The Introduction And Background Of Sime Darby Finance Essay

The Introduction And Background Of Sime Darby Finance Essay The Sime Darby in 1910 got the name from two European business partners by name; William Sime and Henry Darby. William Sime, a traveler and adventurer from Scotland, ventured to Malaysia when he was in his late 30s. Sime Darby Berhad is the largest conglomerate in Malaysia and one of the largest in Southeast Asia . Within its territory are more than 270 operating companies in 23 countries, while foreign operations in Hong Kong of which account for 25% of revenues, Singapore (14 %), and Australia (11%). The company generates 38 percent of its revenues domestically. Its broadly diversified activities include a wide range of industries, with the core businesses being plantations including oil palm and the companys original business, rubber, tire manufacturing, heavy equipment and motor vehicle distribution, property development, power generation, and engineering services. Natural rubber synthetic rubber was still being developed and had just been introduced to the country from Brazil. Sime and other entrepreneurs at the time recognized that the climate of Malaysias jungle region was similar to that of Brazils. Therefore, rubber could just as easily be grown in that country and sold not only in Malaysia but throughout Southeast Asia and the world. However, Sime Darby encountered opposition to its venture from locals, who were wary of outsiders coming in to operate a plantation in Malacca, in order to overcome this, Sime and Darby forged friendships with several members of the Chinese business community. The company expanded, becoming a manager for owners of other plantations and then moving into the trading end of the industry. Sime set up a branch office in Singapore in 1915 and shortly thereafter established a marketing office in London. Demand for rubber eventually outstripped Sime Darbys production capacity, and by the late 1920s the company found it necessary to clear more jungle. To do so, Sime Darby purchased Sarawak Trading Company in 1929. Sarawak (later renamed Tractors Malaysia) held the franchise for Caterpillar heavy earthmoving equipment. That important purchase signaled Sime Darbys expansion into the heavy equipment business, which would eventually become a major component of its expansive network. In 1936 the companys head office was relocated from Malacca to Singapore. Sime Darby made a fortune in the global rubber industry during the 1920s and 1930s. Growth in the industry began to fade, however, as natural rubber was gradually supplanted by synthetic rubber. Sales of natural rubber boomed during World War II as warring nations purchased all available supplies. The war, however, also led to significant advancements in synthetic rubber technology. A good deal of it was used to acquire other companies, thereby expanding Sime Darbys reach into several other industries. Much of Sime Darbys success during that period was attributable to its acquisition of the giant Seafield Estate in 1971 and the establishment of Consolidated Plantations Berhad that same year. Through Consolidated Plantations, which became the companys main plantation subsidiary, Sime Darby became a leading force in the regions thriving agricultural sector. In addition to growing the oil palms and cocoa, the company began processing the crops into finished products for sale throughout the world. As its sales and profits spiraled upward during the early and mid-1970s, Sime Darby became a shiny feather in Britains cap. To the surprise and chagrin of the British stockholders, however, the company was wrested from their control by the Malaysian government late in 1976. The intriguing events leading up to the takeover began in the early 1970s. During that time, Sime Darbys chief executive, Denis Pinder, began investing the companys cash in new subsidiaries throughout the world. The companys stock price soared as Sime Darbys sales spiraled upward. At the same time, some observers charged that Sime Darby was engaged in corrupt business practices (with critics coining the phrase Slime Darby). Allegations of corruption were confirmed in the eyes of some detractors when, in 1973, Darbys outside auditor was found stabbed to death in his bathtub. The Singapore police ruled the death a suicide, but Pinder still ended up in prison on misdemeanor charges. Pinders successor took up where he left off, investing in numerous ventures, most of which were located in Europe. Unfortunately, many of those investments quickly soured. Some Malaysians felt that Sime Darby was taking profits from its successful domestic operations and investing them unwisely overseas. So, in 1976 the Malaysian government trading office bought up Sime Darby shares on the London stock exchange. It effectively gained control of the company and installed a board made up mostly of Asians. Also in 1976, Asian and British board members were able to agree that Tun Tan Chen Locks son, Tun Tan Siew Sin, would be an acceptable replacement