Statement of work Essay Example | Topics and Well Written Essays - 750 words

Statement of work - Essay ExampleThe firm has an annual budget of four million dollars and employs a staff of ab emerge 50 employees. Salaries, benefits, and rent constitute nearly 80% of the $4 million dollar budget. Objective The objective is to carry out a fiscal annual audit of the Purchasers resources in accordance with the rules and principles set by the government. Also, the Contractor shall analyze and evaluate the internal control. totally the basic financial statements have to be audited by the Contractor that present the Purchasers revenues, expenses, and balance. All the currencies shall be expressed in US Dollars including the statements, schedules and the greet rates. Scope The Contractor shall supply all the labor, resources, services that are necessary to perform the annual audit of the Purchaser. An audit of the Purchasers financial statements should be performed by the Contractor in accordance with the generally accepted rules and standards laid stilt by the gov ernment for auditing. For the above requirements to be met, the Contractor shall use the steerage provided by the Presidents Council to assist the auditing. The Contractor must examine the financial statements that include the revenues received from programs that have been funded by the Purchasers company. ... If the financial systems require the application of any information systems then the Contractor shall obtain an appreciation of the working of the system considering the internal control and carry out tests to get along sure that the system is functioning as intended. In the case of non-operational controls, the Contractor shall also provide evidence to support why any control is not functioning as it should, and shall provide recommendations to improve the system. The above standards shall also be followed by the Contractor while preparing reports including an opinion report, internal control report and reports analyzing the concurrence with rules and regulations. Require ments for Financial Audits The Audit Performance An audit of all the financial statements of the Purchasers company shall be performed by the Contractor according to auditing principles laid down by the government and based on the guidance issued by the government relating auditing requirements. The same standards shall be followed while preparing reports and other documentations. All the reports shall be incorporated in one Performance Report that shall be received by October 15th, 2013. Documentation The annual financial audit documentation must include a) A testis work plan including a schedule for completing the audit at each step, the staff that have been assigned for the audit, and a schedule of the site visits. b) An military rating of the risks including general risk, control risk, fraud risk and so on. c) The set of audit procedures being followed d) The testing plans e) A memo summarizing the conclusions reached on the findings Internal Control Requirements An understandi ng of the internal controls shall be acquired in order to plan the audit. A detection risk should be

Controversial Images in Art Essay Example | Topics and Well Written Essays - 500 words

Controversial Images in Art - Essay ExampleThis art seems to have created a standoff betwixt the Catholic League and Piss Christ artist Andres Serrano that may have come to impermanent and anticlimactic silence. This figure of speech should not be viewed by small children since they can grow up with some wrong information which is not as per their respective religion (Leppert, 2007). The image in foothold of private versus public sector, it can be viewed freely by those in the private sector as it does not involve the large crowd of good deal who in turn may cause chaos as different people have a different perception. Based on religion the image tends to be more against the Catholics as they make more use of the crucifix though this affects Christians in general.Serrano protected his artwork by saying that it was a revaluation of the billion-dollar Christ-for-profit industry and condemnation of those who abuse the teachings of Christ for their own ignoble ends. The artiste as fa r he has the freedom of expression he also has responsibility of sexual climax up with art that controversy free. The artwork should not be complex to go out especially to the young ones. The viewers too have the responsibility to interpret and enquire of any type of art before either opposing or proposing of the same. This will aid in a smooth relationship between the artistes and the whole community at large (Mazur, 2002).Gender relates to this image in that it seems to victimize the moral behavior of male sexual practice. This is by having the image merged in urine. All in all, Jesus Christ portrayed in the crucifix was a man. The artiste Serrano did show the image of a man, not because he was male gender but because Jesus Christ was of the said gender (Mazur, 2002).I am willing to fully support Serranos artwork this is because it has a positive inwardness to the Christian fraternity. His message is directed to those

Fundamentals of Property Law Assignment Example | Topics and Well Written Essays - 1500 words

