Monday, September 30, 2019

Disruptive Innovation

1 Introduction This assignment provides the study on Disruptive Innovation using Clayton Christensen’s framework. Apart from this, this assignment also tells how the companies should react to the upcoming technologies and what should be the course of action for the same. 1. 1 Innovation There is no specific definition for innovation as such. But, according to me, innovation is creating something new or changing the old to achieve the competitive advantage and meet the increasing customer demands.This is achieved either by introducing new products, new ideas, and processes or just by changing the design of the product or the processes as per the customer demands. Innovating and creating new products and services has become very important topic of concern for all the organizations in today’s rapidly changing world. If you are not innovative, you may never know when your products become obsolete. 1. 2 Types of Innovation There are three main types of Innovations: Sustainin g innovation: This type of innovation needs to be developed to ensure that the customers are satisfied with the products and services and to stay in the game.For example upgrading the processor from dual core to Intel core i3 to i5 and enhancing the performance of computers. Breakthrough Innovations: These innovations upgrade the level of existing category of products or services. For example I phone was a breakthrough innovation in the world of mobile market. It changed the perspective of the customers and eventually other companies started following the trend. Disruptive Innovation: In this type of innovation a new product or a sevice is introduced that creates a new market or massively alters an old one so that old players cannot compete.They are called disruptive because they disrupt the current behavior of the market. For example Introduction of computers was a disruptive innovation for companies who manufactured typewriters. According to Clayton Christensen Disruptive innovati on offers lower performance initially as per the current market demand. But, at the same time it provides some new attributes which prosper in some different market. After conquering different markets, it eventually displaces the former market. Here we will talk about the hydrogen fuel Cell vehicle a disruptive innovation.How the introduction of hydrogen fuel cell vehicle will disrupt the market for oil industry, current internal combustion engine manufacturers and many others. At the same time we shall talk about how the companies are responding to this upcoming technology and how are they coping up with the new technology. Before going into the statistic part let us know in brief how the hydrogen fuel cell works, how it is different from internal combustion engine and what the benefits of hydrogen fuel cell are. 2 Hydrogen Fuel Cell a disruptive InnovationA fuel cell is an electrochemical device which converts chemical energy into electrical energy. It uses hydrogen and oxygen fro m air to produce electricity. Since no combustion is involved, it does not emit harmful gases and the efficiency of such device is much higher than an internal combustion engine. Apart from this it does not involve any moving part hence making it more silent and reliable source of energy. 2. 1 Working Hydrogen fuel cell consists of two catalysts anode and cathode, and an electrolyte. Hydrogen is fed to anode and oxygen from air is fed to cathode.At anode, catalyst causes hydrogen to split into positively charged ions protons and negatively charged ions electrons. The electrolyte, that is polymer electrolyte membrane allows only positive ion to flow through it. So the protons pass through membrane towards cathode and electrons pass through the external circuit towards the cathode. The flow of electron from the external circuit causes the current and eventually it goes to cathode and combines with positive ion and oxygen to emit water or water vapor. Hydrogen is is a fuel of great pot ential.Thought it is not an energy source, but it is an energy carrier. Hydrogen can be manufactured using renewable energy resources such as wind, solar etc. the research is still on on how to produce hydrogen on a larger scale. Following Figure show the working of a hydrogen Fuel Cell. Figure 1: Working of a Hydrogen Fuel Cell 2. 2 Benefits of a Hydrogen Fuel Cell Following are the benefits of a hydrogen fuel cell Zero green house gas Emissions: As water is the byproduct of the fuel cell, the emissions of harmful gases such as carbon dioxide, sulphur monoxide, etc is not there.Hence, it is a zero emission product. Though some amount of carbon dioxide is produced during manufacturing hydrogen, but research is on to manufacture hydrogen using renewable energy resources. Reduced Air Pollution: As there are no harmful gases emission involved in fuel cell, air pollution will be reduced considerably. Improved efficiency: Fuel cells are more efficient than internal combustion engine. A c onventional combustion egine generates efficiency up to 40% whereas a fuel cell generates efficiency more than 50% and has the potential to reach 85%.Other Benefits: the transportation will be oil independent, since there are no moving part, it is more reliable. 2. 3 Applications Fuel cells have wide range of applications. Following are the applications of a fuel cell: Transportation system: currently oil industry and internal combustion engine dominates the transportation system. But keeping environment and diminishing resources of fuel in mind it is predicted that by 2025 – 2030, hydrogen fuel cell will dominate the transportation sector. Power Generation: Fuel cell can also be used to generate power.It can be stationary power or a portable power. 2. 4 Challenges Following are the challenges that a fuel cell faces today: Cost: Cost of a fuel cell is a major concern right now. Due to expensive materials like platinum is used as a catalyst, the cost of fuel cell shoots up. bu t the research is on and it is most likely that the cost of a fuel cell will come down to $30 – $50/KW for transportation and $1500/KW for stationery power. Storage: Storage of hydrogen is again another concern especially for the transportation system since it has very low density in terms of volume.Research in this area is also going on to store the hydrogen fuel at high pressure. Infrastructure: Again to develop infrastructure for hydrogen is a big challenge cost wise. To develop infrastructure a collaboration will be required between automotive and energy companies. Other challenges include the safety issues to carry hydrogen, Durability of the fuel cell and public acceptance. But research I going on in all the areas and there will definitely be a solution to all the challenges. 3 Clayton Christensen’s Theory of disruptive technologyChristensen developed a framework that could be applied to any market at any point of time so long as the attributes to be measured qua lify for the characteristics presented in his framework. According to Christensen, companies fail because of the following reasons: Companies depend on customers and investors for resources: if the company doesn’t satisfy the customers or the shareholders, it will be difficult for the company to survive Small market cannot provide the growth needed by large companies: Large companies concentrate their efforts where the returns are high and often concentrate where the cost of sales is high.Technology supply exceeds the demand: Rapidly developing technology may often outpace the customer’s needs. When such thing happens opportunity for new entrants develop to enter into the market and come with a new product. Companies with best technology tend to improve the existing product often incrementally. And while focusing on the top end customers, a lower end market remains unserved until a new entrant comes with a potentially disruptive technology. And eventually new market be gins to grow. And once this new market starts gaining the footage, it causes the existing technology to become obsolete.Following graph will help us understand Christensens framework more clearly. Figure 2: Clayton Christensen’s Framework of Disruptive Technology The market is always divided into tiers the higher end market that represents the main customers who buy the product and the lower end market represents the customers who are least to buy the products. And performance is the main criteria by which customers buy the product. Sustaining innovation: As explained earlier, it could be incremental or radical that improves product performance for the main customers.The focus is mainly on improving the performance of the existing products and satisfying the main customers. Disruptive Innovation: It enters in the lower tier of the market with lower cost and attractive value for the lower market customers. Following are the charecteristics of a disruptive technology. * Offers low performance * Targets small market * It is tied with uncertainties * It introduces a new performance criteria in a new dimension * Generally non market leaders introduce such new products in a lower tier market with attributes to benefit lower end market.Moving back to the graph on Christensen’s framework for disruptive innovation, disruptive technology with an innovation enters at point ‘a’ with a lower rate for lower end market. At the same time market leaders are improvising their product using sustaining technologies and satisfying the mainline customers. And when the sustaining technology reaches point ‘b’, it is the peak time for the sustaining technology and after that the market gets saturated. This is the time when the market leaders need to innovate something new and create the new market. After point ‘b’, supply crosses demand.On the other hand, disruptive innovation enters at point ‘a’ satisfies the lower end customers and after improvising it reaches point ‘c’ the main stream customers. At point ‘c’ now, it is very late for sustaining technology to develop a new product for the main stream customers. Here it is very important to distinguish between different types of innovation. Incremental innovation occurs when small improvements are made to products/services. These, basically strengthens the market position of the firm and entrenches the industry. Radical Innovation occurs when major improvements are made to the products/services.These changes require new marketing channels and often put other firms out of competition and at the same time make old technologies obsolete. Transformational innovation occurs when the innovation is of such a nature that it destroys whole industry and changes the nature of the market. So if we have to summarize Christensen’s framework it would be, as the sustaining technology improves along the mainstream customer, disrupt ive technology enters at the lower end market, improvises along the existing dimensions and enters the main stream market.It eventually changes the basis of the competition from functionality to reliability and from reliability to convenience and eventually to price. Now, let’s apply this Christensen’s framework to today’s automotive world that is internal combustion engine as the sustaining technology and the hydrogen fuel cell as the disruptive technology. 3. 