Determining Attributes to Maximize Visibility of Objects

Determining Attributes to Maximize Visibility of Objects A Critique on  Determining Attributes to  Maximize Visibility of Objects Muhammed Miah Gautam Das Vagelis Hristidis Heikki Mannila Vidisha H. Shah 1. Summary of the published work Das, Hristidis, and Mannila (2009, p. 959) discussed about the ranking function and top k retrieval algorithms that helps user (potential buyers to search for the required product from the available catalog. The problem is how a user (potential seller) should select attributes of new tuple that the product stands out from the other available products. So there are several formulation that were developed by the author and few that are already in practice. According to authors, to run a query(search) keywords are entered on basis of which search is conducted (p. 959). The query anserwing system may return all the values that fulfill the condition it is also called as unranked retrieval or Boolean retrieval, or can rank the answers and return top k values known as ranked retrieval or Top-k retrieval. The example given by the author is objects can be ranked on the attribute based on price or based on relevance. The example and a problem related to it is described by the author. A user wants to classify an ad to rent an apartment in an online newspaper (p. 959). The given ad (tuple) has various attributes like number of bedrooms, location and so on. The cost factor is also involved in any ad so accordingly attribute that will provide better visibility should be selected. To understand which attributes provide better visibility we can built it on basis of previous sellers recommendation (tradition technique) or an argument by which we can view the ranking function buy which we can understand which attribute will lead to high ranking score. Example adding an attribute swimming pool can increase the visibility, or a catchy title or indexing keywords (for an article). Let D be the database of some product that has been advertised already (competitor). Author is considering that the database can be a relational table or a text document (p. 960). If database is a relational table then each tuple i n the table is a product and every column is an attribute related to the product. If database is a collection of text document then each document contains data regarding a specific product (ad). The set of queries or search conditions that have been executed in past by the user is stated as Q. therefore Q is the â€Å"query log† or â€Å"workload†. The query log is the record of the queries that have been used buy the potential buyers in the past. So the query could be like SQL query or query based on key word that will return a tuple from D(database). The problem given by the author is when a D(database), Q(query log), new tuple t and integer m are given determine best m attributes for tuple t such that when the shortened version of the tuple t with m attributes is inserted in d then the number of queries from Q retrieving tuple t is maximized (p. 960). In this paper variant of m is also considered that is when m is given by the user or when m is not mentioned. In this paper author has consider several variants like Boolean (unranked retrieval) (P 960), categorical variant, text and numeric data variant and conjunctive and disjunctive query semantics. Budget variant is also considered where in if m is not given the objective of maximizing the visibility is achieved keeping m minimum. No- budget variant is also considered where value of m is not given and the only aim is to gain maximum visibility of the object and for that all possible attributes can be added. In the preliminaries section author describes that for the given database D it contains tuples {t1, t2,†¦.tm}. Each tuple t has various attributes { a1, a2,†¦. an}. Tuple t will have either value 1 or 0. 0 implies that the attribute is absent and 1 implies that the feature is available. Tuple Domination means that if a tuple has all attributes value 1 that that tuple dominates. Tuple compression of t which has m attributes. It retains all 1’s in m and converts rest all attributes to 0 (p. 961). In Conjunctive Boolean with query log(CB-QL) variant the problem definition stated by the author is when a Q with Conjunctive Boolean retrieval semantics, tuple t, and integer m are given then have to compute compressed tuple with m attribute with maximum visibility(p. 961). For this problem author uses NP-Completeness Results and derives the Theorem that the decision version of CB-QL problem is NP-hard. Author explains various algorithms for Conjunctive Boolean with query log (p. 961). First is Optimal Brute Force Algorithm. As stated earlier that CB-QL is NP-hard so during worst case optional algorithm will run in polynomial time. The problem can be solved by a simple. This problem can be solved by simple brute force algorithm. So can be called as Brute Force-CB-QL which will consider all the combination of all m attributes of the tuple t such that the combination will satisfy to achieve maximum visibility among Q. In Optimal Algorithm Based on Integer Linear programming an ILP framework CB-QL can be described as follows, new tuple t be a Boolean vector has various attributes {a1,a2,†¦an}. Q be the query log and S be the total number of queries in query log. So the task is to This integer linear formulation is attractive unlike other general IP solvers, ILP solvers and are also usually more efficient(p. 962). According to author in Optimal Algorithm that is Based on Maximal Frequent Item Sets according to the author this algorithm is based on Integer Linear Programming, but this has certain limitation so author says it is impractical if there are more than few hundred of queries in the Q query log. The author has develop an alternate approach for the same which scales large query logs very well (p. 963). This algorithm is called MaxFreqItemSets-CB-QL, for this author has defined the frequent item set problem, Complementing the Query Log, Setting of the Threshold Parameter, Random Walk to Compute Maximal Frequent Item Sets, Complexity Analysis of a Random Walk Sequence, Number of Iterations, Frequent Item Sets at Level M _ m, Preprocessing Opportunities, The Per-Attribute Variant. Author says in Greedy Heuristics algorithm becomes slow for large query logs when maximal frequent item set based algorithm has better scalability then the IPL based algorithm (p. 964). So author has developed suboptimal greedy heuristic for solving CB-QL. The algorithm consist of ConsumeAttr-CB-QL computes the number of times each attribute appears in Q. Using this top m attributes that have highest frequency is computed. The algorithm ConsumeAttrCumul-CB-QL first selects the attributes from the query log Q that has occurred maximum times and then finds the attribute that occurs second highest in the Q, and so on. The algorithm ConsumeQueries-CB-QL picks the query with minimum number of attributes first, and then selects all attributes specified in the query. In next section author explains problem variant for text data. In the text database there is a collection of documents, and each document consist a data of a particular ad (p. 965). The problem definition for text data is that query is a set of keywords and have to retrieve top-k documents via query specific scoring functions and make the document maximum visible. According to author text database can be directly mapped into Boolean database (p. 965). So the