Channels of Distribution and Logistics

Chapter 6 Channels of distribution and logistics LEARNING OBJECTIVES By the end of this chapter you will: n n n n omprehend key elements and decisions in distribution channel design be able to evaluate different configurations of channel structure be familiar with recent trends and developments in channels of distribution appreciate the importance of managing the physical flows of products, services and information into, through, and out of the organization to its customers n grasp the meaning and scope of physical distribution and logistics management n be aware of developments and trends in production and manufacturing, particularly the growth of ‘lean manufacturing’ and implications for logistics n recognize the role of Information Technology and marketing in logistics Channels of distribution and logistics 191 INTRODUCTIONThis chapter deals with the ‘place’ element of marketing strategy (i. e. ‘placement’ of goods and services from their res pective providers into the hands of customers). Before we discuss the structure of marketing channels, followed by logistics, it is useful that we look at their emergence and the functions that channels perform. THE CONSUMER WANTS CYCLE The word ‘channel’ has its origins in the word for canal, which for marketing can be interpreted as a route taken by products as they flow from production to points of intermediate and final use. Marketing is a key factor in a continuous cycle that begins and ends with consumer wants. It is the role of he marketer to interpret consumer wants and combine them with empirical market data such as location of consumers, their numbers and preferences, to establish the starting point for manufacture. On completion of manufacture, the finished product is moved to the consumer and the cycle is complete when he or she obtains satisfaction resulting from product ownership. THE PRODUCER–USER GAP Despite the growth of direct marketing (to be d iscussed in Chapter 10) in today’s complex economy, most producers still do not sell directly to final users. Between them and consumers lie marketing intermediaries. A distribution channel bridges the gap between user and producer, and so plays an integral role in the operation of the marketing concept. Relationships among channel members are influenced by the structure of the channel.Marketing channels can be described as sets of interdependent organizations involved in the process of making a product or service available for use or consumption. DEMAND STIMULUS In addition to marketing channels satisfying demand by supplying goods and services in the right location, at the correct quantity and price, they should stimulate demand through promotional activities of retailers, manufacturers and wholesalers. In this way, a marketing channel should be 192 Channels of distribution and logistics viewed not just as a demand satisfier, but as an orchestrated network that creates valu e for consumers through the generation of form, possession, time and place utilities.We start by examining ways in which distribution systems are designed and how channel policy is determined, depending on the degree of market exposure sought by a company. DISTRIBUTION SYSTEM DESIGN The starting point for marketing channel design is the end consumer. Although an understanding of consumer purchasing patterns is essential, there are other factors that influence channel organization: n n n n n There may be a restriction in choice of outlets available to suppliers, e. g. retail outlets may already have been secured by established manufacturers. Channel design will be influenced by the number, size and geographic concentration of consumers.If customers are few in number, but large and geographically concentrated, it may be that direct channels will be suitable. If customers are dispersed, the mechanics of direct channels become increasingly difficult and there will be a need for a large number of intermediaries. Product characteristics affect channel design. Industrial goods manufacturers tend to use direct channels, but there are other factors that influence the decision. Perishable goods, for example, need to be turned over quickly so direct methods are often applied. Non-perishable, non-bulky goods can be handled via indirect channels. Some products are more suited to indirect channels because of environmental characteristics.For example, in some countries shopping is seen very much as being a leisure activity especially for items like clothing and furniture, so much so that companies such as the Swedish company IKEA have made this a central part of their business model. Some organizations have limited discretion over marketing channel choice owing to economic conditions and legal restrictions. In certain of the Eastern European and Baltic countries such as Estonia, Latvia and Uzbekistan there is still restricted choice in terms of the range and scope of retail outlets for marketers. Any channel decision will have long-term implications for the company, e. g. price will be affected depending on the number of levels between the manufacturer and the end user.A decision to change channels is likely be long term so it is important that existing channel structures are constantly reviewed to exploit opportunities. STRATEGIC CHANNEL CHOICES An important consideration when formulating channel policy is the degree of market exposure sought by the company. Choices available include: Channels of distribution and logistics 193 n n n Intensive distribution where products are placed in as many outlets as possible. This is most common when customers purchase goods frequently, e. g. household goods such as detergents or toothpaste. Wide exposure gives customers many opportunities to buy and the image of the outlet is not important.The aim is to achieve maximum coverage. Selective distribution where products are placed in a more limited number of outlets i n defined geographic areas. Instead of widespread exposure, selective distribution seeks to show products in the most promising or profitable outlets, e. g. high-end ‘designer’ clothes. Exclusive distribution where products are placed in one outlet in a specific area. This brings about a stronger partnership between seller and re-seller and results in strong bonds of loyalty. Part of the agreement usually requires the dealer not to carry competing lines, and the result is a more aggressive selling effort by the distributor of the company’s products, e. g. n exclusive franchise to sell a vehicle brand in a specific geographical area, in return for which the franchisee agrees to supply an appropriate after sales service back-up. We can see that there are several key decisions to make when determining the company’s distribution system. Its importance is underlined by the fact that the choice of distribution channel has an effect on all elements of the marketi ng mix and these are long term. TYPES AND CLASSIFICATION OF CHANNELS Marketing channels can be characterized according to the number of channel levels. Each institution that works to bring the product to the point of consumption is included. The number of intermediaries involved in channel operation determines on how many levels it operates.There are four main types of channel level in consumer markets as shown in Figure 6. 1. The first three levels (zero, one and two) are self explanatory. The three level channel includes a ‘jobber’, or merchant Zero level channel manufacturer Consumer One level channel manufacturer Retailer Consumer Two level channel manufacturer Wholesaler Retailer Consumer Three level channel manufacturer FIGURE 6. 1 Wholesaler Jobber Retailer Consumer Channel relationships 194 Channels of distribution and logistics wholesaler who intervenes between the wholesaler and retailer. It is the jobber’s role to buy from wholesalers and sell to small er retailers, who are not usually serviced by larger wholesalers.Within each channel, intermediaries are connected by three types of flow: 1 Physical flow describes movement of goods from raw material that is processed in various stages of manufacture until it reaches the final consumer. In the case of a towel manufacturer raw material is cotton yarn which flows from the grower via transporters to the manufacturer’s warehouses and plants. Title flow is the passage of ownership from one channel institution to another; when manufacturing towels, title to raw materials passes from the supplier to the manufacturer. Ownership of finished towels passes from manufacturer to the wholesaler or retailer and then to the final consumer. Information flow involves the directed flow of influence from activities such as advertising, personal selling, sales promotion and publicity from one member to other members in the system.Manufacturers of towels direct promotion, and information flows to retailers or wholesalers, known as trade promotion. This type of activity may also be directed to end consumers, i. e. ‘end user’ promotion. 2 3 Conventional marketing channels comprise autonomous business units, each performing a defined set of marketing functions. Co-ordination among channel members is through the bargaining process. Membership of the channel is relatively easy, loyalty is low and this type of network tends to be unstable. Members rarely co-operate with each member working independently of others. Decision makers are more concerned with cost and investment relationships at a single stage of the marketing process and tend to be committed to established working practices.Most food grocery products in the European Union are marketed through conventional marketing channels; independent food and grocery producers are responsible for growing, rearing and manufacturing products and brands. These are sold through a series of wholesalers and retailers such as Sainsbury’s, Aldi, Lidl, Tesco or Carrefour each operating as independent businesses in the chain and selling to their own customers. Vertical marketing systems are in contrast to conventional channels where members co-ordinate activities between different levels of the channel to reach a desired target market. The essential feature is that participants acknowledge and desire interdependence, and view it as being in their best longterm interests.For the channel to function as a vertical marketing system, one of the member firms must be acknowledged as the leader; typically the dominant firm, which can be expected to take a significant risk position and usually has the greatest relative power within the channel. An example of a vertical marketing system is that of franchising. The franchiser, usually on the basis of having a powerful brand or perhaps a patent/copyright, for a fee, allows franchisees to produce or distribute the product or service. The franchiser effectively c ontrols the channel, including aspects such as product ingredients, advertising and marketing, pricing, etc. through formal and legally enforceable agreements. Franchising is an example of what are termed contractual vertical marketing systems which we consider again shortly.Corporate vertical marketing is when a company owns two or more traditional levels of the channel. In many economies corporate vertical channels have arisen as a result of a desire for growth on the part of companies through vertical integration. Two types of vertical integration are possible with respect Channels of distribution and logistics 195 to the direction within which the vertical integration moves a company in the supply chain: when a manufacturer buys, say, a retail chain, this is referred to as forward integration with respect to the chain. Backward integration is moving upstream in the supply chain, e. g. when a retailer invests in manufacturing or a manufacturer invests in a raw material source.Alt hough the end result of such movements is a corporate vertical marketing channel, often the stimulus to such movement is less to do with channel economies and efficiencies, and more with control over access to supply or demand, entry into a profitable business or overall scale and operating economies. Much vertical integration activity which took place during the 1990s in many economies resulted in lower overall profitability levels, and in some cases, the demise of companies involved, as companies overextended themselves and/or moved into areas where they had little expertise. Because of this, many companies have now turned their attention towards contractual systems for achieving growth and more control through the vertical marketing system.Many of the large oil companies are examples of corporate vertical marketing. They prospect for oil, extract it, process it, distribute and retail it through their petrol stations. Other companies operate partial corporate vertical marketing sy stems in that they integrate only one way. Zara (the clothing retailer) is integrated vertically backward with manufacturing facilities. Firestone (the tyre manufacturer) on the other hand, is vertically integrated forward owning its own tyre retailers. Many companies formalize their obligations within channel networks by employing legitimate power as a means of control achieved by using contractual agreements.Nearly all transactions between businesses are covered by some form of contract, and as such the contractual agreement determines the marketing roles of each party within the contract. Indeed, the locus of authority usually lies with individual members. The most common form of contractual agreement are franchises and voluntary and co-operative groups. Franchises are where the parent company grants an individual person or relatively small company the right or privilege to do business in a prescribed manner over a certain time period in a specified place. The parent company is r eferred to as the franchiser (or franchisor) and may occupy any position in the channel network. The franchise retailer is termed the franchisee.There are four basic types of franchise system: n n n n Manufacturer/retailer franchise, e. g. service stations where most of the garage petrol stations such as Shell and Esso are franchisees of the large oil exploration and refining companies. Manufacturer/wholesaler franchise: e. g. Coca-Cola sell drinks they manufacture to franchised wholesalers, who in turn bottle and distribute soft drinks to retailers. This type of arrangement is common in the food and drinks markets with many of the large companies franchising part of their manufacturing and or wholesaling activities to others. The wholesaler/retailer franchise. Many retail chains are franchisees of large wholesalers.These wholesalers saw the value of securing a measure of control, and of course a share of the retail profits, from marketing their products and brands. The most notable example is ‘Spar’ which advertises itself as ‘Spar, your 8. 00 till late shop’, and of course all retail members must abide by this promise. The service/sponsor retailer franchise e. g. McDonald’s, Kentucky Fried Chicken, Subway, Car Rental companies like Avis and Hertz and services like DynoRod and Prontaprint. This is the best known and certainly most ubiquitous of franchising arrangements and it has enabled many organizations to rapidly expand their global operations. 