Plato believed, and attempted to prove, that the justice of the city and the justice of an individual had a direct link to one another.  Plato relied on logic and the use of metaphors as well as the three main parts of the soul that include reason, desire and spirit.  He further believed that four virtues, wisdom, temperance, courage, and justice, also defined the soul of a person.  Plato considered all of his beliefs to be of the utmost importance as he sought to define a perfect republic.

According to Plato, souls that were filled with reason found an interest in knowledge.  He believed that these souls belonged to a class of people known as philosophers and that the virtuous aspect of their soul was wisdom.  Plato assumed that the brain was strongly connected to reason and therefore, people who practiced reason had a strong mind.  Although the evidence was lacking, Plato had made a very good guess when he made this assumption.

In terms of desire, Plato believed that this soul belonged to the commoners and that their virtue was temperance.  He sought to prove that their main interest was pleasure and that this interest rooted from the abdominal parts of the body.  In this situation, he believed that bad forces ruled these people and therefore they had no control over themselves and their behaviors.  These people were enslaved by their overwhelming desires.  This was desire to please themselves and the anatomical parts of their bodies that ruled them.

A person that had a soul full of spirit was believed to be in a class of warriors.  Plato said that their interest was honor and that their virtue was courage.  The spirited soul was closely linked to the heart of a person.  This spirit was the very essence of a person’s soul, the driving force of energy that kept bad influences at bay and allowed them live good, virtuous lives.  These warriors upheld the law, unlike those that were filled with desire.

During his research, Plato tried to link justice to each one of his classifications of the soul.  He found that he could not do this and therefore he placed justice, as a virtue, in all three categories.  He believed that everyone started with a white background and that overtime, certain social classifications and influences “dyed” these backgrounds and defined the souls of each individual.

Within the Republic, moreover, the soul’s tripartite division plays the pivotal role of establishing an analogy between the individual soul and the political state.  According to this model, the soul’s rational element is the psychological corollary of the guardian class in the city; the spirited part is analogous to the militaristic auxiliaries, and the diverse appetites correspond to the various productive craftsmen and traders (Purshouse 60-61).

Within ancient Greek culture, arête means virtue.  It is when a person strives to be as good as they can be in life, reaching their maximum potential as a good and virtuous human being.  Plato believed this to be true for both men and women.  Plato was nearly obsessed with arête and he constantly worked to answer the questions of virtue and justice.  The Platonic philosophy holds a belief in the fact that virtue and knowledge are one in the same and therefore, knowledge and arête are the same as well.  Plato tried to define exactly what arête really was and whether or not it could be taught or if it was something that was learned.

Plato, being a student of the famous Socrates, reinstates the question that Socrates tried to put forth by asking what justice really is.  People who were not raised in intellectual situations were prone to be blacksmiths or farmers, the peasants.  People who were courageous were the guardians of the city, acting as an army or police force.  Intelligent people were considered a rarity and were granted control over city.  It was their job to guide the people, in particular the commoners.  The courageous people were put in charge of guarding this wise group of teachers, their laws, and their beliefs.  Plato also summarizes justice as being defined by those who are strong and intelligent.  He further summarizes that these intelligent and strong souls are the ones who decide what is in the best interest for everyone else.  Socrates, however, refutes this claim since he believes that even those who are strong fail to see what is best.

Plato believed that the state could only find perfect justice if they allow themselves to be ruled by those who are intelligent and not just willingly, they had to enjoy being governed by the intellects.  It was extremely important for Plato to define these three types of souls in order to find a way to perfect the justice of the state.  He thought that if he learned why each individual fell into a particular category of souls that it would be easier to govern them.  He set forth a certain list of activities and teachings that would be given to a certain group of individuals based on their category of souls in order to teach them to ignore their feelings of temperance.

Plato’s theories seemed somewhat radical, even during his own lifetime.  He believed that justice and happiness went hand in hand.  When a person acted in a just fashion, they were a happy individual and vice versa.  Therefore, people that behaved immorally were not happy and if they wanted to be happy, they would strive to be just.  People who wished to fulfill their desires must learn to use reason in order to act upon that just behavior.  They also needed to learn how to control their emotions.  If they used reason to control their emotions and desires, they could reach their full potential as a just and happy human being.  “On the other hand, those simple and moderate desires, which go hand in hand with intelligence and right opinion, under the guidance of reasoning, will be found in a small number of men, that is, in those of the best natures and the best education” (Plato, and Tschemplik 148).

When Plato speaks of justice and happiness, he poses a question that, at times, seems unclear.  It is a choice to live either justly or unjustly.  Each individual makes the decision between right and wrong by their own accord.  Since Plato suggests that people can only find happiness if they are just, this suggestion is a form of guidance, more or less taking away an individual decision and determining what he believes to be just behavior.  However, one argument that we continue to see is that not all things that are just are good.  Therefore, how can we reasonably say that being just leads to happiness?  “The question whether justice is good for us and makes us happy, has more breadth and depth than might at first appear” (Santas 5).

Republic leaves the reader with no choice other than to make a decision as far as what is just and unjust.  The reader has three classifications to choose from which each rival each other in their own way.  Each choice is laid out in a solid and yet philosophical manner as well.  Plato further goes on to say a person cannot choose an answer that is just unless they are first willing to understand exactly what justice is.  We are also forced to choose between the differences in societies and make choices between them as well.

There were several concerns with Plato’s justice system.  In The Republic Plato uses his characters Glaucon and Adeimantus to show readers the voice of objection and concern associated with his ideas about those with spirited souls, otherwise known as the guardians.  He fails to breakdown differences between men and women beyond height and gender itself.  Instead, he proposes that as guardians, men and women with spirited souls should be taught in the same fashion to perform the same roles within society.  He also tears down the importance of family as a role within society by saying that instead of parents teaching their own children, it should be up to society to teach the children.

All three categories of souls, the wise, the courageous and the desirous could become good as a whole if they performed their roles by working together harmoniously and willingly.  If they could manage to act as one, work together to reach for this inner good, they would also reach a perfect justice system.  True justice would arise as a whole once these three souls meshed and willingly performed their function as they were supposed to with one another.  The person who experienced injustices simply lived with both the healthy and unhealthy personality and the unhealthy, unhappy side of that person was the most dominant, refusing to live in harmony.

The traits of the wise and strong were those that were desirable.  People that displayed opposite behaviors needed to be trained so that they could eventually develop these quality traits.  It was a person’s behavior, not their frame of mind, which held the utmost importance in terms of values.  This means that a person could perform a courageous or intellectual act without necessarily being courageous or intellectual.  Since the action of a person receives recognition, it is possible to teach them to perform these actions.  “One can do ‘the courageous thing’ without being courageous.  This links with the other feature of ‘externally’ assessed virtue: a person may perform ‘the courageous act’ out of social conformity, or out of fear of dishonor, and so on - motives which may not differ from those of the genuinely courageous person but be antithetical to them” (Lycos 3).

Socrates greatly contrasted the thoughts of Plato.  He sought to persuade society to determine the depth of a person’s virtue based on internal factors and not external acts.  Furthermore, he believed the state of mind was of the utmost importance instead of the actions of a person.  A person’s state of mind is what allowed them to act a certain way.  If they had a courageous state of mind, it would enable to them to act courageously.  It is because of this reason that Socrates attempted to teach people internally rather than externally.  Virtues would protect the people from the plagues of over excessive temptations and desires so that they can lead a good life.

However, although virtue is regarded as good, it does not necessarily mean that people will be able to avoid any misfortunate events in their life just because they hold strong or intellectual virtues.  Plato felt that trying to study the internal factors of a person could not actually prove whether a person was courageous, intellectual or tempted.  External factors can lead to misery, even for virtuous people.  Moreover, if a person is virtuous they can still perform an action to the best of their ability despite the extenuating circumstances.

If a person is virtuous and good, they do not necessarily please society.  However, if they perform an action that pleases society they are considered virtuous and good.  It is the response received after performing a certain action, which enables a person to call themselves good.  This way of thinking is considered moral subjectivism.  Plato argues against this moral subjectivism and yet he openly admits that an action is only considered virtuous and good based on the properties of that action and the responses acquired from that action.

If we were to judge a person’s morals based on their actions we would not listen to the words that came out of their mouths.  Morals are based on the laws that are set by the political system and community itself.  Thus, a person is moral if their actions follow what the law expects of them and not by what they think or speak.  Plato seeks to encourage people to act morally by teaching them moral behaviors in order to build a utopian and perfect justice system.

Since virtue is always defined by actions, it is for this reason that arête is also defined as “functional excellence”.  In order to understand this definition better an example needs to be used.  A baker’s job is to bake breads for customers.  People who are not bakers are capable of baking bread yet the baker is the best at performing this specific task.  If the previous statement is true then we can agree with the fact that a moral person is more capable of performing a moral action.

Although there are certain jobs that must be performed by each individual within a community, not everyone is going to perform the functions that they are supposed to do.  When we break down all that we have learned about Socrates and Plato’s thoughts on the human soul, we must ask ourselves our own set of philosophical and moral questions.  Can a person be taught to perform certain moral tasks?  To some extent, the answer is yes.  It is possible to teach a person moral behaviors.  However, a person must want to learn and therefore not everyone can be taught which makes a perfect justice system unattainable.

Another thing that we have learned is that a moral action is determined by how pleasing the response is.  If this is the case, then not everything that is done should be considered moral since our need to be pleased by an action should be considered a desire and Plato has already posed the problem that souls filled with desire are problematic and do not follow moral behaviors.  How is it fair to judge a person’s morality based on our own desires?

Adeimantus speaks of a society that needs no guardianship.  He talks about people that are well taught and self-disciplined.  These people are capable of watching themselves and their own behaviors without the need for a law enforcement agency to make them follow any moral behaviors.  This is his description of a perfect and justly educated society.  This would also be considered a Utopian society.  A society such as this would be impossible since people act on their own accord, based on their own freed will.  “Rather than imagine a well-disciplined society that corresponds to the well-disciplined individual, he imagines a society that would require no discipline at all, because each of its members is sufficiently self-disciplined to dispense with social constraint” (Ferrari 37).

Since Plato did not actually answer questions with any specific detail, it may seem hard to understand him.  The arguments that were posed seem somewhat vague and they tend to go back and forth from one conclusion to another.  In short, the one thing that we know is that although his ideas of what defines a soul were good, they were not necessarily correct.  Groups of people do not all share the same virtues.  Within a group of leaders, you may find one that is courageous, another to be wise, and another to be filled with desire and greed.  It is actually an injustice to assume that only intellectual people are rulers.  It is also unfair to claim that only courageous people can protect the law and that only commoners have desires.

Each person will behave how they choose and although outside factors may influence certain behaviors, it is who they are that will determine how they react to those outside influences.  Although it may be possible to guide certain people in order to help them make moral decisions, it is up to the person to make that decision and not those that teach, therefore, Plato’s perfect justice system was an impossible dream.

