Analysis Of RSA Algorithm Communications Essay

Analysis Of RSA Algorithm Communications Essay To protect and hide data from malicious attacker and irrelevant public is the fundamental necessity of a security system. So for this reason for hiding data many cryptographic primitives like symmetric and asymmetric cryptography, digital signatures, hash functions etc. The symmetric cryptography consists of same key for encrypting and also for decrypting the data. Where as asymmetric cryptography takes advantage of a pair of keys to encrypt and decrypt the message. These keys are public key and a private key. The key which is distributed to other and which is publicly known is known as a public key and the key which is kept secret is known as private key. These two keys are needed simultaneously both for encrypting and decrypting the data. Public key will encrypt the data where as private key is used to decrypt the data. Asymmetric cryptographic should satisfy following properties. They are: Key generation process must be computationally efficient. By using the public key of the receiver the sender must be able to process the cipher text for any given message. By using the private key the decryption of cipher text into plain text should be done by the receiver. It will be impossible to compute like encrypt or decrypt the data without either of the key. RSA was designed by Ronald Rivest, Adi Shamir, and Len Adleman. It is an asymmetric cryptographic technology. As in asymmetric cryptographic encryption the public key is known by everyone where as the private key is kept undisclosed. For decryption of data which is encrypted with the public key, private key must only be used. Integers between 0 to n-1 where n is the modulus are taken as cipher and plain text. This n is generally 1024 bits. But the suggested length of n is 2048 bits instead of 1024 bits because it is no longer secure. Algorithm of Key generation: The following steps describe how a set of keys are generated. Two different prime numbers are selected which are not equal. Say p and q. this numbers are of same bit length. Determine modulus n where n=p.q Process or calculate à Ã¢â‚¬  (pq) =(pà ¢Ã‹â€ Ã¢â‚¬â„¢1)(qà ¢Ã‹â€ Ã¢â‚¬â„¢1). Here à Ã¢â‚¬   is totient. Select an integer which is public exponent e, such that 1 Calculate d. This can be calculated by using modular arithmetic. This should satisfy de=1. Now this ed-1 should be evenly divided by (p-1)(q-1) . Here (n,e) is the public key which is used for encryption and (n,d) is a private key which is used for decryption. Encryption: The following steps describe the how encryption is done in RSA algorithm. It is illustrated with an example where in two imaginary characters are described Alice and Bob. As we know that public key is (n,e) this is transmitted by Alice to Bob by keeping her private key secret. A message say M is wished by Bob to send to Alice. Before sending the message M it is converted into an integer 0 Get the public key which is (n,e) Plain text integer is represented by m. Calculate cipher text as shown c=me Cipher text c is send to the receiver. Decryption: Now when Alice receives the message sent by Bob, she regains the original message m from cipher text c by utilizing her private key exponent d. this can be done by cd=m (mod n). Now she can recover M once she regains m by using Padding scheme. This is shown as cd = (me)d = med (mod n). Since , med = m1+kq(n) =m(mq(n))k =m (mod n) . By this we get the original message back. This can be shown in following steps. Private key (n,d) is used by receiver to calculate m=cd mod n. The plaintext m is extracted. Computational issues of RSA: Selection of the two prime numbers p q: In the very first step p is selected from a set of random number. After this it is ensured that p is odd by setting its highest and lowest bit. Finally p is made prime by applying a Miller Rabin algorithm. Choosing the value of e: By choosing a prime number for e, the mathematical equation can be satisfied. That is gcd(e,p-1) = q. Among these three numbers which are 3, 17 and 65537 e is chosen for fast modular exponentiation. Calculating the value d: It is determined by Extended Euclidean Algorithm which is equivalent to d = e-1 (mod q(n)). Modular exponentiation algorithm: This step of RSA is calculated by following mathematical equation: AB mod n = ( Security of RSA: RSA cryptosystems security system is not so perfect. Many attacks are present like Brute Force attack, Timing Attack, chosen Ciphertext attack and Mathematical attack are some prominent attack. Brute Force Attack: In this attack the attacker finds all possible way of combinations to break the private key. If the length of the key is long then it will be difficult for Brute force attackers to break the key as the possible combinations will exponentially increases rather then linearly. RSA uses a short secret key to avoid the long computations for encrypting and decrypting the data. If the key is long the process will become little slow because of these computations. Since RSA uses a short secret key Bute Force attack can easily break the key and hence make the system insecure. Mathematical Attacks: Since RSA algorithm is mathematical, the most prominent attack against RSA is Mathematical Attack. In the following way an attacker can attack the mathematical properties of RSA algorithm. * By finding out the values of p and q which are prime factors of modulus n, the à Ã¢â‚¬  (n)= (p-1)(q-1) can be found out. By finding out this it will be easy to find d = e-1(mod à Ã¢â‚¬   (n)). d = e-1(mod à Ã¢â‚¬   (n)). Can be directly calculated by determining the value of totient à Ã¢â‚¬  (n) without figuring the values of p and q. d can be figured out directly without first calculating the à Ã¢â‚¬  (n). This attack can be circumvented by using long length of key. By doing this it would be difficult to find out prime factors. That is the reason why it was recommended to use size of modulus as 2048 bits. Timing Attack: one of the side channel attack is timing attack in which attackers calculate the time variation for implementation. Attackers can easily determine d by calculating the time variations that take place for computation of Cd (mod n) for a given cipher text C. Many countermeasures are developed against such timing attacks. Following explains the way which this attack can be counteracted: If the time for all computations is made constant this attack can be counteracted but the problem in doing this is it can degrade the computational efficiency. By artificially showing noise to the attacker which can be produced by including a random delay to the exponentiation algorithm. This noise is virtual but appears real to the attacker. If we multiply a random number to the cipher text it will prevent the attacker from bit by bit scrutiny. Chosen Ciphertext Attack: RSA is susceptible to chosen cipher text attack due to mathematical property me1me2 = (m1m2)e (mod n) product of two plain text which is resultant of product of two cipher text. For example c = me (mod n) which is cipher text is decrypted in following steps: Calculate x = (c x 2e) mod n. Receive y = xd (mod n) by submitting x as a chosen cipher text. Multiplicative property is then applied which is: x = (c mod n) x (2c mod n) = (mc mod n ) x (2c mod n) = (2m)c mod n. By this attacker can calculate m by using y = (2m). By padding the plain text at the implementation level this restraint can be easily solved. Several versions of RSA cryptography standard are been implemented. PKCS Public Key Cryptography standards are latest version. The previous version was proven to be porn to Adaptive Chosen Ciphertext attack (CCA2). This adaptive chosen cipher text can be prevented by latest version which is Optimal Asymmetric Encryption Padding (OAEP). Bellare and Rogway introduced this OAEP. To process the plain text before encryption the OAEP uses a pair of casual oracles G and H which is Feistel network. Following two goals are satisfied by OAEP. OAEP PADDING PROCEDURE Due to addition of random numbers the probabilistic scheme are being replaced instead of the deterministic encryption scheme. If the attacker is unable to invert the trapdoor one way permutation then the partial decryption of the cipher text is prevented.

