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CHAPTER- 1 INTRODUCTION

Chapter-1: INTRODUCTION 1.1 Introduction Genetic markers can be used to study the relationship between an inherited disease and its genetic cause (for example, a particular mutation of a gene that results in a defective protein). It is known that pieces of DNA that lie near each other on a chromosome tend to be inherited together. This property enables the use of a marker, which can then be used to determine the precise inheritance pattern of the gene that has not yet been exactly localized. This project is focused on Double Helixs Genetic mapping to protect forest assets to enhance Global Competitiveness of Double Helix. Further from theft and ways

insight about the company is

provided in the following sections. The Double Helix belongs to a Niche and growing market. They mainly deal with tracking all details supply chain. DNA based tracking of forest timber including recording and

pertaining to trees in the forest, log and timber product movement through

1.2 Motivation to the study DoubleHelix having a cordial relation with the Governments of Indonesia and Philippines as far as their forest conservation is concerned. They have identified areas, the PT Rimbha Megha Lestari, Papua, Indonesia and Monobo Tribe Project, Mindanao, Philippines for being sampled under the Global Conservation Standards respectively. Further, it is necessary to know in detailed about the conservation areas such as its size, forest type, the duration of the project, types of species available in the forest and the species in which DoubleHelix have information on. This information is basically received from the existing GCS database. The Papua Province conservation area has a tropically moist forest type with a total area of 250,000 ha. This project is scheduled to last for 30 years for sampling various highprofile species such as Shorea spp., Toona Calantus, Dyera Costulata, Dipterocarpus, Dryobalanops, Hiritiera, Intsia, Sapotaceae, Gonystylus, Teak and Pterocarpus. Of these species Shorea, dipterocarpus, intsia and gonystylus have already been studied upon in previous projects undergone by the company. This would help in identification of sample collected easier.

The Mindanao conservation area also has a tropically moist forest type with a total area of 42,000 ha. This project is scheduled for 30 years for sampling various high profile species such as dipterocarpus grandifloris, Melia Dubia, Calophyluum hopea, Dracontomelon, Diospyros Philippine sis, Pterocarpus Indicus, Swietenia Macrophylla, and Afzelia Rhomboidia. Of these species Dipterocarpus, Swietenia macrophylla and diospyros have already been studied upon. These data generally gives a Geographic scope about the Conservation area. The time taken for both the projects is similar but there is a significant difference in the conservation area, this is basically due to the different types of species and the planning of resources in the respective areas. The advantages of taking up these projects are immense due to the various types of species available which helps the organization understand and store more information for future projects. The time span allocated to these projects ensures a constant source of income and a foresight to plan the progress of the research and development unit of the organization. The concerns over climatic conditions, availability of resources and the relative planning of sampling species are variable. The entire planning and implementation of these projects are explained in detailed in the following chapters. 1.3 Preliminary literature review According to Andre Pascal in 21st Century technologies Promises and perils of dynamic futures brings out the Convention signed in Paris on 14th December 1960, and which came into force on 30th September 1961, the Organization for Economic Co-operation and Development (OECD) shall promote policies designed to achieve the highest sustainable economic growth and employment and a rising standard of living in Member countries, while maintaining nancial stability, and thus to contribute to the development of the world economy. The identication of genetic information and applications of genetic engineering are already making their mark in many of areas of human activity. While they are unlikely to have quite the same pervasive impact as Information Technology on the organisational aspects of economy and society, they will nonetheless profoundly affect many facets of everyday life. Those that stand out most from todays perspective are human health, food production (livestock, plants) and food processing, and activities at the crossroads between genetics and other technologies. Work is

already well under way on the human genome, a subject taken up in the chapter by Werner Arber and Mathis Brauchbar. By 2005, after fifteen years of intense activity, scientists should know the full DNA sequence of a typical man or woman. Although at present only a very small percentage of this information has been mapped, the pace of discovery is expected to accelerate dramatically. As the average cost of sequencing each of the millions of DNA base pairs rapidly diminishes from $5 in 1990 to less than fifty cents by the beginning of the next century the number of DNA base pairs sequenced each year is rising exponentially from around 40 million in 1990 to over 400 million in 1997. In parallel, the next twenty-ve years could see major breakthroughs in disentangling the complexity of the human bodys biochemical pathways along which genetic information is transferred, and in understanding how certain genes interact with environmental inuences to exert different effects on different people. What the next twenty-ve years are likely to witness is the identication and mapping of the genomes of thousands of prototypical creatures mammals, sh, insects, micro-organisms and plants. Large-scale initiatives are currently close to implementation. In the United States, for example, the National Science Foundation has launched a major $40 million Plant Genome Initiative, and the Department of Agriculture is working towards a $200 million National Food Genome Strategy. As the biochemical pathways of gene transfer are worked out for animal and plant life forms, vast possibilities could open up for the refined management, control and manipulation of their health, propagation or elimination. Routine genetic programs could emerge for enhancing animals and plants, leading to faster breeding cycles, accelerated plant evolution, and the development of increasing numbers of patentable varieties. Twenty years from now, virtually every widely distributed seed could have been inuenced in one way or another (i.e. through cross-fertilization or genetic manipulation) by genetic engineering. Source: http://www.oecd.org/dataoecd/41/16/35391210.pdf In this section an overview of the results of the test quotations is given. Per specified test case the responses of the approached auditors are compiled so that a comparison can be made. Starting point for the test quotation is a timber trader who imports a certain volume of timber products from Indonesia to the Netherlands or United Kingdom. The importer wants this timber flow to be verified as coming from legal sources. There are two different scenarios to address this demand resulting in five different cases for which a test-quotation was requested.

The auditors have been asked to provide the following information for each of the cases: Mention the tools and steps involved to undertake legal verification and tracking activities; Specify the required assumptions to be able to make a cost estimate; Indicate per tool a cost estimate, possible with its range of variation, preferably in Euro/m3 If possible, specify costs per tool and/or step; Indicate the estimated timeframe required undertaking the audit. Some general comments and remarks on the test quotations: 1. Timber Tracking Programme by SGS Malaysia: takes into account the need for 3rd party verification, but not additional costs for remote forest areas, cost estimates are rather standard. 2. Legal Verification and Wood Tracking Programme GFS: the test quotations are similar to those for Tool 1, but slightly more specific and less costly. This can be understood by the fact that they have been filled in by the same person, who recently started his own GFS business. 3. Certified Source Timber Programme by Schutter Malaysia Sdn Bhd: No overall cost estimates have been given. No specifications are given concerning 3rd party suppliers. 4. Smart Step by SmartWood: no costs are given, nor rates for fees. 1.4 Research Objective This study has the following objectives To analyze how the company Double Helix creates a genetic inventory of the high-profile timber species in GCS project areas and how the samples are collected and extracted from trees. To study the development of DNA sampling with the strategy used for collection of wood samples. To identify the strategic options that would enhance the competitiveness of Double Helix. 1.5 Research questions:

1. If Double helixs Genetic Inventory of Forest Assets is of Global Conservation Standard (GCS), will be of a great asset to company and country? 2. Do you prefer Doublehelix over its other competitors and will you recommend Double helix over others? 3. Do you think this Value Added Service from DoubleHelix will help the organization and public to have an idea on the Biodiversity available in the project area and would help them in research for next 30 yrs to come? 4. Do you think its worth to invest in Doublehelixs project when considering the cost you spend on protecting your forest asset? 1.6 Conceptual framework and hypothesis H1: If, Doublehelix follows Global Conservation Standard (GCS) in project areas to create Genetic Inventory of Forest Assets, will this create a competitive advantage for DoubleHelix. H2: double helix Project Area will be protected from Deterring illegal activity, including document fraud, illegal harvesting and encroachment on project areas. H3: With the help of Doublehelix, it will have the ability to take action against illegal activity on timber products suspected of being removed from project area H4: the standards used to create Genetic Inventory will Increase stakeholder/investor confidence in the organization. H5: The Value Added Service from DoubleHelix will help the organization and public to have an idea on the Biodiversity available in the project area and would help them in research for next 30 yrs to come. H6: Investing in Doublehelixs project when considering the cost spend on protecting the forest asset is worth full.

1.7 Methodology The research methodology is based on research philosophy which has influence on the way research conducted, research strategy employed and research instrument administered. All these elements eventually reflect in outcome of research. The respondents of the questionnaire are the

Employees, experts, Business Mangers, Customers of wood manufacturing industry and employees of Double Helix. Primary Data Interviews with company executives: Basically having a one to one interaction with the executives responsible for the operations of the company Feedbacks from customers: Receive inside information such as e-mails or letters received from the previous or existing customers of the organization

Secondary Data Company Website: Information available through the official website on the company its origin and its progress Industry Reports: Information available through papers, journals on the industry with relevance to the organization Company Annual Reports Financial data with specific relevance to spending areas related to its projects. Statistical tools were used to examine the hypothesis.

1.8 Significance of the study The research had following significance

1. The study contributes to existing literature and also contributes to improve project execution and profits based on a comparison between different projects within the company as well as competitors. 2. The research provides guidelines for

A) External Audit & Source of Data D.1.Macro Environment: External factors which are affecting the progress

D.2.Micro Environment: (Market, Competitor & Customer)

B) Internal Audit E.1. Resources: Types of employees with various skill levels required for different functions 1.9 Limitations The non- probability sampling technique employed in the research due to contextual nature leads towards objective approach. Within the given time frame, getting data from Employees seems difficult and hence, only Customers & employees who have social network account (LinkedIn) and Employees in personal network are considered as a sample population for this study.

1.10 Structure of the dissertation Chapter 1: In this chapter introduction to the research subject, relevant preliminary literature review and overview of this study is been discussed.

Chapter 2: The relevant literature and the theoretical background for the proposed hypotheses are discussed in second chapter.

Chapter 3: This chapter has shaded a light on methodology used in this study that consist of research design, sampling techniques, sampling size, methodology for data collection and statistical methods for testing hypothesis. The justification for the research paradigm is given and research design is explained in depth. The sampling technique and methodology for collecting data sections elaborate approach and steps involved in individual activities. Additionally, statistical methods for analyzing data are briefly explained.

Chapter 4: Chapter four presents discussion regarding results of analysis will be done through SPSS. Findings of reliability and validity are presented for confirming validity and reliability of data. Additionally, analyses of proposed hypotheses by Principal Axis Factoring, Pearsons

correlation technique and Baron and Kennys moderation technique are discussed.

Chapter 5: Finally, in chapter five, conclusion is drawn on the basis of findings of the analysis done in chapter four. The results of findings are then compared with the existing theory and framework and consequently, recommendations are offered on improving project execution and profits based on a comparison between different projects within the company as well as competitors.