References

Ferrari, Giovanni R. F. City and Soul in Plato’s Republic. Chicago: The University of Chicago

Press, 2003. 37. Print.

Lycos, Kimon. Plato on Justice and Power: Reading Book I Of Plato’s Republic. Albany: State.

University of New York Press, 1987. 3. Print

Plato,  and Andrea Tshemplik. The Republic. Student ed. IV. Lanham, MD: Rowman &

Littlefield Publishers, Inc., 2005. 148. Print.

Purshouse, Luke. Plato’s Republic: a Reader’s Guide. New York, NY: Continuum Internation

Publishing Group, 2006. 60-61. Print.

Santas, Gerasimos. Understanding Plato’s Republic. Malden: Blackwell Publishing, 2010. 5.

Print.

Ratios

(Figures in 000)

Q1.

Ans1) Total sales have significantly increased in the year of 2008 by 19.3% compared to last year 2007. The major reason for this is that Alphameric  Corporation has strictly tighten its credit policy and have given their customers a credit period (payment period) of 45 days.

Receivable turnover 08 = sales/Avg Rec

= 35915/4422 =8.12

Receivable turnover 07 = 30104/52327

= 0.57

Average Collection period 08 =365/Rec turnover

= 365/8.15 =45days

Average Collection period 07 =365/.52 =634 days

Previously sales were not converting into cash as there were no strict credit policies.

Q2.

Ans2)

Operating Profit 08 = Gross profit - other expenses

=2905-5314-180 = -2589

Operating Profit 07 = (4113) +(427) + (180) = -4720

Q3.

Ans3)

Gross Profit Margin 08 = Gross Profit/Sales

=2905/35915 = 8.08%

Gross Profit Margin 07 = (4113)/30104 = -13.6%

Q4.

Ans4)

Operating Profit Margin 08 = Operating Income/ Sales

= (2589)/35915 = -7.2%

Operating Profit Margin 07 = (4720)/30104 = -15.6%

Q5.

Ans5) Sales have turned into cash in 2008 with help of strict credit policy and reduced the operating loss by 53 % in 2008. If this policy continues Alphameric  Corporation will soon have positive operating profit.

Q6.

Ans6) The business is on the way to improvement, which is quite obvious from the gross profit figures. Gross profit margin is positive 8.08% as compared to negative -15.6%. The business has made a improvement of almost 160% in 2008 which clearly signifies it that the business is going in the right direction.

Other ratios that can be included to monitor the operations are gross profit margin, pretax margin.

Pretax Margin 08 = EBT/Sales

= (2184)/35915 = - 6.08%

Pretax Margin 07 = (5106)/30104 = -16.96 %

Q7.

Ans7) Assets have significant dropped compared to last year. Fixed assets have dropped by 6384000 to             4139000 pounds. Overall in 2008, assets are better utilized and enhancing the performance of the business. Business fixed assets and current assets have decreased but the company’s trade receivable have significantly dropped causing a massive increase in cash in 2008.

Current Ratio 08 = CA/CL

= 33422/(18819) = -1.77

Current Ratio 07 =20702/(18450) = -1.12

Current ratio is still very bad

Quick Ratio 08 = 31382/(18819) = -1.67

Quick Ratio 07 = 16646/(18548) = -0.89

Working Capital 08 = CA - CL =33422 -18818 = -14603

Working Capital 07 = 20702 - 18450 = -2252

WC Margin 08 = WC/Sale=  -14603/35915= -0.406

WC Margin 07=  -2252/30104 = -0.075

Asset have been badly affect in the year 2008 as there  is a significant in increase in the current and long term liabilities over a year. This has also affected the retain earning. Assets have been sold off in 2008 to meet the current liabilities as Alphameric corporation was liquidity crisis which can be seen above. In terms of assets, the overall position is worse off but liquidation of assets were the only option for the Alphameric corporation survival.

Return on Assets 08 = Net income/total assets = (2127)/45664 = -4.65%

ROA 07 = (3909)/63669 = -6.01%

Q8.

Ans8) Alphameric corporation handled the assets inefficiently specially in year 2007, where these assets were inefficiently used to generate sale and then cash. In order to pay off the liabilities and meet the cash shortages liquidation of assets  were the only option.

There has been pertinent decrease in the intangible assets, which suggests that the company has sold off its intangible assets such as patents, copyrights, franchise or even Goodwill.

Fixed asset margin 08 = 12242/35915 = 0.34

Fixed asset margin 07 = 42967/30104 = 1.42

The company is significantly worse off because of the liquidation of assets.

Q9.

Ans9)

Working capital 08 = Inventories + receivables -payables

= 2040 + 12182 - 16265 = -2045

Working capital 07 =4056 + 16646 -  11722 =8980

This ratio suggests that the Alphameric corporation  had no liquidity crisis of cash flow problems in 2007, which has become the major problem  in 2008.

Q10.

Ans10)

Working Capital 08 = CA - CL =33422 -18818 = -14603

Working Capital 07 = 20702 - 18450 = -2252

WC Margin 08 = WC/Sale=  -14603/35915= -0.406

WC Margin 07=  -2252/30104 = -0.075

Working capital was never managed properly, though the situation got worse in 2008 which was the affect of inefficient handling of assets in 2007. This lead to further liquidation of assets.

Q11.

Ans11)

The company had no cash available in 2007 because of poor credit policies but the corporation generated good amount of cash in 2008 of 19202 pounds.

Q12.

Ans12)

Investing cash flow has been mostly affected from the sale /liquidation of fixed assed  which has caused the increase in cash by  19202.

Q13.

Ans13)

Article Critique

Introduction

According to Melissa and Jessica, this is a study carried to provide a picture on gender differences in mate poaching. The study had various questions all aimed at getting the feelings of different people (of different age and liking) on interests that may affect their pursuant to relationships. The study was conducted on participants from Oklahoma State University. In writing the report findings, the researchers review different authors on the subject to ensure that it has the required scientific rigor. Further, adequate literature review enables readers to have confidence in the findings and also it allows others to reference the materials without doubt.

Independent Variable(s) used in the Study

The independent variable is like the explanatory variable(s) in any research study and its outcomes does not depend on any other variable(s). In this research study, the independent variable is gender (Females and Males). In this case, the relationship status will be compared for both women and men. The comparison is done using graphs, Analysis of Variance (ANOVA) and measures of dispersion (e.g. standard deviation).

Dependent variable(s) used in the study ‘relationship status-single or attached) and qualities of the ideal romantic partner. The relationship status and the qualities of the romantic partner depend depends on the gender of the respondent. This can further be ascertained by the literature review. The dependent variables show the comparisons of men and women. Further, one variable, like relationship status, is controlled for the other variable, qualities of ideal romantic partner, and vice versa. The differences in both men and women are then determined using one explanatory variable holding the other constant.

Sampling used to gather Subject

Sampling is one of the areas the research work has faltered. In this research study, there is no indication of any sampling done prior to the research work. In this case, a sample of 184 participants was used and was made up of 97 women and 87 men. For an ideal research study in which the results are meet the expectations of a research study, the sample needs to be representative of the entire population. A quality scientific research work has no room for biasness. In such a case, the population needs to be stratified (subdivided into non-overlapping subgroups-strata), for example, by departments (or faculties) since the population is not homogenous where a simple random sample will be carried out as is the case. Stratification involves putting together elements with same (almost) traits together and then picking a simple random sample from each stratum.

Further, there is no indication of the total population in Oklahoma State University as this would have guided in the calculation of the sample size using the formula; n = N / (1+N (e2)). Where ‘n’ is the sample size, ‘N’ is the population size and ‘e’ is the expected error (error on the bound of estimation) which in is 5% in most cases. Once the sample size is determined, then a sample for each stratum is calculated using the formula shown; nk = (Nk / N ) * n; where ‘nk’ is the  sample size for stratum ‘K’, ‘Nk’ is the population size for stratum ‘K’, ‘N’ is total population size, and n is total sample size using the first formula. These formulas would have resulted into the sample size which will mostly represent the entire population without bias.

In any research study, there is need to carryout what is called an understanding of the sample size by administering free consent forms to the participants. This ensures that all participants are aware of the benefits involved and also the understanding that participation is by free consent. This is done mainly to ensure that there is no subject loss which is expensive to the researcher in addition to affecting the precision. In this research study, this is not available.

Reliability of Study

There are quite a number of aspects which makes a research study un-reliable and they include. Withholding some results from the research report findings, reporting findings as though they represent the true feelings on the ground, paying participants to receive positive research results and getting funding from an organization to carry out a research on their behalf with some biasness.

Withholding research findings is all about only reporting the positive ones is shelving the negative ones. Further, generalizing research findings as though to represent the entire population using a smaller sample is not ethical as the findings may be far much different if a larger sample is used. In addition, to pay participants to respond in such a way is against research ethics teachings of free consent and protection of vulnerable groups. Further, for any research to have the required reliability, there is need for a deeper understanding of who did it, why it was done and may be who paid for it to be conducted, may be he/she did it for money.

In this case, the research findings may not be reliable since it was conducted without a mention of the total population in the University which would affect the final sample size. A sample size of 184, although large, may not be large if the total population is taken into consideration. All the other aspects have been taken care of.

Validity of Study

For a research work to be valid, the participants need to be selected at random. Randomness reduces incidences of serial correlation which affects precision and the final research results. Further, randomness minimizes biasness which leads to skewed results. In this case, there is no indication of randomness. Further, there is need to understand whether the research work is double blind in that, the researcher and the participants do not understand what is under study. In this research study, it is evident that the researcher is aware of what is required. Again, a research is valid if it compares its findings and literature with other research works in the same field (topic). There also the need to study interaction effect between the explanatory variables and it significance to the overall research findings.

Reference

Melissa, B and Jessica, P (2009). Who’s Chasing Whom? The Impact of Gender and Relationship Status on Mate Poaching. Journal of Experimental Social Psychology, No. (45) pp. 1016-1019

Michel Foucault was a French thinker and philosopher, who brought a different meaning to word power. He is well known for his thinking and critical appraisal of social institutions. He has done extensive work in the areas of human science, prison systems, psychiatry, and medicine. He is well known for his work on Power and its relationship between Knowledge and Discourse.

One of the key earlier works to Power is the Archeology of Knowledge. It is in this work that Foucault states that “Statement” is the fundamental unit of speech and it has a special meaning in the archeology. Foucault postulates that a statement denotes utterances and/or speech acts. It is in this work that he puts forth the argument that the meaning of semantic elements is in-determinable prior to articulation of the same.

Foucault clearly postulates that statements are a network of rules that establish what is meaningful. And that these rules are the pre-conditions for the speech acts to have meaning. And that the meaning of a statement is contextual and is reliant to the statements that are there before and after it. Foucault ensures that he identifies structures of meaning and truth in his texts; His analysts - Dreyfus and Rainbow - imply that Foucault in his texts prefers to ferret the truth rather than analyzing and hiding it beneath the text in some transcendental text. Foucault, it is said, analyzes the discursive and practical conditions for the existence of truth and meaning. From the style and approach taken by Foucault in this text it is amply clear that Foucault does not want the reader to seek interpretations of the text.