Negotiation: Game Theory

Negotiation| | The use of Game Theory could be a powerful force in negotiation. Investigate the different ways that Game Theory can be used or manipulated to change an outcome in a negotiation. | | Negotiation| | The use of Game Theory could be a powerful force in negotiation. Investigate the different ways that Game Theory can be used or manipulated to change an outcome in a negotiation. | | Quentin Dutartre Yash Ruia Damien Canneva Kilian Bus Emilien Allier David Schil Quentin Dutartre Yash Ruia Damien Canneva Kilian Bus Emilien Allier David Schil Contents Introduction2 What is the Game theory? Theory4 Making commitments: promises and threats4 Basic situation4 Unique Win/Win situation5 Commitments and side payments5 Prisoner’s dilemma7 The Simplest Game: Two Person with a Fixed Pie8 Tacit Barganining8 How to act during a negotiation9 Breakthrough Strategy9 Tactics10 Limits11 The modelisation11 The interpretation12 Conclusion13 Sources13 Introduction Our group decided to work on the topic three: â€Å"The use of Game Theory could be a powerful force in negotiation. Investigate the different ways that Game Theory can be used or manipulated to change an outcome in a negotiation†.The modern Game Theory was created in 1944 with the book â€Å"Theory of games and economic behavior† by Oskar Mogenstern and John Von Neumann. It was also developed a lot in the 1950’s with several studies by John Nash. After our seminary about negotiation we thought it would be very interesting to make some research about the Game Theory. Indeed, we made some researches on the Game Theory in our first year in IESEG in our economic classes. That is why we were a bit surprised to see that this theory could be also used in a negotiation process to analyze it.It seems to be obvious that using the concepts of that theory could change the course of a negotiation and be understood as a manipulation or just a skill to achieve the goals of the agents in a negotiation . We decided to divide our work in three parts. First, we will define the Game Theory and make some examples. Secondly, we will make an synthesis on how to act as a negotiator during a negotiation. Finally, on the third part we will talk about the limits and the interpretation we can make on that subject. Generally, we can say that our goal is to extend the concept of Game Theory.Indeed, we imagined it only in an economic vision and we want to extend it to a negotiation vision. What is the Game theory? The Game theory is a method to study the strategic decision-making. More formally, it is  «the study of the mathematical models of conflict and the cooperation between intelligent reasonable decision-makers. † An alternative term suggested  «as a more descriptive name for the discipline † is the theory of interactive decision. The Game Theory is mainly used in the economy, the political science and the psychology, as well as the logic, negotiation and the biology.The s ubject of the (landed) at first sent zero-sum games, such as the earnings(gains) of a person equal exactly the clear(net) losses of the other participant (s). Today, however, the Game theory applies to a vast range of relations of class and developed in a term of umbrella for the logical side of science, to include both man and non-people, as computers. Classic uses include the direction of the balance in numerous games, where every person found or developed a tactics which cannot successfully better its results, given the other approach.Theory Making commitments: promises and threats The first assumption to be made is that the goal of any negotiation is to enlarge the pay off for both sides, and in most cases agreements has to be made in order to achieve getting a Win/Win situation. These agreements can be made by making either promises or threats. In both cases, the idea is to benefit from an enlargement of the total pie obtained by making commitments. Basic situation In the follo wing example, both sides are looking forward to getting the better pay off.At first sight, Neil seems to have a better hand since he is able to have payments by using both of his strategies while Bob can only win by using strategy 1. It is obvious that Neil would better use strategy 1 in order to maximize his payoffs expectations. But Bob would probably prefer using his second strategy than winning less than Neil, though it would result in a Loose/Loose situation. Bob will probably threatens to take strategy 2 if Neil chooses the first one. The only way to obtain a Win/Win situation though is for Neil to make a commitment: he must promise to choose 2 if Bob chooses 1.This is the most basic commitment example. Unique Win/Win situation In the following one, there is one only scenario which allows the two player to win, but commitments must be made buy both sides in order to reach the best situation for both. Here, Neil will probably initially chose strategy 1 in order to avoid loss, b ut he won’t be able to gain anything though. Bob would probably choose to maximize his payoffs expectations by choosing the first strategy. Finally, neither Bob nor Neil will get payoffs, so that we obtain a Loose/Loose result, which is not acceptable.They both have to promise to choose the second strategy in order to win. Commitments and side payments In this last example, it is not possible to reach a Win/Win agreement but by making side payment. Side payments allows to change the total pie, and though to reach the targeted situation. In this particular scenario, initially Neil would choose the first strategy, which is not acceptable for Bob in both cases. Moreover, Bob can’t threaten Neil to choose either a strategy or another. This is a very bad situation for Bob.He will probably choose strategy 1 in order to minimize Neil’s payoffs, and though gain nothing. But, fortunately he can also promise side payments, which could change the total pie. As a matter of fact, if he pays $2 for Neil to pick strategy 2, we create a Win/Win situation which will allow both sides to get payoffs. Through this part we’re going to apply the concept of promises and threats into a concrete situation of negotiation. We set the situation, we have two participants, one will be selling an apartment two a possible buyer. At first sight, the man in power is the seller as he fixes the price.Nevertheless, the buyer can use the threat technique, saying he won’t accept the offer. This decision would place our two actors in a lose/lose situation. Indeed, if the buyer is in the situation of losing the negotiation he will choose to make his opponent loose too. Thus in order to obtain a win/win situation, the seller must not be