Effectiveness of Sports Sponsorship

Effectiveness of Sports Sponsorship Introduction â€Å"Few marketing platforms can match the brand building opportunities offered by sports sponsorships, with the guarantee of exposure in print, broadcast and new media. In the highly emotive world of sport, the audience sees sponsorship as support for something to which they feel great attachment. An average of more than 150 million viewers watched each football match in Euro 2004, with 273 million people tuning in for the final, and in the UK, the highest audience was 20.7 million.† (Margraff, 2005) However, advertising avoidance in the UK is now reaching terminal proportions. A recent study conducted by Continental Research found that 45% of UK adults agree with the statement â€Å"Given the chance I avoid TV ads as much as I can†.. (Evans, 2006) Despite this, and the fact that consumers are spending less and less time consuming traditional media, Evans (2006) reports that lazy marketers still siphon off the majority of their budget to TV and magazines. Smarter adve rtisers, however, are devising new ways to interact with their target audience. As a result the main feature of the course of the year will undoubtedly be in June, where the World Cup will break all sponsorship records, and will be the showcase for brands to interact with their consumers like never before. Brands will attempt to emulate Pringles, which partnered Yahoo! Sports coverage during Euro 2004 to build awareness around its ‘dream team’ concept. (Evans, 2006) For sponsors, such viewing figures underline why it is so important to be associated with football tournaments and indeed any sports tournaments of magnitude. As a result, Cornwell et al (2005) have concluded that sponsorship of sports tournaments has now become a mainstream marketing communications tool. However, whereas sponsorship involves a fee paid in advance for future potential communication values, advertising offers a more knowable and more controlled communication. Furthermore, whereas sponsorship requires leveraging: promotional spending in addition to the sponsorship fee to o btain the greatest value, advertising is often sponsorships most valuable leverage. Sponsorships may also be directed toward consumers, channel members, financial institutions, government, community, and employees. As a result, in order to gauge the full effectiveness of sports sponsorship on marketing and branding, this review will review several different academic journals with varying methodologies, from empirical studies to more pure theoretical approaches, in an attempt to judge the most successful approaches The methodologies of the journals will be examined in more detail at the end of the review, and the conclusion will attempt to uncover the most effective methods used, as well as commenting upon the true value of tournament sponsorship in the context of modern marketing. Whilst the main focus of the methodology analysis will be on the contrast between the empirical, practical, studies and the more abstract, theoretical models, there may be more important analysis contained within the articles which use marketing paradigms as their dominant approach. Within the context of tournament sponsorship, the paradigm approach focuses on examining the specific thought patterns, both of the marketers designing the campaigns, and the target audience experiencing them. As a result, paradigms offer a much greater insight into the effectiveness of the tournament sponsorship than pure practical or theoretical approaches. However, a multi paradigm approach provides even greater insight, as it looks at differing thought patterns within target segments, and between marketers in the same sector, or even the same firm. This degree of complexity means that multi paradigms have not often been used in the context of tournament sponsorship, but wherever they have been encount ered, they have been identified and analysed, using the four interacting paradigms defined by Burrell and Morgan’s (1979) work on multi paradigms Literature Review Sports Sponsorship Overview Grohs et al (2004) analysed recent surveys which found that, while managers tended to favour media coverage around ten years ago, now they rate sponsor awareness and image transfer from the sponsored event to the sponsor as the main reasons for engaging in sport sponsorship.. However, the evaluation of sponsorship has not kept up with this change in priorities, and companies often seem reluctant to evaluate sponsor and spectator awareness even though measurement is straightforward and not very costly. An important reason might be that previous studies showed the unsatisfying effects of â€Å"ambush marketing†, a form of marketing where other firms make consumers believe, incorrectly, that these companies are the actual sponsors of an event. This phenomenon will be covered in more detail later in the review but, in the case of image transfer, evaluation seems to be difficult due to a lack of a compelling comprehensive and testable model Despite these concerns, corporate spending on sport sponsorship continues to escalate: up 3.7% from 2001 to 2002, with several companies reportedly spending over $100 million each year (Stotlar, 2004). Sport sponsorship has been shown in the literature to be a viable component contributing to market strategy, however of late, the downward movement in many corporate stocks through 2003, projected earnings shortfalls, and decreased company profitability has caused some shareholders to question sport sponsorship as an appropriate expenditure of funds because little empirical evidence of return on investment has been provided. However, this can be primarily viewed as being because many corporations have failed to assess sponsorships effectiveness in meeting their objectives. Perhaps the lack of assessment exists because the process for evaluation has not been solidified in theory or practice; thus an