Apple Company Essay Example | Topics and Well Written Essays - 1000 words

Apple Company - Essay Example It took Apple only five years from 2003 to 2008 to have the market value of its shares increased by as many as 25 times, as the value of Apple’s share in 2003 was $7.5 which increased to $180 in the year 2008. â€Å"At July 2008 prices, before the US Financial Crisis, Apple stock market capitalization was $160 billion. In January 2010 Apple shares topped the $210 mark† (Vertygo Team, 2011). The case study of Apple Company provides an excellent practical example of how the theoretical marketing principles can be brought to life by incorporating them into the business strategies, and their benefits can thus be obtained. This paper discusses the potential ways of integration of the marketing theory with practice, and explores the comprehensive marketing strategy adopted by the Apple Company that has led it to the profound success. The secret of Apple’s success lies beyond the design standards of its products as well as the core philosophy of Apple which suggests tha t â€Å"the user doesn’t always know what they want† (Tiojanco, 2012). ... potential hurdles in the way of integrating marketing theory with practice, and recognition of the measures that can be taken to overcome those obstacles. Subjectivity in the knowledge of marketing theory is introduced by the conflicting and complimenting marketing theories of different scholars and educationalists. There is not a single established way of marketing that has gained mutual consensus of all scholars and authors. In fact, different good practices have been explained in different books and literatures depending upon the context, circumstances, organizational objectives, and internal and external environmental and cultural factors that vary from one case study to another. However, there is a need to generalize certain marketing practices and principles that have been approved by a vast majority of scholars. Such marketing principles include but are not limited to improving the brand image by fulfilling corporate social responsibility, incorporating innovation and diversit y in the product design so that the product addresses the needs of a vast majority and diverse population of consumers, and selecting the right medium and the right time to advertise the products. Application of the marketing theory in practice requires understanding of difference between the role of advertisement and promotion. â€Å"[A]dvertising-like messages are used for longerterm strategic efforts to build brand awareness and attitude while promotion-like messages are designed for shorter-term tactical needs to stimulate an immediate sales response† (Percy, 2008, p. 28). Some of the hurdles in the integration of marketing theory with practice include lack of consistency between the organizational structure and the scope of work and organizational objectives, lack of involvement of

The Lungs Research Paper Example | Topics and Well Written Essays - 750 words

The Lungs - Research Paper Example The lungs are composed of a substance which is light, porous, have a spongy texture and are highly elastic. The surface has many polyhedral areas. The lungs are heavier in a male than in a female; the left lung is smaller than the right one in order to accommodate the heart. The lungs can be examined in terms of an apex, a base, three borders (anterior and inferior) and two surfaces (Costal and mediastinal). Each lung is conical in shape and is divided into lobes by interlobular fissures. The left lung is divided into the left superior or upper lobe and the left inferior or lower lobe. The right lung is divided into the right superior lobe, the right middle lobe and the right inferior lobe. Each lobe is further divided into pyramidal bronchopulmonary segments: ten in the right and eight in the left one. The root of each lung or the hilum connects the lung to the heart and the trachea. According to Gray (1918), â€Å"the bronchus, the pulmonary artery, the pulmonary veins, the bronch ial arteries and veins, the pulmonary plexuses of nerves, lymphatic vessels, bronchial lymph glands, and areolar tissue enter and leave the lungs through the root†. The trachea, or windpipe, reaches the thorax and is divided into the right and left bronchi. In the lungs the bronchi divide into large ventral and small dorsal branches. The bronchi are divided into smaller bronchi and bronchioles. Each bronchiole further splits into two or more respiratory bronchioles connected to alveolar ducts which, in turn, are connected to a cluster of small alveoli or air sacs. The pulmonary artery, the pulmonary veins, and the pulmonary capillaries supply deoxygenated blood to the lungs and remove oxygenated blood. The bronchial arteries and the bronchial vein supply oxygenated blood for the nutrition of the lung itself. All these arteries and veins enter and leave the lung through the hilum, as do the lymphatic vessels of the lungs. Pulmonary nodes, bronchopulmonary nodes and tracheobronc heal nodes are present. The lungs are supplied with nerves from the anterior and posterior pulmonary plexuses which have small ganglia on them. (Gray, 1918). The function of the lungs is to provide a continuous gas exchange between the inhaled air and the blood in pulmonary circulation. Oxygen is supplied and carbon dioxide is eliminated by exhalation. The exchange of gases takes place through simple diffusion: oxygen diffuses from the alveoli into the blood and CO2 diffuses from the blood into the alveoli. This diffusion requires a concentration, or pressure, gradient. The concentration of oxygen in the