Business

India today has been profoundly changed by the modern world. In fact investors are looking at India as the net big business and investment giant, like China. Once untouched by tourism, big business, and financial and IT industries, India economy is epanding and booming. As a result, its young people called the young professionals have very different values compared to those of their parents.

For young professionals in India, they have been greatly influenced by the Western affluent lifestyle and have adopted the Western values of aggressiveness, innovativeness, and being achievement oriented. They desire to put up their own business become entrepreneurs. They also want to become executives, to live the posh life. They want to be successful in work or in business, they want to buy cars, apartments, and for them to have plenty of money. They desire achievements in their careers also an easy life in contrast to that of their parents who most of them had endured great hardship in the traditional India with its harsh caste system, and who lived a life of poverty.

The companies and managers in India are attempting to help young professionals achieve their values by providing them with attractive jobs, high salaries and fringe benefits, and promotions as ell as opportunity to travel outside of India. In order to attract the best and the brightest from India young professional workforce, global companies are coming up with innovative hiring strategies that will enable these young employees to perform their best The companies in India are offering short-term management training courses, or mini-MBA program for these young people. Others are giving them free housing and provide them with management coaches and mentors in order that they dont get overwhelmed by life in the world of work. Companies also offer flexible work schedule that will enable them to work at home or out of the office.

There are factors are likely to contribute to job satisfaction and organizational commitment among young professional in India. Organizational commitment is defined as a state in which an employee identifies with a particular organization and its goals and wishes to maintain membership in the organization. On the other hand, job satisfaction pertains to the employees general attitude toward his or her job. For young  professionals in India, they have to be motivated with rewards and promotions for high performance. Because of the technology boom, these young and bright Indian engineers and computer programmers can easily leave their jobs and move on to another which may offer better pay, and greater challenges. Managing a global workforce in India is indeed a challenge to transnational managers. These young Indian hirees are eager, smart, and in a hurry to get rich and be successful.
In terms of having organizational commitment, these young employees most likely will leave the company if they think that they are being short-changed, or being discriminated against, and treated unfairly. It will not be easy for global managers to make them be satisfied with simple tasks. They are the product of global education, of MBA Program from Harvard or Wharton, and thus, they will demand more from their employers in term of salary, and perks.

Organizational culture is the shared set of beliefs, expectations, values, norms, and work routines that influence how members of an organization relate to one another and work together to achieve organizational goals. According to Robbins, organizational culture refer to a system of shared meaning held by members that distinguishes the organization from other organizations. The essence of an organizational structure has seven elements innovation and risk taking, attention to details, people orientation, team orientation aggressiveness and stability.  The kind of organizational culture likely to be especially appealing to these young Indian workforce should be a mix of traditional Indian culture with its rituals, Hinduism, arranged marriages, and the caste system, combined with the modern culture of affluence, regard for individual drive and achievement, and a prosperous life.

Although I value modesty as an integral feature of a balanced, mind, for purposes of this essay I feel compelled to stress and illustrate the unique and precise reasons why I believe that I would be an excellent candidate for admission to the University of Washington.  Unlike other candidates who might merely emphasize what they seek for themselves, I believe that in addition to pursuing my own specific individual goals that I would be able to bring new ideas and a diverse background experience that would benefit other students, my professors, and the classes in which I would enroll.  This is because, as an international student with some experience having already studied in the United States, I have previous academic and cultural experiences in both Honk Kong and Indonesia.  I have therefore a number of diverse experiences in Hong Kongs vibrant trading atmosphere, Indonesias moderate Muslim atmosphere, and most recently in Americas technologically advanced standards of living here in Seattle where I am currently attending community college in North Seattle.  My interests in business and commercial trade have been long-standing interests and I selected and pursued a commerce emphasis during my high school studies.  In addition to pursuing business-related subjects in my formal academic programs of study, I have also consistently sought to supplement my academic studies with practical business experiences in the real world.  To this end, working for my parents company, I gained valuable experience working as an assistant accountant for a company engaged in international business consequently at a comparatively young age I gained much experience dealing with the accounting and financial aspects of both domestic and international business transactions.  This was especially useful as I was able to see how theory learned in the classroom, sometimes rather abstract types of theory, could be applied in the real world.  This is my main reason for applying to the University of Washington more specifically, this program has a faculty which has expertise in international commerce and which is ideally located on the Pacific Rim.  More, the program emphasizes an international business orientation, it seeks to bridge theory and practice, and it acknowledges that business ethics and cultural understandings are quite important in the modern business context.  I believe that my background meshes perfectly and quite harmoniously with these business missions.