1 Comparison of Hydrogen Fuel Cell technology with the Christensen’s Framework of Disruptive Technology Let us compare the performance of fuel economy and green house gas emissions of internal combustion engine and hydrogen fuel cell vehicles.From the graph, we can agree that internal combustion engine is a sustaining technology incrementally improving its performance. Initially let’s say in 1980’s the fuel economy of a vehicle was around 4-6 km/l of gasoline and now it is around 12-1 5 km/l. green house gas emissions have also reduced by introducing hybrid option. But it is predicted that internal combustion engine will reach the point ‘b’ somewhere by 2015. That is it will reach the saturation level of innovation. Further development in internal combustion engine will result in more of supply than demand.This is the time when people will anticipate the change, and the change of disruptive technology in our case it is hydrogen fuel cell vehicle. Initially it keeps emerging and improves the performance in new dimension and tries to attract the main market stream. During the time emergence hydrogen fuel cell through experimentation seeks commercialization. And it is predicted by 2020 it will seek commercialization. Meanwhile, the internal combustion engine will steadily grow beyond the customer demand and will start losing its hold in the main market.In 2020, at point ‘c’, the market is ready to accept high performance vehicle, in terms o f fuel economy. And beyond this point, the hydrogen fuel cell vehicle keeps on improving rapidly. This will eventually bring the phase out of an internal combustion engine and forcing it out of the market by 2030 – 2040 completely and hydrogen fuel cell vehicle becoming the base technology. Beyond this it will improve incrementally until the new disruptive comes and phase out the hydrogen fuel cell technology. Green House Gas EmissionGlobal warming is one of the prime reasons fro shifting the paradigm from internal combustion engine to hydrogen fuel cell vehicle. Following graph shows the global warming potential of gasoline, flex fuels and hydrogen fuel cell in various stages from manufacturing to the end of life of a vehicle. Figure 3: Global Warming potential comparison of 3 different types of Engine. It is clear from the graph global warming potential that is emission of harmful gases from a fuel cell vehicle is less than a gasoline and the flex fuel vehicle.From the grap h, it is seen that only while production for the fuel of hydrogen fuel cell vehicle, the emission of harmful gases is high, but it is very less compared to the gasoline and flex fuels. Apart from that, research is also going on for producing hydrogen using renewably resources such as wind, solar and nuclear. 3. 2 Conclusion It is evident that hydrogen fuel cell vehicle is a disruptive technology and will cause a phase out for the internal combustion engine. But when we compare it to the Christensen’s framework, it slightly contradicts.Hydrogen fuel cell vehicles in literal sense are not targeting the lower market initially. The cost of the product is not low. But all other parameters remain the same. It is focusing on the new dimension and at the same time it is threat to the internal combustion engine world. Apart from this slight difference, hydrogen fuel cell vehicle is definitely a disruptive innovation, and will definitely lead to transformation of technologies and will change the basis of competition from fuel economy to green house gas reductions with the environmental pressure. 4 Current ScenarioIf we talk about hydrogen fuel cell in today’s world, it is still an emerging technology which looks solid and promising in terms of fuel economy and reduction in green house gas emission. Research in this particular area is going on all around the world since the global warming level is increasing and the environmental pressure is acting on all the governments. In this scenario, the companies who are already into research in this area will survive and the companies that are still not doing any kind of research or innovation and still trying to improve the sustaining technology might just phase out of the competition.Further we will see cases and findings of various companies in this area including oil industry, automotive industry and the industries related to this huge sector of industries. 4. 1 Oil Industry: Today, the energy sector is run majo rly by oil industry. And majorly oil after refining is consumed by transportation industry. Around 90%of the oil is consumed by the transportation industry, and out of that around 50% of the industry consumes gasoline and the rest is diesel, LPG, Naphtha etc. Major players in this oil industry today are Saudi aramco, shell, BP, Exxon Mobil and chevron.Saudi Aramco (Saudi Arabia)is the major producer of the oil today and has the maximum exports all over the world, then it is followed by other companies. Apart from green house gas emissions and environmental pressure, the increasing rate of oil so frequently gives us an idea that even the oil reserves are diminishing day by day. Now increasing research and development in this area poses threat on oil industry as well. Even the oil industries have started doing research in this area. Basically these companies are doing research on how to produce hydrogen using the existing technologies in large scale.Following are some of the findings of the oil companies in this area. 4. 1. 1 Saudi Aramco (Source: http://www. keei. re. kr/keei/download/seminar/101117/II101118_b02. pdf, www. saudiaramco. com, www. mbifoundation. com/media/18961/final%20bpr. pdf) Following are some of the conclusion made by research and development department of Saudi Aramco. : * H2 production using existing petroleum infrastructure will be a potential economical option compared to other technologies. * Need to integrate the carbon capture and storage (CCS) technologies along with hydrogen production for efficient carbon management. Alternate hydrogen production technologies, such as electrolysis and renewable sources, have significant technical and economical challenges (energy intensive and high capital). * Significant progress made in the demonstration of liquid hydrocarbons to hydrogen. Apart from this, Saudi Aramco has also filed a patent in US office for the naphtha based fuels which can also be used for vehicular purpose. 4. 1. 2 Shell ( So urce: http://www. shell. com/home/content/environment_society/environment/climate_change/biofuels_alternative_energies_transport/hydrogen/, http://articles. atimes. com and http://www. thelivingmoon. com/41pegasus/02files/Alternate_Fuel_Shell_Oil_Hydrogen. html) Shell had started its research on this topic since 1999 and had anticipated the change in the world of automotive industry and power sector long back. Shell has joined hands with the leading car making companies and power companies and working on this project. Shell is already working in collaboration with Siemens, Toyota, Daimler Chrysler and has reached a long way in this area. It has also opened various hydrogen fuel stations in United States of America, Europe and Asia.And it is offering free fillips at various fueling station just to promote the upcoming technology. Following picture is one of the fueling station in United States of America where hydrogen fueling is provided. Figure 4: Hydrogen fuel Station by Shell 4. 1. 3 BP: (Source: http://www. bp. com) Like Shell, BP is also one of the world's largest energy enterprises, BP has been extensively involved in hydrogen energy demonstration projects around the world to explore feasible solutions to hydrogen economy.In China, BP and PRC Ministry of Science ; Technology have been co-working on a hydrogen energy project to set up China's first hydrogen fueling station in Beijing. As one of the world's largest energy enterprises, BP has been extensively involved in hydrogen energy demonstration projects around the world to explore feasible solutions to hydrogen economy. In China, BP and PRC Ministry of Science ; Technology have been co-working on a hydrogen energy project to set up China's first hydrogen fueling station in Beijing.Apart from this BP has joined hands with the leading companies like Daimler Chrysler, Ford Motor Company, General Motors, Solarex and working on various projects like fuel efficiency, CO2 management, Hydrogen Fuel Cell. Apar t from the companies all these companies also join their hands with various Universities who help the in doing their research. 4. 1. 4 Exxon Mobil: (Source: http://www. exxonmobil. com, http://www. dutchdailynews. com/air-products-and-exxonmobil-start-up-new-world-scale-hydrogen-production-plant-in-rotterdam/) Exxon Mobil again is not left ehind in the research of hydrogen fuel cell and the production of hydrogen on a large scale. Following are some of the research that Exxon Mobil is working on * It is conducting breakthrough research on Hydrogen Production Technology * It is also trying to improve its existing technology at the same time by continuously improving the efficiency of internal combustion engine and reducing the emission of harmful gases. * On 10th Feb 2012 Air products and Exxon Mobil started a large scale Hydrogen Production Plant in Rotterdam. Apart from this, ExxonMobil is also developing an innovative on-board hydrogen-powered fuel cell system that converts conven tional hydrocarbon fuels such as gasoline or diesel into hydrogen for a fuel cell right under a vehicle’s hood. Apart from this there are various other small industries that are into this hydrogen fuel cell research for example Reliance from India is also doing its bit in this area. 4. 2 Automotive Industry We have seen the response and reaction of oil Industry so far, Now let us see the response of automotive industry worldwide.We shall go country wise in this case to know the response of various industries and development in various countries in this specific area. 4. 2. 1 United States Of America: United States of America is spending millions of dollars every year in the research of hydrogen fuel Cell. They have demonstrations with many private companies. Daimler Chrysler Company developed its first fuel cell truck in 2000. The main aim of USA is to make Fuel Cell Vehicle available at an affordable cost. General Motors: General motors one of the oldest companies of USA is planning to get 1000 fuel cell vehicles on road by 2013-2015.Ford Motor Company: Ford is also planning to launch its commercial hydrogen fuel cell vehicle in 2015. 4. 2. 2 Japan: One can say Japan is the very first to start the research in this area and it is since 1981. It was in Japan in Tokyo electric Company, Toshiba and an American based company fuel cell company manufactured and installed an 11 MW power plant (Source: www. platinummetalsreview. com/pdf/pmr-v33-i1-010-012. pdf). Apart from this the major Japanese automotive companies look promising in terms of Hydrogen uel cell vehicle compared to other companies in the world. Toyota: Toyota has promised in its recent Autocar show that it will start selling the hydrogen fuel cell vehicle in USA specifically in California, since by 2015 it is predicted that there will be 68 hydrogen fueling stations in California. (Source: http://content. usatoday. com/communities/driveon/post/2012/08/toyota-to-start-selling-hydrogen-fuel-cell-c ar-in-2015/1#. UHFOcE3Mj38) Honda: CEO Takanobu Ito just announced that Honda will launch a new fuel-cell electric car in the U.S. and Europe starting in 2015. It will â€Å"showcase further technological advancement and significant cost reduction. † Honda has already been letting consumers test its fleet of FCX Clarity hydrogen fuel-cell cars for a couple of years (Source: http://www. firstcoastnews. com/news/article/276774/11/Automakers-take-fresh-look-at-hydrogen-fuel-cells) Nissan: Nissan has also announced its interest in hydrogen fuel cell vehicle and has declared that it is ready to mass produce hydrogen fuel cell cars by 2015 (Source: http://www. irstcoastnews. com/news/article/276774/11/Automakers-take-fresh-look-at-hydrogen-fuel-cells) 4. 2. 3 Europe: Europe is not left behind in this research. All the major brands BMW, Mercedes Volkswagen etc have shown interest in hydrogen fuel cell, but at the same time have said hydrogen fuel cell will take at least 10 more year s to commercialize. 4. 2. 