industry from the perspective of industry players, grey entrepreneurs as well as consumers. INTRODUCTION 1.1 AIMS To obtain information insights about grey marketing activities within the software industry. With the help of Journals, case studies secondary research activities shed light on the present scenario of the grey markets (consumer targeting inclination, pricing etc). The pros cons of grey marketing shall also be presented to have an equalised view. To know what are the hostile measures adopted by firms to prevent grey activities. Present cases to depict the preventive measures adopted by firms like HP Microsoft to combat grey market products. The paper also focuses on the initiatives adopted by independent agencies such as AGMA BSA towards grey market activities. Market Penetration Grey Markets Can grey market ever be an alternative to market penetration? If yes, to which extent can it be possible? In addition, understanding the concept of ‘free riding as a way for market penetration, as mentioned in the Journal of Business Venturing (Vol 4). To evaluate: Can grey ever be good? Based on the research undertaken, evaluating thereby concluding the positives negatives of grey markets. Should they be encouraged? Can they boost an economic scenario of a country? lastly how effective can they be in increasing sales of a product? 1.2 OBJECTIVES The methodology that is to be adopted for fulfilment of the above aims is as under: Journals, Newsweekly, Internet (secondary research) along with white papers provided by firms shall be the main sources of information for this research. Primary data obtained through interviewing shall be the most vital aspect (it shall be considering not only the consumer perspective towards grey markets its products, but also of dealers operating within this arena). finally, the crux of the research (insights, analysis evaluation) will be presented to obtain a concluding perspective. 1.3 GREY MARKET: AN NTRODUCTION Majority of distribution companies are flourishing thanks to distribution channels that shepherd product from a manufacturer eventually direct them to the consumers through a chain of legitimate distributors across the world. But a mounting quite detrimental market subsists that can cause ignorant customers to buy technology products with untrue warranties, several designed for use in other countries or worse products consisting counterfeit parts. These practices can erode customer satisfaction harm brand integrity, causing major profit attrition for manufacturers. Welcome to the global ‘Grey Market where branded products have been sidetracked from the authorised supply channel within a country or are imported into a country without the approval or awareness of the manufacturer. Grey market goods are usually sold at lesser prices than those proposed by the legitimate distributors. And the pricing disparity amongst various legitimate markets customers generates an opportunity for the brokers to procure labelled products at discounted prices move them to markets where they can fetch high income. A research study by KMPG demonstrates that grey market goods pose a grave challenge to information technology manufacturers their authorised dealers. The study reveals that IT manufacturers are communally losing up to US$5 billion in profits on yearly basis, a figure that is mounting. While the grey market affects many businesses, including automobiles, consumer products, pharmaceuticals, fashion accessories others, this study shall validate that computers related products are the industry segments most affected by grey market actions. 1.4 INTRODUCTION TO THE PROBLEM (a) Software Counterfeiting Counterfeiting is amongst the most exigent problem facing the information technology (IT) industry today. Illegal replicas of brand-name high tech products are flooding the marketplace, causing harm to legitimate companies profits and dropping their aptitude to invest in research and development (RD). Multiplication of technology employed to make computers, servers, and a host of high tech products—as well as a lack of regulatory enforcement in developing countries—is speeding up counterfeiting. It is now estimated that as much as 10 percent of all high tech products sold globally are counterfeit. (b) Free Riding: A Way To Penetrate Markets? ‘Free Riding is a term which comes into picture when software products have been counterfeited. Free-riding was first introduced by Tan et al. (1995, 1997) as an alternative explanation for the incidence of grey marketing, whereby grey entrepreneurs are provided with the opportunity to enter money-making markets that are presently supplied by big firms. However, hostile measures have been taken to prevent grey market activities by agencies like AGMA BSA as well as biggies like Microsoft, HP etc. HP is administrating reseller spot checks and distie reviews to stamp out the grey market in a variety of regions without being hesitant to exercise the law courts against resellers who â€Å"breach contractual requisites†. The firm, at the moment, is taking legal action in opposition to one UK reseller for violation of agreement and cautions it has other cases under review. While, Microsoft has collared another plagiarist in the UK for flogging grey software on eBay. The software giant has scored  £35,000 in compensation against an internet trader for copyright violations and illegitimately bringing in cheap American software to Europe. Meanwhile, an agency like Business Software Alliance (BSA) is outing bandits by setting a bounty on their heads. The group announced its Blow the Whistle operation which presents $1m to workers who squeal on their companies. Certain firms are trying to launch software which might allow manufacturers detect sales through unofficial mediums. 1.5 SCOPE FOR THE REASERCH The main reason behind the proposed research subject is to obtain information on the grey markets the practices that are being carried out. The scope for undertaking the research work is as under: Understanding the global phenomenon of ‘grey marketing. Understanding the logistics within grey markets. The precautionary measures adopted by the firms agencies to prevent grey activities. The concept of free riding to penetrate markets within the software arena. lastly analysing evaluating the research produced to gather provide insights. 1.6 LIMITATIONS TOWARDS THE REASERCH The possible shortcomings for the proposed research topic are as under: Being an unconventional subject for research, obtaining information can be tough. Tracking the right sources of information is a major challenge. Information gathered through ground research cant be entirely relied upon, as it can be manipulative. Information obtained from grey suppliers may not be fruitful, as they might not give out precise information about the present scenario Interviewing people from companies or firms who are being targeted by grey marketers may prefer to remain low profile on the preventive measures they plan to adopt in future. 