Wednesday, March 18, 2020

International Marketing Plan for Tata Nano

International Marketing Plan for Tata Nano The aim of this case study is to develop an international marketing plan for ‘Tata Nano’ the world’s lowest price car with lowest fuel consumption produced by the Tata Motors of India. To carry out the marketing plan, this report will provide historical background and cultural background of host country and give a brief overview of the company and economic analysis of home country India including an export diagnosis of the company.Advertising We will write a custom essay sample on International Marketing Plan for Tata Nano specifically for you for only $16.05 $11/page Learn More Background of the Company TSL (2011) reported that the Tata group stated it journey in 1868 and now operating in eighty countries with ninety different subsidiaries with a market capitalization of US$ 100.39 billion while its 57% of the revenue comes from export. Donlan (2005) mentioned that in 2003, the hundred and forty years old group of companies announced in the Geneva Motor Show that Tata Motors would produce world’s cheapest car ’Tata- Nano’. In 2006, Tata Motors started to establish its Nano plant at Singur of West Bengal in India by accruing 1,000 acres of land, which was disturbed by the political violence of farmers who were not willing to give agricultural land for Nano plant. After trilateral negotiation with the government political parties and entrepreneurs Tata Nano successfully came in the market in March 2009 and the market response were more than expectation due to the world’s cheapest car with highest energy efficiency both in home and abroad. However, this brand is popularly known as a raise- engine, cheap, four- passenger city automobile and it is generally a silver bodied car. Some common features of this product include single windscreen wiper, three pull nets on wheels, single mirror without CD player or radio along with airbags and power steering and 623cc engine, etc. The Nano has three basic models offering distinct patterns of additional values regarding without additional benefits, with air condition and with power windows along with air condition. According to the annual report 2010 of this company, its outer layout has designed by Italian Institute of Development in Automotive Engineering, and its engine configurations involve 2 cylinder petrol, value of Motronic engine, 35 PS power, 48 N.m Torque and the compression ratio of 9:5:1. Regarding suspension, brakes and tires, the car has 180 mm of front and 180 mm of rear brake, 1315 mm of rear and 1325 mm of from track and finally, McPherson strut of front and free coil spring of rear suspension while its wheels are sized as 12 inches. It has the average speed of 60 km/h with the maximum limit of 105 km/h a full efficiency is 23.6 km per liter; however, it is a rear wheel drive car that has 4 speeds manual spreads with automatic rack and pinion steering with 4 meters of revolving radius. Various entities supply i ts multiple parts among them some are Bosch, Caparo, Delphi, Ficosa, GKN, Mahle, TRW, Visteon and AG etc. (Tata Nano, 2011)Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More PEST analysis The PEST analysis of Tata Nano for US market is shown below- Political factors: USA is the country that has relatively stable government with specific and advantageous business policies for foreign companies, like- Tata. Also the country’s local government already has several trading relations with various Indian vendors which would leverage the introduction of Nano into that country (USA Forum, 2011). Economic factors: The overall economic condition of USA is very well and for this, it is considered the strongest economy in the world. Thus, Tata needs to consider a number of integral factors, like- interest rates, inflation and unemployment level and GDP etc. because those factors can posit ively or negatively affect the sales and profitability from the product (USA Forum, 2011). Socio- cultural factors: It incorporates prime religion, local attitude towards imported products, projected influence of language, recreation and leisure pattern of people, environmental concern and the practice of green marketing, family pattern and life cycle etc. (USA Forum, 2011). Technological factors: One of the prime characteristics of US consumers is that they are highly technologically advanced than many other consumers of other parts of the world. So, this factor includes customer affordability to enjoy new technology, habituation of using online distribution channel and the potential to use technology more than product differentiation as providing customer service or promotion (USA Forum, 2011). Relevant History Library of Congress (2004) pointed out that India is one of the Asian emerging economies that became independent in 1947 coming out from British colonial rule more than a t wo centuries, the country upholds multi party federal democratic system based on secularism and social justice. In context of population, India is the world’s prevalent democratic country that has successfully evidenced balance of power between the central and state government with rich diversity of nations while the country huge political unrest with a number of isolation movements. Kujur (2008) mentioned that the remarkable political and social unrest of India has aligned with underground political organizations like Marxist-Leninist Communist Party of India, People’s War Group, Maoist Communist Centre and Naxal Movement all these go with arms straggle that seriously hampered the smooth investment environment of country.Advertising We will write a custom essay sample on International Marketing Plan for Tata Nano specifically for you for only $16.05 $11/page Learn More The government and law enforcement agencies have to engage special effort for the unification of the country and to protect terrorist trends of communist groups and liberation activists. The major political parties who are in democratic practice are Congress- that carried out independence, BJP and Left Alliances though there are dozens of regional parties in every state with strong institutional infrastructure to protect isolation or so called liberation movement. With far above the ground religion diversity such as Hindu, Muslim, Buddha, and Christen, Indian political system has ensured human right, freedom of speech, liberty of media, and nourishing scholars to face the challenger of globalization though there are enough evidence of emergency and presidential rule in some provinces. In the province West Bengal where the Tata Nano plant situated, has ruled by left alliance under the leadership of communist party for more than four decades, and the Tata Motors has to face serious political disturbance with its Nano project though the government has strong support for Tata. Population IndexMundi (2011) forecasted that the total population of India is approximately 1,189,172,906 in 2011 while it was 1,173,108,018 in 2010. Initially, the population growth rate was high, but not this rate is reducing dramatically, for instance, in 2004 and 2007, it was 2.91 % and 3.15% approximately and now the growth rate is 1.39%. Figure 1: Total population of India from 2003 to 2011 Source: IndexMundi (2011)Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Legal System India is a promising market to the present corporate houses and the legal system of India is very flexible to the multinationals and new entrants as the government tries to ensure the highest possible business-friendly environment to the firms, as a result, the policy makers support to increase Foreign Direct Investments. However, it is notable that commercial legislation regarding labor and environmental concerns are theoretically very strong, but practically practice of labor law and ethical codes is not too standard in terms of remuneration, workplace safety and compensation issues. Distribution System For distributing Nano in the USA, the marketer can import the ‘easy- to- assemble’ kits from their home country and then the products should assemble at certain locations. After that, the company should redistribute the finished cars to the various showrooms throughout the country and fifty sales centers can be opened for this purpose (TNN, 2011). Gross Na tional Product (GNP) of India: ICAI (2008) pointed out that Indian GNP[1] calculated by adding net factor incomes from foreign counties with GDP[2] and subtracting the foreigners income from India while it is equated as GNP = GDP + NFIA [3]; NFIA indicates the balance of export earning and import spending. In this process, service rendered for free of cost are not taken into account of GNP, at the same time capital gains and losses are also dropped from this calculation as they are not the consequence of concurrent economic activities of that year. During the 10th five years plan India targeted 8% GNP growth but in practically the country has gained 7.6 % while the country pointed to gain 8.5 %. Zaman et al (2008) added that there is no particular standard to identify the gross national income in India, it has incorporated a number of factors, while the economic growth of the country are benchmarking with GNP growth, per capita income, renovation with multidimensional course of