4 India: India is the place where we can say Christensen’s framework is applicable perfectly. Here the auto rickshaw for the lower end market has been made using hydrogen fuel cell. t was displayed at pragati maidan in January 2012 and is expected to hit the road by 2015. Source: http://www. nytimes. com/2012/10/02/business/energy-environment/hydrogen-fuels-autorickshaws-and-dreams-of-cleaner-air. html? pagewanted=all&_r=0) Apart from this biggies like TATA Motors and Mahindra and Mahindra have shown interest in this area. Tata Motors have manufactured the bus based on hydrogen fuel cell technology known as starbus. Following figure shows the Auto Rickshaw and the Hydrogen fuel cell BusFigure 5: Hydrogen fuel cell vehicles in india Following are some of the comments from various high profile executives from various companies: * Executives from Ford, General Motors, Chrysler and Volkswagen see fuel-cell vehicles as being further out, and most have not said when they'll have vehicles on the market. * â€Å"We don't see it as early as Toyota does,† said Oliver Schmidt, general manager of engineering with the VW Group. â€Å"We see it in the 2020 time frame. * Joe Bakaj, Ford vice president of powertrain engineering, said, â€Å"The question is when (will) fuel-cell vehicles become affordable to customers,† specifically when the fuel-cell stack competes with the battery pack on cost. * â€Å"Within 10 years, I think they will be as affordable as full battery vehicles, and the fuel cell will have a big advantage in range,† Bakaj said. â€Å"We think it will happen in the next 10 years. † * Gary Smyth, GM executive director working on global research and development, said he sees little commitment in the U. S. to the necessary infrastructure by 2015. Source: http://content. usatoday. com/communities/driveon/post/2012/08/toyota-to-start-selling-hydrogen-fuel-cell-car-in-2015/1#. UHFOcE3Mj38) Part from all this various other countries and companies have shown immense amount of interest in hydrogen fuel cell Recently Korea and Korean company Hyundai has also announced an hydrogen fuel cell vehicle launch by 2015. So the major companies all around the world and the allied companies are responding really well to the upcoming technology of hydrogen fuel cell and all of them are doing their bit to save the environment. 5 Conclusion:It is very clear from the above assignment that hydrogen fuel cell is the future of the world. It is definitely one of the biggest disruptive technologies of all time. Biggest because, once the technology is commercialized, many big players all around the world will have to change their base of technology. Technology innovation and upcoming technologies are posing threat on the current industry and are eventually forcing companies out of business. New technologies are exerting power to shape the market and change the basis of the competition. Hence, it is import ant for the companies to continuously assess the technologies and capabilities. Disruptive Innovation In order to remain afloat in this ever changing market, companies must have a sound proof strategy. According to Thompson, Peteraf, Gamble and Strickland, a company’s strategy is its action plan for outperforming its competitors and achieving superior profitability. (Thompson, Peteraf, Gamble and Strickland p. 4) One well known strategy or theory of many companies is a term called disruptive innovation. Disruptive innovation was coined by Clayton Christensen.It explains the process of a product or service preliminary application initiating from the bottom of the market that replaces an already established product or service. This theory has created a significant impact on management practices in all types of industries. It has created debates of how â€Å"executives and managers are in need of research that will elevate the pursuit of successful innovations from a gut-level, intuition-driven art to something more closely resembling a science based on repeatable processes with predictable results.† (Raynor, p. 27)In doing so, it has also created a sense of conflict between entrants, incumbents and disrupters to see which organization will remain the top supplier. Innovation is always on the top mind for all CEOs. Understanding how to identify disruptive innovations before they become mainstream and take advantage of the ‘†white space† is a skill to cultivate. Disruptive Innovation patterns are always changing and sometimes are very difficult to see because of it’s rapid growth. Similarities; Raynor:Disruption theory can be used to shape existing innovation ideas in ways consistent with the theory's prescriptions. As of now the disruption theory of innovation is the only one with evidence to support the assertion that it can improve predictive accuracy. 1. Used to shape existing innovation ideas in ways consistent with the theory’s prescriptions 2. a particular perspective on innovation – is based on its superi or explanatory and predictive power 3. entrants attacked successful incumbents by adopting the incumbents' models and technological solutions – what he called a â€Å"sustaining† strategy-they tended to fail.However, driven by their desire to grow, the upstart entrants were strongly motivated to improve their initial offerings in ways that would allow them to compete effectively for the larger, more lucrative mainstream markets. This was the entrants' â€Å"upmarket march,† and entrants that marched upmarket successfully eventually captured the customers that had been the incumbents' mainstay. Differences: Whatever ambiguities might remain in making the relevant categorizations (incumbent vs. entrant; sustaining vs. disruptive) the data reveal that overall; disruption theory makes better prediction possible.In contrast, entrants tended to succeed by combining a business model tailored to the needs of a relatively less attractive market – the entrants' foo thold – with an ability to improve their original solutions in ways that allowed them to provide superior performance that incumbents were unable to replicate – the upmarket march In contrast, I make a more limited and modest claim: disruption theory can deliver statistically significant and practically material improvement in the ability to innovate successfully.Christensen and Overdorf 1. ? Difference – Managers lack thinking about their organizations capapbilities as they think about individual peoples capabilities. Pg 68 2. Our research suggests that three factors affect what an organization can and cannot do; its resources, its processes and its values pg 68 3. Differences;or similarities . As companies become large, they lose the ability to enter small emerging markets. Cause by an evolution of values. Pg 70 4.Disruptive innovation can create an entirely new market through the introduction of a new kind of product or service, one that is actually worst. Pg 72 5. Differences: Sustaining innovation are nearly always developed and introduced by established industry leaders. But do not cope well with disruptive innovations. Pg 72 6. Similarity: DI occurs so intermittently that no company has a routine process for handling them. Inconsistent with the company’s value. Disruptive Innovation (1) Catalytic innovation involves the process wherein companies and industries take actions within a particular society to create and enhance social changes on certain issues. It is said that â€Å"catalytic innovations can surpass the status quo by providing good enough solutions to inadequately address social problems. † (Christensen et. al. , 2006, p. 96) (2) One important difference and distinction between disruptive innovation and catalytic innovation is its scope.It has been mentioned that catalytic innovation mainly focuses on the issue of creating societal change. On the other hand, disruptive innovation caters to the creation of alternatives of goods and services. The two are similar due to its efforts to create changes in the status quo and market. â€Å"Catalytic innovations are a subset of disruptive innovations, distinguished by their primary focus on social change, often on a national scale. † (Christensen et. al. , 2006, p. 96)(3)There had been efforts in the health care sector to improve the services they give to ordinary people. This has been manifested by the creation of cutting-edge care facilities, insurance and walk-in clinics that offer cheaper and convenient opportunities for sick individuals. The success has been described by the article in the overall satisfaction gained by such walk-in clinics and the other two facets. One vital component of such success is the degree of patronage by the locals on such ideas.Patronage is one clear indicator of preference and satisfaction compared to the original practices. (4) Microlending involves the process of giving capital to small and medium enterprises to start up their own businesses. Since the creation of microlending facilities, it has spurred growth and development among members of the middle strata of several societies. â€Å"In turn, microlending helps sustain borrowers who are paying back loans and creates an economic environment that attracts other lenders looking to start a new business.† (Christensen et. al. , 2006, p. 96)Such benefits have paved the way for the development of social and economic status. (5) Microlending had a positive impact on KickStart because the initiative provided means and capital for small African farmers to acquire technological innovation and create better lives. By providing capital to these farmers, KickStart products somehow alleviated the way labor and work is done in the farms.In addition, due to microlending mechanisms, KickStart was able to expand its market and continued to target small scale farmers with the pursuit of improving their harvests. (6) Analyzing the article, it can be argued that catalytic innovations fall under the bottom of the technology S-curve due to its capability to create changes in society and alter the status quo. Seeing this, it can be surmised they also have the possibility and potential of ‘segment-zero’ products due to its relative ease and capability to access a mark et not envisioned by the normal competitors. References Christensen, C.M., Bauman, H., Ruggles, R. and Sadtler, T.M. (December 2006) Disruptive Innovation for Social Change in Harvard Business Review. pp. 94 – 101. Disruptive Innovation 1 Introduction This assignment provides the study on Disruptive Innovation using Clayton Christensen’s framework. Apart from this, this assignment also tells how the companies should react to the upcoming technologies and what should be the course of action for the same. 1. 1 Innovation There is no specific definition for innovation as such. But, according to me, innovation is creating something new or changing the old to achieve the competitive advantage and meet the increasing customer demands.This is achieved either by introducing new products, new ideas, and processes or just by changing the design of the product or the processes as per the customer demands. Innovating and creating new products and services has become very important topic of concern for all the organizations in today’s rapidly changing world. If you are not innovative, you may never know when your products become obsolete. 1. 2 Types of Innovation There are three main types of Innovations: Sustainin g innovation: This type of innovation needs to be developed to ensure that the customers are satisfied with the products and services and to stay in the game.For example upgrading the processor from dual core to Intel core i3 to i5 and enhancing the performance of computers. Breakthrough Innovations: These innovations upgrade the level of existing category of products or services. For example I phone was a breakthrough innovation in the world of mobile market. It changed the perspective of the customers and eventually other companies started following the trend. Disruptive Innovation: In this type of innovation a new product or a sevice is introduced that creates a new market or massively alters an old one so that old players cannot compete.They are called disruptive because they disrupt the current behavior of the market. For example Introduction of computers was a disruptive innovation for companies who manufactured typewriters. According to Clayton Christensen Disruptive innovati on offers lower performance initially as per the current market demand. But, at the same time it provides some new attributes which prosper in some different market. After conquering different markets, it eventually displaces the former market. Here we will talk about the hydrogen fuel Cell vehicle a disruptive innovation.How the introduction of hydrogen fuel cell vehicle will disrupt the market for oil industry, current internal combustion engine manufacturers and many others. At the same time we shall talk about how the companies are responding to this upcoming technology and how are they coping up with the new technology. Before going into the statistic part let us know in brief how the hydrogen fuel cell works, how it is different from internal combustion engine and what the benefits of hydrogen fuel cell are. 2 Hydrogen Fuel Cell a disruptive InnovationA fuel cell is an electrochemical device which converts chemical energy into electrical energy. It uses hydrogen and oxygen fro m air to produce electricity. Since no combustion is involved, it does not emit harmful gases and the efficiency of such device is much higher than an internal combustion engine. Apart from this it does not involve any moving part hence making it more silent and reliable source of energy. 