CHAPTER 2 LITERATURE REVIEW

CHAPTER-2: Literature review 2.1 Introduction: The objective of this project is to create a genetic inventory of forest assets in Global Conservation Standard (GCS) project areas. The system will detect and deter illegal activities in and encroachment upon conservation areas by creating a DNA inventory that provides: Protection of forest assets by deterring illegal activity, including document fraud, illegal harvesting and encroachment on project areas. The ability to take action against illegal activity by retrospectively testing logs and timber products suspected of being removed from project areas against the genetic inventory. The articles addressed in this Dissertation are pertaining to
Safeguarding Lumber Transactions Trickery Trio The Dragons Tail Theory

According to William B.Magrath and Richard L. Grandalski the following systems and procedures are shadowed in order to prevent the timber theft in public or private forest areas. As per the methods and practices to ensure the reliability of wooden trades in which mercantile sales is part of the strategic organization program. Dishonesty and falsification are the major problems, which can endanger the wooden pilfering in forest areas. Reaps and deals are the basics for forest culture to withstand the business administration. Robbery or fraudulent operation can jeopardize the woodland, minimizing the monetary returns to the property-owner (private or public), minimizing the public belief in the denomination and veracity of woodland organization, and familiarize felonious performance into lumber-based productions and pilfered substance into the lumber stock chain. 2.2 Methods of Lumber Trickery: Lumber deals can be tainted in several ways, as there are methods for terrestrial and lumber distribution, picking, and record sales. Lumber capacities, part prices, classes, ranks, and eminences can be distorted. Illegitimately collected lumber can be combined in stock chains. Prices can be exaggerated, proposals are operated, and levies can be avoided. Lumber stealing comprises underpayment based on un- or under-reported amount, underpayment based on classes wrong identification and operation of tenders. Lumber trades leads to

misuse and operating range from small transactions of timber and structure resources to native consumers to the reward of long-term allowance of rights by public groups. Everything includes danger of some form of misillustration or dishonesty with the target of divesting the source owner of some of the worth of the lumber produce. Safeguarding Lumber Transactions: To regulate the bribery of lumber trades, two tests face forest managers: to develop and uphold truth and moral workstation and manoeuvres, and to launch and uphold strong dealings for the management of lumber operations. To deliver an outline of these concerns, here it begins by unfolding cheating and exploitation as usual notions and as they occur precisely in lumber based actions. The conversation defines the deceit triangle used explicitly to know the happening of deception. Most of the basic protective ways existing to react to endanger deceit are alike to those endorsed to minimize bribery. The argument then goes to four main classes of misuse and misconduct that often distort lumber sales: (1) trickery and conspiracy in lumber transaction constricting; (2) falsification and trickery in costs, estimation, dimension, and other transactions deliveries; (3) corporal robbery or rerouting of raw material during carriage; and (4) fake trades. Timberland division managers will nd the security agenda helpful. By reviewing operations on a yes or no basis, managers can quickly see the areas that may be vulnerable. Managers may need to pay closer attention to these ags or indicators. The security agenda also covers other non lumber-yielding security issues. Lumber burglary will arise in several means, but the outcome will be same as always either it could be in the form of loss of money or lumber, which belongs to the landowner or lumber enterprise. The two types of burglary are trickery & robbery. Robbery is defined as accumulating others assets by force. And we can prevent it by controlling the access to it. Types of Trickery: Trickery is burglary by trick, swindle, or racket; or fakes of opportunity, or counterfeit. Employee misuse, inducements, merchant dishonesty, and client dishonesty are kinds of trickery. Trickery is a course of fake and dishonesty; and the ways to prevent this type of burglary is to believe in other person who is in dealings with the client. In most lawful procedures, Trickery is not a crime or mistake. Even though it is not treated as a sign of crime or mistake, it is believed that this can be one of the ways through which other aggressive crimes or mistakes can happen. Basically, cheating is trickery. There are two basic types of trickery and they are internal trickery and external trickery.

H1: Double helix Project Area will be protected from Deterring illegal activity including document fraud illegal harvesting and encroachment on project areas.

Trickery Trio: Workers and staffs of a company do internal trickery. Company against persons, by persons against company, does external trickery also by company against company, and by persons against persons. Trickery is a kind of small staff burglary and lazy activities of those staff, which can lead to misuse of resources and fake monetary stating. The trickery trio comprises of chance, stress, and justification. It helps to identify the source of trickery and to build the plans to find the dangers and susceptibilities as a part of protection and discouragement. Types of Stress: A variety of stress or inspirations can lead to fake activities. Monetary stress leads to individual arrears, therapeutic bills, living beyond ones means, desire, drug habit, illicit affairs, or betting. Non-monetary stress contains work displeasure; feeling ignored for advancement, worry of job loss, or wants to face the challenge of methods. In most of the developing nations, the compensation is made among the officials in order that they can route the forest resources to their personal use. Monetary stress can lead to trickery by person in source. Forestry agencies are deprived of officials and budget sources in several nations. Thus, higher officials can build a record of budget or expenses of company, which could be false to support their monetary funds and trickery. These diversions, which they do, are illicit and unlawful to the government and also to the landowner. Without clearness and revelation, they can be subjected to intensifying misuse and misrepresentation. Justification: The second reason of trickery trio is justification. Trickery particularly begins from usual activities that become misrepresentation and misused. Since most of the companies are unidentified, they become the victim for tricks and steal. Latent cheats can easily escape from companies and government and they will not get affected as a thief in the place of public people.Chance is the last reason of trickery trio. Chance for cheat involves persons in company can have access to all assets and resources of that forest, so that they can indulge

themselves in wrong doings like illegal transactions of timber and thus showing false statements in their budget preparations. Also in forest related industries it is usual that higher officials lead themselves to self-rule and selfsufficiency. Timberland is very big in area and also very far so that frequent monitoring is not possible always. Hence the wood, which is involved in legal logging, can be diverted to other mischievous areas as they are carried in heavy quantities and to long distance. Hence in timber land most of the calculations and methodologies are prepared based on rough and approximate calculations. Honest promise and thoughtful care of higher organization and headship are key elements of deception deterrence. Chances for Trickery & Steps to prevent Trickery: Trickery dangers can be minimized through deterrence, and discovery amounts. Trickery can be difficult to notice because it involves disguise through fabrication of papers or conspiracy among administration, staff, or other parties. Hence, it is significant to emphasis on deterrence, minimizing chances for cheating to happen, and discouragement by encouraging persons that there is a high liking of discovery and sentence. Paper works can be easily forged to precede illegal logging. The noted information may or may not be correct at one instance, and hence the entire paper works are compromised. Unless strict rules and procedures are followed illegal logging cannot be prevented. In order to tighten the rules and methods the lumber theft prevention planners should ask the following questions to them. Are these methods and rules are strong commercially, Have they got collected all the data which are all-important and scrutinized the collection process? Does this report generated have resolved and re-united, and are all the exclusive reports being produced? The reports which are generated are easily accessible or not, Is the report generated is easy to read and whether it highlights any important data? If it points out any red flag messages what action should be taken and who will investigate it? And investors should come to know about the red flag investigations.

Lumber sales involve what is to be sold and from which location it has to be sold. For example, Lumber sale will target only specific area in a forest also specific size or species of timber, which should be known by the

management, and the data should match the report generated under continuous surveillance. The higher officials and the staff who work under the forest management should know about the tree description and tree boundary markings as once they make any tree felling and landing activities they should get the knowledge about the parties who involve in trading or lumber logging. Also the prices and rates of lumber harvest should be calculated precisely and not by means of approximation. Even the taxes and extra fees for a particular species of lumber should be calculated precisely. H2: With the help of Double helix it will have the ability to take action against illegal activity on timber products suspected of being removed from project area.

2.3 Research on Timber Theft Prevention and Forest Security Planning: William McGrath and Richard Grandalski have taken this case study from the book called Timber theft Prevention and Forest Security Planning. It is based on illegal logging in park areas of Cambodia. The Dragons Tail Theory: Responding to Illegal Logging in the Virachey National Parks Dragons Tail Virachey National Park is one of the top-priority areas for conservation in Southeast Asia. It covers 3,325 square kilometers and protects flora and fauna of international conservation priority. A high percentage of Cambodias ethnic minorities live around the park. Its vegetation, dominated by evergreen forest, is more or less undisturbed. Since March 2000, with World Bank and Global Environment Facility (GEF) support, Cambodias Ministry of Environment has implemented a Biodiversity and Protected Areas Management Project (BPAMP). Its overall development objective is to assist the government to sustainably manage its national protected area system, specifically Virachey National Park (VNP). In 2003, following a one-year participatory process, BPAMP developed a management plan for VNP. Extensive reconnaissance ights provided up-to-date planning information such as the status of the vegetation, encroachment, and illegal activities. Flights also identified potential areas in which to develop tourism and obtain baseline data for a comprehensive monitoring program. The 2003 inspection flights over the park observed no logging. However, ights in 2004 revealed large-scale logging and an extensive network of logging roads in an area of the park called the Dragons Tail. The Dragons Tail is a roughly triangular 120 square kilometers area in the far northeast of the park along Cambodias borders with Laos and Vietnam. The area is mainly low bamboo forest on undulating terrain with remnants of evergreen forest along ridges and on hills. The illegal logging must have started during the 200304 dry

seasons. Yet, it went unnoticed for several months because of the Dragons Tails remoteness and difficult access from Cambodia. The Dragons Tail is extremely vulnerable to threats due to these two reasons and to its easy trans-boundary access from Laos and Vietnam. There are no access roads to the Dragons Tail north of the Sesan River. Depending on the season, ranger foot patrols require at least six days to reach the Dragons Tail from the nearest station within Cambodia. In contrast, access from Laos and Vietnam is easy. A road through the Dragons Tail connects these two countries, and their border police and military units are stationed in and around the reserve. In analyzing the problem, planners were able to locate or identify additional threats. Internal threats: It later became evident that corrupt senior park staff had been supporting the illegal logging operation, gained nancial benets from it, and ensured that the logging was not reported. External threats: Powerful individuals in the three countries, including high-ranking provincial and border police officials from Cambodia, were involved in the illegal logging. After the discovery of the illegal logging in the Dragons Tail, the government initiated criminal investigations that have resulted in convictions of high-ranking officials and the removal from office of several provincial officials and staff. The Ministry of Environment also initiated a planning process to institute long-term measures to prevent the reoccurrence of illegal logging. Development of the plan began with a threat analysis that surveyed 166 kilometers of roads in the Dragons Tail and located 1,683 cubic meters of logs left behind by loggers and stumps indicating additional illegal activity. In addition to the above threats to the Dragons Tail area, the risk assessment identied these two threats: Border dispute involving Lao armed groups who had occupied approximately 20,000 ha of VNP since 2002, preventing access by ranger patrols. Selective Logging: Selective logging of eaglewood trees (Aquilariacrassna) for incense and Building on the risk assessment, four sets of measures to prevent timber theft in the Dragons Tail have been instituted Operational Patrol deployment and staff rotation modied; two ranger outposts constructed in the Dragons Tail area; communication with park headquarters upgraded through the installation of high frequency (HF) radios at the outposts; aerial monitoring increased, Staff motivation. Training, adequate patrol equipment and

infrastructure, and performance-based nonmonetary incentives provided; salaries scaled to encourage good performance. Cooperation (local, regional-trans boundary): On-going cooperation between the park and stakeholders intensives from the local level through provincial, military, and policy authorities to Trans boundary cooperation with adjacent protected areas in Laos and Vietnam. In addition, BPAMP and the Ministry of Environment collaborate with the Ministries of Interior, Defense, and Justice to ensure prosecution of those involved in illegal logging, including high-ranking officials. The Office of the Prime Minister supports these efforts. Disincentives: With support from BPAMP, the Ministry of Environment prepared the court case to prosecute the highranking officials involved in the Dragons Tail illegal logging. This court case has attracted substantial public and media attention and, if successful, will create a real disincentive for timber theft. To address threats to eaglewood resources, the proposed measures included: Patrols in known areas of eaglewood Development of informant networks Surprise attacks on eaglewood poachers Stop and arrest encountered offenders More aggressive transfer of cases to court, and follow-up Conservation education about eaglewood for specific and general audiences Support to community information networks. To address the problems along the Lao border, the plan proposed to: Carry out patrols without engaging Lao P.D.R. soldiers Carry out aerial monitoring Lobby the Government of Cambodia to resolve border dispute.

