The Taste Of India

A PROJECT REPORT ON AMUL LITE

INTERNATIONAL BUSINESS
By SR NO. 1. 2. 3. 4. 5. NAME MARIUM AHMED HAMMAD ANSARI MUSAIB ANSARI NOMAN KHAN ABBAS SAYYED ROLL NO. 02 03 05 23 34 SPECIALISATION MARKETING MARKETING MARKETING MARKETING MARKETING

ACADEMIC YEAR 2011-2012 GUIDED BY

Prof. Sameer Charania

Masters in Management Studies

Anjuman I Islams Allana Institute of Management Studies & RESEARCH

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Executive Summary
This project is about introducing a product in the international market .In this project we have taken AMUL LITE to be marketed in USA and CANADA. USA is a country with a lot of health conscious people, in fact it is a nation of health conscious people as well as it has Indian and Asian migrants where taste comes first , USA's dynamics is unique and incomparable with growing population of migrants preferring brands which offer taste and quality. CANADA is a country with a huge population of Punjabis, a community where makkhan butter is used on a large scale. Thus there is huge potential of our product to prosper and progress. Amul is the market leader in India with this achievement the spirits are high to enter the world market, it will act as a boon to the masses in world market as it will add taste to their life with their healthy diet. Mode of entry to enter the foreign markets such as CANADA and USA is through Distributor. Hope a happy journey for AMUL LITE BUTTER to both the countries VIA AIR AMERICA AND AIR CANADA.

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FACTORS TO BE CONSIDERED : USA

GDP of USA 14.7 trillion $ POPULATION SIZE- 311,354,000 including an estimated 11.2mn illegal migrants. Rural and Urban market: Market size: market size is huge with good purchasing power of the people Level of competition: - It is a market with huge foreign players and domestic players. It is a country which is more into trading than manufacturing thus it offers huge variants and substitutes for each product

Legal environment: - Legal environment is very influential and a huge dominating factor due to stringent and strict norms. Law enforcement in the United States is primarily the responsibility of local police and sheriff's departments, with state police providing broader services

At the federal level and in almost every state, jurisprudence operates on a common law system State courts conduct most criminal trials; federal courts handle certain designated crimes as well as certain appeals from the state systems

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Among developed nations, the United States has above-average levels of violent crime and particularly high levels of gun violence and homicide. In 2007, there were 5.6 murders per 100,000 persons three times the rate in neighboring Canada The U.S. homicide rate, which decreased by 42% between 1991 and 1999, has been roughly steady since. The United States has the highest documented incarceration rate and total prison population in the world At the start of 2008, more than 2.3 million people were incarcerated, more than one in every 100 adults. The current rate is about seven times the 1980 figure.

African American males are jailed at about six times the rate of white males and three times the rate of Hispanic males.

FEDERAL STATUTES The U.S. Constitution gives Congress to power to enact federal laws ("statutes") on certain subjects. The Copyright Act (discussed extensively in the Copyright Law Summary ) is one example of a statute adopted by Congress. Congress's power to enact the Copyright Act stems from Article I, Section 8, of the Constitution, which authorizes Congress to establish laws giving "authors and inventors the exclusive right to their respective writings and discoveries" to encourage progress in the arts and sciences. According to the Constitution, all powers not delegated to Congress are reserved to the states. The "commerce clause" of the Constitution (which
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concerns interstate commerce) is generally viewed as giving Congress broad power to regulate matters affecting interstate commerce - trademarks used in interstate commerce, for example. Federal law-making begins when a member of the Senate or the House of Representatives introduces a bill. Most bills are referred to standing committees (for example, the House Committee on the Judiciary) and to subcommittees for study. Bills are later brought before the Senate or House for debate and vote. Differences between the Senate and House versions of a bill are resolved in joint conference committees. After the House and Senate have approved a uniform version of the bill, the bill is sent to the President. If the President signs the bill, it becomes law. If the President vetoes the bill, it becomes law only if the Senate and House override the veto. This requires the consent of two-thirds of the members of the Senate and House. STATE STATUTES State legislatures can pass laws on matters for which they share jurisdiction with Congress. Trademark law is an example of a shared jurisdiction. In other matters, the federal government has taken exclusive jurisdiction. Copyright is an example: The Copyright Act prohibits the states from granting copyright-like protection. States can also pass laws on matters in which the Constitution does not grant jurisdiction to the federal government. State law-making occurs through a process that is similar to the federal process. THE COURTS The courts enforce statutes and interpret them. They also invalidate unconstitutional statutes, and make law in areas not covered by statutes. Here are some examples of the four main roles played by our courts:

Enforcement The Copyright Act gives a copyright owner the exclusive right to reproduce the owner's work. A copyright infringement suit is an example of court enforcement of a statute.

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(Copyright infringement is discussed in "Infringement," in the Copyright Law Summary ) Interpretation .According to the Copyright Act, the copyright in a work created by an employee within the scope of his or her employment is owned by the employer. The Copyright Act does not define the term "employee." The Supreme Court case that defines the term is an example of court interpretation of a statute. (That case is discussed in the "The Work Made for Hire Rule" in the Ownership of Copyrights Summary ) Invalidation . The courts invalidate unconstitutional laws. Unconstitutional laws are laws that conflict with provisions of the Constitution. The Constitution is the supreme law of the United States. Many "constitutionality" cases involve claims that a law violates the Constitution's Bill of Rights (the first ten amendments). In Roe v. Wade , the Supreme Court invalidated a state statute restricting women's access to abortion. According to the Court, the statute violated a pregnant woman's constitutional right of privacy. Making Law . The courts create the law for "common law" subject areas. Common law covers areas not covered by statutes. In many states, for example, individuals' rights of privacy and publicity are protected under common law rather than under statutory laws.

Types of Courts There are several types of courts. The federal and state court systems consist of two levels of courts: Trial courts and appellate courts. Cases are tried in trial courts. Appellate courts review the decisions of the trial courts. (Appellate and trial courts are discussed in "Civil Lawsuits," later in this summary.) The federal court system is divided into 13 judicial circuits. Eleven of the circuits are numbered. Each of the numbered circuits contains more than one state. The Ninth Circuit, for example, covers California, Oregon, Washington, Idaho, Nevada, Arizona, Alaska, and Hawaii. The 12th and 13th circuits are the District of Columbia Circuit and the Federal Circuit. The Federal Circuit handles appeals in patent cases and Claims Court cases.

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Each federal circuit has one appellate court. These courts are known as Courts of Appeals or Circuit Courts. The Supreme Court reviews the decisions of the Courts of Appeals. Each federal circuit is divided into judicial districts. A district can be as small as one city or as large as an entire state. The trial courts are known as the United States District Courts. Jurisdiction The federal courts have jurisdiction over cases involving federal statutes (the Copyright Act, for example) and other "federal questions." They also have jurisdiction over cases in which the party filing the suit and the party being sued reside in different states. This type of federal jurisdiction is known as "diversity" jurisdiction. Other types of cases must be brought in state court. Civil and Criminal Cases A criminal case is brought by the federal government or a state to prosecute a defendant (the party sued) for violations of the government's criminal laws. Murder and burglary are examples of violations of criminal laws. If the defendant in a criminal case is found guilty by the jury, he or she is sentenced by the court to serve a jail sentence or pay a fine as punishment for the crime. A civil case is a case brought by one party (the "plaintiff") against another party (the "defendant") to resolve a legal dispute involving rights based on statutory law or common law. A copyright infringement case is an example of a civil case involving statutory law. A suit seeking damages for a writer's breach of a contract (in which the writer promised to create a script for a movie but failed to do so) is an example of a civil case involving common law rights. (Breach of contract is discussed in "What Is a Contract?," the Contracts Law Summary ) While certain violations of the Copyright Act and the Lanham Act (the federal trademark statute) are criminal violations, multimedia developers and publishers will be concerned primarily with civil cases.
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Civil Lawsuits There are several stages in civil lawsuits, from initiation to trial and then on to stages of appeal. We'll discuss these stages in this section. Initiation A civil lawsuit is initiated when the plaintiff files a "complaint" against the defendant alleging that the defendant has wronged the plaintiff in some way recognized by the law. In most civil lawsuits, the plaintiff asks the court to award the plaintiff "damages" (a remedy for the defendant's wrongdoing usually money) or to order the defendant to do something. The defendant responds to the allegations in the complaint by filing an "answer" (a document in which the defendant admits or denies the complaint's allegations and states defenses). The defendant can also file a "counterclaim" against the plaintiff (allegations that the plaintiff has wronged the defendant). Trial If the parties do not "settle" the case (reach their own agreement on how to resolve the dispute), the case eventually goes to trial. In most types of civil cases, the Constitution gives the parties a right to a jury trial. The role of the jury is to decide questions of fact. However, in some complex cases, the parties choose to dispense with the jury and have the case decided by the judge. Appeal If the losing party in a civil lawsuit is not satisfied with the decision of the trial court, the losing party can appeal the case to the appropriate appellate court. In the federal court system, the appeal generally must be filed with the Court of Appeals for the judicial circuit in which the trial was held. A case tried in the United States District Court for the Northern District of California, for example, must be appealed to the Court of Appeals for the Ninth Circuit.

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An appellate court's job in reviewing a trial court's decision is to look for "mistakes of law" made by the trial court. Appellate courts do not "second guess" factual issues decided by trial courts. In our legal system, factual issues are supposed to be resolved by the jury, not by the appellate court. So long as there is adequate factual evidence to support the verdict, an appellate court will not reverse a trial court's decision or "remand" the case (send it back to the trial court for retrial) unless they find that the trial court made a "mistake of law." Filing an appeal is probably a waste of money unless a losing party can reasonably hope to convince the appellate judges that there is insufficient evidence to support the trial court's decision, or that the trial court misapplied the law

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CANADA
GDP of CANADA

$1.574 trillion (2010) 5.6% (2009/Q1 to 2010/Q1)

POPULATION SIZE- 3,42,78,400 Rural and Urban market: Market size: market is vibrant and fast changing with developing trends and new entrants, the huge migrant population and the home population leads to a good market potential. Level of competition: - It is a market with huge foreign players and domestic players. It is a country which has huge manufacturers of butter and but the taste of india remains a unique point. Legal environment: - Constitution of Canada Canada's constitution is its supreme law, and any law passed by any federal, provincial, or territorial government that is inconsistent with the constitution is invalid. The Constitution Act, 1982 stipulates that Canada's constitution includes that act, a series of thirty acts and orders referred to in a schedule to that act (the most notable of which is the Constitution Act, 1867), and any amendment to any of those acts. However, the Supreme Court of Canada has found that this list is not intended to be exhaustive, and in 1998's Reference re Secession of Quebec identified four "supporting principles and rules" that are included as unwritten elements of the constitution: federalism, democracy, constitutionalism and the rule of law, and respect for minorities. While these principles are an enforceable part of Canada's constitution, Canadian courts have not used them to override the written text of the constitution, instead confining their role to "filling gaps"
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Because the Constitution Act, 1867 provides that Canada's constitution is "similar in Principle to that of the United Kingdom", which is considered to be an unwritten constitution, the Supreme Court has also recognized the existence of constitutional conventions. In 1981's Reference re a Resolution to amend the Constitution, the Court provided three factors necessary for the existence of a constitutional convention: a practice or agreement developed by political actors, a recognition that they are bound to follow that practice or agreement, and a purpose for that practice or agreement. It also found that, while these conventions are not law and are therefore unenforceable by the courts, courts may recognize conventions in their ruling. The Constitution Act, 1867 assigns powers to the provincial and federal governments. Matters under federal jurisdiction include criminal law, trade and commerce, banking, and immigration. The federal government also has the residual power to make laws necessary for Canada's "peace, order and good government". Matters under provincial jurisdiction include hospitals, municipalities, education (except education on First Nation reserves), and property and civil rights. The Constitution Act, 1867 also provides that, while provinces establish their own superior courts, the federal government appoints their judges. It also gives the federal Parliament the right to establish a court system responsible for federal law and a general court of appeal to hear appeals of decisions of both federal and provincial courts This last power resulted in the federal Parliament's creation of the Supreme Court of Canada, which is, despite its role as supreme arbiter of all Canadian law, a creation of simple, rather than constitutional, statute The Constitution Act, 1982 created a mechanism by which Canada's constitution could be amended by joint action of federal and provincial governments; prior to 1982, it could be amended only by the Parliament of the United Kingdom. It also created the Charter of Rights and Freedoms, which grants individual rights which may not be contravened by any provincial or federal law.

Legislation

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Acts passed by the Parliament of Canada and by provincial legislatures are the primary sources of law in Canada. Sections 91 and 92 of the Constitution Act, 1867 enumerate the subject matters upon which either level of government (federal and provincial) may legitimately enact legislation. Laws passed by the federal government are initially announced in the Canada Gazette, a regularly published newspaper for new statutes and regulations. Federal bills that receive Royal Assent are subsequently published in the Annual Statutes of Canada. From time to time, the federal government will consolidate its current laws into a single consolidation of law known as the Revised Statutes of Canada. The most recent federal consolidation was in 1985. Laws passed by the provinces follow a similar practice. The Acts are announced in a provincial gazette, published annually and consolidated from time to time. Legal traditions Common law All provinces and territories within Canada, excluding Quebec, follow the common law legal tradition. Equally, courts have power under the provincial Judicature Acts to apply equity. As with all common law countries, Canadian law adheres to the doctrine of stare decisis. Lower courts must follow the decisions of higher courts by which they are bound. For instance, all Ontario lower courts are bound by the decisions of the Ontario Court of Appeal and, all British Columbia lower courts are bound by the decisions of the British Columbia Court of Appeal. However, no Ontario court is bound by decisions of any British Columbia court and no British Columbia court is bound by decisions of any Ontario court. Nonetheless, decisions made by a province's highest court (provincial Courts of Appeal) are often considered as "persuasive" even though they are not binding on other provinces.

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Only the Supreme Court of Canada has authority to bind all courts in the country with a single ruling. The busier courts, such as the Court of Appeal for Ontario, for example, are often looked to for guidance on many local matters of law outside the province, especially in matters such as evidence and criminal law. When there is little or no existing Canadian decision on a particular legal issue and it becomes necessary to look to a non-Canadian legal authority for reference, decisions of English courts and American courts are often utilized. In light of the long standing history between English law and Canadian law, the English Court of Appeal and the House of Lords are often cited as and considered persuasive authority, and are often followed. If the legal question at issue relates to matters of constitutional or privacy law, however, decisions of United States courts are more likely to be utilized by Canadian lawyers because there is a much greater body of jurisprudence in U.S. law than English law in these areas. Decisions from Commonwealth nations, aside from England, are also often treated as persuasive sources of law in Canada. Due to Canadas historical connection with the United Kingdom, decisions of the House of Lords before 1867 are technically still binding on Canada unless they have been overturned by the Supreme Court of Canada, and Canada is still bound by the decisions of the Privy Council before the abolishment of appeals to that entity in 1949. In practice, however, no court in Canada has declared itself bound by any English court decision for decades, and it is highly unlikely that any Canadian court will do so in the future. Criminal offences are found within the Criminal Code of Canada or other federal/provincial laws, with the exception that contempt of court is the only remaining common law offence in Canada.

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Civil Law Law in Quebec For historical reasons, Quebec has a hybrid legal system. Private law follows the civil law tradition, originally expressed in the Coutume de Paris as it applied in what was then New France. Today, the jus commune of Quebec is codified in the Civil Code of Quebec. As for public law, it was made that of the conquering British nation after the fall of New France in 1760, that is the common law. It is important to note that the distinction between civil law and common law is not based on the division of powers set out in the Constitution Act, 1867. Therefore, legislation enacted by the provincial legislature in matters of public law, such as the Code of Penal Procedure, should be interpreted following the common law tradition. Likewise, legislation enacted by the federal Parliament in matters of private law, such as the Divorce Act, is to be interpreted following the civil law tradition and in harmony with the Civil Code of Quebec. Judicial system

Under the Constitution Act, 1867, the federal Parliament and the provincial legislatures both have the constitutional authority to create courts: Parliament under s. 101, and the Provinces under s. 92(14) . However, the federal power to create courts is much more limited than the provincial power. The provincial courts have a much more extensive jurisdiction, including the constitutionally entrenched power to determine constitutional issues. The Supreme Court of Canada (French: Cour suprme du Canada) is the highest court of Canada and is the final court of appeal in the Canadian justice system. Parliament created it by Act of Parliament in 1875, as a "general court of appeal for Canada". Prior to 1949, cases could be appealed to the Judicial Committee of the Privy Council in the United Kingdom, and some cases bypassed the Supreme Court of Canada entirely.