alveoli is kept higher than in the blood and the concentration of CO2 in the alveoli is kept lower than in the blood by the breathing of fresh air into the lungs. This breathing mechanism is generated by the respiratory muscles: the exterior intercostals located between the ribs, and the diaphragm which is a sheet separating the thorax from the abdomen. During inspiration the interc ostals and the diaphragm contract, the dimension of the thoracic cavity increases, air pressure in the lungs decreases and becomes slightly negative as compared to atmospheric pressure. This causes the air to move from the atmosphere into the lungs. During exhalation the muscles relax, lung volume decreases, pressure in the lungs increases and air is exhaled. The surface tension on the walls of the alveoli caused by water molecules is reduced by the pulmonary surfactant produced by the lungs. The exchange

History of Film Genres Essay Example | Topics and Well Written Essays - 1250 words

History of Film Genres - Essay Example Although that is the truth of the situation in the entertainment industry, the reality of the film-making world is that all of these films are actually categorized per genre. These genres include but are not limited to historical subject, intended impacts, formal criteria, subject matter, and finally, film style. Films generally classify their type of film per genre. By doing so, the movie aficionados and film buffs are given a chance to fully grasp and understand the evolution of our society via films. The slow but sure evolution of film, from the silent films to the colored talkies, to the high tech 3-D films that we have in the cinemas today all focus on the changes and development of culture or historical period within which certain films are produced (â€Å"The History and Evolution of Genres†). It is through this developmental context that Hollywood managed to produce such a diverse set of films stemming from the Western hero in the 1940's and 50's which eventually evolv ed into group heroism as explored in the 1960's and 70's. This group heroism exposed the shift in our society from the open land, pioneering work place of man towards the more organized group of working people in corporations and companies. Eventually, the increase of interest from within our society in the urban crime and international espionage era of the 1970's and 1980's gave way to the current trend of police/detective and spy / thriller genres (â€Å"The History and Evolution of Genres†). As seen in the above listing of film genres, one can note that films are composed of various forms which are identifiable by type. This means that the film categories or classifications can be done based upon a specific criteria. These criteria could be based upon films that have recurring/similar/familiar/instantly recognizable patterns, syntax, film techniques/conventions. content and subject matter, themes, mood, period, plot, central narrative events, motifs, styles, structures, si tuations, recurring icons based upon influence on society, stock characters, or even film stars. Some of these films could even by hybrid type and therefore employ the use of several genres in one film, this is what is known as a hybrid film in Hollywood (Dirks, Tim â€Å"Main Film Genres†). Historically, one of the most popular film genres includes are epic films such as The Ten Commandments, Quo Vadis, and Gone with the Wind. These types of films cater mostly to audiences that have a keen interest in costume dramas, historical dramas, war films, medieval romps, or period pictures. Although epic films have been known to share the elements of an adventure film due to their shared need for a vast, panoramic backdrop, epics still tend to stand under its own spotlight due to the uniqueness of the production values. These production values include but are not limited to: ... an historical or imagined event, mythic, legendary, or heroic figure, and add an extravagant setting and l avish costumes, accompanied by grandeur and spectacle, dramatic scope, high production values, and a sweeping musical score (Dirks, Tim â€Å"Main Film Genres†). Although the epic and war films share certain contexts when it comes to the story being told due to the lavish budgets, costumes, and settings, these two particular genres tell two different stories. While the epic can tell the story of an imagined event or heroic war figure, the war film depicts the cold-hearted brutality and heart breaking real life events

The Lungs Research Paper Example | Topics and Well Written Essays - 750 words

The Lungs - Research Paper Example The lungs are composed of a substance which is light, porous, have a spongy texture and are highly elastic. The surface has many polyhedral areas. The lungs are heavier in a male than in a female; the left lung is smaller than the right one in order to accommodate the heart. The lungs can be examined in terms of an apex, a base, three borders (anterior and inferior) and two surfaces (Costal and mediastinal). Each lung is conical in shape and is divided into lobes by interlobular fissures. The left lung is divided into the left superior or upper lobe and the left inferior or lower lobe. The right lung is divided into the right superior lobe, the right middle lobe and the right inferior lobe. Each lobe is further divided into pyramidal bronchopulmonary segments: ten in the right and eight in the left one. The root of each lung or the hilum connects the lung to the heart and the trachea. According to Gray (1918), â€Å"the bronchus, the pulmonary artery, the pulmonary veins, the bronch ial arteries and veins, the pulmonary plexuses