as chairman of Sime Darbys board. In 1978 Sime Darby was reincorporated in Malaysia as Sime Darby Berhad. Its headquarters was moved to Kuala Lumpur the following year. Staggering in the Early 1980s; Rebounding in the Late 1980s and Early 1990s Sime Darby jettisoned some of its poorly performing assets during the late 1970s and early 1980s under Locks leadership. But it also continued investing in new ventures. It purchased the tire-making operations of B.F. Goodrich Philippines in 1981, for example, and secured the franchise rights to sell Apple Computers in southeast Asia in 1982. The addition of B.F. Goodrich Philippines marked the companys entrance into the tire manufacturing sector; also in 1981 came the establishment of Sime Darby International Tire Company, which in 1988 was renamed Sime Darby Pilipinas, Inc. In 1984 the company purchased a large stake in a Malaysian real estate development company, United Estates Berhad, and used it to begin developing plantation lands. This company later was renamed Sime UEP Properties Berhad. In Malaysia, Sime Darby acquired the franchises for BMW, Ford, and Land Rover vehicles. By the early 1980s Sime Darbys push to diversify had given it a place in almost every industry, from agricultural and manufacturing to finance and real estate. Although it did diversify into heavy equipment, real estate, and insurance businesses, new management also plowed significant amounts of cash into the companys traditional commodity and plantation operations. Sime Darby became a favorite of investors looking for a safe bet. Indeed, the mammoth enterprise tended to minimize risks after the investment mistakes of the early 1970s and seemed content to operate as a slow-growth multinational behemoth that could withstand any market downturns. Even if something did go wrong, the company had a war chest of nearly a half billion U.S. dollars from which it could draw. Unfortunately, Sime Darbys staid strategy negatively impacted its bottom line. Sales dipped to M $2.78 billion in 1992 before plunging to M$2.17 billion in 1983. Sime Darby lumbered through the mid-1980s with annual sales of less than M$2.5 billion, and net income skidded from about M$100 million in the early 1980s to a low M$59 million in 1987. To turn things around, Sime Darbys board promoted Tunku Ahmad Yahaya to chief executive. Ahmad was a veteran of the companys executive ranks and was a favorite nephew of Malaysias first prime minister, Tunku Abdul Rahman. Under Ahmads direction, the giant corporation began a slow turnaround. Significantly, Ahmad was instrumental in luring Tun Ismail to Sime Darbys board. Ismail was a highly influential central bank governor and the chairman of Sime Darbys biggest shareholder. Ismail became nonexecutive chairman of the company following the death of Tun Tan Siew Sin in 1988. During the late 1980s and early 1990s Ahmad invested much of Sime Darbys cash hoard into a bevy of new companies and ventures. Sime became a relatively big player in the global reinsurance business, for example, and tried to boost its activities related to heavy equipment and vehicle manufacturing. Most notably, Sime began pouring millions of dollars into property and tourism in key growth areas of Malaysia in an effort to get in on the development and tourism boom that began in that nation in the late 1980s. The success of that division prompted the company to invest as well in tourism overseas. Through its UEP subsidiary, for instance, Sime Darby bought a full-service resort with condominiums in Florida (Sandestin Resorts) and a hotel in Australia, among other enterprises. As the company dumped its cash into expansion and diversification, sales and profits bolted. Revenues climbed from M$2.53 billion in 1987 to M$4.98 billion in 1990 to M$6.20 billion in 1992. During the same perio d, net income soared from M$85 million to M$353 million. Sime Darby realized a stunning 65 percent average annual growth in earnings during the late 1980s and early 1990s. Despite its gains, though, critics charged that the company had concentrated too heavily on traditional commodity industries and had failed to move into the 1990s with the rest of Malaysia. In fact, Sime Darby continued to garner about 43 percent of its sales from commodity trading activities in 1993 and only 18 percent from manufacturing. The rest came from heavy equipment distribution, insurance, and its property/tourism holdings. Although building strength in those businesses had added to the companys sales and profits during the late 1980s and early 1990s, the strategy had caused Sime Darby to fall behind more progressive holding companies in the region that were participating in booming high-tech, gaming, brokering, and manufacturing sectors. Many company insiders believed that Sime Darby would have to eliminate its heavy reliance on commodity industries if it wante d to sustain long-term growth. The Crisis The companys stock price began to fall in 1993 and its rapid revenue and profit growth began to subside in comparison with