Proposal H And M Relationship Marketing Marketing Essay

Proposal H And M Relationship Marketing Marketing Essay Introduction A market entry strategy maps out how to sell, deliver and distribute HMs products in another country such as India. When products and services are exported to another country, the strategy will define ways of obtaining contracts and delivering them in that country. If HM has decided to conquer the international market in India, it is opened to many choices. These options may include the cost, risk and the degree of control that the company will encounter in the country. In entering an international business, it is important that the management of the HM should be able to choose marketing entry strategies and carefully choose the product that the company will market in India. Exporting, is the simplest form of marketing entry strategy which includes direct or indirect method such as using an agent, in the case of direct method and counter trade if the company opted to implement an indirect method. Due to technological advances, direct marketing is staging a comeback, leading to a relationship orientation. Moreover, since HM wants to be known globally, there are many other ways the company can choose from like joint venture or export processing zone. The management of HM may decide to choose the export strategy and include in their operation the specific channels to market their product. Relationship marketing has revolutionized the traditional marketing and has become the biggest paradigmatic shift in marketing practice in recent decades.It has not only changed customers to advocate by replacing customer satisfaction by customer delight but has also increased quality service offers that exceeds expectations. Similarly, it will open new horizons for HM. It will trigger the HM to introduce new products and services. According to Berry and Parasuraman (1991: 25) relationship marketing concerns attracting, developing and retaining customer relationships. Relationship marketing will provide HM with necessary selling approach to cope with various challenges, set by the modern market in India. Relationship marketing transforms single usage to multiple service usage and will strengthen HM by providing them the wherewithal with which they can carry out effective customer services in India. Nowadays, competition in fashion industry and demands of customers are increasing constantly. They demand for global fashion company like HM where there are provisions for an incentive to the customer. So, strong commitment to customer care, attraction and maintenance at all levels are the top priority of HM, while dealing with the customers. Relationship marketing will help HM to overcome these problems and make the sales procedures much simpler. Palmer (2001) enumerated the components of relationship marketing as being: a focus on customer loyalty and retention; long term orientation; tracing identifiable buyers; distinguishing different levels of relationship between the buyer and the seller; high levels of customer dedication; and service quality as being the responsibility of every employee. Relationship marketing will transform indifferent customers into loyal clientele and emphasizes on their retention. Customer retention is the means to delivering long-term profitability in H M. Customer relationships management focuses on customer retention, and customer retention is believed to be more profitable than customer acquisition. Dawkins and Reichheld (1990) found that higher retention rate leads to higher net present value of customers. The longer customers can be retained by HM, the more and more tangible benefits will accrue from a sustained income stream. The end goal of relationship marketing is profit for HM. Saren and Tzokas (2000) raised the usefulness of relationship marketing in creating unique, difficult to imitate knowledge through the processes of interaction and dialogue with the customer. Knowledge about customers can only be enhanced if HM is able to maintain lasting relationships with their customers. The determinants of store choice, customer loyalty, patronage behaviour, customer retention and relationship marketing have been widely studied around the globe. Therefore, a considerable volume of literature exists, especially regarding fashion industry. However, there is still considerable scope for research in this field as the environment of fashion industry is in a constant state of flux and the emergence of new store formats in India has led to dramatic changes in consumer behaviour. New and existing fashion industry tend to provide a completely new experience for their consumers by offering sophisticated customer service, a wide and assorted variety of goods, breakfast ambience, quality imported and branded products. Since, fashion has invading people style of living and HMs the product that has been chosen to go international market. Hence, this research will suggest a marketing entry strategy for HM using Porters Five Forces model (Porter, 1980) and SWOT analysis of other HM companies in other countries. The company is a new entrant to the Indian Market, thus, this paper will provide a marketing entry strategy analysis for the company as it invade the market in India. Competitors Analysis Competitors analysis is very important since HM is a new entrant within the market place. It is essential so that the HM will be able to know their competitors and the possible strategy that they may use to level up such competitors and know the needs of the target market. Thus, this means that HM will enter the India as a beginning industry considering many competitors within the market place. Marketing Entry Analysis Utilizing Marketing Mix Marketing is considered as one of the most important element underpinning successful business creation and because of its complex applications, marketing is defined in a variety of ways (Sheth, Gardner, and Garrett 1988). According to Elliot (1990), the marketing concept was first promulgated in the late 1950s. The importance of marketing concept incorporates oft-repeated elements such as: customer orientation; integrated marketing efforts; and resultant profitability (Elliot, 1990). The marketing mix principles can be adjusted on a frequent basis to meet the changing needs of the target market and other dynamics of marketing environment (McCarthy, 2004). In relation to marketing plan, marketing mix includes both short term and long term strategies makes for a more profitable marketing mix. Long term strategies build brand/company awareness and give sales revenue a permanent, gradual boost. Short term strategies create a temporary, immediate revenue boost by giving buyers an incentive to purchase. By implementing both long and short term strategies, you can attend to immediate sales goals while building your business reputation and goodwill (Kyle, 2004). 1.1. Product HM AB (originally known as Hennes Mauritz) is a Swedish clothing company, known for retail of low-cost designer clothings. It was established in Và ¤sterà ¥s in Sweden in 1947 by Erling Persson, though at the time it only sold womens clothing and was called Hennes, which means hers in Swedish. Persson acquired the premises and inventory of a Stockholm hunting equipment store named Mauritz Widforss in 1968. Persson expanded into menswear and renamed the store to Hennes Mauritz, later abbreviated to HM (www.hm.com). H M is the worlds favourite and preferred designer of apparels and clothing for man and women. In addition, H M is also known not only for their fashion cosmetic but because of the quality of the clothes designed durability and the funkiness of its clothes. Through the online stores, HM provides the regional, continental and European Market an exclusive clothing designs. The main goal of HM is to provide innovative designs of apparels and clothes for different types of people in different countries all over the world. The company is known because of its strategy of providing clothing designs exclusively for each countrys preferences and needs. 1.2. Pricing H M is believed to have advantages when it comes to its pricing tactic. In order to be known into the market place and as a new entrant, the company will provide its target market with an affordable cost while providing them a high quality products and services. The company will be given the customer and client a price that is lesser than its competitors so that the consumer will be enhanced to buy and patronize the H M clothes and cosmetics. 1.3. Placement/Distribution The HMs products will be distributed directly to its clients and consumers in order to be known in the market place. HM products can utilize joint venture strategies with distinguished distributor of apparels, clothes and cosmetics, providing them with great offers, so as to market the product of the H M internationally. In 2003, HM announced its entry into the traditionally exclusive Milan fashion scene. It remains to be seen if HM and other low-end retailers will be able to find a market there. In February 2004, The Gap, another prominent international retailer, sold off all of its German outlets to its competitor, HM. HM launched its first American outlet on March 31, 2000 on New Yorks famous Fifth Avenue. Following the success its stores, additional outlets were opened in the SoHo, Gramercy, and Herald Square areas of Manhattan, followed by outlets in Upstate New York in Syracuse, Utica, and West Nyack. The brand then expanded to other regions of the country, including Chicago and its outlying suburbs. The first two HM stores to appear on the West Coast of the US opened in San Francisco, California on November 19th, 2005. HM opened its first Canadian store in Fairview Mall in Toronto and soon after, its store in Torontos Eaton Centre was opened in March 2004. Following great financial success, HM opened ten other stores within the Greater Toronto Area. Stores were also opened in Montreal in Spring 2006. HM continued its expansion in the Canadian market and doubled the number of stores in 2006. It planned new markets include Barrie, Hamilton, London, Kitchener/Cambridge/Waterloo, St. Catharines and Windsor and Ontario market, Fairview (Pointe Claire) shopping centre, Rockland Centre, the Galeries dAnjou and the Carrefour Laval. (www.hm.com) 1.4. Promotion/Communication HM can use video advertisements, print advertisements and the concept of e-marketing to promote its products. These promotion and communication strategy will tend to meet the consumers form different places everywhere, especially those target markets or the consumers in the working place. Moreover, since the trend in the market place today is the usage of e-marketing, the company will provide a website that any client can access. The use of the Internet is changing technologically advanced marketing overnight while different industries have been trying to use it as part of their marketing strategy. It does not only reconfigured the way different firms do business and the way the consumers buy goods and services but it also become instrumental in transforming the value chain from manufacturers to retailers to consumers, creating a new retail distribution channel (Donthu and Garcia, 1999). E-marketing is a powerful tool used that can be used by HM. E-marketing is defined as the process of achieving marketing objectives through the use of electronic communications technology (ICT). Smith and Chaffey (2001) have provided a 5Ss learning devices on how the internet can be applied by all business firms for different e-marketing tactics. These 5Ss are useful for HM and are se lling, serve, speak, save and sizzle. E-marketing or online marketing strategy can be used by HM to market its products. Thus, the HM has created its own website (www.hm.com). HM will use the e-marketing strategy is to keep in touch to different internet users and to be able to attract more clients and consumers. HM will use e-marketing to accelerate its business portfolio whether the user of the website is a customer, employee, stockholders, vendors, retailers or end customers. 