Competitive Position Essay

In this assignment we tried to look into the Baja Auto’s own position in Indian domestic market and how it has performed in last year compare to local rivals. In addition, we suggest company to invest directly in America’s automobile industry as America and India is more or less similar in terms of operating multinational organisations. As, it is a long term investment and high risk strategy for company, we clinically analysed new market scenario and different aspects of it. 1.0 Competitive Position Baja Auto is ranked as the world’s fourth largest two and three wheelers production company. It is in two wheelers and three wheelers Indian market since 1945 and recognised brand across Asia, Middle Eastern countries, Latin America. Bajaj Auto shares 26.70% of two wheelers market in India, fairly behind Hero Honda Motors which has 41.35% Indian customers, and ahead of TVS Motor Company which holds 18.14%. But when it comes to three wheelers vehicles, Bajaj Auto clearly control the majority of the market with 58.60%, much ahead then Piaggio Vehicles 32.70%. Bajaj’s closest competitor in two wheelers market is Hero Honda Motors. Hero Honda sold 3.72 million two wheelers units, almost double then Bajaj, who managed to sold 1.28 million units. Bajaj Auto is the country’s largest exporter of two- and three-wheelers. During 2008-2009, Bajaj Auto’s international sales achieved an all-time high of 772,519 units of two and three wheelers, representing a growth of 25% over the previous year. (Sources: Automobile Industry report -2012, India). Though, there is a huge difference in terms of selling units between three major players of India’s two wheelers, their growth rate is almost similar to each other. Hero Honda Motors enjoys 15.4% growth in 2012, and it was followed by TVS Motor and Bajaj Auto with 13.3% and 13.2% respectively. (Sources: Annual reports of Bajaj Auto, Hero Honda Motors and TVS Motors-2012). In plant wise capacity Bajaj Auto clearly out plays its competitors. Bajaj Auto has 4 active plants compare to 3 of each for Hero Honda motors and TVS Motors. Therefore Bajaj has upper hand in terms of number of units’ productions. Bajaj Auto’s plants are capable of producing 5 million units of vehicles compares to Hero Honda’s 4.75 million and TVS’ 4 . 50 million of units. (Sources: Automobile Industry report-2012, India). Adopted from Automobile Industry report-2012, India. 2.0 Market Entry Bajaj Auto is highly recognised company throughout the world and has vastly experienced management team. In addition, it has its own technology labs, engineering colleges and very strong labour power. Apart from having a fair amount of domestic market share, it is a leading exporter of India. Bajaj is famous for manufacturing two and three wheelers which have good fuel efficiency and strong outer body and comes in very cheap prise compares to other manufacturers. It is right time for the company to move forward and make its own base in well developed country like The USA, which help company to reduce the good amount of money spent on exporting its products to Latin America and Africa and moreover, America itself has huge crowd who are struggling with current worldwide economic downfall and looking for cheap available options. 2.1 Reason for Entering Into the USA Market PESTLE analysis is an useful analysis tool to evaluate future plans and it helps organisations like Bajaj Auto who is going to enter in new business environment to understand the risk associated with its next move .PESTLE helps company to analyse its position, potential and direction in new market place. 2.1.1 Political Situation of the USA It is very important to assess political condition of new working field before moving abroad. It helps company like Bajaj to make its business strategy. America is strong democratic country like India the motherland of Bajaj Auto and this will work company’s favour as it knows the pros and cons of such a political environment. 2.1.2 Economy The US has the largest and most technologically powerful economy of the world, with per capita GDP of $49,800. US Business companies have more flexibility than any other part of the world in decision to expand their capita plant. . At the same time, they face higher barriers to enter their rivals’ home markets than foreign firms face entering US markets. It is lucrative industry to enter for foreign company like Bajaj Auto. 2.1.3 Social America’s population is 316,668,567 which consist of 79.96% white, black 12.85%, Asian 4.43%. 40.2% of America’s population is 25-54years old. 82% population is urbanised and an annual urbanisation rate is 1.2%. 99% of total population is literate. 2.1.4 Technological highly diversified, world leading, high-technology innovator, second largest industrial output in world; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining. Bajaj Auto will enjoy a good amount of success due to technological expansion of the company which is comparably low in India. 2.1.5 Legal America has strong, fast legal system which gives every individual a fair chance to appeal decision of the court. Supreme court is the highest body who makes the final verdict on any legal issue. 2.1.6 Environment Air pollution resulting in acid rain in the US ; the US is the largest single emitter of carbon dioxide from the burning of fossil fuels; water pollution from runoff of pesticides and fertilizers; limited natural freshwater resources in much of the western part of the country require careful management; desertification. Bajaj Auto developed the technology in recent years and some of its vehicles run on CNG and LPG which reduce the amount of carbon dioxide. This technology gives company an edge over its competitors to gain confidence of the US government to enter into their market. (Sources: http://www.cia.gov/library) 2.2Market Attractiveness DIAMOND MODEL Source: Porter, M. (1990) 2.2.1 Firm strategy, structure and rivalry As mentioned earlier, Bajaj Auto is famous for producing light weight two and three wheelers vehicles which have good fuel efficiency and strong body and it’s new for American population. There is no strong competitor in market at the present that can threat the position of Bajaj Auto in its production range. Bajaj Auto manufactures couple of motorbikes like Pulsar, Duke, and Discover which is heavy but it will not be a good idea to launch them in America as Harley Davidson, Yamaha motors, Kawasaki motors have strong hold on American customers. Bajaj Auto follows hierarchical strategy which resulted in advantages within industries and it helps company to gain upper hand in competition with major players. 2.2.2 Demand Conditions Light motorcycles, the summary say, will outperform other ICE product types and maintain their position as the largest single segment of the motorcycle market in America. This will be due to several factors, including the fastest population growth of any region, the lowest median age and the lowest (but climbing) per-capita GDP. (Source: world demand motorcycles grow). This is good future aspect for Bajaj Auto to succeed in international adventure. 2.2.3 Factor Endowment America has strong and large factor endowments compare to Western Europe. The US has comparative advantages of skilled workers, infrastructure, open market entry for international companies, natural resource and technology. Romalis (2004) provides a quasi-Rybczynski prediction, â€Å"if a country accumulates a factor more rapidly than rest of the world, then that country’s production and exports will systematically shift toward that more intensively use that factor.† The US has well developed technology when it comes to motorbike industry and that attracts Bajaj Auto to gain an entry in this market. 2.2.4 Related and Supporting Industries The US is rich in producing natural resources like iron, lead, petroleum, natural gas. In addition America has the world largest coal reserve with 491 billion short tons accounting for 27% of the world’s total.(Source: http://www.cia.gov/library). Strong supply chain of motorbikes engines parts, raw material for motorbike body, leather and machineries are always key factors in success of automobile business and America provides all these features to Bajaj Auto. 2.3 2.3.1 Target Market Young, universities’ students, African and Asian immigrants, middle class families and small vendors should be first priority as a target market for Bajaj Auto as they share large number of total American population (see 2.1.3). Above mention customers have limited resources of income and other responsibilities and therefore they always look out for cheap available option. The kind of two and three wheelers Bajaj Auto produces are low in prise and have high fuel efficiency. These two points will work in company’s favour and manage to pull big crowd. Once company get established, it can launch the range of heavy weight vehicles to provide competition to giants like Yamaha, Royal Enfield, Honda and Harley Davidson.

