Fulltec – Business Profile

PROFILE FULLTEC AG A Executive Summary Fulltec AG, Zug, Switzerland, was established in 1973 at Neuhausen am Rheinfall in Switzerland as a private limited company. The company has been taken over by Mr. Frank W. Bencsits in 2000 as the General Manager. He has been forming a fully new innovative R&D company for research and development of active natural substances for pest controlling (repellents as insecticides) since that time. Consequently the company’s activities mainly comprise R&D, but bio-insecticides and repellents are also produced and sold. Fulltec doesn’t sell its products under its own trademarks so far. The products are sold through thoroughly chosen international sales partners who resell under their own brand policies. As the results of intensive research, fully natural based active ingredients with highest activity and lowest toxicity were found in 2001. Fulltec is the patent holding company for these substances. Until 2005 most of the filed patents were granted in the EC and several overseas countries like USA, China, Hong Kong and Australia. In 2002 moved the company to its new modern site in Zug, Switzerland to expand and improve R&D and manufacturing. As these new natural based Active Substances don't have the broadly well-known negative characteristics shown by the common competitive synthetic products available on the market – above all regarding toxic effects – they will possibly completely change the way of pest control business in the near future. The inventions comprise different natural substances of two groups: Ingredients of the first group only repel and those of the second group kill and repel insects and acarides of all kinds. The main objective of Fulltec AG is to be a totally ecologically oriented company, developing and selling insecticide and repellent products containing exclusively natural based and lowtoxic active substances and ingredients. The Fulltec products are based on active ingredients obtained from natural sources by patented pure physical ways of extraction which the one group can effectively be used as Insect Repellent and the other group Insecticide. The production procedure of the active repelling ingredient consists of hydrating firstly under high pressure, followed by a vacuum and water steam treatment from natural oils and fruit acids; The insecticide actives are obtained by saturating of natural oils under comparable conditions. The range of possible applications is very wide, including but not limited to application on human, in the household, use for pets and other animals, as well as for plants. As a result, the available range of products is large and currently includes all possible methods of applications on pets, animals and human, e. g. Spray, Cream, Oil and Lotion as Insect Repellent, Lice Shampoo, Gel, Lotion and Cream, different variations for use against Dust Mites (prophylaxis and cure of Allergies! ) as well as Insecticides in all conceivable forms of application. In this regard Fulltec offers concentrates also, which have to be post processed by the customers as well as â€Å"ready for use formulations† of all products. The worldwide markets for Insect Repellents and Insecticides are enormous, in the size of Billions of Dollars. The Fulltec products have been and still are extensively tested, both inhouse and in-field as well as by independent laboratories, for both efficacy and tolerance. Existing patents and registrations are representing a barrier of entry to potential competitors. With the current trend very clearly pointing towards substitution of toxic products, the market potential for Fulltec must be considered excellent. Sales are and will be effected trough thoroughly selected business and sales partners with their own significant market presence in the respective fields and markets, which sell the products under their own brands and labels. Fulltec intends to continue with this strategy, as it allows a broader and faster international market penetration. Production currently is executed by selected and certified contractors. The production processes are explicitly specified and include st rict quality control. Current infrastructure allows significant production increases without additional costs/investment. Raw materials are available on the market at more than one manufacturer, with no significant dependence on a single source or market. Research & Development will concentrate on the further refining of existing products, on testing further possible applications for the existing products and research for new active ingredients and products. Fulltec AG is already a nicely profitable organization, but has not nearly reached its potential market appearance yet. All figures show that Fulltec only just started to penetrate some major markets, and will be able to show growth rates between 30 % and 60 % revenues each year for the whole planning period. Earnings are likely to grow even faster by a higher use of existing capacity. The further development of already served markets (with additional products and into additional retail channels) as well as the development of new geographical markets will be the main target of Fulltec AG business activities in the years to come. B – The Company Small Growth Company Profitable and financially sound Strong Growth Potential Discovered new natural Active Substances A Family of Products ready for the Markets Many Patents granted and pending Ready for substantial Market Penetration B. 1 History During the period of 2000 to 2002 extensive research was done by the R teams of Fulltec AG which led to the development of different new active ingredients with insecticide and repellent properties. Early in 2000 Fulltec AG changed its business focus from a purely trading agency to a patent holding company for products, applications and systems which cover insecticide and repellent properties – this means active ingredients and formulations including specific fields of applications. Repellents are used to repel insects, whereas insecticides have a lethal effect on such insects. Market introduction started in late 1999 with the launch of a former formulation of Repellent and a Household-Insecticide tested on the market by partially using new actives. Immediate success on the market has been achieved already with these temporary products due to the fact that a) the major shareholder and current Managing Director has great experience in the marketing of such products and therefore has extensive and valuable contacts in the industry, and b) the astonishing effectiveness of this natural product line. 2 B. 2 Current Situation The Present Board of Directors of the Fulltec Company consists of the following members: Urs O. Kraft (Chairman of the Board) Frank W. Bencsits Trustee and Tax Expert Managing Director Presently Fulltec AG has no permanent employees. So there are no liabilities in dispatches or payrolls. The business location of Fulltec is Zug, Switzerland (45-km outside Zurich). Research & Development is done in the specialized chemical and entomological laboratories in Austria. Production is carried out by beholden contractors under full control of Fulltec. B. 3 Strengths and Weaknesses The following mentioned strengths and weaknesses give an overview on the current situation of Fulltec. They will be elaborated on in more detail though in the following chapters. Strengths: Fulltec owns the one and only registration of Anti-Lice products as a Medical Device according Directive 93/42/EEC in the world. High Products Efficacy of the Repellents even under Hard Circumstances (Sweating, Swimming) All Products on Natural Basis Nigligible Toxicity to Humans, Animals and Plants Repellent has Passed the OECD Skin Absorption Test Repellent Capable of Avoiding Severe Diseases like Malaria, the West Nile Virus and the Tick-born diseases Encephalitis, Tularemie (Francisella tularensis), RockyMountains-Fever (Rickettsia richettsii), Theileriose (Tehileria spec. ) and LymeBorreliosis. Products provide high Added Value in Terms of Profit and Prestige to the Distributor High Market Share in Germany, Denmark, Sweden and Hungary French Partner with Best Connections to all French Influenced Countries Rocketed in 2005 in these Well Known Difficult Accessible Markets Attractive Industry Availability of Raw Materials from Various Sources Production at Low Costs, Little Manpower and in Production Units of Small Sizes High Flexibility in Organization, Production and Sales – no Long Term Treaties Competent Management and R Teams High Liquidity High Profitability Strong Financial Base – – Challenges: Still small Market Presence in USA, NAFTA, Asia and Southern Europe 3 – Market Penetration in far countries, like China, Japan, Australia and Hong Kong just started B. 4 Goals / Future Developments Fulltec, with its development of new technologies has an important impact in the industry. The company already gained recognition and a considerable world m arket share of 10 % for Household Insecticides and Repellents. A concentration on the most attractive markets with the best relative competitive situations will allow Fulltec to achieve strong further internal growth. Prime products will be the Repellent line and the Medical Device series of Anti-Lice products for human use, a line of Household-Insecticides and Pet Care products, and a newly developed product for use against Dust Mites. Annual growth rates in the range of 30 % to 60 % for revenues will be attainable under the current economical circumstances. Fulltec AG with its innovative technologies therefore appears as an attractive future partner for potential co-operations, joint ventures, etc. Strategically using such co-operations already allowed Fulltec to achieve market leadership in individual market segments, as the market leadership in sales of repellents in European Community Pharmacies. C Products / Technology Insect Repellents / Insecticides Broad Range of Use (Humans, Household, Indoor Plants, Gardens, Several Branches of Industry, Pets, Animals, Plants) Active Ingredients of Natural and Non-Toxic Base Significant Added Value for the Customer – C. 1 Product Description C. 1. 1 Active Ingredients / Substances Repellents The active repelling ingredients are produced under physical conditions only, e. g. by hydrating under high pressure, followed by several vacuum and water steam purifying processes of different natural oils and / or their natural grown main ingredients. They also could be obtained from semi-synthetically substitutes and fruit acids in the way of patented manufacturing procedures. The active substances used in all repellent products possess the same chemical characteristics independently of their target application on the human or animal skin. Only different concentrations and varying contents of actives and their special synergists are dependent on special requirements of various targets, regardless whether used in the form of sprays, creams, oils or lotions. C. 1. 2 Repelling Effect Pests are in a position to recognize suitable quarry as a result of the presence of so called â€Å"bio receptors†. These are for example (body-) temperature, humidity, CO2-content and certain chemical substances produced in small quantities by mammal skin metabolism processes, such as ammonia, butyric acid and urea. Conventional repellents cover up such bio receptors with a more or less effective aura. Therefore they are extremely limited in 4 their efficacy, as this aura of gas becomes rapidly perforated by friction from clothing, sweat and other external influences, which then leaves an open target for attack by pests. Patented Active of Fulltec products on the other hand finely covers the whole treated skin surface and influences and eliminates the bio-receptors by various mechanisms. These continuous reactions between Receptors and Active make the quarry invisible for the attacker (camouflage effect). This process continues until the Active is entirely exhausted (around 8-hours). As the active ingredient is water resistant, it keeps the full efficacy even during periods of sweating and short periods of swimming. In contrast to most competing products, especially to natural based products, efficacy remains at a very high level for well over eight hours. In contrast to DEET, the most widely used substance in traditional repellents, the skin tolerance of Fulltec's substance is excellent. Fulltec repellent has passed as only substance of its class the very rigorous measures of the well known OECD skin absorption test! The Fulltec products are negligible toxic for human beings and animals. C. 1. 2. 1 Active Ingredients / Substances Insecticides The active insecticide ingredients are obtained by saturation under high pressure, vacuum procedures and partially water steam amidizing from natural oils and plant extracts by a patented manufacturing procedure. Concentrations in different formulations are varying according to the use. C. 1. 2. 2 Insecticide Effect Fulltec Insecticide Actives coat the target insects and acarinas with a fine, oily film. The active substances penetrate through the respiratory openings and block them so that the insect dies within a very short time. In addition, a pronounced water displacement results in the quick and complete desiccation of the pest. Fulltec Insecticides are the one and only products in the sector of insecticide Actives with exclusively physical efficacy. Fulltec Insecticide Actives do not enable resistance build-up because of this natural and physical and completely new system of efficacy. Especially efficacy is not achieved by a nerve poisonous effect how it is the case for most traditional insecticides such as carbamates, phosphoorganics and pyrethrines, which always have more or less severe effects on humans and animals. The effects of Fulltec insecticides only occur in cold-blooded species, such as insects, spiders and mites (ticks). The substances have no negative toxicological effects on the warm-blooded humans and pets. Moreover the solely physical mechanism makes the buildup of resistances of any kind impossible. C. 1. 3. Toxicological Summary Acute oral toxicity : LD50 – > 10g/kg rat Acute dermal toxicity : LD50 – > 10g/kg rabbit Inhalational toxicity : no results, inhalation non poisonous Primary skin irritation : none irritating in patch test on rabbits and humans Mucous membranes tolerance: only slightly irritating in pure concentration Biological degradability : >90% BSB28/CSB according to the modified OECD screening test Fish toxicity : LC50 – > 100mg product/liter Bacterial toxicity : EC50 – > 100mg product/liter C. 2 Products 5 The product lines, due to the substance's unspecific effect on all kinds of insects, cover a very broad range of applications for the benefit of humans, animals, and plants. All products are based on Fulltec? s Active Substances, though in varying concentrations and with different additives to achieve specific requirements of different applications. Moreover further future applications are possible, as tests continue to reveal good results in previously uncovered areas. In addition, the formulas allow various ombinations, so that the products range can include gels, creams, oils, lotions, sprays, additives to cleaning and impregnation products, shampoos, spot-on-products, collars, bracelets and aerosols. The following tables list examples of available products. C. 2. 