1.7 REASEARCH STRUCTURE The research has five focus groups (in order to understand the information.) The first chapter offers an inside view of the topic with its backdrop. It also contains the customary objectives which form the foundation for a focused research study. Meanwhile, it also describes how the established purpose will be achieved and the manner they would provide help. This section gives rationale and importance of conducting this research. The second chapter comprises the prior literature on grey markets, constructed by a range of authors and researchers in earlier years. This would aid to shed light on the pros cons in grey marketing. In addition; this chapter provides live cases published in reputed newsweekly. The third chapter talks about the type of methodology the researcher has employed to achieve the study. It gives out the arguments in favour against of each method in order to gain understanding. Furthermore, it exemplifies of some important sources which have been accessed to complete the study. Thus, this chapter explains the different techniques to achieve the objectives. The fourth chapter forms the body of the thesis as it entails the detailed analysis of the various aspects to establish the objectives. This chapter generates convincing points to support the study. The fifth and the last chapter of the paper summarises all the information gathered, finally, concluding the thesis. 1.8 SUMMARY HYPOTHESIS To summarise the above literature in few words, I shall be basically focusing weather grey markets can influence the sales of a product, thereby helping towards market penetration. Concepts, rather strategies, such as free riding shall be looked researched upon to present realistic as well as optimistic view towards grey markets, thereby analysing -‘Can grey ever be good? ‘Can grey goods help in market penetration? LITREATURE REVIEW Almost exclusively, the existing literature on grey marketing regards the occurrence as a pricing problem but falls short to identify it as a market entry opportunity for start-up entrepreneurs. The grey marketing strategy forms apt for start-up entrepreneurs in view of their resource limitations and the risk of being a first-mover in market development. Within this paper, the researcher shall be focusing on how an entrepreneur can effectively penetrate an established market by adopting suitable approaches. This is most favorable for an incumbent trader to accommodate the entrepreneur/grey marketer even if the former could compel the latter out of the market through hostile counter actions. Moorthy (1985) demonstrated the game theoretic methodology is most appropriate to investigating the behavior of market participants in such a state. This game theory is being pursued by Lim G.H., Lee K.S., Tan S.J. (Journal of Business Venturing, Jul 2001, Vol 16) to depict the strategic communications between parties concerned in grey markets and to recognise the circumstances under which entrepreneurs can effectively enter these markets. 2.1 THE POSITIVES OF GREY MARKETING A study offered by USC Marshall Research in fall 2004 by Mark Bergen (Carlson School of Management, Kersi D. Antia (University of West Ontario, London) Shantanu Dutta (Marshall School of Business, University of California) portrays the optimism towards grey markets. According to the paper, grey markets are often an helpful way to react to competitive demands, control distribution channels, fragment markets, reach unexploited markets alter the changes in market conditions. Some of the positive aspects of grey markets are being highlighted below: Incremental Sales: Grey markets are favourable if they reach formerly untapped markets. Grey markets also disclose the existence of new markets. Cell phone manufacturers competing in Malaysia, for instance, discovered a buying segment keen to pay premium prices for the newest phone gadgetry. Supply restrictions: Grey markets are advantageous if they permit dealers to overcome supply constraints scarcities. For example, IBM relied on the illegal outlets in China to get around government policies requiring the participation of local companies. Rather than make huge investments to fake partnerships with local distributors, IBM turned a blind eye to a flood of grey market imports from Hong Kong. Competitive need of opportunity: Competitors will frequently exploit grey markets if they are lucrative companies which do not follow trail shall lose significant market share, position power. This is precisely what happened to Indian-branded manufacturers of PCs. With the evident competition and sales went on at high-end retailers, the actual sales volume that led to economies of scale market penetration took place in the unorganised sector, accounting nearly 60% of total market. Several branded PC maker in India, uncared for this market, failing to reach a large unexploited segment of customers whose wants were not being met by the existing channel. Competitors that did sell to this sector have since grown to be key players. Market Segmentation: It is at times complicated to segment market within an existing distribution channel structure. Grey markets permit firms to segment their customer base more profitably than they could if they employ only a constricted base of distributors, customer uncertainty branded dilution that arrives from selling through a multi-channel network of legitimate dealers. IBM used a twofold channel approach to sell profitably in high end markets while still attaining more price responsive consumers with grey market goods; this strategy helped the company meet sales targets, spawn profits produce sales economies in manufacturing. Channel Management: Occasionally it is less expensive to abide grey market activity than to close it entirely. Shutting down grey market can be very pricey in terms of management time other resources required sensing breach, filing them, communicating them internally with distributors, and punishing the lawbreakers. Grey markets may also be a less expensive means to serve small customer sections that do not have access to authorised outlets or customers who do not value the services offered by authorised dealers. Varying market environment: In many situations, distribution channels cannot modify adequately to meet new market realities. For example, auto dealers have supply networks in places that are hard to switch. But in an epoch of soft sales, sustained incentives continually growing competition, they are struggling for numbers, even if it means forgone revenues. With effect, dealers have been more tolerant to grey markets as long as these markets let them to get in touch with a broader set of customers at improved prices. Market Aptitude: Companies that reveal grey market activities the causes following them discover about their customers their markets. Since grey markets materialise on their own, outside existing supply channels structures, they are frequently driven by influential market forces (such as short supply to a particular segment that wants the product) therefore put forward some of the purest forms of market intelligence accessible. 2.2 CONS OF GREY MARKETING 1. Dilution of exclusivity: Perhaps the most instant outcome of grey market is the draining down of exclusive rights to distribute a product. Instead of being the solitary distributor or one of a select few enterprises for delivering a product, the authorised distributor becomes merely one of several sources. The consequence is a radical drop in margins as multiple outlets struggle for the same customer. What follows promptly thereafter is only to be expected: loud complaints from the legitimate distributors and calls to the company to â€Å"do something concerning it!