Real Estate Investment Trusts in China

Real Estate Investment Trusts in China Real Estate Investment Trusts in China: how can we learn form American model to develop our REITs system? Ouyang Chun Abstract The real estate market is a burgeon market and is an essential part in the Chinese economy. During the past decades, the government made all their efforts to boost its development by using foreign countries experience. Real Estate Investment Trusts (REITs) model is new method to finance for city development. Since 2007, Chinese government began to test whether this model is suitable for China. The paper addresses the situation of Chinese REITs and the factors influencing REITs operating in China. Using the American REITs model for reference, the paper also discusses how to solve this problems and how to implement REITs model in China. I. Introduction The real estate market is booming in these years, particularly in China. The demand of finance as well as the housing supply makes China searching for other more efficient financing methods to meet the increasing requirements. Recently, with the releasing of the law restrictions and the reform and opening-up, more and more diversified investment methods are being tested in China. The Chinese government is now trying to find a new financing method by learning from foreign experience and integrating it with the Chinese situation. The REITs is considered to be one of the most efficient and suitable investment tools in China. REITs first appeared in the USA in 1960s. With over 40 years of development, REITs was successful in America because of complete laws and professional evaluation agencies. REITs developed rapidly in both their size and numbers since 1990 in America (Chan et al., 2002), and now it is a very mature investment model in the USA, benefiting the individual investors by running properties under the professional institutions. A REIT is a mutual fund to collect money from both individuals and institutional investors, with the exemption of the taxation, investing to different categories of real estate projects in different regions indirectly, and it is also can be traded on the stock markets (Jones. C, 2007). According to the Baker Review (Baker, 2003), the institutional investors prefer to use REITs, which is a tax transparent investment tool, to stimulate and to improve the rent stock as well as to stabilize the market. This tax transparent feature means that there is no need to pay double tax on REITs. Since 2007, the Chinese government established some test spots by choosing several potential projects, examining the feasibility of REITs in China. However, almost all the tests failed by various factors. The purpose of this paper is to discuss the factors influencing the REITs adapted to the Chinese market. The paper also examines the experience from the USA, which has the most mature REITs model in the world, and contrasts with the Chinese REITs model. As part of the task, the paper addresses the countermeasures for the factors influencing REITs feasibility in China by giving the law supports, improving the REITs models and establishing the professional evaluation system. The paper first examines the definition and the properties of REITs and then addresses the current situation of REITs operation in China. It then considers the factors which influences why REITs did not particularly adapt to China before. The paper then introduces the experience of REITs in America and also the reasons making REITs successful in the USA. The final part of the paper considers the countermeasures for making REITs adapt to China in the future and draws some conclusions. II. The current situation of REITs in China In this section, the paper will first address the potential of REITs in China, giving some reasons why REITs is considered to be the most suitable financial tool in China. The paper will then examine the reasons influencing REITs developed in China since 2007. A. The potential of REITs in China The National Association gave the definition of the Real Estate Investment Trusts as followed (NAREIT): â€Å"[a] REIT is essentially a corporation or business trust that combines the capital of many investors to acquire or provide financing for all forms of real estate. The aim of REITs is to invest to the real estate market and to receive the returns, it just like the stock shares held by the investors, which creates the possibility to indirectly invest to the market with professional management. REITs is suitable for China because of its features, the liquidity, the diversification of risk and the available capital. The Liquidity of REITs is that it can be traded on the open markets just like the stock shares, which means that the individuals or the institution can invest to the real estate market even though they are not the professionals in this area. It also gives them a chance to withdraw their asset quickly when the market is depressed instead of the long period of the direct investment (Eichholtz, 1996, Hoesli et al, 2000,Walpole, 1999). Eichholtz also pointed out that (Eichholtz, 1996) REITs can diversify the risk of the investment. The capital of the REITs will be divided into several parts to invest in different category of properties and in different regions. The development in China is unbalanced even in the metropolitans. Thereby, REITs will spread the risk efficiently for the investors and improve some undeveloped area where the direct investment did not participate in. REITs welcomes all kinds of investors including the retails and the institutions. Because it does not need too much assets to involve, REITs may collects enormous money and becomes a non-ignored capital in the market (Walpole, 1999). REITs can be cultivated stronger in China because of the massive of the retail investors, thereby, the available capital of REITs may become incredible huge and will benefit substantially for the Chinese real estate market. B. The reasons influencing of the Chinese REITs Since 2007, the Chinese government set up several test points to examine whether REITs adapted to China, however, almost all the projects failed, which exposed many factors influencing REITs operating in China. The supporting laws and policies is non-enough. The Chinese government published few supporting laws or policies for REITs. REITs returns are mostly attribute form the exemption of the tax, but there are still not any policies or laws published to exempt the taxes of REITs, which makes the incomes of REITs are very low. Thereby, the investors in China still wait and see to determinate whether invest to REITs market. The complicated properties of the projects make the evaluation difficult. Due to the limited test spots, the competition in Chinese REITs was very sharp since 2007, more and more conglomerates joint or had a will to join at that time, the projects they brought to the test spots is significantly huge for the Chinese REITs system. There was not enough preparations for such big properties in this market, such as the laws, the regulations as well as the evaluations systems, which is considered to be the most important part in REITs investment, did not prepare maturely at that time. Therefore, as the test began, the problems appeared gradually, the valuation of the properties was evaluated incorrectly or the values of the whole project were not easy to evaluate which caused the investor was not able to grasp the information precisely. The unclear ownership of the Property Portfolio reduced the value of the REITs. After the project started, this problem appeared significantly, a larger of buildings which were prepared to be the asset pack existed problems, the use or the property of lands are not correct or the approval process is not complete. Such buildings are not allowed to invest to the Chinese REITs market due to the laws. Thereby, these problems affected the evaluation of the asset directly and also affected launching the REITs definitely. The rental fee can not be collected efficiently. The Chinese government established some development areas in the past decades, in which the investor would be benefited when they established the projects by some policies. These policies exempted the rental fees from their buildings for a particularly period, which effected the operating of REITs dramatically, because the most important factor, the returns, was affected. A non-returnable property would not make and profits for the REITs products obviously and would confuse the investor on how they would get their incomes after they invested, therefore, it would not be approved by the market definitely. Although there were many defects in Chinese REITs, we could avoid these disadvantages by using other countries experience for reference. The American REITs model is one of the most mature models in the world. Their development history, their REITs structure as well as the reason of its success are worth us to reflect our REITs model. III. The REITs model in USA and the analysis of the reasons of the success of RIETs in America In this part, the paper will analyze the reason of the success in the American REITs. The paper will first give a brief history of the REITs in the USA and address its structure. After that, the paper will focus on