Saturday, August 31, 2019
Living together before marriage Essay
The beautiful wedding and the romantic honeymoon are over; now itââ¬â¢s time for the real work to begin ââ¬â the marriage. You move into your dream home ready to begin your life together, but this is the first time you are living together as a couple and there will be some challenges. Each of your habits, good and bad but mostly bad, will emerge. For him, itââ¬â¢s leaving his dirty clothes on the bathroom floor, leaving plates and cups all over the house, leaving the toilet seat up or having an obsession with pornography. For her, itââ¬â¢s leaving her cosmetics in the bathroom sink, squeezing the toothpaste from the middle, not liking to do housework or not being able to cook a decent meal. All of these habits could have been predetermined from simply living together before the marriage; which could also avoid a difficult situation. Living together before marriage is a wonderful way to begin a relationship that may lead to marriage. In the past, it was considered scandalous for a couple to live together before marriage, however, in todayââ¬â¢s society it is a necessity. Opponents of cohabitation before marriage believe that there is a higher probability of divorce when couples live together before marriage. For them, cohabitating before marriage is a bad idea as it can lead to poor communication, a lower quality relationship, and ultimately divorce. Many persons, however, take the step of cohabitation to prevent going into a marriage that may be short-lived and end in divorce. They believe that it is best to live together before marriage to test the relationship. If they live well together just as a couple, it will be an easy transition when living together married. Cohabitating before marriage can help determine whether or not the relationship will last, how difficult it will be to maintain, what problems can arise once the couple reside together, and how these problems will be solved. Living together before marriage is a precursor to living together when married as the kinks can be worked out, which can lead to a happier and longer marriage. Other opponents of cohabitation before marriage believe that once they live together before marriage the mystery and surprise of getting to know the spouse is lost. They believe that because the couple has already learnt all of spouseââ¬â¢s quirks and habits. However, proponents of living together before marriage believe that couples should really know what they are getting into before marriage. For instance, they could learn if their partner is messy or clean, or if one person believes that the housework should be done by one partner or shared between the two partners. It is often said that you really donââ¬â¢t know a person until you live with them. In living together before marriage they will learn their partnerââ¬â¢s habits, regular activities, routines, and see how well their individual quirks mesh with each other. When living apart, either party can hide certain bad habits from the other partner, however, when living together they can only hide their shortcomings for so long and eventually their true colors will be exposed. Once you live together before marriage and the parties are getting along and are compatible, there is a good chance that this behavior will continue once they get married. In the event they are not compatible, many see living together before marriage as a lower risk as if the relationship fails breaking up is considered easier than divorce. Opponents of cohabiting before marriage also believe that this brings unnecessary problems with money and finances. They believe that dealing with one personââ¬â¢s finances can be stressful, so adding another personââ¬â¢s finances into the mix will only increase the stress. This stress can be avoided once the decision to live together before marriage is made. Both parties can agree on a budget that will ensure not more is spent that what is allocated, for instance, on bills and recreational items. Once they live together, finances and the money saved can be shared between the two of them. Living together means one rental payment and one set of household bills including utilities and gas. It also allows both parties to save for other financial goals, such as investments, savings or spending the funds on the wedding. Cohabitating before marriage also gives the couple the chance to determine before the marriage how the household finances will be handled. They can decide if one person will be responsible or if it will be a joint effort. They can test run if one person is better with the finances than the other, instead of once being married arguing about it. Living together before marriage can also reveal if either party has bad spending habits of excessive debt, which they may hide living separately. I strongly believe that it is indeed important for couples to live together before marriage. It is a responsible and reasonable decision for a couple to cohabitate before making the life changing decision to marry. For me it makes sense to share one unit as both persons will learn of each otherââ¬â¢s habits, routines, regular activities, and personal differences; then decide whether or not they want to continue in the relationship. Both partners will learn the other partnerââ¬â¢s likes and dislikes, each others expectations of the relationship and how to cope in stressful times. Cohabitating before marriage can save a person from an unhappy, unhealthy marriage. Living together before marriage is definitely a necessity!
Friday, August 30, 2019
Leader Of Choice: Tony Robbins Essay
Tony Robbins practices what he preaches. He knows fully well that as a well-known personality, he must recognize the diverse workforce with which he is working with. He has developed strategies for accelerated transformations of individuals from different cultures. These transformations are not only done during the training itself, but are carried on over the long haul of individual lives. For instance, he has joined forces with other therapists in building this strategy of continuing to address the needs of the diverse groups of people across cultures. Joining with Cloe Madanes, a well-known therapist, the Robbins-Madanes Center for Strategic Intervention creates training materials and programs aimed at diverse communities. Carrying the philosophy further, Robbins has focused attention not only on adults and businessmen, but also on children in their Council for Human Rights of Children at the University of San Francisco. This is a prestigious company that champions the rights of children all over the world. And if that is not enough, the company also recognizes, in essence, that many written defenses of the diverse cultures must highlight their programs because certain groups of people are denied access to aids and tools that would make them deserving of better positions because of their economic opportunities in life.à Therefore, Tony Robbinsââ¬â¢ trainings are geared so that education can be given to these groups of people and integrated into the productive workforce. He has founded a nonprofit Anthony Robbins Foundation that provides assistance to the homeless, elderly and inner city youth as it feeds millions of people in nine countries every year through its international holiday ââ¬Å"Basket Brigade.â⬠He has given his seminars to a diverse group of people himself all over the world. Impacting the lives of nearly 50 million people, he and his company continues to reach out to all kinds of individuals. Equality in the full extent would be difficult to achieve especially considering the highly diverse cultural groups that comprise American society and the world at large.à Towards this end, Tony Robbins and his company serves as viable and sustainable channels in which the interests of people are upheld based on what is good for society in general utilizing the strategies he has developed.
Thursday, August 29, 2019
Probation and Parole Research Paper Example | Topics and Well Written Essays - 750 words
Probation and Parole - Research Paper Example Probation is usually exercised on criminals who have committed a capital offence. Both Parole and Probation are a method of reducing the overcrowding in jails by releasing them in normal society but at the same time monitoring for their behaviors. History of Parole and Probation The system of parole was introduced by Brockway Zebulon in order to facilitate more space in the overcrowded prisons. Parole provided the incentive for offenders to win their way out of prison by adopting good behavior towards inmates and wardens. Parole was introduced as the good time statute by the Department of Justice in 1867. This statute granted the power in the hands of the warden who was responsible for recommending prisoners for parole and later monitoring these prisoners. Probation was introduced in the US law by John Augustus in order to monitor the release of offenders that still pose a threat to the society, even after serving their prison sentence in full. Augustus ââ¬Ëwas the first to provid e ball for defendants under the authority of Boston Police Court in 1841ââ¬â¢ (Clear, Cole and Reisig, 187). Probations are extension to the prison sentence and were adopted by most states in 1879. Rights According to law, every individual on parole and probation is allowed to exercise certain rights. These rights are granted to the individual through the law and could only be revoked in certain conditions. Under parole and probation, the individual has the right of freedom to move. However, this freedom of movement is restricted to areas within the place specified by the individual as his residence city or state. The probationer also has to report on a weekly basis to the probationary officer to give an account of his weekly activities. In case, the probationer commits any offense, he has the right to receive notification from the court and arrange for his defense council. The probationer also has the right to speak in front of the hearing council to plead on his own behalf. Rev ocation Both parole and probation could be revoked at any time if the officer in charge believes that the individual has committed any offense or gone against the conditions of the parole or probation. In most cases, the parole and probation officer has the authority to hold the offender in custody if he has sufficient belief that the offender poses an immediate threat of society. Certain cases with respect to revocation have brought changes in existing laws. The Morrissey v. Brewer in 1972 is one such case. This case gave the parolee certain rights when being considered for revocation. Under these rights, the parolee has the right to written notice before considered for revocation and evidence and laws violated must be identified beforehand. The Parolee also has the right to question the evidence and the witnesses presented for the case. Another case is The Pennsylvania v Scott (1998), which bars the use of evidence that has been collected without a search warrant from the paroleeà ¢â¬â¢s residence. Revocation laws were also updated after Gagnon v. Scarpelli (1973). This allowed probationers the right to hearing in case of being charged for any offense and the right to hire a lawyer for the hearing council (Alarid, Cromwell and Carmen, 148). Release on Parole and Probation There are certain general conditions for Parolees and Probationers released on
Wednesday, August 28, 2019
A Case Study of Ping an Life Insurance Company of China Dissertation
A Case Study of Ping an Life Insurance Company of China - Dissertation Example In the competitive markets, development and maintenance of good customer relations are indispensable for the success and survival of an organization in the long term. In this context, the concept of Customer Relationship Management (CRM) has evolved and it has gained significant importance in the global business scenario. In the emerging markets, customer management theories are being practically considered in the decision making processes of business firms. At present, Chinese firms are increasingly applying the CRM system with the aim of facilitating good customer relationship. In the competitive framework of the market, choices and decisions of customers play an important role in the performance of businesses. Customers are the key element that plays an important role in the survival of business firms (Cheng, 2005). CRM systems allow firms in China to focus on the customers and take greater care of their demand through more personalized service offerings (Dyche, 2002). It has been found through research that winning a new customer is almost five times more costly to a firm than retaining the existing customers. On the other hand, an additional 5 percent of existing customers are capable of increasing the profit by nearly 100 percent (Cheng, 2007). This shows that it is very important for management to implement the CRM system in their organizations. CRM is one of the modern day developments that have taken corporate organizations to a greater level of business. Chinese firms are adopting the CRM system fast. This process involves the implementation of software that would record the details of the companyââ¬â¢s relationship with its customers through the performance of various indicators. Several advantages have been found to be associated with the process of CRM and various benefits accrue to the companies that implement this system. However, certain limitations are also associated with the process of CRM. Ping An Life Insurance Company of China, Ltd. rec ognizes the importance of CRM. The company was established as a major subsidiary of the parent company, Ping an Insurance (Group) Company of China, Ltd. In the year 2002, Ping was the first company in China that had a shareholding structure. Gradually Ping An Insurance Group has grown and has begun offering various financial services including insurance products as core services and banking, securities, and investment services as tertiary businesses (Ping An, 2009). The CRM system helps the organization to focus on the business processes, marketing processes and customer service offerings of the company. This leads to the development of client relationship and maximization of ââ¬Ëcustomer valueââ¬â¢ in long run. In essence, implementation of CRM has brought a shift within the company from being a production-oriented organization into a customer-oriented organization. After implementing CRM, the company improves its communication channels. The information technology (IT) system acts as a coordinating agency across the different levels of operations (Kanji, 2002). Since the organization becomes more customer-centric, it also needs to train its employees in order to make them more involved in the business process and more efficient.
