Synthesis and Component Analysis of an Iron (Iii) Oxalate...

Experiments 4A-C: Synthesis and Component Analysis of an Iron (III) Oxalate Complex My Name TA, Section B## Work Performed on 10/23, 10/30, 11/4, 200# Report due Tuesday, November ##, 200# 1. Abstract This experiment initially involved the synthesis of an iron (III) oxalate complex with the general formula Kw[Fex(C2O4)y] ·zH2O. The variables x, y, and z were determined through the duration of the entire experiment. From 1.2000g of Fe(NH4)2(SO4)2 were synthesized 1.1###g of K3[FeIII(C2O4)3] ·3H2O, owing for a percentage yield of 74.###%. A percentage yield of 11#.##% was also calculated, had the final product been K[FeIII(C2O4)2] ·2H2O. This value was rejected because experimental errors are never to exceed theoretical values,†¦show more content†¦The redox components occur in pairs, with one species (the reductant) giving up its electron(s) to be taken up by the other species (the oxidant). 4A involves the synthesis of an iron (III) oxalate complex. The iron is first presented in its Fe2+ form, so it must first be oxidized to Fe3+ before the oxalate ion will bind readily to it. Hydrogen peroxide is the oxidant of choice: 2Fe2+ (aq) + H2O2 (l) + 2H+ (aq) 2Fe3+ (aq) + 2H2O (l), in acidic solution. (1) The oxalate ion is then free to coordinate to the Fe3+ ion, forming a complex of Fe(C2O4). The oxalate ion is the conjugate base of the weak oxalic acid, H2C2O4. In lab, careful attention is paid to the maintenance of the H2C2O4-C2O42- equilibrium, as only the oxalate ion is capable of coordinating. This is done through the addition of H2C2O4 and the soluble K2C2O4 – only the oxalate anion is of concern: (2) The complex may then be synthesized – the general reaction equation is: aFe(NH4)2(SO4)2 ·6H2O + bK+ + cC2O42- + dH2C2O4 eK3[Fe3+(C2O4)3] ·3H2O (3) The complex is then precipitated out and rendered into a crystalline form with ice (decreased temperature results in decreased solubility) and ethanol (a polar solvent; the nonpolar target product will have limited solubility in ethanol because of the violation of the like-dissolves-like rule). The most likely synthesis products areShow MoreRelatedSynthesis and Component Analysis of an Iron (Iii) Oxalate Complex7868 Words   |  32 PagesExperiments 4A-C: Synthesis and Component Analysis of an Iron (III) Oxalate Complex My Name TA, Section B## Work Performed on 10/23, 10/30, 11/4, 200# Report due Tuesday, November ##, 200# 1. Abstract This experiment initially involved the synthesis of an iron (III) oxalate complex with the general formula Kw[Fex(C2O4)y] ·zH2O. The variables x, y, and z were determined through the duration of the entire experiment. From 1.2000g of Fe(NH4)2(SO4)2 were synthesized 1.1###g of K3[FeIII(C2O4)3] ·3H2ORead MoreIons in Our Daily Life2554 Words   |  11 Pagesis a common mechanism exploited by natural and artificial biocides, including the ion channels gramicidin and amphotericin (a fungicide). Inorganic dissolved ions are a component of total dissolved solids, an indicator of water quality in the world. Chemistry Notation Denoting the charged state Equivalent notations for an iron atom (Fe) that lost two electrons. When writing the chemical formula for an ion, its net charge is written in superscript immediately after the chemical structure for theRead MoreThe Extraction of Pectin from Orange Peels13647 Words   |  55 Pagesin the extraction step and varied volumetric ratio of the Ethanol in the precipitation. The results obtained showed that methanol extraction of oil as a pre-treatment gave a higher yield of pectin than using hydrochloric acid on the raw peel. The analysis carried out on the extracted pectin showed that pectin from post-methanol pre-treatment residue have a dark brown colour, with density of 0.133 g/cm3 and a yield of 16.06% while that without methanol pre-treatment have a greenish yellow colour, 0 Synthesis and Component Analysis of an Iron (Iii) Oxalate... Experiments 4A-C: Synthesis and Component Analysis of an Iron (III) Oxalate Complex My Name TA, Section B## Work Performed on 10/23, 10/30, 11/4, 200# Report due Tuesday, November ##, 200# 1. Abstract This experiment initially involved the synthesis of an iron (III) oxalate complex with the general formula Kw[Fex(C2O4)y] ·zH2O. The variables x, y, and z were determined through the duration of the entire experiment. From 1.2000g of Fe(NH4)2(SO4)2 were synthesized 1.1###g of K3[FeIII(C2O4)3] ·3H2O, owing for a percentage yield of 74.###%. A percentage yield of 11#.##% was also calculated, had the final product been K[FeIII(C2O4)2] ·2H2O. This value was rejected because experimental errors are never to exceed theoretical values,†¦show more content†¦Experiment 4C utilized Spectrophotometry to determine the iron content in the iron (III) oxalate complex. The results were combined with findings from 4A and 4B to determine the empirical formula and percentage yield of the compound synthesized in 4A. Spectrophotometry is a routine laboratory test that has the added advantage of being able to analyze multiple samples in a short amount of time. The sample to be tested absorbs a certain amount of electromagnetic radiation from a source, and the amount absorbed is related to the concentration of a species in solution—or more specifically, the concentration (c) and the path length (b). the ratio of intensity of light entering the cell (I0) and leaving the cell (I) are related by Beer’s Law. The transmittance (T) represents the fraction of the original radiant energy that passes through, or is transmitted, to the other wise of the cell. These terms are related by the equation: ï £ «1ï £ ¶ ï £ « I. ï £ ¶ ï £ «1ï £ ¶ ï £ « I. ï £ ¶ lnï £ ¬ ï £ · = lnï £ ¬ ï £ · = kbc or logï £ ¬ ï £ · = logï £ ¬ ï £ · = ÃŽ µbc (5) ï £ ­T ï £ ¸ ï £ ­Iï £ ¸ ï £ ­T ï £ ¸ ï £ ­Iï £ ¸ The term I0/I is renamed absorbance where A=ÃŽ µbc with A=log(1/T). The conversion between absorbance ï £ « 100 ï £ ¶ and percent transmittance is given by A = logï £ ¬ ï £ · . The most efficient way of determining ï £ ­ %T ï £ ¸ concentration is to prepare a set of standard solutions of known concentration,Show MoreRelatedSynthesis and Component Analysis of an Iron (Iii) Oxalate Complex7868 Words   |  32 PagesExperiments 4A-C: Synthesis and Component Analysis of an Iron (III) Oxalate Complex My Name TA, Section B## Work Performed on 10/23, 10/30, 11/4, 200# Report due Tuesday, November ##, 200# 1. Abstract This experiment initially involved the synthesis of an iron (III) oxalate complex with the general formula Kw[Fex(C2O4)y] ·zH2O. The variables x, y, and z were determined through the duration of the entire experiment. From 1.2000g of Fe(NH4)2(SO4)2 were synthesized 1.1###g of K3[FeIII(C2O4)3] ·3H2ORead MoreIons in Our Daily Life2554 Words   |  11 Pagesis a common mechanism exploited by natural and artificial biocides, including the ion channels gramicidin and amphotericin (a fungicide). Inorganic dissolved ions are a component of total dissolved solids, an indicator of water quality in the world. Chemistry Notation Denoting the charged state Equivalent notations for an iron atom (Fe) that lost two electrons. When writing the chemical formula for an ion, its net charge is written in superscript immediately after the chemical structure for theRead MoreThe Extraction of Pectin from Orange Peels13647 Words   |  55 Pagesin the extraction step and varied volumetric ratio of the Ethanol in the precipitation. The results obtained showed that methanol extraction of oil as a pre-treatment gave a higher yield of pectin than using hydrochloric acid on the raw peel. The analysis carried out on the extracted pectin showed that pectin from post-methanol pre-treatment residue have a dark brown colour, with density of 0.133 g/cm3 and a yield of 16.06% while that without methanol pre-treatment have a greenish yellow colour, 0

What Everybody Dislikes About Best Friend Essay Samples and Why

What Everybody Dislikes About Best Friend Essay Samples and Why What Best Friend Essay Samples Is - and What it Is Not There are an infinite number of quantities of tattoos that will get the job done for best friends. There are a number of places to have ideas for the best friend tattoos. In addition, a tattoo of the greatest friends face, birthday, name or initials might not be the ideal idea. As it is going to be in May, we would like to plant beautiful flowers in her garden. What Everybody Dislikes About Best Friend Essay Samples and Why Bridget's essay is extremely strong, but there continue to be a couple little things that could be made better. The fight becomes quite serious and we met the principal to address the matter. You ought to be proficient in the topic, have an overall idea about the chosen issue and figure out how to get the best arguments to show your thesis. In the principal body of the friendship essay it is possible to elaborate on the aforementioned su bjects, using them as cornerstones. Free Best Friend essay samples can be found FreeEssayHelp with no payment or registration. Inside this Book is my very best friend' essay, I'll demonstrate that books still remain our finest friends for the reason that they might be outdated as physical objects, but much less an idea. Therefore, before you pay to write essay for you, make certain that you have taken necessary measures to make sure that you my very best friend essays are choosing the appropriate professionals and service who can write quality my very best friend essays papers for you. Browsing our essay my very best friend essays writing samples can provide you an idea whether the standard of our essays is the quality you are searching for. New Questions About Best Friend Essay Samples Occasionally it's helpful to observe how others were able to get over the difficult first-line hump. It's a person who is always prepared to come to assist you, somebody who understands you and doesn't ask questions if you don't wi sh to. A friend will permit you to win sometimes especially if he's too fantastic that you beat in a for instance a game like chess. Someone is never likely to feel alone in the existence of books. The True Meaning of Best Friend Essay Samples Bear in mind however, that the choice to have a dog is a significant one that shouldn't be dismissed. The time and effort spent taking care of your dog is going to be returned to you in the shape of the lifelong loyalty and friendship that you are going to receive from your dog. You have to attempt to trace your friends' behavior to a particular event once you're confident that they're ignoring you. A friend also attempts to make you truly feel good about yourself especially whenever you have confidence problems and your ego is shattered. Let's take a better look at a number of the things that could demonstrate the real value of friendship. You have to be sure your friends are deliberately ignoring you before you jump to conclusions that may bring a stop to your friendship. A friend is a person who's with you in positive and negative times, somebody who shares your joys and sorrows. Carefully observe your friendship and watch out for a few of these obvious indications your friend could be ignoring you. A friend corrects you once you are in the incorrect. It's normal and at times inevitable to be attracted to your very best friend. Thus, what really makes a friend your very best friend. If your friend loves nature, you can present your friend a gift that is constructed of recycled materials of all sort. Make sure you're likely to watch your friend's beloved team. Generally, it's difficult to get a single and direct definition of the very best friend. You don't need to bow to fashion and purchase the most stylish and pricey clothes, but maybe a very simple move away from the too-short-pants and bright over-sized sweatshirt will aid your child be among the gang. In the realm of animals man's best friend is referred to as a dog. Friendship is having the capability to cry together. It is the relationship between two or many friends. They are not born overnight, but they can be lost almost as quickly. They are very important in life.