too greedy to convince his customer. In another way, if the seller wants to be sure to succeed, he can promise the buyer an offer that will automatically put the buyer in a state of winning. Prisoner’s dilemma The prisoner†™s dilemma is one of the most famous games.It is quite easy to understand and gives a good idea of different possibilities in negociation and the interest of cooperation. The main idea is that two burglars get caught by the police after a robbery, and they are interrogated separately. They have two options: either they say that the other guy is guilty or they say he’s not. Considering one’s interest separately, the best situation for him is to use the guilty option while the other chooses the not guilty option. In this case, the first guy will get only 1year of jail while the other one will get 5 years.Therefore it is very risky to choose the not guilty option. If we consider the two as one, the most interesting situation is that both of them choose the not guilty option, whereas the worst is both choosing the guilty option. This is one of the simplest examples of a Win/Win, Win/Loose or Loose/Loose situation. They can both act individually using the guilty option, a nd get 3 years of jail each, or they can cooperate, use the not guilty strategy and get only 2 years both. The major thing to be remembered is that trust is crucial in negotiations.It leads to the only Win/Win situation possible and credibility is needed to avoid defection. The Simplest Game: Two Person with a Fixed Pie When think of people negotiating, a very simple scenario comes into mind, where one person wins and the other fails to win. This is a very simple scenario and one of the first that game theory attempted to solve. Let’s take a very simple example where Nathan owes Barbara some money and they can’t decide on how much. Both of them have two options available to them, but the final decision depends not only on what strategy they choose, but also on what strategy is chosen by their opponent.Nathan will choose to pay a minimum of 40 and Barbara will want to take the maximum of let’s say, 60. This is a very simple scenario and one can easily figure out that the outcome will be 50. 40| 50| 50| 60| However this illustrated a very important concept called the Minimax theorem which tells us to pick the strategy the minimizes the opponents maximum gain. Nathan will pick strategy 2 in order to not pay 60 while Barbara would pick strategy 1 to avoid only getting paid 40. The more variables one has, the more complex the game becomes to solve.Therefore it is a good idea to have lesser number of variables, similarly we need to have a clear idea of what we need in order to reduce unimportant options. Reducing the number of variables one has is always a good idea, even if one is not really reducing the number of variables it is important to show to the opponent that you only have some variables to win. For example, when a customer asks for something one can refer to standardized guidelines or not having permission from the boss to reduce variables. Tacit Barganining. This term was first coined by Thomas Schelling.Who did some experimental res earch and found out the following facts: * When asked to pick any number, 40% chose the number 1. * When asked to pick any amount of money almost all people chose a figure divisible by 10 * When people were told that they had to meet someone else – but had to guess the time – almost all chose noon. We often succumb to a lot of convections even without doing it consciously. It is normal for people to follow the laws of fairness and equilibrium; no one wants to be seen as deviating from the norm.Therefore its usually a good idea to make the first move in a negotiation so that you can create the framework and make clear that you are precedent. In a negotiation, taking the initiative doesn’t seem to be the best thing to do when you start it. Indeed, when you ask somebody to start negotiations, generally he is reticent to do so. Nevertheless asking the first proposal allows you to be able to negotiate on this basis, that’s why you should do it first. Establish a precedence as we said before is a tool to start negotiating. The thing is, there is always a argaining whereas you don’t even notice it. It’s called the â€Å"tacit bargaining†. How to act during a negotiation Breakthrough Strategy In order to reach your goals through using the game theory to negotiate you will need to apply a strategy you will respect during the entire negotiation. That’s why we can use the breakthrough strategy. This breakthrough strategy is based on five steps and permits to solve issues during the negotiation process. Its aim is to offer the two parties the possibility to work together rather than appearing as two adversaries.Nevertheless, this strategy needs to be remembered and followed as it wouldn’t be the intuitive reaction. These five steps are to firstly stay focused. In fact, the goal is to have your mind clear and not be parasite by your emotions. You need to have an overall view on the entire negotiation and to not get lose on a specific point. Then, you need to accept the counter-party. Indeed, being as empathic as possible is very important throughout the negotiation process as creating a climate of exchange is primordial to obtain a win/win situation.This can be perfectly illustrated by the prisoner dilemma. Both parties searching for their proper interest without regarding his opponent situation will lead to lose/lose. Thereafter, the participant will reframe the negotiation. It is based on rephrasing the opponent arguments enhancing the common interest. This will permit that both side look for the fairest deal possible. Once again you need to look through the other negotiators eyes in building a â€Å"golden bridge. This means trying to understand if, in his situation, you will accept the deal as it is now.You will therefore see when to finalize the negotiation in order that the counter-party doesn’t feel pushed in the conclusion. Finally, to make it hard to refuse by using the p ower game as threats or bluff is the most common mistake made at the end of the negotiation. In fact, by using lowering his chance to refuse you also lower his chance to accept the deal. Thus, by having used the four precedent steps, you have create a negotiation climate that will present your golden bridge as the best common interest for the parties. Tactics Tactic is about anticipating what the negotiator is going to do.You have to prepare several strategies in order to obtain what you want from these negotiations. First, there are the behavioral tactics, whose aim is to differentiate the