Issues in International Human Resouce Management

Question: Portray about the Issues in International Human Resouce Management. Answer: Presentation Human asset the board is a methodology that permits business associations in dealing with their workforce and upgrading their presentation utilizing different capacities, for example, execution the executives, preparing and advancement, remuneration and advantages, vocation improvement, and so forth. The fundamental thought behind human asset the board is to improve the relations among representatives and businesses and to improve the work conditions for the representatives to accomplish most extreme yields. After the spread of globalization, business associations all through the world are contending on a worldwide scale and they can't straightforward depend upon their procedures or assets to accomplish showcase abilities as they can be effectively duplicated. Business associations are presently depending upon their HR and contributing a huge number of dollars to create them with the goal that their HR can help them in accomplishing market skills. Human asset the executives can be separated into two unique classes: Residential Human Resource Management it is a methodology which is trailed by organizations that have their working tasks in a solitary nation. Household human asset the executives is less confounded as it includes the administration of workers having a place with one country alone (eduCBA, 2016). Global human asset the executives it is a methodology that is trailed by worldwide organizations that have their activities running in various nations. Worldwide human asset the board is much more confused than local human asset the executives as it includes the executives of representatives having a place with assorted social foundations. It incorporates the executives of decent variety, ostracizes, and so on which makes it progressively entangled and significant simultaneously (Whatishumanresource.com, 2016). Case Background Aware Technology Solutions Corp Company is an association that offers innovation related answers for its customers. The organization was begun in 1994 and has its central command situated in the United States of America. The organization has a rough workforce of 244,300 representatives. Aware Company is a market head in the business and has been getting a ton of requests for its administrations in the ongoing occasions. Therefore, the organization has thought of opening up new endowments in contrast nations and grow its business further. The administration of the organization has concluded that it would open up 3 new auxiliaries inside a time of 5 years while the first auxiliary would be opened up in Quite a while so as to exploit economies of scale. Insightful Company has an extremely productive human asset the board office that has had the option to select, draw in and hold an enormous pool of ability by giving amazing work conditions to them however the experience of the division has just been in the administration of household HR. The human asset the board branch of the organization has less involvement with the administration of HR at a worldwide level and individuals originating from different foundations. Further, the organization has likewise concluded that it would need it auxiliaries to need to same work culture which is available in the central station and to accomplish such an objective, the administration has chosen to send a group of 43 exiles to the Indian auxiliary so as to care for the business and build up the parent culture of the organization in the new auxiliary. In this manner, the exile program has become another significant zone of worry for the human asset division of the organization. In this task, we wi ll talk about some significant human asset the board gives that the association will confront while attempting to grow its procedure on remote nations. Human Resource Management Issues Let us talk about the issues identified with the administration of HR that the administration of Cognizant organization will confront while attempting to grow its tasks in a remote nation: Enlistment And Selection enrollment is the way toward distinguishing human asset opening inside an association when the application structures for that post have shown up while determination is a procedure of screening contender to locate the best fit for a specific activity opportunity. Enrollment and choice are one of the most significant capacity for the human asset of any association as they help an association in satisfying the requests of the human asset that are recognized over some undefined time frame. In the event that an association doesn't enroll and chooses new applicants, at that point the association would consistently feel a lack of HR and would not have the option to work appropriately. Enlistment and determination turns out to be extremely perplexing when it must be accomplished for an association that is extending its tasks to a remote nation. As Cognizant organization is wanting to extend its business activities by beginning another auxiliary in the Indian market, it will confront various enlistment and choice issues on the grounds that there is a ton of contrast between the lawful and social approaches of the parent and the host nation. The organization should, as a matter of first importance, select a staffing approach for its Indian auxiliary. Aware organization can go for polycentric, geocentric, ethnocentric or regiocentric approach. Ethnocentric methodology includes staffing of home nation workers at higher situation in the host nation. Polycentric approach includes staffing of host nation workers for a wide range of posts. Regiocentric approach includes staffing of representatives having a place with a specific area at a wide range of posts while geocentri c methodology includes staffing of workers having a place with any piece of the world at a post (Study.com, 2016). As talked about over, the organization has an away from of building up its parent culture in the auxiliary. Consequently, it should go with an ethnocentric methodology. The administration of the organization should 'deal with Indian work laws and expense liabilities. It would not be workable for the organization to set up the whole Indian auxiliary with home nation nationals as it would not be financially savvy and even the Indian government would not permit the organization to work on its territory except if it gives business chances to the Indians. Hence, so as to work in India, the organization should comply with the business decides that the Indian government will advance (Smallbusiness.chron.com, 2016). Exile Management A global organization can have three sorts of representatives working for it: Home nation nationals these are the workers who have a place with a similar nation where the base camp of the organization are found. Host nation nationals these are the workers that an organization initiates from the nation where it is wanting to grow its business or open up another auxiliary. As it were, these are the workers that have a place with the nation where the organization is extending its business. Third nation nationals these are the representatives who neither have a place with the host nation nor to the nation of origin. These representatives have a place with a third nation and are enlisted based on some uncommon ability or aptitudes which are required by the organization to run its tasks. Ostracizes is a term utilized for those representatives who are sent to remote areas for satisfying the undertakings doled out to them by the home office. The board of ostracizes has been distinguished as perhaps the greatest issue for the organizations who have worldwide tasks (Bowman and Meacheam, 2000). The organization should choose a group of ostracizes, which is one of the most troublesome errand. The organization should put a great deal of assets in sending the exiles for a remote task as they need to furnish the ostracizes with lodging remittances, clinical stipends, difficulty recompenses, travel recompenses, and so forth and furthermore need to care for the groups of the workers sent on an outside task. On the off chance that such workers bomb in satisfying the motivation behind their remote assignments, the organization misfortunes a great deal of its significant assets. It is likewise hard for the organization to keep its ostracizes persuaded. It has additionally been sees that the majority of the ostracizes bomb in their remote assignments due to their powerlessness to alter in the host nation culture and without specialized capacities. In the event that an ostracize fizzles and is repatriated to the nation of origin, it decreases the spirit of the association and the gene ral efficiency endures as well. In this way, the administration of exiles is a significant worry in universal human asset the executives as the organizations need to choose the best individuals with the goal that they don't squander their assets and ventures (Selmer and Suutari, 2011). Managing Cultural Diversity The executives of culturally diverse assorted variety has likewise been perceived as one of the most concerning issues for universal human asset supervisors. Clearly when an organization begins a worldwide business auxiliary, it will set up its auxiliary with home nation nationals just as host nation nationals. When there are noteworthy contrasts in the social foundations of the two nations, it turns out to be extremely hard for the human asset the board of the organizations to manage the social decent variety that begins to exist in the working environment (Smallbusiness.chron.com, 2016). At the point when Cognizant Company would begin its activities in India, the representatives chose from India and ostracizes sent from America should work connected at the hip with one another. As they have distinctive social foundations, cooperating would imply that they should adjust to new styles of working, better approaches for speaking with one another and getting comfortable with every others social practices, which is more difficult than one might expect as social issues have been distinguished as one of the prime explanations behind the disappointment of ostracize programs. It has been seen in various cases that when individuals having a place with assorted foundations are presented to wor

Building Flexibility Into Contracts Free Essays

The fundamental method of reasoning for building adaptability into a re-appropriating contract depends on the reason that factors both inside and remotely may change and in this manner sway the accomplishment of the ideal destinations of the re-appropriating. For instance, the inward prerequisites of the sourcing association may change during the re-appropriating contract or another provider in the gracefully market may accomplish an innovation forward leap, which permits it to acknowledge noteworthy execution enhancements. In the last case, the foundation of a drawn out agreement with a contending provider keeps the sourcing association from getting to the predominant abilities of this provider. We will compose a custom article test on Building Flexibility Into Contracts or on the other hand any comparative theme just for you Request Now Along these lines, fusing components into an agreement that make adaptability can guarantee that the ideal advantages are being accomplished from re-appropriating and specifically, guarantee that the sourcing association isn't secured in a relationship with an uncompetitive provider. Similarly, incorporating adaptability with contracts helps associations in profiting by the outsourcers’ cost enhancements as they happened, keep away from claims and hide any hint of failure later on. Approaches to Build Flexibility into Contracts McIvor (2005) related that adaptability can be accomplished through either fragmented or impetus contracts. Deficient contracting makes a circumstance wherein parts of the agreement can be renegotiated dependent on changes in conditions. It is for the most part worried about streamlining after some time, trying to limit the expenses of adjusting to the continually changing states of the financial condition. There are various strategies fusing adaptability into an agreement through deficient contracting like value adaptability, renegotiation, contract length and early end (Langfield-Smith, Smith and Stringer, 2000). Value adaptability permits costs to be renegotiated as conditions change during the agreement. Fusing value adaptability implies that every single future possibility don't need to be completely considered at the start, as the purchaser and provider know that costs can be acclimated to reflect changes in conditions. For instance, changes in the prerequisites of the sourcing association during the agreement may require an alteration in costs. In renegotiation, components are consolidated into the agreement that take into account renegotiation dependent on changes in the business condition. The agreement may incorporate explicit provisos under which renegotiation ought to happen including fixed schedule dates or changes in financial files. Renegotiation regularly includes renegotiating more than cost and can likewise concentrate on the footing of agreement. The work of shorter agreements can be utilized to accomplish adaptability. Toward the finish of the agreement time frame another agreement can be arranged that mirrors the present conditions both inside and remotely. Instead of have the five-to seven-year agreements of the most recent decade, contracts are presently being broken into reasonable time