analyzing the reasons promoting REITs market to boost and boom in recent years. A. A brief history of the REITs in America The modern pattern of the REITs appeared by the Wall Street in 1960s even though the idea of it can be dated back to 1880s. In 1960, in order to stimulate the depressed real estate market, the United State published the Real Estate Investment Trust Act, which gave the supporting law to the new invest model (Klame. P et al, 2001). This Act defined the regulation of REITs and also gave it the exemption from the federal taxation, which means there is no need to pay the double tax while using this investment tool (Klame. P et al, 2001). REITs did not make any significant achievements in the first decades, but grew dramatically from the 1990s, in which erupted a housing market collapse (Harvard University, 2003). Due to the low cost of management and the diversity of risk, more than 200 companies in America invested indirectly to the real estate market, the total assets exceed $ 12,000 billion until January 2000 ,and now, the American public real estate market is the biggest and most mature market in the world (Klame. P et al, 2001). B. The current situation of REITs in America The structure of REITs investors in America are divided into three parts, 55% in the domestic institutions, 25% by individuals and 7% by the foreign investors (Friday, 1999). REITs benefit all forms of the real estate projects, such as office buildings, shopping centers and private housing (Klame. P et al, 2001). The aim for the REITs was first defined for the retail investors, but attracted the institution investor since 2004, which increased the numbers of the trades as well as the liquidity of the REITs (Chan et al., 2002). Moreover, the REITs investors in America can obtain about 90% of the income of the REITs and do not need to pay any tax from their incomes, thereby making the benefits they receive higher than the stock markets (Klame. P et al, 2001). C. The reasons of the success of American REITs With almost 50 years development, REITs in the United Stated became the most mature one in the world. The reasons for that are varieties. The first reason is the government published a lot of supporting laws. With these Acts, REITs developed rapidly. The REITs did not make many achievements at the very beginning, but the American government made all their efforts to push this investment method to success. With the Tax Recovery Act in 1986, the REITs in the USA first grew tremendously after experiencing the bubbles and the depression in 1970s. This Act weakened the limited partnership by restricting their tax exemption and cancelling the accelerated depreciation accounting method of the real estate. The Act also loosened the access standard of the REITs, which made the REITs companies not only owned the real estate assets, but also could manage the properties. Moreover, most of the REITs added the low debt provision in their organizational files, which would absolutely reduce the risk in operation. These changes attracted the investor to join this boom market and promoted the development of REITs. At the end of 1999, the most important Act, REITs Modernization Act, passed and published in 2001. This Act reduced the distribution proportion to 90%, and stipulated the companies could dominate the profits freely after they pay the tax from their un-distributed incomes. Therefore, REITs could use this profit to maintain the existing properties, invested to new properties or pay the debt. As a result of that, this Act increased the investment chance and promoted the business performance. These Acts helped REITs to become more flexible, more focus in customer demands and a more profit-seeking institution. The supporting laws and policies are definitely important, however, REITs needs more supporting from the financial system, and the evaluation system is considered to be the most important systems in REITs development. The evaluation system in the U.S. is quite complete. With the experience of over 100 years financial operation, the Americans accumulated substantial finance evaluation experience. When REITs started, the evaluation of the REITs products were not difficult tasks to finish. Almost all the REITs projects had been evaluated correctly, which provided accuracy information to the investors. Due to the REITs market is not difficult to enroll, most of the investors, including individuals and institutions, could operate readily when they joined the market. That absolutely promoted the REITs boom in the United State during 1990s. In addition, REITs companies in America invest to specific objects. Compared with China, the U.S. REITs concentrated in existing real estate projects, which means the companies preferred to operate the buildings rather than to establish one. That would absolutely reduce the risk for REITs, which attracted a lot of investors. These three factors motioned above supported the REITs developed very fast since 1990s and make it becomes one of the most efficient and mature REITs model in the world. The Chinese REITs may probably enlighten form these experiences and avoid the problems by learning their developing history. IV. Countermeasures To establish a relatively complete environment for REITs investment, China would probably benefits from the American experience. The paper will provide some suggestions which might helpful for improve the REITs in China. A. Exemption of the double tax of REITs As Chinese REITs markets were mainly affected by the investment environment, especially the supporting laws, the Chinese government could refer to the American model to release the law restricting gradually. The most exigent problem which should be solved first is the taxes on the REITs products. The American experience exposed that the transparency feature of the tax is the most important factor promoting REITs market boost. Without the tax transparency, the returns of the REITs would be very low. The Chinese government should use this experience for reference, exempting the double tax on the REITs, stimulating the REITs markets by raising the returns. B. Introduction for the public Due to the returns of REITs are a little bit higher than the stock markets and the investment skill is fairly easy to grasp, both the individual and the institutional investors would be willing to invest to this market. However, the REITs market was not flourishing as the exception, that is mainly because most individuals in China did not understanding what was REITs and how many retunes they could received by the REITs, even the specialists would not invest lightly due to the unclear information of supporting policies of the REITs. If the government really want to boom the REITs market, they should focus on publicize the REITs products to the citizen and publish the very clear supporting policies or law to enhance the investors confidence. In order to extent to market of REITs, it should absorb both individual investors and institution investor to join. However, the Chinese government paid more attention on the institutions instead of considering the individuals, which cause the ins ufficient funds of the REITs markets. Obviously, the institution investors are quite cautious and would not invest their money to the uncertain finance products such as REITs, which would directly lead the depression of the REITs markets and also caused a vicious circle : no investors, no money and no money, REITs market would not attract investors. To change this situation, money from individual investors is necessary because the asset from individuals is fairly huge in China. The government should use this kind of power, just like the U.S. model, to support the unstable REITs market at its very beginning. Using the bank sell model, which is just like the fund sell model in China, and minimizing the unit of REITs just like the American to create the chance for individuals to enroll. C. The clear investment aim The investment object is another severe problem in Chinese REITs model, REITs companies in China used to prefer invest to the big projects. Because the limitation of the test spots, the opportunities are very competitive. Most of the companies used their best properties to join this market, these properties are so huge that could not be evaluated very clearly before they used them to invest. Therefore, due to the unclearly evaluation of these properties, the information for the investors are ambitious, which would definitely cause severe problem in them investment decision-making. Moreover, REITs in China is a relative new investment methods for both individual investors and institutional investors, with the unclear information, investors therefore would not have a willing to buy this kind of finance products, they might consider that REITs is a very risky products for them to invest. That is also a reason why investors enthusiasm for this investment tool is not very high as the expe ctation. However, the situation in America is complete change. At the very beginning, REITs was considered to be a quite popular invest method, the reason for its depression is the only the double tax. Thereby, when the government released the tax and published some supporting laws to regular REITs, its market grew