Neorealism Kenneth Waltz Theory of International Politics

Introduction A theory is a set of ideas which provide an explanation of something. Theories act as frameworks for guiding scholars and researchers in their work so as to avoid duplication of ideas or repeating the mistakes which were made by previous researchers or scholars.Advertising We will write a custom research paper sample on Neorealism: Kenneth Waltz ‘Theory of International Politics’ specifically for you for only $16.05 $11/page Learn More In international relations, theories are used to explain the relationships between nations of the world. The theories look at the philosophies which shape the relationships between nations and the key interests of the nations which participate in international relations (Acharya Buzan, 2009). Various theories have different explanations about why, how and to what extend do nations interact. However, the overriding principle in all international relations theories is that nations relate for specif ic interests and in their relations, they usually try to create a win win situation which is characterised by a symbiotic kind of relationship. One of the theories of international relations is neorealism which was derived from the classical realism theory (Brown Ainley, 2009). Realism This is a state-centric international relations approach in that it looks at states as the key actors in international politics. The theory is based on historical writers such as the works of Rousseau, Machiavelli and Thucydides (Edkins Vaughan-Williams, 2009). The main argument of realism is that international relations is characterised by anarchy, in which states interact for their selfish interests. Realism therefore negates the mutual understanding of states in their relations but rather puts more emphasis on the struggle of nations to amass as much resources as possible in order to advance their own interests. With realism, economic success is the leading interest in international relations (Bo oth Smith, 1995). Neorealism As mentioned above, neorealism is a reformulation of classical realism. Its key proponent is Kenneth Waltz, who outlined it in his book titled ‘Theory of International Politics’ published in 1979 (Baldwin, 1993). For the last decade, the neorealist approach has gained popularity in the field of international relations.Advertising Looking for research paper on international relations? Let's see if we can help you! Get your first paper with 15% OFF Learn More The theory is critical of classical realism because of the persistence use of the concept of human nature in the explanation of relationships by nations. According to neorealists, international relations are shaped more by the structural constrains rather than human nature which includes motivation and strategy. It is also shaped by the anarchic principle, which has been widely decentralized meaning that all states have similar needs but what separate them are their capabil ities to achieve those needs. States therefore have to be very careful when choosing which state or states to partner with in efforts to increase capabilities of meeting their needs. What this means is that nations have to enter into a relationship only with nations which have the potential of improving their capability of meeting thier needs. If this is not done carefully, the result is that some nations end up losing and others benefiting from the relationship thus creating a situation reffered to as security dilemma (Baldwin, 1993). In order for nations to improve their capabilities of meeting their needs in the international platform, they engage in what is reffered to as balance of power which takes place in two forms namely internal and external balancing. Internal balancing of power entails the acceleration of economic growth and investing more in military. External balancing entails entering into alliances with other nations so as to keep the power of other powerful nations or alliances of nations at check (Baldwin, 1993). According to neorealists, there exist three systems of capability distribution in the international arena. They include a unipolar system, a bipolar system and a multipolar system. In international relations, polarity is defined as the distribution of power within the international system. A unipolar structure constitutes of one state, whose capabilities (economic, military, cultural and geopolitical) are too high to be counterbalanced by other states. Bipolarity has to do with a situation in which two states are predominantly powerful over the others while muiltipolarity has to do with a situation in which more than three states are powerful and can act as centres of power in the world at the same time (Krauthammer, 1991).Advertising We will write a custom research paper sample on Neorealism: Kenneth Waltz ‘Theory of International Politics’ specifically for you for only $16.05 $11/page Learn More Realists are of the view that the current international system is a bipolar one, pitting the United States (US) on one hand and the other nations on the other. According to them, bipolarity is the least prone structure to war because the second tier states (those which are close to the super power in terms of capabilities) usually foster their good relationships with the super power, each of them having the interest of forming an alliance with the super power to outwit the others in the fight for supremacy. The closest rivals in the supremacy for bipolarity include Britain, German, Japan and China. All these are known to partner with the United States in many ways, both as strategies for increasing their internal stability and increasing their supremacy (Kugler Lemke, 1996). However, critics of neorealsim are of the view that since unipolairity is characterized by one state whose capabilities are too high to be counterbalanced, it means that the threat of rivalry between pow er hegemons is not a possibility. According to the hegemonic theory, the presence of a powerful state enhances international peace because there is no competition for supremacy. The given state therefore enhances international peace as long as it is able to retain its power differences and suppress any efforts by other states to close the gaps in power (Huntington, 1999). References Acharya, A., Buzan, B. (eds). (2009). Non-Western International Relations Theory.London: Routledge. Baldwin, D.A. (1993). Neorealism and neoliberalism: the contemporary debate. New York: Columbia Univ. Press.Advertising Looking for research paper on international relations? Let's see if we can help you! Get your first paper with 15% OFF Learn More Booth, K., and Smith, S. (eds). (1995). International Relations Theory Today, Oxford:Polity. Brown, C., Ainley,K. (eds). (2009). Understanding International Relations (4th, Ed.). Basingstoke: Palgrave Macmillan. Edkins , J., Vaughan-Williams, N. (eds). (2009). Critical Theorists in InternationalRelations. London: Routledge. Huntington, S.P. (1999). â€Å"The Lonely Superpower,† Foreign Affairs, Vol. 78, No. 2, p. 36. Krauthammer, C. (1991). â€Å"The Unipolar Moment,† Foreign Affairs, Vol. 70, No. 1 winter, pp. 23–33. Kugler, J., Lemke, D., eds., (1996). Parity and War: Evaluation and  Extension of the War Ledger. Ann Arbor: University of Michigan Press. This research paper on Neorealism: Kenneth Waltz ‘Theory of International Politics’ was written and submitted by user Asia Lott to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Definition and Examples of Word Boundaries

Definition and Examples of Word Boundaries In writing, word boundaries are conventionally represented by spaces between words. In speech, word boundaries are determined in various ways, as discussed below. Related Grammatical and Rhetorical Terms Assimilation and DissimilationConceptual MeaningConnected SpeechIntonationMetanalysisMondegreenMorpheme and PhonemeOronymsPausePhonetics and PhonologyPhonological WordProsodySegment and SuprasegmentalSlip of the EarSound Change Examples of Word Boundaries When I was very young, my mother scolded me for flatulating by saying, Johnny, who made an odor? I misheard her euphemism as who made a motor? For days I ran around the house amusing myself with those delicious words. (John B. Lee, Building Bicycles in the Dark: A Practical Guide on How to Write. Black Moss Press, 2001I could have sworn I heard on the news that the Chinese were producing new trombones. No, it was neutron bombs. (Doug Stone, quoted by Rosemarie Jarski in Dim Wit: The Funniest, Stupidest Things Ever Said. Ebury, 2008As far as input processing is concerned, we may also recognize slips of the ear, as when we start to hear a particular sequence and then realize that we have misperceived it in some way; e.g. perceiving the ambulance at the start of the yam balanced delicately on the top . . ..  (Michael Garman, Psycholinguistics. Cambridge University Press, 2000 Word Recognition The usual criterion for word recognition is that suggested by the linguist Leonard Bloomfield, who defined a word as a minimal free form. . . .The concept of a word as a minimal free form suggests two important things about words. First, their ability to stand on their own as isolates. This is reflected in the space which surrounds a word in its orthographical form. And secondly, their internal integrity, or cohesion, as units. If we move a word around in a sentence, whether spoken or written, we have to move the whole word or none of itwe cannot move part of a word.(Geoffrey Finch, Linguistic Terms, and Concepts. Palgrave Macmillan, 2000)[T]he great majority of English nouns begins with a stressed syllable. Listeners use this expectation about the structure of English and partition the continuous speech stream employing stressed syllables.(Z.S. Bond, Slips of the Ear. The Handbook of Speech Perception, ed. by David Pisoni and Robert Remez. Wiley-Blackwell, 2005) Tests of Word Identification Potential pause: Say a sentence out loud, and ask someone to repeat it very slowly, with pauses. The pauses will tend to fall between words, and not within words. For example, the / three / little / pigs / went / to / market. . . .Indivisibility:  Say a sentence out loud, and ask someone to add extra words to it. The extra item will be added between the words and not within them. For example, the pig went to market might become the big pig once went straight to the market. . . .Phonetic boundaries:  It is sometimes possible to tell from the sound of a word where it begins or ends. In Welsh, for example, long words generally have their stress on the penultimate syllable . . .. But there are many exceptions to such rules.Semantic units:  In the sentence Dog bites vicar, there are plainly three units of meaning, and each unit corresponds to a word. But language is often not as neat as this. In I switched on the light, the has little clear meaning, and the single action of switchin g on involves two words.​(Adapted from The Cambridge Encyclopedia of Language, 3rd ed., by David Crystal. Cambridge University Press, 2010) Explicit Segmentation [E]xperiments in English have suggested that listeners segment speech at strong syllable onsets. For example, finding a real word in a spoken nonsense sequence is hard if the word is spread over two strong syllables (e.g., mint in [mÇ€ntef]) but easier if the word is spread over a strong and a following weak syllable (e.g., mint in [mÇ€ntÉ™f]; Cutler Norris, 1988).The proposed explanation for this is that listeners divide the former sequence at the onset of the second strong syllable, so that detecting the embedded word requires recombination of speech material across a segmentation point, while the latter sequence offers no such obstacles to embedded word detection as the non-initial syllable is weak and so the sequence is simply not divided.Similarly, when English speakers make slips of the ear that involve mistakes in word boundary placement, they tend most often to insert boundaries before strong syllables (e.g., hearing by loose analogy as by Luce and Allergy) or delet e boundaries before weak syllables (e.g., hearing how big is it? as how bigoted?; Cutler Butterfield, 1992).These findings prompted the proposal of the Metrical Segmentation Strategy for English (Cutler Norris, 1988; Cutler, 1990), whereby listeners are assumed to segment speech at strong syllable onsets because they operate on the assumption, justified by distributional patterns in the input, that strong syllables are highly likely to signal the onset of lexical words. . . .Explicit segmentation has the strong theoretical advantage that it offers a solution to the word boundary problem both for the adult and for the infant listener. . . .Together these strands of evidence motivate the claim that the explicit segmentation procedures used by adult listeners may in fact have their origin in the infants exploitation ofrhythmic structure to solve the initial word boundary problem.​(Anne Cutler, Prosody and the Word Boundary Problem. Signal to Syntax: Bootstrapping from Speech t o Grammar in Early Acquisition, ed. by James L. Morgan and Katherine Demuth. Lawrence Erlbaum, 1996)

Catcher In The Rye Psychiatric Analysis English Literature Essay

Catcher In The Rye Psychiatric Analysis English Literature Essay At the time of telling his story, Holden is in a patient in a mental hospital. He is telling his story to an unnamed listener. Pretend that you are a highly respected psychiatrist who is listening to Holden’s account. It is your responsibility to write a report on the mental stability of patient to determine whether or not he is fit for release. Below this is the standard psychiatric report sheet that you must fill out to examine Holden’s state of mind. Your evidence must be well documented and complete. Refer to specific incidences. You will need to research emotional depression, its causes, effects and treatments. (You might try searching ‘manic behavior†.) Account for the possible causes of Holden’s breakdown and suggest possible treatments. Remember, a person’s freedom depends on your professional judgment. Holden’s father is a lawyer who. He seems to be rather strict and very interested in appearances he shows this by making sure t hat Holden stays in exclusive prep schools, whether he has to to be or not. He never got to know Holden because of this. His mother is mentioned as being â€Å"nervous as hell†, having frequent headaches and sitting up smoking most nights. All of it is blamed on her never getting over Allie’s death. Holden never got to know his parents because he was for the most part sent to boarding schools. He never had a chance at developing a healthy relationship with his parents. Holden’s family is obviously very important to him. At the beginning of his account he begins with talking about his parents and his brother. Holden negatively criticizes them to conceal the fact that he truly loves them. Holden is constantly being sent from one boarding school to a new. The emotional distance between him and his parents strengthens his general alienation from everyone. STANDARD PSYCHIATRIC RELEASE FORM (page 2) 2. Sibling Relationships / Rivalries He has a good relationship with his sister, Phoebe. He loves his sister and admires her. He wants to protect Phoebe from the cruel world. Phoebe understands what Holden is talking about and what he is going through. Holden feels the constant need to protect her from the â€Å"cruel world’ around her. Phoebe is concerned about Holden’s future and what will happen to him when their dad finds out Holden got kicked out of boarding school (pg 164 Salinger). When Holden is going to run away to the west, she tells him that if he goes, she will too (pg 207 Salinger). After this Holden seems to be able to grasp the reality that she will be destroying her life if she runs with him, and decides that he will go home with her. This is the only time that Holden put another person ahead of himself and acknowledge that he has the capacity to change the lives of others. This judgment of his shows that there may be hope that Holden has the capability to heal into a fully functioning adult subsequently to his re-entry into the world after exiting the mental hospital.