Tuesday, August 27, 2019
Case study for Coca Cola Marketing Analysis Example | Topics and Well Written Essays - 2000 words
For Coca Cola Marketing Analysis - Case Study Example Coca Cola is an example of such an establishment that has remained a proficient player in the beverage trade amidst the increasing competition in the industry. It was established in the nineteenth century and it is the market leader in producing, distributing and selling soft drinks in the international market. The company operates in nearly 200 nations and has invented over 400 brands since it was founded (The Coca Cola Company). Its leading brands include Coke, Sprite, and Stony among others. Their success has its major rivals at bay including Pepsi and Nestle. This case study gives an in depth analysis of the companyââ¬â¢s marketing strategy and the potential issues facing the company. COMPANYââ¬â¢S OVERVIEW As far as the global manufacturing, distribution and sale of soft drinks are concerned, the Coca Cola company in the lead. The company was founded in 1886 in Atlanta Georgia by John Pemberton who was a pharmacist by profession (The Coca Cola Company). His formula was lat er purchased by Asa Chandler in 1891 and this marked the advent of the companyââ¬â¢s business achievement. It sells approximately 400 brands making it the top company in terms of market capitalization. Additionally, the entity enjoys impressive customer loyalty and has licensed distributors in over 200 countries. This fact ensures that the entity is in a position to segment its customers hence the high profitably levels. In spite of the harsh economic conditions, the company has remained financially stable over the years. This is due to the companyââ¬â¢s ability to adapt to cotemporary marketing strategies such as the use of online marketing through social media such as Twitter, MySpace and Face book (The Coca Cola Company). The company has a history of having a strong corporate culture that propelled the companyââ¬â¢s success to date (The Coca Cola Company). For example, the company sponsored the FIFA 2010 World Cup and has constructed wildlife reserves. Potential Issues F acing the Company. Although the company has a huge part of the market share, it is clear that it faces stiff harsh competition from other key players in the industry. However, the company has been experiencing a constant increase in the stocks since 2008 as compared to its major rival Pepsi Co, Inc. Furthermore, the non ââ¬â alcoholic industry is increasingly competitive with numerous companies. There are competitive products in the market including carbonated drinks, energy drinks, packaged juices and fresh juices. Other significant competitors of the company include, Cadbury Schweppes plc, Nestle and Groupe Danone (Lopez 25). The competitive factors are with regard to pricing, product innovation, sales promotion, dispensing equipment, packaging, and production techniques. Moreover, the company competes in terms of brand name and trade mark protection. The company faces other issues in their operations that may have an impact on its future. In the recent past there have been fl uctuations in the value of the dollar against the common currencies. The larger percentage of the entityââ¬â¢s income is generated outside the United States and owing to the strong performance of the dollar the firmââ¬â¢s revenues from other parts of the world its profits may fall considerably (Lopez 38). The other issue facing Coca Cola is scarcity of water. The
Monday, August 26, 2019
New Energy Drink Assignment Example | Topics and Well Written Essays - 2750 words
New Energy Drink - Assignment Example g will be used to determine what should be the breakeven point in units as well as in sales so that the business can attain minimum revenue of zero profit. Using the information related to production and distribution, certain estimations will be done. This will require the use of cash budget, forecasted income statement and forecasted balance sheet will be developed. A plan is also framed to develop a consortium of small number of investors interested in developing a new energy drink, wherein a discussion related to financial issues will be carried out. Hence after conducting the required financial analysis, a properly planned ââ¬Ëpitchââ¬â¢ of the project will be developed. It will aim to convey the required information to the potential investors in a systematic manner and convince them for investing. The intended drink is set to combine the best of a health and a soft drink. Not only will it have the replenishing quality of a soft drink but will also address the energy requirements of its consumers. This energy drink will be available in a ready-to-drink form. This drink is named ââ¬ËMy Drinkââ¬â¢ in an attempt to bring every section of the population under its fold. To keep the product eco-friendly, it will be available in tetra packs made up of bio-degradable material. Initially only 250ml tetra packs will be launched in the market but later on sizes varying from 400ml, 1000ml and 1500ml will be launched according to the demand. Though the product will now be introduced in a single continental flavour, in future the company might introduce certain flavours like orange, lemon, vanilla, strawberry, chocolate, mix fruit and so on. The company has decided to take the help of a distributing firm until it has gained pertinent knowledge about the market operations. This is because investing in developing personal distribution, in the initial days, is not only risky but also results in high investment cost. It has also been decided to hire a distributer who will take the
Sunday, August 25, 2019
SWOT Analsis Assignment Example | Topics and Well Written Essays - 750 words
SWOT Analsis - Assignment Example Second reason is the promotion the company has in football clubs which is my favorite game and lastly is the attracting advertising criteria for the different brand it manufactures on television. The company uses large volumes investment styles in the market to cope up with the giant competitors. Its objectives are subjected towards growth, value, and quality index-oriented brand approaches. Despite the company facing the macroeconomics competition challenges it is able to attractively invest and market its brand globally. The X&Y company objectives and strategy are based on long-term capital growth and best quality of non-alcoholic brand known as teens. (Allen, 2009). The strength of this company is openly found on aspects such as; the employees are able to enjoy the services provided by the company as well as the allowances. This hence has great significant on efficient output and the quality of the brand. Employees benefit from the job security thus easing supervision and management control. The product of X&Y Company is loaded with romanticizing image which is attractive to many people. It is probably enjoyed in the world with an average of 500 million people per day. On global scales, the company is able to market its brand in large volumes and therefore making cash inflows in its equity. The consumer purchasing power is increasing by 5% worldly though faced with giant competitors like coco cola. Market trend information is another aspect. The company has developed a quality information online desk to enhance financial information sharing and market forces effects. X&Y Company is a debt-free, with ample liquidity. The cash and supported portfolio investment holdings amounting nearly $ 5.8 billion by year 2014. Although it suffers heavy outflows in advertising and promotion, it remains strong on earnings and revenue results. The company is characterized to the increased profitability to its branches in various countries and
Saturday, August 24, 2019
The internal physical surroundings of a retail outlet have important Essay
The internal physical surroundings of a retail outlet have important implications for building store image and influencing consu - Essay Example In-Store Environment Physical environment of the retail stores play a crucial role in influencing consumer behaviors and provide the retail stores with an ability to create un-rivaled image particularly in service businesses. Additionally, retailers rely heavily on store atmosphere as it prolongs the time consumer spend in the store and increases impulse buying of the consumer. More importantly, enhancing the store atmosphere is the last option for the retailers in terms of gaining competitive advantage (Blackwell, Miniard, and Engel, 2006). A store environment can be best defined as an external stimulus that attracts individuals on personal level. The in-store environment includes cues, messages and suggestions for the customers to gain their attention so that they can spend quality time at the store. Retailers are provided with variety of benefits through effective and breathtaking in-store environment due to which they tend to design store environment that significantly enhances c onsumerââ¬â¢s positive feelings and motivation to purchase or stay longer in the retail store (Yoh, 2000). On the other hand, physical environment can be distributed into three categories. ... Providing the customers to move freely in the store significantly influences the customers to frequently visit the store to satisfy the personal needs and wants. Signs, Symbols and Artifacts Communication with the customers in the store is quite essential. Communication either through direct medium or indirect medium can motivate the customers to stay longer at the retail store. Moreover, decoration and design of the signboards creates a positive image in the mind of the customers. Another classification of environmental factors is as follow (Mowen and Minor, 1997): Ambient Cues The ambient cues have significant impacts on potential customers as it includes attributes such as temperature, music, noise and lighting. Design Cues The design cues give rise to aesthetic feelings of the customers as it includes style, layout and architecture of the retail store. Social Cues Such cues relate to factors such as employees and the customers. The ability to provide the customers with effective and interactive employees can significantly motivate the customers through high quality service. Nature and Importance of In-Store Environment In the 21st century, providing the customers with unique and special retail environment has become a necessity for organization to enhance its differentiation from other retailers. This significantly provides the retail outlets with an ability to bind customers through the un-rivaled experience. Indeed, the retail outlets are showing interest in the design of outlets so that the outlet can create an experience that would lead to consumer purchasing behavior. Moreover, the design and the environment of the retail outlets are the two most prominent factors for
Friday, August 23, 2019
Ethical Theories and Principles in Healthcare Essay
Ethical Theories and Principles in Healthcare - Essay Example Religious beliefs may go against this, but people must understand that sometimes it becomes crucial for the physicians to make the patient die with dignity and peace rather than leave him die in distress. This way, personal standards and personal beliefs of the physicians, at times, conflict with the demands of the patients. I believe that informed consent is an important ethical consideration that is about having the capable patient take part in making decisions about his healthcare and treatment process (Wear, 1992). . Confidentiality is also a crucial ethical issue, which must be maintained between patient and the physician during decision-making. My views best relate with two ethical frameworks: (1) Deontology, which focuses on that physicians should stick to their responsibilities when they are facing a dilemma in making ethical decisions. This will help them to make consistent decisions while adhering to their ethical obligations. (2) Utilitarianism, a theory that helps the phy sician in making choices whose consequences are better for the patient. He will make a decision that will yield greatest benefit to all
Income statement Coursework Example | Topics and Well Written Essays - 1000 words
Income statement - Coursework Example The revenue of a business also reflects the performance of its management. Thus, revenue is quite significant in assessing the present and future value of the business as a whole. Due to such importance of revenue in the business environment, steps have been taken by all the accounting bodies to ensure that revenues are not overstated in order to depict the financial performance better than it is in reality. Thus, it is established that revenues arising from sale of goods should be recognized only when the entity has transferred the significant risks and rewards associated with the goods to the buyer. The revenue in respect of rendering of services shall be recognized only when the outcome of the transaction through which services are rendered can be measured reliably. Product Expense: The expense incurred by a company in manufacturing a product is a product expense. These include direct materials, direct labour and factory overheads. These expenses become the part of the total cost of the product being produced. Period Expense: The expense incurred by a company during a financial period is a period expense. These expenses are shown in the Income statement in the period in which these are incurred. Examples of such costs are administrative costs, distribution costs, selling costs, rent of head office etc. The matching principle states that the costs incurred for earning revenue should be reported in the same accounting period in which the revenue has been recognized. Thus, where a company is engaged in the business of production and sale of a product, its revenue will be the sale proceeds derived from sale of its produce. However, when sales are recognized in financial statements as revenue, the inventory used in the production of finished goods sold shall also be recognized as cost of sales in the same period in order to comply with matching concept. Comparing the
Thursday, August 22, 2019
A Climate for Change Essay Example for Free
A Climate for Change Essay General Motors has been through some difficult times the past ten years or so and appears to have learned some hard lessons. Based on these lessons, General Motors has begun to adopt a strategy of restoring profitability to its North American operations, by aggressive marketing, redesigned products, adopting to new Human resource strategy and a profit rather than a market share goal. Since this assignment is on strategic human resource management, I will be concentrating more on GMs Functional Strategy in HR, which played a major role for GMs success. General Motors Human Resource Management Most companies do not view the HR department as a strategic business partner or as an indispensable part of the organisation (Terri Kabachnick, 1999). By analysing executive assessments, they usually show merchandising, finance, or marketing in the top spot when each departments value and contribution to the companys success as perceived by the company are rated. HR inevitably ranks last, coupled with loss prevention. Traditional HR departments within large, multi-national corporations tend to be powerless with the logistics of managing processes across many departments spanning multiple countries. In addition, GM, like other multi-nationals, has multiple HR groups one at the corporate level and additional ones for each business unit within the corporation. These HR groups typically do not have a central repository of information and lack a coordinated communications infrastructure. As a result, the HR processes of large, multi-national corporations generally are redundant and inefficient. In addition, the sheer number of third-party vendors used by an HR department to handle discrete functions makes management of the process challenging. By necessity, these departments predominantly have focused on administrative functions and typically dont have the time or the resources to devote to strategic planning. At the same time, many are facing a dramatic reduction in resources, and cost-cutting efforts primarily have focused on reducing staff, rather than re-engineering service delivery. A Climate for Change: While many businesses flourished during the boom years of the 1990s, GM, like other U.S.-based automakers, struggled to maintain the status quo. During those years, GMs market share continued to shrink as a steady stream of consumers bought cars from its Japanese, German and Korean competitors. When Wagoner took over as president and chief executive officer of GM in 1998, he knew the company had to change its approach to manufacturing and selling cars or it would continue a downward spiral and eventually lose its place as the worlds pre-eminent automaker. Wagoner set into motion an effort to reorganize and rebuild GM from the inside out. One of Wagoners primary objectives was to refocus and revamp the companys HR department. Wagoner thought HR is paramount to GMs reorganisation effort. If they were to hire, train and keep the best workforce possible, then it must have the best and most up-to-date HR practices possible. While the change in HR is just one element of making GM a more globally focused and competitive company, it is a key element. GM has always been a very siloed corporation with all of its different divisions functioning like separate companies. There have been numerous reorganisation efforts at GM, and most have not fared well, because of the turf battles and independent nature of GMs divisions. However, GM appears to be taking a different approach. Focusing on HR and making it a key element in the reorganisation effort, which GM has never really attempted before. One real challenge has been the effects of change on one large organisation which has set itself to comfort,so to get GMs management team to completely buy into the strategic role for HR was a task in itself. Middle management, however, has been a different story, they were more resistant to change than their managers. But, the effort is under way, and senior-level executives are well aware that it is an evolution not a revolution and therefore will take some time. The key to making the evolution work, is to find the points of resistance and to try to make them understand the need for change. And if they continue to resist then personnel changes should be considered.as the cost is quite big to barter. I personally feel that the approach which GM adopted, provides a best fit to its work environment and structure.