suddenly. That is because almost all the properties, which are provided by the REITs companies in America, were not very huge at the very beginning and were evaluated clearly before they came into the markets. Even some properties are relatively big, having been given exhaustive information for the investors. Therefore, investor could easily invest to these products with this information and would approximately calculate the incomes they would return. Such experience should be used in Chinese REITs market, establishing the professional evaluation agencies to provide the official evaluation reports to the investors, making sure the information they received is true and int act. That might greatly stimulate the investors confidence and give them a positive signal that the REITs is a fairly formal investment tools for them to choose. V. Conclusions The Chinese real estate market is booming these years, but it is by no means that all of the foreign finance methods suitable for China. When we want to use some advance experience to the Chinese market, we should consider it very clearly, not only learn the structure of concept of the new method, but also we may need to figure out the essential of it and in what situation we will use it. According to the REITs, we may understand that even its concept is fairly suitable for Chinese situation, the operation details is also quite difficult to follow. It might need several years to establish our own REITs market and to publicize it to the whole citizen. That is not the task which only to publish some REITs products, it is also a task to build a whole REITs system, including the supporting policies or laws, complete the evaluation system and extending the REITs spots. All of them need time to finish. Therefore, we could not run it so fast but to make sure every step is moderate and effic ient. In this circumstance, we may probably find some new problems and new chance for us to develop our REITs, and also we might discover some new ideas or methods to make the REITs more efficient and more suitable for China. References Barker, K. (2003) Review of Housing Supply: Interim Report-Analysis (London: HMSO). Chan, S. H., Erickson, J. Wang, K. (2002) Real Estate Investment Trusts Structure, Performance, and Investment Opportunities (Oxford: Oxford University Press). Eichholtz, P.M.A., â€Å"Does International Diversification Work Better for Real Estate than for Stocks and Bonds?, Financial Analysis Journal, January-February, 1996, pp. 56-62. Friday, H.S., G.S. Sirmans, and C.M. Conover, â€Å"Ownership Structure and the Value of the Firm: The Case of REITs, Journal of Real Estate Research, 1999, vol. 17, no. 1/2. Harvard University (2003) The State of the Nations Housing 2002 (Massachusetts,

The Institute For Pak Afghan Relations Politics Essay

The Institute For Pak Afghan Relations Politics Essay Pakistans interaction with Afghanistan has been influenced and fashioned by the historical legacy of pre-1947 Afghan-British Indian relations. This legacy laid the basis for the development of an acrimonious bilateral relationship between the two states after 1947, which was complicated by the Cold War power politics. The nineteenth century geo-strategic rivalry between the Great Britain and Tsarist Russia (the so-called Great Game) on the Afghan chessboard created an environment of mistrust and suspicion against foreign powers in the eyes of the Afghans. The relations were further aggravated by the three Anglo-Afghan wars (1838-1842; 1879-1880; 1919-1920). The unsettled borders in the northwest of British India, where the writ of the British government was not fully enforceable, gave Afghanistan an opportunity to create security problems in the days of British Raj and more so after their departure from the subcontinent. Pakistan, therefore, inherited an unfriendly neighbor on its we stern border, making it difficult to formulate a policy of having friendly ties with Afghanistan. Its security threat perception as being sandwiched between a hostile India in the east and an irredentist Afghanistan in the west compelled Pakistan to seek a friendly regime in Kabul. Afghanistans territorial claims on the Pashtu-speaking areas of Pakistan coupled with the pro-Indian posture of its ruling elites further reinforced Pakistans strategic belief that a hostile Afghanistan ill served Pakistans security needs. The logical corollary of this threat perception was that, regardless of its costs and difficulties, Pakistan had to pursue a sub-imperial engagements in Afghanistan to secure a client regime, which would not only give it a strategic depth against India but would also help stabilize its volatile western border. The Soviet invasion of Afghanistan forced Pakistan to wage, with the support of western and Arab allies, a proxy war in Afghanistan and ultimately forced Soviets to withdraw from Afghanistan. Since the end of the Cold War, Pakistan continued its forward policy in Afghanistan mainly through the support of the Hizb-i-Islami of Gulbadin Hikmatyar and, later, through the Taliban. Following the events of Sep.11, 2001 the political landscape of South Asia transformed dramatically. The September 11 incident provided Pakistan with an opportunity to reconsider its Afghan policy and regain its lost status in the international community. Pakistan took a U-turn in its Afghan policy and became a front line state in the US war against terrorism and helped topple its erstwhile Taliban allies from power. Though this course of action helped Pakistan get out of regional as well as international isolation, its long involvement with the Afghan groups locked in internal struggle for power has left it with fewer friends and more enemies in Afghanistan, particularly among the literate urban middle class and non-Pashtuns. Its relations with Afghanistan continue to be bedeviled with skepticism and fear, even as both countries are cautiously revitalizing bilateral relations. Though the historical, geographical, cultural, religious, ethnic, security and economic affinities and interdependence between Pakistan and Afghanistan are bound to play their role in strengthening the relations between the two countries, there are certain stumbling blocs in Pak-Afghan relations like Pak-Afghan border issue, the Pashtunistan issue, Afghanistans skepticism on Pakistans resolve to fight war on terrorism; and Pakistans strong reservations over Indian anti-Pakistan activities from Afghanistan. For improving the relations both Pakistan and Afghanistan need to allay their mutual misperceptions and distrust. The ongoing blame game by the two countries led an Afghan expert to write, Owing to increasing Taliban insurgency in Afghanistan, one cannot hope for any improvement in the security situation in the war-ravaged country. The embattled Afghan government is expected to become even more critical of Pakistan in future on account of the increase in Taliban attacks. Pakistan is likely to reply in the same currency, and there are already signs that its tone in denying accusations of support for Taliban is becoming aggressive. The fireworks will continue, and it would be futile to expect any major improvement in their uneasy political and diplomatic ties in the near future. It is in this context that we felt the need to establish a research organization that will identify examine and analyze the factors that continues to adversely affect relations between the countries that have so many overlapping layers of common history, culture, religion, geography and security. We believe that if both the countries were able to allay their mutual misperceptions, distrust, and suspicions the relations between the two are bound to improve. The relationship between Afghanistan and Pakistan are symbiotic in nature. When Afghanistan pains, Pakistan bleeds and vice versa. Both are destined to sink or sail together and now time has come for them to think conjointly to find ways and means for putting an end to recurring power vacuums in this region, which frequently sucks in external state actors. About IPAR IPAR provides the analysis, training and tools that prevent and end regional conflicts, promotes stability and professionalizes the field of regional peace building. It is essential that the Pakistan Afghanistan, adopt a regional approach to find out solution to their existing problems and play an active part in preventing, managing, and resolving regional conflicts to achieve a lasting peace and stability on both sides of the Durand line. Mission Statement The Institute of Pak-Afghan Relations is an independent, nonpartisan, non-governmental, progressive think tank working for comprehensive cooperation between Afghanistan and Pakistan, which would provide a solid basis for multi-disciplinary cooperation. The IPAR emphasizes the vital importance of brotherly relations in pursuance of policies of mutual respect, non-interference and peaceful coexistence and recommends further expansion of economic, social, and cultural relations between the two countries. Its goals are to help: Prevent and resolve regional conflicts Promote post-conflict stability and development Increase conflict management capacity, tools, and intellectual capital by empowering others with knowledge, skills, and resources. Aims and