Royal Greenland Essay Example for Free

Royal Greenland Essay Royal Greenland is the largest producer of cold water prawns and the market leader of ever expending seafood products. The company belongs to Greenland and catches their primary raw materials and the clear ice cold water from there. The company has its modern part of hunting and fishing culture, which is always existed there and the catches are made with deep respect in Greenland nature and people. Royal Greenland’s clear aim is activities to contribute to the wellbeing Greenland community. Royal Greenland is not just a brand – it’s a promise. No matter what the challenges are, the company depends of committed staff. Royal Greenland has focus on quality and refuses to compromise. In this way Royal Greenland has been a reliable supplier and a trust world partner since 1774. Today is the company still in lead and extended itself as the most innovated and competitive player on the market. Whether if its own brand, as a supplier of private labels or via directed sells to the industry. For more than 230 years has Royal Greenland been associated with the first class seafood. The company’s future plans in investing are to have focus on improving their techniques and products to match the need of their modern consumer. Royal Greenland cooperates with private and public research institutions in order to continue developing their processing, distribution techniques and production. 2. Royal Greenland brand value Applying the Maslow hierarchy of needs, one may argue that Royal Greenland customers seek for self-esteem, recognition and status; they believe that being seen with the Royal Greenland products brand will fulfill these needs. Therefore, the value added to its customers is more intrinsic, being that is a physiological need the act of eating. Royal Greenland Royal Greenland However we may say that Royal Greenland stands in between level 1 and 2 of the Maslow Pyramid and maybe some may argue also between level 3, so that it can be also associated to a kind of luxury level of food and restaurants. Anyway is mainly a physiological need, the customers go for best in the balance of quality facing price. 3. The 4 P’s Products Seafood such as shellfish, natural fish, smoked and marinated fish, prawns. In their webpage they have a catalogue with 162 of different kind variation of the seafood that they offer. As a full-range supplier of seafood products Royal Greenland’s product assortment reflects the company’s ability to meet the need of our consumers and Royal Greenland’s ability to renew ourselves. In Royal Greenland marketing it is in matter; at their products have high quality standards. Royal Greenland is proud to present a broad range of high quality seafood products from their own fisheries and from selected suppliers around the world. They offer the â€Å"highest quality standards† in the world – their global quality team makes sure of that. If there are any complains about the products or about the services, the company takes them serious and they take professional action towards and try to avoid that happening again. Price For centuries, Royal Greenland has been associated with high quality seafood at affordable prices. The company’s product range makes it possible to prepare healthy and tasty meals for any occasion. Royal Greenland, have a price that most customers can afford. Royal Greenland gives the customers the products what they pay for. Place – They owns Production facilities in Canada, Denmark, Germany, Greenland and Poland. The customers can be sure that Royal Greenlands products get delivered o time and in a perfect condition. When dealing with perishable food products and especially frozen goods, it is extremely important to keep temperature constant during transportation and storage. In order to retain the high, natural quality of their products they are checked all the way from production, through storage to the customer by their Quality Control Team. In Denmark the company is distributing in different Danish supermarkets such as Irma and Fotex Promotion They use as promotion mainly their homepage. There the customers can find information about the company, the quality of their products, the way they prepare their products. Even though that the company don’t use any special way to promote themselves, Royal Greenland is the largest producer of cold water prawns and the market leader of ever expending seafood products. 4. Strategic Analysis For in depth analysis, to start with we need to identify the elements which affect the strategic decision; strategic position and strategic choice. The strategic position, where it argues the environmental and stakeholder’s effect on the issue, we identified two elements; economic downturn and new consumer needs. We used the Ansoff matrix to show how Royal Greenland stands concerning Markets and Products as it is shown below. Upon investigation of the company’s reports, one comprehends that both the sales growth rate and profit margin are declining. The company in its mature phase reveals that is the time to look for new segments or new markets. The time seems right for diversification by new product in new markets. 5. IMS (International Market Selection) Analyses The IMS analysis will help us to identify the right market to export. It is based on low psychic distance, low cultural distance and low geographic distance. Our assignment is about Far East countries and Polynesian Islands. We don’t have to argue why it is that, because it’s given. - In their official webpage there is a summary of companies owned or partially owned by the parent company Royal Greenland A/S. There we can see that Royal Greenland is a limited company and 100% of the stock is owned by the Greenlandic Selfrule Government is in Japan. That means that they already have knowledge with the Far East culture, and are ready to export to more Far East countries a brow. Royal Greenland is the biggest seafood company in Denmark. Royal Greenland is a large and complex organization with subsidiaries in a number of countries around the world. Royal Greenland A/S had an annual turnover in 2010/2011 of 4,7 billion DKK and more than 1,800 employees around the world. It has advantage of food  fresh  and  production technology. Royal Greenland has expanded to  many countries and regions on sale. The global economic is downturn, we should keep currently market share and develop the new market. Royal Greenland owns several production facilities located in the immediate vicinity of fisheries and their â€Å"key markets† Greenland, Canada, Denmark, Poland, Germany. We will go along 4 steps. We will describe more detail the general and specific criteria that is mention above. Step 1: In step one, we have the micro level. – Here we make decision which market the product is going to enter. This is about external factors such as PESTEL (politics economic, social, technology, environment and legal). In the first step we analysis IMS (International market selection). We chose New Zealand, China and Philippines. We will mainly look at those three countries political and economic factors. After those first reflections, we can figure out where we want to start. We will reduce from three, to two countries. Then we will make a Pest Analysis and compare them. Criteria – size and economy. Step 2: In step two, we have MECO. We will do our product analysis and market analysis. We will find information about the competitors, and compare our products to the competitors. We will do a competitive analysis. Step 3: Internal analysis. All the internal tickets: are proactive or reactive. Step 4: In step four we actually do segmentation in regards to customers. Demographics – lifestyle, age, gender, buyer behavior, income. New Zealand PESTEL Analysis Political and Environmental Factors: Elizabeth 11 queen of New Zealand has no real political influence and her position is essentially symbolic. Political power is held by the democratically elected Parliament of New Zealand under leadership of Prime Minister, who is the head of government. New Zeland has ranked fifth in the world for political stability in the IMD world competitiveness yearbook 2009. In New Zealand electronics are held every three years so the government has to at time make some compromises with economic growth in order to pursue its political motives. While it may have been acceptable in