Multinational Enterprises Engage In Foreign Direct Investment Economics Essay

Multinational Enterprises Engage In Foreign Direct Investment Economics Essay A multinational enterprise is defined as an enterprise that engages foreign direct investment (FDI) and owns or controls value adding activities in more than one country (John H. Dunning, 1992). Today all big multinational enterprise was once a small firm with a less number of employees. Once the firm started manufacturing the product according to customer needs and satisfaction, then the firm can achieve high success in the market. To start a business a firm needs a capital amount. In the beginning stage of business the firm does not know how to market the product and who are the entire customers and what actually the consumer want. The main reason that firms outsource the products is to know what actually the consumer really needs and to understand the market conditions. Outsourcing helps to reduce the overall costs in an organization. So the cost factor becomes less. Once the firm satisfies customer needs and satisfaction then the business and market can be globally expanded. To achieve high success in business, the firm has to design products according to consumer needs and satisfaction than market conditions. Market conditions are also an important factor; the firms should know how well the product is playing into market and how long it lasts in the market. Customers are the king source in business. To reach our product to all kinds of customers is through advertising, the advertising costs are expensive. So if the firms outsource the product then there is no problem to worry about advertising costs. To expand the business globally the firm has to manufacture products with good quality. A national enterprise is the one which does business within the country and it has no foreign direct investment (FDI) and no exchange value. The difference between national enterprise and multinational enterprise is national enterprise has less number of competitors and multinational enterprise has more number of competitors. Once the business started growing globally the multinational enterprise contributes fifty percent of funds to its organization. To do a business in a particular product, the product has to be patented. The cost of obtaining the patent license is expensive. So if the firms outsource the products then the patent cost becomes less. If the patent license is obtained, then the business can be expanded globally and export cost is also reduced. Globalization is the circulation of goods, services and capital, but also information, ideas and people. It has shaped all of the twentieth century, albeit with large cyclical variations and has become an increasingly visible force in recent decades (World Bank, 2000). FDI Local Packing Assembly Export through own Supply representative or sale subsidiary vxfczxfgd Representative or sales subsialary Export via agent or distributor License Time Depth of involvement in foreign market Fig: 1 Entry into foreign Market Source : Rugman A.M., and Collinson S,2009 Once the business starts growing globally, the competitive advantage also starts increasing. We will come to know about latest technology in the market and more firms in the world. In the initial stage the firm should target only one country to market the product. Once the firms become success in that country then the firms can target many other countries. If the firm exports the product through agents or through distributors then the firm will come to know about the market conditions and the competitive advantage of the product. The important thing is that firms should concentrate mainly on quality, customers need and satisfaction and market condition of the product. The reason that firms export the product through agents or through distributors is the exportation cost. The exportation cost is less. Once the quantity of customers is increased, then the firm can achieve high profits. Then gradually the firm can increase its production and globally the market is also expanded. The firms can exchange ideas and information, improves communication and networking is developed. Initially the main reasons for outsourcing the business are the cost factor. Cost is an important factor to design a business. While doing business the firms should know how to control the overall costs and expenditure. The main aim is to manufacture products with good quality and low costs. The raw material costs are high and the availability of raw materials is very low. Once the number of consumers is gained the business is expanded globally and the firm itself can directly market the product. The main reasons for multinational enterprises are responsiveness to environmental forces such as competitors, customers, suppliers, financial institutions and government. Attracts common pool of resources including assets, patents, trademarks and human resources. More number of competitors starts increasing once the firms become multinational enterprise. The level of development of each country vis-à  -vis the aforementioned prerequisites clearly differs (Patrick, 2000). Central Europe is advanced in terms of infrastructure and privatization than south-west Europe. Mainly western countries give tax benefits and the government itself will provide funds for the firms which are all sick. Foreign direct investment takes an increasingly important role in the restructuring process which hinges on a number of variables. The main reasons that firms go for multinational enterprise is the job opportunities. Job opportunities will be expanded and a large number of employments are provided to large