Leadership – Charismatic Individuals or Contingent Characteristics

Leadership – Charismatic Individuals or Contingent Characteristics? A brief analysis of charismatic and situational leaders, leadership and styles. Linesh Palayadan, Cass Business School, City university London, UK. â€Å"Men make history and not the other way around. In periods where there is no leadership, society stands still. Progress occurs when courageous, skilful leaders seize the opportunity to change things for the better† – Harry S. Truman It goes without saying that human beings couldn’t have achieved what they have achieved if they had not worked in groups.Teamwork is probably one of the most important â€Å"inventions† of mankind which does not get explicitly mentioned when one refers about the tools and evolution of human beings from the pre-historic times. None of the magnificent creations of human beings we see today could have been possibly achieved without humans coming in teams and working for a common goal. Teams by themselves ca nnot be successful if they do not have a clear direction or vision. The team is bound to fail in achieving the results if there is no coordination, synchronisation and communication between team members.The concept of team itself comes into existence only because of the arising of a necessity or a goal that would benefit the society, and the means to achieve it cannot be implemented by an individual, however able and skilful he or she may be. Members of the team can be of extremely different personalities, skills and characteristics and every member has his/her own ideas on how to achieve the common goal. It is precisely at this point that the need for a leader arises.What is required is a leader who can channel the necessary skills from the team members towards the common goal and maintain the harmony and coordination between them at the same time. Numerous theories have been postulated on how a leader should be and what the characteristics of the leader should be. Some theories hy pothesised that leaders cannot be made but are born and those personalities or so called â€Å"traits† cannot be cultivated in a person who is not already a born leader while others strongly suggested that given the right circumstances, leaders emerge based on situations and contingencies.Organisations put forward certain requirements for interviewing candidates for its key posts. We all have come across requirements in Job advertisements like good communications, effectiveness in groups, taking initiative, firm under pressure etc. (S Fineman, Y Gabriel, D Sims, 2011). Are these the only qualities of leaders? Can a person with those qualities be successful as a leader? Do these qualities exist as inborn traits in a person? Or can these qualities be inculcated in a person through training and development? What are the different kinds of leaders?What makes a leader outstanding from others? These are some of the questions that we will try to analyse with the help of some specifi c theories which have been proposed before. Two main theories that propose the idea that the qualities required for leadership are inborn in the person or are â€Å"traits† of an individual are the â€Å"Trait theory† and â€Å"Charismatic leadership theory†. While the Trait theory has its origins in the early twentieth century, charismatic leadership theory is more recent and is more or less a return to trait theory.The Trait leadership concept was proposed in Thomas Carlyle’s â€Å"great man† theory where he proposed that â€Å"The history of the world is but the biography of great men†(Carlyle, 1907). He believed that leaders have certain immutable traits which cannot be developed in others. Remarkable developments in behavioural sciences since have led to the decline in favour for the great man theory (David L Cawthon, 1996). The charismatic leadership theory states that the leaders have an innate set of abilities or charisma which canno t be explained (Conger & Kanungo, 1988).These leaders first try to understand the opportunities, possibilities and constrains as well as the preferences and needs of the team members. They then set a vision for a path which accommodates opportunities as well as the preferences and needs of the team members. The final stage is the actual implementation of the vision, motivating the followers in the process. At this stage they also stage demonstrations which projects their image, courage, dedication to the cause, sacrifice etc. (C Jacobsen, R J. House 2001).Charismatic leaders are often value driven, visionaries and have a trail of success stories which motivates the followers. The primary risk of this style of leadership is that it may not be effective in all the contexts and such leaders can fade into oblivion as soon as the context changes. Perhaps the most striking example of Charismatic leadership is that of Sir Winston Churchill who proved to be a very effective war time leader and prime minister but was voted out when elections were held after Page 1 he war because people did not consider him as somebody who could effectively handle post-war reforms (Roy Jenkins, 2003). One of the strongly criticized and censured leaders of all times is Adolf Hitler who because of his war crimes and atrocities, went down in history as a bad leader. How did he rise from his humble beginnings to the all-powerful leader of a country which had the potential to be the most powerful country in the world if had won in the Second World War? The art of leadership†¦ onsists of consolidating the attention of the people against a single adversary and taking care that nothing will split up that attention. – Adolf Hitler Hitler took advantage of the fact that people in Germany were disillusioned with the leadership at that time and they were looking for a leader who would turn their insult and injury into victory and fame. (Gardner, 1995, p. 334)He was a wonderful orator wh o could mesmerise his audience with his speech through which he was successful in convincing the people of Germany that he was their only hope and only he could catapult Germany to the realms of success and prosperity.His charisma in motivating the masses(John Dreijmanis, 2005) through speeches, vision and aggressive nationalism led to mass hysteria, hope and a sense of pride and nationalism in the people, which in turn catapulted him to the highest realms of power. His leadership notwithstanding the ultimate failures he had was instrumental in uniting German people and hence can be classed under strong Charismatic leadership.One of the most recent, remarkable and widely reported event in India was the movement against corruption by a common man named Mr Anna Hazare (NY times, Oct 2011). Until recently little was known about the man nationwide and in a span of about 6 months almost every household in India knew about him because of his protest against corruption and his demands to b ring a corruption prevention watchdog with unprecedented sweeping powers which had the potential to put many corrupt politicians and officials behind bars (Reuters Aug 2011).A social worker and an ardent follower of Mahatma Gandhi(N Y times August 18, 2011), Mr Hazare is a 74 year old man, who is not a mesmerising orator, but still managed to mobilise hundreds of millions of Indians throughout India and abroad to pressurise the Indian government to constitute such a watch dog. He later went on to sit for an indefinite hunger strike until his demands were met. The use of technology for the movement was unprecedented. Indians all over the world used online media web-sites like twitter and Facebook to move mass opinion in his favour and to hold protest rallies in major capitals of the world.Such was the scale of support for him that Indian government finally relented to agree to his demands (Times of India, Sep 2011). In the Indian capital of New-Delhi, hundreds of thousands of people from different parts of India descended on to the venue of the peaceful protest, provoking government fears for law and order problems. Different Business schools in India conducted studies as to how this frail old man was able to mobilise masses in such huge numbers and provide leadership to them in what is described as one of largest protest movements in post-independence India (Businesstoday, Aug 2011).They wanted to know how his leadership example could be useful for the future business leaders. Under his leadership many volunteers and charitable organisations came together under one umbrella for organising and maintaining the venue and order, organising and coordinating media related activities, publicity, logistics etc. His leadership style is more of a democratic form of leadership although there is a major element of charisma attached. Weber, 1968 has pointed out that a charismatic leader is likely to appear when social situation makes people feel distress (RJ House, 2001).I n this case the people of India have been so much frustrated with corruption that right environment was created for the emergence of such a leader. Shamir, House and Arthur (1993) have described in a bit more detail as to what those conducive conditions could be. They have listed four situations that can catalyse the emergence of Charismatic leaders. First, the situation is perceived as a threat to important values. Second, relationship between goal accomplishment and performance is unclear. Third, the situation is unstable and fourth it requires exceptional effort.These situations give rise to a weak psychological situation in which a charismatic leader can easily emerge and influence the followers provided he is able to offer hope and solution to the people. In the above example and also in case of post-world war I Germany, situations were quite favourable for the emergence of a charismatic leader. Bendix (1985) states that in such situations it is not certain that a charismatic l eader will evolve in spite of the prevailing conducive conditions and utter necessity for such a leader(C Jacobsen, R J. House, p77, 2001). He also says that it is entirely possible that a charismatic who ossesses none of the above said characteristics may emerge a leader by articulating ideological, moral or other values relevant to the prevailing conditions. Another theory of leadership called behavioural model (Blake & Mouton, 1964) states that all leaders can be placed on a grid which evaluates them based on their people concern and task completion concern. According to Page 2 behavioural model, different kinds of leaderships may be prevalent in different organisations which may go from one extreme to another in terms of concern for people and concern for task.A firm in which managers exhibit so called â€Å"impoverished or indifferent† style leadership, where managers have little concern for job completion or people, is rich in disorganisation, dissatisfaction and dishar mony. The other extreme end of this style is â€Å"Sound style† where there is high concern for people and productivity. Such organisations are bound to succeed as they have high productivity and motivation and belongingness among employees is also very high.Some organisations exhibit â€Å"country club style† leadership where concern for people is very high but not for productivity. The leaders do not want people to be unhappy and such organisations are not very successful. Another extreme is the â€Å"Dictatorial style† where there is no concern for people but very high concern for productivity. Productivity in such organisations may be very high in the shorter term but these organisations suffer from high employee turnover due to enforcement of strict rules, regulations and punishments.Most of the organisations follow what is called the â€Å"middle-of-the-road style† where leaders show some concern for both people and productivity hoping to achieve ac ceptable results. One of the most prominent schools of thought in leadership theories is â€Å"Situational or Contingency theory†. Proposed originally by Hersey & Blanchard, 1982, it states that leaders must vary their leadership style based on subordinate’s competency and commitment. A leader’s style should be â€Å"Delegation† if the team members are competent and committed, â€Å"Telling† or directive if they are neither competent nor committed.In case where the team members are competent but not committed the style should be â€Å"Participating† and the final case in which the team members are committed but not competent, the style should be â€Å"selling†. Fred Fiedler’s contingency model states the relationship between leadership style and favourableness of the situation (Fred Luthans, 1992). His studies suggest that situations are favourable for the leader if the three dimensions are high, the dimensions being 1. Leader- member relationship 2.Degree of task structure 3. Leader’s position power through formal authority. He also found that if the above dimensions are very favourable or very unfavourable, directive or â€Å"hard-nosed leaders† are more effective whereas lenient leaders are more effective in situations where the dimensions are moderately favourable. My extensive experience in various successful IT and engineering companies, compel me to come to the conclusion that these companies have adopted situational leadership as their main strategy.The reason for this may be that such companies require their engineers to be productive from day one and as they become more experienced, they are expected to assume the ownership of the modules they work on and become the point of contact for all issues on the module. The leaders in such cases assume different forms of situational leadership to deal with different team members depending on their willingness and ability. Once the leader is convinced of the team member’s competence and commitment, delegation is the form of leadership he or she chooses for that team member.Since performance in terms of the quality of work done and sticking to schedule is the main criteria in assessing the performance in such companies, telling style of leadership is also very common and results in redundancies many times when the team members are unwilling and unable. In larger companies, Transformational form of leadership (Bernard M. Bass, 1985) is also not very uncommon nowadays in which the leader takes care to develop and transform his or her followers through, inspirational motivation, intellectual simulation, idealised influence and most importantly individualized consideration.Leadership whatever form it may assume is an essential skill without which the society will have little progress. Leaders need courage, vision and determination to change things for better. The need for better leaders will never cease to exist and right people with right skills will always seize the opportunity to lead the world for a better tomorrow. References 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Ann Florini. The Right to Know: Transparency for an Open World. New York, 23: Columbia University Press. Bass, B. M. 1998. Transformational leadership: Industrial, military, and educational impact.Mahwah, NJ: Erlbaum Bendix, R. 1985. Reflections on Charismatic leadership. Blake, R. , Mouton, J. 1964. The Managerial Grid: The Key to Leadership Excellence. C Jacobsen, R J. House 2001 Dynamics of charismatic leadership A process theory, simulation, and tests 75-112 The leadership quarterly 12 David L. Cawthon, 1996. The Great Man Theory Revisited, Business Horizons. Fred Luthans, 1992. Organisational behaviour 276,277 Hersey, P. , & Blanchard, K. , 1982. Management of organizational behaviour, 4th ed. Englewood Cliffs, NJ: Prentice Hall.John Dreijmanis, 2005 A portrait of the artist as a politician: the case of Adolf Hitler, 3, Science Dire ct. S J. Zaccaro, Zachary N. J. , 2003. Leadership theory and practice: Fostering an effective symbiosis, Science direct. Page 3 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. S Fineman, Y Gabriel, D Sims, 2011. Organising and Organisations. Roy Jenkins, 2003. Churchill: A Biography, Victory in Europe and Defeat in Britain, PP789-819 (Paperback) http://www. nytimes. com/2011/08/21/world/asia/21india. html? _r=1 http://www. nytimes. com/2011/08/22/world/asia/22india. html http://in. reuters. om/article/2011/08/24/idINIndia-58938520110824 http://www. washingtonpost. com/world/india_agrees_to_protesters_demand_on_graft_panel/2011/04/09/AFFyy05C_story. html? wprss=rss_homepa ge http://www. nytimes. com/2011/08/19/world/asia/19hazare. html http://businesstoday. intoday. in/story/fms-students-study-annas-stir-against-corruption/1/18220. html http://articles. timesofindia. indiatimes. com/2011-09-02/ranchi/30105617_1_munish-thakur-case-study-lokpal-movement Special thanks to Prof Cliff Oswick, Ca ss Business School, for Guidance and permission to use his lecture materials and contents. Page 4