the past for businesses to pursue profits single minden with a little or no consideration for the wider social and environmental impact of their activities, this is not the case anymore today. The consumer movement and the environmental lobby are now firmly established as vigilant and powerful watchdogs, and have successfully brought changes in business practice and in how businesses must operate. In New Zealand the government announced significant changes to business taxation and the business environment to help develop a more innovative and dynamic economy better able to compete in the global marketplace. Economic Analysis: The Economy of New Zealand is a market economy which is greatly dependent on international trade, mainly with Australia, the European Union, the United States, China and Japan. It has only small manufacturing ad high-tech sectors, being strongly focused on tourism and primary industries like agriculture (though both sectors are highly profitable). Economic tree – market reforms of the last decades have removed many barriers to foreign investment, and the World Bank in 2005 praised New Zealand as being the most business – friendly country in the world, before Singapore. Social Factors: The first release of data from the 2010 New Zealand General Social Survey showed that: New Zealanders have relatively high levels of overall life satisfaction. In the survey, 87 percent of the population reported they were ‘satisfied’ or ‘very satisfied’ with their lives overall. However, satisfaction with life varied across different groups within the population, in particular when looking at people’s labour force status, stage in life, household income, and the type of family they live in. Technological Factors: As a Western country, New Zealand has a proactive, creative and skilled labor. They have the worlds leading educational institutions; a highly educated population with graduate level is increasing. English is the main language of New Zealand. New Zealanders also have excellent quality of soft skills, professional ethics and the spirit of daring to do famous. Technology includes: * processes/systems (operational) * machinery * intellectual property * IT systems. The technology or business skills must be introduced into New Zealand as a result of the investment they must not already be in New Zealand. PEST analysis for China Political Analysis: China is communist country but it is transforming into democratic form of government. The Chinese government has, in the past, strongly controlled such things as prices, markets, products, foreign assets, and personal assets. However, during the past decade, the Chinese government has chosen to open their markets to world investors and to create laws and regulations more in line with the World Trade Center guidelines. This change in philosophy has encouraged foreign investment in China. However, regardless of the recent move towards an open market, the Chinese socialist political environment should remain a key risk factor in any potential expansion. There is only one party in china which is communist party of china. As there is only one party ruling the country so there is stability in the country which is very necessary for business activities. The stability in the country attracts foreign investments in the country. The government also provides different incentives and securities to the new businesses. For example government can declare certain area tax free and thus attracting new investors in the country. The laws are a bit complex for the new investors. But if the new investment Is approved then it will be a successful business. Economic Analysis: Chinas economy is huge and expanding rapidly. In the last 30 years, the rate of Chinese economic growth has been almost miraculous, averaging 8 percent growth in Gross Domestic Product (GDP) per annum. The economy has grown more than 10 times during that period, with Chinese GDP reaching 3. 42 trillion US dollars in 2007. China already has the biggest economy after the United States and most analysts predict China will become the largest economy in the world this century. China is a very good market for the investors to invest and earn profits. Both the industry and agriculture sector provides opportunities to the investors to invest. Inflation rate (consumer prices): The inflation rate in china is 5%. The inflation is very much low and it is in single figure. The prices of commodities are low in china. And this figure is also a controlled one. Central bank discount rate: 2. 79% (December 2009) This is a very good sign for the investors as the financing would be easy and funds can be generated if needed. As the rate is very lower so the expected inflation rate is also low which means that more employment. Social Factors: Chinas spectacular economic growth-averaging 8% or more annually over the past two decades-has produced an impressive increase in the standard of living for hundreds of millions of Chinese citizens. At the same time, this economic development has had severe ramifications for the natural environment. There has been a dramatic increase in the demand for natural resources of all kinds, including water, land and energy. The population growth of china is high and government is taking steps to control this growth of the population. The population growth rate of the country is 0. 94%. The 72. 1% of the population is 15-64 years which is the main target population for the businesses. Technological Factors: The history of science and technology in China is both long and rich with many contributions to science and technology. THE end of cheap China is at hand. Blue-collar labour costs in Guangdong and other coastal hubs have been rising at double-digit rates for a decade. Workers in the hinter land, too, are demanding—and receiving—huge pay increases. China is no longer a place where manufacturers can go to find ultra-cheap hands. Contrary to conventional wisdom, it will not mean that companies close their Chinese factories and stampede to somewhere poorer. China is still a terrific place to make things. Labour may be cheaper elsewhere, but it is only one cost among several. Unlike its lower-paying rivals, China has reasonable infrastructure, sophisticated supply chains and the advantage of scale. When demand surges for a particular product, the biggest firms in China can add thousands of extra workers to a production line in a matter of hours. Environmental Factors: Chinas development and environment practices have made the country one of the worlds leading contributors to regional and global environmental problems, including acid rain, ozone depletion, global climate change, and biodiversity loss. Environmental degradation and pollution in China also pose challenges well beyond those to the natural environment. The ramifications for the social and economic welfare of the Chinese people are substantial. Public health problems, mass migration, forced resettlement, and social unrest are all the consequence of a failure to integrate environmental considerations into development efforts effectively. Sacrificing environmental needs, such as trees, for economic gain. PESTE analysis Philippines Political analysis The Philippines’ diverse population, which speaks more than 80 languages and dialects, is spread over 7,000 islands in the Western Pacific Ocean. The country returned to democracy in 1986 after two decades of autocratic rule. President Benigno Aquino III took office in 2010 with a mandate to address pervasive government corruption. Economic analysis Despite the challenging global economic environment, the Philippine economy has been on a steady path of economic expansion. The government has pursued a series of legislative reforms to enhance the entrepreneurial environment and develop a stronger private sector to generate broader-based job growth. Overall progress has been gradual, but regulatory efficiency has been notably enhanced. The economy has expanded at an average annual rate of close to 5 percent over the past five years. The economy of the Philippines is hampered by huge foreign debt, a low savings rate, inefficient tax collection, inadequate infrastructure , especially outside major cities, and poor agricultural performance. The Philippine economy is vulnerable to oil-price increases, interest-rate shifts by the U. S. Federal Reserve, and the performance of