number of people. The national enterprise face pressure from trade union activity to avoid company spread their bases around the world; this in turn weakens the companys growth and economy. One of the important reason firms go multinational is to increase sales and to expand production activities. National firms naturally do not become multinational firms; the company has to expand its production, manufacture good quality products and should solve the problems. There should be a smooth flow in running the firms. Then only the company has improved in its production, profit, technology and growth. The advantages of multinational company are as follows:- Marketing opportunity: When they expand over different countries their market expands. The products can be marketed world-wide in different parts of the world and the exports also can be increased. Joint -venture with overseas countries also makes a national firm multinational. Research and Development: This helps us to manufacture products with good quality. If any failure occurs, while designing a product, this helps us to rectify the errors. And immediately the problem is solved. Export promotion: Export and import plays a key role for the countries income. Lot of foreign exchange is earned through supply of raw materials, technology and various other product. Growth of industry: The growth of multinational companies are considered to be quick when compared to others. It also helps the domestic companies to grow by giving work opportunities. They also help them enter global market through their network. Gives latest technology: it plays the role of manufacturing good quality products and reduces the cost of production. Multinational companies are basically rich. It solves the bridge between developed countries and developing countries. Optimum utilization of resources: this helps us to utilize the natural and artificial resource in a preserved manner. Uses natural and artificial resources of the home country. Home country gets benefited by the growth of these companies. Help to local industry: This provides a ready market to domestic suppliers of raw materials or semi-finished products Management opportunities: Opens management opportunities to management students who can be appointed as professional managers to earn a handsome salary and build reputation of the company. National development: Developing countries are highly benefited by the multinational companies. It helps them to increase their efficiency and improve the technology and most importantly foreign direct investment. It helps the developing country improve economically as well by providing financial and technical support. Monopoly: When multinational company enters in to domestic market they compete with existing competitors and break the monopoly of selected few companies. Conclusion Firms go multinational as they are bound to have many advantages such as cheap labour, cheap raw materials which will help them in cost cutting. They enter into a competitive market and strive to increase their sales. There are three important stages to become a multinational firm. They greatly depend up on export and expansions of export sales to justify building new plants out of the countries. Secondly overseas production, there must be a limit to overseas sales that is being halted by a multinational company. Lastly the firm needs to start their research, planning, organizing, coordinating, production, marketing and financial support which is said to be RD (Research and Development) to go multinational. In deciding whether the reasons for becoming multinational have changed, considering the buzz word has only been around for the best part of forty years it is fair to say that it has not. If we look back at the end of the last century the only difference is that the huge petroleum companies, gold mines and fruit growers only became multinational. To get closer to their market, the transport of such goods are difficult than it is today. Indeed, as recently as it could still be taken as axiomatic that it was both desirable and feasible for firms that were diversified both by product and to develop multidimensional strategic capabilities. To build broader organizational capabilities those transcend formal structure. Referencing Artisien.P and Maksimenko 2000.  Multinationals in Eastern Europe. London: St.Martins Press Inc. pp.11-35 Coolreferat. 2008.  Why Do National Firms Become M Essay. [ONLINE] Available at:http://pda.coolreferat.com/Why_Do_National_Firms_Become_M_Essay. [Accessed 29th March 2011] Haider. M.J. 2010.  Advantages of Multinational Company  . [ONLINE] Available at: http://www.indiastudychannel.com/resources/125324-Advantages-Multinational-Company.aspx. [Accessed 24th March 2011] John H. Dunning, 2000. The eclectic paradigm as an envelope for economic and business theories of MNE activity, International Business Review 9 (1), pp.163-190. Needle,D. 2004. Globalization: Paoli,L. and Cooke,A.  Business in Context. 5th ed. Hampshire: Rennie,T. pp.11-46. Rugman A.M., and Collinson S, 2009.  International Business. 5th ed. Essex: MCGraw-Hill. pp.7-21,39-45. World Bank. 2000.  Poverty in Age of Globalisation. [ONLINE] Available at:http://www.sph.umich.edu/symposium/2004/pdf/povertyglobalization.pdf. [Accessed 29th March 2011]

Toni Morrison and Emily Dickinson Poetic Description :: Poetry Poem