Proessionals Responsibility To The Society Essay

Professionals should not restrict their work to their work place only. Instead they should extend it to the community in which they operate. Professionals can be involved in the society in many ways which include education, economic empowerment and creation of international links. Professionals have a wider understanding of the contemporary affairs. This knowledge can be used to educate the society on its civil rights, how to respond to social challenges and enlightening them on the national and international affairs. The society expects the professionals to use their knowledge and understanding of these matters to help them to be better braced to face challenges in the society. Education can be done through seminars, awareness meeting and mobilizations in order to enable the people to live together harmoniously. The society needs awareness in matters of gender parity, respect for religious and racial differences within the community and other social matters as may be violated in the society. Another area of education is how to utilize the natural resources sustainably since ignorance of such a serious matter can cause drastic effects on people. Â  Professionals can also contribute to the economic empowerment of the society through many ways. They can either directly or indirectly take part in activities aimed at developing people economically in the society. They can do this by proving the necessary conducive environment that can enable people in the society to realize their full potential. In empowering people, professionals have the obligation to enlighten the society on the factors of production available to them and how to look for market for their goods. They can also contribute directly by building schools, factories and medical facilities where people in the community can access them easily. Professionals are in a better position, due to their experience and knowledge, to identify talents in the society. Such talents can be developed and promoted in order to enable be people to live to their potentials. Organization of sporting activities and meet people campaigns are some of the activities which can be used to achieve this. At the same time professionals can use their knowledge to provide carrier counseling for students within the community in which they work. This can help them in choosing their carriers hence empowering them economically in future. Â  Professionals can help to link the society with the outside world. Since they have a better understanding of the culture, believes and economic activities of other people, they can enlighten the society not only on how to interact but also areas of interaction that can realize maximum returns out of such interactions. They can be involved in exchange programs in fields of education, business and culture to mention but a few. This can promote international understanding and cooperation among different countries. Â  Journalists are supposed to provide information to the society. However, this can be difficult in societies where the living standards are low. It becomes difficult for people to access the information due to poverty levels. At the same time some in some countries there is lack of freedom to journalists. They are limited on what they can report. While fighting for their rights, they should fight for the rights of the society as well. Â  Teachers on the other hand are supposed to reduce illiteracy level in the society but this is made difficult by the fact that education is expensive in some countries. Cultural reasons also water their efforts to lighten the society through education. Â  Lawyers can be of benefit to the society by promoting civil rights in the society but their work is hindered mostly by cultural and reasons. Some practices which violate human rights are in most cases valued highly by people in the society. Failure to report of injustices committed in the society also contributes to the difficulties the lawyers face in carrying out their responsibility to the society. Â  Reference: 1). www.internews.org/global/gov/default.shtm 2). www.americanpressinstitute.org/pages/resources/2005/07/

Acceptable Pins

Read the Case – Acceptance Sampling of Pins of Complete Business Statistics and answer the following questions. Also use the templates to verify the answer. Check and see the effect on acceptance of pins, when the mean and standard deviations are manipulated. Identify the most profitable situation based on cost of reengineering. 1. What is the probability that a batch will be acceptable to the consumer and if the probability is large enough to be an acceptable level of performance?If the population mean and standard deviation of the length of the pins are adjusted in order to improve the percentage accepted, which one do you think in practice is easier to adjust, the mean or the SD and why? 3. If the lathe can be adjusted to have the mean of the lengths to any desired value, what should it be adjusted to and why? 4. If the mean cannot be adjusted, but the SD can be reduced, what maximum value of the SD would make 90%, 95% and 99% of the parts acceptable to the consumer? (Assum e the mean to be 1. 008 inches).5. Considering the cost of resetting the machines (to adjust the population mean involving the engineer’s time, re-engineering process and cost of production time lost): 1. Assume it costs $150 x2 to decrease the SD by (x/1000) inch. Find the cost of reducing the SDs to the values found in question no. 4. 2. Assume that the mean has been adjusted to the best value at a cost of 80$, calculate the SD necessary to have 90%, 95% and 99% of the parts acceptable and their costs. 3. Based on the above, what is your recommended mean and SD? Verify your answers by using excel templates.Format your report consistent with APA guidelines. CASE Acceptance Sampling of Pins A company supplies pins in bulk to a customer. The company uses an automatic lathe to produce the pins. Factors such as vibrations, temperature, wear and tear affect the pins, so that the lengths of the pins made by the machine are normally distributed with a mean of 1. 008 inches and a st andard deviation of 0. 045 inch. The company supplies the pins in large batches to a customer.The customer will take a random sample of 50 pins from the batch and compute the sample mean. If the sample mean is within the interval 1.000 inch  ± 0. 010 inch, then the customer will buy the whole batch. To improve the probability of acceptance, the production manager and the engineers discuss adjusting the population mean and Standard deviation of the length of the pins. The production manager then considers the costs involved. The cost of resetting the machine to adjust the population mean involves the engineers’ time and the cost of production time lost. The cost of reducing the population standard deviation involves, in addition to these costs, the cost of overhauling the machine and reengineering the process.

The Decline of the Honeybees in North America Term Paper

The Decline of the Honeybees in North America - Term Paper Example It is characterized by Few or lack of dead bees in the hive; pollen and honey stores in the hive; the presence of live queen with few bees; and loss of adult worker bees among other factors. Historically, the tendency of honey bee colony loss through pathogens, pests, and parasites among other diseases was a common issue in America. It is an issue that the Americans were very familiar with and had its remedy because it was not very critical as the current phenomena of CCD. In fact, research by the U.S. Department of Agriculture (USDA) has attributed this overwinter loss to other unknown factors other than CCD. Nevertheless, some vigorous scientific researchers have related the contemporary CCD in North America with a number of issues. In this case, diet and nutrition, pest and diseases, genetic factors and diversity, pesticides and other chemicals, environmental stress, and bee management are associated with CCD. Therefore, the contemporary research tries to view their effects on bee colony health into detail (Corn, 2014). Genetic diversity has been seen as one of the major issues that scholars have attributed to the current decline in the population of colony honeybees. In this case, some scholars tend to view inbreeding as a possible contributor to the current reduction in the population of the honeybees in North America. These researchers argue that inbreeding, if not properly handled, is one of the factors that may create weak species incapable of resisting even simple diseases.

How Political Lines or Action can affect and improve the different Essay

How Political Lines or Action can affect and improve the different sectors of the Economy in UK - Essay Example Leading publications are stuffed with articles about the political economic system of economic occurrence or a different; Specialty journals are actually started; conferences with a specific fiscal issue typically have no less than one paper about the politics on the issue, let alone numerous meetings devoted only to political economy. Simply speaking, it seems justified to talk about the new politics, economy as an important subject of recent research also to conclude that this is not simply a new fad, but a location of analysis thats here to keep. In limited, the political economic system falls in that specific class of stuff that seem pretty old as well as musty as well as quite younger and fresh while doing so (Press.princeton.edu, 2014). Politics and financial system are without a doubt two distinct fields, yet greatly associated as they said; politics cannot be fully understood without the economics in addition to vice versa. In UK, politics really end up in the matter in economics; on who have lost the money and the amount as the challenge of personal dilemma has been tackled. With the economics, they just find the problem as a mere economic crisis; but in terms of political economy, the challenge has something to do with the tricks of personal letters. Possessing these problems, political system could even be questioned in its ability on solving and producing decision on the matter. A key area regarding government economic policy could be the role that the government gives to the state within the economy. The key to your smooth running economy is usually having appeared fiscal as well as monetary insurance policies. We have to have policies that could be changed after a while to far better serve your economy overall. The UK economy has had its good and bad, and the actual economy is probably in a new downward time now, but economic and monetary policies are usually adjusted to adjust to what is most beneficial for

French new wave Essay Example | Topics and Well Written Essays - 750 words

French new wave - Essay Example This paper will analyze a particular movement in it which is called French New Wave. One would make no mistake that after the World War II the cinema in France was experiencing revival. Indeed, 1950’s and 1960’s were the decades when talented directions were trying to construct their own unique vision of the world and convey it with the help of their films. At first the public as well as the critics did not accept this novel approach in a positive way, considering it to be raw, absurd and completely lacking any aesthetics. However, over time the bold new vision of the film makes was praised and accepted. Nevertheless, the decline of interest toward French New Wave emerged in 1980’s with new cultural dominant appearing in the global artistic environment. Considering the development of the above mentioned movement, one can not help noticing that it has been largely influenced by the American noir films as well as the directors who made them. In other words, it is not the mainstream Hollywood movies that shaped their worldview, but rather those movies which were created by true masters of their trade (Kaplan 2009, p. 56). Indeed, the French directors wanted their movies to have design and aesthetics that would be characteristic to one director only, creating the world which can not be confused with the work of someone else. It is quite obvious that the analysis of French New Wave may not be completed without examination of its formal and narrative styles. Speaking of the former, it must be noted that the directors experimented with new techniques of editing and tried to present their movies in an unusual manner. For example, tracking shots or jump cuts were frequently used to show the fragmentation of the narration (Marie 2003, p. 43). Long shots were used primarily to organize the visual environment and present the audience with a better understanding of the general situations. Another point that should be