acti on connecting the restructuring and progress of entire economy with social systems. At the same time in Indian, the improvements of incomes and outputs are characteristically engross with fundamental changes in institutional infrastructure, education, social and political alignments, different ethic groups along with administrative structure. The export data of Indian statistically demonstrates noteworthy positive signs and its export are in intensifying with upper trend that point toward potency of the economy while the FDI[4] inflow in the country is a vital concern of the economy that has presented statistically momentous progress. The Indian GNP from 1990 to 2006 has demonstrated in the following table as follow- Figure 2: Indian GNP Table 1970 – 2006 Source: Zaman et al (2008) WUSTL (2011) pointed out that the Indian economy is the world’s eleventh largest economy with GNP of US$ 2400 billion in context of purchasing power parity while the agriculture sector cont ributes 25.3 %, industrial production donates 26.2 %, manufacturing segment produces 15.1 %, and rest 33.4 % contributed by the service sector. For the country has been progressing in its GNP growth at a targeted growth of 8 % and the driving force laid behind for such achievement are the democratic society with low cost labor, vibrant capital market, and liberalized capital market and open window for foreign direct investment. Principal Industrial Sector of India The raising sectors of India those are aimed to compete in the global market are as biotechnology, pharmaceutical, petrochemical, iron, steel, chemicals, vehicles, entertainment, alternative energy resources, software, and information technology and the country already proved its successful footstep for IT industry while major multinational companies are deeply concerned with the Indian market. WUSTL (2011) also added that the major growth driver of Indian economy and the biggest asset for future growth is its competent pe ople while the population of the country has been growing at 1.8% per year with increasing education rate and the domestic customer market is growing 5 to 10 percent per annum. Principal Exports Johansson (2008) stated that exporting means the promotion and direct sells of locally manufactured products in the foreign market and it is a well-developed and conventional form of strategy to capture international markets. As a result, export is the core basis of revenue for the India’s financial system because it generates huge amount of money from this segment and earning from exports is increasing per year, for instance, India’s net exports earning was approximately $168.2 billion in 2010 whereas economists estimate $201 billion in current year (IndexMundi, 2010). However, the following figure demonstrates the actual figure of exports from 2003 to 2011 Fiscal Year Total Imports ($billion) Rank 2003 44.50 32 2004 57.24 31 2005 69.18 33 2006 76.23 33 2007 112. 00 29 2008 151.30 25 2009 176.40 25 2010 168.20 21 2011 201.00 22 Figure 3: Net Exports Source: IndexMundi (2011) Trade Deficits Library of Congress (2004) India’s negative trade balance has grown gradually from last three decades such as in 2010 exports were $168.20 billion and imports were $253.90 billion, resultant Trade Deficits were of $85.7 billion whereas Indexmundi (2011) estimated that this negative balance of trade would be more than $126 billion. Figure 4: Surplus or Trade Deficits Source: Trading Economics (2011) Cultural Analysis Education and literacy rates: The US government is basically responsible for providing education with three sectors of funds as state, federal and local. More than 77% people have completed their educational life from kindergarten to graduation level. Among the adults, more than 85% have finished their high school level and 27% have completed bachelor’s degree or more. This sophisticated educational background of the c ountry is an optimistic factor for Nano since education assists knowledge and such knowledge would help US customers to understand the technical and general superiority of the car. For example, the white color car purchasers would be highly conscious about the safety issue of a car rather than any other configurations. In this regard, Nano would be able to gain much of their attention because of its careful safety arrangements (USA Forum, 2011). Social classes In USA, social class is a mixture of educational achievement, occupational and income sovereignty that influences its culture highly. In general, there are three layers of social classes as high, medium and low. The upper section involves in luxury consumptions and leisure. The middle class is commonly identified as the educated class having some key values. Although their budget is limited, they often have more opportunity to enjoy more travels and vacation. They want to have such consumptions which can be obtained at lowest price and yield in highest return. They are not at economy level but they are to maintain economy at their living. The working class is the top sufferer of economic vulnerability. This class and many middle class individuals frequently face job downsize. Moreover, the US workforce is highly productive as the average per week working hour is above 40 hours (USA Forum, 2011). In these circumstances, the Nano can be offered for the middle and especially the low class segment of US society. Since the car is positioned as an affordable item for all, this segment can easily find it suitable for both purchase and usage. The middle class would also prefer it by considering the economy along with the competitive advantages offered by the Nano (USA Forum, 2011). Belief system Most of the Americans commonly believe in equal opportunity for all in the society. Here, the concept of individuality and self- expression are highly emphasized. Competition is also a common thought which is practiced b y progressive attitude for improvement. For them, tradition is less valuable as they trust in rationality rather than emotion for taking any decision. This attitude is motivating for Nano as if they find it better than other American cars; they would be interested for buying this car. The integral parts and other value added features of Nano would be able to attract the rational sense of satisfaction of local customers (Virtual USA, 2011). Language Above 97% of Americans speak in English although there are above 300 native languages. Some other commonly used native languages are Spanish, Indo- European, Pacific Islander and Asian languages etc. The American dialect is called American English which has 4 major divisions involving south, north- eastern, mid- western and inland north. Both local and immigrants use English as a common language that acts as the symbol of cultural integration and can also influence the performance of Nano. Language can act as common form of promotional de vice for Nano. For example, one customer can express his/ her positive feeling about the car to another one by using language and thus form viral marketing (USA Forum, 2011). Living conditions and leisure Housing is a prime factor of living conditions. In urban areas of USA, most of the families live in semi- attached houses and apartments. Existence of dwelling houses, business units, shopping malls and educational institutes as a single unit is also common here. Urban dwellers also need to have more travel by mass transportation while children are familiar for walking or driving bicycle than rural areas. Life is comparatively busy and hasty in urban areas rather than rural ones. Thus, the small, city car image of Nano would be highly meaningful for accelerating such pattern of busy life. Since having a personal transport is very essential regarding the American living standard, the evolvement of Nano can satisfy such requirement with its size, engine and speed etc. (Virtual USA, 2 011). The Americans undertake a number of activities during their weekly holidays and vacations. Around the year, outdoor is the most common form of enjoying leisure. Some other forms of holiday activities are hiking, sailing, skiing, camping and mount riding etc. Participation of professional and non- professional sports is equally well- known there. The role of a private car is significant for enjoying that different types of leisure tasks, especially for outdoor. For many small families having the maximum members of 4 and single college or university students who want to spend their weekend at hill top, river side or jungle camp, Tata Nano would be the perfect choice regarding the overall size, passenger capacity and longevity of the car. Its 4 wheel driving condition would also be preferred by those who want to pass their vacation on rough hilly areas (USA Forum, 2011). Music and folklore Among a number of versions, American young generations and teens basically prefer rocking a nd cheerful music. This is particularly true when they go for a long drive alone or accompanied by some friends or simply enjoy a party. Folklore has also various dimensions regarding patriotism or fascination for cultural values which can be a symbol of expressive culture. Since the choice of music and orientation of folklore can significantly affect customer’s preference and attitude towards a product, both those factors would be