international stock exchanges. Social Factors: Social factors that have a negative impact on the economy include a high crime rate, especially kidnappings and rape, pockets of Communist rebels in rural areas, threats from Muslim separatist movements, high rates of poverty and unemployment, and the governments inability to begin its land-distribution program. Environmental factors also damage economic development, including frequent typhoons and drought. Worker productivity is adversely affected by illnesses brought on by air and water pollution. In metropolitan Manila alone, the effect of pollution on health and labor productivity has been estimated to be equal to a loss of about 1 percent of gross national product annually. Technological Factors: In todays fast paced world, the need to operate globally and without boundaries has increased the abilities and expectations for technology. Information technology, being the theme on everyones mind throughout the last decades is still reaching new levels. The new and tremendous dvancements in telecommunication technology in the new millennium were the milestone for the outsourcing of service activities that were about to penetrate the Philippines. The country has a lot of highly skilled IT people and the IT infrastructure and supports are very advanced. Therefore, the technology allows products and services to be made significantly cheaper than in domestic markets, and yet maintain at lea st the same quality. The employees are working at wages approximately 400% smaller than in Europe but the final results they deliver are hard to distinguish from the European ones. The cheap costs also give the possibility to be more flexible and take risks because there is not much to lose. It is easy foreigners who did not really have beliefs or big plans for their businesses but they thought it would be fun to run a company without seriously endangering your budget. Environment Factors: The Philippines is prone to natural disasters, particularly typhoons, floods, landslides, volcanic eruptions, earthquakes, and tsunamis, lying as it does astride the typhoon belt, in the active volcanic region known as the â€Å"Pacific Ring of Fire,† and in the geologically unstable region between the Pacific and Eurasian tectonic plates. The Philippines also suffers major human-caused environmental degradation aggravated by a high annual population growth rate, including loss of agricultural lands, deforestation, soil erosion, air and water pollution, improper disposal of solid and toxic wastes, loss of coral reefs, mismanagement and abuse of coastal resources, and overfishing. According to Greenpeace SouthEast Asia, the Philippines major historical river, the Pasig River is now biologically dead due to negligence and industrialization. Currently, the Philippines Department of Environment and Natural Resources has been busy tracking down illegal loggers and been spearheading projects to preserve the quality of many remaining rivers that are not yet polluted. Conclusion: By using the PESTEL framework we analyzed the many different factors in a firms macro environment. In some cases particular issues may fit in several categories. The PESTEL Factors in China appears in several categories, we simply make a decision of where we think it best belongs. We think that to export in China will have the greatest impact. We have made a SWOT analysis, which proves that China would be the best market to export in. 6. SWOT Analyses SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. So concerning our previous explanations and answers to themes in analyses, we came up with the following SWOT analyses: 7. Business Law Contract for the International Sales of Goods (CISG): CISG stands for contract of sale of goods, the convention applies when the buyer and seller have their place of business in different states and when the parties are from contracting states . As Royal Greenland Company is going to sell its product to China from Denmark. At the same time, China is approved to apply CISG, but Denmark is not agreed with the CISG Law. So there are two conditions: ?Royal Greenland company (seller)—the buyer in China: If the two parties did not agree about which law is to apply, then the rule of seller? s country shall apply. So in this situation, the rule of the Denmark should apply, as the Danish law mentions that the CISG takes precedence in international sales. So if the Royal Greenland Company is seller and the buyer is in China, then the CISG should be applied. ?Royal Greenland company (buyer)—the suppliers in China: It is also about the sales of goods, the rule of seller? s country shall apply, and as the China is not approved the CISG. So the law from the China shall be applied if the Royal Greenland is buyer and the supplier is from China. Performance is the fulfillment of a promise in the contract. Many issues can arise in a sales contract after the contract is made and before a partys performance is required. Sometimes performance may be made impracticable. If the goods are completely destroyed before the risk of loss has passed to the oversea buyer, and the goods have not been destroyed through the fault of either party, Royal Greenland may be excused from performing. Risk of loss is responsibility for any damage or destruction of goods; the parties may decide in the contract when the risk of loss of the goods passes from Royal Greenland to the buyer. If the goods are only partially destroyed or have deteriorated, the buyer may demand to inspect the goods and either void the contract or accept the goods with a reduction in the contract price. Royal Greenland may avoid performing only if the destroyed goods were specifically identified when the sale was made. There are two situations in which a party must make a substituted performance in case the agreed method of performance becomes impracticable. First, when the goods cannot be transported by the agreed-upon method of transportation, Royal Greenland must use available transportation that is a commercially reasonable substitute. Second, if an agreed-upon method of payment fails, the buyer must use a commercially reasonable substitute method of payment if one is available. If a party fails to substitute transportation or payment, she could be liable to the other party for losses resulting from the failure. In some cases the purpose of a sale may be frustrated by circunstances beyond the control of both buyer and seller. At times it may appear to a party that the other party will be unable to perform by the expected date. For example, assume that a party agrees to sell goods on credit. If the buyer becomes financially insolvent before the goods are delivered, the seller may demand cash before delivering the goods. If the goods are in transit, the seller may instruct the carrier to withhold delivery of the goods. A party is considered insolvent if she cannot pay debts as they come due, has ceased to pay debts, or has liabilities that exceed assets. If a party has reasonable grounds to feel insecure about the other partys ability to perform, the insecure party may demand assurances before performing. Alternatively, if the other party gives the assurance, the concerned party must follow through on his obligations. Precisely what constitutes an effective assurance is a question of fact that depends on the nature of the goods, the size of the contract, the length of time until performance, and similar considerations. In any case a concerned party may not make commercially unreasonable demands on a party prior to performance and then withhold performance if the other party does not meet the demands. Delivery We think that there are two-clause suit for the Royal Greenland Company, one is F-clause, and the other is C-clause. ?F-clauses FOB (free on board). In this situation, the Royal Greenland must load the products on board the designed by the buyer in the China. The goods are delivered when they have been handed over to the first carrier designed by the buyer. The advantage of this rule is the transportation fees and the risk is shared by the Royal Greenland and the buyer in the China. FAS (free alongside Ship). In this situation, the Royal Greenland must deliver the goods to the specified spot; the goods and risk are delivered when they are placed alongside the ship. The advantage of this is that the seller don? t need to take the goods to