Nespresso Club In China And Eastern Europe Marketing Essay

Nespresso Club In China And Eastern Europe Marketing Essay Nespresso is the worldwide pioneer and market leader in premium-portioned coffee. It launched the first system of extracting coffee from capsules to the domestic household market. They currently operate more than 200 boutiques in key cities around the world. The Nespresso Club concept has been successful in Western Europe. The concept is simple: when a machine is bought, the customer joins Nespresso Club on Internet to purchase capsules. This case study investigates on the expansion of Nespresso Club in China and Eastern Europe and that may affect Nespressos entry of these markets. Discuss the key environmental factors that may affect Nespressos entry of these markets, and comment their business implications. Coffee tastes and perceptions are changing fast. Both Western and Eastern European countries have seen an explosion of trendy coffee shops over the past decade. Coffee has become a fashionable lifestyle drink and consumers across Europe are demanding products that allow them to replicate the coffee shop experience at home. (Mintel 2010) On the other hand, the key environmental factors that may affect Nespressos entry in the market of Eastern Europe and China are grouped into five factors: Social-Cultural: The Chinese have the habit of drinking tea. About coffee, they know only freeze-dried coffee. China is the worlds first country to have planted, prepared and drank tea. A culture related to tea made its appearance in a long history. Tea is indispensable in the life of Chinese. It is not only seen as a beverage, but it has also become a cultural art that expresses the philosophy, the aesthetic vision and the lifestyle of Chinese. According to the secretary of the European Coffee Association, Eastern Europe could be the biggest potential developing market of coffee. Moreover, the consumption could develop radically in Poland, Romania and the Czech Republic (Mooradian Swan 2006). He also added that for coffee consumption grows in Eastern Europe, it would be necessary to stop for consumers to consider it as a luxury product, but as an everyday consumer product. Tea is truly present in Russian society and it is inseparable from the Samovar Ceremony. Today, tea drinking around the samovar is to perform a warm and friendly gesture. (Healthy Tea Magazine 2008) It is a moment of sharing within the community in which everyone benefits from home and the presence of each. However, coffee market is expanding in recent years in this country. Legal: There are several barriers in China to establish itself in this country. There is a lot of paperwork to enter in the country. Nespresso sells the machines under license. Their concept, the machine and capsules are protected by 70 patents (School Project 2010). Nevertheless, the China market is risky because after few months the product is counterfeit. No legislation is truly effective in China for the counterfeiting. Under the legislation in force in Russia, over 60% of the products to be sold in the country require compulsory certification or license. That is to say, they must be approved by relevant Russian authorities to verify compliance national standards (Malchik 2010). Economic: China is the second largest economy after the United States. The country had a particularly strong economic growth since the 1980s. However, the population remains relatively poor. There are large disparities between regions and individuals. (BBC News 2009) Eastern Europe consists of a poor population, but its emerging economies have improved their purchasing power in recent years. Nevertheless, machines and capsules are expensive in spite of everything. Political: China has introduced a new tax for foreign companies (Proexport 2008). It would be for maintenance and construction of cities and educational support from foreign companies and foreign persons with business interests in the country. To control imports, the Chinese authorities have introduced restrictive measures applied to many products: the requirement to obtain an import license, the application of quotas and the application of tariff measures. (Thompson 2009) In Russia, there is a lot of bribery for companies. Approximately 80% of companies operating in Russia are forced to pay bribes. Further, the average amounts have increased in recent years. In 2000, a company had to pay on average  £6500 to have no trouble. Now, they must give  £85 000. It is the equivalent of the price of a small apartment in Moscow. Écouter Lire phonà ©tiquement Technological: Consumers must join online the Nespresso Club to purchase capsules from Nespresso Boutiques but only 45% of the population in China have Internet. Over 80% of households have Internet access in countries of Northern Europe. Eastern Europe is trying to gradually catch up delay Internet access, but it is very long to implement. Question 2: Consider opportunities and challenges for Nespresso in these markets in managing customer relationship and sales through