Implementation Of Compliance Monitoring Programme Framework Information Technology Essay

Implementation Of Compliance Monitoring Programme Framework Information Technology Essay Only UK Financial Services Authority (FSA) alone has issued over  £13 million of fines in year 2011 so far ( £89m in 2010 and  £23 in 2009). (FSA, 2011) For the larger firms, the monetary value of such fine may be a drop in the ocean. Nevertheless, it may pose a major reputational risk. According to Bank of International Settlements Principles on compliance function in banks (BIS, 2005:14), the responsibilities of the banks Compliance Function (CF) should be to assist senior management in managing effectively the compliance risks faced by the bank. Furthermore, BIS survey on implementation of compliance principles in banks (2008) shows that the core tasks of the compliance function defined in laws, regulations or binding guidance in respondent jurisdictions are monitoring and testing compliance by performing sufficient and representative compliance testing as well as reporting on a regular basis to senior management where the results of the compliance testing should be reported in accordance with the banks internal risk management procedures. (BIS, 2005:14; 2008:3) The importance of an effective Compliance monitoring program is continually growing due to the increased complexity of regulations, rising regulator activity and the growing impact of non-compliance. Compliance monitoring is, indeed, the heartbeat of any CF. The creation of compliance and policy manuals are important, however, such policy management might be irrelevant without an effective compliance monitoring. (ComplianceTrack, 2011) (Appendix) Therefore, it is essential that every CF takes advantage of monitoring process to its fullest in order to protect their companies from negative consequences that non-compliance in their area may have. The aim of this assignment is to briefly outline a framework for Compliance Monitoring Programme for a pan European Financial Services (FS) organisation. This I based on the material discussed in class, further research, as well as my personal experience with Compliance gained in Irish and international companies operating not only in the FS, but also in communications, hospitality and consultancy industries. The Teamwork Compliance, with Compliance Monitoring at its core, is considered as the 2nd line of defence in the overall company Integrated Assurance Framework, also known as the Three Lines of Defence. (Appendix) The business standing in the so called 1st line of defence owns, manages and controls compliance risks through management, procedures, controls, quality assurance. The compliance monitoring then carried out by the CF in the 2nd line of defence provides assurance that the business adequately manages its compliance risks. In the final 3rd line of defence the Audit both internal and external performs the overall assessment of the adequacy of compliance functions. BIS (2005:13) suggest there should be appropriate mechanisms for co-operation among all the above assurance providers within the Integrated Assurance Framework and with the head of compliance. These mechanisms should be sufficient to ensure that the head of compliance can perform his or her responsibilities effectively. Hence, not all compliance responsibilities are necessarily carried out by a compliance unit. Compliance responsibilities may be exercised by staff in different departments. (Appendix1, 2) Such coordination with other assurance providers may lead to one of the three following review approaches (Zurich, 2010): 1. Review execution is performed by another assurance provider (e.g. Internal audit performs an AML review). In this case, CF should support the assurance provider with technical expertise during execution of the review (e.g. support in setting up the review program). 2. Joint reviews. CF participates in a review led by another assurance provider. In this case only one report will be written by the assurance provider who has the review lead. 3. Compliance Reviews. If review types 1 or 2 are not feasible or adequate, CF performs an own Compliance review. BIS Principles (BIS, 2005:14) stress that if some of the Compliance responsibilities are carried out by staff in different departments, the allocation of responsibilities to each department should be clear. As might be expected, PWC research (2009:16) shows, that in practice the three lines of defence can and often do overlap, depending on the organisational compliance structure (e.g. embedded compliance staff in the business who undertake real-time surveillance of transactions to ensure compliance with AML, market abuse or client order handling rules). To resolve these confilicts, PWC recommends to put the CF squarely in the advisory category (i.e. in the second line of defence). This means operationalising the first line of defence where compliance control and day-to-day monitoring becomes more clearly the responsibility of the business, with the compliance function providing oversight and advice. (Appendix) The Virtuous Cycle (Compliance assurance process) 1. Risk Assessment The continuous cycle is usually annual and starts with risk assessment to detect potential compliance issues and risks, in accordance with companys risk appetite. The monitoring is typically (Appendix) planned on risk-based basis as this approach enables resources to be targeted to the areas where they are most needed and will prove most effective, potentially not only saving compliance costs but also gaining greater business support for compliance measures. (Better Regulation, 2008) The following sources need to be considered to determine which compliance risks should be monitored on the highest group company level: 1. Risk assessments, which can, for instance, be categorised by business areas or standards prescribed by regulator (e.g. FSA handbook categories) 2. Regulatory Environment: Laws, regulations, specific requests by the Regulator 3. Monitoring currently executed and planned in the future periods by other assurance providers 4. Local risk assessments and compliance plans Moreover, the required depth, breath and frequency monitoring activities depend on the size and complexity of the nature of the industry and the company itself. 2. Compliance Plan Based on this input, CF establishes its review needs, which should subsequently be discussed and coordinated with other assurance providers in order to leverage on the existing review frameworks and to avoid duplication, gaps and to limit business interruption. All defined reviews on compliance risks, irrespective of which assurance provider executes them, will be included in the annual Compliance Monitoring Plan. This Compliance Plan typically details the what (scope and objectives, problems/risks, priorities), who (resources), when (start and finish dates, major milestones), and how (activities to be carried out and data to be collected). 