Sweet Basil Marketing Plan

In order to Increase market share and sales, Sweet Basil will target dine-in, take-out, and take-n-bake pizza lovers In the cities of Treated, Rewind, USA, and Monrovia. The strategies for increasing sales are to first penetrate new markets, then increase usage and size of customer orders. This will be conducted through unbeatable value and the finest ingredients that cannot be received anywhere else in the area. The marketing mix for Sweet Basil will consist of mobile marketing, flyer distribution, a website, social media outlets, television advertising and email newsletters.The objectives for many of these avenues are to provide coupons and discounts as well as gain consumer loyalty. The business does a great Job already with returning patrons so it is time to focus energy on effectively penetrating new markets. Sweet Basil will look to Increase sales by 40% or $110,400 and achieve a market share of 30% In Treated and 20% In the surrounding clues. This will ensure success and will provide a break even before the first 6 months. 2. 0 Situation Analysis Currently, the economic market condition in the united States and California is primarily recession.Overall, the pizza business is doing k. Tit flat sales of about $38 billion for the past 3 years (Kara 2011). Consumers are becoming much more particular when it comes to value and where they spend their hard earned money. Sweet Basil pizzeria is doing quite well during the recession but it is having trouble inquiring new consumers. Prices of flour, produce, and cheese are on the rise so It Is important to Increase business and revenue to cover these associated costs. These forces are uncontrollable In the macro environment along with the rising unemployment from the recession.It is important to instill value and personalized maintain/increase repeat customers. There are many successful dine-in and take- out pizza companies that fail to provide the opportunity for consumers to purchase take-n-bake pizzas. Consumer s are going to ultimately purchase from the establishment that provides the best value and quality mixture. Sweet Basil offers dine-in, take-out, and take-n-bake pizzas, leaving the delivery market to competitors. With this in mind, Sweet Basil is very capable of increasing sales with the development of take-n-bake pizzas and a solid marketing strategy. 2. Market Summary Sweet Basil Pizzeria is an extremely reputable pizzeria in the city of Treated, California. Besides being well known, Sweet Basil also maintains a strong competitive advantage with its owner, James Decrease, being a hotel restaurant management graduate from Purdue University and restaurant industry veteran for well over 25 years. James has been able to carefully select his target market due to his extensive industry experience. As mentioned before, the current pizza market is motionless at around $38 billion per year, which isn't so bad considering worldwide market conditions.Many loyal customers have been moving du e to rising foreclosure rates and this hurts return business. An astonishing 93% of Americans eat pizza at least once a month and approximately 3 billion pizzas are sold every year (Hinkle 2009). This leaves plenty of room for competition and growth for Sweet Basil take-n-bake pizzas in the current market. Even though Sweet Basil's target market demographics is tailored to consumers in the San Gabriel Valley and surrounding areas in southern California, we reserve the right to increase the area if growth is substantial.The average salary of southern California Jobs is $55,000 a year (Simply Hired 2011), which leaves plenty disposable income for the on-the-go working class individual. Many consumers in southern California lead extremely busy lifestyles, which makes it hard to cook for a family. There are currently seven pizza restaurants/parlors in Treated, California. None of these pizza establishments offer take-n-bake pizzas for sale, so the only real competition is frozen pizzas at the super market. Our consumers enjoy high quality pizza with fresh ingredients at an affordable price.This provides incredible value to the customer and a much better alternative to people having to bake store bought frozen pizzas. Sweet Basil provides its customers with an extensive value for their hard earned none. Consumers choose Sweet Basil pizza because we serve their needs through our unique ingredients and fresh homemade sauce and dough. People want more than Just a bland, regular tasting pizza and we tailor our unique blend of basil, garlic, and oregano to pizza lovers throughout the Los Angels area.Sweet Basil serves over 10 different types of specialty pizzas creating enjoyment for all types of palettes. Our pizza can be picked up with no wait and is never sold unless it has been made within 7 days to increase the quality that you'll find in the frozen section of the super markets. Since no other pizza establishments in Treated offer take-n-bake style pizzas, we will be able to control the market for consumers that are looking for a fresh alternative. Nearly every single frozen pizza brand from Disgorging to Stouffer increased it's sales in the 52 weeks between summer 2009-2010 (BIB International 2010).Disgorging made the most out of the entire top 10 frozen pizzas in 2010 Digestion's sales throughout the world, it's important to notice that they increased sales from 2009 to 2010 and that the market doesn't show any signs of decreasing. Pizza is an American tradition that most people love to eat and Sweet Basil's quality ND delicious ingredients create the competitive advantage. 2. 2 SOOT Analysis * Strengths: Sweet Basil's strengths consist of a number of things currently going into the take-n-bake market.For one, Sweet Basil is the only pizzeria that currently offers take-n-bake pizzas; the competition is very minimal other than store bought frozen pizzas. Second, Sweet Basil has a stellar reputation amongst the surrounding community, catering to schools and businesses reaching new customers daily. Sweet Basil only uses the freshest ingredients and everything is homemade including the bread and delicious sauce. The pizzeria is located in a prime location, right next too Seven-Eleven, getting optimal exposure from the public. Weaknesses: Currently there are a couple of solid weaknesses that can cause some undesired hurdles for Sweet Basil's take-n-bake pizzas. First off, Sweet Basil has not done any marketing yet for the new take-n-bake concept and all of the marketing in the past has been through word of mouth solely. Another weakness is that consumers are already familiar with the competition and that could make it very difficult to market to consumers that haven't tried Sweet Basil pizza before. Finally, Sweet Basil pizzeria doesn't have any distribution outlets other than the restaurant located in the city of Treated and delivery is not offered.These issues certainly need to be addressed and solved so that they don't affect Sweet Basil pizzeria negatively. * Opportunities: While pizza continues to be popular in America, it is evolving. Fierce discounting and coupling by top players has squeezed other pizza Sellers (Kara 2011). This leaves a great opportunity for Sweet Basil to offer coupons and discounts through a variety of medias and advertising. Another opportunity is that the market appears to be very teddy for take-n-bake/frozen pizza purchases. This can certainly provide Sweet Basil with a chance to reap some of the market share with its high quality, affordable pizzas.Second, Sweet Basil's take-n-bake pizzas don't use up any additional resources or time than their freshly made take-out or dine-in pizzas, making start up costs insignificant. One possibility in the future could be to contract with grocery store chains to offer frozen pizzas more conveniently to consumers. Sweet Basil can increase revenue by attracting customers that don't live close to the pizzeria or prefer o make pizzas a t their own home. * Threats: Potential threats for Sweet Basil include possible competition from neighboring pizzerias in the area should they decide to start a take-n-bake operation.Another possible threat could be an increase in direct and indirect costs such as electricity for freezing the take-n-bake pizzas. An increase in gas prices could also be a possible threat for sales of pizza because consumers may not be willing to drive to the pizzeria. An increase in labor costs due to the slightly complex routine behind making take-n-bake pizzas ready for customers. 2. Competition As briefly stated earlier, there are currently 5 other pizza restaurants in Treated and we compete for pizza loving customers on a regular basis.These competitors great sum of customers that can be earned with the proper marketing campaign. The seven places to get pizza in Treated are Pizza Hut, Domino's, Hungry Hosier's Pizza, Treated Pizza Co. , Little Caesar, Flying Pizza, and Cost (which is Sweet Basil's only real take-n-bake competition other than grocery store brands). People can purchase freshly made pizza to order at all of these establishments, but these competitors eave not developed a take-n-bake concept yet. This leaves the market wide open for Sweet Basil to compete with better-known chains such as Cost and grocery store brands.The seven pizza establishments in Treated do not pose as much threat to Sweet Basil's Take-n-Bake pizzas as the store bought brands and Cost pizza. When considering true competition it is important to observe the characteristics of the take- n-bake pizza that Sweet Basil will offer. The pizzas are going to be 16†³ in length, which is fairly large for take-n-bake pizza. This means that single-serve frozen pizza sonnets really pose a significant threat because we are marketing to larger parties and families who are constantly on the go. Sweet Basil's large 14†³ pizzas will come with a variety of toppings.With this in mind the only store boug ht competitors that are offered at nearly all super markets are Disgorging, Tombstone, Red Baron, California Pizza Kitchen, Freshest, and Tony's (BIB International 2011) in order of popularity/sales. The other main competitor that Sweet Basil has to beware of that is gaining popularity is Cost's take-n-bake frozen pizzas because they offer more rationalized service and quality than the other brands. Cost pizzas are also larger in size (16†³) and cost a little more than the other brands (Cost 2011). 