the Internet. What are the advantages and disadvantages of such an approach? On Nespressos website, the Nespresso club can give access to a full range of services tailor-made for customers. This concept has been successful in Western Europe. Opportunities for Nespresso are to have consumers on Internet to control the different information. The advantages for Nespresso in these markets in managing customer relationships and sales through the Internet are the ability to know the expectations of customers and to read the consumer reviews on products. Nespresso Club allows a direct customer contact thanks to emails or discussion boards. On Internet, this is the best way to promote products and introduce the company. It creates a close relationship with consumers and forms a special connection. It hopes to turn them into brand advocates. In addition, it updates the database marketing and it can adapt sales strategies. Furthermore, if it does not sell in supermarkets but only in Nespresso Boutiques and Nespresso Club, the branding is positive and reflects a luxury product. By having the main service exchange online, Nespresso retain control of supply channels. Thus, it can assure high quality standards that build a brand identity. (New Media 2009) Challenges for Nespresso are to convince consumers to drink coffee in these markets, to buy a Nespresso machine and to join Nespresso Club to purchase capsules. The disadvantages with such an approach are that the consumers dislike purchasing online, especially Chinese people. Moreover, in China, only 45% has Internet and boutiques are in big cities. There is a large part of the country, which is not covered by Nespresso boutiques because major cities are in Eastern China on the coast (Alvarez Wilding 2008). Such an approach is risky for several reasons. Consumers do not necessarily want to join in the club online, especially to purchase coffee capsules. Further, some consumers prefer to have someone to talk in face-to-face and not on the Internet through emails or discussion boards. In Eastern Europe and China, a portion of population has low incomes. They do not want to waste time so they buy products they find at the supermarket. In addition, they have not all used to order online because this is not in their manners. Question 3: Given that the Eastern Europe and China are emerging markets, would you consider that Nespresso could successfully apply the Nespresso Club concept developed for the Western markets, or should the marketing strategy be adapted to reflect the markets specifics? Support your view on this with examples. Nespresso has not adapted its concept in these markets. However, some companies have chosen the adaptation strategy: Carrefour is a French international chain hypermarket. In 2009, Carrefour is the third in the world biggest to make profit behind Wal-Mart and Tesco. The adaptation of Carrefour consumption patterns for Chinese people is evident in the stores: the fish are alive in aquariums, customers choose their own pieces of meat and fresh products are extremely varied more than in Western Europe. Likewise, McDonalds in China has adapted its menu to meet the Chinese taste. There are a lot of fried chicken instead of meat in the hamburger because more Chinese people like it. Unlike Western Europe people, they like meat more than fried chicken in their hamburger. Further, it is very important to most Chinese consumers to have coupon deals so McDonalds offers several coupon deals to compete the KFC fast food. Nevertheless, McDonalds has standardized the concept in Europe and USA with identical hamburgers and restaurants. Nespresso is not the only one to have standardized its own concept. Several companies have preferred standardization: Like IKEA, it offers home products that meet the needs of people worldwide. For people with needs, tastes and budgets which are very varied. IKEA has the same structure and offers the same furniture catalogs in the world. IKEA stores around the world have the same range of products. It sells a similar lifestyle worldwide. The catalog contains from 2000 to 3000 products and it is the same furniture everywhere in the world. The concept is a success in Russia. It worked very well. Then, Starbucks Coffee has established in China with the same concept as in USA and Europe. Coffee shop has a friendly atmosphere thanks to its decoration, comfort (chairs, sofas), the music played and the ability to take his time in the shop (Wi-Fi connections). This place has attracted the Chinese despite their taste for the tea. Nespresso chose to apply the same concept in Eastern Europe and China. It is a good strategy because it achieves economies of scale in research and development. Thanks to standardization, Nespresso has a consistent brand image across markets. Further, a standardization strategy is much less complex to implement and it is quickly operational (Chernev 2007). Standardization can lead to failure despite the economies of scale that it generates because people do not want to change or abandon their culture.

