Developing Ecotourism

Developing Ecotourism: The Prospect of Bakkhali Group Project prepared under Rajiv Gandhi Chair Preface This project has been prepared under the aegis of Rajiv Gandhi Chair in Eco -systems & Sustainable Development under the supervision of Professor Sarmila Banerjee by the Masters level students in Economics with specialization in Resource & Environmental Economics of the University of Calcutta. Prof. Banerjee has initiated us to the issues related to economy-environment interface and convinced us about the importance of the notion of ecotourism to help the entire process keep going.We are extremely grateful to Professor Banerjee for her active interest and caring support all throughout. In this backdrop we tried to collate information on different aspects of Ecotourism from our field trip to Bakkhali, a small part of the Sundarban mangrove forest ecosystem of West Bengal. We enjoyed our venture in this newly travelled terrain of environmental economics and learnt to search for infor mation from the internet, write brief descriptions of the issues, prepare presentation slides and fina lly to give an integrated shape to the entire project.Finally, it has been the collective contribution of all the students of this course of the batch 2010-2012. Semester IV Resource and Environmental Economics M. Sc. (Economics) University of Calcutta June 8, 2012 ii Table of Contents No. Contents Preface Table of Contents Ecotourism 1. 1 Different forms of Tourism in India 1. 2 Future prospects of Tourism 1. 3 Impacts of tourism 1. 4 Promoting ecotourism in India 1. 5 The principles adopted by those involved in Ecotourism 1. 6 Why ecotourism? Page No. ii iii – iv 1-8 2. Ecosystem Approach 2. 1 Ecosystem and its Importance . 2 Ecosystem Approach 2. 3 Implementation of Ecosystem Approach 9 – 11 3. Valuing Biodiversity 3. 1 Why value Ecosystem? 3. 2 Motivation for an economic evaluation of ecosystem services 3. 3 Biodiversity 3. 4 Valuation of Biodiversity 3. 5 Biodive rsity Mapping 12 – 15 4. People’s Biodiversity Register (PBR) 4. 1 Objective of PBR formation 4. 2 Usefulness of PBR 4. 3 Information recorded in PBR 4. 4 Major ways of collecting data for PBR 4. 5 Interconnectedness in an Ecosystem 16 – 18 5. Sundarban – A Special Ecosystem 5. 1 Sundarban Eco – region: Introduction 5. 2Sundarban Freshwater Swamp Forests 5. 3 Sundarban Mangroves 5. 4 Sand – Dunes: Ecological Set – up 5. 5 Biodiversity of Sundarban 5. 6 Livelihood in Sundarban 5. 7 Utilization of Mangrove Resources Comprised 5. 8 Recent Developments & their Impacts 5. 9 Man-Animal Conflict 5. 10 Threats to Sundarban & Climatic Vulnerability 19 – 33 1. iii 6. Ecotourism in Bakkhali: A Fringe Part of Sundarban 6. 1 Bakkhali 6. 2 Accessibility 6. 3 Uniqueness 6. 4 Frasergunj, Henry Island & Jwambudwip 6. 5 Floral Diversity at Bakkhali & Henry Isand 6. 6 Faunal Diversity at Bakkhali & Henry Island . 7 Avian Diversity at Bakkhali & H enry Island 6. 8 Livelihood on Biodiversity 6. 9 Market Sharing 6. 10 Other Observations 6. 11 Threats from Tourism 6. 12 Our Suggestions iv 34 – 45 I. ECOTOURISM diversification to become one of the fastest growing economic sectors in the world. Tourism has become a thriving global indu stry with the power to shape developing countries in both positive and negative ways. Consequently, it is the fourth largest industry in the global economy and in India it contributes to a large proportion of the National Income – 6. 3% to the national GDP and 8. 78% of the total employment; thus generating huge employment opportunities (Wikipedia). 1. 1 Different forms of Tourism in India The Indian government, in order to boost tourism of various kinds in India, has set up the Ministry of Tourism and Culture. T his ministry recently launched a campaign called ‘I bl I !’ ff y f I .T trend is moving toward niche segments of tourism (as shown in figure 1 below). Figure 1: D ifferent Forms of Tourism in India 1. 2 Future prospects of TourismAccording to the latest Tourism Satellite Accounting (TSA) research, released by the World Travel and Tourism Council (WTTC) and its strategic partner Oxford Economics in March 2009: 1 ? The demand for travel and tourism in India is expected to grow by 8. 2 per cent between 2010 and 2019 and will place India at the third position in the world. ? India's travel and tourism sector is expected to be the second largest employer in the world. Considering the ever growing importance of this industry it is necessary we look for ways that will be sustainable in the long run. wikipedia) 1. 3 Impacts of tourism Positive Impacts 1. Generating Income and Employment: Tourism in India has emerged as an instrument of income and employment generation, poverty alleviation and sustainable human development. 2. Source of Foreign Exchange Earnings: Tourism is an important source of foreign exchange earnings in India. This has favourable impact on the balance of payment of the country. 3. Preservation of National Heritage and Environment: Tourism helps preserve several places which are of historical importance by declaring them as heritage sites.For instance, the Taj Mahal, the Qutab Minar, Ajanta and Ellora temples, etc, would have been decayed and dest royed had it not been for the efforts taken by Tourism Department to preserve them. Likewise, tourism also helps in conserving the natural habitats of many endangered species. 4. Developing Infrastructure: Tourism tends to encourage the development of mult ipleuse infrastructure that benefits the host community, including various means of transports, health care facilities, and sports centers, in addition to the hotels and high -end restaurants that cater to foreign visitors.The development of infrastructur e has in turn induced the development of other directly productive activities. 2 5. Promoting Peace and Stability: Honey and Gilpin (2009) suggests that the tou rism industry can also help promote peace and stability in developing country like India by providing jobs, generating income, diversifying the economy, protecting the environment, and promoting cross-cultural awareness. 6. Contributions to Government Revenues The Indian government through the tourism department also collect money in more far reaching and indirect ways that are not linked to specific parks or conservation areas.User fees, income taxes, taxes on sales or rental of recreation equipment, and license fees for activities such as rafting and fishing can provide governments with the funds ne eded to manage natural resources. Negative Impacts 1. Undesirable Social and Cultural Change: Tourism sometimes led to the destruction of the social fabric of a community. The more tourists come into a place, the more the perceived risk of that place losing its identity. 2. Increase Tension and Hostility: Tourism can increase tension, hostility, and suspicion between the tourists and t he local communities when there is no respect and f l y flf . T yf lead to violence and other crimes committed against the tourists. 3. Creating a Sense of Antipathy: Tourism brought little benefit to the local community. Moreover, large hotel chain restaurants often import food to satisfy foreign visitors and rarely emp loy local staff for senior management positions, preventing local farmers and workers from reaping the benefit of their presence. This has often created a sense of antipathy towards the tourists and the government. 4.Adverse Effects on Environment and Eco logy: One of the most important adverse effects of tourism on the environment is increased pressure on the carrying capacity of the ecosystem in each tourist locality. Increased transport and construction activities led to large scale deforestation and destabilisation of natural landforms, while increased 3 tourist flow led to increase in solid waste dumping as well as depletion of water and fuel resources. Flow of tourists to ecologically sensitive areas resulted in destruction of rare and endangered species due to trampling, killing, disturbance of breeding habitats.Noise pollution from vehicles and public address systems, water pollution, vehicular emissions, untreated sewage, etc. also have direct effects on bio -diversity, ambient environment and general profile of tourist spots. 5. Depletion of natural resources: Tourism development can put pressure on natural resources when it increases consumption in areas where resources are already scarce. 6. Destruction and Alteration of Ecosystem: Attractive landscape sites, such as sandy beaches in Goa, Maharashtra, Kerala, Tamil Nadu; lakes, riversides, and mountain tops and slopes, are often transitional zones, characterized by species-rich ecosystems.The threats to and pressures on these ecosystems are often severe because such places are very attractive to both tourists and developers. Examples may be cited from Krushedei Island near Rameswar am. Moreover, habitat can be degraded by tourism leisure activities. For example, wildlife viewing can bring about stress for the animals and alter their natural behaviour when tourists come too close. Safaris and wildlife watching activities have a degrading effect on habitat as they often are accompanied by the noise and commotion created by tourists. Figure 2 shows the same impacts classified under many other categories.Thus, the value of the very environmental and socio cultural assets that attract travellers can erode over time. This is particularly the case where tourism development is unregulated, blinkered by volume growth, and focused only on short -term economic benefits. This is â€Å"unsustainable† and â€Å"irresponsible† and completely unacceptable in the 21st century. Tourism in India should be developed in such a way that it accommodates and entertains visitors in a way that is minimally intrusive or destructive to the environment and sustains & support s the native cultures in the locations it is operating in.Moreover, since tourism is a multi-dimensional activity, and basically a service industry, 4 Figure 2: Classification of Impacts of Tourism it would be necessary that all wings of the Central and State governments, private sector and voluntary organisations become active partners in the endeavour to attain sustainable growth in tourism if India is to become a world player in the tourism industry. Also, Eco tourism needs to be promoted so that tourism in India helps in preserving and sustaining the diversity of the India's natural and cultural environments. It can simply be summarized as shown in picture 1. 1. 1Promoting ecotourism in India Fundamentally, eco-tourism means making as little environmental impact as possible and helping to sustain the indigenous populace, thereby encouraging the preservation of wildlife and habitats when visiting a place. This is the respons ible form of tourism and tourism development, which enc ourages going back to natural products in every aspect of life. It is also the key to sustainable ecological development. The International Eco tourism Society defines eco-tourism as â€Å"responsible travel to natural areas that conserves the environment and improves the well-being of local people. † ( wikipedia) Pictue 1: Eco-tourism – simply described The key players in the ecotourism business are governments at levels, the local authorities, the developers and the operators, the visitors, and the local community. Each one of them has to be sensitive to the environment and local traditions and follow a set of guidelines for the successful development of ecotourism. 1. 2 Principles adopted in Ecotourism The principles that are adopted by those who are involved in Eco -tourism can be listed as shown below: ? To minimize the negative impacts on environment. ? To build environmental and cultural awareness and respect ?To provide positive experienc es for both visitors a nd hosts ? To provide direct financial benefits for conservation ? To provide financial benefits a nd empowerment for local people ? To raise sensitivity to host countries' political, en vironmental, and social climate ? To support international human rights (www. ecotourism. org/what-is-ecotourism) 6 and labour agreements Scientific and research institutions and non-government organisations can also play some roles in promoting ecotourism: (i) Create awareness, among all concerned, about the importance of sound eco -practices in tourism development; ii) Motivate the local communit ies to increase their involvement in sustainable tourism activities; (iii) Organise training programs to prepare the local people to take up various vocations related to ecotourism (www. ecotourism. org/what-is-ecotourism) All these principles are summed up in figure 3, where their linkage is also shown with the arrow-heads. 6. Emphasizes the need for planning and sustainable growth of the tourism industr y 1. Avoid negative impacts on natural & cultural environment 2. Educates the traveller on the importance of conservation PRINCIPLES OF ECOTOURISM 5.Stressing the use of locallyowned facilities and services. 3. Directs revenues to the conservation of natural areas and the management of protected areas 4. Brings economic benefits to local communities Figure 3: Principles of Eco -tourism 1. 3 Why ecotourism? Most wilderness areas across India are fragile ecosystems that provide a whole host of ecosystem ser vices to local residents and people living downstream; and continue to remain important tourist attractions. However, unplanned tourism in such landscapes can destroy the very environment that attracts such tourism in the first place.Hence, there is a need to move towards a model of tourism that is compatible with these fragile landscapes. Such tourism is low impact, educational, and conserves the environment while directly benefiting the economic development of local communities. It has the 7 scope to link to a wider constituency and build conservation support while raising awareness about the worth and fragility of such ecosystems in the public at large. It also promotes the non-consumptive use of wilderness areas, for the benefit of local communities living around, and dependent on these fragile landscapes.Thus, tourism can be developed along with the conservation of the ecosystem. 8 II. ECOSYSTEM APPROACH 2. 