Country Case Report for China Essay Example for Free

Country Case Report for China Essay The third largest land area in the world belongs to the People’s Republic of China. Presently, its population is the largest on the record and its capital, Beijing is the economic and cultural center. China’s economic growth greatly improves due to the trend of poverty reduction during the period of 1980-1990. From 542 million to 375 million, shrinking by 167 million, China’s poverty population exceedingly reduced. Angang stated that China’s achievements in poverty reduction made huge contributions to the cause of poverty reduction of the world (2). According to World Bank, the poverty population of the world dropped off by 98. 3 million. Among the five Asian countries with the most condensed poverty population are India, China, Pakistan, Bangladesh and Indonesia, and according to the industrial poverty line, China’s current proportion of poverty population is the lowest. Statistics show that China has experienced a period of human history in which poverty population decreased by a largest margin in the past 2 decades, and reversed the trend that poverty population has been increasing in the past five decades in the world history, causing the poverty population of the world to decrease for the first time. That is to say, without China’s efforts of poverty reduction, the poverty population of the world would have increased from 848 million in 1980 to 917 million in 1990. (Angang, 2-3). Ambassador Baodong stated that the Development-oriented Poverty reduction program for Rural China for the period of 2001-2010 generated grand effects in the global poverty reduction. The number of rural population in China declined to 21. 48 million and 2. 3% of national poverty incidence was accounted for the 55% of global poverty reduction in 2007 (Baodong, 1). Technological development plays a vital role in the country’s economic growth. From 1980 to 1990, China’s expenditure amounted to US $17billion for imported technology. The trend of research and development made an immense leap. As a result there has been a modest amount of growth in the country’s development however the inefficiencies posted to be the chief dilemma. At the end of 1990, statistics illustrated that 50 of Shanghai’s large and medium enterprises only reached 10 percent of international level of quality standards and 30 percent arrived at the prototype stage using the new programs. From the year 2001 – 2005, this country became a major IT nation in the world, standing third place in manufacturing setting and first rank in telecommunications. The business cycle of the Chinese economy had undergone substantial magnitude from the time when the government established in the mid1950’s centralized economic management and planning. The period from 1979-1990 was depicted with relative stability and high escalation. In 1955-1978 economic growth rates, the movement went from 5. 7 percent to 9. 3 percent in 1979 to 1993 period. Investment cycles, harvest fluctuations, political disturbances, inflation and periodic retrenchments are the major factors that affect business cycles. Downturn was evident during 1980-1981, then an upswing from 1982 – 1989 and the business cycle in 1989 was another downturn and an upturn in 1990. Imai’s stated that his conclusion on Chinese business cycle stated that cycle interacts with exogenous shocks and generates business cycles with dissimilar amplitude and duration. An investment cycle is generated by patterned reaction of central planners who adjust the level of fixed investment in response to capacity pressure, an indicator of macroeconomic tension. An instititutional prerequisite of this cycle is the weak financial accountability of state enterprises (178). Economists added that the efficiency wedge, which represents institutional change and technology advance, was the main source of economic fluctuations in 1978 2006. The amplitude of it fluctuation declined after 1992, which resulted in moderation of business cycle fluctuations. Distortions manifest themselves as taxes on investment, which represents frictions in the capital market, became another economic fluctuation source after 1992, which is different from results of business cycle accounting on US and Japan data. Results also show that government consumption and net exports played minor roles in generating business cycles (Gao). China’s world trade generated a strong impact on its growth. Imports and exports led China to be among the world’s most significant export destinations for other Asian countries. Since the year 1979, the country’s global trade gradually improved. Presently, Japan’s exports of 11 percent came from China, before it was only 2 percent during the end of 1990. The Chinese government implemented tariff reductions in order to continue its longstanding trend in world trade. During 2004, China’s tariff rates dropped from 0. 6 to 10. 4 percent. Part of the country’s trade reforms to (WTO) World Trade Organization is to lessen tariff rates and eliminate import quotas and licenses, opening sectors for foreign country involvement such as telecommunications, financial and insurance services. Complete access to foreign participants is greatly assured through automatic licensing procedures. Eradication of limitations on trading and domestic distribution for majority of goods is also part of the plan. According to WTO, China will retain import state trading for wheat, rice, corn, sugar, tobacco, cotton and chemical fertilizers, as with export trading, corn, tea, rice, coal, silk, crude and processed oils, cotton, tungsten and ammonium products are included. In addition to this, China had been permanently bestowed with the most-favored-nation (MFN) treatment by other participants of WTO. As response to this honor, some countries have abolished restrictions on China’s imports. The contributing factor for the possible boost in China’s trade is when quota restrictions are lifted. China’s membership to World Trade Organization made enormous effect on some of the trends in relation to the role of China in international trade. Examples comprise of its magnetism to foreign investors and developing role in global export base. This is evident in IMF statistics that showed its market share in Japan, United States and Europe, from the period 1980 to 1990, an overall total of 10. 