This document summarizes a research paper on success factors in offset deals. It begins with an abstract that outlines the goals of examining success factors in offset projects between buyers, sellers, and participating industries. It then provides context on offsets, including definitions, advantages, and problems that can arise from unfulfilled offset obligations. The paper reviews literature on offsets and success factors, identifying limitations in success factor research. It uses Saudi Arabia as a case study to examine influencing factors for success from the buyer and seller sides. The goal is to define generic success factors that can help optimize the execution of offset projects and avoid problems.
Impact of Defence Offsets On The Companies of The Participating Industry - A ...Waqas Tariq
The knowledge about the connection between purchases of equipment and offset obligations is almost unknown in many areas of the economy. The requests for this offsets occurs primarily in the area of arms imports and covers the full range of benefits that firms provide to the buying governments as inducements for the purchase of military equipment. For those companies which participate for the first time in such offset programs, is it very limited to inform on the effects of offsets. So it is necessary to provide information about the impact of offset for the companies of the participating industry. This examination was triggered through an overall research project on the impact of offsets on the business processes of SMEs. During the necessary Pre-Study for this research project first indications appear that the impact of offset is often not known by the affected companies. The purpose of this paper is to analyze the generic impact of offset for the affected companies with the help of a case study examination. The data for this examination were obtained from secondary sources. After data collection, an analysis was performed on the chosen case studies: Switzerland and Malaysia. This analyzes shows that offset has a wide range impact for the companies.
White Paper: Low cost country sourcing – navigating unchartered opportunitiesGEP
An increasing number of enterprises are developing newer and more innovative procurement strategies to position themselves for supply management success. One such strategy is for businesses to expand their strategic scope beyond familiar shores to capitalize on growing opportunities abroad through Low Cost Country Sourcing (LCCS).
This presentation by Jocelyn Martel, Professor ESSEC, was made during the discussion “Barriers to exit” held at the 132nd meeting of the OECD Competition Committee on 4 December 2019. More papers and presentations on the topic can be found at oe.cd/bte.
Impact of Defence Offsets On The Companies of The Participating Industry - A ...Waqas Tariq
The knowledge about the connection between purchases of equipment and offset obligations is almost unknown in many areas of the economy. The requests for this offsets occurs primarily in the area of arms imports and covers the full range of benefits that firms provide to the buying governments as inducements for the purchase of military equipment. For those companies which participate for the first time in such offset programs, is it very limited to inform on the effects of offsets. So it is necessary to provide information about the impact of offset for the companies of the participating industry. This examination was triggered through an overall research project on the impact of offsets on the business processes of SMEs. During the necessary Pre-Study for this research project first indications appear that the impact of offset is often not known by the affected companies. The purpose of this paper is to analyze the generic impact of offset for the affected companies with the help of a case study examination. The data for this examination were obtained from secondary sources. After data collection, an analysis was performed on the chosen case studies: Switzerland and Malaysia. This analyzes shows that offset has a wide range impact for the companies.
White Paper: Low cost country sourcing – navigating unchartered opportunitiesGEP
An increasing number of enterprises are developing newer and more innovative procurement strategies to position themselves for supply management success. One such strategy is for businesses to expand their strategic scope beyond familiar shores to capitalize on growing opportunities abroad through Low Cost Country Sourcing (LCCS).
This presentation by Jocelyn Martel, Professor ESSEC, was made during the discussion “Barriers to exit” held at the 132nd meeting of the OECD Competition Committee on 4 December 2019. More papers and presentations on the topic can be found at oe.cd/bte.
Working Capital – Seeing a Broader Picture The article by Igor Zax, addresses working capital management within changing economic and industry environment, its links to business strategy, supply chain, distribution and industry models.
Published in Global Treasury Briefing and GT News – publications of AFP (Association of Financial Professionals).
Local content in the extractive sector: what opportunities in a challenging e...Isabelle Ramdoo
This presentation looks at local content policies in the extractive sector. It focuses in particular at the opportunities for developing countries in a challenging global environment
This presentation by Müge Adalet McGowan, Senior Economist, Economics Department, OECD, was made during the discussion “Barriers to exit” held at the 132nd meeting of the OECD Competition Committee on 4 December 2019. More papers and presentations on the topic can be found at oe.cd/bte.
This slide deck discusses real estate lending credit considerations including advantages, risks, funding needs, and more for the three most-researched real estate industries on RMA's eStatement Studies.
Basic understanding of Cross-Border M&A
Mai Doan
20 May 2014
Why use M&A strategy?
From the buyer side:
To enter a new market
To have network foundation
To secure control over the business
Why use M&A strategy?
From the seller side:
<49%:>49%: because they can!!!
100%: to retire, get the cash and move to another business
How do they do that?
Horizontal acquisition: same industry
M&A between companies in the same industry
Vertical acquisition: in the supply chain
M&A between companies in different stages of the supply chain or distribution channels.
Related acquisition: related industry
M&A between companies in highly related industries.
Wait, so what is M&A?
M&A= Merge and Acquisition
Just another corporate strategy?
(There are different levels in an M&A transaction based on how it is done.)
Merge: Company A and Company B are willing to comes together co-equal basis.
Acquisition: Company A buys Company B’s stock in order to have management control.
Take over: Company B could not resist being hostile take over by Company A.
How about cross-border M&A?
Still exactly the same thing but more complicated because:
It’s a cross-border transaction.
Legal barriers are more complex.
The gap between business cultures is larger.
And so many other things needed to be considered.
For those who are still being confused out there, cross-border M&A is a concept in which…
It’s an international “marriage” between two companies to form a “family”.
The two parties will be responsible for the “family” finance and management strategies.
The two parties will share the profit/loss accordingly.
Cross-border M&A between Japan and Vietnam in 2013-2014
Here is just a review
Cross-border M&A really helps to overcoming entry barriers into new market.
It also saves cost but adds more skills and capability for new product development.
And it definitely create added-value and reshapes your competitive scope.
Thank you!!!
The concept of M&A and all the “tricks” along with it have been written in piles and piles of books. Please note this presentation serve the purpose to simplify the idea of cross-border M&A for a clueless person like myself. Hope it helps to introduce you to this fun and exciting remarks of the finance industry. I’m looking forward to having more to add on this topic. Anyhow, good luck!!!
How to Stack Your Bank’s Portfolio with More Winners and Fewer LosersColleen Beck-Domanico
How does an industry affect a company and its repayment risks? To find out, read this slide deck and learn about Porter's five forces, a sixth force that comes into play, the business cycle, and the impact of the business cycle on a company.
zero-sum game or a positive-sum game, domestic exchange ratio , Leontief Paradox
how the advanced economies should cope with the shift in comparative advantage.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Contractual Steps for Smooth Delivery of Infrastructure ProjectsAM Publications
Governments and public entities spend huge public money for purchase of goods, services and construction of works. Therefore, it is vital that procurement system shall not only be efficient but also be transparent, fair & just without compromising the quality of output. Various stakeholders have different interests in influencing the decision-making. This paper elaborates various possible alternative strategies available for procurement. Depending upon environment and various challenges, one can choose the best mode, method & process of procurement. The procurement could be for goods, work, services, consultancy etc. Consultancy contracts are different game altogether, because they have more emphasis on intellectual inputs rather than mere physical outcome. The scope of this paper is limited to works procurement.
Working Capital – Seeing a Broader Picture The article by Igor Zax, addresses working capital management within changing economic and industry environment, its links to business strategy, supply chain, distribution and industry models.
Published in Global Treasury Briefing and GT News – publications of AFP (Association of Financial Professionals).
Local content in the extractive sector: what opportunities in a challenging e...Isabelle Ramdoo
This presentation looks at local content policies in the extractive sector. It focuses in particular at the opportunities for developing countries in a challenging global environment
This presentation by Müge Adalet McGowan, Senior Economist, Economics Department, OECD, was made during the discussion “Barriers to exit” held at the 132nd meeting of the OECD Competition Committee on 4 December 2019. More papers and presentations on the topic can be found at oe.cd/bte.