the board. ?C-clauses CIF (cost insurance and freight). In the situation, the seller shall pay for marine insurance and costs all the way to the place of destination, the risk passed when goods are on board the ship in the dispatch port. For example, we deliver the products (named of) to China and we pay all the insurance and transportation fee until the products arrive to the place of destination, The advantage of this rule is although the Royal Greenland pay all the transportation fees and insurance fees but they have the lowest risk, if they got any damages during the transport the insurance company will pay all the losses. Seller? obligations (CISG) and Buyer? s obligations (CISG) ?The seller must: 1, Deliver the goods 2, Handover documents 3, Transfer rights of ownership of goods to the buyer The seller must deliver the right goods quantity and quantity at right place and at the time agreed in contract. And hand over the document that is necessary. Transfer rights of ownership of goods to the buyer, such as risk. There are many conditions: some risk is passed to buyer when the goods are hand over to the first independent carrier. Some risk passes to buyer when buyer at the time of receipt of the goods at the seller? s place of business. When the risk passes to buyer, it is depend on the which kind of transportation way that the seller and buyer choose. ?The buyer shall to take delivery of goods and pay the payment that has been agreed at the agreed time and place. Buyer? s remedies in the event of the seller? s breach of contract (CISG) There are also some remedies in the event of each parties breach the contract. First of all, we list several breaches from the seller, and remedies for the breach. When the sell breach a contract in case: 1. Delay 2. Defect 3. Defective title. The buyer can choose to: 1. Affirm 2. Cancel 3. And claim damages if a loss has been incurred. The buyer can also demand corrective performance, at the same time the seller has a right to correct also after the goods have been delivered. Seller? s remedies in the event of the buyer? s breach of contract (CISG) When the buyer breach a contract in case: 1. Not paying for the goods 2. Not taking delivery of the goods. In such cases happen, the seller has the rights to: 1. Affirm 2. Cancel 3. Claim damages. Conclusion It is benefit for the Royal Greenland Company to put then in a good position if they are similar with the CISG and doing the international sale with China. 8. Economics As attachment in appendix there is the study on investment table as well as the net-cash flow diagram. Anyway below is our conclusion: 9. Conclusion Royal Greenland A/S (Royal Greenland) is a Denmark based company operating in the provision of seafood products. It is one of the worlds biggest producers of coldwater shrimps and a market leader in a wide range of seafood products. The company, along with its subsidiaries is engaged in fishing, processing, production, marketing and distribution of seafood products. The core products of the company include prawn and shellfish products, fillet products, ready to eat products and smoked products. The company operates through a number of production sites across Greenland, Denmark, Germany and Poland, and sales offices in Europe, the US and Japan. Royal Greenland is headquartered at Nuuk in Denmark. Export to restaurants. In our assignment we decided after making an PESTEL analysis in 3 different countries from Far East, to export in China. Beside that we chose to export in the restaurant market. The reason why we chose to export in restaurants is, that restaurant is the largest segment of the profit foodservice sector in China, accounting for 94% of the sectors total value. The pubs, nightclubs and bars segment accounts for a further 1. 2% of the sector Market analysis. The Chinese profit foodservice sector displayed double digit growth over the 2007 to 2011 period. The sector is forecast to post healthy growth during the period up to 2016. In comparison, the Japanese sector will decline with a compound annual rate of change (CARC) of -0. 8%, and the Indian sector will increase with a CAGR of 17. 4%, over the same period, to reach respective values of $102. 8 billion and $58. 1 billion in 2011. Sector consumption volumes are forecast to increase with a CAGR of 3. % between 2007-2011, to reach a total of 115. 6 billion visits in 2011. The sectors volume is expected to rise to 133. 1 billion visits by the end of 2016, representing a CAGR of 2. 9% for the 2011-2016 period. The restaurants segment is expected to be the sectors most lucrative in 2011, with total revenue of $135. 5 billion, equivalent to 94% of the sectors overall value. The pubs, nightclubs and bars segment will contribute revenue of $1. 7 billion in 2011, equating to 1. 2% of the sectors aggregate value. Market value forecast In 2016, the Chinese profit foodservice sector is forecast to have a value of $236,162. 1 million, an increase of 63. 8% since 2011. Buyer power in the profit foodservice sector in China Buyers in the global profit foodservice sector are individual consumers, which are large in number but hold very little financial muscle independently. High transaction volumes mean that the impact of any one customer on revenues is usually small. The exception here can be in the case of premium-price, non-chain restaurants, whose business model relies on low-volume, high-margin sales. This lack of financial muscle minimizes the power of buyers, although they benefit from the lack of costs incurred by switching from one profit foodservice player to another. Profit foodservice is not strictly essential to consumers: they can backwards integrate by cooking their own food. Profit foodservice players have invested heavily in brand-building, especially in the low- and medium- price segments. The Uppsala model has described the internationalization of a firm as a process of experiential learning and incremental commitments which leads to an evolutionary development in a foreign market. Royal Greenland Export Royal Greenland A/S sales subsidiaries have been established on the most important markets i. e. in Denmark, France, Germany, Italy, Japan, Sweden, the UK and the USA. The southern part of Asia is yet another potential sales subsidiary location. However, no matter where a subsidiary is placed, company policy dictates that it be managed by local staff to ensure the greatest insight into each countrys market, and dietary and cultural traditions a policy which has proven very rewarding. The Export Division sells about 65,000 t of high-quality products from a constantly expanding product range to 40 main markets all over the world. The divisions product development department ensures that customer demands concerning products and lines are made in consultation with Royal Greenland. Delivery reliability is equally ensured and realised through close collaboration with the Divisions colleagues in Greenland. Royal Greenland Development Royal Greenland Development was established in 1995 to offer its know-how and expertise to Third World fishery development projects. The divisions role is to participate in research fishing aimed at establishing what resources are at hand and to assist with product development and production. Further assistance in the form of raw materials and sales facilities may also be offered by the Division, which works in collaboration with internationally recognized aid organizations. Contracts have already been drawn up in India and Vietnam and business prospects are promising in China, Southeast Asia, Africa and South America. 