Wednesday, August 21, 2019
French Essays Nineteenth Century French Fiction
French Essays Nineteenth Century French Fiction The Representations of Women in Nineteenth Century French Fiction Discuss the representations of women in La Curee (by Zola),Germinie Lacerteux (by Edmond et Jules de Goncourt), La Dame aux Camelias (n.bthe play, not the novel by Dumas fils) and Le Spleen de Paris (by Baudelaire). This research investigates in depth therepresentations of women in such French fiction as La Curà ©e by Emile Zola,Germinie Lacerteux by Edmond and Jules de Goncourt, La Dame aux Camà ©lias by AlexanderDumas the younger and Le Spleen de Paris by Charles Baudelaire. The receivedfindings suggest that in these literary works the writers maintain the ideas ofrealism and naturalism in regard to female characters, rejecting the romanticportrayal of females and stressing on their freedom and sexuality. Somefindings of the dissertation are consistent with the earlier studies of Frenchliterature in the nineteenth century, while other results provide newinterpretations of a female issue. 1 Statement of the problem The representations of women in Frenchliterature of the nineteenth century reflect the writers attempts to providetheir own vision on females in the era of Libertinage, praising theirprinciples of liberty, but implicitly criticising their sexuality and weakness.Contrary to Romantic writers, such authors as Emile Zola, Charles Baudelaire, AlexanderDumas the younger and the Goncourt brothers adhere to the ideas of realism andnaturalism in their portrayals of women, proving that only the observation of differentsides of a persons essence can provide understanding of the reasons behindfemale degradation and failure. In this regard, these writers represent theirfemale characters through social, cultural and familial contexts. 2 Introduction In France the nineteenthcentury was characterised by various social changes that gave rise to theprinciples of libertinage and equality, but also negatively influenced the mostsubordinate group French females. The pleasure became the principal featureof French style of life. In view of these changes French fiction of thenineteenth century was divided into four literary movements: naturalism,symbolism, romanticism and realism. Although the currents differed from eachother, they stressed on the importance of a person and the rejection of purereason and social standards. Following these movements, French writers started todiscuss a female issue through their female characters, uncovering such negativesocial phenomena as female subjugation, divorce, prostitution, psychologicaldisorders of women and depopulation. In particular, they revealed that, despitefemales attempts to achieve equality with males, society continued to impose certainsocial norms and stereotypes on women, depriving th em of the possibility tofollow their own paths. A woman who worked as a prostitute or a servant wasusually regarded as a subject, a person of secondary importance in patriarchalFrench world, but it was this female who was often portrayed innineteenth-century fiction. The aim of thisdissertation is to discuss the representations of females in La Curà ©e by EmileZola, Germinie Lacerteux by Edmond and Jules de Goncourt, La Dame aux Camà ©liasby Alexander Dumas the younger and Le Spleen de Paris by Charles Baudelaire.The paper is divided into several chapters. Chapter 1 provides a statement ofthe problem that reveals the core of the analysis. Chapter 2 reflects a generaloverview of the issue, observing the social and historical contexts of theperiod when the discussed works are written. Chapter 3 evaluates some criticalanalyses of nineteenth-century French fiction. Chapter 4 demonstrates thetheoretical research methods that are utilised in the research. Chapter 5investigates in depth the representations of women in each novel, focusing onboth principal and secondary female characters. Chapter 6 summarises thereceived results, and Chapter 7 points at the limitations of the dissertation andproposes some suggestions for further research of Zola, Edmon d and Jules deGoncourt, Dumas the younger, and Baudelaire. 3 Review of the literature Nineteenth-century French literatureattracts attentions of various critics who provide rather contradictoryviewpoints on literary works of French writers. This can be explained by thefact that in the period of the French Revolution and Libertinage, Frenchliterature began to move away from the traditional portrayals of characters to themore realistic representations. As Desmarais puts it, all the writers of the19th century are more or less romantic; but none of them could bedescribed as traditional. Introducing innovative elements intotheir literary works, these French writers made attempts to either uncoverdifferent sides of reality or to contrast the nineteenth century with the past.For instance, analysing the literary legacy of Edmond and Jules de Goncourt, ElisabethBadinter cites words of Juliette Adam who claims that the Goncourts so lovedand frequented eighteenth-century women that they despised the women of thenineteenth, consigning them to wickedness, debauchery or imbecility. Charles Baudelairescollection of prose texts La Spleen de Paris was published only after his deathand the critics paid no attention to this literary masterpiece; only at thebeginning of the twentieth century Baudelaires work was acknowledged as one ofthe best prose fiction. In particular, Robert Kopp draws a parallel between LaSpleen de Paris and Baudelaires poetry, pointing at the fact that these prosetexts reflect the themes raised in the majority of Baudelaires poems.Emile Zolas novel La Curà ©e was exposed to censure since its publication, butat the end of the twentieth century it was praised by modern critics as asplendid literary work of naturalism. Contrary to Zola and Baudelaire, the playLa Dame aux Camà ©lias by Dumas the younger was accepted by French audience ofthe nineteenth century with delight, and its principal character Marguerite becamethe prototype of many female characters in films, plays and musicals. One ofthe most famous opera produced on Dumas play was Verdis La Traviata. 4 Research methodology The research in this dissertation isconducted, utilising a social constructionist approach and a feminist approach.Applying to these methods, the paper analyses the representations of women fromdifferent perspectives and interpretations. The social constructionist approachuncovers the impact of society on the formation of women and its attitudetowards those females who reject the existing stereotypes. Thus, this method iscrucial for investigating the portrayal of women in French fiction. Anotherappropriate method is the feminist approach that is aimed at observing genderissues in literature, criticising patriarchal society that specifically createsthe differences between men and women and imposes specific roles on women. Asfemales have been usually conformed to certain stereotypes in literature, thefeminist approach makes an attempt to destroy these stereotypicalrepresentations. In this regard, both approaches analyse the portrayal of femalesin nineteenth-century French fiction throu gh social contexts. 5 Discussion 5.1. Naturalism of La Curà ©e by EmileZola Emile Zola belongs tothose writers who in their literary work present the characters that areclosely connected with their environment. In the novel La Curà ©e Zola reflectsfemale characters through social contexts, demonstrating the impact of theenvironment on them. Thus, the writer is more interested in the temperaments ofhis women rather than in other aspects of their personalities. Zola considersthat female temperaments can explain their emotions and actions, theirrelations with other people and their attitudes to the world, in which theylive. In La Curà ©e female characters are greatly influenced by the events of theSecond Empire and the changes that Baron Haussmann introduced in Paris. As a resultof these changes, Zolas women are in search of pleasure and money. After thedeath of Aristide Rougons wife, the character is left with two children anddecides to marry a wealthy female Renà ©e Beraud de Chatel, transforming his nameinto Aristide Saccard. Their marriageprovides Aristide with financial security, but this marriage of conveniencesproves to be unfortunate for the principal female character that is finallyleft without means of subsistence and a family. Renà ©e looses her childrenduring pregnancy and becomes engaged in various sexual intercourses. At firstshe initiates the relations with Saccards son, until he marries anotherwealthy but very ill woman Louise who dies soon after the marriage. Thus, Zolacreates two male characters a father and a son who marry women withdisabilities for money, because they do not have another way to enrichthemselves. But Zola doesnt consider that these men are responsible for femalesfailure. Renà ©e is portrayed as a woman who constantly suffers from neuroticattacks and devotes her life to balls, talks and sexual pleasures. Renà ©eappears to be a product of French patriarchal society that puts a woman into asubordinate position, destroying her self and making her suffer from ownweakness. According to thefeminist approach, such subjugation results in negative consequences for awoman, because she starts to substitute one extreme for another. Inother words, a woman turns from excessive subordination to uncontrollablefreedom. Before her marriage to Aristide, Renà ©e gets pregnant and is abandonedby one of her lovers, and Aristide appears to be a rescue for womansreputation. This female character is portrayed as a simple sensualist who findsreal pleasure in social life and sexual relations. When she meets Aristidesson Maxime, a young teenager who greatly resembles her, she becomes his lover. Althoughthe writer implicitly criticises Renà ©e, he constantly points at the fact thatit is French society that shapes this female who finally destroys not onlyherself, but also people around her. Renà ©e is against Maximes marriage toLouise, considering her to be a weak and ugly girl. She is not able to realisethe power of money for such people as Maxime and Aristide; she is used to spendmuch money and she regards it only as means that help her exist in Frenchsociety. Renà ©e is emotionally involved into the affairs with Maxime and sheutilises this young person for her own pleasures. This female is amazed bythese forbidden relations and doesnt want to think about the consequences ofher action. In the characterof Renà ©e, the writer embodies the essence of Parisian life; similar to Paris,Renà ©e is obsessed with luxury and pleasures, but behind this gorgeousappearance there are degradation and suffering. This female character reflectsreality of the nineteenth century when people run to certain extremes and werefurther destroyed by these extremes. Renà ©es wrong ideals are a result of herlack of appropriate education and social permissiveness that deprive a youngwoman of creating a normal family with loving husband and children. By the endof the narration Renà ©e is completely destroyed by her obsession with pleasure;but Zola observes her weakness and foolishness through the social pressure thatshe is not able to withstand. As Zola puts it, she had slid down a slipperyslope, yet she had not remained passive the whole way down. Desire had awakenedin her too late to combat it, after the fall had become ineluctable. The same regardsthe secondary female character of the novel Angà ¨le, the first wife ofAristide. She is also portrayed as a weak, passive and unhealthy female who isnot able to endure life in Paris. Contrary to Renà ©e, Angà ¨le is not involvedeither in social life of Paris or in sexual relations because of her povertyand poor health, but her submissiveness is also formed by society, in which shelives. As Zola claims, To be poor in Paris is to be poor twice over. Angà ¨leaccepted misery with the passivity of the anemic woman she was. She spent herdays either in the kitchen or lying on the floor playing with her daughter.Angà ¨le is really devoted to her husband and children and refuses to be isolatedfrom young Clotilde when Aristide decides to move to Paris. However, Paris, thecity of changes in nineteenth century France, requires changes in individualsas well. Those people who fail to adjust to these changes are destroyed, thatis just the case with Angà ¨le. Aristides firstwife appears too kind and weak, the features that do not allow her to survivein the cruel and degrading Parisian world; however, such characters as MmeSidonie, a sister of Aristide, is aware of the role of money in Paris. Zolaportrays this secondary character as a person who eliminates her emotions andinstead applies to pure reason. When Sidonie visits a dying Angà ¨le, shecompletely ignores any morality or decency in her talk with Aristide: She wasa good woman, his sister continued, speaking as though Angà ¨le were alreadydead. You can find women who are wealthier. Zola criticises suchfemale scorn, implicitly demonstrating that Paris destroys the souls of womenand makes them act, like machines, without any emotions and feelings. Thisrealistic portrayal reflects the negative impact of certain social norms onindividuals. Sidonie is used to interfere into the lives of other people anddecide their fates. Therefore, in his representations of women Emile Zolastresses on t he fact that power and wealth deprave females in France, butsimultaneously he contrasts these mean women with such good females as Angà ¨leand Cà ©leste. As the writer describes, Cà ©lestes devotion pleased Renà ©e all themore because she knew her to be honest and thrifty, a woman without a lover anduntouched by vice. 5.2. Misogyny in Germinie Lacerteux Similar to Zola, Edmondand Jules de Goncourt in their literary work Germinie Lacerteux create thefemale characters that reflect the ideals of femininity existed in Frenchsociety in the nineteenth century. Although their women reveal certain liberty,they are too preoccupied with their own sexuality. Through their femalecharacters the Goncourt brothers reflect their misogynistic vision of femaleswho are not able to suppress their sexual desires and who become the slaves oftheir natural instincts. Throughout the narration Edmond and Jules de Goncourtexpress their longing for eighteenth-century females with their refinedappearances, exquisite manners and flirtation; they long for the period ofstrong aesthetic values and cultivated morality. Thus, their female charactersare usually portrayed as depraved females who end tragically because of theirweakness, poor education and lack of