Motive 1: You Are Ready To Track Your Health and fitness General performance Each and every Day!
The very first purpose that a health tracker will strengthen your conditioning is that you can keep track of your targets way much more straightforward. Toss absent any pen and paper! Documenting your aims and information was by no means simpler. And you are a lot more enthusiastic to go out to go to the fitness center – paperless! Of system this is a great motive to use a health and fitness tracker but not the finest. Be sure to study on!
Purpose 2: A Physical fitness Tracker Motivates You To Go Functioning Extra Generally than any other Exercise Gadget
Some trackers assistance that your info will be stored in the cloud by syncing your gadget with your mobile cellular phone. There are a good deal social communities in which – after you have put your data on the internet – you can clearly show and share your new health and fitness information. Typically you even will be honored when you attain a new conditioning purpose. And when you see the targets that your mates have currently realized it can make it even a lot more competitive for you. It will motivate you to achieve increased and better goals, way too. On top of that, if you depart out your work out it will be recognized by your mates and they will pretty probably remark that. So just because you never want your followers to be disappointed, you will consistently be determined to do your exercise sessions.
Explanation 3: Your Action Tracker Will Notify You When It Is Required For You To Boost Your Existing Action
At times you will ignore that you have to do your each day exercise routine. Many trackers you can acquire are programmed to remind you that you have to access your objective. Some give you even a tiny electric powered shock if you really don’t arrive at your day-to-day health goal. Now this is a serious motivator!
Explanation 4: Your Action Gadget Will Even Keep track of Your Snooze!
Fitness tracker can also file your slumber – if you like to. Some health and fitness bands then use the full gathered information of a unique interval and determine the perfect unique time for you to go to rest. Consider your fitness tracker to advise you to go to mattress 20 minutes earlier so that you will be equipped to shift roughly 500 ways much more at the future day.
Rationale 5: It Is Attainable To Track Your Crucial Indicators With A Fitness Tracker
Not only for youthful individuals it is very excellent to keep track of vital very important signs by sporting the exercise tracker. Also for older people with health difficulties this could be handy. The collected info could possibly at times be accessed by your physician for his analysis.
The following is a brief description of the two companies:
It all began in the year 1938 when two electrical engineering graduates from Stanford University called William Hewlett and David Packard started their business in a garage in Palo Alto. In a year’s time, the partnership called Hewlett-Packard was made and by the year 1947, HP was incorporated. The company has been prospering ever since as its profits grew from five and half million dollars in 1951 to about 3 billion dollars in 1981. The pace of growth knew no bounds as HP’s net revenue went up to 42 billion dollars in 1997. Starting with manufacturing audio oscillators, the company made its first computer in the year 1966 and it was by 1972 that it introduced the concept of personal computing by a calculator first which was further advanced into a personal computer in the year 1980. The company is also known for the laser-printer which it introduced in the year 1985.
The company is better known as Compaq Computer Corporation. This was company that started itself as a personal computer company in the year 1982. It had the charm of being called the largest manufacturers of personal computing devices worldwide. The company was formed by two senior managers at Texas Instruments. The name of the company had come from-“Compatibility and Quality”. The company introduced its first computer in the year 1983 after at a price of 2995 dollars. In spite of being portable, the problem with the computer was that it seemed to be a suitcase. Nevertheless, there were huge commercial benefits from the computer as it sold more than 53,000 units in the first year with a revenue generation of 111 million dollars.
Reasons for the Merger
A very simple question that arises here is that, if HP was progressing at such a tremendous pace, what was the reason that the company had to merge with Compaq? Carly Fiorina, who became the CEO of HP in the year 1999, had a key role to play in the merger that took place in 2001. She was the first woman to have taken over as CEO of such a big company and the first outsider too. She worked very efficiently as she travelled more than 250,000 miles in the first year as a CEO. Her basic aim was to modernize the culture of operation of HP. She laid great emphasis on the profitable sides of the business. This shows that she was very extravagant in her approach as a CEO. In spite of the growth in the market value of HP’s share from 54.43 to 74.48 dollars, the company was still inefficient. This was because it could not meet the targets due to a failure of both company and industry. HP was forced to cut down on jobs and also be eluded from the privilege of having Price Water House Cooper’s to take care of its audit. So, even the job of Fiorina was under threat. This meant that improvement in the internal strategies of the company was not going to be sufficient for the company’s success. Ultimately, the company had to certainly plan out something different. So, it was decided that the company would be acquiring Compaq in a stock transaction whose net worth was 25 billion dollars. Initially, this merger was not planned. It started with a telephonic conversation between CEO HP, Fiorina and Chairman and CEO Compaq, Capellas. The idea behind the conversation was to discuss on a licensing agreement but it continued as a discussion on competitive strategy and finally a merger. It took two months for further studies and by September, 2001, the boards of the two companies approved of the merger. In spite of the decision coming from the CEO of HP, the merger was strongly opposed in the company. The two CEOs believed that the only way to fight the growing competition in terms of prices was to have a merger. But the investors and the other stakeholders thought that the company would never be able to have the loyalty of the Compaq customers, if products are sold with an HP logo on it. Other than this, there were questions on the synchronization of the organization’s members with each other. This was because of the change in the organization culture as well. Even though these were supposed to serious problems with respect to the merger, the CEO of HP, Fiorina justified the same with the fact that the merger would remove one serious competitor in the over-supplied PC market of those days. She said that the market share of the company is bound to increase with the merger and also the working unit would double. (Hoopes, 2001)
Advantages of the Merger
Even though it seemed to be advantageous to very few people in the beginning, it was the strong determination of Fiorina that she was able to stand by her decision. Wall Street and all her investors had gone against the company lampooning her ideas with the saying that she has made 1+1=1.5 by her extravagant ways of expansion. Fiorina had put it this way that after the company’s merger, not only would it have a larger share in the market but also the units of production would double. This would mean that the company would grow tremendously in volume. Her dream of competing with the giants in the field, IBM would also come true. She was of the view that much of the redundancy in the two companies would decrease as the internal costs on promotion, marketing and shipping would come down with the merger. This would produce the slightest harm to the collection of revenue. She used the ideas of competitive positioning to justify her plans of the merger. She said that the merger is based on the ideologies of consolidation and not on diversification. She could also defend allegations against the change in the HP was. She was of the view that the HP has always encouraged changes as it is about innovating and taking bold steps. She said that the company requires being consistent with creativity, improvement and modification. This merger had the capability of providing exactly the same. (Mergers and Acquisitions, 2010)
Advantages to the Shareholders
The following are the ways in which the company can be advantageous to its shareholders:
Unique Opportunity: The position of the enterprise is bound to better with the merger. The reason for the same was that now the value creation would be fresh, leadership qualities would improve, capabilities would improve and so would the sales and also the company’s strategic differentiation would be better than the existing competitors. Other than this, one can also access the capabilities of Compaq directly hence reducing the cost structure in becoming the largest in the industry. Finally, one could also see an opportunity in reinvesting.