In addition, from a personal history perspective, I believe that I would be a valuable addition to the program for several reasons.  As mentioned, I have attended schools in Hong Kong, Indonesia, and the United States here in Seattle.  This has, in turn, necessitated special types of learning and knowledge that contribute to my suitability as a candidate.   I can speak, for example, five languages.  These languages include Cantonese, Chinese, Indonesian, English, and Hokkian.  This allows me, because language incorporates cultural values, to more deeply understand what different people value and how these values are expressed in daily life or even in business contexts.  Some cultures seek consensus as a dominant value whereas others seek advantage.  I believe that I can share these insights with my fellow students and professors that will enliven and provide a richer context to class discussions and analyses.  I am currently finishing my studies at the community college in North Seattle, these studies will conclude in the spring, and I am hoping to enroll at the University of Washington shortly thereafter.

In terms of career goals, I envision both short-term and longer-term career goals.  In the short-term, for instance, my goal is to be an accountant or maybe CPA and help my parents to run the company.  I have grander ambitions, however, in the long term.  The modern world of finance is certainly beset with challenges and opportunities.  To be sure, the are financial imbalances throughout the world and many of these balances have been attributed to the substantive nature of novel financial instruments and some have been attributed to human abuses rather than the inherent fallibility of certain finance instruments and financial principles.  These debates, and the underlying financial bases of these debates, relate specifically to my main research interests.  Specifically, I have been most keenly intrigued by how the evolving and frequently contradictory principles of corporate governance affect finance and how the principles of finance might be better coordinated and clarified through a more cohesive and predictable type of global corporate governance paradigm.  Corporate governance is such an important feature of finance, both in terms of public policy and in terms of substantive and procedural financial issues, because it can provide a more secure and predictable framework within which finance professionals may make decisions and weigh risks more confidently.  Though a sometimes neglected aspect of finance, the public policy and corporate policy issues are quite interesting to me and these are areas of study I would like to pursue in addition to the more specific finance topics and courses.

Finally, on a personal business ethics note, I would like to add that todays interdisciplinary world, in which once unsolvable riddles are being approached and solved in unique ways, illustrates in a superficial manner what educational institutions like the University of Washington have known in a more holistic sense for years more specifically, it is the integration of different types of knowledge that makes communities and the world a more comprehensible and ethical planet to inhabit.  I would bring a firm and well-informed ethical background to the business administration program.

Difference between business model and strategy
Business model is a framework of an organization that mainly aims at increasing the profit of the organization. Strategy is a framework of performance. Hence the goal of both business model and strategy is to take an organization to a much better position than it is presently in. However business model looks at the money aspect of the organization, whereas the strategy looks at the aspect of how to increase the productivity level of the organization and accelerate the satisfaction level of the customers so that the organization has an edge over its competitors. Based on the strategy the business model is designed so that the profit maximization is possible without any hiccups. If there is no strategy, deciding upon the business model is not possible for the managers. Hence strategy precedes a business model in all organizational planning. Strategy is laying down rules and regulations of performance while business model is implementation of those strategies. Business model entails how the strategies are implemented, which strategies are of high priority and when a particular strategy would be implemented so that maximum customer satisfaction is attained.

Difference between business model and revenue model
Business model can be termed as one of the trees while the revenue model can be termed as one of its branches. Business model aims at money making of which there are different paths like advertising, auction, production, mark up, revenue generation etc. Since revenue generation is a part of profit making, just like planning for advertising, production etc. that involves different steps of execution, a model of revenue generation known as revenue model is designed so that the business model is complete in all aspects.

