The Help of Technology to the Stock Market

The reason for this examination paper is to demonstrate that innovation has been useful for the financial exchange. On account of innovation, there are currently more brokers than any time in recent memory in light of the simplicity of exchanging on the web with firms, for example, Auditrade and Ameritrade. There are likewise more stocks that are doing admirably in light of the fact that they are in the innovation field. The New York Stock Exchange and NASDAQ have both profited by the ongoing mechanical development. The NYSE says they â€Å"are committed to keeping up the most proficient and mechanically propelled commercial center in the world.† The way in to that initiative has been the cutting edge innovation and frameworks advancement. Innovation serves to help and upgrade the human judgment at retail location. NASDAQ, the world†s first completely electronic financial exchange, began exchanging on February eighth, 1971. Today, it is the quickest developing financial exchange in the United States. It alo positions second among the world†s protections as far as dollar esteem. By continually advancing to meet the changing needs of financial specialists and open organizations, NASDAQ has accomplished more than practically some other market, in a shorter timeframe. Innovation has likewise helped speculators purchase stocks in different markets. Markets used to open at standard nearby occasions. This would make an American merchant rest through most of a Japanese exchanging day. With progressively on the web and nightfall exchanging, speculators have more access to business sectors so American brokers can in any case exchange Japanese stocks. This is additionally helped by an extension of most market times. Twilight exchanging is accessible from most web based exchanging firms. For contributing pros, innovation gives operational capacity to taking care of more stocks and extraordinarily expanded volumes of exchanging. Pros can follow extra wellsprings of market data, and numerous exchanging and post-exchange works, all on â€Å"one screen† at work or at home. They are likewise offered interfaces to â€Å"upstairs† hazard the board frameworks. They additionally have flexiblity to adjust their physical workspaces, terminals and useful exercises. Floor specialists are assisted with underpins for an industry-wide exertion to think about purchase/sell contracts for exactness soon after the exchange. They are likewise given adaptability in building up working connections utilizing the new remote voice headsets and hand-held information terminals. The capacity to give new and upgraded data administrations to their exchanging work areas and institutional clients is given. They have a far reaching request the board framework, that arranges and tracks every exceptional request. Innovation gives a market†s part associations adaptability in deciding how to staff their exchanging floor tasks just as flexiblity in utilizing that market†s gave frameworks, systems and terminals or interfacing their own innovation. They are given affirmation that their market will have the frameworks limit and exchanging floor activities to deal with every day exchanging and in billions of offers. Part associations get quicker request taking care of and related reports to their clients, alongside speedier and upgraded advertise data. They likewise have an administrative domain, which guarantees part organiztions that their clients, huge and little, can exchange with certainty. Innovation additionally permits lower costs, regardless of expanding volumes and improved items. Organizations recorded on the NYSE are given an electronic connection so they may investigate day by day exchanging their stock, and look at advertise execution during different timeframes. The innovation additionally underpins the perceivability of tasks and data, and managed closeout advertise techniques, which recorded organizations anticipate from their â€Å"primary† showcase on the side of their capital-raising exercises and their investor administrations. Foundations get improved data stream from the exchanging floor, utilizing new remote advancements, as to pre-opening circumstances, profundity of market, and signs of purchase/sell enthusiasm by other enormous dealers. Likewise bolstered are the reasonable, deliberate, and profoundly fluid markets which foundations require so as to distribute the assets they have under administration in the case of setting orders in size for singular stocks (square requests) or executing programs (a progression of up to 500 requests typically identified with a list). For institutional speculators, innovation gives data on opportune exchanges and statements and makes them accessible through part firms, showcase information administrations, link communicates and news media. They likewise are given an exceptionally powerful method of dealing with â€Å"smaller† orders, giving them interchanges need and full sale advertise support for â€Å"price improvement† yet turning the normal market request around in 22 seconds. Value continuitity and tight citation spreads, which are under consistent market surveillence and an administrative situation which authorizes exchanging rules intended to ensure â€Å"small investors† are likewise bolstered. There are various sorts of hardware utilized on the securities exchange. One of these machines is SuperDot, an electronic request steering framework through which part firms of the NYSE transmit market and breaking point arranges legitimately to the exchanging post where the stock is exchanged. After the request has been finished in the sale showcase, a report of execution is returned straightforwardly to the part firm office over the equivalent electronic circuit that carried the request to the exchanging floor. SuperDot can right now process about 2.5 billion offers for every day. Another bit of apparatus is the Broker Booth Support System. The BBSS is a best in class request the board framework that empowers firms to rapidly and productively process and deal with their requests. BBSS permits firms to specifically course arranges electronically to either the exchanging post or the corners on the exchanging floor. BBSS underpins the accompanying agent capacities: recieving orders, entering orders, rerouting orders, giving reports, research, and survey different administrations by means of terminal â€Å"windows†. The overhead â€Å"crowd† show is America†s first business utilization of huge scope, top quality, level screen plasma innovation. It shows exchanges and statements for each stock. The presentation additionally shows contending national market framework cites. Clear, readable data is shown at wide review points. Full shading and video capacities are additionally given. The â€Å"Hospital Arm† Monitor is suspended for advantageous survey by experts. Different information sources that are shown incorporate retail location books, overhead â€Å"crowd† shows, advertise montage and different merchant administrations. The rundown of data sources is going to keep extending. The Point-of-Sale Display Book is an instrument that significantly expands the specialist†s volume taking care of and preparing abilities. Utilizing incredible workstation innovation, this database sysem keeps up the breaking point request book for which the authority has office duty, aids the chronicle and scattering of exchanges and citation changes, and encourages the examination of requests. The entirety of this serves to wipe out administrative work and preparing orders. The Consolidated Tape System is an incorporated, overall announcing arrangement of cost and volume information for exchanges recorded protections in every single household advertise in which the protections are exchanged. The Hand-Held is a portable, hand-held gadget that empowers dealers to recieve orders, disperse reports, and send showcase â€Å"looks† in the two information and picture position, from anyplace on the exchanging floor. Intermarket Trading System is a showcase that was introduced in 1978 connecting all major U.S. trades. ITS permits NYSE and NASDAQ experts and merchants to think about the cost of a security exchanged on numerous trades so as to get the best cost for the financial specialist. These are the machines that have helped extraordinarily increment the purchasing and selling of stocks in the course of recent years. There are incredible points of interest to exchanging today over the circumstance that past dealers had. The greatest recipients of this new innovation are financial specialists themselves. They have the entire day to exchange as opposed to exchanging just during market hours, they have more stocks to look over, and the business sectors are exceptionally high so individuals are raking in boatloads of cash. Taking everything into account, I have found that the exploration I have done on this task has uncovered what I initially thought to be valid. That will be that the securities exchange has incredibly profited by the ongoing advances in advances.

A nation Under Attack essays

A country Under Attack expositions We are a country enduring an onslaught. No, I am not befuddled. I am not blending us up with Iraq, which is deliberately being assaulted by the U.S. government. I mean we, a country of American residents who are efficiently being assaulted by the U.S. government. No bombs have been dropped at this point however the officers have positively been put on alert. Im not certain if this was George W.s plan constantly or if the light unexpectedly went on when he was conceded the administration by the Supreme Court, yet some place along the line he chose the old principles of American government, incorporating the implicit checks and parity arrangement of independent parts of government, were not, at this point required and he would make up some new ones. What's more, kid, has he been occupied. Since he got down to business, George W. has gradually beaten back our expected, and consistently before ensured, social equality. He has built up what is known as the Bush Doctrine. It says, fundamentally: he, the pioneer of the United States, will be ever careful searching for nations that may sometime form into a danger and, pre-emptively, pronounce war on them. No, he won't need anyones endorsement, he alloted himself sovereign force. All things considered, this is a force given to a ruler or other incomparable ruler. Indeed, I am as yet discussing America, place that is known for popular government. I read the majority of the Bush Doctrine and never found who gets the opportunity to watch out for us, on the off chance that we form into a threatbecause directly about now Id state that nation is either stacking the rockets or snoozing at work. He has marked into law the Patriot Act, which gives the administration the option to capture withou t charge and hold uncertainly anybody the administration names a danger. All things considered, two lines into this article I turned into a danger to the new system. One reason we parted from England in 1776 was that they were capturing individuals without charge and holding them uncertainly. At the time we considered ... <!

Risks and Challenges of Staring Business Abroad - 550 Words

Risks and Challenges of Staring Business Abroad (Essay Sample) Content: Risks and Challenges of Staring Business AbroadStudents NameInstitutional AffiliationRisks and Challenges of Staring Business Abroad Starting a business in a foreign country is a common practice aimed at escaping a venture from domestic competition while taking advantage of fresh opportunities abroad. Yet the process is fraught with numerous risks and challenges that if not considered and planned for diligently may collapse a business at infancy. At the business level, one must understand the financial and regulatory environment in a foreign country prior to setting base. At political level, one must analyze the macro and micro political situations and how they may affect business operation. At cultural level, one must be competent enough to approach and operate in the market in a culturally sensitive manner. This paper will explore the specific business, political, and cultural risks that may face a business starting in a foreign country as well as recommend a plan t o avoid operational, transaction, and translation exposure. An enterprise starting abroad faces the business risks of financial exposure resulting from currency stability and exchange rates, taxation regime and government policy. If the area of interest is Asia for instance, a business must be aware that currency stability in most countries is dependent on oil prices, and purchasing power and government policy may change in response to the prices (Auernheimer, 2003). Moreover, the enterprise, if originating from the United States for instance, must be aware of the currency differences and exchange rates. Similarly, the enterprise faces a challenge as regards the tax policy and laws as they may be more capricious than elsewhere. As regards political risks, the most salient one is political stability as it affects the favorability of business environment. In the event of a revolution, war or insurrection for instance, a market becomes untenable despite the economic ability of the tar get client. At a lower level, the political environment may cultivate a culture of impunity that violates business laws and is complicit to corruption (Loughman Sibery, 2012). In countries where political leaders are known to precipitate crisis to force closure of foreign business in order to protect their own, the risks are multiplied. Culturally, a business starting abroad faces the challenges of communication as well as daily interactions with clients and other stakeholders. Hofstede cultural theory provides the model framework for understanding a societys culture and how it may affect business (Hofstede, 2001). Through this model it is possible to predict some of the challenges to expect while doing business abroad. An American business would for instances face language barrier in Middle East where English is not spoken by many people. Other more nuanced challenges include the different code of dressing, business meetings, and decision making. In Japan for instance, meetings a re longer and time is a more flexible concept than is the case in the west. Moreover, decision making process has more reverence to leaders and managers than in the west. These differences make it difficult to do business especially where the parties are nor culturally competent. The business, cultural, and political risks discussed above could lead to operational, transaction and translation exposure. To avoid such a situation, it is recommendable to conduct a thorough market research before penetrating a foreign market. Local consultants ...