3. Compliance Data Collection and Testing The Compliance procedure manual tells you how to comply with the regulators rules. How do you, however, ensure that your company has been following this manual? The answer is by conducting compliance testing on a regular basis to see whether those procedures are working as expected, and what the exceptions are. (Cyriac, 2011) Hence, CF should have a process in place that systematically collects all the compliance-relevant information. The list below defines the main issue and risk identification activities that CF can use to monitor compliance risks (Zurich, 2010): Compliance Testing The aim of compliance testing is to conduct detailed evaluation of compliance-relevant procedures and internal controls (manual and automated) built into company business processes to asses whether these are adequate to manage the risk within the scope of CF. Tests should be completed clearly, concisely and accurately, in line with CF and company standard methodologies. Ideally, large portion of such testing population can be sources from company management information system such as records of complaints, errors, exceptions, mitigating actions and their status, trends, and the like. Reasonable sample sizes when testing areas with a volume of data (e.g. trades) should be used. (Cyriac, 2011) Compliance monitoring is meant to be both proactive and reactive. It should collect data to prove the availability of controls and validations and it should also collect data relating to failure. (ComplianceTrack, 2011; PWC, 2005) The actual frequency of tests is dependant on the abovementioned risk assessments. As a general guideline, higher risk areas are recommended to be tested more regularly, at least monthly, medium risk areas, at least quarterly, and lower risk areas, at least annually. (Cyriac, 2011) As mentioned earlier, the CF can take advantage of the connections, resources and expertise within the Integrated assurance framework in certain circumstances where the CF may require to increase the independence, quality and/or frequency of their reviews. The following basic steps may be executed when performing a Compliance test: Review Preparation and announcement Inform the Business about the planned review and discuss review process, scope, timing and collaboration Prepare the review by gathering information and establishing the review program Fieldwork Execute the review according to review program and file supporting review documents and evidence Discuss observations and actions with the Business Testing by Other Assurance Providers Regular meetings should be arranged within the Integrated assurance framework to identify potential issues that might have an impact on compliance risks. Also, CF should be kept in the loop in regards to reports from other assurance providers. Complaints External Perhaps also part of a good MIS, complaint handling procedure should exist where all complaints are registered and tracked for regularly relevant compliance statistics (e. g. number of complaints, summary of major topics, actions taken, status, development needs). Complaints Internal To encourage employees to express concerns, an infrastructure for reports (often anonymous) should be in place (e.g. dedicated contact persons, hotlines, email address, web forms, etc.) and all staff informed and actively reminded of its existence. Reported issues are investigated and acted upon in timely manner and reported to relevant stakeholders (e.g. number of complaints, major topics, status, channels used for reporting). Day-to-day Counselling Compliance should not be seen not just as a monitoring tool but as an active, ongoing support to management. As business progressively manifests the right behaviour embodying both integrity and innovation the need for the CF to police its activities diminishes, and the value-adding counsellor role comes more to the fore. (Appendix?) (PWC, 2005) Having a good relationship with the business is vital to the success of the compliance function, particularly when it comes to assessing the compliance risk of the business. Companies with a mature compliance culture tend to think of the compliance function as a vital element of business operations and no decisions on, for example, new business ventures or services would be taken without the involvement of the CF and its advice on all compliance risk areas. (Metheven, 2011) At the same time, however, the pendulum should not be allowed to swing unreservedly in the counsellor direction. Compliance has a critical role to play in compliance oversight and monitoring in order not only to provide the necessary comfort to (senior) management but also to frame the advice it provides going forward. A clear delineation needs to be set between doing compliance and monitoring compliance. (PWC, 2005) Yet, interestingly, in PWC 2009 (:15) survey of 76 financial institutions based in 16 European countries forty-eight percent of respondents say the difference between the compliance management and the compliance monitoring programmes is still not fully understood within their organisation. Hence, CF should attend all committees where compliance risks may be discussed. Annual Relationship Management plan is a popular solution, outlining minimum required regular meetings with management to discuss potential risks, issues and new developments. Regulatory Environment Monitoring Changes in regulation, laws and industry should be monitored systematically. Where action is required, owner of the particular area should be advised of the matter and the deadline for implementation. CF should ensure the owner has all support needed (compliance, legal etc.) so the deadlines and requirements of the new regulation are met. As usual, it is important to keep all stakeholders informed. Compliance officers increasingly appreciate the need for a coherent dialogue with regulators to gain a better understanding of their changing expectations and the need to monitor the upstream risks of new regulations more effectively. (PWC, 2009:4) To ensure no surprises, or last-minute scrambling and the associated unnecessary expense, particular attention should be paid to monitoring new regulatory proposals. (PWC, 2009:9) How do we do it? UK monitor it, tell us about it, agree deadlines, help us to read the docs ensure interpretation ok, bring directors into the loop,à ¢Ã¢â€š ¬Ã‚ ¦ Regulatory Action Monitoring Reviews, investigations and requests from regulatory bodies should be received and analysed. CF must ensure timely resolutions of such requests, possibly also coordinating the whole process. It is a good practice to share the results of the Regulators activities (e.g. regulatory review report including fines or sanctions where appropriate) and implementation progress (status of internal actions) with relevant stakeholders. Training The best practice dictates that annual Training Plan should be established to communicate regulatory/compliance matters to employees of the organisation. These activities can be measured (e.g. coverage, success rate, completed by deadline) and results used as indicators for next periods. Local CF monitoring Important part of Compliance monitoring in organisations consisting of various units/branches is to ensure that CFs across the company execute their tasks according to the company principles. (Appendix) This can be done by regular meetings of group CF with local CF units (e.g. one-to-one/joint, face-to-face/teleconference/online; discussing risks, activities, infrastructure), reporting (e.g. issues, risks, activities, KPI performance), periodic meetings with key local business stakeholders (e.g. satisfaction, cooperation, added-value, prioritization, resource), regular quality assurance reviews (carried out by CF and/or in cooperation with another assurance provider) Monitoring of Outsourced functions and activities There are strong parallels in approach in terms of controlling third-party networks and outsourced functions or activities. (Appendix) Key control elements stressed by respondents include: à ¢Ã¢â€š ¬Ã‚ ¢ Quality of the due diligence exercise prior to entering the relationship à ¢Ã¢â€š ¬Ã‚ ¢ Contracts and written agreements (service level agreements) à ¢Ã¢â€š ¬Ã‚ ¢ Robust monitoring by the (local) compliance function and testing exercises (for example, mystery shopping) à ¢Ã¢â€š ¬Ã‚ ¢ Ongoing communication and training sessions à ¢Ã¢â€š ¬Ã‚ ¢ Metrics/controls/reporting à ¢Ã¢â€š ¬Ã‚ ¢ Quality of the compliance function within the third-party distributor or outsourcer, and compliance policies in place, as well as a clear definition of compliance processes à ¢Ã¢â€š ¬Ã‚ ¢ Onsite reviews by compliance and internal audit à ¢Ã¢â€š ¬Ã‚ ¢ Complaints analysis à ¢Ã¢â€š ¬Ã‚ ¢ Dedicated unit within the compliance function to oversee third-party distributors or outsourcers. Does IT help? Priority should be placed on the development and use of technology able to help management to really understand, on a timely and consistent