Knowledge Is the Ultimate Power

Knowledge is the Ultimate power by jayaram Dear friends, have you ever gazed at the night sky and wondered â€Å"What is this Universe? Why is the universe the way it is? Where did we come from? How long our Earth and human race last for? † I think everybody has these questions at least once in their life and we may have a little bit answers. If you want to get better answers, you must read an awesome book called â€Å"A brief history of time† written by Stephen William Hawking mainly for a layman. Stephen William Hawking is a cosmologist, Physicist and Mathematician who is believed to be one of the greatest minds and a living genius.How you will feel if one day you come to know that you are going to die within two years? We will lose our heart. We will lose our future dreams. Some fellows will start to enjoy whatever they wanted to enjoy in their entire life. Some fellows even will try to suicide or start to abuse the God like why the god cursed me? The Same thing happ ened to Hawking. At the age of 21 he was diagnosed with the incurable disease ALS shortly before his marriage, and doctors said he would lost control of his muscles day by day and would not survive more than two years.At first, Hawking was shocked and upset. He could not find any reason for living except one goal to complete understanding of the universe, why it is as it is and why it exists at all. He lost the use of his arms and legs. Fortunately the progress of his illness slowed down Despite his growing physical disabilities, he determined to live and make professional progress in the world of science. Hawking explained the beginning of the universe with the help of black holes which Einstein couldn’t answer.Unfortunately at the age of 42, Hawking caught pneumonia and had a tracheotomy operation, which made him voiceless and as of now he has been almost completely paralyzed. To communicate he has been using a voice synthesizer which auto-completes the words entered throug h a sensor on his cheek. He can speak only 4 words for a minute. Inspite of all disabilities he wrote 6 books through which he changed the perception of human beings about the universe. He had a zero-gravity space flight to encourage public interest in space.He had an attractive family. He got Presidential Medal of Freedom the highest civilian honor in the United States. He is the king of cosmology not because of political power; he has everything not because he is a billionaire. He is a celebrity not because he is a Hollywood or pop hero. He has sold more books on physics than Madonna has on sex. All is because of his search for truth, Quest for Knowledge and knowledge is the ultimate power. The world of knowledge is waiting for our contribution. Let us add something to it.

Stefan’s Diaries: Bloodlust Epilogue

Once I stopped drinking human blood, I became even better at hearing a heartbeat, knowing in an instant, from the speed of a pulse, whether a human was sad or annoyed or in love. Not that I was around humans very much. After I left New Orleans, I truly was a creature of the night, sleeping during the day and venturing into the outside world only when humans were safe in their beds, fast asleep. But occasionally I'd hear a quickening heartbeat and know that someone was climbing from a window or sneaking out a door to meet a lover, stealing a few moments of intimacy. That was the hardest sound to hear. Whenever I did hear it, I was reminded of Callie, of her fluttering heart and quick smile. Of how alive she was, and how she was not afraid to be in love with me despite my true nature. Now, when I think of our plan to escape, I can't help but laugh bitterly at myself for ever thinking it could have been a possibility. It had been the same foolish mistake I'd made when I'd fallen in love with Katherine, believing that humans and vampires could love each other, that our differences were just a minor detail that could be easily solved. But I wouldn't fall into that trap a third time. Whenever vampires and humans dared to love each other, death and destruction were sure to follow. And I had enough blood on my hands to last an eternity. I would never know the extent of the harm Damon was causing in the world. Sometimes I'd see a newspaper article or hear snatches of conversation about a mysterious death, and my mind would instantly jump to my brother. I'd listen for him, too, always waiting to hear him call â€Å"Brother† in his exaggerated drawl. But mostly I listened to myself. The longer I subsisted on animal blood, killing the odd squirrel or fox in a forest, the more my Power ebbed, until it was simply a faded thrum in the background of my being. Without Power, I lost the electric sense of feeling alive, but the guilt I would carry for the rest of my existence had dulled around the edges. It was a trade-off, one of many I'd learned to make, and one of many more I'd have to make in the eternity that stretched in front of me. So I made the vow to always keep moving, to never stay in one place too long or grow too close to anyone. That is the only way I'll do no harm. Because God help us all if I ever fall in love with another human

The Link Between Down Syndrome and Alzheimers Disease...

