How far had the British Government abandoned the policy of laissez-faire by 1914 Essay Example

How far had the British Government abandoned the policy of laissez How far had the British Government abandoned the policy of laissez-faire by 1914 Essay How far had the British Government abandoned the policy of laissez-faire by 1914 Essay Essay Topic: Claim of Policy 100 years ago 3/4 of the population in Britain were merely working class, 1/3 were living in severe poverty. Life expectancy was short and infant mortality rates were absurd, in Scotland 13 out of every 100 babies would die before they reached the age of one. The government and many rich, prosperous people believed in Self help not State help, many possessed the saying of heaven helps those who help themselves. Overall, in their opinion it was up to the individuals to look after themselves. Many things contributed to the Government finally realising that Britain was at a stage where state intervention was greatly needed. The colossal divide in social classes in the 1800s to early 1900s resulting in many people falling in to great poverty highlighting the lack of efficiency in the Governments laissez-faire ideology. The findings of Booth and Rowntree lead to a national uproar at the high number of people in Britain living without a decent house and enough money to feed a family for a week. By the year 1914, the British Government had abandoned the policy of laissez-faire to a certain extent. David Lloyd George, or otherwise known as The Father of the Welfare State wanted to enforce state intervention to such an extent that it would provide the country with enough help to create a healthy Britain. His initial plan included a state funded National Health Service (NHS), state funded education, unemployment benefit and a state pension. He called this The Welfare State. So why did the British Government resort to abandoning the policy of laissez-faire? The Boer War of 1899-1902 proved the British National Efficiency to be extremely low. Over half of the applicants who seeked work in the army were rejected simply because they were not fit enough. Many people highlighted the fact that if there were no fit or healthy soldiers then there was no protection for Britain as a country or their colonies. Furthermore, if the British workforce were unhealthy then the trade and exports would decrease because of an insufficient output of goods. In January 1906, the Liberal party won 400 seats in the House of Commons, thereby a majority and gaining power. The Liberals strongly believed in state intervention and with Sir Henry Campbell-Bannerman in power till 1908 and thereafter Herbert Henry Asquith, they passed various reforms between 1906-1914, which did in a way remove the old laissez-faire ideology. These liberal reforms targeted many areas of society, but in particular one group that was helped a great deal were the children. Between 1906-1914 the Government passed various policies that would help the growing concern in the deterioration of childrens health and education. In 1906 the School Meals Act was passed, this gave the local councils the opportunity to provide free school meals to children who were in need. However, parents able to afford to pay, were expected to do so. A lot of local authorities failed to undertake this idea, consequently in 1914 the government made the provision of school meals compulsory. In regards to their health, the government passed the 1907 Medical Inspection in Schools Act allowing childrens health to be monitored in school, the dejected reports sent in by doctors thus allowed the local authorities to set up clinics in school in 1912, allowing doctors to regularly check on the health of children. These reforms helped the government to help the people and progress gradually from laissez-faire. However, the cost at times was extortionate- it was easy enough to identify the illnesses but providing the medicine needed was costly. By 1908 various people had recognised that the major causes of poverty were low wages, unemployment or irregular earnings. Others recognised that there was a major damage to health through long working hours and the working conditions, and so after 1908 the government introduced various state intervention policies to help those who were employed to have improved standards and in 1908 the working day for a coal miner was cut to 8 hours, in certain sweated trades the trade board set up boards to control wages and working conditions. On the other boat, help was needed for the unemployed and so in 1911 the National Insurance Act was passed. This was the most radical reform of all and was a major break through in social reform. It worked in two parts; (i) the sickness insurance benefits, which entitled workers to 10s. per week for a period of up to 26 weeks for health reasons and medical treatment for free from a selected doctor. Money to provide this service to workers came from 4d a week from workers, 3d a week from employers and 2d a week from the state. So really the majority of money wasnt being provided by the state! ii) The unemployment benefits- a certain amount of weeks had to be worked before you could receive any benefits, again you could only claim for up to 26 weeks and those cyclical workers e. g. house builders were not covered because it was classed as seasonal work. At this stage the friendly societies, which provided help for the poor, were almost put out of business buy the N. I Acts. Although, these friendly societies did eventually recover to help those workers who were not covered by the governments national insurance policy. The Labour exchanges (or job centres) were also set up to encourage workers to look for work. And so, these acts passed to help the employed and unemployed were another sign of the British Government abandoning their laissez-faire policy and taking a step forward to state intervention. In 1908 the old age pension scheme was set up. This policy was yet again another policy that had been influenced by the ideas and findings of Charles Booth. He, alongside others had stressed the importance in the welfare of the elderly people of Britain for many years. When in 1908 the pensions were made available, they were only given to those over the age of 70 and to whom the government means testers felt were the most deserving. Although this scheme was most definitely state intervention and not laissez-faire it was certainly not generous. It cost the British Government i 8 million to provide for 668000 people, which helped to add to the budget crisis of 1909. it was not as successful as the other schemes introduced in other aspects of society as the budget was too low and the age limit too high in accordance to the lower life expectancy at that time. Hence, by gathering all of the policies and acts above, which targeted all areas and problems in British society at the time, the British Government had abandoned the policy of laissez-faire to a certain extent However, the introduction of a welfare state and state intervention, with the abandonment of laissez-faire has not occurred wholly. A welfare state did not fully exist yet and the system was still showing signs of laissez-faire. There were still various problems that did not allow laissez-faire to be fully abandoned. The liberal reforms did not create a full Welfare State, this was because of various reasons. To start with although the government was providing health insurance for sick workers, it still did not provide the country with a National Health Service. Secondly, the services provided to ill workers and unemployed workers did not cover their family and so left them without any benefit whatsoever. Furthermore, the pension scheme was insufficient and didnt target the majority of elderly people in urgent help. Finally, another major problem was that the unemployment did not cover the bulk of problems raised by those in need. The failure to fully abandon the laissez-faire ideology was also partly because of the mixture of opinions within the House of Commons and also the general public. Many people favoured the Liberal Reforms and the desertion of laissez-faire, for example the Labour Party, the working class and the middle class (who shared mixed views). However, there was also various opposition who were in favour, for obvious reasons of laissez-faire. This opposition was the Conservative Party and the upper class that didnt see a problem with laissez-faire as the problem of poverty and ill health did not really ever involve them, and if it did they could afford the doctors bills. The upper classes were also basically excluded from the liberal reforms because most of the policies introduced did not effect their lifestyle. To conclude, the British Government had only abandoned the laissez-faire policy by 1914 to a certain extent. By 1914, I feel that the Liberals had created a series of stepping-stones and foundations on which they could eventually build up a full welfare state. They had introduced various acts that brought state help along to the children, the elderly, the employed, the unemployed, the sick and the needy. However the state help provided by the British Government did not cover everyone in the country, people were excluded from the benefits (the prosperous) and therefore were still living by the old laissez-faire policy. The acts and policies introduced although bringing along various good points and benefits did come with a variety of problems that needed to be solved along with budget problems. And so, overall the British government still had various problems and issues to resolve before they could fully abandon the laissez-faire policy and take on Lloyd Georges long needed ideological policy of The Welfare State.

ACT Percentiles and Score Rankings

ACT Percentiles and Score Rankings SAT / ACT Prep Online Guides and Tips What’s the difference between a good ACT score and a great ACT score? One way colleges make that distinction is by looking at ACT score percentiles. ACT score percentiles help colleges compare students with one another, rather than just looking at everyone’s individual score. Learn more about your ACT score percentile so you can maximize both your study time and admission chances. Then, find out your current score percentile using our detailed charts. What’s an ACT Percentile Ranking? Your percentile ranking is a comparison of your ACT score with everyone else who took the test. Specifically, your percentile tells you how many people you scored higher than. The ACT will give you a percentile ranking for your composite score as well as for your four subject-area scores. (For more on how the ACT is scored and how your composite is calculated, check out our guide.) Your ACT score percentile is not like a grade out of 100;rather, it’s a comparison between you and other students. For example, if you get in the 70th percentile, this means you scored higher than 70% of test takers. It doesn’t mean you got exactly 70% of the test questions correct. (In fact, the ACT is tricky enough that if you got about 70% of the questions right, your ranking would be closer to the 75th percentile.) What Are the Current ACT Score Percentiles? Now that you know about percentile rankings, it’s helpful to know what the ACT percentiles actually are, both for composite scores and individual section scores. You can use the following chart to find percentile rankings for your overall ACT composite score and for each section (English, Math, Reading, and Science). To find your percentile, first find your score between 1 and 36 on the left-hand side, and then slide over to the correct subject area or composite to see your percentile ranking. For example, a composite score of 30 has a 93rdpercentile ranking, but a Reading section score of 30 has an 87thpercentile ranking. Here's the most recent ACT percentile data from 2018: Score English Math Reading Science Composite Score 36 100 100 100 100 100 36 35 99 99 99 99 99 35 34 96 99 97 98 99 34 33 94 98 94 97 98 33 32 93 97 92 96 96 32 31 91 96 89 95 95 31 30 90 95 87 94 93 30 29 88 93 94 92 91 29 28 86 91 82 90 88 28 27 84 88 80 88 85 27 26 82 83 77 86 82 26 25 79 78 74 82 78 25 24 75 73 70 77 74 24 23 70 68 66 71 69 23 22 64 63 60 64 64 22 21 59 59 54 57 58 21 20 53 55 49 50 52 20 19 48 51 43 44 46 19 18 44 46 38 37 40 18 17 40 38 33 30 34 17 16 36 29 28 25 27 16 15 30 18 22 18 21 15 14 24 8 18 14 15 14 13 18 3 13 10 9 13 12 14 1 9 6 4 12 1 5 4 1 10 6 1 3 2 1 10 9 3 1 1 1 1 9 8 1 1 1 1 1 8 7 1 1 1 1 1 7 6 1 1 1 1 1 6 5 1 1 1 1 1 5 4 1 1 1 1 1 4 3 1 1 1 1 1 3 2 1 1 1 1 1 2 1 1 1 1 1 1 1 Source:ACT.org Did you know an improvement of 4 points on the ACT will revolutionize your chances of getting into your dream school? Download our free guide to the top 5 strategies you need in your prep to improve your ACT score dramatically. One important thing to note is thatthere's really no difference in percentiles at the highest and lowest score ranges. At the upper end, anything higher than a 34 composite score is in the 99th-100thpercentiles. Similarly, at the lower end, any composite score between 1 and 8 is in the 1stpercentile. However, things change quickly in the middle. For example, a 3-point jump from 17 to 20 raises your percentile from the 34th to the 52nd- or, from below average to average. To take another example, a 3-point jump from 26 to 29 takes you from the 82ndpercentile to the 91stpercentile. Getting into the 91st percentile is fantastic because it puts you in the top 10% of all test takers. What all of this means is that if you get a lower or middle-range composite score, raising it by just a few points can have a dramatic effect on your percentile ranking and thus your college admission chances. In addition, unless you're shooting for the most elite schools, if you get a 34 composite or higher, you probably shouldn't worry about having toretake the ACT. What About ACT Subscore Percentiles? ACT subscores give you more detail about your performance on the ACT and what specific areas you can improve on. However, as of late 2016,ACT, Inc.,no longer releases public information about percentile ranks for ACT subscores,so the only place you can get information about your performance on subscores compared with other test takers is your own ACT score report. If you haven't taken the ACT and are curious, you can take a look at this sample score reportfor the 2017-18 testing year. Note thatcolleges likely will not look too closely (if at all) at your subscores. When it comes to the ACT, your overall composite score is most important.It's the number most colleges use when reporting admitted student score ranges, and the scoremost often used to determine scholarship recipients. Ultimately, subscores can be used to give more context about your performance, but they're not be-all and end-all numbers. Does My ACT Percentile Actually Matter? Percentile rankings are important because they help colleges compare your ACT performance with those of other test takers. But the ACT score ranges for the colleges you're applying to are far more important than your overall percentile ranking. Colleges have average ACT score ranges for admitted students that usually don’t change drastically from year to year, and they rely on these ranges when making admissions decisions. This range is the middle 50%, or the 25th and 75th percentile scores,of admitted applicants. To find ACT score ranges for a college, search "[School Name] ACT scores PrepScholar." By doing this for all of the colleges you want to apply to, you can come up with a target ACT score. Your goal score will then be equal to the highest 75th percentile score for your schools. The goal is to get a higher than average ACT score for your dream college. Though your target score is most important, ACT percentiles can help you interpret your own scores better. For example, say you got a 30 on Math (95thpercentile) and a 24 on English (75thpercentile). Without percentile data, it would be hard to say exactly how much better you did on Math than on English.But with rankings, you can see that your Math score is excellent and your English score, while strong, could be improved- a 3-point jump to 27 could net you an 84th percentile score. To sum up, percentiles are a very helpful tool, both for college admissions officers looking at your application and for you in your own studying. But rather than obsessing over your ranking, aim for a score that is competitive for the colleges you want to go- this willgive you your best shot at getting into your dream school! What’s Next? Now that you know about the importance of percentiles, learn more about the average ACT score and come up with your own personal target score. Dreaming big? Find out what ACT scores you need to get into the Ivy League. And if you’re aiming for perfection, check out our guide to a perfect 36, writtenby our resident full scorer. Want to improve your ACT score by 4+ points? Download our free guide to the top 5 strategies you need in your prep to improve your ACT score dramatically. Have friends who also need help with test prep? Share this article! Tweet Halle Edwards About the Author Halle Edwards graduated from Stanford University with honors. In high school, she earned 99th percentile ACT scores as well as 99th percentile scores on SAT subject tests. She also took nine AP classes, earning a perfect score of 5 on seven AP tests. As a graduate of a large public high school who tackled the college admission process largely on her own, she is passionate about helping high school students from different backgrounds get the knowledge they need to be successful in the college admissions process. Get Free Guides to Boost Your SAT/ACT Get FREE EXCLUSIVE insider tips on how to ACE THE SAT/ACT. 100% Privacy. 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Sustainability Written Report Essay Example | Topics and Well Written Essays - 750 words