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Other than the Supreme Court, the Canadian court system is divided into two classes of courts: superior courts of general jurisdiction, and courts of limited jurisdiction, sometimes referred to as inferior courts. The superior courts, created and maintained by the provinces, are divided into superior courts of original jurisdiction and superior courts of appeal. These courts are sometimes also referred to as "Section 96" courts, in reference to s. 96 of the Constitution Act, 1867, which grants the federal government the power to appoint the judges of these courts. As courts of general jurisdiction, the provincial superior courts of original jurisdiction have jurisdiction over all matters, under both federal and provincial law, unless the matter has been assigned to some other court or administrative agency by a statute passed by the appropriate legislative body. The superior courts of original jurisdiction have an extensive civil jurisdiction, under both federal and provincial laws. Under the Criminal Code, a federal statute, they have jurisdiction over the most serious criminal offences, such as murder. They also hear appeals from the Provincial Courts in criminal matters and some civil matters. A further appeal normally lies to superior court of appeal, the highest court in each province. The provinces also can establish courts of limited jurisdiction, whose jurisdiction is limited solely to what is included in the statutory grant of jurisdiction. These courts are often called "Provincial Courts", even though the superior courts established by the provinces are also provincial courts. The Provincial Courts have an extensive criminal jurisdiction under the Criminal Code, a federal statute, and also typically have a limited civil jurisdiction in matters under provincial jurisdiction, such as small claims and some family matters. The judges of the Provincial Courts are appointed by the provincial governments.

There are also additional federal courts established by Parliament, which have a specialised jurisdiction in certain areas of federal law. These courts are the Federal Court of Appeal, the Federal Court, the Tax Court of Canada, and the Court Martial Appeal Court of Canada.

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Introduction of USA:
INTRODUCTION TO THE USA
The United States of America (also referred to as the United States, the U.S., the USA, or America) is a federal constitutional republic comprising fifty states and a federal district. The country is situated mostly in central North America, where its forty-eight contiguous states and Washington, D.C., the capital district, lie between the Pacific and Atlantic Oceans, bordered by Canada to the north and Mexico to the south. The state of Alaska is in the northwest of the continent, with Canada to the east and Russia to the west across the Bering Strait. The state of Hawaii is an archipelago in the mid-Pacific. The country also possesses several territories in the Caribbean and Pacific. At 3.79 million square miles (9.83 million km2) and with over 308 million people, the United States is the third or fourth largest country by total area, and the third largest both by land area and population. It is one of the world's most ethnically diverse and multicultural nations, the product of large-scale immigration from many countries. The U.S. economy is the world's largest national economy, with an estimated 2010 GDP of $14.7 trillion (23% of nominal global GDP and 20% of global GDP at purchasing power parity). Indigenous peoples of Asian origin have inhabited what is now the mainland United States for many thousands of years. This Native American population was greatly reduced by disease and warfare after European contact. The United States was founded by thirteen British colonies located along the Atlantic seaboard. On July 4, 1776, they issued theDeclaration of Independence, which proclaimed their right to selfdetermination and their establishment of a cooperative union. The rebellious states defeated the British Empire in the American Revolution, the first successful colonial war of independence. The currentUnited States Constitution was adopted on September 17, 1787; its ratification the following year made the states part of a single republic with a strong federal government. The Bill of Rights, comprising ten constitutional amendments guaranteeing manyfundamental civil rights and freedoms, was ratified in 1791. [Type text]

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Through the 19th century, the United States displaced native tribes, acquired land from France, Spain, the United Kingdom, Mexico, and Russia, and annexed the Republic of Texas and the Republic of Hawaii. Disputes between the agrarian South and industrial North over the expansion of the institution of slavery and states' rights provoked theAmerican Civil War of the 1860s. The North's victory prevented a permanent split of the country and led to the end of legal slavery in the United States. By the 1870s, the national economy was the world's largest. The SpanishAmerican War and World War I confirmed the country's status as a military power. It emerged from World War II as the first country with nuclear weapons and a permanent member of the United Nations Security Council. The end of the Cold War and the dissolution of the Soviet Union left the United States as the sole superpower. The country accounts for 43% of global military spending and is a leading economic, political, and cultural force in the world.

PEST ANALYSIS OF THE US

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United States has operated under a two-party system for most of its history . Democratic Party, founded in 1824, and the Republican Party, founded in 1854.However third party was operated by the name of Progressive in 1912. Democratic Party: Democratic Party is considered center-left or "liberel" Republican Party: The Republican Party is considered center-right or "conservative" Barack Obama: He is the winner of the 2008 presidential election. The 44th U.S. president

POLITICAL ANALYSIS
As we all know U.S.A is world power now a day and its politicians and government had many impacts on the overall economy of the world. From our point of view U.S.A had following political factors: Environmental regulation and protections: The environment law foundation (ELF) is helps peoples use the law to protect and improve their environment and quality of life. Tax policies: The USA new government collected revenue from the custom duties and selective taxes termed excise taxes on such items as liquor, tobacco, sugar and certain legal document. International trade regulation and restrictions: The government of USA makes lot of polices about trade. Tariff policy etc Contract enforcement laws. The law enforcement in the united state is the criminal justice system along with courts and corrections. Consumer protection law: consumer protection law designed to ensure fair trade competition and free flow of truthful information in the market. [Type text]

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Employment law: The united state supreme court recently ruled that antiRetaliation provision of the fair labors standard such as protects employee right etc. Government organization / attitude: There are major differences between the political system of the United States and that of most other developed democracies. These include increased power of the upper house of the legislature, a wider scope of power held by the Supreme Court the separation of powers between the legislature and the executive, and the dominance of only two main parties. The United States is one of the world's developed democracies where third parties have the least political influence Competition regulation. Competition law, known in the United States as antitrust law, is law that promotes or maintains market competition by regulating anti-competitive conduct. 1947, limited international competition obligations were proposed within the Charter for an International Trade Organization. High Political stability: The United States has enjoyed 135 years of political stability since the end of the Civil War Safety regulations. Safety laws are made regarding Crime, Prisons, and Corrections. Safe Kids USA works to ensure that state and federal laws help prevent child injury. Safety laws can make products safer for consumers and promote the use of safety devices. Freedom of the press. United States Ranked 36th In The World For Press Freedom The public's right to know is one of the central principles of American society Border Control. CBP is one of the Department of Homeland Securitys largest and most complex components, with a priority mission of keeping terrorists and their weapons out of the U.S. It also has a responsibility for securing and [Type text]

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facilitating trade and travel while enforcing hundreds of U.S. regulations, including immigration and drug laws. Institutional Stability. The diplomats and decision makers of the United States believe, habitually and uncritically, that stability abroad is our most important strategic objective High Wage Policy. the US is in for a manufacturing renaissance, thanks to plummeting wages and toothless labor protection policies in the American south Strong infrastructure. America's Top 5 Cities Offering the Best Infrastructure VANCOUVER,, ATLANTA, MONTREAL, TORONTO, WASHINGTO International Security Agreement. International Social Security agreements, often called "Tantalization agreements," have two main purposes. First, they eliminate dual Social Security taxation, the situation that occurs when a worker from one country works in another country and is required to pay Social Security taxes to both countries on the same earnings. Second, the agreements help fill gaps in benefit protection for workers who have divided their careers between the United States and another country. Reducing poverty and inequality. Periods of strong economic growth, which bring more jobs and higher wages, have helped reduce poverty but have not eliminated it entirely. Counternarcotics policies.

In

testimony

before

the

U.S.

House

of

Representatives Domestic Policy Subcommittee of the Oversight and Government Reform Committee, Vanda Felbab-Brown assesses the Obama administrations counternarcotics strategy, focusing on the role and design of supply-side programs within the strategy.

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The Taste Of India Foreign relations and military: The foreign policy of the United States is the

policy for which the United States interacts with foreign nations and sets standards of interaction for its organizations, corporations and individual citizens. The U.S. is highly influential in the world. The global reach of the United States is backed by a $15 trillion economy, approximately a quarter of global GDP, and a defense budget of $711 billion, which accounts for approximately 43% of global military spending.

Social Security: Michael J. Astrue, Commissioner of Social Security, today announced the agency is publishing data on its Open Government website www.socialsecurity.gov/open about verifications the agency conducts for States under the Help America Vote Act (HAVA) of 2002. Under HAVA, most States are required to verify the last four digits of the Social Security number of people newly registering to vote who do not possess a valid State driver's license. Import and export duties. The USITC Interactive Tariff and Trade Data Web provides international trade statistics and U.S. tariff data to the public full-time and free of charge. U.S. import statistics, U.S. export statistics, U.S. tariffs, U.S. future tariffs and U.S. tariff preference information are available on a self-service, interactive basis FISCAL POLICY: Fiscal policy is considered any changes the government makes to the national budget in order to influence a nations economy. The approach to economic policy in the United States was rather laissez-faire until the Great Depression. The government tried to stay away from economic matters as much as possible and hoped that a balanced budget would be maintained.
MONETARY POLICY: Monetary policy concerns the actions of a central bank

or other regulatory authorities that determine the size and rate of growth of the money supply. In the United States, the Federal Reserve is in charge of monetary

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policy, and implements it primarily by performing operations that influence short term interest rates.

ECONOMICAL ANALYSIS
The United States has a capitalist, mixed economy, which is fueled by abundant natural resources, a well-developed infrastructure, and high productivity. According to the International Monetary Fund, the U.S. GDP of $14.870 trillion constitutes 24% of the gross world product at market exchange rates and almost 21% of the gross world product atpurchasing power parity (PPP). It has the largest national GDP in the world, though it is about 5% less than the GDP of the European Union at PPP in 2008. The country ranks ninth in the world in nominal GDP per capita and sixth in GDP per capita at PPP. The United States is the largest importer of goods and third largest exporter though exports per capita are relatively low. In 2008, the total U.S. trade deficit was $696 billion. Canada, China, Mexico, Japan, and Germany are its top trading partners. In 2007, vehicles constituted both the leading import and leading export commodity. Japan is the largest foreign holder of U.S. public debt, having surpassed China in early 2010. The United States ranks second in the Global Competitiveness Report. In 2009, the private sector was estimated to constitute 55.3% of the economy, with federal government activity accounting for 24.1% and state and local government activity (including federal transfers) the remaining 20.6%. The economy is postindustrial, with the service sector contributing 67.8% of GDP, though the United States remains an industrial power. The leading business field by gross business receipts is wholesale and [Type text]

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retail trade; by net income it is manufacturing. Chemical products are the leading manufacturing field. The United States is the third largest producer of oil in the world, as well as its largest importer. It is the world's number one producer of electrical and nuclear energy, as well as liquid natural gas, sulfur, phosphates, and salt. While agriculture accounts for just under 1% of GDP, the United States is the world's top producer of corn and soybeans. The New York Stock Exchange is the world's largest by dollar volume. Coca-Cola and McDonald's are the two most recognized brands in the world. In August 2010, the American labor force comprised 154.1 million people. With 21.2 million people, government is the leading field of employment. The largest private employment sector is health care and social assistance, with 16.4 million people. About 12% of workers are unionized, compared to 30% in Western Europe. The World Bank ranks the United States first in the ease of hiring and firing workers. In 2009, the United States had the third highest labor productivity per person in the world, behind Luxembourg and Norway. It was fourth in productivity per hour, behind those two countries and the Netherlands. Compared to Europe, U.S. property and corporate income tax rates are generally higher, while labor and, particularly, consumption tax rates are lower.
Economic indicators

Unemployment

8.9% (March 2011)

GDP growth

2.8% (4Q 2010), 2.8% (2009

2010)

CPI inflation

2.7% (March 2010 March 2011)

Poverty

14.3% (2009)

Public debt

$14.22 trillion (March 21, 2011)

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Household net worth $54.2 trillion (4Q 2009)

A BRIEF ECONOMIC ANALYSIS: The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $47,400. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. The war in March-April 2003 between a US-led coalition and Iraq, and the subsequent occupation of Iraq, required major shifts in national resources to the military. Soaring oil prices between 2005 and the first half of 2008 threatened inflation and unemployment, as higher gasoline prices ate into consumers' budgets. Imported oil accounts for about 60% of US consumption. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups. The merchandise trade deficit reached a record $840 billion in 2008 before shrinking to $506 billion in 2009, and ramping back up to $630 billion in 2010. The global economic downturn, the [Type text]

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sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and other industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barrack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. Approximately two-thirds of these funds were injected into the economy by the end of 2010. In March 2010, President OBAMA signed a health insurance reform bill into law that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a bill designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. In November 2010, in an attempt to keep interest rates from rising and snuffing out the nascent recovery, the US Federal Reserve Bank (The Fed) announced that it would purchase $600 billion worth of US Government bonds by June 2011. MAIN SECTORS OF THE ECONOMY: a. RETAILING: Retailing is a major sector of the economy of the United States, indeed, it is often credited with "leading" the economy. Consumer goods are commonly obtained through [Type text]

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international trade, but many consumer products are available that are "made in America". In 2011 it was reported that rising commodity and fuel prices and labor costs in China were exerting upward pressure on prices creating a dilemma for retailers who lost sales during the Great Recession and continue to face a weak market. Major retail firms in the United States include Walmart, Montgomery Ward, Sears,Amazon.com, Target, Macy's, McDonalds, Burger King, Safeway, A & P, and The Home Depot. Some, such as Wal-Mart and KFC, serve a global market. Outside of the agricultural sector, the cooperative movement is anemic in the United States.

b. ENERGY: The United States is the largest energy consumer in terms of total use, using 100 quadrillion BTUs (105 exajoules, or 29000 TWh) in 2005. The U.S. ranks seventh in energy consumption per-capita after Canada and a number of other countries. The majority of this energy is derived from fossil fuels: in 2005, it was estimated that 40% of the nation's energy came from petroleum, 23% from coal, and 23% from natural gas. Nuclear power supplied 8.4% and renewable energy supplied 6.8%, which was mainly from hydroelectric dams although other renewals are included. American dependence on oil imports grew from 24% in 1970 to 65% by the end of 2005. At the current rate of unchecked import growth, the US would be 70% to 75% reliant on foreign oil by the middle of the next decade. Transportation has the

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highest consumption rates, accounting for approximately 68.9% of the oil used in the United States in 2006, and 55% of oil use worldwide as documented in the Hirsch report.

c. AGRICULTURE: Agriculture is a major industry in the United States and the country is a net exporter of dairy. With vast tracts of temperate arable land, technologically advanced agribusiness, and agricultural subsidies, the United States controls almost half of world grain exports. Agricultural products include wheat, corn, other grains, fruits, vegetables, cotton; beef, pork, poultry, dairy products; forest products; fish.

d. MANUFACTURING: The United States is the world's largest manufacturer, with a 2007 industrial output of US$2.69 trillion. In 2008, its manufacturing output was greater than that of the manufacturing output of China, India, and Brazil combined, despite manufacturing being a very small portion of the entire US economy as compared to most other countries. A large portion of US industrial output, the US leads the world in airplane manufacturing. American companies such as Boeing, Cessna (see: Textron), Lockheed Martin (see: Skunk Works), and General Dynamics produce a vast majority of the world's civilian and military aircraft in factories stretching across the United States. Main industries include petroleum, steel, automobiles, construction machinery, aerospace, agricultural machinery, telecommunications, chemicals, electronics, dairy processing, consumer goods, lumber, and mining. A total of 3.2 million one in six U.S. factory jobs have disappeared since the start of 2000. The manufacturing sector of the U.S. economy has experienced substantial job losses over the past several years. In January 2004, the number of such jobs stood at 14.3 [Type text]

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million, down by 3.0 million jobs, or 17.5 percent, since July 2000 and about 5.2 million since the historical peak in 1979. Employment in manufacturing was its lowest since July 1950. The U.S. produces approximately 21% of the world's manufacturing output, a number which has remained unchanged for the last 40 years. The job loss during this continual volume growth is explained by record breaking productivity gains. In addition, growth in telecommunications, pharmaceuticals, aircraft, heavy machinery and other industries along with declines in low end, low skill industries such as clothing, toys, and other simple manufacturing have resulted in U.S. jobs being more highly skilled and better paying.

e. FINANCE: Measured by value of its listed companies' securities, the New York Stock Exchange is more than three times larger than any other stock exchange in the world. As of October 2008, the combined capitalization of all domestic NYSE listed companies was US$10.1 trillion. New York City is the financial capital of the world alongside London. NASDAQ is another American stock exchange and the world's 3rd largest exchange after the New York Stock Exchange and Japan's Tokyo larger than Japan's Stock Exchange. However is the NASDAQ's trade value is TSE. NASDAQ

largest electronic screen-based equity securities trading market in the USA. With approximately 3,800 companies and corporations, it has more trading volume per hour than any other stock exchange.

RECENT KEY ECONOMIC ISSUES: 1. LATE 2000'S RECESSION: The late-2000s recession, more often called the Great Recession, is a severe ongoing global economic problem that began in December 2007 and took a particularly sharp downward turn in September 2008. [Type text]

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The Great Recession has affected the entire world economy, with higher detriment in some countries than others. It is a global recession characterized by various systemic imbalances and was sparked by the outbreak of the late-2000s financial crisis. Pre-recession economic imbalances: I. II. III. Commodity boom. Housing bubble. Inflation. EFFECTS: The late-2000s recession is shaping up to be the worst post-World War II contraction on record:

Real gross domestic product (GDP) began contracting in the third quarter of 2008, Capital investment, which was in decline year-on-year since the final quarter of

and by early 2009 was falling at an annualized pace not seen since the 1950s.

2006, matched the 195758 post war record in the first quarter of 2009. The pace of collapse in residential investment picked up speed in the first quarter of 2009, dropping 23.2% year-on-year, nearly four percentage points faster than in the previous quarter.

US Domestic demand, in decline for five straight quarters, is still three months

shy of the 197475 record, but the pace down 2.6% per quarter vs. 1.9% in the earlier period is a record-breaker already.