Case Report on a Supreme Court decision that has been important in Essay

Case Report on a Supreme Court decision that has been important in shaping the interpritation of the Constitution - Essay Example This and other court appointments by the outgoing administration caused considerable consternation among the victorious Democratic-Republicans. During his long tenure, the decisions of the Marshall Court laid down the groundwork for an independent judiciary, the Court’s role as final arbiter of the Constitution, and practical guidelines for the functioning of a nation with distributed domestic sovereignty. Marshall’s greatest contribution to American constitutional practice was the establishment of the concept of judicial review: the Supreme Court should be the final arbiter in determining whether Acts of Congress and actions of the Executive (i.e., the President) are consonant with the language of the Constitution. This was accomplished through the resolution of an otherwise obscure suit at law brought by a Maryland businessman, William Marbury, requesting the Supreme Court issue a writ of mandamus to Secretary of State James Madison, requiring the latter to deliver to Marbury an already signed and sealed appointment as Justice of the Peace for the District of Columbia. Marbury was one of a group of 42 men appointed justices of the peace by the lame duck Adams Administration. In the ensuing months, 25 had their appointments confirmed by the new administration. Marbury belonged to the denied group. Marbury v. Madison, unlike virtually all other cases before the Supreme Court, w as one in which the judges sat as a trial court of original instance. Marbury’s request for a writ of mandamus was brought under the terms of article 13 of the Judiciary Act of 1789. Marbury and the host of other ‘midnight’ appointments were a partisan political issue and Marshall was desperate to keep the court from become politicized, realizing that under such conditions, an independent judiciary could not prevail. Marbury had failed in his attempt to secure documentation from the Senate (i.e., from that

Philosophy of Small Groups Research Paper Example | Topics and Well Written Essays - 1250 words - 1

Philosophy of Small Groups - Research Paper Example In the recent times, increased diversity in the workplace has perpetuated the desire for workers to work cooperatively and collective in groups in pursuit for accomplishment of organizational goals and objectives. Even so, not all groups that are formed in an organization become effective. Apparently, group effectiveness has become integral in most organizations today. This has bolstered the significance of group effectiveness skills which include proper interpersonal communication skills, ability to diffuse conflicts, teamwork, appreciation for diversity and negotiation skills, among others (Campion, Medsker & Higgs, 2001). There is increased prevalence of organizations to adopt work groups or teams aimed at curbing a full gamut of challenges that have marred today’s business environments. As much as most groups work, a good number of them are not usually effective. The may be attributed to a plethora of reasons. Indeed, some groups lack or posses a low unity of purpose. So to speak, a group that is not committed to a common objective or a group whose objectives are not meaningful to each and every member of the group may not be effective at all. According to Argris (2010), such a group may be characterized by low performance as the members have no collective obligations towards achievement of common objectives. More often than not, Poor relationships among a group may also render the group ineffective. In this regards, a group whose members maintain poor relationships with each other within and outside the group, may not effectively achieve their goals. Such a group may be prone to conflicts and this may lower the commitment of members to the group and have adverse effects on ultimate performance. Lack of proper delegation of responsibility may also cost a group’s effectiveness. As such, if the members to a certain group are not assigned to specific responsibilities with the aim of

The Fifth Discipline Essay Example for Free

The Fifth Discipline Essay Introduction The organizations that will truly excel in the future will be those that discover how to tap people’s commitment and develop the capacity to learn at all levels in an organization. Deep down, people are learners. No one has to teach an infant to learn. In fact, no one has to teach infants anything. They are intrinsically inquisitive, masterful learners. Learning organizations are possible because at heart we all love to learn. Through learning we re-create ourselves and are able to do something we were never able to do earlier. Through learning we reperceive the world and our relationship to it. Through learning we extend our capacity to create, to be part of the generative process of life. There is within each of us a deep hunger for this type of learning. This seminal book by Peter M Senge explains how learning organizations can be built. The building blocks Systems Thinking Business and other human endeavours are systems of interrelated actions, whose full impact may be seen only after years. Since we are part of these systems, it’s hard to see the whole pattern of change. Instead, we tend to focus on snapshots of isolated parts of the systems, and wonder why our deepest problems never seem to get solved. Systems thinking is a conceptual framework, to make the full patterns clearer and to help us see how to change them effectively. Personal Mastery Mastery means a special level of proficiency. People with a high level of personal mastery are able to consistently realize the results that matter most deeply to them in effect. They approach their life as an artist would approach a work of art, by becoming committed to their own lifelong learning. The discipline of personal mastery, starts with clarifying the things that really matter to us, of living our lives in line with our highest aspirations. Mental Models Mental models are deeply ingrained assumptions, generalizations, or even pictures of images that influence how we take action. Very often, we are not consciously aware of our mental models or the effects that they have on our behavior. Many insights into new markets or outmoded organizational practices fail to get put into practice because they conflict with powerful, tacit mental models. Institutional learning is the process whereby people change their shared mental models of the company, their markets, and their competitors. Building Shared Vision If any one idea about leadership has inspired organizations for thousands of years, it’s the capacity to hold a shared picture of the future we seek to create. When there is a genuine vision, people excel and learn, not because they are told to, but because they want to. But many leaders have personal visions that never get translated into shared visions that galvanize an organization. All too often, a company’s vision revolves around the charisma of a leader, or around a crisis that galvanizes everyone temporarily. But, people must pursue a lofty goal, not only in times of crisis but at all times. What is needed is a discipline for translating individual vision into shared vision – not a â€Å"cook book† but a set of principles and guiding practices. Team Learning The discipline of team learning starts with â€Å"dialogue,† the capacity of team members to suspend assumptions and enter into a genuine â€Å"thinking together.† Dialogue also involves learning how to recognize the patterns of interaction in teams that undermine learning. The patterns of defensiveness are often deeply engrained in how a team operates. If unrecognized, they undermine learning. If recognized, they can actually accelerate learning. Assessing the organization’s learning disability Most organizations learn poorly. The way they are designed and managed, the way people’s jobs are defined, and most importantly, the way people have been taught to think and interact, create fundamental learning disabilities. When people in organizations focus only on their position, they have little sense of responsibility for the results they produce. Moreover, when results are disappointing, we tend to find someone or something outside ourselves to blame when things go wrong. All too often, â€Å"proactiveness† is reactiveness in disguise. True proactiveness comes from seeing how we contribute to our own problems. Actions in organizations are dominated by concern with events: last month’s sales, the new budget cuts, the last quarter’s earnings, who just got promoted or fired, the new product our competitors just announced, the delay in launching a new product, and so on. Our fixation on events is actually part of our evolutionary programming. The irony is that today the primary threats to our survival, both of our organizations and of our societies, come not from sudden events but from slow, gradual processes. The arms race, environmental decay, the erosion of our society’s public education system, increasingly obsolete physical capital, and decline in design or product quality are all slow, gradual processes. Learning to see slow, gradual processes requires slowing down our frenetic pace and paying attention to the subtle as well as the dramatic. We learn best from experience but we never directly experience the consequences of many of our most important decisions. The most critical decisions made in organizations have systemwide consequences that stretch over years or decades. Systems thinking Systems thinking is the fifth discipline. It is the conceptual cornerstone that underlies all the five learning disciplines. The easy or familiar solution is not only ineffective; sometimes it is addictive and dangerous. The long-term, insidious consequence of applying non-systemic solutions is the increased need for more and more of the solution. There is a fundamental mismatch between the nature of reality in complex systems and our predominant ways of thinking about that reality. The first step in correcting that mismatch is to let go of the notion that cause and effect are close in time and space. Tackling a difficult problem is also a matter of seeing where the high leverage lies, a change which – with a minimum of  effort would lead to lasting, significant improvement. This point is quite similar to what Malcolm Gladwell makes in his book, â€Å"The Tipping Point†. Without systems thinking, there is neither the incentive nor the means to integrate the learning disciplines that have come into practice. Systems thinking is the cornerstone of how learning organizations think about their world. Sophisticated tools of forecasting and business analysis, as well as elegant strategic plans, usually fail to produce dramatic breakthroughs in managing a business. They are all designed to handle the sort of complexity in which there are many variables. Senge calls it detail complexity. But there is another type of complexity, where cause and effect are subtle, and where the effects over time of interventions are not obvious. This, Senge calls dynamic complexity. Conventional forecasting, planning, and analysis are not equipped to deal with dynamic complexity. When the same action has dramatically different effects in the short run and in the long run, there is dynamic complexity. When an action has one set of consequences locally and a very different set of consequences in another part of the system, there is dynamic complexity. When obvious interventions produce non-obvious consequences, there is dynamic complexity. The real leverage in most management situations lies in understanding dynamic complexity, not detail complexity. Unfortunately, most â€Å"systems analyses† focus on detail complexity, not dynamic complexity. Systems thinking is useful for describing a vast array of interrelationships and patterns of change. Ultimately, it helps us see the deeper patterns lying behind the events and the details. In mastering systems thinking, we give up the assumption that there must be an individual, or individual agent, responsible. Everyone shares responsibility for problems generated by a system. That does not necessarily imply that everyone involved can exert equal leverage in changing the system. But it discourages the search for scapegoats. In reinforcing processes, a small change builds on itself. A small action snowballs, with more and more and still more of the same, resembling compounding interest. But there’s nothing inherently bad about reinforcing loops. There are also â€Å"virtuous cycles† – processes that reinforce in  desired directions. If we are in a balancing system, we are in a system that is seeking stability. If the system’s goal is one we like, we will be happy. If it is not, we will find all our efforts to change matters frustrated until we can either change the goal or weaken its influence. Nature loves a balance – but many times, human decision makers act contrary to these balances, and pay the price. In general, balancing loops are more difficult to see than reinforcing loops because it often looks like nothing is happening. Leaders who attempt organizational change often find themselves unwittingly caught in balancing processes. To the leaders, it looks as though their efforts are clashing with the sudden resistance that seems to come from nowhere. In fact, the resistance is a response by the system, trying to maintain an implicit system goal. Until this goal is recognized, the change effort is doomed to failure. Systems seem to have minds of their own. This is specially evident in delays between actions and their consequences. Delays can make us badly overshoot the mark, or they can have a positive effect if we recognize them and work with them. That’s one of the lessons of balancing loops with delays. Aggressive action often produces exactly the opposite of what is intended. It produces instability and oscillation, instead of moving us more quickly toward our goal. Symptomatic intervention A reinforcing (amplifying) process is set in motion to produce a desired result. It creates a spiral of success but also creates inadvertent secondary effects (manifested in a balancing process) which eventually slow down the success. Instead of trying to push growth, we must remove the factors limiting growth. An underlying problem generates symptoms that demand attention. But such a problem is difficult for people to address, either because it is obscure or costly to confront. So people â€Å"shift the burden† of their problem to other solutions – well-intentioned, easy fixes which seem extremely efficient. Solutions that address only the symptoms of a problem, not fundamental causes, tend to have short term benefits at best. In the long term, the problem resurfaces and there is increased pressure for symptomatic response. Meanwhile, the capability for fundamental solutions  can atrophy. Symptomatic intervention; the â€Å"quick fix,† solves the problem symptom quickly, but only temporarily. In case of a more fundamental response to the problem, it takes longer to become evident. However, the fundamental solution works far more effectively. It may be the only enduring way to deal with the problem. The shifting burden structure explains a wide range of behaviors where well-intended â€Å"solutions† actually make matters worse over the long term. Opting for â€Å"symptomatic solutions† is enticing. Apparent improvement is achieved. Pressures, either external or internal, to â€Å"do something† about a vexing problem are relieved. But easing a problem symptom also reduces any perceived need to find a more fundamental solution. Over time, people rely more and more on the symptomatic solution. Without anyone making a conscious decision, people have â€Å"shifted the burden† to increasing reliance on symptomatic solutions. A special case of shifting the burden, which recurs with alarming frequency, is â€Å"eroding goals.