Objectives And Techniques Of Fiscal Policy Economics Essay

Objectives And Techniques Of Fiscal Policy Economics Essay Fiscal Policys first word Fiscal is taken from  French  word Fisc which means treasure of Govt. Fiscal policy concerns itself with the aggregate effect of government expenditure and taxation on income, employment and production. It refers to the instruments by which a government tries to regulate or modify the economic affairs of the economy keeping in view certain objectives. Thus, fiscal policy is a package of economic measures of government regarding its public expenditure, public revenue and public debt .Fiscal Policy is the most important part of Economic Policy .So ,we can define fiscal policy as the revenue and expenditure policy of Govt. of India .It becomes the prime duty of Government to frame fiscal policy . By making this policy , Govt. collects money from his different resources and utilize it in different expenditure . Thus fiscal policy is related to development policy. Through this paper the objectives , techniques, stances and limitations of a fiscal policy are b eing discussed .An attempt is also been made to highlight the achievements and progress of the fiscal policy of India. Introduction The term fiscal has been derived from the greek word fisc, meaning a basket to symbolize the public purse.. Fiscal policy thus means the policy related to the treasury of the government. Fiscal policy is a part of general economic policy of the government which is primarily concerned with the budget receipts and expenditures of the government. All welfare projects are completed under this policy .It also suggests measures to control economic fluctuations which may become violent and create great upheavals in the socio-economic structure of the economy. It also outlines the influence of resource utilization on the level of aggregate demand through affecting the level of aggregate consumption and investment expenditure. Definitions According to U. Hicks Fiscal policy is concerned with the manner in which all the different elements of public finance , while still primarily concerned with carrying out their own duties, may collectively be geared to forward the aims of economic policy. According to Arthur Smithies Fiscal policy is a policy under which the government uses its expenditure and revenue programmes to produce desirable effects and avoid undesirable effects on the national income ,production and employment. Objectives of Fiscal Policy There are following objectives of fiscal policy :- 1.  Development of Country :- Every country has to make fiscal policy for development of Country . With this policy , all work like govt. planning and proper use of funds for development functions is done . If govt. does not make fiscal policy , then it can happen that revenues are misused  without  targeted  expenditure of Government. 2. Employment :- Getting the full employment is also the objective of fiscal policy . Govt. can take many actions for increasing employment. Government can fix certain amount which can be  utilized  for creation of new employment opportunities for unemployed people . 3. Inequality :- In developing country like India , we can see the difference one basis of earning . 10% of people are earning more than Rs. 100000 per day and other are earning less than Rs . 100 per day . By making a good fiscal policy , govt. can reduce this difference if govt makes it as its target . 4. Fixation of Govt. Responsibility:- It is the duty of Govt. to effective use of resources and by making of fiscal policy different ministers accountability can be checked . I was seeing the Episode of Chanakya on  YouTube  in which I found that in old time fiscal policy was made and treasury officer and even prime minister are also responsible for any shortage of govt .fund Techniques of Fiscal Policy   1. Taxation Policy   It is one of the powerful instruments of fiscal policy in the hands of public authorities which greatly affects changes in disposable income ,consumption and investment. Taxation policy is relates to new amendments in direct tax and indirect tax . Every year Govt. of India passes the finance bill . In this policy govt. determines the rate of taxes . Govt. can increase or decrease these tax rates and amend previous rules of taxation .Govt.s earnings main source is taxation . But more tax on public will adverse effect on the development of economy. à ¢Ã¢â‚¬  Ã¢â‚¬â„¢ If Govt. will increase taxes , more burden will be on the public and it will reduce production and purchasing power of public . à ¢Ã¢â‚¬  Ã¢â‚¬â„¢ If Govt. will decrease taxes , then publics purchasing power will increase and it will increase the inflation. Govt. analyzes   both the situation and will make his taxation policy more progressive . 