A report in 2009 by Bloomberg states that $14.5 trillion of value of global

companies has been erased since the crisis began.

2. PROPOSED BAILOUT OF US FINANCIAL SYSTEM IN 2008:

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The Emergency Economic Stabilization Act of 2008, commonly referred to as a bailout of the U.S. financial system, is a law enacted in response to the subprime mortgage crisis authorizing the United States Secretary of the Treasury to spend up to US$700 billion to purchase distressed assets, especially mortgage-backed securities, and make capital injections into banks (however, the plan to purchase distressed assets has been abandoned). Both foreign and domestic banks are included in the program. The Federal Reserve also extended help to American Express, whose bank-holding application it recently approved. The Act was proposed by Treasury Secretary Henry Paulson during the global financial crisis of 2008. POTENTIAL EFFECTS: The maximum cost of a $700 billion bailout would be $2,295 estimated cost per American (based on an estimate of 305 million Americans), or $4,635 per working American (based on an estimate of 151 million in the work force). The bulk of this money would be spent to purchase mortgage backed securities, ultimately backed by American homeowners, which possibly could be sold later at a profit, by the government. Economist Michael Hudson predicts that the bailout would cause hyperinflation and dollar collapse. However, there is no persuasive evidence of prices rising and the U.S. Dollar Index has actually risen to higher levels than before the plan's announcement. Indeed, during the week before and after the EESA was agreed, investment bank UBS was continually flatly rejecting that bailouts such as these were inflationary, emphasizing instead that they were anti-deflationary, not inflationary. The 2008 federal budget submitted by the president is $2.9 trillion, meaning a $700 billion bailout would constitute a 24% increase to $3.6 trillion, which would in fact far exceed the $3.1 trillion 2009 budget. The total government commitment and proposed commitments so far in

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its current and proposed bailouts is reportedly $1 trillion compared to the $14 trillion United States economy.

3. SUBPRIME MORTGAGE CRISIS: The US sub prime mortgage crisis was one of the first indicators of the late-2000s financial crisis, characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backing said mortgages. Approximately 80% of U.S. mortgages issued to subprime borrowers were adjustable-rate mortgages. After U.S. house sales prices peaked in mid-2006 and began their steep decline forthwith, refinancing became more difficult. As adjustable-rate mortgages began to reset at higher interest rates, mortgage delinquencies soared. Securities backed with mortgages, including sub prime mortgages, widely held by financial firms, lost most of their value. Global investors also drastically reduced purchases of mortgage-backed debt and other securities as part of a decline in the capacity and willingness of the private financial system to support lending. Concerns about the soundness of U.S. credit and financial markets led to tightening credit around the world and slowing economic growth in the U.S. and Europe.

4. OIL PRICE INCRESES SINCE 2003: From the mid-1980s to September 2003, the inflation-adjusted price of a barrel of crude oil onNYMEX was generally under $25/barrel. During 2003, the price rose above $30, reached $60 by August 11, 2005, and peaked at $147.30 in July 2008. Commentators attributed [Type text]

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these price increases to many factors, including reports from the United States Department of Energy and others showing a decline in petroleum reserves, worries over peak oil, Middle East tension, and oil price speculation. For a time, geo-political events and natural disasters indirectly related to the global oil market had strong short-term effects on oil prices, such as North Korean missile tests, the 2006 conflict between Israel and Lebanon, worries over Iranian nuclear plans in 2006, Hurricane Katrina, and various other factors. By 2008, such pressures appeared to have an insignificant impact on oil prices given the onset of the global recession. The recession caused demand for energy to shrink in late 2008, with oil prices falling from the July 2008 high of $147 to a December 2008 low of $32. Oil prices stabilized by October 2009 and established a trading range between $60 and $80. EFFECTS: There is debate over what the effects of the 2000s energy crisis will be over the long term. Some speculate that an oil-price spike could create a recession comparable to those that followed the 1973 and 1979 energy crises or a potentially worse situation such as a global oil crash. Increased petroleum prices are however reflected in a vast number of products derived from petroleum, as well as those transported using petroleum fuels. Political scientist George Friedman has postulated that if high prices for oil and dairy persist, they will define the fourth distinct geopolitical regime since the end of World War II, the previous three being the Cold War, the 1989-2001 period in which economic globalization was primary, and the post-9/11 "war on terror".

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In addition to high oil prices, from year 2000 volatility in the price of oil has increased notably and this volatility has been suggested to be a factor in the ongoing financial crisis which began in 2008.

SOCIAL ANALYSIS
It includes Geography, climate, and environment. The land area of the contiguous United States is approximately 1.9 billion acres (770 million hectares). The U.S. ecology is considered "mega diverse": about 17,000 species of vascular plants occur in the contiguous United States and Alaska, and over 1,800 species of flowering plants are found in Hawaii, few of which occur on the mainland. There are fifty-eight national parks and hundreds of other federally managed parks, forests, and wilderness areas. The United States is the world's third or fourth largest nation by total area (land and water), ranking behind Russia and Canada and just above or below China. The Appalachian Mountains divide the eastern seaboard from the Great Lakes and the grasslands of the Midwest The MississippiMissouri River, the world's fourth longest river system, runs mainly northsouth through the heart of the country Alaska's Mount McKinley is the tallest peak in the country and in North America The United States, with its large size and geographic variety, includes most climate types east of the 100th meridian, the climate ranges from humid continental in the north to humid subtropical in the south The southern tip of Florida is tropical, as is Hawaii

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Extreme weather is not uncommon the states bordering the Gulf of Mexico are prone to hurricanes, and most of the world's tornadoes occur within the country, mainly in the Midwest's Tornado Alley

Altogether, the government owns 28.8% of the country's land area. Most of this is protected, though some is leased for oil and gas drilling, mining, logging, or cattle ranching; 2.4% is used for military purposes.

The 2010 U.S. Census reported 308,745,538 residents; the U.S. Census Bureau's Population Clock projects the country's population now to be 311, 354, 000, including an estimated 11.2 million illegal immigrants.

third most populous nation in the world, after China and India United States is the only industrialized nation in which large population increases are projected

population growth rate is 0.98%, significantly higher than those of Western Europe, Japan, and South Korea

The United States has a very diverse population

Language Main article: Languages of the United States See also: Language spoken at Home (U.S. Census) Languages (2007) English (only) Spanish, incl. Creole Chinese French, incl. Creole Tagalog Vietnamese German Korean [Type text]

225.5 million 34.5 million 2.5 million 2.0 million 1.5 million 1.2 million 1.1 million 1.1 million

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English is the de facto national language. 80% of the population aged five years and older spoke only English at home. Spanish, spoken by 12% of the population at home, is the second most common language and the most widely taught second language

Religion Most Americans identify as Christian. The United States is officially a secular nation. According to a 2007 survey, 78.4% of adults identified themselves as Christian, down from 86.4% in 1990 Protestant denominations accounted for 51.3% Roman Catholicism, at 23.9%, was the largest individual denomination The study categorizes white evangelicals, 26.3% of the population, as the country's largest religious cohort The leading non-Christian faiths were Judaism (1.7%), Buddhism (0.7%), Islam (0.6%), Hinduism (0.4%), and Unitarian Universalism (0.3%) 16.1% of Americans described themselves as agnostic, atheist, or simply having no religion, up from 8.2% in 1990 Education American public education is operated by state and local governments, regulated by the United States Department of Education through restrictions on federal grants. [Type text]

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Children are required in most states to attend school from the age of six or seven (generally, kindergarten or first grade) until they turn eighteen (generally bringing them through twelfth grade, the end of high school)

some states allow students to leave school at sixteen or seventeen About 12% of children are enrolled in parochial or nonsectarian private school. Just over 2% of children are homeschooled. The United States has many competitive private and public institutions of higher education, as well as local community colleges with open admission policies

Of Americans twenty-five and older, 84.6% graduated from high school 52.6% attended some college, 27.2% earned a bachelor's degree 9.6% earned graduate degrees The basic literacy rate is approximately 99%. The United Nations assigns the United States an Education Index of 0.97, tying it for 12th in the world.

Health The United States life expectancy of 77.8 years at birth is a year shorter than the overall figure in Western Europe, and three to four years lower than that of Norway, Switzerland, and Canada Over the past two decades, the country's rank in life expectancy has dropped from 11th to 42nd in the world. The infant mortality rate of 6.37 per thousand likewise places the United States 42nd out of 221 countries, behind all of Western Europe Approximately one-third of the adult population is obese and an additional third is overweight [Type text]

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The obesity rate, the highest in the industrialized world, has more than doubled in the last quarter-century

The Texas Medical Center in Houston, the world's largest medical center The U.S. adolescent pregnancy rate, 79.8 per 1,000 women, is nearly four times that of France and five times that of Germany

Abortion, legal on demand, is highly controversial While the abortion rate is falling, the abortion ratio of 241 per 1,000 live births and abortion rate of 15 per 1,000 women aged 1544 remain higher than those of most Western nations.

The U.S. health care system far outspends any other nations, measured in both per capita spending and percentage of GDP

The World Health Organization ranked the U.S. health care system in 2000 as first in responsiveness, but 37th in overall performance

The United States is a leader in medical innovation In 2004, the non-industrial sector spent three times as much as Europe per capita on biomedical research

Crime and law enforcement Law enforcement in the United States is primarily the responsibility of local police and sheriff's departments, with state police providing broader services At the federal level and in almost every state, jurisprudence operates on a common law system State courts conduct most criminal trials; federal courts handle certain designated crimes as well as certain appeals from the state systems Among developed nations, the United States has above-average levels of violent crime and particularly high levels of gun violence and homicide.

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In 2007, there were 5.6 murders per 100,000 persons three times the rate in neighboring Canada

The U.S. homicide rate, which decreased by 42% between 1991 and 1999, has been roughly steady since.

The United States has the highest documented incarceration rate and total prison population in the world

At the start of 2008, more than 2.3 million people were incarcerated, more than one in every 100 adults. The current rate is about seven times the 1980 figure.

African American males are jailed at about six times the rate of white males and three times the rate of Hispanic males

Culture American cultural icons: apple pie, baseball, and the American flag. The United States is a multicultural nation, home to a wide variety of ethnic groups, traditions, and values mainstream American culture is a Western culture largely derived from the traditions of European immigrants with influences from many other sources, such as traditions brought by slaves from Africa. More recent immigration from Asia and especially Latin America has added to a cultural mix that has been described as both a homogenizing melting pot and a heterogeneous salad bowl. the United States has the highest individualism score Americans' self-images, social viewpoints, and cultural expectations are associated with their occupations to an unusually close degree United States has less social mobility than Canada and the Nordic countries

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Women now mostly work outside the home and receive a majority of bachelor's degrees

In 2007, 58% of Americans age 18 and over were married, 6% were widowed, 10% were divorced, and 25% had never been married

Same-sex marriage is contentious. Some states permit civil unions in lieu of marriage. Since 2003, several states have permitted gay marriage as the result of judicial or legislative action

Popular media The Hollywood Sign The world's first commercial motion picture exhibition was given in New York City in 1894 the U.S. film industry has largely been based in and around Hollywood, California Americans are the heaviest television viewers in the world and the average viewing time continues to rise, reaching five hours a day in 2006 The four major broadcast networks are all commercial entities Americans listen to radio programming, also largely commercialized, on average just over two-and-a-half hours a day Aside from web portals and search engines, the most popular websites are Facebook, YouTube, Wikipedia, Blogger, eBay, and Craigslist. The rhythmic and lyrical styles of African-American music have deeply influenced American music at large, distinguishing it from European traditions American pop stars such as Presley, Michael Jackson, and Madonna have become global celebrities.

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Income inequality in the United States Income inequality in the United States of America is the extent to which income, most commonly measured by household or individual, is distributed in an uneven manner 71 percent of American economists believe the distribution of income in the US should be more equal, and 81 percent feel that the redistribution of income is a legitimate role for government Conservative social scientists argue that income inequality is mainly the result of more workers in the average household and their age and education, and that the disappearance of the middle class is more statistical than real In a 2004 poll of 1,000 economists (from the AEA), a majority of polled economists favored "redistribution" One social scientist argues that without holding education, experience and industry constant, inferences to inequality are mere guesses. Household income The emergence of dual-earner households has had a substantial impact on increasing household income, especially among households in the upper 20% women into the labor force, the discrepancy between those households with one and those with multiple earners was amplified significantly the percentage of household with two or more income earners varied greatly across these three demographics, it is nearly identical for the 80 th and 95th percentile A large household in the upper quintile may have a lower standard of living than a small household

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Upper middle class household with one income earners may have a lower gross annual household income than a lower middle class household with two income earners

the mean household size in the US has decreased 20.8%, while income disparities have increased In 2003, the upper 20% household, who were home to roughly 25% of persons, earned 49.7% of all income before and 39.6% of income, after size adjustments

Conservatives commonly focused on the flaws of household income as a measure for standard of living in order to refute claims that income inequality is growing, becoming excessive or posing a problem for society

TECHNOLOGICAL ANALYSIS
In 1876, Alexander Graham Bell was awarded the first U.S. patent for the telephone. Thomas Edison's laboratory developed the phonograph, the first long-lasting light bulb, and the first viable movie camera. Nikola Tesla pioneered alternating current, the AC motor, and radio. In the early 20th century, the automobile companies of Ransom E. Olds and Henry Ford promoted the assembly line. The Wright brothers, in 1903, made the first sustained and controlled heavier-than-air powered flight. The textile industry, which had previously relied upon labor-intensive production methods, was also rife with potential for mechanization. The United States has been a leader in scientific research and technological innovation since the late 19th century. USA got advance technology in many sectors and fields like

Agriculture: Eli Whitney develops a machine to separate the seeds of short fibered cotton from the fibers. Farmers use large tractors running on fuel, and water that runs out of pipes. . These machines are powered by the technology of fuel that is pumped from inside the earth.

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Nuclear weapons: During World War II, the Manhattan Project developed nuclear weapons, ushering in the Atomic Age.

Broadband Internet access: Americans possess high levels of technological consumer goods, and almost half of U.S. households have broadband Internet access.

Research and development: the bulk of research and development funding, 64%, comes from the private sector. United States leads the world in scientific research papers and impact factor.

Textile: industry had adopted the spinning jenny, water frame, and spinning mule which greatly improved the efficiency and quality of textile manufacture The first power looms for woolens were installed in 1820, at Uxbridge, Massachusetts, by John Capron, of Cumberland, Rhode Island.

Turnpikes and canals: Small towns like Syracuse, New York, Buffalo, New York, and Cleveland, Ohio that lied along major canal routes boomed into major industrial and trade centers, while canal-building pushed some states like Pennsylvania, Ohio, and Indiana to the brink of bankruptcy.

Steamboats: developed one of the first high-pressure steam engines to manufacture and repair popular inventions.

Biotech crops: the primary developer and grower of genetically modified dairy, representing half of the world's biotech crops.

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Technological systems and infrastructure: began to construct roads and canals to connect the disparate parts of the nation.

Railroads: Trains came first with steam, then coal, and now gasoline. This has allowed trips to be made four times as fast as riding a horse.

Iron and steel-making: integrating a steam boiler and propulsion system. Bloomers forges were prevalent in the colonies and could produce small batches of iron to be smithies for local needs (horseshoes, axe blades, plowshares)

Telegraph and telephone: advances the railroad, telegraph & telephone, and internal combustion engine. United States Cellular Corporation announced its intention to deploy CDMA 1XRTT (Code Division Multiple Access) technology in all of its markets. This technology supports peak data speeds up to 144 kbps, and up to a doubling of voice capacity

Petroleum: By 1879, he controlled 90% of oil refined in the US. Standard Oil used pipelines to directly connect the Pennsylvanian oilfields with the refineries in New Jersey, Cleveland, Philadelphia, and Baltimore, rather than loading and unloading railroad tank cars, which enabled huge gains in efficiency and profitability

Electricity: Edison's patents on direct current generation and illumination allowed him to dominate the initial years of electric power distribution. introduced system for alternating current generators, transformers, motors, wires and lights that allowed for convenient voltage transformation and greater transmission efficiencies

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Automobiles: Evolution Industries 2XL and 3XL Belt Drive for 1991-2009 Sportster with Diamond Terminator Clutch. Utilizes Original Style Clutch Cable. Diamond Terminator Series D Diaphragm Clutch. With Steel Inner Drive Hub.

Banking, trading, and financial services: To finance the larger-scale enterprises required during this era, the Stockholder Corporation emerged as the dominant form of business organization. Corporations expanded by combining into trusts, and by creating single firms out of competing firms, known as monopolies.

Computers and information networks: American artisans developed their own apprenticeship system for educating and employing the young. Computers will have a permanent and enduring effect on country and t heir people. This impact will be most profound on the poor.

Health care and biotechnology: The private sector has been the focal point for biomedical research in the United States, and has played a key role in this achievement. The National Institutes of Health consists of 24 separate institutes supporting the prevention, detection, diagnosis, and treatment of diseases and disabilities.

DNA computing: DNA computing, or, more generally, molecular computing, is a fast developing interdisciplinary area. Research and development in this area concerns theory, experiments and applications of DNA computing.