Stronger Company: The profitability is bound to increase in the enterprise, access and services sectors in high degrees. The company can also see a better opportunity in its research and development. The financial conditions of the company with respect to its EBIT and net cash are also on the incremental side.
Compelling Economics: The expected accumulation in IIP gains would be 13% in the first financial year. The company could also conduct a better segmentation of the market to forecast its revenues generation. This would go to as much as 2 and a half billion dollars of annual synergy.
Ability to Execute: As there would be integration in the planning procedures of the company, the chances of value creation would also be huge. Along with that the experience of leading a diversified employee structure would also be there. (HP to buy Compaq, 2001)
Opposition to the Merger
In fact, it was only CEO Fiorina who was in favor of going with the merger. This is a practical application of Agency problem that arises because of change in financial strategies of the company owners and the management. Fiorina was certain to lose her job if the merger didn’t take effect. The reason was that HP was not able to meet the demand targets under her leadership. But the owners were against the merger due to the following beliefs of the owners:
The new portfolio would be less preferable: The position of the company as a larger supplier of PCs would certainly increase the amount of risk and involve a lot of investment as well. Another important reason in this context is that HP’s prime interest in Imaging and Printing would not exist anymore as a result diluting the interest of the stockholders. In fact the company owners also feel that there would be a lower margin and ROI (return on investment).
Strategic Problems would remain Unsolved: The market position in high-end servers and services would still remain in spite of the merger. The price of the PCS would not come down to be affordable by all. The requisite change in material for imaging and printing also would not exist. This merger would have no effect on the low end servers as Dell would be there in the lead and high-end servers either where IBM and Sun would have the lead. The company would also be eluded from the advantages of outsourcing because of the surplus labor it would have. So, the quality is not guaranteed to improve. Finally, the merger would not equal IBM under any condition as thought by Fiorina.
Huge Integrated Risks: There have been no examples of success with such huge mergers. Generally when the market doesn’t support such mergers, don’t do well as is the case here. When HP could not manage its organization properly, integration would only add on to the difficulties. It would be even more difficult under the conditions because of the existing competitions between HP and Compaq. Being prone to such risky conditions, the company would also have to vary its costs causing greater trouble for the owner. The biggest factor of all is that to integrate the culture existing in the two companies would be a very difficult job.
Financial Impact: This is mostly because the market reactions are negative. On the other hand, the position of Compaq was totally different from HP. As the company would have a greater contribution to the revenue and HP being diluted at the same time, the problems are bound to develop. This would mean that drawing money from the equity market would also be difficult for HP. In fact this might not seem to be a very profitable merger for Compaq as well in the future.
The basic problem that the owners of the company had with this merger was that it would hamper the core values of HP. They felt that it is better to preserve wealth rather than to risk it with extravagant risk taking. This high risk profile of Fiorina was a little unacceptable for the owners of the company in light of its prospects.
So, as far as this merger between HP and Compaq is concerned, on side there was this strong determination of the CEO, Fiorina and on the other side was the strong opposition from the company owners. This opposition continued from the market including all the investors of the company. So, this practical Agency problem was very famous considering the fact that it contained two of the most powerful hardware companies in the world. There were a number of options like Change Management, Economic wise Management, and Organizational Management which could be considered to analyze the issue. But this case study can be solved best by a strategy wise analysis. (HP-Compaq merger faces stiff opposition from shareholders stock prices fall again, 2001)
Strategic Analysis of the Case
A CEO will always consider such a merger to be an occasion to take a competitive advantage over its rivals like IBM as in this case and also be of some interest to the shareholders as well. The following are the strategies that are related to this merger between HP and Compaq:
* Having an eye over shareholders’ value: If one sees this merger from the eyes of Fiorina, it would be certain that the shareholders have a lot to gain from it. The reason for the same is the increment in the control of the market. So, even of the conditions were not suitable from the financial perspective, this truth would certainly make a lot of profits for the company in the future.
* Development of Markets: Two organizations get involved in mergers as they want to expand their market both on the domestic and the international level. Integration with a domestic company doesn’t need much effort but when a company merges internationally as in this case, a challenging task is on head. A thorough situation scanning is significant before putting your feet in International arena. Here, the competitor for HP was Compaq to a large degree, so this merger certainly required a lot of thinking. Organizations merge with the international companies in order to set up their brands first and let people know about what they are capable of and also what they eye in the future. This is the reason that after this merger the products of Compaq would also have the logo of HP. Once the market is well-known, then HP would not have to suffer the branding created by Compaq. They would be able to draw all the customers of Compaq as well.
* Propagated Efficiencies: Any company by acquiring another or by merging makes an attempt to add to its efficiencies by increasing the operations and also having control over it to the maximum extent. We can see that HP would now have an increased set of employees. The only factor is that they would have to be controlled properly as they are of different organizational cultures. (Benefits of Mergers:, 2010)
* Allowances to use more resources: An improvised organization of monetary resources, intellectual capital and raw materials offers a competitive advantage to the companies. When such companies merge, many of the intellects come together and work towards a common mission to excel with financial profits to the company. Here, one can’t deny the fact that even the top brains of Compaq would be taking part in forming the strategies of the company in the future.