2. Govt. Expenditure Policy   There are large number of public expenditure like opening of govt schools , colleges and universities , making of bridges , roads and new railway tracks . For the above projects govt has paid large amount for purchasing   and paying wages and salaries ,however ,all these expenditures are paid after making govt. expenditure policy . Govt. can increase or decrease the amount of public expenditure by changing govt. budget . So , govt. expenditure is technique of fiscal policy by using this , govt. use his fund   first on very necessary sector and other will be done after this . 3. Deficit Financing Policy   If Govt.s expenditures are more than his revenue , then govt. should have to collect this amount . This amount is deficit and it can be fulfilled by issuing new currency by central bank of country . But , it will reduce the purchasing power of currency . More new currency will increase inflation and after inflation value of currency will   decrease . So, deficit financing is very serious issue in the front of govt. Govt. should use it , if there is no other source of govt. earning . 4. Public Debt Policy If Govt. thinks that deficit financing is not sufficient for fulfilling the public expenditure or if govt. does not resort to deficit financing , then govt. can take loan from   world bank , or take loan from public by the way of issuing govt. securities and bonds . But it will also increase the cost of debt in the form of interest which govt. has to pay on   the amount of loan . So, govt. has to necessarily make solid budget for this and after taking into consideration the amount which is taken as debt. This policy   can also use as the technique of fiscal policy for increase the treasure of govt. Internal sources of debt include market loans, compensation bonds,15 years annuity certificates ,small private savings through various saving schemes. External sources includes in borrowing from the external market ,from international institutions such as the World bank, IMF IDA etc and the governments of other countries. 5.Budget .Fiscal policy operates through the budget .Thus it is also called budgetary policy. The term budget is derived from a French word Bougette which means a leather bag or a wallet used to carry financial papers. The budget of a nation is a useful instrument to assess the fluctuations in an economy. Different budgetary principles have been formulated by the economists ,prominently known as the annual budget ,cyclical balanced budget and full y managed compensatory budget. Fiscal Consolidation à ¢Ã¢â€š ¬Ã‚ ¢ With recovery taking root, there is a need to review public spending, mobilise resources and gear them towards building the productivity of the economy. à ¢Ã¢â€š ¬Ã‚ ¢ Fiscal policy shaped with reference to the recommendations of the Thirteenth Finance Commission, which has recommended a calibrated exit strategy from the expansionary fiscal stance of last two years. à ¢Ã¢â€š ¬Ã‚ ¢ It would be for the first time that the Government would target an explicit reduction in its domestic public debt-GDP ratio. Stances of fiscal policy The three possible stances of fiscal policy are neutral, expansionary and contractionary. The simplest definitions of these stances are as follows: A neutral stance of fiscal policy implies a balanced economy. This results in a large tax revenue. Government spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on the level of economic activity. An expansionary stance of fiscal policy involves government spending exceeding tax revenue. A contractionary fiscal policy occurs when government spending is lower than tax revenue. However, these definitions can be misleading because, even with no changes in spending or tax laws at all, cyclical fluctuations of the economy cause cyclical fluctuations of tax revenues and of some types of government spending, altering the deficit situation; these are not considered to be policy changes. . Thus, for example, a government budget that is balanced over the course of the business cycle is considered to represent a neutral fiscal policy stance. Methods of funding Governments spend money on a wide variety of things, from the military and police to services like education and healthcare, as well as transfer payments such as welfare benefits. This expenditure can be funded in a number of different ways: Taxation Seigniorage, the benefit from printing money Borrowing money from the population or from abroad Consumption of fiscal reserves. Sale