3 percent, and end of 2003, a whopping 37 percent (Source: IMF, Direction of Trade Statistics). â€Å"Just as water always flows to the lowest point, China is bound to be the first option for foreign capital investment (â€Å"Chinas Cheap† A1). China’s labor force is considered cheap and also of good quality. It is estimated that 100 million of employees in rural areas are likely to be waiting to be changed to urban workers. The Labor Force Participation Rate (LFPR) is a significant gauge to quantify the labor supply of PR China. In the period of 1980-1990, the LFPR in China is higher among other countries. The most likely basis is moderately low income level. There is high participation in the labor force among women because one wage earner is inadequate to support a family. In the last 5 years (2002-2007), women’s participation in the labor force exceedingly increased according to APEC statistics. Presently, the government was executing the guidelines which were implemented during 1997, which was the division of labor market between urban and rural areas. The labor market is exclusively for high school graduates or those with lower educational background. This probable outcome of this situation is the layoffs in urban places and labor surplus in rural areas. In the coming years, it has been forecasted that China might face a nationwide labor shortage. The country is fast approaching the â€Å"Lewisian turning point†. It is a theory by Arthur Lewis stating the turning point from surplus labor to labor scarcity. In the year 1980, State Council issued a decree prohibiting the use of foreign exchange for making payments in China. Foreign exchange rates or Waihui, equal in value to the Renminbi at effective rate, were put into circulation for use by nonresidents only. It could be use for transportation fares, hotel bills and purchases at Friendship stores. Then in 1981, the foreign trade rate was since fixed at 2. 80 from 1. 750. In 1985, the internal settlement rate was abolished and all trade was governed by the Effective Rate. A foreign exchange retention quota also exists for a portion of export proceeds. Authorization was granted for Chinese residents to hold foreign exchange and open foreign exchange accounts and to deposit and withdraw funds in foreign exchange. In the year 1986, The trade-weighted basket of currencies was abandoned and the Effective Rate was placed on a controlled float based on developments in the balance of payments and in costs and exchange rates of Chinas major competitors. Shanghai International Trust and Investment Corporation was authorized to handle exchange business. In 1988, early this year, all domestic entities which are allowed to retain foreign exchange earnings were granted permission to trade in the adjustment centers, and by October 1988, 80 adjustment centers were established. Initially, a relatively small volume of transactions took place in these markets, but the volume has increased substantially since access to the centers was expanded. The Foreign Exchange Swap Rate was 6. 60 from 3. 72. In 1989, regulations were issued governing the use of foreign exchange obtained in foreign exchange adjustment centers. Imports of inputs for the agricultural sector, textile, and for technologically advance and light industries were given priority. Purchases of foreign exchange for a wide range of consumer products were prohibited. Such corporations are permitted to sell in China for foreign exchange provided that the sales involve purchases under the Governments annual import plan, sales in Special Economic Zones and other promotional areas, and sales of import substitutes. The Foreign Exchange Swap Rate was 5. 40 from 3. 72. By the end of 1990, The Foreign Exchange Swap Rate was 5. 70 from 5. 22. (Ka Fu) Presently, Premier Jiabao stated in the Annual Meetings of the Board of Governors of the African Development Bank Group in Shanghai that the government continues to push the Renminbi exchange rate reform in order to confer larger range to the role of the market. The reform permits citizens to purchase more foreign currencies and commercial banks. Financial market development has been highlighted with China’s monetary reforms. The Peoples Bank of China (PBC) has made great strides in modernizing its monetary policy frameworks but their effectiveness will diminish as the sophistication of the economy increases. Empirical evidence supports maintaining a reference to money in Chinas monetary strategy and enhancing the role of interest rates in its conduct (Maino, 44). The most suitable monetary strategy for China would be an eclectic monetary policy framework, whereby the growth in money supply and bank credit extension are used as intermediate guidelines for the determination of short-term interest rates. In addition, in deciding on the most appropriate monetary policy stance, developments in a number of other variables need to be taken into consideration, because the monetary aggregates are loosing some of their usefulness as indicators of future inflation due to structural changes in the economy (Maino, 40). The IMF also points out that Chinese monetary policy could improve noticeably if the central bank were granted more discretionary power to set interest rates. In the last two years, increases in the trade surplus and significant inflows of foreign capital have led to a large accumulation of international reserves, which has further complicated monetary policy handling. In this respect, the IMF has welcomed the changes introduced into the Chinese exchange rate system as a significant step towards making this system more flexible. Although it is difficult to define an equilibrium exchange rate, and not just revaluation, must be adopted if china is to increase the independence of its monetary policy and shield its economy against external shocks (Ruete, 8). Works Cited Angang, Hu. China’s economic growth and poverty reduction (1978-2002). 2 June 2003. IMF. 20 April 2008 http://www. imf. org/external/np/apd/seminars/2003/newdelhi/angang. pdf. Baodong, Li. Remarks by Ambassador LI Baodong At Ministerial Roundtable Breakfast of Economic and Social Council On Food, Nutrition and Agriculture: Working Together to End Hunger. 12 July 2007. China-UN. 22 April 2008 http://www. china-un. ch/eng/xwdt/t339666. htm Chinas Cheap, High-quality Labor Lures Foreign Investment. Editorial. Xinhua News Agency 21 December 2002, A1. Gao, Xu. Business Cycle Accoounting for the Chinese Economy. N. p. : n. p, n. d. http://www. wdi. umich. edu/files/Publications/WorkingPapers/wp795. pdf Imai, Hiroyuki, Explaining Chinas Business Cycles. 6 June 1996. IDE. 22 April 2008 http://www. ide. go. jp/English/Publish/De/pdf/96_02_03. pdf. Ka Fu, Wong. International Economics. 1 January 2007. 23 April 2008. http://intl. econ. cuhk. edu. hk/exchange_rate_regime/index. php? cid=8. Manio, Rodolfo. China: Strengthening Monetary Policy Implementation. 1 January 2007. Social Science Research Network. 23 April 2008 http://papers. ssrn. com/sol3/papers. cfm? abstract_id=959761. Ruete, Javier. The Development of Chinas Export Performance. 7 March 2006. Central Reserve Bank of Peru. 23 April 2008 http://www. bcrp. gob. pe/bcr/dmdocuments/Ingles/Comunicaciones/Press_200602. pdf.