algorithm and the working can be made similar to that of Boolean Data but author says that there is a problem with attribute selection for text data is NP-complete. It can convert it into Boolean considering each key word as a Boolean attribute. So according to author since text database can be converted to Boolean database in the algorithm for text data the are two issues firstly to view each text keyword as a Boolean attribute in query log Q, and none of the optimal algorithms are feasible for text data (p. 965) . Second issue is that in text data the scoring functions that are used takes account of the document length and leads to decrease the score if keyword has low frequency. In the next section author has described about the experiments that were conducted and there results. For this experiments system that was used had following configuration P4, 1 GB RAM, 3.2- GHZ processor, 100 GB HDD, Microsoft SQL Server 2,000 RDBMS. Algorithms were implemented in C# Language, for backend RDBMS and connectivity was done using ADO. 2 data sets were used for Boolean data and publication titles were used for text data experiments. 185 queries in query log were created for the experiments, 205 distinct keywords were created by other students. The experiment worked well for Boolean data CB-QL where top m attributes were given and had maximum visibility for 185 queries. Individual experiments were done to calculate the execution time of each algorithms of CB-QL. Various statistical data is given by the author that gives how individual algorithm runs under various workload. Various similar experiments were done for text data also and its algorithm and similar statistical d ata is given by the author (p. 965). In the next section various other problem variants for Boolean data, categorical and numeric data are considered. In that author has first explain Conjunctive Boolean-Data (CB-D) in which author describes its problem definition for maximum visibility given D(database), Q(query log), t (new tuple) and m(integer). For the given problem definition complexity results for CB-D and its algorithm are given by the author (p. 967). Then next variant considered is Top-k – Global Ranking (Tk-GR) and Top-k – Query-Specific Ranking (Tk-QR) and in that author considers Top-k retrieval using Global and Query-Specific Scoring Function. Then problem definition for Tk-GR and Tk-QR is stated by the author and then its complexity and algorithm for the same are given(P.968). Next variant considered by the author is Skyline Boolean (SB) where skyline retrieval semantics are considered then problem definition for SB then its complexity and algorithms are discussed. In the similar way remainin g variants Conjunctive Boolean—Query Log—Negation (CB-QL-Negation), Maximize Query Coverage (MQC), Categorical and Numeric Data are discussed by the author(P. 969). In conclusion author describes that how the best attributes for the problem can be selected from the data set given query log. Author has presented variants for many cases like Boolean data or categorical or text data and numeric data (p. 972). And has showed that even though the problem is NP complete the optimal algorithms are feasible for small inputs. Author has also presented greedy algorithms that can produce good approximation ratio. 2. My Opinion on published work The use of internet and network has increased tremendously and with that the data available on network has increased but the main problem is information to knowledge conversion that is finding data that is useful to the user, over spam. The algorithm discussed by the author can be used to improve the visibility of the document. In the paper author has not just given algorithm for Boolean type data but also text data and other variant that is the algorithm can be used for real time data that is in various forms. The main focus of the author is on potential seller and what all attributes should be added to maximize the visibility of the advisement or the document on the web so that the potential buyers can view that document in first few options, but this can be used other way round to and using this spam can be created, a document that is a fake document that has various attributes which are not true but are added added to gain maximum visibility, which should not be even displayed in the given category. The author makes assumption about the competitors or say other advertise, and assumptions about the users preferences are made as well. The queries in the query log where written by random students and not according to what actual users want, so there is no guarantee that this will work equally well in real time environment and will actually maximize the visibility with real time users and on real network. As given by the author in every problem definition of every variant that given D database and given Q query log but in real time for many application neither D(database) nor Q(query log) is available for analysis so user have to make assumptions about the competitors and users (potential buyers) need and there after have to decide the Top-k attributes from the subset of all the attributes that will help the user to achieve maximum visibility with minimum number of attributes. In the paper the author has given various variant by which the visibility of the object can be maximized in various cases and has various optimal algorithms and greedy algorithm. Optimal algorithm gives optimal outputs but works well for small inputs only as and when the size of input increases the algorithm does not work well. Greedy algorithm produces approximate results that can be seen from the experiments done by the author with various variants. According to Ao-Jan Su, Y. Charlie Hu, Aleksandar Kuzmanovic, and Cheng-Kok Koh Page rank of any document or advertisement is not only depended on the attributes but also on key words in host name, the key words in the URL, HTML header so with the selection of proper attributes in the document user also needs to keep a check on above mentioned factors also to maximize the visibility of the object.(2010, P. 55) Angelica Caro has given a table of Data quality and visibility rankings for Spanish university portals. In which author has given DQ* ranking, Visibility ranking, Partial visibility rankings in terms of Site, Links and Popularity, Distance* where *DQ means data quality and *Distance between the data quality and visibility rankings. Teal numbers indicate the portals that are relatively close in both rankings. So from the result given by the author it is seen that there is not a precise order that is the data quality of a site can be ranked 1 but visibility is 19 because it is based on other factors also like its popularity, links, sites and distance. So even if the DQ is not very good but it is popular or it has many incoming links can lead to improve the overall ranking of the page and thereby maximizes the visibility of the page. The statistic of the site that has ranks first in visibility is data quality is 5 visibility is 1 site 1 links 1 popularity 3 distance 4 so it can be seen that to gain maximum visibility we cannot just depend on attributes of the data that is not just data quality but there are various other factors that is required to be considered to improve visibility of the object, that is not considered in the paper by the author.(2011, p. 46). References Ao-Jan Su, Hu, Y.C., Kuzmanovic, A., Cheng-Kok Koh (2010). How to Improve Your Google Ranking: Myths and Reality.2010 IEEE/WIC/ACM International Conference onWeb Intelligence and Intelligent Agent Technology (WI-IAT),1, 50-57.doi: 10.1109/WI-IAT.2010.195 Caro, A., Calero, C., Moraga, M.A.(2011). Are Web Visibility and Data Quality Related Concepts?.Internet Computing, IEEE, 15(2), 43-49.doi: 10.1109/MIC.2010.126 Miah, M., Das, G., Hristidis, V., Mannila, H. (2009). Determining Attributes to Maximize Visibility of Objects.Knowledge and Data Engineering, IEEE Transactions on,21(7), 959-973.doi: 10.1109/TKDE.2009.72

