Analysis of the Public and Private Sports Industry

Analysis of the Public and Private Sports Industry Public, private and voluntary sectors in the sports industry, advantages and disadvantages of the leisure centre being in the public sector, how the local leisure centre can meet the aim of getting more local clubs to use its facilities. Introduction â€Å"Since the opportunity to participate in sport or recreation requires facilities, the central task of organisations, and associated individuals, is to provide a service which focuses on people and which satisfies that need.†[1] The sports industry has changed beyond all recognition since the beginning of the 1990’s in each of the public, private and voluntary sectors. The impetus has come from top level government policy with the creation of the UK Sports Council and the formation of the chief sporting bodies such as Sport England offering both funding and structure to the previously ad hoc nature of leisure and recreation in modern Britain. Moreover, the lure of professional sport has also irrevocably changed in tandem with the structural changes in amateur sport with the result that there is, at the dawn of the twenty first century, more people are taking an active part in sport, which has further increased the pressure on local services such as leisure centres. There are though vast differences between the way that the public and private sector sports providers are run and funded as shall now become apparent. The Private Sector With regards to the sports industry, the private sector refers to those leisure services that are funded by private capital and open only to private membership. This can mean anything from specialist professional sports clubs to health and fitness clubs to local sports teams that have been established and sponsored by local and national businesses alike. The advantages of this kind of sporting industry are predominantly economic with the funding of private sports clubs historically far outstripping the economic resources available to equivalent public sector sports services. Certainly in the 1970’s and 1980’s, private sector sports industries were far more popular and productive than their public sector counterparts mirrored in the elevated sporting achievements of private school sporting institutions as opposed to the relative failings of the same public (comprehensive) school sports bodies. There are, however, inherent disadvantages to sports and leisure services that rely exclusively on the private sector for funding. First and foremost, there are no guarantees that the source of that funding will remain constant for any fixed length of time. Benefactors are subject to the ups and downs of the free market economy, which can result in sharp reductions as well as rises in the level of funding provided. In addition, any leisure service that is inexorably tied to the private sector also inevitably suffers from the lack of community spirit that can only be adequately garnered through association with the local public authorities. Thus, while the advantages to sports services in the private sector appear on the surface to be all encompassing, the reality is that the lack of stability that characterises all facets of the private sector economy hampers the sustained growth and popularity. The Public Sector â€Å"We know that sport can make a positive contribution to national morale, health and the economy. We believe that it can enhance community spirit, equality of opportunity, personal development and social integration.†[2] As the above quotation from the UK Sports Council in 1992 attests, the government has radically altered the way in which it views sport and the national leisure industry. The leisure industry is no longer seen as a vehicle through which to achieve solely sporting success; rather, sport within the corridors of power in Westminster is now seen as a way of combating such issues as obesity, social exclusion and perceived self‑competence. â€Å"Sports are vehicles of identity, providing people with a sense of difference and a way of classifying themselves and others.†[3] As a direct result, funding within the public sector has seen a sharp, unprecedented rise since the early 1990’s with the government acting as the focal point behind this increase in official spending. An investment of  £1.5 billion over the next five years by way of state sponsored assistance has been promised by Westminster to further increase the organisational structures and performance levels of adult and child athletes who train and practice within the public sector. This money, bolstered by funding generated from institutions such as the National Lottery, is delegated to local sports authorities within Sport England, Sport Wales, Sport Scotland or Sport Northern Ireland and injected into the local community. Furthermore, local government spends approximately  £1 billion per year on sport and leisure, which is more than 50% of the total resources available to sport. This financial injection is far beyond any investment proposed by private capital; in fact, because of this large economic discrepancy, the private sector has increasingly sought to form a partnership with the public sector in order to be associated with the vast increase in interest in sport as witnessed in recent years. Moreover, public sector sports services also get to reap the rewards of the government’s efforts at placing the country on the international sporting map. The 2002 Commonwealth Games in Manchester and, more significantly, the 2012 Olympic Games to be held in London will prove to be long term sources of investment for all those with an active interest in public sector sporting services. Not only has funding vastly increased (with the cost to the government estimated to be in excess of  £1 billion for the 2012 Games), the facilities that have been and are being constructed are open to the public after the completion of the official competition. In Manchester this has served to open up a city centre swimming pool, an athletics track and a football stadium for use within the public sector. The results for London are likely to be much more wholesale than in Manchester. Moreover, as the new facilities and funding increase, so the burgeoning association between national identity, l ocal and central government and sport is further cemented. This has helped to push people into participating in public as opposed to private sports services, representing a significant turnaround from previous decades. Like private sector sporting institutions, public sector services are similarly riddled with pros and cons. The most obvious advantage at the present time is the aforementioned increase in public authority funding and facilities open to the public sector, exacerbated by a media that constantly underlines the partnership taking place between local government and sport. This is, however, a double edged sword as the major disadvantage to public sector sports services concerns the very nature of government. Ultimately, just because it has suited New Labour to promote participation in recreation and sport is not to state that the Tories would necessarily feel the same. Thus, public sector sports are subject to the same ups and down and insecurities that