American Manifest Destiny and the Genocide of the...

United States Manifest Destiny and the Genocide of the American Indian Manifest Destiny is a phrase used to express the belief that the United States had a mission to expand its borders, thereby spreading its form of democracy and freedom. Originally a political catchphrase of the nineteenth-century, Manifest Destiny eventually became a standard historical term, often used as a synonym for the territorial expansion of the United States across North America towards the Pacific Ocean. The United States government believed that the Native Americans were a problem that was hindering Manifest Destiny from being fulfilled (or at the very least, used the idea of Manifest Destiny to gain land and resources the Indians possessed), and would do†¦show more content†¦government to acquire Indian Territory. The Seminole nation in Florida, one of the tribes being targeted for removal to areas west of the Mississippi, violently resisted the acquisition. The ensuing war cost the U.S. upwards of twenty million dollars, and ended in the death of fifteen hund red American soldiers. In the end, almost three thousand Seminole had been relocated forcibly across the Mississippi, and countless others killed. This relocation was an idea that had already been proposed by previous U.S. presidents, as George H. Phillips points out in his book, Indians and Indian Agents (1997): â€Å"With the end of Seminole resistance, the goal of relocating eastern Indians to the west, suggested by Thomas Jefferson, proposed by James Monroe, and implemented by Andrew Jackson, largely had been achieved.† This goal of relocation, and the annihilation of Indians that would come along with it for years to come, was largely achieved as a direct result of U.S. President Andrew Jackson. In his first inaugural address, Andrew Jackson claims that under his administration the Indians would be treated justly: â€Å"It will be my sincere and constant desire to observe toward the Indian tribes within our limits a just and liberal policy, and to give that humane andShow MoreRelatedManifest Destiny and the Genocide of the Native American Indian1366 Words   |  6 PagesA. Plan of the Investigation I. Subject of the Investigation How did the Manifest Destiny ideal affect the Native Americans in the 1830’s? II. Methods a. Research about the origins of Manifest Destiny and the history of the Native Americans from 1830 to 1839. There were two websites that we particularly helpful to me. Reliability, how recently it was updated and how easily it could be edited by Internet users were the main criteria used when selecting a website. b. Writing a rough bibliographyRead MoreThe Ethnic Cleansing Of The United States1237 Words   |  5 Pageslebensraum, the idea of Manifest Destiny in the United States transposed to a German-defining East in Poland and Russia. Inspired by the stories of May and lebensraum, Hitler repeatedly compared Manifest Destiny in the United States and a German-defining East in Poland and Russia. To what extent did western fiction influence the political landscape and Hitler’s War in East Europe? Historians have argued that Hitler was inspired by the stories of May and Manifest Destiny in the United States. HistorianRead MoreThe Discovery Of The 19th Century1511 Words   |  7 PagesIn the 19th century Americans saw it as their duty to accomplish what many might believe to be unrealistic, to connect North America from coast to coast. Manifest Destiny is a term that describes the attitude that many Americans had during this era of transformation and progression. Americans claimed the right to bring civilization westward and transform the unknown world into a land where men could live and be free. However, with this movement of progression Westward meant destruction for many NativeRead MoreThe End Of The 19th Century2247 Words   |  9 Pagesrailroads and electricity, the U.S. was undergoing a profound economic revolution and as the economy grew, U.S. territory would also experience great expansion into the west, Latin America and Asia. The first form of U.S. expansion would occur in the American west. In 1862 the U.S. government would encourage its people to move out west in an attempt to improve and cultivate the land. The Homestead Act of 1862 would provide any adult citizen, or intended citizen, who had not borne arms against the U.SRead MoreManifest Destiny Essay1346 Words   |  6 Pagesevolve into the American ideology known today as Manifest Destiny. Still, it was not until 1834 that the newspaper editor, John L. OSullivan, is believed to have first coined the phrase â€Å"Manifest Destiny† when he said in his article Annexation, ...our manifest destiny to overspread the continent allotted by Providence for the free development of our yearly multiplying millions (OSullivan 2). Manifest Destiny produced many conflicts, like the Mexican American War, caused the genocide of multipleRead MoreAmerican Imperialism : America s Quest For Dominance1223 Words   |  5 Pagesnearly complete. Soon, after the civil war Americans began pushing wes t in the name of â€Å"manifest destiny, the belief that the United States had a ‘God-given’ right to aggressively spread the values of white civilization and expand the nation from ocean to ocean† (Roark 14). This is the start of American imperialism that lasted over a century, during the time; genocides and countless death are milestones in America’s quest for dominance. I am defining American imperialism is the policy expand one’s influenceRead MoreA Brief History of American Imperialism1391 Words   |  6 Pageseventual spread of the American nation beyond the Mississippi into Native and French land, referred to as â€Å"Manifest Destiny† by John O’Sullivan, was rationalized as a realization of their God given duty. The Louisiana Purchase set the precedent for unrestricted westward expansion in America, and allowed for others to follow in his footsteps. Characterized by racist overtones, a lack of the â€Å"consent of the governe d, and ethnic cleansing, there is no valid distinction between this American continental expansionRead MoreThe Hbo Movie : Conspiracy1431 Words   |  6 Pagesthe Only Genocide The Holocaust is well recognized and accepted as the epitome of human atrocities and shame. The Holocaust will ever be tied to one of mankind’s darkest hours and to a nation’s embrace of genocide. The question posed here is, were the actions of the Nazi’s truly worse that those committed by others through-out history? Of particular interest is the genocide of Native Americans and why their plight doesn’t warrant the same recognition of the Jewish Holocaust. Genocide Defined AsRead MoreThe Road Of The Trail Of Tears1334 Words   |  6 Pagesthe most controversial government sponsored events in American History. Was America justified in destroying a culture in its pursuit of Manifest Destiny, or did they feel it was their only option in this matter at the time? Based on research, I feel that the American policy of Indian removal and relocation was extremely unethical and unjustified in its motives and execution. Before Europeans arrived in present-day America, the Native Americans were living on millions of acres of land their ancestorsRead MoreThe New World974 Words   |  4 Pages Impressions are perhaps the only valuable information one has to tackle the unknown. Much like To understand the Genesis of stereotypes one must first understand what stereotypes are. In Celluloids Indians Jacquelyn Kilpatrick describes stereotypes as such, â€Å"‘ [s] tereotypes are evaluative concepts about status and roles and as such are central to interpreting and evaluating social groups including one’s own.†Ã¢â‚¬â„¢ (xvi) Kilpatrick explores â€Å"the social, ideological and political construction†(xvi) of

Analysis of Hong Kong Economy During Financial Crisis Free Essays

string(167) " of the goods produced in the mainland of China through the outward processing arrangement were sent back to Hong Kong and re-exported to other countries/territories\."  ·808 · Proceedings of the 7th International Conference on Innovation Management An Analysis of the Hong Kong Economy after the Financial Crisis Cao Hongliu School of Management, Guangdong University of Technology, Guangdong, P. R. China, 510520 (E-mail: hongliucao@126. We will write a custom essay sample on Analysis of Hong Kong Economy During Financial Crisis or any similar topic only for you Order Now com) Abstract This paper analyzes the current economic development and the status of leading industries in Hong Kong. It shows that Hong Kong economy, which is mainly comprised of the service industry in particular, facing with both opportunities and challenges after the financial crisis. Hong Kong economy has a wide range of needs in information technology, electrical and electronic technology, and manufacturing technology. Development in these areas has great significance to ensure sustained development of Hong Kong economy. Key words Hong Kong economy status; Leading industry; Service industry 1 Introduction Hong Kong’s a small and open economy system and international financial center, its economic development face many new challenges because of the impact of the global financial crisis. Therefore, a comprehensive analysis of the Hong Kong’s economic development and their leading industry status becomes an important issue. 2 Overview of Hong Kong Economy 2. 1 The services sector is a leading industry in Hong Kong From Table 1, we can see that the services industry is a leading industry of Hong Kong economy. During the decade from 1997 to 2006, services sector in the Hong Kong economy has gained greater prominence. This change has already been reflected in the share of contribution of the services sector to the local GDP. The contribution of the services sector to GDP increased from 85. 9% in 1997 to 91. 2% in 2006. Based on the industry definition of Hong Kong Census and Statistics Department, The services sector includes wholesale, retail and import and export trades, restaurants and hotels; transport, storage and communications; financing, insurance, real estate and business services; and community, social and personal services. Table 1 Gross Domestic Product (GDP) by Economic Activity (at Current Prices) GDP by Economic Activity(2004-2007) 2004 2005 2006 2007 Economic activity Agriculture and fishing Mining and quarrying Manufacturing Electricity, gas and water Construction GDP 886 72 44455 39726 40376 ratio 0. 