notable for the US market expression of Nano (Virtual USA, 2011). Others There are some other cultural elements that should be considered for Tata Nano in USA. Such as- Family patterns: Divorce is a common phenomenon of American culture. Almost all the Americans commonly face this incident at least once in their life. For this, the trend of living in a single father or single mother family is increasing. Many also remarry; having kids and then continues a nuclear family. Thus, the specialization and features of Nano are adjustable for meeting the n eed of such families. Moreover, its low price offer would also be attractive towards those families (USA Forum, 2011). Fashion: Americans believe in flexibility and informality as a part of their fashion whether it is for clothing, eating, traveling or driving. This simplicity would be effective for expanding the market of Nano as the car integrates most of the mandatory parts and eliminates several common but less necessary items, like- CD player (Virtual USA, 2011). Culture of automobiles: In USA, the evolvement of sub- urban areas and the need of working class for communicating with cities are accelerating the need of having a private car. In almost all the states of USA, people have their own automobiles whether the brand or price would be. So, in this situation, the Nano poses a wide market potential since the car can be offered for a larger group of people for whom it is one of their primary needs (USA Forum, 2011). Evaluation of the Possible Success of Product The growth rate of the world economy declined from 5.2% in 2007 to 3.2% in 2008 because of global financial downturn and this crisis has started from the US market. The impact of this economic downturn was severe in this market as many companies has collapsed or insolvent due to liquidity crisis of Banks, corporate frauds or other financial management problems. On the other hand, Banks had not interested to provide car loan because of increasing number of unemployment rate and unstable market condition, which increased the risk of failure to pay back. As a result, it was difficult for the middle class people to purchase large and luxuries cars within their budget and this force creates the opportunity for the small car manufactures to enter the developed countries with their low cost products. However, Ruddick (2009) in The Telegraph reported that the largest automobile market has fallen dramatically due to recessionary pressure regarding unstable oil prices and lower employment ratio. In addition , market leader General Motors has also experienced unfortunate loss as in 2009, GM’s sales have been lowered by 30% than 2008 and this company had fired international white- collar payroll from 73000 to 63000 with downsizing of 3400 US employees (General Motors, 2010). However, the market position of GM has declined with the overall market demand after 2008, but it is important to mention that Toyota and other companies have already stared to manufacture small cars in order to create market demand for small sized products and the customers have showed positive response. On the other hand, IFC (2011) reported that the government of US is not interested to establish foreign companies by FDI, but this crisis must influence the government to reduce tax for foreign companies and flexible entry requirements. As a result, it can assume that the market would be profitable for Tata Nano as the market share of these Japanese companies is increasing in this market. Characteristics of t he Possible Market The new entrants enjoy huge facilities and greater flexibility in this market because it is the greatest and most technologically dominant economy in the globe. According to the report of IFC (2011) and Indexmundi (2011), this is the right place for developing products or expanding existing business though newcomers have to face high competition with other entry barriers, but the per capita GDP US$47,400 would minimize these risks. Indexmundi (2011) estimated that more that 12% people of US below poverty line and more than 4.43% Asian migrants who have straggle to sustain in this country. They also need transportation facilities, but they have not enough money to fulfill their demand, so, they can purchase Tata Nano as it is a comfortable, safe, well-weathered, low emission, and high fuel efficient model. On the other hand, Indexmundi (2011) reported that the unemployment rate is increasing day-by-day, for instance, present unemployment rate of the US is 9.3%, whi ch was 5.8% in 2003. However, increase rate of unemployment influences the current market position and purchasing power of customers in many ways, such as, bank would not ensure large fund for car. At the same time, middle class and higher class people would like to purchase luxury cars, but there are many small families and single person who also buy small car for their regular uses or reduce fuel costs. However, there are many companies (like McDonalds, KFC, Fedex, and so on) those offer home delivery services and these companies require transportation system, therefore, local multinational companies can be potential target market of Tata Nano. Description and Characteristics of Competition Tata Motors has to compete with numerous direct and indirect auto manufacturers though it is one of the most prominent and the largest markets in the world. However, this company may face hard competition from some other alternative transportation besides large and small, for instance, a signif icant part of the community use public transportation like bus, railways, trams and so on. According to the annual report 2010 of Tata, international business of the company had adversely affected by the financial crisis in the main markets, but its’ integrate market share of small vehicle sector has increased by 13.3% and developed brand image in global market. However, this brand has to face instance competition in local market as many companies like Maruti Suzuki Ltd and Bajaj Auto produce small cars, but Tata Nano has to compete with other multinational like General Motors, Hyundai, and Toyota, which are now manufacturing small cars to compete with Nano to attract middle class customers (Tata Nano, 2011). Tata Nano’s Distribution in the US Market Noronha (2005) pointed out that Tata Group has long integration with US market from early 1900s with a huge segment of product and services while the company has enlisted in the New York Stock Exchange with eighty offices all over the USA with ten thousand employments, thus Tata Motors would get some competitive advantage to establish distribution channel for Tata Nano. Tata Nano being the world’s lowest price car, has a great market demand in rural and urban low-income level people under the current recessionary economy, thus it would be suitable for the company to adopt free distribution channel rather than engaging territorial distributor. The company would first establish at least five sales and service centre covering the US market and all car distributors of US market arte entitled to collect Tata Nano from these points for their customers. Every distributor would facilitate with handsome commission package depending on their sales volume. The Economic Times (2011) reported that the Tata Motors has already gained a good customer base by purchasing British Auto Company for its Jaguar Land Rover that has an existing market in the US territory. To distributing Tata Nano, the company has the opportunity to involve the distribution channel of Jaguar Land Rover that would provide a strong distribution with less effort. It has predicted from the car dealer study that such a low price car with low fuels consumption – 54 miles for each gallon of gas would be preferable for the US market even if the price stands at US$ 10,000 and a large number of dealers are interested to act as Tata Nano’s distributor. Advertising, Promotion and Media used to communicate Product Tata Motors Ltd is going to undertake several strategic methods in order to boost its sales-configuration in existing market as well as to aware people of prospective market about the features of the products. However, its advertising strategies are now focusing on gratifying and impressing the people who put across abhorrence over Tata’ cars, but the advertising policy for the US market should different from existing market to create market demand with strong market position. Therefore, the ma rketer of Tata Nano Brand should consider effective media and promotional strategies to communicate with the customers to develop loyal customer base in the US small car market. However, the marketer will arrange integrated marketing communications (IMC) campaign to aware people about the advantage of this brand to save the environment from air pollution and to get economic benefit in this recessionary period. As the promotional strategy of the Tata Motors varies in accordance with changing consumer attitudes, demands, and other external factors, the marketer should mainly consider the environmental, socio-cultural and economical factors of the US market in order to arrange IMC campaign and other promotional activities. Media Plan Key Features Web site Initially, the marketers of Tata Nano will require to find out the web designers or programmers to design an