The successful criminal prosecutions are positive indicators, but it is too early to know whether the efforts in the Virachey National Park will be successful in the long term. It does appear that, in addition to obvious political commitment at the highest levels of government, having a park protection strategy located within a sound overall park planning and development program provides a framework for adaptive management. In it,

simplicity and exibility are achieved by including only the basic framework of the proposed management in the Management Plan. Details are addressed in more exible supporting documents, such as Detailed Zoning Plans, Operating Guidelines, Visitor and Business Plans, Memoranda of Agreement, and Strategy Documents. Thus, the project has been able to combine skills, experience, and creativity with a disciplined analytic process to put in place a credible timber theft prevention strategy. H3: The standards used to create Genetic Inventory will increase stakeholder/investor confidence in the organization.

2.4 DNA Tracking For Illegal Timber Transactions: Another case study, which is taken from the magazine, called Timber West, states that Tree DNA is now being used to find out the illegal logging issues of timber by Douglas Page. In April 2010, a Washington man was sentenced to 18 months in federal prison for stealing several old-growth maple trees from the Hood Canal Ranger District in Washington. The highvalue wood was to be used in musical instruments. A sawmill worker suspected the wood had been harvested on National Forest land and not on private land, as stated in a forged permit. H4: Investing in Double helixs project when considering the cost spends on protecting the forest asset is worth full.

2.5 DNA Fingerprinting: Cases like this may benefit from a new technology emerging from Australias University of Adelaide that uses advances in DNA fingerprinting of trees to make it harder for timber thieves to succeed. The DNA technique can be used to trace individual logs or wood products back to the forests of their origin.DNA fingerprinting allows individual trees to be uniquely identified genetically and is useful for following particular logs or large timber products along a supply chain where documents can be falsified, says Andrew Lowe, director of the Australian Centre for Evolutionary Biology and Biodiversity. Lowe says it is now possible to extract and use genetic material from wood products and samples of old wood.It can use DNA to identify tree species and DNA to identify and track individual logs or wood

products, and it can verify the geographic region the wood came from, Lowe says. It will never be able to get DNA out of paper products but we are able to routinely get DNA out of wood products like decking.Lowe said large-scale screening of wood DNA can now be done cheaply, routinely, quickly, and with a statistical certainty that can be used in court. The DNA method can be applied at ports of entry to address the import/export of timber obtained through illicit means. Lowe estimates 10 per cent of wood imported into Australia consists of illegally traded timber, harvested outside designated logging areas or environmental controls. Commonly used checks in place in the field to monitor the flow of legal as well as illegal timber are vulnerable to falsification, particularly between logging concession and mill, where most illegally logged timber is inserted into the supply chain.Certification documents can be falsified, DNA cannot, Lowe says DNA fingerprinting can be used by suppliers to check supply chain integrity or by importers to check species or region of origin. With the Lowe technique, DNA is extracted from logs sampled at logging concessions, and a unique genetic fingerprint is generated using 14 DNA segments, called microsatellite markers. The first company to commercialize the DNA technology is a Singapore firm called Double Helix Tracking Technologies, which has marketed a DNA fingerprinting system to check the integrity of timber supply chains since 2007. Lowe is chief scientist for Double Helix. Double Helix spokesperson Jonathan Geach says they can extract DNA from kiln-dried timber products like tables and chairs and match this back to samples taken earlier in the supply chain or from pre-existing genetic maps.It has extracted DNA from a 500-year-old shipwreck, Geach says. Illegal Logging: The scope of the timber theft problem ranges from nuisance to malevolence on an international organized-crime scale. In July, the Vietnamese military was implicated in a multi-million dollar timber operation that smuggles threatened timber over the border from the shrinking forests of neighboring Laos. Some estimates suggest that illegal timber may account for onetenth of the global timber trade, worth maybe $150 billion a year. One conservation group believes more than half of all logging activities in vulnerable regions, like the Amazon Basin, Central Africa, Southeast Asia, and parts of Russia, are illegal.

In the U.S., the Forest Service estimates one of every ten trees harvested in national forests is taken illegally. According to a 2008 Congressional Research Service Report, private companys claim three per cent of their trees are stolen, amounting to losses of $350 million annually. Timber theft in the Northwest seems to be mostly of the nuisance variety, but as the Hood Canal incident illustrates, it does exist. Quick profit is the incentive. Old growth timber, most popular among thieves, can net a $5,000 profit from a single tree.Timber theft is as much a crime as any other theft, says Lauren Fins, of the department of Forest Ecology & Bio geosciences at the University of Idaho. If using DNA identification helps to reduce or stop the stealing, it seems a worthy technique to use.Fins says if timber companies or government agencies routinely identify their stands genetically, especially old growth hardwoods that are vulnerable to theft, it is less likely wood will be stolen and if it is, more likely the perpetrators will be caught.If multiple genetic markers are used, the probability of misidentifying logs or wood would be very low, she says. For species that are highly genetically variable, it might even be possible to pinpoint the exact population sources of the wood. Genetic markers would be pretty damning evidence for anyone caught with the logs and the products. One forensic method the Forest Service currently uses is to mark the boles and stumps of trees to be harvested with paint containing unique chemical tracers whose formulation is a closely guarded secret, according to Dennis Dykstra, a retired Forest Service scientist. Laboratory identification of the tracers is highly reliable and has been used in court as proof of illegally harvested trees, Dykstra says. Jeff Stringer, of the Department of Forestry at the University of Kentucky, says the use of DNA would improve the ability to successfully prosecute timber theft, since local law enforcement generally does not have tools or resources necessary to track timber movement from stump to processor. The use of DNA sample collection from the stump and then subsequently from logs on a deck, satellite yard, or primary processor yard would aid in this, says Stringer.

Shelley Gardner, a U.S. Forest Service policy analyst, sees the DNA technique being useful not just for government enforcement but also for regulatory compliance in the private and public sectors. Gardner said when wood is seized (such as happened in August when during an investigation federal agents confiscated imported hardwood from the Gibson Guitar company in Nashville) and there is a question as to which species it is, the wood would first go to Forest Service wood anatomists.But in cases where its important to know the woods country of origin, in theory DNA could complement the wood anatomy method, Gardner says.

Authenticating the origin of Woods: In 2007, Australian companies became the first in the world to purchase wood products that use timber DNA fingerprinting as part of proof of legal origin. Double Helix is well established in Asia and will soon expand to the Congo Basin. There is also growing interest in the U.S. in stopping illegal logging. The 2008 farm bill (P.L. 110-234) amended the 1900 Lacey Act to make it unlawful to import plants harvested or taken illegally in areas outside the U.S. This was primarily intended to deter imports of illegally obtained timber from foreign countries. One of the problems is timber is moved around the globe, making it difficult and expensive to identify foreign species properly.Falsification of documents certifying origin is rampant, Lowe says. Lowe believes a precise DNA reference standard that crosses political and geographic boundaries would help manage and identify valuable forest assets. He adds, DNA has the potential to provide a universal standard to identify all specimens of a timber species no matter how far the timber is carried. H5: The Value Added Service from Double Helix will help the organization and public to have an idea on the Biodiversity available in the project area and would help them in research for next 30 years to come.

2.6 Common steps adhered in Wood Industries In this section an overview of the results of the test quotations is given. Per specified test case the responses of the approached auditors are compiled so that a comparison can be made. Starting point for the test quotation is a timber trader who imports a certain volume of timber products from Indonesia to the Netherlands or United Kingdom. The importer wants this timber flow to be verified as coming from legal sources. There are two different scenarios to address this demand resulting in five different cases for which a test-quotation was requested. The auditors have been asked to provide the following information for each of the cases: Mention the tools and steps involved to undertake legal verification and tracking activities; Specify the required assumptions to be able to make a cost estimate; Indicate per tool a cost estimate, possible with its range of variation, preferably in Euro/m3 If possible, specify costs per tool and/or step; Indicate the estimated timeframe required undertaking the audit. Some general comments and remarks on the test quotations: 1. Timber Tracking Programme by SGS Malaysia: takes into account the need for 3rd party verification, but not additional costs for remote forest areas, cost estimates are rather standard. 2. Legal Verification and Wood Tracking Programme GFS: the test quotations are similar to those for Tool 1, but slightly more specific and less costly. This can be understood by the fact that they have been filled in by the same person, who recently started his own GFS business. 3. Certified Source Timber Programme by Schutter Malaysia Sdn Bhd: No overall cost estimates have been given. No specifications are given concerning 3rd party suppliers. 4. Smart Step by Smart Wood: no costs are given, nor rates for fees.

2.7 Research proves some cases that the importer seeks new suppliers whose sources have been verified as being legal. The buyer requires a tracking system from the supplier to the market. Please describe the available tool/s to do so, and provide an indication of the costs involved, for example referring to field projects with forest companies and processing industries that your company is presently involved in. 1. Timber Tracking Programme by SGS Malaysia If an importer seeks new suppliers with legal timber sources, the importer would be requested to identify key product suppliers. SGS would then conduct a site audit to verify the current gaps in the system in each factory to verify traceability of raw material to an individual forest or plantation area. SGS would recommend the most feasible factories and sources of raw material to be considered for participation in the Timber Tracking Programme. Costs would vary based on time and manpower needed to audit the factories, hold discussions with the forest managers and evaluate forest concessions to legal compliance. Average time required would be 8 man-days per forest area, and 3 man-days per factory. Fees are US$ 750 per man-day. Total costs would be about US$ 2,700 per factory and US$ 6,800 per forest area. Factories and forests would need to be audited at least every 6 months to verify continual compliance. 2. Legal Verification and Wood Tracking Programme by GFS Similar to test quotation for Tool 1, with the following differences: Fees are US$ 600 and time estimates are also lower so that overall costs are about 30% lower; There is the possibility of conducting separately a legal origin audit (2 days), legal compliance and CoC (6 days), or a simple batch inspection (half a day per factory).

3. Certified Source Timber Programme by Schutter Malaysia The process is one of verifying legality as described above: verification of documents, physical inspections of the logs in log yard, sawmill and of shipment location. The total assessment takes estimated 4 to 9 man-days. Fees are US$ 500 excluding expenses. 4. Soil Association Considering following assumptions, legal verification takes 5 days with total cost of US$ 2500: Supply from forest verified as legal includes documentary evidence/certificate verifying legality/controlled wood status; No visit to forest required by Soil Association; Issue chain of custody certificate of legal verification/controlled wood to new supplier based on own controlled wood systems; New system and concept for supplier therefore pre-assessment visit and report needed; Main assessment when new supplier systems in place visit, report, certificate. 5. Track Record. The activities to be undertaken will include the establishment of a tracking system with bar codes and satellite-based tracking system. Material (hardware and software) costs excluding installation and training are estimated at US$ 6720, under the following assumptions: Supplier will want Application Service Provider option. Stand alone options are available but loose transparency and are more costly; Impossible to calculate a total cost because some costs are volume dependent (i.e., labels); Assumes need for satellite communications (i.e., not possible to connect with link directly to an ISP); It is assumed that over time chain-of-custody costs will drop as auditing becomes more automated.