Toni Morrison and Emily Dickinson use poetic description to engage the reader into the moment. Poetry is a language with different elements. Some say that poetry has to have literary elements such as metaphors and similes. Others stress rhythm and rhyme as the most important part of poetry. Personally, poetry can be about anything and have no clear definition to it. Emily Dickinson’s poem â€Å"Success is Counted Sweetest† has rhythm and rhyme, metaphors and similes. In Morrison’s novel Sula, the scene where Hannah dies also has poetic elements. In the poem â€Å"Success is Counted Sweetest† the speaker states that â€Å"those who ne’er succeed† (2) place the highest value on success they â€Å"count† it â€Å"sweetest†. In order to understand the richness of this, the speaker states one must feel â€Å"sorest need.† (4). Dickinson states that the members of the victorious army â€Å"The purple host/Who took the flag today† (5-6) are not able to label victory as well as the defeated or dying man who hears from a distance the music of the victors. People tend to desire things more intensely when they do not have them. This poem goes to show that Dickinson is pretty aware of the complicated truths of human desire. Dickinson switches roles and speaks on behalf of the dying man, who hears the victorious celebrating. To the dying man, defeat meant that he had lost everything. This poem causes the reader to think about what success and failure are truly about. To the dying man on the field of battle, barely living would have been a priceless success. Instead, the men celebrating victory are those who won the war. Dickinson uses each verse to relate a different perspective of success and need. In the first, she introduces how those who long for something they never have achieve a greater thrill of achievement than somebody who had the same thing the deprived sought for all along. In the second verse, Dickinson discusses the victorious soldiers who acquired something apparently neither here nor there to their existence. This thought is associated in the final verse when the tragedy and yearning of the wounded is revealed. In Morrison’s â€Å"Sula† the death of Hannah is very poetic. To begin with, Hannah takes a nap and dreams of a red bridal gown. She tells Eva about it, but Eva is too distracted by Sula’s adolescent behavior to think much about it.

Antidumping and the WTO Essay example -- Economy Economics Environment

Antidumping and the WTO While antidumping doesn't get a lot of press, it is certainly one of the biggest issues that the WTO is dealing with today. During the recent WTO Ministerial Conference in Seattle, much was mage about protesters who were demanding higher environmental standards or international labor standards. Little was mentioned about antidumping. However, In the midst of the many demonstrators there were steel workers and members of other union organizations like the AFL-CIO who were there to defend US antidumping laws. Antidumping regulation was a major issue for Seattle as it is for the organization of the WTO in general. From the inception of the WTO, there has been controversy over antidumping laws from diverse groups. Some countries feel that other countries place antidumping measures on products that have not really been dumped. Since the 1994 Uruguay Round, many developing nations feel that they have been unfairly targeted for antidumping penalties by the industrialized nations. Count ries such as Japan and South Korea have also called for reforms. The US, being the largest economy in the world tends to be on the receiving end of much of this controversy about its national antidumping laws. Adding to the confusion, not many cases brought to the WTO panels have been settled as of yet. There are many complaints about antidumping procedures, and some economic graphs can be used to demonstrate these complaints about antidumping and the WTO's antidumping laws. In 1995, the World Trade Organization was born out of the Uruguay Round of trade talks. The WTO has upwards of 123 member countries and new members are always in the process of joining. The WTO is an organization that basically a more formal extension of the GATT (General Agreement on Tariffs and Trade) which had existed for around 50 years. However, the WTO agreements also cover trade issues not in the GATT agreement, such as trade in services and intellectual property rights. Also, WTO member countries must ag ree to all the obligations of its agreements. The WTO also features binding panel resolutions. Countries must accept the panel rulings; under GATT that was not necessarily true. Still, WTO embodies the same spirit as GATT. It favors trade liberalization and globalization over trade barriers. In particular, one main objective of the WTO is to reduce trade restrictions, and o... ...tidumping , this paper restricted its examination to only half of the antidumping story; there are many arguments for the antidumping laws that are currently on the books. No one is suggesting that the US or any other industrialized nation let its industries be unfairly put out of business, if that is truly the case at hand. Still, as the Seattle Round demonstrates, the WTO's antidumping laws seem to have satisfied to few countries. Given the spirit of its trade barrier reduction goals, the WTO should make sure it gets its antidumping rules right. Bibliography: "Consultations on FTAA and WTO Negotiations." Consultations with Canadians. 4 Oct. 99 . Dumler, Christopher M. "Anti-dumping Laws Trash Supercomputer Competition." Cato Briefing Papers. 14 Oct. 1997. . Griswold, Daniel T. "Industry Sets Steel Trap for U.S. Economy." Cato Center for Trade Policy Studies Articles. 23 October 1998.. Hindley, Brian and Patrick A. Messerlin. 29 Nov. 1999. "Japan Wants New Trade Talk." Reuters. 29 Oct. 1999. K & S Law. "Combating Injurious Imports." 29 Nov. 1999. Raghavan, Chakravarthi. "Call for Revision of Anti-dumping, Subsidy Rules. " Third World Network. .