Business Plan For The Chocolate Shop Marketing Essay

Business Plan For The Chocolate Shop Marketing Essay The confectionery industry in Pakistan is one that is growing and is promising for our business. This is due to the cultural changes and in the liking of our target market. Our marketing strategies include differentiation, creating customer awareness, increasing customer confidence and finally market development. These strategies aim to satisfy our marketing objectives and goals. Apart from these we have set objectives and strategies on a functional level for marketing research, customer services and the advertisement and promotion of our business. Our total investment is of Rs. 4590,000 out of which Rs. 1500,000 is a loan taken from the bank. The interest rate on this loan is 10%, and we plan to pay it off in a time period of ten years. The major problem involved in our business is that of an increase in interest rates and problems that we will have to face in regards with the location of the shop. Our main risk is associated with the competitors. Business Description Brand Name The chocolate shop Tagline of the company One Taste Is All It Takes General Description of the business Our business is that of confectionery chocolate which is customized. We will be opening one outlet by the name of the chocolate shop in either Y-Block in defence or Xinhua Mall. The chocolate will be processed after an order is placed according to the preference of the consumer. Different sizes, shapes, packaging and flavors will be available. The consumer will be able to choose their own blend of all of these. Product and services Semi sweet chocolate chips Milk chocolate chips Classic white chips Semi sweet chocolate baking bars Unsweetened chocolate baking bar Bittersweet chocolate baking bar Milk chocolate baking bar White chocolate baking bar Milk chocolate almond bars Crispy chocolate bars Blueberry and almond chocolate bars We also provide chocolates for special occasions in special packaging Boxed chocolates Holiday specials Corporate gifts Custom molding Fund raising Uniqueness of the product We are one of the very few chocolate manufacturers that make chocolate starting from the cocoa bean through to finished products. Throughout the process, we take special steps to ensure that our premium chocolate delivers our signature intense, smooth-melting chocolate taste. The uniqueness of our product lies in the fact that we make custom made chocolate with variations to the size, packaging and flavor according to the preference of the consumers Intensive quality assurance in the selection of cocoa beans means that we accept only the highest-quality beans. We reject as many as 40% of the beans that are offered to us. Beans that are not selected are sold to other manufacturers. In all of our chocolate product, we use a proprietary blend of cocoa beans that is refined to provide the companys distinct and intense chocolate taste. We roast the cocoa beans in-house to ensure the companys signature flavor profile is consistently maintained in all chocolate products.Because the nibs are fairly uniform in size, we have more control over the temperature and time, so we can get a more specific flavor. Other companies roast their beans before removing the shell, which requires over-roasting the outside portion of the bean in order to roast the inside. This could impart a burned flavor to their chocolate. Finally, we use an intensive refining process to ensure that its chocolate truly melts in your mouth! We have no grainy feel because we refine most of our chocolate flakes until they are 19 microns (human hair is 100 microns in diameter). Other mass market chocolates are refined to only 40 microns. Overview of the confectionery industry Chocolate and Confectionery industry has shown a satisfactory progress in recent years. The industry flourished under tariff protection and it has not only saved foreign exchange which would otherwise have been spent on the imports of such products but has also started earning the much needed exchange to the country. The vast Middle East market is open for the sale of chocolate and confectionery and Pakistan has all the potentials to capture this market. Export of chocolate products included sugar preparations, which increased from Rs.23.173 million in 1985-86 to 295.136 million in 1992-93. The sugar preparations included Pakistani jelly and jams exported in packed form. However, presently more than ten years later the trends have changed to quite an extent. Due to changes in culture and the people being exposed to media, there have been an inclination towards western confectionery which has increased by demand for chocolate confectionery. The Pakistan confectionery product category reached a value of $32.6 million in 2001. It is by far the smallest confectionery market in the Asia-Pacific region. Pakistan contributes less than one percent of the Asia-Pacific confectionery revenue. No single product category dominates the market. Standard grocers are the leading distribution channel, holding one third of the confectionery market revenue. Traditional grocers are the only other channel to capture a double-digit share. The remainder of the market displays a high degree of fragmentation Use this report to understand the key trends and issues in confectionery and assess the competitive landscape of the Pakistani confectionery industry. Goals and potential of the business Goals of the company include the following: To give our customers the best quality customized chocolate To gain the highest market share in the industry To gain consumer confidence and loyalty The company has high growth potential as the industry it is operating in is one which is growing and the willingness and buying power of the consumers is growing as well which will create high demand for our company. Moreover, corporations such as Multinational companies, banks e.t.c are now commonly using confectionery chocolates as gifts to their business clients as well consumers, this will also be of advantage to our organization and help it to grow. Marketing Research analysis Industry Analysis The industry that The Chocolate shop operates in is that of the confectionery industry which is a growing and an immensely popular industry having organizations such as Nirala, Gourmet and Patchi operating under it. The industry relies mainly on the changing lifestyle patterns and the population growth of the target group. Opportunity The opportunity of setting up a confectionery can be linked with the eating habits and demand of the people. People in Pakistan enjoy the traditional confectioneries very well and their demand is still extremely high on occasions such as weddings, birthdays, Eid and also in corporate clients, however recently there has been a cultural change in Pakistan. Now people are turning towards new lines and varieties of confectionery items. This major change can be seen in corporations mostly and now for weddings as well. Increase number of Outlets A rapid increase can be seen in confectionery outlets recently, this is a reflection of the increase in demand. The increase in the number of outlets have made such products more accessible to the consumers. Many organizations have opened small outlets near offices or other locations chosen specifically to maximize convenience for consumers. Consumer demand In Pakistan confectioneries have always been used as gifts on weddings and other occasions however now there is a higher demand for chocolate confectioneries on not only weddings but also on Eid and birthdays. There is a high and an increasing corporate demand for such confectionery items as now people want to deviate from the traditional sweets. Competitor Analysis Our chocolate shop will be competing with all confectionery shops in Lahore, however their main competitor will be Patchi as this organizations main product is chocolate as well. Other competitors are Nirala and Gourmet because they also serve confectionery items on weddings, birthdays, Eid e.t.c. Nirala has been in the industry the longest and many people of Lahore have a loyalty towards this brand. It has been used on weddings and other occasions. One of their strengths lie in their variety of packaging according to the occasion they cater to. Their packaging is quite diverse and comes in all sorts of sizes. They now also offer a sitting place for their consumer which has increased their demand a great deal because this is one of the feature which is not offered by any of their competitors. Gourmet on the other hand has also had an increase in consumer demand recently because of an increase in their product quality. There is a high demand for gourmet products on weddings, however it is not favorable amongst corporate clients. Patchi is the direct competitor of our business. They serve chocolate confectionery in different sizes and packaging. Their major clients are corporate clients and they serve to the upper class of the country due to their pricing. Our business will have a competitive advantage as it will be serving custom made chocolate, sized according to the consumers preference and it is also offering a sitting place in the shop. Moreover, we will also be serving for weddings, birthdays e.t.c. Target Market The population of Lahore is approximately 7,000,000 people. Our major target market will be the corporate clients of Lahore mainly and other adjacent cities as well. The trends in the corporations of Pakistan are now changing, corporations often present gifts in the form of chocolates to their consumer as well