Morality Is An Important Component Of A Human Being Because

Morality is an important component of a human being because it helps shape the ethical foundation that every human being has. Whether to be good, evil, honest, or deceitful are just some of the traits morality helps us develop. Thus, it is evident that morality is a crucial component of a human being. However, what ultimately drives moral action? This question is debated and investigated against many philosophers, a few of them being Thomas Hobbes, Frans de Waal, and David Hume. Hobbes believes that in the state of nature, humans have no laws, morals, police force, property, government, culture, knowledge, or durable infrastructure. Within this state of nature, people have no morals and do as they please without any consequence. As†¦show more content†¦Both are powerful forces that contribute to morality. However, Hume concludes that it is the sentiment, feeling, or pleasure that human beings feel that ultimately shape their morality. Both Hume and Hobbes have opposing views regarding whether or not humans are naturally moral. Hume believes that humans are naturally moral. According to Hume, humans derive their morality through sentiments or feelings that help shape behavior and action. Hobbes, however, believes that humans are selfish individuals and in turn do not have moral values. This is described as the state of nature. He further believes that humans do not have a unified moral code or system and must thus find a higher power that would help shape their behavior. Such a power, Hobbes argues, should be the government as it develops laws that all humans must abide by. Hobbes describes this as common wealth. Frans de Waal begins his argument by first stating the question as to whether or not a human’s moral actions originated from the psychological and behavioral nature of our evolutionary ancestors. He concludes this thought by saying that our moral actions do, in fact, originate from the psychological and behavioral nature of our evolutionary ancestors. De Waal further argues that the foundations of human morals are found in the primates of today. They are composed of actions and emotions whose evolutionary role assists us in our social organization and unity. In the beginning pages of his book, De WaalShow MoreRelatedEssay about Morality1221 Words   |  5 Pages Morality   Ã‚  Ã‚  Ã‚  Ã‚  Moral philosophy is very important to the success of an individual. But, before I tell you why moral philosophy is so important, and how it has helped me in my life, let me give you a little background knowledge. Rational knowledge has two components. These components are material and formal. Formal knowledge is not object oriented, and is based on reason. Formal knowledge is logic, or the laws of thought. Material knowledge is object oriented, and has two components. TheseRead MoreWhat Does Robert Scruton Mean When He Says We Should Eat Our Friends?895 Words   |  4 Pagesencourage the thought of considering animals as our friends (and then, eat them). This chapter on eating our friends from the book, A Political Philosophy, by Robert Scruton poses the question: is it moral to eat animals? Scruton begins with the important claim that members of any monotheistic religion have mutually agreed that, â€Å"animals exist for our purposes and that we are entitled to use them, domesticate them and eat them, subject only to God’s inscrutable dietary laws† (Scruton 47). After theRead MoreAristotles Philosophy on Purpose Essay884 Words   |  4 Pagesdetermine how best to achieve happiness.† In order to achieve happiness, one must live a virtuous life, in the mind of Aristotle. Interest is sparked in this area that Aristotle writes of because there is a natural need for Ethics in human life. John K. Roth states, â€Å"Aristotle assumes that all things, human beings included, have a good, a purpose or end, which it is their nature to fulfill†. This helps one understand Aristotle’s way of thinking, and provides insight to the basis of his theories. ARead MoreMorality Essay examples1606 Words   |  7 PagesMorality is defined as a system or code that we humans use to differentiate between right and wrong. This system could be derived from a number of factors: religion, culture, and upbringing. It is difficult enough to determine what an individuals morals are, but going further to determine how we came to possess those morals is even more ambitious. Still, regardless of its difficulty, this subject consumes many philosophers and psychologists. One such moral psychologists, Jonathan Haidt, is theorizingRead MoreStudying Moral Philosophy732 Words   |  3 Pagesfelt that he has done something wrong or even immoral, and was encouraged to change his behavior. Even as a child many of us were constantly told: â€Å"Think about your behavior!† This reminder helps realize that one of the most powerful determinants of human behavior stems from our need to justify our actions. This feeling of discomfort caused by performing a certain action is called cognitive dissonance. However, sometimes justification of our actions, caused by cognitive dissonance, leads to the thought:Read MoreHumanities And Discuss The Role Of Role1468 Words   |  6 Pagesand document the human experience (Stanford Humanities). In order to understand our world, humans use philosophy, literature, religion, art and music. The knowledge of recording these human experiences gives us an opportunity to focus on our similarities and differences, and also to learn important life’s lesson. The textbook states that through arts, music, literature etc., important messages can be conveyed about many different subjects such as war, poverty, death, and other human conditions. HumanitiesRead MoreGeorge Rousseau And John Locke1502 Words   |  7 PagesMorality is the differentiation of intentions, actions, and decisions, between what is right or good, and what is wrong or bad. It can also be characterized as a body of principles or standards, derived from religion, philosophy or culture. There are different proposed systems of expressing morality, which include deontological and utilitarianism ethical systems, among others. Many philosophers have been attempting to explain the actual meaning of morality. Both Jean Rousseau and John Locke advocatedRead MoreHuman Nature Is A Complex System That Has Many Layers Of995 Words   |  4 Pages Human nature is a complex system that has many layers of its composition. With this, we tend to often ask ourselves â€Å"what consistencies are evident in the activity of happiness?† Happi ness is presented to us in a variety of forms that point us in the direction of having the same end result. Plato, Aristotle, Augustine, and Lewis each provided their own unique views on the accounts of happiness that are portrayed through human nature. With this, there are consistent principles of human nature thatRead MoreEthical Egoism1596 Words   |  7 Pagesprinciples, or our considerations of fairness and justice. The word â€Å"consideration† is used because every individual has their own standards for what they feel to be morally right versus what they feel to be morally wrong, however this concept is not as black and white as it may seem. We accredit our moral considerations to many external and internal factors. An example of an external factor is government laws because they are predetermined rules about behavior and action that have been societally deemedRead MoreThe Ethical And Ethical Views Behind Computer Scientists1622 Words   |  7 Pagescomputer scientists being responsible for the action that they take upon the problems that they can face from the systems that they design. They must be faced with the codes of ethics and the morality issues in order to acknowledge the user about the responsibility that they must encounter in order for the use of technology. In the case of the technological society, the IT technology must include security measures to avoid hacking and to be in line with legislations since it’s an important factor towards

Analysis Of John Chaucer s The Canterbury Tales

Amanda O’Donnell Mrs. Joines English IV Honors 4 November 2014 Money and Greed: In Today’s Society and Canterbury Tales Money? Greed? A lot of people have some money at least. The everyday person doesn’t have all the money they want. Greed, by definition is an excessive or rapacious desire, especially for wealth or possession. At some point in time, there is always something someone is greedy for; it usually is money (let’s be honest, that’s the one thing people want the most.) People in today’s society always want more than what they have. Geoffrey Chaucer shows us this in The Canterbury Tales, especially in The Pardoner’s Tale. In order to achieve a better understanding of the story and the meaning behind The Pardoner’s Tale and The Canterbury Tales, the history of the author must be known. Geoffrey Chaucer wrote The Canterbury Tales; he sadly didn’t get to finish them. The exact date of birth is not known but the most common and accepted date is 1340 but 1343 is a more accurate estimate. People believe that he was born in London, because that is where his parents, John and Agnes, owned property.His dad was a successful wine merchant; he also had business ties to King Edward III. Through Mr. Chaucer’s life he held various different distinguishing professions. Some of the professions are courtier, soldier, diplomat, and civil servant. During his time period of writing, somewhere about 1392, writing was considered a pastime of a talented man, but it was notShow MoreRelatedAn Analysis Of Chaucer s The Canterbury Tales 2650 Words   |  11 PagesAn Analysis of Chaucer’s Miller in The Canterbury Tales In the prologue to The Canterbury Tales, Chaucer introduces the Miller as a crude, rude, loud character who cheats his customers. The tale, which the Miller later narrates, is appropriate because the Miller’s tale clearly reflects this individual’s unrefined personality by telling a typical, filthy tavern story. The Canterbury Tales, written by Geoffrey Chaucer, is a story that details thirty pilgrims, including Chaucer, traveling onRead More Contradictions in Chaucers The Canterbury Tales Essay3897 Words   |  16 PagesContradictions in Chaucers The Canterbury Tales There is no question that contradictory values make up a major component of The Canterbury Tales. Fate vs. Fortuna, knowledge vs. experience and love vs. hate all embody Chaucers famous work. These contrasting themes are an integral part of the complexity and sophistication of the book, as they provide for an ironic dichotomy to the creative plot development and undermine the superficial assumptions that might be made. The combination of completelyRead More The Hidden Meaning of The Nuns Priests Tale Essay3752 Words   |  16 PagesThe Hidden Meaning of The Nuns Priests Tale  Ã‚     Ã‚   It has been suggested that a Chaucer tale exploits the nature of its genre but also draws attention to the ideological biases and exclusions inherent in the genre2. In my opinion The Nuns Priests Tale is a wonderful example of Chaucer testing the bounds of his chosen genre - in this case the beast fable. What is a beast fable? Obviously a tale about animals, but one where animals are used as embodiments or caricatures of human virtuesRead MoreThe Metrics Of English Literature4721 Words   |  19 Pagesyears of linguistics and literature experience will analyse several texts that belong to different stages of the English language and compare their ideas. Why may you ask? 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Gawain accepts and beheads him with his blow, at which the Green Knight stands upRead MoreAmerican Literature11652 Words   |  47 PagesChristian utopia Genre/Style: ï‚ · ï‚ · ï‚ · ï‚ · ï‚ · sermons, diaries personal narratives captivity narratives jeremiads written in plain style Effect: ï‚ · ï‚ · instructive reinforces authority of the Bible and church Historical Context: ï‚ · ï‚ · a person s fate is determined by God all people are corrupt and must be saved by Christ Rationalism / Age of Enlightenment period of American Literature - 1750-1800 Content: ï‚ · ï‚ · ï‚ · ï‚ · national mission and American character democratic utopia use of reasonRead MoreA Picatrix Miscellany52019 Words   |  209 PagesLondon, The Warburg Institute, University of London, 1962 French B. Bakhouche, F. Fauquier, B. Pà ©rez-Jean: Picatrix Un traità © de magie mà ©dià ©val. 388 p., 130 x 210 mm, 2003, Paperback ISBN 2-503-51068-X, EUR 37.91. Newest critical edition. French S. Matton, La magie arabe traditionelle, Paris, 1977 (incomplete) Latin Picatrix: The Latin Version of the Ghà ¢yat Al-Hakà ®m, ed. David Pingree (London, Warburg Institute, 1986). Spanish Abul-Casim Maslama ben Ahmad: Picatrix (El fin del sabio y el mejor

Greek Mythology in Astronomy free essay sample

Mythology in Astronomy The creatures and deities in Greek mythology are said to have connection with the astronomy and the star constellations. In this fragment of Hesiods poem â€Å"Nymphs like the Graces, Phaesyle and Coronis and rich-crowned Cleeia and lovely Phaeo and long-robed Eudora, whom the tribes of men upon the earth call Hyades. † (Hesiod, Homeric Hymns, Epic Cycle, Homerica. 1922) titled Astronomy, he mentioned and catalogued many of the constellations based on creatures and gods in greek mythology. Mythological aspect of the astronomy are mostly covered on the northern hemisphere, which includes the 12 zodiac constellations and some other constellations. The zodiac constellations formed an imaginary circle which the sun, moon, and seven of the nine planets orbited in the space, for example the Taurus which symbolizes the bull which describe zeus, and the form he took when he carried off the phoenician maiden, Europa. The other constellations are the constellations located out of the imaginary circle or the zodiac circle. We will write a custom essay sample on Greek Mythology in Astronomy or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page One example of the constellations are the Canis Major or Great Dog which describe several dogs that appeared in many classical myths. One of the story about it is from the book written by Hyginus titled Poetica Astronomica: He is said to have been given by Jove as a guardian for Europa, and later to have come to Minos. When Minos was ill, Procris, wife of Cephalus, is said to have cured him, and received the dog as a reward for her services, as she was very fond of hunting and the dog was so swift that no beast could escape. After her death the dog came to Cephalus her husband, who brought it to Thebes with him when he came. There was a fox there which was said to be so swift that it could outrun all dogs. So when the two animals met, Jupiter, in a dilemma, as Istrus says, changed them both to stone. Some have said that this is the dog of Orion, and because Orion was devoted to hunting, the dog was put with him among the stars. Others have called it the dog of Icarus. (Hyginus, C. Julius, Poetica astronomica) The other constellations can be added into zodiac constellations when the orbit of the planet passes certain constellations, for example, the Ophiuscus which bear the serpent sign that was recently added as the 13th zodiac sign. In addition to the constellations, mythological aspect of the astronomy also talks about the other heavenly bodies like the star clusters, galaxies, and nebulaes. Unlike constellations that most of them have mythical backgrounds, only few heavenly bodies have mythical backgrounds like Pleiades, Andromeda and Milky Way. However, constellations and the heavenly bodies have some similarities, and one of it is that they both have some unique way to be catalogued. The heavenly bodies have three different catalogue developed by three different people. The catalogue usually have prefix attached with numbers on it. The first catalogue are the Messier catalogue developed by Charles Messier, the catalogue uses the prefix M before the number and had catalogued around 109 clusters, nebulae, and galaxies in 1786. This catalogue are still used today. The second catalogue system is the new general catalogue or also known as the NGC, this catalogue was developed by Johan Ludvig Emil Dreyer in 1888 and has catalogued over 8000 objects. The last one is the index catalogue (IC) which was developed by J. L. E Dreyer, based on www. ngcicproject. org, the index catalogue gives notes and correction to the new general catalogue on the year 1888 to 1894 and add some findings on the year 1895 to 1907. The association of gods and the planets also worth mentioning if we talk about mythology and astronomy. Especially due to the facts that most of the planets today have the name of the gods, also on the old days, the ancient Greeks views the planets as a wandering stars. They also included sun and moon as a planet and was governed by titan and titaness. They also didnt add the planet that wasnt visible to the human eye at that time, so at that time, Pluto, Uranus, and Neptune wasnt included into the planetary list by the ancient astronomers.

