Abstract This paper analyzes the role Foreign Direct Investment has played within the Indian economy. It traces FDI's history in India as well as the socio-economic and geo-political factors which have led to the inflow of FDI. The paper studies the success and failures within industry- specific areas such as power, telecom, IT and BPO. It also deals with India's struggle through policies of protectionism and repudiation to large scale reforms, divestments and privatization. The research is somewhat critical of the use of FDI but looks at all aspects of FDI and its role within the Indian economy.
Table of Contents
Opening the Indian Economy and the Magnitude of FDI
Introduction
FDI and Comments on Governmental Policy Formulation for Promotion of MNE? s
Imperative of Attracting Export-oriented FDI through MNE? s
A Professional Approach to Promotion
The Socio-Economic and Geo-political Factors Leading to Liberalization- based Policies in India
Evolution of Government Policy in Conjunction with Promotion of FDI through MNE?s
Evolution of Government policy: 1948 ? 1967
The Restrictive Phase: 1968-1979
The Opening up of the 1980?s
Structural Adjustment and Globalization: 1990s
Government Policy and Trends in Foreign Investments and Collaboration
Inflows of FDI and an Analysis of Historic Comparative Advantages as Opposed to Knowledge Based Growth
FDI and Pitfalls Related to Inflow
Historic Comparative Advantages
Lost Ideologies in Globalized Paradise
Case Power Sector
Knowledge Based Growth
Case: Telecom Scandal
The IT and BPO sectors
Case Examples
Western Demand and Dupplies Curves
Comments
Indian Liberalization Targets vs. FDI policy Inflows
Foreign Investment Policy
Magnitude of FDI Inflows
Steps India Can Take to Accelerate Increases in FDI Inflows
National Promotion as Brand for Inflow of FDI
Focus on Tertiary Service Sector
Rural Cottage and Agro-based Businesses for Large-scale, Economic Production for Exports
Bureacracy Reduce
Privitzation Acceleration
Investment in Domestic Infrastructure and Projects
Conclusion and Recommendations
Limitations and Future Research
Conclusions from Investigation
Recommendations
Personal Review
From the Paper "Various other policies have been laid out since and have been put into effect as an attempt on the part of the Indian government to firmly safeguard MNE 's business interests and promote a competitive environment. Since 1991, India has received a number of delegations of potential foreign investors and the most recent one which is worth mentioning is Mr Bill Clinton's delegation to India which has literally brought about huge FII (Foreign Institutional Investments) upto an estimated $4 dollars within a week. The US has also provided MNE 's to borrow from the EXIM and World banks to further invest in India upto the tune of $750 Million. An indicator of the changed Indian environment is the fact that two giants that left the country following restrictions placed on them under FERA, IBM and Coca-Cola, have both recently come back. IBM has set up a joint venture with the TATA group of companies and Coca-Cola has taken over the local soft drink maker manufacturer, Parle."
Abstract In late 1999, following a year that was characterized by a number of damaging product introduction delays, the residual effects of an earlier recall of 60,000 phones, reduced sales and increasing levels of intense competition in the marketplace, Sony closed down its cellphone production operation in North America. The paper shows that in order to remain competitive, Sony took a realistic look at the market, divested itself of operations in an area where it could no longer profitably compete, took advantage of outsourcing some of its manufacturing needs by means of the vehicle of utilizing outside contract manufacturing operations and further reduced costs associated with development by entering into a joint development agreement with Ericsson of Sweden. The paper looks at Sony's move in the context of the cellphone market in the United States, provides a product description and uses the Porter Five Forces Model to explain the forces that shape competition within an industry.
From the Paper "The Japanese digital cellular telephone market clearly foretells what cell phones, service and technology will look like in the future?worldwide. Whereas a few short years ago, when a cellular telephone rang in Japan, people would have to speak very loudly in order to be properly understood. Such is no longer the case. Today, instead of speaking on the phones, users are reading email, checking calendars, reviewing weather forecasts (and baseball scores), playing games, downloading text and sending messages. With the music-related innovation detailed above, users will soon be able to also have the strains of their favorite music with them as well. In essence, at least as far as Japan is concerned, this new phone has become the equivalent of the personal computer with wireless connectivity but with much more stringent design constraints (Yoshida, 2000)."
