Human Rights, Cultural Integrity and Diversity and Protection of Human Essay

Human Rights, Cultural Integrity and Diversity and Protection of Human Rights and Fundamental Freedoms while countering Terrorism - Essay Example Not only the government but the non-governmental organizations are playing a prominent role in this context. According to the Latest Poverty reduction strategy paper about 70% of Zambia’s population live below the poverty line which results in harmful consequences for human rights. There is a lack of awareness in the people of Zambia which poses a negative impact in this regard. Though it is a stable county in many aspects, poverty and unemployment and governmental corruption are the key issues which act as a hindrance to the economic and social development of Zambia. Human rights problems include an unlawful killing; torture, beatings, and abuse of suspects and detainees by security forces; official impunity; life-threatening prison conditions; arbitrary arrests and prolonged pretrial detention; long trial delays; arbitrary interference with privacy; restrictions on freedom of speech, press, assembly, and association; government corruption; violence and discrimination against women; child abuse; trafficking in persons; discrimination based on sexual orientation and against persons with disabilities; restrictions on labor rights; forced labor; and child labor. Zambia is a member of United Nations and the African union and adheres to the commitments made in these universal human rights documents. The inhabitants of Zambia can turn to the UN Human Rights Committee through procedure 1503 to the special representatives in order to combat any kind of violation of specific human rights. ECOSOC is particularly focusing on the women rights violation. Zam bia is also a member of the following organizations including UNESCO, ILO procedure, African Commission on Human and People’s Rights, International Criminal court. Some major roots of human rights violation in Zambia are discussed below: The physical abuse of men, women and children who are in police custody face the worst forms of brutality and torture .The Zambian police