The Link Between Down Syndrome and Alzheimers Disease The individuals with Disabilities Education Act states that all children with disabilities, including mental retardation, be educated to the maximum extent appropriate with students who are not disabled (2). In an ideal world, society would have no problem following this decree, but the world is less than perfect and, therefore, stigmas are unfortunately attached to those suffering from mental disabilities, especially the mentally retarded. One has to question whether this group of people deserves these stigmas. Having grown up with two severely retarded cousins and, for that matter, a great uncle suffering from Alzheimers Disease, I often wondered as to what was happening†¦show more content†¦The fact that individuals displaying the same symptoms have similar abnormalities in their brains gives supporting evidence to the brain = behavior argument. In further support, studies have suggested that mentally retarded adults have the same risk as other adults of developing Alzhei mers disease, which affects roughly 6% of adults over 65 in the general population. However, adults with Down Syndrome have a much higher rate of developing the disease. 25% of adults with Down Syndrome develop the disease by age 40, and the rate sky-rockets to 65% after age 60. Upon autopsy at death, nearly all adults that suffered from Down Syndrome show brain patterns analogous with those of Alzheimers (9) . If the brain is responsible for the behaviors demonstrated by the sufferers of both Down Syndrome and Alzheimers, then one has to question what the link is. What makes the transition from one to the other more frequent than in the general population and why are the mentally retarded not afflicted by Alzheimers as often as those with Down Syndrome? Down Syndrome is the most common genetic form of mental retardation and occurs in about 1 out of every 800 births. It has distinctive characteristics that allow it to be easily distinguished from other forms of mental retardation (3). Factors such as maternal age, hormonal abnormalities, x-rays, viral infection, immunologic problems, and genetic predisposition can cause the improperShow MoreRelatedThe Chronic Neurological Disease : Alzheimer s Disease1649 Words   |  7 PagesNeurological Disease: Alzheimer’s Hollie Haywood South Piedmont Community College Abstract Alzheimer’s disease has been around since 1901; a German psychiatrist Alois Alzheimer was the first man to identify and follow a case that is now known as Alzheimer’s disease. Alzheimer’s disease is involved in synaptic deterioration and neuronal cell death, and causes degeneration in the hippocampus and amyloid deposition in blood vessels, ultimately cell death is the cause of the disease. 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Immediately after connecting, the running back s head feels undeniably different, but at this point in the game, it would cost the team playoff contention if they lose. This man is young, rich, and famous, but little does he kno w that each concussion he gets brings him one step closer to his own grave. MultipleRead MoreManifestations of Dementia Essay1343 Words   |  6 Pageswas alert and mentally quite capable until about a year ago when she began to manifest signs and symptoms of dementia. A review of her medical records failed to document a thorough analysis of her dementia, but a diagnosis of â€Å"probable Alzheimer disease† was recorded. What are the common manifestations of dementia? The definition of Dementia is â€Å"a general term for loss of memory and other mental abilities severe enough to interfere with daily life. 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Research has found a direct link between the age of the mother and the possibility that the baby will be born with Down syndrome, with the occurrence of Down syndrome increasing proportionallyRead MoreDementia Awareness1790 Words   |  8 Pagesdepression, delirium and age related memory impairment may be mistaken for dementia. Depression, delirium and age related impairment can be mistaken for dementia as they all have similar signs and symptoms. Some of the signs that are similar between depression and dementia are - * low mood or sadness * feeling hopeless and helpless * feeling irritable and intolerant of others   * having no  motivation  or interest in things * finding it difficult to  make decisions *

Television and Media - The Emotional Security of...

