Modern Banking World Leading To A Financial Crisis Finance Essay - Free Essay Example

Sample details Pages: 12 Words: 3640 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? In 2007, the world was plunged in shock with revelations of the modern banking world leading to a grave financial and economic crisis. The bewilderment was actually triggered because of those dubious subprime loans leading to finance becoming malevolently complex and opaque. More precisely, the banking system had created numerous complicated, cross-border financial chains. Although these chains were believed to make the system more safe and efficient during the booming times but when the disaster struck, new risks were produced which took the market by storm. But the question arises that can the lessons learnt from this financial downturn be transposed to the worldwide manufacturing sector? This is the same question which is hanging over the markets as the long term impacts of the Japanese earthquake and tsunami are being assessed. In the last couple of decades due to the emergence of countries like China on the global economic stage, the role played by Japa n has shrunk. But still Japan is playing a crucial role in some of the big manufacturing supply chains, especially in the electronics and auto sectors. Japan manufactures about 30 % of the worlds flash memory which is used in electronic cameras and smartphones and also about 15 % of the D-Ram memory which is used in PCs. Many Japanese manufacturing units are facing temporary or partial closure and this has raised concerns with the investors as to how difficult it is to maintain complex cross-border linkages in manufacturing rather than in finance. The chunk of the problem is that big manufacturing organizations have their supply chains spanning across multiple borders. Taking the example of the  ¿Ãƒâ€šÃ‚ ½iPhone ¿Ãƒâ€šÃ‚ ½ and assessing how it was manufactured and the components used reveals a magnificently complex arrangement, typical of several sectors. Manufacturing a iPhone involves 9 major companies like Samsung, Toshiba, Infineon, Broadcom, Murata, Numon yx, Cirrus Logic and others. All major suppliers and producers are located in Japan, PRC, the Republic of Korea, China, Taipei, Germany, and the US. Looking at the dizzy patchwork of supply chain of organisations spanning over various countries implies that the companies are spoilt for choice as to from where to procure. But in real, competitive cost cutting strategies have forced companies to streamline their operations to such an extent that if something goes wrong with even one of the linkages in the cross-border supply chain, it can lead to the break-down of the entire system. Also bottlenecks and vulnerabilities occur when such companies streamline their operations in this way. These strategies often fail to overlook the macroscopic effects again a prevailing pattern in finance. Even a small component bearing a small value when compared to the overall value of the finished product can lead to a standstill in the entire production process. For example, some years back, Eur opean car manufacturers had to halt the production in their factory lines because of problems at an Asian factory which used to supply thread for seat belts to these car manufacturers and it was their only source. There have been more than 1000 examples tracked in the last five years when companies had to face disruption in the processes because of obstacles at a factory producing a perilous component, or at a crucial transport stage. The Business Continuity Institute last year published a report containing a survey of companies which faced three-quarters of production setbacks in their supply chain in the past year or so because of unexpected issues ranging from weather to health issues to earthquakes. One quarter conveyed that the problems were getting worse. This was because the global market had become highly competitive in the recent years and hence many businesses had implemented and adopted cost-saving strategies to sustain profit margins, also including just-in-time (JIT) deliveries of important components and resources. But these strategies are becoming operational weak links, especially in extended supply chains. The corporate awareness for this problem is now slowly rising and many companies have started developing mitigation strategies to develop mitigation strategies to diversify their supply chains. But still many of the severe vulnerabilities in these chains remain unaddressed till date and are poorly understood. Hence, the uncertainty with Japan. Many analysts still are of the opinion that any knock-on supply chain disruptions have relatively limited effects. However, if several manufacturing units and factories are shut down for an extended period, the damage can be wide spread. On the other hand, such events have been a timely reminder that finance is not the only sphere of 21st century which investors evaluate. Risk-off modes in supply chain are known to a few. Japan ¿Ãƒâ€šÃ‚ ½s role in the world economy The importance of