Adoption Of ICT In The Tourism And Hospitality Industry Essay Example for Free

Adoption Of ICT In The Tourism And Hospitality Industry Essay Abstract Information Communication Technologies (ICTs) have revolutionised the travel industry in the last decade. eTourism reflects the digitalisation of all processes and value chains in the tourism, travel, hospitality and catering industries. It emerges as a term describing the entire range of applications of ICTs on tourism and the implications for the tourism value chain. Major opportunities and challenges have emerged and need to be addressed by all industry players. However, the level of eTourism developments varies between regions, countries and continents. The tourism sector is experiencing an acceptance of ecommerce to the extend that the whole industry structure is changing .The web is used not only for information gathering but also for ordering services .A new type of user is emerging one who acts as his or her own travel agent and build a personalised travel package .This research focuses on evaluating the current status of Meikles Hotel Zimbabwe in order to study the adoption of ecommerce applications on the hospitality sector. 1. Introduction Mathieson and Wall (1982) created a good working definition of tourism as the temporary movement of people to destinations outside their normal places of work and residence, the activities undertaken during their stay in those destinations, and the facilities created to cater to their needs. The tourism industry requires a diverse range of information and lends itself well to the support offered by developing multimedia, communication technologies and information systems .The internet provides an extra ordinary connectivity and the ability to communicate efficiently and effectively directly with customers at a reasonable cost .Its potential to generate more revenue is not questionable but is acknowledged as something the tourism industry in developing countries needs. According to the World Tourism Organization 2002, Tourism in many developing and least developed countries is the most viable and sustainable economic development option, and in some countries, the main source of foreig n exchange earnings. Implications of the Internet and other growing interactive multimedia platforms for tourism promotion are far reaching and alter the structure of the industry. This research aimed to explore the impact of ICTs and the  Internet in particular for the future competitiveness of the tourism and hospitality industry. This paper explores the current state of eTourism development and examines the use of the Internet in the sector. The rapid development and commercialization of Information and Communication Technologies (ICTs) for the travel and tourism industry has prompted hotels and other enterprises in this sector to increasingly adopt these technologies. This is based on the expectation that the new ICT based technologies and processes would lead to an improvement in their operating efficiencies and customer service levels. Buhalis, D. (2003: 77). The ICT based products and processes help the hotels to enhance the operating efficiency, improve the service experience as well as provide a means to access markets on a global basis. Brussels, 2005. Says ‘The use of ICTs is a relevant opportunity for growing and strengthening a local tourism industry, and for the development of destinations economies overall. Specifically ICTs have the potential to increase destination incomes for financing economic and social development’. While ICTs were used in the hotel industry from the late seventies in the f orm of Computerized Reservation systems and Global distribution systems, it was only in the 90s that the ICTs began to make a difference in the hospitality sector. Nowadays the internet has turned into an informative channel providing both individuals and organisations with different types of information making them aware of new tourism and old travel opportunities and offers enabling them to compare the offers, have online purchases and provide feedback. It has also turned into a source for travel agencies and organisations to promote their services and products to their potential customers. As the internet is being used worldwide it was important for Meikles hotel to implement hence the creation of its web site www.meikles.com Meikles Hotel Meikles Hotel is situated in the heart of Harare and overlooks the historic landmark and colourful flower gardens of Africa Unity Square. According to Experience Zimbabwe, Meikles is consistently voted as one of the best hotels in Zimbabwe, Meikles Hotel is a proud member of The Leading Hotels of the World, a prestigious hospitality organisation which represents some of the worlds most acclaimed hotels, spas and resorts. Established in 1928, the organisation exists to meet the needs of discerning travellers and for a  hotel to be recognised by this body, it needs to exceed every expectation and achieve exacting standards of excellence. Executive chairman Mr Onias Makamba says ‘Meikles Hotel has won the prestigious Association of Zimbabwean Travel Agents (AZTA) award for Best City Hotel in Zimbabwe for an astonishing 15 consecutive years’. This award is voted on by AZTA members and is based on feedback given to travel agents by their many clients across the world. Probl em Definition There have been a lot of changes in the rapid growing world of technology. Changes in the technological world have made organizations to change the way they conduct their day to day business in order to provide satisfactory services delivery. Effective delivery of service is defined by Martin (2004) as providing products and services that bring utility to users and customers. E-tourism is offering significant benefits for organizations that integrate the technology into their organizational information systems. This versatile technology improves information quality and accessibility, increases operational efficiency (service delivery) and enhances effective management (Maamar, 2006). Despite these highly perceived benefits of e-tourism its adoption has been relatively slow in Zimbabwe. Currently, there are no studies which have been carried out in Zimbabwe to identify the benefits and challenges of adopting ICT in the tourism and hospitality industry. Hence it is the ideal time to ca rry out an investigation on the adoption of ICT in the tourism and hospitality industry. Objectives The key objective of this research has been to examine the Adoption of ICT in the tourism industry mainly looking at Meikles Hotel in Zimbabwe .In particular the research examines the level of ICT diffusion in tourism enterprises. Another objective is to Identify the factors affecting E-tourism in Zimbabwe The paper also assesses how eTourism concepts and techniques can contribute towards the improvement of the Zimbabwe tourism competitiveness. RESEARCH QUESTIONS I. At what rate is ICT being adopted in the tourism and hospitality industry in Zimbabwe? II. What factors are encouraging or discouraging the adoption of ICT in the tourism and hospitality industry of Zimbabwe. 2. Literature  review Literature review is a â€Å"systematic, explicit and reproducible method for identifying, evaluating and interpreting the existing body of recorded work produced by other scholars† (Khan, 2008, p.41). The literature review focuses on the impacts of ICTs on tourism and the eCommerce developments in Zimbabwe. It also includes a brief section on Tourism in Zimbabwe which provides the contextual environment that determines the requirements for eTourism in the country. 2.1 ICT Developments and eCommerce in Zimbabwe There are various factors that have affected the adoption of ecommerce in Zimbabwe, these include : Software development tools are still evolving .It is difficult to integrate Internet and e-commerce software with some existing (especially legacy) applications and databases .Special web servers are needed in addition to the network servers, which add to the cost of ecommerce. The Standard June 5, 2011 says the adoption of the multiple currency system in 2009 presented a strong opportunity for the growth of e-commerce in Zimbabwe. It said Zimbabwe now had a chance to catch up with the rest of the world if the financial and retail sectors took the lead. Internet accessibility is still expensive and or inconvenient .Powertel Communications, a government owned internet provider, is one of the 12 POTRAZ licensed Internet Access Providers in Zimbabwe. In June 2014 Powertel mobile broadband price were $50/month .The price of the modem $45.Every Zimbabwean cannot afford these prices. The Fin ancial Gazette 3 Oct 2013 states Despite the growth of the Information Communication Technology (ICT) sector in the country, which has seen internet penetration rising from five to 47 percent in the past five years, the cost of accessing the internet still remains high. The improved internet penetration is largely credited to the ICT Strategic Plan crafted by the then ministry of ICT under Nelson Chamisa. Customers’ attitudes towards online shopping remain skeptical, mainly because of worries about product quality, product delivery, and security and privacy issues (Ghazali et al., 2006; Scott Scott, 2008). People do not yet  sufficiently trust paperless, faceless transactions .Payment security and privacy concerns are one of the major non technological barriers that prevent consumers from completing transactions online Lack of trust in e-commerce and in unknown sellers hinders buying. Online fraud is also increasing. Some customers like to feel and touch products. They are afraid that if they purchase without actually touching the products they might not get exactly what they ordered. Also, customers are resistant to the change from shopping at a brick-and-mortar store to a virtual store. The lack of stand ­ards in technology and its applications eventually increases the cost of system integration for effective and efficient management in distribution, operation and communication worldwide. Large hospitality corporations have invested to transform their systems into a total netware system; however, small and medium-sized tourism enterprises (SMEs) struggle to integrate the systems due to a shortage of financial sources Factors Determining the Adoption of ICTs In Zimbabwean Hotels There are a number of factors that affect the adoption of ICT in hotels these will be discussed below. In the hotel industry, the geographic location of a hotel has a major impact on its operations and profitability. The geographical location of a hotel would greatly determine the profile of its visitors, the size of its market and the level of competition that it has to face. A hotel will therefore be more inclined to adopt ICTs if it expects the ICT based facilities to either provide greater competitive advantage or to blunt the advantage enjoyed by its competitors considering the characteristics of its customer profile, its market size and the intensity of competition that it has to face. Thus based on the profile of a hotel’s visitors, the size of the market, or the intensity of competition, hotels may differ in their levels of ICT adoption propensity. The market size, in terms of the number of tourists who visit the location, will also be a significant factor that affects ICT adoption , since hotels  in smaller underdeveloped destinations may need to use the internet and other ICT based technologies to a greater degree to reach out to the global population than hotels located in developed destinations. According to Bajaj and Nag (2005) a range of advanced ICT systems such as Decision Support System (DSS) can be applied to gain substantial benefits on practical levels not only by large organisations, but also by small and medium-sized business organisations as well. Bajaj and Nag (2005) argue that DSS integration by small and medium-sized organisations can assist management by generating a set of alternative solution options to management problems of various levels complexities The competition level among the hotels in a location, can also influence the adoption of ICTs. The general occupancy rate in the location is an indicator of the competitive intensity among the hotels in a location. High levels of occupancy rate at a location imply that the competition is low, and the hotels can expect to get their rooms filled with relative ease while low levels of occupancy point towards higher levels of competition to attract customers between the hotels in the location. High levels of competition may prompt the hotels to aggressively use ICT based technologies both for attracting customers as well as to increase the efficiency of its operations. The size of the hotel has an important effect on ICT adoption. Effective adoption of several ICT technologies requires a substantial investment of resources. Lack of resources may affect the inclination of small hotels to adopt costly ICTs and therefore large hotels can be expected to be more inclined to ICTs. Further the risky nature of investing in new technologies may prompt small hotels to wait till the technology has stabilized before investing in it. Another aspect of the hotel size that can influence adoption of ICTs is the inclination to change within the organization. Large hotels have been found to be more resistant to change than small firms. This fact tends to suggest that large hotels are less inclined to adopt ICTs than small hotels as long as the investment required is not a consideration. The scope of activities that the hotel is engaged in can also influence adoption of ICTs. Since ICTs enable an effective integration of activities of an organization, hotels with varied lines of activities would find more use in the adoption of ICTs than hotels with a relatively lesser span of activities. 2.2 Information and Communication Technologies (ICTs) in the Tourism sector The internet has become a key application in the tourism industry. Tourism providers have been using the internet to communicate, distribute and market their products to potential customers worldwide in a cost- and time-efficient way. In fact, the individual company website had become the most important platform for e-commerce, followed by electronic markets. The main focus of e-business processes in the tourism industry has been on customer facing activities and services, i.e. primarily e-marketing and e-sales. Online booking and reservation services were widely accepted among consumers and business travell ers already in 2005. Similarly, online purchasing had become a relatively well-used application in the tourism sector. Parsons and Oja (2013) mention online reservations systems as one of the greatest impacts of ICT on tourism and hospitality sector. Tourism has closely been connected to progress of ICTs for over 30 years. The establishments of the Computer Reservation Systems (CRSs) in the 1970s, Global Distribution Systems (GDSs) in the late 1980s and the Internet in the late 1990s have transformed operational and strate ­gic practices dramatically in tourism .The tourism indus ­try at first focused on utilizing computerized systems (e.g., CRS, GDS) to increase efficiency in processing of internal information and managing distribution. Nowadays, the Internet and ICTs are relevant on all operative, structural, strategic and marketing levels to facilitate global interaction among suppliers, intermediaries and consumers around the world. In this section, we will provide the concepts and definitions of the key terms related to the Internet and ICTs. 2.2.1 Electronic tourism (e-tourism) It is the application of ICTs on the tourism industry (Buhalis, 2003). Buhalis (2003) suggests that e-tourism reflects the digitisation of all processes and value chains in the tourism, travel, hospitality and catering industries. At the tactical level, it includes e-com ­merce and applies ICTs for maximising the efficiency and effectiveness of the tourism  organi ­sation. At the strategic level, e-tourism revolutionises all business processes, the entire value chain as well as the strategic relationships of tourism organisations with all their stakeholders. E-tourism determines the competitiveness of the organisation by taking advantage of intranets for reorganising internal processes, extranets for developing transactions with trusted partners and the Internet for interacting with all its stakeholders and customers. The e-tourism concept includes all business functions (i.e., e-commerce, e-marketing, e-finance and e-accounting, eHRM, e-procurement, e-production) as well as e-strategy, e-planning and e-management for all sectors of the tourism industry, including tourism, travel, transport, leisure, hospitality, principals, intermediaries and public sector organisations. Hence, e-tourism bundles together three distinctive disciplines: business management, information systems and management, and tourism. II.2.2 Computer reservation system (CRS) The 1989 CRS Regulation51 defined a computerized reservation system as a system for reserving and booking seats on commercial flights electronically, as well as storage and retrieval of itineraries. Several airlines own and market such systems, which are used by travel agents. A few include: Sabre (produced by American Airlines), Amadeus, and Worldspan. It is a database which enables a tourism organisation to manage its inventory and make it accessible to its partners. Principals utilise CRSs to manage their inventory and distribute their capacity as well as to manage the drastic expansion of global tourism. CRSs often charge competitive commission rates while enabling flexible pricing and capacity alterations, to adjust supply to demand fluctuations. Airlines pioneered this technology, although hotel chains and tour operators followed by developing centralised reservation systems. CRSs can be characterised as the â€Å"circulation system† of the tourism product. II.2.3 Global distribution systems (GDSs) The business dictionary defines a global distribution system as a worldwide computerized reservation network used as a single point of access for reserving airline seats, hotel rooms, rental cars, and other travel related  items by travel agents, online reservation sites, and large corporations. The premier global distribution systems are Amadeus, Galileo, Sabre, and Worldspan. They are owned and operated as joint ventures by major airlines, car rental companies, and hotel groups. Also called automated reservation system (ARS) or computerized reservation system (CRS).Since the mid 1980s, airline CRSs developed into GDSs by gradually expanding their geographical coverage as well as by integrating both horizontally, with other airline systems, and vertically by incorporating the entire range of principals, such as accommodation, car rentals, train and ferry ticketing, entertainment and other provisions. In the early 1990s, GDSs emerged as the major driver of ICTs, as well as the back bone of the tourism industry and the single most important facilitator of ICTs globalisation (Sheldon, 1993). In essence, GDSs matured from their original development as airline CRSs to travel supermar ­kets. Since the late 1990s GDSs have emerged as business in their own right, specialising in travel distribution. 2.2.4 Intermediaries Intermediaries (brokers) play an important role in commerce by providing value-added activities and services to buyers and sellers. The most well-known intermediaries in the physical world are wholesalers and retailers. Traditionally, intermediaries of the travel industry have been outbound and inbound travel agencies and tour operators. However, the Internet restructured the entire touristic value chain, forcing the existing intermediaries to take up the new medium and to develop corresponding business models. 2.2.5 e-Travel agencies ICTs are irreplaceable tools for travel agencies as they provide information and reservation facilities and support the intermediation between consumers and principals. Andreas Papatheodorou – (2006) Travel agencies operate various reservation systems, which mainly enable them to check availability and make reservations for tourism products. Until recently GDSs have been critical for business travel agencies to access information and make reservations on scheduled airlines, hotel chains, car rentals and a variety of ancillary services. GDSs help construct complicated itineraries, while  they provide up-to-date schedules, prices and availability information, as well as an effective reservation method. In addition, they offered internal management modules integrating the â€Å"back office† (accounting, commission monitor, personnel) and â€Å"front office† (customers’ history, itinerary construction, ticketing and communication with suppliers). Multiple tr avel agencies in particular experience more benefits by achieving better coordination and control between their remote branches and headquarters. Transactions can provide invaluable data for financial and operational control as well as for marketing research, which can analyze the market fluc ­tuations and improve tactical decisions Hotels use ICTs in order to improve their operations, manage their inventory and maximise their profitability. Their systems facilitate both in-house management and distribution through electronic media. ‘Property management systems (PMSs)’ coordinate front office, sales, planning and operational functions by administrating reservations and managing the hotel inventory. Moreover, PMSs integrate the â€Å"back† and â€Å"front† of the house management and improve general administration functions such as accounting and finance; marketing research and planning; forecasting and yield management; payroll and personnel; and purchasing. Understandably, hotel chains gain more benefits from PMSs, as they can introduce a unified system for planning, budgeting and controlling and coordinating their properties centrally. Hotels also utilise ICTs and the Internet extensively for their distribution and marketing func ­tions. Global presence is essential in order to enable both individual customers and the travel trade to access accurate information on availability and to provide easy, efficient, inexpensive and reliable ways of making and confirming reservations. Although Central Reservation Offices (CROs) introduced central reservations in the 1970s, it was not until the expansion of airline CRSs and the recent ICT developments that forced hotels to develop hotel CRSs in order to expand their distribution, improve efficiency, facilitate control, empower yield management, reduce labour costs and enable rapid response time to both customers and management re ­quests. Following the development of hotel CRSs by most chains, the issue of interconnectivity with other CRSs and the Internet emerged.This reduces both set-up and reservation costs, whilst facilitates res ­ervations through several distribution channels 2.3 Tourism in Zimbabwe In the past, tourism contributed significantly to the GDP of Zimbabwe, and created many employment and business opportunities for locals in the 1990s. But it has faced a great decline since 2000. A number of Zimbabwean tourist attractions are marketed online by South African companies and they have created an impression to some international tourists that they are located in South Africa. E-tourism has always seemed like a no-brainer for Zimbabwe, as money can be paid direct to hotels and suppliers. But obstacles like the lack of access to communication in remote areas, uncertain electricity availability, high cost of bandwidth, the lack of integrated, real-time reservation systems and local online payment gateways have thus far stymied progress. However, with the arrival of voice and data-oriented telecommunications in some remote tourist areas, there is more access to information via websites by foreign tourists looking for a good holiday resort. In other parts of Africa, arrival o f cheaper bandwidth has lessened the barriers to communication and the world’s Online Travel Agencies like Expedia are showing a real interest in the continent. Ten years ago no-one was talking about online tourism. The tourism trade tended to focus on going to big trade events like World Tourism Markets, with brochures and doing support advertising in key markets. The travel agents tended to suggest where people went and to some extent picked the destinations. As a result, a great deal of the revenues went to large, international hotel chains and not much of the money was retained locally. According to The Zimbabwean (22 June 2011) 56% of travel globally is booked online and the rise of the Online Travel Agents has been unstoppable. These OTAs, as they are known in the trade, include Expedia, Travelocity, Lastminute.com and Bookings.com who have significant market share in Africa. Expedia has actually opened an office to focus on Africa. It goes on to say In 2005, less than 2% of tourism revenues in Africa came from online booking. In 2010, buoyed by the World Cup, that percentage rose to 5% and looks set to go to somewhere between 15-20% by 2016. The World Cup may have been a one-off boost but it accelerated the growth of online tourism in South Africa. 50% of Americans read an online review before booking internationally and that’s usually  either Trip Advisor or Facebook. (Trip Advisor is now owned by Expedia). Most internatio nal travellers have credit cards and increasingly expect to be able to book online for anything from the smallest travel lodge to the largest hotel chain. So what are the barriers? The missing piece was e-commerce. There used to be no route for doing online transactions in other countries in Africa including Zimbabwe. Online distribution by the OTAs requires a reservation system that offers real-time availability. OTAs won’t do business with you unless you have that. In Zimbabwe there are few tourist resorts offering e-commerce reservation and booking services. Shearwater Adventures in Victoria Falls offer online booking and payment services, which have attracted a large number of tourists over the years. The second missing piece was the ability and tools to do online marketing. The companies needed marketing skills, especially with social media. Today’s tourist wants to hear from other travellers (through Facebook and Trip Advisor) and are not that interested in what the hotel has to say. For example, hotel chains Africa Sun and Cresta Hotels have invested in websites and Facebook groups where reviews are easily accessible to prospective tourists. Now that the data oriented communication and cheaper bandwidth is slowly becoming available throughout the country, telcos and ISPs need to focus specifically on those industry sectors that are most likely to make the online transition fastest. It must be possible in the near future for a herita ge site in Binga to be marketed online to the world and attract visitors. 3. Research Methodology To fulfil the objectives of this research a number of methods were used. Both primary and secondary data were therefore essential. Given the dynamic nature of the subject area, multiple primary research approaches were adopted, including both qualitative and quantitative methods (Phillip, 1998). Bryman (1998) explains that the two methods are complementary rather than competing, especially for exploratory research. The researcher made use of the internet and some library books to carry out the research and establish the solutions to the research objectives .First a qualitative approach was adopted in order to enable the appreciation of all aspects of the subject and to develop a set of the most critical variables  to be included afterwards into a questionnaire. The main objective was to objectively establish the level of eCommerce and the on-line representation of Zimbabwean tourism. The second stage involved semi-structured interviews aimed to elicit critical issues and to explore the key factors that determine the development of eTourism in Zimbabwe. In-depth interviews are considered as the most appropriate method to obtain information about perceptions, attitudes and beliefs. Judgmental sampling was employed and interviewees were selected as pioneers in eTourism in Zimbabwe, as determined by their online presence assessed in the previous phase of the research. Owners and marketing managers of organisations that run innovative web sites, as demonstrated by the methods used to interact with their clientele, were targeted and an interview was requested. The sample was chosen to include interviewees who would be informed, reflecting their particular experience and outlook on the research area. Twenty five telephone contacts were made and 28 interviews were finally conducted, which resulted in a 51% response rate .The reasearcher also made use of the questionnaires. The questionnaires designed by the researcher had both open ended questions thus allowing a respondent to fully express the answer and closed questions which only provided simple choice of answer such as yes or no. Questionnaires were used by the researcher because they saved time and they were an inexpensive way of surveying a cross section of people. Questionnaires allowed the researcher to guide the respondent along the lines regarding the topic under study and responses obtained from closed ended questions are easy to analyze. Questionnaires allowed the respondents to give freely the confidential information since the respondents were not required to disclose their identity. The researcher favoured the use of questionnaires because the analysis of data from close-ended question was easy. However data collection through the use of questionnaires required a significant commitment, expertise, time and material resources. The researcher also noted that questionnaires were highly inflexible as they gave no room to rephrase questions, furthermore, some questions remained unanswered and it affected the research findings. The researcher used simple wording in the questionnaires so that the respondents would not fail to understand the questions, that is, the researcher used simple wording to elaborate the meanings of what was being asked and required. The researcher also used face to face interviews. The researcher employed structured interviews to obtain detailed and specific information from the Minister of Tourism and Hospitality Mr Mzembi. The questions presented to the Minister sought to determine the factors affecting adoption of ICTs in Zimbabwean hotel and also how far Zimbabwean hotels are in terms of adoption of ICTs. The interview also sought to discover challenges to implementing ICTs and compliance at different hotels. The interview process proved time consuming and required persistence since the honourable Minister was a busy person and he was not easily available. The actual interview session had a length of 15 minutes due to the Minister’s busy schedule. To avoid inconveniences, an appointment via e-mail and telephone call prior to interviewing visit was made. Goodman (2003) states that certain biases exist due to the tendency by the interviewer to ask wrong questions and be supplied with answers he expects to get. The researcher eliminated such errors by avoiding leading questions and taking a listener approach instead of providing suggestions. Probing was only applied as a means of seeking clarifications. This technique was used because interviews are highly flexible and the researcher was able to rephrase the questions to make the respondent understand better. Dennis (2003), states that an interview is whereby the researcher and the respondents discuss verbally with each other either face to face, over the phone or over the internet. Interviews allow probing on open ended questions, clarifications on ambiguous questions and sequencing of questions is easily changed. However, the researcher noted that interviews were costly to run in terms of money and they are time consuming because the interviewee was a busy person hence the need of an appointment and the need of a telephone call reminding the interviewee about the appointment before the  time. The researcher also noted that the interview failed to give anonymity to the respondent, hence, there was a greater chance of being given biased information. RESULTS Eight hotels participated in the survey Meikles hotel, Holiday inn (Bulawayo), Victoria falls, Regency Fairmile, Kadoma hotel, Midlands hotel. At the outset the author quotes from a number of previous reports, which indicate that ICT has not been implemented effectively in the hospitality industry Evidence from the literature review has shown that there are a number of factors, which affect technology adoption. These factors include organisational readiness, external pressure, internal expertise, support of owner or manager, user participation, efficient and effective use of any external expertise. The barriers which were uncovered by the research: IT management training, dependency on outside experts and size and scale of enterprise are all directly related to the ‘other’ factors which influence ICT adoption. The level of significance of these barriers varies between the tourism sub-sectors surveyed. This study has added new knowledge in terms of the significance of a n umber of further barriers to ICT adoption. They include peripheral or rural location, security concerns, cost issues, lack of capital, and personal background of the owner manager. A closer analysis of findings has revealed that although technology is available, some of it is obsolete or not necessarily functional. Hotels possessed various outdated versions of software packages which did not seem to serve them well. . The mode of Internet bookings is an important determinant of their success. A lot of Internet booking systems generates a booking in email format rather than integrating into the hotel’s reservation system online. This obviously limits the usefulness of these systems. DISCUSSION The adoption of ICTs at Meikles Hotel is proving to be growing fast; this was noted by the stakeholder preparedness to harness it. Meikles hotel being a  five star hotel recognised internationally, this pushes them to move along with technological changes. Meikles hotel is interested in improving in their service provision through the use of e-commerce, and the results of this study show that this is being done at a fast pace. The top management at Meikles hotel are quite literate hence the adoption of ICT is faster compared to other hotels .The C.E.O is a holder of an honours degree in Computer science .Although the use of ICTs has not yet revolutionalised Meikles Hotel’s service delivery; it has changed how some services such as bookings are being done. Meikles hotel has a website developed and maintained by an inhouse programmer .Their website is user friendly and they have all the information that one needs about the hotel. Meikles hotel started offering wireless network services to guest in 2006.They use Fidelio management system which integrates all the information from the reservations, banqueting, finance departments and the restaurants. They use point of sale systems. CONCLUSION It can be noted that the adoption of ICTs at Meikles Hotel is proving to be growing fast and it has been done to a very large extent. Although the use of ICTs has not yet revolutionalised Meikles Hotel’s service delivery; it has changed how some services such as bookings are being done. References Buhalis, D (1998), â€Å"Strategic Use of Information Technologies in the Tourism Industry†, Tourism Management, Vol.19, pp.409-421. Connolly D. J and Olsen M. D(2000) â€Å"An Environmental Assessment of How Technology is reshaping the Hospitality Sector†, Tourism and Hospitality Research, Vol.3 (1), pp.73 to93. Cooper, C., Fletcher, J., Gilbert, D and Wanhill, S (1998) Tourism Principles and Practice, Pearson, Essex. Hoontrakul and Sahadev (2005*) â€Å"Determinants of E-commerce Usage in the Hotel Buhalis, D. (1997) Information technologies as a strategic tool for economic, cultural and environmental benefits enhancement of tourism at destination regions. Progress in Tourism and Hospitality Research, 3 (1), 71-93. Buhalis, D. (2003). eTourism: Information Technology for Strategic Tourism Management. London, UK: Pearson (Financial Times/Prentice Hall). Morrison, A., Taylor, S., Morrison, A., and Morrison, A. (1999) Marketing small hotels on the world web 2 (2), 97–113. O’Connor, P. (2000) Using Computers in Hospitality, 2nd edition. London: Cassell. Peacock, M. (1995) Information Technology in Hospitality. London: Cassell. O’Connor, P. and Frew, A. (2000) Evaluating electronic channels of distribution in the hotel sector: a Delphi study. Information Technology and Tourism, 3 (3/4), 177–193. O’Connor, P. and Horan, P. (1999) An analysis of web reservations facilities in the top 50 international hotel chains. International Journal of Hospitality Information Technology, 1 (1), 77–87.