Sustainability Written Report - Essay Example Originally, geothermal energy was used in hot springs as early as Paleolithic times according to a study made by Cataldi (1993) about the history of hot springs before the Modern Period. Technically, the first geothermal energy harnessed lighted a few light bulbs. The following accounts relate how the world recognized geothermal energy: On July 4, 1904, Prince Piero Ginori Conti tested the world’s first geothermal generator at the Larderello dry steam field in Italy. Merely a couple of years later, this invention was deployed commercially and used to operate drilling equipment. Soon the small town of Larderello was using geothermal power for all its electricity requirements. (History of Geothermal Energy, http://www.economywatch.com) Because of the said event, it is no wonder that Italy maintained the position as being a top producer of geothermal energy for many decades. New Zealand followed suit only fifty-years later. The United States took the risk and invested in the Geys ers Geothermal Field in California which is currently the largest producer of geothermal energy in the world. This location has five power plants and Chevron Corporation spearheads in providing geothermal energy to millions of American homes. Uses of Geothermal Energy Geothermal energy has many useful purposes, with electricity generation as its most widely-known use. Bioeconomicfuel.com cites the 5 different uses of geothermal energy (Stern, 2009): 1. Industrial and Agricultural Uses A good example of which is the role of geothermal energy in drying up timber. In New Zealand, the â€Å"Tasman Pulp and Paper Mill uses geothermal steam in heat exchangers to heat kiln air to 140?C for timber drying†( Stewart, 2009). Aside from timber, crops can also be dehydrated using geothermal energy which makes this type of energy very useful for agriculture. 2. Food Processing The food processing industry can harness the heat from geothermal energy for sterilization process as well as dryi ng. In India, Chandrasekharam (2001) published a paper that advocated the use of geothermal energy in food processing since India’s topography is viable for this type of food processing. However, the United States had already applied that concept way back in 1978 when it opened the geothermal food processing plant in Brady Hot Springs, Nevada. In fact, â€Å"More than 25 million pounds of dehydrated onion and garlic are now being processed annually in Nevada â€Å"(nrel.gov, Oct 2001). This fact just attests to the huge capacity of geothermal energy in providing clean energy at a lesser cost. 3. Electricity Generation The Geothermal Energy Market Report shows that in 2005 alone, the top ten countries used 97% of geothermal energy for electricity generation purpose (refer to Appendix A). According to the International Energy Agency, â€Å"geothermal energy currently supplies less than 1% of the world's total energy demand†. Nevertheless, it has an enormous potential t o mitigate climate changes by reducing the use of carbon fossil fuels. It is a considerable source of renewable energy. In the case of Philippines, (which is second to the United States in using geothermal energy), it has a potential to become one of the world’s largest producer of geothermal energy. Currently, geothermal energy supplies 27% of the country’s electricity (www.philippines. hvu.nl). During the World Geothermal Congress in 2000, it was declared that the â€Å"

Western Civilization Essay Example | Topics and Well Written Essays - 500 words - 2

Western Civilization - Essay Example In reference to the creation of the universe and the formation of galaxies which are found to have taken place under a great deal of time and evolution, one must figure how indispensable a â€Å"first cause† is for according to Aquinas, an infinite series of causes is not possible. Though the universe seems infinite in space with unfathomable mysteries left to be explored, it has its beginning and thus, a cause which is itself not subject to a prerequisite of a separate cause. This proof serves a link and support to the fourth proof which accounts for the statement that God is the â€Å"greatest being†. Scientific efforts have heretofore shown evidence of how vast the immeasurable universe is and that our solar system is merely comprised in the Milky Way galaxy out of the hundreds of billions of galaxies known so far and this fact certainly leads us to imagine how astonishingly immense the Maker is of all these already colossal things. By the fifth proof, the saint argues â€Å"whatever acts for an end must be directed by an intelligent being.† Gravitational pull or force of gravity, as majority are fully aware of, keeps everything in place and puts the universe in perfect order as if it has originated from a thinking source that knows how to calculate, premeditate, and discern the heart of nature with remarkable sensibility. Looking at the symmetry widely present throughout creation within and beyond earth, it is rather difficult to deny that something or someone intelligent is responsible for the orderly structure and state of equilibrium. Otherwise, neither this world nor the overly extensive dimension it is a part of would have survived if it were to emerge from chances at random instead of through God’s intelligence by which logic and beauty alike are preserved. At this stage, it makes all the more sense to declare the third proof with conviction that God, indeed, is

Kantian and Utilitarian Essay Example for Free

Kantian and Utilitarian Essay Kant believed in an absolute moral law that he called the Categorical Imperative. It is this imperative that determines our duty. (2) Two formulations of this imperative can be used to determine the morally correct action that Alistair should choose. The first formulation, The Formula of Universal Law: Act only on that maxim through which you can at the same time will that it should become a universal law [of nature]. (2) Alistair has two possible maxims to act upon. These maxims, if it were universally applicable, are: â€Å"Anyone may lie in order to promote increasing human welfare† and â€Å"Everyone always tells the truth†. The first maxim is contradictory. If people had the option to lie, it negates the system of trust on which the world is built. When, for example, I put my money in the bank, I trust them to keep it safe. If the first maxim was universally accepted, I could not trust without reservation that the bank would keep my money safe because they would be able to give my money away if they felt it would increase the welfare of those less fortunate. If this was the case, there would be widespread mistrust and, ironically, it would have a negative impact on human welfare. The second maxim is universally applicable and is thus, according to Kant, the maxim on which to act upon. The second formulation, The Formula of the End in Itself: â€Å"So act as to treat humanity, both in your own person, and in the person of every other, always at the same time as an end, never simply as a means. †(2) If Alistair were to withhold the truth about the bribery, he denies the rationality of the board and denies that there is any rational action for them to perform. He denies them the option to rationally make a decision on what to do about the situation. In doing this he is using the board merely as a means to ensure the delivery of the medicine. According to Kant, for Alistair to use the board as a means in themselves, he would have to tell the truth. According to Kant’s theory, the action of ignoring the bribe fails the first and second formulation of the Categorical Imperative, thus the right thing to do would be to tell the truth to the board of directors. Utalitarian Theory Looking back at the case study it is clear that, on the one hand, people are receiving inexpensive kits of medicine, the drivers don’t get shot and the reputation of the relief organisation and the director is still intact. On the other hand, the board doesn’t know about the bribery, thus the unethical activity cannot be put to a stop. Utilitarianism is a theory based on consequences, not the action leading to the consequence. This theory holds that we should choose those actions that would result in the greatest amount of good in the interest of the greatest number of people affected by our actions. 1)(4) The â€Å"good† is anything that, directly or indirectly, brings happiness or pleasure. (4) The consequences of each particular action is considered to determine which outcome will best serve the greater good. (3) Act Utilitarianism prescribes that every situation be evaluated independently. The action that leads to the greatest net outcome of utility is then c onsidered to be the correct choice. According to this theory, Alistair should choose the action that will maximise happiness and minimise unhappiness. Alistair has two possible choices with two different consequences. The first is that Alistair tells the truth about the bribery. The possible outcome of his choice are the following: the drivers stop receiving cash and get shot, the contract is terminated and the less fortunate stop receiving their medicine, the director in charge of the contract is fired, and the relief organisation suffers great embarrassment. These are all negative effects and cause great unhappiness. On the other hand, the happiness of the board is increased because they can put a stop to more unethical activity. The second choice that Alistair has to consider is to keep silent and overlook the bribe. This would lead to the situation staying the same (as stated in the case study) and would secure the happiness of the greater good which include: the director, the relief organisation, the drivers and the people receiving the medicine. The board of directors would not know about the bribe, so there would be no unhappiness to consider. Considering the consequences of both actions, the happiness of the greater good is maximised when Alistair keeps silent.

Juvenile Crime Essay -- essays research papers

One of the biggest problems which the United States is faced with is juvenile crime. The reason experts feel juvenile’s commit crimes is because of risk factors when they were younger but experts still have not found the main reason why juvenile’s commit crimes. Some risk factors associated with juvenile crime are poverty, repeated exposure to violence, drugs, easy access to firearms, unstable family life and family violence, delinquent peer groups, and media violence. Especially the demise of family life, the effect of the media on the juveniles today, and the increase of firearms available today have played a big role in the increase of juveniles crimes.   Ã‚  Ã‚  Ã‚  Ã‚  The most common risk factor is the demise of the family life and the increase in family violence. Between 1976 and 1992 the number of juveniles living in poverty grew 42% and this caused an increase in crimes by juveniles. Many of these juvenile criminals have been abused or neglected and they also grew up in a single-parent household. Research has found that 53% of these children are more likely to be arrested, and 38% more likely to commit a violent crime as an adult, then their counterparts who did not suffer such abuse. The symptoms of child abuse are â€Å"high levels of aggression and antisocial behavior† and these children are twice as likely to become juvenile offenders. Also improper parental care has been linked to delinquency such as mothers who drink alcohol or take drugs during pregnan...

Culture and Love Essay

The concept of love is perhaps of the widely defined and yet loosely given that concrete meaning. This is due to the fact that there are many ways that people define what love is in as much as there are many ways that people can show love. One of the strongest influences on love is culture. The way we show love can depend on our culture so that how we reciprocate love is also dictated by culture. Indeed, love and culture has defined meaning to each other and have, in many ways certain connectivity that adds meaning to each other. This is the reason why, the culture of love in many countries differ from each other. There would always be distinct features of love and of culture that define love in these countries. For example, in an article by Nevitt entitled, â€Å"Art and Culture of Love in Seventeenth-Century Holland†, he defined how the culture of love was during the seventeenth century in Holland by examining texts and artworks that described how love was manifested during that time, including courtship and how love is manifested. The concept of courtship is perhaps one that differs from one culture to the other. This is true because as one culture believes in the concept and importance of courtship, others simply do not. Nevitt interpreted these works which according to him show â€Å"how they both reflect and shaped the experience of love†. The thing portrayed in the paintings for example, is taken in the â€Å"context of the contemporary culture of love which manifested itself in the social practices of courtship and in a variety of amatory texts† (Nevitt). These paintings are very significant as it would have no inspiration for its contents if there would be no true meaning to it as shown and seen in the community that shower each other with love. Work Cited Nevitt, Rodney. â€Å"Art and the Culture of Love in Seventeenth-Century Holland. † 24 June 2009 .