Foucault is also well known for his work on Power. It is in this work that he has almost changed the very definition and the traditional concept of power. Prior to this revolutionary approach to Power it was commonly perceived that power is something in the hands of an individual or a group of individuals who can influence, coax or cajole others to do their bidding or in extreme situations even oppress or dominate others.

Foucault brought in a totally new thinking, newer dimension and perspective - He described “power as capillary or diffuse, ultimately forming a force field detached from any human agency, yet pervading the daily existence of individuals on all steps of the social ladder and ordering their lives in the minutest detail (or affecting the way they regulate their own behavior in similar detail)”. This implies that power is something that power is something that is endowed with power and logic of its own, pretty much independent of social factors.

This is a very different perspective, possibly viewing Power under the dynamics of change of the 19th and 20th centuries. This is different from the definition of Power as made out by Gellner’s dentistry state - where in the rulers inflicted some damage or overuse of power over peasants to extract something extra from the subjects while using violence to pre-empt or punish challengers. While this damage inflict happened on one side the rulers played no role in the regulation of daily life of these subjects. This form of governance fit the well disciplined, traditional societies where rules were clear and natural. Also the issue of compliance was ensured by close-up monitoring. The challenge was when these societies began to break up - This was the situation when there was a need for a new breed of social power that would channelize the energies and entropies and also harmonize of people by the newly disembodied populace.

This was the “New Power” that Foucault refers to as the disciplinary power. This is the newer form of power wherein an individual is constantly under monitoring to ensure compliance of their behavior to scientifically designed and accepted norms. It is in the 19th and the 20th centuries that the need for this new kind of power was felt and it became imperative for the governments to create methods and systems for such constant monitoring and “micro-regulation.”

The governments struggled to ensure implementation of such micro-regulation to whole population whose behavior can be scientifically documented, measured, planned and impressed upon. It is suit this situation that the Foucault coined - “bio-power.” And the need for rethinking on the concept of power.

1. Objective

Due to the fashion safety Rule policies, an organization must put into practice the Contingency Planning Practices to guarantee the protection of the fashion products, workers and the invited guests in general.  In order to achieve this undertaking, there are more than a few steps that an organization must complete to discover serious business functions, processes and venues that are involved in the process of the fashion designing and the fashion industry as a whole so as to comprehend the probable impact to the industry if a disruptive episode occurred.  One of the first steps of implementing this particular Contingency Program is to carry out a Risk Assessment.  This questionnaire will help one recognize the existing risks and threats to such an event and execute measures to eradicate or reduce these potential risks.

2. Risk assessment

Firstly from the information provided we as the group were able to come up with a certain list of various possible risks that can occur within this events period. From this information the most likely risks were arranged in the order of the probability of the risk occurring. Secondly, the probability of these doubts happening and the comparative impact they might have were evaluated. We came up with a certain criteria which are listed below to show the outcome of the probability of the risks happening. Thirdly, the risks we were able to prioritize and made a policy in order to reduce their gravity of the risks in case they happen.

The risk assessment team came up with the following risk as one that is most probable to happen;

Fire risk; as in any event, fire is one of the most common modes of accident. And so as to be clear from fire, we had to include it as one of the risks that can occur. Besides it is important reduce of fire occurring since if it occurs it can affect the whole event and eventually reduce the quality of the designs being released in the winter launch.

3. Risk Response

For the fire risks; the following response is outlined;

The fire alarms are made highly sensitive and therefore, dry ice and smoke machines and fireworks are not permitted. This reduces chances of event interruption.

All entrances, exits and gangways in all areas must be kept unobstructed at all times. The main corridor is the main fire escape route and must be kept clear at all times.

Every studio holds a fire extinguisher. Fire fighting apparatus should be kept clear and be readily accessible. Neither they, nor signs indicating their positions, can be removed or obscured.

The venue holds an additional small supply of hand held fire extinguishers and fire blankets that we have required.

4.0 Contingency Plans

The contingency plan is pretty simple in this case. In case of any risk, e.g. fire, or any other accident, the primary responder is to inform the Contingency Planning Coordinator who in this case is one appointed to do so. All identified. Information must be communicated to the Contingency Planning Coordinator who in turn he informs the systems supervisor who is to get in touch with the Damage Assessment Team Leader and notify them of the fire event.  The Damage Assessment Team Leader is to alert team members and direct them to comprehensive complete the evaluation procedures outlined to establish the degree of damage and predictable recovery time.

There is also the Fire evacuation procedure in which the Contingency Planning Coordinator will brief everyone fully on the fire procedures prior to the event. On hearing the fire alarm, one should evacuate via the nearest fire exit to the Fire Assembly Muster Point, which is located on the triangular patch of grass facing the venue, across the slip road The staff on duty and security staff will also direct you out of the building through the nearest unaffected fire exit. The main exit routes from the venue can be found on the attached venue floor plan provided. Disabled guests will be assisted to evacuate by the appointed person who shall be identified by the Venue / Event Manager prior to the event commencing. The 2 large fire doors halfway down the main corridor and the fire blinds separating the reception and bar area will all close automatically when the fire alarm sounds. Please do not return to the building until you have been given the all clear by your Contingency Planning Coordinator, who will have consulted with the London Fire Service.

Also In case any fatalities, A First Aid Box will be made available and a first aid trained representative will be on site, identifiable within the staff. Additional, First Aid boxes will be located in the reception area. if the fatality is very serious then The nearest accident and emergency unit to Jasmine Studios is: Charring Cross Hospital ,Fulham Palace Road London W6 8RF.

Business Plan for a Startup Business

A business startup requires a lot of thoughts and strategies. Whether it is in the manufacturing industry or the service industry, every minute detail of the business prospect in terms of its profitability to its competitors must be studied and evaluated to understand the gravity of the venture and the risks involved. Thus, a proper business plan has to be developed and tested against the current market to understand its viability.

A business plan will only help to develop and improve the proposed business. It helps the proposed to understand the business, define what they want from the business, understand customer needs, and how to optimize the proposed business.

The first stage of the business plan is to focus on the basic parameters of the proposed business, like constructing the mission statement, identifying the keys to success, undertake market analysis, and create a break-even analysis to give the proposed a critical head start toward understanding the business.

However, startups are not as simple as it seems, for in the manufacturing industry, one needs to address product development, packaging, retail fittings and signage, office equipment, website development and maintenance, and the initial capital to run the show before actual returns are generated. Unless one has the wherewithal to support these expenses on their own, they will then have to look to banks to avail loans. In the service industry, the level of investment is comparatively lesser, and therefore not much thought needs to go into the financial aspect of the startup capital.

An ideal platform for a startup business would be to develop the plan in stages to meet the proposed business goal. Adding a basic sales and expense forecast will help understand profit and loss, so vital in business (Berry, 2008).

There has been a drastic change in the way logistics operate today. Today, logistics is about economics of scope than economics of scale. What this means is that more and more companies are now concerned about the scope for development rather than volume. Quality is what is foremost on the agenda of logistic operators.

Business is characterized as evolving away from the earlier objective of single exchange transactions towards a long-term buyer-seller relationship of mutual benefit. These strategic relationships generate managed supply chains.

Today, logistics involves the cooperation through economic networks for mutual benefits. In other words, individualism has given way to collectiveness. That’s right! Logistics is about total solution under one roof. This way, companies manage their business with lesser paperwork, less tracking and negotiations, and shared responsibilities. What brought about this transformation? Consumers; that’s right! Consumers today seek greater product variety at high quality level and obviously, reliability. Product availability is mandatory. Thus, the huge containers that used to carry high volumes of consignments have now been cut to size to accommodate quicker and easier handling, thereby accommodating faster and efficient services, plus continuity. In order to attain such professionalism, global corporate houses have become centers of corporate structures, centered on the principles of co-operation and partnership; outsourcing of logistics functions.

Globalization and outsourcing has opened new vistas for logistic operators in relatively all areas of operations, be it shipping lines, forwarders, terminal operators, road haulers, or rail operators. The integration of these services under a single umbrella is what corporate managers seek today. Together, this integration provides new value-added services as an integrated package.

Executive Summary

The strategy process is quite intriguing, yet exhilarating. Every company has its share of researchers who respond to the strategy process challenge by identifying certain traits that can either bring moments of exhilaration or disillusion. Disillusion comes from the often grotesque outcome of their effort leading to an outcome that is far from impressive. A lot of empirical research goes into the strategy process; large, often heroic and distinctive, collection of data is required to explore the possibility of linking strategy process and decision-makings, and finally to performance. The potentially revealing and insightful information comes at a cost, a cost that can nip the career perspective of the researcher, if it crashes. However, the outcome, though comprehensive, can be complex, messy, and notoriously fragile.

Nonetheless, a significant part of the research is characterized by controversial normative orientation; strategic change or protecting and extending existing strategies, as Chakravarthy (2003) said. Such outcomes remain highly influential (if successful) until they are outdated, out fashioned, or shown to be hazardous.

In short, a prescription that would guarantee supra-normal profits consistently would de-facto become the strategic management field’s own version of the proverbial money machine (Szulanski et.al, 2006).

1.1       Objective

This paper proposes to illustrate the advantage that introduction of information technology has in leveraging the competitive advantage in the courier industry. The business is set to operate from Minneapolis, and with so many courier companies operating around the city, it becomes imperative for the startup courier business to introduce MIS to enhance and beat competition. Minneapolis-Saint Paul area has many courier companies of repute. Names of OnTrac Courier Services, LLC, General Delivery Service Incorporated, Blazing Saddles INC, Edina Couriers LLC, DHL Express, Dash Delivery Service, On Time Delivery Service, and Quicksilver Express Courier to name a few, are well established names in the courier business, and any startup courier business will have to either match them in service or beat them with technology to make any mark here. It is with this objective in mind that the startup courier company that is proposed will incorporate the best of technology to leverage competition (Citysearch, 2008).

1.2       Mission

The courier industry is highly competitive, and consumers have become far more knowledgeable, and this makes the industry far more complex to run. Unless customer service is enhanced, there is every chance of the business losing important clientele and depleted database. To enhance service and keep abreast competition, the new Courier business will introduce the best of technology to enhance performance through tracking and execution. Since a lot of important documents and consignments are routed to destinations to save time, courier companies need to offer fast, reliable and foolproof service to them. This is what the introduction of new technology will offer, and sought for the new startup company

1.3       Keys to Success

As a startup, the first priority would be to vision the future to create a successful business strategy. The vision is something that is proposed of an industry that it must create, shape and transform over time. For this, the business leaders need to seek input from the enterprise, customers, employees and business partners. Earlier, many business houses defined their products and strategies to attract customers, but this has now changed. Today, concentration is on what values they have created for customers. Therefore business must address customer needs and demands rather than using their product or service and enforcing it on the customer. Greater competition, globalization and faster imitation have caused many products or services to become commoditized. Customers are far more knowledgeable and demanding than earlier days. They have access to more information through new channels such as the Internet. They are more knowledgeable and discerning than ever before and demand exceptional value. Customer relationships have come to the fore.