2. 1 Working Hydrogen fuel cell consists of two catalysts anode and cathode, and an electrolyte. Hydrogen is fed to anode and oxygen from air is fed to cathode.At anode, catalyst causes hydrogen to split into positively charged ions protons and negatively charged ions electrons. The electrolyte, that is polymer electrolyte membrane allows only positive ion to flow through it. So the protons pass through membrane towards cathode and electrons pass through the external circuit towards the cathode. The flow of electron from the external circuit causes the current and eventually it goes to cathode and combines with positive ion and oxygen to emit water or water vapor. Hydrogen is is a fuel of great pot ential.Thought it is not an energy source, but it is an energy carrier. Hydrogen can be manufactured using renewable energy resources such as wind, solar etc. the research is still on on how to produce hydrogen on a larger scale. Following Figure show the working of a hydrogen Fuel Cell. Figure 1: Working of a Hydrogen Fuel Cell 2. 2 Benefits of a Hydrogen Fuel Cell Following are the benefits of a hydrogen fuel cell Zero green house gas Emissions: As water is the byproduct of the fuel cell, the emissions of harmful gases such as carbon dioxide, sulphur monoxide, etc is not there.Hence, it is a zero emission product. Though some amount of carbon dioxide is produced during manufacturing hydrogen, but research is on to manufacture hydrogen using renewable energy resources. Reduced Air Pollution: As there are no harmful gases emission involved in fuel cell, air pollution will be reduced considerably. Improved efficiency: Fuel cells are more efficient than internal combustion engine. A c onventional combustion egine generates efficiency up to 40% whereas a fuel cell generates efficiency more than 50% and has the potential to reach 85%.Other Benefits: the transportation will be oil independent, since there are no moving part, it is more reliable. 2. 3 Applications Fuel cells have wide range of applications. Following are the applications of a fuel cell: Transportation system: currently oil industry and internal combustion engine dominates the transportation system. But keeping environment and diminishing resources of fuel in mind it is predicted that by 2025 – 2030, hydrogen fuel cell will dominate the transportation sector. Power Generation: Fuel cell can also be used to generate power.It can be stationary power or a portable power. 2. 4 Challenges Following are the challenges that a fuel cell faces today: Cost: Cost of a fuel cell is a major concern right now. Due to expensive materials like platinum is used as a catalyst, the cost of fuel cell shoots up. bu t the research is on and it is most likely that the cost of a fuel cell will come down to $30 – $50/KW for transportation and $1500/KW for stationery power. Storage: Storage of hydrogen is again another concern especially for the transportation system since it has very low density in terms of volume.Research in this area is also going on to store the hydrogen fuel at high pressure. Infrastructure: Again to develop infrastructure for hydrogen is a big challenge cost wise. To develop infrastructure a collaboration will be required between automotive and energy companies. Other challenges include the safety issues to carry hydrogen, Durability of the fuel cell and public acceptance. But research I going on in all the areas and there will definitely be a solution to all the challenges. 3 Clayton Christensen’s Theory of disruptive technologyChristensen developed a framework that could be applied to any market at any point of time so long as the attributes to be measured qua lify for the characteristics presented in his framework. According to Christensen, companies fail because of the following reasons: Companies depend on customers and investors for resources: if the company doesn’t satisfy the customers or the shareholders, it will be difficult for the company to survive Small market cannot provide the growth needed by large companies: Large companies concentrate their efforts where the returns are high and often concentrate where the cost of sales is high.Technology supply exceeds the demand: Rapidly developing technology may often outpace the customer’s needs. When such thing happens opportunity for new entrants develop to enter into the market and come with a new product. Companies with best technology tend to improve the existing product often incrementally. And while focusing on the top end customers, a lower end market remains unserved until a new entrant comes with a potentially disruptive technology. And eventually new market be gins to grow. And once this new market starts gaining the footage, it causes the existing technology to become obsolete.Following graph will help us understand Christensens framework more clearly. Figure 2: Clayton Christensen’s Framework of Disruptive Technology The market is always divided into tiers the higher end market that represents the main customers who buy the product and the lower end market represents the customers who are least to buy the products. And performance is the main criteria by which customers buy the product. Sustaining innovation: As explained earlier, it could be incremental or radical that improves product performance for the main customers.The focus is mainly on improving the performance of the existing products and satisfying the main customers. Disruptive Innovation: It enters in the lower tier of the market with lower cost and attractive value for the lower market customers. Following are the charecteristics of a disruptive technology. * Offers low performance * Targets small market * It is tied with uncertainties * It introduces a new performance criteria in a new dimension * Generally non market leaders introduce such new products in a lower tier market with attributes to benefit lower end market.Moving back to the graph on Christensen’s framework for disruptive innovation, disruptive technology with an innovation enters at point ‘a’ with a lower rate for lower end market. At the same time market leaders are improvising their product using sustaining technologies and satisfying the mainline customers. And when the sustaining technology reaches point ‘b’, it is the peak time for the sustaining technology and after that the market gets saturated. This is the time when the market leaders need to innovate something new and create the new market. After point ‘b’, supply crosses demand.On the other hand, disruptive innovation enters at point ‘a’ satisfies the lower end customers and after improvising it reaches point ‘c’ the main stream customers. At point ‘c’ now, it is very late for sustaining technology to develop a new product for the main stream customers. Here it is very important to distinguish between different types of innovation. Incremental innovation occurs when small improvements are made to products/services. These, basically strengthens the market position of the firm and entrenches the industry. Radical Innovation occurs when major improvements are made to the products/services.These changes require new marketing channels and often put other firms out of competition and at the same time make old technologies obsolete. Transformational innovation occurs when the innovation is of such a nature that it destroys whole industry and changes the nature of the market. So if we have to summarize Christensen’s framework it would be, as the sustaining technology improves along the mainstream customer, disrupt ive technology enters at the lower end market, improvises along the existing dimensions and enters the main stream market.It eventually changes the basis of the competition from functionality to reliability and from reliability to convenience and eventually to price. Now, let’s apply this Christensen’s framework to today’s automotive world that is internal combustion engine as the sustaining technology and the hydrogen fuel cell as the disruptive technology. 3. 1 Comparison of Hydrogen Fuel Cell technology with the Christensen’s Framework of Disruptive Technology Let us compare the performance of fuel economy and green house gas emissions of internal combustion engine and hydrogen fuel cell vehicles.From the graph, we can agree that internal combustion engine is a sustaining technology incrementally improving its performance. Initially let’s say in 1980’s the fuel economy of a vehicle was around 4-6 km/l of gasoline and now it is around 12-1 5 km/l. green house gas emissions have also reduced by introducing hybrid option. But it is predicted that internal combustion engine will reach the point ‘b’ somewhere by 2015. That is it will reach the saturation level of innovation. Further development in internal combustion engine will result in more of supply than demand.This is the time when people will anticipate the change, and the change of disruptive technology in our case it is hydrogen fuel cell vehicle. Initially it keeps emerging and improves the performance in new dimension and tries to attract the main market stream. During the time emergence hydrogen fuel cell through experimentation seeks commercialization. And it is predicted by 2020 it will seek commercialization. Meanwhile, the internal combustion engine will steadily grow beyond the customer demand and will start losing its hold in the main market.In 2020, at point ‘c’, the market is ready to accept high performance vehicle, in terms o f fuel economy. And beyond this point, the hydrogen fuel cell vehicle keeps on improving rapidly. This will eventually bring the phase out of an internal combustion engine and forcing it out of the market by 2030 – 2040 completely and hydrogen fuel cell vehicle becoming the base technology. Beyond this it will improve incrementally until the new disruptive comes and phase out the hydrogen fuel cell technology. Green House Gas EmissionGlobal warming is one of the prime reasons fro shifting the paradigm from internal combustion engine to hydrogen fuel cell vehicle. Following graph shows the global warming potential of gasoline, flex fuels and hydrogen fuel cell in various stages from manufacturing to the end of life of a vehicle. Figure 3: Global Warming potential comparison of 3 different types of Engine. It is clear from the graph global warming potential that is emission of harmful gases from a fuel cell vehicle is less than a gasoline and the flex fuel vehicle.From the grap h, it is seen that only while production for the fuel of hydrogen fuel cell vehicle, the emission of harmful gases is high, but it is very less compared to the gasoline and flex fuels. Apart from that, research is also going on for producing hydrogen using renewably resources such as wind, solar and nuclear. 3. 2 Conclusion It is evident that hydrogen fuel cell vehicle is a disruptive technology and will cause a phase out for the internal combustion engine. But when we compare it to the Christensen’s framework, it slightly contradicts.Hydrogen fuel cell vehicles in literal sense are not targeting the lower market initially. The cost of the product is not low. But all other parameters remain the same. It is focusing on the new dimension and at the same time it is threat to the internal combustion engine world. Apart from this slight difference, hydrogen fuel cell vehicle is definitely a disruptive innovation, and will definitely lead to transformation of technologies and will change the basis of competition from fuel economy to green house gas reductions with the environmental pressure. 