196 Channels of distribution and logistics There are different types of franchise arrangement, e. g.McDonald’s insists that franchisees purchase from official suppliers; they provide building and design specifications, help locate finance for franchisees and impose quality standards to which each unit must adhere in order to hold its franchise. Rigorous inspection through ‘secret shoppers’ (explained in Chapter 12) ensures franchise ‘rules’ are being obeyed. Franchises share a set of common features and operating procedures: 1 2 3 4 A franchise essentially sells a nationally, or internationally, recognized trade name, process, or business format to the franchisee. The franchiser normally offers expert advice e. g. location selection, capitalization, operation and marketing. Most franchises operate a central purchasing system at national or international level to enable cost savings to be made at the individual franchise level.The franchise is subject to a contract binding both parties that normally requires the franchisee to pay a franchise fee and royalty fees to the franchiser, but the franchisee owns the business as opposed to being employed. The franchiser often provides initial and continuous training to the franchisee. 5 Contractual vertical marketing systems like franchising have been one of the fastest growing areas of marketing and distribution. Substantial advantages derive from the franchising system. From a system t hat essentially involves two independent parties voluntarily agreeing to contract with each other, advantages accrue to both the franchisee and franchiser. Advantages to the franchisee are: n n n n n n The franchisee gains the benefit of being able to sell a well-known product or service which has been market tested and known to work.The franchisee enjoys access to the knowledge, experience, reputation and image of the franchiser. Because of this the franchisee is able to enter a business much more easily than setting up from scratch. The learning curve is shortened, expensive mistakes can be avoided, and there is less chance of business failure. Although the franchisee has the backing of what is often the large organization of the franchiser, the franchisee is still essentially an independent business with all that this implies for motivation to succeed. The franchisee is often helped by national or international advertising and promotion by the franchiser which would be beyond the means of a small independent business.The franchisee enjoys the use of the franchiser’s trademark, continuous research and development and market information. The franchiser will normally provide a system of management controls such as accountancy, sales and stock control procedures. Advantages to the franchiser are: n Finding and recruiting a network of franchisees enables rapid growth as wider distribution can be achieved with less capital. Channels of distribution and logistics 197 n n n n The individual franchisee is more motivated than a hired manager might be. The franchiser secures captive outlets for products or services, especially in the case of trade name franchising and private labels. Franchise and royalty fees provide a regular stream of income for the franchiser.The terms of the franchise contract normally give the franchiser substantial control over how the franchise is operated and normally the franchiser can terminate a contract should the relationship turn out to be unsatisfactory. The costs of such terminations are likely to be less than if the franchiser was operating a corporate owned facility with staff on the payroll. Normally, terms and restrictions on location and sale of the business by the franchisee ensure that the franchiser is able to maintain territorial exclusivity for its franchisees. There are disadvantages, but the franchise relationship combines the strengths of both small and large scale businesses. The franchisee is the small business person who is able to respond to local market conditions and offer personal services to customers.The franchiser passes on economies of scale in national advertising and bulk purchasing. For a franchise to be successful both parties need to work towards a common goal and avoid conflicts which requires frequent and open communication between partners if the system is to meet changing market conditions while maintaining its integrity. What constitutes the main disadvantages of franchis ing depends from whose perspective we are looking; the franchisee or the franchiser. The main disadvantages of franchising from each perspective are: Disadvantages to franchiser: n The franchiser loses some control over the provision and marketing of the brand. Poor service on the part of the franchisee can result in problems for brand image. Ideas and techniques can be copied even if seemingly well protected by patents and copyright arrangements. n Some proportion of profit has to be foregone. n There may be less commitment and enthusiasm from the franchisee. n Often franchisees lack business skills or experience. Disadvantages to the franchisee: n lack of support from franchiser; n franchiser may go out of business; n lack of flexibility/scope to use initiative; n close control from franchiser. Franchising is not solely confined to consumer products like fast food. It is used for a wide range of products and services in both consumer and industrial markets. Voluntary and co-operat ive groups emerged in the 1930s as a response to competition from chain stores.The scope of co-operative effort has expanded from concentrated buying power to the development of programmes involving centralized consumer advertising and promotion, store location and layout, financing, accounting and a package of support services. 198 Channels of distribution and logistics Generally, wholesale sponsored voluntary groups have been more effective competitors than retail sponsored co-operative groups. Primarily this is because of the difference in channel organization between the two. In the former, a wholesaler can provide strong leadership, because it represents the locus of power within the voluntary system and this is normally supported by a brand name like ‘Spar’.In the latter, power is diffused throughout the retail membership and role specification and allocation of resources are more difficult to accomplish. The principal purpose here is in bulk purchasing. In volunt ary groups, retail members have relinquished some of their autonomy by making themselves highly dependent on specific wholesalers for expertise. In retail co-operative chains, individuals retain more autonomy and this tends to depend much less strongly on the supply unit for assistance and direction. This type of organization is not to be confused with the Co-operative movement that was founded in 1844 by the Rochdale, Lancashire, Society of Equitable Pioneers who were a group of 28 weavers and other workers.As mechanization of the Industrial Revolution pushed more and more skilled workers into poverty, tradesmen banded together to open their own store selling items they could not otherwise afford. Over four months they pooled together ? 28 of capital. They opened their store with a basic selection of dry goods and foodstuffs and quickly moved into higher quality unadulterated produce. They devised the internationally famous Rochdale Principles: 1 2 3 4 5 6 7 open membership; democr atic control (one person, one vote); distribution of surplus in proportion to trade; payment of limited interest on capital; political and religious neutrality; cash trading (no credit); promotion of education.Administered vertical marketing systems (VMS) do not have the formal arrangements of a contractual system or the clarity of power dependence of a corporate system. It is a co-ordinated system of distribution channel organization in which the flow of products from the producer to the end user is controlled by the power and size of one member of the channel system rather than by common ownership or contractual ties. Member organizations acknowledge the existence of dependence and adhere to the leadership of the dominant firm, which may operate at any level in the channel. Large retail organizations like Marks & Spencer typify this system. In administered systems like Marks & Spencer, units can exist with disparate goals, but there is informal collaboration on inclusive goals.Dec ision making occurs by virtue of interaction between channel members in the absence of a formal inclusive structure. However, the locus of authority still remains with individual channel members. As in conventional channels commitment is selforiented and there is a minimum amount of system-wide orientation among the members. As McCammon1 observes: Manufacturing organizations . . . have historically relied on administrative expertise to coordinate reseller marketing efforts. Suppliers with dominant brands have predictably experienced the least difficulty in securing strong trade support, but many manufacturers with Channels of distribution and logistics 199 fringe’ items have been able to elicit reseller co-operation through the use of liberal distribution policies that take the form of attractive discounts, financial assistance, and various types of concessions that protect resellers from one or more of the risks of doing business. An example of a successful administered VMS in is that of the furniture/lifestyle retailer, IKEA who has developed close working relationships with its suppliers. Acting as the channel co-ordinator, IKEA is committed to cost-effective supply and their suppliers benefit from the channel leadership of an effective and marketing-oriented retailer. Administered VMS are one step removed from conventional marketing channels. In an administered system, co-ordination of marketing activities is achieved by the use of programmes developed by one or a limited number of firms.Successful administered systems are conventional channels in which the principles of effective inter-organizational management have been correctly applied. Before we discuss how such marketing channels are co-ordinated, it is important that we discuss their structure. STRUCTURE OF MARKETING CHANNELS The marketing channel has two basic aspects: 1 2 the placement of intermediary types of channel in relation to each other i. e. the order in which they occur; the number of different intermediary levels or stages in the channel i. e. how many different separate types of intermediary are involved, so types of intermediary and number of levels determine the structure of a marketing channel. There are several types of channel structure, dependent on the type of goods.An example of a structure for consumer goods such as food and clothing is shown in Figure 6. 2. This figure is based on three assumptions: 1 2 3 The channel consists of complete organizations. Manufacturers’ agents and selling agents are included with the merchants even though they do not take title to the goods. Physical movement follows exactly the movement of ownership. We must understand the underlying reasons for the emergence of channel structures. Four logical steps can be identified: 1 2 3 4 The efficiency of the process can be increased via an intermediary. Channel intermediaries arise to adjust the discrepancy of assortments through the performance of the sorting processe s.Marketing agencies remain together in channel arrangements to provide the routine of transactions. Channels exist to facilitate deliveries and to avoid inventory stock-outs. 200 Channels of distribution and logistics 1 M 2 M 3 M 4 M 5 M 6 M 7 M 8 M 9 M C W R A R W W A C W W C R W W W C C C R C R C R C R C M = Manufacturer W = Wholesaler A = Agent (sells for manufacturers) R = Retailer C = Consumer FIGURE 6. 2 A typical example of structure for consumer goods Rationale for intermediaries As numbers of transactions increase, the need for intermediaries becomes greater. The marketing channel is a ‘canal’ which contains the physical flow of products.Because of the complex array of intermediaries operating within a channel, which may be involved in one or all aspects of channel function, the channel may also be visualized as a chain-link arrangement where each intermediary unit is effectively a link. Manufacturers are dependent on the effectiveness of their intermediaries if their channels of distribution are to meet their marketing goals. Intermediaries of a channel specialize in more than one function. Their inclusion primarily depends on their superior efficiency in the performance of basic marketing tasks. Such intermediaries, through their experience, specialization, contacts and scale of operation, offer other channel members more than they can achieve on their own. However, this type of specialization leads to some important behavioural concepts. Position and role Each channel member chooses a position or location in the channel. Role’ refers to the functions and degree of performance expected of the firm filling a position. Channel intermediaries perform the distribution function at a lower unit cost than the manufacturer who is the intermediary most distanced from the consumer, and they balance the production efficiencies of the supplier to the purchasing needs of the customer. Another reason is to break down large volumes into smalle r quantities, termed ‘breaking bulk’, e. g. a furniture retailer places an order for 100 tables, but the individual buys only one. When we consider the selling process, the number of intermediaries can reduce the number of transactions Channels of distribution and logistics 201 ontained within the selling process. See Figure 6. 3. Figure 6. 3 shows that there are four manufacturers and ten retailers who buy goods from each manufacturer. Here the number of contact lines amounts to 40 (i. e. 4 10). If all four manufacturers sell to 10 retailers through one intermediary, the number of contacts is reduced to 14 (i. e. 4 10). The number of contacts increases as the number of intermediaries increases, e. g. when the number of wholesalers is increased to 2, contacts will increase from 14 to 28 (i. e. [4 2] [10 2]). Thus, greater numbers of intermediaries result in diminishing returns per contact. (a) Selling directly ManufacturersRetailers 40 contact lines (b) Selling through one wholesaler Manufacturers Wholesaler Retailers 14 contact lines (c) Selling through two wholesalers Manufacturers Wholesalers Retailers 28 contact lines FIGURE 6. 3 The economics of intermediary systems 202 Channels of distribution and logistics Assortment and sorting In addition to increasing the efficiency of transactions, intermediaries smooth the flow of goods and services by creating what economists refer to as ‘possession’, ‘place’ and ‘time’ utilities. This smoothing requires that intermediaries perform a sorting function to overcome the discrepancy that arises between goods produced by manufacturers and goods demanded by the consumer.In addition, intermediaries bring together a range of similar or related items into a large stock, thus facilitating the buying process. A supermarket will buy in thousands of lines to provide shoppers with choice, and a builders’ merchant will provide everything from sand and gravel to light fitt ings that the builder can use. In this way, intermediaries play an important role in facilitating the flow of products from the manufacturer to the consumer. Routine transactions The cost of distribution can be minimized if transactions are routinized. In effect, through routinization, a sequence of marketing agencies is able to hang together in a channel arrangement or structure.A good example is automatic ordering, whereby the cost of placing orders is reduced when retail inventory levels reach the necessary re-order point. Searching Buyers and sellers are often engaged in similar activities within the marketplace. There is a degree of uncertainty if manufacturers are unsure of customer wants and needs, and consumers are not always sure what they will find. In this respect, marketing channels facilitate the searching process in two ways: 1 2 Wholesale and retail institutions are organized by different product groups; for example, fashion, hardware, grocery. Many products are widel y available from wide ranging locations. FLOWS IN MARKETING CHANNELSWhen we discuss marketing flows, there will be times when the word ‘function’ could be used, but here we refer to marketing ‘flows’ in channels as a better method of describing movement. In this way, we can show that various intermediaries that make up a marketing channel are connected by several distinguishable types of flow, summarized in Figure 6. 