† Whenever there is a gap between our goals and our current situation there are two sets of pressures: to improve the situation and to lower our goals. Dealing effectively with the situation requires a combination of strengthening the fundamental response and weakening the symptomatic response. Strengthening fundamental responses almost always requires a long-term orientation and a sense of shared vision. Weakening the symptomatic response requires willingness to face the truth about palliatives and â€Å"looking good† solutions. Leverage The bottom line of systems thinking is leverage. We must see where small actions and changes in structures can lead to significant, enduring improvements. The best results come not from largescale efforts but from small well-focused actions. Nonsystematic ways of thinking consistently lead us to focus on low-leverage changes, on symptoms where the stress is greatest. So we repair or ameliorate the symptoms. But such efforts only make matters worse in the long run. Systems thinking means organizing complexity into a coherent story that illuminates the cause of problems and how they can be remedied in enduring ways. The increasing complexity of today’s world leads many managers to assume that they lack the information they need to act effectively. The fundamental â€Å"information problem† faced by managers is not too little information but too much information. What we  most need are ways to know what is important and what is not  important, what variables to focus on and which to pay less attention to. This will generate leverage. Personal Mastery Organizations learn only if individual employees who learn. Individual learning is a necessary, through not sufficient condition for organizational learning. We must make personal mastery a part of our lives. This involves continually clarifying what is important to us. We often spend too much time coping with problems along our path that we only have a vague idea of what’s really important to us. We also need to see current reality more clearly. We’ve all known people entangled in counterproductive relationships, who remain stuck because they keep pretending everything is all right. In moving toward a desired destination, it is vital to know where we are now. The juxtaposition of vision and a clear picture of current reality generates â€Å"creative tension†. The essence of personal mastery is learning how to generate and sustain creative tension in our lives. The gap between vision and current reality is a source of creative energy. If there is no gap, there wo uld be no need for any action to move toward the vision. But when there is a gap between the goals and the current reality, negative emotion may also arise. We may lower our goals when we are unwilling to live with emotional tension. On the other hand, when we understand creative tension and allow it to operate by not lowering our vision, vision becomes an active force. Truly creative people use the gap between vision and current reality to generate energy for change. Mastery of creative tension leads to a fundamental shift in our whole posture toward reality. Current reality becomes our ally not an enemy. An accurate, insightful view of current reality is as important as a clear vision. If the first choice in pursuing personal mastery is to be true to our own vision, the second fundamental choice in support of personal mastery is commitment to the truth. What limits our ability to create what we really want is belief in our powerlessness and unworthiness. People cope with these problems in different ways. Letting our vision erode is one such strategy. The second is to try to  manipulate ourselves into greater effort toward what we want by creating artificial conflict, such as through avoiding what we do not want. Some people psyche themselves up to overpower all forms of resistance to achieving their goals. Willpower is so common among highly successful people that many see its characteristics as synonymous with success: a maniacal focus on goals, willingness to â€Å"pay the price,† ability to defeat any opposition and surmount any obstacle. Being committed to the truth is far more powerful than any technique. It means a relentless willingness to root out the ways we limit or deceive ourselves from seeing what is, and to continually challenge our theories or why things are the way they are. It means continually broadening our awareness. Focusing on the desired intrinsic result is a skill. For most of us, it is not easy at first, and takes time and patience to develop. As soon as we think of some important personal goal, almost immediately we think of all the reasons why it will be hard to achieve – the challenges we will face and the obstacles we will have to overcome. While this is very helpful for thinking through alternative strategies for achieving our goals, it is also a sign of lack of discipline when thoughts about â€Å"the process† of achieving our vision continually crowd out our focus on the outcomes we  seek. We must work at learning how to separate what we truly want, from what we think we need to do in order to achieve it. A useful starting exercise for learning how to focus more clearly on desired results is to take any particular goal or aspect of our vision. If we ask ourselves the question. â€Å"If I actually had this, what would it get me?†, the answer to that question reveals â€Å"deeper† desires lying behind the goal. In fact, the goal is actually an interim step to reach a more important result. Ultimately, what matters most in developing the subconscious rapport characteristic of masters is the genuine caring for a desired outcome, the deep feeling that it is the â€Å"right† goal. The subconscious seems especially receptive to goals in line with our deeper aspirations and values. People with high levels of personal mastery do not set out to integrate reason and intuition. Rather, they achieve it naturally – as a by-product of their commitment to use all the resources at their disposal. They cannot afford to choose between reason  and intuition, or head and heart. The discipline of seeing interrelationships gradually undermines older attitudes of blame and guilt. We begin to see that all of us are trapped in structures embedded both in our ways of thinking and in the interpersonal and social milieus in which we live. Our knee-jerk tendency to find fault with one another gradually fades, leaving a much deeper appreciation of the forces under which we all operate. Mental Models New insights fail to get put into practice because they conflict with deeply held internal images of how the world works. That is why the discipline of managing mental models – surfacing, testing, and improving our internal pictures of how the world works holds the key to building learning organizations. The problems with mental models arise not because they are right or wrong but because we often act without being aware of them. The healthy corporations are ones which can systematize ways to bring people together to develop the best possible mental models for facing any situation at hand. Learning skills fall into two broad classes: skills of reflection and skills of inquiry. Skills of reflection concern slowing down our own thinking processes so that we can become more aware of how we form our mental models and the ways they influence our actions. Inquiry skills are concerned with how we operate in face-to-face interactions with others, especially in dealing with complex issues. People who become lifelong learners practice â€Å"reflection in action,† the ability to reflect on one’s thinking while acting. Our mind tends to move at lightning speed. We immediately â€Å"leap† to generalizations so quickly that we never think of testing them. Our rational minds are extraordinarily facile at â€Å"abstracting† from concrete particulars – substituting simple concepts for many details and then reasoning in terms of these concepts. But our very strengths in abstract conceptual reasoning also limit our learning, when we are unaware of our leaps from particulars to general concepts. Leaps of abstraction occur when we move from direct observations (concrete â€Å"data†) to generalization without testing. Leaps of abstraction impede learning because they become axiomatic. What was once an assumption becomes treated as a fact. To spot leaps of abstraction, we need to keep asking what we believe about the way the world works – the nature of business, people in general, and specific individuals. We need to ask â€Å"What is the ‘data’ on which this generalization is based?† We need to ask, â€Å"Am I willing to consider that this generalization may be inaccurate or misleading? This is a powerful technique for beginning to â€Å"see† how our mental models operate in particular situations. It reveals ways that we manipulate situations to avoid dealing with how we actually think and feel, and thereby prevent a counterproductive situation from improving. Most managers are trained to be advocates. In fact, in many companies, what it means to be a competent manager is to figure out what needs to be done, and enlist whatever support is needed to get it done. Individuals became successful in part because of their abilities to debate forcefully and influence others. Inquiry skills, meanwhile, go unrecognized and unrewarded. But as managers rise to senior positions, they confront more complex and diverse issues. Suddenly, they need to tap insights from other people. They need to learn. Now the manager’s advocacy skills become counterproductive. What is needed is blending advocacy and inquiry to promote collaborative learning. When operating in pure advocacy, the goal is to win the argument. When inquiry and advocacy are combined, the goal is no longer â€Å"to win the argument† but to find the best argument. When we operate in pure advocacy, we tend to use data selectively, presenting only the data that confirm our position. When we explain the reasoning behind our position, we expose only enough of our reasoning to â€Å"make our case,† avoiding areas where we feel our case might be weak. By contrast, when both advocacy and inquiry are high, we are open to disconfirming data as well as confirming data – because we are genuinely interested in finding flaws in our view. Likewise, we expose our reasoning and look for flaws in it, and we try to understand others†™ reasoning. Learning eventually results in changes in action, not just taking in new information and forming new â€Å"ideas.† That is why recognizing the gap between our espoused theories (what we say) and our â€Å"theories-in-use† (the theories that lay behind our actions) is vital. Otherwise, we may believe we’ve â€Å"learned† something just because we’ve got the new language or concepts to use, even though our behavior is completely unchanged. Systems thinking is equally important to working with mental models effectively. Most of our  mental models are systematically flawed. They miss critical feedback relationships, misjudge time delays, and often focus on variables that are visible or salient, not necessarily high leverage. Understanding these flaws can help to see where prevailing mental models will be weakest and where more than just â€Å"surfing† the mental models will be required for effective decisions. Ultimately, the payoff from integrating systems thinking and mental models will be not only improving our mental models but altering our ways of thinking. T his will result in shifting from mental models dominated by events to mental models that recognize longer-term patterns of change and the underlying structures producing those patterns. Shared vision Shared vision is vital for the learning organization because it provides the focus and energy for learning. While adaptive learning is possible without vision, generative learning, occurs only when people are striving to accomplish something that matters deeply to them. In fact, the whole idea of generative learning will seem abstract and meaningless until people become excited about some vision they truly want to accomplish.  