allotments which have short starting terms and choices for expansions. Barely any associations can foresee their necessities with any conviction over long time spans, along these lines it is reasonable to have adaptability over the agreement duration. A provision might be fused into the agreement that sets out the conditions under which the agreement might be ended. The exclusion of such a condition can bring about extensive punishments in case of the agreement being ended rashly. Motivating force contracting, then again, includes consolidating systems into the agreement that permit the provider to share any cost reserve funds or benefits produced through the redistributing relationship (Dimitri, Piga and Spagnolo, 2006). Exploiting a contractor’s general goal to augment benefits by allowing it the chance to gain a more prominent benefit on the off chance that it plays out the agreement productively lies at the center of motivating force contracting. The pith of said contracting type is the exertion by one individual or association (the head) to prompt and prize certain practices by another (the specialist). It has been the subject of extensive conversation in the financial aspects writing, as motivating force contracts are regularly utilized to empower execution upgrades in the re-appropriating course of action in territories, for example, cost decrease and administration levels (Bolton and Dewatripont, 2005). This sort of agreement animates the contractual worker to restrict costs by leaving him a small amount of cost investment funds, and yet it repays him some cash if there should arise an occurrence of cost invade. The agreement will incorporate systems that guarantee the provider shares any investment funds that are acknowledged from execution enhancements. Boost can make a progressively helpful connection between parties, defeating the customary ill-disposed way to deal with contracting. The reason for the motivators isn't simply to propel the contractual worker yet to tie execution of all members to the contract’s goals. The best possible utilization of a motivation contract adjusts the needs of agreement members who might somehow or another have different thought processes. Potential Risks of Building in Too Much Flexibility Nowhere is the potential exchange off among control and adaptability more obvious than with regards to structuring the agreement. Similarly as with anything that is excessively, there are potential dangers of working in an excess of adaptability into contracts. By having a lot of agreement adaptability, momentary crafty conduct is almost certain, which is the reason traditional lawful agreements evacuate adaptability by working in however much legitimately enforceable control as could be expected that shields the two gatherings from such conduct. As for fragmented contracting, issues emerge when any understanding is haggled under states of inadequate or awry data, hazard and vulnerability. It has likewise been related with certain authoritative expenses, as it should be updated or renegotiated as the future unfurls. John (2000) recognizes three such sorts of costs: ex post expenses of wrangling over the conditions of the modified agreement upon renegotiation; those identified with wasteful understandings brought about by hilter kilter data; and ex risk expenses of not putting resources into connection explicit interests in dread of experiencing ‘hold-up’ conduct upon contract renegotiation. Since it is difficult to compose a total agreement that indicates what the operator is required to do in all possibilities, legitimate point of reference is utilized to decide commitments of the contracting parties that are not unequivocally composed into an agreement. Natural authoritative structures have the bit of leeway that there is an abundance of lawful point of reference concerning them. Along these lines, questions are probably going to be settled rapidly. Progressively outlandish authoritative structures, for which there are scarcely any legitimate points of reference, are increasingly inclined to exorbitant and rancorous lawful debates (Aghion and Bolton, 2002). Further, fragmented contracting debilitates both connection explicit speculations and worth upgrading understandings. With regards to motivator contracting which works on the hypothesis of the carrot and the stick (there’s a monetary carrot for a provider for superior to conceded to quality, dependability, conveyance or execution and a money related stick for more terrible than concurred on levels of those parameters), the guideline is appealing yet the training is another issue. Providers are hesitant to acknowledge money related punishments, particularly for dependability targets are not reached, and clients are hesitant to stretch out monetary motivating forces to providers whenever conceded to targets are not met. In motivator getting, the risks’ sum, likelihood, and effect are central point impacting the plan of the agreement since the primary reason for this is moving the dangers. Too, there are a few restrictions to motivation contracting, as it relies upon a buyer with the capacity to indicate execution, the chance of important execution gauges that can be recognized, settled upon and actualized, the presence of assets to administer and screen execution, and the viable capacity to make a move, including supplanting the temporary worker, where execution is unacceptable. The front pages give too-visit delineation of the manners by which contract motivating forces planned by the best and most benevolent specialists may yield unintended antagonistic results. Motivations can redirect consideration from other significant objectives, work excessively well on their own terms, or empower twisted announcing. WORKS CITED 1. Aghion, P. Bolton, P. (2002). On Partial Contracting. European Economic Review. 46, 745-753. 2. Bolton, P. Dewatripont, M. (2005). Agreement Theory. Massachusetts: Massachusetts Institute of Technology. 3. Dimitri, N. , Piga, G. Spagnolo, G. (2006). The Handbook of Procurement. New York: Cambridge University Press. 4. Langfield-Smith, K. , Smith, D. Stringer, C. (2000). Dealing with the Outsourcing Relationship. Australia: University of South Wales Press, Ltd. 5. McIvor, R. (2005). The Outsourcing Process: Strategies for Evaluation and Management. New York: Cambridge University Step by step instructions to refer to Building Flexibility Into Contracts, Papers

The Eight Best Online Loan Calculators

The Eight Best Online Loan Calculators The Eight Best Online Loan Calculators The Eight Best Online Loan CalculatorsThere are a lot of great loan calculators online. We did the research and brought you back our favorites.Applying for any kind of loanâ€"sadlyâ€"means doing a lot of math. You have to do stuff like calculate annual percentage rates (APRs) and figure out how your monthly payment will be affected by the length of your repayment term. With some loans, you even have to factor in taxes and insurance.Heck, getting answers on your student loan payments might as well require you to go to school to figure it outâ€"which would then mean taking out yet another student loan to pay for it!(We’re joking about that last one. But only slightly.)However, just because you have to do some math, doesn’t mean you have to do it all on your own. There are lots of great loan calculators available online that ask for your basic loan info and then do the hard part (read: the math part) for you.This is why we combed through a ton of online offerings before settling on the best, most usable loan calculators that we could find.Here’s what we recommend.1. Personal Loan Calculator  Bankrate.comBankrate.com  (@Bankrate) is a great website that lets you compare rates on a whole bunch of different loans,  credit cards, and other financial products. And to help you do that, they offer a sleek, simple  loan calculator  that’s a cinch to use. It can be used for any kind of loan, including  mortgages  and  auto loans, but there are lots of auto and mortgage specific calculators out there that offer more specific features.We recommend using this one for standard  personal loans. The pie-chart feature that shows how much you’ll pay in interest versus the rest of your balance is a lovely touch.2. Auto Loan Calculator  Cars.comI know. You’re absolutely  shocked  that a site like  Cars.com  (@carsdotcom) would offer one of the best  auto loan calculators. We know. We’re surprised too. In all seriousness, though, this is a great calculator that includ es lots of car-specific data points. For instance, when you’re buying a car, you’re probably going to get hit with sales tax. So this calculator lets you enter that tax rate in, giving you a full picture of how much you’re paying. It even has a feature where you can estimate and factor in the value of your trade-in.Nobody likes being hit with surprise fees and taxes, so the Cars.com calculator makes sure you get as clear a snapshot as you can before actually applying.3. Mortgage Loan Calculator  Zillow.comIf you’ve spent any amount of time shopping for a house, apartment, or condo, then you’re probably familiar with  Zillow.com  (@zillow), one of the leading real estate listing sites. To help prospective homebuyers, they’ve created a  mortgage loan calculator  that gives you a  lot  of informationâ€"without getting busy or hard to use.There’s a basic version of the calculator where you can enter cost, down payment, APR, and term-length to get a broad  overview of your loan, and then a more advanced version where you can enter in property tax, home insurance, and HOA dues. The calculator is geared around your expected monthly payment, which it breaks down into its various parts, letting you see how much you’re paying each month in principal and interest, taxes, insurance, and HOA fees. The calculator not only provides you a full  amortization  schedule as well, it even pops that information into a handy-dandy graph!4. 5. Debt Snowball/Avalanche Calculators  Undebt.It    Unbury.MeWhen you’re making a plan to pay down your existing debt, you’re probably choosing one of two methods. Either you’re focusing on paying off the debt with the lowest balance first, also known as the “Debt Snowball” method, or you’re making your highest-interest debts your top priority, better known as the “Debt Avalanche” method.No matter which method you choose, you’re going to need a calculator to help you make a plan of attack. Luckily, there are a ctually  two  really great calculators out there that will help you with both methods. They’re offered by  Undebt.It  (@undebt_it) and  Unbury.Me  (@unburyme). Neither calculator is super fancy because they don’t need to be. They walk you through the debt organization process and give you a clear picture of how long it will take you to become debt free, how much you’ll be paying each month, and how much you’ll pay in interest along the way.If you want to learn more about the debt snowball and debt avalanche methods, you can check out our blog posts:Want to Get Out of Debt? Then Let It Snow(ball)!Sweep Away Your Debt With a Debt Avalanche6. Federal Student Loan Calculator  StudentLoans.Gov  If you have federal student loans, then why not use the federal government’s  loan calculator  to help you repay them? The best part about their calculator is that you can log into the  StudentLoans.gov  (@FAFSA) website and it can instantly access all the info for your outstanding loan s. No more typing all of your info into the fields. It also gives you payment plans, estimates, and projected loan forgiveness based on what type of repayment plan you’ve selected or are eligible for.To learn more about student loan forgiveness, check out our blog post:Student Loan Forgiveness7. Private Student Loan Calculator  StudentLoanHero.comIf you have a mixture of private  and  public loans, then we recommend checking out the calculators offered by  StudentLoanHero.com  (@StudentLoanHero), a website created to help people organize, manage, and repay their student debt. They have  20 different calculators, most of which are designed for different aspects of student debt, both private and public, including calculators that will help you with consolidation and refinancing.To learn more about student loan consolidation, check out our blog post:The OppLoans Guide to Consolidating Student Loan Debt8. Payday Loan Calculator  CSGNetwork.comBefore taking out a  payday loan, you sh ould know what you’re getting yourself into. Because, while the interest rates for these short-term,  no credit check  loans might seem reasonable, their APRs show you just how expensive they are compared to other types of loans. That’s why, when you’re considering taking out a payday loan, you should  always check the APR first. But don’t worry, all you need is the principal amount you’re borrowing, the length of your repayment term, and the interest charge, which might be referred to as a “loan fee”. (Unlike other loans, payday loans are designed to be paid back in a single, lump-sum payment, which means that interest is often charged as a flat fee, rather than an ongoing rate.)Once you have that information, you can visit  this payday loan APR calculator  provided by  CSGNetwork.com. The calculator might not look like much, but it’ll get your APR calculated lickety-split. And once you see how expensive your loan is, you might consider looking for something a littl e more affordable. Might we suggest an  installment loan  from  OppLoans?Do you have an online loan calculator that you like to use? Let us know! You can  email us, or you can shoot us at tweet at  @Opploans.

