Organisational Behaviour and Human Resource Management Southwest Research Paper

Organisational Behaviour and Human Resource Management Southwest Airlines - Research Paper Example Southwest Airlines is a well known name in the American aviation industry. It is the largest domestic carrier in United States operating more than 3000 flights a day. The company is a huge success story due to its record continuous profits, even in years when other airlines were suffering. The company was founded in 1971 and since 1973 to 2003 the company never recorded an annual loss. This strong financial record has forced management gurus to study the company in detail in order to understand the factors behind its success. Southwest Airlines only flies within United States and even then the company has done extremely well over the past three and a half decades. The friendly organizational culture of the company may be one of the reasons behind this tremendous success. In this report Southwest Airlines will be discussed in great details and a thorough SWOT analysis will be conducted. Organizational behavior and leadership within the company will be discussed alongside with human re source management issues. Details of organizational culture and structure will also be included in the report. In the end future directions of the company will be analyzed and discussion will be made on how it will try to launch its operations globally. Recommendations will also be made at the end. Background Southwest Airline has always used a strategy that is not widely practiced in the aviation industry. The company uses cost leadership approach in its business operations. Since its inception the company has targeted shorter routes and has tried to fly more flights between cities. Due to this approach Southwest Airline has been successful in gaining a significant market share in the country. The company has been successful in lowering costs to an amazingly low level and by doing this it has knocked out its competitors (Bunz & Maes, 1998). With very low fare it is a first choice of cost conscious frequent travelers. The company uses a variety of techniques to lower its costs down and maintains profitability by utilizing its resources in an efficient manner. An example would be the plane of Southwest Airlines where there is no first class seating available. All the seats are labeled economy class because it allows more seats in the plane. This is one example of how lower costs is achieved by South West Airlines. Southwest Airline has also achieved success because of its inspirational leadership. The CEO of the company for a long time was Herb Kelleher. His charismatic leadership is one of the major reasons why the company did well for a long time (Gibson & Blackwell, 1999). The business strategy of the company has been of lowering costs and increasing efficiency, and charismatic leadership blends well with such a strategy. The organizational culture of the company is also commendable. Southwest Airline has a very friendly culture and employees are encouraged to take initiatives. Employees are also treated in a good manner and this is what motivates them to wo rk hard. Workers of the company are a major reason why company has always been successful even in tough economic times. Employees are given power to take decisions and this is why they are able to come up with innovative ideas and this helps the company at the grass root level. The company only flies short routes with United States and it

Global Strategy and Local Needs in the Luxury Car Market Essay Example for Free

Global Strategy and Local Needs in the Luxury Car Market Essay 1 Introduction Since the 1980’s researchers have been trying to understand what globalization is and how competitive advantage can be gained out of it. This study will look at this movement with a critical eye and reflect whether or not it is sometimes better to give local needs priority in management decisions. The purpose of this study is to analyse whether the â€Å"Global strategy, but local needs† assumption leads to success. The objective is to provide scientific evidence for this strategy, analyse different organizations’ strategies and provide a possible recommendation for the best practice. Globalization is a driver of luxury 1 but it is not the best solution to apply this approach in all strategic decisions. This paper will not only look at this strategic approach in general, but will try to focus in specific on the luxury car market. The luxury segment is a fascinating subject for scientific research, because it still provides possibilities for relatively fundamental research within its niche. 2 Although there is considerable literature about specific brands, there is a lack of systematic and scholarly work that analyses the luxury car phenomenon itself. 3 The importance of this segment has also been emphasized in Sergio Marchionne’s recent speech to the shareholders (appendix 7. 2). The CEO of the Fiat S. p. a and of the Chrysler Group LLC underlined that his strategy for the future of the Group is located in the premium4 car production. 5 The motivation of this paper therefore is to analyse the challenge Maserati will have to address and to arrive to some practicable conclusions. 1 Cf. Kapferer/Bastien 2012, p. 12. 2 Cf. Heine 2012, p. 6. 3 Cf. Berger 2001, p. 160. 4. Expression intentionally quoted to illustrate a later explained statement 5 Cf. Fiat S. p. a. 2012b. Definition and terminology 1. 1 2 Methodology The findings of this project are derived from primary, secondary and tertiary sources of information. The tertiary source was mainly the catalogue of the Deutsche Nationalbibliothek in Frankfurt. Another important part of the data collection contributed the Internet. Most data has been found with the search engine google. com and scholar. google. com and the homepages of the relative brands mentioned in the project. The biggest part of the project’s information was taken out of secondary sources such as textbooks, newspapers and specific literature. Finally, the annual reports of 2011 of selected brands have been consulted. 2 Definition and terminology 2. 1 Strategy â€Å"†¦ Strategy in corporate practice is an integrated concept with the objective of ensuring long-term survival in active interaction with the competition †¦Ã¢â‚¬ 6 In today’s everyday changing business environment all companies are forced to reassess their strategies, their structures and their processes regularly. But the answers to every strategic and organizational challenge is varying among industries. 7 Therefore first a summary of different general strategic alternatives will be presented. Afterwards a detailed analysis of the characteristic strategy in the luxury car market will be developed. 2. 2 Global or Local Strategy In this chapter both terms global and local strategy should be defined. Moreover the strategic challenge of a business to decide between both strategies should be analysed. 6 Cf. Kotler/Berger/Bickhoff 2010, p. 12. 7 Cf. Bartlett/ Ghoshal 1990, p. 17. Definition and terminology 3 Businesses have been international since ancient times and at its beginnings international business had simply the form of exporting and importing. Any business that carries out some of its activities across national boundaries can be defined as an international business. 8 In the 70s and 80s keywords as standardization, rationalization and centralization marked the new tendency towards globalization. 9 Globalization is a term that emerged in the 1980s/90s10 and that has become a buzzword in the 1990s. 11 Originally globalization was only an economic phenomenon that described the integration and merger of national economies, and the development of communication and production of knowledge, transportation and migration. 12 Today the extent to which the organization’s activities are spread across geographical regions has become a major consideration in the implementation of an organizations strategy. 13 A global strategy is the tendency of a company to a consistent strategy and adaptation to local circumstances become redundant. Global organizations gain competitive advantage overcoming national and continental boundaries. Therefore it was a widely held belief that there was the risk that the globalization would overrun all regional and national differences. 