of fixed assets (e.g., land). All of these except taxation are forms of deficit financing. Some facts about fiscal policy à ¢Ã¢â€š ¬Ã‚ ¢Government revenues and expenditures dont need to balance every year but over one business cycle à ¢Ã¢â€š ¬Ã‚ ¢Functional finance is the principle that government budgets should be geared to the yearly needs of the economy à ¢Ã¢â€š ¬Ã‚ ¢Defenders of functional finance are those who believe fiscal policy is a powerful stabilization tool. à ¢Ã¢â€š ¬Ã‚ ¢The choice of fiscal policy guideline depends on the governments belief in fiscal policy as an effective tool for stabilizing the economy . à ¢Ã¢â€š ¬Ã‚ ¢In 1970s and 1980s Canada believed in functional finance but recently has made unsuccessful attempts to move toward cyclically balanced budgets. à ¢Ã¢â€š ¬Ã‚ ¢Government deficits were highest during recessions during the early 1980s and early 1990s à ¢Ã¢â€š ¬Ã‚ ¢Tax revenues fell with slumping incomes during that time as a result of the automatic stabilizers à ¢Ã¢â€š ¬Ã‚ ¢Discretionary expansionary policy also contributed since federal government increased purchases of goods and services to counteract the effects of sagging outputs and incomes. à ¢Ã¢â€š ¬Ã‚ ¢1990s downturn caused a concern over increased public debt and lowered confidence in discretionary fiscal policies to counteract a recession. Achievements of fiscal policy in India The fiscal policy has played an important role in the following fields. Mobilization of resources To finance the development need of India ,the government has extensively used the fiscal policy. The policy of public borrowing and deficit financing has enable the government to raise huge amounts of resources for development. Increasing tax GDP ratio is a good indication of the increasing mobilization of resources. The tax GDP ratio was only 6.7 percent in 1950-51 but it has reached to 17.3 % in 2006-07. Increase in savings The fiscal policy has been successful in raising the rate of savings in the household sector, corporate sector and public sector. To encourage savings, prize based schemes to encourage savings, expansion of the network of savings bank, post office schemes. Increase in capital formation Capital formation involves three stages-incentive to save, mobilization of savings and investment of savings .The fiscal policy has tried to influence all the three stages .A well spread network of postal banks ,savings bank, commercial banks, financial institutions and money market is there to collect peoples savings .The government has also been successful in using the savings of the public of the public sector for development. Incentives to investment The government has exclusively used it to influence the government decisions of the private sector. Various tax concessions ,tax rebates, subsidies and fiscal incentives are given to investors. Cottage and small scale industries have survived due to the support of the fiscal policy. The government is mobilizing increased amounts of resources through public borrowings and deficit financing to push up the level of investment in infrastructure ,social sectors, exploration and development of natural resources. Reduction in Income and wealth Inequalities To create equitable conditions in the society ,a progressive tax system has been adopted in the realm of direct taxes. The rate of taxes on income goes on increasing with the increase in income .Direct and indirect taxes are used to mop up more resources from the richer sections of the society. Luxuries are heavily taxed. The government has also launched several poverty eradication programmes to directly benefit the poor people. The poor sections of the society are provided with subsidized grains and other essential items of consumption. Reduction in inter regional variations The states like Bihar, U.P. ,Rajasthan ,Madhya Pradesh, Orissa etc. are given preference while transferring resources from the center to the states .Both statutory and non statutory channels of resource transfer are being used for the purpose. The government of India also gives discretionary grants to economically poor states. In addition to this special incentives, subsidies and concessions are given for locating industrial units in backward regions. Limitations of Fiscal Policy   1.Inadequate resource mobilization The fiscal policy has achieved a mixed success in mobilization of resources. The defective tax system ,limited base of direct taxes ,exemption of agriculture from direct taxation ,evasion of taxes ,inefficient and corrupt tax collection machinery are some of the causes of poor tax collection in the country. Another cause of poor resource mobilization is the low share of non-tax revenue in the total revenue receipts. 