1 Ecosystem and its importance Ecosystem is a dynamic complex of plants, animals & micro-organism communities & the non-living environment interacting as a functional unit. And it is this interconnectedness that forms the striking feature of such a system. Healthy ecosystems are essential for human well-being, as they provide inva luable functions and services including sustaining living resources. The health of ecosystems is therefore not only essential to the environment, but also important to the existence and l y. T b f â€Å"E y A †. 2. 2 Ecosystem Approach Ecosystem approach is basically a strategy for the integrated management of land, water and living resources that promotes not only conservation but also sustainable use in an equitable way. It is based on the application o f appropriate scientific methodologies focused on levels of biological organization, which encompass the essential structure, processes, functions and interactions among organisms and their environment. It recognizes that humans, with their cultural diver sity, are an integral component of many ecosystems.However, till date, it has not been possible to identify any particular form of this approach. Ecosystem approach is based on some principles which consider the economy to be anthropocentric. And since ecosystem is a rich resource for human society, the integrated management of the biotic and abiotic components must ensure sustained use so as to secure it for future generations. These principles state that the objectives of management of land, water and living resources are a matter of societal choice and management should be decentralized to the lowest appropriate level.This approach should be undertaken at the appropriate spatial and temporal scale because time and spatial dimensions are equally important. This approach should also consider all forms of relevant information including scientific, traditional and local knowledge, innovative 9 practices and most importantly, it should be open to changes. Finally, this should involve all relevant sectors of so ciety and scientific discipline s. 2. 3 Implementation of Ecosystem Approach The International Union for Conservation of Nature and Natural Resources (IUCN) identifies three steps for the implementation of ecosystem approach.These steps are in accordance with the above mentioned principles (Figure 4). Let us describe these steps in more detail. Figure 4: Major Steps for Implementation of Ecosystem Approach (Adapted from R. Costanza et al. â€Å"The value of the Worl d’s ecosystem Services and Natural Capital†, Nature vol. 387(1997) Step A It deals with the most difficult issues of defining an ecosystem area; identifying th e stakeholders and developing a relation between the two. It is best to work simultaneously on defining the ecosystem area and determining the stakeholders who will support the selection and management of that area.Whether we start with area or with stake holders, 10 it will take substantial time and effort to achieve a workable fit. Howover, this step qualifies as the most important step because a proper management of the ecosystem by the stakeholders and a mutually beneficial relationship between the two can not only bring desirable results but also ensure harmonious coexistence. On the other hand, an improper management might lead to exploitation due to overuse and significant endangering of the ecosystem, disrupting its sustainability for future generations . Step BThis stage involves characterizing the struc ture and function of the ecosystem, and setting in place mechanisms to manage and monitor it. The most productive way involves scientists and local inhabitants working together , as the traditional and scientific knowledge are likely to be complementary, though different. Step C Step C essentially deals with reducing market induced distortions on ecosystem. Valuation in case of environmental good has always been a problem since these are non marketed goods. Hence market distortion should be corrected at an early stage.Here we may apply the concept of derived market to arrive at a proper valuation using correct market instruments-Mekong river basin case study showed overvaluation of dam and irrigation schemes. This should be corrected using best possible knowledge. The interlink age between the components should be properly identified while making the cost benefit analysis. Care should be taken to avoid over extraction of resources. Proper incentive should be created among the people for wise use of biodiversity. One may bring political will in necessary issues. 11 III. VALUING BIODIVERSITY 3. 1 Why to value Ecosystem?The services of ecological systems and the natural capital stocks that produce them l f f E ’ l f -support system. They contribute to human welfare, both directly and indirectly, and therefore represent part of the total economic value of the planet. For the entire biosphere, ,the current economic value of 17 ecosystem services for 16 biomes, based on published studies and a few original calculations, is estimated to be in the range of US$16–54 trillion per year, with an average of US$33 trillion per year. Because of the nature of uncertainties, this must be considered as a minimum estimate.Global gross national product total is around US$18 trillion per year. For example, the average forest benefit in the Med region amounts to about 1% of GDP. Indirect use value such as water-shed protection, contributes about 35% of total estimated value. ( Source: Adapted from R. Costanza et al. â€Å"T l f W l’ y S N lC l† N l. 387(1997)p. 256 table 2) 3. 2 Motivation for an economic evaluation of ecosystem services ? Ecosystems provide a wide array of goods and services of value to people. ? Provision of ecosystems services often is not factored into import ant decisions that affect ecosystems.Distortions in decision –making damage the provision of ecosystems services making human society and the environment poorer. (Valuing Ecosystem services—advantages & disadvantages of existing methodologies and application to PES by Daniel Perrot Maitre (Seminar on environment services and financing for the protection and sustainable use of ecosystem Geneva,10-11 October 2005;IUCN ) 3. 3 Biodiversity Variation in the living part of ecology is called â€Å"biological diversity† or â€Å"biodiversity†. This term is most commonly used to replace the more clearly defined and long established terms , species diversity and species richness.Biologists most often define 12 biodiversity as the â€Å"totality of genes, species, and ecosystems of a region†. An advantage of this definition is that it seems to describe most circumstances and presents a unified view of the traditional three levels at which biological variety has been identified . (www. portal. gsi. gov. in/) There are three forms of biodiversity: Ecosystem diversity: It refers to the diversity of a place at the level of ecosystems ; the variety of species and ecological processes that occur in different physical settings.Species diversity: It is the effective number of different species that are represented in a collection of individuals (a dataset). Genetic diversity: It refers to the total number of genetic characteristics in the genetic makeup of a species (www. portal. gsi. gov. in/) Biodiversity is indeed a major contributor to the economy through the provision of many ecosystem goods and services. It is in trinsic to the values of beauty and tranquillity. Many Australians place a high value on native plants and animals, which contribute to a sense of cultural identity, spiritual enrichment and recreation.In fact, biodiversity is central to the cultures of Aboriginal and Torres Strait Islander peoples. There is also a link between biodiversity and livelihood. This is because a person's livelihood refers to â€Å"means of securing the necessities of life†. Th is extends to include social and cultural means, i. e. â€Å"the command an individual, family, or other social group has over an income and/or bundles of resources that can be used or exchanged to satisfy its needs. † For instance a fisherman's livelihood depends on the availability and accessibility of the diversity of fish.Therefore valuation of biodiversity is very important in our daily life. (www. portal. gsi. gov. in/) 3. 4 Valuation of Biodiversity The Value of Biodiversity (Figure 5) Includes both Use Values and Non-Use Values:? Use values include direct use (both consumptive and non-consumptive), indirect use, and option values 13 Direct-use Values: Hunting, direct -consumption (e. g. collection of berries, mushrooms, b l ll â€Å" ) ll â€Å" †; b y tourism †. – Indirect-use Values: Ecosystem services such as pollination, habitat for other species, sustaining food chains, and other uses are indirect -use values. Non-use values include bequest values and existence values (http://www. biospherenursery. com/pages/whatisabioscape. html ) Value of Biodiversity Present use value-market based Future use value-option value Direct use value -conscious Existenceexistence value Non use value -ignorant? Figure 5: Fragmented Value of Biodiversity 3. 5 Biodiversity Mapping Biodiversity mapping denotes the link between biodiversity and human diversity. It is recognizes the role- played by human diversity in biodiversity conservation.Cultural biodiversity also exists in towns as people use traditional medicines, eat traditional food, wear traditional cloth and can also have an intricate knowledge on culture and biodiversity. Categories of Biodiversity Mapping Bioscape: The term Bioscape f â€Å"l ff b lz l †; including human habitat (http://www. biospherenursery. com/pages/whatisabioscape. html). Landscape: Landscape ecology is described as a science that examines the appearance and patterns of land as a result of the interactions with its ecosystems. The relatively new 14 iscipline of landscape ecology provides insight into both landscape diversity and species diversity and suggests a theoretical and practical basis for conservation planning . Timescape: Timescape is the change in pattern over time. It documents landscape pattern, occurrence and exploitation of biological diversity and the dependence of community on the natural resources. IV. PEOPLE’S BIODIVERSITY REGISTER (PBR) P l’ B yR (PBR) is a documented register containing compr ehensive information on the availability and knowledge of the local biological resource, their use and traditional folklore associated with them.It is one of the significant steps for conservation of biodiversity through sustainable management using indigenous knowledge. 4. 1 Objectives of PBR formation ? To claim justified benefit sharing by the local people for any commercial use of their BD resources. ? To explore enterprises based on their BD resources ? To develop exhaustive data base to help effective intervention for development & conservation Along with this information, the Register will also contain extensive annotations on the landscape of the area, present land use pattern, and some over timescape. 4. 2 Usefulness of PBR Preparation of Biodiversity Register is an attempt to realize the bio diversity at Local Self Government level, States and the whole Country. ? This will also provide information on the current utilization patterns of biodiversity, its economic benefits to the local communities. 4. 3 Information recorded in PBR 15 The information contained in PBR is not only confined to a list of species available in an area but a comprehensive report on the species, their habit, biological produce, their associated market price, harvesting & transport of the produce, regulation on harvesting, technology, l’ y f ocal level management, landscape related data, over a time span and so on. These information are being documented under landscape, lifescape, peoplescape, and t imescape. Thus, f l’ biodiversity register includes: ? knowledge of local biological resources, their traditional knowledge associated with them, ? data about the local aid & practitioner uses of biological resources, ? details about biological resources & knowledge. 4. 4 Major ways of Collecting Data for PBR ? Interviews of individual ? Group interviews ? Few observation by volunteers and technical support group ? Existing official document 4. Interconnectedness in an Ecosystem 5. PAYMENTECOSYSTEM SERVICES 4. ECOSYSTEM SERVICES 1. BIODIVERSITY ECOSYSTEM 3. LIVELIHOOD DEPENDENCE 2. ECO-TOURISM Figure 6: Interconnectedness in a Ecosystem 16 Humans are now most concerned with the exploitation and preservation of the biotic constituents for commercial harvest and recreation. To achieve these goals, we must be aware of the interconnectedness of the ecosystem which exhibits not only the characteristics of its components, but also characteristics of its own which arise from combinations and interactions of the components (as shown in figure 6).The interconnected mesh can be more clearly explained as: b iodiversity is the living part of ecosystem – with biodiversit y eco-tourism can be developed – eco (tourism) is a major source of livelihood – ecosystem also provides various kinds of services correspond to livelihood and biodiversity – thus payment for ecosystem services – this in turn can help in preserving the biodi versity. 17 V. SUNDARBAN – A Special Ecosystem Map 1: Sundarban Eco-region 5. 1 Sundarban Eco-region: IntroductionThe Sundarban Delta Complex (map 1), having geo-genetic link to the tectonic Bengal Basin, geographically extends over the eastern India (40%) and Bangladesh (60%). It is characterized by prolific growth of rich and diversified mangrove vegetation and forms an integral down drift coastal part of the Bengal Delta Complex that overlies huge thickness of Tertiary marine sediments of the actively subsiding Bengal Basin. It is a cluster of 102 miracle islands, form the largest mangrove delta complex on the globe in 18 he estuarine phase of the Ganges and Brahmaputra Rivers, and constitute a unique Biosphere Reserve in the coastal Bay of Bengal. The deltaic complex was declared a reserved forest in 1875-76, under the Forest Act, 1865. A Forest Division was created in 1879 with headquarters in Khulna. The Reserve Forest has been nominated for recognition as a Ramsar Site (A Wetland of International Importance). (www. portal. gsi. gov. in/) â€Å"Sundarban† literally means â€Å"beautiful jungle or forest† in Bengali language. The name Sundarbans may also have been derived from the Sundari trees (dominant species) that are omnipresent in this region.This is a region of transition of fresh Ganga water and saline water of Bay of Bengal. Sundarban ecoregion features two characters — forest ecosystem and sand dunes. The forest ecosystem can again be divided into two clusters: freshwater swamp forests and mangroves. 