Moral vs. Ethical

Moral vs. Ethical Moral vs. Ethical Moral vs. Ethical By Maeve Maddox A reader has asked for a discussion of the adjectives moral and ethical: I have been writing professionally for 40 years and I still cannot get these straight. There seems to be more than a casual or preferential distinction. One difference between the adjectives moral and ethical is that moral has been in the language longer. A similarity is that moral is a translation of the ancient Greek word ethikos from which the adjective ethical derives. Both words refer to human character and behavior. Moral entered English in the 14th century from Old French moral: â€Å"pertaining to character or temperament.† It derives from the noun moralis, from the Latin noun mos in its genitive form (moris): â€Å"one’s disposition.† The adjective ethical entered English in the 16th century with the meaning â€Å"pertaining to morality.† Note: The plural of mos gives us the word mores: â€Å"the shared habits, manners, and customs of a community or social group.† Greek philosopher Aristotle used ethikos as the title of a treatise on the branch of knowledge dealing with moral principles. Clearly, the two words, moral and ethical, are closely related in meaning. In the 14th century, moral meant â€Å"morally good, conforming to moral rules.† Moral stories taught moral behavior. Everything Chaucer’s Oxford student said was â€Å"filled with moral virtue.† The first definition of the adjective moral in the OED gives ethical as a synonym: moral (adjective): of or relating to human character or behavior considered as good or bad; of or relating to the distinction between right and wrong, or good and evil, in relation to the actions, desires, or character of responsible human beings; ethical. Both words, moral and ethical, describe human behavior in reference to right and wrong. Modern usage assigns moral to behavior dictated by internal standards and ethical to behavior dictated by external standards. Sometimes the two types of behavior coincide. For example, taking a child away from abusive parents is both moral and ethical. Sending a child back to abusive parents for legal reasons is ethical, but not moral. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Misused Words category, check our popular posts, or choose a related post below:Dialogue Dos and Don'tsThe Possessive Apostrophe6 Foreign Expressions You Should Know

