Maple leaf foods free essay sample

Maple leaf foods is one of the leaders in the consumer packaged food industry. Their operations span across Canada, the United States, United Kingdom, Asia, and Mexico. A few brands they produce are Schneider’sâ„ ¢, and Dempster’sâ„ ¢ which are known worldwide. The company was created in 1961 and the origins can be traced back to Grantham Mills in 1863. There are three groups Maple leaf operates in, Meat Products Group, Bakery Products Group, and Agribusiness Products Group. The first two groups are self-explanatory but the Agribusiness Products Group deals with recycling animal by-products into animal feed, amino acids, supplements, and biofuel . Introduction We are going to look at how Maple leaf dealt with the Listeria outbreak in the package meat products group, how they dealt with the legal issues and how they interacted with the public perception of their company. The focus will be mainly on the nonmarket environment but we will briefly dive into Maple leaf’s market environments as well. We will write a custom essay sample on Maple leaf foods or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Fours I’s Issue The summer of 2008, reports that Listeria was found in numerous products and Maple Leaf’s products are being recalled. Not only have the products tested positive for Listeria but multiple deaths have been directly linked to Maple leafs products . This brings about two issues we need to address. The first issue is a public perception of Maple leaf and how this Listeria outbreak changed public opinion on the company. The second issue will be in the legal sector, from patrons that purchased Maple leaf meat products and became ill or passed on. Consumers are becoming hyper aware about the safety of their food and any time a company has a misstep like Maple leaf they are going to be negative consequences. Intuition To see how far spread the issue has gone we will look at the institutions that are involved from Maple leafs Listeria outbreak. The media covered the issue with their own viewpoint and brought the issue to the public. The Canadian Food Inspection Agency and the Public Health Agency of Canada were directly involved in confirming the presence of the listerosis bacteria . Any wholesaler or grocery store will have to track down Maple leaf products and send them back. The suppliers to the Maple leaf plants would have to wait until the meat packing plants were up and running again. Direct buyers of Maple leaf products such as hospitals and nursing homes have a tough time dealing with the issue. The publics sentiment of Maple leaf and how to handle this issue also can be considered an institution. Canadas federal government was also affected with the idea of amending the food and drugs act. Interest Groups The interest groups that were involved were as follows; trial lawyers, taxpayers, citizens that were directly affected by the Listeria outbreak, consumers of Maple leaf products and other producers in Maple leafs industry. The trial, lawyers, taxpayers, citizens and consumers were directly affected by the Listeria outbreak. The other producers in Maple leaf’s industry were indirectly affected because stigma brought in by this issue. Information Over 220 products were recalled by Maple leaf and it is estimated that the recall will cost Maple leaf $20 million Hundreds of people had fallen ill from the contaminated products and 23 people had died from Listeria related illness. In January 2009 a $27 million settlement was negotiated to pay to the victims and families of those affected by the Listeria outbreak. After heavy testing of Maple leaf’s products 30, out of a possible 841 product samples tested positive for Listeria. The food and drugs act was looked considered to be amended so that sodium acetate could be added as a preservative in the production of these foods . Sodium acetate would greatly decrease the chance of Listeria from being present in ready-to-eat meats. We define this issue as a moral hazard which creates almost 100% liability by Maple leaf to rectify this problem and to compensate those involved. Since this incident ranked high in intrinsic audience interest and had intensive coverage the story made it across the nation and the world. Market Maple leaf’s market environment is pretty standard for a company that sells consumer packaged food. They sell their product on a global scale and use mass media such as TV commercials and online ads to market their product . They are a publicly traded company and their success comes from the quality of their food and their innovative distribution channels. The company is not afraid of acquiring existing establishments to grow its product lines. In 1992, Maple leaf foods buys at 40% stake in McGavin foods which was a producer of bread and rolls for major grocery chains. There seems to be growing pattern of Maple leaf wanting to expand its company. They proposed building the 385,000 ft.? bakery and 402,000 ft.? meat processing plant in Hamilton Ontario. It is clear that the company is a driving force in the global market and shows no sign of slowing down. When it came for Maple leaf to respond to the issue, they were very quick to act and addressed the issue right away. They almost had a similar incident in 2009 where they voluntarily recalled 26,000 hot dogs that had might have been contaminated (Maple Leaf Recall, 2009). This shows how quick to act the company has become to protect its customers. Non Market Since Maple leaf has become such a large organization they have the ability to give back to the community. They sponsor hundreds of events across numerous communities advocating and helping hunger issues. Even before the incident in 2008 Maple leaf was trying to bring about innovation in the field. In 2004, Maple leaf began tracing the DNA from the package meat products from the farm to your plate. This initiative was to prevent enormous political and economic risk if one of their products were to cause problems within or outside Canada. They also called for other meatpacking plants to do the same and which would bring about a high level of safety in industryTo further build on this idea in 2006 Maple leaf brought about their â€Å"40 steps to food safety† program. These 40 steps were meant to exceed government regulation and bring about transparency and traceability of their products. Since anything related to the food industry rates high in societal significance it only makes sense for Maple leaf to continue with this pattern. Integrated strategy The two practices Maple leaf uses to integrate the market and nonmarket activities are promoting the high quality of their goods mixed with promoting their high safety standards. These two areas work well together in promoting a strong brand image and to stay in the right side of public sentiment. They also tie in their practices of supporting communities who need help with hunger issues with in the major markets where they distribute their products. It is a smart move since, they are branching out globally and communities not only want to bring them in for the high quality products but also to help the less fortunate in their communities. You can also tie in Maple leaf’s quest for high safety standards directly from the nonmarket environment to the market environment by their actions to try to change the whole industry and their interactions in the regulatory field to change laws to increase safety. This shows leadership in the industry and makes Maple leaf look very proactive in the public eye. Repositioning From an overall standpoint, Maple leaf has been quite present in the nonmarket environment and their position on their integrated strategy seems to be an effective method. That doesnt mean they are perfect. There are some areas that they can improve on. Their focus on creating innovative safety practices is good, but their application in the nonmarket environment could be improved upon. Instead of just targeting the whole industry and the safety practices they should focus a little more on consumer level food safety. They should partner with more schools to help improve education in food safety and also improve the food preparation facilities within the schools. Their targeting of safety at home seems to be a little too broad and could see more focus. The work they do on improving the safety of their industry also needs to be made more public and their successes should be showcased. It took too much digging to find information on Maple leaf’s actions on improving safety within the industry. Their involvement with the regulatory bodies within Canada should be increased and they should also be more active in other countries laws of other countries in regards to food safety in their industry. Conclusion Maple leaf response to the listeria outbreak was done in a timely fashion and was dealt with appropriately. They admitted their liability and compensated the appropriate parties. They not only talked about their own faults but shifted some of the focus to the industry as a whole to limit less attention to them directly. Their nonmarket strategy was handled somewhat effectively by being proactive before and after the incident. When it came to product safety. The innovative work they did recommend to the industry should have been celebrated and should of have been made more public . Their work with helping communities around the world with hunger problems is an effective strategy but more promotion is needed. As stated before, direct interaction in schools promoting food safety would be, more effective means of positioning in the nonmarket environment. An incident like this most likely would have ruined some companies, but the effective response by Maple leaf allowed them to recover and slowly become a global leader in their industry.