6. Smart Step by Smart Wood Verification could involve a range of suppliers from 1 to 100. This would be an in-depth project, with too many variables, to provide a substantive proposal at this point in time. Ultimately, through working closely with the importer we would identify what the volume, species, product needs are; compare current supply situation to desired situation; then propose a pilot project to focus on a segment of the total supply. It would require an assessment of the supply chain, working with a provider of technical assistance to the suppliers to ensure understanding and implementation of CoC systems was adequate, and then scoping and assessment of pilot participants. 7. Wood Legality Verification and Tracking Program by TNC Initially timber must be tracked back to the forest, then tracking can become an ongoing monitoring process. First the company will need to undergo a legal verification audit against new Legality Standard, including forest concession/s and sawmill/s. Probably 2 audits are required to close out non-compliances. First audit will take 10 mandays, second 6 mandays, with a total average cost of US$ 16,000 (variation according to size of concession and compliance to standard). Surveillance and auditing will add another US$ 10,000 per year. Secondly, a tracking system will need to be installed. This includes installation and training, followed by regular audits. Installation of the system from forest concession/s to sawmill/s will cost at average US$ 15,000 (including consultancy costs, software and hardware). Subsequently, independent auditors will sample check the data provided by the system, which would cost at average US$ 12,000.

2.8 Additional steps undertaken for trading to Europe: If the timber flow were to run via trading or wood processing companies in Malaysia or Singapore, prior to export to Europe, what would be additional steps to be undertaken and additional costs involved? 1. Timber Tracking Programme by SGS Malaysia Would require additional 2 man-days for each involved facility in Malaysia or Singapore, unless major non-compliances are found which would require more man-days for closing-out. 2. Legal Verification and Wood Tracking Programme by GFS Similar to test quotation for Tool 1, with slightly lower costs due to lower fees (US$ 600). 3. Certified Source Timber Programme by Schutter Malaysia If the timber flow runs through Malaysia or Singapore, an additional 2-4 days is required for inspection of the companies concerned. 4. Soil Association Considering following assumptions, legal verification will take 10 days with total cost of US$ 5,000: Bullet points above, and Issue chain of custody certificate of legal verification to processor based on own controlled wood systems. 5. Track Record Similar as case 1.1, material costs estimated at US$ 8,860. 6. Smart Step by Smart Wood The wood traders in Malaysia and Singapore would require CoC systems to be in place and verification auditing to take place. As above, there are too many variables inherent in the case to propose a work plan.

7. Wood Legality Verification and Tracking Program by TNC Both traders and processing companies will need to have tracking systems for ensuring CoC integrity. In the case of the traders this would be simple if traders do not break open the original product packs. Wood processing companies and traders who break product packs would need to install a CoC tracking system to keep verified products distinguished from unverified ones. Cost estimates are given above (case 1-1). Additional CoC audits would be at average US$ 4,000 annually Source: http://www.vvnh.nl/files/Toolbox.pdf H6: Doublehelix follows Global Conservation Standard (GCS) in project areas to create Genetic Inventory of Forest Assets will this create a competitive advantage for DoubleHelix.

2.9 Stated in BBC Article on Laws enforced to save forest: From 2012, companies importing timber will need to prove where it came from, and will face legal sanctions if they do not comply with the new law. The vote follows several years of wrangling over how stringent the legislation should be. Campaigners say they are pleased that the issue is to be addressed at last. About 20% of timber coming into the EU is thought to be illegal. The illegal timber trade plays a significant part in the deforestation of some tropical countries. Oregon State University issued a press release: "At the moment, It have ways of tracking logs that are only partially effective," "Bar coding is awkward and leaves plastic tags or metal staples that can cause problems in mills. Radiofrequency identification tags are very expensive; with some pulp logs they might cost more than the product you are selling. So it needs improved technologies."

Excerpts from Singapore public sector monitoring: 1. It is now increasingly common for wood procurement policies to state a preference for products that are certified under Sustainable Forest Management (SFM) schemes. 2. Timber Legality Audits from SGS provide a voluntary, company-level approach that incorporates regular auditing or continuous monitoring and verification of a companys wood production and tracking information. Potentials for Savings by Implementing RFID and Telematics Technologies in the Timber and Biomass Supply Chain While RFID and telematics technologies already enjoy wide implementation among retailers and logistics providers, their use in timber and biomass logistics is still in a phase of initial testing and pilot projects. Implementable technologies provide cross-organizational functionalities and facilitate the optimization of the supply chain from the forest to the factory. Naturally, timber and biomass supply processes confront logistics with special challenges. Moreover, there are constraints and a need for further developments. Nonetheless, these technologies have been effectively and successfully implemented in a number of projects. The standardization of information technology will be a fundamental prerequisite for the acceptance of RFID and telematics technologies. Ensuring Legality in the Tropical Timber Supply Chain: Illegal logging represents a significant contributor to deforestation in some countries its estimated to be up to 90%. The World Bank estimates that the illegal timber trade costs governments US$15 billion p.a. in lost assets, revenues and taxes US Lacey Act amended in 2008 to make it illegal to import and trade in illegally harvested wood Ensuring timber legality involves monitoring the chain of custody from tree to table Lessons Learnt: o Difficult to locate suitable RFID tags tags designed for timber pallets did not prove durable in tropical forest. o Limited read/write memory in cost effective tags limits innovation in RFID solutions o Read range needs careful management when capturing details of individual logs.

2.10 Biotechnology and Genetic Engineering in Forest Trees: There is currently limited investment in genetic engineering applications outside of small number of companies and a few public researchers, primarily because of the regulatory and market acceptance Genetic engineering is the most powerful tool for studying gene function in biology today, including forest trees. For example, GE can be used to manipulate the level or timing of gene expression with specificity and precision that is not provided by any other approach. How this helps DoubleHelix: Protecting forest has become a global issue and Government worldwide are now planning and forecasting to protect their forest resources. This is an opportunity to DoubleHelix to increase its market share. European Union has applied tough procedures for timber supply and export. This is also an unseen opportunity for DoubleHelix to prove its technique in those countries. Many universities are now studying various ways of tagging trees and tracking them, this can help DoubleHelix to enrich its knowledge and know various research works going on in various parts of the world. Many governments have started budgeting for protecting its forest reserves, so funding should not be a problem for these researches. The database thus developed will also help its students knowing the flora and fauna of its own country. 2.11 Chapter Summary: Earlier double helix was keen on old techniques like kiting and DNA fingerprinting. But as of now the competitor of double helix is growing by following these old methods and systems when compared to double helix organization. As per the quote Necessity is the mother of invention Double Helix the mother of invention of DNA Finger printing shouldnt forget to implement its old methods and systems for the growth of the company in future. Also by following the above described rules and principles which are discussed in both the case studies, can bring growth to the Double Helix company in future.

CHAPTER 3 METHODOLOGY

CHAPTER-3: Methodology 3.1 Introduction: The research methodology is based on research philosophy which has influence on the way research conducted, research strategy employed and research instrument administered. All these elements eventually reflect in outcome of research. It is acknowledged that ignorance towards research philosophy affects the quality of research (Bryman & Bell 2007). So, appropriate selection of research philosophy leads towards clarity in the research design. According to research philosophy, research methods have different style and technique and it is necessary to align those style and techniques with appropriate philosophy. Moreover, apart from methodology, research strategies should be considered that are based on certain assumptions under the situation of what is being studied. The various elements of research viz. research paradigm, research design, sampling techniques, data collection and statistical methods are elaborated in the following sections.

3.2 Justification Approach: Research philosophy has significant influence on the way data collected in research, analyzed and processed. Consequently, it is worth to consider research philosophy. Study of relevant literature reveals that two major philosophy viz. positivism and interpretivism have been used predominantly in research studies (Collis & Hussey 2009). Bryman (2004) and Tuli (2010) have identified three main aspects of research philosophy that differentiates each other. Additionally, it is acknowledged that epistemological and ontological assumptions influence the research strategy (Sobh & Perry 2006). So, it would be appropriate to justify research design on the basis of following three aspects suggested by Bryman and Bell (2007). Principle orientation to the role of theory in relation to research Epistemological orientation Ontological orientation

Principle orientation to the role of theory in relation to research

Although genetic inventory is relatively new concept, sufficient literature and theoretical models are available. The framework for this study is founded on the existing theory, which facilitated the construction of hypotheses. So, it seems that positivist approach can be adopted because under positivism, theories provide foundation of justification, allow anticipation of phenomenon, forecast their occurrence and hence allow them to be controlled. The rationally justifiable arguments can be scientifically verified and/or is capable of logical proof (Collis & Hussey 2009).

Epistemological orientation

Epistemology orientation refers to one which is considered as acceptable knowledge in specific discipline (Bryman & Bell 2007). The underlying epistemological assumptions in positivist approach viz. i) only phenomena that are observable and quantifiable can be validly regarded as knowledge (Collis & Hussey 2010) and ii) research can be described from an objective viewpoint and results of research can be valid and generalizable (Remenyi & Pather 2006) are in compliance with personal philosophy. Furthermore, rhetorical assumptions are in line with the personal report writing style. Ontological orientation

Ontological orientation concerns with how knowledge is derived or accepted in particular discipline (Bryman & Bell 2007). Personal belief that knowledge can be formulated or discovered by incorporating systematic and technical processes resembles with the positivist approach.On the basis of above aspects of research, it seems that positivist approach suits for the study and hence this study is based on deductive paradigm. Deductive paradigm enables accurate understanding of current problems. Further, results provided can be transferable (Collis & Hussey 2009). So, by using positivist approach, this research attempts to provide an effective guidance for Doulble helix Positivism is associated with quantitative methods of analysis as opposed to the interpretivism where the findings are derived from the qualitative analysis. The analytical and logical skills

gained through previous work experience have facilitated in establishing causal relationship between the variables.

3.3 Research Design A research design is defined as a set of advance decisions that makes up the master plan specifying the methods and procedures for collecting and analyzing the needed information (Burns & Bush 2010, p.143). Research design is vital in quantitative study and link among various design elements is necessary. Corner (2002) has recommended integrated research design for quantitative study. The research design based on this model is elaborated as follows. Build Knowledge The study of relevant literature was completed and theoretical frameworks were identified for effective genetic Mapping for Double helix. The plausible conceptual model was proposed on the basis of theoretical knowledge. Formulate Hypothesis This project will explain the analysis and the development of DNA sampling with the strategy used for collection of wood samples. There would also be brief explanations on the ways of storage, variations within the project area and the advance testing services. So, the conceptual framework and hypotheses of the study were well argued in the light of literature in chapter 2. Develop Measures

Measurement of dependent and independent variables was done by finding questions for each variable. The research paradigm requires questionnaire approach for obtaining data. Examination of more than one variable is facilitated by survey (Pather & Uys 2008). Additionally, the ease in administrating questionnaire and its cost effectiveness made it key tool in researches (Zhang 2000). Research instrument was adopted from previous literatures and distributed over internet through e-mail. It was assumed that entrepreneurs

and marketing managers/executives of SMEs provide the most appropriate responses. All the respondents were assured of anonymity of their responses.