College Answers free essay sample

Good morning and welcome to all who have gathered here today! Ill try my best to avoid the Papa Keith speeches of Koki engineer aka cam garage, business mien Koki pan Anna garage Its kind of funny that we have got to bald farewell to this college today only to come back In a few days to give our visa and 8th seem exams. But then I guess we have to make do with what we have, and Im happy that I got a chance to speak to all my friends from college on this occasion I think that a farewell speech Is probably the ONLY speech where students actually sites to the speaker (well I am hoping at least that Is the case right now! Now that I have your undivided attention, let me share a few experiences I had during the past 4 years of my life in K. We will write a custom essay sample on College Answers or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page J Somalia Engineering. It was a scary feeling when all of us got in this college through the admission rounds at VISIT. When I came out of the inner hall with the confirmation slip in my hand I hardly knew anything about the college. It was chosen only for its proximity to my place. And what a decision it was in return for an engineering seat in an unknown college I got back innumerable friends and loads of good times.First Year Engineering must be THE most memorable year for any of the students out here. I think all of us would agree that the Symphony during our First Year -when Primary had been here was the best one we had. The best part about FEE was that the college management had not divided the students according to branches. This gave us a chance to interact with people from all the branches for one whole year. This helped a lot by keeping us acquainted, even when we were separated from the second year onwards. I can remember it clearly FEE classes in the old workshop building with temperatures