Tags: QUALCOMM, CDMA, Texas, Instruments, PlayStation
Abstract This paper examines how John Rawls reworks his theses contained in his previous works with "Justice as Fairness: A Restatement". It looks at how Rawls' political philosophy is a modern formulation, presupposing a democratic foundation, which seeks to define justice as a purely political concept and how he attempts to divest the concept of justice as fairness from its moral underpinnings. It analyzes how Rawls reformulates the basic theories contained within his former works in order to distinguish the political from the moral or philosophical spheres.
From the Paper "Among Rawls? fundamental ideas is the concept of the basic structure upon which a democratic society is based. The basic structure is a cooperative, collective underpinning of a democratic society. As such, it is informed and rational, applicable to all citizens. Citizens of a just society are both free and equal, not judged on the basis of their gender, ethnicity, race, history, or economic class. The key to a fair, just, cooperative society is basically a social contract. This contract, like any other contract, is a mutual agreement between parties. Its aim is the common good, regardless of any differences or dissention between parties. Because pluralism is an inescapable and welcome facet of a democratic society, disagreement and dissention are inevitable."
Abstract The case of PepsiCo's investment in Burma represents a particularly profitable subject for ethical case analysis given that the process which led to the resolution of the problem was not clear and orderly, but was rather one of fits and starts, with very human hesitations and compromises, before a final outcome was agreed upon. The moral issue facing PepsiCo was whether or not to divest its interests in Burma. PepsiCo had three alternative actions: to do nothing and retain its interests in Burma; to publicly sell its interests while covertly maintaining a financial interest in Burma; to completely sell its interests in Burma. PepsiCo attempted to take all three routes.
Abstract It concludes that the restructuring program launched in 1998 was a necessary step in the right direction. The company has committed to divesting its interests in non-core areas, implementing a share repurchase plan, and restructuring its organization in its key operating areas. This has given the company a new focus that improves its financial position and allows it to concentrate its efforts on marketing a more manageable array of products. In time, the company will enjoy increasing returns to scale and live up to its position as the market leader in the industries it operates in. This paper includes an appendix.
Abstract Discusses the history of the company and Cyrus McCormick's 1831 patent on a reaper, his marketing acumen, and ensuing mergers and acquisitions.
From the Paper "When International Harvester divested its agricultural operations in the mid-1980s, some analysts considered it the end of a well-known and-at one time-highly successful American company. International Harvester was perhaps best-known for ..."
Abstract This paper examines how all developed economies have known periods of a tendency toward mergers, acquisitions, or even divestments and how one very important factor that affects such tendencies is the economy's buoyancy. Through a literature review, it looks at how the fact that these activities rise and fall periodically has brought up heated discussions among politicians, managers, academics, and regulators regarding the advantages and disadvantages of such actions, as well as a debate on the ethical issues at hand.
From the Paper "Successful acquisitions intend, before anything else, to create value. However, there is a surprising low rate of success with regard to acquisitions, as some authors have observed. (Lawrence, 2002; Marks and Mirvis, 1965). Transfer of capabilities and collaboration between people form both organizations are paramount in order to achieve the desired results and to take full advantage of the offered opportunities ? which translates into value creation. Otherwise, in spite of the fact that a particular acquisition may seem very attractive, if there is not any will and ability of managers from both organizations to put together their efforts towards a better future, the final result may be disastrous. The key to integration is to have all people actively involved, without putting the strategic objective at risk."
Abstract This paper explains that liberation theology as developed by Father Gustavo Gutierrez was shaped by political events specific to Peru and to Latin America's position in the world economy especially the economic crises of the 1960s, which nurtured revolutionary movements in Peru and elsewhere: Social change required unconventional measures as evidenced in grassroot churches and organizations such as the CEB (Comunidades Eclesiales de Base or Base Christian Communities). The author points out that the ecclesiology proposed by Gutierrez is closely associated with his reinterpretation of salvation as a single yet complex process of historical liberation, which encompasses the whole person and all persons, proclaiming a God whose love frees human beings to love. The paper states that liberation theology is moving toward divesting itself from dependence on the Western philosophical tradition by recovering local traditions, values and visions and by using the languages, which emerge from the interaction of the theologians with the poor, who are reclaiming their personhood. Many quotations.