late 1980s levels. In 1993 Ahmad stepped back from control of the company when he named Nik Mohamed Nik Yaacob to serve under him as chief executive. Among Mohameds first moves was to initiate the merger of the companys plantation assets, organized as Consolidated Plantations, and the parent company, The company also bolstered its regional insurance business in 1993 by joining forces with AXA of France for its insurance operations in Malaysia and Singapore. These efforts signaled an end to the companys historical emphasis on commodities and reflected Mohameds desires to increase activity in manufacturing, high-tech, financial services, and other fast-growth businesses and reduce Sime Darbys bureaucracy. The turn around after the crisis The company began increasing investments in businesses such as power generation, oil and gas, and heavy equipment exporting. In heavy equipment, Sime Darby bought the Australian distributor of Caterpillar equipment, Hastings Deering (Australia) Ltd., in 1993. In power generation, a key move came in 1994 when Sime Darby took a 40 percent interest in Port Dickson Power Sdn. Bhd., an independent power producer in Malaysia. That same year, the company acquired U.K.-based Lec Refrigeration plc, which was involved in the manufacturing, marketing, and servicing of refrigeration equipment and related products. At the same time, Mohamed worked to absorb the flurry of acquisitions conducted during the previous several years and streamline the company into some sort of cohesive whole. Despite restructuring activities, Sime Darby managed to boost sales to US$3.15 billion in 1994, about US$186 million of which was netted as income. In 1995 Sime Darby stepped up its acquisition drive through the purchase of a controlling 60.4 percent interest in United Malayan Banking Corporation from Datuk Keramat Holdings Berhad. The US$520 million purchase deepened the companys involvement in the countrys fast-growing financial services sector. United Malayan, which was the fourth largest bank in Malaysia in terms of assets, soon was reorganized as Sime Bank Berhad, with the companys brokerage arm becoming a subsidiary of Sime Bank under the name Sime Securities Sdn. Bhd. For the fiscal year ending in June 1997 Sime Darby posted record net income of M$835.8 million (US$322.9 million) on record revenues of M$13.24 billion (US$4.35 billion). Sime Bank and SimeSecurities played a key role in these stellar results (accounting for 30 percent of pretax earnings), but the eruption of the Asian financial crisis in July 1997 quickly proved that the acquisition of United Malayan had been ill-timed, if not also ill-advised. The severity of the crisis in Malaysia, which included a steep decline in the Malaysian stock market and a sharp depreciation of the ringgit (the nations currency), led Sime Bank to post the largest loss in Malaysian banking historyM$1.6 billion (US$431 million) for the six months to December 1997. In turn, Sime Darby posted its first loss in decades for the same six-month period, a loss of M$676.2 million ($172.7 million). With other Sime Darby units being hit hard by the crisis as well, the company posted the first full-year loss in its clo se to 90-year history in the 1998 fiscal year, a net loss of M$540.9 million (US$131 million). Subsequently ,it beat a hasty retreat from its aggressive expansion, determining that the prudent course would be a return to the companys core areas: plantations, property development, tire manufacturing, heavy equipment and motor vehicle distribution, and power generation. In June 1999 Sime Darby sold Sime Bank and its SimeSecurities subsidiary to Rashid Hussain, who merged it with RHB Bank to form the second largest commercial bank in Malaysia. During the 1999 fiscal year, the company also sold Sandestin Resorts for US$131 million. In 1999,it returned to the black with net earnings of M$821.8 million (US$216.3 million) on revenues of M$9.91 billion (US$2.61 billion). A further pull-back from the financial services sector came in March 2000 when Sime Darby sold its interest in Sime AXA, its insurance joint venture with AXA of France. Meantime, an area of growing interest was emerging at the turn of the millennium as Sime Darby increased its interest in Port Dickson Power to 60 percent, giving it majority control and turning Port Dickson into a company subsidiary. Flush with cash from the sale of its financial services units, Sime Darby appeared poised to make additional forays into the power generation sector. Given the near disaster of its aggressive moves into financial services, however, the company was likely to proceed with much caution in all of its future expansionary endeavors in a return to its traditional style of conservative management. Business activities: Plantation: Plantation is Sime Darby largest revenue generator with about 70% of the conglomerate profits come from this segment. The company operates palm oil and rubber plantations in Malaysia and Indonesian islands of Sumatera, Kalimantan and Sulawesi. With