Japan on the global economic front can be seen from some of the statistics given below. As the table above depicts, the Japanese economy accounts for 9% of the global economy measured in nominal terms. However, as the growth in Japan is pretty low, when the economy expands at trend growth, the actual contribution to the global GDP is just 0.1%-points. Thus, Japan is only responsible for 3% of growth in the global economy. Comparing this with the global scenario in which the US contributes 18% and the Euro area contributing 12%. With imports of around 13% of GDP, Japan is a reasonably closed economy. The total exports to Japan from the US and the Euro area is only 3.3% and 2.3% of the total exports, respectively. The data stated above suggests that the Japanese economy is not contributing much in substantial to the global growth. Further the main scenario of the Japanese economy and its impact on the global economy is sketched and a comparison is made with the bad scenario w here Japan is suffering from a wide-scale emission of radiation hitting Tokyo post the earthquake and tsunami. Trade dynamics Japan ¿Ãƒâ€šÃ‚ ½s World Exports Break-Up Japan ¿Ãƒâ€šÃ‚ ½s India Export Break-Up Japan ¿Ãƒâ€šÃ‚ ½s India Import Break-Up The earthquake and proceeding tsunami have caused untold loss of lives in north-eastern Japan last week has resulted in an untold loss of lives and has badly crippled Japan ¿Ãƒâ€šÃ‚ ½s economy. This is now sending ripple effects throughout the supply chain of major organisations especially electronics companies. As a primary nuclear power plant of north-eastern Japan is not operational, the power supply in the entire region is significantly affected. TrendForce is expecting a complete power outage or limited power supply in its manufacturing units over the next two weeks even though plan ton distribution of limited power have been drafted. SUMCO and Shin-Etsu Semiconductor have been forced to shut down their production of silicon wafer fabs. Significant damage has also been caused to the production lines of both companies. Hence global players for semiconductors will now compete for materials citing the drop in silicon wafer supply. Shin-Etsu Semiconductors primarily manufactures 12-inch silicon wafers and 95% of their production is used in the semiconductor industry. Shin-Etsu Semiconductor is also a major supplier of wafer silicon to Elpida and Toshiba. The majority of Japanese semiconductor companies are still estimating the damage caused by the earthquake and tsunami. Minor injuries have been reported to some employees of Panasonic at several of its companies including Panasonic Electric Works Co., Ltd. Koriyama Factory (manufacturing electronic materials), and SANYO Electric Co., Ltd. Gunma Factory (manufacturing washer/dryers etc), AVC Networks Company Sendai Factory (manufacturing optical pickups), AVC Networks Company Fukushima Factory (manufacturing digit al cameras). Damages to equipment, production lines and building were also reported. The sites of Texas Instruments (TI) in Miho and Aizu were also affected by the initial earthquake. No injuries to employees at these sites were reported and their fourth site in Hiji was not impacted. Spot price quotes halted for DRAMs Japans earthquake and tsunami has also impacted the DRAM market. Spot price information is not being provided by Samsung and Hynix, according to DRAMeXchange. In Taiwan, spot price quoting has been stopped for DRAM by PSC and Nanya Tech. These firms are waiting to listen to more information on the current situation and then will make necessary adjustments. The spot prices in China have started increasing because of the impact on the expected supply according to DRAMeXchange. Although there has been only a minor setback to Toshiba ¿Ãƒâ€šÃ‚ ½s NAND production line, the impact of the earthquake and tsunami on their supplies, traffic and Japan ¿Ãƒâ€šÃ‚ ½s construction is enormous. Toshiba has a 12-inch plant producing logic and consumer ICs in Iwate Prefecture. As this facility is very close to the epicentre of the earthquake, the production has been impacted severely while on the other hand, the production facility in Kansai has noted minor damages. Fab3 and Fab4 Flash memory plants of Toshiba and SanDisk are located approximately 800 miles away from the epicentre of the earthquake and hence there is no serious damage. The official statement from SanDisk stated that no employees were hurt but production did halt temporarily. Majority of the solar cell manufacturers like Sanyo, Sharp, Kyocera etc are located in the Kanzai region which has a minimal impact cause of the earthquake as reported by EnergyTrend which is a green industry research subsidiary of TrendForce. Sony ¿Ãƒâ€šÃ‚ ½s production units manufacturing Blu-ray discs, magnetic heads and batteries are located in north-east Japan and faced power loss problems. At the time of the quake, all employees had to be evacuated. In the aftermath, Korean and Taiwanese battery manufacturers saw increased orders as there was temporary but significant impact on the supply. The