Political Power Essay

Power could be defined as â€Å"the ability to bring about change† according to Beyond intractability. Org website (http://www.beyondintractability.org/essay/Power/). Power is the ability to influence the behavior of the others so as to make them do what one wants.   It entails authority and control.   Thus political power is the authority to control a society. Political power can be manipulated leading to negative use by the person or people holding it.   There are many bad uses of political power that can result from holding of the power by an irresponsible person. Such negative uses include dictatorship, corruption and oppression of the society.   Political power can also be used positively to bring benefit to the society. Political power can be used to foster development, to maintain peace and also to protect the society from external threats of invasion.   Despite the various harsh negative uses of political power, the positive uses shows that political power does not always lead to negative outcomes.   Political power can be effectively used to bring a lot of benefits to the society. Political power can be used to perpetrate corruption. People holding much political power can use it inappropriately to engage in corruption. This is particularly possible when much of the power is vested on a few individuals and there is no evaluation or a watchdog on how this power is used.   When they get enticed to use it for their personal gain at the expense of the society for which they are supposed to care. Corruption is abuse of office or power by a person so as he can benefit.   Corruption can take many forms all leading to great injustices to the society.   When political officers get into office, they do so promising the society that they will serve the interest of the society before their own personal gains.   However, after gaining political power they uphold their personal gain.   This can be done through misappropriation of funds whereby the offices holding the power spends public funds in a way that do not bring benefits to the society.   Example of misappropriation of funds may entail starting of projects that are not necessary to the society or buying luxurious facilities for their use at the expense of other more necessary facilities. Corruption can also be in the form of embezzlement o f public funds.   The political officers may use their power to get access to money belonging to the public through public corporations and use it for their own personal interests.   Facilities of such corporation can be wrongly used to serve the officer’s personal interests instead of their official use. Such actions lead to poor performance of such corporation leading to difficulties in meeting the essential needs of the society.   If funds belonging to a government institution, for example, a hospital are embezzled by a few officers, it means the hospital is not able to offer the services it is supposed to offer efficiently.   This will lead to great suffering of the members of the society which depend on such public facilities.   It is also very unfair to the society as they pay taxes so that they government can offer such services Corruption can also take the form of bribery.   This is mostly an administrative form of corruption but can be perpetrated by political officers also.   This involves the political officers asking for bribes from the members of society or organization so as they can be offered certain services. The is bribes may range from small gifts to massive amounts of money.   This form of corruption means the members of society are not able to get services without parting with other resources.   It also means there is segregation of some of the members of the society as, if they fail to raise the required bribes, they don’t get access to the resources they need. Corruption can also lead to extortion.   This entails use of political power by the political officers to obtain something by illegal threats.   The political officers may acquire interests in certain things or organization though issuing threats or force. Corruption has various costs to a country. If corruption is predominant in a country all the members of society are affected in one way or another.   The wealth of such a country is significantly affected leading to decrease in income.   The economy in a very corrupt state will be poor and businesses will not operate efficiently.   Consequently, the national income goes down affecting the ability of the government to offer essential services to the citizens.   This will inform produce a society with high rates of illiteracy and poverty. In the animal farm Napoleon used his political power to instigate corruption. He changed the rules from what had been collectively agreed to what suited his rule. He also used the dogs to threaten any other animal that opposed his rule. Napoleon and the other pigs also used the property of the farm for their own use which the other animals had not agreed upon. Another negative use of political power is establishment of dictatorship rule. Dictatorship is whereby the country is controlled by one or a few individuals who have absolute power.   Their rule is not limited by anyone, buy law constitution or social justices.   They do what they want. To gain dictatorship political officers use the little political power they have to gain more political power and later dictatorship. This is possible through oppression of nay efforts that try to limit their power.   This may include execution of people who take the bold steps of openly opposing the rule of these political powers. Dictators take control of all the operations of power in the country and personalize the rule. The dictatorship may also regulate all the actions by the citizens of a country and directs these actions against the will or consent of the citizens. Dictatorships are influenced by different factors that lead the political rules to misuse their political powers and establish dictatorships.   There are many countries that have been ruled by dictators or are still ruled by dictators.   An example of dictatorship is Stalinism which was a regime established by Joseph Stalin who lived between 1878 and 1953 in United Social Soviet Republic.   He was a dictator party leader whose tenure and campaigns costed lives of millions of people.   His rule had big negative impacts on USSR but also transformed it from a peasant society to an industrial nation http://www.spartacus.schoolnet.co.uk/RUSstalin.htm). In George Orwell’s book (1996), the Animal Farm he depicts how people struggle collectively to oust bad rule but after gaining control, the few who are trusted with the political power misuse it and establishes an autocratic form of rule whereby they dictate on all the others. The pigs in the story, after chasing the oppressive farmer, took control of the farm and established a rule that oppressed the other animals.   The animals that questioned the rule were mistreated or executed (Orwell 1996). Napoleon used mudslinging to destroy the reputation of Snowball and later chased him from the farm. These represent how people who oppose a dictator are exiled after being falsely accused. This is typical of many African and Asian countries whereby after gaining independence form colonialism, the leaders who were trusted with political power went ahead to establish dictatorship.   Other examples of dictators include Idd Amin of Uganda, Hu Chi Minh of North Vietnam and Saddam Hussein of Iraq. Oppression of citizens and social injustices is another form of negative use of political power.   In this case, the leaders vested with political power bends the rules, and perpetrate actions that lead to oppression of citizens and social injustices.   The law or the constitution is not followed and injustice becomes inaccessible to the society. In political system where citizen are oppressed and social injustice are rife, a few people control all the branches of government. Though the legislative, executive and judiciary branches of the government may seem independent, this few individuals use their political powers to influence the operations of all these branches.   This results to much suffering of the citizens and as the justice system are faulty the citizen lack a forum through which their injustices can be addressed. In modern society this can be done through practices like imposition of rules that are aimed at oppressing the citizens, coercion to the citizens to carry out certain actions and even detention of some prominent people.   The individuals who do not support the action of those with the political power are mistreated, detained or exiled. In the Animal farm, George Orwell depicts how this is done when the pigs after assuming the leadership of the other animals change the rules and uses their power to mistreat, overwork, starve and oppress the other animals (Orwell 1996). Napoleon sold off one of the animals after he became old and less productive. This was an act of betrayal and oppression of the animal as he had also taken part in the fight for their independence. Political power can also be used for the benefits of the society. There are many countries that have benefited from positive use of the political powers to the benefit of the society.   One way political power can be used positively is fostering development can greatly be encouraged through use of political power to create the right environment for development.   Political powers can be used to enact laws, policies and strategies that are aimed at fostering development.   As the political systems influence much of the economic systems in a country, positive use of the political power can lead to positive influence on the economy of a country. The leaders vested with political power can use this pioneer to help enact laws or policies that will encourage investment and expansion of the economy.   This may be in the form of providing incentives to investors building effective infrastructures or providing a conducive environment for the economy to flourish.   In the animal farm the decision to build the windmill was a good idea aimed at bringing development in the farm and comfort to the animals (Orwell 1996). United States is a country that has massive political power that is used to foster developments. The country has a free market economy with policies encouraging conducive running of the economy.   A country like Japan has used their political power to build good infrastructures that facilitate expansion of their economy. Another positive use of political power is maintenance of peace. Political power can be effectively used to maintain peace and order in the country.   As peace is very crucial for co-existence and development in a country such use of political power can lead to great benefits to the country.   The political leaders can use their authority and influence in the society they rule to encourage and foster good co-existence between the citizens.    Political powers are needed to ensure that this happens.   The leader will use their authority to maintain order in the society and make sure that no one single citizen engages in practices that infringe the rights of others.   Laws are enacted to guide the actions of the citizens and certain strategies are taken to make sure that the laws are followed.   Political power is used to establish such a system. In Orwell’s Animal Farm the animal had collaborated to come up with rules that were aimed at maintaining good co-existence among the animals (Orwell 1996). This is done through establishment of a police force that maintains law and order and enactment of a court system that ensures that those who defy the rules are punished or forced to obey. Political power also establishes the judicial system that offers a forum through which the citizens can have their rights enforced.   All these actions bring peace by ensuring all the citizens get their rights and live harmoniously. Another positive use of political power is protection of the country from invasion. Political power is used in establishment of strategies of ensuring that a country is protected from external invasion.   This will ensure that the country is safe from threats and can concentrate on development. Political power can be utilized in different ways to protect a country from external attacks.   First the political leader can use their power and authority to help and lead in formation of policies aimed at protecting the country from possible attacks.   These policies may include security measures aimed at preventing such attacks.   The political powers can also establish armed forces that will maintain the security of the country and defend it in case of any external attacks. Weapons can also be acquired either through manufacturing or purchase form other countries aiming at providing a security measure to prevent or defend an attack.   Political leaders can also use their authority to established partnerships links with other countries aimed at fostering co-operation thus minimizing threat of attack from those countries.   These co operations may also be used as partners in maintenance of the peace of the country.   Such partners will collaborate in case of an attack or in strategies aimed at minimizing possibilities of an attack. In Orwell’s Animal Farm he depicted good use of political power when the animals united in their fight against Mr. Jones, the earlier owner of the farm. Because of this unity they were able to defeat Mr. Jones (Orwell 1996). Political leaders can use their authority to influence the practices of their country so as to prevent any actions that may trigger attacks from other countries.   Such actions may include neutrality in conflicts involving other parties. Countries in Europe have formed the European Union aimed at co-operation and collaboration in different issues.   This union unites the country hence minimizing the possibility of attack of one country by another.   There are many such unions that have been formed for such purposes including organization for economic co-operation and development (OECD) and the African Union (AU). Other countries in Europe and other places have formed NATO which is aimed at collaboration to prevent attacks form other countries.   All these efforts are aimed at protection of the individual countries and are established by political powers Political power can be used to instigate very bad and harmful activities in a country such as corruption, dictatorship and oppression of citizens. These activities lead to a lot of suffering and deterioration of economies of such countries.   However, political power can also be used to establish policies and practices for the benefit of a country. Political power is a key ingredient for development, peace and safety of a country.   Actually for country to be successful it must have a good and strong political powers that will help instigate the success.   Ã‚  Thus, it is evidence that political power does not always lead to negative outcomes.   It can be used effectively to produce many benefits to a society. Reference: Beyondintractability.org. Power. Retrieved on February 6, 2008 from http://www.beyondintractability.org/essay/Power/ Orwell G. (1996).Animal Farm. New York; New American Library. Spartacus educational. Joseph Stalin. Retrieved on February 6, 2008 from http://www.spartacus.schoolnet.co.uk/RUSstalin.htm