Indian Economic Scenario

GLOBSYN BUSINESS SCHOOL STUDY OF THE INDIAN AND CHINA ECONOMY PRESENTED BY: Learning Group 6 (PGPM-11B) – Vasundhara Kedia – Sourabh Soni – Sudeshna Chowdhary – Niloy Biswas – Sauryadipta Basu – Mandeep Pradhan ACKNOWLEDGMENT The time spent in the making of this project, as a part of our curriculum requirement of PGPM course, is invaluable in terms of learning. The application of concepts to the project added more depth and meaning to the knowledge gained in the classroom. We wish to extend our gratitude to our faculty guide Prof.S Chatterjee, for guiding us through the project with ample patience and understanding. We would also like to thank him for reminding us of the core objectives of the project every time we diverted from it. TABLE OF CONTENTS Abstract PAGE NO. 1. Introduction 4-6 THE INDIAN ECONOMY 2. Pre colonial, colonial and post-colonial India 7- 15 3. Indian Planning Commission & Liberalisation 16-20 4. India’s Economic Re forms and Currency Devaluation 21- 29 5.The Five Year Plans In India 30- 56 6. Fiscal Policy of India 57- 63 7. Monetary Policy of India 64- 65 8. Impact of Financial Crisis on Indian Economy 66-68 THE ECONOMY OF CHINA 9. Overview of the China Economy 69 10. Fiscal policy, Monetary policy, Inflation 70-73 11. Contrast between India and China’s Economy 74-80 ANNEXURE 1. INTRODUCTION Indian Economy Overview | | | | | |[pic] | | | | | |Indian economy is growing, despite the economic crisis that engulfed the world, stated Mr Anand Sharma, Union Minister for Commerce, | |Industry and Textiles, Government of India, while addressing a session at the 11thPravasi Bharatiya Divas 2013. Mr Sharma further | |highlighted that the national investment rate is around 33-34 per cent, and is expected to increase to 36 per cent by the end of | |12th  Five Year Plan (2012-17). |India has been adjourned the fifth best country in the world for dynamic growing businesses, as per the Grant Thorn ton Global Dynamism| |Index. The index gives a reflection of how suitable an environment the country offers for dynamic businesses. | |Indian tax climate was also considered to be reasonably favourable and India continued to be an attractive investment destination, | |according to a survey conducted by Deloitte Touche Tohmatsu Ltd (Deloitte). | |Moreover, India was ranked fourth on Ernst & Young's (E) renewable attractiveness index, second on the solar index, and third on the| |wind index, as per the latest  study  by E and UBM India Pvt Ltd. | | |The Economic Scenario | |India is expected to be the second largest manufacturing country in the next five years, followed by Brazil as the third ranked | |country, according to Deloitte. | |Some of the other important economic developments in the country are as follows: | |The HSBC's Services Purchasing Managers' Index (PMI) touched a 12 month high at 57. 5 points in January 2013 as compared to 55. 6 in | |December 2012 | |The net d irect tax collections in India rose by 13. 70 per cent to record Rs 368,322 crore (US$ 67. 6 billion) during April-December | |2012, as compared to Rs 323,956 crore (US$ 59. 77 billion) during the corresponding months in 2011 | |Indian companies have raised US$ 4. 29 billion, through external commercial borrowings (ECBs) and foreign currency convertible bonds | |(FCCBs) in October 2012, to fund modernisation, foreign acquisitions, import of capital goods and onward lending | |The total value of private equity (PE) and mergers & acquisitions (M) deals in November 2012 increased five-fold to US$ 10. 1 | |billion, as per a study by Grant Thornton India. The total value of PE deals in November 2012 rose to US$ 39 billion from US$ 0. | |billion in November 2011, indicating that PE players preferred concentrated exposure to their value investments | |The cumulative amount of foreign direct investments (FDI) equity inflows into India were worth US$ 187,804 million between April 2000 | |to December 2012, while FDI equity inflow during April 2012 to December 2012 was recorded as US$ 16,946 million, according to the | |latest data published by Department of Industrial Policy and Promotion (DIPP) | |Foreign institutional investors (FIIs) made a net investment of US$ 68. 46 million in the equity market and US$ 14. 2 million in the | |debt market upto February 18, 2013, according to data released by the Securities and Exchange Board of India (SEBI) | | | |Growth Potential Story | |The pharmaceutical market of India is expected to grow at a compound annual growth rate (CAGR) of 14-17 per cent over 2012-16 and is | |now ranked among the top five pharmaceutical emerging markets globally | |The ready-to-drink tea and coffee market in India is estimated to touch Rs 2,200 crore (US$ 405. 90 million) in next four years, | |according to estimates arrived at the World Tea and Coffee Expo 2013 | |India's IT and business process outsourcing (BPO) sector exports are expected to incr ease by 12-14 per cent in FY14 to touch US$ 84 | |billion – US$ 87 billion, as per National Association of Software and Services Companies (Nasscom) | |Indian manufacturing and natural resources industry plans to spend Rs 40,800 crore (US$ 7. 53 billion) on IT products and services in | |2013, a growth of 9. per cent over 2012, according to Gartner. The telecommunications category remains the biggest spending category | |and it is forecast to reach Rs 13,200 crore (US$ 2. 43 billion) in 2013 | |The semiconductor market is expected to grow from US$ 6. 03 billion in 2011 to US$ 9. 7 billion by 2015. In addition, the local demand | |and sourcing is estimated to record US$ 3. 6 billion by 2015 | |The electronic system design and manufacturing (ESDM) sector of India is projected to reach US$ 94. 2 billion by 2015 from US$ 64. | |billion in 2011, according to a report by the India Semiconductor Association (ISA) and Frost & Sullivan | |The luxury car market of India is set for gro wth over the medium and long term, according to Mr Philipp Von Sahr, President, BMW Group| |India. The market is about 30,000 cars a year and is rising steadily, Mr Sahr added | |The FM radio sector in India is expected to touch the Rs 2,300 crore (US$ 424. 35 million) mark within three years of the Phase III | |licences' roll-out, as per estimates by Confederation of Indian Industry (CII) and Ernst & Young.The sector is expected to reach Rs | |1,400 crore (US$ 258. 30 million) with 245 private FM stations during 2012-13 | |The US$ 12 billion Indian foundry industry has lined up investments worth Rs 600 crore (US$ 110. 70 million) over the next few years as| |it expands and adapts environment-friendly measures to garner global market share | |Indian infrastructure landscape would attract investments worth Rs 49,000 billion (US$ 904. 05 billion) during the 12th Five Year Plan | |period (2012-17), with at least 50 per cent funding from the private sector, as per Government's projec tions. | | |Road Ahead | |The Indian economy is estimated to grow at a higher rate of 6. 7 per cent in 2013-14 due to revival in consumption, according to a | |report by CRISIL. â€Å"India's GDP growth in 2013-14 will be supported by the revival of private sector consumption growth aided by higher| |growth in agriculture, high government spending and lower interest rates,† said Ms Roopa Kudva, Managing Director and CEO, CRISIL. | |†The Indian financial markets have witnessed favouritism among the investing diaspora compared to its Asian counterparts such as South| |Korea, Taiwan, Thailand and Indonesia,† according to a report by Mecklai Financial. | |Exchange Rate: INR 1 = 0. 1845 as on February 19, 2013 | | | |References:  Ministry of Finance, Press Information Bureau (PIB), Media Report, Department of Industrial Policy and Promotion (DIPP) | | | | | | | | | | | | | | | | | |Indian Economy before Colonial Period | | | |The earliest known evident civilizati on which flourished on the  Indian  soil was the  Indus Valley Civilization. Historians believed | |that this civilization would have flourished between the time frame of 2800 BC and 1800 BC.It is evident from the excavated cities | |and structures that the inhabitants of the Indus Valley practiced agriculture, domesticated animals and had developed trade | |relationships between different cities. They are also known to have developed a uniform system of weights and measures. Also, the | |inhabitants of Indus Valley were one amongst the very first of people to have developed a network of well planned cities with their | |application of urban planning. These planned cities were equipped with the world’s first urban sanitation systems. | |India  had been successful to develop international trade since as early as the first century BC.Historical evidences suggest that the| |Coromandel, the Malabar, the Saurashtra and the  Bengal  coasts were excessively used for the transportation of goods via sea roots from| |and towards  India. In the ancient times,  India  conducted international trade mainly with parts of Middle East, Southeast Asia, Europe | |and Africa. Overland international trade, conducted via Khyber Pass, was also prevalent in ancient  India. | |Later, in medieval times, the  Mughal Empire  gave way to a centrally administered uniform revenue policy and political stability | |in  India  which in turn lead to the further development of trade and unified the nation. During this era,  India  was primarily an | |agrarian self-sufficient  economy  which primarily depended on the primitive methods of agriculture.After the downfall of the Mughal | |Empire, the  economy of India  was primarily governed by the  Maratha Empire  which then ruled over most parts of  India. Later, the | |Maratha defeat in the third battle of Panipat disintegrated  India  into several Maratha confederate states which raised a w idespread | |political turmoil in the country. The  economy of India  turned highly disturbed in most parts of the country during this phase, but | |some areas gained a local prosperity too. Later, by the end of eighteenth century, the  British East India Company  was successful in | |being a part of the  Indian  political machinery, following which there was a drastic change in the country’s economic activities and | |the trade conducted from the  Indian  soil. | | | | | | | | | | | | |Indian Economy during Colonial Period | | | |During the reign of the  British East India Company, there was a drastic shift in the economic activities conducted across the country. | |More stress was laid on commercialization of agriculture. This led to a change in the agricultural pattern across the nation.During | |this phase of the  Indian economy, there was a constant decline in the production of food grains in the country which resulted to the | |mass impoverishment and destitution of farmers. Also, in a short span after this shift of pattern, there were numerous famines raised | |in the country. | |Though, after and during this phase, there was a sharp decline in the  economic  structure of the country, but this was also the phase | |during which some major and  economically  important developments took place. These developments include the establishment of railways, | |telegraphs, common law and adversarial legal system. Also, it was during this era that a civil service which essentially aimed to be | |free from the political interference was established. | | |Post-Colonialism: Definition, Development and Examples from India | | | |1. Post-colonialism in general | |1. 1 Definition | |Post-colonialism is an intellectual direction (sometimes also called an â€Å"era† or the â€Å"post-colonial theory†) that exists since around | |the middle of the 20th  century. It developed from and mainly refers to the time after col onialism. The post-colonial direction was | |created as colonial countries became independent.Nowadays, aspects of post-colonialism can be found not only in sciences concerning | |history, literature and politics, but also in approach to culture and identity of both the countries that were colonised and the | |former colonial powers. However, post-colonialism can take the colonial time as well as the time after colonialism into consideration. | |1. 2 Development | |The term â€Å"decolonisation† seems to be of particular importance while talking about post-colonialism. In this case it means an | |intellectual process that persistently transfers the independence of former-colonial countries into people’s minds.The basic  idea  of | |this process is the deconstruction of old-fashioned perceptions and attitudes of power and oppression that were adopted during the | |time of colonialism. | |First attempts to put this long-term policy of â€Å"decolonising the mindsâ⠂¬  into practice could be regarded in the Indian population after| |India became independent from the British Empire in 1947. | |However, post-colonialism has increasingly become an object of scientific examination since 1950 when Western intellectuals began to | |get interested in the â€Å"Third World countries†. In the seventies, this interest lead to an integration of discussions about | |post-colonialism in various study courses at American Universities. Nowadays it also plays a remarkable role at European Universities. |A major aspect of post-colonialism is the rather violent-like, unbuffered contact or clash of cultures as an inevitable result of | |former colonial times; the relationship of the colonial power to the (formerly) colonised country, its population and culture and vice| |versa seems extremely ambiguous and contradictory. | |This contradiction of two clashing cultures and the wide scale of problems resulting from it must be regarded as a major theme in | |post-colonialism: For centuries the colonial suppressor often had been forcing his civilised values on the natives. But when the | |native population finally gained independence, the colonial relicts were still omnipresent, deeply integrated in the natives’ minds | |and were supposed to be removed. | |So decolonisation is a process of change, destruction and, in the first place, an attempt to regain and lose power.While natives had | |to learn how to put independence into practice, colonial powers had to accept the loss of power over foreign countries. However, both | |sides have to deal with their past as suppressor and suppressed. | |This complicated relationship mainly developed from the Eurocentric perspective from which the former colonial powers saw themselves: | |Their colonial policy was often criticised as arrogant, ignorant, brutal and simply naive. Their final colonial failure and the total | |independence of the once suppressed made the process of decolonisation rather tense and emotional. | |Post-colonialism also deals with conflicts of identity and cultural belonging.Colonial powers came to foreign states and destroyed | |main parts of native tradition and culture; furthermore, they continuously replaced them with their own ones. This often lead to | |conflicts when countries became independent and suddenly faced the challenge of developing a new nationwide identity and | |self-confidence. | |As generations had lived under the power of colonial rulers, they had more or less adopted their Western tradition and culture. The | |challenge for these countries was to find an individual way of proceeding to call their own. They could not get rid of the Western way| |of life from one day to the other; they could not manage to create a completely new one either. | |On the other hand, former colonial powers had to change their self-assessment.This paradox identification process seems to be what | |decolonisation is all about, while post-colonialism is the intellectual direction that deals with it and maintains a steady analysis | |from both points of view. | |So how is this difficult process of decolonisation being done? By the power of language, even more than by the use of military | |violence. Language is the intellectual means by which post-colonial communication and reflection takes place. This is particularly | |important as most colonial powers tried to integrate their language, the major aspect of their civilised culture, in foreign | |societies. | |A lot of Indian books that can be attached to the era of post-colonialism, for instance, are written in English.The cross-border | |exchange of thoughts from both parties of the post-colonial conflict is supported by the use of a shared language. | |To give a conclusion of it all, one might say that post-colonialism is a vivid discussion about what happened with the colonial | |thinking at the end of the colonial era. What legacy arouse from this era? What social, cultural and economical consequences could be | |seen and are still visible today? In these contexts, one examines alternating experiences of suppression, resistance, gender, | |migration and so forth. While doing so, both the colonising and colonised side are taken into consideration and related to each other. |The main target of post-colonialism remains the same: To review and to deconstruct one-sided, worn-out attitudes in a lively | |discussion of colonisation. | | | |2. The post-colonial experience in India | |2. 1 History of Indian colonialism | |In the 16th  century, European powers began to conquer small outposts along the Indian coast. Portugal, the Netherlands and France | |ruled different regions in India before the â€Å"British East India Company† was founded in 1756. |The British colonialists managed to control most parts of India while ruling the key cities Calcutta, Madras and Bombay as the main | |British bases. However, there still remained a few independent reg ions (Kashmir among others) whose lords were loyal to the British | |Empire. | |In 1857, the first big rebellion took place in the north of India. The incident is also named â€Å"First war of Indian Independence†, the | |â€Å"Sepoy Rebellion† or the â€Å"Indian Mutiny†, depending on the individual perspective. This was the first time Indians rebelled in massive| |numbers against the presence and the rule of the British in South Asia. The rebellion failed and the British colonialists continued | |their rule. |In 1885, the â€Å"National Indian Congress† (popularly called â€Å"Congress†) was founded. It demanded that the Indians should have their | |proper legitimate share in the government. From then on, the Congress developed into the main body of opposition against British | |colonial rule. Besides, a Muslim anti-colonial organisation was founded in 1906, called the â€Å"Muslim League†. | |While most parts of the Indian population rema ined loyal to the British colonial power during the First World War, more and more | |Muslim people joined the Indian independence movement since they were angry about the division of the Ottoman Empire by the British. |The non-violent resistance against British colonial rule, mainly initiated and organised by Mahatma Gandhi and Jawaharlal Nehru, | |finally lead to independence in 1947. | |At the same time, the huge British colony was split into two nations: The secular Indian Union and the smaller Muslim state of | |Pakistan. The Muslim League had demanded for an independent Muslim state with a majority of Muslims. | |India became a member of the British Commonwealth after 1947. | | | |2. 