Outsourcing In Logistics Sector Essays - Outsourcing, Offshoring

Outsourcing In Logistics Sector Introduction : Nowadays, many organisation are outsourcing their non- core activities to an external agents. Distribution is one of these activities as distribution consider as a non-core activity for many firms. Although, there are many advantage for outsourcing, there are also risks and disadvantage in this process. In this essay I would explain the term outsourcing and explain why organisations are preferring to outsource some of its functions in today's environment. Also, in this essay it has been tried to analysis the advantage and disadvantage of the outsourcing process and its risks towards the organisation. The word outsourcing could be described as the contractual relationship with a specialised outside service provider for work traditionally done in-house. Outsourcing could also be defined as the use of external agents to perform one or more organisational activities. In the last decade or so there has been a trend, particular among large scale companies, to hand over the whole or part of the distribution function to the external agents. One should emphasis that outsourcing is an issue that is not specific to distribution. Many other organisational functions, such as information system, building maintenance, etc?, have been outsource for many years in organisations. There are different reasons for organisations outsourcing their distribution function. More and more organisations today face a dynamic and changing environment. This, in turn, is requiring these organisations to adapt. Competition is also changing. The global economy means that competitors are likely to come from across the ocean as from across town. Successful organisations will be the ones that can change in response to the competition and changing environment. In other words, they will be flexible. Therefore, today's organisation stand in sharp contrast to the typical bureaucratic organisations that have many vertical levels of management and where control is sought through ownership. In such organisations, Research and Development are done in-house, production occurs in company-owned plants, and sales and distribution are performed by the company's own employees. To support all this, management has to employ extra personal including accountants, human resources specialist and supply chain management specialists. However, nowadays successful organisations outsource many of these functions and concentrate on what it do best. Outsourcing can help organisations to reduce the impact of change in the environment by outsourcing some functions to specialist companies on that function who have more expertise and focus to concentrate on managing change. So, outsourcing could consider as a strategy to manage change in the external environment. Globalisation is another aspect which has impact upon increasing outsourcing. Nowadays, many companies are turning their attention to foreign markets, the number of global companies are accelerating. But these companies do not have in-house expertise to negotiate or operate the supply chain process in international markets. So, they need to outsource their supply chain to logistic companies which have international expertise in the distribution function. The another reason for increasing outsourcing is the increasing complexity of distribution networks. Storing and moving goods have become more complex as the technology is advancing too fast. A manufacturing organisation normally do not want to waste its management resources to this functions. Therefore, they prefer to outsource this function to logistics companies which possess all the necessary skills and technology in this service. For example, Marks and Spencer, one of the world's leading retailers has outsource its distribution function to Exel , one of the leading companies in supplying logistic service. M&S has approached Exel to take control of its complex distribution service. Now, Exel provides a distribution service for 23 M&S stores in South England, and also deals with M&S in France, Spain and Hong Kong. Exel has bought a revolutionary technology to M&S export operation by enabling 10 suits to be shipped in the space normally occupied by four garments. In addition, M&S customers start to get a high level of service because stores could be replenished quickly. All these and other benefits M&S has gained through outsourcing its complex distribution service. There are many advantages which a company could get from outsourcing its distribution functions. It could reduce the operating cost of the firms. A study which has been conducted in 1993 reported that a company could reduce 9% of its operating