Origins of the Expression Honi Soit Qui Mal Y Pense

Origins of the Expression Honi Soit Qui Mal Y Pense Honi soit qui mal y pense are French words that  youll find on Britains royal coat of arms,  on the cover of British passports, in British courtrooms, and elsewhere of note. But why does this Middle French expression appear in weighty official uses in Britain?   Origins of Honi Soit Qui Mal Y Pense These words were first uttered by Englands King Edward III in the 14th century. At that time, he reigned over a part of France. The language spoken at the English court among the aristocracy  and clergy and in courts of law was Norman French,  as it had been since the time of William the Conqueror of Normandy, starting in 1066. While the ruling classes spoke Norman French, the peasants (who comprised the majority of the population) continued to speak English. French eventually fell out of use for reasons of practicality. By the middle of the 15th century, English again ascended to the throne, so to speak, replacing French in British centers of power.   Around 1348, King Edward III founded the Chivalric Order of the Garter, which today is the highest order of chivalry and the third most prestigious honor awarded in Britain. It is not known with certainty why this name was chosen for the order.  According to historian Elias Ashmole, the Garter is founded on the idea that as King Edward III prepared for the  Battle of Crà ©cy  during the Hundred Years War,  he gave forth his own garter as the signal. Thanks to Edwards introduction of the deadly longbow, the well-equipped British army proceeded to vanquish an army of thousands of knights under French King Philip VI in this decisive battle in Normandy. Another theory suggests a totally different and rather fun story: King Edward III was dancing with Joan of Kent, his first cousin and daughter-in-law. Her garter slipped down to her ankle, causing people nearby to mock her. In an act of chivalry, Edward placed the garter around his own leg saying, in Middle French, Honi soit qui mal y pense. Tel  qui sen rit aujourdhui, shonorera de la porter,  car ce ruban sera mis en tel honneur que les railleurs le chercheront avec empressement  (Shame on him who thinks evil of it. Those  who laugh at this today will be proud to wear it  tomorrow  because this band will be worn with such honor that those mocking now will be looking for it with much eagerness).   Meaning of the Phrase Nowadays, this expression could be used to say Honte celui qui y voit du mal, or Shame on the one who sees something bad [or evil] in it.   Je danse souvent avec Juliette...Mais cest ma cousine, et il ny a rien entre nous: Honi soit qui mal y pense!ï » ¿I often dance with Juliette. But she is my cousin, and there is nothing between us: Shame on the one who sees something bad in it! Spelling Variations Honi comes from the Middle French verb honir, which means  to shame, disgrace, dishonor. It is never used today. Honi is sometimes spelled honni with two ns. Both are pronounced like honey. Sources History.com Editors. Battle of Crecy. The History Channel, AE Television Networks, LLC, March 3, 2010. The Order of the Garter. The Royal Household, England.