negotiation in its role of representation of a third person or a company and the person who plays this role. Negotiators when using these tactics can operate in many ways. They can use a spokesman for representation, or the executive person or a delegated representative. You have to create a positive frame if you want to obtain concessions from the person you’re negotiating with.Moreover, you have to establish limits in your area of negotiation. Anchoring is a tool that has to be established in order to be able to make adjustments between the two parties in the future. Adjustments and anchoring are important because they have an impact on negotiators. They lead them to what is possible and doable during the negotiation. Another mean is to influence the negotiator as an individual. As if, the negotiator is using its unique and common sense during an argumentation. Some tactics can be based on ethic and morality.If you think the proposition is unfair or contrary to the usual behavior or even illegal, you can use these tactics by pointing up the fact that the proposition is unethical. Tactics is not only about the human and the social part; there is also a part of a negotiation that is about the balance of power between the two parties. The main goal of this tactic is to let the other party know that accepting one request would have an important impact on the cost and t hat we are going to make them pay for that. The deterrence impact shouldn’t be ignored in a negotiation.Commitment in a negotiation is of paramount importance. It is one of the three strategic strikes with bluff and threat. The thing is that negotiators have naturally the tendency to commit themselves into the negotiation. Instead of trying to develop its requirements and modifying its position, he will start conflict in order to put pressure on its opponent. It puts the opponent in a tough position; accept our request or he will have to face the failure of the negotiation. And that’s exactly what he wants to avoid. Otherwise, its role would be useless.This tactic can lead to a dead-end, but it’s a stuck situation that doesn’t consider the balance of power between the two parties. Threats are different from commitment as they are more flexible and have a longer range of existence. They are various as they can be explicit or implicit. They are the direct c onsequences of the failure of negotiations and can be introduce by the company of the negotiator. They have to be used sparingly because threats without any actions discredited any negotiators and especially its company. In the future, it would have an impact on the approach of the opponent regarding the company.Limits The study of a complex negotiation situation with the help of a model places two major complementary problems: the modeling itself (the passage of the reality to a version idealized of this reality) and the interpretation (inverse approach) The modelisation Modelisation is a very hard job. We can resume it as the stage of transforming reality problem into a matrix. The modelisation consists in creating a representation simplified by a problem: the model. But as every transformation, problems could be highlight. Some characteristics, some influence can be overestimated or less estimated. How to model the respective influences of the parameters (functional dependence, i ndeed if such or such parameter exercises one dominating influence or on the contrary, unimportant in first estimate, etc. ) * How measure the values of the parameters (variables of situation or history of the previous negotiations for example) and how fire of a model of the theoretical results (or of experimental simulation). And at least the human factor is very difficult to imagine and to predict. The process of modelisation tries doing it.But through his experience, his character, his objectives or his approach, each human is different. So a model would try to simplify it but of course will make errors. The interpretation Indeed, we already possess a completely realistic model: it is the real world itself. Yet this model is too much complicated to be understandable. †¦ It is only when a simplifying postulate ends in a model which supplies incorrect answers to the questions which it is supposed to answer that its lack of realism can be considered as an imperfection. †¦ Otherwise, its lack of realism is then a virtue.In that case, the simplifying postulate allows to isolate certain effects and to facilitate the understanding. How to interpret the results supplied by the model, suppose that there is (problem of adequacy of the model to the reality). Does such result of the model express suitably the real situation, in spite of the simplifications and the untidy parameters? Like the modelisation, Interpretation is a tuff job. The human factor is a hard to forecast. Game theoretic predictions may not be confirmed in experiments (the real life). Is this a fault of game theory? Yes: people are simply not rational †¦ * No: maybe we get the information technology wrong (absentmindedness), or payoffs are not specified correctly (altruism). The advantage of assuming rationality is that we can think through situations (how can irrationality be modeled). The advantage of assuming selfish behavior is that it is â€Å"unique† (what means altruism, i nequity aversion etc. ). Conclusion As a conclusion we have studied all the aspects about the Game Theory and that helped us to understand that it is a useful tool not only about economic classes but also for negotiation.Indeed, we have made a link between the different sorts of Game Theory and the different cases you can face during a negotiation process. As it is often the case, we found that one of the strongest conditions to succeed in a negotiation is to be able to adapt your body language and attitude according to the characters and features of your contradictor(s). Using the Game Theory could help you to make a strategy and to adapt your goals to any case which is in front of you.However, it is never possible to make a perfect prediction of how the person who is just in front of you and it is very important to be cautious enough, that means that you must rank the risks of any strategy you will try during a negotiation. We can take a final example: You start a meeting being su re you will use the theory of the prisoner’s dilemma because you thought you perfectly understood the mood of the other agent. Imagine one second that you made a very big mistake because you don’t know that the person in front of you has just been left by his wife (for example) and he is very upset.That situation is a good illustration of the risks of using the Game