Tell tale heart critical analy Essay Example For Students

Tell tale heart critical analy Essay The Tell Tale Heart is a story, on the most basic level, of conflict. There is a mental conflict within the narrator himself (assuming the narrator is male). Through obvious clues and statements, Poe alerts the reader to the mental state of the narrator, which is insanity. The insanity is described as an obsession (with the old mans eye), which in turn leads to loss of control and eventually results in violence. Ultimately, the narrator tells his story of killing his housemate. Although the narrator seems to be blatantly insane, and thinks he has freedom from guilt, the feeling of guilt over the murder is too overwhelming to bear. The narrator cannot tolerate it and eventually confesses his supposed perfect crime. People tend to think that insane persons are beyond the normal realm of reason shared by those who are in their right mind. This is not so; guilt is an emotion shared by all humans. The most demented individuals are not above the feeling of guilt and the havoc it causes to the psyche. Poes use of setting, character, and language reveal that even an insane person feels guilt. We will write a custom essay on Tell tale heart critical analy specifically for you for only $16.38 $13.9/page Order now Therein lies the theme to The Tell Tale Heart: The emotion of guilt easily, if not eventually, crashes through the seemingly unbreakable walls of insanity. On the surface, the physical setting of The Tell Tale Heart is typical of the period and exceedingly typical of Poe. The narrator and the old man live in an old, dark house: (for the shutters were close fastened, through fear of robbers) (Poe 778). Most of the story takes place at night: And this I did for seven long nights-every night just at midnight (778). The physical aspect is not the most important component of setting for this analysis. More important are the mental and emotional settings. This clearly explains the personality of the narrator. One can assume the narrator is insane. He freely admits to his listener that he is -nervous-very, very dreadfully nervous (777). But he then asks, but why will you say that I am mad? (777). He also admits that, The disease had sharpened my senses (777). If not insanity, what disease does he speak of? The reason for his actions was one of the old mans eyes: -a pale blue eye, with a film over it (777). This is easily recognizable to the reader as an eye with cataract on it. This is nothing to obsess over, yet this eye haunted me day and night (777). Any sane person would take a physical defect of another with a grain of salt. One statement by the narrator sums up his mental state: You fancy me mad. Madmen know nothing. But you should have seen me (777). What he is actually saying is: There are madmen who are clumsy in their actions, but not this madman! This is as close to a self-admission of insanity as possible. The mental setting is put into place by the narrators own statements. This setting is pure chaos starting in the head of the killer and spilling out into the physical world around him resulting in an unnecessary death. When the narrator is explaining the end of his tale to the unnamed listener (presumably a jailor, or a mental health practitioner), he states the beating of the heart was unbearable on his conscious: I paced the floor to and fro with heavy strides, as if excited by the observations of the men-but the noise steadily increasedI foamed- I raved-I swore!the noise arose over all and continually increased. It grew louder-louder-louder!They heard!-they suspected!-they knew!I felt I must scream or die!(780). The narrator proceeded to admit his killing of the old man. .ua5ebbeae97582068cfcb341b406eb41a , .ua5ebbeae97582068cfcb341b406eb41a .postImageUrl , .ua5ebbeae97582068cfcb341b406eb41a .centered-text-area { min-height: 80px; position: relative; } .ua5ebbeae97582068cfcb341b406eb41a , .ua5ebbeae97582068cfcb341b406eb41a:hover , .ua5ebbeae97582068cfcb341b406eb41a:visited , .ua5ebbeae97582068cfcb341b406eb41a:active { border:0!important; } .ua5ebbeae97582068cfcb341b406eb41a .clearfix:after { content: ""; display: table; clear: both; } .ua5ebbeae97582068cfcb341b406eb41a { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ua5ebbeae97582068cfcb341b406eb41a:active , .ua5ebbeae97582068cfcb341b406eb41a:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ua5ebbeae97582068cfcb341b406eb41a .centered-text-area { width: 100%; position: relative ; } .ua5ebbeae97582068cfcb341b406eb41a .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ua5ebbeae97582068cfcb341b406eb41a .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ua5ebbeae97582068cfcb341b406eb41a .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ua5ebbeae97582068cfcb341b406eb41a:hover .ctaButton { background-color: #34495E!important; } .ua5ebbeae97582068cfcb341b406eb41a .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ua5ebbeae97582068cfcb341b406eb41a .ua5ebbeae97582068cfcb341b406eb41a-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ua5ebbeae97582068cfcb341b406eb41a:after { content: ""; display: block; clear: both; } READ: Reasons That Lead Teenagers To Alcohol Abuse And T Essay Obviously, his mental state was one of pure fear and disillusion. An auditory hallucination of a dead heart beating caused so much mental anguish in the narrator that it made him confess to the crime. This indeed shows insanity. Yet this insanity was not as strong as the guilt pushing through it. Another element that supports the theme is character. Poe never states if the narrator is male or female. The reader generally assumes that the narrator is male. A statement like . Tell tale heart critical analy Essay Example For Students Tell tale heart critical analy Essay The Tell Tale Heart is a story, on the most basic level, of conflict. There is a mental conflict within the narrator himself (assuming the narrator is male). Through obvious clues and statements, Poe alerts the reader to the mental state of the narrator, which is insanity. The insanity is described as an obsession (with the old mans eye), which in turn leads to loss of control and eventually results in violence. Ultimately, the narrator tells his story of killing his housemate. Although the narrator seems to be blatantly insane, and thinks he has freedom from guilt, the feeling of guilt over the murder is too overwhelming to bear. The narrator cannot tolerate it and eventually confesses his supposed perfect crime. People tend to think that insane persons are beyond the normal realm of reason shared by those who are in their right mind. This is not so; guilt is an emotion shared by all humans. The most demented individuals are not above the feeling of guilt and the havoc it causes to the psyche. Poes use of setting, character, and language reveal that even an insane person feels guilt. We will write a custom essay on Tell tale heart critical analy specifically for you for only $16.38 $13.9/page Order now Therein lies the theme to The Tell Tale Heart: The emotion of guilt easily, if not eventually, crashes through the seemingly unbreakable walls of insanity. On the surface, the physical setting of The Tell Tale Heart is typical of the period and exceedingly typical of Poe. The narrator and the old man live in an old, dark house: (for the shutters were close fastened, through fear of robbers) (Poe 778). Most of the story takes place at night: And this I did for seven long nights-every night just at midnight (778). The physical aspect is not the most important component of setting for this analysis. More important are the mental and emotional settings. This clearly explains the personality of the narrator. One can assume the narrator is insane. He freely admits to his listener that he is -nervous-very, very dreadfully nervous (777). But he then asks, but why will you say that I am mad? (777). He also admits that, The disease had sharpened my senses (777). If not insanity, what disease does he speak of? The reason for his actions was one of the old mans eyes: -a pale blue eye, with a film over it (777). This is easily recognizable to the reader as an eye with cataract on it. This is nothing to obsess over, yet this eye haunted me day and night (777). Any sane person would take a physical defect of another with a grain of salt. One statement by the narrator sums up his mental state: You fancy me mad. Madmen know nothing. But you should have seen me (777). What he is actually saying is: There are madmen who are clumsy in their actions, but not this madman! This is as close to a self-admission of insanity as possible. The mental setting is put into place by the narrators own statements. This setting is pure chaos starting in the head of the killer and spilling out into the physical world around him resulting in an unnecessary death. When the narrator is explaining the end of his tale to the unnamed listener (presumably a jailor, or a mental health practitioner), he states the beating of the heart was unbearable on his conscious: I paced the floor to and fro with heavy strides, as if excited by the observations of the men-but the noise steadily increasedI foamed- I raved-I swore!the noise arose over all and continually increased. It grew louder-louder-louder!They heard!-they suspected!-they knew!I felt I must scream or die!(780). The narrator proceeded to admit his killing of the old man. .ucbb8b758e7896ae3b1a623445b79fd17 , .ucbb8b758e7896ae3b1a623445b79fd17 .postImageUrl , .ucbb8b758e7896ae3b1a623445b79fd17 .centered-text-area { min-height: 80px; position: relative; } .ucbb8b758e7896ae3b1a623445b79fd17 , .ucbb8b758e7896ae3b1a623445b79fd17:hover , .ucbb8b758e7896ae3b1a623445b79fd17:visited , .ucbb8b758e7896ae3b1a623445b79fd17:active { border:0!important; } .ucbb8b758e7896ae3b1a623445b79fd17 .clearfix:after { content: ""; display: table; clear: both; } .ucbb8b758e7896ae3b1a623445b79fd17 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ucbb8b758e7896ae3b1a623445b79fd17:active , .ucbb8b758e7896ae3b1a623445b79fd17:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ucbb8b758e7896ae3b1a623445b79fd17 .centered-text-area { width: 100%; position: relative ; } .ucbb8b758e7896ae3b1a623445b79fd17 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ucbb8b758e7896ae3b1a623445b79fd17 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ucbb8b758e7896ae3b1a623445b79fd17 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ucbb8b758e7896ae3b1a623445b79fd17:hover .ctaButton { background-color: #34495E!important; } .ucbb8b758e7896ae3b1a623445b79fd17 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ucbb8b758e7896ae3b1a623445b79fd17 .ucbb8b758e7896ae3b1a623445b79fd17-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ucbb8b758e7896ae3b1a623445b79fd17:after { content: ""; display: block; clear: both; } READ: Bravery Essay Obviously, his mental state was one of pure fear and disillusion. An auditory hallucination of a dead heart beating caused so much mental anguish in the narrator that it made him confess to the crime. This indeed shows insanity. Yet this insanity was not as strong as the guilt pushing through it. Another element that supports the theme is character. Poe never states if the narrator is male or female. The reader generally assumes that the narrator is male. A statement .