shutdown of Seiko ¿Ãƒâ€šÃ‚ ½s plant in Japan has had the biggest impact on the overall supply and this could see Korean and Taiwanese battery protection IC manufacturers benefit largely. Considering upstream material suppliers, the main casualties are Mitsubishi Chemical and Seiko. The anode powder manufactured by Mitsubishi Chemical is used in the Japanese market mainly for NB applications. Many NB brands, especially Apple ¿Ãƒâ€šÃ‚ ½s new Ipad 2 use battery protection IC manufactured by Seiko. Also impacted was the battery cell manufacturing unit of Sony. These cells are required for NB applications and power tools. The shutdown of battery supply for NB applications is around 2 weeks and the impact is 8M. But considering the existing inventory w ith Sony and as the battery pack is assembled in China there is a chance that not much loss will be caused. If Sony can manage to restart its production within 2 weeks with successful shipment, there will be minimal impact. The suppliers of LCD panels are located in the Kansai region and hence are not greatly impacted. But the impact of the earthquake and tsunami in the Kanto area of Japan has led to temporary shutdown of the PLD (origin IPS) six-generation fab supplies to Panasonic for TFT-LCD TV panels. This is a closed supply chain and the unit is located in Mobara. Another player in this industry is Corning Japan. It ¿Ãƒâ€šÃ‚ ½s plant at Kakegawa, Shizuoka has capacity which accounts for 70% of the total capacity of Corning japan but it hasn ¿Ãƒâ€šÃ‚ ½t faced much equipment damages. Also the leading LED manufacturers of Japan namely Toyoda Gosei and Nichia have their facilities far off from the disaster area in north-east Japan but LED production line of Chiba m ay be impacted. According LEDinside, there is not much impact on this industry. Globalisation, intense business competition, sustainability etc. have leveraged hidden cost embedded in efficiency for companies. Companies aim to lower operating costs by sourcing raw materials and production inputs from overseas. At the same time, many companies started taking efforts for simplifying and streamlining their supply chain involving systematic consolidation of suppliers through re-engineering initiatives and thus leading to administrative efficiency and cost reduction. Companies can negotiate for greater volume discounts and better service quality by reducing the number of transactions through consolidation. On the other hand, there is a hidden cost situated behind these benefits of global sourcing and supplier consolidation and that is increased exposure to the risk of supply-chain disruption. The potential risks that come along are increased distance and more complex linkages. Also the risk of failure is concentrated among a few suppliers. The supply chain of companies needs to be insulated from disruptions so that full advantage can be taken of these flexible, efficient and predictable strategies. The paper also caters to one of the most important categories of supply chain risks and that is the risk to the physical assets along the entire supply chain. These are the risks that can be caused due to the impact of natural disasters such as hurricanes, earthquakes, floods as well as non-natural adversities such as fires or explosions; and poor physical asset management, both at company-owned facilities and at partner ¿Ãƒâ€šÃ‚ ½s facilities. These risks have come up and have assumed a significant impact in wake of the recent disasters that have taken the companies ¿Ãƒâ€šÃ‚ ½ supply chains by storm. The recent examples of catastrophic events like Hurricane Katrina and Rita, earthquakes and flooding in China, tsunamis in Southeast Asia etc. hav e spread their destructive impact not only on humans, families or communities but also on the global economy. THE VIEW FROM FINANCE global sourcing vs. risk exposure A survey was conducted to find out how much do companies ¿Ãƒâ€šÃ‚ ½ supply chain depends on foreign sourcing activities, especially after the global economic recession. The current sourcing practices and policies were evaluated as to whether their current activities regarding sourcing would increase, decrease or remain at the same level over the next couple of years. The findings were that a lot of companies-almost more than two thirds (67%) of the companies are sourcing inputs for production from abroad and such trade practices are being encouraged to cut down on costs. Another finding is that a big majority of companies surveyed are expecting the overseas sourcing activities to increase of the next couple of years. The research survey also brought forward the fact that finance personnel find a conne ction between overseas sourcing and risk exposure. 