2. Product Offering The new product offering of Sweet Basil Pizzeria is very concise and direct. The take-n-bake pizzas will only be offered in the 14†³ size and will consist of only five different varieties such as pepperoni pizza, cheese pizza, vegetarian pizza, Sweet Basil Favorite (all combo toppings), and BBC pizza. All of these pizzas are made with the finest local produce from Mike's Foods and ingredients provided from JACM DOD service distribution. Sweet Basil Pizza will be extremely fresh, having been made within a week from the date of purchase.Customers can feel assured they are getting a high-quality pizza with greater freshness than any other brand currently in the target market. Valued consumers will also be able to call in orders if they require special toppings or especially large orders. Consumers will also be able to purchase packets of our most popular ingredient â€Å"Sweet Basil†, which is a combination of secret spices containing garlic and basil. This mixture is absolutely delicious and makes any pizza caste even better than it normally would. 2. Keys to Success The major factors that will make Sweet Basil a huge success among the competition in the Los Angels area is our stellar personalized service, finest ingredients, competitive price, and homemade sauce/dough recipe. Personalized service and quality/recipes are the main advantages that Sweet Basil Pizzeria is aiming to use as their competitive advantage. Sweet Basil alrea dy has a considerable customer dimension from its fourteen years of success and this must keeping up to date with ingredient costs, researching local stores and purveyors to ampere value/price mixtures.According to the National Restaurant Association, the top trend right now is locally grown produce (Stevenson 2010). Sweet Basil only purchases the finest, locally grown produce from Mike's Foods in Treated. The new take-n-bake product that sweet basil offers is no more expensive than providing it's everyday to-go pizzas to valued customers. This makes the overall product cost extremely low and creates a major factor in the success of this new idea for Sweet Basil Pizza. The pizza and restaurant business is a difficult industry to tackle; product/industry knowledge is a necessity to succeed.Sweet Basil is always staying familiar and up to date with current practices in order to remain competitive. This factor is something that Sweet Basil will surely continue to practice and exploit. Continued customer satisfaction is a concept that Sweet Basil will continue to present to its valued patrons. 2. 6. Critical Issues As a pre-established company, Sweet Basil maintains an exceptional product, gaining return customers and recognition daily. The major critical issues for Sweet Basil is to: * Gain market exposure- Sweet Basil doesn't currently spend any money on marketing to Treated or its surrounding cities.Word of mouth from satisfied customers is a great type of free marketing but it doesn't increase quickly enough. Sweet Basil will now be able to offer a product to customers that live further away; therefore, it should target more customers using different avenues of marketing. Train additional staff- training is a 2-3 month period depending on the speed of the employee and this could slow the business down if not forecasted properly. Since Sweet Basil doesn't deliver, it is currently run with no more than 2 employees at a time.If customers and sales increase signif icantly, sustainability will rely on the ark force. New hiring measure may be needed. * Monitoring quality assurance and customer service- the pizzeria must maintain a reputable amount of quality and service in order to ensure that the growth strategy doesn't Jeopardize the current benchmark. Quality will be monitored by gaining feedback from customers and allowing them to offer suggestions through questionnaires. * Expansion- expanding through the creation of additional parlors in Dearth's surrounding cities may be a necessity if it proves both profitable and sustainable.This is more off long-term critical issue but must be recognized nonetheless. . 0 Marketing Strategy The primary target for Sweet Basil's marketing strategy will be towards households and businesses in the cities of Treated, Monrovia, USA, and Rewind. Americans love pizza and it is clear that everyone in these cities should be marketed because of pizza's popularity and sustained growth throughout past years. For no w, Sweet Basil only offers take-out, dine-in, and take-n-bake services to its patrons, which leaves delivery open to competition.Sweet Basil realizes that they can serve 65-70% of Pizza Power Report). Undoubtedly there is a substantial amount of market share that an be earned with the proper market-challenger attack strategies. Sweet Basil anticipates being able to sell more pizza to current customers, sell to market segments that have not previously been targeted, and gain a higher market penetration. Word of mouth advertising has been Sweet Basil's sole source of advertising for the past fourteen years and now the time has come to try a new initiative to increase growth and profits.Although word of mouth advertising is extremely effective and well trusted from consumers, Sweet Basil finds that most loyal clients did not hear about the pizzeria until the first couple years of residing in Treated. With this in mind, the pizzeria will kick off some new marketing strategies to increas e its overall exposure to the businesses and households in its target market. Sweet Basil will look to gain new customers through new-market segment strategies.More consumers need to be aware of Sweet Basil's unparalleled service and great tasting pizza; word of mouth advertising will not penetrate as many consumers as supplementary advertising. Sweet Basil also looks to engage in encirclement attacks throughout the before-mentioned cities in order to gain exposure into some of the competition's territory. Finally, Joint partnership advertising will be conducted to decrease overall advertising costs. Paper flyers will be attached to every take-out box, promoting take-n-bake pizza to current patrons, which well result in increased usage.Flyers that include coupons will be served to residential and commercial properties in order to increase new customers. This will help Sweet Basil primarily increase sales over time but will also help in gaining exposure to the target market. A recent study shows that 46% of pizza consumers report that coupons or promotions influence where they decide to purchase their pizza (Barrett, 2010 Pizza Power Report). If these statistics prove to be true, Sweet Basil will surely be able to earn new business amongst the community.Sweet Basil will also exploit other forms of integrated marketing communications through website development, mass SMS marketing to loyal patrons, and usage of social media platforms. The website will allow consumers to view the menu and leave comments, questions, and concerns, which will be viewable for everyone to see. Catering is a huge source of Sweet Basil's success and consumers will be able to navigate through catering options and information. People will also be able to add themselves onto the weekly email that will be sent out to include coupons and special promotions.This will help Sweet Basil in obtaining more market exposure to current and new clientele. â€Å"With so many people now using the Inter net to search for products and services it is now acknowledged that having a business website is Just about as essential as having a telephone† (Touched, 2001). Sweet Basil will also utilize mass text message marketing in order to promote specials and promos that are offered each week. This will be initiated using Decontrolling. Mom to ensure that these messages can be sent every other week to market different promos and special items to consumers.Each customer will be asked if they would like to receive promotion emails and text messages from Sweet Basil. The success rate for permission based mobile marketing campaigns is around 25% Oarfish, 2006). This will ensure seamless impersonal communication to Sweet Basil's loyal patrons. Lastly, Sweet Basil's marketing include the development of a Faceable, Namespace, and Twitter account so loyal patrons can feel more united with Sweet Basil's service and undeniable quality food. The Namespace and Faceable pages will allow customers to view the menu and catering options that Sweet Basil offers.This type of marketing is virtually free although it is time consuming to continuously update. Sweet Basil will also utilize cable television marketing in order to market to new customers. Advertising will only be targeted to Time Warner Cable's Foothills and West Covina coverage areas in the San Gabriel Valley (Coverage Area 2011). Mostly sports programs on ESP. and popular shows on Bravo will be targeted to enhance Sweet Basil's exposure to their target market. This will be exercised during the first 90 days of marketing plan.All of these integrated marketing communications will allow Sweet Basil to reach a large market of new consumers as well as continue to gain increased business with existing patrons. These marketing strategies were also selected due to their low cost and minimal time consumption required. 3. 1 Mission Statement â€Å"We exist to provide the best quality dine-in, take-out, and take-n-bake pizza to the Route 66 communities of the San Gabriel Valley. This will be accomplished through unmatched customer service, value, and great tasting pizza; creating a memorable experience for all to enjoy'. 3. Marketing Objectives Sweet Basil will achieve a few concrete objectives through its current and future marketing actions. The first and most crucial goal for the pizzeria is to conduct new- market segment strategies in order to earn new customers throughout Treated, Monrovia, USA, and Rewind. This strategy will be initiated immediately at the start of Quarter 2 this year now that Sweet Basil's take-n-bake pizzas are now in production. The target market objective is to increase overall market share, earn new customers, and amplify purchases to increase sales by 40% from now throughApril 2012. Collectively, Sweet Basil seeks to increase overall market share to 25% of all dine-in, take-out, and take-n-bake purchases in Treated and 13% of market share from Monrovia, Rewind, and USA. This al so includes 15% market share transactions from employees of local businesses in Treated and Rewind as well as 25% market share to households in Treated, Rewind, Monrovia, and USA. In order to accomplish these goals, Sweet Basil will have to gain at least 30 new customers every week on average and the goal is to be able to retain 90% of them.This strategy ill allow the pizzeria to maintain strong, positive growth each quarter through it's increasing customers. Another objective is increasing consumer usage to where customers are purchasing Sweet Basil products at least one more time per week. This will include increasing the purchase volume of each consumer as well. New consumers will be able to be measured by asking them how they heard about Sweet Basil to begin with and afterwards asking them if they would like to receive