Free Essays on Everglades Flooding

Florida's Dying Natural Wonder Perhaps we take it for granted that our beautiful homeland will be forever changed because of the effects of modern civilizations. The environment, local animals, plants, and neighboring niches are all being affected by a few factors. The insensitivity of humans towards our fellow living creatures has caused the Everglades to shrink dramatically in the last one hundred years. The health of the everglades has been compromised because we as humans need more space to live on, bigger roads, and adventures on which we embark. In the following paragraphs, I will explain one of the most threatening factors to Florida's Everglades, habitat loss. Originally, the Everglades consisted of nearly 8,100 square miles, now, it has been reduced to about 2,300 square miles of which about three-fifths is in set-designated water conservation areas. Two-thirds of the original everglades is the water that falls on one-thirds of the original watershed. In simpler terms, the water in the Everglades is being washed into the ocean at a faster rate than the animal and plant life can adapt to. If this problem continues on the same route it is on, the death toll of animals and plants will reach catastrophic proportions. Many years ago, the Everglades was much deeper than it is now and the wet season lasted many months. Now, huge amounts of water come in short intervals and are dried up more quickly than it can be replaced due to drainage. Grasses who survive in deep water are being killed rapidly. Due to the death of these grasses, several species of fish have decreased dramatically in number. The loss of these grasses allows the melalueca to dominate these areas as the supreme species of plants. Fourteen animal species in the everglades are endangered and many more are threatened. The loss of habitat and overcrowding of certain species are disturbing animal population. Since the 1900's, ninety percent of the bird population ha... Free Essays on Everglades Flooding Free Essays on Everglades Flooding Florida's Dying Natural Wonder Perhaps we take it for granted that our beautiful homeland will be forever changed because of the effects of modern civilizations. The environment, local animals, plants, and neighboring niches are all being affected by a few factors. The insensitivity of humans towards our fellow living creatures has caused the Everglades to shrink dramatically in the last one hundred years. The health of the everglades has been compromised because we as humans need more space to live on, bigger roads, and adventures on which we embark. In the following paragraphs, I will explain one of the most threatening factors to Florida's Everglades, habitat loss. Originally, the Everglades consisted of nearly 8,100 square miles, now, it has been reduced to about 2,300 square miles of which about three-fifths is in set-designated water conservation areas. Two-thirds of the original everglades is the water that falls on one-thirds of the original watershed. In simpler terms, the water in the Everglades is being washed into the ocean at a faster rate than the animal and plant life can adapt to. If this problem continues on the same route it is on, the death toll of animals and plants will reach catastrophic proportions. Many years ago, the Everglades was much deeper than it is now and the wet season lasted many months. Now, huge amounts of water come in short intervals and are dried up more quickly than it can be replaced due to drainage. Grasses who survive in deep water are being killed rapidly. Due to the death of these grasses, several species of fish have decreased dramatically in number. The loss of these grasses allows the melalueca to dominate these areas as the supreme species of plants. Fourteen animal species in the everglades are endangered and many more are threatened. The loss of habitat and overcrowding of certain species are disturbing animal population. Since the 1900's, ninety percent of the bird population ha...

A Feeling of Accomplishment

I’ve always been a not so active person and didn’t like big changes. But this time I couldn’t do anything about it, I was going to high school. The first thing I noticed was that the school was very small and in a huge building. I had so many different teachers and they all asked for different stuff, but everything was normal. A new year, a new starting point in my life, and I had to become active. It took me a couple of months to realize that I had to try something new.There was an old man around his 50’s always walking around the hallway. His name was Mr. Rey .He use to wear formal clothes, brown dressing pants with a blue Civil Air Patrol shirt, and some black shoes. He seemed nice but I didn’t dare talking to him. Until one day, he came to my History class and gave us a speech about flight. It was just like a sleeping pill almost half of the class felt asleep and I was trying my best to stay awake. It was around two months later when some friends convinced me to join the flight program after school. The first few week I was absolutely lost, and plus I had to hear him tell me the same thing over and over again. Every day after class he told me about all the opportunities, activities and trips we had, and about how I was supposed to try my best. All this made me feel like I needed to understand what he was talking about during class, but it was harder then what it seemed like. I hated being the outsider, I felt dumb and the worst part was that I wanted to learn, but like they say â€Å"Everything is hard until you learn it, then it becomes easy†. Time passed by fast, I already had about five months in the program and it was time to try the real thing. After class Mr. Rey told me I was flying on the upcoming Saturday, all this made me feel nauseous. I just glanced at him and wanted to say no, but words didn’t come out my mouth. On my way home I asked myself how I had gone so far, why didn’t I quit when I felt dumb. Two days until Saturday and I was already freaking out. Everyone seemed happy about the news, and I just didn’t want to think about it. Friday night was awful, I couldn’t stop feeling the anxiety and my eyes just wouldn’t close.Unfortunately for me it was Saturday, and at 8:00am we arrived at Republic Air Port in Farmingdale. My hands could stop sweating and it all got worst when Mr. Rey said that girls go first. I packed my stuff ready and got into the piper. My hands suddenly stopped sweating, it was a strange feeling I never felt before. I took off and landed all by myself and actually did pretty good. When I was in the ground I couldn’t believe what I’ve done. I asked myself what had happened to the old me. Where was the shy and afraid to change girl? That’s when I realize Mr. Rey had changed me he always used to push me just a little further and further each time. That’s when I realized I was definitely not the same girl.Sometimes we think people have nothing to do with what we turn out to be, but I can truthfully tell you Mr. Rey changed my life. I fell more confident and am sure that if I set my mind to something at the end ill taste the sweet feeling of accomplishment.

Change Essay Example | Topics and Well Written Essays - 250 words - 2

Change - Essay Example In business, resistance is the obstacle to surmount or conquer, especially when it comes to introducing new ideas, policies, protocols and products. This paper seeks to highlight resistance as a natural condition, and its application in successful product change in business with special emphasis on sales personnel. A business’ sole purpose is to make a profit at the end of the day’s activities, and when market conditions change, it requires businesses to formulate new ways of conducting business. Most businesses have a sales perspective that involves designated individuals who carry out the task of marketing and actualizing product(s) sale. According to Jaramillo et al, sales persons are more predisposed to resist change if they think it will increase their workload. For a business entity to achieve a successful product change, especially where its sales team is concerned, it needs to ensure that the team maintains its self-efficacy and autonomy (Jaramillo et al. 549). This would ensure that these individuals continue to maintain a harmonious and beneficial relationship with their customers. According to research conducted by Jaramillo et al, resistance to change exerts a negative influence on a salesperson’s performance and customer responsiveness. Managers in all business levels can help reduce resistance by explaining how proposed changes positively affect their workload. Businesses can also provide greater job autonomy to sales persons, which give them the opportunity to implement these changes according to the nature and situation of their respective fields of service. Positive reception of change by a sales team in a business translates to effective and efficient achievement of goals that prompt the need for a change. Jaramillo, F., Mulki, J. P., Onyemah, V. & Pesquera, M. R. Salesperson Resistance to change: An Empirical Investigation of Antecedents and Outcomes. London: International Journal of

Construction Law resit Essay Example | Topics and Well Written Essays - 1500 words

Construction Law resit - Essay Example The doctrine of the responsibility to care develops significantly in the case of Donoghue vs. Stevenson (Card, Murdoch & Murdoch, 2011 p. 12) The duty of care arises precisely when an individual or a group of people carries out an activity that may cause any reasonable harm to the other party. The harm from such activity may be physical, economic or mental injuries. The activities such as driving and dispensing of the medications that lead to substantial harm can be subjected to the duty of care as provided for in the Common Law (Anson, Beatson, Burrows, & Cartwright, 2010, p. 219). The legal obligation of care is the first element of negligence. The element describes the relationship between the claimant and the defendant. The defendant in all circumstances must take critical care to prevent any possible injury or harm to the plaintiff. The duty of care is established in two significant cases. These include where the defendant and the plaintiff are operating within a relationship in which the duty of care was precedent set. In the second instance, in case the relationship is outside the provisions, the duty of care is achieved through given principles developed by the law in the case. There are three chief principles delineated in the Caparo s. Dickman that precisely specify a clear tripartite test for the duty of care. The test entails three governing question that facilitate discerning of the legality of the claim by the plaintiff to the duty of care. First, the principles confirm whether the harm was reasonably foreseeable. The second principle evaluates whether there was any degree of closeness between the claimant and the concerned defendant. The third principle questions any fair play in the implantation of the duty of care and whether there is any precluding policy of the public concern (Anson et al 2010 p. 224) According to the principles, guiding

Foreign Trade Zones Essay -- Foreign Trading Essays

Foreign Trade Zones Source: http://ia.ita.doc.gov/ftzpage/tic.html In reading and going over chapter 17, I learned a lot but what most interesting is that the field that I work in which is a Logistic Company and we export and import shipments all day long. We do lots from holding goods and receiving and shipping out goods to the Georgia Port Authority and we do custom paperwork. So this was very enlightening to me and there was lots of information on the internet. I choose this article because of the homework assignment that was given to us and I think that it was great information to anyone learning about FTZs. Foreign trade zones (FTZs) are designated sites where special customs procedures apply. Foreign trade zones in the United States are comparable to so-called free trade zones in many countries, though procedures vary widely from country to country. FTZs allow domestic activity involving foreign items to take place as if it were outside the customs territory of the United States for duty payment purposes, thus offsetting customs advantages available to overseas producers who export in competition with products made in the United States. WHAT IS AN FTZ? A foreign trade zone is a restricted access site authorized by the Foreign-Trade Zones Board, which consists of the treasury and commerce secretaries (the secretary of commerce chairs the board). FTZs, upon activation under regulations of the U.S. Customs Service, are secure areas under U.S. Customs supervision. These zones are at or near U.S. Customs ports of entry. Formal customs entry procedures don?ft apply in these zones, although FTZs are within the territory and jurisdiction of the United States. WHY WERE SUCH ZONES ESTABLISHED? Congress established the Foreign-Trade Zones Board in 1934 to license and regulates FTZs in the United States. FTZs were established for a number of reasons, the primary being to encourage and expedite U.S. participation in international trade. Foreign goods may be admitted to an FTZ without being subject to customs duties and certain excise taxes. FTZs allow deferred payment of duties until goods are entered into the commerce of the United States. Under zone procedures, the usual customs entry procedures and payment of duties are not required on foreign merchandise until it actually enters customs territory for domestic consumption. Foreign mercha... ...ms clearance. FTZs also assist state and local officials to develop their economies by attracting foreign commerce. And by helping U.S. companies improve their international competitiveness, FTZs can help retain local business and encourage the development of additional jobs. FTZs also facilitate international trade, as noted in the advantages above. DO OTHER COUNTRIES HAVE FTZs? Many other countries operate special customs areas, such as free trade zones (also referred to as FTZs) and export processing zones. U.S. exporters and other interested parties should contact the embassy or customs officials of individual countries for specific procedures, requirements, and arrangements. Although there may be several similarities, it should not be assumed that a free trade zone overseas operates under the same principles as a foreign trade zone in the United States. Contact information for foreign embassies is available by calling the Trade Information Center at 800- USA-TRADE, or by visiting www.export.gov/tic. Many U.S.freight forwarders also have working relationships with trade zones overseas and can provide information on the documentation required to ship goods through them.