39% of the companies surveyed agreed to the fact that their overseas sourcing policies and strategies increase physical risks along the supply chain. Another finding was that just-in-time (JIT) inventory and lean manufacturing practices which are proven to optimize the supply chain were less common at most of the companies. Also nearly two-thirds of companies surveyed (66%) suggested lean manufacturing practices lead to increased risks while 64% said just-in-time (JIT) inventory practices lead to increased risks. Another aspect of the research was that physical and natural hazards which include natural disasters and physical failures at companies ¿Ãƒâ€šÃ‚ ½ facilities have had a negative impact on the companies ¿Ãƒâ€šÃ‚ ½ performance. Chalking out the reasons for supply chain performance shortfalls, 55% believed it is due to logistics disruptions and 54% are of the opinion that it is due to underperformance of the s upply chain partners. On the whole a significant proportion of surveyed companies (45%) believed that natural catastrophes negatively affected performance, and an almost equal number of companies (42%) reported that physical asset failures at companies ¿Ãƒâ€šÃ‚ ½ facilities were the cause of negative performance. The effect on India Auto: Maruti Suzuki * Supply constraints of components and currency risk can cause impact. * Since Suzuki is a partner and it is based in Japan the impacts will be more on both grounds as compared to other players in the sector. * Credit Risk is a big factor for Maruti Suzuki. 1% change in Japanese Yen (JPY) will impacts the Maruti ¿Ãƒâ€šÃ‚ ½s Fiscal Year  ¿Ãƒâ€šÃ‚ ½12 EBIDTA and EPS by 2.7% and 2.6% respectively. Also the company could face tighter margins as it ¿Ãƒâ€šÃ‚ ½s JPY currency risk is not hedged. * Maruti Suzuki imports steel and other components like injectors, sensors etc from Japan (directly or indirectly via vendors). Thus shortage of supplies can lead to negative performance and temporary halt of production line. * Steel imports can have an alternative by importing it from other locations but problem will be created at the current juncture because of disruptions in the supply chain and negotiating with alternative suppliers. IT: Wipro and Infosys * Wipro and Infosys which are among the tier 1 companies in the IT sector derive approximately 1-1.5% of their revenues from Japan whereas the share of revenues of TCS is less than 1%. * The clientele of these companies in Japan consists of global players majorly located in and around Tokyo. * Nucleus Software which is among the small or mid-tier segment accumulates Similarly, amongst small/mid-tier companies, Nucleus Software derives approximately 33-34% of revenues from Japan. Nucleus gets services revenue from clients such as Shinshei bank and revenue from selling od IT software products like FinnOne and [email   protected]/* */ Co Name Metals and Mining: * The recent earthquake and tsunami that devastated a portion of North Eastern Japan is likely to have negligible impact on the Indian metals industry. * Global steel industry however, can see some positive impact due to production cuts, estimated to the tune of 10- 15 million tonnes by major Japanese steel mills. * Price of iron ore and coking coal on the other hand, may see some weakness due to lower demand in the near term, as Japan contributes ~25% and ~13% to the global seaborne trade of coking coal and iron ore respectively. Imports of iron and coking coal by Japan million tonnes * The raw material imports of Japan from India constitute of iron ore only. * Sesa Goa and NMDC export just approximately 5% of their total produce to Japan. India ¿Ãƒâ€šÃ‚ ½s iron ore exports to Japan Oil Gas: Reliance Industries, the prime beneficiary * Japan imports approximately 4.4mnbpd crude oil which mak es it the third largest consumer of crude oil having 5.1% share of the total world consumption. * Middle East countries are the major exporters of crude oil. * Because of the earthquake and the tsunami Japan had to shut down five refineries which had a capacity of producing 1.2 million barrel per day (mnbpd) which is approximately equal to 27% of Japan ¿Ãƒâ€šÃ‚ ½s daily requirement. * The prime beneficiary of this situation is Reliance Industries as it exports to many Asian countries.S * The shutdown of Japan ¿Ãƒâ€šÃ‚ ½s refineries has led to a large demand for petroleum products. * Product categories in the light and middle distillate segment will lead to higher Gross Refining Margin (GRM) for Reliance Industries. Conclusion: Beyond the saddening loss of human lives, Japanese earthquake and tsunami have brought forward the fact that how complex the global supply chain is and the companies are interdependent on complicated linkages in the productio n systems which make the organizations efficient and their process highly optimized incurring low costs. The raw materials and input components are procured from manufacturers based in different countries that span across borders. Such catastrophes are a test challenging the robustness of their supply chain. The ripples of Japan earthquake and tsunami are being felt right from Apple Incs new iPad to Chevrolet pick-ups and several of the worlds airplane kitchens because of the devastating negative impact on the global manufacturing supply chain. The supplies of everything from semiconductors to car components have been threatened because of the earthquake, tsunami