Was the Iraq war legal Essay Example | Topics and Well Written Essays - 1250 words

Was the Iraq war legal - Essay Example The reason is that the US adopts a realist policy as the basis of carrying out its foreign policy. Successive American governments have followed offensive realist approaches and refused to agree or endorse any treaties, whose objectives do not correspond to United States interests. In a bid to strengthen its power, United States has repeatedly called for greater global acceptance of democratic ideologies, as well as an increased role of global institutions. Ironically, the United States has ignored global institutions like United Nations (Jakobsen and Jakobsen 2009). Another underlying reason behind Iraq incursion is the US energy policy, despite perpetrators stressing that Iraq war was solely for self defense against weapons of mass destruction, and for humanitarian intercession, as well. US policy on energy is based on a strong fervor that the nations’ needs may only be met through economic and military superiority. A principal upshot of this policy is that corporations that have associations with the oil sector are not to be defied in any manner. America tolerates sufficient refinery capacity and seeks alternative sources of energy elsewhere. Accordingly, once publicized policies to develop artificial fuels to recover oil from shale have resulted into a scam on the country’s taxpayers. Additionally, United States vehicle makers whose profits depend on guzzlers have the lowest convoy average mpg in many years. As global demand for oil increases, American leaders have come to increasingly depend on their military strength when required to take control of oil producing nations such as Iraq, which are less accustomed to America’s fuel precedence. Hence, United States decided to meet its energy needs by continuing a geopolitical realm... Another underlying reason behind Iraq incursion is the US energy policy, despite perpetrators stressing that Iraq war was solely for self-defense against weapons of mass destruction, and for humanitarian intercession, as well. US policy on energy is based on a strong fervor that the nations’ needs may only be met through economic and military superiority. A principal upshot of this policy is that corporations that have associations with the oil sector are not to be defined in any manner. America tolerates sufficient refinery capacity and seeks alternative sources of energy elsewhere. Accordingly, once publicized policies to develop artificial fuels to recover oil from shale have resulted into a scam on the country’s taxpayers. Additionally, United States vehicle makers whose profits depend on guzzlers have the lowest convoy average mpg in many years. As global demand for oil increases, American leaders have come to increasingly depend on their military strength when req uired to take control of oil-producing nations such as Iraq, which are less accustomed to America’s fuel precedence. Hence, United States decided to meet its energy needs by continuing a geopolitical realm using force on Iraq (Hinnebusch 2007). Some manifestations to this assertion were the posting of more than one hundred thousand troops and additional fourteen thousand oil infrastructure security guards in Iraq in 2005. America also puts some warships to defend oil tankers in and around the Persian Gulf.

Slavery Legacy anf Its Influence on Economic Development of U.S. South Assignment

Slavery Legacy anf Its Influence on Economic Development of U.S. South - Assignment Example With the elimination of slavery during the civil war, African- Americans slaves during the earlier periods had fundamentally no introduction to proper education. Evidently, the elevated extent of proceeds disparity, results from the influence of slavery on the existing finances. It is crucial to denote the impacts of slavery on the economy of the U.S. South. This is because the south experiences constant poverty. It has an elevated poverty rate than the American standard. It is important to assert that slavery contributed to the economic development of US; however, it posed numerous challenges in the realms of industrialization, education, and income equality. Slavery affected the early and present development of the south in subtle ways a well. With most of their wealth tied up in slaves, slave owners naturally strove to maximize the value of this asset. Given the mobility of forced labor, owners could afford to be footloose, regularly moving their slaves from place to place to acce ss the higher productive land. In contrast to their land-owning counter parts in the north, slaveholders had little incentives to spend in regional infrastructure, schools, or roads to encourage the growth of towns. All activities were associated with augmenting land cost but had no obvious impact on slave values. Thus, the south stayed more rural and institutionally underdeveloped compared to the north. For similar explanations, southerners did not expand their financial activities like investing in manufacturing. In 1840s, the south’s per capita investment in manufacturing was less than one-third of the north’s, a trend attributable to the south’s lack of urbanization, lack of infrastructure, unequal distribution of incomes, smaller home markets, and poor access to resources (Scott 313). In areas that relied heavily on slave labor, the economy focused narrowly on Agricultural activities and, Industrialization delayed. Industrialization was the south’s s econd importance (Scott 313). There was a hold back in manufacturing and commerce in the old South for three reasons. First, the slaves ware not capable of mastering the precise, delicate operations that manufacturing supposedly involved. Second, masters did not have the idea to gather adequate resources or the need to invest in industrialization (Smith 73). Thirdly, the absence of big town in the South was a necessary consequence of the insurrectionary risks such as concentrations of slaves would pose to southern society (Smith 73). Slavery was root to inequality. This has to date affected the education in the South. There is still bottomless and broad literature on the educational divide in the south. The proper learning was in accessible in the past to the slaves. Their first offspring were only able to complete fewer years of education on standard than the whites were. Furthermore, they had access to racial isolated communal schools, where they received a quality lower learning compared to that acquired by southern whites. Low learning and excellence led to the continuation of huge earnings difference. This has affected the economy of the south even today. The existing differences at the south are linked with disparity in earnings. Former slave countries are currently more imbalanced. They show a higher scarcity pace and a higher amount of racial discrimination. Moreover, racial inequality, which

Managing Strategy NETFLIX Case Study Example | Topics and Well Written Essays - 3500 words

Managing Strategy NETFLIX - Case Study Example As a result of this rapid success, Netflix began to create alliances with movie studies, such as Warner Home Video, that provided both partners opportunities for sharing revenues. As a result of these agreements, the company released its IPO for shareholders in 2002, as a company that could sustain growth and remain profitable long-term. With new capital availability as a result of having publicly traded stock, Netflix was now in a substantially sound financial business that provided opportunities to expand the business model. Today, Netflix provides customers with a flat rate membership of $7.99 USD per month, with the ability to rent DVDs and view streaming video content. Ease and convenience of using credit cards via Internet sales channels now gives Netflix immediate revenues that improves services and expand the vastness of its online movie libraries. This report explores the strategic position of Netflix, offering a full strategic appraisal of the company between the years 2010 and 2014. The investigation consists of analyses of the firm’s competitive strategy, performs an internal and external market analysis, determines the key strategic issues that have faced the company, strategic growth options for the company, and a description of the most relevant and viable strategies for improving the market performance of the firm long-term. Netflix operates in four key markets: DVD by mail, streaming video content subscriptions, original television programming, and video game rentals. The firm’s original market entry strategy for DVDs-through-mail was as a pioneer in this service concept in the United States, as a differentiator, giving the company a consumer-perceived uniqueness for providing convenience without having to visit a bricks-and-mortar rental company. Kalyanaram and Gurumurthy (2008) iterate the pioneers have tremendous