beset the private sector. The Voluntary Sector Voluntary organisations rely heavily upon both the community and private enterprises for funding; they therefore straddle the boundaries that have traditionally separated the public and private sectors. Once more, though, it is the unprecedented rise in government funding that has been the voluntary sector’s greatest asset. The revamped Department for Culture, Media and Sport set up the Community Club Development Programme (CCDP) specifically to deal with the funding problems regarding the facilities and personnel required for the successful operation of volunteer sports clubs. The CCDP will provide  £100 million to National Sports Governing Bodies by March 2008 for the construction and continuation of community based sports clubs. Advantages to this kind of sporting authority centre upon the lack of reliance solely upon the public or the private sector, while conversely, at the same time, the lack of constant source of funding makes the voluntary sector the most vulnerable within the current social and political climate. Conclusion There are vast disparities between the public and private sectors with the local voluntary leisure centre enjoying the benefits of both worlds. For as long as the current climate favours the sports and recreation industry, the community leisure centre will continue to reap the rewards of a society renewing a relationship with exercise that had previously become stale. At present there is an excess of people interested in taking part in leisure and sport that is wholly to the benefit of local leisure centres that are able to charge admission fees that are significantly less than those on offer in the private sector. In addition, excessive government funding signals that the economic means at the public and voluntary sectors are currently vastly superior to those of the private sector. However, in the final analysis, one should not presume that the imbalance in favour of the public sector will remain as it is indefinitely. Should leisure and sport once again find themselves on the peri phery of popular culture, we would surely see a reversal of contemporary trends with the balance tipped heavily in the private sector’s favour as is the case with health and education services. Politics, like economics, is subject to sweeping changes in a very short space of time. References Biddle, S., Sallis, J. and Cavill, N. (Eds.) (1998), Young and Active? Young People and Health Enhancing Physical Activity: Evidence and Implications London: Health Education Authority Elvin, I.T. (1990), Sport and Physical Recreation London: Longman Horne, J., Tomlinson, A. and Whannel, G. (2000), Understanding Sport: An Introduction to the Sociological and Cultural Analysis of Sport London: E FN SPON Hylton, K. (Ed.) (2001) Sports Development: Policy, Process and Practice London: Routledge MacClancey, J. (1996) Sport, Identity and Ethnicity Oxford: Berg Sport in the Nineties – New Horizons: a Draft Consultation (1992) London: UK Sports Council Footnotes [1] Elvin, I.T. (1990), Sport and Physical Recreation London: Longman, p.6 [2] Sport in the Nineties – New Horizons: a Draft Consultation (1992) London: UK Sports Council, p.75 [3] MacClancey, J. (1996) Sport, Identity and Ethnicity, Oxford: Berg, p.2

Automobile Industry Essay

* Detailed analysis of Automobile industry which is gearing towards international standards. * Analysis of the impact of qualitative factors on industry’s and company’s prospects. * Comparison of the Global automobile scene with its Indian counterpart. * Study of the challenges facing the Indian Automobile Industry * Analysis of the implementable strategies to counter the effects of the discussed challenges. PREFACE The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. The Indian Automobile Industry embarked on a new journey since 1991 with delicensing of the sector and subsequent opening up for 100 per cent FDI through automatic route. Almost all the global majors have set up their facilities in India taking the next level of production of vehicles from 2 million in 1991 to 110+ million in 2011. The Auto Sector in India is set to continue in its growth trajectory for the next five years and India is an increasingly favourite destination for Global Majors looking at emerging market. This in turn, has fuelled a boom in the domestic auto market, with close to 10mn vehicles sold in India in 2009-10 The automotive industry is increasingly becoming the cynosure of the manufacturing sector across the globe. Due to its intense forward and backward linkages with several key segments of the economy, the automotive industry has a strong multiplier effect and acts as one ofthe key drivers of growth across the globe. The attention and importance to the automotive industry in the economic development and planning policies of Government and its agencies has also witnessed significant up rise. The industry has been evolving over the years, meeting up with challenges as diverse as transitions, consolidations and restructuring, and thereby adapting to the new market conditions. As of 2011, India is home to 40 million passenger vehicles. More than 3. 7 million automotive vehicles were produced in India in 2011 (an increase of 33. 9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation’s roads. OVERVIEW The Indian Automobile Industry manufactures over 11 million vehicles and exports about 1. 5 million each year. The dominant products of the industry are two-wheelers with a market share of over 75% and passenger cars with a market share of about 16%. Commercial vehicles and three-wheelers share about 9% of the market between them. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes. The industry has a turnover of more than USD $35 billion and provides direct and indirect employment to over 13 million people. The supply chain is similar to the supply chain of the automotive industry in Europe and America. Interestingly, the level of trade exports in this sector in India has been medium and imports have been low. However, this is rapidly changing and both exports and imports are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged. With a high cost of developing production facilities, limited accessibility to new technology, and increasing competition, the barriers to enter the Indian Automotive sector are high. On the other hand, India has a well-developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government. The cost structure of the industry is fairly traditional, but the profitability of motor vehicle manufacturers has been rising over the past five years. Major players, like Tata Motors and Maruti Suzuki have material cost of about 80% but are recording profits after tax of about 6% to 11%. The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Investment in the technology by the producers has been high. System-suppliers of integrated components and sub-systems have become the order of the day. However, further investment in new technologies will help the industry be more competitive. Over the past few years, the industry has been volatile. Currently, India’s increasing per capita disposable income which is expected to rise by 106% by 2015 and growth in exports is playing a major role in the rise and competitiveness of the industry. Tata Motors is leading the commercial vehicle segment with a market share of about 64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%. Hyundai Motor India Limited and Mahindra and Mahindra are focusing expanding their footprint in the overseas market. Hero MotoCorp is occupying over 41% and sharing 26% of the two-wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three-wheeler market. Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars. Steel is the major input used by manufacturers and the rise in price of steel is putting a cost pressure on manufacturers and cost is getting transferred to the end consumer. The price of oil and petrol affect the driving habits of consumers and the type of car they buy. The key to success in the industry is to improve labor productivity, labor flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilizing manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India. Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry. The Indian government should facilitate infrastructure creation, create favorable and predictable business environment, attract investment and promote research and development. The role of Industry will primarily be in designing and manufacturing products of world-class quality establishing cost competitiveness and improving productivity in labor and in capital. With a combined effort, the Indian Automotive industry will emerge as the destination of choice in the world for design and manufacturing of automobiles. The Indian market offers endless possibilities for investors. HISTORY The first car which ran on Indian roads was in 1897. Until the 1930s, cars were imported directly, but in very small numbers. Embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra was established by two brothers as a trading company in 1945, and began assembly of Jeep CJ-3A utility vehicles under license from Willys. The company soon branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalization in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands. Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India’s robust economic growth led to the further expansion of its domestic automobile market which has attracted significant India-specific investment by multinational automobile manufacturers. In February 2009, a monthly sale of passenger cars in India exceeded 100,000 units and has since grown rapidly to a record monthly high of 182,992 units in October 2009. From 2003 to 2010, car sales in India have progressed at a CAGR of 13. 7%, and with only 10% of Indian households owning a car in 2009 (whereas this figure reaches 80% in Switzerland for example) this progression is unlikely to stop in the coming decade. Congestion of Indian roads, more than market demand, will likely be the limiting factor. SIAM is the apex industry body representing all the vehicle manufacturers, home-grown and international, in India. INDUSTRY OVERVIEW This class consists of units mainly engaged in manufacturing motor vehicles or motor vehicle engines. Products and Services The primary activities of this industry are: * Motor cars manufacturing. * Motor vehicle engine manufacturing The major products and services in this industry are: * Passenger motor vehicle manufacturing segment (Passenger Cars, Utility Vehicles &Multi Purpose Vehicles) * Commercial Vehicles (Medium & Heavy and Light Commercial Vehicles) * Two-Wheelers * Three-Wheelers Key Auto Segments – Growth Expected to moderate over the next 12 months Financial Year 2012 was a landmark year – both in a positive and negative manner. It paved way for many breakthrough launches – saw the launch of segment defining Fluidic Verna, excellent value for money XUV 500, Hyundai’s entry level offering Eon and many more. It also displayed its sudden love for MPV/MUVs in the Auto Expo – Maruti’s Ertiga, Chevrolet’s Enjoy and Nissan’s Evalia were the most sought after showcase at the expo. We were now exposed to the hard truth as well – that how labour intensive the auto industry is. A labor strike can strike at Maruti shook the entire Auto Industry. The aftermath took its toll on the overall numbers. This was further catalyzed by inflation, consistent fuel hikes and rising auto interest rates. The world’s fastest growing automobile market was now under analysts scanner for its sheer volatility. Demand for cars fell for the first time in three years last July and slumped by the most in over a decade in October. SIAM which had projected a growth of over 20% had to instantly lower its projections. The Industry’s lackluster performance reflected in the overall performance of the country. In a recent report, S&P cut its outlook on India’s BBB- rating to negative from stable. This is surely not a good news for the Indian Industry in overall. The low-end hatchbacks were the ones to take the beating in FY12. For perhaps the first time in many years, small cars reported a decline in growth in 2011-12 (FY12), largely on account of Maruti Alto’s decline. Now, SIAM has forecast 10-12 percent growth in overall passenger cars for this fiscal, but this number may be lower if small car growth is again hindered. SIAM data showed that the mini car segment – which comprises Maruti 800, Alto, A-Star, and WagonR, the Chevy Spark and Hyundai’s Santro and Eon – declined by about 7 percent to 6,42,009 units (6,90,812 units) last fiscal. Sales of the Alto, the single largest selling car in India, had fallen by about 11 percent between April and February 2012. Also, for the first-time ever, bigger diesel cars – the SUVs – are selling more and there is no slowdown in ‘dieselization’. India’s largest automaker, Maruti Suzuki, expects car sales to increase by 10 per cent in the fiscal year beginning in April led by diesel models. Diesel car sales are expected to rise by 150,000 in 2012-13 while sale of petrol cars fall by 50,000, said the company. OVERALL HIGHLIGHTS: * Car sales in India rose just 2. 2 percent in FY2012 * Sales of motorcycles rose 12 percent in the previous fiscal year to 10. 1 million vehicles (10,096,062 units). * Scooter sales shot up 24. 5 per cent, to 2,562,841 units. * Total two-wheeler sales were 13,435,769 units in 2011-12 against 11,768,910 units in 2010- 11, up 14. 2 per cent. * Commercial vehicles, Siam said total sales in FY12 were 809,532 units, up 18. 2 per cent. * Three-wheeler segment that saw a decline of 2. 4 per cent at 513,251 vehicles in FY12. PROJECTIONS FOR FY2013: * # SIAM has projected passenger car sales growth at 10-12 per cent in 2012-13. * # Sales of trucks and buses, a key indicator of economic activity, rose 18. 