Factors that influenced the change in management accounting

Factors that influenced the change in management accounting This chapter will review the relevant literature and the understanding of the traditional role of the management accountant. The chapter will begin with an understanding of the concept of management accounting. This provides a background for discussion of the traditional role of management accountant. Finally, a review of all the factors that may influence on the role and promoted the change of the role are explored. 2.1 Accounting Accounting is a process of identifying, measuring and communicating economic information to permit informed judgements and decisions by the users of the information (Wallace, 1997, p.220) The history of accountancy has progressed in combination with civilisation and commerce. The literature provides evidence that Paciolo in 1494 founded the concept of accounting by publication of Summa de Arithmetica. He presented accounting in methodical form that became a science later on. The definition suggests that accounting is about providing economic information to others and it relates to the financial or economic activities of the organisation. Accounting information is identified and measured by the way of a set of accounts or double-entry bookkeeping. 2.1.1 Management accounting Management accounting is that part of accounting which provides decision making information to managers for use in planning and controlling operations (Seal at all, 2006). The term of management accounting is defined by numbers of authors (Shank, 1989, Back-Hock, 1992, Nanni at all, 1992) in that management accounting provides information to develop performance measures and includes all planning and monitoring in an organisation. Simon et al., (1954), cited by Jarvenpaa (2007) described the role as the traditional role of management accounting. The role was an operational scorekeeping where accounting information was used to satisfy the organisations reporting obligation. 2.1.2 The rise and fall of management accounting The arrival of Johnson and Kaplans publication Relevant Lost: The rise and fall of management accounting (1987) plays an important role in the direction that teaching and research may adopt in the near future. JK states that the decline of management accounting began in the 1920s when most of the management accounting techniques known today were practically developed. According to JK the fall of management accounting was mainly due to the ever-increasing cost of implementing a detailed and efficient internal product cost system. JK argued that management accounting techniques had not change since 1920s. Up to 1980s many countries enjoyed operating in protective environments. Oversees companies were limited to operating in the domestic market with barriers to communication, geographical distance and sometimes protected markets (Drury, 2003). Since 1980s many organisations have changed and adapted new techniques. Organisational change had an impact on management accounting change. Cost allocation has been the most debated topic in man acc. Up to the 1960s standard costing was promoted by academic and professional organisations and was viewed as the key management accounting tool in cost control (Bailey, 2006). According to Allott (2000) the post war area was characterised by rational expectations about human behaviour and beliefs in linear progress, upward mobility and equal opportunity. The 1970s brought new changes to management accounting and standard costing relevance that began to focus more on efficiency . In the large organisations the accountability of standard costing was questioned. Robert S. Kaplan in his Accounting Review argued that cost accounting was developed between 1850 and 1915. He argued that up to 50s big corporations used cost oriented techniques (Knortz, 1990) but then they started to focus more on consumers and their role in a business. Due to changes in manufacturing and business environment, volume based costing is no longer appropriate because direct labour and material expenses no longer dominate product costs. In response to this issue activity based costing system was introduced that brought huge success to Japanese management accounting (Ezzamel, 1994). Each organisation must also consider the cultural and social setting before any alterations to the ABC are successful (Lowry, 1993, Ezzamel, 1994, Otley, 2008). In summary, the change of management accounting outlined by Johnson and Kaplan (1987) seem to be across management accounting literature (Otley, 1985, Noreen, 1987, Drucker, 1990, Ezzamel, 1994, Fry et al., 1998, Otley,2008). Jonson and Kaplan did raise important question about management accounting and helped organisations to re-evaluate the importance of having an accurate management accounting system. 2.2 Traditional role The concept of accountant was introduced in Italy around the eleventh century. At the same time the first society of accountants was establish here in Italy. In 1669 every accountant must be a member of the college before being allowed to practice (Woolf, 1986, p.162). 2.2.1 The typical stereotype The traditional role of accountant is often called the bean counter stereotype. Holland (1973) develops a theory on this subject. He classifies people into six categories. The accountant relates to the conventional type giving an overall good impression, decent, dealing with computations in the organisational and business field. He linked the work that accountant does to the type of person the accountant is. The close link was found by Bougen (1994, p.321) using various personal characteristics and different tasks. The stereotypical accountant was defined based on the tasks carried out. 2.2.2 The Bookkeeper/Traditional Management Accountant The old inaccurate image of stereotype was seen as quiet, boring and without original thoughts. The study on this negative image by Beardslee and ODowd (1962) was seen the accountant as a Victorian bookkeeper spending most of the time at the desk and on a ledger without contact with the outside world. Simon (1954) in his studies classified the role as scorekeeping, problem solving role and attention directing. According to Friedman and Lyne (1997) the scorekeeping focuses on compliance reporting and attention directing focuses on control issues. The problems solving role associated with decision-making and providing managers with relevant information. Feeney and Pierce (2007) stated that their role did not relate to the business, had lack of creativity and very limited level of decisions. Accountants were involved in working with budgeting, variance analysis and traditional accounting. Over the past 30 years management accountant had a clear but narrow view that management accounting information could help to improve profitability. They believed that managers from other departments did not understand the importance of accounting information and all available date they held in the accounting systems. At that time, management accountants were proved of their role and be able to educate their non-financial managers about the benefits of using this management accountants were traditionally seen as an independent person who had narrow knowledge how management accounting information could improve profitability and efficiency of the organisation. Nanni et al (1992) point out that traditional management accountants have tended to focus on a product-oriented rather than a process-oriented performances. There is some evidence that accountants have had little interests in any organisational changes even they had skills to bring some changes. For example, it was accountants who insisted on the implementation an activity-based costing system (Foster and Gupta, 1989) or product life-cycle costing system. 2.2.3 Accounting lag Johnson and Kaplan (1987) criticised management accountant for their inability to innovations and this was viewed as an accounting lag .Kaplan (1984) in his study about accounting lag proposed that accountants should develop a research strategy to meet new demands for planning and control information. He suggested that there was little innovation since 1920. Accounting lag need to be minimized to keep accounting information relevant to all changes occurring over time. 2. 3 Pressures for Changes The literature identifies some relevant factors that impact on the role of management accountants including: 2.3.1 Advances in Manufacturing and Globalisation Companies have invested heavily in new manufacturing technology such as computer aided manufacturing (CAM), Computer Aided Design (CAD), and flexible manufacturing systems (FMS) (Buggerman and Siagmulder) The new manufacturing technologies have impacted on traditional managing accounting systems and !Consequently it is argued that management accounting systems have to change when manufacturing systems change With respect to product costing and overhead costs, tracking thousands of individual products can be overwhelming. Traditionally, Labour hours were used as a basis for an overhead allocation. It is perhaps less suited as products made through automation would be charged an insufficient overhead rate. The competitive pressure on firms and the shift in many industry sectors from cost led pricing to price-led costing (Nixon, 1998) and globalization are just some of the many factors that are influencing the escalating expenditure on RD and New Product Development that most companies must now incur. 2.3.2Competition Pre 1980s many countries enjoyed operating in protective environments. Oversees companies were limited to operating in the domestic market with barriers to communication, geographical distance and sometimes protected markets (Drury 2003) However manufacturing companies were open to sever pressure from competition from oversees competitors that offered high quality products at low prices. To be successful in competition against these companies they had to advance and adopt to change and find a competitive weapon to compete against world class manufacturing companies. As a result of highly competitive market, consumers expectations, changes in tastes and attitudes, companies must now have the flexibility to cope with consumer demands for greater variety and improvements, shorter life cycles etc. 2.3.3 Advances in manufacturing technology Evolution of management accounting information technologies and ERP systems in particular have been a fundamental catalyst in I.T. change and traditional management accounting techniques have had to keep in line and pace with these rapid advancements. ERP can have significant implications for management accountants. As noted by Granlund and Malmi (2003) the link to management accounting appears important since one set of benefits from integrated systems is assumed to flow from easy and fast access to operational data, management accounting being essential for conveying such data in a managerial relevant and usable form. Also when major scale changes regarding information systems occur, logic of accounting becomes exposed to evaluation and possible changes. As ERP is a totally integrated information system it merges together all data from manufacturing department to sales division and the integrated data flows immediately through the system(). As a consequence of this integration accountants have had to learn to work with this new system, and to look at the business as a process rather than in divisions which has led to more team work and greater cross functional communication and co-operation. On the other hand there is evidence suggesting the accounting professionals are developing a broader role for themselves. Accountants are becoming less in charge of data gathering and more data interpretation and consulting kind of work. ERP has eliminated several number crunching assignments as its already done by the system thus leaving more time for accountants to expand their capabilities. Their role can be enhanced by becoming advisors and internal consultants to other managers. With the implementation and running of ERP systems accountants have gained a more active role in the maintenance and management of the IT area and eroding into activities and responsibilities typical of the I.T. area. Caglio (2003) states that As a consequence of the intro of ERP systems, accountants have experienced a phenomenon of Hybridization deriving from their set of practices and legitimized competencies 2.3.4 Changes in organisation structure Changes in manufacturing technology, globalisation and fierce competition have lead to changes in the structure of the organisation. Companies have focus on downsizing, delay ring management activities and outsourcing support services. Technology advances in flexible manufacturing robotics automated production and computerised engineering and planning are affecting the markets raising the quality of products and services while lowering and eliminating stock levels (Baily 2006) Conclusion Chapter 3 3.1 Change is a contextual process Burns and Vaivio (2001) described change as a complex and contextual process. They introduced three perspectives on change. The first perspective explores the idea that what sometimes appears to be change, may not actually be the change (DCU thesis). Change could be an illusion or kind of organizational mirage and often can be seen as positive phenomenon. But sometimes management accounting change could lead to substantial problems such as unforeseen conflict (Malmi, 1997; Kasurinen, 1999; Granlund, 2001). The second perspective provides a debate about the logic of change. Any changes including management accounting change is not planned, but is viewed as a part of reality and neutral activity. The final perspective point out that management accounting can be viewed as phenomenon. Therefore change may be presented as a centrally driven effort where the management plays an important role. For example in the case of mergers and acquisitions occurring, new rules will be introduced and/or modified. This can happen deliberately or unconsciously. Deliberate changes could occur due to resistance within the acquired organisation (Burns and Scapens 2000) Changes may be unconscious when rules are simply misunderstood or are inappropriate to the circumstances. 