Observation of a Day Labor Site :: Immigration Labor Essays Papers

Observation of a Day Labor Site The focus of this case study was to observe the new Phoenix day labor site also named â€Å"Macehualli†. This name came from the Aztec language. This site opened on Saturday February first 2003. We visited this site on April 29th 2003 at approximately 8:15 a.m. until around 9:45 a.m. Our goal was to talk with the key people involved in the day labor project. We inquired about this programs working status. Is this program benefiting the people who come here looking for work? We choose this site because of the interest in immigration by the U.S. and how do these immigrants find work in the United States. Our goal is to find out how this pilot program is working, how it is run and has it been successful so far. This study relates to the theme of 0ur migration and culture class because it is all about how people from Mexico migrate to the U.S. and how difficult it can be finding work in the states. The area that this day labor site is in was not what we expected. It is in the North Central area of Phoenix. When driving East on Bell road and turning South on 25th street you pass an area with chain linked fence. We were expecting a building with parking, offices with a lobby area for the workers to sit, indoor restrooms and air conditioning. To our surprise there were no buildings only picnic benches with green tarps above them. Portable outhouses were provided but no misting systems to keep the workers cool during the unbearable summer heat. There was no formal office, just a notebook and containers with lottery tickets in them for the workers to register in. A circular driveway served as a pick up area. Yet these men organized themselves with a system that was working and would find way to entertain themselves by playing the guitar and visiting among themselves. They provided coffee, water and snacks by way of donations that each worker would put into a container on a volunteer basis. Day labor hours are Monday thru Saturday from 5:00 a.m. until around 2:00 p.m. The busier months are April until around October with December and January being the slowest months. On average there are around 175 people looking for work here at the Day Labor Center.

Knowledge Discovery in Databases: An Overview Essay -- Data Mining

Knowledge Discovery in Databases: An Overview Abstract In the past, the term Data Mining was, and still is, used to designate the activity of pulling useful information from databases. Now, this term is recognized to apply but to one activity in a very large process to extract knowledge from opaque databases. The overall process is known as Knowledge Discovery in Databases, (KDD). This process is comprised of many subprocesses which when linked together provide a firm foundation for knowledge acquisition from large databases. Many tools, techniques, and disciplines come together under the umbrella of KDD. Introduction Today, the topic of data mining has much interest in government, business, and research circles. With the growth of computer use within these areas has also come a greater desire to let the computers do the work that used to be done by humans. The problem, nowadays, is that the data that needs to be analyzed has become too large and cumbersome for one person or even teams of people to envision tackling without help from computers. These computers are no longer mere crunchers of numbers but now they find the patterns that the humans used to find. From this growth has arisen a vast body of knowledge concerned with this process of data analysis. As with much other information, the Internet is employed to make available the ever-growing body of information on this topic. Many general sources of information [a,b,c] are now online. These are updated and expanded upon almost a constant basis. The use of the Internet to disseminate and collect information is itself a consideration in this fi eld. The amount of information is expanding at such a rate that old methods of information disposal, such as paper journals and b... ...11) R. Lippman, "An Introduction to Computing with Neural Networks", IEEE ASSP Magazine: 4:2 (1987), pp.4-22. 12) C. Murphy, G. Koehler & H. Fogler, "Artifical Stupidity", The Journal of Portfolio Management: 23:2 (Winter 1997) pp.24-29. 13) J. Quinlan, "Induction of Decision Trees", Machine Learning: 1:1 (1986), pp.81-106. Hyperlinks a) http://www.cs.bham.ac.uk/~anp/TheDataMine.html b) http://www.gmd.de/ml-archive c) http://info.gte.com/~kdd/ d) http://info.gte.com/~kdd/corporate.html e) http://info.gte.com/~kdd/datasets.html f) http://info.gte.com/~kdd/siftware.html g) http://www.almaden.ibm.com/stss/ h) http://www.research.microsoft.com/research/datamine/ i) http://www-aig.jpl.nasa.gov/kdd95/ j) http://www-aig.jpl.nasa.gov/kdd96/ k) http://www.neuronet.ph.kcl.ac.uk/ l) http://www.ics.uci.edu/AI/ML/Machine-Learning.html

Mandating Writing Courses Essay

Writing is slowly becoming a lost art.   With modern technology, the writing process has become simpler; sometimes words are even completed and corrected by word processing programs for the writer.   Gone are the days of looking through dictionaries to find spellings and meanings of words. Writing is becoming shorter and more abbreviated, and many feel that since technology is cheapening our language, that college writing courses are not necessary.   They are mistaken.   College writing courses such as English 103 and 104 provide an opportunity to learn the skills that are taught through writing.   These very valuable, transferrable, and necessary skills for life and career are organization, research, and persuasion.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Organization is a skill that is reinforced through writing courses, specifically courses like English 103 and 104 that force the writer to think critically about the timing of his or her argument and placement of fact.   Organization is a valuable skill to grasp for both life and career.   Organization aids in the ability to provide directions or information to other people. It also is essential when speaking in front of people in order that they can follow what is being said. An organized speaker or writer can communicate more effectively, and communication is paramount in both life and career in order to be successful.   Writing classes force students to practice being prepared and to put time and effort into their work.   These are skills students cannot succeed in other classes without.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   English 103 and 104 offer also opportunities to learn to research correctly and effectively.   Research is a necessary skill for college as well as in life and career.   It enhances learning and teaches students where to look for information.   It also teaches students how to be responsible for their own learning, which will carry over into their careers as they become responsible for their own jobs. In life, researching skills allow people to take control of their own spending habits and have more consumer power through the ability to have product knowledge and healthy living information available to them.   Research also teaches time management skills and enhances reading exposure to different media.   Research is an essential tool not only in school, but in life and career.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Perhaps the most valuable skill taught in writing classes such as English 103 and 104 is that of persuasion.   Once a student can organize and research effectively, he or she can present a credible and believable argument or persuasive talk or work not only in school, but in real life.   Persuasion is what is used to get a job initially and then to be promoted.   Even relationships require persuasion.   The art of the argument will never die; writing classes are essential in teaching this skill.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   It is sad that as time goes by the English language, a beautiful and complex set of rules and symbols, becomes less important to society.   Colleges and universities should keep the requirements of writing courses such as English 103 and 104 for every student.  Ã‚  Ã‚   Educated people should know how to read and write well as well as posses great organizational skills, researching strategies and effective argumentation abilities.   Writing courses teach these skills.

Time Warner Essay

Time Warner Essay Time Warner Essay Time Warner EssayIn actuality, Time Warner is one of the leading media companies in the US holding a strong position in the publishing and cable television. However, at the moment, the company undergoes considerable changes and restructuring in terms of the development of new effective marketing strategies which can help Time Warner to enhance its competitive position and provide the company with an opportunity to accelerate its business development. At this point, one of the main issues that the company faces at the moment is the merger of Time Warner Cable with Comcast, which opens wider opportunities for the further business development of the company. At the same time, the company attempts to separate its publishing business, which has become unprofitable for the company in recent years and now is one of the major causes of the slowdown of its business development. Therefore, Time Warner undergoes consistent changes aiming at the improvement of its marketing performance through r eorganisation, structural changes, separation and the merger that the company expects to lead Time Warner to the new stage in its business development and help the company to break through in the highly competitive business environment.Recently, Time Warner has announced the merger of its Time Warner Cable with Comcast, the leader of the cable television (Quain, 2). In fact, the deal will involve the sale of Time Warner Cable to Comcast. At this point, it is worth mentioning the fact that, at the moment Time Warner still consist of two major units, the publishing business and cable television unit. Time Warner Cable represents the cable television unit of the company and this unit plans to merge with Comcast. This is an important decision in the business development of the company because it opens new opportunities for the business development of the company after the merger. The merger will involve Comcast, the largest cable television company of the US, and Time Warner Cable, the second largest cable television company in the US (Quain 2). Therefore, their merger will put them in the advantageous position in the US market, while their rivals will hardly be able to reach such a market share as the merged company uniting two behemoths of the industry.In fact, consequences of the merger are apparently very attractive for both Comcast and Time Warner Cable because the new company will have about 70 million subscribers nationwide that is about 30% of the total market share in the US (Quain, 3). The consistent market expansion opens wider opportunities for Time Warner Cable after the merger because the new company will control almost a third of the US cable television market. Therefore, the company can set the pace in the industry, while its further growth and expansion will enhance the position of the new company in the market even more.In such a situation, rivals of the company turn out to be in the absolutely disadvantageous position because not a single rival of the merged company, such as Charter Communications for instance, can even challenge the position of the merged company, while outpacing it is virtually impossible, at least in a short-run perspective. The dominant position of the new company opens wider opportunities for the faster market expansion and taking even a larger share of the market. As a result, Time Warner Cable can make a breakthrough in its business development in the cable television market, in case the merger with Comcast completes successfully. This is why both companies are so interested in the merger because, instead of the fierce rivalry, they can unite their efforts to take not just the lead in the industry but to become the company dominating over the cable television industry.Furthermore, the merger apparently secures the position of the company in the market because rivals will be unable to outpace the company, unless they introduce innovations that will revolutionize the industry. At the moment, there are no such rivals of the company and Time Warner Cable can take the lead after the merger with Comcast. The company can also raise barriers to entry that will decrease the risk of the emergence of new rivals that can potentially threaten to the position in the company and tighten the competition in the industry.On the other hand, the merger may raise the problem of the possible monopolization of the cable television market by the merged company since the company will take the consistently higher share of the market compared to rivals. Moreover, in a long-run perspective the company can increase its market share even more and take dominant or monopolistic position in the market. The monopolization can occur faster, if the company continues the strategy of mergers. However, the monopolization of the market or taking the absolutely dominant position raises the risk of the violation of the anti-trust law and investigation of policies conducted by the company. Therefore, in case of unfair on unreasonable policies of the company, when it takes the dominant position in the market, the company can face the risk of the investigation of its policies under the anti-trust legislation. The company may also face the risk of lawsuits, if its policies will breach existing anti-trust regulations and legal norms. If the company sets unreasonably high price or forces customers to buy extra-products which they do not want to buy, the company is likely to face considerable problems because of the violation of the anti-trust law, as was the case of Microsoft, for instance.However, Time Warner attempts to optimize its performance not only through the merger with Comcast but also through restructuring. For instance, Time Warner Cable spinoff has actually nothing to do with Time Warner since Time Warner Cable has focused on its own development, while Time Warner is a different company now (Flint, 1). Nevertheless, neither company plan to change their name so far, unless the merger agree ment of Time Warner Cable and Comcast may require such a change (Flint, 3). At the same time, the merger is a part of the large scale plan of Time Warner to undergo consistent restructuring. The merger is one of the key elements of the restructuring which allows the company to accelerate its business development through focusing on the cable television market mainly and taking the lead in the market through the merger. This strategy is efficient because Time Warner prioritizes the most profitable part of its business and, more important, enhances its position in the market through the merger.Moreover, Time Warner is also considering the separation of its publishing business, although at the moment, the company is the largest magazine publisher in the US. Nevertheless, the company decided to separate Time Inc. last year (Team, 2). This decision complements the decision of the company to merge Time Warner Cable with Comcast. To put it more precisely, the company refuses from its publi shing business which future may be uncertain for the company and focuses on cable television market entirely. Such a shift maximizes profits and benefits of the company.At this point, it is worth mentioning the fact that the move to separate Time Inc. was, in all probability determined by the steady decline of the publishing business of the company. In such a way, the decision to separate Time Inc. from Time Warner was driven by the attempt of the company to preserve only the most prospective elements of its business and become a pure media company. In fact, this means the separation of Time Inc. from Time Warner is a strategically important step, especially in the light of the upcoming merger with Comcast. When the company has just started the procedure of separation, experts (Team 6) believed the separation was driven by pragmatic concerns of Time Warner and its attempts to save costs and attract investors due the better financial performance of the company free of the publishing business burden. What is meant here is the fact that initially, experts (Team, 6) stood on the ground that Team Warner is just trying to save costs and make its financial performance healthier. The step was quite reasonable in light of the declining publishing business which slowed down the business development of Time Warner.On the other hand, cable television was and still is profitable business for the company. More important, cable television is more attractive market for the company and the business of Time Warner in this market keeps growing (Flint, 5). This is why the refusal from the publishing business of the company allows Time Warner to focus entirely on the cable television market. At the moment, the separation of Time Inc. is not completed so far but the company has already started negotiations on the merger with Comcast and this step reveals the intention of the company to accelerate its business development through the enhancement of its position in the most profitabl e industry. Moreover, unlike publishing business, cable television is likely to keep growing in the future. This is why the company can maximize benefits from the merger and shifting its business to the cable television industry mainly.In such a context, the recent merger of Time Warner Cable is a reasonable step since after the completion of the separation of Time Inc. which is likely to be completed this year, the company will merge its more perspective unit, Time Warner Cable, with Comcast becoming one of the leaders in the industry and enhancing its position in the market. This step is strategically important for the company because it elevates the company to the new level in its business development and helps the company to take the lead in the industry and keep growing in the future since the cable television industry is growing.However the merger with Comcast is driven not only by business concerns but also by the lobbying power of Comcast which can accelerate the further bus iness development of Time Warner Cable after the merger (Shields, 3).At the moment Comcast invests abundantly into lobbying and the company has increased the number of lobbyists in the 2000s consistently. The merger with such a company opens new opportunities for Timer Warner Cable to enhance its marketing position, enter new markets and increase its market share.In such a context, there is no surprise that Charter Communications, another behemoth of the media industry, has failed to negotiate the merger with Time Warner Cable and has lost the deal to Comcast (Fung, 4). Charter Communications does not have such a strong lobby as Comcast and, therefore, cannot offer Time Warner Cable such good prospects for the further business development as Comcast does.On the other hand, the merger of Time Warner Cable and Comcast can raise substantial difficulties in face of both companies because the merger will inevitably involve the restructuring of the new company. Comcast and Time Warner Cab le have their own organizational structure and culture, while the merger will raise the problem of their mutual integration. In such a situation, the risk of conflicts within the new, merged company arises because employees working in the company may be resistant to changes or oppose to changes. As a result, the risk of the failure of the merger arises because if employees of the company resist to the change, the company may face substantial difficulties with the overall successful implementation of the change.Furthermore, the restructuring of the company may raise the problem of job cuts and loss of well-qualified professionals, who, in face of the uncertainty in their future after the merger, may just transfer to another company, where they can be absolutely certain in their future. The loss of well-qualified professionals may also create substantial difficulties which the new company will have to overcome. Therefore, the merger is not always the right choice and, in spite of the obvious certainty of Comcast and Time Warner Cable in the overall success of the merger, there are still some risks and threats which may lead to the failure of the merger. At this point, it is possible to refer to other cases when mergers have failed, such as the case of Daimler-Chrysler which was considered to be one of the most prospective and strong alliances in the automotive industry but eventually ended up into the split of the two companies.Thus, at the moment, Time Warner undergoes substantial changes. The company has initiated the separation of Time Inc. which comprises the publishing business of the company. At the same time, the company is about to merge with Comcast that means the shift of Time Warner from diverse business to the relatively narrow focus of the company on cable television business mainly. In such a situation, the refusal from the publishing business is reasonable to enhance the financial performance of the company. Moreover, the merger with Comcast will allow Time Warner Cable to take the leading position in the cable television industry that keeps growing. Therefore, the company will not only optimize its performance but also become the leader of the fast growing industry that will shift the business development of Time Warner to the new, upper level.