The Emotional Security of Real-life Television Real-life television shows of police officers, such as COPS and LAPD: Life on the Beat, offer viewers an intimate, up-close look at life as seen through the eyes of determined police officers who patrol our streets. Television cameras capture actual footage of police officials working to expose and fight drugs, gangs, prostitution, and murder as well as other criminal injustices. As people watch the episodes, they cheer for the good guys and detest the bad guys, hoping the police will eventually apprehend the criminals. Society wants to see the criminals arrested because people feel powerless and scared in a world overflowing with violence. Consequently, real-life television†¦show more content†¦Shows such as Real Stories of the Highway Patrol and COPS serve as an escape for people. Real-life police television shows offer people the opportunity to escape from their fear of becoming a victim of crime. For a thirty minute period, viewers can watch a program that shows the poli ce capturing a wanted felon or suspect. In one particular episode of LAPD: Life on the Beat, officers respond to a domestic violence call in the nick of time; mini-market employees help officers chase down suspected shoplifters; and the police convince a kidnapper to release two children. These happy endings are uncharacteristic of what the media projects. Newspapers, magazines, and news programs tend to only focus on and reflect the abundance of crime and how it jeopardizes the safety of Americans. Rarely do they speak of encouraging or inspiring topics. Instead, the top stories on the daily news generally relate to some sort of ongoing crime. The repetition of these negative stories convey an underlying theme to viewers that America is dangerous and unsafe. Consequently, society tends to feel scared and maintains a pessimistic view on their personal safety. Because society has these anxieties, real-life television shows can capture the attention of discouraged people. When people see an episode of COPS in which the police bring down drug bosses and bust car thieves or when an officer in LAPD: Life on the Beat arrests a house burglar, they becomeShow MoreRelatedThe Effects Of Television On Children s Brain991 Words   |  4 Pageshuge impact.Because children s brain is not yet mature, their life experience is not enough. It causes many times they do not have the ability to judge right or wrong. They only reimbursing emulate and learn what they saw and heard.After that they will use television program of treatment to deal with things over and over again, to think with TV s way of thinking.So there is a very serious problem if children are in touch with violent TV programs,.What will happen? 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It is hard for kids today to imagine a world that existed without all of the gadgets, electronics and seamless operations that computer technology provides.† (Goessl) â€Å"Children in the United States devote some 40 hours a week to television, video games and the Internet.† (Kalb, Raymond and Adams) Many psychologists and researchers areRead MorePostmodernism and the Simpsons10775 Words   |  44 PagesThe Simpsons Intertextuality, Hyperreality and Critique of Metanarratives Ritgerà ° til B.A.-prà ³fs Bjà ¶rn Erlingur Flà ³ki Bjà ¶rnsson bjornfloki@gmail.com Kt. 110982-5779 Maà ­ 2006 Abstract This essay offers a postmodernist reading of the popular television program The Simpsons, with special regard to the postmodern theories of intertexuality, hyperreality, and metanarratives. Before delving into The Simpsons, some major theoretical aspects of postmodernism in aesthetic production are outlined. 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Questions On Writing Assignments The Klandermans And...

Writing assignments: Below are six prompts based on the ideas presented in the Klandermans and Staggenborg text and in earlier readings in Creswell. Select three of the six prompts. Write a minimum 500-word response for each of your selections. 1. What is survey method? What kinds of survey methods are used in social movement?s research? Discuss their benefits and limitations. In the realm of social science there are a variety of measurement tools that academics use to perform social research. One of the most important tools is survey research, a measurement procedure that involves asking questions of respondents (Trochim, 2006). The importance of survey research cannot be understated, as it is estimated that in the 1980s and 1990s one†¦show more content†¦Ultimately, the data collected from research is applied to answering a research question. John W. Creswell (2007) recommends, in his book, Qualitative Inquiry and Research Design: Choosing Among Five Traditions, that there be a single central question and several sub questions. Therefore, one of the challenges in survey research is ensuring that questionnaires and interviews yield results that somehow assist in answering the central question or related sub ques tions pertaining to the study. A variety of survey-related studies are provided by Klandermans and Smith (2011) that normally focus on comparison of movements, events, other social movement features, or a variety of integrated comparisons. Additionally, they acknowledge one of the major challenges in comparative research studies: Unless we obtain measurements that both precede and follow participation or exposure to movement activities, we will not be able to determine the extent to which individuals participate because of their beliefs and the extent to which their beliefs are shaped by their participation ((Klandermans Staggenborg, 2002, p.5) Finally, results must be analyzed with standard statistical techniques. Klandermans and Smith (2002) accentuate the importance of multilevel analysis during the data analysis process. With respect to survey methodology, selecting the type of survey is one of the most critical decisions in many social research texts (p.25). Similarly,