SWOT and Porter Five Forces Analysis of Royal Dutch Shell The WritePass Journal

SWOT and Porter Five Forces Analysis of Royal Dutch Shell Abstract SWOT and Porter Five Forces Analysis of Royal Dutch Shell . The company’s major strength includes a global presence with globally recognized brands, growing financial strength, significant manufacturing and technological capabilities and diversified portfolio of products. The global operations of the company are associated with difficulties of standardising quality due to varied operational conditions. Furthermore, the company is faced with stiff competition from the leading suppliers in the industry including Exxon Mobil Corporation, Total S.A. and BP Plc. However, the company can use differentiation strategy capitalizing on its globally recognized brands to establish a competitive edge over the competitors. In addition, the company can expand its global presence through striking strategic partnerships with local small companies in foreign markets to enhance penetration in the markets. Introduction Royal Dutch Shell plc commonly known as Shell is an independent company with its registered office located in LondonUK and headquartered in The Hague, Netherlands operating in the oil and gas industry globally (Reuters, 2012). The operations of the company are divided into three main segments including; Downstream, Upstream and Projects and Technology. The Upstream segment combines activities involved in the search for and recovery, liquefaction and transportation of oils and natural gas and wind energy. The Downstream segment is engaged in the activities of manufacturing, distributing and marketing of chemicals and oil products. Finally, the Projects and Technology segment includes all the critical support functions of the company’s core business in the Upstream and Downstream segments (Shell Plc, 2012). In 2011, the company had revenues of 470,171million US Dollars and based on these revenues, the company is ranked as the second largest company worldwide (Bloomberg, 2012). A s at the close of business on Tuesday 11th December 2012, the company was ranked as number one on the FTSE100 Index with a market capitalization of 135,511.7million US Dollars (Stock Challenge, 2012). Â  Shell SWOT Analysis The company has a number of strengths. Firstly, Royal Dutch Shell Plc is a leading company globally in the Oil and Gas industry with global presence in many countries. Consequently, the company derives its strength in this global image in the industry. Secondly, the company has recorded growing financial performance since the 2008/2009 economic downturn. It therefore has a strong capital base for competing in the competitive industry. Thirdly, the company has established strong brands recognized globally like Shell V-Power and the Shell FuelSave. Finally, the company has strong exploration and technological capability as an internal strength coupled with a diversified portfolio of products in the upstream and downstream segments of the company (Shell Plc, 2012). The size and scale of the global operations of company may be a weakness due to the difficulties of the company to control quality and standards of its products since the operational conditions of different refinery sites differ. This also impacts negatively on the administrative efficiency and effectiveness of the company’s management. Exposure to different regulatory regimes through the global presence of the company presents difficulties in formulating uniform policies applicable to the global operations of the company (Shell Plc, 2012). There is increasing awareness and concern for environmental sanity where reduced carbon emission is a necessary consideration for most oil-related products. Consequently, there is increasing demand for liquefied natural gas as a source of clean energy. This is likely to increase the company’s revenues from liquefied natural gas. There are also opportunities for the company to expand to the emerging economies like China through joint ventures, mergers and acquisitions like acquisition of Neste Oil Oyj in Poland (Reuters, 2012b). The economic slowdown in the US and European Union due to the debt crises involving member countries presents a threat to the company’s profitability. Terrorism activities threaten the company’s global functions by increasing related business operational expenses. Increasing strict environmental regulations is also a threat to the current and future operations of the company which will require more efficient and environment