coupons and promotions by email and text in the future. Sweet Basil's target is to achieve the before mentioned market share by the end of 2012.Sweet Basil will a lso set promotional objectives in order to reach new customers through brand and company awareness as well as implementing strategic sales promotions. Millennial will information through word of mouth (Mr.. Youth, 2011). A major objective will be to grow the pizzeria's followers on Faceable and Namespace to 750 people by the end of 2011 to engage in more promotional initiatives. Seasonal and promotional entrees will be posted on these social media sites every other week to maintain consumer usage. The address, phone number, menu, and catering options will all be included n these sites as well.Sweet Basil will be hiring an individual to hand out door flyers to residential households and businesses in the cities of Treated, USA, Rewind, and Monrovia (starting in the city of Treated). This marketing effort will be conducted every Wednesday and Thursday from am to pm for the residential areas and every Monday for local businesses. Similar flyers will be on every take-out pizza box as we ll to notify customers of the option to purchase take-n-bake pizzas. No additional employees would have to be hired for the business as long as business doesn't increase more than 50%.The flyers will include specials and combos that can be purchased in exchange for the coupon on the flyer. Each flyer will have a coupon to receive 1 free slice with a purchase of any take-n-bake pizza. The flyers will also contain a coupon to purchase a take-n-bake pizza for 25% off. Additional specials will be included on the flyer and sponsors will be able to advertise on the other half of the flyer. The sponsors will incur all costs for the production of the flyers and will also include Sweet Basil's website, Faceable, Namespace, and Twitter information for nonusers..These flyers will be very similar to the email and text messaging blasts that Sweet Basil will be conducting every other month. Sweet Basil will look to enhance partnership efforts with local businesses, schools, cities, and clubs in o rder to increase exposure and maintain growth. Catering services and pizza specials will be offered for discount prices depending on the size and occasion of the order. Sweet Basil looks to increase its catering by 5% to businesses and residential areas. This will also help Sweet Basil gain more exposure and market share from satisfied customers. 3.Financial Objectives Sweet Basil will be targeting a number of sound financial objectives in order to increase profits and sustainability. As stated in the marketing objectives, increasing sales by 40% during the first 365 days is the target for Sweet Basil. Overall, Sweet Basil aspires to collectively reach 30% market share for Dearth's dine-in, take out, and take n bake pizza sales by the end of 2012. The goal for Rewind, USA, and Monrovia will be 20% overall market share. Currently, Sweet Basil obtains 30% of it's business from take out orders, 50% from dine in business, and 20% from catering.With the current market conditions, Sweet B asil's overall gross income amounts to $23,000 on average per month. The gross income should amount to at least $32,200 per month on average by April 2012 in order to realize a successful marketing plan. This would amount to an extra $110,400 in gross income a year, which would only be substantial if costs remained low. Sweet Basil doesn't require hiring an extra employee for the additional expected business so long as it doesn't exceed a 50% sales increase. Social media sites such as Faceable, Namespace, and Twitter are free which makes it a valuable marketing source financially.Sweet Basil will be using decontrolling. Com to send out SMS blasts including specials and deals for and allows for 5,000 customers to be included. The annual cost for this service then amounts to $960/year while emails are virtually free to send to loyal subscribed customers. Sweet Basil's website will be created for $1000 through a current part- time employee that is also going to school for web design. T his will be built during slow business hours at the restaurant to decrease hourly costs for the web development. The web domain will cost around $100 dollars a year to maintain.One f the expensive strategies for Sweet Basil Pizza is the cost of hiring on an employee to work Monday, Wednesday, and Thursday for 24 hours a week handing out flyers. The employee will be paid $8/her, so the annual cost will come out to about $12,000 if gas costs are associated. The flyers will be free to Sweet Basil because the sponsors will incur that cost. The most expensive marketing source will be advertising on Time Warner Cable during the first 90 days of marketing plan initiation. As mentioned earlier, only ESP. and Bravo will be targeted and we will run 4 commercials per day on both networks.With a cost of $40 per spot, Sweet Basil will incur a total cost of $28,800 Just in television advertising costs. An increase in sales will not result in a significant increase in utilities since the restauran t hours will remain the same and because the pizza oven is always left on. The cost of running the oven 2417 isn't much different from the cost of turning it off at night and the oven takes an hour to warm up to 600 degrees when opening in the morning. After all the costs are subtracted, Sweet Basil can make a return of $67,540 but the increase of ingredients, labor, and materials have not been subtracted from this mount.All of the before mentioned other than pizza ingredients and material will remain the same regardless off 40% increase in sales. 3. 4 Target Markets As stated earlier, Sweet Basil's target market will consist of all pizza lovers in the Route 66 cities of the San Gabriel Valley. In recent studies, 93% of Americans eat pizza at least 1 time a month, (Pizza Plan, 2011) which means there is a sizeable target market for Sweet Basil to penetrate. There are 21,782 residents in Treated, 46,672 in USA, 37,523 in Monrovia, and 1,433 in Rewind, which brings a total consumer ma rket of close to 110,000 people (city-data, 2009).Rewind consists of businesses for the most part, which gives Sweet Basil an opportunity to increase dine-in sales to workers during the day and catering services for luncheons and special events. Consumers report that 45% of restaurant pizza orders are for take- out and 20% of orders are for dine in (Barrett, 2010). The general strategy for Sweet Basil will be â€Å"differentiation† as described in Porter's generic strategies (Marketing Management, 2009). Sweet Basil offers an incomparable product compared to the rest because they use the best and highest quality ingredients while having the nines recipes.The key source of this distinction is the â€Å"sweet basil powder† that patrons can top on their pizza after it is made. Take-n-bake pizza is not offered in any other restaurants in the area other than Sweet Basil, which gives them an advantage for consumers that want a more unique taste. Consumers have a need for gre at tasting quality pizza that can be purchased right when they want it with little wait time and low cost. Sweet Basil certainly meets this need with the before mentioned points of difference and being able to dine-in and take-out as well. ND be out quicker than if they purchased fast food.Many consumers like driving by on their way home from work to get a late night special $6 one topping pizza that is hot and ready between 6-pm to feed their family after a busy workday. Others choose to stock up on take-n-bake frozen pizzas to serve at their convenience. Catering services are offered to businesses and patrons that have the need to feed a large event or party and a much more extensive menu is offered in order to add variety. Sweet Basil patrons range from all ages and nationalities, which is the advantage of offering a product that 93% of people engage in at least once a month.Pizza is also a relatively inexpensive way to feed a family and large parties of people in residential are as. This makes pizza ideal for people that are currently affected by the downfall of the economy and increases in unemployment. High school kids and local workers are a major part of the afternoon dine-in business that Sweet Basil receives during the week. Nearly 95% of Sweet Basil's business comes from returning customers, which proves that there is room for new customers. This also roves that the product tastes great and has an eminent price-quality comparison. . 5 Positioning Nearly all Americans enjoy eating pizza because it is a delicious and quick meal, which gives Sweet Basil an advantage over selling other products. In a recent survey initiated by Technetium, results show that 68% of those that have children 18 and under living in their household say that pizza occasions usually involve children (Barrett, 2010). This shows that pizza is a very popular amongst families but Sweet Basil does well with single person households and local workers since pizza is sold by he slice un til pm.This also helps in closing the gap for Sweet Basil's consumers and leaves only those that prefer ordering their pizza and having it delivered. Sweet Basil is not trying to offer delivery service any time soon, but many patrons prefer Just coming in to take-out their pizza rather than ordering delivered pizza from a competitor. This is exactly how Sweet Basil positions itself to consumers; the prices are low and affordable, the quality of food and flavor is unrivaled, and the experience is optimal. As mentioned earlier, â€Å"Sweet Basil† powder adds for a uniqueness that ant be tasted anywhere else which positions the business very well.All pizzas are created from scratch, using a large mixer for dough and fresh store bought produce, meats, and ingredients from local purveyors. Pricing strategies are used as well to effectively position Sweet Basil's food offerings. Sweet Basil sells pizza by the slice for only $1 where other companies may charge up to $3/slice. Sweet Basil also sells its large one topping take-out, dine-in, and take-n-bake pizzas for $8, which is a phenomenal value considering all of the top grade ingredients used.This creates a rice-quality comparison that isn't reciprocated from any competitors in the target market. Sweet Basil is able to position itself to a completely new market with the recent creation of its take-n-bake pizza. Minute reports that frozen pizza can be found in 66% of all households (Barrett, 2010), which gives Sweet Basil a nice competitive advantage over other pizza businesses in the San Gabriel Valley. Sweet Basil notices possible opportunities if they were to contract and create partnerships with local grocery stores and markets. Another possible opportunity in the future would be to