1 * 3. 6 3. 2 3. 2 GDP 847 100 45547 39924 38538 ratio 0. 1 * 3. 4 3 2. 9 GDP 849 93 45761 40364 38688 ratio 0. 1 * 3. 2 2. 8 2. 7 GDP 895 114 39282 39426 40154 ratio 0. 1 * 2. 5 2. 5 2. 6 Services 1119304 89. 9 1207873 90. 6 1297545 91. 2 1429293 92. 3 Note: Data is from Hong Kong Annual Digest of Statistics (2004-2008 Edition) edited by Hong Kong Census and Statistics Department. Data unit is in million terms and ratio unit is %. Besides, * represents the comparison had less than 0. 05% is in the total economy The services sector becomes the principal source of employment. The employment share of the services sector in total employment has increased moderately over the past decade, from 79. 8% in 1997 to 86. 6% in 2007. In 2007, the services sector as a whole engaged 3. 03 million persons out of the 3. 5 million overall employments. The services sector plays a significant role in supporting the growth of our external trade. In 2007, the value of exports of services reached $652 billion, representing an average annual growth rate of Proceedings of the 7th International Conference on Innovation Management  ·809 · 8. 6% over 1997. In 2007, merchant and other trade-related services was the most important major service group, contributing 30. 9% to the value of total exports of services. It was followed by transportation services and travel services, contributing 28. 6% and 16. 5% respectively to the value of total exports of services in 2007. In 1997, the respective percentage shares of these three major service groups in the value of total exports of services were 25. 6%, 30. % and 20. 8%. 2. 2 The structure of Hong Kong’s services industry sector Among the economic activities in the services sector, wholesale, retail and import and export trades, restaurants and hotels together contributed 27. 9% of the GDP in 2006, followed by financing, insurance, real estate and business services (25. 0%), community, social and personal services (18. 0%) and transport, storage and communications (9. 6%). Among them , financial services, trading, tourism and professional services are key industries in the Hong Kong economy. They have been the driving force of Hong Kong’s economic growth, providing impetus to growth of other sectors and creating employment. (1) Import and export trade . The import and export trade is the most important industries in Hong Kong’s service industry, has been playing an important role in the development of Hong Kong economy. The import and export trade produced a net output of HK$305. 1 billion in 2006, representing an increase of 39% over 1997. The ratio is the highest among all service industry. In 2007, there were 98 000 import and export trading establishments in Hong Kong, with 520 000 persons. At the same time, import and export trade sector is also directly promoting the development of other industries, such as logistics, transportation, business services and other services. Hong Kong’s import and export trade, including the visible trade and invisible trade two parts. The visible trade refers to the traditional commodity trade. In 2007, the value of Hong Kong imported and exported goods was $5,556 billion, representing an increase of 9. 8% compared to 2006. Hong Kong’s total exports of goods (comprising domestic exports and re-exports) in 2007 amounted to $2,688 billion, or increased by 9. % when compared with 2006. The value of imports increased by 10. 3% to $2,868 billion in 2007. With the value of total exports being less than that of imports, a merchandise trade deficit of $180 billion was recorded in 2007. In the import and export trade, the largest proportion of re-exports. This was largely attributable to the relocation of many local manufacturing ac tivities to the mainland of China. Quite a large amount of the goods produced in the mainland of China through the outward processing arrangement were sent back to Hong Kong and re-exported to other countries/territories. You read "Analysis of Hong Kong Economy During Financial Crisis" in category "Papers" During 1997 to 2007, the value of re-exports increased by 107%, while a decline of 48% was observed in the value of domestic exports. In 2007 the re-export trade to the mainland continued to grow rapidly. The invisible trade services are export and import trade of commercial services and financial services. While these services could be exported or imported by the import/export firms or companies in other sectors, most of the merchant and other trade-related services were exported or imported by import/export firms . In 2007, Hong Kong’s exports and imports of services valued at $652 billion and $322 billion respectively. Compared to 2006, exports and imports of services increased by 15. 4% and 11. 7% respectively. Net exports of services in 2007 amounted to $330 billion, this makes Hong Kong’s overall trade surplus of $150 billion. (2) Finance. Hong Kong is recognized as an international financial center, many multinational banks and financial institutions gathered here. The financial business is classified in detail, covering all aspects of the financial industry. Hong Kong three-tier system of deposit-taking institutions, namely licensed banks, restricted licensed banks and deposit-taking companies, known collectively as the authorized institutions. At the end of 2007, the number of authorized institutions stood at 200, comprising 142 licensed banks, 29 restricted license banks and 29 deposit-taking companies. 68 of them were incorporated in Hong Kong and 132 were incorporated outside Hong Kong. In addition, there were 79 representative offices of foreign banks coming from 27 economies/regions. As at end December 2007, 152 of the largest 500 banks in the world had a presence in Hong Kong. The value added generated by the banking industry amounted to $136. 5 billion, or 9. 6% of Hong Kong’s Gross Domestic Product (GDP) in 2006, representing an increase of 41. % compared with 1997. The development of the banking sector also promotes the development of other financial industries. In 2007, some 2 940 establishments and about 32 400 persons were engaged in the business. These included stock and share companies; commodity futures, gold bullion and foreign exchange brokers/dealers; stock, bullion and commodity exchanges; fund ma nagement companies; investment advisory companies; and firms providing other various financial services. The financial markets and asset management industry generated value added of about $59. billion, contributing to 4. 1% of Hong Kong’s GDP in 2006.  ·810 · Proceedings of the 7th International Conference on Innovation Management Hong Kong is also the Securities and Exchange Center and an important place for the mainland enterprises to raise funds. At the end of 2007, 1 048 companies were listed on the Main Board of the Hong Kong Exchanges and Clearing Limited (HKEx), with a total market capitalization of $20,536 billion. Despite an increase of only 7. 5% in the number of listed companies, market capitalization was observed to rise 55. 0% over 2006. Since July 1993 when the first Chinese state owned company was listed on the HKEx through issuance of H shares, the role of Hong Kong as a major fund-raising centre for the mainland of China had become increasingly important. By the end of 2007, there were 146 H shares listed on the HKEx, with market capitalization of $5,080 billion. In addition, there were also 93 â€Å"Red Chips† companies and 200 private enterprises listed on HKEx. Hong Kong is one of the most active and liberal debt markets and a leading asset management centre in Asia. (3) Tourism . In 2007, 51 900 persons were engaged in industries closely related o tourism, such as hotels and travel agents and 315 300 persons in industries partly related to tourism such as restaurants, retailers, transport operators and other service providers serving visitors. In terms of economic contribution, inbound tourism and outbound tourism together generated $45. 3 billion value added and 176 300 job opportunities in 2006, or 3 . 2% of total GDP and 5. 2% of total employment of Hong Kong respectively. The number of incoming visitors in 2007 reached 28. 2 million, increased by 11. 6% as compared with 25. 3 million in 2006 and set the highest record for visitor arrivals in history. The mainland of China remained the major source market of visitors to Hong Kong since 1994. Visitor arrivals from the mainland of China reached 15. 5 million in 2007, accounted for 55. 0% of the total visitor arrivals, followed by South and Southeast Asia (10. 3%) and Taiwan (7. 9%). In addition, Hong Kong is Asia’s major trade exhibition and business conference center. A total of 218 conventions and 78 exhibitions with international participation were held in Hong Kong in 2006. (4) Professional service . The professional service is Hong Kong’s fourth-largest service industry. The professional services industry generated $40 billion of value added, or 2. 8% of Hong Kong’s Gross Domestic Product (GDP), in 2006 and provided job opportunities for about 106 000 persons in 2007. In 2007, there were about 13 500 professional services establishments, including 3 900 accounting, auditing and bookkeeping firms, 1 800 solicitor and barrister firms, 3 300 architectural, surveying and engineering firms and some 4 500 management consultant firms. The business receipts of professional services industry increased by 10. 7% in 2007 over a year earlier. The development of professional services industry over the past decade was quite remarkable. Number of establishments and persons engaged increased by 35% and 23% respectively between 1997 and 2007. During the same period, the total number of registered professionals also increased remarkably, with certified public accountants increasing at the fastest rate of 7. 3% per year on average. 2. 