4, which depicts eight universal flows. The figure shows that physical possession, ownership and promotion are typically forward flows from producer to consumer. Each of these moves is ‘down’ the channel; a manufacturer promotes the product to a wholesaler, who in turn promotes it to a retailer, and so on. Negotiation, financing and risking flows move in both directions, whereas ordering and payment are backward flows.Financing is the most important of these flows; at any one time, when stocks are being held by one member of the ch annel, financing is in operation. When a wholesaler takes ownership and physical Channels of distribution and logistics 203 Physical possession Ownership Promotion Producers Retailers Negotiation Financing Rising Ordering Payment Wholesalers Customers: household and industrial FIGURE 6. 4 Marketing flows in channels Woolly Thinking Under the auspices of the Confederation of British Wool Textiles (CBWT), groups of British wool textile manufacturers exchange information and ideas. The Confederation is organized into distinct groups in the industry with each group representing a particular stage in the manufacturing and processing of wool.For example, there is a group representing ‘Raw Fibre Producers’, another representing ‘Spinners’, another representing ‘Fabric Manufacturers’ and one representing the interests of ‘Dyers and Finishers’. possession of a portion of the output of a manufacturer, the wholesaler is essentially financing the manufacturer. This notion is apparent if the costs of stock are considered. Stock held in stores as dormant stock is ‘dead money’, but if this is freed via a wholesaler, this ‘dead money’ is available for reinvestment. The furniture industry exemplifies the flow. Traditional furniture retailers operating on a sold-order basis do not participate in the backward financing flow.However, ‘warehouse type’ furniture retailers participate in this flow directly, and receive benefits from manufacturers in the form of lower prices and preferential treatment. This backward flow of financing is not solely associated with stockholding, another example being prepayment for merchandise. The problem is that in the event of any downturn in sales the warehouse type retailer with large sums of money tied up in stock is very vulnerable to cash flow and liquidity problems. To underline this, blaming the downturn in the UK housing market in July 2009, the UKâ₠¬â„¢s second largest carpet retailer, Allied Carpets, called in the receiver. 204Channels of distribution and logistics Forward flow of financing is more common. All terms of sale, with the exception of cash on delivery and prepayment, may be viewed as elements of the forward flow of financing. In addition to these flows there is information flow. Typically, information regarding product attributes is passed ‘down’ the channel, often with the dominant channel member having greater influence on this function. Marketing information is passed ‘back’ up the channels. In addition, information flows horizontally, i. e. with intermediaries operating at the same level, such as fibre manufacturers, communicating for mutual benefit.CHANNEL CO-ORDINATION However well designed a marketing channel may be it is important that it is organized and coordinated, otherwise activities and flows will not operate effectively, and the full potential of the system will not be real ized. Emphasis should be placed on understanding behavioural dimensions of inter-organizational relationships, because through such understanding, the manager can organize, manipulate and exploit available resources. The long-term objective of channel management is to achieve, at a reasonable cost, the greatest possible impact at the end user level, so that individual members of the channel can obtain satisfactory returns (e. g. rofits, market share) as compensation for their specific contributions. The behaviour of intermediaries within any given structural arrangement should thus be directed towards achieving high yield performance. Once the marketing management of an organization isolates the market targets to attack, and the products and services which it must supply in order to satisfy needs and wants in those various segments, the question of how best to make products and services available for consumption arises. Figure 6. 5 identifies four major steps that represent the co-o rdination process. The first step is to determine the level of service outputs demanded by end users of the commercial channel system.Service outputs that are among the most significant in distribution are, for example, lot size. Some companies insist on a minimum order level. Under this limit they will not accept the order. In contrast, often smaller companies are unable or unwilling to supply orders over a certain size. A second type of service output is delivery or waiting time, or how long it takes from order to delivery. A third service output relates to market decentralization or spatial convenience, namely, to where the provider will deliver. For example, some suppliers will only deliver locally whereas at the other extreme some will undertake to deliver anywhere in the world. Finally, there is breadth and depth of product or service assortment.This refers to whether or not the provider is able to supply a full range of products and services or only a selected range, i. e. a ‘one -stop shopping’ facility. The second step involves identifying the marketing tasks that need to be carried out in order to achieve the service outputs, and which channel members have the capability to perform the tasks. Management must then determine whether, through the use of channel control strategies, they will be able to control the behaviour of existing channel members or be compelled to integrate channel flow vertically so the required service outputs are provided to end users. Channels of distribution and logistics 205 Step 1 Determine service output levels required by customersStep 2 Analyse the roles which channel members must perform to assure delivery of the required service outputs Step 3 Use economic and other power bases to motivate channel members to carry out their assigned roles Step 4 Devise mechanisms for dealing with conflicts that occur within the channel FIGURE 6. 5 Stages in the channel co-ordination process For example, if a desired level o f service output is that orders must be fulfilled within five working days then the channel and logistics system must be designed to reach this service level. If intermediaries in the channel are unwilling or unable to meet this service output then alternative channel arrangements must be found.Without effective channel management and control there is no guarantee that the desired service outcomes will be achieved, so a major issue in channel management relates to where, and to what extent, marketing flow participation should be assumed to generate the desired service outputs; e. g. if a car buyer needs finance, the manufacturer, the retailer or an outside intermediary should provide it, but lending services must be readily available if the consumer is going to feel comfortable in considering a specific purchase that requires finance. In a situation where no channel intermediary is willing to accept the risk of financing, the initial supplier may have to assume this, i. e. it would prefer to specialize in those flows that it can perform at a comparative advantage.The third step in the co-ordinative process is to determine which strategies should be used to achieve the desired results, irrespective of whether management decides to invest in integrating functions or whether it deals with independent companies. Essentially this is an issue of where and how ‘power’ is applied in the channel. Power is the ability to get somebody to do a task. In the context of a marketing channel it can be defined in terms of how one channel member can exert influence on another channel member. For example, due to their size and purchasing power, many retail multiples in the UK like Marks & Spencer are able to exercise substantial power over their suppliers.Power is the mechanism by which congruent and effective roles become specified, roles become realigned when necessary, and appropriate role performance is enforced. There are several bases of power, which include re ward, coercion and expertise. 206 Channels of distribution and logistics The fourth step involves setting up mechanisms to deal with conflict issues that may arise so that the channel will continue to provide the desired service outputs even if channel members disagree. Very often channel members perform unique roles. Thus, manufacturers specialize in production and national promotions, while retailers specialize in merchandising, distribution and promotion at a local level. This specialization means that channel members become reliant on each other to achieve objectives.There has to be co-operation between channel members, as without it, the task will not be completed. Such co-operation does not always come easy and needs to be cultivated. CHANNEL CONFLICT There is a danger that there will be conflicts of interest and distribution channels will exhibit levels of conflict. For example, suppliers may want to deliver weekly to a retailer, but the retailer wants to hold less stock, so may want daily deliveries. Ideally, channel members should attempt to coordinate their objectives, plans and activities with other intermediaries such that performance of the total distribution system to which they belong is enhanced.Evidence supports the view that such integrated activity throughout the length of the marketing channel is rare and channel participants are not too concerned with transactions that occur between each of the various channel links. Channel intermediaries are more concerned about dealings between channel members immediately adjacent to themselves, from whom they buy, and to whom they sell. Channel intermediaries do not function as component members of a distribution system, but operate independently, making decisions concerning their own methods of operation, functions performed and clients served as well as deciding their own objectives, policies and programmes.Therefore, a marketing channel should be a set of interlocking and mutually dependent elements and it is in the interests of all channel members for there to be a substantial degree of co-operation, but an almost inevitable feature is potential conflict between members which should be taken into account when making channel arrangements. It is possible that healthy competition can lead to conflict and management should seek ways to reduce this conflict. Conflict in distribution channels can occur in different forms as follows: 1 2 Horizontal conflict – is related to competition among similar types of intermediaries at the same level in the channel – e. g. two household textile stores in competition with each another.Intertype conflict – refers to competition among different types of intermediaries at the same level in the channel. This kind of competition has intensified since the advent of ‘scrambled merchandising’ by retailers (where retailers add new product lines that are unrelated to their normal lines of business) e. g. supermarkets hav e added homewares and clothing to their product lines, offering consumers a wider product range and attaining higher margins. Intertype conflict is significant as it reflects a way in which industries remain efficient and respond to changing market conditions. Vertical conflict – refers to competition among different levels in a channel.Such problems can be damaging to existing co-operative relationships e. g. in recent years some of the major car producers have been in conflict with their distributors over matters like pricing and discount policies, stockholding levels and exclusivity agreements. 3 Channels of distribution and logistics 207 Stress and conflict can be in a dormant state; times of change cause existing stress to peak, leading to hostility among channel members. Some conflict is inevitable in channels and may even be positive in that it can prompt needed changes. The earlier example regarding retailers selling manufacturers’ brands at lower prices than m anufacturers wish is an example of vertical conflict.Selling of brands like Levis and Calvin Klein at prices lower than those recommended by manufacturers has given rise to vertical conflict in the channel. Other examples of this type of conflict in the UK recently have been the selling of discounted books and discounted pharmaceutical products by the large retail supermarket groups. Goal incompatibility Channel members appear to share a common goal – maximizing the efficiency and effectiveness of the total system. However, each firm exists as a separate legal entity, each with its own employees, owners and other interested parties who help shape its goals and strategies. Some firms’ goals may be incompatible with the aims and objectives of other channel members.This incompatibility can be a primary cause of stress which will ultimately result in conflict. The distribution of channel profits is a typical example. Each institution will desire the highest possible profit for the whole channel and the natural tendency will be towards co-operation to achieve maximum profit levels. However, each individual firm can be expected to desire the largest obtainable share of total channel profits. The predictable result is conflict over the allocation process. Even if goals are compatible, there may be disagreements about methods employed: all channel members may agree that increases in volume of a product are desirable, but may disagree on the means employed to accomplish it.Wholesalers may desire more shelf space for better positioning of products in retail stores; retailers may feel that more advertising and promotional effort by the manufacturer would accomplish the objective of an increase in sales. The result is conflict over which method to use. Position, role and domain incongruence In a channel consisting of a manufacturer using only wholesalers who sell to retailers, there will be a realignment of the roles and domains of each party. By serving lar ge retailers direct, positions will be re-specified. Changes in position specification, or poorly defined positions, can precipitate conflict among channel members, so the manufacturer must anticipate and understand the expected behaviour of such members. In situations where consensus does not exist, conflict can be expected.Because each role represents a code of conduct defining the channel member’s expected contribution, adequate performance is critical to maintaining harmony within the channel system. Inadequate performance, or failure to behave in the prescribed manner, frustrates attempts by one firm to predict what the other will do and such frustration is a major cause of channel conflict. Conflict may also arise when there is lack of agreement concerning who is the channel leader (termed the ‘channel captain’). If channel members disagree on the domain of firms in the system, there will be conflict and an inability to achieve goals. If domains overlap, an d two or more firms lay claim to the same functions, products or customers, disagreement might lead to hostility.The conflict between car producers and their distributors just described, in part stems from the issue of 208 Channels of distribution and logistics who controls the channel. In the past it has been the car companies who have been channel captains but market and legislative changes have shifted the balance more towards distributors, giving rise to conflict. Communication breakdown Communication breakdowns may cause conflict in two ways: 1 The failure of one firm to pass on vital information to other channel members. A manufacturer wishing to maintain a competitive advantage may decide not to announce a new product until a national distribution programme has been developed.Retailers, on the other hand, need information about new products as soon as possible to prepare their own strategy for the introductory period. Distortion within the message process is called ‘noi se’ that often arises from confused language nuances. When channel members attach different meanings to language and terminology (e. g. if their roles are unclear and confused) stress results and there is potential for conflict. Speculation surrounding the health of Apple boss Steve Jobs caused problems for the company and its distributors. In January 2009 the annual MacWorld conference normally used to announce new products and developments was cancelled.This caused speculation in the trade about whether or not Jobs would continue. The problem was not so much Jobs’ illness bur rather the rumours about it. In July 2009 it was announced that Jobs was making a good recovery from a liver transplant. 