Organic food Essay Example for Free

Organic food Essay We asked Food Scientists a simple question: â€Å"What foods do you avoid? Experts from different areas of specialty explain why they won’t eat these eight foods. Food scientists are shedding light on items loaded with toxins and chemicals–and simple swaps for a cleaner diet and supersized health. Experts from different areas of specialty explain why they won’t eat these eight foods. Clean eating means choosing fruits, vegetables, and meats that are raised, grown, and sold with minimal processing. Often they’re organic, and rarely (if ever) should they contain additives. But in some cases, the methods of today’s food producers are neither clean nor sustainable. The result is damage to our health, the environment, or both. So we decided to take a fresh look at food through the eyes of the people who spend their lives uncovering what’s safe–or not–to eat. † Their answers don’t necessarily make up a â€Å"banned foods† list. But reaching for the suggested alternatives might bring you better health–and peace of mind. 1. The Endocrinologist Won’t Eat: Canned Tomatoes Fredrick Vom Saal, is an endocrinologist at the University of Missouri who studies bisphenol-A. The problem: The resin linings of tin cans contain bisphenol-A, a synthetic estrogen that has been linked to ailments ranging from reproductive problems to heart disease, diabetes, and obesity. Unfortunately, acidity (a prominent characteristic of tomatoes) causes BPA to leach into your food. Studies show that the BPA in most people’s body exceeds the amount that suppresses sperm production or causes chromosomal damage to the eggs of animals. â€Å"You can get 50 mcg of BPA per liter out of a tomato can, and that’s a level that is going to impact people, particularly the young,† says vom Saal. â€Å"I won’t go near canned tomatoes. † The solution: Choose tomatoes in glass bottles (which do not need resin linings), such as the brands Bionaturae and Coluccio. You can also get several types in Tetra Pak boxes, likeTrader Joe’s and Pomi. Exposure to BPA Causes Permanent Damage In OffSpring 2. The Farmer Won’t Eat: Corn-Fed Beef Joel Salatin is co-owner of Polyface Farms and author of half a dozen books on sustainable farming. The problem: Cattle evolved to eat grass, not grains. But farmers today feed their animals corn and soybeans, which fatten up the animals faster for slaughter. But more money for cattle farmers (and lower prices at the grocery store) means a lot less nutrition for us. A recent comprehensive study conducted by the USDA and researchers from Clemson University found that compared with corn-fed beef, grass-fed beef is higher in beta-carotene, vitamin E, omega-3s, conjugated linoleic acid (CLA), calcium, magnesium, and potassium; lower in inflammatory omega-6s; and lower in saturated fats that have been linked to heart disease. â€Å"We need to respect the fact that cows are herbivores, and that does not mean feeding them corn and chicken manure,† says Salatin. The solution: Buy grass-fed beef, which can be found at specialty grocers, farmers markets, and nationally at Whole Foods. It’s usually labeled because it demands a premium, but if you don’t see it, ask your butcher. 3. The Toxicologist Won’t Eat: Microwave Popcorn Olga Naidenko, is a senior scientist for the Environmental Working Group. The problem: Chemicals, including perfluorooctanoic acid (PFOA), in the lining of the bag, are part of a class of compounds that may be linked to infertility in humans, according to a recent study from UCLA. In animal testing, the chemicals cause liver, testicular, and pancreatic cancer. Studies show that microwaving causes the chemicals to vaporize–and migrate into your popcorn. â€Å"They stay in your body for years and accumulate there,† says Naidenko, which is why researchers worry that levels in humans could approach the amounts causing cancers in laboratory animals. DuPont and other manufacturers have promised to phase out PFOA by 2015 under a voluntary EPA plan, but millions of bags of popcorn will be sold between now and then. The solution: Pop organic kernels the old-fashioned way: in a skillet. For flavorings, you can add real butter or dried seasonings, such as dillweed, vegetable flakes, or soup mix. Make it organic and use coconut oil. If You’re Still Eating Microwave Popcorn, You’re Not Fully Grasping The Health Consequences 4. The Farm Director Won’t Eat: Nonorganic Potatoes Jeffrey Moyer is the chair of the National Organic Standards Board. The problem: Root vegetables absorb herbicides, pesticides, and fungicides that wind up in soil. In the case of potatoes–the nation’s most popular vegetable–they’re treated with fungicides during the growing season, then sprayed with herbicides to kill off the fibrous vines before harvesting. After they’re dug up, the potatoes are treated yet again to prevent them from sprouting. â€Å"Try this experiment: Buy a conventional potato in a store, and try to get it to sprout. It won’t,† says Moyer, who is also farm director of the Rodale Institute (also owned by Rodale Inc. , the publisher of Prevention). â€Å"I’ve talked with potato growers who say point-blank they would never eat the potatoes they sell. They have separate plots where they grow potatoes for themselves without all the chemicals. † The solution: Buy organic potatoes. Washing isn’t good enough if you’re trying to remove chemicals that have been absorbed into the flesh. Budget tip: Organic potatoes are only $1 to $2 a pound, slightly more expensive than conventional spuds. 5. The Fisheries Expert Won’t Eat: Farmed Salmon Dr. David Carpenter, director of the Institute for Health and the Environment at the University at Albany, published a major study in the journal Science on contamination in fish. The problem: Nature didn’t intend for salmon to be crammed into pens and fed soy, poultry litter, and hydrolyzed chicken feathers. As a result, farmed salmon is lower in vitamin D and higher in contaminants, including carcinogens, PCBs, brominated flame retardants, and pesticides such as dioxin and DDT. According to Carpenter, the most contaminated fish come from Northern Europe, which can be found on American menus. â€Å"You could eat one of these salmon dinners every 5 months without increasing your risk of cancer,† says Carpenter, whose 2004 fish contamination study got broad media attention. â€Å"It’s that bad. † Preliminary science has also linked DDT to diabetes and obesity, but some nutritionists believe the benefits of omega-3s outweigh the risks. There is also concern about the high level of antibiotics and pesticides used to treat these fish. When you eat farmed salmon, you get dosed with the same drugs and chemicals. The solution: Switch to wild-caught Alaska salmon. If the package says fresh Atlantic, it’s farmed. There are no commercial fisheries left for wild Atlantic salmon. Farmed Fish vs. Wild Fish: How Healthy Is The Fish At Your Favorite Grocery? 6. The Cancer Researcher Won’t Drink: Milk Produced With Artificial Hormones Rick North is project director of the Campaign for Safe Food at the Oregon Physicians for Social Responsibility and former CEO of the Oregon division of the American Cancer Society. The problem: Milk producers treat their dairy cattle with recombinant bovine growth hormone (rBGH or rBST, as it is also known) to boost milk production. But rBGH also increases udder infections and even pus in the milk. It also leads to higher levels of a hormone called insulin-like growth factor in milk. In people, high levels of IGF-1 may contribute to breast, prostate, and colon cancers. â€Å"When the government approved rBGH, it was thought that IGF-1 from milk would be broken down in the human digestive tract,† says North. â€Å"There’s not 100 percent proof that this is increasing cancer in humans,† admits North. â€Å"However, it’s banned in most industrialized countries. † The solution: Buy raw milk or check labels for rBGH-free, rBST-free, produced without artificial hormones, or organic milk. These phrases indicate rBGH-free products. Why Do Humans Still Drink Milk? 7. The Biotech Specialist Who Won’t Eat Conventional Soy: GMO Unfermented Soy Michael Harris is biotech specialist who has directed several projects within the biotech sector including those for genetically engineered food. He has been a consultant, manager and director for companies such as Xenon Pharmaceuticals and Genon Corporation. The problem: Genetically engineered food is a cause of great concern due to the manipulation of DNA and genetic code including transfers from one species to another. Fermented Soy Is The Only Soy Food Fit for Human Consumption and since almost 90% of soy in the world is genetically modified, if you are not ensuring sources are organic, long-term health problems are inevitable, especially since soy has been found to affect hormonal balance and even cause cancer. The solution: Check labels to ensure soy is Non-GMO or organic and never consume unfermented sources. If possible contact the company to find out exactly where the Non-GMO soy was obtained. 8. The Organic-Foods Expert Won’t Eat: Conventional Apples Mark Kastel, a former executive for agribusiness, is codirector of the Cornucopia Institute, a farm-policy research group that supports organic foods. The problem: If fall fruits held a â€Å"most doused in pesticides contest,† apples would win. Why? They are individually grafted (descended from a single tree) so that each variety maintains its distinctive flavor. As such, apples don’t develop resistance to pests and are sprayed frequently. The industry maintains that these residues are not harmful. But Kastel counters that it’s just common sense to minimize exposure by avoiding the most doused produce, like apples. â€Å"Farm workers have higher rates of many cancers,† he says. And increasing numbers of studies are starting to link a higher body burden of pesticides (from all sources) with Parkinson’s disease. The solution:Buy organic apples or apples from a farmer that you trust!

AirAsia Berhad (AirAsia) | Analysis

AirAsia Berhad (AirAsia) | Analysis Introduction AirAsia Berhad (AirAsia) is one of the leading low cost airlines in South East Asia which has expanded rapidly since 2001. The company is based in Kuala Lumpur, Malaysia and has successfully positioned itself in customers mind through the simple slogan Now Everyone Can Fly (AirAsia, 2009). The company is currently valued at approximately RM2.7 billion and has a total of 60 aircrafts that fly to over 50 domestic and international destinations with over 400 domestic and international flights daily (Euromonitor International, 2009). The operation for the short and long haul are handled by AirAsia and its sister company, AirAsia X Sdn Bhd (AirAsia X). AirAsia aims to establish itself as a leading low cost carrier in market by valuing its customers through cost advantages created by operational effectiveness and efficiency. More customers are able to fly taking into consideration the low fare charges as AirAsia capture segments of customers that previously could not afford the airlines fare. Whether the strategy exploits the companys key resources Each organisation is unique in terms of it resources and capabilities and the key to success merely depend on its ability to find or create a competence that is distinctive (Teece et.al.,1997). The Resource Based View (RBV) combines two perspectives, the internal analysis of phenomena within an organisation and an external analysis of the industry and its competitive environment (Collis and Montgomery, 1995). It goes beyond the Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis by integrating internal and external perspectives. The ability of an organisations resources to present competitive advantages could not be determine without taking into considerations the boarder competitive concept. Barney (1995) indicated that organisations resources and capabilities must be evaluated in terms of value, rarity, imitability or non-substitutability (VRINE model). The value of the resources and capabilities interacts with the market sources and will differ based on time and industry. The three fundamental market forces; scarcity, demand and appropriability determines the value of a resources and capabilities (Collis and Montgomery, 1995). In order to answer the question of value, organisation could identify whether the resources and capabilities are able to meet market demand. As for AirAsia, the organisation relies on its human resources and management capabilities wherein these two components have satisfied the value requirement as it has been able to meet the demand for the Low Cost Carrier (LCC) market. The resources and capabilities own by AirAsia are homogenous in the market however aspect such as work culture and innovative routes differs it from the competitors. In applying the RBV concept, AirAsia has a competitive parity based on its valuable and not rare resources and capabilities. Immitability is something generic in the airline in dustry as aircraft, fast turnarounds time and others are