friendly exploration and manufacturing technologies. Fluctuating interest rates and the war in the Middle East countries is also a threat to the company due to its global operations. Porter’s Five Forces Analysis of Shell Porter (2008, p.80) identifies five forces that can be used to analyse the competitiveness of a company’s industry of operation. The forces include the threat of new entrants, threat of substitutes, bargaining power of suppliers and buyers and rivalry among existing competitors. Royal Dutch Shell Plc has established large scale operations in more than 80countries enjoying economies of scale, global image with established strong brands which makes it hard for new entrants. Therefore the threat of new entrants is low due to the high capital requirements to set up operations. Threats of substitutes are high for the company. This is because oil-related products, chemicals and natural gas produced by different companies are highly substitutable. Major competitor products can be used as substitutes for the company’s products. Therefore, the threat of substitutes for the company is high. Royal Dutch Shell Plc has embraced a vertical integration growth strategy which involves acquiring and merging with companies at different levels of operation and therefore it has significant influence on its supply chain. Furthermore, the company has enhanced its technological capacity through the projects and technology segment of its business (Reuters, 2012). Therefore, the bargaining power of suppliers is low. Oil and gas are essential products in any economy. Economic production processes in an economy make use of oil. This explains why in some developing countries oil supply is under state agencies. Furthermore, the oil industry is characterized by companies coming together to form cartels that would enable them control the market (Bloomberg, 2012). Furthermore, most of the buyers of oil products buy in bulk and therefore loss of one buyer would significantly affect the company’s revenue. Consequently, the bargaining power of buyers is medium. The major competitors of the company include Exxon Mobil Corporation, Total S.A. and BP Plc which have also established global presence in the oil and gas industry (Hoovers, 2012). Rivalry with these companies is high due to branding and differentiation strategies applied by the companies in their operations globally. The companies have established brands recognized globally and major clientele which makes rivalry in the industry high. Conclusion Royal Dutch Shell Plc has established strong brands recognized globally enhancing its image in the global market. Despite the complexities and risks that are associated with the global operations of the company, there are opportunities for the company to expand and grow its operations in the emerging markets. The company can use a differentiation strategy to position its products globally as superior using its brand names. To deal with the risks of globalized operations, it is advisable that the company use strategic partnerships with the local operators in the new markets to enhance its penetration in the markets. Furthermore, the company can establish its competitive advantage increasing its control over the supply chain through more vertical integration mergers and acquisitions. Lastly, to increase efficiency of the company’s operations, there is need for re-engineering of the production process and adoption of new efficiency technologies. References Bloomberg, (2012) Royal Dutch Shell Plc Financial Statements, available at http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=RDSA:LN accessed on 14th December, 2012. Hoovers, (2012) Top Competitors for Royal Dutch Shell Plc, available at hoovers.com/company-information/cs/competition.Royal_Dutch_Shell_plc.01e84f5552dabef3.html accessed on 14th December, 2012. Porter M. E. (2008) The Five Forces that Shape Strategy, Harvard Business Review, pp.79-94. Reuters, (2012) Royal Dutch Shell PLC: Company Overview, available at reuters.com/finance/stocks/overview?symbol=RDSa.L accessed on 14th December, 2012. Reuters, (2012b) Royal Dutch Shell PLC: Latest Key Developments, available at reuters.com/finance/stocks/RDSa.L/key-developments accessed on 14th December, 2012. Shell Plc, (2012) Our Business: Shell is Organised into: Upstream, Downstream and Projects and Technology, available at shell.com/home/content/aboutshell/our_business/ accessed on 14th December, 2012. Stock Challenge, (2012) FTSE All-Share Index Ranking as at Close on Tuesday, 11th December 2012, available at stockchallenge.co.uk/ftse.php accessed on 12th December, 2012.