as their business clients. This trend is on an increase in the country. We will also cater for weddings in large packaging and other occasions such as birthdays and Eid. However this will be targeted towards the upper and the upper middle class of the country. Our target market will also largely include walk in clients who will purchase chocolate in small quantities as compared to the corporate clients or those catered for weddings. There is no age limit to the target market as Chocolate is a certain product that is liked by everyone. Market Size and trends The market size of our target market includes all of the upper class of Lahore and adjacent cities, all of the upper middle class and any person who could be a walk in customer. Apart from this we are serving to corporate clients which includes fourteen banks and other multinational organizations as well as the local ones. Marketing Plan An in depth analysis of marketing research will be conducted prior to making the marketing plan. Marketing of The chocolate shop will play a key role in the mobilization of targeted number of customers. Major marketing options include, site advertisement, cable ads and handbills among other traditional marketing channels. Before launch of the project, it is recommended that a research for understanding the dynamics of the targeted market should also be carried out, to design the products as well as the promotional strategy. The basic principle of marketing is to sell the right product, at the right price and promote it in the right place to the right people. However, there are other socioeconomic factors, which also affect the production, selling and consumption of foods. The success of marketing is often determined by the extent to which various socio-economic factors are considered. Business Situation As it has already been discussed above, the market for confectionery items are in a growing trend because of the increase in the demand and cultural changes in the country. The scope of the market is great as at the moment the only direct competition our business will be facing is Patchi and there is a high demand for confectionery chocolates within the corporate world. The distribution of our chocolate will be done through our own retail outlet, we will be implementing the strategy of forward integration. Our product will not be distributed to other retail outlets. All orders will also be places at our own shop. Our consumers would want value for their product and they will be given high quality products. The customers will be ranging from all age groups however we will be catering mainly for the upper class and the upper middle class, however a major target market of the business will be of walk in clients. Identification of problems and opportunities The major opportunity of our business is that it is operating in an industry which is growing and has high demand. Another opportunity is of the growing inclination of corporations towards the use of confectionery chocolates for purposes of gifts e.t.c. Our business will also be using state of the art technology for the chocolate making which will be made fresh after the order is places by the customer. The future of the confectionery industry also proposes many opportunities for our business, as the industry is offering a promising growth. This has occurred as a result of cultural changes and the increase in consumer income and spending power. Our business will be serving the needs of the consumers by making available to them customized chocolate which was initially not being catered to them by any source. However our organization will also be facing certain problems. The first issue to face is that of the entry of timing into the market. As the main decisive factors in this case are events and season, we will have to match the timings with these two limitations. For example weddings generally occur around winters in Lahore, therefore entering the market well before that would be a good idea. Another issue that would be faced is of the sustainability of the organization, it is not only important to be successful over a certain time period but the most difficult part is to be able to sustain this success and to be able to meet the changing requirements of the consumers. Another problem would be to see whether the location we will opening our shop at is accessible to a majority of our clients and can attract a large number of walk in customers. Marketing objectives This stage in marketing planning is indeed the key to the whole marketing process. The marketing objectives state just where the company intends to be; at some specific time in the future. To be most effective, objectives should be capable of measurement and therefore quantifiable. This measurement may be in terms of sales volume, money value, market share, percentage penetration of distribution outlets and so on. Some of the objectives of our business are as stated below: To increase sales by at least 10% each month To achieve a market share of 10% within the first 18months of operation to achieve atleast 75% customer awareness of our product in our target market within the first 6 months of operation To gain customer confidence within the first 12 months Marketing Strategies The marketing strategies are formulated in such a manner that they will assist in attaining the above marketing objectives Differentiation: this is the primary marketing strategy of our business. We will be offering a unique product that is not available in the market before. This strategy will be useful in increasing our sales objective and the market share objective Increasing awareness about our product is another strategy which will be used to achieve all three marketing objectives of our company. This will be done through effective marketing and promotional activities Customer confidence will be gained by taking in complaints from customers and handling them as the customers desire and also by providing customers with high quality Market development is another strategy which our business plans to follow after a certain time period of our establishment. We will be exploring new untapped markets in terms of geographical area to increase sales and market share. Departmental / Functional objectives Our functional objectives will be divided into the advertising and promotional objectives, customer service and market research objectives. Advertising and promotional objectives: build awareness to reach the customers and tell the market as to what we are what we offer Create interest in our consumers in order to make them visit the shop at least or to make a purchase to stimulate demand and increase the purchasing activity. Reminder advertising which will be used to maintain the interest and awareness of the consumers. Customer service objectives The main objective for customer services is to make sure that the complaints of the customers are heard and are taken care off. Market research To keep the business up to date with the changing demands of the consumers To keep the business up to date with the entry of new competitors To keep the business up to date with the strategies of the existing competitors To keep the business up to date with the technological innovations of the industry. Departmental / Functional strategies These strategies will be implemented in order to meet the above objectives. the advertisement and promotional objectives would be achieved through strategies involving effective advertisements through print and television mediums as well as bill boards. the reminder advertisement objective will be achieved by continuous effective advertisement, however it will not be on such a large scale as it will be at the time of launch. customer service objectives would be reached by having a 24 hour help line available to the customer for complaints and other queries. Market surveys will be conducted time to time in order to achieve the marketing research objectives Control of the Marketing plan In order to keep an effective control on the marketing plan periodic reviews will be held. On quarterly basis a review of the marketing plan will be held to see whether the objectives are being met and if the strategies are efficient or not. Feedback will be taken from not only consumers but also from the employees of the organization on the operations of the company and on the implementation of the marketing plan. The marketing plan will then be reviewed accordingly and changed if needed. Operations Organizational Plan Building a strong, lasting organization requires careful planning and strategy, in which organizational plan plays a vital role. Organization plan discuses the form of ownership and advantages and disadvantages of the new venture. Its further includes authority of principles and rules and responsibilities of all the major position of the business. In the organizational plan, developing the management team and form of organization are the foremost steps. In this the importance of employees, their loyalty and commitment to the organization and type of ownership is of greater concern to the potential investors as well as for the entrepreneur. Form of ownership There are three types of major legal forms of businesses or ownership. The three basic types are: Proprietorship Partnership Corporation These three basic types of businesses are compared with regard to ownership, liability, start-up costs, continuity, and transferability of interest, capital requirement, and management control, distribution of profits losses and attractiveness for raising capital. The new venture The