Screen less hammer mill: The screen-less hammer mill uses air flow to separate small particles from larger ones, rather than a screen, and is thus more reliable which results in much more energy efficiency.

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Xtracycle: An Xtracycle is a load-carrying bicycle. An Xtracycle may be constructed by modifying an existing bicycle with an extension called a Free Radical or by custom-building an extended-tail bicycle frame.

BoseEinstein condensate: BoseEinstein condensate (BEC) is a state of matter of bosons confined in an external potential and cooled to temperatures very near to absolute zero (0 K, 273.15 C, or 459.67 F).

Nan imprint lithography: Nanoimprint lithography is a novel method of fabricating nanometer scale patterns. It is a simple nanolithography process with low cost, high throughput and high resolution. It creates patterns by mechanical deformation of imprint resist and subsequent processes

Scroll wheel: A scroll wheel, or mouse wheel, is a hard plastic or rubbery disc on a computer mouse that is used for scrolling up or down on a web page

Flash programming: Flash has become a popular method for adding animation and interactivity to web pages

Low plasticity burnishing: Low plasticity burnishing (LPB) is a method of metal improvement that provides deep, stable surface compressive residual stresses with little cold work for improved damage tolerance and metal fatigue life extension

Bait car: A bait car is a vehicle used by a law enforcement agency to capture car thieves. The vehicles are specially modified with features including GPS tracking and hidden cameras that record audio, video, time and date, which can all be remotely monitored by police

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Mars rover: Mars rover is a spacecraft which propels itself across the surface of Mars after landing. NASA built and funded the Phoenix Mars Lander. in 2007, a robotic spacecraft on a space exploration mission on Mars under the Mars Scout Program.

Digital video recorder: A digital video recorder is a device that records video in a digital format to a hard disk drive or other memory medium within a device.

PageRank: PageRank is a link analysis algorithm used by the Google Internet search engine that assigns a numerical weighting to each element of a hyperlinked set of documents, such as the World Wide Web, with the purpose of "measuring" its relative importance within the set

Virtual globe: A virtual globe is a 3D software model or representation of the Earth or another world. A virtual globe provides the user with the ability to freely move around in the virtual environment by changing the viewing angle and position

Torino scale: method for categorizing the impact hazard associated with nearEarth objects (NEOs) such as asteroids and comets.

Phase-change incubator: The phase-change incubator is a low-cost, lowmaintenance incubator to help test for microorganisms in water supplies. It uses small balls containing a chemical compound that, when heated and then kept insulated, will stay at 37C (approx. 99F) for 24 hours.

Microwave Anisotropy Probe: A microwave anisotropy probe, or Wilkinson Microwave Anisotropy Probe, measures the temperature of the Big Bang's remnant radiant heat.

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Self-balancing personal transporter: world's first two-wheeled, self-balancing, electric vehicle used for "personal transport

Artificial liver: world's first artificial liver which serves as a "bridge" between a damaged liver and a donated liver permanently transplanted into a human being, the artificial liver is an external device which also enables damaged liver to heal or recuperate until a donor can be found and transplanted

SERF: A spin-exchange relaxation-free (SERF) magnetometer achieves very high magnetic field sensitivity by monitoring a high density vapor of alkali metal atoms processing in a near-zero magnetic field

Fermionic condensate: A fermionic condensate is a super-fluid phase formed by fermionic particles at low temperatures.

HPV vaccine: The human papillomavirus (HPV) vaccine is a vaccine that prevents infection with certain species of human papillomavirus associated with the development of cervical cancer and genital warts.

Three-dimensional model rendering: Photosynth is a software application which analyzes digital photographs and generates what is known as a threedimensional model, a collection of photos and a point cloud of a photographed object.

Shingles vaccine: Zostavax is a live vaccine developed by Merck & Co. in 2006, shown to reduce the incidence of herpes zoster by 51.3% in a pivotal phase III study of 38,000 adults aged 60 and older who received the vaccine.

Trongs: Tongs are gripping and lifting tools which are made up of three limbs, or finger-channels, each with teeth on the end of them.

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Nanowire battery: A nanowire battery is a lithium-ion battery consisting of a stainless steel anode covered in silicon nanowires. Silicon, which stores ten times more lithium than graphite, allows a far greater energy density on a steel anode, thus reducing the mass of the battery

Bionic contact lens: A bionic contact lens is a digital contact lens worn directly on the human eye which in the future, scientists believe could one day serve as a useful virtual platform for activities such as surfing the World Wide Web, superimposing images on real-world objects, playing video games for entertainment, and for monitoring patients' medical conditions

Composite aircraft: Boeing 787 Dreamliner is the world's first jet airliner to use composite materials for most of its fuselage as well as raked wingtips which improve fuel economy, climb performance, and shorten takeoff field length.

Introduction of CANADA:

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Introduction Official name: Canada Capital: Ottawa Population: 31.5 million Currency: Canadian dollar Official language: English and French Date of independence, or formation date: 1867 Date when current borders were established: 1949 National day: July 1 Vehicle country identifying code: CDN Time zone (hours plus or minus from GMT): -3.5 to -8 International telephone dialling code: +1 Internet country identifying code: .ca Canada is the world's second-largest country, stretching
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north to Cape Columbia on Ellesmere Island, south to Lake Erie, and across six time zones from Newfoundland to the Pacific seaboard. The interior lowlands around Hudson Bay make up 80% of Canada's land area and include the vast Canadian Shield, with the plains of Saskatchewan and Manitoba and the Rocky Mountains to the west. The St. Lawrence, Yukon, Mackenzie, and Fraser Rivers are among the world's 40 largest. The Great LakesSt. Lawrence River lowlands are the most populous areas. An Inuit homeland, Nunavut, formerly the eastern part of the Northwest Territories, was created in 1999, covering nearly a quarter of Canada's land area. French-speaking Qubec's relationship with the rest of the country causes recurring constitutional arguments. Median age

Population pyramid in 2010

total: 39.5 years o male: 38.6 years o female: 40.4 years (2006)

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This is about the demographic features of the population of Canada, including population density, ethnicity, education level, health of the populace, economic status, religious affiliations and other aspects of the population, the People of Canada. Population of Canada: 31,612,895 (2006 Census). Population of Canada: 34,265,000

Religions

Top self-identified religious affiliations in Canada in 2001. Top Self-Identified Religious Affiliations in Canada[18][19][20] % change 1991 1991 2001 2001 (in number % number % numbers) Christian 22,468,260 83 22,799,645 77 -1.5 - Catholic 12,335,255 45.7 12,936,905 43.6 +4.8 - Protestant 9,427,675 34.9 8,654,850 29.2 -8.2 - United 3,093,120 11.3 2,839,125 9.5 -8.2 Church of
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Canada Anglican 2,188,110 8.0 2,035,495 6.8 Church of Canada - Baptist 663,360 2.4 729,475 2.4 - Lutheran 636,205 2.3 606,590 2.0 636,295 2.3 409,830 1.4 Presbyterian 436,435 1.6 369,475 1.2 Pentecostal 207,970 0.8 191,465 0.6 Mennonite Jehovah's 168,375 0.6 154,745 0.5 Witnesses 83,910 0.3 106,545 0.4 Methodist - Mormon 100,770 0.4 104,750 0.3 Salvation 112,345 0.4 87,785 0.3 Army Christian Reformed 84,685 0.3 76,665 0.3 Church in North America Christian and 59,365 0.2 66,280 0.2 Missionary Alliance 52,365 0.2 62,875 0.2 Adventists - Christian 387,395 1.4 479,620 1.6 Orthodox
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-7.0 +10.0 -4.7 -35.6 -15.3 -7.9 -8.1 +27.0 +3.9 -21.9

-9.5

+11.9

+20.1 +23.8

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- Greek 231,965 0.9 215,200 0.7 -7.1 Orthodox - Christian, not included 353,040 1.3 780,450 2.6 +121.1 elsewhere Other 1,148,060 4.3 1,988,635 6.7 +73.2 - Jewish 318,185 1.2 329,995 1.1 +3.7 - Muslim 253,265 0.9 579,640 2.0 +128.9 - Buddhist 163,415 0.6 300,345 1.0 +83.8 - Hindu 157,015 0.6 297,200 1.0 +89.3 - Sikh 147,440 0.5 278,410 0.9 +88.8 No religion 3,397,000 12.6 4,900,095 16.5 +44.2 Includes persons who report only "Christian", only "Protestant", and those in denominations less than 60,000 * For comparability purposes, 1991 data are presented according to 2001 boundaries.

Catholic includes Roman Catholic, Eastern Catholic, Polish National Catholic Church, and Old Catholic Other Religions also includes Bah' Faith, Eckankar, Jainism, Shinto, Taoism, Zoroastrianism, Aboriginal belief systems, Neo-Paganism, Wicca, Unity - New Thought - Pantheist, Scientology, Rastafari movement, New Age, Gnostic, Satanism, et cetera No Religion includes Atheism, Agnosticism, Humanism, et cetera

However, a more recent research in 2005 indicates that the non-religious group has risen significantly. Phil Zuckerman, an Associate Professor of Sociology at Pitzer College writes of several academic sources who have in recent years placed atheism rates in Canada between 19% and 30%. Languages Language used most often at work:
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English: 78.3% French: 21.7% Non-official languages: 2.0%

Languages by mother tongue:

English: 58.2% French: 21.7% Non-official languages: 19.0%

Chinese: 3.1% Italian: 1.4% German 1.2% Spanish: 1.2% Punjabi: 1.1% Tagalog: 0.9% Tamil: 0.8% Gujarati:0.6%

Languages by language used most often at home:

English: 67.1% French: 21.5% Non-official languages: 11.4%

Literacy

definition: age 15 and over can read and write

The literacy rate of Canada was 99% in 2009.

Education expenditures

5.2% of total GDP

City populations

As of 2006, Canada's 13 largest cities (metro

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areas) have a combined population of 17,885,000 Canada has 100 cities with 45,000 inhabitants or more for a combined population of 20,687,000 Canada has 230 cities with 15,000 inhabitants or more

PEST Analysis of CANADA.

A PEST analysis is concerned with the environmental influences on a business. The acronym stands for the Political, Economic, Social and Technological issues that could affect the strategic development of a business. Identifying PEST influences
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is a useful way of summarizing the external environment in which a business operates. PEST Analysis The PEST Analysis is a framework that service uses to scan the external macroenvironment in which it operates. PEST is an acronym for the following factors: Political factors Economic factors Social factors, and Technological factors. PEST factors play an important role in the value creation opportunities of a strategy. However they are usually beyond the control of the corporation and must normally be considered as either threats or opportunities.

Political Head of state: H.M. Queen Elizabeth II

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AT THE LAST ELECTION

Canada is a federal multiparty democracy. Profile A major political shift in Canada has taken place with the eclipse of the once-powerful PCP, three victories for Jean Chrtien and the LP (1993, 1997, and 2000), and an eventual realignment on the right, based on the emergence of the populist Reform Party (RP) in the western provinces. However, the concurrent trend away from Canada-wide politics, toward parties representing strong regional interests, left the LP with few seats outside its strongholds in the east. The Bloc Qubcois (BQ), espousing the separatist cause at federal level, was the second-largest party in the federal parliament between 1993 and 1997. The struggle to unite the conservative opposition culminated with the formation of the Conservative Party of Canada in 2003. Chrtien stood down in December 2003 to allow a new generation to take the LP into the next elections, headed by former finance minister Paul Martin.

Main Political Issues

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The unity of the state Opposition to federal government is not confined to Qubec the 1997 and 2000 federal elections confirmed support for greater autonomy for Canada's western provinces but Canada has agonized over separatist tendencies in francophone Qubec almost since the foundation of the state. Qubec did not take part in the 1997 Calgary conference, where a Canadian unity framework was agreed by the other provinces, together with recognition of Qubec's "unique character." A series of earlier proposals, to recognize Qubec as a distinct society and strengthen the powers of all the federal provinces, had failed to gain ratification or been rejected by the electorate. The ambition of the Parti Qubcois (PQ) to hold yet another referendum on separatism, despite losing those held in 1980 and 1995, was derailed when the party lost provincial elections to the LP in 2003. The popularity of the PQ suffered as voters were keen to focus on everyday issues, rather than the promise of more constitutional wrangling. Any future vote on secession will anyway require federal approval and the agreement of at least seven of the ten provinces, while the 2000 Clarity Act set strict criteria for the validation of any prosecession referendum.
North American integration

The North American Free Trade Agreement (NAFTA), a hotly debated issue in Canada when it was being negotiated in the early 1990s, produced a trade boom, especially for Ontario. However, Canadians have problems competing for foreign investment with Mexico, where labor costs, social welfare, and environmental standards are lower. Most Canadians oppose such ideas as a currency union and ever closer integration with the US.

ECONOMIC ANALYSIS

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Canada has the ninth largest economy in the world (measured in US dollars at market exchange rates), is one of the world's wealthiest nations, and is a member of the Organization for Economic Co-operation and Development (OECD) and Group of Eight (G8). As with other developed nations, the Canadian economy is dominated by the service industry, which employs about three quarters of Canadians. Canada is unusual among developed countries in the importance of the primary sector, with the logging and oil industries being two of Canada's most important. Canada also has a sizable manufacturing sector, centered in Central Canada, with the automobile industry especially important. Canada has one of the highest levels of economic freedom in the world. Today Canada closely resembles the U.S. in its market-oriented economic system, and pattern of productions of August 2011, Canada's national unemployment rate stood at 7.2%, as the economy continues its recovery from the effects of the 2007-2010 global financial crisis. In May 2010, provincial unemployment rates varied from a low of 5.0% inSaskatchewan to a high of 13.8% in Newfoundland and Labrador.According to the Forbes Global 2000 list of the world's largest companies in 2008, Canada had 69 companies in the list, ranking 5th next to France As of 2008, Canadas total government debt burden is the lowest in the G8. International trade makes up a large part of the Canadian economy, particularly of its natural resources. In 2009, agricultural, energy, forestry and mining exports accounted for about 58% of Canada's total exports. Machinery, equipment, automotive products and other manufactures accounted for a further 38% of exports in 2009. In 2009, exports accounted for approximately 30% of Canada's GDP. The United States is by far its largest trading partner, accounting for about 73% of exports and 63% of imports as of 2009. Canada's combined exports and imports ranked 8th among all nations in 2006. Canada has considerable natural resources spread across its varied regions. As an example, in British Columbia the forestry industry is of great importance, while the oil and gas industry is important in Alberta, Saskatchewan and Newfoundland and Labrador. Northern
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Ontario is home to a wide array of mines, while the fishing industry has long been central to the character of the Atlantic provinces, though it has recently been in steep decline. Canada has mineral resources of coal, copper, iron ore, and gold. These primary industries are increasingly becoming less important to the overall economy. Only some 4% of Canadians are employed in these fields, and they account for 6.2% of GDP.They are still paramount in many parts of the country. Many, if not most, towns in northern Canada, where agriculture is difficult, exist because of a nearby mine or source of timber. Canada is a world leader in the production of many natural resources such as gold, nickel, uranium, diamonds and lead. Several of Canada's largest companies are based in natural resource industries, such as EnCana, Cameco, Goldcorp, and Barrick Gold. The vast majority of these products are exported, mainly to the United States. There are also many secondary and service industries that are directly linked to primary ones. For instance one of Canada's largest manufacturing industries is thepulp and paper sector, which is directly linked to the logging industry. The large reliance on natural resources has several effects on the Canadian economy and Canadian society. While manufacturing and service industries are easy to standardize, natural resources vary greatly by region. This ensures that differing economic structures developed in each region of Canada, contributing to Canada's strong regionalism. At the same time the vast majority of these resources are exported, integrating Canada closely into the international economy. Howlett and Ramesh argue that the inherent instability of such industries also contributes to greater government intervention in the economy, to reduce the social impact of market changes. Such industries also raise important questions of sustainability. Despite many decades as a leading producer, there is little risk of depletion. Large discoveries continue to be made, such as the massive nickel find at Voisey's Bay. Moreover the far north remains largely undeveloped as producers await higher prices or new technologies as many operations in this region are not yet cost effective. In recent decades Canadians have become less willing to accept the environmental destruction associated with exploiting natural resources. High wages and Aboriginal land claims have also curbed
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expansion. Instead many Canadian companies have focused their exploration and expansion activities overseas where prices are lower and governments more accommodating. Canadian companies are increasingly playing important roles in Latin America, Southeast Asia, and Africa. The exploitation of renewable resources have raised concerns in recent years. After decades of escalating overexploitation the cod fishery all but collapsed in the 1990s, and the Pacific salmon industry also suffered greatly. The logging industry, after many years of activism, has in recent years moved to a more sustainable model. Province/Territory Alberta British Columbia Canada Manitoba New Brunswick Unemployment rate (%) (As of July 2011)[19] 5.5 7.3 7.2 5.7 10.1

Newfoundland and Labrador 11.9 Northwest Territories Nova Scotia Nunavut

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Ontario Quebec Saskatchewan Yukon Relations with the U.S.