of nerves, lymphatic vessels, bronchial lymph glands, and areolar tissue enter and leave the lungs through the root†. The trachea, or windpipe, reaches the thorax and is divided into the right and left bronchi. In the lungs the bronchi divide into large ventral and small dorsal branches. The bronchi are divided into smaller bronchi and bronchioles. Each bronchiole further splits into two or more respiratory bronchioles connected to alveolar ducts which, in turn, are connected to a cluster of small alveoli or air sacs. The pulmonary artery, the pulmonary veins, and the pulmonary capillaries supply deoxygenated blood to the lungs and remove oxygenated blood. The bronchial arteries and the bronchial vein supply oxygenated blood for the nutrition of the lung itself. All these arteries and veins enter and leave the lung through the hilum, as do the lymphatic vessels of the lungs. Pulmonary nodes, bronchopulmonary nodes and tracheobronc heal nodes are present. The lungs are supplied with nerves from the anterior and posterior pulmonary plexuses which have small ganglia on them. (Gray, 1918). The function of the lungs is to provide a continuous gas exchange between the inhaled air and the blood in pulmonary circulation. Oxygen is supplied and carbon dioxide is eliminated by exhalation. The exchange of gases takes place through simple diffusion: oxygen diffuses from the alveoli into the blood and CO2 diffuses from the blood into the alveoli. This diffusion requires a concentration, or pressure, gradient. The concentration of oxygen in the alveoli is kept higher than in the blood and the concentration of CO2 in the alveoli is kept lower than in the blood by the breathing of fresh air into the lungs. This breathing mechanism is generated by the respiratory muscles: the exterior intercostals located between the ribs, and the diaphragm which is a sheet separating the thorax from the abdomen. During inspiration the interc ostals and the diaphragm contract, the dimension of the thoracic cavity increases, air pressure in the lungs decreases and becomes slightly negative as compared to atmospheric pressure. This causes the air to move from the atmosphere into the lungs. During exhalation the muscles relax, lung volume decreases, pressure in the lungs increases and air is exhaled. The surface tension on the walls of the alveoli caused by water molecules is reduced by the pulmonary surfactant produced by the lungs. The exchange

McCarthyism Essay Example | Topics and Well Written Essays - 2250 words

McCarthyism - Essay Example Americans were shaken and afraid. The Soviet sweeping occupation of Eastern Europe occurred immediately following WWII. In effect, Russia replaced Germany and Japan as the American nemesis. The â€Å"Godless Communists† became a clear and present danger to a nation primed, ready and seemingly anxious to accept the Soviets as the new enemy of the â€Å"American Way.† Senator Joseph McCarthy seized upon this fear for, some would insist, purely political gain. He held hearings designed to weed-out subversives and communist sympathizers so as to keep America clean of communism. Instead, this time in history, the early 1950’s, is shamefully known as McCarthyism, a term that has since become a synonym for â€Å"witch hunt.† When World War II finally ended in 1945 Americans were war-weary and scared of a new threat, the Soviet Union. The Soviets had taken the place of Germany in the hearts and minds of Americans because it was emulating the aggressive, imperialis tic tendencies of the Third Reich. The difference being the Soviets now had a military that more or less matched the strength of the U.S., was a larger country and had a long-established communist philosophy which it was also spreading rapidly throughout Eastern Europe. The Soviets also had the atomic bomb by 1949 and was increasing its rocket capabilities, a move than would ultimately pit the two world superpowers in the space race of the late 1950’s through the1960’s. The threat of nuclear annihilation and/or a communist takeover was very real in the minds of 1940’s-50’s America. The sales of backyard bomb shelters were booming and the propaganda machines left over from the Nazi era was in full production mode. Communists, known simply as â€Å"Reds† were feared and thought to be lurking just about anywhere, the guy in the office next to yours, neighbors, long-term friends and family. Communist theories were supposedly hiding within the meanings of literary phrases and all types of media including the news. â€Å"A curious process of symbolic transference was at work whereby symbols applied to Hitlerite Germany were projected onto the USSR on account of the dangerous ‘Red Fascism’ promoted by Stalin† (Sproule, 208). This era was not the first threat of communism in America. The initial wave of â€Å"commie† paranoia came in 1917 after the Russian Revolution. Anti-communist sentiment subsided during the 1920 and ‘30’s when it was replaced by anti-fascism. The â€Å"Second Red Scare† lasted from about 1947 to 1957. McCarthyism and anti-communist sentiments could not have gained traction without the high intensity propaganda campaign encouraged by the government to discourage subversives and by corporations in their effort to undermine unions. R.J. Reynolds, a large tobacco company, initiated a widespread multi-million dollar campaign to notify the country about the communistic ch aracter of labor unions, particularly the union representing tobacco workers. This tactic caught on rapidly with other industries resulting in plummeting union membership numbers across the country for several decades. This effort continues today but the fear-based term is now â€Å"socialism.† The U.S. and Soviet Union were firmly engaged in what is famously known as the Cold War. It was a fought on two fronts, a mass military build-up and a propaganda blitz. During this time of the second red scare, many local and state governments along with public schools and