5. 2 Sundarban freshwater swamp forests The Sundarbans freshwater swamp forests lay between the upland lower Gangetic plains moist deciduous forests and the brackish-water Sundarban mangroves bordering the Bay of Bengal. These are tropical a nd subtropical moist broad-leafed brackish swamp forests.The fertile soils of the delta have been subject to intensive human use for centuries, and the eco-region has been mostly conv erted to intensive agriculture, with few enclaves of forest remaining. This eco-region is nearly extinct due to large-scale deforestation and settlement by human. 5. 3 Sundarban Mangroves Mangrove forest (picture 2) is a woody community that can be periodically submerged in sea water of the inter-tidal zone of tropical regions . They are the second highest source of primary production next to rainforests. They produce high detritus and release nutrients which are a food source of variety of organism.Mangroves provide homes to variety of marine and terrestrial organisms. They act as nurseries and feeding grounds for many fish, shrimp and crustaceans and non-resident fish enter the mangroves to feed at high . M l y 19 f fb ’ . They not only provide a wealth of b yb l f l’ food web. As with most ecosystems, an intricate relationship exists between mankind and mangrove. Many indigenous costal residents rely on mangroves to sustain their traditional cutlass. They have been sustainably used for food production, medicines, fuel wood, and fishery and construction materials.They are important inter tidal estuarine wetlands along the coast line of tropical and sub-tropical region; are exposed to autersopogenic contamination fro m tidal water, river water and land based sources and Sundarban mangrove ecosystem being no exception. Picture 2: Trees of Sundarban Mangrove Special Feature of Mangrove Ecosystem 1. Adaptations to low oxygen : Red mangroves, which can survive in the most inundated areas, prop themselves above the water level with stilt roots and can then absorb air through pores in their bark (lenticels).Black mangroves live on higher ground and make many pneumatophores (specialised root -like structures which stick up out of the soil like straws for breathing) which are also covered in lenticels. These â€Å"breathing tubes† typically reach heights up to thirty centimeters, and in some species, over three meters. There are four types of pne umatophore — stilt or prop type, snorkel or peg type, knee type, and ribbon or plank type. Knee and ribbon types may be combined with buttress roots at the base of the tree. The roots also contain wide aerenchyma to facilitate transport within the plant. 2.Limiting water loss: Because of the limit ed fresh water available in salty intertidal soils, mangroves limit the amount of water they lose through their leaves. They 20 can restrict the opening of their stomata (pores on the leaf surfaces, which exchange carbon dioxide gas and water vapour during photosynthesis). They also vary the orientation of their leaves to avoid the harsh midday sun and so reduce evaporation from the leaves. Anthony Calfo, a noted aquarium author, observed anecdotally a red mangrove in captivity only grows if its leaves are mis ted with fresh water several times a week, simulating the frequent tropical rainstorms. . Nutrient uptake: The biggest problem that mangroves face is nutrient uptake. Because the soil is perpetually waterlogged, there is little free oxygen. Anaerobic bacteria liberate nitrogen gas, soluble iron, inorganic phosphates, sulfides, and methane, which makes the soil much less nutritious. Pnuematophores (aerial roots) allow mangroves to absorb gases directly from the atmosphere, and other nutrients such as iron, fro m the inhospitable soil. Mangroves store gases directly inside the roots, processing them even when the roots are submerged during high tide. Evolution of MangrovesFrom low tidal mudflat via high tidal mudflat with mangroves to shrimp pond, sandy silt content is lightly increasing. The content of macro elements and minerals is almost unchanged after depth as results of fairly stable, sedimentary source chronologically. Geochemical sedimentary evo lution is visually reflected in the regularly changing in geochemical indices, the content of nutrients and heavy metals. Mangroves often take shape in high tidal mudflat of estuaries, in where, sedimentary environment with fine grain is favourable for mangrove seeds to be stored, spring up and photosynthesiz e.In return, the formation and development of mangrove forests, as a sedimentary trap, make the sedimentary environment more favourable for depositing of fine grain sediments rich in clay minerals. Sedimentary deposition rate in mangrove forest tends to be higher than in Thus, these processes are natural companion of the environmental transform from low tidal mudflat without mangroves (permanently being under water) into high tidal mudflat covered with mangroves (alternatively being under water). The evolution is depicted in the figure 7 below. 21 Figure 7: Evolution of MangrovesThe transform of low tidal mudflat without mangroves into high tidal mudflat is characterized by a little increase in content of Fepyrite, Statal, Spyrite, Sreduction. The raising in amount of sulphurs can be understood as consequence of higher amount of mangrove root, which is the main sulphur source. Th e content of sulphurs increase after sedimentary depth in low tidal mudflat is more intensively than that in high tidal mudflat. This may also relate to increasing sulphur source in tidal mudflat. In addition, var iation coefficients of sulphurs content in mangrove forest sediment are higher than those in low tidal mudflat.Thus, the transform process through these two environments leads to stronger sulphurs differentiation. Under the right conditions like the formation of a mud -flat, growth of mangroves is initiated. Stabilization of mud-flats is a preliminary process in the establishment of mangroves. Pioneer plant species initiate this process. The roots of these plants help in binding the soil and also help the establishment of micro -organisms which further help in stabilizing the area. Stabilization starts from the land side and gradually shifts towards the sea.The pioneer plants are spec ies like Porterasia coarctata and some members of the Cyprus family. These are slowly rep laced by other mangrove plants and then these mangroves gradually spread towards the sea. Once mangroves grow, the submerged banks are fully stabilized. Then the plant s slowly reach a stage which is called the climax vegetation. A climax vegetation of mangroves is represented by the complete circle of life where there are different species of plants, animals (both terrestrial and aquatic) and micro -organisms forming an ecosystem called the tropical salt marsh or the mangrove ecosystem.In case the sediments are not 22 stabilized, submerged banks are washed out. Thousands of deltas are formed and washed out every year before they can be stabilized. In the Gangetic delta this situation is quite common. Zonation in mangrove 1. Proximal Zone (Front mangroves): This zone is towards water front, subject to regular tidal effect where intensity of soil accumulation and inundation is a continuous process. The mangrove species in this zone are specially adapted with stilt roots, prop roots f or stability and anchorage. Main species with these features are Rhizophora apiculata and Rhizophora mucronata.On rocky and coral reef substrata, Avicennia Spp, Sonneratia Caseolaris are also found. Both Avicennia and Sonneratia produce pneumatophores. 2. Middle Zones (Mid mangroves): Above the Rhizophora/ Avicennia line luxuriant group of Bruguiera gymnorrhiza, B. Cylindrica, Lumnitzera racemosa, L. littoralis, Ceriops tagal and Aegiceras corniculatum occur. Ceriops and Bruguiera develop a strong hold fast in the form of knee roots or bent roots as a special adoption for supporting the erect bole. 3. Distal Zone (Back mangroves): Towards island area mangroves like Excoecaris agallocha, Heritiera littoralis and Xylocarnus spp occur.Both Heritiera and Xylocarpus produce buttresses. Generally the salinity is on lower side in this zone occurring towards hill sides where run off of fresh water is for a prolonged period. The duration of tidal submersion is low in this zone compared to fr ont mangroves. However, the zonation in mangroves is not so simple and varies from place to place. Every species has its own level of salinity tolerance. Estuaries on east coast show distinct zonation. The high salinity range on the east coast estuaries may be the principal reason for distinct zonation there.The range and force of tidal action also play a determinant role in creation and maintenance of zones as distribution of seeds or propagules is influenced by tidal action. Also, tides do influence the salinity in an estuary. Land Formation in mangrove ecosystem 23 During high tide silts take a way into the creeks. And when low tide starts the water recedes but the silts are deposited. This is the natural way of sedimenta tion. In this way the land is formed in mangrove ecosystem (figure 8 (a)). But the newly formed land is fragile in nature. Additionally the seeds of mangroves fall on this area and there they grow up.The roots of mangrove with its special characteristics hold up the soil. This prevents soil erosion and holds up the land. And the settlement grows around that. This is used for cultivation also. When embankment is built artificially to cultivate and to protect the land from being flooded the natural process o f land formation is hampered. Silt deposition does not take place. Also the mangroves which used to be there die down. The land becomes more fragile and during high tide or during flood the water table increases more than it would previously. The purpose of embankment fails here.It hampers the natural land formation and also destroys the mangrove ecosystem (figure 8 (b)). (a) (b) Figure 8: (a) Natural Land Formation and (b) Land Formation Due To Embankment in Mangrove Ecosystem 5. 4 Sand-Dunes: Ecological set-up At the most basic level dunes are simply piles of sand. Wind and waves transport sand onto the beach forming dunes. It results from stabilization of transported sediment, sea weed, debris by vegetation. It is also related to tida l fluctuation. Further accretion results in beach elevation. Migrating dunes helps to keep habitation being exposed to sea.Dune ridges are formed by surface wind w ith velocity more than 4. 5 m/s when sand sized 24 particles move by siltation. Travelling dunes bury areas in eroding coast. In stable coast dunes stabilize 90o to wind direction. Sand tends to be blown from the windward face and to accumulate on the leeward side. Dunes (picture 3) are found in Sundarban ecosystem which help protects mangroves. Tidal flow causes the formation of the mangrove and the formation of the sand dunes is caused by the wind flows. Thus tidal flow and wind flow works together in Sundarbans and creates the special features of this region, i. . , mangroves and sand dunes which lead to the formation of the beach. The beach here is rich in biodiversity and Sundarban is developing a very good kind of beach-centric ecotourism. Picture 3: Sand-dunes of Sundarban Eco-system 5. 5 Biodiversity of Sundarban A brief account of the floral and faunal diversity in Sundarban is shown in the picture 4 below. Some common mangrove species can be jotted down as: ? Hatal(Phoenix paludosa) ? Genwa (Excoecaria agallocha) ? Dhundul(Xylocarpus granatum) ? Kankra (Bruguirea gymnorrhiza) ? Champa(Bruguiera parviflora) ? Dhani ghas (Porteresia coarctata) Garjan (Rhizophora apiculata) ? Keora (Sonneratia apelata) ? Sundari tree (Heritiera fomes) ? Golpati( Nypa frutcans) (www. portal. gsi. gov. in/) 25 There are also many faunal species in this region: (www. portal. gsi. gov. in/) BENGALTIGER (Panthera tigris tigris): At present there are about 250-300 tigers in Sundarban. This is the nominate species of the eight sub-species of tigers found in the world. Tigers are the apex predat ors of this mangrove eco -system. They are right at the top of the food chain. The Sundarban t igers are extraordinary beasts.Perfectly at home both on land and water, it is known to cross more than one river at time to find food. The Sundarban tiger preys mainly on cheetal or spotted deer, wild boar, goats and livestock. It is a nocturnal and ambush predator. Picture 4: Sundarban Ecosystem Biodiversity JUNGLE CAT (Felis chaus): This is a stout bodied cat found in Sundarbans. It is a nocturnal animal which preys on small animals. This cat is often met with in Sundarbans. It is a good climber and an ambush predator. LEOPARD CAT (Felis bengalensis): This cat is an agile climber and a good swimmer. It preys on birds, bats, hares and fawns.FISHING CAT (Prionailurus viverrina): This is a powerfully built cat. It is a nocturnal predator and an expert swimmer. It is known to dive in water to catch fish hence the 26 name. It also preys on small and medium size animals such as wild pigs and cheetal fawns. WILD BOAR (Sus scrofa): This animal is often seen in Sundarbans. This is a heavily built animal. It is basically a herbivore but is also known to take small animals, insects and even carrion. This animal also a cts as a prey species for the tiger. CHEETAL OR SPOTTED DEER (Axis axis): This is the only deer found in Sundarban.It is also the most common deer in India. It is a herbivore. This animal is the major prey for the tigers. It is commonly seen near water holes. COMMON KRAIT (Bungarus caeruleus): This is the most venomous snake in India. This is strictly nocturnal snake. It feeds mainly on snakes. BLACK CAPPED KINGFISHER (Halcyon pileata): This is a common bird of the Sundarbans. Seen frequently on river banks. It feeds mainly on fish and crabs. GOLIATH HERON (Ardea goliath): This common bird of Sundarbans is huge in appearance. It is a solitary creature. It feeds mainly on fish and frogs.LESSER ADJUTANT STORK (Leptoptilos javanicus): Normally solitary. Feeds on fish, frogs and reptiles. BRAMHINY KITE (Haliastur indus): This is a raptor which is often found besides water bodies such as lakes, pools, ponds and rivers. It feeds on fish, frogs, snakes, small mammals and bats. In addition to this Sundarban has few species of sharks the most common being the INDIAN DOG SHARK (Scoliodon laticaudus): There are also dolphins to be found in Sundarbans the most common being the Gangetic dolphin (Platinista gangetica) to name a few. COMMON KRAIT (Bungarus caeruleus): This is the most venomous snake in India.This is strictly nocturnal snake. It feeds mainly on snakes. 