Objectives Emphasizing the deep historic, religious, spiritual, cultural and commercial bonds among Afghanistan and Pakistan, IPAR focuses especially on the treatment of terrorism, extremism and militancy, bilateral cooperation in political and economic fields, and regional and international issues of common concern. The institute will work for the following objectives: Improving bilateral relation between Pakistan and Afghanistan culminating into a perennial strategic partnership carried forth to coming generations; Supporting programs that foster independent research, enabling our scholars to produce articles, reports, and books and hold roundtables that analyze Pak afghan foreign policy issues and to make concrete policy recommendations; Sponsoring Independent Task Forces to produce reports with both findings and policy prescriptions on the most important foreign policy issues; and Providing up-to-date information and analysis on Pak-Afghan relations; Programs and Activities In order to achieve the above goals, the Institute undertakes a unique combination of activities, including the following: Performing cutting edge research, to produce  publications  for practitioners, policymakers, and academia. Building mutual trust and confidence by Parliamentary exchanges complement political-level interaction and promoting people-to-people contacts including the exchange visits of journalists, poets, writers, musicians and artistes. Educating students  about conflict, organizing study tours, and increasing the peace building capabilities of future leaders. Supporting policymakers  by providing analyses, policy options, and advice, as well as by sponsoring a wide range of region-oriented working groups. Expertise The Institute draws on a variety of resources in fulfilling its mandate, including Institute staff, grantees, fellows, and a broad set of governmental and non-governmental partners: Institute Specialists: The Institute employs specialists with both geographic and subject-matter expertise. These experts are leaders in their fields. They come from the government, military, NGOs, academia, and the private sector. Partners/Grantees: The Institute works with an extensive network of partners, including non-profits, academic institutions, government agencies, international organizations, and the military. Publication IPAR approach is grounded in field of research. Our surveys and policy analyses are informed by the work of a team of researchers, reporters and political analysts located in different areas of Pak-Afghan region. Based on information and assessments from the field, the institute produces analytical reports, weekly updates and policy briefings containing practical recommendations targeted at key national and international decision-makers. We also publish survey-based reports, research journal and books, providing in-depth analysis of various issues.

Black Friday: Tornado In Canada :: essays research papers

Black Friday: Tornado in Canada "The roof was caving in and I thought I was going to die. It was like your worst nightmare!" said Mary Grandish. Most people think they will die when they see,or hear of a tornado heading their way. Although all the details of the formation of a tornado are not yet understood, it is known that tornados are the result of great instability in the atmosphere and often appear during severe thunderstorms (see appendix #1 for a scientific explaination on how it really starts). Strong updrafts present in severe thunderstorms result in a rotational momentum. Falling rain and/or snow probably drags air from aloft when it comes falling down. The combination of severe thunderstorms and sweltering heat are the breeding grounds for a tornados' formation. The first sign of a tornado is a strong dust whirlwind along with a funnel growing from the storm cloud. A more organized funnel descends farther from the cloud, sometimes even touching the ground. Funnel winds generally move counterclockwise and the funnel can move slowly or at about 100/ft per second. Eventually the tornado becomes fragmented and dissipates causing the end of the tornado. Tornados are the cause of great destruction and devistation in the area in which they occur. For example the Tri-State Tornado of 1925 occured in the Kansas, Oklahoma, and Texas States. This tornado was one of the largest tornados recorded in history. It killed nearly 625 people. However, the tornado which strikes closest to home has occured on what Canadians have come to know as "BLACK FRIDAY". The tornado of "Black Friday" touched down on July 31st, 1987 at 2:59 pm. (See appendix #2 for the torndo path). (See appendix #'s 4&5 for maps locating the disaster sights). 27 people were killed; 25 people died during the tornado and 2 died later in the hospital. Hundreds of other people were injured and thousands were left homeless. Edmontonians faced a horrible natural phenomenon which destroyed homes, farms, and businesses. (See appendix #3 for a picture of what it looked like after the tornado struck up the street). More than 25 auto dealers faced a loss of more than $100,000 worth of cars, which were struck by hail measurihg at up to 10 inches in circumference. Not only were auto dealers' cars affected, but many other privately owned cars were damaged to varying degrees. The Kennedale storm sewer overloaded and outfall collapsed, which caused many people to call in complaining of flooded basements. Damage estimites were listed at between $150-$300 million dollars. $20 million dollars damage was done to Evergreen Mobile Home Trailer Park; $50-$70 million dollars

Divorce and the Bible Essay -- essays research papers

The law defines divorce as  ¡Ã‚ §a legal dissolution of the marriage contract by a court or other body having competent authority. This is properly a divorce, and called, technically, divorce a vinculo matrimonii. ``from the bond of matrimony.'' (b) The separation of a married woman from the bed and board of her husband -- divorce a mensa et toro (or thoro), ``from bed board.'' ¡Ã‚ ¨ Does this definition follow that of the Bible? Mark 10:1-12 ¡X  ¡Ã‚ ¥Jesus then left that place and went into the region of Judea and across the Jordan. Again crowds of people came to him, and as was his custom, he taught them. Some Pharisees came and tested him by asking,  ¡Ã‚ §Is it lawful for a man to divorce his wife? ¡Ã‚ ¨  ¡Ã‚ §What did Moses command you? ¡Ã‚ ¨ He replied. They said,  ¡Ã‚ §Moses permitted a man to write a certificate of divorce and send her away. ¡Ã‚ ¨  ¡Ã‚ §It was because your hearts were hard that Moses wrote you this law, ¡Ã‚ ¨ Jesus replied.  ¡Ã‚ §But at the beginning of creation God made them male and female. For this reason a man will leave his father and mother and be united to his wife, and the two will become one flesh. So they are no longer two, but one. Therefore what God has joined together, let man not separate. ¡Ã‚ ¨ When they were in the house again, the disciples asked Jesus about this. He answered,  ¡Ã‚ §Anyone who divorces his wife and marries another woman commits adultery against her. And if she divorces her husband and marries another man, she commits adultery. ¡Ã‚ ¦ According to Mark, Jesus was not only against divorce but he detested the actions of man to allow it against the word of God. He is trying to explain what divorce means to God. Apparently, it is the joining of two people ¡Xminds, bodies, and souls. These people are no longer people. They are a person. He also states that Moses only made the law to solve the problems that humankind was having. It seems that Moses was without patience when making his declaration. The crowd was already going against God, and their religion had taken a step down their priority list. Moses was just giving his people what they wanted to hear. He only allowed the man to give a statement of divorce. He allowed them to take from that what they did. He was still serving his religion with this decision. He was not allowing them to separate their souls. I believe Jesus was only reiterating, or clarifying, this act of Moses. He explained to the masses that Mose... ...owever, in this case, the union of souls is not stressed. How can an unbeliever expect the God that they do not believe in to unite them? Once the unbeliever is saved, the souls will be united and a divorce is not allowed.   Ã‚  Ã‚  Ã‚  Ã‚  However, if the unbeliever never does accept God, then the he/she is permitted to cut off the marriage. A believer is to stand by the side of his beloved. He/she is held to all the rules of marriage and divorce. This, of course, meaning that the believer calling for divorce does not separate the couple in God ¡Ã‚ ¦s eyes. If the unbeliever calls for a divorce, then it is as if the marriage never took place. They are free to remarry.   Ã‚  Ã‚  Ã‚  Ã‚  Most of these authors hold the same views. Divorce is an accepted thing before man, but not before God. Then, divorce only means that you are allowed to live in separate homes. As far as remarriage goes, it is adultery on the behalf of all involved. The exception from this rule is only applicable if one of the marriage partners is an unbeliever and, as such, calls for the divorce. Then the divorce is a complete divorce and remarriage is allowed without being considered adultery.