Marketing plan for mercedes benz Essay Example for Free

Marketing plan for mercedes benz Essay Dear Parents You must be informed about the laws that Current Legislation in UK produced in order to protect the children and young people. Current Legislation 1. Children Act (2004) identify five outcomes for children 1. Education Act (1993) Parents of children under 2 years have the right to ask for the child to be formally assessed 2. Sex Discrimination Act (1975) Ensure that individuals are not discriminated against on the grounds of their sex 3. Race Relation Act (1976) Equality of opportunity must be promoted 4. Public Health Act (1984) Covers the notification and exclusion periods for certain infectious diseases 5. Reporting of Injuries, Diseases and Dangerous Occurrences Regulation (RIDDOR) (1995) Specify certain accidents and incidents that must be by law, reported 6. Equality Act 2010 Aims to ensure that rights of disabled individuals are met 7. Special Educational Need and Disability Act (2004) Protects children from discrimination on the basis of disability , and settings must make reasonable adjustments to their provision to meet the need and right of the child 8. Code of Practice for First Aid (1997) Gives guidance on the provision of trained first aiders and first aid provision 9. Protection of the Children Act (1998) Requires a list to be kept of people considered to be unsuitable to work with children 10. Care of Substances Hazardous to Health (COSHH) Regulations (2002) Deal with the identification, storage and use of potentially harmful substances, such as cleaning fluids 11. Childcare Act (2006) the law that sets out: Duties on local authorities to improve outcomes for children and to ensure access to information about provision in their area Legal frameworks for regulation and inspection of provision for children from birth to age 17 The Early Years Foundation Stage (EYFS): this is the framework for the delivery of quality integrated care and education for children from birth to the 31 August following their fifth birthday. The EYFS includes requirements for the provision of young children’s welfare, learning and development that all providers must meet, as well as good practice guidance. Dear Parents You must be informed about the role of Regulatory Bodies that made all the inspection, investigation and enforcements to my premises in order to improve the overall well-being of the children. OFSTED Ofsted is the Office for Standards in Education, Children’s Services and Skills. They report directly to Parliament and they are independent and impartial. Ofsted is responsible for the inspection of a range of educations and children’s services, and for the inspection and regulation of registered Early Years and Childcare provision.  The aim of all this work is to promote improvement and value for money in the services they inspect and regulate, so that children and young people, parents and carriers benefits.  The registration process with Ofsted looks at my ability and suitability if I deliver the Early Years Foundation Stage (EYFS). This is the framework for the delivery of quality integrated care and education for children from birth to the 31 August following their fifth birthday. The EYFS includes requirements for the provision of young children’s welfare, learning and development that all providers must meet, as well as good practice guidance. An Ofsted inspector will make regular visits to my premises and discuss about how I will meet the welfare requirements: The Inspection report produced by Ofsted will covers the followings: If, I and every other person looking after children on my premises, are suitable to care for children Every person living or working on my premises is suitable to be in regular contact with children My premises is suitable for looking after children If, I meet or will meet all the welfare, learning and development requirements of Early Years Foundation Stage and all the regulations and any conditions of registration imposed by. After an inspection, Ofsted publishes a report on Childminder home based environment website. In addition to written comments on a number of areas, schools and childminder premises are assessed on each area and overall on a 4-point scale: 1 (Outstanding), 2 (Good), 3 (Satisfactory) 4 (Inadequate). Ofsted Register Early Years Childminders to: Protect the children Ensure that they meet the requirements of Early Years Register Ensure that they provide good outcomes for children that keep children healthy, safe, ensure that they enjoy what they do and achieve well, make a positive contribution and develop skills for the future Promote high quality in the provision of care and learning and development Provide reassurance to parents Failure to complying with this welfare requirements would attract complains or concerns from parents or other people side. The law gives to Ofsted as regulatory body a range of powers to regulate children’s social care services, which set out the action that can take in order to enforce compliance with the law. They consider the particular circumstances of each case before deciding what action they need to take. However, it is very important for me not to lose sight of the overriding principle of ensuring the welfare of children and young people.