Corporate Governance refers to the way in which a companys top managers carry out their responsibilities as well as authority and most importantly how they account for this authority in relation to the companys stakeholders (those who have entrusted them with the organisations resources and assets). Corporate governance is in particular concerned with the possible abuse of power and the need for integrity, accountability and openness in the decision making processes and practices of the firm. The case of the fraud that has been taking place at Satyam, is a good illustration of the significance of good corporate governance and the possible consequences of its failure.

According to Leahy (2009a), study shows that companies which score highly (more than 50 points out of 100) in rankings  used to measure corporate governance have a very stable gross profit and enjoy higher net worth returns as compared to those organisations which score less in these rankings. This article shows that investors tend to reward Indian companies whose corporate governance was above average with better market valuations. The study which was conducted by Standard  Poors found that an upward movement even by a single unit in an organisations corporate governance ranking directly yielded an improvement in the companys market valuation (Leahy, 2009a). Admission to fraud by the former chairman of Satyam Computer Systems will have detrimental effects on the market valuation of this company as it implies low corporate governance. This admission has caused Satyams reputation and credibility to drastically suffer reducing its competitive edge in the market. Besides this, Satyam Company is a very large organisation with up to 53000 employees and clients in more than 60 countries worldwide. The company is also listed on three international stock exchanges. This implies that it has a large number of stakeholders in employees, customers, members, and the larger public whose interests have been put at risk. This calls for the need for immediate remedial steps particularly those that will initiate within the company. Management control systems may also need to be restructured for Satyam to have sound corporate governance. To establish the needed changes and how the management control systems can be restructured, there is need to first of all analyse the current situation so as to identify where the problem is.

The Current Situation
The problem at Satyum originated with Ramalinga Rajus admission that had been manipulating the companys accounts for several years to show the extremely inflated profits as well as assets that were fictitious (Leahy, 2009b). This fraud is biggest corporate scandal in India in the last two decades and the first high-status causality since the onset of global economicfinancial crisis. The disclosure of this fraud will not just affect only those companies that are clients of Satyum. The damage is larger that what it seems, apart from the stake holders of the company, revelation of the fraud will damage the countrys reputation as hundreds of large and well established companies that have entrusted critical data as well as computer systems to Indian companies that outsource their services are likely to be alarmed. Satyam has clients in very large multinational companies such as Nestle, General Electric, Unilever, Cisco, Sony and even the World Bank (Leahy, 2009b). These are companies any business organisation dreams of having as clients and would not want to lose at any expense. Unfortunately for Satyam, it might lose these and more others because of the organisations lack of sound corporate governance (Tucker,  Leathy, 2010).

The current situation implies that there exist shortages in the regulation of outsourcing companies and how they are audited. The news of the fraud also had a drastic effect on Indias stock markets. It is worth to note that its revelation caused the value of Satyam shares to decrease by up to 80 percent (Leahy, 2009b). This caused the Sensex index to fall by seven percent. According to Raju, the fraud started as a cover up in which the companys profits were inflated to mask a poor quarterly performance and eventually got out of hand. According to Mr. Rajus confession, last quarters account ended last September and included a large quantity of money (728 million) of which up to 94 was fallacious (Leahy, 2009b). The operating margin was also inflated from the real figure of 3 of revenue to 24  (Leahy, 2009b). Mr. Raju claimed that neither he nor his family benefited from the fraud.  He also maintained that the rest of the board members were not aware of the fraud.

The actions of Mr. Raju, who is also the founder of the company, negate the main themes of corporate governance which are accountability, integrity and openness at the highest level of an organisation particularly one that is owned by the public. The fact that Raju had attempted to make Satyam acquire Maytas infrastructure companies that are controlled by his family show there was no transparency in decision making processes particularly by the top management. The fact that the rest of the board members have not been aware of this fraud for several years also indicates lack of transparency and openness within the organisation. The decision by the Raju, as the chief executive to cover up for loses using frauds shows no integrity on his part. It is obvious that that some people particularly those from the firm that did auditing for Satyam, PWC were paid to manipulate the figures that resulted top the fraud. From the current situation, it is clear that Satyam actually had no corporate governance, as there has been no accountability, openness and integrity. Apart from Mr. Raju, it is clear that the rest of the board members can not account for the authority that has been bestowed to them by the companys stakeholders, in other words, they have not been doing their work.