Vision creates the spark, the excitement that lifts an organization out of the mundane. Shared vision fosters risk taking and experimentation. People know what needs to be done. Even if they don’t know how to do it, they keep experimenting till they succeed. But even when they experiment, there is no ambiguity at all. It’s perfectly clear why they are doing it. Organizations intent on building shared visions continually encourage members to develop their personal visions. They want people to have their own vision, not to â€Å"sign up† for someone else’s. That leads to compliance, not commitment. On the other hand, people with a strong sense of personal direction can join together to move toward what they truly want. Personal mastery is the bedrock for developing a shared vision. This means not only personal vision, but commitment to the truth and creative tension – the hallmarks of personal mastery. The origin of the vision is much less important than the process whereby it comes to be shared. It is not truly a â€Å"shared vision† until it  connects with the personal visions of people throughout the organization. In many organizations, most people are in states of formal or genuine compliance with the organization’s goals and ground rules. They go along with â€Å"the program,† sincerely trying to contribute. On the other hand, people in non-compliance or grudging compliance usually stand out. They are opposed to the goals or ground rules and let their opposition be known, either through inaction or through grudging obedience. An organization made up of genuinely compliant people will be very productive and cost effective. Yet, there is a world of difference between compliance and commitment. The committed person brings an energy, passion, and excitement that cannot be generated if he is only compliant. The committed person does not play by the â€Å"rules of the game.† He is responsible for the game. If the rules of the game stand in the way of achieving the vision, he will find ways to change the rules. A group of people truly committed to a common vision is an awesome force. They can accomplish the seemingly impossible. Building shared vision is actually only one piece of a larger activity: developing the â€Å"governing ideas† for the enterprise, its vision, purpose or mission, and core values. These governing ideas answer three critical questions: â€Å"What?† â€Å"Why?† and â€Å"How?† †¢ †¢ †¢ Vision is the â€Å"What?† – the picture of the future we seek to create. Purpose (or â€Å"mission†) is the â€Å"Why?† the organization’s answer to the question, â€Å"Why do we exist?† Core values answer the question â€Å"How do we want to act? A company’s values describe how the company wants life to be on a day-to-day basis, while pursuing the vision. There are two fundamental sources of energy that can motivate organizations: fear and aspiration. Fear can produce extraordinary changes for short periods, but aspiration is a continuing source of learning and growth. Vision spreads because of a reinforcing process of increasing clarity, enthusiasm, communication and commitment. As people talk, the vision grows clearer, enthusiasm for its benefit builds and the vision starts to spread in a reinforcing spiral of communication and excitement. Enthusiasm can also be reinforced by early successes in pursuing the vision. If the reinforcing process operates unfettered, it leads to continuing growth  in clarity and shared commitment toward the vision, among increasing numbers of people. But any of a variety of limiting factors can come into play to slow down this virtuous cycle. The visioning process can wither if, as more people get involved, the diversity of views dissipates focus and generates unmanageable conflicts. People see different ideal futures. Must those who do not agree immediately with the emerging shared vision change their views? Do they conclude that the vision is â€Å"set in stone† and no longer influenceable? Do they feel that their own visions even matter? If the answer to any of these questions is â€Å"yes,† the enrolling process can grind to a halt with a wave of increasing polarization. This is a classic â€Å"limits to growth† structure, where the reinforcing process of growing enthusiasm for the vision interacts with a â€Å"balancing process† that limits the spread of the vision, due to increasing diversity and polarization. In limits to growth structures, leverage usually lies in understanding the â€Å"limiting factor,† the implicit goal or norm that drives the balancing feedback process. In this case, that limiting factor is the ability (or inability) to inquire into diverse visions in such a way that deeper, common visions emerge. The visioning process is a special type of inquiry process. It is an inquiry into the future we truly seek to create. If it becomes a pure advocacy process, it will result in compliance, at best, not commitment. Approaching visioning as an inquiry process does not mean that we have to give up our views. On the contrary, visions need strong advocates. But advocates who can also inquire into others’ visions open the possibility for the vision to evolve, to become â€Å"larger† than our individual visions. Visions can die because people become discouraged by the apparent difficulty in converting them into reality. As clarity about the nature of the vision increases, so does the awareness of the gap between the vision and current reality. People become disheartened, uncertain, or even cynical, leading to a decline in enthusiasm. In this structure, the limiting factor is the capacity of people in the organization to â€Å"hold† creative tension, the central principle of personal mastery. This is why personal mastery is the â€Å"bedrock† for developing shared vision – organizations that do not encourage personal mastery find it very difficult to foster sustained commitment to a lofty vision. Emerging visions can also die because people get overwhelmed by the demands of current reality and lose their focus on the vision. The  limiting factor becomes the time and energy to focus on a vision. In this case, the leverage must lie in either in finding ways to focus less time and effort on fighting crises and managing current reality, or to break off those pursing the new vision from those responsible for handling â€Å"current reality.† A vision can die if people forget their connection to one another. This is one of the reasons that approaching visioning as a joint inquiry is so important. The spirit of connection is fragile. It is undermined whenever we lose our respect for one another and for each other’s views. We then split into insiders and outsiders – those who are â€Å"true believers† in the vision and those who are not.

Essay --

When World war 1 finally came to an end on November 11 1918, politicians had to work out a lasting peace so that no war like that would ever happen again. The treaty of Versailles was a peace treaty that was made by the main representatives of nations - Big 4(America, Italy, France, Great Britain) and was put into place after the ending of World War 1 to ensure peace throughout the nations or the world. Although the peace treaty was initially intended to establish long lasting peace, it was extremely unfair for Germany as it was strip of its war-making power, punished by losing territory, extreme military restrictions and placed sole responsibility for the war. Most of the defects of the treaty of Versailles can be blamed on the one-sided intentions and prejudice views by the decision makers, The Allied countries. This made the treaty unfair from the beginning, as it meant the big three could negotiate the conditions of the treaty to increase their personal benefit. For France, This was mainly because of the Franco-Prussian war of 1870-71. French Prime minister Georges Clemenceau felt that France had been humiliated and was burning to restore its reputation and crucially gain back the rich industrial land of Alsace and Lorraine which Germany had won of her. Although Britain had not been attacked directly like France was, the earlier arms race of military sources before the war started between these two nations had led to the consideration of struggle for colonial domination for Britain. In addition, the British prime minister David Lloyd George was also concerned with the preservation of the British Empire and the risk of future Germa n invasion. As a result, together with France, they forced Germany in the Treaty of Versai... ...se, left a legacy of bitterness and hatred in the hearts of the German citizens. Overall, despite the fact that world war one was a devastation to the entire Europe, which though Germany was wrongfully held accounted for in the Treaty of Versailles. That wasn’t really a treaty at all and in another words, Germany’s so-called punishment for having the biggest contributions for the war. The treaty had overly weakened Germany and gave the victory countries more economic benefits and power mainly on the west. Instead of having Germany to be blamed for sole responsibility of the war by stripping away almost everything from Germany so that it is impossible for them to ever rise again, the allies should have put into thought of maintaining a good diplomatic relationship with them and accept the fact that each country had at least some contributions and fault to the war. Essay -- When World war 1 finally came to an end on November 11 1918, politicians had to work out a lasting peace so that no war like that would ever happen again. The treaty of Versailles was a peace treaty that was made by the main representatives of nations - Big 4(America, Italy, France, Great Britain) and was put into place after the ending of World War 1 to ensure peace throughout the nations or the world. Although the peace treaty was initially intended to establish long lasting peace, it was extremely unfair for Germany as it was strip of its war-making power, punished by losing territory, extreme military restrictions and placed sole responsibility for the war. Most of the defects of the treaty of Versailles can be blamed on the one-sided intentions and prejudice views by the decision makers, The Allied countries. This made the treaty unfair from the beginning, as it meant the big three could negotiate the conditions of the treaty to increase their personal benefit. For France, This was mainly because of the Franco-Prussian war of 1870-71. French Prime minister Georges Clemenceau felt that France had been humiliated and was burning to restore its reputation and crucially gain back the rich industrial land of Alsace and Lorraine which Germany had won of her. Although Britain had not been attacked directly like France was, the earlier arms race of military sources before the war started between these two nations had led to the consideration of struggle for colonial domination for Britain. In addition, the British prime minister David Lloyd George was also concerned with the preservation of the British Empire and the risk of future Germa n invasion. As a result, together with France, they forced Germany in the Treaty of Versai... ...se, left a legacy of bitterness and hatred in the hearts of the German citizens. Overall, despite the fact that world war one was a devastation to the entire Europe, which though Germany was wrongfully held accounted for in the Treaty of Versailles. That wasn’t really a treaty at all and in another words, Germany’s so-called punishment for having the biggest contributions for the war. The treaty had overly weakened Germany and gave the victory countries more economic benefits and power mainly on the west. Instead of having Germany to be blamed for sole responsibility of the war by stripping away almost everything from Germany so that it is impossible for them to ever rise again, the allies should have put into thought of maintaining a good diplomatic relationship with them and accept the fact that each country had at least some contributions and fault to the war.

A Global Overview of a Fast Relief Market

A Project Report On A Global Overview Of A FAST RELIEF Market Submitted in Partial fulfillment for the requirement of the Degree of Master of Business Administration (International Business) from SUS College of engineering and technology,Tangori, Mohali.. Under the Guidance of: Submitted to: Mr. SUNIL Mr. ANIL Mr. PANKAJ SIR Submitted By: NANCY GOYAL MBA Acknowledgement I am very much thankful to Mr. Karun Narang (MD, Eastern Medikit Ltd. ) and Mr. D.Tyagi (AGM, Eastern Medikit Ltd) who allowed me to undergo summer training in their esteemed organization. This report deserves the special mention of few names, Mr. SUNIL PALand Mr. ANIL KUMAR SINGH , who guided me all the way and helped me at each of the stage. They helped me to gain knowledge about the various aspects of their organization. They shared their professional experiences, which will be very much useful for me in the long run. I would like to give a bunch of thanks to Mr. Bhupendra Singh, Mr. Krishna Sharma, Mr. V. P. Joshi , Mr. Jagmohan Roy, Mr. Pankaj Pandey, Mr. Amit Sharma, Mr. Guru Prasad, Mr. Pradeep Dua, Mr.Kunjal Patel, Mr. Ajay Sharma, Miss Piyali Chakraborty and Mr. Ankkur who helped me to improve my research work. I can not forget to thank all those people who directly or indirectly cooperated me during my training period. NANCY GOYAL SUS C. E. T TANGORI MOHALI.. INDEX * Introduction What is Fast Relief Medikit’s fast relief Details Competitors and Their Profile * SWOT Analysis PEST Analysis * Competitive analysis * Marketing mix * Strategies * Costs * Media costs Eastern Medikit Ltd Medikit is the India’s largest medical device export company Medikit has 5 manufacturing facilities in and around Gurgaon, covering 125,000 sq. ft with 25,000 sq. ft as class 10,000 and class 1,00,000 clean rooms. Our organizational strengths are rooted within Medikit's unique flexibility to evolve and improve products and processes by deployment of globally competent manufacturing practices. Read Chapter 8 Microbial GeneticsWith ongoing in-house development of proprietary equipment and manufacturing techniques, our research and development activities along with our exclusive design and development centre ensure that Medikit is customer-driven and stays ahead, always. FAST RELIEF Definition â€Å"Fast relief† is a pain reliever product of medikit ltd. It is a extra strong pain reliever product. The main competitors of this is MOOV and HIMANI FAST RELIEF.. The new launched product fast relief has a unique and ayurvedic composition elements.. like Oil of wintergreen 15. 