The importance of costs. (Need different writer for 534474.) Essay

The importance of costs. (Need different writer for 534474.) - Essay Example This paper seeks to discuss the importance of understanding ‘cost’ from the managers’ perspective. Introduction The managers are involved in decision making of various types in the business, and the understanding in the following lines facilitate easy grasp of the concept of costing in relation to business management. 1. Behavior of cost The cost could be classified basically into variable and fixed or direct and indirect. All variable costs directly involved in manufacturing of a product or rendering services include direct material, labor or overheads which are variable in nature in tune with the level of production. Whereas, the ‘indirect costs’ have a tendency to remain constant within a range and may be called as ‘capacity costs’. 2. The objective or the purpose for which the cost is being considered There are various decision making situations in a business which include pricing, make or buy, sub-contracting and capital investment a part from cost control, budgeting and variance analysis which are done on a regular basis. The analysis of data and application of the costing techniques vary according to the objective. The intervention of the manager for decision making purposes is involved mainly in the situations like pricing, make or buy, outsourcing, sub-contract and capital investment. ... In this paper, while discussing about the various methods, the influence of the variable and fixed costs in the decision making and the appropriate situations for using a particular method of costing is considered for better understanding. 4. Opportunity cost In the final count, the internal calculations need to pass the test of ‘Opportunity Cost’ because, any decision which is at least not compatible to the ‘opportunity cost’ may have to be discarded, because the opportunity cost it is not a simple calculation of future costs but, involves imputed costs. The opportunity cost means â€Å"The  cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action†. (Investopedia, 20110) Generally speaking, the managerial decision is not introvert in nature, but takes into account the economic justification considering the external environment and the margi nal efficiency of the capital needs to justify a proposal. For instance, if the opportunity cost of capital does not justify a management decision, it signifies that the opportunities elsewhere available would yield superior returns on the capital invested. Methods of costing and its relevance to decision making The method of costing to be adopted depends on the nature of manufacturing activity. However, the paper is not dealing with the methods per se, in relation to the procedural aspects related to Job Costing, Batch Costing or Process Costing, in line with the objective of the study. The analysis is rather with reference to managerial accounting perspective for the purpose of decision making. For instance, Rama Gopal, C. (2009, p. 473) states

Latin America Essay Example | Topics and Well Written Essays - 1500 words

Latin America - Essay Example Last but not the least; deforestation is discussed which is being forecast as pending disaster in Amazonia, Brazil. Some important points are highlighted in this report including the reasons of upcoming disaster and its consequences on the overall economy. Answer 1: Diagnostic characteristics involve the regional, economic, social and cultural differences between Mainland and Rimland cultural areas of Middle America. A well known geographer, John Augelli has highlighted these characteristics and identified Euro- Amerindian as Mainland culture and Euro- African as Rimland culture. It is important to note here that Middle America has great cultural diversity and these groups are considered a main reason of this diversity. Robert B, Kent (2006) has explained that in the areas of Middle America, the RIMLAND population and culture reflect a blend of Euro- African influences. This cultural group covers the areas of West Indies as well as the areas running along east part of Central America. Moreover, RIMLAND cultures are also linked with northern nations of Europe including Great Britain, France and Netherlands. Different European colonies have also emerged that are composed of this cultural group. Rimland cultural group is largely associated with agriculture and plantation economy. Commercial trend of agriculture is also common in this group. Moreover, they are also serving as efficient workers in labor market and various factories. The Euro- Amerindian population of Middle America is associated with Mainland culture. In the beginning, this cultural group prefers to live in Spanish colonies due to the cultural orientations. Nowadays, Mainland cultural group enjoys high estates in Central America. They are self sufficient people associated with agriculture and industry. Answer 3: Most often it is widely claimed that Mexico is the most populated and too crowded country. Among Central American countries, Mexico has the highest population

That Intellectual Property Right System. Commercialization of Art Essay