3.2 Management accounting change Management accounting change has become an increasingly popular focus for research in management accounting in 1990s due to implementation of activity-based costing( Innes and Mitchell, 1990), activity-based cost management ( Friedman and Lyne, 1995), life cycle costing (Shields and Young, 1991) and target costing (e.g. Dutton and Ferguson, 1996). Recent research has debated whether management accounting has changed, has not changed or should be changed. (Burns and Scapens 2000) Whether management accounting has changed or not, that the environment in which management accountants operate certainly has changed with advances in information technology, change in organisation structure and stiffer competitive markets. The understanding of management accounting change constitutes much more than the selection of what may be perceived as being optimal accounting systems and techniques, followed by a technical process of implementation. (Burns et al book) Selecting and using the correct management accounting techniques and the technical aspects of performance are important, but there are also behavioural and cultural issues to be understood in relation to change implementation and change management. The main focus on management accounting change is on understanding the processes involved in the implementation of management accounting change and the complexities of, and difficulties involved in, changing management accounting systems, techniques and roles. Burns (1999) suggest that many organisations have routines in place and new changes introduced will lead to the change of the nature of the organisation. In the early 1980s a project, called the Production Cost Control Project was set up to improve the flow of acc info in Omega Plc. The project had failed because the operating managers saw the business in terms of producing-based meanings and routines. The divisional accountants viewed the business as financial term and regarded PCCP as a means of introducing accounting-based routines. Sulaiman and Mitchell (2005) carried out study on management accounting change in Malaysian manufacturing companies. After gathering all information a four types of change had occurred. The two types occurred due to new technique introduction and two concerned existing management accounting modification. The research found that management accountant classified the level of management accounting change into five generalised components. 3.3 Institutional theory 3.3.1 Institution Institutional theory is a theoretical framework that became more relevant in research of management accounting change. In accepting this theory there is no universally agreed definition of an institution. Scott (1995) describes instutions are social structures that have attained a high degree of resilience Burns and Scapens (19990 defined institution as a way of action of commonness which is surrounded in the habits of a group of people. 3.3.2 Institutional framework as a rules and routines concept Development of the framework began by looking at the way in which order is achieved through rules and routines. The framework perceive management accounting to be a rules and routines constituted by established habits. (Kim Soin, 2002). Hodgson (1993) defined habits as self-actualizing dispositions or tendencies to engage in previously adopted form of action. Habit is a personal action where routines involve group of people as components of institution. Routines play an important role in an organisation in which management accounting was viewed as a rule concept where management accountant performed routine tasks. Rules may be became implemented through the establishment of routines and vice versa. Therefore the reproduction of roles and routine will persist over time and the routines of management accountants may be changed. The process of change may develop new routines which over time could be institutionalised. In the organisation routines can be adapted very quickly over the time. Human behaviour in the organisation is based on repeating actions to comply with rules and routines as they provide an organisational memory and represent the basis for the development of the behaviour (Kim Soin, 2002). Guerreiro, R at al (2006) used habit, routines and institutions to illustrate how accounting practices can turn from habit to institutions through routines. They concluded that all institutions are structured on the basis of take-for-granted habits and routines, succeed during a certain period and are realised in a form of normative rules. 3.3.3 Taken for granted According to Scapens (2006) organisations react more slowly to changes than individuals as they removed form every day activities in some way. He observed that over time, management accounting can contain a structure that shows the way organisations thinking and acting which is widely taken for granted. Management accountants were viewed as routine features in the organisation and they simply taken for granted as the way things are. Some researches of institutionalism criticised the framework as it overplays its emphasis on constancy at the expense of focusing on institutional change. Quattrone and Hopper (2001) explained how management accounting can be influenced by an organisation or by individuals. Individualism argues that an organisation changes when individual actions modify the organisation. They introduced the concept of drift for constructions of accounting change. The authors replaced the word change with world drift. Quattrone and Hopper (2001) choose drift as to represent accounting change as incomplete attempts at organising and emphasise that human elements that situate accounting change is not a harbour to the change. They argued that accounting change was also promoted by technical and inscribed elements. In a recent study of change in management accounting Busco at all (2007) organised the notion of change within key dimensions. The key dimensions were evaluated in terms of the ratio and forms of change as well as evaluation over space and time of change. They carried out a case study to investigate those key dimensions in the Middle-East Gas and Oil Company (MEGOC) as a large corporation operating in the oil and gas industry. They found that change can only happen due to incompleteness that exists within an organisation. Busco at all (2007) concluded that management accounting change is a theoretical space which, possibly more than many others in management and organizational studies, intersects and interacts with the broader knowledge area of the social sciences, sociology and philosophy of knowledge and science and technology studies Conclusion Chapter 4 4.1 Management accountant as hybrid accountant The term hybrid accountant emerged in the literature from around 1995 as its role was focused on product stream. Burns and Baldvinsdottir (2005) studied a concept of new role of management accountant as hybrid accountant by examining a multinational pharmaceutical company in the manufacturing division. Their study found that the number of hybrid accountants increase with development of team relationship building while routine accounting role disappearing. Two types of hybrid accountant were found from their study: finance manager and finance analyst were the finance manager was involved in strategic issues and the finance analyst was involved with day to day activities. According to Miller et al (2007) hybrid is defined as new phenomena produced out of two or more elements normally found separately. The discussion in the literature around hybrid accountant has developed in business partner direction. 4.2 Business partner role It has been noted in the literature that management accountant have become more and more involved in business processes (Sathe, 1982, Keating and Joblonsky) and have demonstrated a strong business understanding (Feeney, 2007, Burns at all, 1999). Hopper (1980) found that principal task of accountants was to act in a service role rather than a bookkeeper. He found that majority described their lore as the service role and only few called themselves as the bookkeeper and preferred the management accounting tasks to be centralised. Grnalund and Lukka(1998) presented the transformation from bean counter to business-orientated management accountant position. The transformation occurred with the increasing decentralization of the management accounting function. They concluded that those two roles are very different and a person can not act in both roles. Some evidence emerging in the literature that transformation of management accountants to business partner started at the top by the busi ness and profit centre managers became more depended on accountants. Managers used their help as the guidance to run their business (Siegel, 2003) and they expect from accountants a better business understanding and more flexibility (Pierce and ODea, 2003). Burns and Baldvinsdottir (2005) concluded that it is necessary for management accountants to have a broad range of business skills with their basic technical skills. 4.3 Professional skills of management accountant ( subheading needed) As processes have changed and accounting has adapted over time to meet the needs of ever changing business, management accountants have been required to change their skills. (Fleming 1999) They are projected to be forward thinking business forecaster s who add value to the entity and not just highlighting whether the targets have been met (Burns and Yazdifar) Traditionally management accountants spent time on preparing standardized reports. Today the shift has moved towards analyzing, interpreting and providing information for decision making purposes. (Roberta et al 2009) These skills include traditional as well as soft skills that these management accountants posses in order to contribute positively to the tasks that are acquired to perform as part of their role (Jones and Abraham 2007) A recent study by Freeny and Pierce 2007 looked at management accountant skills and asked both managers and management accountants to rank skills in order of perceived importance. Ethics and honesty were rated highly by both parties. Managers value the unbiased and objective perspective offered by management accountants- the financial numbers cannot afford to be skewed in favor of a certain standpoint Accuracy is also crucial. A simple error in calculation could amount to millions of Euros, which could lead to a wrong decision (Siegal 2000 )As part of Management accountants role converging towards hybrid accountants as business partners, honesty is good but they have to take into account a bit of cop on (Freeny and Pierce 2007) and process the commercial knowledge required on their behalf to get the job done. For many businesses, critical thinking, problem solving and analytical skills are essential tools. It is an important skill of management accountants to think critically and to be good at problem solving. They need to be able to step back and look at something outside of the box (Siegal 2000) people can be a wizard at spreadsheets, can manipulate data effectively but can they figure out whether the information in front of them is reasonably or realistic (Freeny and Pierce 2007) Accounts have to be able to think logically in a business setting. They cant just learn off and memorize what to do in different situations. Creativity is also important, to be able to step aside and show some innovation and ideas to problems. In the study by Freeny and Pierce management accountants actual ratings in relation to interpersonal/ leadership and communication skill set fell below managers expectations. These are classed as fundamental skills and a necessary to have the ability to take on a complex subject and turn it into easily understandable language and be able to explain it to managers and other non accountants. you guys can be geniuses with your spreadsheets but there isnt that many of you that can sit down at the meeting and share information. A key responsibility in compiling reports for use is that the input is based from other personnel throughout the organization. Good personnel skills are needed to approach these managers and request information. Problems could arise where managers believe management accountants can adjust their targets and cause problems. This requires substantial interpersonal skills to close the communication gap. It is evident that management accountants must prepare and equip themselves for their new role in line with changing business demands. Professional accounting bodies must update and modernize their training and education curriculum to guarantee that todays management accountants can cope with new information technology systems, strategy and business partner role. (Burns and Yazdifar) As many of the new accounting roles do not necessarily need a management accountant there is a threat posed to the profession. For example if an engineering firm is seeking for a new business manager they might seek engineers who encompass business knowledge with an accountant qualification rather than a fully qualified management accountant. To combat this threat accounting educators should develop curriculums that are less dominated by traditional management practices and focus on management accounting in a modern light and equip students with the skills necessary and useful to provide a value-added service. Carcello et al (1991) conducted a survey of comparing student expectations to that of accounting professionals anticipations. Students included in the sample were within six months of graduating and professional accountants were in the work place for 1.5 years to 3.5 years. Four questions of the survey pacifically related to skills essential as a practicing accountant. (A) Technical Knowledge, (B) C computer Skills, (C) Verbal and Written Communication skills, (D) Interpersonal skills. Respondents had to rank the skills on a five point scale. The results of the survey showed that professionals and students had similar views as to the importance of technical knowledge and computer skills. Students perceived communication skills and interpersonal skills as more important than professionals. Carcello et al (1991) concluded that this is a positive result as both communication and interpersonal skills are essential attributes of the accounting profession. Oswick et al (1994) conducted a survey on the perception of public accounting skills held by uk students with accounting and non accounting career aspirations. The perception of a traditional accountant being dull and lacking in social skills is detained with non accountant students. In Oswicks study these non accounting students perceived empathy and social styles as less important skills necessary than accounting students. Interpersonal skills were also rated lowly as perceived important by students not interested in accountancy. Students interested in accountancy did place a higher weighting on interpersonal skills and view the accountancy profession as a more interactive and social profession. From the surveys conducted on skills required by accountants it is evident that there has been as increased weighting on the soft skills acquired by management accountant. Such evidence had had implications for accounting educators. It is necessary to enable students and for faculty to remain abreast of the changes taking place in the profession and to identify key Accounting Skills needed for success. (Russell et al 1999) Chapter 5 Methodology 5.1 Introduction The purpose of this chapter is to elaborate on the research methodology that was used in this dissertation. The beginning of this chapter refers to the objective of the research and is followed by the process of selecting the research method. This chapter also considers the limitations of the chosen research method. 5.2 Objective As outlined in the introduction chapter the main purpose of this dissertation is to investigate the change of management accountants over time. The researcher wishes to identify the traditional role of management accountants and compare to the modern role of management accountant. The authors also seek to explore the factors that promoted the change. A number of researches have already been carried out on business partner or hybrid accountant role and this has resulted a significant availability of information regarding this area. However, there is a lack of examination in some areas that the research will explore. 5.3 Chosen methodology In order to achieve the research objectives it is necessary to choose an appropriate research approach. Tsetsekos (1993) outlined that the research methodology is very important as it specifies the information requirements for the successful completion of a research project. This dissertation is based on a secondary research that includes a critical review of prior literature. Secondary data consists of both quantitative and qualitative data. 5.3.1 Secondary Data Literature review A comprehensive review of the literature was conducted in chapter one, two and three. Literature review helps the reade