Contract Strategy And The Contractor Selection Process Construction Essay

Contract Strategy And The Contractor Selection Process Construction Essay Contracts are the fundament of the project management. They are used to procure people, materials and services. Main components in the contractor selection process will be outlined in this chapter. This processes are influenced by many factors such as the nature of the parties included, project type, and the risk allocation between the parties. The project is always about achieving a result. The main problem of this that client usually can not or doesnt wish to provide all necessary resources to complete the project from the internal sources. Therefore there is a need of obtaining resources from external organizations in order to achieve planned results. The method chosen by the client plays the crucial point. Proper understanding of contract conditions and the way of administering them is therefore fundamental to the project manager. Different industries use different types of contract in order to achieve desired results. Therefore, standard types of work-based contracts used in construction industry are completely different to the result-based contracts used in manufacturing, oil and software industries. In addition, the most complex projects can be divided into several different contracts. They can be carried out under one turnkey contract, as well as can be broken down into separate contracts. Design can be carried out by one contract, site preparation by the second contract, and the service/operation of the completed facility under the third contract. They can be broken down into several contracts based on the skills of the contractor, one organization being responsible for production and installation of all necessary equipment for the plant, second organization being responsible for the site preparation and all construction work, a third being responsible for quality control (external for construction organization), and a fourth being responsible for authorship (to control works going according to the approved design). They can be broken down into small numbers of large contracts or large numbers of small contracts. Each will give the contractor advantages as well as the disadvantages. Depending on the nature of the project and the skills, contractor must decide. Finally, different contracts can be operated in different ways. According to Smith N.J. (2002) there are three different ways in which contract can be operated. The first one of which is price-based contract, under which the contractor responsible to provide service, equipment or materials on the fixed price. On the other hand there is a reimbursable contract, under which contractor is reimbursed with the cost of carrying out the work plus profit. Finally, somewhere between these two is the quantity based or rate based contracts. The type of contract or set of contracts should be selected by the client only after the consideration of the managers available to manage the contract, project goals and the skills required to achieve them, appropriate allocation of responsibilities and risks and time available to carry out the project. Factors affecting the contract strategy A number of factors need to be considered before the choosing contract strategy. Responsibilities such as design, construction, quality control, procurement, safety, installation and commissioning need to be determined. The risks also need to be allocated between parties. Then the payment method to contractors, as from this decision depend which contract to use. When making a contract, contractors always wish to make it flexible, because during the life cycle of the project changes may occur. However, one more important factor is that the contracts need to be fair, equitable methods of price changes for instance. However, interests of the client and contractor usually opposed to each other. For example, client carries minimum risk under the lump-sum contract, but contractor carries maximum. And vice versa for cost reimbursable plus percentage fee contract. Almost all of these factors are important for any project. Nevertheless some of these factors may dominate depending on the nature of a project. If the work is a building a power plant in a river, where during the spring period lowest level of water, time-scale obviously dominate. If the work is building the skyscraper, then the quality will dominate. Client have only one chance to choose the correct contract strategy, after deciding this, it can not be changed. There are a plenty of options, and project manager should advice the client which strategy to accept. The selection is definitely one of the most important decisions in any project. Smith N.J. states that the project manager should always remember the three Rs of the contract. (Figure 1) Figure 1 The three Rs (Smith N.J. 2002) Relationships. Whether being highly structured or not, relationship plays important role in a contact strategy. Unstructured relationship may develop during the life cycle of a project and according to the circumstances. There is no exactly the way under which relationships are managed, they need to be managed individually. Risks. Whatever type of contract strategy choused the client, risks present everywhere. It is important for the client to choose right contract strategy which carries out risks which the client is able to manage. When choosing the contractor, client needs to pay attention on the ability of the contractor organization to manage risks appropriate. By other words, every risk in a project should be divided and managed by each party because if something goes wrong, outcomes might be serious. Rules. Rules are necessary to keep the relationship in right way. According to the rules, client and contractors make their behavior, and there will not be many conflicts between them. These Rs are closely interrelated. Relationships, risks and rules formalize one word under which the contract will be governed during the life cycle of the project. Contractor selection After the selection of a contract strategy, client needs to select the contractor. The selection of a contractor is a crucial decision made by client. The criteria for selection might be cost, time or quality. Usually the price/cost criteria is dominate as the clients seek the most economic price. However, according to Smith N.J. (2002) dominating of one of these criteria may negatively affect to others. Figure 2 Project objectives (Barnes and Wearne, 1993). This triangle illustrates the conflict between the project objectives. If the client wants to minimize the cost to minimum, it will affect time and quality. The project will be finished with no desired quality and not within the time scale. Oppositely, if the client wish to increase the level of quality, then it affects on the one hand to cost (overbudget), on the other time (not within planned time-scale). Therefore, client always need to decide, which objective is crucial for the current project. This triangle shows the basic problem of contract strategy. In the planning of the contract, client need to be sure of reason employing a contractor. Client usually selects a contractor for one or more of the following reasons: To use the particular management, technical and organizational skills, and expertise of that contractor for the duration of the contract. To use the skills of the contractor after the project has been completed. To have the benefit of the contractors special recourses, such as licensed