Mang Inasal

Pre-Mang Inasal At age 10, Sia already helps out in the family business, stacking merchandise, taking inventories or manning the counter after school. It was with the family business that Sia developed the sixth sense for business. By age 20, he was already running multiple businesses which include a photo developing store (Injap Color Express), a 58-room three star hotel (Four Season Hotel), and a laundry shop (Mister Labada). Founding of Mang Inasal The start When a 250-meter slot in Robinson’s mall in Iloilo, was presented to Sia, he immediately reserved it despite not knowing what to put up yet.With P2. 4 million of borrowed money, Sia decided on inasal as the most viable dish after analyzing the different culinary specialty of the 16 regions. It was a unique entry to the saturated chicken business. Hence, in December 12, 2003, he opened the first store of Mang Inasal. Sia positioned Mang Inasal as an alternative quick service restaurant that serves charcoal-grilled chicke n, wrapped its rice in banana leaf and uses bamboo sticks for its skewers. He also offered unlimited rice, becoming the first quick-service restaurant to do so.At the beginning, Sia had to work long hours and helped in the cleaning of the store. After which, he would prepare and marinate the chicken for the next day. Sia also had no system for running the operation and no commissary to supply the raw materials. Not long, Sia’s Mang Inasal became a critical success in Visayas. Within a year, Sia opened another branch in Roxas City. In the second year of operations, he opened six more and in the third year, another 20. Success and expansion Sia had a lot of franchise inquiries but he held off until 2005.He joined the Philippine Franchise Association. Not long after, he brought the Mang Inasal to [[Luzon]. He also developed several monitoring procedures to safeguard quality and cleanliness. He also established a research and development team for product development. He also impl emented advanced online supply ordering system for his branches. To date, there are 306 branches nationwide. Aside from Mang Inasal, Sia also revived the Deco in 2007 after he partnered with the owner’s children.Deco is considered the original batchoy, started by a young butcher name Deco Guillergan Sr. in 1938. Acquisition of Jollibee Sia had plans of going public in 2010 but in October, publicly-listed company Jollibee Food Corporation announced it has acquired 70% of Mang Inasal Philippines, Inc. for P3 billion. Of which, Jollibee paid P200 million to the parent firm Injap Investments, Inc. , which still held the remaining 30%. In December, Jollibee paid the 90% balance while the remaining 10% will be paid over three years.Mang Inasal’s total branch of 303 will contribute 5% to Jollibee’s worldwide system sales, five percent to its revenue and seven percent to its operating income. Sia and Ferdinand Sia will sit as part of the Board of Directors of Jollibee. Awards Sia was the Small Business Entrepreneur winner handed out by Ernst and Young in 2010. He also received the Urban Leadership Award from the Canadian Urban Institute because of his outstanding contributions to the enhancement of the public realm and the quality of life in the Metro Iloilo-Guimaras area.