Edward Scissorhands Essay Essay

Burton’s eye opening film, Edward Scissorhands, showed intense drama through the use of Edward and Kim who expressed great love for each other. Yet it became a tragedy as the couple who were meant to be together were too different from each other. This essay, will illustrate how much Edward loved Kim so much that he was willing to do anything for her, and how much Kim loved Edward so much that she sacrificed her love to let him go. The way Burton used these two characters to show the realistic view of what love is about and how love can be complicated, will also be explained. Burton’s ideas about love through the use of these extraordinary characters were an extreme representation of society which made this film a great and memorable drama with the elements of great love and great tragedy. The first idea that Burton expressed was the great love Edward had for Kim, but with the influence of others their love became too difficult. Edward fell so deeply in love with Kim, that he was willing to do ANYTHING for her. Edward helped Jim and Kim break into Jim’s home even though he knew it was wrong. When Kim asked Edward why he willingly helped them, Edward replied, â€Å"Because you asked me to. † Edward showed how much he loved Kim by the way he considered the consequences if he were to physically be with her. â€Å"Hold me,† Kim asked, but Edward knew that if he did, there would be a possibility that he would hurt her with his scissorhands, so he answered, â€Å"I can’t. † Edward’s love for Kim was also shown through his actions of wanting to protect Kim. Edward fought to protect Kim from Jim who constantly hurt her physically as he booted her off him with his foot, yanked her away from Edward and had put her life in danger by his reckless actions of wanting to kill Edward. Edward’s only way of stopping Jim from hurting Kim and himself was to kill him. Jim made it impossible for Edward and Kim to be together because of his want to control Kim. Edward Scissorhands explores the idea that some people are unable to be together because of their differences, but can also be caused by the influence of other people round them. The thought of people who love each other and yet cannot be together makes people unsatisfied because of the belief that couples should live happily ever after, and yet Burton has created the opposite. Another idea presented in this film is the amount of love Kim had for Edward which was so tremendous that she let him go. In the mid-shot of Kim telling Edward to â€Å"run†, her facial expressions showed just how much she cared for him. Kim knew that the people of Suburbia would not leave Edward alone and it would cause too much conflict if he continued to stay in Suburbia. The only way Edward would be safe would be to return back to his home where he belonged. Her love for him was also shown in the scene when she told the people of Suburbia that Edward was dead. Her pure white dress gave the impression of an innocent girl which made it easier for the crowd to believe her. Burton demonstrated how difficult it could be to be in love with someone and the sacrifices that will be made for the better of everyone, even if it means to give up love for love. The story of ‘The Beauty and the Beast’ was represented in this film; however it was remade with a twist, as the Beauty and the Beast did not live happily ever after. This interpretation and modification of the ‘Beauty and the Beast’ story did not live up to Hollywood’s expectations of a happily ever after ending, seeing that Edward and Kim did not end up together. The movie is not a ‘Romeo and Juliet’ romance either as they did not die together showing how much they love each other, but let each other go for the better of the other person. Edward and Kim saw that they could not be together so decided on the best plan to keep both of them alive but also happy, knowing that they tried at love. The most compelling aspect of the film was the idea of a monster falling in love with a human where the audience is set up for an exciting love story. However, Burton changed the typical Hollywood ending into a reality that would make the audience feel irritated. Burton built the audience up for an unlikely love story, yet made the audience root for the couple, knowing that people should be together, could not be together. His plan to make the audience root for the couple to be together is what made the audience engage in the love story and yearn for Kim and Edward to be a pair. Though, in reality the audience knew that Edward and Kim would not work out due to their differences. As Edward said â€Å"Goodbye†, Kim kissed him and said â€Å"I love you† then fled the scene. Burton showed the reality of love and how some relationships are not meant to be due to society’s thoughts and rules and because some relationships just do not work out. Hollywood would let Kim and Edward be a couple as they always try to find a way to make the characters live happily ever after. However, with Burton he showed the reality of life and that they could not live happily ever after. He showed an extreme example of what the society would do if there was a person like Edward in the world today. He showed that the likelihood of Edward and Kim being together is slim and life goes on. Love does not stop people from living their own lives as long as they are happy. Edward and Kim continued to live their lives separately but are still content with their own lives. They have learnt what it is like to fall for someone they cannot have and took the responsible way of letting their love go, rather than trying to make it possible or dying together like Romeo and Juliet. They resorted to an outcome that will let both of them live satisfied lives without hurting others but themselves. To summarise the many ideas that Burton has produced through Edward Scissorhands, his extreme representation of society and its rules let the audience reflect on the meaning of life, how people treat others and what great love could do to people. His message about love reflecting the reality of life and how relationships do not always work out reminds the audience that love is not easy. The sacrifices and the pain people go through while they are in love with a person are not like the Hollywood movies, which is what made this film a great and memorable drama.

Environment: Pollution and Human Impact Essay

Every living thing has an impact on its environment. Therefore a human impact on the environment is inevitable. By simply existing, all species – including ourselves – will imprint their mark on the world around them. What differentiates us from other species is our ability to greatly overburden our environment with very few limits. The information regarding our human impact is vast and impossible to cover in one article but I will attempt to cover a basic overview. For 200 years we’ve been conquering Nature. Now we’re beating it to death. ~ Tom McMillan Water Pollution Perhaps the most obvious examples of a negative human impact on the environment is water pollution. It’s obvious we need water to survive but few people realize how much we need and just how much is available. Consider these facts from the United Nations Environment Programme: * Of all the water on Earth, only 2.5% of it is freshwater. * Of that 2.5%, less than 1% is available to us. * Humans each require up to 13 gallons (50 litres) a day of fresh water for drinking, cooking and cleaning. This does NOT take into account the countless gallons of water needed to grow food or care for animals. * 70% of all freshwater usage goes to irrigation. According to Organic Farming Research Foundation, only 2% of farms are organic. This means almost 69% of our freshwater supply is being contaminated by chemical pesticides, herbicides, and chemical fertilizers, while also compounded with fossil fuels and emissions from heavy farming machinery. These chemical compounds contribute to acid rain. Since very little can live in an acidic environment, acid rain has harmful effects on plants, animals, and aquatic life, as well as humans and even buildings, statues or other objects. Acid rain also contaminates our limited freshwater supply, and thus the cycle of water pollution continues. According to the U.S. Environmental Protection Agency, 45% of assessed stream miles, 47% of assessed lake acres, and 32% of assessed bay and estuarine square miles were not clean enough to support uses such as swimming or fishing. The following reasons and possible sources for this include: Photo Source: Alan Liefting| * Sediments, pathogens and habitat alterations from agricultural activity and hydrologic modifications (such as dams) * Excessive nutrients, metals and organic enrichment from agricultural activity and atmospheric deposition (the movement of pollutants from one environment to another, such as from water to air) * Heavy metals (primarily mercury), excess nutrients and â€Å"organic enrichment† from industrial and municipal discharges (â€Å"treated† or untreated waste water released from sewer plants and industrial factories into natural water sources) These points listed above lead to a poisoned and uninhabitable environment for plants and aquatic life, as well as affect land animals and humans reliant on these systems for survival and other land-bound plant life in need of clean water for growth. Land Pollution Land pollution, the degradation of the Earth’s surfaces and soil, is caused by human activity and a misuse of natural resources. Causes of land pollution and degradation include: * Urban sprawl: Natural habitats are removed to make room for communities, usually with inefficient or irresponsible planning. Urban sprawl generally results in a waste of land area for unused development (such as excessive roads, decorative and unused areas, etc). * Poor agricultural practices: Animal manure runoff from CAFO (Confined Animal Feeding Operations), the use of chemical fertilizers, herbicides and pesticides, the practice of growing monocultures (only one crop season after season) and the deforestation required to expand farm land all contribute to degradation and pollution. * Personal consumption: Our modern culture’s desire to have more, bigger and better â€Å"things†, as well as our relationship to and habit of waste, has lead to stripping of the land, excessive mining and pollution from industrial activities. * Industrial activities: The production of chemical-laden plastics, poor quality of products, unethical practices (such as illegal dumping), and extreme emissions affect both surrounding and far-reaching areas. None of this takes into account illegal dumping, diminishing landfill space, litter,  overproduction of synthetic materials, radioactive waste and more. All land pollution is caused by a human impact on the environment and thus can be averted by our actions alone. Two of the necessary actions must be proper planning and proper usage of natural resources. For instances, animals could be taken out of CAFO and allowed to graze on mountainous or wooded areas unsuitable for buildings or crops. Using organic and sustainable farming techniques can eliminate our need for chemical applications. Clean energy, such as wind or solar power, can slowly begin to replace coal or nuclear plants. And as consumers we can lessen our human impact on the environment by demanding better quality products, environmentally ethical practices from industries and a shift toward sustainable energy. Air Pollution One bit of good news about our human impact on the environment is that air pollution is lowering and air quality is increasing. According to the U.S. Environmental Protection Agency, since 1990 to 2008: * Ozone decreased 14% * Lead decreased 78% * Nitrogen dioxide decreased 35% * Carbon monoxide decreased 68% * Sulfur dioxide decreased 59% However, 127 million people still live in areas that exceed quality standards. And some of the quality standards are far from ideal, such as ozone. The question is: what amount of air pollution is really okay? Shouldn’t we be striving for technologies or practices that virtually eliminate major polluters, such as: | Photo Source: Michael CavÃÆ' ©n| * Better public transit, electric cars, rail, and city planning etc to replace heavy commutes, fossil fuels, air travel and unwalkable communities * Retrofitting or otherwise upgrading existing factories with greener technologies such as solar panels or air filtration systems * Removing  animals from factory farms and raising them on natural diets and rotating pasture to reduce methane emissions and pollution The greatest human impact on the environment we can have is to vote with our pocket book and our actions. By supporting companies that use greener technologies, we can start a trend toward better solutions. By getting involved in community planning and zoning we can have a global impact on a local level. And by buying less â€Å"stuff†, eating less animal products and sourcing our food from sustainable farms, we can spread the word that better solutions do exist and they don’t have to cater to mega-corporations and lobbyist pressure. The Consequences Of A Human Impact On The Environment Man maketh a death which Nature never made. ~ Edward Young What most of us fail to realize is that we will never truly destroy Earth. The planet will always remain and its nature will change and adapt to the conditions. But we have evolved to rely on the very particular conditions currently in place. We have specific water and food requirements, can only tolerate certain temperature ranges and we must have an abundance of clean, breathable air. Just look at how the environment is affecting human health already. Thus the question is not whether the Earth can withstand a human impact on the environment. The real question is will we so change the environment as to drive ourselves (and other species) to extinction? Ready To Get Stepping? All of this information about the human impact on the environment is great to help you understand and formulate your own opinions to the issues, but the most important part is not your opinions; it’s how those opinions change your lifestyle. Don’t find fault. Find a remedy. ~ Henry Ford If you’re ready to get started, I’d recommend the following Steps first: * Top Ways To Go Green: These should be your starting points. They are the no-duh things and most of them are very easy to implement. * Going Green At Home: For most of us, our homes are probably our biggest carbon footprint. Pop over there to learn easy ways to save water, energy and other  resources.

