Mercury Footwear Questions Essay

1. Is Mercury an appropriate target for AGI? Why or why not? Yes, we do think so. In the case, we could find some characteristics of footwear industry: (1) It is a mature, highly competitive industry marked by low growth, but stable profit margin. (2) Performance of individual firms could be quite volatile for they need to anticipate and exploit fashion trend. (3) Except some global footwear brands, athletic and casual shoes market is still fragmented, which means each company could has its own market because of its characteristic. (4) In this market, it is important for the brand image, specialized engineering for performance and price. (5) Life cycle is short. (6) Inventory management and production lead times are critical for the success. (7) Main sale channels are department stores, independent specialty retailers, sporting goods stores, boutiques and wholesalers. (8) Most of the firms outsource the manufactures in China. Below are some characteristics for Mercury and AGI we need to focus on during the analysis: AGI Mercury Target Customer Target customers are urban and suburban family members aged 25 to 45. Youth market, mainly 15 to 25. History Among the first companies to offer fashionable walking, hiking and boating footwear. Its mother company decided to extend the brand by creating complementary line of apparel. Because of the poor performance, it was decided to sold. Style Logo is marked with prosperous, active and fashion-conscious lifestyle. Its main customers are not interest in its apparel. Financial performance Among the most profitable firms. Had poor performance after acquisition by WCF. Revenue contribution 42% of revenue from athletic shoes and balance from casual footwear. Revenue and operating income were 470.3 million and 60.4 million in 2006. Revenue and EBITDA were 431.1 million and 51.8 million.. Products Athletic shoes developed from high-performance footwear to athletic fashion wear. Four main segments: men’s and women’s athletic and casual footwear. Casual shoes focus on mainstream market. In order to emphasizing individual products, it began to monitor styles and images from global culture Focus on smaller portfolio of classic products with longer lifecycles and could maintain simple production and supply chains. Sales channels Mainly sold in department stores, specialty retailers, wholesalers and independent distributors. Small percentage is sold through website. Department stores, specialty stores, catalogs, discount retailers and internet. Inventory management Good at inventory management in the industry. Inventory management performance is worse than the average level. Outsource Outsource manufacture in China. Outsource main materials in foreign suppliers. Advantages &Disadvantages It takes small size as its competitive disadvantages. And it faced with some problems in the consolidation of manufacturers. Price cuts and promotion in apparel line hurts operating margins but helped to the growth in sales. Sales growth is lower than the average because of there is little discount in  price. We could learn that managers of AGI want to enlarge the scale of its company and gain larger market share because of the stable profit margin. And since the revenue is almost the same, it is a good choice to merge with Mercury, which means that revenue would be doubled after acquisition. And these two companies have some similar factors, such as : (1) They could use the same sale channels after acquisition, and internet channel could be enlarged. (2) They could combine manufacturers to get a powerful bargain in suppliers. (3) The product segments are almost the same, which means that there should be little work to do after acquisition in product adjustment. (4) Thanks to the profitable ability of AGI, it is much easier to make a better financial performance of Mercury. (5) It is good for them to increase the performance of inventory management if they merge together. (6) Although their target customers are different, especially in ages, which means that style and brand are different in the very beginning, this factor could turn into an advantage for the new company could have a fully segment of customers with a wider age ranges. Therefore, take into above factors into account; we think that Mercury should be an appropriate target for AGI. 2. Review the projections formulated by Liedtke. Are they appropriate? How would you recommend modifying them? In the case, we could find that Liedtke used historical averages to assume the overhead-to-revenue ratio. However, historical data is usually useless for future. Some studies found there is little evidence that firms grew fast continued to grow fast in the next period. And sometimes there are even negative correlations between growth rates in the two periods. Besides, smaller firms tend to be more volatile than others, which we could find the same characteristics in these two firms we are talking about. And just as we mentioned in the question 1, revenue may be doubled after  acquisition, it just fits the theory that it is difficult to maintain historical growth rates as firms double or triple in size. Therefore, based on the above analysis, we think that it is not reasonable to use historical data for future projections. And sometimes, analyst should be better than the historical growth. Considering that there are five main channels for analyst forecasts: firm-specific information, macroeconomic information, information revealed by competitors on future prospects, private information about the firm and public information other than earnings, we think Liedtke could find more information from above channles to get more accurate assumption. And since performance of Mercury is poorer than the average of the industry, it is better to use industry average level for the benchmarking of Mercury when predicting, instead of a discount rate of AGI for example. And from the comparison of 2007 to 2006, we can find Liedtke’s forecast need great input from AGI to support the development of Mercury, whether he has taken this into consideration? And he estimate debt/equity ratio remains the same as AGI, that is also unreasonable, for it is not possible to change that in short period. 3. Estimate the value of Mercury using a discounted cash flow approach and Liedtke’s base case projections. ï ¼Ë†1ï ¼â€°first of all, to calculate the cash flows from 2007 to 2011, Net Income – (Capital Expenditures – Depreciation) – Changes in non-cash Working Capital = Free Cash flow to Firm We can get the result. Free Cash flow -17,192 26,867 21,740 25,158 29,319 (2) then we need to calculate the terminal value. a. Cost of Capital For cost of capital, we know the debt ratio is 20%, and cost of debt is 6%, we need to find the cost of equity. We assume the cost of equity equal return on equity, we can calculate the historical return on equity from 2007- 2011 is as below, Return on equity 12.8% 14.1% 14.5% 14.8% 14.9% We take 14% as reference. Based on the formula: Cost of Capital =debt ratio *cost of debt +equity ratio * cost of equity, We can get the cost of Capital in 2012, 12.7% b. growth rate in future We can find during the period from 2007- 2011, the growth rate of net income is not stable, so we assume from 2012, Mercury enter into stable and slow development stage. And it is necessary to calculate the cash flow in 2012. From 2007- 2011, the growth rate ranged from 4.74%- 16.3%, we assume the growth in future will be not that high. We can find during the period from 2008- 2011, the reinvestment rate 15.57%- 37.1%, we just take a middle one 24.37%, by multi reinvestment rate and cost of capital (assume cost of capital =return on capital), to reach growth rate afterwards= 3.09%. c. based on the growth rate is 3.09%, we can get EBIT in 2012 is 39,930.. We have assumed ROC=WACC Terminal Value=EBIT n+1*(1-t)/cost of Capital, we can get Terminal Value in 2011 is 315,237. (3)Present value of cash flows: We have get the cash flows of 2007-2011 and terminal value in 2011, and the cost of capital is 12.7%, we can get the respective present value of them and reach the total present value 226,514, which is the estimate Firm value of Mercury. (4) Alternative method to calculate cost of capital, then value of Mercury: a. beta We have learnt from Exhibit 3 of peer companies information in this business, we can calculate cost of capital in alternative ways. Unlevered beta for business= Beta comparable firms/[1+(1-t)(D/E ratio comparable firms)] From information provided in Exhibit, we can get average Beta and D/E ratio, is 1.56, 24.9% respectively. Therefore Unlevered beta for business= 1.35 We know the D/E ratio and tax rate of Mercury, then get levered beta for Mercury =1.52 b. risk free rate and risk premium we assume risk free rate is 5%, and risk premium as the historically one 4.3%. The cost of equity will be 11.5%. Then the cost of capital will be 10.6%. c. expect g and terminal value in 2011 expect g and terminal value in 2011 will be 2.6% and 374,576 respectively. d. total present value of Mercury Total value of Mercury will be 247,479, which is the estimate Firm value of Mercury under the alternative method. In my opinion, the value calculated via alternative method will be more reliable. 4. Do you regard the value you obtained as conservative or aggressive? Why? I think my valuation is conservative, the reason is as follows: (1) Under the  basic method, the expected g is much lower than the average g from 2007-2011, even lower the lowest one within this period and the reinvested rate is lower than the average one from 2007-2011 and also not a high one in general business, and we can also found the EBIT Margin is lower than the average one in that business. (2) (3) Under alternative method, the expected g is much lower as 2.6%, the risk free rate is also a medium one, and the risk premium is a historical one, which is much higher than recent risk premium in USA. 5. How would you analyze possible synergies or other sources of value not reflected in Liedtke’s base case assumptions? We have conduct some simulation in the spreadsheet, we can find the present value of Mercury is very sensitive to cost of capital, under basic model if the cost of capital reduce to 10%, the value will rise up to 304,882. As for debt ratio and expect g, it is not so sensitive, but has some influence. To my surprise, the reinvestment rate is not sensitive to the outcome, I have not figure out the reason. Under the alternative model, beta, risk free rate and risk premium are all sensitive to the outcome, but not significant as capital in basic model. As for synergy, the management of inventory has not shown great synergic effect to the outcome, for from 2007 to 2011, inventory level has not reduced. I think if AGI can reduce the cost of capital, which will show the great synergic effect to the acquisition.

Working for a Large Company

The number of people in the US who are quitting their corporate jobs to start their own businesses is growing. One recent best-selling book entitled Fire your Boss! seems to reflect the growing discontent with company life. Why are so many people going into their own businesses? One of the most frustrating things about corporate life is the bureaucracy. This is the administrative system of paperwork and red tape that keeps track of everything in the corporation.Any decision must be agreed upon by many people in different departments and levels of the company. This can be very frustrating for individual employees who want to have control over their own work. They can become exasperated when their good ideas get tied up for months in the bureaucratic machinery. Employees often long the freedom of being their own boss. Another depressing aspect of working for a corporation is the lack of job security.Contrary to business owners, employees in a large company can be fired at any time, for almost no reason. If there is a downturn in the economy, layoffs are likely to come. Even if a worker has done his best to serve the corporations, he could find himself fired without warning or explanation. When a person works for himself, however, he cannot be fired. The traditionally attractive fringe benefits of a corporate position have been decreasing in recent years as well.There was a time when landing a job at a top corporation meant the employee was assured of a good retirement. More and more these days, however, pension benefits are being cut to lower payroll costs. Workers are being forced to worry more about their own retirement plans. In the same vein, health care is another benefit that has started to evaporate. Health insurance premiums are rising, while covered medical conditions are shrinking. This means employees are paying more out-of-pocket expenses than before and getting less care in return.

Effects of Child Abuse Essay

Child abuse is a prevailing problem in society that must be addressed at the soonest possible time. However, it is one of the most difficult problems to address as well since there are only certain ways by which it can be monitored. What makes it even harder is the fact that the parents themselves are sometimes the abusers. Thus, it sometimes difficult to help the child since his primary guardian is the abuser himself. Child abuse by parents can be extremely detrimental to children. The effects of such abuse may become evident during their childhood or when the child grows up and enters adulthood. The long-term consequences of child abuse are sometimes grave enough that they ruin the life of the adult. Experiences of child abuse as a child affect not just the personality of the adult but his relationship with his parents as well. For obvious reasons, when parents abuse their children, they strain their relationship with the children. One cannot expect an adult, who was abused by his parent as a child, to maintain a close relationship with them. Child abuse has psychological effects that may hinder the development of the person’s character and identity. This is especially true the abuser is the parent. For instance, the abused child is expected to have low self-esteem that stems from the fact that his own parents do not love him. Abusing him is a clear sign to him that they do not love him. Thus, without his parents’ love, the individual may lack the self confidence and self esteem to function in society.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The abuse causes the child to distance himself from the parent. Later on, as he grows up, this often translates to difficulty in forming attachments with other adults and his peers. The child’s insecurity and lack of self-esteem can extend to his adult life. Thus, when the child becomes an adult, he does not feel secured and more importantly, he lives a restrained life.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   These consequences and effects of child abuse do not only affect the individual’s life. These consequences challenge the very ideals upon which the American way of life is built upon. Americans believe that they have the right to have a family who enjoys security and freedom. However, the mere fact that the children are abused within the confines of their very own homes and within their own families, the idea of being secure is greatly eroded. Moreover, the abuse hinders the freedom of the child. As the child grows up, he does so with such American ideals left in ruins. In a way, the abuse he experienced as a child may reflect on how he treats his own children as he forms a family of his own.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The effects of parental child abuse of any kind exhibit themselves as the child becomes an adult. It is an experience that the individual bears with him long after the acts were committed. Not only does the abuse mold his personality, it affects his ideals in life as well. His ideals on family, society, and relationships are changed and may transfer to his own family. Such transfer may become chain reaction which will be to the detriment of society in general. It is for this reason that the problem must be acted on and must be prevented as much as possible.