The Impact of the Telephone on Society essays

The Impact of the Telephone on Society essays The Impact of the Telephone on Society When Alexander Graham Bells main goal in developing the telephone was to allow everyone, including the poor to have communication ability through the use of the telephone. The telephone was the first communication to allow us to maintain relationships over long distances. Because of this technology our society and the world changed. It is easy to take technology, inventions, and advances in any field for granted. We accept that we have computers, appliances, and the telephones. We do not consider the impact that these technologies have on our lives. They do have an impact whether good or bad. They affect our lives in ways that we may not even know. One of the most influential, and controversial, inventions has been that of the telephone. When the telephone was introduced it was met with some resistance and a few technical problems. As time passed it became so accepted that almost everyone in the western world had a telephone. The telephone was marketed in that it would incr ease revenue, employment, and an improve communication (Robertson 230). Like most new technology the telephone at first could only be afforded by the rich. To make telephone usage less expensive, coin operated and metered telephones were introduced as well as the party line in which numerous households were connected to the same line. The largest impact of the telephone was the effect on rural life. The party line was used everywhere but it had the greatest effect on the isolated farm. The advantage was communication and reduced the loneliness for the farmers wife (de Sola 49). The party line was the first conference call, the farmers could hold community meetings around a specific day and time .The telephone also provided security and helped in emergency situations despite the isolation (de Sola 49). It worked like a security system keeping would be criminals away from houses who displayed phon...

Cast versus forged engine pistons Research Paper

Cast versus forged engine pistons - Research Paper Example Centrifugal casting has been used for the production of cylindrical parts since time immemorial. The two types of machines used to achieve these are broadly classified as horizontal and vertical types. The horizontal ones are named so because they usually rotate around a horizontal axis while the vertical ones rotate around a vertical one. The horizontal machines are typically used to make pistons and other castings that are simple in shape. The vertical machines are best suited for making castings that are not regular in shape (Soares, 22). The importance of pistons can not be bargained. In a typical engine, pistons are used in order to convert the thermal energy into mechanical energy. Pistons are used to convey the gas forces through the linking rods to the crank shaft. They are also used in order to seal off the combustion part against the possible gas leaks in the crankcase. In addition to preventing leakages, they also help to avert any possible infiltration of oil that might e manate from the crankcase into the combustion part of the system. Last but not least, pistons are used to release the heat absorbed as a result of the combustion thereby assisting in the function of the cooling oil. The pros and cons As we have observed, aluminium is a preferred material in pistons, whether one is using casting or forging. Aluminium has a high thermal conductivity which makes it a very ideal material for the job. The modern gasoline as well as diesel engines have created a need for the creation of pistons that are lighter in weight but at the same time that have a greater capacity of thermal load. This has been made possible due to the novel designs through the use of innovative coating technologies. Pistons are usually exposed to very robust conditions. The mechanical load that the pistons have to handle comes from the very high pressure in the combustion part. The pressure typically goes up to 200 bars. Another source of mechanical load is the extreme force of ine rtia. This is as a result of heightened acceleration of reciprocating motion pistons (Soares, 27). Pistons can either be produced from cast or from forged aluminium alloys. There are different types of alloys that are used in the casting or forging of pistons. The first type is the standard piston alloy. It is an eutectic Al-12% Si alloy. On average, it has at least one percent each of Cu, Mg and Ni. In order to meet the demands of the current modern engines, there have been special eutectic alloys developed in order to achieve better resistance to extreme conditions. The hypereutectic alloys typically have eighteen and twenty four percent of Si. They come with the advantage of lower thermal expansion but they have the disadvantage of lower strength. Developers of pistons usually have their own customizations in order to fit the different unique requirements but they are generally based on these underlying principles. Most of the pistons on the market are developed using the gravity die casting technique. One important advantage of casting is that the optimized alloys in conjuction with the controlled environemtn of production make the development of the pistons that are low in weight possible (Soares, 23). Forged pistons however, win over their casted counterparts when it comes to withstanding higher pressure. The forged

Homework #6 Essay Example | Topics and Well Written Essays - 500 words

Homework #6 - Essay Example The ideology is driven from the whole concept of use-value, exchange-value and commodity. Marx defines the Fetishism ideology into themes. He first states that the exchange-value of a commodity depends major on the labor used in its production process. When determining the value of a product one will tend to use the commodity to compensate the labor. The commodity in his ideology is dependent since it relays on what efforts invested in terms of labor. He also explains the social relation between producers and eternal factors. He shows how different producers relate despite their difference in commodities they offer in the market(Wood, 1970). He uses the relativity of the products to create a personal concept of the market. For instance, one who makes tea and sells directly relates to who bakes cakes and bread. He finally states laboring activities controls the activities of a product. In a real life scenario, the exchange of commodity follows the concept of Money- Commodity- money. This means that one sells a product in order to generate more money and utilize it to make offers and expand productivity. Karl Marx on the other hand explains that money is replaced in its commensurability with human labor (Wood, 1970). Thus, his structure is Commodity- money- commodity. Different from this the fetishism ideology with real life is the fact that labor used while producing does not necessarily reflects the product. In that while, producing one may fall ill and hence spends resources in treating himself hence the final product will not reflect the amount of resources used in the production. Socially it clearly shows how the people relations in the production line as were the case of the tea maker and the cake baker clearly shows a contrasting relation different from what Marx stated. They fail to relate in terms of the exchange value in that they independently fix the value without considering what the other person will react (Wood, 1970). In this

Steps in System Design

Steps in System Design CHAPTER 3 HIGH LEVEL DESIGN 3.0 High Level Design The high level design discusses an overview of how a system be supposed to work and how the higher stage sections to contains the suggested answer. It would be supposed to have very less information about implementation that is no clear class descriptions and during case not even details such as data base type (relational or object) programming language and platform. High level design gives an overview of system flow. However, this gives more information for the user to understand the logic. Here we see the basic knowledge about the system design and architecture. Following are the issues that we see in this part which are the primary components for the design. 3.1 Design Considerations The key design considerations of deadline constraints broadcasting in wireless network are: Creation of network with twenty nodes, including the base station node and its client nodes. Broadcasting the packets by base station to its nodes. Calculating all the measures and getting feedback information from all nodes for the transmission. According to which designing the three main scheduling policies for the broadcasting delay in the network. Network which does not uses network coding mechanism, designing the greedy scheduling policy. Network which uses the network coding mechanism for which designing the linear coding scheduling policy and pair wise XOR scheduling policy. Finally performance analysis is done for each scheduling policy, considering the deterministic, probabilistic arrivals of packets for asymmetric and symmetric topology. 