Swot Analysis Of Country Oman Finance Essay - Free Essay Example

Sample details Pages: 31 Words: 9187 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? The UAE has achieved stable progress over the past three decades to emerge as a important global player in both the  political and the economic position The tremendously fast rate of economic growth until 2008 was due to the constant demand  for oil, in addition they a move their focus to a number of non-oil sectors. The UAE had maintains a dynamic political ties up with over  60 countries, mainly in Europe and Asia. The UAE is considered to be one of the foremost political forces in the Middle  East and is a member of a number of regional organizations, including the Gulf Cooperation Council (GCC), the Arab  union and the Organization of the Islamic Conference. Don’t waste time! Our writers will create an original "Swot Analysis Of Country Oman Finance Essay" essay for you Create order Under the control of former President Sheikh Zayed, the UAE transformed from a nation of large-scale poverty  to a highly developed and wealthy country. With the death of Zayed in 2004, his son, Sheikh Khalifa, immediately took  over as president. Although the government structure in the UAE is not democratic, both Zayed and Khalifa have  bear the responsibility of retain the countrys development. The government has constantly received appreciation  for its efforts to creating business opportunities in Oman. The countrys tax rule is also considered among  the best in the world for businesses. The UAE market is capable to with a well-built telecommunication network and, as a  result, the countrys IT market is slowly becoming competitive. However, the level of science education remains low. The  country has a strong integrated environmental development program. Its ecological procedures are integrated with the  Environmental Im pact Assessment (EIA) program, which is part of business practice in the UAE. PESTEL ANALYSIS OF OMAN COUNTRY https://www.free-power-point-templates.com/articles/wp-content/uploads/2012/08/pest-diagram-ppt-template-543450.jpg (Sources: www.google.com) INTRODUCTION PESTEL stands for Political, Economical, Social, Technological, Environmental and Legal. It is used to describe an analysis that determines the opportunities and risks of global growth. It is also termed as a PEST or PESTLE analysis. Political, Economical, Social, Technological, Environmental and Legal issues differ from one country to another. As a company looks to influence the advantages that the democratization of technology, information and finance, and grow beyond the national borders that previously controlled them, it is necessary that they consider a PESTEL analysis to accompany their SWOT analysis. The PESTEL analysis provides a strong outline which is used by global and multinational firm to set the stage to develop specific strategy to ease the risks involved in carry out their vision in new environments. This PEST country analysis report on Oman provides a holistic view of the country, with understanding analysis of current and future issues, supplemented with significant quantitative data to support trend analysis. FEATURES AND BENEFITS Following are benefit that business will gain if they implement pestle analysis in their planning process: Useful to know political environment: It is helpful to understand the political system in Oman through examination of key factors in the country and governance indicators. Useful to know economic situation: It is useful to understand the economic situation in Oman through a balanced evaluation of core macroeconomic matter. Useful to know demographics analysis: To understand the customer demographics in Oman through analysis of income distribution and the rural-urban split, as well as healthcare and education. Use to evaluate technology advancement: It is use to evaluate the technological background in Oman through analysis of related laws and policies, as well as patent data. Useful for controlling changes: By making effective use of PEST Analysis, it makes sure that it has united positively with the forces of change that are affecting the world. Good use of PEST Analysis helps to avoid taking action that is meant to failure for reasons beyond control. Helpful to know about new country or region: PEST is useful when we are start operating in a new country or region. Use of PEST Analysis helps to break free of lifeless assumptions, and helps to quickly adapt the reality of the new environment. HIGHLIGHTS The political landscape section discusses the evolution of the political scenario in Oman, as well as the countrys economic, social, foreign, and defence policies. The section also discusses the countrys performance according to World Bank Governance Indicators. The economic landscape section outlines the evolution of Omans economy, as well as the countrys performance in terms of GDP growth, composition by sector (agriculture, industry, and services), fiscal situation, international investment position, monetary situation, credit disbursement, banking sector, and employment. The social landscape section analyzes the governments social welfare policies, as well as the countrys performance in terms of healthcare, income distribution, and education. REASON TO USE PESTLE SWOT ANALYSIS Following are the main reason for using pestle swot: Useful to formulate goal: Strategic management is an essential aspect of managing modern businesses that involves forming goals and implements the programs that fulfil those goals. Useful to intact environmental scanning: Environmental scanning is a component of strategic management where mangers study various economic, political and social factors that might affect the business. It is helpful to small business also: It can help small businesses to identify intact markets and avoid costly mistakes. Small businesses can better compete by using these critical tools to assess opportunities and challenges. It is useful to manager for conducting an effective business: SWOT analysis and PESTLE analysis are two common strategic management equipment that the help managers brainstorm and organize their ideas during the environmental scanning process. It is broad wider concept: A main reason companies use both SWOT and PESTLE is because these tools offer broad and efficient analyses of key areas of a strategic plan. SWOT is an acronym that stands for strengths, weaknesses, opportunities and threats. PESTLE has wider coverage of business and external issues, including political, economic, social, technological, legal and environmental factors. POLITICAL ENVIRONMENT IN OMAN https://www.oxberryrisk.com/Images/political_risk_analysis.jpg INTRODUCTION OF THE SECTOR The stability and structure of a countrys government gives a basis to understand future changes in the regions political environment. Policy at the local or federal level can differ significantly. Political power in Oman is dominated by Sultan Qaboos ibn Said Al Said who is responsible for all major decision-making and government actions. Decision-making authority rests with the Sultan with contribution from his advisors, the appointed Majlis al-Dawla and members of Omans leading merchant families. Succession is a key risk concern. Sultan Qaboos has dedicated himself for promoting the countrys reconstruction, economic diversification as well as continued political stability. A process of limited elected reform has been in progress over the last several years including the introduction of direct elections for members of the counselling assembly in 2000 and universal suffrage in 2003. In recent October 2007 elections, Oman records a strong 68% voter turnout. While Oman is graduall y moving forward on political liberalization efforts, the Councils role remains largely advisory. Following is the political structure of Oman country: POLITICAL STRUCTURE MONARCHY Head of State Sultan Qaboos bin Said Al-Bu S aid Council of Ministers Composed of  the Sultans Advisors State Council (Majlis al-Dawla) 57 Appointed tribal and religious leaders Consultative Council (Majlis al-Shura) 84 member Elected body with advisory functions Major Parties Illegal Last Elections Consultative Council October 2011 THE MONARCHY The Sultan is a direct heir of Said bin Sultan, who had first opened relations with the  United States  in 1833. The Sultanate is neither political parties nor governing body, although the bicameral representative bodies provide the government with advice. The present Sultan has no direct heir, and has not publicly selected a successor. Instead, the ruling family should generally select a new Sultan after his death. If they do not select a new ruler after three days, then they open a letter left to them by the late Sultan, containing a proposal for a new Sultan. Current Sultan of Oman, Majesty Sultan  Qaboos  bin Said Al Bu Said holds an unexpected amount of power. Along with his position as Sultan, he is prime minister, defence minister, finance minister, foreign affairs minister and chair of the central bank. Moreover, Qaboos has only a few family members in his cabinet and the offices they hold are considered quite powerless. His cousin Hay him for example, is minister of national legacy and culture while his uncle, Shabib is special advisor for environmental affairs. This style of control has suggestion as none of his family members have gained the necessary managerial skills to rule Oman after Qaboos death. JUDICIAL SYSTEM The court system in Oman is regulated by Royal Decree 90/99. There are three court levels in Oman; the Elementary Court is the lowest court, followed by the Court of Appeal, and then the Supreme Court as the highest court in the country. In addition to this there is an Administrative Court that looks into cases made against the government. GOVERNMENT ATTITUDE TOWARDS FDI The government keenly support foreign direct investment into the country to increased employment opportunities for Omanis. Omanisation allowance are currently in force for six industries in the private sector, i.e. the transport, storage and communications sector at 60%,finance, insurance and real estate at 45% and industry at 35%. Authorities created the Omani Centre for Investment Promotion and Export Development (OCIPED) in 1997 with the aim of providing foreign investors with a one-stop-shop for licensing and registration procedures. Judicial transformation is in progress and the court system is considered largely fair. Corruption level are low by regional standards and do not act as a significant obstacle to foreign investment. LAND OWNERSHIP In Oman the regulation for land are expected to be less because the minister wants to increases the opportunity for tourism. The Ministry of Housing, Electricity and Water may grant permission to a company or a foreign national the Right to use a certain property for operations that promote the economic development of Oman. INCENTIVES Government incentives to promote local and foreign investment include tax exemptions; the provision of industrial plots in industrial zones for nominal charges; preference in the allocation of government land; interest-free or subsidized loans with longer terms for repayment; reduced charges for water, electricity and fuel; financial assistance for the development of economic and technical possibility studies; and the accelerate arrangement of immigration visas and permits for foreign workers. GOVERNMENT REGULATIONS AND POLICIES A foreign national desire to engage in a trade or business in Oman or to acquire an interest in the capital of an Omani company must obtain a license from the Ministry of Commerce and Industry. In general, the ministry grants a license if the paid-up capital of the Omani company in which the investment is made is at least Rs 150,000 (US$ 390,000) and if the foreign ownership of the company does not exceed 49%. The Social Security Law requires private-sector employers and their Omani employees to pay monthly contributions to an insurance fund for old age, disability and death benefits. Oman does not