processes, unique design of manufacturing capability, plant, materials in stock, ect. To get work started quicker than would be possible by recruiting and training direct employees. To get the contractor to take some of the cost risks of a project, usually the risks of planning the economical use of people, plant, materials and sub-contractors. To use the contractor to provide the recourses, both physical and financial, needed for the project. To be free to use his own (limited) recourses for other purposes. To encourage the development of potential contractors for the future. To deal with a contractor who is already known to the promoter. Smith N.J. (2002) Whatever the reason, client always should make a decision based on it. N. J. Smith (2002) described six principal considerations of choosing type of contract which has to be made by contractor. Those are: discipline, incentive, risk, change, time-scale and relationship. These considerations describe analytical justification of contracts, mainly compared the two price-based and cost based contracts. However, in authors opinion these considerations are actually become an advantages and disadvantages of each form. Therefore, this will be discussed in Chapter 4. According to the M. Brook (1993) the main aim of contractor selection is to find out the lowest possible price, and the following: A reputation for good quality workmanship and efficient organization; The ability to complete on time; A strong financial standing with a good business record; The expertise suited to size and type of project. Also he agrees that, not only client has to consider financial ability of contractor, but the contractor needs to make sure that the client is able to pay bills on time. In the past contractors have not been considered this issue. However this has changed with the introduction of bonds and guaranties used by both parties. Usually contractors selected by two or combination of both: competition and negotiation. When there is an open competition, local newspapers or journals invite competitors to take part on the tender. A deposit normally required, in order to distinguish serious offers. Alternatively, tender might be selective. In this type of tender contractors are selected and invited to tender. M. Brook (1993) determined three ways in which selective tendering lists drawn up: An advertisement may produce several interested contractors and suitable firms are selected to tender. The consultants may contact those they would wish to put on an ad-hoc list. Many local authorities and national bodies keep approved lists of contractors in certain categories, such as work type and cost range. Contractors which are selected to add into list normally asked to provide their financial and technical performance, particularly on the area which is under consideration. Contractors can prepare the answers according to the Standard form of tendering questionnaire private edition written by the National Joint Consultative Committee for Building (NJCC). Questions on it is basically about the projects carried out for last three years. After the completion of questionnaire, it can be used for any further projects or particular project for which contractor invited as a competitor. On the other hand Code of Procedure for Single Stage Selective Tendering written especially for building industry by NJCC. According to this code, project success depends on the completion of design phase before tenders invited and the use of standard forms of contract. M. Brook (1993) classifies Code as follows: Preliminary enquiry contractors are given the opportunity to decide whether they wish to tender by receiving a preliminary enquiry letter, four to six weeks before the dispatch of tender documents. Number of tenderers the recommended number of tenderers is a maximum of six (three of four for design and build) and further names could be held in reserve. Tender documents the aim of the documents is that all tenders will be received on the same basis so that competition is limited to price only. Time for tendering normally at least four working weeks should be allowed, and more time may be needed depending on the size and complexity of the project. Qualified tenders tenderers should not try to vary the basis of their tenders using qualifications. Queries or unacceptable contract conditions should be raised at least 10 days before tenders are due. The consultants can then tell all the tenderers of their decisions and if necessary extend the time for tendering. A contractor should be asked to withdraw significant qualifications or else face rejection. This is necessary to ensure tenders are received on a like-for-like basis. Withdrawal of tenders a tender may be accepted as long as it remains open; a definite period is usually stated in the tender documents. The tenderer may withdraw his offer before its acceptable, under English law. Assessing tenders the tenders should be opened as soon as possible after they are received. Priced bills may be submitted in a separate envelope by all the contractors, or, more likely only the bills of the lowest tenderer will be called for and submitted within four working days. Once the contract has been let, every contractor should be issued with a list of tender prices. Alternatively, tender prices should be given in ascending order and the names listed in alphabetical order. Examination and adjustment of priced bills the PQS will treat the information in the tender documents as confidential and report errors in computation to the architect and client. There are two methods for dealing with errors. Alternative one gives the tenderer the opportunity to confirm his offer or withdraw it. Alternative 2 allows the contractor to confirm his offer or amend it to correct genuine errors. If the contractor amends his offer with a revised tender which is no longer the lowest, the tender of the lowest will be considered. Negotiated reduction of tender the code of procedure recognizes the needs to look for savings in the cost of a project where the tender exceeds the employers budget. This can be achieved by negotiation with the lowest tenderer, or the next lowest if negotiations fail. Two-stage selective tendering may be approved by the client, when the contractors involvement is needed at the design phase. The first stage will provide the competitive tender based on bill of quantities according to the preliminary design. The contractor selected at the first stage helps with the design, after completion of which submits documents for the second stage without competition based on the considered price. NJCC published codes for two-stage selection tender and selection tender for design and build. Those are almost same as the Code of Procedure for Single Stage Selective Tendering, except: Client should consider contractors design and build experience. Number of tenderers reduced to four. The price is not a key issue in the selection of contractors. Significant interdependence between cost, time and quality should be included in clients requirement. During the negotiation stage, contractors selected based on their past experience, performance, recommendation or familiarity with work under consideration. And only one contractor may be selected to proceed the work. Project organisation Often client employs a design consultant in order to advice on feasibility stage of project, or a project management consultant to advice the strategy and risks. As discussed earlier in previous chapter, it might be appropriate to the client