3 Manufacturing company is the support for the Hong Kong service industry In this paper, the Hong Kong Manufacturing Company refers specifically to the Hong Kong manufacturing companies in the mainland. The rapid expansion of Hong Kong’s service industries in the past two decades benefited from the development of the Hong Kong Manufacturing Company and the sub-contracting business model. In the late 80’s, under the pressure of high land prices, high rents, high labor costs, a large number of Hong Kong manufacturers shifted their production to the Mainland, where the land and labor costs were relatively low, in particular the Pearl River Delta in Guangdong Province. And because of the changes in the business, many original manufacturing companies become the service company. These companies transferred their manufacturing factories to the Mainland, and kept the headquarters and other high value-added services such as marketing, order processing, material procurement, design, packaging, logistics business in Hong Kong. This business model is known as â€Å"shop in front and factory in back† mode. At the same time, in order to adapt to the changes in international markets and increase exports, many traditional trading companies, set up manufacturing factories in mainland, and formed a sub-contracting operation mode. In the sub-contractors mode, products manufactured in the mainland branch companies, headquarters in Hong Kong focused its efforts on trade, market and management. This mode of operation combined the mainland companies’ low-cost production advantage and the Hong Kong trading companies’ familiar with the international market advantage together, promoted the expeditions of business of Hong Kong trade companies and improved their production efficiency. This production mode provided a strong support to the development of Hong Kong’s service industry. The financial crisis press great operating pressure to the Hong Kong Manufacturing Company. Mostly concentrated in the Pearl River Delta region, the types of these companies are sound equipment, electrical appliances, toys, clothing, footwear and other labor-intensive industries. The development of these enterprises is based on low labor and land inputs, production technology is very low. With the Proceedings of the 7th International Conference on Innovation Management  ·811 · labor, land costs rising substantially in the Pearl River Delta region, the ompetitive advantages of the Hong Kong Manufacturing Company decreased a lot in recent years. Under the impact of the financial crisis, there has an obvious drop in experts of these labor-intensive consumer goods. Many Hong Kong Manufacturing Companies face the problem of orders reduction, profit decline, and even bankruptcy. 3 Hong Kong’s Economic Problems under the Global Financial Crisis Table 2 1997-2007 Business Receipt s Indices 1997 2002 2003 2004 2005 2006 2007 Wholesale/Retail Import and export trade Restaurants Hotels Transport Storage Communications Banking Financing (except banking) Insurance 24. 4 107. 2 104. 7 99 61. 7 157. 1 127. 1 84. 1 79. 8 38. 2 88. 3 75. 5 94. 9 73. 1 68. 8 81. 1 96. 6 86. 4 56 59. 2 85. 8 80. 4 85. 7 58. 8 69. 1 77. 4 94. 3 86. 4 65. 7 70. 5 93. 8 90. 5 94. 3 81. 9 85 90. 6 95. 1 90. 2 87. 5 86. 2 100 100 100 100 100 100 100 100 100 100 100 100 100 100 107. 4 110. 2 109. 5 113. 7 110. 6 110. 2 100. 8 119. 5 147. 9 121. 3 99. 6 119. 6 114 109. 7 120. 6 119. 1 124. 2 131. 1 122. 6 127. 8 110. 8 165. 3 249. 7 156. 2 139. 3 135. 4 135. 4 117. 1 Real estate 135. 6 71. 5 75. 9 86. 2 Business 119. 7 87. 88. 1 95. 3 services Tourism 91. 5 75. 5 70 88. 5 Computer and 53. 1 63. 7 67. 3 81. 1 information services Note: Data is from Hong Kong Annual Digest of Statistics(2008 Edition) Statistics Department. Table 3 2005 edited by Hong Kong Census and 2005-2008 the variation rati o of Business Receipts Indices 2006 2007 2007 3 quarter 9 15. 1 8. 2 15. 4 15. 7 11. 7 11. 7 9. 7 47. 7 99. 6 42. 1 27. 7 2007 4 quarter 15. 5 17. 7 7. 6 14. 8 16. 5 14. 8 10. 3 16. 2 45 82. 9 35. 4 69. 5 2008 1 quarter 9. 6 17. 5 13. 2 16 9. 9 15. 9 10. 7 11. 2 6. 32. 8 11. 7 14. 5 2008 2 quarter Wholesale/Retail Import and export trade Restaurants Hotels Transport Storage Communications Banking Financing (except banking) Insurance Real estate Business services 5. 6 6. 8 10. 6 6 22. 1 17. 8 10. 4 5. 1 10. 9 14. 3 16 16 7. 9 7. 3 10. 2 9. 5 13. 7 10. 6 10. 2 0. 8 19. 5 47. 9 21. 3 -0. 4 10. 4 12. 8 8 13. 4 15. 2 10. 8 16 10 38. 3 68. 8 28. 8 39. 8 14. 1 14. 4 14. 6 15. 3 9. 6 11 3. 5 13. 5 -6. 8 4. 7 8. 3 10 Tourism 4. 9 19. 6 13. 2 11. 8 14 11. 5 10. 3 Computer and 12. 9 14 18. 7 18. 9 25. 4 14. 14 information services Note: Data is from Hong Kong Annual Digest of Statistics (2008 Edition) edited by Hong Kong Census and Statistics Department.  ·812 · Proceedings of the 7th Inte rnational Conference on Innovation Management Table 2 shows the revenue changes of the Hong Kong’s service industry from the 1997 Asian financial crisis. In the 1997 Asian financial crisis and the subsequent 2003 epidemic of SARS, Hong Kong’s service industry was particularly hard hit. Until 2006, the industry revenue was generally restored to the level of 97. Finance, insurance, transport, trade and other business incurred the largest loss. In February 2007, the U. S. sub-loan crisis happened, and the Lehman bank filed for bankruptcy in September 2008. The U. S. financial crisis intensified and developed into a global financial crisis. From the second half of 2008, the global financial crisis began to influence Hong Kong economy. This performance is particularly evident in the service industry. Hong Kong’s financial industry has been most affected. From Table 3 it can be seen that Banking and financial services industries are in the most affected after the financial crisis. There is a rapid decline in industry revenue. In the second quarter of 2008, banking industry even has the first negative growth since the past few years. At the end of the third quarter, because a lot of major financial institutions in the United States had been threatened with a bankruptcy, the global financial crisis became even more serious. The panic selling appeared in many countries’ stock market, Hong Kong was no exception. Hong Kong’s Hang Seng index plummeted by 15% in September, and fall 22% in October. The normal operation of Hong Kong’s capital markets has been seriously affected. The growth of other financial related industries, such as insurance, real estate and business services, had a slowed down significantly from the beginning of the second quarter of 2008. Import and export trade and related industries sectors have been affected in different degrees. The merchandise exports slowed down in the third quarter and only had a small increase. Even so, this was the worst performance since the first quarter of 2002. With the increase of global financial crisis, exports to other markets also had different degrees of slowing down. As a result, the growth of related industries, such as business service, trade service, transportation and storage service also slowed down slightly. Exports of services had maintained a steady increase in the financial crisis, but the growth rate was also smaller than the second quarter. The growth of tourism also had signs of deceleration and affect the growth of related industry, such as transportation, hotels, catering services, the number of visitors from long distance market decrease a lot, particularly the tourists from Europe and the United States. To face the challenge of financial crisis, the SAR Government has been actively responding well to prevent the spread of financial risks. From the beginning of the sub-loan crisis in the United States, in order to ensure stability of the financial system, the Hong Kong Monetary Authority introduced a number of measures to alleviate the pressure on banks and provide necessary assistance to the banks. Securities and Futures Commission and the Insurance Supervisory Commission also had made action to strengthen the protection of investors and policyholders. At the same time, most Hong Kong’s local financial institutions’ participation in directly investment to the US sub-loan is limited in small scale. The local banking system remains steadily without be directly effected by the sub-loan crisis. Benefit from the economic development of the Mainland, Hong Kong’s service industries is also faced with new opportunities in the global financial crisis. For example, supported by the growth of trade in the Mainland, offshore trade growth was still significant. Although 2008 is the â€Å"Olympic Year†, but the mainland tourists to Hong Kong remained a high-speed growth. In the third quarter of 2008, the Mainland tourists to Hong Kong wad still higher than last year, an increase of 9. 4%. Individual Visit Scheme is one of the bright spots; the visitors in accordance with this scheme had a further rise in the third quarter, the ratio wad 14. 5%. These factors effectively guaranteed the smooth operation of Hong Kong’s service industries. At the same time, the ten naturalization industry plan in the mainland had already been introduced. The mainland accelerated the pace of industrial upgrading and began to support the development of high-tech industry. These policies provide a good environment for the Hong Kong companies in mainland to upgrade their technological level and achieve their own industrial upgrading. Based on the above analysis, the challenges faced by Hong Kong’s economic in the financial crisis can be summarized into the following three aspects: (1)financial sector’s profits decline a lot, related sector’s services business reduces. 2) The trade and service market in Western countries shrink. 