2 Post-colonial development in India | |The Partition of India (also called the â€Å"Great Divide†) lead to huge movements and an ethnic conflict across the Indian-Pakistani | |border.While around 10 million Hindus und Sikhs were expelled from Pakistan, about 7 million Muslims crossed the border to from India| |to Pakistan. Hundreds of thousands of people died in this conflict. Ever since these incidents, there have been tensions between India| |and Pakistan which lead to different wars particularly in the Kashmir region. | |For decades the Congress Party ruled the democratic country which had become a republic with its own constitution in 1950. In 1977 the| |opposition gained the majority of votes. In 1984, after the Congress Party had regained the majority, conflicts with the cultural | |minority of the Sikhs lead to the assassination of the Indian prime minister Indira Ghandi. |Today, apart from the significant economic progress, India is still facing its old problems: Poverty, overpopulation, environmental | |pollution as well as ethnic and religious conflicts between Hindus and Muslims. Additionally, the Kashmir conflict has not come to an | |end yet, while both Pakistan and Indian are threatening each other with their arsenals of atomic weapons. | |Concerning p ost-colonial literature, Edward Said’s book â€Å"Orientalism† (published in 1978) is regarded as the beginning of | |post-colonial studies. In this book the author analyses how European states initiated colonialism as a result of what they called | |their own racial superiority. | |The religious-ethnic conflicts between different groups of people play an important role in the early years of post-colonialism. |Eye-witnesses from both sides of the Indian-Pakistani conflict wrote about their feelings and experience during genocide, being | |confronted to blind and irrational violence and hatred. The Partition is often described as an Indian trauma. | |One example for a post-colonial scriptwriter who wrote about this conflict is Saddat Hasan Manto (1912 – 1955). He was forced to leave| |Bombay and to settle in Lahore, Pakistan. He published a collection of stories and sketches (â€Å"Mottled Dawn†) that deal with this dark | |era of Indian history and its im mense social consequences and uncountable tragedies. | |Furthermore, there are many different approaches to the topic of intercultural exchange between the British and the Indian population. |Uncountable essays and novels deal with the ambiguous relationship between these two nations. One particularly interesting phenomenon | |is that authors from both sides try to write from different angles and perspectives and in that way to show empathy with their | |cultural counterpart. | |The most famous novelist who wrote about these social and cultural exchanges is Salman Rushdie. Rushdie, who won the booker prize | |among various others, was born in India, but studied in England and started writing books about India and the British in the early | |eighties. His funny, brave, metaphoric and sometimes even ironical way of writing offers a multi-perspective approach to the | |post-colonial complex.This can be also seen in his book â€Å"Midnight’s Children†. In the past, Salman Rushdie was also repeatedly | |threatened by Irani fundamentalists because of his critical writing about Muslim extremism in the Middle East. | |Another famous post-colonial novel is â€Å"Heat and Dust† (published in 1975) by Ruth Prawer Jhabvala that contains two plot set in | |different times: One about a British lady starting an affair with a local Indian prince in the 1920s, the other one set in the 1970s, | |featuring young Europeans on a â€Å"hippie trail† who claim they have left behind Western civilisation and are trying to some spiritual | |home among Indian gurus. |â€Å"Bollywood† has become a notorious synonym for the uprising Indian film industry in recent years. Young Indian scriptwriters have | |discovered post-colonial issues as themes for their movies and as a way of dealing with the changeful past of their country. | |Concerning the integration of Western values in the Indian population and culture, one can say that the British influence is s till | |omnipresent in the Asian subcontinent. The reason for this can be also found in the persistence of the English language. | |Many Indians are conversant with the English language, because the British colonialists intended to export their values and culture by| |teaching the Indian population their language.This was regarded as the basic fundament for further education. | |What about the relationship between India and the United Kingdom today? It is a special one, and of course still not without tensions | |between these two nations that refer to the time of colonialism which from our retro perspective is not at all so far away. | |India has managed to become an independent state with its own political system and is still working to find its own identity. The | |longer the process of decolonisation lasts, the more we get the impression that only a middle course between the acceptance of British| |legacies and the creation of a new unique Indian self-confidence will be the righ t way to go for India. | | | | | | | | | | | | | | | | | | |Indian Economy before Liberalization | | | |After independence, till 1991, the  economic policies of India  were primarily inspired by the Soviet  economic planning  under which a | |strong emphasis was laid on increasing the domestic self-sufficiency and reducing the reliance on imports. The  economic policies of | |India  during this phase were primarily protectionist and marked by excessive  economic  interventions and business regulations. Also, | |during this era the major concern of the government was to develop large and heavy public sector industries. |The  economic planning process  during this phase was mainly conducted centrally through the  Five Year Planning process  of the  Planning | |commission. This structure of  economic planning, through  Five Year Plans, was analogous to the  planning process  of the Soviet Union. | |Industries like mining, steel, machine tools, insur ance, telecommunications and power plants were effectively nationalized during this| |era. | |The Government of  India, under the leadership of  India’s first Prime Minister, Jawaharlal Nehru, along with statistician Prasanta | |Chandra Mahalanobis formulated an  economic policy  which laid a prime focus on the development of heavy industry in country by both the| |public and the private sector.However, despite all its efforts, the  economy of India  was unsuccessful to grow at pace with other | |Asian countries for the first three decades after independence. | |Later, in 1965, the advent of Green Revolution in country, triggered by the improved irrigation facilities, increased use of | |fertilizers and the introduction of high-yielding varieties of seeds improved the economic conditions of the country and enabled a | |better link between industry and agriculture in  India. | | | |The economic policies of the colonial rulers were at the centre of a controversy i n the late 19th century India.Whereas the colonial | |administration sought to project its policies as beneficial to the country, the nationalist writers and sympathetic British | |commentators attacked these policies as exploitative and oppressive. | |Dadabhai Naoroji, R. C. Dutt and William Digby were some of the famous critics of government policies. The economic history of India, | |as we know it, may be said to have begun during this period. D. R. Gadgil, Vera Anstey and D. H. Buchanan followed in their footsteps in| |taking up the economic history of the colonial period. Jaduanth Sarkar and W. H. Moreland wrote about the Mughal economy. | |In the post-independence period, economic history became an established field of study and several studies were undertaken on various | |periods of Indian history covering several aspects of economy.The emergence of economics as a discipline in the eighteenth century | |led in due course to the development of a new branch in history called e conomic history. | |The progenitors of economics were Adam Smith and other classical economists. India was very much in the vision of the classical | |economists, a group of thinkers in England during the Industrial Revolution. They advocated lays faire and minimizing of state | |intervention in the economy. Adam Smith, the foremost classical economist, condemned the East India Company in its new role as the | |ruling power in India. In his view, the Company's trading monopoly ran counter to the principle of the freedom of the market. |Economics underwent a theoretical transformation in the early twentieth century under the influence of John Maynard Keynes, who | |advocated strategic economic intervention by the government for promoting welfare and employment. Keynes, too, thought deeply about | |India while developing his new economic theories, and his earliest major  work. | |Indian Currency and Finance (London 1913), illustrated his notions of good monetary management of the ec onomy. It is also noteworthy | |that the early classical economists, such as Ricardo, influenced the thinking of a group of Utilitarian administrators who set about | |reforming the administration of India in the nineteenth century. | |Above all, the influence of Adam Smith is noticeable in the end of the Company's monopoly by the Charter Acts of 1813 and 1833.Not | |surprisingly, therefore, historians have paid close attention to the connection between the evolution of economic thought in England | |and the question of reform of the colonial administration in India. | |Classical political economy in England laid the foundations for the laissez faire economics of the Raj in the nineteenth century. | |Keynesian economics, on the other hand, contained the germs of the development economics of the mid-twentieth century both types of | |economics affected the state and the economy in India, and stimulated debates in the economic history of India. | |For the colonial period, R. C. Dutt's Economic History was followed by a series of works: D. R.Gadgil, The Industrial Evolution of | |India in Recent Times (1924); Vera Anstey, The Economic Development of India (1929); and D. H. Buchanan, and The Development of | |Capitalistic Enterprise in India (New York 1934). More recently, there has been a collective two-volume survey; Tapan Raychaudhuri and| |Irfan Habib (eds. ). | |The Cambridge Economic History of India, Vol 1, C. 1200 – C. 1750 (Cambridge 1982); and Dharma Kumar, The Cambridge Economic History of | |India, vol. 2 C. 1757 – C. 1970 (Cambridge, 1983). Daniel Houston Buchanan, an American author, was of the opinion that other worldly | |values and the caste system inhibited economic development in India. D. R.Gadgil, who updated his near classic work several times, | |emphasized, on the contrary, more strictly economic factors: the difficulties of capital mobilization on account of the absolute | |smallness of capital resources in respect to the siz e of the population, the late development of organized banking, and the seasonal | |fluctuations of a monsoon economy. | |A dispassionate economist, he did not blame either foreign rule or the Indian social structure for the absence of an industrial | |revolution in India; some of the Western contributors to the second volume of The Cambridge Economic History, on the other hand, | |showed a disposition to challenge R. C.Dutt's vision of the negative impact of colonialism, and they dwelt instead on the | |technological backwardness of the Indian economy. This, in their view, inhibited industrial development and capitalist enterprise | |during the colonial period. | | | THE INDIAN PLANNING COMMISSION HISTORY The Planning Commission was set up by a Resolution of the Government of India in March 1950 in pursuance of declared objectives of the Government to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing p roduction and offering opportunities to all for  employment  in the service of the community.The Planning Commission was charged with the responsibility of making assessment of all resources of the country, augmenting deficient resources, formulating plans for the most effective and balanced utilisation of resources and determining priorities. Jawaharlal Nehru was the first Chairman of the Planning Commission. The first Five-year Plan was launched in 1951 and two subsequent five-year plans were formulated till 1965, when there was a break because of the Indo-Pakistan Conflict. Two successive years of drought, devaluation of the currency, a general rise in prices and erosion of resources disrupted the planning process and after three Annual Plans between 1966 and 1969, the fourth Five-year plan was started in 1969.The Eighth Plan could not take off in 1990 due to the fast changing political situation at the Centre and the years 1990-91 and 1991-92 were treated as Annual Plans. Th e Eighth Plan was finally launched in 1992 after the initiation of structural adjustment policies. For the first eight Plans the emphasis was on a growing public sector with massive investments in basic and heavy industries, but since the launch of the Ninth Plan in 1997, the emphasis on the public sector has become less pronounced and the current thinking on planning in the country, in general, is that it should increasingly be of an indicative nature. FUNCTIONS The 1950 resolution setting up the Planning  Commission  outlined its functions as to: a.Make an assessment of the material, capital and human resources of the country, including technical personnel, and investigate the possibilities of augmenting such of these resources as are found to be deficient in relation to the nation’s requirement; b. Formulate a Plan for the most effective and balanced utilisation of country's resources; c. On a determination of priorities, define the stages in which the Plan should be c arried out and propose the allocation of resources for the due completion of each stage; d. Indicate the factors which are tending to retard economic development, and determine the conditions which, in view of the current social and political situation, should be established for the successful execution of the Plan; e.Determine the nature of the machinery which will be necessary for securing the successful implementation of each stage of the Plan in all its aspects; f. Appraise from time to time the progress achieved in the execution of each stage of the Plan and recommend the adjustments of policy and measures that such appraisal may show to be necessary; and g. Make such interim or ancillary recommendations as appear to it to be appropriate either for facilitating the discharge of the duties assigned to it, or on a consideration of prevailing economic conditions, current policies, measures and development programmes or on an examination of such specific problems as may be referred to it for advice by Central or State Governments. EVOLVING FUNCTIONSFrom a highly centralised planning system, the Indian economy is gradually moving towards indicative planning where Planning Commission concerns itself with the building of a long term strategic vision of the future and decide on priorities of  nation. It works out sectoral targets and provides promotional stimulus to the economy to grow in the desired direction. Planning Commission plays an integrative role in the development of a holistic approach to the policy formulation in critical areas of human and economic development. In the social sector, schemes which require coordination and synthesis like rural health, drinking water, rural energy needs, literacy and environment protection have yet to be subjected to coordinated policy formulation. It has led to multiplicity of agencies. An integrated approach can lead to better results at much lower costs.The emphasis of the Commission is on maximising the output by using our limited resources optimally. Instead of looking for mere increase in the plan outlays, the effort is to look for increases in the efficiency of utilisation of the allocations being made. With the emergence of severe constraints on available budgetary resources, the resource allocation system between the States and Ministries of the Central Government is under strain. This requires the Planning Commission to play a mediatory and facilitating role, keeping in view the best interest of all concerned. It has to ensure smooth management of the change and help in creating a culture of high productivity and efficiency in the Government.The key to efficient utilisation of resources lies in the creation of appropriate self-managed organisations at all levels. In this area, Planning Commission attempts to play a systems change role and provide consultancy within the Government for developing better systems. In order to spread the gains of experience more widely, Planning Commission    also plays an information dissemination role. India-Liberalization in the Early 1990s Growth since 1980 Increased borrowing from foreign sources in the late 1980s, which helped fuel economic growth, led to pressure on the balance of payments. The problem came to a head in August 1990 when Iraq invaded Kuwait, and the price of oil soon doubled.In addition, many Indian workers resident in Persian Gulf states either lost their jobs or returned home out of fear for their safety, thus reducing the flow of remittances (see Size and Composition of the Work Force, this ch. ). The direct economic impact of the Persian Gulf conflict was exacerbated by domestic social and political developments. In the early 1990s, there was violence over two domestic issues: the reservation of a proportion of public-sector jobs for members of Scheduled Castes (see Glossary) and the Hindu-Muslim conflict at Ayodhya (see Public Worship, ch. 3; Political Issues, ch. 8). The central government fell in Novemb er 1990 and was succeeded by a minority government. The cumulative impact of these events shook international confidence in India's economic viability, and the country found it increasingly difficult to borrow internationally.As a result, India made various agreements with the International Monetary Fund (IMF–see Glossary) and other organizations that included commitments to speed up liberalization (see United Nations, ch. 9). In the early 1990s, considerable progress was made in loosening government regulations, especially in the area of foreign trade. Many restrictions on private companies were lifted, and new areas were opened to private capital. However, India remains one of the world's most tightly regulated major economies. Many powerful vested interests, including private firms that have benefited from protectionism, labor unions, and much of the bureaucracy, oppose liberalization.There is also considerable concern that liberalization will reinforce class and regional economic disparities. The balance of payments crisis of 1990 and subsequent policy changes led to a temporary decline in the GDP growth rate, which fell from 6. 