That Intellectual Property Right System. Commercialization of Art - Essay Example Cuban writer, Geraldo Mosquera has addressed the paradox that the globalize vortex of mixing, multiplying appropriation and re-semanticising takes place in a situation when all cultures steal from one another either from dominance or subordinations. (Welchman, 2001). Intellectual property rights system and misappropriation of indigenous knowledge without prior knowledge and consent of indigenous people bring to mind a feeling of anger and a mentality being cheated as also helpless in knowing nothing about intellectual property rights and indigenous knowledge piracy. This is equal to robbing indigenous person of their resources and knowledge through monopoly rights. The intellectual property rights system, mainly favors the industrialized countries in North having enough resources for claiming copyrights, resulting in exploitation and appropriation of hereditary assets, knowledge etc. as also the culture of local people for marketable and commercial purpose. We can also see that Intellectual Property right system ignores the contribution of the indigenous people and do not value the close interrelationship between the indigenous people and their knowledge as also the genetic resources of which the Intellectual property right system is taking advantage, and it is really painful for the original authority as the Intellectual property right system is concerned only with the benefits that they are gaining from the profit-making exploitation of these resources. There is a dire need to protect and safeguard indigenous knowledge today, as also the self determination is important. In Asian regions, many indigenous people have come together now and people have started realizing the importance and the need to protect their indigenous knowledge and culture, and aim towards reclaiming their right to self determination and indigenous knowledge. However, today slowly the indigenous people have started realizing the importance of the issue and have to give importance to the following points regarding activities related to indigenous knowledge and culture: 1) Try to strengthen indigenous people's organizations and communities, which will enable them to collectively address the local concerns related to the indigenous knowledge and the intellectual property rights system. 2) The indigenous people should continue to strengthen their self determinations , as this can help them stand against the threats by intellectual property rights systems on the indigenous knowledge and genetic resources. 3) The level of awareness among the indigenous organizations and communities should be raised more which will help them being more aware about the changing global trends and developments in the Intellectual property rights system as they apply to life forms and indigenous knowledge. (Possey & Dutfield, 1996). "Commodification of art comes under both privileging the exchange value over the work performed by art and of evaluating the importance of the materiality of the art work". "The approach to art which can be developed from Irigarays writing is a result of two factors, one the critique of commodification and of the model of experience based on specularity of male desire, and other side the rethinking of opposition between the sensible and intelligible through poetics of the elements." The

Zimbabwe Country Debt and Economic Performance

Zimbabwe Country Debt and Economic Performance Overview The debate on the effect and direction of causality regarding debt on economic growth has attracted significant academic interest since the last quarter of the 20th century. This question has become more relevant in the context of the so-called Least Developed Countries (LDCs) whose economies typically contain oversized debt, exhibit stunted growth and have often defaulted on outstanding debt. This research sought to build on the existing body of literature and conditions in Zimbabwe over the past 20 years, with special reference on the period 1995 to 2008, and draw inferences on the role that debt played in Zimbabwes economic performance over the same period. This chapter sets the stage for the study through reviewing the background to the research study, outlining the problem statement, discussing research objectives and methods among other things. The framework introduced and described herein shall be expanded on application in the later stages of the research project and any necessary adjustments will be incorporated. The chapter, by outlining in advance the research expectations, forms the basis upon which the outcome and conclusions of the research shall be assessed. Background of Zimbabwes Debt Zimbabwe just like any other Less Developed Economies (LIC) has relied on both external and domestic finance to fund its developmental projects. External debt comprise foreign currency denominated liabilities owed to non-resident entities, in the form of both medium to long-term loans and short-term trade facilities, while domestic debt is debt owed to residents and is contracted mainly through issuing treasury bills and bonds as well as utilization of the overdraft window at the Reserve Bank of Zimbabwe (RBZ). The country has not been able to pay its external and domestic obligations for sometime against the background of progressive decline in export performance and the depletion of the foreign currency reserves. The meagre foreign currency resources available have been allocated towards critical social needs such as education and health delivery systems. Consequently, the countrys ability to settle obligations has been severely undermined culminating in accumulation of external payment arrears to US$4 487 million as at 31 December 2009. This represents a more than 60% increase over the 2000 figure