3 Hong Kong Company in mainland operates difficultly. Hong Kong economy is facing the opportunity for: the steady development of the Mainland economy and the acceleration of the industrial upgrading. Therefore, in order to face the challenge of the financial crisis, it is important for Hong Kong service companies to expand business in the Mainland, and to Hong Kong companies in mainland to enh ance the productivity. Proceedings of the 7th International Conference on Innovation Management  ·813 · 4 Conclusions Through the above analysis, this paper can be drawn the following conclusions: (1) The a major problem of Hong Kong economy is decline in financial sector profits and trade volume with Western developed countries. (2)The expansion of demand of the Mainland market is the most important opportunity for Hong Kong’s economic development. (3) Hong Kong economy has great demands for information technology, electrical and electronic technologies, manufacturing technology. To ensure sustainable development of Hong Kong economy, it is very important to promote scientific and technological development. References [1] Yang Xue. The Analysis of the Scientific and Technological Needs Based on Micro-macro System[J]. Social Science Frontier, 2008, (10): 241(In Chinese) [2] Guo Kasha, Wang Wenlong. Science and Technology Needs Analysis of Chinese High-Tech Industry[J]. Economic Review, 2004, (8):198(In Chinese) [3] Wu Jiapei, Wang Changsheng. Science and Technology Needs Analysis of the New Road to Industrialization[J]. Science Technology and Economy, 2005, (4): 4(In Chinese) [4] Li Jianhua, Cheng Baoying, Yang Xue. Analysis on Demand of Science and Technology Effected by Informatization During New Industrialization[J]. Information Science, 2004, (8): 903(In Chinese) How to cite Analysis of Hong Kong Economy During Financial Crisis, Papers Analysis of Hong Kong Economy During Financial Crisis Free Essays string(167) " of the goods produced in the mainland of China through the outward processing arrangement were sent back to Hong Kong and re-exported to other countries/territories\."  ·808 · Proceedings of the 7th International Conference on Innovation Management An Analysis of the Hong Kong Economy after the Financial Crisis Cao Hongliu School of Management, Guangdong University of Technology, Guangdong, P. R. China, 510520 (E-mail: hongliucao@126. We will write a custom essay sample on Analysis of Hong Kong Economy During Financial Crisis or any similar topic only for you Order Now com) Abstract This paper analyzes the current economic development and the status of leading industries in Hong Kong. It shows that Hong Kong economy, which is mainly comprised of the service industry in particular, facing with both opportunities and challenges after the financial crisis. Hong Kong economy has a wide range of needs in information technology, electrical and electronic technology, and manufacturing technology. Development in these areas has great significance to ensure sustained development of Hong Kong economy. Key words Hong Kong economy status; Leading industry; Service industry 1 Introduction Hong Kong’s a small and open economy system and international financial center, its economic development face many new challenges because of the impact of the global financial crisis. Therefore, a comprehensive analysis of the Hong Kong’s economic development and their leading industry status becomes an important issue. 2 Overview of Hong Kong Economy 2. 1 The services sector is a leading industry in Hong Kong From Table 1, we can see that the services industry is a leading industry of Hong Kong economy. During the decade from 1997 to 2006, services sector in the Hong Kong economy has gained greater prominence. This change has already been reflected in the share of contribution of the services sector to the local GDP. The contribution of the services sector to GDP increased from 85. 9% in 1997 to 91. 2% in 2006. Based on the industry definition of Hong Kong Census and Statistics Department, The services sector includes wholesale, retail and import and export trades, restaurants and hotels; transport, storage and communications; financing, insurance, real estate and business services; and community, social and personal services. Table 1 Gross Domestic Product (GDP) by Economic Activity (at Current Prices) GDP by Economic Activity(2004-2007) 2004 2005 2006 2007 Economic activity Agriculture and fishing Mining and quarrying Manufacturing Electricity, gas and water Construction GDP 886 72 44455 39726 40376 ratio 0. 1 * 3. 6 3. 2 3. 2 GDP 847 100 45547 39924 38538 ratio 0. 1 * 3. 4 3 2. 9 GDP 849 93 45761 40364 38688 ratio 0. 1 * 3. 2 2. 8 2. 7 GDP 895 114 39282 39426 40154 ratio 0. 1 * 2. 5 2. 5 2. 6 Services 1119304 89. 9 1207873 90. 6 1297545 91. 2 1429293 92. 3 Note: Data is from Hong Kong Annual Digest of Statistics (2004-2008 Edition) edited by Hong Kong Census and Statistics Department. Data unit is in million terms and ratio unit is %. Besides, * represents the comparison had less than 0. 05% is in the total economy The services sector becomes the principal source of employment. The employment share of the services sector in total employment has increased moderately over the past decade, from 79. 8% in 1997 to 86. 6% in 2007. In 2007, the services sector as a whole engaged 3. 03 million persons out of the 3. 5 million overall employments. The services sector plays a significant role in supporting the growth of our external trade. In 2007, the value of exports of services reached $652 billion, representing an average annual growth rate of Proceedings of the 7th International Conference on Innovation Management  ·809 · 8. 6% over 1997. In 2007, merchant and other trade-related services was the most important major service group, contributing 30. 9% to the value of total exports of services. It was followed by transportation services and travel services, contributing 28. 6% and 16. 5% respectively to the value of total exports of services in 2007. In 1997, the respective percentage shares of these three major service groups in the value of total exports of services were 25. 6%, 30. % and 20. 8%. 2. 2 The structure of Hong Kong’s services industry sector Among the economic activities in the services sector, wholesale, retail and import and export trades, restaurants and hotels together contributed 27. 9% of the GDP in 2006, followed by financing, insurance, real estate and business services (25. 0%), community, social and personal services (18. 0%) and transport, storage and communications (9. 6%). Among them , financial services, trading, tourism and professional services are key industries in the Hong Kong economy. They have been the driving force of Hong Kong’s economic growth, providing impetus to growth of other sectors and creating employment. (1) Import and export trade . The import and export trade is the most important industries in Hong Kong’s service industry, has been playing an important role in the development of Hong Kong economy. The import and export trade produced a net output of HK$305. 1 billion in 2006, representing an increase of 39% over 1997. The ratio is the highest among all service industry. In 2007, there were 98 000 import and export trading establishments in Hong Kong, with 520 000 persons. At the same time, import and export trade sector is also directly promoting the development of other industries, such as logistics, transportation, business services and other services. Hong Kong’s import and export trade, including the visible trade and invisible trade two parts. The visible trade refers to the traditional commodity trade. In 2007, the value of Hong Kong imported and exported goods was $5,556 billion, representing an increase of 9. 8% compared to 2006. Hong Kong’s total exports of goods (comprising domestic exports and re-exports) in 2007 amounted to $2,688 billion, or increased by 9. % when compared with 2006. The value of imports increased by 10. 3% to $2,868 billion in 2007. With the value of total exports being less than that of imports, a merchandise trade deficit of $180 billion was recorded in 2007. In the import and export trade, the largest proportion of re-exports. This was largely attributable to the relocation of many local manufacturing ac tivities to the mainland of China. Quite a large amount of the goods produced in the mainland of China through the outward processing arrangement were sent back to Hong Kong and re-exported to other countries/territories. You read "Analysis of Hong Kong Economy During Financial Crisis" in category "Essay examples" During 1997 to 2007, the value of re-exports increased by 107%, while a decline of 48% was observed in the value of domestic exports. In 2007 the re-export trade to the mainland continued to grow rapidly. The invisible trade services are export and import trade of commercial services and financial services. While these services could be exported or imported by the import/export firms or companies in other sectors, most of the merchant and other trade-related services were exported or imported by import/export firms . In 2007, Hong Kong’s exports and imports of services valued at $652 billion and $322 billion respectively. Compared to 2006, exports and imports of services increased by 15. 4% and 11. 7% respectively. Net exports of services in 2007 amounted to $330 billion, this makes Hong Kong’s overall trade surplus of $150 billion. (2) Finance. Hong Kong is recognized as an international financial center, many multinational banks and financial institutions gathered here. The financial business is classified in detail, covering all aspects of the financial industry. Hong Kong three-tier system of deposit-taking institutions, namely licensed banks, restricted licensed banks and deposit-taking companies, known collectively as the authorized institutions. At the end of 2007, the number of authorized institutions stood at 200, comprising 142 licensed banks, 29 restricted license banks and 29 deposit-taking companies. 68 of them were incorporated in Hong Kong and 132 were incorporated outside Hong Kong. In addition, there were 79 representative offices of foreign banks coming from 27 economies/regions. As at end December 2007, 152 of the largest 500 banks in the world had a presence in Hong Kong. The value added generated by the banking industry amounted to $136. 5 billion, or 9. 6% of Hong Kong’s Gross Domestic Product (GDP) in 2006, representing an increase of 41. % compared with 1997. The development of the banking sector also promotes the development of other financial industries. In 2007, some 2 940 establishments and about 32 400 persons were engaged in the business. These included stock and share companies; commodity futures, gold bullion and foreign exchange brokers/dealers; stock, bullion and commodity exchanges; fund ma nagement companies; investment advisory companies; and firms providing other various financial services. The financial markets and asset management industry generated value added of about $59. billion, contributing to 4. 1% of Hong Kong’s GDP in 2006.  ·810 · Proceedings of the 7th International Conference on Innovation Management Hong Kong is also the Securities and Exchange Center and an important place for the mainland enterprises to raise funds. At the end of 2007, 1 048 companies were listed on the Main Board of the Hong Kong Exchanges and Clearing Limited (HKEx), with a total market capitalization of $20,536 billion. Despite an increase of only 7. 