Death penalty Essay Example | Topics and Well Written Essays - 1250 words - 4

Death penalty - Essay Example This essay will outline the debate on death penalty and provide an in-depth explanation of the proponents and opponents of the issue and their differing attitudes. The United States is one of the few nations of the world, which still employs death penalty as a form of punishment for some crimes. The penalty is considered as barbaric and contrary to the values of humanity, as well as American values of human treatment of individuals. However, there are some people who do not object to the death penalty and consider it as a crucial tool that can be employed in the fight against some that have a huge impact on the victim. There are some instances when an innocent person may be hanged to death yet they have not committed any crime. Such mistaking of criminals has led to numerous objections of the death penalty. Since the 1950s, most of the Americans have supported death penalty. There has been, however, tremendous changes in the attitudes towards death penalty since this time with few people supporting execution of murder criminals during the 1960s and 1970s. During the mid-1990s, the debate on death penalty took a new twist with a lot of emphasis been placed on the gender and racial aspects of death penalty. The support for death penalty was low among the blacks, women, as well as Hispanics while white males supported death penalty. Numerous polls conducted in the United States have sought to get know the attitudes of American public towards death penalty. From the studies conducted, it is clear that the attitudes of people towards death penalty are guided by their emotions (Lerne and Wilmoth 234). In the United States, criminal punishment has been riddled with controversy with some people opposing it on the grounds that what motivates law enforcers is revenge as opposed to ensuring that the victims get justice. In most instances, the United States law convicts criminals to death penalties in the case of murders. People who support this point of view hold

Competition law and State Owned Enterprises (SOEs) Research Paper

Competition law and State Owned Enterprises (SOEs) - Research Paper Example On the other hand, the Clayton Act is an amendment to the Sherman Act used for placing restrictions on business mergers. The bill also puts restrictions on the acquisition of other companies that could in turn lead to monopolies or unfair commercial practices. The agency in charge of seeking out free and fair competition is the federal trade commission (Alexander, 2009). The department of justice carries out all investigations on matters concerning the competition also, and the law gives it the authority to call and gather a grand jury to indict a suspect. There are civil and criminal charges in place for any part found guilty of acting against the antitrust laws in the state. Civil consequences of the statues include among others injunctions, divestiture or even cancelation of contracts. The laws have the responsibility of ensuring that there exists a level playing ground for all parties involved. It also serves the function of protection of smaller firms from large enterprises that intend to run them out of business. Lastly the laws protect the final consumer by considering market condition so that they do not suffer high prices for commodities in the market (Mazzolini, 1980). State-owned businesses or the government-owned corporations are legal organizations that carry out commercial activities on behalf of the government. State-owned enterprises are common to natural monopolies and infrastructure. They have the task of providing services and products that are otherwise said to be expensive, and the private sector cannot offer them to the public. They provide goods and services such as railways and telecommunications, mail services and weapons for defense, energy and electricity, politically sensitive businesses, broadcasting, education and healthcare (Drew, 2006). State-owned enterprises have the responsibility of promoting the interests of the public, unlike other organizations whose objects are profit maximization (Thomas, 2005). They

Role of Allied Professional Essay Example | Topics and Well Written Essays - 750 words

Role of Allied Professional - Essay Example However, the pharmacist may refuse to honor such prescription, if in his or her own judgment as a professional pharmacist find that, honoring such prescription may result to total violation of the law. Secondly, the pharmacist may refuse to honor Doctor’s prescription if the drugs prescribed may jeopardize the life of a patient by creating an addiction. In addition, the pharmacist may refuse to honor such prescription if it violates the interest of a patient. Further, the pharmacist has a professional duty of exercising professional duty in ensuring the best interest of patient’s health. Pharmacist also a responsibility of providing counseling guidance to patients on the risk associated with the drug if it is not properly utilized (Buerki & Vottero, 2002). Based on this case it can be observed that the pharmacist observed some of those responsibilities as required by the law. For example, when the Plaintiff/ patient (Patrick McLaughlin) delivered the prescription from Doctor Edwards, the pharmacist (Kathy ODell and Craig Merrick) honored the prescription as ordered by the Doctor. However, he failed to exercise his responsibility by supplying more drugs to McLaughlin despite the fact that the records indicated that McLaughlin had consumed more propoxyphene drugs than required. Further, he failed to caution the patient of the health risk that could result if he consumes an overdose (Legal Inc, 2013). I agree with the court findings in favor of Hooks because, Hooks was not a direct causation of the injuries sustained by Patrick McLaughlin. In addition, Hooks was not attributed to McLaughlin attempts to commit suicide. Secondly, the pharmacists were within their line of professional duty by observing the prescription recommended by the Doctor. In addition, the case was decided based on the principle of Stare decisis. Whereby, the same precedent used in the previous cases was followed. For example, the ruling for this case made based