3.2 System Architecture of Deadline Constraints Broadcasting in Wireless Network System Architecture of deadline constraints broadcasting in wireless network in shown in figure 3.1 System architecture is the theoretical design that describes the structural and behavioral features of a system. The description of the architecture is the official explanation of the system. That is arranged in the form that maintains interpretation concerning the structural possessions of the system. And it characterizes the system apparatus or building blocks and gives a preparation from which yield can be procured and systems are developed that are work jointly to apply in general system. The base station will broadcast the arrival of packets using different types of systems like greedy scheduler, pair wise XOR, linear coding and feedback scheduler to the particular nodes. Design feasible optimal policy for the broadcasting of delay in traffic. Since the base station will not having any idea regarding feedback information from all its client nodes, it cannot identify the real timely throughput established by each client node for the flow of packets. Though, with the knowledge of channel reliabilities, the base station will calculate approximately the timely throughputs by measuring the possibility that a client node gains the packet of a flow in every time gap. There is stationary randomized scheduling policy and a positive number, which decides a schedule arbitrarily from the scheduling space where it is based on the packet coming at the creation of the period and self directed of the system history before the time interval that accomplish the system with timely throughput supplies. A system with any coding mechanism, a designing policy aims to maximize, a policy is feasible optimal. Three different kinds of coding mechanisms, first think about a system where network coding is not been used. In each time slot, the base station will broadcast the unprocessed packet from the stream that has been produced one packet in the time interval. Deduce a few separation of flows has been produced packets at the starting of the interval the probability that client receives the packet from flow in this interval. Since the base station can make broadcasts in an interval. The probability that client has not received the packet from flow during the first transmissions, and receives this packet when the base station broadcasts the packet from flow for the next time. Thus, classify the subjective trivial liberation chance of the broadcast of an online scheduling Greedy algorithm. The use of pair wise XOR coding for broadcasting, the base station can either broadcast a raw packet from a flow, or it can choose to broadcast an encoded packet from flow packet from flow, the XOR of a packet from flow with a packet from flow. A client can recover the packet from flow either upon directly receiving a raw packet from flow, or upon receiving a raw packet from flow and an encoded packet. Consider a system with two streams of flow of packets that produce single packet in every interval with only individual client whose direct reliable. Assume that there are six time slots in an interval. Suppose that the base station transmits each packet three times in an interval. Thus, a system with timely throughput requirements is not possible when complex network coding is not in use. Thus system with pair wise XOR coding can achieve strictly better performance than one without network coding. By employing linear coding in the direction to advance the performance of dissemination delay constraints flow of packets besides the unprocessed packets the base station can also transmit small packages that having linear grouping of packets from any streams of flows. The consumer can decipher all packets from the separation of streams if it receives at least packets that having linear grouping of packets from those stream of flows. If a client receives less packets having linear combination of groups cannot be decoded from those flows of packets. Figure 3.1: System Architecture of deadline constraints broadcasting in wireless network 3.3 System Specification using Use Case Diagram Use case diagrams are represents the typically noticeable interactions with the aim of the system will perform with the users and external systems. They are exercised to depict in what way the user can carry out the role by means of the systems and it form an important part of the progress of the method. Use case diagrams describe schedules of work, user guides, test plans and are functional all the way through the whole development progression. Use case models use a concept known as actors to visualize what is deemed to be outside the system. The use case also describes about the exterior unit will interrelate with the system and the work that the system will need to perform. Use case scenarios that describe how actors use the system. The actors are external factors that interact with the system. Actors are identified based on who is using the system or who will be using the system. The actor represents the role a user plays with respect to the system. Identifying actors is an important as identifying classes, structures, attributes, associations and behavior. 3.3.1 Use Case Diagram for Deadline Constraints Broadcasting in Wireless Network Use case Diagram of deadline constraints broadcasting in wireless network is shown in figure 3.2. Figure 3.2: Use case Diagram of deadline constraints broadcasting in wireless network Name of the module: deadline-constrained broadcasting in wireless network. External users or actors: base station and client node. Functionality of the system: functionality of the system includes adding flow and broadcasting flow. Broadcasting flow has the functions like greedy scheduler, pair wise XOR scheduler, linear scheduler and feedback scheduler. Description of deadline-constrained broadcasting in wireless network: The use case diagram of the deadline-constrained broadcasting in wireless network shown in figure 3.3. The base station used to add flow and broadcast the flow in the network, where it can use any technique to broadcast the delay in the network like it may use non coding mechanism by using greedy scheduler policy, and coding mechanism by introducing pair wise XOR scheduler policy, linear scheduler policy and it may use feedback scheduler policy. There by base station broadcast the delay to the respective client nodes. 3.4 Data Flow Diagram for Deadline Constraints Broadcasting in Wireless Network A data flow diagram is a graphical depiction where the data flows all the way through an information system. It is also used for the visualization of data processing that is structured design. In DFD information flows from the external source or an internal process towards the internal information store or the external information drop through is the midway course. Level_0 The context-level or level 0 data flow diagram describes the interface between the method and external agents which operate as data sources and data sinks. Scheduled on top of the background diagram also termed as the Level 0 DFD where the systems interfaces with the outside world are modeled merely during the data flows crossways the system edge. In the context diagram the complete system as only one process and provides no clues to its own internal group. Figure 3.3: Level 0 Data flow diagram for deadline constraints broadcasting in wireless network 3.4.1 Data Flow Diagram for Deadline Constraints Broadcasting in Wireless Network Level _1 The Level 1 DFD describes about the division of sub systems of the complete system and each of the sub systems deals with at least one of the data flows to or from the outside way and which together provides all of the functionality of the process. It is also recognize the internal data provisions that should there in sort of the progression to do the work and it illustrates the flow of information among the diverse parts of the procedure. Figure 3.4: Data Flow Diagrm of Probability data flow for deadline constraints broadcasting in wireless network Table 3.1: Transmission of packet of different flow deadline constraints broadcasting in wireless network 3.4.2 Data Flow Diagram of XOR coding for Deadline Constraints Broadcasting in Wireless Network Figure 3.5: Data flow diagram of XOR coding for deadline constraints broadcasting in wireless network Table 3.2: Transmission of XOR coding for deadline constraints broadcasting in wireless network 3.4.3 Data Flow Diagram of Linear coding for Deadline Constraints Broadcasting in Wireless Network Figure 3.6: Data flow diagram of linear coding for deadline constraints broadcasting in wireless network Table 3.3: Transmission of linear coding for deadline constraints broadcasting in wireless network 3.4.4 Data Flow Diagram of Broadcasting packets for Deadline Constraints Broadcasting in Wireless Network Figure 3.7: Data flow diagram of broadcast packet for deadline constraints broadcasting in wireless network Table 3.4: Transmission of broadcast packet for deadline constraints broadcasting in wireless network 3.5 Sequence diagram for Deadline Constraints Broadcasting in Wireless Network Sequence diagrams display interactions between the objects from temporal standpoint. A sequence diagram represents an interaction between objects that focuses on the message. An object is represented by rectangle and its lifeline is represented by a vertical bar line. Initialization Flow The sequence diagram of the initial flow is shown in figure 3.8. STEP 1: The admin directs the main to create