2 Communication breakdowns are common in specialist business areas. Noise arises when functional specialists develop terminology that means little to those outside that business environment. Unclear communication with non-specialists can play a part in developing conflict so t he specialist should ensure that communications have been understood. Differing perceptions of reality Different solutions to mutual problems can lead to confliction behaviour.Even when channel members have a strong desire to co-operate and goal agreement exists, conflict can occur when perceptions of the real facts differ. Bare Bellies Update Dear all, further to my e-mail yesterday, I’ve had clarification that a new system for producing bare belly information will be in place. Please note there will no longer be blank bare belly sheets available in departments. Confused? So was this organization’s staff who received this e-mail. The e-mail was from the organization’s publicity department and was sent to all staff. ‘Bare bellies’ is a term used by printers to denote blank sheets to be printed on. The e-mail related to the production of company promotional material. Channels of distribution and logistics 209Each channel member brings to the relation ship different backgrounds and prejudices; facts are likely to be interpreted according to prior experience. All members may agree that the channel is not functioning as effectively as desired; each channel member may perceive a different reason for this lack of effectiveness. Manufacturers may feel that a retailer’s lack of stock is due to failure to maintain adequate safety stock levels and realistic reorder points. The retailer may feel that inventory policies are realistic and that the problem is caused by the manufacturer’s inability to meet scheduled delivery times. Each party is interpreting the situation based upon experience and natural prejudices associated with its own position and role. Ideological differencesSometimes there may be a fundamental ideological conflict in channels which stems from big business and small business perceptions of management, particularly concerning the appropriate level of sales effort. For example, a manufacturer may be so satis fied with the performance of a wholesaler in a given territory that pressure is exerted on the wholesaler to expand the line of products on offer, whereas the wholesaler may be satisfied with allowing the business to continue to run in its present form. In this way, pressures exerted by the manufacturer will lead to stress and conflict in the relationship. If this is an established channel, it is in the interests of everybody to settle the dispute or misunderstanding quickly.There are several methods of resolving conflict, and it is a task of management to seek ways in which to manage it to avoid it becoming dysfunctional and to harness the energies in conflict situations to produce solutions. Depending on which underlying cause is identified, different strategies can be employed in isolation. Another important factor in the resolution of the conflict will be the weight of power of the channel member seeking to resolve the conflict. Problem solving Adopting superordinate goals is a method that refers to goals that are desired by all members caught up in the conflict. Often such goals cannot be achieved by individual channel members, as concerted efforts of all parties are required.Such disputes become more pronounced when the channel is confronted by an external threat, and conflict only dissipates when alternative channel systems emerge. The threat to existing channel members of new channel arrangements for car retailing in the UK has brought about a reduction in conflict between traditional channel members. Car manufacturers and dealers were challenged by the fact that consumers were increasingly purchasing new cars through a variety of new channels including sourcing them from countries where prices might be lower, the growth of ‘car hypermarkets’ where cars are sourced on the ‘grey market’ and through the Internet.The result has been for existing traditional channel members to adopt superordinate goals and this has resulted in a r eduction of conflict between them in an effort to survive. Permanent conflict resolution requires an integration of the needs of both sides to the dispute so they find a common goal without sacrificing their basic economic and ethical principles. The problem is developing a common goal on which all parties agree. 210 Channels of distribution and logistics A solution exists to alleviate communications noise in distribution channels. A more efficient flow of information and communications in channels permits members to find solutions to their conflict based on common objectives. Channel communication efforts should be designed to decrease or avoid conflict, e. g. sing sales representatives to convey information from wholesalers or retailers implies that the manufacturer is trying to encourage the attainment of both individual and common goals; the function of the sales representative in such cases is that of ‘problem solver’. Persuasion This implies that institutions invo lved draw on their leadership potential. If effective channel management is to be achieved, it is often the case that there will be a need to locate an institution or an agency within the system that is willing to assume this role. Channel leadership is the intentional use of power to affect the behaviour of other channel members and cause them to act in a manner that contributes to the maintenance or achievement of a desired level of performance.Often channel control results from channel leadership and like channel power, the level of control achieved by one firm over others in a channel may be issue specific, e. g. while the manufacturer may have control over pricing, retailers may have control over stock levels. Whether or not control can be exerted depends on the power base of each channel member. By its nature, persuasion involves communication between conflicting parties. Emphasis is on influencing behaviour to resolve conflict; the primary intention is to avoid or reduce conf lict concerned with domain or sphere of influence. Persuasion allows members to reach a consensus resulting in agreement without formal bargaining. Some years ago a well-known company launched its own brand of cola. The new brand was eagerly tocked by many leading grocery supermarkets who were persuaded to make space for the new brand on their shelves. Inevitably this meant less shelf space for existing brands including some of the best known cola brands in the world. As if this loss of shelf space was not bad enough, the world’s leading cola brand claimed bitterly that at first glace the new Virgin cola looked remarkably like their own cola brand. They subsequently asked Virgin to withdraw the new brand in its present form and at the same time asked their supermarket customers not to stock it. Needless to say, there were protracted discussions, but after a little time all parties were persuaded to come to a compromise which avoided costly litigation and loss of face.The new cola was altered slightly in appearance, some of the lost shelf space was restored and the new brand gradually made inroads into the market. Bargaining/negotiations The difference between bargaining and persuasion is that in the bargaining process stress continues to exist in the system long after agreement is reached. In negotiation, no attempt is made to fully satisfy a channel member. Instead, the objective is to reach an ‘accommodation’ to stop conflict among members. Such a compromise may resolve the episode, but not necessarily the fundamental stress over which the conflict erupted. If stress continues, it is likely that some issue will cause conflict again at some later date. Compromise is a means by which bargains can be reached in the channel.Each party gives up something it desires to prevent or end conflict. Often compromise is necessary to reach domain consensus where persuasion and negotiation draw on abilities of parties involved to communicate. Channels o f distribution and logistics 211 Politics Politics refers to resolution of conflict involving new organizations in the agreement-reaching process. Mediation involves a third party, usually to secure settlement of a dispute by persuading the parties to continue negotiation or consider recommendations made by the mediator. Mediation involves understanding the conflicting views of parties in such a way that opportunities are perceived that otherwise may have been missed.The fact that solutions are being offered by a mediator, i. e. somebody external to the dispute, can often lead to a settlement if both parties deem the solutions acceptable. Effective mediation keeps the parties together and clarifies facts so the communication process does not break down. While mediation offers solutions to disputes, channel members are not obliged to accept the solutions. In arbitration, however, the solution suggested by the third party is binding upon the conflicting parties. Arbitration can be com pulsory or voluntary, and when it is the former, parties are required by law to submit their dispute to the third party and be bound by the decision.Voluntary arbitration is a similar process whereby parties are bound by the decision, but the dispute is settled voluntarily. The question of relying on law enforcement to settle disputes in distribution is imprecise as it is doubtful whether solutions enforced by law can be applicable to future channel disputes in different circumstances. In purely domestic channel management, these mechanisms are not greatly used because of the inability to find a neutral third party whose decision will be accepted by everybody involved in the dispute. However, arbitration is a normal and accepted part of international channel management and is part of the contractual agreement between the parties in channel activities.For example, if an exporter feels that an overseas agent has not fulfilled the terms of an agreement between him or herself and the pr incipal, but the two parties cannot agree as to the remedies for this, then normally the terms and conditions for instituting an arbitration process are written into the original contract and will be instituted to resolve the problem. Diplomacy Channel diplomacy is the normal method by which inter-organizational relations are conducted, adjusted and managed by ‘ambassadors’, envoys or other persons operating at the boundaries of member organizations. Normally channel members rely on diplomatic procedures, especially in nonintegrated systems. Channel diplomats should be the ‘eyes and ears’ of the firms they work for, and should report anything that may be of interest. Such ‘diplomats’ are commonplace in distribution channels at executive level.In this way, the diplomat’s power base is such that it is obvious to the parties with whom the diplomat will interact. Effective channel management strategies provide for more rational decision maki ng within the channel. THE DYNAMIC NATURE OF CHANNELS Marketing is characterized by constant change, and there is a need for the marketer to adapt to these changes, making marketing channels subject to change and innovation. Channels represent a 212 Channels of distribution and logistics dynamic area of marketing as they are constantly evolving to meet changing customer and market needs which reflect underpinning wider changes and trends in demography and lifestyles. Marketers must be aware of the changing nature of channels and respond to them.An example of recent developments that are indicative of the innovation and changing nature of this area is the growth of multi-channel systems of direct marketing and Internet marketing which are dealt with in Chapter 10. The growth of multi-channels Companies now use a variety of channel arrangements to reach their target customers. Once, companies tended to use only one type of channel configuration in their marketing; now they use several . The use of multi-channel systems can be for a number of reasons: n n n to increase market coverage by reaching new customers; to reduce costs of selling to certain customers where for example such customers require less service than that provided through the company’s normal channels; to achieve a more customized service to particular customers than would be available through the company’s normal channels.In multi-channel marketing, a company might sell to one group of customers using telephone selling and no intermediaries, while another target group may be marketed to through a network of dealers, since these customers require after-sales service and technical advice. Although there are advantages to be gained through using several different channel configurations to different target customers, multi-channels can give rise to increased costs if not controlled. They can also give rise to problems of conflict between different channel members where several channels a re used, particularly where one type of channel member feels that their contractual rights are being infringed. An example is where the marketer uses a system of ‘appointed’ distributors for the company’s products.In return for being granted ‘exclusive’ distribution rights in a particular g