Health Spa

Space aims to be the premier spa/salon in the Raleigh, NC area. Through a unique combination of offered services and products, they will quickly gain market share. SoulSpace will provide customers with a relaxing, rejuvenating atmosphere where all of their mind and body needs can be met. The business will be set up as a partnership with Steve Long, Debby Long, and Linda Hill-Chinn owning equal portions of the operation. Products and Services SoulSpace offers a wide variety of mind and body healing services and products.The salon aspect of the business will provide both males and females with any type of hair styling services. The spa business is devoted to providing holistic methods of massage, body work, and energy work. This is all done in a relaxing, serene setting. Location SoulSpace has chosen Raleigh, NC as their city for the business venture. Raleigh has consistently over the last few years been voted the best place to work and live in the USA, frequently making the top five a nd ten lists of Forbes, Money, and Inc. magazines.Raleigh has one of the most educated populations that loosely correlates to earning potential, or at least indicates a higher average household income. Additionally, the downtown  area has undergone a recent renovation that has attracted a lot of new businesses as well as become a hot urban area. Competitive Edge SoulSpace's competitive edge is their unique combination of services, location, and customer-centric focus. Both the extraordinary services and location has been detailed previously. SoulSpace has set out since its inception to provide quality, dependable services.SoulSpace has an innovative training program that is extensive in its depth, properly training employees to provide an unprecedented level of customer service. All customers will leave SoulSpace with a feeling that their needs were met well beyond any expectations that they previously had and far better than any competitor. This customer-centric business model is not just rhetoric, there are financial incentives in place for employees to offer unprecedented levels of service. This will ensure a high rate of return customers, allowing SoulSpace to meet their ambitious goal of 90%. FinancialsSoulSpace has forecasted substantial sales revenues by year two. Also by year two the business will reach profitability and have achieved  a healthy profit before taxes. When SoulSpace begins their fundraising efforts they will consider options such as LLC status to replace the partnership business formation that they have currently adopted. SoulSpace is an exciting business that provides a combination of sought after services that are not currently offered by a direct competitor. SoulSpace will provide a relaxing, serene setting for a variety of mind and body rejuvenation services for the booming Raleigh population. . 1 Objectives The objectives for SoulSpace are outlined below: 1. Substantial sales  revenue by end of second year. 2. Profit before ta x by end of second year. 3. Have clientele return rate of  90% by end of first year. 4. Become established community destination by end of  first year. 1. 2 Mission SoulSpace will provide a comforting, yet stimulating, atmosphere in which customers will be able to relax both their body and mind, reconnecting their daily lives to their true purpose through a wide range of holistic methods including massage, body works, energy works, and hair styling.SoulSpace will establish itself as a dependable destination to which they can always come to escape the stresses of life, and rejuvenate their energies, their souls, and their lives. 1. 3 Keys to Success 1. Quality and skilled employees familiar with energy work and oriented to a soothing spiritual disposition. 2. Establish trust within the community that each customer's needs will be taken care of during every visit. 3. Easily accessible location. 4. Effective advertising. Company Summary SoulSpace Holistic Spa and Salon is a new des tination offering customers the unique combination of hair styling, massage,  body and energy work, and raining, all in one beautifully serene setting. Soulspace will offer all ranges of hair styling, therapeutic massage, manicure, facial, sauna, Reiki, therapeutic touch, and specific complimentary product offerings. The goal and promise of SoulSpace can be summed up in our name and slogan:  SoulSpace Holistic Spa and Salon–Rejuvenate Your Life! 2. 1 Company Ownership SoulSpace, at this time, is a privately held partnership, owned by Steve and Debby Long and Linda Hill-Chinn. In the course of fund raising, we will explore the feasibility of both a partnership, and a limited liability partnership. . 2 Start-up Summary In the following  table, the start-up cash has been marked for the estimated amount needed to cover operational expenses for the first two months. Start-up Funding| | | Start-up Expenses to Fund| $94,000| Start-up Assets to Fund| $66,000| Total Funding Requ ired| $160,000| | | Assets| | Non-cash Assets from Start-up| $6,000| Cash Requirements from Start-up| $60,000| Additional Cash Raised| $0| Cash Balance on Starting Date| $60,000| Total Assets| $66,000| | | | | Liabilities and Capital| | | | Liabilities| | Current Borrowing| $0| Long-term Liabilities| $0|Accounts Payable (Outstanding Bills)| $0| Other Current Liabilities (interest-free)| $0| Total Liabilities| $0| | | Capital| | | | Planned Investment| | Investor 1| $66,000| Investor 2| $47,000| Investor 3| $47,000| Additional Investment Requirement| $0| Total Planned Investment| $160,000| | | Loss at Start-up (Start-up Expenses)| ($94,000)| Total Capital| $66,000| | | | | Total Capital and Liabilities| $66,000| | | Total Funding| $160,000| Start-up| | | Requirements| | | | Start-up Expenses| | Legal| $4,000| Stationery etc. | $2,000| Brochures| $3,000| Construction/Design| $30,000|Insurance| $3,000| Rent| $20,000| Research and Development| $0| Expensed Equipment| $15,000| Other| $17 ,000| Total Start-up Expenses| $94,000| | | Start-up Assets| | Cash Required| $60,000| Start-up Inventory| $6,000| Other Current Assets| $0| Long-term Assets| $0| Total Assets| $66,000| | | Total Requirements| $160,000| 2. 3 Company Locations and Facilities Target sites for SoulSpace  include downtown Raleigh in the Warehouse District and Art Districts, West Raleigh near Entertainment Sports Arena, and a  rural area off route 40/440 between Raleigh and Cary.SoulSpace will need at least 4,000 square feet (sq. ft. )  of space. Initial estimates put leasing between $12/sq. ft. to $28/sq. ft. (inclusive of tax and accommodations). Contact has been made with Mary Hobbson of Grub & Ellis Real Estate for 4,200 sq. ft. at 510 Glenwood Avenue downtown Raleigh. This site is within the target priority area in part of the Warehouse District in what is now referred to as Glenwood South. The lease is $28/sq. ft. , making estimated payments at $9,800/month, the most expensive of all targ et sites.We also have met with Peter Pace of York Properties when shown the space available at 200 West Street in Raleigh's Warehouse district. This space is in priority target range, and will be two blocks from the Raleigh Commuter Rail Hub due to open in the next five to eight years. The location is spacious at 10,000 sq. ft. , with first floor (5,000 sq. ft. ) leasing at $12. 