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INDIAN NEGOTIATION STYLES - Essay Example Its significance in business negotiations is however more important because it not only establishes understanding, but it derives advantages to the negotiating parties and the better a party can negotiate, the more benefits are derivable from the process. The research topic that explores negotiation strategies in the Indian culture is therefore important to stakeholders to international business involving the country, and its exploration promises a base for understanding communication strategies within the country’s culture. The research topic is further important, and therefore worth exploration, because of the Indian expanding economy that has become a center for international trade. International business entities have consequently shifted their attention to the country for either market for their products or for resources for production, and negotiation for better contracts is essential (Misra, 2009). Existence of diversified players from different countries with different culture further identifies the significance of culture on business negotiation in the country. Bowie’s exploration of the relationship between culture and business relations identifies awareness of communication styles across different nations as a factor to successful business relationships in the cultures. The author explains that such cultures are different across countries to indicate that a business negotiation between parties from different countries requires the parties understanding of each other’s culture (Bowie, 2007). An expression’s meaning in one culture may be different from its perceived meaning in another culture as has been noted in business negotiations between American managers and their counterparts from Asia and Middle East (Hooker, 2008). A study of negotiation strategies and traits in Indonesia has also identified the significance of understanding the country’s culture in order to benefit from business negotiations (Gray, 2010). Similar observations have

Using the IRAC rule law Essay Example | Topics and Well Written Essays - 1250 words

Using the IRAC rule law - Essay Example Using the IRAC rule law People always assume that riots and vandalism are not liable for compensation by insurance and the police are also not liable. However, According to commercial property coverage guide a riot is â€Å"any disturbances of the public’s peace by more than three people helping each other execute destruction of property and people by use of force and aggression in an unlawful manner†. According to this rule of law it seems the peoples assumptions are wrong yet the law states otherwise. The confusion here is that for the state to be liable for compensating Eric it must be first be investigated to find out the cause and intention. This is because for the state to compensate Eric, the law states that â€Å"the loss of his pharmacy must be accidental as intentional damages and loss and criminals acts are not liable for compensation†. According to Erick’s case, the people who looted, vandalized and burnt his pharmacy do not know him personally to be doing the damage intentionally nor are they doing it to cause damage for him. Secondly, the looting and vandalism was not done by Erick himself but a rowdy group thus the insurance is liable for compensation. The state is liable for compensation in Erick’s case since the police stood by and did not prevent the rioters from vandalizing and burning his pharmacy. Therefore, Erick must be compensated for losses incurred in his shop. Eric’s pharmacy company VCS was to be delivered pharmaceuticals by Tanya who owns a pharmaceutical delivery business.