* Management of risks: If we particularly take an example of this case, HP and Compaq entering into this merger can decrease the risk level they would have diversified business opportunities. The options for making choice of the supply chain also increase. Now even though HP is a pioneer in inkjet orienting, it would not have to use the Product based Facility layout which is more expensive. It can manage the risk of taking process based facility layout and make things cheaper. Manufacturing and Processing can now be done in various nations according to the cost viability as the major issue.
* Listing potential: Even though Wall Street and all the investors of the company are against the merger, when IPOs are offered, a development will definitely be there because of the flourishing earnings and turnover value which HP would be making with this merger.
* Necessary political regulations: When organizations take a leap into other nations, they need to consider the different regulations in that country which administer the policies of the place. As HP is already a pioneer in all the countries that Compaq used to do its business, this would not be of much difficulty for the company. The company would only need to make certain minor regulations with the political parties of some countries where Compaq was flourishing more than HP.
* Better Opportunities: When companies merge with another company, later they can put up for sale as per as the needs of the company. This could also be done partially. If HP feels that it would not need much of warehouse space it can sell the same at increased profits. It depends on whether the company would now be regarded a s a make to stock or a make to order company.
* Extra products, services, and facilities: Services get copyrights which enhances the level of trade. Additional Warehouse services and distribution channels offer business values. Here HP can use all such values integrated with Compaq so as to increase its prospects. (Berry, 2010)
There are a number of mergers and acquisitions that fail before they actually start to function. In the critical phase of implementation itself, the companies come to know that it would not be beneficial if they continue as a merger. This can occur in this merger between HP and Compaq due to the following reasons.
Conversations are not implemented: Because of unlike cultures, ambitions and risk profiles; many of the deals are cancelled. As per as the reactions of the owners of HP, this seems to be extremely likely. So, motivation amongst the employees is an extremely important consideration in this case. This requires an extra effort by the CEO, Fiorina. This could also help her maintain her position in the company.
Legal Contemplations: Anti-competitive deals are often limited by the rules presiding over the competition rules in a country. This leads to out of order functioning of one company and they try to separate from each other. A lot of unnecessary marketing failures get attached to these conditions. If this happens in this case, then all that money which went in publicizing the venture would go to be a waste. Moreover, even more would be required to re-promote as a single entity. Even the packaging where the entire inventory from Compaq had the logo of HP would have to be re-done, thus hampering the finance even further. (Broc Romanek, 2002)
Compatibility problems: Every company runs on different platforms and ideas. Compatibility problems often occur because of synchronization issues. In IT companies such as HP and Compaq, many problems can take place because both the companies have worked on different strategies in the past. Now, it might not seem necessary for the HP management to make changes as per as those from Compaq. Thus such problems have become of greatest concern these days.
Fiscal catastrophes: Both the companies after signing an agreement hope to have some return on the money they have put in to make this merger happen and also desire profitability and turnovers. If due to any reason, they are not able to attain that position, then they develop a abhorrence sense towards each other and also start charging each other for the failure.
Human Resource Differences: Problems as a result of cultural dissimilarities, hospitality and hostility issues, and also other behavior related issues can take apart the origin of the merger.
Lack of Determination: When organizations involve, they have plans in their minds, they have a vision set; but because of a variety of problems as mentioned above, development of the combined company to accomplish its mission is delayed. Merged companies set the goal and when the goal is not accomplished due to some faults of any of the two; then both of them develop a certain degree of hatred for each other. Also clashes can occur because of bias reactions. (William, 2008)
Risk management failure: Companies that are involved in mergers and acquisitions, become over confident that they are going to make a profit out of this decision. This can be seen as with Fiorina. In fact she can fight the whole world for that. When their self-confidence turns out into over-confidence then they fail. Adequate risk management methods should be adopted which would take care of the effects if the decision takes a downturn. These risk policies should rule fiscal, productions, marketing, manufacturing, and inventory and HR risks associated with the merger.
Hp and Compaq would now have common channels as far as their buying is concerned. So, the benefits in this concern is that even for those materials which were initially of high cost for HP would now be available at a cheaper price. The end users are also likely to increase. Now, the company can re frame its competitive strategy where the greatest concern can be given to all time rivals IBM. The advantages of this merger in the field of marketing can be seen in the case of shared branding, sales and service. Even the distribution procedure is likely to be enhanced with Compaq playing its part. Now, the company can look forward to cross selling, subsidization and also a reduced cost.
The foremost advantage in this area is that in the location of raw material. Even the processing style would be same making the products and services synchronized with the ideas and also in making a decent operational strategy. As the philosophical and mechanical control would also be in common, the operational strategy would now be to become the top most in the market. In this respect, the two companies would now have co-production, design and also location of staff. So, the operational strategy of HP would now be to use the process based facility layout and function with the mentioned shared values.
The technical strategy of the company can also be designed in common now. There is a disadvantage from the perspective of the differentiation that HP had in the field of inkjet printers but the advantages are also plentiful. With a common product and process technology, the technological strategy of the merged company would promote highly economical functioning. This can be done through a common research and development and designing team.
The buying strategy of the company would also follow a common mechanism. Here, the raw materials, machinery, and power would be common hence decreasing the cost once again. This can be done through a centralized mechanism with a lead purchaser keeping common policies in mind. Now Hp would have to think with a similar attitude for both inkjet printers as well as personal computers. This is because the parameters for manufacturing would also run on equal grounds.
This is the most important part of the strategies that would be made after the merger. The companies would have common shareholders for providing the requisite infrastructure. The capital source, management style, and legislation would also be in common. So, the infrastructure strategies would have to take these things into account. This can be done by having a common accounting system. HP does have an option to have a separate accounting system for the products that it manufactures but that would only arouse an internal competition. So, the infrastructural benefits can be made through a common accounting, legal and human resource system. This would ensure that the investment relations of the company would improve. None of the Compaq investors would hesitate in making an investment if HP follows a common strategy.