Open Medical Marijuana Delivery Service Full

County Guidelines |Page Chapter 1: Obtaining a Doctor’s Recommendation A doctor’s recommendation will allow you to take the next critical step of obtaining a Medical Marijuana Card through California’s MMP Program. No official registration is required to obtain a doctor’s recommendation. Marijuana can be recommended by a doctor for ANY serious condition for which it provides relief; over 250 uses have been reported. Resource: To see a sample Doctor’s Recommendation go to: http://www. canorml. org/prop/MDRecForm. jpg WARNING: Beware bogus clinics!Some unethical doctors are charging clients extra for socalled â€Å"cultivation licenses† supposedly entitling them to grow more than the normal number of plants. There is no such thing as a â€Å"cultivation license† under California law. Any patient with a California physician's recommendation may legally cultivate or possess as much marijuana as they need for their own personal medical use, and no more. No physician can authorize them to cultivate more (they can only testify in court that a certain amount of marijuana is consistent with the individual patient's needs, and they do not have professional competence to prescribe plant numbers).Resource:To find a California Physician you can go to: http://listings. canorml. org/physicians/listings. lasso 3|Page Chapter 2: Obtaining a California Medical Marijuana Identification Card The next step to starting a Legal Medical Marijuana Delivery Service is to obtain a Medical Marijuana Identification Card through the California Medical Marijuana Program (MMP). This identification card will allow you to legally carry a given amount of Medical Marijuana as outlined in your counties bylaws, and to be recognized as a caregiver for your patients.In other words each county has their own guidelines as to how much marijuana each caregiver can carry legally for each of their patients. Establishing yourself as aMedical Marijuana Caregiv er will allow you to legally serve your patients. Resource:To apply simply fill out the form located at: www. cdph. ca. gov/pubsforms/forms/CtrldForms/cdph9042. pdf After you have completed this form it is best to apply in person at your local County Department of Public Health for expediency purposes. You can do it online or via fax, but this can take months to complete. Resource:You can ind your local County Department of Public Health by going to: http://www. cdph. ca. gov/services/Pages/MMPCounties. aspx When you apply you will need to bring the necessary documentation which includes: a) b) c) d) Your Application Form Your Physician’s License Number Your Doctor’s Recommendation Form You will also need to supply personal information to prove residency such as a driver’s license, utility bill, or government issued photo ID. 4|Page You will need to pay the application fees and be photographed. The application fees vary by county and are usually $66. 00 + admini strative fees.To ensure the application process goes smoothly and to give yourself the best chance of not having any unforeseen obstacles it is always a good idea to take an individual who has signed documentation stating they are a patient in your care. We will talk more about the necessary patient care documentation later. It is important to understand that to be a register primary caregiver for more than one patient you must live in the same county as all of your patients. It is strictly forbidden and illegal to operate a delivery business across county lines. 5|Page Chapter 3: Starting The Business / NonprofitStep 1 – Your Delivery Business / Nonprofit Name The first step in creating your new medical marijuana delivery business is to think of a name for your new business. Most medical marijuana collectives and coops use the terms collective, caregiver, or something of that of that nature in their name. You’ll also need to make sure that your physical address reside s in the city and county that your delivery business will be operating in an. It is also important to note that this physical address cannot be a P. O. Box. Resource: Make sure to check the availability of your nonprofit name by going to: http://www. sos. ca. gov/business/corp/corp_naav. tm Step 2 – Start a Nonprofit Organization Next we will need to create a Non-Profit because nonprofits are the only types of organizations that are allowed to operate as medical marijuana patient care givers. This is also the quickest and easiest way to get into the medical marijuana industry. The best way to set this up is to place yourself in the role of president of the Non-Profit. This enables you to recuse yourself of responsibility for the actions of other members. Your membership agreement will outline the rules for membership and no one can join or become a patient unless they have agreed to the membership guidelines.The process of starting a nonprofit organization generally involves: 1. Drafting Bylaw 2. Submitting Articles of Incorporation to the State of California Drafting Bylaws Drafting Bylaws sets forth the structure of the organization and creates a governing board with final authority for the organization Resource: For an example of Nonprofit Bylaws go to:Link 6|Page Completing and Submitting Articles of Organization To incorporate as a nonprofit in the state of California you will need to complete articles of organization and submit them. There is generally a $30. 0 filing fee for these forms. Resource: Articles of Organization Forms www. sos. ca. gov/business/corp/pdf/articles/corp_artsnp. pdf To submit this form you will need to go to one of the 2 regional offices located at either: Sacramento Main Office 1500 11th Street Sacramento, CA 95814 (916) 657-5448 Or Los Angeles Regional Office 300 South Spring Street, Room 12513 Los Angeles, CA 90013 (213) 897-3062 Step 3 – Creating a Website The next step is to create a website. If you do not have any experience creating websites do not be frightened.You can register a domain name (URL) at one of the many registration services found online. You can then use one of the many web site builders also found online that allow you to do simple drag and drop web design that enables even a novice to create a website with absolutely no programming skills necessary. Please note that it is also a good idea to utilize this URL for your e-mail account. Many of the registration services allow you to do this and it looks much more professional than having a generic e-mail address like Gmail. All told you can expect to spend between $30. 00 and $50. 0 getting your website up and running and this can be achieved in as little as a couple of hours. 7|Page Step 4 – Financials In the next step we will be establishing the necessary financial aspects for our Non-Profit. The first of which is a bank account and a FEIN Number. To set up a bank account simply go to your local branch and tell them you would like to set up a business account. You’ll need to provide them with the necessary documentation including the documentation for your Non-Profit. To obtain a seller’s permit, which we will talk about later, you will need to obtain your FEIN Number.Resource: For a simple form that you can give your bank which includes the legal name and structure of your medical marijuana delivery business as well as your physical mailing address go to: http://www. irs. gov/pub/irs-pdf/fss4. pdf Resource: To get your FEIN Number go to: http://www. irs. gov/businesses/small/article/0,,id=102767,00. html Step 5 – Obtaining a Sellers Permit Now it is time to get your Sellers Permit. The sellers permit is one of the most important aspects in keeping your medical marijuana delivery business legal. A sellers permit allows you to pay taxes on your business.Even though you are operating a nonprofit, you are liable for taxes. We have devoted an entire chapter to taxes found late r in this book. You’ll need to get your Sellers permit from the California State board of equalization. All you will need to do is bring all the documentation we’ve outlined in the previous sections and go to the local office of the board of equalization and make an estimated down payment based on your estimated quarterly income. This down payment will be very small if you currently only have one patient, which will generally be the case.Resource: For a California Sellers Permit Application Form, as well processing instructions go to: http://boe. ca. gov/pdf/boe400spa. pdf 8|Page Step 6 – Obtaining a Business License Now it is time to get a Business license. To do this we will need to fill out the necessary form depending upon what town or county you live in. The easiest way is to simply Google â€Å"business license† + your town or county. Next you will need to go to your county specific business license branch, with your documentation, and simply tell t hem you will be operating at a †Home Healthcare delivery surface†.Resource: For county by county business license application instructions go to: http://www. cityapplications. com/business-licenses/CA-California/biz-California. html 9|Page Chapter 4: Operating The Business Now it is time to discuss the operations and management of your medical marijuana delivery service in regards to staying compliant with California Law. Membership The lifeblood of your business will be membership because if you do not have anyone to deliver to you will not be making any money. To join your Non-Profit and become a patient each member will have to agree to your membership terms.Legal Application Requirements To legally operate in the state of California you must perform certain steps when taking on new members or patients. Step 1 – Verification You must verify each member’s status as legally able to be a patient under your care. The way that you do this is by verifying thei r medical marijuana identification card number. Resource: To verify a potential patient’s medical marijuana card go to: http://www. calmmp. ca. gov/ Step 2 – Primary Caregiver Form Next you will need each person to sign a form designating you as their primary caregiver.Resource: You can find a sample form by going to: http://www. peaceinmedicine. org/PDFs/PrimaryCareGiver. pdf 10 | P a g e Step 3 – Membership Form For you to legally distribute Medical Marijuana to your patients they must be members of you Nonprofit. To become members they need to simply fill out a membership form. Resource: For a sample membership for go to: http://www. greendotguy. com/Membership-Agreement. pdf 11 | P a g e Chapter 5: Products / Medical Marijuana If you have not already you’ll need to acquire the products or medical marijuana you will be providing to your patients.This is an important step because you must make sure that you acquire your products lawfully. As per Califor nia law collectives and cooperatives can only acquire medical marijuana from their own members. This means you can only acquire medical marijuana grown by fellow members of your collective. In other words before you can purchase medical marijuana from a grower they must first be a member of your collective. This is very simple to do. Simply have the grower or growers sign a membership agreement before you obtain the medical marijuana you will be delivering to your patience from them.This allows your operations to consist of acquiring medical marijuana from one of your nonprofit members and distribute it to your non-profit patients. This is what we call a closed cycle. Resource: For a sample membership for go to: http://www. greendotguy. com/Membership-Agreement. pdf 12 | P a g e Chapter 6: Revenue Members of your non-profit may reimburse you for medical marijuana that has been allocated to them in the amount necessary to cover overhead and operating expenses as well as services prov ided. This means that members can reimburse you for your delivery service through reasonably calculated compensation.This is the way in which you want to record accrued revenue in addition to the overhead costs. 13 | P a g e Chapter 7: Possession, Delivery, and the Law As per California law a primary caregivers may poses a certain amount of medical marijuana for each patient under their care. If you are operating your delivery business and you have more than the personal legal limit of medical marijuana you should have supporting records readily available showing that you have under the legal limit allowed for the number of patients you have under your care.This is especially important when you’re transporting medical marijuana for delivery. Primary Caregiver To be classified as a primary caregiver the Supreme Court has set forth certain requirements: a) A primary caregiver is an individual who consistently provides caregiving; independent of any assistance in taking medical marijuana at or before the time he or she assumed responsibility for assisting with medical marijuana. † People v. Mentch(2008) 45 Cal. 4th 274, 283 (85 Cal. Rptr. 3d 480, 195 P. d 1061) b) The person must show â€Å"a caretaking relationship directed at the core survival needs of a seriously ill patient, not just one single pharmaceutical need. † Id. at p. 286. To be classified as a primary care giver it is important to operate within these guidelines. SB 420 allows caregivers to be compensated for their services but it does not authorize the sale of marijuana itself for profit. Therefore, to run a successful medical marijuana delivery business it is recommended that you 14 | P a g e tipulate your compensation is being accrued from the service of medical marijuana delivered in the form of donations. California State Law It is important to note California State law and how it pertains to a medical marijuana delivery services. 1. Patients and caregivers with a state-issu ed ID card are immune from arrest and allowed to possess whatever amount the law allows them. 2. Patients and caregivers without a state-issued ID card, even with a physician’s statement or county entitlement, are subject to case by case scrutiny that can lead to arrest.As per California State law, possession and cultivation of marijuana grants immunity to patients and caregivers who possess or cultivate marijuana for personal medical use based on the recommendation of a Physician and within county guidelines of residence. 