Product extension of procter and gamble

Product extension of procter and gamble The Procter Gamble Company (PG) is one of the worlds largest consumer goods companies. It markets more than 300 brands in the beauty, health, fabric, home, baby, family, and personal care product categories. The company operates in the Americas, Europe and Asia. It is headquartered in Cincinnati, Ohio, and employs about 135,000 people. CORPORATE OBJECTIVES The objective of Procter Gamble is that They will provide branded products and services of superior quality and value that improve the lives of the worlds consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper. (http://www.uk.pg.com/company/aboutPG/purposeValuesPrinciples.html) CORPORATE STRATEGY Procter Gamble (PG), one of the worlds largest consumer goods companies is also a pioneer in the use of mass media. The company has used newspaper advertisements, radio and soap operas to advertise its popular brands like Crest, Pampers, Pantene and Folgers. During 1990-2000, however,  its rate of growth took a plunge. When AG Lafley took over as CEO in 2000, he gave PG a complete makeover with the focus on innovation and advertising. Since 2000, PG has been increasingly embracing targeted, viral and on-line marketing. (http://www.uk.pg.com/company/aboutPG/purposeValuesPrinciples.html) PROPOSED PRODUCT olayLogo87_Jul06.jpg Evolution Olay is a worldwide leader in skin care and have been trusted by women for fifty years. Graham Wulff, an innovative and entrepreneurial South African chemist developed the original formula at the beginning of the 1950s. Olay has eight global product lines offering a multiple of product. Product such as; Olay professional pro-X, Olay Definity, Olay Regenerist, Olay Total effect, Olay complete, Olay hydrate cleanse, Olay clarity, Olay body lotion, Olay touch of sun and Olay body cleansing (http://www.docstoc.com/docs/14719894/Oil-Of-Olay-Products). Skin care is evolving faster than ever with independent clinical trial and new standards in natural and organic cosmetics. Olay evolution will be a combination of Olay total effects (7 seven powerful anti-ageing in one) and Olay Definity (fight wrinkles, brown spot and discolouration). Many consumers want products that offer more than one benefit. So this product is expected to moisturize, fight free radicals and give the skin a more youthful appearance. This product would offer the costumer an ideal combination of the world most powerful skin care solution. Anti-aging is the fastest-growing skin segment, standing at $567.6 million, now representing the biggest category in skin care, surpassing facial cleansers which stand at $559.2 million. (http://www.allbusiness.com/population-demographics/demographic-groups/5517853-1.html) product-landing-definity_v6.jpg product-landing-total-effects.jpg Women are very particular when dealing with their face. They need to be convinced the product will deliver all the promised benefits. Women are willing to try new things and spend more money to look better and younger. Skin care attracts customers from all income level as most women like to take care of their appearance. The increase number of women working equates women with more money to spend and skin care is one of the favourite avenues for their spending. Based on Procter Gamble F4Q10 (Qtr End 06/30/2010) Earnings Call Transcript, Female Skin Care grew volume double digits with positive share trends. In the U.S., Olay all-outlet value share of the Facial Moisturizer segment was up almost two points behind the continued strength of the Olay Pro-X line and the Olay Regenerist Roller ball Eye Treatment innovation. Olay also had strong results in developing markets, more than doubling shipments in India, Saudi Arabia and the Philippines. Organic sales increased 5%, driven by 8% organic volume growth. (http://seekingalpha.com/article/218380-procter-gamble-f4q10-qtr-end-06-30-2010-earnings-call-transcript) Rate of Global skin care market 2002 and 2007 Country 2002 ( £M) 2009 ( £M) US 6,752.2 8,059.2 FRANCE 2,391.1 4,368.0 GERMANY 1,975.1 3,239.3 ITALY 1,440.0 2,340.4 SPAIN 956.4 1,897.9 UK 1,612.7 2,937.6 Source: Euro monitor international Below are the analyses of the business environment to back up the proposal. ANALYSIS OF BUSINESS ENVIRONMENT Every Business operates within an environment, these environments directly and indirectly affects the way those businesses function. Competition in the skin care industry tends to be more intense and there are many changes that can be regarded as threat and opportunity that it is important for managers to cope with. MACRO Political The political environment Relates to the pressures and opportunities brought by changes of the government and their views toward the skin care industry. Each government always have a mandate to regulate the use on non organic ingredients in most skin care product. Economic This Refers to economic factors and structures and such variables like the stock exchange, interest