1.5. Market Segmentation Marketing segmentation is defined as an aggregating process clustering people with similar needs into a market segment (Perreault McCarthy, 2002: 74). According to Ravesteyn (2005), customer segmentation is critical for an effective relationship marketing strategy. HM will provide its target consumers for its product by using market segmentation strategy. The segmentation of the market is a critical aspect of relationship marketing and the segmentation of business customers by HM must be in line with the different levels of relationship offered by the company. They need to make use of relationship marketing and management at segment or market level to identify the target market they intend pursuing (Stewart, 1995). Primarily, the context of the market segmentation for this company will be the Psychographics. Strydom, Cant Jooste (2000) identify the following four types of segmentation: demographic, geographic, psychographic and behavioural segmentation. Psychographics includes soc ial class, lifestyle, and personality variables (Chiagouris and Kahle, 2000). The end result of using these variables is a psychological profile of each market segment. Issues also examined the customers loyalties, habits and self-concept. Social class describes how individuals want their office automation will meet their comfort and satisfaction, what they consider important about their immediate surroundings, their opinions on various issues, and their interests. As lifestyle studies concentrates on what the consumer requires, using these study results as marketing strategies eventually became a marketing concept. The marketing concept is a basic philosophy that maintains that HM should endeavour to satisfy the needs and wants of customers through a coordinated set of activities that also allows the HM to achieve its goals at a profit. The HM must be able to consider its consumer, especially the demands of the consumer so as to let the business have an opportunity of having an expansion of its business portfolio as required by the consumers. The focus of this overview is on the behavioural segmentation process, which refers to the segmentation of buyers or customers into groups on the basis of their knowledge of, attitude towards, use of or response to a product or service of a HM. The behavioural variables identified by Kotler (2000) include: Occasions occasional buyers develop needs, purchase, or use products. Benefits refer to the benefits that buyers seek. User status includes potential users, regular users, non-users, first-time users or ex-users. Usage rate will include light, medium or heavy users. Loyalty status are classified as hard-core loyals, split loyals, shifting loyals and switchers. Buyers-readiness stages where the customers are either aware or unaware of the product or service, informed, interested, have a desire for the product or service and have intent to buy. Attitude enthusiastic, positive, indifferent, negative and hostile. Research Objectives: Relationship marketing will contribute significantly to the development of HM in India. Therefore, it becomes essential to study its applications in a fashion company in India. This study fulfils this need. The study addresses the different pros and cons of relationship marketing in a fashion company in India. Thus, the general purpose of this research investigation is to identify, describe and analyse factors that have an impact on relationship marketing, customer retention and customer acquisition in Indian fashion context. The main objectives of this study are given below, To identify, describe and analyse factors that will have an impact on relationship marketing, customer retention and customer acquisition in a fashion company and at HM in India. To appraise the views of customers of HM in India, how they feel about the companys relationship with them. To gain insight on how HM in India build customer relationship marketing tactics. To understand and determine the mediating role of customer behavior between relationship marketing and customer retention and acquisition. To indentify the market entry strategies for HM in India. Research Questions: What is the relationship marketing tactics practiced by the HM in India? What is the market entry strategy practiced by the HM in India? Deliverables: As it has been described in the objectives of the research project that the main purpose of this study is to examine the market entry strategies and relationship marketing by HM in India and customer relationships in Fashion Company and to find out how fashion company relationships with customers promotes its entry in India. The final product of this research project will be a report, containing the HMs relationship strategy and market entry strategy in India, what are their advantages and disadvantages. The report will contain the perceptions of employee and customers. Finally, the report will highlight some relationship marketing problems of HM and a fashion company and suggest some guidelines to remove these problems and improve its customers base in India. Research Methodology: Interested customer and would be customers of HM in India will be approached to collect the data. There are two kinds of data. Primary data Secondary data Primary data includes the information about relationship marketing and market entry strategy available from customers of HM in India. This also includes responses by the different employee of HM on the shop-floor. Secondary data will tell about the impact of relationship marketing in the retailers and the data has been available in their system. To collect the data, retailers employees, posted at different positions, will be contacted. Similarly, to assess the changes in retail services, caused by the relationship marketing, customers views will also be found out. The tools to collect this data will be the surveys. For this, employees and customers will be interviewed, where as to know the views of customers, different questionnaires will be prepared to ask them different questions. To analyze the collected data, different statistical techniques will be used. Qualitative research can be referred to as the opposite of quantitative research method. Any research method has its advantages and it disadvantages. Qualitative research is a study done that produces its results and findings that do not result from statistical means or other method of quantification. This method of inquiry requires a high level of intelligence and experience from the researcher to arrive at a more realistic and targeted data from the respondent. Quantitative research is referred to as a measurement of how people feel, think or act in a particular way and that this survey tend to include large samples from fifty to any number of interviews, structured questionnaires containing mostly closed questions that require questions along with set responds. This involves the clear statement of variables i.e. specifying the dependent and the independent variable. Resources: The most important thing to carry out any research project is to know the background, research objectives, and research methodology of the research project. For this literature is searched out. The University Library will be the primary source to review the literature. Books in hard and soft form will be obtained from the library. Similarly, different research journals and articles in the library will be valuable assets to prepare a comprehensive research report. To prepare the questionnaires, surveys done by Fashion Company to know the relationship marketing and market entry strategy will be used. Similarly new questionnaires, depending on the situation, will also be prepared. Project Plan: The project is divided into three stages. Literature review Interviews of employees of HM and their customers Report writing Literature Review: To carry out any research project, a research must be able to review the literature. This makes researcher aware of work, done by other people in the respective field. The main source of literature is the journals, in which different researchers publish their findings of problems. Interviews of retail employees and customers: In order to collect information on the impact of market entry strategy and know impact on relationship marketing in the Indian fashion company, the employees of HM will be interviewed. They will be asked about the positive and negative points of relationship marketing utilization in their stores. Similarly, customer views will be taken through the interviews. Considering all these views, suggestion to improve the customer services will be advised. Report writing: The final product of the research project will be a written report. The structure of my report will be divided in following categories, Introduction: In the introduction, the market entry strategy and history of relationship marketing use in fashion sector will be discussed and how different relationship marketing systems will be used to address the issues of HM, with the passage of time. Aims and objectives: In this part of report, purpose of the research project will be stated very clearly; what are the aims of the study and what are the problems, which will be discussed in the report. Research methodology: This is the core part of the report. After stating the problem, different research methodologies will be explained to gather the data. The primary source will be the interviews of the employees and customers. From these interviews, impact of relationship marketing and market entry strategy of HM will be assessed. The questions asked to employees and customers will be provided in the appendix of report. Conclusions: After describing the problems and research methods, suggestion will be advised to eliminate the highlighted problems. Risk: In order to carry out any research project, it is very important to study all the aspects of the project. One of the main aspects regarding any project is the risks involved. There are also some risks involved, regarding the research project under consideration. One risk can be privacy. HM employees can be duty-bound and show reluctance to give information about their working procedures and on relationship marketing operations, used in the fashion company. Impact and Beneficiaries of Research: The main objective of this research activity is to investigate the market entry strategies and relationship marketing by HM in India and customer relationships in Fashion Company and to find out how fashion company relationships with customers promotes its entry in India. This research can be very helpful for the fashion sector. For instance, it will analyze the effectiveness of relationship marketing and its market entry strategies in India. It will determine the views of HM employees about the introduction of relationship marketing in their working environment. From this, both positive and negative points about the role of relationship marketing in the fashion sector, put forward by the HM employees, can be known. Similarly, the customers views about the insertion of relationship marketing and the effect of HMs market entry strategy can be found out. Customers level of satisfaction about the HMs customer services can be assessed. This report will also show the comparison of differe nt strategies among different HMs companies worldwide and how they use relationship marketing to achieve the same target. By knowing the views of customers through this study, their difficulties while dealing with HM, can also be discovered. This report will also address these issues and suggest solutions to eradicate these problems. So, the major beneficiaries of this report are the management of HM and by considering the suggestions of the report, they can improve their market entry strategies, customer services and hence the customer relationship from HM will be invigorated.