11. Reference List Global Marketing – A Decision-Oriented Approach Fifth Edition, Svend Hollensen Business and Danish Law Book ttp://www. royalgreenland. com http://www. royalgreenland. com http://www. slideshare. net http://www. stats. govt. nz http://www. linz. govt. nz http://www. economywatch. com http://www. economist. com http://www. cfr. org http://www. heritage. org http://www. nationsencyclopedia. com http://en. wikipedia. org http://www. articlesbase. com [ 1 ]. The countries that are in Far East are: China, Hong Kong, Macau, Japan, Mongolia, North and South Korea, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Papua New Guinea, Philippines, Singapore, Thailand, Vietnam, Russia. Geographically, the Polynesian Triangle is drawn by connecting the points of Hawaii, New Zealand and Easter Island. The other main island groups located within the Polynesian Triangle are Samoa, Tonga, the Cook Islands, Tuvalu, Tokelau, Niue, Wallis and Futuna and French Polynesia. [ 2 ]. - (http://www. royalgreenland. com/uk/Our-company/Organisation/Ownership-and-Asso ciated-Companies. aspx ) [ 3 ]. http://www. royalgreenland. com/uk/Our-company/Facts-Figures. aspx [ 4 ]. http://www. royalgreenland. om/uk/Fishery-and-processing/Production-facilities. aspx [ 5 ]. http://www. slideshare. net/Nokhov/new-zealand-presentation-847054 [ 6 ]. http://www. slideshare. net/Nokhov/new-zealand-presentation-847054 [ 7 ]. http://www. stats. govt. nz/browse_for_stats/people_and_communities/Families/nz-general-social-survey-info-releases. aspx [ 8 ]. http://www. linz. govt. nz/overseas-investment/applications/technical-resources/benefit-nz-factors/new-technology [ 9 ]. http://www. economywatch. com/ world_economy/china/? page=full [ 10 ]. http://www. economist. om/node/21549938 [ 11 ]. http://www. cfr. org/china/chinas-environmental-challenge-political-social-economic-implications/p5573 [ 12 ]. http://www. heritage. org/index/country/philippines [ 13 ]. http://www. heritage. org/index/country/philippines [ 14 ]. http://www. nationsencyclopedia. com/economies/Asia-and-the-Pacific/Philippines-OVERVIEW-OF-ECONOMY. html#ixzz2AIfp1mkg [ 15 ]. http://www. articlesbase. com/outsourcing-articles/technological-factors-in-the-philippines-4035972. html [ 16 ]. http://en. wikipedia. org/wiki/Environment_of_the_Philippines

Christianity in a Postmodern World :: essays research papers

Christian Belief in a Postmodern World: The Full Wealth of Conviction Others have tried to do what Diogenes Allen, Professor of Philosophy at Princeton Theological Seminary, does in his book but none with his breadth or effectiveness. That is, others have attempted to exploit for theism's benefit the hard times now befalling the modern world's emphasis on scientific reasoning and pure rationality, which for quite a while had placed Christianity (and religious belief in general) on the intellectual and cultural defensive. Many of these earlier attempts made use of the Wittgensteinian concepts of "form of life" or "language game" to show that both science and religion depended on unproven assumptions and therefore rested equally on grounds without firm foundations. These kinds of attempts, however, could most always aim no higher than to make the world safe for fideism. And fideism is not to defend the faith. What makes Allen's contribution special and important is his effort to examine in a philosophically rigorous way what we mean w hen we say Christianity is true. He quotes Colossians 2:2 at the start of his book, but I Peter 3:15 is just as appropriate for what follows: "Always be prepared to make a defense to any one who calls you to account for the hope that is in you, yet do it with gentleness and reverence." Allen is very clear whom he is writing for and what his intentions are: "to give those who have no faith compelling rational grounds to become seekers and to those who have faith a greater degree of assurance and understanding than they can attain while constrained by the modern mentality." He divides his book into three parts. The first part begins with a mapping of our current intellectual terrain. In many ways, modernism committed the docetist heresy to human thought. It failed to see human thought as truly embodied and enculturated. Rather, human intellection consisted in pristine, pure rationality undisturbed by culture, bias, or the vagaries of historical situation. Modernism valued evidence and empirical confirmation and therefore strived to remain valueneutral to mirror a phenomenal world that was itself held value-neutral. The author challenges this way of human knowing and finds it insufficient and incapable of meeting the deepest needs of being human. In so doing , he sheds light on the relation between science and religion. Much of this material is rather provocative intellectual history, including a particularly interesting analysis of the Galileo affair and how it was used for polemical purposes by those hostile to theism.

Establish an E-commerce Business

According to International Data Corporation more than ten million people are purchasing goods and services online in the United States alone. E-commerce allows people to exchange goods and services immediately with no barriers of time or distance. E-commerce at its simplest form, is a goal to improve the way business is conducted through technology. I found many E-commerce business sites growing at an exceptional rate. This technology includes marketing and online sales. A business using e-commerce must provide a positive experience for their customers. Because of the increase in the demand by customers, the business must be able to provide properly functional sites. Customers online want the freedom to buy items online from the convenience of their own home. 1. I feel we should establish an E-commerce business of your own book within the next four months, but we must understand brand equity. 2. We should have control over your website, so we must understand the criteria of finding a firm that will obtain this goal. 3. Finally, it is essential that we understand the importance of Electronic Data Interchange aspects of setting up your website. Brand equity is providing access to your site that is error free. Your site should be easy to use and easy to access. By having these things you build customer loyalty. This loyalty becomes an â€Å"extra† that will differentiate your business and products in the eyes of the customer. The most important part of the site is it should be available and ready to take orders. If your system crashes when taking orders, not only are your customers going to have a bad experience but they will not be able to place their order. Most people will take their business elsewhere and there is plenty of competition within E-commerce. In order to run a successful e-commerce site you must be able to control the surges of traffic on your site. These are times where heavy traffic flow could possibly slow your site to a crawl. Websites have a considerable amount to look at when high volumes of traffic occur. The level of control a company has over their site is called Internet Quality Control. There are four main elements such as server control, network control, control of applications and content, and network management. You need these four elements in order to have high control over your web site. An important aspect of e-commerce is the development of EDI. EDI stands for Electronic Data Interchange. EDI was developed to increase supplier relationships and reduce costs. The goal of EDI is to eliminate the use of mail courier and fax. With a new paperless exchange companies would be connected electronically. All transactions are conducted through standardized processes to a trading partner. EDI has allowed firms to increase productivity, improved channel relationships, reduce operating costs, and increase ability to compete internationally. The first benefit of EDI is the increase in productivity. Gains in productivity can be seen in both internal and external operations. Externally, companies can find increases in productivity trough in fewer operations. For example most companies traditionally would create invoices with computer systems. The invoice then would be printed out and sent to the customers. The customer would then enter the invoice information into their computer system and then process the order. This process can take days, but with EDI it can happen with minutes. Internally, companies gain productivity through faster transmission of information as well as reduced data entry redundancy. A study by EDI Group, Ltd., reported the companies using EDI experienced reduced cycle times of 40.3% and a drop of error rates of 10.1% to 4.4%. This study shows how EDI can cause firms productivity to increase. E-commerce is revolutionizing how business operates. Be it through improved customer relations and service or increased efficiency leading to immense savings. It is being recognized as not just improving clerical tasks, but as an integral part of doing business today. Within these necessary steps as in brand equity, control over your website, and Electronic Data Interchange will help you land your customers with satisfaction.