intelligence. GerminieLacerteux, the principal female character, is a woman who is sexually abused inearly years and who is not able to marry when she comes to Paris. However, hermotherly instincts are too powerful and she starts to look after a niece andanother child Jupillon. But when Jupillon is transformed into a man, Germinieexperiences a sudden passion towards him, and it is this passion that destroysher reputation and turns into poverty, because the love had been for theJupillon young person only the satisfaction of a certain curiosity of the evil,seeking in the knowledge and in the possession of a woman the right and thepleasure of scorning it. When Jupillon abandons Germinie, shestarts drinking and is involved in numerous sexual intercourses that bring herto death, similar to Dumas Marguerite and Zolas Renà ©e. In this regard, Edmondand Jules de Goncourt uncover female passion that can gradually destroy a womanand depreciate her, criticising Germinies uncontrollable sexual desires andins tead maintaining the ideas of female virginity. As Jupillon tells Germinieduring one of their talks, you appear yourself well still, you are not myheart, you are not my life, you are only my pleasure. Contrary toother French writers of the nineteenth century that mainly portray females fromthe upper-class society, the principal female characters of Edmond and Jules deGoncourt belong to the middle-class. Such shift from aristocratic females topoor females reflects great realism of the narration, eliminating romanticismthat is usually utilised in French novels. The Goncourts naturalism explainsthe reasons of female sexuality and their further failure. According to the writers,it is really difficult for such a woman as Germinie to suppress her naturalinstincts and adhere to social morality that rejects any powerful emotions.Such females make attempts to change their conditions of living, but finallythey appear in the similar conditions as at the initial stage of life. TheGoncourts present this viewpoint not only on the example of Germinie, but alsoon the example of a secondary character Miss de Varandeuil, an old kindspinster who hires Germinie as a servant to her and who becomes ful ly attachedto a young girl. As Edmond and Jules de Goncourt put it, This old womanisolated and forgotten by death, only at the end of her life, trailing heraffections of tomb in tomb, had found her last friend in her servant. However, suchclose relations between a master and a servant are not unusual fornineteenth-century French literature that usually reflects female servants asdevoted and hardworking people who gradually occupy the principal place in thenarration. Despite their different social positions, Germinie and Miss deVarandeuil finish their lives in loneliness, with the only difference thatGerminie doesnt suppress her sexual desires, while Miss de Varandeuil isolatesherself from the rest of the world, as well as from her powerful emotions.According to the social constructionist approach, a woman is created bysociety, in which she lives; thus, her sexual behaviour is also formed by theenvironment. In this regard, the differences in sexual desires ofGerminie and Miss de Varandeuil can be explained by their different backgroundsand upbringing. Miss de Varandeuil is the representative of a brokenaristocratic family that loses its fortune during the French Revolution, whileGerminie comes from a middl e-class society that adheres to easier manners. 5.3. Realism of La Dame aux Camà ©lias The play of Dumas theyounger La Dame aux Camà ©lias portrays a beautiful prostitute Marguerite Gautierwho breaks the relations with her lover, Armand Duval, to improve hisreputation and soon dies of her incurable illness. In this female character thewriter embodies his lover Marie Duplessis who died at the age of twenty-three. Dumaspresents Marguerite as a romantic woman, despite the fact that her real lifewas not so romanticised. At the end of the play Marguerite claims that she haslived for love and she doesnt hesitate to die for love. By applying to suchtragic end, Dumas uncovers the social system of his times, when a woman fromthe middle-class couldnt be engaged in the relations with a male of the upper-class,or otherwise she could destroy his life and reputation. On the exampleof this character Dumas the younger reflects womans degradation, but Margueritesdeath as a result of illness evokes sympathy towards her. Marguerite saves notonly Armand, but also his sister who at last receives an opportunity to occupyan appropriate position in upper-class society. In this regard, a life of onefemale is sacrificed for the sake of another woman, although Marguerite ispresented as an unusual female with many virtues. She is not only beautiful,but is also intelligent and noble. In the play Dumas the younger portraysMarguerite as a person with a slender figure, white face and dark hair. She hasamazingly bright eyes, full lips and unusually white teeth. She possesses agood taste in her dresses, in music, in art and behaves in a noble way. But,above all, this courtesan has a big heart, expressing sympathy andunderstanding towards other people. As Dumas describes her, There was a kindof candour in this woman. You could see she was still in the virginity of vi ce.No wonder that Armand falls in love with Marguerite from the first sight;however, this popular French prostitute has never loved before she meetsArmand. As Armand tells the truth about his feelings towards her, Margueritelaughs at him, but he gradually persuades her in his love, and she returns hisaffection. When Armand speaks with his father, he says, Perhaps I am in thewrong, but I can only be happy as long as I am the lover of this woman. However, whenMarguerite finds out that she is ill, she realises that her past has deprivedher of future. Although noble people in nineteenth-century France were usuallyengaged in sexual relations with prostitutes, and these relations were regardedas natural, the situation was different in regard to love. The relations basedon love were fully prohibited by upper-class society, and an aristocratcouldnt love or marry a prostitute, because such action would destroy him.Marguerite has no choice, but to destroy the relations with her lover in themost complex period of her life. Dumas the younger reveals that Frencharistocratic society creates certain social norms; those persons who try tooppose to them, are excluded from society. Thus, Marguerite appears to be avictim of these social norms, as she is engaged in illicit sexual relationswith men. As these relations are concealed, they are ignored by society, butwhen they are exposed, they destroy the reputation of a person who belongs tothe upper-class. Marguerite realises that her bad reputation threatens not onlyArmand, but his family as well, and she decides to break her relations with theonly person she truly loves. Such actiondemonstrates that Marguerite is better than females of the upper-class, becauseshe understands her responsibility. Marguerite creates her own existence, but,as the writer puts it, Do not let us despise the woman who is neither mother,sister, maid, nor wife. Although this female character has neverbelieved in love and has utilised males for her own benefits, the relationswith Armand change her. Marguerite doesnt want to destroy Armands life, as shehas destroyed her own. As she tells him, your family would cast you off if youwere to live with a woman like me. Let us be friends, good friends, but nomore. Despite the fact that Marguerite takes this seriousdecision because of her sincere love to Armand, Dumas the youngersimultaneously shows that she adheres to the demands of French society.Marguerite is used to act independently, but in this particular case shedecides to reveal her subjection to society. In this regard, the writer provesthat the principles of Libertinage that w ere established in France in theeighteenth century were attributed only to males, while females were punishedfor any display of independence. In the case ofMarguerite, this female is first punished for her illegal sexual intercoursesand further for her love to Armand, the representative of the upper-class. Throughouther life Marguerite has collided with many obstacles and has successfullyovercome them. But she fails to defend her love against social prejudices.Contrasting Marguerite with females of the upper-class, Dumas the younguncovers the degradation of French society that rejects emotions and insteadadheres to the failed morality. When Marguerite abandons Armand without anyexplanation, he constantly humiliates her during their meetings. As Margueritefeels that her illness progresses, she comes to Armand one more time and she cantsuppress her desires. But Marguerite understands that she has to leave Armandwho is unaware of true reasons behind her escape. As a result, Armand destroysMarguerite during the ball by publicly giving money to her. After suchhumiliation Marguerite looses her friends and clients and dies in po verty andloneliness. In prologue Marguerites lover receives her letter and realises thetrue virtues of this beautiful and intelligent female. As Dumas claims, Margueritewas a pretty woman; but though the life of such women makes sensation enough,their death makes very little. In real lifeMarie Duplessie greatly influenced Dumas the younger, but it is he whoabandoned her, realising that he didnt have enough money to support this richcourtesan. However, as Dumas became more involved into the life of Frenchsociety, he began to observe the social attitude towards courtesans and decidedto reflect this attitude in his play La Dame aux Camà ©lias. Through the characterof Marguerite the writer reveals his own opinion of a female. He portrays abeautiful and intelligent woman, providing her with many virtues and love, butsimultaneously depriving her of the possibility to marry a person she lovesbecause of her bad reputation. When after their prolonged parting Armand asksMarguerite, whether she is happy, she answers: Have I the face of a happywoman, Armand? Do not mock my sorrow, you, who know better than any one whatits cause and its depth are. Thus, Dumas the younger implicitlydemonstrates that ideal love relations can be established only between a virginand a ma n with sexual experience. At the same timeDumas regards close relations between opposite sexes as a battle. AlthoughMarguerite has a kind heart and sincerely falls in love with Armand, she is nota virgin and is not able to fully belong to one man, with all her heart, bodyand soul. On the one hand, Dumas the younger reveals that a prostitute may be abetter woman than a virgin, but, on the other hand, he rises againstprostitution that transforms women into the subjects and deprives them of thepossibility to become good mothers and wives. According to the socialconstructionist approach, it was natural for a man of the nineteenth century toestablish sexual relations with different women, but women had to adhere tostrict social norms. In the play Dumas shows that the marriage with aprostitute is equated with a crime, but Marguerite redeems her reputation. Butsuch prostitutes, with a heart, were infrequent in Dumas time, although someof his secondary female characters are also beautiful and intelligent. Forinstance , he introduces M de N. into his narration, a prostitute and anacquaintance of Marguerite. As the writer characterises her, the man who wasthe lover of such a woman might well be as proud as M. de N., and she wasbeautiful enough to inspire a passion. When Armand utilises herto revenge Marguerite, she reveals an unusual intelligence when she claims,you love Marguerite, and you want to have revenge upon her by becoming mylover. You dont deceive a woman like me, my dear friend. 5.4. Ambiguity of Le Spleen deParis by Baudelaire Similar to Emile Zola,Baudelaire reveals his female characters through social environment; this isespecially obvious in his collection of prose texts Le Spleen de Paris, wherehe shows an impact of Paris on women. When Baudelaire arrived to Paris, he hadto live in various parts of the city, observing the life of women in theseplaces. In the text The Despair of the Old Woman, the writer reflects hissympathy to an aged female who experiences great despair, as she sees a childand wants to smile at him, but the child is afraid of this old woman who doesnthave hair and teeth. This lonely woman is horrified by such attitude and shecries: Ah! For us, unhappy female old women, the age passed to like, even withthe innocent ones, and we make horror with the little children that we want tolike. Baudelaireregards such women as victims of life who symbolise loneliness and misery. Applyingto such horror portrayals, the poet implicitly criticises those women who areobsessed with their material well-being, ignoring the reality and the beauty ofthe world around them. In Le Spleen de Paris Baudelaire draws a parallelbetween one woman and another, as well as between a man and a woman. In thetext The Wild Woman and the Small Mistress the poet presents a dialogue betweentwo females, uncovering their views on life. Though both persons belong to onesex, they are different, as the wild woman describes a mistress, you whichrest only on fabrics as soft as your skin, which eat only cooked meat, and forwhich a skilful servant takes care to cut out the pieces. Suchportrayal reveals the poets double vision, his attempts to evaluate varioussides of peoples consciousness. But Baudelaireis especially sympathetic to widows and old females who are forgotten andneglected by society. In his text Widows the poet provides a detailed portrayalof widows in the parks, claiming that it is easy to recognize them,because each widow reflects loneliness, pain and isolation. Baudelaireintensifies their misery by contrasting these lonely and poor widows withwealthy and idle people who walk in the park: It is always somethinginteresting that this reflection of the joy of the rich person at the retina ofpoor. These reflections show the ability of Baudelaire forobservations and his understanding of a female essence. In his text BeautifulDorothà ©e the poet describes a beautiful Dorothà ©e strong and proud like thesun who walks along the street, bare-footed, and smiles. Perhaps,Baudelaire ponders, she goes to a young officer to talk with him, thats whyshe is so delighted. Such is the image that the girl creates for the rest ofthe world, but no one knows that she gathers each piaster to redeem her littlesister. In another prose poem Which is the true one Baudelaire reveals thestory of a beautiful and unusual girl Bà ©nà ©dicta who is portrayed by the poet asideal. But as he claims, this miraculous girl was too beautiful to live a longtime and she dies very young. Baudelaire realises that femalebeauty and youth are temporary, and many good women die at an early age. In the textPortraits of Mistresses the poet describes four males who talk about theirmistresses, implicitly uncovering their inability to accept femaleindependence. According to the feminist approach, female characters are usuallyportrayed from two different perspectives: either as chaste wives, if theyadhere to the standards of patriarchal society, or as mistresses, if theyreject social rules and stereotypes. However, in La Spleen deParis Baudelaire reveals that such attitude is also aggravated by class andeconomic differences. 