1 Products for human and environmental use Range of Use – Men – Women – Children Product Mosquito Protector Tick Protector Wasp Protector Horsefly Protector Repellent Bracelets Anti-L ice Shampoo Anti-Lice Lotion Anti-Lice Gel Anti-Lice Spray Lice-Repellent Spray Lice Repellent Gel Insect Killer Insect – Mosquitoes – Ticks – Wasps, Hornets – Horseflies Type Repellent – Men – Women – Children – Mosqitoes, Ticks – Headlice – Crablice Medical device – Clothlice acc. Directive – Nits 93/42/EEC – House Mite Stop – Washing Machine Anti-Lice Detergent – Business premises Roach Killer – Kitchen – Basement – Gels Insect Stop Spider Stop – Flies, Mosquitoes Insecticide – Wasps, Ants – Mites – Cloth Moths – Food Moths – Fleas, Lice – Dust Mites – Lice and Nits – Cockroaches – Cockroaches – Ants – House Crickets – Spiders – Woodlice – Ants – Cockroaches – Silverfish Insecticide Repellent & Insecticide C. 2. 2 Products for Pets and Animals 6 Range of Use Pets – Domestic animals Product Insect – Fleas – Biting flies – Lice and Nits – Mosquitoes – Ticks – Mites – Fleas, Ticks â €“ Mites, Lice – Horse Flies – Lice – Flies – Flees – Ticks – Other pests and nuisances Type Repellent & Insecticide Horsefly, Sandfly, Mosquito and Tick Protector Collars X-Line and Protect Line Spot on products – Dogs, Cats Liquid Sprays – Small farm animals Spot On – Horses Liquid Sprays – Cattle – Sheep – Other Domestic Animals Repellent & Insecticides C. 2. 3 Products for Plants & Garden Range of Use General Use Product Ant Stop Termite Stop Bug Stop Flowerspray Insect Ants – Termites – Beetles – Nematopodes – Mites – Aphids – White Flies – Red Spider Mites – Caterpillars – Ants – Fruit Flies – Caterpillars – Other Insects Type Insecticide Flowers Insecticide Trees Tree Protection Repellent & Insecticide C. 3 Independent Tests and Studies General: Various independent Institutes (1) conducted numerous extensiv e studies and tests on the individual Fulltec Products. Subjects of those were first of all the efficacy under test conditions and in practical use, secondly the tolerance (Toxicology) for humans as well as animals, and thirdly the ecological behavior (biological decomposition). As the insecticide effect is solely physical and not based on a nerve poison, there can't be any buildup of resistance. Regarding the Insecticide Products, the broad range of efficacy on various kinds of insects was demonstrated in the lab as well as in practical use. Furthermore the biological decomposition was demonstrated to be excellent. On the product Roach Killer efficacy against cockroaches was demonstrated. Regarding the Repellent Products – besides efficacy and toxicology – skin tolerance were main subjects of the extensive tests conducted. All tests showed excellent results. In addition, separate studies compared the efficacy in practical use (field tests). All tests revealed superior efficacy of Fulltec's Repellents compared to competitive products 7 including the market leaders Autan (Active: Bayrepel) and OFF (Active: DEET; both products by SC Johnson). On comparable conditions, the repelling effect of Fulltec's Repellents was shown to last longer. Worth to mention explicitly is the fact that Fulltec's Repellents are the only products available on the market yet to pass the rigorous requirements of the well known OECD Skin Absorption Test. 1) LHS Institut fur Hygieneforschung und Schadlingsbekampfung in Labor und Praxis, Miesenbachgasse 7, 2700 Wiener Neustadt, Austria PRAEVMEDIC, Carmenstrasse 8a, 8032 Zurich, Switzerland Swiss Tropical Institute, Socinstrasse 57, 4002 Basel, Switzerland BioGents GmbH, Universitatsstra? e 31, 93053 Regensburg, Germany IS Insect Services GmbH, Dr. Hans Dautel, Haderslebener Str. 9, 12163 Berlin, Germany T. E. C. Insec ticides testing, 7 bis rue pont de l'aveugle, 64600 Anglet, France Hopital Avicennes, Professeur Azreki Izri, Laboratoire de Parasitologie, 125 rue de Stalingrad, 93009 Bobigny, France Complete detailed List of Test Reports see Annex I C. 4 Customer Benefits In the following graph, the characteristics of the Fulltec's substances are compared to those of DEET, Bayrepel and essential oils in Repellents. C. 4. 1 Comparison: Customer Benefit Repellents Active Ingredients Insect Repellents Fulltec DEET Bayrepel ++ + ++ + + + + ++ -+ ++ -0 0 0 + ++ ++ ++ + Essential Oils —+* + 0 ++*1 – 1 2 3 4 5 6 7 8 * = in low concentration, higher concentrations are irritant *1= banned after 01. 09. 2006 acc Directive 98/8/EEC Explanations: Comparing Fulltec's repellent against DEET, BAYREPEL containing products and essential oil: ++ = very good + = good 0 = reasonable -= could be better = unacceptable Comments: 8 1 – Long Term Effect: Contrary to the essential oils, Repellents from Fulltec show a high repelling effect for over 8 hours. DEET and Bayrepel also have proven to be effective under laboratory conditions whereas the effectiveness depended highly on the amount of active ingredient (high doses of > 30 %+ are effective like Fulltec’s Actives. Lower concentrations have poorer efficacy). 2 – Broadband Efficacy: Fulltec’s Repellents show the best broadband repelling efficacy against a wide range of nuisances, including multiple species of mosquitoes, ticks, wasps, horseflies, biting flies, black flies and mites. Products containing DEET at higher concentrations (> 30 %) are also effective widely. Bayrepel is only available in concentrations 10 and 20 % and exhibits just short protection times so that reapplications every 2 to 3 hours are necessary to get a safe level of protection. Essential oils are unsuitable because of practically non-existing protection time and broadband efficacy. 3 – Water/Sweating Resistance: Compared to the other substances, Fulltec’s products are more water resistant. As they are deactivated neither by sweating nor under water contact (e. g. short swimming) they keep their effectiveness also during sports. 4 – Skin Care: The substances used by Fulltec show significantly more skin care qualities than the competition. They only contain highly skin tolerant and even skin caring base- and active ingredients. Therefore the products are not only highly effective repellents, but also high quality cosmetic products. The plant oils and their skin caring derivates give the skin energy and vitality, whereas natural Vitamin E fights potential inflammations. Evenly applied, the product maintains the skin's natural moisture, and makes it soft and elastic. 4 – Skin Tolerance: Traditional, effective Repellents all contain high levels of skin irritating and partially highly toxic substances. Contrary, Fulltec products have never caused eczema or allergic reactions so far. Essential oils in higher concentrations cause skin and mucous membrane irritations. Furthermore they can solve plastics and synthetic textiles, which is a problem of DEET products, too. Bayrepel seems to have second best Skin Tolerance but examinations of its toxicological properties are not finalized yet. 5 – Ecological Tolerance: Fulltec products are natural non-poisonous products with a high ecological tolerance. Essential oils, above all technical qualities of Rosemary and Citronella exhibit toxic effects on soil bacterias and show only poor ecological tolerance. DEET on the other hand is an ecotoxic substance. Bayrepel seams to have only slightly ecotoxic potential. 6 – Price: The Fulltec product’s prices are usually conforming competitors and markets policies. Fulltec’s low standing expenses allows following all prerequisites of different markets and competitors pricing. 7- Availability: Bayrepel (Autan) definitely has the best availability in all retail channels today. Being the No. 1 in Central European pharmacies Fulltec? s Repellents reached a high level of availability. Furthermore they are able to substitute all Natural Actives based competitive products which will be banned after 01. 09. 2006 (deadline of Directive 98/8/EEC). These other Natural products mainly are sold through drug stores, but constantly decreasing customer acceptance and demand will lead to only a narrower availability in the future in countries outside of the EC as well in NAFTA under further restrictions by the EPA and the Canadian PESTICIDE REGISTRATION and EVALUATION COMMITTEE. 8 – User friendliness: All products are user friendly in the sense of easy application. However DEET is aggressive against several materials like plastics, is toxic and causes skin and mucous membrane irritations. This is also valid for several essential oils. Bayrepel seems to be more safe and gentle but is restricted for application on children below an age of 2 years. Only Fulltec Repellents fulfilled requirements of the OECD skin absorption test and can be used safe under observance of the recommended directions for use. In summary, the Fulltec products clearly offer the highest customer. The Fulltec products are highly effective against insects comparable to high concentrated DEET. In contrast to DEET, Fulltec products are based on natural ingredients and show excellent skin tolerance 9 and skin care qualities. In comparison essential oils repellents are of natural base, too but they show a low efficacy in terms of repelling insects over a longer period of time. Moreover a lot of them cause skin and mucous membrane irritations and possess photosensitizing potential. C. 4. 1 Protection against Competition The products are adequately protected by granted or pending patents). Fulltec AG owns the patents protecting the repelling as well as the lethal features of the active substances. In addition, the isolated declaration of ingredients according UPAC or INCI usually does not allow gaining knowledge on the exact composition and special nature of the Actives. Fulltec’s exclusive knowledge of the patented manufacturing process of Actives guarantees imitation protection of Fulltec Repellants and Insecticides by competitors. D Markets Very attractive market (extremely high market volume, high growth) Fulltec shows all pre-requisites to be successful Market is already accepting the Fulltec Products Consumer Trend clearly going towards Natural Products Barriers of entry already overcome D. 1 Market Overview D. 1. 1 Description / Characteristics If only for its enormous size, the market for Insect Repellents and Insecticides should be considered extremely attractive. Despite the big established competitors dominating the market, there are various attractive niche markets available to innovative companies. Fulltec, with its range of nature products falls into such a niche. The currently most widely used ingredients in competitive products are DEET (in repellents) and Pyrethroids (in insecticides). All those substances are being increasingly questioned and therefore avoided by many consumers and more and more even by governments and appropriate authorities. It can be expected that those products with questionable active ingredients will have to be substituted more and more by natural products. This opens up an extremely high potential for Fulltec to firmly establish itself in this market. As the products meet a high consumer acceptance already today, a bigger market penetration can be safely foreseen. D. 1. 2 Market Segments The segmentation of the market shows the following criteria: †¢ †¢ Range of use: Humans and Environment / Pets / Animals / Plants Type of use: Repellent (to repel insects) / Insecticide (to kill insects) Region: Switzerland / European Community / USA / Canada /Australia †¢ To identify the estimated total market volume, the various market segments were analyzed at first (Supplements: Estimated Market Volume). Starting points were market studies of IHA GfM for Switzerland and GFK for Germany. In addition, the relevant market segments for Fulltec in terms of distribution channels, competition, prices and margins were analyzed. On the basis of market data of the specialized trade (pharmacies, etc. ), the total market volume for Switzerland and Germany was estimated. In order to calculate total 10 world market volume, Switzerland's and Germany? s per capita consumption was taken as a base. However adaptations to in some instances different distribution channels, price levels, usages, etc. were made. D. 1. 3 Client Structure To distribute its products, Fulltec currently uses the following channels: †¢ †¢ Specialized Trade (Pharmacies, Drug Stores), and more sparely in Retail Chains and Stores However it is a set goal to penetrate all segments of distribution. In Switzerland for example, the specialized trade segment could be covered by big players in pharmaceuticals and special chemicals (for Repellents), and the retail chains and stores by international players (for Insecticides). Moreover, Fulltec currently is in negotiation with various Multinational Companies. D. 1. 4 Factors for Success In the Insect Repellent and Insecticides markets, the most important factors for success are definitely the efficacy of the products and the presence at the â€Å"point of sale†, i. . the easy availability for the consumer. Moreover the tolerance of the products for human and environment is of increasing importance. In addition, an increasing sensibility against synthetic, toxic substances is recognized, as more health consciousness of people leads to preference of natural products. The Fulltec products are both, highly efficient and ecologically well tolerated. In order to imp rove easy availability for the consumers, Fulltec decided to collaborate exclusively with established distribution partners. It is possible to achieve a high market presence in short time with this strategy. Fulltec products perfectly meet the factors of success, which allows the continuation of the quick market penetration by Fulltec products. D. 2 Market Position Current Situation Currently, the strongest market position held by the Fulltec products is repellents, a highly attractive market segment. The second position in terms of market penetration as well as attractiveness of the market segment is held by the natural insecticides, especially the market segment Pet Protection. All remaining product groups (Repellents and Insecticides in all their broadness) are positioned in relatively highly attractive market segments, but have not reached significant market penetration so far. Future Situation Longer term, Fulltec expects to achieve fairly dominant market positions in the following segments: Insect Repellents, Anti-Lice product line, Household Insecticides, Pet Protection and Mite Stop, which at the same time are the most attractive product groups and market segments. Less dominant, but nevertheless sizeable market positions are expected to be attainable in the egments Agricultural Insecticides and Garden Products. Repellent 11 At least for the next one or two years, Repellent products are expected to continue contributing the largest share to total revenues among all product groups, as the total world market for such products is huge and extremely attractive. Furthermore, Fulltec? s natural and non-toxic products today are already well accepted in Europ e and USA. It is assumed that over time, natural products will increasingly challenge the established toxic products, gaining in market share also due to legislation changing towards more restrictive forms. Anti-Lice Products Market penetration of these products is on the best way to get No. 2 in Europe and No. 1 in Medicine Devices in EC. It is expected to significantly increase its share, as being of natural base and pure physical efficacy often is the decisive factor for being chosen by consumers. Efficacy of the product is excellent, and it is being very well tolerated. Pharmaceutical trading (Drug stores and Pharmacies) will be the preferred sales channel, thereby guaranteeing high margins and profits. Pet Products By nature, the market for pet products is very attractive and competition is very high. As Fulltec will concentrate its efforts on those markets, which offer the best relative competitive position, pet products will not be at the forefront of marketing efforts at the moment. A potential cooperation with one or more established companies in this field however could change this assessment rapidly. Natural Insecticides Due to ever increasing requirements in terms of ecological tolerance and to the extensive restrictions of Directive 98/8/EEC according Biocides, natural insecticides should gain significant market share over the coming years. This product group therefore is expected to contribute markedly to total revenue growth. Mite Stop Taking into account the steady increase of Dust Mite Allergies, this segment is clearly a market of the future. Dust mite allergies come from a saturation of the air with dust and excrement particles. A Fulltec product to exterminate dust mites is already fully developed and successfully introduced into Central European markets. It is applied by spraying into air and on mite-infested surfaces. The dust particles become saturated with Mite Stop and drop to the floor, which already brings about a cleaning of the air. The fallen down particles start to act as insecticide against the dust mites population. The circle of the extermination of dust mites therefore is closed. A relatively quick market introduction is possible, as a registration as Anti-Allergicum can be avoided if the product is advertised and sold as primarily an Air Cleaner. All other currently available products on the market are still based on toxic Pyrethroids, which puts the Fulltec product into an advantageous position. Alternative methods used are various medications, which however combat the symptoms rather than the cause of the problem. Furthermore, as such drugs are high margin products, the Fulltec alternative can also be expected to sell at premium prices with high margins. D. 3 Market Assessment The following points peak in further increasing market penetration by the products of Fulltec: 1. Acceptance of the Fulltec Products 12 On the markets already served, the Fulltec products generally achieve a high market acceptance. 2. Barriers of Entry The barriers of entry to new contenders are quite high. Fulltec has already overcome them as the products lready have been tested in terms of efficacy and tolerance, and as patents and registrations processes have already been initiated. 3. Trends A major trend within today's society points towards substitution of toxic substances by natural ones. Accordingly, the market potential for Fulltec's natural and non toxic products can safely be considered very excellent. E Competition Competition in Repellents mostly DEET and Bayrepel based Competition in Insecticides mostly Pyr ethroid, Carbamates and Organophosphonics based Significant competitive advantage for Fulltec Fulltec is ready for competitive strategies E. 1 Competitive Products E. 1. 1 Repellents In competing repellents worldwide, almost universally the substance DEET (N,N-Diethyl-mtoluamide) is used. This specifically effective Insect Repellent is toxic and has a strong irritating effect on eyes and mucous membranes. Some children have shown a harming of nerves and, due to inhaling DEET, cases of death have been reported (Tenenbein, M. JAMA, J. Am. Medical Assoc, 1987, 258). In competing repellents in Europe, almost the substances Icaridin (Bayrepel) and IR3535 are used. Alternative repellents such as essential oils show a rather low efficacy and can cause allergic reactions. E. 1. 2 Insecticides A multitude of active ingredients is used by competing insecticides products. Most of them are nerve poisons. A lot of the formerly highly praised substances (DDT, Dieldrin, Lindan) are banned today in many industrialized countries because of their toxicity. Alternatively, Pyrethroids are used very widely today (about 50-75% market share). Pyrethroids are synthetic insecticides. Although the toxicity of this insect specific biocide is markedly lower for mammals, it is still a factor of up to 100-times higher compared to the Fulltec Insecticides. In addition, Pyrethroids show a considerably higher fish toxicity. Other natural insecticides currently show a clearly lower efficacy compared to both, the synthetic insecticides and the Fulltec products. E. 1. 3 Most Important Competitors The following table gives an overview on Fulltec's most important competitors and their products. In the Supplements section, there is a table listing the most important companies within the various market segments in Switzerland with their market shares. 13 Competitors and Competing Products Company Bayer SC Johnson 3M Corp. Reckitt & Coleman Shell Vogt AVON Description Multinational Chemical Co. Multinational Chemical Co. Multinational Chemical Co. Multinational Chemical Co. Multinational Chemical Co. Small Specialty Co. Intl. Cosmetics Co. Geographic al Presence International International International International International Switzerland USA and Intl. Market Position Market Leader worldwide Marked Leader USA No. 2 USA No. 3 worldwide No. 1 in Market Segments Leader Repellents CH No. 1 Mail-order USA Company Bayer SC Johnson Insecticide Baygon Raid Substance pyrethroids pyrethroids Repellent OFF, Autan Ultrathon KIK Anti-Brumm Skin So Soft Substance DEET/DMP Bayrepel DEET/DEP DEET/DMP DEET Natural Base 3M Corp. Reckitt & Coleman Heropic, Neocid pyrethroids Shell Shelltox pyrethroids Vogt AVON E. 1. 4 Competitive Advantages / Disadvantages Advantages: The products of Fulltec have enormous advantages of being based on substances well tolerated by human and environment. They do contain neither the toxic DEET nor any other harmful substances. Moreover the products show high efficacy – comparable or higher to the synthetic products and significantly higher than essential oils. Initial success, especially due to above factors, is clearly visible on already covered markets. Disadvantages: The products themselves do not have any apparent disadvantages. As the market position of the competitors is fairly dominant so far, a successful market entry of small companies like Fulltec is not easy. However, the massive advantages of Fulltec products cited above as well as an experienced management will help Fulltec to overcome such hurdles. E. 1. 5 Competitive Strategies The constantly increasing demand for natural products may tempt competitors into imitating Fulltec's substances. However the patents as well as the product know-how speak against such strategies. A substitution of the Fulltec formula by another, equally effective natural substance, is not discernible so far. After all, some competitor might be tempted into trying a takeover of Fulltec AG. The current shareholder structure though represents an insurmountable barrier at least for unfriendly and unwelcome takeover attempts. In any case the interests of the shareholders will be of major importance. F F. 1 Marketing Market Coverage 14 F. 1. 1 Distribution / Sales Distribution is effected through sales partners with a high market presence in the respective market segments. This strategy will be continued, as it allows a relatively rapid penetration of the markets. In addition, it allows using more than one distributor in a single market with the different Actives and slightly modified formulas in different structured market segments. This strategy also allows opening up the various distribution channels in a given market (Specialized Trade, Retail Trade, Mail-order Business Partners, etc. . However it is possible that some distributors are in direct competition with others selling a different form and Active Ingredient of the same basic product. For products or product groups which are not part of first priority marketing plans, strategic alliances with companies firmly entrenched in those market segments are planned. F. 1. 2 Communication Communication will be expanded to new partners to develop new markets and activities of business. Further it will be necessary to perfect and extend information. The end users will be more clearly informed about both, the negative effects of the competitive products, and of course about the advantages of the Fulltec products. This strategy will lead to accelerated substitution of the traditional synthetic products by natural Fulltec products. For this purpose, various media, like Internet TV and radio advertisement appear predestined. F. 2 Product and Marketing Design Currently Fulltec does not sell any products under its own name. The distributor or sales agent can individually choose a brand name of his own. F. 2. 1 Product Line The product line of Fulltec is described in detail earlier in this report. All products are available either as bulk ready to use, as concentrate (container, barrel) or already packaged as lotion, spray, etc. Future Years In the following years Fulltec expects continuous gain of overall market share. This should lead to a sustainable growth in revenues of at least 40 -60% per year. It will be looked for further sales partners in Europe as well as in the USA, Asia, Africa and South America, mainly for the Repellent, the Insecticide and the Anti-Lice Product line. G Production / Procurement/ Ecology / Location / R & D Patented Production Processes – Ample unused Production Capacity – No specific Dependence on Suppliers of Raw Materials – Environment-friendly Production – Good Location – R & D Emphasis – Refine existing Products – Develop further Applications G. 1 Production All sold products are produced under control of Fulltec by indep endent contractors. The production processes mainly consist of the manufacturing of Active Substances by physical 15 conversion of natural substances into efficient derivates and mixing various substances according to proprietary and secret processes and formulas. Consequently only a relatively small number of equipment and technical installations are needed. To get to the finished products, automatic filling and packing machines are used. The production process itself is high technology, although just common lab equipment (including gas chromatography and thin layer chromatography) is necessary. As the production process is highly automated, labor costs are kept low, too. Fulltec has the option to build up its own production facility or seek external contractors for tasks like mixing, filling and packaging. However at the moment such a construction step is not planned. G. 2 Procurement All ingredients and raw materials needed for the production are easily available. Suppliers are mainly big companies, competing against each other price-wise as some of the raw materials used are also traded on the commodity markets. The prices for the raw materials used do not fluctuate widely. Therefore no problems regarding the supply side are foreseeable, which should guarantee an ongoing smooth production process. G. 3 Ecology G. 3. 1 Legal Compliance All relevant laws and orders of Switzerland and the EC are strictly followed by Fulltec. However it is important to note that Fulltec does not fall under the order on ecological tolerance (Umweltvertraglichkeitsprufung) or the Storfallverordnung). For all products, safety data sheets are available, as requested by the regarding directives, e. g. Stoffverordnung (order on materials used). G. 3. 2 Raw Materials The main components of the products consist of natural raw materials. Apart from water, mainly non-toxic and well biodegradable substances are used. Some other ingredients of very low toxicity (all within Swiss poison class 4 or 5 or not classified) are just used as additives in very low quantities. All raw materials are well biodegradable. G. 4 Location Fulltec AG is located in Zug, Switzerland. Infrastructure: Currently production is done by contractors which are capable of increasing volumes significantly without causing any problems. The (rented) offices are fairly new, and adequate for Fulltec's sales activities. As most of the clients are located in different foreign countries and transport costs are low at current sales volumes, this point is of no major importance at the moment. At a later stage though, when sales continue increasing at estimated rates, other (outsourced) production facilities within major client regions or countries will be installed. The generally very high level of education of employees in Switzerland and countries of contractors (Austria, Germany) represents a competitive advantage. Locations are very attractive for employees. 16 Distance to clients: Education: Labor Costs: Corresponding to the high level of education, salary levels are quite high as well, at least compared to other countries. However, as the operation of Fulltec is not very labor intensive, this does not represent a major disadvantage. G. 5 Research & Development Research & Development is being conducted in laboratories in Austria. As this division caused no problems in the past, there is no plan to combine these efforts in one single place. In R, emphasis is being put on refining existing products. In addition, further potential applications for the same basic formula inherent in all Fulltec products are also developed as new Actives on natural basis. H Organization / Management Direct major efforts to the goal of achieving competitive advantages Lean Organization Management with proven capabilities Profit Sharing by Management H. 1 Organization H. 1. 1 Core Functions In the following, we comment on the core functions within Fulltec today, in the order of current importance or weighing (number of people involved, financial resources). Marketing / Sales: This part definitely requires the most attention in the current phase of development. New distribution and sales partners have to be located, new markets have to be developed, new products introduced, etc. Strong partners offer the best prospects in terms of the variety of products represented and of potential market penetration. Production: The production processes are very well matured. Therefore it can be outsourced to thoroughly selected partners. However Fulltec controls the whole process at any stage. Of course there will be efforts to optimize production, to use free capacities, etc. Even though good patent protection is given, the producers have to prove reliability in keeping the exact formulations secret. R: The major phase of R, the development of the formulations and the final products, is basically done. Therefore main R emphasis will be put into the refinement of existing products and the identification and development of additional applications. However this does not mean that no new products or product lines will be developed in the future. Procurement: As already mentioned in other sections of this business plan, the procurement of the raw materials does not pose any problems, neither in terms of availability nor in terms of price. Increased sales volume in future will even lead to better purchase conditions. Service: Sales advice and support is of major importance for every production company. However, regarding the specific construction of the company, service does not play a major role in the case of Fulltec, as the products do not require any kind of maintenance, repairs, or other frequent advice. Speed and accuracy of delivery on the other hand is of paramount importance. 17

