What Makes Shakespeare’s Hamlet Popular?

The Enduring Popularity of Shakespeare’s Hamlet

Why is Hamlet so popular? Shakespeare wrote countless masterpieces, many of which are debatably more exciting (The Tempest), momentous (Macbeth), intriguing (Othello), romantic (Romeo and Juliet) and profound (King Lear). But not only has Hamlet been produced more by the Royal Shakespeare company than any other work, it is a favourite of troupes (and audiences) around the world. From the play’s inception in 1602, up until the National Theatre’s acclaimed production in 2000 (and beyond), Hamlet has captured the imagination. A close examination of the play, along with a careful focus on its themes, will shed some light on Hamlet’s 400 year old enthrall, with a special emphasis on its relevance to a modern British audience.

Hamlet is a tale of revenge, murder and existential and spiritual angst. The title character is a young prince whose father, the King of Denmark, has unexpectedly passed away. His brother, Claudius, has inherited the throne and taken the former king’s wife as his own. Hamlet is visited by his father’s ghost, who informs him that he was murdered by Claudius, and that his death needs to be avenged. Instead of instantly doing so, Hamlet attempts to first confirm his uncle’s guilt by feigning madness, and later by staging a play of the murder, to which Claudius’ reaction essentially confirms his guilt. But even with the evidence in hand, Hamlet is still unable to enact his revenge. After accidentally killing the king’s councilor Polonius, he is deported to England, and upon his return enters into a duel with Polonius’ son, Laertes. However, the fight is a setup; Laertes’s blade is poisoned, as is the wine in a goblet from which Hamlet is to drink. While Hamlet wins the duel and ends up killing Claudius, he too succumbs to the poison and dies.

In the play, Hamlet is by far the major presence: his problem is central to the plot, and his public and private exultations and speculations dominate the action (Hoy, 1991). Furthermore, the role of Hamlet is far larger than any other in all of Shakespeare’s works. While the play is filled with ambiguities, the biggest of all have to do with Hamlet’s motivations and actions (Levin, 1959). There is always more to him than the other characters in the play can figure out. Part of this has to do with the way Shakespeare crafted him – his intense pensiveness, his uncertainness, the vagaries of his actions – but part of it is Hamlet himself, who actually tells other characters that there is more to him than meets the eye, notably his mother and Rosencrantz and Guildenstern. In addition, when he speaks, he sounds as if there’s something important he’s not saying, maybe something even he is not aware of (Hoy, 1991).

What separates Hamlet from other revenge plays is that the action we expect to see is continually postponed (Wilson, 1951). Instead of being based on activity, the play is all about character, and really only the character of Hamlet. Many people regard Hamlet as a play about indecisiveness, but more than this, it can be seen as an examination of action itself; that is, the conditions necessary for such, and the appropriate amount required, depending on the circumstances. The question of how to act is affected not only by Hamlet’s need for certainty, but by emotional and psychological factors (Halliday, 1964). Hamlet himself appears to distrust the idea that it’s even possible to act in a controlled, rational way. For when he does act, he does so swiftly and recklessly. This extreme shift from paralysis to impulsiveness further adds to his enigmatic nature.

Without action to sustain the play, the plot instead revolves around Hamlet contemplating various questions, among them: Is the ghost what it appears to be, or is it really trying to deceive him? How can the facts about a crime be known without there being any witnesses? Can Hamlet know the intricacies of Claudius’s soul by studying his behaviour? Can we ever really know whether our actions will have the consequences we want them to have? Can we know what happens in the afterlife? (Levin, 1959).

This last question is one of the most powerful throughout the play. There are times when Hamlet seems to feel that death itself may bring the answers to his deepest concerns (Wilson, 1951). The question of his own death plagues him, and he more than once contemplates whether or not suicide is a legitimate choice in an unbearably painful world. Hamlet’s grief is such that he frequently longs for death to end his suffering, but worries that if he commits suicide, he will be suffer eternally in hell. In his famous “To be or not to be” soliloquy, Hamlet concludes that no one would choose to endure the pain of life if they were not afraid of what will come after death, and that it is this fear which causes morality to interfere with action (Levin, 1959).

In sum, Hamlet, is ambiguous, vague and mysterious, uncertain, indecisive and pensive, self-loathing and self-reflexive, simultaneously afraid to live and afraid to die. Is it any wonder then that people can relate to him? People enjoy Hamlet because he evokes their sympathy. His character is flesh and blood. He doesn’t just act; he thinks, he questions, he feels. Hamlet is extremely philosophical and contemplative, and takes the time to analyze difficult questions that cannot be answered with any certainty. His melancholy is in many ways endearing. Though his actual age is debatable, in essence he is the quintessential teenager, afraid to grow up and take on burdens and responsibility he knows he must and yet is not ready for. His urgency is contagious. Beyond this, there are the questions he deals with, primarily those of death and the afterlife, that haunt us all. It is extremely rare to not only hear such questions so well articulated, but to hear them articulated at all. These conversations are largely relegated to our own heads. They are intimate and personal, and are seldom expressed. To see them on stage is to bear witness to our own souls.

But this only explains why the character of Hamlet is so popular. Though he dominates the course of the action (or lack thereof), there is another reason why the play itself has been so successful and so resonant, which has to do with the famous line: “Something is rotten in the state of Denmark” (Hamlet, I, iv, 90). Everything is related in Hamlet, including the health of the ruling royal family and that of the nation as a whole (Hoy, 1991). Throughout the play, there are explicit connections drawn between the two. Denmark is often described as a physical body made ill by the moral corruption of Claudius. While the dead King Hamlet is portrayed as a strong, noble ruler under whose guard the state was in good health, Claudius, is regarded as wicked, corrupt and out to satisfy only his own appetites (Wilson, 1951). Throughout history, similar correlations have been made, from Stalin and Hitler to Blair and Bush. While the latter pair are perhaps far less sinister, their political decisions have similarly shaped the perceptions of the citizens of the nations they lead, as well as the perceptions of those on the outside. Our leaders are responsible for the overall “health” of the state, and the war in Iraq and other actions are doing little at the moment to paint a picture of good health. Close observers of Hamlet, no matter of what time period, sense this parallel instantly.

Modern society, specifically the UK, is still in Hamlet’s thrall. In today’s world, with so many problems and too few solutions, it is easy to feel powerless and paralyzed. There are choices to be made, and actions to take, but 1) which ones should be carried out and 2) will they even do any good? The modern person is at a crossroads, and in some ways Hamlet personifies this better than anyone else. Throw in the play’s description of the state as being deceased, and the work comes across almost as the poster child for modern malaise. This is evidenced in the 2000 production by the National Theatre, which is only one of many recent and successful incarnations of the play. The title role was played by Russell Beale, who prepared for the part by looking into himself in an attempt to bring out the “everyman quality” of Hamlet, along with his intense self-reflection and (albeit feigned) madness. To do justice to Shakespeare’s words, in this case gravitating between wit, wryness and self-reflection, Beale decided not to force emotion, but to instead “get there slowly, to get the emotional arc right, and not find too many moments of crisis” (Beale, 2000). The actor, in perhaps a bit of method, decided to try and capture Hamlet’s grief by using his own, in this case the fact that his mother died a few weeks before the performance. He also used his frustration over “not being able to feel enough” to further cement and perfect his interpretation (Beale, 2000). By all accounts he didn’t disappoint.

The Independent declared Beale’s Hamlet “not at all ‘Hamlet-like,’ and his performance “moving and crystal clear,” characterized by “an aching regret for the world that might have been rather than a seething contempt for the world that exists” (Taylor, 2000). When Hamlet returned from England, the reviewer found him emanating a “shyly gracious acceptance of the mystery of life and fate,” and in dying “moved towards the audience as if painfully and belatedly conscious of their presence, imparting an even more shattering sense of the waste of a noble life” (Taylor, 2000).

The Evening Standard wrote that the performances illuminated the text in ways that made it fresh and accessible, and Beale’s performance of “clarity, humanity and humility held the audience spellbound…they could only suffer with his confusion, grief self-loathing and doubt” (de Jongh, 2000).

The Guardian complimented Beale for being “everything one could hope for: witty, ironic, intelligent, ‘a Henry James who is also a swordsman’ to borrow Harold Bloom’s phrase,” and: “bookish, inward, reflective and intensely capable of self-scrutiny” (Billington, 2000). Furthermore, the paper admired his “capacity for surprise, moral sensitivity and parodic wit” and his ability to convey “the paralysis of the intellectual caught up in a world of realpolitik,” resulting in a “first-rate, deeply intellectual Hamlet whose weapons are primarily verbal and who understands that revenge cannot offer meaningful redress” (Billington, 2000).

In the National Theatre’s production, along with countless others over four centuries, a central theme is constantly repeated: Hamlet’s self-loathing, specifically in regards to his lack of feeling, which, as much as his lack of action, makes him guilty. This aspect of his character is perhaps more relevant today than ever. The theme of powerlessness, along with the tangible frustration and guilt that comes with it, can easily find a home in the mind of a modern audience member. In addition, Hamlet’s intensely relatable “human all too human” qualities, his probing thoughts on the afterlife and the theme of the “nation as diseased body” are so universal and timeless that they shed much light on the play’s appeal. Perhaps there will come by a day when Hamlet fails to strike a chord with audiences. But for now, Shakespeare’s masterful creation and revolutionary character study is safely ingrained in our consciousness.

Bibliography

Beale, Russell. “The Readiness is All.” National Theatre, 2000. http://www.nationaltheatre.org.uk/?lid=2485

Billington, Michael. The Guardian, September 6, 2000.

Crystal, David, and Crystal, Ben. The Shakespeare Miscellany. Penguin: New York, 2005.

de Jongh, Nicholas. The Evening Standard, September 6, 2000.

Halliday, F. E. A Shakespeare Companion 1564-1964. New York: Penguin, 1964.

Hoy, Cyrus. Hamlet: An Authoritative Text, Intellectual Backgrounds, Extracts from the Sources, Essays in Criticism. New York: W. W. Norton and Company, 1991.

Levin, Harry. The Question of Hamlet. New York: Oxford University Press, 1959.

Shakespeare, William. Hamlet. Braunmuller, A.R., Orgel, Stephen (Eds.). New York: Penguin Classics, 2001.

Taylor, Paul. The Independent, September 6, 2000.

Wilson, John. What Happens in Hamlet. New York: Cambridge University Press, 1951.

Traffic Congestion

Introduction:

Traffic congestion is a critical problem which happens on roads which make traffic busy because roads full of cars and buses. Traffic congestion challenges traffic flow in urban area and is prevented smooth traffic. A growing urban area creates complex problems in daily life with traffic. Congestion phenomenon’s can not be terminated only by applying physical constructing such as: build bridge, motorways and increasing road capacity. It is necessary to build technology system for transportation management which is used for control of the traffic phenomenon. Traffic control systems have direct influence on traffic problems which is help to improve traffic flow and reduce traffic congestion. Usually, traffic jams are caused by many reasons such as incidents, works in roads, roads maintenance. Approximately, traffic congestion occurs at peak times in the morning or evening when people are travelling to work. In addition, transportation systems are one of the main reasons causing traffic congestion in some countries. Traffic roads have a direct effect on traffic jams which relate to small ways use or damaged ways (Katathira et al, 1994)

Firstly, when K. Macmillan invented the first cars had proper shape and wooden frame in 1839 which included many types of advantages such as: motion speed; comfort; control; economy; furniture and safety. The Automobiles industry became more popular and necessary for the life and it aimed to improve car’s industrial design and create more cars by companies. In the end of 18th century, the first traffic congestion appeared on the old London Bridge which created a serious problem. After that, the London government decided to find way out for this phenomenon which led to the invention of control system to solve traffic congestion by installing traffic lights on the old London bridge. In addition, the London government added another control system by dividing the London old bridge into two paths, one for vehicles and another for pedestrians (Bellis, 1994).

Transportation problems have been studied by many researchers and many solutions have been proposed to solve it. Improving transportation includes many ways to improve traffic performance in major cities and motorways. The Government is responsible for improving the efficiency of transportation in cities and highways between cities which reduce traffic problems. Transportation blockage has a clear influence on economic situation and it causes increased in live cost.

