Tuesday, October 29, 2019
Economic environment effect on Build-a-Bear Essay
Economic environment effect on Build-a-Bear - Essay Example When consumers’ income decrease, then it is expected that their purchasing power will fall thus impacting on the brand negatively. For example, after the financial crisis of 2007/2007, consumers’ income fell remarkably in the United States as a result of closure of companies, laying down of workers and reduction of salaries of wages (Nanto Dick). As a result consumers were unable to spend money buying items in the manner they did before the financial crisis. This is what resulted in the decline in sales of the Build-a- bear company thus negatively affecting its brand. According to the company’s press release the company increased its sales remarkably in the first quarter of 2013 (yahoo finance). Other external factors that affected the company’s brand are savings, debts, employment and credit. All these factors were also greatly influenced by the financial crisis of 2007/2008 thus negatively affecting the company’s brand. This is due to the fact thi s industry dependent highly on consumers’ disposable income (Accuval). How Recent Stock Market Movements have Affected the Company Despite the economic crisis of 2007/2008, the United States of America economy has been recovering gradually. This has been as a result of the austerity and stimulus policies that have been adopted by the United States of America government (Weaver, 189). ... At the same time the company’s sales increased by1.4 dollars more than the previous quarter. This is a remarkable improvement considering the company was performing poorly after the financial crisis of 2007/2008. This is because consumers in the united Sates of America opted for imported toys and other commodities in the industry from countries such as china since they were at a cheaper price. Thus it can be concluded that the recent stock market movements have favored the company. Actions Has the Company been Taking in Response to these Developments and Trends In order to cope with the developments and trends in the economy, the company came up with a number of strategies. Firstly, the company introduced a store design that is new where the company introduced 11 stores which were newly imagined. These stores increased sales to 20 percent in the second quarter. The company expects that by 2013 it will have established the new store design in at least 30 locations and 25 more i n 2014. The company decided to reduce on operational costs by closing up 38 stores in 2012 and transferring the sales of these stores to other stores in the market. The company also remodeled it stores in order to save on cost by reducing the square footage occupied by the stores. It also moved to smaller premises in small malls. Build-a Bear also changed its approach to marketing and advertising in order to increase shopping frequency. The company did this by building their brand through television advertising in its markets in the United States of America 2012 mid October. It also rebalanced its marketing mix in Europe in order to retain existing customers and attract more consumers to their products. This has resulted in the company realizing
Sunday, October 27, 2019
The Goods Service Tax In Malaysia
The Goods Service Tax In Malaysia IS THE INTRODUCTION OF THE GOODS SERVICE TAX (GST) IN MALAYSIA GOOD OR BAD? Chapter 1 1.0 INTRODUCTION. In the new global economy, more companies are operating cross border, and as such are faced with the need to deal effectively with many different taxes, often in many different countries, each with different rates, ruling and application. Coupled with this, the regulatory environment is increasingly challenging. The IMF has been trying to push for all countries to adopt the Goods Service Tax (GST), or also known in certain countries as Value Added Tax (VAT), so as to create a more level playing field amongst trading nations. Direct taxes have in the past been used to camouflage à ¢Ã¢â€š ¬Ã‹Å"protectionism policy of certain countries. High tariff on certain product like motorcar has prevented healthy competition amongst trading nations. The general populations of that country are left without a choice but to consume the local products, as imported products have become more expensive with the high tariff. Often, because of this, the local products tend to be inferior in quality as the re is no real incentive to compete. In the 2005 Budget, the Government of Malaysia announced that GST will be implemented on Jan 1 2007 to replace the current sales and service tax (SST). Following public outcry, on 22 February 2006 it announced a deferment to allow lead time to businesses for potential changes in processes, development of software and personnel training. The first reading of the GST Bill was tabled in December 2009 and the second and third reading is expected in April 2010. The Prime Minister recently announced that the increase in revenue expected from the introduction of GST will be used mainly to finance the hike in Civil Servants salary and to finance other infrastructure works for the benefit of the nation at large. Problem Statement Is GST really needed for Malaysia? If so, how does it affect the general public and the country as a whole? The aim of this paper is to discuss and bring to attention the problems which we might face with the implementation of the GST, or if we are to remain status quo with the SST. Chapter 2 Literature review The Ministry of Finance presented the following information to highlight on GST. It stated that it would be part of the overall tax reform to overcome the inherent weaknesses in the SST and to reduce the reliance on revenue from direct taxes and petroleum. GST is a more efficient and effective tax system as it is self policing and has an in-build cross checking features. It enhances tax compliance and deals with less bureaucracy. It is also a more stable source of revenue compared to income tax and less susceptible to economic downturn due to the consumption nature of the tax. The main types of taxes are direct and indirect taxes. Direct taxes are: Corporate Tax, Personal Income Tax, Real Property Gains Tax and Stamp duty whilst indirect taxes are Tariff (or Customs Duty), Excise Tax, SST (currently practiced in Malaysia) and GST. Contribution from petroleum revenue to total revenue increased from 29.1% (1990) to 40.1% (2008). The current high petroleum revenue is not sustainable as it is a depleting resource therefore and alternative source have to be sought. With the present average birth rate of 2.2, it is expected that by 2030, 12% of the population will be above 60 years old which almost double the current number. The working population paying taxes will therefore reduce, putting a greater burden on a smaller group of people. GST is a broad-based tax that distributes the burden of taxation among a larger section of the population based on consumption. GST preserve the incentive to work and encourages enterprise as it is not a progressive income tax. The tax rate does not increase according to income level; it is flat at the determined rate. It is levied at the production and distribution stages, thereby incorporating a self-policing mechanism that facilitates administration and makes it more difficult to avoid or evade. This further reduces the possibility of revenue loss through understatement of tax evasion. The GST model implemented in Malaysia is not expected to have cascading, or pyramiding, effect as the tax on a particular good depends upon its final value, and not the number of production and distribution channel it passes through. Furthermore, the output tax to be paid will be offset against the input tax, and there is no GST levied over GST. GST is expected to provide a more stable source of revenue as consumption is less affected by economic cycles compared to income tax. It can be an effective tax on the à ¢Ã¢â€š ¬Ã‹Å"shadow economy, as those involved would consume, and thus pay indirect taxes through GST. It is likely that those involved in such activities would buy luxury goods, which would be subjected to GST. The government is cutting its operating expenditure for 2010 by 13%. This shows it is aware of the growing deficit that has widened due to the stimulus package. Recently, Fitch rating agency has cut the rating of the ringgit, which may cause imported inflation if it depreciates, and the International Monetary Fund commented that the GST needs to be implemented urgently. Malaysias budget 2010 reports on GST; is that, it is currently at the final stage of completing the study on the implementation, where analysts are measuring the social impact of its presence in Malaysia. The Malaysian government said that it could be possible for them to implement this in the near future. Looking at Malaysia in a broader scale, GST will not only affect big businesses, but small and medium enterprises (SME) as well. Although there were nimble of past information saying that a food outlet can only charge GST if its annual turnover is above RM3 million (3,000,000 Ringgit Malaysia), the GST compliance requirements and thresholds has not been officially announced. If we were to take into account GSTs implementation into goods and services, we have to assume that it will happen to all stages of the supply chain; which means from the purchase of raw materials or start-up goods all the way to end-user (consumer ready) products available for sale. Ultimately in a product, GSTs charged to every level are passed on to the next person and ultimately, the consumer. A Tax Review Panel was formed in middle of 2005, and it has come out with a Discussion Paper intended for businesses to understand the basic administrative requirements and procedures when GST is implemented so that they know the impact of GST. Secondly, the Tax Review Panel invites the business community and other relevant organizations and associations to review the proposal in that paper. Thirdly, by having a public consultation, it provides an appropriate forum for both the public and private institutions to exchange views with members of the Tax Review Panel so as to understand the rationale behind the proposals initiated. The GST was supposed to be implemented in Malaysia in the year 2007; however the government has to defer the move due to critical reviews by certain quarters. After losing four States to the opposition, it has to tread on a careful path in order not to lose more public support. It cannot afford to make any more major mistake in the wake of its dismal performance in the last General Election. GST is generally known as a tax system which results in regressivity (i.e. people with less pay a greater share of their resources than those with more), in contrast with the ideal aim of progressivity which is generally sought when implementing a tax. It is sometimes argued that a GST system does not work in a poor region such as Africa, where most countries have heavy external debt burdens, malnutrition, civil wars and lack of food and medicines which often result in inhuman living conditions. Nevertheless, with the support of the IMF, VAT/GST systems were designed in many African countries to combat or at least alleviate the adverse effect of VAT/GST regressivity by having a list of exemptions and zero-ratings which apply (generally speaking) to basic foodstuffs and other basic necessities. GST is not always simple to administer, contrary to what the advocates of GST would want countries to believe during the transformation stage. Unless a proper GST administration, supported by modern technology and electronic communication systems can be implemented, GST administration will inevitably be costly for both the Revenue Authorities and the business sector. The output/input mechanism of the GST system, coupled with GST refunds, may provide the ideal opportunity for fraud where corrupt officials and unscrupulous businesses exploit weaknesses in the system. This again results in a defensive attitude from the Revenue Authorities, resulting in bad communication, cash flow and other GST cost. In 1992, a Free Trade Agreement (FTA) was signed which reduced import tariffs between ASEAN member countries. In the first three years of the FTA, exports amongst the ASEAN countries grew from US$43 billion to US$80 billion. In 1997, the leaders of ASEAN adopted the vision