5% in the number of listed companies, market capitalization was observed to rise 55. 0% over 2006. Since July 1993 when the first Chinese state owned company was listed on the HKEx through issuance of H shares, the role of Hong Kong as a major fund-raising centre for the mainland of China had become increasingly important. By the end of 2007, there were 146 H shares listed on the HKEx, with market capitalization of $5,080 billion. In addition, there were also 93 â€Å"Red Chips† companies and 200 private enterprises listed on HKEx. Hong Kong is one of the most active and liberal debt markets and a leading asset management centre in Asia. (3) Tourism . In 2007, 51 900 persons were engaged in industries closely related o tourism, such as hotels and travel agents and 315 300 persons in industries partly related to tourism such as restaurants, retailers, transport operators and other service providers serving visitors. In terms of economic contribution, inbound tourism and outbound tourism together generated $45. 3 billion value added and 176 300 job opportunities in 2006, or 3 . 2% of total GDP and 5. 2% of total employment of Hong Kong respectively. The number of incoming visitors in 2007 reached 28. 2 million, increased by 11. 6% as compared with 25. 3 million in 2006 and set the highest record for visitor arrivals in history. The mainland of China remained the major source market of visitors to Hong Kong since 1994. Visitor arrivals from the mainland of China reached 15. 5 million in 2007, accounted for 55. 0% of the total visitor arrivals, followed by South and Southeast Asia (10. 3%) and Taiwan (7. 9%). In addition, Hong Kong is Asia’s major trade exhibition and business conference center. A total of 218 conventions and 78 exhibitions with international participation were held in Hong Kong in 2006. (4) Professional service . The professional service is Hong Kong’s fourth-largest service industry. The professional services industry generated $40 billion of value added, or 2. 8% of Hong Kong’s Gross Domestic Product (GDP), in 2006 and provided job opportunities for about 106 000 persons in 2007. In 2007, there were about 13 500 professional services establishments, including 3 900 accounting, auditing and bookkeeping firms, 1 800 solicitor and barrister firms, 3 300 architectural, surveying and engineering firms and some 4 500 management consultant firms. The business receipts of professional services industry increased by 10. 7% in 2007 over a year earlier. The development of professional services industry over the past decade was quite remarkable. Number of establishments and persons engaged increased by 35% and 23% respectively between 1997 and 2007. During the same period, the total number of registered professionals also increased remarkably, with certified public accountants increasing at the fastest rate of 7. 3% per year on average. 2. 3 Manufacturing company is the support for the Hong Kong service industry In this paper, the Hong Kong Manufacturing Company refers specifically to the Hong Kong manufacturing companies in the mainland. The rapid expansion of Hong Kong’s service industries in the past two decades benefited from the development of the Hong Kong Manufacturing Company and the sub-contracting business model. In the late 80’s, under the pressure of high land prices, high rents, high labor costs, a large number of Hong Kong manufacturers shifted their production to the Mainland, where the land and labor costs were relatively low, in particular the Pearl River Delta in Guangdong Province. And because of the changes in the business, many original manufacturing companies become the service company. These companies transferred their manufacturing factories to the Mainland, and kept the headquarters and other high value-added services such as marketing, order processing, material procurement, design, packaging, logistics business in Hong Kong. This business model is known as â€Å"shop in front and factory in back† mode. At the same time, in order to adapt to the changes in international markets and increase exports, many traditional trading companies, set up manufacturing factories in mainland, and formed a sub-contracting operation mode. In the sub-contractors mode, products manufactured in the mainland branch companies, headquarters in Hong Kong focused its efforts on trade, market and management. This mode of operation combined the mainland companies’ low-cost production advantage and the Hong Kong trading companies’ familiar with the international market advantage together, promoted the expeditions of business of Hong Kong trade companies and improved their production efficiency. This production mode provided a strong support to the development of Hong Kong’s service industry. The financial crisis press great operating pressure to the Hong Kong Manufacturing Company. Mostly concentrated in the Pearl River Delta region, the types of these companies are sound equipment, electrical appliances, toys, clothing, footwear and other labor-intensive industries. The development of these enterprises is based on low labor and land inputs, production technology is very low. With the Proceedings of the 7th International Conference on Innovation Management  ·811 · labor, land costs rising substantially in the Pearl River Delta region, the ompetitive advantages of the Hong Kong Manufacturing Company decreased a lot in recent years. Under the impact of the financial crisis, there has an obvious drop in experts of these labor-intensive consumer goods. Many Hong Kong Manufacturing Companies face the problem of orders reduction, profit decline, and even bankruptcy. 3 Hong Kong’s Economic Problems under the Global Financial Crisis Table 2 1997-2007 Business Receipt s Indices 1997 2002 2003 2004 2005 2006 2007 Wholesale/Retail Import and export trade Restaurants Hotels Transport Storage Communications Banking Financing (except banking) Insurance 24. 4 107. 2 104. 7 99 61. 7 157. 1 127. 1 84. 1 79. 8 38. 2 88. 3 75. 5 94. 9 73. 1 68. 8 81. 1 96. 6 86. 4 56 59. 2 85. 8 80. 4 85. 7 58. 8 69. 1 77. 4 94. 3 86. 4 65. 7 70. 5 93. 8 90. 5 94. 3 81. 9 85 90. 6 95. 1 90. 2 87. 5 86. 2 100 100 100 100 100 100 100 100 100 100 100 100 100 100 107. 4 110. 2 109. 5 113. 7 110. 6 110. 2 100. 8 119. 5 147. 9 121. 3 99. 6 119. 6 114 109. 7 120. 6 119. 1 124. 2 131. 1 122. 6 127. 8 110. 8 165. 3 249. 7 156. 2 139. 3 135. 4 135. 4 117. 1 Real estate 135. 6 71. 5 75. 9 86. 2 Business 119. 7 87. 88. 1 95. 3 services Tourism 91. 5 75. 5 70 88. 5 Computer and 53. 1 63. 7 67. 3 81. 1 information services Note: Data is from Hong Kong Annual Digest of Statistics(2008 Edition) Statistics Department. Table 3 2005 edited by Hong Kong Census and 2005-2008 the variation rati o of Business Receipts Indices 2006 2007 2007 3 quarter 9 15. 1 8. 2 15. 4 15. 7 11. 7 11. 7 9. 7 47. 7 99. 6 42. 1 27. 7 2007 4 quarter 15. 5 17. 7 7. 6 14. 8 16. 5 14. 8 10. 3 16. 2 45 82. 9 35. 4 69. 5 2008 1 quarter 9. 6 17. 5 13. 2 16 9. 9 15. 9 10. 7 11. 2 6. 32. 8 11. 7 14. 5 2008 2 quarter Wholesale/Retail Import and export trade Restaurants Hotels Transport Storage Communications Banking Financing (except banking) Insurance Real estate Business services 5. 6 6. 8 10. 6 6 22. 1 17. 8 10. 4 5. 1 10. 9 14. 3 16 16 7. 9 7. 3 10. 2 9. 5 13. 7 10. 6 10. 2 0. 8 19. 5 47. 9 21. 3 -0. 4 10. 4 12. 8 8 13. 4 15. 2 10. 8 16 10 38. 3 68. 8 28. 8 39. 8 14. 1 14. 4 14. 6 15. 3 9. 6 11 3. 5 13. 5 -6. 8 4. 7 8. 3 10 Tourism 4. 9 19. 6 13. 2 11. 8 14 11. 5 10. 3 Computer and 12. 9 14 18. 7 18. 9 25. 4 14. 14 information services Note: Data is from Hong Kong Annual Digest of Statistics (2008 Edition) edited by Hong Kong Census and Statistics Department.  ·812 · Proceedings of the 7th Inte rnational Conference on Innovation Management Table 2 shows the revenue changes of the Hong Kong’s service industry from the 1997 Asian financial crisis. In the 1997 Asian financial crisis and the subsequent 2003 epidemic of SARS, Hong Kong’s service industry was particularly hard hit. Until 2006, the industry revenue was generally restored to the level of 97. Finance, insurance, transport, trade and other business incurred the largest loss. In February 2007, the U. S. sub-loan crisis happened, and the Lehman bank filed for bankruptcy in September 2008. The U. S. financial crisis intensified and developed into a global financial crisis. From the second half of 2008, the global financial crisis began to influence Hong Kong economy. This performance is particularly evident in the service industry. Hong Kong’s financial industry has been most affected. From Table 3 it can be seen that Banking and financial services industries are in the most affected after the financial crisis. There is a rapid decline in industry revenue. In the second quarter of 2008, banking industry even has the first negative growth since the past few years. At the end of the third quarter, because a lot of major financial institutions in the United States had been threatened with a bankruptcy, the global financial crisis became even more serious. The panic selling appeared in many countries’ stock market, Hong Kong was no exception. Hong Kong’s Hang Seng index plummeted by 15% in September, and fall 22% in October. The normal operation of Hong Kong’s capital markets has been seriously affected. The growth of other financial related industries, such as insurance, real estate and business services, had a slowed down significantly from the beginning of the second quarter of 2008. Import and export trade and related industries sectors have been affected in different degrees. The merchandise exports slowed down in the third quarter and only had a small increase. Even so, this was the worst performance since the first quarter of 2002. With the increase of global financial crisis, exports to other markets also had different degrees of slowing down. As a result, the growth of related industries, such as business service, trade service, transportation and storage service also slowed down slightly. Exports of services had maintained a steady increase in the financial crisis, but the growth rate was also smaller than the second quarter. The growth of tourism also had signs of deceleration and affect the growth of related industry, such as transportation, hotels, catering services, the number of visitors from long distance market decrease a lot, particularly the tourists from Europe and the United States. To face the challenge of financial crisis, the SAR Government has been actively responding well to prevent the spread of financial risks. From the beginning of the sub-loan crisis in the United States, in order to ensure stability of the financial system, the Hong Kong Monetary Authority introduced a number of measures to alleviate the pressure on banks and provide necessary assistance to the banks. Securities and Futures Commission and the Insurance Supervisory Commission also had made action to strengthen the protection of investors and policyholders. At the same time, most Hong Kong’s local financial institutions’ participation in directly investment to the US sub-loan is limited in small scale. The local banking system remains steadily without be directly effected by the sub-loan crisis. Benefit from the economic development of the Mainland, Hong Kong’s service industries is also faced with new opportunities in the global financial crisis. For example, supported by the growth of trade in the Mainland, offshore trade growth was still significant. Although 2008 is the â€Å"Olympic Year†, but the mainland tourists to Hong Kong remained a high-speed growth. In the third quarter of 2008, the Mainland tourists to Hong Kong wad still higher than last year, an increase of 9. 