2. Inflation of India is increasing rapidly after issuing new notes for payment of govt. of expenses and in this inflation, prices of necessary goods are increasing very fastly. Living of poor people has become difficult due to this . So , these signs show the failure of Indian fiscal policy. 3. Govt. fiscal policy has failed to reduce the black money . Even large amount of   past minister is in the form of black money which is deposited in Swiss Bank. 4. After taking loan from world bank under the fiscal policys debt technique , govt. has to follow the rules and regulations framed by world bank and IMF . These rules are more harmful for developing small domestic business of India. These organizations are inter related with WTO and they intend to stop Indian domestic Industry. 5.  After expending large amount for generating new employment under fiscal policy , rate of unemployment is increasing fastly and big lines on govt. employment exchange can be seen generally in working days . Database of employment exchanges are full from educated unemployed candidates . 6. Fiscal policy and inflation The direct taxes are the main instruments of the fiscal policy. The rise in the rates of direct taxes result in the reduction of the disposable income of the people .The indirect taxes contribute more than four-fifths of the tax revenue .Taxes on commodities, sales taxes ,excise duties, customs etc .add to the prices of commodities .Increase in the rates of sales taxes and excise duties immediately cause a rise in the price level. Conclusion Thus, the fiscal policy encompasses two separate but related decisions; public expenditures and the level and structure of taxes. It occupies the central place for maintaining full employment without inflationary forces in the economy. With its various instruments it influences the economic stability of an economy. The fiscal policy of the Indian government has been very successful in several fields such as mobilization of resources for economic development, increasing rate of savings and capital formation, developing cottage and small scale industries ,reducing the incidence of poverty etc. Despite a few drawbacks of this policy, India has truly achieved a considerable level of fiscal maturity.

Aggression in the 1930s

Adolf Hitler and Joseph Stalin are two of the most prominent figures in world history.   Both are intimidating personalities recognized as dictators in their own countries.   Hitler and Stalin are also similar for having significant roles in the aggression in the 1930s that was World War II.   However, it must be noted that Hitler had a more distinct role in the World War II than Stalin.   Though both men were active dictators during the Second World War.Adolf Hitler had a bigger responsibility in the conflict than Joseph Stalin.Hitler and Stalin were both dictators.   It is appropriate to give them such title as they had absolute power over their respective countries.   They had similar strategies and motives in terms of their aggression that resulted in the war.For instance, both men were motivated by a superiority complex.   Hitler was a firm believer in the superiority of the German race (Weinberg, 2008).   He asserted that Germany needed vast areas of land for ex pansion, so he attacked other countries to create an expansive territory for Germans.   It was this attack which brought Hitler and Germany at the helm of the global conflict.Likewise, Stalin also had a superiority complex.   Immediately after succeeding Lenin as the head of the Soviet Union, Stalin inspired a culture of self-glorification (Perry, 1989).   It was therefore no surprise that Stalin entered into an agreement with Hitler.The German-Soviet Nonaggression Pact stated that the Soviet Union would not intervene with the German aggression against Poland on the grounds that it would receive half of the acquired Polish territory (Knight, 2008; Perry, 1989).However, despite the distinct similarity, there was a significant difference between the political roles they played in the Second World War.   Hitler proved to be the more aggressive dictator, as he initiated the war itself.   On the other hand, Stalin merely tolerated Hitler’s aggression.   Though the Sovi et Union had made an alliance with Germany, this did not guarantee immunity from the said aggression (Weinberg, 2008).Stalin and the rest of the Soviet Union were alarmed when Germans attacked them (Knight, 2008).   It became evident that Germany was in the center of the war, since it began to bypass the authority of the nations it had alliances with.Eventually, it was proven that Hitler had a more dominant political role in the war than Stalin.   