easily duplicate. One of AirAsias imitable characteristics is path dependency wherein a characteristics of resources is developed and/or accumulated through a unique series of time. AirAsias work culture of openness between employees as well as the leadership from its Chief Executive Officer is something have been built up over a period of time which is difficult to duplicate. Moreover, the high capital requirement for market entry is another factor that leads to difficulty to imitate the resources and capabilities. It is undeniable that the said resources and capability be imitated as competitors will identify the same however it will take time and meanwhile, AirAsia gain the competitive advantages. Having a control and exploiting the resources and capabilities provides competitive advantages to the organizations (Carpenter and Sanders, 2009). AirAsia has exploited it resources and capabilities which is shown in the financial performance. AirAsia has gradually increased its performance throughout the years. AirAsias s net profit for the 3rd quarter of 2009 totalled RM130 million ($38.4 million) which is sustained by rising passenger numbers and income from add-on services. The profit achieved was a turnaround from a RM466 million ($137 million) net loss in the same period last year (www.airasia.com). The fit of the strategy to current industry conditions The competitive environment consists of many factors that are particularly relevant to an organisations strategy. Analysing the external environment particularly the industry is a starting point for firms to develop a strategy. Porters five forces include the overall structure rather than focusing to any one element. However the forces are not stagnant which tendency to change may occur. AirAsia operates within the airline industry and forces that are driven in the industry would identify the strength and weaknesses of the organisation. There is potential market in the Asia for LCC due to the rapid economic and disposable incomes growth. Infrastructure such as high speed trains and highways has yet to meet the high standard level and therefore customers tend to choose the air as mode of transportation. Hence, threats of substitutes are low as the geographical structure of Asia has made air travel the viable, efficient and convenient mode of transportation. Looking into this scenario, AirAsia entered the airline industry concentrating on the LCC and noted that at the initial stage there were less rivalry but as the industry grows, the rivalry among established firms become higher partly due to price issues. AirAsias main competitors are Firefly, Tiger Airways and Jetstar Asia. Knowing the said changes, AirAsia applied the adaptation process (Hanan Freeman, 1984) by expanding its operation to long haul services to various destinations. Moreover, AirAsia realise the price is destructive and try to avoid direct price c ompetition and try to create a friendly competition environment. As there is positive growth in the airline industry, full service airline carriers have refocused its operation related to costs and yields as it is seen as a requirement to maintain profitability (Graham and Vowles, 2006). There is possibility of new entrance by other LCC which creates further competition in the industry. For example, Firefly set up by Malaysia Airline System Berhad is a part of LCC industry in Malaysia that has adapted AirAsias low cost concept. However, it would not be a threat to AirAsia as Hanan Freeman (1984) highlighted it is difficult to imitate as tacit amount of knowledge is required on the targeted firm. The high capital requirement and government barriers air service agreement can act as barriers to entry. Due to significant growth within the industry, demand for additional aircraft has increased and suppliers will be in a powerful position. It was reported that Asia accounts for 40% of new aircraft orders for Boeing and Airbus and seat capacity on LCC worldwide has more than doubled in the past four years (Shameem, 2006). Due to few players, Boeing and Airbus and lack of competition in the market, the bargaining power of suppliers are low. Consequently there is not much competition in terms of pricing occurring between the two companies so an airline carrier will have to accept an offer from one of the suppliers. The bargaining power for buyers is low as there is no room to bargain for cheaper tickets as AirAsia provides the lowest price compared to other carriers. The biggest threats for AirAsia are the rivalry and risk of entry with the existing and potential competitors. LCC business is viable and there is healthy profitability provided AirAsia continuously improves itself and is flexible in the challenging market. The sustainability of the differentiators Porter (1996) indicated that to outperform rivals, an organisation need to deliver greater value to customers or/and build comparative value at a lower cost. The airline industry is at the growing stage and therefore stiff competition from existing and new LCC is expected in the future. In order to sustain its competitive advantage, AirAsia needs to leverage its competency in creating cost advantages. At present, AirAsia differentiates by providing substantially low fares with no frills concept by offering innovative routes. Murray (1988) indicated that there is uncertainty for sustainable differentiation to be achieved through product innovation and suggested that the area that could be concentrated for the said differentiation is quality and service. While, Porter (1996) highlighted that positioning are successful based on activity system and simple consistency between each activity aligning with the organisation strategy. AirAsia builds it brand name by providing a good quality service at a low price. During inception, AirAsia focused on internal destinations and have further entered the international destinations. AirAsia X is differentiated by its long haul LCC as customers would not need to look at different carriers to reach different destinations at a lowest price. It is based on the same no frills service model wherein the price is 80% lower than its competitor together with additional services that requires customer to pay additional payment such as food, entertainment and others. AirAsia also seek to create excitement amongst their customers with the range of innovative and personalized service such as self check-in. Due to AirAsias success in the industry, competition might one to adapt the companys business model. However, AirAsia had some advantages over its competitors by the advantage of experience and its brand enjoyed good recognition. AirAsia gain from the first mover advantage which allows it to establish itself before competition perceive further in this low cost segment, apart from competition that already exists across segments (low cost vs full service carriers). AirAsia has the strength to lay down the rules and framework in the industry for business and operational suitability. Through AirAsia philosophy of Now Everyone Can Fly, AirAsia has embarked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. As Air Asia continuously strives to promote air travel, AirAsia also seek to create excitement amongst their guests with they range of innovative and personalized service. Moreover customer loyalty is build by the differentiation which could act as a defense against rivalry (Eng, 1994). Whether the elements of the strategy are consistent and aligned with the strategic position Strategy works as a driver in a firm in achieving goals and objectives (Carpenter and Sanders, 2009). AirAsias five strategy elements are as follows: Porter (1996) presented three generic strategies that an organisation could use to overcome the five forces and achieve competitive advantage. However, there were studies resulting that adapting one or more forms of competitive advantage will outperform better (Murray, 1988). In the LCC segment, cost is the competitive priority and it determines market position. In lieu of this, Airasia has applied the focused cost leadership strategy wherein it targets on specific markets; price sensitive customers as well as lowering its overall costs (Flouris and Walker, 2005). With the positive growth in the LCC, it will create opportunity to others to enter the market. Competition between carriers using the same business model will inevitably be intense. One of the major pitfall against attempting to differentiate is by trying to combine low cost and differentiation strategy by starting to add frills in its business model. However, by applying the said strategy, carriers have lost their source of competitive advantage by narrowing the strategic cost gap. Every frill or service adds to cost and reduced the strategic cost gap, thus curbing the flexibility to offer innovative price deals. Murray (1988) disagrees that cost structure is vital in relation to the output performance compared to the price sensitivity. Factors such as economy of scale and quality of management teams within the organization could be the benchmark for cost leadership. Under the cost leadership strategy, level of operation efficiency is vital as it assist in achieving cost advantages than the rivals by searching continuous areas for cost reduction along its value chain that leads to economies of scale (Eng, 1993). AirAsia increases its efficiency through increased route network and its operating activities by adapting cost optimising techniques such as quick turnaround times and maximizing of flight utilisation for its aircrafts (Shari, 2003). As the result from efficient operation, it minimizes the cost that is then passed on to customers so that affordable air travel can become a reality. In 2005, the cost per available seat mile (ASK) for Airasia was only 0.3 compared to the next lowest valu e from 0.6 being Firefly (www.airasia.com). AirAsia took advantage from the existence of e-commerce which is cheaper and easier technique in providing information about products and services. Furthermore, it gives a better and more convenient way of promoting the companys product and services. The cost related to web is very low compared to other methods like advertisement on television. AirAsia has taken advantage from this method to reduce the cost of operations that leads to operating on a low rate. Malaysia government has supported AirAsia through the opening of the LCC terminal in Kuala Lumpur International Airport which enhanced its competitive edge by reducing costs and better logistic planning (Euromonitor International, 2009). Competitors tend to know how big the market is and how good the opportunity is in Asia. Therefore, there is threat by competitors which could imitate AirAsias low cost base. Most of the competitors have the same concept of no frills and low price strategy and will continuously try to reduce its costs than AirAsia in order to gain sustainability in the market. The challenge for AirAsia is to reduce cost effectively which it is difficult for the competitors to copy. Possible issues associated with implementation Strategy formulation and implementation are interdependent with the objectives being a coherent set of strategy elements and implement levers (Carpenter and Sanders, 2009). In order to succeed in the LCC segment, AirAsia will need to maintain its low cost elements in their business design as it is critical to the long term success. The main reason is because the more gap between arises between the competiting airlines, the more flexibility will be available to offer lower price and gain market share. An extended route system will most certainly be a key differentiator and to sustain its competitive advantages, resources and capabilities need to be analysed further. Around the world, it has been observed that low cost airlines pursuing a generic business design have emerged as the most successful. Conclusion AA actual main strength was based in its innovative ways to keep the cost low which was hard to imitate. AirAsia has indicated that synergies between the internal and external factors could develop a competitive advantage. This has allowed AirAsia to positioned and be the market leader in the LCC. The brand name brand equity is a major strength that AirAsia must successfully capitalize. Bibliography Barney J.B. Looking Inside for Competitive Advantage (1995) Academy of Management Executive. 9(4) pp. 49-61 Carpenter, M.A., Sanders W.G. Strategic Management: A Dynamic Perspective Concepts and Cases (2009) Pearson International Edition. Collis, D. J.,Montgomery, C. A. Competing on Resources (1995) Harvard Business Review. pp. 118-128 Graham B., Vowles T.M. Carriers within Carriers: A Strategic Response to Low-Cost Airline Competition(2006) Transport Reviews, pp. 105-126 Porter M.E., What is Strategy (1996) Harvard Business School, pp. 61-78 Shameen A. AirAsia Takes Flights on Low Cost Carriers (September 26, 2006), Business Week Teece, D.J., Pisano G., Shuen, Amy. Dyanmic Capabilities and Strategic Management (1997) Strategic Management Journal. 18(7), pp. 509-533