The legal capacity

The legal capacity CAPACITY TO CONTRACT Legal capacity is defined as the power provided under law to a natural person or juridical person to enter into binding contracts, and to sue and be sued in its own name. In order to be bound by a contract, a person must have the legal ability to form a contract in the first place. This legal ability is called capacity to contract. Both parties in a contract must have the necessary mental capacity to understand what they are doing. Under common law anyone has the right to enter into a contract, except for minors, people with mental disability and also people who are under the influence of drugs or alcohol. For a person to avoid a contract on the ground of their incapacity, they must also show that they lacked capacity to enter into a contract and that the other party knew or ought to have known their incapacity. A person who is unable, due to age or mental impairment, to understand what she is doing when she signs a contract may lack capacity to contract. For example, a person under legal guardianship due to a mental defect completely lacks the capacity to contract. Any contract signed by that person is void. In other situations, a person may not completely lack the capacity to contract. The contract would then be voidable at the option of the party claiming incapacity, if he or she is able to prove the incapacity. INFANCY The term infant differ from the term minor. In most cases, legal contracts are voidable if one of the contracting party is a minor. The law states that an infant is not bound by the contracts he or she enters into except for the purchase of necessaries and for useful contracts of service, that is they would have to pay for the necessary goods and services that they consume. However, it is stated in the British Columbia Infants Act (RSBC 1996 c.223) that all contracts cannot be implemented against an infant, regardless of whether it includes necessities and beneficial contracts of service. If there is a contract between an adult and an infant, adults are bound but infants can break away from the contract at their option, which means that the contract is voidable. The infants may endorse a contract once they have reached a maturity age. In the case of executed contract, the infant cannot avoid debt if they have obtained advantages under the contract, except if what they obtained has no value. Any one of the party can apply to the court upon the termination of contract. MINORS A minor generally cannot form an enforceable contract. A contract entered into by a minor may be canceled by the minor or by his or her guardian. After reaching the age of majority (18 in most states), a person still has a reasonable period of time to cancel a contract entered into as a minor. If, however, he or she does not cancel the contract within a reasonable period of time, the contract will be considered ratified, making it binding and enforceable. If you intend to enter into a contract with a person who is under the age of 18 years it is essential that you give that person the opportunity to consult with a suitable adult about their rights and responsibilities before concluding the deal. This will make it less likely for a dispute to arise about their capacity.A young person is generally bound to a contract for necessaries which includes food, medicine and clothing. Contracts for necessaries can also include contracts for education or employment. However, some other contract s will not be binding on a young person, including contracts for goods or services which are not necessaries and credit contracts. Based on the case study, John has the age capacity to enter into a contract as he is an adult. He was walking alone around SOGO Shopping Complex to do some window shopping. His age has got to be above 18 years old. This is because he is working, and this is illustrated in the sentence as I was very busy with my work, I only managed to go to the shop a week later. Case example: Nash v. Inman [1908] 2 KB 1 The defendant, a minor, purchased a number of waistcoats from the plaintiff. The issue was whether they were necessaries. The court held that the waistcoats were not necessaries as the minor had an adequate supply at the time of sale. It was held that two conditions had to be met before goods or services would be regarded as necessaries. First, the goods or services had to be suitable to the condition in life of the minor (e.g. a minor accustomed to living a life of luxury will have a different condition in life from a minor living in impoverished circumstances). Whether this was the case would depend on the type of lifestyle the minor in question was accustomed to leading. Second, the goods or services had to be suitable to the minors actual requirements at the time of supply. If the minor had an adequate supply of the relevant goods from another source, this requirement would not be satisfied. MENTAL DISABILITY In 1954 the High Court dealt with the issue of a persons soundness of mind when involved in contractual dealings. The court held that it requires, in relation to each particular matter or piece of business transacted, that each party shall have such soundness of mind as to be capable of understanding the general nature of what he is doing by his participation (Gibbons v. Wright (1954) 91 CLR 423).It follows that if a person is so drunk, mentally ill or senile that they have no idea that they are involving themselves in a contract, they will lack the necessary contractual capacity. If however, their mind is affected by their problem, but they are nevertheless aware that they are involving themselves in a contract, the capacity to contract will probably exist unless the other party deliberately takes advantage of their weakness. (This is linked to the way in which the common law and equity deal with unconscionable conduct where a person takes advantage of a person with a disability). Contracts with intellectually impaired persons is void. Similarly, contracts with involuntary mental patients is void. Some types of mental disability may be sufficient to allow a person to repudiate a contract in certain circumstances. Generally, the law is concerned with the lack of capacity arising from mental disability. For example, people who have schizophrenia may have delusions, but if they can manage their own daily and business affairs and look after their personal finances, they may have the capacity to enter into contracts. The mentally disabled persons that the law protects are those who are unable to manage their own affairs or are unable to appreciate the nature and consequences of their actions. Provincial legislation provides that a person can be declared to be unable to manage his or her affairs. If there has been such a judicial finding, contracts made after the judicial finding are void on the grounds that there is a lack of capacity to consent to the provisions of a contract. Contracts made prior to the finding may be voidable. However, if a person lacks capacity because he or she is unable to handle his or her affairs, but there has been no judicial finding, the contracts made are voidable at the option of the person who is mentally disabled. If the contracts are not repudiated, they are presumed to be enforceable. Case example: York Glass Co. Ltd v. Jubb [1925] All ER Rep 285 Jubb contracted to purchase the plaintiffs company business. On the date of contracting, he was technically insane and shortly thereafter was placed in a lunatic asylum. The receiver of his estate, who was appointed under a lunacy statute, repudiated the contract. The plaintiff company sued for damages, alleging the repudiation was wrongful. The court held that a contract entered by someone of unsound mind is valid unless the impaired person can show that the other party was aware, at the time of contracting, that the impaired person was so insane that he was incapable of understanding what he was doing. In this case, there was no evidence to show that the plaintiff company knew or suspected that Jubb had been insane at the point of contracting. The contract was valid and Jubbs estate had to pay damages for not performing the contract. UNDER THE INFLUENCE OF DRUGS OR ALCOHOL If a person signs a contract while drunk or under the influence of drugs, can that contract be enforced? Courts are usually not very sympathetic to people who claim they were intoxicated when they signed a contract. Generally a court will only allow the contract to be avoided if the other party to the contract knew about the intoxication and took advantage of the intoxicated person, or if the person was somehow involuntarily intoxicated (e.g. someone spiked the punch). The law will intervene in some circumstances where someone who is intoxicated enters into an agreement. Intoxication alone is not sufficient, but it can be a defence to enforcement by the sober party, and the intoxicated party may void the contract on the basis of his or her own intoxication in the following circumstances, that is firstly, the intoxicated party, because of the intoxication, did not know what he or she was doing. Secondly, the sober party was aware of the intoxicated state of the other party. Thirdly, u pon becoming sober, the intoxicated party moved promptly to repudiate the contract. The basis for this approach is not that one party is drunk but that the other party might defraud the drunkard. Thus, even where the sober party is not aware of the intoxicated state of the other party, if there is evidence of intoxication so that it may be presumed, the unfairness or one-sidedness of a contract might result in its being voided. This view moves the law toward a position that an unconscionable agreement permits the court to presume that the sober party had knowledge of the intoxication of the other party once there is evidence of intoxication. Based on the case study, when John bargained for the 6 seater dining set, he was not under the influence of alcohol or drugs. He was well aware of the bargain and he realised that he has entered into an agreement with Comfortable Furniture Sdn Bhd. Case example: Matthews v. Baxter (1873) LR 8 Exch 132 Baxter, while drunk, agreed at an auction to