2 percent in 2011/12 and are seen growing 9 to 11 per cent in this fiscal year. * # SIAM has pegged the motorcycle segment to grow 10-12 per cent in FY13 and scooters by 15-17 percent. Two wheeler segment is expected to have a growth of around 14-15%. * # Commercial Vehicles is projected to grow by nine to 11 per cent in FY13. * # SIAM has also projected five to seven per cent growth for Three Wheelers. Domestic car sales – expecting growth to moderate next year SUPPLY CHAIN OF AUTOMOBILE INDUSTRY: The supply chain of automotive industry in India is very similar to the supply chain of the automotive industry in Europe and America. The orders of the industry arise from the bottom of the supply chain.ie. From the consumers and goes through the automakers and climbs up until the third tier suppliers. However, the products, as channeled in every traditional automotive industry, flow from the top of the supply chain to reach the consumers. Automakers in India are the key to the supply chain and are responsible for the products and innovation in the industry. The description and the role of each of the contributors to the supply chain are discussed below. * Third Tier Suppliers: These companies provide basic products like rubber, glass, steel, plastic and aluminum to the second tier suppliers. * Second Tier Suppliers: These companies design vehicle systems or bodies for First Tier Suppliers and OEMs. They work on designs provided by the first tier suppliers or OEMs. They also provide engineering resources for detailed designs. Some of their services may include welding, fabrication, shearing, bending etc. * First Tier Suppliers: These companies provide major systems directly to assemblers. These companies have global coverage to follow their customers to various locations around the world. They design and innovate to provide â€Å"black-box† solutions for the requirements of their customers. Black-box solutions are solutions created by suppliers using their own technology to meet the performance and interface requirements set by assemblers. First tier suppliers are responsible not only for the assembly of parts into complete units like dashboard, brakes-axle-suspension, seats, or cockpit but also for the management of second-tier suppliers. * Automakers/Vehicle Manufacturers/Original Equipment Manufacturers (OEMs): After researching consumers’ wants and needs, automakers begin designing models which are tailored to consumers’ demands. The design process normally takes five years. These companies have manufacturing units where engines are manufactured and parts supplied by first tier suppliers and second tier suppliers are assembled. Automakers are the key to the supply chain of the automotive industry. Examples of these companies are Tata Motors, Maruti Suzuki, Toyota, and Honda. Innovation, design capability and branding are the main focus of these companies. * Dealers: Once the vehicles are ready they are shipped to the regional branch and from there, to the authorized dealers of the companies. The dealers then sell the vehicles to the end customers. * Parts and Accessory: These companies provide products like tires, windshields, and air bags etc. to automakers and dealers or directly to customers. * Service Providers: Some of the services to the customers include servicing of vehicles, repairing parts, or financing of vehicles. Many dealers provide these services but, customers can also choose to go to independent service providers. EXPORTS: India’s automobile exports have grown consistently and reached $4. 5 billion in 2009, with United Kingdom being India’s largest export market followed by Italy, Germany, Netherlands and South Africa. India’s automobile exports are expected to cross $12 billion by 2014. According to New York Times, India’s strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki. In recent years, India has emerged as a leading center for the manufacture of small cars. Hyundai, the biggest exporter from the country, now ships more than 250,000 cars annually from India. Apart from shipments to its parent Suzuki, Maruti Suzuki also manufactures small cars for Nissan, which sells them in Europe. Nissan will also export small cars from its new Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is in preparation to launch electric vehicles in Europe. The firm is also planning to launch an electric version of its low-cost car Nano in Europe and the U. S. Mahindra & Mahindra is preparing to introduce its pickup trucks and small SUV models in the U. S. market. Bajaj Auto is designing a low-cost car for the Renault Nissan Automotive India, which will market the product worldwide. Renault Nissan may also join domestic commercial vehicle manufacturer Ashok Leyland in another small car project. While the possibilities are impressive, there are challenges that could thwart future growth of the Indian automobile industry. Since the demand for automobiles in recent years is directly linked to overall economic expansion and rising personal incomes, industry growth will slow if the economy weakens. Passenger car exports from India increased 34. 16% in May, riding on the back of robust overseas sales by Hyundai Motor, Nissan Motor and Toyota Kirloskar in non-European countries. According to figures released by Society of Indian Automobile Manufacturers (SIAM), India exported 45,036 cars in the last month compared to 33,570 units in the year-ago period. â€Å"Europe still continues to be a worry, but the growth that we have seen is mainly on account of new markets that the companies have developed,† SIAM Director General Vishnu Mathur said. In May, the country’s largest exported Hyundai Motor India Ltd (HMIL) witnessed a growth of 42. 16% at 23,659 units against 16,643 units in the same month last year. â€Å"On account of slackness in the domestic market in May, we took the opportunity to ramp up the back orders for the export market. We had higher sales of the Eon in Algeria, the i20 in South Africa and the i10 in South America, particularly in Mexico and Columbia,† a spokesperson of HMIL said. However, rival and domestic market leader Maruti Suzuki India’s overseas passenger car sales fell by 9. 42% to 9,363 units from 10,337 units in May 2011, SIAM said. Car maker Nissan Motor India saw its exports from the country going up by over two-fold to 8,157 units last month from 3,937 units in the corresponding month last year. Toyota Kirloskar Motor, which started exports from April this year, sold 1,693 units in May in South Africa, SIAM said. Ford India’s sales in overseas locations, however, dipped 15. 81% to 1,693 units from 2,011 units in May 2011. Homegrown auto major Tata Motors’ exports rose by 32. 38% to 372 units from 281 units in the year-ago period. Exports of all categories of vehicles from India during May 2012 increased by 4. 62% to 2,46,314 units from 2,35,429 units in the same month last year, SIAM said . The two-wheeler segment witnessed exports of 1,74,362 units in last month compared to 1,61,346 units in the year-ago month, up 8. 07%, it added. The motorcycle segment’s overseas sales went up by 5. 16% to 1,63,446 units from 1,55,419 units in May 2011. SIAM said exports of scooters from India increased by 87. 18% last month to 10,660 units from 5,695 units in the same month last year. However, exports of commercial vehicles decreased by 8. 72% to 7,861 units in May 2012 from 8,612 units in the corresponding month last year, it added. MARKET CHARACTERISTICS * MARKET SIZE: The Indian Automotive Industry after de-licensing in July 1991 has grown at a spectacular rate on an average of 17% for last few years. The industry has attained a turnover of USD $35. 8 billion, (INR 165,000 crores) and an investment of USD 10. 9 billion. The industry has provided direct and indirect employment to 13. 1 million people. Automobile industry is currently contributing about 5% of the total GDP of India. India’s current GDP is about $1. 