This slide deck discusses real estate lending credit considerations including advantages, risks, funding needs, and more for the three most-researched real estate industries on RMA's eStatement Studies.
Basic understanding of Cross-Border M&A
Mai Doan
20 May 2014
Why use M&A strategy?
From the buyer side:
To enter a new market
To have network foundation
To secure control over the business
Why use M&A strategy?
From the seller side:
<49%:>49%: because they can!!!
100%: to retire, get the cash and move to another business
How do they do that?
Horizontal acquisition: same industry
M&A between companies in the same industry
Vertical acquisition: in the supply chain
M&A between companies in different stages of the supply chain or distribution channels.
Related acquisition: related industry
M&A between companies in highly related industries.
Wait, so what is M&A?
M&A= Merge and Acquisition
Just another corporate strategy?
(There are different levels in an M&A transaction based on how it is done.)
Merge: Company A and Company B are willing to comes together co-equal basis.
Acquisition: Company A buys Company B’s stock in order to have management control.
Take over: Company B could not resist being hostile take over by Company A.
How about cross-border M&A?
Still exactly the same thing but more complicated because:
It’s a cross-border transaction.
Legal barriers are more complex.
The gap between business cultures is larger.
And so many other things needed to be considered.
For those who are still being confused out there, cross-border M&A is a concept in which…
It’s an international “marriage” between two companies to form a “family”.
The two parties will be responsible for the “family” finance and management strategies.
The two parties will share the profit/loss accordingly.
Cross-border M&A between Japan and Vietnam in 2013-2014
Here is just a review
Cross-border M&A really helps to overcoming entry barriers into new market.
It also saves cost but adds more skills and capability for new product development.
And it definitely create added-value and reshapes your competitive scope.
Thank you!!!
The concept of M&A and all the “tricks” along with it have been written in piles and piles of books. Please note this presentation serve the purpose to simplify the idea of cross-border M&A for a clueless person like myself. Hope it helps to introduce you to this fun and exciting remarks of the finance industry. I’m looking forward to having more to add on this topic. Anyhow, good luck!!!
How to Stack Your Bank’s Portfolio with More Winners and Fewer LosersColleen Beck-Domanico
How does an industry affect a company and its repayment risks? To find out, read this slide deck and learn about Porter's five forces, a sixth force that comes into play, the business cycle, and the impact of the business cycle on a company.
zero-sum game or a positive-sum game, domestic exchange ratio , Leontief Paradox
how the advanced economies should cope with the shift in comparative advantage.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Contractual Steps for Smooth Delivery of Infrastructure ProjectsAM Publications
Governments and public entities spend huge public money for purchase of goods, services and construction of works. Therefore, it is vital that procurement system shall not only be efficient but also be transparent, fair & just without compromising the quality of output. Various stakeholders have different interests in influencing the decision-making. This paper elaborates various possible alternative strategies available for procurement. Depending upon environment and various challenges, one can choose the best mode, method & process of procurement. The procurement could be for goods, work, services, consultancy etc. Consultancy contracts are different game altogether, because they have more emphasis on intellectual inputs rather than mere physical outcome. The scope of this paper is limited to works procurement.
The outlook according to key players across the construction sector and the insurance industry
Key players in the construction sector recently met with leading construction insurers to discuss current trends and debate the future outlook for their industries. The meeting of minds was organised by Lucas Fettes & Partners and Constructing Excellence, the organisation charged with driving the change agenda in construction.
Read the report: The future for construction insurance
Lucas Fettes and Constructing Excellence have published a report that presents an overview of some of the insights that emerged from the initial discussion, including some direct extracts from the transcript of the evening.
Blockchain Smart Contracts - getting from hype to reality Capgemini
The potential of smart contracts – programmable contracts that automatically execute when pre-defined conditions are met – is the subject of much debate and discussion in the financial services industry. Smart contracts, enabled by blockchain or distributed ledgers, have been held up as a cure for many of the problems associated with traditional financial contracts, which are simply not geared up for the digital age. Reliance on physical documents leads to delays, inefficiencies and increases exposure to errors and fraud. Financial intermediaries, while providing interoperability for the
finance system and reducing risk, create overhead costs for and increase compliance requirements.
In this report, we aim to cut through the speculation and hype around the potential of smart contracts. We have conducted detailed discussions with financial services industry professionals, prominent smart contract startups and academics (see Research Methodology at the end of this paper). Our study confirms that smart contract adoption will lead to reduced risks, lower administration and service costs, and more efficient business processes across all major segments of the financial services industry. These benefits will accrue from technology, process redesign as well as from fundamental changes in operating models, as they require a group of firms to share a common view of the contract between trading parties. Consumers will benefit from more competitive products, such as mortgage loans and insurance policies, along with simpler processes that are free of many of the hassles of today’s customer experience.
Smart Contracts in Financial Services: Getting from Hype to Reality. Reporteraser Juan José Calderón
Smart Contracts in Financial Services: Getting from Hype to Reality.
Executive Summary
The potential of smart contracts – programmable contracts that automatically execute when pre-defi ned conditions are met – is the subject of much debate and discussion in the fi nancial services industry.
Smart contracts, enabled by blockchain or distributed ledgers, have been held up as a cure for many of the problems associated with traditional fi nancial contracts, which are simply not geared up for the digital age. Reliance on physical documents leads to delays, ineffi ciencies and increases exposure to errors and fraud. Financial intermediaries, while providing interoperability for the fi nance system and reducing risk, create overhead costs for and increase compliance requirements.
In this report, we aim to cut through the speculation and hype around the potential of smart contracts. We have conducted detailed discussions with fi nancial services industry professionals, prominent smart contract startups, and academics (see Research Methodology at the end of this paper). Our study confi rms that smart contract adoption will lead to reduced risks, lower administration and service costs, and more effi cient business processes across all major segments of the fi nancial services industry. These benefi ts will accrue from technology, process redesign as well as from fundamental changes in operating models, as they require a group of fi rms to share a common view of the contract between trading parties. Consumers will benefi t from more competitive products, such as mortgage loans and insurance policies, along with simpler processes that are free of many of the hassles of today’s customer experience.
Next Wave of Fintech: Redefining Financial Services through TechnologyRobin Teigland
The Stockholm School of Economics and PA Consulting present The Next wave of Fintech, a sequel to the 2015 Stockholm Fintech Report, focusing on the new InsurTech and RegTech segments. The report, which describes and quantifies the Swedish market for these segments, contains valuable insights and recommendations for decision makers at banks, incubators, startup companies, public authorities and investors.
Strengthen outcome based capital project deliveryBob Prieto
Over the course of my career I have looked at a number of underperforming mega-projects. In every instance there was a common element of underperformance, the lack of clarity around the strategic business outcomes to be accomplished. Conversely, some of the best performing projects exhibited high clarity of recognized and shared outcomes.
This paper looks at the imperative to continue the shift to outcomes based contracts versus more traditional output based contracting forms. This shift is discussed from the perspective of the engineering and construction industry in the United States but draws upon the experience in other countries and other sectors.
Defence Procurement - Theory vs PracticeRaj Narayan
This article, presented at a seminar by CII on Make in India for the Indian Air Force in May,2017, examines in detail the various clauses in the Defence procurement manual and their actual implementation, with a few useful solutions suggested by the author.
Mergers & Acquisition (Return Of The Big Deal!)André Harrell
After years of stagnant activity, mergers and acqui- sitions surged in 2014, with the announcement
of more than 7,500 deals1 with a combined value exceeding $3.5 trillion. That’s an increase of more than 7 percent by number and more than 25 percent by value compared with 2013. While
that volume hasn’t yet reached the high of nearly 10,000 deals set in 2007, a new wave of activity
is clearly under way.
Similar to Success Factors in Offset Deals: A Case Study Based Examination (20)
The Use of Java Swing’s Components to Develop a WidgetWaqas Tariq
Widget is a kind of application provides a single service such as a map, news feed, simple clock, battery-life indicators, etc. This kind of interactive software object has been developed to facilitate user interface (UI) design. A user interface (UI) function may be implemented using different widgets with the same function. In this article, we present the widget as a platform that is generally used in various applications, such as in desktop, web browser, and mobile phone. We also describe a visual menu of Java Swing’s components that will be used to establish widget. It will assume that we have successfully compiled and run a program that uses Swing components.