9 percent in FY 1989 to 4. 9 percent in FY 1990 to 1. 1 percent in FY 1991. In March 1995, the estimated growth rate for FY 1994 was 5. 3 percent. Inflation peaked at 17 percent in FY 1991, fell to 9. 5 percent in FY 1993, and then accelerated again, reaching 11 percent in late FY 1994. This increase was attributed to a sharp increase in prices and a shortfall in such critical sectors as sugar, cotton, and oilseeds.Many analysts agree that the poor suffer most from the increased inflation rate and reduced growth rate. Data as of September 1995 The rate of growth improved in the 1980s. From FY 1980 to FY 1989, the economy grew at an annual rate of 5. 5 percent, or 3. 3 percent on a per capita basis. Industry grew at an annual rate of 6. 6 percent and agriculture at a rate of 3. 6 percent. A high rate of investment was a major factor in improved economic growth. Investment went from about 19 percent of GDP in the early 1970s to nearly 25 percent in the early 1980s. India, however, required a higher rate of investment to attain comparable economic growth than did most other low-income developing countries, indicating a lower rate of return on investments.Part of the adverse Indian experience was explained by investment in large, long-gestating, capital-intensive projects, such as electric power, irrigation, and infrastructure. However, delayed completions, cost overruns, and under-use of capacity were contributing factors. Private savings financed most of India's investment, but by the mid-1980s further growth in private savings was difficult because they were already at quite a high level. As a result, during the late 1980s India relied increasingly on borrowing from foreign sources (see Aid, this ch. ). This trend led to a balance of payments crisis in 1990; in order to receive new loans, the government had no choice but to agree to further measures of economic liberalization.This commitment to economic reform was reaffirmed by the government that came to power in June 1991. India's primary sector, including agriculture, forestry, fishing, mining, and quarrying, accounted for 32. 8 percent of GDP in FY 1991 (see table 17, Appendix). The size of the agricultural sector and its vulnerability to the vagaries of the monsoon cause relatively large fluctuations in the sector's contribution to GDP from one year to another (see Crop Output, ch. 7). In FY 1991, the contribution to GDP of industry, including manufacturing, construction, and utilities, was 27. 4 percent; services, including trade, transportation, communications, real estate and finance, and public- and private-sector services, contributed 39. 8 percent.The steady increase in the proportion of services in the national economy reflects increased market-determined processes, such as the spread of rural banking, and government a ctivities, such as defense spending (see Agricultural Credit, ch. 7; Defense Spending, ch. 10). Despite a sometimes disappointing rate of growth, the Indian economy was transformed between 1947 and the early 1990s. The number of kilowatt-hours of electricity generated, for example, increased more than fiftyfold. Steel production rose from 1. 5 million tons a year to 14. 7 million tons a year. The country produced space satellites and nuclear-power plants, and its scientists and engineers produced an atomic explosive device (see Major Research Organizations, this ch. ; Space and Nuclear Programs, ch. 10).Life expectancy increased from twenty-seven years to fifty-nine years. Although the population increased by 485 million between 1951 and 1991, the availability of food grains per capita rose from 395 grams per day in FY 1950 to 466 grams in FY 1992 (see Structure and Dynamics, ch. 2). However, considerable dualism remains in the Indian economy. Officials and economists make an import ant distinction between the formal and informal sectors of the economy. The informal, or unorganized, economy is largely rural and encompasses farming, fishing, forestry, and cottage industries. It also includes petty vendors and some small-scale mechanized industry in both rural and urban areas.The bulk of the population is employed in the informal economy, which contributes more than 50 percent of GDP. The formal economy consists of large units in the modern sector for which statistical data are relatively good. The modern sector includes large-scale manufacturing and mining, major financial and commercial businesses, and such public-sector enterprises as railroads, telecommunications, utilities, and government itself. The greatest disappointment of economic development is the failure to reduce more substantially India's widespread poverty. Studies have suggested that income distribution changed little between independence and the early 1990s, although it is possible that the poor er half of the population improved its position slightly.Official estimates of the proportion of the population that lives below the poverty line tend to vary sharply from year to year because adverse economic conditions, especially rises in food prices, are capable of lowering the standard of living of many families who normally live just above the subsistence level. The Indian government's poverty line is based on an income sufficient to ensure access to minimum nutritional standards, and even most persons above the poverty line have low levels of consumption compared with much of the world. Estimates in the late 1970s put the number of people who lived in poverty at 300 million, or nearly 50 percent of the population at the time. Poverty was reduced during the 1980s, and in FY 1989 it was estimated that about 26 percent of the population, or 220 million people, lived below the poverty line. Slower economic growth and higher inflation in FY 1990 and FY 1991 reversed this trend.In FY 1991, it was estimated that 332 million people, or 38 percent of the population, lived below the poverty line. Farmers and other rural residents make up the large majority of India's poor. Some own very small amounts of land while others are field hands, seminomadic shepherds, or migrant workers. The urban poor include many construction workers and petty vendors. The bulk of the poor work, but low productivity and intermittent employment keep incomes low. Poverty is most prevalent in the states of Orissa, Bihar, Uttar Pradesh, and Madhya Pradesh, and least prevalent in Haryana, Punjab, Himachal Pradesh, and Jammu and Kashmir. By the early 1990s, economic changes led to the growth in the number of Indians with significant economic resources.About 10 million Indians are considered upper class, and roughly 300 million are part of the rapidly increasing middle class. Typical middle-class occupations include owning a small business or being a corporate executive, lawyer, physician, wh ite-collar worker, or land-owning farmer. In the 1980s, the growth of the middle class was reflected in the increased consumption of consumer durables, such as televisions, refrigerators, motorcycles, and automobiles. In the early 1990s, domestic and foreign businesses hoped to take advantage of India's economic liberalization to increase the range of consumer products offered to this market. Housing and the ancillary utilities of sewer and water systems lag considerably behind the population's needs.India's cities have large shantytowns built of scrap or readily available natural materials erected on whatever space is available, including sidewalks. Such dwellings lack piped water, sewerage, and electricity. The government has attempted to build housing facilities and utilities for urban development, but the efforts have fallen far short of demand. Administrative controls and other aspects of government policy have discouraged many private investors from constructing housing units. Liberalization in the Early 1990s Increased borrowing from foreign sources in the late 1980s, which helped fuel economic growth, led to pressure on the balance of payments. The problem came to a head in August 1990 when Iraq invaded Kuwait, and the price of oil soon doubled.In addition, many Indian workers resident in Persian Gulf states either lost their jobs or returned home out of fear for their safety, thus reducing the flow of remittances (see Size and Composition of the Work Force, this ch. ). The direct economic impact of the Persian Gulf conflict was exacerbated by domestic social and political developments. In the early 1990s, there was violence over two domestic issues: the reservation of a proportion of public-sector jobs for members of Scheduled Castes (see Glossary) and the Hindu-Muslim conflict at Ayodhya (see Public Worship, ch. 3; Political Issues, ch. 8). The central government fell in November 1990 and was succeeded by a minority government. The cumulative impact of these events shook international confidence in India's economic viability, and the country found it increasingly difficult to borrow internationally.As a result, India made various agreements with the International Monetary Fund (IMF–see Glossary) and other organizations that included commitments to speed up liberalization (see United Nations, ch. 9). In the early 1990s, considerable progress was made in loosening government regulations, especially in the area of foreign trade. Many restrictions on private companies were lifted, and new areas were opened to private capital. However, India remains one of the world's most tightly regulated major economies. Many powerful vested interests, including private firms that have benefited from protectionism, labor unions, and much of the bureaucracy, oppose liberalization. There is also considerable concern that liberalization will reinforce class and regional economic disparities.The balance of payments crisis of 1990 and subsequen t policy changes led to a temporary decline in the GDP growth rate, which fell from 6. 9 percent in FY 1989 to 4. 9 percent in FY 1990 to 1. 1 percent in FY 1991. In March 1995, the estimated growth rate for FY 1994 was 5. 3 percent. Inflation peaked at 17 percent in FY 1991, fell to 9. 5 percent in FY 1993, and then accelerated again, reaching 11 percent in late FY 1994. This increase was attributed to a sharp increase in prices and a shortfall in such critical sectors as sugar, cotton, and oilseeds. Many analysts agree that the poor suffer most from the increased inflation rate and reduced growth rateINDIA'S ECONOMIC REFORMS The reform process in India was initiated with the aim of accelerating the pace of economic growth and eradication of poverty. The process of economic liberalization in India can be traced back to the late 1970s. However, the reform process began in earnest only in July 1991. It was only in 1991 that the Government signaled a systemic shift to a more open econ omy with greater reliance upon market forces, a larger role for the private sector including foreign investment, and a restructuring of the role of Government. The reforms of the last decade and a half have gone a long way in freeing the domestic economy from the control regime.An important feature of India's reform programme is that it has emphasized gradualism and evolutionary transition rather than rapid restructuring or â€Å"shock therapy†. This approach was adopted since the reforms were introduced in June 1991 in the wake a balance of payments crisis that was certainly severe. However, it was not a prolonged crisis with a long period of non-performance. The economic reforms initiated in 1991 introduced far-reaching measures, which changed the working and machinery of the economy. These changes were pertinent to the following: †¢ Dominance of the public sector in the industrial activity †¢ Discretionary controls on industrial investment and capacity expansion †¢ Trade and exchange controls †¢ Limited access to foreign investment Public ownership and regulation of the financial sector The reforms have unlocked India's enormous growth potential and unleashed powerful entrepreneurial forces. Since 1991, successive governments, across political parties, have successfully carried forward the country's economic reform agenda. Reforms in Industrial Policy Industrial policy was restructured to a great extent and most of the central government industrial controls were dismantled. Massive deregulation of the industrial sector was done in order to bring in the element of competition and increase efficiency. Industrial licensing by the central government was almost abolished except for a few hazardous and environmentally sensitive industries.The list of industries reserved solely for the public sector — which used to cover 18 industries, including iron and steel, heavy plant and machinery, telecommunications and telecom equipment, m inerals, oil, mining, air transport services and electricity generation and distribution was drastically reduced to three: defense aircrafts and warships, atomic energy generation, and railway transport. Further, restrictions that existed on the import of foreign technology were withdrawn. Reforms in Trade Policy It was realized that the import substituting inward looking development policy was no longer suitable in the modern globalising world. Before the reforms, trade policy was characterized by high tariffs and pervasive import restrictions. Imports of manufactured consumer goods were completely banned. For capital goods, raw materials and intermediates, certain lists of goods were freely importable, but for most items where domestic substitutes were being produced, imports were only possible with import licenses.The criteria for issue of licenses were non-transparent, delays were endemic and corruption unavoidable. The economic reforms sought to phase out import licensing and a lso to reduce import duties. Import licensing was abolished relatively early for capital goods and intermediates which became freely importable in 1993, simultaneously with the switch to a flexible exchange rate regime. Quantitative restrictions on imports of manufactured consumer goods and agricultural products were finally removed on April 1, 2001, almost exactly ten years after the reforms began, and that in part because of a ruling by a World Trade Organization dispute panel on a complaint brought by the United States. Financial sector reformsFinancial sector reforms have long been regarded as an integral part of the overall policy reforms in India. India has recognized that these reforms are imperative for increasing the efficiency of resource mobilization and allocation in the real economy and for the overall macroeconomic stability. The reforms have been driven by a thrust towards liberalization and several initiatives such as liberalization in the interest rate and reserve r equirements have been taken on this front. At the same time, the government has emphasized on stronger regulation aimed at strengthening prudential norms, transparency and supervision to mitigate the prospects of systemic risks.Today the Indian financial structure is inherently strong, functionally diverse, efficient and globally competitive. During the last fifteen years, the Indian financial system has been incrementally deregulated and exposed to international financial markets along with the introduction of new instruments and products. Devaluation of the Rupee: Tale of Two Years, 1966 and 1991 Since its Independence in 1947, India has faced two major financial crises and two consequent devaluations of the rupee. These crises were in 1966 and 1991 and, as we plan to show in this paper, they had similar causes. Foreign exchange reserves are an extremely critical aspect of any country’s ability to engage in commerce with other countries.A large stock of foreign currency res erves facilitates trade with other nations and lowers transaction costs associated with international commerce. If a nation depletes its foreign currency reserves and finds that its own currency is not accepted abroad, the only option left to the country is to borrow from abroad. However, borrowing in foreign currency is built upon the obligation of the borrowing nation to pay back the loan in the lender’s own currency or in some other â€Å"hard† currency. If the debtor nation is not credit-worthy enough to borrow from a private bank or from an institution such as the IMF, then the nation has no way of paying for imports and a financial crisis accompanied by devaluation and capital flight results.The destabilising effects of a financial crisis are such that any country feels strong pressure from internal political forces to avoid the risk of such a crisis, even if the policies adopted come at large economic cost. To avert a financial crisis, a nation will typically ad opt policies to maintain a stable exchange rate to lessen exchange rate risk and increase international confidence and to safeguard its foreign currency (or gold) reserves. The restrictions that a country will put in place come in two forms: trade barriers and financial restrictions. Protectionist policies, particularly restrictions on imports of goods and services, belong to the former category and restrictions on the flow of financial assets or money across international borders are in the latter category.Furthermore, these restrictions on international economic activity are often accompanied by a policy of fixed or managed exchange rates. When the flow of goods, services, and financial capital is regulated tightly enough, the government or central bank becomes strong enough, at least in theory, to dictate the exchange rate. However, despite these policies, if the market for a nation’s currency is too weak to justify the given exchange rate, that nation will be forced to de value its currency. That is, the price the market is willing to pay for the currency is less than the price dictated by the government. The 1966 Devaluation As a developing economy, it is to be expected that India would import more than it exports.Despite government attempts to obtain a positive trade balance, India has had consistent balance of payments deficits since the 1950s. The 1966 devaluation was the result of the first major financial crisis the government faced. As in 1991, there was significant downward pressure on the value of the rupee from the international market and India was faced with depleting foreign reserves that necessitated devaluation. There is a general agreement among economists that by 1966, inflation had caused Indian prices to become much higher than world prices at the pre-devaluation exchange rate. When the exchange rate is fixed and a country experiences high inflation relative to other countries, that country’s goods become more expensive and foreign goods become cheaper.Therefore, inflation tends to increase imports and decrease exports. Since 1950, India ran continued trade deficits that increased in magnitude in the 1960s. Furthermore, the Government of India had a budget deficit problem and could not borrow money from abroad or from the private corporate sector, due to that sector’s negative savings rate. As a result, the government issued bonds to the RBI, which increased the money supply. In the long run,