a land bank of over 633,000 hectares, including 300,000 hectares in Indonesia, it is one of the largest plantation company in the world. Property: The company is involved in the property development business in eight countries, namely Malaysia, Singapore, Indonesia, Philippines, Vietnam, PeopleHYPERLINK http://en.wikipedia.org/wiki/Peoples_Republic_of_ChinaHYPERLINK http://en.wikipedia.org/wiki/Peoples_Republic_of_Chinas Republic of China, Australia and United Kingdom. Industrial and Monitoring :The company is involved in the purchasing, leasing and selling of industrial equipment such as Caterpillar Inc. heavy duty trucks and tractors.. it has partnership with Ford, it sells Fords cars and trucks together with the Land Rover brand. It is also a major BMW dealer in Singapore, Australia and Thailand. In Southern China, the company sells BMW and Rolls-Royce. In addition, Sime Darby co-owns Inokom Corp Bhd, a joint-venture with Hyundai Motor Company which assembles and sells Hyundai vehicles in Malaysia. Energy Utilities: The company is an Oil and Gas services company which provides equipment for exploring oil and gas assets in the South East Asia region. The company is also an independent power provider in Malaysia and Thailand. The company also provides engineering services in the system integration and sales sectors, security and oil gas sectors. Healthcare: The company owns hospital named Sime Darby Medical Centre Subang Jaya Sdn. Bhd ,SDMC Formerly known as Subang Jaya Medical Centre, and college formerly known as SJMC Academy of Nursing and Health Sciences which was established in 1995 and now is known as Sime Darby Nursing and Health Sciences College. Other businesses: The company has a port utility company named Weifang Sime Darby Port Co Ltd. Other businesses that the company is involved in include healthcare, aerospace (divested from Asian Composites Manufacturing (ACM) in 2009), bedding, consumer and industrial products, logistics and packing.The company also owns the 30% of the Malaysian arm of Tesco stores. Sustainable Practices: Sime Darby plantations implemented Zero Burning Planting Techniques Techniques (ZBPT), a practical and environmentally sound technique of replanting, in 1989. The Board of director and audit committee profile: Company Profile Bhg Dato Mohd Bakke, was chosen on13th May 2010 as the new president and group chief executive (PGCE) and formerly group president/CEO of Felda Global ventures Holdings SDN Bhd, he has necessary experience in corporate restructuring exercises as well as in management expertise in the plantation. Dato Azhar Abdul Hamid, Chairman,board of Directors and Managing Director of Sime Darby Plantation Sdn Bhd. He is head of the Sime Darby Groups Plantation and Agri-business Division Internal and External Audit Duties and comments To say that the group had processes in place its just that they had not been implemented properly certainly laughable because it is all too  familiar. If one was to seriously respond to this excuse, it would be that is why you have internal and external auditors. And when the internal auditors raised the red flag in August 2008, it was conveniently swept under the carpet! If the excuse was that, the non-executive independent directors were obliged to give the benefit of the doubt to management, the external auditors, Price Waterhouse Coopers (PWC) certainly had no such obligation or professional reason to do so! This was their red flag to delve into the issue of cost over-runs including its recovery of such costs. This is no more an ordinary run of the mill statutory audit. PWC had been put on enquiry and were obliged to look into the concern meticulously. The question to be answered is that, what did PWC do? They signed off the accounts of Sime Darby for 2008 and 2009 with a clean audit report! Not even an emphasis of matter especially on the possible cost over-runs and its recoverability! The fact that official media had highlighted these matters, besides the media report prior to the finalization of the 2008 and 2009 accounts speak volumes about the role (or lack of it) of PWC The official media currently has been quite polite about this latest incident .yes, they have been polite relatively speaking, but if you read in between the lines, the insinuation is the total collapse in the check and balance roles of the other parties involved with Sime Darby notably the auditors and members of the Audit Committee headed by the ex-chairman of PWC. Andrew Sheng, a proponent of strong corporate governance is unfortunately embroiled in this mess as director and he cannot easily extricate himself out of this especially when he was appointed in 2007.He has to regain credibility by insisting massive and fundamental changes to the way things are done in the Malaysian corporate world in general and Sime Darby in particular. The audit committee In April 2008, for example, there were news reports that Sime Darby Engineering Sdn Bhd had incurred cost overruns of between RM120mil and RM150mil in its offshore