15 | P a g e Chapter 8: Taxes In October 2005, after meeting with taxpayers, businesses, and advocacy groups, the Board directed staff to issue seller’s permits regardless of the fact that the property being sold may be illegal, or because the applicant for the permit did not indicate what products it sold.This new policy was effective immediately. BOE policy regarding the issuance of a seller’s permit was amended to provide that a seller†™s permit shall be issued to anyone requesting a permit to sell tangible personal property, the sale of which would be subject to sales tax if sold at retail. Previously, the Board would not issue a seller’s permit when sales consisted only of medical marijuana. Anyone selling tangible personal property in California, the sale of which would be subject to sales tax if sold at retail, is required to hold a seller’s permit and report and pay the taxes due on their sales.The sale of tangible personal property in California is generally subject to tax unless the sale qualifies for a specific exemption or exclusion. Sales and Use Tax Regulation 1591, Medicines and Medical Devices, explains when the sale or use of property meeting the definition of â€Å"medicine† qualifies for exemption from tax. Generally, for an item’s sale or use to qualify for an exemption from tax under Regulation 1591, the item must qualify as a medicine and the sale or use of the item must meet specific conditions.Regulation 1591 defines a medicine, in part, as any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment, or prevention of disease and which is commonly recognized as a substance or preparation intended for that use. A medicine is also defined as any drug or any biologic, when such are approved by the U. S. Food and Drug Administration to diagnose, cure, mitigate, treat, or prevent any disease, illness, or medical condition regardless of ultimate use.In order to be exempt, a medicine must qualify under the definition, and it must be either (1) prescribed for treatment by medical professional authorized to prescribe medicines and dispensed by a pharmacy; (2) furnished by a physician to his or her own patients; or (3) furnished by a licensed health facility on a physician’s order. (There are some other specific circumstances not addressed here such as being fu rnished by a state-run medical facility or a pharmaceutical company without charge for medical research. ) 16 | P a g eGenerally, all of these requirements must be fulfilled in accordance with state and federal law. Regulation 1591 exempts the sale or use of medicines furnished by qualifying health care facilities. (See response to Question 5, above, regarding the requirements to qualify as an exempt medicine. ) State law defines a qualifying â€Å"health facility† as either a facility licensed under state law to provide 24-hour inpatient care or a state-licensed clinic. Not making a profit does not relieve a seller of his or her sales tax liability.However, whether or not you make a profit, like other retailers making taxable sales, you can ask your customers to reimburse you for the sales taxes due on your sales, if you fulfill the requirements explained in Regulation 1700, Reimbursement for Sales Tax. As discussed in the response to Question 10, the Board may enter into a payment plan with a seller when the seller has difficulty meeting its tax liabilities. The Board has an Offers in Compromise Program that provides a payment alternative for individuals and businesses who have closed out their accounts.The Board will issue a seller’s permit to an applicant who does not indicate the products being sold. The applicant, however, will be asked to sign a waiver acknowledging that his or her application is incomplete, which may result in the applicant not being provided with complete information regarding obligations as a holder of a seller’s permit, or notified of future requirements by the Board related to the products sold. Applicants who do not wish to indicate the type of products they are selling should leave the line, â€Å"What items do you sell? blank and discuss the issue with a Board representative regarding the incomplete application. As with any other seller who has operated without a permit, or who has failed to timely file and pay the taxes due, back taxes are owed on any taxable sales made, but not reported and paid. Generally, penalty and interest will also be due. When you apply for a seller’s permit and your application is processed, Board staff will provide sales and use tax returns from prior periods for you to report your sales of medical marijuana and any other products you may have sold, but did not report.You will need to use these returns to self-report all your sales beginning with the month you first started selling taxable 17 | P a g e products. Once you have filed all your back returns, you will receive a current return for each reporting period in which you make sales. You will continue to receive a return until such time as you stop making sales and have notified the Board of the discontinuance of your business. The Board, however, may grant relief from penalty charges if it is determined that a person’s failure to file a timely return or payment was due to reasonable cause and circumstances beyond the person’s control.If a seller wishes to file for such relief, he or she must file a statement with the Board stating, under penalty of perjury, the facts that apply. Sellers may use form BOE-735, Request for Relief from Penalty, available on the Board’s website. A seller who cannot pay a liability in full may be eligible for an installment payment agreement. Sellers in need of this type of plan should contact their local Board office, as eligibility is determined on a case-by-case basis.All California sellers of tangible personal property the sale of which would be subject to tax if sold at retail are required to hold seller’s permits. A seller’s permit should be obtained prior to making sales of tangible personal property. If you are currently making sales of medical marijuana and you do not hold a seller’s permit, you should obtain one as soon as possible. Sellers have a continuing obligation to hold a seller’s permit until such time they stop making sales of products that are subject to tax when sold at retail.Sales tax provides revenues to the state’s General Fund as well as to cities, counties, and other local jurisdictions where the sale was made. The tax from the sales of medical marijuana is treated the same as the tax received from the sale of all tangible personal property. Registering for a seller’s permit brings sellers into compliance with the Sales and Use Tax Law, but holding a seller’s permit does not allow sales that are otherwise unlawful by state or federal law. The Compassionate Use Act of 1996 decriminalized the cultivation and use of marijuana by certain persons on the recommendation of a physician.California’s Medical Marijuana Program Act also exempted qualifying patients and primary caregivers from criminal sanctions for certain other activities involving marijuana. Apart from any provisions of state law, the sale of marijuana remains ill egal under federal law. 18 | P a g e 19 | P a g e Chapter 9: The Medical Marijuana Program The medical marijuana program (MMP) has been established to provide a voluntary marijuana identification card issuance and registry program for individuals who qualify as patients as well as their caregivers.A web-based registry has been created which allows law enforcement and the public to verify patient or caregiver cards which give authorization to possess, grow, transport, and for the use of medical marijuana in California. In 2003, Senate Bill (SB) 420 (Chapter 875, Statutes of 2003) was passed as an extension and clarification of Proposition 215, the Compassionate Use Act of 1996. The Medical Marijuana Program, within CDPH, is administered through a patient's county of residence.Upon obtaining a recommendation from their physician for use of medicinal marijuana, patients and their primary caregivers may apply for and be issued; a Medical Marijuana Identification Card. Senate Bill 420 al so required that the MMP be fully supported through the card application processing fees. Both the state and the counties have authority to cover the costs for the program through these application fees. 20 | P a g e Chapter 10: County Guidelines County guidelines have been established to outline legal amounts of medical marijuana possession in regards two personal use, patient care givers, and an growing operations.At the writing of this document, 9-7-2011, they are as follows: Alameda: 6 mature plants or 12 immature plants ; 8 ounces of bud Alpine: 6 mature plants or 12 immature plants ; 8 ounces of bud Amador: 6 mature plants or 12 immature plants ; 8 ounces of bud Butte: 6 mature plants or 12 immature plants ; one pound of processed (formerly 6 plants at any stage) Calaveras: 6 mature plants or 12 immature plants ; 8 ounces of bud Colusa: No firm policy; case-by-case review, though â€Å"tentative guidelines† of 6 mature plants or 12 immature plants ; 8 ounces of bud or 1 . lb. processed (formerly 2 plants outdoors or 4 plants indoors) Contra Costa: 6 mature plants or 12 immature plants ; 8 ounces of bud Del Norte: Current status remains cloudy, so fol-low the state minimum guidelines for maximum safety: 6 mature plants or 12 immature plants ; 8 ounces of bud. El Dorado: Outdoors: 20 plants from March 1 through July 31; 10 plants through October (or end of season); 2 lbs. f bud from September 1 through February 28; and 1 lb from March 1 to August 31. Indoors: 10 vegetative plants, 1 mother plant, 10 flowering plants and1 lb of bud per patient (formerly 6 plants and/or 2 pounds processed). NB: Caregivers can take care of household plus three outside patients. Also see El Dorado County DA Policy. Fresno: 6 mature plants or 12 immature plants ; 8 ounces of bud Glenn: 6 mature plants or 12 immature plants ; 8 ounces of bud 21 | P a g eHumboldt: 3 lbs of bud or equivalent; 100 square feet of garden canopy, no limit on plant numbers or lamp wattage. Caregi ver amounts calculated per patient served. [Original DA policy: Up to 99 plants with up to 100 square feet of canopy and up to lb. of bud. Indoor gardens limited to 1500 watts total illumination. ] Imperial: 6 mature plants or 12 immature plants ; 8 ounces of bud Inyo: 6 mature plants or 12 immature plants ; 8 ounces of bud Kern: 6 mature plants or 12 immature plants ; 8 ounces of bud.King: 6 mature plants or 12 immature plants ; 8 ounces of bud Lake: 6 mature plants or 12 immature plants ; 8 ounces of bud Lassen: 6 mature plants or 12 immature plants ; 8 ounces of bud Los Angeles: 6 mature plants or 12 immature plants ; 8 ounces of bud Madera: 6 mature plants or 12 immature plants ; 8 ounces of bud Marin: 6 mature plants or 12 immature plants ; 8 ounces of bud, county ID cards now honored by all law enforcement. Mariposa: 6 mature plants or 12 immature plants ; 8 ounces of bud Mendocino: 99 plants (from 25) with permit—[This County’s guidelines are covered in Hemp Pub lication’s Monograph No. : Grows] Merced: 6 mature plants or 12 immature plants ; 8 ounces of bud Modoc: 6 mature plants or 12 immature plants ; 8 ounces of bud Mono: 6 mature plants or 12 immature plants ; 8 ounces of bud Monterey: 6 mature plants or 12 immature plants ; 8 ounces of bud Napa: 6 mature plants or 12 immature plants ; 8 ounces of bud 22 | P a g e Nevada: 6 mature plants or 12 immature plants any size; or, in the alternative, 75 square feet of total canopy area ; up to 2 lb. of bud. Collectives must keep copies of all patients’ recommenda-tions available for inspection.Orange: 6 mature plants or 12 immature plants ; 8 ounces of bud Placer: 6 mature plants or 12 immature plants ; 8 ounces of bud Plumas: 6 mature plants or 12 immature plants ; 8 ounces of bud Riverside: 6 mature plants or 12 immature plants ; 8 ounces of bud Sacramento: 6 mature plants or 12 immature plants ; 8 ounces of bud San Benito: 6 mature plants or 12 immature plants ; 8 ounces of bu d San Bernardino: 6 mature plants or 12 immature plants ; 8 ounces of bud San Diego: 6 mature plants or 12 immature plants ; 8 ounces of bud San Francisco: Patient and caregiver ID cards is-sued by county Health Department; no patient guidelines.Case by case policy is based on police claims of indicia of illegal sales or diversion to non-medical market. San Joaquin: 6 mature plants or 12 immature plants ; 8 ounces of bud SanLuis Obispo: 6 mature plants or 12 immature plants ; 8 ounces of bud San Mateo: 6 mature plants or 12 immature plants ; 8 ounces of bud Santa Barbara: 6 mature plants or 12 immature plants ; 8 ounces of bud Santa Clara: 6 mature plants or 12 immature plants ; 8 ounces of bud Santa Cruz: 3 pounds of bud or equivalent, plus 100 square feet of garden canopy, no limit on plant numbers or lamp wattage Shasta: 6 mature plants or 12 immature plants ; 8 ounces of bud or 1. 33 lb. processed 23 | P a g eSierra: 6 mature plants or 12 immature plants ; 8 ounces of bud or any quantity approved by phy-sician Siskiyou: 6 mature plants or 12 immature plants ; 8 ounces of bud Solano: 6 mature plants or 12 immature plants ; 8 ounces of bud Sonoma: County policy: Up to 30 plants with up to 100 square feet of garden canopy and up to 3 lb. of bud. Stanislaus: 6 mature plants or 12 immature plants and 8 ounces of bud Sutter: 6 mature plants or 12 immature plants ; 8 ounces of bud Tehama: 12 seedlings or 6 flowering or mature plants, and 8 ounces dried marijuana.Indoor Cultivation: 12 seedlings or 6 flowering or mature plants, and 8 ounces dried marijuana. Trinity: Board of Supervisors voted to step back-ward and revert to the state minimum threshold of 6 mature plants or 12 immature plant ; 8 ounces of bud. Tulare: 6 mature plants or 12 immature plants ; 8 ounces of bud Tuolumne: 6 mature plants or 12 immature plants ; 8 ounces of bud. Ventura: 6 mature plants or 12 immature plants ; 8 ounces of bud or 1 lb. ry bud or conversion. Yolo: 6 mature plants or 12 imma ture plants ; 8 ounces of bud Yuba: Informal policy: 6 mature plants or 12 im-mature plants ; 8 ounces of bud or 1. 5 lb. of processed marijuana. 24 | P a g e Disclaimer This document has been written for and is meant for educational purposes only. It is not in any way legally binding, or in other words, it cannot be used in a court of law as justification for any actions taken by its readers.It should be noted that while California does not prosecute Medical Marijuana Patients within the guidelines of SB 420, marijuana is still illegal under federal law and individuals can still be prosecuted as such. The writers of this document have provided this document for educational purposes only. We in no way advocate or take responsibility for any actions taken by its readers. 25 | P a g e