† 2. Free riding: But what if a manufacturer turns blind eye or, worse yet, writes off its authorized distributors complaints? While it is improbable that a distributor would split relations with the supplier in protest, there are several indirect but possibly more insidious ways of reaching the manufacturer. One of these is free riding. Free-riding was initially offered by Tan et al. (1995, 1997) as an alternative justification for the event of grey markets. In such situations, authorised traders, dispirited by anemic margins and manufacturers ineffectiveness, begin skimping on the imperative services they generally offer—such as presale service, consumer awareness education on product features, salesperson training and so on—in an attempt to lessen their expenses and match grey marketers price. This approach can weaken the value-added services and activities that often lay at the heart of several enterprises sources of differentiation and competitive plan in the market place. As one automobile dealer put it, â€Å"We invest millions in sales and service facilities. Its hard to compete with someone whose only investments are a briefcase and a cell phone.† The under provision of services is the death knell of high-end brands, as customers who value service will discard the brand in droves. 3. Damage to channel relations: Perhaps the prime cost of grey marketing is its impact on the relations and trust amid members of the distribution system. When a manufacturer has made major investments in official channel members or is dependent on one or a few associates (or both), grey markets that rip off these relationships can be particularly pricey. Visualise an official supplier that has recently coughed up $2 million to set up a new outlet and its related trappings—all to accomplish its contractual obligations. The manufacturer has guaranteed the dealer that ownership of an exclusive region will more than add up for his venture. Just as the distributor begins to foresee the promised sales, he receives word that the cash cow of the product line is offered down the street at a markdown of 15% to 20% off its own posted price. Frenzied phone calls to the manufacturer are met with empty reassurances or even stony silence. What should the enterprise do? Should it (a) match the price of its grey market opponent, doing whatsoever necessary to cut costs, (b) complain robustly to the manufacturer or (c) seek assistance from the courts, suing whoever appears liable for his current remorseful situation? 4. Undermining segmented pricing schemes: The spill over from this distribution headache expands with equivalent viciousness to most essential elements of a marketing strategy, including pricing. A basic characteristic of multinational operational strategy is the facility to price goods at levels that every local market can bear. As long as a company can fragment each market, it has a winning hand. But globalisation tosses a twist in the works. Tumbling trade barriers, easy accessibility of information and improved logistical potentials have collectively made the watertight local market a quaint belief; these factors also make it easier for grey market operators to flourish. 5. Repute and legal liability: A manufacturers ability to support its product is taken for granted. In the case of grey market goods, however, the manufacturer loses control of the product. FOR AN EXAMPLE OF how these five fundamentals can work together, consider the troubles faced by manufacturers of new, high-end IT products. High levels of services are often required to instruct customers on the features and benefits of these products. To really understand quality new product features and their functioning with other technologies, it is obligatory for the customers to learn from a salesperson at the retail outlet. To make such services available, the manufacturer time and again needs to develop a relatively elite set of distributors, fostering strong contacts and supporting the distributors actions with subsidies and an opportunity to achieve high margins. Authorised suppliers are chiefly vulnerable to grey markets in this condition. Illegitimate dealers can free ride, allowing other dealers invest in the service and offering the similar products at lower prices. Budding customers can take what they discover from authorised dealers and hunt for low-service, lower-price grey markets. The authorised sellers thus face high costs, shrinking margins and low sales. Often, the clarification they opt is to provide less service and to be more price competitive. As their margins contract, channel clashes grow, and the dealers start routing customers to competitors products which offer higher margins. The difficulty, then, eventually budges from the authorised distributors and comes to rest on the shoulders of the manufacturer. Below presented are two different cases providing two different perspectives towards grey practices. The first consist of a comparative study amongst countries the pricing structure of the grey goods that are being sold. The second case depicts the current scenario of grey activities in China. The case focuses mainly on the problem of counterfeiting of IT products the preventive measures that can be taken to minimise this nuisance. CASE 1: BUYING FROM THE GREY MARKET Are you tempted to buy cheap and cheerful goods from the grey market or should you take the authorised route? asks Sean Fleming. Anyone who has visited the US or the Far East will have found themselves going misty-eyed and waxing lyrical on the subject of how cheap things are over there. But you dont have to cross an ocean to see bargains. The difference in the price of new cars in Britain and mainland Europe they are often as much as 20% cheaper on the continent has many people hopping mad. The UKs Director General of Fair Trading has concluded the market isnt working, and has now ordered the Monopolies and Mergers Commission to investigate whether or not cartels exist in the car industry. Whatever the cause, people are realising that we must be paying over the odds in the UK for a whole range of goods and services. But do we complain? No, thats not the British way, is it? So that decision to investigate high prices in the UK will come as music to many peoples ears. Trade and industry minister Stephen Byers says he has identified this as a key obstacle to the concept of a harmonised Europe. If you want proof that things cost more here in the UK, there is plenty of it around. Bureau European des Unions de Consommateurs (BEUC), the European consumers organisation, carried out a survey last year in 52 cities across Europe in which it compared the prices of 400 different products. From this it produced an index of the cheapest and most expensive countries. The UK turned out to be the dearest of the 10 countries sampled, with a rating of 124 overall. By comparison, France scored 107, Luxembourg 102 and Germany a rating of 100. Report after report, survey after survey, they all come back with the same result when you compare like-for-like goods, we in the UK are paying more than just about everyone else in the developed world. Sure enough, its the same story with IT equipment both hardware and software. Feel like paying through the nose? No? Thats unfortunate, because the chances are youre going to. There is a painfully simple solution to all of this, of course. If stuff is cheaper somewhere else, then go somewhere else to buy it. Plenty of people import cars from Holland and Germany, and even from the Far East, so why not do it with IT? The practice of buying from non-standard, unauthorised outlets is often referred to as buying from the grey market. The grey market is a bit like the black market, except in this case no ones actually breaking the law just risking the annoyance of original manufacturers. There are big savings to be had from going grey. For example, an IBM PC 300GL, with PII 400MHz chip, 32Mb memory and a 4.2Gb hard drive running Windows 98 would set you back about #814 in the UK, but bought on the European mainland, the same PC will cost you #689. Thats a 15% saving. How about a Cisco 1601CH router? Itll cost you about #779 here and only #649 on the other side of the channel. Mike Almond is business development manager at ProSource, a company which specialises in finding this sort of deal for its customers. Using a combination of overseas contacts and the Net, ProSource keep tracks of international prices on a daily basis. When asked by a customer for a particular product, it can go out and find the best price. Were not saying were better than established channels or that our approach is the right one for organisations to adopt, but our results speak for themselves. More importantly, we offer an alternative option to our customers. Thats what a free market should deliver, Almond says. Its not difficult to find this stuff. Some manufacturers will discount heavily in particular countries to make in-roads into that market. We can use those markets to buy products back cheaper. There is, of course, a catch buy your kit from another country and the manufacturers warranty is invalid when you get home. No warranty means no technical support, no helpline advice and certainly no upgrades. Some manufacturers are so inflamed at the thought of people saving money like this that they will not just refuse support; they will also claim the law is being broken. This is despite the fact that Europe is now a single market. Phil Humphries is head of IT services at Surrey Police and it is no surprise that hes extremely cautious about ending up on the wrong side of the law, whether statutory or a manufacturers warranty rule. As part of his forces year 2000 project, a lot of equipment has been replaced, at the same time as migrating to Windows NT. He may have seen lots of expensive equipment being bought, but Humphries is not tempted by the lure of the grey market. I am aware that some of the things we use could be bought cheaper overseas by using the grey market, but I dont think the differences are as great as they used to be, he says. Apart from which, the hassle factor would be enough to put me off. This is an important factor for many people. All too often you dont know exactly what youre buying and who you are buying it from. In the event of a problem, can you be sure youll be able to get hold of them? Humphries said. But theres more to it than that. Saving money on initial capital outlay may have its attractions, but Humphries feels this is a short-term gain had at the expense of longer term success. We are moving away from a situation where we are buying boxes. Now we want to deal with a partner which can offer the right support we need from start to finish. Most of the bargain-basement IT offers that crop up in the small ads will be for software. Adverts purporting to have US versions of Microsoft Office at less than half price are fairly commonplace. David Gregory, Microsoft UKs customer legal licensing manager, warns there is more to these offers than meets the eye. He explains: Our biggest problem with people using unauthorised sources is that the overwhelming majority of this software is counterfeit. It will be passed off as being from the US, but in about 90% of cases it is pirated. The individual serial number on the product tells us where that product was bought or if it is a copy. Finding anyone with IT purchasing responsibility who will admit to using the grey market is difficult, although one IT manager confided anonymously: Most of our procurement has to go through a centralised process. However, some stand-alone projects are bought on an ad-hoc basis and thats when buying on the cheap becomes a viable option. But why is any of this stuff priced so much higher in the UK in the first place? Almost all the major manufacturers operate different pricing policies in different countries, but few can explain why the UK gets clobbered quite so comprehensively. As far as Microsoft is concerned, Gregory says: The majority of software originates from the US and there are certain unavoidable costs incurred when taking that software into other territories local support services, language support, translating documentation and so on. Not to mention currency fluctuations. But with the worlds foremost software vendor moving toward shipping single every-language versions of its products, this position is set to become obsolete. On the hardware front, the worlds number one in PCs, Compaq, also varies prices between the countries that it sells to. David Petts, Compaq UK commercial unit business manager, explains: Local pricing exists because different markets have different patterns of economic behaviour. In Europe, Compaq prices are set by the companys European HQ in Munich, and individual countries are then able to fix their own prices within a given range. So, if one were to charge at the top end of the range and another charged at the lower end, you could, in theory, see material price differences, he says. Why the UK is hit hardest by these price differentials is obviously a difficult subject for manufacturers to discuss candidly. One source within a major hardware company begrudgingly admits: Lots of things are cheaper in the US and Japan. Its the way of the world people just need to face up to it. So, there you have it put up and shut up. If you dont put up, and instead succumb to the grey market, your warranties wont work. However, there are ways to get around the warranty issue. In the case of Compaq, any warranty in operation in the UK will also cover the rest of Europe and vice-versa. You can buy Compaq kit in Holland, for example, and not have to worry about your warranty. ProSources Almond explains that it is important to keep geography in mind when venturing into the grey market. Manufacturers will claim warranties are not valid, but under EC law there is nothing to stop you buying things from any other EC country. If we have a customer that is very sensitive about maintaining the warranties, well be careful to only buy from within the right region, he says. In the case of IBM, things are even more straightforward: good old Big Blue offers global support on all its products, so it doesnt matter if you bought your ThinkPad in Durban but you live in Doncaster. A long-standing champion of the grey market is Cirencester-based RBR Networks, Ciscos largest European distribution partner. Before getting its Cisco accreditation in October 1997, RBR was something of a thorn in Ciscos side. It was doing so much business in grey-market Cisco product that in the end the company had to be brought into the fold. RBR marketing director, Jos White, takes a fairly pragmatic view of the subject. He does, however, prefer the term second sourcing to grey market he believes it doesnt sound so grubby. Using second sourcing, we could make a healthy margin and still sell cheaper than most of the competition, says White. It has to be up to the manufacturer to make it worth everyones while to use the authorised channels, he adds. Manufacturers cannot simply try and ban this sort of thing and it is definitely not on for them to throw their weight around, threatening everyone by saying that their licences are invalid and they may be breaking the law. It comes as no surprise that a manufacturer such as Compaq is against the use of the grey market. It has nothing to Grey Marketing Activities Within the Software Industry Grey Marketing Activities Within the Software Industry Future ABSTRACT The research work has presented an enlarged view of the operation within the grey markets, their functioning, pricing structure, the customer base lastly the arguments in favour, thereby evaluating -‘Can grey be good? It has also focussed on grey markets- as a subject of annoyance for the IT players OEMs. Counter-arguments hostile measures adopted to combat grey goods have also been the point of discussion. Overall, this piece of research is being successful in presenting a balanced view of the goods the bads of the grey industry from the perspective of industry players, grey entrepreneurs as well as consumers. INTRODUCTION 1.1 AIMS To obtain information insights about grey marketing activities within the software industry. With the help of Journals, case studies secondary research activities shed light on the present scenario of the grey markets (consumer targeting inclination, pricing etc). The pros cons of grey marketing shall also be presented to have an equalised view. To know what are the hostile measures adopted by firms to prevent grey activities. Present cases to depict the preventive measures adopted by firms like HP Microsoft to combat grey market products. The paper also focuses on the initiatives adopted by independent agencies such as AGMA BSA towards grey market activities. Market Penetration Grey Markets Can grey market ever be an alternative to market penetration? If yes, to which extent can it be possible? In addition, understanding the concept of ‘free riding as a way for market penetration, as mentioned in the Journal of Business Venturing (Vol 4). To evaluate: Can grey ever be good? Based on the research undertaken, evaluating thereby concluding the positives negatives of grey markets. Should they be encouraged? Can they boost an economic scenario of a country? lastly how effective can they be in increasing sales of a product? 1.2 OBJECTIVES The methodology that is to be adopted for fulfilment of the above aims is as under: Journals, Newsweekly, Internet (secondary research) along with white papers provided by firms shall be the main sources of information for this research. Primary data obtained through interviewing shall be the most vital aspect (it shall be considering not only the consumer perspective towards grey markets its products, but also of dealers operating within this arena). finally, the crux of the research (insights, analysis evaluation) will be presented to obtain a concluding perspective. 1.3 GREY MARKET: AN NTRODUCTION Majority of distribution companies are flourishing thanks to distribution channels that shepherd product from a manufacturer eventually direct them to the consumers through a chain of legitimate distributors across the world. But a mounting quite detrimental market subsists that can cause ignorant customers to buy technology products with untrue warranties, several designed for use in other countries or worse products consisting counterfeit parts. These practices can erode customer satisfaction harm brand integrity, causing major profit attrition for manufacturers. Welcome to the global ‘Grey Market where branded products have been sidetracked from the authorised supply channel within a country or are imported into a country without the approval or awareness of the manufacturer. Grey market goods are usually sold at lesser prices than those proposed by the legitimate distributors. And the pricing disparity amongst various legitimate markets customers generates an opportunity for the brokers to procure labelled products at discounted prices move them to markets where they can fetch high income. A research study by KMPG demonstrates that grey market goods pose a grave challenge to information technology manufacturers their authorised dealers. The study reveals that IT manufacturers are communally losing up to US$5 billion in profits on yearly basis, a figure that is mounting. While the grey market affects many businesses, including automobiles, consumer products, pharmaceuticals, fashion accessories others, this study shall validate that computers related products are the industry segments most affected by grey market actions. 1.4 INTRODUCTION TO THE PROBLEM (a) Software Counterfeiting Counterfeiting is amongst the most exigent problem facing the information technology (IT) industry today. Illegal replicas of brand-name high tech products are flooding the marketplace, causing harm to legitimate companies profits and dropping their aptitude to invest in research and development (RD). Multiplication of technology employed to make computers, servers, and a host of high tech products—as well as a lack of regulatory enforcement in developing countries—is speeding up counterfeiting. It is now estimated that as much as 10 percent of all high tech products sold globally are counterfeit. (b) Free Riding: A Way To Penetrate Markets? ‘Free Riding is a term which comes into picture when software products have been counterfeited. Free-riding was first introduced by Tan et al. (1995, 1997) as an alternative explanation for the incidence of grey marketing, whereby grey entrepreneurs are provided with the opportunity to enter money-making markets that are presently supplied by big firms. However, hostile measures have been taken to prevent grey market activities by agencies like AGMA BSA as well as biggies like Microsoft, HP etc. HP is administrating reseller spot checks and distie reviews to stamp out the grey market in a variety of regions without being hesitant to exercise the law courts against resellers who â€Å"breach contractual requisites†. The firm, at the moment, is taking legal action in opposition to one UK reseller for violation of agreement and cautions it has other cases under review. While, Microsoft has collared another plagiarist in the UK for flogging grey software on eBay. The software giant has scored  £35,000 in compensation against an internet trader for copyright violations and illegitimately bringing in cheap American software to Europe. Meanwhile, an agency like Business Software Alliance (BSA) is outing bandits by setting a bounty on their heads. The group announced its Blow the Whistle operation which presents $1m to workers who squeal on their companies. Certain firms are trying to launch software which might allow manufacturers detect sales through unofficial mediums. 1.5 SCOPE FOR THE REASERCH The main reason behind the proposed research subject is to obtain information on the grey markets the practices that are being carried out. The scope for undertaking the research work is as under: Understanding the global phenomenon of ‘grey marketing. Understanding the logistics within grey markets. The precautionary measures adopted by the firms agencies to prevent grey activities. The concept of free riding to penetrate markets within the software arena. lastly analysing evaluating the research produced to gather provide insights. 1.6 LIMITATIONS TOWARDS THE REASERCH The possible shortcomings for the proposed research topic are as under: Being an unconventional subject for research, obtaining information can be tough. Tracking the right sources of information is a major challenge. Information gathered through ground research cant be entirely relied upon, as it can be manipulative. Information obtained from grey suppliers may not be fruitful, as they might not give out precise information about the present scenario Interviewing people from companies or firms who are being targeted by grey marketers may prefer to remain low profile on the preventive measures they plan to adopt in future. 