to build a stable, prosperous and highly competitive economic region, in which there is a free flow of goods, services and investments, a freer flow of capital, equitable economic development and reduced poverty and socio-economic disparities. The plan is to remove all tariffs for the six more developed countries by 2010 and for all countries by 2015. The summit also progressed the efforts to integrate ASEAN with the much larger economies of Asia- Pacific, specifically China, Japan, South Korea, India, Australia, and New Zealand. China signed a pact to introduce the worlds largest free trade zone by 2010, covering almost two billion people. Japan signed a similar agreement to take effect by 2012. India agreed to join in by 2011. Australia and New Zealand have agreed to talks starting next year to free up trade within a decade. The master plan is to have a free trade zone that can compete with the US and EU. In South East Asia, Malaysia remains one of the few countries yet to adopt the GST system, which would indirectly be in the way, if we want to be part of this master plan. In Malaysia, it was announced that essential goods and services will not be subjected to GST, but fears that GST will spark a chain reaction that will increase the prices of most non-controlled items should not be dismissed. We have seen numerous examples of when there is an increase in a certain commodity; it sparks a price rise in most goods and services. For example, when the petrol price increased to RM2.70, prices of most goods, foods and services were hiked. But after the petrol price dropped, there has not been a substantial correction in the prices of goods, food and services. The relevant ministries are powerless to mitigate the situation and curb the necessary inflation. A recent example is on the removal of the subsidy on white bread resulting in price increase of one loaf of bread by 20 to 30 cents. The Deputy Domestic Trade, Cooperative Consumer Affairs Minister can only comment that the price adjustment was not necessary, urge traders to practice corporate social responsibility and call on the consumers to execute their power in hand. All these statements will not effectively curb excessive profiteering and traders taking opportunity to increase the price of goods and service. The public would want to know how the government intends to avoid the similar predicament What is GST and how does it work? GST is a consumption tax charged on a wide range of domestic international products, goods and services. Its a broad-based tax imposed on every level of a product, from raw materials all the way to finished goods. The proposed implementation of GST will replace the current Malaysian service tax and sales tax. Broadly, GST works by offsetting GST paid on purchases (input tax) against GST due on sales or supplies made (output tax). This is referred to as the credit offset mechanism. The multi tier stages of tax helps to ensure that GST paid by businesses for purchases does not end up being a permanent cost. However, the consumer ultimately bears the burden of the tax. Conceptually, GST is imposed on the value added to goods or services by each separate processor in the production and distribution chain. This can be seen in the simple illustration below. GST to Government RM 4 + RM2 = RM6 (i.e. 4% x RM 100) i.e.4% x RM 150 = RM6 Output tax i.e. 4%x150 Less RM4 Input tax RM2 Net 4% is the assumed standard rate of GST. It is assumed that the entire output is taxable and all input taxes are creditable. FINAL CONSUMER Cost to consumer = RM 156 SUPPLIER Selling price = RM100 GST(4%) = RM 4 Total = RM 104 MANUFACTURER Cost = RM 100 Value added = RM 50 Total = RM 150 GST (4%) = RM 6 Total = RM 156 2.1 SOME CONCERN ABOUT THE INTRODUCTION OF GST. There were some concerns that Malaysians could suffer even more with the introduction of the Goods and Services Tax (GST). GST-driven inflation would be a calamity that the struggling lower-income group could do without. The GST Bill was tabled in Parliament at the end of the Budget sitting that ended on 17 December 2009. At its first reading, the bill was just mentioned, but there was no explanation of the bill or any debate. The second reading is when the bill is open for debate and proposed amendments. This may come as early as March 2010 for the GST Bill. Once approved, the new tax can be implemented as early as 2011. The table below lists the governments tax revenue for 2008 which contributed RM112.9 billion or 70 per cent of total government revenue. Government Tax Revenue in 2008 Personal Income Tax            RM 15.0 bil Company Tax                        RM 37.7 bil Petroleum Tax                      RM 24.2 bil Export and import duties      RM  5.4 bil Excise duties                        RM 10.7 bil Sales and Services Tax        RM 11.7 bil As shown in the table, the biggest source of tax revenue is company tax, which at 26 per cent of declared profits, currently brings in RM37.7 billion into government coffers. Petroleum tax makes up the second biggest tax item while the tax levied on the 1.5 million individuals who are now currently paying personal income taxes in Malaysia makes up the third biggest. All these taxes are deemed progressive for they tax the richest individuals and the companies that are making profits. Progressive taxes do not burden the poorer sectors of society. Progressive taxes tend to equal out income differences between the rich and the poor in society. It was argued that regressive tax regimes, on the other hand, burden the poor. Sales taxes are generally regressive as they tax consumption and not income. But sales tax in Malaysia has different rates for different types of goods and the government can make them less regressive by levying sales taxes exclusively on good that are consumed by the richer sectors of society such as expensive cars, big houses, overseas travel, expensive restaurants and other luxury items. The Goods and Services Tax, however, is perceived to be even more regressive for it is levied at a flat rate on a very wide range of products including many items that the poorer people need to buy. It might lead to a rise in prices and would definitely hit the poorest the hardest. As in most countries with the GST in place, a reduction of corporate tax and personal tax will follow suit. This then, is seen as the real reason that the GST is being brought in à ¢Ã¢â€š ¬Ã¢â‚¬Å" to make Malaysia more business friendlyà ¢Ã¢â€š ¬? by cutting corporate tax (which has already been reduced markedly from the 40 per cent level in 1988 to its current 26 per cent). 2.2 LACK OF INFORMATION AND CONFUSION ON GST. The piecemeal release of information is creating great concern among the people and in the business sector. For example; Will the authorities furnish an extensive list of item that will be charged GST, and what will be exempted? If a product, like rice or chicken is exempted, does the exemption apply across the board regardless of the form of the product? For example, is cooked rice or cut, frozen or marinated chicken also exempted? What is the difference between exempt and zero-rated GST? Will there be any reduction in personal and corporate tax? What changes will be made to the sales and service tax? There is a perception that as GST is a multistage tax, it would result in higher effective tax rate than 4%. As GST is very technical, most people are unaware how it will impact them. When will the GST rate be reviewed? Recent media statement on its impact did not improve opinion on the introduction of GST. It is reported that under the sales and services tax system, the burden on the poor is 2.38%, but under the GST it will be 2.17%. For the higher income group, the tax burden will be reduced from 13% to 2.74%, according to the Finance Ministry. The overall savings for households will be between RM14.52 and RM346.92 yearly. This clearly contradicts other statement from politicians, and the public perception, that the GST will be inflationary. But as no further details are provided on how the savings are arrived at, public sentiment remains negative on GST. CHAPTER 3 EXPECTED IMPACT OF GST 3.1 Impact on the people in the street. The public is generally concerned that the introduction of GST will hit their wallets directly. In an initial assessment, as the GST is expected to be lower than service tax, the bill for a restaurant meal will be 1% lower as the service tax rate is 5% and GST is 4%. For other services liable to service tax, a GST rate lower than service tax should result in a slight decrease in charges if the cost of the other components in providing the service remain the same. On goods that attract sales tax, the current rate seems higher than the proposed GST, hence there might be a reduction if there is no further adjustment. Current rates are as follows; à ¢Ã¢â€š ¬Ã‚ ¢ Fruits, certain foodstuff and building materials (5%) à ¢Ã¢â€š ¬Ã‚ ¢ General goods, including motor vehicle (10%) à ¢Ã¢â€š ¬Ã‚ ¢ Liquor and alcoholic drinks (20%) à ¢Ã¢â€š ¬Ã‚ ¢ Cigarette and cheroots (25%) For hawkers; even though they do not have a turnover of RM500,000 yearly, so are not required collect GST, the material procured, for example, noodles, fish balls, processed meat, chicken, equipments for the stall may be subjected to GST, resulting in price hike. But without detailed knowledge or mapping, or even information on the duties charged, the people are uncertain whether the prices of goods and services will remain stagnant, increase or decrease. 3.2 IMPACT ON BUSINESSES. The implementation of GST is expected to impact business in the following manner: Compliance costs are expected to be incurred as there is requirement to track the input tax and output tax to determine refund or tax to be submitted. Even though some Malaysian companies are already paying sales tax or service tax, there was no input tax to be monitored and accounted for to offset against output tax. Business process and procurement need to be mapped out, especially with respect to suppliers and promotional items. For example, a new car attract GST, but items provided for free during promotion like sports rims or a GPS system à ¢Ã¢â€š ¬Ã¢â‚¬Å" may not be eligible for an input tax claim. Likewise the corporate souvenirs and hampers given out by businesses may not be eligible. The procurement department should start detailing the sales tax or the existing tax paid for their items used a raw material. As the GST is expected to be lower than most current indirect tax, there should be some potential cost savings. This is also to avoid being overcharged by supplier that intends to add the GST over the existing price of its supplies after sales tax, there should be some potential cost saving. Human resource factor: New staff may need to be employed to ensure a business is compliant and conversant with the GST requirement. As most staff have not been exposed to GST, training needs to be conducted. Accounting system and account payable: The business would require an appropriate accounting system to keep track of the GST amounts. Most systems could be upgraded, and it is important to notify software vendors to test run the data to avoid any potential complication. Cash flow management: Businesses should be aware that output GST may have to be settled before settlement of sales invoices by customer. Meanwhile, payables on which input tax has been claimed but remains unpaid after six months have to be accounted as output tax and are to be reclaimed as input tax only after payment is made. Businesses are concerned about the timeliness of the refund process as delays would results in a higher working capital cost. In addition, businesses that have thin margins are worried about the speed of the refund for input tax, especially if the business is mainly exported-oriented and procure its raw material locally. 