Implications Of The Debt Crisis Essay Online For Free - Free Essay Example

Sample details Pages: 14 Words: 4090 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? The recent global crisis had multiple causes: The general cause appears to be a rapid growth of the level of debt (especially in the case of households), accompanied by sharp increases in real estate prices. However, the complexity of the crisis was increased by the existance of individual reasons in each country. The article aims to synthesize some of the most important reasons that led to the current crisis both general and country-specific (USA, Iceland, Ireland, Greece, Portugal, Spain). Don’t waste time! Our writers will create an original "Implications Of The Debt Crisis Essay Online For Free" essay for you Create order Last but not least, the article analyses some of the implications of the crisis for the markets and for the regulators. Introduction The financial crisis that hit the global economy in 2007 and is still continuing in 2011 has been the largest such crisis in the post-world war period. Its implications have been so numerous and some of them so radical that understanding this crisis has become a necessity for all of us. Having started as a liquidity crisis, it developed to the extent that it generated a recession in many countries, and it has had implications not only on the banking system, but also on the real economy and on the economic dynamics. The current article aims to make a synthesis of current research on this topic with regard to the multiple causes of the recent crisis (in the USA and in Europe) and to its implications. Causes of the crisis Despite the unprecedented global reach of the recent crisis, the European Commission (2009) believes some of its causes are similar to causes of previous crises, such as the Asian crisis in late 1990s or the crisis of the Nordic countries in the early 1990s. The common feature was that all these crises were preceded by long periods of rapid credit growth, low risk premiums, abundant availability of liquidity, strong leveraging, soaring asset prices and the development of bubbles in the real estate sector. Indeed, McKinsey (2010) made a quantitative and qualitative analysis of the evolution of debt levels during the pre-crisis period in several countries in the world, which revealed that after 2000 debt grew significantly in most mature economies, enabled by the globalization of banking and a period of unusually low interest rates and risk spreads. The borrowing increased substantially in the case of households, especially through home mortgages. The household debt level increased s ignificantly relatively to the household disposable income, which was ignored because the ratio of debt to assets appeared stable before the crisis due to the rising house prices. The level of debt was less worrying at the start of the crisis with regard to the business sectors, with the exception of the commercial real estate sector and some banks. Coming back to the level of debt, the McKinsey (2010) piece of research also quantified the structure of debt for a selection of 10 developed countries and 4 emerging countries in 2008. These results are summarized in the chart below, which shows what percentage of the debt of each country was issued by government, financial institutions or non-financial institutions, and what percentage of a countrys total debt is represented by household debt. All the numbers represent a percentage of the countrys GDP. Figure 1: The structure of debt for several countries as of 2008, as % of GDP. (Source: McKinsey (2010) report). These numbers have also been used by the Economist (2010a), which took the previous study further by analysing the dynamic of the increase of the government debt in analysed countries. Thus, in the 10 developed countries, the total debt increased from 200% of GDP in 1995 up to 300% of GDP in 2008. Some countries displayed even higher increases in the ratio between debt and GDP, such as 1200% for Iceland and 900% for Ireland. In the case of the latter two countries, the debt level proved unsustainable and pushed them into crisis in 2010. The chart shows that the countries for which the ratio between debt and GDP reached the highest level are the peripheral countries of the Eurozone (Greece, Portugal, Italy), but also USA, Japan, Canada and othes. The countries with the lowest ratio of debt to GDP in the sample were Russia, India and China, which also happenned to have a spectacular recovery recently following the crisis. At a more specific level, each of the countries hit by the recent financi al crisis had individual causes which influenced the development of the crisis both in specific countries and overall, since in some situations a strong contagion effect of the crisis could be noticed. With regard to the specific contry reasons detailed below, several economic indicators may be mentioned. The charts below detail the evolution of these economic indicators for the countries included and for the period 1995 2011. All data is available from the IMF and it is updated as of October 2010: Figure 2: GDP % change