14 Though today we have evidence that there is no â€Å"global village† and that regional and national differences cannot be so easily neglected. On the contrary the majority of the apparently global organizations use local differences to gain competitive advantage. 15 Therefore numerous literature and research on the counter-rotating trend to globalization, the so-called localization, can be found. Localization in general means the adaptation to or consideration of local market conditions. Most of the research concluded that the two apparently contrary concepts do not mutually exclude but depend on one another: â€Å"Globalization can mean the reinforcement of 8 Cf. Campbell/Stonehouse/Houston 2002, p. 255. 9 Cf. Bartlett/Ghoshal 1990, p. 36. 10 Cf. Lohmeier 2008, p. 9. 11 Cf. Rohm 2010, p. 4. 12 Cf. Lohmeier 2008, p. 9. 13 Cf. Campbell/Stonehouse/Houston 2002, p. 254. 14 Cf. Lohmeier 2008, p. 10 15 Cf. Lohmeier 2008, p. 58. 4 Definition and terminology or go together with localism as in ‘Think globally, act locally’†¦Ã¢â‚¬  16 . Numerous literatures even deduce a new concept called â€Å"Glocalization. † Glocal strategies are strategies that provide evidence to global and local players, to respond advantageous and purposeful to globalization. They should assist global players to localize their activities where worthwhile and show ways and means to local players to make use of the global area respectively in both cases without abandoning their global or local character. 17 2. 3 Bartlett’s and Ghoshal’s model According to Bartlett and Ghoshal there are three traditional strategic directions a company can follow. Tab. 1: The three strategic directions 18 Multinational Global International Strong local presence Cost reduction through Usage of knowledge and through respect of national centralized but worldwide competences of the HQ needs oriented activities through worldwide diffusion and adaptation 2. 4 The multinational organization The multinational organization according to Bartlett and Ghoshal is the archetype of the organization. At the beginning of the 1900th century this was the most diffused organizational model. As shown in figure 1 in the multinational organizational model the HQ is at the centre with many decentralized, interdependent and autonomous branches surrounding it. The specific needs of the local markets are encouraged and therefore they are able to react to local needs. Historically this organizational model was the one of many European companies that expanded into foreign countries. Several of these companies originally where family owned companies. Processes were based on personal relationship and 16 Cf. Pieterse 1995, p. 49 zitiert nach Lohmeier 2008,p. 53. 17 Cf. Lohmeier 2008, p. 64. 18 Cf. Bartlett/ Ghoshal 1990, p. 32. 5 Definition and terminology informal contacts rather than formal structures and systems. Therefore only elementary financial control was necessary. 19 Branch Decentralized federation: Many key assets, responsibilities and decisions are decentralized Branch Branch HQ Branch Personal control: Informal HQ – subsidiary relationship, simple financial control Branch Multinational mentality: Management considers overseas operations as portfolio of interdependant business. Branch Figure 1: Multinational organization 20 2. 4. 1 The international organization This organizational model has similarities to the multinational organization. However as shown in figure 2 the branches are more dependent on the transfer of information and knowledge from the HQ. The objective of this kind of organization is to transfer knowledge and competences in aspects such as technology or marketing to underdeveloped foreign branches. The national branches can adapt products or strategies, while the HQ determines innovation and processes. In comparison to the multinational organization model there is more systematization and control. According to Bartlett and Ghoshal the international organization model had its breakthrough in the post-war period. The international organizational model is the model for the typical American Management culture of empowerment and delegation. 19 Cf. Bartlett/Ghosal 1990, p. 73. 20 Cf. Bartlett/Ghosal 1990, p. 74. 6 Definition and terminology Branch Branch Coordinated federation: Many assets, resources, responsibilities and decisions are decentralized but controlled by HQ Branch Branch HQ International mentality: Management considers overseas operations as appendix to a central domestic corporation Branch Administrative control: formal management planningand control systems allow higher HQ-subsidiary linkage. Branch Figure 2: International organization 21 2. 4. 2 The global organization Global companies develop their products and strategies considering only one equal worldwide market. Product development, production and marketing strategies remain centralized. 22 As shown in figure 3 the most important characteristics of the classical global organization have HQs that are a centralized hub that severely controls the branches and a management-mentality that views the world as one economic entity. The main feature is the centralization of assets, resources and competences. The function of branches is reduced to sales and services. In some cases financial competitive advantage is gained outsourcing the production sites abroad. Compared to the multinational and international organizations the branches in global organizations have less power to develop or modify new products and strategies. Managers in global organization, especially those located in HQ, often are more concentrated on the global market and consider the market to be equal worldwide. They have no comprehension of the local needs because there is no exchange of information between HQ and the national branches. 23 21 Cf. Bartlett/Ghoshal 1990, p 77. 22 Cf. Bartlett/Ghosal 1990, p. 31. 23 Cf. Bartlett/Ghoshal 1990, p. 75 f. 7 Definition and terminology Internationalization pioneers like Henry Ford build up their production plant according to this model and the Japanese started their offensive in the 70s and 80s with this model. 24 Normally global organizations first where very successful in their home market and used this success then to expand internationally. 25 Branch Branch Centralized hub: Most of the strategic assets, resources, responsibilities and decisions centralized Branch HQ. Branch Operational control: Tight control of decisions, resources and information through HQ Branch Global mentality: Management considers overseas operations as channels for the supply to a unified global market Branch Figure 3: Global organization 26 2. 4. 3 The transnational strategy Bartlett and Ghoshal claim that the traditional directions do note lead to adequate results anymore. Global and international organizations look out for a centralized answer to a worldwide market opportunity. Multinational companies search local solutions. Therefore Bartlett and Ghoshal developed the assumption for a new approach to solve the challenge of increased competitive and changing environment: The transnational strategy. 27 Companies nowadays can only survive in the competitive environment if they succeed in developing simultaneously worldwide competitiveness, multinational 24 Cf. Bartlett/Ghoshal 1990, p. 75. 25 Cf. Bartlett/Ghoshal 1990, p. 31. 26 Cf. Bartlett/Ghoshal 1990, p. 77. 27 Cf. Bartlett/Ghoshal 1990, p. 33 and p. 90. Definition and terminology 8 flexibility and global learning capabilities. These are the main elements of the transnational model. 28. The transnational model is a symbiosis or rather compromise of the other three traditional strategic directions. It combines both kind of competitive advantages: Because the affiliations are seen as strategic partners they can better respond to local needs and global synergies can be positive side effects. In the transnational model local markets are respected, and the proximity to the market is mainly an instrument to react more flexibly on a global scale. 29 The distinction between multinational and transnational companies is the amount to which the HQs are directly involved in the management of the branches. While a transnational company often has a strategic centre that manages to a high degree all the global operations a multinational company does not coordinate directly its foreign activities but rather considers the branches as interdependent business. The transnational organization acknowledges that there are certain resources and competences such as finance or research and development that are better centralized in the HQ while other resources are more advantageous to be decentralized in the markets to spread the competences on a global level. 