Learning from the Fashion Industry Essay Example

Learning from the Fashion Industry Essay Example Learning from the Fashion Industry Essay Learning from the Fashion Industry Essay CRANFIELD UNIVERSITY ELEFTHERIA DIMITRAKOU LEARNING FROM THE FASHION INDUSTRY: A STRUCTURED LITERATURE REVIEW CRANFIELD CENTRE FOR LOGISTICS SUPPLY CHAIN MANAGEMENT MSc THESIS CRANFIELD UNIVERSITY CRANFIELD SCHOOL OF MANAGEMENT CRANFIELD CENTRE FOR LOGISTICS SUPPLY CHAIN MANAGEMENT MSc THESIS Academic Year 2006-2007 ELEFTHERIA DIMITRAKOU Learning from the Fashion Industry: A Structured Literature Review Supervisor: Dr. Chris Morgan August 2007 This thesis is submitted in partial fulfilment of the requirements for the degree of Master of Science  © Cranfield University 2006. All rights reserved. No part of this publication may be reproduced without the written permission of the copyright owner. ABSTRACT This research study is a Structured Literature Review focused on identifying the learning points which can derive from the fashion industry regarding supply chain management solutions. Manufacturing, distribution and marketing issues that enable a more robust analysis of the sector are investigated. A review of business models used by companies in the fashion industry is conducted to gain insights into the way that fashion firms manage demand. An extensive review of the literature reveals that the fashion industry is marketorientated and characterised by short life cycle products and low demand predictability. Lead time reduction enables the development of flexible manufacturing and logistics systems. Short lead times enable reduction of forecast errors and improvement of supply chain responsiveness towards volatile market conditions. The main supply chain solutions in the fashion industry are based on quick response, fast fashion, agile, lean and leagile concepts. Use of information technology, automated manufacturing systems, production and distribution planning based on real-time demand and transparency of information across the whole supply chain are some of the primary characteristics of the fashion supply chains. In the light of the unpredictable and volatile nature of the fashion industry, this is considered to be worth noting. Based on the segmentation of the industry in terms of volumes and varieties, a model presenting the structure of the sector and the different supply chain approaches is developed. The model allows a comprehensive analysis of the way that the fashion industry works, in terms of manufacturing, distribution and marketing operations, in different volumes/variety levels and product characteristics. i ACKNOWLEDGEMENTS First and foremost, I would like to express my gratitude to my supervisor, Dr. Chris Morgan, for his guidance and support. His willingness to discuss and advise benefited the completion of this study. I would also like to thank the members of the advisory group who contributed to this study. Especially, I would like to express my appreciation to Mr Sanaul Mallick, for his availability and contribution. I would also like to thank my friends at Cranfield University and in Greece for their support during this demanding year. Last but not least I would like to express my gratitude to my family for their everlasting trust and support. ii â€Å"True knowledge exists in knowing that you know nothing†. â€Å"And in knowing that you know nothing, that makes you the smartest of all. Socrates (469 BC 399 BC) iii TABLE OF CONTENTS CHAPTER 1 INTRODUCTION.. 1 1. 1 INTRODUCTION 1. 2 BACKGROUND TO THE RESEARCH .. 1 1. 2. 1 Background to the fashion industry 1 1. 3 IMPORTANCE OF THE TOPIC .. 3 1. 4 AIM OF THE PROJECT AND OBJECTIVES OF THE RESEARCH .. 4 1. 5 SCOPE OF THE PROJECT .. 4 1. 6 RESEARCH QUESTION .. 1. 7 METHODOLOGY OF THE RESEARCH .. 5 1. 8 STRUCTURE OF THE THESIS 6 CHAPTER 2 METHODOLOGY. 8 2. 1 INTRODUCTION 8 2. 2 DEFINITION OF STRUCTURED LITERATURE REVIEW (SLR) 8 2. 2. 1 Differences between Structured Literature review and Traditional Review. 9 2. . 2 Advantages of the Struc tured Literature Review 10 2. 3 STRUCTURED LITERATURE REVIEW PROCESS.. 10 2. 3. 1 Mapping the study field (Stage 1) .. 11 2. 3. 2 Developing the search strategy (Stage 2) 13 2. 3. 3 Assessment of the literature (Stage 3).. 20 2. 3. 4 Material Analysis (Stage 4) 2 2. 3. 5 Synthesis of the material (Stage 5). 22 CHAPTER 3 DESCRIPTIVE RESULTS. 23 3. 1 INTRODUCTION . 23 3. 2 CONTENT DESCRIPTIVE ANALYSIS ACADEMIC PAPERS .. 23 3. 3 HISTORICAL EVOLUTION OF THE IDEAS ACADEMIC PAPERS 25 3. 4 JOURNAL CLASSIFICATION- ACADEMIC PAPERS .. 28 3. AUTHORS’ CRITERION ACADEMIC PAPERS .. 30 3. 6 TYPE OF STUDIES- ACADEMIC PAPERS .. 31 3. 7 GEOGRAPHICAL ORIGIN ACADEMIC PAPERS .. 34 3. 8 OTHER PAPERS SOURCES NEWSPAPERS/TRADE PUBLICATIONS/REPORTS/WHITE . 35 3. 9 OTHER SOURCES- BOOKS. 36 iv 3. 0 OTHER SOURCES CASE STUDIES .. 37 CHAPTER 4 LITERATURE REVIEW: ANALYSIS OF THE FASHION INDUSTRY 39 4. 1 INTRODUCTION . 39 4. 2 FASHION DEFINITION . 40 4. 3 THE LEVELS OF THE FASHION INDUSTRY.. 0 4. 4 APPAREL CATEGORIES .. 42 4. 5 FASHION INDUSTRY CHARACTERISTICS 43 4. 6 FASHION TRENDS . 43 4. 7 FASHION INDUSTRY SUPPLY CHAIN . 45 4. 8 FASHION LEAD TIMES. 46 4. FASHION SUPPLY CHAIN APPROACHES . 47 4. 9. 1 Quick response (QR). 48 4. 9. 2 Fast fashion concept. 51 4. 9. 3 Lean supply chain.. 54 4. 9. 4 Agile supply chain approach 55 4. 9. De-coupling point approach . 58 4. 9. 6 Leagile supply chain approaches 59 4. 10 GLOBAL VS LOCAL SOURCING . 61 4. 11 MANUFACTURING IN THE FASHION INDUSTRY 63 4. 11. 1 Definition of fashion manufacturing. 63 4. 11. 2 Manufacturing types.. 3 4. 11. 3 Manufacturing operations .. 65 4. 11. 4 New manufacturing trends . 72 4. 12 DISTRIBUTION IN THE FASHION INDUSTRY .. 72 4. 12. 1 Distribution channels 73 4. 12. 2 Retail buying process . 73 4. 12. Retail logistics 75 4. 12. 4 Supply chain relationships.. 78 4. 13 MARKETING IN THE FASHION INDUSTRY .. 83 4. 13. 1 Definition of fashion marketing .. 83 4. 13. 2 Fashion marketing in practice.. 83 4. 13. 3 Fashion marketing rocess. 85 4. 13. 4 The role of consumer behaviour in marketing.. 89 4. 13. 5 Marketing communication.. 92 4. 14 SUMMARY . 93 CHAPTER 5 BUSINESS MODELS IN THE FASHION INDUSTRY 96 5. 1 INTRODUCTION . 6 v CASE STUDY 1 96 GUCCI’S AGILE SUPPLY CHAIN . 96 CASE STUDY 2 99 MARKS AND SPENCER’S REFINED SUPPLY CHAIN 99 CASE STUDY 3 . 03 ZARA’S FAST SUPPLY CHAIN 103 CASE STUDY 4 . 111 TESCO: THE GROWTH OF SUPERMARKET FASHION . 111 5. 2 COMPARATIVE ANALYSIS OF THE CASE STUDIES 115 5. 3 SUMMARY . 119 CHAPTER 6 DISCUSSION AND CONCLUSION.. 120 6. INTRODUCTION .. 120 6. 2 DEVELOPMENT OF THE MODEL .. 120 6. 4 DISCUSSION OF THE PROPOSED MODEL .. 123 6. 5 DISCUSSION OF THE RESULTS IN TERMS OF THE AIM OF THE SCOPE . 129 6. 6 CRITIQUE OF THE RESEARCH .. 134 6. 7 FURTHER RESEARCH 36 REFERENCES . 137 APPENDICES 148 vi LIST OF FIGURES Figure 1. 1: Thesis structure . 7 Figure 2. 1: SLR implementation process 11 Figure 2. 2: Field scope- main elements of the S LR 12 Figure 2. : Snowball search strategy 19 Figure 3. 1: Percentage of each content area. . 24 Figure 3. 2: Percentage of SCM/Logistics and marketing in the fashion industry. 25 Figure 3. 3: Percentage of SCM/Logistics and marketing in the apparel industry. 25 Figure 3. : Articles per year. 26 Figure 3. 5: Articles referring to apparel and fashion industry per year. 26 Figure 3. 6: The evolution of the fashion sector. .. 27 Figure 3. 7: The evolution of the apparel sector. .. 27 Figure 3. 8: Percentage of articles per Journal 29 Figure 3. 9: Authors who have written journal articles focused on the clothing/apparel industry and supply chain. . 31 Figure 3. 10: Theoretical/ Conceptual studies 32 Figure 3. 11: Theoretical/ Conceptual studies per year.. 32 Figure 3. 12: Analogy for studies per year for the fashion sector.. 33 Figure 3. 13: Analogy for studies per year for the apparel sector.. 33 Figure 3. 14: Types of empirical studies. . 34 Figure 3. 15: Percentage of articles per country. .. 5 Figure 4. 1: Route map of the chapter. .. 39 Figure 4. 2: The apparel supply chain 45 Figure 4. 3: Apparel business process. .. 46 Figure 4. 4: Generic supply chain strategies 48 Figure 4. 5: Cycle Time Compression through Quick Response 51 Figure 4. 6: Apparel supply chains.. 3 Figure 4. 7: The foundation for agility in a fashion business .. 56 Figure 4. 8: Approaches to agility in the supply chain 58 Figure 4. 9: De-coupling point locations.. 59 vii Figure 4. 10: Time compression methods in leagile supply chains .. 60 Figure 4. 11: Lead-time and forecast error relation. 62 Figure 4. 12: The fashion flow chart. . 6 Figure 4. 13: Production stage chart for the fashion supply chain. 67 Figure 4. 14: Sourcing types in the fashion industry 78 Figure 4. 15: Sourcing model for fast fashion. .. 81 Figure 4. 16: The fashion marketing process.. 85 Figure 4. 17: The marketing environment. .. 86 Figure 4. 18: Fashion internal market environment. 7 Figure 4. 19: Fashion ex ternal market environment. .. 88 Figure 4. 20: Fashion market environment strengths and weaknesses. .. 88 Figure 4. 21: A model of consumer behaviour .. 89 Figure 4. 22: Drivers of fashion change 90 Figure 4. 23: Maslow’s pyramid. . 91 Figure 4. 24: Brief summary of the literature results .. 5 Figure 5. 1: Business operations in the luxury sector . 98 Figure 5. 2: Gucci’s supply chain. .. 99 Figure 5. 4: Marks and Spencer revival.. 102 Figure 5. 5: Price-fashion brand positioning. .. 104 Figure 5. 6: Zara’s value chain. . 107 Figure 5. 7: Product pre-commitments: Zara vs Traditional Industry 108 Figure 5. 9: UK clothing specialists (Market positioning 2006). 111 Figure 5. 10: Non-food items bought from main supermarket in the last 12 months (January, 2007). .. 112 Figure 5. 11: Where consumers bought clothing from for themselves in the last 12 months (June 2006). 113 Figure 6. 2: Proposed fashion matrix .. 22 Figure 6. 3: Matching supply chains with products .. 128 viii LIST OF TABLES Table 2. 1: Differences between traditional and structured literature review. 9 Table 2. 2: Key words and search strings 13 Table 2. 3: No. of articles in each search string for ABI database 16 Table 2. 4: No. of articles in each search string for EBCO database. . 17 Table 2. 5: Relevant article results per database. . 21 Table 3. 1: No. f articles per Journal and star ranking. 28 Table 3. 2: Number of articles and year of publication per Journal. 30 Table: 3. 3: Number of articles per country 35 Table 3. 4: Other sources (newspapers etc. ) . 36 Table 3. 5: Book results. . 37 Ta ble 3. 6: Case studies results 38 Table 4. 1: UK fashion retail seasons. . 44 Table 4. 2: QR benefits 50 Table 4. 3: Differences between traditional and â€Å"fast fashion† retailing. . 54 Table 4. 4: Product characteristics for lean and agile supply chains 58 Table 4. 5: Agile manufacturing principals and benefits.. 71 Table 4. 6: Fashion supply chain relationships . 83 Table 4. 7: Two views of fashion marketing. 4 Table 4. 8: The fashion marketing concept. 85 Table 4. 9: Fashion industry levels 94 Table 4. 10: Product classification . 94 Table 5. 1: Marks and Spencer product ranges. . 103 Table 5. 2: Key differences between Zara and traditional retailer’s business model. . 110 Table 5. : Companies’ characteristics.. 116 Table appendix-A: No. of articles in each search string for Emerald database. 148 ix LIST OF APPENDICES Appendix A: Search Result of Databases .. 148 Appendix B: Questionnaire- Interview notes 149 Appendix C: Garment Production Process 152 x LIST OF ABBREVIATIONS CAD- Computer Assisted Design CAM- Computer Assisted Manufacturing CMI- Co-Managed Inventory DC- Distribution Centre EDI- Electronic Data Interchange EPO- Electronic Point of Sale IT- Information Technology JIT- Just-In-Time MRP- Material Requirements Planning NOS- Never-out-of-stock PDM- Product Data Management POS- Point of Sale QR- Quick Response RFID- Radio Frequency Identification SCM- Supply Chain Management SKU- Stock Keeping Unit SLR- Structured Literature Review SR- Systematic Review TQM- Total Quality Management UPC- Universal Product Code UPS- Unit Production System 3PL- Third Part Logistics xi Chapter 1 Introduction CHAPTER 1 INTRODUCTION 1. 1 Introduction The purpose of this chapter is to provide a prologue to the research. The background and the importance of the research are presented. The aim, the objectives are stated and the research questions are developed. Finally, the structure of the thesis and the scope are covered. 1. 2 Background to the research Recent business trends have been characterised by demand unpredictability, fast moving markets, expansion of product variety, short product life cycles, increased outsourcing, globalisation and explosion of information technology (Lee, 2002). Therefore, how to be successful in today’s rapidly changing environment is a key issue for many companies across different industries (Tang, 2005). According to Christopher (2005), today it is not companies that compete but supply chains. Supply chain management has been regarded as one of the main areas for companies to enhance competitive advantage (Lee, 2002). Consequently, companies have had to learn how to make critical decisions that would affect not only their present performance, but also their future success (Tang, 2005). 1. 2. Background to the fashion industry The fashion industry has faced many changes in terms of supply chain management during recent years. These changes emerged due to the characteristics of the market. In the past fashion retailing was dominated by several large retailers which increased the competition levels in the market (Barnes and Lea-Greenwood, 2006). 1 Chapter 1 Introduction During the 90’s, firms such as New Look and supermarkets s uch as Tesco, heavily influenced dominant fashion retailers’ markets and traditional market shares. Many retailers, in order to survive; moved production towards low wage, overseas countries. These countries offered cost efficiencies, and enabled these retailers to be focused on price competition. However, the overall result of this strategy has led to long lead times, and inflexible and complicated supply chains. This cost efficiency did not always ensure supply chain effectiveness due to the distance between the production and consumption points. Consequently, speed to market and quality levels were decreased (Bruce and Daly 2006; Barnes and Lea-Greenwood, 2006; Birtwistle et al. , 2003). The situation became worse due to the changes in the fashion market, such as consumers’ attitudes, lifestyles and the information explosion. The information explosion enabled consumers to be well informed of the trends around the globe and they became wiser about what they demanded. Entering the 21st century many firms such as Zara, recognising these changes, moved their focus from cost efficiencies to faster responsiveness to the trends and demand, and decrease of time to market performance (Hines, 2007b; Barnes and Lea-Greenwood, 2006). Nowadays, the fashion industry is characterised by aggressive competition levels. In the light of this high competition, fashion companies have to present not only price benefits for the consumer but also be focused on â€Å"newness† and constant â€Å"refreshing† of their product ranges (Hines 2007b; Hoffman, 2007; Barnes and Lea-Greenwood, 2006). Today’s retailers recognise that the customer is king. However, regarding the fashion sector, the customer is ever more fickle, impatient and fussy, and that leads to even more complications for the supply chain management. Michael Barrat, Retailer Researcher Director at AMR Research said that â€Å"information and trends are moving around the globe at speeds we have never seen before. As a result the consumer has more options and thus shops more often† (Hoffman, 2007, p. 1). Due to these challenges the supply chains in many cases have been reconstructed with the aim of serving the customer in a highly timely manner. 2 Chapter 1 Introduction 1. 3 Importance of the topic There are a number of factors behind the author’s decision to choose this topic as the thesis project. The decision was based on the fact that this sector presented interesting supply chains based on time dependence. Fashion markets have long attracted the interest of researchers. In terms of supply chain management there was a challenging sector which had been beset by the problems of volatility and demand unpredictability (Christopher and Peck, 1997). The fast pace of the fashion industry was a great challenge for companies involved in this sector. Across the seasons trends were changing. Thus the success or failure of a fashion company depended on effective purchasing decisions, inventory planning, manufacturing efficiency and product delivery. So in this case time urgent was fundamental. Those companies that assured product availability within days were regarded as the market winners (Worthington, 2006). In the fashion industry, pipelines have been notoriously long, inflexible and complex. Consequently, long buying cycles have been developed, resulting in inappropriate structures for the requirements of the modern fashion industry. Moves to improve supply chain responsiveness in the fashion industry have been made with the introduction of concepts such as quick response, Just-in-Time systems and agile philosophies (Bruce and Daly, 2007; Hines, 2007b). A review of business odels developed from companies such as Zara and Gucci and several others, has signalled that the fashion industry had successful supply chain solutions which were able to effectively meet consumer needs. Therefore, there were potential solutions and techniques that other industries might consider to improve the way in which they organised and managed their supply chain operations (Gutgeld and Beyer, 1995). 3 Chapter 1 Introduction 1. 4 Aim of the project and objectives of the research AIM: The aim of the research is to identify opportunities for other sectors to learn from the fashion industry. OBJECTIVES: The thesis has three objectives. Firstly, to review the literature on the theory and implementation of supply chain and marketing processes in order to identify the extent to which the fashion industry is able to create, anticipate and keep abreast of consumer demand. Secondly, to undertake case study reviews to identify the business models used by companies in the fashion industry, e. g. Zara and Gucci, that enable them to meet consumer needs. Finally, through analysis and synthesis to identify lessons that other industries can gain from such fashion retailers in how they organise and manage their supply chain operations. . 