What is Sleep Deprivation - Free Essay Example

Sample details Pages: 2 Words: 749 Downloads: 5 Date added: 2019/08/07 Category Health Essay Level High school Tags: Sleep Deprivation Essay Did you like this example? Sleep deprivation is the lack of the usual requirement of sleep we need as humans. Sleep deprivation results in problems with your health such as an immune system shortage where as your immune system doesnt fight off illnesses as well. Sleep is needed for body functioning and homeostasis maintenance. Don’t waste time! Our writers will create an original "What is Sleep Deprivation?" essay for you Create order The required amount of sleep needed to stay alert is efficiently eight hours, although you can still perform activities with less than eight hours. When having SD, you can repeatedly fall asleep throughout the day. The risks of injury or accidents on the road increases because you are not fully aware of your surroundings because of how tired you are. To fix your sleep deprivation, you must sleep off the amount of sleep you lost. As a teen, having sleep deprivation can affect you in many ways, including, not focusing on the road while youre driving, which can cause a wreck. You will have a poor attitude and possible mood swings. Getting enough sleep can help you in so many ways. WHAT CAN YOU DO TO GET ENOUGH SLEEP? To get enough sleep, do not nap during the day. It will make you less tired at night and you wont be tired enough to fall asleep. When you are about to go to bed, I advise you to turn your phone off, or put it on do not disturb, because I know how easy it is to get distracted and look at the time and five more minutes turns into the two hours of sleep you couldve had extra. When trying to get enough sleep, avoid any types of caffeine, alcohol, and nicotine, which are all bad for you anyways. Even though having a caffeine buzz can cause you to fall asleep, it disrupts your sleep cycle and interacts with the sleep you should be getting. Limit the food you eat and drinking before going to sleep because digestion can interfere with sleep. Going out into the sunshine can increase your melatonin release, allowing your brain to shut down as your falling asleep. WHY IS IT IMPORTANT FOR TEENS TO SLEEP MORE? Teenagers need about 8-10 hours of sleep every night, but most teens get about 7 hours of sleep every night which is less than efficient for their needs. Most teenagers are going through puberty, and their hormones release melatonin throughout the day which makes them fall asleep frequently. If sleep deprivation comes to teens during school days, it can cause lack of memory, mood swings, slow reaction time, and negatively affect performance. Getting more sleep reduces the chance of being overweight and getting obesity. If you try too hard to catch up on your sleep on the weekend, your chances of gaining weight increases. People with sleep disorders will most likely get depression because of their lack of sleep. Not getting enough sleep is the worst thing you can do for your health because it can cause so many problems that you dont need. As a teenager, you need as much sleep as you can get because your body is constantly changing an you need to stay energized so your body can function right. WHAT CAN HELP YOU STAY HEALTHY? I advise you to go to sleep at a good time, so you can get eight hours of sleep and be well rested for the upcoming day ahead of you. When driving, it is very dangerous is you are tired because you might accidentally fall asleep and get in a wreck, which can affect you and the their lives around you. Approximately 100,000 crashes a year occur due to drowsiness driving, which is not good at all. So please, before you go off on the road, make sure you are fully rested so you do not harm yourself or other drivers. Getting enough sleep is a very good idea for all teens, it will keep you going throughout the day, and keep you fully energized at all times. On Sunday, before you start the long week of school, you need to establish a bedtime routine so you can get used to it throughout the week and stay energized and healthy. You can sleep in on the weekend, but do not go over 2-3 hours than normal. Make sure you do not nap more than 30 minutes during the day because you will not be able to fall asleep at night. If you follows these steps and take them into consideration, you can avoid sleep deprivation and live a happy, healthy lifestyle.

Analysis Of The Book One Flew Over The Cuckoo s Nest

Book: One Flew Over the Cuckoo’s Nest It Says... I say... And So... â€Å"A success, they say, but I say he’s just another robot for the Combine and might be better off as a failure†¦Ã¢â‚¬ (17). The mental institutions way of helping people is by â€Å"fixing† them, which means drugging them so they are like robots. The word â€Å"robots† has significance because a robot is not able to think for themselves, and is just controlled by whomever.It robs the patients a chance at actually improving their mental health, so they can be a part of society again. In addition, the phrase â€Å"a success† means that the unawareness and inability for one to think for themselves is key for the staff to be able to handle the patients. Patients are trapped in their own mind. Lastly, the use of Kesey’s informal language gives us a vivid perspective from the shoes of the patients. The theme of unawareness occurs because it is encouraged by the staff in the hospital. Eventually, the patients may get tired of being a robot, and rebel against the staff. In addition, we see a pattern of the patients having no say into what goes into their body, or are misinformed about the potential dangers of the medicine. Not having a say can make one lose purpose in their life, and see no reason to improve themselves daily. Very much like today, medical experts are quick to prescribe medicine that has terrible side effects. â€Å"...The staff usually don’t even notice me; I move around in my chores and they see right through me like IShow MoreRelatedOne Flew Over The Cuckoos Nest Speech Act Theory Essay1281 Words   |  6 PagesKen Kesey forms the intricate relationships among the characters in the novel One Flew Over the Cuckoo’s Nest by the unique use of perspective and speech. Throughout the novel, Kesey depicts this connection between the public world and the seemingly closed off society inside the mental institution. This creates two separate spheres separated by a few walls and doors. Kesey goes on to form a unique perspective in the novel, told by a paranoid schizophrenic, with the narrator’s caricature-like

Public Ruling Free Essays

string(75) " lift and cleaning services of the building and area outside the building\." INLAND REVENUE BOARD MALAYSIA INCOME FROM LETTING OF REAL PROPERTY PUBLIC RULING NO. 4/2011 Translation from the original Bahasa Malaysia text DATE OF ISSUE: 10 MARCH 2011 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA CONTENTS 1. We will write a custom essay sample on Public Ruling or any similar topic only for you Order Now 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 11. 14. Introduction Related provisions Interpretation Letting of real property as a business source Letting of real property as a non-business source Commencement date of letting of property All real properties grouped as a single source Expense relating to income of letting of real property Rental income received in advance Capital allowance Industrial building allowance Replacement cost of furnishings Letting of part of building used in the business Effective Date Page 1 1 1 1-4 4-5 5-7 7 – 13 13 – 19 19 – 22 22 – 25 26 26 26 26 DIRECTOR GENERAL’S PUBLIC RULING A Public Ruling as provided for under section 138A of the Income Tax Act 1967 is issued for the purpose of providing guidance for the public and officers of the Inland Revenue Board Malaysia. It sets out the interpretation of the Director General of Inland Revenue in respect of the particular tax law, and the policy and procedure that are to be applied. A Public Ruling may be withdrawn, either wholly or in part, by notice of withdrawal or by publication of a new ruling which is inconsistent with it. Director General of Inland Revenue, Inland Revenue Board Malaysia. INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 1. This Ruling explains: (a) (b) Letting of real property as a business source under paragraph 4(a) of the Income Tax Act 1967 (ITA); and Letting of real property as a non-business source under paragraph 4(d) of the ITA. 2. The provisions of the ITA related to this Ruling are paragraphs 4(a) and 4(d), subsections 33(1) and 39(1). The words used in this Ruling have the following meaning: 3. â€Å"Arm’s length basis† refers to the circumstances, decisions or outcomes that would have been arrived at if unrelated or unconnected persons were to deal with each other wholly independently and out of reach of personal influence . â€Å"Real property† includes any land and any interest, option or other right in or over such land and includes any building on land. â€Å"Person† incl udes a company, a co-operative society, a partnership, a club, an association, a Hindu joint family, a trust, an estate under administration and an individual, but excludes a unit trust. Letting of real property† means granting the use of a real property or occupation of a real property under an agreement or a term of contract and includes the letting out of part of the real property that is owned or rented. â€Å"Management corporation† means a management corporation established under the Strata Titles Act 1985 (Act 318), the Land (Subsidiary Title) Enactment 1972 (Sabah No. 9 of 1972) or the Strata Titles Ordinance 1995 (Laws of Sarawak, Chapter 18). Rent† or â€Å"rental income† or â€Å"income from letting† includes any amount received for the use or occupation of any real property or part thereof including premiums and other receipt in connection with the use or occupation of the real property. â€Å"Related company† means the situation w here one company holds not less than 20% of the ordinary shares or preference shares of the other. 3. 3. 2 3. 3 3. 4 3. 5 3. 6 3. 7 4. Letting of real property as a business source 4. 1 Letting of real property is deemed as a business source and the income received from it is charged to tax under paragraph 4(a) of the ITA if Issue: B Page 1 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA maintenance services or support services are provided in relation to the real property. 4. 2 Maintenance services or support services should be comprehensively and actively provided. 4. 2. 1 Maintenance services or support services comprehensively provided means services which include: (a) doing generally all things necessary (eg. leaning services or repairs) for the maintenance and management of the real property such as the structural elements of the building, stairways, fire escapes, entrances and exits, lobbies, corridors, lifts/escalators, compounds, drains, water tanks, sewers, pipes, wires, cables or other fixtures and fittings; and doing generally all things necessary for the maintenance and management of the exterior parts of the real property such as playing fields, recreational areas, driveways, car parks, open spaces, landscape are as, walls and fences, exterior lighting or other external fixtures and fittings; or b) If a person only provides security services or other facilities, that person is not providing maintenance services or support services comprehensively. 4. 2. 2 Services actively provided means the person who owns or lets out the real property: (a) (b) provides himself; or hires another person or another firm to provide the maintenance services or support services as mentioned under paragraph 4. 2. 