Concept of Long Term Care Essay

In this essay it explains how week one reading changes my concept of long term care. The essay will provide two examples of current events related to long-term care and how it has changed. The paper will focus on examples of current events related to long-term care, and how might these examples increase awareness. This paper will explain what are three long-term care populations evident in my local community and if I was aware of these evident. Long term care is a health and social service there to provides services such as assistance with everyday task, such as dressing, bathing and using the bathroom. After this week reading and discussion as a class on long-term care, I would say my concept has changed. I became more aware of the services provided in long-term care settings, also the individual who requires long-term care. People would think of long-term care only for elders, but the type of people need of long- term care can be from individual with chronic conditions, severe mental illness, and also developmental disabilities, automobile or sporting accident anymore can need long term care in life. Reading the week reading also explain Children, is always the type of people in need of long- term care to surprise me. Children born with developmental disabilities such as, Down syndrome affecting the brain, spinal cord, nervous system function causing them to need long- term care. Some of the current events related to long term care that happened, in the past three years increasing levels of violations staff physicians were not maintain on a 24 hour basis. Another current event related to long term care a staff at Crystal Care Center in Mansfield abuse a patient. The patient refuse to have oxygen fed to him through a nasal cannula, the nurse decide to tuck the sheet over the head of the patient. Patient abuse occurred in August 2010 but is rare in the state of Ohio but happens more often in long term care. These example increase awareness of long-term care having families monitor how a family member or friend treat, to see if medical care is provided with an appropriate level. In my community there are three long term care populations age 65 and older, individuals with disabilities and children. Seniors 65 and older is the biggest population in Arizona needing long term care services.

Motivated by applications Essay

Until the last century, mathematics was always motivated by applications (Kline, 1973: iv); it took humanity an enormous time span to reach the abstraction capacity necessary to become interested in ‘pure’ mathematics. It follows that children take some time to reach the necessary mental maturity to deal with the formalism and type of thinking involved in abstracts and mathematics. It is interesting to note that in many countries, 21 (the end of this 7-year period) is the age for a young person to become legally responsible. It is a recognition, that only at this age are all human capacities fully available, and the individual is able to control and be totally responsible for his or her actions (Steiner, 1982; Talbot, 1995 and Bronfenbrenner, 1995). In conclusion, this paper supported my aim to prove that the extensive implementation of computers in pre-high school education is having a detrimental effect on the development of children. The first argument I presented to support my aim is that computer technology is ecological and like all technology may have long reaching effects on children’s emotional, psychological, spiritual, moral and social sensibilities. Fostering a mechanical, rational view of social relationships. Secondly, I argued that a computer is a tool, and to be effective it is necessary children understand what it is and how it works. Just as a child’s physical development is stunted when muscles are not exercised, the development of disciplined thinking is stunted when the computer relieves the child of the responsibility for planning and organizing his/her thoughts before expressing them. It should be kept in mind that tools designed to aid the mature mind may hinder the maturation of the developing mind. Thirdly, I supported my aim by arguing that computers work with an extremely restricted class of children’s thoughts. It was demonstrated that early computer use and an emphasis on computer like thinking, is leading children’s development to be dominated by the rigid, logical, algorithmic thinking, that is characteristic of computer interaction. This accelerated, but isolated intellectual development, brings a child’s mental abilities to an adult level long before they have grown strong enough to restrain it and give it humane direction. The fourth argument presented to support my aim was, that how computers are used in education is detrimental to children’s development. Children need time for active, physical play; hands-on lessons of all