27 BLACK CAPPED KINGFISHER (Halcyon pileata): This is a common bird of the Sundarbans. Seen frequently on river banks. It feeds mainly on fish and crabs. GOLIATH HERON (Ardea goliath): This common bird of Sundarbans is huge in appearance. It is a solitary creature. It feeds mainly on fish and frogs. LESSER ADJUTANT STORK (Leptoptilos javanicus): Normally solitary. Feeds on fish, frogs and reptiles. BRAMHINY KITE (Haliastur indus): This is a raptor which is often found besides water bodies such as lakes, pools, ponds and rivers.It feeds on fish, frogs, snakes, small mammals and bats. INDIAN DOG SHARK (Scoliodon laticaudus). There are also dolphins to be found in Sundarbans the most common being the Gangetic dolphin (Platinista gangetica) to name a few. 5. 6 Livelihood in Sundarban Agriculture is the main occupation of the local people. Rain-fed, mono-cro â€Å" † paddy is grown in t his area. Before the introduction of HYVs, they cultivated salt tolerant varieties of rice like Paknai, Barhal, Talmugur, Gopalbhog, Gulshi, Bolan etc. Occasional inundation of paddy fields by brackish water gave rise to a paddy-cum-fishery system.During agricultural lean period, locals get involved in fishing, honey collection. 49% of the households directly extracted forest resources for their livelihood, including 98 % of the landless forest fishers. Almost all remaining households depended partly on the forest resources. The forest fishers, traders and some of the labourers directly depended on forest resources, earning money from either selling or processing these resources. Most of the farmers and service holders depended on forest resources indirectly because they used forest resources for their households (for food, fuelwood, building materials etc).It was a clear trend that the higher the household income, the higher the dependency on forest resources. Main livelihood percent of households: Fishery-32, Farming-25, Labour-15, Trade-13, Service-5, Other-10. Some livelihood forms are shown in picture 5. 28 C Picture 5: Some Livelihood Forms in Sundarban 5. 7 Utilization of mangrove resources comprised †¢F :F †¢F l †¢ F y ll †¢B l y b .; from various trees; ; l :G l ( y l) b . There are some medicinal plants in the mangroves, but t hese are not utilized. Most of the households depended entirely on fu el wood for cooking.This demand causes rapid depletion of forest and consequently the ecosystem, as well as air pollution and health problems. Once upon a time logging was practiced in felling mode, but now in selective mode. When carried out in felling mode, t he result can be er osion of the exposed ground and impoverishment of the soil within the affected area. In se lective mode, as carried out at present, the removal of many valuable species can still damage the ecosystem, and in this mode, the space of the removed individual tr ees may be taken by other, less valuable, species. In either case, the forest resources become less valuable.Fish is the potential source of protein of the people of Bangladesh. Many people of the Sundarban households totally depend on fishing, usually by nets that are very effective but catch all fishes. Sometimes po isoning is applied, with severe environmental impacts. Tourists can enjoy the sight of fishing by trained otters. Shrimp cultivation is profitable business, and is totally dependent on natural fry. People collect fry from the river by nets of small mesh, with severe consequences to a multitude of other species. 5. 8 Recent Developments and their impacts 29Recent introduction of HYV seeds has led to increased dependence on chemical fertilizers, pesticides & external sources of seeds dominated by corporate sector. M f HYV’ b f f. Occurrence of recent cyclones made them realise the need for preservation & cultivation of indigenous species. Lack of alternate emplo yment opportunities, loss of land, population pressure & poverty increases the dependence on forest for timber & Non-Timber Forest Produces (NTFPs). Destructive capture method of tiger prawn culture has replaced the traditional aquaculture in paddy fields. Corporate sector is making money, Meendharas are being employed.Over 1000 juveniles of other fish species are destroyed to catch a single tiger prawn seedling (DISHA, 2006). W f l b b ’l l b en subjected to uncertainty. What they could obtain for their livelihood from the forest easily, is now restricted. This poses a difficulty for their subsistence. So they get involved in illegal cutting which adversely affect the ecosystem. 5. 9 Man-animal Conflict Local people in Sundarban are immensely dependent on the forest for their day to day activities and also for their living. Honey collectors, wood cutters, leaf collectors and fishermen are sometimes killed by tiger inside the forest.Sundarban tig er treats human as a normal prey in forest. Every village in fringes have large number of widows of tiger . T f y ‘B b b ’ (picture 6) ‘D k y’ irrespective of all religions. To reduce potential tiger attack, t hey experiment with Human Masks (picture 7) at the back of their head. 30 Picture 6: Bonbibi Picture 7: Human Masks 5. 10 Threats to Sundarban and climatic vulnerability ? Recurrent coastal flooding (picture 8) due to climate change (global warming) causes changes in sea level (rise in sea level). 26 Picture 8: Effects of Coastal Flooding Reduced flow of sweet water into Sundarban mangrove system. ? Extension of non-forestry land use into mangrove forest. ? The Barrier: a) Man-animal conflict: Straying of ti gers into villages. b) Human-human conflict: Villagers Vs. foresters. ? Population pressure and increased demand for small timber and fuel wood for local consumption. ? Poaching of tiger, spotted deer, wild boar, marine ? Uncontrolled collection of prawn seedlings. ? Uncontrolled fishing in the water of Reserve forests. 31 turtles, horse-shoe crab etc. ? Continuous trampling of river/creek banks by fishermen and prawn seed collectors. Chemical pollution through marine paints and hydrocarbons & also agricultural run-off containing chemical fertilizers & pesticides. ? Lack of employment opportunities in the forest fringe areas, locals moving to adjacent states for jobs, girl trafficking. ? Organizational and infrastructural deficiencies lead to corporate extortion in agriculture & aquaculture. ? Tourism can be viewed as one such threat to the ecosystem. Tourism has its negative impacts on the ecosystem which are pressure on carrying capacity of the ecosystem which may sometime leads t o deforestation & destruction of endangered species.Environmental pollution & depletion of natural resources are seen almost everywhere with more tourist visit. 32 VI. ECOTOURISM at BAKKHALI: A fringe part of Sundarban 6. 1 Bakkhali Bakkhali is a coastal area in South 24 Parganas district of West Bengal, India (map 2). It is located on one of the many deltaic islands spread across southern Bengal. This small island juts out into the vast expanse of the Bay o f Bengal. It has a 7 k m long beach stretching from Bakkhali to Frasergunj, a twin beach with gently rolling waves. Casuarina trees line up the beach like guarding wall, which adds up to the beauty of the beach. wikipedia) 6. 2 Accessibility By road Map 2: Bakkhali, a small part of South-West West Bengal It is 125 km by road from Joka tram terminus. The road runs through Diamond Harbour and Kakdwip to Namkhana, where the car o r bus has to be transported across the Hatania-Doania creek in a special ferry. The ferry service is av ailable from 7AM -11PM except from 12 noon till 1:45PM (lunch hour). The fare for crossing a Car/Jeep is approx Rs 160 + Rs 30 toll (including loading/unloading). 33 By bus WBSTC has regular bus service from Esplande to Bakkhali(150 kms).One starts at 7AM in the morning from Esplande and reaches Bakkhali at around 11:30AM and leaves from Bakkhali after half an hour for Kolkata (Esplande). By train The nearest rail station is at Namkhana. There are regular trains from Sealdah via Lakshmikantapur and Kakdwip to Namkhana. The first train starts at around 4AM from Sealdah. Train fare is around Rs 22 and the journey takes around 3 hrs. From Namkhana station you will get a van rickshaw to reach the place from where you need to cross a narrow creek in a small boat. Van fare is Rs 5 per head or Rs 30 if you reserve a van and for crossing the creek you need to pay Rs 1.Then from the bus stand one can get buses for Bakkhali which take around 45mins to 1hr and their fare is Rs 13. The Bakkhali bus stand is very close to all the hotels and just a 5 min walk from the beach. This place is competing with other beach tourist spots – Digha, Mandarmani, Sankarpur. It is good for overnight stay. 6. 3 Uniqueness The slope of Bakkhali is towards the sea hence it is less prone to tidal waves. It is not difficult to observe various invertebrate species like crabs, sea animal, starfish etc. , which were observed along the shore line.While bigger crabs live in the dry sand further away from the sea, the smaller ones live in the muddy shores nearer to the sea. Various species l k ‘S of m ’ ‘H l’ ‘G l ’ ‘H j ’ ‘K k ’ K ’ ‘G ’ . found here. Due to its sandy habitat, Xerophytic vegetation is found here. Also because of its unique flora and fauna, Bakkhali attracts many migratory birds. Its mud banks provide the birds a perfect ground for foraging on the marine invertebrates. For all these natural b iodiversity, Bakkhali attracts lots of tourists. 34 The Forest Department maintains a mangrove trail which is also a source of attraction for tourists.This growth of lucrative tourism again attracts not only private Picture 9: Notable Features of Bakkhali Beach investment (hotel business) but also migrants (some people who work in hotels, sells fast food near the beach etc. ) from fringe areas. Such in surge often creates ecological imbalances. Most of the inhabitants in Bakkhali are migrants settled from Midnapore and Bangladesh (although quite a large no of people can be found as aborigine). Both spring & neap tides are observed in the region, though the duration of high tide is only a few hours in a day.Coastal landforms include: back dunal mudflats, back-swamps coast-parallel older stabilized dune ridges & younger mobile dunes. Low gradient supratidal and inter-tidal beaches with mud bank, tidal flats etc. & offshore bars develop locally in patches in the moist and depressed are as. The sand dunes serve an important function by acting as a barrier between the sea and the habitat near the sea thereby protecting them. These notable features of Bakkhali beach are shown in picture 9. 6. 4 Frasergunj, Henry Island and JwambudwipFish trawlers anchor in Frazergunj Fishing Harbour (picture 10) as co-operative fishing is carried out here under Benfish. Dominant species that are harvested in winter are prawn, promfret and marine bhetki. Marine bhetki is the most valuable species because of its consumption and medicinal values (liver oil and capsule coating are highly demanded by pharmaceutical industries). Entry fee is imposed to restrict entry in Henry Island (picture 11). Fresh water aquaculture (â€Å"b †) .T f we can get an overview of the mangrove canopy. Jambudwip is a deserted island where drying of fishes is practiced (sutki industry).This is mainly an export industry which leads to high export earnings. 35 Picture 10: Frasergunj Picture 11: Henry Isla nd 6. 5 Floral Diversity at Bakkhali & Henry Island (picture 12) Name Scientific Name Location Characteristics Use-Values Gewa Excoecaria agallocha Leaves become orange when rather mature. The timber is used for making wood-charcoal and fire-crackers. Kankra Bruguiera gymnorrhiza Rhizophora apiculata Blume Aegiceras corniculatum West Bengal Govt. Forest Range, Bakkhali. Do. Do. It has breathing roots. Do. It bears small white flowers. Do. Pneumatophores are prominent. Three types of Baen: a) Piyara Baen. b) Kalo Baen. ) Sada Baen. Garjan Kholshi. Baen. Avicennia alba Blume(kalo baen) Avicennia marina (Forsk. ) Vierh. (piyara baen) Chionlata. Goran. Do. Hargoja. Acanthus illicifolius Do. Hental. Phoenix paludosa Roxb. Casuarina sp Famous for good-quality nectar, yielding good quality honey. Source of animal fodder. In humans, it has medicinal use as an antidiabetic. Do. Eucalyptus. Ceriops tagal (Perr. ) Robinson(Motth goran) Eucalyptus obliqua Do. Jhau It has red flowers. It has lon g and thin thorns. Types of Goran:Motth Goran,Jelly Goran. Exotic species from Australia. It has a long, white trunk. Do. It is a shrub having small and sharp thorns.It has thin and long thorns, looks like a short palm. It has long slender leaves. Do. 36 Used in paper & textile industry, also has medicinal values. Provides a camouflaging background for tiger. The dry leaves are used as fuel for cooking. Golpata. Nypa fruticans (Thunb. ) Wurmb. Do. Looks like a short palm tree. Leaves are used as thatching material. Picture 12: Floral Diversity at Bakkhali & Henry Island 6. 6 Faunal Diversity at Bakkhali & Henry Island (picture 13) Name Scientific Name Category Location Characteristics Green Bee Eater Rufous Treepie. Whimbrel. Avifauna (Aves) Do. Green in colour with a long slender beak.White-throated Kingfisher. Spotted deer Estuarine crocodile. Hermit crab. Do. Sea Beach, Bakkhali. W. B. Forest Range, Bakkhali. Sea Beach, Bakkhali. W. B. Forest Range, Bakkhali. Do. Do. Do. Axis axi s Mammal. Reptile. Arthropod. Red Crab. Ocypode sp. Do. Sea Beach, Bakkhali. Do. Sand-bubbler crab. Fiddler crab. Dotilla sp. Do. Do. Uca spp. Do. Marine worm. Diopatra cuprea Annelid. Sea Beach, Bakkhali. Star fish. Jelly fish. Asterias sp. Metridium sp. Echinoderm. Cnidarian. Do. Do. 37 Long tail with black, brown & white colours. Curved beak, white & brown in colour. Colourful (blue,red) with red long beak,built for catching fishes.