excellent Website with integration of latest software because the US customer mostly collect information from the web co ntent and they also ask feedback by using the company’s website. As a result, they will highlight the main features of the model, key advantage to purchase this car, environmental concern, materials, safety measures and so on; You Tube Nowadays, TV. YouTube was launched in the year of 2005 as a video sharing website which allows users to download, upload, and view as well as share videos, but it is now the most popular and successful website of video sharing service in the cyber world. In addition, YouTube was providing over two billion videos per day, which is almost twice as many as the prime-time audience of all three main US television networks together; therefore, it could replace the traditional television and become the new television Social Networking Site As social networking sites contributed significantly over Tata’s marketing activities, it will use social networking sites like Facebook, Flickr, Twitter, and Linkedin in order to attract more customers i n the US zone; Billboard and Hoardings these can be every powerful media if the company can utilize this media by conducting proper market research Television Advertising is a type of communication that continuously imposes into people’s daily lives though people do not pay much attention to it, its form of persuasion, and of the extent how it manipulates the culture. At the same time, the Therefore, the marketer will use this media as one of the most effective sources to create customer attention; Radio The cost of advertisement in radio is lower than television, therefore, Tata Motors can also use this media to advertise its Tata Nano Brand Search Engine link in Google, yahoo, MSN and other sites are useful promotional tools for Tata Motors; Newspaper Advertisement in the newspaper is also effective tools Table 1: Media Plan for Tata Nano in the US market Source: Self generated Price Range for Competing Products Conklin (2005) reported that the entry of Japanes e auto makers like Toyota, Honda and Nisan have already reduced the market share of the General Motors, and Volkswagen by creating strong customer base in the US car market by using low cost strategies. At the same time, Tata Nano is the cheapest car brand in the world, which has long experience to enter new market and capture large share within short period using different strategies beside pricing strategy. However, different company setup the price range considering different factors such as market competition, production costs, direct margin, purchasing power of the customers and many other factors. As Tata Nano is marketed with lowest price structure, it can assume that it will ask cheapest price in the US market though the price would be comparatively higher than the price of other Asian countries. However, the rationale behind this pricing strategy would be included the extra costs to incorporate new features to decrease CO2 emissions and increase the safety measure in the mo del of Tata Nano. According to the annual report 2010 of Tata Motors, the price of this brand is only $2500 for international market, but this price changes considering the specific requirements of the markets and external environment, such as, the price of Tata Nano is higher in EU zone. However, Ramesh (2009) reported in The Guardian that the company would develop the European Nano to fulfill the requirements of the USA market in terms of higher safety standards includes airbags and antilock brakes. As a result, Tata Nano will set up the price of this brand considering EU market where the additional features make this brand more expensive. However, the company can ask $6,000 to $6500 to introduce this brand in the US market because Ramesh (2009) reported it has already asked more than â‚ ¤4000 in the EU market. Market Size and Sales Estimates According to the data of the World Street Journal, the US market is really potential to the small and Eco friendly car makers. However, W SJ (2011) reported that about 546,687 cars were sold in the US market in May 2011, among these cars 196,498 were small sized. However, it is important to note that the prospect of small cars is better than luxury cars or large cars in this market because the auto makers aggregate sale volume was only 73,566 luxury cars and 5,962 large cars in May 2011 (WSJ, 2011). Considering this fact, it can be estimated that the annual sale of small cars would be approximately 2357616 units. However, total car market size is also depend on the On the other hand, the customer behavior of the US market has changed due to the global financial crisis and development of the consciousness about the difficulties of large cars. The recessionary impacts derived the customers to purchase cars at low price and this force influenced small car producers to enter this market. Therefore, it would be easy to Tata Motors to capture large market share of the US car markets with their Tata Nano product. As this com pany needs to invest large amount of fund to enter this market, it is important to estimate approximate sales volume in order to avoid market risks. However, this report suggests that Tata Motors should enter the US market with small sales target at the initial stage, for instance, it sales target should 10000 units per month or 120000 units per year. The actual car sales of first year will direct the company to take further step to increase sales volume in this market. Recommendations From the above discussion, Tata Motors should enter the US market with Tata Nano brand as it has designed and manufactured in such way which assures the low budget customers to purchase a better quality, small size and fashionable car. On the other hand, the biggest competitive advantage of Nano is its cost cutting features would help the company to create market in the post-recessionary period. Since the company is thinking to renovate the electric version of the car, it is also possible that such el ectric version would become the least expensive electric automobile with a range of 130 km and lithium- ion batteries. In addition, the marketers of Tata think that the Nano is safe as the car incorporates some especial features, such as, side arm mirror for passenger, no airbags and wrinkle zone. As the US people highly concern on safety issue, all of these criteria help to have a safe driving at Nano than any other forms of two- wheel cars. Reference List Conklin, D. C. (2005) General Motors: Acting Strategically. Ortario: Richard Ivey School of Business. Donlan, T. (2005). Recent History of Tata Motors (TTM). Retrieved from http://seekingalpha.com/article/2486-recent-history-of-tata-motors-ttm General Motors (2010) Annual Report 2010 of General Motors Company. Retrieved from http://investor.gm.com/pdfs/10-K.pdf ICAI (2008) National Income India: Concept and Measurement. Retrieved from icai.org/resource_file/16788National_Income_india.pdf IFC (2011) United States: Doing Business 2 011 Making a Difference for Entrepreneurs. Retrieved from doingbusiness.org/~/media/fpdkm/doing%20business/documents/profiles/country/db11/usa.pdf Indexmundi (2011) Country profile of India. Retrieved from indexmundi.com/india/ Indexmundi (2011) United States Population below poverty line. Retrieved from indexmundi.com/united_states/population_below_poverty_line.html Kujur, R. (2008). Naxal Movement in India: A Profile. Retrieved from http://kms1.isn.ethz.ch/serviceengine/Files/ISN/92603/ipublicationdocument_singledocument/ec30cde7-82ac-42a3-82ac-55ddfe7144fe/en/RP15-Kujur-Naxal.pdf Library of Congress (2004) Country profile India. Retrieved from http://lcweb2.loc.gov/frd/cs/profiles/India.pdf Noronha, C. (2005) Good tidings. Retrieved from tata.com/company/Articles/inside.aspx?artid=e0L3MDPhEIQ= Ramesh, R. (2009) Tata Nano: Worlds cheapest car is Indias answer for cash-strapped drivers. The Guardian. Retrieved from guardian.co.uk/business/2009/mar/24/tata-nano-worlds-cheapest-car Tata Nano (2011). Annual Report 2010 of Tata Nano. Retrieved from tatamotors.com/investors/annualreports-pdf/Annual-Report-2009.pdf The Economic Times (2011) Tata Motors puts Jaguar, Land Rover back on track. Retrieved from http://articles.economictimes.indiatimes.com/2011-06-01/news/29608472_1_jlr-unit-tata-motors-british-luxury-marques-jaguar Trading Economics (2011) India Balance of Trade. Retrieved from tradingeconomics.com/india/balance-of-trade TSL (2011) Leadership with trust. Retrieved from tata.com/aboutus/sub_index.aspx?sectid=8hOk5Qq3EfQ= USA Forum. (2011). United States of America. Retrieved from everyculture.com/To-Z/United-States-of-America.html Virtual USA. (2011). USA Culture. Retrieved from virtualamericas.net/usa/culture/ WSJ. (2011) Sales and Share of Total Market by Manufacturer. Retrieved from http://online.wsj.com/mdc/public/page/2_3022-autosales.html WUSTL. (2011). Doing Business in India the Indian way. Retrieved from http://apps.olin.wustl.edu/orgs/ClubDown loads/India.ppt Zaman, K. Aman, Q. Farid, G. (2008). Key Indicators of Economic Development in Pakistan and India: A Comparative Study. Retrieved from eurojournals.com/ejefas_25_06.pdf Footnotes Gross National Product Gross Domestic Product Net Factor Income from Abroad Foreign Direct Investment