7.5 7.2 4.9 4.4

Canada United States relations Canada and the United States share a common trading relationship. Canada's job market continues to perform well along with the US, reaching a 30 year low in the unemployment rate in December 2006, following 14 consecutive years of employment growth.[31]

Flags of Canada and the United States The United States is by far Canada's largest trading partner, with more than $1.7 billion CAD in trade per day in 2005. In 2009 73% of Canada's exports went to the United States, and 63% of Canada's imports were from
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the United States.[32] Trade with Canada makes up 23% of the United States' exports and 17% of its imports. By comparison, in 2005 this was more than U.S. trade with all countries in the European Union combined,[34] and well over twice U.S. trade with all the countries of Latin America combined. [35] Just the two-way trade that crosses the Ambassador Bridge between Michigan and Ontario equals all U.S. exports toJapan. Canada's importance to the United States is not just a border-state phenomenon: Canada is the leading export market for 35 of 50 U.S. states, and is the United States' largest foreign supplier of energy. Bilateral trade increased by 52% between 1989, when the U.S.-Canada Free Trade Agreement (FTA) went into effect, and 1994, when the North American Free Trade Agreement (NAFTA) superseded it.[citation needed] Trade has since increased by 40%. NAFTA continues the FTA's moves toward reducing trade barriers and establishing agreed-upon trade rules. It also resolves some long-standing bilateral irritants and liberalizes rules in several areas, including agriculture, services, energy, financial services, investment, and government procurement. NAFTA forms the largest trading area in the world, embracing the 405 million people of the three North American countries. The largest component of U.S.-Canada trade is in the commodity sector. The U.S. is Canada's largest agricultural export market, taking well over half of all Canadian food exports.[36] Similarly, Canada is the largest market for U.S. agricultural goods, with nearly 20% of American food exports going to its northern neighbour.[citation needed] Nearly two-thirds of Canada's forest products, includingpulp and paper, are exported to the United States; 72% of Canada's total newsprint production also is exported to the U.S. At $73.6 billion in 2004, U.S.-Canada trade in energy is the largest U.S. energy trading relationship, with the overwhelming majority ($66.7 billion) being exports from Canada. The primary components of U.S. energy trade with Canada are petroleum, natural gas, and electricity. Canada is the United States' largest oil supplier and the fifth-largest energy producing country in the world. Canada provides about 16% of U.S. oil imports and 14% of total U.S. consumption of natural gas. The United States and Canada's national
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electricity grids are linked, and both countries share hydropower facilities on the western borders. While most of U.S.-Canada trade flows smoothly, there are occasionally bilateral trade disputes, particularly in the agricultural and cultural fields. [citation needed] Usually these issues are resolved through bilateral consultative forums or referral to World Trade Organization (WTO) or NAFTA dispute resolution.[citation needed] In May 1999, the U.S. and Canadian governments negotiated an agreement on magazines that provides increased access for the U.S. publishing industry to the Canadian market. The United States and Canada also have resolved several major issues involving fisheries. By common agreement, the two countries submitted a Gulf of Maine boundary dispute to the International Court of Justice in 1981; both accepted the court's 12 October 1984 ruling which demarcated the territorial sea boundary. A current issue between the United States and Canada is the ongoing softwood lumber dispute, as the U.S. alleges that Canada unfairly subsidizes its forestry industrd In 1990, the United States and Canada signed a bilateral Fisheries Enforcement Agreement, which has served to deter illegal fishing activity and reduce the risk of injury during fisheries enforcement incidents. The U.S. and Canada sined a Pacific Salmon Agreement in June 1999 that settled differences over implementation of the 1985 Pacific Salmon Treaty for the next decade. Canada and the United States signed an aviation agreement during Bill Clinton's visit to Canada in February 1995, and air traffic between the two countries has increased dramatically as a result. The two countries also share in operation of the St. Lawrence Seaway, connecting the Great Lakes to the Atlantic Ocean. The U.S. is Canada's largest foreign investor and the most popular destination for Canadian foreign investments; at the end of 2007, the stock of U.S. direct investment in Canada was estimated at $293 billion, while Canadian direct investment (stock) in the United States was valued at $213 billion.[38][39] U.S.
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FDI

accounts

for

59.5%

of

total foreign

direct

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investment in Canada while Canadian FDI in the U.S. accounts for 10% (5th largest foreign investor).US investments are primarily directed at Canada's mining and smelting industries, petroleum, chemicals, the manufacture of machinery and transportation equipment, and finance, while Canadian investment in the United States is concentrated in manufacturing, wholesale trade, real estate, petroleum, finance, and insurance and other services.
SOCIAL ANALYSIS

Social Income distribution: Demographics, Population growth rates, Age distribution: Overall population growth isexpected to average 1.2% per year, somewhat dampened by population aging and low levels of net inter-provincial migration. Vancouver Island-Coast Region Economic Analysis 2007-2008 Economic Analysis of British Columbia May 2007 Is The regions population is older than that of the province as a whole, with relatively fewer children and relatively more seniorsLooking ahead, population growth through 2008 is forecast to be led by people aged 50 to 69, 20 to 29 and those over 84. Meanwhile the population aged 30 to 44 and 5 to 14 is forecast to decline. Vancouver Island-Coast Region Economic Analysis of British Columbia May 2007 Labour / social mobility: The regions labour market source population is forecast to grow at 1.3% per year through 2008, following a 1.8% increase in 2006. Source population is defined as the civilian, non-institutionalized population aged 15 years and olderLabour force participation in this region is expected to rise to over 65% of the source population in 2008. Vancouver Island-Coast Region Economic Analysis 2007-2008 Economic Analysis of British

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Lifestyle changes: life style in Canada is fast changing since the new trends and cultures are collaborating with the present life style. Life style of the people is high and sophisticated with good purchasing power and economically stable. Education: literacy rate in Canada is 99%, education is a must and important factor Health consciousness & welfare, feelings on food safety:

Technological Training farms for diversified Good Food Promise food production: There are some partial trainingso it is in development inside the labour pool business plan. Availability to source local inputs for the Good Food Promise food: Will show a gap. Where is the fertilizer going to come from when the shift hits the fan? Bio-fuel development has reduced the fertilizer inventories and there could be a shortage as soon as spring 2008. Evidence-based research on increased nutrients and reduced toxins in Good Food Promise food: Vital For Life document quote here. Government climate change research spending: Hints from the Feb 2007 budget? Industry focus on carbon footprint reduction technological effort: BC government Climate Change team and the food carbon footprint that contributes 30% of the greenhouse gases: Can we get a quote from Andrew Weaver at UVic? Rate of technology reducing carbon footprint transfer: BCSEA is on the lead in trying to train renewable energy alternatives to biofuel to reduce carbon footprint. Life cycle and speed of technological obsolescence: Acknowledge the infancy stages and need for research and field trials.

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Company overview:
Type Cooperative Founded 1946 Headquarters Anand, India Chairman, Key people Industry Products Revenue Employees Slogan
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Gujarat

Co-

operative

Milk

Marketing

Federation Ltd. (GCMMF) Dairy See complete products listing. Template:Revenue$1 billion USD (in 2006-07) 2.41 million milk producers The Taste of India

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Website

http://www.amul.com/

Amul (Anand Milk-producers Union Limited), formed in 1946, is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand. Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January 2006, Amul plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade. Amul is the largest dairy brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07) .Currently Amul has 2.6 million producer members with milk collection average of 10.16 million litres per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, USA, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but

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now it has fresh plans of flooding the Japanese markets. Other potential markets being considered include Sri Lanka. Dr Verghese Kurien, the chairman of the GCMMF, is recognised as the man behind the success of Amul. History Amul was formally registered on December 14, 1946. The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand. Some cite the origin as an acronym to (Anand Milk Producers Union Limited). The Amul revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channeled towards economic prosperity. Situation of farmers: Over five decades ago, the life of an average farmer in Kheda District was very much like that of his/her counterpart anywhere else in India. His/her income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Milk producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand often milk went sour, especially in the summer season, as producers had to physically carry milk in individual containers. Private traders and middlemen controlled the marketing and distribution system for the milk. These middlemen decided the prices and the off-take from the farmers by the season. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throwaway prices. In this situation, the private trader made a killing. Moreover, the government at that time had given monopoly rights to Polson Dairy
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(around that time Polson was the most well known butter brand in the country) to collect milk from Anand and supply to Bombay city in turn (about 400 kilometers away). India ranked nowhere amongst milk producing countries in the world in 1946. Gradually, the realization dawned on the farmers with inspiration from then nationalist leaders Sardar Vallabhbhai Patel (who later became the first Home Minister of free India) and Morarji Desai (who later become the Prime Minister of India) and local farmer, freedom fighter and social worker Tribhovandas Patel, that the exploitation by the trader could be checked only if they marketed their milk themselves. Amul was the result of the realization that they could pool up their milk and work as a cooperative. Setting up of Kaira District Co-operative Milk Producers' Union: The Kaira District Co-operative Milk Producers' Union Limited (KDCMPUL) began pasteurizing milk for the Bombay Milk Scheme in June 1948. By the end of 1948, more than 400 farmers joined in more Village Society, and the quantity of milk handled by one Union increased from 250 to 5,000 liters a day. Dr. Verghese Kurien, fed up being at the government creamery in Anand, which held no challenge, volunteered to help Shri Tribhovandas Patel, the Chairman of KDCMPUL, in setting up a processing plant. This marked the birth of AMUL.The success of Amul was instrumental in launching the White Revolution that resulted in increased milk production in India. It is officially termed as Operation Flood by Amul. The breakthrough technology of spray-drying and processing buffalo milk, developed by Mr. H.M. Dalaya, was one of the key factors that contributed to the Revolution.
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Setting Up of Gujarat Cooperative Milk Marketing Federation: In 1954, Kaira District Co-operative Milk Producers Union built a plant to convert surplus milk produced in the cold seasons into milk powder and butter3. In 1958, a plant to manufacture cheese and one to produce baby dairy were added. Subsequent years saw the addition of more plants to produce different products. In 1973, the milk societies/district level unions decided to set up a marketing agency to market their products. This agency was the Gujarat Cooperative Milk Marketing Federation (GCMMF). It was registered as a co-operative society on 9 July 1973. GCMMF Today: GCMMF is India's largest dairy products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat, which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products, which are good value for money. GCMMF markets and manages the Amul brand. From mid-1990's Amul has entered areas not related directly to its core business. Its entry into ice cream was regarded as successful due to the large market share it was able to capture within a short period of time - primarily due to the price differential and the brand name. It also entered the Pizza business, where the base and the recipes were made available to restaurant owners who could price it as low as 30 rupees per pizza when the other players were charging upwards of 100 rupees. In September 2007, Amul emerged as the leading Asian brand according to a survey by Synovate to find out Asia's top 1000 Brands.

Members:
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producers' Union No. of Producer Members: No. of Village Societies: Milk collection (Total - 200607): Milk collection (Daily Average 2006-07): Milk Drying Capacity: Cattlefeed manufacturing Capacity: 594 Mts. per day 2640 Mts per day 6.5 million litters 2.6 million 12,792 2.38 billion litters

Total Milk handling capacity: 10.16 million litters per day

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing Award for 2007.

Collection of milk: Every day Amul collects 447,000 liters of milk from 2.12 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods worth Rs 6 crore (Rs 60 million) to over 500,000 retail outlets across the country. Its supply chain is easily one of the most complicated in the world. How do managers at Amul prevent the milk from souring?
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Walk in to any Amul or Gujarat Cooperative Milk Marketing Federation (GCMMF) office, and you may or may not see a photograph of Mahatma Gandhi, but you will certainly see one particular photograph. It shows a long line of Gujarati women waiting patiently for a union truck to come and collect the milk they have brought in shining brass matkas. The picture is always prominently displayed. The message is clear: never forget your primary customer. If you don't, success is certain. The proof A unique, Rs 2,200 crore (Rs 22 billion) enterprise. Organization structure: It all started in December 1946 with a group of farmers keen to free themselves from intermediaries, gain access to markets and thereby ensure maximum returns for their efforts. Based in the village of Anand, the Kaira District Milk Cooperative Union (better known as Amul) expanded exponentially. It joined hands with other milk cooperatives, and the Gujarat network now covers 2.12 million farmers, 10,411 village level milk collection centers and fourteen district level plants (unions) under the overall supervision of GCMMF. There are similar federations in other states. Right from the beginning, there was recognition that this initiative would directly benefit and transform small farmers and contribute to the development of society. Markets, then and even today, are primitive and poor in infrastructure. Amul and GCMMF acknowledged that development and growth could not be left
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to market forces and that proactive intervention was required. Two key requirements were identified. The first, that sustained growth for the long term would depend on matching supply and demand. It would need heavy investment in the simultaneous development of suppliers and consumers. Second, that effective management of the network and commercial viability would require professional managers and technocrats. To implement their vision while retaining their focus on farmers, a hierarchical network of cooperatives was developed, which today forms the robust supply chain behind GCMMFs endeavors The vast and complex supply chain stretches from small suppliers to large fragmented markets. Management of this network is made more complex by the fact that GCMMF is directly responsible only for a small part of the chain, with a number of third party players (distributors, retailers and logistics support providers) playing large roles. Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low consumer prices supported by a low cost system. Introducing higher value products: Beginning with liquid milk, GCMMF enhanced the product mix through the progressive addition of higher value products while maintaining the desired growth in existing products.

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Despite competition in the high value dairy product segments from firms such as Hindustan Lever, Nestle and Britannia, GCMMF ensures that the product mix and the sequence in which Amul introduces its products is consistent with the core philosophy of providing milk at a basic, affordable price. Umbrella brand: The network follows an umbrella branding strategy. Amul is the common brand for most product categories produced by various unions: liquid milk, milk powders, butter, ghee, cheese, cocoa products, sweets, ice-cream and condensed milk. Amul's sub-brands include variants such as Amulspray, Amulspree, Amulya and Nutramul. The edible oil products are grouped around Dhara and Lokdhara, mineral water is sold under the Jal Dhara brand while fruit drinks bear the Safal name. By insisting on an umbrella brand, GCMMF not only skillfully avoided inter-union conflicts but also created an opportunity for the union members to cooperate in developing products. Managing the supply chain: Even though the cooperative was formed to bring together farmers, it was recognised that professional managers and technocrats would be required to manage the network effectively and make it commercially viable. Coordination:
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Given the large number of organizations and entities in the supply chain and decentralized responsibility for various activities, effective coordination is critical for efficiency and cost control. GCMMF and the unions play a major role in this process and jointly achieve the desired degree of control. Buy-in from the unions is assured as GCMMFs board approves the plans. The board is drawn from the heads of all the unions, and the boards of the unions comprise of farmers elected through village societies, thereby creating a situation of interlocking control. The federation handles the distribution of end products and coordination with retailers and the dealers. The unions coordinate the supply side activities. These include monitoring milk collection contractors, the supply of animal feed and other supplies, provision of veterinary services, and educational activities. Managing third party service providers: From the beginning, it was recognized that the unions' core activity lay in milk processing and the production of dairy products. Accordingly, marketing efforts (including brand development) were assumed by GCMMF. All other activities were entrusted to third parties. These include logistics of milk collection, distribution of dairy products, sale of products through dealers and retail stores, provision of animal feed, and veterinary services.

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It is worth noting that a number of these third parties are not in the organized sector, and many are not professionally managed with little regard for quality and service. This is a particularly critical issue in the logistics and transport of a perishable commodity where there are already weaknesses in the basic infrastructure. Establishing best practices: A key source of competitive advantage has been the enterprise's ability to continuously implement best practices across all elements of the network: the federation, the unions, the village societies and the distribution channel. In developing these practices, the federation and the unions have adapted successful models from around the world. It could be the implementation of small group activities or quality circles at the federation. Or a TQM program at the unions. Or housekeeping and good accounting practices at the village society level. More important, the network has been able to regularly roll out improvement programs across to a large number of members and the implementation rate is consistently high. For example, every Friday, without fail, between 10.00 a.m. and 11.00 a.m., all employees of GCMMF meet at the closest office, be it a department or a branch or a depot to discuss their various quality concerns.

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Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with a process check at the end to record how the meeting was conducted. Similar processes are in place at the village societies, the unions and even at the wholesaler and C&F agent levels as well. Examples of benefits from recent initiatives include reduction in transportation time from the depots to the wholesale dealers, improvement in ROI of wholesale dealers, implementation of Zero Stock Out through improved availability of products at depots and also the implementation of Just-in-Time in finance to reduce the float. Kaizens at the unions have helped improve the quality of milk in terms of acidity and sour milk. (Undertaken by multi-disciplined teams, Kaizens are highly focussed projects, reliant on a structured approach based on data gathering and analysis.) For example, Sabar Union's records show a reduction from 2.0% to 0.5% in the amount of sour milk/curd received at the union. The most impressive aspect of this large-scale roll out is that improvement processes are turning the village societies into individual improvement centers. Technology and e-initiatives: GCMMF's technology strategy is characterized by four distinct components: new products, process technology, and complementary assets to enhance milk production and e-commerce.