Peter Drucker (2001) once wrote that there was only one valid definition of a business purpose, and that was to create a customer. What the business thinks it produces is not of importance, it is what the customer thinks he is buying, what he considers as value, that determines the present and future of the business[1].

Similarly, Adrian Slywotzky (1996) in Value Migration[2] said that a business strategy in never complete without addressing its customers, define and differentiate its services, define the tasks it will perform, configure its resources, and creates utility for the customers.

IT related programs to improve and increase customer services are mandatory as well.

2.0       Company Summary

As a startup courier company in the Minneapolis area, the company has great business potential, as the twin cities of Minneapolis-Saint Paul metropolitan area is home to many industries and business. The new company will incorporate some of the latest IT solutions to beat competition. It will put in place a strong supply chain management that will provide real-time visibility and control over changes occurring in the supply chain industry. The technological development is such that, the supply chain industry today has the availability of solutions for Supply Chain Planning (SCP), Supplier Relationship Management (SRM), Enterprise Resource Planning (ERP), and Business Intelligence (BI). This is what will help the new startup company develop its business and beat competition (Oracle Corporation, 2005).

3.0       Product Description

Logistics refers to the systematic management of various activities required to move a product or from the production/manufacture plant to the customer. It encompasses more than just movement of goods; it involves timing, cost, location, availability, and support systems. With globalization, competition at regional and international level has become even more intense, and cost and availability are prime concern for the end-user. Most companies therefore are forced to rethink their logistic operations to maintain stability on all fronts.

While we saw that in the 1980s and 1990s companies tried to out beat competition through improved production and reduced costs (cheap labor being one), technological advancement negated this advantage and forced companies to look for alternatives. Time is a constraint in today’s business world. Time spent on execution of orders has led to legal entanglement and business loss. This is the biggest worry in the world of supply-chain management. There is a growing demand for time-based logistics management, where customers are increasingly sophisticated and value time as money. To ensure quick and efficient streamlined flow of goods from the producer/supplier to the customer, companies now track factors that cause delay and try to eliminate them (Kent N. Gourdin, p.9, 2001).

Efficiency and durability are trade mark of a successful logistic operation. Using state-of-the-art network modeling tools to determine how well the distribution network serves the customers, logistics should include, inbound to outbound facilities, inventory, and service, employing all modes of transport (air, sea, rail, and road). Another important aspect of logistics is to analyze variables, such as inventory cost, time-in-transit, and service by product, industry, and location (Dynamic Logistics, 2007).[3]

The Internet, e-tailing and electronic commerce play an important role in logistics and their importance can be traced to dramatic changes in the corporate world of supply chain management. Together, they have gained importance in bringing gains and sustaining competitive advantage. Of the technology options, Logistics Execution Systems (LES) plays a vital role in the order fulfillment and product delivery.

Companies need to meet challenges, and to do this successfully, they spend time and money developing solutions in-house that will enable them to accurately identify, track, manage and report on material flow as well as efficiently allocate resources to related tasks throughout the pipeline. In order to achieve this, companies need to focus on:

Centralized distribution centers

Channel-specific distribution center design

Repackaging, labeling and pricing at the distribution point

A move to more conventional or hybrid warehousing with on-line, real-time computer-based warehouse management systems

Compliance as well as supplier labeling and price marking

Increased use of standard bar code for product, packaging and ship container identification to facilitate warehouse management, shipment tracking and POS transaction monitoring

Supplier’s retail store level inventory (VMI).

Trading partner communication

Growing use of decision support, modeling and simulation tools

Employee empowerment through tools to increase operational efficiency and productivity

In warehousing operations, an increasing number of companies have grown cautious about investments in large scale, opting instead for more flexible, fully conventional approaches or hybrids that combine mechanized and conventional alternatives (Hill, p.2-3, 2003).

Initially, LES were introduced to permit real-time material tracking and resource management in conventional warehouses, using bar codes for material tracking, a broader array of radio data terminals for industrial applications, and a dramatically improved computer performance at lower cost and a variety of software tools to relational data base management.

Warehouse Management Systems had clearly come of age. Industry leaders began to see results as revenue grew at better than 20% annually and initiated programs to add functionality in the areas of labor (LMS) and transportation (TMS) management. LES (logistics execution systems) emerged as the new acronym for systems that managed material and data flow in the supply chain (Hill, p.4, 2003).

There are three basic forms of outsourcing with regard to supply chain management. These are other methods used to improve production, quality and inventory. They are:

1          The outsourcing of the production of components. Global Corporate develop long-term relationships with a number of suppliers on the basis of mutual trust.

2.         Value-Added Logistics (VAL). VAL implies that production and distribution of a supply chain integrates into one.

3.         The outsourcing of transportation, warehousing and distribution. Third-party Transportation, warehousing and distribution activities are fast growing outsourcing businesses.

Though the above methods have been successfully used and managed by a few corporate, outsourcing of transport, warehouse and distribution should be the ideal situation to minimize capital investment and ensure more professionalism.

4.0       Market Segmentation

A supply chain involves the movement of raw materials from a supplier to the production house, which is then processed to form the final product, before being sent to the customer (who placed the order) through a distribution system. As mentioned earlier, with the advent of computers and software to run them, it has become easy to track the movement of shipments from the origin to their final destination. Any organization that is in the service, maintenance and production sector rely on quick supply and replacement of spares and parts for their business success. Though the functions are more or less the same, supply chains vary depending on the size of the organization and the type of business they are in. Customer satisfaction is paramount. In a highly competitive world of computer hardware manufacture, satisfying a customer is utmost paramount for success. Scheduled deliveries, dispatch of spares and add-ons on time are paramount to the success of that business. Should a customer find his/her business affected due to non-availability of spares, or delayed replacement of machinery parts in their workshop, they will not only cancel their order, but would in all likelihood change the supplier for delayed shipment.

Almost all industries use couriers these days to stay competitive and because of this, all courier companies, must be able to provide foolproof and reliable service to stay in front. Be it the computer manufacturers or their suppliers, heavy or light machinery manufactures or suppliers, office equipment manufacturers and suppliers, service units and so on, they depend on time-bound services to beat competition.

5.    Competitive Edge

Transportation eats into profits considerably. As in the case of location, transportation costs can be minimized by having the distribution centers close to customer’s access. The same can be said in terms of production and spares as well. Air transport is quick, but at the same time expensive, in comparison to shipping by boat or rail. Yet using sea or rail often means maintaining higher levels of inventory in-house to meet quick demands by the customer (Rockford Consulting, 1999).

Some 30% of the cost of a product is encompassed by transportation; therefore it is imperative to use the correct transport mode.

There has been a drastic change in the way seaports operate today. The era gone by Fordism ‘Economies of scale’ has been replaced by ‘Economies of scope’. This post-Fordism change has seen a revolution in logistic movement. Subsequently, the port authorities who were hitherto the ‘bosses’, found themselves at the receiving end. Today, logistics talks of organizations cooperating through economic networks for mutual benefits. In other words, individualism has given way to collectiveness. Consumers today seek greater product variety at high quality and reliability. Availability is mandatory. Thus, huge containers are now cut to size to accommodate faster and efficient services. In order to attain such professionalism, global corporate houses have become centers of corporate structures, centered on the principles of co-operation and partnership; outsourcing of logistics functions.

The outsourcing of transportation, warehousing and distribution is an appropriate way to cut transportation costs. Third-party Transportation, warehousing and distribution activities are fast growing outsourcing businesses. Globalization and outsourcing has opened new vistas for shipping lines, forwarders, terminal operators, road haulers, rail operators and barge operators. Together they provide new value-added services as an integrated package. Improvements in terminal and landside operations are required to lower the cost on door-to-door servicing and savings at sea, one reason why shipping companies are expanding their scope to include terminal operations and hinterland transportation. Customer service is most important for any business. In order to achieve this, easy product reach is necessary. This can be provided using multi-level mode of transport to reach the customer’s destination (Christopher M, 1992).

Strategy process can be defined as the identification or uncovering of connections between the social, cognitive and political processes by which strategies can be formulated to make firms perform (Szulanski et.al, 2006).

Wireless technology, such as @Par combines with ERP and WMS systems. This technology enables clients for pick-up, put away, receive, deliver, dispatch, cycle count, and cart management functions, the lifeline of the supply chain business. It is built on a robust platform that integrates through XML. It has advanced features like instant messaging, speech recognition; RFID tags, and uses a wireless LAN to transmit data in real time.

IristaWare system prioritizes, directs and confirms activities based upon the real-time conditions and constraints of space, equipment, and inventory. This software enables companies to automate their inbound order processes, inventory control, and outbound distribution activities using RF, barcode, and auto-ID technology. From advanced ship notice (ASN) processing to lot and serial number maintenance, iristaWarehouse tracks and controls the movement of both raw materials and finished goods through the distribution network. Advanced functionality including yard and dock management, value added processing, cross-dock fulfillment, and wave planning provide the tools to increase throughput while reducing operating costs (irista.com).

Monitoring and analyzing daily demand signals creates an accurate forecast in inventory and transportation. Real-Time Forecasting (RTF) helps reduce forecast errors substantially leading to reduced and expedited shipments and transportation costs.

In can also be noted that how today’s standards-based modeling, monitoring, connectivity, and process integration tools that comprise IBM’s Process Integration suite are allowing companies to implement process automation components with greater speed and agility than ever before.(Noel, Supply Chain Management).

Decisions pertaining to supply chain management cover long-term and short-term goals. Strategic decisions come under the jurisdiction of corporate policies, while operational decisions deal with day-to-day activities and problems within the organization. Therefore, an organization normally structures their supply chain on a long-term basis, while at the same time, focus on the day-to-day activities. In order to succeed, corporate heads need to assess the market demands, customer service, transport considerations, and pricing constraints to structure the supply chain effectively. These factors are inconsistent, and thus have to be monitored regularly to avoid harm.

Structuring a supply chain also requires an understanding of the demand patterns, service level requirements, distance considerations, and cost estimation, among others. These factors too are highly volatile, and can affect deliveries and supplies. Thus, this is an additional parameter that needs constant monitoring.

6.    Sales Strategy

Innovation is the secret behind success and failure. By treading known strategies or ideas, one can never achieve the kind of success envisaged by them. It takes more than just hard work to beat competition. Innovation makes all the difference. Considering the various technological advantages available today to offer efficient, safer and fast services, the new startup courier company can with limited resources be able to outsource a major part of its services and still end up with a sizable business volume that hurts competition.

Transportation eats up a major chunk of a producer’s profit, and if a solution is provided to ease the tension and at the same time, reduce their overheads, it will become an instant success. This is what is required by the startup courier company to concentrate on.