purchase a property. Once sobriety returned he decided that he wished to affirm the contract that had been made by him while drunk. Sometime later he had a change of mind and he sought to rescind the contract, arguing that he lacked capacity to enter the contract by reason of intoxication. The court held that because Baxter had confirmed the contract it was no longer open to him to avoid the contract on the grounds of intoxication. This was despite the fact that he had made out the necessary element of this defence. BANKRUPTCY Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. These individuals would not be able to pay their debts and lose their status as creditworthy. Most states differ on the means whereby their outstanding liabilities can be treated as discharged and on the precise extent of the limits that are placed on their capacities during this time. However, they are returned to full capacity after discharge. In the United States, some states have spendthrift laws where an irresponsible spender is claimed to lack the capacity to enter into contracts. Based on the case study, Comfortable Furniture Sdn Bhd has the business capacity to operate its business. This is because the company is not facing bankruptcy. Therefore, the company has the capacity to enter into a contract or agreement with John. SIGNIFICANCE WHY CONTRACTING PARTIES REQUIRE LEGAL CAPACITY TO ENTER INTO LEGALLY BINDING CONTRACT Not everyone is legally entitled to enter into contracts. Some persons, by their status, are presumed not to have the ability to enter into contracts or have limited rights to contract. Prevention of fraud provides for formality requirements and the protection of persons who lack full capacity to enter into contracts. If there is no capacity, the incapacity party would become vulnerable and weak. If one party lacks the intellectual capacity to protect himself or herself, then the other party may act dishonestly during the bargaining process or takes advantage of a position of trust, or if the other party has expert knowledge of the subject matter of the contract that the weaker party cannot have and takes unfair advantage of that knowledge. Besides that, without capacity, the contract would be void. A contract is void when it involves minors. This type of contract will have no effect as it is not recognised by the court and parliament. Therefore, if there is no capacity, the contract would not be enforceable. The purpose here is to protect the weaker party from the stronger and more able party. This class of persons who lack or have limited capacity to contract include minor and persons under mental disability. The general rule is that minors may not enter into contracts. The reason for this rule is that minors are presumed to be naive, inexperienced, and easily taken advantage of. So, some protection is required to avoid them from being cheated. The law also interferes in circumstances where someone who is intoxicated enters into an agreement. The basis for this approach is not that one party is drunk but that the other party might defraud the drunkard. The contract may not be legal if there is no capacity. If there is no capacity, people with mental disability, minors, and also those who are under the influence of alcohol or drugs would be allowed to enter into contracts. The people who have mental disability and under the influence of drugs or alcohol do not have the mental capacity to enter into contracts. They are unable to think well and they are not able to make a wise decision. So, if there is no capacity, the contract will lose its validity. Case example: Mercantile Union Guarantee Corporation v Ball (1937) An infant haulage contractor who took a lorry on hire-purchase was held not liable for arrears of installments. Case example: Cowern v Nield (1912) It was held that a minor who was a hay and straw merchant was not liable to repay the price of the goods which he failed to deliver. Case example: Doyle v White City Stadium (1935) An infant boxer was held bound by a clause in his contract which provided for forfeiture of his prize money (as happened) he was disqualified. The contract as a whole was similar to apprenticeship. Case example: Valentini v Canali (1889) A minor leased a house and agreed to buy some furniture, paying part of the price. After several months the minor left, and avoided the contract as he was entitled to do. He could not recover the payments which he made for the furniture, however, because he had received some benefit from the contract. Case example: Leslie Ltd v Sheill A minor who lied about his age to obtain a loan could only be forced to return the cash he borrowed.Sheill failed to repay two cash loans he had obtained by falsely claiming to be an adult. The contract was not enforceable (not for necessaries) so the lender asked for restitution of the money on other grounds, including that Sheill had committed the tort of deceit (fraudulent misrepresentation). The English Court of the Kings Bench held that Sheill could not be sued for deceit because that would make a minor indirectly liable for an unenforceable contract. The court could only order restitution if the lender could prove Sheill still possessed the actual notes and coins he had borrowed. Case example: Roberts v Gray (1919) Roberts agreed to take Gray, a minor, on a billiard tour to instruct him in the profession of billiard player. Gray repudiated the contract. The court held that Roberts could recover damages despite the fact that the contract was executory. Case example: Scarborough v Sturzaker A bicycle was a necessary because the minor had only one and used it to travel to work. Sturzaker, a minor, cycled 19 kilometres to work each day. He traded in his old bicycle to Scarborough and made a part payment on a new one. Sturzaker repudiated the contract and refused topay the outstanding amount. The Tasmanian Court held that the bike was a necessary. Therefore, the contract was enforceable and Sturzaker had to pay the money owing. Case example: Hart v OConnor The Privy Council said in Hart v. OConnor(1985) that an insane person who appears sane can rely on the independent and separate ground of unconscionability which relieves abnormal mental weaknesses even short of incapacity. Undue influence may also apply. Case example: Peters v Fleming (1840) Held an expensive gold watch chain was a necessary for a rich young man. Point of law being that it depends on the status of the minor as to whether a luxurious item is deemed a necessary. Case example: Chaplin v Leslie Frewin (1966) Contract was made to write the autobiography of Charlie Chaplin held as binding as it allowed a minor to start to earn a living as an author.However if on the whole a contract is unreasonable, oppressive and not beneficial then it will not be binding. Case example: De Francesco v Barnum (1890) A girl of fourteen was apprenticed to D for seven years in order to learn to dance. D was not obliged to maintain her, nor did he have to pay her unless he found engagements for her. Even when engagements were found, the rate of pay was very low. She could not obtain engagements for herself, nor was she allowed to marry, during the seven years. It was held that the contract was not binding upon the girl, as it was unreasonable, oppressive and not beneficial to her. Point of law is as above. Case example: Gore v Gibson Advanced the view that a contract for necessaries supplied to a drunk could not be maintained if upon sobriety the contract was repudiated. Case example: Hawkins v Bone The action for breach of contract was brought by the vendor of land which was knocked down to the defendant at an action. The defendant purchaser pleaded in defence of his drunkenness but did not allege that the vendor or auctioneer knew of this condition. Pollock C.B., in directing the jury said the plaintiff was entitled to the verdict: unless the defendant was in the state he describes himself to have been, that is wholly incapable of any reflective or deliberate act, so that, in fact, he was utterly unconscious of the nature of the acts he did, for example, having signed the contract and paid his money. Case example: McLaughlin v Daily Telegraph Ltd Holds that a power of attorney executed by a person while insane is void even in respect of actions that take place when the grantor has recovered his sanity; the actions that take place under the guise of the power of attorney are of no effect. Likewise, it is of no consequence that third parties act on the foot of the deed. If, however, the power of attorney enables the lunatic and his dependants to benefit from obtaining a supply of necessaries, an account may be ordered in relation thereto even though the power of attorney itself is void. For the deed to be void, however, it must be shown that the signature is a mere mechanical act and the mind of the signor must not accompany the act. Case example: Cf. Imperial Loan Co. v. Stone [1892] the rule had in modern times been relaxed, and unsoundness of mind would now be a good defence to an action upon a contract, if it could be shown that the defendant was not of the capacity to contract and the plaintiff knew it. Case example: Seaver v. Phelps which was trover for a promissory note, pledged by the plaintiff while insane, to the defendant, the Court were, on behalf of the latter, requested to charge, that although the plaintiff might have been insane at the time of making the contract, yet that if the defendant were not apprised of that fact, or had no reason, from the conduct of the plaintiff or from any other source 380 was held entitled to a decree of foreclosure. It seems equally clear that he is not liable when the other to suspect it, and did not overreach or impose upon him, or practice any fraud or unfairness, the contract could not be annulled. Case example: Beals v. See. it was held that the administrator of a lunatic could not, in the absence of fraud or knowledge of his state of mind, or such conduct on the part of the lunatic from which his disease might fairly be inferred or suspected, recover back the price of merchandise sold to him, even though it was unsuited to the object for which it was purchased, and above market price.