4 trillion and is expected to grow to $3. 75 trillion by 2020. The projected size in 2016 of the Indian automotive industry varies between $122 billion and $159 billion including USD 35 billion in exports. This translates into a contribution of 10% to 11% towards India’s GDP by 2016, which is more than double the current contribution. * DEMAND DETERMINANTS: Interest rate (%) – cuts unlikely to spur demand Determinants of demand for this industry include vehicle prices (which are determined largely by wage, material and equipment costs) and exchange rates, preferences, the running cost of a vehicle (mainly determined by the price of petrol), income, interest rates, scrapping rates, and product innovation. Exchange Rate: Movement in the value of Rupee determines the attractiveness of Indian products overseas and the price of import for domestic consumption. Affordability: Movement in income determine the affordability of new motor vehicles. Allowing unrestricted Foreign Direct Investment (FDI) led to increase in competition in the domestic market hence, making better vehicles available at affordable prices. Innovation: Product Innovation is an important determinant as it allows better models to be available each year and also encourages manufacturing of environmental friendly cars. Demographics: It is evident that high population of India has been one of the major reasons for large size of automobile industry in India. Factors that may be augment demand include rising population and an increasing proportion of young persons in the population that will be more inclined to use and replace cars. Also, increase in people with lesser dependency on traditional single family income structure is likely to add value to vehicle demand. Infrastructure: Longer-term determinants of demand include development in Indian’s infrastructure. India’s banking giant State Bank of India and Australia’s Macquarie Group has launched an infrastructure fund to rise up to USD 3 billion for infrastructure improvements. India needs about $500 billion to repair its infrastructure such as ports, roads, and power units. These investments have been made with an aim to generate long-term cash flow from automobile, power, and telecom industries. (Source: Silicon India) Price of Petrol: Movement in oil prices also have an impact on demand for large cars in India. During periods of high fuel cost as experienced from 2007, demand for large cars declined in favors of smaller, more fuel-efficient vehicles. The changing patterns in customer preferences for smaller, more fuel-efficient vehicles led to the launch of Tata Motor’s Nano – one of the world’s smallest and cheapest cars. Surprisingly, when overall passenger car sales have run into problems, the sales of luxury cars and SUVs, which are significantly more expensive in India than abroad due to high import taxes, have experienced encouraging growth. The Indian unit of BMW had to raise capacity at its factory four times during 2011, while sales of the high-end Jaguar Land Rover model owned by Tata Motors rose impressively during a period when more affordable passenger car sales were experiencing a downturn. * INTERNATIONAL MARKETS ANALYSIS: The Indian automotive industry embarked a new journey in 1991 with de-licensing of the sector and subsequent opening up for 100% foreign direct investment (FDI). Since then almost all global majors have set up their facilities in Indian taking the level of production from 2 million in 1991 to over 10 million in recent years. The exports in automotive sector have grown on an average compound annual growth rate of 30% per year for the last seven years. The export earnings from this sector are over USD 6 billion. Even with this rapid growth, the Indian automotive industry’s contribution in global terms is very low. This is evident from the fact that even though passenger and commercial vehicles have crossed the production figures of 2. 3 million in the year 2008, yet India’s share is about 3. 28% of world production of 70. 53 million passenger and commercial vehicles. India’s automotive exports constitute only about 0. 3% of global automotive trade. * LIFE CYCLE: The life cycle stage is growth. The market for manufacturing motor vehicles is consistently increasing. The products manufactured by this industry are profitable. Companies have been consistently opening new plats and employing over the past five years. Japanese and European manufacturers of motor vehicles have entered the market. Industry value added has been rising, along with the rise in GDP. Life Cycle Analysis General improvement in availability of trained manpower and good infrastructure is required for sustainable growth of the industry. Keeping this in view, the Indian Government has launched a unique initiative of National Automotive Testing and R&D Infrastructure Project (NATRIP) to provide specialised facilities for Testing, Certification and Homologation to the industry. A similar initiative is required for creating specialised institutions in automotive sector for education, training and development. The auto industry has grown in the clusters of interconnected companies which are linked by commonalities and complementarities. The major clusters are in and around Manesar in North, Pune in West, Chennai in South, Jamshedpur-Kolkata in East and Indore in Central India. The Government is planning to create a National Level Specialises Education and Training Institute for Automotive Sector and to enhance the transportation, communication and export infrastructure facilities. The contribution of automotive sector in the GDP of India is expected to double by 2016 through major spotlight on export of small cars, Multi-Utility Vehicles, Two- and Three-wheelers. * INDUSTRY ASSISTANCE: The automobile industry has a defined its target in the Automotive Mission Plan as â€Å"To emerge as the destination of choice in the world for design and manufacture of automobiles with output reaching a level of USD 145 billion accounting more than 10% of GDP and providing additional employment to 25 million people by 2016†. In order to achieve this plan interventions are required from both Industry and Indian Government. The Indian Government would play a key enabling role in facilitating infrastructure creation, promote the country’s capabilities, create a favorable and predictable business environment, attract investment and promote research & development. The role of Industry will primarily be in designing and manufacturing products of world-class quality standards, establishing cost competitiveness, improving productivity of both labor and capital, achieving scale and R&D enhancing capability and showcasing India’s products in potential markets. In order to achieve these goals the following key recommendations have been made in the Automotive Mission Plan to the Indian Government and Industry: Manufacturing and export of small cars, multi-utility vehicles, two- and three-wheelers, tractors, components to be promoted. Care to be taken of negative like and rules of the country with current negotiation of Free Trade Agreement and Regional Trade agreement with countries like Thailand, Singapore, Malaysia, China, Korea, Egypt, Gulf etc. Attractive Tariff Policy which