HP would now have to ensure another fact that with this merger they would be able to prove competitors to the present target and those of competitors like IBM as well. Even the operations and the output market needs to be above what exists at present. The company needs to ensure that the corporate strategy that it uses is efficient enough to help such a future. The degree of diversification needs to be managed thoroughly as well. This is because; the products from the two companies have performed exceptionally well in the past. So, the most optimum degree of diversification is required under the context so that the company is able to meet the demands of the customers. This has been challenged by the owners of HP but needs to be carried by the CEO Fiorina. (Bhattacharya, 2010)
As a Method Analytical Technological innovation (PAT) resource, the NIR (In the vicinity of Infrared) analyser is the up coming generation technology for analysing strong and liquid chemical and pharmaceutical formulations. The patented layout of NIR delivers superior analytical functionality with improved sensitivity and specific instrument matching to improve method advancement, lower implementation time and ensure seamless approach transferability.
In the vicinity of Infrared Examination is perfect for the swift non-destructive quantification of a lot of constituents-which includes protein, dampness and unwanted fat. NIR analyser actions each liquid and powder samples with out taking away the sampling or optical accessories. The detector utilized is a DTGC detector. When changing involving liquid and strong investigation, a straightforward manual lever is rotated to open up or near a shutter in between the side port and the top bench. Liquid samples are calculated in transmission with disposable 8 mm vials. Powder samples are calculated on the facet port accent in reflectance via disposable scintillation vials.
NIR analyser can be used throughout your production procedures-from raw material inspection and in process tests to closing item launch. It is a comparatively new technological know-how for refineries to observe key items, intermediate streams and unit feed. NIR analyser offered a reduced cost choice to standard fuel chromatographs or distillation analysers. Contrary to Fuel Chromatographs, NIR probes are 100% optical, use no electric power and have no going sections. Many properties can be measured with a single analyser head. NIR analyser is best to use in laboratories as perfectly as in plant environments.
For pharmaceutical and chemical industries, NIR investigation gives increased economic advantages, enhanced exams and investigation on the dock, in the lab and on the system line. NIR tests is fully risk-free and needs no sample preparation. No hazardous squander is created considering that NIR examination needs no solvents or reagents. It can lower the value of plan testing by extra than 50% relying on the application.
How to use it
Before tests, position the instrument on a horizontal, difficult and secure floor absent from daylight. The warming up time period is about 2 several hours. The user really should ensure that the temperature of the area the place the analyser is stored be 10 to 40 diploma C.
In close proximity to Infrared (NIR) analyser is utilised as a price-effective indicates of measuring item or method consistency and excellent manage parameter in natural and organic chemical-connected or food items industries.
Standard laboratory approaches are cumbersome, expensive and involve trained staff. These solutions are much too gradual to let ample response time for control of the process. Now, NIR analysers have replaced most of the conventional solutions. These analysers can be positioned immediately in the manufacturing area and can be operated by plant personnel. The examination time is fewer than one particular moment. This gets rid of person assessment on every constituent and will save manpower, instruction and time.
Chile has been historically isolated as a result of its geographical and economic characteristics, with roughly 98% of all its imports arriving via ports. However, in the past 30 years the country has undergone a massive change, finding itself now in the vanguard of the Free Market movement – being a world leader in the signing of Free Trade Accords – and shedding its former protectionist economic policies.
As a result Chile has been at the forefront with respect to many Latin American countries when it comes to globalization and accessing worldwide markets. This in turn, has led to Chile sustaining economic growth similar to other emerging economies.
As part of this opening of the country to foreign markets the Chilean government recently redistributed political power on a regional basis with the incorporation of two new regions, the Arica-Parinacota and Los Ríos. The idea behind the creation of these two new regions was to foment revenues in tourism, mining, agriculture and communications, while at the same time aiming to empower the regions and decentralize power from the capital. The new regions were approved Mar. 15, 2007 by President Michelle Bachelet.
The government’s policies have translated in strong economic growth, with the GDP in 2007 coming in at 5.2% versus 4% in 2006. On the downside, the country is feeling effects from the current global economic malaise, with unemployment hitting 7.2% in 2007. Strong economic growth has also led to a sharp rise in inflation, up from 2.6% in 2006 to 7.8% in 2007 on the back of higher petroleum prices and the ripple effect on food prices, coupled with adverse weather conditions.
It should be noted that Spain’s economy is also going through a rough batch, with unemployment hitting 9.6% for the first quarter of 2008 – the highest it’s been in three years – the third consecutive quarter of rising unemployment. This sharp increase in unemployment has even stoked concerns the Spanish government may run-out of funds to pay unemployment benefits in September.
Still – and despite the domestic nature of current Spanish press with respect to the collapse of its construction sector and rising unemployment – the general perception of Chile in Spain is one of a Latin American country that has undergone a rigorous economic policy that has led to its being considered as an emerging country with a relatively low country risk.
In a roundabout way Chile could benefit from a struggling Spanish economy – which has been built on EU subsidies and a booming construction sector – as many Spanish companies feel they must diversify and look outside their borders for growth. Of particular interest are Spanish construction companies which have been heavily diversifying in Spain into the energy sector. Spanish companies are particularly interested in projects in Latin America, Middle East, Eastern Europe and Asia.
In Spanish business circles it is commented that Chile’s economic stability – in sharp contrast to that experienced in other Latin American countries – has made the country attractive for investment. While mining remains a sector of interest, Spanish companies are also attracted to the banking, telecommunication and electricity sectors.
Despite the strong rise in Chile’s inflation, Spanish analysts see continued economic stability in that country, with sustained economic growth, albeit at lower rates than in previous years given the current global economic downturn.
In general, it is viewed, however, that growth will most likely come from Chile’s continued emphasis on exports and a drive to entice foreign investment. To further encourage foreign investments Chile must continue to ensure not only the liberalization of its markets and financial transparency, but seek to optimize its Free Trade agreements.