Chocolate Shop is proprietor owned business. The owner is the individual who starts the venture and has full responsibility for all the operations. The owner may hire some personnel such as managers, advisors, and accountant etc, to assist in day to day working of the business. Liability of owners The proprietor is liable for all aspects of the business, which means no distinction is made between the business entity and the owner. This is known as unlimited liability in which owner has to satisfy any outstanding debts of the business, creditors may seize any assets the owner has outside the business. Cost of starting a business The financial cost of the business is mentioned in the financial plan. But here, the cost of starting the business refers to the legal fees and expenses incurred for the formation of the venture. In our new form of business which is based on the sole proprietorship, there are not many legal expenses involved compared to the other forms of ownership. The only legal fees required is the fees for trade name, which makes the cost of starting the business very low. Continuity of business Continuity of the business is one of the most important issues for the investors as well as for the suppliers and customers because investors are concerned about the investment, and suppliers and customers prefer to have long relationship with the business they are interacting with. The chocolate shop is a proprietorship business, in which continuity of the business depends upon the owner will to continue, and or otherwise lasts till the death of the owner. Where as, typically in Pakistan, business is continued by the successor of the owner. Transferability of interest In a sole proprietorship, the owner is completely free in the transferability of interest. The owner can sell any part or the business as pleased or when a good value is given. The chocolate shop`s owner has the same advantage of transferability of the interest being a sole proprietor. Capital requirement The need for capital during the early stages of the new venture can become one of the most critical factors in keeping a new venture alive. For a proprietor, any new capital can come only from loans by any number of sources or by additional personal contribution by the entrepreneur. In borrowing money from the bank the entrepreneur may need collateral to support the loan. Any borrowings from outside investors may require giving up some of the equity in the proprietorship. Which ever the source for fund is the owner or the entrepenure is liable to make the payments and a failure to do so can result in foreclosure or liquidation. However, even with these risks the proprietorship is not likely to need large funds of money to do business. The chocolate shop, has acquired Rs.1.5 million from the bank and the rest of Rs.3 million is invested by the proprietor himself/herself. To acquire the loan from the bank, the owner has to keep his/her house as collateral. Management Control In any new venture, the entrepreneur will want to retain as much control as possible over the business. In proprietorship, the entrepreneur has the most control and flexibility in making business decisions. Since the entrepreneur is the single owner of the venture, he or she will be responsible for and have sole authority over all business solutions. Mean there is a centralized chain of command in the shop. Distribution of profits and losses The chocolate factory is single owner or sole proprietor based business, therefore all the profits and losses are received by the owner. Attractiveness of raising capital The ability of proprietor to raise capital depends on the success of the business and the personal capability of the entrepreneur. Primarily because of the problem of personal liability raising capital is a difficult task. Tax attributes for proprietorship In proprietorship taxable year is usually a calendar year and taxes are deductible on the income generated by the proprietor business. Organization cost is non-amortizable and capital gains are taxed at individual level. A deduction is allowed for long-term capital gains and capital losses are carried forward indefinitely. For the initial organization or commencement of new business, results in no additional taxes for individual. Tax issues for proprietorship The proprietor has some tax advantages that there is no double tax when profits are distributed to the owner and that there is any capital stock tax or penalty for retained earnings in the business. Authority of principle The main authority of principle in the chocolate shop is with the C.E.O that is chief executive officer, who is responsible for the entire major decision making. Main functions of the C.E.O are: Reviewing operating and capital budgets Developing longer-term strategic plan for growth and expansion Supporting day to day activity Resolving conflicts Organogram C.E.O Manager Production Department Sales Department Cashier/Accountant Salesman Salesman Store Keeper Chocolate Maker Chocolate Maker Roles And Responsibilities Of Management C.E.O:This diagram shows that at the top of the hierarchy there is a C.E.O who is the sole proprietor of the business .He the is the only owner of the business his job basically would be to have an overall look at functions of the business .It is a centralize chain of command. As the sole owner of the business will be taking all the major decisions at the top. All the employees of the business would come under his command. Manager: As the name suggests the manager is responsible for managing the resources in the best possible way and give the business its best possible outcomes. Manager takes into account the performance of the sales and production department. The manager is answerable to the CEO regarding the feat of the two departments. The manager also assesses the performance of the workers in the lower levels of hierarchy. Sales Department: Cashier/accountant: The cashier looks after the cash flows (both inflows and outflows) of the business. The person also maintains the accounts of the company, recording its sales, revenue, expenses etc of particular periods. A specialist is required for the job because of the importance and complexity of the task. Salesperson: The primary function of this salesperson is to generate and close leads, educate prospects, fill needs and satisfy wants of consumers appropriately, and therefore turn prospective customers into actual ones. The successful questioning to understand a customers goal, the further creation of a valuable solution by communicating the necessary information that encourages a buyer to achieve his goal at an economic cost is the responsibility of the sales person. Production Department Store keeper: This is a job in which the concerned person has to keep all the records of the inventory and the raw material. He has keep track of every thing which comes and goes from the store. He will report directly to the manager of the daily flows. He will recommend how much and when the raw material is need. Chocolate Maker: This person will handle all the chocolate making process. He will handle all the machinery and the chocolate making process. He is basically a trained professional an artist in his field . He will design and make the chocolate according to the taste of the customer. Financial Plan Total Investment Break down of Initial Investment (Rs. per month) Rent 60,000 x 6 = 360,000 Salaries 80,000 Raw material 300,000 Packaging 150,000 Furniture 600,000 Transportation 600,000 Interior 1500,000 Machinery 1000,000 Rent will be paid six months in advance, totaling Rs. 1200,000. Salaries are a total of Rs. 80,000. Rs. 20, 000 of these would be paid to a manager, Rs. 15000 each to the employees hired for the making of the chocolate and Rs. 5000 each to three other employees who would be taking orders and serving. Products would be sold on a price of Rs. 200 per 100gm of Chocolate. Paid in cash 3090000 Loan from bank 1500,000 Total 4590,000 Income statement Advertisements Advertisements in the income statement are the highest in the first month because that is the starting month so investment in advertisement needs to be higher. It reduces in the summer and increase again October onwards. Depreciation Depreciation is calculated on furniture as 5000, it has zero salvage value and the useful life is 10 years. Machinery has a salvage value of 350,000 and a useful life of 10 years hence the depreciation is Rs. 7083.3. Interest expense The interest rate on the loan is 10% and the loan is to be given back in a period of 10 years and is paid monthly. Jan Feb March Apr May June Sales revenue 1400000 1800000 1600000 1600000 1600000 1600000 CGS 630000 810000 720000 720000 720000 720000 gross profit 770000 990000 880000 880000 880000 880000 Operating expenses salaries 80,000 80,000 80,000 80,000 80,000 80,000 Utility bills 100,000 100,000 100,000 100,000 100,000 100,000 Maintenance 10,000 10,000 10,000 10,000 10,000 10,000 Misc expenses 5,000 5,000 5,000 5,000 5,000 5,000 Advertisement 150,000 50,000 50,000 50,000 50,000 50,000 Depreciation on furniture 5,000 5,000 5,000 5,000 5,000 5,000 depreciation on machinery 7,083 7,083 7,083 7,083 7,083 7,083 interest payments 20,343 20,343 20,343 20,343 20,343 20,343 rent 360,000 transportation 615,000 15,000 15,000 15,000 15,000 15,000 raw material 300,000 300,000 300,000 300,000 300,000 300,000 packaging 150,000 150,000 150,000 150,000 150,000 150,000 total operating expenses 1,802,426 742,426 742,426 742,426 742,426 742,426 Profit before tax -1,032,426 247,574 137,574 137,574 137,574 137,574 Tax( 30%) -309727.9 74272.11 41272.11 41272.11 41272.11 41272.11 Net Income -722,698 173,302 96,302