50/sq. ft. and the basement floor (5,000 sq. ft. ) leasing at $8/sq. ft. , which averages out to $10. 25/sq. ft. for the entire 10,000 sq. ft. location.This makes this space cheaper than the other locations, and has twice the space. We have also met with David Stowe of Anthony Allenton Real Estate when shown space at the Royal Bakery on Hillsborough Street across from Meredith College. This location is within priority target, and has 6,000 sq. ft. at $20. 60/sq. ft. This site is extremely attractive for it offers many accommodations such as plumbing, electrical, and hvac, that will save us tremendously on co nstruction costs, thusly counterbalancing the expense of rent, which is only $300, over our high-ended estimated budget.Also, this space is primely located on Hillsborough, 1/4 mile from the Beltine, and two miles from Highway 40. It is also the site of a future Commuter Rail Station. They have also built a large parking decking which will be free to all patrons. Products and Services SoulSpace will provide customers with personal beautifying and relaxational services and complimenting products, as well as training in specific forms of energy work, accessible materials on a wide range of health-related topics, and the option to purchase artwork displayed in SoulSpace.Explanations and/or consultations will be provided on all services and products if needed. 3. 1 Product and Service Description 1. Men and Women Hair Styling:  Men's  ($30 average)  and women's  ($40 average)  color ($75), perm ($80), and combos ($80-$120). Selected hair care products (shampoos, conditioners, cleansers, brushes, mirrors) will be sold as well. 2. Body Works:  Massage ($60), other massage/body works ($65 average), facials ($60 average), manicures ($45), pedicures ($50-$65), waxing ($20 average), aromatherapy ($40), and combos ($60-$200 depending).Specific complementing products will be sold as well. 3. Energy Works:  Reiki (1/2 hour $35, 1 hour $60), energy revitalization (1 hour $60), and therapeutic touch (1 hour $60). Customers will include  people wishing to strengthen their physical body, mind, and spirit through the cleaning and revitalizing of their energetic system (i. e. , aura, human energy field). The Reiki offered will be traditional Usui Shiki Ryoho, the predominant form of Reiki practiced worldwide, which originated in Japan from it's rediscoverer Dr. Mikao Usui. Reiki is a hands-on â€Å"stepping† method of balancing the energy field.Energy revitalization and therapeutic touch are energy field cleansing and revitalizing techniques working with t he outer levels of the energy field along with Reiki. 4. Artwork: Most of the artwork in SoulSpace will be  by local artists, for sale to the customers. SoulSpace will earn a 15% commission on each piece sold. This adds an extra element of community integration to SoulSpace with an added emphasis of the art being from beginning artists, and that the art be spiritual and/or modern in form. 3. 2 Competitive Comparison There are many salons in the greater Raleigh area but no direct competitors.There are many places offering massage, but there are only ten day spas, of which only four are a spa/salon. There is one place offering energy work, in Clayton (30 minutes southeast from downtown Raleigh). All energy work practitioners are private, of which there are only ten working full-time, with most of them concentrating on other alternative modalities, and an estimated ten (twenty at the very most) part-time energy practitioners. Not including Chapel Hill and Durham, the above service an estimated population of at least 800,000, with that figure growing by an estimated 6,000 persons daily. . 3 Sales Literature Services brochure, logo/slogan with advertising to be included, and a planned website. 3. 4 Fulfillment SoulSpace services sell themselves as a natural way to rejuvenate one's life. 3. 5 Technology SoulSpace will sell complementing products of the highest quality that have not been created through the testing of animals, and are of the latest scientific knowing for effecting the desired results for body beautification and energetic balancing maintenance. 3. 6 Future Products and Services SoulSpace will add healing touch when Steve Long earns his certification.SoulSpace will always  remain involved with the best spa relaxational techniques offered, and will implement them if deemed appropriate and feasible for SoulSpace clientele. Market Analysis Summary There are no exact competitors, and few related competitors in the greater Raleigh area. There are no rel ated competitors in the downtown Raleigh area. The space at 510 Glenwood was recommended to us by the managing realtors because they had targeted that space for a spa type tenant. By nature of the service SoulSpace will provide, success will be readily achieved. 4. 1 Market SegmentationOur target market will be divided by salon customers and spa customers. Salon customers will be from every age and gender; however, since the salon and spa will be in direct association with each other, we expect that the spa market segment will greatly affect the salon market segment. Thusly, our target market segment will be male and female professionals and retirees, from the age of 25, with individual and household incomes greater than $25,000. Market Analysis| | | Year 1| Year 2| Year 3| Year 4| Year 5| | Potential Customers| Growth| | | | | | CAGR| +$25K 5 mi. Radius Raleigh| 2%| 50,500| 51,510| 52,540| 53,591| 54,663| 2. 0%| +$25K 5 mi. Radius West Raleigh| 2%| 53,000| 54,060| 55,141| 56,244| 5 7,369| 2. 00%| Total| 2. 00%| 103,500| 105,570| 107,681| 109,835| 112,032| 2. 00%| 4. 2 Target Market Segment Strategy The members of these market segments have luxury money on hand, and lead professional lives  filled with stress at a consistent level. All persons usually need hair styling regardless of income level, and make the effort to find the money available to style their â€Å"look. † 4. 2. 1 Market Needs People love to pamper themselves, especially people who have achieved a modicum level of professional success.Raleigh has become  a bastion for the successful, having consistently been named as one of the best cities in America to live and to do business in since the mid 1990's. This has created a community of wealth, mobility, and growth. Raleigh has successfully implemented a refurbishing plan of â€Å"old† downtown, which now makes Glenwood South, the Warehouse District, and Hillsborough Street one of the most popular destinations in the whole city. 4. 2. 2 Market Trends With the refurbishment of Raleigh's Warehouse District, including Glenwood South, and it's continual development of downtown Raleigh, this area will nly become more popular. 4. 2. 