RFID in the Context of Customer Services Research Paper

RFID in the Context of Customer Services - Research Paper Example According to the research findings, it can, therefore, be said that in the modern business world, there is a need for companies and firms to increase the quality of services they provide their customers or quality of goods and products they produce or manufacture. It is very hard for any company or a firm to regain popularity among their lost customers or improve their position in the market. To make a profit very often means to provide customers with better services. At the same time, a chosen marketing strategy of customers’ services improvement should be developed in compliance with the needs of the company; their assets, potential, set goals and many other internal and external factors. Moreover, with regards to a wide-spread nature of technological innovations, companies implement innovative technologies in customer services. In accordance with research conducted by†¦: â€Å"Technology does more than enable the creation of new or improved services. It may also impro ve consistent service standards of the company, and, what is more, important is to involve the customers in operations through self-service technology†. Therefore, the modern business world needs innovations. To keep pace with the globalized world every firm or company should meet new requirements and follow the developments of technologies. In order to appropriately introduce valuable innovative assets, it is relevant to assess their advantages and disadvantages. An individual-centered approach is high on the agenda in the modern business world. A customer is of crucial importance. The more customers the company has, the greater success comes.

Government response to terrorism Essay Example | Topics and Well Written Essays - 3250 words

Government response to terrorism - Essay Example There have been numerous controversies surrounding legal definition of terrorism. Left-wing critics claim that use of a nation’s armed forces in crushing an opponent’s political progress amounts to terrorism. In this context, a ruling government which uses indiscriminate violence to destroy an opponent’s progress engages in terrorism. Apart from a ruling government, terrorism comprise of violent activities used by nationalists fighting an oppressive regime. In fact the late Nelson Mandela was once branded as a terrorist by the white government in South Africa. This means that these controversies undermine existence of a definite boundary between justifiable uses of violence for political progress. Fraser and Staniforth (2012) says that from a legal perspective, UK law defines terrorism as any act of violence that causes or threatens to cause indiscriminate loss of lives, property damage and create a serious risk to health and safety of the public. The UK governme nt takes any such form of violence which seeks to influence governmental institutions or the public as acts of terror. Terrorism is not new in Britain. In the last decade, British security forces arrested approximately 1800 people in connection to terror related cases. Most of these individuals arrested are British citizens involved or associated with accomplishing assistance roles in extremist activities. Demographics show that a substantial portion of those arrested are radical youth lured by perpetrators towards a path of violent extremism.

From 'The Beginnings of Social Understanding' by Judy Dunn, explain Essay

From 'The Beginnings of Social Understanding' by Judy Dunn, explain how Judy Dunn believes the child's early social interactions may influence his or her devel - Essay Example Even among some of the higher mammals, where there is a process of integration of the young to the community, the time taken for that is brief. The detailed study of Dunn of the children as they grow in the family, show that children come to understand the social rules of the family and the feelings, intentions and relationships of others by personally experiencing a process. She argues that self-interest is a major motive in the social growth of children and their emotional experiences and the value judgement that they are naturally skilled in making even in early childhood impact in their development as full-fledged participants in the community. Dunn sees the seeds of the children's development in social skills and propensities of small children exihibit in infancy..Most children exhibit a tendency for co-operative play. Proneness to share food and toys and innate sensitivity to the feelings of others are imbibed early in life to equip themselves for the larger roles time will ask them to play in a society. The children almost instinctively prepare themselves to live in small groups, where collaboration and coordinated effort will be called for. The human condition from time immemorial depended on shared concerns.

How does positivist research in criminology seek to create knowledge Essay

How does positivist research in criminology seek to create knowledge that avoids these problems, and how successful has it been - Essay Example The positivist approach to criminology rejected the classical idea that people who commit crimes do it from free will; positivists believed that it is in our biological make-up, and that we are born with the tendency to commit crimes. So, we do not freely choose to commit crimes, we are born, or not born with criminal elements. While many positivists put our tendency to commit crime on different parts of our biology, the research was scientific – it looked for factual results. It was believed that if we could find factual results, then we could discover what characteristics are present in people who commit crime and then prevent it by finding the same types of characteristics in others – biological or psychological. The approach took this form because it believed that other ways of criminological research were based on elements of life which could not be controlled and which made crime difficult to predict and impossible to prevent. These elements of life were moral jud gement, subjective views of people and their beliefs and opinions. Positivists argued that because these elements were subjective, they could do nothing to help prevent crime and criminal behaviour, whereas a scientific approach could give proper statistics, and reliable results, which could gain much ground in the research of criminology. Although the approach of the positivist school appears attractive, this paper will argue that its final results were not as effective as it had hoped they would be. While it is not argued that the results brought could not be relied on, it is suggested that the results were not reliable enough to be applied to prevent crime. Of course, the prevention of crime based on scientific statistics would be a very attractive idea, both history and results have shown that in practice it has not been as effective as the positivist school promised. To believe in an objective idea of criminal behaviour is not

The character of Blanche Dubois Essay Example for Free

The character of Blanche Dubois Essay Explore the ways in which dramatic ways in which Williams presents the character of Blanche Dubois in a streetcar named desire. Tennessee Williams presents Blanche Dubois as Stellas older sister, until recently a high school English teacher. She arrives in New Orleans as a chatty, witty, arrogant, fragile, and ultimately breakdown figure. From the beginning of the play, the character of Blanche is depicted as a very shy character. The setting and talk of the other characters help illustrate the contrast between the arrival of the Blanche, the southern, old-fashioned belle and New Orleans, a very cosmopolitan place at the time. It is a bustling, busy, hectic city. Negro entertainers at a bar room around the corner. Race is less of an issue here then it was in the rest of the U. S at the time, and it is really publicized at the beginning of the book with a white woman (who we find out is called Eunice) and a negro woman. It is accentuated by the fact that the women are talking comfortably to each other, no sense of tension can be found during their speech. Soon enough, Blanche arrives, and the stage directions and her facial expressions give us an immediate idea of what kind of person she is. Her appearance is incongruous to this setting She looks incredibly out of place in this rough surrounding, in her dainty white dress. As the stage directions put it: There is something about her uncertain manner, as well as her white clothes that suggests a moth A moth is delicate and fragile, which is what Tennesse Williams is trying to get at when comparing her to a moth. The light, which Blanche shuns away from, makes the reader feel that she is very pure, white, the colour used suggests a virgin. We can tell she has put a lot of effort into her looks and appearance and seems very well off in the clothes she is wearing. She is daintily dressed in a white suits with a fluffy bodice ,necklace and earrings of pearl All this suggests that this well off, well dressed, delicate and fragile women is very out of place in these rough, mean streets of New Orleans. Tennese Williams then goes onto show, that our first impressions of Blanche are perfectly correct, she seems faintly hysterical and distressed when she speaks, due to the fact that she cannot believe that her little sister is living in such surroundings. She enters the house, after finding out that this is the correct address, and sits down in her sisters kitchen in a stunned state. This is where we learn that Blanche is from an aristocratic background, the name Dubois is originally French, and so her ancestors must have been French immigrants. She is unused to the negro woman being so close and friendly to her and finds is unsettling and rather rudely shoves her away. What I meant was Id like to be left alone The next actions Blanche make, have a deep impact on our perspective of Blanches character, not only is she a drinker, but it seems like she is an alcoholic, and a heavy one at that. She pours half a tumbler of whiskey and tosses it down After the two sisters meet up again, from Blanches speech, we learn that she still treats Stella like her little sister, talks to her in a very patronising way, almost as though she is trying to relive, or recount on past days. Oh, my baby! Stella! Stella! Stella for a star! Precious lamb! Another important part of the play is when she lies, she pretends to look for an alcoholic beverage, knowing where it actually is. She pretends to her sister, lying that its her first and that shes not an alcoholic. From her actions, we can she that Blanche is highly strung up, shes very nervous, anxious and worried. Their conversation eventually leads to talking about the house, which she describes as something out of an Edgar Allen Poe horror book, although it shows her having a good education (shes an English teacher after all), Blanche isnt very tactful at all. If its on her mind, she will say it, without any consideration to the person it may be offending. Tennessee Williams, in the first 11 pages, has given us a glance into the fragile life of Blanche Dubois, as a main character, she will have an important part to play, what that part is we will have to wait a see.