basis, what is going on in the business. From the perspective of the CF, a robust technological infrastructure entails both sophisticated tools for monitoring compliance in business activities, together with appropriate tools for streamlining compliance function activities, and facilitating knowledge sharing. (PWC, 2005:11) The apparently low level of knowledge of IT within compliance functions supports the view that, in many organisations, the IT department is not considered to be a key stakeholder in the compliance function, and vice versa. However, PWC believe that technology is a key enabler to supporting compliance within the organisation, and presents a significant opportunity for many organisations. This means the use of technology to: Control and manage processes that cut across systems and organisational boundaries. Compliance touches nearly every operating and administrative unit and business process in an organisation so the task of controlling and managing the compliance process itself is huge. Each of these require appropriate application of technology in order to establish sustainable compliance. (e.g. document management, status reporting, automated internal controls) Appropriate use of IT can improve the quality of information and speed of delivery transferring data from one system to another, replacing manual processes for execution, analysis and reporting, challenging the quality of data, modelling alternatives and delivering reports and dashboard information to decision makers. Reliable information increases confidence to take action. à ¢Ã¢â€š ¬Ã‚ ¢ Identify and manage events in a consistent and auditable manner. Technology is used to identify events and report exceptions. This involves optimising control capabilities in existing business and support systems, use of integration technologies to bring together information from disparate source systems and administering and monitoring of risk and control self-assessments and other surveys. à ¢Ã¢â€š ¬Ã‚ ¢ Build accountability into the management and reporting of events. IT help ensure action by creating a closed loop environment that incorporates accountability for each incident and requires action. (PWC, 2005:61) According to PWC (2005) survey of 73 FS (63% banking, 19% investments, 18% insurance) institutions in 17 countries, 36 percent of respondents considered inadequate IT infrastructure for compliance monitoring as one of the biggest challenges of achieving a compliant organisation. (PWC, 2005: 19) 4. Data Analysis Results of reviews on compliance risks, as defined above, should be captured and analyzed. Every Compliance function should systematically monitor and analyze the captured data in order to identify compliance risks, issues, problems and trends. Key Performance Indicators reflecting the monitoring activities can be an important part of the reporting dashboard and help to identify trends on a local and group level. 5. Reporting and Follow up Reports to stakeholders (e.g. those charged with governance) on compliance monitoring and analysis need to present a balanced view of the situation, risks, issues, actions taken, highlighting both positive and constructive/developmental aspects, and proposing improvement actions. Reporting happens according to reporting standards of the particular company but generally include the following: Write and discuss report, observations and actions with the business Share report with relevant stakeholders Follow up actions Sample Reporting Content Executive Summary Background Objective and Scope Description of compliance testing/review carried out Observations Rating of quality of controls and processes under review. Actions 6. Review Being part of the Integrated assurance framework, Compliance should itself be subject to regular view usually annual as mentioned above usually by external and internal audit. Benchmarking with industry peers is also a beneficial practice. Without processes to judge program elements and implement necessary improvements, any compliance program will have difficulty staying efficient, effective and up to date. Well-developed routine monitoring and periodic assessment processes, with clear paths for communication of recommended changes, may be the best sign of a mature and effective management system. (OCEG, 2004:2)

Thomas Aquinas’ Account of the Various Dimensions of Prophecy

The Summa Theologica, one of the principal works of St. Thomas Aquinas, has created remarkable impacts not only in his time but also up to the present generation. A writing that is, according to him, a compilation of Christian doctrine as a manual for his students, the Summa Theologica is actually a complete, systematically arranged exposition regarding theology and Christian philosophy. It consists of questions, articles, and arguments discussing different concepts related to theology (Aquinas,154).One of the most famous and controversial topics included in the Summa Theologica is the various dimensions of prophecy of the philosopher and theologian: prophecy of foreknowledge, prophecy of denunciation, and prophecy of predestination. The first mentioned dimension of prophecy pertains to the revelations of God regarding the events in the future that depend primarily on man's freewill. The samples given by Aquinas have something in relation to life and death, wars and dynasty, and the likes.Therefore, in fulfilling the prophecy of foreknowledge, one's free choice is the major influential factor. In contrast to the first prophecy, the prophecy of predestination deals with what God has revealed that He alone can do, has believed is present for eternity, and what is in His absolute decree. Therefore, a man's free choice is not a contributing attribute in this dimension of prophecy. Lastly, the prophecy of denunciation talks about the event that may and will happen through God's revelation of the future which can be hindered by miraculous deeds.Thus, it is regarded as a â€Å"conditional promise† which is mainly dependent upon other factors that will or may prevent it from happening (Aquinas,154). Aquinas also believed that other than knowledge, revelation is a necessary requirement for salvation. Through this, man can know the supernatural end that actually affects his acts. More importantly, without revelation, only a few would know the truths concerning God after a longer time and with of course, a great possibility of error.Thus, he proved that â€Å"reason,† which is anchored to man's knowledge, is essential not in proving what the truths of faith are but in defending, explaining, and developing the revealed doctrines of Christianity (154). However, not all agree with Aquinas’ belief; some question one of his points of view, specifically regarding active intelligence. Henry Corbin’s statement disapproves of Aquinas’ perception that active intellect functions not in separate ways with spirituality (249).Corbin strongly disapproved this and emphasized that if these two will be linked and treated as one in terms of functions, spirituality may lose its true essence since intellect is classified with relevance to the social norm (249). Thus, when not separated with the socialized arena of active intelligence, beliefs regarding religious arena might as well be affected. A spiritual entity dominated by religious forces, which are influenced by a socialized field of intellect, might as well in return be socialized.This occurrence will result in modifications in one’s points of view and confusion about what truly exists and what does not. An example given in that statement describes the transformation of one’s belief in monotheism to monism (Corbin 249). The former explains that only one god exists but when not done separately from the aspect of intellectual side, it then results in monism wherein one believes that one god only exists but with manifestations in various religions. This scenario just illustrates what Corbin tried to explain if intellect comes in the way of spirituality.