3.3 OTHER IMPACTS: The expected impact on corporate and income taxes are as published in the news recently. Deputy Finance Minister Chor Chee Heung quoted that Malaysia will see a gradual reduction in its corporate and income tax rates once the proposed Goods and Services Tax (GST) is in place by mid-2011. He does not think that there was a timeline for achieving this reduction in corporate and income taxes, as this is a long-term objective of the government. Once the GST come into play, it will be a broad based tax and the trend is, once GST is implemented, corporate and income taxes will gradually be reduced. Chor also disclosed that businesses related to services such as those in the food and transportation sectors, would be exempted from the proposed GST. He gave assurance that the cost of living and lifestyle of the people would not increase or be affected with the implementation of a GST. He also added that the implementation of GST would not cause inflation. Once the GST is in, the service tax and sales tax (now imposed) would be abolished. Both taxes are quite high at 10 per cent and five per cent respectively. The GST at four per cent is considered very low. Meanwhile, the Finance Ministrys Tax Review Panel Chairman, Ms. Kamariah Hussain, said there would be revenue gains of about 1.0 Billion Ringgit for the government with the GST implementation. She explained that the introduction of the GST was part of an overall tax reform in the country. With the GST, the government would have a better mix of revenue, and not be too dependent on income tax and petroleum income. Second Finance Minister, Ahmad Husni Hanadzlah had indicated that while the GST would replace the existing sales and services taxes, it would not put pressure on prices and to ease the burden of consumers, staple foods such as rice, sugar, cooking oil and flour would be exempted from it. 3.3.1 IMPACT OF GST ON SMALL MEDIUM ENTERPRISE (SME). SMEs form the backbone of the business activities of a nation. Other than encouraging the growth of new industries such as tourism and biotechnology-based industries, the Government (2004 Budget Proposals) too has singled out SMEs to spearhead domestic growth. However, there is a group of à ¢Ã¢â€š ¬Ã‹Å"unhappy people representing non-governmental organizations (NGOs) and the public who have expressed their non-approval for the introduction of the proposed GST. Their main argument is that GST favours the rich and burdens the poor at large. Their contention is that it will burden the people and contribute to the widening gap between the rich and the poor, not to mention the rise in the inflation rateà ¢Ã¢â€š ¬?. However, tax practitioner, Beh Tok Koay is of the opinion that perhaps this small group lacks an understanding of the whole system of GST. It is supposed to be broadbased and will replace the service and sales tax system, and this in turn will help to reduce income tax ratesà ¢Ã¢â€š ¬?. There could be two GST rates: a lower rate for SMEs and a higher rate for large enterprises. Imposing two GST rates is, however, difficult to administer as they provide ample room for tax avoidance and increase compliance cost. Lowering the compliance cost of GST would ease the burden of SMEs. If there is convincing data to show that the compliance cost of SMEs are lower if the accounts are computerized, then the Government could provide software packages to the licensees to enable them to correctly compute GST. Free training and seminars including visits should be extended to SMEs to enable them to have a better understanding of the compliance requirements. One other option is to exempt small busine sses from GST altogether but such a decision too has its drawbacks. The Government has to analyze the revenue gain as compared to the compliance cost before making a decision to determine the threshold limit. With the two-year window period before GST is in force, all of us have a role to play in contributing towards the development of a better broad-based consumption tax system which ultimately would help reduce the rates of income tax. No doubt, everyone especially the SMEs will eagerly await the final introduction of the GST system and the extent of the expected income tax rate cuts. The business community, NGO and charity organization are concerned about the ability of the authorities to implement GST smoothly. Australia, for example, had to bring in foreign experts to help in rollout of GST. It would undermine investor confidence if the GST is not implemented in a structured manner with minimal hiccup. Burdening the poor and those economically vulnerable: Some 32% of the household in Malaysia have an income under RM2,000 per month. The introduction of GST without the necessary revamp of subsidies will result in a heavier financial burden on poor and low-income families. Families with an income below RM2,000 a month do not have to pay personal income tax. With GST, things that are not basic necessities toys, processed food, can food, packet drinks, and so on, could increase existing inflationary pressures. The ongoing restructuring of the subsidy will also create the tension, discomfort and dissatisfaction as people eligible for subsidy could unintentionally be left out as the government establishes and tries to refine its method of distribution. CHAPTER 4 4.0 CONCLUSION GST is unavoidable. It will just be a matter of time when it will be implemented. It may not be a perfect system, but has worked well as a revenue base for other countries. Malaysias problem may lie more in public education, implementation and enforcement. To move forward, Malaysia has to conform to the free trade vision of ASEAN and cannot lag behind the other countries. As of today, apart from Malaysia, only Myanmar and Brunei has yet to implement the GST. GST modernises the tax system by addressing tax evasion committed by free riders who want every benefit but refuse to pay for it, or rather have others to pay for them. GST will certainly be a good platform to increase the Governments revenue. Concerns of it being regressive can be overcome by careful and prudent classifications of zero rated supplies and exempt supplies for essential items as against standard supplies for non essential and luxury items. One good point of starting late is the ability to learn from the mistakes of others. The government has to be fully transparent in the implementation of the proposed GST. In this borderless world, news and knowledge cannot be curbed. The masses are getting more intelligent and informed. It will not be prudent for the government of the day not to move forward towards a more modern tax system. Rather than blind opposition, critics should provide examples and lessons learnt from the weaknesses of other nations in the implementation of GST or VAT. However, based from past experience, the skeptism voiced is understandable. We have heard of past Auditor General Reports on the wastage and the leakage of public funds into the pockets of the well connected; of RM 25 screw drivers being bought through tender at a price of RM200; commissions running into millions of ringgit for the purchase of Sukhov jets and submarines; and billions swallowed in the PKFZ scandal. The sums involved are astronomical. Then we have newly built hospitals that cannot be used, court room complexes with leaked ceilings and stadium roofs that collapsed in the absence of even a small earthquake. So, whether the GST will finally proved to be good or bad for the country will remain a question mark until its actual implementation. The actual salary increase as promised by the government might not be the expected pot of gold at the end of the rainbow if the GST is not properly implemented. The Goods Service Tax In Malaysia The Goods Service Tax In Malaysia IS THE INTRODUCTION OF THE GOODS SERVICE TAX (GST) IN MALAYSIA GOOD OR BAD? Chapter 1 1.0 INTRODUCTION. In the new global economy, more companies are operating cross border, and as such are faced with the need to deal effectively with many different taxes, often in many different countries, each with different rates, ruling and application. Coupled with this, the regulatory environment is increasingly challenging. The IMF has been trying to push for all countries to adopt the Goods Service Tax (GST), or also known in certain countries as Value Added Tax (VAT), so as to create a more level playing field amongst trading nations. Direct taxes have in the past been used to camouflage à ¢Ã¢â€š ¬Ã‹Å"protectionism policy of certain countries. High tariff on certain product like motorcar has prevented healthy competition amongst trading nations. The general populations of that country are left without a choice but to consume the local products, as imported products have become more expensive with the high tariff. Often, because of this, the local products tend to be inferior in quality as the re is no real incentive to compete. In the 2005 Budget, the Government of Malaysia announced that GST will be implemented on Jan 1 2007 to replace the current sales and service tax (SST). Following public outcry, on 22 February 2006 it announced a deferment to allow lead time to businesses for potential changes in processes, development of software and personnel training. The first reading of the GST Bill was tabled in December 2009 and the second and third reading is expected in April 2010. The Prime Minister recently announced that the increase in revenue expected from the introduction of GST will be used mainly to finance the hike in Civil Servants salary and to finance other infrastructure works for the benefit of the nation at large. Problem Statement Is GST really needed for Malaysia? If so, how does it affect the general public and the country as a whole? The aim of this paper is to discuss and bring to attention the problems which we might face with the implementation of the GST, or if we are to remain status quo with the SST. Chapter 2 Literature review The Ministry of Finance presented the following information to highlight on GST. It stated that it would be part of the overall tax reform to overcome the inherent weaknesses in the SST and to reduce the reliance on revenue from direct taxes and petroleum. GST is a more efficient and effective tax system as it is self policing and has an in-build cross checking features. It enhances tax compliance and deals with less bureaucracy. It is also a more stable source of revenue compared to income tax and less susceptible to economic downturn due to the consumption nature of the tax. The main types of taxes are direct and indirect taxes. Direct taxes are: Corporate Tax, Personal Income Tax, Real Property Gains Tax and Stamp duty whilst indirect taxes are Tariff (or Customs Duty), Excise Tax, SST (currently practiced in Malaysia) and GST. Contribution from petroleum revenue to total revenue increased from 29.1% (1990) to 40.1% (2008). The current high petroleum revenue is not sustainable as it is a depleting resource therefore and alternative source have to be sought. With the present average birth rate of 2.2, it is expected that by 2030, 12% of the population will be above 60 years old which almost double the current number. The working population paying taxes will therefore reduce, putting a greater burden on a smaller group of people. GST is a broad-based tax that distributes the burden of taxation among a larger section of the population based on consumption. GST preserve the incentive to work and encourages enterprise as it is not a progressive income tax. The tax rate does not increase according to income level; it is flat at the determined rate. It is levied at the production and distribution stages, thereby incorporating a self-policing mechanism that facilitates administration and makes it more difficult to avoid or evade. This further reduces the possibility of revenue loss through understatement of tax evasion. The GST model implemented in Malaysia is not expected to have cascading, or pyramiding, effect as the tax on a particular good depends upon its final value, and not the number of production and distribution channel it passes through. Furthermore, the output tax to be paid will be offset against the input tax, and there is no GST levied over GST. GST is expected to provide a more stable source of revenue as consumption is less affected by economic cycles compared to income tax. It can be an effective tax on the à ¢Ã¢â€š ¬Ã‹Å"shadow economy, as those involved would consume, and thus pay indirect taxes through GST. It is likely that those involved in such activities would buy luxury goods, which would be subjected to GST. The government is cutting its operating expenditure for 2010 by 13%. This shows it is aware of the growing deficit that has widened due to the stimulus package. Recently, Fitch rating agency has cut the rating of the ringgit, which may cause imported inflation if it depreciates, and the International Monetary