Innovation and Sustainable Business Development Business Models

Question: Discuss about theInnovation and Sustainable Business Development for Business Models. Answer: Introduction The three articles on conceptualizing business models as activity based, arrived at significantly different models because of difference in business environments and business activities as modelled by the different organisations. There is no one-fits-all business model that can be universally adopted by all organisations for execution as different companies faces different situations even in the same business environment. For example, one company could be having a superior technology that enables it to produce at lower cost than its peers it could also be that, a different company uses a supplier with very strong network of supply chain but their services are expensive not that all organisations can afford to partner with them and still remain in business. It is therefore possible to come up with significantly different type of business models even when all of them are activity based. (Itami, Nishino, 2010) The concept of business model can therefore be defined as a set of interdependent activities that aims to achieving a common objective of having a product or service delivered to the market for consumption. The business model contains three important players that are; the producer or the focal organisation, the supplier and the consumer each playing different activities in the system. When one is conceptualizing business model as a system there are elements that needs to be considered. One such element is the objective of the focal organization. The objective in this case is what the focal organisation is offering. What type of product or services is it selling or offering? This would then assist the entrepreneur of the focal organisation or its manager to come up with who are going to be the suppliers and the consumers. The activities which these other players will carry out are all guided by the nature of the product or the service on offer. Therefore to come up with business model as a system the key determinant is the focal company objectives then the rest would depend on it. Using business model as an activity based system to solve static problem one needs to consider a case whereby one company is experiencing business challenges in meeting a certain objective. This can be inability to deliver products to the clients because of lack of adequate infrastructure to carry out this function effectively. This company can simply contract another company which can deliver these products on time to the market without delay instead of investing heavily to be able to internally carry out the function. The products can be highly perishable products such as farm flowers. Therefore this static problem is solved by incorporating another firm in to the business system and solves the static of supply. To solve dynamic problem one needs to consider a case where the focal organisation contracts a different firm to produce certain part of their product and still retain the production of the same parts in-house. The focal firm can therefore be able to learn from both in-hous e production and from the contracted outside firm. Any change in consumer behaviour will be easily noted by the focal firm by comparing its findings in its in-house production and external production and make appropriate changes in accordance to the dynamism of the problem. (Itami, Nishino, 2010) To understand how business partner using business model as an activity based we take an example of a focal firm which needs to focus on production and leave another company to focus on distribution and marketing of the product. The two firms will be in one system whereby each of them will be playing distinct activities and the consumers will complete the system by buying the products, thus forming a business model where each player has distinct roles or activities but in one system with one objective of producing and delivering the products to the consumers for purchase. Understanding innovation process using business model as an activity based system will require a consideration of two companies one a research and development company and another an established mechanical engineering company. The research and development company may come up with an innovative idea of friction reducing technology. This technology can significantly reduce the friction of the mechanical equipments being manufactured by the established mechanical engineering company giving them an edge in the market. The established company can contract the research and development company to have this important technology incorporated in its machines and gain advantage in the market. Thus the two companies are now in one business model but each playing distinct activities with one objective of delivering a high efficiency machines to the customers. (Itami, Nishino, 2010) (Kodama, n.d.) Toyota is a car manufacturer based in Japan. To understand the business model of this company we shall consider the article by two professors namely Hiroyuki Itami and Kazumi Nishino in which they titled Killing Two Birds with One Stone. The two professors argue that a business model ought to have two elements, the business system and the profit model. Considering Toyota business model the company procures production of certain car parts from a few selected companies but still produces the same parts internally. What this does is that Toyota is able to learn the new developments as far as production of the parts is concerned. It is also able to draw comparisons with its internal production and make appropriate changes according to the findings the company draws from the two sets of production. This double production is what constitutes the element of business system which make Toyota come up with the sustainable profit model. From the lessons it draws using business system Toyota wil l always respond according to the consumer behaviour and that is why probably, it has been able to coin out this phrase The car in front of you is always a Toyota (Itami, Nishino, 2010) (Cumberlidge, 2007) The article which best explains the concept of business model as an activity based system according to me is Killing Two