Dbq on Territorial Expansion

DBQ From 1800-1855 many things contributed to the government’s policies towards territorial expansion, the most important ones being supporters of this behavior increased trade with Asia, and dislike towards Mexico, that helped with the addition of new states. The 1803 Louisiana Purchase helped start the Era of Good Feelings because it marked the beginning of the downfall of the Federalists. The Federalists opposed expansion because they feared that new territories would drain off their New England population and compete with New England economically.Between 1800 and 1823 the Louisiana Purchase and the Treaty of 1818 boosted national unity. First, the Louisiana Purchase boosted unity because it helped start the Era of Good Feelings. In the time between 1800 and 1850 America experienced a difference in national unity. Territorial expansion also had a huge effect on national unity in this time period. The first debate over the issue of territorial expansion began when Missouri w anted to join the union as a slave state.Missouri, which was part of the Louisiana Purchase, which was part of the Northwest Ordinance. The Northwest Ordinance stopped slavery in the Northwest Territories. In 1817, when Missouri applied to the Union as a slave state, the issue of anti-slavery vs. pro slavery came up. In 1819, Maine applied to become a free state. A compromise was then reached, so that Maine would enter as a free state, while Missouri would enter as a slave state, balancing free and slave states. New territories that would enter above the 36’30’ line had to be free states. Dbq on Territorial Expansion DBQ From 1800-1855 many things contributed to the government’s policies towards territorial expansion, the most important ones being supporters of this behavior increased trade with Asia, and dislike towards Mexico, that helped with the addition of new states. The 1803 Louisiana Purchase helped start the Era of Good Feelings because it marked the beginning of the downfall of the Federalists. The Federalists opposed expansion because they feared that new territories would drain off their New England population and compete with New England economically.Between 1800 and 1823 the Louisiana Purchase and the Treaty of 1818 boosted national unity. First, the Louisiana Purchase boosted unity because it helped start the Era of Good Feelings. In the time between 1800 and 1850 America experienced a difference in national unity. Territorial expansion also had a huge effect on national unity in this time period. The first debate over the issue of territorial expansion began when Missouri w anted to join the union as a slave state.Missouri, which was part of the Louisiana Purchase, which was part of the Northwest Ordinance. The Northwest Ordinance stopped slavery in the Northwest Territories. In 1817, when Missouri applied to the Union as a slave state, the issue of anti-slavery vs. pro slavery came up. In 1819, Maine applied to become a free state. A compromise was then reached, so that Maine would enter as a free state, while Missouri would enter as a slave state, balancing free and slave states. New territories that would enter above the 36’30’ line had to be free states.

Reebok Easy Tone - Free Essay Example

Sample details Pages: 18 Words: 5438 Downloads: 6 Date added: 2017/09/17 Category Marketing Essay Type Argumentative essay Did you like this example? Product and brand development Question 1 How would you monitor the marketing environment for launching a product in a target market ? Answer While talking about marketing environment, The marketing environment consists of all the factors and forces outside marketing that affect the marketing management’s ability to develop and maintain successful relationships with its target customers. Broadly classifying, we can divide marketing environments into two major categories namely †¢Internal environment †¢External environment Internal environment The internal environment refers to the company and its existing products, marketing strategies. It also includes the strengths of the company with regard to manufacturing abilities, distribution capacities, and marketing abilities. Internal resources should also be considered while formulating a marketing strategy. External environment External environment includes the competition, other rivals, the market conditions, customers tastes and preferences. The list goes bigger than that. Anything can be included under competition. The existing rivals, the possible rivals, the product group rivals, and alterantive products to satisfy that particular need also come under external environment. The government policies including trade policies, restrictions, foreign trade policies also come under this. Availability of raw materials and even the customer mindset at that particular period of time can also be considered a part of the external environment. Further, external environment is sub divided into 1. Micro environment 2. Macro environment For most companies, the micro environmental components are: ? ompany suppliers ?marketing channel firms (intermediaries) ?customer markets ?competitors and ?Publics. The macro environmental components are thought to be: ?demographic ?economic ?natural ?technological ?political and ?cultural forces My product of study for this research is Reebok â€Å"easy tone sho e† Talking about reebok easy tone shoe, this shoe is being promoted in world market with a message that if u looking for a weight loss shoe then you need to consider the Reebok Easytone as part of your shopping list. Primarily this shoe is designed to target the fairer sex. With women going more health conscious these days and every lady wants to be in perfect shape, easy tone is designed to work more of your calf, thigh, and core muscles by giving you the feeling that you are walking on sand. This shoes focuses on working out the calves, gluteus maximus, and the hamstrings to enable to burn calories, tone muscles, and lose weight. This is the idea behind the Easytone. The designers of Reebok have engineered a shoe that gives the feeling that you are walking on a dry sandy beach. That is a nice idea, but there is some solid science behind this. Think about the last time you walked on a soft sandy beach, it was hard to keep your balance and you had to move around quite a bit to keep your balance. Reebok has developed their own proprietary technology to take advantage of the benefits of instability training here with this shoe. The Easytone features built in balance pods near the top of the sole and heel to give you a natural instability as you walk. This forces you to use all the muscles in your legs and abdomen and forces them to use more energy and to tone. Reebok has put these shoes to the test of university studies and found that people who regularly wear these shoes will improve their muscle tone. The Reebok Easytone features a mesh and leather smooth fit textile lining, an insole with speacilized cushioning, a midsole that contains their special DMX Max design, and a rubber traction outer sole. They offer this shoe in several different design groups including the Reiinspire, Flip, Go Outside, and some Custom Designs. The Reiinspire is your