Study Guide Hitler Essay Example for Free

Study Guide Hitler Essay -Half Austrian and half German. Serves with distinction, wounded returns to Bavaria after war (served in a Bavarian regiment). -German nationalist+supporter of authoritarianism+ opposed to democracy and socialism + racially motivated (anti-Semitism v German Volk) -Pseudo spy for Bavarian govt and runs into the DAP (German Workers Party). Likes their anti-capitalist, anti-Semitic and nationalist message. Anton Drexler is founder/head; Hitler has energy, oratory and propaganda skills. -1920 – 25 Points authored by Hitler/Drexler. DAPNSDAP. Hirtler in charge of propaganda: salute, uniforms,swastika. Also creates armed squads. -Drexler alarmed – power play but loses as Hitler offers to resign and instead becomes chairman and Fuehrer. -1921-23 party reorganization. A) Armed squads reorganized into SA headed by Ernst Roehm: intimidation and violence. B) 1921 Newspaper – People’s Observer  C) Julius Streicher gives Hitler support (rival right wing group in Bavaria) D) Hermann Goering joins party in 1922. Aristocracy/high society makes party â€Å"more respectable† 1923 – 20,000 members – powerful mainly in one part of Bavaria. 1923 – Beer Hall Putsch: successful example of Mussolini and weaknesses of Weimar: a) hostility of elites (top army brass, aristocracy, industry); b) limited popular support, and economic problems. c) Nostalgia for Kaiser and Imperial Germany, not used to democracy d) Economic problems: costs of WWI and debts, reparations, new welfare benefits provided by State (health insurance, housing), hyperinflation because of Ruhr crisis. e) Association with defeat in war – Treaty of Versailles, November criminals and stab in the back myth. Hitler plots â€Å"March on Berlin† with Gustav von Kahr (ultra-conservative leader of Bavarian govt) and General von Lossow (local head of army). However, poor planning, not enough public support, too much reliance on General Ludendorff, Kahr and Lossow back out at last minute. Nov 8, Hitler announces a â€Å"national revolution† and next day marches into Muncih with 2000 SA. Easily crushed by police and 14 Nazis killed, Hitler arrested for treason. Consequences: Nazi party banned. Hitler gets onto national stage and attracts attention of other right wingers; B) Muellers Grand Coalition (SDP, Center and Stresemann’s party). C) United Opposition: formed by media magnate Hugenberg – has DNVP, Pan-german league, Nazis, leading industrialists. Draft a â€Å"Law against the Enslavement of German People†. Referendum in 1929, but lose. D) Oct. 1929 Wall Street Crash and Great Depression – 32% unemployment (6 million) – industrial workers lose jobs for extended time, middle class and small businesses affected. 42% fall in GNP. World trade collapses (protectionism and tariffs). Peasants hit by collapse of agr prices; industrial workers are unemployed. 50,000 businesses collapse and banks fail. Loss of confidence and despair. Nazi  organization: use of modern propaganda techniques (Goebbels); exploitation of scapegoats; strong party structure and organization After 1930 –Presidential Government – and rule by Emergency Decree (art 48): every govt rules by emergency decree. Bruning (1930-32) Center Party; von Papen (May-Dec 1932) also Center but more right wing; General Kurt von Schleicher (Dec 1932-Jan 1933) no party affil. E) Muellers coalition collapses March 1930. Meissner, Gen. von Schleicher and Hindenburg are all conservative nationalists and get Bruning in. When Reichstag rejects his austerity budget, he invokes Art. 48. Calls for elections F) Reichstag elections 1930 on yield no mandates: 1930 Election – Nazis get 18.3% (2nd after Socialists)†¦800,000 to 6.4 m votes. Nationalists lose half votes to Nazis, middle class democratic parties lose the most and extremes gain, socialists lose ground to KPD. G) Bruning continues as Chancellor – Presidential Govt. May 1932 dismissed. A monarchist, against democracy, anti- Socialist. Failed economic policy of balancing the budget, over-relied on Hindenburg and Art 48. Successes include Allies evacuate Rhineland; Hoover memo suspends debts and reparations; abolished by Lausanne Conference. H) 1932 Reichstag election – brutal street violence; Bavarian left-center govt removed by Papen. Nazis win 37.3% and are largest party; center parties collapse and only KPD gains (14.3%). Dec 1932, von Papen humiliated after no-confidence vote; fails to dissolve Reichstag. Schleicher now has doubts. Hitler, Hindenburg and Papen try to resolve impasse – Hitler wants Chancellorship and rebuffed. Nov 1932 new elections called and Nazis only get 33.1%. Schleicher insists von Papen be replaced; 2 month rule by Gen. von Schleicher. Wants to have left/trade unions join and to split Strassers from Hitler. Fails because trade unions doubt him, landowners and businessmen have no trust. Hindenburg agrees to a Nazi-Nationalist coalition = Hitler appointed Chancellor. Papen, Hindenburg’s son oskar, landowners, industrialists and army support him. Why did Nazis succeed? 