4 Current ScenarioIf we talk about hydrogen fuel cell in today’s world, it is still an emerging technology which looks solid and promising in terms of fuel economy and reduction in green house gas emission. Research in this particular area is going on all around the world since the global warming level is increasing and the environmental pressure is acting on all the governments. In this scenario, the companies who are already into research in this area will survive and the companies that are still not doing any kind of research or innovation and still trying to improve the sustaining technology might just phase out of the competition.Further we will see cases and findings of various companies in this area including oil industry, automotive industry and the industries related to this huge sector of industries. 4. 1 Oil Industry: Today, the energy sector is run majo rly by oil industry. And majorly oil after refining is consumed by transportation industry. Around 90%of the oil is consumed by the transportation industry, and out of that around 50% of the industry consumes gasoline and the rest is diesel, LPG, Naphtha etc. Major players in this oil industry today are Saudi aramco, shell, BP, Exxon Mobil and chevron.Saudi Aramco (Saudi Arabia)is the major producer of the oil today and has the maximum exports all over the world, then it is followed by other companies. Apart from green house gas emissions and environmental pressure, the increasing rate of oil so frequently gives us an idea that even the oil reserves are diminishing day by day. Now increasing research and development in this area poses threat on oil industry as well. Even the oil industries have started doing research in this area. Basically these companies are doing research on how to produce hydrogen using the existing technologies in large scale.Following are some of the findings of the oil companies in this area. 4. 1. 1 Saudi Aramco (Source: http://www. keei. re. kr/keei/download/seminar/101117/II101118_b02. pdf, www. saudiaramco. com, www. mbifoundation. com/media/18961/final%20bpr. pdf) Following are some of the conclusion made by research and development department of Saudi Aramco. : * H2 production using existing petroleum infrastructure will be a potential economical option compared to other technologies. * Need to integrate the carbon capture and storage (CCS) technologies along with hydrogen production for efficient carbon management. Alternate hydrogen production technologies, such as electrolysis and renewable sources, have significant technical and economical challenges (energy intensive and high capital). * Significant progress made in the demonstration of liquid hydrocarbons to hydrogen. Apart from this, Saudi Aramco has also filed a patent in US office for the naphtha based fuels which can also be used for vehicular purpose. 4. 1. 2 Shell ( So urce: http://www. shell. com/home/content/environment_society/environment/climate_change/biofuels_alternative_energies_transport/hydrogen/, http://articles. atimes. com and http://www. thelivingmoon. com/41pegasus/02files/Alternate_Fuel_Shell_Oil_Hydrogen. html) Shell had started its research on this topic since 1999 and had anticipated the change in the world of automotive industry and power sector long back. Shell has joined hands with the leading car making companies and power companies and working on this project. Shell is already working in collaboration with Siemens, Toyota, Daimler Chrysler and has reached a long way in this area. It has also opened various hydrogen fuel stations in United States of America, Europe and Asia.And it is offering free fillips at various fueling station just to promote the upcoming technology. Following picture is one of the fueling station in United States of America where hydrogen fueling is provided. Figure 4: Hydrogen fuel Station by Shell 4. 1. 3 BP: (Source: http://www. bp. com) Like Shell, BP is also one of the world's largest energy enterprises, BP has been extensively involved in hydrogen energy demonstration projects around the world to explore feasible solutions to hydrogen economy.In China, BP and PRC Ministry of Science ; Technology have been co-working on a hydrogen energy project to set up China's first hydrogen fueling station in Beijing. As one of the world's largest energy enterprises, BP has been extensively involved in hydrogen energy demonstration projects around the world to explore feasible solutions to hydrogen economy. In China, BP and PRC Ministry of Science ; Technology have been co-working on a hydrogen energy project to set up China's first hydrogen fueling station in Beijing.Apart from this BP has joined hands with the leading companies like Daimler Chrysler, Ford Motor Company, General Motors, Solarex and working on various projects like fuel efficiency, CO2 management, Hydrogen Fuel Cell. Apar t from the companies all these companies also join their hands with various Universities who help the in doing their research. 4. 1. 4 Exxon Mobil: (Source: http://www. exxonmobil. com, http://www. dutchdailynews. com/air-products-and-exxonmobil-start-up-new-world-scale-hydrogen-production-plant-in-rotterdam/) Exxon Mobil again is not left ehind in the research of hydrogen fuel cell and the production of hydrogen on a large scale. Following are some of the research that Exxon Mobil is working on * It is conducting breakthrough research on Hydrogen Production Technology * It is also trying to improve its existing technology at the same time by continuously improving the efficiency of internal combustion engine and reducing the emission of harmful gases. * On 10th Feb 2012 Air products and Exxon Mobil started a large scale Hydrogen Production Plant in Rotterdam. Apart from this, ExxonMobil is also developing an innovative on-board hydrogen-powered fuel cell system that converts conven tional hydrocarbon fuels such as gasoline or diesel into hydrogen for a fuel cell right under a vehicle’s hood. Apart from this there are various other small industries that are into this hydrogen fuel cell research for example Reliance from India is also doing its bit in this area. 4. 2 Automotive Industry We have seen the response and reaction of oil Industry so far, Now let us see the response of automotive industry worldwide.We shall go country wise in this case to know the response of various industries and development in various countries in this specific area. 4. 2. 1 United States Of America: United States of America is spending millions of dollars every year in the research of hydrogen fuel Cell. They have demonstrations with many private companies. Daimler Chrysler Company developed its first fuel cell truck in 2000. The main aim of USA is to make Fuel Cell Vehicle available at an affordable cost. General Motors: General motors one of the oldest companies of USA is planning to get 1000 fuel cell vehicles on road by 2013-2015.Ford Motor Company: Ford is also planning to launch its commercial hydrogen fuel cell vehicle in 2015. 4. 2. 2 Japan: One can say Japan is the very first to start the research in this area and it is since 1981. It was in Japan in Tokyo electric Company, Toshiba and an American based company fuel cell company manufactured and installed an 11 MW power plant (Source: www. platinummetalsreview. com/pdf/pmr-v33-i1-010-012. pdf). Apart from this the major Japanese automotive companies look promising in terms of Hydrogen uel cell vehicle compared to other companies in the world. Toyota: Toyota has promised in its recent Autocar show that it will start selling the hydrogen fuel cell vehicle in USA specifically in California, since by 2015 it is predicted that there will be 68 hydrogen fueling stations in California. (Source: http://content. usatoday. com/communities/driveon/post/2012/08/toyota-to-start-selling-hydrogen-fuel-cell-c ar-in-2015/1#. UHFOcE3Mj38) Honda: CEO Takanobu Ito just announced that Honda will launch a new fuel-cell electric car in the U.S. and Europe starting in 2015. It will â€Å"showcase further technological advancement and significant cost reduction. † Honda has already been letting consumers test its fleet of FCX Clarity hydrogen fuel-cell cars for a couple of years (Source: http://www. firstcoastnews. com/news/article/276774/11/Automakers-take-fresh-look-at-hydrogen-fuel-cells) Nissan: Nissan has also announced its interest in hydrogen fuel cell vehicle and has declared that it is ready to mass produce hydrogen fuel cell cars by 2015 (Source: http://www. irstcoastnews. com/news/article/276774/11/Automakers-take-fresh-look-at-hydrogen-fuel-cells) 4. 2. 3 Europe: Europe is not left behind in this research. All the major brands BMW, Mercedes Volkswagen etc have shown interest in hydrogen fuel cell, but at the same time have said hydrogen fuel cell will take at least 10 more year s to commercialize. 4. 2. 4 India: India is the place where we can say Christensen’s framework is applicable perfectly. Here the auto rickshaw for the lower end market has been made using hydrogen fuel cell. t was displayed at pragati maidan in January 2012 and is expected to hit the road by 2015. Source: http://www. nytimes. com/2012/10/02/business/energy-environment/hydrogen-fuels-autorickshaws-and-dreams-of-cleaner-air. html? pagewanted=all&_r=0) Apart from this biggies like TATA Motors and Mahindra and Mahindra have shown interest in this area. Tata Motors have manufactured the bus based on hydrogen fuel cell technology known as starbus. Following figure shows the Auto Rickshaw and the Hydrogen fuel cell BusFigure 5: Hydrogen fuel cell vehicles in india Following are some of the comments from various high profile executives from various companies: * Executives from Ford, General Motors, Chrysler and Volkswagen see fuel-cell vehicles as being further out, and most have not said when they'll have vehicles on the market. * â€Å"We don't see it as early as Toyota does,† said Oliver Schmidt, general manager of engineering with the VW Group. â€Å"We see it in the 2020 time frame. * Joe Bakaj, Ford vice president of powertrain engineering, said, â€Å"The question is when (will) fuel-cell vehicles become affordable to customers,† specifically when the fuel-cell stack competes with the battery pack on cost. * â€Å"Within 10 years, I think they will be as affordable as full battery vehicles, and the fuel cell will have a big advantage in range,† Bakaj said. â€Å"We think it will happen in the next 10 years. † * Gary Smyth, GM executive director working on global research and development, said he sees little commitment in the U. S. to the necessary infrastructure by 2015. Source: http://content. usatoday. com/communities/driveon/post/2012/08/toyota-to-start-selling-hydrogen-fuel-cell-car-in-2015/1#. UHFOcE3Mj38) Part from all this various other countries and companies have shown immense amount of interest in hydrogen fuel cell Recently Korea and Korean company Hyundai has also announced an hydrogen fuel cell vehicle launch by 2015. So the major companies all around the world and the allied companies are responding really well to the upcoming technology of hydrogen fuel cell and all of them are doing their bit to save the environment. 5 Conclusion:It is very clear from the above assignment that hydrogen fuel cell is the future of the world. It is definitely one of the biggest disruptive technologies of all time. Biggest because, once the technology is commercialized, many big players all around the world will have to change their base of technology. Technology innovation and upcoming technologies are posing threat on the current industry and are eventually forcing companies out of business. New technologies are exerting power to shape the market and change the basis of the competition. Hence, it is import ant for the companies to continuously assess the technologies and capabilities.