30 2. 5 The Luxury Concept and Definition. The concept of luxury is known since ancient times. Lucullus, a roman senator who was famous in the ancient Rome for his marvellous evening events and his love for beauty, delicacies and sensorial pleasures, can be considered inventor of the luxury concept. 31 Chevalier and Mazzalovo provide a definition as follows: A luxury brand is selective and exclusive and provides an additional creative and emotional value for the consumer. It is a brand that is giving the desirable attribute of being scarce, sophisticated and in good taste. It also has a slightly understated and aristocratic attribute. 32 28 Cf. Bartlett/Ghoshal 1990, p. 33. 29 Cf. Bartlett/Ghoshal 1990, p. 84 30 Cf. Bartlett/Ghoshal 1990, p. 84. 31 Cf. Heine 2012, p. 2. 32 Cf. Chevalier/Mazzalovo 2008, p. viii Definition and terminology 9 According to Kapferer and Bastien a luxury brand can be defined by six criteria:33 †¢ An extremely hedonistic experience or product †¢ The price is exceedingly higher compared to the functional value †¢ Tied to a tradition, exclusive expertise and culture ascribed to the brand †¢ Accessible only through controlled and restrained distribution †¢ Obtainable with tailored supplementary services. †¢ Indicating a social representation, making the holder or beneficiary feel special and privileged 2. 6 Luxury versus premium car market The concept of luxury is represented in numerous sectors of activities 34. In this study we will look into more details of the specifics of the automobiles luxury sector. According to Chevalier and Mazzalovo luxury automobiles are â€Å"those cars that consumer perceive as being very special and different from the others. †35 It is necessary to differentiate between the concept of luxury and the concept of premium. The term luxury vehicle suggests a vehicle with a higher quality equipment, better performance, particularly precise construction, comfort, higher design, technologically innovative, and features that transfer an image, brand, status or prestige. Often the image is strongly related to the country of origin of the product. Premium products are upper-range branded products with an increased price without the emotional characteristics like hedonism or myth. „Upper premium brands remain comparative, whereas luxury is superlative. â€Å"36 Suitable examples for this difference can be found in the car industry. While an Audi A6 or A8 are super-premium cars because of the excellent usage value they provide, an Aston Martin or a Lamborghini are luxury cars because of their rarity and the prestige of the name. 37 33 Cf. Kapferer/Bastien 2012, p. 47. 34 Sectors of activities of luxury: Ready-to-wear cloth, jewelry and watches, perfumes and cosmetics, fashion accessories, wines and spirits, automobiles, hotels, tourism and private banking. 35 Cf. Chevalier/Mazzalovo 2008, p. x. 36 Cf. Kapferer/Bastien 2012, p. 43f. ; Cf. Kapferer/Bastien 2012, p. 53. 37 Cf. Kapferer/Bastien 2012, p. 53. 10 Strategic examples One historic management error that underlines the difference between luxury and premium is the Jaguar case. When Ford acquired Jaguar in 1989 they invested a lot in technology and training of the Jaguar employees. Thanks to common platforms with Ford they tried to sell small Jaguars. But this strategy seriously damaged the image of Jaguar and loosing the feeling of exclusivity they lost the luxury status. 38 3 Strategic examples In this chapter the before described theoretic information should be put together into a strategic framework. The strategic examples that will be considered are the most successful competitors of Maserati in terms unit sales: Porsche, Audi, Mercedes and BMW (figure 4). The first step was to obtain an overview of the structure of these companies and to identify their dependencies among each other and with other organizations (appendix 7. 3). The second step was to identify certain characteristics of these organizations and to put them into a framework developed to identify their degree of globalization or localization (appendix 7. 4). Based on this information a picture of their strategic directions has been deduced (appendix 7. 5). Bentley 2,57% Audi 6,56% Maserati 1,81% Jaguar 3,06% Maserati Market 2012 Aston Martin 1,74% Ferrari 1,26% Lexus 0,09% Porsche 48,43% BMW 12,23% Mercedes-Benz 22,25% Figure 4 The Maserati market in Germany in 2012 (market shares) 38 Cf. Kapferer/Bastien 2012, p. 51. 39 Management Services Helwig Smitt GmbH, Hofgeismar. 39 Strategic examples 3. 1 11 Daimler AG Gottlieb Daimler and Carl Benz invented the automobile in 1886. 40 Today the Daimler Group integrates different car manufacturers such as Mercedes-Benz, Smart and Maybach. Cooperating with various organizations worldwide it has converted from a mainly domestically oriented exporting company to a globally operating one. The company is now well established not only in Europe but also in Brazil and Argentina and has established joint ventures also in China. 41 However for the Daimler Group â€Å"the cultural inertia has been difficult to overcome, and global pretensions and traditional German attachments form a contradictory and unstable mix. †42 Therefore it is difficult to classify the group to Bartlett and Ghoshals model. The Daimler AG is rather a combination between the multinational and the global organization. Mercedes-Benz being historically strongly connected to its German roots has a centralized HQ, but at the same time its business units have been made self-responsible profit centres and procurement of materials is globally coordinated for each group of materials. Furthermore this has been intensified through local settlement of direct production, more consultancies and engineering in the branches, and also some development tasks located outside Germany. 43. Daimler is relocating its production sites into emerging markets, as for example the recently opened site in Hungary. This trend can be underlined by its decreasing production figures in Europe. They are currently reducing their production in Sindelfingen. 44 3. 2 BMW AG The BMW group may be the most German focused of the three companies. It is globalized in its objectives rather than in its activities. 45 Approximately 60% of the production of BMW is still located in Germany (figure 5). However BMW is one of 40 Cf. Daimler AG 2012, p. 4. 41 Cf. Lane 2001, p. 84. 42 Cf. Lane 2001, p. 85 43 Cf. Lane 2011, p. 84f. 44 Cf. Berens 2012, p. 17 45 Cf. Lane 2011, p. 86. 12 Strategic examples the most respected brands in the world. The explanations for BMW’s success are a strong brand character, a stable, family shareholding and a very German business philosophy. 46 It can be deduced that having local roots increases the perceived value of BMW. Producing nearly all its automobiles in Germany customers perceive BMW as an authentic product of German culture. BMW follows the same strategy of keeping the Mini production in England. 47 South Africa, 3,06% China, 5,65% Austria, 5,91% CKD, 2,16% UK, 11,23% US, 15,88% Germany, 56,11% Figure 5: Vehicle production of the BMW Group in the world in 2011 48 Therefore BMW can be classified an international organization according to Bartlett and Ghoshal’s model. BMW’s key competences are centralized but many other competences are decentralized. Thus BMW efficaciously implements the strategy of local assembling and local purchasing in countries with high customs duties on imports such as Russia, Thailand or India. However, under the terms of the distinction between luxury and premium products, the cars assembled in Thailand would not longer be defined as luxury products. They do serve to initiate customers into the brand, who then should develop the desire to purchase a ‘real’ BMW ‘made in Germany’. 49 BMW’s Management Meeting Place is a good example for the acquisition of knowledge in the HQ and then transferring it to the branches. First this discussion platform has been started in Germany and then it was transferred to locations abroad. The fact that this strategy works, and that behind BMW probably stands a 46 Cf. Kapferer/Bastien 2012, p. 67. 47 Cf. Kapferer/Bastien 2012, p. 78. 48 Cf. BMW AG 2012, p. 28. 49 Cf. Kapferer/Bastien 2012, p. 78. 