Vioxx and Merck & Co. Essay -- essays research papers

Vioxx/Merck Summary The painkiller Vioxx was introduced in 1999 by Merck & Co. It has been used by over 20 million Americans since it was put on the market. Vioxx remained on the market for approximately five years without adequate warnings about its risks. In September of 2004, Merck took Vioxx off the market after a study revealed that it doubled the risk of heart attack or stroke for patients that used it for more than 18 months. Although Merck claimed that they had no idea of these possibly lethal side effects, some internal documents imply that they had been aware of the problem for years and had not made moves to change it. Over 300 lawsuits have been filed against Merck, and it is expected that thousands more will arise.   Ã‚  Ã‚  Ã‚  Ã‚  Further studies were conducted on the drug, but Merck adamantly fought Vioxx findings. Even thou Merck funded and agreed with the design of the study, it publicly discredited its findings. Other reports showed that in older patients, Vioxx made no provide as much protection as it is expected to. One study links Vioxx to 88,000 to140,000 cases of heart disease. Most of this information had been kept private for quite a long time.   Ã‚  Ã‚  Ã‚  Ã‚  Despite the obvious health risks, in February of 2005, government advisers concluded that the benefits of Vioxx outweighed the dangers and that it was the patients decision whether or not to keep using the drugs. They stated that the prescription products should ... Vioxx and Merck & Co. Essay -- essays research papers Vioxx/Merck Summary The painkiller Vioxx was introduced in 1999 by Merck & Co. It has been used by over 20 million Americans since it was put on the market. Vioxx remained on the market for approximately five years without adequate warnings about its risks. In September of 2004, Merck took Vioxx off the market after a study revealed that it doubled the risk of heart attack or stroke for patients that used it for more than 18 months. Although Merck claimed that they had no idea of these possibly lethal side effects, some internal documents imply that they had been aware of the problem for years and had not made moves to change it. Over 300 lawsuits have been filed against Merck, and it is expected that thousands more will arise.   Ã‚  Ã‚  Ã‚  Ã‚  Further studies were conducted on the drug, but Merck adamantly fought Vioxx findings. Even thou Merck funded and agreed with the design of the study, it publicly discredited its findings. Other reports showed that in older patients, Vioxx made no provide as much protection as it is expected to. One study links Vioxx to 88,000 to140,000 cases of heart disease. Most of this information had been kept private for quite a long time.   Ã‚  Ã‚  Ã‚  Ã‚  Despite the obvious health risks, in February of 2005, government advisers concluded that the benefits of Vioxx outweighed the dangers and that it was the patients decision whether or not to keep using the drugs. They stated that the prescription products should ...

The Vampire Diaries: The Struggle Chapter Nine

â€Å"I know I'm going to be sorry I asked this,† Matt said, turning red-rimmed eyes from their contemplation of I-95 to Stefan in the passenger seat beside him. â€Å"But can you tell mewhy we want these extra-special, not-available-locally, semi-tropical weeds for Elena?† Stefan looked into the back seat at the results of their search through hedgerows and rough grass. The plants, with their branching green stems and their small-toothed leaves, did look more like weeds than anything else. The dried remains of blossoms at the ends of the shoots were almost invisible, and no one could pretend the shoots themselves were decorative. â€Å"What if I said they could be used to make an all-natural eyewash?† he offered, after a moment's thought. â€Å"Or an herbal tea?† â€Å"Why? Were you thinking of saying something like that?† â€Å"Good. Because if you did I'd probably deck you.† Without actually looking at Matt, Stefan smiled. There was something new stirring inside him, something he hadn't felt for nearly five centuries, except with Elena. Acceptance. Warmth and friendship shared with a fellow being, who did not know the truth about him, but who trusted him anyway. Who was willing to take him on faith. He wasn't sure he deserved it, but he couldn't deny what it meant to him. It almost made him feel†¦ human again. Elena stared at her image in the mirror. It hadn't been a dream. Not entirely. The wounds in her neck proved that. And now that she'd seen them, she noticed the feeling of light-headedness, of lethargy. It was her own fault. She'd taken so much trouble to warn Bonnie and Meredith not to invite any strangers into their houses. And all the time she'd forgotten that she herself had invited Damon into Bonnie's house. She'd done it that night she had set up the dumb supper in Bonnie's dining room and called out into the darkness, â€Å"Come in.† And the invitation was good forever. He could return any time he liked, even now. Especially now, while she was weak and might easily be hypnotized into unlocking a window again. Elena stumbled out of the bathroom, past Bonnie, and into the guest bedroom. She grabbed her tote bag and began stuffing things into it. â€Å"Elena, you can't go home!† â€Å"I can't stay here,† Elena said. She looked around for her shoes, spotted them by the bed, and started forward. Then she stopped, with a strangled sound. Lying on the dainty crumpled linen of the bed there was a single black feather. It was huge, horribly huge and real and solid, with a thick, waxy-looking shaft. It looked almost obscene resting there on the white percale sheets. Nausea swept over Elena, and she turned away. She couldn't breathe. â€Å"Okay, okay,† Bonnie said. â€Å"If you feel that way about it, I'll get Dad to take you home.† â€Å"You have to come, too.† It had just dawned on Elena that Bonnie was no safer in this house than she was. Youand your loved ones , she remembered, and turned to grasp Bonnie's arm. â€Å"Youhave to, Bonnie. I need you with me.† And at last she got her way. The McCulloughs thought she was hysterical, that she was overreacting, possibly that she was having a nervous breakdown. But finally they gave in. Mr. McCullough drove her and Bonnie to the Gilbert house, where, feeling like burglars, they unlocked the door and crept inside without waking anyone up. Even here, Elena couldn't sleep. She lay beside Bonnie's softly breathing form, staring toward her bedroom window, watching. Outside, the quince branches squeaked against the glass, but nothing else moved until dawn. â€Å"Stefan!† She had never been so glad to see anyone in her life. She flung herself upon him before he could even shut the car door. He swayed backward with the force of her impact, and she could feel his surprise. She wasn't usually so demonstrative in public. â€Å"Hey,† he said, returning the hug gently. â€Å"Me, too, but don't crush the flowers.† â€Å"Flowers?