Sunday, September 29, 2019

Iqbal’s Theory of Knowledge Essay

Iqbal cannot be classed under any of the three schools of philosophical thought: the empiricist, the rationalist or the intuitionist. In his theory of knowledge, sense perception, reason and intuition, all are combined in an organic whole. He knew full well that light from one direction alone could not illumine the whole of reality in all its manifestations. The ontological problem needs to be approached from all angles, scientific and religious, in order to secure some articulate, luminous and well-established grounds. It is in the light of this view that he advances his theory of knowledge, which promises both direct evidence and indirect experience of God or Reality—the former by intuition or immediate experience and the latter by reflective thought. Rationalism, though not admired, is not wholly condemned and discarded by him. On the contrary, according to him, if rationalism is not divorced from concrete reality, it represents truth. This is visible from his own attitude and is also betrayed by his admiration for prophets and mystics and non-mystic rationalists, whose quest and yearning for a coherent system of ideas resting on a rational foundation and rendering religion more secure and fruitful is well-known[1]. He admits and justifies the metaphysical methods. In his words, â€Å"Now since the transformation and guidance of man’s inner and outer life is the essential aim of religion, it is obvious that the religious truths which it embodies must not remain unsettled. No one would hazard action on the basis of doubtful principles of conduct. Indeed, in view of its function, religion stands in greater need of rational foundation of its ultimate principles than even the dogmas of science. Science may even ignore a rational metaphysics; indeed it has ignored it so far. Religion can hardly afford to ignore the search for a reconciliation of the opposition of experience and justification of the environment in which humanity finds itself. â€Å"[2] But rationalism, as preached by Iqbal, is not based upon logical categories or mere abstract representations. Born of and nursed in the realism of purely abstract ideas it is not divorced from concrete, reality. It has a definite function to perform which should not, however, be over-emphasised to the detriment of other knowledge-yielding elements—at the expense of sense experience and other sources of knowledge. Thus, while Iqbal embraces rationalism, he is not prepared to justify it at the cost of sense experience. Abstract thinking apart from the latter is of no consequence and even dangerous. He criticises Socrates, Plato, Mu’tazilites and other thinkers for avoiding visible reality as unreliable and misleading. Socrates restricts the field of inquiry to the human problems particularly to morality. â€Å"Trees†, he says, â€Å"can teach me nothing. † Even within the human field he believes knowledge is possible only through concepts. [3] Only reason could give true and ultimate know-ledge; sensation gives only imagination or at the most belief. Plato also accuses sense-perception as capable of giving mere opinion and not real knowledge. He rests all knowledge upon pure reason and weaves the whole fabric of Supreme and Ultimate Reality out of ideas, taken as Eternal and Really Real. This attitude towards sense-perception is not without a parallel in the subsequent thought. Ibn Rushd and Al-Ghazali, the former while defending and the latter while attacking Greek Philosophy, have troddden the same path as far as the avoidance of empirical reality is concerned. Iqbal attacks Ibn Rushd as well as Al-Ghazali. He contends that Ibn Rushd, through his doctrine of Immortality of the Active Intellect, takes a view opposed to what the Qur’an has to say about the value and destiny of the human ego, and thus obscures man’s vision of himself, his God and his world. Similarly, Al-Ghazali’s philosophical scepticism is held by him as an unsafe basis for religion; it is also not wholly justified by the spirit of the Qur’an[4]. All this shows that Iqbal is in favour of taking full congnizance of the visible and concrete reality. He does not encourage man’s contemplative spirit to the extent that it may lead to his withdrawal from the world of matter, which. with its tempora. flux and shifting phenomena, is organically related to Ultimate Reality. Hence, for the purposes of knowledge, it is entirely inconceivable to turn away from the material world and to withdraw into a purely contemplative circuit. There is no possibility of complete separation or independence of thought from concrete experience. On the contrary, one should take his start from here because it is the mental comprehension of the concrete that makes it possible for the intellect of man to pass beyond the concrete. [5] He invites us to take account of and to be fully awake to the material phenomena with all their passing and changing scenes and sights—heaven and earth, sun and stars, clouds and mountains, deserts and oceans. They are the signs of the Ultimate Reality and it is the duty of- one to reflect on these signs and not to pass by them as if one is like the deaf and the blind, for one who does not see these signs in this life will remain blind to the realities of the life to come. [7] They are the manifestations of Divine Effulgence and reflective observation into their ultimate nature reveals the secret of Divine Reality[8]. As a matter of fact, Iqbal takes an eclectic view of the whole question. He preaches neither reason nor sense-perception exclusively. Sensation being a chaotic jumble, upholds Iqbal, cannot lead to knowledge. It is reason that imparts harmony, organisation and coherence to this chaotic jumble and moulds it into a knowledge-yielding pattern. He pleads for reflective observation and scientific experiment. He takes full advantage of modern empirical science, though he never stops short at the visible aspect of Reality as the last word in the realm of existence. The sensible Reality is only a symbol of the Ultimate Reality, and the empirical attitude would bring us into contact with it. Qur’an also takes both the conceptual and non-conceptual attitude towards existence. It recognizes the rationalistic attitude as the cause of the superiority of man over angels, and goes on to say that man has the ability to name things which endows him with the power of capturing them intellectually and thereby rising in the level of existence. But concepts here are not abstract logical entities. They are based on facts of sensation and are indissolubly united with the sensible and observable aspect of Reality. In other words, the knowledge of things is described by Qur’an as the knowledge of names. [9] Again, Qur’an repeatedly invites man to take acount of the physical phenomena. As lqbal puts it, the Qur’an â€Å"sees in the humble be a recipient of Divine Inspiration and constantly calls upon the reader to observe the perpetual change of the winds. the alternation of day and night, the clouds, the starry heavens, and the planets swimming through infinite space†[10]. Iqbal fully agrees with the non-classical attitude of Qur’an and develops his own theory in consonance with it. Qur’an has a place for both metaphysics and empirical sciences. And it is through metaphysical search-light that Iqbal examines scientific researches and develops his own theory. But Iqbal is fully alive to the limitations and short comings of knowledge gained through the normal channels. Firstly, scientific investigation and analytic thought have inherent limitations which are unavoidable. Scientific analysis is never complete and exhaustive in its nature. Reality is an organic whole. Its parts are united by vital internal connections. This underlying relationship confers a wholeness in the diversities and pluralities. Analysis would select a part of reality which, when taken apart, would become lifeless, shorn of the qualities it has by virtue of its integral position within a whole. It is rendered meaningless apart from its relations, as a part separated from its pattern, a single dot or line taken out from the whole picture. Besides, analysis because of the immense complexity of its object can never attain ideal completeness. The ideal analysis involves the description of all the constitutive elements of a subject. It fails if any single element escapes notice or the units reached in the process are not ultimate. However, such an ideal cannot be accomplished, hampered as we are by our limitations. If we go a step further we find that the defect of analysis would also distort synthesis which is based upon it. In synthesis those elements only are combined that are discovered in the process of analysis. Thus the incompleteness of analysis results in the incompleteness of synthesis. It is obvious that an object discovered in this manner is not what it actually is but merely what it is mentally cons-trued. Even if the completeness of analysis is taken for granted, what we cannot afford to overlook is the importance of the vital inner connections underlying the whole reality, which are lost through the analytic procedure. Spaulding, who believes that the whole is nothing but â€Å"the parts and their properties and the relations relating the parts and the possibly specific properties of the whole,†[11] has tried to remedy this defect of analysis. He asserts that the knowledge of the parts when accompanied with the knowledge of their relations could give the knowledge of the whole. This assertion carries some truth in the mechanical realm but is futile in its application to the knowledge of an organic whole. The properties of the whole can be known from the observation of the behaviour of the whole as a whole; analysis does not disclose them. â€Å"‘[12] Iqbal has kept this fact in view and does not over-emphasise the role of the analytic method, though he assigns to it a legitimate place in the practical domain. According to him, empirical sciences give a sectional and fragmentary knowledge of reality which, though trust worthy, verifiable and even useful so far as the prediction and con trol of events of nature go, does not explain Ultimate Reality in its entirety. Glorify as they do in an artificial, selective and sectional process which uses concepts relatively applicable to different levels of experience, they fail to give the complete view of Reality. [13] It is an irony that our analytic thought first puts a veil on the face of Reality[14] and then endeavours to penetrate through it. Its path is zigzag and intricate; its approach and progress are gradual and slow. [15] Yet another difficulty besets the knowledge of ultimate reality. The subjective element, as the constituent element in the sensible Reality, has rendered the really Real unknowable. Kant goes so far as to reduce even space and time to subjective modes or forms of apprehending Reality; they are no more objective realities, empirical concepts or outward intuitions. They are merely the constructions or forms of inner sense, the necessary a -priori representations under-lying all outer intuitions. [16] The manifold of senses when it reaches us, has lost its purity; in order to reach us it has to fulfil the formal conditions and is bound to pass through the coloured glasses of space and time. â€Å"The thing in itself is only the limiting idea. Its function is merely regulative. If there is some actuality corresponding to the idea it falls outside the boundaries of experience and consequently its existence cannot be rationally demonstrated. â€Å"[17] Iqbal also believes that serial time and space are subjective and not objective realities. [18] But he disagrees with Kant in so far as the acquisition of the knowledge of Ultimate Reality is concerned. The Ultimate Reality lies outside the normal level of experience, inaccessible to sense-perception and pure reason. But the normal level is not the only knowledge-yielding level. [19] Though Iqbal is convinced that serial time and space ate subjective, he departs from the view that they are the final and inflexible mental forms determining and limiting all knowledge. He takes the view that our intuitive experience is not determined and systematised by space and time. When we dive within our own self and pass from sense-perception to intuition of the self, we perceive Reality, not as a concept or intellectual onstruction, not as a solid block or substratum underlying or holding together all experience, but as a dynamic and creative flow living in pure duration in which time is divested of spatiality and appears in its organic wholeness. However, it is no less true that this stage is attainable only through profound meditation, when the appreciative self gets the upper hand and all its potentialities are unfolded. It is now that the psychological experience expands into the intuition of Ultimate Rea lity—God. It discloses Ultimate Reality as a flux, a dynamic and creative flow that involves a progressive synthesis of various stages, in which life, thought and purpose all interpenetrate to form an organic whole. [20] Iqbal identifies intuition or immediate experience with love. Intuition or love would unfold to him new spheres of illumination, wherein unroll vistas of Reality comprehending Divine Presence itself. In contrast, the knowledge yielded by intellect is sectional, piece-meat and fragmentary because it is involved in the labyrinth of space and time. The knowledge through intuition is not imparted partially and byinnuendo. It is grounded in the deeper and higher self of man. It is incorporeal and eternal and leads directly to the incorporeal and the eternal. [21] Knowledge through love or intuition means knowledge through the heart, wherein we have change but no succession, pure duration but no serial time. [22] It comes with a surer step, has a higher and more profound air of authority about it and is born out of direct and immediate luminousness. But it should not be construed that intuition is antagonistic to analytic thought or intellect. Love and intellect both aim at the knowledge of reality and differ only in the courses they adopt. The intellect grasps and views