Inditex Case Study

â€Å" INDITEX GROUP – ARE ITS â€Å"FAST FASHION† RESULTS SPEEDING UP AGAIN AFTER RECENT SLOW DOWNS ? † This case study has been written exclusively for use on the course Strategic Financial Management FINA 1035 at Greenwich University Business School and its partner institutions. It is to be used exclusively for this purpose. No part may be copied , emailed or reproduced for any other purpose other than stated above. Much of the data and material included in the case study is taken from the annual reports and accounts of the Inditex Group, its public statements and from its website . nditex. com. All other sources are shown in the case study. Author : Scott Duncan Lecturer Greenwich University Business School July 2010 INDITEX GROUP – ARE ITS â€Å"FAST FASHION† RESULTS SPEEDING UP AGAIN AFTER RECENT SLOW DOWNS ? Intr oduction Inditex Group – the owner of the Zara fashion chain and the world’s largest clothing and apparel group in te rms of sales – reported encouraging results for its first quarter of 2010.The Financial Times reported in June 2010 1) : â€Å"Inditex lent its weight to hopes of a recovery in European demand as the continent’s biggest fashion chain delivered forecast-beating first-quarter net profits and confirmed it would be moving its fast-fashion offer online later this year. Europe’s biggest clothing chain reported a 14 per cent increase in net sales to â‚ ¬2. 66bn ($3. 2bn) in the three months to the end of April 2010, as net income rose 63 per cent to â‚ ¬301m in response to, in particular, demand for its sharp-shouldered jackets and draped harem trousers. Sales rose 13 per cent from the beginning of February to June.The uptick comes after Hennes & Mauritz in April raised hopes of recovery in the European retail sector when it also beat net profit expectations in its first-quarter results and reported signs of improvement in the market at the start of the second q uarter. Inditex has been upbeat on prospects for the current year, with Pablo Isla, chief executive, predicting that same-store sales growth should turn positive again after a negative 2008 and virtually flat 2009. Mr Isla, who sells a third of all his clothes in Spain, was even upbeat about his home market on Wednesday. [The] reality in Spain is better than the perception you may have. I personally have a strong confidence in the dynamism of the Spanish economy going forward. † The gross margin, meanwhile rose to 59. 9 per cent against 56. 9 per cent. â€Å"[It is] likely to lead to consensus upgrades,† wrote Andrew Hughes, analyst at UBS, in a note. The shares rose 5 per cent to â‚ ¬46. 11. â€Å"Despite concerns of slower sales growth into the second quarter and as the year progresses, the first quarter beat [expectations] and stronger gross margin trends should more than compensate,† Mr Hughes added.Analysts also welcomed the news that Zara, which still ma kes a third of all its sales in Spain, would start trading online at the beginning of September in its main European markets: France, Germany, Italy , Portugal, Spain and the UK. â€Å"Online should act as a downward protection for trading news in the second half,† wrote Bernstein in a note. During the period, Inditex opened 98 stores in 29 countries, taking its footprint to nearly 5,000 stores in 76 nations around the world. Last month, it opened its first Indian shop in Delhi†.Histor y of Inditex Gr oup 2) Industria de Diseno Textil (Inditex) makes disposable chic fashions that are here today and gone tomorrow. The Spanish designer-cum-retailer uses technology and an armada of designers to master cheap chic. Inditex sells on a global scale, with over 4700 shops in 76 countries under eight different retail brands each offering different customer propositions : Stor e Br and Zara Zara Kids Pull and Bear Massimo Dutti Pr imar y Offer ing Mar ket 3) and Tar get Women†™s and men’s clothes.Childrens’ clothes Young women and men’s casual and â€Å"laid back† clothes and accessories Men’s and women’s clothes for the more â€Å"sophisticated† shopper. Also sells some children’s clothes Young women’s and men’s clothes . Stores have â€Å"cutting edge† look and are meeting points for fashion, music and street art Latest trends in young women’s clothes and accessories Women’s underwear, lingerie and nightwear Items for home eg home textiles, bedclothes, bathroom and table linen, glassware, cutlery and children’s bedding Fashion accessories eg handbags , footwear, leather goods and costume jewelleryBershka Stradivarius Oysho Zara Home Uterque The firm's stores answer to popular trends by telling designers in Spain what customers are asking for locally. Inditex responds in about two weeks with new designs. Amancio Ortega Gaona, Spain's wealthiest businessma n, founded Zara in 1975 and later created Inditex as a holding company. He got his start in the clothing business at the age of 13, when he went to work for a local shirtmaker in A Coruna , Spain, delivering the shop's goods, which included lingerie and dressing gowns.Ortega worked his way up to become an assistant manager, then shop manager, by the early 1960s. These positions gave Ortega experience not only in dealing directly with customers but also in purchasing fabrics and other materials for the shop's line of apparel. Working out of his sister's home, Ortega began developing his own designs. One day in the early 1960s, he hit upon the formula that was to become central to the operations of Inditex: that of reproducing popular fashions using less expensive materials in order to sell highdemand clothing items at lower prices.Ortega left his job and set up in business with just 5,000 pesetas (the equivalent of $25). Legend has it that Ortega's first project was to remake a popul ar but expensive dressing gown. Ortega cut the pattern himself, then, with the help of his brother and sister, began producing the dressing gown at his sister's kitchen table. Ortega's first customer was his former employer at the shirtmaker's shop. Before long, Ortega began supplying the dressing gown, as well as a growing range of housecoats and lingerie, to other clothing shops in A Coruna.By 1963, Ortega had saved up enough to open his first factory. From manufacturing, Ortega soon turned to retail, launching an initial format for his housecoats and lingerie in the early 1970s. In 1975, however, Ortega, then 39 years old, hit upon the formula that was to bring him his biggest success. In that year, Ortega opened a new retail store called Zara, which featured low-priced lookalike products of popular, higher-end clothing fashions. The store proved a success, and the following year Ortega incorporated his business under the name Goasam and began opening more Zara stores in Spain.De spite the stores' growing popularity, Ortega himself remained decidedly behind the scenes, avoiding the spotlight and developing a reputation for himself as a recluse–no photographs of Ortega were made publicly available until 2001. By the early 1980s, Ortega had begun formulating a new type of design and distribution model. The clothing industry followed design and production processes that required long lead times, often up to six months, between the initial design of a garment and its delivery to retailers. This model effectively limited manufacturers and distributors to just two or three collections per year.Predicting consumer tastes ahead of time presented inherent difficulties, and producers and distributors faced the constant risk of becoming saddled with unsold inventory. Ortega sought a means of breaking the model by creating what he called â€Å"instant† or â€Å"fast fashions† that allowed him to quickly respond to shifts in consumer tastes and to ne wly emerging trends. Ortega's dream remained unfulfilled, however, until he met up with Jose Maria Castellano. A computer expert, Castellano had worked in Aegon Espana's information technology department before becoming chief financial officer for a Spanish subsidiary of ConAgra.Castellano joined Ortega in 1984 and set to work developing a distribution model that revolutionized the global clothing industry. Under Castellano's computerized system, the company reduced its design to distribution process to just 10 to 15 days. Rather than placing the design burden on a single designer, the company developed its own in-house team of designers–more than 200 by the turn of the 21st century – who began developing clothes based on popular fashions, while at the same time producing the company's own designs.In this way, the team was able to respond almost immediately to emerging consumer trends as well as to the demands of the company's own customers – for instance by add ing new colors or patterns to existing designs. State-of-the-art production and warehousing procedures, as well as the installation of computerized inventory systems linking stores to the company's growing number of factories, enabled the company to avoid taking on the risk and capital outlay of developing and maintaining a large back inventory. The leaner, more responsive company – which adopted the name of Industria de Diseno Textil S.A. , or Inditex, in 1985 – captured the attention of Spanish shoppers. By the end of the decade, the company had opened more than 80 Zara stores in Spain. The company's fast fashion model, which completely rotated its retail stock every two weeks, also encouraged customers to return often to its stores, with delivery day becoming known as â€Å"Z-day† in some markets. The knowledge that clothing items would not be available for very long also encouraged shoppers to make their purchases more quickly. The success of the Zara model in Spain led Inditex to the international market at the end of the 1980s.In 1988, the company opened its first foreign store in Oporto, Portugal. The following year, Inditex moved into the United States. Success in that market remained elusive, however, and at the beginning of the 2000s, the company had opened just six U. S. stores. A more receptive market for the Zara format existed in France, which Inditex entered in 1990. The company quickly began adding new stores in major city centers throughout the country. Through the 1990s, Inditex added a steady stream of new markets. The company entered Mexico in 1992, Greece in 1993, Belgium and Sweden in 1994, Malta in 1995, and Cyprus in 1996.In the late 1990s, Inditex stepped up the pace of its international expansion, adding Israel, Norway, Turkey, and Japan (the latter in a joint-venture with a local partner) in 1997, then, in 1998, moved into Argentina, the United Kingdom, and Venezuela. While the bulk of the group's stores remained company owned, in certain markets, such as the Middle East, starting in 1998, Inditex's expansion took place through franchise agreements with local distributors. By 2000, Inditex had added another dozen or so countries to its range of operations, including Germany, the Netherlands, and Eastern European markets including Poland.At the same time as Inditex pursued its geographic expansion, it also began expanding beyond its flagship Zara retail format. The company launched the Kiddy's Class children's wear format as a subgroup of the main Zara concept in the early 1990s. In 1991, the company added an entirely new retail format, Pull & Bear, which began providing â€Å"urban† fashions. By the beginning of the 2000s, the Pull & Bear chain had grown to 300 stores in nearly 20 countries; it also produced its own offshoot format, Often, targeting the 20- to 45-year-old men's segment, in 2003.Inditex went upmarket in 1991 when it bought 65 percent of the Massimo Dutti group. Indite x took full control of Massimo Dutti in 1995 and began building it into a chain of nearly 300 stores in 23 countries. While Massimo Dutti appealed to a more sophisticated men's and women's fashions market, the company targeted the young female market in 1998 with the creation of a new format, Bershka. That retail chain quickly evolved into a network of more than 200 stores operating in 11 countries. Inditex continued adding new formats at the turn of the 21st century.In 1999, the company acquired Stradivarius, a youth fashion chain present in nine countries. In 2001, Inditex added its lingerie format, Oysho. In 2003, Inditex moved beyond the garment trade for the first time, launching its own home furnishings concept, Zara's Home and in 2008, launched its fashion accessories chain – Uterque. Meanwhile, Inditex had begun a corporate evolution as well. As Ortega approached retirement, and no members of his immediate family appeared likely to succeed him in the business, the com pany looked to the public market to ensure its future.In 2001, Inditex listed its stock on the Bolsa de Madrid, one of the most successful initial public offerings of the year. Ortega's sale of more than 20 percent of his holding in Inditex made him Spain's wealthiest man. In 2010, he still controls 59% of Inditex’s shares (see Annex 1) and was ranked by Forbes Magazine as the 9th richest man in the world in their annual list of billionaires – up 1 place from his ranking in 2009 – with a net worth estimated at $25 billion. He is now 74 years old. Inditex moved to a new corporate