Cytopathic Effects as a Result of Infection of E-coli

Cytopathic Effects as a Result of Infection of E-coli Analysis of cytopathic effects as a result of infection of Escherichia coli by T4 bacteriophage using spectrophotometry and plaque assay Abstract T4 bacteriophage is a double stranded DNA virus that infects Escherichia coli and is an important tool in research and study of genetics. It contains about 168,800 base pairs of DNA. It has an icosahedral capsid as its head that contains its nucleic acid and has a tail structure formed of tail fibres, sheath, base plates and coat. These different structures of T4-phage play important roles when invading the host cell (in this case E.coli). T4-bacteriophage infects the host cell by lytic pathway where the host cells are used to produce virus components and it results in the lysis of host cell releasing the virus components to the external membrane. This experiment plans to examine the cytopathic effects of the T4-phage on E.coli using a spectrophotometer. Also, plaque assay is carried out in order to determine the original concentration of phage in the solution. The spectrophotometer reading increased for both control and T4-infected cultures as the time of post infection increased. T he highest reading was 0.192 for control at 120 min pi. Introduction Viruses are small infectious agents and are about 10-30nm in size. Strelkauskas, et al (2010) describes viruses as â€Å"obligate intracellular parasites† which means they need a host cell in order to survive and replicate. The viruses are classified depending on their morphology, chemical composition and mode of replication. They are divided into two groups based on the nucleic acid they contain: DNA or RNA. They are sub-divided into further groups according to their symmetry of capsid where the genetic material is enclosed within an envelope or without an envelope (naked). Also, the configuration of the nucleic acid (single-stranded or double stranded and linear or circular) play a role in the classification of viruses (Gelderblom, 1996). A fully assembled infectious virus is known as a virion and its structure is based on two important things; the ability to survive in harsh conditions until it can infect the host cell and to be able to shed the protective barrier in order to enter a host cell. Bacteriophages are viruses that infect bacterial cells and were first observed in 1915 and 1917 by Twort and d’Herelle. T4 bacteriophage is a member of T-even phages and infects Escherichia coli (E.coli) bacteria. It is considered as one of the complex viruses because of its genome which consist of 274 open reading frames and 40 of these reading frames encodes for structural proteins (Leiman, et al, 2003). T4- bacteriophage has been extensively studied since 1940s and plays a major role in advancement of modern genetics and molecular biology. Some of the early essential ideas of genetics including the basis of genetics code, mRNA, ribosome and the codon have came from studies using T4-bacteriophages (Miller et al, 2003). T4- bacteriophage contains double stranded DNA as its nucleic acid which is enclosed within a protective coat known as capsid. Its capsid is icosahedral in shape (shown in figure 1). It also has tail part which is made up of coat, sheath, tail fibres and base plates. The tail part is useful when recognising a host cell followed by penetration to the host cell thus causing infection. Bacteriophages have two types of replication strategies: lytic cycle and lysogenic cycle (Baker, et al, 2011). Lysogenic infection in E.coli is exemplified by bacteriophage lambda where the viral DNA replication takes place without destroying the bacterial cell. Here, the virion infects the host cell and instead of triggering more virus reproduction, it recombines with the host genome causing no damage to the cell which is known as prophage. These viruses can remain dormant within the bacterial cell for years and only cause infection under certain circumstances. T4-bacteriophage is a virulent virus that causes lytic infection to E.coli. The first step in this cycle is adsorption where the virus recognises the cell receptors on the surface of the host cell and attaches itself to the host using its tail fibres. Once attached to the host cell, the virus must penetrate through the cell membrane of E.coli. The base plate of the virus comes in contact with the cell wall of the host cell ca using conformational change in structure of the virus. This allows the sheath to contract and the core is pushed through the wall into the cell membrane where the viral DNA is injected into the host cell (Todar, 2008). DNA viruses have the same genome configuration as the host cell; hence the replication process used in host cell can be used for viral replication. T4- bacteriophage transcribes nucleases that break down the bacterial DNA which is used to produce more viral genome. The newly made viral nucleic acid and structural proteins are assembled together to form virulent viruses. The lysozymes produced by the bacteriophages as a late viral protein lyses the cell wall of the E.coli causing it to burst open hence releasing virulent virus which have to potential to infect other cells. The lifecycle of a T4-bacteriophage takes about 25-35 minutes to finish (Mayer, 2010). Figure 1: The left picture shows the electron microscopic image of T4- bacteriophage and the right shows the model of the T4-bacteriophage. The head of the virus contains a capsid formed by icosahedral structure that holds the phage’s double stranded DNA. The collar connects the head and the tail structures. The tail consists of core, sheath, base plate and tail fibres which are involved in recognising host cells and then attaching phage to specific receptors on the host surfaces (Todar, 2008). The virus-infected bacterial cell generally shows some changes in their phenotype such as altered shape, detachment from the substrate, cell lysis, membrane fusion, membrane permeability, inclusion bodies and apoptosis. These changes are known as the cytopathic effects of a virus (Cann, 2005). In this experiment, the lysis of E.coli is examined using a spectrophotometer which determines the absorbance of the cultures to indicate the growth of the bacterial cell within the flasks. Also, it is important for clinical and research virologists to know the number of infectious virus particles in a sample which is known as the titre. The plaque assay gives the most accurate results when determining the titre of the phage. T4- bacteriophages can be grown on bacterial lawn. Infected E.coli cells are lysed so, they will form visible plaques on the agar plate which are counted to calculate the titre of the virus. The experiment aims to firstly infect the bacterial cells with T4-bacteriophage in order to indirectly observe the cytopathic effects of virus infection by monitoring changes in bacterial cell growth, compared to an uninfected (control) culture. An absorbance reading is taken using a spectrophotometry as the cells in the culture grow and divide making the culture opaque and thus increasing the absorbance of the culture. Also, the experiment plans to assess the progress of T4-phage production during the infection of E.coli by taking samples of extracellular virus at regular time intervals post infection. Furthermore, the virus from each samples were quantified using plaque assays to demonstrate the progress of virus amplification that occurred during the process of infection in the bacterial cells. Materials and methods E.coli was used as the host cell of T4-bacteriophages in the following experiments. Measuring the changing cell density of cultures using a spectrophotometer: Two cultures were made; the control culture (C) consists of mixture of LB broth and E.coli whereas the T4- infected culture (T) was made by mixing LB broth, E.coli and 100ÃŽ ¼l of bacteriophage. The immediate absorbance readings at 0 seconds were measured in the spectrophotometer at wavelength 600nm and LB broth solution was used as a blank. The flasks containing the two cultures were placed in the orbital shaker covered with foil lids throughout the readings of absorbance. During the 1 hour incubation, 10  µl of the T4-infected sample was placed in a C-chip Haemocytometer and the bacterial cells were counted under the microscope which was used to calculate the multiplicity of infection (MOI). After 1 hour incubation, the absorbance readings were taken at 15 minutes interval until the cultures had been monitored for at least 2 hours. Harvesting virus sample: At 40 min post infection, 1 ml of each of the cultures were taken out and placed into sterile microfuge tube. The tubes were centrifuged at 6,500 rpm for 5 min and 750  µl of supernatant was removed from the T4-infected tube. It was then incubated over night and another sample was collected after 23.30 hours post infection. Preparation for plaque assay: A serial dilution of 10-7, 10-8 and 10-9 were made from the overnight T4-infected sample and dilution of 10-4, 10-5 and 10-6 were made from the 40 min p.i. T4-infected sample by using sterile M9 medium. 1 ml of E.coli culture was transferred to each of the two bottles containing 0.1 ml of the each diluted sample. The bottles were placed in water bath at 37 °C for 15 minutes for bacterial infections to begin. One small bottle of molten soft agar was taken from 42 °C bath and poured into labelled agar plates and evenly mixed with the bottle containing E.coli and diluted sample. This process was followed for all 6 agar plates. Then, the plates were incubated at 37 °C overnight after they were set completely. Plaque counts: After the incubation period, the agar plates were examined and the number of plaques formed on each plate were counted and recorded. Results The absorbance readings taken from the spectrophotometer at 600 nm of both the control and the T4-infected cultures is shown in table 1. At 0 min pi, both the cultures had similar readings (0.05 and 0.054 for C and T respectively) as they were just made. After one hour incubation period (60 min pi), there was increase in the absorbance for both of the cultures. However control had higher absorbance reading than T4-infected (0.106 and 0.064 respectively). Overall, the absorbance readings of both the cultures increases with the time except for 90 min pi in T4-infected where there is a decrease in absorbance reading by 0.028. The readings recorded for control is higher than T4-infected at each time period and the highest reading is at 120 min pi in the control culture (0.192). Table 1: absorbance reading of the cell cultures at 600nm Figure 2: Absorbance reading of control and T4-infected cultures against time Calculating the Multiplicity of infection (MOI)- the number of virions (pfu) per cell T4-titre = 2.74 x 1010 pfu/ml Cell count in T4-infected using C-chip Haemocytometer = 2808 cells per grid. Number of cells per mL = 2808 x 10,000 = 2.808107 cells/mL Number of cells per flask = 2.808107 x 23.1 (total volume) = 6.48 x 108 cells/flask MOI = (0.1x titre)/cells per flask = 2.74109/ 6.48108 = 4.22 pfu/cell. Table 2: class data of the plaque counts of T4-infected E.coli The growth curve of the T4-infected E.coli is shown in figure 3. A growth curve of a virus normally shows the eclipse period, latent period, rise period and the burst size. At 0 min pi, there is high number of extracellular cells (2.66 x 109 pfu/ml) as the virus has not been taken up by the E.coli cells. As the time increase to 20 min pi, the curve levels fell down due to penetration of viruses into the cell (as shown in figure 3). This phase is known as eclipse phase where the input virus begins to uncoat so, no infectious virus is detected. Latent period covers the period from the time of disappearance of infecting virus (eclipse phase) to re-appearance of it in E.coli. The rise phase is when there is a gradual increase in T4-phage titre as viral replication occurs and new cells are formed. Then the virus T4-tire levels off towards the end as cell lysis take place releasing the newly formed virus particles. However, the rise phase (shown is figure 3) doesn’t not rise gradual ly. The T4-titre rises until 60 min pi (2.845x 109) and instead of levelling off, there is a huge drop in the virus titre (8.05 x 107) at 80 min pi. In addition, the T4-virus sampled after overnight incubation (23.30 hours post infection), the dilution factors 10-7, 10-8 and 10-9 resulted in plaque counts of 12, 50 and 59 respectively. However, the plaques were only observed in one plate of each dilution and in the other plates no plaque were observed (Table 3 in appendix). Discussion Albrecht, et al (1996) states Infection caused by cytocidal viruses is normally associated with alterations in cell morphology, cell physiology and sequential biosynthetic events. The changes in cell morphology can sometimes be detectable which is known as cytopathic effects and they can be rounding of infected cells, formation of syncytia, and appearance of nuclear/cytoplasmic inclusion bodies. T4- bacteriophage usually causes death of host cell after replication causing cytopathic effects. A spectrophotometer is used to detect these cytopathic effects of T4-phage in E.coli. The spectrophotometer can only detect opacity due to the presence of bacterial cell and cannot detect virus as they are very small. So, as there is growth in cells in the culture, they become more opaque increasing the absorbance reading of the culture. The T4-infected culture didn’t have as much growth as the control as its absorbance readings are lower in all of the time period (as shown in figure 2). T4-phages can only replicate within the host cell therefore it must be grown in a bacterial cell. As shown in figure 3, at time 0 min pi, the amount of virus titre is the highest (2.66 x 109 pfu/ml). This is because the process has just begun as the T4-phage injects its ds DNA into the host cell after cell contact which is known as adsorption. Then, the virus titre drops down to 2.45 x108 pfu/ml at 20 min pi as it is attached to the host cell by receptor binding in order to penetrate into the host cell. At 40 min pi, the virus titre level begins to rise as the virus start to replicate within the host cell. The virus titre is suppose to increase till a certain time period and will gradually level off as the virus cell replication increases and after the host cell is filled with viral components, cell lysis occur releasing the newly formed virus phages to infect the surrounding bacteria. However, as shown in figure 3 this does not happen. The virus titre rises till post infection 60 mi n but there is a huge drop in virus titre after (8.05 x 107pfu/ml). There are errors in some of the results of the experiment like the decrease in absorbance reading of T4-infected at 90 min pi and the huge drop in virus titre at 60 min pi. Also, an overnight sample was taken from T4-infected culture at 23.30 hours post infection and plaque assay was carried out with dilution factors of 10-7, 10-8 and 10-9. There is no plaque formation in one of the two plates in each dilution (shown in table 3 in appendix). These errors in results can be due to various factors such as contamination in the samples due to poor sterilise technique, insufficient mixing and pipetting errors when making serial dilutions. Also, in plaque assay, the morphology of plaque depends on various environmental factors like the phage, the host and the growth conditions (Maloy, 2002). The size of the plaque is proportional to the efficiency of adsorption, the length of latent phase and the burst size. Also, the phages are affected by various physical and chemical factors like temperature, acidity, ions, etc. The other error can be made when counting the plaques in plaque assay. The counting is subjective to the counter as different counter would get different results for the same plate. The colonies were concentrated so it would be hard to differentiate between single colonies as they grow very close together. For more accurate counting of the plaque, the plates with 10-200 plaques would be chosen as there were three dilution factors of plates to choose from and anything with >200 plaque counts were not counted. Also, the experiments could be repeated more than once and for longer period of time when monitoring T4-infected E.coli so, average could be taken out which would give more accurate and reliable results. In conclusion, T4-bacteriophages are virulent infecting E.coli cells by lytic pathway and this can be measured by examining the cytopathic effects using spectrophotometer. Also, plaque assay of T4-infected E.coli helps to determine the virus titre – concentration of virus in a sample. T4- bacteriophages are a model organism to study and are involved in advancement of modern genetics and molecular biology. Also, they could be used to treat bacterial diseases as the theory states that phages can selectively kill the host cell without damaging the human cells. Some potential applications that are being considered include adding phage suspension to grafts in order to control skin infections and intravenous fluids for blood infections (Talaro, et al, 2007). Word count: 2,763 References Albrecht, T., Fons, M., Boldogh, I., et al. Effects on Cells. In: Baron S, editor. Medical Microbiology. 4th edition. Galveston (TX): University of Texas Medical Branch at Galveston; 1996. Chapter 44.Available from: http://www.ncbi.nlm.nih.gov/books/NBK7979/ Baker, S., Griffiths, C. and Nicklin, J. (2011). BIOS Instant Notes in Microbiology. 4th edn. New York: Taylor Francis Ltd. Cann, A.J. (2005).Principles of Molecular Virology. 4th ed. United States: Elsevier Academic Press. 210-211. Gelderblom HR. Structure and Classification of Viruses. In: Baron S, editor. Medical Microbiology. 4th edition. Galveston (TX): University of Texas Medical Branch at Galveston; 1996. Chapter 41.Available from: http://www.ncbi.nlm.nih.gov/books/NBK8174/ Leimana, P.G., Kanamarua, S., Mesyanzhinovb, V.V., Arisakac, F., Rossmanna, M.G. (2003). Structure and morphogenesis of bacteriophage T4.Cellular and Molecular Life Sciences. 60 (1), 2356–2370. Maloy, S. (2002).Phage plaques.Available: http://www.sci.sdsu.edu/~smaloy/MicrobialGenetics/topics/phage/plaques.html. Last accessed 30 March 2014. Miller, E S., Kutter, E., Mosig, G., Arisaka, F., Kunisawa, T., Rà ¼ger6, W. (2003). Bacteriophage T4 Genome.Microbiology and molecular Biology Review. 67 (1), 86-156. Strelkauskas, A., Strelkauskas, J. and Moszyk-Strelkauskas, D., 2010. Microbiology, a clinical approach. New York: Garland Science. Talaro, K.P. (2007).Foundations in Microbiology: Basic Principles. 7th ed. Phillipines: McGraw-Hill. 160-181. Todar, K., 2012. Bacteriophage. [Online]. Available at: http://textbookofbacteriology.net/phage.html..> (Accessed 30 March 2014). Appendix   Ã‚   Table 3: T4 virus sampled after overnight incubation (23.30 hours pi)