to employ a single contractor for the whole project, or a consortium of companies as well as a two or more separate contractors. Further in this chapter will be discussed different types of project organisation. Package deal (turnkey, design and supply) According to the OGC report (2007), the main contractor has to be an experienced organisation to bring together all of the parties (design, construction, installation ect.) necessary to meet the clients expectations. Also further information stated in this report There is nothing to prevent a designer, facilities manager, financier or any other organisation from acting as the Prime Contractor, providing they have suitable ability and experience. Prime Contracting must demonstrate during the initial occupation period that operating cost and performance parameters can be met. It usually includes such features as pain/gain share (where the Prime Contractor as well as the client gains financially by reducing the project costs), target cost pricing (where prices are agreed on the basis of a reasonable profit for the supply team and value for money to the client) and open book accounting (where costs are made transparent to the client). (OGC report, 2007) In this type of arrangement, only one single contractor carries all the responsibility for the project from start to completion. Although main contractor responsible for the procurement, design, construction, equipment supply, installation, commissioning, these works can be sub-contracted to the specialist organizations. The main contractor usually responsible also for financing, design approval, working and state commissions ect. Although being simple, this arrangement has its advantages and disadvantages. The main strengths are: Estimating the cost of the project at the early stage may be possible, the clients requirements are known; The total cost of the project may be reduced; Early completion may be possible as result of design/construction overlap; Easier design integration; Better project organisation; Client has to deal with only one organisation for design and construction; Few recourses from the client need to be involved in a project; Fewer disputes caused by design failure or other defects. Weaknesses: Clients ability to control the contractor will be low; Clients expectations may not be met; Highly qualified staff needed to manage the contractor; No or little contact with the sub-contractors; Client in a negative position to introduce changes; Package deal contracts are commonly used in the service and process industries. Where the contractors are much more experienced in this type of contract rather than other types. (other types will be introduced in the next chapter) However package deal contracts are also used in civil engineering field, especially in building standard houses or office blocks. Package deal contracts are very effective when the client wish to start works early, but he has no sufficient recourses and advisors. Build-own-operate-transfer (BOOT) This type of contract requires that consortium of companies or single contractor take responsibility to built, own and operate a facility. This usually undertaken by the government for the fixed duration (concession period), during which the client pays contractor (normally monthly). Contractor is completely responsible for the project from start to hand over after the concession period, including gaining necessary finance for the project at the start. At the end of concession period ownership of the facility returns to the client. Separation of design and implementation This tends to be the traditional contract. In that type of contract design separated from the construction. This normally achieved by employing the architect (designer) then the contractor for its construction. Despite the fact that there are many available and useful types of contract, this type of contract is still widely used in building and civil engineering industries. In practice, architect or design company supervises the construction process from the clients side. Smith N.J. (2002) states that, Construction is usually undertaken under a quantities/rates based contract, or occasionally under a lump-sum or reimbursable contract. Management contracting Management contracting is a type of contract where the client employs external organisation to control and manage the design and construction processes. External management organisation itself normally does not take part in any of the works. These are packaged into one or several contracts. When using the management contracting, client establishes the contractual and organisational system which is completely different from the conventional approaches. Management organisation employed by the client becomes a part of its team, therefore involvement of a client in the project increases. According to Smith N.J. (2002) payment for the management organisations staff normally is reimbursable plus fee, oppositely for engineering contracts this usually be a lump-sum or quantity based. The management contractor is appointed early, and it has a considerable involvement in a design process. Other participants such as design and construction contractors are employed in normal way. Management contracts have considerable advantage in a building and civil engineering industries, where traditional contracts can not be used. These advantages are listed below (depending of the needs of a client): Time saving. An early start to the project (political, budgetary or procurement policy reasons); Therefore an early completion of a project; When high probability that changes may take place, for instance, high technology or innovative projects. Organisational complexity. When client does not have sufficient resources or does not wish to manage a number of contractors, which may include two or more designers as well as the construction contractors. Although thesis has a construction emphasis, in authors opinion it would give the additional information about contracts if offshore oil engineering will be discussed as well. Offshore oil industry uses the same contracts as a construction industry, except concession contracts. However, industry called each contract in completely different ways. For example: EPC engineer, procure, construct contract; PC procure and construct contract; EPIC engineer, procure, install, commission contract; PIC procure, install and commission contract. In construction industry EPIC would be considered as a turnkey contract. The only one significant difference of oil industry from others is that oil industry contracts, including EPIC (turnkey equivalent) contracts, always concentrate in high level of clients involvement on the project. Direct labour Usually clients does non wish to employ external contractors to install or make equipments or construction activities, instead clients may use their in-house recourses, maintenance or construction department for instance. This is known as a direct labour or direct works. Each activity, such as design, construction or equipment installation normally responsibility of different departments within the company. These initial agreements are very similar to the external contracts, but the conflicts and disputes between departments would be solved in managerial level within the organisation rather than by external legal dispute resolution procedures. Bidding strategy The tendering process begins with the invitation to tender. (from the contractors point of view). Usually in practice, building contractors does not submit