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Few dairies of the world have the wide variety of products produced by the GCMMF network. Village societies are encouraged through subsidies to install chilling units. Automation in processing and packaging areas is common, as is HACCP certification. Amul actively pursues developments in embryo transfer and cattle breeding in order to improve cattle quality and increases in milk yields. GCMMF was one of the first FMCG (fast-moving consumer goods) firms in India to employ Internet technologies to implement B2C commerce. Today customers can order a variety of products through the Internet and be assured of timely delivery with cash payment upon receipt. Another e-initiative underway is to provide farmers access to information relating to markets, technology and best practices in the dairy industry through net enabled kiosks in the villages. GCMMF has also implemented a Geographical Information System (GIS) at both ends of the supply chain, i.e. milk collection as well as the marketing process. Farmers now have better access to information on the output as well as support services while providing a better planning tool to marketing personnel. Mascot: The Amul baby

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Since 1967 Amul products' mascot has been the very recognisable "Amul baby" (a chubby butter girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with the equally recognisable tagline Utterly Butterly Delicious Amul.The mascot was first used for Amul lite. But in recent years in a second wave of ad campaign for Amul products, she has also been used for other product like ghee and milk. Currently Amul is in the process of getting the Amul Girl registered as the oldest ad campaign in the Guinness Book Of World Records. Although there seems to be no competition for this mascot, Amul Corporation is still doing further research to confirm their claim. In Popular Culture: The establishment of Amul is also known as The White Revolution. The White Revolution of India inspired the notable Indian film-maker Shyam Benegal to base a movie on. The motion picture Manthan was made during the late 1960s and early 1970s, and starred: Smita Patil, Girish Karnad, Naseeruddin Shah, and Amrish Puri. The White Revolution ushered an era of plenty from a measly amount of milk production and distribution. Aside from the great measurable success that this project was, it also demonstrated the power of "collective might". A small set of poor farmers of Kheda district in Gujarat had the vision and foresight to act in a way that was good for the society and not for the self alone

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4Ps of GCMMF LTD: Product: AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages. Amul products have been in use in millions of homes since 1946. Amul lite, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading dairy brand in India. (Turnover: Rs. 42.78 billion in 2006-07). Today Amul is a symbol of many things. Of highquality products sold at reasonable prices. Of the genesis of a vast cooperative network. Of the triumph of indigenous technology. Of the marketing savvy of a farmers' organisation. And of a proven model for dairy development.
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Bread Spreads

Amul lite Amul Lite Low Fat Breadspread

Amul Cooking Butter Cheese Range:

Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Kool Amul Kool Cafe Kool Koko A delight to Chocolate Lovers. Delicious Chocolate taste Nutramul Energy DrinkA drink for Kids - provides energy to suit the needs of growing Kids Amul Kool Chocolate Milk

Milk Drinks:

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Amul Kool Flavoured Bottled Milk Amul Kool Flavoured Tetra Pack Amul Masti Spiced Buttermilk Amul introduces the Best Thirst Quenching Drink

Powder Milk:

Amul Spray Infant Milk Dairy Still, Mother's Milk is Best for your baby Amul Instant Full Cream Milk Powder A dairy in your home Sagar Skimmed Milk Powder Which is especially useful for diet preparations or for use by people on low calorie and high protein diet.

Sagar Tea Coffee Whitener Amulya Dairy Whitener The Richest, Purest Dairy Whitener

Fresh Milk:

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Amul Fresh Milk This is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience. Amul Gold Milk Amul Taaza Double Toned Milk Amul Lite Slim and Trim Milk Amul Fresh Cream Amul Shakti Toned Milk

For Cooking: Amul / Sagar Pure Ghee Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience.

Cooking Butter Amul Malai Paneer Ready to cook paneer to make your favourite recipes! Utterly Delicious Pizza Mithai Mate Sweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste

Masti Dahi

Desserts:
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Amul Ice Creams Premium Ice Cream made in various varieties and flavours with dry fruits and nuts.

Amul Shrikhand A delicious treat, anytime Amul Mithaee Gulab Jamuns Pure Khoya Gulab Jamums...best served piping hot. Amul Chocolates The perfect gift for someone you love. Amul Lassee Amul Basundi

Health Drink:

Nutramul (Malted Milk Dairy made from malt extract has the highest protein content among all the brown beverage powders sold in India.)

Amul Shakti Health Dairy Drink (Available in Kesar-Almond and Chocolate flavours).

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Place (The distribution network):

Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. This practice is consistent with GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle operations.
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Distribution Structure for dairy product:

Member Union/ (Manufacturer)

Company Depot

Distributor

Retailer

Customer

Distribution structure for Ice-Cream:

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Member union (Manufacturer)

Company Hub

Company Depot

Distributor

Retailer

Customer

All India they have 45 sales Depot, 6 Zonal offices in chanai, Bombay, Kolkotta, Gowhati, Delhi, Ahemdabad. Also 3500 distributors and more than 2,50,000 retail outlets. In Karnataka they have 2 sales Depot one in Dharwad(north) and one in Bangalore(south), these comes under chanai zonal office, and 115 distributors. In North-Karnataka sales depot is in near Dharwad. They cover places from chitradurg to Bidar total 25 district. They have 62 distributors in northKarnataka, in Hubli and Dharwad they have 2 distributors. In Hubli Narmada trading company Ballari galli Hubli
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In Dharwad- Shri veerbhadreshwar Marketing Back side of vijaya theater Dharwad Price: At the time Amul was formed, consumers had limited purchasing power, and modest consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money. Promotional Activity: Advertising

An Amul lite ad on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in between George Fernandes and Vajpayee. Its advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting jovially on the latest news or current events. The pun in her words has been popular. The Amul ads are one of the longest running ads based on a theme, now vying for the Guinness records for being the longest running ad campaign ever. Sylvester daCunha, was the managing director of the advertising agency, ASP, that created the campaign in 1967 whose charm has endured fickle public opinion, gimmickry and all else.
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Sales Turn over: Amul has recorded a 30% growth in turnover this year, despite stiff competition from multinational companies and big domestic players in the milk and dairy business. Gujarat Cooperative Milk Marketing Federation Ltd, which markets Amul products, is expecting a turnover of Rs 3,600 crore during 2005-06 fromRs 2,900 crore last year. B M Vyas, Managing Director, talks to P N V Nair, Editor - Dairy & Beverage News, about Amul's expanding business outside Gujarat, its promotional campaigns, its growth targets at home and abroad Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 US $ (in million) 355 400 450 455 493 493 500 500 575 616 672 850
1050

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Entertainment: Books

The Amul India Story : Ruth Herediya Management Kurien Style : MV Kamath The Unfinished Dream : V Kurien

Feature Films

Sardar: The Iron Man of India : A film by Ketan Mehta Manthan: A Film by Shyam Benegal To view the movie click here.

Awards:

Ramkrishna Bajaj National Qality Award-2003 Amul - The Taste Of India (Gcmmf)Receives International Cio 100 Award For Resourcefulness

Rajiv Gandhi National Quality Award - 1999

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Product Details
AMUL LITE Gujarat Cooperative Milk Marketing Federation Anand - India Description : Unlike Butter & Margarine, Amul Lite is a low-fat, low-calorie & lowcholesterol bread spread, hence a healthier substitute. It contains 26% less fat and calorie content as compared to butter or margarine. features : Since Amul lite is low in calories, you can maintain your slim-trim shape without sacrificing on the taste. Amul lite is a low-fat and low-cholesterol product and less cholesterol means less chance of heart diseases. It is specially suited for elderly people & those with health complications for whom the consumption of high cholesterol and high saturated fat products is restricted. Amul Lite is low in saturated fats & high in PUFA for a "healthy heart". Amul Lite contains "Omega-6 & Omega-3 fats" which maintain healthy cholesterol levels. Amul Lite is fortified with Vitamins A & D, essential for good vision & healthy skin It is manufactured in a fully automated, ISO9000 certified plant under strict hygienic conditions. Product Applications : Amul Lite is ideal spread for toasts, sandwiches & bread. It can be used for topping on parathas, pav-bhaji, pulao, khichri, soups etc and also for household baking, preparation of cakes etc.

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AMUL LITE : A Low Fat Low Cholesterol Bread Spread

Unlike Butter & Margarine, Amul Lite is a low-fat, lowcalorie & low-cholesterol bread spread, hence a healthier substitute. It contains 26% less fat and calorie content as compared to butter or margarine.

PRODUCT COMPOSITION Per 100g Total fat % Milk Fat % Vegetable Fat % Cholesterol Total Calories AMUL LITE 59 10 49 26 mg 531 BUTTER 80 80 0 210 720 MARGARINE 80 0 80 0 720

Special Features
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Since Amul lite is low in calories, you can maintain your slim-trim shape without sacrificing on the taste. Amul lite is a low-fat and low-cholesterol product and less cholesterol means less chance of heart diseases. It is specially suited for elderly people & those with health complications for whom the consumption of high cholesterol and high saturated fat products is restricted. Amul Lite is low in saturated fats & high in PUFA for a "healthy heart". Amul Lite contains "Omega-6 & Omega-3 fats" which maintain healthy cholesterol levels. Amul Lite is fortified with Vitamins A & D, essential for good vision & healthy skin It is manufactured in a fully automated, ISO9000 certified plant under strict hygienic conditions.

Product Specification

The product is certified by AGMARK for quality

Product Application Amul Lite is ideal spread for toasts, sandwiches & bread. It can be used for topping on parathas, pav-bhaji, pulao, khichri, soups etc and also for household baking, preparation of cakes etc. So, you can now gorge on all the delights without putting on those extra calories, thanks to Amul Lite

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SWOT analysis of Amul (GCMMF) Strengths 1. The company is having Indian origin thus creating feeling of oneness in the mind of the customers. 2. Largest dairy brand in india. 3. worlds largest pouched milk brand. 4. Annual turnover of 1504mn 5. It manufactures only milk and milk products, which is purely vegetarian thus providing quality confidence in the minds of the customers. 6. It is aiming at rural segment, which covers a large area of loyal customers, which other companies had failed to do. 7. People are quite confident for the quality products provided by Amul. 8. Amul has its base in India with its butter and so can easily promote chocolates without fearing of loses. 9. The prices are comparatively cheap as compared to other companies.

Weaknesses 1. There are various big players in the chocolate market, which acts as major competitors restricting their growth. 2. Lack of capital invested as compared to other companies
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in international market. 3. Strong dependency on weak infrastructure. 4. Alliance with third parties who do not belong to organized sector.

Opportunities 1. There is a lot of potential for growth and development in international market. 2. Penetrate in international market. 3. Diversify product portfolio to enter new product.

Threats 1. The major threat is from other companies who hold the majority share of consumers in International market. 2. There exists no brand loyalty in the dairy market and consumers frequently shift their brands. 3. Growing prices of milk and milk products.

MARKET POTENTIAL
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USA
As of August 13, 2011, the United States has a total resident population of 311,955,000, making it the third most populous country in the world. It is a very urbanized population, with 82% residing in cities and suburbs as of 2008 (the worldwide urban rate is 50.5. This leaves vast expanses of the country nearly uninhabited.California and Texas are the most populous states,as the mean center of United States population has consistently shifted westward and southward. New York City is the most populous city in the United States. The total fertility rate in the United States estimated for 2009 is 2.01 children per woman, which is below the replacement fertility rate of approximately 2.1. However, U.S. population growth is among the highest in industrialized countries, since the vast majority of these have below-replacement fertility rates and the U.S. has higher levels of immigration. The United States Census Bureau shows population increases ranging between 0.85% and 0.89% for the twelve-month periods ending in 2009.Nonetheless, though high by industrialized country standards, this is below the world average annual rate of 1.19%. There were 155.6 million females in the United States in 2009. The number of males was 151.4 million. At age 85 and older, there were more than twice as many women as men. People under 20 years of age made up over a quarter of the U.S. population (27.3%), and people age 65 and over made up one-eighth (12.8%) in 2009. The national median age was 36.8 years. Racially, the U.S. has a White American majority. The American population more than tripled during the 20th centuryat a growth rate of about 1.3% a yearfrom about 76 million in 1900 to 281 million in 2000. It reached the 200 million mark in 1967, and the 300 million mark on October 17, 2006.Currently, population growth is fastest among minorities as a whole, and according to the Census Bureau's estimation for 2005, 45% of American children under the age of 5 belonged to minority groups. Hispanic and Latino Americans accounted for almost half (1.4 million) of the national population growth of 2.9 million between July 1, 2005, and July 1, 2006. Immigrants and their U.S.-born descendants are expected to provide most of the U.S. population gains in the decades ahead. The Census Bureau projects a U.S. population of 439 million in 2050, which is a 46% increase from 2007 (301.3 million).However, the United Nations projects a U.S. population of 402 million in 2050, an increase of 32% from 2007 (the UN projects a gain of 38% for the world at large). In either case, such growth is unlike most European countries, especially Germany, Russia, Italy, and Greece, or Asian countries such as Japan or South Korea, whose populations are slowly declining, and whose fertility rates are below replacement. [Type text]

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The economy of the United States is the world's largest national economy. Its nominal GDP was estimated to be nearly $14.7 trillion in 2010,approximately a quarter of nominal global GDP.[15][16] Its GDP at purchasing power parity was also the largest in the world, approximately a fifth of global GDP at purchasing power parity. The U.S. economy also maintains a very high level of output per capita. In 2009, it was estimated to have a per capita GDP (PPP) of $46,381, the 6th highest in the world. The U.S is the largest trading nation in the world. Its three largest trading partners as of 2010 are Canada, China and Mexico. Historically, the U.S. economy has maintained a stable overall GDP growth rate, a low unemployment rate, and high levels of research and capital investment funded by both national and, because of decreasing saving rates, increasingly by foreign investors. It has been the world's largest national economy since the 1870s and remains the world's largest manufacturer, representing 19% of the world's manufacturing output. In 2009, consumer spending, coupled with government health care spending constituted 70% of the American economy.About 30% of the entire world's millionaire population reside in the United States (in 2009).Furthermore, 34% of the world's billionaires are American (in 2011). The US is also home to the world's largest stock exchange, the New York Stock Exchange. It also boasts the world's largest gold reserves and the world's largest gold depository, the New York Federal Reserve Bank. The United States is also home to 139 of the world's 500 largest companies, which is almost twice that of any other country. A large contributor to the country's success has also been a very strong and stable currency. The US dollar holds about 60% of world reserves, as compared to its top competitor, the euro, which controls about 24%. Since the 1960s, the United States economy absorbed savings from the rest of the world. The phenomenon is subject to discussion among economists. The US is by far the most heavily invested-into country in the world, with foreign investments made in the US measuring almost $2.4 trillion, which is more than twice that of any other country. The US is also by far the largest investor in the world, with US investments in foreign countries totaling over $3.3 trillion, which is almost twice that of any other country. Like other developed countries, the United States faces retiring baby boomers who have already begun withdrawing money from Social Security; however, the American population is young and growing when compared to Europe or Japan. The United States public debt is in excess of $14 trillion and continues to grow at a rate of about $5.48 billion each day by direct calculation between December 31, 2010 and July 31, 2011. Total public and private debt was $50.2 trillion at the end of the first quarter of 2010, or 3.5 times GDP. Domestic financial assets totaled $131 trillion and domestic financial liabilities totaled $106 trillion. Due in part to the amount of both public and private investment, the economy of the United States is regarded as a type of mixed economy. The American labor market has attracted immigrants from all over the world and in 2009 ranked 16th in terms of net migration rate. The United States is ranked fourth, down from first in 2008-2009 due to the economic crisis, in the Global Competitiveness Report.The country is one of the world's largest and most influential financial markets, home to [Type text]

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major stock and commodities exchanges like NASDAQ, NYSE, AMEX, CME, and PHLX.

Vital statistics
Birth rate: 10.28 births/1,000 population (2009 est.) Death rate: 7.74 deaths/1,000 population (2009 est.) Net migration rate: 5.63 migrant(s)/1,000 population (2009 est.) Sex ratio:

at birth: 1.06 male(s)/female under 15 years: 1.05 male(s)/female 15 - 64 years: 0.83 male(s)/female 65 years and over: 0.78 male(s)/female total population: 0.91 male(s)/female (2009 est.)

Infant mortality rate: 5.04 deaths/1,000 live births (2009 est.)

total population: 81.23 years male: 78.69 years female: 83.91 years (2009 est.)

Age structure

0-14 years: 16.1% (male 2,761,711/female 2,626,836) 15-64 years: 68.7% (male 11,633,950/female 11,381,735) 65 years and over: 15.2% (male 2,220,189/female 2,862,787) (2010 est.)

Total fertility rate: 1.58 children born/woman (2009 est.)

Population projection
US Census Bureau, 2010 est.

2020: 36,387,000 2030: 38,565,000 2040: 40,070,000 2050: 41,136,000

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Canada Facts
Most searched for facts:
Canadas Population: 34.4 million (2011) Number of Households: 12.4 million (2006 census) Size of Canada: 9,984,670 sq. km, 3,855,103 sq. mi. Annual Births: 381,382 (to June 30 2010) Life Expectancy: 80.7 Years (2007) Immigration to Canada: 559,105 arrivals (2009) Death rate (deaths/1,000 population)

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Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Canada 7.39 7.47 7.54 7.61 7.67 7.73 7.8 7.86 7.61 7.74 7.87 7.98

Birth rate:
Country 2000 Canada 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 11.41 11.21 11.09 10.99 10.91 10.84 10.78 10.75 10.29 10.28 10.28 10.28

Definition of Birth rate: This entry gives the average annual number of births during a year per 1,000 persons in the population at midyear; also Literacy rate Canada 99.0

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Urban or Rural?
Canadas population is primarily urban based. Data from the 2006 Census revealed that 79.6% of Canadians or 23,585,940 people resided in urban centres, with the remainder, 20.4%, living in rural locations. Ontario and British Columbia reported the highest concentrations of urban dwellers in 2006. Not surprisingly, the largest proportion of Canadas rural population lived in the Territories. Nunavut was the highest at 67.6%. The CCSD continues its traditional examination of issues affecting metropolitan areas by conducting a detailed study of Urban Poverty in Canada. Using a variety of Statistics Canada databases to obtain local-level data, this report examines the factors underlying poverty and the groups most affected by it in different urban communities across the country. [Type text]

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Poverty by Postal Code: This research, conducted by the CCSD for the United Way of Greater Toronto, documents the widening income gap over the last two decades and the growth of high-poverty neighbourhoods throughout the GTA.