The aim of this paper is to discuses the effects of control systems can reduce traffic congestion, energy consumption and road incidents. It is important to understand the link between traffic congestion and control systems. However, there are some solutions to decrease their negative effects.

Background
Traffic congestion, definition

Traffic congestion is complex phenomenon which is related to a number of cars on the road at the same times which is hinder motion and need extra time to reach destinations. In fact, traffic congestion is usually recurring or non recurring phenomenon. Always, recurring traffic congestion is appeared by daily event in a certain times which is solved reorganize suitable planning. On the other hand, non recurring traffic congestion is unexpected and unusual event cause by an incident which is suddenly reduced road capacity. In addition, road capacity is one of the main reason cause traffic congestion when the number of cars on the road increases than the road capacity. (Logi, 2001)

Control system

Control system is approach to remedy traffic phenomenons by applying technology, programming and tolls. In the end of 18th century, the first control system was applied in London by traffic light which was used to organize traffic motion on London old bridge. A growing in urban area encourage government to invent and apply a new technology has ability to reduce traffic problems which is called traffic control system. The aim of this section is to describe effect traffic congestion by traffic control system because traffic control system has direct influence on traffic problems which is helped to improve traffic flow and solve traffic problems by apply a number of system factors such as: traffic lights; road pricing; travel times; gasoline tax; transit fare and speed limitation.

Literature review

In spite of, the link between control systems and traffic congestion is important; there appear literature dearth which is especially in evidence of appropriate systems. Therefore, there is calculated and experimental evidence. As a result, the relationship between control system and traffic congestion was investigated in 1994 by Shefer which had divided volume over capacity ratio which was used to measure level of traffic congestion. Then after, in1997 the relationship between traffic congestion and control system was studied by Shefer and Rietveld which is used sample hypothesis and provide experiment evidence by comparing traffic congestion level when peak hours the traffic congestion level was less than peak hours in usually days. Further study, by Noland and Quddus in 2005 who was used link between traffic congestion and control system by using spatial analysis manor in London. This study achieves lower traffic congestion by applying several types of control systems (Wang et al, 2009).

Type of problems

The most type of problem that is happening in big cities is traffic congestion. Traffic congestion has high impact on smooth traffic which cause limes lose, work opportunity and energy consumption. However, traffic congestion has influenced in the city live which become extremely complicated and difficult for life. The most common with traffic congestion are road accident and road capacity which can be blockage traffic flow in cities or in country side for example in London congestion occur in some area not during peak time always during all day which cause time loses and it become serious problem which encourage the governments to find out solution for this phenomenon to decrease it and avoid many problems relate with traffic congestion which can be make life smooth and uncomplicated. Transportation system challenges by traffic congestion which is importance to develop transportation systems by using new methods and useful technology which can alleviated or decreased level of congestion in urban area. According to ( Logi , 2001) point out that traffic congestion is recurring and non recurring congestion which is appeared when traffic volume increase than road capacity in a certain times. Always, recurring traffic congestion connect with daily event thought non recurring traffic congestion connect with unexpected event by road incident or road works. This phenomenon has been studied by many researchers which aim to find approaches or solution for traffic congestion.

Toyota Motor Vehicles: SWOT Analysis

Toyota Motor VehiclesBackground

Toyota Motor Corporation is a famous Japanese multinational corporation, and is considered the world’s second largest automaker of automobiles. The founder of Toyota is Kiichiro Toyoda, who born in 1894, and the son of Sakichi Toyoda, who was popular in the invention of the automatic loom.

Toyota motors became a mainstay of Japan economy 1n 1960. And it get great growth in this time. And the annual sale of TMC in Japan was about one million dollar I 1962

Introduction

Toyota Motor Corporation, being a multinational is the world’s largest automaker in terms of sales volume. As of 2008, Toyota employs approximately 316,000 people around the world in comparison to second ranked automaker General Motors’ 266,000 employees. The company is mainly engaged in automobile business and financial business.

In end of 1989, Toyota started its manufacturing in Europe by having two main manufacturing plants working in UK. It provides all ranges of cars from mini vehicles to big trucks.

Toyota Philosophy

Toyota’s management philosophy has evolved from the company’s origins and has been reflected in the terms “Lean Manufacturing” and Just In Time Production, which it was instrumental in developing. The Toyota Way has four components: 1) Long-term thinking as a basis for management decisions, 2) a process for problem-solving, 3) adding value to the organization by developing its people, and 4) recognizing that continuously solving root problems drives organizational learning.

They deals in wide range of cars like:

Avensis
Previa
Dyna
CBU Camry
Coaster
Land cruiser Prado
Fortuner

Toyota Motor’s main competitors:

General Motors (GM): It was the world’s largest selling vehicle producer but their market shares were decline in the 80’s and mid 90’s.
Ford: It was the second largest motor car selling and profit making company in the world right behind the GM Company.
Chrysler: It was the third main competitor of Toyota. The company was almost gone bankrupt during the 80’s but their government support their company and saved them.
Main Body
SWOT Analysis
(S)trengths

One of the main biggest strengths of Toyota is the JUST IN TIME concept. Just in Time spirit implies to the two opposing forces of providing fast and

flexible response, and yet building mechanisms and systems that are efficient and waste-free. The concept is to provide the right product and information, at the right time, in the right amount, in the right manner, while maintaining high standards of efficiency and cost control. JIT has resulted in ZERO inventory and enormous saving in the cost.

The company has recorded a strapping financial performance in recent years. Toyota Motor’s revenues increased at a compound annual growth rate of 11.1% during 2004-08.The Company also had witnessed a considerable increase in profitability. During 2004-08, the average operating profit margin and net profit margin of the company stood at 9.1% and 6.5%, respectively. The strong financial performance of the company has contributed to its market domination. This, in turn, enhances investors’ confidence in the company for investment.

Toyota is one of the top leading automotive brands in the world. In the annual ranking of top 100 global brands by BusinessWeek and Interbrand in 2008, Toyota figured in the sixth position. According to the survey, Toyota’s brand value has increased by 6%, to reach $34.1 billion in 2008. In addition, it is the highest ranking automotive brand name in the world. It is ranked well ahead of its competitors like Mercedes, BMW, Honda, Ford, Hyundai, Porsche and Nissan. For instance, in the same period, Ford has been faced with a number of troubles, including a failure to meet its goals for SUV mileage gains or to exploit its well-regarded Escape hybrid; subsequently, the brand value of Ford fell by 12%, to $7.9 billion in 2008. Toyota’s luxury car, Lexus, also has an independent ranking in the top 100 global brands. The brand value of Lexus was around $3.6 billion, with a ranking of 90. Some of the other popular product brands of the company include

Corolla, Camry, Sienna, Prius and Scion. The company’s strong brand image gives it considerable competitive advantage and helps the company to register higher sales growth in domestic, as well as in international markets.

In 2003 Toyota has beaten its rival Ford into third spot, to become the World’s second largest carmaker with 6.78 million units. The company is still behind rivals General Motors with 8.59 million units in the same period. Its strong industry position is based upon a number of factors including a diversified product range, highly targeted marketing and a commitment to turn manufacturing and quality. The company makes a large range of vehicles for both private customers and commercial organizations, from the small Yaris to large trucks. The company uses marketing techniques to identify and satisfy customer needs. Its brand is a household name. The company also maximizes profit through efficient manufacturing approaches (e.g. Total Quality Management).

(W)eaknesses

Usually big setup faces problems during oversupply as in it the company need to make sure that it is the models that consumers want. Toyota markets most of its products in the US and in Japan due to which they are always exposed to fluctuating economic and political conditions. Perhaps that is the reason that now the company is beginning to shift its attentions to the emerging Chinese market.

Toyota Motor provides pension benefits and other post-retirement health and life insurance benefits to employees. During the Year 2008, the company incurred post retirement benefit expenses of approximately $709.1m. The company also paid a total of approximately $671.5m for the post retirement benefit plans during 2007. Furthermore, by the end of March 2008, the company’s projected pension and post-retirement benefit obligations stood at approximately $14,865.9m as compared to the planned assets of approximately $11,256.4m, resulting into an unfunded status of approximately $3,609.5m. Sizeable unfunded post retirement benefits would force the company to make periodic cash contributions towards bridging the gap between post retirement benefits obligations and planned assets, which would reduce cash available for growth plans.

The company needs to keep producing the cars in order to retain its operational efficiency. Car plants represent a huge investment in expensive fixed costs, as well as the high costs of training and retaining labor. So if the car market experiences a down turn, the company could see over capacity. If on the other hand the car market experiences an upturn, then the company may miss out on potential sales due to under capacity i.e. it takes time to accommodate. This is a typical problem with high volume car manufacturing companies.

(O)pportunities

Worldwide demand for light hybrid electric vehicles (HEV) is estimated to reach 4.0 million units by 2015. Rising energy costs and increased emissions regulations are likely to increase the demand for HEVs, as hybrid engines are more fuel efficient and less polluting than conventional gasoline and diesel engines. The primary markets for HEVs will be within Triad countries (the US, Western Europe and Japan), although the quickly growing Chinese market is also expected to experience relatively strong demand for these fuel efficient and environmentally friendly vehicles.

Toyota Motor Company is keen to capitalize on the growing demand for hybrid electric vehicles. The company has spent a large amount of money for the development of hybrid vehicles over the years. The accumulative total of Toyota Motor’s hybrid vehicle sales reached 1.5 million in June 2008. Furthermore, the company plans to expand its hybrid lineup and achieve annual sales of one million hybrid vehicles by early 2010. For this, the company plans to introduce demand-creating products. The company also launched models such as the Prius and LS600h hybrids at the 2008 Beijing International Automotive Exhibition, held at the new China International Exhibition Center in Beijing. The company’s emphasis on hybrid technology will enable it to capitalize on the positive market trends in this segment to enhance its market position

Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance technologies developed by the organization. Such moves can only firm up Toyota’s interest and investment in hybrid R&D.

Toyota Motor has launched several new models in year 008. For example, in April 2008, Toyota Company has displayed a total of 50 concept vehicles at the 2008 Beijing International Automotive Exhibition. The company has launched its models including the compactYaris, the new Vios and Lexus LX570 SUV, along with concept cars such as the iQ compact and the personal mobility vehicle ‘i-REAL’. The company also displayed models such as the Prius and LS600h hybrids and the GOA (Global Outstanding Assessment) collision-safety body represented by a Camry and Crown models. Besides helping to garner additional revenues, new models will also help the company to revamp its aging model line up

Toyota is going to target the ‘urban youth’ market. The company has launched its new Aygo, which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a very competitive segment. The vehicle itself is a unique one.

Convertible, with models extending at their rear! The narrow segment is notorious for it narrows margins and difficulties for branding.

(T)hreats

The worldwide automotive market is highly competitive. Toyota Motor Company is facing tough competition from other automotive manufacturers in its various markets. The competition among various auto players is likely to exaggerate in light of continuing globalization and consolidation in the worldwide automotive industry. The factors affecting competition include product quality and features, the amount of time required for innovation and development, pricing, reliability, safety, fuel economy, customer service and financing terms. Increased competition may lead the company to lower vehicle unit sales and increased inventory, which may result in a further downward price pressure and can negatively affect the company’s financial condition and results of operations.

The European Union (EU) Commission and the EU Parliament have adopted a directive that establishes increasingly stringent emission standards for passenger and light commercial vehicles for model years 2005 and thereafter. Under the directive, manufacturers will be responsible for the emission performance of these vehicles for five years or 100,000 kilometers, whichever occurs first. A more stringent Emission standard (EURO 5) is also on the table of the EU legislative bodies and is likely to be effective from 2009. This will create more tough competition to work in EU as they would require more to concentrate on quality which will increase their cost and will lead to increase in prices by which the other competitors in the area would take advantage as their home land?

As with any other car manufacturer, Toyota is facing great deal of competitive rivalry in the car market. Competition is increasing almost on the daily basis, with new entrants coming into the market from China, South Korea and new plants in Eastern Europe. The company is also exposed to any movement in the price of raw materials such as rubber, steel and fuel. The key economies in the Pacific, the US and Europe is also experiencing slowdowns. These economic factors are potential threats for Toyota.