engineering, procurement, construction, installation and commissioning project for Maersk Oil Qatar (MOQ). In February 2009, a report also alleged that there had been costs overruns in the same project, but this time, the figure mentioned was far bigger. At a media briefing on Feb 4, Zubir dismissed this: Theres no such thing as the RM800mil losses. The Minority Watchdog Group (MSWG) wrote to Sime Darby chairman Tun Musa Hitam in March 2009 on issues in the energy and utilities division. At the companys AGM last November, the MSWG also raised questions about the divisions shrinking bottom-line. Moreover, it has been reported that Sime Darbys internal auditor has come up with reports highlighting the divisions losses and that longtime independent auditors PricewaterhouseCoopers (PwC) had delayed signing off Sime Engineerings 2008 accounts. Boardroom strength: The former executive director of a Big Four firm says When PwC does not sign off the accounts of a significant subsidiary of listed company and yet signs off the parent companys accounts. It is understood that the auditors could issue an unqualified audit opinion on the Sime Darby accounts despite not doing so for Sime Engineering because the issue in dispute at the Sime Engineering level was not material on a group basis. The current public discussions about accountability and the suggestions that more heads must roll at Sime Darby are making the headlines, but the core underlying issue is quite different: How could this mess have happened in spite of the conglomerates governance structure and controls? Going by the information in the annual report 2009, Sime Darbys system of checks and balances at the boardroom and top management level is sturdy and robust, befitting its status as a sprawling multinational corporation. Beside Ahmad Zubir, Sime Darby has 12 directors. Half of these are independent directors and all 12 are non-executive directors. Together, they form a team with deep and varied experience and knowledge. Among the independent board members are stalwarts such as Musa, Raja Tan Sri Arshad Raja Tun Uda, Datuk Seri Panglima Andrew Sheng and Tan Sri Dr Ahmad Tajuddin Ali.You cant accuse the board of being sleepy. There are some heavyweights there, says the research head of a foreign investment house. Yet, the directors have missed the extent of Sime Darbys project woes until, reportedly, PwC went to Musa last year to express its concerns over the energy and utilities division. In the financial year 2009, there were 12 board meetings. Not many listed companies in Malaysia hold these meetings this frequently. In addition, there are seven board committees and they each meet several times a year. Above all, Sime Darby has supervisory committees that were set up to assist the board in the oversight of the respective divisions (of the company). The board has identified certain non-executive directors to sit on these committees. Definitely, this is not a case of the directors having limited exposure to the companys management and affairs. So how is it that the many warning signs had not prompted the board to initiate a probe until October last year, when it established a board work group to review the energy and utilities divisions operations? The boards defenders say the management convinced the directors that in spite of the auditors concerns and the rumors, the situation was under control. The argument here is that the board has to constantly maintain a balance between objectivity and the ability to work well with the management. In other words, in the absence of strong evidence to the contrary, the board saw no reason to doubt the information provided by the management. That is why, it took a bit of time for the Sime Darby board to get into full swing once it became clear that it must investigate the corporate governance and performance of the division. The directors have to shift from a position of trus t to skepticism to disbelief and finally, to outrage, says a corporate insider Rajawas executive chairman and senior partner for 18 years, retired from PwC in June 30, 2005. Raja Arshad was appointed to the board of the pre-merger Sime Darby on July 1, 2007 exactly two years later, thus fulfilling the criterion for boardroom independence at Sime Darby. Raja Arshad was not necessarily the best choice to head Sime Darbys audit committee, PwC insisted that his position in the audit committee does not change how the firm conducts its audit of Sime Darby. Therefore, what is PwCs part in the Sime Darby fiasco? The four key findings disclosed by Sime Darby on May 13 was that , only one decision to reverse revenue of RM200mil for the Qatar Petroleum project relates to a matter taken up in accounts already audited. The other three relate to items that have only surfaced in the current financial year. This means PwC could not have known about these figures until it begins auditing Sime Darbys 2010 accounts. Nevertheless, some in the accounting fraternity say this may be a test case for the newly constituted Audit Oversight Board.