impose personal income tax. Income tax is levied on people that are wholly owned by Omani nationals, entities with foreign participation, branches of foreign companies and Omani sole proprietorships. All companies incorporated in Oman irrespective of the extent of foreign ownership and branches of companies registered in the other member states of the Gulf Co-operation Council (Bahrain, Qatar, Kuwait, Saudi Arabia and the United Arab Emirates) are taxed at a rate of 12%, for income exceeding RO 30,000. A single tax rate applies to branches of foreign companies, at rates ranging from 0% to 30%. Petroleum companies are subject to tax under specific provisions and rates. Omani sole proprietorships are taxed at a rate of 12%.The Omani Labour Law requires employers to pay end-of-service benefits to expatriate employees. FOREIGN INVESTMENT With the exemption of certain restrictions on the foreign-currency holdings of  commercial banks, Oman does not impose exchange controls. In general, Oman does not restrict the transfer of funds overseas of equity or debt capital, interest, dividends, branch profits, royalties, management and technical service fees, and personal savings. RESTRICTIONS ON FOREIGN INVESTMENT The Foreign Capital Investment Law (Royal Decree No. 102 of 1994) governs foreign investment in Oman. If the foreign body want to invest in Omani companies they must file applications for licenses with the Ministry of  Commerce and Industry. The ministry grants licenses to applicants if   both of the following conditions apply: The paid-up capital of the Omani company in which the investment is made is at least Rs.1, 50, 000(US$390,000). The foreign ownership of the company does not exceed 49%.The Ministry may exempt the following entities from the licensing conditions : Companies conducting business through special contracts or agreements with the government; Companies established by Royal Decree; and Parties conducting a business that the Council of Ministers declares necessary to the country. TAX EXEMPTIONS In Oman tax is exempted from corporate tax and customs duty which may be granted by the Ministry of Finance. From the following activities tax is exempted such as manufacturing, mining, agriculture, fishing, fish farming, fish processing, aquaculture, animal breeding, tourism, the export of manufactured and reprocessed products, operation of colleges, universities, and higher education institutes, private schools, training institutes, private hospitals and public utilities. Exemptions are granted for five year periods effective from the date when production begins or services are first rendered; a five year extension may be granted. .Management agreements and construction contracts do not qualify for tax exemptions. Companies engaged in the activities listed above may also obtain an exemption from the payment of customs duty on exports and on imports of equipment, spare parts and raw materials. IMPORTING The import of goods into Oman requires an import license. The import of  certain classes of goods, including alcohol, firearms and explosives, requires a special import license. Goods entering Oman must have certificates of origin. Oman follows Arab boycott rules, which forbid the import of goods originating from Israel. EXPORTS Oman does not restrict exports. However, the export of items of historical value requires an export license. CUSTOMS DUTIES In Oman most imported goods are subject to pay customs duty at a flat rate of 5% on their cost-insurance freight (CIF) value. Consumer goods, including food substance are exempt from customs duty whereas alcohol and tobacco are subject to pay higher rates of duty. Goods produced within the GCC generally may be imported duty-free. In certain circumstances, Oman may allow the contractors to import duty-free equipment and materials for use the on government, PDO and OLNG projects. Since from 2005 Oman has entered into a Free Trade Agreement with the United States of  America. POWER ON THE TOURISM SECTOR The government promote foreign contribution to develop the country tourism industry. Since the mid-1980s, the government has gradually opened its desert, mountains and coastlines to foreign tourists and the Ministry of Tourism has share part in various international tourism exhibitions to introduce Oman to the world tourist trade. Due to recent changes made in visa a regulation that had increases arrival of a large number of populations which in turn are likely to increase the flow of  tourists in Oman. Due to the development of International Airport which increase the tourist probable of the country. A new Tourism Ministry was set up in 2004 to provide push to this sector. The Ministry of Tourism has free provisional tourist arrivals figures for 2011. These showed a slight decline of 1.8% in arrivals over the year to 1,427,611. In light of this to some extent unsatisfactory figure, BMI has change down its predict for tourist arrivals in 2012, believe that an increase of 10% is now the most likely outcome for the year, down from 15% previously. BMIs predict is in line with the governments outlook for the industry. ECONOMIC ENVIRONMENT https://t2.gstatic.com/images?q=tbn:ANd9GcQnKP8I_IH7yqQSamEgMPjoj-OcN1qkxFY8WKYN5xiM_sYx59qBHwTwJjP3 (Sources: www.google.com) INTRODUCTION OF THE SECTOR Omans economy is based mainly on petroleum and natural gas. With limited energy reserves, Oman has decided to expand its economy away from oil and gas production. The Oman Vision 2020 development plan highlighted the need for the Omani economy to expand its economy through a process of  industrialization and privatization. The main single industrial investment target is the port city of Sohar, near the UAE border. The government has direct with several main privatization programs, including power generation projects, and other power and water generation plan. Oman expects to triple the industrys one percent contribution to GDP and finally create over 1, 14,000 tourism-related jobs. Besides these the government had built a second airstrip and new terminal at Muscat International Airport by 2011. The government is also in the procedure of expanding its privatization efforts to its wastewater and solid waste management operation. In addition to this the Omanis aggressively m arketing itself as a enchanting, environmentally aware tourist goal. The Omani government is developing a port at Duqm, an evenly populated area along the Arabian Sea. This strategy call for the construction of a dry dock facility, oil refinery, petrochemicals complex and fish processing centre to ultimately fight with Dubais Jebel Ali port complex. The Duqm development plan also calls for the construction of an airport to facilitate passenger and cargo shipments and a three-hotel tourism resort complex. MACRO ECONOMIC DATA Following is the macro data of Oman country. YEAR 2005 2006 2007 2008 2009 2010 2011 GDP Normal GDP 309.5 36,804 4,198 60,299 46,115 56,251 61,840 Real GDP 4.0 5.5 6.8 12.8 2.0 3.6 3.8 Origin of GDP Agriculture -2.9 -4.6 4.6 0.5 1.5 1.6 1.6 Industry 5.6 -1.7 3.6 11.9 0.3 3.8 3.9 Services 6.7 12.2 9.5 1.3 1.2 3.4 3.7 Population income Population 2.5 2.6 2.7 2.9 3.2 3.3 3.4 GDP per head 20,396 21,639 22,360 24,629 22,960 23,151 23,440 Fiscal indicators Govt. Indicators 38.0 35.2 36.7 32.9 38.1 36.3 34.0 Govt. Expenditure 35.4 34.9 36.5 32.6 41.9 37.1 35.0 Govt. Balance 2.5 0.3 0.2 0.4 (3.8) (0.8) (1.0) Net public debt 4.9 3.8 3.1 2.5 5.5 4.5 4.1 Prices financial indicators Consumer prices (average, %) N/A N/A N/A N/A N/A N/A N/A Lending interest rate (average %) 7. 1 7.4 7.3 7.1 7.4 6.8 6.9 (Sources: GCC construction fact sheet) GROWTH RATE GROWTH RATE AMOUNT GDP ( APPROX) $59.946billion PER  CAPITA GDP (APPROX.) $21,646 REAL GDP GROWTH RATE (APPROX.): 7.8% The government is looking to expand the economy beyond the hydrocarbon sector, which still account for about 75% of export earnings, given the limited sector possible to force and maintain growth beyond 2020. Foreign investment maintain of natural gas projects, along with the government investments will sustain growth. Oil prices natural gas represents a small proportion of GDP and export revenues. To this end, the government is shifting its plan to aim renewable energy as a key developmental goal with hope that it will contribute about 30% of GDP by 2020. PURCHASING POWER G:images omanOman-50Rials-f.jpg (Sources: www.google.com) The inflation rate for the year ended 2010 was about 4%. This was the outcome of declining crude oil prices. The oil and natural gas being the core business of  Omanis it play an important role in determine the per capita income and their purchasing power. However, the situation is changing. There is gradual boom in the per capita income.  The period of rapid growth has come to an end, and in the absence of a sharp recovery in oil prices Oman looks set to grow in the 3-4% range over the coming 5-10 years. The cost of living in Oman is high as most of the goods are imported. MINERAL RESOURCES https://www.omanet.om/arabic/economic/images/9-9.jpg Omans mineral resources include chromite, dolomite, zinc, limestone, gypsum, silicon, copper, gold, cobalt, and iron. Several industries have grown up around them as part of the national development process which, in turn, has boosted the minerals sectors contribution to the nations GDP as well as providing jobs for Omanis. The mineral sectors operations include mining and quarrying, with several projects recently completed, including: an economic feasibility study on silica ore in Wadi Buwa and Abutan in the Wusta Region, which confirmed that there were exploitable reserves of around 28 million tonnes at the two sites; a feasibility study on the production of magnesium metal from dolomite ore; a draft study on processing limestone derivatives; a project to produce geological maps of the Sharqiyah Region; economic feasibility studies on the exploitation of gold and copper ores in the Ghaizeen area; a study on raw materials in the wilayats of Duqm and Sur for use in the Sultanates cement industry; and a study on the construction of a new minerals laboratory at Ghala in the Governorate of Muscat. Metkore Alloys will build a world-class 1,65,000 tonnes per annum capacity ferro chrome smelter project in Oman with an envisaged investment of $80 million. SOURCE OF FUNDS AND THEIR COST Oman commercial banks are the primary source of short, medium, and long-term credit. Because there is no restriction in obtaining credit in Oman they can also obtain credit from commercial banks in the neighbouring Gulf countries. The Oman Development Bank they grant loans to small and medium-size companies, for less than Rs.2,50,000. Investors also obtain financing from the Gulf Investment Corporation located in Kuwait which is established by the GCC, is a major financial institution whose main purpose is to invest in the equity and provide loan funding to the new companies. SECURITIES MARKET The Capital Market Authority in Oman is established in 1998 which regulates the securities market. Muscat Securities Market, which began its operations in 1989, over sees the flow of funds into securities and develops the local financial market. Membership in the exchange is compulsory for Omani licensed banks, specialized loan institutions, authorized financial intermediaries, joint stock companies and Omani public authorities whose shares are registered on the securities market.   