Birds with One Stone by Professor Hiroyuki Itami and Professor Kazumi Nishino. The reason for this finding is that the article points out that a good business model needs to have two elements, the business system and the profit model where the business system is the main concept of the business not the profit model. I find this to be the best model because as an entrepreneur you need to constantly learn by participating in all aspects of your business not simply procuring them out and forgetting about the new developments which may happen in the market concerning the procured service. In conclusion, future business models should lay emphasis on the business system and not the profit model. There is a temptation to focus more on the profit model because the company is getting monetary gains from this model but in essence it is the business system that makes the profit model breath life. The entrepreneur is able to learn and make adjustments that will make clients continue holding the products of the firm in high regard and thus purchase. If the entrepreneur doesnt study the market and make appropriate response the profit model will become obsolete with time and there will no or less sales as per the profit model. (Quaddus, Woodside, 2015) (Zott, Amit, Massa, n.d.) References Cumberlidge, M. (2007). Business Process Management with JBoss jBPM. Birmingham: Packt Publishing. Itami, H., Nishino, K. (2010). Killing Two Birds with One Stone. Long Range Planning, 43(2- 3), 364-369. https://dx.doi.org/10.1016/j.lrp.2009.07.007 Kodama, M. (2007). Knowledge innovation. Cheltenham: Edward Elgar. Kodama, M. (2010). Boundary management. Heidelberg: Springer. Kodama, M. Collaborative innovation. Quaddus, M., Woodside, A. (2015). Sustaining competitive advantage via business Intelligence, knowledge, management, and system dynamics. Bingley: Emerald. Zott, C., Amit, R., Massa, L. The Business Model: Recent Developments and Future Research. SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.1674384

Star Appliances Essays - American Brands, Kenmore, Maytag

Star Appliances Mission Statement Company Objectives Company Overview 1. Historical Outline 2. Products and Services 3. Financial Statements SWOT Analysis ? An analysis of company's strengths ? An analysis of company's weaknesses ? An analysis of company's opportunities ? An analysis of company's threats Business Strategy Marketing Mix ? Product ? Pricing ? Place ? Promotion Analysis of Major Competitors in the Field ? Kenmore ? Whirlpool ? Kirby ? Maytag ? GE International Expansion 1. Hungary ? External Environment ? Industry Analysis ? Recommended Entry Mode 2. Japan ? External Environment ? Industry Analysis ? Expansion Strategy for the Future Five Years 4. Canada ? External Environment ? Expansion Strategy for the Future Five Years 5. Mexico ? External Environment ? Industry Analysis ? Expansion Strategy for the Future Five Years Growth Forecasts for Years 2000, 2001, 2002, 2003, 2004 Implementation The View Ahead Star Appliances Inc. Mission Statement Quality For over thirty years, Star Appliances Inc. has been helping people to manage their homes. Today, Star Appliances Inc. is one of the major competitors in the household industry and one of the most selling brand in America. Star Appliances Inc. Mission is to: ? Achieve technology excellence in current and future generations of products, processes, and services. ? Develop innovations by creating entirely new business opportunities. ? Help solve critical technical challenges. ? Attract and develop new technical leaders. ? Ensure leadership technology in all departments of Star Appliances. ? Drive corporate initiatives across Star Appliances. ? Expand its market by exploring a global economy Satisfaction All Star Appliances products contain proper warranty information. Each appliance comes with a pledge of Satisfaction Guaranteed or your money back. Star Appliances offers maintenance agreements and annual check-ups to keep your appliances running right. And should anything ever go wrong with your Star appliance (and we hope it never does), we offer a nationwide network of service technicians to make sure it gets fixed fast and fixed right. Value When you compare feature-for-feature, you'll find that Star Appliances offers more for the money than any other brand. Maybe that's why s leading consumer magazine recently ranked Star's washers, dryers, and vacuums NUMBER ONE in their respective categories. Have questions or need more information about new Star products? Call 1-888-1ST-STAR or speak to a Customer Service Representative For service information or to schedule a service, call 1-800-4MY-STAR. Star Appliances Inc. Company Objectives Integrity Integrity is an uncompromising characteristic for all Star Appliances employees. It is an implicit factor in customer relationships and the cornerstone of all Star Appliances business activities. Along with the company's reputation for innovation, growth and success, we value integrity among the essential and critical elements in our employees. It is the baseline by which we measure everything else and from which we never compromise. Creativity Star's continued success is the result of its employees' creativity. Every day, teams of Star Appliances people push the frontiers, developing new products and services to serve their customers. Focusing on highly specialized financial services segments, our people develop a unique understanding of customer requirements as they apply their collective talents to solving industry challenges. Intellect At Star, we've never separated ideas from actions?both are essential elements of the competitive equation. Developing the most advanced financial product or innovative service is meaningless if you don't move quickly to get it to market and delivered to customers. The people from Star understand the importance of both ideas and action to maintain the company's position as one of the leaders in the market. Quality as a corporate objective: Company-wide Quality, as a corporate objective, means attaining a level of overall performance and attitude that makes Star Appliances the natural choice of customers and earns the respect of all those affected by the Company's activities. Company-wide Quality, as an individual objective, is achieved by employees who aspire to be better than the best. Star Appliances is committed to providing flexibility in the design, calibration, repair, and testing services to customers while maintaining a consistent, optimum level of quality. The services we offer include standard service packages as well as customized service capabilities to accommodate unique customer requirements. Our business-wide commitment to meet the needs of customers is the foundation for the Quality System. Star Appliances is dedicated to maintaining close relationships with our suppliers. The overall objective is to make certain that we exceed our customer's expectations. Company Profile q Historical Outline Star Appliances Inc. designs, manufactures, sells and supports a line of household appliances. The company was started in 1970 and has grown steadily to its current size. Star Appliances has its head