Innovation and Entrepreneurship - Business Plan Assignment

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A Romantic Dinner Essay Example | Topics and Well Written Essays - 750 words

A Romantic Dinner - Essay Example Outside, the landscape had changed. Where once there were the brash, insistent reds and greens of late summer now were the glamorous, rich shades of ochre, crimson and orange. Lisa stepped into her thin shoes and let the door slam shut behind her, leaving behind the cheer and light of her kitchen for the valley that was topped by the glorious shades of a sun setting behind the mountains. Her worn, cotton dress, whose colors had mellowed from being hung to dry in the sun, swished around her ankles. Twigs snapped like matchsticks beneath her feet as she walked towards the silvery sheen of the lake. From within the basket could be heard the faint clink of glass and silverware. Lisa paused and smiled even brighter at the figure sitting on a blanket by the lake. She hadn't seen Colin for over three months while she had been away for the summer, visiting her grandparents in Louisiana before school started up again. The days had seemed like years, the weeks had seemed like aeons and the months like an eternity. Lisa had met Colin when the two of them were fifteen. They both hated the same people in high school, which had led to them loving each other, although Lisa had suspected that Colin was gay at first. She liked the way he always had the edgiest jokes, the most intellectual references, the most sincere kindness and the most tasteful pants. He was head and shoulders above the other boys in her class. She knew that her heartstrings were permanently soldered to this boy when, at their upper-crust private school, Colin confessed that as soon as he was eighteen, he wanted to run away from home, join Greenpeace, and "fight eco-terrorism," as he put it. And when Colin was asked by the school basketball coach, "Why don't you want to join the team" and answered with, "Because I don't like you," she nearly proposed. Colin was on his back, staring at the sky. When he heard Lisa's footsteps, he tilted his head backwards, looked at her and smiled brightly, then casually walked over to her and squeezed her as tight as she could. The two of them laid down on the grass, embracing. Colin went back to his sky-gazing, while tapping his black, Converse-clad foot gently to some tune heard only within his head. Between his fingers he twirled a single blade of grass, then rolled it between the square palms of his hands. "I missed you, baby," Lisa said, inhaling the scent of his blond hair. He smelled like Suave shampoo and soy milk."I missed you, too," he said. "What do you have for me to eat Did you make tasty treats for me""I thought you would never ask," Lisa smiled. She sat up and pulled the heavy wicker basket towards them and started sifting through its contents. Lisa was fairly young-just shy of twenty-two-but in spite of that, she had marvelous skills within the kitchen, probably as a result of having an almost unhealthy interest in the domestic arts. She adored quilting, baking, sewing and knitting; her room was always spotless and beautiful, with finely crocheted ecru lace curtains on the windows and a homemade apron hanging on her door. Her dream was to one day own a giant farmhouse with lots of children (six, to be exact) and raise sheep, goats and bees. She envisioned herself making cheese and candles and liked the idea of teaching her children to spin and die skeins of yarn into all t he colors of the rainbow-burgundy, cobalt, sage and blonde,

Partnership between FedEx and Environmental Defence Fund Dissertation

Partnership between FedEx and Environmental Defence Fund - Dissertation Example Presently the governmental sector and the NGOs have realised the potential significance of incorporating businesses within the worldwide process of growth and development. Businesses with the capability and necessary funding to affect stakeholders positively may not be well adapted to the requirements necessary to maintain corporate social responsibility. It has been observed that often business firms aiming at being socially more responsible, lack adequate training and knowledge to implement various developmental plan and program. On the other hand, the various NGOs that are adept at carrying out developmental programs globally, lack funds (owing to persistently decreasing governmental support from the public funds in context of the recent economic crisis) and other resources to implement effectively their projects on a long-term basis (Bobenrieth and Stibbe, 2010). Owing to these requirements as observed in both the entities that have led to increasing instances of co-operation bet ween the profit and non-profit making sectors, that often move â€Å"beyond basic philanthropy to ‘win-win’ partnerships†¦ [and generate] strong business, social and environmental benefits† (ibid, 1). Further accelerated by worldwide economic crisis, the trend amongst the NGOs and the corporates to work in collaboration and achieve sustainable social development, is fast turning into a reality in many nations. Many of the international institutions that work in social and economic development and fund raising activities have acknowledged the significance of cooperation between the two entities for sustainable and effective global development. Agenda 21, a 1992 UN action plan for sustainable development, first created the framework for institutionalising governing processes in the form of collaborative arrangements (Glasbergen, 2007, 1-25). Later in December 2005, the UN General Assembly passed a resolution known as â€Å"Toward Global Partnerships,† w here collaboration between corporates and NGOs are shown as significant for a nation’s development and poverty removal. This resolution noted that â€Å"in regard to developing partnerships through the provision of greater opportunities to the private sector, non-governmental organizations and civil society in general so as to enable them to contribute to†¦the pursuit of development and the eradication of poverty†(UN General Assembly Resolution 62/211, Toward Global Partnerships, 2005). Therefore, it is quite evident that there is an increasing importance being attached to such collaborative activities for the general social welfare, worldwide. Although there are many principle/ethical based functional differences between a NGO and a corporate house, in the modern context, it is important for such partnerships to exist, for three primary reasons. The first reason is the fast-paced globalisation and modern innovative technology have resulted in a better-connected w orld; however due to the same globalisation now local problems have also acquired a global face and become

Comparing Between American Education and Saudi Education Research Paper

Comparing Between American Education and Saudi Education - Research Paper Example A comparison between the weakest and the strongest education systems can assist in understanding the benefits of a good educational system and provide guidance for the improvement of the weak educational system. It is for this reason that I want to compare the American Education and Saudi Education to understand the shortcomings of the educational system of Saudi Arabia. America is a nation with a very strong educational system whereas Saudi Arabia lacks in this field and it is for this reason that a comparison of the education in the two countries can highlight the factors that need to be improved in the education of Saudi Arabia. The governments in the United States and Saudi Arabia both work extensively for the promotion of the education in their respective countries. Both the countries are known to spend extensively for improving the educational sector. The countries offer free education to students till the school level. Saudi Arabia also offers financial assistance to students for further education. The two countries have similar sets of schools which include the schools of the public sector, the government sector and the option of home schooling is also available. But there are still many differences in the education imparted in two countries. This can be understood by comparing the literacy rates of the two countries. 99 percent of the males as well as the females in the United States are educated. On the other hand, only 84.7 percent males and 70.8 percent females are literate in Saudi Arabia. The two countries have many similarities in their educational systems but striking differences have also been noted. The education system in Saudi Arabia has a strong role of religion and Islamic studies are a compulsory part of the curriculum in the educational institutions in the country. This is not true in the United States as religious studies are not compulsory in most of the educational institutions. The grading system in the two countries is also differen t. In the United States, students are given grades from A to F where A is the highest grade and F is the lowest one. On the other hand, the grading system in Saudi Arabia is from 5 to 1 with 5 being the highest mark and 1 being the lowest. The two countries also have different policies with regard to attendance in the educational institutions. In the United States, there is a compulsion for the students to be present in their schools. This is implemented in primary and secondary educational institutions. This rule is not implied in Saudi Arabia and attendance in primary and secondary schools is not checked with much strictness (Stevenson). Medical education is extremely important for all the countries of the world. There is a sharp difference between the medical educational system and practicing in the United States and Saudi Arabia. The United States has very good medical institutions that excel in teaching medicine and are marked to be the best across the globe. Furthermore, there are many educational programs for the medical health professionals and there are strictly regulated examinations in the country which ensure the fact that qualified professionals enter the field (Dezee et al 521). On the other hand, medical education in Saudi Arabia lacks these qualities. Many new medical instituti

Financial Management Essay Example | Topics and Well Written Essays - 1250 words

Financial Management - Essay Example The company is deemed to be the third largest retailer with respect to the amount of revenue that it produces (Potter, 2011; Deloitte, 2010). To examine and analyze the financial performance of the company, the ratio analysis technique needs to be used. Ratio analysis is a technique which uses a set of different financial measures known as financial ratios, in order to analyze the financial performance of a company. These financial ratios of the company would be compared with its prior year ratios to understand whether there is any improvement in the performance of the company (Shim et al, 2000). The financial ratios for Tesco plc are as follows: Ratios 2010 2009 Liquidity Ratios Current ratio 0.73 : 1 0.75 : 1 Quick ratio 0.44 : 1 0.61 : 1 Gearing Ratios Gross debt-equity ratio 74.9% 109.6% Net interest cover 3.1 times 7 times Profitability Ratios Gross Profit Margin 8.22% 7.76% Net Profit Margin 4.1% 3.99% Investment ratios Earnings per share 29.33 cents 27.50 cents (Annual Report, Tesco plc, 2011) . Liquidity Ratios evaluate a company’s ability to pay off their debts when they fall due. Basically it gives a basic picture of a running position of a company. Current ratio illustrates a company’s ability to pay off its short term obligation/ current liabilities (amount due within 12 months time) with the current assets that it holds whilst the quick and the cash ratio illustrates a company’s ability to pay off their debts with the most liquid assets and cash respectively. Current ratios on the other hand analyze a company’s ability to pay off their respective debts/liabilities through their most liquid (easily converted to cash) assets. The ratios in the above table indicate that the liquidity position of the company has worsened in 2010 as compared to 2009; both the current and the quick ratios have deteriorated over the year. The current ratio has fallen from being 0.75:1 in 2010 to 0.73:1 in 2009. The quick ratio has also fallen f rom being 0.61:1 in 2010 to 0.44:1 in 2009. This should be a concern for the company as the liquidity ratios are a measure of company’s subtleness and long term sustainability. With the help of the profitability ratio, a company can ascertain the increase/decrease in the level of costs, revenues and profits over any given period of time. These ratios help in ascertaining the company’s performance with respect to the profits that the company/organization has generated. Gross Profit Margin/Net Profit Margin ratios help in ascertaining a company’s gross profit/net profit with respect to the revenue that the company has generated; this ratio helps in understanding the changing trends of the operational costs within any particular period of time. Both the Gross Profit and the Net Profit margin ratios have improved for the company over the one year concerned. This is a good sign for the company with respect to its growth, the company’s gross profit margin has i mproved from being 7.76% in 2009 to 8.22% in 2010, this is both because of the fact the company has increased its sales revenue and it has controlled its cost as well. The net profit margin has also increased from being 3.99% in 2009 to 4.1% in 2010, although the change is not a huge one but still for a large company like Tesco plc, this change is worth noting as it has increased the company’