3 Market Growth When  Forbes, Inc. ,  and  Money, Inc. listed Raleigh as the best place to live and do business, and subsequently listed Raleigh in the top five and top ten in the following years, a population boom ensued in the late 1990's. The North Carolina census released in October 2000 reports  that an average of 6,000 persons per day were relocating to the greater Raleigh area. According to this census, the Triangle has one of the highest concentrations of Ph. D. ‘s per square mile in the world. The average income per household is $40,000-$60,000  and climbing.According to the  Raleigh News & Observer  reports of Raleigh City Counsel meetings concerning growth, the continuing refurbishment of downtown Raleigh is a top priority, along with a complete overha ul of the mass transit system. New buses and taxis are funded and are to be implemented during the next two years. A Commuter Rail System run by the Triangle Transit Authority is supposed to be finalized May 1, 2001, and completed by 2007-2008, with rail stations throughout downtown, running up Hillsborough Street going to RDU Airport then connecting to Chapel Hill and Durham; later phases include branch rails to North Raleigh.The refurbishment plan continues, and downtown is now populated with more destinations than ever, with the plan growing even more businesses. The future looks very promising for a thriving downtown with a continual presence of customers. 4. 3 Service Business Analysis We are part of the retail health and beauty industry which has four major types: 1. Salons: Stores with only hair styling services and products. 2. Day Spas: Stores specializing in body health maintenance through a variety of services and products. 3.Day Spa & Salon: Stores combining the serv ices of the two aforementioned. 4. Health & Beauty Products: Stores selling only merchandise products covering the wide range of products available but not inclusive of those sold by salons and spas. 4. 3. 1 Main Competitors The main competitors are Salon 21 with a location in downtown Raleigh, Von Kekel with locations in East Cary and North Raleigh, Soigne' with a location in mid North Raleigh, Emerald City with a location in Northwest Raleigh, Image with a location in far North Raleigh, Millennium 2000 with a location n North Raleigh, Devine with a location in mid North Raleigh, and Warren Scott with a location in far North Raleigh. Also, by nature of their popularity we must also include these spas as main competition: Skin Sense with locations in downtown Cary and far North Raleigh, and Iatria in far North Raleigh. Strengths of the above are services offered: location proximity to major housing developments, and name recognition. The weaknesses of these competitors are gener al lack of promotion, concentration mainly in North Raleigh.With our target location being downtown Raleigh, we will be servicing East, South, West, and Old Raleigh, as well as downtown commuters. There are no salon-spas in West Raleigh, the closest being Von Kekel in East Cary, and the spa only Skin Sense also in Cary. The only downtown competitor, Salon 21, is very small, not very well known, and concentrates most of their business on the salon end. Our market advantage is wide open, and will give us the opportunity to service a large population base that is not currently being well served.When you include our service of energy works, we become the sole provider of all three services of hair works, body works, and energy works  not only in downtown Raleigh, but for the entire greater Raleigh area. 4. 3. 2 Business Participants Industry participants are those whose services include salon and spa offerings. Salon services concern hair styling, while spa services concern body relax ing and rejuvenating offerings such as massage, and nail  and face works. 4. 3. 3 Competition and Buying PatternsCustomers choose spa and salon services based on proximity to their daily travels from home and work, reputation for quality, and good pricing. With our combined services, we expect to compete mainly against other combination spa-salons. Strategy and Implementation Summary 1. Emphasize quality, originality, and dependability of service. We will differentiate ourselves from our competitors by offering a staff of practitioners who are not only certified in their professions, but will be trained in understanding the dynamics of individual energy systems so as to maximize the connection to their client and more easily meet the needs of he client. 2. We will provide a unique atmosphere. From the name to the ambience of our salon, SoulSpace will distinguish itself as a completely trustworthy and soothing setting where customers can enjoy being pampered and escape the stress o f their everyday lives. 3. Build a community relationship-oriented business. We will focus on strengthening the trust of our customer base, and providing not only services, but information that will aid everyone in the progression of obtaining a balanced and healthy lifestyle. We will also work with local artists to provide their work to inspire our customers. 5. Value Proposition Our value proposition is that we will bring a unique mode of relaxation and fulfillment to our community. When people are relaxed, comfortable, and happy, they have the ability to work harder, concentrate better, feel   physically, emotionally, and mentally balanced, and give that happiness back into their homes, workplaces, and community. Simply put, our value proposition is that we help our community become a better place to live and work. 5. 2 Competitive Edge Our competitive edge is  a combination of our unique services, outstanding location, and our interaction with customers.By providing our cust omers a holistic and integrative spa and salon, we build relationships of trust and satisfaction. Our customers will come to depend on our unique services and fulfilling environment. 5. 3 Marketing Strategy Our marketing strategy is the key to our success: 1. Emphasize  our name and unique services through advertising. 2. Focus on the convenience of our location. 3. Build community relationships through unique and quality service, friendly and caring atmosphere, and establishing absolute dependability of our services. 5. 3. 1 Promotion StrategyOur promotional strategy will be two-fold:  first phase promotion will deal with advertising before, during, and six months following our opening; the second phase advertising will deal with all  long-term advertising. 1. FIRST PHASE PROMOTIONS A. Advertising We will utilize local newspaper, local social and health magazines, local radio, local television, mail-outs to all households within the immediate five mile radius, and  mail-out s to all local business within a five-mile radius. B. Internet We will have a comprehensive website. C. AlliancesWe will place our brochures within the offices of our medical referral clients. 2. SECOND PHASE PROMOTIONS A. Advertising We will continue to place ads in the local social  and health magazines year around. Mail-outs will be done again within a five-mile radius one year later after opening, then again only every three to five years. Radio and television ads will be done only when we have sale promotions during the most stressful times of the year for the Christmas season, and graduation; television ads are not certain, we will evaluate their effectiveness before further implementation.B. Internet We will continue to have a comprehensive website. After the  first six months, and certainly after the first year, we will evaluate the viability of having target clients advertise on our site, and conversely, we will evaluate viability of advertising on our target clients we bsites (if applicable). C. Alliances This type of advertising will be implemented once we have grown beyond our break-even point. We will also form advertising alliances with any business with whom we share common business goals.We will also implement mutual perks with our business and restaurant neighbors which will aid in local visibility. Advertising promotions with certain restaurants will also be considered. 