Simple Décrire Verb Conjugations in French

Simple Dà ©crire Verb Conjugations in French In French, to say to describe, you must use the verb  dà ©crire. Admittedly, conjugating this verb to mean described or will describe is not the easiest thing to do. However, a quick lesson and some dedicated practice will help you memorize this tricky verb. Conjugating the French Verb  Dà ©crire Dà ©crire  is an  irregular verb, so it does not follow one of the common verb conjugation patterns found in French. Yet, all  French verbs ending in  -crire  are conjugated this way. You might consider studying a few at the same time to make learning each just a little easier. Conjugations transform the verb into the present, future, or past tense so the sentence makes sense. This is done by identifying the verb stem - in this case,  Ã¢â‚¬â€¹dà ©cri- - then adding the appropriate infinitive ending for the subject pronoun. For instance, I describe is je dà ©cris and we will describe is nous dà ©crirons. Subject Present Future Imperfect je dà ©cris dà ©crirai dà ©crivais tu dà ©cris dà ©criras dà ©crivais il dà ©cris dà ©crira dà ©crivait nous dà ©crivons dà ©crirons dà ©crivions vous dà ©crivez dà ©crirez dà ©criviez ils dà ©crivent dà ©criront dà ©crivaient The Present Participle of  Dà ©crire When you add -ant  to the verb stem of  dà ©crire, you form the  present participle  dà ©crivant. It is a verb, of course, yet youll also find it used as an adjective, gerund, or noun at times. The Past Participle and Passà © Composà © The  past participle  of  dà ©crire  is  dà ©crit.  Its used in the construction of the  passà © composà ©Ã‚  for the past tense of described. To use it, you must also conjugate the  auxiliary verb  avoir. The passà © composà © comes together quickly once you know these rules. As an example, I described is jai dà ©crit and we described is nous avons dà ©crit. More Simple Dà ©crire  Conjugations Among the other simple verb conjugations of  dà ©crire  that you should know are the subjunctive and conditional. Each implies some degree of uncertainty or dependency in the act of deciding. In literature, youll come across either the passà © simple or imperfect subjunctive forms. While you may not use them yourself, recognizing them as a form of  dà ©crire  will help with comprehension. Subject Subjunctive Conditional Passà © Simple Imperfect Subjunctive je dà ©crive dà ©crirais dà ©crivis dà ©crivisse tu dà ©crives dà ©crirais dà ©crivis dà ©crivisses il dà ©crive dà ©crirait dà ©crivit dà ©crivà ®t nous dà ©crivions dà ©cririons dà ©crivà ®mes dà ©crivissions vous dà ©criviez dà ©cririez dà ©crivà ®tes dà ©crivissiez ils dà ©crivent dà ©criraient dà ©crivirent dà ©crivissent In short, assertive commands and requests, the imperative verb form is used. When using this, keep the sentence short and skip the subject pronoun: dà ©cris rather than tu dà ©cris. Imperative (tu) dà ©cris (nous) dà ©crivons (vous) dà ©crivez

Business and culture Essay Example | Topics and Well Written Essays - 1000 words

Business and culture - Essay Example 3) My group got down to business straight away and just started discussing what the task was. Many of our personalities are geared towards getting things done in a timely manner, so it was good that we were all able to think along the same lines. Of course, this method has its downsides, but I think that we were all able to adapt to the situation at hand and work together towards completing our project. To do this, we set out a list of priorities and deadlines that we would all work towards so that everything was not left until the last minute. I think that this was good because it relived the stress on all of us. We decided that it would be better not to appoint one leader because if that person did not perform adequately, then it would affect the whole group. We came to the conclusion that it would be better if we shared leadership because then we would all be responsible for the success or failure of the group. I did not like this idea at the start because I felt that our group would be like a ship without a rudder, but I was pleasantly surprised that we all contributed equally to the project. As was mentioned above, we shared out responsibility among all the group’s members. To get work done faster, we assigned ourselves different roles that were based on our strengths. There were very few arguments over who should have done what because we all knew our role in the group and did not overstep our boundaries. Communication was surprisingly a strong point for us. At the beginning of the project, we all agreed to swap phone numbers so that we would all be reachable at any time. Also, we used methods such as Facebook and regular email to stay in contact. This was really good because we could remind each other about when we had to complete a task by. Of course, we also communicated face-to-face during class time and also during our breaks during the day. As was mentioned above, we were always reminding each other about what we had to do and when we had

Alternative Energy Resources Research Paper Example | Topics and Well Written Essays - 2000 words