A Streetcar Named Desire: Visual, Aural and Spatial :: English Literature

Streetcar Named Desire: Visual, Aural and Spatial The sound for ‘A Streetcar Named Desire’ is effective but this could be built upon to improve it and create a more intense atmosphere. The stage directions do state when sound should be used, they usually state the piece of music and the way in which it should be played, for example â€Å"Blue piano and the hot trumpet sound louder†. I think that if an amalgamation of types of music such as; instrumental music, recorded sounds and vocal pieces. This would provide a range of sounds and would be more interesting for the audience. More sound could be used to reflect the action taking place in the play, an example being when, in Scene Ten, when Blanche is trying to get hold of Shep Huntleigh and is getting more and more distressed this would be an appropriate time for some fast paced music to enhance her panic. The space on the stage could have been used a lot more effectively. The actors could use the whole of the stage, split certain parts of it up to represent different rooms and scenes, also the changing of space to create dramatic effect. A good example of a use of this changing space is in Scene Ten before Blanche gets raped by Stanley, the scene could start with the space room sized and then as he becomes more dominating over her it shrinks to show how trapped she feels. The scenery in the play needs to be relevant to the era and surroundings of New Orleans, realistic enough so that the audience know where they are and are interesting but not so much that it takes the focus of the play away from the actors, the scenery should be life like, for example the flat, if it is flat like then the audience can relate with the characters and it can make it feel more real. The era of the play is also set by the costume that the actors wear to suggest the time and conditions that the characters live in, the costumes should also dictate the class of the people in the play as there are clear divides. For example Blanche would wear long frilly summer dresses to show that she is still living in the past and wears clothes that draw attention to herself and most importantly, make her look attractive. Blanche’s make up would be highlighted to show her vanity but also to give the appearance that she is younger than she is. The scenery would show to the audience exactly what it is that she

Justifying The State Essay

Q1 If the state is not a voluntary organisation, how can one be under any obligation to obey its commands? This is a question about justifying the state. What D. D. Raphael calls † the grounds of political obligation.1 If the state can be justified somehow then so can the commands it makes, whether it is voluntary or not. This would be a state built on individual consent; obligation to the commands of the state would flow from that consent. This essay will discuss the possibility of justifying of the state through the idea of a social contract. The state when it creates a law draws a line one cannot cross without consequences. For clarity I am talking about a serious law, specifically one that obviously has a moral base, the law against murder for example. An individualist might say ‘I have no intention of crossing that line anyway because I believe it would be morally wrong to do so’. The law in his case may as well not exist. Just by not breaking a law it can appear as though he supports it. When what he might agree with is what the law defends/upholds /represents, and that is the moral principle behind it. This is one reason why some people appear to uphold the law when in fact all they may be doing is following a personal moral code. or simply agreeing with the basic rational belief shared by most people that ‘murder is wrong or (maybe) tax for the NHS is good’ for example. I suggest this analogy can be applied when questioning many commands of the state. When I obey the state by paying taxes, I may not be doing so because I am obligated too by law but for other reasons including moral ones. Socialists (as do many others) might argue that they are happy to pay more tax in return for a wider societal benefit that includes all, i.e. as in the National Health Service. Therefore a socialist might argue that she paid her National Insurance not because the law obligates her too, but because it ‘fits her moral attitudes and outlook anyway’. The fact that she has no legal right to refuse to pay becomes relevant in this case only if she actually doesn’t. The above argument is Lockean to the extent that it â€Å"appeal[s] to the idea of individual consent.†2 It is also in part my own view, which is (I think) essentially individualist in nature, though not libertarian. The relevance of my own view to this essay is that when thinking about this question, I realised that I had no idea what my own moral position was regarding some of the most crucial problems and contradictions of political philosophy. Many of these questions require (I think) a moral stance in order to be able to make sense of them. This may seem like a non-academic approach as if I am personalising or reducing this essay to subjective notions, however the questions and issues of political philosophy are in large part moral questions and issues that therefore have as a basis, personal moral opinions. Locke’s view according to Wolff is that obligations to the institutions of the state â€Å"must be justified in terms of the will, choices or decisions of those over whom they have authority.