13 Strategic examples strong team is underlined by the fact that BMW has been rewarded being â€Å"The World’s Most Attractive Employer† by a study conduced lately. In fact the employee attrition ratio at BMW has decreased continuously in the last 3 years (figure 6). 5,85 percentage of workforce 6,00 4,59 5,00 4,00 2,74 2,66 2,16 3,00 2,00 1,00 0,00 2007 2008 2009 2010 2011. Figure 6: Employee attrition ratio at BMW AG 3. 3 50 Volkswagen AG The Volkswagen Group maybe is the most advanced example of a conglomerate of successful car manufacturers. Among all the subsidiary brands the most significant ones are Volkswagen AG, Audi AG and Porsche AG, but there are also Bentley, Lamborghini, Seat and Skoda (appendix 7. 3). In fact Porsche owns 32,5% of the Volkswagen Group shares. Succeeding in managing a portfolio of so dissimilar organizations under one umbrella certainly makes the Volkswagen Group to a transnational organization according to Bartlett and Ghoshal. The cooperation in-between the brands of the Volkswagen Group are very well developed. One successful example of this approach is the common hybrid drive used in the Porsche Panamera, Cayenne and VW Touareg 51 . In addition the Volkswagen group has only little external cooperation mainly in the area of researching. The key competences remain inside the group. Becoming an integrated automotive industry is part of the group’s â€Å"Strategy 2018†. However, every single brand has its specific targets. Volkswagen’s target is to 50 Cf. BMW AG 2012, p. 39. 51 Cf. Porsche AG 2012, p. 67. The Maserati case 14 become the global market leader by 201852. This underlines the global factor. On the other side Porsche’s target is to become â€Å"the leader of exclusive sports cars manufacturers†53. Audi finally has the target to become the â€Å"premium brand that delights customers worldwide† 54 . Therefore the group’s values and capabilities remain inside the group and with a broad portfolio of interdependent and specialized brands completely different target groups can be addressed. The Volkswagen Group leads the global tendencies of the considered companies. But the core strategic functions (e. g. RD and design) remain mainly German. However the Volkswagen Group also recognizes the importance of knowing the local sources and therefore has implemented the C3-Sourcing program. Becoming technical, organizational and social laboratories foreign branches contribute to the integration of the whole group’s worldwide activities. Hence some Audi models that have the same platform as Volkswagen models are now produced in Volkswagen factories in China. This local adaptation is the key of success for Audi’s sales in China, where the top members of the communist party cannot own a car unless it is made in China, but at the same time it forces the brand to give up their luxury strategy and replace it with a premium one. 4 The Maserati case 4. 1 Introduction to Maserati The Italian sports cars producer with the trident on the logo has been founded as Societa Anonima Officine Alfieri Maserati on December 1st 1914 in Bologna. Maserati was originally founded as a family business, but in 1937 it was sold to the Orsi family. In 1968 it was sold to Citroen and finally became part of the Fiat Group in 1993. 55 Thanks to his big sister Ferrari, Maserati has been reconstructed and from 2006 stands alone now in the structure of the Fiat S. p. a. (see figure 7). Today Maserati’s headquarter is based in Modena and it has two production sites in the north of Italy. Furthermore Maserati is divided in regions (Europe, Asia Pacific, 52 Cf. Volkswagen AG 2012, p. 233. 53 Cf. Porsche AG 2012, p. 14. 54 Cf. Audi AG 2012, p . 131. 55 Cf. Wikipedia 2012a. 15 The Maserati case. America and Middle East) with national branches in each separate country (e. g. France, Germany, United Kingdom). Maserati is currently becoming more and more significant for the rest of the Fiat Group. The first strategic milestone of the so-called â€Å"2010-2014 plan† was the integration of the Chrysler Group in June 2011. Figure 8 shows the increase of 30% of the workforce through this merger, mainly in North America. * including 58,5% Chrysler Group LLC Maserati (100%) Fiat Group Automobiles* (100%) AUTOMOBILES Fiat S. p. a. Ferrari (90%) Fiat Powertrain (100%) Magneti Marelli (100%). COMPONENTS PRODUCTION SYSTEMS Teksid (84,8%) Comau (100%) Figure 7: Structure of the Fiat S. p. a. Workforce 80 62,583 63,214 60 40 2011 2010 60,336 44,668 24,616 23,596 20 56 39,498 5,579 0 5,838 Italy Europe (excl. Italy) NAFTA Mercosur 4,894 other regions Figure 8: Increase of the workforce in the Fiat Group through the integration of Chrysler in 2011 56 Cf. Fiat S. p. a. 2011, p. 11. 57 Cf. Fiat S. p. a. 2012c, p. 30. 57 The Maserati case 16 The second milestone was the plan presented in February 2011 in which â‚ ¬ 500 million were invested for the relaunch a production site58. In this new pIant two new models will be produced: The new Maserati Quattroporte by the end of 2012 and the Maserati Ghibli in the second half of the year 2013. 59 Thereby Maserati plans to increase its sales: While in 2011 Maserati sold 6,159 vehicles worldwide, in 2013 20,000 units are planed and by 2015 a growth up until to 50,000 vehicles per year is projected. 60 The Maserati S. p. a. can be classified as a global organization. They concentrate their decision and strategy making in the HQ in Italy and product development, production and marketing strategies remain centralized. The function of the branches is reduced to the implementation and realization of sales, services and marketing activities. The reason is linked to the strong connection with the domestic country and the patriarchal organizational culture that has developed over the years. One cultural example for this approach is that usually in the branches employees refer to the HQ as â€Å"the factory†. And while until today Maserati’s production sites are located just in the domestic market, by the use of a common platform and production site with the Jeep Grand Cherokee in the United States for the new SUV model, Maserati will enter also in the global environment. 4. 2 Maserati’s strength 4. 2. 1 The cooperation with the Fiat Group Being part of the Fiat Group is strength and weakness at the same time for Maserati. Through the cooperation with the other brands of the group, Maserati can benefit from economies of scale and scope. E. g. particular engines for Maserati are developed and produced in the production site of Ferrari. Another example is the collaboration with Jeep that will allow the new Maserati Levante to share the expertise of Jeep in building SUVs. 61 Moreover the fact that the production of this new Model will be relocated to the United States will finally transform Maserati from a purely domestic manufacturer to a global player. 58 Officine Automobilitische Grugliasco. 59 Cf. Fiat S. p. a. 2012c, p. 34. 60 Cf. Wehner 2012. 61 Cf. Baedecker 2012. The Maserati case 17 4. 2. 2 The luxury image Maserati as a brand itself and the Maserati products are stereotypes of luxury. Maserati is like none of its competitors a unique iconic and superlative brand that stands for an extravagant Italian lifestyle and sportiness. It profits from its long-time racing experience and expertise in building extremely performing engines. Additionally some parts are tailor made and its products are positioned in an upmarket pricing class that does not correlate with the functional value they provide. Moreover until today the units sold are rather restricted and therefore it is still a rarity to see a Maserati on the road. Thus possessing a Maserati is to a high degree socially representative and makes the owner feel special and privileged. Maserati is a myth and continuous to benefit from this legend. 4. 2. 3 Driving performance Another very strong characteristic of Maserati is its driving performance. Driving a Maserati is an overwhelming driving experience from the very first moment you switch on the engine. The expertise in building extremely performing engines is definitely a strength that should not be underestimated. „Hearing a Maseratis V-8 engine scream on the way to its 7200-rpm redline is an experience gear heads will cherish. â€Å"62 4. 2. 