evaluation model for sport sponsorship based on the myriad of contributing factors is ne eded. Stakeholder Perspectives Cornwell et al (2001a) reports that sponsorship of sporting and other events has become an increasingly popular marketing communications vehicle. However, Cornwell et al (2001a) join the ranks of academics who claim that precious little research has investigated how sponsorship participation is beneficial to a firm and its brands. Thus their study explores how managers view the brand equity building capabilities of their sponsorship linked marketing programs over time and, in a two-phase survey, fifty managers reported on the value of sponsorships in building brand equity. Findings showed that leverage, the use of advertising and promotion to support the sponsorship, and active management involvement are significant predictors of both the perceived differentiation of the brand from its competitors and adding financial value to the brand. To put tournament sponsorship in perspective, the sponsorship of sports, causes, and events has become an established communications tool seen as useful in building brand awareness, brand image, and corporate image (Javalgi et al. 1994; McDonald 1991; Quester 1997; Turco 1995; Witcher et al. 1991). Brand awareness and image, in turn, are integral to the idea of brand equity, the set of value-adding assets linked to a brand (Aaker 1996). Both academic (Keller 1993; Park and Srinivasan 1994) and business writers confirm the role that sponsorship can play in building equity for the brand. Indeed, Keller (1993, p. 10), in his theoretical development of customer-based brand equity, notes that anything that causes the consumer to experience or be exposed to the brand has the potential to increase familiarity and awareness. Likewise, promotion industry analysts find sponsorship popular as a platform from which to build equity and gain affinity with target audiences (Smith 1996, p. 15). Empi rical work, however, concentrates on only a few brand equity elements, for example, brand awareness Sandler and Shani (1992), brand preference Nicholls and Roslow, (1994), corporate image Turco (1995), and adding financial value to the brand (Cornwell et al, 2001b). As a result, Cornwell and Maignan (1998) claim that no study has considered a broad range of equity elements, thus Cornwell et al (2001a) therefore explore the potential of sponsorship to build various aspects of brand equity, with their purpose being to develop an understanding of how managers view the brand equity building capabilities of their sponsorship-linked marketing programs. However, of concern to managers is that, whilst the sponsorship of football is a multi million pound industry, with many sponsors hoping that supporters enthusiasm for their team will translate into long term benefits for the sponsor, the intensity of team rivalry means that a sponsorship may also alienate opposing supporters. Davies et al (2006) examined the rival Glasgow clubs, Celtic and Rangers, who undertook a joint sponsorship arrangement with the communications company NTL, investigating how the benefits obtained compared to those that may have been expected from a single sponsorship. While the sponsorship was very effective in creating awareness for NTL and very profitable for the clubs; Davies et al (2006) found ambivalent attitudes towards the company, with the most committed supporters being the least accepting of the sponsorship, and the expected positive relationship between support for the club and brand preference for NTL was not found. Of course, the companies and participants are not the only stakeholders in a sponsorship deal, especially for major events. One example of this is in tobacco sponsorship of sporting events, where the opinions of government, health activists, and sport organizers towards the concept have been widely discussed and debated. This paper Danyichuk (2000) contributes a new perspective to the debate by providing input from spectators at a major sporting event obtaining four hundred spectator respondents to a paper and pencil survey at a Ladies Professional Golf Association (LPGA) event that had a tobacco company as its title sponsor. The questions elicited demographic information in addition to spectator smoking habits, awareness of title sponsor, awareness of current tobacco legislation, opinion concerning tobacco sponsorship, and suggestions for alternative sponsorship. The final results actually indicated that 73% supported tobacco sponsorship; 11 % opposed it; and the remaining 16% had n o opinion. Those opposed to tobacco sponsorship cited health implications of tobacco use, negative influence on young people, and negative aspects of tobacco promotion in general, and some spectators provided specific examples of alternative sponsors whilst the majority of others indicated that the willingness and financial interest of a potential sponsor were key elements of the sponsorship arrangement. The final interpretation of this was that, whilst it would be better to have found another sponsor, it was better to have a tobacco company than no sponsor at all. Given that events would always prefer to have a sponsor, where possible, Westerbeek (2000) tested the hypothesis that â€Å"revenue maximization of the tenants of sports facilities is dependent on the geographical location of the facility, or the ‘location of distribution’†. To test this hypothesis, revenue maximization was operationalised pertaining to sponsorship, and a survey instrument was sent to all sponsors of a Melbourne based football club. The sponsors were grouped as location dependent and location independent based on the location of their head office and financial turnover achieved in the area around the sports facility. The survey thus collected information on three different steps in the sports consumption process including ‘coming to the sports facility’, ‘being in and around the sports facility’ and ‘being serviced in the sports facility, and found that revenue was geographically dependent when the sponsor was simil arly location dependent. Finally, Payne (1998) conducted a study into the practice of â€Å"ambush marketing†, and its effect on stakeholder, using the example of The Olympic Games which, as the world’s largest and most prestigious sports event, has been a major target for ambush marketing activity. The position of the International Olympic Committee is that the practice of ambush marketing represents a deliberate attempt to mislead consumers into believing that the companies involved are supporters of the Olympic Games. However, it was found that the effects were most marked on the other stakeholders: the activities of ambushers were found to erode the integrity of major events and lessen the benefits to official sponsors, who are the real supporters of such events. Ambush marketing has been criticised heavily as it breaches one of the fundamental tenets of business activity, namely, truth in advertising and business communications. As a result, the IOC, as custodian of the Olympic Games, succ essfully adopts a twofold strategy of protection and prevention to counter the threat of ambush marketing. Integrating the marketing approach Statistics show that sponsorship of sports and other events is one of the fastest growing areas of promotion, despite the fact that the importance of this persuasion strategy is not reflected in the amount of attention it has received in the marketing literature. Although some research has been done in this area, the majority of work has not employed the same theoretical and methodological rigor given other areas of consumer behaviour. Some scholars, such as McDaniel (1999) have suggested that sponsorship functions like celebrity endorsement advertising, where the perceived match, or mismatch, of brand attributes with the endorsers attributes influences consumer response to such marketing communications, and the marketing mix as a whole. However, one of the most difficult challenges for marketers remains the large, diverse means of communication and communication options that are available to support their brands: TV, print, and interactive advertising; trade and consumer promotions; arts, sports, and cause sponsorships; etc. Consequently, marketers must understand what various marketing communication options have to offer and how they should be combined to optimize their marketing communications programs. Towards that goal, Keller et al (2001) considered how to develop, implement, and evaluate an integrated marketing communication program, including event sponsorship. To provide both macro perspectives, especially relevant for managerial planning, and micro perspectives; they provided criteria as to how integrated marketing communication programs can be designed and evaluated as a whole, i.e. according to coverage, contribution, commonality, complementarities, robustness, and cost considerations. They also described how the two perspectives relate and conclude by discussing theoretical and managerial implications and outlining future research directions. The competitive strategy literature seems to offer two principal approaches to the problems of developing marketing strategy in volatile environments, labelled as the formal and informal approaches by Wilson (1999).. More recent research into managerial cognition provides promising possibilities for integrating formal and informal approaches to understanding strategy development in volatile conditions, and exploratory research by Wilson (1999) has shown that, in practice and in contrast to much of the strategic marketing literature, the response of organizations in volatile environments depends fundamentally on how the managers involved perceive their environment and that managerial perception can vary considerably between, and even within, rival organizations facing ostensibly similar environments. As a result, the effectiveness of an organizations strategy can depend crucially on these managerial perceptions, or paradigms, and that it may be more realistic to regard competitive str ategy as an organization’s response to the perception of competitive ‘threat’, rather than the more popular emphasis on ‘opportunity’; thus sponsorship is often undertaken as a response to a competitor pursuing a similar strategy, and reaping perceived benefits. Finally, although the importance of signs and symbols has been widely recognized in an integrated marketing approach, only a handful of consumer researchers have developed theory and research programs based on semiotics, the doctrine of signs. Mick (1986) outlined the emergence and principal perspectives of semiotics and then discussed its applications and implications for consumer research and marketing strategy Among its strengths, semiotics positions meaning at the nucleus of consumer behaviour, provides a rich ‘meta-language’ for semiotic consumer research, and recommends a multi-paradigm philosophy of marketing which can be applied to the effective integration of sponsorship into a wide ranging marketing strategy. Evaluating Effectiveness The use of sales figures, traditionally used to measure marketing effectiveness, as an indicator of sponsorship effectiveness is highly problematic in consequence of the possible influences of collateral marketing communications inputs, carry-over effects of past advertising, changing economic conditions, entry or exit of competing businesses, and so on. Hence, the results of sponsorship are typically appraised in terms of awareness levels achieved; attitudes created or altered; prompted and unprompted brand or company name recall; the extents of television, radio and press coverage, and cost per thousand prospects. (Bennett, 1999) A common approach is to measure the duration of television coverage of a sponsored event and the magnitude of press coverage obtained in terms of single column