Case Brief Essay Example | Topics and Well Written Essays - 250 words

Case Brief - Essay Example The franchise agreement consisted of a printed form prepared by respondent, and, with a specific exception for income from property management services, provided in pertinent part as follows: â€Å"Franchise {appellant} agrees to pay†¦ a ‘service fee’ equal to 6 percent of Franchisee’s gross income derived from all transactions for which a real estate license or securities license is required. At the franchise location covered by the agreement, in addition to negotiating real estate sales and purchases for clients, appellant also maintained an escrow department which represented to the public at large that it was operating under a Century 22 franchise. Appellant charged its sellers and buyer separate and distinct fees for escrow services from fees collected on sales commissions. Appellant was not licensed to act as an escrow agent under the general provisions of financial Code section 17000 et seq. (the Escrow Law). However, appellant did act as an escrow agent under an exception to the Escrow Law-- Financial Code section 17006, subdivision (d). The terms of the franchise agreement provided that appellant corporation was to maintain certain prescribed records and reports to respondent those transactions for which a service fee was payable. During the time of the agreement, appellant failed to report any transactions or income received from the operation of its ‘escrow† business. Upon the termination of the franchise agreement, respondent conducted an audit of the books and records of appellant’s franchise. The audit was authorized by the franchise agreement. During the audit, respondent discovered that appellant had not paid a service fee for the income derived from escrow services. Respondent demanded payment from appellant, and from defendant, Nick Rockton. Appellant and defendant Nick Rockton refused to pay since they did not think that the agreement covered income derived from escrow services. This

The South Korean Chaebol System Essay Example | Topics and Well Written Essays - 2000 words

The South Korean Chaebol System - Essay Example The chaebol is the leading type of business group in South Korea. It can be defined as a business group which is owned and controlled by a person and that person’s family – a definition that coincides for the most part with Morikawa’s definition of zaibatsu, which is that the business group exclusively owned and controlled by the family’, and probably also fits the rest of the definition, ‘diversified industrial firms’, since it is a business group. (Shiba and Shimotani, p. 31) The chaebol concept encouraged the formation of conglomerates under a single holding company, usually controlled by a family. It was fashioned after the Japanese keiretsu. However, unlike the latter, chaebol’s do not have their own financial institutions and that they require the government’s approval of financial backing since South Korea’s banks are nationalized. (Dubois, p. 42) From the late 1950s, it has emerged due to favorable import license concessions, access to scarce foreign exchange and governmental properties seized from the Japanese formed part of the Korean state policy. Samsung, Korea’s oldest chaebol, and the four other biggest conglomerates were established during this period. It was in the 1960s when the chaebols forged its strong partnership with the government. The Korean government identified talented entrepreneurs and systematically sponsored them by credit, trading licenses, tax advantages, and other measures. (Richter, p. 73)Â   The nature of this alliance between the state and the chaebols is fundamental in the Korean impressive economic performance seen from thereon. The government support, encouragement, and intervention resulted to what was called as the guided economic development wherein the government involvement enabled chaebols to monopolize spheres of activity and accumulate capital in order to finance diversification of production. According to Kong, democratization and economic liberalization policies did not break the interdependence of state and chaebols and that it even had the effect of strengthening the chaebols and generating new forms of collusion.

Rhetolical analysis Essay Example | Topics and Well Written Essays - 1250 words - 1

Rhetolical analysis - Essay Example ill go down in history as the greatest demonstration for freedom in the history of our nation.† Although some paid little attention to his words, his speech perpetually constituted civil rights in the souls of majority of Americans (Leff and Kauffeld 181). King’ speech had a way of persuading the American people with powerful words, in fact, he remains to be one of the world’s greatest orators. In his deliberative speech, he notably uses Ethos, Logos and Pathos to convince Americans that racism and discrimination was not the way to go to achieve the American Dream. King’s uses figures of speech to stress certain words. For example, the use of inversion and anaphora stresses the aim and main points in his speech. He states that â€Å"one hundred years later, the Negro still is not free. One hundred years later, the life of the Negro is still sadly crippled by the manacles of segregation and the chains of discrimination. One hundred years later, the Negro lives on a lonely island of poverty in the midst of a vast ocean of material prosperity. One hundred years later, the Negro is still languished in the corners of American society and finds himself an exile in his own land.† He also uses experience and metaphors to show his audience what discrimination and racism has done to the American society. His own experience is incorporated in the speech when he says that â€Å"I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their charac ter.† And metaphors when he says that â€Å"Instead of honoring this sacred obligation, America has given the Negro people a bad check, a check which has come back marked "insufficient funds." To bring authority to his speech and project that he is worth listening to, King uses Lincoln who is a respectable figure, the American Constitutionan and God. In his analogy of Lincoln, he states that â€Å"Five score years ago, a great American, in

The Main Challenge of Intercultural Relations Essay

The Main Challenge of Intercultural Relations - Essay Example Every person belongs to a certain culture and, therefore, the qualities or characteristics in a given culture depend on the general characteristics of the people. This implies that the average strength and weakness of people in a given culture might be considered as the weakness or strength within the culture. Identifying personal weakness and strength is an important aspect of effective communication. Tolerance is the ability to give other people a chance to express themselves and their ideas. This course has enabled me to acknowledge tolerance as an important element in culture. I also realized that I am a very analytical person. In addition, I realized that I have good listening skills and this is my basic strength in intercultural interactions. Good listening skills enable to give people from different cultural backgrounds the chance to express their views and ideas (Lustig & Koester, 2010). Using this skill, I am able to learn other people and this contributes to effective inter cultural relation. Our culture promotes good listening and analytical skills. However, the culture has some few weaknesses that act as a barrier to effective communication. The course has enabled me to realize that members of our culture are very judgmental. I have also learnt this is the basis of having a negative attitude towards people from different cultures. If people from our culture improve in this area, I believe that we can become more competent in our intercultural interaction and communication.

Managing Working Capital Essay Example | Topics and Well Written Essays - 750 words

Managing Working Capital - Essay Example Fundamentally, the working capital is total current assets of GHS (Jain, p.13.4). Langabeer (2008) explained further that this is the â€Å"funds necessary to finance the conversion operating cycle for a hospital – from delivering services to receiving funds to paying invoices for materials used† (p.59). The net working capital, on the other hand, is the difference in GHS’s current assets and current liabilities or that portion of current assets that are financed with long-term funds (Jain, p.13.4). These conceptual s definitions underscore the requirement to manage working capital because it determines the ability of an institution such as GHS to pay its debt and enhance its value. According to Langabeer, it reflects the efficiency of a hospital in the manner it orders, stores and pay for goods and services, hence, â€Å"the key with working capital management is to match the amount of money needed in the short term with the amount of funds available and keep a ll other assets in assets with higher returns† (p.59). For instance, working capital management in GHS involves initiatives such as the investment in an equity fund or the purchase of property and the construction of a facility that would yield profitability. GHS’s treasurer plays an important role in the working capital management. This is highlighted by the fact that the working capital needs of GHS can be affected by several factors such as the nature of business, the seasonality of operations, the production policy, market conditions and the conditions of supply (Chandra, 2011, p.574). He must ensure an efficient management because it will inevitably lead to increased organizational performance, quality in service delivery and profitability. The activities follow the GHS working capital cycle, which – as in the case of all organizations – is a process in which it purchases or produces inventory, holds it for a time, and

Discussion Replies Essay Example | Topics and Well Written Essays - 250 words - 3

Discussion Replies - Essay Example l powers cannot exist without seeking another military tool that would keep the political and military balance of power in the world sustained as it is. Better still, is the observation that absent the nuclear threat, large army building would be the next strategy for the world powers. The relevance of the argument that nuclear weapons are not irrelevant because they are the weapons against themselves is an interesting but very accurate observation. Nuclear weapons are the weapons against nuclear weapons, due to the fact that they deter any country from using them, since retaliation with the same weapons would destroy the world. Additionally, the observation that nuclear weapons in the world exists only as a deterrence is plausible, owing to the fact that there is no victory that would be achieved through the use of nuclear weapons, as the whole population would already be destroyed. It is also true that with the nuclear weapons eliminated, the new war technology would turn to the use of drones for

Advantages and Disadvantages of the Internet Essay Example for Free

Advantages and Disadvantages of the Internet Essay Many people fear the Internet because of its disadvantages. They claim to not use the Internet because they are afraid of the possible consequences or are simply not interested. People who have yet connected to the Internet claim they are not missing anything. Today’s technological society must realize that it is up to them to protect themselves on the Internet. Children using the Internet have become a big concern. Most parents do not realize the dangers involved when their children connect to the Internet. When children are online, they can easily be lured into something dangerous. For example, children may receive pornography online by mistake; therefore, causing concern among parents everywhere. Whether surfing the Web, reading newsgroups, or using email, children can be exposed to extremely inappropriate material. To keep children safe, parents and teachers must be aware of the dangers. They must actively guide and guard their children online. There are a number of tools available today that may help keep the Internet environment safer for children. Musicians are also concerned with disadvantages to the Net such as, accessibility and freedom. They are upset because the Internet provides their music online at no charge to consumers. File-sharing services, such as Napster, provide copyrighted songs to all Internet users. The main concern is the music is free! Musicians feel they are not getting paid for their work. Because of Napster, it is almost impossible to close down all file-sharing services because there are too many of them to count. Another major disadvantage of the Internet is privacy. Electronic messages sent over the Internet can be easily tracked, revealing who is talking to whom and what they are talking about. As people surf the Internet, they are constantly giving information to web sites. People should become aware that the collection, selling, or sharing of the information they provide online increases the chances that their information will fall into the wrong hands. When giving personal information on the Internet, people should make sure the Web site is protected with a recognizable security symbol. On the other hand, this does not mean they are fully protected because anyone may obtain a user’s information. In other words, the most common Internet crimes are frauds. Today, not only humans getting viruses, but computers are also. Computers are mainly getting these viruses from the Internet, yet viruses may also be transferred through floppy disks. However, people should mainly be concerned about receiving viruses from the Internet. Some of these dangerous viruses destroy the computer’s entire hard drive, meaning that the user can no longer access the computer. Virus protection is highly recommended. Despite all of the terrible disadvantages of the Internet, there are numerous advantages. In fact, the advantages weigh out the disadvantages. The most common thing the Internet is used for is research. Children and students are among the top people who use the Internet for research. Nowadays, it is almost required that students use the Internet for research. The Internet has become one of the biggest sources for research. Almost everyday, research on medical issues becomes easier to locate. Web sites have become available for people to research diseases and talk to doctors online at sites such as, America’s Doctor. Entertainment is another popular reason why many people surf the Internet. Downloading games, going into chat rooms or just surfing the Web are some of the uses people have discovered. There are numerous games that may be downloaded from the Internet at no charge. Chat rooms are popular because users can meet new and interesting people. In fact, the Internet has been used by people to find life long partners. When people surf the Web, there are numerous things that can be found. Music, hobbies, news and more can be found on the Internet. Another popular thing to do on the Internet is to check out the news. Almost all local news can be obtained through the Internet. Up to date sports scores are probably the most popular looked at news. Sports scores are updated on the Internet as soon as the game ends. Weather is also a popular source to look up on the Internet. Using the Internet to get the weather allows people to view weather all over the world. Live radar all over the country and local forecasts are just to name a few of the things that may be obtained for weather information on the Internet. Shopping online has also become a huge success and is considered a great advantage of the Internet. No matter what people are shopping for, it can be found on the Internet. People do not even have to leave their homes. A few companies have collected millions of dollars using the Internet for selling. Clothing is probably one of the most bought items online. Almost every major clothing store has its on Web site. In fact, In US, people can even go grocery shopping online using such sites as Priceline.com. Just one click of the mouse on the items they want to purchase and the items are delivered to their front door. Unfortunately, this kind of service is not yet available in Malaysia for the time being. Groceries and clothing are only a few of the items that may be bought on the Internet. In conclusion, today’s society is in the middle of a technological boom. People can either choose to take advantage of this era, or simply let it pass them by. The Internet is a very powerful tool. It has many advantages; however, people need to be extremely aware of the disadvantages as well.