4 The people that work for Maserati The people that work for Maserati are fundamental assets. A mixture of experienced and long-established employees on the one side and on the other side young, motivated and talented staff are the most important ingredient for the team that is able to face the current challenges. Maserati’s employees identify with the brand to a high level and therefore live for the brand. E. g. in the HQs in Modena are hanging poster with the slogan â€Å"I am Maserati†. 62 Cf. Floraday 2011. The Maserati case 4. 3 18 Maserati’s weaknesses 4. 3. 1 The image of the Fiat Group As mentioned above, being connected to mass-market brands like Fiat and Chrylser could affect Maserati’s luxury status. This is primarily related to the image of Fiat’s quality standards. The fact that some components are commonly introduced in both, Maserati and Fiat, could severely damage Maserati’s reputation. 4. 3. 2 Progress and technology Except for its engines, Maserati is not using the most advanced technology in his cars until now. Competition from other car manufacturers is very strong in this context (e. g. Porsche or BMW). Therefore this is a threat especially in those markets where technology and innovation are very important factors in the consumer buying behaviour process (e. g. Russia or Germany). Moreover while other manufacturers have already developed new propulsive forces e. g. the new Daimler electric fleet63, Maserati continued only the evolution of traditional fuel and diesel engines. As the petrol price rises also this threat is increasing. And depending on the trend of the environmental regulations in Europe and in the rest of the world, this lack of development could become an increasing challenge for the next future of Maserati. 4. 3. 3 Dealer network Another threat is the necessity to improve and expand the dealer network. There is a clear need to increase the distribution capillarity by appointing additional dealers. Moreover, there is also a need to transform the existing dealers bringing them to focus their activities and organizations on the brand. Dedicated sales, after-sales and marketing forces will be key to this transformation. E. g. most of the Maserati dealers sell also Ferraris and should adapt their staff with personnel dedicated exclusively towards Maserati. 63 Cf. Daimler AG 2012, p. 41. The Maserati case 4. 4 19 Maserati’s opportunities 4. 4. 1 Industrial opportunities With its current models range (Quattroporte, Gran Cabrio and Gran Turismo) Maserati is represented in the core segments.

Visiting Beijing, China †Peking! Tourist destinations

Visiting Beijing, China – Peking! Tourist destinations Beijing – Peking! NÇ  hÇÅ ½o! (Hello in Mandarin) Beijing is the second largest city in China and is known for its culture, politics and education. Beijing in Chinese means ‘Northern Capital’ and was known by many other names in its earlier days. It has been the home for the Ming and Qing dynasties and is surrounded by hills. This city, which hosted the Olympics in 2008 has a population of over 20 million and is the most populous city in China. A lot of tourists visit this vibrant city to see the city of culture and relish the traditional food and tea. You will also be fascinated by its various temples, architecture, culture, and museums. While you are here, do ensure that you see the Great Wall of China, one of the wonders of the world. Best Season to Visit Beijing Beijing has a continental climate with hot and humid summers and cold winters. Summers are very hot, but this doesn’t deter the tourists from visiting the city. Spring in Beijing is dry and warm and you will see dust storms. Smog can be a huge challenge as well which is more during winters. You will also see snow in winters with temperatures going below -10 degrees. The best time to visit Beijing is in the months of September and October (Golden Autumn season). Highlights (Special things to do in Beijing) Visit the largest square in the world, the Tiananmen Square. Be amazed at seeing the Great Wall of China! Explore the Forbidden City (Palace Museum), which is a UNESCO Heritage Site. Learn about Peking man and ancient archeological discoveries at the Zhoukoudian Peking Man Site Museum. Visit the Lama Temple, which is the most traditional and magnificent among the numerous temples in the city and the best place to see the Tibetan traditions and prayers. Visit the interesting Bell and Drum Towers, which was used for time keeping in the earlier days. Visit the world famous National Stadiumalso known as the ‘Birds Nest’. Watch the theatre performances and acrobats that are unique and different from any other city in the world. Enjoy the sunset at Houhai Lake on a romantic boat ride with your loved one. Enjoy a peaceful leisure stroll at the Beihai Park. Explore the courtyard and streets of Hutong by walk or cycle rickshaw. Relish Beijing’s most famous Peking roast duck, lamb kebabs, candied haw berries at its restaurants or at the street shops. Experience visiting a Tea House, which has acrobatics and other folk performances at the tea ceremony. Relax at the end of your vacation with a Chinese massage with aromatherapy or shiatsu. Hotspots of Beijing Tiananmen Square: This is the largest square in the world and is one of the top things you have to see when in Beijing. The Square has numerous tourist attractions around it – Museum of the Chinese Revolution, Museum of the Chinese History, Great Hall of the People, Qianmen Gate, Monument to the Peoples Martyrs and several others. Great Wall of China: You can plan an afternoon to see one of the wonders of the world. You can see the ruins of the Great Wall, which was built by the Ming Dynasty. The Badaling stretch of the Great Wall with its beautiful landscapes is spectacular and will make you ponder how it was built in the earlier days. If you are fit, do attempt to trek at the Great Wall and make it an unforgettable experience. Forbidden City: Known as the Purple Forbidden City in Chinese, this is a UNESCO World Heritage Site and home of the Palace Museum. It has the largest collection of ancient wooden structures preserving historical findings about the Ming dynasty. The architecture and collection of paintings is marvelous here. Summer Palace: Located by the Kunming Lake and Longevity Hill, the summer palace is a UNESCO World Heritage Site. The Tower of Buddhist Incense is a prominent structure and can be seen from any part of the palace and garden. It is a popular tourist attraction for its architecture, gardens, bridges, temples and for the serenity around the palace. Beihai Park: This is the largest park in China. It is located by the lake and is famous for its numerous temples, structures and temples in the park. The highest point on the Jade Flower Island is the White Pagoda which is a prominent structure. Nine-Dragon Wall at the Five-Dragon Pavilions is famous across the country for its artistic paintings. There are several pavilions, temples and gardens inside the park which is a unique experience that you would like to see again. Beijing Zoo: The Beijing Zoo is popular for its adorable Pandas at the Panda Hall. The zoo has 16 exhibition halls with its most famous ones being the Panda Hall and the Gorilla Hall. The zoo has polar bears, giraffes, elephants, zebras, kangaroos, golden monkeys and various other animals. It is a perfect place for kids who will be fascinated and excited to see all the animals. Shopping in Beijing Beijing is known for its artistic craftsmen who create curios, silk, ivory carvings, pearl, jade and lacquer. You can shop for a lot of things in Beijing, which includes clothes, curios, jewelry, electronics, traditional silk printed items, artistic lacquer items and unique house decors. The popular shopping centers in the city are Xidan Commercial Street, Wangfujing Street, Hongqiao Pearl Market, Lufthansa Centre, Qianmen Street, Jade Factory and Silk Market. You must visit the Tea Street or Maliandao Tea City that have a large number of tea stores who stock an exceptionally high variety of tea. If you want to buy antiques then Panjiayuan Flea Market and Colored Glaze Factory are the places to visit. How to reach Beijing By Air – Beijing Capital International Airport (second largest airport in the world) is the main airport and caters to both international and domestic flights whereas Beijing Nanyuan Airport is a domestic airport. The airports are well connected with taxis and shuttles. Be careful about the taxi you take from the airport and make sure that the queue manager guides you to the right taxi. By Train – Beijing Railway Station is the main station; there 4 other stations – Beijing West Railway Station, Beijing East Railway Station, Beijing North Railway Station, Beijing South Railway Station and Huangcun Railway Station. The main station, West and South connect all major cities within the country, Russia and North Korea. The others are smaller stations with lesser scheduled trains. By Road – There are several expressways to Beijing which are very well maintained and easy to commute by car. There are National highways as well connecting other major cities within the country. By Bus – There are long distance buses to/from Mongolia and Shanghai. The city has over 20 bus stations connecting all cities within the country. There are sleeper buses, regular and express buses. You can also avail meal services if you pay additional charges. How to get around in Beijing Taxis are the best way to get around in the city and also the most convenient and easily available anywhere in the city. The taxis are comfortable cars and fares are reasonable. The minimum starting fare is  ¥ 13 for 3 kilometers and then additional  ¥2.3 per kilometer. The downside is that not all taxi drivers speak English and you could waste time in traffic jams. Black cabs are more expensive. If you hire a cab be prepared for traffic jam delays and complicated routes. Subways have good connectivity to all parts of the city; they have English markings and are faster to travel to any part of the city and cheaper. Buses are also cheap but crowded and only some buses announce the stop names in English; the bus stop boards are not in English. Beijing has excellent bike lanes on all major streets and offers a good way to explore the city. Minibuses are ideal for countryside travel. Top areas in Beijing Beijing City Centre – This is the main financial center of the city. Most of the finance and media companies operate from the skyscrapers in this vicinity. The view of the city center from the Beijing TV Centre at night is spectacular. Beijing CBD International Business Festival is the most famous festival held here. The real estate prices in the area have been on the rise in the last decade. Chaoyang – The area has Beijing’s Central Business District and is famous for its restaurants, shopping, nightlife and the tourist attractions – Chaoyang Park , Chinese Ethnic Culture Park , Happy Valley Amusement Park , Side Park, Dongyue Temple , National Stadium , National Indoor Stadium , Olympic Sports Center Stadium , Art Museum of the Beijing Fine Art Academy, Blue Zoo Beijing, China National Film Museum, Sports Museum, World Trade Center Tower III and numerous art galleries and theatres. Chaoyang has the maximum tourist attractions in the city and is always busy bustling with tourists. Dongcheng – The city’s most famous Tiananmen Square is located in Dongcheng and this is surrounded by numerous tourist attractions – museums, galleries, parks, theatres and shopping arcades. Poetry Cafà © located in the area is a unique cafà © with a lot of travel and photography information. Xicheng – This is part of the old city in Beijing and is home to many tourist attractions that are rich in history and traditional architecture. There are numerous temples and parks and also Qianmen, Beijing Zoo, Fayuan Temple, Huguang Guild Hall, Capital Museum, Beijing Zoo and Aquarium and several others. National Centre for the Performing Arts stands out for its architecture and is a must see place if you visit Beijing. Haidian – Located less than an hour from the center of the city is Haidian which is famous for its Summer Palace, Old Summer Palace, Five Pagoda Temple, Purple Bamboo Par, Beijing Botanical Gardens, Fragrant Hills, World Art Museum Millennium Monument and Haidian Theater. Haidian is also famous for its shopping at New Wudaokou Clothing Market, Wudaokou Clothing Market and Golden Resources Shopping Mall and for electronics at Dinghao and Hailong. There are several clubs here that have live music bands playing among which D 22 is most famous. Sculpting in Time, Propaganda and Lush are popular pubs in the vicinity. Wangfujing – This is the most famous area in the city for shopping. You will see tourists in the area only for shopping; majority of the people who reside in this area are locals. The area has high end homes with the Qing dynasty and other aristocrats residing in the vicinity hence the name as Wangfu means ‘princely residence’. Houhai – The name means ‘Rear Sea’ in Chinese. It is a beautiful area that is famous for its lake. You can go for a boat ride during the day or at night both of which have stunning views of the city and landscapes. The area is famous for its restaurants, pubs, bars and nightclubs along the lake which attracts a lot of young locals and tourists. Xie Xie! (Thank You in Mandarin)

Biography of Pope John Paul the Second Essay -- Popes Religion Religio

Biography of Pope John Paul the Second The most recognised man in the world, His Holiness Pope John Paul II was born in Wadowice, Poland on the 18th May, 1920. When he was born he was given the name Karol Jozef Wojtyla, Karol after his father and Jozef after the father of Jesus Christ. He was referred to affectionately as Lolek. By the age of 21 the Pope had experienced great loss with the deaths of all the immediate members of his family. His mother died when he was only 8 years old, his elder brother, a doctor, when he was 12 and his father when he was just 21. His father had dreamed of seeing his son enter the priesthood, but unfortunately he did not live to see him become a priest. As a schoolboy the Pope was an excellent student and an enthusiastic athlete – he skied, hiked, kayaked and swam. The Pope’s family were strict Catholics, but he had Christian friends and Jewish friends – in a time when many behaved in a racist manner towards Jewish people. After graduating from high school the Pope attended the university in Krakow. While at university studying Literature and Philosophy, he also joined a theatre company. In 1939 Nazi Germany invaded Poland. The Nazis closed libraries, and universities – including the one where the Pope studied. They shot people for going to the theatre and even for speaking the Polish language. They even shot priests who opposed them. The Pope also saw his Jewish friends and neighbours being herded into the ghetto. During this time the Pope worked in a quarry and a chemical factory while he studied Theology in secret. â€Å"Any day I could have been picked up on the street, at the factory or at the stone quarry and sent to a concentration camp. Sometimes I asked myself: ‘So many people at my age were losing their lives, why not me?’†. When the Seminary in Krakow re-opened after the war the Pope continued his studies and he was ordained on the 1st November, 1946. Learning was important to the Pope and over the next few years he obtained a number of degrees. As a young priest in Poland the Pope defied the Communist authorities. Privately he advised and encouraged political activists. He developed a Catholic newspaper that conveyed views that opposed those of the communist government. He founded secret clubs for Catholic intellectuals and ran an underground seminary for future priests from ne... ...cognised their importance to the Holy Catholic Church by instituting World Youth day. The first gathering was in 1984 when he invited the youth to gather in Rome for a special celebration - an international jubilee of youth. The following year he invited the youth to come again to celebrate the United Nations International Year of Youth. He was so overwhelmed by the numbers that came that he decided to make it a regular celebration. World Youth Day is held every two years. This year the celebration is being held in Cologne, Germany. The Pope had a large capacity to forgive. In 1981 he was shot in an assassination attempt. The Pope visited his would-be assassinator in gaol offering him his forgiveness. Throughout his 26 papacy he worked tirelessly for mankind to bring peace and justice to the world. He reminded us of the value of individuals in the modern world. In recent years we have seen the Pope struggle as his health has failed him, but he continued to meet the daily challenges of life. It was this humanity, his warmth as a human being and his ability to talk plainly that made people feel close to him, and this is why so many mourn throughout the world at this time.