Table of Contents
Introduction/Historical Background
The Ecclesiology of Liberation Theology
The Epistemology of Liberation Theology
Socio-analytic Mediation
Dialogue with the Social Sciences
Introspection and Inter-religious Dialogue
The Hermeneutical Circle
The Hermeneutical Mediation
Practical Mediation
Praxis as Criterion of Truth
Criticisms of Liberation Theology
Alistair Kee
The Vatican
Rosemary Reuther
Michael Novak
Conclusion
From the Paper "There have been objections to the liberation theologian's social commitment or disinterested nature of science and knowledge. Critics argue that science is no more revolutionary or reactionary than it is religious or atheistic. In countering this criticism, liberation theologians pointed out that, insofar as it is a science, from an epistemological point of view, theology is a disinterested cognition. Insofar as it is a social positivity, or virtue of its factual insertion into the fabric of social interests, theology is not an innocent, neutral, apolitical function but a partisan and interested social instrument. Liberation theologists recognize that there is no straight, logical path from theory to praxis, nor from praxis to theory."
Tags: ecclesiology, epistemology, peru, poor, grassroot
Discusses the U.S. government's response to Verizon Communications, Inc.'s and MCI Inc's intentions to merge into a single telecommunications provider.
Abstract This paper begins with a discussion of the potential monopolistic practices that could arise from a merger between telecommunications providers Verizon Communications Inc and MCI Inc. The paper then examines the U.S. government response to such a merger and why the government is correctly concerned about preventing a monopoly in the telecommunications industry.
From the Paper "When Verizon Communications, Inc. ("Verizon") and MCI, Inc. ("MCI") announced their intentions to merge into a single telecommunications provider, the Federal Communications Commission and the Antitrust Division of the Department of Justice took immediate notice. The government's quick response to such potential threats to competitive markets is perhaps due in part to the history of the telecommunications industry and, in particular, the role of the government in allowing the monopoly to continue for so long. Beginning in 1907, AT&T operated as a legally sanctioned monopoly. AT&T's then-president Theodore Vail argued that due to AT&T's advanced technology, it would be the most efficient provider of telecommunications services and would thus emerge as a natural monopoly. The government was convinced by this argument until 1974, when the United States filed a suit that was settled eight years later and required AT&T to divest itself of the Bell operating companies that provided local phone service."
Abstract The paper describes Diageo Plc. and discusses how it has divested itself of businesses that do not have a synergistic relationship to its core business, such as its holdings of Burger King. The paper explains that in terms of its core business, the company became the world's largest spirits and wine company when it acquired Seagram's, an acquisition that included four California brands and the importation rights for various French wines and champagnes.
From the Paper "The Diageo wine company has had a strong business for some time and began to work to make it stronger through brand rationalization, meaning the company decided to concentrate on its mid-priced wines for about $10 to $15 and to sell off its holdings for higher-priced brands which it had acquired over the years. A reconsideration of this strategy came soon after, including an indication that the company was willing to acquire more land for vineyards if the price was right and if the cost structure fit with its overall company structure. The head of the company is Ray Chadwick, president of Diageo Chateau and Estate Wines, and he sees cost synergy as the main growth driver for the company into the future."
Abstract This paper discusses the ethical issues involved in the United Airlines case by which it has divested itself of its pension plans, as the leadership sought concessions from the unions in order to cut labor costs and so allow the airline to continue operating. It looks at how from the airline point of view, the issue was framed as saving jobs or closing the airline. For employees, though, the issue involved a breach of trust as the airline eliminated the pension system it had maintained.
From the Paper "The recent restructuring of employment agreements by United Airlines raises a number of ethical questions as well as business issues and the possibility of future regulatory issues. United Airlines reached the point of bankruptcy, or at least claimed that it was facing bankruptcy, and to forestall this conclusion of the company, the leadership sought concessions from the unions in order to cut labor costs and so allow the airline to continue operating. From the airline point of view, the issue was framed as saving jobs or closing the airline. For employees, though, the issue involved a breach of trust as the airline eliminated the pension system it had maintained. The issue is not solved by the fact that a federal court allowed this change, and indeed this fact only creates clear in others about what the government will allow an industry to do with funds entrusted to company pension plans across the country."
Abstract This paper discusses labor relations in the airline industry, noting how deregulation changed the nature of those relations and caused the airlines to seek more ways of cutting costs. This paper further discusses how 9-11 added to the costs for the airlines who were then forced to reduce salaries and divest pension plans, creating new tensions that have not yet worked themselves out.