Satyams scandal is a clear case of failure of corporate governance and if the problem is to be addressed, it is essential that it is looked at in this light. Satyam operates in the IT outsourcing industry where trust is very critical. Global institutions and in particular financial ones rely on the integrity of the IT outsourcing firms to ensure that their data systems which are very critical and confidential are kept running at all times and are secure. If Satyam somehow recovers from this scandal, it is going to be very challenging for the company to convince investors as well as clients that they can be trusted. It is obvious that there is need for the company to introduce some changes that will ensure that the fundamental tenets of the corporate governance principles transparency, accountability and fairness are upheld. As an international company, it is inherent for the future changes to be aligned with international good practice if the company is to capture investor and client confidence worldwide.
Recommendations for future Changes within the Company in the Context of International Good Practice

International good practices require the accredited institution to take responsibility in what ever is done in its name. This is ensured through corporate governance. Study shows that corporate governance increases the credibility of an organisation and helps to attract investors in spite of the organisations legal form or its size. Changes needed in Satyam should be those that deal with the major worries of stakeholders and investors.

There is need for change in financial disclosures of the company. Satyam should in future be disclosing its financial and operation results as it is without manipulating the figures (Fiscor, 2005). It is the responsibility of the board of directors to ensure that the financial and operating results of the firm are revealed to all stakeholders and particularly the shareholders. The board should provide disclose this information in an appropriate manner so that the stakeholders understand the current state of affairs of the firm and the future developments (Monks  Minow, 1991). The board of directors should also be qualified enough to identify inherent risks and avoid them. Any plans to add assets to the firm should be communicated and shareholders consent sought before proceeding (Atkins, 1995). The risks associated with acquiring new assets should also be communicated clearly to stakeholders.

The board should also disclose its responsibilities concerning financial communications. The boards responsibilities in overseeing of the process of producing financial statements should be described to the stakeholders (Liss, 2003). This is important as it supports the notion that the board of directors plays a role in creating a general context of transparency. Generally, it is believed that the board is responsible for reporting on the financial as well as operating results of the company. Most corporate governance codes describe the fundamental responsibility of the board as evaluating financial statements, approving and then submitting them to stakeholders and particularly the shareholders ((Liss, 2003). Defining and disclosing the responsibilities of the board in this specific area gives comfort to investors, shareholders and other stakeholders as they understand that the presented financial statements accurately indicate the companys situation.

The company should also fully reveal any significant transactions conducted with related parties (Berenbeim, 2004). This is important as shareholders like knowing that the management is running the firm with their best interest in mind and not just for a few related parties to unduly benefit. Best practice requires members of the board as well as managers to reveal any material interests they might have in transactions affecting the firm (Liss, 2003). Any important related-party transaction, its nature and type, as well as the decision making process used in approving related-party transactions need to be disclosed to al stakeholders. It is also important for the company to disclose its objectives to the stakeholders and seek their consent. The basic corporate objective of the company should be to maximise shareholder value.

Regarding ownership and rights of shareholders, it is important for Satyam to disclose the structure of beneficiary ownership to any interested parties (Fiscor, 2005).  Any changes in the amount of shares owned by substantial investors should also be communicated. This s important to investors when making investment decisions particularly with regard to whether the company applies equitable treatment all shareholders.

Best Practice requires any rules as well as procedures that govern the acquisition of corporate control by the company in the capital markets and any significant transactions such as acquisitions, mergers or sales of considerable portions of the companys assets to be revealed to all the stakeholders (Liss, 2003). It is also suggested that consent be sought from shareholders and all the procedures involved in these transactions be disclosed to them. Best practice also suggests that the shareholders be allowed to know the identity of the bidder and sometimes be given the chance to approve it.