Statistics Related To Insolvency Observanceâ€Myassignmenthelp.Com

Question: Discuss About The Statistics Related To Insolvency Observance? Answer: Introduction: Insolvency is that state when companys total liabilities exceed its total assets. Section 95 A[1] of the Corporation Act 2001 states, any organization or individual can be considered as solvent if such organization or individual is able to pay all the debts and liabilities when they become due and payable. This section further states, individual or organization is considered as insolvent if they are not solvent. In this essay, various terms related to insolvency are discussed such directors role, ASIC role, various methods of insolvency, and process of insolvency. This essay also defines the statistics related to insolvency and observance. Lastly, brief conclusion is stated for concluding the paper[2]. Meaning of insolvency signs related to insolvency: Insolvency is defined under section 95A of the Act, and it is considered as that situation when it becomes impossible for organization or individual to pay its debts. In other words, organization or individual does not have that much assets which can be used to pay the debts of the company. Court determines primary method for the purpose of determining the companys solvency in case Bell Group Ltd (in liquidation) v Westpac Banking Corporation Others[3]. In this case, court held that solvency of company can be determined through the assets and management of the company. Signs related to insolvency: There are number of signs which reflect the actual position of the company such as profitability, goodwill, growth reflect the solvent position of the company. In similar way unprofitability and excess debts reflect the insolvent position of the company. It is necessary for directors of the company to determine the signs of insolvency at former stage for the purpose of preventing the company to goes into liquidation. Some of these signs are stated below: Cash flow of the company reflects more outgoing cash and less inflow of cash, which means company incurred loss while trading. Company faces issue in arranging the capital for its day to day working. Company also faces issue in selling its stock. New limit is negotiated by the individual of organization with the current financier. Shareholders and creditors take or threaten to take legal action against the company[4]. Measures taken by directors: after determining the signs of insolvency, it is the duty of directors to take reasonable measures for preventing the company to goes into liquidation. Following are some measures which can be taken by directors of the company: It is the duty of director to prevent the company from taking any further debt if above stated signs are reflected. However, directors can incurred further loan if it is possible to restructure or refinance the business, and funds in equity form is available for recapitalizing the projects off the company. Board must pass resolution for the purpose of appointing liquidators and administrators of the company. It is the obligation of the director to make sure that creditors and other stakeholders interest has been protected if any risk related to the insolvency occurred. Directors of the company must not engage in any trading with the outsiders if any risk related to the insolvency occurred or company becomes insolvent. Liabilities of directors in insolvency: Corporation Act imposed number of responsibilities on directors of the company if any risk related to insolvency occurred or company becomes insolvent. Section 588G of the Act imposed this liability. According to Section 588G of the Act, it is the duty of the director to restrict the trading at the time of insolvency[5]. Applicability of section 588G- this section is applicable not only on the directors of the company but o those individuals also who were not appointed as companys director but they were acting as the directors of the company. This section further state, obligation of director arises in following situations: Organization becomes insolvent at that time when debt is incurred. Risk related to insolvency occurred if organization decided to take debt Such reasons are present which make the directors believe that company face risk of insolvency or becomes insolvent if such debt is incurred by the company. In case Kenna Brown Pty Ltd v Kenna[6], Court stated that directors must conduct objective assessment for the purpose of determining the insolvency. Contravention of section 588G- there are two types of contravention related to this section, and these contraventions are stated below: If directors of the company fail to prevent the company