† She pulled back to look at what he was carrying; then, she looked at his face. Then at Matt, who was emerging from the other side of the car. Stefan's face was pale and drawn; Matt's was puffy with tiredness, with bloodshot eyes. â€Å"You'd better come inside,† she said at last, bewildered. â€Å"You both look awful.† â€Å"It's vervain,† said Stefan, some time later. He and Elena were sitting at the kitchen table. Through the open doorway, Matt could be seen stretched out on the family room sofa, snoring gently. He'd flopped there after eating three bowls of cereal. Aunt Judith, Bonnie, and Margaret were still upstairs asleep, but Stefan kept his voice low just the same. â€Å"You remember what I told you about it?† he said. â€Å"You said it helps keep your mind clear even when someone is using Power to influence it.† Elena was proud of how steady her voice was. â€Å"Right. And that's one of the things Damon might try. He can use the power of his mind even from a distance, and he can do it whether you're awake or asleep.† Tears filled Elena's eyes, and she looked down to hide them, gazing at the long slender stems with the dried remains of tiny lilac flowers at the very tips. â€Å"Asleep?† she said, afraid that this time her voice was not as steady. â€Å"Yes. He could influence you to come out of the house, say, or to let him in. But the vervain should prevent that.† Stefan sounded tired, but satisfied with himself. Oh, Stefan, if you only knew, Elena thought. The gift had come one night too late. In spite of all her efforts, a tear fell, dripping onto the long green leaves. â€Å"Elena!† He sounded startled. â€Å"What is it? Tell me.† He was trying to look into her face, but she bowed her head, pressing it into his shoulder. He put his arms around her, not trying to force her up again. â€Å"Tell me,† he repeated softly. This was the moment. If she was ever going to tell him, it should be now. Her throat felt burned and swollen, and she wanted to let all the words inside pour out. But she couldn't. No matter what, I won't let them fight over me, she thought. â€Å"It's just that – I was worried about you,† she managed. â€Å"I didn't know where you'd gone, or when you were coming back.† â€Å"That's all.† Now she would have to swear Bonnie to secrecy about the crow. Why did one lie always lead to another? â€Å"What should we do with the vervain?† she asked, sitting back. â€Å"I'll show you tonight. Once I've extracted the oil from the seeds, you can rub it into your skin or add it to a bath. And you can make the dried leaves into a sachet and carry it with you or put it under your pillow at night.† â€Å"I'd better give them to Bonnie and Meredith, too. They'll need protection.† He nodded. â€Å"For now – † He broke off a sprig and placed it in her hand. † – just take this to school with you. I'm going back to the boarding house to extract the oil.† He paused a moment and then spoke. â€Å"Elena†¦Ã¢â‚¬  â€Å"Yes?† â€Å"If I thought it would do you any good, I'd leave. I wouldn't expose you to Damon. But I don't think he'd follow me if I went, not any more. I think he might stay – because of you.† â€Å"Don't eventhink about leaving,† she said fiercely, looking up at him. â€Å"Stefan, that's the one thing I couldn't stand. Promise you won't; promise me.† â€Å"I won't leave you alone with him,† Stefan said, which was not quite the same thing. But there was no point in pushing him further. Instead, she helped him wake up Matt, and saw them both off. Then, with a stem of dried vervain in her hand, she went upstairs to get ready for school. Bonnie yawned all the way through breakfast, and she didn't really wake up until they were outside, walking to school with a brisk breeze in their faces. It was going to be a cold day. â€Å"I had a very weird dream last night,† Bonnie said. Elena's heart jumped. She'd already tucked a sprig of vervain into Bonnie's backpack, down at the bottom, where Bonnie wouldn't see it. But if Damon had gotten to Bonnie last night†¦ â€Å"What about?† she said, bracing herself. â€Å"About you. I saw you standing under a tree and the wind was blowing. For some reason, I was afraid of you, and I didn't want to go any closer. You looked†¦ different. Very pale but almost glowing. And then a crow flew down from the tree, and you reached out and grabbed it in midair. You were so fast it was unbelievable. And then you looked over at me, with this expression. You were smiling, but it made me want to run. And then you twisted the crow's neck, and it was dead.† Elena had listened to this with growing horror. Now she said, â€Å"That's adisgusting dream.† â€Å"It is, isn't it?† said Bonnie composedly. â€Å"I wonder what it means? Crows are birds of ill omen in the legends. They can foretell a death.† â€Å"Yes,† Bonnie said. â€Å"Except for one thing. I had this dreambefore you woke us all up screaming.† That day at lunchtime there was another piece of violet paper on the office bulletin board. This one, though, read simply:LOOK IN PERSONALS. â€Å"What personals?† said Bonnie. Meredith, walking up at that moment with a copy of theWildcat Weekly , the school newspaper, provided the answer. â€Å"Have you seen this?† she said. It was in the personals section, completely anonymous, with neither salutation nor signature. Ican't bear the thought of losing him. But he's so very unhappy about something, and if he won't tell me what it is, if he won't trust me that much, I don't see any hope for us. Reading it, Elena felt a burst of new energy through her tiredness. Oh, God, she hated whoever was doing this. She imagined shooting them, stabbing them, watching them fall. And then, vividly, she imagined something else. Yanking back a fistful of the thief's hair and sinking her teeth into an unprotected throat. It was a strange, unsettling vision, but for a moment it almost seemed real. She became aware that Bonnie and Meredith were looking at her. â€Å"Well?† she said, feeling slightly uncomfortable. â€Å"I could tell you weren't listening,† sighed Bonnie. â€Å"I just said it still doesn't look like Da – like the killer's work to me. It doesn't seem like a murderer would be so petty.† â€Å"Much as I hate to agree with her, she's right,† Meredith said. â€Å"This smells like someone sneaky. Someone who has a grudge against you personally and who really wants to make you suffer.† Saliva had collected in Elena's mouth, and she swallowed. â€Å"Also somebody who's familiar with the school. They had to fill out a form for a personals message in one of the journalism classes,† she said. â€Å"And somebody who knew you kept a diary, assuming they stole it on purpose. Maybe they were in one of your classes that day you took it to school. Remember? When Mr. Tanner almost caught you,† Bonnie added. â€Å"Ms. Halperndid catch me; she even read some of it aloud, a bit about Stefan. That was right after Stefan and I got together. Wait a minute, Bonnie. That night at your house when the diary was stolen, how long were you two out of the living room?