may follow attractive investment. Specific measures will be taken for expansion of domestic market. Incremental investment of USD 35 to 40 billion to Automotive Industry during the next 10 years. National Road Safety Board to act as the coordinating body for promoting safety. Inspection and Certification system to be strengthened by encouraging public-private partnership. National level Automotive Institute for training on automobile at International Training Institutes (ITIs) and Automotive Training Institute (ATIs) to be set up. An Auto Design Centre to be established at National Institute of Design, Ahmadabad. National Automotive Testing and R&D Implementation Project (NATRIP) to act as Centre of Excellence for Technical Design Data. Integration of Information Technology in manufacturing to be promoted. R&D for product, process and technology to be incentivized. Road Map for Auto Fuel Policy beyond 2010 would be drawn. The profitability of motor vehicle manufacturers has been rising over the past five years, mainly due to rising demand and growth of Indian middle class. Major players of the industry, like Maruti Suzuki India and Tata Motors have been recording profits of 6% to 11% from the past five years. Whereas, earlier profit margins in the industry were only 1. 5% to 3%. Cost of material has reduced from over 85% in the year 2001-2002 to under 80% in the year2008-2009. Wages and salary as a percentage of revenue has been declining and with the increasing labor productivity this is expected to decline further in the coming years. * CAPITAL AND LABOR INTENSITY: The level of Capital Intensity is high. The level of labor intensity is medium. The motor vehicle manufacturing industry requires significant level of capital investment. Value is added through the automated manufacturing and assembly of costly components. Labor input is required in the manufacturing, assembly, and finishing processes. In order to achieve and retain competitiveness, vehicle manufacturing industry depends on its capacity and speed to innovate and upgrade. The most imperative indices for competitiveness in the industry are productivity in both labor and capital. * TECHNOLOGY AND SYSTEMS: The level of technology change is high. The rate of change in technology is medium. Investment in technology by producers has been on the rise. The automobile industry in India has seen an enormous development in the engines which are being used. Carburetor engines have become obsolete and Multi Point Fuel Injection (MPFI) engines are the order of the days in patrol cars. The Diesel engines have also undergone a sea change from the time Rudolf Diesel invented it way back in the 1892. Today Common Rail Direct Injection (CRDI) is the order of the day. Multi Point Fuel injection (MPFI):The fuel injects were used to meet stricter emission norms as it keeps pollutants to bare minimum and drives the maximum performance out of a vehicle by squeezing out the maximum mileage even from the last drop of fuel that goes into the engine. MPFI system injects fuel into individual cylinders after receiving command from the on board engine management system computer or Engine Control Unit (ECU). This technology results in superior fuel combustion, better fuel management, engine performance and reduced pollution. To get the maximum out from these types of engine one should use Premium petrol like XTRA Premium, Speed, and Power. Common Rail Direct Injection (CRDI): CRDI engine cars offer 25% more power than the normal direct injection engine with a superior pickup and torque, offering sometimes up to 70% more power than the conventional diesel engines. They are smooth, less strident, and immensely.

Development Education Essay

Individuals in society, as they grow in their respective environments, in an endeavor to fulfill their needs, encounter many challenges: environmental, social, economic, political and cultural. In everyday life therefore, they have to participate voluntarily or otherwise to overcome them, otherwise they are bound to remain in the same state or dwindle even further. As such, there is need for individuals to participate actively in the development of their communities, their nations and the world as a whole with a special reference to social, economic and political awareness. Kenyans are not facing any different situations. For example, in the education sector, progress towards attaining universal primary education, which was initiated by the incumbent government in 2003, has had the effect of increasing the enrolment by two million children. Recent enrolment gains have benefited the girls, resulting in near gender parity. Despite these gains, regional inequalities are pronounced, particularly in the enrolment of girls in the arid and semi-arid regions (Child, 2006). This initiative has had positive impact whereby the economic ability of the parents is not an excuse for failure to access basic education for their children. As the government endeavors to make this a reality, glaring issues should not be ignored. For example, the student-teacher ratio has increased, hence hampering delivery of quality education. There is dire need therefore to employ more teachers. Resources in the schools; such as text books, laboratory materials, computers among others are limited. What lingers in the minds of many is whether the introduction of free primary education was timely. Were economic issues such as the ability of the government to meet its obligation considered? If yes, would the education budgetary allocation cripple other pillar sectors of the economy such as Roads and Transport or Agriculture? May be the government would have to resort to external funding to finance its budget deficit, but with what implications? My own experience is that, the growing numbers of students in the public schools have been unmanageable with the available resources being stretched to the limit. Mature students have joined primary schools causing social tensions within the school environment. Since adult education programme is in place, such students would have been encouraged to enroll in that programme. It is possible that this was a political move to show the whole world how our government is ‘committed’ to providing education to all. Cultural issues have been a major impediment to provision of education to all. Some communities in Kenya do not encourage girls to take up education opportunities. Or even if they do, women are to play a specific role in society: to do household chores, bring up the children and take care of their spouses. It is no wonder, therefore, that early marriages are still rampant in certain communities. Some young girls fail to complete primary or secondary education because of early pregnancies. With such situations, realizing development is almost futile. The question is whether the government or the communities themselves have been or are committed. If yes, to what extent, and if no, then why and what are the implications? A case in point is in my home village, among the Giriama tribe in Kilifi District, Coast Province. Early pregnancies and marriages for the girls are rampant with little being done to the culprits. Those responsible for these ills in most cases are male adults, who are of sound mind. Hence, the noble effort of free primary education is not appreciated. In my opinion, the effort of the government and the local leaders in designing and implementing educational programmes for the citizens should involve the whole community. The adults could act as good examples, but they have to be sensitized on the importance of education to all. If the adults embrace change, and they actively participate in implementing it, less or no young girls will fall victim to these unfortunate circumstances. Social development in Kenya has also been hampered by diseases such as HIV/AIDS, malaria and tuberculosis. The current rate of infection for HIV/AIDS is 6. 