From the Paper "Labor relations for some industries can be quite contentious, while for others accommodations are often made on both sides. The airline industry shows examples of both, and in general labor disputes in the industry show a pattern of change in recent years, with new forces at work and with many new concerns bringing in government action, including concerns about the effect of labor problems on safety in the light of potential terrorist acts. As von Nordenflycht and Kochan (2003) write, "even before the events of September 11, 2001, observers perceived strains in the industry's labor relations system, claiming that contracts were taking longer to negotiate, rank-and-file rejections of tentative agreements were more frequent, and job actions were on the rise."
Abstract This paper discusses the Campbell Soup Company's competitive analysis and whether or not the branded convenience food industry is attractive or unattractive. The purpose of this paper is to determine which lines of business the company should invest in and which lines of business the company should eliminate (i.e. harvest or divest). This paper conducts a SWOT and Five Forces analysis to demonstrate Campbell's core competencies and strengths.
Abstract This paper examines how the treatment of Native Americans by the early settlers and the later colonists of America has been a lesson in sorrow and despair. It attempts to show that not only was the dispossession of Iroquois land immoral and unethical, but in almost every instance illegal by any standards of contract and treaty as well. It also examines how often the Iroquois were represented by parties that were to benefit from their losses or simply not represented at all since the translation of the documents were often misleading or completely non-sequitur to the actual intention of the treaties and contracts involved.
Outline:
Prospectus
Introduction
The Land and the People are One.
The Patroons and Leasehold Estates
The Beginning of the End
The Father of Our Country
Time Marches On
The Last War Dance
The Trail not Taken
The Last of the Iroquois
Conclusion
From the Paper "While there had always been many disputes over the Native American Territories long before then, the Iroquois would find that in 1785 New York and its then Governor, George Clinton, along with a company called The New York Genesee Land Company, would begin a process that would systematically remove them from their lands. First, The New York Genesee Land Company, an independent group of businessman, negotiated a 999-year-lease on the majority of Iroquois lands in New York State for the initial price of $20,000, and an ongoing annual rental fee of $2,000. The State charter had originally assumed full control over the governance of Native American territory which had been reserved to the Iroquois in 1768 by the establishment of a property line, west of which white men were forbidden to settle. The sale of any of the lands of the Six nations was reserved to judgment and prevue of the State alone. "
Abstract In this article, the writer analyses Unilever's corporate strategy and main initiatives in order to see their appropriateness in the current globalisation environment. The writer examines the relevance of Unilever's different key strategic perspectives. This report also provides some key factors and suggestions that Unilever could examine so that the company remains a global leader in the food and home and personal care (HPC) products. The writer concludes that from a general perspective, it can be said that Unilever is and will remain a powerful global company for years, if its managers keep on implementing such a strong corporate strategy.
Table of Contents:
Summary
Introduction
Part 1 - Unilever's Corporate Strategy
Unilever Key Strategic Perspectives
Growth Strategy
Restructuring Strategy
Divestment and Retrenchment Strategy
Branding Strategy
Innovation Strategy
Strategy Analysis
Five Forces Model of Competition
SWOT Analysis
Part 2 - Unilever's Strategic Initiatives
Acquisition of Ben and Jerry's (B&J's)
Acquisition of Bestfoods
Part 3 - Development OF Unilever's Strategy
Unilever's Recent Initiatives
Recommendations for fFuture Strategic Direction
References
Appendix A Unilever's Strategies
Appendix B Unilever Portfolio Perspective
Appendix C Balanced Scorecard
Appendix D Unilever's Path to Growth Strategy
From the Paper "One of the options to expand is the mergers and acquisitions (M&A). The benefits are that products are ready made and an organisation enters an unknown market thanks to another which already has the knowledge of the environment and the know-how. Competition is neutralised, a market is penetrated, investments are lower and synergy are created such as economies of scale. A rapid geographical, products range and financial expansion is gained. Unilever's acquisitions are detailed further. There is a paradox between cooperation and competition. A company decides to cooperate to eliminate an existing competitor but takes the risks of creating a stronger competitor by cooperating with it because mutual knowledge and strengths are shared.
The aim is to enhance the profitability and quality of the business. In support of this, developments may serve to introduce the organisation into new geographical areas, to increase the sectorial position."