Alternative Energy Resources - Research Paper Example The temperature level in the earth has critical role hence it cannot be produced in all the localities. Scientists have estimated that the amount of geothermal power present in the crust of earth is sufficient to fulfill the energy requirements of the world for upcoming many centuries. It is sustainable, cost effective, and reliable; and has the tendency to facilitate all mainstream energy units (Jorgensen 51). According to Ting (2011, p.230), the drilling interface for the production of this kind of energy is very expensive. The machinery and equipment required for the digging purpose cannot be afforded easily. The selection of appropriate place needs accuracy as drilling costs are too high. Governments’ intervention for this energy producing resource is essential as private bodies cannot solely bear its costs. Some countries like United States, Philippines, Ice land and Japan have taken serious measures to produce energy from this form. China is taking colossal steps in this regard too. The expense of machinery eventually effects on the consumers too thus people have to pay lot more than usual rates. Chevron Corporation has immensely invested in the geothermal production units. It is the largest private sector energy producing unit and has tremendously facilitated numerous consumers throughout the globe. The focus of the corporation remains to fulfill energy requirements of residents at all levels. Currently in United States more than 77 geothermal power electricity units are operational; producing approximately 3086 MW energy. The Geysers, California is the region where America’s largest geothermal production unit is installed. Philippines government and private sector has taken incredible... This report stresses that geothermal power is one of the safest forms of energy production expeditions. The energy requirements of all the countries can be easily fulfilled if geothermal energy units are incorporated. World would eventually progress rapidly and swiftly when energy shortfalls are eradicated. The machinery, equipment and team required for the plantation purpose of geothermal powers requires accuracy and precision. The costs of geothermal energy production are relatively higher than other forms of the energy producing models but it ensures long lasting success. The major constituent making geothermal prominent is the deduction methodology of this energy source. Since earth’s crust is the resource and also stores energy too, therefore there is no element of reserving it somewhere else. The independence by federal government of U.S to its respective states has brought significant outcomes. This essay makes a conclusion that moreover countries have to bear costs of this energy production unit once; it can fulfill energy requirements for upcoming numerous years. Researchers have elevated geothermal as the best method of energy production and have also discussed its economic factors too. In the inauguration of any energy producing reservoir costs have to be met. The amount is eventually spent annually or semiannually on the maintenance and up gradation of energy production models but geothermal guarantees long-lasting sustainability, reliability and cost effectiveness.

Art Is Lie That Brings Truth Nearer

Art Is Lie That Brings Truth Nearer I decided to evaluate the quotation by Pablo Picasso: Art is a lie that brings us nearer to the truth because the claim contains several issues that, depending on the definition, may lead to further difficulties in interpretation. What do we mean by truth?; What is a lie; What do we mean by arts?; Who do we consider when saying us? A piece of art, as a separate subject, is hermetically understood by every individual. It inspires us all, both creators and receivers of the art leading to specific, personal, conclusions. Therefore, not only the main assumption but also the main outcome of the arts is relativism; that is why we cannot state any absolute values in it. As Pablo Picasso once said: You will not understand arts as long as you wont understand that in arts 1+1 may give any result but 2  [1]  . This underlines, I believe, that art is never able to give an absolute answer, therefore is a lie in absolute terms. Hence, art outlines only the artists personal impression, his tru th, and cannot be a measure of any unambiguous distinction between the absolute and impression itself. Since it is the quotation of Pablo Picasso that is evaluated in this essay, it can be explained in relation to cubist theory of truth. The theory claims the total truth is a sum of all perspectives. So the more personal truths, in relativistic terms, or various lies (not hole truths), in absolute terms, are added, the closer one gets to knowing the real truth. That is how the art is a lie that helps us realise the truth. I will prove my thesis by analysing what kind of truth do paintings of Johannes Vermeer, a realist, Pierre Auguste Renoir, an impressionist, Edward Munch, an expressionist, and Rij Rousseau, a cubist, tell me separately and altogether about women. These artists, and specific movements they represent, were chosen because of the underlying contrast in both perceiving the truth and expressing it. They represent varied approaches which will allow to present flaws in ea ch view and draw moderate conclusion, which falls into the thesis of the investigation. The painting The Milkmaid , by Vermeer, shows a woman standing in a kitchen, preparing a meal. Her face is calm and it can be judged from her clothes and the content of the room that she lives in relative luxury. The painting presents somehow the reality of the 17th century social situation in Netherlands which gives me a social and historical truth concerning woman. Additionally, Vermeers truth about women is that they are the guardians of the households. His view falls into correspondence theory of truth, which claims that something is true if it corresponds to a fact. Despite recent XXth centurys social changes concerning womans position, they have always played a major role in taking care of home. The movement itself is an example of realism that comprises in the mimetic theory of art. The concept of mimesis assumes that the purpose of the art is to copy reality. Therefore the problem arises when evaluating realism- is it false because it deals with imitation, or it is true throu gh paradox of fiction- that the model presents some regularities of human