3D Human Hand Posture Reconstruction Using a Single 2D ImageWaqas Tariq
Passive sensing of the 3D geometric posture of the human hand has been studied extensively over the past decade. However, these research efforts have been hampered by the computational complexity caused by inverse kinematics and 3D reconstruction. In this paper, our objective focuses on 3D hand posture estimation based on a single 2D image with aim of robotic applications. We introduce the human hand model with 27 degrees of freedom (DOFs) and analyze some of its constraints to reduce the DOFs without any significant degradation of performance. A novel algorithm to estimate the 3D hand posture from eight 2D projected feature points is proposed. Experimental results using real images confirm that our algorithm gives good estimates of the 3D hand pose. Keywords: 3D hand posture estimation; Model-based approach; Gesture recognition; human- computer interface; machine vision.
Camera as Mouse and Keyboard for Handicap Person with Troubleshooting Ability...Waqas Tariq
Camera mouse has been widely used for handicap person to interact with computer. The utmost important of the use of camera mouse is must be able to replace all roles of typical mouse and keyboard. It must be able to provide all mouse click events and keyboard functions (include all shortcut keys) when it is used by handicap person. Also, the use of camera mouse must allow users troubleshooting by themselves. Moreover, it must be able to eliminate neck fatigue effect when it is used during long period. In this paper, we propose camera mouse system with timer as left click event and blinking as right click event. Also, we modify original screen keyboard layout by add two additional buttons (button “drag/ drop” is used to do drag and drop of mouse events and another button is used to call task manager (for troubleshooting)) and change behavior of CTRL, ALT, SHIFT, and CAPS LOCK keys in order to provide shortcut keys of keyboard. Also, we develop recovery method which allows users go from camera and then come back again in order to eliminate neck fatigue effect. The experiments which involve several users have been done in our laboratory. The results show that the use of our camera mouse able to allow users do typing, left and right click events, drag and drop events, and troubleshooting without hand. By implement this system, handicap person can use computer more comfortable and reduce the dryness of eyes.
A Proposed Web Accessibility Framework for the Arab DisabledWaqas Tariq
The Web is providing unprecedented access to information and interaction for people with disabilities. This paper presents a Web accessibility framework which offers the ease of the Web accessing for the disabled Arab users and facilitates their lifelong learning as well. The proposed framework system provides the disabled Arab user with an easy means of access using their mother language so they don’t have to overcome the barrier of learning the target-spoken language. This framework is based on analyzing the web page meta-language, extracting its content and reformulating it in a suitable format for the disabled users. The basic objective of this framework is supporting the equal rights of the Arab disabled people for their access to the education and training with non disabled people. Key Words : Arabic Moon code, Arabic Sign Language, Deaf, Deaf-blind, E-learning Interactivity, Moon code, Web accessibility , Web framework , Web System, WWW.
Real Time Blinking Detection Based on Gabor FilterWaqas Tariq
New method of blinking detection is proposed. The utmost important of blinking detections method is robust against different users, noise, and also change of eye shape. In this paper, we propose blinking detections method by measuring of distance between two arcs of eye (upper part and lower part). We detect eye arcs by apply Gabor filter onto eye image. As we know that Gabor filter has advantage on image processing application since it able to extract spatial localized spectral features, such line, arch, and other shape are more easily detected. After two of eye arcs are detected, we measure the distance between both by using connected labeling method. The open eye is marked by the distance between two arcs is more than threshold and otherwise, the closed eye is marked by the distance less than threshold. The experiment result shows that our proposed method robust enough against different users, noise, and eye shape changes with perfectly accuracy.
Computer Input with Human Eyes-Only Using Two Purkinje Images Which Works in ...Waqas Tariq
A method for computer input with human eyes-only using two Purkinje images which works in a real time basis without calibration is proposed. Experimental results shows that cornea curvature can be estimated by using two light sources derived Purkinje images so that no calibration for reducing person-to-person difference of cornea curvature. It is found that the proposed system allows usersf movements of 30 degrees in roll direction and 15 degrees in pitch direction utilizing detected face attitude which is derived from the face plane consisting three feature points on the face, two eyes and nose or mouth. Also it is found that the proposed system does work in a real time basis.
Toward a More Robust Usability concept with Perceived Enjoyment in the contex...Waqas Tariq
Mobile multimedia service is relatively new but has quickly dominated people¡¯s lives, especially among young people. To explain this popularity, this study applies and modifies the Technology Acceptance Model (TAM) to propose a research model and conduct an empirical study. The goal of study is to examine the role of Perceived Enjoyment (PE) and what determinants can contribute to PE in the context of using mobile multimedia service. The result indicates that PE is influencing on Perceived Usefulness (PU) and Perceived Ease of Use (PEOU) and directly Behavior Intention (BI). Aesthetics and flow are key determinants to explain Perceived Enjoyment (PE) in mobile multimedia usage.
Collaborative Learning of Organisational KnolwedgeWaqas Tariq
This paper presents recent research into methods used in Australian Indigenous Knowledge sharing and looks at how these can support the creation of suitable collaborative envi- ronments for timely organisational learning. The protocols and practices as used today and in the past by Indigenous communities are presented and discussed in relation to their relevance to a personalised system of knowledge sharing in modern organisational cultures. This research focuses on user models, knowledge acquisition and integration of data for constructivist learning in a networked repository of or- ganisational knowledge. The data collected in the repository is searched to provide collections of up-to-date and relevant material for training in a work environment. The aim is to improve knowledge collection and sharing in a team envi- ronment. This knowledge can then be collated into a story or workflow that represents the present knowledge in the organisation.
Our research aims to propose a global approach for specification, design and verification of context awareness Human Computer Interface (HCI). This is a Model Based Design approach (MBD). This methodology describes the ubiquitous environment by ontologies. OWL is the standard used for this purpose. The specification and modeling of Human-Computer Interaction are based on Petri nets (PN). This raises the question of representation of Petri nets with XML. We use for this purpose, the standard of modeling PNML. In this paper, we propose an extension of this standard for specification, generation and verification of HCI. This extension is a methodological approach for the construction of PNML with Petri nets. The design principle uses the concept of composition of elementary structures of Petri nets as PNML Modular. The objective is to obtain a valid interface through verification of properties of elementary Petri nets represented with PNML.
Development of Sign Signal Translation System Based on Altera’s FPGA DE2 BoardWaqas Tariq
The main aim of this paper is to build a system that is capable of detecting and recognizing the hand gesture in an image captured by using a camera. The system is built based on Altera’s FPGA DE2 board, which contains a Nios II soft core processor. Image processing techniques and a simple but effective algorithm are implemented to achieve this purpose. Image processing techniques are used to smooth the image in order to ease the subsequent processes in translating the hand sign signal. The algorithm is built for translating the numerical hand sign signal and the result are displayed on the seven segment display. Altera’s Quartus II, SOPC Builder and Nios II EDS software are used to construct the system. By using SOPC Builder, the related components on the DE2 board can be interconnected easily and orderly compared to traditional method that requires lengthy source code and time consuming. Quartus II is used to compile and download the design to the DE2 board. Then, under Nios II EDS, C programming language is used to code the hand sign translation algorithm. Being able to recognize the hand sign signal from images can helps human in controlling a robot and other applications which require only a simple set of instructions provided a CMOS sensor is included in the system.
An overview on Advanced Research Works on Brain-Computer InterfaceWaqas Tariq
A brain–computer interface (BCI) is a proficient result in the research field of human- computer synergy, where direct articulation between brain and an external device occurs resulting in augmenting, assisting and repairing human cognitive. Advanced works like generating brain-computer interface switch technologies for intermittent (or asynchronous) control in natural environments or developing brain-computer interface by Fuzzy logic Systems or by implementing wavelet theory to drive its efficacies are still going on and some useful results has also been found out. The requirements to develop this brain machine interface is also growing day by day i.e. like neuropsychological rehabilitation, emotion control, etc. An overview on the control theory and some advanced works on the field of brain machine interface are shown in this paper.