for a selection of countries, 1995 2011. (Source: IMF Database). The numbers represent the percentages of year-on-year changes for the constant price GDP. The numbers for 2010 and 2011 are IMF estimates, updated as of October 2010. Figure 3: Current account balance for a selection of countries, 1995 2011. (Source: IMF Database). The current account includes all transactions other than those in financial and capital items. The major classifications are go ods and services, income and current transfers. The focus of the balance pf payments is on transactions (between an economy and the rest of the world) in goods, services, and income. The numbers for 2010 and 2011 are IMF estimates, updated as of October 2010. Figure 4: General government gross debt as a % of GDP for a selection of countries, 1995 2011. (Source: IMF Database). Gross debt consists of all liabilities that require payment or payments of interest and/or principal by the debtor to the creditor at a date or dates in the future. This includes debt liabilities in the form of SDRs, currency and deposits, debt securities, loans, insurance, pensions and standardized guarantee schemes, and other accounts payable. The numbers for 2010 and 2011 are IMF estimates, updated as of October 2010. Figure 5: Evolution of the unemployment rate for a selection of countries, 1995 2011. (Source: IMF Database). The numbers for 2010 and 2011 are IMF estimates, updated as of October 2010 . The USA was the first country to be hit by the crisis, and this was due to a series of issues. Firstly, the large mortgage debts, which were mentioned above. Secondly, some large financial institutions in the USA were confronted with a gradual decline in the quality of capital, as they had asset growth with increasing amounts of hybrid capital instruments, such as certain forms of preferred stock (McKinsey (2010)). Such capital instruments were unable to compensate for credit losses during the crisis, which brought a degree of vulnerability for those financial institutions in front of the crisis. Thirdly, instead of keeping loans on their own balance sheets, the banks moved towards the originate and distribute model, which led to a decline in lending standards (Brunnermeier (2009)). The banks used to create diversified portfolios of credit instruments (mortgages, corporate bonds, credit card receivables etc), then slice these portfolios into a number of tranches and sell these slices to various categories of investors. Each slice used to receive a credit rating from rating agencies and as a result, the slices were ranging from the superior senior tranche (the safest tranche, AAA credit rating, the first in line to be paid out of the cash flows of the portfolios, but with the lowest interest rate) to the equity tranche (the most junior tranche, lowest credit rating among the tranches, the last in line to be paid out of the cash flows of the portfolios, but with the highest interest rate). The low lending standards generated by such actions from the banks, combined with the cheap credit available at that time resulted in the housing frenzy that laid the foundations for the crisis. Icelands specific reason behind the financial crisis was, according to The Economist (2008), the fact that it had built a financial house of cards. Iceland represents an extreme case of a huge financial system towering over a small economy. Behind the encouraging image of low u nemployment, income per person above the average in the European Union, huge investments in green energy and inflows of foreign investment, the countrys 3 largest banks and its households built huge amounts of debt. The credit crisis was enough to make Icelands banking system, its credit rating and its currency all collapse at the same time. As a result, Icelands GDP fell by 15% from its top point to the bottom reached during the crisis. Ireland also proved to be different with regard to the way in which it was hit by the crisis. Morgan Kelly, an economist at University College Dublin, cited by The Economist (2011a), said that What happened in Ireland was very boring. There were no complex derivatives or shadow banking systems. This was a good old 19th-century, or even 17th-century, banking collapse. It appears that Irelands only reason to become hardly hit by the crisis was that during the previous decade, Ireland had turned into a nation of property developers. Ireland enjoyed average annual GDP growth of almost 10% between 1993 and 2000, which continued even afterwards, fueled by the low interest rates environment and excessive lending. Irelands fall started when property prices started falling in 2006 2007, and it continued with the crash of shares in Irish banks, the transformation of the banking crisis into a sovereign-debt crisis, the big rise in its borrowing costs and it culminated with Irelands acceptance of a bail-out from the EU and the IMF in November 2010 (the second such situation for a EU country). The rescue package received was EUR 85bn, out of which EUR 35 bn is aimed at recapitalising the Irish banking system. The cost of recapitalising the Irish banks has indeed proved to be significant. According