0%Pudina ka phool 5% Tarpin tel 3% Nilgiri tel 2% Base (bees wax) q. s. All these ingredients provides ‘sootthing warmth’ to relieve pain instantly.. which is the requirement. Purpose The purpose of this product is basically to give relief instantly from the backache pain. It works with its special ingredients to give relief from the backache. Its main purpose is to give warmth and soothi ng feeling at the pain area and to give quick relief.It works like a miracle at the pain.. Company’s Product Details MedifinTM| |   FAST RELIEF from MEDIKIT | | | Geographic Markets:DELHI , UP, MUMBAI, VARANASI, CHENNAI, BANGLORE, CHANDIGARH, LUCKNOW.. | | Product Details | Benefits| Being in topical form it is devoid of all undesireable effects of oral route.. | So it helps to maintain the valid effects. | Soft and therapeutic. | Gives instant relief. | Starts work immediately after application. | Complies with standard and quality norms. | Attractive design and coloured packaging. | Gives satisfaction quickly.. Gives soothing warmth. | To improve the body muscles so that relive remains for more time. | No sideeffects . | An ayurvedic cure. | Topical preparation gives therapeutic effects only at the site of application that’s local relief.. | Cheap and economical. Specially for common man. | MARKETING OF THE PRODUCT.. INTRODUCTION.. MARKETING IS ONE OF THE IMPORTANT ASPECT OF ANY BUSINESS AND SO WE WOULD ANALYSE VARIOUS MARKETING STRATEGIES MAINLY PEST ANALYSIS AND SWOT ANALYSIS , COMPETITIVE ANALYSIS ARE BEEN DONE AND EXPLAINED IN THERE..MARKET SEGMENTATION AND TARGETING.. DELHI,UP,MUMBAI, VARANASI,BRALIEY,CHENNAI,BANGLORE, CHANDIGARH,LUCKNOW,MP,CALCUTTA. AGE- ABOVE 30 YEARS. GENDER- SPECIALLY FOR FEMALES. FAMILY SIZE- FOR BOTH BIG AND NUCLEAR FAMILIES SOCIO ECO CLASS- MIDDLE AND LOWER MIDDLE CLASS. PEST ANALYSIS.. Pest analysis stands for political,economical,social,and,technological analysis of macroenviornmental factors used in the environmental scanning component of strategic management. it is a part of the external analysis when onducting a strategic analysis or doing market research and gives a certain overview of the different macroenviornmental factors that the company has to take into the consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential,and direction for operations. . POLITICAL- Govt support. , no risk for OTC brands. ECONOMIC- It is cheap and economical.. as it is available in different-different small packaging. It enhances the GDP growth and liberlisation.SOCIAL- Its is a innovative product suits the demands of the changing preferences of the society. It is suitable for the needs and aspirations of the common individual. TECHNOLOGICAL- It is made by the use of best technological machines. It has given a quality packaging with double lamination on the outer and inner area of the tube. SWOT ANALYSIS. Swot analysis is a strategic planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture..STRENGTHS- It is an ayurvedic product. It is quick and instant pain reliever than any other relief balm. Its branding is fabulous and standardized Its channels of distribution and dedicated Employees working for its successful promotion. A huge capital investment.. WEAKNESS- It is a new product in the market. It has low market share now. OPPORTUNITIES- There is a huge market demanding innovation And change.Changing tastes and preferences of consumers. THREATS- The problem of brand loyality and mindset of Consumres regarding a specific product and its Quality. Popularity of competitive brands like moov. The condition of market is also a big threat. . POSITIONING STRATEGY.. The positioning strategy is an effective and important instrument for a business venture and for the product as well. As it causes the success of the product.. â€Å"FAST RELIEF† â€Å"AN AYURVEDIC CURE FOR YOUR PAIN†The positioning strategy should be strong and effective enough to make the product strong and popular.. TARGET AUDIENCE The main target audience are middle class family and low midlle class family woman, who works in the offices as well as in homes and have no time to go to doctors for their ignorable backaches.. INDUSTRY PROFILE Industry Definition â€Å"The Indian pha rmaceutical industry is a success story providing employment for millions and ensuring that essential drugs at affordable prices are available to the vast population of this sub-continent. † Richard GersterThe Indian Pharmaceutical Industry today is in the front rank of India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. A highly organized sector, the Indian Pharma Industry is estimated to be worth $ 4. 5 billion, growing at about 8 to 9 percent annually. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously.Playing a key role in promoting and sustaining development in the vital field of medicines, Indian Pharma Industry boasts of quality producers and many units approved by regulatory authorities in USA and U K. International companies associated with this sector have stimulated, assisted and spearheaded this dynamic development in the past 53 years and helped to put India on the pharmaceutical map of the world. The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades.The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share. It is an extremely fragmented market with severe price competition and government price control. The pharmaceutical industry in India meets around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles. There are about 250 large units and about 8000 Small Scale Units, which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units).These units produce the complete range of pharmaceutical f ormulations, i. e. , medicines ready for consumption by patients and about 350 bulk drugs, i. e. , chemicals having therapeutic value and used for production of pharmaceutical formulations. Following the de-licensing of the pharmaceutical industry, industrial licensing for most of the drugs and pharmaceutical products has been done away with. Manufacturers are free to produce any drug duly approved by the Drug Control Authority.Technologically strong and totally self-reliant, the pharmaceutical industry in India has low costs of production, low R&D costs, innovative scientific manpower, strength of national laboratories and an increasing balance of trade. The Pharmaceutical Industry, with its rich scientific talents and research capabilities, supported by Intellectual Property Protection regime is well set to take on the international market. ADVANTAGE IN INDIA Competent workforce: India has a pool of personnel with high managerial and technical competence as also skilled workforce. It has an educated work force and English is commonly used. Professional services are easily available. Cost-effective chemical synthesis: Its track record of development, particularly in the area of improved cost-beneficial chemical synthesis for various drug molecules is excellent. It provides a wide variety of bulk drugs and exports sophisticated bulk drugs. Legal & Financial Framework: India has a 53 year old democracy and hence has a solid legal framework and strong financial markets. There is already an established international industry and business community.Information & Technology: It has a good network of world-class educational institutions and established strengths in Information Technology. Globalization: The country is committed to a free market economy and globalization. Above all, it has a 70 million middle class market, which is continuously growing. Consolidation: For the first time in many years, the international pharmaceutical industry is finding great opportun ities in India. The process of consolidation, which has become a generalized phenomenon in the world pharmaceutical industry, has started taking place in India.THE GROWTH SCENARIO India's US$ 3. 1 billion pharmaceutical industry is growing at the rate of 14 percent per year. It is one of the largest and most advanced among the developing countries. Over 20,000 registered pharmaceutical manufacturers exist in the country. The domestic pharmaceuticals industry output is expected to exceed Rs260 billion in the financial year 2002, which accounts for merely 1. 3% of the global pharmaceutical sector. Of this, bulk drugs will account for Rs 54 bn (21%) and formulations, the remaining Rs 210 bn (79%).In financial year 2001, imports were Rs 20 bn while exports were Rs87 bn. The above graph shows the percentage of pharmaceutical products export by various countries. (SOURCE Competitiveness of the Indian pharmaceutical industry in the new product patent regime a report by FICCI) RESEARCH AND DEVELOPMENT Drug discovery is the process by which potential drugs are discovered or designed. In the past most drugs have been discovered either by isolating the active ingredient from traditional remedies or by serendipitous discovery.Modern biotechnology often focuses on understanding the metabolic pathways related to a disease state or pathogen, and manipulating these pathways using molecular biology or Biochemistry. A great deal of early-stage drug discovery has traditionally been carried out by universities and research institutions. Drug development refers to activities undertaken after a compound is identified as a potential drug in order to establish its suitability as a medication. Objectives of drug development are to determine appropriate Formulation and Dosing, as well as to establish safety.Research in these areas generally includes a combination of in vitro studies, in vivo studies, and clinical trials. The amount of capital required for late stage development has mad e it a historical strength of the larger pharmaceutical companies Often, large multinational corporations exhibit vertical integration, participating in a broad range of drug discovery and development, manufacturing and quality control, marketing, sales, and distribution. Smaller organizations, on the other hand, often focus on a specific aspect such as discovering drug candidates or developing formulations.Often, collaborative agreements between research organizations and large pharmaceutical companies are to explore the potential of new drug substances formed The cost of innovation Drug discovery and development is very expensive; of all compounds investigated for use in humans only a small fraction are eventually approved in most nations by government appointed medical institutions or boards, who have to approve new drugs before they can be marketed in those countries.Each year, only about 25 truly novel drugs (New chemical entities) are approved for marketing. This approval come s only after heavy investment in pre-clinical development and clinical trials, as well as a commitment to ongoing safety monitoring. Drugs which fail part-way through this process often incur large costs, while generating no revenue in return. If the cost of these failed drugs is taken into account, the cost of developing a successful new drug (New chemical entity or NCE), has been estimated at about 1 billion USD.A study by the consulting firm Bain ; Company reported that the cost for discovering, developing and launching (which factored in marketing and other business expenses) a new drug (along with the prospective drugs that fail) rose over a five year period to nearly $1. 7 billion in 2003. These estimates also take into account the opportunity cost of investing capital many years before revenues are realized (see Time-value of money). Because of the very long time needed for discovery, development, and approval of pharmaceuticals, these costs can accumulate to nearly half the total expense.Some approved drugs, such as those based on re-formulation of an existing active ingredient (also referred to as Line-extensions) are much less expensive to develop. The consumer advocacy group Public Citizen suggests on its web site that the actual cost is under $200 million, about 29% of which is spent on FDA-required clinical trials. For me-too-drugs and for generics, the cost are even less. Calculations and claims in this area are controversial because of the implications for regulation and subsidization of the industry through federally funded research grants.Controversy about drug development and testing There have been increasing accusations and findings that clinical trials conducted or funded by pharmaceutical companies are much more likely to report positive results for the preferred medication. In response to public outcry about specific cases in which unfavorable data from pharmaceutical company-sponsored research was suppressed, the Pharmaceutical Research and Manufacturers of America have published new guidelines urging companies to report all findings and limit the financial involvement in drug companies of researchers.As a result of this public outcry and Pharma response the US congress signed into law a bill which requires phase II and phase III clinical trials to be registered by the sponsor on the NIH website Drug researchers not directly employed by pharmaceutical companies often look to companies for grants, and companies often look to researchers for studies that will make their products look favorable. Sponsored researchers are rewarded by drug companies, for example with support for their conference/symposium costs.Lecture scripts and even journal articles presented by academic researchers may actually be ‘ghost-written' by pharmaceutical companies. Some researchers who have tried to reveal ethical issues with clinical trials or who tried to publish papers that show harmful effects of new drugs or cheaper alternative s have been threatened by drug companies with lawsuits. Product approval in the US In the United States, new pharmaceutical products must be approved by the FDA as being both safe and effective.This process generally involves submission of an Investigational new drug filing with sufficient pre-clinical data to support proceeding with human trials. Following IND approval, three phases of progressively larger human clinical trials may be conducted. Phase I generally studies toxicity using healthy volunteers. Phase II can include Pharmacokinetics and Dosing in patients, and Phase III is a very large study of efficacy in the intended patient population. A fourth phase of post-approval surveillance is also often required due to the fact that even the largest clinical trials cannot