That said, it is often mentioned in Spain that the downside of Chile’s economic growth is that wealth is not being equally divided among the Chilean population. More concretely, the difference between Chile’s wealthy and its poor is becoming increasingly pronounced. In this age of corporate responsibility, and with its growing importance in the Spanish corporate world, such discrepancies in wealth distribution could come into play with respect to future investments, either in positive or negative light.
With respect to Trade, Chile exports more than it imports, with energy representing around 63% of Chile’s exports in 2006, while it only imported around 25% in the same period.
Those figures are misleading, however as Chile has limited domestic energy resources, with the country importing the majority of its energy needs. Chile has shown a reliance on natural gas exports, in particular those coming from Argentina. Since 2004 – when Argentina began restricting its natural gas exports – Chile has been revising its energy policy.
Outside of energy, Chile also exports significant agricultural goods (fruits and horticultures), representing around 20% of all exports in 2006, while it only imported 7% in this category for the same year. In 2006, manufacturing goods represented around 10% of all of Chile’s exports, while it imported close to 60% in the same category of goods.
Or in other terms, Chile’s export structure is basically divided equally between industrial (45%) and mining (45%) and the remaining 10% in agricultural goods.
Within the industrial products, the largest export items are cellulose, methanol and chemical products. Of increasing importance in the last decade are forest products, salmon and wine.
It should be mentioned that while Chile is attempting to diversify away from its dependence upon the semi-manufacturing of copper – a product that represented 60% of the country’s exports in the 1970s – to 35% in 2004, this product is still overly represented in the country’s export basket and the Trade Balance as a result of global demands and rising market prices for this commodity.
Copper exports in 2007 represented roughly 45% of the total exports on a Trade Balance basis.
Chile exported $1.3 billion to Spain in 2007, down slightly from almost $1.4 billion in 2006. By comparison, Chile exported $8.4 billion in 2007 to the United States, slightly down from $8.9 billion in 2006. With respect to imports, Chile received $845 million in goods from Spain in 2007, up from $708 million in 2006. With respect to the U.S., $7.3 billion of North American goods were imported in 2007, up sharply from the $5.6 billion Chile imported in 2006.
Despite Chile’s positive economic story, that news isn’t hitting Spain – in fact, news coverage of Chile in Spain is close to non-existent. As an example, when several Spanish businessmen were asked to mention a current article that they had read about Chile they couldn’t name one. Almost invariably the response had something to do with the Dictator Pinochet or the current president, Michelle Bachelet, who is seen as a something as a novelty, in line with Argentina’s Cristina Kirchner.
Other recent news items related to Chile include: reports a Nazi “Doctor of Death,” could be hiding in Chile; the closing of an investigation in the death of popular actor and singer 35 years after his death; Chile and Hawaii are both trying to get a contract for a giant telescope; A Chilean gang was busted with objects stolen from Europe; Ongoing news coverage of Peru’s ex-president Fujimori who is being held in a Chilean prison; and the widespread access of internet in Chile.
There was widespread coverage of the EU-Latin America Summit in Chile, but again the coverage was geared for Spain’s domestic audience, with the primary news being whether or not Venezuela’s Chavez had apologized to Spain’s King Juan Carlos I – or vice versa – after the Royal told the President to “shut up” at a summit last year in Chile.
When Chile is covered in the press, it is almost always in terms related to Spanish businesses that are operating in that country. Specifically, there are repeated stories related to various Spanish energy and telecommunications companies, but in general they lack depth and are not in and of themselves the types of articles that would entice investors.
There have also been recent articles about threats to Spanish companies.
Specifically, there has been negative press regarding the US businessman Douglas Tompkins (owner of Patagonia and North Face) who it is reported is buying up land in Chile. Reports in Spain claim Tompkins is trying to buy enough land to create a wildlife preserve in the south of the country – and which would run from the Andes to the sea, effectively cutting the country in two. There are concerns this could affect Spanish company Endesa which has plans to build hydroelectric dams near the project. In typical Spanish fashion of looking for extremely bizarre details, the ABC newspaper reported speculation is rife in the Chilean region that Tompkins could be planning on exporting water or even building a new promised land for some Jewish sect.
There are occasionally articles related to tourism, but these are most often related to trade publications. In general, the perception is that there are more articles on the Caribbean, Mexico and Peru than those published on Chile. One person interviewed for this report, said they were shocked that a family member was thinking of going to Chile for holidays instead of some place more “exotic.”
There is next to no coverage of Chilean imports, although there is a moderate knowledge of the quality of that country’s wines – but this is covered in select media aimed an even more select reader, which is perhaps not surprising given Spain’s own personal, and abundant, history with wine.
This lack of knowledge is also backed up by a 2006 survey by the Spanish state agency CIS that noted that of those individuals polled on their viewing news habits, only 7.8% of the respondents said they watched “A Lot” of news related to Latin America, and 49% “Quite A Bit.” The most popular items in Spain are related to news about the European Union, followed by those about the North Africa. News items regarding Latin America were the fourth most popular items (EU, North of Africa, US, and Latin America, in that order). In general, Spaniards identify more with European countries, and North Africa, although there are some indications of change. In a late 2007 CIS survey, 31% of those Spaniards polled thought that Spain should develop programs in Latin America to foment economic growth.
However, just the previous year the CIS noted that in terms of international politics, 56% of the respondents thought European Integration was extremely important, with only 8.6% showing concern about relations with Latin America.
It is interesting to note that this shift has also been accompanied with a rise in Latin American immigrants in Spain, accompanied with rising unemployment.
Amazingly, despite 85% of those polled saying they had never travelled to a Latin American country the vast majority believed the principal problem in Latin America was a lack of democracy, weak economies and corruption. Of those who had travelled to Latin America, the vast majority visited Mexico (24.5%), while only 5.7% went to Chile.
With respect to the perception of which Latin American politicians are implementing measures to further their economies, there has been recently a dramatic shift in favor of Chile. In a CIS report released May 29, 2008 (administered in Nov. 2007), on a scale of 1 to 10, Spaniards rated Chile’s Bachelet as being the most effective Latin American leader with a 4.93 ranking. The next most highly ranked Latin American leader was Brazil’s Lula with a 4.61 out of 10 ranking. Bolivia’s Morales had received a 3.42 rating, while Cuba’s Fidel Castro got a 1.82 out of 10.