13 m voters; appeal to middle class and Protestants; high in north and east; peasants and farmers, Mittelstand (shopkeepers) and white collar workers; appeal to youth, â€Å"politics of anxiety†, becomes genuine people’s party by 1932 Political methods: propaganda, canvassing (posters and leaflets), technology, mass suggestion, scapegoats and unifying theme, violence. The Legal Revolution: 2/12 Nazis in Cabinet; no majority in Reichstag although  the NSDAP is largest party; President can dismiss Chancellors at will. Plus side: has largest party; conservatives must choose between him and possibly Communists or civil war; he can use resources of the state. Calls for new Reichstag elections for March 1933 within 24 hours. Violence, intimidation, 69 people die Hitler’s â€Å"A ppeal to the German people† blames everything on communists and democrats, idea of a â€Å"national uprising† Promised 3 million reichsmarks from key industrialists. Feb 27 – Reichstag Fire – a communist accused therefore play up fears of a communist led coup. Next day, Hindenburg signs â€Å"Decree for the Protection of the People and the State† – most civil and political liberties suspended (hundreds are arrested). Election results 5 March: Nazis win 44% but needs 52 seats won by nationalists. Changes in laws need 2/3 majority to pass. March 1933 – the Enabling Act – to give him and cabinet full powers for 4 years – a â€Å"legal dictatorship†. At vote, communists denied entry – Hitler promises to respect rights of catholics and gets ZP support; only SPD vote against and bill passes. Policy of Gleichschaltung: Nazification, a merging with German society during 1933-34. Revolution from below (the SA) and Revolution from above (leadership). Main focus on Federal States, political parties and indpt trade unions. A.Federal States: violence and intimidation threaten to spin things out of control. 31 March 1933 law to dissolve regional parliaments, reformed with acceptable majorities and to be controlled by Nazis. 7 April – Governors posts created usually run by Gauleiters (regional party leaders). Jan 1934, regional parliaments are abolished. No more federalism. B.Trade unions: connects to socialism and Catholicism. May Day declared national holiday, SA/SS occupy offices, seize funds and leaders are sent off to camps. DAF (German Labor Front) set up and run by Robert Ley with 22 m. members. C.Political parties : need for a one-party state. Communists outlawed after Fire; Social Dems assets seized in June and they are banned; in late June most parties agree to self dissolve; July Catholic Center Party disbands. Chancellor to Fuehrer: 6 months in – Hitler is stronger position. Calls for end of revolution 6 July 1933. Needs to stop free-for-all and violence. SA and Roehm call for a â€Å"Second Revolution† – SA more made up of unemployed youth.Had made the street revolution earlier but hadn’t benefitted. Roehm calls for National Socialist Revolution – SA has 3 m men in 1934, much larger than army. But army could do a coup, and has the  military expertise to fulfiull foreign policy of Hitler. June 29-30, 1934 – Night of the Long Knives Hitler before comes to agreement with Generals Fritsch and Blomberg. 200 murdered by SS, old scores settled (Schleicher and Strasser) Results: SA leaderless and powerless now. Army behind Hitler. Emergence of the SS. Hitler has firmed up own position August 2 – Hindenburg dies: Hitler merges two offices and takes title of Fuehrer. RULE OF HITLER Great Depression: Conditions in 1933 1)Collapse of trade and especially exports 2) Although an industrial powerhouse, many firms go bust in GD 3)Mass long-term unemployment. 4)In agriculture, food prices fall and farmers get poorer 5)In finance, collapse of banking sector Economic Policies Given the huge problems – 3 choices A.Anti-capitalist, socialist program embodied in 25 Points (profit-sharing, social security, nationalization) B.Deficit financing (Keynesian economics) C.Defense economy Concept of Autarky = self-sufficiency Focus on: Public works projects, Jobs for unemployed. 