Exploring the Relationship Between Mobile Phone and Senior Citizens: A Malays...Waqas Tariq
There is growing ageing phenomena with the rise of ageing population throughout the world. According to the World Health Organization (2002), the growing ageing population indicates 694 million, or 223% is expected for people aged 60 and over, since 1970 and 2025.The growth is especially significant in some advanced countries such as North America, Japan, Italy, Germany, United Kingdom and so forth. This growing older adult population has significantly impact the social-culture, lifestyle, healthcare system, economy, infrastructure and government policy of a nation. However, there are limited research studies on the perception and usage of a mobile phone and its service for senior citizens in a developing nation like Malaysia. This paper explores the relationship between mobile phones and senior citizens in Malaysia from the perspective of a developing country. We conducted an exploratory study using contextual interviews with 5 senior citizens of how they perceive their mobile phones. This paper reveals 4 interesting themes from this preliminary study, in addition to the findings of the desirable mobile requirements for local senior citizens with respect of health, safety and communication purposes. The findings of this study bring interesting insight to local telecommunication industries as a whole, and will also serve as groundwork for more in-depth study in the future.
Principles of Good Screen Design in WebsitesWaqas Tariq
Visual techniques for proper arrangement of the elements on the user screen have helped the designers to make the screen look good and attractive. Several visual techniques emphasize the arrangement and ordering of the screen elements based on particular criteria for best appearance of the screen. This paper investigates few significant visual techniques in various web user interfaces and showcases the results for better understanding and their presence.
Virtual teams are used more and more by companies and other organizations to receive benefits. They are a great way to enable teamwork in situations where people are not sitting in the same physical place at the same time. As companies seek to increase the use of virtual teams, a need exists to explore the context of these teams, the virtuality of a team and software that may help these teams working virtualy. Virtual teams have the same basic principles as traditional teams, but there is one big difference. This difference is the way the team members communicate. Instead of using the dynamics of in-office face-to-face exchange, they now rely on special communication channels enabled by modern technologies, such as e-mails, faxes, phone calls and teleconferences, virtual meetings etc. This is why this paper is focused on the issues regarding virtual teams, and how these teams are created and progressing in Albania.
Cognitive Approach Towards the Maintenance of Web-Sites Through Quality Evalu...Waqas Tariq
It is a well established fact that the Web-Applications require frequent maintenance because of cutting– edge business competitions. The authors have worked on quality evaluation of web-site of Indian ecommerce domain. As a result of that work they have made a quality-wise ranking of these sites. According to their work and also the survey done by various other groups Futurebazaar web-site is considered to be one of the best Indian e-shopping sites. In this research paper the authors are assessing the maintenance of the same site by incorporating the problems incurred during this evaluation. This exercise gives a real world maintainability problem of web-sites. This work will give a clear picture of all the quality metrics which are directly or indirectly related with the maintainability of the web-site.
USEFul: A Framework to Mainstream Web Site Usability through Automated Evalua...Waqas Tariq
A paradox has been observed whereby web site usability is proven to be an essential element in a web site, yet at the same time there exist an abundance of web pages with poor usability. This discrepancy is the result of limitations that are currently preventing web developers in the commercial sector from producing usable web sites. In this paper we propose a framework whose objective is to alleviate this problem by automating certain aspects of the usability evaluation process. Mainstreaming comes as a result of automation, therefore enabling a non-expert in the field of usability to conduct the evaluation. This results in reducing the costs associated with such evaluation. Additionally, the framework allows the flexibility of adding, modifying or deleting guidelines without altering the code that references them since the guidelines and the code are two separate components. A comparison of the evaluation results carried out using the framework against published evaluations of web sites carried out by web site usability professionals reveals that the framework is able to automatically identify the majority of usability violations. Due to the consistency with which it evaluates, it identified additional guideline-related violations that were not identified by the human evaluators.
Robot Arm Utilized Having Meal Support System Based on Computer Input by Huma...Waqas Tariq
A robot arm utilized having meal support system based on computer input by human eyes only is proposed. The proposed system is developed for handicap/disabled persons as well as elderly persons and tested with able persons with several shapes and size of eyes under a variety of illumination conditions. The test results with normal persons show the proposed system does work well for selection of the desired foods and for retrieve the foods as appropriate as usersf requirements. It is found that the proposed system is 21% much faster than the manually controlled robotics.
Dynamic Construction of Telugu Speech Corpus for Voice Enabled Text EditorWaqas Tariq
In recent decades speech interactive systems have gained increasing importance. Performance of an ASR system mainly depends on the availability of large corpus of speech. The conventional method of building a large vocabulary speech recognizer for any language uses a top-down approach to speech. This approach requires large speech corpus with sentence or phoneme level transcription of the speech utterances. The transcriptions must also include different speech order so that the recognizer can build models for all the sounds present. But, for Telugu language, because of its complex nature, a very large, well annotated speech database is very difficult to build. It is very difficult, if not impossible, to cover all the words of any Indian language, where each word may have thousands and millions of word forms. A significant part of grammar that is handled by syntax in English (and other similar languages) is handled within morphology in Telugu. Phrases including several words (that is, tokens) in English would be mapped on to a single word in Telugu.Telugu language is phonetic in nature in addition to rich in morphology. That is why the speech technology developed for English cannot be applied to Telugu language. This paper highlights the work carried out in an attempt to build a voice enabled text editor with capability of automatic term suggestion. Main claim of the paper is the recognition enhancement process developed by us for suitability of highly inflecting, rich morphological languages. This method results in increased speech recognition accuracy with very much reduction in corpus size. It also adapts Telugu words to the database dynamically, resulting in growth of the corpus.
An Improved Approach for Word Ambiguity RemovalWaqas Tariq
Word ambiguity removal is a task of removing ambiguity from a word, i.e. correct sense of word is identified from ambiguous sentences. This paper describes a model that uses Part of Speech tagger and three categories for word sense disambiguation (WSD). Human Computer Interaction is very needful to improve interactions between users and computers. For this, the Supervised and Unsupervised methods are combined. The WSD algorithm is used to find the efficient and accurate sense of a word based on domain information. The accuracy of this work is evaluated with the aim of finding best suitable domain of word. Keywords: Human Computer Interaction, Supervised Training, Unsupervised Learning, Word Ambiguity, Word sense disambiguation
Parameters Optimization for Improving ASR Performance in Adverse Real World N...Waqas Tariq
From the existing research it has been observed that many techniques and methodologies are available for performing every step of Automatic Speech Recognition (ASR) system, but the performance (Minimization of Word Error Recognition-WER and Maximization of Word Accuracy Rate- WAR) of the methodology is not dependent on the only technique applied in that method. The research work indicates that, performance mainly depends on the category of the noise, the level of the noise and the variable size of the window, frame, frame overlap etc is considered in the existing methods. The main aim of the work presented in this paper is to use variable size of parameters like window size, frame size and frame overlap percentage to observe the performance of algorithms for various categories of noise with different levels and also train the system for all size of parameters and category of real world noisy environment to improve the performance of the speech recognition system. This paper presents the results of Signal-to-Noise Ratio (SNR) and Accuracy test by applying variable size of parameters. It is observed that, it is really very hard to evaluate test results and decide parameter size for ASR performance improvement for its resultant optimization. Hence, this study further suggests the feasible and optimum parameter size using Fuzzy Inference System (FIS) for enhancing resultant accuracy in adverse real world noisy environmental conditions. This work will be helpful to give discriminative training of ubiquitous ASR system for better Human Computer Interaction (HCI). Keywords: ASR Performance, ASR Parameters Optimization, Multi-Environmental Training, Fuzzy Inference System for ASR, ubiquitous ASR system, Human Computer Interaction (HCI)
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The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
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Success Factors in Offset Deals: A Case Study Based Examination
1. Heinz Kirchwehm
International Journal of Business Research and Management (IJBRM), Volume (5) : Issue (2) : 2014 28
Success Factors in Offset Deals: A Case Study Based
Examination
Heinz Kirchwehm h.kirchwehm@web.de
Faculty of Business Administration
Turiba University
68 Graudu Street, Riga, LV-1058 Latvia
Abstract
The requests for offset obligations occurs primarily in the area of arms imports and covers the full
range of industrial and commercial benefits that companies provide to foreign governments as
inducements or conditions for the purchase of military goods and services. Increasingly, all major
contracts ask for offset obligations. They are now key differentiators in major contracts and it is a
fast growing market. For the suppliers, offsets are a key differentiator in earning new business
and therefore should be accepted that much accurateness is put on the successful execution of
the offset projects. Nevertheless, it comes to problems during the project phase and sometimes
we’ve the situation that a offset project failed. The aim of this paper is to exam which success-
giving factors are exists in the offset related interaction between buyer, seller and participating
industry. The data for this investigation were obtained from secondary sources which were mainly
accessible via internet. After data collection, an analysis was performed which was based on the
context of this paper and also in connection with the chosen case study: Saudi Arabia. As a result
of this analysis can be derived several success factors, which could be also seen as the
foundation for an optimized execution of offset obligations. The paper concludes with a reflection
of the investigation approach and as well with a classification of the subject offset. Furthermore
the results of the analyzes are summarized and an outlook for further researches is given.