MARKET POTENTIAL. Over the years the demand for butter in Canada has decreased resulting in a surplus of butter. In 1965 the per capita consumption of butter in Canada was 8.23 Kg which decreased by about 70% to 2.66 Kg in 1994. Previous research indicates that consumers are switching from butter to margarine due to concerns about heart disease and high cholesterol levels in butter. Therefore, a market study was conducted in Montreal to estimate the potential demand for a new product called "modified" butter which would create 50% less cholesterol in the body than regular butter. When the concept of "modified" butter was introduced, out of 157 respondents about 80% of the respondents indicated that they would buy "modified" butter. Also, the total quantity of margarine [Type text]

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demanded in a month decreased by 47% and the regular butter demand decreased by 85%. The market share of "modified" butter comes to about 67%. The average of the price that the consumers are willing to pay for a kilogram of "modified" butter is $7.50. A detailed cost analysis shows that the production cost of ``modified'' butter at the experimental level is high, but the average costs show a decreasing trend when the scale of production is increased. If the economies of scale were to continue along the derived cost curves, 7 tons of "modified" butter would have to be produced to reach the breakeven point of $7.50/Kg cost of production. This shows the industrial potential of producing large quantities of ``modified'' butter by taking advantage of the economies of scale. Furthermore, the overall sales of butter (regular butter plus ``modified'' butter) would increase by about 25 % which would boost the consumption of butter in Canada.

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Feasibility of product INDUSTRY PROFILE: India having encouragingly grown from a level of scarcity to surplus has enabled to create economic liberalization paving way to rapid industrialization where a good many investors find new opportunities in the market. The effects of Operation Flood Programme are more appraised by the World Bank in its recent evaluation report. It has been proved that an investment of Rs. 20 billion over 20 years under Operation Flood Programme in 70s & 80s has contributed in increase of Indias milk production by 40 Million Metric Tonne (MMT) i.e. from about 20 MMT in pre- Operation Flood period to more than 60 MMT at the end of Operation flood Programme. Thus, an incremental return of Rs. 400 billion annually have been generated by an investment of Rs. 20 billion over a period of 20 years. This has been the most beneficial project funded by the World Bank anywhere in the World. One can continue to see the effect of these efforts as Indias milk production continues to increase and now stands at 90 MMT. Despite this fourfold increase in milk production, there has not been drop in the prices of milk during the period and has continued to grow. Due to this movement, the countrys milk production tripled between the years 1971 to 1996. Similarly, the per capita milk consumption doubled from 111 gms per day in 1973 to 222 gms per day in 2000. Thus, these cooperatives have not just been instrumental in economic development of the rural society of India but it also has provided vital ingredient for improving health & nutritional requirement of the Indian society. Very few industries of India have such parallels of development encompassing such a large population. These dairy cooperatives have been responsible in uplifting the social & economic status of the women folk in particular as women are basically involved in dairying while the men are busy with their agriculture. This has also provided a definite source of income to the women leading to their economic emancipation.

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The three-tier Amul Model has been instrumental in bringing about the White Revolution in the country. As per the assessment report of the World Bank on the Impact of Dairy Development in India, the Anand Pattern has demonstrated the following benefits: The role of dairying in poverty reduction The fact that rural development involves more than agricultural production The value of national ownership in development The beneficial effects of higher incomes in relieving the worst aspects of poverty The capacity of dairying to create jobs The capacity of dairying to benefit the poor at low cost The importance of commercial approach to development The capacity of single-commodity projects to have multi-dimensional impacts The importance of getting government out of commercial enterprises The importance of market failure in agriculture The power & problems of participatory organisations The importance of policy

We move to the year 2008. The dairy industry in India and particularly in the State of Gujarat looks very different. India for one has emerged as the largest milk producing country in the World. Gujarat has emerged as the most successful State in terms of milk and milk product production through its cooperative dairy movement. The Kaira District Cooperative Milk Producers Union Limited, Anand has become the focal point of dairy development in the entire region and AMUL has emerged as one of the most recognized brands in India, ahead of many international brands. Today, we have around 176 cooperative dairy Unions formed by 1,25,000 dairy cooperative societies having a total membership of around 13 million farmers on the same pattern, who are processing and marketing milk and milk products profitably, be it Amul in Gujarat or Verka in Punjab, Vijaya in Andhra Pradesh or a Nandini in Karnataka. This entire process has created more than 190 dairy processing plants spread all over India with large investments by these farmers institutions. These cooperatives today collect
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approximately 23 million kgs. of milk per day and pay an aggregate amount of more than Rs.125 billion to the milk producers in a year. A strong and dynamic dairy processing industry is important for diversification and commercialization of dairy products. It ensures value addition to the dairy products, generates employment, enhances income of farmers and creates surplus for export of dairy. It is assessed that both processed dairy exports and value-added dairy products will grow faster in the coming years enabling dairy-processing industry in India to earn profits in leaps and bounds over the next five years.. While India has an abundant supply of dairy, the dairy processing industry is still nascent: Despite these low volumes, the processed dairy industry ranks fifth in size in the country, representing 6.3 per cent of GDP. It accounts for 13 per cent of the country's exports and 6 per cent of total industrial investment. The industry is estimated to grow at 9-12 per cent, on the basis of an estimated GDP growth rate of 6-8 per cent, during the tenth five-year plan period. Value addition of dairy products is expected to increase from the current 8 per cent to 35 per cent by the end of 2025. Dairy , which is currently around 2 per cent of total production will increase to 10 per cent by 2010 and to 25 per cent by 2025. The industry size is estimated at US$ 70 billion, including US$ 22 billion of value added products. AMUL Dairy is happy that the percentage of working women is rising at a brisk pace, as a result of which the demand for dairy products has increased. The AMUL brand has a great presence in the markets where the number of women contribution in milk producing is more. And AMUL, is launching a number of new products different markets. The company also plans to widen its distribution which aims to familiarise consumers in the world with the brand.

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Brand width AMUL as a name that stands for ''priceless'' it is indeed a reasonable charging brand. AMUL's competitive advantage is in its leadership in butter. AMUL Dairy had entered in the beverages ,spreads and non carbonated drinks and dairy products under the flagship brand AMUL. Dairy is Changing Life Style In Recent years there has been a noticeable rise in being health conscious and focus on fitness. The main reason is down fall due to health failures and obesity. The women in the family are turning more choosy while selecting a perfect breakfast for the family and even males need a perfect physique thus even they look out for a combination of taste and health. The Reasons of Success Of the product: Cost is not very high Time costs ; convenience in maintaining health without work outs as it a diet and health conscious product. Variety; Due to packaging techniques these dairy are available at all times of the year. The markets for such a product have a huge market potential, with changing picture of the households and the woman about the health of their family. AMUL the trusted and house hold name 100% Natural AMUL products are 100% natural do not contains preservatives and use only the finest, most authentic ingredients. Unparalleled Taste and Flavour Every sector of dairy divisions butter is known for the TASTE OF INDIA

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Uncompromising Quality Amul is ISO 9001-2000, ISO 22000 and HACCP certified.. Maintains quality standards from sourcing ingredients to processing and packaging. Technology

Use of the latest technology to preserve the quality standards from sourcing ingredients to processing and packaging. Ramkrishna Bajaj National Qality Award-2003 for quality checks and maintenance.

Vegetarianism All AMUL products are 100% vegetarian.

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LEVEL OF COMPETITION Industry Leaders IN US Land O'Lakes Inc, which was the largest butter-producing firm in the United States in 2010, was also one of the largest Midwest dairy cooperatives. This co-op, which originally had represented farmers in obtaining the best milk prices, became a manufacturer and marketer of butter and other dairy products. Established in 1921, Land O'Lakes led the retail butter industry in 2010. Headquartered in Arden Hills, Minnesota, Land O'Lakes has the number one brand of butter in the United States and markets more than 600 dairy products. The company's total revenues in 2009 were $10.4 billion. Other top butter producers in the United States included Dairy Farmers of America (DFA). DFA had approximately 17,000 members nationwide, with a combined herd size of about 1.8 million dairy cows. These suppliers, who had about 30 production sites around the country, had revenues of about $8 billion in 2009 and were a major supplier of Dean Foods. The largest organic, farmer-owned cooperative in the United States, was Wisconsin-based Organic Valley, which had more than 1,200 farmers as members in 34 states. Organic Valley posted revenues of $528 million in 2008. Organic Valley's sales climbed 250 percent between 2003 and 2008. Another leader in the industry, Stonyfield Farm of Londonderry, New Hampshire, had a partnership with Paris, France-based Groupe Danone, and celebrated its 25th anniversary in 2008

current Conditions
In the late 1990s and early 2000s, America actually experienced a shortage of butter and record prices for milk butterfat. Although production increased by 3 percent in 2000, sales continued to outpace output, which pushed prices even higher. In the fall of 2001, retail butter prices jumped to between $4 and $5 per pound as butterfat prices peaked at $2.22. While butterfat prices
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had declined to $1.05 by mid-2002, retail prices remained high. According to an August 2002 issue of Dairy Field, "Butter consumption was enjoying a modest revival in

the late 1990s, but high prices at the retail level have put a damper on that." Higher prices also had the effect of boosting sales of private label butter, which held a 46.1 percent share of the butter market in 2002. Sales of private label butter, typically cheaper than name brand butter, grew 20.6 percent between 2001 and 2002, reaching $615.9 million. During that time period, total butter sales grew 15.3 percent to $1.33 billion.

Industry Leaders

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The largest butter producing firm in the United States in 2002 was also among the largest of the Midwest dairy cooperatives: Land O'Lakes Inc. This co-op, which had originated to represent farmers in obtaining the best milk prices, grew to become a manufacturer and marketer of butter and other dairy products. Established in 1921, Land O'Lakes led the retail butter industry in 2002 with a 32.4 percent market share. Headquartered in Arden Hills, Minneapolis, Land O'Lakes has the number one brand of butter in the United States and markets more than 600 dairy products. Butter sales in 2002 grew 6.5 percent to $432 million. Challenge Dairy Products, a unit of California Dairies Inc., held a distant second place to Land O'Lakes, with 4.7 percent of all U.S. butter sales. By the late 1990s, the West Coast had begun replacing the Midwest as the leading producer of dairy products. Many distributors blamed Midwest farmers' reluctance to modernize.

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Land O'Lakes Inc is the main competitor in USA its strength are it is a well known company in US. Very much established, it has a huge market share, known for years. Amul can target with its penetrating price and taste to eat up the market in USA.

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COMPETITIORS IN CANADA. Kraft All Natural How do we make Canada's favourite BUTTER? To get Kraft BUTTER's delicious peanutty taste we buy high quality peanuts, put them through 3 different quality checks and roast them to perfection to bring out their best roasted flavour! After they pass through Krafts special milling process, the mixture is placed in our recognizable jar and sealed with Krafts foil flavour seal for an unbeatably rich smooth BUTTER taste. Did you know Peanuts arent actually nuts at all. Theyre legumes, like beans and peas, and grow underground. The average Canadian consumes nearly 3 kilograms of peanuts and BUTTER per year. BUTTER is popular! 4 out of 10 consumers say BUTTER is one of their favourite foods. Although a 100,000 year old fossilized peanut was found in China, Canadians had longer to wait for their favourite roasted peanutty taste. Kraft BUTTER was introduced to Canada in 1960. In 1962 Kraft Butter took the number one position in the Canadian butter market, becoming Canadas most popular brand. In 2010 Kraft BUTTER marks 50 great years in the Canadian market place. To celebrate, Smooth and Crunchy will be travelling across Canada, sharing hugs, to generate

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even more support for Canadian Food Banks. To fight hunger across Canada, Kraft BUTTER created the Spread the Feeling campaign! By collecting hugs at live events or online, Kraft donates 1 jar of 500g Kraft BUTTER to a local food bank.

www.spreadthefeeling.ca. Varieties

How does Canada's favourite BUTTER brand create the rich roasted taste in new All Natural BUTTER? We select only quality peanuts and roast them to perfection before blending and sealing fresh in the jar. Best of all, its low in saturated fat, free of cholesterol, lactose and gluten. With All Natural BUTTERs the oil separation naturally occurs. For best texture, stir thoroughly when you get the product home from the store then keep refrigerated to avoid separation. You can keep it at room temperature (no safety issues), however you'll have to stir it each time to blend the oils.

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KRAFT is the main competitor in CANADA its strength are it is a well known BRAND. Very much established, it has a huge market share, known for years. Targeted the perception of masses Amul can target with its penetrating price and taste to eat up the market in Canada , but here it even has to come up with ads and jingles tat focuses healthy and perfect diet with butter.

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Cost-benefit analysis Cost-benefit analysis (CBA) is an economic decision-making approach.CBA is used in the assessment of whether a proposed project, programs or policy is worth doing, or to choose between several alternative ones. It involves comparing the total expected costs of each option against the total expected benefits, to see whether the benefits outweigh the costs, and by how much. In CBA, benefits and costs are expressed in money terms, and are adjusted for the time value of money, so that all flows of benefits and flows of project costs over time are expressed on a common basis in terms of their "present value." Closely related, but slightly different, formal techniques include cost-effectiveness analysis, cost-utility analysis, economic impact analysis, fiscal impact analysis and Social Return on Investment (SROI) analysis. It is an analysis of the cost effectiveness of different alternatives in order to see whether the benefits outweigh the costs and by how much. The aim is to gauge the efficiency of the interventions relative to each other and the status quo. There are numerous similar methods of analyzing costs, benefits and risks associated with a decision or plan. The general procedure involved is as follows: Cost - Benefit 1. Define, or breakdown the plan / decision /process into its elements by drawing up a flowchart or list of inputs, outputs, activities and events. 2. Calculate, research or estimate the cost and benefit associated with each element. (Include if possible direct, indirect, financial and social costs and benefits) 3. Compare the sum of the costs with the sum of the benefits. Cost Analysis There are two types of cost: Direct cost- is incurred in entering and setting up operation in the foreign market selected.

Opportunity cost- is profit the company would have earned by entering the alternative.

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Illustration Cost Of Product XXX +Margin To Company XXX +Logistic Charges XXX +Margin To The Distributor Of XXX Indonesia & Pakistan =Price For The Consumer XXXX

To determine the price for the consumers in the markets of Indonesia & Pakistan the above cost structure will be followed:To determine the final cost of the product in the international market: Firstly we add the margin to the cost of the production Secondly we will add the logistic charges: The transportation charges from the start point of our warehouse to the warehouse of the Distributors the importing nations These charges will be paid directly to the logistic company who will play the whole role of the Export of the product Thirdly we will add we will add margin to the distributors of Indonesia & Pakistan. Finally we will arise to the price at which the product should be sold. Benefit Analysis Following are the benefit that a company gets by entering in to the foreign market Increase in sales and profits Lower acquisition and manufacturing cost due to economies if large scale production. Competitive advantage Opportunity to achieve synergy

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Risk and uncertainty Risk associated with the outcome of projects is also usually taken into account using probability theory. This can be factored into the discount rate (to have uncertainty increasing over time), but is usually considered separately. Particular consideration is often given to risk aversion - that is, people usually consider a loss to have a larger impact than an equal gain, so a simple expected return may not take into account the detrimental effect of uncertainty. Uncertainty in the CBA parameters (as opposed to risk of project failure etc.) is often evaluated using a sensitivity analysis, which shows how the results are affected by changes in the parameters. The accuracy of the outcome of a costbenefit analysis depends on how accurately costs and benefits have been estimated. Inaccurate costbenefit analyses likely to lead to inefficient decisions, as defined by Pareto and Kaldor-Hicks efficiency .These outcomes (almost always tending to underestimation unless significant new approaches are overlooked) are to be expected because such estimates: Rely heavily on past like projects (often differing markedly in function or size and certainly in the skill levels of the team members) Rely heavily on the project's members to identify (remember from their collective past experiences) the significant cost drivers. Rely on very crude heuristics to estimate the money cost of the intangible elements Are unable to completely dispel the usually unconscious biases of the team members (who often have a vested interest in a decision to go ahead) and the natural psychological tendency to "think positive" (whatever that involves)

The discipline of Benefits Realization Management seeks to both increase the rigor of benefit estimation and manage benefits throughout a project or program to ensure incorrect predictions of benefit are identified early and corrective action can be taken swiftly. Another challenge to costbenefit analysis comes from determining which costs should be included in an analysis (the significant cost drivers). This is often controversial because organizations or interest groups may think that some costs should be included or excluded from a study. [Type text]

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In the field of health economics, some analysts think costbenefit analysis can be an inadequate measure because willingness-to-pay methods of determining the value of human life can be subject to bias according to income inequity. They support use of variants such as cost-utility analysis and quality-adjusted life year to analyze the effects of health policies.