Analysis of Oroonoko Essay

Oroonoko is a man who symbolizes honor and love. The nameless narrator is also a believer of Oroonoko’s stand. The narrator on the first part of the story talked of the place of Surinam as a very beautiful place. Behn tries to attract the reader to continue reading the story by giving the details of the place with all its plants and animals. The culture of the people is also a part of the first stage of the story. Oroonoko is the story of the African Prince named Oroonoko and of his love Imoinda. They were captives of the British’ they were brought to Surinam as slaves. The story is set in South America. The narrator became a friend of the Prince Oroonoko anh his love, Imoinda. The narrator wrote the account as Oroonoko gave his story. The British colonists did not use the natives to work on the plantations. They look for slaves to work on these, so they got slaves from Africa. The narrator after giving an account of the place, Surinam, the next location of the story is Coramantien, now known as Ghana, found in the western coast of Africa. Coramantien is the place where the Prince Oroonoko will meet his wife, Imoinda. The king who is a hundred years old is the grandfather of Oroonoko. The hardship of Oroonoko starts when his love, Imoinda is also the attraction of the king. The king falls for Imoinda. Being the king he sends the royal veil to Imoinda, that the beautiful girl cannot refuse. The royal veil signifies she is now the wife of the king. Imoinda now stays in the Otan or the royal seraglio, a place where only the king can visit. Aboan, a friend of the Prince helps him to go into the otan. Aboan keeps Onahal one of the senior wives who teaches the new wives how to make love to the king and how to deal with everything with regard to the king. Oroonoko is caught but he flees. Although Imoinda is sold to slavery, the king tells Oroonoko that Imoinda is honorably put to death. Oroonoko sells slaves who are captives from war. The British trade for slaves in Coramantien. The Captain of the vessel invites Oroonoko and friends to be the guests, as they ride their vessel. Little did Oroonoko know that he was now a slave. When they learned they were slaves, Oroonoko and friends refused to eat, the Captain promises them freedom upon the vessel’s arrival in Surinam, but when they reach the place, Oroonoko is sold to Mr.  Terfry. He is a very well-mannered man and a very intelligent overseer of the Parham Plantation. It is in this moment that the narrator meets the prince. Mr. Terfry befriends Oroonoko. Both Mr. Terfry and the narrator assured to Oroonoko they will be set-free upon the arrival of the lord-governor Willoughby in Surinam. Oroonoko is never sent to work. He resides away from the rest of the slaves, because of his social status, his education and good looks were taken into consideration. One day as Mr. Terfry and Oroonoko are walking, Oroonoko sees the love of his life, Imoinda. Oroonoko holding on to his promise not to fall in love to any other woman except Imoinda felt so happy when they saw each other. They embrace each other, got married later and Imoinda now pregnant. Due to Imoinda’s pregnancy Oroonoko is bothered that his child will be born a slave. Despite of the promises of Mr. Terfry and the narrator that everything will be fine when the lord-governor arrives in Surinam. They diverted Oroonoko’s attention by letting hi go to fish, hunt and visit the other natives in the nearby villages. Together with the other natives Oroonoko stage a revolt on a Sunday as the white were drunk. The group of Oroonoko was easily traced as the group left a trail. Oroonoko’s group wanted to go back to Africa once they find a ship, but they planned to settle near the shore while they were looking for a ship. The narrator still gets an account of the event despite of fleeing. Byam, the deputy-governor talked to Oroonoko to surrender and promised him amnesty. The deputy-governor lied as Oroonoko was brutally-whipped when he surrenders. His wounds were powdered with pepper. Oroonoko now feels, he will never be a freeman together with his family. Oroonoko tells Imoinda of his plan to kill her and revenge against Byam and will kill himself. Imoinda thanks his husband of her honorable death. Oroonoko cuts the throat of Imoinda. Finally Imoinda dies. Oroonoko had no strength after the death of Imoinda. He was so depressed to stand and take revenge to Byam. The stench of the dead body of Imoinda brings Byam’s men to the site. Byam’s men now set out to kill him. Oroonoko stood his ground. He was killed standing stoically, smoking his pipe as the killers chopped him to death. The story tells of a very brave man, a man of valor despite of his color and race. Oroonoko is a man of dignity and honor. He never broke a promise especially with regards to his heart. Nowadays, a man like Oroonoko is hard to find. The writer wanted to impart to her readers that Oroonoko will be the symbol of a man of valor and honor. He stood his love till the last drop of his love. Every woman wants to have Oroonoko for her love. Oroonoko not only held on to his love but also stood for his people. The many readers of this story feel that the writer was a racist by heart, but for me she only used this as a facade to the story to make you feel pity for the oppressed. That the Africans despite of their race and color they still hold-on to their values. The story was made in the 17th century but up to this time you could still feel the oppression belonging to the lower class. Oroonoko wants us to be aware of our principles and values. We as good citizens of our countries should not be corrupted by anybody. Oroonoko had been betrayed so many times almost by all the characters but still he held on. He was also betrayed by Imoinda when she chose the old king instead of Oroonoko. Oroonoko was called Caesar by the whites, maybe because of his gallant stand during war. Although he was treated not a free man they still called him Caesar. He was called Caesar but was not free to do what he wanted. Despite off all the misdeeds of the whites, Oroonoko still respected the colonists and he also respected the slaves. Due to his greatness in battle, the whites were also scared when Oroonoko staged a revolt together with the other natives. Oroonoko is disappointed that there is no justice and honor for slaves in the west. The writer described Oroonoko’s group as very noble. They were slaves but the narrator did not do anything to help them. During the event of the escape of Oroonoko and the natives the narrator also fled. The narrator left them behind. This could have been the best time to help them. Also Byam promised amnesty but Oroonoko was tortured upon his surrender. The narrator coul have negotiated for Oroonoko and the slaves. The narrator used â€Å"we† to be a member of the slaves but she was not able to do anything to help them. She fled in time when Oroonoko and the natives tried to escape from captivity. The writer wanted to let the readers give value to the qualities that Oroonoko had. This time many do not give value to honor, love and promises. They keep a vow now soon to be forgotten. Despite of the racial discrimination, Oroonoko did not give in to what the colonists wanted, he stood his ground bravely. Especially for his love Imoinda. Imoinda was wife to the king still Oroonoko married her and loved her till death. If Oroonoko could only be alive now, he would still be so in love with Imoinda. Oroonoko would be the man of his generation and even still be the man of this generation. References http://fiction.eserver.org/novels/oroonoko/ http://www.english.ucsb.edu/faculty/warner/courses/w00/engl30/Oroon1.html http://www.gradesaver.com/classicnotes/titles/oroonoko/shortsumm.html http://www.wmich.edu/dialogues/texts/oroonoko.html