†3 Justification of the institutions of the state that enforce obligation then is reliant on the idea that personal autonomy is of premier value. Will Kymlicka defines this as the belief that the individual is ‘morally prior’ to the community. One objection to this is the communitarian argument that the individual is not ‘morally prior’ to the community instead individuals are a ‘product of the community.’4 There are other objectors to Locke’s idea that autonomy is the primary value. Wolff writes that Bentham considered â€Å"the primary value is not autonomy but happiness †¦ whether we consent to the state is irrelevant.† 5 This utilitarian argument is that the ‘happiness’ of society, as a whole is of more value than personal autonomy or the happiness of the few or one. And that therefore one has a duty to obey the commands of the state as it pursues this goal. So if the state decides that having nuclear weapons is for the greater good (happiness) then I would be obligated to pay my share of tax for them whatever I thought. I may be against nuclear weapons or the military in general for moral reasons (pacifism for example) but my moral objection is sacrificed for the greater happiness. The problem political philosopher’s face is finding ways to solve issues like the one above. Just how does one justify the state? One theory is the idea of ‘the social contract.’ Wolff here defines the ‘project of the social contract theory.’ â€Å"The project of showing that individuals consent to the state lies behind the idea of social contract theory. If, somehow or other, it can be shown that every individual has consented to the state, or formed a contract with the state, or made a contract with each other to create a state, then the problem appears to be solved.†6 It is difficult to support the idea that the state, and thereby its commands and responding obligations, can be justified by the theory of a social contract. â€Å"The theory of a social contract tries to justify political obligation as being based on an implicit promise, like the obligation to obey the rules of a voluntary association.†7 If there were such a contract (based on the idea that the state is a voluntary organisation) the problem of individual obligation to the state would be solved. One could join (or leave) institutions of the state at will, and not be subject to state penalties. This is clearly not so. To clarify this further I can ask a different question: how much like a voluntary association is the state? The consensus among political philosophers is I think that the state is not a voluntary organisation. To be born is to be joined to it. As Raphael says â€Å"the universality of the states jurisdiction makes its compulsory character more pervasive and more evident. â€Å"8 Individuals are inextricably linked to it in many ways, for example through the financial/legal institutions. Neither of these institutions are voluntary, they both carry obligations that are enforceable by law. For a comparison I will examine what I think a voluntary organisation is. The obligations I have to the UEA regarding my degree, I agreed to honour. They were stated, I accepted. This does not mean I think the UEA is perfect. Just because I am obligated, (I agreed to the UEA rules) does not mean I cannot criticise the parking problem. What is important is that I chose to join. My obligations to the UEA are voluntary, and I can withdraw from them voluntarily and leave the university should I choose. This is not possible in the case of the state. â€Å"[I] am subject to the rules whether I like it or not.†9 As a general philosophical attitude I am ‘nervous’ or sceptical of organisations people are forced to join or have to remain joined to, this includes the idea of a state. This could be framed as, (if this sentence makes sense) ‘I do not like the idea that there is a group I am unable not to join’. These reasons might help to explain why I am ‘generally sceptical’ of some of the motives of our own state. So where does this leave us? The above contentions highlight some of the problems of the social contract theory. The central objection to it is that the state is not voluntary therefore there can be no ‘mutually agreed contract.’ Nor has there historically ever been one. As Wolff observes, if there ever was a social contract â€Å"What is the evidence? Which museum is it in?†10 The idea of a hypothetical contract is an attempt to solve this problem. It does not rely on any formal notion of â€Å"actual consent, be it historical, express, or tacit.†11 The hypothetical contract relies on hypothetical consent. If hypothetical consent were possible it would provide a moral reason for political obligation. That is the ingredient the question this essay is discussing implicitly implies is missing. The idea asks us to imagine a position from where we could successfully negotiate a social contract. Rawl’s idea is a very complex one that effects many issues. In his Theory of Justice, Rawls sets out primarily to establish â€Å"what moral principles should govern the basic structure of a just society.