English - reading and writing assignment Essay Example | Topics and Well Written Essays - 1000 words

English - reading and writing assignment - Essay Example Reading it helps us grow intellectually and emotionally. If we are learning a language, reading helps us learn new words and discover different ways of using them. Reading literature also expands our horizons, as it brings us to different places, cultures, and time, and introduces us to diverse characters that we would have not known within our own lifetime. Literature enables us to respond to human struggles and dreams. At the same time, reading literature also helps us learn more about ourselves, our culture, and the society we live in. Roberts underscores that our interpretations of literature reveal our innermost desires, values, and goals too. It also makes us more aware of our society and the ills and good in it. Indeed, literature â€Å"makes us human† (2). Writing about literature entails an active engagement with the text. It requires following the work and identifying meaningful details and implications. We use our own knowledge and experience to check the authenticity and meaning of the plot and dialogues. Writing down notes is one way of responding to the text while reading it. These notes can be the spring of our thesis and supporting arguments. Writing about literature basically means explaining what the text means through a focused argument. The analysis shows the reader’s thought process, as well as how he/she plans to describe and defend his/her ideas and arguments. Writing requires having an argumentative position and supporting details from the text and sometimes, even other sources, to effectively show that all our points lead to our thesis. In a sample essay about â€Å"The Necklace,† Roberts explains how de Maupassant uses setting to describe and explain Mathilde’s character. The thesis stresses that Mathilde grows as a person and this growth can be seen through descriptions of her apartment, dreams about elegant rooms in a mansion, and her attic flat. Three topic sentences are presented, which support the