Innovation Report for Bajaj Essay Example

Innovation Report for Bajaj Essay 1. A critical review of its overall business strategy. (15%) Introduction of the company The group was founded in 1926, from the height of the British independent movement in India has a glorious history. Bajaj Group is one of the top 10 commercial establishments in India. Its footprint across a wide range of industry sectors, including automobiles (two-wheelers and three-wheelers). The Groups flagship company, Bajaj Auto, is listed as the worlds fourth largest two-and three-wheeled motorcycle manufacturer Bajaj brand is well-known in several countries of Latin America, Africa, Middle East, South Asia and Southeast Asia. ttp://www. bajajauto. com/bajaj_corporate. asp * Company profile, (vision ,mission, brief history) Vision and Mission Statement Bajaj line of, vision and mission statement they defined its brand essence and brand value. The corporate brand is the visual expression of their own thoughts and actions convey their intent to continue to inspire confidence. The essence of their brand, the brand is the soul of the enterprise. They are doing their own brand value, its value learning, innovation, perfection, speed and transparency. Value Learning Learning is to how Bajaj ensure positive. This is a value; it contains a knowledge platform for building a moderately prosperous notice, reasonable and decisive action. Innovation Innovation is how Bajaj creating the future. This is a value, triggering significant beyond the pursuit of more than ordinary. Perfect Perfection Perfect is how Bajaj Jishu Li new standard. This is a value to show our determination, Excel, and efforts to establish a new benchmark, all the time. Speed Speed how Bajaj convey the clear conviction. This is a value; significant response reflects our commitment to our goals and process. Transparency Transparency is how Bajaj characteristics. It is a value worth through the credibility of integrity, trust sensitivity and loyalty through interdependence. http://corporatemissions. blogspot. sg/2007/10/bajaj-auto. html A Brief History Integrity, dedication, resourcefulness and determination to succeed, today is the characteristics of the group, often be traced back to its birth in those days the tireless dedication to a common cause. We will write a custom essay sample on Innovation Report for Bajaj specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Innovation Report for Bajaj specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Innovation Report for Bajaj specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Jamnalal Bajaj, founder of the Group, is a close friend and disciple of Mahatma Gandhi. In fact, Gandhi had by him and his son. This close relationship, deeply involved in his independence movement did not leave Jamnalal Bajaj too much time is spent in his new commercial enterprise. In 1942, his son, Kamalnayan Bajaj, then 27, took over the business rule. He is too close to Gandhis independence in 1947, his business is able to give his full attention. Kamalnayan Bajaj not only consolidated the Group, but also extended to a variety of production activities. The Rahul Erbaguji, Chairman of the Group, is responsible for the business in 1965. Under his leadership, the turnover of the Bajaj Autos flagship company from INR. 72 million INR. 120 billion, its expanding product portfolio and brand to find a global market. He is one of Indias most distinguished business leaders, his business acumen and entrepreneurial spirit to be respected and internationally. * Company current business situation of the company. as per the above chart company financial position is mush stable and in a strong shoes of profitability. ompany is growing and developing back to back year by year. thats the reason behind it; it started recognizing as Indias top two wheeler company and even company started globalizing very fast, it started creating footprints all over the world. before these last three years company face few number of looses thats the reason because of international crises. one of the another reason for these good business is its most challenging innova tive products and its products demand in the market, today customers wait for the innovative product of the company. Current product/technology/process/patent that the company is having. Product- Currently Bajaj auto deals in both two wheelers and three wheelers vehicles. Technology Take a long time, use DTSI technology; Bajaj introduced the three Terry Poole SPRAK plug technology spark plug in the part-load conditions for better fuel efficiency, provide unprecedented performance and efficiency and best combustion, and to ensure low emissions. Process Technology, this new status symbol Change a new, vibrant Bajaj Auto Is in close contact with customers, and believe in Speed nd innovation, to create excitement Through its products, focus on transparency. It is an identity, is to inspire confidence. It represents a new India Company. Patent Patent is in the two-wheeler sector product quality, technology up-gradation, customer service, changing environment http://www. universityessay s. com/example-essays/english-language/the-bajaj-auto. php http://www. universityessays. com/example-essays/english-language/the-bajaj-auto. php#ixzz2Dn3XEfa3 * Current industry (what is happening that can affect the business. Bajaj Auto introduced a new graphics engine as promised Bajaj India has launched the new 2012 models pulsars in January 2012. It was named pulsar 200ns of. It is cooled by the liquid 200cc engine of 23. 17 horsepower at 8000 rpm at 9500rpm for a maximum torque of 18. 3 nm. However, it is expected that Bajaj pulsar line to rise. The face-lift is very necessary, because the pulsar was launched nearly a decade ago. Anyway, 200ns pulsar is a new product; new exhaust layout is now below 200 Duke Engine. The pulsar 200ns new styling and technology. It has a new design alloy wheels, instrument panel, fuel tank and the side of the spoon. http://autos. maxabout. com/bikes/bajaj/pulsar-2008/pulsar-200 2. Why is it necessary for them to employ innovation into the company (20%) (Application of theory from your lectures is required. ) Your analysis on innovation will focus on any of the following within the MNC(select min 2 theories) You are expected to link /incorporate theories into the focus areas that you write. You are required to identify what is the issue that drives them to innovation. Thus you need to write on drivers to innovation. * Materials technology DTSI technology DTS-Fi wireless network connection and DTS-SI engine technology mother is very fuel-efficient. Engine technology also helps to reduce emissions and keep the environment clean and green. Technical innovations include new products and processes, product and process technology changes. If it has been on the market an innovation (product innovation) has been implemented. For example: Bajaj Pulsar 200 NS bike next technological innovation known as pulsars, it is found these days in Mumbai. Reveal of technology innovation Bajaj car in the pulsar 2001 season and release pulsar in the last edition of the 2009 season. The organization also proposed that all release occurred in the pulsar motorcycle. The pulsar 200 NS is a 4-valve pressure stage of technological innovation curiosity multiple technical innovation, providing better gas range and efficiency of the results. NS bare game. DTSI technology- Patented technologies pulsar follow road, the R D lab bike competition. In the Automotive industry, driven technology innovation in different parts of the vehicle, and this trend will continue to be observed in all the major areas such as chassis, powertrain, electronics and security, among others. Such technical developments will occur not just in these areas, the arrival of new modular assembly techniques will transform the court systems and methods together. http://www. anticiv. info/tag/technological-innovation/ http://stats. oecd. org/glossary/detail. asp? ID=2688 http://www. efytimes. com/e1/fullnews. asp? edid=16466 * Factory process control Process innovation is the implementation of a new or significantly improved production or delivery method (including significant changes in technology, equipment and / or software) small changes or improvements to increase the capacity of production or service through increased production or logistics systemis very similar to those already in use, stop using it not be seen as a process, simple capital replacement or extension, change purely from changes in the prices of the factors of production, customization, regular seasonal and cyclical nature of the change, the new trading or significantly improved product innovation. http://www. innoviscop. com/en/definitions/process-innovation For example: Bajaj Auto Total Productive Maintenance as a means to create a safe and participative work environment, the goal is to eliminate the loss of all employees, to continue to enhance the capacity, flexibility, reliability and ability to process, resulting higher staff morale to improve the prof itability of the organization. The re-design of the processes, manufacturing approach was changed towards Lean Manufacturing (in lines of Toyota Production System). Moving Towards lean production Changes in the results and focus * Retain professional and critical process of internal and outsource the rest. * Multi-model assembly line and off-line settings. * Flexible machining centers quick-change modules and tools. * One-way flow of plant layout. Lean production plants in the chakan plant * Process quality assurance (testing). * Quality Assurance SPC error proofing. * Rationalization of suppliers to consolidate in the first-tier suppliers. * Direct line supply on the basis of pull systems (kanban). * Non-store materials and products promising. Multi-skilled labor, self-monitoring and self-certification. TPM (Total Productivity Management), a Japanese methodology a SPC (Statistical process Control), manufacturing operation. http://www. scribd. com/doc/22572622/Bajaj-Auto * Market ingDesign A closer look shows that about 40% of the R D expenditures original equipment manufacturers and suppliers of all investments into innovation, never let the bike or never produced in sufficient quantities, due to the lack of market acceptance. Remaining 60% to 20% of necessary serial development. Another 20% is to fulfill the law of innovation, but does not add to the unique nature of the product. Under normal circumstances, these innovations do not pay off. This makes 20% of the profitable innovation investment, leaving only a small. More and more technology intense fighting in the sweet spot. Moment only about 10% of the development of automotive technology has the potential to become a blockbuster innovation. These technologies combine the two most relevant categories: the first category, the market potential is huge, including the purpose of the function, customer recognition, compliance and price level. Other classes, the high degree of innovation, the establishment of the technical differences in the market, better protection of intellectual property rights, high profits and long-term harvest. http://www. oliverwyman. com/pdf_files/CarInnovation2015_engl. pdf http://www. oliverwyman. com/pdf_files/CarInnovation2015_engl. pdf 3. What are the challenges when deployment of this innovation? (20%) Define the type of innovation use and how have they been deployed. Product innovation and challenges Write on the challenges encountered by the company when they introduced innovation. How are they overcome. What is the success todate? Compare with the previous before innovation. Support with evidence. Occupy wheeler market in India three years later, at the end of 1999, BAL consumer preferences change from the four-stroke motorcycles, motorcycle engines and forecast that this trend will continue in a higher scale. Motorcycle Sales in 2001 decreased by 41%, which is a real threat to the existence of BAL. A new set of emission standards (equivalent to Euro II emission standards) into force in 2000 two-stroke gasoline engine. Therefore, the scooters out of favor with the two-stroke engine. Applying the modified model proposed above, Bajaj Auto was losing market share due to change in consumer preferences, development of new market segments, and the availability of better products and scooters manufactured by their competitors. In the first step, the President of company Rahul Bajaj which is a change agent also identified the need for change suggested by Kurt Lewin, the current situation of making AIR hired conscious problems, a performance gap and the need for change. At the same time, he was commissioned and provided new leadership roles to the younger generation such as Rajiv Bajaj (Managing Director). In an attempt to regain market share, the company increased its production by 67. 6% in 2001 as a production motorcycle GEARED scooters fell by 44%. By 2001, the company was making as many as motorcycle gear Couple of Challenges Bajaj auto faces in between the ongoing process of innovation like lake of finance, public demand etc. The biggest challenge Bajaj auto faces is to introduce new face product in the market for which Bajaj auto is not recognized in the market, problem was hesitating will customer like the innovation or not. The second thing making barriers in doing innovation is searching for knowledge employees. Bajaj find very difficult in searching for well skilled labor and even in molding the resident employees in the changing and innovating procedure in introducing new product. Because the stage was very crucialfor company when they started applying innovation even competitors was very aggregative in doing the same so company was left with no other option then creating successful innovation. Played an important role in the success of this phase of the leadership qualities change agent change. Change agent in the chair, the current market environment analysis and to identify the importance of change, in order to maintain market share and bring success on the road to pull Hu Erbaguji, who is our mission. He figured out in different areas, such as the implementation of paragraph cruise segment, the high-end market, the best, etc. He also introduced into the company of young people, to give them more power to create customer surveys and general production requirements the idea is very important in a highly competitive market. Time and again, the 500 R and huge after the siege. Bajaj Auto Limiteds portfolio, this change, these changes in a very short time after launched a new version of the motorcycle in every aspect, as part of the implementation of the Boxer and character, the destroyer cruise segment push, the Avengers and found in the high-end market, the motorcycle industry in India, which is a huge success. This shift public by Bajaj scooter motorcycle thinking stereotype, especially the new generation, who are looking for more performance and stylish bike caused a huge impact. The turning point in this process of change is the introduction of the product, Knock and DTSI technology, to help them capture their names under the two-wheeler market, and victory over their rivals Hero Honda. In June 2006, the company announced its plans to increase the production capacity from 3. 5 million units in 2009 to 5. 1 million units a year, of which two-wheelers is 4. 6 million units of capacity. According to their plan, they recently launched 220cc variant of its popular pulsar motorcycle. 004 Bajaj Auto to change their old identity and create a new logo and brand line, in order to update its new brand identity. This proved something of a visual help to clarify the organization needs to move in the direction (Cote, 2007). These visions and their achievements, the stability of the organization in a new state of equilibrium. http://www. ukessays. com/essays/india/bajaj-auto-limited. php 4. Evaluate Business Success (40%) Compare the before implementation ( market share/p osition/revenue/process/structure/strategies etc) to today’s outcome. Contrast them in terms of your writing ( theories you apply). Product innovation DTSi technology DTS-I A patented technology, achieved the pulsar follow road, the R D lab bike competition. In the heart of each pulsar is one of the countrys most advanced engine technology. DTS-i system. A technological marvel to ensure the highest performance, lowest consumption and emission levels possible. We will be happy to let a Pulsar maniac like you to know this breakthrough technology behind the secret of the pulsar. DTS-i engine Dual-spark ignition Normal ignition system has a single spark plug. Spark-generated flame front will take some time to reach the entire combustion chamber. Therefore, the combustion of the air fuel mixture is slow and incomplete. The case of two spark plugs, both spark plugs fire simultaneously. This simultaneous firing and eddy current, in the complete combustion of the air fuel mixture results. This action is the DTS-i digital control system (dual spark plug Smart CDI, TRICS III) Interests -Complete combustion of the air fuel mixture without sacrificing mileage output case, gives the maximum power. To ensure that the emissions of environmentally friendly DTS-i engine TRICS III Power and torque requirements constantly change, depending on the rider cruising, acceleration or high speed / maximum speed. The throttle response ignition control system III is an intelligent system that can quickly adapt to the ignition time, in order to adapt to different riding characteristics. Interests: TRICS III will help to achieve a good balance between the low-to mid-range torque and top-end power. This helps to easily ride in different conditions, such as flyovers, hilly terrain, dense traffic and highway cruising The TRICS III patent Bajaj Motors Limited DTS-i engine Intelligent C. D. I. Intelligent capacitor discharge ignition contains a microprocessor, which continuously sensing a different speed and the engine load, and by changing the ignition timing in response. The memory of the microprocessor together work with TRICSIII system, provide optimum ignition timing for any given engine speed, thereby obtaining the best combustion performance. Interests: Improve fuel efficiency and reduce engine noise and vibration, smoother power delivery. Bajaj Autos patent Smart CDI DTS-i engine EXHAUSTEC Exhaust is a device that is registered in the exhaust system. TEC representative of torque expansion chamber. It is fitted into a tuning box (resonators) of the exhaust manifold The low speed area, ExhaustTEC helps to create a negative pressure pulse (vacuum) of the exhaust valve to suck the air fuel mixture into the more the intake valve opening the cylinder. Interests: ExhaustTEC produce high torque. Does not require frequent shifting of flow, as the vehicle, even in the lower speed higher gear pull capability. ExhaustTEC patented by Bajaj Auto Ltd. 4 VALVES The combustion chamber has 1/3 of the area covered by the valve head of a typical 2-valve engine, but an increase of more than 50% 4-valve head region. Also improved due to the flow passage area of the intake port and an exhaust valve port / channel. This is conducive to the induction of more the amount of charge (air fuel mixture), and all the combustion gas of the combustion chamber is evacuated to ensure faster, cleaner and more efficient combustion. This engine has two intake and 2 1, 2-valve engine into a gas and the exhaust valve of the exhaust valve. These valves are small compared to the 2-valve engine, light weight. 