1% of the adult population down from a prevalence rate of 16% in urban areas and 8% in rural areas in the late 1990’s. This is an encouraging situation with support from the government and its agencies, such as the national Aids Control Council and STDs Control Programme (NASCOP). (Child, 2006). What should not be ignored is about the victims themselves. How does the society engage them in economic, social and political growth of the country? There have been reported cases of stigma at the work place, in schools, religious circles and political arenas. With the availability of Antiretroviral drug therapy, infected individuals can almost live their full lives. It is therefore important for individuals to know their HIV status and be proactive in prevention of its spread. In Sub- Saharan Africa, Kenya has been placed 15th out of the 48 countries on good governance and economic management with an overall index of 59. 3. This index was pegged on the five pillars of good governance: safety and security, rule of law transparency and corruption, participation and human rights, sustainable economic opportunity and human development. (Otieno, 2001). This could be true; however, the index used the 2005 data as the baseline hence it is subject to a variety of opinions presently. As much as we would like to appreciate this growth, the ordinary citizen is still facing enormous challenges. 60% of the Kenyan population is still surviving on less than 2 dollars per day. The Kenyan government has defined the poverty line as 17 dollars per month in the rural areas and 36 dollars in the urban areas. The country lacks robust food production and is vulnerable to unstable rain patterns. (Child, 2006). With these statistics, the country cannot boast of excellent economic growth. It is not surprising therefore that the government’s domestic debt is growing twice as fast this year to seek more funds to finance social expenditure. At the community level, joblessness is still on the rise. As restructuring of government and private entities increases, more Kenyans are retrenched, rendering most of them poorer than they were before. Change is inevitable as companies struggle to stay afloat in the market. However,  alternative sources of income have to be provided or sought by the individuals themselves. For example, the government, through the Ministry of Local Government, has initiated the Rural Poverty Reduction and Local Government Support Programme (RPRLGSP) in providing clean drinking water, construction of schools, modern slaughter houses, solid waste management and rehabilitation (Ongwae, 2007). Some of these projects at the community level have provided a way of livelihood to the people. Citizens should not wait for government initiatives to participate in development. However, they need to be critically aware of the resources available within their environments and how to utilize them for their benefit. For example, instead of retired civil servants depending on their children for financial support, they can come together, identify joint projects and may access loans from financial institutions to start them off. Political structures on the other hand are a cornerstone to social and economic growth. Since independence in 1963, Kenya has had three heads of state. Political turbulences have been evident as the country struggles to embrace democracy. The state has witnessed a transition from a one party to a multi party system of government. Government officials have been associated with grand scale corruption malpractices taking the country to economic oblivion. A good example is the Anglo Leasing Scandal, where it was claimed that billions of shillings were paid to dubious companies within and abroad. The perpetrators of this vice have not been brought to book to date. It has been assumed that the law makers always enact laws to protect themselves. A bill was passed in parliament recently to stop the Kenya Anti –Corruption Authority from investigating and prosecuting the individuals with pending corruption cases before 2003, when the current government came into force. Evidently, the members of parliament may be protecting themselves. This therefore is a big challenge to the electorate as campaigns for elections due in December this year are in top gear. Politicians are shifting political alliances by the day and forming new ones. The current government was formed under a coalition of parties. As politicians are criss-crossing the country to secure civic and parliamentary seats, many more parties are finding common grounds to merge. This could be seen as a practice of demonstrating their democratic rights, though many questions linger about the seriousness of these individuals. Hence, should the electorate vote for the individuals by virtue of their political parties or the individuals’ ability to initiate development agendas? What of the politicians who give hand outs during campaign time? Do they realize that the citizens have problems only during the election year? Many promises have been made before by the same or other aspiring candidates. The performance of most of them has been dismal or at all. When they pass bills to reward themselves handsomely in salaries and allowances, who stands to benefit, them or the citizens? Is the economy stable enough to accommodate such hefty wage bill? The Kenyan politician in essence, has been known to be selfish to a larger extent. The electorate has to come to terms with this and cast a vote for a ‘new’ politician who is likely to initiate social, economic and political change. The citizen has to be critical in this political process and participate in the voting process wisely come the December elections. It is clear from this discussion therefore, that it is the citizen who has to participate actively to initiate social, economic and political change. This has to be done with a critical analysis of all the forces in place. It could take time, development could be gradual, but finally, every citizen will take responsibility for their actions and become agents of change for a better future for the generations to come. References: CHILD, K. (2006) The OneWorld Kenya Guide [Online] http://uk. oneworld. net/guides/Kenya/development? gclid=CIHot73j3o4CFRtAgQodkThZPQ [accessed on 18. 09. 07] ONGWAE, E. (2007) Initiative helps improve standards of life. Daily Nation 26 September 2007: p. 35 OTIENO, J. (2007) Kenya in League of 20 states, Daily Nation. [Online]. 26 September 2007. Available from: http://www. nationmedia. com/dailynation/printpage. asp? newsid=107244. [Accessed 29 September 2007] Isaac Oyugi Samwel.