Dollarization in Cambodia

Dollarization in Cambodia Dollarization occurs when a country uses US Dollar or other currency instead of or along with local currency. The picture of dollarization can be as follow: using dollar for bank Deposit, paying debt, buying goods and service, measuring national budget. 1 There are three types of dollarization: official, semi-official, and unofficial. Official dollarization occurs when a country use dollar as the legal currency instead of domestic currency. For example, Panama is the dominant official dollarization adopter. It has no domestic currency published at all. The second type is Semi-official dollarization. Some countries in the world use US dollar and domestic currency at the same time; in other word, they use bimonetary systems. This allows people to make deposit in US dollar, do some transaction, but it only act as second role in paying wage, tax, electricity, and daily expense. Adopting this system, the central bank can place its own monetary policy. Cambodia, Lao, and Haiti are the exam ples of semi-dollarized countries. Third, in unofficial dollarization, some countries majority wealth is hold in foreign currency and people can use US dollar substituting domestic currency either legally or illegally. In short, when a country uses other currency beside it own to substitute the three functions of the monetary, it is theoretically that the country has been dollarized formally, semi-formally or informally. 2. World Dollarization Implication There are two main aspects of dollarization. Dollarization is the subject of not only the economic or also of Politic. Economists think that money is only just public goods which consist of three functions: means of exchange, store value and unit of account and its purpose is only to ease the economic transaction. Dollarization is the symbol of the US power influence country money. The US aid for the reconstruction of Western Europe after the World War II and many other countries, the role of US in world stage became more important. Then after the abolishment of Gold Standard in 1971, the US dollar also became the main currency in the world. Because of shock of financial crisis, some countries adopt dollar US to reduce the risk and create stability. For, those countries adopting dollarization is only another term for fixed exchange rate compared to US dollar without much effort2. Comparing to developing country currency, it is more reliable, valuable and profitable in doing trade, st oring value, and making transaction. However, some countries use other currency with similar quality such as Germany mark, Japanese yen and now Euro in Europe. Beside economic value, money contains purchasing power which is the heart of politic. The power has distributed to the creator, the exchanger, and especially the controller. Thus, distribution of money does not only create hierarchy of people but it also creates hierarchy in the world.3 However, for some other countries dollarization is the heart of political interest. For instance, using US dollar in Latin America implies its dependence on US and also shows its inferior. East Timor adopt US dollar as its official currency to prevent Indonesian influence. In short, dollarization can be characterize into both economic and politics. Through both means the dollarization is becoming new influence of US in the world. 3. Dollarization in Cambodia Dollarization According to IMF the proportion of Dollar in economic circulation is 90% which is indifferent for a decade ago. In an article dollarization in Cambodia, and policy options on the way forward, Menon (1998) concluded that à ¢Ã¢â€š ¬Ã‚ ¦dollarization is not the problem, but is merely symptom. The problem (or the cause) is a lack of confidence in the riel, whilst the symptom (or the effect) is the use of another currency such as the US dollar.4 Dollarization in Cambodia is the result of both past and present economic and politic status. Dollarization in Cambodia is the direct legacy of the destruction of economic and financial Institutions after the 1970s, economic mismanagement in the 1980s, and the large inflows of US Dollars during the UNTAC period in the early 1990s5.Today, in Cambodia the US dollar still serves all three functions of money: it is widely used as a medium of exchange, store of wealth, and unit of account. The fact that dollarization is not the real problem but it is the lack confident in riel can be rooted as far as the Khmer Rouge Regime. In 1975 the revolution of Khmer Rouge took over the Cambodia politic and economy. influenced by the Marxism, to make Cambodia a communist country the Pol Pot abolish riel currency as well as stop the national bank operation and thus hope to fill the gap of the rich and the poor. Cambodian people lived in hardship without any personal business activity, any mean of store value or exchange, on private ownership. Fortunately, in 1979 the population was saved; however, this country returned to the state of traditional economy using barter system. Then, no t until 1980 did riel currency appear again. Experiencing shock in 1975 when their saving money became scraps in only days, Cambodian people later preferred to use other means such as gold, silver, jewelry for exchange. Most people used riel currency for only small transaction and not over 50$ saving. When the dollar was introduced again in 1990s, it is generally accepted along with previous gold and silver money. As much 1.7 as US million dollars has poured in Cambodia through UN peace keeping activity, the UNTAC6. This situation paved the ways of Cambodian economy depend on the stronger money US dollar and Cambodia was easily the most highly dollarized country in Asia, and one of the highest in the world The share of dollars in currency Circulation is highest in Cambodia, estimated at about 90 percent. Nowadays Dollar still plays major role in business transaction, and the major deposit in bank. The existence of dollarization in Cambodia is also expected to last. Another reason fo r Cambodia in accepting dollarization is just a pressure of its country as a developing economy. Even though Cambodia has done three decade or reconstructing the economy, reducing political and economic uncertainty, there are more actions to be done to get out of dollarization. While growth and political uncertainty greatly has been reduced, Cambodia remains a low income country with significant inequality and poverty, and some degree of political uncertainty remains. For example, political turmoil in 1997 combined with Asian financial crisis would have been more even more threatening to Cambodia if it had not been dollarized. 4. Conclusion As many states have problem in both economic and politic stability and weak monetary system people will consider using another currency which is more stable and valuable in most situation. In the serious case some countries do not have own currency at all but US dollar. As the US has strong monetary regime its currency impress those developing states to use US dollar; therefore, US may somewhat influence those state in both economic and politic. Some states may be dollarized in order to create financial stability; however, they are unsure what can US do with dollarization for politics. Cambodia is not the exception. Since 1970s and had been attracted to new currency US dollar in since 1990s. Until now, the degree of dollarization has changed only a little. Dollarization was injected so gradually that people get accustomed to it despite the government effort to de-dollarize in the last decade. Cambodia economic and politic problems still fuel dollarization existence. Next issue is to discuss the advantage and disadvantage in Cambodia. MC2: Situation of Dollarization in Cambodia Today and Its Cost and Benefit After the two decade of United Nation Transnational Authority in Cambodia (UNTAC) operated peace keeping activity and introduce dollarization in Cambodia, with high economic performance with average two digits GDP growth and considerable political stability Cambodia should have come out of dollarization already. However, Cambodias economy is still highly and increasingly dollarized which urge the government to critically consider whether to de-dollarize by comparing its cost and benefit. The status of Cambodia dollarization today is not far different from the 1990s1. The dollar still serves three functions in this economy: making transaction, storing value and being used as unit of account. The cash dollar in circulation in Cambodia is 90% of all value of transaction which is similar as a decade ago. Dollar has been widely use for private sector wage payment, medium of international trade and also purchase large value products. Moreover, dollars also dominate the currency deposit as storing value instrument in Cambodia. According to the National Bank, the foreign currency deposit in broad money (M2) is accounted for 75% in 2006 increasing from 54% in 1998. Furthermore, 97% of bank deposit is in term of dollar. The recent increase in dollarization is the result of two main points the higher economic growth and recent political stability has contribute to more dollarization. When the investor think Cambodia is a good place to invest they will inject more dollar investm ent. In addition, the open trade economy also allows Cambodia to do more trade with other countries using dollar as medium of international trade exchange. Long before this happen the issue of dollarization has been discussed on cost and benefit but at this time it is even more critical to figure out that the cost of dollarization is more than benefit in Cambodia2. The benefit of dollarization in Cambodia can be encouraging saving, preventing capital flight, providing low risk of currency and exchange rate devaluation. First, the dollarization increasing saving when there is a better currency that is more reliable, therefore, people will tend to save in the bank in dollar to increase their wealth as well as lubricate the economy. Second, this also prevent hot money go out Cambodia in a short time of return from investment because investor still deposit money in local bank and transfer to their homeland at any time when there is high portion of dollar deposit in the bank. Last but not least, dollarization provides security from the risk of currency devaluation and exchange rate depreciation. When the local money face inflation or depreci ation the dollar holder will not worry about the value of asset they hold in dollar. On the other hand, those benefits are little comparing to cost of dollarization. First of all, riel is the national symbol of states sovereignty so using dollar is really affect sovereignty and national identity. Second, When Cambodia use dollar as dominate to riel currency, the national symbol has been eroded because the people do not trust their own government. Instead of get easily affected by local inflation, the dollar holder get easily affect by dollar instability especially in recent years. Thus, it means that Cambodia is somewhat dependence on the US federal monetary policy. Finally, dollarization make local monetary policy less effective, in other word, the central bank cannot use its own currency to fully stabilize price and economy. When government want to print more money it will not increase much in the economy because most of transaction done by dollar and the government also cannot co ntrol the interest rate since the most deposit is in dollar not riel. Government also cannot get inflation tax (print money to finance short term deficit but let go the inflation) to finance the government budget especially in hard time.3 Being unable to use inflation tax or seignior age to support emergency needs the government of Cambodia is estimate to loss seignior age to be $682 million at the end of 2004, with an additional $61 million lost annually. and especially in the case of paying the military, the Barry Eichengreen (1994): Money can be printed to pay soldiers, to purchase materiel, and to underwrite the other costs of a war of national defense without having to wait for tax returns to be filed or for a foreign loan to be extended. As the state sovereignty and being able to use own policy is very important the cost burden by dollarization above have already exceed the benefit. Thus it is time for Cambodian government to get more effort in de-dollarized campaigned despite the problem of lack of both commitment and capacity. In short, even though the economy and politic of Cambodia has improved the dollarization has not been eliminated but it increases because of the more free market mechanism. However, dollarization has impose more cost such as hindering Cambodia from using its own monetary policy, eroding national sovereignty and being not able to finance government budget deficit which is far more significant that the benefit such as creating price stability, encouraging save and discouraging capital flight. This is the high time for Cambodia government to respond to those issues. Cambodia cannot stay aside from dollarization as it shows the higher level. The Cambodia government has to show its commitment and strengthen capacity to combated dol larization either locally or regionally. MC#3: Policy Option for De-dollarization in Cambodia The government of Cambodia has realized that the current situation of dollarization in Cambodia has higher cost than benefit. The cost is that dollarization has weakened domestic monetary policy capacity to manipulate the financial and monetary system while the benefit has gone to price stability and trade and investment integration. The Cambodian government has; therefore, allowed the side effect of US federal policy to influence its economy for a long time either good or bad. Thus, it is high time for Cambodia to strengthen de-dollarization. There are two main procedures in de-dollarization which are domestic policy and regional policy. However, this paper will cover only the possibility of policy option done by the Government of Cambodia alone. The suggested policies to de-dollarized Cambodia economy are full dollarization, currency board agreement, and continue Interim policy reform. However, the latest seems most preferable. The first choice of Cambodia is to move forward to full dollarization following the precedential example in Latin American economy especially Panama. Adopting this policy, Cambodia has a great save in transaction cost, is easy to integrate itself in the regional and global economy by trade and capital flow and also maintain high price stability. However, full dollarization seems not the right choice for Cambodia. Since Cambodian economy does not closely related to US and thus it does not allow Cambodia to keep track with US economy easily. Moreover, giving up riel currency implies scarifying more seigniorage benefit to US and has no more ability to use own monetary policy as the lender of last resort of domestic commercial bank. Moreover, the government of Cambodia hasnt showed any commitment to turn to keep dollar as legal tender. The Minister of Ministry of Economic and Finance, Mr. Keat Chhun at the Launching Cambodian Economic Forum in 2006 said However, it should be seen that the Royal Government is now implementing de-dollarization. Our economy must be based on national currency, which should be based on a basket of foreign currencies and consistent with the integration