the new network and the network is created. STEP 2: The new base station is created by the network by main through admin. STEP 3: The new node is created by the network by main through admin. STEP 4: The network is shown by network through the main and admin. Figure 3.8: Sequence diagram for Initialization Flow Greedy Scheduler The sequence diagram of the greedy scheduler is shown in figure 3.9. STEP 1: The admin add the flow by base station and starts broadcasting of packets. STEP 2: The new base station is starts scheduling of the packet flow to greedy scheduler. STEP 3: The greedy scheduler sends back the packet flow once it done coding. STEP 4: Then broadcasting takes place from base station to node. Figure 3.9: Sequence diagram for Greedy Scheduler Linear coding scheduler The sequence diagram of the linear coding scheduler is shown in figure 3.10. STEP 1: The admin add the flow by base station and starts broadcasting of packets. STEP 2: The new base station is starts scheduling of the packet flow to linear coding scheduler. STEP 3: The linear coding scheduler sends back the packet flow once it done coding. STEP 4: Then broadcasting takes place from base station to node. Figure 3.10: Sequence diagram for Linear coding scheduler Feedback scheduler The sequence diagram of the feedback scheduler is shown in figure 3.11. STEP 1: The admin add the flow by base station and starts broadcasting of packets. STEP 2: The new base station is starts scheduling of the packet flow to feedback scheduler. STEP 3: The feedback scheduler sends back the packet flow once it done coding. STEP 4: Then broadcasting takes place from base station to node. Figure 3.11: Sequence diagram for Feedback scheduler Pair wise XOR scheduler The sequence diagram of the pair wise XOR scheduler is shown in figure 3.12. STEP 1: The admin add the flow by base station and starts broadcasting of packets. STEP 2: The new base station is starts scheduling of the packet flow to pair wise XOR scheduler. STEP 3: The feedback scheduler sends back the packet flow once it done coding. STEP 4: Then broadcasting takes place from base station to node. Figure 3.12: Sequence diagram for Pair-wise XOR scheduler 3.6 Classes Designed for the system The class diagram is the major structural block of objective leaning modeling. Class diagrams can be used for information modeling. The classes in a class diagram shows both the major objects and communications in the systems and the classes exist to program. It is used both for general conceptual modeling, for systematic applications, detailed modeling, and for converting the models into encoding rules. In the diagram classes are presented with boxes shapes which have three parts. The upper part of box has the name of the class The middle part contains the attributes of the class The bottom part of box produces the processes or functions the class has to perform The design of a system has the number of classes that are recognized and joined together in the class diagram which assists to find out the relations among objects. The attribute shows the passage thread that is parsed in the variety of properties of the characteristic form component. Operation is used to show operations defined on classes. It is the service of an instance that the class is requesting to perform the function is as shown in the text string that may be parsed to the different properties of an operation function of the model component. There are relations between the different classes in the class diagram that are represented using the following notations. Composition ( ) is a very strong option of the possess association relationship, composition is specific. Composition has a strong existence cycle dependent among occurrences of the container class and occurrences of the contained module. If the container is cracked or damaged normally every occurrence that it contains is destroyed fully. Generalization ( ) specifies that one of the two connected program (the subclass) is measured to be a dedicated form of the other program (the super type) and super class is well thought out as ‘generalization’ of subclass. This way any occurrence of the subtype class is also the example of the super class. Multiplicity notations are positioned near the endings of a relationship. And these signs specify the number of occurrences o single class linked to one occurrences of the other class, ‘1’ states that no more than one instances are used, and ‘0..*’ states that zero or many instances are used. Figure 3.13: Classes diagram for deadline constraints broadcasting in wireless network The class diagram for deadline constraints broadcasting in wireless network is represented in figure 3.13. the figure shows the main class, which defines the operations +createNetwork( ), +add BS( ), +add Node(), +show Network(). The class network defines the operation, +add BS(), +add Node(), +show Network(), with one -to-one aggregation to main class. The class Base station defines the operation, +add Flow(), +broadcastPacket(), +sendPacket(), with one -to-one aggregation to network class. The class Node defines the operation, +collectPacket() with generalization to statistics class it also defines many-to-one aggregation with network class The class greedy scheduler, linear coding scheduler, feedback scheduler, pair wise XOR scheduler, defines the operations +schedulePacketFlow() with respect to their scheduling principles, and they are one-to-one aggregation with the class Base station. Summary In this chapter, a brief overview of design consideration, system architecture, design steps is presented and further discussion of the use case diagrams, class diagrams, data flow diagrams and sequence diagrams next chapter discusses detailed design of the system.

An Analysis of Police Reforms

1 COMPARATIVE JURISPRUDENCE PROJECT TOPIC:An analysis of police reforms, in light of Aristotle’s theory of justice SUBMITTED TO: PROF. AMITA DHANDA SUBMITTED BY: DEEPINDER BAL ROLL NO. – 11 LL. M I YEAR EMAIL- deepinder. [email  protected] ac. in 1 Abstract In 1996, two former Director Generals of Police requested the Supreme Court to direct the central and the state governments to adopt a set of measures to address the most glaring gaps and bad practices in the functioning of the police. 2Given the gravity of the problem and the total uncertainty as to when police reforms would be introduced, the Supreme Court, on 22nd September, 2006, delivered a historic judgment where it considered that it could not further wait for governments to take suitable steps for police reforms and issued 7 directives for immediate compliance which were binding upon central and state governments, until they frame appropriate legislations. The researcher would like to relate the topic with Aristotle's theory.Aristotle's vision of a good civil society and the teleological theory can be related to the purpose of introduction of the police reforms viz. the judgment and the purpose of the implementation of the judgment. 2 Topic- An analysis of police reforms (In light of the judgment, Prakash Singh & others v. Union of India and others on 22, Sept, 2006) 3 The Government of India appointed a National Police Commission in 1977 to examine the role and performance of the Indian police as a law-enforcing agency and as an institution to protect the rights of the citizens enshrined in the Constitution.The Commission submitted 8 reports in a span of 2 years, wherein it made various recommendations so as to redefine the role, duties, powers and responsibilities of the police. With the 8th report, it drafted a new Police Act incorporating certain essential recommendations, which were never implemented. In 1996, a petition was filed by 2 former Director Generals of Police, praying for the issue of directions to the Government of India to frame a new Police Act drafted by the Commission to ensure that the police is made accountable essentially and primarily to the law of the land and the people.As a part of my project research, I would like to examine the need of police reforms in India, the implications and implementation of the 2006 judgment of the Supreme Court (in response to the petition of 1996), in relation to the Aristotle’s theory of justice and his concept of a good civil society. India has established a vibrant democracy, where good governance and administration of justice to the citizens are essential attributes. The primary institution on which the state relies for the maintenance of law and order is the police.Policing is an essential public service and it is the duty of every state to provide its people with the best police service possible. The society perceives police to be the custodians of law and order who provide safety and security to all. Thus police personnel have a vital role in a parliamentary democracy like India. The Police as an organized institution came into existence in India with the Police Act of 1861, which was the advent of the British. The police act was designed on the British model of colonial control, which was meant for its subjects and not for the free citizens of a democracy.Independence has changed the political system in India, but the police system is still governed by The Police Act of 1861. It is shocking to believe that, till now, no government, central or state, has taken the initiative to replace the Police Act of 1861 with new legislation, which would be in tune with requirements of democratic policing. Aristotle in his theory states that the purpose of any organization is to from good citizens and to cultivate good character.We must recognize that the police is one of the most vital social institutions needed to construct a democratic society in which human rights and freedoms a re respected and protected. He also stated that â€Å"the end and purpose of a polis is the good life, and the institutions of social life are means to that end†. 