Gherkin and Pomegranate Cultivation

Gherkin and Pomegranate Cultivation Abstract Horticulture is an important component of agriculture accounting for a very significant share in the Indian economy. Rising consumer income and changing lifestyles are creating bigger markets for high-value horticultural products in India as well as throughout the world. Among these, the most important high-value export products are fruits and vegetables. This study was conducted to analyze the comparative advantage and competitiveness of pomegranate and gherkin which are the important foreign exchange earner among fruit and vegetable crops exported from India. The primary data was collected from Tumkur and Bijapur district of Karnataka, India and secondary data was collected from concerned government institutions, APEDA and also from exporters of fruits and vegetables. The Policy Analysis Matrix (PAM) was selected as the analytical tool to analyse the export competitiveness, comparative advantage, and the degree of government interventions in the production and export of gherkin and pomegranate. The policy distortions were measured through indicators of PAM. Garret ranking technique was used to analyse the constraints in the production and export of the selected crops. EPC of Gherkin (0.5) and pomegranate (0.45) values which found to be less than one indicates that producers are not protected through policy interventions. Whereas DRC (0.27 0.28) and PCR (0.43 0.59) values of Gherkin and Pomegranate respectively shows positive, social as well as private profit which indicates that, India has a competitive and comparative advantage in their production. The result for Garret ranking in case of gherkin shows that skilled labour and lack of superior quality are the major constraints in production and export of gherkin respectively. In case of pomegranate non availability of skilled labour, high incidence of pest and diseases, lack of transportation facilities, high residual effect of pesticide are the major constrain in production and export. The overall result shows that the cultivation as well as export of gherkin and pomegranate is economically profitable and efficient. Key Words: Gherkin, Pomegranate, PAM, EPC and DRC List of Acronyms Variable Definition APEDA Agricultural and Processed Food Products Export Development Authority CIF Cost Insurance and Freight Crores 10 million DRC Domestic Resource Cost EPC Effective Protection Coefficient EU European Union FAOSTAT Food and Agriculture Organization Statistics FOB Free On Border FYM Farm Yard Manure ha Hectares HEIA Horticulture Export Improvement Association kg Kilogram MHA Million Hectare MT Million Tons NHB National Horticulture Board NPCI Nominal Protection Coefficient on Inputs NPCO Nominal Protection Coefficient on Outputs NPV Net Present Value PAM Policy Analysis Matrix PCR Private Cost Ratio INR Indian Rupees UAE United Arab Emirates UK United Kingdom UNCOMTRADE United Nations Commodity Trade Statistics UNFAO United Nations Food and Agriculture Organization USA United States of America 1. Introduction 1.1 Background Indian agriculture is vested with the herculean responsibility of feeding over more than one billion people. Out of total, 72% of Indias population live in rural areas, further three-fourth of the rural populations depend on agriculture and allied activities for their livelihoods. The present growth in agriculture in India is hassle with problems most importantly, agricultural growth slowed down to 2.1% between 1998-99 and 2004-05. It is largely due to a decline in the food grain sector that grew at merely 0.6%. Given the high dependence of the poor on agriculture, the stagnation in this sector is currently threatening to stall poverty reduction in India (Reddy, 2007). Given the present scenario, the immediate question to be addressed is how agricultural growth can be accelerated. The question can be answered through by diversifying the consumption pattern towards high value agricultural commodities in general and high value horticultural products in particular such as fruits and vegetables. In recent years there has been a great deal of interest among policymakers and trade analysts in the role of horticultural products as a principle means of agricultural diversification and foreign exchange earnings in developing countries. Horticultural products have high income elasticity of demand as income goes up the demand raises rapidly. It grows especially in middle and high income developing countries. As people are more cautious on health and nutrition, there is a paradigm shift from high fat, high cholesterol foods such as meat and live stock products to low fat and low cholesterol foods such as fruits and vegetables. As a result, the world has change d its attention towards high value agricultural products. Hence, it is crucial to be competitive in the world market to reap the potential gains of increased and growing world demand for horticultural products such as fruits and vegetables. Thus, the purpose of the present study attempts to evaluate the consequences of international trade and competitiveness of Indian horticulture with special reference to pomegranate and gherkin crops. In the recent past, these two crops got high export potential and earned good foreign exchange. 1.2 Studies on export of fruits and vegetables There are many studies related to export of horticultural crops especially fruits and vegetables from India. Chiniwar (2009) explained the numerous opportunities and challenges of the horticulture sector and observed that there is a tremendous potential for Indian pomegranates in the global market. He examined the growth of pomegranate exports from India. The study revealed that the growth of pomegranate exports from India is moderate in comparision to the potential for its exports. Tamanna et al. (1999) examined the export potential of selected fruits from India by using Nominal Protection Coefficient (NPC). The results indicate that the exports of Indian fruits are highly competitive in the world market. Nalini et al. (2008) observed that India has made tremendous progress in the export of cucumber and gherkin products during the past 15 years (1990-2005). The export has increased by about 129 times with an impressive annual compound growth rate of 37.46 percent, as against only 4. 38 percent in the world market. An increasing and high value of Revealed Comparative Advantage (RCA) and a positive and increasing value for Revealed Symmetric Comparative Advantage (RSCA) have indicated high potential for their export. One percent increase in volume of international trade in cucumber and gherkin may increase the demand from India by 5.96 percent. This indicates that India is highly competitive in the export of cucumber and gherkin. It has ample scope to further increase its export. Gulati et al. (1994) analyzed the export competitiveness of selected agricultural commodities and identified the constraints in the export of fresh fruits, vegetables, processed fruits and vegetables. The above studies are related to export performance, growth, and constraints of fruits and vegetables. Most of these studies focused on aspects pertaining to export of fruits and vegetables. There are no studies on export policy especially related to efficiency and comparative advantage in world market. Therefore, the aim of the present study is to analyze the export competitiveness of pomegranate and gherkin by using Policy Analysis Matrix (PAM). The study has a high scope because competitiveness has become a key issue in the international market for export development of fruits and vegetables. 1.3 Research objectives In the present study, the export competitiveness of high value horticultural crops of India is analyzed. To be very precise, the study analyzes the competitiveness of gherkin and pomegranate in the world market. It also compares the advantages and constraints in the export of these crops with the following objectives and proposed hypothesis, which will be tested based on the results and conclusion. Specific objectives To assess the export competitiveness of Gherkin and Pomegranate To examine the production and export constraints of Gherkin and Pomegranate Hypothesis Export of gherkin and pomegranate are competitive in international markets 1.4 Structure of the thesis The study contains the results of the analysis of export competitiveness of horticultural crops in India. In the present study, opportunities are analyzed, constraints in production and export of gherkins and pomegranates from India. We further analyze the competitiveness and comparative advantage of these two crops in international market. The detailed information of this analysis is discussed in the following sections of the study. The first section of the thesis gives us an introduction and background on the nature of the problem, facts on the dynamics and underlying causes diversifying the consumption pattern of high value horticultural commodities. Further, a brief overview of existing studies on Indian agricultural and horticultural growth, export performance, and constraints will be discussed. The research question is broken down into specific objectives and a possible hypothesis has been put forth. The second section of the thesis will give a general overview of fruit and vegetable scenario in the world as well as in India. The section also explains the importance of selected fruit and vegetable by considering production, export and foreign exchange earnings which will help us to understand the export competitiveness of these crops from India. The third section deals with methodological framework which deals with the concepts and competitiveness of high value horticultural crops from India focusing on the application of PAM model for the study. In the same chapter, the current literature and outline of the major definitions for competitiveness and comparative advantage are studied. The above proposed model will be used as a tool to address the research objectives followed by data description. Fourth section highlights the findings of the research from the proposed model using collected information on pomegranate and gherkin cultivation, and their export. Finally, the proposed hypothesis is tested and the results inferred. The final section summarizes the whole research findings and provides meaningful policy implications. 2. Scenario of fruits and vegetables in India and the world 2.1 World scenario of fruits and vegetables 2.1.1 High value agricultural production Rising consumer income and changing lifestyles are creating bigger markets for high value agricultural products throughout the world. Among these, the most important high value export sector is horticulture, especially fruits and vegetables. The growing markets for these products present an opportunity for the farmers of developing countries to diversify their production out of staple grains and raise their income. Annual growth rates on the order of 8 to 10 percent in high value agricultural products is promising development (Fig.1), as the production, processing and marketing of these products create a lot of needed employment in rural areas. The rapid growth in high value exports has been part of fundamental and broad reaching trend towards globalization of the agro food system. Dietary changes, trade reform and technical changes in the food industry have contributed to the growth of high value agriculture and trade (World Bank, 2008). 2.1.2 World production of fruit and vegetables The production of fruit and vegetables all over the world grew by 30 percent between 1980 to 1990 and by 56 percent between 1990 to 2003. Much of this growth occurred in China where production grew up by 134 percent in 1980 and climbed to 200 percent by 1990 (UNFAO 2003). At present the world production of fruits and vegetables reached to 512 MT and 946.7MT respectively (Table 1 5). Vegetables: China is currently the worlds largest producer of vegetables, with the production 448.9 MT with an area of 23.9 MHA (47%) (Table 1), whereas India is in the 2nd position with the production of 125.8 MT with an area of 7.8 MHA (13%) followed by USA (4%), Turkey (3%) etc (Indian Horticulture Database, 2008) (Fig.2). Among the vegetable crops gherkin is considered for the study as it is one of the most important vegetable all over the world. Table 2 shows the international production of cucumber and gherkin from different parts of the world during 2007-08. China, Turkey, Iran, Russia and USA are the world largest producers of cucumber and gherkin (Table 3), whereas India position in the production is 34th but it reached 1st (Table 3) and 55th (Table 4) position in export of provisionally preserved and fresh cucumber gherkin respectively. Table 1 Major vegetables producing countries in the world (2007-08) Country Area(000 ha) Production(000 MT) Productivity(MT/ha) China 23936 448983 19 India 7803 125887 16 USA 1333 38075 29 Turkey 996 24454 25 Russia 970 16516 17 Egypt 598 16041 27 Iran 641 15993 25 Italy 528 13587 26 Spain 379 12676 33 Japan 433 11938 28 Others 16957 222625 13 Total 54573 946774 Source: Indian Horticulture Database (2008) Table 2 International production of cucumber and gherkin (2007-08) Country Production (MT) Share (%) China 28062000 62.9 Turkey 1875919 4.21 Iran, Islamic republic 1720000 3.86 Russian federation 1410000 3.16 USA 920000 2.06 Ukraine 775000 1.74 Japan 634000 1.42 Egypt 615000 1.38 Indonesia 600000 1.34 Spain 510000 1.14 Mexico 500000 1.12 Poland 492000 1.10 Iraq 480000 1.08 Netherland 445000 1.00 India 120000 0.27 Others 5452024 12.22 World 44610943 100 Source: Author, FAO (2008) Table 3 Major exporting countries of fresh cucumber and gherkin (2007) Country Value (USD) Share (%) Spain 557088 30.13 Mexico 437369 23.65 Netherland 419824 22.70 Canada 81707 4.42 Germany 44437 2.40 Turkey 40300 2.18 Greece 38920 2.10 Iran 27768 1.50 Belgium 25361 1.37 USA 16313 0.88 India 235 0.01 Others 159815 8.64 World 1849137 Source: Data from Agricultural and Processed food products Export development Authority (APEDA), India. Table 4 Major exporting countries of preserved cucumber and gherkin Country Value (USD) Share (%) India 33476 49.39 China 16754 24.72 Turkey 4193 6.19 Netherlands 3397 5.01 Belgium 2670 3.94 Vietnam 40300 2.11 Sri Lanka 1003 