and the nuclear crisis and manufacturers all over the globe are now feeling the pinch. Some areas where the impact of the earthquake wasn ¿Ãƒâ€šÃ‚ ½t large have factories in operational mode but shortfall in supplies of fuel and raw material, power outages, ruptured logistics are causing delay in production and he nce adversely affecting the delivery of products to respective customers. Honda Motor Co had to extend the halt of its production facility in Japan, where one-fifth of its total production is produced. There were even reports in the US markets that Honda won ¿Ãƒâ€šÃ‚ ½t be able to resume production of vehicles until May; such devastating was the impact. The role played by Japan in the global electronics supply chain is so crucial that major concern of trade and economics is aligned to this sector. Japans electronic parts ¿Ãƒâ€šÃ‚ ½ exports were about 7.2 trillion yen last year. If the crisis in Japan prolongs, the second quarter is going to see a shortage of components for all electronics manufacturing companies over the globe. Japan caters to 57 % of the worlds semiconductor wafers. The much awaited Apple iPad 2 was announced with a lot of fanfare but now is a victim of the shortage of semiconductor parts. Toshiba caters to 35% of the production of flash memory in the world. Its clientele include brands like Apples iPad and other smartphone manufacturers. As a result of this other chip makers of DRAM memory in Korea like Samsung and Hynix, Taiwanese company Powerchip etc. have stopped quoting of prices. Analysts at Goldman Sachs are warning of potential bottlenecks in the silicon wafers supply chain. Major deficits are also expected in the conductive film supplies used in LCD circuits and resin used to connect chips to boards. Taking the case of Shin-Etsu Handotai, which is the world leader in production of silicon wafers and ingots. These are used in the manufacturing of semiconductors. Its Shirakawa plant is very close to the epicentre of the earthquake in Fukushima and also close to the some nuclear power plants. The nuclear crisis is hovering and the plant contributes about 22% of the world ¿Ãƒâ€šÃ‚ ½s supply of silicon wafers. Power outages have taken a toll on the production affecting its global supply. Japan is responsible fo r 70% of the world ¿Ãƒâ€šÃ‚ ½s supply of anisotropic conductive film. It is a vital component used for the manufacturing of LCD flat panel displays, smartphones, notebook computers and tablets. According to reports dated March 16th, booking orders has been stopped by suppliers. Although a majority of the world supply of LCD panels comes from Korea, China and Taiwan. Sony ¿Ãƒâ€šÃ‚ ½s plants manufacturing lithium ion battery are around the disaster affected area of Fukushima as well as some of its suppliers. This as a result will cause a halt in the production of notebook computers. Automobile manufacturers in Japan also have some of their units in the disaster affected area. Even facilities which are located away from the epicentre and the disaster affected area are facing problems due to power outages. Damages to the suppliers and subcontractors of parts and components have thus led to halt in the operations of major manufacturers not only in Japan but all around the world. Don’t waste time! Our writers will create an original "Modern Banking World Leading To A Financial Crisis Finance Essay" essay for you Create order

Gang Life By Robert J. Duran Essay - 974 Words

The book, Gang Life in Two Cities by Robert J. Durà ¡n to put simply is about the gang life in Denver, CO and Ogden, UT. Durà ¡n wrote this book to share his research findings. When Durà ¡n had to move to Huntsville, UT (but went to school in Ogden) he found himself immersed in an area where gangs were becoming popular. Durà ¡n, an ex-gang member himself was curious on how and why gangs operate. He found this research important, because he saw firsthand how society had a role in the formation of gangs. Duran felt that it needed to be brought to light what he witnessed while being a gang member himself and when he conducted his research. This book was different than other literature that had been produced, because Duran was able to get closer and inspect the deeper characteristics of gang life and gang members themselves. This is something that other researchers in the field are typically not able to accomplish. He took on the perspective of investigating what role racial o ppression had with the development of gangs. His perspective and his ex-gang membership background allowed him to be more trusted by all the gang members that he interviewed for this research. As mentioned previously Duran did conduct interviews as part of his data collection, but this wasn’t his full methodology. Duran used a multimethodological approach termed ethnography. Ethnography method allowed Duran to gather historical analysis, non-participant and participant observation, semi-structuredShow MoreRelatedPoverty and Crime (Sociology)1600 Words   |  7 PagesAshley Duran Sociology 1101 August 9, 2010 Poverty and Crime A social issue that has always intrigued me was crime (petty crime, violent crime, etc) in impoverished urban areas and the social and economic impact that crime causes in these areas. Before conducting my research into this topic, I have always pondered why crime and poverty are so closely related. Are these two so closely linked solely because of the lack of income in the area? Or are there some