6 Conclusions The dissertation has analysed therepresentations of women in La Curà ©e by Zola, Germinie Lacerteux by Edmond and Julesde Goncourt, La Dame aux Camà ©lias by Dumas and Le Spleen de Paris byBaudelaire. In these works the portrayal of females reflects complex socialstereotypes and norms existed in French society. In the play La Dame aux Camà ©liasDumas the younger reveals that French aristocracy was engaged in sexualrelations with courtesans, but, as these relations became a threat to theirreputation, they destroyed any intercourse with their lovers. On the example ofthe principal female character the prostitute Marguerite Gautier the writerdemonstrates that a woman of a low social position with a reputation of aprostitute has no chances for better future, even if she possesses many virtuesand beauty. Although Marguerite sincerely falls in love with Armand Duval, sherealises that their relations destroy not only Armand, but his family as well.Suffering from an incurable illness, M arguerite nevertheless decides to abandonher lover for his sake. Thus, Dumas the younger proves that independent andintelligent females collide with many restrictions and stereotypes inpatriarchal world. The libertine ideas that were proclaimed throughout Francein the eighteenth century were mainly maintained by males, while womencontinued to occupy inferior position to men. Such female oppression wasaggravated by social biases of the upper-class towards people of themiddle-class, the biases that were mainly based on economical differencesbetween two classes. In GerminieLacerteux Edmond and Jules de Goncourt provide a misogynistic vision onfemales, trying to prove that women are too preoccupied with sexuality andsocial position. Similar to Dumas Marguerite, the Goncourts principal femalecharacter also belongs to the middle-class society and who is destroyed by herpassion to a young male. Following the principles of naturalism, the Goncourtsobserve a female from biological and social perspectives. Emile Zola goesfurther; in his novel La Curà ©e the writer reveals that social environmentshapes
Tuesday, August 20, 2019
Importance of Outsourcing of Logistics Function
Importance of Outsourcing of Logistics Function Outsourcing and 3PL, as important business functions, have drawn attention of business operators as well as academic and scholars. A large number of studies have analyzed these areas from a theoretical perspective and a practical point of view. This section will start with the review of outsourcing regarding its definition and importance as well as motivations and concerns. Then, based on the correlation between outsourcing and 3PL, the section presents the concepts of 3PL and most challenges 3PL providers are facing. Lastly, the section shows what could be the current situation of Chinas 3PL industry. Outsourcing of logistics function 2.1.1 Definition and importance Razzaque and Sheng (1998) defined outsourcing as multiple logistics services provided by a single vendor on a contractual basis. Outsourcing is becoming more important today. Due to economic and competitive pressures, it is imperative for different enterprises to pay attention to their core competencies and turn to third-parties to undertake responsibility for other secondary corporate functions. Outsourcing can create profits by improving customer service level, providing high added-value to products, benefiting in exploiting new markets, and offering dedicated resources (Foster and Muller, 1990). By means of outsourcing, companies can obtain competitive advantage through cost reduction and increased responsiveness to market change. Motivation of outsourcing Several reasons lead private business as well as government agencies to outsource logistics functions: Avoid Capital expenditures It reduces capital investment in facilities (Richardson, 1995). This allows the using firm to spending where it can get the best return as in research, manufacturing, marketing, or other functions core to the organization. Increase flexibility This can enable firms to focus on the core business, question any function or department that is not producing revenue and adapt to changes in the market and access to leading edge technology. A third-party will be invited to help a company when demand increase dramatically beyond the capability of the company to fulfill (Razzaque and Sheng, 1998). Many 3PL providers specialize in logistics functions such as transportation, warehousing management and information technology. Cost savings To save costs is identified by most literature as one of the most popular reasons for why outsourcing occurs. In principle, outsourcing will occur to companies for cost reduction when their suppliers offer a service for a low price which however still can cover added overhead, profit, and transaction costs (Harler, 2000). Those companies which outsource their logistics functions to 3PL service providers usually agree that it is more cost saving than to fulfill the same logistics task in-house (Candler, 1994). According to Bradley (1995a), there are some other reasons of logistics outsourcing such as improving service level and customer satisfaction, using 3PL providers logistics IT systems, acquiring outside sophisticated professionals, combining service and minifying number of suppliers, integrating the process of supply chain, and increasing productivity. Concerns of outsourcing Despite the fact that outsourcing is now favored by most organizations, there are still many recognized potential barriers and problems related to outsourcing. Normally the most mentioned reservation which restrains enterprises from employing 3PL service providers is loss of control of 3PLs (Richardson, 1993a). Such tendency can be caused by different objectives and attitudes of the logistics service providers and users towards strategy, profits and service or skills (Axelrod, 2004, p49). The adoption of outsourcing might also lead to a situation in which critical knowledge associated with process and customers would leak to potential competitors (Jennings, 2002). Moreover, unrealized savings with a potential for increased costs, employee moral problems, losing touch with important information, unreliable promises of the providers, their inability to respond to changing requirements have been mentioned as potential risks as well. Each of these concerns should be recognized carefully by organizations that intend to outsource their logistics function, otherwise contract logistics can be another issue to deal with, rather than a catalyst or improvement (Razzaque and Sheng, 1998). Third-Party Logistics 2.2.1 Concept of 3PL Third party logistics service has been described in a few ways, including outsourcing of one single service such as transportation, and outsourcing of a set of complicated processs (Vasiliauskas Barysiene, 2008). Generally, 3PL provide not only just separate warehouse or transport functions but also multiple, bundled services (Leahy et al., 1995). It is also worth mentioned that freight forwarders and shipping lines are included in broad definitions of the 3PL industry (Rao and Young, 1994). On the basis of above definitions, Leib et al. (1993) used the following definition: Third-party logistics involves the use of external companies to perform logistics functions that have traditionally been performed within an organization. The functions performed by the third party can encompass the entire logistics process or selected activities within that process. The authors refer to the 3PL as a new industry and growing business environment has more expectations on 3PL. The usage of 3PL has been considered as logistics alliances at strategic level. Bagchi and Virum (1996, p.193) have developed the following definitions: A logistics alliance indicates a close and long-term, relationship between a customer and a provider encompassing the delivery of a wide array of logistics needs. In a logistics alliance, the parties ideally consider each other as partners. They collaborate in understanding and defining the customers logistics need. Both partners participate in designing and developing logistics solutions and measuring performance. The goal of the relationship is to develop a win-win arrangement. Compared with the prior definition, which focuses on the logistics functional activities, the final one emphasizes the duration of the relationship between the logistics service provider and user, and also covers an extensive range of promising logistics services (Halldorsson Larsen, 2004). Many articles have disclosed that 3PL industry has progressed steadily for ages (Liu, 2008). 3PL providers started as a traditional transportation or warehousing service providers from 1980s. Nowadays, 3PL companies provide a variety services including basis logistics service as well as value added services. Main challenges to 3PL service providers As the 3PL industry has continued to evolve, the 3PL provider, sitting in the middle between the manufacturers or suppliers (the buyers of the 3PL service, known as shippers) and the end customers (the consumer of the products), will need to balance the dynamic pulls generated by upstream and downstream entities, and thus faces challenges are unique to its position. Financial issues Although 3PL providers should develop skills, improve competencies, and provide more value-added service so as to survive and expand business successfully in this flourishing market, the main challenge for them is how to obtain business and achieve acceptable financial performance. Maintain profits under price pressures from customers The economic crisis has caused serious situations for both 3PL users and providers -82 percent of shippers now are implementing cost-cutting strategies and 60 percents are reconsidering their supply chain and relationships with 3PLs accordingly (Capgemini Consulting et al, 2009). As a matter fact, economic factor is a strong motivation for outsourcing, of which cost reduction and cost saving are the main concerns. One of the most significant motivations for outsourcing logistics functions to third parties is their professional knowledge and valuable experience in logistics industry which are costly for their customers to have in-house (Byrne, 1993). However, the decision of employing 3PL providers is usually influenced by the evaluation of cost/service trade-offs (Selviaridis and Spring, 2007). Hence, no matter what strategic stances the logistics providers take, they have to keep upgrading and improving their operational potentialities in the business environment (Sum Teo, 1999). Meanwhile, as price competition is inevitable and most customers are also price sensitive at present, 3PL providers still need to be cost conscious to achieve higher margins, and to prevent themselves from being priced out of the market. Financial stability Many articles have placed emphasis on financial firmness as a critical essential for logistics providers (Bottani Rizzi, 2006). Based on the empirical survey conducted by Boyson et al. (1999) financial stability was ranked as the most significant selection criteria for choosing 3PL providers because it reduce the risk in relationship. A 3PL services provider with stable financial standing can not only better satisfy its clients and implement cost reduction through a dedicated resource, but also diminish risks for logistics partners (Bowersox Daugherty, 1990). Accordingly, Boyson et al. (1999) assert that firms prefer providers demonstrating outstanding customer service level with low price and possessing solid financial stability. Nevertheless, the financial tsunami which has weighted down the world economy has resulted in steep decreasing in logistics demand with no doubt. On the one hand, according to Li Fung Research Center (2009), the clients of the logistics enterprises asked for price cut and longer credit term, and it is difficult for them to collect the payments form clients during such hard times. Bad debts and financial losses will be easily incurred by any imprudent credit management. On the other hand, the confidence for the banks to lend had been damaged by the tsunami. Banks are now only willing to provide loans to selected enterprises or projects, which limits the financing options of the logistics enterprises (Li Fung Research Center, 2009). Clearly, it has always been important for 3PL providers to maintain a sound financial condition to survive in the recession as well as to rise superior to others in the market. Information technology (IT) Capability of information technology IT-based logistics services is considered as significant factor by 88% of shippers, but only less than half (42%) of the shippers are satisfied with the IT capableness of their providers (Capgemini Consulting et al, 2009). Accordingly, such IT capability gap result in a few difficulties for both shippers and 3PLs to collaborate in an adaptive supply chain (Capgemini Consulting et al, 2009). Information is one of the most important elements in logistics management (Cheong, 2004) and it is definitely essential to assist logistics process with effective IT (LaLonde and Masters, 1994). IT capability can be enhanced by employing advanced software, such as electronic data interchange (EDI) networking, enterprise resource planning environments, simulation software, vehicle routing packages, carrier loading optimization tools, etc. (Qureshi et al, 2008). Hardware also may be utilized to facilitate operations and to increase the production efficiency, including radio frequency devices, servers, bar code printers and scanners, global positioning system (GPS), networking and internet/intranet connections, satellite tracking devices, etc. (Qureshi et al, 2008). 