kinds, especially in the arts; and direct experience of the natural world. The prevalent emphasis on technology is diverting us from the urgent social and liberal educational needs of children. A proper education requires attention to students from good teachers and active parents. It requires commitment to developmentally appropriate education and attention to the full range of children’s needs; physical, emotional, and social, as well as cognitive. Finally and most importantly I demonstrated that developmental stages in children are not compatible with computer use. Combining Steiner, Bloom and Krathwohl developmental concepts with the fact that computers are mathematical tools, forcing a purely abstract and mathematical type of thinking as well as use of symbolic formal language. Applying these concepts and properties of computers to proper educational goals we may surmise that they are unsuitable for extensive use by children in any form before approximately age 15, or high school. Convincing arguments have been presented to prove the extensive implementation of computers in pre-high school education is having a detrimental effect on the development of children. Bibliography: Bloom, B. and D. Krathwohl. Taxonomy of Educational Objectives: Handbook 1: The Cognitive Domain. New York: McKay, 1956. Bronfenbrenner, U. Developmental Ecology Through Time and Space: A Future Perspective in Examining Lives in Context: Perspectives on the Ecology of Human Development, (Moen, Elder and Luscher [Ed.]). Washington: American Psychology Association, 1995. Bowers, C. A. The Cultural Dimensions of Educational Computing – Understanding the Non-neutrality of Technology. New York: Teachers College Press, 1988 Coon, D. Essentials of Psychology: Exploration and Application (8th edition). USA: Wadsworth/Thomson Learning, 1999 Craig, G. , M. Kermis and N. Digdon. Children Today (2nd edition). Toronto: Prentice Hall. 2001 Kline, M. Why Johnny Can’t Add – the Failure of New Math. New York: St. Martin’s, 1973.

Abercrombie & FItch vs American Eagle Essay

INTRODUCTION Fashion may be defined as a way of living, decorating, etc., which is popular today, but will soon lose their popularity. It is something passing and temporary, a simple craze of the moment to be looked down upon with dislike. For example, tight pants are the fashion today, but only a short while ago broad loose pants were the order of the day. If today a man appears in society wearing broad pants, he would be held up to ridicule, but only a few years ago they were the height of fashion, symbols of good taste and culture. American Eagle Outfitters (AEO) and Abercrombie & Fitch (A&F) are two companies that play a major role in the clothing industry. The following discussion with compare and contrast the competitive advantages of the supply chain of the two companies. COMPANY HISTORY AEO American Eagle Outfitters, Inc., a billion dollar corporation, is ranked as one of the largest retail chains in America. With their central corporate headquarters in Pittsburg, Pennsylvania, and two other corporate facilities located in New York City and Tokyo, Japan, American Eagle, Inc. operates numerous mainline stores, factory stores, franchised stores, and distribution centers across the country and the globe. In 1977, brothers, Jerry and Mark Silverman, who owned and operated Silverman’s Menswear, a Retail Ventures, Inc. company, founded American Eagle Outfitters. Opening their first store in Novi, Michigan at Twelve Oaks Mall, the Silverman brothers were hoping to diversify their menswear line (AEO Management Co., 2013). Several stores were opened up and a catalog was created. American Eagle Outfitters continued to grow into 1990, when Jacob Price took over which led to the introduction of casual, private-label merchandise for men and women. In 1994, American Eagle Outfitters became  part of the NASDAQ stock exchange, which enabled the opening of 90 stores the following year (AEO Management Co., 2013). In 1996, new executives joined AEO and decided to modify the target demographics of the target market and reach more women, as well as focus on those who were between the ages of 18 and 32. Shortly after, American Eagle expanded to e-commerce with ae.com. By 2000, American Eagle operated 500 stores and revenues for the company quintupled to $1 billion. The Canadian market was penetrated in 2001 and in 2003 American Eagle expanded to Hawaii. Aerie, a brand extension of American Eagle, focusing on intimates for women, was launched in 2006. Another line extension, 77kids, which offered clothing for babies to pre-teen girls and boys, was established online in 2008 and the first 77kids store was opened in 2010. Today, American Eagle Outfitters, Inc. operates over 1,000 stores, including 911 American Eagle Outfitters stores, 158 Aerie stores, and 21 77Kids stores, 21 of which are franchised around the globe. Additionally, ae.com, which includes links to Aerie and 77kids, reaches 77 countries. American Eagle Outfitters offers apparel, shoes, and accessories for both men and women. Clothing merchandise is comprised of denims, sweaters, graphic T’s, fleece and sweatshirts, outerwear, tops and shirts, dresses, and skirts. Shoe merchandise includes sneakers, boots, flats, sandals, slippers, clogs, heals, loafers and socks. Accessories merchandise consists of jewelry, hats, sunglasses, scarves, bags, perfume and cologne, purses, and wallets. Aerie offers merchandise for college girls that include dorm wear, such as sweats and pajamas, exercise apparel, bras, underwear, accessories, and some personal care items. 