There is also need for change in the governance structures as well as policies of Satyam. This is with particular regard to the structure, role as well as functions of the board of directors.  It is important for the composition of board to be disclosed and any affiliations of these members with the company be revealed (IRRC, 1999). Good practice proposes that a certain percentage of the members of the board of governors should consist of independent individuals who are neither family nor friends of the companys founder. These individuals should have the necessary qualification and integrity so that they can make objective and independent decisions and at the same time contribute towards adding value to the board (Liss, 2003). This is to enhance transparency, accountability and fairness which are the fundamental tenets of the corporate governance principles. While some countries as well as codes such as in India tolerate a combined chief executive officer and chairman, best practice argues that separation of the two posts and their responsibilities is desirable (IRRC, 1999). This is because it fosters a balance of power within the organisations leadership structure. There is need for a chair of the board who is independent in Satyam. This is important and might prevent the recurrence of a scandal such as the present one as it ensures that no single individual might have to consider applying this so that no single individual has unregulated control of the firm.

The role and functions of the board must clearly be disclosed to the shareholders (Preston, 1995). Most codes hold directors accountable for the management of the firm. In India, the boards responsibilities include compliance with standards, risk management, internal controls, and fraud detection among several others. The current situation implies that these roles have not clearly been communicated and the board even seems not to understand what its roles are. For example, none of the directors was aware of the fraud and the risk the company has been exposed to for the past several years. Disclosure of the boards functions roles and functions might play a great part in preventing a recurrence of the ongoing scandal.

Emphasis should also be put on the existence of company code of ethics (Colin, 2000). Governance structures that intend to support and maintain that code of ethics should be established and the rules as well as procedures governing it be disclosed. A code of ethics that is maintained is crucial as it promotes risk reduction, transparency and good business practices.

The companys board of directors needs to disclose and give assurance to the companys stakeholders on its risk management activities, objectives and systems (Monks  Minow, 1991). The board needs to come up with and disclose a provision that will help them in identifying as well as managing the effects of activities that are risk bearing. The reporting should include the existing mechanisms for identifying risks.

To prevent a recurrence of the ongoing crisis in the company, it is important for Satyams board to be confident of the independence of the companys external auditors and that the auditors integrity has not in any way been compromised (Frederick, 2004). The board needs to disclose to the stakeholders the process used to appoint and interact with these auditors. This would prevent cases of people being paid to manipulate figures as the current situation at Satyam implies.

How the Satyams Management Control Systems may need to be Restructured
Management control systems refers to those systems which collects and uses information to assess the performance of various organisational resources such as human, financial, physical and the organisation as a whole in view of the organisational strategies (Anthony,  Govindarajan, 2007). These systems affect how organisational resources behave to implement a firms strategies. Management control systems also refer to the process by which a companys top management influence their juniors and subordinates to implement the firms strategies. It involves coordination,  resource allocation, performance measurement  and motivation. Management control systems are important because they enable managers to steer the firm towards achieving its strategic objectives (Anthony, Govindarajan, 2007).  Management control systems involve and greatly depend on the behaviour of managers. It covers all aspects of a companys operation and is centred on  responsibility centres. Management control system is based on a financial structure and uses managerial control which is planned data as well as actual data as its sources of information.  It encompasses  many control tools including management accounting systems and organisational controls. It also draws contributions from organisational behaviour as it entails communication and motivation of employees towards achieving organisational goals.

Based on the ongoing crisis at Satyam, it is clear that there is a problem with the management control systems and particularly the management accounting systems.  Management accounting includes a myriad of practices such as product costing and budgeting. One of the areas that need to be focused on in the restructuring in the companys management control system is management accounting. Management accounting consists of three major branches differential accounting, managementresponsibility accounting and full cost accounting. The fraud implies that this tool is not working as it should be. There is need to develop the system such that accounting information is available at the same to all stakeholders and not just a few people (the board of directors) or one person, the chairman of the board.