4 valves (two intake and two exhaust valves), to improve the breathing method the engines intake and exhaust process†¦ PULSAR CLASSIC 2000 2001 October 2001 The nineties witnessed and generation was born. Work hard and party hard, Western and Indian values. The calm young Indians, masculine, stylish, well-deserved different. But they get a 100cc commuter bike. Changedforever in 2001. The first generation of pulsar is a huge success. It is not only the introduction of a new motorcycle, but also to create a new dimension performance. When the family to discuss mileage, pulsar riders start talking about torque, rebound power weight ratio. With pulsars, the bike no longer just a means of transport, rather than the person with the machine between the relationships began to be forged. Pulsar launch two variants, 150 ml and 180 ml, is indeed the man† PULSAR UG1 2002 2003 October 2003 Since the time of its launch pulsar ruled the heart of this country has been the rule of the road, and its first upgrade. Sold more than three times higher than competitive cycling, the pulsar is a rapidly bad boy on the block. Revolutionary DTS-i technology, introduced in the the excessive competition pulsar bike, it still has a clear competitive advantage. DTS-Is advertising campaign, along with the launch of this generation pulsar also redefined the Indian motorcycle ad This is the first bike ads show one wheel off the ground bike irreverent image pulsar was born. Increase power to 16 and 13 PS 180 and 150, respectively. PULSAR UG2 2004 2005 November 2004 Each pulsar upgrade two aspects styling and technology. Significant change at the same time, each time re-defined section. The game continuously toes try to keep at least just to keep behind the pulsar pulsarpulsar madman ahead. The UG2 many technology upgrades, launched during this period until the date of the pulsar, and a standard in the industry 17 alloy wheels, allowing greater suspension travel, nitrogen oxide suspension and the legendary ExhausTEC. In shape on the wider rear tire, tire environmentalists and all black cast Pulsar180. Improve the power of the 180 and 150, respectively, in 16. 5 and 13. 5 PS PULSAR UG3 2006 October 2006 Pulsar road in 2006, crossed the one million mark, many pulsar madman. Pulsar is no longer just a bike, which is a youth brand, and market leader in the field of sports, with a 50% market share, and that is to keep to the date. Our leadership, through hard work and toil Bajaj Auto Team UG3 number of the largest total upgrade, ushered in the digital age. This is the first time, digital odometer, backlight switch, self-cancel indicators, and LED taillights introduced. Multiple sensors and digital mixer bike riders overall performance, a lot of information, and promote additional power, to pulsars thrown confidence. The increased power of 14 PS 150 PULSAR200 DTS-I PULSAR220 DTS-FI 2007 2008 February 2007 Indias first bike to break 200 ml obstacles on the road Pulsar 200 and 220. Change and Pulsar bike in India once again lead this revolution. Although 200CC is equipped with a carburettor, 220cc fuel injected! These babies might throw downs power of 18 and 20 ps, and blatantly oil cooler. 220 also have front and rear disc brake. PULSAR UG4 2009 May 2009 On Road 2,000,000 pulsar delivered in three years, more than 3 million of the total number of pulsars India. This time to the sports field is also extended to the more than 15 brands from all the major manufacturers, such as Honda, Yamaha, Hero Honda, TVS. The segment accounted for about 17% of the total motorcycle sales, pulsar, its 50% market share, it still maintained a half contribution. 150 the clip-handle and 15Ps of power in February 2010. January 2010 Looking for the legendary 200 customers and the general public needs Pulsar220 also launched a deep-rooted in the minds of a Street Fighter avatar. The fastest growing segment in the motorcycle industry, 50% of the market share, more than 4 million of the pulsar is sold. Exports to over 30 countries, the pulsar is by far the biggest brands in the Indian motorcycle and eyes hegemony in the world soon. ttp://mypulsar. com/technology. aspx http://mypulsar. com/history. aspx Process Innovation Model in the late 1990s, the early 2000s will lean production * economic situation, development through liberalization * Fierce competition. * Improve the customers wishes More models and upgrades. Third level * 110% of the to do the project in the late 1990s, Bajaj Auto Lean Manufacturing at Chakan Plant * Re-design process, manufacturing methods, and change to * lean production (Toyota Production System) line. * TPM (Total Productive Management), Japans methods and SPC (statistical process control) manufacturing operations. Moving towards Lean Manufacturing * The result of the change and focus * Retention of professional and critical process of internal and outsource the rest. * Set more model assembly line and off line. * Flexible machining centres quick-change modules and tools. * The plant layout * The single one-way flow. Lean Manufacturing at Chakan Plant * The process of quality assurance (testing). * By SPC error proofing quality assurance. * Rationalization of suppliers to consolidate in a supplier. * Directly online supply based on pull systems (kanban). Of shops promising material and products. * Multi-skilledlabor force, self-monitoring and self-certification. Towards lean manufacturing a huge change * This is a huge change. * Bajaj car driving through t he railways new factory. * (About 20 km away from Pune plant) * A small number of major suppliers of railway factory. * Improve our near these plants, which gives a good advantage. Lean Manufacturing at Chakan Plant * The project 110% was supported by Project 110% IT. * Bajaj Auto implemented SAP ERP. * Towards lean manufacturing IT support * supply chain processes MRP planning schedule * Schedule SAP portal vendors visibility. * that is based on daily necessities supply lines consumption. * The introduction of the E-Kanban. * supplies sequencing the paint shop, assembly line production schedule synchronization. * JIT supply (our request) the major suppliers * Components and sub-assemblies in accordance with JIT requirements * Supply, in 2-4 hours’ time interval. Towards Lean Manufacturing Electronic Kanban * material supply and service revenue * Create on the the electronic billboards line the consumption in the system. Suppliers establish open E-Kanban quantity invoice. * verify invoice after upload to our SAP system * The use of Internet-based EDI. * Unique ASN (advanced shipping notice), each power supply. * EDI numbers is what we call * Then printed on the invoice number of bar code EDI. * Forwarded by scanning EDI No. materials in plants * The creation of genetic resources without the need for manual data entry. Towards lean manufacturing * Hair this lean supply process results. * productivity per employee Vehicles increase10 ten * Component inventory reducing the stock of the week and a half shift. finished goods inventory to reduce the stock of one to three days * Quality improvements Improved 20000 PPM 2000 PPM. * Truck turnaround time reduced four hours to half an hour. * The thethe Material United Nations load rate / class size increased to 150-350 load. * Improved the accuracy of the invoice data faster payment processing. * deployment portal vendors * Evaluation of the quality of power supply and PPM data visibility. * Invoice wise refused payment. * supplier of quality tracking supplier responsibility 5. Conclusion / Reflection (5%) Conclusion – should innovation be only once? Write and reflect your opinion. Studies have confirmed that all businesses are more innovative. The survey found that nearly 90% of companies believe that innovation is their priority. Concluded that the increasing importance of innovation, and increased significantly. In todays economic circumstances, innovation has become an important factor in the impact of strategic planning. It has been recognized, innovation and the creation of wealth. , Even if efficiency is crucial to the success of the enterprise, in the long run, it cannot sustain business growth. Today, more than ever, we need to innovate. Every organization and business is feeling the impact of globalization, migration, technological and knowledge revolutions, and  climate change  issuesInnovation will bring added value and to expand the employment base. Innovation is necessary in these difficult circumstances, improved quality of life. Innovation will make the world a better younger generation. http://www. paggu. com/getting-into-roots/what-is-innovation-why-innovation-is-important/ Proper citation is required. Assignment in report format. Words = 4,000. Innovation Report for Bajaj Essay Example Innovation Report for Bajaj Essay 1. A critical review of its overall business strategy. (15%) Introduction of the company The group was founded in 1926, from the height of the British independent movement in India has a glorious history. Bajaj Group is one of the top 10 commercial establishments in India. Its footprint across a wide range of industry sectors, including automobiles (two-wheelers and three-wheelers). The Groups flagship company, Bajaj Auto, is listed as the worlds fourth largest two-and three-wheeled motorcycle manufacturer Bajaj brand is well-known in several countries of Latin America, Africa, Middle East, South Asia and Southeast Asia. ttp://www. bajajauto. com/bajaj_corporate. asp * Company profile, (vision ,mission, brief history) Vision and Mission Statement Bajaj line of, vision and mission statement they defined its brand essence and brand value. The corporate brand is the visual expression of their own thoughts and actions convey their intent to continue to inspire confidence. The essence of their brand, the brand is the soul of the enterprise. They are doing their own brand value, its value learning, innovation, perfection, speed and transparency. Value Learning Learning is to how Bajaj ensure positive. This is a value; it contains a knowledge platform for building a moderately prosperous notice, reasonable and decisive action. Innovation Innovation is how Bajaj creating the future. This is a value, triggering significant beyond the pursuit of more than ordinary. Perfect Perfection Perfect is how Bajaj Jishu Li new standard. This is a value to show our determination, Excel, and efforts to establish a new benchmark, all the time. Speed Speed how Bajaj convey the clear conviction. This is a value; significant response reflects our commitment to our goals and process. Transparency Transparency is how Bajaj characteristics. It is a value worth through the credibility of integrity, trust sensitivity and loyalty through interdependence. http://corporatemissions. blogspot. sg/2007/10/bajaj-auto. html A Brief History Integrity, dedication, resourcefulness and determination to succeed, today is the characteristics of the group, often be traced back to its birth in those days the tireless dedication to a common cause. We will write a custom essay sample on Innovation Report for Bajaj specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Innovation Report for Bajaj specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Innovation Report for Bajaj specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Jamnalal Bajaj, founder of the Group, is a close friend and disciple of Mahatma Gandhi. In fact, Gandhi had by him and his son. This close relationship, deeply involved in his independence movement did not leave Jamnalal Bajaj too much time is spent in his new commercial enterprise. In 1942, his son, Kamalnayan Bajaj, then 27, took over the business rule. He is too close to Gandhis independence in 1947, his business is able to give his full attention. Kamalnayan Bajaj not only consolidated the Group, but also extended to a variety of production activities. The Rahul Erbaguji, Chairman of the Group, is responsible for the business in 1965. Under his leadership, the turnover of the Bajaj Autos flagship company from INR. 72 million INR. 120 billion, its expanding product portfolio and brand to find a global market. He is one of Indias most distinguished business leaders, his business acumen and entrepreneurial spirit to be respected and internationally. * Company current business situation of the company. as per the above chart company financial position is mush stable and in a strong shoes of profitability. ompany is growing and developing back to back year by year. thats the reason behind it; it started recognizing as Indias top two wheeler company and even company started globalizing very fast, it started creating footprints all over the world. before these last three years company face few number of looses thats the reason because of international crises. one of the another reason for these good business is its most challenging innova tive products and its products demand in the market, today customers wait for the innovative product of the company. Current product/technology/process/patent that the company is having. Product- Currently Bajaj auto deals in both two wheelers and three wheelers vehicles. Technology Take a long time, use DTSI technology; Bajaj introduced the three Terry Poole SPRAK plug technology spark plug in the part-load conditions for better fuel efficiency, provide unprecedented performance and efficiency and best combustion, and to ensure low emissions. Process Technology, this new status symbol Change a new, vibrant Bajaj Auto Is in close contact with customers, and believe in Speed nd innovation, to create excitement Through its products, focus on transparency. It is an identity, is to inspire confidence. It represents a new India Company. Patent Patent is in the two-wheeler sector product quality, technology up-gradation, customer service, changing environment http://www. universityessay s. com/example-essays/english-language/the-bajaj-auto. php http://www. universityessays. com/example-essays/english-language/the-bajaj-auto. php#ixzz2Dn3XEfa3 * Current industry (what is happening that can affect the business. Bajaj Auto introduced a new graphics engine as promised Bajaj India has launched the new 2012 models pulsars in January 2012. It was named pulsar 200ns of. It is cooled by the liquid 200cc engine of 23. 17 horsepower at 8000 rpm at 9500rpm for a maximum torque of 18. 3 nm. However, it is expected that Bajaj pulsar line to rise. The face-lift is very necessary, because the pulsar was launched nearly a decade ago. Anyway, 200ns pulsar is a new product; new exhaust layout is now below 200 Duke Engine. The pulsar 200ns new styling and technology. It has a new design alloy wheels, instrument panel, fuel tank and the side of the spoon. http://autos. maxabout. com/bikes/bajaj/pulsar-2008/pulsar-200 2. Why is it necessary for them to employ innovation into the company (20%) (Application of theory from your lectures is required. ) Your analysis on innovation will focus on any of the following within the MNC(select min 2 theories) You are expected to link /incorporate theories into the focus areas that you write. You are required to identify what is the issue that drives them to innovation. Thus you need to write on drivers to innovation. * Materials technology DTSI technology DTS-Fi wireless network connection and DTS-SI engine technology mother is very fuel-efficient. Engine technology also helps to reduce emissions and keep the environment clean and green. Technical innovations include new products and processes, product and process technology changes. If it has been on the market an innovation (product innovation) has been implemented. For example: Bajaj Pulsar 200 NS bike next technological innovation known as pulsars, it is found these days in Mumbai. Reveal of technology innovation Bajaj car in the pulsar 2001 season and release pulsar in the last edition of the 2009 season. The organization also proposed that all release occurred in the pulsar motorcycle. The pulsar 200 NS is a 4-valve pressure stage of technological innovation curiosity multiple technical innovation, providing better gas range and efficiency of the results. NS bare game. DTSI technology- Patented technologies pulsar follow road, the R D lab bike competition. In the Automotive industry, driven technology innovation in different parts of the vehicle, and this trend will continue to be observed in all the major areas such as chassis, powertrain, electronics and security, among others. Such technical developments will occur not just in these areas, the arrival of new modular assembly techniques will transform the court systems and methods together. http://www. anticiv. info/tag/technological-innovation/ http://stats. oecd. org/glossary/detail. asp? ID=2688 http://www. efytimes. com/e1/fullnews. asp? edid=16466 * Factory process control Process innovation is the implementation of a new or significantly improved production or delivery method (including significant changes in technology, equipment and / or software) small changes or improvements to increase the capacity of production or service through increased production or logistics systemis very similar to those already in use, stop using it not be seen as a process, simple capital replacement or extension, change purely from changes in the prices of the factors of production, customization, regular seasonal and cyclical nature of the change, the new trading or significantly improved product innovation. http://www. innoviscop. com/en/definitions/process-innovation For example: Bajaj Auto Total Productive Maintenance as a means to create a safe and participative work environment, the goal is to eliminate the loss of all employees, to continue to enhance the capacity, flexibility, reliability and ability to process, resulting higher staff morale to improve the prof itability of the organization. The re-design of the processes, manufacturing approach was changed towards Lean Manufacturing (in lines of Toyota Production System). Moving Towards lean production Changes in the results and focus * Retain professional and critical process of internal and outsource the rest. * Multi-model assembly line and off-line settings. * Flexible