Ethical Responsibility Of The Airline Industry Management Essay

Ethical Responsibility Of The Airline Industry Management Essay The internal and external environment of an organization is related to managerial ethics and also corporate social responsibility in the process of management. This report focuses on the airport industry. In my report, there is the meaning of all factors and also an analysis of the airport industry. I expect that this report will help us know more about some key areas that need to be improved and understand key management. Ethical Responsibility of the Airline Industry Introduction The business of international airline has developed as businesses progressively are rotating worldwide in periods of their investments, provide and output chains and their consumers. The fast development of world business in items and services and worldwide direct buying have furthermore supplemented in the development of enterprise travel? One thing that actually influenced people about the industry of airline was their proficiency to sustain high earnings and sustain high clientele groundwork even after the September 11 attacks and the 2002 recession (John, 2005). The worldwide charges have expanded due to advanced security methods while localized or nationwide charges are very inexpensive to consumers. Discussion Airlines achievement is mainly due to their pointed aim. This is apparent through their no-frills, low-cost model; their aim is to supply the safest and cheapest pattern of air travel between two destinations. Driven through the concept that consumers can be persuaded without having costly choices accessible for them, International Air Transport Association, IATA, outlooks a boost in worldwide air travel through an mean 6.6% a year to the end of the ten years and over 5% a year from 2000 to 2010 (John, 2005). These rates are alike to those of the past 10 years. According to the last four years, outcomes of airlines economic advancement have sustained stable snare sales. In 1999, they had a mean snare sale of $6,739 million, which is an increase to $7,565 million. Their minor fall in 2002 to $7,225 million was due to the September 11th occurrence (Graham, 2010). However, this is not anything contrasted to other foremost commerce that had lost so much more. Since then, numerous airline s and airports have filed for insolvency and have been compelled to close down. In detail, airlines are the only foremost US carrier to stay money-making since then; airlines were influenced through the poor financial situation (John, 2005). A number of components are compelling airlines to become more proficient. In Europe, the European Union (EU) has directed that authorities must not be permitted to sponsor their loss-making airlines. In several other countries, governments anxieties over their own investments and acknowledgement of the advantages of privatization have directed to a stepwise move of possession of airlines from the state to the personal area. In alignment to apply to potential shareholders, the airlines have become more effective and aggressive. There are other causes as to why there has been a boost in air travel. Firstly there has been a decline in employed time since 1971 producing and boost in free time. Emerging trends Fast rising volumes of traffic and estimations of continued expansion into the next decades has damage on the airport capability. Industries of Airbus, for instance, expects a standard yearly traveler traffic development rate of 5.0 percent throughout the next 20 years, which means that throughout this time traffic will raise by 168 percent. At the same time, tolerance of the public environmental effects of air traffic around airports like noise, air contamination and third party danger would emerge and have to be reduced. These contradictory styles of direct airlines, airports , organizations of air traffic control and the industry of equipment and aircraft to plan latest innovative ways and technologies of working aircraft and airports in order to gather both the capacity demands and the environmental limitations. Safety is not the objective of these developments; it is a mere constraint. Consequently, new hazards emerge and accessible dangers become complicated to maintain unless proper concentration is given to security features in this arrangement of rising trends. A latest aspect, third party danger, presented itself as a security distress in a rising number of European states. Airports are centers in the system of air transport. Therefore, their attendance causes a junction of air traffic over the region nearby the airport. For the people living in the surrounding area of an airport this involves unintentional experience to the danger of aircraft mishaps. Even though the possibility of a mishap per flight is extremely small (normally in the order of 1 in one million), local danger levels around airports are higher than one may think. The resulting yearly possibility of a mishap at a distinctive large airport is so much larger than the small possibility of being concerned in an aircraft mishap as a passenger. In addition, mishaps have a propensity to happen throughout the landing and take-off stages of flight and therefore close to an airport. Security information from researches describes that approach and landing stage mishaps account for a major part of fatal air transport mishaps. It can be observed that 82 percent of the accidents of world jet aircraft fleet 1988-1997 happened in these flight stages and recorded for 58 percent of every wounded. Historical information verifies that accidents of aircraft relating significant numbers of third party sufferers happen numerous times a year. Perhaps the best recognized example is the terrible mishap of a Boeing 747 in suburban Amsterdam in 1992. Latest mishaps happened in Taiwan (Taipeh), Russia (Irkoetsk), Paraguay and Zaire (219 3rd party victims). This environmental effect is of rising consequence to airports security liability and decision making on airport improvement and land-use development for airports. Airports play a significant function in the security of air travel. A current study of mishaps described that around 30 percent of these mishaps related at least one airport concerned aspect in the fundamental chain leading up to the accident. Airport related factors in this case are taken as those factors which are specific to the airport environment but are not necessarily owned by the airport (and can therefore include concerns like fog, snow, inadequate ATC guidance, etc.). The comparative value of airport fundamental aspects can be anticipated from their comparative frequency of incidence in fundamental series of mishaps in the dataset. To this end, the 76 various airport connected fundamental aspects discovered, were grouped into seven groups. These groups are:  · Marking and Lighting  · Taxiways and runways  · Information  · External dangers  · Ramp and apron and  · ATC procedures and operations  · Aerodrome Definition of social responsibility Social responsibility is the managerial obligation to take action that protects and improves both the welfare of society as a whole and interests of the organization means, not an end. To be socially responsible, the airline industry must have a clear, rational definition of social purpose, a system of setting priorities based on their social implications, and a structured, integrated approach to financial and social action (Graham, 2010). Implicit in social responsibility is a new definition of success for small business. Area of Social Responsibility When defining its sense of social responsibility, airline industries typically confronts four areas of concern: responsibilities toward the employees, environment, customers and its investors (John, 2003). Social responsibility towards employees In the best tradition of participative management, the airline industries invited all its employees to join in forging a new statement of values to avoid massive layoffs. These included teamwork, mutual respect, and professionalism, all duly inscribed on, among other places, coffee cups at office, so that, every time you had some coffee, you drank the values, too (Gurpreet, 2003). Employees needs must be met if the business itself is to prosper. Relationships of decency and trust are central to the achievement of the airline industries aim. Employees who in the form of dirty lavatories, lack of privacy or unjust wage structures, will be unwilling to contribute to the airline industries. Do people imagine a worker might be inclined to maximize his/her profits by stretching out the work to get more overtime or perhaps even a little Sunday double time? And just as employees need to believe in the companys commitment to treating them with decency, they expect to be treated justly and fai rly, not be used and then arbitrarily rejected. If they can strike a fair deal with people theyll come back for more. In the long run, airline industries will do that much better. Social responsibility towards investors The views of shareholders / investors might have encouraged responsibility in the airline industries. Stockholders want the company to make as much money for them as possible (Gurpreet, 2003). Their objectives differ and they are not confined to furthering the strictly economic role of companies. Indeed, recent developments in the area of ethical investment trusts would seem to indicate that many investors, like employees, are very keen to feel good about the firms in which they are involved. Certainly not all of them are simply after a quick financial return and they are often clear about areas like tobacco, alcohol, gambling, or arms into which they do not want to, put their money (John, 2003). Social responsibility towards customers Obviously, a company should act responsibility towards its customers and provide quality products and pricing product fairly based on consumer rights (Graham, 2010). Consumers have a right to safe products, most completed instruction and product testing. Consumers have a right to be informed about all relevant aspects of a product. Social responsibility towards environment Good environmental management can improve employee morale and help attract better quality staff, cut costs by eliminating waste and saving energy, and bring competitive advantage by putting the company at the forefront of technical and regulatory development. Firms in numerous other industries have also integrated socially conscious thinking into their production plans and marketing efforts. The production of environmentally safe products, for example, has become a potential boom area, designing products to be environmentally friendly. Sales of vegetable-based cleaning products, recycled paper products and all natural toiletries are a few examples. Approaches to social responsibility There are four approaches to social responsibility. First is obstructionist approach. Second is defensive approach. Third is accommodative approach. And fourth is proactive approach. Advantages of behave social responsibility Using social responsibility to spot out new markets isnt a matter of recognizing that these opportunities exist. That means we may have to be content with a smaller profit margin in exchange for gaining a new market, and never make the mistake of assuming that a less-affluent market is any less choosy than the well off when it comes to buying habits. Disadvantages of behaving in an unsocial manor Unethical and irresponsibility business practices towards customers can result in government fines and loss of clientele. Collusion occurs when two or more firms agree to collaborate on such wrongful acts such as fixed pricing. However irresponsible behavior towards investors means abuse of a firms financial resources. In such cases, the ultimate losers are indeed the owners who did not receive there due earnings or dividends. Companies can act irresponsibility by misrepresent ting company resources such as improper financial management, check kiting, insider trading, and misrepresentation of finances (John, 2003). Case study There is an example of Malaysia Airlines System (MAS) as a case study. As an employer, insurer, consumer and investor, MAS has studied that the social responsible can be reflected in its environment, community, workforce, human rights, health and safety, suppliers, customers and standards of business practice. Every member is committed to continuous improvement in the corporate social responsibility program and this encourages those business partners to strive for matching performance. Thus, they recognize that the business activities have direct and indirect impacts on the society in which is operating all the time and carried out some policies as below: a) Employee appreciation and prizes: MAS realizes that workers are inclined to enlist in demeanor that is identified and paid and bypass demeanor that is punished. The system of employing, chartering, encouraging, reimbursing and openly respecting workers all may be conceived to encourage business communal duty. b) Communication, education and training: MAS identified that workers will not be held responsible if they are not cognizant of its significance and supplied with the data and devices they need to proceed properly in bearing their job requirements. They announce the significance of business communal blame internally, encompass it as a subject in administration teaching programs, and supply managers and workers with decision-making methods that support them accomplish to blame results. c) Environment: MAS has an encouraging dream of a cleaner, smarter development in aviation which maximizes the affirmative advantages for humanity facilitating prosperity, regeneration, local and UK competitiveness, heritage exchange and communal addition while minimizing contradictory communal and ecological influences (David, 2009). d) Practices of business: It has habitually integrating schemes, inducements and pay schemes to make sure that sustainable improvement main concerns are echoed in day-to-day conclusions and procedures at each of the airports. By advancing presentation through objectives, externally audited goals, key presentation signs and by mirroring these main concerns in connections with enterprise suppliers and partners. By looking through MAS past accomplishments, they have struggled to assist the buyer better and have obtained worldwide acclaim from numerous unaligned associations for diverse facets of their services. Their peak administration group obtained an accolade from the Asian Institute of Management and the World Executive Digest, for its excellence in general administration and achievement in positioning itself in the airline industry. Going as far back as 1957, they obtained the Cumber Batch Trophy for no misfortune record (John, 2003). In year 1995, the Boeing Commercial Aircraft Company provided Malaysia a Pride in Excellence Award in accomplishing reliability excellence for the B737-400 fleet (David, 2009). Malaysia Airlines performance has a crucial function in projecting Malaysia as a favored and worth for cash tourist place traveled to through comprehensive on-going junction advancements with tourism in Malaysia at main markets to boost tourist appearances into Malaysia. Conclusion Malaysia Airlines can play a role of leadership in influencing the behavior of others, from business partners to industry colleagues to neighboring businesses. The entire company has been acting conscientiously and thinking long term because they recognize that eventually it is in everyones best interests to have as several companies as possibly honoring the expectations and requirements of responsibility of corporate social. It endeavors to control every procedure in a responsible approach, believing that sound and provable performance in relation to business social responsibility rules and practices is a basic element of business success.