Foundational Accounting Principles and Terminology Essay

We all know how important the accounting aspect of any business/organization is. It is basically the most important way to manage finances. Without proper accounting for all expenses and finances, a company and/or organization will definitely have a hard time being financially stable. In this paper we will discuss some foundational accounting principles and terminology that are basic but quite essential to the accounting practice. Now let’s discuss some accounting terms beginning with Generally Accepted Accounting Principles. Generally Accepted Accounting Principles (GAAP) is a codification of how CPA firms and corporations prepare and present their business income and expense, assets and liabilities on their financial statements. GAAP is not a single accounting rule, but rather the aggregate of many rules on how to account for various transactions. GAAP are more like accounting standards (Wikipedia, 2009). Next we have Contra-Asset Accounts, which is defined as an account which offsets another account. A contra-asset account has a credit balance and offsets the debit balance of the corresponding asset. A contra-liability account has a debit balance and offsets the credit balance of the corresponding liability (InvestorWords, 2009). Let us move on to Historical Cost, which is a measure of value used in accounting in which the price of an asset on the balance sheet is based on its nominal or original cost when acquired by the company. The historical-cost method is used for assets in the U. S. under generally accepted accounting principles (Investopedia, 2009). Okay, now there is the Accrual Basis vs. Cash Bonus Accounting. This is the difference between the two. In Accrual basis accounting, income is reported in the fiscal period it is earned, regardless of when it is received, and expenses are deducted in the fiscal period they are incurred, whether they are paid or not. Basically, you record both revenues and expenses when they occur. In cash basis accounting, revenues are recorded when cash is actually received and expenses are recorded when they are actually paid (Ward, 2009). Last but not least, there is the Accounting Standards Codification. Accounting Standards Codification (ASC) is a major restructuring of accounting and reporting standards designed to simplify user access to all authoritative U. S. generally accepted accounting principles (GAAP) by providing the authoritative literature in a topically organized structure. ASC disassembled and reassembled thousands of nongovernmental accounting pronouncements (including those of FASB, the Emerging Issues Task Force [EITF], and the AICPA) to organize them under approximately 90 topics. The ASC are those that oversee that all accounting and reporting standards are adhered to (Wikipedia, 2009). It is now time to move on to discuss and describe three sets of financial statements that are part of financial statements of companies /organizations. The three sets of financial statements we will be describing are The Balance Sheet, The Income Statement and The Statement of Cash Flows. The balance sheet also known as the â€Å"Statement of financial position† reveals a company’s assets, liabilities and equity (net worth). The balance sheet is divided into two parts that must equal each other, or balance each other out. The formula of the balance sheet is: Assets= Liabilities + Shareholder’s Equity. What this formula means is that assets, or the means used to operate the company, are balanced by a company’s obligations along with equity investment brought into the company and its retained earnings (Investopedia, 2009). Next we have the income statement, which measures a company’s financial performance over a specific accounting period. The financial performance is assessed by giving a summary of how the business incurs its revenues and expenses. It also shows the net profit or loss incurred over a specific accounting period, which is typically over fiscal quarter or year (Investopedia, 2009). Moving on to the last one, which is the cash flow statement. The cash flow statement allows investors to understand how a company’s operations are running, where its money is coming from, and how it is being spent. The cash flow statement is also a mandatory part of a company’s financial report, and has been so since 1987 (Investopedia, 2009). Now I will describe which is more useful, Net Income or Cash from Operating Activities? I believe that Cash from Operating Activities is more useful to companies because they can generate cash in several different ways. Three different ways to be exact, they are cash flows from operating activities, from investing activities, and financing activities. Cash from Operating Activities, in my opinion is the most useful because it paints the best picture of how well a company’s business operations are producing cash. After looking over the annual financial reports for Samsung, RTL Group and Lockheed Martin, I make the prediction that each company will continue to improve its net income as well as see a significant spike in their cash flow. As far as relevant information in regards to conglomerates, such as the IDOLS segment of the Fremantle Media North America, I was not totally sure how to get this information but I eventually continued to read the investor portion on the RTL Group website where I found out more information. All in all, I learned some new definitions when it comes to accounting and decision making. I thought this assignment was intense due to a lot of reading and research, but I believe I got through it well. I look forward to learning more about how accounting and decision making come together. References http://www.investopedia.com/articles/04/033104.asp http://www.investopedia.com/articles/04/031004.asp http://www.investopedia.com/terms/i/incomestatement.asp http://www.investorwords.com/5476/contra_account.html http://en.wikipedia.org/wiki/Generally_Accepted_Accounting_Principles

How Ponyboy Changes Throughht the Outsiders Essay

I hereby give my consent to have an athletic trainer, coach, team manager, emergency medical technician, nurse, medical treatment facility, and/or doctor of medicine or dentistry or associated personnel provide the applicant/participant with medical assistance and/or treatment and agree to be financially responsible for the cost of such assistance and/or treatment. I understand treatment for injury will be based on information provided herein. I hereby authorize emergency transportation of the applicant/participant to a medical treatment facility should an individual listed above consider it to be warranted. I recognize the possibility of physical injury associated with soccer, and hereby release, discharge, and otherwise indemnify the club, US Club Soccer, their sponsors, the USSF and its affiliated organizations, and the employees and associated personnel of these organizations, against any claim by or on behalf of the soccer player named above as a result of that player’s participation in US Club Soccer programs and/or being transported to or from the same, which transportation.

History (Otto von Bismarck) Essay Example | Topics and Well Written Essays - 2750 words

History (Otto von Bismarck) - Essay Example t on German and International politics through out his tenure and even posthumously his influence hovered around the diplomatic arena of Germany often impacting the foreign relations. Otto Von Bismarck was born on 1st April 1815 at Schà ¶nhausen, Brandenberg, Prussia. Bismarck was from an aristocratic family and both his father and mother were from noble blood. The military background of his father and the political background of his mother unified at an optimum level within Bismarck and in later period of life helped him to excel in life. Bismarck completed his schooling at the Friedrich-Wilhelm and Graues Kloster secondary schools. Thereafter he went to University of Gottingen (1832-33) to study law and later enrolled himself in University of Berlin (1833-35). Bismarck had a brief career in law and as a soldier but returned to his family estate following his mother’s death. In 1847 he married Johanna von Puttkammer and their happy married life reproduced three children, two boys and a daughter. Till his marriage there was almost no sign that this man one day will become one of the father figures of modern Germany. Rather his education and sophistication caught eyes as he was comfortable in English, German and Russian. He was also well versed in Shakespeare and Byron and used to quote them in his letters. It was in the year of his marriage that he became an elected member of newly formed Prussian legislature and owing to his conservative Lutheran background he shared an image of reactionary and royalist politician. His loyalty to the monarchy can be easily gauged from the fact that he was an open advocate of the ideology that god has entrusted the divine right to rule on the monarchy. If Bismarck’s election as a legislative member in Prussia is considered as his introduction to politics then year 1848 might be considered as the first step to famous hood. In 1848 a revolution swapped Germany and the king soon found him self to be safe only around the military

The Malware writers and Hackers Essay Example | Topics and Well Written Essays - 1250 words

The Malware writers and Hackers - Essay Example The hacking of today began as ‘phreaking’ in the early 70’s. When John Draper’s toy whistle generated the 2600 Hz tone to authorize free calls from telephone exchanges, it was more a prank and a quirk of a ‘kinky’ mind than anything more serious. In the late 70’s, it turned a trifle more serious with de-coding of bank accounts for defraud. It was around this time that the colourful ‘Captain Zap’ emerged as arguable ‘inspiration’ for a generation of hackers when he broke in AT&T clocks and brought moonshine discounts to people during sunshine hours. Righard J. Zwienenberg, Chief Research Officer at security software vendor Norman Data Systems, recalled that in 1988 people were writing viruses and malware mostly to become famous. Many early infectious programs in those years were written as pranks and not intended to cause serious damage to computer systems. Trainee programmers learning about viruses and their techniques wrote them for practice or to test them. Since then it has moved into a more organized crime field. The very fact that there was public outcry against allocation of FBI resources against hacking in the US in the ‘80s speaks a lot for the trivial position it occupied in the public psyche; even the 1985 published Hacker’s Handbook encouraged hacking as a sport! ... acking in the US in the ‘80s speaks a lot for the trivial position it occupied in the public psyche; even the 1985 published Hacker’s Handbook encouraged hacking as a sport! More recently, since the rise of widespread broadband Internet access, malicious software has been written with a profit motive in mind. It speaks of a dangerous trend with malware authors monetizing their control over infected systems and turning that control into a source of revenue. For instance, since 2003, the majority of widespread viruses and worms have been designed to take control of users' computers for black-market exploitation. Infected "zombie computers" are used to send email spam, to host contraband data such as child pornography or to engage in distributed denial-of-service attacks as a form of extortion. Another strictly for-profit category of malware has emerged in spyware -- programs designed to monitor users' web browsing, display unsolicited advertisements or redirect affiliate m arketing revenues to the spyware creator. Tools of the trade get more toxic: Nothing exemplifies the evolution of malware writers and hackers better than the tools they deploy. The 20th century hacker’s kit consisted of a motley assortment of a BBC Model B and Sinclair Spectrum computer, a Prism VTX 5000 and Cumana modem, a portable monitor, an Epsom printer, disc drives and floppies and an electronic organ for creating tones for phreaking. Today’s hacker uses far more sophisticated technology to achieve his nefarious ends – botnets or networks of compromised ‘zombie’ PCs began to be tapped into in 2003. Malware writers who compromised the computers with Internet worms realized that they could be rented out to spammers for a fee. As botnets created from compromised desktop PCs grew, they

Nation State and Transnational Entities Essay Example | Topics and Well Written Essays - 1500 words

Nation State and Transnational Entities - Essay Example This essay stresses that USA is a perfect example of a nation state. Though it is a multicultural society, it is regarded as a nation-state due to the existence of the shared American "culture." It has a territory that is composed of all the states; it also has a government as well as sovereignty. This paper makes a concludion that the European integration process has been characterized by two periods. These are; the Cold War and Second World War. After these two historical events, a majority of the European States recognized the need for cooperation. After the Second World War, Europeans learnt a lesson that encouraged them to test practically benefits that could accrue from European integration. The War had led to reduction of European power. In addition, this decline was an opportunity for the Soviet Union and the US to lead in terms of security, political as well as economic positions. These therefore pushed European leaders to put behind their differences and cooperate. The cooperation was intended to eliminate the causes of war and promote European political as well as economic union. It is worth noting that there were different reasons that motivated them. There was a group made up of states that had been destroyed following the war and were keen on reconstructing their economy as well as reestablish the lost international power. These states were prepared to sacrifice their national sovereignty so as to reach their goals.