to Deutsche Bank (2011), if the EUR 35bn amount previously mentioned would be fully used for this purpose, the estimated total cost of recapitalisation of Irish banks would reach 52% of Irelands 2009 GDP. Greece was the first EU country to receive a bail-out from the EU and the IMF in May 2010, worth EUR 110bn. Some of its greatest issues have been its high level of public debt and its high budget deficits. As The Economist (2010c) noticed, in 2001 when joining the euro, Greece already had a public debt in excess of 100% of GDP. Adoption of the euro currency allowed more favourable terms for the refinancing of government debt, and the strong GDP growth masked the weakness of Greeces public finances. Greeces government debt reached 115% of GDP in 2009 and its current account deficit reached 14.6% of GDP in 2008. Greece had leant too heavily on consumer spending and relied on foreign capital to supplement its low savings (The Economist (2010c)).Nelson et al (2010) went into further detail and listed additional reasons behind the Greek crisis: high government spending, weak revenue collection, weak enforcement of EU rules regarding debt, and others. In addition to these facts, Greece also faced certain restrictions, suc h as: impossibility to devalue the currency due to the membership into the eurozone, and the lack of competitiveness of its economy partly due to overhiring and overpayment in the public sector (The Economist (2010d)). Last but not least, Nelson et al (2010) noticed that complex financial instruments may have played a role in helping Greece accumulate and conceal its debt. One implication of the Greek crisis was the contagion effect to other European countries. Even if these countries only shared few of Greeces issues, investors still have become more prudent with respect to Portugal (which also has a high budget deficit), Spain (in need to restructure its economy) and Italy (heavily indebted). Portugal increasingly started to be seen as a potential victim of the sovereign debt crisis following Greeces crisis. Portugals weaknesses have been a large public debt and a high budget deficit, but its situation has been slightly different from that of Greece. Portugal enjoyed rapid econ omic growth before joining the euro in 1999, but afterwards it has been impacted by a steady loss of competitiveness in wages. The 1990s have been a lost decade for the economy and as a result, it became difficult to manage the countrys public finances (The Economist (2010c)). Moreover, the further expansion of the European Union towards Eastern Europe in 2004 has diverted part of the foreign direct investment away from Portugal towards the new members. Investors expect April and June 2011 to be an important test for Portugal, as Portugal will need to refinance EUR 9.5bn of public debt then. The yield of 6.7% paid by Portugal for the ten year bonds sold in January 2011 is very close to 7%, which some Portughese officials have declared that is not a sustainable level (FT, 7th Jan 2011). Spain also started to be seen as a potential victim of the sovereign debt crisis following Greeces crisis, even if Spains public debt level (at less than two thirds of its GDP) is not large relativ ely to the other countries. However, Spains problems lay with its local banks (cajas) and its housing bust. According to The Economist (2010b), Spanish banks have outstanding loans of EUR323bn to property developers (equivalent of 31% of GDP); and they already had provisions of EUR87bn for bad loans by the end of 2010. Deutsche Bank (2011) explains that in addition to this exposure of the banking system to the constructions sector, Spain is also negatively impacted by the highest level of unemployment among the major developed countries. In this respect, Spain is similar to Ireland. Deutsche Bank (2011) also highlights the major differences between the Irish and Spanish banking systems: the better condition of the two largest and internationally diversified Spanish banks (vs the major Irish banks), the heavier reliance of the Irish banks on inter-bank sources of funding, the stronger banks overall capital adequacy before the intensification of the crisis in Spain vs Ireland. Implications of the crisis for Europe The implications of a crisis can be numerous and they can refer to the financial sector, the real economy, regulations etc. As Cogman Dobbs (2008) pointed out, the impact of previous crises on the real economy has not always been the same. The direction of the impact was due to the actions pursued by governments for recapitalizing banks, introducing stimulus measures and restoring investors confidence in the economy. According to Reinhart Rogoff (2008), countries usually need two years in order to start recovering from past recessions after major banking crisis. However, there were several situations when a much longer period was needed for starting the recovery: Japan needed almost a decade (the lost decade) following the crisis in the 1990s; the USA also needed a longer time to start recovering after the Great Depression in 1929 1933, when 28% of GDP was lost. Cogman Dobbs (2008) suggest that