While this recent survey is not exactly measuring the same criteria, it is interesting to note that of those polled in a 2006 CIS survey, 19% of them gave Brazil’s Lula high marks, followed by Bolivia’s Morales (16%). Only 6.6% of those Spaniards polled in that survey valued the job done by Chile’s Bachelet, which in relative terms was only slightly higher than the 3.7% who amazingly thought that Cuba’s Fidel Castro was doing a good job.
Despite the improvement in the perception of Chile’s government, it remains clear that country’s message is not reaching the Spanish public, but then this is a public where 35% of the population has never heard of the Latin American Summits.
- As a result of its having the jump on other Latin American countries with respect to liberalizing its markets there is a generalized perception that in Chile there is an elevated sophistication and professionalism when dealing with Chilean businessman.
- The Chilean telecommunications and software sectors are viewed as being consolidated and highly respected.
- Tourism is a definite strength with not only majestic views, but also the added benefit that it’s viewed as safe to travel to remote locations, unlike in several other Latin American countries. After all, what good is a vacation if you can’t come home to develop the photos.
- As mentioned repeatedly in this report, Chile’s economy is seen as a definite bonus, with the government fully seeking to follow a Free Market model, and entice foreign investors.
- A willingness – and business code – to allow foreign investors buy or create businesses in Chile without any type of restriction of discrimination toward foreigners.
- A favorable tax regime, which avoids double taxation with Spain. Direct tax on Companies/Societies is 17% on profits; Indirect tax of VAT 19%.
- Patent protection: Chile subscribes to strict patent protocol, including that of the Paris accord and recognizes those patents that were issued in other countries. Patents should be registered also in Chile to receive full protection.
- Common language – Spanish – and in many respects a common culture and religion. This is not to be downplayed as Spaniards are notorious for there horrible grasp of foreign languages. o The current strength of the Euro also makes investments in Latin America attractive.
- As mentioned previously, one area that will increasingly draw criticism from stakeholders and activists is in the area of distribution of wealth. In Chile the lines between those who have and those who don’t have are increasing.
- Chile’s energy network/grid has shown signs in the past (1999) of needing further investments to avoid shortfalls in production and supply.
- Chile’s energy portfolio is certainly a weak point, which while the country does have some renewable energy sources – most notably in the area of hydroelectricity – there is a deficit with respect to gas and oil, the result lending to supply shortages.
- While Chile is “an open market” there is actually tight control on the distribution channels – roughly 80% of retail distribution is handled by 20% of the distributors, which would suggest that this area needs to be liberalized.
- With respect to the above point, when introducing some consumer products distributors will demand additional support for publicity and promotions, for which the foreign companies will have to be willing to provide.
- Given the tight control on the retail supply chain and distribution at times it is viewed that certain participants hold too much power when it is time to negotiate business terms.
- While taxation is generally lower – except for alcoholic beverages (27%), there are also some barriers for the importation for motor vehicles and parts.
- There have been some reports tighter controls on press freedom. In Spain there was coverage recently of a Committee to Protect Journalist report (May 23) that Chilean photographer Víctor Salas suffered a serious eye injury on Wednesday when he was struck by a police officer as he was covering a protest outside parliament in the southwestern city of Valparaíso. Salas works for the Spanish state news agency EFE.
- While Chile’s economy is a positive, it is also showing some signs of growth slowing down, and unemployment and inflation both rising.
- For the most part Chile has avoided political financial scandals, although that has recently changed – and which oddly seems to be the product of a stuffy government process inherited from Dictator Pinochet. o Indeed, Pinochet remains a weakness in terms of branding and marketing, perhaps not helped by the ongoing leaks, trials and reports. On the other hand, Spain has something to offer in this area as it also seems to have recovered from a similar situation under Franco.
- Some Spanish businessmen said they cannot understand why there isn’t a full agreement between Chile and Mercosur, rather than just being an Associate Member.
- Given the current makeup of Chile’s energy sector – its dependence upon gas and oil, etc – this should provide the country an opportunity to invest in renewable energies, such as in solar and wind-power, areas in which Spain has several leading companies. Iberdrola, Acciona, Endesa, Gamesa, ACS amongst others are more than qualified to bring their technology and know-how to Chile.
- Chile is also diversifying into the LNG market, an area where Spanish companies are world leaders.
- Chile can be a platform to enter other countries given its vast Free Trade agreements. Specifically, foreign investors can take advantage of a Law signed Nov 23, 2002 that seeks to foment foreign investors to use Chile as base to enter other Latin American and global countries. Spanish companies and investors are especially suited to take advantage of such legislation given the cultural similarities and common language in the region.
- Chile offers growth and investment possibilities in the construction sector, especially in the area of building second homes.
- Chile continues to offer important investment possibilities in the area of tourism.
- Chile offers a stable and dynamic market that is supported by a professional manner of doing business.
- One sector that is currently undergoing spectacular growth, and which Spanish companies can bring their know-how and investments, is in the area of “green” projects, related to sustainable growth, corporate responsibility and environmental protection.
- The Chilean market is extremely competitive in terms of the relationship between price and product, which means that there is room when negotiating for value-added services or products when seeking positioning in the market and client-customer loyalty – something that Spanish companies can provide.
- The Spanish government has made it a priority to invest in science and technology, meaning there could be clear opportunities to do business in Chile given that government’s economic policies that also seek to foment investments in this sector.
- There are continued supply concerns with respect to not only electricity, but also in the area of agricultural products.
- Chile must resolve its outstanding border disputes with Peru and Bolivia.
- There does exist the threat of the influence from populist Latin American governments in Chile’s politics, most notably from Venezuela, Ecuador and Bolivia.
- Given Chile’s geography there does exist the constant threat of earthquakes.
- Environmental concerns:
- Significant threats to Chile’s freshwater and marine habitats are caused by the ever growing aquaculture industry – primarily salmon farming.