OPERATIONS AND LOGISTICS MANAGEMENT Assignment Example | Topics and Well Written Essays - 1000 words

OPERATIONS AND LOGISTICS MANAGEMENT - Assignment Example Starting with a general definition of manufacturing process, manufacturing processes are a collection of methods that converts â€Å"naturally occurring raw materials into desired end-products† (Harrington, 1984). In other words, raw materials are collected and by means of a chain of production activities, are converted into end-products. A rather precise definition is given by Halevi (1999): â€Å"the manufacturing process is a chain of activities directed toward meeting a set of objectives defined by management.† The objectives include development and production of products, production of customer-designed products, and reproduction of products manufactured in the past. Although manufacturing environments differ due to the differences in industry types, the fundamental principles of manufacturing processes remain similar and common to all industry types. Classification of manufacturing processes primarily includes two broad categories: shaping and non-shaping processes, or rather specifically, primary shaping and secondary shaping processes. Primary shaping processes are also known as basic manufacturing processes, which are the oldest manufacturing processes and still the most used processes. These manufacturing processes are used to produce or manufacture a product directly to its usable form without any machining. So these processes are relatively cheaper. Examples of products made by using primary shaping processes include cast-iron articles, hot-rolled metal products such as channels, rods, bar stocks, etc. Secondary shaping processes are usually carried out for further refinement of products manufactured from the primary shaping processes. Some of the examples of products made by using secondary shaping processes are the hot-rolled products that are required to undergo further refinement in shape and size. This paper will focus particularly on the casting processes. Casting, also known as metal casting, is one of the

Business Strategy -------- (Degree Module) Essay

Business Strategy -------- (Degree Module) - Essay Example The portuguese were also involved in these early forms of globalization by the 16th century as they conducted their global explorations. These explolarions are known to have created connections between continents, world populations and economic systems. Colonization also largely contributed to globalization of trade, mixture of world cultures and religion. In the recen years, there has been a wave of globalization that can be attributed to four major drivers for change. These include technological advancement, social cultural aspects, economic and political drivers. Technological advancement has played a significant role in reducing the time and cost of travelling and transportation of goods. It has increased the efficiency of service delivery globally. For example, air transport has enabled traders in perishable commodities such as horticultural products to effectively transport them to differnt continents without suffering losses or incurring extra costs of rifrigeration facilities. Before the modern transport systems, it took a number of days to move from one country to another. Recent developments in communication technology have also had a significant impact on globalization. Global social interractions have been facilitated by the use of internet technology. More over, this technology has enhanced global trade since people can buy and sell products through the internet. Electronic banking has been on the rise and more and more people are engaging in online trade. It has also led to globalization of education whereby on line learning is cu rrently a major feature of modern education. As world economies strive to achieve economic growth, they are tending to engage in international trade where they engage in foreign direct investment. This has led to establishment of multinational companies with the aim of utilizing the available opportunities through expanding their markets in foreign countries. Financial globalization has been effective in

Training and Development evaluation in Human Resource Management Essay

Training and Development evaluation in Human Resource Management - Essay Example 2-3; Dransfield, 2000, p. 4-5). In HRM, training and development is meant to boost the performance of the workforce. The employees are put through a learning process that would assist them to acquire valuable knowledge, help them to improve their skills, rules, and concepts, by changing their attitude and their behaviour to work in the organisation. It is also called human resource development, learning and development or training and development (Rao, 2009, p. 8-11; Talwar, 2006, p. 1-3). In Human Resource management there are various different aspects, but this study aims at evaluating only training and development function of HRM and its significance in the organisation. The motive is mainly to study the magnitude of training and development and the various theories which different authors have stated to explain them. This will assist in capturing different point of view regarding training and development in the organisation. The study would also include the different types of tra ining methods which organisations generally utilise to coach their employees. This would assist in understanding the real life usage of the theories stated by the authors. Training assists in improving the knowledge and prepares the employees for new upcoming challenges. It is very important to train the employees to compete in the global challenges. According to Hamblin (1974), the evaluation process of training and development is an effort to gain information on the training process and the results of training on the employees. This is done to estimate the value that the training process has generated for the employer as well as for the employees. Wexley and Baldwin (1986) described that the training evaluation process is a system of gathering and studying the information so as to understand the ways to utilise the human resources in the best possible manner and achieve the mission, vision and objectives of the organisation. Previously the training and development processes were c riticized because of the lack of proper evaluation process (Mathison, 2004, p. 221). The yearly fixed targets were set for training and it was delivered accordingly, but none of them bothered to evaluate the results. So neither the positive effect of training was revealed nor was the negative aspects scrutinized and changed. No feedback system was there to take the opinion of the trainee employees, so improvement in the training process was not possible (Saks and Haccoun, 2011, p. 15-17). When it is the participants who decide and plan the training and development programs, it turns out to be a success because they know what they need to learn and what they already know about. So focusing accordingly on those areas in the training schedule is relevant. This is because training is indispensible for achievement and increasing productivity (Cornelius, 2001, p. 82-84). Training evaluation is a systematic process of analyzing and collecting the information regarding the programmes in tra ining. This is utilized by the human resource and training managers to plan and take decision regarding the effectiveness, relevance and the impact of the various components of training (Raab, Swanson, Wentling, and Dark, 1991). Since the companies nowadays are making huge investments for development and training, so training is no more a negligible issue in organization. For the employees in the organization,

Christian Worldview and Culture Essay Example for Free

Christian Worldview and Culture Essay Today’s cultural landscape has been shaped by the likes of MTV (entertainment), Steve Jobs (technology), and Mark Zuckerberg (social networking). Society often prefers accepting the â€Å"worldviews† of these and other influential people, rather than hearing the message of the Good News of Jesus Christ which offers redemption to a â€Å"fallen† world. We cannot ignore the reality that a vast majority of cultural advancements are produced by â€Å"non-Christian culture-makers, who, as they become more self-conscious and consistent with their anti-Christian stance, will express their unbelief in their artifacts with increasing boldness. Christians cannot dismiss the impact and relevance these contributions have made on society. One of the great challenges believers are confronted with is developing an understanding of the importance of expressing and sharing our Christian worldview in the midst of various competing ideologies. One of the hidden ideologies that secular culture promotes is that we can â€Å"take care of ourselves† thus, refuting any notion that we are dependent on Christ to meet every human need, including the need for salvation. Christian disengagement from culture is contrary to Christ’s example of Incarnation. Christ did not consider human culture unworthy of his attention and love. He set aside his divinity and put on human flesh so that he could engage us on a social and cultural level. The great commission is an affirmation of Christ’s desire for his followers to â€Å"go into all the word†, engaging culture and preaching the gospel. What is â€Å"Culture†? Culture can be defined using three different approaches: agricultural, sociological, and anthropological. The agricultural approach to defining culture â€Å"is derived from the Latin cultura†¦ meaning to plow or till. † Culture is understood from a farming or agricultural perspective which entails the â€Å"practice of cultivating the soil, producing crops, and raising livestock. † The reference to someone being â€Å"cultured† is drawn from this farming metaphor. Education in this sense is the â€Å"cultivation† of the mind. The sociological approach to defining culture deals with social class distinctions of â€Å"high† (elite) and â€Å"low† (mass) culture. This aesthetic standpoint is mainly concerned with the â€Å"intellectual and artistic achievements of a society. † High culture is associated with the highest ideals of what is (in a subjective sense) â€Å"good†. A cultured person is one who has been acquainted with and educated in the â€Å"finer things† of art, literature, music, etiquette, socialization, as so on. The anthropological perspective regarding culture is concerned with â€Å"the whole way of life of a group or society, not just its better achievements. † Unlike the sociological perspective, this approach does not make distinctions between sophisticated and primitive social groups. It simply acknowledges that all â€Å"activity† which is produced by a social group (texts, art, music, food, artifacts, philosophy, ethics, etc. is that group’s culture. H. Richard Niebuhr states, â€Å"[S]ocial life is always cultural† and culture is the product of â€Å"human achievement†. Humanity Was Created For â€Å"Good Works† Culture, as expressed by the creativity of human activity, is a reflection of God who Himself is a creative being. Human understanding of order and beauty is only possible because of God’s magnificent creation of the heavens and the earth. God validated the beauty of creation when He â€Å"saw all that he had made†¦ was very good† (Genesis 1:31). Man and woman were created in the divine image and likeness (imago dei) of God and were entrusted by God to care for and tend to His creation. Man was given the responsibility of â€Å"cultivating† the Garden of Eden and in doing so bringing glory to the Creator. Here we should take notice between the similarities of the word cultura (plow, till) and cultus which is a â€Å"veneration of the divine†. This should give us a greater insight regarding how â€Å"the human race [was] called to interact deliberately with the earth—[working, tilling, cultivating]—while at the same time lovingly serving his divine Master†¦ and worshiping his Maker. Adam â€Å"performed his culturative activities in response to and as a reflection of God’s creative acts. † Competing Worldviews All of humanity’s artistic and creative works reflect the worldview of those who created them. As a result of the Fall the imago dei has become distorted, causing humanity to shift the focus of their creative and culturative activities away from exclusive worship to God. As a result humanity has developed â€Å"unholy motives†¦ even though superficially [our creative activities] may be of some benefit. Man’s creative outlet is disoriented—seeking to glorify himself through the works of his own hands. Once we understand that all human creative efforts are a reflection of the inner beliefs and values of the mind and spirit, we can assess the intention of human activity properly. The Tower of Babel (Genesis 11) was the product of human efforts to succeed, using human ability, independent of God. Today’s â€Å"pop† culture seeks to create a new Babel in which human achievement and technological advancement create the false notion that we can live independent of God, or even worse, have no need of God. Thus, culture always reflects a society’s religious and philosophical values, â€Å"[flowing] out of the heart—as it were—of the society which produces it. † A Christian worldview based on God’s Word will discern the â€Å"the ideological bias of the medium and ideological content of the message of non-Christian (and Christian) artifacts. † This is essential for the Christian because there is no neutrality in the message embedded in the works of man. We are not idle spectators, â€Å"[We] must take sides at all times in everything [we] do. † Christian Approach to Culture (Christ and Culture) There has been much debate as to the extent in which Christians are to engage the culture that we live and worship in. Should Christians adapt a Monastic approach secluding ourselves from society? Or, are we to engage the world in such manner that our Christian distinctiveness is lost? H. Richard Niebuhr, in his book Christ and Culture, suggests several â€Å"Christian answers to the problem of Christ and culture. † Niebuhr offers five approaches Christians have historically taken in an effort to understand their position in Christ and involvement with culture. These are: â€Å"Christ against culture,† â€Å"Christ of culture,† â€Å"Christ above culture,† â€Å"Christ and culture in paradox,† and â€Å"Christ the transformer of culture. † The â€Å"Christ against culture† approach proposes that loyalty to Christ is a â€Å"rejection of cultural society†. He critiques this stance as a â€Å"radically Christian answer to the problem of culture†. Indeed, it is impossible for a Christian, or any person, to totally reject and remove themselves from the influence of and involvement with culture. God has taken the opposite approach. He did not reject the world when Adam sinned, but rather engaged the world and put into motion the plan of redemption through Jesus Christ. Christ stepped into our earthly realm and became subject to the influences and temptations of human culture â€Å"yet was without sin† (Hebrews 4:15). Christ’s relationship to culture was to use the elements of culture to reveal God the Father and the Kingdom of Heaven to fallen humanity. The second model, â€Å"Christ of culture,† is the opposite of the â€Å"against culture† model. It seeks social and cultural engagement with the world. It attempts to make the gospel meaningful to society by extending its reach beyond â€Å"a selected little band of saints† and is able to engage those of â€Å"high† and â€Å"low† social strata. While the effort to make Christ a part of culture may reach those who would remain otherwise unreached, there is a susceptibility to â€Å"distort the figure of the New Testament Jesus† in an effort to accommodate a social-gospel agenda. This is done by relegating Jesus into what we need him to be in an attempt to address our social and cultural problems. Jesus is a great humanitarian if we are fighting for human rights or a great teacher if we are engaged in philosophical debate. Again, this model can be useful in reaching out to the culture, but we cannot compromise the truthfulness of the gospel for a specific social agenda. The third paradigm is â€Å"Christ above culture†. This view proposes that â€Å"the fundamental issue does not lie between Christ and the world†¦ but between God and man. † By placing Christ at the center, and not against culture, this approach avoids separating â€Å"the experience of grace from cultural activity†. There are three distinct groups in this category: â€Å"synthesists,† â€Å"dualists,† and â€Å"conversionists†. Synthesists affirm â€Å"Christ and culture† (both/and) rejecting a â€Å"Christ or culture† (either/or) approach. They maintain that Jesus â€Å"is both God and man, one person with two natures† and that the works of human nature cannot be separated from the grace of God, â€Å"for all those works are possible only by grace. † Essentially, Christ cannot be against culture because God created nature. Likewise Christ’s incarnation allowed him to actively participate nd engage with the culture of his day. One area that could lead to problems in this approach is by synthesizing Christ and culture in such a manner where Christ becomes subservient to culture. If culture assumes the dominant role in this synthesis, the Church will risk becoming more â€Å"cultural† and less Christ-like because it has elevated culture to the same status as Christ through whom all things were made and exist and â€Å"without him nothing was made that has been made† (John1:3). The dualist approach sees â€Å"Christ and culture in paradox†. This view â€Å"makes sharp distinctions between the temporal and the spiritual life, or between what is external and internal, between body and soul, between the reign of Christ and the world of human works and culture. † There is a line drawn between God and â€Å"us†. In the dualist’s view all of human culture is fallen. For dualists the works of Christians within the church and non-Christians outside of the church are equally corrupt. The dualists are in a state of paradox since they cannot reconcile the concept of â€Å"law† and â€Å"grace†. They fail to realize that Christ came to earth to remove the line of separation between man and God. As Christians we must understand that while the world is in a fallen state and under â€Å"law†, at the same time it is under â€Å"grace† and we are to â€Å"go into all the world and preach the good news to all creation† (Mark 16:15). The third group that embraces a â€Å"Christ above culture† paradigm is the conversionists. â€Å"What distinguishes conversionists from dualists is their more positive and hopeful attitude toward culture. Conversionists see Christ as the transformer of culture. They embrace the redemptive work of Christ in the here and now. They are not looking to some eschatological future where one day they all will be restored. The conversionists have a hopeful outlook regarding culture and look forward to its restoration from a corrupt state. â€Å"Christ transforms the fallen culture in that â€Å"he redirects, reinvigorates, and re generates† the life of man from a corrupted state. Once man has been regenerated, he will produce â€Å"good works†. The transformative power of Christ in the life of fallen humanity redeems us: â€Å"For we are his workmanship, created in Christ Jesus for good works, which God prepared beforehand that we should walk in them† (Eph. 2:10). It is not our works which cause us to be redeemed but rather, our works are a testimony to the world that we are no longer bound by the curse of sin and corruption. Conclusion Because we live in a period of world history that offers the greatest tools and opportunities for cultural engagement, we cannot ignore the importance of understanding Christ role, through the Church, in today’s culture. To engage with culture, theology and ecclesiology needs to be both critical and artistic†¦ such engagements require theology to be open to the insights of cultural studies and alert to the ways in which contemporary culture is shaping religion. † Social networking sites, email, iPhones, cable TV, movies, music, art, and literature are the vehicles th at are being used to promote the beliefs and values of our society. Satan has done a great job in using culture to enslave society, tempting us to sin and forfeit our relationship with God our Creator. Our fleshly appetites are satisfied by images of sexuality, greed, power, and self-assertion. The danger of a culturally advanced society is that it seeks to replace God with its achievements. It seeks salvation, joy, peace, and prosperity via its own human efforts and imaginations. Because we have been brought from â€Å"darkness to light† we must shine the light of the gospel of Christ by engaging the culture in which we live, work, play, and worship. For this reason, every Christian must â€Å"seize the opportunity that the contemporary circumstances present to us and boldly set out to transform the earth. †