Subprime Crisis And Impact On Banking In India Finance Essay - Free Essay Example

Sample details Pages: 12 Words: 3722 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Subprime crisis, the turmoil on mortgage markets has claimed several causalities. Banks have transferred risks to special entities SIVs and SPVs. This practice has given the impression that the credit risk has been transferred from banks to investors. Don’t waste time! Our writers will create an original "Subprime Crisis And Impact On Banking In India Finance Essay" essay for you Create order In traditional banking loans were kept in on bank ´s balance sheets. Now the complete process of originates and distribute model involves borrowers, originators, arrangers, credit risk agencies and investors. This process means credit market imperfections. The banks have less incentive to monitor the quality of borrowers and the quality on original loans. As a result of originate and distribute model of subprime loans there is a capital shortage on financial markets. Market participant do not rely on each other. Banks have lost money on mortgage-backed securities on two ways; Prices went down on the trading books and defaults went up in the banking books. It is estimated that the total write-downs on subprime asset backed securities will reach 285 billion US Dollars. In the case of the subprime crisis, the situation is based on an accumulation of several risks; market risks, credit risks and also strategic risks. So the crisis poses real challenges for financial markets reg ulation process. In the case of the subprime crisis, the situation is based on a collection of several risks: market risks, credit risks and also strategic risks. Originate and distribute strategy has generated a situation, where banks have lost money on mortgage backed securities in two different ways, prices went down on the trading books and defaults went up in the banking books. Subprime crisis, the turmoil on mortgage markets has claimed several causalities. Banks have transferred risks to special entities SIVs and SPVs. This practice has given the impression that the credit risk has been transferred from banks to investors. In traditional banking loans were kept in on bank ´s balance sheets. Now the complete process of originates and distribute model involves borrowers, originators, arrangers, credit risk agencies and investors. This process means credit market imperfections. The banks have less incentive to monitor the quality of borrowers and the quality on orig inal loans. As a result of originate and distribute model of subprime loans there is a capital shortage on financial markets. Market participant do not rely on each other. Banks have lost money on mortgage backed securities on two ways, Prices went down on the trading books and defaults went up in the banking books. It is estimated that the total write downs on subprime asset backed securities will reach 285 billion US Dollars. In the case of the subprime crisis, the situation is based on an accumulation of several risks; market risks, credit risks and also strategic risks. So the crisis poses real challenges for financial markets regulation process. Subprime crisis: The main tasks of financial institutions are there allocation of resources, division of risks and sustaining the general payment system. (1994, 19-20) From an operational point of view, it is possible to divide the functions into three key elements: payment system, loans and deposits. Payment system refers to a service provided for the customer, where a cash transaction can be deposited to a bank. This task is shifting from manual, over the counter transactions to electronic and internet-based formats. Modern banking is facing various new challenges, such as continuous need for creating innovations and improving operations in the banking industry. A bank is defined generally as a financial intermediary. There is also another way of thinking the concept. One example is Prosper, an online community for lending and borrowing money without the intervention of banks. Prosper is an online auction platform. It generates revenue by collecting one-time fees on funded loans from borrowers an d assessing loan service fees to lenders. Still the traditional banking is operating on the 6 traditional ways. A financial intermediary participates to the payment system and finances customer entities in financial deficit using the funds of customer entities in financial surplus. At the macroeconomic level, banks finance each other through interbank operations. Among the financial intermediaries, the specificity of banks is to issue money, broadly defined as demand deposits and short-term deposits. Taking deposits is therefore the main task of a bank. Customers are accustomed to rely on banks and this is the main reason for giving money to a bank depository account. If a customer needs a loan, the primary commodity is naturally the money, in other words capital. You can see also the secondary advantage: saving time. The loan, given by a financial institution, makes it possible for the customer to purchase items of significant value or invest the capital, whenever the need arises. From the bank point of view, credit always involves handling risks. In the market economy, the banks are competing with loans and credit risk. Subprime Crisis and the Impact on India: As interest rates started falling due to excess liquidity, house prices rose rapidly, creating a pool of wealth in the hands of Americans, which they unlocked by contracting mortgage loans. It benefited them in two ways they got huge liquidity at inflated housing prices and interest rates that were practically lowest in the last twenty years. This became a virtuous cycle, which resulted in very high consumer spending, obviously fuelling global growth. As interest rates started rising in the US due to inflation concerns, this virtuous cycle came to a standstill and the demand for houses started tapering. This resulted in lower prices for houses and many were unable to cover the mortgage loans. It has now hit the entire  banking  industry in the US and the virtuous cycle is becoming a vicious cycle. Perhaps a similar story will unfold in the next couple of months for these lenders who have lent big money into the subprime markets. One or more banks will fold, jus t like Enron did, resulting in a huge crisis of confidence. It would be naive to wish away this major problem inflicting the global markets and to presume that the Indian market is decoupled. If the global super-tanker US, which has a 25 per cent share of global GDP, slows down it will definitely have an impact on the Indian economy. Only time can decide which policy becomes successful. More importantly, no one can predict a change of plans in the Oval office. The Impact of US subprime crisis on India may not be very large according to economists. It is being anticipated that the developing countries might be spared for a year or two and neither of the countries would be affected either by economic recession in the USA or the prevailing US subprime crisis. This notion was put forward by the leading economist of the World Bank. Effect of US Subprime Mortgage Crisis on the Banking Sector: Effect of US subprime mortgage crisis on the banking sector has been immense. This is evident from the fact that banks as well as stock markets were affected in every nook and corner of the world. The European Central Bank or the ECB came to the rescue of many. The amount injected by the ECB to rescue the other banking institutions was ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬95 billion. The rate of interest was 4%. This was the first rescue operation, the second and the third followed with a cash assistance of ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬61 billion as well as ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬47.67 billion