Middle Passage :: essays papers

Middle Passage The triangular trade system was so named because the ships embarked from European ports, stopped in Africa to gather captives, after which they set out for the New World to deliver their "human cargo," and then returned to the port where they had originated. The Middle Passage was that leg of the slave triangle that brought the "human cargo" from West Africa to North America, South America, and the Caribbean. Depending on ship design, weather conditions, and points of departure and arrival, the journey across the middle passage lasted from six weeks to three months. A few days before departure on the slave ships, all enslaved men, women, and children had their heads shaved, supposedly to reduce the spread of disease and facilitate hygiene. On the day of departure for the New World, they gave slaves who had been confined to the holding camps awaiting ships an "abundant" meal, signaling their last hours on their home continent of Africa. They were then stripped naked of their clothes, chained in pairs by the ankles, and taken by canoes, usually at night, to slave ships which were usually anchored in the harbors. Inside the ships, slaves were stacked and crammed into the dark and small holds, which now became their home. The conditions on slave ships repulsive, horrifying, painful, and inhumane. These peoples entire journey was primarily spent sitting on top of each other on wooden plank floors. Besides many diseases, ship holds were poorly ventilated, sometimes causing suffocation during storms when the few existing hatches had to be closed. And of course, normal bodily functions had to be done: people used the restroom, bled, vomited, coughed, sneezed, died, etc., all in the holds of slave ships. In addition to the stench of slave ships, the practice of throwing dead and dying slaves overboard brought sharks from miles around to feed on the bodies. Many people committed suicide by jumping overboard or hanging themselves with any available rope. It has been said that "if the Atlantic Ocean were to dry up today, there would be a trail of human bones stretching from Africa to the Americ as.

Buddhism Essay -- essays research papers fc

The origin, traditional Buddhism began in the 6th century BC with the historical personage born Siddhartha Gautama, but better known by a variety of titles including Shakyammi, Tathagata, or most commonly Buddha, the enlightened one. The legend of the Buddha’s life has acquired plenty of variations and embellishments over the years, but the basic facts are accepted as traditional, including the dates of his birth and death (563-489 BC by Western reckoning, 624-544 according to Sri Lankan tradition). The story of Buddha’s birth is encrusted with myth and fable as that of any God-figure in human history. For instance, he is said to have issued from his mother’s womb stating that his cycle of rebirths was about to end. Again, some Buddhists devoutly accept the fables as we in the west accept Christmas narratives, while others choose to focus on the truths beneath the myths. We do know with some certainty that the Buddha was born to a royal family in northern India, in the foothills of what is now Nepal. Siddhartha Gautama led a sheltered existence in the court of his father, Shuddhodana, the king of the Shakya clan, who shielded him from any knowledge of human suffering or religions of the time. Soon after his birth a soothsayer named Asita predicted that he would become either the emperor of all India or if the "Four Passing Sights" should come to pass he would renounced the world and would become the greatest spiritual leader the world has ever known. Shuddhodana, Gautama, a member of the warrior-ruler caste, preferred the royal vocation and provided his son with three palaces located so that his son would not experience the dramatic seasonal changes. He placed at his son disposal anywhere from 10,000 to 40,000 dancing girls to keep his mind firmly rooted in the "real" world. He also gave orders that his son should never see t he sick, the aged, dead bodies, and nor should a monk be allowed near his son. But, as so often happens when manipulative fathers groom their sons to take over the family business, Siddhartha rebelled. At 16 he married a beautiful young princess named Yasodhara, by whom he fathered a son, Rahula. Over the ensuing years Gautama, was shielded from the facts of the real world. But legend states the gods intervened with what is now called the "Four Passin... ...He then continued to meditate for a total of 49 days, for it was at this time all Buddhist down through the ages believed, Gautama, first experienced Nirvana: the goal of Buddhism; it means freedom from karma; extinction of all craving; the realization of the true nature of the mind. This is the closest thing in Buddhism to the western world’s idea of salvation, the ultimate goal of all religious faiths. Traditionally, the accounts were committed to writing in Sanskrit and in Pali, a Sanskrit derived Indian dialect within 100 years of the Buddha’s death, but modern scholars places the dates closer to the 2nd and 1st century BC. The written records of his sermons and dialogues are known as sutras. Unlike other major religions of the world the concept of a divine being, as in, Hinduism’s Atman-Brahman, Judaism’s Yahweh, and Islam’s Allah, Buddhism does not proclaim any worship of any god. Buddhist believes that the divine being, per say, is not something you believe in, or worship, or can describe but instead something you experience. Bibliography 1. http://buddhism.about.com/ 2. http://www.buddhanet.net/ 3. http://en.wikipedia.org/wiki/Buddhism

Shakespeares Hamlet - Hamlet’s Best Friend, Horatio :: GCSE English Literature Coursework

Hamlet’s Best Friend, Horatio      Ã‚  Ã‚   A.C. Bradley in Shakespearean Tragedy notes a problem involving Horatio in Shakespeare’s Hamlet:    When Horatio, at the end of the soliloquy, enters and greets Hamlet, it is evident that he and Hamlet have not recently met at Elsinore. Yet Horatio came to Elsinore for the funeral (I.ii. 176). Now even if the funeral took place some three weeks ago, it seems rather strange that Hamlet, however absorbed in grief and however withdrawn from the Court, has not met Horatio [. . .] . (368)    The closest friend of the hero is a fellow-student from Wittenberg (Granville-Barker 93) -- Horatio. He is an interesting and faithful friend, as this essay will demonstrate.    Marchette Chute in â€Å"The Story Told in Hamlet† describes Horatio’s part in the opening scene of the play:    The story opens in the cold and dark of a winter night in Denmark, while the guard is being changed on the battlements of the royal castle of Elsinore. For two nights in succession, just as the bell strikes the hour of one, a ghost has appeared on the battlements, a figure dressed in complete armor and with a face like that of the dead king of Denmark, Hamlet’s father. A young man named Horatio, who is a school friend of Hamlet, has been told of the apparition and cannot believe it, and one of the officers has brought him there in the night so that he can see it for himself. The hour comes, and the ghost walks. (35)    Horatio, frightened, futilely confronts the ghost:    What art thou that usurp'st this time of night,   Ã‚  Ã‚  Ã‚   Together with that fair and warlike form   Ã‚  Ã‚  Ã‚   In which the majesty of buried Denmark   Ã‚  Ã‚     Did sometimes march? by heaven I charge thee, speak! (1.1)    Maynard Mack in â€Å"The World of Hamlet† maintains that Horatio’s words to the spirit â€Å"are subsequently seen to have reached beyond their contexts. . . (244). So Horatio and Marcellus exit the ramparts of Elsinore intending to enlist the aid of Hamlet, who is home from school. Hamlet is dejected by the â€Å"o’erhasty marriage† of his mother to his uncle less than two months after the funeral of Hamlet’s father (Gordon 128). Soon Horatio and Marcellus make contact with Hamlet with a strange greeting (Bradley 370) and escort him to the ramparts of Elsinore.