from incurring further debt, even though sufficient reasons are present which make the directors believe that risk related to insolvency is present or company becomes insolvent, then such failure can be considered as contravention of this section and directors of the company are liable under civil provision. Penalty under criminal provisions will be applicable on directors of the company if directors of the company fail to prevent the company from incurring further debt, even though sufficient reasons are present which make the directors believe that risk related to insolvency is present or company becomes insolvent because of any dishonest reasons. Consequences of contravention- following are the consequences of contravention of section 588G of the Act[7]: Court pass compensation order under section 1317E[8] of the Act if director fails to compile with this section and this order states that directors are personally liable to pay the compensation to the company if any company suffered any operations. Court pass pecuniary order under section 1317G[9] of the Act if director fails to compile with this section, and this order states the amount of penalty imposed on directors up to $200000. Court can pass disqualification order under section 206[10] of the Act and as per this order; directors of the company are disqualified to manage the company. If director fails to compile with section 588G because of any dishonest reason then directors of the company are penalized under criminal provisions, and court can order fine up to 2000 penalty units or imprisonment for the period of 5 years (Corporation Act, 2001). Alternative ways- if directors have sufficient reasons to believe that company face the risk related to insolvency then directors can opt for these alternative ways also: Directors can take advice from professionals and experts. Directors can request secured creditors for appoint the receiver. Directors must cease the trading of the company. Directors must restrict the company for taking any other debt. Board can appoint administrator under section 436A of the Act[11]. Difference between voluntary and involuntary: If company opts for voluntary administration then company can choose reorganization. This intervention is initiated by the directors of the company if directors have sufficient reason to believe that company face risk of insolvency or becomes insolvent. In this director of the company has power to exercise same level of control. This administration provides the hope of business reorganization. Under voluntary administration, external administrator is appointed by the company directors and secured creditors. It must be noted that person who is appointed as administrator under this method is known as voluntary administrator. Investigation is conducted by the voluntary administrator, and in this investigation administrator investigates the company affairs. Investigator sends report to the creditors of the company. In this report investigator state clear views related to the conditions of the company and alternative option available to creditors. On the other hand, involuntary administration of the company occurred when administrator is appointed by the charge holder, liquidator, and provincial liquidator. Under these method directors of the company has power to exercise similar control. It must be noted that involuntary administration is considered as that stage under which hope off business restructuring is almost nil[12]. Members winding up- If directors of the company does not opt for creditors winding up, then also have one more option that is members winding up. Under this option, members of the company pass special resolution for appointing the liquidator. This liquidator is appointed under section 495 of Act[13], which states that liquidator is appointed by passing special resolution in the general meeting. Liquidator is appointed under this section for the purpose of wound up all he operations of the company, and to discharge all the liabilities of the company. Directors of the company can also opt for voluntary administration of the company, and under this method directors appoint voluntary administrator for the purpose of investigating the matters of the company. Statistics related to insolvency: ASIC quarterly statistics related to insolvency shows the result of the last quarter of 2016/17. Result shows an increase of 28% in companies which opt for external administration. Total appointments were 2198 as compared to 1717 in the previous quarter. This can be understood through below stated table[14]: Companies opt for EXAD: Month 2016 2017 %change April 793 590 -25.6% May 735 792 7.8% June 755 816 8.1% Total 2283 2198 -3.7%[15] Issue related to insolvency: Australian insolvency law does not state any measures or steps through which directors of the company can reorganize or restructure the business of the company. However, it also fails in recognizing the long term gains of the company such as value of assets, goodwill, reasons of closure at premature level, and liquidation. Law related to insolvency does not provide any options which deals with the business restructuring or help in making the company profitable. It also fails in providing the measures which protect the interest of directors as well. Making the directors personally liable, while incurring