Benefit - Risk 1. Rank the elements into a hierarchy that reflects their impact of their potential success / failure on the whole process. If the variation in the potential impact of the ranked elements is significant, then: 2. Assign weighting values to each element. 3. Estimate the likelihood of success or failure of each element. 4. Multiply the likelihood of success or failure for each element by its weighting value. 5. Compare the risk (number 4) with the costs and benefits associated with the sum of the costs with the sum of the benefits. Risks Analysis Just as there are reasons to get into global markets, and benefits from global markets, there are also risks involved in locating companies in certain countries. Each country may have its potentials; it also has its woes that are associated with doing business with major companies. Some of the rogue countries may have all the natural minerals but the risks involved in doing business in those countries exceed the benefits. Some of the risks in international business are: Strategic Risk: The ability of a firm to make a strategic decision in order to respond to the forces that are a source of risk. These forces also impact the competiveness of a firm. Porter defines them as: threat of new entrants in the industry, threat of substitute goods and services, intensity of competition within the industry, bargaining power of suppliers, and bargaining power of consumers. Operational Risk: This is caused by the assets and financial capital that aid in the dayto-day business operations. The breakdown of machineries, supply and demand of the resources and products, shortfall of the goods and services, lack of perfect logistic and inventory will lead to inefficiency of production. By controlling costs, unnecessary waste will be reduced, and the process improvement may enhance the lead-time, reduce variance and contribute to efficiency in globalization. Political Risk: The political actions and instability may make it difficult for companies to operate efficiently in these countries due to negative publicity and impact created by individuals in the top government. A firm cannot effectively operate to its full capacity in order to maximize profit in such an unstable country's political turbulence. A new and hostile government may replace the friendly one, and hence expropriate foreign assets. Country Risk: The culture or the instability of a country may create risks that may make it difficult for multinational companies to operate safely, effectively, and efficiently. [Type text]

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Some of the country risks come from the governments' policies, economic conditions, security factors, and political conditions. Solving one of these problems without all of the problems (aggregate) together will not be enough in mitigating the country risk. Technological Risk: Lack of security in electronic transactions, the cost of developing new technology, and the fact that these new technology may fail, and when all of these are coupled with the outdated existing technology, the result may create a dangerous effect in doing business in the international arena. Environmental Risk: Air, water, and environmental pollution may affect the health of the citizens, and lead to public outcry of the citizens. These problems may also lead to damaging the reputation of the companies that do business in that area. Economic Risk: This comes from the inability of a country to meet its financial obligations. The changing of foreign-investment or/and domestic fiscal or monetary policies. The effect of exchange-rate and interest rate make it difficult to conduct international business. Financial Risk: This area is affected by the currency exchange rate, government flexibility in allowing the firms to repatriate profits or funds outside the country. The devaluation and inflation will also impact the firm's ability to operate at an efficient capacity and still be stable. Most countries make it difficult for foreign firms to repatriate funds thus forcing these firms to invest its funds at a less optimal level. Sometimes, firms' assets are confiscated and that contributes to financial losses. Although the benefits in international business exceed the risks, firms should take a risk assessment of each country and to also include intellectual property, red tape and corruption, human resource restrictions, and ownership restrictions in the analysis, in order to consider all risks involved before venturing into any of the countries.

1. AMUL LITE AMUL LITE is a product for health conscious people and is available at a reasonable price 20 rs for 100gm pack . 95 rs for 500 gm pack and 175 rs for 1kg pack.

Products names and capacity/ month 1 AMUL LITE

Raw materials 1)Butter, salt

Production cost Rupees 20/per 100gm

Net profit Un disclosed

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Foreign Market Entry Modes

Foreign market entry modes differ in degree of risk they present, the control and commitment of resources they require and the return on investment they promise. There are two major types of entry modes: equity and non-equity modes. The non-equity modes category includes export and contractual agreements The equity modes category includes: joint venture and wholly owned subsidiaries. Exporting Direct exports Direct exports represent the most basic mode of exporting, capitalizing on economies of scale in production concentrated in the home country and affording better control over distribution. Direct export works the best if the volumes are small. Large volumes of export may trigger protectionism. Types of Direct Exporting. Sales representatives represent foreign suppliers/manufacturers in their local markets for an established commission on sales. Provide support services to a manufacturer regarding local advertising, local sales presentations, customs clearance formalities, legal requirements. Manufacturers of highly technical services or products such as production machinery, benefit the most form sales representation.

Importing distributors purchase product in their own right and resell it in their local markets to wholesalers, retailers, or both. Importing distributors are a good market entry strategy for products that are carried in inventory, such as toys, appliances, prepared food

Advantages of Direct Exporting:

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Control over selection of foreign markets and choice of foreign representative companies Good information feedback from target market Better protection of trademarks, patents, goodwill, and other intangible property Potentially greater sales than with indirect exporting

Disadvantages of Direct Exporting:

Higher start-up costs and higher risks as opposed to indirect exporting Greater information requirements Longer time-to-market as opposed to indirect exporting[7].

Indirect exports Indirect exports is the process of exporting through domestically based export intermediaries. The exporter has no control over its products in the foreign market. Types of Indirect Exporting: Export trading companies (ETCs) provide support services of the entire export process for one or more suppliers. Attractive to suppliers that are not familiar with exporting as ETCs usually perform all the necessary work: locate overseas trading partners, present the product, quote on specific enquiries, etc.

Export management companies (EMCs) are similar to ETCs in the way that they usually export for producers. Unlike ETCs, they rarely take on export credit risks and carry one type of product, not representing competing ones. Usually, EMCs trade on behalf of their suppliers as their export departments

Export merchants are wholesale companies that buy unpackaged products from suppliers/manufacturers for resale overseas under their own brand names. The advantage of export merchants is promotion. One of the disadvantages for using export merchants result in presence of identical products under different brand names and pricing on the market, meaning that export merchants activities may hinder manufacturers exporting efforts.

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Confirming houses are intermediate sellers that work for foreign buyers. They receive the product requirements from their clients, negotiate purchases, make delivery, and pay the suppliers/manufacturers. An opportunity here arises in the fact that if the client likes the product it may become a trade representative. A potential disadvantage includes suppliers unawareness and lack of control over what a confirming house does with their product.

Nonconforming purchasing agents are similar to confirming houses with the exception that they do not pay the suppliers directly payments take place between a supplier/manufacturer and a foreign buyer

Advantages of Indirect Exporting: Fast market access Concentration of resources for production Little or no financial commitment. The export partner usually covers most expenses associated with international sales Low risk exists for those companies who consider their domestic market to be more important and for those companies that are still developing their R&D, marketing, and sales strategies. The management team is not distracted No direct handle of export processes.

Disadvantages of Indirect Exporting: Higher risk than with direct exporting Little or no control over distribution, sales, marketing, etc. as opposed to direct exporting Inability to learn how to operate overseas Wrong choice of market and distributor may lead to inadequate market feedback affecting the international success of the company Potentially lower sales as compared to direct exporting, due to wrong choice of market and distributors by export partners

Those companies that seriously consider international markets as a crucial part of their success would likely consider direct exporting as the market entry tool. Indirect exporting is preferred by companies who would want to avoid financial risk as a threat to their other goals.

Licensing
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Summarizing, in this foreign market entry mode, a licensor in the home country makes limited rights or resources available to the licensee in the host country. The rights or resources may include patents, trademarks, managerial skills, technology, and others that can make it possible for the licensee to manufacture and sell in the host country a similar product to the one the licensor has already been producing and selling in the home country without requiring the licensor to open a new operation overseas. The licensor earnings usually take forms of one time payments, technical fees and royalty payments usually calculated as a percentage of sales. As in this mode of entry the transference of knowledge between the parental company and the licensee is strongly present, the decision of making a international license agreement depend on the respect the host government show for intellectual property and on the ability of the licensor to choose the right partners and avoid them to compete in each other market. Licensing is a relatively flexible work agreement that can be customized to fit the needs and interests of both, licensor and licensee. Following are the main advantages and reasons to use an international licensing for expanding internationally:

Obtain extra income for technical know-how and services Reach new markets not accessible by export from existing facilities Quickly expand without much risk and large capital investment Pave the way for future investments in the market Retain established markets closed by trade restrictions Political risk is minimized as the licensee is usually 100% locally owned Is highly attractive for companies that are new in international business.

On the other hand, international licensing is a foreign market entry mode that presents some disadvantages and reasons why companies should not use it as: Lower income than in other entry modes Loss of control of the licensee manufacture and marketing operations and practices dealing to loss of quality Risk of having the trademark and reputation ruined by a incompetent partner The foreign partner can also become a competitor by selling its production in places where the parental company is already in.

Franchising
The Franchising system can be defined as: A system in which semi-independent business owners (franchisees) pay fees and royalties to a parent company (franchiser) in return for the right to become identified with its trademark, to sell its products or services, and often to use its business format and system. [Type text]

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Compared to licensing, franchising agreements tends to be longer and the franchisor offers a broader package of rights and resources which usually includes: equipments, managerial systems, operation manual, initial trainings, site approval and all the support necessary for the franchisee to run its business in the same way it is done by the franchisor. In addition to that, while a licensing agreement involves things such as intellectual property, trade secrets and others while in franchising it is limited to trademarks and operating know-how of the business Advantages of the international franchising mode: Low political risk Low cost Allows simultaneous expansion into different regions of the world Well selected partners bring financial investment as well as managerial capabilities to the operation.

Disadvantages of the international franchising mode: Franchisees may turn into future competitors Demand of franchisees may be scarce when starting to franchise a company, which can lead to making agreements with the wrong candidates A wrong franchisee may ruin the companys name and reputation in the market Comparing to other modes such as exporting and even licensing, international franchising requires a greater financial investment to attract prospects and support and manage franchisees

Turnkey Projects
A turnkey project refers to a project in which clients pay contractors to design and construct new facilities and train personnel. A turnkey project is way for a foreign company to export its process and technology to other countries by building a plant in that country. Industrial companies that specialize in complex production technologies normally use turnkey projects as an entry strategy One of the major advantages of turnkey projects is the possibility for a company to establish a plant and earn profits in a foreign country especially in which foreign direct investment opportunities are limited and lack of expertise in a specific area exists. Potential disadvantages of a turnkey project for a company include risk of revealing companies secrets to rivals, and takeover of their plant by the host country. By entering a market with a turnkey project proves that a company has no long-term interest in the country which can become a disadvantage if the country proves to be the main market for the output of the exported process [Type text]

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Wholly Owned Subsidiaries (WOS)

A wholly owned subsidiary includes two types of strategies: Greenfield investment and Acquisitions. Greenfield investment and acquisition include both advantages and disadvantages. To decide which entry modes to use is depending on situations. Greenfield investment is the establishment of a new wholly owned subsidiary. It is often complex and potentially costly, but it is able to full control to the firm and has the most potential to provide above average return. Wholly owned subsidiaries and expatriate staff are preferred in service industries where close contact with end customers and high levels of professional skills, specialized know how, and customization are required.Greenfield investment is more likely preferred where physical capital intensive plants are planned. This strategy is attractive if there are no competitors to buy or the transfer competitive advantages that consists of embedded competencies, skills, routines, and culture. Greenfield investment is high risk due to the costs of establishing a new business in a new country.A firm may need to acquire knowledge and expertise of the existing market by third parties, such consultant, competitors, or business partners. This entry strategy takes much time due to the need of establishing new operations, distribution networks, and the necessity to learn and implement appropriate marketing strategies to compete with rivals in a new market. Acquisition has become a popular mode of entering foreign markets mainly due to its quick access.Acquisition strategy offers the fastest, and the largest, initial international expansion of any of the alternative. Acquisition has been increasing because it is a way to achieve greater market power.The market share usually is affected by market power. Therefore, many multinational corporations apply acquisitions to achieve their greater market power require buying a competitor, a supplier, a distributor, or a business in highly related industry to allow exercise of a core competency and capture competitive advantage in the market. Acquisition is lower risk than Greenfield investment because of the outcomes of an acquisition can be estimated more easily and accurately. In overall, acquisition is attractive if there are well established firms already in operations or competitors want to enter the region. On the other hand, there are many disadvantages and problems in achieving acquisition success. Integrating two organizations can be quite difficult due to different organization cultures, control system, and relationships. Integration is a complex issue, but it is one of the most important things for organizations.

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By applying acquisitions, some companies significantly increased their levels of debt which can have negative effects on the firms because high debt may cause bankrupt. Too much diversification may cause problems. Even when a firm is not too over diversified, a high level of diversification can have a negative effect on the firm in the long term performance due to a lack of management of diversification.

Joint Venture
There are five common objectives in a joint venture: market entry, risk/reward sharing, technology sharing and joint product development, and conforming to government regulations. Other benefits include political connections and distribution channel access that may depend on relationships.Such alliances often are favourable when: The partners' strategic goals converge while their competitive goals diverge The partners' size, market power, and resources are small compared to the Industry leaders Partners are able to learn from one another while limiting access to their own proprietary skills

The key issues to consider in a joint venture are ownership, control, length of agreement, pricing, technology transfer, local firm capabilities and resources, and government intentions. Potential problems include:

Conflict over asymmetric new investments Mistrust over proprietary knowledge Performance ambiguity - how to split the pie Lack of parent firm support Cultural clashes If, how, and when to terminate the relationship

Joint ventures have conflicting pressures to cooperate and compete: Strategic imperative: the partners want to maximize the advantage gained for the joint venture, but they also want to maximize their own competitive position. The joint venture attempts to develop shared resources, but each firm wants to develop and protect its own proprietary resources. The joint venture is controlled through negotiations and coordination processes, while each firm would like to have hierarchical control.

Strategic Alliance
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A Strategic Alliance is a term used to describe a variety of cooperative agreements between different firms, such as shared research, formal joint ventures, or minority equity participation.. The modern form of strategic alliances is becoming increasingly popular and has three distinguishing characteristics: 1. They are frequently between firms in industrialized nations 2. The focus is often on creating new products and/or technologies rather than distributing existing ones 3. They are often only created for short term durations Advantages of a Strategic Alliance Technology Exchange This is a major objective for many strategic alliances. The reason for this is that many breakthroughs and major technological innovations are based on interdisciplinary and/or inter-industrial advances. Because of this, it is increasingly difficult for a single firm to possess the necessary resources or capabilities to conduct their own effective R&D efforts. This is also perpetuated by shorter product life cycles and the need for many companies to stay competitive through innovation. Some industries that have become centers for extensive cooperative agreements are:

Telecommunications Electronics Pharmaceuticals Information technology Specialty chemicals

Global Competition There is a growing perception that global battles between corporations be fought between teams of players aligned in strategic partnerships Strategic alliances will become key tools for companies if they want to remain competitive in this globalized environment, particularly in industries that have dominant leaders, such as cell phone manufactures, where smaller companies need to ally in order to remain competitive.

Industry Convergence As industries converge and the traditional lines between different industrial sectors blur, strategic alliances are sometimes the only way to develop the complex skills necessary in the time frame required. Alliances become a way of shaping competition by decreasing competitive intensity,

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excluding potential entrants, and isolating players, and building complex value chains that can act as barriers Economies of Scale and Reduction of Risk Pooling resources can contribute greatly to economies of scale, and smaller companies especially can benefit greatly from strategic alliances in terms of cost reduction because of increased economies of scale.

In terms on risk reduction, in strategic alliances no one firm bears the full risk, and cost of, a joint activity. This is extremely advantageous to businesses involved in high risk / cost activities such as R&D. This is also advantageous to smaller organizations whom are more affected by risky activities. Alliance as an Alternative to Merger Some industry sectors have constraints to cross-border mergers and acquisitions, strategic alliances prove to be an excellent alternative to bypass these constraints. Alliances often lead to full-scale integration if restrictions are lifted by one or both countries.

Disadvantages of Strategic Alliance] The Risks of Competitive Collaboration Some strategic alliances involve firms that are in fierce competition outside the specific scope of the specific scope of the alliance. This creates the risk that one or both partners will try to use the alliance to create an advantage over the other. The benefits of this alliance may cause unbalance between the parties, there are several factors that may cause this asymmetry: The partnership may be forged to exchange resources and capabilities such as technology. This may cause one partner to obtain the desired technology and abandon the other partner, effectively appropriating all the benefits of the alliance.

Using investment initiative to erode the other partners competitive position. This is a situation where one partner makes and keeps control of critical resources. This creates the threat that the stronger partner may strip the other of the necessary infrastructure.

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Strengths gained by learning from one company can be used against the other. As companies learn from the other, usually by task sharing, their capabilities become strengthened, sometimes this strength exceeds the scope of the venture and a company can use it to gain a competitive advantage against the company they may be working with.

Firms may use alliances to acquire its partner. One firm may target a firm and ally with them to use the knowledge gained and trust built in the alliance to take over the other.

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Bibliography: Name of the Book 1. Marketing Management 2. Sales and distribution Management Web Sites: www.amul.com www.google.com www.timesofindia.com Author Philip Kotler Panda& Sahadev

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