Final Reflective Essay

Final Reflective Essay The word literature has a great meaning in everyday life and comes in so many different ways. The body of written works of a language, period, or culture with the imaginative or creative writing especially of recognized artistic value (Houghton Mifflin Company, 2011) is the dictionary meaning. Lyrics, poems, short stories are all kinds of literature and many authors will write something they are passionate about or have an interest in. Many instances there are times a writer will write about a particular subject or within a certain genre and they write in a manner that sometimes had a hidden meaning. To know the hidden meaning the author will use symbolism, and as a writer and reader it helps to understand the elements that go into writing a poem, short story, and lyric. The writer goes through a process of creating a theme which helps to set the tone and will help them to develop the plot. Many times an author when writing a poem or lyric will not always have a character, but will have some sort of setting that resulted from the theme. All of the elements of literature need to have been put into place, and in many times the writer will also put a hidden meaning into the story, poem, or lyrics which the reader needs to read between the lines. Symbolism can be revealed in the theme, the tone or the plot of the story, poem and lyric. To find the underlying meaning or the symbolism the author is trying to portray the reader needs to be familiar with the elements of literature. The story â€Å"Used to Live Here Once† by Jean Rhys, the poem â€Å"The Road not Taken†, by Robert Frost, and the poem â€Å"My Papa’s Waltz†, by Theodore Roethke, follow the elements of literature, and have the symbolism that if the reader was not familiar with could miss the meaning of the story or poem. In the arts, the use of symbols to concentrate or intensify meaning, make the work more subjective than objective (The Hutchinson Unabridged Encyclopedia with Atlas and Weather guide, 2010). To find the underlying meaning or symbol of the story or the poem, it is beneficial for the reader to understand how the elements form the basis of the story or poem. The author starts the process of writing by creating a theme. A theme is defined as a subject or topic or of artistic representation (Merriam-Webster, 2011). In the story â€Å"Used to Live Here Once†, the author Jean Rhys created the theme by making it about a woman who returns to where she used to once live. The theme is described in the story with using words such as â€Å"remembered† and â€Å"same-road†. Using such words helps the reader to associate with the theme and understand what the writer is trying to convey in the theme. Poems are written in the same manner that they should have a theme for the reader to understand what the writer is trying to talk about. In Robert Frost’s poem â€Å"The Road Not Taken†, the theme is about making choices in life and sometimes making the decision that is not usually taken. The theme is not as obvious as it was in the story of â€Å"Used to Live Here Once†. Robert Frost uses words that help the reader to relate to the theme like: â€Å"road†, â€Å"traveler†, and â€Å"one less traveled†. These words have an underlying meaning and even though they are used to help with the theme they also hold symbolism and repent choices in life. With the words that were used in the poem, it helps the reader to relate better to the theme and knowing that a word can be a symbol and have an underlying meaning helps the reader to better understand what message the writer is trying to convey. The theme of the poem â€Å"My Papa’s Waltz†, by Theodore Roethke, theme was based around a child being abuse and used different words that included: â€Å"hung on†, â€Å"battered†, and â€Å"scraped†, and in using these words it had a description of someone being hit and abused. The theme of a story, poem, and lyric’s helps the writer to convey the basis of the story and how they want the literature to come across to the reader. Once the basic formation is created the author can work towards creating tone, and many times as a reader we misunderstand the tone which is also the attitude. Jean Rhys took a hidden meaning to her tone in the story, â€Å"Used to Live Here Once†, in the way she described the children and how they did not see the woman returning to the home that she once lived. The tone and attitude that the writer was trying to convey was one that was quite solemn and somewhat sad, and the tone was a bit hidden in the manner that when first reading the story the writer portrays the character and tone used seems to indicate the story is about a woman who returns home after being gone for a while, when in actuality it is about death. With the tone and attitude being hidden in the story and poems the tone does not become easy for the reader to detect and so it is considered an ironic tone. An ironic tone depends upon a contrast between what the writer’s words seem to say and what they really mean (The Hutchinson Unabridged Encyclopedia with Atlas and Weather guide, 2010). Jean Rhys puts a twist on the story, â€Å"Used to Live Here Once†, and in order to pick up the irony from the theme the reader will need to read the entire story. The theme was based around a woman who had gone back to a place in once she lived, but the irony was she is actually dead and she did not realize what she was seeing and doing was not real. It came to the realization when the writer wrote: â€Å"She was standing by the river looking at the stepping stones and remembering each one. † (Clugston, 2010). This was part of the theme, and as the writer continues on in the story it is written, â€Å"The only thing was the sky had a glassy look that she did not remember. † (Clugston, 2010). This helped the writer when setting the tone, and as a reader a few lines later the irony comes into play. The female character had passed and even though she has returned to where she once lived she was actually dead. This was ironic, but in literature it is classified to be situational irony which occurs when a reader or character expects one thing to happen but something else happens. As a reader we expected the character to get a response from the children when she said, â€Å"Hi†, and put her arms out to touch them, but instead they turned their heads and said, â€Å"Hasn’t it gone cold all of a sudden. D ’you notice? † (Clugston, 2010). Writers of poems sometimes use the same type of irony and they leave it to the reader to read between the lines. The title of the poem â€Å"My Papa’s Waltz†, has an ironic tone because it suggests that it is about the narrator’s father, and â€Å"dancing a waltz†, and just like the story is situational irony. As a reader we would expect to hear how his dad dances the waltz and not expect the story to be about the young boy being hit by his father. Picking up on some of the lines in the poem like â€Å"at every step you missed my right ear scraped a buckle† (gawow. om). In this poem the irony was with the title not reflecting a dance but a beating. This poem like the story had the same type of ironic tone, and that is not always the case, and the ironic tone being so obvious. â€Å"The Road Not Taken†, by Robert Frost, the reader needs to read between the lines to get the meaning of the poem. Th e first lines in the poem are written â€Å"two roads diverged in a yellow wood† (bartleby. com) and at first reading it reads as though someone was walking through the woods and came to two roads but was not sure which way to go. Reading on through the poem it written â€Å"somewhere ages and ages hence: two roads diverged in a wood, and I- I took the one less traveled by, and that has made all the difference† (bartleby. com). The tone was set that someone came to roads and decided to walk down the one less people took, but the irony is that is not what the meaning was to the poem. The meaning is hidden and the irony is Robert Frost was not talking about a road but paths we take in life. There are times in life we need to choose the path and sometimes that choice makes all the difference. The writers all took to writing in a manner that had an underlying meaning in an ironic tone, and can have a lot of symbolism. A symbol is the art or practice of using symbols especially by investing things with a symbolic meaning or by expressing the invisible or intangible by means of visible or sensuous representations (merriam-webster. com), and writers use symbols many times in their writings. Many times they use a symbol in an unconventional or traditional way. The military uses symbols to represent each branch of the service and those are generally obvious but when a reader is reading a story, poem, or lyric it is not as obvious. Jean Rhys’ used the words glassy to symbolism an unclear vision that her character had that symbolized what she was seeing was not actually real. The symbol’s representation helped the writer to set the theme and tone of the story. Stories often have some type of symbolism and they really help the reader to visualize what the writer is trying to convey. Just like a tone the symbol may not be so obvious but the reader will need to read between the lines. Creating a symbol in a story or poem helps the reader better understand the piece. In the poem, â€Å"My Papa’s Waltz†, the waltz was a symbol. The waltz was not to represent the dance around the floor, but an actual fight. The lines written in the poem indicates just that when it was written, â€Å"we romped until the pans slid from the kitchen shelf. † (gawow. com). Just the line alone would not tell the reader that the waltz was a symbol of abuse, but the reader will need to read between the lines, and understanding that can help the writer convey the message by using symbolism. To some people a symbol has a great meaning and can