77kids offers apparel for infants, children, and preteen girls and boys (AEO Management Co., 2013). A&F Abercrombie & Fitch originated in 1891 as a retail sporting goods store based in New York City. It was known for its wide variety of expensive and often exotic sporting equipment and attire, ranging from tennis shoes to elephant guns. For more than half a century, the store’s apparel, guns, tackle, and other merchandise were the image of wealth and prestige. When it expanded, the firm confined its new branch stores to downtown areas of large cities and to resort areas. In the early 1970s, Abercrombie & Fitch attempted to widen its customer base by adding less-expensive items to its usual stock and by moving into the suburbs, where other stores had been building for some time. Although these steps did attract new customers, they came too late; Abercrombie & Fitch was in financial trouble and filed for bankruptcy in 1976 after 85 years in business (Encyclopedia Britannica Online, 2013). Oshman’s Sporting Goods, Inc. bought the firm in1978. In 1988 Abercrombie & Fitch was bought by The Limited, Inc (Encyclopedia Britannica Online, 2013). Repositioned as the trademarked â€Å"casual luxury† brand, it became parent to the subsidiary brands Abercrombie kids, a children’s line launched in 1998 and marketed as Abercrombie; Hollister Co., a line for younger teens launched in 2000; RUEHL No. 925, a line targeting post-graduate s launched in 2004; and Gilly Hicks, a women’s line launched in 2008. Following Abercrombie & Fitch’s overhaul, the company received significant criticism for its advertising and its clothing, which were perceived by many as encouraging its target audience to adopt a sexually promiscuous lifestyle (Encyclopedia Britannica Online, 2013). MISSION STATEMENT AEO American Eagle has a clearly defined set of â€Å"corporate values† which guides the actions of employees at all levels of the AE organization: PEOPLE The vitality of our company resides in our people. We collaborate, we engage, we achieve (About.com, 2013). INTEGRITY We hold ourselves accountable to the highest standards. In the face of difficulties and challenges, we don’t compromise (About.com, 2013). PASSION Our passion infuses our actions and purpose. It transforms stores into places of energy and customer delight (About.com, 2013). INNOVATION We operate in a dynamic and competitive industry. We continually refine the unique processes that drive our business, and we use insightful research and analysis to balance our instinct and to guide our decisions. Our associates embody entrepreneurial spirit, develop creative solutions, and initiate change (About.com, 2013). TEAMWORK We work together – listening to one another, reaching consensus and supporting group decisions. We celebrate achievements. Because we respect and trust one another and commit ourselves to our company goals, our teamwork succeeds (About.com, 2013). Additionally American Eagle has a service goal that guides employees in their everyday retailing tasks: â€Å"We respond to the needs of our customer and enjoy the satisfaction of a job well done (About.com, 2013).† A&F â€Å"Abercrombie and Fitch focuses upon high-quality merchandise that compliments the casual classic American lifestyle (About.com, 2013).†   But beyond that simple mission statement, Abercrombie & Fitch emphasizes its brand vision, brand attributes, and the value of the Abercrombie & Fitch brand, which has been of ultimate importance since CEO Mike Jeffries took on the leadership role. Abercrombie & Fitch has said this about its brand to its stakeholders: â€Å"The A&F brand is more authentic and relevant than ever. The brand is our lifestyle, our focus—it ensures growth and promises stability. A great brand is a center of growth and revenue—it represents a relationship with customers. It’s not a faddish chip to be cashed in on shortsighted gains. The value of having a great brand is far-reaching and cannot be overstated—it’s a snowball effect. The A&F label gives us the ability to evolve, creating endless growth opportunities. It helps us attract the brightest, most talented young people from around the country. It attracts millions to our website. It allows for greater profit margins. It lessens the risk of moving on new business concepts. It promotes innovation. It ensures long-term profitability. It adds built-in value to everything we produce. It accelerates growth. It stabilizes. It gives focus and direction. It produces an emotional response in consumers (About.com, 2013).