PEST Analysis
(P)olitical

Toyota had a lot of help from the local government, including tax breaks. The company is likewise linked closely to the policies ofgovernments, the earnings of banks. Toyota is currently dominated by little more than a handful of firms, each wielding colossal financial, emotional and political power. The company’s approach to dealing with political institutions has not always been brilliant. It tends to be good on technical issues, although it has not always fully presented the longer-term options, in order to make the choices and their implications clear. Toyota is expected to ‘sell’ Indiana and its assets to the world.

(E)conomic

For much of the developed world, Toyota Company is a pillar company in auto mobile business, a flag of economic progress. The Toyota Company has been a core company, a unique economic phenomenon, which has dominated the twentieth century. However, the automobile industry including the Toyota now suffers from a series of structural schisms and has become riddled with contradictions and economic discontinuities. For the capital markets and the finance sector, it has lost a lot of its significance, as a result of ever declining profits and stagnant sales. The proliferation of products means that it has become hopelessly wasteful of economic resources. While all these and more sound like a very gloomy assessment of such a vast economic phenomenon, the industry is not in the end despondent. A different future is possible for the industry, a highly desirable one.

(S)ocial and Cultural

Toyota’s ability to bring to market world-class vehicles depends, in large part, on the craftsmanship and hard work.

As part of the development in automotive industry, the Toyota Company actually affects the society as a whole. It employs millions of people directly, tens of millions indirectly. Its products have transformed society, bringing undreamed-of levels of mobility, changing the ways people live and work. The social value of the additional mobility that this industry brings involves the value of the people being able to commute over longer distances easily, among many others. There are, on the other hand, particular social issues to address in many developing countries, often those that are the result of an undertone of religious faith. Toyota company has the role to

play in helping develop the mobility of such countries and it can be achieved at an acceptable social cost of the country is prepared to learn the necessary lessons from those who have traveled this route before it, and to make the necessary investments.

(T)echnology

In 1994, the Toyota Company had given its employees the challenge to bring up with new technological change in cars. The car for the 21st century. For this purpose a special team was developed to make the car. This team was named as G21 team. In 1997; Toyota’s G21 team made a car which is both fuel efficient and environment friendly as well. They made a hybrid car named as Prius. This car was a major success in Japan at that time. Till that time Toyota hasn’t introduced this technology outside Japan. In 2001 Toyota introduces hybrid cars worldwide. Hybrid car can be run on engine or battery or both. The production of first hybrid car in Europe was started in 2010. Success of hybrid car can be shown by the fact that over 3,000,000 cars were sold worldwide.

There are different models of hybrid cars had been made so far which are as follows,

NHW10 Model (1997-2000)
NHW11 Model (2001-2003)
NHW20 Model (2004-2009)
NHW30 Model (2009-till present)
Recommendations

Toyota is being one of the top motor vehicle producers in the world still needs to do a lot more improvements regarding their quality and services by taking seriously the consumer complaints

Since last few months the company is facing some quality issues which need to be rectify soon because some researchers are also pointing out these which is creating a bad impact for the company and its market share.

Toyota also had added some experts containing both consumers and experts. They had been recommended by their union back in Japan to review their quality but they are not directly affiliated with the Toyota Company. They also need to review these members and had to directly affiliate them with Toyota.

Toyota’s main hazard in their success had been their big recall of its cars all over the world. The company had failed to identify and solve this issue and this can create big impact in their sales and perception of their customers while purchasing car. So they need to rectify and solve this problem quickly so that the image of the company can be retained.

Moreover they also should make a proper consumer profile on their website as well. This will enable them to easily identify its consumers and make the strategy for marketing according to that.

The company had used social media like face book and twitter for the consumers. It is the demand of the time of these days but the problem is that they are not making good use of it. Their participation through these is almost zero. If they improve on that participation and make it more active then that will help the company a lot and can be a good marketing source as well.

Significant Changes of Toyota

Our choice to pick Toyota was due to the significant changes it has gone through over the years. When Toyota first came into the market; nobody was willing to buy this Japanese car that they knew nothing about. But as time has gone by they have proved themselves to be one of the most reliable cars that can be found in today’s market. A radio producer in Kenya once said ‘every car in front of you and behind you is a Toyota’ (Juma, 2002) and indeed it is true.

Toyota’s decision to make this hybrid car was driven by both internal and external forces. It has been noted that the ‘hybrid Camry will be the first commercially available hybrid vehicle built in Australia. The decision was announced in June 2008 to begin manufacturing a hybrid version of the Camry Sedan at the Altona plan in Melbourne from the beginning of 2010’ (www.toyota.com.au). Looking at the internal forces first Toyota is ‘committed to developing hybrid systems as a core technology. Globally, the goal is to reach one million hybrid sales per year during the 2010s. Toyota’s worldwide goal is to approach zero impact on the environment in all our activities, including vehicles and production. While we may never be able to achieve zero impact, we always strive to do better – and hybrid technology is an important part of that effort’ (www.toyota.com.au). There is constant need to improve their cars-not that they need that much improvement but in the sense of safety and efficiency for its customers. External forces are the need to stay on top of the competitive market. All automobile companies are constantly making a new car or adding features to a new car. For Toyota to maintain its name and customers and attract new customers the hybrid was the best way to go about this.

2. DRIVING FORCES

The forces which has no or minimal control by the Toyota Production System (TPS) are termed as External factors. These can be further classified into three categories. 1.Technological developments 2.Competitive environment 3.Social and Political pressure

2.2 Economic

With the current global financial crisis hitting virtually the entire world, and as mentioned above the fluctuating fuel prices, there is bound to be a change in the consumer spending and price of most commodities will definitely be affected. It is in this aspect therefore those organizations will have to change so has adapted to the dynamism of the ever rapid globe and become relevant to the consumer in both product and services that they do offer in the market.

2.3 Social

The current social trend is “go-green” which basically means being environmental cautious more of the eco-solution lean towards the conservation the earth- less pollution. The trend particularly in the automobile world is the one moving from fuel guzzlers cars to eco-friendly cars more of hybrid cars which the Toyota organization has done well to rebrand themselves’ as the automobile industry of the future.

2.4 Technological

Environmental factors have driven TPS (Toyota Production System) to excel in their Technological developments. As a result TPS introduced hybrid vehicles, which are more fuel efficient and eco friendly. This external factor has transformed TPS from an ordinary passenger car manufacturing company to a Technology innovative company.

With the new innovation particularly in the fuel conservation, Toyota Australia leads in the domestic market through its ‘variable value timing intelligent technology’ (www.toyota.com.au , 2009). The VVTI technology makes it stand out from the other car manufactures. The organization is also distinctive in its development management styles such as the ‘just-in-time’ and ‘Toyota production system’ (www.toyota.com.au , 2009) which are incorporated by the Toyota Australia.

2.5 Competition

Competitors in the automobile industry have been a key player for TPS development. In order to sustain in the market TPS reengineered some technological advancements and gadgets from their competitors such as Cruise control, Auto gearing in their products. (Driel, Dolfsma, 2009)

Competitors in the automobile industry have been a key player for TPS development. The automobile industry has the most furious competition in the world, with the greatest Toyota competitors being, Honda which is from Japan. Toyota however stands alone due to its capability to change its technology and conform to its changed environment, particularly the fuel efficiency aspect

3. CHANGE PROCESS & MODELS

Following the strong desire that both the Federal and Victorian governments had for new environmental friendly technologies; Toyota decide to come up with an eco-friendly car, the hybrid. In addition to that; ‘the growing demand for our Prius hybrid also confirmed that there is a need for more hybrid models in our line up’ (www.toyota.com.au).

As purported by the ‘equilibrium theory of change’ (Abernathy & Utterback, 1978; Imai, 1986; Tushman & Romanelli, 1985) comes the crucial fundamental understanding that ‘change occurs in a series of radical and incremental changes’ (Abernathy & Utterback, 1978; Imai, 1986; Tushman & Romanelli, 1985). With emphasizes from (Kofoed, et al.2002) stating in other words that ‘the above theory claims that an organisation-just like an organism- is pressured by periodic environmental events to change dramatically or else perish’. So strong is this notion that it is further illustrated without any reasonable doubt by the Toyota organisation worldwide and to be specific Toyota Australia too. The Toyota Australia has conceptualized the essence of the ‘equilibrium theory of change’ (Abernathy & Utterback, 1978; Imai, 1986; Tushman & Romanelli, 1985) more so by embarking on radical changes that are all geared towards the improvement of structural process and systems within the organisation. The Toyota Australia uses both the continuous improvement process and re-engineering process.

3.1 Continuous improvement process

The essences of Toyota Australia continuous improvement process is its quality management programmes and to be emphatic ‘Toyota production system’ (www.toyota.com.au). The organisation through the ‘Toyota production system’ (www.toyota.com.au) are enabled to provide its customs with the highest quality cars and at the same time services. At the heart of this system is the ‘Kaizen’ (www.toyota.com.au) which is the ‘absolute elimination of waste and helps workers to be more efficient’ (www.toyota.com.au).

3.2 Re-engineering process

As mentioned before, Toyota Australia makes use of this process because it has identified its distinctive competences that differentiate itself from other auto-motive industries are the fuel efficient cars that they produce. The organisation emphasises is on high-quality performing fuel efficient engine cars, ‘at lowest possible cost, in a timely manner with the shortest possible lead times’ and its ‘Just-in-time management schemes’, (www.toyota.com.au). The car prices are relatively cheaper in comparison to other brand of cars from different industries. The core process without any doubt is the ability to come with a hybrid car of the future, since customers are keener about other alternatives of fuel consumption. The ability of such innovation adds value to customers thus the perception that, Toyota Australia is a ‘series of processes from strategic planning to after-sales’, (Robbins & Judge, 2007).

3.3 Lewin’s three step model

Lewin’s three step model of unfreezing, movement and refreezing can be noted in the change cycle used by Toyota. Unfreezing is the process of overcoming pressures of both individual resistance and group conformity (Robbins, 2007, p651). This is the status quo that all automobile companies share. Then comes the movement stage that transforms the organisation from the status quo. Toyota’s movement stage was to develop the hybrid that has both petrol engine and an electric motor which recharges itself as the car is driven. The refreezing stage involves stabilizing the change model. This is quite evident in Toyota as seen in the success of the Prius. Sorensen adds on by telling us that companies with strong cultures excel at incremental change’ (2002).

‘The Prius has been recognised globally as a ‘clean’ vehicle achieving many awards and certification to the toughest environmental standards in the world. Many other engine technologies are yet to achieve emissions low enough to satisfy these emerging low emission standards’ (www.toyota.com.au). This is bound to bring about a competitive advantage over its rivals. Imitation of this may be quite costly and take

Developing such a change has involved a lot of processes, knowledge and most importantly costs. Toyota is still very committed to its customers and maintains that trust by developing this new car that not more efficient but also environmental friendly for our future. To show its loyalty customers are guaranteed to an after sales service for three years or up to 600,000kms. As we have been told by Toyota; ‘We are committed to sound environmental management for a sustainable future which in turn improves our business performance. Toyota Australia’s environmental performance, initiatives and technologies are further explained throughout this site’ (www.toyota.com.au).

3.4 Organisational development model

Toyota Australia is an organisation whereby people are given respect and this aspect of the organisation is enshrined as part of its core value thus making it different, more of a standalone auto-motive industry. The other aspects of this change model that are used by Toyota Australia are trust and openness. These two characteristics are nurtured through having ‘authenticity, openness and a supportive climate’ (Robbins & Judge, 2007) in the organisation. Team building is also another characteristic that is embedded in the Toyota Australia organisation and in the processes helps in managing change. Last but not the least is the characteristic of confronting problems with again Toyota organisation having a notion of not ignoring or shrugging of problems. On the contrary these problems are dealt with amicably with innovation for a better organisation presently and in the future always in mind.