Role and Function of Law

The Role and Function of Law James Williams Law/421 January 7, 2012 Gail B. Jabber Role and Functions of Law According to Melvin (2011), â€Å"A generally accepted generic definition of the law is a body of rules of action or conduct prescribed by controlling authority, and having legal binding force† (p. 4). The scope of modern law is broad with tentacles that reach into every area of public and private dealings. Essentially law furnishes a process by which the rulings and directives to regulate certain behaviors, disagreements, plus unlawful acts are available to individuals for use in resolution of disputes and to enforce promises.Law weaves into practically every aspect of the daily activities of businesses as well as individuals within the society. The evolution of law from basically a way to protect property rights to the intricate and complex system it has become is astounding. The research will examine the numerous roles and functions of law in relation to business and society. Laws govern many facets of business. They regulate—business operation, environmental standards, treatment of employees, workplace requirements—to name a few.The broad design of the law is to discourage against predatory business practices and to protect the consumer from fraudulent advertising or receiving inferior products as well as provide remediation to victims when necessary. To accomplish this, the federal as well as state governments have policing powers to enforce the rules a society chooses to govern itself. This law incorporates into the fabric of the society. For example, there are federal and state laws that control e-business commerce plus international business dealings.Congress derives its power to regulate the flow of commercial activity along interstate and intrastate highways likewise railways together with the vehicles that transport the goods from the commerce clause. The application of these powers varies. According to Melvin (2011), â₠¬Å"However, the direct and broad power to regulate all persons and products related to the flow of interstate commerce is the fundamental source of its authority. † Furthermore, manufacturing, distribution, shipping, employment, patents, trademarks, and copyrights are under government regulation as well.Federal law supplants state law when they conflict in intrastate matters, e. g. Cipollone versus the Liggett Group, Inc. Laws hold companies responsible for product safety. Therefore, manufacturers as well as sellers are liable to consumers for damaged or defective products as well as injuries or deaths that may result from their use. For example, the government establishes laws to standardize the quality of food, drink, and medicines consumers ingest while issuing additional laws to control the mechanical quality of automobiles and appliances—home and commercial.Enterprises employ these laws throughout the production process to ensure compliance. Consequently, the publi c is safer from injury and disease through quality control of products. There are numerous federal agencies that regulate business (the Federal Trade Commission, U. S. Consumer Product Safety Commission, U. S. Patent and Trademark Office, The United States Trade Commission, plus The International Trade Commission), to name a few. Finally, antitrust laws keep businesses from monopolizing markets, price fixing, similarly cornering an industry.Laws touch every aspect of social behavior across walks of life. For example, the activities of a typical day may include waking at home, preparing breakfast, getting children to school, and arriving at the workplace unmindful of the laws that manipulate these acts. The day continues with the use of an identification badge to park, clock-in for work, and in some cases to access restricted areas of the building. The day concludes with a stop at the local grocery store to purchase a few items for dinner and pay for them with a bank card giving no t hought of the numerous laws that govern this business transaction.After all, the design of the law is to function in society and business in such a way that following them requires little thought. Laws provide order and a tool for the government to enforce satisfactory behavior with a precise set of rules (public laws) for citizens to adhere to, such as civil, criminal, administrative, and constitutional laws. By the power of public law the government imposes penalties (fines or incarceration) for breaking the law through civil and criminal court actions upon members of the society.The African Methodist Episcopal Zion Church has a rigorous set of laws, policies, procedures, and committee to vet potential ministerial candidates. However, since 1984 state law requires a criminal background check from the state law enforcement agency where the candidate resides before working in a day-care facility for children or senior citizens. The law further requires a one million dollar insurance rider for sexual misconduct charges that could result from counseling or visitations.The church complies with the intent of this legal mandate to protect the congregants from predators, and to avoid potential lawsuits that could bankrupt the church. In conclusion, the influence of law upon individuals’ lives begins at birth, and ends following death and the settlement of the estate. Law functions in marriage, separation, divorce, custody of children, birth certificates, and death certificates. To start a business, a person needs a permit, business license, and an attorney. Indeed the law influences people through the entirety of life.References Melvin, S. P. (2011). The legal environment of business: A managerial approach: Theory to practice. New York, NY: McGraw-Hill/Irwin. Azria, S. M. (2008). Wills, Trusts, Estates & Taxation. Wills, Trusts, Estates & Taxation — Research Starters Business, 1. Bednar, J. (2006). Making Dollars and Sense. Businesswest, 23(5), 18. Bod en, D. (2008). How to take (legal) action. International Financial Law Review, 27(5), 96-99. Flynn, S. I. (2008). Business Estate Planning. Business Estate Planning — Research Starters Business, 1.

Smart Materials Essay Example | Topics and Well Written Essays - 1250 words

Smart Materials - Essay Example Certain materials are responsive to changes in electric field or magnetic field such as Piezoelectric materials or Magnetic Shape Memory Alloys; while others are responsive to changes in temperature, light or even pH value. The scope of this paper is to introduce four such smart materials namely, Piezoelectric materials, Magnetic Shape Memory Alloys, Halochromic materials and Chromogenic Systems. These smart materials would be discussed in the paper along with their practical usage and limitations. Piezoelectric materials are smart materials that generate voltage when force is applied on such materials. The word ‘Piezo’ is a Latin term that means to press (How it works, 2003). In this manner, such materials are able to change their proportions when force, typically uni-axial compressive force is applied. One is able to identify piezoelectric materials as they produce voltage with the application of force or stress. Another identifying factor is the ability to change shape or become deformed once force is applied. Some examples of Piezoelectric materials are Quartz, Barium Titanate, Lead niobate and potassium sodium tartrate. The initial usage of this device was found during the Second World War as they were used in SONAR devices. Commonly such materials are used in electro-mechanical devices including speakers and microphones. In microphones, Piezoelectric materials detect audible frequencies. They are also used in welding to serve various purposes such as welding inflexible thermoplastics, metal micro-bonding, steam welding sheets, insertion of metal into plastic etc. They are also used in hydrophones to monitor the heart and the circulatory system (Kutz, 2002). While the usage of Piezoelectric materials is quite widespread, they are not without their limitations. ‘The most obvious limitations are associated with non-linearity, hysteresis, creep, depoling, electrical breakdown, Curie temperature’

Major Project Research Paper Example | Topics and Well Written Essays - 2000 words

Major Project - Research Paper Example As such, these states are referred to as the â€Å"right to work states.† The right to work laws legally ensures that the right of workers to make decisions as to whether to be union members or not, is upheld. The institution of these statutes in the states that have accepted them prohibits institution of agreements made between employers and labor unions, which compel employees to pay union fees or be members of unions, either prior to or after being hired (DelPo & Guerin, 2011). Currently, there are 23 states which are considered right-to-work states and the total would be considered 24 because the territory of Guam has also adopted the laws (Cooper, 2004). State statutes are in a constant flux and there may be new members too as other states such as Indiana contemplate instituting the laws. A large number of states that adopted the right-to-work laws did so in the 1940s and 50s after the legislation of the Taft-Hartley Act of 1947. This act allowed the states to institute the right-to-work laws after the 1935 pro-union Wagner Act was deemed to have given too much power. Currently, 27states as well as the District of Columbia have not yet adopted the rights-to-work laws (Cooper, 2004). The table below shows the legislation timeline for each of the 23 states. Note: It has to be noted that Indiana (1965), New Hampshire, and Delaware (1947) instituted the right-to-work laws in the years within the brackets preceding each state, but they are not included in the table above because they have since then repealed these laws. Prior to the legislation of the Taft-Hartley Act in 1947, which permits states to legislate right-to-work laws, the 1935 Wagner Act allowed unions to have exclusive representation powers. This allowed unions to be the voice of all employees in unionized organizations. Under this legislation the union would be recognized as the official employee’s voice if it could be able to secure 50% of the employees’ votes. For example, if an

Five-Year Career Development Plan Research Proposal

Five-Year Career Development Plan - Research Proposal Example I will know more as I investigate this opportunity. I intend to find a specific career and then look into what I need to do to augment the skills I have learned in my business classes. I know that I will need to go to a Chamber of Commerce or a specific program that can give me information on small business development. I will need to develop the skills of an entrepreneur which means I will need to work well on my own and be motivated to do the work that I love to do. Brown (2007) suggests that there are seven areas that an entrepreneur must have or must hire someone to do for them. These seven skills include: marketing and sales, customer service, human resources, accounting and finance, administration, worth the effort and operations and production. I have some skills in several of these areas and would hire out my needs in other areas. As an example, I would not do well with my own accounting and finance because I do not like numbers and my math is not strong. I would hire an accountant to help in this area. I will learn more abou t Internet marketing because I believe that this is the way that most businesses achieve greatness when they are small. I will investigate this area more and use social networking to further my marketing needs. Whether I have a product or a service I am certain that I can find the information I need about how to turn my business into a profit using the Internet. I have explored the Myers Briggs Type Indicator (MBTI) to find out information about my personality and how it relates to my skills. I found out that I am an Introverted Sensing Thinking Judger (INTJ). This means that I have several things in my current abilities that will work with my interests and beliefs. I am receiving my Bachelors Degree in business and I now I will need other training but I am not sure in what subjects yet. I have a high school diploma and I have attended a few other classes. Business has always interested me and to have my own business is

Fred tunnel and Horse in Tetons and Seated Indian Essay

Fred tunnel and Horse in Tetons and Seated Indian - Essay Example With regard to the historical context of the paintings, the two paintings are consistent with the post impressionist historical styles of painting which began towards the end of the 19th century. For instance, the styles used in two paintings largely emphasized outdoor paintings with colorful palettes, landscape scenes as well as daily life scenes. All these styles were heavily used during the post impressionist periods. Additionally the artists’ use of colors and shades also suggest that it the works may have been done in the 1900s when the post impressionist styles were the common style (Penelope, 67) .This period was characterized by cultural and racial conflicts between the white American immigrants and the natives. For example the artists may have used more white colors on the paintings to idealize the white race and the western life. One important question that arises in the analysis of the two pictures is whether they have effectively passed across the information that they were intended for. The costumes and ornaments are still regarded as important in several societies due to their continued use in our contemporary society. In both the two paintings, the relationship between the form presented by the artists and the iconography is quite complex. Generally the iconographical requirements have significantly affected the formal elements of the two paintings. In â€Å"Sitting Indian†, Joseph Sharp has effectively included some of the details such as images of the hunted animals.

European Integration Essay Example | Topics and Well Written Essays - 2250 words - 3

European Integration - Essay Example It was through this European Integration Roundtable of Industrialists is that the transnational corporations tried to influence the European integration process, the nineteen eighties. It was this ERT forum from where a number of industrialists of Europe helped in the forming of agenda and the re-launching of the single market program. This also led to the development of transnational elite capitalists you brought in a number of neo-liberal concepts and ideas which eventually helped the formation of a single market program. Adriaan H. Dierx(2004, p. 237) states ‘The process of European integration and the past decade has been closely associated with the single market program (now evolved into the internal market strategy) and economic and monetary union. This process has been pushed forward by highly publicized deadlines and target dates giving the first impression of abrupt change in the economic environment. In practice, however, businesses and consumers tend to anticipate such change and modify their behavior even before the formal change is made. On the other hand, often the full impact of the economic reform is felt only years after their introduction. This implies that European integration as a continuous process, one in which the speed of progress may be affected by policy initiatives such as the SMP and the EMU and which takes place in conjunction with other events influencing the behavior of economic agents and the performances of the economy, such as globalization or the ICT revolution.à ¢â‚¬â„¢ The ERT can be viewed as an elite comprising of trans-national capitalists who have neoliberal concepts and who occasionally takes part in the social struggle for dominance in the European culture. Europe is not is becoming a part of the global economy, politically and financially. Therefore the businesses in Europe are transforming to globalized and transnationalised businesses. There are basically three large economic blocks in the world:  USA, Japan, and Europe.  