Kolb Model Free Essays

string(102) " 700 acres and another part of 300 acres which was kept for the ancillary production for the project\." Tata Motors’ Singur Case (Nano Controversy) Introduction I have taken the case on Tata Motors Ltd. The case was all about on the Tata Nano Singur Controversy. This controversy refers to the Tata’s Nano Factory at Singur in Hooghly district in West Bengal, India. We will write a custom essay sample on Kolb Model or any similar topic only for you Order Now Since Tata Motors Started constructing the factory over there in Singur, the small place comes into the media worldwide. Tata Motors started this factory to manufacture 25000 cars firstly. The plans of Tata Motors were that Nano will come out from the factory by 2008 for rolling out the roads. Tata Motors Ltd. s the largest Indian automobile company having the revenues of USD 20 billion in 2009-10. Tata Motors is the leader in the manufacturing of commercial vehicles. It is among the top three in the passenger car and also in mid car segment. The organization stands at number four in truck manufacturing worldwide and stands at number two in bus manufacturing. The total workforce of Tata Motors worldwide is near about 24000 employees. Tata Motors established in 1945, Tata Motors is present across the India and even world wide as they have acquired the two brands of Ford Motors.The total quantity of the vehicles which rolling out on Indian roads by Tata Motors are near about 6 million. The company has its manufacturing units all across the India i. e. Jamshedpur, Pune, Lucknow, Pantnagar and Karnataka. In 2005, Tata Motors set the alliance with Fiat Motors at Ranjangaon, Maharashtra to produce bith Fiat and Tata cars. The company is also establishing the new manufacturing unit at Sanand( Gujrat). The company has a good dealership network in India. Abstract The controversy of Tata Motors was due to Land Acquisition at Singur for its Nano Project 4 years back. The Tata Motors have the dream to run a Rs. lakh car on Indian roads. In 2006, the CM of West Bengal Mr. Bhuddadeb Bhattacharjee’s vision was to make the West Bengal an industrialized state so that it can compare to other states in India in industrialization. As the land in Singur was not so fruitful, so the government had decided to give it to Tata Motors for the Nano Project, so that the state will get benefit out of it. But the opposition had the continuously eye on this issue, they do not want that the poor farmers’ land will be taken from them under the government pressure. The political factors come into the picture against this project at Singur.The opposition was playing with the emotions of the farmers. The opposition put the arguments that the land is scarce resource in the West Bengal. The opposition does not want that the project will start here and it will end up at its scheduled time. The opposition got successful in its operations for the Tata Motors and finally Supreme Court asked the Ratan Tata to chuck out their plant from the Singur. The main person behind all this was Ms. Mamta Benerjee, she was adding fuel to the fire always at the time of issue. So, at the end Tata Motors have stopped its operations and went ahead to the place in Gujrat. Comparative AnalysisThe comparative analysis can be defined in terms of issues of the case and their depth analysis from the point of view of stakeholders. It can be explain in terms of some external forces which play important role in this issue as given below: First of all in this case, legal aspects in the land acquisition by Tata at Singur come into the play. Due to globalization, most of the developing countries want to have the shift from import substitution based strategy for the land acquisition. SEZ i. e. special economic zones are the geographical regions which have the economic laws more liberal than the economic laws in the whole country.By offering the all these privileged terms from the SEZ to the company, it will attract the investment from the investors, foreign exchange, boost the employment and improving the infrastructure facilities which will help in the growth of the particular location. The same reason was here in the case also. Tata want to improve the industrialization in the West Bengal though their Nano Project. As the Nano project will be beneficial for the both parties, Tata will get the desired place for the manufacturing of the Nano and West Bengal will also benefited.In this case, the main issue was that Industry, government and agriculture comes at the crossroads. There are so many implications for the external factors which come into this picture. As CPI had won the election for the