3.4 Type of research: Descriptive Research: Descriptive research includes surveys and fact-finding enquiries. The major purpose of descriptive research is description of the state of affairs as it exists at present. The main characteristic of this method is that the research has no control over the variables; Descriptive studies are concerned with describing the characteristics of a particular individual or group. There is a general feeling that descriptive studies are factual and very simple and this is not necessarily true. 3.5 Sampling design: Sampling design is a definite plan for obtaining a sample from a given population. It consists of the following. 3.5.1Sampling units: The respondents of the questionnaire are the Employees, experts, Business Mangers, Customers of wood manufacturing industry and employees of Double Helix. 3.5.2 Sampling method: Process of selecting a sample from a population is called sampling. In sampling, a representative sample or portion of members of a population or process is selected and then analyze. Based on sample result called statistics, Statistical interferences are made about the population characteristic. Random sampling method will be chosen to conduct the survey in which the samples are selected randomly. 3.5.3 Sampling techniques

Sampling technique and sampling size were determined by considering availability of resources and time, feasibility of collecting data and response rate as data collection is expensive and time consuming process (Corner 2002). Appropriate sampling techniques facilitate selected samples

to be representative of population which then allows researcher to draw conclusion for entire population (Ritzer 2011). It is acknowledged that data collection is a vital part in quantitative study and results are extrapolated on the basis of relatively small amount of data (Punch 2005). So, given the nature of the study, it was considered that respondents should have decent business and/or marketing knowledge. Consequently, purposive sampling technique that focuses on specific predefined groups was considered to be appropriate. Further, snowball sampling approach was partially adopted by requesting entrepreneurs to forward the survey to other entrepreneurs they might know.

3.5.4 Sampling size For the sample, use of Linked-In groups mentioned in previous section was decided to be used for accessing entrepreneurs. Taking time constraints into consideration, request message was written and sent through Linked-Ins send message option. Total 100 members were interviewed and tried to target 500 members but they were biased and 100 members were giving full response rate. Other than Linked-In contacts, survey was sent to individuals belonging to personal network through e-mail. The data collection technique is explained in next section.

3.6 Detailed research methodology The research methodologies to attain the objective of project are:

I.

Primary Data will be collected by interviewing the following people

a) Business Managers-5 b) Employees- 45 c) Experts-10 d) Customers-40 Total of 100 respondents were interviewed and the graphs and hypothesis are tested using statistical tools.

II.

Secondary Data will be based on the study on the Attrition rate concepts and theories followed for workplace environment and employee retention. Statistical tools like chi-square test, weighted average method will be used to check the hypothesis. further the data sources are explained in detail

3.7 Data Sources Primary Data Interviews with company executives: Basically having a one to one interaction with the executives responsible for the operations of the company Feedbacks from customers: Receive inside information such as e-mails or letters received from the previous or existing customers of the organization

Secondary Data Company Website: Information available through the official website on the company its origin and its progress Industry Reports: Information available through papers, journals on the industry with relevance to the organization Company Annual Reports Financial data with specific relevance to spending areas related to its projects.

Data resources Source Use of journals, reviews, articles Chapters in which it is used Introduction, Methodology and Environmental analysis

Industry and market reports

Introduction, Methodology and Environmental analysis

Publications and papers on strategy, operations and competitiveness

Strategic decision, Analysis and Findings and Recommendation

Magazines and Journals from India

Strategic decision, Methodology, Analysis and Findings and Recommendation

Related websites

Introduction, Methodology and Literature Review

Athens code, pro-quest

Methodology and Environmental analysis

3.8 STATISTICAL TOOLS USED: The researchers as used three different tools for analysis and interpreting the data, in this data, in this study, the following tools have been applied. Percentage Analysis. Linear Regression. Chi-square test. Weighted Average method

Percentage analysis: Percentage analysis refers to a special kind of ratio and is used in making comparison between two or more services of data and is used to describe relationship. Percentage is used to compare the relative terms and the distribution at two or more services of data. Percentage Analysis = No. of customers / total customers* 100 Interval estimation method: Interval estimation is the use of sample data to calculate an interval of possible (or probable) values of an unknown population parameter, in contrast to point estimation, which is a single number. Neyman (1937) identified interval estimation ("estimation by interval") as distinct from point estimation ("estimation by unique estimate"). In doing so, he recognized that then-recent work quoting results in the form of an estimate plus-or-minus a standard deviation indicated that interval estimation was actually the problem statisticians really had in mind. An interval estimate of a real-values parameter is any pair of functions, L (x1. . .) and U(x1, . . . ,), of a sample that satisfy L(x) U(x) for all x X . If X = x is observed, the inference L(x) U(x) is made. The random interval [L(X), U(X)] is called an interval estimator. Weighted average method: Under weighted average method of material issue, it is calculated by total cost of material and then it is divided by total units of our material. After this, it can get weight average price and issue the material at this price. In weighted average method, the weight on quantity of material issue, so it is better than simple average method, because with giving weight, can obtain more representative price of material bought in different times.

Simple Steps to Calculate Weighted Average Price of Material Issue 1st step : To calculate total cost of material 500 units bought @Rs. 3 = 1500 600 units bought @ Rs. 4 = 2400 200 units bought @ Rs. 2 = 400 ---------------------------------------total cost of material = Rs. 4300 ______________________________

total no. of units = 1300 units

Weighted Average Price = Total cost / total units = total of WX/ total of W

= 4300/1300 = Rs. 3.30

Terms of Reference
The objective of this project is to create a genetic inventory of forest assets in Global Conservation Standard (GCS) project areas. The system will detect and deter illegal activities in and encroachment upon conservation areas by creating a DNA inventory that provides: Protection of forest assets by deterring illegal activity, including document fraud, illegal harvesting and encroachment on project areas. The ability to take action against illegal activity by retrospectively testing logs and timber products suspected of being removed from project areas against the genetic inventory. GCS will be the worlds first standard to use a genetic inventory to secure assets, a major point of differentiation against other systems and a means to increase stakeholder/investor confidence in the GCS scheme. The genetic data will contribute to a publically available global genetic database, utilized for many other scientific applications (such as biodiversity analysis) and useful beyond the 30 year term of the projects.

The use of DNA to secure the forest assets can generate significant international media interest and publicity. The scientific approach is based on applying the latest genetic analysis techniques developed by DoubleHelix and utilization of the most powerful laboratory equipment available to minimize costs.

At this stage, project costs range from USD 8 per hectare for a small 50,000 ha project to USD 3.14 per hectare for a 250,000 ha project. These costs are expected to fall further as the number of projects increase due to better utilization of laboratory and manpower resources. Whilst complementing other more expensive monitoring methods such as satellite and fly-over imagery that detect degradation of forest assets, DNA testing against the genetic inventory provides legally admissible evidence of illegal activity with which to challenge perpetrators and seek financial restitution from loss of assets.
Genetic Mapping:

In physical mapping, the DNA is cut by a restriction enzyme. Once cut, the DNA fragments are separated by electrophoresis. The resulting pattern of DNA migration (i.e., its genetic fingerprint) is used to identify what stretch of DNA is in the clone. By analyzing the fingerprints, condign are assembled by automated (FPC) or manual means (Pathfinders) into overlapping DNA stretches. Now a good choice of clones can be made to efficiently sequence the clones to determine the DNA sequence of the organism under study (seed picking). Macro restriction is a type of physical mapping wherein the high molecular weight DNA is digested with a restriction enzyme having a low number of restriction sites. There are alternative ways to determine how DNA in a group of clones overlap without completely sequencing the clones. Once the map is determined, the clones can be used as a resource to efficiently contain large stretches of the genome. This type of mapping is more accurate than genetic maps. Genes can be mapped prior to the complete sequencing by independent approaches like in situ hybridization. DNA Profiling: DNA profiling (also called DNA testing, DNA typing, or genetic fingerprinting) is a technique employed by forensic scientists to assist in the identification of individuals by their respective

DNA profiles. DNA profiles are encrypted sets of numbers that reflect a person's DNA makeup, which can also be used as the person's identifier. DNA profiling should not be confused with full genome sequencing.[1] It is used in, for example, parental testing and criminal investigation. Although 99.9% of human DNA sequences are the same in every person, enough of the DNA is different to distinguish one individual from another, unless they are monozygotic twins.[2] DNA profiling uses repetitive ("repeat") sequences that are highly variable,[2] called variable number tandem repeats (VNTRs), particularly short tandem repeats (STRs). VNTR loci are very similar between closely related humans, but so variable that unrelated individuals are extremely unlikely to have the same VNTRs. The DNA profiling technique was first reported in 1984[3] by Sir Alec Jeffreys at the University of Leicester in England,[4] and is now the basis of several national DNA databases. Dr. Jeffreys genetic fingerprinting was made commercially available in 1987, when a chemical company, Imperial Chemical Industries (ICI), started a blood-testing centre in England.[5]
DNA Fingerprinting:

A method used to identify multilocus DNA banding patterns that are specific to an individual by exposing a sample of the person's DNA to molecular probes and various analytical techniques such as Southern blot analysis. DNA fingerprinting is often used to provide evidence in criminal law cases also called genetic fingerprinting. a technique for comparing the nucleotide sequences of fragments of DNA from different sources. The fragments are obtained by treating the DNA with various endonucleases, enzymes that break DNA strands at specific sites. There is a chance of 1 in 30 billion that two persons who are not monozygotic twins would have identical DNA fingerprints. To resolve the complexities of the process, short, randomly repeated, highly specific "mini satellite" genomic sequences are used. A wild-type M13 bacteriophage that identifies the differences is confined to two clusters of 15base-pair repeats in the protein III gene of the bacteriophage. The specificity of the probe makes it applicable to questions of forensic science.
DNA Databases:

There are now several DNA databases in existence around the world. Some are private, but most of the largest databases are government controlled. The United States maintains the largest DNA

database, with the Combined DNA Index System, holding over 5 million records as of 2007.The United Kingdom maintains the National DNA Database (NDNAD), which is of similar size, despite the UK's smaller population. The size of this database, and its rate of growth, is giving concern to civil liberties groups in the UK, where police have wide-ranging powers to take samples and retain them even in the event of acquittal. The U.S. Patriot Act of the United States provides a means for the U.S. government to get DNA samples from other countries if they [clarification needed] are either a division of, or head office of, a company operating in the U.S. Under the act, the American offices of the company can't divulge to their subsidiaries/offices in other countries the reasons that these DNA samples are sought or by whom.[citation needed] When a match is made from a National DNA Databank to link a crime scene to an offender who has provided a DNA Sample to a databank that link is often referred to as a cold hit. A cold hit is of value in referring the police agency to a specific suspect but is of less evidential value than a DNA match made from outside the DNA Databank
Global Conservation Standard:

The Global Conservation Standard (GCS) was created initially to help in the battle against deforestation. It had a secondary role to help rural communities benefit from the investment provided by the public, corporations and Governments, based on CCFs energy crops and developing lumber crop operations, through scaled commercial implementation. This in turn had the added benefits of reducing commodity pressure on the forests. The GCS has evolved considerably into a conservation-based standard and a working methodology which is logical, transparent, and practicable but importantly allows the monetization of conservation assets quickly and which is globally implementable. The GCS is a framework for commercial conservation area enhancement with baseline monitoring coupled with satellite and fly-over imagery. This creates an audit basis from which not only the conservation asset can be monitored but other credits can be generated through proactive enhancements which are normally in the best interests of the conservation area and surrounding communities and businesses. Better use of fertilizers for instance can reduce nitrate and phosphate levels in soils which creates nutrient credits. This in turn increases yields and

revenue while reducing fertilizer run off (leaching) into the watershed (water credits) which again reduces the impact within the conservation areas. To safeguard forest assets, GCS uses our Genetic Inventory to deter theft and provide a route for recovery in the event of leakage. We take samples a selection of trees across the conservation area and build a DNA profile of the tree population in the forest; effectively creating a postcode for the trees. If any illegal or unauthorized harvesting takes place a DNA test can prove the origin of the timber back to the conservation area. This limits the liability of the conservation manager and provides greater assurance to the investor and other stakeholders. This provides all stakeholders with an additional due diligence and a long lasting genetic asset for years to come
Genetic Marker:

A genetic marker is a gene or DNA sequence with a known location on a chromosome that can be used to identify cells, individuals or species. It can be described as a variation (which may arise due to mutation or alteration in the genomic loci) that can be observed. A genetic marker may be a short DNA sequence, such as a sequence surrounding a single base-pair change (single nucleotide polymorphism, SNP), or a long one, like minisatellites. Some commonly used types of genetic markers are RFLP (or Restriction fragment length polymorphism) SSLP (or Simple sequence length polymorphism) AFLP (or Amplified fragment length polymorphism) RAPD (or Random amplification of polymorphic DNA) VNTR (or Variable number tandem repeat) Microsatellite polymorphism, SSR (or Simple sequence repeat) SNP (or Single nucleotide polymorphism) STR (or Short tandem repeat) SFP (or Single feature polymorphism) DArT (or Diversity Arrays Technology) RAD markers (or Restriction site associated DNA markers)

Uses of Genetic Markers:

Genetic markers can be used to study the relationship between an inherited disease and its genetic cause (for example, a particular mutation of a gene that results in a defective protein). It is known that pieces of DNA that lie near each other on a chromosome tend to be inherited together. This property enables the use of a marker, which can then be used to determine the precise inheritance pattern of the gene that has not yet been exactly localized.

Genetic markers have to be easily identifiable, associated with a specific locus, and highly polymorphic, because homozygote do not provide any information. Detection of the marker can be direct by RNA sequencing, or indirect using allozymes. Some of the methods used to study the genome or phylogenetics are RFLP, Amplified fragment length polymorphism (AFLP), RAPD, SSR. They can be used to create genetic maps of whatever organism is being studied.

There was a debate over what the transmissible agent of CTVT (canine transmissible venereal tumor) was. Many researchers hypothesized that virus like particles were responsible for transforming the cell, while others thought that the cell itself was able to infect other canines as an allograft. With the aid of genetic markers, researchers were able to provide conclusive evidence that the cancerous tumor cell evolved into a transmissible parasite. Furthermore, molecular genetic markers were used to resolve the issue of natural transmission, the breed of origin (), and the age of the canine tumor.

Genetic Markers have also been used to measure the genomic response to selection in livestock. Natural and artificial selection leads to a change in the genetic makeup of the cell. The presence of different alleles due to a distorted segregation at the genetic markers is indicative of the difference between selected and non-selected livestock.

CHAPTER 4 ANALYSIS AND FINDINGS

CHAPTER-4: Findings & Discussions 4.0 Analysis & Findings This chapter deals with analysis of primary data and analysis & findings of external and internal environment using the frameworks discussed in the literature review.

4.1 Primary Data Analysis


The primary data analysis is done by designing the hypothesis and questionnaires, related to various aspects of DoubleHelix and its project methodologies. These are sent to group of people related to this field to capture their view in regards to this project. The data collected will be used in the ensuing chapters to support the evidences. The primary data is compiled, analyzed and presented in Figure 4.1

Figure 4.1 Interpretations of Primary Data Hypothesis Hypothesis No 1: If, Doublehelix follows Global Questions If Double helixs Genetic Inventory of Forest Assets is of Global Conservation Survey Results Observation Most of the respondents have conveyed that the Genetic Inventory created by adhering to Global Conservation Standards would Total number of respondents who answered the survey = 100 really be a biggest asset to concern.

Conservation Standard (GCS), Standard (GCS) in project areas to create Genetic Inventory of Forest Assets, will will be of a great asset to you and your country?

Hypothesis this create a competitive advantage for Doublehelix

Questions

Survey Results

Observation

Hypothesis No 2: If, Doublehelix follows Global

If Doublehelixs Genetic Inventory of Forest Assets is of Global Conservation

Majority of the respondents have agreed to a point that the if Double Helix follows the GCS for creating the Genetic Inventory then they would definitely Total number of respondents who answered the survey = 100 encourage Double Helix by recommend them to other prospective stakeholders.

Conservation Standard (GCS), Standard (GCS) in project areas to create Genetic Do you prefer Doublehelix over its other competitors and will you

Inventory of recommend Double Forest Assets, will this create a competitive advantage for Doublehelix helix over others?

Hypothesis Hypothesis No 3:

Questions By choosing Doublehelix, do you feel your Project Area will be protected from Deterring illegal activity, including document fraud, illegal harvesting and encroachment on project areas?

Survey Results

Observation From the view of the respondents, we come to a conclusion that having the needed documents in hand we can be sure that we can protect our area from

The Total number of respondents who answered the survey = 100

fraudulent activities.

Hypothesis No 4:

Do you think, with the help of Doublehelix, you will have the ability to take action against illegal activity on timber products suspected of being removed from project area? The Total number of respondents who answered the survey = 100

By taking majorities view into concern we can say that, with the help of Double Helix we would be able to fight and take necessary steps against illegal activities around the project area.

Hypothesis Hypothesis No 5: Double Helix uses Global

Questions Do you think the standards used to create Genetic Inventory will Increase

Survey Results

Observation Most and many of the respondents have agreed that Double Helix following the standards would definitely fetch Stakeholder/investors confidence and good

Conservation stakeholder/investor Standard (GCS) for creating and maintaining Genetic Inventory. confidence in your organization? The Total number of respondents who answered the survey = 100

will.

Hypothesis No 6: The genetic data, prepared by Double Helix, will contribute to a publically available global genetic database, utilized for

Do you think this Value Added Service from DoubleHelix will help the organization and public to have an idea on the Biodiversity available in the project area and would help them in research for next 30 yrs to come? The Total number of respondents who answered the survey = 100

From the respondents view we come to know that the database thus created by Double Helix can be used by the public ad others for years to come and thus have a wide knowledge on that project area. It is good that Double Helix will provide the database for public learning and

Hypothesis many other scientific applications.

Questions

Survey Results

Observation development.

Hypothesis No 7:

Do you think its worth to invest in Doublehelixs project when considering the cost you spend on protecting your forest asset? The Total number of respondents who answered the survey = 100

Majority of the respondents have confirmed that they would be willing to invest in Double Helix.

Hypothesis No 8: With regards to the work force management in project area, if Double

Do you think, If Double Helix provide training for local people belonging to the project area for its research purpose will reduce the project cost and

Respondents have put in their thoughts in saying that the local employment is always welcome, but not at the cost of project quality or time. Double helix should follow proper

Hypothesis Helix paves way for engaging local population, improve the standard of living of the local people. Hypothesis No9: The Genetic Inventory thus created by Double Helix should not be disclosed to any community that would harm the society. Double Helix would abide by this condition.

Questions will also pave a way for employment?

Survey Results

Observation project management

Total number of respondents who answered the survey = 100

measures for smooth flow of the project.

Do you think the Genetic Inventory will be used only for constructive purpose and Double Helix will follow all measure to make it certain? Total number of respondents who answered the survey = 100

By far the respondents have said that the Double Helix should follow globally accepted methods to protect data and prevent it from reaching unauthorized hands.

4.2 Statistical tools: 4.21 Weighted Average Method Hypothesis statement H1: Double helix follows GCS in project areas to create genetic inventory of forest assets through a competitive advantage. Calculations Table: 1 Options Strongly agree Agree Neutral Disagree Strongly disagree Total X 1 2 3 4 5 Y 24 40 17 12 7 100 Z 24 80 51 48 35 238

Z=x*y Sum of Z column/ total of y Average=238/100=2.38 Rank=2 INFERENCE The above table infers that the most preferred point by the respondents are agreeing to the hypothesis statement that Double helix follows GCS in project areas to create genetic inventory of forest assets through a competitive advantage.

4.22 Chi-Square Test 1 Hypothesis 7: Do you think its worth to invest in Doublehelixs project when considering the cost spend on protecting the forest asset

Options Strongly agree Agree Neutral Disagree Strongly disagree Total

No of respondents 22 39 19 12 8 100

Percentage 22% 39% 19% 12% 8% 100%

STEP 1: NULL HYPOTHESIS: [H0] It is not worth investing in Double helix projects when considering the cost spend on protecting forest asset. ALTERNATE HYPOTHESIS: [H1] It is worth investing in Double helix projects when considering the cost spend on protecting forest asset. STEP 2: EXPECTED FREQUENCY: Expected frequency = Total number of samples Total option for respondents to be chosen Therefore,

Expected frequency [E]

100 5

= 20

Observed Observed Options Frequency [O] Expected frequency [E] frequency Expected frequency [O-E] Strongly agree Agree Neutral Disagree Strongly disagree 22 39 19 12 8 20 20 20 20 20 2 19 -1 -8 -12 4 361 1 64 144 0.2 18.05 0.05 3.2 7.2 28.7 [O-E]2 [O-E]2 E

Calculated value

[O-E] 2 E

Therefore, Calculated value TABLE VALUE: Degrees of freedom = 5-1 = 4 Where, n is the total kind of responses got from the responders. Therefore, Table value = 9.49 (source: chi-square table where n=4 @ 0.05 level of significance shows table value as 9.49) = 28.7

CONCLUSION: The calculated value is found to be greater than the table value. Therefore, H0 is rejected. It is worth investing in Double helix projects when considering the cost spend on protecting forest asset.

4.23 KARL SPEARSON RANK CORRELATION FOR THE FOLLOWING VARIABLES Hypothesis 2: (X) Recommendations of double helix over its competitors considering GCS Hypothesis 3: (Y) choosing of double helix will be protected from Deterring illegal activity, including document fraud, illegal harvesting and encroachment on project areas. X Y 12 27 34 39 39 18 8 9 7 7

Whether the data value correlates with recommendations of double helix and will it be protective in deterring illegal activities. This above statement will be proved by the following calculations

Mean of (X) = (12+34+39+8+7)/5=20 Mean of (Y)= (27+39+18+9+7)/5=20

Mean of X(20) 12 34 39 8 7 -8 +14 +19 -12 -13

X2

Mean of Y(20)

Y2

XY

64 196 361 144 169 X 2=934

27 39 18 9 7

7 19 -2 -11 -13

49 361 4 121 169 Y 2=704

-56 266 -38 132 169 XY=473

X=100/5=20 0

Y=100/5=20 0

r= (xy)/((n&(x2)/n) ((y2)/n)) Where XY=473 n= 5 X 2=934 Y 2=704

r= 473/( 5*943/5)x ( 704/5) = 473/(5x13.7x11.86)= 0.58 Inference: Hence data taken is positively correlated. So it is clear that it correlates with recommendations of double helix and it is protective in deterring illegal activities.