certain parts of reality as abstracted from the whole; it gives only the temporal aspect of reality. Intuition reveals the reality in its wholeness and fulness. It is the method which takes things as a whole without waiting for analysis. Through a comprehensive grasp it gives the deepest truth. It forms that point of vantage which affords a perspective of the whole domain of Reality. Rather, it is the gateway at which Truth and Reality â€Å"rap and knock and enter our soul. Intuition and intellect together may be visualised as a double-edged sword in man’s hand. With one edge he invades the Ultimate Reality; with file other he invades the Universe. In other words, the ego has two eyes: with one eye he sees and approaches the inner and invisible Reality, with the other, the visible Reality. If the ego sees with one eye, it commits a great sin; if i t uses both eyes it reaches its destination. [23] Neither of them constitutes the exhaustive method or the only road to truth. Both should be employed and potentiated in the pursuit of exhaustive knowledge. They have a common source and are complementary to each other. Intuition is only a higher developmental state of intellect, and in order to view Reality as a whole it is necessary that we supplement intuition with intellect. [24] Intellect, when it is fused with love, becomes, as it were, illuminated by Divine Light; similarly, love when buttressed by intellect becomes more powerful and potent. [25] Knowledge based entirely upon reason and intellect, the intricate labyrinth of abstract reasoning, can lead to that articulation of beliefs which constitutes proof and demonstrated knowledge. But unless intellect is supplemented with intuition, this knowledge would become narrow, partial and lifeless and would lead to stagnation and pedantry. Intuition is its life and spirit; it is its â€Å"ruh ul-qudus† without which it would be reduced to a mere magic show, too impotent and crippled to lead us on to fruitful results. [26] Intellect, if not guided by love, becomes devilish or satanic—an evil force. It generates darkness and leads the world to blind power, chaos and destruction. Unanimated by love it is dead and lifeless, and its arrow, unguided as it is, flies without aim. 27] Let it be quickened and guided by intuition, love, yearning, and it shall yield knowledge par excellence—good, rounded and indispensable knowledge—knowledge which is power, encompassing heaven and deriving light from the stars, which contains the description of the whole existence and to which is related the destiny of the whole of existence. Intellect infused with intu ition gives celestial and divine knowledge. [28] Intuition or love is thus the very law of life and regulative power. It expands and enriches personality, and confers vision. At the same time, it is corrective of intellect and abstract thought, of science and common sense. If the above analysis is correct, the unqualified dismissal of the role of intuition or love in the achievement of knowledge as unscientific by the apostles of reason would appear to be highly unreasonable. Though intuition is a mode of dealing with Reality in which sense-perception has no part to play, yet it gives knowledge, which is as concrete as that yielded by any other experience. [29] Intuition has its peculiar characteristics which differentiate it from intellect and sense-perception. They can be enumerated as follows: 1. It gives the direct and immediate experience of Aboslute Reality or God. â€Å"God is not a mathematical entity or a system of concepts mutually related to one another and having no reference to experience. [30] Intuition gives the experience of God as sense-experience gives the experience of perceptible reality. And as regions of normal experience are subject to interpretation of sense-data for our knowledge of the external world, so the region of mystic experience is subject to interpretation for our knowledge of God. [31] 2. Mystic experience is characterised with un-analysable wholeness.  It gives reality as an indivisible organic unity, not as broken segments with many missing links. The reason is that it does not entangle itself in a sectional treatment of reality, which would allow only a selective study of certain parts of its visible aspects. This modus operandi is the de-light of rational consciousness, which specialises in analysis and synthesis as dictated by the practical needs of adaptation to our environment. [32] As for example, out of the innumerable sense-data in a room, our rational consciousness selects only that which on synthesis would yield us the single experience of a table. 33]In mystic experience which includes the cognitive element in its minimum degree, there is no possibility of such analysis. It is unique in so far as it ranges beyond these frontiers and brings us into contact with the total passage of reality, in which all the diverse stimuli run into one another forming a single un-analysable unity, and in which the ordinary distinctness of subject and object does not exist. [34]But we should not run away with the idea that mystic experience is some â€Å"mysterious faculty†[35] having no continuity with ordinary consciousness, as maintained by William James. 3. God or Ultimate and Perfect Reality is both immanent and transcendent. He not only permeates and encompasses the universe but also His domain rolls beyond it. He is the unique Other Self that transcends and encompasses the private personality of the finite individual Self. Mystic experience brings the mystic into direct communion with God, â€Å"momentarily suppressing†[36] his own individuality. He is for the time being submerged in Supreme Reality and loses consciousness of himself as a distinct and private personality. But he emerges from his experience all the richer for in this brief moment of intimate association with God he has perceived Him as an Independent Other Self and as a Concrete Individual. It is, therefore, erroneous to presume that the mystic state is â€Å"a mere retirement into the mists of pure subjectivity. â€Å"[37] Far from being so the contents of this experience are as objective as the knowledge yielded by an ordinary social experience. This may sound strange because we tend to believe that all objective experience must necessarily stem from sense-perception. But it is an extremely fallacious view. For, if it were true, we could never be sure of the reality of our social experience in so far as we know others as conscious beings. Granted that the knowledge of visible reality is based on sense-perception. granted also that the knowledge of our own inner and outer self is based on inner reflection and sense-perception, but when it comes to the knowledge of other conscious beings as such we are undergoing immediate experience—we are inferring the existence of a similar consciousness in them on the analogy of our own emotional states, which are exhibited by the two of us by similar physical movements. We do not tarry to work out or belabour the analogy in our daily lives; but the knowledge that the individual before us is a conscious being floods our mind as an immediate experience, which is further supplemented by his response to our signals a fact which gives completeness to our fragmentary meanings. We never entertain any doubt about the validity of this knowledge because of its inferential quality. In the ultimate analysis the mystic and the social experience are parallel to each other; and they- therefore belong to the same category. 4. The mystic experience is direct and immediate and hence does not lend itself to communication as such. it is feeling rather than thought, but like all other feelings it has a thought element which gives it direction and shapes it into an idea. it has two aspects: non-temporal and temporal. The non-temporal aspect is feeling, whereas the temporal aspect is idea. The non-temporal aspect is also not without a sense of direction. Feeling is outward-pushing as idea is outward-reporting.  Feeling is ever directed towards something that is feeling, some objective which transforms its characteristic instability into stability. It gives the direct vision of reality, But mystic experience, untouched as it is by discursive intellect, would not lend itself to transmission in logical forms. Nevertheless it seeks expression in thought and can be conveyed as interpreted by the prophet or the mystic who has experienced it. [39] 5. The mystic eperience reveals Reality as an eternal whole unbounded by past and future, as a single eternal now. nd establishes the unreality of the serial character of space and establishes the unreality of the serial character of space and time. But this state does not abide. It gives the vision of reality and soon fades away leaving a sense of authority behind it. [40] â€Å"Both the mystic and prophet return to the normal levels of experience; but with this difference that the return of the prophet may be fraught with infinite meaning for mankind. â€Å"[41] The path to intuition, according to Iqbal, lies through religion. The intuition of the self as a psychological experience is approach-able to all even at the normal level. But the higher intuition or the intuition of God is achieved gradually through a definite course only as the religious consciousness expands in intensity and richness. It consists of three stages, faith, thought and discovery. The first is the period when the individual, through his adherence to the unconditional command, cultivates self-discipline. Here we have the undemurring surrender to Divine Law without the interference of reason or logical demonstration. It enables man to find his niche in the set-up of political and social life. But so far as the evolution of man’s inner self is concerned it is of no consequence. This stage leads to the next where reason and rational understanding manifest themselves as the source and ground of the authority of discipline, thus basing religion on metaphysics or philosophy. This is followed by the third and highest stage where philosophy gives place to psychology and the individual develops a yearning to attain direct contact with Divine Reality. It is here that religion becomes a matter of assimilation of life and power; and the individual achieves a free personality, not by releasing himself from the fetters of the law, but by discovering the ultimate source of the law within the depths of his own consciousness†. [42] The Book is not imposed as something external but is revealed to a prophet. It is the period of discovery or intuition. â€Å"The climax of religious life, however, is the discovery of the ego as an individual deeper than his conceptually describable habitual self-hood. It is in contact with the Most Real that the ego discovers its uniqueness, its metaphysical status and the possibility of improvement in that status. Strictly speaking, the experience which leads to this discovery is not a conceptually manageable intellectual fact: it is a vital fact, an attitude consequent on an inner biological transformation which cannot be captured in the net of logical categories. It can embody itself only in a world-making or world-shaking act; and in this form alone the content of this timeless experience can diffuse itself in the time-movement, and make itself effectively visible to the eye of history. It seems that the method of dealing with Reality by means of concepts is not at all a serious way of dealing with it. Science does not care whether its electron is a real entity or not. It may be a mere symbol, a mere convention. Religion, which is essentially a mode of actual living, is the only serious way of handling Reality. â€Å"[43] Science deals with concepts, factual reality or the â€Å"causality-bound aspect of nature†, but the physical, sensible and external causality-bound aspect of nature does not exhaust the realm of Reality. The other aspect of reality is not less important than the visible one. It invades consciousness from another direction. untouched by rational thought dealing with the optically present universe. This broad path can be opened through religion only, because religion concerns itself with deed, which is the outcome of the constant attitude of man’s whole personality or structure to reality. The deed, â€Å"i. e. the control of man’s physiological and psychological processes†, is dynamically related to reality and prepares the finite self for immediate association with Infinite Ego. [44] Hence, religion, as lqbal would have it, is not a mere collection of dogmas or theological formulae: â€Å"Conservatism is as bad in religion as in any other department of human activity. It destroys the ego’s creative freedom and closes up the paths of fresh spiritual enterprise. â€Å"[45]Religion in its highest manifestation does not imply the life-denying and fact-avoiding attitude. It does not work as an external imposition on the free and spontaneous expression of human personality. On the contrary, it is the open sesame to fresh and mere fruitful directions to communicate with the Ultimately Real. It awakens and actualizes the level lying close to the normal level, directing one’s vision to the inner side of the self. It regenerates the inner powers and possibilities of the human self. It expands and enriches the fields of human thought and emotion. It unlocks fresh spiritual sources. During this period man gets the power to overcome his intellectual reconstruction and to penetrate the crust of causal sequence and spatio-temporal manifold. He comes into contact with the everlasting and eternal source of life and power. Here we have a picture of Iqbal’s theory of knowledge in which he endeavours to give us a clue to the Ultimate Reality. Whether the perfect knowledge of the actual and The Ultimate Reality, of the final nature and essence of things is possible is a very subtle question. Iqbal’s answer to it is an unhesitating, bold and optimistic affirmation. Reality can be known, grasped and comprehended not only in its partial and fragmentary aspect but also in its completeness. The great merit and virtue of his theory lies in the fact that he does not adopt and exalt any one method at the cost of the others.