machining centers quick-change modules and tools. * One-way flow of plant layout. Lean production plants in the chakan plant * Process quality assurance (testing). * Quality Assurance SPC error proofing. * Rationalization of suppliers to consolidate in the first-tier suppliers. * Direct line supply on the basis of pull systems (kanban). * Non-store materials and products promising. Multi-skilled labor, self-monitoring and self-certification. TPM (Total Productivity Management), a Japanese methodology a SPC (Statistical process Control), manufacturing operation. http://www. scribd. com/doc/22572622/Bajaj-Auto * Market ingDesign A closer look shows that about 40% of the R D expenditures original equipment manufacturers and suppliers of all investments into innovation, never let the bike or never produced in sufficient quantities, due to the lack of market acceptance. Remaining 60% to 20% of necessary serial development. Another 20% is to fulfill the law of innovation, but does not add to the unique nature of the product. Under normal circumstances, these innovations do not pay off. This makes 20% of the profitable innovation investment, leaving only a small. More and more technology intense fighting in the sweet spot. Moment only about 10% of the development of automotive technology has the potential to become a blockbuster innovation. These technologies combine the two most relevant categories: the first category, the market potential is huge, including the purpose of the function, customer recognition, compliance and price level. Other classes, the high degree of innovation, the establishment of the technical differences in the market, better protection of intellectual property rights, high profits and long-term harvest. http://www. oliverwyman. com/pdf_files/CarInnovation2015_engl. pdf http://www. oliverwyman. com/pdf_files/CarInnovation2015_engl. pdf 3. What are the challenges when deployment of this innovation? (20%) Define the type of innovation use and how have they been deployed. Product innovation and challenges Write on the challenges encountered by the company when they introduced innovation. How are they overcome. What is the success todate? Compare with the previous before innovation. Support with evidence. Occupy wheeler market in India three years later, at the end of 1999, BAL consumer preferences change from the four-stroke motorcycles, motorcycle engines and forecast that this trend will continue in a higher scale. Motorcycle Sales in 2001 decreased by 41%, which is a real threat to the existence of BAL. A new set of emission standards (equivalent to Euro II emission standards) into force in 2000 two-stroke gasoline engine. Therefore, the scooters out of favor with the two-stroke engine. Applying the modified model proposed above, Bajaj Auto was losing market share due to change in consumer preferences, development of new market segments, and the availability of better products and scooters manufactured by their competitors. In the first step, the President of company Rahul Bajaj which is a change agent also identified the need for change suggested by Kurt Lewin, the current situation of making AIR hired conscious problems, a performance gap and the need for change. At the same time, he was commissioned and provided new leadership roles to the younger generation such as Rajiv Bajaj (Managing Director). In an attempt to regain market share, the company increased its production by 67. 6% in 2001 as a production motorcycle GEARED scooters fell by 44%. By 2001, the company was making as many as motorcycle gear Couple of Challenges Bajaj auto faces in between the ongoing process of innovation like lake of finance, public demand etc. The biggest challenge Bajaj auto faces is to introduce new face product in the market for which Bajaj auto is not recognized in the market, problem was hesitating will customer like the innovation or not. The second thing making barriers in doing innovation is searching for knowledge employees. Bajaj find very difficult in searching for well skilled labor and even in molding the resident employees in the changing and innovating procedure in introducing new product. Because the stage was very crucialfor company when they started applying innovation even competitors was very aggregative in doing the same so company was left with no other option then creating successful innovation. Played an important role in the success of this phase of the leadership qualities change agent change. Change agent in the chair, the current market environment analysis and to identify the importance of change, in order to maintain market share and bring success on the road to pull Hu Erbaguji, who is our mission. He figured out in different areas, such as the implementation of paragraph cruise segment, the high-end market, the best, etc. He also introduced into the company of young people, to give them more power to create customer surveys and general production requirements the idea is very important in a highly competitive market. Time and again, the 500 R and huge after the siege. Bajaj Auto Limiteds portfolio, this change, these changes in a very short time after launched a new version of the motorcycle in every aspect, as part of the implementation of the Boxer and character, the destroyer cruise segment push, the Avengers and found in the high-end market, the motorcycle industry in India, which is a huge success. This shift public by Bajaj scooter motorcycle thinking stereotype, especially the new generation, who are looking for more performance and stylish bike caused a huge impact. The turning point in this process of change is the introduction of the product, Knock and DTSI technology, to help them capture their names under the two-wheeler market, and victory over their rivals Hero Honda. In June 2006, the company announced its plans to increase the production capacity from 3. 5 million units in 2009 to 5. 1 million units a year, of which two-wheelers is 4. 6 million units of capacity. According to their plan, they recently launched 220cc variant of its popular pulsar motorcycle. 004 Bajaj Auto to change their old identity and create a new logo and brand line, in order to update its new brand identity. This proved something of a visual help to clarify the organization needs to move in the direction (Cote, 2007). These visions and their achievements, the stability of the organization in a new state of equilibrium. http://www. ukessays. com/essays/india/bajaj-auto-limited. php 4. Evaluate Business Success (40%) Compare the before implementation ( market share/p osition/revenue/process/structure/strategies etc) to today’s outcome. Contrast them in terms of your writing ( theories you apply). Product innovation DTSi technology DTS-I A patented technology, achieved the pulsar follow road, the R D lab bike competition. In the heart of each pulsar is one of the countrys most advanced engine technology. DTS-i system. A technological marvel to ensure the highest performance, lowest consumption and emission levels possible. We will be happy to let a Pulsar maniac like you to know this breakthrough technology behind the secret of the pulsar. DTS-i engine Dual-spark ignition Normal ignition system has a single spark plug. Spark-generated flame front will take some time to reach the entire combustion chamber. Therefore, the combustion of the air fuel mixture is slow and incomplete. The case of two spark plugs, both spark plugs fire simultaneously. This simultaneous firing and eddy current, in the complete combustion of the air fuel mixture results. This action is the DTS-i digital control system (dual spark plug Smart CDI, TRICS III) Interests -Complete combustion of the air fuel mixture without sacrificing mileage output case, gives the maximum power. To ensure that the emissions of environmentally friendly DTS-i engine TRICS III Power and torque requirements constantly change, depending on the rider cruising, acceleration or high speed / maximum speed. The throttle response ignition control system III is an intelligent system that can quickly adapt to the ignition time, in order to adapt to different riding characteristics. Interests: TRICS III will help to achieve a good balance between the low-to mid-range torque and top-end power. This helps to easily ride in different conditions, such as flyovers, hilly terrain, dense traffic and highway cruising The TRICS III patent Bajaj Motors Limited DTS-i engine Intelligent C. D. I. Intelligent capacitor discharge ignition contains a microprocessor, which continuously sensing a different speed and the engine load, and by changing the ignition timing in response. The memory of the microprocessor together work with TRICSIII system, provide optimum ignition timing for any given engine speed, thereby obtaining the best combustion performance. Interests: Improve fuel efficiency and reduce engine noise and vibration, smoother power delivery. Bajaj Autos patent Smart CDI DTS-i engine EXHAUSTEC Exhaust is a device that is registered in the exhaust system. TEC representative of torque expansion chamber. It is fitted into a tuning box (resonators) of the exhaust manifold The low speed area, ExhaustTEC helps to create a negative pressure pulse (vacuum) of the exhaust valve to suck the air fuel mixture into the more the intake valve opening the cylinder. Interests: ExhaustTEC produce high torque. Does not require frequent shifting of flow, as the vehicle, even in the lower speed higher gear pull capability. ExhaustTEC patented by Bajaj Auto Ltd. 4 VALVES The combustion chamber has 1/3 of the area covered by the valve head of a typical 2-valve engine, but an increase of more than 50% 4-valve head region. Also improved due to the flow passage area of the intake port and an exhaust valve port / channel. This is conducive to the induction of more the amount of charge (air fuel mixture), and all the combustion gas of the combustion chamber is evacuated to ensure faster, cleaner and more efficient combustion. This engine has two intake and 2 1, 2-valve engine into a gas and the exhaust valve of the exhaust valve. These valves are small compared to the 2-valve engine, light weight. 4 valves (two intake and two exhaust valves), to improve the breathing method the engines intake and exhaust process†¦ PULSAR CLASSIC 2000 2001 October 2001 The nineties witnessed and generation was born. Work hard and party hard, Western and Indian values. The calm young Indians, masculine, stylish, well-deserved different. But they get a 100cc commuter bike. Changedforever in 2001. The first generation of pulsar is a huge success. It is not only the introduction of a new motorcycle, but also to create a new dimension performance. When the family to discuss mileage, pulsar riders start talking about torque, rebound power weight ratio. With pulsars, the bike no longer just a means of transport, rather than the person with the machine between the relationships began to be forged. Pulsar launch two variants, 150 ml and 180 ml, is indeed the man† PULSAR UG1 2002 2003 October 2003 Since the time of its launch pulsar ruled the heart of this country has been the rule of the road, and its first upgrade. Sold more than three times higher than competitive cycling, the pulsar is a rapidly bad boy on the block. Revolutionary DTS-i technology, introduced in the the excessive competition pulsar bike, it still has a clear competitive advantage. DTS-Is advertising campaign, along with the launch of this generation pulsar also redefined the Indian motorcycle ad This is the first bike ads show one wheel off the ground bike irreverent image pulsar was born. Increase power to 16 and 13 PS 180 and 150, respectively. PULSAR UG2 2004 2005 November 2004 Each pulsar upgrade two aspects styling and technology. Significant change at the same time, each time re-defined section. The game continuously toes try to keep at least just to keep behind the pulsar pulsarpulsar madman ahead. The UG2 many technology upgrades, launched during this period until the date of the pulsar, and a standard in the industry 17 alloy wheels, allowing greater suspension travel, nitrogen oxide suspension and the legendary ExhausTEC. In shape on the wider rear tire, tire environmentalists and all black cast Pulsar180. Improve the power of the 180 and 150, respectively, in 16. 5 and 13. 5 PS PULSAR UG3 2006 October 2006 Pulsar road in 2006, crossed the one million mark, many pulsar madman. Pulsar is no longer just a bike, which is a youth brand, and market leader in the field of sports, with a 50% market share, and that is to keep to the date. Our leadership, through hard work and toil Bajaj Auto Team UG3 number of the largest total upgrade, ushered in the digital age. This is the first time, digital odometer, backlight switch, self-cancel indicators, and LED taillights introduced. Multiple sensors and digital mixer bike riders overall performance, a lot of information, and promote additional power, to pulsars thrown confidence. The increased power of 14 PS 150 PULSAR200 DTS-I PULSAR220 DTS-FI 2007 2008 February 2007 Indias first bike to break 200 ml obstacles on the road Pulsar 200 and 220. Change and Pulsar bike in India once again lead this revolution. Although 200CC is equipped with a carburettor, 220cc fuel injected! These babies might throw downs power of 18 and 20 ps, and blatantly oil cooler. 220 also have front and rear disc brake. PULSAR UG4 2009 May 2009 On Road 2,000,000 pulsar delivered in three years, more than 3 million of the total number of pulsars India. This time to the sports field is also extended to the more than 15 brands from all the major manufacturers, such as Honda, Yamaha, Hero Honda, TVS. The segment accounted for about 17% of the total motorcycle sales, pulsar, its 50% market share, it still maintained a half contribution. 150 the clip-handle and 15Ps of power in February 2010. January 2010 Looking for the legendary 200 customers and the general public needs Pulsar220 also launched a deep-rooted in the minds of a Street Fighter avatar. The fastest growing segment in the motorcycle industry, 50% of the market share, more than 4 million of the pulsar is sold. Exports to over 30 countries, the pulsar is by far the biggest brands in the Indian motorcycle and eyes hegemony in the world soon. ttp://mypulsar. com/technology. aspx http://mypulsar. com/history. aspx Process Innovation Model in the late 1990s, the early 2000s will lean production * economic situation, development through liberalization * Fierce competition. * Improve the customers wishes More models and upgrades. Third level * 110% of the to do the project in the late 1990s, Bajaj Auto Lean Manufacturing at Chakan Plant * Re-design process, manufacturing methods, and change to * lean production (Toyota Production System) line. * TPM (Total Productive Management), Japans methods and SPC (statistical process control) manufacturing operations. Moving towards Lean Manufacturing * The result of the change and focus * Retention of professional and critical process of internal and outsource the rest. * Set more model assembly line and off line. * Flexible machining centres quick-change modules and tools. * The plant layout * The single one-way flow. Lean Manufacturing at Chakan Plant * The process of quality assurance (testing). * By SPC error proofing quality assurance. * Rationalization of suppliers to consolidate in a supplier. * Directly online supply based on pull systems (kanban). Of shops promising material and products. * Multi-skilledlabor force, self-monitoring and self-certification. Towards lean manufacturing a huge change * This is a huge change. * Bajaj car driving through t he railways new factory. * (About 20 km away from Pune plant) * A small number of major suppliers of railway factory. * Improve our near these plants, which gives a good advantage. Lean Manufacturing at Chakan Plant * The project 110% was supported by Project 110% IT. * Bajaj Auto implemented SAP ERP. * Towards lean manufacturing IT support * supply chain processes MRP planning schedule * Schedule SAP portal vendors visibility. * that is based on daily necessities supply lines consumption. * The introduction of the E-Kanban. * supplies sequencing the paint shop, assembly line production schedule synchronization. * JIT supply (our request) the major suppliers * Components and sub-assemblies in accordance with JIT requirements * Supply, in 2-4 hours’ time interval. Towards Lean Manufacturing Electronic Kanban * material supply and service revenue * Create on the the electronic billboards line the consumption in the system. Suppliers establish open E-Kanban quantity invoice. * verify invoice after upload to our SAP system * The use of Internet-based EDI. * Unique ASN (advanced shipping notice), each power supply. * EDI numbers is what we call * Then printed on the invoice number of bar code EDI. * Forwarded by scanning EDI No. materials in plants * The creation of genetic resources without the need for manual data entry. Towards lean manufacturing * Hair this lean supply process results. * productivity per employee Vehicles increase10 ten * Component inventory reducing the stock of the week and a half shift. finished goods inventory to reduce the stock of one to three days * Quality improvements Improved 20000 PPM 2000 PPM. * Truck turnaround time reduced four hours to half an hour. * The thethe Material United Nations load rate / class size increased to 150-350 load. * Improved the accuracy of the invoice data faster payment processing. * deployment portal vendors * Evaluation of the quality of power supply and PPM data visibility. * Invoice wise refused payment. * supplier of quality tracking supplier responsibility 5. Conclusion / Reflection (5%) Conclusion – should innovation be only once? Write and reflect your opinion. Studies have confirmed that all businesses are more innovative. The survey found that nearly 90% of companies believe that innovation is their priority. Concluded that the increasing importance of innovation, and increased significantly. In todays economic circumstances, innovation has become an important factor in the impact of strategic planning. It has been recognized, innovation and the creation of wealth. , Even if efficiency is crucial to the success of the enterprise, in the long run, it cannot sustain business growth. Today, more than ever, we need to innovate. Every organization and business is feeling the impact of globalization, migration, technological and knowledge revolutions, and  climate change  issuesInnovation will bring added value and to expand the employment base. Innovation is necessary in these difficult circumstances, improved quality of life. Innovation will make the world a better younger generation. http://www. paggu. com/getting-into-roots/what-is-innovation-why-innovation-is-important/ Proper citation is required. Assignment in report format. Words = 4,000.