Commercial banks, joint stock investment and brokerage companies which is registered in Oman they may establish investment funds called joint investment accounts. The accounts are listed on the Muscat Securities Market and may be up to 49% foreign-owned these funds are exempt from taxation. INFRASTRUCTURE AND PHYSICAL FACILITIES The Omani government is developing a port at Duqm, which is a less populated area along the Arabian Sea. This plans call for the construction of a dry dock facility, oil refinery, petrochemicals complex and fish processing centre to eventually fight with Dubais Jebel Ali port complex. The plan also calls for the construction of an airport to facilitate passenger and cargo shipments and a three-hotel tourism resort complex. . Oman is focusing on its port infrastructure as well. Two of Omans principal ports, Sohar and Salalah, are aggressively moving forward on expansion of  their respective. To increases the tourism facilities the government will build a second runway and much-needed new terminal at Muscat International Airport in 2011, they also built a new taxiway at Salalah Airport in 2010, and new airports at Sohar, Ras al-Hadd, and Duqm. Oman is focusing on its port infrastructure as well. Two of Omans prime ports, Sohar and Salalah, are aggressively moving forward on ex pansion of  their respective.. Oman is focusing on its port infrastructure as well. SIZE OF MARKET In 2002, Oman attracted some 1.2 million foreign visitors; about 7,00,000 came from the GCC (GULF CO-OPERTION COUNCIL) states. And of those700, 000 tourists, an overwhelming 85 percent of them came from the UAE. For all the talk in Muscat and Salalah about bringing in European tourists, the fact remains that the bulk of the sultanates visitors come from a lot closer to home- and, of those, huge numbers are simply driving across the border for a very short-term stay. Oman has so much more to offer than the other Gulf States in terms of  culture and history. Oman offers an real Arabian experience thats not easily available elsewhere in the region. TRADE: https://www.omanet.om/arabic/economic/images/tra03.jpg (Sources: www.Omannet.Om) The Omanis have been trader since ancient times. Their transport and group carried Omani goods including frankincense, dates and limes across the seas and over the old frankincense and silk routes, encourage cultural interactions with other peoples. Today, Oman is a part of a number of economic communities including the Arab Gulf Co- operation Council (AGCC), the Greater Arab Free Trade Zone, the Indian Ocean Rim Association for Regional Cooperation (IORARC) and the World Trade Organisation (WTO). The Sultanate has raised its laws on investment activity and has begun One Stop Shop permission facilities along with easy, transparent procedures. There is protected coordination between the bodies and authorities involved in providing services for investors, while current progress towards the establishment of e-government have led to a growing confidence on electronic channels. Commercial laws and regulations are being modernized, including the Law on Trade Marks, Descriptions, Trade Secrets and Protection against Unfair Competition, the regulation of foreign trade representation offices, the Consumer Protection Law and the Law on the Protection of Intellectual Property. Beside these measures, the country has also raised its ports and established free trade zones in all Mazyounah and Salalah. Omani goods are exported to the markets to world countries. Government authorities and departments give main concern to Omani products when making purchases and Omani goods are actively promoted in the local market through seminars and exhibitions. Broader promotion campaigns are also held in the regional and world markets, where Omani products have already begun to make their mark because of their high quality specifications. The Ministry of Commerce and Industry has established a certificate by the United Kingdoms Human Investment Programme, recognizing it as an investor in human resources. SOCIO-CULTURAL ENVIRONMENT https://www.secs.unibo.it/NR/rdonlyres/3611A3BD-7B6B-4531-8AAF-181E56EBA9CE/177588/Fotolia_895776_Ometti2Cerchi.jpg (Sources: www.google.com) INTRODUCTION OF THE SECTOR Since Oman is a Muslim country, all the activities are influenced by the Muslim culture. The main characteristic of Omani culture is respect for others and it prevents others from letting their face down. In Oman the foreigners have to make sure that they dont make any unpleasant remarks in the public places. Otherwise they feel insulted and let down in the society. Language: In Oman country Arabic is local language. LIFE STYLE OF THE OMANIS: Following are key factors that determine the living style of the population in Oman. CULTURE: In order to fully understand any country culture, is very important to know because it influence society whole. In Oman Islam culture is followed by every people. Oman is the Muslim country so majority of them follows Ibrahim sect it is very conservative culture. Islam directs every part of a Muslim life, from holidays to the food they eat to how they dress and do business. Kindness, humility and respect for others are key thought which are present in both social and professional field of life. ART: Traditional handicraft such as silver and gold jewelry, goat- and camel-hair carpet, woven baskets, water jugs, weapon and khanjar, a special type of dagger etc are generally practiced in this country. Besides these, drawing, painting, photography etc are also practiced. MUSIC: Music in Oman is a vital part of art. The traditional folk songs are very popular and practiced in the country. Arabic music has left a deep influence in the Oman music. Health: Life expectancy at birth in Oman is approximate to be 74.47 years in 2012. As of 1999, there were an approximate 1.3 physicians and 2.2 hospital beds per 1,000 people. In 1993, 89% of the population had access to health care services. In 2000, 99% of the population had access to health care services. During the last three decades, the Oman health care system has established and account great achievements in health care services and preventive and curative medicine. In 2001, Oman was ranked number 8 by the World Health Organization. HOSPITALITY:   Omanis are well-known for their significant hospitality and kindness in both social and professional outlook. In Oman the guest are welcome with a variety of traditions and ritual way, the most important of which is the serving of coffee, orkahwa. Omani kindness is closely connected to their desire to establish trust and build relationships with people before doing business. Because of theses friendly climate foreigners show their appreciation for their generosity and spend time getting acquainted with their Omani business complement. FACE: Dignity and respect are key elements in Omani culture, preserved mainly by the concept of saving face. The Omanis are very compromise, patience and self-control in nature so that avoid the embarrassing or putting others down so as prevent them from losing face. Because of this nature of Omanis public criticisms are rare. When doing business with Omanis it is important to remember this and avoid doing anything which might offend them or make them look bad in front of others. FAMILY: Omani culture places a high significance on family and ethnic relations. In Oman the family and ethnic group play important a role in shaping a person values and behaviour. Loyalty is very important among people even in a business situation also where it is not rare to have several members of one family working for the same company. COST OF LIVING: Because Oman imports most of its goods, the country cost of living is comparatively high. BUSINESS HOURS: The business week is from Saturday through Thursday morning. In Oman Friday is usually a day of rest, although certain shops may be open for restricted hours. During Ramadan, the holy month of fasting, business hours are restricted. SOCIAL AND BUSINESS CUSTOMS: Oman is a dedicated Muslim country, and its local customs should be respected. In Oman dress is usually very conservative; it should cover the shoulders and the tops of  the arms, and should extend to below the knees. Photographing individuals, particularly women, is often outlook with disapproval; therefore, permission to take photographs should always be required. Due to the misuse or abuse of  alcohol may cause offense; alcohol should not be consumed in public places, unless these places are licensed to serve alcohol. During the holy month of  Ramadan, in Oman Muslims fast from sunrise until sunset. Eating, drinking or smoking in public places during daylight hours is not allowed. All non-Muslims in the presence or sight of a Muslim should avoid these activities during the period of the fast. ATTITUDE: In Omanis people attitudes towards time are much more comfortable than in many Western cultures. In Oman people and relationships are more important than schedules and punctuality. It is not uncommon, therefore, for Omanis to arrive late but foreigners are expected to arrive on time. Meetings should be scheduled in advance and confirmed a few days prior. Meetings are often cancelled or rescheduled however with little notice so always come prepared with a business card or letter to leave to let them know you were there. EDUCATION AMONG THE OMANIS: Although schooling is not compulsory, education is now almost universal. Oman offers primary, secondary and single-sex schools throughout the country, except in remote villages. At the end of 2002, Oman had 1,019government schools with 2, 98,000 male and 2, 80,000 female students and18, 538 teachers; by contrast, in 1970, Oman had three boys schools with 909 students and 30teachers. To improve its educational system, the government accord main concern to educating Omanis to become teachers. In 1986, Sultan Qaboos University was established in 2002, around 12,000 students were enrolled, 50% of whom were female. In 1993, the College of  Commerce and Economics was established and the College of Law and Shari was established in 1997. Oman run technical and industrial colleges, teacher-training colleges, vocational training centres, an Institute of Health Science, an Institute of Banking and Financial Studies and several private colleges for engineering, commerce and business management. The government offers adult education to improve general literacy and to improve the written and spoken Arabic language skills of Omanis. The Sultanate is focusing on education as a means to rapidly change the country from a traditional agrarian society to an active participant to modern global economy. The Sultanate recognises the importance of  women education in the nation-building process. FOOD: https://www.omanet.om/english/culture/images/Fold%20%2015%20%2093.jpg (Sources: www.Omannet.OM) The main daily meal is usually eaten at midday, while the evening meal is lighter. During Ramadan, dinner is served after the Taraweeh prayers, sometimes as late as 11 pm. Maqbous is a rice dish, with yellow rice and saffron served and cooked over spicy red or white meat. Arsia is a festival meal, provide during celebrations, which consists of mashed rice flavored with spices. Another popular festival meal is shuwa, which is meat cooked very slowly (sometimes for up to 2 days) in an underground clay oven. The meat becomes really tender and it is infused with spices and herbs before cooking to give it a very different taste. Fish is often used in main dishes too, and the kingfish is a popular item. Mashuai is a meal consisting of a whole spit-roasted kingfish served with lemon rice. Rukhal bread is a thin, round bread originally baked over a fire made from palm leaves. It is eate n at any meal, normally served with Omani honey for breakfast or crumble over curry for dinner. Chicken, fish and mutton are regularly used in dishes. While spices, herbs, onion, garlic and lime are liberally used in traditional Omani cooking, unlike similar Asian food, it is not hot or spicy. WEARING FOR MEN: [Men Dress] (Sources: www.Omannet.OM) The national dress for Omani men is a simple, ankle-length, collarless gown with long sleeves called the dishdasha. The colour most frequently worn is white, although a variety of other colours such as black, blue, brown and lilac can also be seen. Its main adornment is a tassel (furakha) sewn into the neckline, which can be impregnated with perfume. Underneath the dishdasha, a plain piece of cloth covering the body is worn from the waist down. Omani men may wear a variety of head dresses. The muzzar is a square of finely woven woollen or cotton fabric, wrapped and folded into a turban. Underneath this, the kummar, an