Jonas Salk

Jonas Salk was born on October 20, 1914 in New York City to Russian-Jewish immigrants. As the first member of his family to attend college, he developed a fascination with the flu virus and sought a way to eliminate its ability to infect people with influenza. After accepting an appointment in Pittsburgh, Pennsylvania, he began working with the National Foundation for Infantile paralysis and there began work on polio, the cure for which Jonas Salk would be known forever. In 1950, children throughout the United States were stricken with polio, or poliomyelitis. Those children who did not die from the disease were left crippled. In some cases, adults contracted polio as well. One of the most famous examples was president Franklin Delano Roosevelt, who was left in a wheelchair after a bout with the disease. Salk created a polio vaccine from a dead polio virus, which lost the ability to infect once it was killed. It did, however, retain the ability to immunize any who were injected with the â€Å"dead† form of the virus. Later, other work was performed in order to create a â€Å"live† vaccine that could be given orally (Salk’s vaccine had to be injected). The administration of this â€Å"live† vaccine failed, and Salk’s was used from that point on. Salk could have patented the vaccine and become a rich man; rather, he refused to do so in order to get the vaccine out to those who needed it quickly. Jonas Salk’s polio vaccine has completely eliminated the disease – provided the vaccine is given. After his success with polio, Salk created the Jonas Salk Institute for Biological Studies and not only continued his research, but wrote many books as well. He passed away on June 23, 1995 at the age of 80.

Khafre and Seated Scribe Essay

Comparison The two pieces, â€Å"Khafre† and â€Å"Seated Scribe†, are two art pieces that have originated from the ancient Egyptian time period. These two pieces are very similar and different in many ways. With this in mind, we learn that art work, depending on the time period, may have similar meanings but also different messages and that same time. The piece â€Å"Khafre† has many differences compared to â€Å"Seated Scribe†. One of these differences is simple; Khafre, the Pharaoh that is being depicted in the piece, â€Å"Khafre† has the body build, such as muscles, that would give the viewer the idea that he is a leader. While on the other hand, the piece â€Å"Seated Scribe† shows a man sitting down with little to no body strength and shows the viewer that he had a good life that was free of physical labor. Another difference between the two pieces is that the lives of the two are completely different. While the Pharaoh shows a life of seriousness, strength, and power; the â€Å"Seated Scribe† shows the viewer a life of wisdom, alertness, eagerness, labor free, and attentiveness. Another major difference between the two pieces is that on the â€Å"Khafre† piece, the Pharaoh’s throne has plants, papyrus and lotus plants, that represent his ruling and power over the upper and lo wer regions of Egypt. With this in mind the viewer of â€Å"Seated Scribe† notices that the scribe might have been in one of those two regions of Egypt and although he shows more of a labor free life, he might still be under the law of the Pharaoh, Khafre; proving the fact that Khafre has more obvious power over the normal human being, yet alone a scribe. One last difference is in the wealth difference of the two people. While the Pharaoh sits on a throne with a backing on it, the scribe sits on the hard ground but still has perfect posture. With these differences the viewer can begin to have a better understanding of the meaning and symbolism behind the two pieces. Aside from just differences, the two pieces â€Å"Seated Scribe† and â€Å"Khafre† are also very similar as well. One of the many ways that they are similar is in their posture. The two men sit upright and alert. Their eyes focused on the task at hand. For the scribe it may be more obvious but you can also tell Khafre’s alertness by his clenched fist and his wide open eyes. The two pieces also share the similarity of service. While the scribe is shown possibly writing words for the Pharaoh, therefore doing a service for him; Khafre sits on his thrown and can be viewed as him serving his people. This idea can be shown by the way that they are seated and the way they are looking with full alertness. The last similarity between the two pieces is that the two are idealized very clearly. With the scribe you can take a quick look and have the idea that the piece is representing a person who is not of royal being and that he is a type of writer. The same can be said for the Pharaoh; you can look at the piece and automatically notice that the piece represents a Pharaoh by his body stature, his headdress and false beard. With differences in mind, the viewer of these two pieces can get a better knowledge of the art world and what they truly mean. Overall the two pieces are similar and different in many ways. But having the ability to study and have a closer look into the two pieces and get an idea of what the artist was trying to portray, is what makes art so fascinating. The two pieces are just a small part into the art of Ancient Egypt. But knowing what the two are about, is what makes the viewer and student have a better appreciation of the art of the past.

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

Orange_Electronic_Company - Essay Example In analyzing the environment, the orange company limited needs to know both its internal and external environment that relates to their business. An efficient tool for carrying out an environmental analysis is the PEST tools which looks at the Political, Economic, Socio-cultural, and Technological tool. It looks at how these aspects affect the company’s business directly or indirectly. This aspect forms the macro environment of a company. To examine the political factors, a study must be conducted to look at the various regulations and codes imposed on various industrial sectors that may affect negatively or positively the organization. Other political, environmental aspects are political stability, market regulations and taxes in a particular country of establishment (Hepburn, 122). Economic factors are analyzed by evaluating both national and international economic rules that might have an impact on the market. Sociocultural factors include the culture of a place within the market and how it has an affects the market. For instance, restrictive cultures have a negative impact compared to open cultures which have more benefits. Lastly, technology is an important aspect to look at as the development in technology will enable an organization to flow with new developments as they arise. The microenvironment is the internal factors that the organization can control to suit their needs. The internal environment consists of customers, suppliers, employees, competitors, shareholders, and the media. The company can adjust its services in a way that all these aspects will enable their business become successful. For instance, the company can manufacture products that meet the needs and wants of their customers to retain and attract customers. Competitors will affect the plan, as price adjustment will be necessary to suit the demand curve. The employees must be few at the beginning to cover the initial

Hedge and Exchange Rate Effects Coursework Example | Topics and Well Written Essays - 2000 words

Hedge and Exchange Rate Effects - Coursework Example The model publicities play a role in the features of the industry. For all stated nations, the affiliation amid the publicity and the commerce features is widely consistent with the economic hypothesis (Bodnar & William 29). Bodnar, Gordon and William claim that it was the contribution of leading financiers’ trade and affordability conferences and the Princeton Finance Seminars through helpful remarks. The provision of information on the direct financial speculation of Japan assisted in the recognition of the trends, developments and regressions made in the financial systems of the three nations (Bodnar & William 29). Japanese stock information from the Nikkei NEEDs Databank was made accessible to Firestone Library at Princeton University and acknowledged when making the publicities findings. The dataset that was utilized in this test was one of a kind due to its information on the currency conformation of the assets of the organizations and obligations involved with the gover nments of the three nations.   ling manners: They decreased the share of the debt contracted in foreign currency and, The organizations corresponded more methodically with their overseas currency obligations with assets denominated in foreign currency and export returns This was mainly achieved effectually by decreasing their susceptibility to exchange rate shocks. More widely, this examination offers new proof on the effect of exchange rate regimes on the level of un-hedged foreign currency debt in the commercial sector and therefore on cumulative monetary steadiness. In order to test the strength of these results, Bodnar, Gordon and William verified that these findings support a broad range of circumstances and econometric particulars. Within a panel framework, the writers managed to indicate that the findings are strong to varying techniques for categorizing exchange rate organization and measuring exchange rate flexibility, potentially confounding macroeconomic inspirations, and are not propelled by adjustment s in the protocols of banks’ overseas currency loaning (Bodnar & William 29). Additionally, Bodnar, Gordon and William used an even an event test approach around exchange rate guidelines adjustment so as to contrast the fluctuations in the organizations’ overseas currency liability assets cross-sectional. However, the organizations’ had to have varying levels of overseas currency barriers. After the study, it was discovered that the adoption of flexible exchange rate rules made the organizations’ decrease their un-hedged overseas currency publicities by making use of more methodically offset assets in overseas currency against their dollar debt risk (Bodnar & William 29).  