classic tennis shoe and comes in four basic color designs. If you are looking for a casual shoe the n take a look at the Flip which is an open heel sandal. The Go Outside style comes in either plain black or white for people looking for a more classic look. They also offer several different custom designs which are they designer line. All of these shoes retail for around one hundred dollars. One thing that makes this shoe really stand out is the amount of research and testing that Reebok has invested in the Easytone. From a subjective standpoint they have done extensive wear testing over the last few years with hundreds of people. They gave these shoes to volunteers and asked for their feedback in a lower extremity muscle activation survey. The majority of these people responded they they could feel the majority of their leg muscles were working much harder while wearing these shoes. In this research, i will monitor the market environment in India while launching reebok easy tone shoe. Reebok international and its existing products Reebok International is a multinational compan y which designs and markets sports and fitness products, including footwear and apparel, as well as similar products for non athletic (casual) use. Reebok has three major business groups: the Reebok Division, which is responsible for the Reebok brand, the Greg Norman Division, responsible for the Greg Norman brand, and the companys major subsidiary, the Rockport Company, responsible for the Rockport brand, as well as footwear sold under the Ralph Lauren brand. The company is listed on the New York Stock Exchange, and competes primarily with Nike. manufacturing Considering manufacturing as one of the foremost component of internal environment ,The current manufacturing practices of the sneaker industry, Reebok, takes place throughout the globe. With the industry experiencing severe competition, and the product requiring intensive labor, firms are facing extreme pressure to increase their profit margins through their sourcing practices. The following paper will analyze the sneak er industry, while examining the multitude of viable manufacturing options, and critiquing their current manufacturing structure. Market share of Reebok in Indian shoe market As far as branded sports shoes are concerned, Reebok has a firm hold on Indian footwear market second to Nike. The industry is currently experiencing hyper competition , led by six main firms – Nike, Reebok, Adidas, Fila, Converse, and New Balance , with nearly $7 billion in revenues domestically. Nike is the industry leader, with a 47% market share, followed by Reebok, a distant second at 16%. This category is facing decreasing demand and the rising popularity of alternative footwear, resulting in more pressure than ever before to achieve high gross margins through effective global sourcing practices. Marketing strategy Reebok, as the second leading manufacturer of footwear, has domestic revenues of $1. 28 billion and a market share of 16%. They utilize a 100% outsourcing strategy and manufacture their products throughout Asia. They have created and implemented their own code of conduct for manufactures to follow, but have less infrastructure than other competitors like Nike, new balance, converse etc. across the globe to enforce it. They are facing scrutiny in regards to wage, overtime, and air quality issues are working to address these issues. However, their strength, the creation and distribution of a global brand, is allowed to foster under this manufacturing strategy, as they focus on their core competencies, and outsource their production. So when it comes to introducing a new product like Easy tone shoe in Indian market, the internal environment of the organization favours the launch . With all the major brands climbing out of the recession , each organization is ready with a new product or the other. Skechers shape ups and MBT shoes are the ones, which are designed and manufactured on same science as that of Reebok easy tone. Although , MBT and skechers already h ave made a mark in fitness shoes as far as international market is concerned but this is the first official launch of such shoes in India. Also,. Skechers and MBT don’t ave a good market share in india. Thus, on the front of fitness shoes, Reebok is not expected to face a very strong competition as long as its rival brands Nike and Puma come up with a similar idea. Further more, Reebok has been in Indian market for a long. Not only the elite class but now a days, reebok has made its image of reliable brand in middle class as well. Not only that reebok is manufacturing its products in india itself but also they have very strong distribution channels via distributors and retailers. Thus external environment is more or less is in the favour of new product. According to Indian apparel shoes association, Statistics of January 2009 (December 2008 for reebok footwear) sales figures, India’s total sports shoes sale followed a 3. 2 percent decline in December with an even m ore severe 4. 7 percent in January, and was 13. 8 percent lower than in January 2008. This performance is the worst in recent recorded history and showcases the impact of the severe economic recession on the entire shoe industry, including the domestic shoe manufacturing sector. But when these statistics were compared to international market, they showed a favourable trend as international market was more affected by recession. According to American footwear association,sales went down by 3. 3 percent in January to 8. 9 percent lower than in January 2008. Sales condition continued to worsen in January, surging from 7. 2 percent to 7. 6 percent. Further more, india came out of recession ghost much early then other big giant nations. Thus it is nevertheless a great opportunity to launch such a product in Indian market. Market research for Reebok easy tone This market research was done for Reebok shoes and much emphasis was laid on newly launched Reebok easy tone shoe. OUTLOOK OF FO OTWEAR IN INDIA Introduction Indian people perceive shoes as one of the most important accessories to go with fashion rather than just for practical purpose. India is emerging as a, dynamic fashion country in the world. Many international footwear brands have entered india in last two decades. Since consumers are more demanding in style, it makes buyers more eager to source good taste and fashionable shoes from overseas in order to serve the market. India’s geographical and cultural proximity strengthens its intermediate role to assist foreign companies to enter the Indian market by various kinds of channels. The economic and business environment of India recovered in these two years. Such situations positively affect the imports, consumer spending and retail sales of clothing especially for high-end fashion items. This research targets to know the response of people towards Reebok shoes and much emphasis is laid on response of people towards newly launched Reebok easy tone shoes. Market segment Shoes market in India is diversified. Generally speaking, it could be divided into 2 segments. One is the upmarket / high-end / brand name shoes involved in high price bracket. These are usually high quality