3PL services providers which adopt tracking and tracing devices can grant better services to users with quick responsiveness (Rahman, 2004). According to Byrne (1993), the need of sophisticated information technology is impe rative for logistics management to link members like manufacturer, carrier and customer in the supply chain. Sauvage (2003) proposed that to fully satisfy the variety of customers demand, LSPs should continuously employ advanced information technologies in order to enhance their service performance. It is unlikely for a firm which is lagging in a technology to move to a position of leadership (Jennings, 2002). Security of information systems The sharing of so much information inevitably leads to security concerns. It can not be denied that logistics service providers usually still lose customers annually due to issues of trust in privacy and security, though they keep attracting new clients (Pattel Conners, 2008). One possible mentioned security issue is that when a 3PL provider has to serve several direct competitors, the information in relation to all of them should be kept confidential (Grover et al., 1994, p. 38; Lacity and Hirschheim, 1993a, p. 24). Other than cost, security and privacy are also considered as major concerns by many companies when outsourcing. Compatibility of information systems IT compatibility acts an essential role in logistics activities such as forecasting, order purchasing, inventory replenishment and life cycle management (Anand, 2010). According to Arshinder et al. (2007), the information system of the whole supply chain is expected to be compatible. A compatible information system means comprehensible data are quickly shared among the parties throughout the supply chain (Arshinder et al, 2007) while incompatibility will lead to costly and time consuming process because information, though can be shared as well, is rarely in synchronization. At present, it is difficult for information to seamlessly flow throughout the network as international logistics often includes some different transportation modes and carriers. Moreover, there are diverse IT systems in the different trading areas. For example, Europe adopts Administration, Commerce and Transportation (EDIFACT) standards for EDI systems while the US follows the standards of the American National Standards Institute (Rao Young, 1994). These difficulties in global supply chain have challenged 3PLs regarding how to capitalize the gap to provide a distinct competitive advantage. Reliability of information systems As one of the major industry focus in the global logistics market, the field of information systems paid special attention to user satisfaction as an important performance measure (Ives and Olson, 1984; Robey and Farrow, 1982). Bailey and Pearson (1983) have pointed out that reliability is one of the critical criteria of customer satisfaction. There could be many unknown increased reliability risk which result from two major sections of technology. One is that new technology innovations or adoptions of 3PL providers may have an unclear reliability performance. The other is that an existing technology may be applied to a new market with unknown increase failure rates (Collins, 2005). To fulfill the promised logistics service reliably and exactly, 3PL providers must identify and remove uncertainty involved with technology reliability performance. Human Resource (HR) Lack of expertise There is a tendency that firms desire to acquire the expertise from third-party logistics providers who possess particular local knowledge of customs and infrastructure of destination countries in such a growing global market (Razzaque Sheng, 1999). Although one of the drivers for companies to outsource is to acquire resources and logistics professionals (Selviaridis Spring, 2007), the results of the research conducted by Georgia Institute of Technology et al. (2009) show that many outsourcing users dont believe that 3PLs are in the capacity of strategic partners currently, 40% of shippers in the survey expect their 3PL service providers to continue focusing on execution, and a good many of them reckon that 3PL providers lack logistics expertise that would support users increasing outsourcing. Often-cited problems range from misunderstanding the demand of customers supply chain to inadequate professionals in given products and markets (Selviaridis Spring, 2007). In fact, customers are looking for 3PL providers that have expertise in multiple phases of the logistics process. An annual surveys of US 3PL firms indicates that company employee/expertise is regarded by CEOs as the most important asset of the company for business success in the competition, however those same CEOs also agree that currently the most critical problem facing 3PL companies as finding qualified people (Leib and Randall, 1996b). Different culture Almost all members in the supply chain, including third party, have their own company culture which is definitely different from each other (Babics, 2005). According to Pagell (2004), the capacity of how to harmonize its own internal culture with the external different cultures of its customers is one significant factor that 3PL providers should note in the integration of operational services in supply chains. Mckeon (1991) states that for both 3PL providers and their customers, understanding each others cultures and organizational structure is an essential factor to ensure a win-win outsourcing. Compatibility of culture and values is one of the keys to successful partnership which can result in long-term partnership (Qureshi et al, 2008). Culture conflicts often result in change orders, unexpected costs, and sometimes a negative impact on relationships (Kremic et al, 2006). In general, the ability of 3PL providers to understand the customer organizations culture is a basis for partnering. Inadequate education and training In order to remain competitive in the logistics market, 3PL providers have to be vigilant and agile to their customers needs, and continually seek to meet customer expectations as much as possible. Logistics executive should be aware that, due to rapid growth in the logistics industry, there could be a shortage of qualified logistics expertise (Yeung, 2006). Therefore, it is necessary for governments and educational services to allocate more resources, put logistics on formal curriculum, and provide more correlated training programs to fulfill the demand of the whole supply chain. The development of logistics, otherwise, might be constrained by lack of trained logistics personnel (Sum Teo, 1999). Ulengin and Uray (1999) indicate that in Turkey, senior management that is void of professional knowledge of logistics is the fundamental factor limiting the progress of logistics industry. Kerr (2005b) describes poor training as a black hole in China because neither the central government nor Chinas regulatory authorities do much to promote logistics training programs. Obviously, a firm with higher quality of human resources such as better education or training will have superior core competence in the market. Hence, it is imperative for 3PL service providers to offer more training programs to employees so that they can cope with competition in the future (Wang et al, 2006) Business Landscapes Globalization of 3PL market delivering service in new geographic regions The internationalization and globalization of 3PL providers has been boosted by the economies of scale and scope, by the internationalization and globalization of the competitors and by customer following i.e. the internationalization of manufacturing firms, which may demand that the service supplier provides a global network and/or global experience (Arvidsson, 1997, p.74). 3PL providers that take charge of their customers outsourced logistics function normally need to build up a logistics network to deal with the flow of the goods from the customers factory to the end customers (Cheong, 2004). In current global economic environment, manufacturing companies tend to establish partnerships with 3PL service providers and they desire to cooperate with some global freight forwarding companies (Lemoine et al, 2003). 3PL service providers with well-content characteristics, such as far geographical spread and wide range of services are popular among the shippers (Qureshi, 2007). As per Bottani and Rizzi (2006), companies favor the 3PL providers with wide range of advanced services more than those traditional ones which can offer mere single logistics functional service. However, supply chain requirement keep changing. Customer demand can change in spatial and temporal terms. In response to the shippers new requirement, 3PL service providers endeavor to extend service coverage geographically and to expand breadth of service so that they can fulfill the interest of their customers as an integrated logistics provider (Qureshi et al, 2008) Relationship with customers 3PL service providers are normally very concerned with the relationship with their customers because they attempt to establish a long-term one with the users (Cheong, 2004). Long-term customer relationships can enable 3PLs to provide more sophisticated services, reduce the risk of replacement, achieve more earnings, and avoid expense of developing new customer (Cahill, 2006). In addition, long-term relationship is built on the basis of mutual trust and sharing of risk and reward (Qureshi et al, 2008). Bothe shipper and 3PLs will benefit from such long-term relationship (Qureshi et al, 2008). Most of 3PL services users agree that logistics costs could decrease even more through strategic relationships with 3PL service providers. Langley et al. (2004) point out that the successful relationship with 3PL service providers will assist the users to achieve their major objective. Customer relationship management is necessary once a 3PL provider first establishes a relationship with a shipper. To keep customers satisfied and coming back, 3PL providers must demonstrate their capabilities and the value these capabilities provider to customers (Wisner et al, 2005). Third-party logistics service providers in China: China has become the most attractive country for more and more foreign investments, manufacturers, and retailers from all over the world, which results in the fast growth of the Chinese economy (Liu, 2008). Accordingly, the development of 3PL has been spurred in China and 3PL industry has achieved significant achievement. Currently, most logistics companies offer extensively various value-added services and have confidence in the continuous development of Chinas logistics industry. Many literatures have research the Chinese logistics area from diverse perspectives and some supply chain-related difficulties facing foreign 3PLs are identified. High transport cost It is not deniable that Chinese government has invested a lot in the logistics sector to improve traffic in recent years. However, poor transportation is still considered as one significant challenge for logistics industry in China, which may result in the increase in logistics cost and the decrease in company profits (Lau Zhang, 2006). Li Fung Research Center (2009) notes that the transportation occupies more than 50 percent of the total logistics cost in China, and undoubtedly the operation costs of 3PL service providers will still be ascending due to the price upswing of commodity and fuel. Another culprit is high local road tolls and other hefty transportation fees (Kerr, 2005b). Underdeveloped physical infrastructure Many MNCs find that it is difficult for them to implement coherent strategies in China because underdeveloped transportation system hinders their distribution and sourcing throughout the country (Speece and Yukiko, 1995). Although Chinas economy and industrial production have been developing rapidly, the current logistics system is loaded with new challenges as it can barely keep pace with the growth rate of economy (Carter et al, 1997). The undeveloped logistics infrastructure in China, including deficient highways, aged port facilities, and limited runways and airports, can hardly fulfill the growing logistics demand in the progress of new economy (Pollit, 1998). The insufficiencies of present distribution system have restricted foreign enterprises to immensely exploit the plenty opportunities in Chinas market (Goh and Ling, 2003). It is thus imperative that the distribution of products and services be supported by a reliable transportation system. The need for guanxi Literally, guanxi means relationship. It is noted that Chinese culture is quite distinct from Western culture in numerous aspects, including the way to conduct business (Jiang and Prater, 2003). Guanxi, which is an important concept for successful business in China, refer to relationship between people (Michailova and Worm, 2003). It suggests a conveyable, reciprocal, invisible and useful responsibility to dyadic personal relationships (Luo, 2000). It is not surprising that Chinese prefer to deal with people they know and trust. As Wang et al. (2003) indicated, guanxi which is created on the basis of mutually beneficial can lower risk as well as competition in business circles. Millington et al. (2006) also state that when looking for satisfying vendors, guanxi is more useful than other information from website, trade market or media. This implies that the knowledge and expertise to understand local circumstance and the communication skill with foreigners are absolutely necessary for establishment of a successful cooperation (Lightfoot and Almeida, 2007). Government regulation Kerr (2006) identifies that government regulation is still 3PL providers biggest challenge. The development of 3PL in China is obstructed by some barriers such as underdeveloped infrastructure and entrenched regulatory circumstance (Lau Zhang, 2006). In the meantime, various regulations set up by different provinces forcefully influence business activities so that the founding of national networks is hindered (Kerr, 2005). It also has made it difficult for 3PL providers in China to fully meet the requirements of their clients. Moreover, there are many regulations and rules for foreign 3PL providers who plan to enter China logistics market. According to Lai and Hsu (2007), foreign 3PL providers must apply for the class A license issued by the Ministry of Foreign Trade and Economic Co-operation (MOFTERC) if they plan to establish subsidiaries as international freight forwarders in China. A survey conducted by Li Fung Research Center (2009) also identifies that the regulations and policies associated with logistics industry are not unalterable because the government will supervise the execution and analyze the effect of the existing ones and then will formulate new ones accordingly to boost the growth of the industry. It is true that