effectively predict the prevalence of rare side-effects.Post-marketing surveillance ensures that after marketing the safety of a drug is monitored closely. In certain instances, its indication may need to be li mited to particular patient groups, and in others the substance is withdrawn from the market completely. Questions continue to be raised regarding the standard of both the initial approval process, and subsequent changes to product labeling (it may take many months for a change identified in post-approval surveillance to be reflected in product labeling) and this is an area where congress is active. The FDA provides information about approved drugs at the Orange Book site. In the UK, the British National Formulary is the core guide for pharmacists and clinicians. Orphan drugs There are special rules for certain rare diseases (â€Å"orphan diseases†) involving fewer than 200,000 patients in the United States, or larger populations in certain circumstances. Because medical research and development of drugs to treat such diseases is financially disadvantageous, companies that do so are rewarded with tax reductions, fee waivers, and market exclusivity on that drug for a limited t ime (seven years), regardless of whether the drug is protected by patents.Industry revenues For the first time ever, in 2006, global spending on prescription drugs topped $643 billion, even as growth slowed somewhat in Europe and North America. The United States accounts for almost half of the global pharmaceutical market, with $289 billion in annual sales followed by the EU and Japan. Emerging markets such as China, Russia, South Korea and Mexico outpaced that market, growing a huge 81 percent. US profit growth was maintained even whilst other top industries saw slowed or no growth. Despite this, â€Å".. he pharmaceutical industry is — and has been for years — the most profitable of all businesses in the U. S. In the annual Fortune 500 survey, the pharmaceutical industry topped the list of the most profitable industries, with a return of 17% on revenue. † Pfizer's cholesterol pill Lipitor remains the best-selling drug in the world for the fifth year in a row. Its annual sales were $12. 9 billion, more than twice as much as its closest competitors: Plavix, the blood thinner from Bristol-Myers Squibb and Sanofi-Aventis; Nexium, the heartburn pill from AstraZeneca; and Advair, the asthma inhaler from GlaxoSmithKline.IMS Health publishes an analysis of trends expected in the pharmaceutical industry in 2007, including increasing profits in most sectors despite loss of some patents, and new ‘blockbuster' drugs on the horizon. Teradata Magazine predicted that by 2007, $40 billion in U. S. sales could be lost at the top 10 pharma companies as a result of slowdown in R&D innovation and the expiry of patents on major products, with 19 blockbuster drugs losing patent. STEPS TO STRENGTHEN THE INDUSTRY Indian companies need to attain the right product-mix for sustained future growth.Core competencies will play an important role in determining the future of many Indian pharmaceutical companies in the post product-patent regime after 2005. Indian companies, in an effort to consolidate their position, will have to increasingly look at merger and acquisition options of either companies or products. This would help them to offset loss of new product options, improve their R&D efforts and improve distribution to penetrate markets. Research and development has always taken the back seat amongst Indian pharmaceutical companies.In order to stay competitive in the future, Indian companies will have to refocus and invest heavily in R&D. The Indian pharmaceutical industry also needs to take advantage of the recent advances in biotechnology and information technology. The future of the industry will be determined by how well it markets its products to several regions and distributes risks, its forward and backward integration capabilities, its R&D, its consolidation through mergers and acquisitions, co-marketing and licensing agreements. INTRODUCTION TO EASTERN MEDIKIT LTDCOMPANY PROFILE â€Å"A company empowered by one mission †“to place itself on the world map. An enterprise propelled by one force-that synergizes its energies to charter unexplored markets. Organizations fuelled by one dream-to transform competition into opportunity. † Eastern Medikit Ltd Laboratories Ltd. was incorporated in June 1961, in the name of M/S LEPITIT EASTERN MEDIKIT LTD LABORATORIES LTD and it commenced its business in MARCH 1962, in technical and financial collaboration with an international company named LEPTIT SPA, MILAN, ITALY.Eastern Medikit Ltd Laboratories Pvt. Ltd. merged with â€Å"Leptit Eastern Medikit Ltd Laboratories Pvt. Ltd. † in 1962 Eastern Medikit Ltd and company also merged with this company in 1966. The collaboration arrangement with M/S LEPTIT was terminated in 1966; after which Indian nationals acquired the entire share capital of the company. Therefore the word Leptit was removed from the name of the company. The name is known as EASTERN MEDIKIT LTD LABORATORIES LIMITED. In 1973 the compan y issued shares to the general public and became a full fledged PUBLIC LIMITED COMPANY.Today, Eastern Medikit Ltd has emerged as a Leading Pharmaceutical Company on the Indian firmament, with the second largest market share and enjoys an enviable reputation for its high standard of ethics and quality around its core strength of anti-infective, it has produced new brands in emerging therapeutic areas like cardiovascular, central nervous system and nutritional. supporting this expansion, the company has invested in world class manufacturing infrastructure that leverages India’s comparative cost advantage and skilled manpower, while delivering international quality.The company’s drive for Internationalism is guided by the well planned brand strategy that covers some of the world emerging markets like China, cis, Central Europe and Latin America . Its position today is in league of the Top Ten Pharmaceutical companies of three world an decent ranking as the eleventh larges t company in the international generics space is the resounding endorsement of its strategic mind. It is clear that for a long time, the dominant share of revenues of the company would continue to come from the ever expanding global generics market.Hence the intent of Eastern Medikit Ltd mission is to achieve a sustained growth rate through the continuous pursuit of innovation phase one trials for pervasion, a compound for treating prosthetic males have been completed. Phase 1 trials with clafrinast, an asthma compound is an important step towards research based value creation. This company also had success with Ciplofloxacine, an ingenious form, created through the novel drug delivery systems research.As the demand of the bulk drugs inside the country and abroad was increasingly rapidly a new, plant was set up at Toansa near Ropar in 1987. This was a higher capacity plant designed to cater to the present and future needs, initially antibiotics like Ampicillin, Trihydrate and Doxycy cline were manufactured. Later, on the other drugs like Cephalexin monohydrate and Ranitidine were also prepared. The plant at Toansa was designed to meet the stringent standards set by the Food and Drug Administration (FDA) of U. S. A.This plant has been approved by FDA and this will open up American and other newer markets for Eastern Medikit Ltd’s products At present Eastern Medikit Ltd have four plants for the manufacture of bulk drugs two at Mohali, one at Dewas (M. P) AND Another at Toansa near ROPAR. At present, Eastern Medikit Ltd is the second most Indian company engaged in the manufacturing of Pharmaceuticals, Bulk Drugs and Fine Chemicals. EASTERN MEDIKIT LTD’s vast range of highly pure laboratory reagent and chemicals enjoy a place of pride in the market.IT trends, has rebuilt As a step towards leveraging information for value creation using its information backbone around an ERP application, along the focus on reengineering several business processes aroun d the internet and has putting place business solutions that challenge existing ways of doing Business. The undying spirit of the company’s human assets and their intensive competitive and entrepreneurial energy has played a great part in transforming the company into a multicultural and multiracial team.Today, Eastern Medikit Ltd is the largest exporter accounting for 12% of the industry exports pharmaceutical substance and dosages forms to over 50 countries with the internationals sales comprising of 45% of the total turnover. VISION: GARUDA During the year 2002, the company has evolved a 10-year vision till 2012, for sustaining significant growth consistent with its mission to be an international research based Pharmaceutical Company, under the rubric ‘Vision Garuda’, with increasing emphasis on Novel Drug Delivery Systems Research (DDR).In licensing and out licensing, relationship with other important pharmaceutical entities, expansion of manufacturing facili ties both in India and strategic overseas locations, revamping of organizational structures to cater to the wider and more dispersed span of operations, and streamlining and standardizing the business processes through out the global organization, are other areas that receive focus and attention of management on priority. Mission â€Å"To become a Research based International pharmaceutical company† Vision-2012 Achieve significant business inProprietary prescription products By 2012 With a strong presence in developed markets Aspirations-2012 Aspire to be a$5 billion company Become a Top 5 global generics player Significant income from Proprietary products BOARD OF DIRECTORS At the helm entire operations is the experience and able direction of the people who make it all happen. Eastern Medikit Ltd acknowledges their inspiring stewardship and indefatigable work. * Mr. Tejendra Khanna(Chairman) * Mr. D. S. Brar (CEO $ Managing Director) * Mr. V. K. Kaul (Whole Time Director) * Dr.Brian Tempest (Whole Time Director) * Mr. Surendera Daulet Singh * Mr. Harpal Singh * Mr J. W. Balani * Mr. N. Kampani * Mr. V. Bharat Ram * Mr. Vivek Mehra Mr. Tejendra Khanna Mr. Tejendra Khanna was elected Chairman at a meeting of the Board of Directors of Eastern Medikit Ltd Laboratories Limited held at New Delhi, on July 5, 1999. Mr. Khanna, former Commerce Secretary to the Government of India, and a former Lieutenant Governor of Delhi is widely regarded as an expert in International Trade and Public Administration. Mr. D. S. BrarHe was instrumental in developing the Pharmaceutical exports business of the company in early 80’s, which later became synonymous with major growth and expansion of company’s portfolio. In addition to the International business, he looked after the Animal Healthcare & OTC businesses of the company. In 1986, he took over the Pharma business in India along with Chemical Manufacturing Operations. In early 90’s he led the companyâ⠂¬â„¢s expansion into overseas markets creating joint ventures, affiliates and subsidiaries in major countries like China, Russia, U. K. , South Africa and the USA.In 1996, he took over as the President of the company. Mr. V. K. Kaul Graduated in 1964 (B. Sc. Hons, Physics) from Ramjas College, University of Delhi, Mr. V. K Kaul joined the Institute of Chartered Accountants of India F. C. A. He is recognised in the industry for his vast experience and variegated knowledge. Dr Brian W. Tempest Dr Tempest joined Eastern Medikit Ltd as Regional Director- Europe, CIS & Africa in 1995 and subsequently took charge of Eastern Medikit Ltd’s worldwide pharmaceuticals business as President-Pharmaceuticals in the year 2000. In July 2001 he was appointed on the Board of Directors of Eastern Medikit Ltd.Dr. Tempest, 54, has worked in the Pharmaceutical Industry for 28 years, bringing in a wealth of global pharmaceutical experience and expertise. He has worked with leading multi-national c ompanies across several international markets including USA, Japan, Europe, China and other countries in Africa and Asia-Pacific. His unique combination of experience with both research-based and generic companies will be an asset in driving the company's growth in times ahead. Dr. Tempest is a Bachelor of Science with Honors from Aston University, specializing in Chemistry.He followed it up with a PhD in Polymer Chemistry from Lancaster University. Mr. Malvinder Mohan Singh Mr. Malvinder Mohan Singh is an Honors Graduate in Economics from Delhi University followed by a Masters Degree in Business Administration from Duke University, USA. He started his career with the American Express Bank and joined Eastern Medikit Ltd in May 1998. After holding several positions in the Company, has been appointed as â€Å"President Pharmaceuticals and Whole-time Director†, Eastern Medikit Ltd Laboratories Limited effective January 1, 2004OPERATING JOINT VENTURES AND SUBSIDIARIES BRAZIL:East ern Medikit Ltd S. P. Medicamentos Ltd. CHINA:Eastern Medikit Ltd (Guangzhou China) Ltd. EGYPT:Eastern Medikit Ltd Egypt Ltd. GERMANY: Basics Gmb H. HONG KONG:Eastern Medikit Ltd (Hong Kong) Ltd. INDIA:Rexcel pharmaceuticals Ltd. , Solus pharmaceuticals Ltd. , Vidyut Travel Services ltd. IRELAND:Eastern Medikit Ltd Ireland Ltd. MALAYSIA:Eastern Medikit Ltd (Malaysia) Sdn. Bhd. NETHERLANDS:Eastern Medikit Ltd Pharmaceuticals B. V. NIGERIA:Eastern Medikit Ltd Nigeria Ltd. PANAMA:Eastern Medikit Ltd Panama SA.POLAND:Eastern Medikit Ltd Poland Sp. Zo. SOUTH AFRICA:Eastern Medikit Ltd (SA) (Pty. ) Ltd. THAILAND:Unichem pharmaceuticals LTD. , Unichem Distributors Ltd. Part, Eastern Medikit Ltd Unichem CO. Ltd. U. K:Eastern Medikit Ltd (UK) Ltd USA: Eastern Medikit Ltd pharmaceuticals Inc. Ohm Laboratories Inc. , Eastern Medikit Ltd Schein Pharma, LLC VIETNAM: Eastern Medikit Ltd Vietnam Company Ltd. ALLIED BUSINESSES Eastern Medikit Ltd Animal Health The Animal Health division saw an enco uraging growth despite the prevailing poor market conditions.The division grew at twice the growth rate recorded in the industry. On the basis of having a vast dome satiated animal population, the livestock, poultry business and pets business are among the fastest growing sectors in India. A vast infrastructure