seventh consecutive time in West Bengal, CM Buddhadeb Bhattacharjee has the vision to make the West Bengal an industrialized state which will help the people to upgrade their standards. CM was very happy that government has recommended the Singur for the Nano Plant. As Ratan Tata was looking for the place where he would able to control the cost and place would be cheap so that he can provide the people the car of worth Rs. lakh. So, Ratan Tata accepts the proposal from the West Bengal government because at Singur the cost of its operation would be less and Tata will get benefited out of it. The statistical data of Hooghly district on Singur block is that 83% of the land is irrigated and crop density is 220%. The landholders in the Singur were very small. All have the land in the small proportions. There are a large number of migrant workers over there; it implies that Tata would get the cheap and easy labor over there in the Singur.On May 18, 2006, there was the announcement by the West Bengal government for the beginning of the project at Singur. Ratan Tata promise to complete the project in 2 years. The whole project was spread into 2 parts, one part having the land of 700 acres and another part of 300 acres which was kept for the ancillary production for the project. You read "Kolb Model" in category "Papers" The project has created the 10,000 direct and indirect jobs over there in Singur. On Jun 19th2006, Tata got a notification from the government under the section 9(1) of land Acquisition Act of 1894 to the affected farmers due to this project.The Act mentioned that the land acquired by Tata needed to be taken by the government/ government authorities for the public purposes, employment generation and socio economic development of the state. After some time on Jul 27, 2006 the state government sets the 6 months deadline for acquiring the land. After that this land acquisition got challenged by the Kolkata High Court. Some people in the Singur got their cheques for the compensation from the government as they protest against the government for the cheques. After that there is state wide violence in the Singur began.The monitoring protesting starts in the Singur. Ms. Mamta Banerjee took the lead for the opposition of the project. On 22th Jan, 2007 there were near about the 1000 guards arranged for Tata Motors’ plant to save it from the protesting people on the day of Bhoomi Pujan. There are the people from the all parts of the society come in the Singur to protest this movement. On 4th Feb’07, HC issued a prohibitory order under the section 144 Cr at Singur and announce that it was the only use of power and unreasonable restricted practices by the government authorities. After some days, the government asked for the file an affidavit which will show all the details for the legality of the land acquisition by the Tata Motors at Singur. Here comes the issue whether land acquire though under the two different section of land acquisition act 1894, it got directed towards the farmers who receive the compensation from the government. After messing with government, finally Tata got the approval for the plant on March, 07. The government signed an agreement to lease the 949. 5 acres to the Tata Motors for 90 years.After some time, government felt that an advocate made some mistakes and the same case got filed again, government found that only 30% of the farmers signed willingly and yet other people do not want. The state government admitted that Till April 25, 07 only Rs. 90. 35 crores have distributed and rest the people are left undistributed the money where as their land had already acquired. In the meanwhile the Nano got unveiled in Delhi’s pragati Maidan on Jan10, 08. On Jan 18, 10, Calcutta High Court sealed the land acquisition in Singur and asked the Tata to roll out the Nano without completing the project.The Chief Justice dismiss the all the 11petitions filed by the Tata. Tata has not paid the people which are CPI(M) supported. Now there are cpnditions got critical and Ratan Tata decide to roll out the project from the Singur on Oct 3, 08 due to worried about the safety concern of the Mangers and their families over there. Implications on Stakeholders The stakeholder impacts the case a lot from the point of view of their different place in the organization. The implications of all the stakeholders are given below: Tatas Prospective Investors Ancillary Units Competitor to Nano Farmers Stakeholders WB Government EmployeesMamta Banarjee Different Stakeholder Values The primary stakeholders for the Tata project were Tatas, government of west Bengal and farmers. The government plays a critical role in pulling out the project by Tatas. Mamta Banerjee played with the emotions of the Farmers by making them ignited for the opposition of this project. Every stakeholder thinks from its prospective of getting the benefit out of this problem. Talking about the farmers, as they firstly persuaded for the land acquisition but they were opposing it because due to increase in the land prices as they are demanding