5. 3. 2 Marketing Programs Owner Steve Long will be responsible for marketing SoulSpace through the advertising channels. The general manager will be responsible for assisting with the implementation of alliance advertising partnerships. Our advertising budget is $10,000 for the first year. Advertising will begin one week prior to opening. 5. 3. 3 Positioning StatementWe will automatically position ourselves as one of the top spa-salons in the greater Raleigh area. Considering that none of the other competitors will offer the range of services we will, or that their staffs will be trained like ours, and that there are not any spa-salons of our type in our target locations, we will be able to provide services to a portion of Raleigh populace not currently being tapped. 5. 3. 4 Pricing Strategy Our pricing strategy will be similar to that of our competitors. We will not charge over, nor substantially under, standard prices for our services.We will be paying our employees a higher straight percentage of their total individual customer sales than our competitors. This will allow us to hire the best employees, and have a built-in motivational factor that will keep them working hard and happily. 5. 4 Sales Strategy 1. Our umbrella sales strategy is to sell SoulSpace to public consumers as a uniquely desirable destination that will enhance their lives. 2. We will sell SoulSpace through each employee's skill, courtesy, and warmth, creating a trusting impression on all customers, thusly establishing loyalty and return.We will ensure each visit to SoulSpace is a relaxing and memorable experience, so that  customers can always depend on our brand of service when they arrive. 5. 4. 1 Sales Forecast The important elements of the Sales Forecast are shown in the chart and table below. Initial sales forecasts indicate vigorous first year  sales,  almost doubling by the  end of second year, then leveling out somewhat by the  end of third year. These figures are based only on revenue from minimum average estimates from salon stylings and spa massages only, with sales cost reflective of the 60% commission earnings to each stylist/therapist.Sales Forecast| | Year 1| Year 2| Year 3| Sales| | | | Salon Styles Only Revenue| $717,500| $1,400,000| $1,600,000| Spa Massage Only Revenue| $182,500| $350,000| $400,000| Total Sales| $900,000| $1,750,000| $2,000,000| | | | | Direct Cost of Sales| Year 1| Year 2| Year 3| Salon Styles Only Revenue| $429,300| $840,000| $960,000| Spa Massage Only Revenue| $109,500| $210,000| $240,000| Subtotal Direct Cos t of Sales| $538,800| $1,050,000| $1,200,000| 5. 4. 2 Sales Programs 1. Our comprehensive brochure will explain  the holistic nature of our services, and how this benefits the customer. 2.Our website will be comprehensively informative of our services and their benefits. 5. 5 Strategic Alliances We will form alliances with our referral practitioners, local restaurants, offices, and businesses who will be strategically beneficial for generating new customers; we will also form alliances with  local certified massage schools and hair styling schools. 5. 6 Milestones The following table lists important store milestones, with dates, implementation duty, and budgets for each. The milestone schedule emphasizes the timeliness for implementation per the sales and marketing targets listed in detail in the previous topics.Milestones| | | | | | | Milestone| Start Date| End Date| Budget| Manager| Department| Business Plan| 1/15/2001| 2/1/2001| $0| Steve| Owner| Financial Backing| 2/1/2001| 2/5/2001| $200,000| Steve| Owner| Design Contractor Retainer| 2/5/2001| 5/1/2001| $5,000| Steve| Owner| Construction Contractor Retainer| 2/5/2001| 5/1/2001| $20,000| Steve| Owner| Lease Agreement| 1/17/2001| 2/12/2001| $20,000| Steve| Owner| Logo Design| 2/12/2001| 3/1/2001| $1,000| Steve| Owner| Business Cards (Initial)| 2/19/2001| 3/1/2001| $300| Steve| Owner| Brochures| 3/1/2001| 5/1/2001| $3,000| Steve| Owner|Grand Opening| 5/1/2001| 6/1/2001| $0| Steve| Owner| Seven Customers Per Stylist/Therapist| 8/1/2001| 9/1/2001| $0| Steve| Owner| Totals| | | $249,300| | | Management Summary The management philosophy of SoulSpace is based on respect for each of our fellow employees, respect for every customer, and individual responsibility. SoulSpace's success is dependent on the warmth and uniqueness of its atmosphere which is generated by a fun-loving and caring employee. The management team will consist of the owner, general manager, and assistant manager (if deemed necessary).We will hire only those whom demonstrate  the qualities necessary for working in a nurturing environment, and the willingness to move forward in study of energetic principals if not already so trained. We will be hiring the ultimate â€Å"people persons. † 6. 1 Organizational Structure Our initial team consists of 14 employees, inclusive of a general manager and an assistant manager,  both of whom will be active stylists/therapists. Employees will be in from the two store divisions of spa and salon. On the salon side there will be 10 stylists and one or two receptionists.There will be room for expansion to 12-15 stylists and three receptionists. The spa side will consist of three massage therapists, one energy therapist, one nail specialist, and one receptionist. There will be room for expansion to five to seven massage therapists, and  two to three energy therapists. 6. 2 Management Team Steven J. Long, co-owner, president:  Founded SoulSpace in 2001. He has a degree in psyc hology from NC State, a  concentration in industrial/organizational with emphasis on communication.He has been a Reiki Master Usui Shiki Ryoho since 1996 and operates part-time healing practice from home. He has  eight years management experience, six in retail, two in electronic component rep field for distribution. Mr. Long spent  three years in the modeling industry, one as model and two as the manager of an agency in Raleigh in 1991. Deborah L. Long, co-owner:  Debby will not be directly involved in daily operations, but will assist Steve in general organizational planning and vision implementation. Debby currently is the number one co-location sales manager for SpectraSite, Inc. here she has worked for two years. She spent several years as an executive assistant at TDK of America's Distribution Sales Center in Chicago, and at Cotton Incorporated. She is a level two Usui Shiki Ryoho. Linda Hill-Chinn, co-owner, CFO:  Linda is retired after having spent 15 years as seni or national staffing specialist for the American Hospital Association in Chicago, as well as serving on their board of directors for several national projects. She also spent several years managing Planned Parenthood of Chicago.Linda holds a Masters of sociology  from Brown University. Jennifer McElravey, general manager: For the past nine years, Jennifer has been one of the top stylist for Mitchell's Hair Design of Raleigh and is currently a level five stylist, Salon Designer of the Year '94-97, and received  extra training at Vidal Sassoon of London, Highest Salon Retail Sales four different years. Jennifer is also a level two Usui Shiki Ryoho. 6. 3 Management Team Gaps We believe the experience of our team covers the needs to make the business plan for SoulSpace a very successful reality.The assistant manager is not named here because that position will be named from the pool of stylists/therapists that will be hired previous to our opening. 