1 1 Who deserves what? , Michael sandel’s theory of justice. 3 A political community exists to promote a good life and this aim cannot be achieved without the support of an efficient social organization.So, the police service is a significant part of the socialization body and it seeks to enhance the democracy and the civility within the society. 4 The aim of the police force is to promote the welfare of society for which they must be equipped with the professional knowledge and the necessary powers for creating a social just environment for the citizens. Aristotle believes that it is possible to reason the purpose of social institutions. He reasons that the essential nature of the social institutions is not fixed once and for all.Policing is a dynamic process. It needs to be constantly reinvented in order to be effective. Civil society advocates for a variety of policy changes, new legislations all aimed towards public good. Law is needed both to help habituate citizens to virtuous actions and to help maintain the salutary habits they acquire. For Aristotle, the primary purpose of law is to cultivate the habits that lead to good character. â€Å"Legislators make the citizens good by forming habits in them, and this is the wish of every legislator, and those who do not effect it miss their ark, and it is in this that a good Constitution differs from a bad one†. 2 Presently, the police organisation is marked by aback of democratic functioning and adequate police direction. Police priorities are defined by, and changed according to, the will of the political executive. The manner is which political control has been exercised in India has led to gross abuses, resulting in the erosion of rule of law as well as political credibility. At present the laws governing the relationship betw een police and the political executive are not clear enough to prevent the blurring of boundaries.Over the course of time this lack of clarity has permitted all kinds of illegitimate interferences to seep into the police functioning and is one of the seminal causes for poor overall management of the police and the difficulty of fixing responsibility so as to achieve effective, unbiased and accountable performance. In a democracy, the police have to function as any other public service, which renders services to the community and not as â€Å"force†. Aristotle has also made a distinction between â€Å"rule of law† and â€Å"rule of force†.The rule of law is a democratic rule for the benefit of the entire population (all citizens, the public or the nation as such), whereas the rule of force is an authoritarian, perverted and corrupted form of rule for the advantage of the ruler. 3 In relation to the above context, the Prime Minister, Dr. Manmohan Singh has observe d, â€Å"Today, police forces have to serve the interests of the people, not rulers. In a democratic framework as we are in today, there is need to have in the police forces a managerial philosophy, a value system and an ethos in tune with the times.I had 2 3 Richard Kraut, Aristotle: political philosophy, Oxford University press, 2002. Aristotle (384-322 BC): The Polis. Hammondsworth, 1991, Penguin. 4 5 emphasized the need to ensure that the police forces at all levels change from a feudal force to a democratic service. The spirit of public service, of respect for the rights of individuals, of being just and humane in ones action must permeate the entire police force†. 4 The Supreme Court too, reiterated the need of enforcing the rule of law in the police system with its verdict of the 2006 judgment5.The Court ordered that police reform must take place. The states and union territories were directed to comply with seven binding directives viz. to Constitute a State Security Commission, selection and minimum tenure of DGP, minimum tenure of IG of police and other officers, separation of Investigation, Constituting a Police Establishment Board, to constitute a Police Complaints Authority and to set up a National Security Commission, that would kick start reform. These directives pulled together the various strands of improvement generated since 1979.The Court required immediate implementation of its orders either through executive orders or new police legislation. According to me, the judgment of the Supreme Court though came after a decade of the filing of petition; it served the dire necessity of the implementation of police reforms, which was never initiated by any of the state or the central government so far. According to Aristotelian’s theory of justice, every social practice or an institution is established for some purpose, end or aim. The aim of the police force as a social institution is to maintain law and order in a democratic society. If this purpose is not being achieved, the need for police reforms in keeping with the requirements of a modern, democratic state is self-evident. Aristotle has described his theory of justice as: Justice is teleological- defining rights requires us to figure out the telos (the purpose, end, or essential nature) of the social practice in question. Justice is honorific- to reason about the telos of a practice- or to argue about it- is, at least in part, to reason or argue about what virtues it should honor and reward. 6 In any country, administration of justice is one of the primary functions, which it seeks to promote.One of the ways through which this purpose could be achieved is to have a policing system, which is equipped with such adequate powers. Aristotle in his theory while discussing the concept of justice with regard to telos and honouring of virtues, stresses that you honour only those persons who help in achieving your purpose. 4 Prime Minister’s address to the Ann ual conference of DGPs / IGPs of States and UTs; October 6, 2005; New Delhi; retrieved from http://pmindia. nic. in/speech/content. asp? id=207 5 Prakash Singh and others v. Union of India and others, Writ Petition (civil) 310 of 1996. 6 Supra, note 1. As according to Aristotle only virtuous people are honored, to imbibe that virtue in the police force, it is necessary that they should have such powers where they can function efficiently and effectively thus, imparting goodness in the society. 6 Aristotle says that essential nature is attributed to the social institutions so that the purpose or the telos can be achieved. Here, the police being still governed under the 1861 act have not been given the required powers through which they can achieve the purpose of policing. The crux of the police reform is to secure professional independence for the police to unction truly and efficiently as an impartial agent of the law of the land and at the same time, to enable the government to ove rsee the police performance to ensure its conformity to law. The need of law enforcement is to maintain peace, enforce the laws of the land, protect the people from criminals, and to help ensure the safety of the citizens. The corruption in political system and political leaders has made the Indian police toothless; so far doing their duties is concerned. If the police have no powers, it cannot function to provide a safe and secure environment for its citizens.Coupled with undue political interference police functioning is plagued by the lack of policy directions and absence of any formal performance evaluation framework. The most glaring examples of illegitimate political interference affecting police work is evident in cases of communal riots and other disturbances. Public order is a critical necessity for progress. An unruly society would be a recipe for economic disaster. With the implementation of the police reforms the quality of life of the citizen, which is in great measure dependent upon the maintenance of public and police order will improve.Aristotle also states that â€Å"at his best man is the noblest of all animals, separated from law and justice he is the worst†. 7 Even after 6 years of the judgment have elapsed, no effective steps have been taken by a majority of states to incorporate the directives issued by the Supreme Court. None of the directions to professionalize the police force, to prevent arbitrary transfer of officers and introduction of transparency in the system have been implemented. The criminalization of Indian politics has eroded the authority of the police leadership and consequently the discipline of the force.Aristotle’s way of reasoning from the purpose of a good to the proper allocation of the good is an instance of teleological reasoning. Aristotle claims that in order to determine the just distribution of a good, we have to inquire into the telos, or purpose, of the good being distributed. The distribution o f good that Aristotle talks about, in my case is equivalent to the distribution of powers in a democratic society. If we look into the purpose of power being distributed it should be in the hands of those who would best utilise the power and help in the achievement of a purpose, which is the administration of justice. And 7 Supra, note 3. 