Monday, March 2, 2020

A Quiz About Compressing Accordion Sentences

A Quiz About Compressing Accordion Sentences A Quiz About Compressing Accordion Sentences A Quiz About Compressing Accordion Sentences By Mark Nichol Brisk, lively writing requires attending to phrasing that slows readers down and or trips them up. Be vigilant about finding ways to make sentences less wordy and more direct. Firm up these five flabby sentences, and compare your revisions with mine: 1. â€Å"The kit includes a set of five food containers, and they are dishwasher safe.† Insert the key information in the second clause of this sentence as a phrasal adjective preceding the subject: â€Å"The kit includes a set of five dishwasher-safe food containers.† 2. â€Å"In 1995, he published a book called Bowling Alone, which introduced the term ‘social capital’ into our nation’s vocabulary.† Shift the focus from the author’s act of publishing the book to the result of the publication by deleting compacting the phrase â€Å"he published a book called† to â€Å"his book,† then delete the comma and which: â€Å"In 1995, his book Bowling Alone introduced the term ‘social capital’ into our nation’s vocabulary.† (Use this solution cautiously, as such a shift in focus may cause the passage to veer from fidelity to the author’s intent.) 3. â€Å"The film was commissioned by the US Treasury Department, and it was troubled from the beginning.† When a sentence includes more than one form of the verb phrase â€Å"to be† is, was, were, and the like discover a way to eliminate at least one of them; in this case, alter what follows was in the first clause to a subordinate clause, and jettison the conjunction: â€Å"The film, commissioned by the U.S. Treasury Department, was troubled from the beginning.† (Look for opportunities in such cases to replace not one but both â€Å"to be† verbs, which are inferior in impact to more vivid verbs doing so may encourage you to be more specific, too: â€Å"The film, commissioned by the U.S. Treasury Department, suffered from bureaucratic interference from the beginning.†) 4. â€Å"Smith is president of the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and frequently represents evangelicals in the media.† This sentence is improved in the same fashion as the previous one, with the additional improvement of replacing the verbose â€Å"part of the whole† construction with a â€Å"whole’s part† revision: â€Å"Smith, president of the Southern Baptist Convention’s Ethics and Religious Liberty Commission, frequently represents evangelicals in the media.† (Take care, however, that this more concentrated restructuring is not more ponderous than the original phrasing.) 5. â€Å"My cousin, who is employed as an epidemiologist at the Centers for Disease Control and Prevention, claims that a scenario similar to that one could occur if the circumstances were right.† Delete the redundant indicators that the writer’s cousin is a person (who) and is employed at the place of employment, and tighten the rest of the sentence by converting phrases that contain an adjective and follow a noun into adjectives preceding the nouns and modifying them on their own: â€Å"My cousin, an epidemiologist at the Centers for Disease Control and Prevention, claims that a similar scenario could occur under the right circumstances.† Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Grammar category, check our popular posts, or choose a related post below:50 Handy Expressions About HandsHow to Pronounce MobileAdverbs and Hyphens

Saturday, February 15, 2020

Deductive and Inductive Arguments Essay Example | Topics and Well Written Essays - 250 words

Deductive and Inductive Arguments - Essay Example A deductive argument is said to be unsound if its premises are not logically correct, but then they can be founded upon to form a correct conclusion. For instance, the following premises; Mary is 37 years old, Mary is caring then the conclusion from the premises is Mary is a mother. The argument is unsound since the premises are generalized and thus will not form a good basis for making an informed conclusion. The premises since they are general in nature cannot be said to be logically correct since they are not specific to be based for making informed conclusions hence the argument is unsound. Inductive premises are not always correct the person in the argument will take them as they are to influence a certain conclusion that is desirable (Iep.utm.edu). The nature of the premises in inductive arguments determines whether the overall conclusion of the argument is weak or strong. For instance; the policemen said Peter committed the murder, so Peter is the murderer. This argument is weak because its based on a section of the overall evidence and thus, cannot be depended upon. On the other hand, if we have premises like these; eyewitnesses said they saw Peter commit the murder, fingerprint evidence from the body of the diseased together with the weapon are identical to Peter’s and Peter confessed to the police to have committed the act, so Peter committed the murder. The argument above is strong since it incorporates a number of evidence that precisely implicates Peter to the murder beyond reasonable doubt. Therefore, from the aforementioned definitions and illustrations it is evident that the deductive arguments are more compelling than the inductive arguments because their conclusion are correctly premised logically and morally as opposed to the inductive arguments, which are often incorrect and depend upon the perception or intention of the individuals to form a conclusion that

Sunday, February 2, 2020

Online blog research Essay Example | Topics and Well Written Essays - 1750 words

Online blog research - Essay Example These considerations carry even more weight when we explore the factors that will determine a successful website that markets toys. The complexity of marketing toys on the Internet begins with the target audience. The website offering toys will be visited by young children, their parents, and grandparents. There will be vast differences in Internet capability and a wide variety of tastes. The site should be simple enough to navigate for a 10-year-old child, yet offer the sense of security and trust required for an adult to feel comfortable. The test of 3 websites offered by major toy retailers showed some important differences in usability across age groups. To begin the investigation, we attempted to shop for two toys on etoys.com, toysrus.com, and fatbraintoys.com. These sites were selected by their prominence on the major search engines, which indicate they are probably most selected by consumers. While toysrus.com and etoys.com are for general toys, fatbraintoys.com has a niche market for educational toys. We looked for an erector set for a ten-year-old boy, and a Barbie doll for a ten-year-old girl. While toysrus.com used age brackets, such as 3-4 and 5-7 years of age, etoys.com and fatbraintoys.com listed each age below 8 separately. ... Shopping by department fared no better. On toysrus.com, we looked for the erector set under building sets and retrieved hundreds of different toys. Narrowing the search by age the results were still overwhelming. Simply shopping for an erector set was not realistic. Only on fatbraintoys.com was the erector set a separate category. However, the search for a Barbie doll was much simpler. ToysRUs and etoys had a listing for 'characters' and 'brand', and Barbie was listed as a main category of toy. In fact, toysrus.com had 50 items listed under the Barbie category priced from $10 to $200. The Barbie department at etoys.com had over 100 Barbie items. The site operated by fatbraintoys did not carry a Barbie doll. When the search was narrowed to the 2008 Holiday Barbie doll, toysrus.com and etoys.com had the doll and both were identically priced. All three websites offered toys that were categorized as boy's or girl's toys. Marketing differentiation is a difficult task on the Internet, and will certainly come down to product placement. Shopping for an erector set simply by narrowing the age group or shopping a department would take more time and patience than any child or adult would expend. However, all three sites have an easy to use site-specific search engine. By entering the word 'erector', all three sites returned their selection of erector sets. However, there were significant differences in the results. While etoys.com listed 3 different erector sets priced between $40 and $100, fatbraintoys.com listed 20 different sets in the range of $18 to $90. However, though toysrus.com only listed 8 different sets, they covered the wider price range of from $20 to $300. Clearly, when a consumer is shopping for a

Saturday, January 25, 2020

how to safely change a flat tire :: essays research papers

How To Safely Change A Flat Tire While changing a flat tire may seem to be simple enough, there are some safety tips you should know first. „h Always park on level ground away from oncoming traffic. „h Always place the gear shift lever in park or in gear in the case of a manual transmission. „h Always set the emergency brake and remove the keys from the ignition. After you have completed each of these procedures you will be ready to change the flat. Step 1: Remove the jack, spare tire and lug wrench. To prevent personal injury, remove the spare before raising the vehicle. Step 2: Remove the wheel cover by prying it away from the rim using the flat end of the lug wrench. If your vehicle is equipped with custom wheel covers or locking lug nuts, consult the owner's manual for proper removal instructions. Step 3: Next loosen each lug nut two full turns. Never remove the lug nuts completely during this step. Step 4: Following the instructions on the jack or in the owner's manual, place the jack under the vehicle as recommended by the car's manufacturer. Then raise the tire approximately two inches from the ground. This will allow enough room to remove the flat and replace it with the spare. WARNING: Never place your hands or feet under the vehicle or tire once it has been raised. Step 5: Now remove all of the lug nuts. When removing the lug nuts place them inside the wheel cover. This will make it easier to find them to put them back on. If you have trouble loosening a stubborn lug nut, spray it with WD-40 and let it set for about two minutes. This will help make the job easier. Step 6: Next remove the flat tire from the working area. Flat on the ground behind your car is the best place as this will help prevent it from rolling into traffic and it will be out of the way as well. Step 7: Place the spare tire onto the hub by holding the outer sides of the tire. Never place your hands in the center of the rim or under the tire. Step 8: Put each of the lug nuts back on with the tapered end of the nut facing the rim. When they are all on, make sure they are snug, not tight. This is just to help align the rim to the hub and hold the tire in place until the car is lowered.