of veterinary colleges, agricultural institutes, technologists and researchers are helping farmers to source healthy, cost effective products. In conjunction with the present scenario, the AHC division of Eastern Medikit Ltd Laboratories Limited has introduced several latest generation products. Eastern Medikit Ltd Fine Chemicals Limited (RFCL)The division ranked 4th in the industry and captured 11% market share. RANKEM is established as a powerful brand, RFCL's brand for its range of Reagents is now synonymous with excellence in reagents and fine chemicals in the country. The focus of business remains on developing extensive customer relations; enhancing service levels and e nriching the product mix with the help of a qualified and competent marketing and sales team Diagnostics The diagnostics division has aggressively focused on market expansion activities based on strategy of reliability, quality products and efficient service.Introduction of products in ‘Point of Care’ markets has expanded market presence and over the next 1 – 2 years this segment will see considerable expansion in line with world trends. The Dade Behring segment has increased its installation base by 60% in leading hospitals and laboratories. Plans are afoot for the introduction of more parameters for the ‘Point of Care’ market and the launch of Special Chemistries, a range of drug assays, plus an entry into automated microbiology in both the Base and Dade Behring business areas. The company has also witnessed significant milestones in the area of Novel Drug Delivery Systems (NDDS).The company has entered into strategic business arrangements with com panies such as Bayer AG, Glaxo-Wellcome, Eli-Lilly etc. for production and co-marketing operations. Many innovative developments have been taking place in recent times. The company’s research team is capable of developing one NDDS product every 12 to 18 months. Also, two new products: Roletra-D and Altiva-D, will soon be launched in India. In order to expand and promote global growth, the company opened several new markets during the year, notably in Brazil, where 25 filings were undertaken in a span of 2-3 months.The company has planned to build and protect intellectual property with the help of IPC, which addresses all matters pertaining to patents. CQA supervises the implementation of standard operating procedures (SOP) and ensures compliance to corporate quality assurance policy in all technological operations of the organization. The company is committed to invest 6% of the sales in R and D by 2003, of which 7% of the expenditure will be earmarked for research on New Dru g Discovery and Novel Drug Delivery Systems.There will be continuous emphasis on augmenting R and D performance and productivity with advanced scientific and technological tools. VALUES OF EASTERN MEDIKIT LTD LABORATORIES LIMITED 1. Achieving customer satisfaction is fundamental to their business. 2. Practice dignity and equity in relationships and provide opportunities for people to realize their full potential. 3. Ensure profitable growth and enhance wealth of shareholders. 4. Foster mutually beneficial relationships with all their business partners. 5. Manage their operations with concern for safety and environment. 6.Be a responsible corporate citizen. OBJECTIVES OF EASTERN MEDIKIT LTD LABORATORIES LTD. 1. To be a leader in the Pharmaceutical industry. 2. To be a profitable company with a steady growth in earnings. 3. To set an example as a socially responsible company. 4. To diversify in health care related areas. 5. To strive for excellence and continuous improvement in all sp heres. 6. To improve the quality of life of people by providing better services and quality products. Environment, Health and Safety [EHS] Caring for the Environment is a core corporate value and as a part of this commitment.The Company enunciated its EHS policy in 1993. The Company’s EHS policy provides for the creation of a safe and healthy workplace and a clean environment for employees and the community. It aims at higher international standards in plant design, equipment selection, maintenance and operations. The policy seeks to manufacture products safely and in an environmentally responsible manner. The implementation of the EHS Policy is ensured by institutionalizing a robust EHS Management system, adequately supported by well defined organizational structure.As a part of EHS processes at the corporate level, besides laying down guidelines on systems, policy and training, the corporate EHS office monitors compliance, maintains and disseminates information on laws and regulations. EHS performance review meetings are held on regular basis to monitor the progress against agreed EHS improvement plans. Close cooperation between all units and individuals is the key to maintaining high standards of environment protection and safety in all the plants.The key processes at location level comprise of regular safety surveillance, inspections & audits, Permit to work system for operational / maintenance safety, Fire prevention & protection activities, operation of the ETP/Incinerator, disposal activities related to hazardous wastes, regular monitoring of the environment internally and also through approved laboratories. Monthly reports address EHS initiatives, compliance & various records under the statutory requirement, training of employees including contract employees on EHS awareness, interaction with the residential associations/nearby community etc. celebration of National safety day, fire day, Environment day etc. for EHS awareness among employees. Th e manufacturing facilities for bulk drugs and dosage forms comply with the stringent requirements of Good Manufacturing Practices (GMP) and Good Laboratory Practices (GLP) and are approved by International health and regulatory Agencies like FDA – USA, MCA – UK, WHO etc. These practices and approvals ensure that an effective framework is always in place, not only for manufacture of high quality products, but also for effective use of resources and reduction of wastes as well as high safety & hygiene standards.Eastern Medikit Ltd has made significant improvements in process safety of the existing manufacturing facilities by providing extensive instrumented safety protection systems. The intended safety features are incorporated in the basic design of the new projects. Investments have been made on process improvements as well as effluent treatment plant up-gradation using the latest membrane based technology, multi-effect thermal evaporation system and state-of-the-art Incinerator. These investments have helped to reduce discharges of contaminants into the environment.With the facilities installed at Toansa for recycling of the treated effluent, the site has achieved the status of â€Å"zero discharge site†. The Company also engages with the concerned authorities and industry in devising responsible laws, regulations and standards and thus making safety, occupational health & environmental information and expertise available to its employees and the community at large. Eastern Medikit Ltd has made EHS concerns and practices a necessary factor in appraising its employee performance.The Company also accords a very high priority to hygiene monitoring at work place and health assessment of all employees at site. The plant and processes are continuously upgraded to improve hygiene and health standards. Necessary training is imparted to the employees to enhance their awareness towards health related matters. Safety knowledge of the employees is c onstantly updated through various external and in-house training programs, including special training programs by overseas experts & consultants.Moving up the value chain, the company identified Consumer Healthcare as its new business area in the year 2001. Eastern Medikit Ltd Global Consumer Healthcare (RGCH) was launched in October 2002 with a portfolio of 4 switch brands: Revital, Pepfiz, Gesdyp & Garlic Pearls. Since these brands were already popular amongst consumers and represented the leading common ailment categories like VMS (Vitamins & Minerals Supplement), this portfolio was carefully created for the introduction of RGCH to the Indian market.Subsequently in 2004, RGCH launched its first herbal range of products through New Age Herbals (NAH) with products offering remedy in categories of Cough & Cold (Olesan Oil & Cough Syrups) and Appetite Stimulant (Eat Ease). VARIOUS DIVISIONS OF EASTERN MEDIKIT LTD LABORATORIES LTD. 1. Chemical Division 2. Diagnostic Division 3. Stan c are Division 4. Curradia Division 5. International Division 6. Pharmaceutical Division 7. Technical Division 8. Corporate Division 9. Animal Health Care Division DIVISIONS IN VARIOUS GEOGRAPHICAL AREAS 1. India and Middle East 2. Europe, CIS and Africa 3.Asia Pacific and Latin America 4. North America JOINT VENTURE OF THE COMPANY. 2000Eastern Medikit Ltd files IND Application for Asthma Molecule- RBx4638, after successful completion of pre-clinical studies. Eastern Medikit Ltd acquires Bayer’s Generics business (trading under the Name of Basics) in Germany. Eastern Medikit Ltd forays into Brazil, the largest pharmaceutical market in South America and achieves global sales of U. S. $ 2. 5 million in this market. 2001Eastern Medikit Ltd took a significant step forward in Vietnam by initiating the Setting up of a new manufacturing facility with an investment of U.S. $ 10 million. Eastern Medikit Ltd achieved a turnover of U. S. $ 502 million for the year 2002 and moved closer to achieving a target of 1 billion dollar by 2004. 2002Receives approval from FDA to market Midazolam Hydrochloride Syrup 2 Mg base/ ml. Eastern Medikit Ltd receives and approval from FDA to manufacture and market Cefpodoxime Proxetil for Oral Suspension, Lisinopril + Hydrochlorothiazide Tablets Us, Terazosin Hydrochloride Capsules and Amoxcillin Oral suspension USP. Heralding the company’s entry into the Indian OTC market. 003Eastern Medikit Ltd received the economic times award for corporate excellence-for the company for year. Eastern Medikit Ltd signed an agreement toacquire RPG(aventis) SA along with its fully owned subsidiary,OPIH SARL,in france 2004 Eastern Medikit Ltd launched its first range of herbal projects. 2005 Acquisition of additional stake in Eastern Medikit Ltd Farmaceutica Ltda. , Brazil Eastern Medikit Ltd announced the acquisition of Be-Tabs Pharmaceuticals (Pty) Limited 2008Acquired by the Japanese giant, the $9. 62 billion Daiichi Sankyo, ranked No. in Ja pan BRIEF INTRO OF EASTERN MEDIKIT LTD PLANTS IN INDIA In the chemical division, various bulk drugs are manufactured. The chemical division had three units in Punjab. One is located at Toansa, two are located at Mohali and one unit is located at Dewas near Indore in Madhya Pradesh, where Ciprofloxacine is manufactured. In the plant of the chemical division, various drugs like Antibiotics, Anti-malarial, Antibacterial and Anti-ulcer are manufactured. One of the older plants of Eastern Medikit Ltd was closed after the accident in June 2003. he second one is still working The 1991, the Toansa plant started functioning in 1992 and the Dewas plant started functioning in 1999. Various plant heads independently manage all these plants. In each unit, separate facilities with respect to the manufacture of drugs, along with their manufacturing areas have been provided. This is required to reduce the chances of any cross contamination under the drug laws and to comply with good manufacturing p ractices. At Mohali plant, separate blocks have been provided for the preparation of each drug .The Toansa, Mohali and Dewas plants are planned in such a way that their system, facilities, manufacturing practices and standards meet the requirements of FDA. Mohali Plant also mainly in the manufacturing of Active Pharmaceutical Ingredients (API). The Plant is divided into two plant areas A8 and A9 THE VARIOUS DEPARTMENTS Human Resource Department The basic function of the human resource department in the modern corporate world is knowledge management. The HR department strives to maintain cohesiveness among employees. It also ensures interdepartmental cooperation in achieving targets.The appraisal system is also taken care by this department. The HR department delves deep into the employee’s psyche to analyze the positives and negatives of each employee, so that a proper system of delegation and / or empowerment can be evolved. Finance Department The finance department takes ca re of the regular financial needs of the company it ensures proper allocation of funds and takes care of the working capital requirements. It verifies capital raised by different departments and sends them for approval to the higher authorities. Stores DepartmentThe function of this department is to provide adequate and proper storage and preservation of various items to meet the demand of various other departments by proper issues and maintaining accounts of consumption. It also keeps a track of stock accumulation and abnormal consumption. Erection and Fabrication Department As the name suggests, this department identifies new projects and helps in erecting them. This department also undertakes major modifications of equipment. ERP Department ERP department helps to integrate the entire enterprise starting from the supplier to the customer, covering financial and human resources.This will enable the enterprise to increase productivity by reducing costs. It also ensures a single sol ution to the information needs of the whole organization. Production Department As a part of their on going commitment to produce hi-tech quality drugs and pharmaceuticals that take care of the specific needs of markets around the world, Eastern Medikit Ltd Laboratories Limited has increased the investment in the production department. It is the most important department of the company and has the following objectives: 1. Improving volume of production. 