Stalin was a mere participant in the German aggression; in time, he and his country became the victims.   It was Hitler who was in control of the war situation.Adolf Hitler and Joseph Stalin were dictators who took part in the aggression during the 1930s, resulting in the historical event known as World War II.Their aggression was both motivated by a sense of superiority, and their strategy included the participation in the war.   Nonetheless, there was a difference between the leaders.   Hitler had a more dominant political role in the war, since he started the international conflict.   He was powerful enough to undermine an alliance with the Soviet Union to further his ends.Meanwhile, Stalin’s aggression was only evident in the agreement with Germany.   Hence, Adolf Hitler had a bigger political role in the Second World War.ReferencesPerry, M. (1989). A History of the World.   Massachusetts: Houghton Mifflin.Knight, A. (2008). Joseph Stalin. In Microsoft Encarta Online Dictionary. Retrieved December 18, 2008, from http://encarta.msn.com/encyclopedia_761559200/Stalin.htmlWeinberg, G. (2008). Adolf Hitler. In Microsoft Encarta Online Dictionary. Retrieved December 18, 2008, from http://encarta.msn.com/encyclopedia_761556540/Hitler.html

External Analysis of Kraft Foods Essay

Kraft is the number one manufacturer of snacks in the U. S. and the world’s number two food company (Kraft Foods SWOT analysis, n.d.). Our goal is to maintain and improve those statistics. Results of the Porter’s 5-Forces There is a low threat of entry of new manufacturers. The food industry is already glutted with companies who rival Kraft. ConAgra ($11.62B revenues in 2012), and Nestle ($93.06B) represent the top across-the-board rivals. The Kellogg Company (13.65B) also holds 34.2% of the cereal market (Kraft Annual Report, 12/31/2011). There is a low availability of substitutes. The devastating drought in the U. S. has caused enormous drops in the supply of crops and animals. With diminished supplies when demand is high, suppliers bargaining power is also medium to high. Poor economic conditions coupled with heightened sensitivity to nutritional values have given customers a medium bargaining power (Lempert, P., 12/21/12). Results of the PEST analysis Political unrest in Egypt forced Kraft to suspend operations there (IUF newsier 2012). Likewise, the takeover of the Cadbury company and subsequent closing of the major plan in England have spawned much negativity toward Kraft (Chellel, Kit 5/23/2011). America’s middle class has shrunk by ten percent in the last 40 years and unemployment means consumers are being very cautious with how they spend their money (Lempert, P., 12/21/12). Shopping trends are focusing on health concerns and especially obesity (Kraft Foods SWOT analysis, n.d.). Over the net grocery shopping is becoming more popular (Lempert, P., 12/21/2012). With the advent of Facebook and Twitter, jilted employees, their families, and others who perceive unfairness dramatically weaken a company’s revenues with a few keystrokes. (Kraft Annual Report 10K 12/31/2011). Opportunities and Recommendations Kraft has the opportunity to re-configure marketing and packaging to tap further into the huge health and wellness market. They can educate the public about the advantages of healthy snacks. Kraft should promote the use of different individual pre-packaged and/or frozen items to make or supplement meals as opposed to buying a whole dinner. The consumer can be educated about the nutrition and time savings associated with a-la-carte items which can be used in conjunction with or in addition to a main dish. Kraft has the opportunity to re-examine the proteins in their products. Because of diminished supply of meat, alternate protein sources should be investigated. I feel the greatest concern right now is regaining and maintaining the Kraft name and reputation. It is imperative to keep the Kraft brand associated with good foods and healthy snacks. By implementing these changes, the company can go forward with even better bottom line results. INTRODUCTION In this report, I have analyzed the effects of Porter’s 5 forces upon Kraft Foods Industry. I have documented sources to validate those effects. The information presented is the latest available. I have also done a PEST analysis using the information gleaned from the previous sources as well as other references. I have given impressions concerning Kraft Foods Company from both an internal and external viewpoint. In conclusion, the recommendations for the company