Keywords: Offset, Success Factors, Case Study, Saudi Arabian Offset Projects.
1. INTRODUCTION
Arms trade deals have been transformed over the time into professionally managed economic
processes. At the bottom line of this process, lie offsets; an economic compensation package that
has become a permanent feature of international business. Today, offsets are an inherent feature
of the global procurement system. Often, negotiations to get the best offsets deals obscuring the
focus on the technical aspects of arms procurement (Balakrishnan, 2007).
Increasingly, all major contracts ask for offset obligations. They are now key differentiators in
major contracts and it is a fast growing market. Offset obligations imposed on suppliers can, in
some cases, be as high as 300% of the original contract price (BDSV, 2013). For the suppliers,
offsets are a key differentiator in winning new business. How large the extent of the offset is
already, can be seen by the following numbers. According to a study by the European Defence
Agency (EDA) in 2007, covering the period 2000 to 2006, an average of 93.4% of all arms
imports in the European Union (EU) are linked with offset obligations (Eriksson 2007, Table 3.1,
p. 21). Despite the increased importance of the offset, it comes however to problems in its
execution as the following example shows.
Defence company executives fear they have exposed themselves to millions of dollars of
penalties in the United Arab Emirates after signing investment agreements that may now prove
difficult to fulfil. In September 2013 executives of the United States of America (USA) and
European defence companies and officials of the Gulf state’s offset agency held secret
emergency talks in London to tackle the issue. Despite having resolved past problems with a
2. Heinz Kirchwehm
International Journal of Business Research and Management (IJBRM), Volume (5) : Issue (2) : 2014 29
quietly arranged gentleman’s agreement, this time such an outcome is less assured. When Abu
Dhabi, the most powerful and wealthiest of the Emirates, went on its recent 25 billion USD
shopping spree, defence companies signed ambitious offset agreements – to create local joint
ventures that would create high-paying jobs for locals, while generating profit and export revenue.
Today several companies from USA and EU have significant exposure to the United Arab
Emirates (UAE) having signed deals there recently. But UAE’s demands have become unrealistic
because too many companies are chasing joint ventures in an economy not big enough to cater
for them all in the timeframe set by the regulations. Another point is UAE’s finite ability to absorb
all its offsets which has much to do with the lack of qualified Emiratis. The meeting of defence
executives and Emirati officials in London was one of the first signs that Abu Dhabi is willing to
entertain the companies’ concerns, but without an final result so far. In the meantime first offset
projects had already failed to meet the new target deadlines, but that companies were still waiting
to hear whether the UAE would enforce the corresponding penalties (Hoyos, 2013).
For the avoidance of such problems is it existentially to know the success-giving factors in the
offset related interaction between buyer, seller and participating industry. For the fulfillment of this
aim is the papers divided into the following sections:
• Overview of the most important aspects of offsets
• Review of literature
• An analysis of case study: Saudi Arabia
• Results and Discussion
• Implication and Conclusion
2. OVERVIEW OF THE IMPORTANT ASPECTS OF OFFSETS
2.1 Description and Definition of Offsets
An offset obligation is compensation required as a condition of purchase in either government-to-
government (G2G) or commercial sales of mainly aerospace and defence equipment and as well
services to a country. They can take the form of industrial, commercial and political arrangements
under which suppliers implement specific projects aimed at partially or fully compensating the
buyer's procurement costs or to help the buyer country meet a socio-economic objective. So far
the universally comprehensible description but how can the subject offset defined? The problem
is that offsets mean different things to different people. There is neither one specific terminology
nor one definition of offsets. Each country labels offsets differently. One of the most common
definitions are the one of the USA-Government interagency group from 1986: “(…) offsets are
industrial compensation practices required as a condition of purchase in either government-to-
government or commercial sales of defense articles and/or defense services as specified in the
International Traffic in Arms Regulations.
In defense trade, offsets include mandatory co-production, licensed production, subcontractor
production, technology transfer, countertrade, and foreign investment. Offsets may be direct,
indirect, or a combination of both. Direct offsets refer to compensation such as co-production or
subcontracting, directly related to the system being exported. Indirect offsets apply to
compensation unrelated to the export item, such as foreign investment or countertrade.” (U.S
Department of Commerce, 1997-98, p. 67).
2.2 The Advantages of Offsets
Offsets are used as a key differentiator by procurement agencies of 120 countries around the
world, when assessing bids for high value projects (Brauer and Dunne, 2004). They are seen as
an integral part of the sales process for multi-national companies and, due to their high value and
stringent terms imposed at the outset, can be a significant burden for suppliers who do not have
the capability to deal with them efficiently. If a company wants to bid for a high value project, it
has to be prepared to undertake offset obligations as part of the contract. There are many
advantages for each party:
3. Heinz Kirchwehm
International Journal of Business Research and Management (IJBRM), Volume (5) : Issue (2) : 2014 30
For the buying side:
• Political advantages - the Government can define its socio-economic objectives and use
offsets to deliver part of it.
• Economic development - allows the country to re align its economic and industrial base.
• Creates or sustains local employment opportunities - transfer of key skills and access to
new internationals markets and transfer of work to sustain local jobs.
For the selling side:
• It is a means to differentiate themselves from the competition and earn new business.
• They are a means to access a new market.
• Can also be a way of diversifying into new business areas and new geographic markets.
• Create greater efficiencies through new global supply chains.
2.3 Problems of Not Fulfilling the Offset Projects
Offset deals offers many advantages for each party but in the same dimension it is connected
with dangers. In particular if it does not come to a fulfillment of the subject-matters of the contract.
There are major penalties imposed on a supplier who cannot fulfill his part of the offset contract:
• Loss of credibility as a valued supplier.
• Potential loss of further business.
• Major financial penalties are imposed which just increases the burden and potentially
creates financial loss on the contract.
• Buyer country may refuse acceptance of equipment being supplied under the main
contract in a phased delivery program.
• Reduces the bid to win ratio.
The buyer country also suffers from non-fulfillment of offset obligations:
• Potential impact on its national economy.
• No positive commercial impact on local businesses.
• Loss of credibility in future procurement where offsets may be required.
What this means is that if supplier companies want to be able to bid for these high value
contracts, they need to be able to both offer and fulfil offset obligations. All in all can be
determined, when we take the above mentioned aspects into account, that it is very important to
now the success-giving factors to avoid problems in a offset project.
2.4 Objectives of This Paper
The objectives of this papers are derived from the aim of this paper: the examination of the
success-giving factors in the offset related interaction between buyer, seller and participating
industry:
• To review the extant offset literature regarding the context of this paper.
• To clearly what are success factors and which limitations has a research on this.