The Organisational Structure Of Fedex Commerce Essay

The Organisational Structure Of Fedex Commerce Essay Logistics is managing the flow of goods, information and other resources, including energy and people, between the point of origin and the point of destination to meet the requirements of consumers. The main functions of logistics include purchasing, inventory management, transportation, and warehousing. The transportation industry can be identified in three major sectors such as shipping, passenger transport and manufacturing of equipment. In this paper we discuss about shipping which is responsible for transportation of supplies. FedEx has acquired and realigned number of small companies and managed synergies in order to control more of the market. Acquisition strategy of FedEx has given opportunity to capture different areas of logistics and transportation business with different client base and locations thereby integrating their operations to achieve better synergies and economies of scale. Business without borders Having their own fleet enabled them to reconfigure their systems and reroute existing flights in order to take advantage of the markets. Same way feeding three costly networksair, ground, and information technology is extravagantly expensive. They operated in a Global scale in order to offer customers limitless opportunities thereby expanding customer base and achieve global economies of scale. FedEx involves in many Corporate Social Responsibility programs as a branding strategy by carrying pandas, penguins and whales across the countries to provide them with proper living conditions. Though this type of transportation is considered risky FedEx does this with affection in order to protect them. They maintain a strong brand name as a strategy and advantage of its brand image, the name that customers have counted on for reliable service and cutting edge technology. Frederick W. Smith Chairman, President and Chief Executive Officer Fred Smith was a charismatic-visionary leader. He pioneered the transportation field and founded FedEx when he was 27 years of age. He had a desire, a drive to lead the company. He was confident, intelligent and also had the job-relevant knowledge in the field. His military background helped him to believe that the FedExs people are more valuable than technology. Fred always started thinking outside the normal which made FedEx a great success. Though he was a risk taker and invested highly in IT he succeeded in the business because of his visionary thinking and determination to go ahead. Fred re-shaped the entire transportation industry. FedEx believes in leadership through accessibility which makes all forms of interaction with customers. (b) Transportation and logistics infrastructure within FedEx Corporation FedEx acquired its own fleet of transport while competitors were hiring space on commercial airlines and sub-contracting their shipments to 3rd parties. With this, the need for booking space in commercial vessels ceased and FedEx experienced cost advantage over other companies. Landing larger freight planes were allowed after the de-regulation of the airline industry and using these reduced the operating cost. After de-regulation of the trucking industry, FedEx established regional trucking system further reduced the cost. FedExs unmatched air route authorities and infrastructure make it the worlds largest express transportation company, providing speedy, reliable and time-definite transportation with easy access to the locations. To cut down cost and time, packages from all over the country were flown to a central point or hub at night where traffic lanes were comparatively empty. Packages were sorted, redistributed at the hub and again flown to their ultimate destination to reach them next day. Even with the limitations such as adherence to the skyline regulations, ground clearance and administrative issues, FedEx managed to make this a turning point towards their success. (Please refer annexure page à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ for more details) Value added services such as multiple warehousing, scanners given to drivers to capture package information and overnight distribution system were external factors contributed to the growth in FedEx business. Just-in-time inventory management created demand for speed and accuracy in transportation and shortened the lead time for companies Integration between FedEx and customers blocked them from going to competitors. How it helped FedEx Michael Porters Value Chain C:UsersvirginiaDocumentsMBAMBA-Second yearGlobal Corporate strategyVIRGI FED EXvalue chain.png How FedEx reduced cost by applying value chain (refer document New FedEx and dragon) Primary activities Outbound Logistics Processing time at the local offices was reduced since they did not need to fill forms and attend to customers individually. In FedExs point of view reducing processing time means reducing labour costs. FedEx has achieved tremendous savings by strategic implementation of IT. Tools such as just-in-time manufacturing and total quality management are adopted for inventory control and enhancing of service quality. Marketing and Sales Information on customers preferences, geographical data and traffic volumes of each web page collected automatically. These data could be used for strategic initiatives, planning and marketing. World Wide Web is a low cost media for advertising in the global market and discovers potential markets. Packaging in a timely fashion was one of the marketing tools they used. Customer Service FedEx discovered that its advanced IT systems contain a mother lode of information about the profitability of each client. They knew which customers create how much profit, which actually end up costing FedEx. Secondary activities Procurement Strategic plans are developed with suppliers to support the process and development of new services. Transactions are managed through Web to achieve greater efficiency. Further they are streamlined through Electronic Data Interchange. FedEx had agreed upon better dealings with the fuel with suppliers. Human Resources FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. They recruited correct people and top positions were filled with competent managers. Further incentives, profit shares and internal promotions are given to keep the staff moral high in order to make their processes less costly and effective. They motivated the front liners conducted a fair treatment program to all staff. Information Technology When customers log onto the FedEx system they could place orders to pick up and pay using the credit cards which made greater convenience. Moving the process to the internet reshaped the transportation industry. In applying systems like Cosmos, PowerShip, EDI and Netscape integrated services supplied to customers are enormous. 1 (c) Virtual Information infrastructure at FedEx Corporation How it helped FedEx provides its customers supply chain solution from the point of raw materials to end of the product life cycle. Each stage of the supply chain has IT applications and systems that have been implemented by FedEx in order to fulfill efficient customer solutions. Some of the systems were transportation management solutions, order processing and related distribution centre operations, fulfillment, just-in-time inventory control, purchasing and production which provide peace of mind throughout the entire distribution cycle. COSMOS is a customer oriented services and management operating system. This Centralized computer system kept track of all packages handled by the company. This was made possible by placing a bar-code on each point of pickup making greater reliability to its customers. Further data package movement, pickup, invoicing and delivering data to central data base. PowerShip Features such as Label printing, on-line packaging pickup request, package tracing and stored frequently used addresses of most active customers. EDI and Internet This allowed companies to build one-to-one relationship with customers was the perfect scenario for manufactures. They could match supply and demand without wastage. Agreement with Nescape to adopt their software as the primary technology for accessing its corporate intranet sites. Advantages of the Nescape are mentioned below. Customers would build integrated websites using FedEx application Free down load from fedex.com which incorporated a link enabling them to track packages directly from their own site. Enhancement to package-tracking service. Information with regard to 25 shipments can be checked simultaneously and forward same to three e-mail recipients. Some countries are able to access information in their native language. FedEx claimed to have the largest on-line client server network in the world that operated in real time Web based application 1994 (write) FedEx can reach customers in other countries more easily through internet. This will further expand operations at FedEx in the global market. A creative alliance with marketplace will allow FedEx to tap into the growing e-commerce market for consumers. Web surfers link different companies web sites, where they can order a variety of products and services. IT infrastructure will support supply chain operations. The FedEx website was launched in 1994 and included a package tracking application and allowed customers to generate their own unique bar-coded shipping labels. The web site provided speedy and customer focused features. OUTBOUND TRANSPORTATION AND DELIVERY ORDER MANAGEMENT MANUFACTURING INBOUND (PURCHASING) SUPPLIER Stages of the Supply Chain FedEx Systems Applications GIVS IMI Multiship Custom Clearance system Transportation Optimization system Global Inventory visibility System (GIVS) Inventory Management Systems (IMI) GIVS IMI Warehouse management systems (WMS) Transport management systems (TMS) Customer clearance system Enterprise resource planning ERP IMI (including invoicing) The FedEx Integrated Logistics Solution FEDEX SOLUTIONS FOR THE ENTIRE SUPPLY CHAIN Strategy Bob de wit Ron Meyer (Page 653) (Please refer annexure for detailed explanation of the systems and application of supply chain at FedEx) Evaluation FedEx has developed many innovative services that would not be possible without its strong IT capability. IT expansion at FedEx effectively created a barrier to new entrants in this industry. Even though FedExs coverage to supply chain through integrated systems by tightening, improving and synchronizing the various parts of the supply chain, it was no longer a competitive advantage but a competitive imperative as the customers saw the benefits of squeezing time and inventory out of the system. The virtual information infrastructure at FedEx immensely supported to maintain the market leadership in the past years. They have forecasted the future in a positive direction and implemented correct decision by funding on IT development. Throughout the years this has helped FedEx to reduce cost, minimize process time and become customer focused and ultimately increased the profit margins which helped in a growth in global GDP and International trade. Even though FedEx has highly invested on IT for upgrading on a periodical basis, technical issues such backup systems, virus protection, handling issues with web hacking have been successfully addressed in order to remain in the market leader position. BRANDING AND BUSINESS STRUCTURE UP UNTIL 19 JANUARY 2000 Mergers and acquisitions (MA) Introduction 2.0.1. Mergers Joining of two or more companies to form a single legal entity can be defined as a merger. The assets of the smaller company are merged in to the larger. Share holders of the smaller company (or the target company) will be bought over by the acquiring company. In general mergers take place in a friendly setting. Executives of the respective companies participate in a due diligence process to ensure a successful combination of all areas of business. 2.0.2. Acquisitions Purchasing of more than 50% of voting shares of a company by another company is an acquisition. Both companies can continue as separate legal entities. Acquiring company will be the parent company (or holding company) and the target company will be the subsidiary. Acquisition may take place through a hostile takeover by purchasing the majority of shares of the company in the open market. (Source:A Simple M Model for all Seasons by Bu Sam Rovit, David Harding, and Catherine Lemire) 2.0.3. Mergers and acquisitions strategies Mergers and Acquisitions are a common strategy in Global Logistics and Transportation industry by which companies in the industry expand geographically and increase the reach and access. 