1) Schacht and the New Plan President of Reichsbank and later Minister of Economy held a leading role in 1923 crisis and creation of new currency under Stresemann. Note: the economic low was reached in end 1932, early 1933 (but no one knew) Solutions: A.Banking- government moves to control capital and to set low rates B.Financial benefits given to groups such as farmers and small businesses also tariffs, subsidies, reduced debts, tax concessions, allowances, and grants C.Public works: reforestation, land reclamation, new roads, housing By 1936, emphasis shifts to rearmament D.Bilateral trade agreements with focus on barter E.New Reichsmark policy as only currency to be used F.Mefo Bills – like t-bills 2 Problems remain: Fear of inflation, Balance of trade deficit. 2) The 4 Year Plan (1936) â€Å"Guns or Butter?† Deficit financing has been hidden by financial tricks Schacht proposes reduction in arms spending Hitler sides with the army: Military+Economymust be ready in 4 years. Goering made Czar of the 4 year plan Goals: Autarky and rearmament, Nazi control of economy becomes much tighter. 3) War Time Economy Goering replaced by Speer in 1942 Germany is on a total war footing Social Policies Ideology: 4 main tenets A) Race : Aryanism, racial purity, Social Darwinism, anti-Semitism, euthanisa, eugenics B) Authoritarianism – the Fuehrer principle C) All Germans together : Lebensraum D) Volksgemeinschaft One Volk, harmony, no social class divisions or distinctions Social Groups Industrial workers (very left): Trade unions closed down DAF established: Beauty of Labor (beautify working conditions) Strength through Joy (vacations, sports, excursions, etc) But – shortage of workers and real wages stay low as war starts, more women work and Labor camps set up. Peasants and small farmers: Nazi sympathy for their plight. They are the Volk. Initiatives include: write-offs, cheap loans, land. But – after initial benefits, resentment and lower standard of living Landowners: initially suspicious of low-born Hitler and his socialists; then buy in and support Middle class: low rate loans and encouragement for their businesses Upper Class and Big Business: prefer Hitler and Fascists to communism Education and Youth Centralized: Indoctrinate, brainwash: no more individual choice One curriculum and one textbook Teachers trained the right way: Nazi Teachers League Understand what it means to be German Pride and nationalism Obedience and loyalty Emphasis on physical fitness and education Hitler Youth compulsory in 1939 League of German Maidens: Teamwork and group work is a big feature But – teacher shortages, anti-academic curriculum focus Religion: Most Germans are Christian: 2/3 Protestant. Church is a powerful institution. A) Conciliation; policy of coordination Concordat July 1933: Features non-interference. B) Aggressivenes 1935-45: Nazis become more anti-Christian. German Faith Movement: Never gathers strength.Teutonic paganism – a made-up religion. Anti-religious measures: Close churches, arrests, taking away funds, closing youth groups. → Pope speaks out against Nazis in 1937 Women and Family Population growth falling, female employment expands, too many unmarried women. Nazis oppose emancipation and feminism. Goals: Kinder, Kuche, Kirche More children Care for husbands and kids Stop employment of women Between 1933-36, married women debarred from work. Loans to young women to stop working and many need to get married. Some Nazi women’s organizations are used as covers. Economic necessity in 1937: Despite discrimination – need for more cheap labor Marriage loans, family allowances, taxes reduced, maternity benefits, anti-abortion laws, contraception restricted. Lebensborn Racial purity, SS brothels. Result: Births increase, divorces increase, marriages flat Culture Reich Chamber of Culture headed by Goebbels who is also Minister of Propaganda Burning of the books Modern music, jazz, etc are degenerate 2500 writers leave Germany Modern schools of art held in contempt Degenerate Art v Great German Art Outsiders a)Ideological opponents (Communists, religious, military leaders) b)Biologically inferior (sub-humans) sterilization – 350,000 euthanasia – 70,000 c) Asocials (Homosexuals) Political Gleichschaltung – Policy of Coordination All political parties banned July 1933 State parliaments abolished 1934 Civil Service purged Gestapo established SS headed by Himmler established 1925 – elite bodyguards first , then run all police actions (incl. camps) First camps established in 1933 for regime’s opponents: Labor Concentration Death camps after 1939 Emigration for Jews and others encouraged/preferred up to 1939 Steps against the Jews: Nuremberg Laws, Kristallnacht (Night of Broken Glass), Poland, Final Solution decided on at Wannsee Conference.