4.24 Linear Regression Method Hypothesis 4: Double helix will have the ability to take action against illegal activity on timber products suspected of being removed from project area. Table 4 in data Analysis part Particulars Strongly agree Agree Neutral Disagree Strongly disagree Total No of respondents 43 39 11 4 3 100 Percentage 43% 39% 11% 4% 3% 100%

Hypothesis 9: Genetic Inventory will be used only for constructive purpose and Double Helix will follow all measure to make it certain. Table 9 in data Analysis part Particulars Strongly agree Agree Neutral Disagree Strongly disagree Total No of respondents 26 34 19 16 5 100 Percentage 26% 34% 19% 16% 5% 100%

From table 1 & 2 Options Double helix ability against illegal action 43 39 11 4 3 100 Genetic inventory for constructive purpose adhered by double helix 26 34 19 16 5 100

Strongly agree Agree Neutral Disagree Strongly disagree Total

Options Strongly agree Agree Neutral Disagree Strongly disagree Sum Mean

xi 43 39 11 4 3 100

yi 26 34 19 16 5 100

xi X 23 19 -9 -16 -17 0

- Y (xi X)2 6 14 -1 -4 -15 0 529 361 81 256 289 1516

( Y)2 36 196 1 16 225 474

(xi X) * ( Y) 138 266 9 64 255 732

X=20 Y=20

= bo + b1 X b1 = { [(xi X) ( Y)]}/ { [(xi X)2 ] } = 732/1516 = 0.482 = Y b1 * X = 20 (0.482) * (20) = 10.36 = 0.482+ 10.36x

(Source: SPSS software V1.9)

Source: Excel SPSS trial software to predict intercept Based on the results it seems that Double helix will have the ability to take action against illegal activity on timber products suspected of being removed from project area and it will also follow genetic inventory for constructive purpose. Hence fourth and ninth hypothesis (H5): is confirmed with result of analysis.

4.3 Industry Analysis


According to Hitt et al. (2005) the industrial environment has a set of factors that influence the firm and its competitive advantage. Lynch (2006) has argued that any organization has to intensely compete within its own industry and hence there is a need to develop competitive advantage to win its rivals. The existence of potential customers, suppliers and competitors are the key factors to be kept in the mind for the firms to formulate their strategy.\ 4.31 Porters Five Forces Model Porter (1998) formulated the Five Forces Model to assess the attractiveness of different industries. The five forces which determine the industry competition and profit potential are Potential Entrants, Substitutes, Suppliers Power, Buyers Power and Threat of Competitors.

Source: Adapted from Porter (1998)

Five Forces

Description

Threat of New Entrant

Entry is tough job in this market as it requires lot of cost to be spent on the technology, research and resources.

Supplier Bargaining Power

Suppliers have choices on vendors and the relationship also depends on credit facility and understanding both party holds.

Buyers Bargaining Power With increasing competition in the market the buyers have lot of options to choose from.

Industry Rivalry The behavioral pattern is basically driven by the technical capabilities exhibited by the experts in the industry.

Substitutes

If there is an opportunity for any lower switching cost, customers would not mind switching to the new organization.

Source: Adapted from Porter (1998)

4.32 SWOT of Double Helix: Strengths Niche segment High scientific technology Cost advantage if the project area is large High quality processes Following highly accepted standards Weaknesses Weak marketing strategy Less reputation Lack of accessibility to resources compared to the competitors

Opportunities Untapped Market Enter new and attractive market Favorable rules and regulations by the government Market with no strong competitors Removing the cross border barriers Possibilities like mergers, joint ventures, acquisitions with local organizations.

Threats Upcoming competition from other markets Not well recognized procedures Awaiting govt approval and delay in project confirmation

4.4 Portfolio Analysis Findings


Portfolio analysis is commonly used in strategy formulation where top management views its product lines and business units as a series of investments from which it expects a profitable return (Wheelen and Hunger, 2002). It stimulates the use of externally oriented data to supplement management judgments and cash flow availability for use in expansion and growth. Its graphic depiction facilitates communication. The two most popular approaches of Portfolio analysis are Shell Directional matrix and GE/Mckinsey directional policy matrix

4.41 Industry Life Cycle


Friend and Zehle (2004) have stated that power of five forces change typically with the phases of industry life cycle due to the ever changing market. The life cycle model represents some useful generalization about competitive behavior. This comprises four phases: introduction, growth, maturity and decline. Please see Figure 3.7 a. Introduction: During the introductory phase the products are yet to become familiar among the buyers. In this phase potential customers have just started to notice the products b. Growth: As customers become familiar with the product, the growth is rapid at this phase. They might have acquired a strong distribution channel resulting in increased profit and rivalry as well. c. Maturity: This being a mature phase sales may become stagnant. The growth is slow at this stage and the firm has to take care of its price to sustain in the market d. Decline: At this phase the decline of the firm happens owing to factors like intense competition, inability to cope-up with competition etc.

4.42 Resources and Capabilities


The resources and capabilities determine the strategic capability needed for an organization to survive and prosper (Johnson et al. 2008). The productive assets which are referred to as resources can be broadly classified into two types i.e. tangible resources and intangible resources.

Tangible resources The tangible resources normally refer to the physical assets of the firm such as labor, finance, equipment, machinery etc. They all are measurable resources which are value addition to the firm. Intangible resources The intangible resources are non-physical assets such as information, reputation and knowledge. These resources cannot be measured physically but are very much beneficial to the organization. Organizational capability The organizational capability refers to the ability of the firm to engage itself in a wide range of productive activities. According to Kay (1993) the three main classes of organizational capability are innovation, architecture and reputation Link between Resources, Capabilities and Competitive Advantage

Source: Adapted from Grant (2005)

4.43 Value Chain


Value Chain is the set of activities within and around the organization, which together form a product or service (Johnson et al, 2008). There are two kinds of activities in the value chain, namely the primary activities and secondary activities. The primary activities are concerned with

the creation and delivery of product or service, while the secondary activities are mainly for improving the effectiveness and efficiency of secondary activities. Value Chain Activities Description I. Primary Activities Characteristics

Activities associated with receiving, storing a) Inbound Logistics and distributing inputs to the product or service, such as material handling, ware housing, inventory control, transport, and return to suppliers.

Activities associated with transforming inputs b) Operations into the final products form, such as machining, packaging, assembly, equipment maintenance, testing, printing, and facility operations.

Activities associated with collecting, storing, c) Outbound Logistics and physically distributing the product to buyers, such as finished goods, ware housing, material handling, delivery vehicle operation, order processing, and scheduling.

Activities associated with providing a means d) Marketing and Sales which buyer can purchase the product and inducing them to do so, such as advertising, Promotion, sales force, quoting, channel selection, channel relations, and pricing.

Activities associated with providing service to

e) Service

enhance or maintain the value of the product, such as installation, repair, training, parts supply, and product adjustment

II. Support Activities

Characteristics

The processes that occur in many parts of the a) Procurement organization for acquiring the various resource inputs to the primary activities.

All value activities have a technology, even if b) Technology development it is just know how. Technologies may be concerned directly with a product (for example, R&D, product design) or with processes (for example, process development) or with a particular resource (for example, raw materials improvements)

This transcends all primary activities. It is c) Human resource management concerned with those activities that are involved in recruiting, managing, training, developing and rewarding people within the organization.

The formal systems of planning, finance, d) Infrastructure quality control, information management, and the structures and routines that are part of an organizations culture

Source: Adapted from Johnson et al. (1998)

Value Chain With in an Organization

Source: Adapted from Porter (1998)

4.5 Porters Generic Strategies (Business-Level-Strategy)


Business level strategy is a plan of action that uses the firms resources and distinctive competencies to gain competitive advantage (Hill and Jones, 2007). This strategy is concerned with how a business competes in the market and strategic decisions like the choice of products, needs of customers, gaining competitive advantage, etc. The generic business level strategies, chosen by firms to establish and gain competitive advantage are cost leadership, differentiation and focus strategies

Porters Generic Strategy

Source: Adapted from Hill and Jones (2007)

Description of Porters Generic Strategies Porters Generic Strategies Descriptions

Cost Leadership Strategy

Cost leadership strategy in a firm is a set of activities that offer low-priced products to many kinds of customers. The success of this strategy is affected by factors like competitors producing products at same or lower cost, buyer and supplier power, substitutes etc

Differentiation Strategy

Differentiation strategy in a firm is a set of activities that offer unique products to many kinds of customers. They provide innovative features and emphasize on product/service quality. They appeal to the psychological desires of the customers. The success of this strategy is affected by factors like competitors imitating the features, substitute products coming up with similar features etc

Focused Strategies (Cost Leadership/Differentiation)

Focused strategy in a firm is a set of activities that offer products to only one kind of customers. The purpose of this strategy is to gain competitive advantage in the chosen target segments if not an industry-wide competitive advantage. The two kinds of focused strategies are cost leadership and differentiation. In the focused cost leadership the firm achieves cost advantage in the chosen target market by offering low-priced products whereas in the

focused differentiation the firm achieves differentiation by offering differentiation in the chosen target market.

Source: Adapted from Hill and Jones (2007)

4.6 Ansoffs matrix (Strategic Directions)


The Ansoff product/market growth matrix provides way for four basic alternative directions in strategic development (Johnson et al. 2008). The matrix suggests the organization to take decisions depending on whether it markets new or existing products in new or existing markets. The four basic directions are depicted and explained in the Figure 3.15 and Table 3.10 respectively. These directions are market penetration, new product development, new market development and diversification. Ansoff Matrix

Source: Adapted from Johnson et al. (2008)

Descriptions of Ansoff Strategic Directions Ansoff Strategic Directions Descriptions

Market Penetration

Market penetration is where an organization takes increased share of its existing markets with its existing product range. It builds on existing strategic capabilities and doesnt require organization to venture into uncharted territory. The major constraints in seeking greater market penetration are retaliation from competitors and legal constraints.

Product Development

Product development is where organizations deliver modified or new products to existing markets. As the same markets are involved, product development requires greater degrees of innovation for it to be successful. Product development can be an expensive and high-risk activity for two main reasons: New strategic capabilities and project management risk.

Market Development

Market development is where existing products are offered in new markets. Though the extension of scope is limited, this may entail some product development in terms of packaging or service. It takes three main forms: new segments, new users and new geographies. Market development strategies are based on products or services that meet the critical success factors of the new market.

Diversification

Diversification is defined as a strategy that takes an organization away from both its existing markets and its existing products. It radically increases the organizations scope and involves building on relationships with existing products or markets. Diversification is one direction for developing the organization and needs to be considered alongside its alternatives.

Source: Adapted from Johnson et al. (2008)

4.7 McKinseys 7-S Framework


McKinseys framework is mainly used for evaluating the strategic options and improving the organizational effectiveness. This framework views the culture of an organization as a function of seven elements namely: strategy, structure, systems, style, staff, skills and shared values. Among the seven elements, the Strategy, Structure and System are considered as hard elements which are easier to identify and management can directly influence them. Style, Skills, Staff and Shared values are considered to be soft elements which are more influenced by culture and are less tangible.