Fund commented that the GST needs to be implemented urgently. Malaysias budget 2010 reports on GST; is that, it is currently at the final stage of completing the study on the implementation, where analysts are measuring the social impact of its presence in Malaysia. The Malaysian government said that it could be possible for them to implement this in the near future. Looking at Malaysia in a broader scale, GST will not only affect big businesses, but small and medium enterprises (SME) as well. Although there were nimble of past information saying that a food outlet can only charge GST if its annual turnover is above RM3 million (3,000,000 Ringgit Malaysia), the GST compliance requirements and thresholds has not been officially announced. If we were to take into account GSTs implementation into goods and services, we have to assume that it will happen to all stages of the supply chain; which means from the purchase of raw materials or start-up goods all the way to end-user (consumer ready) products available for sale. Ultimately in a product, GSTs charged to every level are passed on to the next person and ultimately, the consumer. A Tax Review Panel was formed in middle of 2005, and it has come out with a Discussion Paper intended for businesses to understand the basic administrative requirements and procedures when GST is implemented so that they know the impact of GST. Secondly, the Tax Review Panel invites the business community and other relevant organizations and associations to review the proposal in that paper. Thirdly, by having a public consultation, it provides an appropriate forum for both the public and private institutions to exchange views with members of the Tax Review Panel so as to understand the rationale behind the proposals initiated. The GST was supposed to be implemented in Malaysia in the year 2007; however the government has to defer the move due to critical reviews by certain quarters. After losing four States to the opposition, it has to tread on a careful path in order not to lose more public support. It cannot afford to make any more major mistake in the wake of its dismal performance in the last General Election. GST is generally known as a tax system which results in regressivity (i.e. people with less pay a greater share of their resources than those with more), in contrast with the ideal aim of progressivity which is generally sought when implementing a tax. It is sometimes argued that a GST system does not work in a poor region such as Africa, where most countries have heavy external debt burdens, malnutrition, civil wars and lack of food and medicines which often result in inhuman living conditions. Nevertheless, with the support of the IMF, VAT/GST systems were designed in many African countries to combat or at least alleviate the adverse effect of VAT/GST regressivity by having a list of exemptions and zero-ratings which apply (generally speaking) to basic foodstuffs and other basic necessities. GST is not always simple to administer, contrary to what the advocates of GST would want countries to believe during the transformation stage. Unless a proper GST administration, supported by modern technology and electronic communication systems can be implemented, GST administration will inevitably be costly for both the Revenue Authorities and the business sector. The output/input mechanism of the GST system, coupled with GST refunds, may provide the ideal opportunity for fraud where corrupt officials and unscrupulous businesses exploit weaknesses in the system. This again results in a defensive attitude from the Revenue Authorities, resulting in bad communication, cash flow and other GST cost. In 1992, a Free Trade Agreement (FTA) was signed which reduced import tariffs between ASEAN member countries. In the first three years of the FTA, exports amongst the ASEAN countries grew from US$43 billion to US$80 billion. In 1997, the leaders of ASEAN adopted the vision to build a stable, prosperous and highly competitive economic region, in which there is a free flow of goods, services and investments, a freer flow of capital, equitable economic development and reduced poverty and socio-economic disparities. The plan is to remove all tariffs for the six more developed countries by 2010 and for all countries by 2015. The summit also progressed the efforts to integrate ASEAN with the much larger economies of Asia- Pacific, specifically China, Japan, South Korea, India, Australia, and New Zealand. China signed a pact to introduce the worlds largest free trade zone by 2010, covering almost two billion people. Japan signed a similar agreement to take effect by 2012. India agreed to join in by 2011. Australia and New Zealand have agreed to talks starting next year to free up trade within a decade. The master plan is to have a free trade zone that can compete with the US and EU. In South East Asia, Malaysia remains one of the few countries yet to adopt the GST system, which would indirectly be in the way, if we want to be part of this master plan. In Malaysia, it was announced that essential goods and services will not be subjected to GST, but fears that GST will spark a chain reaction that will increase the prices of most non-controlled items should not be dismissed. We have seen numerous examples of when there is an increase in a certain commodity; it sparks a price rise in most goods and services. For example, when the petrol price increased to RM2.70, prices of most goods, foods and services were hiked. But after the petrol price dropped, there has not been a substantial correction in the prices of goods, food and services. The relevant ministries are powerless to mitigate the situation and curb the necessary inflation. A recent example is on the removal of the subsidy on white bread resulting in price increase of one loaf of bread by 20 to 30 cents. The Deputy Domestic Trade, Cooperative Consumer Affairs Minister can only comment that the price adjustment was not necessary, urge traders to practice corporate social responsibility and call on the consumers to execute their power in hand. All these statements will not effectively curb excessive profiteering and traders taking opportunity to increase the price of goods and service. The public would want to know how the government intends to avoid the similar predicament What is GST and how does it work? GST is a consumption tax charged on a wide range of domestic international products, goods and services. Its a broad-based tax imposed on every level of a product, from raw materials all the way to finished goods. The proposed implementation of GST will replace the current Malaysian service tax and sales tax. Broadly, GST works by offsetting GST paid on purchases (input tax) against GST due on sales or supplies made (output tax). This is referred to as the credit offset mechanism. The multi tier stages of tax helps to ensure that GST paid by businesses for purchases does not end up being a permanent cost. However, the consumer ultimately bears the burden of the tax. Conceptually, GST is imposed on the value added to goods or services by each separate processor in the production and distribution chain. This can be seen in the simple illustration below. GST to Government RM 4 + RM2 = RM6 (i.e. 4% x RM 100) i.e.4% x RM 150 = RM6 Output tax i.e. 4%x150 Less RM4 Input tax RM2 Net 4% is the assumed standard rate of GST. It is assumed that the entire output is taxable and all input taxes are creditable. FINAL CONSUMER Cost to consumer = RM 156 SUPPLIER Selling price = RM100 GST(4%) = RM 4 Total = RM 104 MANUFACTURER Cost = RM 100 Value added = RM 50 Total = RM 150 GST (4%) = RM 6 Total = RM 156 2.1 SOME CONCERN ABOUT THE INTRODUCTION OF GST. There were some concerns that Malaysians could suffer even more with the introduction of the Goods and Services Tax (GST). GST-driven inflation would be a calamity that the struggling lower-income group could do without. The GST Bill was tabled in Parliament at the end of the Budget sitting that ended on 17 December 2009. At its first reading, the bill was just mentioned, but there was no explanation of the bill or any debate. The second reading is when the bill is open for debate and proposed amendments. This may come as early as March 2010 for the GST Bill. Once approved, the new tax can be implemented as early as 2011. The table below lists the governments tax revenue for 2008 which contributed RM112.9 billion or 70 per cent of total government revenue. Government Tax Revenue in 2008 Personal Income Tax            RM 15.0 bil Company Tax                        RM 37.7 bil Petroleum Tax                      RM 24.2 bil Export and import duties      RM  5.4 bil Excise duties                        RM 10.7 bil Sales and Services Tax        RM 11.7 bil As shown in the table, the biggest source of tax revenue is company tax, which at 26 per cent of declared profits, currently brings in RM37.7 billion into government coffers. Petroleum tax makes up the second biggest tax item while the tax levied on the 1.5 million individuals who are now currently paying personal income taxes in Malaysia makes up the third biggest. All these taxes are deemed progressive for they tax the richest individuals and the companies that are making profits. Progressive taxes do not burden the poorer sectors of society. Progressive taxes tend to equal out income differences between the rich and the poor in society. It was argued that regressive tax regimes, on the other hand, burden the poor. Sales taxes are generally regressive as they tax consumption and not income. But sales tax in Malaysia has different rates for different types of goods and the government can make them less regressive by levying sales taxes exclusively on good that are consumed by the richer sectors of society such as expensive cars, big houses, overseas travel, expensive restaurants and other luxury items. The Goods and Services Tax, however, is perceived to be even more regressive for it is levied at a flat rate on a very wide range of products including many items that the poorer people need to buy. It might lead to a rise in prices and would definitely hit the poorest the hardest. As in most countries with the GST in place, a reduction of corporate tax and personal tax will follow suit. This then, is seen as the real reason that the GST is being brought in à ¢Ã¢â€š ¬Ã¢â‚¬Å" to make Malaysia more business friendlyà ¢Ã¢â€š ¬? by cutting corporate tax (which has already been reduced markedly from the 40 per cent level in 1988 to its current 26 per cent). 2.2 LACK OF INFORMATION AND CONFUSION ON GST. The piecemeal release of information is creating great concern among the people and in the business sector. For example; Will the authorities furnish an extensive list of item that will be charged GST, and what will be exempted? If a product, like rice or chicken is exempted, does the exemption apply across the board regardless of the form of the product? For example, is cooked rice or cut, frozen or marinated chicken also exempted? What is the difference between exempt and zero-rated GST? Will there be any reduction in personal and corporate tax? What changes will be made to the sales and service tax? There is a perception that as GST is a multistage tax, it would result in higher effective tax rate than 4%. As GST is very technical, most people are unaware how it will impact them. When will the GST rate be reviewed? Recent media statement on its impact did not improve opinion on the introduction of GST. It is reported that under the sales and services tax system, the burden on the poor is 2.38%, but under the GST it will be 2.17%. For the higher income group, the tax burden will be reduced from 13% to 2.74%, according to the Finance Ministry. The overall savings for households will be between RM14.52 and RM346.92 yearly. This clearly contradicts other statement from politicians, and the public perception, that the GST will be inflationary. But as no further details are provided on how the savings are arrived at, public sentiment remains negative on GST. CHAPTER 3 EXPECTED IMPACT OF GST 3.1 Impact on the people in the street. The public is generally concerned that the introduction of GST will hit their wallets directly. In an initial assessment, as the GST is expected to be lower than service tax, the bill for a restaurant meal will be 1% lower as the service tax rate is 5% and GST is 4%. For other services liable to service tax, a GST rate lower than service tax should result in a slight decrease in charges if the cost of the other components in providing the service remain the same. On goods that attract sales tax, the current rate seems higher than the proposed GST, hence there might be a reduction if there is no further adjustment. Current rates are as follows; à ¢Ã¢â€š ¬Ã‚ ¢ Fruits, certain foodstuff and building materials (5%) à ¢Ã¢â€š ¬Ã‚ ¢ General goods, including motor vehicle (10%) à ¢Ã¢â€š ¬Ã‚ ¢ Liquor and alcoholic drinks (20%) à ¢Ã¢â€š ¬Ã‚ ¢ Cigarette and cheroots (25%) For hawkers; even though they do not have a turnover of RM500,000 yearly, so are not required collect GST, the material procured, for example, noodles, fish balls, processed meat, chicken, equipments for the stall may be subjected to GST, resulting in price hike. But without detailed knowledge or mapping, or even information on the duties charged, the people are uncertain whether the prices of goods and services will remain stagnant, increase or decrease. 