6. 4 Personnel Plan The Personnel Plan below reflects our projected need at opening, and carries through the second year expansions. Personnel Plan| | Year 1| Year 2| Year 3| Steve Long, Owner, President| $65,040| $65,040| $65,040| General Manager| $60,000| $60,000| $60,000| %100 Commissioned Employees| $150| $156| $156| Receptionist| $15,360| $15,360| $15,360| Receptionist| $15,360| $30,620| $30,620| Total People| 17| 18| 18| | | | | Total Payroll| $155,910| $171,176| $171,176|Financial Plan The premier element in our financial plan is initiating, maintaining, and improving the factors that create, stabilize, and increase our cash flow: 1. We must create visibility so as to create customer flow. 2. We must maintain a dependable,  happy employee force so as to minimize turnover. 3. Create a brisk turnaround on our retail and art products, always maintaining viable stock levels. 7. 1 Important Assumptions The key underlying assumptions of our financial plan shown in the following general assumptions table are: 1. W e assume access to equity capital and financing to support our financial plan. 2.We assume our financial progress based on realistic sales to minimum sales against highest expenses. 3. We assume there will not be an economic crash that would greatly hinder our target market's access to their personal luxury funds. General Assumptions| | Year 1| Year 2| Year 3| Plan Month| 1| 2| 3| Current Interest Rate| 10. 00%| 10. 00%| 10. 00%| Long-term Interest Rate| 10. 00%| 10. 00%| 10. 00%| Tax Rate| 2. 50%| 0. 00%| 2. 50%| Other| 0| 0| 0| 7. 2 Key Financial Indicators Our most important Key Financial Indicator is when each stylist averages seven customers per day and each therapist averages three customers per day. . 3 Break-even Analysis For our Break-even Analysis we assume estimated monthly operational costs which include payroll, rent, utilities, and other running costs (not including employee draw fund considerations). Payroll alone is only estimated to about 1/2 of those costs. The ana lysis shows what we need to generate in  revenues per month to break even. This total is 13% less than estimated monthly store gross. This estimation does not include revenue from any other store sources, and is based on a salon customer average of $36 and spa customer average of $60. Our average per customer revenue is estimated at $39.Considering our minimal assumptions show a monthly total customer average of 1,922, we therefore believe our break-even figures can be readily maintained. Break-even Analysis| | | | | Monthly Revenue Break-even| $73,567| | | Assumptions:| | Average Percent Variable Cost| 60%| Estimated Monthly Fixed Cost| $29,525| 7. 4 Projected Profit and Loss There are two important assumptions with our Projected Profit and Loss statement: 1. We  expect to have to pay out from the Draw Fund occasionally. 2. Our revenue is based on minimum estimated averages against highest expense expectations. Pro Forma Profit and Loss| Year 1| Year 2| Year 3| Sales| $900,000| $1,750,000| $2,000,000| Direct Cost of Sales| $538,800| $1,050,000| $1,200,000| Other| $0| $0| $0| Total Cost of Sales| $538,800| $1,050,000| $1,200,000| | | | | Gross Margin| $361,200| $700,000| $800,000| Gross Margin %| 40. 13%| 40. 00%| 40. 00%| | | | | | | | | Expenses| | | | Payroll| $155,910| $171,176| $171,176| Sales and Marketing and Other Expenses| $34,000| $39,000| $41,000| Depreciation| $0| $0| $0| Rent| $120,000| $120,000| $120,000| Leased Equipment| $0| $0| $0| Utilities| $9,000| $9,000| $9,000| Insurance| $12,000| $12,000| $12,000|Payroll Taxes| $23,387| $25,676| $25,676| Other| $0| $0| $0| | | | | Total Operating Expenses| $354,297| $376,852| $378,852| | | | | Profit Before Interest and Taxes| $6,904| $323,148| $421,148| EBITDA| $6,904| $323,148| $421,148| Interest Expense| $0| $0| $0| Taxes Incurred| ($2,907)| $0| $10,529| | | | | Net Profit| $9,810| $323,148| $410,619| Net Profit/Sales| 1. 09%| 18. 47%| 20. 53%| 7. 5 Projected Cash Flow Considering our business is a luxury, retail-oriented business with customers who will pay primarily with credit cards, our cash flow is not dependant on the issuance of invoices and the vagaries of Accounts Payable.We will need a minimum of financing to cover the cash flows of the first year of operations. After that, the cash flow becomes continual. Pro Forma Cash Flow| | Year 1| Year 2| Year 3| Cash Received| | | | | | | | Cash from Operations| | | | Cash Sales| $900,000| $1,750,000| $2,000,000| Subtotal Cash from Operations| $900,000| $1,750,000| $2,000,000| | | | | Additional Cash Received| | | | Sales Tax, VAT, HST/GST Received| $0| $0| $0| New Current Borrowing| $0| $0| $0| New Other Liabilities (interest-free)| $0| $0| $0| New Long-term Liabilities| $0| $0| $0| Sales of Other Current Assets| $0| $0| $0| Sales of Long-term Assets| $0| $0| $0|New Investment Received| $0| $0| $0| Subtotal Cash Received| $900,000| $1,750,000| $2,000,000| | | | | Expenditures| Year 1| Year 2| Year 3| | | | | Expenditures fr om Operations| | | | Cash Spending| $155,910| $171,176| $171,176| Bill Payments| $719,414| $1,263,200| $1,423,005| Subtotal Spent on Operations| $875,324| $1,434,376| $1,594,181| | | | | Additional Cash Spent| | | | Sales Tax, VAT, HST/GST Paid Out| $0| $0| $0| Principal Repayment of Current Borrowing| $0| $0| $0| Other Liabilities Principal Repayment| $0| $0| $0| Long-term Liabilities Principal Repayment| $0| $0| $0| Purchase Other Current Assets| $0| $0| $0|Purchase Long-term Assets| $0| $0| $0| Dividends| $0| $0| $0| Subtotal Cash Spent| $875,324| $1,434,376| $1,594,181| | | | | Net Cash Flow| $24,676| $315,624| $405,819| Cash Balance| $84,676| $400,299| $806,118| 7. 6 Projected Balance Sheet Our Projected Balance Sheet shows we will not have any difficulty meeting our debt obligations as long as our revenue projections are met. Pro Forma Balance Sheet| | Year 1| Year 2| Year 3| Assets| | | | | | | | Current Assets| | | | Cash| $84,676| $400,299| $806,118| Inventory| $54,450| $10 6,111| $121,269| Other Current Assets| $0| $0| $0| Total Current Assets| $139,126| $506,410| $927,387| | | | |Long-term Assets| | | | Long-term Assets| $0| $0| $0| Accumulated Depreciation| $0| $0| $0| Total Long-term Assets| $0| $0| $0| Total Assets| $139,126| $506,410| $927,387| | | | | Liabilities and Capital| Year 1| Year 2| Year 3| | | | | Current Liabilities| | | | Accounts Payable| $63,316| $107,452| $117,811| Current Borrowing| $0| $0| $0| Other Current Liabilities| $0| $0| $0| Subtotal Current Liabilities| $63,316| $107,452| $117,811| | | | | Long-term Liabilities| $0| $0| $0| Total Liabilities| $63,316| $107,452| $117,811| | | | | Paid-in Capital| $160,000| $160,000| $160,000| Retained Earnings| ($94,000)| ($84,190)| $238,958|Earnings| $9,810| $323,148| $410,619| Total Capital| $75,810| $398,958| $809,577| Total Liabilities and Capital| $139,126| $506,410| $927,387| | | | | Net Worth| $75,810| $398,958| $809,577| 7. 7 Business Ratios The follow table contains important bus iness ratios for the  physical fitness facilities  industry, as determined by the Standard Industry Classification (SIC) code, 7991. Ratio Analysis| | Year 1| Year 2| Year 3| Industry Profile| Sales Growth| 0. 00%| 94. 44%| 14. 29%| 15. 90%| | | | | | Percent of Total Assets| | | | | Inventory| 39. 14%| 20. 95%| 13. 08%| 3. 60%| Other Current Assets| 0. 00%| 0. 00%| 0. 00%| 31. 10%|Total Current Assets| 100. 00%| 100. 00%| 100. 00%| 39. 00%| Long-term Assets| 0. 00%| 0. 00%| 0. 00%| 61. 00%| Total Assets| 100. 00%| 100. 