4. CONCLUSION

‘If an organisation needs to survive, it must respond to changes in its environment. When competitors introduce new products or services, government agencies enact new laws, important sources of supply go out of business, or similar environmental changes take place, the organisation needs to adapt’ (Robbins, 2007). Toyota has realized that early enough and brought out a car that will be very helpful in the future as it is now. This success and competitive edge has kept Toyota in the world’s top ranking.

REFRENCES
Abernathy, W.J, Utterback, J.M (1978), “Patterns of industrial innovation”, Technology Review, Vol.80, pp 40-7.
Busk Kofoed, L (2000), “Experimentarium as arena for common learning during change processes”, Processes in Human Factors and Ergonomics in Manufacturing,
Driel V Hugo, Dolfsma Wilfred (2009), “Path dependence, initial conditions, and routines in organizations”, The Toyota production system re-examined, Journal or Organizational change Management, Vol. 22 No.1, 2009, pp. 49-72.
Imai, M, (1986), Kaizen, McGraw-Hill, New York, NY.
Robbins, S. P and Judge, T. A, (2007), Organisational Behaviour, 12th Edition, Prentice Hall, upper Saddle River, NJ.
Sorensen, J. B, (2002), ‘The strength of Corporate Culture and the Reliability of Firm Performance,’ Administrative Science Quarterly, pp 70-91.
Tushman, M.L, Romanelli, E (1985), “Organisational evolution: a metamorphosis model of convergence and reorientation”, Research in Organisation Behavior, pp 171-222
Anonymous (2000), CI Changes: From Suggestion Box to Organisational Learning – Continuous Improvement in Europe and Australia,
Toyota: www.toyota.com.au (Accessed on 19/08/2009)
CIA factbook: https://www.cia.gov/library/publications/the-world-factbook/geos/af.html (Accessed on 24/08/2009)
Juma, Emmanuel, Radio Kiss fm, Nairobi 6th June, 2002. 10.30am.

Issues at AirAsia

Simultaneity

Once the plane of AirAsia takes off, the transportation service provided to the customers is consumed simultaneously. Since there is no food provided during the service, AirAsia has made use of this opportunity to sell food and beverages. Through the selling process, it creates interaction with customers and it allows them to percept the quality of the service.

No free baggage allowance

There is no free baggage allowance on AirAsia X. Unlike other airlines who decide to increase airfares that are imposed on all passengers, AirAsia X believes that by charging for checked-in baggage, it is more reasonable and it will helps to keep air fares low. AirAsia X will incur more fuel costs with every kilogram of weight added to the aircraft. Thus, guests who take on less weight will be able to save more.

(http://www.airasia.com/site/en/faqSearch.jsp )

Fully ticketless travel

AirAsia is a ticketless airline, therefore, instead of tickets; they will provide you with an itinerary which contains your booking number as well as your payment and travel details via email. This is also a means of cutting cost by not printing any tickets.

Unassigned seats

The seats on AirAsia are based on free seating style. There will not be any seats assigned to you unless you pay an extra fee for it. Therefore, we would see long queue at the waiting area of AirAsia as many of the passengers would want to grab the best seats for the flight. By implementing free seating plan, it helps to encourage passengers to be punctual so that the plane could take of early.

Safety trip

AirAsia pilots practice standard applications, technical and behavioural tests, ground school training, safety and emergency procedural training, full flight simulator. Travel with AirAsia pilots who have both mind and heart. (http://www.airasia.com/site/en/faqSearch.jsp THIS PART IS COPY PASTE, HAVEN EDIT)

Self Check-in Service

Self Check-in is a service that allows guests to check-in from our airport kiosks, via mobile or online on our website without needing to be at the check-in counter at the airport. With this facility, it helps the customers to save their time and also need not have to queue up early for the boarding pass. This facility if convenient and it also helps to increase demand for the AirAsia seats for people who prefer fast and efficient check-in service without long queue.

(THIS PART IS COPY PASTE, HAVEN EDIT)

Explicit Services
Attractive and sexy air-stewardesses

The stewardesses of AirAsia are famous for their attractiveness. With red shirt and skirt on them, it really enhances their beauty and this makes the trip really pleasant for the customers. They are friendly and would always greet their customer with a smile. AirAsia even advertise the faces of their air stewardess on their plane. Their main duty on flight is to perform the safety precautions procedures to the passengers and also walk around the cabin to assist the passengers and also to see if they need to purchase any food. However, there were a minority who complaint that the air stewardesses are unfriendly and do not greet the customers when they see them. Thus, AirAsia still need to work on their consistency of their air stewardesses.




http://www.airasia.com/site/sg/en/pressRelease.jsp?id=14f35316-c0a8c85d-eb784700-58cd40f1&type=read
Quality of the customer service

There were numerous of feedbacks complaining that the automated system of the helpline was giving them a run around without providing a solution. Many of the customers complained that it is just impossible to get through the helpline and talk to a staff to assist them. And even if they got through; the staffs were unhelpful and were rude to them. For those who lose their baggage during their flight, AirAsia has not been very efficient in assisting the customers. Their reply was slow and the claim is even slower.

Consistency

According to research, AirAsia have always trying their best to maintain their on time departure record by offering unassigned seats and providing self check-in service to customer to encourage them to be punctual. Despite the effort to maintain punctual departure record, there are still a number of complaints regarding the delay and cacellation of flight. In event when flight has been cancelled, passengers were informed last minute and they complained that the staffs was not very helpful and willing in assisting them in the booking of new tickets. Thus, there is still room for improvement regarding AirAsia’s customer service and their on time departure record.

Availability

Website is available with information that the customers wish to find out. (E.g. Prices, promotions and flight info). It also allows customers to book and purchase tickets online conveniently. Call center and sales office is also available in every country where AirAsia is located in.

Strategies to Avoid Car Congestion

BUSINESS CASE: AVOIDING CRIPPLING CAR COGESTION 1

Case 2, Business Case: Avoiding a Future of Crippling Car Congestion Page 109

Explain the concept of connected cars.
Why does Bill Ford see a need for connected cars?
What does Ford mean by “global gridlock”?
Brainstorm a few other ways in which an IT network could help to reduce global gridlock. Do not limit yourself to current mobile network capabilities.
If no action is taken far in advance of the forecasted car congestion, what do you foresee will happen?

What is the “Connected Cars” concept? According to (Turban, Volonino, Wood, & Sipior, 2013) pg 109/1). This connected car concept, are vehicles linked to various mobile networks and or intelligent systems and capable of M2M communication. This concept was outlined by Bill Ford chairman of Ford Motors at the 2012, Mobile World Congress (Turban, Volonino, Wood, & Sipior, 2013) pg 109/1).

The mobile infrastructure allows for incorporation of technologies, applications, support, security processes, as well as devices for management and distribution of wireless communications. Wi-Fi technology permits devices to connect and share a network or Internet connection without connecting to a commercial network. (Turban, Volonino, Wood, & Sipior, 2013) pg 94/3).

Theconnected caris a vehicle with internet connectivity which can be linked or connected to its navigation and information systems in addition to its passenger’s personal communication devices such as smartphones, computers, tablet or any other internet connected personal device. Also to include data connectionswithin the vehicle, such as GM’sglobal communication system “OnStar” (Howard, B. 2013).

Permanent connections which allows the vehicle to communicate with your smartphone that would assist you in locating your car. Or the status of a charged battery pack by an app command or text message (Howard, B. 2013).

Wide area networks (WANs), WiMAXs, and local area networks (LANs) and wireless wide area networks (WWANs) for mobile computing constitutes the various mobile network infrastructures. LANs and WiMAX are the components of the wireless infrastructures (Turban, Volonino, Wood, & Sipior, 2013) pg 94/4).

So simply speaking a connected car can be any vehicle that has Mobile to Mobile connectivity, internet access or connected to a remote location that offers a service for the vehicle or its occupants over Wi-Fi connectivity is a connected car.

Bill Ford see’s the need for connected cars because he see the vehicles in the world climbing at an ever-accelerating rate, and this massive surplus of vehicles can be averted with vehicles that are capable of communicating to each other as well as the communication system or infrastructure. Bill Ford Jr., of Ford Motor Company, “cautioned of the danger of amplified automobile possession and no conforming increase in automotive connectivity”. Partnerships will be needed to be established between automotive as well as telecommunications industries and the need will be greater than ever as we prepare for and manage the future (Barry, K. 2012).

Within impending days, linked vehicles would communicate with one another through centralized traffic-observation platforms which would communicate notices about congestion, construction and accidents to in-car monitoring systems.

Ford said vehicles should be seen “as pieces of a much bigger, richer network.” Precisely, cars of the future could rely on 802.11p WLAN, a network infrastructure reserved for vehicle 2 vehicle network infrastructures. Connected automobiles can interconnect with one another as well as command and traffic control stations. These stations could warn could about traffic jams, construction and accidents by relying data to in-car navigation systems (Barry, K. 2012).

“Mobile data traffic is expected to increase 18-fold in size and speed through 2016, according to Cisco Visual Networking Index (VN1) Mobile Data Traffic Forecast, 2011-2016”, according to (Turban, Volonino, Wood, & Sipior, 2013).

Ford’s vision of “global gridlock” can be explained as follows: “a never-ending traffic jam that wastes time, energy and resources which also impedes the movement of commerce and healthcare,” Ford said that, “Sixty percent of the world’s population will live in urban areas by 2030, and there will be 2 billion automobiles on the highways. This progression is anticipated to come in China, the world’s largest automotive market” (Barry, K. 2012).

The National Highway Traffic Safety Administration pronounces,” connecting our cars could address as many as 4.3 million crashes, or about 80 percent of accidents that don’t involve intoxicated drivers. Sixty percent of the world’s population will live in urban areas by 2030, and there will be as many as 2billioncars on the road.” (Barry, K. 2012).

How can future gridlock be reduce or controlled? , well here’s an example of future concepts of reducing global gridlock.

Evacuated Tube Transport Technology – Envision traveling from Manhattan to Beijing in one-hundred twenty minutes, that’s only 2 hours. A pair of pioneering minds have confidence in reducing travel time significantly, using high-speed capsules racing through tubes – considerably like driving through a drive through bank.

Colorado inventor, Daryl Oster references this idea the “Evacuated Tube Transport Technology”, “it can propel a person or object 400 miles from Los Angeles to San Francisco in 30 minutes. This technology would necessitate a system for transporting a capsule through a vacuum tube with the air sucked out as if being in outer space, eradicating friction” (Petersen, B. 2013).

Supercavitation -The occurrence identified as supercavitation is most familiar within the military realm. Cavitation – an air or gas pocket developing around an object in motion underwater can be beneficial as this air or gas pockets fall away from a vehicle. The drag or resistance on a ship or underwater vehicle becomes greatly reduced. A defense tech company, “Juliet Marine Systems” developed a supercavitating watercraft called the“Ghost marine platform”incorporating stealthiness and attack helicopter technologies for tracking airborne and subsurface objects. Gliding efficiently through the water still ends up being like moving through the air. (Danigelis, A. 2013).

My Thoughts on Future Transportation

I would consider using manual powered equipment as a means of travel providing exclusive attention would be given to this device. Such as bicycle that was designed for a comfortable long distance ride with exclusive roadways designed just for my device. How about a multiple person hover craft, where three or four person would mount a disc like object that hover only a few feet above ground. With the occupants securely strapped in and again allowed to operate exclusively within an air-space just for this mode of travel.

What if no action is taken far in advance of the forecasted car congestion, what do you foresee will happen? I as well agree with Bill Ford, I see massive gridlock along with major congestion throughout the United States as well abroad. A never-ending traffic jam that wastes time, energy and resources and even compromises the flow of commerce and healthcare. Traffic on Interstates and Express routes will come to a mere crawl, vehicles will exhaust there fuel supply while stuck in traffic road blocks.

Causalities will increase as a results of medical transportation and supply vehicles caught up in gridlock as well, making it nearly impossible for medical supplies or patients transport to reach there intended destinations. Food supply vehicles will have there cargo spoiled as a results of being caught up in traffic gridlock.

I also envision a special highway express being created just for medical, food, fuel and any lifesaving product or supply. I also see this special highway being patrol by law enforcement and violators being severely punishment for traveling these special routes or interfering with the traffic on them. Unless the growing number of vehicles are not seriously addressed, to include major funding, rigorous IT research and advancements commuting and traffic as we know it will be a process of the past.