further debt will reduce the capacity of directors to conduct any step for restructuring the business of the company. Following are some issues related to insolvency law in Australia: It will make the directors personally liable which reduce the capacity of directors to incur any further debt. Talented people restrict themselves from holding the position of directors because of the personal liability. Some recommendations related to these issues are sated below: While taking the decision of premature liquidation, expert advice must be compulsory. Reduce the personal liability of the directors if they act in good faith[16]. ASIC Role: ASIC play very important role in the insolvency of the company, and ASIC has power to deregister the company if ASIC has reason to believe that company ceased its trading and fees and penalties due to ASIC and other authorities are not paid by the company. However, if following reasons are present then ASIC can deregister the company: Company fails to submit its annual fee within the 12 months from the date on which fee becomes due. ASIC issued compliance notice to the company and company does not submit any response related to that notice within the period of 18 months from the date of issue of notice. Processing related to the winding of the company is started and company fails to appoint liquidator[17]. Observation: There are number of legislations and case laws which clarify that director of the company are personally liable if they breach their fiduciary duty. However, corporation Act fails to recognize the interest of minority shareholders at the time of insolvency. In case law Kinsela v Russell Kinsela Pty Ltd (in liq) (1986) 10 ACLR 395[18], court held that if directors of the company breach their fiduciary duty then members can rectify the action of the director in general meeting. In case such rectification defrauding the minority then such rectification was considered as invalid. Therefore it is necessary to consider the interest of the minority while making any decision; otherwise such decision will be considered as invalid decision. Conclusion: In this essay, various terms related to insolvency are discussed and this discussion clearly states that role of directors of the company is very important at the time of insolvency. As stated, directors are personal responsible to ensure the interest of creditors and stakeholders. References ASIC. Types of Insolvency. https://asic.gov.au/regulatory-resources/insolvency/types-of-insolvency/, Accessed on 15th September 2017. Australian Debt Solvers, Company Insolvency Survival Booklet, https://australiandebtsolvers.com.au/wp-content/uploads/2016/03/CompanyInsolvencySurvivalBooklet.pdf, Accessed on 15th September 2017. AICD. Insolvent trading, https://aicd.companydirectors.com.au/~/media/cd2/resources/director-resources/director-tools/pdf/05446-6-3-duties-directors_insolvent-trading_a4-web.ashx, Accessed on 15th September 2017. Quinlan, M. (2005). Formal Reorganization in business. https://www.allens.com.au/pubs/pdf/insol/pap15mar05.pdf, Accessed on 15th September 2017 ASIC, Corporate insolvencies: June quarter 2017, https://download.asic.gov.au/media/4410590/201706-june-qtr-2017-summary-analysis.pdf, Accessed on 15th September 2017. ASIC, ( 2010). Duty to prevent insolvent trading: Guide for directors, https://download.asic.gov.au/media/1241384/rg217-29july2010.pdf, Accessed on 15th August 2017. ASIC. ASIC initiated deregistration of company. https://www.asic.gov.au/for-business/closing-your-company/deregistration/asic-initiated-deregistration-of-company/#ReasonsforDereg, Accessed on 15th September 2017. [1] Corporation Act 2001- Section 95A. [2] ASIC. Types of Insolvency. https://asic.gov.au/regulatory-resources/insolvency/types-of-insolvency/, Accessed on 15th September 2017 [3] Bell Group Ltd (in liquidation) v Westpac Banking Corporation Others. [4] Australian Debt Solvers, Company Insolvency Survival marketing, https://australiandebtsolvers.com.au/wp-content/uploads/2016/03/CompanyInsolvencySurvivalBooklet.pdf, Accessed on 15th September 2017. [5] Corporation Act 2001- Section 588G. [6] Kenna Brown Pty Ltd v Kenna. [7] AICD. Insolvent trading, https://aicd.companydirectors.com.au/~/media/cd2/resources/director-resources/director-tools/pdf/05446-6-3-duties-directors_insolvent-trading_a4-web.ashx, Accessed on 15th September 2017. [8] Corporation Act 2001- Section 1317E. [9] Corporation Act 2001- Section 1317G. [10] Corporation Act 2001- Section 206. [11] Corporation Act 2001- Section 436A. [12] Quinlan, M. (2005). Formal Reorganization in Australia. https://www.allens.com.au/pubs/pdf/insol/pap15mar05.pdf, Accessed on 15th September 2017. [13] Corporation Act 2001- Section 495. [15] ASIC, Corporate insolvencies: June quarter 2017, https://download.asic.gov.au/media/4410590/201706-june-qtr-2017-summary-analysis.pdf, Accessed on 15th September 2017. [16] ASIC, ( 2010). Duty to prevent insolvent trading: Guide for directors, https://download.asic.gov.au/media/1241384/rg217-29july2010.pdf, Accessed on 15th August 2017. [17] ASIC. ASIC initiated deregistration of company. https://www.asic.gov.au/for-business/closing-your-company/deregistration/asic-initiated-deregistration-of-company/#ReasonsforDereg, Accessed on 15th September 2017. [18] Kinsela v Russell Kinsela Pty Ltd (in liq) (1986) 10 ACLR 395.