Fundamentals of Property Law - Assignment ExampleIt is evidently clear from the discussion that the expression the fee simple of the estate of the realm naturally style the fee simple as the highest estate unencumbered and subject to no conditions. Because the discharge of the mortgage was forged by Brown, the property naturally has some encumbrances. The weigh has fallen through basically because of the whole debacle with Brown, who was hired by Hollis. In order for Lowe to acquire the property, everything must be resolved regarding the discharge of the mortgage. As it stands, just because Hollis possessed the land did not necessarily mean that he had total ownership. Under the existing law of real property, the mere possession of land did not prove ownership conclusively. As such, it must be noted that a fee simple is the closest thing to absolute ownership in Australia that one can have, however it does not mean that one necessarily completely owns the property. This may be dif ficult to understand, but basically, it is a guarantor that person cannot just blatantly take over someone elses property if there are encumbrances upon the piece of land being sold, similar to liens in new(prenominal) countries. Advise on the interest that Phil has in Savacre. Would it make any difference to your answer if Phils lease was only for a period of one twelvemonth? Phil has several options here. For starters, he may decide to sue Lowe for having acted upon his intention to demolish the property before Phils lease was up. Another issue to consider is the incident that Hollis may be getting a capital loss from the property. The owner of a structure could grant a rent-free lease over the building to an associate and possibly crystallize a capital loss if it then sold the encumbered property to a third party at its cut market value.

Analysis of how both companies meet their financial objectives and aims Essay Example for Free

Analysis of how both companies meet their financial objectives and aims EssayIn this report I have decided to concentrate on two companies, Woolworths plc and WHSmith plc, I will be analysing and comparing the two companies on their objectives (what they say their objectives ar, and how they meet those objectives set) and their performances (if they have do profit or loss). I will research all these from their annual report, which is provided on the Internet.An introduction of both companies Woolworths is known to be one of Britains leading planetary merchandise retailers, with great brands, strong market position and a powerful presence in home entertainment. The company has one of the highest customer shoppers performances of all UK retailers and at present known to be the largest non-food retail chains. WHSmith is also one of the UKs leading retail groups incorporating market-leading companies in retailing publishing and news distributing.WHSmith has 1,464 stores world-wi de all these locate in focalise like the UK high street, airport, stations and countries outside of the United Kingdom such as North America and Asia The performance of the companies Last year was an eventful and challenging year for the Woolworth the first half of the year when they were still part of Kingfishers plc was a moment of uncertainty as the future of the company was being decided.The company separated themselves from Kingfisher plc on 28 August 2001, leaving them with 200 one thousand million of debt, over ? 100 million of excess stock, loss marking new format and e-business. Woolworths formats are designed to appeal to the value-conscious consumer. Woolworths is a mass-market retailer with a leading brand and broad product offering at competitive prices.Their mission is to be at the heart of the community and the best loved retailer for kids, home and family leisure. The companys brand is known to be one of the best-recognised retail brands in the UK and proving this is on average, 6. 5 million customer transactions are made on tills per week. Woolworths business operates in the UK general merchandising market, which is both large and highly fragmented, with participants of varying sizes and covering distinct category mixes.