Finding a New Advertising Agency Essay Example for Free

Finding a New Advertising Agency Essay It started with a pair of certified letters to MINI USA’s Woodcliff Lake headquarters in northern New Jersey in the summer of 2005. One of the letters was addressed to Jim McDowell, vice president and managing director of MINI USA, the U.S. division of BMW’s MINI automobile brand. The other letter was to Trudy Hardy, marketing manager for MINI USA and a direct report to McDowell. Both letters were from Scheid, Roberts, and Reicher (SRR),1 MINI’s advertising agency since 2001, and both arrived at their respective destinations at almost exactly the same time. From her desk, which was not in the immediate proximity of McDowell’s office, Hardy sat back in her chair and opened the letter without the knowledge that McDowell had just received a similar letter. Her thoughts and feelings as she broke the seal of the envelope and read the one-page letter partly confirmed previous suspicions but, nevertheless, included a sense of great disappointment and some hurt feelings. A rare event in the client-advertising agency relationship, SRR’s letter informed Hardy that they would resign the MINI account in order to pursue a larger account with a competing German automobile manufacturer. For Hardy, it was during the next few moments that the gravity of the event began to sink in. SRR had been the ad agency for MINI ever since the months leading up to the U.S. launch of the new MINI Cooper, which was the first new car launched by the MINI brand since its acquisition by BMW several years earlier. In a time when the duration of a client-advertising agency relationship typically lasted for just about two years, the collaboration with SRR had been in her mind a productive one for almost five years. And in the same way that she believed the relationship had been extremely valuable  to MINI, it was also hard for Hardy to believe that the same did not hold true for SRR as well. In 2001, the MINI account stood as one of the first major SRR client wins when it was a start-up agency with fewer than 50 employees. SRR had now grown to more than 300 employees, and the launch of the MINI Cooper was an unquestioned success. In some ways, MINI and SRR had grown up together. 1 Although this case is based on actual events, Scheid, Roberts, and Reicher (SRR) is a fictional name for MINI USA’s advertising agency from 2001 to 2005. For simplicity, hereinafter, MINI is used as opposed to MINI USA. 2 The BMW Group maintained a general rule that each BMW brand have its own advertising agency. For example, SRR could not work for BMW and MINI at the same time. ________________________________________________________________________________________________________________ Professor David Godes prepared this case with the assistance of Research Associate Peter Wickersham. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright  © 2007, 2008 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-5457685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School. Hardy began to think of the task before her. In one sense, if she were the marketing manager for almost any other product, the selection of a new advertising agency might not have been such a critical task. But the MINI brand, in almost every respect, was unique—from the design of the car itself to the passionate owners of the car who, for example, often named their MINI Cooper as they would a pet or family member. MINI’s advertising since the launch of the Cooper had been highly unconventional, and although she had no immediate ideas of how to proceed in finding a new agency, Hardy knew that  the selection process would need to be just as unique. The BMW Group and MINI Mini History We went round the works, and I drove him at a hell of a speed—I’m sure he was terrified—but then he was so impressed by its road holding. We stopped outside his office. He got out of the car and he said, â€Å"Go ahead and make it.† — Alec Issigonis, head of design for the Morris Mini Minor (a.k.a, the Mini), conversation with Leonard Lord, chairman of British Motor Corporation (BMC), 19583 The twentieth century witnessed the creation of scores of automobiles, but it can be argued that only a handful of these cars transcended the others to become cultural icons. For some car enthusiasts, the short list of such cars might have included the likes of the Ford Model T or Volkswagen Beetle. For those living in the United Kingdom and Europe in the 40 years between 1959 and the end of the century, the Mini Minor and its descendants, including the original Mini Cooper, would almost certainly have been counted among them. The genesis for what was to become the Mini was attributed to Leonard Lord in response to the nationalization of the Suez Canal by Egypt in September 1956. Since it was thought this action might disrupt or restrict the shipment of oil from the Middle East, Lord commissioned Alec Issigonis to design a small car intended for those seeking frugal transport. The design requirements were few and simple: the ability to seat four people, use of a BMC engine, and an overall size smaller than that of current BMC cars. Issigonis formed a team of eight designers and engineers. In one of their first meetings together, Issigonis placed four wooden chairs on the workshop floor in two rows of two and asked four of his team members to sit in them. They then shuffled the chairs around on the floor until each could sit comfortably in a minimum of space. The rough dimensions were captured in chalk on the workshop floor; the passenger space required was to be at least 8 feet 9 inches long, Purchased for use on the MSc International Marketing, at Kings College London, Department of Management. Taught by Douglas West, from 12-Jan-2015 to 27-Mar-2015. Order ref F240566. Usage permitted only within these parameters otherwise contact [emailprotected] â€Å"Well, I guess they’re off to greener pastures,† he said in a matter-of-fact tone. After talking some more about the resignation, they soon turned their attention to finding a new partner. â€Å"Listen, I have total confidence in you to find our next agency,† McDowell assured Hardy. â€Å"It won’t be easy, but you know our brand better than anyone. The only catch is that we should probably have this nailed down before the end of the year, which means early December. Let’s talk more once you have an idea of where you’d like to take the search.† With those words, McDowell left Hardy’s office. In addition to its small size (and in some cases because of it), the design of the Mini contained several other notable innovations. It was one of the first front-wheel-drive cars, and its engine was mounted transversely so as not to contribute more than two feet to the overall length of the car. The wide spacing of the wheels allowed for more efficient passenger space, and thus more than 80% of the overall dimensions of the Mini were devoted to luggage and occupants. The design of the Mini also had some other unique consequences. First, the Mini’s simple layout made it easy for owners to modify the interior and exterior of the car; as a result, customization of the car became common. Second, its wide wheel spacing and low center of gravity made the Mini suitable for development of a racing variant of the car. An acquaintance of Issigonis, John Cooper, created the Mini Cooper in 1961 to be driven in rally races. The Mini Cooper was quite successful,  winning the prestigious Monte Carlo rally in 1964, 1965, and 1967. In all, around 150,000 Mini Coopers were produced. The mass-produced version of the Mini was a success in terms of unit sales. It also attracted a cult-like following. Each of the four Beatles owned a Mini as did Peter Sellers and many other famous British celebrities of the day. In 1995, the Mini was voted â€Å"Car of the Century† by readers of Autocar, a U.K. car magazine. BMW Acquires Mini Although the Mini was universally considered a success, the same could not be said for the succession of parent companies that owned the brand. In 1968, British Leyland was formed when BMC merged with the Leyland truck company. In 1975, British Leyland went bankrupt, and the company—with classic brands such as Jaguar, Rover, MG, Triumph, and Mini—was bought out by the British government. In 1988, the collection of surviving brands, now referred to as the Rover Group, was sold to British Aerospace, another nationalized company. Along the way, there were notable investments made in the Rover Group by other car manufacturers, including Honda of Japan, which owned approximately 25% of the company at one time. Yet, the greatest investment and perhaps the biggest surprise occurred in 1994 when BMW, the German luxury automaker with 1993 sales of $18 billion, acquired Rover and its brands, including Mini, for $1.2 billion. In the eyes of senior management at the BMW Auto Group (AG), the vision for the purchase of the Rover Group was to take the company into a new international era. Bernd Pischetsrieder, who was named chief executive officer of BMW AG in 1994, explained it this way: â€Å"The key to success is continuously changing your focus over the long term . . . in the ‘80s, we focused on enhancing the engineering process. The  key emphasis for the ‘90s is globalization of the entire business, including financing, product engineering, styling, designing, manufacturing, and sourcing.†4 Similarly, some industry analysts believed that BMW could not afford to compete solely at the luxury end of a maturing world car market. The acquisition of the Mini brand and the decision to develop the new MINI was seen as a solid strategy to offer less expensive cars without jeopardizing the integrity of the BMW brand.5 According to an analyst with Commerzbank, â€Å"By slightly modifying an existing brand, effectively ‘inserting’ a new vehicle into it, it avoids having to pay all the upfront costs associated 4 J. P. Donlon, â€Å"Honk if you are global (interview with BMW CEO Bernd Pischetsrieder),† Chief Executive, October 1, 1994. 5 BMW differentiated the new version of the Mini from the original by capitalizing all four letters when referring to the new model (i.e., MINI). 3 Purchased for use on the MSc International Marketing, at Kings College London, Department of Management. Taught by Douglas West, from 12-Jan-2015 to 27-Mar-2015. Order ref F240566. Usage permitted only within these parameters otherwise contact [emailprotected]  feet 2 inches wide, and 4 feet 4 inches high. Ultimately, once the engine and luggage space were added, the Mini was designed to be just 10 feet in length (Exhibit 1). MINI USA: Finding a New Advertising Agency (A)  with developing a new brand. The costs of brand building cannot be underestimated, as anyone at Daewoo would be quick to point out.†6 Not included in the deal to divest the Rover division, notably, was the MINI  brand as well as the manufacturing facility near Oxford, England. â€Å"We knew we had a winner there. Much to the chagrin of the British, we held onto it,† McDowell would say later. Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F240566 Designing a New MINI The design and development of the new MINI in the mid-1990s was to some at BMW the embodiment of the larger struggle to integrate the cultures of Rover and BMW. Between 1994 and 1999, there existed two separate MINI design teams—one British and one German. The British-based Rover designers and engineers for much of that time envisioned a revolutionary design of the new MINI. One such MINI concept was unlike, the previous Mini in almost every way but was seen as a contemporary interpretation of Issigonis’ vision of building a small car with maximum passenger space (Exhibit 3). BMW’s designers took a more evolutionary approach in terms of design combined with BMW’s reputation for delivering high-performance, driver-oriented cars. On one night in 1998 at his home in Munich, Frank Stephenson, a BMW designer originally from the U.S., cast himself into the role of Issigonis, who was known for doodling designs of cars on the back of napkins. On a kitchen towel, Stephenson sketched a series of updated versions of the original Mini to reflect modern trends in design and new technology; see Exhibit 3 for a sample sketch.7 In the end, it was Stephenson’s design that would form the basis of the new MINI. The official launch of the MINI was held at the Paris auto show in 2000. During the show, senior BMW AG executives and Stephenson unveiled the new MINI to a rousing ovation. In explaining its design, Stephenson said, â€Å"The MINI Cooper is not a retro design car, but an evolution of the original. It has the genes and many of the characteristics of its predecessor, but is larger, more powerful, more muscular and more exciting than its predecessor.†8 Two production models were to be launched in the U.K. (its historical home) in July 2001: a base model called the MINI One and a more upscale MINI Cooper. A sportier MINI Cooper S was to be launched soon thereafter in the U.K., and both the MINI Cooper and MINI  Cooper S were scheduled for launch in the U.S. as well as other parts of the world in early 2002. Even though the first MINI Coopers were not scheduled to arrive until early 2002, work was well underway in 2000 to establish an organization to support  the launch of the MINI in the United States. MINI USA was established as a division of BMW of North America LLC and would share the same headquarters in Woodcliff Lake, New Jersey, as its parent organization. Jack Pitney was named general manager of MINI USA, a unique distinction for someone with a marketing background as opposed to automotive engineering, manufacturing, finance, or sales. Kerri Martin was appointed MINI’s marketing communications manager. Trudy Hardy was also recruited in 2001 as brand communications manager of MINI, reporting to Martin. The MINI USA headquarters organization was designed to be small (fewer than 25 employees), nimble, and highly creative. From the start, the credo of the organization appeared to be, â€Å"If another car company might take the same approach, MINI ought not.† Martin, for instance, was commonly called by the title â€Å"keeper of brand soul† instead of marketing manager. Work proceeded quickly. By the end of 2000, www.miniusa.com was live and already receiving hits. As with the MINI USA headquarters organization, the existing BMW infrastructure was utilized to create a network of U.S. MINI dealerships. Nevertheless, in a similar fashion, great lengths were taken to establish MINI as its own brand. Approximately 70 dealerships in 31 cities were renovated to add an exclusive MINI showroom under a separate marquee. In total, across all U.S. dealerships, first-year MINI sales objectives were expected to be 20,000 units, an amount Pitney viewed as aggressive but within reach. Base retail sticker prices for the MINI Cooper and MINI Cooper S models were set at about $18,000 and $21,000, respectively, including dealer shipment fees. Additionally, leveraging the history of customizations to the original Mini, each model carried an extensive list of optional equipment and exterior color schemes. For instance, the car roof alone could be painted at the factory with one of more than 10 color schemes, including a black-and-white checkerboard pattern as well as an image of either the Union Jack or American flag. Early expectations were that the MINI Cooper S would capture approximately 80% of sales due to its larger engine and better acceleration. Depending on the amount of optional equipment selected, the total price of a MINI Cooper S could exceed $25,000. Given its design and price range, plans were to position the MINI Cooper as a premium small car—something that MINI saw as a new market niche. This was especially true because the MINI Cooper was smaller and more expensive than some of the better-established compact cars made by Honda, Toyota, and Nissan. Initial MINI marketing materials and media reports from auto shows portrayed the MINI Cooper as a â€Å"fashionable accessory to an affluent, urban-hipster lifestyle.