1.7 REASEARCH STRUCTURE The research has five focus groups (in order to understand the information.) The first chapter offers an inside view of the topic with its backdrop. It also contains the customary objectives which form the foundation for a focused research study. Meanwhile, it also describes how the established purpose will be achieved and the manner they would provide help. This section gives rationale and importance of conducting this research. The second chapter comprises the prior literature on grey markets, constructed by a range of authors and researchers in earlier years. This would aid to shed light on the pros cons in grey marketing. In addition; this chapter provides live cases published in reputed newsweekly. The third chapter talks about the type of methodology the researcher has employed to achieve the study. It gives out the arguments in favour against of each method in order to gain understanding. Furthermore, it exemplifies of some important sources which have been accessed to complete the study. Thus, this chapter explains the different techniques to achieve the objectives. The fourth chapter forms the body of the thesis as it entails the detailed analysis of the various aspects to establish the objectives. This chapter generates convincing points to support the study. The fifth and the last chapter of the paper summarises all the information gathered, finally, concluding the thesis. 1.8 SUMMARY HYPOTHESIS To summarise the above literature in few words, I shall be basically focusing weather grey markets can influence the sales of a product, thereby helping towards market penetration. Concepts, rather strategies, such as free riding shall be looked researched upon to present realistic as well as optimistic view towards grey markets, thereby analysing -‘Can grey ever be good? ‘Can grey goods help in market penetration? LITREATURE REVIEW Almost exclusively, the existing literature on grey marketing regards the occurrence as a pricing problem but falls short to identify it as a market entry opportunity for start-up entrepreneurs. The grey marketing strategy forms apt for start-up entrepreneurs in view of their resource limitations and the risk of being a first-mover in market development. Within this paper, the researcher shall be focusing on how an entrepreneur can effectively penetrate an established market by adopting suitable approaches. This is most favorable for an incumbent trader to accommodate the entrepreneur/grey marketer even if the former could compel the latter out of the market through hostile counter actions. Moorthy (1985) demonstrated the game theoretic methodology is most appropriate to investigating the behavior of market participants in such a state. This game theory is being pursued by Lim G.H., Lee K.S., Tan S.J. (Journal of Business Venturing, Jul 2001, Vol 16) to depict the strategic communications between parties concerned in grey markets and to recognise the circumstances under which entrepreneurs can effectively enter these markets. 2.1 THE POSITIVES OF GREY MARKETING A study offered by USC Marshall Research in fall 2004 by Mark Bergen (Carlson School of Management, Kersi D. Antia (University of West Ontario, London) Shantanu Dutta (Marshall School of Business, University of California) portrays the optimism towards grey markets. According to the paper, grey markets are often an helpful way to react to competitive demands, control distribution channels, fragment markets, reach unexploited markets alter the changes in market conditions. Some of the positive aspects of grey markets are being highlighted below: Incremental Sales: Grey markets are favourable if they reach formerly untapped markets. Grey markets also disclose the existence of new markets. Cell phone manufacturers competing in Malaysia, for instance, discovered a buying segment keen to pay premium prices for the newest phone gadgetry. Supply restrictions: Grey markets are advantageous if they permit dealers to overcome supply constraints scarcities. For example, IBM relied on the illegal outlets in China to get around government policies requiring the participation of local companies. Rather than make huge investments to fake partnerships with local distributors, IBM turned a blind eye to a flood of grey market imports from Hong Kong. Competitive need of opportunity: Competitors will frequently exploit grey markets if they are lucrative companies which do not follow trail shall lose significant market share, position power. This is precisely what happened to Indian-branded manufacturers of PCs. With the evident competition and sales went on at high-end retailers, the actual sales volume that led to economies of scale market penetration took place in the unorganised sector, accounting nearly 60% of total market. Several branded PC maker in India, uncared for this market, failing to reach a large unexploited segment of customers whose wants were not being met by the existing channel. Competitors that did sell to this sector have since grown to be key players. Market Segmentation: It is at times complicated to segment market within an existing distribution channel structure. Grey markets permit firms to segment their customer base more profitably than they could if they employ only a constricted base of distributors, customer uncertainty branded dilution that arrives from selling through a multi-channel network of legitimate dealers. IBM used a twofold channel approach to sell profitably in high end markets while still attaining more price responsive consumers with grey market goods; this strategy helped the company meet sales targets, spawn profits produce sales economies in manufacturing. Channel Management: Occasionally it is less expensive to abide grey market activity than to close it entirely. Shutting down grey market can be very pricey in terms of management time other resources required sensing breach, filing them, communicating them internally with distributors, and punishing the lawbreakers. Grey markets may also be a less expensive means to serve small customer sections that do not have access to authorised outlets or customers who do not value the services offered by authorised dealers. Varying market environment: In many situations, distribution channels cannot modify adequately to meet new market realities. For example, auto dealers have supply networks in places that are hard to switch. But in an epoch of soft sales, sustained incentives continually growing competition, they are struggling for numbers, even if it means forgone revenues. With effect, dealers have been more tolerant to grey markets as long as these markets let them to get in touch with a broader set of customers at improved prices. Market Aptitude: Companies that reveal grey market activities the causes following them discover about their customers their markets. Since grey markets materialise on their own, outside existing supply channels structures, they are frequently driven by influential market forces (such as short supply to a particular segment that wants the product) therefore put forward some of the purest forms of market intelligence accessible. 2.2 CONS OF GREY MARKETING 1. Dilution of exclusivity: Perhaps the most instant outcome of grey market is the draining down of exclusive rights to distribute a product. Instead of being the solitary distributor or one of a select few enterprises for delivering a product, the authorised distributor becomes merely one of several sources. The consequence is a radical drop in margins as multiple outlets struggle for the same customer. What follows promptly thereafter is only to be expected: loud complaints from the legitimate distributors and calls to the company to â€Å"do something concerning it!