• To examine the influencing factors of success for the seller side.
• To examine the influencing factors of success for the buyer side.
• To define generic success factors for the execution of offset-projects.
• To discuss the impact and improvements which brought up by this paper.
4. Heinz Kirchwehm
International Journal of Business Research and Management (IJBRM), Volume (5) : Issue (2) : 2014 31
3. REVIEW OF LITERATURE
3.1 Offset in General
Offsets arise in the late fifties and early sixties of the last century in response to the legitimate
need to rebuild the defense industrial base in Western Europe and Japan. At that time, offset
agreements may have been justifiable for reducing the impact of military equipment purchases on
the budgets and trade accounts of these countries. Offsets have contributed to modernizing the
arms inventories of the alliance, to contributing to rationalization, standardization, and
interoperability, and to strengthening transatlantic ties in the defense of North Atlantic Treaty
Organization (NATO) countries (Neumann, 1985). Today, offsets are used as a marketing tool by
high technology exporters. In the meanwhile, buying governments can use offsets to decrease
the burden of large defense purchases on their economy, to increase or preserve their countries’
jobs, and to improve and maintain their industrial technology base (U.S. Department of
Commerce, 1996).
3.2 Offset in the Context With Successes Factors
The successes factors for executing an offset program are very complex and dynamic. Perfect
negotiation of an offset agreement that is satisfactory to both parties is a necessary first step in a
successful ultimate outcome (Bailey, 1982). However, the definition of a successful offset
agreement can be seen from two different advantage points. The first one focuses on fulfillment
of offset commitments, and the percentage of offsets actually achieved are criteria for success in
offsets (Farr, 1992). The second view discusses success of the offset in terms of results. It could
increase profits by making sales, and enhancing a firm’s image or market position. It means
balancing risks and benefits.
When the buyer’s government is interested in engaging a local firm in an offset program, there
must be a local firm that is willing to make an investment and cooperate with the government’s
policy. Therefore, the desire to invest and the ambition to upgrade on the part of local firms are
also important factors in the success of offset agreements. Both management experience and
international offset experience are critical to success of international cooperative projects (Farr,
1992). If the buyer is not a potential competitor for the seller, the offset will probably be more
successful because sellers would not be likely to share technology with nor buy products from a
potential competitor (Kremer and Sain, 1992). In addition, technical experience and capabilities of
the buyer is one of the important success factors (Weida, 1996; Farr 1992).
Other factors related to the buyer are a stable political and economic environment and a good
relationship with the seller’s government (Tien and Yang, 2004; Verzariu, 1985). The successful
offset of the seller is related to use of a proactive strategy (Weida, 1996) and international
experience (Verzariu, 1985).
3.3 Success Factors and Their Limitations In A Research
In the present literature, success is determined by terms such as performance, success factors
and critical or crucial success factors and became an increasingly relevant subject in business
research (Nicolai and Kieser, 2002, p. 579). Critical success factors are defined as factors, which
represent “(…) for any business, the limited number of areas in which results, if they are
satisfactory, will ensure competitive performance for the organization. They are the few areas
where ‘things must go right’ to flourish“ (Rockart, 1979, p.81, in Trommsdorff, 1990). Basics of
success factor research are provided by scholars in marketing and management research, in
organizational science and in operations research. They are also a central element in strategic
management, even though benefits of success factor studies are disputably discussed (Nicolai
and Kieser, 2002, p. 592).
Models to determine the success of certain business activities changed in the last years from very
holistic models trying to develop an overall framework for success to rather fragmented models
concentrating on specific determinants. The reason behind this change was the inability of holistic
approaches to grasp the complexity of real life business cases and environments (Trommsdorff,
1990, p. 1). Studies in diverse business researches has developed very divergent approaches of
5. Heinz Kirchwehm
International Journal of Business Research and Management (IJBRM), Volume (5) : Issue (2) : 2014 32
identifying, measuring and classifying success factors. Due to the high heterogeneity in research
methods, no prevailing differentiation/classification system dominates literature (Herr, 2007, p.
45).
In general, success factors are classified as subjective or objective; bimodal, multimodal or
continuous (Herr, 2007, p. 41). Bimodal differentiates only between top- and underperformer,
where in multimodal there are further shades of performance. Further differentiation options are
for instance success factors which can be influenced or not (Hildebrand and Trommsdorff, 1989,
p. 16) or internal and external success factors (Trommsdorff, 1993, p. 140). The company can
only influence internal factors. They can be subdivided into general company factors
(characteristics etc.), factors of specific functions (Research & Development, Marketing) and
factors of individuals. External factors on the opposite cannot be influenced by the company and
comprise environmental factors such as location, competition and market potential. Success
factors differ in terms of specificity, precision and causality due to the use of different
perspectives and methodologies (Trommsdorff, 1990, p. 15). They reach from very general
statements on success factors with a high reach to very specific statements with a limited reach
and generalizability (Susen, 1995).
Studies which having performance as dependent variable frequently suffer from methodological
weaknesses. In addition, there are further problems in the nature of quantitative success factor
studies. Correlations in one population might have no impact on a correlation identified in a
certain subpopulation (Nicolai and Kieser, 2002, p. 585). Moreover, successes at understanding
performance differences are self-destructive (March and Sutton, 1997, p. 699). As soon as
information on success factors diffuses among competitors, their impact and differentiation
potential decreases. Uniqueness is often crucial success factor (Porter, 1996, p. 64).
Success factors do not have to be necessarily real in order to lose their impact on competition.
However, real success factors decrease the variation of the dependent variable (March and
Sutton, 1997, p. 699). On top, there is a psychological component in success factor studies, that
good performance ranking lead to self-assurance and favorable treatment; poor performance
rankings lead to loss of self-assurance and unfavorable treatment by others. Hence, positive and
negative feedback loops harden the performance pattern. Nevertheless, all these obvious
weaknesses of quantitative success factor studies can be regarded as their immanent strength.
4. THE EXAMPLE OF SAUDI ARABIA - LEARNING FROM A COMPLEX
SITUATION
4.1 Case Studies – A Proven Methodology
According to Harrison (2002) is a “(…) case study research of particular value where the theory
base is comparatively weak and the environment under study is messy.” Harrison (2002, p. 159).
Both of these criteria were relevant to this paper. The extant literature basis on the subject offset
is quite good but an analysis of several concrete offset projects and their generalization are not to
be given, so that here must be used a case study. By determining that the focus of the paper are
the success factors for the execution of offset projects, the author was able to select the right
case to study. Best case in practice actually means not only the best environment for exhibiting
the phenomenon under study, but also the best from a point of view of ease of access (Ibid, p.
171).
4.2 Criterion For The Selection of This Case “Saudi Arabia”
For this case study examination the country with the largest offset volumes (see Figure 1)
became selected. In principle, any country that tries to expand its industrial base with the help of
offset could be selected.
In the case of Saudi Arabia is it not only the country with the largest currently offset volume it is
also a country that has now a twenty-six year experience in the execution of offset projects.
6. Heinz Kirchwehm
International Journal of Business Research and Management (IJBRM), Volume (5) : Issue (2) : 2014 33
Furthermore, the case Saudi Arabia has the necessary range of problems in the execution of
offset projects, so that the results of the case study could be generalized.
[USD million]
FIGURE 1: Forecast of Unsettled Offset Returns - 2012 to 2022 (Anderson & Moores, 2013, p. 30).
4.3 Description of The Saudi Arabian Offset Framework and Project Execution
4.3.1 The Saudi Arabian Offset Framework
The increasing use of offsets has motivated many countries to set national policies concerning
the use of offsets in defense procurements. There are two different views about offset policies.
The recipient’s view is that offsets are an integral part of the sale itself rather than unrelated
compensation practices. The supplier’s view is that offsets improve the overall value of the sale.
These conflicting views are useful in understanding how governments establish their offset
policies. In addition to the different views on offset we have taken in to account that Offset
programs can be classified as direct or indirect offsets. Direct offsets are those by which the
purchasing country joins the selling country to supplement elements of the underlying purchased
product through co-production, technology licenses and other supply arrangements. Indirect
offset means the selling nation agrees to assist the importing country in its general development
and investment strategy, unrelated to the principal contract item.