† â€Å"Just a few minutes. Yangtze had stopped barking, and I went to the door to let him in, and†¦Ã¢â‚¬  Bonnie pressed her lips together and shrugged. â€Å"So the thief had to be familiar with your house,† said Meredith swiftly, â€Å"or he or she wouldn't have been able to get in, get the diary, and get out again before we saw them. All right, then, we're looking for someone sneaky and cruel, probably in one of your classes, Elena, and most likely familiar with Bonnie's house. Someone who has a personal grudge and will stoop to anything to get you†¦ Oh, my God.† The three of them stared at one another. â€Å"We're so stupid; we should have seen it right away,† said Meredith. For Elena, it meant the sudden realization that all the anger she'd felt about this before was nothing to the anger she was capable of feeling. A candle flame to the sun. â€Å"Caroline,† she said, and clenched her teeth so hard her jaw hurt. Caroline. Elena actually felt she could kill the green-eyed girl right now. And she might have rushed out to try if Bonnie and Meredith hadn't stopped her. â€Å"After school,† said Meredith firmly, â€Å"when we can take her somewhere private. Just wait that long, Elena.† But as they headed for the cafeteria, Elena noticed an auburn head disappearing down the art and music corridor. And she remembered something Stefan had said earlier this year, about Caroline taking him into the photography room at lunchtime. For privacy, Caroline had told him. â€Å"You two go on; I forgot something,† she said as soon as Bonnie and Meredith both had food on their cafeteria trays. Then she pretended to be deaf as she walked rapidly out and backtracked to the art wing. All the rooms were dark, but the photography room's door was unlocked. Something made Elena turn the knob cautiously, and move quietly once she was inside, rather than marching in to start a confrontation as she'd planned. Was Caroline in here? If so, what was she doing alone in the dark? The room appeared at first to be deserted. Then Elena heard the murmur of voices from a small alcove at the back, and she saw that the darkroom door was ajar. Silently, stealthily, she made her way until she stood just outside the doorway, and the murmur of sound resolved itself into words. â€Å"But how can we be sure she'll be the one they pick?† That was Caroline. â€Å"My father's on the school board. They'll pick her, all right.† Andthat was Tyler Smallwood. His father was a lawyer, and on every board there was. â€Å"Besides, who else would it be?† he continued. † ‘The Spirit of Fell's Church' is supposed to be brainy as well as built.† â€Å"AndI don't have brains, I suppose?† â€Å"Did I say that? Look, if you want to be the one to parade in a white dress on Founders' Day, fine. But if you want to see Stefan Salvatore run out of town on the evidence of his own girlfriend's diary†¦Ã¢â‚¬  â€Å"But why wait so long?† Tyler sounded impatient. â€Å"Because this way it'll ruin the celebration, too. TheFells' celebration. Why shouldthey get the credit for founding this town? The Smallwoods were here first.† â€Å"Oh, who cares about who founded the town? All I want is to see Elena humiliated in front of the entire â€Å"And Salvatore.† The pure hatred and malice in Tyler's voice made Elena's flesh crawl. â€Å"He'll be lucky if he doesn't end up hanging from a tree. You're sure the evidence is there?† â€Å"How many times do I have to tell you? First, it says she lost the ribbon on September second in the cemetery. Then, it says Stefan picked it up that day and kept it. Wickery Bridge is right beside the cemetery. That means Stefan was near the bridge on September second, the night the old man was attacked there. Everybody already knows he was on hand for the attacks on Vickie and Tanner. What more do you want?† â€Å"It would never stand up in court. Maybe I should get some corroborating evidence. Like ask old Mrs. Flowers what time he got home that night.† â€Å"Oh, whocares ? Most people think he's guilty already. The diary talks about some big secret he's hiding from everyone. People will get the idea.† â€Å"You're keeping it in a safe place?† â€Å"No, Tyler, I'm keeping it out on the coffee table. How stupid do you think I am?† â€Å"Stupid enough to send Elena notes tipping her off.† There was a crackle, as of newspaper. â€Å"Look at this, this is unbelievable. And it's got to stop,now. What if she figures out who's doing it?† â€Å"What's she going to do about it, call the police?† â€Å"I still want you to lay off. Just wait until Founders' Day; then you'll get to watch the Ice Princess melt.† â€Å"And to say ciao to Stefan. Tyler†¦ nobody's really going to hurt him, are they?† â€Å"Whocares?† Tyler mocked her earlier tone. â€Å"You leave that to me and my friends, Caroline. You just do your part, okay?† Caroline's voice dropped to a throaty murmur. â€Å"Convince me.† After a pause Tyler chuckled. There was movement, rustling sounds, a sigh. Elena turned and slipped out of the room as quietly as she had come in. She got into the next hallway, and then she leaned against the lockers there, trying to think. It was almost too much to absorb at once. Caroline, who had once been her best friend, had betrayed her and wanted to see her humiliated in front of the whole school. Tyler, who'd always seemed more an annoying jerk than a real threat, was planning to get Stefan driven out of town – or killed. And the worst thing was that they were using Elena's own diary to do it. Now she understood the beginning of her dream last night. She'd had a dream like it the day before she had discovered that Stefan was missing. In both, Stefan had looked at her with angry, accusing eyes, and then he had thrown a book at her feet and walked away. Not a book. Her diary. Which had in it evidence that could be deadly to Stefan. Three times people in Fell's Church had been attacked, and three times Stefan had been on the scene. What would that look And there was no way to tell the truth. Supposing she said, â€Å"Stefan isn't guilty. It's his brother Damon who hates him and who knows how much Stefan hates even the thought of hurting and killing. And who followed Stefan around and attacked people to make Stefan think maybe Stefan had done it, to drive him mad. And who's here in townsomewhere – look for him in the cemetery or in the woods. But, oh, by the way, don't just search for a good-looking guy, because he might be a crow at the moment. â€Å"Incidentally, he's a vampire.† She didn't even believe it herself. It sounded ludicrous. A twinge from the side of her neck reminded her how serious the ludicrous story really was. She felt odd today, almost as if she were sick. It was more than just tension and lack of sleep. She felt slightly dizzy, and at times the ground seemed to be spongy, giving way under her feet and then springing back. Flu symptoms, except that she was sure they weren't due to anyvirus in her bloodstream. Damon's fault, again. Everything was Damon's fault, except the diary. She had no one to blame for that but herself. If only she hadn't written about Stefan, if only she hadn't brought the diary to school. If only she hadn't left it in Bonnie's living room. If only, if only. Right now all that mattered was that she had to get it back.