5 Scope of the project The fashion industry includes the design, manufacturing, marketing and sale of clothes, footwear and accessories. Nevertheless, in the literature or in the media, it is common when referring to the fashion industry to regard it as a clothing sector (Jackson, 2007). For that reason the focus of this research is on the garment ind ustry. Consequently, issues not related to the garment industry such as fibre, yarn and fabric manufacturing are excluded from the scope of the project. Whilst the research is primarily focused on fashion products, basic products that are not considered as fashionable are eviewed as well in order to develop a more comprehensive and holistic analysis of the total apparel product spectrum. The scope 4 Chapter 1 Introduction includes analysis of the fashion industry structure in general and the characteristics of several participants. Specifically, the analysis embraces common supply chain solutions in the industry such as quick response and agile approaches, as well as the type of relationships across the different actors in the pipeline. Referring to processes, a description of the manufacturing, distribution and marketing of fashion items is undertaken. Specific marketing issues are not included in the analysis. The scope of this project includes an evaluation of the theory through case study analysis. The purpose of this is to identify the ways that companies use in practice so as to meet demand. The case study review enables a comparative analysis across different investigated companies in terms of possible similarities and differences. Finally, the scope includes the development of a model which enables the author to crystallise the whole industry in terms of levels and products, and the related supply chain issues in each stage. 1. Research question Based on the objectives, the research question of the thesis is: â€Å"Why is the fashion industry able to provide lessons to other industries? † The fulfilment of this question is based on the answer of another question which is: â€Å"How do the several actors in the fashion industry organise and manage their supply chain operations? † 1. 7 Methodology of the research The logic of the research is based on a structured literature review. Descriptive analysis of the literature material is conducted along with critical review of the thematic contents of the literature findings, with he aim of discovering potential literature gaps. The literature review is based on academic papers and books. However, trade publications, 5 Chapter 1 Introduction newspapers and case studies are reviewed due to the nature of the topic. This enables the author to gain a more holistic and robust approach towards â€Å"real-world† issues. 1. 8 Structure of the thesis The thesis is structured as follows (Figure 1. 1) Chapter 1 The aim of this chapter is to develop an initial engagement with the reader of the broad field of the study and further focus on the research problem. The aim, the objectives and the scope of the project are outlined. Chapter 2 In this chapter the methodology adopted by the author in order to approach the research is outlined. A description of the implementation process is developed. Chapter 3 In this chapter, there is a descriptive analysis of the literature related to the fashion sector in terms of supply chain and marketing issues. The description particularly refers to the characteristics of the selected articles based on a set of criteria which are highlighted in chapter 3. Chapter 4 The content of this chapter is the review of the academic literature to gain insight into the fashion industry. This thematic section refers to the first objective of how the fashion industry works towards consumer demand. Chapter 5 In this chapter case study reviews are conducted. Identification of the business models used by companies in the fashion industry is developed. This thematic section aims to approach the second objective. 6 Chapter 1 Introduction Chapter 6 This chapter is divided in two sections. Firstly, it aims to consolidate the main findings in the literature review (from the two previous chapters) and develop a comprehensive model of how the fashion industry is structured and works. Secondly, it refers to the reflection of the overall work in order to define the main supply chain strategies and related tools adopted in the fashion industry and can be the base for providing lessons to other industries. Furthermore, it includes evaluation and review in terms of strengths and limitations of the research and proposes further future research. Figure 1. 1: Thesis structure Source: Author 7 Chapter 2 Methodology CHAPTER 2 METHODOLOGY 2. 1 Introduction The underlying thinking of the overall methodology strategy adopted in this project is to critically review the literature in the light of the three objectives of the thesis (See paragraph 1. 4). This chapter presents the methodology which has been chosen to meet the stated objectives. As the title declared, the thesis is a Structured Literature Review (SLR) by nature. In so doing, the definition of the SLR is presented along with its differentiation from a traditional literature review. Finally, the advantages of the SLR and the implementation process are demonstrated. . 2 Definition of structured literature review (SLR) The structured literature view is an evolution of the Systematic Review (SR). These two approaches present similar characteristics, but their differences are based on the implementation process. According to Morgan (2007, p. 2) the systematic literature review is more rigorous than the SLR. Maylor and Blackmon (2005, p. 98) de scribe the literature review as â€Å"a process of finding more about a research topic, in particular a theoretical problem it is the record of other people’s research†. According to Morgan (2007, p. ), â€Å"a (Structured) literature reviews are a method of making a sense of a large body of information, a †¦ method of mapping out areas of uncertainty†¦ and a way to tell the difference between real and assumed knowledge. They are methodologically sound (and lead to)†¦ results (that give) †¦. a good representation of the ‘truth’†. Denyer (2002, p. 14) states that SR is â€Å"a review of the evidence on a clearly formulated question that uses systematic and explicit methods to identify, select and critically appraise relevant primary research, and to extract and analyse data from the studies that are included in the rearview†. Finally, Boaz, Ashby and Young (2002, p. 2) define that the SR approach â€Å"acknowledges the large body of existing research and seeks to synthesize the findings from all relevant studies†. 8 Chapter 2 Methodology 2. 2. 1 Differences between Structured Literature review and Traditional Review The Systematic Literature Review (and consequently SLR mentioned before as an evolution of the systematic) is based on spotting the phenomena and is focused on a more â€Å"replicable, scientific and transparent process, ( , that aims to minimize bias through exhaustive searches of published and unpublished studies † (Cranfield Online, 2007). In comparison, in the traditional approaches of the literature review, the author included merely subjective information and thus irrelevant information, which did not fit in the research content, was excluded (Denyer, 2002). Regarding the traditional literature review, it was focused on a specific investigated area and did not provide detai led critical analysis to the degree that SLR did. The following table (2. 1) illustrates the major differences between these two areas. Structured Literature Reviews Scope of study Narrow Review question Organising the study Identifying studies Selecting studies Synthesising study results Clear, well-developed question/hypothesis Structured, clear process Rigorous and comprehensive search of published and unpublished information Pre-determined inclusion and exclusion criteria of studies Conclusion based on the most methodologically sound studies Traditional Reviews Wide General discussion, often without a developed question or hypothesis Unplanned/unfocused, permits creativity Searching is probing. Usually doesn t locate all the literature. Reasons for the inclusion and exclusion of studies may not be explicit No differentiation between methodologically sound and unsound studies Table 2. 1: Differences between traditional and structured literature review. Source: Nikolaidi, (2006). So the main difference between the structure literature review and the traditional approaches of literature review is the systematic approach of the SLR. Furthermore, traditional approaches have been deemed as solely descriptive without providing any new information, as well as lacking of any critical assessment (Tranfield et al. , 2003). 9 Chapter 2 Methodology 2. 2. Advantages of the Structured Literature Review The main advantages of the structured literature review are, firstly, that the evidencebased approach offers a scientific and objective quality to the research. Secondly, there is an effective way to draw together and analyse extensive literature, as well as, eliminate any bias and error issues (Tranfield et al. , 2003; Denyer, 2002 ). The author chose the structured literature review as a methodology approach due to the fact it enables the connection of the existing research information and the development of an overall view of the research area via a reliable and valid route. A further reason for selecting SLR, apart from the fact that it constitutes a resourceful technique, is that it enables the integration of all the research areas under investigation, such as the fashion industry, general apparel sector and supply chain management. 2. 3 Structured Literature Review Process In general the steps followed to develop a structured literature review are: 1. Scope the field 2. Develop the research strings 3. Determine the research areas 4. Review the results 5. Conclude the findings The following diagram (2. ) depicts the implementation process of the SLR through which the research is developed and the thesis is accomplished. The sequence of the stages is continuous and each phase is interdependent with the following one. 10 Chapter 2 Methodology Stage 1 Focus of the Investigation Stage 2 Search Strategy High level Stage 3 Assessment of the Literature Material Analysis Low level Stage 4 Stage 5 Material Synthesis Figure 2. 1: SLR implementation process Sourc e: Adapted from Morgan, (2007), Lecture notes. 2. 3. Mapping the study field (Stage 1) The main elements of the structured literature review are supply chain, logistics and fashion industry. These three elements were the starting point in the attempt to explore and comprehend the objectives and border the research scope. The fashion industry was reviewed in terms of supply chain management and logistics operations with the aim of identifying the way that the industry is structured and operated and the main value points that might provide lessons to other industries. 11 Chapter 2 Methodology Supply chain Fashion industry Logistics Figure 2. : Field scope- main elements of the SLR Source: Author. The first objective, which is related to the fashion industry and the way of managing customer’s demand, was covered by reviewing the literature area where the three cycles (figure 2. 2), fashion industry, supply chain and logistics overlap. However, apart from a holistic review of the supply chain, particular issues such as manufacturing, distribution and marketing of fashion items were assessed in detail. The second objective which was related to the identification of business models followed in the fashion industry was approached through case study analysis. A model development enabled the synthesis and the analysis of the fashion industry in a comprehensive way. At this point, worth noting was that the term fashion industry was used with a broad meaning, including the general apparel industry as well. Finally, the above described step was considered to be fundamental in identifying the domains that the research covered, spotting possible overlaps between them; developing the research questions and justifying the investigating approach (Morgan, 2007). 12 Chapter 2 Methodology 2. 3. Developing the search strategy (Stage 2) The aim of this phase is to identify all the relevant studies for the issues investigated and develop a set of arguments with the aim of elucidating the design of the research and giving reasons for decisions taken. Identification of the search strings The literature research started by identifying key words and by developing the search strings (Tranfield et al. , 2003). The searching terms were derived by conducting an initial literature review and by discussing these with the supervisor and the sponsor of the thesis. After identifying the key words, the search strings were developed. The following table (2. 2) presents the key words and the search strings. SLR elements Supply Chain Key words Supply chain Demand chain Value chain Fashion industry Apparel industry Fashion goods Fashion items Fashion industry Textile industry Garment industry Clothing industry Footwear Fashion retail Fashion business Logistics Logistics Manufacturing Distribution Marketing Logistics or manufactur* or distribut* or marketing Fashion or apparel or textil* or garment* or cloth* Supply chain or demand chain or value chain Search strings Table 2. 2: Key words and search strings Source: Author 13 Chapter 2 Methodology Identification of the databases The prime resources in order to conduct a structured literature review were the electronic databases. For the purpose of this research three databases were used: ABI/INFORM Trade and Industry (ProQuest) EBSCO Business Source Premier Emerald Library Journals The academic databases ABI/INFORM Global/Trade and Industry (ProQuest) and EBSCO Business Source Premier were regarded as providing the most relevant literature after conducting an initial search with simple keywords. Emerald Library journals offered a narrower range of results. More specifically, after cross checking, the author figured out that the majority of the articles found in this latter database were included in the two former academic databases. These two top potential sources have the following characteristics: ABI/INFORM Global (ProQuest) This included subjects related to management techniques, theory and practice of business, marketing and business and economic conditions. It provided about 2,770 Journal titles (Proquest Online, 2007). ABI/INFORM Trade and Industry (ProQuest) This covered about 1,210 serials in areas related to companies, trends and products (Proquest Online, 2007). EBSCO Business Source Premier This daily updated database included about 8,800 Journal titles with more than 1,100 peer reviewed publications and full-text articles from high quality marketing and management articles. The main fields that it covered among others are management and marketing (Ebscohost Online, 2007). The research of the publications was narrowed down by overviewing only peer reviewed titles in order to ensure a higher level of research credibility. Peer-reviewed 14 Chapter 2 Methodology publications referred to the fact that the articles are reviewed and approved by experts in similar topic areas (Proquest Online, 2007). Search Results The following two tables (2. 3 and 2. 4) illustrate the search results for titles of each database in relation to each search string. The tables refer to the two main academic databases ABI/INFORM Global/Trade and Industry (ProQuest) and EBSCO Business Source Premier. The relevant table for the Emerald database is cited in appendix-A. These tables aim to present all the likely combinations among the literature review elements and search strings by ensuring a higher possibility for appearing relevant to the investigated articles. â€Å"Refine† refers to the number of titles which were peer reviewed. The tables presented the potential articles from each database. However, the author, in order to proceed to the assessment of the literature which consisted of one of the following steps, decided to focus on one search string which was: (a) Supply chain (or) demand chain (or) value chain AND Fashion (or) textile* (or) garment* (or) apparel (or) cloth*. The reason for that decision was that the number of the resulting titles of this search string was manageable by allowing the search to remain broad but not out of scope. So there was no need to narrow it down further. Indeed, by including the additional search string of â€Å"Logistics (or) distribut* (or) manufact* (or) marketing† the resulting titles became even fewer (figures 2. 3 and 2. 4). However, in order to ensure that no valid information was missing these titles were reviewed in brief, during the literature assessment process, and it was discovered that the majority of them were included in the former (a) search string. 5 Chapter 2 Methodology Source: ABI database Supply chain (or) demand chain No. of articles in each search string Supply chain (or) demand chain (or) value chain Fashion Fashion (or) textile* (or) garment* (or) apparel (or) cloth* Logistics (or) distribut* (or) manufact* or marketing 39, 702 Refine: 6436 315 Refine: 71 54,005 Refine: 3,524 177,020 Re fine: 8140 1,291 Refine: 184 (or) value chain Fashion Fashion (or) textile* (or) garment* (or) apparel (or) cloth* Logistics (or) distribut* (or) manufact* or marketing 16,922 Refine: 2972 9,684 Refine: 953 34,616 Refine: 2227 1,164,875 Refine: 110,267 Three search strings together Supply chain (or) demand chain (or) value chain Fashion (or) textile* (or) garment* (or) apparel (or) cloth* Logistics (or) distribut* (or) manufact* or marketing (ABI) Total 719 articles Refine: 120 articles Table 2. 