now the high prices for their land.As the West Bengal is a agriculture state, there is a lack of industrial ization in the West Bengal. The issue was taken up by the opposition due to this factor also. The main role played by the Mamata Banerjee by taking the help of political and government issues which are totally external, could not able to handle by Tatas. The formulation of Tata-Singur case is very much uncertain. There are too many speculations over there for unsatisfied farmers as they demanded more money now. Returning 400 acres to the farmers which was unwillingly for the Tatas or the main reason was the political factors.Theory of Socialism Socialism is a theory related to the political and economic factors of the public or for the mutual ownership of the people in particular regions. It has a lot of importance in the means of the production and makes the resources allocated among all the departments. The theory of socialism plays an important part in Singur Case. As the socialism theory will have the care for the people in the society, it will help the people to co operate the each other. The Tatas can carry out the production by the free association of the workers to use the maximum optimal resources.The co-ordination planning is the major part of this theory and I think in co-ordination or in the planning of the co-ordination Tata is the best in the industry. The decisions about the investment, distribution of the surplus money or invest in the production methods give the advantage over the others. Socialism is the theory which is based on the arrangements for labour time, all the units of power and other factors of the production. In the case of Singur, there are a lot of political factors or forces Tata faced by the government. The socialism theory originated from the intellectual and the working class of the society.So it impacts a lot of the political movement of the Tata Motors which arises from the fact of industrialization in the state. The main issue which comes into the picture was the private properties of the farmers in the Singur. As the West Bengal is an agriculture state, the Singur is totally depending upon the agriculture. But due to government rule, the land which is about irrigated from a long time it could be comes under the SEZs. Under SEZs the land will be used under the various government laws to start with some industries over there.The theory also emphasis on the fact about the issue at the Singur case is that due to socialism, the modern values to rationalize economic activities by the eliminating the capitalist production at the plant. It would also allow the workers for the economic output and the power to be distributed on the base of extended work in the manufacturing of the Nano Project. Theory of Pluralism Final Outcome All Organizations face a business environment in which international and macroeconomic phenomena Matter, The same with happened to TATA in Singur They faced a huge protest by the farmers in the land acquisition matter.The problem in Singur is essentially just that: the irresistible coming up against the immovable. While the government wants to develop industry in the state, farmers are worried about losing their land and procuring the next meal for themselves and their families. The trinomial congress, with its honorable leader Mamta Banerjee had a right intention of protecting the interests of the local farmers, started off well and managed to get a lot of political support from rural Bengal. As Nano factory was nearing completion, The CM of Bengal Mr.Bhattacharya stepped back and soon to com e up with support and not putting up the factory in Singur. The Tata’s mistake was to put too much faith in west Bengal chief minister Buddhadeb Bhattacharjee, and to depend only on him to provide them with easy possession of land on favorable terms, and to sort out all political problems. After that TATA had offered many compensation package in exchange of the acquired land to the farmers but their leader Mamta was not interested whatsoever in any package that endangers the survival of the problem.Taking a drastic site-selection turn, Tata Motors has abandoned the site in eastern India where its 2,000-employee plant was going to manufacture the new Nano mini-car. Prompted by months of often violent opposition from uprooted farmers, the pullout from the city of Singur came only after Tata had reportedly spent almost US$350 million, working for two years to ready the operation in West Bengal state to make the low-cost â€Å"People’s Car. Instead, the automaker is relocating to Sanand, Gujrat, where it will construct a $417 mill ion facility to make the Nano mini car. Critical Recommendations The TATA motors should have entered into direct negotiations with the farmers, tried to understand their problems with empathy and offered them a higher price and employment for at least one member of each affected family. Tata motors should not have gone so far ahead in construction before critical land acquisition issues were settled How to cite Kolb Model, Papers