headquarters in Arteixo, outside of A Coruna in 2000.In 2002, the company began construction on a state-of-the-art logistics center in Zaragoza. At the same time, Inditex continued adding to its array of international markets, opening stores in Luxembourg, Iceland, Ireland, Jordan, and Puerto Rico in 2001; Switzerland, Finland, El Salvador, and Singapore in 2002; and Hong Kong in 2003. I n the 6 years from 2004, Inditex has more than doubled its number of stores from just over 2000 in mid 2004 to over 4600 by 31 January 2010. Inditex’s financial year end is 31 January.In line with Inditex’s annual reports, this case study refers to its year ending 31 January 2010 as â€Å"Financial year 2009† or â€Å"2009†. Similar abbreviations are made for earlier years . Inditex Gr oup Stor e Number s and Locations in 2010 At financial year end for Inditex for 2009 – 31 January 2010 – Inditex had 4607 stores as follows: The analysis of Inditex’ s 2009 sales for each of its 8 store concepts was as follows : Within the total, 3983 were company managed stores and 624 were franchised – see Annex 2 for details. In 2009, 92% of sales were in company owned stores.Geographically, 1900 of the stores were in Spain, 1856 stores were in other European countries, 485 stores were in Asia and Africa and 366 stores were in North and South America – see Annex 3 for details. The Group opened 343 stores in 2009 and increased its retail network in all of Europe's major markets with noteworthy growth in Russia (37 new stores) and Poland (34). In Asia, Inditex continued its strategic push into the region’s top three markets, which posted significant growth, with 41 new stores in China, 12 in South Korea and 10 in Japan.Retail sales area increased by 8% in 2009 – see Annex 4 for details by store concept. During its first quarter 2010 from 1 February to 30 April , Inditex opened a further 98 stores as follows : This took the total number of stores to 4705 at 30 April 2010. The percentage of Inditex’s sales achieved in each geographical region for the last 3 financial years was as follows : 2009 31. 8 % 45. 7 10. 2 12. 2 2008 33. 9 % 44. 8 10. 7 10. 5 2007 37. 5 % 42. 4 10. 8 9. 4 Spain Europe excl.Spain Americas Asia The Mar ket The apparel retail industry consists of the sale of all menswear, wom enswear and childrenswear. The sector also includes footwear, sportswear and accessories. The menswear sector includes all garments made for men and boys. It includes both outer and under garments. The womenswear sector consists of the retail sale of all women's and girls' garments including dresses, suits and coats, jackets, tops, shirts, skirts, blouses, sweatshirts, sweaters and underwear .Both womenswear and menswear can be segmented by: – purpose or use of the clothing item eg casual wear, essentials, activewear, formal wear , special occasion formal wear and outerwear – age group – lifestyle eg â€Å"sporty†, â€Å"conservative † , â€Å"fashion conscious† , â€Å"hippie†, â€Å"urban†, â€Å"rural† – ethnic group styles eg Afro-Caribbean , African American , Asian or middle eastern or music group styles eg â€Å"rapper†, â€Å"reggie†, â€Å"punk†, â€Å"rocker† – price eg ranges from low price to expensive designer label to exclusive â€Å"haute couture† of Paris, Milan, London, Tokyo and New York or by a combination of these factors.The childrenswear sector is defined as sales of garments for children between the ages of 0-2 years. The socio-political environments coupled with the need for individual and group identity makes retail clothing essential to consumers. Style, however, is an abstract concept that defines individuals, is often an extension of personality and therefore highly individualized. Fashion, by its very nature, is unpredictable. The products are determined by trends in society, designers and creative industries and are subject to sharp and unpredictable changes.Where customer brand loyalty exists, it is more likely to be to the designer than the retailer, although this is usually towards the top end of the industry. Counterfeiting of brands is a problem in parts of the clothing and accessories industry. Mar ket in Eur ope T he European apparel retail industry grew by 2. 1% in 2008 to reach a value of â‚ ¬287. 7billion ($420. 9 billion). Its recent history per Datamonitor 4) was as follows : The consumer market for clothing and footwear in the European Union (or EU) has undergone important changes in recent years 5).Arguably, the greatest impact has come from market forces under the auspices of the World Trade Organisation (WTO) as a ten-year transitional Agreement on Textiles and Clothing (ATC) came to an end with the abolition of textile and clothing import quotas on 31 December 2004. With the removal of quotas, there was an initial increase in relatively cheap imports of clothing and footwear into the EU, mainly originating from China. For example, in the first 40 days after the end of the ATC, imports of trousers from China were 3. 3 times higher than during the whole of 2004 and imports of pullovers 4. times higher. A bilateral agreement between the EU and China (the so-called Shanghai Agreement ) on a further, transitional period during which the growth of imports of clothing could be managed through until the end of 2007 was agreed in June 2005. In addition to trade developments, consumer groups and other bodies are increasingly holding manufacturers and retailers accountable for ensuring that social standards and working conditions of their suppliers meet international labour standards. There are examples of retailers responding to this pressure.For example, in October 2007 the Inditex group signed an International Framework Agreement on corporate social responsibility with the International Textile, Garment and Leather Workers’ Federation (ITGLWF), which expresses the company’s commitment to respect fundamental rights at work throughout their entire production chain. Fair trade garment initiatives have also been taken, generally to ensure that a fair price is paid to producers who meet minimum social, and in some cases environmental, standards and that tra ding relationships between producers and buyers are more equal, rather than guaranteeing core labour standards.There has also been a response within the EU to concerns about environmental and safety issues. These concerns have predominantly focused on the use of chemicals (such as dyes, pigments or bleaches in the clothing manufacturing process) and on waste water discharge. On 1 June 2007, new legislation on chemicals and their safe use came into force across the EU. REACH (Registration, Evaluation and Authorisation of Chemicals) aims to improve the protection of human health and the environment through the better and earlier identification of the intrinsic properties of chemical substances.Within the EU 5) : – household expenditure on clothing and footwear accounted for 5. 7% of total household consumption expenditure in 2005 – The vast majority of this, almost three quarters, was spent on clothing garments – Spending on clothing and footwear tended to rise as a function of income, with the upper income 20 percent in the 27 countries of the EU devoting 6. 1% of their total household budget to these products, while those in the lowest income 20 percent spent 5 % – the share of total expenditure spent on clothing and footwear was generally much higher among households with dependent children, rising to 7. % of the household budget for those households comprising two adults with dependent children, compared with 4. 6 % of the budget for single persons. – Annual expenditure on clothing and footwear averaged â‚ ¬800 per person in the 27 countries of the EU in 2006, with national averages ranging from â‚ ¬100 per person in Romania to â‚ ¬1200 per person in Italy . See Annex 5 for details of 2000 and 2006 expenditure per person. – Over the period from 2000 to 2006 , the volume of clothing and footwear bought rose in most countries of the EU particularly in the United Kingdom and Poland where volumes increased by ov er 40%.In contrast , Germany and Italy reported declines in the volume of clothing and footwear bought (the only member states of the EU to do so). Details are shown at Annex 6 for the 6 countries which account for over 70% of the EU’s population – Germany, France, Italy ,UK, Spain and Poland . – Over the same 2000- 2006 period, whilst consumer prices for clothing and footwear declined by 0. 1% for the EU overall, there were substantial differences in the â€Å"Top 6† countries listed above.The UK recorded price decreases of over 20% , Poland of over 15% and Germany of over 2%, whilst price increases were recorded in Italy (over10%) , Spain ( over 13%) and France ( 1%) – see Annex 6. – Between 2007 and 2008 , the volume of clothing and footware bought in the EU overall declined by 0. 5% . France , Italy and Spain recorded declines of over 2% whilst Germany , UK and Poland recorded increases – see Annex 6. – In 2008 , UK househo lds spent less on average per week on clothing and footwear than at any time since 2001-02 6) – Early indications are that volumes also fell in 2009 versus 2008 in Europe.France reported a year on year decline of 3. 6% . a) Mar ket Segmentation by Gender and Age Womenswear sales dominated the European apparel retail industry in 2008 4) generating 54. 4% of the industry's overall revenues – â‚ ¬157 billion ($ 229 billion) . Menswear accounted for 30. 9 % – â‚ ¬89 billion ( $130 billion)- and Infantswear the remaining 14. 7%. Details of womenswear market growth and segmentation in Europe are shown at Annex 7 and of the menswear market in Europe at Annex 8. b) Analysis by Major Countr y Italy accounts for 19% of the European apparel retail industry's value , Germany 18. % and the UK 14. 4% . Shares for other countries are shown below: c) Mar ket Value For ecast The European apparel retail industry was forecast by Euromonitor to grow by only 1. 3 % in 2009 ver sus 2008 – including price changes. In 2013, the European apparel retail industry is forecast to have a value of â‚ ¬320 billion ($467. 6 billion), an increase of 11. 1% from 2008. Details are shown at Annex 9. d) Retail Sour ce of Pur chases Consumers in Europe are able to purchase clothing and footwear from a wide variety and large number of retailers, specialised and non- specialised.Specialist clothing and footwear retailers comprise chains (such as H, C or Zara) and independent clothes stores. Nonspecialist retailers include department stores (that have clothing and footwear departments), hypermarkets and supermarkets, as well as mail- order retailers. According to Datamonitor, 69% of purchases of womenswear and 55% of purchases of menswear in 2008 was in chains or independent specialist clothing, footwear and accessories shops . Purchases at hypermarkets, supermarkets and discounters accounted for 19. 5% of womenswear sales and 12. 1% of menswear with department stor es taking a 6. 9% of womenswear and 24. % of menswear in 2008 ( see Annexes 7 and 8). There are generally higher levels of retail concentration in northern Europe5). The overwhelming majority of clothing and footwear sales in Germany, France and particularly the United Kingdom are made in non-specialist stores. The popularity of independent clothing and footwear retailers is considerably higher in southern Europe. For example, in Italy and Spain, the highest proportion of clothing sales was among independent retailers (65% and 53 % respectively in 2004), and this tendency was even stronger in terms of footwear (76 % and 88 % respectively in 2003).Despite these differences, clothing markets in Europe are generally becoming more concentrated, as clothing chains, department stores and supermarkets/ hypermarkets selling clothing and footwear open additional outlets in many of the countries that have joined the EU since 2004. Indeed, the structural make-up of clothing retailers in the EU has changed considerably over the past 15 years, according to a 2007 report on ‘Business relations in the EU clothing chain’ carried out for and funded by the European Commission 5).The market share of independent retailers in the five largest EU markets (Italy, Spain, France, Germany and the United Kingdom, that together account for almost three quarters of the EU’s clothing market) declined from 46. 8 % of total clothing sales to 27. 1 % by 2007. In contrast, there was steady growth in the share of speciality chains (from 18. 7 % to 25. 1 %), hypermarkets and supermarkets (5. 1 % to 6. 8 %) and emerging formats such as variety stores and large sports chains (whose share of clothing sales collectively rose from 14. 0 % to 27. 2 %).A recent survey on consumer satisfaction 5) provides further information on the shopping habits of European consumers for clothing and footwear. More than half (55. 7%) of those surveyed in the EU in 2008 replied that they themselves or a member of their household had bought clothing and footwear in a retail chain store, a somewhat higher proportion than for small, independent clothing retailers (50. 2 %). Department stores (30. 7%), supermarkets/ hypermarkets (23. 0 %) and street markets (16. 