† 2. Free riding: But what if a manufacturer turns blind eye or, worse yet, writes off its authorized distributors complaints? While it is improbable that a distributor would split relations with the supplier in protest, there are several indirect but possibly more insidious ways of reaching the manufacturer. One of these is free riding. Free-riding was initially offered by Tan et al. (1995, 1997) as an alternative justification for the event of grey markets. In such situations, authorised traders, dispirited by anemic margins and manufacturers ineffectiveness, begin skimping on the imperative services they generally offer—such as presale service, consumer awareness education on product features, salesperson training and so on—in an attempt to lessen their expenses and match grey marketers price. This approach can weaken the value-added services and activities that often lay at the heart of several enterprises sources of differentiation and competitive plan in the market place. As one automobile dealer put it, â€Å"We invest millions in sales and service facilities. Its hard to compete with someone whose only investments are a briefcase and a cell phone.† The under provision of services is the death knell of high-end brands, as customers who value service will discard the brand in droves. 3. Damage to channel relations: Perhaps the prime cost of grey marketing is its impact on the relations and trust amid members of the distribution system. When a manufacturer has made major investments in official channel members or is dependent on one or a few associates (or both), grey markets that rip off these relationships can be particularly pricey. Visualise an official supplier that has recently coughed up $2 million to set up a new outlet and its related trappings—all to accomplish its contractual obligations. The manufacturer has guaranteed the dealer that ownership of an exclusive region will more than add up for his venture. Just as the distributor begins to foresee the promised sales, he receives word that the cash cow of the product line is offered down the street at a markdown of 15% to 20% off its own posted price. Frenzied phone calls to the manufacturer are met with empty reassurances or even stony silence. What should the enterprise do? Should it (a) match the price of its grey market opponent, doing whatsoever necessary to cut costs, (b) complain robustly to the manufacturer or (c) seek assistance from the courts, suing whoever appears liable for his current remorseful situation? 4. Undermining segmented pricing schemes: The spill over from this distribution headache expands with equivalent viciousness to most essential elements of a marketing strategy, including pricing. A basic characteristic of multinational operational strategy is the facility to price goods at levels that every local market can bear. As long as a company can fragment each market, it has a winning hand. But globalisation tosses a twist in the works. Tumbling trade barriers, easy accessibility of information and improved logistical potentials have collectively made the watertight local market a quaint belief; these factors also make it easier for grey market operators to flourish. 5. Repute and legal liability: A manufacturers ability to support its product is taken for granted. In the case of grey market goods, however, the manufacturer loses control of the product. FOR AN EXAMPLE OF how these five fundamentals can work together, consider the troubles faced by manufacturers of new, high-end IT products. High levels of services are often required to instruct customers on the features and benefits of these products. To really understand quality new product features and their functioning with other technologies, it is obligatory for the customers to learn from a salesperson at the retail outlet. To make such services available, the manufacturer time and again needs to develop a relatively elite set of distributors, fostering strong contacts and supporting the distributors actions with subsidies and an opportunity to achieve high margins. Authorised suppliers are chiefly vulnerable to grey markets in this condition. Illegitimate dealers can free ride, allowing other dealers invest in the service and offering the similar products at lower prices. Budding customers can take what they discover from authorised dealers and hunt for low-service, lower-price grey markets. The authorised sellers thus face high costs, shrinking margins and low sales. Often, the clarification they opt is to provide less service and to be more price competitive. As their margins contract, channel clashes grow, and the dealers start routing customers to competitors products which offer higher margins. The difficulty, then, eventually budges from the authorised distributors and comes to rest on the shoulders of the manufacturer. Below presented are two different cases providing two different perspectives towards grey practices. The first consist of a comparative study amongst countries the pricing structure of the grey goods that are being sold. The second case depicts the current scenario of grey activities in China. The case focuses mainly on the problem of counterfeiting of IT products the preventive measures that can be taken to minimise this nuisance. CASE 1: BUYING FROM THE GREY MARKET Are you tempted to buy cheap and cheerful goods from the grey market or should you take the authorised route? asks Sean Fleming. Anyone who has visited the US or the Far East will have found themselves going misty-eyed and waxing lyrical on the subject of how cheap things are over there. But you dont have to cross an ocean to see bargains. The difference in the price of new cars in Britain and mainland Europe they are often as much as 20% cheaper on the continent has many people hopping mad. The UKs Director General of Fair Trading has concluded the market isnt working, and has now ordered the Monopolies and Mergers Commission to investigate whether or not cartels exist in the car industry. Whatever the cause, people are realising that we must be paying over the odds in the UK for a whole range of goods and services. But do we complain? No, thats not the British way, is it? So that decision to investigate high prices in the UK will come as music to many peoples ears. Trade and industry minister Stephen Byers says he has identified this as a key obstacle to the concept of a harmonised Europe. If you want proof that things cost more here in the UK, there is plenty of it around. Bureau European des Unions de Consommateurs (BEUC), the European consumers organisation, carried out a survey last year in 52 cities across Europe in which it compared the prices of 400 different products. From this it produced an index of the cheapest and most expensive countries. The UK turned out to be the dearest of the 10 countries sampled, with a rating of 124 overall. By comparison, France scored 107, Luxembourg 102 and Germany a rating of 100. Report after report, survey after survey, they all come back with the same result when you compare like-for-like goods, we in the UK are paying more than just about everyone else in the developed world. Sure enough, its the same story with IT equipment both hardware and software. Feel like paying through the nose? No? Thats unfortunate, because the chances are youre going to. There is a painfully simple solution to all of this, of course. If stuff is cheaper somewhere else, then go somewhere else to buy it. Plenty of people import cars from Holland and Germany, and even from the Far East, so why not do it with IT? The practice of buying from non-standard, unauthorised outlets is often referred to as buying from the grey market. The grey market is a bit like the black market, except in this case no ones actually