References:

Barry, K. (2012). Ford: Connected Cars Can Save Us From Gridlock.Ford: Connected Cars Can Save Us From Gridlock. Retrieved from http://www.wired.com/2012/02/ bill-ford-says-connected-cars-can-save-us-from-gridlock/

Danigelis, A. (2013). 10 Wild Ways To Travel In The Future.FUTURE OF TRANSPORTATION. Retrieved from http://news.discovery.com/autos/ future-of-transportation/10-wild-ways-travel-future-130812.htm

Howard, B. (2013). Connected cars: When is the breakthrough coming?Extreme Tech. Retrieved from http://www.extremetech.com/extreme/ 147568-connected-cars-when-is-the-breakthrough-coming

Petersen, B. (2013). Hyperloop, Vacuum Tubes Shaping Up As Travel of The Future? CBS New York. Retrieved from http://newyork.cbslocal.com/2013/08/12/ hyperloop-vacuum-tubes-travel-of-the-future/

Turban, E., Volonino, L., Wood, G. R., & Sipior, J. C. (2013).Information technology for management: Advancing sustainable, profitable business growth, 9th edition(9th Ed.). Hoboken, N.J.: Wiley.

Ship Planning and Hazardous Cargo

ABSTRACT

This project aims to provide an insight of the container shipping industry, in particular the “mega-vessel”. “Mega-vessel” here is referred to as large carrying container vessel which is commonly referred also to as a VLCC (Very Large Container Carrier) or ULCC (Ultra Large Container Carrier).

By doing research on the factors or/and constraints that limit the size of container vessels will give a better understanding of how the container industry has been evolving till present. We will look into seven areas which can affect the decision of constructing large container vessels. Factors or/and constraints that limit the size of container vessels are important points to look into when deciding whether or not to proceed with a decision of building larger vessels for the purpose of optimizing vessel space and achieving economy of scale.

INTRODUCTION

Container shipping industry has been expanding in terms of vessel size since it first came to existence in the 1950s and is expected to continue to grow gradually. In the 1960s, the so-called largest container vessel had a container capacity of 1,000 TEU then increased to 2,000 TEU for the following 10 years and so on. From then on, it has reached to the present biggest container vessel, Emma Maersk with capacity of 11,000 TEU. Now an entire industry has come into sight and therefore container terminals have become a crucial link to the chain of intermodalism.

Malaccamax is referred to vessel of 21m draft permissible to pass through Malacca Strait – a major shipping route between Europe and Asia. Adding the 10% underkeel clearance, the minimum channel depth of at least 23.1m is required in port and alongside the berth. She would have a capacity of 18,000 TEU, a length of 470m and a beam of 60m. Even so, with Suez Canal planning to increase the cross-section breadth and depth over the coming years, Malaccamax will be able pass the Suez Canal in future as its current narrowest width is at 60m.

With the trend towards building larger container vessels make ports even more incapable to accommodate them. Terminal advancement and dredging are some of the options for existing harbours to decide and some ports already have plans to deepen or widen its channel or berth depth.

To some, this may not be feasible to construct larger vessel as not only it is a challenge to design it in a way it is safe to navigate but also gives more room for casualties like grounding and navigational error.

FACTORS AND CONSTRAINTS THAT LIMIT THE SIZE OF CONTAINER VESSELS

A container terminal is a facility that handles ocean-going vessels along the coastline to manage movement of cargo (container) in and out of a country. A typical container terminal consists of berths, yards, quay cranes, storage area, equipments to handle containers, gatehouse that controls the flow of containers in and out of the yard and administration building.

In this section, we will look into the factors and constraints that limit the size of container vessel.

Port Infrastructure – Terminal

Water depth

The water depth of a berth has to be deep enough to accommodate Malaccamax which is said to have a draft of 21m. Ports with shallow draft will face a problem when Malaccamax calls in the port. They may have to deepen its draft through dredging or expanding the land used for storing of containers as part of the port development.

Quay length

The quay length is defined by the expected size of vessel to call at the terminal. Since this research is about Malaccamax, she would have a length of 470m, thus the berth needs to have a length capacity sufficient to take in Malaccamax for loading and discharging of containers.

Beam width

Beam width is to be taken into consideration as part of the port development to accommodate future vessels. The entrance channel should be wide enough for her to pass through.

Quay cranes are to be replaced with highly durable and that the outreach of the cranes can be extended and reach the very last row of the ship. Lifting capacity is also an important point for handling of hatch cover pontoons.

Storage space

To expand the landside container storage yard should be done if future large vessel like Malaccamax is to be constructed. Especially now with the no. of containers handled will be increased, most likely the port would need an extension of storage space as well as CFS (container freight station) for stuffing and stripping of containers.

Another constraint that the yard can have is the dwell time – the time cargo (container) remains in a terminal’s in-transit storage area while awaiting shipment by clearance transportation. The longer the dwell time, the lesser containers can be handled at any one time. By expanding the storage area, will reduce the time taken to handle containers which are waiting to be transferred out.

Ship’s design and cargo handling
Ship structure

The ship’s structure has to be able to carry more containers in cargo holds as well as on deck. It should also allow a better field of vision from the bridge to navigate the ship. The bow has to be strong enough to withstand the bow impact during the journey. It should be built with concrete frames, in a way to reduce torsional stresses and internal and external forces.

Engine

In today’s ship, it is equipped with one propeller, with the largest diesel engine manufactured (12 cylinders), maximum boring (980 or 960 mm), the power available is approximately 93.000 BHP (68500 kw), which gives a maximum speed of approximately 24-25 knots, which is required by industry. Now with the expansion of container ship size, one propeller is not enough to withstand the large vessel. The diesel engine should also be increased to maybe about 14-16 cylinders so that the maximum speed of the vessel can remain the same or even increase to higher knots.

All designs beyond the 9,500–10,000 TEU limit require alternative propulsion, either twin screw or some kind of combination with pods or contra-rotating propellers. Using double propulsion can be another option for larger vessel like what the small draft tankers used. Capital costs, fuel costs and daily operating costs all will go up with a twin screw ship, however the advantage of using the double propulsion is that if one of the engines breaks down, the ship can still be controlled by another engine. This increases the investment and hence offsets the economy of scale incentive for bigger size. If it happens, there will most probably have to be a jump in size to compensate for the increased capital cost.

To meet the SOLAS requirements for bridge visibility on such a large ship, the design envisages the separation of deckhouse and engine room. The innovative arrangement of the deckhouse in the forward part of the ship permits an increase in container capacity and a reduction in ballast water.

Container lashing

Lashings are essential and every container vessel will carry lashing equipments like lashing bar, turnbuckles and twistlocks used to secure containers onboard, especially in the present situation where containers are stacked as high as nine high.

Even so with the securing of containers, sometimes accident happens and containers collapsed like dominos. To reduce the risk of further accidents, some ways can be adopted like considering temporary reduction in container stack heights, revised weather routeing and replacement of lashing equipment.

Sometimes, lashing bars can also break. Probably the reason behind it is that heavy container is stacked onto lighter ones. This is where the job of a ship planner comes into picture. The ship planner has to plan loading of containers in a way it is safe from the loading point till it reach the discharging point.

With Malaccamax coming along, lashing of containers becomes more vital and needs to be carried out in a safe manner. It has to be regularly checked and assessed and if needed, to tighten the lashing bars.

Crew

Crew plays an important role in ensuring that the ship is properly manned. Without crew, ships cannot sail. With regards to Malaccamax, qualification and competency of a crew is a challenge. Of course with this, they would require the best crew onboard. Simulators also need to be further advanced for bigger ships.

Most vessels employ 13 crews on board, however in the case of Malaccamax, it has to be increased to do the daily routine. 13 crews onboard can’t possibly handle such a large vessel.

Cargo (reefer)

Usual accidents that we also hear from container vessels are loss of containers, collision, fire and some cargo claims especially with regards to reefer containers.

In this case, reefer containers pose a kind of problem because it has to have power points for the reefers to operate. Power points are to be situated at one side so reefers will be placed together at a single point. Crew has to also check the temperature needed depending on its content. That is one of the reasons why reefers cannot be loaded in cargo hold.

Technical constraint

Cargo handling equipment (quay crane, mobile crane, gantry cranes, etc)

The life span of a crane is 40 years but the useful life will not be more that 25 or 30 years. Improved and automated handling equipment is required for the ships’ turnaround time to be reduced. Port can also improve on the yard productivity to overcome the situation.

Road and rail intermodal connection

It is important to improve the situation in port. Currently, we are facing the common constraint in yard which is congestion. By expediting on the technology, we can utilise the container space even more by higher stacking of containers.

Gatehouse can also be replaced with automated gantry that allows trucks to move in and out of the yard with less difficulty. The terminal operator can install some kind of a system that can see through the trucks for security purpose. That will reduce the employment of staff for the job and also reduce the waiting time for trucks to get in and out of the yard.

Some countries have rail system where it will transport containers from one place to another place using railways. Now with more containers coming in the port, the system has to be amended for an example to use double stack or triple stack high on rail. With this kind of system, it can carry at least twice the normal no. of containers being transported by rail.

Turnaround time

It is obvious that the ship’s turnaround time would be slower for large vessels like Malaccamax. Therefore it is the ports’ trading speed that will attract ship owners to acquire any services needed. Ports should stay competitive especially when handling large vessels like Malaccamax since not many ports have the capability to deal with it.

Container handling equipments will have an impact on the turnaround time. To reduce it, maintenance of the equipments needs to be in a regular basis so that the efficiency is maintained at a high level. To use additional cranes or faster hoist speeds and trolleys can minimise the constraint in port.

IT

The crippling of the port need not be through the destruction of physical assets—it can also occur through the disruption of the information systems controlling port flow. Only a sophisticated information network management system can allow the port to manage the volumes and complexity of handling different cargoes all at once.

As the hub ports grow bigger, even more information needs to be processed and disseminated. This makes the hub ports—and the entire maritime shipping structure—even more vulnerable to disruption of the information network itself.

Operational cost

When we talk about Malaccamax, being the future largest container vessel to be constructed, surely all sorts of costs will increase especially the bunker cost. With twin engine usage and heavy deadweight will consume more bunkers. With the maintenance of ships’ engine, other equipments and all as part of the operational cost, it would definitely increase as compared to smaller vessel of say 8000 TEU.

Speed of a ship is of critical importance as ship will enjoy economy of scale when she is at sea. When in port, capital cost will start building up.

CONCLUSION

The growth of vessel size and the development of hub ports are the result of the search for efficiencies and profit by private businesses competing in a fierce shipping market.

The growth in demand for container ships is required to provide employment for the rapidly expanding container ship fleet. When talking about business, of course risks are involved and when times are bad, the container ship industry will be greatly affected especially with the economic downturn crisis at present.

Although the container ship is a type of reliable ship, the rapid development of new bigger designs and the increasing value of the cargo call for a more proactive approach in order to deal effectively with the hazards currently associated with container ships. The industry as a whole must focus on these issues and find suitable solutions.