inches and then to compute the cost of purchasing corresponding amounts of space or broadcast time (Allen, 1990). This is convenient and practicable, but only indicates the extent of the publicity r esulting from sponsorship, rather than the impact and effects of the exposure (Meenaghan, 1991). Meenaghan (1991) in fact recommends a three-fold evaluation procedure: determination of a companys present position in terms of pre-sponsorship awareness and image with the target audience; tracking to detect movements in customer attitudes towards the firm; and the post-sponsorship comparison of performance levels against initial objectives. A number of theorists, primarily Thwaites (1995), have advocated the use of tracking devices to monitor sponsorship effectiveness, however Marshall and Cook (1992) found that although 78 per cent of a sample of 58 UK sponsoring companies evaluated their investments in some way or other, very few of them actually undertook specialised tracking. Allen (1990) similarly reported evidence to suggest that only a small number of companies completed any formal evaluation of their sponsorship expenditure, or engaged in any research whatsoever designed to identify the likely interests of target customers. The survey conducted by Thwaites (1995) found that while two-thirds of a sample of 30 companies sponsoring UK football teams attempted to evaluate their sponsorship activities, few went beyond the basic measurement of media coverage, and generally unsophisticated methods seemed to be applied. Reasons advanced by managers for not evaluating sponsorship effectiveness included the costs and uncertainties involved, technical research difficulties, absence of meaningful criteria for assessment, and lack of clear initial objectives (Allen, 1990; Thwaites, 1995). As a result, Bennett (1999), suggested that a sponsoring companys ability to create false consensus among spectators represents a concrete and useful device for measuring the effectiveness of sponsorship activities. In the absence of an external measure of validity of sports advertising effectiveness, alternative measures are often utilized. For example, John Hancock Financial Services measures the effectiveness of its bowl sponsorship by the number of stories and lineage in newspapers and magazines across the country (McCarthy 1991). For the 1990 ‘John Hancock Bowl’, an American football collegiate championship, 21 binders of newspaper clippings were collected, whose value the insurance company estimated at over $1 million of advertising equivalency. Another approach used by event sponsors is to compare sales in periods before and after the sponsored event, however such surrogate measures give no evidence of the size of the audience exposed to the promotion. Furthermore, Levin 1993), claims that measures such as these are incomplete because they do not tell â€Å"how event marketing shapes consumer awareness, attitudes and impressions of a company or its brands†.. It is possible to have on-site audience research that goes beyond mere number counting and studies consumer attitudes, interests, and opinions (AIO). For example, statisticians, including Sudman (1980), have developed techniques to make place-based media surveys conform to traditional norms Research has also demonstrated that audiences at particular events have varied demographic and lifestyle characteristics, as well as distinct AIO (Nicholls, Laskey, and Roslow 1992). This finding makes certain events more attractive to some sponsors than others. For instance, Nicholls and Roslow (1994) found that the Maryland Gold Cup steeplechase attracts spectators targeted by the local Mercedes-Benz dealers, whereas those attending the Indy CART automobile race in Miami have characteristics sought by Nissan. Even though Mercedes-Benz and Nissan understand the importance of demographics, lifestyles, and AIO, the impact of sponsorship and advertising in place-based media is still enigmatic. Where it is possible to make purchases on-site, sales measures are available and, moreover, can be related to the characteristics of customers. For instance, individuals who purchase particular items at a supermarket may be tracked by specialized Nielsen and IRI databases. (Nicholls and Roslow, 1994) In general, however, advertising effectiveness measures are not available for audiences at most place based sites, including sports events, unless they are specially commissioned. Thus, Nicholls and Roslow (1994) were most concerned with methods of measuring the advertising effectiveness of a specific sports event Traditional measures of effectiveness, beyond actual sales, include advertising exposure, consumer attitudes, brand recall, and purchase intentions, and Nicholls and Roslow (1994) collected and an alyzed brand preference on sponsor brands promoted at a professional golf tournament in order to build a model of sponsorship effectiveness. Examples from Specific Genres â€Å"Action sports†, an emerging genre of individualistic sports, increased immensely in popularity over the end of the last century (Bennett et al, 2002). Sponsorship of action sports events has likewise increased rapidly over the last few years, and these sponsorships are prevalent on most televised event broadcasts. Bennett et al’s (2002) research suggested that there is an expansive and increasing action sports industry and several major corporate sponsors have uncovered the benefits of advertising on ESPN, NBC, and others. Advertising research is replete with examples of utilizing intermediate measures to assess sponsorship effectiveness, and the literature base on intermediate measures in sport marketing has now been well established by the authors listed above, and has provided sport marketing and management practitioners with useful data on intermediate measures utilized by the LPGA, Olympic Games, and Gay Games, respectively. However, despite the development o f literature on sponsorship