should result in better overall performance. Porter’s Five Forces Threat of Entry (low) There is a limited threat that more manufacturers will start up in the food industry. It is cost prohibitive pursuant to start up, marketing, advertising, and building brand loyalty. There are a sufficient number of competitors for Kraft Foods already. Especially at this economical slow down, no formidable threats seem likely (Food Retailing Industry, 2012). Rivalry (high) Kraft Foods has a high degree of competition rivals. ConAgra ($11.62B revenues in 2012), and Nestle ($93.06B) represent the most across-the-board rivals. Other peer groups with partial product competition and their 2011 revenues include: âž ¢ Campbell Soup Company (7.88B) âž ¢ The Coca-Cola Company(47.60B) âž ¢ General Mills, Inc.(17.12B) âž ¢ H.J. Heinz Company (11.62B) âž ¢ Hershey Foods Corporation(6.64B) âž ¢ Kellogg Company (13.65B) which also holds 34.2% of the cereal market, âž ¢ PepsiCo, Inc.(65.70B), and âž ¢ Unilever N.V. Hillshire (4.09B). (Kraft Annual Report 12/2011) (Morningstar KRFT competitors 2011). Substitutes (low) Kraft is the number one manufacturer of snacks in the U. S. and the world’s number two food company (Kraft Foods SWOT analysis, n.d.). Growing your own, buying fresh foods, and eating out would be alternatives to Kraft’s processed foods. For most consumers, time and money constraints would preclude these alternatives. Because of the slow economy and high rate of unemployment, many consumers are turning to home cooked meals rather than buying a complete processed meal (Reports, Statistics and Analysis (2/2/12). Bargaining Power of Suppliers (medium to high) According to Phil Lempert, the supermarket guru, the devastation of the drought in the United States in 2012 has caused exponential upsets in the food industry. There were enormous losses of both crops and animals. Because of this situation, suppliers have less produce and can demand higher prices. Higher prices of groceries have forced the consumer to take note of how much food is being wasted. They are investing those grocery dollars in good snacks and healthy meals (Lempert, P., 12/21/12). Bargaining Power of Customers (medium) Poor economic conditions have necessitated smarter use of grocery dollars. The grocery shopper wants quality products for a reasonable price. Pre-packaged whole meals have given way to more home cooking (Reports, Statistics and Analysis 2/2/12). Improved technology is adding to the clout that customers have. Baby boomers and millennials are using apps to search out similar products at better prices. Health concerns mean consumers are reading labels and demanding to know where their food comes from. (Food Retailing Industry 2012). There is little involved for the consumer in switching brand loyalty. Customers are commanding a heftier share of bargaining power than previously because of instant information about prices and alternatives. PEST Political In 2011, political upheaval in Egypt forced Kraft to suspend operations there. Of the 300 workers, 250 had joined to form a Union. In 2012, the new government instituted a social allowance which Kraft refused to pay resulting in a 3-day sit-in. Kraft fired five board members hoping to eliminate the union. This has caused much negativity toward Kraft. (IUF newswire 2012). Kraft Foods bought out Cadbury and executed some perfectly legal but questionable tactics in doing so. The takeover and subsequent closing of one of the main factories in England left many people with anger and bitterness against Kraft (Chellel, K., May 23, 2011). Both of these incidents give a glimpse into how inner company workings become front-page news. Government and political entities necessarily interact with corporations all the time but when the reputation of the company is damaged, it takes a long time to recover. Economic Environment The worst U. S. drought in 50 years has caused a significantly reduced supply of raw products. America’s middle class has shrunk by ten percent in the last 40 years and unemployment means consumers are being very cautious with how they spend their money (Lempert, P., 12/21/12). The world economy is also in a down slope. Sociocultural Environment The public demands for healthier foods and snacks has increased. Baby boomers and millennials (those born between 1982 and 2004) want better control of what they eat, where it came from and its nutritional value. They are more health conscious than any other generations of peoples. People in general are focusing on health concerns and especially obesity (Kraft Foods SWOT analysis, n.d.). With high unemployment and decreased disposable