shoes, majority being manufactured in India itself or imported from Europe, e. g. Italy. For the upmarket group, they are the trendiest shoes and the shoes are usually made of high-quality materials, with more sophisticated product design, quality workmanship and are therefore more durable. With growing economy, Brand names influence Indian consumers from all walks of life. They are fascinated by brands, and many of them are even spending majority of their earnings on high-priced designer labels. Another segment is the local products. They are usually lower priced, trendy but with styles â€Å"copying† those from Europe. They are mainly products imported from China or other Asian countries like Taiwan or Indonesia. For this group of custom ers, shoes need to be able to withstand constant wear and tear, value for money, be functional and good for mix and match. These consumers choose the most price competitive merchandise regardless of brands. Nevertheless, they might also buy the brand named or shoes imported from Europe during winter and summer sale periods. In such diversified market environment, Reebok has been able to make a mark n consumers from both segments, i. e, customers from high end to customers of local manufacturers. Market trend Consumers in general have undoubtedly become more `value’ conscious. In fact, the shoes marketplace is complicated. As in Hong Kong there are some big importers e. g. Lane Crawford which has already exclusivity of many brands. Although there are different kinds of shoe retailers, wholesalers, agents in the distribution channels, the room of shoes business becomes limit. On the other hand, retailers become more diversified and they source from everywhere in order to increa se the competitiveness. Buyers have more sources than before; they are not searching footwear and handbags only from Europe but also Japan, etc. Besides, they also set up buying offices overseas in order to purchase more unique products. For example, I. T. , one of the very uprising and leading multi-brand stores in these few years, source at least 50 worldwide labels from Europe and Japan each season to keep up with the hottest trend. The strong branding strategy captures the high social group who are rich and willing to spend for latest fashion. To counter such diversified market trend, reebok always has come up with range of shoes to match with the need of customers. With targeting the young people, Reebok , with its large range of sports shoes have met with customers satisfaction. With joggers priced at low bottom of 1200 rupees, reebok ensures that people who can not spend much on shoes can still have their product. On the other hand latest models like reebok pump and E A 7 Emporio Armani collection are designed to met with the requirements of elite class. Reebok, being a unisex brand, has always impressed both the sexes. Reebok easy tone is specially designed for women. Product features Reebok Easy Tone Features Easy Tone features several special design highlights that help tone the legs and rear end. †¢Special balance pods are worked into the shoes design to provide a natural instability to help tone and sculpt the legs. †¢Interesting balance adjustments create the sensation of walking on sand. Also described as a stability ball function, these special shoes will encourage muscles to work as you walk and simply stand. †¢Uppers are molded from synthetic leather and a particular mesh called SmoothFit. Why Toning Sneakers? Toning sneakers are not meant to replace daily exercise or make you magically slim, but they can be a healthy option when you need a toning solution that requires less work. When swapped with leg toning sandals on your time off, youll never need to wear a pair of regular sneakers and sandals again! Advantages of Easy Tones Many people are curious about Easy Tone sneakers, and checking out reviews, commentary, and claims on these popular toning shoes can help you decide if they are right for you. Possible advantages of the shoes may include increased speed, motivation, and reduction in leg problems. †¢Reebok Easy Tones help wearers move their feet forward, enabling forward momentum and drive to finish longer runs faster. †¢Easy Tones effects of the shoes muscle-stimulating shape may be noticed immediately, particularly for those who are not very athletic. †¢There is a possibility of reduction in leg vein problems and cellulite with extended use of these and other leg toning shoes. †¢The curved shape of leg toning shoes is a call to action, and will compel the wearer to move her feet. It may be difficult to balance in your shoes the first time you wear them, but thats part of the exercise routine. †¢Keep in mind that not all leg toning sneakers were made the same. Some of them were designed for walking, others for running, and others for casual wear (as in flip flops, sandals, and ballerina slipper styles). Reebok, also is curious and worried about its competitors, who also have the shoes on same basics. MBT and skechers shape ups are better than easy tone.. Research done on this reveal following facts. How Skechers Shape Ups and Reebok EasyTones work: With a curved front and back, Skechers Shape Ups simulate the feeling of walking on soft ground, like sand. Reebok EasyTones are a totally different design, incorporating balance pod technology. † That means the Reeboks have mini inflated pods under the ball and heel of your foot. Both of these shoes are designed to create instability, making muscles work harder and hopefully giving you a firmer backside. After giving Skechers Shape Ups and Reebok EasyTones to some of our staffers, h ere’s what we found: Comfort battle: Skechers Shape Ups vs. Reebok EasyTones Overall, people liked the feel of Reebok easy tone. One said, The rocking sensation was a little strange at first, but I got used to it pretty quickly. † People also found skechers shape ups comfortable. Verdict: When it comes to comfort, both the Reebok EasyTones and Skechers Shape Ups get a good grade. They might take some getting used to, but both are a great fit. Style factor: Skechers Shape Ups or Reebok EasyTones? Interestingly and amazingly, people don’t want to wear these shoes to as far as style factor is concerned.. One tester thought the Skechers Shape Ups were passable – if you wore long pants. Another staffer felt differently: â€Å"They’re hideous in my book. † With a matte plastic look on the top and sides of the EasyTones, Reeboks didn’t do much better. â€Å"As soon as I tried them on, I was getting a lot of crazy stares. † Verdic t: Trendy, they’re not. To sport either Skechers Shape Ups or Reebok EasyTones, you might have to sacrifice style for fitness. Working it: Do Skechers Shape Ups or Reebok EasyTones tone better? A group of people summed it up best when asked which one is better, â€Å"we definitely feel like easy tone have more range of motion than theShape ups. In general, our testers did not feel as much toning with the skechers. Verdict: When it comes to feeling the burn, Easy tone seem to deliver more. Value: Overall, are Skechers Shape Ups or Reebok EasyTones the better buy? A group of sample was more impressed withReebok easy tone. One staffer said, â€Å"I’d probably pay the $100 if I had an extra $100 to spend. † Verdict: Our reviewers were put off by the steep price of both of these shoes, but if they had money to spend, theyd opt for the Reebok. On Viewpoints, you tended to agree with our staffers! You gave easy tone an overall score of 4/5 stars, and 78% of reviewe rs recommend them. One reviewer said they’re â€Å"the perfect exercise shoe. † You also credit easy tone with supporting your lower back and building muscle strength. As forskechers? Seems like they aren’t on your radar yet. When you do have something to say about skechers, be sure to share your reviews with us. The experts weigh in on Skechers Shape Ups and Reebok EasyTones: What do fitness professionals think? We asked California State University (Long Beach) fitness professor Dr. Jan Schroeder her thoughts on the effectiveness of toning shoes, but she says the jury is still out. Toning shoes have released their own studies, though. Reebok claims that â€Å"women could generate up to 28% more butt muscle activation† by wearing Reebok EasyTones (compared to an ordinary gym shoe). But Dr. Schroeder isn’t convinced. She says that because Reeboks research only required participants to walk 500 steps, she feels their findings arent strong enough t o draw solid conclusions. Skechers makes similar claims about Shape Ups, citing that in a clinical trial, women â€Å"lost an average of 3. 5 pounds† over six weeks. But according to Dr. Schroeder, until more published research is released, it’s difficult to confirm the fitness benefits of toning shoes. Dr. Benno Nigg at the University of Calgary is conducting some of that much-needed research and has found that Skechers Shape Ups and Reebok Easy Tones do stimulate your muscles! But how much they tone is up for debate. According to Dr. Nigg, â€Å"Muscle toning is not defined in scientific terms. † Instead, he studied how the Skechers Shape Ups and Reebok EasyTones activated muscles and moved the wearer’s center of pressure. The results? Dr. Nigg found that the center of pressure moved more for Reebok Easy Tones than for Skechers Shape Ups. What does that mean for you? On average, Easy Tones created more instability than Skechers, which could mean more toning for you. Price (This Will Surprise You) This is a biggie for most people who just do not have a lot of money to spend on shoes – especially a pair that really doesn’t translate well across different settings (Easy tone and Shape-Ups are not great office or formal footwear). The obvious winner here is Easy tone. Or is it? Since I am committed to giving you reliable information (and I really like to save money), I did a little math. The average price for a pair of Easy tone is $110. 00. ( 3300 rupees) The average price for a pair of shape ups shoes is $150. 00 ( 4500 rupees) There are less expensive designs (approx $110. 00), but the average is over $150. 00 (4500 rupees). So Easy tone cost much less than shape ups. Launched nearly an year ago, shape ups have its customers who claims to have skechers shoes for over a year. They are still as durable, springy, cushioned, and comfortable as when they came out of the box. Many reviews of Skechers Shape-Ups (too many) say that the sole begins to peel off after just a couple of months of wear. So, let’s look at those numbers again. Skechers Shoes for 2010 – Buy 1 pair in January that will last at least over a year. $150. 00 Skechers Shapes for 2010 – Buy 1 pair in January. Another pair in April (generously giving the shoe 4 months instead of what seemed more like a 3 month average). Another pair in August. Another pair in for the holidays. That would make it 4 x $110. 00 = $440. 00 Yikes! This is what newly launched Easy tone has to beat if it has to make a mark in market as far as fitness shoes are concerned. When researched at international level, Easy tone was a big success in its mother country UK. As the UK prime time television campaign ends its first week on British TV screens, the nation is already captivated by the apparent work out benefits of Reebok Easytone Shoes, helped by the display of a full 30 seconds of taught tight buttocks and perfectly sculpted l egs. The UK adverts feature a plethora of flesh, filmed at waist height, and has been designed for maximum visual impact. Rather than focus on the technology of the shoes, the Reebok Easy tone shoes commercial clearly shoes what toning can do to the body. The campaign, which also features poster adverts up and down the country is widely believed to be the most expensive television campaign ever produced by a sports wear company, as Reebok attempts to become the number one lifestyle fitness shoe. The shoes offer a way of incorporating a more intense workout into any daily routine, whether jogging, walking or taking the kids to school. They appeal to busy women who have not got the time for a dedicated gym session, and offer more of a workout without the effort. The key to the extra toning lies in the soles of the shoes, which feature instability pods using the principles of the balance ball. Located in the major weight bearing areas of the foot; the ball, heel and toes, they cr eate micro instabilities which caused the body to be put off balance slightly. As with a balance ball, the muscles of the legs have to work harder to correct the imbalance, adding more toning value with an increased level of muscle activity generated. Independent studies have demonstrated that Reebok Easytone Shoes will increase valuable toning exercise to the buttocks by a further 28%, with the hamstrings and calved receiving an 11% boost. Whilst perfectly toned legs and taut bottoms will certainly highlight the benefits of the Reebok Easytone shoes, putting the body off balance on every step could well cause foot and ankle problems. Reebok have countered this by adding extra stability to the shoe to prevent injury. The shoes feature a rigid medial post which prevents torque, which is increased by the pods on the soles. The medial post keeps Reebok Easytone shoes from twisting under the pressure of walking and running. The shoes also feature the Smoothfit design, which offers a seamless inner to remove all potential sources of abrasion, and most customers agree, that Reebok have produced one of the most comfortable shoes on the market. Parental advisory However as advised Reebok Easytone shoes are fine for walking and jogging to add more value to exercise, however Reebok do not recommend that the shoes be used in a gym workout, where the pods may actually work against the body and lead to injury. Provided that they are used for light exercise, where there are not heavy stresses placed on the feet, they are comfortable, supporting and will increase toning. Arch support is excellent, and the health of the feet will not suffer. If you suffer from foot conditions such as bunions, it would not be a wise move to choose the shoes, as the imbalance they create could have a detrimental effect on the condition. However if your feet are healthy, they offer a comfortable way to help get the legs and bottom in shape for summer, and are expected to be the lifestyl e footwear sensation of 2010 Reebok EasyTone Trainers Q Few fitness trainers were asked the following questions regarding