and inflation rates, the nations economic policies and performance, exchange rates, etc. Although PG is based in the US, it earns revenues, pay expenses, own assets and incur liabilities in countries using currencies other than the US dollar. As a result, increases or decreases in the value of the US dollar against other major currencies will affect the companys net operating revenues, operating income and the value of balance sheet items denominated in foreign currencies. Social Middle-aged women are very interested in skin care items that help them retain a more youthful appearance and complexion. Observing social factors helps organisations maintain their reputation among stakeholders. Technological Changes in technology can affect a company competitive position. Industries merge; new strategic groups emerge; currents products improve and the cost of production gets reduced by process innovation. Because the skin care industry is very competitive, the company necessitate taking advantage of the latest technology and revolutionary substances to create new product in order to maintain customers interest and loyalty. Environmental With global warming and carbon foot prints being big concerns, governments and scientists are encouraging companies and individuals to be more environmentally aware. PGs policy is to: Ensure its products, packaging and operations are safe for their employees, consumers and the environment. Reduce or prevent the environmental impact of products and packaging in their design, manufacture, distribution, use and disposal whenever possible. They support the sustainable use of resources and actively encourage reuse, recycling and composting. MICRO Buyer Power;  Consumer products companies face weak buyer power because customers are disjointed and have little influence on price or product. But considering the buyers of consumer products to be retailers rather than individuals, then these firms face very strong buyer power. One good example is the business relationship between wall-mart and PG (see swot analysis). Supplier Power; the company could face some amount of supplier power simply because of the costs incurred when switching suppliers. Notwithstanding, suppliers that do large amount of business with the company also are somewhat obliged to their customers; nonetheless, bargaining power for both the firms and their suppliers is probably limited. Threat of New Entrants;  Given the amount of capital investment needed to enter the skin care industry, the assumption is that threat of new entrants will be fairly low. Threat of Substitutes;  Within the skin care industry, brands thrive in helping to build a competitive advantage, but even the pricing power of brands can be scoured with substitutes. Threats to this product may arise from other anti-aging products such as; Avotone, Revitol, Ceramide C etc. Degree of Rivalry; Skin care industry is a very competitive market, taking advantage of the latest technology and revolutionary substances to create new product in order to maintain customers interest and loyalty will be very important. In doing so it will increase the companys competitive advantage over other top brands like Avon and Nivea Visage. INTERNAL The internal environment constitutes variables and forces within the control of the organisation. These variables are; conditions, entities,  events, and  factors  within an organization which  influence  its  activities  and  choices, its philosophy, particularly the  behaviour of the  employees. Other variables include; the  organisation mission statement,  leadership style, and its  culture. SWOT Analysis; this is a planning method use to evaluate the strength, weaknesses, opportunities and treat to a business. It involves specifying objectives of a business at the same time identifying the internal and external elements that will affect the business both positive and negative in the race to attain its stated objectives. Strengths Weaknesses Leading market position geared on a strong brand portfolio. Significant RD and market investment. Robust cash productivity Increase instances of product recall. Excessive dependant on Wal-mart. High product prices translated into sales volume decline and market share loss. Opportunities Threats Future growth plans- Increase concentration on its core attractive businesses and enhancing its customer base. Increase investment in manufacturing capacity in developing countries. Acquisitions to expand portfolio Counterfeit goods. Changing global retail scenario and rise of private labels. Commodity cost and currency exchange rate. Rising cost of energy prices Economic slowdown in US and Euro zone. (www.datamonitor.com) STRENGTHS Leading market position garnered on a strong brand portfolio With revenues of $79,029 million, PG is the worlds largest consumer products manufacturer, with its products reaching 4 billion people worldwide. PG is the 20th largest company in sales and the 9th largest company in profit among the Fortune 