respectively. The approach taken by the authorities of other Central Banks were also varied. Central Bank of Japans contributions to the financial markets comprised injection of 600 billion yen or ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬3.6 billion. The price of stocks fell in Frankfurt, Tokyo and New York. In fact, the financial assistance, which the ECB had shelled out, exceeded the amount it shelled out after terrorist attacks on the World Trade Center on 11th September. Effect of US subprime mortgage crisis on the banking sector did not spare IKB Deutsche Industry bank in Germany (Europe). The bank had to be bailed out by a payment of USD11.1 billion. It has investments in the United States mortgage market. A bank in France, known by the name BNP Paribas halted all withdrawals. This step was taken by the bank as the actual value of the assets was not being ascertained. Another bank, which was about to declare bankruptcy was West LB. Deutsche Post bank as a measure to combat the effects of US subprime mortgage crisis on the banking sector redirected or re routed Euros worth hundred million of the banks funds. Baffin, a federal agency in Germany is responsible for the regulation of the industry dealing with financial services. Other effects of the crisis include rise in rates of interest. As a result of this, lending business got stalled. The signals started from the money market. In the money markets there is liquidity and the bank s carry out several transactions to keep the system functioning. If the functioning of the money markets gets distorted, the whole system gets upset. Indian Banking sector challenged by domestic, not global, factors: October 14, 2008: CRISIL believes that the Indian banking system is relatively insulated from the factors leading to the turmoil in the global banking industry. Further, the recent tight liquidity in the Indian market is also qualitatively different from the global liquidity crunch, which was caused by a crisis of confidence in banks lending to each other. Says Roopa Kudva Managing Director and Chief Executive Officer, CRISIL, While the main causes of global stress are less relevant here, Indian banks do face increased challenges due to domestic factors. The banking sector faces profitability pressures due to higher funding costs, mark-to-market requirements on investment portfolios, and asset quality pressures due to a slowing economy. CRISIL views the strong cap italization of Indian banks as a positive feature in the current environment. Indian banks global exposure is relatively small, with international assets at about 6 per cent of the total assets. Even banks with international operations have less than 11 per cent of their total assets outside India. The reported investment exposure of Indian banks to distressed international financial institutions of about USD1 billion is also very small. The mark-to-market losses on this investment portfolio, will, therefore, have only a limited financial impact. Indian banks dependence on international funding is also low. Subprime crisis impact on Indian economy: The Impact of US subprime crisis on India may not be very large according to economists. It is being anticipated that the developing countries might be spared for a year or two and neither of the countries would be affected either by economic recession in the USA or the prevailing US subprime crisis. This notion was put forward by the leading economist of the World Bank. Further, it is being fathomed that even if there is an impact of US subprime crisis on India, it will not be taking place earlier than two years. However, it will be wrongly said if the developing nations like India would be entirely untouched by the ripple effect. The prevailing economic condition in these countries are so strong that it may not feel the upheaval as it would have felt had the economy of these countries been sluggish. During the East Asian crisis, the Indian economy was in the regime of limited convertibility (current account and capital account) thanks to the careful and gradual move towards globalization decreed by the RBI and GOI, which worked as a blessing in disguise and we were not particularly affected. Things have changed since and owing to various international obligations and the understanding that capital is important for the overall growth of the economy, the RBI and GOI have liberalize d a lot on both the current and capital accounts. Integration of the Indian economy into the world economy has brought about many disadvantages too. The question is how to continue as an integral part of the world and also remain unaffected by the crisis happening in other parts of the world? This question may not be so pertinent to a developed economy but for an emerging economy like ours, if we are affected to a great extent by a crisis arising in another part of the world, this will imply one step forward and two steps backward. The present crisis in US may not have such an impact on the world economy because it is confined to one sector of the economy, viz., mortgage and housing but one cannot deny that housing is a sector with large-scale implications. Then what do we learn from this housing crisis? 1. Sound banking practices: The root cause of the subprime mortgage (even prime mortgage loans are in trouble in US; e.g., trouble in Countrywide, Americas bigges t home loan lender) crisis is the unsound credit practices that emerged in the US market. Fake certification, which helps an ineligible person to raise a home loan, cannot be ruled out in India. Housing loan frauds are not uncommon in the cities of India and the aggressiveness with which housing loans are being sold by banks and financial companies in violation of sound credit practices cannot be ignored. Personal loans and overdue credit cards are the other sectors which the regulators and bankers should handle carefully because they have the potential to plunge the Indian banking sector into a crisis. 2. Controlled Derivatives market: Derivatives are financial instruments, which can spread the default risk attaching to loans. All the same, indiscriminate use of such derivatives can lead to havoc as in US. Derivatives lead to such a chain reaction that it will be nearly impossible to quantify the risk of exposure to bad loans and advances subsequently. RBI and GOI should prohibi t indiscriminate use of such derivatives if they intend to introduce such products in India. 3. Limited investment by Indian companies abroad: Prudent investment abroad should be the order of the day. Reckless investment in the derivatives market abroad by banks and financial institutions has to be controlled. In the recent crisis, BNP Paribas of France and Macquarie Bank of Australia have been affected because of such overseas investments. The exposure of Indian banks to the subprime crisis of US is minimal. 