behavior? I believe that by taking from the character her personal identity in exchange for creating a generalized model, Vermeer in fact hinders the personal truth about this woman. He effectively presents the social order and historical truth, however generalization is always concerned only with average, not with all possibilities. The painting Woman with a dog of Renoir presents a woman with a dog sitting in the grass. The blurry curves are used in order to show movement of the grass. By looking at the bloom and the reddish shade on a girl it can be judged it is a late afternoon. Renoirs truth in this painting applies only to womans look in a specific place at a specific time. Additionally, the painting says something personal about her- that she probably enjoyed spending her time close to the nature, since her face expresses joy, and that she probably enjoyed watching sunsets. The painting is an ideal example of impressionism. As Childe Hassam  [4]  once noticed: The true impressionism is realism that so many people do not observe. The crucial difference, however, between these two concepts is that impressionism tries to prove that truth is not a generalisation, like in realism. Instead, it uncovers the truth about certain objects in relation to very specific time and place. Therefore, impressionism also falls into correspondence theory of truth since Renoirs painting corresponds to a fact- girls look during a sunset. However, since impressionists tried to immortalise the very glance we must ask ourselves how good truth is that? Following Monets thoughts I assume that the truth about everything would be hindered in a series of glances. Thus, showing just one of the uncountable in their number glances gives us only an insignificantly small part of the truth about women in general and the girl in particular. The painting Madonna by Edvard Munch presents a woman with sunken orbits and slender posture which makes her look like a demon. The foetus in the left corner symbolises fertility and therefore depicts woman as a source of life. Her face expresses experiencing ecstasy and by linking this image with the title of a piece, Madonna, which is the Christian perception of a Holy mother, Munch degraded the value of woman. The artist was a misogynist and his truth is that a woman is a source of all suffering, the mother of heresy and the incarnation of pure evil.  [6]  Expressionists, like Munch, disregarded mimetic approach to arts; instead they wanted to show the world through the prism of their own perception. Thus, the basic idea in this movement was not to imitate reality (so they were not interested in absolutes), but to present the very subjective and very personal opinions- just as in the coherence theory of truth. The theory claims that a proposition is true if it fits in with our overall set of beliefs. Although the concept of woman being a demon could be true for Munch, for majority of people it would be perceived as extremist and prejudiced view. However, expressionism, because of its fundamental assumptions, speaks more of the painter than of the world. Munchs perception derives from fear of woman that is why it is so narrow. Nevertheless, this narrowness is a deliberate action. Author, as an expressionist, through his works tells me: This is MY truth, what is yours? The painting of Rij-Rousseau does not describe, as the title could suggested, the outer look. In Portrait she depicted three different bodies which shows the complexity and diversity of womens nature. It can be cheerful and warm (orange), or impassive and cold (green), and there is also the person between them, poorly visible, brown- imitating the whole uncertainty and mystery of other womans embodiments. Rousseaus truth about woman is hidden in symbols: the green face resembles a mask, so the outer look, which would mean that the blithe person represents the inner nature of woman. Therefore, the painting represents the very essence of the cubist theory of truth-to present the object in the widest context possible by considering it from multiple viewpoints. In other words cubism assumes that we are getting closer to the truth the more perspectives we get to know. But now again, how good truth is that? I now realize that the absolute truth about woman means summing up all the personal truths about each woman separately, yet it is an impossible task. Furthermore, any attempt to draw a mathematically moderate view about woman would mean going back to the very beginning, so the concepts of generalization and mimesis. Therefore, what is gained through dealing with arts is not only finding out how great is our own ignorance, but also how unattainable to comprehend, and impossible to depict, the absolute truth is. What have I gained through dealing with the paintings of Vermeer, Renoir, Munch and Rousseau? The Milkmaid told me what the social status in Netherlands was in XVIIth century. Renoir immortalised some girls look at the time of a sunset, the emotions that her face expressed and the move of the grass around her. Munch told me of his greatest despise and fear of women. Rousseau showed not to trust the first impression because a woman is a very complex being. Therefore, I am wiser with the views of these four paintings, bur now I realise I am poorer with the lack of the perceptions depicted in another thousands paintings. Thus, I know that I know nothing  [8]  of the absolute truth about woman, since I just grasped only an idea of the truths complexity. When Picasso said that art is a lie that helps us realise the truth I believe he didnt mean any specific style, i.e. he didnt mean that realism is a lie, but that all the achievements in arts, in all styles and assumptions, are just n ot complete. Having in mind that Picasso actually created cubism, I cant resist evaluating his claim in relation to cubist theory of truth. According to this idea the absolute truth is a mosaic composed of various elements individual approaches. In other words, what Picasso meant is that arts is closed in specific boundaries of different styles and cannot present the whole picture, therefore is a lie. However, as new forms and concepts are created the more perspectives are added and, piece by piece, the mosaic is being completed.