7 since police is a medium achieving the justice, they should be given proper powers in order to achieve the telos. Aristotle had said, â€Å"It is in justice that ordering of society is centered. The justice system in many ways is the bedrock of a democratic society since it upholds the rule of law, which is the fundamental feature of a true democracy. Our laws have to be sensitive to the changes in social structure and social philosophy, a reflection of contemporary social consciousness and a mirror of our values as a civilization. Thus, non-accessibility of justice results in the erosion of rule of law as well as police credibility†. For Aristotle, justice means giving people what they deserve, giving each person his or her due. It involves two factors: â€Å"things, and the persons to whom things are assigned†. 9 As far as the implementation of the judgment is concerned, the court stressed the need for a buffer body between the police and the politicians, which will accord functional autonomy to the police even as they are supervised by the political executive. As a result the relationship between the police and politician will loose its present character of unfettered discretion and illegitimate interference.The non-seriousness in the approach of the state governments in abiding with the directives issued by the Supreme Court, destroy the very basis of a judicial mechanism. The purpose of the judgment was to provide a professional and a wellequipped police system, which can efficiently manage the democratic society. The lack of political will in implementing this reform is symptomatic of a larger malice in the system, whereby the politician is reluctant to let go off his control over the police and law enforcement agencies.The alacrity with which thousands of northeast Indians fled Maharashtra and Karnataka recently has once again underscored the complete lack of the faith of the common man in the law and order machinery. It is yet another reminder that more than anything else a multi cultural and multi ethnic society like India needs an a political, professional police force and an efficient judicial system that will serve the rule of law without fear or favour. It is absence of such a vital mechanism that is at the heart of the unchecked crimes, poor conviction rate and the general lack of faith in the law and order system that we see in India today.The police force is highly politicised and corrupt and more than anything else, it is the absence of strict enforcement of law and swift justice that is at the heart of the breakdown that we face today. Aristotle’s concept of a go od civil society where he talks about the law of the polis inculcating good habits and thus forming a good character sets us on the way to civic virtue. This virtue can be achieved with the implementation of the police reforms in the society. 8 9 Supra, note 3. Supra, note 1. 7 8 The quality of the justice system in the country, to a larger extent depends upon the working of a police force.Thus, having regard to larger public interest, it is absolutely necessary to issue the requisite directions. 8 Bibliography 9 ? Aristotle, Nicomachean ethics. Indianapolis: Bobbs-Merrill, 1962 ? Who deserves what? , from Michael Sandel’s Theory of Justice ? Morris, T. , (1998), If Aristotle ran General Motors: the new soul of business. New York: Henry Holt and Company, LLC. ? Richard Kraut, Aristotle: political philosophy, Oxford University press, 2002 ? Aristotle (384-322 BC): The Polis. Hammondsworth, 1991, Penguin 9 An Analysis of Police Reforms 1 COMPARATIVE JURISPRUDENCE PROJECT TOPIC:An analysis of police reforms, in light of Aristotle’s theory of justice SUBMITTED TO: PROF. AMITA DHANDA SUBMITTED BY: DEEPINDER BAL ROLL NO. – 11 LL. M I YEAR EMAIL- deepinder. [email  protected] ac. in 1 Abstract In 1996, two former Director Generals of Police requested the Supreme Court to direct the central and the state governments to adopt a set of measures to address the most glaring gaps and bad practices in the functioning of the police. 2Given the gravity of the problem and the total uncertainty as to when police reforms would be introduced, the Supreme Court, on 22nd September, 2006, delivered a historic judgment where it considered that it could not further wait for governments to take suitable steps for police reforms and issued 7 directives for immediate compliance which were binding upon central and state governments, until they frame appropriate legislations. The researcher would like to relate the topic with Aristotle's theory.Aristotle's vision of a good civil society and the teleological theory can be related to the purpose of introduction of the police reforms viz. the judgment and the purpose of the implementation of the judgment. 2 Topic- An analysis of police reforms (In light of the judgment, Prakash Singh & others v. Union of India and others on 22, Sept, 2006) 3 The Government of India appointed a National Police Commission in 1977 to examine the role and performance of the Indian police as a law-enforcing agency and as an institution to protect the rights of the citizens enshrined in the Constitution.The Commission submitted 8 reports in a span of 2 years, wherein it made various recommendations so as to redefine the role, duties, powers and responsibilities of the police. With the 8th report, it drafted a new Police Act incorporating certain essential recommendations, which were never implemented. In 1996, a petition was filed by 2 former Director Generals of Police, praying for the issue of directions to the Government of India to frame a new Police Act drafted by the Commission to ensure that the police is made accountable essentially and primarily to the law of the land and the people.As a part of my project research, I would like to examine the need of police reforms in India, the implications and implementation of the 2006 judgment of the Supreme Court (in response to the petition of 1996), in relation to the Aristotle’s theory of justice and his concept of a good civil society. India has established a vibrant democracy, where good governance and administration of justice to the citizens are essential attributes. The primary institution on which the state relies for the maintenance of law and order is the police.Policing is an essential public service and it is the duty of every state to provide its people with the best police service possible. The society perceives police to be the custodians of law and order who provide safety and security to all. Thus police personnel have a vital role in a parliamentary democracy like India. The Police as an organized institution came into existence in India with the Police Act of 1861, which was the advent of the British. The police act was designed on the British model of colonial control, which was meant for its subjects and not for the free citizens of a democracy.Independence has changed the political system in India, but the police system is still governed by The Police Act of 1861. It is shocking to believe that, till now, no government, central or state, has taken the initiative to replace the Police Act of 1861 with new legislation, which would be in tune with requirements of democratic policing. Aristotle in his theory states that the purpose of any organization is to from good citizens and to cultivate good character.We must recognize that the police is one of the most vital social institutions needed to construct a democratic society in which human rights and freedoms a re respected and protected. He also stated that â€Å"the end and purpose of a polis is the good life, and the institutions of social life are means to that end†. 1 1 Who deserves what? , Michael sandel’s theory of justice. 3 A political community exists to promote a good life and this aim cannot be achieved without the support of an efficient social organization.So, the police service is a significant part of the socialization body and it seeks to enhance the democracy and the civility within the society. 4 The aim of the police force is to promote the welfare of society for which they must be equipped with the professional knowledge and the necessary powers for creating a social just environment for the citizens. Aristotle believes that it is possible to reason the purpose of social institutions. He reasons that the essential nature of the social institutions is not fixed once and for all.Policing is a dynamic process. It needs to be constantly reinvented in order to be effective. Civil society advocates for a variety of policy changes, new legislations all aimed towards public good. Law is needed both to help habituate citizens to virtuous actions and to help maintain the salutary habits they acquire. For Aristotle, the primary purpose of law is to cultivate the habits that lead to good character. â€Å"Legislators make the citizens good by forming habits in them, and this is the wish of every legislator, and those who do not effect it miss their ark, and it is in this that a good Constitution differs from a bad one†. 