Theory as a perfect and trusting strategy for negotiation. We can finally say that using the Game Theory can be very positive in a negotiation and you can consider it as a very useful tool. However, we have to be very careful because some parts of this theory can be assimilated as a manipulation and this theory is not a miracle solution: every negotiation is different and you can’t always predict the features and mood of your contradictors. Sources * http://dlhoh. hubpages. com/hub/Negotiation-Skill-Dilemma * http://hbswk. hbs. du/item/2773. html * http://www. digitaltonto. com/2009/game-theory-guide -to-negotiations/ * http://www2. warwick. ac. uk/fac/soc/economics/staff/academic/muthoo/publications/bargwc. pdf * http://www. negotiation. hut. fi/learning-modules/IntroToGTAndNego/index. html * http://www. economist. com/node/21527025 * http://www. google. fr/url? sa=t&rct=j&q=negotiation+game+theory&source=web&cd=9&ved=0CHoQFjAI&url=http%3A%2F%2Ffaculty. haas. berkeley. edu%2Frjmorgan%2Fmba211%2FCourse%2520Overview. ppt&ei=vgibT_juBoek4AS8ys2pDg&usg=AFQjCNF5FpD-1CO77pM9Ae0oXFzY0SeGCQ&cad=rja

Benefits for Mondelez International to Expand to Myanmar - Free Essay Example

Sample details Pages: 11 Words: 3292 Downloads: 8 Date added: 2017/06/26 Category Marketing Essay Type Case study Level High school Did you like this example? 1.0  INTRODUCTION This is a report that studies the potential reasons and benefits for Mondelez International to expand to Myanmar. Mondelez International Inc. is a multinational company that revolves around selling well-known snack food brands around the world. Don’t waste time! Our writers will create an original "Benefits for Mondelez International to Expand to Myanmar" essay for you Create order Some of these food brands include Oreos, Tiger, Cadburry, Milka, Toberone, Jacobs as well as Halls which are commonly available even within Malaysia. The company has a market presence in every region of the world although it still has markets not yet expanded to. Take for example, in Southeast Asia the company has yet to have a direct presence in Brunei, Laos, Cambodia and including Myanmar either for reasons of lack of foreseeable profits or discouraging political risks. Myanmar, at one point in time, was a reclusive country with nearly 50 years of political and economic isolation. Today, it is a developing country that is currently undergoing reforms aimed at encouraging foreign direct investment (FDI) (Wong, 2014)[1]. The international community has recognised the reform efforts taken by the Myanmar government and has resulted in the ease of decades-old sanctions towards it particularly by the US (United States) government, European Union (EU), and the Canada (Burke, 2012)[2]. The ease of business entry into the country due to the reforms and removal of sanctions has meant that now is a good time to enter the market and tap into opportunities once untouchable in the country. In fact, many multinational companies have not wasted any time in entering what they see as a gold mine for FDI. Microsoft, Coca-cola, Nissan, and Baker Mckenzie along with Mondelezs direct competitors Unilever and Nestle are but some of these MNCs to participate in the gold rush for opportunities. Although still behind countries like Singapore, Malaysia and Indonesia, its growth economically has been staggering in the past few years due to the massive amounts of FDI. The growth in FDI brings in an increase in the purchasing power of the average Myanmar citizen which means that there is still a growing market base that is fresh for brand establishment and plenty of undeveloped land for low-cost production facilities. Company Background Mondelez Internationals headquarters ar e in Illinois, United States and its current CEO is Irene Rosenfeld who was also the CEO for Kraft Foods Inc. A very intriguing aspect of this company is the fact that despite being in an age where mergers, acquisitions and joint ventures are common, this company was the result of a demerger that took place in 2011. Based on the Forbes (2013)[3] rankings, the demerger seemed to have paid off since the company in 2013 had a market capitalisation of US$50.1 billion along with being 182nd in the Forbes Global 2000 but most of all the company moved up to 52nd from 63rd last year in the Forbes Innovative Companies. Mondelez International was originally part of Kraft Foods Inc. which had a wider focus that also sold grocery products (Schaefer, 2011)[4]. The demerger split Kraft Foods into two companies, one (Kraft Foods Group that handles grocery manufacturing and processing in North America while the other, renamed Mondelez International, revolved around selling every snack food brand the original held prior to the demerger. This allowed Mondelez International to adopt a more central focus to its strategy that revolved around a more narrow line of products. Employees prior to the demerger settled on the word Mondelez for the snack food company which combines the words monde (world in Latin) and delez (delicious in short form) as mentioned by Toole (2012)[5]. Tooles article further goes on to mention that the name will not be used in making new products but will instead act as an idea that the companys own snack product brands can be associated with. Since it officially is a part of the original company that existed since 1923, Mondelez International thus inherits all resources and rights to assets and snack food brands that Kraft Foods possessed worldwide even though it has officially only existed since 2012. Objectives The objectives of this report are to: Assess Mondelez Internationals capabilities in expanding to developing countries Evaluate Myanmars environment to determine feasibility of expansion Determine a feasible method to enter the market Identify methods to handle risk effectively Scope of Report To achieve the stated objectives, the report will cover an environmental analysis of Myanmar through the use of external analysis frameworks such as PESTEL and Porters Five Forces. An internal analysis of Mondelez International strengths and weaknesses is the second half of the circle that will be compared with the environment analysis. This will determine the feasibility of market expansion and filter out the most suitable mode of entry for the company. Last, but not least, risk management practices will also be recommended within the report as a means of reducing Mondelezs exposure to risk in the country. 