of $2.75 billion. This coincides with a period when the economy had entered into a sustained phase of economic decline and hyperinflation. It is argued that debt overhang has been a stumbling block towards economic recovery initiatives of the country and has impacted negatively on the countrys international credit rating, a development which has been a major deterrent to potential foreign investment and credit inflows. The total debt has been growing from 1990 as shown in the graph hereunder: Fig. 1 Debt and GDP Trend for Zimbabwe Source: Data complied from Reserve Bank of Zimbabwe and The Ministry of Finance in Zimbabwe Zimbabwe has not been able to pay its debt obligations for nearly a decade from 1999 against the background of progressive decline in export performance and depletion of foreign currency reserves, due to restrictive measures imposed on the country. The total debt increased from $2.9 billion in 1990 to $6.9 billion in 2010 and the debt burden is a stumbling block towards economic recovery of the country and has impacted negatively on the countrys international credit rating, a development which has been a major deterrent to potential foreign investment and credit inflows. Against this backdrop, it is imperative that the country develop sustainable strategies to deal with the debt overhang problem. As at October 2010, the external debt stock was 118.4% of GDP, which is above international debt sustainability benchmark of 60%. Zimbabwe is in the process of drafting a cocktail of measures to expunge the debt obligations. A number of options which can be implemented to deal with the debt burden are, (a) Equity Anchored Debt Resolution which involves external new borrowing by the country to retire the totality or part of external debt, using identified public assets as collateral, (b) Brady plan where Zimbabwe can engage other nations who can guarantee its securitized debt, (c) Foreign Direct Investment (FDI) Backed Debt Clearance Strategy which is a strategy designed to clear Zimbabwes debt and debt arrears without direct and immediate payment by Government of Zimbabwe, (d) Debt re-scheduling, and (e) Heavily Indebted Poor country (HIPC) Initiative which is a debt reduction strategy for heavily indebted poor countries pursuing IMF, and World Bank supported adjustment and reform programs. The debate on the debt resolution issues in Zimbabwe has been taking place in the absence of a proper analytical background or framework that captures the real dynamics behind the debt issue. This research contributes to this critical discourse in Zimbabwe through providing that analytical and objective framework. Problem Statement Growing public debt is a worldwide phenomenon and it has become a common feature of the fiscal sectors of most of economies. Poor debt management and a permanent growth of the debt to Gross Domestic Product ratio may result in negative macroeconomic performance, like crowding out of investment, financial system instability, inflationary pressures, exchange rate fluctuations and more importantly adverse effects on economic growth. In fact the theoretical literature has summarized the following channels through which external and domestic debts affects growth negatively namely; debt overhang, liquidity constraint, fiscal effect, productivity suppression and reduction in human capital accumulation. There are also certain social and political implications of unsustainable debt burden. Persistent and high public debt calls for a large piece of budgetary resources for debt servicing. Consequently, the government is forced to cut allocations for other public services and it faces serious di fficulties in executing its electoral manifesto, if it has. While the negative effects of public debt are well documented, there is no consensus on the optimum impact and the direction of causality. Countries with better economic performance may also better deal with the public debt phenomenon. In fact higher economic growth in turn increases a countrys creditworthiness and this may attract more capital inflows. If the capital inflow is long term or Foreign Direct Investment (FDI), and the debt is applied towards enhancing the countrys productive capacity and capital accumulation, the impact of debt on economic growth will be positive. There have been several attempts to empirically assess the public debt-economic growth link, in the context of other antecedent variables mainly by using Ordinary Least Squares (OLS). Most of the earlier empirical studies include a fairly standard set of domestic debt, policy and other exogenous explanatory variables and the majority found one or more debt variables to be significantly and negatively correlated with investment or growth (Krugman, 1988; Borensztein, 1990; Greene and Villanueva, 1991; Deshpande, 1997 and more recently Pattillo, Poisson, and Ricci, 2004). Among developing countries evidences supporting the debt overhang hypothesis features research from Iyoha (1996), Fosu (1999), Mbanga and Sikod (2001), Maureen (2001) and Clements, Bhattacharya, and Nguyen (2003). The rationale of this study was driven by the scant amount of research in developing nations investigating the link between public debt and growth taking into account the causality and endogeneity issues. Although there is a substantial literature on the impact of public debt on growth, relatively few studies have been conducted on a sample of developing economies exclusively and particularly for Africa, but the latter