4. Quality Inward Investment: FDI should be given priority over FIIs as history has shown that flight of capital in case of FDI is low compared to that in respect of FIIs. Due to their stable nature, FDI can help in the growth of the countrys infrastructure. Articles: Abstract: Indian economy would be less adversely affected by the global economic crisis Link https://cje.oxfordjournals.org/content/33/4/725.full By: Jayati Ghosh The view that the Indian economy would be less adversely affected by the global economic crisis because of limited integration and other inherent strengths has proved to be wrong. The economic boom in India that preceded the current downturn was dependent upon greater global integration in three ways: greater reliance on exports particularly of services; increased dependence on capital inflows, especially of the short-term variety; and the role these played in underpinning a domestic credit-fuelled consumption and investment boom. These in turn made the growth process more vulnerable to internally and externally generated crises, as is now becoming clear. Abstract: Link https://ssrn.com/abstract=1273487 By : William B. and Sanders, Anthony B. The Sub Prime Crisis: Implications for Emerging Markets This paper discusses some of the key characteristics of the U.S. subprime mortgage boom and bust, contrasts them with characteristics of emerging mortgage markets, and makes recommendations for emerging market policy makers. The crisis has raised questions in the minds of many as to the wisdom of extending mortgage lending to low and moderate income households. It is important to note, however, that prior to the growth of subprime lending in the 1990s, U.S. mortgage markets already reached low and moderate-income households without taking large risks or suffering large losses. In contrast, in most emerging markets, mortgage finance is a luxury good, restricted to upper income households. As policy makers in emerging market seek to move lenders down market, they should adopt policies that include a variety of financing methods and should allow for rental or purchase as a function of the financial capacity of the household. Securitization remains a useful tool when developed in the c ontext of well-aligned incentives and oversight. It is possible to extend mortgage lending down market without repeating the mistakes of the subprime boom and bust. Abstract:   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€š Link https://ssrn.com/abstract=1124961 The Subprime Mortgage Crisis and the Social Capital Response By: Raymond H. Brescia This article explores the extent to which social capital theory can respond to the crisis in the subprime mortgage markets. Building on the groundbreaking theories of Robert Putnam in his book BOWLING ALONE: THE COLLAPSE AND REVIVAL OF AMERICAN COMMUNITY, this article seeks to explore the role of trust and social capital in micro-economic transactions, specifically those involving homeownership in general and the subprime mortgage crisis in particular. The article posits that asymmetries of information, the lack of fiduciary obligations between the mortgage broker and the subprime borrower, the incentives built into the subprime mortgage market as a result of mortgage securitization that promote abusive lending practices, deregulation that led to the influx of subprime mortgage products into communities of color, the limits of anti-discrimination laws to address this influx adequately, and restrictions on refinancing built into securitization agreements have all led to the current crisis. In response to these causes of the current crisis, this article suggests changes to the broker-borrower relationship, the promotion of greater consumer education and the creation of problem-solving courts to address the looming foreclosure crisis ABSTRACT: Accounting in and for the Subprime Crisis Link https://link.aip.org/link/ACRVAS/v83/i6/p1605/s1 By: C. P. Chandrasekhar* This essay describes implications of the subprime crisis for accounting. First, I overview the institutional and market aspects of subprime lending with the greatest accounting relevance. Second, I discuss the critical aspects of FAS No. 157s fair value definition and measurement guidance and explain the practical difficulties that have arisen in applying this definition and guidance to subprime positions during the crisis. I also raise a potential issue regarding the application of FAS No. 159s fair value option. Third, I discuss issues that have arisen regarding sale accounting for subprime mortgage securitizations under FAS No. 140 and consolidation of securitization entities under FIN No. 46(R) associated with mortgage foreclosures and modifications. Fourth, I indicate ways that accounting academics can address the implications of the subprime crisis in their research. Abstract: Understanding the Subprime Mortgage Crisis https://rfs.oxfordjournals.org/content/early/2009/05/04/rfs.hhp033 By: James W. Kolari Using loan-level data, we analyze the quality of subprime mortgage loans by adjusting their performance for differences in borrower characteristics, loan characteristics, and macroeconomic conditions. We find that the quality of loans deteriorated for six consecutive years before the crisis and that securitizes were, to some extent, aware of it. We provide evidence that the rise and fall of the subprime mortgage market follows a classic lending boom-bust scenario, in which unsustainable growth leads to the collapse of the market. Problems could have been detected long before the crisis, but they were masked by high house price appreciation between 2003 and 2005. Objectives To find out the reason of subprime crisis. To know the affect of subprime crisis on banking sector. To know that how the Subprime crisis rising. Affect of subprime crisis on Indian economy and financial institutions. To know that how the subprime crisis affect the Banking sector. Research Methodology: RESEARCH Research is a Purposeful investigation. It is a scientific and systematic search for knowledge and information on a specific topic. Research is useful and Research objective can be achieved if it is done in Propose Process. METHODOLOGY The word Methodology spells the meaning itself i.e. the method used by the researches in obtaining information. The data (Information can be collected from the Primary sources and Secondary sources.) Definition of Market Research:- Market research is the constant search for and analysis of fact. It is defined as diligent investigation. By Charles F. Kellering. A researcher looks forward to see what industry may do when it can go longer do what it is doing. He further says that research is done in mans minds are not in laboratories may be necessary. Data collocation method: There are two types of data collocation method- 1. Primary 2. Secondary Primary data- Primary data are those which are collected a fresh and for the first time, and thus happen to be original in character. Method of Primary data collection: Observation method Interview method Questionnaire method Schedule method Secondary Data: Secondary data means data that are already available, they refer to the data which have already been collected and analyzed by someone else. In this case he is certainly not conformed to the problems that are usually associated with the collection of originals data. Secondary data may either be published data or unpublished data. My data collection in primary source was questionnaire and schedule. In secondary source of data collection I have use internet, magazine, books, and Indian journal of marketing. Researcher must be very careful in using secondary data. He must make a minute scrutiny because it is just possible that the secondary data may be unsuitable or may be inadequate in the context of the problem which the researcher wants to study. Source of Secondary data: The secondary source of data collection is the Books, Internet, News paper, etc. These are the secondary source of data collocation. Research methodology: We use the research methodology to find out the hidden truth and research the problems. I have chosen secondary data for this term paper. Secondary Data: Secondary data was collected through various publications of books and journals, websites. CONCLUSION: The subprime crisis arised from the USA and then this affects the whole countries of the world. One of the country is India which had bad affect of this. And then in India various sectors were affected by this crisis private sector and public sector also. Many banks were affecting by this crisis and they were insolvent. In the case of Insolvency the banks were cant be able to payment to the creditors. The mail function of the bank is to provide loan and get profit by this but in the rotation the banks are insolvent and cant be able to return money. The subprime crisis had bad affect to the banking sector of the India and it is also harmful for the Indian economy.