Economic Development Record Essay

Economies all around the globe develop over time depending on the policies that they undertake to utilise the resources within their boundaries. Nations that utilise their resources experience economic growth and there is great inflow and outflow of goods and services in those nations. Economic growth means that the nation is utilising its resources efficiently and this has resulted into increased productivity within the various sectors of the economy. Industries within the nation increase as a result of the improved economic performance that will result to the creation of more employment opportunities hence reducing unemployment levels in the nation (Daquila 2004). Due to the increase in the number of industries and output in the already existing industries, employment opportunities increase and this brings about a reduction in the number of citizens unemployed. Unemployment is very crucial in calculating a nations GDP which is an indicator to a nations performance. Economic growth depicts an increase in pa capita income. This is the income associated with every individual in the economy although they may not have it in their possession (Daquila 2004). Pa capita income is calculated by dividing the overall value of the economy proportionately divided between the nation’s overall economy. On the other hand, Daquila (2004) defines economic development as the improvement in the livelihood of individual citizens of a nation together with that of the systems that are in place in the nation. A nation’s system involves economic, political and social framework from which the economy operates in. All the above plus economic growth defines economic development. Economic performance is measured using various tools that include GNP and GDP. GDP estimates the economic performance giving consideration to internal and external trades (Daquila 2004). In establishing the GDP, consideration is given to consumption in the nation, expenditure by the Government, investments in the nation, trades in the nation that is imports and exports. Consumption comprises of perishable & non-perishable goods and services within the nation. In determining the non-perishable goods they are assumed to be products that will last for a period of three years from the date of manufacturing. GNP refers to the difference between imported products and services and the exported products. The value of this difference added to the value of products & services generated within the economy results to the GNP. To evaluate the economic performance of a nation, a number of indicators are used to measure exactly how the economy is progressing towards its economic objectives. A nation has to determine the level of consumption of its individual citizens (Todaro 1997). The level of consumption means the proportion an individual spends after receiving their income. The remaining part of the income is saved. The consumption level of a nation determines the amount of savings in the economy. Savings on the other hand, stimulates growth in the economy. When individuals increase their savings, the financial institutions hold more money thus the cost of accessing funds is low. Business entities in the nation are able to access funds at a low cost from the financial institutions. The borrowed funds are used for the expansion of business operations across the industries within the economy. The expansion of business activities results to an increase in national output and employment (Munk & O’Hearn 1999). The increase in national output increases the exports of a nation in respect to its imports. The resulting balance of trade will be positive hence the nation has more in terms of foreign reserves that will assist them when it comes to purchasing produces from other countries. Therefore, savings are very vital for the improvement of the performance of an economy. T o induce savings in the economy, the opportunity cost of saving has to be high so that individuals can adopt a trend of saving since they are compensated bountifully for foregoing consumption. It can be concluded that increase in savings results to an increase in investments that contribute towards the growth of an economy. Increased activity within the economy results to an increase in production levels of the economy (Ros 2000). The nation is able to produce more products & services, that are able to meet the needs of the nations population. Since the products are locally manufactured, they are quite affordable thus individuals are able to spend less and save more. This results to an increase in the real income that individuals have in their pockets and are ready to spend. It should be noted that increased production has to be met by equal consumption otherwise it could result to losses that will hurt the economy. Depending on the expansion of the economy, rates of unemployment adjust themselves in more or less the same rates. Increased production will require an increase in manpower that will be able to maintain the production levels. Nations with large populations face a major challenge in absorbing its citizens in the workforce. Individual citizens for a start need to have the relevant skills required to perform in different industries. Education in these economies has to be committed and directed towards instilling individuals with the necessary skills that will be useful in rendering service to the various sectors of the economy. A skilled population results to economic development since the individuals are prone to exercise their skill base towards living a better life thus contributing to the economy’s growth. Economic development depends also on the expenditure of the nation’s authority (Preston 1999). The government consists of various departments that oversee the implementation of policies that improve the state of the economy. These departments are given the financial power to implement and improve on the various economic aspects for example the development of basic infrastructure within the economy. In improving the infrastructure, the government releases money from its coffers to the public. This way, the supply of money increases to equal its demand. In most cases, when the Government spends on its development programs, money supply is more than the money demanded. If this situation is allowed to go unchecked it might result to inflation and later to stagflation; a situation where both the unemployment and inflation rates are so high. Therefore, Government involvement in an economy has to be considered carefully when undertaking development projects. Increased rates of production in an economy increases the output levels that may go over and beyond in meeting the local demand. Having satisfied the local demand, excess products can be exported to other nations. This facilitates international trade where nations exchange