breaking the law just risking the annoyance of original manufacturers. There are big savings to be had from going grey. For example, an IBM PC 300GL, with PII 400MHz chip, 32Mb memory and a 4.2Gb hard drive running Windows 98 would set you back about #814 in the UK, but bought on the European mainland, the same PC will cost you #689. Thats a 15% saving. How about a Cisco 1601CH router? Itll cost you about #779 here and only #649 on the other side of the channel. Mike Almond is business development manager at ProSource, a company which specialises in finding this sort of deal for its customers. Using a combination of overseas contacts and the Net, ProSource keep tracks of international prices on a daily basis. When asked by a customer for a particular product, it can go out and find the best price. Were not saying were better than established channels or that our approach is the right one for organisations to adopt, but our results speak for themselves. More importantly, we offer an alternative option to our customers. Thats what a free market should deliver, Almond says. Its not difficult to find this stuff. Some manufacturers will discount heavily in particular countries to make in-roads into that market. We can use those markets to buy products back cheaper. There is, of course, a catch buy your kit from another country and the manufacturers warranty is invalid when you get home. No warranty means no technical support, no helpline advice and certainly no upgrades. Some manufacturers are so inflamed at the thought of people saving money like this that they will not just refuse support; they will also claim the law is being broken. This is despite the fact that Europe is now a single market. Phil Humphries is head of IT services at Surrey Police and it is no surprise that hes extremely cautious about ending up on the wrong side of the law, whether statutory or a manufacturers warranty rule. As part of his forces year 2000 project, a lot of equipment has been replaced, at the same time as migrating to Windows NT. He may have seen lots of expensive equipment being bought, but Humphries is not tempted by the lure of the grey market. I am aware that some of the things we use could be bought cheaper overseas by using the grey market, but I dont think the differences are as great as they used to be, he says. Apart from which, the hassle factor would be enough to put me off. This is an important factor for many people. All too often you dont know exactly what youre buying and who you are buying it from. In the event of a problem, can you be sure youll be able to get hold of them? Humphries said. But theres more to it than that. Saving money on initial capital outlay may have its attractions, but Humphries feels this is a short-term gain had at the expense of longer term success. We are moving away from a situation where we are buying boxes. Now we want to deal with a partner which can offer the right support we need from start to finish. Most of the bargain-basement IT offers that crop up in the small ads will be for software. Adverts purporting to have US versions of Microsoft Office at less than half price are fairly commonplace. David Gregory, Microsoft UKs customer legal licensing manager, warns there is more to these offers than meets the eye. He explains: Our biggest problem with people using unauthorised sources is that the overwhelming majority of this software is counterfeit. It will be passed off as being from the US, but in about 90% of cases it is pirated. The individual serial number on the product tells us where that product was bought or if it is a copy. Finding anyone with IT purchasing responsibility who will admit to using the grey market is difficult, although one IT manager confided anonymously: Most of our procurement has to go through a centralised process. However, some stand-alone projects are bought on an ad-hoc basis and thats when buying on the cheap becomes a viable option. But why is any of this stuff priced so much higher in the UK in the first place? Almost all the major manufacturers operate different pricing policies in different countries, but few can explain why the UK gets clobbered quite so comprehensively. As far as Microsoft is concerned, Gregory says: The majority of software originates from the US and there are certain unavoidable costs incurred when taking that software into other territories local support services, language support, translating documentation and so on. Not to mention currency fluctuations. But with the worlds foremost software vendor moving toward shipping single every-language versions of its products, this position is set to become obsolete. On the hardware front, the worlds number one in PCs, Compaq, also varies prices between the countries that it sells to. David Petts, Compaq UK commercial unit business manager, explains: Local pricing exists because different markets have different patterns of economic behaviour. In Europe, Compaq prices are set by the companys European HQ in Munich, and individual countries are then able to fix their own prices within a given range. So, if one were to charge at the top end of the range and another charged at the lower end, you could, in theory, see material price differences, he says. Why the UK is hit hardest by these price differentials is obviously a difficult subject for manufacturers to discuss candidly. One source within a major hardware company begrudgingly admits: Lots of things are cheaper in the US and Japan. Its the way of the world people just need to face up to it. So, there you have it put up and shut up. If you dont put up, and instead succumb to the grey market, your warranties wont work. However, there are ways to get around the warranty issue. In the case of Compaq, any warranty in operation in the UK will also cover the rest of Europe and vice-versa. You can buy Compaq kit in Holland, for example, and not have to worry about your warranty. ProSources Almond explains that it is important to keep geography in mind when venturing into the grey market. Manufacturers will claim warranties are not valid, but under EC law there is nothing to stop you buying things from any other EC country. If we have a customer that is very sensitive about maintaining the warranties, well be careful to only buy from within the right region, he says. In the case of IBM, things are even more straightforward: good old Big Blue offers global support on all its products, so it doesnt matter if you bought your ThinkPad in Durban but you live in Doncaster. A long-standing champion of the grey market is Cirencester-based RBR Networks, Ciscos largest European distribution partner. Before getting its Cisco accreditation in October 1997, RBR was something of a thorn in Ciscos side. It was doing so much business in grey-market Cisco product that in the end the company had to be brought into the fold. RBR marketing director, Jos White, takes a fairly pragmatic view of the subject. He does, however, prefer the term second sourcing to grey market he believes it doesnt sound so grubby. Using second sourcing, we could make a healthy margin and still sell cheaper than most of the competition, says White. It has to be up to the manufacturer to make it worth everyones while to use the authorised channels, he adds. Manufacturers cannot simply try and ban this sort of thing and it is definitely not on for them to throw their weight around, threatening everyone by saying that their licences are invalid and they may be breaking the law. It comes as no surprise that a manufacturer such as Compaq is against the use of the grey market. It has nothing to