intricately embroidered cap, is sometimes worn. The shal, a long strip of cloth acting as a holder for the khanjar (a silver, hand-crafted knife or dagger) may be made from the same material as the muzzar. Alternatively, the holder may be fashioned in the form of a belt made from leather and silver, which is called a sapta. On formal occas ions, the dishdasha may be covered by a black or beige cloak, called a bisht. The embroidery edging the cloak is often in silver or gold thread and it is intricate in detail. Some men carry the assa, a stick, which can have practical uses or is simply used as an accessory during formal events. Omani men, on the whole, wear sandals on their feet. WEARING OF WOMEN:[Women Dress] (Sources: www.Omannet.Om) Omani women have very colourful costumes which vary from region to region. The main components of a womans outfit include of a dress which is worn over trousers (sirwal) and the headdress, called the lihaf. There are numerous traditional styles of Omani costume seen in Muscat. However, there are three main types which show vibrant colours, embroidery and decorations. One style of costume is quite flowing and resembles that worn by the women of the Interior, while another is decorated with distinct silver bands. The embroidery on these dresses can take around two months to comp lete. https://www.savvykenya.com/wp-content/uploads/2011/05/animated_computer_student_3.gif TECHNOLOGICAL ENVIRONMENT INTRODUCTION OF THE SECTOR The level of technological advancement in a country can positively or negatively affect the opportunities available for a business. The rise of mobile technology, wireless internet, access to electricity, internet access and transportation networks all influence the ease of doing business. Technology is very important in todays economy as it play important role in economic development of any country. A region with a strong technological establishment enables companies to influence multiple tools like mobile technology and Enterprise 2.0 methodologies to modernize operations, eliminate bottlenecks and provide their workforce with collaborative knowledge management systems. On the other hand, many countries may not be as technologically advanced from ones country reasons may be such as their citizens demographics falling beyond down the product distribution curve (segmenting technology consumers into innovators, early adopters, early majority, late majority, and laggards), infr astructure challenges hindering electricity or communication lines, or a lack of foreign direct investment from multinational corporations providing capital infusion. In order to learn more about the technological environment of an area and a regions tendency to adopt new technologies, one may look to a circulation model which uses historical consumer purchase data in order to find the rate of product adoption among potential consumers. INFORMATION TECHNOLOGY MARKET OVERVIEW: The total size of the Oman IT market in 2010 is estimated by BMI at around US$327mn, up from US$308mn in 2009. BMI expects a market compound annual growth rate (CAGR) of 5% for 2010-2014.Omans economy is relatively well positioned for the post-credit crisis era, but IT spending is not seen as returning to its previous rate of growth over the forecast period. Omans IT market is only about 10% of the size of the Saudi Arabian market, but the Omani government is investing in IT as part of its Digital Oman scheme and strategy to diversify the economy. In addition to in progress demand from the oil and gas sector, this should generate IT spending in verticals such as telecoms, financial services and aviation. Economic reform and trade liberalisation has increased the spending of both public sector organisations and enterprises. Growth in e-commerce will also make spending by enterprise on e-commerce phase and back-office systems. Oil and gas stay a support to the local economy and wi ll generate spending on customized solutions, hardware and software support. Industry Developments in August 2009, Omans Information Technology Authority (ITA) reveal a new e-Oman brand. The governments e-Oman goals include connection Omans digital divide and making e-government service available to all citizens and residents. In 2009, the ITA was preparing to launch an E-Government Services Portal, a gateway to services offered by government departments via the internet. A key driver of Omani e-services development is expected to be the e-Purse initiative, launched in 2009.The e-Purse, which will be fixed in national ID and residence cards, was being implemented by the ITA in association with the Royal Oman Police and Bank Muscat. TELECOMMUNICATIONS MARKET OVERVIEW Telecommunication facilities are important for doing any business activities. The telecoms sector in Oman is comparatively undeveloped for the region and for the GDP per capita. But now this situation has begun to change, with the introduction of some competition in the market, but many likely remains. Both fixed-line and mobile telecoms access levels are low but since the launch of  second mobile operator Nawras, mobile subscriber growth has increased rapidly. Strong growth charge has also been recorded in the broadband market, from low levels, as present Oman Tel prepares for further competition. This report provides an overview of the telecommunications market in Oman, go with by related statistics. Information technology and communications have now become the main elements that move forward and help Oman in its national development process. Internet access in most developing countries like Oman is still low as resist to mobiles distribution, despite the government pla ns and strategies to enhance internet distribution. Internet subscribers comprised about 2.5% of the general population of Oman. In contrast, the number of mobile holders increased substantially since the launch of these services in 1996. Prepaid mobile services and SMS were introduced in 2001 and both are currently popular with subscribers. Such fine appeal influenced many government organizations to go mobile with their services. PUSH SERVICES Muscat Securities Market has developed a paid service that enables investors to receive regular updates on market and stock alerts via SMS (Oman Mobile, 2007b). This service also enables users to get an SMS every 30 minutes on market movers top winners, losers and most active companies (Oman Mobile, 2007c). The Civil Aviation and Meteorology in cooperation with Oman Mobile had introduced a weather forecast service for most towns in Oman that allows users to receive weather reports in their mobiles (Oman Mobile, 2007d). Other public organizations have also started to send messages to citizens informing them about certain activities and events. For example, the Public Authority for Social Insurance has currently begun a public promotion to advertise its services and their apparent benefits to clients. Another example is in Oman demonstrative Board and Ministry of Manpower where they now send notification messages to clients about their transactions and other different issues such as new tenders and job vacancies etc. PULL SERVICES Muscat Municipality developed an m-parking system which enables motorists to pay parking fees via SMS (Muscat Municipality, 2007). Drivers can now SMS details of their vehicle plate number to a short code number 90091 and get a confirmation message with allocated time. Five minutes before the allocated time terminate, the municipality sends a reminding message to motorists asking them either to move their vehicles or renew their parking. The Royal Oman Police (ROP) begins a mobile service allowing drivers to inquire and receive information about their traffic offences. Motorists are required to send a message of their ID and vehicle details to 3004 and will receive information on the number of traffic offences and amount payable. This helpful the parents of their sons and daughters driving activities and business owners can keep monitoring of their companys drivers violations on time which can help in reducing the traffic offences. The Ministry of Education now se nds the final general certificate results to students via SMS. Alternatively, students can inquire about their results by messaging their seats numbers to 92020 and receive their final marks (Oman Mobile, 2007a). In addition, the Higher Education Admission Center now informs students of their admission status in different institutions via SMS allowing them to accept or reject the offer by messaging back their choice. ENVIORNMENTAL ANALYSIS https://www.7techies.com/finaljpg/Enviornment.jpg INTRODUCTION OF THE SECTOR The Sultanate of Oman resides in the eastern corner of the Arabian Peninsula, enlarge more than 1700 km from the Strait of Hormuz in the north to the frontiers of Yemen in the south. The Musandam peninsula, the most northern point of Oman is separated from the rest of the country by Fujaira, which is one of the United Arab Emirates. Oman lies between latitudes  16 °Ãƒâ€šÃ‚  and  28 ° N, and longitudes  52 °Ãƒâ€šÃ‚  and  60 ° E. It occupy total area of about 309,500 sq. km, of which mountains, deserts and coastal plains represent 16%, 81% and 3%, respectively. A vast stony desert plain covers most of central Oman, with mountain ranges along the north (Al Hajar Mountains) and southeast coast, where the countrys main cities are also located: the capital city  Muscat,  Sohar  and  Sur  in the north, and  Salalah  in the south. Omans climate is hot and dry in the core and humid along the coast. During p ast period Oman was covered by ocean, view by the large numbers of fossilized shells existing in areas of the desert away from the modern coastline. https://upload.wikimedia.org/wikipedia/commons/thumb/f/f7/Oman-Oasis.jpg/220px-Oman-Oasis.jpg (Deserts of Oman, sources: Wikipedia) The peninsula of  Macadam which has a planned location on the  Strait of Hormuz, is separated from the rest of Oman by the  United Arab Emirates.  The series of small towns known collectively as  Dibba  are the gateway to the Macadam peninsula on land and the fishing villages of Macadam by sea, with boats available for hire at Kasha for trips into the Macadam peninsula by sea. Madhas boundary was settled in 1969, with the north-east corner of Madha Within the Madha exclave is a UAE  cooperative  called  Nahwa, belonging to the Emirate of Sharjah, situated about 8  km (5  mi) along a dirt track west of the town of New Ma dha, consisting of about forty houses with a clinic and Following table shows the geography details about the Oman: Geography of Oman Coastline 2,092  km Bordering countries Saudi Arabia, UAE and Yemen CLIMATE Oman has a hot climate and very little rainfall. Annual rainfall in Muscat averages 100  mm (3.9  in), falling mostly in January.  