REFERENCES

A.Jordan, Micheal, Future: Proof your crane, viewed on 15th June 2009

http://www.jwdliftech.com/LiftechPublications/mj_futureproofcrane.pdf

All Business, Containerships: Making it to the Malaccamax?, viewed on 23rd June 2009

http://www.allbusiness.com/transportation-equipment-manufacturing/ship-boat-building/1189984-1.html

Association Francaise Des Capitaines De Navires, The safety of the container ships; An increasing concern, viewed on 15th June 2009

http://www.afcan.org/dossiers_techniques/porte_conteneur_gb.html

Blankey, Nick, Containerships: Making it to the Malaccamax?, viewed on 23rd June 2009

http://www.allbusiness.com/transportation-equipment-manufacturing/ship-boat-building/1189984-1.html

C.Ircha, Micheal, Serving tomorrow’s mega size container vessels, viewed on 15th June 2009

http://www.unb.ca/transpo/documents/Servingtomorrowsmegasizecontainerships..01.pdf

Compton, Mike, Seaways magazine: Container safety, Dec 2008 p19

DNV, Container ship safety: An area for increasing concern?, viewed on 15th June 2009

http://www.dnv.com/industry/maritime/publicationsanddownloads/publications/dnvcontainershipupdate/2004/no32004/ContainershipsafetyAnareaforincreasingconcern.asp

Global Security.org, Container Ship Types, viewed on 15th June 2009

http://www.globalsecurity.org/military/systems/ship/container-types.htm

Looklex Encyclopedia, Suez Canal, viewed on 24th June 2009

http://looklex.com/e.o/suez_can.htm

Maersk, Emma Maersk, viewed on 24th June 2009

http://about.maersk.com/en/Fleet/Pages/Fleet.aspx

Tozer, David and Penfold, Andrew; Ultra Large Container Ships; designing to the limit of current and projected terminal infrastructure capabilities; viewed on 23th June 2009

http://www.antiport.de/doku/gutachten/ulcs.pdf

The Scottish Government, Container Transhipment and Demand for Container Terminal Capacity in Scotland, viewed on 15th June 2009

http://www.scotland.gov.uk/Publications/2004/09/19885/42551

Y.Coulter, Daniel, Globalization of Maritime Commerce: The Rise of Hub Ports, viewed on 15th June 2009

http://www.ndu.edu/inss/books/Books_2002/Globalization_and_Maritime_Power_Dec_02/08_ch07.htm

Financing Shipping companies

There are several advantages for a shipping company to outsource a particular service or department. The main advantages with outsourcing are better cost control, lower risk and the outside supplier’s expertise.

Better cost control is achieved because outsourcing leads to less fixed costs and more variable costs. This means that the company in the short term is more flexible, and able to adjust costs faster and in some cases with less hassle. Outsourcing a service or department also lowers the need for an initial investment by removing the capital injection necessary for establishing a department/service. Less fixed costs and less long term fixed assets means lower risk for the company.

In economical theory there also is an general opinion that outsourcing in many cases leads to cost reductions, due to a small internal department within the company not having the same degree of expertise as a bigger outside supplier and therefore not being able to deliver the services at a competitive cost. This lack of expertise compared to the outside supplier that specialises in the segment might also lead to a lower quality of service if the work is kept in house.

With regards to expertise there also is a big advantage in that the company can keep focus on their core business where they have the necessary know-how and stay clear of outside disturbance.

There are however also disadvantages with outsourcing. The main problem is loss of control due to the company not having the same supervision over the work being done. Another problem is that the outside supplier might not be able to adjust the service as well as an inside department after the company’s needs at any given time.

The degree of the advantages/disadvantages with outsourcing varies greatly with the complexity of the work that has to be done, the potential savings and the importance of in-house supervision. A certain degree of outsourcing of services will always exist i.e. transportation for a company’s employees, postal services, big IT reforms etc.

Solstad has decided to keep outsourcing at a minimum and integrated shipping operations are a part of the company’s philosophy[1]. The company manages the total operation of the vessels[2], and have a large onshore support mechanism which includes freight, crewing, accounting, chartering, technical, and other administrative functions. The company is nevertheless open to outsourcing services and will evaluate whether it is possible to achieve more cost effective operations and an optimal return on capital employed in cooperation with new suppliers with a view to long-term strategic co-operations[3]. Such collaboration is also evaluated with regard to risk and capital injection.

How has your company financed its vessels? Explain advantages and disadvantages by such financing.

It isn’t possible to find public information on how most of the specific vessels have been financed. However according to a news article in Skipsrevyen[4] about the acquisition of the M/S Normand Seven, the long term financing for that vessel is provided by Eksportfinans in cooperation with Nordea Bank, Fokus Bank and Danmarks Skibskredit AS.

The company’s balance sheet doesn’t show in detail to whom the long term liabilities is owed, so to answer the question we will have to assume that the financing of the M/S Normand Seven is representative of how Solstad normally finances its fleet.

As of the end of 2008 the company have long term fixed assets in vessels and new buildings of 7.289.858.000 NOK[5]. This equals just over 70% of the company’s total assets of 10.213.357.000. The assets are financed with a total equity of 3.697.624.000 and total liabilities of 6.515.734.000. Out of the total liabilities long term loans to credit institutions/leasing obligations amounts to 4.831.208.000.

In economic theory an equity ratio of 30 % is generally considered healthy, and the company also states in the annual report that the aim is to be financed by the owners (equity) with a ratio higher than 30 %. The total equity in percentage of total assets in 2008 was 36%, well above the company’s goal. The company’s equities are important when you need to raise capital from outside sources, as it may provide security for the lenders.

Assuming that the financing of M/S Normand Seven is representative for the entire fleet the long term liabilities is provided by commercial banks like Nordea bank, Fokus bank, and Danmarks Skibskredit as well as government backed ship credit schemes like Eksportfinans. According to the annual report some of the fleet is also financed by leasing agreements.

The advantages in getting mortgage-backed loans from commercial banks are that capital can be raised quickly and flexibly, while the owner is still left with full ownership of the business.

The disadvantages by such financing is that commercial banks are uncomfortable with loans that are longer than 5-6 years[6] and often prefers to receive a balloon payment that might be difficult to handle for the shipping company. A leasing company is often more attractive if the borrower want longer finance than a commercial bank is willing or able to take onto their balance sheets. Eksportfinans also offers longer term finance than is usual for commercial banks, and offer repayment periods for up to 20 years[7].

Commercial banks normally take little risk and require a lot of security to protect their investment. According to the annual report[8] some vessels are placed as security for the mortgages. In addition, accounts receivables and bank deposits (2007) are tied. Solstad’s loan agreements are also subject to the owner’s working capital being positive at all times and that the market value of the vessels amounts to at least 110-125% of the outstanding loans. The company states that they satisfy all conditions of the loan agreements at 31.12.08[9].

Name three of the most important conventions your company must adhere to. Give reasons why those are among the most important ones.

Solstad have ships registered in the Norwegian International Ship Register (NIS), Isle of Man Ship Registry (IOM), and the Norwegian Ship Register (NOR). Some of the criteria for NIS/IOM/NOR registered vessels are that they adhere to international conventions such as “Safety of Life at Sea (SOLAS 74)”, “Prevention of Pollution from Ships (MARPOL 73/78)” and “Standards of Training, Certification and Watch keeping (STCW 95)” as well as other international regulations ratified by the flag states.

“Safety of Life at Sea (SOLAS 74)” is the most important international treaty protecting the safety of merchant ships in the world. The first version of the treaty was passed as early as 1914 in response to the sinking of the Titanic.[10] It prescribed numbers of lifeboats and other emergency equipment along with safety procedures, including continuous radio watches.

The intention had been to keep the convention up to date by periodic amendments, but a completely new convention was adopted in 1974. The convention regulates among other things use of the global maritime distress safety system, set construction criteria (subdivision and stability, machinery and electrical installations), fire protection/detection/extinction, obligatory life-saving appliances and arrangements, radio communications, safety of navigation etc. and is the centrepiece of maritime safety.

Prevention of Pollution from Ships (MARPOL 73/78) is the main international convention covering prevention of pollution of the marine environment by ships from operational or accidental causes[11]. It was designed to minimize pollution of the seas, including dumping, oil and exhaust pollution. Its stated objective is to preserve the marine environment through the complete elimination of pollution by oil and other harmful substances and the minimization of accidental discharge of such substances.

MARPOL contains 6 annexes, concerned with preventing different forms of marine pollution and covers pollution by oil, chemicals, harmful substances in packaged form, sewage, garbage and air pollution.

The International Convention on Standards of Training, Certification and Watch keeping (STCW 95) sets qualification standards for masters, officers and watch personnel on seagoing merchant ships[12]. The aim of the convention was to introduce internationally acceptable minimum standards relating to training, certification and watchkeeping for officers and crew members.

Today there are amendments concerning quality standards systems, oversight of training, certification procedures and rest period requirements. The amendments require that seafarers are provided with familiarization training and basic safety training which includes basic fire fighting, elementary first aid, personal survival techniques, and personal safety and social responsibility. This training is very important in ensuring that seafarers are aware of the hazards of working on a vessel and can respond appropriately in an emergency.

Literature and references:
Annual report (2008). Annual report 2008 Solstad Offshore ASA. Skudeneshavn. * Financial report (2009). 3rd quarter 2009 Solstad Offshore ASA. Skudeneshavn. · International Convention for the Prevention of Pollution from Ships (MARPOL) (1973). http://www.imo.org/Conventions/contents.asp?doc_id=678&topic_id=258
International Convention for the Safety of Life at Sea (SOLAS) (1974). http://www.imo.org/Conventions/contents.asp?topic_id=257&doc_id=647
International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) (1978). http://www.imo.org/Conventions/contents.asp?doc_id=651&topic_id=257 * Misje, M. (1989). Solstad rederi A/S 1964 – 1989. Skudeneshavn: Solstad Rederi. * Misje, M. (2004). Solstad rederi AS: 40 ar 1964 – 2004. Haugesund: Nils Sund boktrykkeri.
Presentation 3rd quarter (2009). Presentation 3rd quarter 2009 Solstad Offshore ASA. Skudeneshavn.
Solstad Offshore ASA – website. http://www.solstad.no * Stopford, M. (2009). Maritime economics – 3rd edition. New York: Routledge. * Zachariassen, J. E. (2008, 21. April). M/S «NORMAND SEVEN». Skipsrevyen.
Eksportfinans – website. http://www.eksportfinans.no/Bransjer/Skip.aspx
[1] Annual report, page 2 [2] Annual report, page 13 [3] Annual report, page 13 [4] Zachariassen, 2008 [5] Annual report, page 26 [6] Stopford, 2009, page 284 [7] Eksportfinans website [8] Annual report, page 49 [9] Annual report, page 49 [10] International Convention for the Safety of Life at Sea (SOLAS), 1974 [11] International Convention for the Prevention of Pollution from Ships, 1973 [12] International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978

Environmental Impact of Ship Breaking Industry

Introduction:

We are going to look into Ship breaking industry around the world and its impact on the environment, health and safety, social values and human rights issues. Ship breaking is the course of dismantling an archaic vessel’s structure for scrapping or recycle, mean to be conducted at a pier or dry dock to dismantling ship, it includes various activities, from removing all gears, parts and equipment to cutting down the ship’s substructure. Ship breaking is a difficult course of action due to the structural complication of ships. There are thousands of people involved in this industry. So many issues come up during breaking ships which remains beyond our knowledge.

We are trying to demonstrate these serious issues and overcome these problems. Increasing demand of raw materials for re-rolling mills and other purposes and negative impacts on coastal environments, ship breaking activities present both challenges and opportunities for coastal zone management in a holistic manner. These activities are example of both the potentialities and the dangers of an increasingly globalised economy. It has achieved a good fame for being profitable but it cost huge environmental damage. A variety of disposable materials and refuse are being discharged from scrapped ships are often mixed with the beach soil and sea water which in turn has a negative impact on our coastal environment and biodiversity. However, accidents are normal phenomena in the ship breaking yards. Over the years more than 1000 workers have lost their lives and were seriously injured. Due to unconsciousness and lack of government patronization, the activities are facing several internal and external problems. Considering all these facts, a distinct and well-balanced policy is necessary for sustainable ship breaking activities.