Communism Business essays

Communism Business essays A sudden change in Fidel Castros heart opened a whole new ball game for the economy. He decided to let trade run free between Cuba and the United States. Being a businessman, I quickly jumped on the opportunity. I decided to open up a sporting goods store, which would sell more baseball products than any other article. I purchased land and built a building on it to run my store. I then went out and hired employees, whom were extremely easy to come across, they actually came to me; I didnt have to look for them! I also ordered products from my suppliers in the United States. Business was blooming, I was selling so much products and making all kinds of money. Unfortunately, Castro had changed his mind. He abandoned his recently new decision for free trade. He would not let anything imported or exported, and travel between the countries was abolished. Cuba had turned again, to strictly communism. This would destroy all hopes I had for my business to prosper. Now, I would not be able to get the proper products I need to sell in my store, I could only hope that few farmers could make homemade shirts of decent quality. Also, the Castro government confiscated a vast majority of my profits. He does not care for the general wealth of the people, only for him and his government. He makes all the decisions, what to sell, how to sell, when and where to sell it. All of his decisions arent good ones either, from a business standpoint. Castros practice is the reason for Cuba, and country that could have a solid economy, is doing so poorly. The people do not want to work hard because He will just take all of their earning away. Many people only work for themselves, growing their own crops to eat, without any trading or selling. They trade when they want another persons good, for example: some crops in exchange for clothes. Opening a business in a communist country is next to impossible. ...

Free Essays on Hazing

Hazing In today’s world if a person would want to get on a certain team or join a frat or sorority, that person would have to put up with one big thing, initiation. Or as most call it hazing. There not the only people that put up with hazing though. Hazing is becoming big in high schools, church events, and even professional sports. Since so many people have to put up with the issue of hazing, it has become a very big issue in today’s world. Whether it involves binge drinking, kidnapping, or some type of physical abuse, hazing is becoming an issue that is too common. Since it is becoming so common most people feel that someone needs to step in and stop hazing in all events no matter what it is. Hazing can be defined in many different ways depending on whom you’re talking to. But the actual definition is that it is any activity or situation that has been formed with the intention of causing another person mental or physical pain, embarrassment, or ridicule. Hazing can range from making a person eat ridiculous things, to even have a person take a beating from others. Hazing happens mostly in colleges, but is becoming more common with high schools and other organizations as well. People that want to join a frat or sorority have to deal with this issue on a daily basis, as well as athletes. The idea of hazing is to show how much a certain individual wants to be in a certain club. So since the people at the head of the club can pretty much do what ever they want to a certain individual, they do. They do that because it deals with the universal saying, only the strong survive. Which means the only people that will make it into the club are the ones that do whatever they say. So the heads of the clubs have each person wanting to join do outrageous things because they want to show there power as well as make the person look stupid. But that’s why the heads of these clubs make the statement that it is supposed to g... Free Essays on Hazing Free Essays on Hazing When one hears the word â€Å"hazing,† the typically first impression is that of a fraternity member with a paddle in one hand, beer in another and a young â€Å"pledge† bent over being struck by the wooden paddle. This is defiantly a case of classic hazing, however many other forms have been created and made public in the recent past. Other fields such as military, sorority, high school and athletic teams have begun to come under the same scrutiny fraternities have been for years. For someone who has never been â€Å"hazed† the issue can be quite complicated and some ignorant conclusions may be made. Hazing has different, but yet very similar definitions from various institutions. The first thing I noticed here was that fraternities were the only institution that the American College Dictionary directly addresses. Obviously the FIPG listed above goes into more detail regarding fraternity actions and focus on those activities Hazing is defined by the FIPG (Fraternity Insurance Purchasing Group) as: "Any action taken or situation created, intentionally, whether on or off fraternity premises, to produce mental or physical discomfort, embarrassment, harassment, or ridicule. Such activities may include but are not limited to the following: use of alcohol; paddling in any form; creation of excessive fatigue; physical and psychological shocks; quests, treasure hunts, scavenger hunts, road trips or any other such activities carried on outside or inside of the confines of the chapter house; wearing of public apparel which is conspicuous and not normally in good taste; engaging in public stunts and buffoonery; morally degrading or humiliating games and activities; and any other activities which are not consistent with fraternal law, ritual or policy or the regulations and policies of the educational institution." The American College Dictionary goes on to define the action of â€Å"haze† as: â€Å"1. To persecute or harass with meaningless... Free Essays on Hazing Is It Innocent Team Bonding Or The Abuse and Endangerment of An Athlete’s Rights? Current issues have forced NCAA athletics to deal and confront the dangerous acts of team hazing. On January 14th, the University of Vermont men’s hockey season was forced to a sudden halt. With thirteen games left, the team’s 23 remaining players were read a litany of their sins by the state’s attorney general, William Sorrell. He stated the schools handling of the hazing incident(s) was â€Å"conducted loosely while specific evidence was withheld that lead to a slow indecisive investigation,† which resulted in his intervention (Hoover). Hazing is a long practiced and in many cases long accepted rite of initiation in such cliques as military and college fraternities and athletics. It is a relatively new current issue and needs to be seriously addressed. Last August Alfred (NY) University released a study that included two hundred and twenty four participating institutions that submitted names and addresses of 61,258 student athletes. From the responses, they found that 80% of responding college athletes were subjected to alcohol-related hazing and more than 20% to such other activities. Of the participating institutions, the UVM was not one of them (Hoover). Clearly, UVM and other organizations must be more vigilant. Greater and more effective efforts must be made to know what students are doing, and perhaps more importantly, what and how they are thinking. Team or group bonding experiences that attain the desired results without harassing humiliations and dangers must be developed and promoted. Across societies and time, people have initiated new members into groups through ceremonies and rituals designed to foster a feeling of belonging. Yet, sometimes those activities cross the line into hazing. Hazing, defined by Alfred University, is â€Å"any activity expected of someone joining a group that humiliates, degrades, abuses or en... Free Essays on Hazing Hazing In today’s world if a person would want to get on a certain team or join a frat or sorority, that person would have to put up with one big thing, initiation. Or as most call it hazing. There not the only people that put up with hazing though. Hazing is becoming big in high schools, church events, and even professional sports. Since so many people have to put up with the issue of hazing, it has become a very big issue in today’s world. Whether it involves binge drinking, kidnapping, or some type of physical abuse, hazing is becoming an issue that is too common. Since it is becoming so common most people feel that someone needs to step in and stop hazing in all events no matter what it is. Hazing can be defined in many different ways depending on whom you’re talking to. But the actual definition is that it is any activity or situation that has been formed with the intention of causing another person mental or physical pain, embarrassment, or ridicule. Hazing can range from making a person eat ridiculous things, to even have a person take a beating from others. Hazing happens mostly in colleges, but is becoming more common with high schools and other organizations as well. People that want to join a frat or sorority have to deal with this issue on a daily basis, as well as athletes. The idea of hazing is to show how much a certain individual wants to be in a certain club. So since the people at the head of the club can pretty much do what ever they want to a certain individual, they do. They do that because it deals with the universal saying, only the strong survive. Which means the only people that will make it into the club are the ones that do whatever they say. So the heads of the clubs have each person wanting to join do outrageous things because they want to show there power as well as make the person look stupid. But that’s why the heads of these clubs make the statement that it is supposed to g...

Reason of hotel price changing of Hotel du vin Birmingham Speech or Presentation

Reason of hotel price changing of Hotel du vin Birmingham - Speech or Presentation Example The reasons behind this increase are economic and based on market analysis. First, there is the increasing cost of products production and services delivery globally. This implies that for the last few years, the cost of rooms in major hotels has been increasing. However, despite the expected increase which has been steady over the years, a tremendous increase must have had another reason. As reported in marketingbirmingham.com earlier this year, the tourism industry in Birmingham city has been growing since 2012. This prompted the major hotels to advance their services to meet the expected demand. The development comes with expenses, and the market demand is expected to cover those expenses and make the process profitable. This is the main reason the bookings, as well as the prices of rooms, have increased over the last one month. In addition, market psychology has also played a part in the change. With the increased demand and modernisation of services, the marketers have used the principle of market psychology in which the customers are driven to assume that the most expensive provides the best services. They have therefore increased the prices in a competitive strategy to control the reasoning of the customers in which the economists call reverse psychology of marketing. Further, there has been an increasing need for the hotel industry to embrace technology in products and services delivery. Technology is costly but a major requirement in many industries today. This has prompted the hotel to increase prices, take advantage of the current demand with tourism growth and increasing revenue. Hotel du Vin Birmingham  . http://www.booking.com/hotel/gb/du-vin-birmingham.en-gb.html?aid=311984;label=du-vin-birmingham-WwDjdb06pLcrC70B425p8gS32443427113%3Apl%3Ata%3Ap1%3Ap2%3Aac%3Aap1t1%3Aneg;sid=4ca5973a3f39e1501dee98b8ba487978;dcid=1;ucfs=1;srfid=942ca71d04271f7f8199ebe93a58d025d2b2eabbX1#map_closed Sinha, I. (2006).  Reverse

Two kinds by amy tan summary Essay Example | Topics and Well Written Essays - 250 words

Two kinds by amy tan summary - Essay Example The underlying benefits of these efforts are unclear but the show still goes on. A piano teacher is hired to train the little girl. A whole new direction is taken as more time is wasted. The girl fakes almost everything to do with the training, probably taking advantage of the deaf piano teacher. She is therefore seen making a fortune out of her mother’s blunder. What she does not know is the extent to which her mother is interested in her piano skills. She is signed up for a talent show that brings together Chinese-American community. This is seen as an opportunity to showcase her developing talent in piano. She is faced by a significant audience, and all that can save her is a miracle since the talent show has trapped her. However, all she was set for is shame, to her and her family. A daughter-mother conflict arises and the mother’s concern for her daughter’s talent fades away. Towards the end of the story, the daughter returns with her piano. The piano is fully serviced. Jing-mei’s mother has passed away and her high hopes for the daughter can only be remembered by keeping the piano. She therefore lets the piano act as a representation of her mother’s hopes for

Essay Example | Topics and Well Written Essays - 1000 words - 34

Essay Example This study will focus on one nation, the Iroquois, as a prime example. The Iroquois people, who called themselves Haudenosaunee envisioned their Nation as being one giant family. In truth they created a governing body that was a family of nations. The name, Haudenosaunee, which is used to refer to this Iroquois nation, means literally, "People of the Longhouse." They built long houses that were large structures creating a long hall and became the meeting place for local and distant chieftains and other dignitaries to speak, make laws, give announcements, etc. Some of these structures were hundreds of feet long for meeting of all the nations, while single villages’ were less than fifty feet in length. However, the width and height of longhouses varied only slightly. Haudenosaunee longhouses were usually between twenty and thirty feet wide and the apex of their roofs were generally between eighteen to twenty feet high. The true center of longhouse family relationships revolved around the fireside family. (Johnson, 2003, p. 12) In fact their many c enturies old culture may have actually been the first congress of democracy in the America’s long before the Declaration of Independence or the United States Constitution. The Iroquois Nation was bound together by what is probably the worlds first constitution, known as the Gayanashagowa (Great Law of Peace). They are also touted as being the first true participatory democracy on the planet. (Benner, 2005, p. 32) They formed a United Nations among themselves. While our very recent constitution states that â€Å"all men are created equal,† in practice if certain people have something you need and do not want to give it up, then suddenly they are no longer people, savages and not men, but animals. While there had always been many disputes over the Native American, the Iroquois would find that in 1785 New York and its then Governor, George Clinton, along with a company called The New York Genesee

Trends in the area of biotechnology and its use in agriculture Research Paper

Trends in the area of biotechnology and its use in agriculture - Research Paper Example In addition, the sequencing of the human, selected plant, animal and bacterial genomes in the early part of the twenty-first century has led to the identification of genetic elements, and regulatory pathways and mechanism. These all resulted in products of biotechnology that were designed to understand, alleviate and cure diseases, and improve quality of life. The fields of medicine, agriculture/food and environmental protection have benefitted most from biotechnological innovations. As an example, insulin, a hormone which is either lacking or inactive in diabetics, used to be very expensive. Cost of insulin has been significantly reduced by its production using bacteria that have been genetically engineered to express in large amounts the insulin gene and subsequently, the insulin product. Other proteins with therapeutic effects have been produced in the same manner. The designs of drugs specific for different forms of a specific disease have been based on the molecular understandin g of the disease and the affected metabolic processes. Another major area that has exploited advances in biotechnology is agriculture. Traditional biotechnology in agriculture is centuries old. An example is wine-making, which utilizes certain bacteria to ferment grape extract to produce alcohol. Another traditional biotechnology is cheese-making (makes use of bacteria), and bread-making (use of yeast). Agriculture further utilized specific microbial species to kill insect pests, promote nitrogen fixation, nutrient uptake and hasten organic decomposition to produce organic fertilizers. An early type of modern biotechnology, plant tissue culture, revolutionized the asexual propagation of economically important crops like banana, pineapple, orchids and other ornamental crops. Tissue culture is also being utilized to produce disease-free planting materials, like banana