has remained one of the continents with the highest and worrying growing level of public debt. This research aims to analyze the impact of public debt on the economic growth of Zimbabwe over the period 1990-2000. This study is based on the small developing state, Zimbabwe, and it provide a good case study because as most low income countries, it has limited access to international capital markets and thus the impact of external debt and domestic debt on these economies can be different as compared to emerging market countries. Moreover external debt may have indirect effects through private and public investment through the debt overhang and crowding out effects. Further, one should also not ignore the indirect effects of debt accumulation and service through private investment (debt overhang) and public spending (crowding out). Thus given the possibility of endogeneity and important feedback effects, the research uses the dynamic time series analysis, namely a Vector Autoregressive framework. The motivation to use this framework is that it allows important insights on the role of public debt on, not only economic growth but ultimately on private and public investment as well. Statement of the Research Objectives To develop a pragmatic model to understand the relationship between national debt and economic performance To ascertain the relevance of debt in determining economic policy To establish critical benchmarks that developing countries can use to enhance bond markets. Key Research Questions What are the drivers for the level of debt in developing countries? What are the determinants of economic performance? What role do stocks, bonds and alternative asset classes play in resolving country debt? Are prescriptive models and or solutions on debt from developed economies workable for developing nations such as Zimbabwe? Hypothesis In undertaking this research, emphasis is to test the following hypothesis upon which the results of this study are based: Public debt has a negative influence on the economic performance of a country. Zimbabwes economic decline is attributed to heavy debt overhang. The alternative hypothesis of this study is as follows: Public debt does not have any influence in the economic performance of a country. Zimbabwes economic decline has no relationship with public debt. Definition of Terms Definitions form an integral part in the compilation of the research. The definition of terms given below, where used consistently in the entire research report. Public Debt this is defined as the total debt owed by the Central Government which include both domestic and external debt, Bloomsburg (2007). External Debt It refers to the part of a countrys debt that is owed to creditors who are not residents of the country, Bloomsburg (2007). In other words it refers to the obligations that are owed by residents to non-residents. Debt Service refers to the future debt repayments of both the principal and interest amount. Economic Performance refers to those issues dealing with the amount and value of money, wealth, debt, and investment, SDI (1996). It is the general outlook of the economy as measured by relevant economic indicators such as GDP/GDP per capita. Country Debt refers to total obligations owned by the country to non-residents. Debt Sustainability The OECD Economic Surveys (2002) define debt sustainability as the ability of government to service its borrowings, both internal and external without resorting to rescheduling or accumulation of arrears. Thus, debt is sustainable when it can be serviced without resorting to exceptional financing or a major correction in the future balance of income and expenditure. Debt sustainability relates to the assessment of the level of debt that can be serviced without resorting to exceptional financing or a major correction in the future balance of income and expenditure. Research Design The type of research design adopted is both experimental and correlational in nature. The study will triangulate correlation and qualitative aspect to increase the degree of control over factors reviewed. The specific focus on Zimbabwe draws understanding of the study as a case study. Robson (2002:178) defines a case study as, a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence. The purpose of the study is to examine the relationship between variables, in this instance, developing country debt and economic performance. The degree of control on factor variables in this research will clearly be moderate as the role of environmental influence and human perception will relatively be inconsistent. Secondary Research (Correlational Research). To assess the empirical relationship between the major variables, that is debt and economic growth, the research makes extensive use of econometric modeling. The modeling stage incorporates other variables, which although not underlying the core objective of the relationship being analysed, are considered relevant explanatory variables to the dependent variable. The causal effect among the variables is often indirect, has significant components of the feedback effect and exhibits elements of endogeneity. To account for this, the research uses dynamic time series analysis, namely a Vector Autoregressive framework. The motivation to use this framework is that it allows important insights on the role of public debt on, not only economic growth, but ultimately on private and public investment as well. Advance filtration of the modeling variables to enhance model