Gujarat State Is Famous For Various Kind Tourisms Tourism Essay

Gujarat State Is Famous For Various Kind Tourisms Tourism Essay Gujarat is a state of India, geographically situated in the western tip of India and surrounded by Arabian Sea coastline. This is the only state that has longest coastline. Pakistan to the north-west borders, Arabian Sea to the southwest, Rajasthan state to the northeast and Madhya Pradesh state to the East. People of the state and the local language are known as Gujarati. The state has some of largest businesses of the India such as diamond, cement, denim cloth manufacturing, grassroots oil refining, agriculture etc. Worlds largest ship braking yard at Alang existed in the Gujarat near Bhavnagar district. Major cities of the state Ahmedabad, Surat, Baroda (Vadodara), Rajkot, Jamnagar, Bhavnagar are playing main roles to grow the economy rates and increasing name and fame for the various businesses in the world. Gujarat state has various factors to attract foreigner as well as national and local tourists. History tourism, Medical tourism, Business tourism, Culture tourism, Adventure tourism and many more are most attractions. Gujarat state has different mode of transportations such as buses, railway, auto and taxies, aeroplane, boat, ship. Above all transportations is easy, cheaper and faster in compare to other states of India. About the political view Gujarat is governed by Legislative Assembly of 182 members, Legislative Assembly members terms is for five years and the administrations of the state is led by the honourable Chief Minister. Main Body Gujarat have different festivals and they play an important role to call foreign tourists, major of the festivals are Diwali, Navratri, Raksha Bandhn, Janmastmi, Holi, Kite Festival and many more. Diwali is the festival of light, on that day lot of sweets are cooked and at the evening people enjoy with fireworks. Navratri is the longest festival of the India and the world as well. It is a nine nights dancing festival, it is called Dandia or Garba. On the festival of Rakshabandhan, sister tie a band on the right hand of her brother, that is a holy band, belief is like the band will defence of the brother. Janmastmi is one of the holiest festivals, because it is the birth day of lord Krishna, the most worshiped god of India. Holi is called a festival of colours, on that day people spoil one to another with different colours. Every 14th of the January is celebrated as a Kite festival, international kite flying contests is also organised in the Gujarat. Most of the contestants are foreig ners. These all festivals are big attractions for foreign tourist. Food, festivals and lifestyle are famous of Gujarat state. Local people are used to eat spicy but very tasty food. Simply thinking and high living is the basic life slogan of them; they are enthusiastic, active, and adventurous. Gujarat is having different communities, such as Hinduism, Islam, Jainism, Sikhism, etc. Different religions have different food, belief and lifestyle, tradition and god. Gujarat state is famous for various kind tourisms, such as A) Medical Tourism B) History and Heritage Tourism C) Cultural Tourism D) Business Tourism E) Recreational Tourism F) Spiritual Tourism In detail explanation A) Medical Tourism Medical tourism is a new force of the tourists, who visit abroad for their medication or medical treatment. For an example, dental treatment or surgeries are costly in the United Kingdome but it is very cheap in the India (also in Gujarat) so patient from UK travel to India for their dental medication or surgery is called medical tourism. In Gujarat there are number of hospitals with high tech equipment and numbers of medicines. There are two types of tourists leisure tourists, who travel abroad for their minor treatment that is part of their vacation and tourists travelling especially for their medical treatments. In compare to medical treatment in UK/USA/CANADA/New Zealand, cheaper medical treatment plus airfare, tourist can save excluding the visit cost and accommodation in Gujarat. B) History and Heritage Tourism Gujarat has world-class history and heritage, in previous time, Gujarat was ruled by many kings, they left something as memorable which is known as golden heritage. This historical heritage attracts not only to the national tourists but also tourists from different countries as well. Some of them are world famous tourists places such as Lothal an ancient port city of old age, existed near the river Sabarmati (Ahmedabad city). Dholavira Kutch is a small village, an archaeological site, situated in Kutch district of Gujarat which is surrounded by dessert of Kutch. This is a massive site, belongs to about 5000 years old Mohenjo-Daro Harappan Civilization. Another place is Champaner (The UNESCO -listed world heritage site) this is the one of the most remarkable archaeological site of the Gujarat with Hindu temples and step wells, existed nearby Pavagadh (about 70kms from Vadodara a metropolitan city). Rani-Ki-Vav (step well) was built in the 11th century, It was built by Queen Udyamat i as a memory of her husband King Bhimdev. It has seven galleries which are laid out in east-west direction. Steps corridors and wall-borders are carved with divine glory and deep understanding. That is established near Patan Taluka Mahesana district of Gujarat. These all sites are just examples of old age time and now they are under preservation because of famous historical tourists places. D) Business Tourism Gujarat earned name and fame in the world for its business sector. Many of them are in worlds top ten business, for example, diamond industries in the Surat city is the biggest diamond production hub of the world even though there is no any diamond mine found. Gujarat state has worlds 2nd largest grassroots refinery. Biggest cement productions plants, biggest denim production plants that is why Gujarat is known as the Manchester of the East and Denim city. One of the states of India produce and export cotton in largest amount, Gujarat is worlds 3rd largest denim producer. This state has fastest growth of economy, especially in the chemical sector; it has a complete portfolio of chemical products that includes petrochemical and downstream products, dyes and intermediates. Gujarat has also big name for the producing pharmaceuticals, this is the most developed and the same type competitive sector with about 3245 manufacturing license and 42% pharmaceutical turnover of the India and 22% of Indias export. Not only industries are increasing the economy of the Gujarat but the agriculture is supporting same type. Cotton, sugarcane, banana, onion, potatoes, groundnuts (peanuts), grains and beans are the main corps of Gujarat. There is a long queue of foreign investors to invest in the state, by that way Gujarat has been earning business tourism income, and expanding economy growth. C) Recreational Tourism Festival is the synonym of recreation, when Gujarat has numbers of festival. Fairs are organised during some festivals, and those fairs are most attraction of tourists. Many if fairs are famous in tourist list, namely Bhavnath Fair, Kavant Fair, the grant fair -Vautha, Shamlaji Fair, and Tarnetar Fair. During those fair there are various activities and competitions are organised. People get together at a place of fair and enjoy different food, shopping, rides and colours. Fairs are most famous among national and local tourists rather than foreigners. Except the fairs Gujarat state has wildlife and adventurous forests. Gujarat is 7.46% covered by forest, Gir (Junagadh District) is the most famous forest and the only home of Asiatic Lions, outside Africa this forest in Gujarat is only natural habitat of lions and hot spot of foreigner as well as national tourists. D) Spiritual Tourism Gujarat has several of devotional places which attract tourism. Most of them are Hindus holy places; they visit at least once in their lifetime. Their religious belief and devotional interest influence to the foreigners and mostly western people. It makes them to visit those holy places too. Dwarkashish temple at Dwarka, Dakor temple, Somnath, Gopnath, Ambaji, Girnar those are holy places for spiritual tourism. Conclusion Gujarat is the state of India, I can say, has numbers of tourists visit in a year. Except of the tourists places mostly the state is well known for the food, festivals, people their life style. Mainly foreign tourists influence by the state because of geographical location and having suitable atmosphere. Simple life style but high quality food influences them more to visit it often. Honesty, enthusiasm, calm and humbleness are the natural in the temperament of Gujarati people. Various type of tourism is involved in a same place that is the awesome thing in the Gujarat. This state has been changing to the infrastructure. Latest technologies and equipment keep the state update all the time. Most admiral thing is Gujarat state remain safe while facing many natural disasters. Even there is none any major damages or harm in the history of the state. Tourism is a very big developing sector of the Gujarat state. Longest coastline attracts to the foreigners, moreover cosmopolitan cities, long river banks, colourful festivals, food with novelty but unchanged culture, speedy-easy but cheapest transportation system those are all main sources for to has success and vibrant tourism spot. That is why Gujarat is called VIBRANT GUJARAT.