McKinseys 7-S Framework

Source: Adapted from Robert H. Waterman, Jr., (1982)

4.8 Shell Directional Matrix


According to Friend et al (2004) the shell directional matrix analyses the organization with respect to its business sector prospects and business position. Its a nine cell matrix which analyses the companys position in a much better fashion compared to the four cell matrices. They determine the possibility of the middle ground, the companys business prospects is categorized as attractive/unattractive/average and companys business position is categorized as strong/average/weak.

Description of Cell in Shell Directional Matrix Matrix Description

Leader

With strong business position and attractive business prospects, they maintain their position as a leader

Try harder

They have attractive business prospects but average business position, they need to apply their resources to become a leader

Double or quit

The business position is weak but the business prospects is attractive, by making use of their R&D resources they can become leaders

Growth

With strong business position and average business prospects they need investment for future market growth

Custodial

Their business position and business prospects are average, minor and major investments are done with caution

Cash generator

To acquire attractive business prospects, the products are moved to the end of life cycle and are replaced by new products/ new geographic location

Phased withdrawal

Their products have a weak position and less

market value compared to its competitors

Divest

The company is facing huge loss and it is better to dissolve as soon as possible

Source: Adapted from Friend et al (2004) Shell Directional Matrix

The Directional Policy (GE/Mckinsey) Matrix

The directional policy matrix is another way to consider portfolio of businesses, which categorizes business units according to how attractive the relevant market is in which they are operating and the competitive strength of the SBU (Strategic Business Unit) in that market. Unlike the simple four cells BCG matrix, the nine cells of the directional policy matrix acknowledge the possibility of the middle ground.

The value of each parameter for the industry attractiveness and business strengths are multiplied by the weighting factor. The obtained result will be a quantitative measure of industry attractiveness and the business units relative performance in the industry.

Industry Attractiveness

Business Unit Strengths

a) Market size b) Variability in demand c) Market growth rate d) Rivalry amongst the industries e) Industry profitability f) Macro-Environmental factors g) Global opportunities

a) Research and development b) Production capacity c) Growth in Market share d) Profit made e) Access to channels for distribution f) Profile of the organization

Source: http://www.quickmba.com/strategy/matrix/ge-mckinsey/

4.9 Core Competencies


Core competencies are the capabilities required for a business to achieve competitive advantage. It is the duty of the management to focus attention on competencies that require competitive advantage. According to Prahalad and Hamel (1990), core competencies should be dynamic which should change in response to the changes to companys environment. As and when the business changes and adapts to the new opportunities, core competencies have to adapt to the change. The four main attributes of sustainable competitive advantage are valuable, rare, difficult to imitate, difficult to substitute known as VIRO framework.

Source: http://static.flatworldknowledge.com/sites/all/files/imagecache/book/28982/fwkcarpenter-fig05_013.jpg

4.10 VIRO for Assessing the Sustainability of Resources and Capabilities

Source: Adapted from Prahalad and Hamel (1990)

4.11 Building blocks of competitive advantage


The four main building blocks that are necessary to build and sustain the competitive advantage are superior efficiency, quality, innovation and customer responsiveness core competencies (Hill and Jones 2007). These factors enable the company to differentiate its product by lowering its cost structure

Core Competency- Building Blocks of Competitive Advantage

Source: Adapted from Hill and Jones (2007) Superior Efficiency Core Competencies The superior efficiency is the quality output obtained regard to the quantity of inputs given. The inputs such as human resources, equipments, machineries etc should be efficiently used to get the desired output (Hill and Jones, 2007). Superior Quality Core Competencies When a product possess attributes such as form, features, performance, robustness, durability etc. better than all its competitors then the product is said to be a high quality product (Hill and Jones, 2007). Customers will perceive to buy such high quality products than the ones available in the market.

Superior Innovation Core Competencies Innovation is an indispensable feature of a firm to sustain successfully in the market. It has to constantly thrive to create new products and process in the business market. According to Hill and Jones (2007) there two main types of innovation i.e. product innovation and process innovation. Product innovation refers to creating new products for the market, whereas process innovation refers to framing a new process for the product to deliver it to the customers. Customer Responsiveness Core Competency The company should customize its products/services according to the changing unique needs and demands of the customers. It should constantly differentiate themselves from its competitors, empower employees to achieve high customer service and supply products to achieve customer responsiveness to lead to competitive advantage (Hill and Jones, 2007)

4.12 Operations strategy


Operations strategy reconciles the requirements of the market with the capabilities of operations resources. It is concerned with how the competitive environment is changing and what the operations have to do in order to meet the current and future challenges (Slack and Lewis, 2002). Strategic reconciliation

Source: Adapted from Slack and Lewis (2002)

4.13 Performance Objectives According to Slack & Lewis (2002), performance objectives are dimensions of an operations performance, with which it attempts to satisfy the market requirements. Their purpose is to articulate market requirements in a way that will be useful to operations. The dimensions in which the company wishes to compete are called competitive factors. These competitive factors for each operation can be categorized into five performance objectives viz. Quality, Speed, Dependability, Flexibility and Cost.

Performance Measures: Performance objectives Description

Quality

Quality is the appropriate specification to check if the products/services fit for purpose, they are supposed to do. The Fit for purpose quality includes two specifications: product/service specification and conformance to specification. The specification quality is multidimensional and can be separated into hard and soft aspects. The hard dimensions are concerned with the largely objective aspects of the product or service while the soft dimensions are associated with the aspects of personal interaction between customers and the product. The conformance quality is a concern of the operations itself. It relates to the operations ability to produce goods and services to their specification, reliably and consistently.

Speed

Speed indicates the time between the beginning of the operations and its end. It relates to events like, from the time customer requests a product/service to the time customer receives it. It also includes time to clarify the customers exact needs, the queuing time before operations resources.

Dependability

Dependability is used to mean, keeping delivery promises honoring the delivery time given to the customer. It is the other half of total delivery performance along with delivery speed. Dependability = due delivery time actual delivery time. When delivery is on time, the equation should be zero. Positive means it is early and negative means it is late. Due time could be the time originally requested by the customer or the time quoted by the operation. Flexibility means ability to be bent. They can exhibit a wide range of abilities and produce a greater variety of products or services. The cost and time of making a change are the friction elements of the flexibility. They define the response of the system. The types of flexibility that contribute to the competitiveness are: product/service flexibility, mix flexibility, volume flexibility and delivery flexibility.

Flexibility

Cost

For the companies that compete directly on price, cost will be the major performance objective. The lower the cost of producing products/services, the lower can be the price to their customers. It is also the financial input to the operation that enables it to produce its products and services. These financial inputs can be divided into three categories: operating expenditure, capital expenditure and working capital.

Source: Adapted from Slack and Lewis (2002)

4.14 Five Competitive Objectives

4.15 Digital Marketing Strategy


Digital marketing/electronic marketing is about the marketing execution by means of electronic media such as web, e-mail, interactive TV, wireless media in alignment with digital data about customer characteristics and behavior. They thrive to meet and exceed the customer needs and expectations to achieve the corporate goals (Jobber, 2007).

Business to Business communications

Effective communication is the key to the satisfaction of buyer expectations and is the main link between the organization and its environment. The systems used to transfer information and

meaning from people and machines, in both inter and intra- organizational contexts, can progress or hinder the implementation of corporate or operational strategies (Chris Fill, 2005).

According to Gilliland and Johnston (1997) the buy task involvement (BTI) in the b2b marketing communication model represents the degree to which the individual members feel the personal involvement with each purchase decision The antecedents associated with BTI (buy task involvement)

Relevance factor

Explanation

Personal

Refers to personal goals, any ego-related significance and the perceived personal consequences of the purchase decision. The higher the personal relevance, the higher the BTI.

Situational

Refers to the importance of the decision to the individual and to the firm. The higher the situational relevance, the higher the BTI

Opportunity to process

Refers to the level of distractions and noise that might impede exposure or prevent comprehension of a marketing message. The higher the number of opportunities to process information, the higher the BTI.

Ability to process

Refers to the knowledge of an individual has about the product under consideration as the more the individual knows, the greater his/her ability to process information about it. The greater the ability to process information, the

higher the BTI.

Source: Adapted from Gilliland and Johnston (1997)

CHAPTER 5 EVALUATIONS & IMPLICATIONS

Evaluations & Implications The evaluation is done to identify the strategic options that would enhance the competitiveness of Double Helix. From the view point of respondents and reply to the questionnaire form industry experts the following are evaluated and provided implications Any organization would prefer to take up projects from well recognized organizations. In our case Double Helix is an up coming and growing organization. For Double Helix to attain such a growth, Double Helix should look at it and learn what it is lacking with respect to its competitors. Once the competitors and the extra mile, competitive advantage is completely learnt and understood, then Double Helix should try to invest resources to study the lacking principles and try to grow up on them. Some of the lagging stones might be easy to achieve like, following a certified procedure or doing globally accepted process. But some technologies make take some time to come to pose. For examples, many multinations may invest wisely on research and development. Double Helix should find its way to do the same. For any organization which is in service industry and which is into scientism based technology as back bone, should strive to make its presence viable and capture global market. Once Double Helix proves its proof of Concept (POC) to many others and many organizations understand the concept of Double Helix, then from there on Double Helix would start to grow. Growing should be in a continuous way, the learning, development and training should happen simultaneously and the research and development should pave a way to cut through the competitors. Lets have a look at the respondents point of view on this topic of Double Helix's competitive advantage: Organizations have shown their interest towards the Genetic Database Double Helix will create from studying the logs, timbers of the project area. Once the logs and timbers of the project area is collected, samples are then examined and a genetic database in created based on the DNA samples extracted from those timber and logs collected from the

project area. These samples are protected well by Double Helix until the end of the project. Thus the DNA samples are collected and a Genetic Database is created. This database will be now used by the people of the project area to protect the forest. The organization offering project to Double Helix expects Double Helix to follow right procedures and policies while creating this database.

CHAPTER 6 RECOMMENDATIONS

Recommendation and Benefit to be arrived

Double Helix can think of providing learning and training to the local people of Project area, so that the organization which will take Double Helix project can also get convinced as the chance of employability increases. Even Government of the Project area will be happy to encourage such a company which will provide employment opportunity to its people. Thus Double Helix expands its chances of capturing new market with this competitive edge. The Genetic Database which is a by product of this project can be published to public for research activity, this value added service is also a highlight of Double Helix, as this Database can be used for Research and Development activity in regards to Bio-Diversity. These research and Development activity can throw lights on the hidden nature and its treasure to the nation. Well regulated project management, employee management and Human Resource policies to play a major part in the organization while the projects are taken up globally.

CHAPTER 7 CONCLUSION

Conclusion I would recommend the following as an outcome of the project based on the respondents view and interview conducted with the industry specialist that, Double Helix is recommended to follow globally accepted and certified procedures for its process to get acclaimed in the market. Double Helix is advised and suggested to invest more on Research and Development, as this project deals with high scientific methods, so the organization should invest more on research and development. And newer technologies. Double Helix is advices to have high learning and training attitude people to be employed and the process should strive to attain continuous improvement and development. The data protection to be taken care of. High strict policies to be framed to eye on the regulations and policies in terms of Business continuity, data protection, employee data disclosure, etc. The data thus collected from the respective Project area to be maintained safe without reaching any anti social group. And to be used only for constructive purpose. I thank all of you once again deeply whosoever helped me personally and officially in completing this thesis successfully.

BIBLIOGRAPHY

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