† Comparing these two mission statements, it is clear that American Eagle Outfitters is focused more on just their merchandise, unlike Abercrombie & Fitch. AEO has a passion not only for their brand and employees but their consumers as well. While A&F, is only focused on their brand not on the  operational execution of its employees, or the experience of its customers. This holds true of A&F because recently their CEO, Mike Jeffries, came under fire for reportedly saying they only target to â€Å"thin and beautiful people† which is why they do not sell or make any size over 10 or large for women. Mike Jeffries has said, â€Å"That’s why we hire good-looking people because good-looking people attract other good-looking people, and we want to market to cool, good-looking people. We don’t market to anyone other than that (Walker, 2013).† On A&F’s website, they claim to embrace diversity throughout the entire organization but what Mike Jeffries has been quoted saying, is contradictory of what the company claims they are about. â€Å"We are committed to embracing the diversity of our associates and management throughout our organization. On the surface, our dedication to maintaining a diverse working and shopping environment can be easily seen by walking through one of our stores, domestically and internationally. More notably, Abercrombie & Fitch’s commitment can be seen through our exceptional diversity programs, whether they are internal or external, and the results they yield. Diversity reflects the multidimensional insights we share collectively. Simply put, it is imperative to our growth that we staff our business with diverse talent and run our business with an inclusive mindset (Abercrombie & Fitch, 2013).† SUPPLY CHAIN AEO American Eagle Outfitters strategy to improve apparel factory working conditions starts with factory inspections based on their Vendor Code of Conduct. They then focus on remediating the issues they find during those inspections, which often includes additional factory training and capacity building programs (AEO Management Co., 2013). They partner with other brands and retailers, multi-stakeholder organizations, civil society groups, trade unions, governments, and others to better understand and address what is happening in the factories and countries where their clothes are made. By working together, they strive to  collectively develop more sustainable solutions to the problems they find (AEO Management Co., 2013). Finally, they are committed to being obvious about how they are doing. By reporting publicly on their efforts, this is one of the many ways they ensure that they remain focused on their goals, disciplined in their efforts, and accountability for their performance (AEO Management Co., 2013). A&F Abercrombie & Fitch has very tight control over the design and manufacturing of their clothing. To help the company keep control, have higher margins and protect the brand, they design their own ranges which are manufactured exclusively for A&F. The head office for A&F is located in Ohio and is called â€Å"The Campus†. At this location, there is a center known as the â€Å"Innovative Design Center†. Here, a dedicated team uses over 100 wash, quality assurance, lab and graphic machines (Webb, 2009). They are responsible for merchandise design and development. â€Å"Design packages† were created by the company to reduce the time and cost of product development (Webb, 2009). These design packages are then given to the vendors. By keeping strict control over design, manufacturing and product development, the company is able to protect the brand from being copied and having the image damaged. By having greater control, it allows A&F to deliver on their promise to the customer and consumer. This in turn creates a relationship based on trust and gives them a competitive advantage. Again, with Abercrombie & Fitch, they are more focused on keeping control of their brand and image, while American Eagle Outfitters are trying to improve factory conditions for their workers. This once again proves that A&F does not care about their people. CONCLUSION In summary, Abercrombie & Fitch and American Eagle Outfitters play a significant role in the clothing industry. While A&F’s practices are some  what contradictory and outlandish, AEO remains the opposite. A&F needs to take a cue from AEO and focus more on their consumers than just their brand. There is no question why it is that AEO is ranked at 649 on the Fortune 1000 List and A&F is