Sex Trafficking And The United States - 1405 Words

The International Labor Organization estimated that there were 4.5 million victims trapped in forced sexual exploitation, or sex trafficking, globally. Most would believe that this is a problem that does not occur in the United States, but they would be wrong. In 2007 alone, 14,588 sex trafficking cases were reported in the United States and the problem is only getting worse. This research paper will discuss multiple topics such as the definition of sex trafficking, recruitment and those at risk, where it occurs, organizations, consequences, a healthcare provider’s role and a study on the attitudes of the public. The objective is to bring light to this problem and educate those who are reading (Polaris Project, 2016). Two definitions that are important to the topic of sex trafficking are what sex trafficking is and what a commercial sex act is. Sex trafficking is defined as when someone uses force, fraud or coercion to cause a commercial sex act with an adult or causes a mino r to commit a commercial sex act. A commercial sex act is defined as prostitution, pornography and sexual performance done in exchange for any item of value, such as money, drugs, shelter, food or clothes (Shared Hope International, 2016). Sex trafficking is considered a form of modern slavery. Under federal law, anyone under the age of eighteen that is persuaded into a commercial sex act is considered a victim of sex trafficking, whether it was forced or not (Polaris Project, 2016). There are threeShow MoreRelatedSex Trafficking And The United States1672 Words   |  7 Pageshuman sex trafficking, they think of heinous acts that take place in other countries where adults, children, girls and boys are exploited to perform sexual acts in exchange for money or goods against their will. They think it typically occurs in places that are less developed than the United States. However, the reality of this horrific crime is that it is taking place in the United States, and it occurs mor e and more each and every day. Young girls are not solely the victim of human sex traffickingRead MoreSex Trafficking And The United States1158 Words   |  5 Pagesprominent problem in my hometown, which was Sex Trafficking (ST). Coming from Houston, Texas, Sex Trafficking is one of the major hubs in the United States. Houston’s main highway I - 10 is the main road used to travel these victims to state lines to get them out of the country. A better definition of sex trafficking is when someone uses force, fraud or coercion to cause a commercial sex act with an adult or cause a minor to commit a commercial sex act. A commercial sex act is a list of things known as prostitutionRead MoreSex Trafficking Within The United States1355 Words   |  6 PagesBetween 14,500 and 17,500 victims are trafficked into the United States annually, and often, the average age of entry is thirteen to fourteen years old (Hodge, 2008). One victim recalls that her pimp, a man who controls sex wor kers and keeps the earnings, would take her and two other girls from the ninth grade out of school during lunchtime, have them do calls, and bring them back. She explains, â€Å"He knew how to read each girl—this one likes to party, that one needs a job, this one wants drugs.† ByRead MoreSex Trafficking Throughout The United States2098 Words   |  9 PagesSex Trafficking Introduction: When looking for topics to research I wanted to do something that was a prominent problem in my hometown, which was Sex Trafficking (ST). Coming from Houston, Texas, Sex Trafficking has the 2nd largest home in Houston. The main highway I - 10 is the main road used to travel these victims to state lines to get them out of the country. A better definition of sex trafficking is when someone uses force, fraud or coercion to cause a commercial sex act with an adult or causeRead MoreDomestic Human Sex Trafficking in the United States1300 Words   |  6 PagesDomestic Human Sex Trafficking in the United States Human sex trafficking and its sister category, Domestic Minor Sex Trafficking also referred to as DMST, (Kotrla,K. 2010) is the most common form of modern day slavery. In the United States there are an estimated 293,000 youth who fall under high risk factor or DMST (Walker-Rodriguez, A. Hill, R. 2011). Many men prey on the at risk youth to make a fortune for themselves. DMST exposes the youth to a life filled with violence, abuse that is bothRead MoreEssay on The New Slave: Sex Trafficking in America910 Words   |  4 PagesThe New Slaves: Sex Trafficking in America When most Americans hear the term ‘sex trafficking’ thoughts of helpless women and children in poor, developing, countries come to mind. However, most Americans would be downright shocked and dismayed to learn that many victims of sex trafficking reside right here in the United States. Moreover, many of the victims of sex trafficking in America were victimized by other Americans. This is a pressing national issue to which neither small, rural towns or largeRead MoreProstitution, The Act Of Prostitution1324 Words   |  6 Pages Prostitution, the act of â€Å"providing or receiving sexual acts, between a prostitute and a client, in exchange for money or some other form of remuneration† (Hock 557). The idea of exchanging sex for valuables has been seen since the beginning of human society; the first reported data about prostitution was reported around 3000 B.C.E in one of the first known civilizations, Mesopotamia (Caraboi and Fierbinteanu 362). Also, prostitution is often referred to as â€Å"the world’s oldest profession.† TodayRead MoreVictims of Trafficking Protection Act Essay1716 Words   |  7 Pagesfeature to the VTVPA is that the United States will penalize countries if they do not comply with the VTVPA (Holman, 2009). This is an imperative feature and I think that it should be implemented throughout every single piece of legislation that deals with trafficking. Countries should be held accountable if they do not comply. The only way that sex trafficking can be officially over is if every single country complies with all the legislation. The United States looks at six different factors whenRead MoreThe Problem Of Child Sex Trafficking1199 Words   |  5 PagesChild Sex Trafficking Have you ever walked into Wal-Mart and taken the time to look at the numerous pictures of missing youth that is plastered on the wall? When looking at how long they have been missing, it ranges anywhere from months to years. Looking at their age, both boys and girls, it is hard not to wonder if these kids are being trafficked. Child sex trafficking, also known as human trafficking, is a major issue that is not only plaguing the United States, but the world. ResidingRead MoreSex Trafficking : A Common Issue For A Long Time1394 Words   |  6 Pages Sex trafficking can happen everywhere. People do not even realize when it is happening. Someone could be living their life, just as they normally do, and decided to go to the mall. Sometimes they may not even know that a little kid is going to be kidnapped, and later raped. This is what sex trafficking is. Sex trafficking is commonly defined as when violence, drugs, lies, or any other form of coercion is used to force another perso n to have sex against their will. (Sex Trafficking in the U.S, 1)