commodities they have in excess for commodities they do not have. Nations should avoid importing more and exporting less as this leads to a negative trade balance. This means that the nation spends more in foreign currency than it receives. Third world and developing nations should consider the above variables if they are to achieve spurred economic growth. They most important is to ensure that their population is skilled so that they can utilise their skills by establishing some income generating activity that will create employment opportunities and increase the total production of their economy. MALAYSIA. The present day Malaysia attained independence in the 1957 from the British administration and accorded the sovereign status in 1963 (Malaysia 2008). The Britons established themselves in early 1880’s and later went on to control the state by establishing a self governing authority for the Malaysian people. The Federal States of Malaysia were incorporated in the 1895. The states were under the British control until when the Japanese invaded in 1942. Britain waged war over Japan and in 1945 the states where reinstated under the jurisdiction of the British. In 1948, guerilla movements begun protesting against the colonial authority that resulted to an emergency declaration. In 1965, the Federation state of Singapore disintegrated from the member nations opting for self governance. 1957 saw the attaining of independence of the Federation from the British authorities. In the late 1960’s, the Malaysian government sought to balance the economy among its nationals so as to attain economic development by equal distribution of national wealth among its constituent communities (Malaysia 2007). Malaysia has got a rich culture that is evident from its diverse communities and language speaking citizens. Its population consists of Chinese speakers, Indians, English, among other languages (Malaysia 2007). The large population consists of Malaysian natives alongside Chinese, Indians and other local communities. Malaysia consists of individuals who practise different religious beliefs that include Hindu, Islam, Buddhist, Sikh among other religions. The richness of Malaysia presents it with a competitive workforce than any other nation in the world. The improved economic performance of Malaysia is as a result of a united people from different cultures and not allowing politics to ruin their nation. Malaysia has had to maintain a united nation and focussing on the togetherness of the nation by avoiding self interests. Malaysia is enriched with natural resources that include crude oil and that it has had to deal with the resource in a careful manner to avoid the negative repercussions that result from the unfair distribution of natural resource gains. Gross Domestic Product (GDP). The GDP reflects the total activity in the economy. This considers both the public and private sectors of the economy and their contribution towards the development of the economy. It also takes into consideration the behaviours of the citizens in regards to spending. Malaysia’s GDP has been increasing constantly from 1998-2008 at a rate of 6- 9 per cent. In 2007, the GDP stood at $357. 4 billion. Malaysia’s population is slightly higher than 26 million thus giving a pa capita income of $13,300 (UNDP 2008). The GDP in 1986 was at $28. 2 billion. The GDP increase signifies an increase in all major facets of the economy. Government spending has increased from 16. 4 in 1986 to 12. 0 in 2006. The Government’s decision to reduce its spending avoids the negative impacts that result when money supply is more than the money demanded in the economy. Key sectors of the economy that have immensely contributed to the GDP are industrial sector that has been a leading contributor since 1986 to 2006 with a percentage of 49. 9 compared to 38. 5 in 1986. Manufacturing follows a close second with 29. 8% in 2006 from 19. 3% in 1986. The provision of services has also reduced from 41. 7% to 41. 3% in 2006. Lastly, agricultural sector has reduced its contribution to the GDP from 19. 8 per cent to 8. 7 per cent in 2006 (Malaysia 2007). The above data shows that the economy has shifted its dependency on agriculture as a contributor to the GDP. The economy has shifted its focus mainly from agriculture to industrialization where industries are the main contributors to the GDP. Industrial growth is a major boost to the Malaysian economy since it increases the nations production ability and is able to meet the demand of the nations internal demand. This has elevated Malaysia to an industrialized nation due to its potential ability to the production of services & products. These increased production levels are able to meet local and international demand hence receiving foreign currencies that will result to a positive capital account. National Consumption and Savings. According to the World Bank report, the percentage of consumption by the citizens that was used in calculating the GDP decreased from 54. 2 in 1986 to 50. 3 in 2006. That of the government decreased from 16. 4 per cent to 12. 0 per cent . The mean growth per annum indicated the citizens consumption had decreased from 9. 1 to 7. 0 and Government spending reduced from 6. 5 to 5. 0. The figures show that both the Government and individuals in the nation have adopted a behaviour of saving or reducing their spending habits. By reducing spending, more is saved with the nation’s financial institutions as the individuals are compensated for foregoing consumption. Savings spur growth in the sense that investors will borrow funds and expand their business activities that will result to an increase production. The increase in production across the industry results to increase in the national output. An increase in national output will increase the nations participation in international trade thus achieving a favourable trade balance. Low government interference in the economy maintains a stable money supply within the economy. By maintaining stability in money supply in the economy, inflation is avoided since it negatively impacts the economy. Increased government expenditure increases the money supply in the economy. This increases the purchasing power of individuals in a way that they can be able to purchase goods and professional services in the country. This presents a situation whereby there is much money chasing few goods within the economy. To mop up this effect the regulating financial authority will need to increase its interest rates. This means that there will be an increase in cost of borrowing that will result to inaccessibility to funds by corporate organisations. Corporations will be unable to maintain their current levels of production thus the need to lay off its workers. This situation will be characterized by increase in unemployment rates, reducing national output and economic performance. The economy will not be performing at its optimum and will have wasted on its human resource. Therefore, Government involvement in large amounts destabilises a nations economic performance. Income and Output Growth Rates. The export of manufactured products have increased since 1986 from USD6. 