Factors that influences consumer buying behaviour for fast food of mcdonalds

Factors that influences consumer buying behaviour for fast food of mcdonalds Introduction: In the recent period of time, there has been a hasty change in the food habits among UK residents. Fast food is in United Kingdom since medieval age, it wasnt exactly 21th century fast food but somehow similar to todays fast food. Fast food has become a popular trend of British culture as it is been carried a long way since Roman Empire. The basic roots of fast food are coming over from America but fast food was in different form in every country. It started getting into more of a worldwide business when globalisation started its role. It is now one of the multi-million pound industries which boost the UK economy. Fast food was revolutionised in 1902 with the introduction of the automat in America, where customers started to line up for readymade foods from the display counters or vending machines, paid and either left or ate the food on the premises. The restaurant which made its first move into UK was KFC in 1965 following the step, pizza hut came into the market in the year 1973 a nd then the global fast food leader McDonalds jumped in the year 1974. (Fast food nation, 2009) In 1940s, McDonald brothers introduced new concept of Speedee Service System which revolutionized the restaurant business, the benefits of their system was advertised as Imagine- No carhops-No waitresses-No Dishwashers-No bus boys-The McDonalds system is Self-Service (Scholosser,E, 2002..P20) In the past few years fast food has industry has faced many criticism, people are getting more concern about healthy diet. Government interaction in to business by banning the advertisement in certain places as well as many campaigns and programs are raised following the health awareness among the people. People are getting against the salted chips, high fat meals and many other issues. Why fast food is been considered and its expansion in United Kingdom Every day many people are consuming fast food and for many people it is a regular evening dinner. Fast food is developing and expanding immensely. A recent survey carried out by BBC world, 2008 shows that 45% of people in UK are likely to agree that they liked the taste of fast food too much to give it up, as well it also reveals that people in the UK are Europes highest fast food consumers which is due to the popularity of fast food chains in their favourites list. Consumers are having a growing desire for fast food and UK consumers trying to put McDonalds on the safer side in the economic crisis with sales in 2008 beat last years. The per head spending of UK customers in 2007 was  £82 in fast food restaurants which is predict to go higher and it will benefit chains like McDonalds and burger King. (Data Source: Caterersearch, 2008) The United Kingdom national statistics in 2009 (Kent K, 2009) suggests that unique nature of working force has increased due to the rise in numbers of women working as the employment pattern and style of student including international students and many foreign workers has been increased. According to Schlosser E (2002) with increased mobility and the expansion of urban areas people spent more time in their workplace. This was also paired with an increasing number of working women in the workplace thus leading to less time allocated for food preparation at home, supporting the argument Glazer F (2009) provides evidence in the research that working moms are more concerned about lack of time to prepare meals in compared to moms who is not working. In such a way, some three quarters of the family food budget was initially spent on fast food meals. Kent K (2009) This increase in the work force from migrant workers, foreign students as well the increase of women in work force has made a big contribution in fast food success, considering London as the location of this study it is clear that it is the most diverse city of UK with different cultures sharing their views and rituals in the city. The fast food has also been driven by multi-cultural people in London, London is considered as one of the most diverse city in the world and where a marketer can expect a diverse buying behaviour too. Many cultural and communities are based in London and the city also expect the numbers of tourist every day, all these different cultures have their unique taste. The multicultural customer has base has forced the marketers to include diverse taste and they have to consider the demand of their multicultural customers. McDonald has taken the initiative by promoting the different cultural promotional menu for example: Chinese food promotion and recently launched Indian chicken tikka wrap. The food giants are keeping the diverse customer base into consideration. Snackspot, (2009) The big brands are regularly expanding their menu in order to cope with the demand of the fast food customers. The fast food market is getting really high due to the number of consumers getting towards it; the industry is growing really rapid and fast food companies making better profits on daily basis. The branded fast food outlets and classic British cafes are the main chains in the industry, the restaurants and take away shops are deeply rooted on the British high roads and at popular shopping centres as well as retail parks, motorway and at many other places. Brandau M, (2009) a recent consumer research has found out that quick service restaurants have gained market through value of offering and premium menu which has helped them to go through post recession recovery, it is also been revealed that big fast food giants has gained a huge number of affluent customer base as well more typical fast food lovers in this economic downturn which is been named as barbell strategy. As the study show there has been a massive rise in the fast food consumption and every day it is more and more expanding. McDonalds is in the UK fast food market for long but recently there has been a fierce competition between Technology has played its role in almost every business. Technology could be used from improving business to attracting customers into the restaurant. Smithers R (2007) the idea of launching the free internet service in the McDonalds restaurants have helped the company in getting number of customers into the restaurant, Liddle A (2005) also they are teaming up with Nintendo to promote its portable Nintendo DS to attract the gamers, it is kind of great promotion which is building a brand image and it can attract many teens into the restaurant. The Wi-Fi concept has attracted many students which can help them in savings money on internet. The fast food giants have also started taking card payments few years back which proves to be a convenient method of payment ignoring the hassle of change, card payments has no minimum payment restrictions in many outlets and can be used also for 20p sweet chilli sauce in McDonalds. The card concept was upgraded by Barclaycard arrival of contactless t echnology which was successfully launched at McDonalds. Chain Store Age (2007) mentions that according to a survey conducted by Visa, the use of card payments in the quick service restaurants has been rated a more convenient experience, around 82% consumers agreed with the fact and 77% agreed that it pursues them buy whatever they desired because they were not limited to the cash in their wallets. Pietrykowski B (2004) mentions that fast food industry has faced many critics from many groups in the previous years and its still facing problems from the media and also from the government, in the year 1986 there was campaign started by an Italian which was named slow food movement, at present it comprises 77,000 individual members representing 48 countries, Slow food (1989) We are enslaved by speed and have all succumbed to the same insidious virus: Fast life, which disrupts our habits, pervades the privacy of our homes and forces us to eat fast food, so slow food is now the only truly progressive answer, Walsh B (2008) names this movement as the anti-fast food, anti-industrial and anti-agricultural movement. Whereas Pietrykowski B (2004:12) states slow food movement seeks the preservation of local foods and cuisines by creating and strengthening networks of social relations between consumers and makers. In return the fast food companies introduced healthy options in their menu ad ding fruits and nutritional information as well reduce salt to their food. Fast food giants are also keeping up the demand by expanding their menus and trying different promotional tactics. Fast food is considered as an easy key and recently with the added values to healthy food and also by adding organic ingredients and food to their menus; it is drawing attention to many new customers. Glazer F (2009) mentions that McDonalds recently launched the global moms panel to advice the company on issues such as balanced food and communications with the families as well as launched moms quality program insisting on the chains quality and safety standards, hence the food chain has taken a family step towards their products and launching such campaigns can create a better trust among their consumers. Sky News (2010), McDonalds has achieved this success by following these steps in to their business as well as their performance was aided by its superior value at every level of the menu, helpin g it to push up sales increased by double digits and full year profits growing up to 6% to  £2.83 billion. Life style impacting the fast food industry and cultural influence on fast food advertisement and its consumption London is been considered as one of the business capital of the world, similarly one of the most diverse city in the world too, hence the lifestyle of the city is much different comparing to other UK cities. Economist (2003) mentions that before when people needed fatty hot food, they had to cook it. So they had to spare time and energy, this has discouraged the consumption but now the mass preparation of fast food took away that concept, nobody has to make big effort and nobody has time. The lifestyle of Londoners is getting more and more hectic. The fast food trend has taken the effort of cooking out from the house to the giant fast food companies, people do not mind eating in trains, busses as long as it saves time. Londoners are getting into work more in comparison to previous years in London. Kent K (2009) The image above shows the different cities of United Kingdom, which shows London having the highest employment rate in the recent years and again, Economist (2003) the proportion of women going out to work is probably the main force pushing the time-saving trend, Britain is considered as a topper in convenience food league as well as the working women league. Within an increase in employment there has also been a change in the working hours of British people, Summerskill (2000) mentions that it is one of the main reasons of time poverty and fast food consumption in Britain. People are working long working hours possibly with few breaks and many doing antisocial hours (typical night hours), or they take second and third jobs to meet their own needs. In UK, one in nine workers do more than 60 hours a week, antisocial working hours and working extra hours are very common, especially in retail industry as many are getting 24/7. (Dailymail, 2008) A research conducted by Oxford Economics c onsultancy suggests similarly there has been rise in the income which has made the living standards in Britain better, the living standards were been calculated taking GDP in to consideration. Another lifestyle based factor is individualism, which is much common in London because of many foreign workers and students. Arndt M (2007) In general, the heavy consumption of fast food is a single man in his mid-20s who has a professional job that pays above average wages. Hence the lifestyle is much responsible for the success of the fast food market. Marketers need to consider many things when they start promoting a particular brand or product. As the world is not homogenous, there is a difference in choice even in the same culture. If we consider London, there are number of multi-cultural people living in the city. A company in order to get success cannot really rely on just one common culture. Rugman A (2001: 583) suggests that globalization does not, and has never, existed in terms of a single world market with free trade, cultural differences has divide the world into the triad blocks. In United Kingdom, Schiffman L, Kanuk L (2007) there is many different societies and culture residing in other term subculture. Subculture is set of people with distinct belief and behaviour, it differs from mere social grouping, is awareness of style and differences in style, language or other phenomena and more complex society. The fast food companies focus on particular subcultures in order to gain the market and to make the advertisement wo rk. Types of subcultures followed by companies in segmentation Schiffman L, Kanuk L (2007) McDonalds has used the concept of sub-culture by diversifying few of their London based restaurants into Halal restaurant, which is certainly a part major muslim community in London. Similarly KFC has followed the same step and has turned 74 out of 700 of their restaurants into Halal certified restaurants, their products are been approved by recognised Muslim association and certificate is been displayed at their restaurants (KFC, 2010). United Kingdom is a very diverse country and considering the fact about the different ethnic backgrounds, fast food companies run different events and food promotions in order to attract the consumer towards the brand and towards their product such as oriental menu taking Chinese into consideration and chicken tikka wrap attracting Indians and Pakistani. Furthermore McDonalds acts according to the location. McDonalds restaurant Location Segmentation steps Manhattan, New York The target customers are working class people coming for breakfast or lunch Maastricht, Netherlands Jakarta The target customers are families with children, with big playgrounds surrounded by swings, slides etc. The target customers are youngsters and yuppies. Ghauri, Cateora, (2005 P-22) In this competitive period of business, the fast food companies cannot do business without taking international business dimensions into the business. It not only helps to gain the local market but it also helps to gain success in the cross border trade. The marketing polices may be needed to change according to different market culture. Fast Foods heavy investment on advertisement Without a strong recognisable brand name a product is no more than a commodity, with out advertising there is no recognisable brand name. (Wright R, 2000 P-89) Consumer buying behaviour depends mainly on awareness and recognition which is achieved by advertisement. Advertisement can be consider as a way of communication, almost all advertisement contains a persuasive element of sales but it also creates brand and should also deliver a motive. (Sargeant A, Asif S, 2000) The above gives an idea how the advertisement is conducted and which factors are been consider when an advertisement is carried on. In UK, McDonalds identified the need of co-ordinated marketing and advertising policy, in order to gain the market, a company should find out what the customers want, develop products to satisfy them, charge them the right price and make the existence of the products through promotion. McDonalds is now the biggest single brand advertiser on British television. Promotional activities and special suggestive selling within the restaurant have a tactical role to play in getting people to return to the restaurants regularly. All franchisees benefit from any national marketing and contribute to its cost, currently a fee of 4.5 percent of sales. (The times, 2009) Consumer buying behaviour and Marketing Mix For a person to make a decision, a choice of alternatives must be available. When a person has a choice between making a purchase and not making a purchase, a choice between brand x and brand y, or a choice of spending time doing A or B, that person is in a position to make a decision. Consumer decision depends on many factors, human brain has two hemispheres one on left and another on the right. It is important for an advertisement to appeal to both sides. This means combining the rational dimension with the emotional component in your brand proposition. If they build a brand personality for a product that has both an emotional and rational appeal then they are appealing customer decision making. (Schiffman L and Kanuk L, 2004), a various index of repetitive purchase go after a similar buying decision which can be determined through brand, products and other factors. (Ehrenberg, 1988:28) Knowledge of consumer buying behaviour can help the companies to identify the needs of consumers better and that can lead towards market success. McDonalds is one of the worlds best familiar brands, and the consumer buying decision affects from many point of view. A repetitive purchase can only occur if the companies deliver consistently. A model of consumer buying behaviour is shown below which can be applicable to many companies and it helps to identify the consumer buying decision. The model describes the customers perception towards different purchase factors, these factors runs through consumers mind and after a while the consumer can come to conclusion of purchase or no purchase. The Times (2006) has conducted a study on McDonalds, The consumer takes number of external and internal factors before making the buying decision. Psychological factors are important, e.g. what image doest the product give or how the consumer feels when purchasing it (eg; pound saver menu for quick bitters). The advertisement of the product has to be linked with the realism of the consumer buying behaviour, if the advertisement matches with the consumers emotion then the result will be positive. It is called a black box model. (Kotler, 2004) Jill McDonald, Chief marketing officer of McDonalds UK reveals their idea behind the advertisement of McDonalds that they always try to be clear and confident about what they are and what they stand for and they convey in a simple language consi dering every single person to understand their message as McDonalds have always been customer oriented. Although (The times, 2006) it is essential that the messages which are being communicated by the company to their customers supports each other and there should be brief understanding keeping brand aspects in the communication and the target audience should be rolled out into action which may include purchase of a product or referring to their friends or family etc, the core concept in consumer buying process is to make customer feel positive about the product and (Achenbaum 1989, Lindsay 1990) it is quite fact that advertising is the best source in influencing the consumer buying decision and to build a brand image. (ODoneell C, 2005) Marketing mix supports companies marketing and business strategies whereas mix includes price, place, product and promotion, (Kotler P, Armstrong G, Wong V, Saunders J, 2008) mentions that the marketing strategy is linked with the marketing mix in order to achieve the companys marketing aims and objectives, the marketing mix acts as a toolkit in order to establish a strong marketing hold in the target market. A company may use one marketing mix to reach one target market and can differentiate second one to achieve the target market. (Pride W, Hughes R, Kapoor J, 2009) Schieffer R, Leininger E, (2008) McDonalds has successfully marketed their product to their targeted customers and has developed well positioned offerings for a manageable group of target segments, which is an effective marketing mix, offers (Baker M, 2003) a right product that meets the customers demand, that is of effective cost to the customer and it effectively delivers the quality and usage of the product which can be purchased with the utmost convenience. McDonalds customer profile is very diverse, family visits with their children for a treat, kids visits McDonalds for fun and youngsters visits considering price and the business customers may visits for a quick service. The specific target can be simple to communicate and the company can convey their message in an effective and efficient way. McDonalds have also tried to offer a product which is demanded by their customers, Jim Skinner, Vice president of McDonalds limited mention (Schieffer R, Leininger E, 2008) that McDonalds always focus on good customer service, quality product and hygienic cleanliness in their restaurants, as well as they always giving tips on management Mr. Skinner mentioned face the facts, listen to your customers because they will tell you what really matters. The company should always keep in mind that they are not the only one offering the product or service, a customer have a choice unless there the company holds a monopoly of particular product. McDonalds has to consider the competitors and taking them into consideration they have to revitalise their menu. The product life cycle is much important for a business to float regularly in profit and with good brand image. (Marketing, 2009) McDonalds has successfully launched new chicken legend burger chicken selects in competing with KFC for their spicy chicken strips, in their menu in the past year as well introducing fish fingers in their happy meal selection. The company also launched a range of healthy products including the organic milk and they introduce ethical standards for their coffee suppliers. McDonalds brand has gone to the basic of marketing communications; the new product launched is typically marketed through television and newspaper advertisement. (Justin M, 2009) following this mantra McDonalds always improve their products and services. In order to sustain in the market McDonalds has always been innovative in their products and it will continue to do so. In the below mention diagram the chicken legend and chicken selects product of McDonalds are the recently launched new product or innovation of McDonalds, where as one can say that their popular burger Big Mac is at the maturity stage. (Strategic Management, 2005) Similarly (Haines S, 2008) the price of the McDonalds product reflects the targeted customers decision to purchase the benefit; it represents a link between the pricing rationale to value, revenue volume of the product, McDonalds has always maintained their product when there is reduction in the price in order to compete in the market, usually many companies face the quality issue when they reduce the price of a particular product or services, as the customers mentally thinks that the reduced price products are not really same compared to original product quality. Kurtz D (2008) explains that the pricing objective varies from company to company, the main areas to consider in price objectives are probability objectives, volume objectives, meeting competition objectives and prestige objectives and McDonalds follows a mixture of this objectives into their business. References http://books.google.co.uk/books?id=P_ovoY2ZcbkCpg=PA255dq=marketing+mix+modelcd=1#v=onepageq=marketing%20mix%20modelf=false

Review of film Amadeus Essay -- Movie Film Composer Mozart Music Essay

Review of film 'Amadeus' Amadeus is a movie based on the career and the death of Wolfgang Amadeus Mozart in Viennese during the 18th century. Throughout the film Antonio Salieri tells his story of his growing hatred for Mozart that eventually led to his ?murder?. Through out the rest of the movie you can see where Salieri is getting even more jealous of Mozart. Although Salieri was inspired to become Gods instrument the music of that time ?classical era? did not revolve around the church or God unlike the Medieval and Baroque periods. But a good thing for Salieri was that most operas still did involve God. Through out Salieri's childhood his father had forbid him to become a composer because in so many words it was a waste of time for him. Normally a father dying would be something bad but being the man Salieri would turn out to be it is understandable that he would take it as gaining his freedom. He would become Gods instrument because he vowed to heath the word of God in his music. He eventually worked his way to be the court composer for Emperor Joseph II. The real jealousy came to him when his dreams were put on hold because Emperor Joseph II asked specifically for Mozart to compose a national opera for Viennese. Salieri found that young Mozart was in fact a prodigy at a concert thrown by Mozart?s patron, the Archbishop of Salzburg. To find that Mozart was in fact a prodigy disappointed Salieri quit obviously. It was in his mind that God had chosen Mozart to ...