Who Are Are, from Where We Came

First of all, if I want to interpreted by the way of religiones point of view then I think this topic goes to meanless way. I have a knowledge by which I can explan it in proper way. Today we should given the side and lates talk on a historin what they were saying about this topic. I want to commence with quetation â€Å" the world depend upon human, but the human are illution† Start with the Annonaki I think this will never wrong to mention the Annonaki first in my this topic. We should to exam him first in front of my friends. The Annunaki belonged from sumerian religion since 25oo year ago and after few years the sumerian group has been replaced by Akkadian and later to babylonians untill they have been converted to christianity. In islamic point of view the Annunaki is called a (jinn). He was basically worked of god. Lates come to main point †¦ the Annunaki was the superiour to the igiges. The igiges were working for Annunaki to digging the god in planet earth. After same era the igiges were rebiling againt the Annunaki and after some years the Anki suggested to created the humankind by the Annunaki blood in the process on tube mechanism to burn the mankind. In the statement the many historine weren,t believe on this but after 18, 19 century the tube mechenism of tube . after the development in this field the thinker commence the believe on this explanation. There are one other story about the human on the bases of science. The science teach us the human body is called a biological computer . the human body are attracted by the help of heart then the heart transmitted to entire body . the energy come to our body from over surround environment. By this energy the sencs working and on the bases of sencs the MRNA TRNA send the message to brain and the brain worked .

Income inequality Essay

It is the report which is talking about income inequality. It is global income inequality is increasing. Besides that that’s is more information about measurement for the income inequality The relationship between the income inequality and economic growth Technological change and globalisation partly on income inequality, Way to reduce the income inequality, Causes of income inequality, and High income inequality gap-Latin America. Mostly it is all about the income inequality in this assignment is telling about the income inequality. Income inequality Income inequality is about the measurement of people’s household or individual based on their income across the various participants in an economy. It is also known as the gap between the rich and poor, wealth and poverty, the different of income between populations or individual (Ram, R. (1988)). Measurement To measure the income inequality have to use the Gini coefficient which developed by Italian statistician in 1912. The Gini coefficient is measuring the income inequality based on the value of a frequency distribution (for example levels of income). The value of the Gini coefficient is between the range 0 to 1. Therefore, 0 that means â€Å"perfect equality ’’ which every person is getting the same income and 1 that means â€Å"perfect inequality’’ which is all income change to the share of the population with the highest income. The Gini coefficient is also to be used for to measure wealth inequality. This use of Gini coefficient requires that no one has a negative net wealth. Besides that, the Gini index often used which is the Gini coefficient expressed as a percentage, but it is equal to the Gini coefficient multiplied by 100. (Most of the time people are using the Gini index for calculating the income inequality. ) Graph1(source:http://people. stfx. ca) The graph above shows that the Gini coefficient is equal to the area which is shaded to the yellow colour. The relationship between the income inequality and economic growth Graph 2(source : author’s calculation) The graph above is showing the relationship between the income inequality and economic growth. Besides that, the graph above is showing the improvement in the Gini of 0. 01 costs 1. 6 per cent per year in per capita economic growth which mean economic growth improves may affect the income inequality. The relationships between the income inequality and economic growth have a very strong gap sometimes. That means change of economic growth would affect the income inequality. Therefore, the economic growth will reduce the income inequality when the salary of the lowest paid rise faster than the average wage. Besides that, the economic growth can increase the job opportunity for people to reduce the level of unemployment in the social. Economic growth often creates the job opportunity for those people who are high skilled and educated. After job opportunity increased can make the level of poverty decreased and reduce the income inequality. Enhancing the growth of economic may raise the income inequality such as increasing the flexibility of wage determination. The growth of economic is showing the extension for flexibility of wage determination. To increase the wage of employee may reduce the income inequality but it also made the labour cost increased for the employer. Increasing the wage agreement to firms may make some employers have to pay the highly salary of employee. This action may increase the unemployment and affected productivity of the company decreasing because labour cost too high makes the employer hard to endure (Murtin et al. , 2012). graph 3 The graph above is showing the global income inequality is increasing from the year 1820 to the year 2008. The Gini coefficient is increasing that mean income inequality is increasing at the same time. But, sometime the economic growth may not reduce the income inequality. It is because the Economic Growth will not necessarily solve unemployment. For example, growth cannot solve structural and frictional unemployment it is because unemployment (structural and frictional) which caused by lack of skills and geographical immobility. Technological change and globalisation partly on income inequality The current technology with globalisation might rise in the market equipment and create the boosting top incomes. (Rosen, 1981; Gordon and Dew-Becker, 2008). These days, the the change of technology is affecting too fast, however it can also influence the income inequality. It is due to inclined the job opportunity for people who high skilled, but also increasing the unemployment. For instance, those who have not high-skilled workers might drop their work due to the same repetitive happens that may be running on the technologies, technological for achieving the target. Thus the desires for those workers can decline due to the change of technological. Likewise, to estimate for both highly-skilled and low-skilled workers need to focus respective work even the technology change, both of them might difficult to replace by machines or lose their job. If the demand shift is not offset by the equal shift related to the labour supply, change in technology can lead to reduction in salary. (e. g. Autor et al. , 2006, Goos et al. , 2009). At the same time, the globalisation may also increase the income inequality. 1) The offshoring (change the national). It is talking about people from richer countries move to poorer countries or poorer country move to richer country. The offshoring happen because skill intensive in their country. For example, some people from the perspective of the skill-poor country may move to rich country for searching the job opportunity. For the conclusion, offshoring makes labour demand more skill intensive in both poorer and richer countries, thus it is increasing the income inequality in both groups of countries (Feenstra and Hanson, 1996). 