1 of this Ruling. Example 1: Suai Sdn Bhd owns three blocks of condominium consisting of 324 units and lets out those units to tenants. Suai Sdn Bhd provides maintenance services of lift, cleaning services, security services, centralized air conditioner and maintenance services of playing fields and car parks. The letting of the condominium units is treated as a business source of Suai Sdn Bhd since maintenance services and support services are comprehensively and actively provided by Suai Sdn Bhd. Issue: B Page 2 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA Example 2: Wahida owns a 4-storey building consisting of 32 units that can be used as offices and shop lots. All the units are let out to several tenants. Wahida hires Ali Enterprise to provide maintenance services of the structure of the building, maintenance of lift and cleaning services of the building and area outside the building. You read "Public Ruling" in category "Essay examples" The letting of the units in the building is treated as a business source of Wahida since maintenance services and support services are comprehensively and actively provided by Wahida. Example 3: Yes Property Sdn Bhd rents one block of office building consisting of 42 units from Zura Sdn Bhd. All the units are let out to a few tenants. Yes Property Sdn Bhd provides cleaning services of the building and area outside the building, centralized air conditioner, maintenance of car park and security services. The letting of the office units is treated as a business source of Yes Property Sdn Bhd since maintenance services and support services are comprehensively and actively provided by Yes Property Sdn Bhd. 4. 3 As long as maintenance services or support services are comprehensively and actively provided in relation to the real property which is let out, the letting is a business source under paragraph 4(a) of the ITA even though the letting is between related parties. However, if rental charged to the tenant is not at arm’s length basis, the Inland Revenue Board Malaysia would adjust the rental payment accordingly. For the purpose of this Ruling, â€Å"related parties† in relation to: (a) (b) (c) individuals, mean both individuals are related; companies, mean both companies are related companies; a company and an individual, mean one of the parties is in a position to influence or be influenced by the other party, or to control or be controlled by the other party. . 4 Special treatment for letting of a building to an approved Multimedia Super Corridor (MSC) status company Under the Income Tax (Industrial Building Allowance) (Approved Multimedia Super Corridor (MSC) Status Company) Rules 2006 [P. U. (A) 202/2006], effective from the year of assessment 2006, the letting of building in the Issue: B Page 3 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA Cyberjaya Flagship Zone to an approved MSC status company is regarded as carrying on a business and the income received from it is charged to tax under paragraph 4(a) of the ITA. The building let out: has to be a new building that provides a world-class physical and information infrastructure as determined by the Multimedia Development Corporation Sdn Bhd; must not have been occupied by any company prior to the year of assessment 2006; and does not include building for the purpose of living accommodation. 5. Letting of real property as a non-business source 5. The letting of real property is treated as a non-business source and income received from it is charged to tax under paragraph 4(d) of the ITA if a person lets out the real property without providing maintenance services or support services comprehensively and actively. Example 4: Unggas Property Sdn Bhd lets out one block of office building to a company. Unggas Property Sdn Bhd only provides security services. The letting of t he office building is treated as non-business source since Unggas Property only provides security services. Unggas Property Sdn Bhd does not provide maintenance services or support services comprehensively. Example 5: Azran Sdn Bhd lets out a 5-storey building to Aloy Sdn Bhd without providing any maintenance services or support services. The letting of the building is a non-business source since there are no maintenance services or support services provided by Azran Sdn Bhd. Income received from the letting is charged to tax as rental income under paragraph 4(d) of the ITA. Example 6: Facts are the same as in example 3 but maintenance services and support services are provided by Zura Property Sdn Bhd. The letting of the office units is treated as a non-business source of Yes Property Sdn Bhd since maintenance services and support services are not provided by Yes Property Sdn Bhd but are provided by Zura Sdn Bhd. Issue: B Page 4 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 5. 2 The letting of real property is also treated as a non-business source if a person lets out the real property and maintenance services or support services are passively derived from the ownership of the real property. Income received from the letting of the real property is charged to tax as rental income under paragraph 4(d) of the ITA. Example 7: Azrie owns 2 units of apartment and lets out those units to 2 tenants. The tenants are entitled to use the swimming pool, tennis court and other facilities that are provided in the apartment. All the facilities are provided and maintained by the management corporation of the apartment. Azrie only pays maintenance fees to the management corporation of the apartment. Services enjoyed by the tenants are merely an extension of Azrie’s right as proprietor of the apartment units and are not actively provided by Azrie. Therefore, the letting of the apartment units is a non-business source and the income received from it is charged to tax as rental income under paragraph 4(d) of the ITA. 6. Commencement date of letting of real property 6. 1 The date of commencement of letting of real property treated as a source of rental income under paragraph 4(d) of the ITA is on the date the real property is rented out for the first time. Example 8: Nora buys one unit of apartment on 1. 10. 2009. She renovates and advertises the letting of the apartment on 1. 1. 2010. The apartment is only let out on 1. . 2010. The letting of the apartment commences on 1. 7. 2010 i. e on the date it is rented out for the first time. 6. 2 The date of commencement of letting of real property treated as a business source under paragraph 4(a) of the ITA is on the date the real property is made available for letting. A real property is made available for letting when the real property is ready to be occupied by tenants and steps to l et out the real property have been taken such as advertising the real property for letting or appointing a real property agent to facilitate the letting. Example 9: Muhibbah Sdn Bhd purchases a 12-storey office building on 1. 1. 2010. The company advertises the letting of that building on 1. 4. 2010. The Company provides maintenance services of lift, cleaning services of the building and Issue: B Page 5 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA area outside the building, maintenance services of car park for that building and centralized air conditioner. The building is made available for letting on 1. 6. 2010 after renovation is completed. The building is only let out on 1. 8. 010. The company closes its account on 31 December every year. The letting of the building commences on 1. 6. 2010 i. e on the date the building is made available for letting. Example 10: Facts are the same as in example 9 but the building is only let out on 1. 1. 2011. The letting of the building commences on 1. 6. 2010 that is on the date the building is available for letting. Therefore expenses incurred in the production of rental income for the year of assessment 2010 are allowable and can be carried forward to the year of assessment 2011 (assuming that the company only has this rental business income). However advertisement expenses incurred on 1. 4. 2010 are not allowable since the expenses are incurred to obtain the first tenant. Example 11: Syazril Property Sdn Bhd owns a complex consisting of an office building in Block A and a shopping centre in Block B. The company provides comprehensively and actively maintenance services and support services in relation to the complex. The company advertises the letting of that complex on 1. 6. 2010. The office building in Block A is made available for letting and is let out on the same date i. 1. 7. 2010. Whereas the shopping centre in Block B is made available for letting on 1. 1. 2011 but is only let out on 1. 2. 2011. The company closes its account on 31 December every year. The letting of the office building commences on 1. 7. 2010. Whereas the letting of the shopping complex commences on 1. 1. 2011 i. e on the date it is made available for letting. Example 12: Kengo Sdn Bhd purchases a 10-storey office building in Kuala Lumpur, a shop ping complex in Johor Bahru and 5 units of shop house in Kota Bharu in the year 2010. Both buildings in Kuala Lumpur and Johor Bahru are let out and maintenance services and support services are comprehensively and actively provided in relation to those buildings. Whereas the shop houses are let out without maintenance services and support services. The date of advertisement, the date the real properties are made available for letting and the real properties are let out are as follows: Issue: B Page 6 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 Advertisement date 1. . 2010 1. 8. 2010 1. 9. 2010 Date available for letting 1. 9. 2010 1. 11. 2010 1. 11. 2010 Date of letting 1. 12. 2010 1. 1. 2011 1. 2. 2011 INLAND REVENUE BOARD MALAYSIA Real property Building in Kuala Lumpur Building in Johor Bahru Shop houses in Kota Bharu The commencement date of letting of the building is as follows: Real properties Rental business [paragraph 4(a)] Building in Kuala Lumpur Building in Johor Bahru Rental [paragraph 4(d)] Shop houses in Kota Bharu 7. All real properties grouped as a single source 7. Several real properties which are let out can be grouped as one source whether as a business source under paragraph 4(a) of the ITA or a nonbusiness source under paragraph 4(d) of the ITA. If a person lets out several real properties in a year of assessment and the letting of (a) (b) all real properties is a business source, all the real properties can be grouped as one business source under paragraph 4(a) of the ITA. all real properties is a non-business source, all the real properties can be grouped as one non-business source under paragraph 4(d) of the ITA. ome of the real properties is a business source and some is a nonbusiness source, income from both sources shall be assessed separately. The income from the business source and the nonbusiness source is assessed under paragraphs 4(a) and 4(d) of the ITA respectively. 1. 2. 2011 1. 9. 2010 1. 11. 2010 Date of commencement of letting (c) Issue: B Page 7 of 26 INC OME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA Example 13: AJ Sdn Bhd owns a 4-storey building in Damansara and a 6-storey building in Bangsar. Both buildings are let out since 2008 and the letting of the buildings is treated as a business source under paragraph 4(a) of the ITA. The gross income, allowable expenses and capital allowances on the furniture in each building for the year of assessment 2010 are as follows: Real property Gross income (RM) 60,000 10,000 70,000 Allowable expenses (RM) 14,000 12,000 26,000 Capital allowances (furniture) (RM) 7,000 3,000 10,000 Building in Damansara Building in Bangsar Total The letting of both real properties is a business source. Therefore, both real properties can be grouped as one business source under paragraph 4(a) of the ITA. The statutory income of AJ Sdn Bhd from the business of letting of real property for the year of assessment 2010 is calculated as follows: (RM) Gross income from rental Less: Allowable expenses Adjusted income Less: Capital allowances (furniture) Statutory income from rental Example 14: Margaret owns several real properties which are let out since 2008 and the letting of the real properties is a non-business source under paragraph 4(d) of the ITA. The gross income and allowable expenses for each real property for the year of assessment 2010 are as follows: 70,000 26,000 44,000 10,000 34,000 Issue: B Page 8 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 Gross income (RM) 12,000 9,000 24,000 1,500 46,500 Allowable expenses (RM) 3,000 11,000 8,000 1,800 23,800 INLAND REVENUE BOARD MALAYSIA Real property Terrace house Apartment Shop house Vacant land Total Statutory income of Margaret from the letting of real property for the year of assessment 2010 is calculated as follows: (RM) Gross income from rental Less: Allowable expenses Statutory income from rental Example 15: Theodore Lim buys an office building and a business building in Taman Anggerik, Ampang in August 2009. The purchases of both buildings are financed by a bank loan. The office building is rented out commencing from 1. 1. 2010 whereas the business building is only rented out on 1. 