Thursday, January 16, 2020

Heat Load

PROPOSAL NO PROJECT REF. FLOWRATE m? /h Bharath Babu DATA SHEET 19389 rev. 1 pos. 4 DATE: FOs FAHU-1-FINAL REVISED 7758 MODEL ITEM NO. PRINTED 3/17/2013 23MK0608 89230608 3/17/2013 MEKAR is participating in the EUROVENT CERTIFICATION Programme for Air Handling Units. 23MK range is certified under the number 09. 04. 418 and presented on www. eurovent-certification. com. Eurovent – Air handling units – Energy efficiency class A Section [m2] 1. 1625 Velocity [m/s] 1. 85 Type: With Recirculation 100[%] external winter design temperature  °C -25 GENERAL FEATURES Supply flowrate [m3/h] 7758 17. 5 400 3 50 Not available [l/s] 2155 Face velocity [m/s] 2. 51 2490 1370 1200 452. 58 1 RH RH 8000 global 69 [dB(A)] 87. 9 38 [dB(A)] 77. 9 33 [dB(A)] 74. 0 Feed Installed el. power [kW] : Tension [V] : Phase: Cycles [Hz] : Switchboard: Dimensions and mass Length [mm] Width [mm] Height [mm] Mass (no fluids) [kg] N ° sections [frames] Inspection side Header side 250 500 1000 81 88 82 73 80 69 73 75 67 Sound power Sound power at supply Outlet Sound power at supply Inlet Sound power outside panels Hz] [dB] [dB] [dB] 63 81 74 75 125 81 76 73 2000 78 62 62 4000 76 53 45  · CASING Type: Thermal break: Panel thickness [mm]: Outer skin: Inner skin: Insulation: Framework Roof: Handles: Drainable floor floor with checkered plate Baseframe Conduit for wiring Acoustic insulation: (M) [Hz] [dB] Frame with panels Std 60 Galvanised prepainted 0. 6 [mm] Galvanised 0. 6 [mm] Polyurethane 45 [kg]/m? anodized aluminium Not available nylon Not available Not available Galvanised Not available 63 6 125 8 250 8 500 13 Classification according to EN1886 Mech. trength: Leakage -/Leakage +: Filter by-pass Transmittance: Thermal bridges: Doors with sightglas Technical room: Light: D1 (M) L2/L2 (M) F9 (M) T2 (M) TB3 (M) No Not available Not available 1000 15 2000 16 4000 31 8000 36  · S001 FILTER SECTION 1 2 872306070608 80650000-1006 RIGID BAG FILTER SECTION WITH SIDE WITHDRAWAL WIT H PREFILTER 23MK0608 SYNTHETIC CORRUGATED FILTER THK 48 CL. G3 592 X 592 Viale Caduti sul Lavoro, 25 – 37063 Isola della Scala (VR) – Italy Tel. +39 045 6630536 – Fax +39 045 6630513 – www. mekar. it – [email  protected] it config23 V10. 9 8. 3 E6 M Sheet 1/5 PROPOSAL NO PROJECT REF.FLOWRATE m? /h Bharath Babu DATA SHEET 19389 rev. 1 pos. 4 DATE: FOs FAHU-1-FINAL REVISED 7758 MODEL ITEM NO. PRINTED 3/17/2013 23MK0608 89230608 3/17/2013 2 2 2 80650000-1007 80654025-0000 80654025-0001 SYNTHETIC CORRUGATED FILTER THK 48 CL. G3 290 X 592 RIGID BAG FILTER THK 290 CL. F7 592 X 592 RIGID BAG FILTER THK 290 CL. F7 290 X 592 Sinthetic 48 G3 lateral 36 93 150 1 63 3 125 2 250 4 500 4 Filter type Thickness/Length [mm] EN class Extraction Initial pressure drop [Pa] Average pressure drop [Pa] Final pressure drop [Pa] Filter kit 1000 6 2000 8 4000 11 8000 16 rigid bags 290 F7 lateral 58 129 200 1Pre-filter type Thickness/Length [mm] EN class Extraction Initial pressure drop [Pa] Average pressure drop [Pa] Final pressure drop [Pa] Prefilter kit Acoustic brakedown [Hz] [dB]  · S002 WATER COOLING COIL SECTION 1 1 2 1 1 872307040608 88Y271020060204330 80480000-0002 872321010308 822336006776 COIL SECTION COOLING LENGTH 480 MM 23MK0608 WATER COIL 23MK0608 P312_CUAL_TUBE THK 0. 35SP. AL 0. 12_27T_1020L_6R_20C_ _3PA_1 1/2†³RH_ENCLOSURES 40 RUBBER RING 3 MM THK INNER DIAMETER 1 1/2†³ DRAIN PAN EMBEDDED FOR COIL 1 RAILS L03 W08 MOD TIE BAR FOR DRAIN PAN RAILS 250L P312 CU 0. 5 12 staggered smooth Al 0. 115 3 corrugated 1020 27 6 20 1 1/2†³ 60 Peraluman 1†³ Power [kW] Sens. pow. [kW] AIR SIDE [m/s] Flowrate [m3/h] / [kg/h] Inlet temperature [ °C] Relative humidity Inlet [%] Outlet temperature [ °C] Relative humidity Outlet [%] Pressure drop [Pa] TUBE SIDE Flowrate [dm3/h] / [kg/h] Inlet temperature [ °C] Outlet temperature [ °C] Pressure drop [kPa] Fluid Internal volume [l] 500 3 1000 5 2000 6 4000 8 8000 11 94. 5 64. 2 2. 47 7758 / 9309. 6 46. 1 28 22 82 120 9142 / 9137 5. 5 14. 4 26 water 24. 5 Type Tube material/thickness [mm] Tube O. D. mm] Tube pattern Tube inner surface Fin material/thickness [mm] Fin pitch [mm] Fin type Length [mm] [n °] Tubes [n °] Rows [n °] Circuits Header†s diameter [â€Å"] Weight [kg] Drain pan material Drain Acoustic brakedown [Hz] [dB] 63 3 125 2 250 3  · S003 ELECTRIC BATTERY SECTION 1 1 872307010608 806206080001 COIL SECTION HEATING LENGTH 320 MM 23MK0608 ELECTRIC BATTERY 23MK0608 13. 