trailing behind them at 651 (Salesforce, 2013). Works Cited Abercrombie & Fitch. (2013). Diversity Commitment. Retrieved from A&F Cares: http://www.anfcares.org/diversity/commitment.jsp About.com. (2013). Abercrombie & Fitch Mission Statement. Retrieved from About.com: http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Abercrombie—Fitch-Mission-Statement.htm About.com. (2013). American Eagle Company Mission Statement. Retrieved from About.com: http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/American-Eagle-Mission-Values.htm AEO Management Co. (2013). AEO History. Retrieved from American Eagle Outfitters: http://phx.corporate-ir.net/phoenix.zhtml?c=81256&p=irol-history AEO Management Co. (2013). AEO Supply Chain. Retrieved from American Eagle Outfitters: http://www.ae.com/web/corpResp/supply_chain/our_strategy.jsp Encyclopedia Britannica Online. (2013). Abercrombie & Fitch. Retrieved from Encyclopedia Britannica Online: http://www.britannica.com/EBchecked/topic/1121/ Abercrombie-Fitch Salesforce. (2013). Fortune 1000 Company List. Retrieved from Data.com Connect: https://connect.data.com/directory/company/fortune/1000 Walker, T. (2013, May 08). Not available in XL. Retrieved from The Indepedent: http://www.independent.co.uk/news/uk/home-news/not-available-in-xl-abercrombie–fitch-ceo-mike-jeffries-accused-of-only-wanting-thin-and-beautiful-people-8608022.html Webb, B. (2009). Managing the Fashion Brand Case Study Assignment.

The Four Planes of Development

â€Å"Development is a series of re-births. There comes a time when one psychic personality ends and another begins†Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ â€Å"Our work as adults does not consist teaching, but in helping the infant mind in its work of development† (Dr Montessori, The Absorbent Mind, Chap 3) What did Dr Montessori mean by the four planes of development? Describe each plane of development. Explain how we use this knowledge about the child in the Montessori classroom, with the main focus at the age group of 0-6 years. THE FOUR PLANES OF DEVELOPMENTThe life of the child that will become tomorrow’s adult is basically divided into four planes or stages. Each plane consists of a period of six years. Within these stages the development of the child is quite intense at the beginning, then it consolidates and finally trickles into the next. The first & third planes of development are periods of intense creation, whereas the second & fourth planes of development are the ca lm periods of consolidation. First plane of development (0-6years) â€Å"Development is a series of re-births.There comes a time when one psychic personality ends and another begins. The first of these periods goes from birth to six years of age and the child’s mentality basically remains the same. It includes two sub-phases, from birth to three years and three to six years. In the first of these, the child has a type of mind that adults cannot exert upon to influence. In the second sub-phase (3-6years), they are still mentally the same but the child becomes susceptible to adult influence and their personality undergoes great changes. † (The Absorbent Mind, chapter 3, Pg 17).The first plane of development (0 – 6 years) is a period of intense creation. This period is of very great fundamental importance for the formation of the child or the foundation of the personality of the child. This is the period of transformation. This plane of development is further divid ed in to two sub phases, (0 – 3) and (3 – 6) years. The first sub plane is known as ‘The unconscious absorbent mind’. The infant during this period is also identified as a ‘spiritual embryo’ as the infant has within himself the potentialities which determine his future development.The child can learn subconsciously, and effortlessly, through observations and explorations. The child is a sensorial explorer at this stage, that is, the child basically learns through his senses. During the absorbent mind stage, the sensitive periods are at their strongest and help the child’s learning process as well as the child’s initial adaptation. During this first plane of development various physical abilities develop in the young child. Physically the body develops from head to toe. Between the age of zero to three years, these abilities develop separately and independently of each other.Hand and leg movements are not guided by the mind. At th is stage, the child needs to create himself. It is a period of rapid development for the child and the child develops physically, mentally, socially as well as emotionally. As his physical body becomes more defined, he learns both consciously and unconsciously as his mind easily absorbs his environment. He becomes more sensitive to things adult take for granted and learning for him is easy and fast. At this stage, he also learns to care for himself, dress himself, feed himself etc.