2) Sometime, the firms are making a different in their profitability which can make the low-income workers work in satisfaction and create low-productivity firms. That would make the firm lose their competitor compare to the other company. At the same time, it may increase labour income inequality by lowering or reducing the employment (e. g. Egger and Kreickemeier,2009; Helpman et al. , 2010). Improvement of the Globalisation and technological change may further raise the income inequality. Besides that, technology may go to the globalisation but it is also increasing the competition between companies to the company in the world, that mean globalisation for technology may force firms to Innovate. Therefore, the Innovation is increasing the labour income inequality both temporarily – since R&D is skill intensive (Dinopoulos and Segerstrom, 1999; Neary, 2003) and it provided the R&D results in skill-biased on technological change as discussed above (Acemoglu, 2002). Caused of income inequality -Different religion, region, language and gender In Indian have many different of culture, race, religion and language. This situation is making the Indian citizen get a different education or maybe some of don’t even have the opportunity to study. It is because different of culture, race, religion language and sex in Indian might made some of them didn’t get the chance to study or educated. At the same, this kind of diversity is making a trouble to access to education and chance of employment might decrease also at the same time. This is calling the kind of discrimination. The different is making the people in suffer from significant of inequality in employment, education and income. This kind of situation is increasing because different family background might made the living standard become harder and difficult, caused the income increasing in India (Desai & Kulkarni, 2008). -Technology The technology is improving all the time, but it also is decreasing the opportunity of job for people who are unskilled and limited educated. The company have to increase productivity to satisfy the demand from market. A lot of companies are investing to the technology to increase their productivity and growth in their business. Therefore, the number of automatic machine increasing is decreasing the job for those people who are working in manual, handy, limited educated and unskilled. In the same time, the service job could increasing because the technology improvement and factory job such as manual and handy is reducing. The service increased but it is just a low pay job. Technology is increasing the income inequality and it is replaced many worker in factory in U. S (WSJ, Technology, Not Globalization,Feeds Income Inequality, July 24, 2008). -Education The raising of education level is the most efficient way to reduce the income inequality. It is because the education has the great relation to the income distribution. The investment in education can made the income inequality decreased and lowers the level of poverty. People who is educated can get a higher opportunity to get a job compared to those are limited educated. It is important to send the child to the school and educated for increasing their intelligence and knowledge for achieving their ambition. In Brazil have a high inequality of income because average of citizen of Brazil attends fewer year to school compared to other. Number of Brazilian is increasing compared to the other country compared to the Latin America (Carlos Aguiar de Medeiros of International Development Economics Associates, 2001) -Price Stability The price stability is also known as inflation problem. In Brazil, inflation happens is making the poor getting poorer but the rich getting richer. It is because when facing the inflation problem or price instability, the company (rich) is following the same contract of wage or income to pay the salary to their employee (poor). Therefore, the poor have to reduce their living standard with their unchanged pay or real lower wages. At the same time, the investor (rich) can move their financial to other country for more opportunity to protect their money during the inflation. But, the poorer citizens have to work in a harder situation so it is difficult for them to escape poverty. (Carlos Aguiar de Medeiros of International Development Economics Associates, 2001) -Impact of Social Benefits In China, government have to provide a lot of benefit to their citizen. For example of social benefit, it is more like social insurance income or pension benefit. Caused of population increased and economic reforms need a greater financial to stimulate the economic growth. Therefore, have to reduce the social benefit such as pension benefit. It is big impact those are affected and increasing the income inequality. At the same time, not only the pension benefits government of China have to reduce the other social benefits such house benefit, health benefits, food assistance and other when have to improve the economic growth but increase income inequality (Gao 2006). http://www. networkideas. org/ideasact/jun07/beijing_conference_07/carl_riskin. pdf Way to reduce income inequality -Immigration Immigration policy would make United States reduce the income inequality. To let in more immigrants who is highly educated and skill will making more job to the America workers. More immigrants don’t mean reduce the opportunity of job to the America workers because it is creating more jobs to those people who are limited educated and limited skill at the same time. While immigrants are highly educated came to America such as: doctor, engineers, lawyer, entrepreneurs and other may increasing the job opportunity to the citizen of America who is limited educated. The job for United State people could increase caused by the immigrants system. Therefore, reducing the number of workers (immigrants) who is limited education might reducing the income inequality to the America because created more opportunity for those people who is limited education and unskilled. (Enrico Moretti is the Michael Peevey and Donald Vial Chair in Labor Economics at the University of California, Berkeley. He is the author of â€Å"The New Geography of Jobs† (2012). ) -Education In the France that strategy been used make sure every citizen in the country might get the chance to study or educated. It is the one of way to reduce the income inequality which has to be start on education. The education is very important because it can the people in the country to improve their living standards; reduce the income inequality at the same time. New analysis is showing that an increasing for the job opportunity for people with education is associated which is making a decline in labour Earnings inequality in France (Fournier and Koske, 2012). An education is giving to every citizen for get a higher chance to get the job opportunity might reduce the income inequality. -Protecting Our Poor, Elderly and Women to Reduce Income Inequality In Singapore is making the new job for those women, elder worker, and poor people to find and obtain a new job. It is helping them to avoid poverty but have to reduce their salary in their new job. This kind of policy is enabling those workers such as migrants, women, and elder worker to get an income and escape poverty. In the labour market, giving the new job for those people might increase the productivity in Singapore and reduces the income inequality at the same time. But a new job in low pay is providing for that unemployment or can’t find the job; women have been terminated in their job because of pregnancy, and unconscionably obtuse of the elder employee. Have to pay in low wage because their productivity in work also reducing but it still can helped them to continue their live or living (SINGAPORE POPULATION WHITE PAPER, 2013) -Heavy-industry-oriented development strategy In China is starting the strategy of heavy-industry-oriented development to increase the speed of pace of industrialization. To focus of heavy-industry-oriented development strategy, China is increasing the amount of resource from the agriculture. At the same time, it is increasing the opportunity of job. It is because it is some kind of investment to increase the productivity of China by heavy-industry-oriented development which is providing by China government. To run the strategy, the government of China is moving the industry to the less developed rural regions for increasing the job opportunity for those people over there and reducing the income inequality. To reduce the region income inequality, the strategy of heavy-industry-oriented development might carry on rural region to increase their job opportunity. To increasing the growth of economic in China, have to increase the job opportunity for those are employment and increasing the productivity in China. This may decrease the income inequality gap in China (Yang 2002). Conclusion The information above is showing the income inequality is increasing in the world. The income inequality is making people become poorer for those are poor and make the people become richer for those are rich. Therefore it is the economic issue including the outcome, earning and economic growth. It is why income inequality is the one of target or problem for macroeconomic to solve. Reference -Ram, R. (1988) http://www. collinsdictionary. com/dictionary/english/income-inequality -Graph1 http://people. stfx. ca -Graph 2 (source : author’s calculation) -Murtin et al. , 2012 http://www. oecd. org/eco/labour/49421421. pdf