Crossing the Line in Faulkners Barn Burning Essay -- Barn Burning Ess

Crossing the Line in Faulkner's Barn Burning   Ã‚  Ã‚   The American author Joyce Carol Oats, in her Master Race, wrote that "our enemy is by tradition our savior" (Oats 28).   Oats recognized that we often learn more from our enemy than from ourselves.   Whether the enemy is another warring nation, a more prolific writer, or even the person next door, we often can ascertain a tremendous amount of knowledge by studying that opposite party.   In the same way, literature has always striven to provide an insight into human nature through a study of opposing forces.   Often, simply by looking at the binary operations found in any given text, the texts meanings, both hidden and apparent, can become surprising clear.   In William Faulkner's famous short story "Barn Burning," innate binary operations, especially those of the poor versus the rich and the society versus the outsider, allow the reader to gather a new and more acute understanding of the text.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The most important binary operation in Faulkner's masterpiece is the projected idea of the rich versus the stark reality of the poor.   Throughout the entire work, the scenes of the Snopes family are constantly described in detail and compared to the richness that appears abundant around them.   For example, at the very beginning of the story, the young Colonel Sartoris Snopes is described as "small and wiry like his father" wearing "patched and faded jeans" which are later described as too small (Faulkner 1555).   This poor child, with his tattered clothing, bare feet, and scared-to-the-bone look is juxtaposed against the wealth of the Justice of the Peace's borrowed courtroom--its "close-packed" shelves filled with cans of food, aromatic cheese, and "the silver curve of fish"--th... ...lty, or even the normal versus the audacious.   But, the entire story seems to be focused on two: those of the poor versus the rich and society versus the outsider.   Those two operations allow for, and even demand, a different reading of the text giving us a young Colonel striving to break out of his limitations and become the opposite of what he was.   In the end, Faulkner allows him to succeed.   After his father's death, the young man runs through the woods, forever leaving his family.   The text ends with the powerful line, "he did not look back" (Faulkner 1566). Works Cited Oats, Joyce Carol. "Master Race." The History of Dramatic Theory  Ã‚  Ã‚  Ã‚  Ã‚   and Criticism. Ed. John Dukore. New York: Harper Collins,   Ã‚   1992. Faulkner, William. "Barn Burning." The Heath Anthology of American Literature. Ed. Paul Lauter. 3th ed. Boston: Houghton Mifflin, 1998. 1554-66.

Computer Viruses :: essays research papers fc

Computer Viruses   Ã‚  Ã‚  Ã‚  Ã‚  A computer virus is an illegal and potentially damaging computer program designed to infect other software by attaching itself to any software it contacts. In many cases, virus programs are designed to damage computer systems maliciously by destroying of corrupting data. If the infected software is transferred to or accessed by another computer system, the virus spreads to the other system. Viruses have become a serious problem in recent years, and currently, thousands of known virus programs exist (Reed 85-102)b.   Ã‚  Ã‚  Ã‚  Ã‚  Three types of viruses are a boot sector virus, file virus, and Trojan horse virus. A boot sector virus infects the. When the infected boot program executes, the virus is loaded into the computer’s memory. Once the Virus is in memory, it can spread to any floppy disk inserted into the computer. A file virus inserts virus codes into program files†¦ The virus then spreads to any program that accesses the infected file. A Trogan horse virus (named after the Greek myth) hides within or is designed to look like s legitimate program.   Ã‚  Ã‚  Ã‚  Ã‚  Some viruses interrupt processing by freezing a computer system temporarily and then displaying sounds or messages. Other viruses contain time bombs or logic bombs. A time bomb is a program that performs an activity on a particular date. A logic bomb is a program that performs an activity when a certain action occurs, such as an employee being terminated. A worm, which is similar to a virus, copies itself repeatedly until no more memory of disk space remains.   Ã‚  Ã‚  Ã‚  Ã‚  To find computer viruses, anti-virus programs have been developed. Besides detecting viruses, anti-virus programs also have utilities to remove or repair infected programs and files. Some damaged files cannot be repaired and must be replaced with uninfected archive files. The table below outlines some techniques used to protect computer systems. Table Techniques for virus Protection and System Archive Using Virus Protection Software  Ã‚  Ã‚  Ã‚  Ã‚  Backing Up Your System Install virus protection software on every computer system  Ã‚  Ã‚  Ã‚  Ã‚  Develop a regular plan for copying and storing important data and program files. Before use, scan every floppy disk with a virus scan program to check for viruses.  Ã‚  Ã‚  Ã‚  Ã‚  Implement a backup plan and adhere to its guidelines.