Saturday, September 28, 2019

Raytheon Corporations New International Market in South Africa Research Paper - 4

Raytheon Corporations New International Market in South Africa - Research Paper Example When it comes to devising the most effectual security solutions, Raytheon Corporation employs all its proficiency at its disposal. Raytheon Corporation exploits all its advanced technological expertise and partnering with its experienced teammates and clients in the security field. As an integrator, Raytheon Corporation employs software solutions and equipment that are best suited to meet particular security requirements by clients. The key aspect of Raytheon Corporation’s growth can be attributed to its strong dedication to the international marketplace (Raytheon Corporation, 2014).  With the present global economy, the risk of expanding into other nations can be high; however, South Africa may be a strategic spot in Africa owing to its transportation location and its stabilizing economy. With the South African government being the main target of this expansion, this move may also be the most favorable for Raytheon Corporation. The South African government has the full capa city to expend whatever may be required to aid in maintaining the safety of its assets. South Africa possesses a huge potential to do business with since it has a relatively stable political and economic system. Moreover, South Africa has an excellent position in the African continent; for this reason, it makes transportation by sea more cost efficient and easier.  South Africa’s current exchange rate stands at one U.S. dollar against 10.5432 South African Rand (Oanda, 2014). The political risk in South Africa would be minor since there have been close political ties between the U. S. and South Africa since 1994. With these well-built political ties among the two countries and the multiple ambassadorial trips that are taken by both parties since 1994, the risk of immediate losses owing to politics would be little. Moreover, there is also a local U.S. embassy established in South Africa, to address various diplomatic

Friday, September 27, 2019

Smoking is good for health persuasive speech Essay

Smoking is good for health persuasive speech - Essay Example Many have argued against smoking bringing forward its impacts and I believe many here are of the same feat; but few have focused on the benefits it has. After a careful assessment of viable sources, I have come to concur with experts that smoking is good for the health. i. Through smoking, an obese person can loose weight as many studies have shown that smokers are often slimmer. According to Recer (1998), nicotine is believed to be an appetite suppressant thus reducing food consumption of obese people which ultimately helps to lower their weight. ii. Experts have established that smoking can help to prevent the commencement of several dementias. Recer (1998) reveals that nicotine helps to stimulate chemical receptors in the human brain. The absence of these receptors causes dementia; hence their stimulation will stop the onset of dementia. iii. Experts argue that smoking can help to sharpen the memory and concentration; thus can be used as a remedy to help those suffering from Alzheimer live longer. It was suggested by the Victorian doctors that smoking be used as a concentration booster and for sharpening the brain. iv. Smoking reduces the risk of knee-replacement surgeries. Smokers usually go broke while trying to buy a packet of cigarettes but most have no idea that it saves a lot of money by avoiding knee-replacement operations. According to an Australian study, non-joggers primarily made of smokers reported no incidences needing such operations while the obese joggers were popular in surgical units for knee-replacement surgeries. v. The risk of Parkinson’s disease is reduced by smoking. A research by a group of Harvard researchers established that smoking is inversely related to Parkinson’s disease. It was found that the more the smoking the more the protection, and that this protective effect weakens when a smoker quits smoking. vi. Smoking enhances the functioning of the heart drug clopidogrel. This is a drug used to reduce

Thursday, September 26, 2019

Article review Assignment Example | Topics and Well Written Essays - 500 words

Article review - Assignment Example Moreover, I will suggest additional research finding that would make the article more authentic, and bring some more understandings. Parker begins by describing the economic history of depression. In this period, there was high rate of economic growth, and increased consumer spending and purchasing power. He claims that economic growth was only disrupted minimally by the three recessions that took place in 1923, 1924, and 1926 (Parker, 2010, Web). Parker also claims that the policy adopted by the federal government were key in economic growth. For example in the 1920’s, the Federal Reserve used monetary policies to stabilize business cycle fluctuations (Parker, 2010, Web). Moreover, there were also high demands of America goods, as World War 1 did not affect it like other European countries. In addition, the Gold Standards were not much entrenched during this period (Parker, 2010, Web). Secondly, Parker describes the beginning of the economic anguish. He talks of the federal government failures to notice dangers leading to the great depression. He says that deflation failed to operate, as it was case in the beginning of 1920. Moreover, the European economies had recovered and Gold Standards became a mode of transaction. He also focuses on failures of the economy, and factors that might have led to this failure. He describes failures in the bank claiming that there was no deposit insurance and this led to panic. He also cites various forms of contemporary explanation on the great Depression. For this reason, various theories are highlighted such as liquidationist theory. He also describes the modern explanation based on monetary hypothesis of Friedman and Schwartz together with the nonmonetary/financial hypotheses of Bernanke and Fisher (Parker, 2010, Web). Parker claims that based on his own understanding, the non-monetary theories cannot support the theories menti oned to account the state of the economy during

Wednesday, September 25, 2019

Your objective is to understand how management (directors and his Essay

Your objective is to understand how management (directors and his team) of BP company, dealt with the oil spill in the gulf of Mexico - Essay Example They came up with approximation of ninety days and forty billion as the cost through seeking money from other companies. According to Bryant & Hunter (1-2), BP started by attempting to install a valve to shutoff one of the leaks that were underwater, though, it was a difficult process that they thought would not succeed. Two days later, they had managed to stop oil flow from one of the three leaking points on the riser in the Gulf of Mexico and the spoiled oil well. However, this effort did not solve the overall problem of leakage and they had to improvise another method to solve the problem completely. They came up with the idea of installing a cofferdam at the end of the riser, though; it was not successful because there was extra formation of hydrate crystals in the dome. This made them use the junk shot method to wad the leak that was undersea by pumping shredded materials into the well at an extremely high

Tuesday, September 24, 2019

Financial Plan Case Study Example | Topics and Well Written Essays - 1250 words

Financial Plan - Case Study Example The following three partners and their responsibilities are - CEO - Miss Josefa Calfoforo; responsibility includes: Managing customer database Contacting and dealing with client Financial aspect of the business, such as: budgets, profit & loss statement etc. Finalizes fix cost Co-operate with Chief Sales Executive and Chief Designer Chief Sales Executive - Miss Elizabeth Carter; responsibility includes: Generating sales through marketing and sales campaign In charge of orders Public Relation Chief Designer - Miss Yu-Een Eav; responsibility includes: Programming website Designing of diaries Source materials from suppliers Manufacturer Updating technology Also, two employees are to be inducted for the day to day operations of the business in the first year. Performance Monitoring of Plan edesignerdiary will measure performance by looking at number of units (diary) sold in a month. edesignerdiary will measure the satisfaction of the e-commerce business operation by conducting online surveys after each purchase. edesignerdiary will measure quality of diary against competitors every 6months. Critical Success factors Offer a clear description of the goods on offer Provide a total price for the goods (including any taxes payable and freight cost) Have a refund and return policy Clearly explain how privacy issues will be handled Customers acceptance of privacy issues Have reliability, trust or privacy seals Have clear delivery dates Customers who make a purchase from another electronic site or mail house do so without physically, seeing or touching the product they are buying. Therefore customers will be more likely to purchase items from electronic retailers who adopt these critical success factors as a minimum. Time required for raising...A total of $30,000 is personal investment. According to the Rate if Return on Owners Investment Ratio each partner will individually receive 3.59% return in 2006, 2.44% return in 2007 and 8.64% in 2008. Finance options which the partners have already decided to adopt is the government grant for small business and the Export Market Development Grant. Combined the business will be able to receive finances of up to $15,000 Customers who make a purchase from another electronic site or mail house do so without physically, seeing or touching the product they are buying. Therefore customers will be more likely to purchase items from electronic retailers who adopt these critical success factors as a minimum. Establishing and operating edesignerdiary is a great personal and financial investment however, accidents and problems do arise; these can be minimized by taking out insurance. The business has decided to get insurance through Allianz as they are able to tailor the insurance policy to meet business requirements. edesignerdiary differentiates its custom diary making through strategic edge such as gathering information from the individual to compose a custom made diary that contains special features selected by the individual. Hence it is a hand made diary that is of high quality produced in Melbourne - Australia. Edesignerdiary will win by having a unique