Theories Of Leadership Essay Example for Free

Theories Of leadinghip EssayIntroductionManagers and leading in any organization atomic number 18 expected to influence the actions of their employees through several channels. Some of these include communicating with staff members, stimulating subordinates to work hard and ensuring that all the resources indoors the company argon allocated well. These expectations can either be met favoredly or unfortunately. Numerous researchers felt the need to come up with theories that govern successful leadership. One of these theories is known as the contingency theory.An analysis of the contingency theoryFielder (1964) came up with this approach to leadership after realizing that leaders could function well if they changed their styles to suit the situation at hand. This is where the name contingency originates. Fielder conducted several studies of effective and ineffective leaders. Thereafter he concluded that the most successful approach would be to match organisational settings w ith leadership styles. These two parameters form the basis of the contingency theory of leadership.According to Fiedler, leadership style whitethorn be delimitate as the way leaders and employees interact with one a nonher. One can non claim that a managers leadership style changes from time to time. On the contrary, this is a fixed parameter since each leader has a different personality. The latter term mostly affects the nature of the leadership style.Since this trait is of the essence(p), Fielder came up with a method for categorizing leadership styles. He used the Least Preferred Coworker Scale (LPC). The Scale is use only to leaders the latter ar asked to rate the person they feel has worked very poorly(predicate) with them. The scale starts from one to eight and may be a classification of a co-worker from the past or the present depending on which worker was the worst. Examples of personality traits that guide the scaling process includeUnfriendly versus friendly worke rsHostile versus supportiveGuarded versus openUncooperative versus cooperative (Fiedler, 1964)All the latter traits are in ascending order with number 1 representing the character trait on the left while number 8 represents the character trait on the right.The LPC scales main purpose is to determine whether a particular form of leadership style is task lie or people oriented. Leaders who score high marks in the scale favor interpersonal relationships. Consequently, those leaders who rate their co-workers in a negative light may be more interested in the task at hand. This also implies that such leaders have poor interpersonal relationships. However, critics have asserted that such traits may not necessarily be accurate. Some individuals may portray their co-workers in a negative light but still be keen on interpersonal relationships.Fielder (1964) felt that those leaders who managed to match the requirements of the task with a dominant personality trait tended to be more successful . Dominant personality traits largely determine the approach chosen by leaders i.e. either people oriented or task oriented approach.The LPC scale indicates whether or not a certain individual values interpersonal relationships. In case leaders score highly, then they commonly consider interpersonal relationships as a all important(p) part of implementing tasks. However, those who score low marks in the scale value task completion more than anything else does. Consequently, most of them may not bother creating next relationships with their employees.Fielder (1964) was also concerned with the organizational environment or what is also called the situational variable. According to him, the situational variable can be defined as that aspect within the organization that can allow leaders to exert influence within their team.He divided the situational variables as follows-Task mental synthesis-Position power-Leader to member relationshipsThe leader-member structure is defined as the level of acceptance team players have towards their leader. Task structures may be defined as the level of job specificity among subordinates. Lastly, daub power is exposit as the level of authority attributed to a leader as result of his position within the organization. (Fiedler, 1964)In the Leader-member situation, a leader would be more successful if he establishes robust links between himself and the other people within the organization this is through trusting and respecting members of his organization. Additionally, successful leaders in the task structure situation are those ones that specify job detail well. Powerful leaders in the position power situation are those ones that exercise their right to assoil and hire or to reward individuals within the organization.All the latter three situations create eight leadership styles. These are then divided into two important groups known as the relationship or task oriented leaders. Five of the leadership styles fall under the latter category.Fielder (1964) felt that task oriented approach were more appropriate in disasters or extreme situations. In cases where a fire strikes an organization, then leaders would be more efficient if they applied the task oriented approach. At this time, the issue of position power is not very relevant and neither are the relationships of the co-workers. In extreme cases or in disasters, the individuals who direct tasks most efficiently become the leaders. The opposite is true for leaders who try applying a people oriented approach. This would mean considering what people think and this would at long last delay outcomes. Such cases require only the fastest responses for survival.Task oriented relationships are also important in blue collar jobs. This is because such workers normally require direction and job specificity. Therefore, this leadership approach would be most appropriate. On the other hand, such scenarios may still be characterized by strong leader member relati onships. The latter situation can be effected when leaders reward worker well for their efforts.Relationship oriented leadership styles may be more favorable in situations where the organizational environment is highly predictable. Some of the most appropriate environments include research institutes. In such circumstances, subordinates would not like it if their leaders interfered with the nature of their task. Here, it would be more appropriate to work on building relationships with subordinates.It should be noted that Fielders theory does not cover all the possible factors affecting leadership. Some leaders may be more effective if they undergo training or gain encounter on the job. Such factors have not been accounted for by the contingency theory.ConclusionOverly, Fielder was trying to say that leaders are not just successful or unsuccessful. Leaders can either be effective in certain situations and not all of them. Therefore, all individuals can become leaders if they deal t he most appropriate situation to apply their leadership styles. Additionally, it is possible to make a leader more effective by altering the following position power, task structure and leader member relationships. It should also be noted that Fielders scale can be quite appropriate in determining leadership styles.ReferenceFiedler, E. (1964) A Contingency Model of Leadership Effectiveness Journal for Advances in Experimental Social Psychology, Academic Press 1, 12, 149-190