500 companies. The companys market capitalization in 2009 was roughly $150 billion, making it one of the 10 most valuable companies in the US. PG holds leading global market shares in a variety of categories, including baby care (33%), blades and razors (70%), feminine protection (37%), and fabric care (33%). The companys leadership position is built on its strong brand portfolio. Strong brand portfolio enables the company to achieve economies of scale in distribution and retain a strong bargaining position with retailers. Leading market position provides PG with significant competitive advantage as well as stabilizes the companys financial growth Significant RD and market investment. Being a consumer products company, PG relies heavily on innovation and continued marketing investments in order to establish a significant competitive advantage. As a result, the company has made significant investments in RD and marketing. Over the last decade, PG has invested more than $2 billion in consumer and market research (nearly twice that of its closest competitor, Unilever; and equal to the combined total of its other major competitors; Avon, Clorox Company, Colgate-Palmolive Company, Energizer Holdings, Henkel, Kimberly-Clark, LOreal, and Reckitt Benckiser). Virtually, all the organic sales growth delivered by PG in the past nine years has come from new brands and new or improved product innovation. PG also involves external innovation partners to boost its internal innovative capability, an approach it calls Connect and Develop. Currently, more than half of all product innovation coming from PG includes at least one major component from an external partner. PGs strong RD capabilities and a marketing-driven understanding of consumer needs are backed by significant marketing investments. The company invests more than $7 billion in advertising annually, consistently making PG one of the worlds largest advertisers. Strong focus on research and development allows PG to renew its product line at regular intervals, which boosts customer loyalty and revenue growth. Significant marketing investments to support its brands and a broad product portfolio help PG to remain at forefront in a competitive market. Robust cash productivity PGs cash productivity: the percentage of earnings converted into cash has averaged over 100% since 2001, consistently among the very best in the industry. This is primarily due to PGs strong focus on productivity, working-capital management and cost reduction. Furthermore, PG is equally rigorous about managing costs. The company has reduced overhead costs as a percentage of sales by more than 300 basis points since 2001. The cash productivity allows PG to maintain the companys excellent credit rating, to pay strong dividends, and to have the flexibility to invest in the business organically or through mergers and acquisitions. Therefore, robust cash productivity ensures that PG has the flexibility and the resources to invest in growth even in the most challenging environments. WEAKNESSES PG has been registering increasing instance of product recalls. One case in point is in November 2009, the company voluntarily recalled three lots of its Vicks Sinex nasal spray in the US, Germany and the UK. The recall was a precautionary step after finding the bacteria B. cepacia in a small amount of product made at its plant in Gross Gerau, Germany. In March 2010, PG voluntarily recalled its Pringles Restaurant Cravers Cheeseburger potato crisps and Pringles Family Faves Taco Night potato crisps in response to a recommendation from the Food Drug Administration (FDA) to the food industry to protect consumers from potential Salmonella exposure. Most recently in June 2010, PG voluntarily recalled a small percentage of 1-liter bottles of Scope Original Mint and Scope Peppermint mouthwash with malfunctioning child-resistant caps in the US and Canada. Recurrent product recalls could affect the brand image of the company, which would lead to low customer loyalty and brand equity. Excessive dependent on Wal-Mart PG is heavily dependent on Wal-Mart Stores (Wal-Mart) and its affiliates for generating major part of its revenue. Sales to Wal-Mart and its affiliates represented approximately 15% of its total revenue since 2006. High dependence upon a Wal-Mart reduces the bargaining power of the company. Also, Wal-Mart could use its bargaining power to impose unfavourable terms on the company. Any decrease in revenue from Wal-Mart could have a negative impact on the companys businesses. Hence, the loss of this customer will lead to a sharp decline in PGs revenues and also a loss of its market share. OPPRTUNITIES Future growth plans In order to grow in a highly competitive environment, PG is pursuing a clearly drafted strategy with focus on two areas: increasing concentration on its core attractive businesses and enhancing its customer base. The company is sharply focusing on its core attractive businesses (the beauty and health market segments