a number of government departments which are involved in policies related to logistics industry have impact on the rhythm of changing regulation (KPMG, 2008). Local 3PL providers Chinas local logistics providers have been growing rapidly because foreign firms are increasingly looking to source there. To contend with foreign logistics providers, domestic companies have to upgrade facilities and enhance their service level (KPMG, 2008). Jiang and Prata (2002) indicate that in contrast with foreign 3PL entrants, local players are always in the close association with local or central governments. For instance, Sinatrans is a state owned company and is the only 3PL service provider in China who can provide a nationwide logistics service with full license. The authors also mention that a number of local 3PL providers at regional level have their own special strength in specific areas or specific business. Some of them even look for individual connection built directly with government officials which may be valuable in their daily business. Literature review summary This section has reviewed the literature ranging from some fundamental definitions of outsourcing and 3PL, to challenges for 3PL industry globally and especially in China which represents the current situation foreign 3PL providers are facing in China. In table 2.1, we summarize the above referred articles in each of the focus challenges. Importance of Outsourcing of Logistics Function Importance of Outsourcing of Logistics Function Outsourcing and 3PL, as important business functions, have drawn attention of business operators as well as academic and scholars. A large number of studies have analyzed these areas from a theoretical perspective and a practical point of view. This section will start with the review of outsourcing regarding its definition and importance as well as motivations and concerns. Then, based on the correlation between outsourcing and 3PL, the section presents the concepts of 3PL and most challenges 3PL providers are facing. Lastly, the section shows what could be the current situation of Chinas 3PL industry. Outsourcing of logistics function 2.1.1 Definition and importance Razzaque and Sheng (1998) defined outsourcing as multiple logistics services provided by a single vendor on a contractual basis. Outsourcing is becoming more important today. Due to economic and competitive pressures, it is imperative for different enterprises to pay attention to their core competencies and turn to third-parties to undertake responsibility for other secondary corporate functions. Outsourcing can create profits by improving customer service level, providing high added-value to products, benefiting in exploiting new markets, and offering dedicated resources (Foster and Muller, 1990). By means of outsourcing, companies can obtain competitive advantage through cost reduction and increased responsiveness to market change. Motivation of outsourcing Several reasons lead private business as well as government agencies to outsource logistics functions: Avoid Capital expenditures It reduces capital investment in facilities (Richardson, 1995). This allows the using firm to spending where it can get the best return as in research, manufacturing, marketing, or other functions core to the organization. Increase flexibility This can enable firms to focus on the core business, question any function or department that is not producing revenue and adapt to changes in the market and access to leading edge technology. A third-party will be invited to help a company when demand increase dramatically beyond the capability of the company to fulfill (Razzaque and Sheng, 1998). Many 3PL providers specialize in logistics functions such as transportation, warehousing management and information technology. Cost savings To save costs is identified by most literature as one of the most popular reasons for why outsourcing occurs. In principle, outsourcing will occur to companies for cost reduction when their suppliers offer a service for a low price which however still can cover added overhead, profit, and transaction costs (Harler, 2000). Those companies which outsource their logistics functions to 3PL service providers usually agree that it is more cost saving than to fulfill the same logistics task in-house (Candler, 1994). According to Bradley (1995a), there are some other reasons of logistics outsourcing such as improving service level and customer satisfaction, using 3PL providers logistics IT systems, acquiring outside sophisticated professionals, combining service and minifying number of suppliers, integrating the process of supply chain, and increasing productivity. Concerns of outsourcing Despite the fact that outsourcing is now favored by most organizations, there are still many recognized potential barriers and problems related to outsourcing. Normally the most mentioned reservation which restrains enterprises from employing 3PL service providers is loss of control of 3PLs (Richardson, 1993a). Such tendency can be caused by different objectives and attitudes of the logistics service providers and users towards strategy, profits and service or skills (Axelrod, 2004, p49). The adoption of outsourcing might also lead to a situation in which critical knowledge associated with process and customers would leak to potential competitors (Jennings, 2002). Moreover, unrealized savings with a potential for increased costs, employee moral problems, losing touch with important information, unreliable promises of the providers, their inability to respond to changing requirements have been mentioned as potential risks as well. Each of these concerns should be recognized carefully by organizations that intend to outsource their logistics function, otherwise contract logistics can be another issue to deal with, rather than a catalyst or improvement (Razzaque and Sheng, 1998). Third-Party Logistics 2.2.1 Concept of 3PL Third party logistics service has been described in a few ways, including outsourcing of one single service such as transportation, and outsourcing of a set of complicated processs (Vasiliauskas Barysiene, 2008). Generally, 3PL provide not only just separate warehouse or transport functions but also multiple, bundled services (Leahy et al., 1995). It is also worth mentioned that freight forwarders and shipping lines are included in broad definitions of the 3PL industry (Rao and Young, 1994). On the basis of above definitions, Leib et al. (1993) used the following definition: Third-party logistics involves the use of external companies to perform logistics functions that have traditionally been performed within an organization. The functions performed by the third party can encompass the entire logistics process or selected activities within that process. The authors refer to the 3PL as a new industry and growing business environment has more expectations on 3PL. The usage of 3PL has been considered as logistics alliances at strategic level. Bagchi and Virum (1996, p.193) have developed the following definitions: A logistics alliance indicates a close and long-term, relationship between a customer and a provider encompassing the delivery of a wide array of logistics needs. In a logistics alliance, the parties ideally consider each other as partners. They collaborate in understanding and defining the customers logistics need. Both partners participate in designing and developing logistics solutions and measuring performance. The goal of the relationship is to develop a win-win arrangement. Compared with the prior definition, which focuses on the logistics functional activities, the final one emphasizes the duration of the relationship between the logistics service provider and user, and also covers an extensive range of promising logistics services (Halldorsson Larsen, 2004). Many articles have disclosed that 3PL industry has progressed steadily for ages (Liu, 2008). 3PL providers started as a traditional transportation or warehousing service providers from 1980s. Nowadays, 3PL companies provide a variety services including basis logistics service as well as value added services. Main challenges to 3PL service providers As the 3PL industry has continued to evolve, the 3PL provider, sitting in the middle between the manufacturers or suppliers (the buyers of the 3PL service, known as shippers) and the end customers (the consumer of the products), will need to balance the dynamic pulls generated by upstream and downstream entities, and thus faces challenges are unique to its position. Financial issues Although 3PL providers should develop skills, improve competencies, and provide more value-added service so as to survive and expand business successfully in this flourishing market, the main challenge for them is how to obtain business and achieve acceptable financial performance. Maintain profits under price pressures from customers The economic crisis has caused serious situations for both 3PL users and providers -82 percent of shippers now are implementing cost-cutting strategies and 60 percents are reconsidering their supply chain and relationships with 3PLs accordingly (Capgemini Consulting et al, 2009). As a matter fact, economic factor is a strong motivation for outsourcing, of which cost reduction and cost saving are the main concerns. One of the most significant motivations for outsourcing logistics functions to third parties is their professional knowledge and valuable experience in logistics industry which are costly for their customers to have in-house (Byrne, 1993). However, the decision of employing 3PL providers is usually influenced by the evaluation of cost/service trade-offs (Selviaridis and Spring, 2007). Hence, no matter what strategic stances the logistics providers take, they have to keep upgrading and improving their operational potentialities in the business environment (Sum Teo, 1999). Meanwhile, as price competition is inevitable and most customers are also price sensitive at present, 3PL providers still need to be cost conscious to achieve higher margins, and to prevent themselves from being priced out of the market. Financial stability Many articles have placed emphasis on financial firmness as a critical essential for logistics providers (Bottani Rizzi, 2006). Based on the empirical survey conducted by Boyson et al. (1999) financial stability was ranked as the most significant selection criteria for choosing 3PL providers because it reduce the risk in relationship. A 3PL services provider with stable financial standing can not only better satisfy its clients and implement cost reduction through a dedicated resource, but also diminish risks for logistics partners (Bowersox Daugherty, 1990). Accordingly, Boyson et al. (1999) assert that firms prefer providers demonstrating outstanding customer service level with low price and possessing solid financial stability. Nevertheless, the financial tsunami which has weighted down the world economy has resulted in steep decreasing in logistics demand with no doubt. On the one hand, according to Li Fung Research Center (2009), the clients of the logistics enterprises asked for price cut and longer credit term, and it is difficult for them to collect the payments form clients during such hard times. Bad debts and financial losses will be easily incurred by any imprudent credit management. On the other hand, the confidence for the banks to lend had been damaged by the tsunami. Banks are now only willing to provide loans to selected enterprises or projects, which limits the financing options of the logistics enterprises (Li Fung Research Center, 2009). Clearly, it has always been important for 3PL providers to maintain a sound financial condition to survive in the recession as well as to rise superior to others in the market. Information technology (IT) Capability of information technology IT-based logistics services is considered as significant factor by 88% of shippers, but only less than half (42%) of the shippers are satisfied with the IT capableness of their providers (Capgemini Consulting et al, 2009). Accordingly, such IT capability gap result in a few difficulties for both shippers and 3PLs to collaborate in an adaptive supply chain (Capgemini Consulting et al, 2009). Information is one of the most important elements in logistics management (Cheong, 2004) and it is definitely essential to assist logistics process with effective IT (LaLonde and Masters, 1994). IT capability can be enhanced by employing advanced software, such as electronic data interchange (EDI) networking, enterprise resource planning environments, simulation software, vehicle routing packages, carrier loading optimization tools, etc. (Qureshi et al, 2008). Hardware also may be utilized to facilitate operations and to increase the production efficiency, including radio frequency devices, servers, bar code printers and scanners, global positioning system (GPS), networking and internet/intranet connections, satellite tracking devices, etc. (Qureshi et al, 2008). 