Art Proposal essays

Art Proposal essays Through history entertainment has been a very important part of life, from the early days of Egypt to our busy modern schedule in the twenty- first century. During the years entertainment has changed and molded who we are and what our society is like. For the past sixty years board games and card decks of all kinds have been produced to teach, excite and entertain everyone. Parents of my generation and the generation before have sat around tables playing Checkers, Chess, Cards, Monopoly, and other classic games to keep amused. Games provide so much by doing so little in our lives, games help to create a stable foundation in childrens lives. The game and theme I have chosen is Memory in the style of the pop artist Andy Warhol. Memory is a picture based card game, in which the cards are placed in no particular order face down on a table or floor. The object of the game is to take turns flipping one card at a time until you are sure you have seen both of the matching set and recalling them to the other player. At the end of the game, the player with the most cards wins. The pictures used for the deck of Memory cards will be reproductions of Andy Warhols work, and some of my own in Andys style. Simple, interesting, and fun. Three words that describe the game that took up a good part of my childhood. It was played day in and day out and still remains the most favorite game in my memory. Because of this I decided to make a version of my own. The same rules and same idea, but new pictures and more exciting content, a theme that would interest an older crowd and keep the game amusing and attractive for a different audience. I feel that a game like Memory isnt just an excuse to have fun, but an excuse to exercise your brain and learn. To ...

Henry Ford - Biography

Henry Ford - Biography Who Was Henry Ford? assembly line Dates: July 30, 1863 April 7, 1947 Henry Fords Childhood Ford, the Tinkerer Steam Engines It was during this time that Henry met Clara Bryant. When they married in 1888, Henrys father gave him a large piece of land on which Henry built a small house, a sawmill, and a shop to tinker in. Fords Quadricycle Founding the Ford Motor Company Believing that publicity would encourage people to by cars, Henry started building and driving his own racecars. It was at racetracks that Henry Fords name first became well known. However, the average person didnt need a racecar, they wanted something reliable. While Ford worked on designing a reliable car, investors organized a factory. It was this third attempt at a company to make automobiles, the Ford Motor Company, that succeeded. On July 15, 1903, the Ford Motor Company sold its first car, a Model A, to Dr. E. Pfennig, a dentist, for $850. Ford continually worked to improve the cars design and soon created Models B, C, and F. The Model T Since the Model T quickly became so popular that it was selling faster than Ford could manufacture them, Ford began looking for ways to speed up the manufacturing. In 1913, Ford added a motorized assembly line in the plant. The motorized conveyor belts moved the car to the workers, who would now each add one part to the car as the car passed them. The motorized assembly line significantly cut the time, and thus cost, of manufacturing each car. Ford passed on this savings to the customer. Although the first Model T was sold for $850, the price eventually dropped to under $300. Ford produced the Model T from 1908 until 1927, building 15 million cars. Ford Advocates for His Workers Henry Ford Ford also created a sociological department in the factory that would examine workers lives and try to make it better. Since he believed he knew what was best for his workers, Henry was very much against unions. Anti-Semitism Dearborn Independent The Death of Henry Ford For decades, Henry Ford and his only child, Edsel, worked together at the Ford Motor Company. However, friction between them steadily grew, based nearly entirely on differences of opinion over how the Ford Motor Company should be run. In the end, Edsel died from stomach cancer in 1943, at age 49. In 1938 and again in 1941, Henry Ford suffered strokes. On April 7, 1947, four years after Edsels death, Henry Ford passed away at age 83.

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

Others - Essay Example Relative to other companies, we provide a flexible way of working, employees can choose a time to finish the work at home. In addition, our company also saves on the cost of renting office space and daily maintenance. This is because our devoted staffs are allowed to carry out their tasks in the comfort of their houses. In this case, the company makes provision for all logistic requirements to facilitate workers in their day to day activities. The world’s economic system is fast changing due to the roles that international trade and investment is playing in the system of economic development. Due to cultural and language barrier in terms of trade, investment and cooperation, emerging concepts of translation services has led to a number of successful international trade negotiations. Consistent with the long-standing predictions, available data reveals an increase in international trade negotiations across the globe. Many States and policymakers have already recognized the importance of cultural competence in facilitating effective communication during negotiations. Internet-based translation has become increasingly popular even though a pivot translation service is required to fully realize the translation between non-English languages through cascading different translation services. It is with great effort that e-translate have made it their priority to develop a content-based coordination that aims at maintaining the consistency of the word meaning during the translation services. The number of languages used in internet has shown a rapid increment. For instance, those using English comprise of 40 percent of all the internet users, Asian language users represent 26 percent, European language users represent more than 30 percent excluding English users, while other languages users represent nearly 20 percent. This trend has a greater influence on the requirement of translation services among non-English language users, as well as between

Location or existence of Atlantis Research Paper

Location or existence of Atlantis - Research Paper Example Whatever form these stories may take, they often invite debate, discussion, and controversy as scholars, historians, archaeologists, and academicians try to determine their merits. An example is the Epic of Gilgamesh that tells the story of the Great Flood, which is very eerily similar to the biblical stories of a similar deluge and the survival of a few people such as Noah and his Ark. This epic tells of the existence of a real king named Gilgamesh in the kingdom of Uruk in ancient Sumeria at around 2700 B.C.E. as proven by archaeologists. It so happened physical records of his ancient reign were found in ruins in today's modern Iraq. Another interesting epic is that of Saga of the Volsunga Clan which is partly based from the barbarian invasions during the so-called Great Migration Period (circa 400-800 A.D.) back in Central Europe when the Roman Empire was attacked by Goths, Vandals, Saxons, the Lombards, and Franks who were followed later on by the Vikings, Huns, Slavs, and Norman s. The Volsunga clan story may have been the basis of another more famous epic, which is the Epic of the Nibelungenlied of middle-high German period. This paper talks on a controversy that is not yet resolved satisfactorily, the existence and location of the lost world of Atlantis. Discussion (Section 2) The on-going controversy about Atlantis may never die down or eventually resolved because it is shrouded in mystery and obscurity. The absence of any physical evidence about its actual location or even its previous existence in history cannot be ascertained one hundred percent despite the best efforts of archaeologists and historians alike. However, Atlantis has an enduring attraction to some people who insist it had actually existed in human history while a few others also debunk this theory as far-fetched and a mere product of an active imagination. Whatever is the truth about Atlantis, various theories had been put forward by eminent people to advance their own beliefs about it a nd this paper examines five such theories. In particular, this brief essay discusses the merits of each theory while categorizing the theories into either belonging to the group which proves or disproves the very existence of a real Atlantis in the distant past. Before the probable location of Atlantis can be established, it is necessary to first determine whether Atlantis is real or not, which is decidedly a right way to discuss a topic as controversial as Atlantis. But before discussing its most likely location, it is extremely helpful to put things in context and perspective so a preliminary discussion is a necessity whether Atlantis is real or just a figment of imagination, a work of fiction, anything fantastical that was made up, invented, imagined, or fabricated by a brilliant mind. Atlantis comes from the Greek word meaning â€Å"an island of Atlas† as it was thought to be a gift given by the Greek gods to Poseidon. Atlas is one of titans in the Greek pantheon of mytho logy, the one usually seen carrying the Earth (depicted as a globe on his shoulders). Poseidon is one of the twelve gods on Mount Olympus whose domain was the oceans, and he is alternatively called as â€Å"God of the Sea† among ancient Greeks. The history or a story about Atlantis myth can be traced to Greek philosopher Plato who had used it in his stories. This is because Plato