2.Reducing rejection rate. 3. Maintaining rework rate. Engineering Department This department undertakes building, construction and maintenance. Maintaining service facilities such as water, gas, heating, ventilation, air conditioning, painting and plumbing are some of the other areas dealt by this department. This department also helps in maintaining electrical equipments such as generators, transformers, telephone system and electrical installation. Purchase Department The purchase department provides material to the factory withou t which the wheels of machines cannot move.The various functions performed by this department include: Securing good vendor performance, including prompt deliveries of supplies of acceptable qualities. 1. To develop satisfactory sources of supply and maintaining good relationships with the suppliers. 2. To pay reasonably low prices. Quality Control/Quality Assurance Department The purpose of QC & QA departments is to ensure that the desired quality standard is achieved. It also ensures that the processing or fabrication of material conforms to the specific characteristics selected, to assure that the resulting product will in fact perform its intended function. PRODUCT REVIEWEastern Medikit Ltd’s therapeutic width covers five of the top six categories including Anti-infective, Gastrointestinal, Nutritionals, Cardiovascular, Central Nervous System, Respiratory, Dermatological and others. While anti-infective contribute 56% of the total sales, Eastern Medikit Ltd’s other brands like Simvotin and Storvas in the cardiovascular segment, Serlift in CNS and Revital and Riconia in Nutritionals, are on their way to success in multiple markets. During Jan – Dec 2000, amongst the top products of Eastern Medikit Ltd, Sporidex (Cephalexin) was the Number 1 brand, closely followed by Cifran (Ciprofloxacin).Anti – Infectives Anti- infective has been the main driver of Eastern Medikit Ltd’s sales. The important brands in this category are Cifran (Ciprofloxacin), Sporidex (Ciphalexin), Enhancin (Amoxyclav), Crixan (Clarithromycin), Vercef (Cefaclor), Oframax (Ceftriaxone), Cepodem (Cefpodoxime Proxetil), Zanocin (Ofloxacin), Ceroxim (Cefuroxime Axetil), and Loxof (Levofloxacin). Cifran (Ciprofloxacin) is the key brand in the anti- infective portfolio, with estimated sales of US $ 32 Mn, currently being marketed in 15 countries. Development of Ciprofloxacin once a day has been an important landmark achieved by Eastern Medikit Ltd.The product h as been licensed to Bayer. Cifran continues to be a dominant player in the quinolones market in India, China and Russia. Sporidex is another leading brand in Eastern Medikit Ltd’s product portfolio with worldwide annual sales of US $ 35 Mn. It is available in eight different dosage forms including capsules, dry powder for suspension, redimix, dispersible tablets, paediatric drops, soft gelatin capsules, sachet and advanced formulation for twice-daily administration. It is currently marketed in 15 countries. In India, Sporidex is the leading brand with a market share of 36% of the Cephalexin segment.Keflor is available in seven different dosage forms and is the third-largest selling brand for Eastern Medikit Ltd worldwide. The dosage forms list includes capsules, dry syrup, modified release tablets, dispersible tablets, drops and redimix. Enhancin is expected to be the leading product in Eastern Medikit Ltd’s product portfolio with estimated sales of US $ 45 Mn by the y ear 2005. The product will be rolled out to about 20 important markets during this period. Zanocin, with approximate sales of US $ 10 Mn, is the seventh-largest contributor to Eastern Medikit Ltd’s total sales.Cepodem is currently available in three different countries outside India, and will be rolled out to 13 different countries in the near future. Cardiovasculars Cardiovascular is projected to be the second-best category for Eastern Medikit Ltd. Statins have been the key drivers for this segment. The sale of Simvastatin has grown substantially in the past few years, a trend that is likely to continue in the future. In India, Simvotin (Simvastatin) is the market leader in the cholesterol reducer segment. Another leading brand in this category is Storvas (Atorvastatin).Storvas has been one of the fastest-ever to enter the top-300 brands list of the Indian pharma industry. Other global cardiovascular brands are Covance (Losartan) and Caslot (Carvedilol). Central Nervous Syst em The Central Nervous Segment is one of the important focus areas identified by Eastern Medikit Ltd, with Serlift being the key brand. In India, Serlift is number 1 amongst Sertraline brands. New product introductions will be drivers of growth in this category. Gastrointestinal Currently, gastrointestinal drugs are the second-largest category for Eastern Medikit Ltd.The key brands in this category include Histac and Romesac. The current annual sales of Ranitidine are estimated to be around US $ 16 Mn and the product is marketed in more than 20 countries. Rheumatologicals The first generation Cox-2 inhibitors principally drive worldwide growth in rheumatology. This category is estimated to grow exponentially for Eastern Medikit Ltd, with brands like Celecoxib. This year, Rofibax (Rofecoxib) introduced in India, has established itself as a leader in the Cox-2 inhibitor category and has overtaken all Celecoxib brands. It has been identified as a key Global brand for the future.Nutrito nals Nutritionals have been a major contributor to Eastern Medikit Ltd’s sales. Two of the important products in this category are Revital and Riconia. With annual sales estimated at about US $ 10 Mn, Revital contributes a significant share of total sales. It is a leading brand in India and has done exceedingly well in some parts of the world as an OTC product. Dermatologicals The dermatology category is mainly driven by India region and is likely to show a good growth pattern in the future. Some of the key brands doing well in this segment are Mobizox, Silverex, Moisturex, etc.INTRODUCTION TO CAPITAL STRUCTURE THEORY AND ANALYSIS This is a Report on the ‘Capital Structure and Capital Expenditure of Eastern Medikit Ltd Laboratories Ltd. ’. The purpose and scope of the project can be listed as: * Understanding the organizational structure and functioning of Eastern Medikit Ltd Laboratories Ltd. * Analysing and comparing the financial health of the firms in the Ind ian Pharma Industry. * Identifying and analysing the capital structure of Eastern Medikit Ltd. * Conducting a Review of the Capital Expenditure done at Eastern Medikit Ltd Laboratories Ltd. Identifying loopholes in the functioning and in the area of study and recommending the suggestions for the same. Following are the limitations of the study: * Balance sheets of only 3 years have been studied but the company is in operation for so many years. * Only specific tools (i. e. ratio analysis) have been used for data analysis, while so many other tools are also there. * Organizational rules & regulations. * Availability of data. Financial figures for 2008 of Eastern Medikit Ltd were not available. * Limitations of the financial tools used. MethodologyThe methodology adopted for the study was as follows: * Familiarization, examination and evaluation of the procedures relating to capital structure and capital expenditure. * Collection of relevant data form company records and cross checkin g of this data. * Calculations of financial ratios, parameter and norms, as also their financial implications. Broadly the data were collected for the report on the project work has been through the primary and secondary sources. The primary data is collected by various approaches so as to give a precise, accurate, realistic and relevant data.The main goal in the mind while gathering primary data was investigation and observation. The ends were thus achieved by a direct approach and personal observation from the officials of the company. The other staff members and the employees were interviewed for the sake of maintaining reasonable standard of accuracy. The secondary data as it has always been important for the completion of any report provides a reliable, suitable equate and specific knowledge. The annual reports, the fixed asset register and the Capex register provided the knowledge and information regarding the relevant subjects.The valuable cooperation and continued support ex tended by all associated personnels, head of the department, division and staff members contributed a lot to fulfil the requirement in the collection of data in order to present a complete report on the project work. Capital Structure: Theory and Analysis Capital Structure Financing decisions involve raising funds for the firm. It is concerned with formulation and designing of capital structure or leverage. The most crucial decision of any company is involved in the formulation of its appropriate capital structure.The best design or structure of the capital of a company helps the management to achieve its ultimate objectives of minimising overall cost of capital, maximising profitability and also maximising the value of the firm. The capital structure decision of a firm is concerned with the determination of debt equity composition. Capital structure ordinarily implies the proportion of debt and equity in the total capital of a company. The term capital may be defined as the long â €“ term funds of the firm. Capital is the aggregation of the items appearing on the left hand side of the balance sheet minus current liabilities.In other words capital may be expressed as follows: Capital = Total Assets – Current Liabilities. Further, capital of a company may broadly be categorised into equity and debt. The total capital structure of a firm is represented in the following figure: Established companies generally have track record of their profit earning capacity, which helps them to create their creditworthiness. The lenders feel safe to invest their funds in such companies. Thus, there is ample scope for this type of companies to collect debt. But a company cannot freely i. e. without having any limit.The company must have to chalk out a plan to collect a debt in such a way that the acceptance of debt becomes beneficial for the company in terms of increase in EPS, profitability and value of the firm. If the cost of capital is greater than the return, it will have an adverse effect on company’s profitability, value of the firm and its EPS. Similarly, if company is unable to repay the debt within the scheduled period it will affect the goodwill of the company in the credit market and consequently may create problems in future for collecting further debt.Other factors remaining constant, the company should select its appropriate capital structure with due consideration. Capital structure involves a choice between risk and expected return. The optimal capital structure strikes the balance between these risks and returns and thus examines the price of the stock. Significant variations with regard to capital structure can easily be noticed among industries and firms within the same industry. So it is difficult to generate the model capital structure for all business undertakings.The following is an attempt to consolidate the literature on various methods to suggested by researchers in arriving at optimal capital structure. Notatio ns used: * V = value of firm * FCF = free cash flow * WACC = weighted average cost of capital * rs and rd are costs of stock and debt * re and wd are percentages of the firm that are financed with stock and debt. Operating and Financial Leverages The term leverage refers to the ability of a firm in employing long – term funds having a fixed cost, to enhance returns to the owners. In other words everage is the employment of fixed assets or funds for which a firm has to meet fixed costs or fixed rate of interest obligation irrespective of the level of activities attained or the level of operating profit earned. Higher the leverage, higher the profits and vice – versa. But a higher leverage obviously implies higher outside borrowings and hence riskier if the business activity of the firm suddenly takes a dip. But a low leverage does not necessarily indicate prudent financial management, as the firm might be incurring an opportunity cost for not having borrowed funds at a fixed cost to earn higher profits.Operating Leverage Operating leverage is concerned with the operation of any firm. The cost structure of any firm gives rise to operating leverage because of the existence of fixed nature of costs. This leverage relates to the sales and profit variations. Operating Leverage =| Contribution| | EBIT| Contribution = Sales – Variable Costs EBIT = Earnings Before Interest and Taxes. Disadvantages of Operating Leverages * The reliability of operating ratios rests to a large extent on the correctness of the fixed costs identified with a product. Faulty apportionment would distort the usefulness of the ratio. The published accounts does not give details of the fixed cost incurred and the contribution from each product and for an outsider it is difficult to calculate the firm’s operating leverage. Firm’s cost structure and nature of the firm’s business affects operating leverage. A degree change in sales volume results in more tha n proportionate change (+/-) in operating (or loss) can be observed by use of operating leverage. Financial Leverage This ratio indicates the effects on earnings by rise of fixed cost funds. It refers to use the use of debt in the capital structure.Financial leverage arises when a firm deploys debt funds with fixed charge. The ratio is calculated with the following: * Earnings before interest and tax / Earnings after interest – The higher the ratio, the lower the cushion for paying interest on borrowings. A low ratio indicates a low interest outflow and consequently lower borrowings. A high ratio is risky and constitutes a strain on profits. This ratio is considered along with the operating ratio, gives a fairly and accurate idea about the firm’s earnings, its fixed costs and the interest expenses on long term borrowings. Earnings per Share – Higher financial leverage leads to higher EBIT resulting in higher EPS, if other things remain constant. Financial levera ge affects the variability and expected level of EPS. The more debt the firm employs the higher its financial leverage. Financial leverage generally raises expected EPS, but it also increases the riskiness of securities as the debt / asset ratio rises. Financial Leverage =| EBIT| | EBT| EBIT – Ea