Black & Deker-Eastern Hemisphere and the ADP Initiative Case Study

Black & Deker-Eastern Hemisphere and the ADP Initiative - Case Study Example In October 1995, Bill Lancaster was appointed as the President of Black & Decker Eastern Hemisphere. Within a few months of working there he was faced with a critical decision of selecting a new system of functioning within the organization. On one hand manager HR Anita Lin proposed a new performance appraisal and management development system and on the other hand should he introduce Appraisal Development Plan (ADP) throughout the eastern hemisphere. Before being position as the President of Black & Decker Eastern Hemisphere , Lancaster had seen the level of success ADP brought to the U.S and was quite impressed by its performance in terms of management development. But will the ADP be suitable choice for the Asian organization culture or not? The main problem existed over the question of 360Â ° feedback element. Lancaster was bothered that whether the employees will be comfortable working in an environment where your performance gets feedback from your managers, coworkers, subordi nates & peers. Another concern that Lancaster had about the Eastern Hemisphere headquarter was that Black & Decker had either spent or committed to spend $80 million for the setup of Singapore headquarters and new factories in India, China and Singapore itself. But the main problem laid in that in the early 90’s Black & Decker ranked 5th in Asia and had a very weak share. From the case its evident that this also bothered Lancaster that even after investing so much what if the position did not improve much or didn’t improve at all. Lancaster also found out that there was no specific system in place and various managers operated in styles which they were comfortable with; some preferred empowerment of there subordinates, while others believed in the traditional authoritarian styles. The Gap between the bosses and their subordinates in this part of the globe has always existed. People were very reluctant and cautious while talking about people higher than their ranks beca use of the fear of developing negative opinion and grudges in the minds of the people they commented on. 1b. will ADP address those weaknesses? how? After getting promoted as the President of Eastern Hemisphere Lancaster started off to analyze the weaknesses in the system there by talking with the employees throughout the organization. Firstly interviewing MAC of Eastern Hemisphere which was composed of the directly reporting members to the Headquarters of Black & Decker. Next he also gave time listening to the people other than officers and leaders of the organization. A traditional MBO(management by objective) - type system was being used which had been replaced in the US some time back. Although half of the fortune 500 companies had MBO system but they were not completely happy with it and when ADP system came they quickly shifted to it. ADP will resolve the weaknesses in the following manner: By implementing the ADP system in the Eastern Hemisphere the Boss-Subordinate gap can b e bridged and the employees can feel relaxed while working increasing the much needed productivity to step up the ranks. ADP system would make managers interact with their subordinates more often hence making them keep a track of individual employee performance and can guide them in one way or other. A calm and peaceful working environment will be formed as everyone will take care of their attitude and behavior with each other while at work as they know they’ll be evaluated on this basis apart from their work performance. It

Team discution 5 Assignment Example | Topics and Well Written Essays - 500 words

Team discution 5 - Assignment Example They are comparing this to the equity ratio which is easy to measure given that they received similar scales at entry level. 2. Distributive Justice- This is delineated as the perceived fairness of various outcome of the taken decisions and is judged through measuring whether the stated rewards are proportional to the presented costs, input outcome ratios compares to others and whether outcomes match and stick to the expectations. Procedural justice- This is defined as the perceived fairness within the steps followed in making decisions. It is evaluated by gauging whether the steps are unbiased, consistent, correctable and accurate. It should also be open to scrutiny and inputs from other staff members. 3. As the chair of the committee, I will apply the principle of goal setting theory, which applies challenging but clear goals to help in the advancing of team’s motivation within the committee. As the chair, I will ensure that the goal is clear and measurable besides being succinct to the point. I will ensure that we set the timeline within which the fundraising must be cleared. The goal set must be challenging to the committee members to ensure that they are motivated besides ensuring that all team members are committed towards meeting the goals. I will also set up a feedback mechanism that will help in receiving information on the progress towards achieving a goal. Finally, as this will be a complex task, I will give the committee members enough time to easily overcome the learning curves. (Linke, 42) 4. Intrinsic rewards –These are the rewards that fulfills employees intrinsic motivators. Example includes; giving an employee a complex task, inclusion in making decisions, and giving a staff member a higher rank among others. These factors do not require increased fees but still an employee will be motivated. Intrinsic factors are qualitative in nature. Extrinsic rewards- These are those

Housing Services Delivery Essay Example | Topics and Well Written Essays - 1500 words

Housing Services Delivery - Essay Example The change of social housing organizations was hastened by a number of political, economical, and social factors. The first group of political accelerators comprises of governmental policies and regulations aimed at the increase of private housing in the UK. In the post-WWII period the housing policy of the UK government was focused on rebuilding, and providing new homes for the population. However, three reasons were hindering rebuilding processes: first, the government could only spend on housing what the country could afford; second, governmental investments in housing policy required better targeting on the neediest classes of population; and third, the efficient use of public spending were ought to be achieved through drawing in private funding (Collier and Luther, 2002). Thatcher's conservative policy on housing included two main phases: the extension of home ownership and the privatisation of rented housing. Through the increase of private housing among the population the gove rnment was able to focus on social groups, which could not afford to buy a house. Tax incentives, efficiency agenda, and right to buy policy was the next step to increase home ownership among the population: "The rights of council tenants and, later some housing association tenants, to buy their homes under the Right to Buy and Right to Acquire policies has enabled significant numbers of people (over 2 million) become owner occupiers" (Shelter, 2005). Nevertheless it had a negative impact on the supply of affordable housing for rent in many UK regions, "where the provision of new affordable homes has failed to keep pace with the numbers being lost through sales" (Shelter, 2005). The new problem has arisen: in 2002 Britain saw the lowest number of new houses built(measured in starts) since the end of World War II (Cameron, 2003). The housing supply was short, but moreover it mismatched the demand in the cities and regions. Thus, along with the stimulation of private housing governmental policies have created several obstacles on the development of UK housing marke t. Economic Factors Economical factors that lead to the shift from the welfare to contractual resource management in the housing industry identified in the literature are connected to further development of globalization. The success of Western economy, and the spread of the US way of life has entailed the rapid development of private sector in housing. It also has another effect. World Trade Organisation not only reduces barriers to international trade, but also increases the commercial exploitation of public services, including social housing. Pollock and Price (2000) indicate that market-orientated policies including privatisation of public service infrastructure through public-private partnerships is a part of a larger trend of privatization, and redefining of public goods as private responsibilities. The hopes of WTO are concerned with the commercial exploitation of public funding streams, and promoting the commercial interests of transnational corporations. Promotion of privatisation leads to the increase of competition among housing organisations as transatlantic players enter the housing market of the UK (Pollock and Price, 2000). On the one side it allows government to reduce funding to minimal, allowing private owners

My Experiences As a Nursing Student Essay Example | Topics and Well Written Essays - 1750 words - 11

My Experiences As a Nursing Student - Essay Example However, any medical professional can execute the process as long as he or she follows the protocols of medical operations (Callara, L. 2008, 57). The criterion (protocol) that must be followed, starts with checking the absence of possible air leaks into the bottle of a chest drain. Air leaks are usually noted when a patient breathes out using force or coughing with vigor, unlike normal exhalation. Secondly, a check-up for the fluid volume into the chest drains to establish if it is normal or low follows. If it minimal, say, 10ml per hour, chest drain is usually present (Daly, J. Speedy, S. & Jackson, D. 2009, 68). The establishments of a respiratory difficulty also define that there is a chest drain problem. Similarly, an increased bleeding risk that is associated with a decrease in coagulation also shows that there is a chest drain. Having established the explained steps, evidence from radiology for the absence of air or accumulation of fluid in the chest will be required before th e removal of chest drain process begins (Jacob, A. & Sonali, J. 2007, 29). My work in the whole chest drain process was to prepare the equipment used for the procedure and care for the patient since before and after the procedure, the patient is put under a closed –chest underwater seal that drains air and fluids to enhance the expansion of lungs (Basford, L. & Slevin, O. 2003, 39). The equipment I prepared for the doctor to carry out the procedure was a sterile dressing pack, gloves, stitch cutter, a solution for the cleansing of the skin, a clinical waste bag, a sterile swab, clamps and a dressing that is non-adherent (Quinn, F. 1998, 45). The predominant procedure is ensuring that the patient lies in an upright position to guarantee the expansion of lungs so that there is easy optimal drainage of air and fluids enhanced by gravity (Fagin, C. 2000, 40).  Ã‚  

Reading log (summary+respond) Article Example | Topics and Well Written Essays - 250 words

Reading log (summary+respond) - Article Example While calling shat a chat as a â€Å"Jet Set†, the author gives example of an American talking to a man from Middle East, which details the body language and postural adjustment of the two while each one retreats sometimes and takes a step forward the other times, during such conversation. Davis feels that engaging an interpreter will not solve the problem, as the person may not be able to translate the body language. The article signifies that same conversation can carry different meaning when the two people engaged in same are from different cultures, earth zones or gender. An example of interpreting the conversation would mean many Arabs liking to remain within a breath’s distance from each other as they aim at building close elations. However, Americans would like to maintain a space of at-least 18 inches when doing so. Davis has rightly pointed to the importance of interpreting the distance and space maintained by two people as they converse with each other. For example, Arabs find it useful and result-oriented if they are at a â€Å"spitting distance† with their listener, as they are able to build stronger relations with each other in this manner. On the other hand, such gesture would prove repelling for Americans, who may think it as an intrusion into their privacy.(Gardner) Gardner.S, â€Å"New Directions: Reading, Writing and Critical Thinking†, goggle books, nd, web, 3 March 2015:

Different Worlds in Family and Outside Essay Example | Topics and Well Written Essays - 1000 words

Different Worlds in Family and Outside - Essay Example I spent 11 years of my childhood in Iran and life offered me both its good and bad sides. I was a well-behaved child but at times I was a problem for many people including my teachers and fellow students in school. My parents from time to time taught me good habits especially respect for people regardless of ethnicity or race. They taught me the values of working hard and reaping where I sow and dedication to everything I set myself to do. Throughout my life, I have had many friends basically because of my good public relations skills. I have since left Iran and currently living in the United States where life seems quite different and to be successful one need to be more serious and focused. Technology, infrastructure, health services, and many other areas are more superior to those back in Iran. I was however not that badly off in respect to technology together with my brother and this has helped me to cope well with the new life. My brother and I have had numerous conflicts with o ur parents based on the decisions they make or we make concerning our lives. They are obviously from a different generation that does not understand the world has changed to a more liberal society. All the same, disrespect to one’s parents is a taboo as dictated by our culture... I have no reason to hold on to my cultural orientations in this new land as other immigrants seem to have fully integrated with the American way of life. I have a goal of ensuring that my life in the United States will translate to a good life for the rest of my family members wherever they are. Am thankful to my family for raising me to be the person I am today. They taught me how to speak, walk and above all, how to be a good human being. I learned how to cooperate with others while doing family duties and this made family life quite exciting. I also learned how to love and dedicate myself to family matters, communicate well and respect all especially older people. Our society does not allow women to contribute towards family bills as a sign of respect to them. I was taught to help those how are in need. I am also thankful to my American high school classmates who helped me to learn English since it was a new and difficult language for me. They made it interesting to learn about ne w culture and behaviors.