Jacques Family Case study Essay Example for Free

Jacques Family Case study Essay Domestic violence has several mitigating approaches, and the health care approach has proved to be fruitful. By gathering feedback from victims of domestic violence in a health care setting, has helped to create awareness as well as demystify the phenomenon eventually helping to create more accurate intervention strategies (Enos et al, 2004.p 4). It has also been noted from studies that children who grow up in homes where they experience domestic violence are likely to be perpetrators of the same in their adult life (National Resource Centre on Domestic Violence, 2002. p 6). The co-occurrence of child abuse and intimate partner violence is an issue that needs to be professionally addressed. The impact on domestic violence on children cannot be explained by one theory. Assumptions about the Jacques family There is a co-occurrence of child abuse and intimate partner violence in the Jacques family. This is seen when Jacques physically abuses Samuel when the boy tries to help his mother from the father’s attack. Jacques verbally abuses Samuel, as seen in the case study. The husband, Jean Jacques is an unstable man, with an inclination towards violence. This is likely to be a medical condition. Jean has a manipulative attitude and domineering towards his family. Marie suffers from depression as a result of the continued violence and a feeling of having wasted her life by not pursuing the nursing course. Marie has had a troubled childhood and early adulthood as is stated in the case study. Her father physically abused her. Samuel’s father actually abused her sexually as evidenced by her feelings to go for an abortion. Marie is basically a responsible and intelligent woman. Marie has not contributed to the violence in the family in any way. The family has lost close ties with their paternal relatives/extended family. The children feel a sense of insecurity towards their father and suffer from various behavioral/ attitudinal disorders (National Resource Centre on Domestic Violence, 2002. p 7). Data, facts, information, and observations about this family Jean Jacques is an unstable man, with an inclination towards violence is evidenced by the fact that when Samuel tries to intervene to save his mother Jean violently throws the boy across the room and ignores the cries of the little children Valerie and Miranda. The fact that jean used a baseball bat to batter his wife proves he has an inclination towards violence as well as being of relatively unstable mind. He does not need to use a base ball bat. The injuries sustained, and the feelings of depression by Marie demonstrate the extent of the violence. Marie has grown to fear her husband and fearing he will come home from jail to kill her demonstrates this. Jean would hit Marie for no reason, yell at the kids and use abusive language towards Sammy who is not his son. He has an alcoholic problem. He even abandons his family and goes away. Has trouble sleeping and claims he hears strange voices. He feels scared of himself. His violent outbursts cause his family to be denied the services of homeless shelters. A social worker had to intervene for the family to get admission to a domestic violence shelter. Jean has a manipulative attitude and domineering towards his family. This is seen when he discouraged Marie from pursuing her dream in nursing. Jean discouraged his wife from visiting her family as well as discouraging her family to visit her. He domineered over her denying her the right and freedom of association by becoming possessive and consequently Marie had no friends. Marie suffers from depression. She has lost motivation to be productive. She has no motivation to seek employment, perform her household chores, and provide quality parenting to her children. Marie has had a troubled childhood and early adulthood. She was physically abused by her father. The father of her first child Samuel sexually abused her at age 19 years. She was vulnerable and hence fell for Jean who promised her a better life and security. Marie is basically a responsible and intelligent woman. She expresses desire to be supportive of her husband as a duty. She desires to pursue nursing to support her family.   Marie has attempted to restore their relationship. She suspects that jean is having a drug problem. This is found to be true when the family comes back from Bahamas. She took Jean back after one year when Jean supposedly went back to his medication and started applying for jobs. Marie graduated from high school with straight A’s. The family has lost close ties with their paternal relatives/extended family. There is no mention in the case study of Jeans relatives and the Child Protective Services Caseworker could not trace any relatives. The children feel insecure about their father. Samuel tries to save his mother from the violent attack while Joshua calls the police.   Samuel does not feel attached to Jean anymore. Jean is not essentially a bad man. In their initial years in marriage Jean was a responsible man and took care of Sammy as his own child. Though he is violent towards his wife he apologizes for the violence. He agrees to seek psychiatric advice upon Marie’s request. Jean makes his family more comfortable when he gets employed. He agrees to let Marie take the children to Bahamas. Concerning the children Samuel is 13 years old and feels like he no longer belongs to this family. He is constantly teased by the siblings as well as Jean for being black. He suffers from attention-deficit hyperactivity disorder and learning disorder. He is academically average and manages to get C’s and D’s. He is getting into more problems at school including fights and poor academic performance. Molests younger children at school and is physically and verbally aggressive to his younger siblings. He copies Jean’s behavior in that he has physically attacked his mother. He is unfriendly. His accomplishments in karate programs demonstrate his inclination towards violence. Joshua is 11years old, he is obese and reserved. He is academically average and manages to get B’s and C’s. He has one friend Joe, and wishes his friend’s family were his family. He sees Joe’s family as normal people and this means that he sees his family as abnormal. He feels that his father would have killed his mother had he not called in the police. He is having trauma and yet he cares for his father. He is at risk of failing as a result of traumatic experiences. Has personality problems, he refuses to bathe. He loves solitude. He is a responsible child, helpful in the house and loves school. Valerie is 9 years old. She is quiet and withdrawn child. She is kind and eager to please. She is above average and bright. She manages straight A’s. She is well liked by peers and teachers, though she does not socialize with her friends outside school. She is a responsible child and takes care of her younger siblings. She is friendly to Joshua but antagonistic towards Samuel. Miranda is 6 years old, she is a friendly but withdrawn child and does not perform well at school. She seems to be disturbed and disconnected from her immediate surroundings. Has nightmares that proves she is disturbed. Matthew is 4 years old. He does not seem to be doing well at school, he is very active physically with an inclination towards violence. He is basically uncooperative. Interpretation the information about this family  From the observations about the children in the Jacques family it is important to note that they all demonstrate varying degrees of emotional and psychological deficits. This has been found to be the case from studies conducted on children who have been exposed to domestic violence (National Resource Centre on Domestic Violence, 2002. p 6). The children in this family are unable to socialize with their peers as this is demonstrated by their unfriendliness and disability to keep friends. Children are likely to view themselves as the cause of the violence and feel held captive by their inability to stop the violence. This may most likely cause the child to internalize, and this situation is made worse by their inability to acquire social skills (National Resource Centre on Domestic Violence, 2002. p 7). Conclusions about this family The Jacques family needs medical interventions. From the observation in the case study it demonstrates Jacques has a medical condition and having exposed his entire family to the violence the whole family needs the relevant medical intervention for each age bracket. Studies have shown there does not exist a single intervention strategy that fits all cases (National Resource Centre on Domestic Violence, 2002. p 15). Treatment for this family Given that Marie has on several attempts tried to restore their relationship with Jacque it would be appropriate to engage the services of both the Domestic Violence programs (DV) and the Child Protective Services (CPS) more seriously. The CPS’s approach focuses on protecting the children while at the same time propagate the preservation of the family unit while the DV facilitates the safety of the victim. There are several joint programs between DV and CPS that would be helpful in this case (National Resource Centre on Domestic Violence, 2002. p 16). Empirical Studies Case 1; In handling Domestic violence related problems it is important to understand that factors such as age of the child, its gender, and the time that has passed since the last exposure to violence, the child’s attachment to the friendly parent and other important individuals and social supports in its life are the determining factors that influence the impact of the violence on the child (National Resource Centre on Domestic Violence, 2002. p 19). Case 2; The mistreat of children and violence against females are con-current. About 500,000 may be found by police during arrests for domestic violence. An overlap of between 30%-60% exists between violence against women and violence against children in the same families (National Resource Centre on Domestic Violence, 2002. p 20). Case 3; If safety and other pertinent interventions are not available the impact of the exposure to domestic violence and child abuse can spill over into the child’s adolescence. Young people who have been exposed to domestic violence at home are likely to replicate the violence (National Resource Centre on Domestic Violence, 2002. p 20). References Enos V, P., Linden, J, A., Tieszen, L., Bernstein, J. Brown, J. (2004) An Intervention To Improve Documentation Of Intimate Partner Violence In Medical Records. U.S Department of justice. Retrieved February 23, 2009 from http://www.ncjrs.gov/pdffiles1/nij/grants/207146.pdf Kelleher, K., Gardner, W., Coben, J., Barth, R., Edleson, J. Hazen, A., (2002). Co-Occuring Intimate Partner Violence and Maltreatment; Local Policies/Practices and Relationships to Child Placement, Family Services and Residence. U.S Department of justice. Retrieved February 23, 2009 from http;//www.ncjrs.gov/pdffiles1/nij/grants/213503.pdf National Resource Centre on Domestic Violence. (2002). Children Exposed To Intimate Partner Violence. Retrieved February 23, 2009 from http://new.vawnet.org/Assoc_Files_VAWnet/NRC_Children.pdf

Message in a Bottle :: essays papers

Message in a Bottle Rolling waves gently brushed upon the sand and nipped softly at my toes. I gazed out into the oblivion of blue hue that lay before me. I stared hopefully at sun-filled sky, but I couldn’t help but wonder how I was going to get through the day. Honestly, I never thought in a million years that my daughter and I would be homeless. Oh, how I yearned for our house in the suburbs. A pain wrenched at my heart when I was once reminded again of my beloved husband, Peter. I missed him so much and couldn’t help but ask God why he was taken from us. Living underneath Pier 14 was no life for Emily and me. I had to get us out of here and back on our feet. My stomach moaned angrily. I needed to somehow find food for us, but how? Suddenly, something slimy brushed up against my leg and pierced my thoughts. I jumped back and brushed the residue of sand of my legs. What was that? As my eyes skimmed the water in front of me, I noticed something spinning in the foam of the waves. Curi osity got the best of me and I went over to take a closer look. The object danced in the waves and eventually was coughed out onto the beach. â€Å"Emily!† I called to my eight-year-old daughter who was, at that time, infatuated with a seashell that she found earlier that day. â€Å"Come here and see this! Mommy found something.† Although I had no idea what that something was and I definitely didn’t know it would change my life forever. â€Å"What did you find, Mommy? Is it food?† Emily came running down from the pier to see my finding. â€Å"Oh honey,† I answered, sadly acknowledging my daughter’s hunger, â€Å" I wish it was. Actually, I’m not quite sure what it is. Help me clean it off, will you?† Emily and I began scrubbing the dilapidated, seaweed covered object in the warm waves of the Atlantic. â€Å"Wow, That’s not at all I expected.† I answered as I rolled an old bottle in the water. â€Å"At least we can get some money for this at the recycling center. Not much, but if we collect enough bottles we could get some lunch!† I looked hopelessly at the bottle.