4%. Individual Visit Scheme is one of the bright spots; the visitors in accordance with this scheme had a further rise in the third quarter, the ratio wad 14. 5%. These factors effectively guaranteed the smooth operation of Hong Kong’s service industries. At the same time, the ten naturalization industry plan in the mainland had already been introduced. The mainland accelerated the pace of industrial upgrading and began to support the development of high-tech industry. These policies provide a good environment for the Hong Kong companies in mainland to upgrade their technological level and achieve their own industrial upgrading. Based on the above analysis, the challenges faced by Hong Kong’s economic in the financial crisis can be summarized into the following three aspects: (1)financial sector’s profits decline a lot, related sector’s services business reduces. 2) The trade and service market in Western countries shrink. 3 Hong Kong Company in mainland operates difficultly. Hong Kong economy is facing the opportunity for: the steady development of the Mainland economy and the acceleration of the industrial upgrading. Therefore, in order to face the challenge of the financial crisis, it is important for Hong Kong service companies to expand business in the Mainland, and to Hong Kong companies in mainland to enh ance the productivity. Proceedings of the 7th International Conference on Innovation Management  ·813 · 4 Conclusions Through the above analysis, this paper can be drawn the following conclusions: (1) The a major problem of Hong Kong economy is decline in financial sector profits and trade volume with Western developed countries. (2)The expansion of demand of the Mainland market is the most important opportunity for Hong Kong’s economic development. (3) Hong Kong economy has great demands for information technology, electrical and electronic technologies, manufacturing technology. To ensure sustainable development of Hong Kong economy, it is very important to promote scientific and technological development. References [1] Yang Xue. The Analysis of the Scientific and Technological Needs Based on Micro-macro System[J]. Social Science Frontier, 2008, (10): 241(In Chinese) [2] Guo Kasha, Wang Wenlong. Science and Technology Needs Analysis of Chinese High-Tech Industry[J]. Economic Review, 2004, (8):198(In Chinese) [3] Wu Jiapei, Wang Changsheng. Science and Technology Needs Analysis of the New Road to Industrialization[J]. Science Technology and Economy, 2005, (4): 4(In Chinese) [4] Li Jianhua, Cheng Baoying, Yang Xue. Analysis on Demand of Science and Technology Effected by Informatization During New Industrialization[J]. Information Science, 2004, (8): 903(In Chinese) How to cite Analysis of Hong Kong Economy During Financial Crisis, Essay examples

Ac Computer Shop free essay sample

Chapter 1 Project Summary Introduction Computer shop business is one of the most in demand businesses here in Bulacan. Nowadays, internet cafes are really in demand because of the fast changing technology that the people embraced just like here in the Philippines. Some have their own laptops and bring it to coffee shops so that they could relax and at the same time prepare their assignments and paper works. The people today are very busy and would want to do their jobs in a beautiful and innovative environment that could satisfy their needs and lessen their stress due to busy schedule. Name of the Firm The proposed name of the firm is â€Å"AC COMPUTER SHOP†. The owner will register the firm with the Department of Trade and Industry (DTI) and Local Government Unit (LGU) concerned. The firm will be registered as single proprietorship. The business is about computer shop. Location The business will be renting a space along Hi-way near to Government Office, and schools. We will write a custom essay sample on Ac Computer Shop or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The target consumers are students, teachers, office workers, and nearby neighborhood especially those people whose relatives or loved ones are abroad. The two hundred (200) meter radius requirements as provided in the existing zoning code and other applicable rules and regulations wherein computer shops and other similar establishments and places of amusements should be put up or constructed at least two hundred (200) meters away from the church, schools, hospitals and other government offices shall be strictly complied with. Long Range Objectives of the Project The AC Computer Shop looks forward to be the most competitive shop in Bocaue and nearby towns of Bulacan. The proponent dreams of making profit and staying long in the business. For operating and establishing â€Å"AC COMPUTER SHOP†, I am having some objectives. 1. To earn profit at less investments. 2. To satisfy our customers providing best quality service at effective price. 3. Providing the service at low cost by providing the best quality at affordable price. 4. To know a fair return on the capital invested by the owner. Feasibility Criteria The following are the most important criteria by which almost every subject is being measured: 1. Raising Funds or Capital – this is the number one need of a business man in putting up a business. Whether he will produce the money by his own pocket or he will have a business loan in a bank. 2. Recognize profit from the business – the main reason of a person for going into business is profit. People tend to enter into this kind of business because of their expectation to earn money or have an income. 3. It helps the economic growth of the area – this company will give a job opportunity to the resident of bulacan. 4. Enhance the availability of the company – the company will become stable if it has the ability to compete to his competitor and ability to continue operations yet there is expected risks in a business. Market Strategies To penetrate the target market, different marketing strategies and promotions will be considered. Leaflets will be distributed and handed out to various business establishments, offices, schools, bus and jeepney stations, friends, and relatives. Games and services offered will be displayed on the store window. I will offer promo’s to attract the consumer like cheaper rate for computer rental, and membership card. I will put a tarpaulin on the place itself where my shop is standing, promoting the opening of my computer shop also one month before the opening. To let the people know that there will be a new Computer Shop on the vicinity. Lastly, I will keep developing my skills by attending seminars to improve my knowledge and to be updated in this business. Chapter 2 Market Study As the popularity of the Internet continues to grow at an exponential rate, easy and affordable access is quickly becoming a necessity of life. â€Å"AC Computer Shop† provides communities with the ability to access the Internet and share Internet experiences in a comfortable environment. People of all ages and backgrounds will come to enjoy the unique, up to date, and innovative environment that â€Å"AC Computer Shop† provides. Service Description AC Computer Shop will provide its customers with full access to the Internet and common computer software and hardware. Some of the Internet and computing services available to AC Computer Shop are listed below: †¢ Surf the web at warp speed! †¢ Chat online using Instant Messenger, Yahoo, IRC or Pal Talk. †¢ Have a video conference with a business associate, family member or friend. †¢ Experience hot Internet games like World of Warcraft, Warcraft III, Counter-Strike, Battle Realms and Dance Audition and autojam (3Mbps downstream and upstream) with outrageous ping times. Hook up your laptop to our Internet connection via Ethernet cable. You can even send a print job from your laptop to our network color laser printer. †¢ Rent AC Computer Shop for your late-night or all-night gaming party. †¢ Send and receive email using your home or business account, or set up a free email account using Yahoo, Hotmail or any other web-based service. à ¢â‚¬ ¢ Create your own greeting cards, flyers, school reports or presentations using Print Shop, Microsoft PowerPoint or Microsoft Publisher and print them in color. Download shareware programs in the blink of an eye and copy them to a CD or Zip Disk. †¢ Scan a picture using one of our self-service photo scanners and send via email. †¢ Plan your next vacation or print out driving directions. †¢ Listen to music clips and watch videos from your favorite performers with iTunes, Yahoo Music or RealVideo/RealAudio. †¢ Type resumes, letters and term papers with Microsoft Word. †¢ Send and receive faxes on AC Computer Shop’s color fax machine. †¢ Find that dream job using CareerBuilder or Monster Jobs. Check out continuously updated news, sports highlights, weather, and stock quotes. †¢ Enjoy quiet online board games from Yahoo. You can even join a Yahoo league! †¢ AC Computer Shop will also accept computer repair. Youll appreciate surfing and gaming at AC Computer Shop. It has super-fast Internet connection; youll be visiting all your favorite sites in record time. Multi-player gaming is quicker and more exciting when you and your friends are able to do battle with no lag and plenty of bonding for everyone. My friendly staff is ready to help with your computer needs. Guidelines of Business †¢ All malicious sites are blocked. †¢ We’re not allowing inserting flash drive or any storage device without the consent of the shop staff. †¢ Eating and drinking in the gaming and typing area is not allowed, they are only allow to eat and drink in the waiting area. †¢ One person for one unit to maintain orderliness. Ambiance †¢ Not too dark and bright because we want the shop more encouraging to work and play. †¢ Our computer tables have a board between users for privacy purposes. †¢ All furniture are fully furnished and labor included. Price Study It is one of the considerations of the customer that enhance them to rent computers. If the price is lower they will rent. The following services are: Amount Internet/GamesPhp. 