7.0       Management Summary

With the introduction of new technology to support operations, tracking and routing of consignments will be easy and clients will be able to get prompt delivery schedules and confirmations, enabling them to plan their strategies to minimize costs. In today’s world of globalization, the movement of spares and important machines are routed through couriers because of their worth. Couriers engage in land, air and sea transport to complete of shipments based on their value and size. By tie-ups, the company will be able to minimize their operational costs, but enjoy handsome returns from their association with partners. This will enhance profits and help the startup courier company to beat competition. The new technology will decrease manpower and operational overheads, while at the same time, streamlining deliveries.

8.0       Financial Plan

The Financial plan must draw on the following to derive the profit and loss statement and the revenue generated by the courier business for the first year of operations.

Company Name:

Income Statement for the year ending _____________ [Month]

Revenue:

Revenue: Services
Total Revenue Generated: Services

Revenue: Miscellaneous
Bank Interest
Total Revenue: Miscellaneous

Revenue: Expenses

Direct Costs:
Materials
Equipment Rentals
Salary (Owner)
Wages
Maintenance
Miscellaneous
Total Direct Costs

General And Administration
Accounting and Legal Fees
Advertising and Promotion
Bad Debts
Bank Charges
Depreciation and Amortization
Insurance
Interest
Office Rent
Telephone
Utilities
Credit Card Commissions
Credit Card Charges
Total General And Administration

Total Expenses

Net Income before Income Taxes

Income Taxes

Net Income

CASH FLOW PROJECTIONS

(Add a row of monthly headings to cover one year period)

Cash Revenues
Revenue from Service Charges
Cash Disbursements
Cash Payments to Franchisee Partners
Management Draws
Salaries and Wages
Promotion Expense Paid
Professional Fees Paid
Rent/Mortgage Payments
Insurance Paid
Telecommunications Payments
Utilities Payments
Total Cash Disbursements

Reconciliation of Cash Flow
Opening Cash Balance
Closing Cash Balance:           Total ash Revenues - Total Cash Disbursements
(Susan Ward, About.com).

9.0       Profit and Loss

10.0     Conclusion

While starting a courier company may be simple, there is more to a company that sustains itself in the face of competition and those that fizzle out without a fight. A lot of study and planning is required to undertake a project that has numerous competitors fighting over the spoils. This report just about summarizes the basic needs to understand the market requirement and what are the parameters to be addressed to launch a competitive courier company in Minneapolis area. With a huge industrial and business base, Minneapolis offers good opportunities to well-established and unique service providers. The basic necessity of any service-oriented company is to address the needs of the customer, for, the customer is king.  Innovation and the use of technology such as MIS and RTF (Real-Time Forecasting) and Wireless technology, such as @Par combined with ERP and WMS systems help courier companies to track and record the movement of consignments. With globalization, courier business has gone overboard and more and more practices are being incorporated to beat competition. Logistics is an area of wide acceptance, as machinery and equipment find their way across borders to ease production and quality costs. This has made many courier companies to expand their business into multi-mode logistic operations with partnerships to ease huge capital investments.

The new startup courier company that is sought to be made up looks at including logistics in a big way to beat existing business in the Minneapolis area.

11.0  Bibliography

Berry T, Bplans: A Simpler Plan for Startups, http://articles.bplans.com/index.php/business-articles/writing-a-business-plan/a-simpler-plan-for-start-ups/

Szulanski G, Porac J, and Doz Y, Strategy Process: Introduction to the Volume, The Challenge of Strategy Process Research, 2006, http://www.rotman.utoronto.ca/~baum/v22_intro.pdf

iristaWare, http://www.irista.com

Jasmine Noel, BPM and SOA: Better Together, IBM-sponsored white paper by analyst, a founding member of Ptak, Noel & Associates, http://all-free-info.com/supply-chain-management

Christopher M., 1992, Logistics and supply chain management: Strategies for reducing costs and improving services (London: Pitman Publishing).

Citysearch, 2008,  http://twincities.citysearch.com/yellowpages/directory/Twin_Cities_MN/20/532/page1.html

Rockford Consulting Group Ltd, RCG University, Supply Chain Management, 1999, http://rockfordconsulting.com/scm.htm

Oracle Corporation, Measuring Supply Chain Excellence, March 2005 AMR Research report “How Best to Measure Your Supply Chain Today, http://www.oracle.com/newsletters/updates/2005-10-21/supply-chain-management/measure-supply-chain-effectiveness.html

Kent N. Gourdin, 2001, Global Logistics Management: A Competitive Advantage for the New Millennium, Blackwell Publishing, Google Book Search

John M. Hill, 2003, White Paper, Logistics Execution Systems Perspective, Supply Chain Forum, www.idii.com/wp/ESYNC_LES_Perspective.pdf

Dynamic Logistics, Services, 2000-2010, www.dynamiclogistics.com

Susan Ward, About.com, Small Business: Writing the Business Plan, http://sbinfocanada.about.com/cs/businessplans/a/bizplanfinanc_4.htm

[2] Adrian J. Slywotzky, 1996, Value Migration, Howard Business School Press, Boston, p.4

[3] Dynamic Logistics, Services, www.dynamiclogistics.com

Business Plan for a Startup Business

A business startup requires a lot of thoughts and strategies. Whether it is in the manufacturing industry or the service industry, every minute detail of the business prospect in terms of its profitability to its competitors must be studied and evaluated to understand the gravity of the venture and the risks involved. Thus, a proper business plan has to be developed and tested against the current market to understand its viability.

A business plan will only help to develop and improve the proposed business. It helps the proposed to understand the business, define what they want from the business, understand customer needs, and how to optimize the proposed business.

The first stage of the business plan is to focus on the basic parameters of the proposed business, like constructing the mission statement, identifying the keys to success, undertake market analysis, and create a break-even analysis to give the proposed a critical head start toward understanding the business.

However, startups are not as simple as it seems, for in the manufacturing industry, one needs to address product development, packaging, retail fittings and signage, office equipment, website development and maintenance, and the initial capital to run the show before actual returns are generated. Unless one has the wherewithal to support these expenses on their own, they will then have to look to banks to avail loans. In the service industry, the level of investment is comparatively lesser, and therefore not much thought needs to go into the financial aspect of the startup capital.

An ideal platform for a startup business would be to develop the plan in stages to meet the proposed business goal. Adding a basic sales and expense forecast will help understand profit and loss, so vital in business (Berry, 2008).

There has been a drastic change in the way logistics operate today. Today, logistics is about economics of scope than economics of scale. What this means is that more and more companies are now concerned about the scope for development rather than volume. Quality is what is foremost on the agenda of logistic operators.

Business is characterized as evolving away from the earlier objective of single exchange transactions towards a long-term buyer-seller relationship of mutual benefit. These strategic relationships generate managed supply chains.

Today, logistics involves the cooperation through economic networks for mutual benefits. In other words, individualism has given way to collectiveness. That’s right! Logistics is about total solution under one roof. This way, companies manage their business with lesser paperwork, less tracking and negotiations, and shared responsibilities. What brought about this transformation? Consumers; that’s right! Consumers today seek greater product variety at high quality level and obviously, reliability. Product availability is mandatory. Thus, the huge containers that used to carry high volumes of consignments have now been cut to size to accommodate quicker and easier handling, thereby accommodating faster and efficient services, plus continuity. In order to attain such professionalism, global corporate houses have become centers of corporate structures, centered on the principles of co-operation and partnership; outsourcing of logistics functions.

Globalization and outsourcing has opened new vistas for logistic operators in relatively all areas of operations, be it shipping lines, forwarders, terminal operators, road haulers, or rail operators. The integration of these services under a single umbrella is what corporate managers seek today. Together, this integration provides new value-added services as an integrated package.

Executive Summary

The strategy process is quite intriguing, yet exhilarating. Every company has its share of researchers who respond to the strategy process challenge by identifying certain traits that can either bring moments of exhilaration or disillusion. Disillusion comes from the often grotesque outcome of their effort leading to an outcome that is far from impressive. A lot of empirical research goes into the strategy process; large, often heroic and distinctive, collection of data is required to explore the possibility of linking strategy process and decision-makings, and finally to performance. The potentially revealing and insightful information comes at a cost, a cost that can nip the career perspective of the researcher, if it crashes. However, the outcome, though comprehensive, can be complex, messy, and notoriously fragile.

Nonetheless, a significant part of the research is characterized by controversial normative orientation; strategic change or protecting and extending existing strategies, as Chakravarthy (2003) said. Such outcomes remain highly influential (if successful) until they are outdated, out fashioned, or shown to be hazardous.

In short, a prescription that would guarantee supra-normal profits consistently would de-facto become the strategic management field’s own version of the proverbial money machine (Szulanski et.al, 2006).

1.1       Objective

This paper proposes to illustrate the advantage that introduction of information technology has in leveraging the competitive advantage in the courier industry. The business is set to operate from Minneapolis, and with so many courier companies operating around the city, it becomes imperative for the startup courier business to introduce MIS to enhance and beat competition. Minneapolis-Saint Paul area has many courier companies of repute. Names of OnTrac Courier Services, LLC, General Delivery Service Incorporated, Blazing Saddles INC, Edina Couriers LLC, DHL Express, Dash Delivery Service, On Time Delivery Service, and Quicksilver Express Courier to name a few, are well established names in the courier business, and any startup courier business will have to either match them in service or beat them with technology to make any mark here. It is with this objective in mind that the startup courier company that is proposed will incorporate the best of technology to leverage competition (Citysearch, 2008).

1.2       Mission

The courier industry is highly competitive, and consumers have become far more knowledgeable, and this makes the industry far more complex to run. Unless customer service is enhanced, there is every chance of the business losing important clientele and depleted database. To enhance service and keep abreast competition, the new Courier business will introduce the best of technology to enhance performance through tracking and execution. Since a lot of important documents and consignments are routed to destinations to save time, courier companies need to offer fast, reliable and foolproof service to them. This is what the introduction of new technology will offer, and sought for the new startup company

1.3       Keys to Success

As a startup, the first priority would be to vision the future to create a successful business strategy. The vision is something that is proposed of an industry that it must create, shape and transform over time. For this, the business leaders need to seek input from the enterprise, customers, employees and business partners. Earlier, many business houses defined their products and strategies to attract customers, but this has now changed. Today, concentration is on what values they have created for customers. Therefore business must address customer needs and demands rather than using their product or service and enforcing it on the customer. Greater competition, globalization and faster imitation have caused many products or services to become commoditized. Customers are far more knowledgeable and demanding than earlier days. They have access to more information through new channels such as the Internet. They are more knowledgeable and discerning than ever before and demand exceptional value. Customer relationships have come to the fore.

Peter Drucker (2001) once wrote that there was only one valid definition of a business purpose, and that was to create a customer. What the business thinks it produces is not of importance, it is what the customer thinks he is buying, what he considers as value, that determines the present and future of the business[1].

Similarly, Adrian Slywotzky (1996) in Value Migration[2] said that a business strategy in never complete without addressing its customers, define and differentiate its services, define the tasks it will perform, configure its resources, and creates utility for the customers.