- The establishment of non-native tree plantations is considered by many to be the greatest threat to Chile’s native forests.
- The primary environmental threats to Chile are air pollution from vehicle and. industrial emissions, water pollution from untreated industrial sewage.
With respect to what most positively affects a country’s perception in Spain it must first be stated that Spain is very nationalistic. There is a love-hate relationship – some would say envy – with various countries based on historical incidents.
In addition, Spaniards love rankings and continually are publishing articles to show that they are in the vanguard. This at times is extreme, to the point where there have been articles comparing how many cigarette butts, or trees – or worse – can be found on the streets of various European capitals.
More specifically, Spaniards might admit that certain products from the U.S. are top-quality, but they won’t let that sway them from still dredging up the Spanish-American War of 1898 and complaining of the loss of territories. Americans are consistently portrayed as being naïve and religious fanatics, while at the same time being hypocrites. It is a common game in Spain among American ex-pats to look for the “strange or bizarre American news story” that Spanish media routinely publish.
In the same way, there has been extensive news coverage this year to celebrate the 1808 war again France – which while it freed Spain from the French was also the beginning of its decline in influence in Latin America. A weakened Spain subsequently found itself facing Wars of Independence in Venezuela and Argentina.
All to say, that Spain – and Spaniards – have a long memory, and some would argue an inferiority complex.
Spaniards, besides being nationalistic, are also idealists. Countries with the most positive image perceptions in Spain have a strong record in Human Rights and Democratic ideals, fortified by solid economic models. In this respect of equal importance are countries that can contribute in the areas of Culture and Art, and High Technology. Spaniards are big spenders who love the latest high-tech gadget, and in that vein luxury goods.
With this in mind, it is interesting that according to a recent study by BBC, only 31% of Spaniards consider it a positive factor that China is an economic powerhouse. Indeed, according to that study out of all European countries it is Spain that holds the distinction of having the most negative image of China.
On the backdrop of the above information, the typical Spaniard tends to associate his spending by what is popular and trendy, rather than as being related to a specific country.
By Robert Steven Duncan
The Clever Property Automation sector in the United Arab Emirates (UAE) has been escalating at a speedy tempo because its dawn in excess of the last many many years. The marketplace is starting to be extra and a lot more informed of the abilities of acquiring a entire automation technique whether or not at the scale of unique residences, palaces, authentic estate developments, and motels. Many developments in Dubai and Abu Dhabi have currently been done with a pre-put in automation system. A lot of developments in places like Victory Heights, Arabian Ranches, Athletics Metropolis, and Reem Island have also been constructed with infrastructure to guidance this sort of technologies in the foreseeable future.
In standard kind, automation incorporates devices that command Lighting, Appliances, HVAC, Curtains and Multimedia. The market place in the UAE has not only started to realize the rewards in conditions of convenience, protection, and luxurious. But also in conditions of vitality preserving and increasing property value, thus all these realizations will keep on to lead to a booming market place in the UAE.
As automation is considerably of a new technology in the mainstream marketplace, 1 will have to be aware of the numerous selection of fundamental technologies that hook up and enable for the interaction concerning a user and the Gentle Dimming Techniques or Air Conditioning Devices. On the floor, these technologies may possibly appear to guide to the very same functionality, but in the back-close, they are different in likely catastrophic techniques. This potential customers us to the reason why we began composing this write-up, that is, to drop light on to the pros and disadvantages of the different technologies (irrespective of products or seller) which are available in the UAE current market nowadays.
Any automation process is composed of 2 higher-stage elements, the controller, and the modules. The modules include things like light-weight dimmers, relay switches, thermostats, motorized curtain command units, dispersed speakers..and so forth. which are to be controlled by the dwelling operator. The controller, is the heart of the technique from which signals are sent to “Dim the lights” or “flip on the air conditioning”. The method of conversation in between the controller and the modules are the Automation Communication Technological know-how which we would like to deal with in this post. The process of communication can both be through wires or wireless and are ordinarily in line with selected protocols or criteria of conversation. This article will discover and look at KNX, X10, Zigbee, En-Ocean, and Z-wave.
The criteria for comparison which we will investigate are the adhering to:
- Reliability of Interaction: How responsible is the conversation concerning the Controller and the Modules? When a concept is sent to a module, the system will have to make certain the message’s arrival and affirmation of receipt. Scoring effectively in this criteria is incredibly vital to be certain that even less than circumstances of wired or wireless interference messages are resent until verified by the obtaining module. Not all protocols comply with this need.
- Stability of Communication: The protocol have to assure that a 3rd party cannot infiltrate an present process and function it with unauthorized obtain. The outcomes of a hacker coming into a parking good deal of a hotel and turning all its lights off is disastrous.
- Features and Capabilities: It is vital that automation technologies go outside of just managing personal modules and have the functionality to integrate with other units most usually enjoyment given that that is an region of superior usage of any residence proprietor. Example: Straightforward Integration with Multi-home Tunes Techniques, Multi-room multimedia distribution techniques (Flicks, Video clips, Photographs, Audio)…etc.
- Expenditure Security: It is vital to make confident that mounted Controller or Modules can be effortlessly changed in the long run. Take into account possessing installed a system that has some parts fall short immediately after 5 many years, and at the identical time, the firm which installed it grew to become bankrupt. The residence owner would be left with no preference but to completely revamp the total electrical method in the residence which would charge far more in time, labor, and tools that what was at first paid out for the automation method. Possessing a technique that is standardized implies that any other business can guidance it or change particular pieces with different products and solutions, perhaps from distinct sellers, in purchase to assure ongoing operation.
- Interoperability: This standards refers to the capacity of the Controller to discuss to many Modules from unique brands. This will ensure that a method is manufactured up with Lighting, HVAC, Curtains, Appliances, and Multimedia Handle Modules are procured from distinct brands which are the finest or most specialized in those fields. This makes sure that a method has the most effective-in class Modules for every unique function. It is not reasonable that the ideal producer of mild dimmers is also the best maker of curtain control programs, or audio devices. Some communication protocols are shut or proprietary, consequently forcing the customer to buy anything from a one manufacturer. This criteria also overlaps with the Expense Security Requirements due to the fact acquiring an interoperable technique will give long run versatility to effortlessly switch Modules even if the business which mounted them has shut down.