2 Presently, the police organisation is marked by aback of democratic functioning and adequate police direction. Police priorities are defined by, and changed according to, the will of the political executive. The manner is which political control has been exercised in India has led to gross abuses, resulting in the erosion of rule of law as well as political credibility. At present the laws governing the relationship betw een police and the political executive are not clear enough to prevent the blurring of boundaries.Over the course of time this lack of clarity has permitted all kinds of illegitimate interferences to seep into the police functioning and is one of the seminal causes for poor overall management of the police and the difficulty of fixing responsibility so as to achieve effective, unbiased and accountable performance. In a democracy, the police have to function as any other public service, which renders services to the community and not as â€Å"force†. Aristotle has also made a distinction between â€Å"rule of law† and â€Å"rule of force†.The rule of law is a democratic rule for the benefit of the entire population (all citizens, the public or the nation as such), whereas the rule of force is an authoritarian, perverted and corrupted form of rule for the advantage of the ruler. 3 In relation to the above context, the Prime Minister, Dr. Manmohan Singh has observe d, â€Å"Today, police forces have to serve the interests of the people, not rulers. In a democratic framework as we are in today, there is need to have in the police forces a managerial philosophy, a value system and an ethos in tune with the times.I had 2 3 Richard Kraut, Aristotle: political philosophy, Oxford University press, 2002. Aristotle (384-322 BC): The Polis. Hammondsworth, 1991, Penguin. 4 5 emphasized the need to ensure that the police forces at all levels change from a feudal force to a democratic service. The spirit of public service, of respect for the rights of individuals, of being just and humane in ones action must permeate the entire police force†. 4 The Supreme Court too, reiterated the need of enforcing the rule of law in the police system with its verdict of the 2006 judgment5.The Court ordered that police reform must take place. The states and union territories were directed to comply with seven binding directives viz. to Constitute a State Security Commission, selection and minimum tenure of DGP, minimum tenure of IG of police and other officers, separation of Investigation, Constituting a Police Establishment Board, to constitute a Police Complaints Authority and to set up a National Security Commission, that would kick start reform. These directives pulled together the various strands of improvement generated since 1979.The Court required immediate implementation of its orders either through executive orders or new police legislation. According to me, the judgment of the Supreme Court though came after a decade of the filing of petition; it served the dire necessity of the implementation of police reforms, which was never initiated by any of the state or the central government so far. According to Aristotelian’s theory of justice, every social practice or an institution is established for some purpose, end or aim. The aim of the police force as a social institution is to maintain law and order in a democratic society. If this purpose is not being achieved, the need for police reforms in keeping with the requirements of a modern, democratic state is self-evident. Aristotle has described his theory of justice as: Justice is teleological- defining rights requires us to figure out the telos (the purpose, end, or essential nature) of the social practice in question. Justice is honorific- to reason about the telos of a practice- or to argue about it- is, at least in part, to reason or argue about what virtues it should honor and reward. 6 In any country, administration of justice is one of the primary functions, which it seeks to promote.One of the ways through which this purpose could be achieved is to have a policing system, which is equipped with such adequate powers. Aristotle in his theory while discussing the concept of justice with regard to telos and honouring of virtues, stresses that you honour only those persons who help in achieving your purpose. 4 Prime Minister’s address to the Ann ual conference of DGPs / IGPs of States and UTs; October 6, 2005; New Delhi; retrieved from http://pmindia. nic. in/speech/content. asp? id=207 5 Prakash Singh and others v. Union of India and others, Writ Petition (civil) 310 of 1996. 6 Supra, note 1. As according to Aristotle only virtuous people are honored, to imbibe that virtue in the police force, it is necessary that they should have such powers where they can function efficiently and effectively thus, imparting goodness in the society. 6 Aristotle says that essential nature is attributed to the social institutions so that the purpose or the telos can be achieved. Here, the police being still governed under the 1861 act have not been given the required powers through which they can achieve the purpose of policing. The crux of the police reform is to secure professional independence for the police to unction truly and efficiently as an impartial agent of the law of the land and at the same time, to enable the government to ove rsee the police performance to ensure its conformity to law. The need of law enforcement is to maintain peace, enforce the laws of the land, protect the people from criminals, and to help ensure the safety of the citizens. The corruption in political system and political leaders has made the Indian police toothless; so far doing their duties is concerned. If the police have no powers, it cannot function to provide a safe and secure environment for its citizens.Coupled with undue political interference police functioning is plagued by the lack of policy directions and absence of any formal performance evaluation framework. The most glaring examples of illegitimate political interference affecting police work is evident in cases of communal riots and other disturbances. Public order is a critical necessity for progress. An unruly society would be a recipe for economic disaster. With the implementation of the police reforms the quality of life of the citizen, which is in great measure dependent upon the maintenance of public and police order will improve.Aristotle also states that â€Å"at his best man is the noblest of all animals, separated from law and justice he is the worst†. 7 Even after 6 years of the judgment have elapsed, no effective steps have been taken by a majority of states to incorporate the directives issued by the Supreme Court. None of the directions to professionalize the police force, to prevent arbitrary transfer of officers and introduction of transparency in the system have been implemented. The criminalization of Indian politics has eroded the authority of the police leadership and consequently the discipline of the force.Aristotle’s way of reasoning from the purpose of a good to the proper allocation of the good is an instance of teleological reasoning. Aristotle claims that in order to determine the just distribution of a good, we have to inquire into the telos, or purpose, of the good being distributed. The distribution o f good that Aristotle talks about, in my case is equivalent to the distribution of powers in a democratic society. If we look into the purpose of power being distributed it should be in the hands of those who would best utilise the power and help in the achievement of a purpose, which is the administration of justice. And 7 Supra, note 3. 7 since police is a medium achieving the justice, they should be given proper powers in order to achieve the telos. Aristotle had said, â€Å"It is in justice that ordering of society is centered. The justice system in many ways is the bedrock of a democratic society since it upholds the rule of law, which is the fundamental feature of a true democracy. Our laws have to be sensitive to the changes in social structure and social philosophy, a reflection of contemporary social consciousness and a mirror of our values as a civilization. Thus, non-accessibility of justice results in the erosion of rule of law as well as police credibility†. For Aristotle, justice means giving people what they deserve, giving each person his or her due. It involves two factors: â€Å"things, and the persons to whom things are assigned†. 9 As far as the implementation of the judgment is concerned, the court stressed the need for a buffer body between the police and the politicians, which will accord functional autonomy to the police even as they are supervised by the political executive. As a result the relationship between the police and politician will loose its present character of unfettered discretion and illegitimate interference.The non-seriousness in the approach of the state governments in abiding with the directives issued by the Supreme Court, destroy the very basis of a judicial mechanism. The purpose of the judgment was to provide a professional and a wellequipped police system, which can efficiently manage the democratic society. The lack of political will in implementing this reform is symptomatic of a larger malice in the system, whereby the politician is reluctant to let go off his control over the police and law enforcement agencies.The alacrity with which thousands of northeast Indians fled Maharashtra and Karnataka recently has once again underscored the complete lack of the faith of the common man in the law and order machinery. It is yet another reminder that more than anything else a multi cultural and multi ethnic society like India needs an a political, professional police force and an efficient judicial system that will serve the rule of law without fear or favour. It is absence of such a vital mechanism that is at the heart of the unchecked crimes, poor conviction rate and the general lack of faith in the law and order system that we see in India today.The police force is highly politicised and corrupt and more than anything else, it is the absence of strict enforcement of law and swift justice that is at the heart of the breakdown that we face today. Aristotle’s concept of a go od civil society where he talks about the law of the polis inculcating good habits and thus forming a good character sets us on the way to civic virtue. This virtue can be achieved with the implementation of the police reforms in the society. 