The importance of thinking adoption first when choosing a pet Research Paper

The importance of thinking adoption first when choosing a pet - Research Paper Example Rather than selecting a pet from an animal breeding farm, adopting an abandoned animal from a shelter, is increasingly gaining importance. Thesis Statement: The purpose of this paper is to investigate why adoption should be considered first when choosing a pet. Further, the use of pets in shelters as resources for adoption by healthcare institutions and other facilities will be examined. The Lucrative Breeding of Animals for the Pet-Supply Industry It was estimated in 2004 that the American pet-supply industry sales produced profits of over $23 billion every year, and that it would to continue rising. The increase in companion animals is considered by professionals in the industry as a positive sign people are appreciating the value of pets. However, a contrasting picture is revealed by the number of these ‘valued’ pets entering shelters and being euthanized. â€Å"Because the pet-supply industry is so lucrative, businesses put significant effort into marketing their pr oducts to the pet consumer† (Fournier & Geller 61). Media advertising also plays a major role in pet-supply sales, thereby contributing to overpopulation of pet animals. â€Å"Puppy mills† is the descriptive, derogatory term used for dog breeding farms that produce and supply puppies to pet stores. Strategies to terminate such enterprises include â€Å"educational programs to encourage adoption of pets from animal shelters† (Guither 108), promoting legislation to regulate and license dog breeding enterprises, and requiring pet stores to give the source of the animals they offer for sale. Some animal rights groups claim that policies have not been enforced against commercial dog breeding, and inspectors have not examined the animals in commercial breeding facilities. People wanting to buy a pet are advised by animal rights groups to buy from small family enterprises where puppies are well cared for and free from disease. Most animal welfare organizations â€Å"pr omote spaying and neutering to reduce the number of unwanted animals being born† (Guither 108). These campaigns have resulted in reducing the euthanization of homeless dogs and cats at the shelters. The Abandonment of Pets at Animal Shelters In the United States, every year millions of dogs and other companion animals are abandoned by their owners at animal shelters. Organizations such as the Humane Society operate thousands of shelters across the country, and do their best to provide temporary housing and other services to abandoned animals. Crucially, they attempt to find the animals permanent homes. Unfortunately, however, the numbers of abandoned animals are far greater than the number of people and families wanting to adopt them. Consequently, millions of animals are put to death every year to make room for new pets brought to the shelters. â€Å"One of the reasons most often cited by people who leave their former pets, usually dogs, at animal shelters is that the animal s engage in problem behaviors† (McDonald, Caso & Fugit 311) that their owners find difficult to deal with. Most of the members of animal rights groups do not approve of pet owning, considering it to be unethical, and a form of â€Å"fascism† or dictatorship, based on Americans’ treatment of their pets as materialistic commodities. To maintain ethical values in pet ownership, Guither (p.107) states that stewardship and not ownership should be the norm for companion animal care. The services offered by shelters, spaying and neute

Trends in the area of biotechnology and its use in agriculture Research Paper

Trends in the area of biotechnology and its use in agriculture - Research Paper Example In addition, the sequencing of the human, selected plant, animal and bacterial genomes in the early part of the twenty-first century has led to the identification of genetic elements, and regulatory pathways and mechanism. These all resulted in products of biotechnology that were designed to understand, alleviate and cure diseases, and improve quality of life. The fields of medicine, agriculture/food and environmental protection have benefitted most from biotechnological innovations. As an example, insulin, a hormone which is either lacking or inactive in diabetics, used to be very expensive. Cost of insulin has been significantly reduced by its production using bacteria that have been genetically engineered to express in large amounts the insulin gene and subsequently, the insulin product. Other proteins with therapeutic effects have been produced in the same manner. The designs of drugs specific for different forms of a specific disease have been based on the molecular understandin g of the disease and the affected metabolic processes. Another major area that has exploited advances in biotechnology is agriculture. Traditional biotechnology in agriculture is centuries old. An example is wine-making, which utilizes certain bacteria to ferment grape extract to produce alcohol. Another traditional biotechnology is cheese-making (makes use of bacteria), and bread-making (use of yeast). Agriculture further utilized specific microbial species to kill insect pests, promote nitrogen fixation, nutrient uptake and hasten organic decomposition to produce organic fertilizers. An early type of modern biotechnology, plant tissue culture, revolutionized the asexual propagation of economically important crops like banana, pineapple, orchids and other ornamental crops. Tissue culture is also being utilized to produce disease-free planting materials, like banana

Reliability and Validity Assignment Example | Topics and Well Written Essays - 250 words

Reliability and Validity - Assignment Example For the diagnosis to be termed accurate, the features identified have to be same every time if the test is to be termed reliable. This is measured by a correlation between the two test outcomes over all the participants. This method expresses the generalisability of the test scores over different test occasions by assessing stability of the test outcomes (Hempel, 2005). Hempel (2005) explains that this method of testing reliability varies with the type of tests, i.e. ability or traits and attitudes or states assessment. In both cases, repetitive responses based on previous memory is a high possibility thereby giving incorrect measures of reliability. Secondly, the traits tend to change with time, and this would depict low reliability measure, which is again incorrect (Garb, 2002). In such cases, the time period between the tests needs to be recorded appropriately in order to obtain accurate reliability measure. In case of validity, the test should be able to measure what is intended to be measured with minimum or no possibilities of change in behaviors. Reliability of the test decides the amount of correction and incorrect decisions that are made as an outcome of the test. Therefore, reliability is necessary for confirming validity. At the same time, validity of results obtained from this method is higher when the time gap is minimal; however, this minimum time varies with situation or behavior being

Midterm Learning Reflection Essay Example for Free

Midterm Learning Reflection Essay Introduction. You should print this out, although you may also use it as a template to type over. You will be writing two reflections this term: a midterm reflection and a final reflection. The final reflection is the one you want to have ultimately on your portfolio. Both your midterm and final learning reflections must be 700 to 1000 words, which is approximately two to three MLA-formatted pages. You can check your word count by going to Tools/Word Count on the menu bar. Style and Format. The writing style of the learning reflection is primarily expressive, but will also contain narrative elements. You do not need a Works Cited page unless you cite something. So, if, for example, you cite song lyrics, one of our texts, a poem, or even a work of art, then you need a Works Cited page. I’ve included one here to serve you for formatting purposes. File formats. We are going to be learning how to convert Word documents to pdf format so that they load more easily in a browser window. If you can, please practice with one or both of the following two methods, which are what I use (they are free). 1. Install a free pdf converter. These are not truly â€Å"free† in that they either force you to look at some advertising or they add a line on each page advertising the manufacturer of the software. I don’t have a problem with either of these and gladly suffer through the free advertising every time I convert a file to pdf, which I do all the time. The one I use to create all the pdf files for my classes is at http://www.pdf995.com/download.html. Download both the Pdf995 Printer Driver and the Free Converter (they are both free; they are required to work together, but for some reason, they are two separate downloads). After you go through the download and installation process, every time you want to create a pdf file from Word, all you need to do is select File/Print and then chose PDF995, which will show up as a â€Å"printer.† When you initiate this process of creating a pdf file, you will be prompted for a place to save the file, as well as a file name. Be careful to save the file to your H: drive or, if to your C: drive, to ftp (transfer) it over to your H: drive later. You will notice that some advertisements come up as the conversion process occurs. That’s the â€Å"price† you pay for the free conversion software. 2. The other pdf-conversion method I like is to use the free OpenOffice word processing software. This software should be in our labs. You can also download it for free on your own computer, from http://www.openoffice.org/. This is basically an open-source version of Microsoft Office. Once you’ve installed it (it’s large and takes a while to install), you can open any Word document with the OpenOffice word processing program (Open Document). Some of the original Word formatting may be lost – especially the header information with your last name and page number. You will need to add that back in; be sure you do it correctly. When you’re satisfied with the format, there is a little pdf icon on the toolbar that you can click, and that will automatically convert the document to pdf format. Learning Reflection Content. What should you discuss in your reflection? In general, you discuss what you’ve learned, what you’ve done especially well, what you’ve enjoyed – and the challenges you’ve encountered and how you might make changes in the future. Here are some suggestions for what to write about: †¢ Your experience transitioning from high school (or wherever you were previously) to a freshman in college, focusing on how you have grown as an individual and an independent student. †¢ Your experience in this particular course – your year-long freshman inquiry. In this regard, you should probably focus on the University Studies goals and the ways in which you have grown and developed with respect to those goals. I would expect that other courses have also contributed to the goal areas, so you might want to highlight any that have been particularly useful in that regard. †¢ Other experiences as a student here at Portland State. Portland State University’s mission is â€Å"Let Knowledge Serve the City,† which reflects the fact that we are an urban university. What have you learned with respect to community, diversity, and the connection between a learning community (the university) and the city in which it is located? Keep in mind that you may have acquired valuable experiences outside of the classroom, but still connected to your identity as a student. o Perhaps you have learned important lessons about discipline and time management as a student athlete, which may serve you well when you enter the workforce. o Maybe your involvement in activities with other students – such as taking dance classes or playing in the band or spending hours in an art studio or toughing out chemistry and physics labs – has improved your personal skills and brought to light new areas of interest, which you’ve pursued in your free time. o Or perhaps you’ve found out that you are a loner, that you haven’t connected very well with a lot of the people in your classes. As you reflect on this (or any other conclusions that some – maybe you – might consider, well, depressing), think of this is an opportunity to think of ways to make some changes in the future. †¢ A reflection, in other words, should include a self-assessment element as well as thinking along the lines of â€Å"What could I do better or differently in the future?† Consider the challenges you’ve faced, how you’ve overcome them, or how you’d like to overcome them in the future. Conclusion. Your reflection should end in a way that gives the reader the sense that you are closing up a chapter in your life and ready to move on, with some ideas in mind of what you might do differently. My suggestion is that you do not spend a lot of time critiquing the world around you; after all, you can’t change that very much. Confine your reflection to you and what you have learned and experienced. Dwelling on what you don’t like about a given course or program is not a reflection about you, but about something else. Works Cited Eakin, Paul John. How Our Lives Become Stories: Making Selves. Ithaca and London: Cornell UP, 1999. Fiske, John. â€Å"Popular Culture.† Critical Terms for Literary Study. Ed. Frank Lentricchia and Thomas McLaughlin. Chicago: University of Chicago Press, 1995. 321 335. Harrison, Claire. â€Å"Hypertext Links: Whither Thou Goest, and Why.† First Monday. 7 Oct. 2002. 10 Feb. 2004 .

Economic Globalisation and Competition

Economic Globalisation and Competition 1. Introduction Competition is a vital mechanism of the market economy and is an efficient means of guaranteeing consumers a level of quality in terms of the value and price of products and services. Economic globalization has increased volatile growth within international trade and as a result in subject of competition law. Article 81(1) of the EC Treaty ‘prohibits agreements between undertakings; decisions by associations of undertakings and concerted practices which may affect trade between Member States and which prevent restrict or distort competition’. These agreements shall be void according to 81(2). However, the agreements which satisfy the conditions set out in article 81(3) EC shall not be prohibited, no prior decision to that effect being required. 1.1. Anti-Competitive Agreements Article 81 of the EC Treaty, prohibiting anti-competitive agreements, must be considered in relation to all commercial agreements with a probable EU cross-border impact. The Horizontal and the Vertical agreements are the agreements, which are relevant for the purposes of the application of the competition rules. Horizontal agreements are those between undertakings operating at the same level of production or marketing, while vertical agreements are those completed between undertakings operating at different economic levels. Under EC Competition Law, restrains included in vertical agreements are regarded as not as much damaging than those included in horizontal agreements. In Consten and Grundig v Commission the European Court of Justice considered that Article 81(1) EC applies not only to horizontal agreements but also to vertical agreements. The later decisional practice of the Commission on the treatment of vertical arrangements under Art 81(1) and 81(3) EC, and the case law of the Community Courts, have been one of the most controversial and severely criticized aspects of Community competition policy. These agreements are very important for the functioning of the economy. Commercial agreements may be exempted from the application of article 81(1) under article 81(3). 1.2. The Vertical Block Exemption Regulation However, there is a ‘safe harbour’ for undertakings: the Vertical Block Exemption Regulation 2790/1999. Safe harbours exist for certain agreements including restrictions providing conditions are met so that agreements falling within the terms of the Regulation are exempt from the application of Article 81(1) EC guaranteeing the enforceability of the agreement and granting protection from antitrust prosecution. Thus, if undertakings wish to be certain that their vertical agreements are in line with EC competition law, they should agree on clauses within the scope of the Regulation. Outside this safe harbour, the European Commission’s Notice Guidelines on Vertical Restraints are a helpful guide for the assessment under Art 81(3) EC and are explaining the application of Regulation 2790/1999 and the Commission’s approach to vertical restraints. The Guidelines on Vertical Restraints sets out the principles for the assessment of vertical agreements under Article 81, including the application of the Regulation to vertical agreements. Article 2(1) of the Vertical Block Exemption Regulation gives the definition of vertical agreements and states that Article 81(1) shall not apply to ‘agreements or concerted practices entered into between two or more undertakings each of which operates, for the purposes of the agreement, at a different level of the production or distribution chain, and relating to the conditions under which the parties may purchase, sell or resell certain goods or services’. The Commission adopted the Vertical Block Exemption Regulation on 1999 and the new Block Exemption Regulation is expected in 2010. Modifications might remain quite limited and might concern, especially, the presentation of more certain rules on e-commerce, on internet sales and the treatment of resale price maintenance. 1.3. Scope of Application of the Vertical Block Exemption Regulation The objective of the Vertical Block Exemption Regulation is to exempt certain categories of vertical agreements that, under certain conditions, may improve economic efficiency within a production or distribution chain and is directed at vertical agreements for the purchase or sale of goods or services. The Regulation covers various vertical agreements and applies to any type of agreement entered into companies, which do not operate at the same level of the production or distribution chain. Agreements are covered by the Vertical Block Exemption Regulation on franchising, selective distribution, exclusive dealing, exclusive purchasing, exclusive supply, and non-genuine agency agreements within the scope of Article 81. An agency agreement falls outside article 81(1) where the agent bears no or only insignificant risks in relation to either of these matters. Article 81(1) does not apply to certain agreements or concerted practices entered into between two or more undertakings. The concept of an undertaking was discussed in Hofner and Elser v Matrocton. It was stated that: â€Å"The concept of an undertaking encompasses every entity engaged in economic activity regardless of the legal status of the entity and the way it is financed†. The definition of competing undertakings in Article 1(b) includes actual or potential suppliers in the same product market. The exclusion may be quite wide and uncertain in application. In Tetra Pack I it was considered that a contract within the terms of the Vertical Block Exemption Regulation enjoys exemption from Article 81(1), but not from article 82 unless the Commission withdraws the exemption for the future, with a decision. The Regulation does not apply, however, to vertical agreements to rent and lease agreements, as no sale takes place and to agreements which have as their primary object the licensing of intellectual property rights, nor automobile distribution agreements, nor agreements between competitors, except if they are ancillary to a vertical agreement and facilitate the purchase, sale or resale of the contract goods or services by the buyer and vertical agreements whose subject matter falls within the scope of another block exemption regulation. Also, the Vertical Block Exemption Regulation does not cover any restrictions or obligations that do not relate to the conditions of purchase, sale and resale. The Regulation does not apply to vertical agreements with a subject matter that falls within the scope of any other Block Exemption Regulation. The application of the Regulation, in certain circumstances, can be withdrawn by a decision of the European Commission, or the national competition authorities. Also, the European Commission can enact a regulation declaring the Regulation usually inapplicable to certain agreements including specific restraints. 1.4. Agreements between Competitors The Vertical Block Exemption Regulation does not cover vertical agreements that are concluded on a reciprocal basis between competitors. This exclusion may be very broad because it includes both actual and potential competitors, with the latter being defined as companies that would be able and likely to enter the market within one year. Vertical agreements between competitors are covered by the Vertical Block Exemption Regulation if the agreement is non-reciprocal and the buyer has a turnover not exceeding â‚ ¬100 million or the buyer is not a manufacturer of competing goods but only a competitor of the supplier at the distribution level. Also, are covered and where the supplier is a provider of services operating at several levels of trade, while the buyer does not provide competing services at the level of trade where it purchases the contract services. 1.5. Summary Article 81(1) EC prohibits agreements which have anti-competitive effects. By enacting the Vertical Block Exemption Regulation, the Commission has establish ‘safe harbors’ for undertakings, that outline conditions regarding when vertical agreements and concerted practices that have an anti-competitive purpose or results and would be prohibited under article 81(1) might be acceptable because they satisfy the criteria of article 81(3). When an agreement fulfills the conditions set out in the Regulation, the agreement is valid and enforceable. The Vertical Block Exemption Regulation is a measure under European Union law that grants an exemption from the application of Article 81. Agreements that meet the conditions set out in the Regulation are considered either not to adversely affect competition on the relevant European market(s) or only to affect competition to a limited degree. It is now time to examine if the Vertical Block Exemption Regulation has worked and whether the Regulation and the vertical Guidelines are need any modification, and, if so, what have to be done. PART I Requirements of the Application of the Vertical Block Exemption Regulation The Vertical Block Exemption Regulation contains certain requirements that have to be satisfied before, for the vertical agreement is able to benefit from the Regulation. The market share of the supplier must not exceed 30% (Article 3). Also the agreement must not contain any of the hard-core restrictions (Article 4). Finally, the Regulation contains conditions relating to three certain restrictions (Article 5). 2. The Market Share Cap The Market Share threshold is probably one of the most important provisions of the Vertical Block Exemption Regulation. In Article 3(1) is stated that ‘the market share held by the supplier does not exceed 30% of the relevant market on which it sells the contract goods or services’. Also, Article 3(2) states that ‘in the case of vertical agreements containing exclusive supply obligations, the exemption provided for in Article 2 shall apply on condition that the market share held by the buyer does not exceed 30% of the relevant market on which it purchases the contract goods or services’. In Telenor/Canal+/Canal Digital the 30% rule prevented the application of the Vertical Block Exemption Regulation. The market share threshold is aimed to reduce regulatory burdens from those businesses that, according to Bishop and Ridyard, ‘could not behave anti-competitively even if they tried’. The introducing of a market share cap was one the most hotly contested aspects of the Vertical Block Exemption Regulation. Businesses and its lawyers argued that such a rule would be unworkable, since it is so difficult to establish market shares with any degree of precision, particularly in rapidly developing markets. However, the Commission insisted that there was no better means of ensuring that the benefit of the Block Exemption, did not go to firms with too much market power, and the market share cap stayed, albeit in the form of a single threshold of 30%, rather that two of 20% and of 40% which had been proposed in an earlier draft. If the market share of the parties exceeds the 10% threshold described in the De Minimis Notice, Article 81(1) EC will normally not apply to the agreement if the product is new or if the existing product is sold for the first time on a different geographic market. One factor which may have assisted the Commission in prevailing was the fact that while discussions on the Vertical Block Exemption Regulation were going on, it published its white paper on procedural modernization in the application of articles 81 and 82 EC, which proposed the abolition of the notification system altogether. This may have led some to feel less strongly about the content of the Regulation. 2.1. Calculating the Market Share In order to calculate the market share there must be identified the manufactured goods and geographic markets. Regarding market definition, the general rules apply. On the relevant market, the supplier calculates its market share by comparing its turnover achieved on that market with the total value of sales on that market. However, the benefit of the Vertical Block Exemption Regulation will, subject to certain conditions, not always be lost if the market share exceeds the 30% threshold. In Rewe/Meinl the European Commission considered that a supplier is in a situation of â€Å"economic dependence† when the buyer accounts for over a 22% market share and thus buyer power might distort competition. John De Gregorio, European counsel for consumer goods manufacturer Kimberly-Clark Corporation, has stated: ‘With the introduction of market share thresholds to the block exemption analysis, it’s more important than ever for in-house counsel to know how the Commission and European courts may define the â€Å"relevant market† for the goods that your company manufactures and sells, and to be comfortable with the definition your company adopts’. 2.2. The De Minimis Doctrine and Agreements of Minor Importance In addition to the Vertical Block Exemption Regulation and the Guidelines the Commission has issued a series of notices, called ‘Notices on agreements of minor importance’ which give guidance on the agreements which will escape Article 81(1), because the market share of each or both of the parties to the agreement is too small. The European Commission’s de minimis Notice states that no Article 81 subjects are raised by an agreement between undertakings where in vertical agreements the market share of each party to the agreement does not exceed 15% of the relevant market, or 5% for vertical agreements where access to the relevant market is foreclosed by the increasing effect of parallel networks of vertical agreements by several companies. The ‘de minimis’ notice sets the relevant threshold at 5% for horizontal agreements. Commercial agreements between parties where market shares exceed these thresholds might however not have a considerable effect on competition or might benefit from exemption. Nevertheless, the presumption in the de minimis Notice will not apply if the commercial agreement contains hardcore restrictions. In Franz Volk v Establissments Vervaecke SPRL the 0.6% of market share in washing machines considered insignificant. In general, agreements taken between Small and Medium size Enterprisers are ‘de minimis’. Paragraph 3 of the Notice recognizes that agreements between small and medium-sized undertakings are rarely capable of appreciably affecting trade between Member States. Finally, Article 8 provides that the Commission can withdraw the benefit of Block Exemption where ‘50 % of a relevant market, contain specific restraints relating to that market. This Regulation shall not become applicable earlier than six months following its adoption’. 2.3. Market Power The Vertical Block Exemption Regulation states that, with some certain exceptions, all vertical restrains are acceptable unless they are coupled to significant market power. Market share thresholds are criticized to be uncertain because they need a definition of the market which is the reason why the idea of market share thresholds has been discarded in most systems. Also, the amount of market power can be considered by reference to market share. Scherer and Ross state that economic analysis shows that in most cases the welfare-reducing effects of vertical restrains depend on the degree of market power the involved firms have. If market shares are in general indicative of potential market power, they can never be considered without considering some other factors to achieve a reasonable assessment of market power for instance the barriers to entry and prospective competition and the characteristics of the oligopolistic dealings between businesses. The Commission in some of its judgments show that market shares do not equal market power. For example, in Alcatel-Telectra the Commission cleared a merger which gave the parties market shares of 83%. Also, in Rhone-Poulenc/SNIA the high degree of concentration was ought to weighed by the existence of rapid technology development. The most obvious issue, according to Professor Denis Waelbroeck, is to consider whether the system should not allow all vertical agreements which do not include hardcore restrictions, separately of the market share of the parties involved, and only apply a control under Article 82 EC in cases of dominance. That would remove the burden above the threshold for businesses to achieve a complex evaluation of their agreements under Article 81(1) and Article 81(3) EC and it will provide more legal certainty in this subject. In addition, the economic assessment required by the Guidelines on Vertical Restrains and the Guidelines on the application of Article 81(3) of the Treaty is challenging, and it is doubtful that many judges and parties will have the income or abilities to undertake it sufficiently, thus raising the danger of extensive, expensive and uncertain litigation. 2.4. Arguments about the Threshold The use of market shares as a key element of the Regulation’s treatment has been criticised as being possible to lead to uncertainty and unpredictability given the difficulties in defining the relevant market and market share. It may be argued that the threshold is too low or that it is improperly cast. Those who argue that the threshold is too low point out that the anti-competitive risks can arise only when there is a dominant firm. A non-dominant firm cannot increase rivals costs and cannot make damage to the consumers as they still benefit from inter-brand competition. Those who argue that the threshold is improperly cast would agree with the above criticism but bear in mind that anti-competitive effects can manifest themselves when there is the risk of oligopolistic interdependence. Bishop. and Ridyard state that an assessment of the market’s concentration would be more useful than the assessment of one players market share. Some argue that given the uncertainties over market definition, a market share threshold is not a substitute for a detailed analysis of whether the consumers suffer consequently of a particular practice but this might damage the effectiveness of the existing system which creates a safe harbour so that analytical incomes are allocated to those cases where anticompetitive effects are most possible to occur. The Vertical Block Exemption Regulation creation of a market share threshold which the Regulation does not apply, limits manufacturing businesses that manufacture extremely innovative goods and want to sell them before other businesses have the chance to promote competitive goods into the market. In this situation, the manufacturing businesses with the extremely innovative goods might have a very high market share in a particular industry within a specific geographic area as no competing goods exist. However, as its market share is more than 30%, the manufacturing business is unable to take benefit from the Regulation and would be banned from effectively distributing and selling its manufactured goods in the market. 2.5. Removing the Threshold The Vertical Block Exemption Regulation is unduly restrictive by setting the threshold at 30%. Many agreements thus escape the safe harbour though they are completely harmless from a competition law perspective. By removing the thresholds the sellers using private resellers may be penalised not as much as vertically integrate businesses. Also, abolishing the threshold would give more stability to the system because not all restrictions of competition under 81 are an abuse under 82. On the other hand, if the system is seen as too essential one may think a less radical change to the Regulation consisting of a differentiated approach identifying those clauses which can be problematic above 30% although the parties are not dominant. Those clauses which are always straightforward, even in cases of dominance and which thus essentially deserve an exemption and should not to be matter to any market share threshold and also those clauses which should never advantage from a group exemption even they are below 30%. 2.6. Summary The Vertical Block Exemption Regulation can simplify issues but also can cause difficulties. It makes issues simple as it offers the parties more flexibility in establishing their agreements and if a business’s market share is less than the related market share threshold the agreement will fall outside the scope of the competition rules or be qualified for exemption provided that it does not include hardcore restrictions. The Regulation can also cause difficulties as the parties’ market share must be verified in every case and this can be very hard in situations, for instance as those concerning new markets. Where the market share threshold is exceeded, issues become more difficult as the Regulation requires a complete evaluation of the agreement to define whether it would restrict competition under Article 81(1) and, if so, whether it would meet the requirements for an exemption under Article 81(3). This requires the parties to verify the economic effect of certain restrictions by considering how they would operate in the specific product market involved. The Vertical Block Exemption Regulation principally proposes that businesses with small market shares are given more choice to establish their agreements and will not require undertaking an antitrust review of their dealings. Businesses with large market shares might need to spend time and resources to assessing their agreements from an antitrust perspective. 