3PL services providers which adopt tracking and tracing devices can grant better services to users with quick responsiveness (Rahman, 2004). According to Byrne (1993), the need of sophisticated information technology is impe rative for logistics management to link members like manufacturer, carrier and customer in the supply chain. Sauvage (2003) proposed that to fully satisfy the variety of customers demand, LSPs should continuously employ advanced information technologies in order to enhance their service performance. It is unlikely for a firm which is lagging in a technology to move to a position of leadership (Jennings, 2002). Security of information systems The sharing of so much information inevitably leads to security concerns. It can not be denied that logistics service providers usually still lose customers annually due to issues of trust in privacy and security, though they keep attracting new clients (Pattel Conners, 2008). One possible mentioned security issue is that when a 3PL provider has to serve several direct competitors, the information in relation to all of them should be kept confidential (Grover et al., 1994, p. 38; Lacity and Hirschheim, 1993a, p. 24). Other than cost, security and privacy are also considered as major concerns by many companies when outsourcing. Compatibility of information systems IT compatibility acts an essential role in logistics activities such as forecasting, order purchasing, inventory replenishment and life cycle management (Anand, 2010). According to Arshinder et al. (2007), the information system of the whole supply chain is expected to be compatible. A compatible information system means comprehensible data are quickly shared among the parties throughout the supply chain (Arshinder et al, 2007) while incompatibility will lead to costly and time consuming process because information, though can be shared as well, is rarely in synchronization. At present, it is difficult for information to seamlessly flow throughout the network as international logistics often includes some different transportation modes and carriers. Moreover, there are diverse IT systems in the different trading areas. For example, Europe adopts Administration, Commerce and Transportation (EDIFACT) standards for EDI systems while the US follows the standards of the American National Standards Institute (Rao Young, 1994). These difficulties in global supply chain have challenged 3PLs regarding how to capitalize the gap to provide a distinct competitive advantage. Reliability of information systems As one of the major industry focus in the global logistics market, the field of information systems paid special attention to user satisfaction as an important performance measure (Ives and Olson, 1984; Robey and Farrow, 1982). Bailey and Pearson (1983) have pointed out that reliability is one of the critical criteria of customer satisfaction. There could be many unknown increased reliability risk which result from two major sections of technology. One is that new technology innovations or adoptions of 3PL providers may have an unclear reliability performance. The other is that an existing technology may be applied to a new market with unknown increase failure rates (Collins, 2005). To fulfill the promised logistics service reliably and exactly, 3PL providers must identify and remove uncertainty involved with technology reliability performance. Human Resource (HR) Lack of expertise There is a tendency that firms desire to acquire the expertise from third-party logistics providers who possess particular local knowledge of customs and infrastructure of destination countries in such a growing global market (Razzaque Sheng, 1999). Although one of the drivers for companies to outsource is to acquire resources and logistics professionals (Selviaridis Spring, 2007), the results of the research conducted by Georgia Institute of Technology et al. (2009) show that many outsourcing users dont believe that 3PLs are in the capacity of strategic partners currently, 40% of shippers in the survey expect their 3PL service providers to continue focusing on execution, and a good many of them reckon that 3PL providers lack logistics expertise that would support users increasing outsourcing. Often-cited problems range from misunderstanding the demand of customers supply chain to inadequate professionals in given products and markets (Selviaridis Spring, 2007). In fact, customers are looking for 3PL providers that have expertise in multiple phases of the logistics process. An annual surveys of US 3PL firms indicates that company employee/expertise is regarded by CEOs as the most important asset of the company for business success in the competition, however those same CEOs also agree that currently the most critical problem facing 3PL companies as finding qualified people (Leib and Randall, 1996b). Different culture Almost all members in the supply chain, including third party, have their own company culture which is definitely different from each other (Babics, 2005). According to Pagell (2004), the capacity of how to harmonize its own internal culture with the external different cultures of its customers is one significant factor that 3PL providers should note in the integration of operational services in supply chains. Mckeon (1991) states that for both 3PL providers and their customers, understanding each others cultures and organizational structure is an essential factor to ensure a win-win outsourcing. Compatibility of culture and values is one of the keys to successful partnership which can result in long-term partnership (Qureshi et al, 2008). Culture conflicts often result in change orders, unexpected costs, and sometimes a negative impact on relationships (Kremic et al, 2006). In general, the ability of 3PL providers to understand the customer organizations culture is a basis for partnering. Inadequate education and training In order to remain competitive in the logistics market, 3PL providers have to be vigilant and agile to their customers needs, and continually seek to meet customer expectations as much as possible. Logistics executive should be aware that, due to rapid growth in the logistics industry, there could be a shortage of qualified logistics expertise (Yeung, 2006). Therefore, it is necessary for governments and educational services to allocate more resources, put logistics on formal curriculum, and provide more correlated training programs to fulfill the demand of the whole supply chain. The development of logistics, otherwise, might be constrained by lack of trained logistics personnel (Sum Teo, 1999). Ulengin and Uray (1999) indicate that in Turkey, senior management that is void of professional knowledge of logistics is the fundamental factor limiting the progress of logistics industry. Kerr (2005b) describes poor training as a black hole in China because neither the central government nor Chinas regulatory authorities do much to promote logistics training programs. Obviously, a firm with higher quality of human resources such as better education or training will have superior core competence in the market. Hence, it is imperative for 3PL service providers to offer more training programs to employees so that they can cope with competition in the future (Wang et al, 2006) Business Landscapes Globalization of 3PL market delivering service in new geographic regions The internationalization and globalization of 3PL providers has been boosted by the economies of scale and scope, by the internationalization and globalization of the competitors and by customer following i.e. the internationalization of manufacturing firms, which may demand that the service supplier provides a global network and/or global experience (Arvidsson, 1997, p.74). 3PL providers that take charge of their customers outsourced logistics function normally need to build up a logistics network to deal with the flow of the goods from the customers factory to the end customers (Cheong, 2004). In current global economic environment, manufacturing companies tend to establish partnerships with 3PL service providers and they desire to cooperate with some global freight forwarding companies (Lemoine et al, 2003). 3PL service providers with well-content characteristics, such as far geographical spread and wide range of services are popular among the shippers (Qureshi, 2007). As per Bottani and Rizzi (2006), companies favor the 3PL providers with wide range of advanced services more than those traditional ones which can offer mere single logistics functional service. However, supply chain requirement keep changing. Customer demand can change in spatial and temporal terms. In response to the shippers new requirement, 3PL service providers endeavor to extend service coverage geographically and to expand breadth of service so that they can fulfill the interest of their customers as an integrated logistics provider (Qureshi et al, 2008) Relationship with customers 3PL service providers are normally very concerned with the relationship with their customers because they attempt to establish a long-term one with the users (Cheong, 2004). Long-term customer relationships can enable 3PLs to provide more sophisticated services, reduce the risk of replacement, achieve more earnings, and avoid expense of developing new customer (Cahill, 2006). In addition, long-term relationship is built on the basis of mutual trust and sharing of risk and reward (Qureshi et al, 2008). Bothe shipper and 3PLs will benefit from such long-term relationship (Qureshi et al, 2008). Most of 3PL services users agree that logistics costs could decrease even more through strategic relationships with 3PL service providers. Langley et al. (2004) point out that the successful relationship with 3PL service providers will assist the users to achieve their major objective. Customer relationship management is necessary once a 3PL provider first establishes a relationship with a shipper. To keep customers satisfied and coming back, 3PL providers must demonstrate their capabilities and the value these capabilities provider to customers (Wisner et al, 2005). Third-party logistics service providers in China: China has become the most attractive country for more and more foreign investments, manufacturers, and retailers from all over the world, which results in the fast growth of the Chinese economy (Liu, 2008). Accordingly, the development of 3PL has been spurred in China and 3PL industry has achieved significant achievement. Currently, most logistics companies offer extensively various value-added services and have confidence in the continuous development of Chinas logistics industry. Many literatures have research the Chinese logistics area from diverse perspectives and some supply chain-related difficulties facing foreign 3PLs are identified. High transport cost It is not deniable that Chinese government has invested a lot in the logistics sector to improve traffic in recent years. However, poor transportation is still considered as one significant challenge for logistics industry in China, which may result in the increase in logistics cost and the decrease in company profits (Lau Zhang, 2006). Li Fung Research Center (2009) notes that the transportation occupies more than 50 percent of the total logistics cost in China, and undoubtedly the operation costs of 3PL service providers will still be ascending due to the price upswing of commodity and fuel. Another culprit is high local road tolls and other hefty transportation fees (Kerr, 2005b). Underdeveloped physical infrastructure Many MNCs find that it is difficult for them to implement coherent strategies in China because underdeveloped transportation system hinders their distribution and sourcing throughout the country (Speece and Yukiko, 1995). Although Chinas economy and industrial production have been developing rapidly, the current logistics system is loaded with new challenges as it can barely keep pace with the growth rate of economy (Carter et al, 1997). The undeveloped logistics infrastructure in China, including deficient highways, aged port facilities, and limited runways and airports, can hardly fulfill the growing logistics demand in the progress of new economy (Pollit, 1998). The insufficiencies of present distribution system have restricted foreign enterprises to immensely exploit the plenty opportunities in Chinas market (Goh and Ling, 2003). It is thus imperative that the distribution of products and services be supported by a reliable transportation system. The need for guanxi Literally, guanxi means relationship. It is noted that Chinese culture is quite distinct from Western culture in numerous aspects, including the way to conduct business (Jiang and Prater, 2003). Guanxi, which is an important concept for successful business in China, refer to relationship between people (Michailova and Worm, 2003). It suggests a conveyable, reciprocal, invisible and useful responsibility to dyadic personal relationships (Luo, 2000). It is not surprising that Chinese prefer to deal with people they know and trust. As Wang et al. (2003) indicated, guanxi which is created on the basis of mutually beneficial can lower risk as well as competition in business circles. Millington et al. (2006) also state that when looking for satisfying vendors, guanxi is more useful than other information from website, trade market or media. This implies that the knowledge and expertise to understand local circumstance and the communication skill with foreigners are absolutely necessary for establishment of a successful cooperation (Lightfoot and Almeida, 2007). Government regulation Kerr (2006) identifies that government regulation is still 3PL providers biggest challenge. The development of 3PL in China is obstructed by some barriers such as underdeveloped infrastructure and entrenched regulatory circumstance (Lau Zhang, 2006). In the meantime, various regulations set up by different provinces forcefully influence business activities so that the founding of national networks is hindered (Kerr, 2005). It also has made it difficult for 3PL providers in China to fully meet the requirements of their clients. Moreover, there are many regulations and rules for foreign 3PL providers who plan to enter China logistics market. According to Lai and Hsu (2007), foreign 3PL providers must apply for the class A license issued by the Ministry of Foreign Trade and Economic Co-operation (MOFTERC) if they plan to establish subsidiaries as international freight forwarders in China. A survey conducted by Li Fung Research Center (2009) also identifies that the regulations and policies associated with logistics industry are not unalterable because the government will supervise the execution and analyze the effect of the existing ones and then will formulate new ones accordingly to boost the growth of the industry. It is true that a number of government departments which are involved in policies related to logistics industry have impact on the rhythm of changing regulation (KPMG, 2008). Local 3PL providers Chinas local logistics providers have been growing rapidly because foreign firms are increasingly looking to source there. To contend with foreign logistics providers, domestic companies have to upgrade facilities and enhance their service level (KPMG, 2008). Jiang and Prata (2002) indicate that in contrast with foreign 3PL entrants, local players are always in the close association with local or central governments. For instance, Sinatrans is a state owned company and is the only 3PL service provider in China who can provide a nationwide logistics service with full license. The authors also mention that a number of local 3PL providers at regional level have their own special strength in specific areas or specific business. Some of them even look for individual connection built directly with government officials which may be valuable in their daily business. Literature review summary This section has reviewed the literature ranging from some fundamental definitions of outsourcing and 3PL, to challenges for 3PL industry globally and especially in China which represents the current situation foreign 3PL providers are facing in China. In table 2.1, we summarize the above referred articles in each of the focus challenges.
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