15. 00 / hour Printing black white(short) 4. 00 (Long) 5. 00 Colored (logo size) 8. 00 Photocopying (short) 0. 75 (Long) 1. 00 Scanning 10. 00 CD burning (max. of 17 songs) 35. 00 Other services: Pay phone (for every 3 min. ) 5. 00 Computer Repair (labor) 250. 00 Factors Affecting the Market Factors that I consider while putting up my own Computer Shop: †¢ Location – picking a good spot is an advantage for me. †¢ Competition – most business – minded people think of competition as a race to charge the lower prices in order to win the customers. †¢ Software Licensing – it’s really important to have an original operating system, because pirated OS can eventually damage the system. †¢ Expected ROI – investing money in a business is a risk in my case the well tabulated if financial statement is my major concern. Internet Connection The major cost of a computer shop is the internet connection. For providing better service, the proposed project will use a high band width connection for better speed as the project is going on to provide service of video chat. It is recommended that the internet connection should be taken from the best internet service provider. Recommended Connection If the project is set up in area, where DSL Internet connection is available, it is recommended to use DSL Internet connection instead of any other Internet connection. This will improve the speed of internet, which will improve the performance of video chat and will also reduce the telephone expense. Marketing Program AC Computer Shop has three main strategies. The first strategy focuses on attracting novice Internet users, by providing a novice friendly environment, AC Computer Shop hopes to educate and train a loyal customer base. The second, and most important, strategy focuses on pulling in power Internet users. Power Internet users are extremely familiar with the Internet and its offerings. This group of customers serves an important function at AC Computer Shop. Power users have knowledge and web-browsing experience that novice Internet users find attractive and exciting. The third strategy focuses on building a social environment for AC Computer Shop customers. A social environment, that provides entertainment, will serve to attract customers that wouldnt normally think about using the Internet. Once on location at AC Computer Shop, these customers that came for the more standard entertainment offerings will realize the potential entertainment value the Internet can provide. Attract Power Internet Users AC Computer Shop’s second strategy will be focused on attracting power Internet users. Power Internet users provide an important function. AC Computer Shop plans on attracting this type of customer by: †¢ Providing the latest in computing technology. †¢ Providing scanning and printing services. †¢ Providing access to powerful software applications The large student and nearby neighborhood population will become an important part of the AC Computer Shop customer base. The student population continues to grow with the success of the educational institutes. Access to the internet, entertainment, and the upscale ambiance will attract the students. Business community is growing rapidly with the addition of new companies day by day. AC Computer Shop will provide an opportunity to local and traveling professionals to check their e-mails communications; this will be an attracting entity for the middle income group and for the residents of Bocaue as they do not have access to the internet at their living places. Market Growth The market for the services AC Computer Shop will offer is growing rapidly. The computer shop hasnt come to this area yet, but similar services are growing rapidly on a global scale. Large cities that cater to large numbers of traveling business people have been saturated with businesses offering the services AC Computer Shop will offer. Business people use the Internet services to catch up on email and communications with their family. My area supports a population that has many of the same needs and interests of this larger group. The student population continues to grow as the University grows in popularity with high-school graduates from out of state. These students tend to have money and an interest in up-scale social centers. AC Computer Shop will target these groups with the use of fliers and tarpaulin. SWOT Analysis The SWOT analysis provides us with an opportunity to examine the internal strengths and weaknesses AC Computer Shop must address. It also allows us to examine the opportunities presented to AC Computer Shop as well as potential threats. AC Computer Shop has a useful inventory of strengths that will help it succeed. These strengths include: a knowledgeable and friendly staff, modern computer hardware, and a clear vision of the market need. Strengths are valuable, but it is also important to realize the weaknesses AC Computer Shop must address. These weaknesses include: a dependence on quickly changing technology and the cost factor associated with keeping modern computer hardware. AC Computer Shop’s strengths will help it capitalize on rising opportunities. These opportunities include, but are not limited to, a growing population of daily Internet users, and the growing social bonds fostered by the new Internet communities. Threats that AC Computer Shop should be aware of include, the rapidly falling cost of Internet access, and rising local competitors. Strengths 1. Knowledgeable and friendly staff – I’ve gone to great lengths at AC Computer Shop to find people with a passion for teaching and sharing their Internet experiences. My staff is both knowledgeable and eager to please. 2. Modern equipment – Part of the AC Computer Shop experience includes access to modern computer equipment. My customers enjoy beautiful and convenient units’ displays, fast machines, and high-quality printers. 3. Up-scale ambiance – When you walk into AC Computer Shop or even sit at my waiting area, youll feel the technology. Great sound background, nice lighting that sets the mood and the whole area was clean. 4. Clear the vision of the market need – AC Computer Shop knows what it takes to build an upscale computer shop. I and my staff know the customers, the technology, and how to build the service that will bring the two together. Weaknesses 1. A dependence on quickly changing technology – AC Computer Shop is a place for people to experience the technology of the Internet. The technology that is the Internet changes rapidly. Product lifecycles are measured in weeks, not months. AC Computer Shop needs to keep up with the technology because a lot of the AC Computer Shop experience is technology. 2. Cost factor associated with keeping state-of-the-art hardware – Keeping up with the technology of the Internet is an expensive undertaking. AC Computer Shop needs to balance technology needs with the other needs of the business. One aspect of the business cant be sacrificed for the other. Opportunities 1. Growing population of daily Internet users – The importance of the Internet almost equals that of the telephone. As the population of daily Internet users increases, so will the need for the services AC Computer Shop offers. 2. Social bonds fostered by the new Internet communities – The Internet is bringing people from across the world together unlike any other communication medium. AC Computer Shop will capitalize on this social trend by providing a place for smaller and local Internet communities to meet in person. AC Computer Shop will grow some of these communities on its own by establishing chat areas and community programs. These programs will be designed to build customer loyalty Threats 1. Rapidly falling cost of Internet access – The cost of access to the Internet for home users is dropping rapidly. Internet access may become so cheap and affordable that nobody will be willing to pay for access to it. AC Computer Shop is aware of this threat and will closely monitor pricing. . Rising local competitors – Currently, AC Computer Shop is enjoying a first-mover advantage in the local computer shop market. However, additional competitors are on the horizon, and I need to be prepared for their entry into the market. Many of my programs will be designed to build customer loyalty, and it is my hope that my quality service and up-scale ambiance wonà ¢â‚¬â„¢t be easily duplicated. Market Needs As the popularity of internet continues to grow at an exponential rate, easy and affordable access is quickly becoming a necessity of life. Public wants access to the methods of communication and volumes of information now available on the internet, and access at a cost they can afford and in such a way that they are not socially, economically, and politically isolated. Market Trends More than ninety percent of my customers are youngsters and their only objective to get to these is to get enjoyment. Marketing Strategies I create some advertising strategies like I will print a thousand of fliers printed with the total cost of Php. 908. 00 (500 pieces on small fliers that cost Php. 220. 0, while the second fliers are also 500 pieces with the cost of Php. 687. 