2. 2011. Income from the letting of both buildings is assessed as a business source under paragraph 4(a) of the ITA. The gross income and interest expense on loan for each building for the years of assessment 2010 and 2011 are as follows: Gross income (RM) Year of assessment 2010 Office building Business building 120,000 Year of assessment 2011 120,000 165,000 Interest expense (RM) Year of assessment 2010 45,000 55,000 Year of assessment 2011 40,000 50,000 46,500 23,800 22,700 Real property Issue: B Page 9 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA In the year of assessment 2010, the business building has not commenced as a source because no income has been generated yet. As such, the business building and office building cannot be aggregated as one source. Interest expense in relation to the business building amounting to RM55,000 is not allowed a deduction against the gross income from the letting of office building. The statutory income from rent for the year of assessment 2010 is computed as follows: (RM) Gross income from rental [paragraph 4(a)] Less: Interest expense Statutory income from rental 120,000 45,000 75,000 Note: If rental income from office building and business building is assessed as a non-business source under paragraph 4(d) of the ITA, the same tax treatment applies. In the year of assessment 2011, the business building can be grouped with the office building as one source as the business building constitutes a source once it has generated income. Although the business building is only rented out on 1. 2. 2011, the whole interest expense amounting to RM50,000 is allowed a deduction since the rental business source for the year of assessment 2011 exists from 1. . 2011. The statutory income from rent for the year of assessment 2011 is computed as follows: (RM) Gross income from rental (paragraph 4(a)) Less: Interest expense Statutory income from rental 285,000 90,000 195,000 Note: If rental income from office building and business building is assessed as a non-business source under paragraph 4(d) of the ITA, interest expenses in respect of the business building has to be adjusted acc ording to the period the building is let out. Therefore interest expense in respect of the period from 1. 1. 011 to 31. 1. 2011 is not allowable. Example 16: Facts are the same as in example 13 with an additional information i. e AJ Sdn Bhd owns and lets out a residential house and one unit of apartment. The Issue: B Page 10 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA letting of the residential house and the apartment unit is a non-business source since maintenance services or support services are not provided. The company is not an investment holding company. The gross income, allowable expenses and capital allowances on the furniture in each building for the year of assessment 2010 are as follows: Real property – paragraph 4(a) source Gross income (RM) 60,000 10,000 70,000 Gross income (RM) 8,000 6,000 14,000 Allowable expenses (RM) 14,000 12,000 26,000 Allowable expenses (RM) 11,000 4,000 15,000 Capital allowances (furniture) (RM) 7,000 3,000 10,000 Capital allowances (RM) – Building in Damansara Building in Bangsar Total Real property – paragraph 4(d) source Residential house Apartment Total The letting of buildings in Damansara and Bangsar is a business source. Therefore, those buildings can be grouped as one business source under paragraph 4(a) of the ITA. Whereas the letting of residential house and apartment is a non-business source and can be grouped as one non-business source under paragraph 4(d) of the ITA. The total income of AJ Sdn Bhd for the year of assessment 2010 is computed as follows: (RM) (i) Statutory income from rental – paragraph 4(a) [70,000 – 26,000 – 10,000] (ii) Statutory income from rental – paragraph 4(d) [14,000 – 15,000] Aggregate income/Total income Issue: B Nil 34,000 Page 11 of 26 34,000 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA The adjusted loss from non-business source amounting to RM1,000 cannot be deducted against statutory income from business of letting and is not allowed to be carried forward to subsequent years of assessment. 7. 2 If a person has a business source of letting of real property under paragraph 4(a) of the ITA and a business source from other businesses in the same year of assessment, the business source of letting of real property has to be separated from the other business sources. Example 17: Syarikat MJ Sdn Bhd (SMSB) is carrying on a business of hardware wholesaler. SMSB owns a 4-storey building which is let out and provides maintenance services and support services comprehensively and actively. SMSB also owns a terrace house which is let out without providing maintenance services and support services. Income from letting of the 4storey building qualifies to be assessed as a business source (paragraph 4(a) of the ITA) whereas rental income from the terrace house is assessed as a non-business source (paragraph 4(d) of the ITA) for the year of assessment 2010. The gross income, allowable expenses and capital allowances on plant and machinery for each source of income of SMSB for the year of assessment 2010 are as follows: Source of income Adjusted income (RM) Adjusted loss (RM) Capital allowances (plant and machinery) (RM) Business of wholesale Letting of 4-storey building (paragraph 4(a) of the ITA) Letting of terrace house (paragraph 4(d) of the ITA) 100,000 – 10,000 15,000 5,000 – 3,000 – Issue: B Page 12 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA The total income of SMSB for the year of assessment 2010 is computed as follows: (RM) (RM) (i) Business of wholesale (paragraph 4(a) of the ITA) Adjusted income Less: Capital allowances (plant and machinery) Statutory income (ii) Letting of real property (paragraph 4(a) of the ITA) Adjusted loss Capital allowances (plant and machinery) Statutory income (iii) Letting of real property (paragraph 4(d) of the ITA) Adjusted loss Statutory income Aggregate income Less: Current year loss Total income (3,000) Nil 85,000 10,000 75,000 (10,000) 5,000 Nil 100,000 15,000 85,000 Capital Allowances of RM5,000 in relation to the letting of real property under paragraph 4(a) of the ITA which cannot be absorbed in the year of assessment 2010 is carried forward to subsequent years of assessment. Adjusted loss from the letting of real property under paragraph 4(d) of the ITA amounting to RM3,000 cannot be deducted against the aggregate income and cannot be carried forward to subsequent years of assessment. 8. Expense relating to income of letting of real property 8. An expense wholly and exclusively incurred in the production of income under subsection 33(1) of the ITA and which does not fall under subsection 39(1) of the ITA is allowed as a deduction from income of business of letting of real property charged to tax under paragraph 4(a) of the ITA. Issue: B Page 13 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 8. 2 Expense which is allowed a deduction from income of letting of real property charged to tax under paragraph 4(d) of the ITA is the direct expense that is wholly and exclusively incurred in the production of income under subsection 33(1) of the ITA. Examples of direct expenses which are deductible from gross income of letting of real property are as follows: (a) Assessment and quit rent Annual assessment paid to the local authority and quit rent paid to the land office. b) Interest on loan Interest paid on loan taken to finance the purchase of real property which is rented out. (c) Fire insurance premium Fire insurance premium paid in relation to fire insurance policy taken on the real property which is rented out. (d) Expense on rent collection Rent collection fee and legal expense incurred to enforce rent collection. (e) Expense on rent renewal Expense incurred to renew tenancy or to change tenant. (f) Expense on repair Expense on ordinary repair to maintain the real property in its existing state. 8. Initial expense Initial expense is not allowed a deduction from income of letting of real property assessed under paragraph 4(a) or paragraph 4(d) of the ITA since that expense is incurred to create a source of rental income and not incurred in the production of rental income. Examples of such expense are cost to obtain the first tenant such as advertising cost, legal cost to prepare rental agreement, stamp duty and commission for real property agent. Example 18: Sarah Property Sdn Bhd buys an office building on 1. 9. 2009 to be let out. The company incurs RM600 to advertise the letting of the building on 1. 1. 2010 and legal cost amounting to RM1,800 paid to Reganathan Co on 12. 2. 2010 for preparing rental agreement. The building is let out commencing from Issue: B Page 14 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 1. 3. 2010 without providing maintenance services or support services. The letting of the office building is a non-business source and the rental income is taxable under paragraph 4(d) of the ITA. The advertising cost amounting to RM600 and the legal cost of RM1,800 are not allowed a deduction from income of letting of office building for the year of assessment 2010 as the expenses are incurred to obtain the first tenant. Example 19: Facts are the same as in example 18 except the building is made available for letting on 1. 2. 2010 and Sarah Property Sdn Bhd provides maintenance services of lift, security services, cleaning services and maintenance of centralized air conditioner. The letting of the office building is a business source and the rental income is taxable under paragraph 4(a) of the ITA. The advertising cost amounting to RM600 and the legal cost of RM1,800 are not allowed a deduction from income of letting of office building for the year of assessment 2010 as the expenses are incurred to obtain the first tenant. 8. 4 Expenses during a period the real property is not rented out 8. 4. 1 Expenses incurred in relation to a real property during a period it is not rented out are not allowable in calculating the adjusted income from the letting of the real property. However, if the period the real property is not rented out occurs after it has been let out and it is clear that it is ready to be let out, then expenses during that period are allowable subject to subsections 33(1) and 39(1) of the ITA. Example 20: Farhan lets out a double-storey terrace house on 1. 1. 2010 for RM1,000 a month. On 1. 9. 2010 the tenant moves out and the house is let out to another tenant on 1. 12. 2010 for the same amount of rental. Assessment for a year is RM500 while quit rent is RM50 a year. The letting of the house is a non-business source and the rental income is taxable under paragraph 4(d) of the ITA. The adjusted income from rent for the year of assessment 2010 is computed as follows: (RM) Rental income (gross) Period of 1. 1. 2010 – 31. 8. 2010 (8 x RM1,000) Period of 1. 12. 2010 – 31. 12. 2010 8,000 1,000 9,000 (RM) Issue: B Page 15 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA Less: Assessment Quit rent Adjusted income from rent 00 50 550 8,450 As a concession, assessment and quit rent expenses are allowable in full even though the house is not rented out for the period of 1. 9. 2010 to 30. 11. 2010. 8. 4. 2 If the letting ceases temporarily due to the following circumstances: (a) (b) (c) (d) repair or renovation of the building; absence of tenants for a period of 2 years after termination of tenancy; legal injuction or other official sanction; or other circumstances be yond the control of the person who lets out the real property; xpenses for the period the real property is not let out are allowable provided that the real property is maintained in good condition and is ready to be let out. Example 21: Sinar Ria Sdn Bhd owns a 4-storey building which is let out to Deena Holding Bhd since 2008. The letting of the real property is treated as a business source. Sinar Ria Sdn Bhd closes its account on 31 December every year. On 31. 12. 2010, the letting of the building ends. The company makes an effort to obtain a new tenant but only manages to let out the building to another company on 1. 4. 013 (absence of tenants for a period of 27 months). Expenses during the absence of tenants deductible. Therefore the expenses for 31. 12. 2012 are allowable. However the 1. 1. 2013 to 31. 3. 2013 are not allowed a exceeds the specified period of 2 years. for a period of 2 years are the period of 1. 1. 