Saudi Arabia has opted for the indirect offset approach, as did the other Gulf Cooperation Council
(GCC) countries such as the UAE and Kuwait that followed with their own offset agreements. The
Saudi Economic Offset Program, as it became known, hoped that the offset mechanism would
generate many benefits to the Kingdom. These would be in the areas of industrial development
and economic diversification, spurred on by the inflow of new technologies in sectors such as
aviation engineering, electronics, computer and information technology, as well as utilizing the
Kingdom’s mineral resource base. Other benefits would help with strategic self-sufficiency in
crucial military or civilian sectors, such as defense systems, aircraft repair and modification.
Employment of Saudis and human resource development was also a priority. Finally it was hoped
that a successful offset program would act as a major drawing power to attract other international
companies to Saudi Arabia as a viable center for investment.
7. Heinz Kirchwehm
International Journal of Business Research and Management (IJBRM), Volume (5) : Issue (2) : 2014 34
Saudi Arabian policy has focused on the need to transform the economy and to reduce the
overall dependence of the country on the export of petroleum. Their economic plans prioritize the
development of agriculture and industry; they seek to diversify the production base and to
improve the skill levels of workers for the benefit of the national economy. There is also an
emphasis on promotion of private sector participation and encouragement to the investment of
capital in business ventures within Saudi Arabia (Mitra, 2009)
Saudi Economic Offset Program is under the Deputy Minister of Defense (MoD). Saudi offset
request is that 35% of their contract value is invested in Saudi jobs creation and training,
economic diversification, technology transfer and foreign direct investments in general. Threshold
is 400 million Saudi Reals (107 million USD – 25th Nov. 2013).
4.3.2 The Saudi Arabian Offset Projects
The Saudi offset program started with the Peace Shield programs with the US, the Al Sawary
Program with France, and the larger Al Yamamah program with British Aerospace. The Al
Yamamah Economic Offset Program (I, II and III) is the most complex and longest program; it
began in 1987 and still alive. The French Offset is directed by Societe Francaise d'Exportation de
Systemes Avances (SOFRESA), a private company operating on behalf of the French
government. The USA, in spite of the fact the most of its defense sales to the Kingdom are U.S.
Defense Department Foreign Military Sales, leaves offsets to the private contractors, such as
Lockheed Martin, SAIC, Boeing, and General Dynamics. Foreign Direct Investments are
authorized and supervised by Saudi Arabian General Investment Authority (SAGIA) and they
receive high multipliers according to the most strategic sectors and the Kingdom's priorities (such
as water, electricity, communications, etc.). Saudi's offset market has an enormous significance
for the Saudi non-oil economy since Saudi Arabia spends about 10% of its GDP in defense
procurement (Mitra, 2009).
Peace Shield: This was a programme with Boeing of the USA as prime contractor for
establishment of a ground based air defence facility in which the Saudi government pursued an
offset programme aimed at bringing in high technology transfer content. The Boeing group set up
four Peace Shield offset companies:
• The Advanced Electronic Company, to manufacture the latest and most advanced
military and commercial electronic equipment within Saudi Arabia.
• Aircraft Accessories and Components Company, for maintenance, repair and overhaul of
aircraft components like flight controls, pneumatic fuel and hydraulic systems.
• Al -Salam Aircraft Company for Maintenance, Repair and Overhaul, upgrade and
modification of civil and military aircraft.
• International Systems Engineering is a company that specializes in information
technology, systems integration and development.
Al-Sawary II: This was a programme for purchase of frigates from France for the Saudi Navy at a
cost of 3 billion USD, carrying an offset investment obligation of about 35%, in various fields
including glass, precious metals, smart cards and agro industry.
Al-Yamamah: This was a major defence contract between the United Kingdom (UK) and Saudi
Arabia for purchase of military and civil aircraft, helicopters and ships, with associated training
and support, as well as construction projects, with British Aerospace as the prime contractor. The
total value of this programme was around 7-8 billion USD i.e. about four to six times larger than
the Peace Shield programme. The contract had an investment target of about 1.5 billion USD.
Investments in pharmaceuticals, vegetable oil manufacturing, petroleum, food processing, health
care and environment care equipment were also welcomed. The objective was to acquire fully
developed, proven technology for immediate commercial application. Further projects are
currently under development in the agricultural and manufacturing sectors, together with a
number of downstream petrochemical projects (Mitra, 2009)
8. Heinz Kirchwehm
International Journal of Business Research and Management (IJBRM), Volume (5) : Issue (2) : 2014 35
4.4 Today’s Offset Related Situation In Saudi Arabia
Today’s offset related situation in Saudi Arabia have been somewhat disappointing in terms of
actual projects launched, measured against the magnitude of potential available resources for
investment. Official reasons put forward for the lack of progress is one of identifying good
investment opportunities, or that foreign partners have been unable to obtain reliable local market
data on potential local partners. Some complained about the multiple level of foreign, corporate
and government administration they must deal with, belong today to the past. Since 2000, the
Saudi government has come a long way towards establishing a foreign investment — friendly
organization to smooth bureaucratic hurdles by providing offset advice through a lean
administration under SAGIA. This helped to streamline the application processes for possible
projects in a lean manner. SAGIA’s closer coordination with the regional Chambers of Commerce
and Industry, is also helping to educate Saudi and foreign businessmen on possible opportunities
under the program.
In terms of areas of interest, Offset is now concentrating on priority sectors for the Kingdom such
as petrochemicals, high-tech education and healthcare services. Health management could
become the next focus of the Offset Program, through specialist medical colleges and nursing
schools, nanotechnology research centers and the production of specialist medical equipment
(Ramady, 2006).
Offset financing is available for both Saudi and foreign companies, to reduce the upfront
investment risks. Loans up to 10 million USD per project are available on a seven-year term
basis. The Saudi Industrial Development Fund (SIDF) can also provide up to 50% of a total
project financing on concessionary terms. To add to this, local bank financing has been pioneered
by SABB in conjunction with BAE Systems, to provide further financing for the project on long-
term loan rates. British Aerospace is also willing to provide up to 6.5% of the total equity financing
through its own soft financing loan program, after due evaluation of the project’s feasibility.
The management of the Offset Program is still evolving to ensure that it becomes investor-
friendly, and opens up to a wider segment of Saudi business. With the exception of a few key
Saudi family industrial groupings, a majority of the smaller businesses who could benefit from the
program are either unfamiliar with or are unaware of the offset’s existence. One reason was that
the Economic Offset Office operates as part of the Saudi MoD, which seems to create
psychological barriers to potential investors. The fact that SAGIA is actively sponsoring the Offset
Program has opened up Offset to a wider international and domestic audience (Ramady, 2006).
The deficiencies of the Offset Program in the past was due more to institutional, administrative
and marketing constraints, rather than to financial or technological restrictions as evidenced by
the number of successful non-defense related offset ventures pursued, especially by the UK
Offset Program. With the involvement of SAGIA, and the greater awareness of the program’s
potential by those running it at the MoD, the Offset Program is a real winner for Saudi and foreign
joint venture businesses.
5. RESULTS AND DISCUSSION
Which lessons learned can be derived and generalized from the case study Saudi Arabia
regarding the success factors for the execution of offset projects? For answering this question, at
first a recognizable trend must be derived from the case study so that in a second step this trend
can be more detailed with the different views of the buyer and seller. From the point of view of the
purchasing country, the necessity to gain economic benefits in return for offshore procurement
has driven more than a hundred countries to require direct and indirect offsets. Two separate
trends can be identified: mandatory offsets, with guide lines specified in the bids; and suggested
offsets, when the buyer will favor suppliers which make attractive offset proposals without
specifying the content, to be discussed on a case-by-case basis. In both cases the trend is
towards more and more structured rules and policies.