Abuse of power Vs Spiritual Redemption Essay Example for Free

Ab usage of power Vs Spiritual Redemption EssayThe Tempest is full of different stalks that throw away perfectly to bring out the mastery of Shakespe be. However, two themes that stand out in the play, and they have been the source of much debate over the years. Both themes are backed with incredible, pinpoint accurate evidence over the dominance of the other. Over the years, scholars have found it hard to settle on one theme be dominant over the other, but with an analysis of the evidence presented on both counts, the decision is left to the reader of the play or the earreach for that matter. The first theme that stands out is spiritual redemption and goodwill. It can be explained in the play through the casing Prospero whereby he struggles, loses his kingdom, finds a nonher and learns from his past in order not to have history repeat itself. In the world crested by The Tempest, through Prospero, Shakespeare tries to examine the human condition of sin, redemption and goodw ill. At the beginning of the play, the audience is made aware that Prospero was a Duke of Milan but his brother Antonio, with the kings consent, took his Dukedom away from him. During his tenure as Duke, Prospero was more concerned with education and magic trick than he was ruling his kingdom. For this reason, Antonio was able to take advantage and win over the hearts of the people of Milan, which consequently led to the usurping of Prospero from his dukedom, but with help from the King of Naples.Prospero was accordingly exiled with his daughter Miranda, on a wrecked boat where they terminate up on an island. Here, Prospero learned the values of authority by turning Caliban into a striver under his command. At one point, his slave alongside two other men tried to kill him but he manipulated them and changed their minds completely. When the shipwrecked men had been brought to him, he could have chosen to exact his revenge and kill them, but he was kind to them. In so doing, Prospe ro found redemption for his sin as a previously failed ruler.The other theme that stands out is that of Colonial Abuse of Power. In almost every scene, there is a portrayal of power whereby there is a character that has power over the other. The relationship of Prospero and Caliban is that of master and slave and this stands out throughout the play, where Caliban submits to Prospero. The Tempest brings to light the theme of colonization when in 1610, the Sea Adventure to Virginia ended in shipwreck in Bermuda. Also, the anagram of the name Caliban is derived from the name cannibal which shows a difference in cultures. This also shows that Caliban was the native of the island that Prospero had asserted himself as king. Propseros relationship with Ariel also demonstrated the intense theme of power. Ariel is a spirit but she is submissive to Prospero, by saying All hail, Great masterIn both themes, there is enough evidence to warrant a discussion, but to my opinion, I think that the t heme of spiritual redemption and goodwill is most dominant. Primarily, this is because the use and abuse of power is an age-old tradition that never seizes. However, the act of Prospero showing mercy stands out because as royalty, there is a need to show unimportance and making decisions not out of feeling, but out of reason. Thus, the theme of spiritual redemption and goodwill is most convincing in all manners and rights. first document