2.1 Benefits and limitations of MA strategies in the Global Transportation and Logistics industry 2.1.1. Benefits Obtain maximum value and create sustainable competitive advantage Increase output Obtain new technologies, expertise and provide entire new products Improved focus on core skills of the firm Improvements in use of the brand names Increased consumer welfare and overall cost reduction from the joint consumption of complementary products Fastest method to achieve growth Creating a broad and deep product portfolio Strength in storage sales and services Integrate technologies and practices across entire product line such as strong capabilities in data archiving, manage products to better address the regulatory compliance and market opportunity Capability to integrate disparate business processes and information into one common framework Quicker and cheaper growth of the organization, synergies of market size and distribution channels, easier finance (revenue and cost synergies), economies of scale, gaining customers, cost efficiencies, improved infrastructure. Achieving maximum benefit of synergies by integration Reduction in transaction cost and transportation cost Fulfilling increasing / complex customers demands Redesigning of the global supply chain Obtain excess capacity in terms of production and warehousing facilities Mergers and acquisitions improve market efficiency by capturing synergies between firms. May help in removing inefficient management or to respond to economic shocks 2.1.2. Limitations Most of the studies have shown that mergers have failure rates of more than 50 percent Acquisitions are complex and difficult to execute and manage successfully. The companies should have the ability to integrate the technical know-how and the resources to bring that know-how to market products. In mergers and acquisitions there may be a significant impact on corporate culture. The purchasing company sets the quality bar high for the people in the company to be acquired. The companies cultural norms will be will be reinforced by the innovation, collaboration and integrity and customer focus of those employees. Generally there are clashes in such a situation. Though companies expect the synergies from take overs, it is found that acquiring companies lose about 10% of their value during the first five years after mergers. 2.2. How FedEx Corporation managed the acquisition of Caliber Systems in 1998- whether it is a success or failure FedEx Acquisition History up to year 2000 YEAR ACQUISITION OVERVIEW 1984 Gelco Express International FedEx dramatically expands its presence outside of the U.S. with the acquisition of Gelco Express, a worldwide courier with service to 84 countries. 1989 Tiger International Inc. With the integration of the Flying Tiger Line, FedEx becomes the worlds largest full-service, all-cargo airline. The acquisition includes routes to 21 countries, a fleet of cargo aircraft including Boeing 747s, facilities throughout the world and Flying Tigers expertise in international airfreight. 1998 Caliber System Inc. FedEx creates FDX Corporation (later renamed FedEx Corporation) and grows its portfolio of services with the addition of ground small-package carrier RPS (now FedEx Ground), Western U.S. less-than-truckload carrier Viking Freight (now part of FedEx Freight), Caliber Logistics (now FedEx Supply Chain Services), Caliber Technology (now part of FedEx Services) and Roberts Express (now FedEx Custom Critical). 2000 Tower Group International Inc. World Tariff Ltd. FedEx Corp. creates FedEx Trade Networks. Today, FedEx Trade Networks is one of the largest-volume customs entry filers in North America and provides FedEx customers with end-to-end transportation and customs clearance solutions around the world. acquisitions history.cfm.htm 2.2.1 Caliber Systems FedEx acquired caliber systems in 1998 and five separate subsidiary companies were formed such as Federal Express, RPS (Roadway package Systems), Robert express, Viking freight and FDX Logistics. They focused mainly on the small package business. Each subsidiary was managed separately and was responsible for its own accounts. Caliber had developed its expertise in moving raw materials, plates of steel bars and managed in work-in-progress. It manufactured cars and fork-lift trucks. After acquisition FedEx started offering other services besides express shipping. 2.2.1.1. Federal Express Federal Express was the world leader in global express distribution. They offered 24 to 48 hours delivery. Also was the leader in overnight package delivery business. Goods shipped ranged from flowers to lobsters to computer components. 2.2.1.2. RPS RPS was the second largest ground small package delivery of business-to-business. Also it was a low cost, non-union, technology-savvy company. Shipments were done in one to three days. RPS had the lowest cost models in the transportation industry. With the take-over by FedEx, RPS moved on to business-to-consumer delivery service and took advantage of electronic commerce. They operated through independent truckers who are contractors and specialized in delivering small packages between businesses at rates lower than UPS. 2.2.1.3. Viking Freight This was the first less-than-truck-load freight carrier in western USA. They shipped 13,000 packages per day. 2.2.1.4. Robert Express This was the worlds leading surface-expedited carrier for non-stop, time critical and special-handling shipments. This was the smallest company within the FedEx group. Robert Express Exclusively allowed customers greater control at a price. They had a limited number of aircrafts but they had to pay for use and crew time. 2.2.1.5. Caliber Logistics Caliber logistics was the pioneer in providing customized, integrated logistics and warehousing solutions worldwide. The acquisition of caliber brought over the-road transportation and warehousing capabilities. Caliber Logistics was renamed as FDX Logistics. 2.3 Merging of Caliber Logistics and FLEC New company was FedEx Logistics brought together all splintered operations of logistics in all the subsidiaries, streamlined costs and presented one menu of logistic services offered to clients. They aligned R D of systems upon common, agreed platform. 2.4. HOW FEDEX MANAGED THE ACQUISITION OF CALIBER SYSTEMS? Acquisition contributed to reinforce FedEx commitment to become more than just a delivery company. With the acquisition, company image was transformed to a holding company. Accordingly company changed its name to FedEx Corporation. FedEx managed the subsidiaries by operating independently, each company focused exclusively on delivering the best service for its specific market. They competed collectively. Under the FedEx banner they offered entirely different services, different customer terms and different sales procedures. Usage of IT resources spread among the group. FedEx introduced a one-stop shopping as solution for all levels of supply chain. This was the ultimate goal of FedEx in order to bring the subsidiaries closer together to create synergy. FedEx brand name had been inculcated in the peoples minds throughout the years. This strong global brand name and the brand image created among the entire world from the inception had sufficient market for FedEx to operate even after acquisition. Operating under the FedEx banner created customer confidence although the companies acquired were operating in their own names. Acquisition improved FedExs non-express delivery capabilities and brought in other new businesses to the company. When UPS had the advantage of promoting just one brand, UPS was to sell the entire company and the services it offered. Acquisition of Caliber Systems enabled FedEx to match UPS in offering a wide variety of delivery options. But, UPSs extensive network for making door-to-door deliveries was far ahead of FedEx. Business at UPS was slightly affected after the acquisition of Caliber Systems by FedEx. Further the strategies adopted by the FedEx management such as enhancing business capabilities though IT and building up strong relationships regularly with clients and communication with the global market, created competitive advantage at the time of acquisition of the Caliber Systems. Hence acquisition of the Caliber Systems by FedEx was a success. 3.1 DEVELOPMENT OF INTERNET MARKET AND E-TAILING http://media.techtarget.com/searchCIO/images/spacer.gif http://media.techtarget.com/searchCIO/images/spacer.gif Internet is the extensive, worldwide computer network available to the public. It is interconnected to computer networks that are connected by internetworking. E-tailing (electronic retailing) means the selling of retail goods via Internet. E-tailing done mostly with business-to-consumer (B-to-C) transactions. E-tailing began to work for some major corporations and smaller entrepreneurs were started around year 1997. (Source: http://searchcio.techtarget.com/sDefinition/0,,sid182_gci212079,00.html) 3.2. How internet/e-tailing had been applied to the transportation and logistics industry? At the time when the web based purchases were growing, UPS one of FedEx competitors were ahead of them in terms of ground transport. FedEx identified the booming opportunities arising with the growth in internet based purchases. FedEx bought over Caliber System in January 1999 and the aim was to enhance the reach of business to business coverage while catering to increasing demand from internet based buying. FedEx anticipated growth in ecommerce and planned to start FedEx Home Delivery to co-op specializing in business-to-consumer e-tailing. At that time, in 1997 FedEx was handling shipping for only 10% of all goods sold online, compared to the 55% handled by UPS. In 1999 FedEx signed up with CISCO with mission of critical one stop online source for sales tools and client information. Web portals such as Yahoo! had been offering store-building services for some time, as did all other Internet service providers. By that time UPS, their main competitor was had been offering the same services since 1997 through vendors Harbinger Corp. and IBM Corp. FedEx started to offer its ecommerce Builder Internet platform free to clients later, with e-commerce services. 3.3. Non-financial performance at FedEx in the context of Internet market and e- Tailing Internet was the basis for competition. It opened opportunities in logistics management as most businesses started integration with customer supply chains using the internet. FedEx had the right business model to take advantage of this opportunity. Growth in e-tailing needed assistance of express transportation to fulfill the customer expectations and FedEx already was a giant in the field achieved advantage over the situation. FedEx was the leader in the market and enjoyed a strong brand image in the transport and logistics industry. Even though they identified and anticipated enormous opportunities which came up with the development in e-tailing, UPS was the leader in ground transportation. FedEx made a smart move by buying over Caliber Logistics and later integrating all systems and a powerful technical architecture that enabled internet commerce usage. The competition became fierce with the as the major transportation companies were betting big on technology. Even though FedEx were investing millions on IT and introduced internet in 1994, it became the industry norm rather than a competitive advantage. FedEx developed all its software in-house where competitors like UPS formed strategic alliances with Open Market Inc., and worked with IBM. One of main reasons for FedExs successful performance financially and non-financially was that they identify anticipate the changes and adopt themselves accordingly. 3.4. Financial performance at FedEx in the context of Internet market and e-tailing Online holiday shopping, which accounted for $650 million in 1997, grew to rapidly $4 billion over the holiday season of 1999. By the end of year 2000, more than 20,000 client Web sites were linked to the FedEx Marketplace, and the ecommerce Builder unit had secured around 2,000 customers. Despite the analysts concerns their earnings totaled $688 million on sales of $18 billion. The expected growth associated with e-tailing was USD 7.0 billion in 2000 and USD 327 billion in business-to- business presented enormous opportunities for FedEx. (Source: http://ecommerce.hostip.info/pages/444/Fedex-Corp-MOVE-INTERNET.html) Annual report of 1999 reflects that the growth in revenue as follows. Year Growth in Revenue 1999 5.67% 1998 11.48% 1997 11.91% 1996 8.5% 1995 13.76% FedExs average revenue growth is around 10%. In year 1999 this has reduced to 5.67% which they claim as a result of the high fuel price. FedEx has invsted in IT and was Market share growth REFER ANNUAL REPORTS DATA