2.0Literature Review Transition Economy Factors affecting the overall performance of a multinational company (MNCs) are vastly different when comparing transition economies to developed and developing economies. For one, a transition economy is a market that entirely relies on the recent opening its economy to generate growth through foreign direct in vestment (FDI). Transition economy will eventually grow into a developing economy but until then it is a market characterised by prevailing levels of hostility, dynamism and complexity that surpass developing ones. Luo and Peng (1999)[6] indicates that transition economies often still have weak regulatory systems, underdeveloped factor markets as well as poor property rights protection by current standards and this contributes to the market characteristics mentioned earlier. Therefore, environmental factors of a transition economy can greatly affect the MNCs performance in that economy. Take for example, back in 1989 China experienced the Tiananmen Square incident that triggered the mass evacuation of expatriate personnel for many MNCs. This incident shows how transition economies such as China back then are filled with uncertainties that MNCs have to deal with. Bribery Due to that uncertainty and weak regulations as well, bribery is also commonplace within the transition e conomy and that MNCs must be willing to engage in these activities in order to gain traction in performance. Zhou and Peng (2011)[7] affirmed that the downfalls of bribery will not affect large firms such as MNCs. This seems to attribute to the findings that large MNCs are less likely to get caught conducting bribery compared to small firms. Thus, large MNCs, who have little risk in the practice, will have the incentive to engage in bribery in order to improve its performance in the transition economy. Furthermore, in doing business in transition economies, MNCs (agents) must also deal with its government (principal) in a principle-agent kind of relationship. Peng (2000)[8] mentions in comparison to domestic firms, MNCs have greater bargaining power in setting the control levels of the government. The study refers to the time China turned into a transitional economy from the 1970s and had to manage the flow of FDI by MNCs typically by joint ventures. Its government encouraged FDI to gain MNC resources while the MNCs conducted FDI to tap into the market potential of China resulting in conflicts of interest. Therefore, the level of control transition economies attempt to impose will affect MNCà ¢Ã¢â€š ¬Ã¢â€ž ¢s performance significantly. Organisational Learning From the past few paragraphs, we have concluded that in transition economies, multinational companies face greater levels of environmental turbulence stemming from organisational structures, regulations and markets that are unfamiliar, inconsistent and fragmented respectively. In this case, a multinational companys ability to learn and adapt to the ever-changing market will also contribute to boosting that MNCs market performance. This concept is known as organisational learning and research over the years recognises it as a critical component that influences the performance of international expansions. Luo and Pengs (1999)[9] research state that experience is the primary contributor to organ isational learning. Experience in this case is referred to as the intensity and diversity of exposure to particular market environment. Their research further goes on to mention that MNCs engaging in a diverse range of activities and for lengthy periods of time gain greater experience effects and that such experience are more significant when operating in transition economies. Overall, greater levels of organisational learning gained from the experience of operating in a transition economy will inevitably facilitate the rise of the MNCs performance in that economy. Speaking of which, experience from a particular economy is typically gained from being in that economy for a long period of time. The period of exposure gained by being in a marketplace the earliest can be considered as an intangible competitive advantage that cannot be imitated by rival firms. The longer the experience effect is in the market, the better the MNC can evaluate its risk and reduce its uncertainties as we ll as develop valuable ties with local partners in that economy while effectively establishing the rules of competition. In order to be the longest player in the game, you have to be the first to enter it, and that brings us to à ¢Ã¢â€š ¬Ã…“First Mover Advantages. Advantages MNCs gain for being pre-emptive to enter the market, Luo and Peng (1998) the benefits to the MNC as being able to dictate the entry barriers for following firms, obtain scarce assets within the economy and effectively gain technological leadership. They further elaborate those MNCs that pursue first mover advantages are not in the market for short-term profits, but instead seek to establish long-term gains through secured and large market-share dominance of the economy. Whether the first-mover succeeds or fails is another story, but in the case of transition economies, the opportunity to securely establish brand recognition in a brand-fresh market is one that is hard to pass up. Conclusively, these stud ies show the key importance the environment of a transition economy plays in addition to the usual capabilities the multinational company has in the prospect of performance within that economy. Both the environment of the country and the state of the industry are to be included within the transition economys environment. These factors all eventually beg the question of How can a firm take in all of these variables in order to arrive at a suitable strategy that can directly translate into greater performance in transition economies? Perspectives of the Strategy Tripod Due to the depth of research covered in industry-based views and resource-based views, it is most definite that MNCs expanding to foreign markets will have to consider the effects of competition and the firms own capabilities in formulating feasible strategies. To elaborate, the industry-based view is a perspective that considers the effects of industry conditions on a firms strategic performance. This of course r efers to competition levels within the particular industry of a country the MNC is intent on participating in. The effects are noticeable when market entry barriers set by the first-movers of an industry can force a change in market entry strategy. Looking from a resource-based perspective, this view justifies that the internal conditions of a firm will affect its strategy and performance. No one firm is similar to another and hence why strategies employed by one firm will not necessarily work out the same way for another. Overall, strategic management dictates that a firms strengths and