Physics in the Past Essay Example for Free

Physics in the Past Essay One hundred years ago, in a poky apartment in Bern, Switzerland, Albert Einstein, then just a 26-year-old patent office clerk still working part-time towards his PhD, published five ground breaking scientific papers. Each of these papers, written during Einsteins annus mirabilis , has become a classic in the history of science: On a Heuristic Viewpoint Concerning the Production and Transformation of Light , which discusses optical photons and photoelectric effects. Molecular and New Measurement , which deduces the mathematical equation for calculating the speed of the diffusion of molecules. On the Motion of Small Particles Suspended in Stationary Liquids Required by the Molecular-Kinetic Theory of Heat , which provides proof for the existence of atoms. Does the Inertia of a Body Depend upon its Internal Energy, which proposes the idea for two-way transformation between mass and energy according to the special theory of relativity. On the Electrodynamics of Moving Bodies , which proposes a new theory on the relationship between time and space. This paper served as the foundation for the theory of relativity. The contemporary physics revolution, based on the theory of relativity and quantum theory, has led science into a new era. Starting from this, human exploration has extended to the boundless universe, to the distant origin of the cosmos and to the microscopic structure of objects previously unknown to mankind. Contemporary physics revolution has also spurred revolution in life sciences and geosciences in the last years. All these have changed mankinds outlook on matter, time, space, life and the universe. Moreover, this contemporary physics revolution has also given birth to technological physics including nuclear energy, semiconductors, laser, new materials such as with superconductivity, and fostered rapid development of a wide range of new technologies that have changed the methods of our industrial production and our ways of life while bringing the world to the new knowledge economics era. Founders of contemporary physics, Einstein the most outstanding among them, are undoubtedly epoch figures in the history of science and the history of mankind. It is therefore both of significance and importance for us to commemorate them in our reflections on the development of physics in the last one hundred years not just to express our gratitude but to draw inspiration from their achievements and build on their legacy to create a better future for all humankind. 1. The inconsistency between experiments and theories gave birth to new science concepts At the end of the 19 th century, people were still intoxicated with the interpretations given by classical physics. Some even held that there was not much more to do in physics. It was under such a state that the discovery of some physical phenomena revealed the limitations of interpretations given by classical physics. High-temperature measurement technology, called for by the rapid development of the metallurgical industry, led to research in thermal radiation. In the mid 19 th century, Germany emerged as the birthplace for research in this field. Thermal radiation refers to the electromagnetic waves emitted by matter when heated and largely depends on the temperature of the matter itself. Maxwells electromagnetic field theory regards light as an electromagnetic phenomenon. Although this explains the propagation of light, it does not explain the emission and reception of thermal radiation. G. R. Kirchhoff (1824—1887) advanced to use black body as an ideal body for research on thermal radiation (1859). W. Wien (1864-1928) confirmed that it is possible to regard the thermal radiation performance of a pored cavity as a black body (1896). A series of experiments demonstrated that the density of the energy emitted by such black body is related to its temperature and not to its shape or materials. Theoretical explanation of the energy spectrum curve of a black body became an essential issue in research on thermal radiation at the time. Based on the general principle of thermal mechanics and some special assumptions, Wien developed a formula to determine the energy density associated with particular wavelengths for any given temperature of a radiating black body (1896). Max Plank joined research on heat radiation during the same period. To explain the energy distribution curve of the radiated light spectrum of a black body, Plank developed a formula. It was not until 1900 that scientists proved the veracity of the formula through experimentation. Plancks formula requires that the energy emitted or absorbed by black body is the energy quanta that determine its amount. This implies that energy, like a matter, has the properties of particles, i. e. , energy also has separability and discreteness. In 1905, Einstein extended the concept of quanta to the propagation of light and proposed the light quantum theory, successfully using it to explain photoelectric effect. In 1913, the Danish physicist N.  Bohr (1885 – 1962) extended the concept of quanta to atoms, and established a quantum structural model for atoms based on the discreteness hypothesis of the energy state of atoms. Dissatisfied with the lack of self- sufficiency of Bohrs atom theory, the German physicist Werner Karl Heisenberg (1901—1976) developed matrix mechanics in 1925 by starting directly from a priori data on the frequency and intensity of spectrum of visible light. The following year, the Austrian physicist E. Schr? dinger (1892—1961) improved the wave-particle duality matter wave theory of L. V. de Broglie (1892—1994), leading to wave mechanics. Subsequent research proved the mathematical equivalence of both matrix mechanics and wave mechanics. The American physicist R. P. Feynman (1918 – 1988) later developed the third equivalent path integral quantum mechanics. It is until this period of time that quantum theory was established to its robust architecture. The thermal radiation hypothesis became the logical starting point for the birth of quantum theory. The quantum of energy concept was developed in 1900. As a result of its development and extended application, quantum mechanics, which describes the motion of subatomic particles, took form in the 1920s. The combination of quantum mechanics with the special theory of relativity gave birth to quantum field theory, which describes the generation and annihilation of subatomic particles. Development of quantum field theory has experienced three stages: classical quantum field theory (symmetrical), standard quantum field theory (non-symmetrical) and super-symmetrical quantum field theory. It has not only revealed the secrets of the subatomic world invisible to the naked eye, but deepened our understanding of the evolution of the universe and revolutionized the way people perceive the world. Quantum field theory, moreover, has set the stage for a series of key technological breakthroughs. It has been demonstrated from the experimental research on a black body radiation to the advancement of the quantum theory that science is, after all, still a positivistic knowledge system. That is, as long as a theory is not consistent with rigorous experimental results, a scientist has all the reasons to doubt the theory itself no matter how authoritative the theory it may be, no matter how many people have upheld it, and no matter how many years it has been embraced. At the same time, we should understand that the ultimate results of scientific research should give theoretical interpretation of natural phenomena discovered while this requires not only rigorous and scientific attitude and rational challenging spirit, but also profound thinking ability and deliberate analysis ability and theoretical reasoning ability. 2. Key breakthroughs in science hinge upon distillation of scientific research questions The theory of relativity advanced by Albert Einstein (1879 – 1955) is a brand new outlook on space and time. The key scientific question for the theory of relativity lies in simultaneous relativity. The theory of relativity has given justified interpretations about the relationship between time and space, the relationship between space and distribution of matters, and the relationship between matters and energy. In the process, it transformed the knowledge system of classical physics dating back to Sir Isaac Newton(1642-1727). The theory of relativity, together with quantum theory, not only formed the foundation for development of physics in the 20 th century but also raised our understanding of the nature to an entirely new level, thus having a profound effect on the way of thinking and perceptions of the world. The founding of the theory of relativity originated from the crisis of Ether, a hypothesized carrier for electromagnetic waves. The experiment report On the Relative Motion between the Earth and Light Ether published by the American physicist A. A. Michelson (1852—1931), revealed that the theory of relativity, which is universally correct in the reference to Newtonian mechanics, is incorrect in Maxwells electromagnetic field theory. Both the Dutch physicist H. A. Lorentz (1853—1928) and the French physicist J. H. Poincare (1854—1912) attempted to solve this contradiction by maintaining the Ether hypothesis. Lorentz proved that the earth system and Ether follow the same law at the first-order approximation by incorporating â€Å"length contraction† (1892), â€Å"regional time† (1895) and a new conversion relationship (1904) while the relativity principle developed by Poincare and the conversion group (1905) developed by Lorentz emphasized the universal validity of the relativity principle. Although both deviated from the framework of classical physics lay at the doorstep to the theory of relativity,but it was left to Albert Einstein to turn the key and push the door open. Einstein believed that the electromagnetic field had an independent physical existence and held the Ether hypothesis to be superfluous. His most important contribution may reside inside in the fact that he raised the critical scientific problem of â€Å"simultaneous relativity†. In On the Electrodynamics of Moving Bodies (1905), Einstein claimed that two events happening simultaneously in the same location do not depend on the observations of the observers; yet two events happening simultaneously at two different locations do depend on their observations. It would be meaningful only if it is indicated clearly that the events are relative to which observer. We could hardly observe such relativity of simultaneity in our daily lives because this can be discovered only when the speed of an observer is close to the speed of light. Starting from the simultaneity of relativity concept, Einstein deducted the main conclusions for the theory of special relativity through two principles: constancy of the speed of light and relativity. The general theory of relativity (1915) and the unified field theory are further developments of the theory of special relativity. Through his trilogy research on the theory of relativity, Einstein revealed to his physics colleagues his extraordinary creativity in scientific thinking. 3. Scientific imagination requires the support of rigorous experimental evidence In the year following the publication of his general theory, Einstein publishedObservations Made on Cosmology Based on the General Theory of Relativity (1917), which marked the birth of modern cosmology. Although Einsteins cosmological model followed the static Newtonian view on the universe, its field theory lays the groundwork for the existence of dynamic solutions to cosmology. The Dutch astronomer W. de Sitter (1878-1933), the Russian mathematician A. Friedmann(1888-1925) and the Belgian physicist G. Lemaitre(1894—1966) published the expanding universe theory in 1917, 1922 and 1927, respectively. The ‘red shift effect observed by the American astronomer Edwin Hubble (1889-1953) offered strong support for the expanding universe theory. Drawing on the expanding universe theory, the Russian American physicist G. Gamov (1904—1968), formulated the idea of a hot explosion of matter and energy at the time of the origin of the universe by incorporating knowledge in nuclear physics. His student R. A. Alpher(1921-) and others further derived in 1948, that the big bang explosion took place about 15 billion to 20 billion years ago and hypothesized that remains from the big bang explosion may still be circulating in the universe, presenting 5K cosmological background radiation. In 1964, two American radio engineers, A.A. Penzias (1933-) and R. W. Wilson (1936-), discovered evenly distributed isotropic cosmic microwave background radiation while tracing the source of radio noise that was interfering with the development of a communications program involving satellites. This microwave radiation is coincidentally equivalent to 3. 5K blackbody radiation. This discovery is regarded as a confirmation of the cosmic background radiation as a result of the big bang explosion. The latter years witnessed the rise of the big bang theory, which developed as the â€Å"standard model† for cosmology. In the early of 20 th century, Einstein listed the origin of a geomagnetic field as one of the five major challenges in physics. However, not until the 1960s, after the seismic wave method confirmed the layered structure of the earth, did scientists devise the â€Å"self-exciting dynamo† hypothesis, the full scientific endorsement of which awaited evidence from differential core-mantle movement obtained in 1995. Increased knowledge on the inner structure of the solid earth mainly relies on the seismic wave method. The concept of layered structure of the earth has gradually formed through analysis of variation of the seismic wave passing through the inner structure of the earth. The Croatian geophysicist, A. Mohorovi? ie (1857—1936), discovered the interface between the earths crust and mantle (1909); The German-American seismologist, B. Gutenberg (1889—1960), discovered the interface between the earths mantle and the core (1914); and the Dutch seismologist I. Lehmann discovered the interface between the earths liquid outer and solid inner core (1914). The New Zealander physicist K. E. Bullen proposed the layered model of the earth (1940). The differential core-mantle revolving movement, a hypothesis designed to explain the origin of the geomagnetic field, was later used as a mechanism to explain the inversion of the polarity of geomagnetism. However, no direct scientific evidence had been found. Based on their analysis of recorded data for 38 earthquakes, which took place between 1967 to 1995 near the Sandwich Islands close to the South Pole in South America, Dawn (Xiaodong) Song and Paul G.  Richards, Columbia University, in US, measured the speed of seismic wave transmitted from the earths inner core to a seismographic station in Alaska near the North Pole. They found that the time it took seismic wave to travel from the South Pole to the North Pole had been reduced by 0. 3 seconds over the previous years. This confirms that the earths inner core is revolving slightly faster than its crust and the mantle—indeed the earths inner core will turn one extra circle in about 300 to 400 years. Dr.  Su Weijia, another Chinese scholar residing in the US, and Dziewonski, an American seismologist, reached a similar conclusion based on analyses of seismic data from about 2000 seismographic stations around the globe. Based on their computation, the revolving speed of the earths inner core is even faster, 20 – 30 degrees just over the timeframe 1969 to 1973. It can be seen from the propositions and improvement of the theory of relativity by Einstein, the big bang theory and the geomagnetic theory that while it is important to solve problems in development of science, it seems even more important to raise key questions in science. Raising questions is the prelude to scientific research. More importantly, raising key questions reveals the creativity associated with science. Sometimes a key question in science leads to new fields and new research directions. To ask the right questions, one must have a through understanding of existing knowledge, a love for truth that transcends respect for authority, and fine observational skills and creative thinking. At the same time, one must be rational bold and confident.