3. The Hard-Core Restrictions The Vertical Block Exemption Regulation does not apply to vertical agreements that have certain anti-competitive objects. The Regulation lists a number of hard-core restrictions that, if included in the agreement, prevent the safe harbour from applying and cause the exclusion of the whole agreement from the benefit of the Block Exemption even if the market share of the supplier or buyer is below 30%. There are hard-core restrictions which apply to agreements between competitors, and agreements between non competitors. If one hard-core restriction is present in the agreement, the agreement will lose the benefit of the block exemption so Article 81(1) EC may apply. This can result in the unenforceability of the entire agreement and may even lead to fines and it is important that a severability or invalidity clause is included in the agreement where appropriate. Hard-core restrictions are considered to be so serious that they are almost always prohibited. In Javico International and Javico AG v Yves Saint Laurent Parfumes SA it was considered that hard-core restrictions do not infringe Article 81(1) except if they might have considerable effect on trade between Member States. There are five hard-core restrictions which, if there are contained in a vertical agreement, they have the consequence of taking the whole agreement outside the scope of the Regulation. 3.1. Resale Price Maintenance The first hard-core restriction concerns resale price maintenance. Article 4(a) states that the benefit of the Vertical Block Exemption Regulation does not apply to vertical agreements that fix prices and have the object of restricting a buyer’s ability to determine its sale price. A supplier is not allowed to fix or minimum the sale price at which distributors can resell his products. The restriction on the buyer’s power to establish his sale price is a hard-core restriction. The Commission in Yamaha considered that an obligation of a purchaser to resell at a particular price is ‘an obvious restriction of competition that is prohibited by Article 81(1)’. However, Paragraph 47 of the Guidelines states that ‘the provision of a list of price recommendations by the supplier to the buyer is not considered in itself as leading to resale price maintenance’ if they do not amount to a fixed or a minimum sale price. In Pronuptia de Paris v Pronuptia de Paris Irmgard Schillgalis, the Court held that the recommendation of prices would not infringe Article 81(1). In genuine agency agreements, where the principal bears all or almost all the financial and commercial risks related to the transactions concluded on his account by the agent, Article 81(1) would generally not be applicable. In Vlaamse Reisbureaus an agreement between travel agents and tour operators indented to oblige the travel agents to examine the prices and tariffs set by the Tour operators and the agents were banned from sharing commissions with or granting refunds to their customers. The Court held that the Belgium system infringed Article 81(1). From an economic point of view, it can be said that there is no certain analysis nowadays as to how to treat with resale price maintenance. Resale price maintenance can be pro-competitive or anti-competitive. Nevertheless, even when applying an effect based approach, it is obvious that in many cases competition will be delayed and that cases when resale price maintenance is efficient are actually quite rare. 3.1.2. Anti-Competitive and Pro-Competitive Effects in Resale Price Maintenance Resale price maintenance is a complex issue and may be harmful in some circumstances. There are two major anti-competitive effects in relation to resale price maintenance. These are the elimination of intra-brand price competition which has as a direct effect the price increase, and the resulting risk of a reduction in inter-brand competition which gains from increased price transparency, thus make easiest price collusion between manufacturers or distributors at a horizontal level. Other anti-competitive effects of the resale price maintenance, according to Luc Peeperkorn, are the loss of pressure on the seller’s scope and the loss of dynamism and innovation from in particular discounters. However, the doubts about the efficiency of and the likelihood that resale price maintenance leads to positive aspects. Economic theory has shown that this practice might have a number of efficiency benefits. For instance, price fixing may prevent ‘free riding’ by retail price discounters on the pre-sales services and/or reputation of full price dealers while it is obvious that intra-brand price competition will be reduced by imposing a fixed or minimum price. This can be reasonable, for example, where a distribution outlet offers first-class services on which customers then rely to buy at a cheaper discounter which does not provide these services and thus is able to charge lower prices. Free riding arises when one business benefits from the performance of another with no paying for it. A minimum price would remove the pricing advantage from the discounter and change intra-brand price competition with competition on services. Minimum resale price maintenance can thus occasionally be economically and commercially reasonable if certain conditions are fulfilled. One could argue that the ‘free riding’ problem could be solved by using other block exempted restrains achieving the same result. Some inefficiencies and externalities caused by the ‘free riding’ problem might be solved by exclusivity clauses, or selective distribution but this restraint may not be an ideal substitute in all conditions for resale price maintenance and it is then questionable that resale price maintenance should be per se prohibited in all cases. Also, resale price fixing can be useful to entrant manufacturers as it might assist them to position their products and thus retailers would have the incentives to invest in making the entrant’s products better known to consumers. Resale price maintenance has created worries in Commission because is being stand on national limits with different costs in different member states. According to Professor Boscheck, taking into account that the economic conditions to consider such restrains ‘are still either too crude or too costly to apply to allow for efficient rules and structured rule of reason’, it is difficult to argue that fixed or minimum prices should not be part of the hard-core list. On the other hand, it appears that such clauses are not considered as if an exemption were inconceivable in any case. There are reasonable arguments that such restrains, considered under an effects-based approach, can rarely be deemed as pro-competitive. It is still uncertain whether free riding by resale price maintenance to rationalize the exclusion of price competition between dealers or retailers. There are methods, for instance promotional allowances or service requirements, which can avoid ‘free riding’ without the anticompetitive side effect of reducing price competition between dealers and retailers. 3.2. Territorial and Customer Restrictions Article 4(b) states that restricting sales by the buyer into specified territories or to specified customers is a hard-core restriction. Distributors must remain free to decide where and to whom they sell. Paragraph 49 of the Guidelines recognizes two restrictions on buyers that would not be considered as hard-core under 4(b): a prohibition on resale except to certain and users for which there is an ‘objective justification related to the product’, and an obligation on the reseller relating to the display of the supplier’s brand names. There are exceptions to 4(b), such as restriction ‘of active sales into the exclusive territory or to an exclusive customer group reserved by the supplier or allocated by the supplier to another buyer’. The Commission in Souris-Topps held that Topps’s distribution agreements for its Pokemon Stickers and Cards failed to benefit from the Block exemption as they violated Article 4(b). The Paragraph 51 of the Guidelines deals with the Internet. It states that ‘A restriction on the use of the Internet by distributors could only be compatible with the Block Exemption Regulation to the extent that promotion on the Internet or sales over the Internet would lead to active selling into other distributors’ exclusive territories or customer groups’. The Commission in Yves Saint Laurent case held that a prohibition on internet publicity and sale usually constitutes a hard-core restriction. The Commission is awry of deterring the growth of e-commerce, and has confirmed that the use of the internet is not considered a form of active sales as it is a reasonable way of reaching customers. Provisions that restrict the territory into which, or the customers to whom, the buyer might sell the contract goods or services are illegal. There are four exceptions to that rule: (1) The restriction of active sales into the exclusive territory or to an exclusive customer group reserved to the supplier or allocated by the supplier to another buyer, where such a restriction does not limit sales by the customers of the buyer, (2) Restrictions of sales to end-users by a buyer operating at the wholesale level of trade, unless it relates to a selective distribution system. This Principle was established by the Commission in Villeroy Boch, (3) the restriction of sales to unauthorised distributors by the members of a selective distribution system, and (4) the restriction of the buyers ability to sell components, supplied for the purposes of incorporation, to customers who would use them to manufacture the same type of goods as those produced by the supplier. A restriction on active sales might not restrict sales by the consumers of the buyer. Thus, a seller can not prohibit his consumers to sell his goods or services on-line without an objective reason and he also can not reserve such sales to himself and/or advertising over the internet. The Vertical Guidelines contain definitions of the terms ‘active sales’ and ‘passive sales’. ‘Active sales’ are defined in paragraph 50 of the Guidelines and it means actively approaching individual customers inside another distributor’s exclusive territory or exclusive consumer group while ‘passive sales’ means responding to unsolicit Economic Globalisation and Competition Economic Globalisation and Competition 1. Introduction Competition is a vital mechanism of the market economy and is an efficient means of guaranteeing consumers a level of quality in terms of the value and price of products and services. Economic globalization has increased volatile growth within international trade and as a result in subject of competition law. Article 81(1) of the EC Treaty ‘prohibits agreements between undertakings; decisions by associations of undertakings and concerted practices which may affect trade between Member States and which prevent restrict or distort competition’. These agreements shall be void according to 81(2). However, the agreements which satisfy the conditions set out in article 81(3) EC shall not be prohibited, no prior decision to that effect being required. 1.1. Anti-Competitive Agreements Article 81 of the EC Treaty, prohibiting anti-competitive agreements, must be considered in relation to all commercial agreements with a probable EU cross-border impact. The Horizontal and the Vertical agreements are the agreements, which are relevant for the purposes of the application of the competition rules. Horizontal agreements are those between undertakings operating at the same level of production or marketing, while vertical agreements are those completed between undertakings operating at different economic levels. Under EC Competition Law, restrains included in vertical agreements are regarded as not as much damaging than those included in horizontal agreements. In Consten and Grundig v Commission the European Court of Justice considered that Article 81(1) EC applies not only to horizontal agreements but also to vertical agreements. The later decisional practice of the Commission on the treatment of vertical arrangements under Art 81(1) and 81(3) EC, and the case law of the Community Courts, have been one of the most controversial and severely criticized aspects of Community competition policy. These agreements are very important for the functioning of the economy. Commercial agreements may be exempted from the application of article 81(1) under article 81(3). 1.2. The Vertical Block Exemption Regulation However, there is a ‘safe harbour’ for undertakings: the Vertical Block Exemption Regulation 2790/1999. Safe harbours exist for certain agreements including restrictions providing conditions are met so that agreements falling within the terms of the Regulation are exempt from the application of Article 81(1) EC guaranteeing the enforceability of the agreement and granting protection from antitrust prosecution. Thus, if undertakings wish to be certain that their vertical agreements are in line with EC competition law, they should agree on clauses within the scope of the Regulation. Outside this safe harbour, the European Commission’s Notice Guidelines on Vertical Restraints are a helpful guide for the assessment under Art 81(3) EC and are explaining the application of Regulation 2790/1999 and the Commission’s approach to vertical restraints. The Guidelines on Vertical Restraints sets out the principles for the assessment of vertical agreements under Article 81, including the application of the Regulation to vertical agreements. Article 2(1) of the Vertical Block Exemption Regulation gives the definition of vertical agreements and states that Article 81(1) shall not apply to ‘agreements or concerted practices entered into between two or more undertakings each of which operates, for the purposes of the agreement, at a different level of the production or distribution chain, and relating to the conditions under which the parties may purchase, sell or resell certain goods or services’. The Commission adopted the Vertical Block Exemption Regulation on 1999 and the new Block Exemption Regulation is expected in 2010. Modifications might remain quite limited and might concern, especially, the presentation of more certain rules on e-commerce, on internet sales and the treatment of resale price maintenance. 1.3. Scope of Application of the Vertical Block Exemption Regulation The objective of the Vertical Block Exemption Regulation is to exempt certain categories of vertical agreements that, under certain conditions, may improve economic efficiency within a production or distribution chain and is directed at vertical agreements for the purchase or sale of goods or services. The Regulation covers various vertical agreements and applies to any type of agreement entered into companies, which do not operate at the same level of the production or distribution chain. Agreements are covered by the Vertical Block Exemption Regulation on franchising, selective distribution, exclusive dealing, exclusive purchasing, exclusive supply, and non-genuine agency agreements within the scope of Article 81. An agency agreement falls outside article 81(1) where the agent bears no or only insignificant risks in relation to either of these matters. Article 81(1) does not apply to certain agreements or concerted practices entered into between two or more undertakings. The concept of an undertaking was discussed in Hofner and Elser v Matrocton. It was stated that: â€Å"The concept of an undertaking encompasses every entity engaged in economic activity regardless of the legal status of the entity and the way it is financed†. The definition of competing undertakings in Article 1(b) includes actual or potential suppliers in the same product market. The exclusion may be quite wide and uncertain in application. In Tetra Pack I it was considered that a contract within the terms of the Vertical Block Exemption Regulation enjoys exemption from Article 81(1), but not from article 82 unless the Commission withdraws the exemption for the future, with a decision. The Regulation does not apply, however, to vertical agreements to rent and lease agreements, as no sale takes place and to agreements which have as their primary object the licensing of intellectual property rights, nor automobile distribution agreements, nor agreements between competitors, except if they are ancillary to a vertical agreement and facilitate the purchase, sale or resale of the contract goods or services by the buyer and vertical agreements whose subject matter falls within the scope of another block exemption regulation. Also, the Vertical Block Exemption Regulation does not cover any restrictions or obligations that do not relate to the conditions of purchase, sale and resale. The Regulation does not apply to vertical agreements with a subject matter that falls within the scope of any other Block Exemption Regulation. The application of the Regulation, in certain circumstances, can be withdrawn by a decision of the European Commission, or the national competition authorities. Also, the European Commission can enact a regulation declaring the Regulation usually inapplicable to certain agreements including specific restraints. 1.4. Agreements between Competitors The Vertical Block Exemption Regulation does not cover vertical agreements that are concluded on a reciprocal basis between competitors. This exclusion may be very broad because it includes both actual and potential competitors, with the latter being defined as companies that would be able and likely to enter the market within one year. Vertical agreements between competitors are covered by the Vertical Block Exemption Regulation if the agreement is non-reciprocal and the buyer has a turnover not exceeding â‚ ¬100 million or the buyer is not a manufacturer of competing goods but only a competitor of the supplier at the distribution level. Also, are covered and where the supplier is a provider of services operating at several levels of trade, while the buyer does not provide competing services at the level of trade where it purchases the contract services. 1.5. Summary Article 81(1) EC prohibits agreements which have anti-competitive effects. By enacting the Vertical Block Exemption Regulation, the Commission has establish ‘safe harbors’ for undertakings, that outline conditions regarding when vertical agreements and concerted practices that have an anti-competitive purpose or results and would be prohibited under article 81(1) might be acceptable because they satisfy the criteria of article 81(3). When an agreement fulfills the conditions set out in the Regulation, the agreement is valid and enforceable. The Vertical Block Exemption Regulation is a measure under European Union law that grants an exemption from the application of Article 81. Agreements that meet the conditions set out in the Regulation are considered either not to adversely affect competition on the relevant European market(s) or only to affect competition to a limited degree. It is now time to examine if the Vertical Block Exemption Regulation has worked and whether the Regulation and the vertical Guidelines are need any modification, and, if so, what have to be done. PART I Requirements of the Application of the Vertical Block Exemption Regulation The Vertical Block Exemption Regulation contains certain requirements that have to be satisfied before, for the vertical agreement is able to benefit from the Regulation. The market share of the supplier must not exceed 30% (Article 3). Also the agreement must not contain any of the hard-core restrictions (Article 4). Finally, the Regulation contains conditions relating to three certain restrictions (Article 5). 2. The Market Share Cap The Market Share threshold is probably one of the most important provisions of the Vertical Block Exemption Regulation. In Article 3(1) is stated that ‘the market share held by the supplier does not exceed 30% of the relevant market on which it sells the contract goods or services’. Also, Article 3(2) states that ‘in the case of vertical agreements containing exclusive supply obligations, the exemption provided for in Article 2 shall apply on condition that the market share held by the buyer does not exceed 30% of the relevant market on which it purchases the contract goods or services’. In Telenor/Canal+/Canal Digital the 30% rule prevented the application of the Vertical Block Exemption Regulation. The market share threshold is aimed to reduce regulatory burdens from those businesses that, according to Bishop and Ridyard, ‘could not behave anti-competitively even if they tried’. The introducing of a market share cap was one the most hotly contested aspects of the Vertical Block Exemption Regulation. Businesses and its lawyers argued that such a rule would be unworkable, since it is so difficult to establish market shares with any degree of precision, particularly in rapidly developing markets. However, the Commission insisted that there was no better means of ensuring that the benefit of the Block Exemption, did not go to firms with too much market power, and the market share cap stayed, albeit in the form of a single threshold of 30%, rather that two of 20% and of 40% which had been proposed in an earlier draft. If the market share of the parties exceeds the 10% threshold described in the De Minimis Notice, Article 81(1) EC will normally not apply to the agreement if the product is new or if the existing product is sold for the first time on a different geographic market. One factor which may have assisted the Commission in prevailing was the fact that while discussions on the Vertical Block Exemption Regulation were going on, it published its white paper on procedural modernization in the application of articles 81 and 82 EC, which proposed the abolition of the notification system altogether. This may have led some to feel less strongly about the content of the Regulation. 