Competition Energy Drinks Essay

The beverage industry, like most food service industries in these economic times, faces many challenges. Not one company is excluded from the challenges of economic conditions, demographics, social and global forces, and regulatory, political, and legal factors. The global economic conditions affect the energy drink industry in many ways. This industry depends highly on the disposable income of its customers. People are very cautious with their money these days and if additional income does not exist to purchase these items, then the companies suffer. In recent projections, however, this does not seem to be the case. The global industry factors show a projected growth of $20 trillion in sales between 2009 and 2014, and demand for these alternative beverages is expected to increase globally as customer purchasing power increases. Social factors play an important part in the industry’s strategy, as well. With customers concerned with healthy lifestyles and exercise, the alternative beverage industry has increased sales in the last decade. Customers demanding low calorie, energy & vitamin-enhancing drinks turn to these types of beverages for their needs instead of carbonated soft drinks. Alternative drinks are consumed by a slim demographic. These products are generally used by young adults, college and high school students, athletes and exercise aficionados. Another branch of these drinks are the energy â€Å"shots,† which have become very popular in the last decade. With new legislation and changing regulations, it is very important for companies to stay abreast of all changes. There has been an increase in negative reports on what affects energy drinks have on people that use them, from high blood pressure to arrhythmia, which as forced some companies to include warning labels on their packaging. There is also a concern with the consumption of these drinks contributing to the obesity issue, many of these drinks contain high fructose corn syrup, and many additives that can contribute to weight gain if consumption is not limited. Competition is fierce in this industry; not only between the two biggest competitors, Coca-Cola Company and PepsiCo Inc., but also Red Bull GmbH, Hansen Natural Corporation and privately owned regional brands. The two major companies, Pepsi and Coca Cola, are strong competitors within the alternative beverage market and use both the introduction of new products as well as the introduction of existing products in new markets to increase sales. Pepsi has introduced several new products – Charge, Rebuild, and Defend – three new brands available to consumers interested in vitamin-enhanced drink alternatives. Pepsi has also recently agreed to distribute the â€Å"Rockstar† brand drinks in Canada and the United States. Coca-Cola Company’s strategy is to distribute their existing brands in the new markets of Japan, South Korea, Hong Kong and other Asia/Pacific countries. In order to compete with these two major companies, Red Bull relies on sponsorships and promotion as well as celebrity endorsements. By using advertising in this manner, Red Bull is able to use its slogans and logos in a variety of ways to get their name out into the public. Hansen Natural Corporation utilizes a different approach to boost sales. This company increased their package size and still maintained a competitive price compared to Red Bull. Like Red Bull, Hansen also uses celebrity promotion and sponsorship as a marketing tool. This is not to say that PepsiCo Inc. and Coca-Cola Company do not utilize this method of advertising, as they both spend billions on advertising promotions, celebrity, and sporting endorsements. The competitive edge in this case lies with PepsiCo Inc. , whose sales of energy and alternative beverages have surpassed its competitors in the past few years. New entrants are not a strong competitive pressure for this industry. The dominating companies are unsurpassed in their strong brand names and great distribution channels. The industry is fully saturated. These factors make it difficult for new companies to compete against them. Any new company wanting to get into this industry would face high capital start-up expenditures and would surely fail due to the high cost. Substitution of products is also an area where the competitive force is low. With brand loyalty, the market for substitution is very low. Consumers want the brands they are used and won’t accept substitution. Suppliers for the industry do not hold much competitive pressure either. Suppliers to this industry are bottling equipment manufactures and secondary packaging suppliers. The suppliers have little bargaining power, as the two major brands own their own bottling centers. As discussed earlier, changes in this industry’s long-term growth rate is a positive one. Growth is high in this market and is expected to continue to grow. One of the reasons for this is the increasing globalization. Coke is expanding its operations to be more global as are some of its competitors. The changing spectrum of the customer base is not really a factor here. Most of the demographic has not changed much since the introduction of these alternative beverages. Marketing and innovation has to continue to grow so that the company can grow. Regulatory influences and government policy changes are a huge factor in this industry. As the customers call for increased legislation and regulation of the ingredients, the companies have to make adjustments to their drink formulas, and this could prove costly if not monitored closely. Society is constantly changing and this industry needs to transition with these changes. By the introduction of new products and the re-tooling of existing products, all of the competitors can be successful. This industry has several success factors, product marketing, product differentiation, brand name, a strong distribution network and the ability to adapt to change. PepsiCo Inc. and Coca-Cola Company have strong aspects of all of these factors which is what has made both of them so successful. PepsiCo Inc.has branched into the food market as well as remaining in the soft drink and alternative beverage markets. Coke has had a similar strategy and relies heavily on their brand name and product recognition. All of the companies have unique and successful marketing techniques such as sponsorships, promotions, and celebrity endorsements. In order to achieve a successful strategic plan, a company needs to establish a group of people to discuss the goals and objectives of their company, sometimes called a task force. The task force should then decide what the company’s goals and objectives are. By drafting Mission and Vision statements, this task force can begin to convey their goals and objectives. Strategic planning is an on-going task for every company. When a plan is established the implementation and monitoring phases begin. To be successful a company should be constantly monitoring its goals and objectives and changing them when the need arises. With competition so high in this industry, a strong strategic plan is critical. In viewing these companies one can see that their plans are very strong. In order to continue to grow and compete in this market all companies need to look forward at the changing times, attitudes and cultures. All of the companies in this market, as with any market, need to maintain their competitive advantage and find new and different ways to achieve it. A comprehensive action plan needs to be put into place and reviewed often. By doing this all companies have a better chance at keeping their competitive advantage and enjoying better profits for their shareholders.