one important aspect to assess is the impact that financial crises have on the availability of credit in relation to this, the impact of a potential shortage of credit has on the real economy and on consumer confidence has to be assessed. With regard to the availability of credit, the McKinsey (2010) report proved that 44 out of the 45 crises identified between 1929 2010 were followed by periods of deleveraging, where they defined deleveraging episodes as periods in which the ratio between total debt and GDP declined for at least 3 consecutive quarters and the total fall was at least 10%. Along these results, the report would expect that a series of sectors in some countries would deleverage in the near future (UK, USA, Spain, Canada and South Korea). The report also concluded that deleveraging episodes usually last 6-7 years and their initial years may also witness a recession. On a different note, it is interesting to mention that Lund Ruxburgh (2009) have tried to assess how the fortunes of the power brokers have changed following the recent crisi s (McKinsey Global Institute defined in 2007 the power brokers to be four large groups of investors which seemed to have an edge over others: oil exporters, Asian sovereign investors, hedge funds and private equity firms). Their conclusion was that in almost any scenario (depending on the future development of the crisis) the previously defined power brokers would remain significant players in the global capital markets. The big winners are the oil exporters and Asian sovereign investors, as the source of their wealth will persist: trade surpluses. As noticed by the authors, the rapid growth of hedge funds and private equity firms has stopped abruptly, but they are still expected to recover in the future. With regard to Europe, the implications have also been very diverse and of a very diverse nature: the decoupling of the core European countries from the peripheral ones, the creation of the European Financial Stability Facility (EFSF), debates on the topic of European integratio n, debates on complex derivatives and their regulation, implications for the government debt issuance, and others. As mentioned above, one important aspect of the crisis is that it has not impacted all European countries uniformly. In fact there is a big divergence between the core countries (Germany, France) and the crisis-hit peripheral countries (Greece, Ireland, Portugal and Spain): while the core countries have been enjoying an economic recovery since 2010, the peripheral countries are still struggling with recession. Being part of the same monetary union (ie the eurozone), they are goverened by the same monetary policy. While all eurozone countries were at the height of a financial and economic crisis, there was no debate regarding the apropriateness of the monetary policy. However, following the recent divergence, such debates have increased, showing a difficult task ahead of the European Central Bank regarding the rising of the interest rate for the euro. The four main pe ripheral countries mentioned above do represent a significant 18% of euro area GDP. However, Germany and France together represent 50% of euro area GDP. (Deutsche Bank (2011)) One of the consequences of the financial crisis in Europe was the creation of the European Financial Stability Facility (EFSF) in June 2010 by the 16 euro area member states. The EFSF has been fully operational since August 2010 and its purpose is to finance loans for euro area member states which are experiencing difficulty in obtaining financing at sustainable rates (EFSF (2011)). EFSF will be able to borrow up to EUR 440 bn by issuing bonds guaranteed by the euro area member states, and it has received the best possible credit rating (AAA) from all three credit rating agencies (Fitch, Moodys and Standard Poors). The money borrowed through such bonds will then be lent to struggling euro zone countries. EFSF issued its first bond on the 24th of January 2011 and met spectacular demand on this occasion, bankers not being able to recall such a large order book for any bond, government or corporate (EUR 40bn in orders vs EUR 5bn notional sold) (FT (2011b)). This first bond has been seen as a landmark deal and some investors said it could be a precursor to the first common eurozone bond. The European Commission also agreed on the creation of a permanent crisis mechanism: the European Stability Mechanism (ESM). ESM will become operational in 2013 when the EFSF expires and it will build on the existing EFSF. The aim of ESM will be to support countries of the euro zone which may find themselves in financial distress. ESM loans will enjoy preferred creditor status and they will be junior only to IMF loans (EFSF (2011)). The recent crisis also brought changes in the government debt issuance practices in the 16 euro zone countries. Before the crisis, these practices had converged to a common standard which involved placement of long-term, fixed rate debt denominated in national curren cy via competitive auctions. De Broeck Guscina (2010) have proved that after mid-2008 this standard could not be followed anymore, because