easy tone shoes and they came up with following responses to the asked questions. What is a Reebok EasyTone? Designed to help tone key leg muscles with every step you take a Reebok EasyTone shoe is an innovative footwear solution to fitness that can be comfortably worn wherever you go. How do Reebok EasyTones work? To create the natural instability thats needed to make the key leg and glute muscles to brun calories and begin toning, Reebok EasyTones feature balance pods built-in under the heel and forefoot. When can I wear Reebok EasyTone trainers? Reebok has been making trainers for countless year, so their Easytone trainers are designed with style in mind. You can wear them for all your daily activities so they can continue to tone key leg muscles and make you look great while youre doing it. Which muscles do EasyTones work? EasyTones focus on key muscles in the glutues maximus, hamstring and calves, better known as your legs and bum. What are the other benefits of Reebok EasyTones? EasyTones are incredibly comfortable to wear. This tends to encourage peole to wear them for longer, which helps you on your way to a firmer bum and tighter hamstrings and calves. Is there a risk of injury? Due to the instability of the balance pods, Reedbok suggest that EasyTones are unsuitable for activities with unplanned side-to-side movement or any lateral-movement-sports such as tennis or basketball. But any other activities should be fine. Its always recommeneded that you check with your physician before embarking on any exercise program. How long do I need to walk in my EasyTone trainers? Because Reebok EasyTone trainers improve the exercise you get with every step, the more steps you take, the greater the benefit youll feel from the extra workout while you walk. How do Reebok EasyTone trainers compare to traditional trainers? Reebok EasyTo ne has been measured to be up to three times softer than conventional Reebok trainers, which explains why everyone finds them so comfortable to wear. Not only the fitness trainers and experts were made to undergo this test, general audience was also asked to try Reebok easy tone and later on they were given a questionnaire to give their response. Following report was generated through findings were made through trial. For all the primary data collected, following questionnaire was used. 1)Your name )What is your age group? O Under 18 ? 18-24 ? 25-35 ? 36-50 ? 50+ 3) Are you a fitness freak ? ?Yes ?NO ?I do workout some times. 4)If yes, how often do you hit a fitness centre per week? ?Daily ?5 times a week ?3 times a week 5)Do you use Reebok gym gear while working out ? ?Always ?Sometimes ?Not actually 6)Have you heard about fitness shoes available in the market these days? ? Yes ? No ? What is that ? 7)If Yes, which of the following are known to you ? ? Reebok easy tone ? skechers s hape ups O MBT ?New balance fit flop 8)Do you own a pair of fitness shoes? Yes ?No ?I would like to. 9)If yes, which one do you have? ? Skechers shape ups ? MBT ? New balance fit flops 10) You wear fitness shoes because ? You love to be in shape. ? Because your friend also own a pair of them. ? Its in the trend these days. 11)Would you like to try newly launched Reebok Easy tone? ? Yes ? No O May be 12)Do you think these fitness shoes actually work ? ? Yes, they are fantastic. ? Its just marketing technique. ? I am not sure. 13) If you are satisfied with fitness shoes, do you think Easy tone is better than its competitors ? yes ? No ?Haven’t tried Easy tone 14)If asked to switch your fitness shoes with easy tone, you would do that because†¦ ? Easy tone is much more effective. ? Because its cheaper in price. ? Because its more trendy than other shoes. 15)Do you think Easy tone can be wore for activities other than gym activities? ? Yes ? No ? No comment 16)Are you overall satisfied with price and features of Easy tone ? ? Yes ? No ?May be 17) Would you be looking for some more fitness stuff from Reebok? ?Yes , they always surprise me with their innovations. ?No ?May be. 8)Would you advice anyone to buy easy tone? ? Definitely ? Probably ? Not sure Out of all the responses which were received, an analysis was done and following report was extracted out of that. Reebok Easytone Reviews It’s a little too early to tell if Reebok EasyTone shoes are up to the task of toning Indian legs. So over the pond to the States I virtually went to see how British women have been finding the comfort and toning properties of these babies. Asking women how their butt was doing and whether they were happy paying $100 may not get me very far. However most women do seem to agree that the shoes are effective.. One of the lady found the style to be rather limiting, but the butt crunching properties could be felt when going upstairs. As part of a general workout th ey did make her feel more tired. Plus there are a lot more styles on the market now. Another lady, found that her calves, hamstrings and butt were no better after using the trainers to get her from sofa to fridge for a week, however she plans to continue the regime for a while longer and hopes to be able to crack walnuts between her cheeks before too long. The very first day I took them out, I noticed right away that there was a very different feel to walking in them† and went on to say â€Å"I certainly feel they were worth every penny† after a couple of months use, claimed a sample. A random sample of men who had viewed the advert agreed that no matter what the price, they were a terrific buy and nothing bad could be said about them. When asked what they thought of the look of the shoes, no-one could remember and a second viewing of the advert was required after which they still found themselves unable to comment. The verdict appears to be, for those who are yet to start an exercise program, or who want an extra workout in the same time frame, they are an excellent buy. For anyone who already has a firm bottom and sculpted legs they are probably not worth the money. To men they appear are the best invention ever made by anyone in the world ever. So how do they work, and more importantly, do they work? It’s time for some science. Reebok Easytone shoes claim to be inspired by balance ball technology. I was not aware that a balance ball was that technologically advanced. No matter. The soles of the shoes feature mini balance balls in the toe, the ball of the foot, and the heel. Also known as instability pods, their function is to put you off balance slightly which causes the leg muscles to work overtime to correct the instability, bringing a wider range of muscles into play and generating more muscle toning activity. Since the corrections are quite small, it is almost unperceivable that extra work is being achieved. However those li ttle pads are all that is required to give a 28% boost to the bottom and 11% more burn to the thighs and calves. Inside a Reebok Easytone you will find a silky soft haven for the feet. The seams have been moved out of the way so your feet will not get any abrasions and the additional padding in the sole make for one of the most comfortable trainers on the market. Don’t waste time! Our writers will create an original "Reebok Easy Tone" essay for you Create order