income, cooking at home has replaced purchasing whole meal packages (Lempert, P. 12/21/2012). Technological Environment Technology, especially the internet, has radically changed the lives of everyone. Today’s consumer is constantly on the move and looking for ways to save time and money. Some of that may be achieved by utilization of an app that lets the consumer compare values and prices of similar products. Over the net grocery shopping is becoming more popular (Lempert, P., 12/21/2012). In Kraft’s 2011 Annual Report, they recognize the impact of social networks such as Facebook and Twitter. Even more damaging than public media, unhappy customers can breed negativity with rumors and innuendoes (Kraft Annual Report 10K 12/31/2011). Overall Impressions Concerning the Company’s Environment Opportunities The cost of grains and meat will be constantly rising forcing grocery prices up over the next few years. Coupled with the growing nutritional and health concerns, Kraft has the opportunity to re-configure marketing and packaging to tap further into the huge health and wellness market. They can educate the public about the advantages of healthy snacks. Because money is tight and many people are returning to home cooking, Kraft has an opportunity to promote the use of different individual pre-packaged and/or frozen items to make or supplement meals as opposed to buying a whole dinner. The consumer can be educated about the nutrition and time savings associated with a-la-carte items which can be used in conjunction with or in addition to a main dish. Kraft has the opportunity to re-examine the proteins in their products. Because of diminished supply of meat, alternate protein sources should be investigated. Threats The Cadbury debacle and the politically-based problems in Egypt have produced much negative press about Kraft. When the reputation of the company is damaged, it takes a long time to recover. Even though Kraft ranks high on the national and global storefronts, a tarnished reputation causes consumers to re-think brand loyalty. . Even more damaging than public media, unhappy customers can breed negativity with rumors and innuendoes. With the advent of Facebook and Twitter, jilted employees, their families, and others who perceive unfairness dramatically weaken a company’s revenues with a few keystrokes. Conclusion Kraft continues to be a leading snack and processed food corporation. I feel their greatest concern right now is regaining and maintaining their reputation. It is imperative to keep the Kraft brand recognition associated with good foods and healthy snacks. By implementing these changes, the company can go forward with even better bottom line results. REFERENCES Chellel, Kit (5/23/2011) eFinancial News. Kraft vs. Cadbury: A bittersweet deal. Retrieved 2/3/13 from http://www.efinancialnews.com/story/2011-05-23/kraft-cadbury-bittersweet-deal. External analysis for Kraft Foods, (June, 2011) Retrieved 2/4/13 from https://docs.google.com/document/d/19liGjGKT76-tSjr_lz1M47bLd99BDFBJlSvHv5BYhzw/preview IUF newsier (2012) Kraft Egypt removes union leaders who called

Bel Implex Nigeria Limited Management - 1821 Words

PART TWO 2.1 BRIEF OVERVIEW OF BEL IMPLEX NIGERIA LIMITED Bel Implex Limited, the converting arm of Bel Papyrus Limited, the group’s paper mill operation was incorporated by Group Boulos in 2001. Bel Implex is equipped with the best European converting machines. However, Bel is currently producing and distributing several lines and sub-brands of tissue paper such as: facial tissue, toilet tissue, baby wipes, table napkins, kitchen towel, handkerchiefs and diapers. Due to the quality of its products, Bel has maintained an eminent reputation and its market shares grew constantly and steadily over the past years through an efficient distribution network’s everlasting commitment to fulfil the customer’s needs and meet their every expectation. Nevertheless, in order for Bel to increase their shareholders’ worth by creating exchanges that satisfy the objectives of shareholders, the German market in the EU would be the right market for growth expansion and would also position the firm to optimise value creation (Hollensen, 2007). However, the rationale behind this choice of country is due to the fact that customers in Germany are very careful about hygiene compared to some of the Asian and African countries that have other alternatives like water (Euromonitor, 2012).It is also assumed that, like the UK, many of the products in the disposable paper market are considered to be essential by German consumers. Also it assumed that the Germans consume 13.7kg of tissue per year