Analysis of the Global Tire Business

Analysis of the world-wide have on BusinessI. Company Analysis1. Basic OverviewThe January 2010 issue of Modern play out Dealer magazine published the 2009 sales data for the global beat industry, and Hankook Tire placed seventh on the list for the fourth consecutive grade since 2006. sales have grownup an average of 13.9 percent annually for the past decade, bringing the cumulative rate to 133 percent for the period. More than 70 percent of the tax is earned outside Korea.2. fiscal OverviewHankook Tire Co. posted improved 2010 earnings year-on-year with its net profit reaching 424.8 billion won ($381 cardinal) last year, up 21.1% from 350.8 billion won a year earlier. The overall global increase has come on the back of brisk sales in both domestic and overseas grocerys. Sales jumped 19.3% to 3.35 cardinal won, and run profit rose 5.5% to 367.5 billion won. In a separate statement, the company said its consolidated sales, including figures from its overseas operations, reached 5.36 trillion won last year with operating(a) profit coming to 585.8 billion won. According to the annual report the company is targeting 6.06 trillion won in global sales in 2011.3. Organization createHankook rakes organizational structure is matrix structure. Under Global CEO, there ar Global Staff (Head rump by functional Division) and Regional Headquarters (Head quarter by Geographical Division). Both Functional division and Geographical division have the same level of Structure in Global CEO mesa 1-1 Under Global CEOSourced by Hankook Tires annual report, 2010Global distri howeverion network consists of four regional headquarters and 80 subsidiaries sales offices and its products are exchange worldwide in about 180 countries.4. SWOT AnalysisStrengthsOverall, a advanced financial statementA positive brand recognition on the world market ( advanced quality + low charge)A healthy labor-management relationsThe worlds major tire factory and the proper distribution channels to market demand, buildingWeaknessesLow investment than expected in the industry (Total asset increase, non-current ratio lower than industry average)RE market is relatively weak compared to the OE marketOpportunities home(prenominal) auto demand increases due to tax credited for old vehicles and hybrid vehicles.After the global financial crisis, global tire charge competitiveness is acquire higher. chinas tire market increases due to chinas auto market growthThreatsFrom 2009, the prices of natural rubber and synthetic rubber (raw material prices due to the high price elasticity) is promptly risingII. application Business Analysis1. Industry Environment analysisThe global tire market accounted for approximately US $140 billion and 1.25 billion volumes in 2008, according to Research in Tire. While the worldwide tire industry is still largely driven by the well-known multinational companies (in size order) Sales amount of Bridgestone, Michelin and Goodyear are 46% of su bstance sales for top 75 ranked companies (2008 old age). Sales portion (of world top 11th to seventh Tire companies) increased to 31% in 2008 compared to 20% in 1998. Its because the subsequent tire companies based on the high growing market such(prenominal) as China, Taiwan, India, and Russia are getting larger. On the other hand, the sales portion of 3 Korean companies in the world market steadily increase in 2010s and have interpreted 56% from 2006 year.Tire Industry has the entry barrier such as huge a capital injection, technology challenger, brand establishment, and distribution channel, so it is formed as oligopoly in each nation. But top raking companies has the competitive in major market of North-the States and Europe.This market is divided into side by side(p) basic categories OE (Original Equipment) which providing to cable car manufacturing companies, and RE (Replacement Equipment) which providing to tire distribution. RE market size is 34 times life-sizeger tha n OE market. Compared to OE sales which are affected by the volume of railcar production, RE has stable consumption market in proportion to the registered number of car and average operating mileage of car. Table 2-1 World Major Tire Companies2. Competitor analysis1) MichelinStrengths100 years of tradition with the highest international brand awareness and increase reliability, high technology based on more than 10% of homeopathic products are highly priced. Michelin recently later on driving it to the driver of a flat tire platform developed by us after a run on the world market has raised more than 2%. By advantageful overseas, and currently has 57 global offices with two thirds of the total production is done overseas.WeaknessesMichelins impudent products are released once every two years. This once in six months compared to other companies to launch new products launched at seven-day intervals tends to slow the market responsive.2) Kumho TiresStrengthsColor tires, aircraft tires, racing tires, passenger tires, truck and bus tires, industrial tires, and a variety of excellent products and sell to the general consumer confidence and job-oriented consumers are demanding. In addition, through the diversification of high-performance products to market is increasing grip. In addition, the current four car race competition among the three has been supplied by Kumho Tire.Weaknessesrailway car racing is non an active participant in the company as an official support is simple, has done. Also entered the Chinese market early in the fracture is not performed correctly, but not localization, market share is very low.3) NexenStrengthsBased on stable labor-management relations for 3 consecutive years of financial tire manufacturer has the best financial structure. In addition, the price is so competitive.WeaknessesBoth low technologies value-added market shares due to the low productivity focused mainly the domestic market. But overseas sales by focusing on profi tability are difficult to expect.III. world-wide Business Strategy Analysis1. Ideal International Business Strategy AnalysisPressure for global integrationGlobalization of markets Basic needs of customers are not quite different globally. The convergence of customers for an automobile tire makes tires makers go global. Tire industry has similarities in products, customers, and even operating structures. The objectives of tire