Aims & Objectives:

There are some aims and objectives have been set to conducting this research:

Aims
• Solve the serious issues
• Set proper guidelines
• Make awareness of the workers
• Keep the child workers away
• Awareness of the government
• Finding pros/cons

Objectives
• Finding the problems
• Co-operate with the local authority
• Training for the workers
• Education for all
• Collecting data and analyze them
• Implement the outcomes of the research

Environmental pollution:

According to the report of Jim Puckett (International Conference on the Safe and Environmentally Sound Recycling of Ships, 2009), the “Beaching Method” whereby ships are run grounded on ocean beaches for cutting and breaking apart in the intertidal zone can never be achieved in a manner which is environmentally noise or shielding of human health. Careful analyses of the intrinsic characteristics of beaching operations are conclusive that no amount of prescriptive improvements or protections can remedy the four fatal characteristics of intertidal beaching operations:

* there is the impossibility of containing pollutants on a tidal beach where hulls of ships are often breached accidentally or by cutting, or toxic paints erode or are abraded sending persistent organic pollutants, heavy metals and oils onto the beach and into the seawater;

* due to a shifting and soft wet tidal sand surface, there is the impossibility of rapidly bringing emergency response equipment, including fire-fighting equipment and vehicles, ambulances and cranes alongside the ship, to assist or remove persons hurt inside the hull;

* the impossibility of allowing cranes to work alongside to lift heavy cut sections of a ship and thereby preventing heavy cut sections from being subject to gravity, shifting or falling directly into workers or into the marine environment; and

* There is the absolute incompatibility of conducting hazardous waste management operations (which is what they are as long as ships contain hazardous wastes) in the ecologically delicate and vital coastal zone.
Puckett revealed that these fatal flaws of the beaching method inevitably will result in causing avoidable death and pollution and thus make a mockery of the application of Regulation 19 of this Convention. No amount of band-aid guidelines and criteria can cure the malignancy inherent in beaching operations. To ask Parties to prevent adverse effects to human health and the environment from massive toxic ships on an intertidal beach already makes the fulfilment of this objective impossible. However the worst outcome is that by not drawing a clear line at the outset, this fatally flawed method will be legitimized, millions of dollars will be thrown into trying to mitigate the inherently inappropriate and dangerous working platform and the IMO will have succeeded in perpetuating death and pollution for many years to come.

Hazardous activities:

Ship breaking activities are being condemned as the whole process entails a series of risky tasks and as a depot of hazardous substances, which pose threats to the ambient environment and working people. Depending on their size and function, scrapped ships have an unloaded weight of between 5,000 and 40,000 tonnes (an average of 13000+), 95% of which is steel, coated with between 10 and 100 tonnes of paint containing lead, cadmium, organ tins, arsenic, zinc and chromium. Ships also contain a wide range of other hazardous wastes, sealants containing PCBs; up to 7.5 tonnes of various types of asbestos; several thousand litres of oil (engine oil, bilge oil, hydraulic and lubricant oils and grease). Tankers additionally hold up to 1,000 cubic meters of residual oil. Most of these materials are defined as hazardous waste under the Basel Convention. In Asia old Ships containing these materials are being cut up by hand, on open beaches, under inhumane working conditions. Experts are unanimous in their opinion that ship breaking is a high-risk industry. Paul J. Bailey criticized in his ILO discussion papers (2000) that “By any standards, the demolition of ships is a dirty and dangerous occupation”. The ship breaking hazards generally fall into two categories: intoxication by dangerous substances and risk of accidents on the plots.

Violations of Human and labour rights:

Be short of professional health and safety standard, personal or limited of training protection equipment provided.

• Limited or no access to emergency services, compensation when a worker is injured or killed on the job, and treatment.
• Less than bare minimum wages.
• Child labour uses.
• Wide range of working hours without right to overtime, annual leaves or sick.
• Short of job security: there is no pay where no work.
• No right to form or join or any trade union.

In the most of the shipyards, workforces are being privileged of their human rights. They work under dangerous situation however they have no right of entry to job security, a take-home pay or safety kit.

OHS, accidents and diseases:

Over the last twenty years more than 400 workers have been killed and 6000 seriously injured according to the Bangladeshi media. These are the ones that have been reported. The explosion of the Iranian tanker TT Dena on 31st May 2000 alone is said to have caused 50 deaths. To this toll, the thousands of cases of irreversible diseases which have occurred and will continue to occur due to the toxic materials that are handled and inhaled without any precautions or protective gear need to be considered. On average, one worker dies in the yards a week and everyday a worker is injured (End of Life Ships: the Human Cost of Breaking Ships). It seems like nobody really cares: ship breaking workers are easily replaceable to the yard owners: if one is lost they know another 10 is waiting to replace him due to the lack of work. The Government collects the taxes and turns a blind eye. Workers are not aware of hazards to which they are exposed. The overwhelming majority of workers wear no protective gear and many of them work barefoot. There is hardly any testing system for the use of cranes, lifting machinery or a motorized pulley. The yards re-use ropes and chains recovered from the broken ships without testing and examining their strength. There is no marking system of loading capacity of the chains of cranes and other lifting machineries. Consequently, workers suffer from lung problems which cause temporary loss of working capacity. The hatches and pockets of vessel may contain explosive or inflammable gases. The cutters, if they understand from experience, drill small holes in order to release gases or fumes. This still however, often cause severe explosions. Gas cutters and their helpers, cut steel plates almost around the clock without eye protection. This leaves their eyes vulnerable to effects of welding. They do not wear a uniform and most don’t have access to gloves and boots. Those that are ‘unskilled’ carry truck able pieces of iron sheets on their shoulders and there are no weight limits to the sheets they carry. Usually, these workers carry weights far above the limit prescribed in the Factories Act and Factories Rules. The beaches are strewn with chemicals and toxic substances, small pieces of pointed and sharp iron splinters causing injuries. Workers enter into the areas without wearing or using any protective equipment. Occupational health and safety is clearly not a priority for the owners and as for the workers their desperate need to find employment to support their families means that their livelihoods take precedence over their lives.

Treatment and compensation:

When there is an injury some immediate treatment may be given but there is no long term treatment for those who have a long term or permanent injury. In terms of compensation, only a nominal amount of compensation given and often only when there is public pressure. When a worker becomes disabled by a major accident, he gets a maximum of 10 to 15 thousand taka (1 USD=71 taka) and forced back to his home district. In most cases a worker will only get transportation costs to go back to their home district. When a worker killed in an accident, the contractor, who is responsible for the workers, will only pay the costs of sending the body back to the victim’s family and arranging for their burial. In the case of local workers from the area, if they die on the job, their family receives more than 50,000 taka as compensation. This is mainly due to the fact that the yard owners and contractors cannot avoid the locals who yield some power and pressure them. Prior to 2006, the labour laws in Bangladesh had a lot of limitations. The Workers Compensation Act 1965, only 30,000 taka was proposed for a 100% disable worker and 21,000 taka for dead worker’s family. The recently passed Labour Law Act 2006 now stipulates that a 100% disabled worker will receive 100,000 taka and a deceased worker’s family will receive xxx taka.

Child labour:

In Bangladesh, most poor families are more or less dependent on the children’s income for survival. The Bangladesh Shishu Adhikar Forum (BASF) has identified 430 risky jobs. Within these 67 professions are classified as very much risky and 11 are classified as dangerous. Ship breaking is falls in the latter. YPSA’s baseline survey in 2003, 10.94% of the labour force is made up with children (age up to 18). Most of 5the children come from the northern regions of Bangladesh. It was noticed that ship breaking contractors prefer to recruit children as they are less expensive than their adult counterparts. The children work mainly as gas cutters assistants and move small iron pieces from one place to another. They either work in the yard from sunrise to sunset or do the night shift. On average they receive 50-60 BDT a day for their efforts. There are no educational or recreational facilities.

Conclusion:

Nobody seems to really care about the workers and their families. Neither the ship owners, nor the exporting countries, the ship breakers or the local governments. They are simply numbers that can be replaced. There is an urgent need to interconnect the reality on the ground, the dominating economic interests of the shipping industry and the discussions taking place at the international level, in order to change the working and environmental conditions on the yards.

References:

Akther, M. et al, YPSA (2005). Workers in Shipbreaking industry: a base line survey of Chittagong (Bangladesh), chapter 4, pp. 29-36.

Bailey, P. J. (2000). Is there a decent way to break up ships? Sectoral activities programme discussion paper, International Labour Organization (ILO). Retrieved at 03:00 (GMT) Aug 22, 2009, from http://www.ilo.org/public/english/dialogue/sector/papers/shpbreak/index.htm

Dr. Hossain, Md. M. M. & Islam, M. M. (2006). Ship Breaking Activities and its Impact on the Coastal Zone of Chittagong, Bangladesh: Towards Sustainable Management, Young Power in Social Action
(YPSA). pp 13-17

Vardar, E. et al, Greenpeace-FIDH (2005), End of life ships: the human cost of breaking ships, Human rights report,

Puckett, J. (2009). The NGO platform on Ship breaking on the Beaching Method, Presented at the International Conference on the Safe and Environmentally Sound Recycling of Ships.

Orient Overseas Container Line (OOCL)

ORIENT OVERSEAS CONTAINER LINE (OOCL)01.BRIEF DESCRIPTION OF OOCL.

Container shipping is most popular types of merchant shipping over the world. Due to size, use, and accessibility, it is famous and convenient for transporting from one place to another place to all customers from small trader to big trader. OOCL is the leading container main line operator in shipping industry having own information technology facilities.

OOCL is a wholly-owned subsidiary company of OOIL (Orient Overseas International Limited) group which listed on Hong Kong Stock exchange as a public limited company. OOCL is one of the world’s largest integrated international container transportation, logistics and terminal companies having global brand images in container shipping (OOCL, 2010a)

The founder of OOCL is CY Tung who dreamed to create Chinese merchant fleet in international shipping. In 1947, he succeeded when first ship with all Chinese crew reached in USA and Europe under the name of his company Orient Overseas Line (OOL). Due to the demand of container vessel and age of containerisation in shipping, OOL renamed to OOCL in 1962. Today, it has more than 230offices in 58 countries around the world and the present Chairman is CC Tung.

OOCL Mission Statementis “To be the best and most innovative international container transport and logistics service provider; providing a Vital Link to world trade and creating value for our customers, employees, shareholders and partners” ( OOCL,2010b). The core values of OOCL for people or employee of the company, customers and wants to maintain high standard of services through community responsibilities.

OCCL is a renewed container carrier who has own mother and feeder vessel, rail track, containers, trailers and terminals. In December 2008, OOCL awarded “Best of the Best” ocean career by World Trade Magazine of USA (Shister, 2008).All vessels of OOCL achieved the quality certificate of QUALSHIP 21 issued by US Coast Guard.

However, recent world recession covered OOCL also and it’s container traffic fell 17.2 per cent compared with the first half of 2008, while revenue fell 37.2 per cent to $2.05bn and operating loss for the half of $197m, against a $216m profit in the first half of 2008 ( Lau and Wright,2009).

United Nations Conference on Trade and development- UNCTAD positioned OOCL within the leading container transport operators of 20 MLO (Main Line Operators).

Year

Position

Number Of Vessels

TEU Capacity

(TEU-Twenty feet Equivalent)

2008

11

90

364384

2007

09

84

351542

2006

12

71

275057

2005

11

68

236018

2004

11

63

216527

Figure 1 (Table) Performance of OOCL in world container trade – 2004-2008 (UNCTAD,2010)

The position of the OOCL is world container industry is fluctuating highly year by year. There is no constant improving that means growth in performance indicator by UNCTAD. However, they are increasing the number of vessel and container capacity (TEU capacity) in every year. Within 5 years they increased the number of vessels approx 50% and capacity over 68%.

As a total logistics service provider, OOCL’s international freight consolidation and logistics service unit, OOCL Logistics, provides its customers with innovative freight management services and leading-edge IT solutions. OOCL China Domestic Ltd. offers extensive domestic distribution services and supply-chain management to customers in China, the growing market which OOCL has been serving for over 50 years ( OOIL,2010 )

OOCL is renowned for its pioneering approach to developing intermodal connections. All means of intermodal transport are carefully integrated with trunk ocean services to offer seamless connections across continents using feeder services, barges, trucks and block trains (OOCL, 2010c)

02.STRATEGIC MANAGEMENT

People have different views for understanding, developing and implementing strategy economically and timely to gain special advantages in business. Before taking any strategy, need to justify and assess the organisations present situation especially internal environment of the organisation. After that, external environment will help to set a preliminary plan for going forward. This is very important to assess the situations by marketing mix and political factors also. In a study (Johnson et all, 2005) of strategic exploration found that, there are three strategy lenses: design, experience and ideas which are useful to develop a strategy in a organisation.