†12 Rawls Theory of Justice suggests a set of specific moral principles that he hopes will achieve this consensus view. It is these principles that critics of the theory in the main object to. What they are concerned with is the kind of society that would emerge from behind any veil of ignorance whatever its character. For the purpose of this essay the idea of a ‘veil of ignorance’ which is subject to many conditions, is the device Rawls uses to argue for consent. If people can agree on what would be just, (which he argues is possible using the principles he suggests) from behind a ‘veil of ignorance’ the consent reached would be a voluntary contract. Again the problem remains, what principles really constitute a ‘just society’ are not clear. Objections to Rawls ideas include the ‘libertarian critique.’ Kukathas and Pettit13 argue that for principled libertarians like Nozick the state that would emerge from Rawls’s theory â€Å"is bound to seem inherently evil.†14 Nozick’s objections are based on his libertarian view that â€Å"Individuals have rights, and there are things no person or group may do to them (without violating their rights)†15 To conclude is this essay is very difficult; the argument I have tried to demonstrate is that one cannot be under any obligation to obey the commands of the state using the social contract model. I have argued that the social contract fails because it is not consensual. I have also tried to show that the idea of hypothetical contract cannot work because the ‘veil of ignorance’ still does not produce consent because people cannot agree on what the principles of a just state are. One can only be obligated to obey the commands of the state (I think) when its principles are consensual. Bibliography Chandran Kukathas and Philip Pettit, Rawls, A Theory of Justice and its Critics, (Polity Press 1990) Kymlicka, Will, Contemporary Political philosophy. Raphael, D D, Problems of Political Philosophy, (Macmillan press 1990) Wolff, Jonathan, An Introduction to Political Philosophy, (oxford University Press 1996) Colin Dunlop His II Political Philosophy Dr Kathleen Stock 04-04-03 Q1 If the state is not a voluntary organisation, how can one be under any obligation to obey its commands? 1 Raphael, D D, Problems of Political Philosophy, p175 2 Wolff, Jonathan, An Introduction to Political Philosophy, p38 3 Ibid.p38 4 See Kymlicka, Will, Contemporary Political philosophy, Ch5 (I think) his discussion â€Å"multiculturalism and communitarianism.† 5 Ibid.p38 6 Ibid.p43 7 Raphael, D D, Problems of Political Philosophy, p182 8 Ibid.p181 9 Ibid.p181 10 Wolff, Jonathan, An Introduction to Political Philosophy, p44 11 Ibid.p44 12 Chandran Kukathas and Philip Pettit, Rawls, A Theory of Justice and its Critics, p36 13 Ibid. See chapter 5 † The Libertarian Critique† 14 Ibid.p74 15 Robert Nozick quoted by Chandran Kukathas and Philip Pettit in, Rawls, A Theory of Justice and its Critics, p76

Essay on Operation Management - 1445 Words

Wolf Motors Case Study 1. What recommendations would you make to John Wolf with respect to structuring the supplier relationship process for the Wolf Motors dealership network? The recommendations I would suggest for structuring the supplier relationship process for the Wolf Motors dealership network are Wolf Motors should consider a centralized corporate level Materials Management System to consolidate buying decisions for each of the 4 dealerships. This would facilitate greater leveraging with suppliers for consistent quality-control. They should study, calculate and make effective decisions on the materials that should be brought for each of the four dealerships instead of allowing each dealer to do it on their own. An automated†¦show more content†¦Wolf has to work with the distributor to identify and select only those brands or products that meet the quality standards which they have set. An objective would be to reduce the number of suppliers in the purchasing process by identifying a single source distributor for as many supply and product acquisitions as possible. The number of transactions could also be minimized so that it would be helpfu l in maintaining the desired inventory levels allowing the Wolf to realize the additional cost savings. Lubricants can be available at many places outside the company for the less cost but whereas the GM parts can be get only from the company and therefore the feasibility is less for GM parts where the lubricants can be got from various suppliers that to for a very less cost. 3. How can supply chain design and integration help John Wolf reduce investment and space requirements while maintaining adequate service levels? Using Supply-Chain Management to reduce space and investment requirements while maintaining adequate service levels is that when an effective supply-chain management, Wolf Motors can streamline the acquisition processes and maintain efficient inventory control while reducing unnecessary inventory warehousing. Wolf Motors could analyze the historical inventory turnover rates to diagnose the appropriate range of supplies that should be on hand in each and every category. WolfShow MoreRelatedOperations Management : Operation Management1355 Words   |  6 PagesOperations Management Introduction Operations management is the activity of managing the resources that create and deliver services and products. The operations function is the part of the organization that is responsible for this activity. Every organization has an operations function because every organization creates some type of services and/or products. 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