and several household care categories) as these are fast-growing businesses. For instance, the global market for personal care products has annual sales of over $39.5 billion and is growing at a rate of around 5% annually. PG intends to increase its customer base by acquiring under served and unserved consumers. In line with this, the company is targeting developing markets; extending its distribution systems; and expanding its brand and product portfolio. Developing and emerging economies are expected to account for 90% of the worlds population by 2010, and this is expected to drive demand for fast moving consumer goods. Increased investment in manufacturing capacity in developing countries PG is planning the biggest increase in its manufacturing capacity in order to expand into categories and countries where it doesnt have a brand presence. The company is investing 4% of sales in capital spending, including funding for new manufacturing capacity to support future growth. Over the next five years, PG plans to add 20 new manufacturing facilities. Almost all of these facilities are in developing markets, and almost all will be multi-product category facilities. By focusing on developing markets, the company would reduce the cost of serving these markets while also being closer to regions with the greatest long term growth potential. Acquisitions to expand portfolio PG has made significant acquisitions in the recent past. For instance, in June 2009, the company acquired the Zirh skincare brand. Zirh is a leading super premium, male grooming brand available in high-end department stores, specialty outlets and online. Later in May 2010, PG entered into an agreement to acquire Natura Pet Products, a privately-held pet food business. Most recently, in July 2010, the company concluded its purchase of the Ambi Pur Brand from Sara Lee Corporation. Ambi Pur is a leading global air care brand with presence in 80 countries, and also has several toilet care products, with strong presence in Western Europe and Asia. These kinds of acquisitions will strengthen PGs presence across a range of categories and in turn augment its top line and bottom-line. THREATS Changing global retail scenario and rise of private labels PGs products are sold in a highly competitive global marketplace which is experiencing an increased trade concentration and the growing presence of large format retailers and discounters. With the growing trend toward retail trade consolidation, it is increasingly dependent on key retailers. Some of these retailers have a greater bargaining strength than PG. They may use this leverage to demand higher trade discounts, allowances or slotting fees, which could lead to reduced sales or profitability. Commodity cost and currency exchange rate instability places tremendous pressure on PGs business. Not to mention the unexpected and dramatic devaluations of currencies in developing or emerging markets reduce profits. Counterfeit goods Trade of counterfeits and pass-offs products is negatively affecting the growth of FMCG companies like PG. The top two brands within any category be it cosmetics, detergents, or soaps are effected the most by counterfeit. It is estimated that the loss due to counterfeit products convert into around  £6 billion ($8.5 billion). Furthermore, with the advent of digital channels there has been a surge in the sale of counterfeit products and online sales of these products increased by 9% in 2009. Besides revenue losses, counterfeits and pass-offs also affect the companys brand as they are unsafe. (Swot analysis Source: www.datamonitor.com ) The best strategies accomplish an organisation mission by exploiting an organisation opportunity and strength, while neutralizing its treat and avoiding its weakness. Ansoff matrix Ansoff matrix highlight four possible market strategy for the propose product. ansoff_matrix-124013-1.jpeg (http://www.brothersoft.com/ansoff-matrix-124013.html). Product development: as this is a new product in the range, much emphasis will be to offer the product to the existing customer base. Using the competitive advantages and brand image of previous products to lunch the propose product. With the companys focus on advertising, (worlds largest advertisers) it can use the advertising power to push the product to recognition. Sixty percent (60%) of the strategy will be on product development. Diversification: One of the opportunities available to the company is launching into new markets and developing economies. Forty percent (40%) of the strategy will be to launch the propose product in an entirely new market. Market Penetration: this occurs when the company sells its existing product in its existing market, perhaps through greater promotional efforts. As this is a new product this strategy might be considered in the future. Market Development: this occurs when the company tries to sell it existing products in new and emerging markets. This strategy as well might be for future considerations.

Groundwork of the metaphysics of morals. Compare and Contrast Essay

The theories put forward, by Kant and Mill deal with the moral qualities of choices or actions. Although they are very different, none of the two theories shows concern in the virtue ethics on what really constitutes a good human being. However, Kant’s theory is much deontological. This means that it locates the moral worth associated with an action within the action itself. Therefore, the main concern is not in the consequences associated with the specific action. On a more specific note, Kant’s point of view is that it is possible to have one duty or rule, which can be categorized/ characterized as being the categorical imperative. He arrived at three different formulations pertaining to this imperative (Kant & Gregory, 1998). The most fundamental formulation is that if it is impossible for all human beings to commit the same set or sets of actions, then concerned action is immoral. This means that if one is a liar, he is incapable of willing that every person lie because in this case the meaning of truth may end up becoming incomprehensible. As a result, any advantage, which obtained by use of lies, can end up getting lost. The second imperative is a different way of underlining the golden rule. It states that if one is unable to will (desire) that a different person commit the same action on one’s person, then the actual committing of the action or deciding mentally to do the same is an immoral endeavor. On the other hand, we can take Mill as being more of a consequentialist. According to Mill, the outcomes determine the goodness of any action (Kant & Gregory, 1998). Kant is of the opinion that the good action is one, which is in line with our duty. This becomes known depending on the fact, which it apportions with the categorical imperative Mill’s beliefs make him a utilitarian. In his theory, goodness is located according to the happiness which it gives rise to. It is worth noting, however, that both philosophers are very passionately interested in personal liberty for all the concerned individuals. Mill’s utilitarianism does not involve neither with the means nor with intentions. It is entirely with the results. Mill’s opinion was that all events’ outcomes could be measured by use of units, which he referred to as â€Å"utils.† The units can be used to determine the existent to which an action was utilitarian. Mill argued that the higher the number of â€Å"utils† associated with an action portrayed how good an action was. Critics have pointed out that utilitarianism is not concerned about coming with rules to set up some form of a â€Å"straw man.† On the part of Mill (1998), he argues that utilitarianism is some form of a crude caricature act. This is the version, which the philosophers appear to be acquainted with. Further, Daniel Dennett has argued that it is not possible to do the calculations, as required by the utilitarianism theory simply because the incidents do not sum up as a precise value in terms of utility. Mill’s utilitarianism does not involve neither with the means nor with intentions. It is entirely with the results. He wishes to sideline himself from Kant by expressing that actions can lead to an outcome, but taking no credibility of the actions. On the other hand, Kant takes responsibility of the action. Eventually, the two theories show similar concern in the virtue ethics on what really constitutes a good human being. References Kant, I., & Gregory, M. J. (1998). Groundwork of the metaphysics of morals. Cambridge, U.K.: Cambridge University Press. Mill, J. S., & Crisp, R. (1998). Utilitarianism. Oxford: Oxford University Press. Source document

Vacant Chapter 2 Window

I'm staring, which is something I don't make a habit of. Eye contact typically invites people into conversations, and I'm not a fan of chit-chat. I stand in the doorway with an awkward pause, like I'm unfamiliar with waving as an appropriate means to say hello. My pause before I answer her is a pace too long, and the situation is somewhat uncomfortable as I stand there waiting for her to offer up more information. More importantly, I want to know why she's knocking on my door, and I hope it's not so we can get to know each other. Since several more seconds pass without further exchange, I finally cave in and offer myself up. â€Å"Hey, I'm Ethan,† I say wanting to keep it simple. I don't want to get sucked into a conversation with her, but I don't want to be rude, either. She can tell I'm a little put out with her presence, so she gets right to the point. The last thing I need is an overly perky neighbor who thinks we're â€Å"pals.† â€Å"Sorry, I was just having trouble getting a window open. It's going to be a hot one, you know, and I don't have the electricity turned on yet. They want some freaking deposit since I don't have a credit history. It's like, ‘Hello, I'm living in a crappy house, in a crappy neighborhood. If I had good credit, I wouldn't be living here.' Anyway, I want to get the window open to get air moving through, and I think it's painted shut. I don't want to be all ‘damsel in distress,' but I can't pry the darn thing open†¦Ã¢â‚¬  My thoughts trail off and I realize this is the most anyone has said to me in years. Perky girl is still talking, but I'm continuously distracted by her mere presence and the fact that her chest spills over the top of her tank. She's pretty cute, but I try not to dwell on her appearance as lustful thoughts won't lead anywhere good. â€Å"So you think you could come help me?† I know I missed some information in there, but I'm not going to ask for clarification or for her to repeat it. â€Å"Sure, no problem.† I follow behind her, but at a safe distance. I don't want the offer of my help and me being polite to some girl mistaken for flirting. It sounds conceited, but it's happened before. It's better not to give them any sense of false hope. I mind my own business and live my life; today will be no exception. She shows me the window in question, and sure enough, it's painted shut. I roll my eyes at the incredibly inept and lazy maintenance people for doing a half-assed paint job. â€Å"Um, I'll be right back. I'll have to get something to cut this open.† I turn to head out her front door, but she stops me. â€Å"Oh, wait. Like a box cutter? I have one of those. I think the maintenance people left it here by mistake.† She rummages in a kitchen drawer then presents me with a paint covered box knife. As I work the window, she asks me several questions related to the area. My answers are succinct since I'm not really receptive to the Getting-to-Know-You game. The â€Å"Twenty Questions† moderator doesn't get the hint though, and keeps on with the game. â€Å"So, how long have you lived here?† â€Å"A few years.† â€Å"Do you know many of the neighbors?† â€Å"I don't talk to the neighbors much, so I don't know anything about them.† I'm hopeful my continued shortness helps her get the hint that I'm not interested in a conversation. â€Å"Wow, you're pretty quiet, huh?† â€Å"Yeah.† â€Å"So, what do you do for fun?† I'm caught off guard by her question. I can't recall when I've had fun, so I'm not sure how to respond. I stand up straight, rolling my shoulders back and craning my neck in a stretch, attempting to buy a little time for my answer. While I don't particularly care what this girl thinks of me, I don't want to come off like a total loser, either. â€Å"Look, I'm sorry,† she says. â€Å"I didn't mean to pry. I've bothered you enough this morning. You've been so nice, helping me out and all. I'm gonna†¦Ã¢â‚¬  she trails off and I go back to working the window, popping it open a few seconds later. â€Å"I'll see you around,† I tell her, raising the window to its fully open state. She quickly dismisses me with another small wave, and I leave to go back to my own little corner of the earth. Despite the fact that I've been in her unit for less than five minutes, it doesn't escape my notice that there's no furniture or a TV, just a mattress on the floor of her bedroom. Maybe the moving truck with her stuff hasn't arrived yet, I think to myself. In the back of my mind, I know there isn't more stuff coming. People like us don't have stuff or the need for moving trucks. I'm lying in bed, thinking about the stupid question she asked me. â€Å"What do you do for fun?† How could such a simple question send me into a tailspin? That's when I hear a whimper. It's been a while since anyone's lived next door, and the last guy who lived there was never home, so I'm used to quiet. The walls are thin in apartments like this, cheaply built and economically priced rental units. Much expense was spared in their construction. I'm certain we share no more than a few two-by-fours and two slabs of sheetrock as the wall. It doesn't provide any more privacy than that found between bedrooms in the same home instead of two separate residences. I turn my head, thinking it will improve my ability to discern what I think I'm hearing. It doesn't, but then I hear muted sobbing. That can only mean one thing – new neighbor girl is crying. I turn away, wanting the sound to stop; I don't want to be involved. The next morning shows no signs of life from my neighbor, but that's no surprise. The noise coming from her side of the duplex kept me up well into the night, so I'm sure she's sleeping in. I, on the other hand, take part in my free exercise routine – running. I do this early in the morning for two reasons: one, I avoid those who may feel the need to hassle me for money. They are not early risers, as hassling is a mid-morning and post-lunch activity. Two, it gets hot as fuck here in the summer, and running in 105 degree temperatures is just stupid. I crest the hill on my street, nearly completing my three miles, and see her setting out the trash. New girl is looking around nervously, probably in hopes of going undetected since she's barely dressed in her tiny shorts and tank top. It's not leaving a whole hell of a lot to the imagination, and my mind wanders as I catch a glimpse at her ass. I see her throw a couple of empty boxes to the curb then turn and rush inside. I'm close enough that I can see the blackened bottoms of her feet as she scurries inside, then wonder how often she goes without shoes. A few days pass before I see her again as I return from my run. This time she's leaving a few plastic grocery sacks out for the trash. Once again, she's dressed in the same tank and shorts she wore on Sunday. After my cool down stretch, I make my way inside and gather my things to shower. Only then does it occur to me that I haven't heard the water turn on in neighbor girl's unit at any point since she moved in, not even a toilet flush. The only sound I hear from her side of the wall is the crying each night. I recall her statement about not having electricity. I'm guessing she doesn't have the water turned on yet, either. A knot forms in my stomach. Don't get involved. Keep things simple. Take care of yourself! I can't help it and walk out my door, knocking on hers seconds later. It takes a moment before I realize I'm only wearing my shorts, but it's too late. She opens the door a crack and eyes me. â€Å"Ethan,† she greets, and then opens the door a little wider, looking around cautiously. â€Å"Emily, right?† â€Å"Yeah. What's up?† She's smiling again, just like when we met. â€Å"I noticed that you, um†¦don't have electricity yet, and you don't have water either, huh?† She bites the inside of her cheek nervously. â€Å"No.† Her reply is so small, just like she is, and I can tell she's embarrassed. â€Å"Come on,† I say, motioning for her to follow me. â€Å"You can shower and wash your clothes at my place. I pay a flat fee for the water, so you using it won't cost me any more money.† Don't get involved. Keep things simple. Take care of yourself! It's too late, though. I'm already involved. It's no longer simple, and for the first time ever, I'm offering to care for someone other than myself.

Economic Overview of Indonesia - 3816 Words

Executive Summary Executive Summary This paper examines the economic environment of doing business in Indonesia. It takes into account several dimensions such as political, legal, economics, social and technology factors. However, economics and political factors are covered in depth as they have a greater impact on establishing advantages and challenges when a firm might decide to set up a business in Indonesia. The results show that not only legal origins have an impact on corporate finance, ownership and structure, but also politics. The poor quality of the judiciary and legal system and the bureaucracy is much more a legacy of the Soeharto government than of the Dutch colonial system (and French civil law). From the analysis of†¦show more content†¦In order to understand the causes of these fluctuations and its recent rapid increase, it is crucial to look at the different indicators that have caused the aforementioned fluctuations. Business Environment In 2004, Indonesia overall score dramatically decreased. It was mainly due to a decrease of its monetary and investment freedom indicators (see Exhibit 4 and 5 relatively). Whereas its rapidly increase from 2005, it was mainly due to an increase of its trade (see Exhibit 6) and again monetary freedom indicators. Between 2002 and 2004, the monetary freedom indictors decreased as a result of a number of factors, including a loss of policy credibility, currency weakness, deteriorating terms of trade and a reduction in fuel price subsidies. In 2004 the annual inflation reached 18.14%, Inflation became the principal threat to economic stability; the government intervened reforming the monetary policy. (see Exhibit 7) As a result of this action, the capital of the banking system become more adequate and liquidity indicators improved over the years. The quality of loan portfolios has also been strengthened. State-owned banks have a large presence in the sector and the non bank sector is relatively small. Interest rates have been declined and this contributed to increase lending. Rapid increase in credit expansion compared to funding growth is aShow MoreRelatedGlobal Economic Expansion Of Indonesia1536 Words   |  7 PagesIntroduction Indonesia is one of the largest and most varied archipelagos on Earth that sit between Asia and Australia, and share borders with Papa New Guinea, East Timor, and Malaysia. With continuous economic, democratic, and political growth, Indonesia’s abundance of natural resources and location in the heart of Asia’s trade routes can potentially put its region in the forefront to becoming a region that will power global economic expansion in the future. Indonesia’s first President, SukarnoRead MoreHistory Of Indonesias First President1464 Words   |  6 Pagesthe Army’s Strategic Reserves, General Suharto began to take the reins of power in his own hand. 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