Macbeth And Lady Macbeth Switch Roles :: essays research papers

Throughout the play "Macbeth", two of the main characters, Macbeth and Lady Macbeth gradually exchange roles. Macbeth is the kind, caring one of the two in the beginning, but completely changes as the play goes on, as with Lady Macbeth. She starts out as an evil, vicious beast. She is an evil woman who is bond and determined to kill Duncan. At the end of the play this character feels guilt for what she has done and has taken the personality, which was that of her husband in the beginning.At the beginning of the play Lady Macbeth speaks and shows her shows how cruel and heartless she really is; "And fill me from the crown to the toe top-full of direst cruelty". This shows she has no good in her, what so ever. Macbeth on the other hand, began as a good respectable character. When Lady Macbeth speaks of killing Duncan, he gives many reasons for reasons that he could not do so. Some of the reasons he gives in that speech are, that Duncan respects him, and trusts Macbeth. Duncan is also related to him by blood, and if he were to kill him he would never be able to rid himself of the guilt; wash the blood from his hands.At the climax of the play Macbeth makes plans to kill Banquo, with out Lady Macbeth, without anyone. This is a turning point because up until now, Macbeth was a respectable man, who didn't feel the need to kill for the crown. But suddenly he decides he is going to go against everything he has believed in up till now.As the play comes to an end, Macbeth has gone mad. He kills Macduff's whole family, all the children, and even the young, innocent babies. He loses control and doesn't care about anyone or anything. He is now pure evil.Lady Macbeth has now realized her wrong doings. She realizes how cold and dark she once was. She now wants to carry a candle with her at all times, to have the light with her always. She is now trying to get the stench of blood off her hands, but is unsuccessful. The guilt of murdering Duncan eats away at her.

The Human Eye

The eye is a rather small part of the body that makes up seventy percent of the humans total sensory ability. That is why we chose to describe the eye. Each part of the eye works together as a whole. Within and outside of the eye there are many working parts functioning around the clock.. The cornea is a very important part of the eye, but you can hardly see it because it's made of clear tissue. Like glass, the cornea gives your eye a window in which to view the world. The a cornea is a transparent tissue covering the front of the eye. The cornea covers both the pupil and he iris eye, and it is partially responsible to focus light. The cornea is part of the external structure of the eyeball. The external layer of the eyeball is formed by the cornea, and the sclera. The cornea is a dome-shaped structure. The cornea does not have any blood vessels that is why it appears clear. The cornea does have nerves. The cornea is the first and most powerful lens in the eye's optical system. The cornea is the first part of the eye to focus. When a ray of light hits the eye, the cornea is the first structure the light encounters. Then the light rays travel through your eye through a hole called the pupil. As light rays from an object enter your eye, they are bent inward by the cornea and lens. Light rays are focused through the transparent cornea and lens. Light rays focused by the cornea and lens produce an image on the retina that is upside down. The cornea is made up of five layers: the epithelium, Bowman’s layer, the stroma, Descement’s membrane, and the endothelium. The cornea obtains oxygen through absorption from the tear film layer, and from the aqueous humor. The tears that flow over the cornea help to keep it nourished and moist. {draw:frame} The anterior chamber lies between the iris and the back surface of the cornea. There are three chambers of fluid in the eye. The anterior chamber, which is between the cornea and iris. The posterior chamber, which is between the iris and lens. And, the vitreous chamber, which is between the lens and the retina. The fluid filled substance is called the aqueous humor. It is a clear fluid that fills the anterior chamber and the posterior chamber of the anterior cavity of the eye. The aqueous humor bathes the lens and gives nourishment to the lens. The aqueous humor is produced by the ciliary body. {draw:frame} {draw:frame} The colored part of the eye is called the iris. It controls light levels inside the eye similar to the hole on a camera. The round opening in the center of the iris is called the pupil). The iris is embedded with tiny muscles that dilate (widen) and constrict (narrow) the pupil size. The sphincter muscle lies around the very edge of the pupil. In bright light, the sphincter contracts, causing the pupil to constrict. The dilator muscle runs radically through the iris, like spokes on a wheel. This muscle dilates the eye in dim lighting. The iris is flat and divides the front of the eye (anterior chamber) from the back of the eye (posterior chamber). Its color comes from microscopic pigment cells called melanin. The color, texture, and patterns of each person's iris are as unique as a fingerprint. The pupil is the black circle in the center of the iris. But, the pupil is really a clear opening. The pupil appears black because the light which the pupil allows to enter the eye is absorbed on the retina and does not exit the eye. Light enters the eye through the cornea; it then travels through the opening called the pupil. Light then enters the eye's lens. The pupil changes size in order to adapt to the quantity of light rays that reach it. The pupils constrict in response to increased light, this makes your pupils smaller. When the pupils are smaller, it allows in as little light as possible. The pupil dilates in response to decreased light, this makes your pupils larger. When the pupils are larger, it allows in as much light as possible. The pupil size is determined by a reflex action that allows less light into the eye during bright conditions, so the person is not dazzled. The pupil size is determined by a reflex action that allows more light into the eye during dim conditions; this will make vision possible for the person. To see how this works, use a small flashlight to see how your eyes or a friend's eyes respond to the changes in brightness. The pupils will get smaller when the light shines near them and they'll open wider when the light is gone. {draw:frame} {draw:frame} {draw:frame} * Dilated* Pupil * Constricted* Pupil The lens is part of the internal structure of the eyeball. The lens is transparent. The lens is the flexible curved part of the eye that sits behind the iris and in front of the vitreous humor. The lens of the eye is made of mostly water and protein. Light which passes through the pupil opening, will nter the lens. The lens focuses light rays on the back of the eye. The lens' purpose is to focus images onto the retina. It works like the lens of a camera that records the picture. The lens turns the images upside down. Then the picture is transmitted by the optic nerve to the brain. In young people, the lens changes shape to adjust for close or distance vision. The lens changes shape when looking at objects at different distances to keep the images in focus. The lens changes its shape by bending. The adjustment of the lens of the eye is similar to the focusing of a camera. This adjustment of the lens is known as accommodation. As we become older adults, the lens gradually hardens, and it becomes harder for the lens to accommodate. {draw:frame} {draw:frame} The Ciliary Body and the Ciliary Muscle, separates the Aqueous Humor, the fluid and, the Anterior Chamber. The vitreous humor is located in the posterior chamber of the eye. The posterior chamber is a space behind the iris and it is in front of the retina. This space behind the lens is filled with a jellylike substance called the vitreous humor. The vitreous humor helps to shape the eyeball. As we age and get to be older adults, the vitreous humor changes from a gel to a liquid like fluid and it gradually shrinks and separates from the retina. {draw:frame} The retina is the innermost layer of the eye. The retina is made up of two parts: an optical part in the fundus of the eye that is sensitive to light, and a nonsensitive pigmented part that lines the ciliary body and iris. The light-sensitive neurons are arranged in three layers; the first layer is made up of rods and cones and the other two transmit impulses from the rods and cones to the optic nerve. The rods are sensitive to dim light of a variety of wavelengths, and the cones are sensitive to bright light of more restricted wavelengths and are responsible for color vision. Visual acuity is greatest in the central part of the retina. {draw:line} {draw:frame} {draw:frame} The retina is a stack of several neuronal layers. Light is concentrated from the eye and passes across these layers (from left to right) to hit the photoreceptors (right layer). This causes a chemical transformation of light to nerve impulse to the bipolar and horizontal cells (middle yellow layer). The signal is then transmitted to the amacrine and ganglion cells. This pattern of spikes determines the raw input from the eyes to the brain. The optic disc is a whitish spot on the retina. The optic disc is called the blind spot. The optic disc is the spot on the retina that the optic nerves come from. The optic disc marks the point where nerve fibers leave the eye. The optic disc lacks light sensitive cells. There are no sensory cells here that are why it creates a blind spot. The macula lutea is an irregular yellowish spot near the center of the retina. The macula lutea lies slightly below the optic disc. The macula lutea is part of the retina and it is the most light sensitive. The size of the macula lutea is 7mm or about ? inch. The macula lutea is responsible for our reading vision. It is this part of the retina that makes our vision 20/20. If you do not have a macula lutea, you would not be able to see. Cranial Nerve II, or more familiarly known as the optic nerve, is the nerve that controls the sense of vision. Without this the human race could not see, it acts as a passageway of the object you see, to be transferred as a nervous impulse to the brain. The part of the brain the nervous impulses are sent to is the visual cortex, this is a section of the brain where all of the information is processed. The optic nerve is formed out of axons. An axon is the long processes of retinal cells at the back of the eye. These join together to form the nerve, which exits the eyeball at a point called the optic disc. The optic nerve fibers, originate in the retina, then enter the optic nerve which again passes through the eye socket. This then heads to the optic canal, the opening in the skull which receptors pass from the eye to the brain. The optic nerve fibers the join together to form the optic charisma, this trade in fibers allows for binocular vision, they continue until it makes contact with the lateral geniculate. The optic nerve radiates back to the visual where the image is processed. To sum this up the optic nerve carries information to the brain from the eye. This concludes the internal mechanism of the eye. Next is a discussion of the external anatomy of the eye and component's surrounding it. There are three layers of the eyeball. The external layer of the eyeball is formed by the sclera, and the cornea. The sclera is the white part of the eye. The sclera is continuous with the cornea. The sclera is the outermost layer, and the sclera is the thickest layer of the eyeball. The sclera has the important job of covering most of the eyeball. The conjunctiva is a mucus membrane which covers the sclera that you can see through and lines the eyelids as the palpebral conjunctiva, and reflects or folds back over the anterior of the eyeball, as the ocular, or in some cases this can be called the bulbar conjunctiva. The bulbar conjunctiva only covers the white of the eye not the cornea. The ocular conjunctiva is very thin, blood vessels are visible beneath it, when irritated the eye becomes â€Å"bloodshot. † When the eyelids are shut a slit like space appears between the covered eyeballs and eyelids. When you are wearing contacts, the contact lies in the conjunctivial sac, this is where most eye medications are placed also. The conjunctiva's main job is to protect the eye from anything that may penetrate the eye. Certain eye problems that may relate to the conjunctiva include the inflammation of the conjunctiva which is called conjunctivitis_. _Pinkeye which is probably the most familiar to people living in America. Pinkeye consist of a bacteria or virus that is, in most cases , on your hands and you do not wash them then it is spread around the eye. All infections in this area are contagious. The sclera is also a supportive and protective layer of the eye. The sclera forms a tough shell that helps protect the inner structures of the eyeball. There are three pairs of muscles attached to the sclera. These muscles are named extra-ocular muscles. {draw:frame} There are six extra-ocular muscles on each eye. Each muscle has a different form of movement or function in the eye. The Lateral Rectus is the muscle that moves the eye outward. The Inferior Rectus muscle is the muscle that pulls the eyeball towards the ground. The Inferior Oblique muscle raises the eye, and pivots the eyeball outwards. The Superior Oblique muscle pulls the downwards and outwards, while abducting the eye. The tendon-like Trochlea, acts like a pulley which the superior oblique muscle passes through. The Superior Rectus muscle pulls the eye upwards and inwards. The Palpebrae Superioris muscle pulls the upper eyelid upwards. The Medial Rectus muscle moves the eyes inward horizontally. The Tendinous Ring is a band of rough, fiber-filled tissue, that holds the eye muscles in place. The second layer of the eye is called the uvea. The uvea contains many blood vessels and pigmented cells. The uvea is divided into three main sections: the choroid, the ciliary body and the iris. The choroid extends from where the optic nerve meets the eye-ball to the front of the eye, where it forms both the ciliary body and the iris. The third layer is the retina. The Lacrimal glands are located above each eye. The Lacrimal gland lies underneath the upper eyelid. The Lacrimal gland has the important job to produce tears. The Lacrimal gland continually produces tears that are distributed over the surface of the eyes. The tears drain through the Lacrimal canals into the Lacrimal sac and into the nose from the Lacrimal duct. The tears are constantly being made in the Lacrimal glands and through the action of blinking the tears drain. Every time the eyelid blinks, it causes tears to flow from the Lacrimal glands. The tears keep the cornea moist and provide oxygen to the cornea. The tear production increases when you cry or if the eye is irritated by foreign particles. The Lacrimal gland also produces other protective fluids onto the surface of the eye. draw:frame} Cranial Nerve III, the oculomotor nerve controls the eye muscles, or two-thirds of them anyway. This Nerve Mainly carries the motor fibers to the eye muscles, this controls the movement of the eye and where the eye's position is located. The oculomotor contains fibers from the nervous system which constrict the pupil and also alter the lenses' shape. The oculomotor nerve originates midbrain, is part of the brainstem and leaves the cranial cavity through the eye socket into the superior orbital fissure. From the superior orbital fissure, this is split into two parts, the superior and inferior divisions. Problems associated with the oculomotor nerve, are damage to the nerve, in which case all but two of the eye muscles will be paralyzed, occasionally when this happens the eyelid will drop. Also the eye will not move sideways. Cranial Nerve IV, the trochlear nerve, only supplies one muscle for movement to the eye. This nerve transmits both the motor information of the eye and the sensory information of the eye. The nerve originates about midbrain, around the brainstem and finally ends up through the center of the eye socket into the superior orbital fissure. The trochlear nerve controls the muscle that moves the eye up and down. Cranial Nerve VI, is the abducent nerve, this leads to the lateral rectus muscle in the eye. The abducent nerve contains both motor fibers and sensory fibers. The fibers of the abducent nerve originate in a part of the brainstem called the Pons. The nerve arrives at the eye socket then passes through the superior orbital fissure. This moves the eye out to the side. The eye is a important and fascinating organ. It is made up of many different kinds of tissues. Each has a very important and individualized function. It's many parts work together to form the phenomenon of sight. This allows us to perceive the world.