truly competitive tender. After the receiving the invitation, contractor must decide whether to accept or decline tender. If contractor accept, competitive bid must be submitted, however if the contractor does not accept, the bona fide tender still should be submitted. (definition of bona fide need here). Contractors always faced with to crucial decisions which are, whether or not submit competitive tender, and if so what is the bid price should be. Ansoff (1965) suggested five possible courses of action open for the contractor: Reject the project Provisionally accept the project Add it to a reverse list Remove a project from the reverse list and replace it with the current project Unconditional acceptance However Skitmore (1989) pointed out that the limited time available for tender restricts the use of reverse list, therefore normally contractors decide simply from two accept or reject options. Althouh contractor rejected the tender, it does not usually mean that the bid will not be submitted. If the contractor not interested in particular tender, but does not wish to reject (once contractor rejected the tender, it may not be invited to tender again), as it may cause problems in the future, contractor can submit the cover price. In practice, the decision whether or not to submit a tender depends on number of factors. According to the CIOB (1983), this decision depend on the type of work under consideration, if the contractor has an appropriate experience in particular area and necessary resources to prepare documents and carry out the work. However other authors agree that the key points in the decision would be the contractors present workload and availability of key personnel. Odusote and Fellows (1992) made significant effort in identifying the most important factors influencing the contractors decision. In this research, authors identified 42 considerations which are likely to influence the decision considered by other authors. Then constructed questionnaire and sent them to various building contractors each with a turnover of approximately 8m (or higher) per year. Figure 3 below illustrates these factors based on respond of 48 UK building contractors (ranked in order of importance). Client-related factors Type of work Value of the project Contractors current workload Estimating workload Likely profitability of the contract Location of the project Form of contract Physical recourses to do the job Identity of consultants Time available to tender Odusote and Fellows (1992) On the other hand, an American survey handled by Ahmad and Minkarah (1990) identified 31 factors affecting the bidding strategy of top USA companies. Further this list of factors used by Snash (1990) in his study. Snash formulated a questionnaire according to the list of factors, and submitted them to the top UK contractors asking them to rank the most important factor. Finally he received responds from 80 contractors, and the table has been produced based on contractors respond. Figure 4 illustrates the top 20 factors affecting bid/no bid decision. Contractors need for work Number of competitors tendering Experience in similar projects Current work load Owner/client identity Contract conditions Project type Past profit in similar projects Project size Tendering method (open/selective) Risk owing to the nature of the work Project location Type of contract Availability of qualified staff Rate of return Project cash flow Tender period Availability of other projects Availability of labour Completeness of the documents (Snash 1990) There is some similarity between two studies, however that does not necessary mean every contractor has to consider each factor. Some contractor may consider some, but others may consider completely different factors. Contractor should decide rather bid or no bid in particular project regarding his own status and circumstances. By other words, regarding to evidence (Odusote and Fellows, 1992) it can be said, that for large project, it would be decision of group of people rather than one individual. However, there is an alternative factor affecting bid/no bid decision. Contractors who have a number of contracts (portfolio of projects), can balance their overall risks by deciding to tender particular project. This approach first introduced in the financial sector, which basically says that the contractors can afford the risky projects if the overall risk can be reduced by balancing with the other less risky projects in contractors portfolio. Kangari and Riggs (1988) pointed out that this approach can not be used as successful as in the financial organisations. They concluded: à ¢Ã¢â€š ¬Ã‚ ¦Diversification of the project portfolio can generally reduce but not eliminate overall risk exposureà ¢Ã¢â€š ¬Ã‚ ¦ Bid price After the decision to tender, contractor will be faced by the next important decision which is bid price. Normally contractor estimates the bid price according to the necessary inputs on the process. The management process estimating the level of bid price called adjudication. A significant number of researches have been carried out for last 40 years about submitting the best bid price. Different studies concentrated various model of bidding. If one researchers developed the mathematical model, method based on historical data, statistical bidding models and econometric based model, others concentrated on less mathematical models such as human decision-making process. However Moselhi et all. (1993) states: Markup estimation is a decision problem that is so highly unstructured that it is difficult to analyse and formulate an adequate solution mechanism. It is both time consuming and complicated to identify all the related factors that form a rational basis for such decisions, analyse their individual strength, and then quantify their combined impact on the decision. The usual practice is to make bid decisions on the basis of intuition, derived from mixture of gut feeling, experience and guesses. This implies some sort of pattern recognition is used rather than computation or deep reasoning about the problem elements. Alternatively, Park and Chapin summarised their research that: Many different theoretical approaches to competitive bidding have been proposed and tested with varying results. Any of these strategies should improve the contractors bidding effectiveness, and whichever one works best for a particular competitive situation is obviously the best one to use. It will be worth whatever time is required to at least become familiar with the different approaches; they all offer some good ideas, and even a bad plan is better than no plan at all. Factors considered by contractors Adjudication is the process about getting the best possible bid price, during which contractors should consider number of factors. Eastham (1987) identified 90 factors which are likely to affect the bid price. During the research questionnaire had been sent to ten contractors who identified only five most important factors. However those responds had not considered as important as in Easthams research. Subcontract requirements Type and size of job Competitors Client and professionals Labour requirements (Eastham 1987) Snash (1990) also identified factors affecting the bid price. This has been done through formulating the questionnaire. Degree of difficulty of the work Risk owing to the nature of the work Current workload Need for the work Contract conditions Anticipated cost of liquidated damages Owner/client identity Past profit in similar work (Snash 1990)