In most companies, management control systems are not subjected to external scrutiny. The implications are that most people including the organisations shareholders are not aware of the control systems that influence the managers behaviour. Since Satyam is an organisation that is partly publicly owned, putting these systems under external scrutiny would help eliminate the occurrence of crises and issues such as the one the company currently is experiencing.

It is important for management control systems to be applied at lower levels than the board. This is because it is managerial decision making and as well as control that most affect a companys financial performance through productivity. This will help increase efficiency and ultimately improved financial performance.

There is also need for the information systems of the company to be aligned with leadership and the way decisions are made. A responsible decision should be based on information. Before using information, the decision-maker should evaluate its quality and ensure that it is accurate. In the case of Satyam, it is obvious that the board has no access to the right information yet it is the decision making body of the organisation. Restructuring of the organisations management control system should focus on making the accurate information available to the board for use to make decisions to avoid the recurrence of a crisis such as the present one.

Conclusion
Corporate finance and management control systems of an organisation are inter-related and very critical to its financial performance. The case of Satyam indicates weaknesses in the two crucial aspects of the organisation. The fraud has serious implications for Satyam and there is the possibility that the organisation might go bankrupt. It is clear that an acquisition is the only way for this company to survive. If it manages to survive the fraud and come up again, changes and restructuring will have to be made in its corporate governance as well as management control systems so that they are in line with international good practice particularly if the organisation is to continue operating as an outsourcing company. This case is a clear indication of the effects of failure and malpractice of corporate governance. It is therefore inherent for all organisations, in spite of their industry and size to ensure that their corporate governance structures are inline with the suggested international good practice.

Reliable, updated, easy-to-use management information systems are vital to facilitate the division of labour process, as they can alert partner countries and donors to overlaps and gaps while also helping to increase the visibility of work, the transparency of aid and the accountability of donors and governments to citizens, tracking progress against promises. It is therefore recommended that governments and donors invest in creating search able on-line databases of on-going and planned work. Many examples are already available online and new systems should build on the experience of these.13 Systems should be designed so as to strengthen the data system the government already uses and integrate donors initiatives into national development programmes and multi-year expenditure frameworks, for example by requiring that the data for each initiative includes information on its fit with relevant national strategies and policies and its contribution to the national budget.

Toyota Motor Company has its corporate headquarters in Toyota City and, its Chief Executive Officer is Akio Toyoda since June 2009. Toyota was established in 1937 by Sakiichi Toyoda. It started as an automotive section in the Toyoda Automatic Model. It produced the A1 and G1 cars which were for passengers. In the 1950s, it faced financial crisis and the Toyota Motor sales was established. The two later merged in 1982 and in 1984, it joined forces with General Motors to form an automobile firm operating in California.  In the 80s, Toyota began producing luxury cars and in the 90s, they produced the compact cars like the Lexus, Tundra, Camry, Scion and Prius. It set a base in the United Kingdom and in 1999 it was listed in the stocks of London and New York. By the year 2002, it had established itself in most cities in the world.

Toyota Motors is a leading automaker operating in over 100 countries. It produces luxurious and mainstream cars and has also tested electronic vehicles. Its main industries are situated in the United States and its market is in the major cities in the world. The company trades on the stock exchanges of London and New York and its stock symbol is TM. The outstanding number of shares is at 1.7 billions dollars. In the fiscal year 2008, the net revenues and the operating incomes increased due to the increased sales and production. The costs of production were reduced helping in the reduction of expenses. In the last year, the operating incomes and revenues decreased in most parts of the world as a result of the global financial crisis. The volumes sold were low compared to other years and, North America and Europe were the most affected. The dividends paid in 2009 were 65 for the first half and 35 the second half thus, the total dividend per share was 100. The highest price was 87.6 while the lowest was 10 with a dividend yield of 1.27 (CBS Interactive Inc., par. 1-2).