effectiveness within the sport industry, there is a relative paucity of original research on the action sports phenomenon. As such, Bennett and Lachowetz (2004) discussed the attractiveness of the action sports genre to the ‘Generation Y’ market, claiming that action sports events may increase in popularity even further over the next few years. Since action sports were founded by individuals seeking to be involved in participant-controlled sports, the genre will likely continue to have some mass appeal for the members of ‘Generation Y’, and therefore many companies and marketers will seek to benefit from the transfer of brand associations resulting from the firms aligning themselves with the events and athletes that appeal to the youth segment. Certainly, there are valuable lessons for all sports sponsorship marketing practitioners that can be learned from the substantial growth of the action sports industry, and since there has been such a dramatic rise in the popularity and strength of the genre, practitioners should analyze the efforts made by those responsible for expanding the industry. Obtaining sponsors that appeal to targeted markets or have the capability of transferring images is another objective that has been utilized by action sports marketers and managers, and marketers should consider being authentic or creating a cool image when attempting to influence the youth market, especially one so large and filled with cynicism toward corporate sponsorship. As such, Bennett and Lachowetz (2004) concluded that choosing sponsors that can deliver on authenticity rather than simply provide a revenue stream may allow greater return on investment in the future for those targeting ‘Generation Y’ Moving to looking at a more mature genre, certain professional sport organisations fall short of educating their corporate clients with respect to all of the benefits and attributes of the sport products they offer, including sponsorship programs, luxury suites and event sponsorship(Lachowetz et al, 2003). In response to this problem, theorists have developed a nine-step framework: â€Å"eduselling,† that identifies corporate sales activities designed to assist professional sport franchises in the education and retention of their corporate customers. Lachowetz et al. (2003) surveyed all 29 teams in the National Basketball Association (NBA) in an attempt to validate the nine-step process, with the purpose of the study being to collect more detailed information about the sales activities used by NBA franchises. As a follow up to the study, marketing directors were selected from five NBA franchises, with selection criteria including average to below-average team winning percentag e and average to above-average corporate customer retention rates, which indicated an effective corporate sales strategy. Methodology Theoretical Models A great deal of fieldwork has attempted to gauge the relative effectiveness of sponsorship in a marketing context, but theorists such as Cornwell et al (2005) claim that these â€Å"weakly controlled field studies contribute little to our understanding of how individuals process sponsorship-linked marketing communications.† By considering qualitative factors, including possible underlying information processing mechanics, individual and group level factors, market factors, and management factors, together with theorized sponsorship outcomes, Cornwell et al (2005) thus offers a theoretical model of consumer focused sponsorship linked marketing communications that summarizes and extends theoretical understanding of the topic. Grohs et al (2004) in contrast, examined these obstacles of assessing sponsor awareness and image transfer in sport sponsorships in two ways. Firstly, as a means of reducing the danger of ambush marketing, they analysed a qualitative model designed to identify what drives correct sponsor identification. Their empirical results, collected to test the model, indicated that event sponsor fit, event involvement, and exposure are the dominant factors predicting sponsor recall, thus offering sponsors a basis for successful sponsorship planning and execution through the selection of an appropriate sponsorship. Secondly, Grohs et al (2004) proposed and empirically tested a quantitative model that assesses image transfer in sport sponsorships, finding support for a basic level of image transfer for all sponsors. However, more detailed research and interpretation of results suggest that the magnitude of image transfer depended on two factors: sponsorship leverage and event sponsor fit. The other main theoretical pieces of work were conducted by Keller (2001) and Wilson (1999). Keller (2001) aimed specifically to provide micro perspectives especially relevant for academic research, and in order to achieve this, they introduced the Marketing Communication Tetrahedron, a quantitative model, as a marketing paradigm approach, as well as a means of classifying and analyzing factors influencing marketing communication effectiveness along four broad dimensions, i.e. factors related to the consumer, communication, response, and situation. In contrast, Wilson et al built a model based on research that suggested that organizations seem to respond initially to the perception of competitive threat by reinforcing previous behaviour patterns before later and often reluctantly adopting more innovative reforms, implying a cyclical pattern of paradigm adjustment. Implications for further research and for management practice are discussed including the need for multi paradigm models, to compensate for said cyclical behaviour. Survey, Questionnaire and Empirical Data Oriented One of the major quantitative, practical pieces of work on the subject was the on site survey conducted by Nicholls and Roslow (1994) at the Doral-Ryder Open Golf Tournament in 1992. At the time, this was a major Professional Golf Association (PGA) championship, held each year at the Doral