of our economy into regional and world economy. It is not likely that Cambodia take a reverse policy from its commitment. Second policy is to create currency board agreement in Cambodia. A currency board is a monetary authority, unlike central bank, issue domestic currency that is always convertible to foreign currency at a fixed exchange rate on the basis of 100%. This means that if 1$ = 4000 riel, the currency board needs 10$ reserve to issue 40000 riel. The currency board makes profit by gaining interest from its foreign reserve by the expense of cost in circulating local currency. The advantage of CBA is the gaining of seigniorage benefit over the dollarization that makes country loss in that. Although Currency board seems a good choice but it need too much effort from Cambodia and also has side effects. There is an estimated that riel is 10% of the currency of circulation and the official reserve is triple of this which is equal to 30%. Thus, it means that Cambodia need to triple the reserve to collect all dollars in circulation. Therefore, currency board may lead to a mass government debt. Is there any other ways that Cambodia can get more official reserve? Finally, the last alternative for de-dollarization is to use interim policy. Interim policy is to set objective of de-dollarization in longer term and accelerate reform. In this approach, the government of Cambodia should left the monetary system as they are on the one hand; and increase macroeconomic stability which increase riel confident and demand as well as restore riel-friendly environment on the other hand. First of all, National Bank of Cambodia plays an important role in this policy. NBC is the last resort of loan of commercial bank, so NBC provide riel as a mean to refinance. Then Cambodia government should promote the use of riel currency as a mean of exchange with security and low cost. Last, the NBC can use Treasury bill to attract the riel financial market by providing higher interest than dollars saving. Beside the role of the bank, the tax policy reform is also taken into account. Demand of riel can be raised when there is obligation to pay all kind of tax in riel. Thus, when there is more tax collection in riel implies more demand in riel. Besides, the adaptations of existing institution that allow ease the dollarization is important. For example, the minimum wage law in Cambodia is indentify is dollar not riel and the most international organization operated in Cambodia preferred to pay salary in dollar only while in other country the government required the international organization to pay 30%-40% in local currency. Moreover, there are also surplus demands of riel in microfinance that cannot be fulfilled. it is estimated that microfinance industry demand Riel 120 billion in 2008, but the supply is not enough. Thus, it is important to resolve the dollarization-friendly-condition above by remove any status serve for dollarization although there is a certain portion in dollar paying in wage and salary and increase supply of riel in microfinance industry. One can criticized that Cambodian government has done a lot in reform for macroeconomic stability but the result is still high dollarization in today economy. Cambodia has enjoyed high growth, average two digit growth in last five year, despite the distraction from the global financial crisis in 2008, yet the there still the same dollarization. In addition, to restore attract demand in riel as a secure and low transaction cost currency is not good because the commercial bank has promote it by giving higher interest rate than dollar deposit already. The problem is not focus on what have Cambodian has done, instead it is important to know what else needed to achieve long-term goal of de-dollarization. Moreover, gradually de-dollarization process can ease the economy adaption. As result, when the Cambodia reach the macroeconomic stability the authority can take advantage of strong financial system to increase confident in riel and thus to de-dollarized. In conclusion, Dollarization in Cambodia is not the matter that easily to settle because there a high link between citizen who prefer dollarization as the result of being not confident in riel and weak financial institution and a high loss in the government who is the coordinator between those two. Among the suggested policy in de-dollarization which are full dollarization, currency board agreement and interim policy, the last choice is likely the best option for Cambodia because it respresent the appropriate capacity ot the states as well as allowed people to increase confident and demand in riel considerable. However, the previouse effort in this policy is not enough so Cambodia need a higher commitment and capacity in this policy. On the other hand, domestic policy alone may not enough to deal with the dollarization which is the result from capital and trade integration. Therefore, regional cooperation combating dollarization can be the future choice for cambodia. MC4: Subregional Cooperation in Dedollarization. Cambodia, Laos and Viet Nam have shared common characteristic as the newly emergence economy. Firstly, the three countries or so called CLV countries have transform from central planned economy to free and open market economy during 1980s and 1990s. Because of the experience of price instability, fragile monetary and exchange rate policy and the underdeveloped or non existence of financial market make all countries similarly tend to use Dollar alongside the local currency despite the different level of dollarization. Although dollarization has contribute to price exchange rate stability, it is not the good choice for them in longà ¢Ã¢â€š ¬Ã‚ term because the government has lost much seigniorage, benefit and also the role of last resort of lender of central bank. CLV has tried their own method to deà ¢Ã¢â€š ¬Ã‚ dollarize to cope with shortà ¢Ã¢â€š ¬Ã‚ coming problems by their own reform so as to gain currency confident and also improving financial institution. Those policies seem to need much effort and time and CLV to achieve alone, therefore there is also another choice of subà ¢Ã¢â€š ¬Ã‚ regional cooperation among CLV countries such as exchange rate regime and single currency area. For CLV cooperation in monetary and exchange rate policy to combat both depolarization and monetary system sustainability which includes price stability, financial stability and exchange rate stability, CLV have to create cooperation environment as a precondition. First, they have to create a network of policy makers, economist elites, officials, and researcher from all level of government and financial institution to take close surveillance on CLV economic performance and discuss the possibility of new policy. Moreover, the networks should make a regular meeting information exchange, checking progress and also make consultant the possible area in economic integration in the region. Secondly, CLV countries should create strong connection of capital market among them. There are two possible alternatives for this. The Viet Nam should allow the Cambodian and Laos company to list it stock market or the CLV can create common bond market of CLV subà ¢Ã¢â€š ¬Ã‚ region. To develop capital market in CLV countries they also need to make a joint regulation and supervisory to ensure transparency to investors and they need to reduce foreign exchange restriction among the three countries to reduce exchange rate risk among investor too. After achieving the above precondition in monetary and exchange cooperation above, CLV have two choices which are exchange rate cooperation and monetary cooperation to multilaterally combat dollarization. First of all, consider the possible of future exchange regime in ASEAN+3 in the East Asian economic community, the CLV exchange rate cooperation can be pilot project of the bigger picture of cooperation. CLV countries should consider the joint peg of currency to Dollar or currency basket of currency famously Dollar, Euro and yen while the weight of currency depends on the trilateral discussion. This common peg to Dollar is a good choice for CLV countries because of several reasons despite some difficulties. First, the stable exchange rate to Dollar has showed the strength of currency against outside fluctuation thus gain credibility of currency. Second, CLV already adopt restricted fluctuation of currency against Dollar and those main trading partner, China also already peg to Dollar. By doing this the three countries will have less transaction cost in changing their currency to Dollar when they are doing trade and at the same time their currency will get confident from people since it is stable with Dollar. On the other hand, when CLV peg to the basket of currency including Dollar, Euro and Yen, the CLV country can reduce risk when there is currency shocked in US. Instead of rely solely on exchange rate stability with Dollar, CLV reduce the risk by depend on two more major economies, Europe and Japan. There is no correct proportion of the three currencies in the currency basket, yet it depends on the economic relation of CLV to the Gà ¢Ã¢â€š ¬Ã‚ 3 (US, Europe and Japan) and also their own negotiation. Besides, CLV can move further to subà ¢Ã¢â€š ¬Ã‚ regional currency board which ensures the stronger peg to foreign currency thus they get more seigniorage benefit. However, they need much more effort to achieve this. First, they have to create a stronger cooperation in coordinating currency policy. Second, they need more foreign reserve to run currency board and it needs high legal endorsement to get people use local currency. In addition to cooperation in Exchange rate regime, it is also important that CLV cooped to create monetary regime. The CLV common currency is a long term goal they require many effort from CLV to improve the credibility among public of currency as well as effective institution to handle the transitional change of currency and strong political will of CLV leaders. Besides, the CLV currency area can be established only after the Asian Currency Unit (ACI)à ¢Ã¢â€š ¬Ã‚  which is similar to European Currency Unite, has been created in ASEAN+3. When there is common peg to ACI in ASEAN+3 economy, the CLV will change to peg ACI and they can create their own subà ¢Ã¢â€š ¬Ã‚ regional common currency in lower level to increase their voice in ASEAN cooperation, in addition to the benefit for Exchange rate regime. However, some scholar suggests this option is difficult to achieve at least in short and medium term because there are many political sensitive issue to overcome, weak institution, and flexibility of people. In summary, in order to cooperate with each other so as to deà ¢Ã¢â€š ¬Ã‚ dollarize their economy CLV countries has to two choices of Exchange rate regime and single currency. Those policies are only achievable when CLV countries have strong foundation of cooperation in critical are such economic consolation and information sharing, joint assessment and so on. They can more benefit from this cooperation rather than taking action individually however it is only longà ¢Ã¢â€š ¬Ã‚ term goal for them. In prospect there is still possibility to get out dollarization when CLV are determined enough in cooperation. MC#5: Dollarization and Implication of Financial Architecture Reform Cambodia among CLV is solely dollarized countries in the world which face the problems. Dollarization is the common problem in developing countries such as Latin America also. Thus the case of dollarization in Cambodia can also reflect the situation of the change of financial architecture that affect the financial and monetary system in the world. Dollarization is the symptom of weak ability of domestic financial structure, historical price in stability and political problems urges people to use foreign currency. While the government the seigniorage benefit and role of last resort of lender the people enjoy the stability of money in deposit as well as trade and investment. Rooted from the globalization there are three main debates in global financial system: Does dollarization good for developing country? Should states liberalize people choice in using currency they like or impose people to choose national fiat money? Should IMF play important role in the world exchange rate stability? Does dollarization good for developing country? Dollarization can give price and exchange rate stability in low cost in most emergence market economy. Hanke recommend developing countries to use dollarization in case that the states do not have strong monetary and fiscal policy to tighten currency value in long term should use dollarization as monetary institution. The above idea is not raised by him alone some scholar also propose choice of dollarization because of several reasons. First, considering the financial and dept crisis during 1980s and 1990s in much part of the world and thus leads to increase of high inflation, currency devaluation and mass capital outflow by foreign investors. When developing country dollarization they can stabilize the currency, exchange rate. When those countries use a high confident and good quality currency like dollar in economy is no possibility of a sharp depreciation, and sudden capital outflows because of investor unconfident is also omitted. Second, dollarization can highly reduce transaction cost and integrate developing economy closer to US. Thirdly, the stability of dollar in the economy as currency in developing countries will encourage people to save more and foreigner to invest more. However, dollarization is costly. Government of developing countries need to scarify seigniorage benefit in dollarized economy and the Central bank losses its role of lender of last resort to the commercial bank in case there is liquidity problems. Moreover, the states will lose its sovereignty in term of monetary policy and exchange rate policy. Thus, it is a critical decision to whether or not to dollarize in developing countries because they have to compare the benefit of dollarization the cost to bear it as well as balancing the internal risk with external risk. Should states liberalize people choice in using currency they like or impose people to choose national fiat money? According to Laurence H. Meyer, a member of the Board of Governors of the Federal Reserve System when there is more global financial integration the government should increase role in market discipline, regulation and also supervision in money and also exchange rebate. The states should improve the international capital standard, market discipline. The state has monopolized the authorization on Money discipline by introduces national currency to show the selfà ¢Ã¢â€š ¬Ã‚ help system in term of currency and also gains seigniorage benefit. However, Randal Krozner, an economist at the University of Chicagos Graduate, rejects the role of government in currency circulating. He claim that private regulation found in private actors such as clearing house, credit rating agency, trader, capitalist investor, and others has provided stability and innovation because they work closely to financial and currency market. He advises that the government should reduce the intervention in the financial and monetary system and let the dynamic private sector to regulate the system. In short, while some scholar support government role in regulation the currency market, some ot