Current operations-based 'customer' issue of a SME in Southern England Essay

Current operations-based 'customer' issue of a SME in Southern England region - Essay Example In the year 2002, the company had launched the brand O2 for the betterment of the business. The organization operates in more than 25 countries employing 264000 employees and serving almost 287 million customers. It helps in developing the client’s business by means of international advertising or telecommunication solutions. Ronan Dunne is the existing CEO of the organization. He has managed all his responsibilities in an efficient manner from his very first day of taking over the responsibilities from the previous CEO. He has succeeded in generating as well as maintaining consistency in earning high revenues. The company offers 2G, 3G and 4G services to the customers all over the country and also, in some parts of Europe. Along with its telecommunication services, the company is also known for providing fixed line services. The organization uses its name in its logo and portrays an image of an oxygen provider to its customers. O2 is also known for its charity purpose and has a tie up with a large number of charity groups. One of the examples is its tie up with Academy Music Group. Their partnership had resulted in the establishment of O2 academy. Current Research Operational Activity Digital communication serves as one of the fundamental parts for almost all the individuals in the world. In the developing as well as developed countries, the communication facility is developing at a fast rate along with the advancement of technology. In the present scenario, the cell phones are almost indispensible for all the individuals involved in mainstream activities. It has become one of the most important reasons for increasing the value of O2 from the global perspective. In 2012, there were approximately 82 million users who had subscribed to various mobile service providers. It has also been seen that the number of internet users have increased rapidly along with increasing mobile phone subscribers. The data traffic almost doubled itself in 2013 as compared to the previous year. In United Kingdom, there are a large number of players operating in this particular segment, O2 being one among them. The international market of the telecommunication services tends to be highly competitive with passage of time. It is mainly because of the rapid technological advancements, thereby resulting in the development of modern channels of communication. Xavier and Ypsilanti (2008) have argued that in this period of varying communication tools, implemented by the consumers as well as the marketers, the consumers reflect various motivational factors behind their purchasing services from a definite mobile service provider. Therefore, the companies operating in this industry are highly engaged in the diversified process of attracting the customers and retaining them by implementation of various effective business strategies. O2 uses the benefits of its global reach for standardizing the business all across the world by improving the cost efficiency and reduc ing the time involvement in launching new products and services for the customers. It has recently collaborated with Vodafone for operating as well as managing one single network grid in United Kingdom, which would be run by two most competing mobile internet networks. The joint collaboration of both the companies would offer indoor 2G and 3G, thereby covering 98 percent of the UK population within 2015 (Vodafone Group, 2013). Service Differentiation The customers as well as the

Argue about the misconception of Technology in Children Lives Essay

Argue about the misconception of Technology in Children Lives (Research based arguments of minimal 5 sources- 2 primary, 3 secondary, minimal 2 scholarly sources, needs citation in each paragraph) - Essay Example I could edit picture easily at my phone, mixing music through the application, and specialize for chatting and texting.  However, I recently realized that children now on is smarter than me for using technology. The toddlers were being introduced to IPod and keep playing with their gadget instead of playing with their friends. I also find out that child in this era has being addicted to games and not being responsible for their assignment. Skoric feels that addiction is not simply playing video games throughout but playing video games to the point of neglecting their responsibilities. However, people think --parents--that technology really helps child to learn and enhance more creativity. "Is it true that technology educate child to a better learner or it actually isolated them from the world and changes their behavior?" I believe that technology is harming the children because of the negative effects it is giving them. Children of today are mostly on their phones and iPods playing games. This leads them to becoming game addicts and inactive in other things that can help make their life improve such as studying. For example, they just sit in their bedrooms playing games and there is drop in their school performance. According Skoric in Cyberpsychology & behavior, trend of addiction are negatively related to academic performance. This is because they give more of attention to playing video games than school work. The child put effort to win the games and miss out on the value of educations. Mostly, the children who get addicted to these games have problem with interacting with other kids because they spend a lot of time on computer device playing video games. These make them even more addicted and there is a drop in their academics since they do not create time to study (Skoric 572). However, this game can also be good for the children if they play for reasonable amount of time. Skoric describes that it may

Reflection assignment for The Pearl by John Steinbeck Essay - 1

Reflection assignment for The Pearl by John Steinbeck - Essay Example For instance in La Paz the Song of the Family is sung by Juana to keep away evil; at the start, amidst the Song of the Family, the appearance of a scorpion leads to the beginning of the Song of the Evil. This therefore means that an event that is bad or unpleasant may bring about the Song of Evil to one’s mind and afterwards the Song of the Family to fight such evil as happens in La Paz and interchangeably as happens at the beginning. At other times however, songs may interplay feeding one another as when Kino is busy diving for pearls. The five things Kino wishes to do with the money from the Pearl include; a proper marriage for him and his wife in church, a harpoon, a rifle, proper clothing for his family and sending his son Coyotito to school so that he can become schooled. They are important to Kino because by wedding properly in church, his respect will increase in the community and his wife will be happy. In addition to that, if his son gets schooled, then it means he will be able to read and also open books, Coyotito will also know and it is through him that they will also get informed. These wishes reveal the fact that humans are always searching and yearning for big and better things and are never satisfied by what they have. They are insatiable and want to better their lives no matter what stage of life, race or class they are in. The five things that Kino desires to do after selling the pearl include; marrying his wife in church which represents an opulent and fashionable way of marrying, mostly practiced by the rich. Kino also wishes to buy his son a cap for yachting together with a sailor suit from the US. This represents the good life that is enjoyed by the rich and Kino simply is dreaming of what the rich do with their money. Human beings envision that buying clothes and dressing expensively is one way of looking rich. Kino also desires for his son to go to

How Technology Has Changed the World Essay Example for Free

How Technology Has Changed the World Essay The world has surely changes a lot in just a few years. The life people are living right now is way different than the life people used to live some years back. And if theres something responsible for this change, its technology. Technology has surely changed the world. It has also changed or thoughts about gadgets and other technological stuffs. Technology is that one thing that has been evolving each and every day making life of people simpler and easier. Technology is something that everyone is fond of. Doesnt mater if its a 5 year old boy or a 60 year old man,. everyone is interested int technology Technology has changed the way we look at out lives. Technology has brought a drastic change in your life. In our parents time, the term Luxury referred to Gold, Silver, acres of land they owned. But now, the most luxurious products are Gadgets or technological innovations. Technology has become everything for people. You want to decorate your house, you go for a big 65 led TV. You love music, you go and get a 5.1 Woofer which gives enough bass to shake the whole building. What you have describes your class. Anyone today wants to stay updated. No matter who you are, you will need to know about technology if you dont want to be called a fool. Technology has inspired a lot of us including me. So, let us all stay updated and know about gadgets. Read more:Â  How Technology Changed Our Lives