Cultural Diversity and Literacy Essay

The student body of academic institutions for higher learning is becoming more and more diverse in culture and social groups through the past generations (Koester & Lustig, 1991; Powell & Collier, 1990). Therefore, educators must bear in mind this diversity factor and modify teaching procedures accordingly. I am a Korean intending to effectively teach piano lessons to high school students. I should be able to help my students appreciate the piano, play the piano excellently and make them become highly literate in music. In a paper presented at the Central States Communication Association Convention in Oklahoma City in 1994, Goulden suggests that the primary goal of academicians and educators in facing cultural diversity should be to â€Å"provide an opportunity for learning that is beneficial for students (1994 5). This primary goal is supported by more straightforward objectives. Goulden also states that the students must be prepared for life after graduation (1994 5). Therefore, the end goal should be to help the students, however diverse their cultures are, to stand proud for his culture and for what he has learned. As a piano teacher, I think that aside from teaching my students to simply play the piano, I must also impart on them the value of cultural pride, as well as the importance of understanding people on other cultures that will also be part of their audience in playing the piano. Even as music is considered a universal language, it will help my students to play with passion to be able to transcend cultural differences. It is my goal as a teacher to help them achieve that level of effectiveness. Of course, in effect, I intend to teach piano lessons to my students to help them achieve high literacy in music. Literacy is a much broader concept than most people think. While others believe that literacy is all about learning to read and write, other academicians believe that literacy means deep understanding of subject matters, such as music. To contrast, literacy is what broadens a person’s world, while illiteracy shrinks it down (Needlman, 2001). I think a person’s imagination has a lot to do with literacy. For example, if my students could learn to read the notes and play the piano effectively, I will be happy as a teacher. However, if my students will play the piano and experiment with musical notes on their own, then, I will be happier; because it means that I am imparting high litereacy to my students. If my students can use their imagination and deepen their appreciation and interest in music, I will say they are highly literate in music. As a piano teacher, I think I need to know more than just my students’ level of skills. For instance, I need to know more than just the notes that they can or cannot read, or the music pieces that they can or cannot play. To be able to reach their mind and help them become imaginative, productive and highly literate in music, I must be able to overcome any possible barrier in reaching their mind. I think my students must have fun while learning with me. Culture can be a barrier to literacy, if there is no connection between teachers and students. For instance, some of my students might be intimidated by the fact that we Koreans, are highly interested in music, and it is an integral part of our lifestyle. I, as the teacher, should tell my students, that even if a certain culture appreciates music more than a certain other culture, it does not mean that the others cannot learn. In fact, on the contrary, we would be very happy to share our passion with the rest of the world. I think that as a teacher, I must understand my students, as well as their families and their communities so I can help them to reach a high level of literacy. Through understanding, I can better relate to my students and establish a connection with them so they will feel that they are a part of me, and I am a part of them, and we must celebrate our cultural diversity because it is beautiful to see that we are different, and yet the same. We have different cultures, but we also have the same interest and the same goals. Between my students and me, our main similarities should be our interest in learning together, learning from each other, and learning about music. For me to have a better understanding of the underlying effects of the increased cultural diversity of my students, I should look into the manners in which students from diverse social and cultural units experience music. I think I should educate myself and equip myself with knowledge about my students varied culture before I can become truly effective in reaching out to them, to make them excellent piano players. Culture is not a static phenomenon passed exactly as it is down from one generation to another; in fact, culture is a dynamic, flexible, breathing environment to which every person makes a contribution. In this case, education, specifically music education must be about helping every student find his passion in music, and help him nourish that passion so he could be prepared to make his own contribution to his own culture (Shuler, 2001). If I could help a student with a culture different from mine develop a contribution to his own culture, then it will also be my achievement as a teacher. References Goulden, N. R. (1994). Curricular Changes, Communication Skills, and Cultural Diversity: The Next Generation, 5. Koester, J. , & Lustig, M. (1991). Communication curricula in the Multicultural university. Communication Education, 40, 250-254. Needlman, R. (2001). What Is Literacy? Retrieved November 15, 2006 from http://www. drspock. com/article/0,1510,5133,00. html Powell, R. , & Collier, M. J. (1990). Public speaking instruction and cultural bias: The future of the basic course. American Behavioral Scientist, 34(2), 240-250. Shuler, S. C. (2001). Music and education in the twenty-first century: A retrospective, Arts Education Policy Review (Vol. 102, pp. 25): Heldref Publications.