3 %) were also popular places for buying clothes and footwear – see Annex 10.Furthermore, compared with a number of other products, a relatively high proportion of European consumers used mail or phone order (8. 0%) or the Internet (6. 1 %) to purchase clothing and footwear. When purchasing clothing and/or footwear in 2008, 10. 9 % of EU consumers reported facing at least one problem 5). The most common complaint was product quality (69% of unsatisfied customers) followed by problems returning unwanted goods (9. 2% of respondents) then quality of service provided (8. 8% of respondents). Details are shown at Annex 11.This data also provides an insight into consumers’ priorities when purchasing clothing and foo twear . Mar ket in USA Americans spent almost $326 billion on clothing and footwear in 2009 equivalent to only 2. 98% of disposable personal income – the lowest ever in U. S. history. Spending on clothing as a share of income has fallen in 20 out of the last 22 years, from 4. 78% in 1988 to less than 3% in 2009 – see Annex 12 for details . Quality, variety and availability have all improved over the years . The same applies to footwear.Since 1992, prices in general have risen by 57%, while prices for clothing have fallen by 8. 5% – see annex 13. With significantly falling prices in real terms, clothing has become more and more affordable almost every year, requiring smaller shares of US household income. This has freed up disposable income that can now be spent on other consumer goods (eg electronics, travel, entertainment, etc. ). Mar ket in Asia Pacific 7) The Asia-Pacific apparel retail market has been growing at a robust pace for the last few years. The Asia -Pacific apparel retail industry generated total revenues of $224. million in 2008, representing a compound annual growth rate (CAGR) of 4. 1% for the period spanning 2004–08. The performance of the industry is forecast to improve further and to reach a value of $259. 6 million by the end of 2013. Key Retail Competitor s Inditex’s key competitors in Europe include : Hennes and Mauritz ( H ) Levi Strauss ( via franchised and company managed stores and third party retailers) Adidas sportswear ( including Reebok ). In the UK, key competitors include Primark ( a division of Associated British Food) , Next, and Marks and Spencer . ASOS. com is a major retailer of men’s nd women’s clothes and accessories via the internet and is now the UK’s largest independent on-line fashion retailer. Worldwide, key competitors also include Gap and â€Å"Fast Retailing† (Japanese parent company of Uniqlo and Asia’s biggest clothing retailer). In terms of s ales value, Inditex overtook Gap in 2009 and is now the world’s largest clothing and apparel retailer. Summary financial profiles of Hennes and Mauritz, Levi Strauss , Primark and Gap are shown at Annexes 14 ,15 and 16. A recent article about the current prospects for â€Å"Fast Retailing† is shown at Annex 17. Manufactur ing Sour ces – Gener alKey suppliers to the retail clothing industry are clothing manufacturers and wholesalers, with retailers able to source from both. Recently, significant increases in power cost, dyes & chemical cost and rapidly rising cotton cost have strengthened supplier power in an industry that relies on the availability of raw material. The wholesale and clothing manufacturing sectors in most countries, however, are fairly fragmented. As international trade liberalizes, clothing manufacturers in the developed regions such as Europe and America face substantial competition from manufacturers in low-wage regions such as Asia eg from Ch ina. Apparel manufacturing is almost always labor intensive, due to the difficulty of automating processes such as the sewing of garments. ). Key issue for clothing retailers in selecting its suppliers include : – price and quality – volumes – the ability of its suppliers to cope with sudden changes in demand in an industry susceptible to changes in fashion – social, political and environmental pressures to ensure that suppliers in developing countries meet minimum international ethical standards for working, social and environmental conditions.Many major retailers such as Inditex, Gap and Primark now undertake regular audits of their suppliers to ensure that such standards are met and maintained and report their findings as part of their corporate social responsibility in their annual reports. Manufactur ing Pr ocesses The key processes used in garment manufacture are as follows: Cloth manufacturing ( eg cotton or wool) – spinning – weaving – dyeing – pattern printing – finishing. Certain aspects are labour intensive eg sewing . Garment manufacturing from the finished cloth: – cutting – sewing and assembly – buttons and accessories attachment.There have been many technological developments in materials used over recent years including non-iron shirts, washable silk and man- made fibres. Key Aspects of the Inditex Business Model 3) A) Over view The Inditex business model has a high degree of vertical integration compared to other models developed by its international competitors. It covers all phases of the fashion process: design, manufacture, logistics and distribution to its own managed stores and has a strong customer focus in all its business areas.The key element in the organisation is the store, a carefully designed space conceived to make customers comfortable as they discover fashion concepts. It is also where Inditex obtains the information required to adapt the offer to meet customer demands. The key to this model is the ability to adapt the offer to customer desires in the shortest time possible. For Inditex, time is the main factor to be considered, above and beyond production costs.Vertical integration enables Inditex to shorten turnaround times and achieve greater flexibility, reducing stock to a minimum and diminishing fashion risk to the greatest possible extent. B) Design The success of Inditex’s collections lies in the ability to recognise and assimilate the continuous changes in fashion, constantly designing new models that respond to customer desires. Inditex uses its flexible business model to adapt to changes occurring during a season, reacting to them by bringing new products to the stores in the shortest possible time.The models for each season -over 30,000 in 2009 – are developed in their entirety by the creative teams of the different chains. Over 300 designers -200 for Zara alone- take their main inspiration from both the prevailing trends in the fashion market and the customers themselves, through information received from the stores. C) Manufacturing A significant proportion of production takes place in the Group’s own factories, which mainly manufacture the most fashionable garments.The Group takes direct control of fabric supply, marking and cutting and the final finishing of garments, while subcontracting the garment- making stage to specialist firms located predominantly in the North-West of the Iberian peninsula. The Group’s external suppliers, a high percentage of which are European, generally receive the fabric and other elements necessary for making the clothing from Inditex. The number of garments produced and available for sale at Inditex’s stores has grown as follows from financial years 2005 to 2009 :On 31 January 2010, Inditex had a network of 1,237 suppliers with which it maintains stable relationships and which are governed by its External Manufacturers and Workshops Code of Conduct. This code describes the minimum ethical, working practice, quality, safety and environmental standards expected of its suppliers and must be accepted to maintain commercial relations with the Group. Further details of Inditex network of suppliers is shown at Annex 18. Inditex audits its network of suppliers regularly and ceased using 145 suppliers in 2009 and 175 in 2008 because of their non-compliance.In 2008, the manufacturing sources in terms of volumes of garments produced for Inditex were as follows : 46% 11% 36% 5% 2% European Union Non –EU Europe Asia Africa Americas D) Logistics All production, regardless of its origin, is received at the logistical centres for each chain, from where it is distributed simultaneously to all the stores worldwide. The distribution takes place twice a week and each delivery always includes new models, so that the stores are constantly refreshing their merchandise and offer.The logistics system, based on soft ware designed by the company’s own teams, means that the time between receiving an order at the distribution centre to the delivery of the goods in the store is on average 24 hours for European stores and a maximum of 48 hours for American or Asian stores. Inditex logistics centres are located in Arteixo (A Coruna), Naron (A Coruna), Zaragoza, Meco (Madrid), Tordera, Palafolls and Sallent de Llobregat (Barcelona), Leon and Elche (Alicante).Together, their surface area exceeds one million square metres. Further details are shown at Annex 19. In 2008, 700 million garments were distributed by 5000 employees at Inditex logistics centres. E) Stor es In Inditex, the point of sale is both the end and start of its value adding processes, as the stores act as market information gathering terminals, providing feedback to the design teams for each of the 8 formats and reporting the trends demanded by customers. As retailers, the stores constitute the chains’ main advertising medi um.Their chief characteristics include: – Preferred locations in the world’s main shopping streets – Meticulously designed window displays – Unique internal and external store design – Tailored coordination and display of the product – Excellent customer service. The main development strategy for the Inditex sales formats is the opening of stores managed by companies in which Inditex is the sole or majority shareholder. In 2009, 86% of stores were own managed. In smaller or culturally different markets, the Group has extended the store network through franchise agreements with leading local retail companies.The main characteristic of the Inditex franchise model is the total integration of franchised stores with own managed stores in terms of product, human resources, training, window- dressing, interior design and logistical optimisation. This ensures uniformity in store management criteria and a global image in the eyes of customer around t he world. F) Other Aspects of Mar keting 1) Internet Each of Inditex’s 8 store formats has its own website and these are constantly updated with the latest fashion offerings. In 2009 , the store websites were launched and included in social networking websites. 2) Affinity cardThe Intitex Affinity Card is the Group’s payment and loyalty card valid for its holders in any Group establishment: Zara, Massimo Dutti, Bershka, Pull and Bear, Stradivarius, Oysho, Zara Home and Uterque. Available in Spain for more than 15 years, the Affinity Card is also held by customers in Mexico and Greece where it was launched in 2007, and in Portugal where it has been available since 2008. Currently there are more than a million Affinity Card holders in these four countries. All of them have a card that offers financial advantages and methods of payment based on the holders’ needs. Inditex Financial Per for manceA summary of Inditex’s financial performance over the last 6 yea rs is as follows : Details of Inditex’s : – P for 2006 to 2009 are shown at Annexes 20-22 – sales and contributions by store format are shown at Annex 23 – balance sheets for 2006 to 2009 at Annexes 24 and 25 – 2006 to 2009 cash flow statements at Annexes 26 and 27. Details of Inditex’s 1st Quarter financial results for 2010 are shown at Annexes 28 and 29. Boar d of Dir ector s Shareholders approved the 2009 report at Inditex’s July 2010 Annual General Meeting including the proposed dividend of â‚ ¬748 million – up 13% on the previous year.Inditex’s share price closed at â‚ ¬51. 20 on 29 July 2010 – up 38% on its price of â‚ ¬38 a year ago – see Annex 30. The board of Inditex consisted of 9 Directors as at 31 January 2010 – 3 Executive Directors and 6 Non Executive Directors. The Executive Directors are : Amancio Ortega Gaona ( Chairman) Pablo Isla Alvarez de Tajera ( CEO and 1st Deputy Chai rman. Appointed to board in 2005) – Antonio Abril Abadin ( Board Secretary and General Counsel). Their total remuneration was â‚ ¬4. 35 million in the year ended 31 January 2010. The senior management of Inditex who are not executive directors is shown at Annex 32.Their total remuneration was â‚ ¬10. 9 million in the year to 31 January 2010. Details of the board including the 6 non executive directors are shown at Annex 31. – Employees Inditex is a multi-cultural and multi-racial company with 92,301 employees at 31 January 2010 representing more than 140 nationalities. On-going training plays an essential role, particularly that of store staff. This training, which also includes basics in customer service, focuses on specialist knowledge of fashion trends and the ability to seize and interpret the information that store staff receive from customers every day.The number of employees has grown as follows : The largest percentage are employed in the stores as follow s : Inditex directly owns 13 textile manufacturing companies in Spain and 12 logistic companies including one for each of its 8 store formats. Inditex also has its own in-house building contractor and several companies to manage its store and other properties. These companies are wholly owned by Inditex and their financial results and employee numbers are fully consolidated in those of the Inditex group. In 2009 : – 81. 