Principles Underpinning A Rewards Strategy

Principles Underpinning A Rewards Strategy Various scholars/writers contributed to the study of reward management strategy, by providing a wealth of information to increase the body of knowledge. This section therefore contains the views of them on the subject reward management strategy and the various method adopted. The views of these authors will be related to this current study. This Literature Review will be divided into the five main parts of the study: Reward Management Performance Management Motivation Staff Retention Labour Turnover The areas being analysed will aid in understanding whether the organisations reward management strategy is effective, which is reflected in labour turnover and the ability of the organisation to retain and motivate staff of the organisation. This literature therefore sought to ` critically analyze other views on the main areas of the research title, compare and contrast them and use the views/perspectives of the published work by other accredited authors to guide and inform this present study. 2.2 Reward Management What is Reward? Bratton and Gold (1999, p. 238) defined reward in the following terms, Reward refers to all forms financial returns and tangible services and benefits employees receive as part of an employment relationship. According to Thompson and Martin (2005, p. 229) reward are an important motivator, but it is important to appreciate that an individual may feel rewarded by things other than money or promotion. The demands and responsibility of a job, and the freedom that people are given to decide how to do things, can be rewarding. Berry, J. (2000, p. 45-46) as cited in Henley Management College (2000, p. 23) advocates that reward may very well be more than just pay and benefits, but will increasingly be base on skills and knowledge and will be innovative. In the context of the studies Philbean and Corbridge (2002, p. 204) argues that reward encompasses pay, remuneration and compensation. It represents a portfolio of managerial practices where financial and non financial elements are flexibly directed at enabling and rewarding employees who add value in the interests of competitive advantage, he went further to say that reward is total remuneration concept of pay and benefit together with non- financial recognition and motivation applied in a contemporary context. What is Reward Management? Reward Management is about how people are rewarded in accordance with their value to an organisation. It is concerned with both financial and non-financial rewards and embraces the philosophies, strategies, policies, plans and procedures used by organisations to develop and maintain reward systems. Armstrong (2001, p. 126) This statement underlines the importance of reward management to an organisation success. According to Beardwell and Holden (2004, p. 501) reward management has often been viewed as the poor relation of human resources management concerned with systems, figures and procedures. Another definition states Reward Managements is one of the central pillars of human resources management. While the term reward management is problematic, we consider that the term best captures the current changes in management assumptions and practice about pay. Bratton and Gold (1999, p. 238) Principles Objectives of Reward Management The three principal objectives of reward management as cited in Bratton and Gold (1999, p. 238) are to: Attract and retain suitable employees Maintain or improve levels of employee performance Comply with employment legislation and regulations These objectives have to be achieved within an agreed budget for rewards. First, the new and must be competitive to encourage membership of the organisation. In other words, it must attract and retain qualified and competent people to the organisation. Reward that are perceived by prospective members to be inadequate or inequitable will make it difficult for the organisation to attract the types of people necessary for success. Second, reward systems are designed and managed to improve productivity and control labour cost. The question of what motivates employees to perform effectively is difficult to answer. Among practising managers there is a wide spread conviction that pay alone motivates workers. In comparison to this Thorpe and Homan (2000, p. 12) advocates that the principal objectives of reward management are to: Minimize expenditure on wages and salaries over the long term; Attract and retain staff of the desired calibre, experience and qualifications; Motivate the workforce so as to maximize organisational performance; Direct effort and enthusiasm in specific directions and to encourage particular types of employee behaviour; Underpin and facilitate the management of organisation change; To help us examine the complexities of pay, we have developed a framework of reward management. Figure 2.1: illustrates a model for reward management that contains three basic elements, internal equity, external competitiveness, and the objectives. Our model shows two broad areas that any organization must consider in reward management, internal equity and external competitiveness. Internal equity refers to the pay relationship among jobs within a single organisation. This is translated into practice by the basic techniques of reward management, job analysis, job evaluation and performance appraisal. The focus is on comparing jobs and individuals in terms of their relative contributions to the organizations objectives. Reward Management Strategies According to Stephen Taylor (2000) as cited in Thorpe and Homan (2000, p. 11), there are two key questions, which an organisation has to ask when formulating reward strategies and policies, they are: how much should be paid to each employee and what form should that payment take? There is nevertheless a large choice of payment systems and methods available for management to choose from and many methods of determining pay levels available for manages to choose from. However, Taylor (2000) as cited in Thorpe and Homan (2000, p: 12) states the principal determining factor when deciding on rewards for employees of the organization are the objectives the organization has for their HR policies and reward systems in particular. In the context of the studies Armstrong and Lybrand (1992, p. 41) states that reward strategy is concerned with: developing a positive, performance orientated culture; underpinning the organisations values, especially those relating to excellence, innovation, performance, teamwork and quality; conveying a message to prospective high-calibre employees that the organisation will satisfy their reward expectations; ensuring that the right mix and level of reward are provided inline with the employees and the environment in which the business operates; linking reward policies, systems and procedures to the key business and human resources strategies for innovations, growth development and the pursuit of excellence; also developing a strong orientation toward levels of performance throughout the organisation by recognising successful performance and increase in levels of competence, thus contributing to the processes of empowering, enabling and energising all employees; and indicating to existing employees what types of behaviour will be rewarded and how this will be place, thus increasing motivation and commitment and improving performance. In the same vein, Armstrong (2001) also states in order for organisations to achieve their strategic objectives it must have a skilled, competent, committed and well motivated workforce which is supported by a reward strategy that: flows from and fits the business strategy; links reward to performance; aligns individual and organisational competencies; integrates with other human resources management and development strategies; and evolves from consultation with key stakeholders. A useful way of conceptualizing different reward philosophies is provided by Rajan (1997: 75). Figure 2.2 shows how reward can be categorized along two dimensions, identifying rewards that are money-related and non money-related; and rewards that are group-related (available to all or most staff) or individual-related. Thus Rajan (1997) argues that there are four types of approach to reward. 1) Types of reward Group-related 2) Security -driven Tradition-driven Lifetime jobs Cost of living increases Corporate prestige à ¢Ã¢â€š ¬Ã‚ ¢Perks Non-money-related Money-related 3) Employability-driven: Contribution-driven Training and development Performance-related pay Personal career plans Merit bonus Individual-related Source: Rajan (1997: 75). Reproduced with the permission of Eclipse Group Limited cited in Beardwell, and Holden, (2001), Human Resources Management, A Contemporary Approach, Third Edition, Pearson Educational Limited p. 511 Types of reward are important in terms of motivation where by different types of reward may motivate an individual; the diagram above illustrates this by highlighting different elements. Motivation can take the form of money-related or non-money related an individual may become motivated by security driven knowing that they have a lifetime /permanent job as compare to those that prefer to become motivate by money-related issues such as cost of living or perks offered by the organisation. On the other hand their are employees whose motivation stems from employability driven that is motivated through the use of training and development or personal career path, in comparison to those that are contribution driven, believing performance related pay or merit bonus are better form of motivation. Best Practice versus Best Fit Approach to HR Management The best fit approach stresses significantly on the strategic alignment of HR policies and ensuring that it fits the objectives of the organization, while the best in terms of attracting, retaining and motivating human beings. Taylor 2000 as cited in Thorpe and Homan (2000, p. 15). There are however significant challenges to the best fit approach to HRM. According to Walton, 1985; Guest, 1987 as cited in Thorpe and Homan (2000, p. 16) There is nothing new about challenges to the best fit perspectives from those arguing that some form of best practice approach to HRM is more likely to lead to performance improvements at the organizational level in most all circumstances. Maund (2002) states there are a number of words used to describe what employees receive for their efforts at work. All the words  commonly used can be housed under one word; payment. Foot and Hook (1999, p. 123) defines Payment as the most straight forward of à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ terms and seems to be the most appropriate terms to use. It can include monetary or non-monetary payment. New Pay and Old Pay Systems In addition to reward, Lawler, 1995; Armstrong and Murlis, 1998; Lewis, 1998) as cited in Philbean and Corbridge (2002, p. 205) reveals that New pay and its juxtaposed stereotypical opposite of Old pay are concepts which are used to distinguish between contemporary and traditional reward practices. Old pay is characterized by bureaucratic salary administration, organisational hierarchy, rigid job evaluation and grading system, incremental progression, lack of horizontal integration with other HR activities and the detachment of pay from the strategic objectives of the organisation. The primary concerns of old pay are fairness, consistency, equity and transparency. This is arguably more compatible with the traditional organisation structures and employment relationships of the 1970s and 1980s. In the twenty-first century old pay, it is alleged, will inhibit organisational responsiveness and development in more turbulent organisational environments. New pay can be viewed as a functional adaptation to change in the external context and increasing competitive pressures. There have been significant changes in the reward strategies adopted by organizations in Europe, moving from the traditional based payment system to Wheat Howler (1990) called new pay. This new pay has introduced more flexible and variable rewards systems. This consisted of: Bonuses; Performance Related pay; Promotion and Career Advancement; and Performance Related Pay pay based on performance at work, based on the acquisition of new skills and knowledge. Maund (2002) argues that new pay is seen as being more suitable for fast moving organizations of the 21st Century. This will form the analysis of the organization as to determine whether the organization uses new pay as compared with traditional forms of pay. In comparison Stacey (1996), states if the rewards are suitable it will stimulate individuals to make actions which are directly relevant to the strategy of the organization Stacey 1990 as cited in Maund (2002, p. 439) implies this will result in the aims of the organization being realized through employees. Bowey and Thorpe as cited in Thorpe and Homan (2000, p. 81) in order for remuneration systems to be effective there needs to be a sound understanding of how people at work are motivated. This forms the basis of the next section of the literature review, which focuses on method used to encourage motivation of employees that is performance. Performance Management Baron and Armstrong, (1998: 38-39) as cited in Beardwell and Holden (2001, p. 538) states that performance management can be defined as a strategic and integrated approach to increasing the effectiveness of organisations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors, and also can be seen as a continuous process involving reviews that focus on the future rather than the past In the same vein, Bartol and Martin (1998, p. 529) states that performance management focus on ensuring that specific goals that have been set are achieved. Henley Management College (2000, p. 25) states that performance management is about people and motivation the system can get in the way, it further states that performance management is a management process and the key if the relationship between a manager and his her people performance management system are often an elaborate way to foul that up. Hendry et al., (1997) as cited in Beardwell and Holden (2001, p. 538), advocates that performance management is not simply the appraisal of individual performance: it is an integrated and continuous process that develops, communicates and enables the future direction, core competences and value of the organisation, and helps to create an horizon of understanding. It identifies who or what delivers the critical performance with respect to business strategy and objectives and ensures that performance is successfully carried out. Effective performance ensures that employees and managers understand each other expectations, and how corporate strategy and objectives impact on their own context- their roles, behaviours, relationships and interactions, reward future. Performance management is a holistic process that ensures that the following are developed and effectively carried out: setting of corporate, department, team and individual objectives; performance appraisal system; reward strategies and schemes; training and development strategies and plans; feedback, communication and coaching; individual career planning; mechanisms for monitoring the effectiveness of performance management system and interventions. Thus performance management incorporates the effective day to day management and support of people, and is not simply concerned with appraisal forms, procedures