represent a divine being or spirit. Thinking of a divine being of spirit, we tend to think of someone from beyond coming back like in â€Å"Used to Live Here One†, but in â€Å"The Road Not Taken†, the symbol is a divine spirit. The person who came to an impasse in their lives had to make a choice and an inner spirit helped them to choose the one that was best. Using symbols to represent things in someone’s life can be one that you can physically touch or can be a representation of something that cannot be touched. A writer uses many of things to symbolism something else and to realize that it helps that a reader understand how literature is formed by a writer. The writer takes many steps in creating a story, poem, or lyric in which the reader will enjoy. The way that the writer creates and sets a theme for their writing correlates too many aspects of using the literary terms. Once the theme has been set the writer needs to convey the tone in which they want the reader to interpret their writings. Many instances a reader will need to read between the lines in order to understand what tone the writer is writing in. The theme and tone all tie into the representation of a symbol and reading between the lines can help the reader. The writer uses symbols to symbolize something in the theme, while setting tone of story, poem, or lyrics. The writer does their best to create an enjoyable story, poem and lyric so that the reader will continue to read or share it with others. Not always does a reader need to know the literary terms but it is a good idea to know what the writer is trying to convey. references The Hutchinson Unabridged Encyclopedia with Atlas and Weather guide. (2010). Retrieved June 2011, from Credo Reference: http://www. credoreference. com/entry/heliconhe/symbolism Clugston, R. W. (2010). Journey Into Literature. San Diego: Bridgepoint Eduation, Inc. Frost, R. (1920). bartelby. com. Retrieved June 2011, from bartelby. com Great Biiiks Online: http://www. bartleby. com/119/1. html Houghton Mifflin Company. (2011). Thefreedictionary. Retrieved June 2011, from http://www. thefreedictionary. com/literature Merriam-Webster. (2011). Merriam-Webster. com. Retrieved June 2011, from Merriam-Webster A Encyclopedia Britannica Company: http://www. merriam-webster. com/dictionary/theme? show=0&t=1309486471 Roethke, T. (1942). Retrieved June 2011, from Poemhunter. com: http://www. gawow. com/roethke/poems/43. html

Cyclermate

CYCLERMATE REPORT I. Introduction of Cyclermate Lewis Llewellyn and Dai Armstrong were the first two men who made a plan of opening their own company after being redundant as the consequence of the closure of their town’s steel works in South Wales. Both of them belonged to the local cycle touring club and since then, they had become close friends.With the idea of making a traditional upright cycle in sharp of the 1940’s and 1950’s, Cyclermate Ltd has been established and quickly gained success and attracted a number of attentions of customers owing to its high quality hand – made products and word – of – mouth reputation. Over the next 15 years, the company had still expanded and continued to be successful when persuading many small cycle shops in Wales and England to display or at least to keep a stock of brochures of its products.Everything seems to work quite smoothly until 2010, when Cyclermate has faced a lot of issues in terms of finan ce, human resource and operation. To be specific, the demand among buyers in this field continues to fall even price of each Cyclermate’s product has been reduced; the quality of its products are no longer as good as it was in the past which illustrated by the increase of complaints from customers about its quality and fault and the bank manager has expressed concern about the overdraft which will cost Cyclermate a big trouble if it does not solve these problems immediately.These are just some of the obstacles which the company has faced so in this essay, I will analyze more clearly about its difficulty and recommend some positive solutions for Cyclermate which it can follows to handle these issues. II. Cyclermate analysis 1. SWOT analysis First of all, in order to have a wide vision about this company, I have used SWOT as a tool to identify and analyze the situation of Cyclermate at the moment. As regards internal factors, one of the strength of this company which makes it d ifferent compared to the other companies is unique products.As far as I am concerned, with the development of technology, many cycle shops nowadays use a modern production chain to dispose and assemble materials. Nonetheless, the cost for this activity is quite high and most of the products will be the same. When it comes to Cyclermate, almost processes have been settled by hand; thus, staffs can easily add their creation into products and attract customers by the wide range of style of its bicycle.Furthermore, by using traditional method, Cyclermate have brought some new things to the market making buyers feel more interesting, especially when products have been sold in the market are quite common and familiar. When it comes to the weaknesses, as almost Cyclermate’s products have been made by hand so mistakes and faults are inevitable. That is to say, besides the price paying for materials, it also has to spend some more for fixing service.Moreover, with the lack of employee s and capital, Cyclermate has struggled in operating the company and consequently, it normally has to face the insufficient production selling in the market. As regards external factors, a huge opportunity for Cyclermate at the very first is that it produces an unfamiliar product so Cyclermate can avoid big competitors and has a chance to dominate the market. Besides, according to Mr. Llewellyn, there is still strong growths to come in the cycle market as more and more people abandon their cars; hence, this is a good chance for this company to reach to its customers.One of the most striking features which should be considered here is the economic crisis occurring in 2008 resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant ro le in the failure of key businesses, declines in consumer wealth estimated in trillions of US dollars, and a downturn in economic activity.As the consequence, people will have to think about a solution to save money and one possible way at this time is reduce the usage of petrol; in another word, reduce using gas transportation and change to physical vehicle such as bicycle. So if Cyclermate can attracts customers and creates a habit of using bicycle among them, it definitely will success in the future. The only threat of Cyclermate which I want to mention here is the appearance of some competitors in this major for example Halfords which gained success at the moment even there are many cycle shops are closing – outpriced.At the very first, Cyclermate was one of the first company entering this field so it did not have to pay much attention about how to deal with the others competitors. Nevertheless, when the time passed by, many companies have noticed about this potential mar ket so it is time for Cyclermate to try their best to gain trust of customers if they do not want to lose the market to their rivals. 2. Current issues of Cyclermate a. Finance problem After having an overlook about the situation of Cyclermate, the next part of my essay will come closer to all the issues which Cyclermate has met.Firstly, this company has to deal with a huge trouble which comes from finance. As I mentioned before, Cyclermate had to reduce the cost of its product to maintain sales, costs are rising and the overdraft is increase year by year which push the company on the edge of bankruptcy. Besides, according to Ms. Barry the budget for the coming year will further decline and possible trading losses as the consequence of a decline in sales. Moreover, based on the profit statement for the last five years, it is clearly that the finance issue of this company is in danger.To illustrated, the profit retained of the company had decreased significantly compared to the last 4 year (from ? 42734 in 9/30/2009 to ? 12724 in 9/30/2010) and it did not even pay the dividends for shareholder and the cash on hand of Cyclermate in 30/9/2010 was just ? 657; put it in another words, the liquidity of this company was too low and if there was something happen for example the banks did not believe Cyclermate anymore and they wanted their money back, it could not have enough cash to pay for its creditors and had to mortgage its non-current assets; hence, this company will not have enough machine or capital to run its business.In order to help the company overcome this problem, there are some solutions which I am considered will be possible. First, according to the financial statement, even the direct sales units sold was lower than shop sales price, the profit which Cyclermate received from direct sale was much more higher. To be specific, in 9/30/2006, even there were just 743 units sold by direct sales, compared to 1010 units by shop sales, the revenue from the for mer was much more higher ( 743Ãâ€"650 – 1010Ãâ€"390 = â‚ ¬89050).That is to say, by reducing the products sold in shop, Cyclermate can saves and gains more money. Furthermore, in order to maintain the connection which suppliers after reducing the quantity, Cyclermate can negotiate with these suppliers and offer some extra interest rate or commission so that its supplier will still remain display and sell the product of this company. Another solution is that Dai Armstrong should allow Lewis Llewellyn to retire. The reason is that Lewis Llewellyn himself does not willing to work anymore and he usually find his work increasingly tiring and stressful.Besides, although he is one of the first 2 men who established Cyclermate as well as the shareholder of the company, he