2011 to expenses for the period of deduction since that period Issue: B Page 16 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA Example 22: Syarafina owns 2 houses which are let out since 2009. The rental income is assessed as a non-business source under paragraph 4(d) of the ITA. The gross income and allowable expenses for each real property for the years of assessment 2010 and 2011 are as follows: Gross income (RM) Assessment , quit rent and interest expense (RM) Year of assessment 2010 3,550 2,500 Year of assessment 2011 3,550 2,500 Real property Year of assessment 2010 House I House II 1 Year of assessment 2011 12,000 -1 12,000 9,600 House II was not rented out as the local authorities had given an instruction to vacate the house from 1. 1. 2011 to 31. 12. 011 so that the hill slopes could be monitored after a landslide had occurred at a nearby area. The house was rented out again on 1. 1. 2012. The statutory income from rent for the year of assessment 2010 is computed as follows: (RM) Rental income (paragraph 4(d)) Less: Allowable expenses Statutory income from rental 21,600 6,050 15,550 The statutory income from rent for the year of assessment 2011 is computed as foll ows: (RM) Rental income (paragraph 4(d)) Less: Allowable expenses Statutory income from rental Issue: B 12,000 6,050 5,950 Page 17 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. /2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 8. 5 Expenses before real property is let out Expenses in respect of a period before the real property is let out is not deductible and have to be adjusted proportionately. Example 23: Michael lets out a shop house commencing from 1. 5. 2010 for RM2,500 a month. He pays annual assessment amounting to RM1,200, annual quit rent amounting to RM120 and fire insurance premium of RM600 for year 2010. The letting of the shop house is a non-business source and the rental income is taxable under paragraph 4(d) of the ITA. The adjusted income from rent for the year of assessment 2010 is computed as follows: (RM) Rental income (gross) Period of 1. 5. 2010 – 31. 12. 2010 (8 x RM2,500) Less: Expenses for period of 1. 5. 2010 – 31. 12. 2010 Assessment (8/12 x RM1,200) Quit rent (8/12 x RM120) Fire insurance premium (8/12 x RM600) Adjusted income from rent 8. 6 Restriction on interest expense If a person takes a loan for business purposes and to finance the purchase of real property that is let out, interest expense allowable against the business source has to be restricted under subsection 33(2) of the ITA. Interest expense on loan to finance the purchase of real property that is let out is deductible from rental income. Example 24: Azalea Property Sdn Bhd, a property development company closes its account on 31 December every year. On 9. 6. 2009 the company takes a loan of RM2 million from a bank for business purposes and to finance the purchase of a bungalow costing RM450,000. The company claims an interest expense of RM120,000 in the profit and loss account for the year assessment 800 80 400 1,280 18,720 20,000 Issue: B Page 18 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 2010. The bungalow is let out commencing from 1. 1. 2010 and income from letting of the bungalow is taxable under paragraph 4(d) of the ITA. Interest restriction is computed as follow: RM450,000 ——————- x RM 120,000 RM2,000,000 = RM27,000 The amount of RM27,000 is added back in arriving at the adjusted income from business of the company. However the company can claim interest expense of RM27,000 against income from the letting of the bungalow. Note: Since the cost of the bungalow does not exceed RM500,000, interest restriction under subsection 33(2) of the ITA is calculated based on the end-of-year balance in the balance sheets. 9. Rental income received in advance 9. 1 9. 2 Rental received in advance is treated as gross income for the basis period in which it is received. Where rental income received in advance is assessed in the basis period in which it is received, any expense incurred in relation to that rental income after that basis period is allowable in the basis period in which the income is assessed. Therefore amendment has to be done to the assessment for the year of assessment concerned. Example 25: Kelvin Ong lets out a double-storey terrace house for the period of 1. 1. 2010 to 31. 12. 2012. Rental for the three years amounting to RM36,000 is received in the year 2010. Expenses incurred on that house are as follows: Year ended Income/expenses 31. 12. 2010 (RM) Rental income Expenses 36,000 4,000 31. 12. 2011 (RM) 5,000 31. 12. 2012 (RM) 3,000 Issue: B Page 19 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA The adjusted income from rent for the year of assessment 2010 is computed as follows: Year of Assessment 2010 (RM) Rental income Less: Expenses Adjusted income Less: Expenses for a period ending 31. 12. 2011 Amended adjusted income Less: Expenses for a period ending 31. 12. 2012 Amended adjusted income 36,000 4,000 32,000 5,000 27,000 3,000 24,000 Expenses incurred in 2011 and 2012 are allowable against the rental income which is assessed in the year of assessment 2010. Therefore the assessment for the year of assessment 2010 has to be amended when the expenses are incurred in 2011 and 2012. . 3 In the case where there is more than one real property and rental income from one or several real properties is received in advance, expenses related to that source is deductible from other rental income in the basis period in which the expenses are incurred. This treatment is only applicable to rental income from real properties which are assessed as one source. Example 26: Fortune Sdn Bhd l ets out 2 buildings commencing from 1. 1. 2010. The company receives rental for 3 years amounting to RM300,000 in 2010 in relation to the first building. The second building is let out for RM10,000 a month. The letting of both buildings is treated as a rental source under paragraph 4(d) of the ITA. Income received and the allowable expenses for the building are as follows: Issue: B Page 20 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA Year ended First building Income (RM) Expenses (RM) 20,000 15,000 18,000 Second building Income (RM) 120,000 120,000 120,000 Expenses (RM) 30,000 30,000 30,000 31. 12. 2010 31. 12. 011 31. 12. 2012 300,000 – The adjusted income from rental for the years of assessment 2010 to 2012 is computed as follows: Year of assessment 2010 (RM) Rental income Less: Expenses Adjusted Income 420,000 50,000 370,000 2011 (RM) 120,000 45,000 75,000 2012 (RM) 120,000 48,000 72,000 Example 27: Facts are the same as in example 26 but the letting of the first building is treated as a business source under paragraph 4(a) of the ITA whereas t he letting of the second building is treated as non-business source under paragraph 4(d) of the ITA. The adjusted income from rental for the years of assessment 2010 to 2012 is computed as follows: Issue: B Page 21 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA Rental source under paragraph 4(a) of the ITA Year of assessment 2010 (RM) Rental income Less: Expenses Adjusted income Less: Expenses for a period ending 31. 12. 2011 Amended adjusted income Less: Expenses for a period ending 31. 12. 2012 Amended adjusted income 300,000 20,000 280,000 15,000 265,000 18,000 247,000 Expenses incurred in the years of assessment 2011 and 2012 are allowed a deduction from rental income which is assessed in the year of assessment 2010. Therefore the assessment for the year of assessment 2010 has to be amended when the expenses are incurred in 2011 and 2012. Rental source under paragraph 4(d) of the ITA Year of assessment 2010 (RM) Rental income Less: Expenses Adjusted income 120,000 30,000 90,000 2011 (RM) 120,000 30,000 90,000 2012 (RM) 120,000 30,000 90,000 10. Capital allowances 10. If the letting of real property is treated as a business source, capital allowances can be claimed on capital expenditure incurred on plant and machinery. The provisions in Schedule 3 of the ITA relating to capital allowances shall apply to the business of letting of real property. Issue: B Page 22 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 10. 2 If the letting of real property is treated as a business source and the letting of real property ceases temporarily due to the circumstances mentioned in paragraph 8. . 2 of this Ruling, capital allowances can still be claimed in respect of the period the real property is not let out provided the real property is maintained in good condition and is made available for letting. Example 28: Saravanan Sdn Bhd let out a shop lots building since 2008. The letting is treated as business source. On 1. 4. 2010 the building is repaired and cannot be occupied until 31. 5. 2010. The building is only let out again on 1. 6. 2010. Capital allowances claimed for the year of assessment 2010 is RM30,000. Even though the letting of shop lot building ceases from 1. . 2010 to 31. 5. 2010, the whole amount of capital allowances of RM30,000 can be claimed in the year of assessment 2010 since the letting ceases temporarily due to the repair of the building. Example 29: Harris Property Sdn Bhd owns a 5-storey building which is let out to Fetty Holding Bhd since 2007. The letting of the real property is treated as business source. Harris Property Sdn Bhd closes its account on 31 December every year. On 1. 3. 2010, the tenancy of the building ceases and Fetty Holding Bhd does not renew the tenancy. The building is left vacant until 31. 2. 2011 despite the efforts of the company to find a new tenant (including advertising the letting in several newspapers). Harris Property Sdn Bhd only manages to let out the building to another company on 1. 1. 2012 (absence of tenants for a period of 22 months). Capital allowances have been claimed since 2007. Even though the letting of building ceases from 1. 3. 2010 to 31. 12. 2011, capital allowances can be claimed in the years of assessment 2010 and 2011 since the letting ceases temporarily due to the absence of tenants for a period of less than 2 years. Example 30: Facts are the same as in example 29 except that the building is not let out until 31. 3. 2012. Harris Property Sdn Bhd only manages to let out the building to another company on 1. 4. 2012 (absence of tenants for a period of 25 months). Harris Property Sdn Bhd is eligible to claim capital allowances for the years of assessment 2010 and 2011. Harris Property Sdn Bhd is also eligible to claim capital allowance for the year of assessment 2012 if the letting of the building is treated as a business source for that year of assessment. Issue: B Page 23 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 10. 3 If there is a change in tax treatment of the letting of a real property from a business source under paragraph 4(a) of the ITA to a non-business source under paragraph 4(d) of the ITA in the basis period for a year of assessment, the person who lets out the real property has two sources of income from the same real property in that basis period, i. a business source under paragraph 4(a) of the ITA and a non-business source under paragraph 4(d) of the ITA. If as a result of the change: 10. 3. 1 a company becomes an investment holding company (IHC), the rental income (business source) would be assessed as income under paragraph 4(d) of the ITA. Therefore, the company is not entitled to claim for capital allowances on plant and machinery since they are not used for the purpose of a business at the end of the basis period for that year of a ssessment. 0. 3. 2 a company does not become an IHC, the company still derives rental income under paragraph 4(a) and 4(d) of the ITA in respect of the real property. Even though the company is not an IHC, the company would not be entitled to claim for capital allowances on plant and machinery since they are not used for the purpose of a business at the end of the basis period for that year of assessment. Note: The determination of whether a company is an IHC or not is explained in the Public Ruling No. /2011 (Investment Holding Company). 10. 