General Motors Company is the other company similar to Toyota and, it is mainly referred to as GM. It is an automaker based in the United States and has its headquarters in Detroit, Michigan. In December 2009, GM announced leadership changes whereby, they elected Edward Whiteacre Jr as the CEO and the board chairman. GM was founded in 1908, as a holding company for Buick which, was controlled by William C. Durant in Flint, Michigan. Between 1908 and 1909 it acquired Oldsmobile, Cadillac, Elmore, Oakland and several others. In the latter year, GM acquired the predecessors of GMC truck both based in Michigan. In 1910, Durant lost power of GM due to huge debt and a crumple in new automobile sales. After several years, Durant began the Chevrolet motor company and surreptitiously bought a controlling interest of GM, through the proxy wars in American business history. He reorganized it into General Motors Corporation but, eventually lost control over it. Alfred Sloan took charge and led it to global dominance. Its growth continued to 1980s with many employees and operated many plants. It led in global sales for 77 years longer than any other automobile company. However, in 2009 NGMCO Inc, purchased GM operations and changed the name back to GeneralMotors Company (One38 Org, par. 8).

The stock exchange on which, the company is traded on is the New York Stock Exchange and the symbol used to market the company is GM. The number of outstanding shares in the GM stock is 610M. This shows its dominance and how it stands to gain in the market making it one of the most admired companies in the world. It has its primary product as automobiles, targeting individual clients but, also sells commercially and in fleets including exposed models to hire car companies. General Motors also, trade in the stock exchange thus, providing another market for its products. It makes a sale of 193 billion hence, an American industrial might. The lowest stock price is 0.06 while the highest is 1.2 with a market capitalization of 383M.

Most companies were already working on this technology by early 1990s and it was expected that by the end of the year 2004, most or these programs would be in operation all over the world.  Despite the struggle by 1994, numerous PDA companies had drained their funds due to under development and confusion in the market. A few companies managed to specialize in industrial devices as well as palm computation thus generating streamlined PDA systems.

More so in 2003, the striking advent of the smartphones arrived in the market among strong business rivals like the Nokia, Samsung and the Ericson. This caused the sale of PDA systems to drop considerably and by the end of 2006, the smartphones made over 13,000,000 sales. Another reason for the failure was incorrect market entry time the faster and timely the entry, the better for the business (Slashdot.org, n.d).

In addition to this, another problem was the source of power for the PDA systems which needed the merging of some companies to use their inexhaustible levels of hydrogen. However, this was not possible for the PDA companies.

There is also a hitch felt when one thinks of innovativeness in enabling a certain technology. It requires one to think of the consumer promptly. For example, the competitors came up with better and mature technologies to generate long lasting rechargeable phone batteries enabling timely entry in the market (Slashdot.org, n.d.).

It was not even possible to strike as high as it was expected even after the redesigning of the PDA products. However, the market is not totally collapsed although it some times stagnates. There is a great need for the PDA companies to do appropriate market research in order to try and capture the most interesting consumer needs and upgrade production strategies.

The article points out on reasons why world trade is experiencing swings yet again after recovering from 200708 economic meltdown. According to World Bank and IMF statistics, trade volumes and volume of exports showed a sharp V- shaped growth on last three quarters of last year.

Two reasons have been suggested that seem to spoil the improving trade. First, there was a slowdown in the pace of recovery towards the end of 2009. The trade expansion rate declined from 5.4  in September to 1.4  and 1.1  in November (the economist, 2010).  Secondly the growth in trade volume of sophisticated goods from industrialized countries has been overtaken by exports of basic consumer goods. Growth in demand recent has come from developing nations such as china who are now demanding more of consumer goods.

The article paints out the clear picture of what is happening in the world of exports and imports. The world business is presently recovering from economic meltdown of 2008 that left business activities at stand still. Its undeniable that the emerging nations such as china and India are the reason behind the expanding global demand in recent years and any change in demand by these nations would harm global trade.

The results from the article will give all nations involved in international trade a new direction in which to follow and address areas which need changes. For instance, it seems industrialized nations are been affected negatively by shift in demand from developing markets, hence this article will help them restructure their production.  

My major concern on report given in this article is fear of another downtown in world trade as experienced in two years ago. Last years continues decline in trade volume growth rate from 5  to 1  in span of three months is alarming. My wish is too see government taking economic policies that would stimulate consumption and hence expansion in trade.