himself thinks that this company should close down or should be sold for the others UK firms. If employees in Cyclermate know what he is thinking, will they want to work for its workplace anymore; and even they still work for this company, no one can guarantee that they will put 100% of their mind on working. So let Lewis Llewellyn go seem to be the right choice at this time.However, Dai Armstrong must negotiate with Lewis about his share in the company because if he wants his money back; I believe that the capital of Cyclermate will not meet the standard to run its business. In my opinion, the negotiation will success as these two men has a strong relationship and has worked with each other for such a long time so if everything is ok, Cyclermate will save a lot of money for the next coming year. b. Human resources problem There are a number of problems with the human resource of Cyclermate. First of all, it does not have enough staffs to run the business smoothly after expanding.For instance, Dai Armstrong is the chairman of the company and normally, he must takes in charge of operating and controlling the activity of Cyclermate and distributes a particular job for his employees. Nonethe less, owing to the insufficient workforce, Dai himself still makes all the frames, using the original jigs constructed in his garage all those years ago and the inevitable thing is that he is finding it hard to keep up this level of production, both because of the physical demands of the task, and because of his other duties as factory manager and business director; as regards package, it is usually taken by anyone who has spare time.That is to say, it cannot guarantee the productivity of the firm, especially in rush time, when the staffs cannot even meet the quantity requirement of their main duty so how can they handle another. Moreover, at the moment, the company does not have as much skillful staffs as possible in order to maintain the productivity of Cyclermate and Gwyneth Morgan is one of typically example. She usually deals with internal and external enquiries, ata entry, and other routine tasks which is classify as paper work; however the main responsibility of her job is pu rchasing and help company avoiding disruption from stockouts; hence, the work cannot meet the efficiency as expected or Ffred Gregory who is 18 years old and quite new to the process, often has to work overtime to ensure that orders are met on time so that training him has further slowed production recently. Of course, Cyclermate still has some professional employees like Idris Pugh who was recruited from a local cycle repair shop.He is a perfectionist in terms of wheel manufacture and never cause for any complaints but sometimes, the work were late for appointment owing to his old-age and bad healthy. As far as solutions are concerned, I have found out some possible ones which Cyclermate can applies. At the very first, it should re-train the staffs in the company in order to meet the requirement of their field. This train can be hold by the boss himself or skillful employees of Cyclermate so that they can not only save a bundle of money for the company but also have more time to ch at and understand each other, especially newcomers.Moreover, after enrolling in this course, employees should be guaranteed to understand their job clearly and easily to combat with the task given. Another thing which can be done is recruit some new employees for Cyclermate. This is kind of positive way at this time as a new and professional staffs can help the company find out a new and creative way to complete the task and maintain the requirement quantity and quality of the company. However, I do not highly recommend this solution as the finance issue of the company is in danger and it is hard for Cyclermate to hire some new employees at this time. c. Operation problemThe very last problem of Cyclermate which I want to mention here is Operation ones. First of all, the leader of the company does not have a clear distribution for each staff which leads to the unstable in their job and costs a low productivity for such a long time. To be illustrated, Dai Armstrong has to take charge of many different responsibilities included the chairman of Cyclermate, the worker who makes all the frames of products and even a packaged man. With a bunch of workloads which have been handled like that, how can this man has time to think about a new strategy, a new plan to improve the current situation of the company?And the others workers, with a number of things have been done in a short time, how can they guarantee that no mistake will be made, not mention about some majors are not their professional field. Besides, as far as I concerned, before establishing Cyclermate, Lewis was just on his way up from apprentice to be chief mill engineer while Dai had progressed from â€Å"office boy† to a senior marketing post. That is to say, with this current position, how can they have enough management skills to lead the other in the company?Last but not least, the problem even come from the top manager of the company which is Lewis and Dai who share management of the business, though by nature of their differing roles, Lewis tends to focus more on production issues and Dai on external relations. Like people have said â€Å" 1 dat khong the co 2 vua†, with a different role like that, they cannot guide their employees to a single task which is break the basic rules of a corporation; consequently, Cyclermate’s staffs do not know what to concentrate on and lack of clear vision about the goal of what they have to do.When it comes to the solution, I believe that there are some ways which can help Cyclermate improve the current situation of this company. Firstly, Dai Armstrong has to set down a clear distribution for each position in the company. He has to reduce the multi – responsibility among his workers so that they can focus 100% on their current job and maintain the productivity of each process.Secondly, as I mentioned above, If Cyclermate accepts the retirement of Lewis Llewellyn, it can concentrates deeply on a single task at the mom ent for example maintain the productivity or improve the quality of its products, etc which is clear so that employees will know what they have to do to meet the goal of the company. Lastly, in order to save money, save materials and still supply enough products to meet the need of customers, Cyclermate itself should considers to apply JIT method on produce the products.This method was described by Henry Ford in his book as a production model in which items are created to meet demand, not created in surplus or in advance of need. I absolutely think that this solution will fit the Cyclermate’s situation well, especially when it has a huge issue with finance; Thus, by calculating an exact figure of materials has been and should be used, this company can avoid the waste associated with overproduction, waiting and excess inventory. In order to support for this method, I highly recommend the company to use Kanban cards to make JIT become more efficiency. As far as I oncerned, this Kanban card is like a label which contained a number of information about products such as name, number of units and a variety of other news that clearly conveys what must be done. By applying this card in manufacturing, especially in the situation of Cyclermate when the work of each staffs does not fix, it will help employees to control and identify which should be done next by analyze the color of Kanban cards for instance the white or green Kanban cards mean that a product do not have to manufacture yet, the yellow ones mean that employees should start producing a goods immediately, etc.III. Recommendation After analyzing the case study about Cyclermate, I want to note down briefly about some potential routes which this company can follow to reach to the market. First of all, as far as I am concerned, Cyclermate has a good supplied channel who ready to advertise and sell the product of the company and Word of Mouth method seems to bring a positive chance for it to attract custom ers.That is to say, developing this supplied channel can help Cyclermate increase its image on the eyes of customers and there are many others retailers which have not been asked about selling Cyclermate’s products so this a one of a best way for this company to expand its business. Another striking feature here is that it can focus on direct sale to sell its product to buyers. This method can help the company reduce the price paid for middleman and furthermore, Cyclermate can take this chance as an opportunity to interact with customers in order to understand and identify what they really want and need.Lastly, with the significant develop of technology, marketing is now become more and more important within any corporation around the world to approach and attract buyers. However, this way seems to be forgotten by Cyclermate indicated in the meeting’s report that the marketing activity of this company in recent year is quite rare. As the consequence, Cyclermate can spe nd some of the money saved from firing Lewis Llewellyn and profit retained to improve this activity to rise up its status and advertise a great hand-made bicycle to customers. IV. ConclusionCyclermate Ltd, in my opinion, is a brave company as it does not follow the trend of current market but identifying and having its own idea to manufacture a unique product, even in a harsh time like this. However, it has met a number of issues when trying to operate its business which I have mentioned above. In the future, there will be a lot of difficulties which this company has to handle. Having said that, with all the ideas and solutions which I have noted down in my essay, I strongly believe that it is possible for Cyclermate to recover and strengthen as it did in the past.