Country Club in Miami, Florida, with the principal sponsor, Ryder System, being a major vehicle leasing corporation, headquartered in the United States, but with numerous operations abroad. Nine major sponsors were included in the analysis, and the survey was conducted on each of the four days of the actual professional tournament. The championship itself was preceded by several days of pro-am rounds and a musical evening so that the whole affair extended over ten days, and respondents were interviewed as the tournament progressed. Each of the interviewers was assigned to a specific location on the golf course and a total sample of 276 respondents was obtained during the final four days of tournament play. Interviewers were instructed to select the first person to cross a given point following the conclusion of each interview, and this procedure was found to have reduced bias with respect to the interviewer selection of the respondents. Respondents were asked their specific brand preference in the categories included in the study, and the analysis investigated whether the preference for advertiser sponsored brands was related to the number of days attended. Nicholls and Roslow’s (1994) stated aim was to establish whether there was any empirical relationship between spectators’ degree of preference for brands advertised on-site and the number of days these spectators attended the tournament, i.e. the number of advertising messages directed to the events audience. Their findings provided a link betw een the degree of brand exposure and the degree of preference however, despite the large number of respondents interviewed, the link was found to be equivocal at best. A more decisive piece of practical work was completed by Bennett et al (2002) who, after concluding that their literature review revealed no significant research involving sponsorship and action sports, undertook an investigation of the effectiveness of action sports sponsorships.. They claimed that such a study was both warranted and timely; and thus composed an original 19 item questionnaire in order to measure action sports sponsor and athlete recognition by members of the ‘Generation Y’ market. The results from these questionnaires were crucial in forming their conclusions about targeting younger people. Similarly, as part of their work, Lachowetz et al (2003) interviewed numerous individuals by means of a 45-60 minute phone interview. Data from these calls was qualitatively a

International Politics Essay

The ongoing violence between the indigenous communities of Peru on the one hand and the government on the other has been cited as the one of the country’s worst political crises. For a considerable period, the communities have not only expressed their opposition against the government, but have also engaged in acts of civil disobedience in the recent past. In June this year, confrontations between indigenous protestors and the state police left nearly a hundred people dead and hundreds injured, the majority of the casualties and fatalities being civilians (Romero, 2009). This followed a government decision to end the massive demonstrations by launching an aggressive military campaign against those protesting on the country’s roads. In essence, the communities’ initiative of holding peaceful demonstration so as to protest against the exploitation of the Amazon rain forest, and the deliberate government efforts to counter such protests can be described as a global crisis precipitated by the unprecedented struggle to exploit the few natural resources available in the environment. Though the conflict is occurring at the national level, its effects will inevitably be felt at the international front, considering the central position of the Amazon as a focal biodiversity epicenter. Globalization has been defined as the process of blending or homogenization by which individuals and organizations of the world are unified into one society and work together without restrictions, through a combination of economical, technological, socio-cultural and political forces. It also entails the reduction or elimination of enforced restrictions of countries on international exchanges hence increasing integrated and complex global system of production and exchange (Christian, 2002). Indeed, globalization has served to shape the world economy. Individual economies which were originally isolated from each other are currently being influenced by the each other’s actions, as well as policies and circumstances in the global markets, which in turn assist them to devise their own policy measures. One of the characterizing attributes of globalization is the process of merging and integrating the economies of world economies. Over the past half century, the western countries, and particularly United States and Europe have been vocal in the establishment of a global market economy characterized by the free flow of people and capital, and free trade. However, a skeptical view depicts global integration as only beneficial to the developed world, but harmful to poor nations, the environment as well as native populations. In the face of many, the process is increasingly worsening the global environmental crisis that has prevailed with the intensification of industrialization (Christian, 2002). From a practical point of view, this appears to be the case in Amazon basin of Peru. In April 2006, the United States and Peruvian governments signed a Free Trade Agreement intended to foster bilateral trade between the two countries. Even at its outset, the agreement was heavily criticized by environmental organizations, citing potential environmental and labor concerns. The FTA became effective in February this year, and precipitated a number changes in Peru’s law so as to facilitate increased access to the Amazon forest (Cabello, 2009). Although the Peruvian Congress approved the initiation of such legislative changes, the indigenous people living