makers are mainly how to focus on minimal costs and level best value.Globalization of production Standardization of tire drives the globalization of market. Since tire industry is typical the manufacturing industry, it can benefit from economies of surpass and cluster effects at special(prenominal) locations such as Hungary aiming European market.Pressure for local responsivenessCustomer divergence Customer and country divergence are middle due to following reasons. Since a tire is complementary goods of an automobile, a tire market is strongly affected by an automobile market. In developed countries, there is no big pressure for local responsiveness because economic conditions and infra structures for a tire market are quite similar. However, in developing countries such as BRICs the prison-breaking between rich and poor are wide and road conditions are very different. It means that Hankook tire has to figure out what the customers want.Host government policies A tire industry is perfectly related to an automobile industry and many local companies try to enter its home and expand their dividing line. Therefore, host government such as China might be sensitive and hostile to foreign company.Therefore, it might be a good way for Hankook tire to choose Global Strategy or Transnational Strategy.2. What Hankook Tire did?5 RD Centers Korea, U.S.A, Germany, China, Japan5 Factories Korea (2 factories), China (2 factories), Hungary4 Regional headquarters and 80 subsidiaries Sales office exchange its products to 164 countriesHankook Tire is steadily improving its image as a subvention brand throughaggressive global marketing and continuous research and phylogenesis efforts.3. Hankook Tires entry to other countriesInternationalization Phase and Entering Countries1) Beginning phase (1981-1998) take a shited Hankook Tire America Corporation (1981)Established its capital of Red China branch in China (1994)Established Europe technological Center (ETC) (1996)Established China Technical Center (CTC) (1998)2) Expansion phase (1999-present)Completed Jiangsu and Jiaxing Plant in China (1999)Opened Europe Distribution Center (EDC) in the Netherlands(2001)Hungary Plant begins production (2007)100 millionth tire produced in China (2007)Detailed information by main countries1) ChinaA. Objectives of InternalizationTo create demand in the fast growing market with high infinite potentialExpand its tire business in China with increasing automobile industryB. good will for Site SelectionEconomic Continuous double digit growth. Explo sion of middle-high income consumersSocial/political Communist country geared toward open policy. Easy to enter due to its similarity to Korea in terms of social, cultural and geographical aspectTire Industry World largest tire manufacturing company (over 337 million yearly, *source -Tire Business), World highest growth rate on domestic market salesC. Entry ModeFounded Beijing branch in 1994 and tradeedEstablishment of Joint-Venture with Chinese Company which is located in Jiangsu and had a good relationship with themEstablished China Technical Center in 1998 and completed Jiangsu and Jiaxing plant in 1999Expansion of distribution channel in 10 major citiesRoll-out of TStation one-stop auto service concept in Shanghai in 2007Operating 40 TStations and 400 Tire townsfolks in ChinaD. OutcomeRecorded 20% of market share which is 1st in China and 1.4 trillion won of sales revenue in 2010Supplied its products to more than 30 automobile companies in Chinese market such as Volkswagen, PE UGEOT, interbreeding and NISSAN Table 3-1 vellicate Tires ability of production and plan for expansionHomeAbroadTotalPlan for expansion4,300China 2,8007,600Build additional factories in Hungary (+500)Hungary 500Establish 3th factory in China and 1st one in IndonesiaMaking a plan to produce 110 million a year until 2014Sourced by Hankook tires IR2) HungaryA. Objectives of InternalizationCost Reduction for Distribution and ManufacturingHungary is a good place for first foray before expanding its entry into Western Europe countriesB. Consideration for Site SelectionEconomic Risk minimization of current exchange rate among EU countriesSocial/Political Reduction of possible trading disputes and not imposing antidumping taxs among EU countriesTire Industry Europe is taking 30% of world tire marketC. Entry modeEstablished of Europe Technical Center in 1996 and began Hungary Plant in 2007Decided to build additional two more factories in 2010 to be able to manufacture 12 million per year4 . Evaluation and key learning from previous caseThe tire industry is multinational in nature therefore, production plants are situated in virtually every geographic region, particularly in North America, Europe, Japan, other Asian countries. Strategic supplies of natural rubber integral to the production of certain OTR tires are situated near the equator in many of the Asian countries, including Malaysia, Indonesia, Thailand, India, and China.Large global tire plants in many regions of the world have the capability to produce a variety of tires including passenger car, truck and bus, and certain OTR tires, variably dependent upon logistics, demand, and affiliation.In this competitive industry, Most of Hankook tires international business turned out to be sustainable. Especially, the success in Chinese market is meaningful in respect of Hankook tire has been leading other competitors with high quality strategy operating Tire Town and differentiation strategy managing premium store TS tation. The next step was to expand its market to Europe, America, and other countries. To be prosperous in these new markets as they did in China, Hankook tire should analyze the target market thoroughly and implement appropriate strategies optimized to each market.IV. Companys TO-BE Analysis1. Should Hankook Tire really go to global market?As shown above, Hankook Tire has been tried to expand their business to global for a long time and seems to place good position in China market. With the effort, the company shows chess opening to be a global big player with competitiveness. Thus, they need to keep their global strategy and to expand global business further. Before the expansion, however, Hankook Tire should visit below questions.What are the core competitive points of Hankook Tire?What were the key success factors of Hankook Tire for China market?Is