1.48 Germany 925 1.37 Spain 596 0.88 USA 992 0.87 World 65040 Source: U.N COMTRADE (2007) Fruits: World fruit production has steadily risen for the past four years (see Appendix 3 ). Table 5 shows the largest fresh fruit producers from different countries during 2007-08. China is the worlds largest fruit producer, producing 19 percent of the world fruits. India ranks second in the list of world producer accounting 12 percent of the worlds production followed by Brazil, where 7 percent of the worlds fruit was grown. (Figure 3) As production is increasing in China at alarming rate compare to other top producing countries. Production growth almost averaged 6 percent per year in China, while production growth in India averaged 2.73 percent per year. The EU experienced the lower annual growth rate of 0.89 percent. Whereas, the production in USA and Brazil has been relatively constant over the period, with average annual growth rates of 0.61 percent for the former and 0.34 percent for the later. Other countries Mexico, South Africa and Chile have experienced slightly higher av erage annual production growth rates of 2.12, 2.56 and 1.3 percent respectively over the same period (FAOSTAT 2008). Among all fruits pomegranate is considered for the present study. Figure 4 shows India is the world largest producer of pomegranate with 900 MT (36%) followed by Iran (31%), Iraq (3%), USA (4%) etc. Over the years Indias export rate for pomegranate has grown steadily to worth of INR0.61 million (US$13741) in 2007-08 with the share of 1.2 percent (Table 6). Table 5 Major fruit producing countries in the world (2007-08) Country Area(000 ha) Production(000 MT) Productivity(MT/ha) China 9587 94418 10 India 5775 63503 11 Brazil 1777 36818 21 USA 1168 24962 21 Italy 1246 17891 14 Spain 1835 15293 8 Mexico 1100 15041 14 Turkey 1049 12390 12 Iran 1256 12102 10 Indonesia 846 11615 14 Others 22841 208036 9 Total 48481 512070 Source: FAO Indian Horticulture Database (2008) Table 6 Pomegranate export from different parts of the world (2007) Country Value (USD) Share (%) Thailand 172781 15.06 Spain 138911 12.11 Vietnam 84532 7.37 Mexico 67739 5.91 Netherlands 63858 5.57 Madagascar 53822 4.69 Israel 45219 3.94 Uzbekistan 44128 3.85 Colombia 40459 3.53 Azerbaijan 37977 3.31 France 36975 3.22 Germany 17750 1.55 India 13741 1.20 Others 309565 27.45 World 1127457 100 Source: Agricultural and Processed Food Products Export Development Authority (APEDA), India 2.2 Scenario of fruits and vegetables in India. Horticulture is an important component of agriculture accounting for a very significant share in the Indian economy. It is identified as one of the potential sector for harnessing Indias competitive advantage in international trade. Further it prepares India to achieve an overall trade target of 1% or more in the share of world trade. Meanwhile, making the country self-sufficient in the last few decades, horticulture has played a very significant role in earning foreign exchange through export. Horticultural crops cover approximately 8.5 percent of total cropped area (20 MHA) (Table 7) with annual production of 207 MT, and productivity of 10.3 MT per hectare during the year 2007-08 (FAO Indian Horticulture Database 2008). Among the horticultural crops fruits and vegetables play an important role, whereas exports of fruits and vegetables have increased over the years (Table 8). During 2004-05 export of fruits and vegetables was INR 13637.13 million as against INR 24116.57 million during 2006-07 (APEDA, 2008) Table 7 Area, production and productivity of horticultural crops in India Year Area (MHA) Production (MT) Productivity (MT/ha) ) 2001-02 16.6 145.8 8.8 2002-03 16.3 144.4 8.9 2003-04 19.2 153.3 21 2004-05 21.1 170.8 8.1 2005-06 18.7 182.8 9.8 2006-07 19.4 191.8 9.9 2007-08 20.1 207.0 10.3 Source: FAO Indian Horticulture Database (2008) Table 8 Export of horticultural produce in India Products 2004-05 2005-06 2006-07 Quantity Value Quantity Value Quantity Value Floriculture seeds 34496 2871 42659 3922 50048 7713 Fresh Fruits vegetables 1296530 13637 1465040 16587 1983873 24117 Processed fruits vegetables 325293 9614 501826 13595 549949 17316 Total 1656319 261227 2009525 341051 258387 491459 Source: APEDA, India Note: Qty: MT, value : Million INR Vegetables: In vegetable production, India is next to China with a production of 125.8 million tonnes from 7.8 million hectares with a share of 13 percent in relation to world production (Table 9). The per capital consumption of vegetables is 120 grams per day (APEDA 2009). In case of Fresh vegetable Indias export has been increased from INR 433.14 Crore in 2006-07 to Rs 489.49 Crore in 2007-08. Major Export Destinations of these vegetables are UAE, UK, Nepal, and Saudi Arabia. (APEDA, 2009) Table 9 Area, production and productivity of vegetable crops in India Year Area (MHA) Production (MT) Productivity (MT/ha) ) 2001-02 6156 88622 14.4 2002-03 6092 84815 13.9 2003-04 6082 88334 14.5 2004-05 6744 101246 15.0 2005-06 7213 111399 15.4 2006-07 7584 115011 15.2 2007-08 7803 125887 16.1 Source: FAO Indian Horticulture Database (2008) Among all vegetables gherkin is considered for the present study due to following reasons. Indias export of gherkin has been steadily increased since 1997-98. It accounts for 24,490 tonnes of gherkins having an export potential of INR 50.27 crore as against 35,242 tonnes worth of INR 69.86 crore in 1999-2000 (Venkatesh, 2003). In recent year gherkin export has been increased to 61.5 million tonnes with a trade value of INR1465.5 million during 2007-08 (UNFAO Export Data, 2009). 2.2.1 Production and export importance of gherkin in India Gherkin crop is being selected for the present study. It is regarded as HEIA crop especially a hybrid crop. Gherkin cultivation and processing started in India in the early 90s and presently cultivated over 19,500 acres in the three southern states of Karnataka, Tamil Nadu and Andhra Pradesh. Although gherkin can grow virtually in any part of the country, the ideal conditions required for growth prevail in these three states where the growing season extends throughout the year. It requires adequate water and temperature between 15-36 degree centigrade and the right type of soil. The crop takes 85 days to reach the required maturity level. Productivity is approximately four to five tonnes per acre and the best months are from February to March followed by June to August. India is a major exporter of provisionally preserved gherkin. Table 10 11 shows the cucumber and gherkin export from India. In India, Karnataka stands first in export, where cultivation is steadily growing since 2001 -02 accounting for a worth of INR 1200 million. During 2006-07 gherkins accounts to INR 3133 million which has been exported (Table 12). Table 10 Cucumber and gherkin exports from India (2007-08) Country Value( Million INR) Quantity (Tonnes) Share (%) ) UAE 1.96 142.75 17.55 Bangladesh 1.92 290.00 17.17 Netherland 1.78 93.10 15.92 Russia 1.66 83.50 14.91 Estonia 0.80 43.94 7.17 Nepal 0.75 74.42 6.75 Oman 0.75 70.00 6.74 Spain 0.55 31.82 4.95 France 0.47 20.21 4.27 Others 0.51 26.42 4.56 Total 11.20 876.18 100 Source: Gherkin and Pomegranate Cultivation Gherkin and Pomegranate Cultivation Abstract Horticulture is an important component of agriculture accounting for a very significant share in the Indian economy. Rising consumer income and changing lifestyles are creating bigger markets for high-value horticultural products in India as well as throughout the world. Among these, the most important high-value export products are fruits and vegetables. This study was conducted to analyze the comparative advantage and competitiveness of pomegranate and gherkin which are the important foreign exchange earner among fruit and vegetable crops exported from India. The primary data was collected from Tumkur and Bijapur district of Karnataka, India and secondary data was collected from concerned government institutions, APEDA and also from exporters of fruits and vegetables. The Policy Analysis Matrix (PAM) was selected as the analytical tool to analyse the export competitiveness, comparative advantage, and the degree of government interventions in the production and export of gherkin and pomegranate. The policy distortions were measured through indicators of PAM. Garret ranking technique was used to analyse the constraints in the production and export of the selected crops. EPC of Gherkin (0.5) and pomegranate (0.45) values which found to be less than one indicates that producers are not protected through policy interventions. Whereas DRC (0.27 0.28) and PCR (0.43 0.59) values of Gherkin and Pomegranate respectively shows positive, social as well as private profit which indicates that, India has a competitive and comparative advantage in their production. The result for Garret ranking in case of gherkin shows that skilled labour and lack of superior quality are the major constraints in production and export of gherkin respectively. In case of pomegranate non availability of skilled labour, high incidence of pest and diseases, lack of transportation facilities, high residual effect of pesticide are the major constrain in production and export. The overall result shows that the cultivation as well as export of gherkin and pomegranate is economically profitable and efficient. Key Words: Gherkin, Pomegranate, PAM, EPC and DRC List of Acronyms Variable Definition APEDA Agricultural and Processed Food Products Export Development Authority CIF Cost Insurance and Freight Crores 10 million DRC Domestic Resource Cost EPC Effective Protection Coefficient EU European Union FAOSTAT Food and Agriculture Organization Statistics FOB Free On Border FYM Farm Yard Manure ha Hectares HEIA Horticulture Export Improvement Association kg Kilogram MHA Million Hectare MT Million Tons NHB National Horticulture Board NPCI Nominal Protection Coefficient on Inputs NPCO Nominal Protection Coefficient on Outputs NPV Net Present Value PAM Policy Analysis Matrix PCR Private Cost Ratio INR Indian Rupees UAE United Arab Emirates UK United Kingdom UNCOMTRADE United Nations Commodity Trade Statistics UNFAO United Nations Food and Agriculture Organization USA United States of America 1. Introduction 1.1 Background Indian agriculture is vested with the herculean responsibility of feeding over more than one billion people. Out of total, 72% of Indias population live in rural areas, further three-fourth of the rural populations depend on agriculture and allied activities for their livelihoods. The present growth in agriculture in India is hassle with problems most importantly, agricultural growth slowed down to 2.1% between 1998-99 and 2004-05. It is largely due to a decline in the food grain sector that grew at merely 0.6%. Given the high dependence of the poor on agriculture, the stagnation in this sector is currently threatening to stall poverty reduction in India (Reddy, 2007). Given the present scenario, the immediate question to be addressed is how agricultural growth can be accelerated. The question can be answered through by diversifying the consumption pattern towards high value agricultural commodities in general and high value horticultural products in particular such as fruits and vegetables. In recent years there has been a great deal of interest among policymakers and trade analysts in the role of horticultural products as a principle means of agricultural diversification and foreign exchange earnings in developing countries. Horticultural products have high income elasticity of demand as income goes up the demand raises rapidly. It grows especially in middle and high income developing countries. As people are more cautious on health and nutrition, there is a paradigm shift from high fat, high cholesterol foods such as meat and live stock products to low fat and low cholesterol foods such as fruits and vegetables. As a result, the world has change d its attention towards high value agricultural products. Hence, it is crucial to be competitive in the world market to reap the potential gains of increased and growing world demand for horticultural products such as fruits and vegetables. Thus, the purpose of the present study attempts to evaluate the consequences of international trade and competitiveness of Indian horticulture with special reference to pomegranate and gherkin crops. In the recent past, these two crops got high export potential and earned good foreign exchange. 1.2 Studies on export of fruits and vegetables There are many studies related to export of horticultural crops especially fruits and vegetables from India. Chiniwar (2009) explained the numerous opportunities and challenges of the horticulture sector and observed that there is a tremendous potential for Indian pomegranates in the global market. He examined the growth of pomegranate exports from India. The study revealed that the growth of pomegranate exports from India is moderate in comparision to the potential for its exports. Tamanna et al. (1999) examined the export potential of selected fruits from India by using Nominal Protection Coefficient (NPC). The results indicate that the exports of Indian fruits are highly competitive in the world market. Nalini et al. (2008) observed that India has made tremendous progress in the export of cucumber and gherkin products during the past 15 years (1990-2005). The export has increased by about 129 times with an impressive annual compound growth rate of 37.46 percent, as against only 4. 38 percent in the world market. An increasing and high value of Revealed Comparative Advantage (RCA) and a positive and increasing value for Revealed Symmetric Comparative Advantage (RSCA) have indicated high potential for their export. One percent increase in volume of international trade in cucumber and gherkin may increase the demand from India by 5.96 percent. This indicates that India is highly competitive in the export of cucumber and gherkin. It has ample scope to further increase its export. Gulati et al. (1994) analyzed the export competitiveness of selected agricultural commodities and identified the constraints in the export of fresh fruits, vegetables, processed fruits and vegetables. The above studies are related to export performance, growth, and constraints of fruits and vegetables. Most of these studies focused on aspects pertaining to export of fruits and vegetables. There are no studies on export policy especially related to efficiency and comparative advantage in world market. Therefore, the aim of the present study is to analyze the export competitiveness of pomegranate and gherkin by using Policy Analysis Matrix (PAM). The study has a high scope because competitiveness has become a key issue in the international market for export development of fruits and vegetables. 