3.2 IMPACT ON BUSINESSES. The implementation of GST is expected to impact business in the following manner: Compliance costs are expected to be incurred as there is requirement to track the input tax and output tax to determine refund or tax to be submitted. Even though some Malaysian companies are already paying sales tax or service tax, there was no input tax to be monitored and accounted for to offset against output tax. Business process and procurement need to be mapped out, especially with respect to suppliers and promotional items. For example, a new car attract GST, but items provided for free during promotion like sports rims or a GPS system à ¢Ã¢â€š ¬Ã¢â‚¬Å" may not be eligible for an input tax claim. Likewise the corporate souvenirs and hampers given out by businesses may not be eligible. The procurement department should start detailing the sales tax or the existing tax paid for their items used a raw material. As the GST is expected to be lower than most current indirect tax, there should be some potential cost savings. This is also to avoid being overcharged by supplier that intends to add the GST over the existing price of its supplies after sales tax, there should be some potential cost saving. Human resource factor: New staff may need to be employed to ensure a business is compliant and conversant with the GST requirement. As most staff have not been exposed to GST, training needs to be conducted. Accounting system and account payable: The business would require an appropriate accounting system to keep track of the GST amounts. Most systems could be upgraded, and it is important to notify software vendors to test run the data to avoid any potential complication. Cash flow management: Businesses should be aware that output GST may have to be settled before settlement of sales invoices by customer. Meanwhile, payables on which input tax has been claimed but remains unpaid after six months have to be accounted as output tax and are to be reclaimed as input tax only after payment is made. Businesses are concerned about the timeliness of the refund process as delays would results in a higher working capital cost. In addition, businesses that have thin margins are worried about the speed of the refund for input tax, especially if the business is mainly exported-oriented and procure its raw material locally. 3.3 OTHER IMPACTS: The expected impact on corporate and income taxes are as published in the news recently. Deputy Finance Minister Chor Chee Heung quoted that Malaysia will see a gradual reduction in its corporate and income tax rates once the proposed Goods and Services Tax (GST) is in place by mid-2011. He does not think that there was a timeline for achieving this reduction in corporate and income taxes, as this is a long-term objective of the government. Once the GST come into play, it will be a broad based tax and the trend is, once GST is implemented, corporate and income taxes will gradually be reduced. Chor also disclosed that businesses related to services such as those in the food and transportation sectors, would be exempted from the proposed GST. He gave assurance that the cost of living and lifestyle of the people would not increase or be affected with the implementation of a GST. He also added that the implementation of GST would not cause inflation. Once the GST is in, the service tax and sales tax (now imposed) would be abolished. Both taxes are quite high at 10 per cent and five per cent respectively. The GST at four per cent is considered very low. Meanwhile, the Finance Ministrys Tax Review Panel Chairman, Ms. Kamariah Hussain, said there would be revenue gains of about 1.0 Billion Ringgit for the government with the GST implementation. She explained that the introduction of the GST was part of an overall tax reform in the country. With the GST, the government would have a better mix of revenue, and not be too dependent on income tax and petroleum income. Second Finance Minister, Ahmad Husni Hanadzlah had indicated that while the GST would replace the existing sales and services taxes, it would not put pressure on prices and to ease the burden of consumers, staple foods such as rice, sugar, cooking oil and flour would be exempted from it. 3.3.1 IMPACT OF GST ON SMALL MEDIUM ENTERPRISE (SME). SMEs form the backbone of the business activities of a nation. Other than encouraging the growth of new industries such as tourism and biotechnology-based industries, the Government (2004 Budget Proposals) too has singled out SMEs to spearhead domestic growth. However, there is a group of à ¢Ã¢â€š ¬Ã‹Å"unhappy people representing non-governmental organizations (NGOs) and the public who have expressed their non-approval for the introduction of the proposed GST. Their main argument is that GST favours the rich and burdens the poor at large. Their contention is that it will burden the people and contribute to the widening gap between the rich and the poor, not to mention the rise in the inflation rateà ¢Ã¢â€š ¬?. However, tax practitioner, Beh Tok Koay is of the opinion that perhaps this small group lacks an understanding of the whole system of GST. It is supposed to be broadbased and will replace the service and sales tax system, and this in turn will help to reduce income tax ratesà ¢Ã¢â€š ¬?. There could be two GST rates: a lower rate for SMEs and a higher rate for large enterprises. Imposing two GST rates is, however, difficult to administer as they provide ample room for tax avoidance and increase compliance cost. Lowering the compliance cost of GST would ease the burden of SMEs. If there is convincing data to show that the compliance cost of SMEs are lower if the accounts are computerized, then the Government could provide software packages to the licensees to enable them to correctly compute GST. Free training and seminars including visits should be extended to SMEs to enable them to have a better understanding of the compliance requirements. One other option is to exempt small busine sses from GST altogether but such a decision too has its drawbacks. The Government has to analyze the revenue gain as compared to the compliance cost before making a decision to determine the threshold limit. With the two-year window period before GST is in force, all of us have a role to play in contributing towards the development of a better broad-based consumption tax system which ultimately would help reduce the rates of income tax. No doubt, everyone especially the SMEs will eagerly await the final introduction of the GST system and the extent of the expected income tax rate cuts. The business community, NGO and charity organization are concerned about the ability of the authorities to implement GST smoothly. Australia, for example, had to bring in foreign experts to help in rollout of GST. It would undermine investor confidence if the GST is not implemented in a structured manner with minimal hiccup. Burdening the poor and those economically vulnerable: Some 32% of the household in Malaysia have an income under RM2,000 per month. The introduction of GST without the necessary revamp of subsidies will result in a heavier financial burden on poor and low-income families. Families with an income below RM2,000 a month do not have to pay personal income tax. With GST, things that are not basic necessities toys, processed food, can food, packet drinks, and so on, could increase existing inflationary pressures. The ongoing restructuring of the subsidy will also create the tension, discomfort and dissatisfaction as people eligible for subsidy could unintentionally be left out as the government establishes and tries to refine its method of distribution. CHAPTER 4 4.0 CONCLUSION GST is unavoidable. It will just be a matter of time when it will be implemented. It may not be a perfect system, but has worked well as a revenue base for other countries. Malaysias problem may lie more in public education, implementation and enforcement. To move forward, Malaysia has to conform to the free trade vision of ASEAN and cannot lag behind the other countries. As of today, apart from Malaysia, only Myanmar and Brunei has yet to implement the GST. GST modernises the tax system by addressing tax evasion committed by free riders who want every benefit but refuse to pay for it, or rather have others to pay for them. GST will certainly be a good platform to increase the Governments revenue. Concerns of it being regressive can be overcome by careful and prudent classifications of zero rated supplies and exempt supplies for essential items as against standard supplies for non essential and luxury items. One good point of starting late is the ability to learn from the mistakes of others. The government has to be fully transparent in the implementation of the proposed GST. In this borderless world, news and knowledge cannot be curbed. The masses are getting more intelligent and informed. It will not be prudent for the government of the day not to move forward towards a more modern tax system. Rather than blind opposition, critics should provide examples and lessons learnt from the weaknesses of other nations in the implementation of GST or VAT. However, based from past experience, the skeptism voiced is understandable. We have heard of past Auditor General Reports on the wastage and the leakage of public funds into the pockets of the well connected; of RM 25 screw drivers being bought through tender at a price of RM200; commissions running into millions of ringgit for the purchase of Sukhov jets and submarines; and billions swallowed in the PKFZ scandal. The sums involved are astronomical. Then we have newly built hospitals that cannot be used, court room complexes with leaked ceilings and stadium roofs that collapsed in the absence of even a small earthquake. So, whether the GST will finally proved to be good or bad for the country will remain a question mark until its actual implementation. The actual salary increase as promised by the government might not be the expected pot of gold at the end of the rainbow if the GST is not properly implemented.
Friday, October 25, 2019
Stereotypes about Homelessness in America in Dumpster Diving by Lars Ei
Stereotypes about Homelessness in America in Dumpster Diving by Lars Eighner Lars Eighner's short essay, "Dumpster Diving," reveals the stereotypes about homelessness in America. In order to confirm these known stereotypes about American culture, Eighner includes autobiographical accounts of the economically inferior class, as well as revealing his elitist rules that governs the life of a homeless person. According to Eighner, homeless people fall into the following categories, 'can scroungers', 'Dumpster divers', and 'scavengers.' (Eighner, 1993). In addition, Eighner's blatant demonstration of his superiority to the people he scavenges from reveals his true character of snobbery. Although Eighner reveals that his chosen lifestyle was to live on another's refuge, he kept in accordance with his acts of superiority and snobbishness by excluding himself from the term "Dumpster Diving." Instead, he preferred to be called a "scavenger because of its frankness in the term." (Eighner, 1993). Furthermore, Eighner, explains that there are rules to abide by when successfully "scavenging" through dumpsters, "using the senses†¦knowing the dumpsters of a given area†¦. [and] Why was this discarded?" It is the explanation of the three guidelines Eighner asserts to be superior to 'can scroungers' (Homeless people who rummage through the dumpsters for money). The author further elaborates his snobbishness by revealing that he has tried the heinous lifestyle of "can scroungers," and deduced that only a few dollars could be obtained. Moreover, Eighner states, "one can extract the necessities of life from the dumpsters directly with far less effort than would be requir ed to accumulate the equivalent of cans." (Eighner, 1993). The author stereoty... ...ghner, 1993). It is the authors belief that consumers are aware of their consumption, as well as realize how wasteful they are with food in general For the students who do not fit into Eighner's wasteful category, he presents a grouping of frugal consumers who, "carefully wrap up even the smallest leftover[s] and shove it into the back of the refrigerator for six months or so before discarding it" (Eighner, 1993). Through the essay, "Dumpster Diving," Eighner impresses his superiority by illustrating disinterested people and their lack to complete certain tasks the author is skillful at. His disdain and impudence of students†¦ Eighner's autobiographical essay not only shows the degradation homeless people indure, but his personal snobbery of those around him Works Cited Eighner, Lars. Dumpster Diving. http://www1.broward.edu/~nplakcy/docs/dumpster_diving.htm
Thursday, October 24, 2019
Leadership Development Report Essay
Leadership has a paramount importance in the business world. It is not about a position, but how a person can influence others in creating and working towards that common organisation’s goal, and to create meaning in the works that we do. This report begins with the servant leadership framework that covers what I value in leadership. Also included in this report are the self-assessments that measure my leadership potential and competencies. This report also covers the issues associated to the industry I have chosen to work in and address my person-specific issues. II. LEADERSHIP DEVELOPMENT MODEL (175) Definition servant leadership Servant leadership is a type of leadership where the leader does order to be served; but focus on serving their followers in order to assist and guide them into more useful and satisfied people. This theory emphasize on the creation of moral purpose for leaders. It focuses on the impact that they leave on other people’s life to measure their greatness. Characteristics of servant leadership The servant leadership theory consists of ten key characteristics. These characteristics are; listening intently, empathy, healing, awareness, persuasion, conceptualization, foresight, stewardship, commitment to the growth of people, and building community. (Miller, Skringar, Dalglish & Stevens, 2012) Why servant leadership? My concept of leadership is someone who is able to influence their followers through inspiration, empower them to realize their undiscovered true potential, and bring meaning to their life. In addition, I believe that a leader needs to be able to listen to their follower’s need in order to put the will of the group above their own will on the group. I strongly uphold the need for empathy in my leadership concept, because I believe that a leader must be able to put themselves in their follower’s shoes and perceive things through the eyes of their followers in order to gain understanding from different perspectives and to empower the followers to bring out their passion and thus bring forward their fullest potential in making a meaningful work. As mentioned by a successful leader – Fred A. Mansk Jr, â€Å" The ultimate leader is one who is willing to develop people to the point that they eventually surpass him or her in knowledge and ability.†Therefore, I find Servant Leadership as the most suitable framework for my leadership plan. III. Diagnosis of Strength and Weaknesses To support the diagnostic process and to provide the information on my leadership strengths and weaknesses I am using the information from two personality tests; Carl Jung’s and Issabel Briggs Myer’s Typology Test and a standardized emotional intelligent (EI) test. Self Assessments Carl Jung’s and Issabel Briggs Myer’s Typology Test Carl Jung’s and Issabel Briggs Myer’s Typology Test is a psychometric assessment designed to measure the preferences in how people perceive the world and make decisions based on their psychological preference. The aim of this test is to help people to have a better understanding of themselves, by understanding their strengths, weaknesses, possible career preferences and their preferred approach when interacting with others. This test puts one into four letter categories, where each letter stands for a specific personality type. (Briggs, Myers, 1998) After undertaking this typology test, I was classified under INFJ (Introvert, iNtuitive, Feeling, Judging) typology. Firstly, introversion displays a characteristic that is reserved and highly private. This goes in line with my personal characteristic as I look within for meaning and understanding. Secondly, intuition indicates an emphasis on abstract ideas and focusing on the meaning of the bigger picture rather than solid details. Feeling focuses mainly on personal concerns and emotional perception rather than the logical and objective facts. Judging describes about the need to have control by planning, organizing and making decisions as soon as possible because of INFJs’ deep attention on the future. INFJ type is described as having the strengths of being determined and passionate, altruistic, decisive, insightful, creative, inspiring and convincing. Dr. Dranitsaris stated that INFJ leadership style is quiet and influencing. INFJ leaders often lead by inspiring and motivating people with their ideals, working hard to gain the cooperation of others rather than demanding it. In a business context, INFJ leaders also tend to genuinely care about the people and how happy they are with their job. (Dranitsaris, 2009). This describes the traits considered as strengths of the INFJ type: that of being warm, altruistic and passionate. The main motive for every work done is not focused centrally on gaining personal benefit but for the greater good of the broader society; to find value and purpose for every tasks. Also, INFJs are described to be deeply concerned about their relations with people and how it links to humanity. (Heiss, Butt, 1996) These are the strengths I believe I possess in myself and these characteristics go in line with the framework of servant leadership as explained previously. However, the very strong need to have a cause for every work done can serve as a weakness for INFJ. This is because it can become difficult to maintain the drive and energy to complete works when I am not able to derive any deeper purpose or relate the objective of the work to a worthy goal. The complexity INFJ is further seen with the tendency to be idealistic. When objectives are not in line with a meaningful goal, INFJ will incline to grow restless and demotivated overtime. This will affect the effort and end result. The result may deviate from the targeted aim which becomes a conflict with the need for perfection. These weaknesses are worsen with the reserved nature of INFJ which may trigger unexpressed internal conflicts. Emotional Intelligent Test (EI) Emotional Intelligent test, on the other hand is a psychological test which allow an individual to identify their social skills that facilitate their interpersonal behavior. It identifies one’s capacity for goal-oriented adaptive behavior. It focuses on the aspects of intelligence that govern self-knowledge and social adaptation. Below are the results that I have attained from this self-assessment: Strengths Potential Strength Weaknesses – doing well in the area of emotional understanding – chose good forms of resolution for others conflict situations on the test – empathetic – socially insightful – driven towards self-development – healthy approach in resolving conflict situations – doing reasonably well in the area of emotional identification, perception, and expression – act in accordance with your values – lacking in self-motivation – not very assertive – need to strengthen self-esteem – further development needed in personal resilience/hardiness. These strengths indicate that I possess some of the traits that are needed to display the characteristics of a good servant-leader. IV. Industry-Specific Issues Looking into the Hospitality industry, specifically Airlines, I will use Singapore Airlines as a basis of my evaluation. The extent of superior service is paramount for it to establish itself. In order to deliver the standard of service the company has set for itself, it requires highly passionate and motivated employees. One of the elements that contribute to the success of Singapore Airlines is its human resource that highly regards contribution of creative ideas in which rewards are later given. (Singh, 1984) To be passionate, to inspire and to encourage innovation are strengths found in INFJs that match with the traits of Servant Leaders who encourages and motivates the followers to making a meaningful and effective work efforts. V. Person-Specific Issues Gender, age and culture are important aspects to be considered in shaping one’s leadership development. Being someone coming from Asia, the idea of women becoming a leader will face cultural constraints. In the context of organization, becoming a female leader will be more challenging than the male counterpart because there is a strong notion whereby men are born to lead and women to follow or serve and men hold the leadership positions. (Carly, Eagly, 1999). This is still present in the traditional Asian culture. Even to the eyes of the followers, the figure that is seen to be capable of leading goes to male gender. The masculinity possessed becomes a symbol of strength and competency. (Schein, 2001) Instructions led by female leaders are more likely to be followed because of the idea of obedience to authority rather than being influenced through inspiration. The gender-bias corporate culture becomes a huge obstacle in making use of servant-leadership framework as a female. This gender bias is still evident in many office settings of Japanese corporations whereby higher ranking positions are given mostly to male; and in fact Japan seeing a near zero resemblance between women and managers. (Schein, Mueller, 1992) Besides that, age also becomes an issue in determining the level of experience of a professional. Younger age typically indicates limited exposure to the various real-life experiences and this may affect the extent of wisdom in making judgments. VI. Timeframe and Evaluation Plan The weaknesses based on the self-assessments are used to develop my leadership goals and the Michigan Leadership Competency Model serves as a tool to categorize the goals set and the timeframe for the plan. Time Frame Self-Developmental Goals Self-Management Conceptualization Servant leaders seek to nurture their abilities to dream great dreams; not just consumed by achieving operational goals. To develop characteristic and thinking process encompass broader-based conceptual thinking require discipline and practice. Leading Others Influencing/Persuasion Servant leaders seek to persuade and convince others through inspiration rather than coerce compliance. This requires a level of confidence, personal drive and energy to be emulated to the followers. As represented in one of my weaknesses from the self-assessment, I lack in self-motivation, self-esteem and assertiveness. These characteristics need to be developed in order to gain enough personal power to lead and guide others. Innovation Creativity Creativity is one of the key characteristics of servant leaders. Also, the hospitality industry takes great importance in areas of innovation to stay competitive and relevant. This is a characteristic that continually needs to be fostered and developed. Social Responsibility Ethically Social Servant Leadership highlights the importance of leading for the greater good for a deeper moral purpose. This emphasizes the need for moral awareness and ethical conducts when leading. This can be done by participating more in charitable or environmental causes which aim in improving social welfare of the broader society. Such participation allow exposure and knowledge-gaining. Evaluation by Multi-Step Action Plan 1 year Completing Bachelor of Business Degree 3 years Employment in Airline as Flight Attendant to gain exposure to new experiences, ethical conducts and ideas and insight knowledge on providing service in hospitality industry (Innovation & Social Responsibility) 2 years Further study on Master of Hospitality Management to broaden conceptual thinking process. This also help to gain self-esteem and improve on the ability to influence (Conceptualization & Influencing) Working in Management VII. Industry Leader Input Previously I focused my goals only on the trait developments. This was difficult measure because characteristics can only be proven once I’ve been put on the position to be a leader in a group. There was no tangible achievement to evaluate the success of my goal planning. Therefore, through his suggestion, I modified my goal timeframe by adding a multi-step action plan that cover the length of time to achieve each target. For example, the employment in an Airline industry will help me garner new experiences, perspective and practice discipline in work ethics. Feedback on my work performance from supervisors can serve as a form of evaluation. Also, the attainment of higher qualification will allow me to gain broader and deeper knowledge on the industry through research. The exposure and experience may help me to develop a stronger leadership characteristic and further evaluation can be done through taking re-test for EI. Wordcount: 1,509 words (Excluding References, Appedices, Headings & Tables) VIII. Appendices 1. Michigan Leadership Competency Model Leadership Assessment Report Scores range from 1 to 6, with 1 indicating that you rated yourself low on that competency and 6 indicating that you rated yourself high. Introverted iNtuition Introverted intuitives, INFJs enjoy a greater clarity of perception of inner, unconscious processes than all but their INTJ cousins. Just as SP types commune with the object and â€Å"live in the here and now†of the physical world, INFJs readily grasp the hidden psychological stimuli behind the more observable dynamics of behavior and affect. Their amazing ability to deduce the inner workings of the mind, will and emotions of others gives INFJs their reputation as prophets and seers. Unlike the confining, routinizing nature of introverted sensing, introverted intuition frees this type to act insightfully and spontaneously as unique solutions arise on an event by event basis. Extraverted Feeling Extraverted feeling, the auxiliary deciding function, expresses a range of emotion and opinions of, for and about people. INFJs, like many other FJ types, find themselves caught between the desire to express their wealth of feelings and moral conclusions about the actions and attitudes of others, and the awareness of the consequences of unbridled candor. Some vent the attending emotions in private, to trusted allies. Such confidants are chosen with care, for INFJs are well aware of the treachery that can reside in the hearts of mortals. This particular combination of introverted intuition and extraverted feeling provides INFJs with the raw material from which perceptive counselors are shaped. Introverted Thinking The INFJ’s thinking is introverted, turned toward the subject. Perhaps it is when the INFJ’s thinking function is operative that he is most aloof. A comrade might surmise that such detachment signals a disillusionment, that she has also been found lacking by the sardonic eye of this one who plumbs the depths of the human spirit. Experience suggests that such distancing is merely an indication that the seer is hard at work and focusing energy into this less efficient tertiary function. Extraverted Sensing INFJs are twice blessed with clarity of vision, both internal and external. Just as they possess inner vision which is drawn to the forms of the unconscious, they also have external sensing perception which readily takes hold of worldly objects. Sensing, however, is the weakest of the INFJ’s arsenal and the most vulnerable. INFJs, like their fellow intuitives, may be so absorbed in intuitive perceiving that they become oblivious to physical reality. The INFJ under stress may fall prey to various forms of immediate gratification. Awareness of extraverted sensing is probably the source of the â€Å"SP wannabe†side of INFJs. Many yearn to live spontaneously; it’s not uncommon for INFJ actors to take on an SP (often ESTP) role. References Briggs, K. C., & Myers, I. B. (1998). Myers-Briggs Type Indicator. Palo Alto, CA. Greenleaf, R. K. (1977). The Servant as Leader. Business Leadership: A Jossey-Bass Reader. San Francisco: Jossey-Bass. Miller, Skringar, Dalglish & Stevens, (2012) Leadership and Change Management. 1st ed. Prahran VIC Australia: Tilde University Press. Maxwell, J. C., & Dorvan, J. (1997). Becoming a Person of Influence: How to Positively Impact the Lives of Others. Nashville: Thomas Nelson Schein, V.E. (2001) A global look at psychological barriers to women’s progress in management. Journal of Social Issues. 57, pp. 675-688. Schein, V.E., & Mueller, R. (1992). Sex role stereotyping and requisite management characteristics: A cross cultural look. Journal of Organizational Behavior. 13, pp. 439-447. Carli L.L., Eagly A.H. (1999). Gender effects on influence and emergent leadership Powell G.N. (Ed.), Handbook of gender and work, Sage, Thousand Oaks, CA, pp. 203–222 Soo Min Toh, Geoffrey J. Leonardelli (2012) Cultural constraints on the emergence of women as leaders. Journal of World Business, Vol. 47, Issue 4, pp. 604-611 Karmjit Singh (1984). Successful strategiesâ€â€The story of Singapore Airlines (SIA) Long Range Planning, Vol.17, Issue 5, pp. 17-22 Dranitsaris, A., (ed.) 2009, Personality Type and Leadership Behaviour: Jung’s Typology for the Workplace, e-book, accessed 25 April 2013, Central Michigan University, 2004, Leadership Competency Model, accessed 20 April 2013, < http://www.chsbs.cmich.edu/leader_model/CompModel/EDUMAIN.htm > Heiss, M.M, Butt, J.,1999, INFJ, Typelogic, accessed 25 April 2013, HumanMetrics Jung’s Typology Test INFJ, 2012, accessed 25 April 2013,
Wednesday, October 23, 2019
Bimbo
Estrategias de Crecimiento de Bimbo: Fusiones y Adquisiciones a. Como se incorporo Bimbo el reparto de utilidades y la responsabilidad social en su compania? REPARTO DE UTILIDADES: Uno de los ingredientes mas importantes de la â€Å"receta secreta†de Bimbo es que no concibe a sus colaboradores como â€Å"recursos humanos†, sino como personas a las que brinda trato justo y afecto, seguridad, oportunidades de aprender y de crecer siendo utiles a la sociedad. Crecer e innovar es la consigna del personal de Bimbo. Ellos saben que el desarrollo de nuevos productos y la reinversion de las utilidades es lo mejor para la empresa, y mantienen el compromiso de generar una publicidad etica, anclada en la verdad y el respeto al cliente. Una â€Å"gran preocupacion desde el principio, fue la relacion con el personal. Queriamos que trabajara contento, que se identificara con la empresa, que se le respetara. Por nuestra formacion cristiana, teniamos una vision no instrumental de la gente, de relaciones cordiales y armoniosas con el personal†. Con los anos se consolido el ideal de una empresa â€Å"altamente productiva y plenamente humana†. Los repartos de utilidades entre los colaboradores rebasaron los minimos fijados por ley, y muchos de ellos pudieron adquirir acciones de la empresa a precios inferiores a los del mercado. . Participacion de los trabajadores en las utilidades – La PTU se registra en los resultados del ano en que se causa y se presenta en el rubro de otros gastos en los estados de resultados. 2008 2007 2006 Ventas Netas82,317 72,294 66,836 Participacion de los trabajadores en las utilidades 467 467 456 RESPONSABILIDAD SOCIAL: Comprometido con su responsabilidad social, Grupo Bimbo participa en importantes proyectos comunitarios, como la reforestacion de areas naturales protegidas de la Republica Mexicana, asi como en diferentes proyectos para el bienestar de la sociedad. El Programa de Responsabilidad Social, se centra en cuatro programas: 1. Comprometidos con tu Salud.? 2. Comprometidos con el Medio Ambiente.? 3. Comprometidos con Nuestros Colaboradores.? 4. Comprometidos con Nuestra Sociedad. 1. Comprometidos con tu Salud: Integra iniciativas enfocadas al bienestar de la poblacion: a. Innovacion y reformulacion de productos: Reduccion de acidos trans-fat, azucar y sal. Introduccion de productos de 100 calorias, introduccion de productos fortificados con avena, linaza, etc. b. Informacion Nutricional a los consumidores: Informacion mas comprensible por medio de etiquetas mas claras y legibles. c. Publicidad y Mercadotecnia responsables: Se firmo el Codigo Mexicano de Publicidad de Alimentos y Bebidas para ninos, con el cual se comprometen a promover una publicidad socialmente responsable hacia los ninos. d. Promocion de actividad fisica y estilos de vida saludables: A traves de publicidad, envolturas, sitios en Internet, publicaciones, reportes del consumidor y promocion de actividades, contribuyen a el mejoramiento de la calidad de vida de los consumidores. Por ejemplo: el slogan â€Å"Llenate de energia con 30 minutos de ejercicio diario†en todos los empaques y publicidad; y el Torneo Futbolito Bimbo. e. Asociaciones: Con otras empresas para establecer programas como Alianza para el corazon, Alianza para un estilo de vida saludable. Y con institutos de nutricion para poder ofrecer productos nuevos y mejores. Tambien se apoya a la Cruz Roja en Mexico, la Casa de la Amistad para Ninos con Cancer en Mexico y otros proyectos en Guatemala, Costa Rica y Uruguay. En EEUU se apoyan programas que contribuyen a la prevencion de enfermedades congenitas, nacimientos prematuros y muerte de ninos, entre otros. 2. Comprometidos con el Medio Ambiente: Se trabaja mas de 20 proyectos en 5 lineas de accion: a. Ahorro de energia b. Reduccion de emisiones c. Ahorro de agua d. Administracion de desperdicios solidos. e. Responsabilidad social hacia el medio ambiente: Se invita a los colaboradores y proveedores a compartir acciones para beneficiar el medio ambiente. Se llevan a cabo ferias de Sustentabilidad para dar a conocer a los colaboradores informacion de los productos ecologicos para el consumo en el hogar. Se fundo â€Å"Reforestemos Mexico†que en conjunto con los grupos etnicos de Mexico se desarrollan habilidades para promover las practicas sustentables y asegurar la preservacion de recursos naturales. Bimbo es parte de la Comision de Estudios del Sector Privado para el Desarrollo Sustentable que representa al Consejo de Negocios Mundial de Desarrollo Sustentable, en Mexico. 3. Comprometidos con Nuestros Colaboradores: a. Salud y Seguridad: Programas de orientacion que incluyen platicas para reducir los accidentes en la compania, asi la realizacion de campanas medicas que promueven la vacunacion, y pruebas de vision, audicion y dentales a los colaboradores. Constantemente se refuerza la importancia de adoptar estilos de vida saludables por medio de conferencias y cursos. Se ha implementado un programa que promueve el ejercicio fisico diario en el trabajo. b. Desarrollo de Colaboradores: Se ofrecen cursos de educacion primaria, cursos de ingles, instruccion para lograr un grado universitario en Mexico y Latinoamerica, tambien se cuenta con una Universidad virtual que contribuye al desarrollo de talento y liderazgo. c. Ayuda Social: Se promueven los ahorros voluntarios entre los colaboradores. Se promueven oportunidades de trabajo, se contrata a un gran numero de colaboradores con discapacidades, se ofrecen conferencias sobre ambiente de trabajo, etc. 4. Comprometidos con Nuestra Sociedad: Se ayuda en forma economica para promover el progreso social y la educacion. En el area de educacion se construyo en 2008 el Centro para el Tratamiento de Individuos con Afasia, se apoyaron programas educativos como â€Å"Ayudando a Ninos como Yo â€Å" de UNICEF, â€Å"El Calendario de Valores†de Fundacion Televisa, programas de nutricion a ninos y becas de la Fundacion Tarahumara, entre otros. Se colaboro en la publicacion del libro â€Å"Como proteger a tus hijos de las drogas†. Mas de 1,000 estudiantes y educadores recibieron apoyo a traves de instituciones como Fundacion de Empresarios por a Educacion Basica. Y se ayudo a mas de 5,000 estudiantes universitarios de la Escuela Bancaria y Comercial, ITAM, UDEM e UIA. Tambien en el extranjero se apoya en organizaciones en pro de la educacion. Mas de un millon de agricultores se han beneficiado de los proyectos que apoya Grupo Bimbo. Tambien, en asociacion con FinComun, se le ha br indado ayuda financiera a mas de 15 mil micro empresas y cerca de 140 mil personas con espiritu emprendedor para que desarrollen sus propios negocios. b. ?Cuando se convirtio Bimbo en una empresa cotizada en la Bolsa de Valores? La primera empresa del grupo, â€Å"Panificacion Bimbo†, fue fundada el 2 de diciembre de 1945 en la ciudad de Mexico. Posteriormente, entre 1952 y 1978, se abrieron 12 plantas mas, lo que le permitio extender la distribucion de sus productos a todo Mexico. Durante este mismo periodo se constituyo la fabrica â€Å"Pasteles y Bizcochos†, que posteriormente se convertiria en â€Å"Productos Marinela†. Y se establecieron las primeras plantas de dulces y chocolates de â€Å"Ricolino†y de botanas saladas â€Å"Barcel†. Durante este periodo empezo tambien la integracion vertical del Grupo con la inauguracion de la primera planta de mermeladas. Desde febrero de 1980, 34 anos despues de su fundacion, Grupo Bimbo se transformo en una empresa publica y 15% de sus acciones comenzaron a cotizarse en la Bolsa Mexicana de Valores. La empresa no se cotiza en el exterior, debido a que no ha tenido necesidad de financiarse en mercados internacionales, sus necesidades la ha cubierto oportunamente el mercado nacional. c. ?Cuando fue la primera adquisicion de Bimbo? ?Cual fue la meta, y como actuo la compania para asegurar que su flexibilidad no fuera comprometida por esta adquisicion? Con la finalidad de lograr una posicion de liderazgo a nivel internacional y consolidarse como lider en el continente americano, el Grupo ha realizado inversiones en el extranjero. Dichas inversiones se efectuan a traves de asociaciones estrategicas y/o adquisiciones de empresas del sector que le permitan tener una red de canales de distribucion y venta todavia mas importante y asi poder consolidarse operativamente. El interes de BIMBO por participar en los mercados internacionales se debe al gran potencial de crecimiento en lo referente a la relacion de consumo entre pan tradicional y pan empacado. La primera adquisicion del Grupo Bimbo en Mexico fue Continental de Alimentos, S. A. en Mexico en 1986. En 1990 comenzo con operaciones a nivel internacional con la adquisicion de una planta productora de pan y pastelitos en Guatemala. Las estrategias de adquisicion le han permitido al Grupo capitalizar las experiencias en diferentes mercados y diversificar su concentracion geografica, disminuyendo asi el riesgo que pudieran presentar los mercados locales en los que participa. La estrategia de crecimiento de Grupo Bimbo ha sido desde un principio consolidar su plataforma. Cronologia de expansion y adquisiciones del Grupo Bimbo: 1984BIMBO incursiono en el mercado de exportacion con la distribucion de productos Marinela hacia EE. UU. 1986BIMBO adquirio en Mexico: Continental de Alimentos, S. A. de C. V. , empresa que producia y comercializaba la marca Wonder, hasta entonces competidora directa de BIMBO en panificacion y pastelitos. 1989Se adquiere Holsum en Venezuela. 1990Comenzo con operaciones a nivel internacional, con la adquisicion de una planta productora de pan y pastelitos en Guatemala, esto marco el inicio de la cobertura que el Grupo tiene en Latinoamerica. 992Adquision de Alesa, S. A. y Cena (hoy Ideal, S. A. ) en Chile. Adquision en Mexico de la fabrica Galletas Lara, lo cual permitio la entrada formal al mercado de las galletas tradicionales, tipo â€Å"marias†y saladas, 1993Se extendio a Venezuela con la adquisicion de Industrias Marinela, C. A. y Panificadora Holsum de Venezuela, C. A. Se instalaron plantas productivas en Argentin a, Colombia, Costa Rica, El Salvador y Peru, asi como empresas de distribucion en Honduras y Nicaragua. Se explande en Estados Unidos, con el establecimiento y adquisicion de plantas productivas en los estados fronterizos con Mexico. Se adquiere Orbit Finer Foods, Inc. 1994Se adquiere en EEUU: La Fronteriza, Inc. 1995Se adquiere en EEUU: C&C Bakery, Inc. y la Tapatia Tortilleria, Inc. 1996Se adquiere en EEUU: Pacific Pride Bakeries, con dos plantas (Suandy Foods Inc. y Proalsa Trading, Co. 1998Se adquiere en EEUU: La empresa de panificacion Mrs. Baird’s, lider en el estado de Texas, EEUU , y en Mexico se inicio con operaciones en la planta de Bimbo en la Paz, Baja California. La expansion de BIMBO llego al continente europeo con el establecimiento en Alemania de la empresa distribuidora de confiteria Park Lane Confectionery. Tambien en ese ano, con objeto de enfocarse en sus negocios principales, BIMBO llevo a cabo desinversiones en la elaboracion y distribucion de helados en Mexico y de botanas saladas en Chile. 1999BIMBO realizo una alianza estrategica con la empresa Dayhoff, en EE. UU. , dedicada a la distribucion de dulces, a traves de una participacion accionaria de 50%. BIMBO se asocio con Grupo Mac’Ma al adquirir una participacion de 51% en las empresas dedicadas a la elaboracion de pastas. En el estado de California, EE. UU. , adquirio la empresa panificadora Four-S. Se construyo una nueva planta panadera en Tijuana, BC. Refuerza presencia en Colombia, con la adquisicion de activos en la ciudad de Calli. Se convierte en el proveedor unico de toda la bolleria de la cadena de restaurantes McDonald? s en Venezuela, Colombia y Peru. Se concretan negociaciones con la empress Panacea, SA en Costa Rica, lo cual permitio a BIMBO la adqusision de algunos de los activos de esta empresa y el derecho al uso de Tulipan, su marca lider en ese pais. Se consolida en EEUU Mrs. Baaird’s Bakeries Busineess Trust en el mercado de Texas y Bimbo Bakeries USA, Inc. en el mercado de California. 000Se inauguran, a traves de Ricolino, dos plantas en la Union Europea, una en Viena, Suiza y en Ostrava, Republica Checa. Se adquiere la panificadora Pan Pyc, la segunda empresa mas importante en Peru. Se adquiere la empresa La Mejor en Guatemala, con presencia en Guatemala, El Salvador y Honduras. 2001Se adquirio Plus Vita, una de la empresas panificadoras mas grandes en Brasil. 2002La participacion de BIMBO en la alianza con la empresa Dayhoff en EEUU aumento a 70%. Se fusionaron todas las empresas operadoras del Grupo en Mexico, en dos grandes empresas Bimbo, SA de CV y Barcel , SA de CV. Para optimizar operaciones y eficientar su capacidad instalada y su fuerza de distribucion. Se adquirio, a traves de la subsidiaria en EEUU, las operaciones de la panificacion en la region oeste de EEUU, pertenecientes a la empresa George Weston Limited. Con ello fortalecio la posicion del Grupo en mercados clave: California y Texas. 2003Se concreto una alianza estrategica con Wrigley Sales Company en EEUU. Participacion como socio minoritario en un consorcio donde adquiere ciertos derechos de propiedad y deuda de la Compania de Alimentos Fargo, SA en Argentina. 004 Adquiere el total de acciones de Dayhoff en EEUU. Adquisicion de las empresas Jocyco de Mexico SA de CV, Alimentos Duval, SA de CV y Lollmen, SA de CV, propiedad de accionistas mexicanos y de la empresa espanola Corporacion Agrolimen, SA. Se adquieren en Mexico dos plantas de produccion lideres de la industria de la confiteria en Mexico. 2005Se adquiere en Mexico: Controladora y Administradora de Pastelerias, SA de CV, op eradora de las pastelerias El Globo. 2006Se adquiere en Uruguay las empresas panificadoras Walter M. Doldan y Cia, SA y Los Sorchantes, SA, posicionados como lideres en el mercado. Se inician operaciones en Asia, al adquirir la empresa Beijing Ranrico Food Processing Center, ubicada en China, lo que ha permitido una importante presencia y reconocimiento en Beijing y Tianjin. Se adquieren activos y marcas de las pastelerias El Molino, unas de las mas antiguas y de mayor tradicion en Mexico. 2007Se realizo la compraventa de la empresa de galletas, grissines y pan rallado Maestro Cubano Florentino Sande, SA en Uruguay. Se adquirio Temis en Paraguay. 008Se adquieren las companias Laura y de Firenze en Brasil. Se adquiere Plucky en Uruguay. Adquiere el 75% e acciones de la empresa panificadora Nutrela Alimentos, SA en Brasil. Se adquiere en Honduras Galletas Lido Pozuelo. Se adquiere en Mexico: Galletas Gabi 2009Se adquiere la panificadora Weston Foods, Inc en EEUU. Mayor operacion en la historia del Grupo Bimbo. Bibliografia: Santander (2009) Latin American Equity Research: Recuperado e l dia 27 de marzo de 2010 de: http://www. santander. com. mx/PDF/canalfin/documentos/bimbo231009e. df Grupo Bimbo (2010) GRUPO BIMBO REPORTA RESULTADOS DEL SEGUNDO TRIMESTRE DE 2009. Recuperado el dia 27 de marzo de 2010 de: http://www. grupobimbo. com. mx/relacioninv/uploads/reports/PR%202T09. pdf Grupo Bimbo (2010) Reporte Anual 2008. Recuperado el dia 27 de marzo de 2010 de: http://www. grupobimbo. com/relacioninv/uploads/reports/IA%202008%20esp. pdf Grupo Bimbo (2008) DECLARACION DE INFORMACION SOBRE REESTRUCTURACION SOCIETARIA. Recuperado el 28 de marzo de 2010 de: http://www. grupobimbo. com/relacioninv/uploads/press/reescorp. pdf Enfasis Alimentacion (2010) Grupo Bimbo podria convertirse en la empresa mas importante de panificacion a nivel mundial. Recuperado el dia 28 de marzo de 2010 de: http://www. alimentacion. enfasis. com/notas/11490-grupo-bimbo-podria-convertirse-la-empresa-mas-importante-panificacion-nivel-mundial Grupo Bimbo (2010) Historia Grupo Bimbo. Recuperado el 28 de marzo de 2010 de: http://www. grupobimbo. com/admin/content/uploaded/Historia%20Grupo%20Bimbo. pdf Grupo Bimbo 08 Social Responsability Report http://www. grupobimbo. com/admin/content/uploaded/BIMBO%20RS%20ING%20xpag. df Grupo Bimbo Informe Anual 08 http://www. grupobimbo. com/relacioninv/uploads/reports/IA%202008%20esp. pdf Editorial Columnas. Cultura Bimbo. http://www. eluniversal. com. mx/columnas/55515. html Grupo Bimbo. Pagina internet. http://www. grupobimbo. com/display. php? section=1&subsection=13 Bolsa Mexicana de Valores http://www. bmv. com. mx/ Entrepreneur. Grupo Bimbo Selling Bread and Nostalgia http://www. entrepre neur. com/tradejournals/article/131896496. html Grupo Bimbo. Reporte Anual 2008 http://www. bmv. com. mx/infoanua/infoanua_3099_20090625_1643. pdf
Tuesday, October 22, 2019
How the Beatles influenced America
How the Beatles influenced America Perez 7Gema PerezCara RosenthalWorld History, Period 9May 20, 2014The Beatles' Invasion in AmericaThe 1960's was an era of changing and denying in U.S History. "There has always been a difference in tastes between parents and their children; very often parents do not understand their children's feelings and attitudes. In result, the wealth of material brings the emptiness of spiritual life. The teens saw everything meaningless; they do not want that kind of life" (Fanyi). They sought for a better life than the one their parents passed on to them. However, in the sixties the gulf between these two groups was even wider than it had ever been before. In the world there was a feeling of discontent with the state of society among the young. In their opinion they were consumption-oriented and corrupt. At this time the boundary between mainstream culture and subculture was falling apart.English: Paul McCartney, George Harrison and John ...Music is an exit that gave them a chance to express their thoughts about people, war, government, society and especially Rock music. When The Beatles' arrived in America, they restyled the United States by their use of unique sound, charming appearances, and influence on the youth culture. The group was consisted of John Lennon,[vocals, rhythm guitar] Paul McCartney, [vocals, rhythm guitar] George Harrison, [lead guitar, vocals] and Ringo Starr [drums, vocals, percussion].These fabulous foursome [their nickname] were the most successful Rock band in the 1960's because they became a culture icon to this generation in America and Europe. Their songs fulfilled their spiritual life and had a great impact on the American culture. By understanding how The Beatles' influenced America, the reader comprehends how the development of Rock and Roll music influenced rebellion in youth today.In the 1960s The Beatles' journey started of changing the world...
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