4 If a company has a business source and a rental source (not necessary to determine whether an IHC or not since its main activity is not the holding of investments) and there is a change in tax treatment of the letting of a real property from a business source under paragraph 4(a) of the ITA to a nonbusiness source under paragraph 4(d) of the ITA in the basis period for a year of assessment, the company still derives rental income under paragr aph 4(a) and 4(d) of the ITA. The company would not be entitled to claim for capital allowances on plant and machinery since they are not used for the purpose of a business at the end of the basis period for that year of assessment. Note: In the case where capital allowances cannot be claimed, the residual expenditure of the plant and machinery will be reduced by notional allowances for that year of assessment and subsequent years of assessment. Example 31: Menara Sdn Bhd owns an office building consisting of 20 units and lets out all the units fully furnished since 2006. The letting is treated as a business source since maintenance services and support services are comprehensively and actively provided by Menara Sdn Bhd. Capital allowance have been claimed on the furnitures in the office building. Issue: B Page 24 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA However from June 2010, Menara Sdn Bhd did not provide maintenance services and support services. Menara Sdn Bhd closes its account on 31 December every year. Menara Sdn Bhd is not entitled to claim capital allowances on the furnitures in the office building for the year of assessment 2010 since the furnitures are not used for the purpose of a business at the end of the basis period for that year of assessment. Notional allowances will be deducted to arrive at the residual expenditure of the furnitures for the year of assessment 2010 and subsequent years of assessment. 0. 5 If more than one real property is let out and there is a change in tax treatment of any of the real properties from a business source under paragraph 4(a) of the ITA to a non-business source under paragraph 4(d) of the ITA in the basis period for a year of assessment, capital allowances can be claimed on plant and machinery for the real property which remains as a business source under paragraph 4(a) of the ITA. If there is a change in tax treatment of the letting of a real property from a non-business source under paragraph 4(d) of the ITA to a business source under paragraph 4(a) of the ITA in the basis period for a year of assessment, the person who lets out the real property has two sources of income from the same real property in that basis period, i. e a non-business source under paragraph 4(d) of the ITA and a business source under paragraph 4(a) of the ITA. Capital allowances can be claimed on plant and machinery in the real property since they are used for the purpose of a business at the end of the basis period for that year of assessment. For the purpose of computing capital allowances, the qualifying expenditure for the plant and machinery is the market value on the first day they are used in the business. Example 32: Teguh Sdn Bhd closes its account on 31 December every year and its main activity is the holding of investments. The company owns and lets out a fullyfurnished 10-storey office building. The letting is treated as a rental source under paragraph 4(d) of the ITA. From 1. 3. 2010 the company provides maintenance services and support services comprehensively and actively. The company is not an IHC in the year of assessment 2010 since the income from holding of investment is less than 80% of its gross income. Teguh Sdn Bhd is entitled to claim capital allowances on the furnitures in the office building for the year of assessment 2010 since they are used for the purpose of a business at the end of the basis period for that year of assessment. For the purpose of computing capital allowances for the year of assessment 2010, the qualifying expenditure for the furnitures is the market value on 1. 3. 2010. No initial allowance will be given. Issue: B Page 25 of 26 10. 6 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 11. Industrial building allowance 11. 1 If a person owns a building lets out the building and the building is in used as an industrial building, industrial building allowance can be claimed by the owner of the building even though the letting is a non-business source. If the letting of real property is given a special treatment as explained in paragraph 4. 4 of this Ruling, the owner of the building is eligible to claim industrial building allowances on the qualifying building expenditure incurred. 11. 2 12. Replacement cost of furnishings If the letting of a furnished real property is treated as non-business source, cost of replacing furnishings such as furniture and air conditioner can be claimed as a deduction from gross income from that letting. 13. Letting of part of building used in the business If a building, whether owned or rented, is used for business purposes and part of the building is let out, the rent arising from the letting is treated as part of income from the existing business source. 14. Effective date This Ruling is effective for the year of assessment 2011 and subsequent years of assessment. This Ruling supersedes Public Ruling No. 1/2004 issued on 30 June 2004. Director General of Inland Revenue, Inland Revenue Board Malaysia. Issue: B Page 26 of 26 How to cite Public Ruling, Essay examples

Marketing Mix Strategy of Audi-Free Samples-Myassignmenthelp.com

Questions: 1.Discuss about the Marketing Mix Strategy of Audi in the United Kingdom. 2.How Marketing Mix Strategy is affected by the PESTLE Environmental factors. Answers: Introduction The paper talks about the business activities and operations of Audi which is one of the biggest automobile manufacturer companies in the market. It tells that how the company is using effective and unique marketing mix strategies. The marketing mix strategies play a vital and integral role to attain long-term mission and vision of the company. It describes the pestle analysis of the company to beat the competitors in the world. In this way, the company is becoming global player in the world. The United Kingdom has been selected to analyse the marketing mix strategies of Audi. Audi is a German automobile manufacturer which designs, produces, engineers, markets, and distributes luxury vehicles. The company was founded in 1910 with its head office is located in Ingolstadt, Germany. It is the biggest vehicle company in the world. There are approx 84,435 employees employed in the company (Apfelbacher et al, 2010). 1.Marketing mix strategy of Audi in the United Kingdom Audi is a German-based car manufacturing organization. It is the biggest car manufacturer company in the world. It is the core brand which focuses on the effective and unique marketing strategies in the global market (Aghion et al, 2016). It is also making dynamic strategies and policies for the future to overcome the competitors in the world. In todays era, the company is expanding and flourishing its business activities and operations within the organization by using effective and unique marketing mix strategy. The main aim of the company is to attain the long-term revenue and profit in the competitive environment. The brand products of Audi are well known for the brand values and core competencies of the company. The marketing mix strategy of Audi in the United Kingdom has been discussed below (Crossan et al, 2013). Product strategies: The product strategy plays an integral role in order to explore its business globally. The product strategies have been discussed below. Product classification: The product classification plays a significant role in product strategy. The company analyzes and evaluates the market of the UK in order to determine the long-term goals and objectives of the firm. Along with this, consumers also plan and carry out survey before actually buy Audi car. They collect a lot of information related to Audi before buying the car. They compare the prices of Audi with other car in the global market. BMW and Mercedes Benz are the main competitors of the company. Along with this, the company is selling the car at very high prices. It uses effective and dynamic advertisement and promotional strategies to increase the profit of the company (Aghion et al, 2016). B.Branding: Branding plays a crucial and vital role to identify and evaluate the buyers and sellers of Audi. It differentiates their vehicles from the competitors vehicles across the world. Along with this, the company uses the effective and attractive logo to attract more consumers globally. Branding not only helps to differentiate their products and vehicles but also helps to segment their market among the people (Verhoef and Leeflang, 2009). C.Labeling: It is used by the company to describe the several things of the product. Audi provides an instruction book for every buyer in the market. This book includes the information about the car, brand, and instruction in how to use and control the car. In this way, labeling plays a vital role in product strategy. D.Packaging: It is essential for the brand to protect and secure the products to ensure the safety and security of the products. Audi uses this strategy in the United Kingdom to attract more customers in the world (Naik and Peters, 2009). E.Product support services: Audi provides customer support services to the people to enhance and increase the satisfaction of the customers. The company is adding new services to delight the people in the global market. For new customers, Audi renders free test drive for them. Along with this, the company renders after sale services which include 2 years warranty and installment facility. In this way, they fulfill the needs, requirements, and expectations of the customers in the United Kingdom. There are many service centers of Audi Company in the UK. These services enhance and build satisfaction and it increases the brand positioning in the world (Varadarajan, 2010). Pricing strategy: It is the effective and unique marketing mix strategy of Audi. The success and growth of the company depend on the price of the car. There are various factors affect the pricing strategy in the global market. The company is differentiating its vehicles from other competitors vehicles globally. It will help to differentiate Audi from the other brands in the world. There are various pricing strategies which have been discussed below (Aaker and McLoughlin, 2009). New product pricing strategies: The new product pricing strategies are adopted by Audi. Along with this, the company uses market penetration strategy to introduce and launch new product globally. It will also enhance and increase the sales of the company. This strategy is used by the company to attract a large number of buyers in the market. B.Product mix pricing strategies: This strategy is used by the company to sell a wide range of products globally. Audi sells different type of model of car. The main aim of the strategy is to maximize and enhance the profit and revenue of the company. C.Price adjustment strategies: This strategy is used by the company to increase the number of customers globally. It provides some discount and rewards to the consumers across the world. Discount can be divided into quantity, cash, functional and seasonal whereas allowances can be classified as promotional and trade (Merrilees, Rundle-Thiele, and Lye, 2011). Place strategy: There are various types of place strategies used by the company to increase and enhance the sales of the company. The company evaluates and analyses the place and environment of the country to introduce new vehicles in the global market. The place strategies have been discussed below (Kapferer, 2012). A.Distribution channels/ Market channels: The market channels and distribution channels are used by the company to increase and enhance the flow of the goods and services globally. These strategies are used by the company to promote their products and it also uses indirect sales marketing channels. Audi monitors and focuses on the innovative products in the world. B.Retailing and whole selling: Audi is using wholesaler channels and mediums to promote and enhance their products to the customers. The company that involves the manufacturing products, it needs to analyze and evaluate the wholesaling process to encourage and promote their products in the UK by using effective and dynamic communication within the organization. It is the good source to reach its final customers in the global market (Keller, Parameswaran, and Jacob, 2011). Promotion strategies: The Company is playing an enormous role in the marketing promotional activities by maintaining effective