The remainder of this doc will handle every single communication know-how based mostly on the higher than criteria.
KNX is an global standard of conversation generally set up in wired twisted pair environments. KNX was developed in 1990 and was produced as a really strong protocol to be employed in industrial automation apps. The protocols dependability simply cannot be questioned since it implements lots of OSI conversation layers and is pretty intricate. KNX is also controlled by the KNX association and any company generally spends hundreds of dirhams on their staff to go by training in purchase to realize the inner workings of the procedure. KNX is a complex protocol by mother nature, and was designed extensive before the “intelligent property” idea was born, consequently the hardware that has the functionality to help the complexity of KNX is costly not only to engineer, but also to manufacture and as a result the hopes for this technological know-how to turn out to be more cost-effective than its current options is futile.
KNX has and is a popular preference for resorts considering the fact that 2006 and has been deployed in quite a few developments these types of as the Shangri-la in Dubai, Rotana Lodges in the Marina, Fairmont, Movenpick to name a several. KNX is also currently being specified by numerous true estate consultants for important developments in the Abu Dhabi Reem Island and Yas Island.
- Trustworthiness of Conversation: Yes
- Safety of Conversation: Certainly
- Price tag: No
- Characteristics and Capabilities: No. KNX has been a lot more targeted at the very simple facility of automation and generally fits in lodge environments where by customization and multimedia integration is not essential.
- Investment Defense: Certainly
- Interoperability: Yes
X10 is an international open up conventional created in 1975 by Pico Electronics of Scotland, in buy to make it possible for distant handle of house gadgets and appliances. It mainly works by using the 220Vpower line wiring for sending messages involving the Controller and the Modules (Lighting, HVAC…and so on).
X10 has only receyved some reputation a lot of many years ago when automation engineering commenced getting introduced in the UAE. And was generally set up in smaller villa task then was gradually discontinued owing to its dependability concerns.
- Reliability of Interaction: No. Considering that it is susceptible to interference from a number of resources like transformers, motors normally identified in TVs, washing devices, admirers…and so on. Also, messages from Controller to Modules are in no way acknowledged so there is no 2-way interaction.
- Security of Interaction: No. If a 3rd bash can faucet into the powerline of a house, messages can easily be despatched to command no matter what the 3rd celebration needs.
- Rate: Yes
- Capabilities and Capabilities: Indeed. This engineering can easily be built-in into Laptop based mostly methods and quite a few solutions are offered to provide element prosperous capabilities for household purposes.
- Expenditure Defense: Of course
- Interoperability: Sure
ZigBee is an open up wireless network interaction protocol dependent on the IEEE specification IEEE 802.15.4, which permits the Controller to communicate with its Modules through Radio Frequency. The conventional is a growth of the ZigBee Alliance, which was launched in the close of 2002. It is an sector alliance of more than 230 enterprises who get up the all over the world improvement of this engineering. The initially ZigBee goods came on the industry in the beginning of 2005. Since Zigbee standardises only the decrease protocol layers (radio layer), the distinctive suppliers have described their own higher software layers. As a result ZigBee products of diverse companies are not appropriate with just about every other.
- Dependability of Communication: Indeed. A wi-fi mesh network is established and ensures various path routing to each individual module which interprets to prolonged arrive at, and large dependability in case of interference or even in scenario of in-route device failure.
- Protection of Conversation: No. Zigbee utilizes weak hashing algorithms and has been researched to be penetrable. Penetration is not quick but software program equipment these types of as “Killerbee” exist and can allow any individual with little Linux and scripting working experience to hack into an existing Zigbee network.
- Price tag: No
- Features and Capabilities: Indeed
- Financial investment Safety: Sure
- Interoperability: No
EnOcean is a wireless radio frequency dependent, energy harvesting know-how employed mostly in constructing automation programs. It is not established out for worldwide, European or countrywide standardization however, EnOcean GmbH is supplying its technology and licenses for the patented capabilities less than license within the EnOcean Alliance framework. The notion was made to empower batteryless sensors and switches for constructing automation. Which is questionable in terms of vitality saving simply because existing solutions can consume as tiny as 500W for each 60 storey tower in automation devices.
EnOcean primarily based systems have been mounted in some large assignments these kinds of as the Abu Dhabi Central Market, the Dubai Economic Middle…and many others.
- Reliability of Conversation: No, En-Ocean does not provide 2-way interaction involving the Controller and its Modules. Also the Controller is at a star network with the Modules and there is no wireless meshing, this one particular-to-one sign mapping can drastically fail in occasions of substantial interference.
- Safety of Communication: Yes
- Price tag: No, En-Ocean costs are much more aligned with KNX.
- Functions and Capabilities: No. Supported but not nonetheless viewed in the current market.
- Investment decision Defense: Sure
- Interoperability: Yes
Amongst all the higher than protocols, Z-wave ranks the finest so significantly. The strength of Z-wave lies in the major number of different products and solutions from distinctive producers as properly as the pretty strong, 2-way, meshed, and secured wireless conversation. Z-wave chips also consume a 10mW at peak and are reduced expense when compared to all other solutions. Why? since Z-wave has been originally made for residential programs.
Z-wave is considered as the upcoming era of Wise Residence Technological know-how and item strains have began to emerge from significant gamers these types of as Honeywell and Schneider Electric. This know-how is not only feature comprehensive, reputable and secure, but will be made available at competitive price ranges and investment safety for initiatives of any dimensions starting with unique villas all the way to big authentic estate towers. As of these days, Z-wave has been deployed in several villas in the UAE at an person scale. Z-wave is also setting up to make its way as a result of a lot of of the substantial tenders for developments throughout the Emirates.
- Trustworthiness of Conversation: Certainly
- Safety of Interaction: Indeed
- Rate: Yes
- Options and Abilities: Yes
- Financial commitment Protection: Of course
- Interoperability: Certainly
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