2.1. Calculating the Market Share In order to calculate the market share there must be identified the manufactured goods and geographic markets. Regarding market definition, the general rules apply. On the relevant market, the supplier calculates its market share by comparing its turnover achieved on that market with the total value of sales on that market. However, the benefit of the Vertical Block Exemption Regulation will, subject to certain conditions, not always be lost if the market share exceeds the 30% threshold. In Rewe/Meinl the European Commission considered that a supplier is in a situation of â€Å"economic dependence† when the buyer accounts for over a 22% market share and thus buyer power might distort competition. John De Gregorio, European counsel for consumer goods manufacturer Kimberly-Clark Corporation, has stated: ‘With the introduction of market share thresholds to the block exemption analysis, it’s more important than ever for in-house counsel to know how the Commission and European courts may define the â€Å"relevant market† for the goods that your company manufactures and sells, and to be comfortable with the definition your company adopts’. 2.2. The De Minimis Doctrine and Agreements of Minor Importance In addition to the Vertical Block Exemption Regulation and the Guidelines the Commission has issued a series of notices, called ‘Notices on agreements of minor importance’ which give guidance on the agreements which will escape Article 81(1), because the market share of each or both of the parties to the agreement is too small. The European Commission’s de minimis Notice states that no Article 81 subjects are raised by an agreement between undertakings where in vertical agreements the market share of each party to the agreement does not exceed 15% of the relevant market, or 5% for vertical agreements where access to the relevant market is foreclosed by the increasing effect of parallel networks of vertical agreements by several companies. The ‘de minimis’ notice sets the relevant threshold at 5% for horizontal agreements. Commercial agreements between parties where market shares exceed these thresholds might however not have a considerable effect on competition or might benefit from exemption. Nevertheless, the presumption in the de minimis Notice will not apply if the commercial agreement contains hardcore restrictions. In Franz Volk v Establissments Vervaecke SPRL the 0.6% of market share in washing machines considered insignificant. In general, agreements taken between Small and Medium size Enterprisers are ‘de minimis’. Paragraph 3 of the Notice recognizes that agreements between small and medium-sized undertakings are rarely capable of appreciably affecting trade between Member States. Finally, Article 8 provides that the Commission can withdraw the benefit of Block Exemption where ‘50 % of a relevant market, contain specific restraints relating to that market. This Regulation shall not become applicable earlier than six months following its adoption’. 2.3. Market Power The Vertical Block Exemption Regulation states that, with some certain exceptions, all vertical restrains are acceptable unless they are coupled to significant market power. Market share thresholds are criticized to be uncertain because they need a definition of the market which is the reason why the idea of market share thresholds has been discarded in most systems. Also, the amount of market power can be considered by reference to market share. Scherer and Ross state that economic analysis shows that in most cases the welfare-reducing effects of vertical restrains depend on the degree of market power the involved firms have. If market shares are in general indicative of potential market power, they can never be considered without considering some other factors to achieve a reasonable assessment of market power for instance the barriers to entry and prospective competition and the characteristics of the oligopolistic dealings between businesses. The Commission in some of its judgments show that market shares do not equal market power. For example, in Alcatel-Telectra the Commission cleared a merger which gave the parties market shares of 83%. Also, in Rhone-Poulenc/SNIA the high degree of concentration was ought to weighed by the existence of rapid technology development. The most obvious issue, according to Professor Denis Waelbroeck, is to consider whether the system should not allow all vertical agreements which do not include hardcore restrictions, separately of the market share of the parties involved, and only apply a control under Article 82 EC in cases of dominance. That would remove the burden above the threshold for businesses to achieve a complex evaluation of their agreements under Article 81(1) and Article 81(3) EC and it will provide more legal certainty in this subject. In addition, the economic assessment required by the Guidelines on Vertical Restrains and the Guidelines on the application of Article 81(3) of the Treaty is challenging, and it is doubtful that many judges and parties will have the income or abilities to undertake it sufficiently, thus raising the danger of extensive, expensive and uncertain litigation. 2.4. Arguments about the Threshold The use of market shares as a key element of the Regulation’s treatment has been criticised as being possible to lead to uncertainty and unpredictability given the difficulties in defining the relevant market and market share. It may be argued that the threshold is too low or that it is improperly cast. Those who argue that the threshold is too low point out that the anti-competitive risks can arise only when there is a dominant firm. A non-dominant firm cannot increase rivals costs and cannot make damage to the consumers as they still benefit from inter-brand competition. Those who argue that the threshold is improperly cast would agree with the above criticism but bear in mind that anti-competitive effects can manifest themselves when there is the risk of oligopolistic interdependence. Bishop. and Ridyard state that an assessment of the market’s concentration would be more useful than the assessment of one players market share. Some argue that given the uncertainties over market definition, a market share threshold is not a substitute for a detailed analysis of whether the consumers suffer consequently of a particular practice but this might damage the effectiveness of the existing system which creates a safe harbour so that analytical incomes are allocated to those cases where anticompetitive effects are most possible to occur. The Vertical Block Exemption Regulation creation of a market share threshold which the Regulation does not apply, limits manufacturing businesses that manufacture extremely innovative goods and want to sell them before other businesses have the chance to promote competitive goods into the market. In this situation, the manufacturing businesses with the extremely innovative goods might have a very high market share in a particular industry within a specific geographic area as no competing goods exist. However, as its market share is more than 30%, the manufacturing business is unable to take benefit from the Regulation and would be banned from effectively distributing and selling its manufactured goods in the market. 2.5. Removing the Threshold The Vertical Block Exemption Regulation is unduly restrictive by setting the threshold at 30%. Many agreements thus escape the safe harbour though they are completely harmless from a competition law perspective. By removing the thresholds the sellers using private resellers may be penalised not as much as vertically integrate businesses. Also, abolishing the threshold would give more stability to the system because not all restrictions of competition under 81 are an abuse under 82. On the other hand, if the system is seen as too essential one may think a less radical change to the Regulation consisting of a differentiated approach identifying those clauses which can be problematic above 30% although the parties are not dominant. Those clauses which are always straightforward, even in cases of dominance and which thus essentially deserve an exemption and should not to be matter to any market share threshold and also those clauses which should never advantage from a group exemption even they are below 30%. 2.6. Summary The Vertical Block Exemption Regulation can simplify issues but also can cause difficulties. It makes issues simple as it offers the parties more flexibility in establishing their agreements and if a business’s market share is less than the related market share threshold the agreement will fall outside the scope of the competition rules or be qualified for exemption provided that it does not include hardcore restrictions. The Regulation can also cause difficulties as the parties’ market share must be verified in every case and this can be very hard in situations, for instance as those concerning new markets. Where the market share threshold is exceeded, issues become more difficult as the Regulation requires a complete evaluation of the agreement to define whether it would restrict competition under Article 81(1) and, if so, whether it would meet the requirements for an exemption under Article 81(3). This requires the parties to verify the economic effect of certain restrictions by considering how they would operate in the specific product market involved. The Vertical Block Exemption Regulation principally proposes that businesses with small market shares are given more choice to establish their agreements and will not require undertaking an antitrust review of their dealings. Businesses with large market shares might need to spend time and resources to assessing their agreements from an antitrust perspective. 3. The Hard-Core Restrictions The Vertical Block Exemption Regulation does not apply to vertical agreements that have certain anti-competitive objects. The Regulation lists a number of hard-core restrictions that, if included in the agreement, prevent the safe harbour from applying and cause the exclusion of the whole agreement from the benefit of the Block Exemption even if the market share of the supplier or buyer is below 30%. There are hard-core restrictions which apply to agreements between competitors, and agreements between non competitors. If one hard-core restriction is present in the agreement, the agreement will lose the benefit of the block exemption so Article 81(1) EC may apply. This can result in the unenforceability of the entire agreement and may even lead to fines and it is important that a severability or invalidity clause is included in the agreement where appropriate. Hard-core restrictions are considered to be so serious that they are almost always prohibited. In Javico International and Javico AG v Yves Saint Laurent Parfumes SA it was considered that hard-core restrictions do not infringe Article 81(1) except if they might have considerable effect on trade between Member States. There are five hard-core restrictions which, if there are contained in a vertical agreement, they have the consequence of taking the whole agreement outside the scope of the Regulation. 3.1. Resale Price Maintenance The first hard-core restriction concerns resale price maintenance. Article 4(a) states that the benefit of the Vertical Block Exemption Regulation does not apply to vertical agreements that fix prices and have the object of restricting a buyer’s ability to determine its sale price. A supplier is not allowed to fix or minimum the sale price at which distributors can resell his products. The restriction on the buyer’s power to establish his sale price is a hard-core restriction. The Commission in Yamaha considered that an obligation of a purchaser to resell at a particular price is ‘an obvious restriction of competition that is prohibited by Article 81(1)’. However, Paragraph 47 of the Guidelines states that ‘the provision of a list of price recommendations by the supplier to the buyer is not considered in itself as leading to resale price maintenance’ if they do not amount to a fixed or a minimum sale price. In Pronuptia de Paris v Pronuptia de Paris Irmgard Schillgalis, the Court held that the recommendation of prices would not infringe Article 81(1). In genuine agency agreements, where the principal bears all or almost all the financial and commercial risks related to the transactions concluded on his account by the agent, Article 81(1) would generally not be applicable. In Vlaamse Reisbureaus an agreement between travel agents and tour operators indented to oblige the travel agents to examine the prices and tariffs set by the Tour operators and the agents were banned from sharing commissions with or granting refunds to their customers. The Court held that the Belgium system infringed Article 81(1). From an economic point of view, it can be said that there is no certain analysis nowadays as to how to treat with resale price maintenance. Resale price maintenance can be pro-competitive or anti-competitive. Nevertheless, even when applying an effect based approach, it is obvious that in many cases competition will be delayed and that cases when resale price maintenance is efficient are actually quite rare. 3.1.2. Anti-Competitive and Pro-Competitive Effects in Resale Price Maintenance Resale price maintenance is a complex issue and may be harmful in some circumstances. There are two major anti-competitive effects in relation to resale price maintenance. These are the elimination of intra-brand price competition which has as a direct effect the price increase, and the resulting risk of a reduction in inter-brand competition which gains from increased price transparency, thus make easiest price collusion between manufacturers or distributors at a horizontal level. Other anti-competitive effects of the resale price maintenance, according to Luc Peeperkorn, are the loss of pressure on the seller’s scope and the loss of dynamism and innovation from in particular discounters. However, the doubts about the efficiency of and the likelihood that resale price maintenance leads to positive aspects. Economic theory has shown that this practice might have a number of efficiency benefits. For instance, price fixing may prevent ‘free riding’ by retail price discounters on the pre-sales services and/or reputation of full price dealers while it is obvious that intra-brand price competition will be reduced by imposing a fixed or minimum price. This can be reasonable, for example, where a distribution outlet offers first-class services on which customers then rely to buy at a cheaper discounter which does not provide these services and thus is able to charge lower prices. Free riding arises when one business benefits from the performance of another with no paying for it. A minimum price would remove the pricing advantage from the discounter and change intra-brand price competition with competition on services. Minimum resale price maintenance can thus occasionally be economically and commercially reasonable if certain conditions are fulfilled. One could argue that the ‘free riding’ problem could be solved by using other block exempted restrains achieving the same result. Some inefficiencies and externalities caused by the ‘free riding’ problem might be solved by exclusivity clauses, or selective distribution but this restraint may not be an ideal substitute in all conditions for resale price maintenance and it is then questionable that resale price maintenance should be per se prohibited in all cases. Also, resale price fixing can be useful to entrant manufacturers as it might assist them to position their products and thus retailers would have the incentives to invest in making the entrant’s products better known to consumers. Resale price maintenance has created worries in Commission because is being stand on national limits with different costs in different member states. According to Professor Boscheck, taking into account that the economic conditions to consider such restrains ‘are still either too crude or too costly to apply to allow for efficient rules and structured rule of reason’, it is difficult to argue that fixed or minimum prices should not be part of the hard-core list. On the other hand, it appears that such clauses are not considered as if an exemption were inconceivable in any case. There are reasonable arguments that such restrains, considered under an effects-based approach, can rarely be deemed as pro-competitive. It is still uncertain whether free riding by resale price maintenance to rationalize the exclusion of price competition between dealers or retailers. There are methods, for instance promotional allowances or service requirements, which can avoid ‘free riding’ without the anticompetitive side effect of reducing price competition between dealers and retailers. 3.2. Territorial and Customer Restrictions Article 4(b) states that restricting sales by the buyer into specified territories or to specified customers is a hard-core restriction. Distributors must remain free to decide where and to whom they sell. Paragraph 49 of the Guidelines recognizes two restrictions on buyers that would not be considered as hard-core under 4(b): a prohibition on resale except to certain and users for which there is an ‘objective justification related to the product’, and an obligation on the reseller relating to the display of the supplier’s brand names. There are exceptions to 4(b), such as restriction ‘of active sales into the exclusive territory or to an exclusive customer group reserved by the supplier or allocated by the supplier to another buyer’. The Commission in Souris-Topps held that Topps’s distribution agreements for its Pokemon Stickers and Cards failed to benefit from the Block exemption as they violated Article 4(b). The Paragraph 51 of the Guidelines deals with the Internet. It states that ‘A restriction on the use of the Internet by distributors could only be compatible with the Block Exemption Regulation to the extent that promotion on the Internet or sales over the Internet would lead to active selling into other distributors’ exclusive territories or customer groups’. The Commission in Yves Saint Laurent case held that a prohibition on internet publicity and sale usually constitutes a hard-core restriction. The Commission is awry of deterring the growth of e-commerce, and has confirmed that the use of the internet is not considered a form of active sales as it is a reasonable way of reaching customers. Provisions that restrict the territory into which, or the customers to whom, the buyer might sell the contract goods or services are illegal. There are four exceptions to that rule: (1) The restriction of active sales into the exclusive territory or to an exclusive customer group reserved to the supplier or allocated by the supplier to another buyer, where such a restriction does not limit sales by the customers of the buyer, (2) Restrictions of sales to end-users by a buyer operating at the wholesale level of trade, unless it relates to a selective distribution system. This Principle was established by the Commission in Villeroy Boch, (3) the restriction of sales to unauthorised distributors by the members of a selective distribution system, and (4) the restriction of the buyers ability to sell components, supplied for the purposes of incorporation, to customers who would use them to manufacture the same type of goods as those produced by the supplier. A restriction on active sales might not restrict sales by the consumers of the buyer. Thus, a seller can not prohibit his consumers to sell his goods or services on-line without an objective reason and he also can not reserve such sales to himself and/or advertising over the internet. The Vertical Guidelines contain definitions of the terms ‘active sales’ and ‘passive sales’. ‘Active sales’ are defined in paragraph 50 of the Guidelines and it means actively approaching individual customers inside another distributor’s exclusive territory or exclusive consumer group while ‘passive sales’ means responding to unsolicit