of the increase in sovereign funding needs and the fall in investor risk appetite, which made risk premia rise. They performed a research on a sample of 3,000 debt issuances by governments in the euro zone and Denmark in 2007 2009, which was divided into a pre-crisis period (mid-2007 to mid-2008) and a crisis period (mid-2008 Dec 2009). The main findings of the research were that the new standard for issuing government debt in the countries studied was defined by shorter maturities (because such debt is less risky for the investor), foreign currency denomination (because such debt shifts currency risk exposure from the investor to the debtor), and/or floating rates (because such debt transfers the risks related to changes in global interest rates and in the countrys perceived creditworthiness from the investor to the debtor). Therefore, the im pact of the crisis was that it has forced governments to assume additional risk. This negative effect was especially pronounced in countries with high deficit and high debt. De Broeck Guscina (2010) concluded that the mentioned change in the standard for government debt issuance allowed governments to deal with the reduced risk appetite of investors and to limit the impact of high deficits and debt on interest payments, but at the same time exposed them to significantly higher risks of refinancing and repricing, and sometimes to exchange rate risk as well. One other implication of the crisis was that the use of complex financial instruments has been more and more questioned, and so were the financial regulations that are concerned with them. Nelson et al (2010) remind that during the crisis, the Greek governments used derivatives to conceal the true level of Greeces debt. For example they traded currency swaps through which they were receiving upfront payments which under EU acc ounting rules could not be recorded as loans, even if in essence they were. Some do believe that derivatives played an important role in creating Greeces debt crisis and as a result, an urgent need to tighten financial regulation for derivatives has been identified. Last but not least, on a global level, the development of the crisis also brought critics of the credit rating agencies. As stated in a previous article (Minescu (2010)), following each financial crisis there has been a lot of talk on the failure of ratings issued by credit rating agencies to predict the crises. This failure may be understood in multiple ways, such as: failure of a rating to predict default, failure of a rating to be stable, failure of multiple agencies to issue similar levels of credit rating for the same country at the same time, or failure of an agency to issue a rating in the correct category of ratings (ie investment grade or junk). Talk of the failure of ratings has been central to this recent c risis as well and in August 2007 the head of Standard Poors even resigned amid criticism received from politicians and investors about the agencies failure to signal the risk of securities backed by sub-prime mortgages. As a result of the new wave of critics directed at rating agencies during this crisis, regulators are again aiming to improve the legislation concerned with conflicts of interest that result from the business models used by certain agencies (FT (3rd Feb 2011)). Conclusions The recent global crisis had multiple causes: The general cause appears to be a rapid growth of the level of debt (especially in the case of households), accompanied by sharp increases in real estate prices. In this respect, the crisis may have similarities with previous crises, such as the Asian crisis in the early 1990s. In addition to this, there have been individual causes for each country: In USA -the increased use of hybrid capital instruments and the adoption of the originate and distribute model by the banks, which involved the creation of diversified portfolios of credit instruments and their resale as a redesigned product; in Iceland the huge growth of the debt to GDP ratio to 1200%, which led to the fall of local banks; in Ireland -the burst of the real estate bubble in the context of a debt to GDP ratio of 900% generated huge costs for recapitalizing the Irish banking system; In Greece unsustainable budget deficits, lack of competitiveness of its economy due to overhi ring and overpayment in the public sector, inappropriate use of complex financial instruments; in Portugal large public debt and high budget deficit; in Spain the housing bust and its negative impact on the Spanish banking system, and the highest unemployment rate among all developed economies. Several countries have already received external help from the IMF and other organizations: Greece, Iceland, Ireland etc. The implications of the crisis have also been very complex: lower availability of credit, the decoupling of the core European countries from the peripheral ones, the creation of the European Financial Stability Facility (EFSF), debates on complex derivatives and their regulation, implications for the government debt issuance, criticism of the credit rating agencies for failing to predict the crisis, and others.