IT related programs to improve and increase customer services are mandatory as well.

2.0       Company Summary

As a startup courier company in the Minneapolis area, the company has great business potential, as the twin cities of Minneapolis-Saint Paul metropolitan area is home to many industries and business. The new company will incorporate some of the latest IT solutions to beat competition. It will put in place a strong supply chain management that will provide real-time visibility and control over changes occurring in the supply chain industry. The technological development is such that, the supply chain industry today has the availability of solutions for Supply Chain Planning (SCP), Supplier Relationship Management (SRM), Enterprise Resource Planning (ERP), and Business Intelligence (BI). This is what will help the new startup company develop its business and beat competition (Oracle Corporation, 2005).

3.0       Product Description

Logistics refers to the systematic management of various activities required to move a product or from the production/manufacture plant to the customer. It encompasses more than just movement of goods; it involves timing, cost, location, availability, and support systems. With globalization, competition at regional and international level has become even more intense, and cost and availability are prime concern for the end-user. Most companies therefore are forced to rethink their logistic operations to maintain stability on all fronts.

While we saw that in the 1980s and 1990s companies tried to out beat competition through improved production and reduced costs (cheap labor being one), technological advancement negated this advantage and forced companies to look for alternatives. Time is a constraint in today’s business world. Time spent on execution of orders has led to legal entanglement and business loss. This is the biggest worry in the world of supply-chain management. There is a growing demand for time-based logistics management, where customers are increasingly sophisticated and value time as money. To ensure quick and efficient streamlined flow of goods from the producer/supplier to the customer, companies now track factors that cause delay and try to eliminate them (Kent N. Gourdin, p.9, 2001).

Efficiency and durability are trade mark of a successful logistic operation. Using state-of-the-art network modeling tools to determine how well the distribution network serves the customers, logistics should include, inbound to outbound facilities, inventory, and service, employing all modes of transport (air, sea, rail, and road). Another important aspect of logistics is to analyze variables, such as inventory cost, time-in-transit, and service by product, industry, and location (Dynamic Logistics, 2007).[3]

The Internet, e-tailing and electronic commerce play an important role in logistics and their importance can be traced to dramatic changes in the corporate world of supply chain management. Together, they have gained importance in bringing gains and sustaining competitive advantage. Of the technology options, Logistics Execution Systems (LES) plays a vital role in the order fulfillment and product delivery.

Companies need to meet challenges, and to do this successfully, they spend time and money developing solutions in-house that will enable them to accurately identify, track, manage and report on material flow as well as efficiently allocate resources to related tasks throughout the pipeline. In order to achieve this, companies need to focus on:

Centralized distribution centers

Channel-specific distribution center design

Repackaging, labeling and pricing at the distribution point

A move to more conventional or hybrid warehousing with on-line, real-time computer-based warehouse management systems

Compliance as well as supplier labeling and price marking

Increased use of standard bar code for product, packaging and ship container identification to facilitate warehouse management, shipment tracking and POS transaction monitoring

Supplier’s retail store level inventory (VMI).

Trading partner communication

Growing use of decision support, modeling and simulation tools

Employee empowerment through tools to increase operational efficiency and productivity

In warehousing operations, an increasing number of companies have grown cautious about investments in large scale, opting instead for more flexible, fully conventional approaches or hybrids that combine mechanized and conventional alternatives (Hill, p.2-3, 2003).

Initially, LES were introduced to permit real-time material tracking and resource management in conventional warehouses, using bar codes for material tracking, a broader array of radio data terminals for industrial applications, and a dramatically improved computer performance at lower cost and a variety of software tools to relational data base management.

Warehouse Management Systems had clearly come of age. Industry leaders began to see results as revenue grew at better than 20% annually and initiated programs to add functionality in the areas of labor (LMS) and transportation (TMS) management. LES (logistics execution systems) emerged as the new acronym for systems that managed material and data flow in the supply chain (Hill, p.4, 2003).

There are three basic forms of outsourcing with regard to supply chain management. These are other methods used to improve production, quality and inventory. They are:

1          The outsourcing of the production of components. Global Corporate develop long-term relationships with a number of suppliers on the basis of mutual trust.

2.         Value-Added Logistics (VAL). VAL implies that production and distribution of a supply chain integrates into one.

3.         The outsourcing of transportation, warehousing and distribution. Third-party Transportation, warehousing and distribution activities are fast growing outsourcing businesses.

Though the above methods have been successfully used and managed by a few corporate, outsourcing of transport, warehouse and distribution should be the ideal situation to minimize capital investment and ensure more professionalism.

4.0       Market Segmentation

A supply chain involves the movement of raw materials from a supplier to the production house, which is then processed to form the final product, before being sent to the customer (who placed the order) through a distribution system. As mentioned earlier, with the advent of computers and software to run them, it has become easy to track the movement of shipments from the origin to their final destination. Any organization that is in the service, maintenance and production sector rely on quick supply and replacement of spares and parts for their business success. Though the functions are more or less the same, supply chains vary depending on the size of the organization and the type of business they are in. Customer satisfaction is paramount. In a highly competitive world of computer hardware manufacture, satisfying a customer is utmost paramount for success. Scheduled deliveries, dispatch of spares and add-ons on time are paramount to the success of that business. Should a customer find his/her business affected due to non-availability of spares, or delayed replacement of machinery parts in their workshop, they will not only cancel their order, but would in all likelihood change the supplier for delayed shipment.

Almost all industries use couriers these days to stay competitive and because of this, all courier companies, must be able to provide foolproof and reliable service to stay in front. Be it the computer manufacturers or their suppliers, heavy or light machinery manufactures or suppliers, office equipment manufacturers and suppliers, service units and so on, they depend on time-bound services to beat competition.

5.    Competitive Edge

Transportation eats into profits considerably. As in the case of location, transportation costs can be minimized by having the distribution centers close to customer’s access. The same can be said in terms of production and spares as well. Air transport is quick, but at the same time expensive, in comparison to shipping by boat or rail. Yet using sea or rail often means maintaining higher levels of inventory in-house to meet quick demands by the customer (Rockford Consulting, 1999).

Some 30% of the cost of a product is encompassed by transportation; therefore it is imperative to use the correct transport mode.

There has been a drastic change in the way seaports operate today. The era gone by Fordism ‘Economies of scale’ has been replaced by ‘Economies of scope’. This post-Fordism change has seen a revolution in logistic movement. Subsequently, the port authorities who were hitherto the ‘bosses’, found themselves at the receiving end. Today, logistics talks of organizations cooperating through economic networks for mutual benefits. In other words, individualism has given way to collectiveness. Consumers today seek greater product variety at high quality and reliability. Availability is mandatory. Thus, huge containers are now cut to size to accommodate faster and efficient services. In order to attain such professionalism, global corporate houses have become centers of corporate structures, centered on the principles of co-operation and partnership; outsourcing of logistics functions.

The outsourcing of transportation, warehousing and distribution is an appropriate way to cut transportation costs. Third-party Transportation, warehousing and distribution activities are fast growing outsourcing businesses. Globalization and outsourcing has opened new vistas for shipping lines, forwarders, terminal operators, road haulers, rail operators and barge operators. Together they provide new value-added services as an integrated package. Improvements in terminal and landside operations are required to lower the cost on door-to-door servicing and savings at sea, one reason why shipping companies are expanding their scope to include terminal operations and hinterland transportation. Customer service is most important for any business. In order to achieve this, easy product reach is necessary. This can be provided using multi-level mode of transport to reach the customer’s destination (Christopher M, 1992).

Strategy process can be defined as the identification or uncovering of connections between the social, cognitive and political processes by which strategies can be formulated to make firms perform (Szulanski et.al, 2006).

Wireless technology, such as @Par combines with ERP and WMS systems. This technology enables clients for pick-up, put away, receive, deliver, dispatch, cycle count, and cart management functions, the lifeline of the supply chain business. It is built on a robust platform that integrates through XML. It has advanced features like instant messaging, speech recognition; RFID tags, and uses a wireless LAN to transmit data in real time.

IristaWare system prioritizes, directs and confirms activities based upon the real-time conditions and constraints of space, equipment, and inventory. This software enables companies to automate their inbound order processes, inventory control, and outbound distribution activities using RF, barcode, and auto-ID technology. From advanced ship notice (ASN) processing to lot and serial number maintenance, iristaWarehouse tracks and controls the movement of both raw materials and finished goods through the distribution network. Advanced functionality including yard and dock management, value added processing, cross-dock fulfillment, and wave planning provide the tools to increase throughput while reducing operating costs (irista.com).

Monitoring and analyzing daily demand signals creates an accurate forecast in inventory and transportation. Real-Time Forecasting (RTF) helps reduce forecast errors substantially leading to reduced and expedited shipments and transportation costs.

In can also be noted that how today’s standards-based modeling, monitoring, connectivity, and process integration tools that comprise IBM’s Process Integration suite are allowing companies to implement process automation components with greater speed and agility than ever before.(Noel, Supply Chain Management).

Decisions pertaining to supply chain management cover long-term and short-term goals. Strategic decisions come under the jurisdiction of corporate policies, while operational decisions deal with day-to-day activities and problems within the organization. Therefore, an organization normally structures their supply chain on a long-term basis, while at the same time, focus on the day-to-day activities. In order to succeed, corporate heads need to assess the market demands, customer service, transport considerations, and pricing constraints to structure the supply chain effectively. These factors are inconsistent, and thus have to be monitored regularly to avoid harm.

Structuring a supply chain also requires an understanding of the demand patterns, service level requirements, distance considerations, and cost estimation, among others. These factors too are highly volatile, and can affect deliveries and supplies. Thus, this is an additional parameter that needs constant monitoring.

6.    Sales Strategy

Innovation is the secret behind success and failure. By treading known strategies or ideas, one can never achieve the kind of success envisaged by them. It takes more than just hard work to beat competition. Innovation makes all the difference. Considering the various technological advantages available today to offer efficient, safer and fast services, the new startup courier company can with limited resources be able to outsource a major part of its services and still end up with a sizable business volume that hurts competition.

Transportation eats up a major chunk of a producer’s profit, and if a solution is provided to ease the tension and at the same time, reduce their overheads, it will become an instant success. This is what is required by the startup courier company to concentrate on.

7.0       Management Summary

With the introduction of new technology to support operations, tracking and routing of consignments will be easy and clients will be able to get prompt delivery schedules and confirmations, enabling them to plan their strategies to minimize costs. In today’s world of globalization, the movement of spares and important machines are routed through couriers because of their worth. Couriers engage in land, air and sea transport to complete of shipments based on their value and size. By tie-ups, the company will be able to minimize their operational costs, but enjoy handsome returns from their association with partners. This will enhance profits and help the startup courier company to beat competition. The new technology will decrease manpower and operational overheads, while at the same time, streamlining deliveries.

8.0       Financial Plan

The Financial plan must draw on the following to derive the profit and loss statement and the revenue generated by the courier business for the first year of operations.