in the expansive Amazon region were not consulted, thus contravening the 169th convention of the International Labor Organization. Describing the regulations as a deliberate move to invite foreign companies to exploit the natural resources within the forest zones, the native communities held massive protests in August 2008. Subsequently, the Congress was forced to repeal two of the laws, and additionally pledged to reexamine the others. The apparent failure to abide by the promise eventually led to an eruption of renewed protests starting April 2009. Since then, they have been remained persistent in advancing their cause: that the legislative provisions which inevitably undermine their land and water rights have to be abolished (Romero, 2009). Central in the current conflict between the indigenous people and the Peruvian government is the controversy surrounding the idea of allowing multinational oil corporations, particularly those of American origin, to explore as well as mine oil and other mineral resources in the Amazon under the 2006 agreement (Romero, 2009). From a basic point of view, the physical clashes represent the conflicting interests between these two parties. On the one hand, the government led by President Garcia purports to exploit the natural resources in the Amazon in order to bring economic wealth for all citizens. Notably, the potential geographical zones to be explored for their oil and gas deposits cover about seventy two percent of the country’s rain forests (Chauvin, 2009). Similarly, the government also intends to open up the water resources and forest lands to other economic activities such as large-scale farming and extensive mining explorations. From the side of the incumbency, such a move should not elicit any local opposition, considering that the government’s ownership of all subsoil rights. The exploration of these vast lands by multinational corporations would definitely accrue immense economic wealth. On the other hand, the indigenous people see the move as a threat to their ancestral land, their own security, and the environment in general. This is so considering the fact that the mineral exploration initiatives could end up affecting more than thirty thousand natives spread across six of Peru’s provinces (Chauvin, 2009). An estimated 50 percent of Peru is covered by the Amazon rain forest, which houses more than sixty ethnic groups. In the recent past however, the Amazon region has attracted numerous oil, gas, and other mining corporations with the objective of exploring the natural resources found within the forest. Since 2005 for instance, the regions selected for gas and oil concessions have significantly increased (from an estimated fifteen to seventy percent) (Cabello, 2009). Early this year, the country’s oil licensing organization signed contracts with several multinational oil corporations, permitting them to explore natural resources in the Amazon. Although such initiatives will promote economic growth in the country, a critical observation reveals the activities of these international companies jeopardize the very existence of the Amazon, which is widely recognized as an important center of biodiversity, even at the global front. Indeed, the Amazon Basin is an extremely important resource especially when we consider international issues such as the realities of environmental pollution and global warming. Generating close to twenty percent of the earth’s fresh water, the basin is home to numerous indigenous Peruvian communities. Despite their continued habitation of the forest regions for many years, the natural resources have been well-preserved, thus promoting environmental sustainability. Additionally, the Amazon has been cited as vital in the regulation of atmospheric emissions, particularly carbon dioxide responsible for environmental pollution, besides stabilizing rainfall and guarding against desertification (Chauvin, 2009). Seen in this sense, Amazon has served to mitigate the devastating impacts of climate change that are often associated with global warming. Recent government reports highlight continued overlap between the concession lands (those designated for hydrocarbon extraction) and the natural protected areas occupied by the indigenous population (Chauvin, 2009). United States’ oil companies such as Burlington and Hunt Oil are currently mining fossil fuels in areas that were traditionally reserved as natural lands. With no hope of a possible retreat of the current trends, the indigenous Peruvians continue to face numerous environmental problems including soil and water pollution, which in turn impacts negatively on their health. In essence, continued investment in the Amazon rainforest appears to contradict what world nations, including the U. S. nd Peru postulate as viable strategies of mitigating the currently witnessed global climate change. It is apparent that the continued extraction and transportation of fossil fuels will lead to an unprecedented release of toxic materials into the soil and increasing the percentage of greenhouse emissions in the atmosphere. Additionally, these multinational companies are also contributing to deforestation via the establishment of infrastructures such as roads and oil pipelines. It is indeed ironical that bilateral and international agreements such as the one between the U. S. nd Peru could actually end up fueling the global climate crisis and threatening the very livelihoods of indigenous populations, rather than initiating measures towards its alleviation and encouraging sustainable development. It is questionable that the Peruvian government should take advantage of the natives who lack title deeds and therefore direct claims to the land they have lived in for many years. Instead of focusing on the immediate economic benefits, the government ought to consider the potential harm to the Amazon Basin, as well as the life it has supported for a prolonged duration.