and interviews or the paternalistic evaluation by superior of a subordinates performance. Employee commitment and performance are secured through a mutually supportive strategy of reward-driven integration, developmental integration and culture management. Figure 2.3: outlines the steps of systematic and integrated performance management. Figure 2.3: The performance management cycle Business Strategy Training and development 1. Setting direction and planning Resourcing 3.Reviewing 2. Coaching and support Reward decision Employee relations Source: Beardwell and Holden (2001), Human Resources Management, A Contemporary Approach, Third Edition, Pearson Educational Limited  p. 538 However it is argued that for performance management to be effective these activities should be carried out throughout the year as normal part of the interaction between employee and manager, and not simply through the annual performance appraisal. All these activities should involve joint problem solving and the acceptance of joint responsibility for action. Linking Performance appraisal with Pay Performance appraisal is seen as a major element that forms the bases of any performance management system. Foot and Hook (2002, p. 241) states performance appraisal basically entails trying to reward employees for their past work, while hoping that the incentive of a reward will encourage other employees also to strive to work harder in the future. Bartol and Martin (1998, p. 331) defines performance appraisal as the process of defining expectations for employee performance, measuring, evaluating, and recording employee performance relative to those expectations; and providing feedback to the employee. The link between individual behaviour and organisational performance, effectively linking rewards to a performance management system requires a clear line of sight between individual behaviour and corporate performance. It also requires a view of corporate performance which looks at ends as well as means, and which is not limited to accounting measures. Foot and Hook (2002, p. 242) further states that it is difficult to imagine that a person being appraised is likely to admit to any development need, or be willing to accept any help in their performance, if their salary increase depends on a good appraisal. It is therefore recommended that employers should in general try to keep reward considerations separate from the other areas of appraisal. In spite of this advice and research evidence which suggests that performance rated pay (PRP does not always motivate everyone in a work force, many employers think that the offer of an incentive or reward is the only way to motivate employees to work harder, and this is often their main reason for introducing performance appraisal. However Foot and Hook (2002, p. 242) also went further in stating that great care needs to be taken if appraisal systems are linked to pay. It will be especially important to ensure that the criteria being appraised are objective and free of unfair bias, and that there are genuine opportunities for all employees to be rewarded for their efforts. Therefore the link between performance and pay is considered Performance Related Pay Torrington and hall, (1996) as cited in Philbean and Corbridge (2002, p. 219) states performance related pay is some attempt to relate pay to performance is the dominant feature of current reward strategies. According to (Swabe, 1989: 17) as cited in Beardwell and Holden (2001, p. 523) performance related pay can be defined as: a system in which an individuals increase in salary is solely or mainly dependant on his/ her appraisal or merit rating. The critics of performance related pay (PRP) cited several advantages and disadvantages, Beardwell and Holden (2001 p. 523) states the possible reasons for introducing performance related pay (PRP): to increase the motivation of employees; to encourage certain behaviours; to help in recruitment and retention; to facilitate change in organisational culture; to encourage the internalisation of performance norms; to weaken trade union power; increased role of the line manager; greater financial control and value for money; a moral justification; encouragement of flexibility. Hague (1996) argues that performance related pay can demotivate staff rather than reward performance. Beardwell and Holden (2001, p. 526) states the possible problems with performance related pay (PRP): it is not a guaranteed motivator; it is difficult to produce realistic performance measures and as a result, ratings may be unfair, subjective and consistent; it places undue emphasis on individual performance which can be damaging to teamwork; it can produce poor quality performance as people concentrate on achieving quantitative targets; it leads to short-termism in the pursuit of quick results to the detriment of longer term strategic goals; reinforcement of status, control and power differences; financial constraints; crowding out intrinsic motivation. The underlying theoretical basis for performance related pay is motivation theory. Content theories, such as those of Maslow (1943,1987) and Herzberg (1959), draw attention to pay as one of many sources of human need. The satisfaction of this need can contribute to motivation at work, but the relative importance of pay as a motivator will vary with individual circumstances. More specific to performance related pay are the process theories of equity (Adams, 1965) and the expectancy theory (Porter and Lawler, 1958; Lawler, 1973; Vroom, 1964) and it is useful to have an understanding of these. This will form the basis of the next section of the literature review, which will focus on the motivation of employees. Motivation As a consequence of competitive pressure, organisations encourage their employees to increase the added value and also increase their performance beyond the acceptable standard, As a result, the study of employee behaviour and more particularly, motivation, remains a real managerial concern. Maund (1999, p. 87) defines motivation as the process by which an individual wants and chooses to engage in certain specified behaviours. Cole (1995: 119) as cited in Cole (2000, p. 28) states Motivation is the term used to describe those processes, both instinctive and rational, by which people seek to satisfy the basic drives, perceived needs and personal goals, which trigger human behaviour. There are several theories that help us to identify specific factors that motivate people including the content or needs theory, the two-factor model and the cognitive theory. The underlying assumption is that individuals have needs that must be satisfied. Motivational Concepts Motivation as revealed by Abraham Maslow (1943) is highly individualistic and is either determined by intrinsic or extrinsic factors. According to Maslow human beings are motivated by different motivators at each stage of there life. Maslow presented a Hierarchy model of motivation which consisted of Physiological needs at the lowest point, next was the safety needs, then love needs, esteem needs and finally the highest needs was the self actualization needs as depicted in Figure 2.4 below. By Managers understanding the physiological, safely, love, esteem and self actualization needs, they can therefore appeal to the individual employees present needs in life therefore motivating them. Douglas Mc Gregor (1960) has identified the theory X and theory Y worker, this theory differs significantly to Maslow (1943) theory in that Maslows theory focuses on the needs of individuals, while Mc Gregors theory focused on the behaviour of employees at work. According to Mc Gregor the theory X worker has an natural dislike for work and will avoid it at any time possible on the other hand the theory Y worker as conductive to problem solving techniques and given the opportunity will not only take but desire responsibility. In order for mangers to put theory Y worker into practice they must use the four basic aspects of the theory Y worker, they are: Decentralization and Delegation this would give employees a sense of freedom to act. Job Enlargement this would encourage employees to accept responsibilities. Participation and Consultation Management this would allow employees to voice there opinions of matters affecting them and encourage creativity. Performance Appraisal this should be done to assess management abilities. Frederick Herzberg presented a theory similar to Mc Gregor, which focused on the needs of employees at work, Herzberg presented a two factor theory that identified two sets of needs of individuals at work the need to avoid pain and discomfort and the need to develop Psychologically, he identified two areas that are of concern to the organization, first was hygiene factors such as job security, working condition, status and administrative concerns, the second area of concern to mangers was motivators; recognition from supervisors, the opportunity for growth and advancement, if managers were able to avoid pain and discomfort such are by fostering good employees relations, providing safe and comfortable working conditions, managers will be able to motivate employees. However, this study gives little insight into how managers can motivate manual or unskilled workers. Adams (1965) brought forward the Equity theory of motivation, this theory of motivation differs significantly as it attempts to show how individuals determine the amount of effort that needs to be exerted. According to Adams an employee desires to be treated fairly by the organization, they wish to be treated fairly compared to others and to avoid inequity. Employees evaluate rewards by a comparison with others, if an employee perceives his contribution to be the same as the person they compare themselves with (referent) then a state of equity is perceived, if an employee however sees there self as being unequal, a state of inequity arises. In the context of the studies Bartol and Martin (1998, p. 397) states that equity theory is a theory that argues that we prefer situations of balance, or equity, which exists when we perceive the ratio of our inputs and outcomes to be equal to the ratio of inputs and outcomes for a comparison other. Thorpe and Homan (2000, p. 22), the major determ inant of satisfaction at work is the extent to which workers judge the outputs that accrue from their work (such as pay levels, pay increases, promotions) to be distributed equitably. We are less interested in how far these outputs equate to our inputs (effort, skill, experience, qualifications) than we are in the extent to which the ratio between the two compares with that achieved by others. Rensis Likert (1976) also saw extrinsic rewards as most important in motivating employees to achieve organizational rewards. According to Likert (1976): Motivation is by economic rewards based on goals which have been set in participation. Likert claimed that in order for organizations to achieve maximum profit, good labour relations and high productivity, every organization must make best use of their human assets. It is through effective human resources management that productivity will be increased. Likert identified the participation group system which is the optimum solution, were leadership is by superiors who have complete confidence in their subordinates. Fowler and Lawler (1968) modified Vrooms (1964) expectancy theory and developed process theories of motivation as they consider the relationship between effort, performance and reward for each individual. The principles of the Fowler and Lawler model are as follows: Employees value intrinsic arising from the work itself as well as extrinsic motivation such as bonus or rewards; Effort will be increased if employees believe that good performance will lead to the achievement of desired rewards; Employees must have the opportunity, resources and effective management to carry out tasks; Expectations and objectives need to be communicated so employees know what is expected of them; 2.5 Staff Retention Browell (2003, p. 64) simply defined staff retention as keeping those members of staff that one wants to keep and not loosing them from the organization, for whatever reasons, but especially to competitors. According to Browell (2003), Wages and Salaries are insufficient to maintain staff successfully within an organization in the long term, organizations in retaining staff must introduce a successful staff retention strategy, as there failure to do so can result in demotivated staff and a high level of labour turnover. Hannagan (2003, p. 176), states A successful staff retention plan must contain a competitive rewards strategy, proper recruitment standards must be set and there must be an effective appropriate selection process, the training and development process must include a good induction process and must have room for development for both the organization and the individual employees. There must be flexible working conditions and ensure the leaders of the organizations have the skills necessary to manage effectively. Training and development is seen as an important implementation tool by many authors, according to Hussey (1991) as cited in Maund (2002, p. 440) training and development acts as a motivator and provides the skills necessary for strategy implementation, In the same vein Buckingham (2000), cited in Hannagan (2003, p. 176) employees are more likely to remain with an organization if they believe that their managers show interest and concern for them. Browell (2003) states, organizations need to compare the costs of staff going with the cost of them staying and determine whether it will have an adverse effect on the rest of the organization if they leave. Henley Management College (2000, p. 21), recent IDS study showed the average turnover rate with considerable variation between industries and sectors are high, however the financial costs of this turnover can be up to 150% of salary for key staff. Add in the non-financial costs, including loss of key skill morale and the overall price of a departure to an organisation can be considerable. Because of these cost companies should carry out external benchmarking, and gather information on internal factors affecting turnover, such as monitoring wastage rates, and carrying out exit interviews and attitude surveys. The following measures may help to improve staff retention: pay competitive rates and consider other types of compensation such as retention bonuses and share-options schemes; put together an attractive employee benefits package; recruit the right people in the first place; pay more attention to induction processes, especially in the critical first few weeks; provide career paths, more interesting work and support for personal development; offer more flexible work options and implement family friendly policies as work-life balance issues come to the fore; provide good line management; evaluate the effectiveness of the measure taken. Not all employee turnover, though, is a bad thing. An acceptable level, dependant on the organization and the labour market, allows the entry of new blood and ideas, and creates new opportunities for careers, staff development, and restructuring. Maund (2002), there are three (3) particular areas that an organization must monitor in order for them to maintain motivated and loyal staff, they are: The Terms and Conditions of employment must be such that employees feel valued by the organization, these terms and conditions of employment includes both the remunerations and conditions at work w