4% of Inditex’s employees were female – 18. % were male – 40% of employees were full time – 60% were part time. Inditex’s Str ategy At his presentation at the July 2010 AGM, Inditex’s Deputy Chairman and CEO, Pablo Isla underscored confidence in the Inditex business model and its clear strategic focus on international expansion, currently targeted at European and Asian markets. He confirmed that Inditex has earmarked about â‚ ¬570 million in capital expenditure to open between 365 and 425 new stores in its financial year 2010 of which approximately 95% will be in Inditex’s international markets outside Spain.Some 70% of the appropriate contracts have been signed although in some cases openings may be delayed until 2011. The planned increases by store format are as follows: â€Å"Our priority is to focus growth in Europe and Asia,† said Isla. â€Å"We see significant opportunities in Eastern Europe and the Russian Federation, and there is a great potential to expand profitably in Europe for many years, as our market share is below 1% in most countries. † He said the main areas of growth for Asia are China, Japan and South Korea. â€Å"We see huge long-term potential for Inditex in Asia markets,† he said.Over the next three years, the company expects to see space growth of between 8% and 10%. Isla was asked earlier by analysts why they aren't paying out an even bigger portion of net income in dividends given the group's huge cash balance. â€Å"Our main priority is t o invest in the future growth of the business. We always want a high level of flexibility – we always wanted more steady growth in the dividend, rather than big jumps,† he said. He also confirmed that Zara will start online sales in France, Germany, Italy, Portugal, Spain and the UK on 2 September, 2010.Key Issue to be Consider ed Is Inditex’s current strategy likely to succeed . If so why ? Or do you conclude that the strategy needs to be adjusted in light of your analysis of this case study ? If so, what changes do you propose and why ? References : 1) 2) 3) 4) FT article 9 June 2010 Answers. com 2010 Inditex Press dossier 2009 Datamonitor â€Å"Apparel retail in Europe† August 2009 . The industry value is calculated at retail selling price (RSP), and includes all taxes and levies. The data for Europe includes Russia, Poland, Czech Republic, Hungary, Romani and Ukraine.All currency conversions in the Datamonitor report and forecasts have been calculated at constant 2008 annual average exchange rates. 5) European Commission report â€Å" Consumers in Europe† 2009 published by Eurostat 6) UK Office for National Statistics January 2010 7) Datamonitor report â€Å"Apparel retail in Asia Pacific† August 2009 Shar eholdings of Dir ector s in Inditex as at 31 J anuar y 2010 Annex 1 Annex 2 Annex 3 Page 1 Annex 3 Page 2 Annex 4 Sales Ar ea by Stor e Concept – Squar e Metr es Totals 2,180,889 1,914,493 EU Expenditur e on Clothes and Footwear – â‚ ¬ per head 000 Countr y EU (27 countries) 700 Belgium 700 Bulgaria N/A Czech Republic 200 Denmark 800 Germany 800 Estonia 200 Ireland 900 Greece 600 Spain 600 France 700 Italy 1100 Cyprus 800 Latvia 200 Lithuania 100 Luxembourg1100 Hungary 100 Malta 500 Netherlands 800 Austria 1100 Poland 200 Portugal 600 Romania N/A Slovenia 400 Slovakia 100 Finland 600 Sweden 700 United Kingdom 1000 Memo : Turkey 300 Iceland 1100 Norway 900 Switzerland 900 2006 800 800 N/A 300 N/A 8 00 400 900 800 700 700 1200 900 N/A 400 1100 200 400 800 1100 200 N/A 100 500 200 800 N/A 1100 300 1100 N/A 900Annex 5 Source : â€Å"Consumers in Europe† 2009 edition published by Eurostat , the statistical office of the European Commission Pr ice and Volume Changes within Household Expenditur e on Clothing and Footwear – EU Aver age and Selected Countr ies (a) Annex 6 Germany France Italy UK Spain Poland EU Average (b) Cumulative Percentage Price Increase/(Decrease) 2000-6 (2. 6) % 0. 1 10. 4 (23. 5) 13. 3 (15. 7) 0. 1 % Cumulative Percentage Volume Increase/(Decrease) 2000-6 (1. 7) % 5. 8 (8. 3) 44. 5 2. 7 44. 3. 5 % Percentage Volume Increase/Decrease) 2006 -7 2007 -8 3. 1% 1. 7 0. 1 2. 7 4. 5 4. 5 2. 0% 1. 4 (2. 1) (2. 6) 4. 4 (2. 5) 11. 2 (0. 5)% (a) = The 6 countries account for over 70% of total EU population (b)= over the 27 member countries Eur opean Mar ket for Womenswear Annex 7 Annex 8 Eur opean Mar ket for Menswear Eur opean Appar el Mar ket Value For eca sts Annex 9 Page 1 Eur opean Appar el Mar ket Value For ecasts Annex 9 Page 2 EU Clothing and Footwear Sour ces of Pur chase 2008 Annex 10Note that these figures relate to trips made by consumers purchasing clothing and footwear, and they do not reflect the average expenditure or value of sales made in each retail format Customer Complaints – Pr oblems faced by Consumer s when Pur chasing Clothing or Footwear in the EU in 2008 Per centage shar e of those exper iencing pr oblems (multiple answer s allowed) Annex 11 Source: ‘Retail satisfaction survey’, IPSOS for the European Commission, August/September 2008 USA Clothing and Footwear Mar ket Annex 12 Annex 13USA Mar ket – Consumer Pr ice Index Changes Annex 14 Summar y Financial Pr ofiles of Selected Appar el Retailer s H – 1738 stores in 33 countries as at November 2008 Levi Strauss Gap Latest results for Gap for its financial year ended 31 January 2010 (â€Å"Fiscal Year 2009†) are shown in next annex . At average 2009 calendar year exchange rates of US $ 1. 3948 = â‚ ¬1 , Gap’s net sales totalled â‚ ¬ 10,179 million in 2009 – some â‚ ¬900 million lower than Inditex’s sales of â‚ ¬11,083 million for the same period ended 31 January 2010 .January 2010 average exchange rate was US$ 1. 4272 = â‚ ¬1 Exchange rate source : Banque de France Annex 15 Source : The Gap Inc. annual report and accounts Annex 16 Number of stores : 191 Number of stores opened in year : 12 – 5 in Spain -4 in the UK – 1 in each of Netherlands, Germany and Portugal ( first Primark stores in each country) Planned store openings in next year : 11 ( including first store in Belgium) Selling space : 5. 9 million square feet – an increase of 9% versus prior year Pr imar k – Key Data for Year Ended 12 September 2009Revenue for year : ? 2314 million ( ? 1933 m in prior year) Year on year sales growth : 20 % – partly increase in selling sp ace – partly like- for- like sales growth of 7% Operating profit for year : ? 252 million ( ? 233 million in prior year) Source : ABF annual report and accounts Annex 17 Cur rent Prospects for Uniqlo’s parent â€Å"Fast Retailing† Tadashi Yanai – the president of Fast Retailing, Japan’s wealthiest man (net worth $9. 2bn), has seen the value of his 27 per cent holding in the Uniqlo parent fall by more than a quarter this year.That’s a slump three times worse than the benchmark, making Asia’s biggest clothier the worst-performing retailer across the region. Having watched new lines like polo shirts and jeans fail to fly off the shelves, even after steep price cuts, Yanai-san is now betting big on camisoles, leggings and Silky Dry, a summer version of its blockbuster heat-trapping underwear. This is no ordinary lean spell sales growth slowed the most in four years in the three months to May, causing Fast Retailing to trim its net income estimate for the year ending August by 5 per cent.Nimbler rivals such as United Arrows (up 22 per cent since the beginning of the year) and Honeys (+143 per cent), both between 30-40 times smaller by market capitalisation, will want to ensure Uniqlo’s discounting continues. For all its determination to build overseas – this year it added stores in China and Russia to its UK, US, France and South Korean portfolios – the company is on course to get 95 per cent of this year’s operating income from anaemic Japan. It remains a hard stock to divest, though.Not only are Fast Retailing’s returns on invested capital consistently about 50 per cent better than peers’, it is that rare thing in Japan: a stock worth a fifth more today than it was ten years ago (over which period the Nikkei has shed more than two-fifths). BACKGROUND NEWS Japan’s Fast Retailing on Thursday cut its annual outlook for the first time in three years after the breakneck p ace of growth at its Uniqlo budget fashion chain came screeching to a halt in recent months, reports Reuters.Fast Retailing enjoyed strong sales last year even as other retailers were hit by weak consumer spending, attracting thrifty shoppers with hit products like heat-trapping underwear and savvy marketing. But Uniqlo’s same-store sales have been on the decline in the second half of the current financial year to August 31st, which some analysts see as a sign that the recent round of robust growth has run its course. Source – FT article Published: July 8 2010 Annex 18 Details of Inditex Suppliers Key supplier countries include Bangladesh, India, Turkey, Morocco , Spain, Portugal and Cambodia (Source : 2008 annual report)Annex 19 Inditex Logistics Centr es in 2009 Inditex Pr ofit and Loss Account for Financial Year s 2009 and 2008 Annex 20 Notes refer to details in Inditex annual report for 2009 – see Inditex. com/investor relations/annual reports/2009 Operating Expenses consisted of 2009 – â‚ ¬m 2008 – â‚ ¬m 2007-â‚ ¬m 2006- â‚ ¬m Staff costs 1,791 1,703 1,473 1,251 Store property 1,134 1,028 855 718 rental costs Other Store 1,027 976 898 831 operating costs, logistics and general overhead costs a) 3,953 3,708 3,226 2,800 a) = Including transportation of merchandise from logistic centres to stores Annex 21Details of â€Å"Financial Results† shown in Inditex P& L â€Å"Financial Results† shown in the consolidated P& L consist of ( â‚ ¬000) : And for 2007 and 2006 : Inditex Pr ofit and Loss Account for Financial Year s 2007 and 2006 ( in â‚ ¬000s) Annex 22 Net Sales Cost of merchandise Gross Profit Operating Expenses Other net operating expenses & income Oper ating Pr ofit (EBITDA) Amortization and Depreciation Oper ating Pr ofit (EBIT) Financial Results Equity Accounting Losses Income Befor e Taxes Income Tax Net Income Net income attributable to minority interests Net Income Attr ibutable to t he Par entEarnings per share (â‚ ¬cents) Notes refer to details in Inditex annual report for 2007 – see Inditex. com/investor relations/annual reports/2007. Details of Operating Expenses and â€Å"Financial Results† are shown in earlier annexes Sales and Pr ofit Contr ibutions by Stor e For mat 2007- 2009 Store Format No. of Stores at 31 Jan 2010 1608 626 497 651 515 392 261 57 4607 Net Sales in Financial Year 2009 â‚ ¬m 7077 771 790 1177 702 280 243 44 11084 Annex 23 Zara (incl Zara Kids) Pull and Bear Massimo Dutti Bershka Stradivarius Oysho Zara Home Uterque TotalsOperating Profit EBIT in 2009 â‚ ¬m 1105 101 117 196 149 38 25 (2) 1729 Store Format No. of Stores at 31 Jan 2009 1520 583 470 591 456 374 239 31 4264 No. of Stores at 31 Jan 2008 1361 519 426 510 381 290 204 0 3691 Zara (incl Zara Kids) Pull and Bear Massimo Dutti Bershka Stradivarius Oysho Zara Home Uterque Totals Store Format Net Sales in Financial Year 2008 â‚ ¬m 6824 720 722 1026 633 242 2 22 17 10407 Net Sales in Financial Year 2007 â‚ ¬m 6264 614 696 925 521 213 201 0 9434 Operating Profit EBIT in 2008 â‚ ¬m 1067 119 108 155 144 21 14 0 1628 Operating Profit EBIT in 2007 â‚ ¬m 1091 99 106 154 119 40 16 0 1625Zara (incl Zara Kids) Pull and Bear Massimo Dutti Bershka Stradivarius Oysho Zara Home Uterque Totals Inditex Balance Sheets for Financial Year s 2009 and 2008 Annex 24 Notes refer to details in Inditex annual report for 2009. The share capital of Inditex amounts to â‚ ¬93. 5 million divided into 623. 3 million shares each with a par value of 15 Eurocents – fully subscribed and paid – at 31 January 2010 . This has remained unchanged since Inditex’s financial year 2006 Inditex Balance Sheets for Financial Year s 2007 and 2006Annex 25 Notes refer to details in Inditex annual report for 2007 Inditex Cash Flow Statements for 2009 and 2008 Annex 26 Annex 27 Inditex Cash Flow Statements for 2007 and 2006 Inditex Gr oup P& L for 1st Qua r ter s 2010 and 2009 Annex 28 Annex 29 Inditex Gr oup Balance Sheet for 1st Quar ter s Ending 30 Apr il 2010 and 2009 Inditex Shar e Pr ice fr om August 2009 to J uly 2010 Annex 30 Source : Inditex. com/ Investor Relations Annex 31 Boar d of Dir ector s of Inditex as at 31 J anuar y 2010The 6 Non Executive Directors are : – Flora Perez Marcote ( representing Gartler S. L. , the holding company controlled by Mr Ortega Gaona and owning just over 50% of Inditex’s shares) – Carlos Espinosa de los Monteros Bernaldo de Quiros ( board member from 1997) – Francisco Luzon Lopez ( board member from 1997) – Irene Ruth Miller ( board member from 2001) – Juan Manuel Urgoiti Lopex de Ocana ( board member from 1993) – Jose Luis Varquez Marino ( board member from 2005) Senior Management of Inditex as at 31 J anuar y 2010 Annex 32