5 KW 3 ST 9 EL 400 V 3 PH 50 HZ Power [kW] FE FE corrugated 1000 9 21. 1 AIR SIDE [m/s] Flowrate [m3/h] / [kg/h] Inlet temperature [ °C] Relative humidity Inlet [%] Outlet temperature [ °C] Relative humidity Inlet [%] [% 13. 5 2. 51 7758 / 9309. 22 82 27. 8 58 Type Tube material/thickness [mm] Fin material/thickness [mm] Fin type Length [mm] [n °] Elements Weight [kg] Viale Caduti sul Lavoro, 25 – 37063 Isola della Scala (VR) – Italy Tel. +39 045 6 630536 – Fax +39 045 6630513 – www. mekar. it – [email  protected] it config23 V10. 9 8. 3 E6 M Sheet 2/5 PROPOSAL NO PROJECT REF. FLOWRATE m? /h Bharath Babu DATA SHEET 19389 rev. 1 pos. 4 DATE: FOs FAHU-1-FINAL REVISED 7758 MODEL ITEM NO. PRINTED 3/17/2013 23MK0608 89230608 3/17/2013 Pressure drop [Pa] Feed Tension [V] Phase [n °] Steps Acoustic brakedown [Hz] [dB] 63 1 125 1 250 1 500 1 1000 2 2000 2 4000 4 8000 4 3 400 3 3  · S004 SUPPLY FAN SECTION 1 1 1 1 1 1 1 1 2 4 872305020608 80505012-0006 80560025-0032 80562025-0010 80530000-0012 80560025-0014 80562025-0009 80564000-0001 80566000-0041 80150030-0002 FAN SECTION 90 ° SIZE2 23MK0608 FAN RDH 355 E2 PULLEY FIXED PITCH 2 SPA 112-1610 BUSH 1610 DIAMETER 30 ELECTRIC MOTOR IP55 CL F 3 PH 4 KW 2 POLES 230-400V [V]50 [HZ] PULLEY FIXED PITCH 2 SPA 90-1610 BUSH 1610 DIAMETER 28 MOTOR SLIDE 90/132 V-BELT SPA 1482 RUBBER ANTIVIBRATING SUPPORT 45SH D30X25 M8 7758 500 0 355 855 66 921 88 250 81 [m3/h] [Pa] [Pa ] [Pa] [Pa] [Pa] [Pa] [dB(A)] 500 88Flowrate External static pressure Additional pressure drop Internal pressure drop Total static pressure Velocity pressure Total pressure Sound power spectrum [Hz] [dB] 63 81 125 81 1000 82 2000 78 4000 76 8000 69 Fan [n °] Model Blades Twin Absorbed power [kW] Rotation speed [rpm] Efficiency [%] Outlet velocity [m/s] 1 RDH 355 E2 Backward No 2. 67 2347 74 10. 5 Motor n °] Model Poles Protection/Insulation class Absorbed power at mains [kW] Nominal power [kW] Rotation speed [rpm] Motor vs Fan pwr oversize [%] Nominal current [A] Starting current [A] Tension [V] Phase Cycles [Hz] Bimetal protection/Antispark Efficiency class Motor pulley Motor taperlock Operating Frequency [Hz] 1 C112 2 IP55/F 3. 42 4 2880 49. 8 7. 7 57. 8 230-400V 3 50 No/No IE1 ex eff2 SPA90 1610-28 40. 75 Fan pulley Fan taperlock Belts Efficiency [%] SPA112 1610-30 2 x SPA 1482 91  ·  · ACCESSORIES 1 872326001001 872328000011 MICROSWITCH AT FAN SECTION DOOR (SUPPLY) PACKI NG: HOOVES IN WOOD Viale Caduti sul Lavoro, 25 – 37063 Isola della Scala (VR) – Italy Tel. +39 045 6630536 – Fax +39 045 6630513 – www. mekar. it – [email  protected] it config23 V10. 9 8. 3 E6 M Sheet 3/5 PROPOSAL NO PROJECT REF. FLOWRATE m? /h Bharath Babu DATA SHEET 19389 rev. 1 pos. 4 DATE: FOs FAHU-1-FINAL REVISED 7758 MODEL ITEM NO. PRINTED 3/17/2013 23MK0608 89230608 3/17/2013  · SPARE PARTS  · ORDINARY MAINTENANCE Q. ty 2 2 2 2 2 Code 80650000-1006 80650000-1007 80654025-0000 80654025-0001 80566000-0041Description SYNTHETIC CORRUGATED FILTER THK 48 CL. G3 592 X 592 SYNTHETIC CORRUGATED FILTER THK 48 CL. G3 290 X 592 RIGID BAG FILTER THK 290 CL. F7 592 X 592 RIGID BAG FILTER THK 290 CL. F7 290 X 592 V-BELT SPA 1482  · EXTRAORDINARY MAINTENANCE Q. ty 1 1 Code 80505012-0006 80530000-0012 Description FAN RDH 355 E2 ELECTRIC MOTOR IP55 CL F 3 PH 4 KW 2 POLES 230-400V [V]50 [HZ] Note: the indicated amounts are those present on the air han dling unit Viale Caduti sul Lavoro, 25 – 37063 Isola della Scala (VR) – Italy Tel. +39 045 6630536 – Fax +39 045 6630513 – www. ekar. it – [email  protected] it config23 V10. 9 8. 3 E6 M Sheet 4/5 PROPOSAL NO PROJECT REF. FLOWRATE m? /h Bharath Babu DXF DRAWING 19389 rev. 1 pos. 4 DATE: FOs FAHU-1-FINAL REVISED 7758 MODEL ITEM NO. PRINTED 3/17/2013 23MK0608 89230608 3/17/2013 LEGENDA : A: mm B: mm C: mm 515 453 458 D: mm 453 E: mm 1370 F: mm 2490 G: mm 1050 H: mm 150 (452Kg) Viale Caduti sul Lavoro, 25 – 37063 Isola della Scala (VR) – Italy Tel. +39 045 6630536 – Fax +39 045 6630513 – www. mekar. it – [email  protected] it config23 V10. 9 8. 3 E6 M Sheet 5/5