8 9 Supra, note 3. Supra, note 1. 7 8 The quality of the justice system in the country, to a larger extent depends upon the working of a police force.Thus, having regard to larger public interest, it is absolutely necessary to issue the requisite directions. 8 Bibliography 9 ? Aristotle, Nicomachean ethics. Indianapolis: Bobbs-Merrill, 1962 ? Who deserves what? , from Michael Sandel’s Theory of Justice ? Morris, T. , (1998), If Aristotle ran General Motors: the new soul of business. New York: Henry Holt and Company, LLC. ? Richard Kraut, Aristotle: political philosophy, Oxford University press, 2002 ? Aristotle (384-322 BC): The Polis. Hammondsworth, 1991, Penguin 9

“Ocean Carriers” Case Essay

Assume that Ocean Carriers uses a 9% discount rate. 1) Do you expect daily spot hire rates to increase or decrease next year? (5 points) 2) What factors drive daily hire rates? (5 points) 3) How would you characterize the long-term prospects of the capesize dry bulk industry? (10 points) 4) Should Ms Linn purchase the $39M capsize? Make 2 different assumptions. First, assume that Ocean Carriers is a US firm subject to 35% taxation. Second, assume that Ocean Carriers is located in Hong Kong, where owners of Hong Kong ships are not required to pay any tax on profits made overseas and are also exempted from paying any tax on profit made on cargo uplifted from Hong Kong. (75 points) 5) What do you think of the company’s policy of not operating ships over 15 years old? (5 points) Solutions: 1) Daily spot hire rates should be determined by supply and demand. Supply: The number of ships available equaled the number of vessels in service the previous year plus any new ships delivered minus any scrappings and sinkings. Demand: The demand for dry bulk capesizes was determined by the world economy, especially its basic industries. As shown in Exhibit 5, since over 85% of the cargo carried by capesizes was iron ore and coal, the amount of iron ore vessel shipments approximately reflects the demand for dry bulk capesizes. The amount of fleet size reflects the supply of capesizes. As shown in Exhibit 3, the number of new ships delivered in 2001 is 63. Since there had been very few scrappings in recent years, and most of the capacity of the worldwide fleet of capesizes was fairly young, we can assume that the change of fleet size during 2001 mainly comes from these new ships.  Similarly, we can expect the fleet size in 2002 will be: 612+(612-552)*(33/63) ≈ 643 From Exhibit 6, according to the forecast of the consulting group, iron ore vessel shipments will be 445 millions of tons in 2002. We can compute the growth rates of supply and demand in 2002. We can see from the table above that the supply will grow faster than the demand, so I expect daily spot hire rate to decrease next year. This can also be explained according to the Linn’s analysis. With Australian production in iron ore expected to be strong and Indian iron ore exports expected to take off in the next few years, Linn took an optimistic view of the long-term market demand for capesizes. However, she also considered that imports of iron ore and coal would probably remain stagnant over the next two years while supply increases. We can reasonably anticipate that spot rates would fall in 2001 and 2002. 2) As mentioned in 1), daily spot hire rates are determined by supply and demand. Demand: As illustrated in the case, the demand for dry bulk capesizes was determined by the world economy, especially its basic industries. Over 85% of the cargo carried by capesizes was iron ore and coal. Production and demand for these products increased in a strong economy. Changes in trade patterns also affected the demand for capesizes. Supply: The number of ships available equaled the number of vessels in service the previous year plus any new ships delivered minus any scrappings and sinkings. Ocean carriers decided to deliver new ships or scrap old ships mainly based on the demand. Supply was also affected by the increases in size and efficiency the newer ships offered. Moreover, ages of ships affected the company’s scrap decisions and older ships receiver lower daily hire rates. In summary, the world economy, changes in trade patterns, the increases in size and efficiency of new ships (technology) and ages of  ships drive daily hire rates. 3) As illustrated in the case, with Australian production in iron ore expected to be strong and Indian iron ore exports expected to take off in the next few years, Linn took an optimistic view of the long-term market demand for capesizes. Linn expected that Australian and Indian ore exports would begin in 2003, and that new supplies would significantly increase trading volumes. Demand for capesizes would likely increase with these higher trading volumes, possibly boosting prices. From the table above, we can find that worldwide iron ore vessel shipments and charter rates had been very strongly associated historically. Iron ore vessel shipments and daily hire rate changed in the same direction. Moreover, 3-yr charter rates changed much more than iron ore vessel shipments, while spot rates tended to fluctuate more widely than 3-yr charter rates. As mentioned above, Australian production in iron ore expected to be strong and Indian iron ore exports expected to take off in the next few years. I expect worldwide iron ore vessel shipments to increase stably in the long run, which would have a positive effect on daily hire rates. In terms of supply, the number of ships available equaled the number of vessels in service the previous year plus any new ships delivered minus any scrappings and sinkings. As shown in Exhibit 2, most of the capacity of the worldwide fleet of capesizes was fairly young, there would be very few scrappings in next years. As shown in Exhibit 3, numbers of new ships delivered experienced a downward trend, which means the supply would  increase more slowly in the long run. As a result, daily hire rates would be expected to rise in the long run. I take an optimistic view of the long-term prospects of the capesize dry bulk industry. 4) According to the information in the case, we can get the following table: Operating days: Initially, 8 days a year were scheduled for maintenance and repairs. The time allotted to maintenance and repairs increased to 12 days per year after five years of operation, and to 16 days a year for ships older than ten years. Daily operating costs: For a new ship coming on line in early 2003, operating costs were expected to initially average $4,000 per day, and to increase annually at a rate of 1% above inflation. The expected rate of inflation was 3%. Expenditures for special surveys: Capital expenditures anticipated in preparation for the special surveys would each be depreciated on a straight-line basis over a 5-year period. Depreciation: The ship would cost $39 million, and the value would be depreciated on a straight-line basis over 25 years. Moreover, the ship would cost $39 million, with 10% of the purchase price payable immediately and 10% due in a year’s time. The balance would be due on delivery. In addition, Linn expected to make a $500,000 initial investment in net working capital, which she anticipated would grow with inflation. Capital expenditures for special surveys would occur in 2007 and 2012. The company estimated the scrap value to be $5M at the end of the fifteenth year. We have to consider tax loss when the ship is sold since the ship has a book value of 15,600,000. Tax loss =(15,600,000-5,000,000)*35%=3,710,000. We can calculate total cash flows as follows: Assume that Ocean Carriers uses a 9% discount rate, NPV is negative. So Ms Linn should not purchase the $39M capsize. b) Assume Ocean Carriers is located in Hong Kong, we can calculate total cash flows as follows: Assume that Ocean Carriers uses a 9% discount rate, NPV is positive. So Ms Linn should purchase the $39M capsize. 5) I think it is a good policy to sell the vessel into the secondhand market, or â€Å"scrap† the vessel just before the third special survey. By carrying out this policy, the company could avoid heavy capital expenditures of the third, fourth and fifth surveys. At the same time, the company could benefit from the scrap value of $5M. In addition, the company could charge higher daily hire rates because vessels are comparatively younger. So I think the company’s policy of not operating ships over 15 years old is good.