Cooperative Vehicle Safety System for VANETs

Cooperative Vehicle Safety System for VANETs COOPERATIVE VEHICLE SAFETY SYSTEM FOR VEHICULAR AD-HOC NETWORKS T. Sujitha, Final year M.E(CSE), ABSTRACT Vehicular ad hoc networks (VANETs) are a one form of wireless networks used for vehicles communication among themselves on roads. The conventional routing protocols are suitable for mobile ad hoc networks (MANETs). But it’s poorly in VANETs. As communication links break often happen in VANETs compare than in MANETs, the reliable routing is more difficult in the VANET. Research work has been done to the routing reliability of VANETs on highways. In this paper, we use the cooperative vehicle safety system for VANETs. The cooperative vehicle safety system helps to capture the future positions of the vehicles and determines the reliable routes preemptively. This paper is the first to propose a cooperative vehicle safety system for VANETs gives quality-of-service (QoS) support in the routing process. A new mechanism is developed to find the most reliable route in the VANET from the source vehicle to the destination vehicle. Through the simulation results, that the proposed scheme s ignificantly give good result compare than other literature survey. Keywords- vehicular ad hoc network (VANET),DSRC, IEEE 802.11,sensor,OBU,RSU. 1.INTRODUCTION Every day, a most of people die, and many people are injured in traffic accidents around the world. The desire to improve road safety information among vehicles to prevent accidents and improve road safety was the main motivation behind the development of vehicular ad hoc networks (VANETs). VANETs are a promising technology to enable communications among vehicles on roads. They are a special form of mobile ad hoc networks (MANETs) that provide vehicle-to-vehicle communications. It is assumed that each vehicle is equipped with a wireless communication facility to provide ad hoc network connectivity. VANETs tend to operate without an infrastructure, each vehicle in the network can send, receive, and relay messages to other vehicles in the network. Figure 1.1 Structure of Vanet Ad-hoc Networks This way, vehicles can exchange real-time information, and drivers can be informed about road traffic conditions and other travel-related information. The most challenging issue is potentially the high mobility and the frequent changes of the network topology. In VANETs, the network topology could vary when the vehicles change their velocities and/or lanes. These changes depend on the drivers and road situations and are normally not scheduled in advance. Embedded wireless devices are the main components of evolving cooperative active safety systems for vehicles. These systems, which rely on communication between vehicles, deliver warning messages to drivers and may even directly take control of the vehicle to perform evasive maneuvers. The cyber aspects of such applications, including communication and detection of vehicle information are tightly coupled with physical dynamics of vehicles and drivers behavior. Recent research on such cooperative vehicle safety (CVSS) systems has shown that significant performance improvement is possible by coupling the design of the components of the systems that are related to vehicle dynamics with the cyber components that are responsible for tracking other cars and detecting threats. The types of possible actions and warnings in vehicle safety systems range from low-latency collision avoidance or warning systems to moderate-latency system that provide heads up information about possible dangers in the non immediate path of the vehicle. The main differences of these systems are the sources and means of information dissemination and acquisition. In active safety systems, vehicles are required to be continuously aware of their neighborhood of few hundred meters and monitor possible emergency information. This task can be achieved by frequent real time communication between vehicles over dedicated short range communication (DSRC) channel. In addition to inter-vehicle communication; roadside devices may also assist vehicles in learning about their environment by delivering traffic signal or pedestrian related information at intersections. The main requirement of these active safety systems is the possibility of delivering real-time acquired information to and between vehicles at latencies of lower than few hundred milliseconds. Prototypes of such systems are being developed by many automotive manufacturers. 2. EXISTING SYSTEM In DSRC based safety systems, the cyber components are selected so that they meet the requirements of active safety. Nevertheless, the existing designs fall short of supporting a full-fledged CVSS in which a large number of vehicles communicate and cooperate with each other. The main reason behind the issues with the current designs is the level of separation in the design of different components. Later in this paper we describe methods to achieve better performance by further cooperation of the physical and cyber sub-components. In the next subsection we describe existing active safety CVSS systems and their designs. Figure 1.2 Communication in VANET systems. The traditional design of the CVS system, based on the structure depicted, is a straightforward design following the recommendations of an early report by vehicle safety communication consortium (VSCC). According to this report, it is suggested that vehicles should transmit tracking messages every 100ms, to a distance of at least 150m (avg. 250m). Therefore, the message generation module in becomes a periodic process that outputs a sample of the current state of the vehicle in a message every 100msec. The DSRC radio power is set to reach the suggested distance. Given the issues of the above design in crowded networks, several enhancements have recently been proposed to improve the performance of CVS systems beyond the early solutions set forth by VSCC. One such method is the work in [22] that proposes to fairly allocate transmission power across all cars in a max-min fashion; this method helps reduce the load at every point of a formulated 1-D highway and thus reserves bandwidth for emergency messages with higher priorities. This method assumes a predefined maximum load as the target. In another work, a message dispatcher is proposed to reduce required data rate by removing duplicate elements, here, the idea is that many applications require the same data elements from other vehicles. The message dispatcher at the sender side will group data elements from application layer (i.e., the source) and decides how frequently each data element should be broadcast. The above methods focus on the computing module, as defined in this section, and try to improve its performance through observing the behavior of the application, or by incorporating limited physical process information in the design of the computing module. While the above improvements do enhance the performance of CVS systems, these designs do not consider the mutual effects of computation, communication and physical processes on each other. In this, try to identify such mutual effects and propose a design that uses the knowledge of the tight coupling of cyber and physical processes to the benefit of a CVSS system. DESTINATION SEQUENCED DISTANCE VECTOR (DSDV) DSDV is a proactive protocol that maintains route to all the destinations before requirement of the route. Each node maintains a routing table which contains next hop, cost metric towards each destination and a sequence number that is created by the destination itself. This table is exchanged by each node to update route information. A node transmits routing table periodically or when significant new information is available about some route. Whenever a node wants to send packet, it uses the routing table stored locally. For each destination, a node knows which of its neighbor leads to the shortest path to the destination. DSDV is an efficient protocol for route discovery. Whenever a route to a new destination is required, it already exists at the source. Hence, latency for route discovery is very low. DSDV also guarantees loop-free paths. 3. PROPOSED SYSTEM Cooperative message authentication protocol, which augments the basic short group signature protocol by mitigating the computation overhead in the regular broadcast phase. According to, the verification time for short group signature is 11ms with a 3 GHz Pentium IV system. In a typical public safety application, each vehicle broadcasts safety messages every 300 ms, which implies that each vehicle can at most process messages from other vehicles in a stable system. However, according to the measurement, there may exist as many as 87 vehicles broadcasting messages within the 300m communication range of a receiving vehicle, far exceeding its processing capability. Therefore, we propose a cooperative message authentication protocol to fill the gap between the workload and the processing capability. 3.1 PROTOCOL IMPLEMENTATION RSUs broadcast I-public keys, G-public keys of themselves and their neighbor RSUs with certificates and identities of revoked RSUs in their neighborhoods regularly. Authorities employ benign RSUs around compromised RSUs to implement revocation by regular broadcasting those compromised RSUs’ identities. When a vehicle detects the hello message, it starts registration by sending its I-public key and the certificate to the RSU if the RSU is not revoked. Normally, a public key should not be encrypted. However, in our system model, each vehicle’s I-public key is unique, so it is also an identifier of the vehicle. We encrypt it to protect vehicle’s privacy. The RSU sends the hash value of the G-private key which plans to be assigned to the vehicle and the signature of the hash value, vehicle’s I-public key and RSU’s I-public key to the vehicle. RSU’s I-public key is also unique. The vehicle can identify the RSU’s legitimacy after it verifies this message because the RSU uses its I-private key in the message. The vehicle encrypts its Npri and the timestamp by using authorities’ public key. Then, it sends the encryption data with the timestamp and the signature of corresponding information, message 4, to the RSU. The encryption of its Npri and the timestamp is a commitment. It can be useed to detect illegitimate users later. Meanwhile, the signature signed by the vehicle binds vehicle’s information and the assigned G-private key. Then, the RSU cannot re-map them because the RSU does not have vehicle’s I-private key. The RSU sends the G-private key to the vehicle. The vehicle finishes registration procedure after it gets a valid G-private key. Then, the RSU stores the information, as in the local database. The signature in the fifth item is the signature that the RSU receives in message. If authorities need the information of a vehicle when there is a dispute, the RSU has to send the vehicle’s corresponding information to authorities. 3.2 PERFORMANCE EVALUATION The performance of the proposed algorithm is evaluated through network simulator version 2. A cooperative message authentication protocol(CMAP) is presented to alleviate vehicles computation burden. In the protocol, because vehicles share their verification results with each other in a cooperative way, the number of safety messages that each vehicle needs to verify will be reduced greatly. A new research issue of the protocol is how to select verifiers in the city road scenario. Thus, we propose three verifiers selection algorithms, n-nearest method, most-even distributed method and the compound method for the CMAP. Performance metrics are utilized in the simulations for performance comparison. Packet arrival rate The ratio of the number of received data packets to the number of total data packets sent by the source. Energy consumption The energy consumption for the entire network includes transmission energy consumption for both the data and control packets. Average end-to-end delay The average time elapsed for delivering a data packet within a successful transmission. Control overhead The average number of transmitted control bytes per second, including both the data packet header and the control packets. Collision rate The average Collision rate for the entire data transmission from source to destination is much controlled and reduced when compared to the existing protocol. 4. ELLIPTIC CURVE DIGITAL SIGNATURE ALGORITHM ECDSA is Elliptic Curve Cryptosystem (ECC)-based implementation of the commonly used digital signature algorithm. ECC provides the same security level as the other discrete logarithm approaches, while the size of the required ECC credentials is much smaller than that of the discrete logarithm systems. The WAVE security service adopt ECDSA-based message authentication for vehicular communications. Two standard elliptic curves namely P-224 and P-256 have been suggested for general purpose message authentications, and certificate authentications in VANETs. A VANET entity is required to transmit periodic safety messages containing its current coordinates, speed, acceleration etc. to the neighboring devices. The typical interval for safety message broadcasts ranges from 100 ms to 300 ms. An authentication scheme has to be incorporated in order to provide reliability and trust for the delivered safety information. Received messages are verified by the receiving entity to ensure the message integrity, and authenticity of sender’s identity. Unfortunately signature verification incurs a cryptographic processing delay at the verifier’s end. Although the verification delay for ECDSA is in the order of milliseconds, with hundreds of vehicles in a dense traffic scenario, an OBU would receive an enormous amount of periodic messages per unit time causing a bottleneck to the authentication process at the receiver end. If OBUs are configured to broadcast their periodic messages every 100 ms, under a heavy traffic scenario, many of the safety messages would either be discarded due to the constrained buffer size of the verification process, or accepted without any verification. Therefore in busy traffic hours, a receiver of vehicular messages would either risk a fatal road-traffic consequence, or it would reject a significant portion of received messages without authenticating when its maximum verification capacity is reached. The current WAVE standards do not include an efficient anonymous authentication scheme for vehicular messages, or even an intelligent authentication strategy which can efficiently verify from a massive number of vehicular safety/application messages. 5. CONCLUSION The proposed protocol designed an identity-based anonymous user-authentication scheme and a cross-layer verification approach for WAVE-enabled VANET’s safety messages. A variation of the conventional ECDSA approach is used with the identity-based signature approach where the common geographical area information of signing vehicles is taken as the signer’s identity. This exempts a vehicle from the mandatory inclusion of a trusted third-party certificate with each broadcast message in a VANET while a user is still identifiable by the trusted third-party up on a dispute. A cross-layer message verification scheme verifies the received messages based on their MAC traffic class and traffic intensity. This ensures that under the rush hour congestion or traffic accident most important messages will not be missed by the verifier. Security analysis and performance evaluation justify our authentication and verification approach for WAVE-enabled vehicular communications. REFERENCES [1] C. E. Perkins and E. M. Royer, â€Å"Ad-hoc on-demand distance vector routing,†in Proc.2nd IEEE WMCSA 1999. [2] V. A. Davis, â€Å"Evaluating mobility models within an ad hoc network,† M.S. thesis, Colorado Sch. Mines Golden, CO, USA, 2000. [3] A. Ferreira, â€Å"On models and algorithms for dynamic communication networks: The case for evolving graphs,† presented at the 4e rencontres francophones sur les ALGOTEL, Meze, France, 2002. [4] M. Rudack, M. Meincke, K. Jobmann, and M. Lott, â€Å"On traffic dynamical aspects of inter vehicle communications (IVC),† in Proc. IEEE Veh.Technol. Conf., 2003. [5] H. Menouar, M. Lenardi, and F. Filali, â€Å"A movement prediction-base drouting protocol for vehicle-to-vehicle communications,† in Proc. 1st Int.V2V Communication Workshop, San Diego, CA, USA, 2005. [6] T. Taleb, M. Ochi, A. Jamalipour, N. Kato, and Nemoto â€Å"An efficient vehicle-heading based routing protocol for VANET networks,†in Proc.IEEE Wireless Communication ,2006. [7] G. M. T. Abdalla, M. A. Abu-Rgheff, and S. M. Senouci, â€Å"Current trends in vehicular ad hoc networks,† in Proc IEEE Global Inf. Infrastruct.Symp., Marrakech Morocco, 2007. [8] V. Namboodiri and L. Gao, â€Å"Prediction-based routing for vehicular adhoc networks,† IEEE Trans.Veh Technol, 2007. [9] K. T. Feng, C. H. Hsu, and T. E. Lu, â€Å"Velocity-assisted predictive mobility and location-aware routing protocols for mobile ad hoc networks,† IEEE Trans Technol, 2008. [10] J. Monteiro, â€Å"The use of evolving graph combinatorial model in routing protocols for dynamic networks,† in Proc. XV Concurso Latinoamericanode Tesis de Maestrà ¬a, 2008. [11] G. Pallis, D. Katsaros, M. D. Dikaiakos, oulloudes and L. Tassiulas,â€Å"On the structure and evolution of vehicular networks,† in Proc. IEEE/ACM Meeting Symp. MASCOTS, 2009. [12] S. C. Ng, W. Zhang, Y. Zhang, Y. Yang, and G. Mao, â€Å"Analysis of access and connectivity probabilities in vehicular relay networks,† IEEE. Areas Communication, 2011.