009m to USD124. 530m in 2006 (World Bank). The above figures indicate that manufacturing has increased over time and that the economy has shifted its focus to increasing its industrial capacity. By increasing industrial capacity ensures that the nations industry is able to satisfy the ever growing demand of the nation. Economic development requires that a nation first satisfies its population fully before embarking on the satisfaction of outside markets. The nation is required to make sure that all key markets are satisfied and that the demand of a nation is met. These means that different industries will have the capability of serving different markets. Unless a nation’s population is satisfied, development of an economy is difficult. New industries are formed that provides the final consumer with a product similar to those of another company to enhance competition. Competition among industries ensures the production of quality products that will give the consumer a wide range of choice. Companies will strive to out do one another in both the primary and secondary markets. The increased income and output growth rates can be attributed to the rich natural resources that are found in the nation. The natural resources are raw materials that are processed into finished products that are exported to international countries. As of 2004, its partners included the US, Korea, Singapore, Germany, Japan, Hong Kong, Indonesia and China. Among the raw products include oil, copper, timber, natural gas and iron (Malaysia, 2007). Most industries in Malaysia are processing based located mainly on the western island. They process the raw materials that are extracted into finished products. It is due to this value addition that the nation is mainly industry based and most of the population is employed. The industries in Malaysia also deal in the production of textiles and electronic equipment. They development of industries in the large scale have contributed significantly to the development of the Malaysian economy. Employment and Unemployment Percentages. Malaysia’s population comprises of the elderly, the middle aged and the young. From the world bank report, children legible for enrolment into primary schools stood at 96 percent for both male & female students in 2006. this indicates that the Malaysian government embraces education as a factor to economic development. A skilled population is economically beneficial since the individuals will strive to utilise their skill base towards achieving their own development that will later translate to economic development. One of the key issues addressed by the UNDP towards achieving the Millennium Development Goals (MDG’s)is human capacity building which means that nation should ensure that they impart skills on their citizens by way of offering courses education to all its citizens and ensuring that it is affordable for all (UNDP). A nation that has an educated population is set to reap benefits from that same population because they will aim at exercising their knowledge in the various fields of expertise and also aim at developing products that will improve on the already existing ones therefore looking for new efficient ways of production. Malaysia’s literacy rate stands at 89 percent as of 2006 indicating that most of the population is skilled resulting to lower unemployment cases. Malaysia is among the developing nations and is striving to attain the MDG’s that will direct them to achieving a developed world status. With about 5 per cent of land is available for farming, Malaysia cannot only depend on farming and that the population must acquire some knowledge in other activities. As of 2007, Malaysia’s unemployment rate stood at 3. 2 per cent and inflation rate stood at 2. 1 per cent. The Phillips Curve states that inflation and unemployment are inversely related whereby high inflation results to low unemployment rates and vice versa. This is because when there is high inflation in an economy, most of the population has got some amount of money therefore resulting to some form of engagement in income generating activities. Therefore Malaysia as an economy has really tried in dealing with unemployment levels by making sure that a large part of its population is skilled. The Malaysian Government has formulated a number of policies aimed at improving its economic performance for example the New Economic Policy of 1971 (Malaysia 2007). Government Budget Activity. Government involvement in an economy should be restricted for it can have diverse negative impacts on the economy. The government, however, has got to interfere with severally in the economy since it has to provide for social amenities such as water, education, infrastructure among others for they cannot be left to the control of the private sector. When providing for these amenities, the Government gets money from the state coffers and pays the contractors among other parties that will implement development policies in the nation resulting to increased money supply. By increasing money supply, prices of products rise since the demand for the products will also increase. This will lead to increased production of products and increase national output that will result to more employment opportunities. Therefore government interference is good in the short run as it will stimulate the economic activities. However, continued government interference will hurt the economy in the long run since more money is available in the nation thus raising the prices of the products in the economy. The soaring inflation will then destabilise the nations exchange rate that will depreciate. With the depreciating of the local currency, Ringgit, imports become expensive since industries and individuals will require more money to import products thus hindering the efficiency of engaging in international trade. From the world bank report 2006 on Malaysia, 99 per cent of the population has access to clean water supply. The government has therefore given preference to the basic resources that affects the Malay in their daily lives. The report also gives the figures for Government involvement as; current revenue has decreased from 26. 8 per cent in 1986 to 21. 6 per cent in 2006 while the overall budget balance has increased from a deficit of -0. 8 per cent in 1986 to 2. 8 per cent in 2006 (Malaysia 2007). This figures indicate that the government has restricted on its involvement in the economy so as to control the economic impact caused by excessive Government involvement.