†9 However, early market research also indicated that the target market for the MINI was not limited to a specific demographic group or socioeconomic class but rather was more of a lifestyle choice or mind-set. For example, in surveys conducted before launch, potential MINI buyers in the U.S. described themselves as â€Å"young at heart† or â€Å"free spirited,† a finding that was consistent among both young as well as older age groups. Moreover, the potential MINI buyer appeared to be less concerned by the opinions of others and was independent minded. MINI and BMW AG drew a number of conclusions from this initial research. First, it was decided that further research should closely examine the psychographic factors associated with the purchase of a MINI, since the most fervent of potential MINI buyers seemed to have a common mind-set about the car, which was something that Pitney and others hoped to explore in greater detail. Second, the research confirmed to them that, unlike the original Mini, the new MINI should not be marketed as a car for the masses but instead to a particular segment of car buyers. Third, although it created 9 Suzanne Vranica, â€Å"Cool Mini Cooper Prepares for Relaunch,† The Wall Street Journal, February 14, 2001. Pitney and Martin thus recognized the importance of selecting an advertising agency with experience in nontraditional advertising such as promotional events, online advertising, and direct marketing. None of the large advertising agencies known for television advertising were invited to pitch the account, a decision that many industry observers viewed as bold and against the grain. DaimlerChrysler’s Chrysler Group unit, for example, had recently consolidated its $1.5 billion ad account at Omnicom Group. MINI also decided to base part of the compensation of the ad agency on the collective opinions of its dealers, something that was unique in advertising. Following a fourmonth review, SRR was selected as MINI’s agency of record. A separate firm, Circle.com, was selected to handle their online technology strategy and customer relationship management (CRM) duties. Although MINI would not disclose it publicly, the MINI account was valued at about $25 million per year in term s of total marketing spend, a relatively modest size for an automotive client. Let’s Motor: The U.S. Launch of the MINI The U.S. Launch Campaign (2001–2002) By July 2001, in the eyes of Pitney, Martin, Hardy, and the rest of the MINI team, both the marketing strategy and the creative focus of MINI’s U.S. launch (scheduled for March 2002) were taking shape. Moreover, they felt that the desire to do things differently at MINI had been taken to a whole new level. Most significantly, the marketing team had decided not to use any television or radio advertising as part of MINI’s launch, an industry first for what was essentially an entirely new automobile brand in the U.S. market (it had been almost 40 years since the original Mini was sold in the U.S.). Instead, a phased approach using print and nontraditional marketing techniques was developed. During August and September 2001, MINI’s focus was  to build brand awareness primarily through print advertising in magazines. The tagline for the ads was â€Å"Let’s Motor,† a theme developed by SRR and that would be carried throughout the launch campaign in 2002. The use of the word â€Å"Let’s† at the beginning of each ad was intended to create a feeling of inclusiveness, and the tone of the ads was intended to be friendly and funny. For example, one ad read: â€Å"Let’s not use the size of our vehicle to compensate for other shortcomings. Let’s Motor.† Another began, â€Å"Let’s put away the middle finger.† In addition to initial print advertising in magazines such as Autoweek, SRR developed The Book of Motoring, a 5-inch by 5-inch glossy booklet designed to convey exactly what it meant to be a motorer. â€Å"How is motoring different from driving?† it posed to the reader. â€Å"Physically, they’re the same process . . . the difference is in the mind of the operator . . . when you drive, you go from A to B . . . when you motor you go from A to Z . . . it’s all about living . . . nobody can tell you when you’re motoring . . . you just know.† The book also suggested that motorers pay the toll for the car behind them or feed parking meters if they see a meter maid coming. â€Å"Motorers look out for one another,† the book said. The Book of Motoring could be obtained through BMW dealers or the MINI USA website. In October 2001, in addition to continued print advertising, the SRR and the MINI marketing team designed a series of promotional events and publicity stunts to create additional buzz for the brand. Purchased for use on the MSc International Marketing, at Kings College London, Department of Management. Taught by Douglas West, from 12-Jan-2015 to 27-Mar-2015. Order ref F240566. Usage permitted only within these parameters otherwise contact [emailprotected]  challenges for the manufacturing team in Oxford, England, it was clear that the target market would likely seek to make their MINI unique by adding optional features and color schemes. Finally, it also became apparent that limiting their advertising to traditional media such as television and radio would not be cost effective, since the MINI itself was not a mass-market car  and since its potential buyers seemed less interested in being part of the mainstream. In one example, for a Formula 1 car race in Indianapolis, MINIs were secured to the top of three fullsize sport-utility vehicles and were driven to the city from other parts of the U.S. carrying signs that read, â€Å"What are you doing for fun this weekend?† The same MINI-toting SUVs then toured some 24 U.S. cities (Exhibit 4). When curious onlookers asked about the car, representatives were instructed to give them a card that said â€Å"Coming to America† and directed them to the MINI USA website. Sporting events were also used as venues to promote the car. For instance, a MINI was placed in the stands of an Oakland A’s baseball game and in the Superdome for a Monday Night Football game (Exhibit 5). As part of this promotion, during the game, the announcer did a series of â€Å"callouts† that drew the attention of the fans in attendance to the MINI. As one example, he announced: â€Å"To the gentleman in Section 101, you’ve left your lights on.â €  When the in-stadium camera focused on the MINI in Section 101, its lights flashed and then shut off. This particular promotion also played a role in the firm’s attempts to anthropomorphize the MINI. When the official launch of the MINI Cooper began in March 2002, MINI and SRR continued their grass-roots marketing efforts and print advertising in combination with outdoor advertising using, most notably, billboards, which they felt were underutilized by other car brands. In all 45 markets where the new MINI was to be sold, teaser billboards were posted on the day that showrooms were opened. Instead of displaying the car or its logo, the billboards only included the company’s website, miniusa.com, and a single line of text. One billboard read, â€Å"XXL XL L M S Mini.† Another read, â€Å"The SUV backlash officially starts now.† Then, in April, a new series of  billboards were rolled out that included a photo of a MINI, the MINI logo, and the â€Å"Let’s Motor† tagline. Slogans included, â€Å"Let’s Sip Not Guzzle,† referring to its above-average fuel economy. The outdoor advertising was taken to the extreme in cities like New York, where a skyscraper was wrapped to represent the car’s two-tone paint job and a 29-foot-by-125-foot billboard was erected in Times Square. Though typically considered a traditional medium, print advertising was used by MINI as nontraditionally as possible. In late 2001, for instance, executives from 35 magazines were invited to MINI’s headquarters to brainstorm unique ways to market the new MINI in print. One noteworthy outcome of this session was a proposal to use the margins around news stories to hold advertisements. At launch, the â€Å"cornering ads,† as they were called, were run in six magazines, including Rolling Stone and Motor Trend. The ads said, â€Å"Nothing corners like a MINI† and contained a photo of the Mini Cooper S cornering the one-inch margin of the magazine page. Other aspects of the launch campaign included the following (Exhibit 6): †¢ More than 6 million magazine inserts of an abridged version of The Book of Motoring †¢ A series of MINI-inspired cartoons featured in The New Yorker magazine †¢ Other magazine inserts including an unscented MINI-shaped air freshener and a pullout car game. Another insert allowed readers to customize the car using peel-off stickers; accessories such as wheel covers, blowers, and racks could be placed on a photo of a MINI in the ad. In total, more than 30 million magazine inserts were published in magazines ranging from Car and Driver to Vanity Fair. The MINI organization was very  happy with the creative output of SRR. â€Å"Conceptually, just about every one of their ideas was spot on,† Hardy said. â€Å"Besides the fact that they really ‘got’ the brand, they also made sure that the ideas they showed us were fleshed out and developed. This extra effort on their part really made it easier for us to react to the ideas and to give them meaningful feedback so we could work together to make them come to life.† MINI and SRR planned to explore other advertising media as 2002 wore on, just not television. Rather than use TV advertising, for example, MINI opted to sign a deal with National Cinema Network, a movie theater network, to show 30- and 45-second advertisements on roughly 2,000 screens in five cities. 7 Purchased for use on the MSc International Marketing, at Kings College London, Department of Management. Taught by Douglas West, from 12-Jan-2015 to 27-Mar-2015. Order ref F240566. Usage permitted only within these parameters otherwise contact [emailprotected] By the close of 2002, there were several reasons for MINI and SRR to celebrate. Most obvious were the year-end MINI sales figures, which indicated that 24,590 units had been sold in a little over nine months. At that pace, first-year sales were projected to total over 30,000 units. In addition to the strong sales figures, a consumer survey indicated that brand awareness for the MINI among the carbuying public was 25%. A survey indicated that 75% of MINI buyers had read or heard about the MINI through  public relations and Internet exposure before the official launch advertising actually began in March 2002. The launch campaign also earned both MINI and SRR a significant number of awards, including Adweek magazine’s 2002 Guerilla Marketer of the Year and 2003 Media Plan of the Year honors, the 2002 Kelly Awards Grand Prize for Outstanding Magazine Advertising, and two 2002 Cannes Media Lion prizes. SRR also won the Best of Show Award and an award for innovation in marketing at the annual One Show awards, a prestigious event sponsored by the One Club for Art and Copy in New York. At the same awards ceremony, MINI USA received the Advertiser of the Year Award. Pitney was named one of two Automotive News Marketers of the Year (the other was awarded to Jim McDowell, vice president of marketing for BMW of North America). In January 2003, the MINI was selected as the North American Car of the Year by the same publication. The MINI Cooper and MINI Cooper S were selected as finalists for the Motor Trend Car of the Year as well. The Creative Work Continues (2003–2005) By all accounts, the relationship between MINI and SRR was felt by both sides in 2003 to have been a highly productive collaboration to that point. â€Å"Each day we came to the office thinking that we had one of the best jobs in the world. In a sense, SRR was just part of the family. We’d interact and debate ideas on a weekly, sometimes daily, basis,† Hardy described. â€Å"It was a close working relationship.† Over the next two years, MINI’s strategy of using primarily nontraditional advertising in combination with print and outdoor advertising continued, as did SRR’s ability to develop unique creative material in support of this strategy. One magazine campaign featured punch-out, assembleable versions of the MINI Cooper built on a 1:56 scale. About 4.4 million inserts were created, featuring two cars with different combinations of accessories, and came complete with assembly instructions; both cars became collectors’ items. In another campaign, consumers could pull out MINI cartoon-character decals from magazines. The stickers came eight per sheet and were designed to drive buyers into dealerships for a ninth sticker. Approaches like this one were well received by dealers, including Wayne Youngblood, general  manager of Motor City Mini near Detroit. â€Å"I’m thrilled with it; MINI marketing is quirky, fun, and it delivers customers that match the vehicle perfectly,† he said. â€Å"In my 30 years in the business, there has been no other product that commands as much excitement or attention as MINI.†10 Sales of the MINI Cooper continued to climb (Exhibit 7). In 2004, a MINI Cooper convertible was added to the model lineup. Changes would soon be underway, however. In March 2005, Martin announced that she was leaving MINI to become director of market development for Volkswagen of America, a company known for spending about $500 million annually in North American advertising. Around the same time, Pitney and McDowell made the unique decision to switch jobs as general manager of MINI USA and vice president of marketing for BMW of North America. But the ultimate surprise was SRR’s resignation of the MINI account in order to become the agency of record Purchased for use on the MSc International Marketing, at Kings College London, Department of Management. Taught by Douglas West, from 12-Jan-2015 to 27-Mar-2015. Order ref F240566. Usage permitted only within these parameters otherwise contact [emailprotected] for Volkswagen. By then, Hardy had assumed Martin’s duties as head of marketing, and one of her first challenges was starting over and finding a new advertising agency, which would not be easy given the unique relationship that MINI enjoyed with SRR. Advertising Agencies With each passing year of technological advancements, it was apparent to MINI and others that the foundations of any advertising firm—creativity and the ability to deliver creative content in a variety of media—were becoming less and less the exclusive domain of bigger advertising firms with extensive production staffs. Consequently, it was possible for a one- or two-person shop to perform the same creative services as a large, multinational advertising conglomerate with billions in revenues such as Omnicom, WPP, Interpublic Group (IPG), and Publicis. Advertising firms in 2005 could be categorized into either of these two groups, but a third group also existed. The â€Å"independents,† as they were called, were privately owned firms with anywhere from about 10 to 300 employees. As was the case with SRR, oftentimes these firms were started by young, entrepreneurial advertising professionals looking for creative freedom or autonomy following stints at one or more o f the publicly held multinational firms. Seen by some to be a competitive response to the growth of the independents, consolidation was a significant theme in the advertising industry during much of the 1990s and early twenty-first century. Over this period, the major holding companies appeared intent on expanding market share in order to gain economies of scale, diversifying their revenue streams, and serving clients as a one-stop shop while growing into large, multinational players. In 1993, for example, the top three agency holding companies captured a 36% share of the market. By 2003, this figure had increased to 50%.11 The increase in market share was largely achieved through acquisitions of independents and smaller holding companies, with the bulk of these acquisitions occurring from 1996–2001. One holding company, IPG, acquired 240 companies during that period. Another significant industry theme was the shift in agency compensation over the past decade from commissions to fee-based compensation. Traditionally, advertising organizations had been paid at a set percentage of an advertising budget for the creative work on an account; this percentage was  typically in the 12%–15% range but could be as high as 20%. A major criticism of this compensation system was that it did not align the agency’s pay with the success of a particular campaign or with the amount of work required to create the campaign. The fee-based system (or FTE model) charged production fees and employee hours along with a standard profit margin (e.g., 20%) for the advertising firm. In 2005, it was estimated that 80% of all advertising clients had moved away from commission-based compensation structures to enter fixed fees or a combination of fee and incentive compensation.