Dhoar  is subject to the southwest  monsoon, and rainfall up to 640  mm (25.2  in) has been recorded in the rainy season from late June to October while the mountain areas receive more plentiful rainfall, some parts of the coast, particularly near the island of  Masirah, sometimes receive no rain at all within the course of a year. The climate generally is very hot, with temperatures reaching around  50  °C  (122.0  Ã‚ °F)  (peak) in the hot season, from May to September. Following are climate record from the month of January to December: month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year average high  °f ( °c) 81 (27) 79 (26) 84 (29) 93 (34) 102 (39) 104 (40) 100 (38) 97 (36) 97 (36) 95 (35) 86 (30) 81 (27) 91.5 (33.1) average low  °f ( °c) 63 (17) 63 (17) 70 (21) 75 (24) 84 (29) 88 (31) 86 (30) 82 (28) 81 (27) 75 (24) 70 (21) 64 (18) 75.1 (23.9) precipitation  inches (mm) 0.5 (12.7) 1 (25.4) 0.598 (15.2) 0.701 (17.8) 0.299 (7.6) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 0.299 (7.6) 0.5 (12.7) 3.9 (99) (Sources: Wikipedia) FLORA AND FAUNA https://upload.wikimedia.org/wikipedia/commons/thumb/8/87/Nakhalfarms.jpg/220px-Nakhalfarms.jpg (Sources: Wikipedia. Palm trees sultanate region) Desert plant  and desert grass, common to southern Arabia, are found, but vegetation is sparse in the interior plateau, which is largely  stony  desert. The greater monsoon rainfall in Dhofar and the mountains makes the growth there more lavish during summer;  coconut palms  grow plentifully in the coastal plains of Dhofar  is produced in the hills. AGRICULTURE LAND IN OMAN https://www.omanet.om/arabic/economic/images/ag01.jpg The results of complete soil surveys carried out by the Ministry of Agriculture show the presence of more than 2.3 million hectares of land in the Sultanate. However, the size of the cultivated area is in fact 73,670 hectares (MoA, 2009*). Over half the agricultural area is located in the Batinah Plain in the north, which represents about 3 % of the area of the country. Seasonal fruit crops occupy the first rank of the total cultivated area in Oman with 37,082 hectares of which 31365 hectares are with date palm. The other cropped area under intercropping includes 28,017 hectares of which 10,735 hectares are with field crops under crop rotation and series, which would raise cropping strength to the extent of 120%. It is clear that there is an increase in agricultural production in 2009 as compared to previous years and the date palm occupies first in both area (31,365 ha) and production (255,871 tons). Date palm represents 85% of the total area planted with fruits followed by banana, mango, Omani lime, and Omani coconuts. Al-Batinah region leads first in the cultivation of vegetables that cover highest of 79% of the area as compared to other regions. Besides, there are also other plant genetic resources such as indigenous grasses, medicinal plants, pastures, trees and shrubs, and forest resources. Farming systems include production of crops viz. dates and fruits, vegetables, fodder and field crops, as well as livestock such as cattle, sheep, goats, and poultry. Farm holdings vary from less than 0.4 ha to more than 84 ha. Those less than 1.26 ha are about 11% of total farm holdings; those range between 1.26 to 2.60 ha are 65%, while those greater than 12.6 ha are about 23.8%. IRRIGATION SYSTEM IN OMAN: Water plays a significant role in the development of Agriculture in Oman, which is largely dependent on groundwater. There are numbers of afalaj (falaj-singular), springs (oasis) and wells that provide the source of water for agriculture since ancient times. Recently, treated waste-water was also form non-conventional sources of water. Sultanate of Oman is known for its unique irrigation systems of springs known as aflaj (falajsingular), which are one of the most important and oldest irrigation techniques established by the ancient Omanis thousands of years ago which is a vital part of the tradition of Oman. There are so far 3,017 live aflaj out of total 4,112 which contribute 404 million cubic meters of water to agriculture. Most of the oasis are used for irrigation through aflaj. The aflaj located near to the stream wadis are often affected by water erosion. Wells and springs play an important role in the life of the Omani society and are used to provide water to the populatio n and farms for agriculture. There are 127,000 wells providing 720 million cubic meters of water needs of agriculture in the Sultanate. The government has established mega-projects for the maintenance and renovation and repair of wells and springs to reduce loss of water and increase the efficiency of irrigation for agricultural purposes. There are laws and regulations by the government to prevent indiscriminate drilling of water wells. In the Sultanate of Oman, the Government is doing efforts to provide water to its citizens by desalination of seawater as an additional source of water for drinking and household uses. The government has so far established many desalination plants since first desalination plant that began operating in 1976 with the estimated capacity of about one million cubic meters per year. The total production of all available desalination stations is about 418,000 cubic meters per day, equivalent to 152 million cubic meters per year. The treated wastewa ter (TWW) has an importance in Oman for use to irrigate plants of garden and road side landscapes as an alternative source of water as well as to recharge the aquifers. There are 51 sewage plants established by the Ministry of Regional Municipalities and Water Resources in different regions. It is expected that the total quantity of treated wastewater would reach up to 270,000 cubic meters per day, which is equivalent to 100 million cubic meters per year, by 2012. At present, the production of treated water is nearly 60,000 gallons per day for use to irrigate parks and green landscapes, which is expected to increase sharply in 2010 after the completion of a sanitation project for the city of Muscat. ANIMAL RESOURCES The diversified livestock in Oman that include cows, sheep, goats and camels, is on the rise annually with goats representing the highest (1557148 to 1685420), followed by sheep and cows while camels were least (301558 to 326240) According to Agriculture Census-2004/2005 of the Ministry of Agriculture, there were 24,730,000 poultry birds which included commercial layers and broilers and domestic birds, spread over different regions of the country. In respect of local production of poultry meat, table eggs and fresh milk, it is evident that fresh milk production has rising trend from 2007(47.63 thousand tons) to 2009 (49.57 thousand tons) whereas poultry meat production had decreasing trend (26.5 thousand tons to 21.0 thousand tons), which could be at the expense of table eggs, whose production was found increased (179 million to 187 million) Local production of fresh milk (1000 tons), poultry meat (1000 tons) and table eggs (million) in the Sultanate Product 2007 2008 2009 Fresh milk 47.63 48.60 49.57 Poultry meat 26.50 20.90 21.00 Eggs 179 185 187 (Source: MoA. 2009. Annual Agriculture Statistics. Directorate General of Planning and Investment Promotions. Department of Statistics and Information. Ministry of Agriculture, Oman. 74 p.) FISHERIES: https://www.omanet.om/arabic/economic/images/fi01.jpg With a coastline over 1,700 kilometres long, Oman is one of the main fish-producing countries in the region and the fisheries sector is among its most gifted sectors. Fishing is one of the countrys oldest occupations. Fish farming is now a rising industry and a fish farming centre is currently being set up, while the quality of the catches is being enhanced, following the creation of the Fisheries Quality Control Centre. Marketing process has been modernized across the country and exports are now better regulated, particularly with regard to certain types of rare, high value fish. Fisheries training centres have been established in al Khabourah and Salalah, data and statistics on the fishing industry have been raise and new fishing dock have been built and equipped with modern facilities; today there are fishing port along the Omani coast. The Seventh Five-year Development Plan (2011-2015) is dedicated to developing and maint aining the Sultanates marine resources, ensuring that the fishing grounds and coastal areas are properly managed, regulated and monitored. The Indian Ocean Rim Association for Regional Cooperation (IORARC)s Fisheries Support Unit is based in Oman. The unit promotes cooperation between member states in the management of this essential and renewable resource. LEGAL ENVIRONMENT https://img.ehowcdn.com/article-new/ehow/images/a08/br/sm/write-subsection-legal-symbols-800800.jpg (Sources: www.google.com) INTRODUCTION OF THE SECTOR One should always consult a legal representative when doing business in order to make certain that all laws and regulations are followed. Legal environments change between the district, city, state/province and national levels. complexity within certain industries can have a strong influence on the ease of doing business, complicating administrative, financial, and regulatory processes, among others. Oman basic Law (Royal Decree No. 101 of 1996) states that the Islamic code the Sharia is the basis for Omani legislation. The Sultan issues laws consistent with the Basic Law through Royal Decrees. Judicial power lies with the courts, which are independent of the executive authority. The Commercial Court has jurisdiction over commercial disputes. In enforcing agreements between partners and reaching decisions based on the Sharia, the court applies Omani laws established by Royal Decrees. The Judicial Authority Law organizes the following different courts in Oman: The Supreme Court, The Appellate Courts, the Preliminary courts (Court of First Instance), The Courts of Summary Jurisdiction Other components of the legal system includes the Administrative Judicature Court, the Supreme Judicial Council and the Public Prosecution Authority. THE CONSULTATIVE COUNCIL In November 1991, Sultan Qaboos replaced the 10-year-old State Consultative Council with the  Consultative Assembly  (Majlis al-Shura) to systematize and widen public participation in government. The Assembly has 84 elected members and exercise some legislative powers. Representatives were chosen in the following manner: in local group they in each of the 59 districts sent the names of three nominees, whose recommendation were review by a cabinet committee. These names were then forwarded to the Sultan, who made the final selection. The Consultative Assembly serves as a channel of information between the people and the government ministries. It is authorize to review drafts of economic and social legislation prepared by service ministries, such as communications and housing, and to provide recommendations. Service ministers also may be call before the  Majlis  to take action to the legislative body questions. They had no authority in the areas of foreign affairs, defence, security, and finances. The  Council of State  (Majlis al-Dawla) has 83 appointed members including 14 women. LABOUR  LEGISLATION The inclusive Omani Labour Law issued in 2003 applies to Omani and foreign employers and employees. The law governs work contracts, wages, overtime pay, leave, work hours, industrial safety, labour disputes, vocational training, and the employment of Omani and foreign nationals. LABOR UNIONS Oman Law was amended during February 2010 to allow the formation of labor unions. There are now approximately 70 Labor Unions within the Sultanate. The law allows peaceful protests. Collective bargaining is not permitted, however there exist labor-management committees in firms with more than 50 workers. These committees are not authorized to discuss conditions of employment, including hours and wages. The Labor Welfare Board provides a venue for grievances. INFLATION As oil prices have risen to a record high, so has inflation. The government depends mostly on oil revenue, more than on tax returns from companies and other government-owned companies. The government is also Omans largest employer, so the high interest that government gets increases the prices of food and construction equipment. The government did support the fuel prices so it doesnt increase the inflation and to make the price suitable for people on low wages. The minimum wage has been changed from 120 Rials a month to 140 Rials because of high records of inflation driven by high prices of oil. In February 2011, the minimum wage was increased from 140 Rials per month to 200 Rials per month WORKWEEK The usual working week is 45 hours and generally runs from Saturday through midday on Thursday. WAGES The government lay down a minimum monthly wage of Rs.100 for unskilled Omani employees and a minimum monthly wage of Rs.150 for Secondary school pass outs. In addition, employers must pay their employees a monthly accommodation allowance of Rs.10 and a monthly transportation allowance of Rs.10. PAYROLL TAXES AND EMPLOYEE BENEFITS The Social Security Law (Royal Decree No. 72 of 1991) introduced a system of  social security to insure employees against old age, disability, death, and occupational injuries and diseases. The law currently applies only to Omanis working in the private sector. Under