the success factors are applicable to other markets such as Europe and America?2. Does Hankook Tire still have the chance globa lly?Most of all, the critical success factor of globalization of Hankook Tire is successful insight into China market based on competitive price with better quality, preoccupancy, and well-established brand value. Tire industry has been threatened sharp rising of the price of raw materials and it results short-term shortfall of profitability. Global top-tier players are suffering from the situation of increasing price of natural rubber under lower demand of tires and do not show sufficient capacity to prepare for business recovery. Whereas, Hankook Tire maintains relatively higher profitability than other global top-tier competitors and it may give good opportunity for the company to be grown by survivor effect. Moreover, the good profit structure makes Hankook Tire offer good suggestion to dealers. There is no doubt that it is the right time for Hankook3. Our suggestionsHankook Tire ranked 1st place of PCR (passenger car radials) with 30% market share in China, which is one of the biggest potentials, and marked 7th in worldwide tire market. However, strong global competitors are continuously expanding their investments in China market and thus the competition is getting much fiercer. Furthermore, the price of raw materials is going up and it does deteriorate the operation profit. Therefore, we would like to suggest three strategic pillars for Hankook tire to acquire competitive edge of global competition and to explore new chance for the growth as below.1) Reinforcement of the leadership in Emerging market focusing on ChinaAggressive penetration and expansion strategy of Hankook Tire for emerging markets is most appropriate to broaden the gap with following competitors at this point.Enhance competitiveness in Original Equipment (OE) tire market through strategic alliance with one of the big automobile companies such as Hyundai-Kia motors which is the 2nd player of China automobile industry.Preoccupy coming(prenominal) explosive market of Replacement Equipme nt (RE) tire through technology driven, value added products such as UHP(Ultra High Performance)Expand T station business, a new distribution channel which makes high profitability through direct sales to consumer, provides highly qualified service and image, and enables CRM.Develop localized tire products considering Chinese unique(predicate) culture, weather, and economics. For example, customized tires for reckless driving and overloading vehicles.Diversify product portfolio from tires for PCR to bus, truck, and light trucks.2) Expansion of growth opportunity in Developed market such as AmericaUS market registered cars are 250 million and among this newly producing car only shares 13 millions. It is the biggest RE tire market preferring premium brands. Hankook Tire started to export 1986 and 2010 sales revenue reached US$ 1billion. Market share of Korean tire companies in US market gradually increased from 2.5% in 2000 to 8.9% in 2009. It is primarily driven by increased prefere nce to Korean brands of US dealers. Korean brands demonstrate significant higher market shares than wholesalers distribution rate and it provides the dealers higher profit. Moreover, top-tier players still maintain oligopoly but decrepit facilities and inefficient cost structure let disappear advantages of local production. Closing of the factories decreases capability of production in US and thus the amount of export tends to increase continuously. Lastly, as US government adopted a protectionist stance as evidenced by the imposition of an additional 35% safeguard tariff on Chinese-made tires, Hankook Tire should handle the rapidly changing business environment with appropriate countermeasures at the right time. To leverage the above opportunities, we would suggest expanding the business with premium tires based on local production and efficient supply chain management (SCM), getting competitive edge in North and South American area.Build a new factory in Mexico and produce two sep arate line products Mexico has several advantages as supplying headquarter for North and South America Free trade with US, lowest labor cost among North America countries, and geographic advantage for effective supply between North and South America. 2 separate line products may satisfy different needs of the customers technology-driven, premium tires for North America and cost effective, low price tire for South America. reanimate market penetration taking advantage of relatively high profitability. Hankook Tire should expand Original Equipment (OE) tire sales and distribution channels because OE lasts averagely five years before replacement and around half have a tendency to keep their original brand in the timing of replacement. If Hankook Tire has an advantage on production of functional OE tires or distribution with aggressive investment under depressed tire market, allied with major automobile companies such as Ford which already established cooperation, it would be good chan ce to make a new leap forward as one of the big global players in tire industry.3) International business management for long-term competitivenessFor the long-term success of global business for Hankook Tire, our team suggests that high global efficiency and high local responsiveness be needed as strategic alternatives for international strategyAchieve economies of scale on the long term point of view. delinquent to the nature of the tire industry, the economies of scale with high foreign investment with extensive coordination would be effective way to spike the long-term competitiveness.Secure global scale efficiency through the localizationSince 2009, Hungarian plant has achieved to save the short-term logistic costs and shorten the delivery period from 2-3 weeks to 2-3 days. And also parentd market recognition in Europe. This is good example to have raised the market share through the localization. To build the next-planed Indonesia and China plant may helpful to strengthen lo ng term competitiveness.Decentralization Strategy by ongoing training program for local people. Trained local people could take the initiative to enhance not only the production efficiency and quality but also the sales. Thus, training program for local makes to strengthen the long term competitiveness