Forward Integration or Horizontal Expansion? Essay

In early March 2004, Alejandro Perez, president and CEO of Chilean forestry company, Arauco, was about to present his recommendations to the board of directors as to whether the company should invest US$1 billion to construct a new state-of-the-art chemical pulp plant. The plant, part of a multiphase project called Nueva Aldea, would increase Arauco’s capacity by approximately 800,000 tons to 3. 2 million tons, placing the company as the largest producer of market pulp, just ahead of Aracruz in Brazil. Two years earlier, Arauco’s board approved the first phase of the Nueva Aldea project for US$150 million, which consisted of building a sawmill, plywood mill, and energy complex. The second phase involved constructing a pulp mill following the inauguration of the new Valdivia plant on January 30, 2004. The Valdivia plant had a designed production capacity of 700,000 tons of pulp, with an operating life between 30 and 40 years and expected sales of USD $350 million per year. 1 Perez was concerned about the downward trend in market pulp prices over the last three years. In addition, major paper companies, the sole buyers of market pulp, were typically backwardintegrated into the production of pulp. Perez was confident, however, that the board would trust his judgment given Arauco’s tremendous success in recent ventures into remanufactured wood products (such as cut stock, blanks, clear rips, and decking balusters), plywood, and fiberboard panels. Perez anticipated the toughest question the board would pose: would shareholders be better served by a strong-willed forward integration move into paper manufacturing rather than the horizontal growth plan he was proposing? Furthermore, was a large resource commitment a good strategic move at this point? History of Arauco and COPEC Arauco was formed through a merger between Industrias Arauco and Celulosa Constitucion in 1979. Both companies had been created 20 years earlier by the Chilean government to develop forest resources, improve soil quality, and promote employment. In the late 1970s, the Chilean government had initiated an aggressive privatization program, which resulted in the sale of Industrias Arauco in 1977 to Compania de Petroleos de Chile (COPEC), a conglomerate involved in oil and gas, fishing, ________________________________________________________________________________________________________________ Professors Ramon Casadesus-Masanell and Jorge Tarzijan (Universidad Catolica de Chile) and Research Associate Jordan Mitchell prepared this case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright  © 2005, 2006, 2008, 2009 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www. hbsp. harvard. edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School. 705-474 Arauco (A): Forward Integration or Horizontal Expansion? forest management, and pulp. Two years later in 1979, COPEC purchased Celulosa Constitucion, merging the two entities to create Celulosa Arauco y Constitucion SA (referred to as Arauco). Arauco began its expansion plan in the 1980s, which involved purchasing land and plantations and installing new technology equipment to improve efficiencies to compete effectively in the world market pulp arena. The expansion plan paid off as the company’s total holdings in hectares2 grew from 170,000 in 1980 to 1,200,000 hectares in 2003. 3 Throughout the 1990s, the company increased its production capacity by constructing a second line at the Arauco mill, introducing new bleaching systems, entering new product lines, and expanding energy generation at its plants. By 1996, Arauco moved across the border to Argentina to purchase the company Alto Parana, expanding the company’s overall product offerings, land holdings, and production capacity. In 2000, Arauco aggressively increased its capacity yet again by purchasing its third mill in Chile, increasing production in Argentina, and entering into the MDF (medium-density fiberboard) and HB (hardboard) markets through stakes in sawmill PANELS plants such as Cholguan and Trupan. In late 2001, the company commenced a three-year construction project of its new mill, the Valdivia mill, at an estimated cost of US$600 million. The Valdivia plant had opened in January 2004 with a total construction cost of US$1. 2 billion; US$900 million was apportioned to the purchase of the plant’s assets (a pulp plant and other assets), and US$300 million was for the creation of a 100,000 hectare forest. 4 The plant was the world’s fifth-largest bleached kraft pulp plant and the largest in Chile. By 2004, Arauco was one of the world’s premier forestry enterprises in terms of plantation areas and yields. It was also involved in the production of market kraft wood pulp, saw timber, and wood panels with forest plantations throughout Chile, Argentina and Uruguay. Arauco had sales offices in Argentina, Brazil, Mexico, Holland, Japan, and the U. S. , and distributorships in Peru, Columbia, Venezuela, Korea, Taiwan, Thailand, Malaysia, and India. (Exhibit 1 shows Arauco’s corporate structure. ) COPEC was the majority shareholder with 99. 98% ownership of Arauco’s shares. COPEC: This company was founded after the stock market crash in 1929 with the intention of guaranteeing fuel supplies in Chile. 5 As of the end of 2003, the market capitalization of COPEC was approximately US$9. 3 billion, which represented 12% of the market capitalization of all publicly traded companies in Chile. COPEC was publicly traded with the majority of shares being indirectly held by the Angelini Group (via another company, AntarChile). Anacleto Angelini, part owner of the Angelini Group, was deemed to be one of the 10 richest men in Latin America by Forbes magazine. 6 COPEC’s consolidated sales were US$2. 7 billion, with operating income at $375 million. Although 35% of COPEC’s sales7 came from forestry, COPEC’s profits were tied closely to pulp prices, since 78% of the company’s EBITDA originated from Arauco. 8 Other sales were derived from fuels (60. 4%), fishing (1. 4%), and other investments (3. 2%). Arauco’s Strategy Arauco explained its central strategy in a letter to shareholders: The central idea behind our global strategy is to strengthen our position as one of the most important forestry companies in Latin America, employing [the company’s] size to achieve the necessary economies of scale for positioning [ourselves] as a company that provides a reasonable return to its shareholders while properly meeting its responsibilities to its employees, the country and the communities where it develops its activities. In the forestry area, Arauco’s strategy is to increase the value of it forest resources, consisting of radiata and 2 Arauco (A): Forward Integration or Horizontal Expansion? 705-474 taeda pine and eucalyptus through further purchases but especially through making intensive use of the most advanced technologies in genetic improvement, forest management and pest, weed and fire protection. 9 The company felt that it could achieve its strategy through implementing a capital expenditure plan aimed at increasing capacity, efficiency, and productivity in both pulp and wood products. While the company’s current strength was in softwood through its radiata and taeda pine forests, Arauco wanted to increase its hardwood pulp production by planting eucalyptus trees. By using advanced forest techniques, the company hoped that it would improve product quality and increase margins. An analyst described Arauco’s cost advantage in comparison with its northern counterparts: Arauco has a leading business position in the volatile market pulp industry due to its lowcost production capabilities. Unlike bleached softwood market pulp producers in the Northern Hemisphere, Arauco produces bleached softwood kraft pulp for less than $300 per ton. As a result, Arauco has been able to generate positive cash flows during troughs in the market pulp cycle. Nevertheless, like all producers of market pulp, Arauco is not able to escape the impact of pricing swings on its financial performance. This is reflected in the company’s credit protection measures, which have improved over the past two years as prices have risen. 10 Perez gave his view of Arauco’s performance against its strategy, in light of difficult economic conditions in Chile: During several years, the company has been concentrated in the pulp business because we had young forests. But while they were maturing, we developed other important businesses like woods and panels that gave a bit more stability to the results. As well, investments made to improve our assets, our operational strength, and economic conditions—like the favorable exchange rate for export industries—have all helped to reduce operational costs. And, there’s a third reason that we’re different from other large Chilean companies that have a presence in Argentina. We’re oriented to exports. The crisis in Argentina has shook us like it has others, but our focus has allowed us to gain access to other markets and weather the storm. 11 An industry observer commented on Arauco’s decreasing reliance on pulp: â€Å"The firm . . . has been diversifying their business lines to minimize the impact of the volatility of pulp prices—one of their principal sources of income. The search to expand the company’s horizons have already had some repercussions to the company’s image: traditionally, they’ve been called Celulosa Arauco y Constitucion (Celarauco) or Celco, but now the company is positioning themselves more frequently with the name Arauco. †12 Product Segments Arauco had three main product segments: pulp products, such as bleached and unbleached kraft pulp; forestry products like pulpwood and sawlogs; and wood products, which included flitches, lumber, remanufactured wood products and panels. (Exhibits 2 and 3 show Arauco’s overall financials, employee base, and sales by product segment. ) Pulp Pulp was used primarily in the manufacturing of paper and paperboard products, although pulp was also employed in other products like rayon, photographic films, cellophane and explosives. 13 3 705-474 Arauco (A): Forward Integration or Horizontal Expansion? Ninety percent of the world’s pulp originated from wood and 10% was produced through alternative materials such as straw bamboo, bagasse, kenaf, flax, hemp, and cotton. 14 Processes and types There were several types of kraft pulp traded throughout the world. Pulp could either be bleached or unbleached and derived from either hardwood or softwood. Two processes existed for producing pulp: mechanical (produced by shredding logs or wood chips) and chemical (made by cooking wood chips in a solution). Chemical pulp was further subdivided into two groups: sulphite pulp and sulphate pulp (more commonly called kraft pulp, meaning â€Å"strong† in German). By 2004, the kraft process was the world’s predominant chemical pulping method accounting for 95 per cent of all chemical pulp. Kraft pulp was brown in color, and was thus bleached for most applications. For example, in the manufacturing of white paper, pulp was bleached at the end of the pulping process. In contrast, brown paper bags were manufactured from unbleached kraft paper. Arauco elected to produce all of their pulp through the kraft process. a Each region specialized in a given category: for example, northern bleached softwood kraft pulp was produced mainly in Canada, the U. S. , Russia and Scandinavia and bleached eucalyptus kraft pulp was made mostly in Latin America. Arauco’s production of pulp Over 50% of Arauco’s revenues were generated by pulp sales. As of early 2004, Arauco had five pulp mills in Chile: Arauco I, Arauco II, Constitucion, Licancel, and the newly constructed Valdivia. The company also controlled another pulp mill, which was part of the wholly owned Argentinean company Alto Parana. (Exhibit 4 provides information about each mill. ) Arauco Mills (both I and II) were located 600 kilometers south of Chile’s capital, Santiago, in what was known as the eighth region15 of Chile. The annual capacity of Arauco I was 290,000 metric tons of eucalyptus kraft pulp or 200,000 metric tons of RADIATA kraft pulp. Arauco II produced only bleached radiata pine pulp, and its annual production capacity was about 500,000 tons. Both mills were equipped to produce elementary chlorine-free pulp—a pulp that avoided the use of environmentally harmful chlorine gases. Constitucion Mill was located 360 kilometers southwest of Santiago in the seventh region of Chile, and boasted a capacity of 355,000 metric tons of unbleached pulp. Licancel made elementary chlorine-free bleached radiate and eucalyptus kraft wood pulp, which was used primarily in the production of printing, writing, hygienic, and industrial papers. Its production was about 120,000 tons annually. Based in Misiones, Argentina, Alto Parana produced approximately 350,000 tons of bleached softwood kraft wood pulp from tadea pinewood, supplied both from its own plantations and independent sources. The company’s pulp mills were not affected by seasonality and generally ran at capacity throughout the year except eight to ten days of maintenance every 12 months. Arauco was the world’s largest single producer of unbleached softwood kraft pulp, holding 15. 8% of the total market. The company actively exported around the world, with Asia as its major destination for export sales. Pulp represented US$709. 8 million or 48. 7% of Arauco’s sales in 2003. (Exhibit 5 shows Arauco’s pulp exports. ) Arauco Electricity Generation To combat against rising electricity costs in Chile in the first half of the 2000s, Arauco installed two electricity generating turbines beside its pulp production facilities at an approximate cost of $60 million. Combined, the turbines have a capacity of approximately 250 megawatts (MW) per year. Arauco’s plants used 120 MW, leaving 130MW extra electricity generation capacity. Arauco had decided to install the additional capacity (which cost roughly $20 million of the total $60 million) so that it could sell the extra electricity to the Chilean a The word â€Å"kraft† was derived from the German word â€Å"strong. † 4 Arauco (A): Forward Integration or Horizontal Expansion? 705-474 electricity grid. Arauco was the only Chilean manufacturer who engaged in energy trading of such magnitude; revenues from selling off the additional energy averaged about $100 million per year. Selling market pulp Arauco marketed all bleached pulp under the name â€Å"Arauco† and unbleached pulp under the name â€Å"Celco. † Pulp was a commodity and was marketed by pulp producers mostly on price and service to nonintegrated paper manufacturers. Arauco aimed to establish long-term relationships with nonintegrated paper manufacturers by providing competitively priced and high-quality pulp. (Arauco’s cost of producing pulp per ton is shown in Exhibit 6). Besides these costs, there were selling and administrative expenses averaging approximately 9% of yearly revenues. The asset beta of pulp production and sales was 0. 9. Arauco also tightly controlled its inventories, attempting to sell its bleached and unbleached pulp at favorable market prices. (Exhibit 7 shows Arauco’s Chilean bleached and unbleached pine pulp prices (CIF) per metric ton. ) Forests Arauco’s forestry products were classified as either sawlogs or pulpwood. Arauco was Chile’s largest radiata pine owner, with 33% of the country’s total plantations. Radiata pine was a fastgrowing conifer tree and was highly regarded for its quality of wood. Chilean climatic conditions were ideal for the growth of radiata pine, and the country was generally considered to have the richest natural resources of radiata pine in the world. Common uses for the radiata pine were decorative veneer, form work, heavy and light construction, joinery, paneling, pulp/paper products, wainscotings, packing cases, boxes, crates, and building materials. In Chile, the harvesting of pulp logs could take place 16 to 18 years after planting and high-quality saw logs could be harvested in 25 years. In contrast, pulp logs cultivated in the northern hemisphere were harvested only 18 to 45 years after plantation and sawlogs required 50 to 150 years. Radiata pine in Chile had a high yield per hectare due to the quality of soil, making it possible to plant a larger number of pines by hectare. The first seven to 12 meters of the radiata pine tree was the highest quality part and was used in sawmills and plywood mills. The next eight to 13 meters was destined to sawmills or pulp mills depending on diameter and density of knot distribution. The top section was used for pulp and medium-density fiberboard (MDF) production. (Exhibit 8 shows a diagram of a tree and its multiple uses. ) Forests management Arauco’s forest holdings were geographically split by farmlands. To control forest fires, the company operated an organization dedicated to the constant identification and extinguishing of potential hazards. (Exhibit 9 summarizes Arauco’s land and forest holdings in Chile as of year-end 2003. ) In addition to the 900,000 hectares Arauco owned in Chile, it owned 200,000 hectares in Argentina and Uruguay. Bioforest Bioforest was the only forestry science and technology research center in Chile. In its laboratories, nurseries, and greenhouses, Bioforest conducted research and evaluated the latest techniques. The company fed innovations into the rest of Arauco’s operations but did not publicize its findings to the broader research community, nor did it offer consulting services to outside companies. The total spend on research and development was spread throughout several areas of the company and therefore, exceeded the research and development costs listed in the company’s annual financial statements. With advances in genetics and pest controls, Arauco was constantly seeking to improve the quality of its plantations. Bioforest had reached important achievements including the genetic 5 705-474 Arauco (A): Forward Integration or Horizontal Expansion? replication of high-quality radiata pine trees and eucalyptus trees. The company also researched soil fertility and insects aiming to develop strategies for plague control. Among other techniques to exterminate parasites, the company used natural predators biologically designed and reproduced in its own labs. Wood Products From its plantations, Arauco provided logs to sawmills and pulp mills, and to factories for the manufacture of panels. Arauco also sold logs and a variety of wood pieces on the open market. Arauco supplemented its production of pulp logs with purchases in the Chilean market. The plantations owned by Arauco covered approximately two-thirds of the raw material needed for production. The remaining one-third was purchased from providers and forest owners. The company hired independent contractors to perform most of its forest operations (planting, maintenance, thinning, pruning, harvesting, transportation, and access road construction). In 2003, the company employed over 10,000 workers through more than 300 subcontracting deals, with many contractors having long-standing relationships with Arauco. One important activity performed by independent contractors was the transportation from the forest plantations and between mills and ports. Fifteen years earlier, Arauco had owned a complete fleet of trucks, but by 2003 the company had outsourced the majority of its transportation needs. In some situations, Arauco provided capital to truck owners in order to expand and improve services. Arauco strove to establish long-term relationships and made renewable agreements of up to three years with truck owners and operators. Sawmills: Sawmills cleaned, dried, cut, and chopped logs into sawn timber. Arauco’s sawmills varied in capacity and capability, with some designed to produce green sawn timber (wood not dried in a kiln) and others designed to handle kiln-dried wood and remanufactured wood products. Arauco strategically built its sawmills close to its plantations to cut down on transportation costs and reduce time. The company owned 11 sawmills in Chile and two in Argentina that divided their production between sawn timber (green or kiln-dried) and remanufactured wood products, with an annual production capacity of 2. 5 million cubic meters of lumber. Arauco also owned five remanufacturing facilities that produced remanufactured wood products from reprocessed sawn timber. Like its forest operations, Arauco employed independent contractors to operate all of the sawmills and remanufacturing facilities. By 2003, Arauco’s sales of sawmill products represent 27. 5% of total sales. The mills had a total capacity of 5. 4 million cubic meters of sawlogs and 2. 65 million cubic meters of lumber. The Horcones II sawmill in Chile and the Misiones sawmill in Argentina were built in the first quarter of 2000 to increase production capacity by 520,000 cubic meters of sawn timber per year. The investment cost for Arauco was approximately US$52 million. At the same time, Arauco acquired Forestal Cholguan, through which it got the Cholguan sawmill, which further increased production capacity by 300,000 cubic meters of lumber per year. Panels Arauco produced plywood and fiber panels, which represented 20. 4% of the company’s sales in 2003. Arauco had expanded capacity first by building a plywood facility in 1997 at a cost of US$44 million, which increased production capacity by 230,000 cubic meters. In 2000, it built a second production line at a cost of US$30 million, and the total production of the facility reached 340,000 cubic meters. Maderas Prensadas Cholguan S. A. also became part of Arauco when the company bought Cholguan in 2000, increasing the capacity by approximately 300,000 cubic meters of MDF and HB. During 2002, two new mills MDF were set up, one in Chile and another in Argentina at a cost of US$135 million, amounting to a combined production capacity of 500,000 cubic meters. With all of these investments, Arauco’s current capacity was larger than one million cubic meters per year, making Arauco one of South America’s largest panel producers. 6 Arauco (A): Forward Integration or Horizontal Expansion? 705-474 Log Merchandizing Arauco used a process called â€Å"log merchandizing† to determine the location of cuts on each log and the order in which each section was sent to different adjoining facilities. Log merchandizing involved the use of a computer-driven scanner, which identified the log’s diameter, the shape of the knots and the optimal points for the cuts. After a log was cut, it was automatically grouped and then sent to one of three destinations: sawmills for timber, panel production or the chip plant (for eventual pulp production). It was estimated that the log merchandizing process saved millions of dollars per year as a 10-centimeter (3. 9 inches) error variation for an optimal cut in a major batch could result in $50 million in losses. The investment to install the specific assets related to log merchandizing cost about $30 million. As an Arauco executive stated: â€Å"You have no idea of the quality of the tree and the number of knots until you cut it down. The log merchandizing process ensures that we are using the parts of the tree for the right purpose. † Alto Parana Arauco acquired Alto Parana in 1996, with the main goal of kick-starting profitable businesses in Argentina. The acquisition included a pulp mill and plantations. Alto Parana was located 1,300 kilometers northeast of Buenos Aires, in the Misiones province of Argentina. The Alto Parana plant was the biggest pulp market producer in Argentina, with a capacity of 350,000 tons per year of bleached softwood kraft pulp. Arauco obtained raw material from Alto Parana’s plantations. While the plantations spanned 173,000 hectares, only 86,000 hectares were planted. Since these plantations were not sufficient for Alto Parana’s pulp mill capacity, approximately 50% originated from third parties. Alto Parana frequently entered into negotiations with third parties negotiating on the basis of price, quality, availability, and delivery. Sometimes, price negotiation escalated to local government as the forestry industry was the lifeblood of the Misiones province. The proximity of third-party resources was another vital concern as transportation costs ate into margins. Alto Parana was located far away from the main ports in Argentina. Thus, it was neither plausible nor cost effective to transport raw material from other countries. Argentina’s main forestry zones were located in the provinces of Misiones, Corrientes, Entre Rios, Chaco, and Patagonia. Apart from Misiones, where Alto Parana was located, Corrientes was the closest at 300 kilometers from the Alto Parana facility. In 2003, Corrientes had pine and eucalyptus plantations spanning 117,000 and 71,000 hectares, respectively. Exhibit 10 shows the approximate costs of lumber transportation inside Argentina. In addition, there were loading costs associated with moving raw materials from the forest plantations to the plants. Owners of Argentinean plantations had to choose between exporting the wood to foreign nations or selling the wood to local-based enterprises. It was estimated that the following firms would require approximately 50,000 tons of market pulp each. The main Argentinean firms that needed wood as a raw material were: †¢ Celulosa Argentina S. A. , specializing in the production of bleached pulp, and located in Santa Fe, 900 kilometers from Parana, with a capacity of 95,000 tons per year. †¢ Faplac S. A. , manufacturer of PBO (particle boards), located in the province of Buenos Aires about 1,000 kilometers from Alto Parana, with a capacity of 50,000 tons per year. 7 705-474 Arauco (A): Forward Integration or Horizontal Expansion? †¢ Ledesma S. A. , manufacturer of notebooks and commercial paper, with a production facility in San Luis, 1,400 kilometers from Alto Parana. Ledesma manufactured about 85,000 tons of paper a year, although most of the raw material it needed to produce pulp came from sugar cane. †¢ Massuh S. A. , manufacturer of pulp and paper, with a production of 120,000 tons per year. Its pulp and paper plant was located in Quilmes, Buenos Aires province, more than 1,300 kilometers from Alto Parana. †¢ Papelera Jujuy, paper manufacturer, located in Jujuy, 1,100 kilometers from Alto Parana with a capacity of 50,000 tons per year. †¢ Papelera Tucuman, paper manufacturer, located in Tucuman, about 1,000 kilometers from Alto Parana, with a capacity of 50,000 tons per year. Pulp and Paper Industry The global pulp and paper industry consisted of five main activities: forestry, pulp production, paper and board production, distribution, and converting. Most of the larger players in the industry had integrated operations that involved two or more of the above activities. The industry had undergone a number of mergers and acquisitions in the 1990s as pulp and paper manufacturers struggled to enhance efficiencies, increase capacities, and lower costs. Some industry observers felt that the highly fragmented nature of the industry meant that prices were less stable. Several of the larger companies were considered to be fully integrated with the ownership and operation of forests, pulp mills, paper factories, distribution, and converting facilities. Other firms chose to focus on a particular category. The overall paper demand was determined ultimately by consumers’ willingness to purchase products such as newspapers, magazines, office paper, stationary, and a host of home products such as tissue and toilet paper. Paper and paperboard in packaging was widespread and used across most consumer and industrial applications. The overall usage of converted paper products (newspapers, magazines, tissue paper, diapers, etc. ) created the demand, which determined the prices for pulp and paper. The main consumers of paper were from North America, with an average consumption of 326. 5 kilograms of paper per person per year. Western Europe, Japan, and China consumed approximately 190 kilogram per person per year. Developing countries in Asia, Eastern Europe, and Latin America were also increasing their usage of paper products. For example, corrugated paper in China was estimated at 13 to 15 billion cubic meters a year, with growth rates projected to be 10% annually for the next 10 years. 16 The possibility of such growth had spurred several pulp, paper, and chemical companies to form joint ventures with Chinese firms. Pulp and paper prices fluctuated as producers lowered prices in times of soft demand, and moved to increase supply by building more capacity when demand was predicted to increase. Suppliers of pulp and paper controlled inventories tightly, releasing products to the marketplace at targeted times. (Exhibit 11 shows the worldwide consumption of paper. ) Environmental Considerations—Recycling and Substitutes to Paper Governments had been increasing regulations for pulp and paper companies to avoid clearcutting forests, to reduce chemical by-products such as chlorine, limit gas emissions from the operation of factories, and increase recycling. With greater environmental pressures, the three â€Å"R† slogan (reduce, reuse and recycle) was creating alternative industries and increasing global 8 Arauco (A): Forward Integration or Horizontal Expansion? 705-474 capabilities to recycle paper. For example, in the U. S. , it was estimated that approximately 42% of paper was recovered for recycling. 17 Recycled fibers from paper replaced the use of pulp in paper manufacturing. Using recycled fibers had several advantages, including lower costs to recycle paper than to produce pulp, the reduction of wood usage, lower residues released into the environment, and an overall drop in the cost of environmental treatment. The major disadvantage of using recycled fibers was that its output per comparable ton was much less than pulp. Recycled fibers could be reused between five to seven times; after seven times, the fibers became too short for papermaking. 18 Recycled fibers were experiencing modest growth, with production growing at a compound annual growth rate of approximately 6% moving from 48 million tons annually in 1980 to an estimated 150 million in 2000. Some industry observers felt that the increasing use of computers, handheld devices, and mobile phones would act as a substitute for paper. However, with more information passing through these mediums, other industry observers felt that paper usage would increase. The Paper and Paperboard Industry Over half of the material that went into making paper and paperboard was made using pulp. Other materials included recycled fiber, chemicals, and minerals. By mixing together different variations of softwood or hardwood pulp, the paper manufacturer could produce a product for a specific intent. Paper products ranged from uncoated free sheets (such as regular writing paper) to coated free sheets, tissues, newsprint, and coated and uncoated groundwood. The worldwide paper market was estimated to be greater than 330 million tons at the end of 2003. The paper market had experienced three years of soft demand with no real growth in dollar terms since 2000. As of March 2004, an analyst assessed the worldwide paper market: Global paper demand is on the mend. U. S. prices are likely to lead the way into price recovery with a meaningful positive effect on U. S. earnings in the second quarter and should gain further in the second half. The U. S. dollar sets the tone for the sentiment to invest in the paper sector. While a weaker U. S. dollar undoubtedly has negative implications for earnings in the near term the impact of a weaker U. S. dollar is dwarfed in comparison to the impact of higher prices. . . . European paper prices have bottomed in our view and it appears likely that higher prices should start to impact earnings in some early cycle segments from the third quarter onwards. Later cycle segments, such as newsprint and SC paper, should see a nice price rebound in the early stages of 2005. Prices have been on a downward trajectory since the fourth quarter of 2000 but the tide is now turning. 19 Paper and Paperboard Companies Most of the large paper companies chose to operate a completely integrated structure that included the ownership of forests, pulp mills, paper manufacturing facilities, distribution arms, and converting capabilities. However, there were a number of smaller local firms that produced paper based on the specific need of their markets. These smaller paper manufacturers typically purchased raw materials such as pulp from suppliers based on the type of pulp (bleached, unbleached, softwood, hardwood, etc. ), the cost, and the service details. Some industry insiders felt that maintaining a fully integrated structure allowed for greater negotiation leverage with the main suppliers to the industry, such as chemical providers and paper and pulp machinery manufacturers. 9 705-474 Arauco (A): Forward Integration or Horizontal Expansion? Exhibit 12 shows a list of 25 of the world’s largest paper companies. The top five producers included: 1. International Paper Co. (U. S. ) had revenues of $25. 2 billion and profits of $302 million in 2003. The company was a fully integrated enterprise producing plywood, paper, pulp, packaging, and chemical by-products from papermaking. It controlled over 10 million acres of forestlands in the U. S. , Brazil, and New Zealand. 20 2. Georgia-Pacific Corp. (U. S. ) had revenues of $20. 2 billion and profits of $254 million in 2003. Like its main rival, International Paper Co, Georgia-Pacific was a vertically integrated competitor in pulp, paper, lumber, plywood, oriented strand board, adhesives, and a number of paper consumer products. The company planned on spinning off its consumer products division but changed plans due to weak equity markets in 2002. However, it did sell majority ownership of its distribution arm, Unisource Worldwide. 21 3. Stora Enso Corp. (Finland) had revenues of $15. 2 billion and profits of $182 million. Stora Enso was involved in the manufacturing of a wide variety of products such as magazine paper, newsprint, fine papers, packaging, graphic products, office papers, wallpaper base, and sawn timber. 22