Model of Strategic Management (Johnson et all, 2005)

The above model indicates that strategic management indicates the strategic position of a organisation depends on the environment and its capabilities to adapt also its expectations. The choice of strategy may be in business level or corporate-level; it may be internationally for the development of the organisation by following the strategic direction or methods. Furthermore, need to organise, enable the strategy into action to get competitive advantage. The research and development of the strategy based on the some environment analysis such as SWOT, PESTLE , value chain , Porter’s Five forces mode and etc. By applying these organisations can find the position where it placed and take effective measure to correct modify for developing the situation.

03.SWOT ANALYSIS FOR OOCL

In a study Stacey (2000) stated that “SWOT analysis is the list of an organisation’s strengths and weaknesses indicated by an analysis of its resources and capabilities, plus a list of the opportunities and threats that an analysis of its environment identities. Strategic logic obviously requires that the future pattern of actions to be taken should match strengths with opportunities, ward off threats, and seek to overcome weaknesses.”(P-5). In addition, Strengths (Koch, 2000) can serve as a foundation for building a competitive advantage, and weaknesses may hinder it. By understanding these four aspects of its situation, a firm can better leverage its strengths, correct its weaknesses, capitalize on golden opportunities, and deter potentially devastating threats

Container Shipping is the most complicated globalized industry which has to compete with internal competitors like other container operators also homogenous business like dry bulk or tanker operators. Moreover, it has a big competition with air transportation. Customer always wants to know the good and bad matters of the company before stuffing his cargo. By SWOT analysis of a company we can easily find out the negative and positives of an organisation. So, SWOT analysis is very important for developing company profile by correcting present weaknesses and aware the threats internally, externally and environmentally.

OCCL has huge competition with other operators nationally and internationally and need to manage small shipper or big customer, moreover, fluctuation of international trade create the environment to forecast its all sight. Furthermore, it is a customer focused organisation. SWOT analysis will help to attract the customer for better business also develops the organisation economically and socially.

04.SWOT ANALYSIS
A. STRENGTHS OF OOCL
OOCL is a subsidiary of a global group of company OOIL group, Hong Kong. They can take any organizational or financial help from the group even from the government.
Offering quality services in Asia, Europe, America and Australasia where container service is highly demanded as quick ocean transportation and easy access to shipper or consignee premises.
Quick and speedy service, transit time is less, easy connection, global service & network
Pioneer in IT (Shipping).Very strong in information technology. Vendor services are performing by specialized software “Operationsmart”, “Depotsmart” and “Schedulesmart”. Vendor can easily log on and contract with OOCL from anywhere by using this facilities. Any customer can know his cargo position by this link. All vessels are handling by using information technology.
Has own carriers (Mother and feeder vessels), rail track ( Owned in China and partnership in America & Europe)
Global brand image & identification to trader, importer and exporter.
Trained and skilled employees who’s are really professional & devoted in their jobs.
Market leader in refrigerated container trade and temperature -controlled environment over ocean, rail and load line.
Strong intermodal network in Asia, Europe and America.
“DGsmart” which cares the dangerous goods customer. OOCL provides training for all for handling these types of cargo
B. WEAKNESSES OF OOCL
High competition and market fluctuation. Insignificant market growth of the line. No constant business growth in the industry.
High freight & costs. Peak season surcharge on service routes.
Limited allocation of container in various routes and country
GSA trade in maximum country. No direct trade for maximizing profit and mass customization.
Imbalance of equipment. Huge lease container.
Africa service is not available.
C. OPPORTUNITIES OF OOCL
OOCL can increase the number of vessels and container as world demand is increasing day by day.
Introduction of Africa and South American services and intermodal connection there.
Increase market share in Asian region by direct business.
Introduction of feeder service in south Asia and investment in terminal business.
More investment in port and terminal business.
D. THREATS OF OOCL
World recession which may be incurred huge loss which will impact to the share market and shareholders view to divert from their position or sell the share.
Due to surcharge or extra payment, customer may divert to other operators.
Heavy competition with national and international carrier.
Globalization of the industry. May loose domestic’s cargo.
Limited Feeder Vessel allotment from hub port to spoke port in Asian market
05.BUSINESS STRATEGY

Business strategy is the key component of developing the organisation as reputed organisation of the world. In addition, it will help to establish the operational guidelines by which company can proceed step by step. This good plan may help to reach the target point for achieving the desired outputs. It will help to make plan, revision, control and implementation of the project. In a study Lasserre ( 2007) argued that a company business strategy is a set of fundamental choices which defines its long-term objectives, its value proposition to the market, how it intends to build and sustain a competitive business system and how it organises itself. He added that a business strategy will generally cover the followings for getting the maximum outcomes:-

Ambition. This will help to set a long-term objectives of the company by which it is possible to create a target especially increasing the size of the organization economically, nationally and internationally.
Positioning. It will add the value proposition to customer. Branding the product and service, customer segmentation, preference of customer choices will set a standard of the company and good position on the market.
Investment. Business strategy will help to create the environment of investment for going very near of the customer. Also create a system that is able to deliver value to customers competitively.
Organization. The profound beliefs of the organization will add value to the employee and long-term working facilities will develop a good structure of human resources management. From human resources to the production, everywhere will be a process and will maneuver the organization in a system.

The business strategy of an organisation may be different in different location or region. The company business strategy may be FDI (Foreign Direct Investment), M&A (Merger and acquisition), Diversification, CSR (Corporate Social Responsibility) or Global Strategy or any corporate strategies that will dominate or indicate how the company will bring competitive advantages to do business.

06.DIVERSIFICATION STRATEGY OF OOCL
a)Diversification

Diversification (Johnson et all, 2005) is a strategy that takes the organisation into both new markets and products or services and be undertaken for a variety of reasons, value creating than others. It may gain the economies of scope by organisations existing facilities also corporate managerial capabilities. Keeping the product is the main challenge of diversification. Instead of increasing growth, it sometimes is a burden for the organisation. The growth of the core business of the organisation may create the financial or distribution channel strength to expand the business in related or unrelated function. Sometimes managers or employee motivates the owners to engage in new business. In addition, the good brand value may attract to diversify the product or introduce new product by which company can give additional customer service. Furthermore, offer from government to do business in a new area or product for protecting the national interest towards a strong position of the company also financial stability in a country.

In a research of diversification , Reed and Luffman ( 1986) argued that basic strategic aims can only be decided after deliberate concentration on the company’s present limitation and future needs which helps to survive, growth , use of resources or adapting to customer then diversification is one alternative in several option available to the company. They also added that analysis of market; material supplies, technological development and production process are required before moving to the decision of diversification. Where the opportunity is available but risk to develop, organisation may not diversify from their core business. The assessment to expand the business in various ways can help to take a decision in what way they will look forward towards existing or new customer but offering the qualitative product or service depends on the customer’s desire and availability of channel by which they can promote the product or service. Otherwise, risk will be increased and core business may be hampered by the new one.

Grant (2008) argued that diversification strategy or decisions by the company involves for two issues: attraction of the industry and output by competitive advantages. The economics of scope can be tangibles or intangible resources of the company even organisational capabilities can also be transferred within the diversified company. OOCL had competitive advantages by its diversified products like information systems and terminal business. The group business expanded business in related and unrelated industry for getting the logistics support for its core business ocean shipping. He prescribed that diversification motivates the organisation for growing, reducing risk and making profit to create inconsistency of shareholder view.

OOCL diversified in both concentric and conglomerate to develop their organisation economically also creating brand value. But they highly focused on concentric diversification because shipping is the derived demand and highly globalized business where customer needs all kind of logistics support. Providing the logistics support they made strong information systems from the origin of transport to the final destination which one is the full version of logistics.

The OOIL group diversified in container business by creating the OOCL logistics which helps to add value in their core business ocean shipping. In addition, they involved in port terminal business in Kaoshiung (China) and Long Beach (North America) which form an integral part of international containerised transport business ( OOIL,2010a). The cargo smart is the innovative software of OOCL by which they can keep relation with their clients in 24 hours. Preliminary it is developed for their own organisations but now using by most of the logistics company of the world. It ( CargoSmart,2010) is a Software as a Service (SaaS) global shipping and logistics solutions provider that enables companies to lower transportation management costs, streamline operations, and reduce the risk of late shipments.

For getting the domestics cargo, they established OOCL china domestics limited for getting the domestics cargo which also add value in their business. Due to heavy industrialization in China and having competition with national and international shipping company, OOCL diversified in their product to create a good marketing approach to the local trader. Kaoshiung port terminal is supporting them by giving logistics centre facilities to the shipper and consignee in China. Furthermore, road and rail transportation also help to attract the customer as it is the multimodal facilities for transporting the cargo at carrier’s risk. Enhance, they structured intermodal service in China, Europe and North America

In conglomerate diversification, they established property business in two countries ( China and USA) as OODL which helps to increase the shareholder value and future of the company for any crisis or recovery of their core business.

b) Vertical Integration in OOCL

There is a vertical integration in OOCL diversification as they set a list of product and service in front of their clients. The core business of OOCL is ocean shipping that means selling the vessel space to the customer and providing the facilities of instrument container for caring the cargo. Along with this business they integrated the services by backward and forward integration. The backward facilities are the information facilities by which customer can log on from any place of the world. In addition, Logistics Company like OOCL logistics, intermodal systems also added in backward integration. The forward facilities are port and terminal business which added value to attract the customer for clearing the cargo easily and economically.

C) Performance and Outcomes.

Diversification and performance are correlated in their potential activities but depends on the acceptance of the customer. Grant (2008) believes that diversification has the potential to create value for shareholders where it exploits economics of scope and where transaction costs in the market for resources make it inefficient to exploit these economics of scope through market contracts. The shipping market depends on its cycles from the ship building to scrapping and mid times using facilities. Moreover, it’s perishable service where customization is very important to use its all cycles. As a container service main line operator, it is very difficult to run the business by only its vessel performance but also need connecting facilities to keep the customer. Diversification in OOCl helps to create logistics products or service like Cargo Smart, Intermodal, Port & Terminal and catalyst their core business ocean shipping. The conglomerate diversification of OOCL in property business helped to survive in recession. Due ( Reuters,2010) to global economic downturn and company huge loss in this downturn , OOIL group has sold $2.2 billion in Chinese property to raise cash and focus on its core shipping business.

07. CRITICAL ANALYSIS

The diversification strategy of OOCL is partially failure. Due to economic downturn, group is unable to sustain and sold their unrelated property business OODL. It will be impacted to their core business because shareholder will not be influenced to keep their share. In addition, they had opportunity for developing their business in port terminals but sold two terminals out of four. Port terminals are big access of a shipping company. However, their present terminal is using by their own and grand alliance vessels.

The best option for container shipping in strategic management may be in global strategy because this is the highly globalised industry. They can choose the strategy for increasing their services in all over the world. Some companies are very successful in M&A like MAERSK. They merged with Sealand firstly and finally acquired P&O Nedlloyd which one is the great and highly capitalized acquisition in shipping industry. OOCL has great opportunity to merge with some African or South American container line to diversify their business in these regions. It will bring more customers. In addition, their core competence of HR policy indicated that CSR may be the best strategy to develop the business. The Grand Alliance ( Hapag-lloyd,2009) formed in 1998 is the leading integrated consortium in global container shipping by the leading main line operator in container shipping Hapag-Lloyd (Germany), MISC Berhad (Malaysia), NYK (Japan) and OOCL (Hong Kong). Jointly they are introducing shipping routes and new services day by day to extend the container shipping.

08.CONCLUSION

Lasserre (2007) stated that managers, politicians, journalists and academics are commonly using the concept of globalization along with global industries, competition, or corporation or strategies to globalize or die. Container shipping industry is highly globalised as it is the derived demand of world trade. Moreover, it has to fight with same line industry like dry bulk or tanker shipping. The business rivalry among the main line container operators is very high. In addition, world alliance by some companies that making groups and start consolidated business is the new dimension to minimize the loss or maximizing the profit. Strategic alliance between two or more firms like the grand alliance of OOCL with other operators brought competitive advantages in business. OOCL is the family business organisation and featured the core competency of human resources. SWOT analysis of the organisation and diversification strategy may show the ways to face the global economic downturn and be more strategic in their business.