Wednesday, January 8, 2020

A Financial Audit on Walton Hi Tech Industries Limited - Free Essay Example

Sample details Pages: 8 Words: 2255 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Case study Level High school Did you like this example? Table of Contents Introduction of Walton Sources of Finance Internal Sources of Finance External Sources of Finance Financial Sources of Walton Internal Sources of Walton External Sources of Walton References . Don’t waste time! Our writers will create an original "A Financial Audit on Walton Hi Tech Industries Limited" essay for you Create order Introduction of Walton Walton Hi Tech Industries Limited started operating in Bangladesh from 1977. Today it is considered as one of the top manufacturing plant in Asia. It is the manufacturer of multi-staged electronics. Refrigerator, air conditioner, freezer, motorcycle, television, mobile phones, washing machine, microwave oven and several other electrical home appliances are their main product. Walton Hi Tech Industries Limited and their sister concerns have 12,000 employees and around 600 skilled engineers from abroad working for them. They also have a strong Research and Development division that comes up with new and innovative products. Walton also has their own Mould and Die making section and machineries from abroad. Walton maintains a strong Quality Control policy and has a Quality Control Division. Walton has several showrooms and outlets located all over the country. Walton has managed to capture a significant market share over the years because of their innovative and affordable produ cts. Sources of Finance Sources of finance mean different ways a business can attain money. The financial need of any business depends on the size and type of the business. Businesses can access financial resources from two main sources: Internal Sources From within the business External Sources From outside the business Internal Sources of Finance Owners Savings This money comes from the owners own savings. This can be in the form of start-up capital which is used when the business is starting up. It can also be in the form of additional capital which can be used for the expansion of the company. Advantages: No interest is required Does not have to be repaid to any one or any bank Owner will get all the profit made Disadvantages: Risk of unlimited liability There is a limited amount that an owner can invest Capital from profits A running business can use the profit made back in the business. This way more profit can be made in the future. The amount of profit that will be invested back in the business will depend on how much profit the owners want to keep for themselves. Advantages: No interest is required Profit will increase Does not have to be repaid to a bank or a person Money is available for growth of the company Disadvantages: Businesses might not make enough profit to put back in the business More taxes to pay Sale of fixed asset Many businesses have fixed assets that are of no use to them. Money can be made by selling off those fixed assets Advantages: No extra cost is needed since the item to be sold is already there Businesses liquidity will rise Disadvantages: Slow method to raise money Many businesses do not have surplus assets Working capital This is the money that is used to pay for the daily activities of a business. Daily activities include paying bills, rents, salaries, stationeries etc. This is the temporary source of finance that a business keeps. Working Capital is defined as: Working capital = current assets current liabilities Advantages: Sale of fixed asset In flow of money No debt or loan has to be taken Disadvantages: Less assets External Sources of Finance Bank Loan Banks offer different types of loan, commercial mortgages and business accounts based on a particular business. Interest has to be paid to the bank by the business. To get these loans the business will also have to show the bank some kind of security. Advantages: It is a good method for both short term and long term finance As the interest rate for repayment is given the business can plan ahead Large businesses can get lower interest rates Disadvantages: Small companies will be required to pay higher interest rates It can become expensive because of the interest rates Banks require security on the loan Hire Purchase This method allows a business to use resources and obtain assets without paying a big sum of money. Regular payments have to be made in order to do such thing. After all the payments have been made the asset belongs to the business. Advantages: After all the payments the business will have another asset Payments have to be made over a time which helps the business to use expensive items Business can use up to date equipment Disadvantages: This can be an expensive method Cannot have full ownership of asset unless all payments are cleared Businesses end up having to pay more because interest is added Businesses sometimes end up buying things they do not need Leasing This method allows businesses to use resources and assets by paying to use them whenever they need it. The businesses do not end up owning the goods at the end of any lease. Leasing is seen as renting an asset. Advantages: Payments have to be made over a time so large sum of money is not needed Businesses can use the equipment they need without having to buy it Disadvantages: Can turn out to be expensive The asset belongs to the finance company even after all the payments are made Share Issues Issuing shares is offering an ownership of the business. Most small companies issues shares when they become limited (ltd) from sole trader or partnership. These shares are not offered to be sold publicly but it is available close friends and family. When limited companies become public limited company (PLC) they can sell shares on the stock exchange. These shares can be sold many times at different price depending on the demand. Advantages: Allows a company to raise capital easily Selling shares prevent a company from taking debts or loans No interest is needed Disadvantages: Division of profits among new owners Shareholders become part of the company so the original owners lose some of their rights and control Building Societies Building societies offer loans, business accounts, mortgages and overdraft facilities with interest. Unlike taking a loan from a bank businesses will not have to show some security to get the loan. Advantages: It is a good method for both short term and long term finance As the interest rate for repayment is given the business can plan ahead No need of showing security Disadvantages: Have to pay interest Small businesses end up being in a lot of debt Venture Capitalist These people invest in risky ventures to get a share of the ownership. They have experience building companies and know their job very well. They provide capital for the business to expand and grow. Advantages: Brings expertise and wealth in a company The business does not have to repay the money Disadvantages: The process can become lengthy and complicated Loss of control Have to share profit with the new ventures Factoring Factoring is when another firm buys businesses debts. This way the business gets immediate money and the debt factoring company collects the debts and gets a cut for their service. Advantages: Instant cash which means there is money for growth of the business Does not require collateral Disadvantages: Loss of control Customers pay to the factoring company and not the business Friends or family Money can be borrowed from friends or family. This can be paid back in exchange of limited shares or in cash. This money can be obtained at a lower interest rate. Advantages: Lower interest rates More flexible repayment terms Disadvantages: People mistake this as informal transactions Personal arguments can come in the way Government grants This is a debt free financing offered by the government to new or established businesses. This gives businesses instant stability to expand their business. Advantages: Does not have to be repaid to the government Businesses will get many social benefits Disadvantages: These grants come with strict restrictions, as to where the company can use the money Many conditions apply in order to get these grants Not all businesses are eligible Financial Sources of Walton Walton Hi- Tech Industries Limited use both internal and external sources of finance. They are explained below. Internal Sources of Walton Capital from profits Walton uses the profit made back in the business. This way more profit can be made in the future. The amount of profit that will be invested back in the business will depend on how much profit the owners of Walton want to keep for themselves. Advantages: No interest is required Waltons profit will increase Walton does not have to repay to a bank or a person Money is available for the growth of Walton Disadvantages: Walton might not make enough profit to put back in the business Walton will have to pay more taxes Sale of fixed asset Walton is a big industry with extra assets that sometimes take up space rather than coming to use. These fixed assets are of no use to them. Walton is able to make extra money by selling off those fixed assets to businesses that need them. Advantages: No extra cost is needed by Walton since the item to be sold is already there Waltons liquidity will rise Disadvantages: Slow method to raise money Sometimes Walton does not have surplus assets to sell Working capital This is the money that is used to pay for the daily activities of Walton. Daily activities include paying bills, rents, salaries, stationeries etc. This is the temporary source of finance that Walton keeps. Working Capital is defined as: Working capital = current assets current liabilities Advantages: Sale of fixed asset that are of no use to Walton In flow of money No debt or loan has to be taken by Walton Disadvantages: Number of assets of Walton decreases External Sources of Walton Bank Loan Banks offer different types of loan, commercial mortgages and business accounts based on Waltonà ¢Ã¢â€š ¬Ã¢â€ž ¢s business. Interest has to be paid to the bank by the business. To get these loans Walton will also have to show the bank some kind of security. Advantages: It is a good method for both short term and long term finance As the interest rate for repayment is given Walton can plan ahead Large businesses like Walton can get lower interest rates Disadvantages: It can become expensive for Walton if the interest rates increases Banks require security on the loan from Walton Hire Purchase This method allows Walton to use resources and obtain assets without paying a big sum of money. Regular payments have to be made in order to do such thing. After all the payments have been made the asset belongs to Walton. These assets can be machineries needed to build products and cars to transport them to the outlets. Advantages: After all the payments Walton will have another asset Payments have to be made over a time which helps Walton to use expensive items Walton can use up to date equipment without spending too much Disadvantages: This can be an expensive method Walton cannot have full ownership of asset unless all payments are cleared Walton sometimes end up having to pay more because interest is added Leasing This method allows Walton to use resources and assets by paying to use them whenever they need it. The businesses do not end up owning the goods at the end of any lease. Leasing is seen as renting an asset. Advantages: Payments have to be made over a time so large sum of money is not needed by Walton Walton can use the equipment they need without having to buy it Disadvantages: Can turn out to be expensive The asset belongs to the finance company even after all the payments are made and not to Walton Share Issues Issuing shares is offering an ownership of the business. Walton sells shares on the stock exchange. These shares can be sold many times at different price depending on the demand. Advantages: Allows Walton to raise capital easily Selling shares prevent Walton from taking debts or loans No interest is needed Disadvantages: Division of profits among new owners Shareholders become part of Walton so the original owners lose some of their rights and control Factoring Factoring is when another firm buys businessesà ¢Ã¢â€š ¬Ã¢â€ž ¢ debts. This way Walton gets immediate money and the debt factoring company collects the debts and gets a cut for their service. Advantages: Instant cash which means there is more money for Walton Does not require collateral Disadvantages: Loss of control of Walton Customers pay to the factoring company and not to Walton Government grants This is a debt free financing offered by the government to new or established businesses. This gives Walton instant stability to expand their business. Advantages: Does not have to be repaid to the government Walton will get many social benefits Disadvantages: These grants come with strict restrictions, as to where Walton can use the money Many conditions apply in order to get these grants References Biz / ed. 2012. Biz/ed Introduction Sources of Finance | Biz/ed. [ONLINE] Available at: https://www.bized.co.uk/learn/accounting/financial/sources/index.htm. [Accessed 26 February 14] Facebook . 2011. Waltonbd. [ONLINE] Available at: https://www.facebook.com/Waltonbd. [Accessed 25 February 14]. Iowa State University. 2013. Types and Sources of Finance for Start-up Business | Ag Decision Maker. [ONLINE] Available at: https://www.extension.iastate.edu/agdm/wholefarm/html/c5-92.html. [Accessed 25 February 14] Walton. 2014. Walton at a Glance. [ONLINE] Available at: https://www.waltonbd.com/index.php?route=information/informationinformation_id=4. [Accessed 25 February 14] wikinut. 2009. Business: Source of Finance. [ONLINE] Available at: https://business.wikinut.com/Business%3A-Sources-of-Finance/jryqhksz/#Internal-Sources-of-finance. [Accessed 26 February 14]