3: No. of articles in each search string for ABI database. Source: Author 16 Chapter 2 Methodology Source: EBSCO database No. f articles in each search string Supply chain (or) demand chain (or) value chain Fashion 30,526 Refine: 7,127 210 Refine: 84 33,458 Refine: 4,063 Fashion (or) textile* (or) garment* (or) apparel (or) cloth* Logistics (or) distribut* (or) manufact* or marketing 104,139 Refine: 9245 885 Refine: 179 Supply chain (or) demand chain (or) value chain Fashion Fashion (or) textile* (or) garment* (or) apparel (or) cloth* Logistics (or) distribut* (or) manufact* or marketing 18,918 Refine: 4, 988 10,920 Refine: 1,403 39,435 Refine: 3,555 ,774,721 Refine: 267,820 Three search strings together Supply chain (or) demand chain (or) value chain Fashion (or) textile* (or) garment* (or) apparel (or) cloth* Logistics (or) distribut* (or) manufact* or marketing (EBSCO) Total 543 articles Refine: 140 articles Table 2. 4: No. of articles in each search string for EBCO database. Source: Author Other sources Other non-academic sources, such as Google scholar and Mintel reports were investigated in order to approach the researching areas more effectively. Furthermore, due to the difficulty of finding enough sources related to the supermarket clothing departments and fashion marketing, these sources, along with books, provided further information. The additional sources that were used were: 17 Chapter 2 Methodology Google scholar Trade Publications (e. g. Traffic World) Newspapers (e. g. Financial Times) Mintel reports Case studies (e. g. Zara, and Marks and Spencer) Reference/ Reports (e. g. Just-Style) White papers (e. g. CFPIM Intentia Americas) Mintel offered efficient information for the clothing and supermarket sectors. Furthermore, books provided very useful information about the examined issues covering both theory and examples from the practice. The latter enabled the author to decide the case studies to be studied. Google scholar, apart from providing some efficient publications, facilitated a first overview of the issues investigated. Furthermore, it provided a good link to a college (London College of Fashion) which deals with the fashion industry. At this point, regarding the process of searching for relevant information about the issues investigated, apart from the development of the key words search, a â€Å"snowball search† was conducted. According to Maylor and Blackmon (2005), â€Å"snowball search† is the review of the reference and the bibliography list of a relevant article in order to discover any previous useful researches and information (figure 2. 3). 18 Chapter 2 Methodology Snowball search Original reference A References to A B C References to B D E F G Figure 2. 3: Snowball search strategy Source: Maylor and Blackmon, (2005). Case studies According to Yin (2003) the case study, as a method, enables researchers to preserve the holistic and meaningful attributes of real life events. These could include, among others, organisational and managerial processes. The primary aim of examining a case study was to identify the business models used in the fashion industry in terms of their supply chain management and the extent to which they enabled them to meet consumer requirements. As mentioned above, books provided information regarding case studies for some companies. Nevertheless, the majority of the case studies were found in the site of ECCH (European Case Clearing House) (ecch. com). Advisory groups The main advisors in the research were the supervisor and the sponsor of the research project. Furthermore, a formal presentation of the progress of the research was conducted on the 6th of June 2007. During this presentation useful recommendations were given by a panel of academics in terms of the issues investigated. Apart from the above mentioned advisors; the group included an academician (Sanaul Mallick, lecturer in corporative strategy) from the London College of Fashion, who contributed to the 19 Chapter 2 Methodology progress of the research by offering useful information and expertise. The interview was based on a semi-structured questionnaire, which was conducted on the 25th of July 2007 at the London College of Fashion. Finally, librarian staff provided assistance in terms of the source searching. 2. 3. 3 Assessment of the literature (Stage 3) In this stage, evaluation of the articles found in the electronic databases was conducted. For the purpose of this process, inclusion and exclusion criteria were developed. The latter was enabled by the initial search which was conducted in the first stages of the research as mentioned before. These pre-determined criteria which were slightly refined during the whole process enabled the avoidance of any bias and possible errors of judgment. According to Morgan (2007), this phase of the structure literature review is divided into two stages: â€Å"high level assessment of the literature† and â€Å"low level assessment of the literature†. High level assessment of the literature Firstly, the high level assessment of the literature review refers to an initial screening of each article’s title and abstract. In this point the inclusion criteria are: Empirical and theoretical studies. No time-frame restrictions. All the related sectors, for example in the broad meaning of apparel sector apart from fashion, basic clothing was taken into consideration as well. No strict geographical restrictions. Respectively, the exclusion criteria were: No relevance to the investigated area. Not written in the English language. The resulting numbers from this brief screening for each database are illustrated in the following table (2. 5): 20 Chapter 2 Methodology Databases ABI (Proquest) EBSCO Emerald Table 2. 5: Rele vant article results per database. Source: Author. No. of possible relevant articles for fashion industry 67 81 37 The above results were referred to the search string (a) and duplications were included. As mentioned before, from the 81 possible relevant articles founded in EBSCO only 49 articles were not included in ABI’s results, and the majority of the articles in Science direct and Emerald were found in the two former databases. As a result, the total relevant articles for the fashion industry which proceeded to low level literature assessment were around 115. Low level assessment of the literature Low level assessment of the literature is regarded as a more detailed and full text screening of the remaining possible relevant articles. In this stage the previous screening of the abstracts enabled the development of more restricted inclusion and exclusion criteria, closely related with the research scope. Inclusion criteria: Fashion industry background. Fashion industry related only to clothing. Supply chain strategies in both sectors and approaches such as Quick Response (QR) and agile. Related logistics operations in each sector including manufacturing, distribution and marketing. Geographical areas: UK, US, Australia; and generally developed countries. Exclusion criteria: Focus on corporate responsibility. 21 Chapter 2 Methodology Focus on related environmental issues. Geographical restrictions. Exclude countries such as India, Sri Lanka and Hong Kong. E-retailing related to internet sales For the fashion industry exclude fabric industry. The estimated final number from academic journals is 51 academic articles. Regarding other information sources the final number is 8 books, 11 case studies, 5 newspapers, 6 trade publications, 2 reference/ reports (including Mintel) and 1 white paper. 2. 3. Material Analysis (Stage 4) The material analysis included the presentation of the chosen articles in a descriptive way. The descriptive analysis referred to the categorisation of the articles in a number of comprehensive ways in order to present the overall analysis of the investigated issue. The descriptive findings are developed in Chapter 3. 2. 3. 5 Synthesis of the material (Stage 5) The approach of the first objective was based on ac ademic articles and books. However, newspapers, trade publications and white papers were used in order to approach the issue in a more robust way. Furthermore, the second objective, the assessing of business models followed in practice, was approached through case study review. Regarding the third objective, based on the literature and case study findings, a conceptual model was developed based on Hayes and Wheelwright (1979) model. The model presented the structure of the fashion industry and the way that the supply chains were organised and managed. This overall process enabled highlighting the learning points from the fashion industry in terms of supply chain strategies and tools. 22 Chapter 3 Descriptive Results CHAPTER 3 DESCRIPTIVE RESULTS . 1 Introduction The purpose of this chapter is to present a description of the finally selected articles. The descriptive analysis is regarded as findings and contributes to more robust overview of the further thematic analysis. The majority of the descriptive analysis is focalised on the academic papers (total 51 articles). However a brief presentation of the rest of the sources such as case studies and books is undertaken. 3. 2 Content descriptive analysis Academic papers A first review of the papers allowed a classification of the selected articles in terms of content. The four categories that the articles could be categorised into were fashion industry, apparel industry, supply chain management and logistics, and marketing. Supply chain management included manufacturing, suppliers, information issues, relationships and strategies. The following figure (3. 1) presents the percentages of each of these four categories in the total number of articles. Analysis of the fashion and apparel industries separately was conducted. Nevertheless, articles in which the title, the abstract and the keywords referred to apparel or clothing or textile, sometimes referred to fashion, as well. For that reason the classification regarding those two categories was based on the title, the abstract, the descriptors and the main points referred to in the article, reflecting in that way the focused area of each author. 23 Chapter 3 Descriptive Results 4% 29% 31% Fashion Apparel SCM/ Logistics Marketing 36% Figure 3. 1: Percentage of each content area. Source: Author Figures 3. 2 and 3. 3 present a further descriptive analysis of the fashion and apparel industry in terms of supply chain/ logistics and marketing. Regarding the two industries, the majority of the articles referred to supply chain and logistics. However, the percentages of the articles that referred to marketing were more in the fashion than in the apparel industry. But was there a reason for that? The market oriented nature of the fashion industry and the need for effective demand management, indicated that supply chain and marketing issues were both important. In so doing, marketing could be considered as an important factor to the success of a fashion firm; thus attracting the interest of researchers. However, the supply chain management seems to have been the area that has attracted the researchers’ interest more than marketing. This could be explained by the challenging nature of the industry in terms of manufacturing and general logistics issues. 24 Chapter 3 Descriptive Results 25% 75% Fashion SCM/ Logistics Fashion Marketing Figure 3. 2: Percentage of SCM/Logistics and marketing in the fashion industry. Source: Author 6% 94% Apparel SCM/ Logistics Apparel Marketing Figure 3. 3: Percentage of SCM/Logistics and marketing in the apparel industry. Source: Author 3. 3 Historical evolution of the ideas Academic papers In this section the characteristics of the selected articles were described based on chronological criteria. Figure 3. 4 presents the distribution of the articles both in number and percentage during the years. The majority of the selected articles were found after 2000, with more focused on 2006. Figure 3. 5 presents a comparison between the fashion and apparel sectors across the years. 25 Chapter 3 Descriptive Results 14 12 No. of Articles 10 8 6 4 2 0 1979 1989 1993 1994 1995 1996 1997 1999 Year No. of Articles Percentage 2000 2001 2002 2003 2004 2005 2006 25% 20% 15% 10% 5% 0% Figure 3. 4: Articles per year. Source: Author 00% 90% Percentage of Articles 80% 70% 60% 50% 40% 30% 20% 10% 0% 1989 1993 1995 1997 1999 2000 2001 2002 2003 2004 2005 2006 Years Apparel Industry Fashion Industry Figure 3. 5: Articles referring to apparel and fashion industry per year. Source: Author The following figure (3. 6) presents the distribution of the â€Å"fashion† articles per year. The evolution of the ideas during the years could be that in the 90s most of the articles were referring to general supply chain/logistics and marketing issues whilst in the beginning of the next decade concepts such as quick response and agility became more aggressive. Over the last years, i. e. towards 2005 and 2006, concepts of fast fashion, customer driven, customisation and demand management were deemed as more popular. 26 Chapter 3 Descriptive Results Fashion Industry 60% Percentage of aticles 50% 40% 30% 20% 10% 0% 1989 1993 1995 1997 1999 2000 2001 2002 2003 2004 2005 2006 Years Fashion Industry Figure 3. 6: The evolution of the fashion sector. Source: Author The following figure (3. 7) presents the apparel industry evolution during the years which could be characterised as more mature. Whilst the majority of the articles referring to fashion were found in 2006, the apparel sector presented a more â€Å"smooth† distribution both in number of publications and content. Quick response was always an area of focus. In the recent years, and a reflection on networks, the integration and explosion of technology use was found. Apparel Industry 30% Percentage of articles 25% 20% 15% 10% 5% 0% 1989 1993 1995 1997 1999 2000 2001 2002 2003 2004 2005 2006 Years Apparel Industry Figure 3. : The evolution of the apparel sector. Source: Author 27 Chapter 3 Descriptive Results 3. 4 Journal classification- Academic papers The following table (3. 1) and figure (3. 8) present the number and the percentage of selected articles in each journal. The ranking in terms of stars was given based on the â€Å"Academic Journal Quality Guide of The Association of Business Schools in 2007†. The majority of the articles, especially for the fashion industry, were derived from the  "Journal of Fashion Marketing and Management†. Journal Title Journal of Fashion Marketing and Management Journal of Enterprise Information Management International Journal of Operations and Production Management Business Strategy Review Supply Chain Management: an International Journal Industrial Management and Data Systems Management Science International Journal of Retail and Distribution Management Supply Chain Europe International Journal of Physical Distribution and Logistics Management International Journal of Agile Management Systems The McKinsey Quarterly International Journal of Clothing Science and Technology European Journal of Marketing California Management Review Competition and Change Harvard Business Review Industrial Relations Integrated Manufacturing Systems International Journal of Logistics: Research and Applications International Journal of Production Economics Journal of Marketing Management Technology in Society International Journal of Logistics Management The International Review of Retail, Distribution a nd Consumer Research Total No. of Articles 10 1 3 1 1 1 1 3 1 3 2 2 2 1 1 1 3 1 1 1 4 1 1 4 1 51 Ranking 1* * 3* 1* 3* 1* 4* 1* N/A 1* 1* N/A N/A 3* 3* 2* 4* 2* 2* 2* 3* 3* N/A 2* 2* Table 3. 1: No. of articles per Journal and star ranking. Source: Author 28 Chapter 3 Descriptive Results 8% 2% 2% 8% 2% 2% 2% 6% 2% 2% 2% 4% 2% 20% 2% 6% 2% 2% 2% 2% 6% 4% 4% 6% 2% Journal of Fashion Marketing and Management Journal of Enterprise Information Management International Journal of Operations and Production Management Business Strategy Review Supply Chain Management: an International Journal Industrial Management and Data Systems Management Science International Journal of Retail and Distribution Management Supply Chain Europe International Journal of Physical Distribution and Logistics Management International Journal of Agile Management Systems The McKinsey Quarterly International Journal of Clothing Science and Technology European Journal of Marketing California Management Review Competition and Change Harvard Business Review Industrial Relations Integrated Manufacturing Systems International Journal of Logistics: Research and Applications International Journal of Production Economics Journal of Marketing Management Technology in Society International Journal of Logistics Management The International Review of Retail, Distribution and Consumer Re search % of Articles per Journal Figure 3. 8: Percentage of articles per Journal. Source: Author The following table (3. 2) presents the journals in combination with the year of publication of each article. In the brackets are the numbers of the articles published each year for each specific journal. At this point it should be noted that there was no exclusion of papers that were a certain number of years old. The reason that most of the papers were published in 2006, especially in the â€Å"Journal of Fashion Marketing and Management† (where the majority of them were found), might be due to the end of the quota system in 2005; which encouraged even more the sourcing in low wage overseas countries such as China (McKee and Ross, 2005). So there might be an interesting investigated area from several authors on the fashion industry. 29 Chapter 3 Descriptive Results Journal Name Journal of Fashion Marketing and Management Journal of Enterprise Information Management International Journal of Operations and Production Management Business Strategy Review Supply Chain Management: an International Journal Industrial Management and Data Systems Management Science International Journal of Retail and Distribution Management Supply Chain Europe International Journal of Physical Distribution and Logistics Management International Journal of Agile Management Systems The McKinsey Quarterly International Journal of Clothing Science and Technology European Journal of Marketing California Management Review Competition and Change Harvard Business Review Industrial Relations Integrated Manufacturing Systems International J