Negative Effects of Consumerism Essay - 1753 Words

Negative Effects of Consumerism on North American Society Consumerism is damaging to our society, in our North American society consumerism is often portrayed to be a negative aspect of people’s lives. However, one can also argue positive effects that result from consumerism, or emphasize on the negative effects of consumerism and how it can be a constraining force in one’s own life. Consumerism is an idea of an economic policy that the market is shaped by the choice of the consumer and continues to emerge to shape the world’s mass markets. Some of the negative effects of consumerism that many critics may argue and that will be further emphasized on are the overexploitation of consumerism which has lead to economic poverty, and increase†¦show more content†¦The rich consume at the expense of the poor as further resources are expended maintaining this unequal balance of power. 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Marketing Channels on Tesco Thailand Free Essays

Managing Distribution and Marketing Channel: TESCO Lotus This essay is to written in to express my opinion on group 4 presentation on Tesco Lotus marketing channel and further analyze the marketing channels in more details. Tesco Lotus has undoubtedly changed the way people in Thailand goes to supermarket since it entered Thailand in 1998 and now has over 380 Stores as part of a joint venture with CP Group. Consumer Marketing Channels Tesco Lotus in Thailand uses 1 level of consumer marketing channels as they themselves act as retailer. We will write a custom essay sample on Marketing Channels on Tesco Thailand or any similar topic only for you Order Now The suppliers would have to re? ll their inventory at Tesco Lotus Distribution centers which is placed across the country and Tesco will distribute the goods to each branch themselves. In order to serve the customers better by minimizing out of stock time and more Tesco Branches ef? cient and cost effective, Tesco Lotus divides the goods into 3 (Act as retailers) categories: Fast moving goods, Average moving goods, Slow moving goods. They categorize their products by dividing each of them into one of these categories and therefore, fast moving goods such as grocery, can be delivered fresh and never run out Consumers of stock everyday, whereas slow moving goods, such as furniture only needs to be re-stock every week, rather than everyday. Tesco Lotus distribution system is managed by themselves and therefore it is also their advantage over their rival, Big C, who uses DHL as their distributor. Tesco Lotus can control their own distribution system and the distribution cost. The example is presented during the presentation which is using Bio-diesel for all Tesco Lotus distribution trucks which can save a lot of transportation cost. Types of Store Tesco Lotus operates in various types and sizes of store. There? re 6 types of store sizes. 1. Hypermarket, 2. Tesco Lotus Valued, 3. Talard Lotus, 4. Tesco Lotus Express, 5. Plus shopping mall, 6. Community Mall. The hypermarket is the full size store with the most assortments and products, Tesco Lotus will place this store type mainly in the outskirt of the city to serve the people in the city. The Tesco Valued store is smaller than the hypermarket type and has less assortments and products, Tesco Lotus will mainly select the faster moving goods and leave out more expensive assortments or products as this type of store will be places mainly in more rural area. Talard Lotus shares a similar concept to the Tesco Valued but mostly focuses on fresh grocery. This concept came from the local market in Thailand. Tesco Lotus wants to create more local experience for the local in upcountry. Tesco Lotus Express, this is the smallest store size and it is more like a convenience store than a super market. This type of store was created to compete with 7eleven who is the market leader in this store size with the most branches throughout Thailand. This type of store is usually placed within a community area and mostly carry foods and drinks. Plus shopping malls is also a full sized hypermarket but Tesco Lotus Wissut Prutisart, ID: 5249252 Tesco Distribution Center (Act as Tesco Mfg) ocuses more on the rental space within their mall. They want to create a shopping mall atmosphere with clothes shops, restaurants, cafe etc with a full sized supermarket. The last type of the store is the community mall, the concept is similar to villa market but the stores are placed closely to community household. The objectives for Tesco Lotus for having many types of store are to serve the right products at the right price and place for consumers in those demographic areas that the stores are in. This is more bene? ial to both customers and to Tesco Lotus, as Tesco Lotus only carry what their customers in those areas need from their stores and nothing else more than that. It is more ef? cient, less investment cost, lower operation cost for Tesco Lotus too and also providing the maximum coverage of their customers as much as possible. Customers also gain a lot of bene? ts from this also as the stores nearest to their home would have the majority of their daily needs. Marketing Channels