communication. It uses unique promotional mix tools to increase and enhance the sales of its car and performance of the company. By using promotional strategies, Audi is trying to attract more consumers in the market. The promotional strategies have been discussed below. Direct marketing: It is one of the significant elements of the promotional mix strategy. The company is providing special and new cars in the market for the customers to make them feel good and happy. Consumers are welcomed by Audi employees in UK and employees provide support to the people to fulfill their objectives (Nath, Nachiappan, and Ramanathan, 2010). B.Sales promotion: Sales promotion strategies are used by the company to increase the sales and revenue of Audi. It conducts various sales promotion campaigns to increase the revenue of the company. C.Public relations: Audi Company maintains a reciprocal relationship with customers in the market. It organizes HIN and INI events to increase the number of customers across the world. In this way, the company is able to get potential employees in the global market. D.Product placement: It is another strategy of promotional mix to gain the competitors advantages in the market. The company is using product placement strategy to gain long-term benefits globally (Mangold and Faulds, 2009). E.Official website: It is also an important part of the promotional mix strategy to make an effective and unique relationship with customers across the world. Through official website, the people are able to gain information about Audi in the United Kingdom. Now it is assumed that marketing mix of Audi fulfills needs, requirements, and expectations of the customers. Along with this, customers easily acquired several types of information related to the vehicles globally. Further, the company is improving its services to meet the requirements of the clients in the market. In addition, it uses wholesaler channels to promote their products globally. The company is able to focus on the innovation by using marketing mix strategies globally. It is making effective brand position in the world by using marketing mix and other strategies of the market (Carter Lee, 2012). 2.marketing mix strategy is affected by the PESTLE environmental factors PESTLE analysis is tool and framework to evaluate and analyze the environmental factors of the country. The pestle analysis comprises political, economic, social, technological, environmental and legal factors etc. The PESTLE analysis has been discussed below (Shende, 2014). Political factors: These factors influence the business activities and operations of the company. The United Kingdom is famous for the cars. The government of the country also encourages and promotes the motor producers to make the new car in the country. There are various political factors that influence the marketing mix of Audi which have been discussed below. Changes in rules, regulations, and taxation. It affects the performance and productivity of the company. The timescale of legislative change also affects the business of the company. The trend of deregulations and regulations affect the business operations of the company. Further, marketing mix of Audi also affects the growth and success of the company. Foreign direct investment and globalization also affect the revenue and profit of the company. These factors influence the business activities of Audi in UK Market (lengin et al, 2014). Economic factors: The economic factors also affect the growth of Audi in the United Kingdom. The company is facing credit crunch and difficulties in UK market while selling the vehicles of Audi. The government of the country wants to make a better life of the people in the UK. UK government provides support to the families to buy Audi. But some political factors influence the success of the company (Subramoniam, Huisingh, and Chinnam, 2009). Current and position economy trend such as stagnant, growing and declining. Exchange rate fluctuations also affect the operations and activities of the company. Changes in needs, requirements, and expectations of the customers. Unemployment rate and recession are other big issues in the environment which influence the trading activities of the country. Globalization, access to loans and credit also affect the working environment of Audi in the UK. All these factors influence the success and growth of the company adversely (Gupta, 2013). Social factors: Audi is the biggest car manufacturer company in the world. The social factors include the following. Changes in age, growth rate affect the trading activities of the company. Changes in attitude, behavior, and characteristics of the people also affect the operation of Audi in the UK. Employment patterns, attitude, and trends in the UK market. Standards of health, social mobility levels, and education also affect the growth of the firm. Lifestyles and religious of the people also affect the organization. All these factors must be controlled and managed by the company to provide satisfaction to the employees. Audi is improving its working condition and environment to satisfy the consumers in the UK. In the UK, Audi has established enormous partners with suppliers. Along with this, it is improving the technology to increase the sale of the vehicles in the UK (Y?lmaz and Ustao?lu, 2013). Technological factors: These factors play a vital and integral role in Audi. The technological factors have been discussed below. Technology changes and information technology affect the success and growth of the company. Thus, the marketing mix is affected by the technological factors. Cost of investment, research, and development also affect the trading activities of Audi. Along with this copyrights, production technology and patents also affect the revenue and targets of the company. Rate technological age and access availability of technology are another big issue in Audi to operate its trading activities in the UK. Changes in infrastructure also influence the workflow and activities of the company in the UK. These factors must be managed and controlled by the company to beat the competitors in the world. It also helps to meet its long-term goals and objectives in a competitive environment of the country (West, Ford and Ibrahim, 2015). Environmental factors: The Company maintains corporate social responsibility and sustainability in the UK market to maintain good relations with stakeholders within the organization. Various environmental factors also affect the success and growth of the company adversely. The environmental factors include intense competition, bargaining power of customers, economic conditions and pace of technological advancements. The company promises to minimize and reduce the environmental impacts. Audi also focuses and measures the efficiency of the engine. Therefore, the company must focus on the environment in order to meet the long-term goals and objectives of the firm. Along with this, the company must use the effective and unique marketing and growth strategies to overcome on the competitors in the global market. The environmental factors affect the brand image of the company in UK market adversely (Izogo, and Ogba, 2015). The marketing mix is affected by the pestle positively because the e nvironmental conditions of the UK are unique and appropriate. As a result, the company attracts more customers in the global market. Legal factors: These factors also affect the trading activities and operations of the firm. Audi must focus on these factors to run the business smoothly and easily. The company must evaluate and analyze the legal factors to launch its products across the world. All these factors must be controlled by the company to gain long-term goals and objectives within the organization. Along with this, the company also analyzes and evaluates the marketing opportunities of the country to evaluate and measure the growth and success of the firm. The company is taking social market opportunities and technological opportunities to explore and expand its trading activities globally. In this way, the company can maintain sustainability in the organization as well environment (Al Fahad et al, 2015). The marketing mix of Audi is affected by the PESTEL environment factors of the country. The marketing mix is the effective and dynamic approach of Audi to gain long-term goals and objectives in the UK. It helps to determine that which strategy is right or wrong for the organization. The marketing mix also includes the positioning, targeting, and segmentation to divide its market into the different group in the market. In todays era, it is becoming a more popular strategy in Audi. Through marketing mix strategy, the company is able to fix the right and suitable price of the vehicles in the UK. It also helps to get right things at right and appropriate place and location attract more people in the UK. It also helps to meet the needs, expectations, and requirements of the customers across the world. By using marketing mix strategy, the company is able to make a good image in the global market. The marketing mix is affected by the PESTLE environmental factors. PESTLE analysis encompasses various macro environmental factors which affect the trading activities smoothly and easily. The company can easily implement marketing mix strategies to evaluate and measure the environment of the country (Charan, 2012). The political condition of the United Kingdom is effective and dynamic thus the company can easily implement marketing mix strategies within the organisation. Along with this, the economic conditions of the country are good thus, the company does not put the additional efforts to analyze and evaluate the market of the country. The United Kingdom is using innovative and new technologies to attract more customers in the market. Therefore, Audi can easily use marketing mix strategies in the UK (lengin et al, 2014). It will help to attain the long-term mission and objectives of the company. On the other hand, legal factors also influence the trading activities of Audi in the UK. But effective and unique marketing mix strategies help to reduce these legislations in the market. In the United Kingdom, the firm can easily evaluate and measure the environmental factors due to its unique and effective marketing mix strategies. The company uses effective and unique promotional and advertisement strategies to enhance and increase the revenue and profit of the company. If the working environment of the company UK is good and unique, then the company can easily implement unique and dynamic marketing mix strategies to beat the competitors. Recession and inflation also affect the revenue and profit of Audi. But in the United Kingdom, the purchasing power of consumers is favorable thus; consumers can buy easily Audi and other cars (Al Fahad et al, 2015). In this way, the company analyses and evaluates the PESTLE environmental factors by implementing unique and effective marketing mix strategies in the UK. The SWOT analysis and PESTLE analysis affect the marketing mix strategies of Audi in the United Kingdom. It is important and essential to overcome on the competitors in the market. The company can easily attain its long-term mission and vision of the firm. Audi can easily evaluate and measure the plans, policies, and strategies of the competitors by conducting Pestle analysis (Izogo, and Ogba, 2015). Conclusion On the above discussion, it has been concluded that Audi is one the biggest leaders in the United Kingdom to increase and enhance the customers globally. In todays era, the company is increasing its profits and revenue in the United Kingdom. The firm uses effective and dynamic marketing mix strategies to evaluate and analyze the market of the country. Along with this, PESTLE analysis is done by the company to identify and measure the plans and policies of the competitors in the UK. The main aim of the company is to increase the revenue of the company by maintaining sustainability in the environment as well as the organization. References Aaker, D.A. and McLoughlin, D., 2009.Strategic market management: global perspectives. John Wiley Sons. Aghion, P., Dechezleprtre, A., Hemous, D., Martin, R. and Van Reenen, J., 2016. Carbon taxes, path dependency, and directed technical change: Evidence from the auto industry.Journal of Political Economy,124(1), pp.1-51. 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