weaknesses in relation to market circumstances will eventually decide the final strategy to be executed. Kogut (2003)[10] criticized both perspectives for leaving institutional factors of a market, both formal and informal, in the background when it is these factors that set the context of competition and the nature of the firms that operate in an industry. Peng and Jiang (2008)[11] state that the institution-based view of strategy formulation is crucial when it comes to operating within emerging economies as the nature of institutions both formal and informal affect the context of competition as well as the nature of firms operating within a market. This perspective views the environmental conditions of a market that affects the strategy chosen by MNCs such as political risks, nature of policies set by nation states as well as the changing cultural values of the local population. Understanding of these factors can lead to proper understanding of the marketplace and thus proper strategy evaluation as well as selection. Strategy Tripod Framework Figure 2.1 The Strategy Tripod Concept by Mike Peng Combining the three perspectives together brings forth the à ¢Ã¢â€š ¬Ã…“Strategy Tripod concept as shown in Figure 2.1. This is a concept helps to address how firms behave in foreign markets. By assessing these perspectives of a market, MNCs can precisely determin e the success factors that influence the final strategy as well as the nature of those factors in order to achieve competitive advantage. Indeed, the institution-based perspective is the third leg that helps sustains the strategy tripod together with the industry-based perspective and resource-based perspective. This framework is vital for penetrating transition economies since its uncertain conditions can alter the industry playing field and affect how well MNCs can use its resources at hand. Frameworks Applicable to Strategy Tripod In order to sufficiently evaluate the various factors from the three different perspectives, frameworks that are tailored to evaluate each different perspective of the Strategy Tripod will be utilised. This therefore causes the necessity to explain the frameworks to be utilised for this report. Industry-Based Competition To properly assess the industry of an economy, the frameworks of Porters Five Forces and the Generic Strategies will be us ed here. These frameworks help determine the Porters Five Forces This framework was created by Michael E. Porter in 1979 with the purpose of determining factors that affect the profitability of a particular industry. The framework revolves around five forces as shown in Figure 2.2 (hence, the name of the theory) that assess a market in terms of both competitive intensity and its attractiveness (CGMA, 2014)[12] . When combined with the internal analysis of an organisation, the Five Forces can be used to understand where is the MNCs strengths in an industry lie currently as well as where it can go to develop new strengths or enhance current positions. Figure 2.2Porters Five Forces Starting with the threat of new entrants, this force refers to the likelihood of new firms entering an industry. Markets that are profitable with inevitable attract newcomers who will attempt to steal market share and thus reduce the profitability of the various existing firms in an industry. Unless there are significant entry barriers arising from either policies, economies of scale, or capital requirements to protect incumbents, there is very little to impede the entrance of these newcomers and thus cause high levels of threat which reduces market attractiveness. Besides that, threat of substitute products or services also affects how the industry functions. This force refers to the magnitude of alternatives to a product or service that affect how likely customers will switch between substitutes when factors such as price change. For example, customers can easily switch between different brands when alternatives are nearly or equally similar to one another which represent a high level of substitute product threat. In this instance, firms cannot easily charge higher prices for a product customers know to have cheaper and equivalent alternatives. Bargaining power of buyers in an industry also plays a key role in assessing the circumstances of an industry. This ref ers to how influencing buyers can be in pushing down prices. Usually determinant of several factors such as the number of buyers in the industry, value of each buyer to a firm as well as switching costs buyers face when deciding to switch. When buyers are few and concentrated while switching costs for them are low, the buyers bargaining power is considerably high and selling prices will fall. Furthermore, similar to the buyers bargaining power, the suppliers bargaining power plays are key role in the overall competitiveness of the industry. When suppliers to an industry can drive up prices, costs of goods sold will increase which reduces the overall competitiveness of firms within that industry. The power of suppliers to do this is reliant on whether the suppliers are in concentrated numbers, of large size and strength with high switching costs. The opposite of these three variables signal low bargaining power of suppliers. The final force of this model looks into the rivalry among existing competitors. As the intensity between existing rivals in an industry heightens, returns become lower due to increased costs in competing with one another and thus leading to lower profitability for each firm. Intensity is usually determined from size and number of existing competitors, life cycle stage of the industry and also the level of differentiation between products of different firms. Higher intensity occurs when there is no leading firm in an industry, products do not outstand from one another or the industry reaches its peak leading to a lack of growth in the customer base. Porters Generic Strategy Another framework developed by Porter that describes how firms within an industry can position itself in order to achieve competitive advantage by using 3 types of generic strategies based around the dimensions of market scope and competitive advantage. These three strategies are referred to as cost leadership, differentiation and focus and will strengthen th e position of the firm in regards to the Five Forces. Figure 2.3Porters Generic Strategy Starting with cost leadership as shown in Figure 2.3, this focus of strategy is attributed to broad scope and cost-based competitive advantage. It suggests that a firm should focus on low costs and prices in order to successfully compete within its industry. With little differentiation but