Nando’s SWOT analysis Essay

1. SWOT analysis of Nadon a) Strength 1. Renowned Global chain with over 750 restaurants in over 40 countries 2. Nandos’ Flame Grilled Peri Peri Chicken is believed to be unique and the best in the world. Can choose spicy level. 3. Nando’s chicken are considered as healthy along with the superior taste as well 4. Franchisee model has allowed Nando’s to expand rapidly in global markets 5. Reasonable pricing for quality product b) Weakness 1. Lack of marketing activities and since that a low local recognition. Low brand visibility 2. Absolute focus on Chicken reduces the inflow of old customer. Weak R&D. 3. Parent company IRL’s financial trouble reduces the expansion plans of Nando’s across Indian Market c) Opportunity 1. Innovate with new items and market them as well along with Chicken 2. Hotel Industry is forecasted to grow in double digit figures, which presents a significant opportunity to Nandos 3. Online Market d) Threat 1. Intense competition from other international player in Singapore market. 2. Growth in number of players is more than the growth of the demand itself and it will lead to further competition and reduce overall profitability of the industry Speaking of best grilled chicken in the world, Nando’s Peri-Peri chicken must be one of the strongest competitors. After the company was founded in 1987, Nando’s has already operated 1000 outlets in 24 countries across 5 continents and contributed US$650 million of profit in 2012. With its global reputation and experience operating franchise in overseas, the company can easily copy and introduce their idea into Singapore market. To be believed the world’s best and unique grilled chicken dish, Nando’s signature dish  Peri-Peri chicken is well recognized by its special variety of chili sauce including lemon and herb, Mango and Lime, medium, hot and extra hot. All Nando’s chicken is Red Tractor assured, having met high standards of food safety, animal welfare and environmental protection. This means the chicken is not only tasty, but also safe and healthy. Not only chicken dishes are popular in Nando’s, a variety of new food will be also frequently updated with burgers, pitas, salads, wings and wraps (espetada as example). Famous â€Å"Corn on the cob† is not only naturally tasty but also satisfied with a surprised low pricing. In a nutshell, Nando’s product is considered as healthy along with the superior taste and the reasonable pricing, which usually costs S$20-30 per meal per person, makes their product very much affordable to median-low income customer who contributes to the majority of the society. Comparing the company’s scale of international network, however, the marketing activities are seemed not as strong as it should be in Singapore local market. According to a survey conducted by NUS students in 2013, the local recognition of branding of Nando’s is much lower than its general competitors including Aston Catering, TCC cafà ©. Some of the surveyor even thought Nando’s was a Mexico food brand that sells tacos. Also talking about Nando’s dishes, focusing on chicken as its only signature and lacking of innovation in production line will finally result in loss of interest from customer. Even though efforts were put in for new product development, the outcome still remains doubtful in whether new signature can reach the current level where the chicken dishes are holding. Besides making chicken as the main course in only 4 choices – quarter, half, whole chicken and chicken breast, the Research and Development Department – R&D has surprisingly not contributed any new signature dishes among so many choices that are available – beef, fish or pork. The wear R&D performance will in the end lead to out-dated production line and customer’s expectation will not be satisfied which in terms of loss in business. Nevertheless, it is never too late to change and get into the right direction. Innovation can be made among several of meat and fish; even the vegetable could be a great choice and turn into â€Å"Must-order† items for  vegi-lovers. Make sure the menu is updated with new items in certain period and elimination of unsuccessful dishes which can help in saving unnecessary costs. As a result, the company will be able to attract new customer as well as maintain return business. What’s more, with the booming of online business and more advance technology, online booking will be definitely a new opportunity to step in. According to a new study from Nielsen, a leading global provider of information and insights into what consumers watch and buy, global consumers’ intent to buy food and beverages online increased 44 percent in two years, with more than one-quarter (26%) of global respondents reporting they planned to purchase food and beverage products by way of a devic e with Internet access, such as a computer, mobile phone or tablet, in the next three to six months. Hence, Online Delivery benefits both customer’s convenient experience and the online market share as well. At the same time though, a lot of fast diners has already stepped into online markets like Pizza Hut, KFC, PastaMania and YOSHINOYA. Working years with local online food delivery platform, the competitors seem to have a stronger coverage and connectivity to the local online shoppers. Moreover, the growth in number of players in Singapore is more than the growth of the demand itself and it will lead to further competition and reduce overall profitability of the industry. In a nutshell, Nando’s has a very strong branding and product value which will lead to profits only once the correct marketing approaches is proceeded. And the company must understand the importance of keeping their product innovated in order to keep up the new as well as return business. With the booming of online business, Nando’s now is able to channel their product to customer in a more convenient and favorable way. At the same time, the company needs to realize that the competition has never been easier to outrun those existed company that provided online delivery service since years ago.

Media and Language Essay

The article discusses about how Facebook is really affecting one’s feeling of being lonely. It also states the different sources or causes for a person to be like one. Facebook is said to be an instrument to increase a person’s social life and interaction with others but for most researchers, it is also a source of loneliness. Yvette Vicker’s death was connected to a heart attack which was reportedly caused by loneliness. She called distant fans before her death rather than her family and friends. Loneliness and being alone is not the same thing. Being lonely is a psychological state while being alone is an external condition. Loneliness can be measured through the UCLA Scale. Researchers found out that as time goes by, the number of people who feel lonely increases. Professional carers is widely needed because of the alarming number of lonely beings which are then had become a public health issue. It can lead to certain illness like dementia, insomnia, obesity, hormonal imbalance, etc. Many like to be alone or independent because they get some satisfaction over that kind of system but what they don’t know is that their exposing themselves into a world of pure loneliness. Family traits are changing because of the changing world. Some engage into social networking because of the urge to belong to a social group. This may be because of a poor household interaction between families. Scanning through others posts may lead to loneliness because people would tend to realize why other people have this and that while they do not. Why people experience this and that and they do not. Facebook draws a person into a world of illusion instead of being able to realize reality. It can be helpful if one can use it as a tool to engage social gatherings or interactions and not a substitute to one. Technology may be helpful or not to improving one’s life but it is for the user to limit its usage, maybe for better or for worse. The author concluded that connection is not the same as bond. People let themselves be drawn into a connection which is not forever connected and a form of disintegration from this connection may lead to a worse scenario. So the text talks about the relation of loneliness to Facebook. I am a vivid Facebook user and yes, I felt lonely at some times. When I do not know what else to do, I try to scan through my wall and see some posts there about other people’s lives and how they feel and even what is currently happening to them. Some of those posts appeal to my senses. I feel envy of what other people have, in the material and social aspect. I am not into social interaction with those who I do not really know and from what I have observed, those people who talk to others via social networking sites are one those who are popular in reality and I also think that they are sometimes being plastic to others. Many admire their popularity and because of that, admirers always make a way to interact with them and also, the ones who are being admired are feeling good about it. That is only my opinion but I do not mind them. Also, I do not use social networking just to seek importance from other person like others do. I use it for communication and entertainment purposes only. I just want some communication with my friends and family and that is all I need to live a not so noticeable yet a full life. So I agree at some points of this article. It is the people who should control technology and not the technology who should control the person.