Company Name:

Income Statement for the year ending _____________ [Month]

Revenue:

Revenue: Services
Total Revenue Generated: Services

Revenue: Miscellaneous
Bank Interest
Total Revenue: Miscellaneous

Revenue: Expenses

Direct Costs:
Materials
Equipment Rentals
Salary (Owner)
Wages
Maintenance
Miscellaneous
Total Direct Costs

General And Administration
Accounting and Legal Fees
Advertising and Promotion
Bad Debts
Bank Charges
Depreciation and Amortization
Insurance
Interest
Office Rent
Telephone
Utilities
Credit Card Commissions
Credit Card Charges
Total General And Administration

Total Expenses

Net Income before Income Taxes

Income Taxes

Net Income

CASH FLOW PROJECTIONS

(Add a row of monthly headings to cover one year period)

Cash Revenues
Revenue from Service Charges
Cash Disbursements
Cash Payments to Franchisee Partners
Management Draws
Salaries and Wages
Promotion Expense Paid
Professional Fees Paid
Rent/Mortgage Payments
Insurance Paid
Telecommunications Payments
Utilities Payments
Total Cash Disbursements

Reconciliation of Cash Flow
Opening Cash Balance
Closing Cash Balance:           Total ash Revenues - Total Cash Disbursements
(Susan Ward, About.com).

9.0       Profit and Loss

10.0     Conclusion

While starting a courier company may be simple, there is more to a company that sustains itself in the face of competition and those that fizzle out without a fight. A lot of study and planning is required to undertake a project that has numerous competitors fighting over the spoils. This report just about summarizes the basic needs to understand the market requirement and what are the parameters to be addressed to launch a competitive courier company in Minneapolis area. With a huge industrial and business base, Minneapolis offers good opportunities to well-established and unique service providers. The basic necessity of any service-oriented company is to address the needs of the customer, for, the customer is king.  Innovation and the use of technology such as MIS and RTF (Real-Time Forecasting) and Wireless technology, such as @Par combined with ERP and WMS systems help courier companies to track and record the movement of consignments. With globalization, courier business has gone overboard and more and more practices are being incorporated to beat competition. Logistics is an area of wide acceptance, as machinery and equipment find their way across borders to ease production and quality costs. This has made many courier companies to expand their business into multi-mode logistic operations with partnerships to ease huge capital investments.

The new startup courier company that is sought to be made up looks at including logistics in a big way to beat existing business in the Minneapolis area.

11.0  Bibliography

Berry T, Bplans: A Simpler Plan for Startups, http://articles.bplans.com/index.php/business-articles/writing-a-business-plan/a-simpler-plan-for-start-ups/

Szulanski G, Porac J, and Doz Y, Strategy Process: Introduction to the Volume, The Challenge of Strategy Process Research, 2006, http://www.rotman.utoronto.ca/~baum/v22_intro.pdf

iristaWare, http://www.irista.com

Jasmine Noel, BPM and SOA: Better Together, IBM-sponsored white paper by analyst, a founding member of Ptak, Noel & Associates, http://all-free-info.com/supply-chain-management

Christopher M., 1992, Logistics and supply chain management: Strategies for reducing costs and improving services (London: Pitman Publishing).

Citysearch, 2008,  http://twincities.citysearch.com/yellowpages/directory/Twin_Cities_MN/20/532/page1.html

Rockford Consulting Group Ltd, RCG University, Supply Chain Management, 1999, http://rockfordconsulting.com/scm.htm

Oracle Corporation, Measuring Supply Chain Excellence, March 2005 AMR Research report “How Best to Measure Your Supply Chain Today, http://www.oracle.com/newsletters/updates/2005-10-21/supply-chain-management/measure-supply-chain-effectiveness.html

Kent N. Gourdin, 2001, Global Logistics Management: A Competitive Advantage for the New Millennium, Blackwell Publishing, Google Book Search

John M. Hill, 2003, White Paper, Logistics Execution Systems Perspective, Supply Chain Forum, www.idii.com/wp/ESYNC_LES_Perspective.pdf

Dynamic Logistics, Services, 2000-2010, www.dynamiclogistics.com

Susan Ward, About.com, Small Business: Writing the Business Plan, http://sbinfocanada.about.com/cs/businessplans/a/bizplanfinanc_4.htm

[2] Adrian J. Slywotzky, 1996, Value Migration, Howard Business School Press, Boston, p.4

[3] Dynamic Logistics, Services, www.dynamiclogistics.com

The company maintains a held-to-maturity portfolio because they want some investments to be realized only after they had fully matured and has no need until it has been so, (Held-to-Maturity Securities, 2007). These investments are those wherein they used they own excess money and that they are using their excess financial capacity to gain something from the financial needs of the other companies by buying the bonds issued from these companies. They might also have an available-for-sale portfolio for those securities that they themselves have created and intend to sell to other investors. These available for sale bonds are the ones that the company itself will be selling in case that the company will be the one that needs more infusion of capital for its operation to continue. Lastly, they are keeping traded securities because they too can aim to invest in other stocks owned by other companies that they deem to be generating healthy returns good enough for them. This is a healthy for the company to ensure that they too can manage to control their own cash flows and needs. This will also be another added assurance that they are not going to need some cash flows in the future and that they are not going to be in a situation wherein they will be forced to declare bankruptcy.

The company maintains separate portfolios for the held-to-maturity, available for sale, and trading securities because they all operate and behave differently when they reach their maturation date. Both their uses and their behavior in the balance sheet differs greatly that is why the company has to maintain separate accounts for each of them in order to make sense of what is going on each of the different type of security they are holding on to. It would also be very inconvenient if the records for each of these securities are mixed up with each other because it would be very confusing to try to compute and analyze what happened to the investment of the company in case the management wants to see where their efforts are taking them finally.

B. The identifying factors that can identify a held-to-maturity security are those securities that a firm is holding to and intend to hold until its maturity. These held-to-maturity securities are considered as default categories because they were bought in the first place with the intention of holding them until they reach their maturation date. The available for sale security are obviously those securities that the firm is still holding until such time that the firm can dispose of it. It is increased with a debit and decreased by a credit. The trading securities on the other hand are those considered as an asset and are increased with a debit and decreased by a credit, (Securities Trading, 2007).

When there is an unrealized loss for those held-to-maturity securities, they are usually charged or credited directly to a debit account. Usually though, all of these investments are directly credited to the income or loss account when there is any “realized” gain or loss on them. As a rule, they are classified as according to the intent by which they were held in the first place. They are widely classified by their purpose according to the intention of the corporation that holds them. These losses are created from the difference of the interest rate at the time from which the bond was issued on a fixed rate and the current prevailing market rate.

Bibliography:

Held-to-Maturity Securities, (2007)

http://www.investopedia.com/terms/h/heldtomaturity.asp

Securities Trading, (2007)

http://www.encyclopedia.com/doc/1E1-securtrd.html

A.

The propriety of recording machinery as part of the corporation’s assets when it was purchased at its cash market value not yet its full amount is more like a lease than an outright purchase since the full market price plus the gain of the seller to the corporation has not yet been settled. That is why it is more reasonable to treat the event as a lease of capital assets since the corporation has yet to pay fully in cash, (Capital Assets, 2007). The proprietary right of the company when it has purchased the equipment at this price one half to the total of they are owing the equipment company entitles them to the right to own the equipment until fully paid as long as they don’t fail to pay the monthly installments with the stated rates that was stipulated in the contracts in order for them to be able to fully take full control and ownership of the equipment and be at their disposal without anymore obligations to deal with in case of failure to pay.

If the corporation is to pay for the asset in its full cash price, then it should be treated more like an outright capital expenditure rather than a leased equipment like the previous example discussed. If the equipment supplier has agreed to give the equipment to the company as long as they pay in full in and in cash, then they have no more things to worry about because it will be treated like a fully completed sale already. The only exception to this would be the installment payment of the company for the equipment until such time that they can repay the remaining $ 25,000 that was left unpaid for at the start.

Lastly, if the corporation has fully paid for the equipment plus the mark up placed by the seller to its selling price, then the company can treat the expense as an outright purchase instead of an installment capital expenditure like the first example described. This last example would also enable the company to be able to cut off all manners of ties to the seller since they have no more obligations to settle between them. This type of payment would undoubtedly erase all forms of obligations that the company would have been otherwise been obligated for.

B.

The balance can be treated as a normal liability since the item indeed behaves just like the rest of the normal balance sheet items. The item needs to be treated as such because it requires the company to still continue paying the item as if it is not creating some form of economic gain for the company as it is being used currently. It behaves like a liability since it is also draining income from the balance sheet of the company and it also demands that it be paid its full price in the until its contract expires.

On the other hand, those who are proposing that it should be treated as a treasury stock has some good points because of the fact that the company did buy some of the stock that it sold to the open market,( Investopedia, “What is treasury Stock”, 2007). This automatically results in an improvement on the value of the stock that the rest of the shareholder holds because they now have fewer shares to split the dividends with and fewer owners to share the dividends with. The only thing that the shareholders of the company have to watch out for is the ultimate intention why the buyback of the shares was done in the first place. If it was indeed done because the company was just intending to make its payment schedule a bit lighter and make use of the capital expenditure for further income generating pursuits then they can consider as a good buyback. The buyback that was done however purely to manage and manipulate the financial ratios to make them look good in the balance sheet but not in the fundamentals.

Bibliography:

Principles of accounting, (2007)

http://www.principles-of-accounting.com/g.php?C=4801969&D=898970&domain=principles-of-accounting.com&K=principles+of+accounting&V=5168&K=principles+of+accounting

Investopedia, “What is treasury Stock”, (2007)

http://www.investopedia.com/ask/answers/03/111303.asp

Capital Assets, (2007)

http://www.ofm.wa.gov/policysc/85.60sc30.htm

Eva Peron was one of the most powerful women of our time. From a poverty stricken, illegitimate child to the First Lady of Argentina, Evita traveled a long road. Loved passionately and hated equally as strongly, there are many myths and legends surrounding this woman. From the power she wielded during her life to her legacy that is still living, Eva was indeed a remarkable woman. Described as the Cinderella of Argentina, Eva did indeed make all her dreams come true.

Evita Peron, born Eva Maria Duarte, in contrast to the heights to which she rose, came from very humble beginnings. Eva was born in 1919 in Los Toldos, Argentina to Juana Ibarguren. Eva’s father, Juan Duarte had a fifteen year long affair with Juana, although he was already married. The couple was stable, though, and Eva and her four siblings, Blanca, Elisa, Juan and Erminda were all legally acknowledged by their father. Even though the children were acknowledged, when their mother took them to their father’s funeral in 1920, they were not allowed to enter. Eva’s family lived in very poor economic circumstances and in order to survive, her mother and sisters hired themselves out has cooks to wealthy families. In this life of struggling for money, Eva got her first glimpse of the differences between the rich and poor in Argentina and the ideal of social equality would be one that would carry through to the rest of her life. Eva attended school in the town of Junin, where she and her family ended up settling down. Eva had very difficult early years, she wasn’t a very promising student, receiving average grades, and remembered by most of her classmates as being rather awkward looking. Realizing that she didn’t have much of an academic future, Eva became interested in acting. When she got a small part in the school play, Arriba Estudiantes, Eva made up her mind that she would one day become a famous actress.