Tesco Lotus utilizes both below and above the line advertising. For below the line advertising, they have monthly promotion brochure which are distributed at every stores and also sending them to members? houses, Thairath newspaper ad to highlight their main promotion, their own website to show more information and download lea? et or brochure and lastly their Tesco Lotus Club Card to collect customers data and for doing promotion. For above the line, they advertise on the main TV channels focusing on lower price and the highlight promotion. With this strategy, Tesco Lotus has almost the whole coverage of their target customers already. Private Brand: Tesco Value Tesco Lotus themselves act as a distributor and retailer but they also use backward integration and became a producer to produce their own brand of products called ? Tesco Value?. The Tesco Value brand? s objective is to produce most daily needed products for customers with lower cost than other brands are offering but offer similar level of quality. Tesco will place their own product next to other popular brand products with a very similar packaging. The reason why they do this is so customers will think and compare the cost and bene? of the product they are about to buy, usually if it? s a products that customers use regularly but they do not concern with the brand or have a need for more premium product, customers will tend to buy Tesco value brand products instead. The reason why they produce their own brand is because they have buying power and the economy of sale to produce products at lower price point without having to do marketing campaign to promo te their products, therefore even their price is lower than most brands, they still make pro? t from selling their own products. Recommendation My recommendation for Tesco Lotus is add one more distribution channel, that is the ? online channel?. Tesco already has successfully implemented this system in the UK already. The idea is to fully utilize their website to the maximum potential and provide more convenience for their customers. Customers should be able to look at all the products available from Tesco website and be able to order then Tesco Lotus can deliver their orders to their home. Even though this idea is already implemented in UK but no supermarket in Thailand has successfully executed this idea yet. With a strong coverage in term of branches around the country and strong distribution system, Tesco Lotus should be able to successfully implement this system in Thailand. Wissut Prutisart, ID: 5249252 (Example of the online ordering page from Tesco UK website) To conclude this essay, I believe that Tesco Lotus in Thailand is already doing well in term of distribution and marketing channels, it is up to them to control their cost and therefore this always keep them alert about their cost. Tesco Lotus also needs to do more CRM and Social responsibility to their local customers as they are expanding quickly into every cities in Thailand and therefore there will always be a concerned for a local supermarket and convenience stores business. There was some protest going on in some cities when Tesco was about to expand into, Tesco may need to focus more locally as to what they can give back more to the local society apart from selling OTOP roducts from those cities in Tesco and provide jobs for the local. Second, I believe that by implementing the online order and delivery service, this will create a totally new channel of distribution. Tesco may need to do some initial investment such as buying more Pick up trucks, re-design the website and set up the system but with the expertise Tesco has from the UK, they should be able to implement this idea in Thailand. Wissut Prutisart, ID: 5249252 How to cite Marketing Channels on Tesco Thailand, Papers

Nietzsche vs. Mill free essay sample

This essay discusses how Nietzsche believes slave morality, or Christianity, came to dominate. Additionally, the paper examines weather or not, like Mill in On Liberty, Nietzsche recognizes that there are both advantages and disadvantages to Christianity as a moral doctrine. Furthermore, the paper examines Nietzsches key reasons for believing that God is dead-that Christianity no longer supplies values-to understand how we now face the horizon of the infinite. First, we must examine the morality of the warriors, the master morality. Master morality is entirely pragmatic. The values created by the conquerors, or warriors, were structured to achievement in the present, on this world. This is resulting from achievers, from those with animal strengths, either physical or mental, to get things done on this earth. The warrior does precisely what he or she needs to do in a predatory way, just as the natural world has predatory beings. There is nothing limiting the warrior, no conscience. We will write a custom essay sample on Nietzsche vs. Mill or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Warriors do whatever they want to do, whatever their strength enables them to do. Therefore, they create a system of me morals: What we do is right, so when we conquer you, our values are your values. Thus, master morality speaks of good and bad rather than the Good and Evil of slave morality.