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5.1 From the Point of View of The Selling Side
From the view of a potential supplier, the pressure of competition brings about a dependence on
the offset requirement. Again, there are two attitudes. In the first, offset can be considered as a
marketing tool, and suppliers can turn the obligation to their advantage, taking a pro-active
attitude. If offset is regarded purely as an obligation, the supplier meets only the offset request,
and does not foresee the offset proposal as an advanced marketing strategy. This is a reactive,
defensive attitude towards offsets and is not conducive to a proper positive approach to
marketing. In either case, offset has become a serious factor.
Today the trend indicates that the completion gets tougher. Offset ratios are increasing from 20-
30% to 100%, and sometimes even as high as 300% because of competition between suppliers.
Multipliers are falling, and can affect the core of the offset (the technological transfer and the
Research & Development provisions). Penalties are frequently imposed and are increasing in
severity. Fulfillment periods are often reduced, but this can have a negative outcome as it can
affect the desired cooperation, at least for the direct offset. The fulfillment of the offset obligation
is being more tightly controlled by the buying side, though this is not a bad thing in itself. But
globally speaking the rules are creating more and more constraints. Where there is a shift
towards more indirect offsets, the eligible sectors are often confined to high technology, and
technology transfer investments, either through direct investment or joint ventures, which are the
most favored.
The contracts include more and more financial components, and counter-purchase is frequently
employed. Offsets have become a worldwide technological, industrial and financial phenomenon.
Requests for offsets are increasing, they are becoming more complex, and suppliers have to
become more involved. Diversified professional skills at a high level are required. At the same
time offsets are a risky operation: there is a loss of technology, and a loss of working hours for
the seller.
Three main factors have to be considered by the selling side: the industrial, the commercial, and
the financial related factors (see Charveriat, 1997).
The industrial related factor: It is necessary to integrate the possibility of technology transfer and
sub-contracting from the very beginning of the product's conception. The design engineers must
anticipate that some parts of the product will have to be produced abroad without affecting the
good health of the company. All future markets will need to be considered so as to evaluate the
possibility of cooperation, the capacity to integrate technologies, and the economic interest of the
country to do so. This is not always an easy task, as the country requiring offset is often asking
more than it can really do. Offsets should not be considered as an obligation, but as a
partnership. The objective is not to do a one-off operation, but to establish a long-term
cooperation. It is also necessary to establish close cooperation with the sub-contractors.
The commercial related factor: It is important to continually monitor the practice and development
of the offset requirements in the targeted customer country and to analyze its economic needs.
The supplier will need to study these needs through its network of contacts and to identify
suitable partners, in conjunction with a local lobbying task force in order to penetrate local
industrial circles which can often influence the decision of the buyer.
The financial related factor: An attractive financial package is also part of a successful deal,
possibly including investments and joint ventures. More and more, the fulfillment of the offset
requires financial engineering involving the financial department of the supplying company as well
as third parties such as banks and investment services companies.
5.2 From The Point of View of The Buying Side
The authorities concerned in the country requiring offsets should define its objectives clearly, in
the framework of a global economic approach and the stage of development of the country. The
government is the only entity having a broad overview of the country's economic situation, and so
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International Journal of Business Research and Management (IJBRM), Volume (5) : Issue (2) : 2014 37
is in the best position to arbitrate between the local beneficiaries of industrial benefits. The end-
user of the import, such as the MoD, should not be the only party to the decision.
If the buying side's offset rules seem to become tighter and more structured, it emphasizes the
need for a balance between the request of the buying party and the offer of the foreign seller.
Each party must find its real interest in the transaction: it is more valuable to ask for less and
obtain more than to ask for more and obtain less. Many countries have succeeded through
offsets to obtain important industrial plants, but once the contract has ended these plants do not
have enough work load. A successful strategy should bring the two parties to analyze fairly the
real interest of the purchasing party, to use technology transfer to establish industries which are
truly competitive, which produce goods and services which will continue to bring benefits after the
completion of the contract, and not to establish industries which require subsidies and which are
not economically viable. The setup of a shrimp farm in Saudi Arabia in 2006 with support from
Raytheon, a USA manufacturer of radar systems and missiles, is a typical case. Praised at first
as a model offset, it reportedly struggled to keep its pools properly maintained in searing
temperatures and eventually went bust. This case shows how important is a permanent dialogue
and exchange of information in the development phases of the projects. This is particularly true in
the case of indirect offset obligations, where new opportunities may be proposed by either party.
5.3 Success Factors For The Execution of Offset-Projects
Beside the in the extant literature named generic success factors such as:
• Willing and able locale partner;
• Strong relationships and good government relations;
• Proactive and experienced actors on the sellers side;
can be the following derived from the case study described above:
• Communication between the parties;
• A good ratio between direct and indirect offset. Indirect offsets more easily satisfy
requirements of the socio-economic development, because larger benefits can be
realized in the civil sectors;
• An adapted evaluation of technology transfer. Technology transfer must be evaluated
with an incentive through reasonable offset multipliers, which give the foreign supplier
more reason to propose a good level of technology. Too high a level of direct offset with
too low multipliers can lead to a non-feasible operation;
• A wide vision of offset. Technology transfer does not only apply to the defense sector.
There is a technical and financial bridge between the military and the civil sector, and
many military technologies can also apply to civil sectors.
5.4 Critical Discussion of The Results
The increasingly asking for offset obligations in arms imports deals requires from the affected
companies a consideration of the relevant success factors for planning and execution of their
offset-projects. This in turn makes necessary the implementation of the found success factors in a
strategy at company level. What brings now an offset strategy which based on the results of this
examination? Firstly, can be assumed that problems such as mismanagement of the offset-
project’s, penalty payments, etc. can be avoided. However, the consideration of the above-
identified success factors is not a guarantee that it comes not to problems in project execution as
a result of unpredictable factors, such as personal animosity, and so on. Furthermore, the
question arises if a final summary of all the relevant success factors of offset can be generated
only from the case study of Saudi Arabia. This certainly requires a wider investigation.
6. IMPLICATION AND CONCLUSION
This case study examination was triggered through an overall research project on the impact of
offset on the business processes of SMEs, which will be published end of 2014. During the
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International Journal of Business Research and Management (IJBRM), Volume (5) : Issue (2) : 2014 38
necessary Pre-Study for this research project, first indications appear that it is existential for
offset-affected companies to know which success factors are existing for an optimized execution
of offset obligations.
The used methodology of a case study examination (Best Practice Approach) analyzing the
worthwhile and replicable practices likely to improve the way an organization operates i.e.
analyzing factors likely to contribute to success or failure. The primary aim is to identify
techniques/factors that can be replicated elsewhere. Especially the in this case used Success
Case Study looks at those practices/factors that have proven successful in terms of outcomes.
Involves isolating success factors and likely causes of failure.
Due to the selected size of this case study could be the result represented only an overview, but it
adds to the already identified factors in the extant literature. During the work on this paper could
the author observe again that the available literature on the subject offset is very limited in
particular to its success factors. It is still a niche subject. Nevertheless dictates the constant
increase of offset obligations that affected companies have to engage them with this subject and
have study some specific aspects of them.
The aim of this paper is to exam which success-giving factors are exists in the offset related
interaction between buyer, seller and participating industry. The implications of this examination is
the concentrated display of success factors for an optimal offset execution. The factors which out
are enabling companies to optimize planning and execution of offset-projects and due to this fact
can be preventive additional cost.
From the present study could be summarized the following:
• A good offset policy is one that respects the economic situation of the country requesting
the offset and the situation of the country wishing to make the sale.
• The difficult task in managing an offset policy is to reach a just balance between the
obligations to be imposed, and the cooperation it seeks to establish.
• Countertrade and offsets can be used as a tool of development and positive commercial
cooperation.
• Five key words: realism, anticipation, dialogue, moderation, and imagination.
• A good offset should give a competitive edge that could be critical.
For a further research on the success factors of offset could be of interest an examination of the
internal factors at the seller side, here in particular the interplay of the success factors at the
involved business processes. On the buying side could be of interest to investigate the success
factors in the institutional interaction between the authorities and the connection to the local
participating industry and their different interest groups.
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