50), a month before the opening me and my staff will distribute the fliers. I will also put tarpaulin on the place itself where my shop is standing a month before the opening. It will promote the services offered and also the opening of my Computer Shop. To let the people know that there will be a new Computer Shop on the vicinity. The tarpaulin size is 64† x 10 0†and amounting Php. 497. 75. Management Strategies Maintain a focus on quality products with bottom-line growth through cost reduction and optimal performance. I also focus on technology and innovation to make sure our employees skills are up to standard with today’s mode of production. Demand Demand in Internet Services for the last five years: Table 1. 1 |Year |Quantity Demand (in peso) | |2004 |38,720 | |2005 |70,400 | |2006 |82,800 | |2007 |112,250 | |2008 |175,110 | Figure 1. 1 As you can see there is 8. 08 percent of demand in internet service in year 2004 and increase of 6. 6 percent on the next year. In 2006 there is 17. 28 percent of demand in internet service and increase of 6. 14 percent in year 2007 and in the year 2008 there’s a demand of 36. 54 percent in internet services. I will use the â€Å"Arithmetic Straight Line† method in projecting the demand for the next five years. Yc = a + Yi 1Yc = initial value Yn = final value Yi – 1 = value for past years where: a = Yn – Yc N-1 Computation: a = 175,110 – 38,720 = 34,098 5 – 1 2009 = 34,098 + 175,110 = Php. 209,208. 00 2010 = 34,098 + 209,208 = Php. 243,306. 00 2011 = 34,098 + 243,360 = Php. 277,404. 00 2012 = 34,098 + 277,404 = Php. 311,502. 00 013 = 34,098 + 311,502 = Php. 345,600. 00 Projected Demand for five years: Table 1. 2Figure 1. 2 |Year |Quantity Demand (in peso) | |2009 |209,208 | |2010 |243,306 | |2011 |277,404 | |2012 |311,502 | |2013 |345,600 | Supply Supply in the Internet Services for the last five years: Table 2. 1Figure 2. 1 |Year |Quantity Supply (in peso) | |2004 | 21,120 | |2005 |35,200 | 2006 |41,400 | |2007 |51,800 | |2008 |107,770 | As you can see there is 8. 21 percent of supply in internet service in year 2004 and increase of 5. 47 percent on the next year. In 2006 there is 16. 09 percent of supply in internet service and increase of 5. 05 percent in year 2007 and in the year 2008 there’s a supply of 41. 87 percent in internet services. I will use the â€Å"Arithmetic Straight Line† method in projecting the supply for the next five years. Yc = a + Yi 1Yc = initial value Yn = final value Yi – 1 = value for past years where: a = Yn – Yc N-1 Computation: a = 107,770 – 21,120 = 21,663 5 – 1 2009 = 21,663 + 107,770= Php. 129,433. 00 2010 = 21,663 +129,433 = Php. 151,096. 00 2011 = 21,663 + 151,096= Php. 172,759. 00 2012 = 21,663 + 172,759= Php. 194,422. 00 2013 = 21,663 + 194,422= Php. 216,085. 00 Projected Supply for five years: Table 2. 2Figure 2. 2 |Year |Quantity Supplied (in peso) | |2009 |129,433 | |2010 |151,096 | |2011 |172,759 | |2012 |194,422 | 2013 |216,085 | Demand and Supply Analysis The table and figure below will shows the projected demand and supply of AC Computer Shop for the next five years in percentage. Table 3 |Year |Percentage of Quantity |Percentage of Quantity | | |Demand |Supplied | |2009 |15. 08 |14. 98 | |2010 |17. 54 |17. 49 | |2011 |20 |20 | |2012 |22. 46 |22. 51 | |2013 |24. 92 |25. 2 | |   |100% |100% | Figure 3 The figure 3 shows the projected demand and supply of AC Computer Shop for the next five years. In y ear 2009 there is a 15. 08% of demand on internet services, that’s why AC Computer Shop needs a 14. 98% to supply the demand. In 2010 there is 17. 54% in demand and 17. 49% in supply, while in 2011 it has a 20% both in demand and in supply. And in 2012 there is 22. 46% in demand and 22. 51% in supply. For the fifth year 2013 it has a 24. 92% in demand and 25. 02% of supply. In totality, every year AC Computer Shop will increase of 2. 6% in demand and 2. 51% in supply. Chapter 3 Technical Feasibility In this chapter, I will discuss the product, the manufacturing process of my business including the plant size and production schedule. I will also discuss the machinery and equipment and also the other computer application that I will use in the business. In order for me to lessen my expenses, I purchase equipment in packages. I focus much in the hardware and software. I research on how much the hardware and software will cost me, through net surfing. The Services The following s ervices of AC Computer Shop are listed below: Gaming †¢ Typing †¢ Searching the net †¢ Printing/ Photo copying/Fax/Scanning †¢ Down loads †¢ Cd – burning †¢ Computer Repair For gaming I will install popular online games like Warcraft, Counter strike, Battle Realms, Dance Audition, and Autojam. In typing I will install original Operating System of MS Office Professional 2007 like MS Word, Excel, Power point, Access, Desktop Publishing. I will have printer, Scanner, Photocopier, and Fax Machine for the Printing, Photo copying, and faxing. AC Computer Shop will also offer other services like DVD/CD burning, Pay phone, and Computer Repair. Manufacturing Process This is the AC Computer Shop’s manufacturing process. The â€Å"AC Computer Shop† will provide the product and services to the customers, and then the customer will give income or profit to AC Computer Shop in return. The income or profit that the customer gave in return will used to provide the product and services. Plant Size and Production Schedule The â€Å"AC Computer Shop† will operate seven days a week. AC Computer Shop opens at 8:00 am ahead to the other competitors. This will lead my shop of being known. My goal is to give the needs of the students and others in early manner of time. AC Computer Shop’s Time Schedule | |Opening | |Closing |Operating hours | |Monday |8:00 AM | |11:00 PM |15 | |Tuesday |8:00 AM | |11:00 PM |15 | |Wednesday |8:00 AM | |11:00 PM |15 | |Thursday |8:00 AM | |11:00 PM |15 | |Friday |8:00 AM | |11:00 PM |15 | |Saturday |8:00 AM | |11:00 PM |15 |Sunday |8:00 AM | |11:00 PM |15 | |Total Operating Hours per week |105 | Machinery and Equipment The proposed project is going to be of 10 units of computer systems and the details of the equipment required for the project is given below: |List of Hardware: |Brand name |Description |Amount | |Package PC’s |Pentium 4 |10 units of PC w/ Complete |Php. 5,500. 00 | | | |accessories | | |Printer |Samsung SCX-4200 | 3-in-1; Laser Printer, Scanner, |4,999. 00 | | | |Copier | | |Fax Machine |Panasonic KX-FT933 |Fax Machine with Automatic Paper |5,790. 0 | | | |Cutter | | |Modem DSL |Smart Bro | |999. 00 | |Computer Application Software: | | | | |OS MS Office 2007 | | |4,999. 0 | |Anti-virus a nd Anti spy ware | | |7,200. 00 | |Game Software: | | | | |Warcraft (dota) | | |1,450. 00 | |Counter Strike | | |350. 00 | |Battle Realms | | |720. 0 | |Dance Audition | | |1,968. 00 | |Autojam | | |1,968. 00 | |Total Machinery and Equipment Cost | | |Php. 45,943. 00 | Furniture and Fixtures The project is based on Pentium-4 computer systems. Second hand systems are also available in the market at much lower prices. The reason for using the latest system is the new software coming in the market that requires more powerful systems which will provide better service to the customer. The price of computer systems varies with the introduction of new technology in the market. |Description |Quantity |Unit Price |Total Price | |Computer Cabinet |10 |250 |Php. 2,500. 00 | |Table for waiting area |1 |400 |400. 0 | |Air Conditioner |1 |6,500 |6,500. 00 | |Mono block chair |10 |230. 5 |2,305. 00 | |office chair for server |1 |745. 75 |745. 75 | |Cabinet for the supplies |1 |950 |950. 00 | |Pad Lock |2 |750 |1,500. 0 | |Total Furniture and Fixtures Cost | | |Php. 14,900. 75 | Plant Location Plant Layout â€Å"AC Computer Shop† Building and Facilities | Description |Amount | |Rent ( 2,500*12) |Php. 30000. 00 | |Construction of the Shop |3,000. 00 | |Total Building and facility Cost |Php. 33,000. 00 | Raw Materials and Supplies The material needed for the operation of the business: |Description |Price | | |Bond Paper |Php 150. 00 |(500pcs. /rim) | |CD w/ Case |13. 00 |/set | |Ball pen |48. 00 |/box (12pcs) | |Stapler |100. 0 | | |Staple wire |30. 00 | | |HP 96 Black Ink |800. 00 | | |HP 97 Tri-Color |850. 00 | | |Record Book |25. 00 | | |Fire Extinguisher 10 lbs. |3,950. 0 | | |Total Raw Materials and Supplies Cost |Php 5,966. 00 | | Utilities |Description |Monthly Cost |Total Amount (year) | |Electricity |Php. 5,000. 00 |Php. 60,000. 00 | |Water |117. 50 |1,410. 00 | |Total Utility Cost | |Php. 61,410. 0 | Waste Disposal AC Computer Shop can manage the waste disposal properly, because every Monday, Wednesday, Friday and Sunday is the schedule in collecting all the garbage in barangay Poblacion, Bocaue. |Cleaning Materials |Price | | |Broom Dust Pan |Php. 105. 00 |– replace every 5 months | |Trash Can |100. 00 | | |Feather Dust |60. 0 |– 2pcs. Good for 3 months | |Mop |250. 00 |– replace every 5 months | |Powder Soap |60. 00 |– 6pcs. Good for 2 months | |Air Freshener |175. 00 |– replace every 2 months | |Total Waste Disposal Cost |Php. 750. 00 | | Legal Requirements ? Registration with BIR ( Bureau of Internal Revenue) ? Registration of Business Name with DTI (Department of Trade and Industry) ? Barangay Clearance and Business Permit ? Mayors Permit Legal Requirements Cost |Barangay Clearance |Php 150. 00 | |Mayor’s Permit |4,000. 00 | | Business Tax |950. 00 | | Business Plate |100. 00 | | Sanitary Permit |250. 0 | | Occupational Tax |400. 00. | | Inspection Fee |500. 00 | | Filing |100. 00 | | Processing |120. 00 | | Zoning |350. 00 | | Electrical Inspection |250. 00 | | Fire Inspection |350. 0 | |BIR |300. 00 | |DTI |5,750. 00 | |Total Legal Requirement Cost | Php 13,570. 00 | Production Cost The details of production cost for the project are given below: Labor Requirements Estimated Annual Cost for Salaries and Wages |Description |Monthly Salary |Annual Salary | |Manager |Php. ,000. 00 |Php. 96,000. 00 | |Employee |4,500. 00 |54,000. 00 | |Total Salaries and Wages Cost | |Php. 150,000. 00 | * Additional fee to my employee for computer repair (labor) Php 250. 00 Requirement on Hiring an Ap plicant Applicant must be 20 years old, residence of Bocaue †¦ †¢ Resume †¢ Two valid I. D. †¢ Birth Certificate (NSO) †¢ N. B. I Clearance †¢ SSS number †¢ Vocational Graduate (computer technician) †¢ Hardworking