00%| 100. 00%| 100. 00%| | | | | | Current Liabilities| 45. 51%| 21. 22%| 12. 70%| 34. 80%| Long-term Liabilities| 0. 00%| 0. 00%| 0. 00%| 27. 60%| Total Liabilities| 45. 51%| 21. 22%| 12. 70%| 62. 40%| Net Worth| 54. 49%| 78. 78%| 87. 30%| 37. 60%| | | | | | Percent of Sales| | | | | Sales| 100. 00%| 100. 00%| 100. 00%| 100. 00%| Gross Margin| 40. 13%| 40. 00%| 40. 00%| 0. 00%| Selling, General ;amp; Administrative Expenses| 39. 37%| 21. 53%| 18. 94%| 73. 20%| A dvertising Expenses| 1. 11%| 0. 86%| 0. 5%| 2. 40%| Profit Before Interest and Taxes| 0. 77%| 18. 47%| 21. 06%| 2. 70%| | | | | | Main Ratios| | | | | Current| 2. 20| 4. 71| 7. 87| 1. 10| Quick| 1. 34| 3. 73| 6. 84| 0. 73| Total Debt to Total Assets| 45. 51%| 21. 22%| 12. 70%| 62. 40%| Pre-tax Return on Net Worth| 9. 11%| 81. 00%| 52. 02%| 3. 00%| Pre-tax Return on Assets| 4. 96%| 63. 81%| 45. 41%| 7. 90%| | | | | | Additional Ratios| Year 1| Year 2| Year 3| | Net Profit Margin| 1. 09%| 18. 47%| 20. 53%| n. a| Return on Equity| 12. 94%| 81. 00%| 50. 72%| n. a| | | | | | Activity Ratios| | | | | Inventory Turnover| 10. 91| 13. 08| 10. 56| n. a| Accounts Payable Turnover| 12. 6| 12. 17| 12. 17| n. a| Payment Days| 27| 24| 29| n. a| Total Asset Turnover| 6. 47| 3. 46| 2. 16| n. a| | | | | | Debt Ratios| | | | | Debt to Net Worth| 0. 84| 0. 27| 0. 15| n. a| Current Liab. to Liab. | 1. 00| 1. 00| 1. 00| n. a| | | | | | Liquidity Ratios| | | | | Net Working Capital| $75,810| $398,958| $80 9,577| n. a| Interest Coverage| 0. 00| 0. 00| 0. 00| n. a| | | | | | Additional Ratios| | | | | Assets to Sales| 0. 15| 0. 29| 0. 46| n. a| Current Debt/Total Assets| 46%| 21%| 13%| n. a| Acid Test| 1. 34| 3. 73| 6. 84| n. a| Sales/Net Worth| 11. 87| 4. 39| 2. 47| n. a| Dividend Payout| 0. 00| 0. 00| 0. 00| n. a|

Siemens Bribery Case

Ian Collins Survey of Global Business Professor Portillo BSAD 113W 18 February 2013 Assignment #3: Siemens Bribery Scandal Before 1999 the use of bribery in Germany was not illegal and could be deducted as a business expense in a company’s taxes. This allowed companies like Siemens to gain the upper hand and have an unfair advantage over their competition in acquiring business deals around the world. Then when the law changed, Siemens still utilized bribery, and employed bribery tactics in other countries where it was also illegal.In this case study I’m going to analyze the rationale and high levels of corruption that transpired in the Siemens bribery scandal and utilize the Organization for Economic Cooperation and Development’s (OECD) Guidelines for Multinational Enterprises to illustrate the negative impact of bribery. Siemens use of bribery initially could have been justified by the fact that German laws allowed it and was not illegal until 1999; the issue wa s that Siemens continued to use bribery even after the law had changed.Corruption was deeply embedded in the business culture. Siemens transferred money into Swiss bank accounts to avoid detection and then hired contractors to set up the bribes. These actions were standard operating procedures for corporate executives who viewed bribery as a business strategy. Senior executives even made certain individuals that were directly in charge of the bribery funds sign compliance forms stating they had not engaged in that kind of activity, bribes were referred to as ‘useful’ money.The punishment Siemens faced involved paying fines totaling $2. 6 billion. In the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises, which sets voluntary principles and standards for business conduct, clearly outlines the negative aspects that comes from bribery. â€Å"Bribery and corruption are damaging to democratic institutions and the governance of corporations. They discourage investment and distort international competitive conditions.In particular, the diversion of funds through corrupt practices undermines attempts by citizens to achieve higher levels of economic, social and environmental welfare, and it impedes efforts to reduce poverty. Enterprises have an important role to play in combating these practices. † In defense of the Siemens employees, many of them just believed that was how business was done and had the best interests of the company at heart. It was about keeping the business alive and not jeopardizing thousands of jobs,† if this indicates the intention of the employees then the act is more justifiable than just doing the action out of greed. Siemens is a company that allowed greed to cloud their judgement to use bribery to gain the upper hand, as well as not evolving with the changing laws. You can only speculate as to the real thought process behind the choice to engage in bribery, whether i t was done knowingly to gain an unfair advantage or sincerely to protect the jobs of many employees, the action was still committed.A company needs to be aware of the laws, regulations and what is considered acceptable business conduct of the other countries it chooses to do business with and not violate them, including the use of bribery. ——————————————– [ 1 ]. http://lilymayunjue. blogspot. com/2012/06/summary-of-siemens-bribery. html [ 2 ]. http://www. nytimes. com/2008/12/16/business/worldbusiness/16siemens. html? _r=0 [ 3 ]. http://www. oecd. org/daf/inv/mne/48004323. pdf [ 4 ]. Article: Siemens Bribery Scandal

Essential Elements for Formation of Contract in UK and Invitation to Treat Free Essay Example, 5000 words

This essay explores the essential elements for the formation of the contract in the UK and invitation to treat . Intention to create a legal relation: Schwartz and Scott concluded that the foremost need of establishing a contract is the will to create a legal relationship between the parties to the contract. The parties to the contract should abide the legal aspects associated with the process of developing a contract. For instance, the contract should be written and must reflect a clear offer and acceptance of the offer. Lawful Consideration: Consideration in a contract refers to the factor which obliges the parties to fulfill the contract. According to Schlanger, consideration can be defined as the value which is received by the parties to the contract on the fulfillment of the contract. The consideration in case of James and Jenny has focused on the services and benefits to be gained on the completion of the contract. The consideration for James will be final amount to be receiv ed from Jenny, while Jenny receives the press in return for her money. A capacity of the parties: According to the Contract Act 1999, the parties to the contract must be able to participate in the legal affairs and should be permitted by the policies of the nation to enter a contract. We will write a custom essay sample on Essential Elements for Formation of Contract in UK and Invitation to Treat or any topic specifically for you Only $17.96 $11.86/page The invitation made to Ann by James for selling the office computer can be referred in this relation. Although Ann accepted the offer she also revoked and thus Ann was not necessarily bound by the offer. The invitation to treat only signifies the offer that is being made to the intended group and can be aimed at an individual or be an open offer to be accepted by anyone. Legal contracts are based on various terms and conditions which form the basic layout of the contract and also include the legal obligations of the parties to the contract. The diversities in these terms and conditions often results in disputes created or incompleteness of the contract.