a wide target market, a firm would attract a massive number of customers by offering greater value for price compared to its rivals in the industry. The firm would generate profits mainly through savings gains from productions and logistics efficiency. Wal-Mart is a prominent practitioner of the cost-leadership strategy which is basically sell cheap to nearly everyone. Moving on to differentiation, this aspect of generic strategy suggests that a firm should focus on distinguishing itself effectively from its competitors in order to compete successfully. [1] Wong, M 2014, Myanmar aims to increase foreign direct investment by 10% to US$3b, media release, 22 January, Channel News Asia, viewed 14 February 2014, https://www.channelnewsasia.com/news/business/myanmar-aims-to-increase/963526.html. [2] Burke, J 2012, MNCs enter Myanmars door, media release, 5 February, Hindustantimes, viewed 14 February, https://www.hindustantimes.com/world-news/mncs-enter-myanmar-s-door/article1-806920.aspx. [3] Forbes 2013, MondelÃÆ'„à ¢Ã¢â€š ¬Ã…“z International, viewed 14 February 2014, https://www.forbes.com/companies/mondelez-international/. [4] Schaefer 2011, Kraft Foods Latest To Split In Year Of Breakups, media release, 4 August, Forbes, viewed 14 February 2014, https://www.forbes.com/sites/steveschaefer/2011/08/04/kraft-foods-latest-to-split-in-year-of-breakups/. [5] Toole, JO 2012, Kraft to rename snack unit Mondelez, media release, 21 March, CNNMoney, viewed 19 February 2014, https://money.cnn.com/2012/03/21/news/compani es/kraft-name-change/. [6] Luo, JQ and Peng, MW 1999, Learning to compete in a transition economy: Experience, environment, and performance, Journal of International Business Studies, vol. 30, no. 2, viewed 22 February 2014. [7] Zhou, JQ and Peng, MW 2011, Does bribery help or hurt firm growth around the world?, Asia Pacific Journal of Management, vol. 29, viewed 22 February 2014, https://www.utdallas.edu/~mxp059000/documents/Peng12APJM_Zhou_29_4_Dec__907_921.pdf. [8] Peng, MW 2000, Controlling the Foreign Agent: How Governments Deal with Multinationals in a Transition Economy, Management International Review, vol. 40, no. 2, viewed 22 February 2014, https://www.utdallas.edu/~mxp059000/pdf/Peng00MIRauto.pdf. [9] Luo, JQ and Peng, MW 1999, Learning to compete in a transition economy: Experience, environment, and performance, Journal of International Business Studies, vol. 30, no. 2, viewed 22 February 2014 https://www.utdallas.edu/~mxp059000/pdf/Peng99JIBS.pdf. [10] Ko gut, B. 2003. Globalization and context. Keynote Address at the First Annual Conference on Emerging Research Frontiers in International Business, Duke University. [11] Peng, MW, Wang, DYL, Jiang, Y 2008, An institution-based view of international business strategy: a focus on emerging economies, Journal of International Business Studies, vol. 39, no. 5, viewed 23 February 2014, https://www.utdallas.edu/~mxp059000/pdf/Peng08JIBSWangJiang39(5)pp920-936.pdf. [12] CGMA 2014, Porterà ¢Ã¢â€š ¬Ã¢â€ž ¢s Five Forces of Competitive Position Analysis, viewed 23 February 2014, https://www.cgma.org/Resources/Tools/essential-tools/Pages/porters-five-forces.aspx.

Theme Of Self Confidence By Jack London - 876 Words

Jack London’s To Build a Fire, tells a tale of an overzealous man, who’s over confidence leads to his death by the hands of nature. Jack London portrayals of self-confidence through the main characters inability to adhere to the guidelines set up by man, to protect man in the harsh climate of the Yukon Territory. London validates the protagonist’s overconfidence through the omniscient nature of the narrator, giving the reader the ability to receive, both the perspective of the protagonist and his canine companion. He also employs the knowledgeable old man as a logical cognizant, which the protagonists ridicules and ignores. London employs themes of naturalism, to tactfully portray the nameless character’s arrogance leading to his demise. The central character’s death could have easily been avoided if he would have listened to the advice he received, but his death was ultimately caused by his arrogance, disregarding the aid offered in the form of: t he dog’s hesitance, the old man’s warnings and nature’s unnerving might. The narrator in this story is omniscient, expressing the thoughts of the protagonists and the dog, these varying viewpoints exemplify the main character’s arrogance. â€Å"The animal was depressed by the tremendous cold. It knew that it was no time for traveling. Its instincts told it a truer tale than was told to the man by the man’s judgement.† The man completely disregards the dog’s natural instincts, which are deeply imbued in nature and relies on hisShow MoreRelatedWill Love Succeed For The End?1152 Words   |  5 Pagesthrough life’s vigorous struggles? Jack Worthing who held a double life, pursues his reputation as a persuasive, intriguing, man. Living as Jack and Ernest he tries to keep everything in his life separated. Jack seemingly can act like an adult through the whole play. â€Å" Jack has grown up to as a seemingly responsible and respectable young man, a major landowner and Justice of the Peace in Hertfordshire, where he has a country estate† ( Analysis). As an adult, â€Å"Jack represent conventional Victorian values:Read MoreThe Double Life in the Importa1372 Words   |  6 Pageson the other he satirises the human condition in general. The characters in The Importance of Being Earnest assume false identities in order to achieve their goals but do not interfere with the others#8217; lives. The double life led by Algernon, Jack, and Cecily (through her diary) is simply another means by which they liberate themselves from the repressive norms of society. 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In the same year William James died in 1910, Jack London wrote â€Å"To Build a Fire.† After reading this story it might first appear, through the third-party narration, that the man as the subject of the story might have never given this concept of thoughts influencing reality any thought at all. As one readsRead MoreRussell Jackson ´s Review of The Importance of Being Earnest by Oscar Wilde 1307 Words   |  6 Pagesrules of society To what extent is Wildes play critical of society? The Importance of Being Earnest: a Trivial Comedy for Serious People is a play written by, author, poet and playwright Oscar Wilde in 1894 and debuted at St Jamess Theatre in London in 1895. The Importance of Being Earnest is Wildes most eminent work and renowned for its abundant quips and entertaining satirical views on Victorian values, marriage and love. 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