purity and relevance is achieved through various forms of pre-modeling tests. The univariate properties of all data series are investigated to determine the degree to which they are integrated, provide valid statistical inference and avoid problems of spurious relationships. Both the augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) unit-roots tests will be employed for that purpose to show whether the variable are integrated of order 1 (I(1)) and thus stationary in difference. The time series characteristics of the data will be analysed by utilizing the statistical tools such as the R-squared, unit roots, the t-statistic, the probability value (p-value) and the Dubin Watson Statistic (DW statistic). Justification of the Vector Autoregressive Framework Public debt does not only affect growth a priori (that is in the expected negative effect on economic growth), but countries with better economic performance may also better deal with the external debt phenomenon. In fact higher economic growth in turn increases a countrys creditworthiness and this may attract more capital inflows. If the capital inflow is long term or Foreign Direct Investment (FDI), the need to borrow may decrease. Moreover external debt may have indirect effects through private and public investment through the debt overhang and crowding out effects. In addition, one should also not ignore the indirect effects of debt accumulation and service through private investment (debt overhang) and public spending (crowding out). Thus given the possibility of endogeneity and important feedback effects, we use dynamic time series analysis, namely a Vector Autoregressive Framework, to analyse the hypothesized link. Such a framework will allow important insights on the role of public debt not only on economic growth but ultimately on private and public investment as well. Significance of the Study. The envisaged modelling framework will provide debt managers in Zimbabwe and the region with an objective and efficient tool to analyse and cope with vulnerabilities in their public debt portfolio. This awareness shall be enhanced by the post-modeling user test and analysis performed as part of this research. The research focuses on country specific factors and seeks to contribute to the development of econometric modelling in Zimbabwe and comparable countries in the region. The precision of policy making and public finance management in Zimbabwe is severely weakened by lack of quantitative insights into the workings of the economy. Over the years, little or no attempt has been made to scientifically assess the impact of the countrys runaway debt on such variables as economic growth, provision of social services and Foreign Direct Investment flows. This research represents an important step towards addressing this dearth of analytical insight. Chapter Conclusion The above chapter highlighted the core research problem, research objectives, research questions and the research hypothesis adopted to develop econometric model output for this paper. In the following chapters the researcher shall review as follows: Chapter 2: The literature review Chapter 3: The methodology Chapter 4: Findings and detailed analysis of the Zimbabwean market Chapter 5: Conclusions Chapter 6: Recommendations

A Missed Opportunity :: Personal Narrative Writing

A Missed Opportunity Every time we had visited Williamsburg, my mother had always wanted to see the famous Fife and Drum Corps. Dressed in full costume of red coats and tri-corner hats, these re-enactors parade down the Duke of Gloucester Street playing their instruments in a â€Å"call to arms† of the town’s militia. These men have always been one of the main attractions of Williamsburg and one of the symbols of the colonial area. They perform only once or twice a week and by either bad luck or fate, my mother has never actually seen them march. The single time that she did wait for their performance to start, it was cancelled due to bad weather. It was the second day of our family’s annual three-day trip to Colonial Williamsburg. We had spent the majority of the day strolling about the colonial area, and tensions were getting high. My brother, as the middle child, always picked the most inopportune times to annoy my sister, the youngest. After several near fights, my parents thought that a little separation was in order, at least until dinner. My mother suggested that we go see a program entitled â€Å"Dance: Our Dearest Diversion†. Of course, she knew that neither one of us would care to go see the show, being as uninterested in colonial dancing as a cat is of swimming. Per tradition, my brother and I had earlier in the day bought colonial styled games. He had chosen a handsome set of Fox and Geese, while I had decided on the more exotic and unknown Mancala. All the game consisted of was a flat board with fourteen pits on it, two of the pits being slightly larger than the rest. The bigger pits were at the ends of the board, and the other twelve were in two rows between them. Those pits had four stones (or flattened marbles) in them, and the object of the game was to capture the most stones. According to the little pamphlet that came with the game, Mancala required more mathematical reasoning than sheer luck. We had sat under the shade of one of the numerous trees that lined the main street of the colonial section, to try out my newly bought game and to rest my tired feet. The cool breeze soothed my scorched my neck as I contemplated my next move.