Iban Marriage

A young man may marry at the age of twenty-two, if he is the only child in the family. If he has brothers or sisters, he is likely to marry when he grows older. A girl usually marries at the age of eighteen. At these ages young men and women generally know how to support themselves. If a young man wants to marry he may tell his parents, so that they may choose the daughter of one of their close relatives for him. If he wishes to marry a particular girl, he may tell them so, so that they may think about it in making a final decision.If they agree to their son’s choice, they will send word regarding their intention to the girl’s parents. If the boy’s request is acceptable to the parents of the girl, then the latter may fix a day for nanya bini, when they can discuss formally the rules they will follow at the wedding of their children. A day or two prior to nanya bini, the young man’s parents will inform their relatives about the coming wedding of their son t o the girl he loves.They also request that three men and three women who are very closely related to them join them in meeting and discussing the coming marriage with the girl’s parents on the nanya bini day. The nanya bini meeting between parents of the future bride and the bridegroom may take place either during the day or at night. If it is held during the day, the young man’s parents and relatives will come early to the girl’s room. On their arrival the men are asked to take a seat on the mats which have been spread for this purpose along the girl’s family’s upper gallery, while the women are invited to take a seat in the family room.At about 10 a. m. , after the visitors have been entertained with drinks, the girl’s father calls all the people of the longhouse and his relatives who have arrived from other villages to gather at his lower gallery in order to hear his discussion with his visitors. After the people have taken their seats th e parents of the bride and the bridegroom inform their friends arid relatives that they have agreed that their son and their daughter should be married if the bridegroom’s parents agree to the payment of adat nikah (marriage price) demanded by the bride’s parents as follows: 1.A bride’s wealth of $100 to $300, depending upon the family background of the bride-to-be, and lower than $100 if she is of low birth. 2. A sigi alas muda, $4. 00, to sigi rusa, $8. 00, of bunga pinang (ceremonial wedding fee), and sigi jabir, $1. 00, to sigi panding, $2. 00 again, if the bride is of low birth. 3. One medium size brass gun (bedil) for batang pinang and one bendai gong for tandan pinang if the bride and the bridegroom are of distinguished families. People of common background would not demand the batang and tandan pinang presents from the bridegroom’s family.If the bridegroom’s parents agree to pay the marriage price, then a genealogist (tukang tusut) will rec ite the bride’s and the bridegroom’s family trees to see whether the marriage is incestuous or not. Incestuous means in this connection that the couple is kin of different generations. If their union is incestuous to this sense then the bridal parents should inform the Penghulu (district chief) that the coming marriage ceremony of their children will be celebrated with besapat ka ai or bekalih di darat depending on the category of the incest as discussed earlier (cf, pp. 29-30).At the end of the discussion of nanya bini, the groom’s parents leave a silver girdle (lampit) with the bride as a deposit to bind their promise. A day is then set for the melah pinang or marriage ceremony which must be held within three months. If it is an incestuous marriage, it must be held as soon as possible after the besapat ka ai or bekalih di darat ceremonies in order to avoid kudi (disaster). A few days after this, the groom’s parents will gather the people of their longho use to inform them that their son’s marriage has been agreed upon in discussion with the future bride’s parents.The groom’s father also tells them of the day agreed upon for the wedding festival. From this time onwards the groom’s family starts to make cakes and accumulates the derian fees. The marriage festival (melah pinang) is held in the bride’s house. About one week before the Melah Pinang festival is held, the groom’s parents again call all the people in their longhouse to meet at their gallery as they are to send the belanja (expenses) to the bride’s parents. At this meeting each family in the longhouse presents whatever money its members have agreed to con-tribute to finance the feast.After the groom’s parents have sent their belanja for the Melah Pinang feast, the girl’s parents will begin to pound rice, brew jars of tuak wine, and buy the necessary bulls, pigs and drinks for the oc ¬casion. Four to five days before the ceremony, the girl’s parents call for a meeting of people on their house gallery. At this meeting, the girl’s father enquires from the heads of each family whether they have finished making preparations for the ceremony. If all preparations have been made, then the bride’s father will inform the people of how many neighboring longhouses he intends to invite to the feast.The people of other families in the longhouse will naturally agree to this and one man is sent to invite the guests upriver while another man is sent downriver. The two men inform the guests to come to the wedding festival early that day so that their reception can be properly perfor ¬med. By this point the agreement to marry is considered binding on both par ¬ties, and compensation must be paid if either wishes to break the agreement. 1. If a young man makes a promise to discuss his marriage with a girl’s parents and fails to do so according to his promise, he is fined sigi jabir, $1. 0, and sigi panding, $2. 00, for the cost of pinang sirih wasted by the parents of the girl. If he refuses to pay the fine, the case is brought to the court of the Penghulu for further hearing. 2. If a bridegroom fails to marry his bride after the melah pinang day has been fixed, through no fault of the later, the former is fined sigi panding, $2. 00, and sigi alas, $4. 00, respectively, the later for the cost of wasted pinang sirih. If the bridegroom refuses to pay the fine, the case is brought to the Penghulu’s court for further judgment.

Making A Business Decision For Any Ceo Essay - 1130 Words

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