Nuclear Arms Race

UNIT 9 ARMS RACE AND THE NUCLEAR THREAT Structure Objectives Introduction Background to the Nuclear Arms Race 9. 2. 1 9. 2. 2 9. 2. 3 The Beginning : Birth of the Nuclear Arms Race The Manhatten Project Rationale for the Arms Race in the Post War Period The Nuclear Arms Race : How it is different from all the Previous Arms Races in History 9. 3. 1 9. 3. 2. 9. 3. 3. The Trinity Test Hiroshima and Nagasaki Bombings ‘New York Times' and the Trinity Test Different Phases of the Nuclear Arms Race in the Post-War Period 9. 4. 1 9. 4. 2 9. 4. 3 9. 4. 4 9. 4. 5 9. 4. 6 9. 4. 7 9. 4. 8 Fear of the Soviets and Communism 945 to 1953 : Period of US Monopoly 1957 to 1968 : Period of ‘Missile Crisis' and the ICBM Race 1968 to late 1970s : Period of MIRV and ICBM Race 1981 : Reagan's Strategic Modernization Plan 1983 : Militarization of Space-Reagan's Star War Programme 1984-1991 : Nuclear Arms Race in the Gorbachev Era and the last days of collapsing Soviet Union. 1991 to 1997 : Nuclea r Arms Race after the Collapse of Soviet Union Nuclear Arms Race in the Third World and South Asia 9. 5. 1 9. 5. 2 95. 3 9. 5. 4 Acquisition of Nuclear Capability by China and start of Arms Race in South Asia India, Pakistan and the Nuclear Arms Race Domino Theory' in South Asia General Complexion of Arms Race in South Asia Let Us Sum Up Key Words Some Useful Books Answers to Check Your Progress Exercises 9. 0 OBJECTIVES This unit deals with Arms Race and the Nuclear Threat in the present day world. After studying this unit, you will be in a position to: understand the background to the nuclear arms race; explain how the nuclear arms race is different from all the previous arms races; discuss the different phases of the nuclear arms race in the post-war period; and emarnine the nuclear arms race in the Third World and especially in South Asia. . 1 INTRODUCTION This unit on ‘Arms Race and Nuclear Threat' is part of Block 3 which deals with what is called the ‘Cold War Per iod'; i. e. , after the Second World War and the emergence of what is termed as Superpower Dominance. In Unit &'World War 11: Causes and Consequences (Emergence of Super Powers)' you have read about how the USA and the USSR emerged as Superpowers in international politics after the end of the Second World War.In Unit 7 : ‘Cold War: Meaning, Patterns and Dimensions', you have learnt how the collapse of Germany and its allies in 1945 led to the emergence of what has been termed as ‘Cold War' between the-two main powers of the post-1945 international order * i. e. USA and USSR. The Non-Aligned Movement (NAM) which was dealt with in Unit 8 of this block was a consequence of the cold war power bloc politics. One thing common to the post-1945 international order as well as the pre-1945 world was the arms race. When studying about World War I and 11, you would have surely read about the arms race which was both quantitative and qualitative in character.It would also have been n oticed that the arms race in its qualitative dimension in both the world wars was itself one of the greatest causes of the two wars. From the invention of dynamite by Sir Alfred Nobel of the Novel Industries in the First World War period, to the invention of rockets by Germany in the Second World War, it is the search for the ultimate weapon which could win all wars that constituted the greatest push for the arms race. In this madness scientists, nations, people, soldiers, politicians all fell prey and ended up only killing greater and greater number of civilians.In the present unit, we will concentrate on the arms race in the post-1945 international order. As has been stated before, this quest for a qualitatively more destructive weapon was the greatest motivating factor in bringing the world a step closer to war, be it the First or the Second World War. The key difference in the arms race before 1945 (i. e. in the interwar period) and after 1945 was the nuclear dimension. Prior to 1945, all the arms races in human history never confronted what is now popularly known as the ‘Nuclear Threat'.After 1945, the arms race that humanity got engaged in became the greatest living threat to life itself as known on this planet. The difference lies in one single qualitative step in the arms race, and that step was the creation of the Atomic or Nuclear bomb in 1945. Thus, from 1945 the arms race we discuss in this Unit, remained no longer ‘conventional' but acquired a nuclear character and from then till today, man is engaged in an arms race that puts both parties who engage in it, under a perpetual ‘Nuclear Threat'. 9. B ACKGROUNDTOTHENUCLEARARMSRACE 9. 2. 1 The Beginning : Birth of the Nuclear Arms Race The nuclear arms race between the superpowers began initially in the pre-second world war period between the Germans and the Allied Powers. It was in the context of this conflict prior to the Second World War that in 1938, at the Kaiser William Institut e in Germany, Otto Hann and Dr. Fritz Steersman first split the atom. Lise Meitner and Otto Hann later declared this successful splitting of the atom amounting to a nuclear fission.It was a matter of coincidence that at this juncture in history, the greatest minds working on the ‘atomic problem' were Jews and that too, German. Hitler's rapid anti-Semitism during the period sent most of these great minds in Germany rushing to the USA where they were welcomed. These fleeing scientists informed the American military who were closely monitoring events in Europe. There was widespread apprehension that Germany might be the first to produce the nuclear bomb as the knowledge of splitting the atom was already available to it.Albert Einstein too was one of the refugees and he knew fully the significance of this discovery, for it was he who first unlocked the secret power of the atom to the modern world. He warned the President of the United States about it. 9. 2. 2 The Manhatten Project T he Americans under President Roosevelt were fully aware of the international implications and so began the race to build the bomb first. Roosevelt commissioned what was the top secret ‘Man Hatten Project', the biggest scientific effort ever made costing 2 billion dollars under Maj. Gen.Leslie Groves to construct the atomic bomb in a record time. Robert Oppenheimer, Enrico Fermi, Herbert York, Edward Teller, Hans Beth and a host of other scientific luminaries were involved in the production of the first three nuclear bombs. The interesting aspect of this bomb construction was that though the initial enemy was Germany, slowly the real enemy for whom the bomb was constructed turned out to be the Soviet Union. In fact, Gen. Leslie Groves stated that he had no illusions that Soviets were the real enemy. -This fact is critical to an understanding of the post 1945 world.Arms Race and Nuclear Threat 1 Cold War Period 9. 2. 3 Rationale for the Arms Race in the Post War Period German y, the first nation with whom the US engaged in the N-Arms race surrendered in May 1945 and all its nuclear facilities were destroyed, thus ending the first phase of an incipient nuclear arms race. Despite this the arms race had to continue once the weapons had been built. A new enemy across the horizon was discovered Communist Soviet Union. The fear of communism was ideologically fueling the furious pace of the A-Bomb construction. In that sense the emerging U. S. ilitary-industrial complex was not wrong. Communist USSR was definitely the biggest power confronting USA and its western allies once Germany collapsed. The world was definitely getting divided into two camps, the capitalist and the socialist and Europe including Germany was its first victims. The Allies could not do anything about it. Something had to be found, a new ultimate weapon which could stop and possibly destroy the march of communism. That something designed initially for fascist Germany and used for experimenta tion in Japan was to be probably used later against the Socialist Soviet union.This was the underlying ideological war cry in the American establishment and the subtle reason for continuing the arms race into the post-Second World War world era. The discovery of the split atom gave confidence to the United States that it could fight the ‘cold war' or ‘iron-curtain' that Winston Churchill said had descended over Europe. It was an indication that the new war after 1945 would be fought against the USSR. Check Your Progress 1 Note : i) Use the space given below for your answers. ii) C heck your answer with the model answers given at the end of the unit. 1)Examine the background to the nuclear arms race. 2) What are the rationale for the arms race in the post-war period? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ s 9. 3 THE NUCLEAR ARMS RACE : HOW IT IS DIFFERENT FROM ALL PREVIOUS ARMS RACES IN HISTORY 9. 3. 1 The ‘Ikinity Test Of the three bombs constructed, the first was tested on July 16, 1945 at Alamagordo, New Mexico. It is known as the Trinity Test. The successful Trinity Test heralded the birth of the Nuclear-Bomb in human history and the dawn of the nuclear age.Neils Bohr, the famous Danish Physicist, prophetically observed the insetting arms race and its qualitative difference. In a letter to Resident Roosevelt on 3 July 1944 he mentioned that a weapon of unparalleled power was being created which would completely change all future conditions of warfare. Some scientists anticipating the arms race between the US and the USSR urged the American Government to share the nuclear secrets with Soviet Union and thus prevent an arms race. However, it is obvious that the scientists were too naive of the game of politics as well as the intensity of international politics.Such advice was never heard, and the race was continued in the hope of victory. To the military desperately looking for a way to deal with the Germans, the Japanese qnd finally the Soviets, the Trinity Test held out hope that they could win. 9. 3. 2 Hiroshima and Nagasaki Bombings Two more historical events, however, finally sealed the destiny of mankind. They were the dropping of the two remaining untested nuclear devices, i. e. , the 5 ton uranium bomb on Hiroshima on August 6 and on Nagasaki on August 8, 1945.Over 250,000 people died in both the cities and the ‘living corpses' who survived bled incessantly and were blackened with their skins hanging in shreds, their hair scorched to the roots. Most were totally naked, their clothes burnt from their bodies. George Bernard Shaw observed in ‘Man and Superman' about the art of killing that man, â€Å"out does nature herself †¦ when he goes out to slay, he carries a marvel of mechanism that lets loose at the touch of his finger all the hidden molecular energies and leaves the javelin, the arrow and blow pipe of his fathers far behind†. Hiroshima and Nagasaki exemplified that. . 3. 3 ‘New York Times' and the ‘Ikinity Test It would be easier to comprehend the qualitative significance of nuclear arms race if we take note of two observations made at the time of the Trinity Test. The ‘New York Times' reporter who witnessed the test observed â€Å"†¦ a light not of this world, the light of many suns in one. It was a surprise such as the world had never seen, a great green super can climbing in a fraction of a second to a height of more than 8,000 ft, rising even higher until it touched the clouds, lighting earth and sky all round with a dazzling {uminosity.Up it went, a great ball ,of fire about a mile in diameter, changing colours, as it kept shooting upward, from d eep purple to orange, expanding, growing bigger, rising as it was expanding, an elemental force freed from its bonds after being chained for billions of years. For a fleeting instant the colour was unearthly green, such as one only sees in the corona of the sun during a total eclipse. It was as though one had been privileged to witness the birth of the world to be present at the moment of creation when the Lord said: â€Å"Let There Be Light†.Robert Oppenheimer perhaps summarized in one line the destiny of modern man's predicament vis-a-vis his own creation, when he quoted the Gita to exclaim â€Å"I have become death, destroyer of worlds†. The roar created by the explosion at Alamagordo could be heard 50 miles afar and the pillar of fire that the New York Times reporter talked about rose 6 miles into the sky. These observations of the Trinity Test and the dropping of the bomb at Hiroshima and Nagasaki sum up why the arms race mankind got caught in after 1945 is totall y different in its complexion from all the previous arms races in human history.The sad part, however, for any idealist scholar of international relations is that despite these evidences of destruction, the arms race continued with greater vigour and vengeance. Arms Race and Nuclear Threat Cold War Period Check Your Progress 2 Note : i) Use the space given below for your answers. ii) Check your answer with the model answer given at the end of the unit. 1) What is the Trinity Test? 9. 4 DIFFERENT PHASES OF THE NUCLEAR ARMS RACE IN THE POST-WAR PERIOD 9. 4. 1 Fear of the Soviets and CommunismIt was the Trinity Test on July 16, 1945 that truly sparked off the nuclear arms race between the US and the Soviet Union. Despite the horror of Hiroshima and Nagasaki the race never stopped. ‘The second fact that fuelled the nuclear arms race was the Soviet Communist enemy. This was, in fact, testified to by Gen. Leslie Groves who said he had no illusions as to whom the bomb was really bein g built for, i. e. , the Soviets. The ideological, political and military threat to capitalism by rising communism had to be dealt with. The discovery of the nuclear bomb was truly the biggest boost to the arms race.United Kingdom followed US-Soviet acquisition of the bomb in 1952, France in 1960 and China in 1964. The nuclear arms race passed through the following phases, they cannot be clearly distinguished from each other. 9. 4. 2 1945 to 1953: Period of US Monopoly During this period, the United States first enjoyed a total monopoly until 1953 and then, nuclear superiority. In this phase, the US territory was regarded as a sanctuary because the Soviets did not have any reciprocal delivery capability to reach the American targets from USSR.The United States, on the other hand, could attack the Soviet targets from American bases in Western Europe. 9. 4. 3 1957 to 1968 : Period of ‘Missile Crisis' and the ICBM Race T he monopoly enjoyed the US during the first phase was broke n when the Soviets successfully tested the ICBM in 1957 creating what has been called the ‘Missile Crisis' in America. The advent of ICBMs shifted the focus of the nuclear arms race to strategic weapons; i. e. Inter-Continental Ballistic Missiles (ICBMs), Sea Launched Ballistic Missiles (SLBMs) and strategic or inter-continental bombers which provided the strategic tripod.In 1967, USSR tested what is called a Fractional Orbital Bombardment System. This accelerated the qualitative dimension of the nuclear arms race further into space. 9. 4. 4 1968 to Late 1970's : Period of MIRV and ICBM Race T he third phase in the nuclear arms race began when the American delivery technology took a gigantic leap by introducitfg what is called the Multiple Independently Targetable Re-entry Vehicle (MIRV) capability in their ICBMs in 1968.This meant that now one single l CBM could carry many small nuclear warhead fitted missiles which on reentering Soviet airspace would go in different directio ns hitting many targets. MIRV marked a tremendous exponential upgradation of the arms race. This sent shivers down the Soviets who, however, mastered the technology by 1974. During this phase, the Soviets deployed two other weapon systems. First, the Anti-Ballistic Missile (ABM) system in 1968 and second, the first Anti-Satellite (ASAT) missile and warhead, thus ensuring that the arms race went on.Check Your Progress 3 Note : i) Use the space given below for your answers. ii) Check your answer with the model answers given at the end of the unit. 1) Briefly examine the period of US Monopoly in the Arms Race. . 2) Describe the efforts made by the erstwhile Soviet Union to break the US Monopoly in armaments. 9. 4. 5 1981 : Regan's Strategic Modernization Plan The next major technological tussle took place between the two Superpowers over the MX-Missile. On October 2, 1981 President Regan announced a strategic modernization plan at an estimated cost of $ 160 billion.The weapons systems planned included : (i) Missile Experimental or MX missle : 100 of these were to be built; (ii) B-IB Bombers : 100 of them to be built; (iii) STEALTH Bombers that are radar resistant by 1990s; (iv) TRIDENT-I1 D-5 missiles-one per year between 1983 and 1987; (v) Command Control and Intelligence system (C,I) to be modernized; (vi) NAVSTAR Satellite global positioning system; (vii) Encapsulated dormant missiles; (viii) TERCOM for precision guided cruise missile; an advanced communication system; (ix) Global Positioning System (GPS) for guidance of the ICBMs during the boost phase; (x) Route encrypted comunications to missiles or launchers; (xi) slackwire buoys radio reception by submarines; (xii) Fuel-Cell propulsion. 9. 4. 6 1983: Militarization of Space-Reagan's Star Wars ProgrammeThe militarization of space began from 1958 and since then, over 2219 satellites-military and civilian have been launched by t'he superpowers and other nations, and 75% of the satellites launched have been f or surveillance and military use, thus clearly violating the Space Treaty of 1967. On March 23, 1983 President Reagan announced the Strategic Defence Initiative (SDI) popularly called ‘Star Wars' Programme costing 1 trillion dollars to raise the militarization of space to a qunlitatively rlcr; high. The aim being to build both a ground based and space based Ballistic Missile Defence (BMD) to protect US territory against Soviet strategic missile attacks.Theoretically, the SDI programme, was supposed to be an alternative to the Mutual Assured Destruction or MAD dogma as it would provide Mutual Assured Survival. It was thought the render nuclear weapons obsolete be relying on three new types of nonnuclear weapon systems. These were : Arms Race and Nuclear Threat Cold War Period i) Kinetic Energy Weapons ii) Directed Energy Weapons and iii) Microwave Energy Weapons All these weapons were based on various types of chemicals, electromaphetic forces. and x-rays and lasers. The SDI pr ogramme did not take off for many reasons. They being: a) It was too expensive. b) It was not a sure technological venture, in the sense that it was far too complicated and thus not feasible. C) T he Soviets could easily render SDI ineffective by building a counter SDI. ) Reagan never consulted his European NATO allies and infact, surprised them by his announcement thus creating opposition to the programme in Europe. e) Reagan by signing the Intermediate Range Nuclear Forces Treaty (INF) completely ended the political rationale of the SDI programme. f) In the USA itself, in the Congress and the Senate Foreign Relations Committee, both the Republicans and the Democrats were of the opinion that they would not allow SDI to pass at any cost and thus, damage the Anti-Ballistic Missile (ABM) Treaty of 1972. Thus, they rejected SDI as otherwise it would have meant that the ABM Treaty alongwith SALT I and I1 would be nullified.Same would be the fate of START negotiations thus destroying the whole edifice of arms control and the start of an unbridled nuclear arms race. Added to this, many important scientists in USA, important people like James Schlesinger, former Secretary of Defense Mc-George Bundy, cold warriors likc George F. Kennan and Robert McNamara, former Secretary of Defence Harold Brown and a host of other people opposed the very fundamental logic of SDI that it would make the world safe of USA by removing the stability provided by the MAD capability of both the superpowers. Later on, the sweeping changes initiated by Michael Gorbachev within the USSR vide ‘Glassnost' and ‘Perestroika' and allowing democracy in Eastern Europe ended the whole logic of SDI. Check Your Progress 4 Note : i)Use the space given below for your answers. ii) Check your answer with the model answers given at the end of the unit. 1) What were the main cornponcnts of US President Ronald Reagan's Strategic Modernisation Plan? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2 ) What were the reasons for the criticism of Regan's S DI P r o g r a ~ r i ; ~ , ~ ! 9. 4. 7 1984-1991: Nuclear Arms Race in the Gorbachev Era and the Last Days of Collapsing Soviet UnionBy January 1985, due to the damage already done by SDI of Ronald Reagan, massive rearmament programmes were on the both the sides, and the future direction of the arms race was dependent upon the two superpowers. The arms race was on at three levels of nuclear weaponary, i. e. ,-space weapons, intercontinental weapons, and intermediate nuclear weapons. The US position on militarization of space through SDI really put the arms negotiation in difficult state. The Soviet Foreign Minister Andrei Gromyko said, â€Å"If there were no advancement on the issues of outer space, it would be superfluous to discuss the possibility of reducing strategic armaments. † The US in 1984 had a massive programme for rearmament of many types of weapon systems.The rearmament programme of USA consisted of more Sea Launched Ballistic Missiles (SLBMs); about 800 more nuclear warheads to be fitted on sea and air delivery systems; MX missile testing; Midgetsman Missiles; the eighth Trident submarine fitted with more accurate SLBMs and 100 B -lB bombs. On the Soviet side, in 1984-1985 the rearmament meant rearmament of all Soviet SS-17s SS-18s and SS-19s into the MIRV ed mode, a new TYPHOON class submarine and testing a new type of more accurate SLBM. There was a reported attempt to make 40% of Soviet ICBMs on the movable mode instead of the existing 25% and all 243 Intermediate Range Ballistic Missiles (IRBMs) were to be deployed. All in all, 1984-85 was a period of massive rearmament of all weapon systems.In 1985-86, the picture as regards arms race was the same. There was no restraint. The only hope that some kind of arms control was possible was generated by the November 1985 summit meeting at Geneva between President Reagan and General Secretary Gorbachev where both in a joint statement stated that, â€Å"The sides †¦. have agreed that a nuclear war cannot be won and must never be fought. † They also agreed to hold summit level meetings in 1987 and 1988. These words were an indirect admission by USA that the SDI was not workable. In other words, it recognised as unfeasible that the MAD doctrine could be replaced and a limited nuclear war waged by militarizi ng space was recognised as unfeasible.Apart from this, there was little progress in the talks on arms reduction in Europe. As regards the nuclear arms race in 1986-87, the situation was still more or less the same except that there was a little movement towards arms control. The US put its first MX ICBM and B-1B bomber on operational position and on a 24 hour alert. Deployment of Pershing I1 missiles and SS-20s continued in Europe. However, certain positive developments took place which definitely halted the arms race in the long run. First, the 27th CPSU Congress in February 1986 decided on Perestroika (Restructuring of Economy), Glasnost ( Openness and Democratization) and reversal of military confi. ontation in Europe and opening up of Eastern Europe.Second, the Raykiajavik summit on 11 and 12 October 1986 declared that a nuclear war could never be won and should never be fougkt. Third, within the USA a tattered Reagan's economy and the Senate's opposition to SDI hit US arms race plans. Fourth, there were differences between USA and its NATO Allies who were never consulted on SDI. Thus, though the arms race went on in 1986-87 it was definitely going to end soon. As regards 1987-88, on December 8, 1987 the Intermediate Range Nuclear Forces Treaty (INF) was signed for the elimination of all intermediate and short range missiles. The agreement required the USA and USSR remove 2695 intermediate range GLBMs with a range of 1 000 to 5500 kms. It also envisaged the removal of GLBMs short range i. e. , 5 00 to 1000 kms.USSR agreed to remove 1836 missiles while USA removed 867 missiles. The INF Treaty saved the ABM Treaty from being neutralised by SDI, because with this treaty the rationale for SDI became even weaker and Reagan found it very difficult to push the matter in the Congress as well as with US public. In this sense, it saved the world from another dangerous dimension of arms race i. e. , the space opening UP. 1988-89 was another significant year as it too had something to show in terms of peace. Arms Race and Nuclear Threat Cold War Period 1988-83 can be characterised as the year of settlement of disputes in Afghanistan, Namibia, Iran-Iraq War, Israel-PLO and South Africa.It was also the year Gorbachev announced at the UN, unilateral reduction of Soviet troops and armaments in Europe amounting to 40% reduction of Soviet tank divisions and 50% of Soviet tanks deployed in GDR, Czechoslovakia and Hungary. This was a very significant political and military move as regards the continuation of conventional and nuclear arms race in Europe. 1989-90 can be characterized as the Year of Europe. By the end of 1989, almost all Soviet Allies in Eastern Europe and Central Europe except Rumania and Albania were free. In August 1989, the first non-communist government got elected in Poland. By November 9, 1989, the Berlin Wall had crashed.Elections also took place in Hungary, GDR and Czechoslovakia. On 29 December 1989 Vaclav Havel took over as the President of Czechoslovakia. At the Malta summit in December 1989, President Gorbachev showed readiness to regulate further and move ahead on the START process. Gewge Bush, the US President, hesitated a bit though he committed US towards a Chemical Weapon Ban and the required agreement in the future. 1990 was a year full of events. While Europe and the two superpowers were moving towards peace the Gulf was in flames with the invasion of Kuwait by Iraq on August 2, 1990. Apart from this, in 1990, the WARSAW Pact was dissolved on 3rd March.On June 1, 1990, US and USSR signed a treaty on the destruction of and non-production of chemical weapons and on multilateral measures to ban chemical weapons. It was decided that by 31 December, 1992, all chemical weapons in the world would be destroyed and' only 5000 tons of agents would be kept. Then, the membership of the Missiles Technology Control Regime (MTCR) expanded. On November 20, 1990 there was the Treaty and a Joint Declaration of Conv entional Armed Forces (CFF) forever reducing the nuclear threat in Europe. Check Your Progress 5 Note : i) Use the space given below for your answers. ii) Check your answer with the model answers given at the end of the unit. 1) What were the salient features of the Nuclear Arms Race in the Gorbachev era? 9. 4. 1991 to 97 : Nuclear Arms Race after the Collapse of Soviet Union 1991-92 was a historic year in the sense that due to the collapse of USSR, the enemy that fueled the arms race for US militarists broke up into 14 new states. Yugoslavia also broke up and in one stroke the enemy in so far as the US was concerned was gone and so, the whole political ideologic'al basis of the nuclear arms race. The Iraqi invasion of Kuwait on 2nd August 1990 led to the launch of US and Allied coalition attack under UN auspices against Iraq on 17th January, 1991. It ended on 28th February, 1991 with the complete defeat of Iraq. Arms trade as a result showed a down-ward trend.In 1991 the total valu e of global arms trade touched $ 22, 114 million. This . was 20% less than in 1990. I In 1992-93 USA, the Russian Federation, France, and Britain all agreed to halt the nuclear arms race totally except vis-a-vis R & D. At the regional level, there was further concretization of Europe's complete demilitarization by the signing of the Helsinkl Document by all Eastern and West European countries. Added to this, there was the world summit on environment at Rio and UN Secretary General's declaration of the ‘Agenda for Peace'. The peripd between 1993 and 1997 saw two other significant events taking place i n~the nuclear arms race.First, in 1995 the NPT review Conference took place for an indefinite extension of the treaty and on 24th September 1996, the Comprehensive Test Ban Traty (CTBT) was up for signature. US and the other nuclear weapons states and 60 other non-nuclear states signed the CTBT. India did not sign either the NPT or CTBT. The government argued that it did so to kee p the nuclear weapons option open. This position taken by India brings us to the question of nuclear arms race in the Third World, dealt with in the following section. .; Check Your Progress 6 L Note : i) Use the space given below for your answer. ii) Check your answer with the model answer given at the end of the unit. I) Examine the nuclear arms race after the collapse of the USSR. 9. 5 NUCLEAR ARMS RACE IN THE THIRD WORLD AND SOUTH ASIA r rT he nuclear arms race that went on in the First World throughout the Cold War definitely had its impact on the Third World. The quest of the German Bomb fueled the American ‘Manhattan Project' initially, and as the Second World War came to a close it was the Soviet ideological and military power manifest in the occupation of Eastern Europe that really put Americans firmly on the track of nuclear bomb making. However, at that time the Allies needed the Soviet Communists to destroy fascist Germany, Italy and Japan. Stalin's intelligence ag encies were well aware of the secret American nuclear programme and at Postdam, his suspicions were confirmed when President Roosevelt informed Stalin of a secret weapon.This knowledge fueled the Soviet desire to build the bomb at a feverish pace to counter the threat form c aptalist west. The bombing on Hiroshima and Nagasaki, though not really necessary were also a veiled threat to Soviets of the American resolve. These events in a way led to the nuclear arms race. After 1949, when Communist China emerged under Mao, it is believed that the Chinese through Soviet help (prior to Sino-Soviet split) too got the nuclear capability and tested in 1964. China was considered a Third World state and one can see how the ideological and political nature of nations deeply affected their decision to develop a nuclear capability.Arms Race and Nuclear Threat Cold War Period 9. 5. 1 Acquisition of Nuclear Capability by China and start of Arms Race in South Asia Thus, the acquisition of nuclear cap ability of China in 1964 signalled the beginning of a nuclear arms race in South Asia. The Indo-Pak conflict was not actually the factor responsible for India's quest for nuclear capability as many scholars claims, though it came in much later. The Kashmir conflict and partition and the three subsequent wars in 1948, 1965 and 1971 did fuel the conventional arms race. 9. 5. 2 India, Pakistan and the Nuclear Arms Race The nuclew arms race in South Asia however was not of India's making.It rather came after the massive defeat India suffered at Chinese hands in 1962, which hit our whole defense and foreign policy. This followed by the news of Chinese exploding the nuclear device in 1964 shook the Indian political and military establishment and they decided to develop India's nuclear capability. The decision was also influenced, perhaps, by the Chinese collusion with Pakistan in the 1950s prior to the 1962 war. It brought home to the Indian strategists the real possibility of Chinese and Pakistanis joining hands against India. After 1962, there was thus no looking back and the nuclear arms race reached South Asia. When India conducted the Peaceful Nuclear Explosion (PNE) in 1974, the Pakistanis too decided to go for a nuclear programme.The onset of the Second Cold War with the Soviet invasion in Afghanistan 1979 put Pakistan on the high priority zone of US in its fight against communism. It signalled deeper military cooperation and aid to Pakistan and some say, the beginning of some help even in fledgling Pakistan nuclear weapons programme. As of now, the South Asian region, is definitely a zone of nuclear competition with India consciously ‘keeping its option open' and not exercising its capability. This is expressed in its refusal to sign both the Nuclear Proliferation Treaty in the 1995 Review Conference ahd the Comprehensive Test Ban Treaty (CTBT) on 24th September, 1996. . 5. 3 ‘Domino Theory' in South Asia The South Asian case amply demonstrates t he ‘Domino Theory' which fuels nuclear arms race or any arms race. First, it was the German threat to Europe which made the US go for the bomb. Then, the Soviet threat made US go in for the bomb again. The bombings in Hiroshima and Nagasaki led Soviets to acquiring the bomb. The common threat to world communism led to Soviets helping the new communist state of China in 1949 with nuclear technology which helped China to conduct a nuclear test in 1964. The Soviets, however, had refused to give nuclear weapon design to China, which became the cause of Sino-Soviet rift.The Indian defeat in 1962 and Pakistan's collusion with the Chines led the Indians to develop the nuclear capability by 1974. The Indian explosion coupled with successive defeats in wars with India led the Pakistanis onto the bomb. The cases of other third world countries acquiring the bomb in similar; e. g. the Iraqi and Iranian nuclear programmes. The South African case too is due to perceived survival threats. Th e other nuclear capable states are Argentina and Brazil-two major States in, Latin America. 9. 5. 4 General Complexion of Arms Race in South Asia Overall one can say that the third world nuclear arms race is definitely a product of the nuclear arms race in the first world and the many conflicts within the Third World sustain it.The cold war military alliance system helped this process. Now, after the collapse of s oviet Union and the massive reduction prior to it and after it in Western nuclear arsenals, nuclear peace has been brought to the world in the sense that we aren't always ‘living on the edge' of a nuclear holocaust. However, the non-resolution of conflicts in the Third World, e. g. Indo-Pak conflicts, Arab-Israeli conflict is a definite reason for the continuance of nuclear arms race in the Third World. – — – Check Your Progress 7 Note : i) F t Use the space given below for your answers. ii) Check your answer with the model answers given at the e nd of the w it. ) What are the factor propelling the arms race in South Asia? 2 ) Briefly comment on India's stand on the nuclear proliferation issue. 9. 6 LET US SUM UP We can conclude this unit by recalling a few pertinent points. Thus: i) The discovery of the. power of the ‘atom' in both its creative and destructive senses was possibly the greatest event in 20th century history. The creation and blasting of the nuclear bomb by the US demonstrated its power with telling effect. ii) The ideological conflict between capitalist West and socialist East was the single biggest factor instigating the nuclear arm race until the collapse of one side i. e. , of the USSR in 1991. iii)However, despite the demise of Socialist Soviet Union nuclear weapons still remain the basis for military power and their quest continues by many third world countries e. g. India, Pakistan, South Africa, Israel, Iran, Iraq and North Korea. iv) The nuclear threat to humanity remains even today and there is very little hope of complete disarmament. The only possible way is probably to reduce the number of warheads and number of nations acquiring this technology for settling their disputes. KEY WORDS ABM-Anti-Ballistic Missile System : It is a weapon system designed to defend against a ballistic attack by intercepting and destroying ballistic missiles and their warheads in flight. Arms Race and Nuclear Threat Cold War PeriodBMD-Ballistic Missile Defense : Systems capable of intercepting and destroying nuclear weapons in flight for defense against a ballistic Missile attack. CFE T naty : The h a t y o n Conventional Armed Forces in Europe : Negotiated in the Conference on Security and Cooperation in Europe (CSCE), a process which began in 1973 and was signed in 1990 by NATO and WTO countries and came into force on 9 November, 1992. NATO-North Atlantic h a t y Organisation : Created by the US and its allies in Western Europe after the Second World War to counter USSR. WTO-Warsaw %sty Org anisation: Created by Soviet Union in 1955 to counter NATO military alliance. Dissolved in 199 1.ICBM-Inter Continental Ballistic Missile: Ground launched Ballistic Missile capable fo delivering a warhead to a target at ranges in excess of 5500 km. INF-Intermediate Range Nuclear forces: are nuclear forces with a range oflfrom 1000 km. upto and including 5500 kms. MIRV-Multiple Independently Targetable Re-entry Vehicles: Re-entry vehicles, carried by a nuclear ballistic missile, which can be directed to separate targets along separte trajectories (as distinct from MRVs). A missile can carry two or more RVs. MRV-Multiple Re-entry Vehicles: Re-entry vehicle, carried by a nuclear missile, directed to the same target as the missile's other RVs.MAD-Mutual Assured Destruction: Concept of reciprocal deterrence which rests on the ability of the nuclear weapon powers to inflict intolerable damage on one another after receiving a nuclear attack. Open Skies h a t y – A Treaty signed by 2 5 CSCE states in 1992, permitting flights by unarmed military or civilian surveillance aircraft over the territory of the signatory states, in the area from Vancouver to Vladivostock. SLBM–Submarine Launched Ballistic Missile: A ballistic Missile launched from a submarine, usually with a range in excess of 5500 kms. START I TREATY : Strategic Arms Reduction lkeaty : Between USA and USSR to reduce strategic nuclear weapons.Strategic Nuclear Weapons : ICBMs, SLBMs and bomber aircraft carrying nuclear weapons of inter-continental range of usually over 5500 kms. Doctriae of Deterrence : It theorically means that the most appropriate way to prevent your enemy employ atomic weapons against you is to put a counter threat by also possessing the atomic bomb. Doctrine of Massive Retaliation: Was a strategy of employing nuclear weapons and outlined by US Secretary of State John Foster Dulles after President Eisenhower took over from President Truman in 1954. The massive retaliation doct rine was founded on responding to any communist inspired aggression, however marginal the confrontation, by means of a massive nuclear strike against major centres in the Soviet Union and China.Doctrine of Limited War : Was propounded by Captain Basil Liddel Hart in the late 1940s. He argued in his book ‘the Revolution in Warfare' in 1946 that â€Å"When both sides possess atomic power ‘total warfare' makes nonsense†¦ Any unlimited war waged with atomic power would be worse than non-sense, it would be mutually suicidal†. He argued that war should, therefore, be a controlled affair and without barbarous excess. However, many US strategies criticized his concept of limited war as practically impossible. Doctrine of Flexible Response : Adapted by NATO in 1967 and based on a flexible and balanced range of appropriate responses, conventional and nuclear, to all levels of aggression or threats.These responses, subject to appropriate political control, are Arms Race and Nuclear Threat designed first to deter aggression and thus preserve peace; but, should aggression unhappily occur, to maintain the security of NATO area within the concept of forward defense. 9. 8 SOME USEFUL BOOKS Lawrence Freedman: The Evolution of Nuclear Strategy. P:M. S. Blackett: Atomic Weapons and East West Relations. Hedly Bull : The Control of the Arms Race. Morton Halperin : Limited War in the Nuclear Age. Freed Ikle : Can Nuclear Deterrence last out the country? Robert Jervis : Perceptions and Misperceptions i n International Politics. Herman Kahn : O n Escalation : Metaphors and Scenarios.Henry Kissinger : Nuclear Weapons and Foreign Policy. Thomas Shelling : Arms and Influence. — – – – – 9. 9 ANSWERS TO CHECK YOUR PROGRESS EXERCISES Check Your Progress 1 1) See Section 9. 2 2) See Section 9. 2 and sub-section 9. 2. 3 Check Your Progress 2 1) S eeSection9. 3 Check Your Progress 3 1) See Section 9. 4 and sub-sections 9. 4. 1 to 9. 4 . 4 2) See Section 9. 4 and sub-section 9. 4. 3 Check Your Progress 4 1) See sub-sections 9. 4. 5 and 9. 4. 6 2) See sub-section 9. 4. 6 Check Your Progress 5 1) See sub-section 9. 4. 7 Check Your Progress 6 1) See sub-section 9. 4. 8 Check Your Progress 7 1) See Section 9. 5 2) See Section 9. 5 and sub-section 9. 5. 2 – –