When Eva was fifteen years old, a tango singer named Agustin Magaldi came to Junin to perform, a few days later, Eva left with him for Buenos Aires and the opportunity to realize her dream of becoming an actress. Life was very difficult for a fifteen year old girl in a big city, and Eva had to take on lovers who would support her. Eva finally got her first jobs as a model for magazines. She was very thin, but beautiful and Eva achieved some success posing for ads. Eva got her first break as an actress in a bit part in the play, La Senora de Perez, in 1935. It was a very small part, though and troubled by ill health and few roles, it seemed that Eva’s dream of becoming an actress would never be realized. Eva finally used one of her male connections to land a part on one of the radio soap operas that had become popular at the time. Eva became increasingly popular as a radio actress and she used her popularity to make connections in the military and continue her relationships with men in power. Eva’s friendships with high ranking military officials resulted in raises and small parts in movies. Although Eva was not a great actress, she loved the movies and quickly learned that making friends with the director was the best way to a good part. Eva was mildly successful, but no where near as great as the star she aspired to be, when she met a young army colonel named Juan Peron at a fund-raising benefit.             Eva met Juan Peron at an earthquake relief fund raiser in 1944. They fell in love and Eva began living with him very shortly after they had met. Juan was handsome and dashing and Eva was young and glamorous, they made the perfect couple. Eva lived for almost two years as Peron’s mistress and was by his side as he rose to power. Peron’s ambition was as great as Eva’s and together they made a perfect political team. Peron became very popular with the people of Argentina. He became the Secretary of Labor and Welfare, pledging himself to be a man of the people, he established a minimum wage and better conditions for the working man. Peron made powerful alliances with union leaders and became very much a man to be feared in the government. Peron would jail union leaders who did not join with him and used his position of power to bully those around him. In spite of his lack of tolerance for opposition, Peron became incredibly popular with the people and stood in a position to take over the government. Eva was a key part in Peron]s rise to power, she encouraged and sometimes bullied him towards success, but her role as his mistress still kept her very much behind the scenes. Finally, Ramirez grew tired of Peron’s power and defiance and had him arrested on October 11th, 1945. Eva’s response was immediate, she quickly phoned all of Juan’s friends in the trade unions and organized a rally in the capital for the release of Juan Peron. Peron was released on October 17th and his position as the most powerful man in Argentina was secured.

Eva and Juan were married in a civil ceremony on October 18, 1945. At first the marriage was kept quite, because Eva was of low birth, his former mistress, and an actress, she was viewed as unworthy of entry into the social circles in which Juan moved. It was a risky marriage, a great many of Juan’s army friends disliked the control that Eva had over him and his political life. In fact, the two were not married by the church until several months later, on December 9th. Eva was delighted with her new husband, she had spent her life desiring to be wealthy and glamorous and with the marriage certificate, she felt that she had finally gained the respect that she deserved. Eva was by no means using Juan to achieve power, though. Eva loved and even worshiped her husband. In her autobiography, she describes the marvelous day on which she first met her husband. In reading Eva’s own words, one can truly see how much she adored Juan. She truly believed that he was next to a living god and their marriage was a source of great pride and happiness to her. Juan adored Eva as well, the proof of this being in the enormous risks he took in marrying her. Eva was viewed as a second class citizen by the higher society in Argentina, but Juan never forgot all that she had done for him and kept her firmly by his side. The Perons marriage was and ideal one, perfectly matched in love and ambition, they became the successful team that could rule Argentina.

Peron was elected president soon after they were married, and Eva soon became a force to be reckoned with in the government of Argentina. Now that Eva was Juan’s wife, she could be given some of the public attention that she had longed for. Eva quickly became very popular with the working class of Argentina, she used her own humble beginnings to show that she had sympathy for the poor people and their plight. Eva encouraged the people to call her “Evita” and began to truly reach out to the public. She was given her own office in the capital and from there she organized her work for the less fortunate citizens of Argentina. Eva founded the Eva Peron Foundation, and used that organization to distribute wealth to the poor. The organization was funded by the yearly donation of a days salary from each of the citizens of Argentina. Eva built hospitals and schools, she helped the elderly and became know to many as the “Lady of Hope”. Eva also built a housing project for the poor known as “Evita Village”, it held 4,000 new homes, each completely furnished and ready for a poor family to move into. Eva also helped a bill allowing women to vote be passed and in the next election hoped that her feminist supports would back her husband. Eva also wanted power for herself as well. In a rally nominating Juan for a second term as president, the crowd also demanded that Eva run as vice-president. With the support of the public, Eva accepted the nomination, but pressures from the military against a woman in such a high position forced Eva to back down. Although Eva did many great things for the poor of Argentina, she was in many ways as ruthless a dictator as her husband. As Juan tightened his control over the country through the use of the military, Eva as well became more and more powerful. Eva was very vindictive and used her new position as first lady to have all those who had snubbed her when she was a mere struggling actress blacklisted. Eva had no tolerance for opposition, and those that dared to disagree with her and her husband were often put in jail. When the American magazine, “Time” ran an article stating that Eva was an illegitimate child, it was banned in Argentina for four months. Eva and Juan shut down any newspapers that opposed them and ruled Argentina with an iron hand.

In an attempt to increase her popularity, Eva visited Europe. She was very well received in her first stop, Spain. In an attempt to improve trade relations with Argentina, Franco treated Eva like royalty. She was presented with incredible amounts of gifts and the public was rallied in preparation to meet her. The other European countries were not as enthusiastic as Spain, though. The Pope had not forgotten that she had been Juan’s mistress and only spent twenty minutes with her when Eva visited the Vatican. Her reception in France was equally as cool and the English royalty refused to invite Eva to Buckingham Place. Eva returned to Argentina after three months, disappointed and eager to return to a country where she was practically worshiped.

Eva Peron put on quite a facade to the world while she was first lady. Over one hundred furs, a wardrobe full of new Christian Dior dresses, a jewelry collection comparable to that of Cleopatra’s, and her full acting spirit shrouded Evita in mystery. Eva was loved by many throughout her life. Although the focus is generally on her worship of Juan Peron, it is said that he worshiped her equally. And the stories of how she was loved by her descamisados, or the shirtless ones, are infamous. The poor people loved her as their famous first lady, who built homes, hospitals, schools, and found jobs for thousands of Argentineans. She organized the Eva Peron Foundation, the Peronista Feminist Party, and gave women the right to vote. She won devoted fans for both her and her husband while she was in power. Juan Peron was becoming such a dictator that soon he needed Eva’s help in keeping the people loyal to him. Although fearful of many of Peron’s ideas, they were so willing to follow their Evita, that Peron remained in power. During Peron’s re-election rally in 1951, more than a million people stood calling for Eva until she accepted the nomination of vice president under Peron. After Eva’s death, the people remained just as loyal to her, although they quickly grew tired of Peron. The entire country mourned her death, and she is still celebrated as one of the best leaders of Argentina the poor have ever known. Despite how readily the poor of Argentina welcomed Eva as president, the higher social classes despised her. On a trip to Europe soon after becoming first lady, the pope denied her a title while in the Vatican. Several days later, on the same trip, the British royalty publicly refused to receive her in Buckingham palace. She was even insulted by the United States when Time magazine printed that she was an illegitimate child, for which the magazine was banned in Argentina for four months. Even in her own country, the higher classes opposed Evita. The Sociedad de Beneficencia, the group of aging social women who were in charge of Argentinean charities, was in the habit of making the first lady the honorary president. Eva did not receive this position, however, because the women claimed she had slept her way to power. In retaliation, Eva cut the societies funding. When Eva was popularly nominated for vice president by the people in 1951, she was ecstatic. The army, however, was not. Peron’s fellow officers had never agreed with the idea of a woman being as active as Eva in the politics of the country. Faced with the possibility that Eva would become the commander in chief of the army should something happen to Peron while Eva was holding the vice presidency, the army threatened to revolt. Peron told Eva to step down. As an illegitimate child, and mistress before wife of Peron, the beloved leader of the people of Argentina was never the less powerless against the people of the social status she could never truly claim.

Eva Peron was so famous that her legacy has extended even to today. In Argentina, masses are still celebrated for their famous leader, although she was never official designated as a Catholic martyr. And throughout the world, Eva’s legacy is being carried on by a famous musical, written by Andrew Lloyd Webber and Tim Rice, and a new movie, which can still be found in some theaters. Although Eva Peron has been called the most powerful Latin American woman of her time, perhaps ever, many people in North America and Europe had never heard of her. In 1973, renowned lyricist Tim Rice, already famous (and rich) from the musical Jesus Christ Superstar, was included in this group. Then, one day, Tim Rice happened to be listening to a BBC broadcast while driving his car, which was a radio show on Eva Peron. Since nothing else was on of interest, he listened to the program, and became fascinated by what he heard. He wasn’t sure, but he thought there was a chance for the story of Evita to be made into another musical. Rice’s next step was to call his old friend, Andrew Lloyd Webber. The two began to work on the musical. The musical opened in London in 1978, despite all the political controversy. Many people questioned the choice of writing a musical about Eva Peron, who was compared to Hitler, Stalin, and Mussolini. Yet through all the controversy about the subject matter, the reviews of the play itself, and especially the music, were fabulous. When the musical traveled to Broadway, with the opening in September of 1979, the political controversy which had so racked the London stage was prevented. Hal Prince, the director, persuaded the authors to play up the part of Che, Evita’s main counterpart. With her infamous opponent playing a part as important as hers, critics could no longer claim a problem with politics behind the play. Still, some scenes from the musical are touchy. As one person described, the first act ends with a “scene suggestive of one of Hitler’s Nuremberg rallies, in this instance presided over by a beaming Peron”. Still, even with all the controversy, the musical became famous, and can still be found on stages around the world today.

Another follow up to Evita’s life is the recent movie version of the musical, with Madonna playing the role of Eva Peron. The honor to play Eva was fought over by several actresses, including Meryl Streep, but given to Madonna when the similarities in their lives ( not to mention her letter to him, begging for the part) caught director Alan Parker’s eye. Madonna promised to play the part as no one else could, and to many it seems that she did so. She and Che, played by flashy Antonio Banderas, bring a passion to the movie may not have been there without them. In general, the movie is hailed as a supreme tribute to the life of Evita Peron, or as a failure. No matter what one thinks of the movie, however, it is undeniable that Eva’s primary fear, being forgotten, is far from occurring.

Bibliography

“Eva Peron.” Accessed December 10, 2007, from http://www.jlhs.nhusd.k12.ca.us/         classes/social_science/latin_america/Evita%20Web/Legacy.html