1.3 Research objectives In the present study, the export competitiveness of high value horticultural crops of India is analyzed. To be very precise, the study analyzes the competitiveness of gherkin and pomegranate in the world market. It also compares the advantages and constraints in the export of these crops with the following objectives and proposed hypothesis, which will be tested based on the results and conclusion. Specific objectives To assess the export competitiveness of Gherkin and Pomegranate To examine the production and export constraints of Gherkin and Pomegranate Hypothesis Export of gherkin and pomegranate are competitive in international markets 1.4 Structure of the thesis The study contains the results of the analysis of export competitiveness of horticultural crops in India. In the present study, opportunities are analyzed, constraints in production and export of gherkins and pomegranates from India. We further analyze the competitiveness and comparative advantage of these two crops in international market. The detailed information of this analysis is discussed in the following sections of the study. The first section of the thesis gives us an introduction and background on the nature of the problem, facts on the dynamics and underlying causes diversifying the consumption pattern of high value horticultural commodities. Further, a brief overview of existing studies on Indian agricultural and horticultural growth, export performance, and constraints will be discussed. The research question is broken down into specific objectives and a possible hypothesis has been put forth. The second section of the thesis will give a general overview of fruit and vegetable scenario in the world as well as in India. The section also explains the importance of selected fruit and vegetable by considering production, export and foreign exchange earnings which will help us to understand the export competitiveness of these crops from India. The third section deals with methodological framework which deals with the concepts and competitiveness of high value horticultural crops from India focusing on the application of PAM model for the study. In the same chapter, the current literature and outline of the major definitions for competitiveness and comparative advantage are studied. The above proposed model will be used as a tool to address the research objectives followed by data description. Fourth section highlights the findings of the research from the proposed model using collected information on pomegranate and gherkin cultivation, and their export. Finally, the proposed hypothesis is tested and the results inferred. The final section summarizes the whole research findings and provides meaningful policy implications. 2. Scenario of fruits and vegetables in India and the world 2.1 World scenario of fruits and vegetables 2.1.1 High value agricultural production Rising consumer income and changing lifestyles are creating bigger markets for high value agricultural products throughout the world. Among these, the most important high value export sector is horticulture, especially fruits and vegetables. The growing markets for these products present an opportunity for the farmers of developing countries to diversify their production out of staple grains and raise their income. Annual growth rates on the order of 8 to 10 percent in high value agricultural products is promising development (Fig.1), as the production, processing and marketing of these products create a lot of needed employment in rural areas. The rapid growth in high value exports has been part of fundamental and broad reaching trend towards globalization of the agro food system. Dietary changes, trade reform and technical changes in the food industry have contributed to the growth of high value agriculture and trade (World Bank, 2008). 2.1.2 World production of fruit and vegetables The production of fruit and vegetables all over the world grew by 30 percent between 1980 to 1990 and by 56 percent between 1990 to 2003. Much of this growth occurred in China where production grew up by 134 percent in 1980 and climbed to 200 percent by 1990 (UNFAO 2003). At present the world production of fruits and vegetables reached to 512 MT and 946.7MT respectively (Table 1 5). Vegetables: China is currently the worlds largest producer of vegetables, with the production 448.9 MT with an area of 23.9 MHA (47%) (Table 1), whereas India is in the 2nd position with the production of 125.8 MT with an area of 7.8 MHA (13%) followed by USA (4%), Turkey (3%) etc (Indian Horticulture Database, 2008) (Fig.2). Among the vegetable crops gherkin is considered for the study as it is one of the most important vegetable all over the world. Table 2 shows the international production of cucumber and gherkin from different parts of the world during 2007-08. China, Turkey, Iran, Russia and USA are the world largest producers of cucumber and gherkin (Table 3), whereas India position in the production is 34th but it reached 1st (Table 3) and 55th (Table 4) position in export of provisionally preserved and fresh cucumber gherkin respectively. Table 1 Major vegetables producing countries in the world (2007-08) Country Area(000 ha) Production(000 MT) Productivity(MT/ha) China 23936 448983 19 India 7803 125887 16 USA 1333 38075 29 Turkey 996 24454 25 Russia 970 16516 17 Egypt 598 16041 27 Iran 641 15993 25 Italy 528 13587 26 Spain 379 12676 33 Japan 433 11938 28 Others 16957 222625 13 Total 54573 946774 Source: Indian Horticulture Database (2008) Table 2 International production of cucumber and gherkin (2007-08) Country Production (MT) Share (%) China 28062000 62.9 Turkey 1875919 4.21 Iran, Islamic republic 1720000 3.86 Russian federation 1410000 3.16 USA 920000 2.06 Ukraine 775000 1.74 Japan 634000 1.42 Egypt 615000 1.38 Indonesia 600000 1.34 Spain 510000 1.14 Mexico 500000 1.12 Poland 492000 1.10 Iraq 480000 1.08 Netherland 445000 1.00 India 120000 0.27 Others 5452024 12.22 World 44610943 100 Source: Author, FAO (2008) Table 3 Major exporting countries of fresh cucumber and gherkin (2007) Country Value (USD) Share (%) Spain 557088 30.13 Mexico 437369 23.65 Netherland 419824 22.70 Canada 81707 4.42 Germany 44437 2.40 Turkey 40300 2.18 Greece 38920 2.10 Iran 27768 1.50 Belgium 25361 1.37 USA 16313 0.88 India 235 0.01 Others 159815 8.64 World 1849137 Source: Data from Agricultural and Processed food products Export development Authority (APEDA), India. Table 4 Major exporting countries of preserved cucumber and gherkin Country Value (USD) Share (%) India 33476 49.39 China 16754 24.72 Turkey 4193 6.19 Netherlands 3397 5.01 Belgium 2670 3.94 Vietnam 40300 2.11 Sri Lanka 1003 1.48 Germany 925 1.37 Spain 596 0.88 USA 992 0.87 World 65040 Source: U.N COMTRADE (2007) Fruits: World fruit production has steadily risen for the past four years (see Appendix 3 ). Table 5 shows the largest fresh fruit producers from different countries during 2007-08. China is the worlds largest fruit producer, producing 19 percent of the world fruits. India ranks second in the list of world producer accounting 12 percent of the worlds production followed by Brazil, where 7 percent of the worlds fruit was grown. (Figure 3) As production is increasing in China at alarming rate compare to other top producing countries. Production growth almost averaged 6 percent per year in China, while production growth in India averaged 2.73 percent per year. The EU experienced the lower annual growth rate of 0.89 percent. Whereas, the production in USA and Brazil has been relatively constant over the period, with average annual growth rates of 0.61 percent for the former and 0.34 percent for the later. Other countries Mexico, South Africa and Chile have experienced slightly higher av erage annual production growth rates of 2.12, 2.56 and 1.3 percent respectively over the same period (FAOSTAT 2008). Among all fruits pomegranate is considered for the present study. Figure 4 shows India is the world largest producer of pomegranate with 900 MT (36%) followed by Iran (31%), Iraq (3%), USA (4%) etc. Over the years Indias export rate for pomegranate has grown steadily to worth of INR0.61 million (US$13741) in 2007-08 with the share of 1.2 percent (Table 6). Table 5 Major fruit producing countries in the world (2007-08) Country Area(000 ha) Production(000 MT) Productivity(MT/ha) China 9587 94418 10 India 5775 63503 11 Brazil 1777 36818 21 USA 1168 24962 21 Italy 1246 17891 14 Spain 1835 15293 8 Mexico 1100 15041 14 Turkey 1049 12390 12 Iran 1256 12102 10 Indonesia 846 11615 14 Others 22841 208036 9 Total 48481 512070 Source: FAO Indian Horticulture Database (2008) Table 6 Pomegranate export from different parts of the world (2007) Country Value (USD) Share (%) Thailand 172781 15.06 Spain 138911 12.11 Vietnam 84532 7.37 Mexico 67739 5.91 Netherlands 63858 5.57 Madagascar 53822 4.69 Israel 45219 3.94 Uzbekistan 44128 3.85 Colombia 40459 3.53 Azerbaijan 37977 3.31 France 36975 3.22 Germany 17750 1.55 India 13741 1.20 Others 309565 27.45 World 1127457 100 Source: Agricultural and Processed Food Products Export Development Authority (APEDA), India 2.2 Scenario of fruits and vegetables in India. Horticulture is an important component of agriculture accounting for a very significant share in the Indian economy. It is identified as one of the potential sector for harnessing Indias competitive advantage in international trade. Further it prepares India to achieve an overall trade target of 1% or more in the share of world trade. Meanwhile, making the country self-sufficient in the last few decades, horticulture has played a very significant role in earning foreign exchange through export. Horticultural crops cover approximately 8.5 percent of total cropped area (20 MHA) (Table 7) with annual production of 207 MT, and productivity of 10.3 MT per hectare during the year 2007-08 (FAO Indian Horticulture Database 2008). Among the horticultural crops fruits and vegetables play an important role, whereas exports of fruits and vegetables have increased over the years (Table 8). During 2004-05 export of fruits and vegetables was INR 13637.13 million as against INR 24116.57 million during 2006-07 (APEDA, 2008) Table 7 Area, production and productivity of horticultural crops in India Year Area (MHA) Production (MT) Productivity (MT/ha) ) 2001-02 16.6 145.8 8.8 2002-03 16.3 144.4 8.9 2003-04 19.2 153.3 21 2004-05 21.1 170.8 8.1 2005-06 18.7 182.8 9.8 2006-07 19.4 191.8 9.9 2007-08 20.1 207.0 10.3 Source: FAO Indian Horticulture Database (2008) Table 8 Export of horticultural produce in India Products 2004-05 2005-06 2006-07 Quantity Value Quantity Value Quantity Value Floriculture seeds 34496 2871 42659 3922 50048 7713 Fresh Fruits vegetables 1296530 13637 1465040 16587 1983873 24117 Processed fruits vegetables 325293 9614 501826 13595 549949 17316 Total 1656319 261227 2009525 341051 258387 491459 Source: APEDA, India Note: Qty: MT, value : Million INR Vegetables: In vegetable production, India is next to China with a production of 125.8 million tonnes from 7.8 million hectares with a share of 13 percent in relation to world production (Table 9). The per capital consumption of vegetables is 120 grams per day (APEDA 2009). In case of Fresh vegetable Indias export has been increased from INR 433.14 Crore in 2006-07 to Rs 489.49 Crore in 2007-08. Major Export Destinations of these vegetables are UAE, UK, Nepal, and Saudi Arabia. (APEDA, 2009) Table 9 Area, production and productivity of vegetable crops in India Year Area (MHA) Production (MT) Productivity (MT/ha) ) 2001-02 6156 88622 14.4 2002-03 6092 84815 13.9 2003-04 6082 88334 14.5 2004-05 6744 101246 15.0 2005-06 7213 111399 15.4 2006-07 7584 115011 15.2 2007-08 7803 125887 16.1 Source: FAO Indian Horticulture Database (2008) Among all vegetables gherkin is considered for the present study due to following reasons. Indias export of gherkin has been steadily increased since 1997-98. It accounts for 24,490 tonnes of gherkins having an export potential of INR 50.27 crore as against 35,242 tonnes worth of INR 69.86 crore in 1999-2000 (Venkatesh, 2003). In recent year gherkin export has been increased to 61.5 million tonnes with a trade value of INR1465.5 million during 2007-08 (UNFAO Export Data, 2009). 2.2.1 Production and export importance of gherkin in India Gherkin crop is being selected for the present study. It is regarded as HEIA crop especially a hybrid crop. Gherkin cultivation and processing started in India in the early 90s and presently cultivated over 19,500 acres in the three southern states of Karnataka, Tamil Nadu and Andhra Pradesh. Although gherkin can grow virtually in any part of the country, the ideal conditions required for growth prevail in these three states where the growing season extends throughout the year. It requires adequate water and temperature between 15-36 degree centigrade and the right type of soil. The crop takes 85 days to reach the required maturity level. Productivity is approximately four to five tonnes per acre and the best months are from February to March followed by June to August. India is a major exporter of provisionally preserved gherkin. Table 10 11 shows the cucumber and gherkin export from India. In India, Karnataka stands first in export, where cultivation is steadily growing since 2001 -02 accounting for a worth of INR 1200 million. During 2006-07 gherkins accounts to INR 3133 million which has been exported (Table 12). Table 10 Cucumber and gherkin exports from India (2007-08) Country Value( Million INR) Quantity (Tonnes) Share (%) ) UAE 1.96 142.75 17.55 Bangladesh 1.92 290.00 17.17 Netherland 1.78 93.10 15.92 Russia 1.66 83.50 14.91 Estonia 0.80 43.94 7.17 Nepal 0.75 74.42 6.75 Oman 0.75 70.00 6.74 Spain 0.55 31.82 4.95 France 0.47 20.21 4.27 Others 0.51 26.42 4.56 Total 11.20 876.18 100 Source: