Gender Wage Discrimination in Pakistan

| Gender Wage Discrimination in Pakistan| Evidence from Pakistan 2008/09 and 2010/11| | | | Table of Contents Introduction2 Literature Review2 Methodology3 Variables Used – Characteristics of Workers5 Results7 Discussion7 Bibliography8 Appendix A9 Selectivity Bias Logit Regression Results:9 Introduction This paper explores the dynamics of gender wage discrimination in Pakistan for two data sets; Labour Force Survey for the year 2008/09 and 2010/11. We will explore whether or not women are discriminated against, as it has been suggested for a predominantly Islamic country like Pakistan.Labour theory addresses many reasons for wage discrimination. For the purposes of this research we will concentrate on ‘employer wage discrimination’. Following this our research will be aimed at discovering if women are paid less than their male counter-parts especially with the same set of characteristics. For this purpose we will use the Oaxaca-Blinder method to calculate the coef ficient for discrimination across genders. Literature Review The basis of this paper is the work done by Oaxaca and Blinder in 1973 about wage discrimination models.In the paper ‘Interpreting the Decomposition of the Gender Earnings Gap’ (Giaimo R. 2007) this method has been applied to find out how different characteristics change the discriminatory behaviour of employers in Italy. Oaxaca’s method for calculating discrimination was further adapted in the paper ‘Gender Wage Discrimination at Quantiles’ (Javier Gardeazabal 2005), and was used to calculate discrimination coefficients for quintiles. In a study conducted in India (Tilak 1980), it was found that the incidence of unemployment was higher for women than for men with the same characteristics.In this study the only characteristic that was taken was education. This is a different angle to look at discrimination from what this paper will do. Rather than looking at the unemployed, this paper will see the women in the labour force and if they face discrimination with respect to their wages. However, the underlying aim and also the hypothesis formed are the same. The paper ‘Wage Differentials and Gender Discrimination: Changes in Sweden 1981-98’ (Mats Johansson 2005) explored the wage gaps between men and women in Sweden.They found that the wage gap was 14%-18% during the 1990’s. Their study also indicated that this difference could not be explained by applying the job requirements and qualifications to women’s wage function. The conclusion was that there is undoubtedly some other factors other than the characteristics of the workers that determined the wages in the Labour Market. Methodology This paper calculated a coefficient for Gender Wage Discrimination from the Oaxaca-Blinder decomposition. D= Xf? m-Bf+ ? m(Xm-Xf) Here ‘? ’ is a vector of characteristics of workers.Therefore, the first part of the equation shows the wage differenti al between males and females on the basis of characteristics. Second part of the equation normalizes characteristics, for females in this instance, and then subtracts the wage differential based on characteristics, to give us the overall differential based on discrimination. As a control, we also work out the converse of this Oaxaca Blinder Decomposition as follows; D= Xm? m-Bf+ ? f(Xm-Xf) To control for selectivity bias, we have also used the ‘Heckman Procedure’.A multi-variable Logit model was run and three variables (Lambda1, Lambda 2 and Lambda3) were calculated to act as control for variables missed in our model. This discrimination coefficient has been calculated for two data sets using characteristics such as age, marital status, education level, province, region, professional trainings and status in the family. These characteristics have been selected after being shown significant as the determinant of wage. Natural log of wages was the dependant variable in the following regression; Table [ 1 ]: Wage Determinants – LFS 2008/09Table [ 2 ]: Wage Determinants – LFS 2010/11 Our results are much better for the data set of 2010/11. The signs of education are expected. For the data set of 2008/09, signs for education are positive which does not support theory. Even after efforts to remove multi-colinearity, they still show positive signs. Most of the variables in the regression are also insignificant. However, when we take the data for LFS 2010/11, and correct it for selectivity bias, we get much better results. Most of the variables are significant as well as show the correct signs. The same algorithm was applied to both the data sets, and the same variables have been taken). Results of Logit models for correcting selectivity bias are attached in Appendix A. Variables Used – Characteristics of Workers Summary tables from LFS 2010/11 1. Age * Theory suggests that this is one of the most important determinants of peopleâ€⠄¢s decision to work. 2. Marital Status * This variable was taken as a dummy variable in the regression. * It is a significant variable in the decision to work, especially in developing economies like Pakistan. 3. Province This is also taken as a dummy. The Baluchistan province was omitted from this analysis. However, the calculations of the Oaxaca Blinder method take this omitted variable into account. This is because the method takes the vectors of the estimated regression equation. 4. Region * Whether a person is from a Rural or urban background has impact on the opportunities and the job growth pattern. 5. Education Level * This is linked directly with the variable wage. * This is again taken as a dummy variable, and higher education was omitted from the regression. 6. Migration (Rural-Urban) Although not a very significant variable in our regression, there are other empirical studies that have shown how the migrated families have better opportunities for work than those who do not. 7. Literacy * This is a dummy variable, and is significant in our analysis. 8. Selectivity Bias Variables * These are Lambda’s in the model. And have been calculated using the Heckman Procedure for controlling selectivity bias. Results To find the discrimination coefficient a matrix exercise was done in Stata using the data from LFS 2007/08. This presented the following equation; D= Xf? m-Bf+ ? Xm-Xf D=10. 030812+-7. 4166332 D= 2. 614212 The discrimination coefficient for LFS 2010/11 was calculated as follows: D= Xm? m-Bf+ ? fXm-Xf D=0. 11964462+0. 31341527 D= 0. 43305989 Just looking at the numbers we can say that discrimination have gone down significantly over the last two years. Whether this is actually the case, or this is just due to the problems in the data, we cannot be sure. However, we think that the result for 2010/11 is a better estimate overall. The results show that women are at a significant disadvantage in Pakistan’s Labour Force. These results are quite expected.However, we also need to take the problems in data collection and measurement into account. Many of the cottage and small scale industries are not counted in the LFS and they are a prime source of employment for women in Pakistan. Discussion There are many limitations of this study. First of all this can be made more powerful if panel data is used, however, there are no sources of such data. Secondly, an easy method of expanding this study would be to do an inter year comparative study. There are more limitations that are related directly to the data that we have used.Many questions have been raised about the methodology and the authenticity of the data in Labour Force Survey of Pakistan. However, this limitation is beyond our control. There have also been questions raised about the Oaxaca-Blinder method of calculating wage discrimination. While we have attempted to review paper that have used this technique and have achieved good results, there are still many questi ons about the technique, still. There are few policy implications that we can derive from these results, especially if we look at the significance levels in the data for 2008/09.However, this paper does prove to some extent that there is a problem of gender wage discrimination is Pakistan. We can attribute a lot of this to social factors as well; women do not want to work in most professions, so we can also argue that there may be a case for discrimination by the employees rather than the employers. Bibliography Giaimo R. , Bono F. , Lo Magno G. L. â€Å"Interpreting the Decomposition of the Gender Earning Gap. † University of Palermo Journal, 2007. International Standard Industrial Classification of all Economic Activities (ISIC-Rev. 2, 1968). ILO. 2012. http://laborsta. lo. org/applv8/data/isic2e. html (accessed 2012). Javier Gardeazabal, Arantza Ugidos. â€Å"Gender Wage Discrimination at Quantiles. † Journal of Population Economics, 2005. Mats Johansson, Katarina K atz, Hakan Nyman. â€Å"Wage Differentials and Gender Discrimination: Changes in Sweden 1981-98. † Acta Sociologica, 2005. Stat. Stata. 2012. http://www. stata. com/meeting/5german/SINNING_stata_presentation. pdf. Tilak, Jandhyala B. G. â€Å"Education and Labour Market Discrimination. † Indian Journal of Industrial Relations , 1980. Appendix A Selectivity Bias Logit Regression Results: LFS 2008/09 LFS 2010/11

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Herbig â€Å"The average American is exposed to 61,556 words from the mass media each day which works out to just under 4,000 words per waking hour, about 60 words per waking minute per person per day. † (Herbig & Kramer, 1994). As also data changes so mass media can keep changing he way the population views the different culture and change things on their own. Media and advertising work together because of their interdependent relationship. Popular culture bombards society by billboards, television, advertisements, radio, Internet, and any other imaginable form. Advertisements drawl a large amount of attention because of the persuasive nature of the context. Advertising serves as a wa y to interact with the audience, but more specifically targets people who are preoccupied with the values of consumerism. These people purchase commodity goods in large amounts. 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A person cannot avoid mass media unless he or she had no form of electronics nor did he or she walk outside or read the newspaper. Therefore, each decision and thought created in the minds of Americans is somehow affected by American popular culture. The decisions do not always follow the crowd but move against it, either way a person can make the decision to follow or drift alone. These decisions, methods of thinking, actions and reactions have all developed into cultural values of the American people. Cultural values revolve around popular culture because they create the ideals that people live by. For example, the way a family dresses the children of the family or allows the teenagers to dress in a family is determined by the reactions of popular culture. Additionally, religion is another area of culture that can be dominated by popular culture. â€Å"A nation's culture resides in the hearts and in the soul of its people† Mohandas Gandhi. References Herbig, P. A. , & Kramer, H. (1994). The effect of information overload on the innovation choice process. Journal of Consumer marketing, 11(2), 45. 54. Retrieved February 19, 2010, from http://web. ebscohost. com/ehost/detail? vid=4&hid=112&sid=63a6ab34-57d5-423b-956c-e5543b814d08%40sessionmgr108. Merriam-Webster. (2009). Retrieved February 19, 2010, from http://www. search. eb. com. ezproxy. apollolibrary. com/dictionary? va=enculturation&query=enculturation.

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The Ramayana and the Mahabharata are both â€Å"epics of the people;† they are ethnic stories that have been orally transmitted over the centuries and recorded in a collective text. They â€Å"reflect the ethos and the psyche† of the Indian people. These great epics have shaped India’s values, beliefs, and lifestyles. They are the origins of the social, religious and cultural history of India. The caste system didn’t arrive with the British East Indian Company in the 1700’s, but between 1500 and 2000 B.C., when nomads known as the Aryan’s started to migrate through the Hindu Kush passes and down into the Indus Valley. These tall, light skinned warrior types quickly subdued the short, dark-skinned indigenous peoples of northwestern India. These people, known as the Dravidian’s fled to the south for refuge. Taking control of their new domain, they forced their â€Å"Divine Knowledge†Ã¢â‚¬â€recorded later in the Vedas (1200-600 B.C.)—on their new subjects. The Rig Veda (1300-100 B.C.) was the main religious and socio-economic text. These philosophical and religious texts were said to have originated from the Gods—Aryan Gods—and later texts dated 600 to 400 B.C. were written by the Divine. Because of the domination of the Aryan people and the popularity of these texts, the period between 1500 B.C. and 500 B.C. is known at the Vedic period of Indian history—and this is where the caste system originated. Long before the Aryans arrived in the Indus Valley, they were already divided into three different classes: the warriors, the priest, and the cultivators; with the warriors on top of the social structure, and the priest, or Brahman, second. These light-skinned warriors had no desired to mix with the dark-skinned Dravidians that they had conquered. To prevent their ethic traits from being polluted by the dasyu, or slaves, they prohibited intermarriage between the two distinct ethnic groups; thus a fourth class was created to do most of the manual labor. As the Aryans and the local inhabitants mingled, Hinduism developed. The Hindu caste system would evolve from this ideal that ethnic traits, such as ones skin color determined ones social position—with lighter skin on the top, and those with darker skin on the bottom, and reinforced by the religious philosophies of the Vedas. Before the Vedic civilization of the Aryans, archaeological evidence suggests that the Harappan civilization was composed of many kinds of ethnic groups that were divided into different classes depending on their wealth. Because of evidence such as a permanent and sophisticated city structure and a â€Å"uniformity of weights and measures,† it is widely believed that this heterogeneous population had a centralized government who was ruled by a group of people, perhaps Brahmin, or priest. However, some people don’t believe that there was a centralized government at all since there were no holy temples uncovered, that the evidence just points to a sophisticated trade system. This second group believes that the Aryans weren’t invaders, but a group that lived amongst the existing Harappan civilization, who became powerful and were able to dominate the others. According to Robert Heine-GeldernIt, the second isn’t likely, because archeological evidence points to a people who were of Western origin; perhaps Transcaucasia. If the first were true, that would explain how the invading Aryans eventually adapted caste structure with the Brahmin class on top. After they already established themselves as the ruling class, over centuries, as they mingled with the indigenous peoples, they may have adopted elements of hierarchy of the local faith, with the priests, or Brahmin, on the top of the pyramid. There were four different castes, called varnas, in India: Brahmins, Kshatriyas, Vaishyas, and Shudras. The highest caste was the Brahmins. They are the priests and philosophers. Originally ranked number two on the Varna system, but rose significantly above the warrior class to number one. The second ranking castes were the Kshatriya’s. They were initially warriors and highest ranking. The third ranking caste were the Vaishyas, they were the workers; farmers, artisans, metal workers, and trades peoples. The lowest ranking of the Varna’s were the Shudras. They are the peasants, servants, farm hands, and laborers. There were also subdivisions in every caste called jati, which further broke down people’s hereditary social status and occupational group. Historically, the vocation you went into was hereditary and passed down from your father. As the civilization expanded, sometimes one could get away with going into a different line of work, if it was within their same caste. The structure of the traditional Indian village economy was reliant on a hereditary caste system. William and Charlotte Wiser called it the jajmani system, where a wealthy Brahman landlord would provide annual sustenance of his harvest for services of the different village servants and artisans throughout the year. The heirs to each particular service member, whether it be the village barber, blacksmith, astrologer, accountant, doctor, or whatever their particular job was, would be expected to take over for their fathers. Women were only allowed to be married off to men in the same caste as they were. By keeping everything hereditary, those in power were guaranteed to stay in power, and their superior genes to remain unpolluted by lower caste. Within the Jamani system, there was no chance of upward mobility; each individual had a fixed economic and social status that was essential to village life. When the Aryans first arrived, the warrior class was on the top of the social structure, with the priest, or Brahmin, below them. As the conquering Aryans expanded eastward over the next five centuries, they took on some characteristics of the native Indians they had conquered, the tribal structure being one of them. Since it is known that priest-kings ruled the pre-Aryan Harappa, Wolpert suggests that the Aryans learned from their conquered subjects to place more value on the counsel of their own Brahmans. This â€Å"revelation† that the Brahmins had over the warrior class, and subsequently, the Raj who were born Kshatriyas, or warriors, can be found in the Rig Veda hymn, the â€Å"Sacrifice of the Cosmic Man.† Division of occupational group into castes was applied according to the ancient Aryan-Hindu book, the Rig Veda. According to legend of the â€Å"Sacrifice of the Cosmic Man,† the first super-being, Purush, allowed himself to be destroyed to create a human society out of different parts of his body: the Brahmins from his mouth, or â€Å"thousand heads†, the Kshatriyas from his arms, the Vaishyas from his thighs, and the Shudras from his feet. The highest caste was the Brahmins, who were the priest, because the brain holds knowledge. The second highest caste was the Kshatriyas, who were warriors, because the arms resemble strength. The caste below the warrior class was the merchants, known as the Vaishyas. These top three were considered â€Å"twice born,† their second birth making them initiated into the Hindu faith. On the bottom were the Shudras, or the peasants, or serfs, who were on their feet doing the manual labor, and considered too â€Å"unclean† to be born again. The â€Å"Sacrifice of the Cosmic Man† describes how the caste system came into existence, not as a human invention, but one created by the gods. Later, as the Aryans expanded and more primitive people came into the mix, they were considered too â€Å"polluted† to be part of the four-fold Varna system, and would become regarded as â€Å"untouchables.† Out of fear of being polluted by these outsiders, strict rules were enforced to prevent any contact with the higher castes; to include strict communal procedures. These rules were designed to isolate the untouchables from the rest of Hindu society, but at the same time enforce their need to do all of the â€Å"unclean† work that was too polluting for the rest of the more dignified classes; such as butchering of dead animals, or disposing of the dead. The Hindu doctrine of Karma further rationalizes the caste system as duties one is obligated to by birth. Karma is the â€Å"moral law of cause and effect.† The position on is born into is a reflection of how they were in their previous life; if someone is born into a lower class, than it is because of their bad Karma from a previous life. If one abides by the rules given to them in this life, they will move up in the next life. As Smith puts it, â€Å"one of the main entailments of the caste system is â€Å"the belief in Karma and the cycle of rebirth whereby ones social position in this life is ethically determined by moral actions in past lives.† This belief in reincarnation prevented people from questioning, or even revolting against, the caste system. The caste system received further religious approval in the Indian epic, The Bhagavad Gita; which is part of the Mahabharata. They â€Å"prove† that the caste system isn’t just man’s law, but divine law. In the Bhagavad Gita, the Hindu god Krishna says â€Å"the distinction of castes, guna, and karma have come from me. I am their cause† (4:13). When Krishna tells Arjuna that, â€Å"No creature, whether born on earth or among the gods in heaven is free from the conditioning of the three gunas. The different responsibilities found in the social order – distinguishing Brahmin, Kshatriya, vaishya, and shudra have their roots in this conditioning† (18:40-41), he is very clear that everyone must follow the caste system. He goes on to explain the guna’s, or acceptable qualities, in retrospect to the traits and roles of the four castes. By doing the duties one is born to, and not someone else, he can never come to grief—even if it is imperfect (18:42-49). Even though scholars like Dirk may argue that the caste system has its roots in colonization, ancient Hindu texts dating back to the Vedic age prove that the Indian caste system had its root deep in traditional Indian society long before the East Indian Company began to colonize India. The modern caste system has its roots in the Islamic-Hindu era. Under Munghal rule in the tenth century, many Indian’s weren’t encouraged to convert to Islam; it wasn’t until the 16th and 17th centuries that a mass conversion to Islam appeared. The religious system in India that was the basis for philosophical and ethical ideals that influenced the daily life of the India people did not have a name prior to the arrival of Islam in India. Even though there were many different religions in the different Indian communities at the time, they all had a common unity in their acceptance of the basic legends, myths, and moral teachings that formed the ideals, or world view, on the meaning of life. The name that Muslims gave this common religious unity was â€Å"Hinduism.† This disproves Dirks claim that â€Å"caste, as we know it today, is a modern phenomenon, that is, specifically, the product of a historical encounter of India and Western rule†¦making caste a central symbol of Indian society.† The Muslims made it the central symbol of Indian society when they named it Hinduism, to establish it separate from their Islamic society. As Muslims started intermingling with Hindus, it further complicated the caste system. Because Muslims rejected the Hindu belief of people born with inequality, the Bhakti movement sprang up from the 14th to 16th centuries; long before Dirks claims that the English started influencing, and putting a negative stigma, on the caste system. Inferior castes would find other forms of religious expression separate from Brahmin priest. Castes broke up, and new jati’s formed that would identify each caste based on their belief system. The great Indian epic, the Ramayana, that was popularized during the medieval period, describes how Rama and Krishna were incarnations of Lord Vishnu, and would repeatedly come down to earth and mingle with all of God’s people; not just the Brahmins. The Bhakti philosophers taught that all individuals, regardless of their status in life, could have an intimate relationship with God. This differed greatly from the Aryans concept that taught inequality in relation to God and only the priest, or Brahmins, could speak with God. Lower castes were even forbidden from reading the Vedas or entering Hindu religious temples. Medieval India also changed the hereditary occupation system. Men were no longer restricted to the position that was determined to them by birth. There was now chance of upward mobilization within each jati; not the main caste classification. Not just individuals, but Jati groups, were able to improve their status in society. In order to not go against religious teachings, families would have to save up enough money to pay poor Brahmin to preform rituals that would elevate the social standing of a particular family. They would then have to change occupations, and practices, appropriate to the social group that they were being elevated to. Another way to move up socially would be to serve in the military; military service wouldn’t necessarily allow you to move up to another Caste, but your jati (or social standing within caste) would move up accordingly. Life for Indian’s was very different under Islamic rule than it was under the Aryans. The arrival of the East Indian Company stirred up the traditional caste system; but it didn’t by any means â€Å"create† a modern caste system, as Dirks suggests; that was already underway with the arrival of Islam. The English tried to, either directly or indirectly, make life better for those that were discriminated against under a centuries old system of legal oppression. Even though the English had a hierarchy, people were able to upward mobilize and all citizens were bound by the same laws. Under the Indian caste system, there was no upward mobilization, people often died in the same caste they were born in. This was disrupted slightly during the arrival of industrialization and mass trade that the East Indian Company brought with it. The centuries old tradition of patriarchal hereditary caste occupation was disturbed by industrialization and imports from other British colonies. People whose occupations had a hand in producing goods that were now being imported or made in factories were now out of jobs. Factory jobs, or other Western type jobs, weren’t hereditary. They had no choice but to find new jobs, often jobs that weren’t classified under a particular caste, such as public works or factory type jobs. As English colonization expanded, there was further concern amongst the higher castes about intermingling between castes—especially where public works projects and service in the military was concerned. There was fear amongst the higher castes that physical contact between the pure and impure castes was inevitable in such crowded places as train stations, public wells, or closed quarters on ships. There were concerns amongst Hindu’s about serving in the British military. In the military, the â€Å"soldiers were of a different caste now—neither so fine, nor so tall as they were before.† In the military, the British were the only superior, and all Hindus serving were treated as if they were the same caste, having to work side-by-side with members of different castes. However, after the uprisings of 1857, sepoys who were of higher caste maintained their caste and religion. The later was extremely important, because any infringement on their religion could result in loss of caste. Those that continued to revolt were punished by having to clean the blood of the English men, women, and children, who were massacred. They were forced to do this dishonor, which would have resulted in loss of caste under their Hindu faith, before being executed for their heinous crimes. In this retrospect, the English used the Hindu caste system as vengeance for acts against their ‘white’ superiority. The British didn’t create the caste system, or intend to exploit it. They tried to make their new Indian subjects a functional part of their society, as well as rectify the aspects of the caste system they saw as unjust. Traditional Indian law was loosely based off of parochial and sacred law that was loosely interpreted by different Brahmin; there was no uniform justice system. There were also different sets of rules and laws for different castes. A lower caste could be severely punished for the same crime that wouldn’t be punishable for a higher caste. There is no doubt that the English exploit the caste system for personal gain, but they also made great strides in individual equality before the law. Under British Law, all individuals were equal before the laws; therefore if a higher caste and lower caste member committed the same crime, they were both subject to the same punishments; and discrimination against lower caste was now against the law. As the Rudolph’s say in there book The Modernity of Tradition: Political Development in India, the transformed state has helped, â€Å"India’s peasant society make a success of representative democracy and fostered the growth of equality by making Indians less separate and more alike.† In that retrospect, England colonization may have had a more positive effect on an already oppressive system. The spread of Christianity was promising for those born of lower caste. They were offered an education; that was formally punishable to lower caste members. Many of the lower caste and untouchables converted to Christianity to escape their given statuses. Those that converted were freed of their previous identity, and were no longer considered part of a particular caste; although their social status often stayed the same. This may not have alleviated their problems, but it was a step in the right direction. Those that converted to Christianity could now get an education, or apprenticing under a Christian missionary. They could now aspire to do something different than what they were ‘born’ to do. There was now the hope of a better life, that hadn’t existed before under Hinduism. Today people have mistaken Varnas for caste and treat them as identical. Varnas are God created and caste is not. Varnas are conditioned with one’s actions and desires based on Gunas. The caste is manmade. It is simply a social institution and can easily be changed and modified according to changing needs of society. Caste-by-birth was never the original intent nor it ever was the basis upon which the Varnas were constituted, Sutra says that a person should be engaged only in a field of activity that he is capable of doing. In 1891, the British established the Census of India as an attempt to better understand the caste system in relation to occupation, religion, and status. In 1935, the British in India finally came up with a list of four-hundred tribal groups and untouchables. Under British reform, they would be put on a list as Scheduled Castes and Scheduled Tribes, and would receive special privileges in order to â€Å"overcome deprivation and discrimination.† In that retrospect, the British government started affirmative action in India for those that had been oppressed under the centuries old Indian Caste System. The English threatened the Hindu way of life that had existed over centuries and was reinforced by Hindu scripture. When Muslims started mingling with the Hindus, the caste system was altered, but the basic beliefs of karma and existence remained a unifying factor. When the East Indian Company started colonizing India, they didn’t just stir things up, but threatened the religious aspect of the Indian caste system that kept those on the bottom subservient to the top castes. Without intending to, the English got the nationalist movement going; although it would go in two different directions depending on what side of the fence one was on. Mahatma Gandhi was an influential leader in the Nationalist Movement during British rule; he believed that he could change untouchability in the Hindu religion, and started calling them â€Å"Harijans,† meaning God’s children. When reform within the Hindu religion started to look bleak, Dalit leaders started to advocate for a separate electorate for the Dalit’s. On the other end of the spectrum from Gandhi was Dr. Bhimrao Ramji Ambedkar, who rose up from a community of untouchables and fought for political equality for Delits. Both continued their campaigns after Indian independence. But after independence, neither would be successful without the British to advocate for them. The British brought with them industrialization, urbanization, literacy, social mobilization, and political democracy. However, it is the Indian caste system today that is preventing India from progressing as a modern nation. Although people are now crossing vague occupational lines due to technology, India still has a long way to go to break the deep-rooted deep root belief that the Hindu religious texts, the Varnas, justify caste inequality as birth right. But thanks to the British, they got a kick in the right direction. Works Cited Armstrong, Karen. The Great Transformation: The Beginning of our Religious Traditions. New York: Alfred A. Knopf, 2006. Print. Easwaran, Eknath. The Bhagavad Gita. Canada: Nilgiri Press, 2007. Print. Dirks, Nicholas. Castes of Mind: Colonialism and the Making of Modern India. Princeton University Press, 2001. eBook. Judd, Denis. The Lion and the Tiger: The Rise and Fall of the British Raj. Oxford: Oxford University Press, 2004. Print. Heine-Geldern, Robert. â€Å"The Coming of the Aryans and the End of the Harappa Civilization.† Man Vol. 56, No. 151 (Oct, 1956): 136-139. Hoover, James W., History of the World: India in the Islamic Era and Southeast Asia. Austin: Steck-Vaughn Co., 1997. Print. Lahiri, R.K., â€Å"Caste System in Hinduism† Boloji.com (November 2005) http://www.boloji.com/index.cfm?md=Contentsd=ArticlesArticleID=1211, accessed, November 15, 2012. Lewis, Oscar and Victor Barnouw. â€Å"Caste and the Jajmani System in a North Indian Village.† The Scientific Monthly Vol. 83, No. 2 (Aug, 1956): 66-81. Malloy, Michael. Experiencing the World’s Religions: Tradition, Challenge, and Change. Calif ornia: Mayfield Publishing Co., 1999. Print. Warshaw, Steven. India Emerges: A Concise History of India from its Origin to the Present. Berkley: Diablo Press, 1989. Print. Wolpert, Stanley. A New History of India. 6th ed. New York: Oxford University Press, 2000. Print. Mountjoy, Shane. Rivers in World History: The Indus River. Philadelphia: Chelsea House Publishers, 2005. Print. Rudolph, Lloyd I. and Susanne Hoeber. The Modernity of Tradition: Political Development in India. Chicago: University of Chicago Press, 1984. eBook. Sekhon, Joti. Modern India. Boston: McGraw-Hill, 2000. Print. Smith, Brian K. Classifying the Universe: the Ancient Indian Varna System and the Origins of Caste. New York: Oxford Press, 1994. Print. [ 1 ]. â€Å"Lifestyles, Values, and Beliefs† (India, National Portal of India) http://india.gov.in/knowindia/culture_heritage.php?id=69, accessed 10 November, 2012; â€Å"Ethnicity of India† (India, National Portal of India) http://india.gov.in/knowindia/culture_heritage.php?id=70, accessed 10 November 2012; â€Å"Ancient History† (India, National Portal of India) http://india.gov.in/knowindia/culture_heritage.php?id=2, accessed 10 November 2012). [ 2 ]. â€Å"Indian Literature through the Ages† (India, Ministry of Culture, Government of India) http://ccrtindia.gov.in/literaryarts.htm, accessed 11 November 2012. [ 3 ]. Steven Warshaw, India Emerges: A Concise History of India from its Origin to the Present (Berkley: Diablo Press, 1989), 16-17. [ 4 ]. Stanley Wolpert, A New History of India, 6th ed (New York: Oxford University Press, 2000), 27; Warshaw, 17 [ 5 ]. Karen Armstrong, The Great Transformation: The Beginning of our Religious Traditions (New York: Alfred A. Knopf, 2006), 13-14; Shane Mountjoy, Rivers in World History: The Indus River (Philadelphia: Chelsea House Publishers, 2005), 17-21. [ 6 ]. Robert Heine-Geldern, â€Å"The Coming of the Aryans and the End of the Harappa Civilization,† Man Vol. 56, No. 151 (Oct, 1956): 136 [ 7 ]. Oscar Lewis and Victor Barnouw, â€Å"Caste and the Jajmani System in a North Indian Village,† The Scientific Monthly Vol. 83, No. 2 (Aug, 1956): 66. [ 8 ]. Wolpert, 29. [ 9 ]. Armstrong, 25; Michael Malloy, Experiencing the World’s Religions: Tradition, Challenge, and Change (California: Mayfield Publishing Co., 1999), 119. [ 10 ]. Wolpert, 29-30; 119. [ 11 ]. Wolpert, 119-120 [ 12 ]. Molloy, 67. [ 13 ]. Brian K. Smith, Classifying the Universe: the Ancient Indian Varna System and the Origins of Caste (New York: Oxford Press, 1994), 10. [ 14 ]. Eknath Easwaran, The Bhagavad Gita (Canada: Nilgiri Press, 2007), 117; 261-262. [ 15 ]. Dirks, 5. [ 16 ]. James W. Hoover, History of the World: India in the Islamic Era and Southeast Asia (Austin: Steck-Vaughn Co., 1997), 20-22. [ 17 ]. Hoover, 22-23. [ 18 ]. Denis Judd, The Lion and the Tiger: The Rise and Fall of the British Raj (Oxford: Oxford University Press, 2004), 67-68. [ 19 ]. Judd, 74. [ 20 ]. Judd, 73-83. [ 21 ]. Lloyd I. and Susanne Hoeber Rudolph, The Modernity of Tradition: Political Development in India (Chicago: University of Chicago Press, 1984), 12. [ 22 ]. Judd, 63-64. [ 23 ]. Dr. R.K. Lahiri, â€Å"Caste System in Hinduism† Boloji.com (November 2005) http://www.boloji.com/index.cfm?md=Contentsd=ArticlesArticleID=1211, accessed, November 15, 2012. [ 24 ]. Joti Sekhon, Modern India (Boston: McGraw-Hill, 2000), 48. [ 25 ]. Untouchables thought the name Harijan, that

The Tragedy Of Macbeth Essay Example for Free

The Tragedy Of Macbeth Essay According to Aristotles definition Shakespeares work of Macbeth is classed as a tragedy. In order for a piece of work to be called a tragedy it must follow nine rules and one of which is the rule I will be focusing on today. This rule is The tragic hero effectively evokes both pity and fear. In this essay I will be answering the question to what extent does Shakespeare create pity for Macbeth? The first point in the play Shakespeare creates pity for Macbeth is in Act 1 Scene 7, where in this scene Macbeth presents his first soliloquy to the audience, and it is this soliloquy, which creates pity for Macbeth. Throughout the soliloquy Macbeth mentions two separate things regarding the killing of Duncan, at one point he says Against the deep damnation of his taking off. The phrase taking off refers to the killing of the king, another example is upon the sightless couriers of the air, shall blow the horrid deed in every eye. When Macbeth refers to the deed and the blow he is talking about the killing of Duncan. Macbeth is using euphemisms when referring to the killing of Duncan because he is lying to himself, He is trying to get the killing of Duncan out of his mind so he can continue with his life, he continues and says I have no spur to prick the side of my intent, but only vaulting ambition, which oer-leaps itself and falls on the other side. This quotation means that Macbeths only motive in this attack and murder was ambition. This also tells us that Macbeth was pushed into the deed that he committed. Later in this scene we see that Macbeth was indeed persuaded by Lady Macbeth to do the act, in line 50 Lady Macbeth says When you durst do it, then you were a man; in this quotation she is questioning his manhood, she is saying that Macbeth is not a man but if he kills Duncan then he is a man. The evidence shown strongly suggests that Act 1 Scene 7 does create pity for Macbeth. The next part of the play, which is significant in creating pity for Macbeth, is Act 2 Scene 1 which includes Macbeths second soliloquy Is this a dagger I see before me, the handle towards my hand? Come let me clutch thee: Macbeth, in this quotation, is hallucinating; he is seeing a dagger in front of him. It is like he has foreseen the future and that it is almost inviting him to murder Duncan. I have thee not yet I see thee still. Art thou not, fatal vision, sensible to feeling as to sight? Or art thou but a dagger of the mind, a false creation? He is questioning the dagger, he can see it but he cannot feel it so he believes it is just a figment of his imagination. Then he says Proceeding from a heat oppressed brain? I see thee yet, in a form as palpable. He is saying he is ill and blaming the fact that he has a temperature, heat oppressed brain and that is why he is seeing those images. As the soliloquy is about to finish Macbeth hears a bell ring I go and it is done, the bell invites me, hear it not, Duncan; for it is a knell, that summons thee to heaven, or to hell, He thinks that the ringing of the bell is a sign for him to kill Duncan and then goes. It is felt from this scene that pity has been created because it is showing that Macbeth is unstable and his mind is not at its sharpest and at its best. As the play continues there is meant to be more pity created for Macbeth in Act 3 Scene 1 where Macbeth has his third soliloquy through lines 50 61. Macbeth compares himself to Banquo, He sees Banquo as valiant and royal but sees himself as evil and harsh. It is rather obvious in these two lines that Shakespeare is trying to create sympathy and pity for Macbeth. In lines 61 65 Macbeth describes the crown and the sceptre (him being king) as fruitless and Barren, He describes the monarchy as fruitless because when he dies he will have no sons or daughters to pass the crown down on to, he is also referring to this when he says Thence to be wrenchd with an unlineal hand. Which means that a non-member of his family will take the crown from him. Later on in the scene through lines 65 73 he calls upon both fate and darkness as his allies to help him in his evil ways. This implies Macbeth is unstable and desperate as he needs help from two different things, it also implies he needs help t o cope with his life. Once again pity is created for Macbeth but he manages to destroy the sympathy and pity as he orders the slaughtering of Banquo but Banquos ally Fleance escapes. Act 3 Scene 4 is one of the most significant and meaningful scenes in the entire play and is the Banqueting scene. In this scene Macbeth is staging a banquet at his home and everyone in Scottish importance is in attendance, between lines 35 and 40 the ghost of Banquo enters the room and sits in the throne. Macbeth is the only one in the room that can see the ghost and begins to become emotionally upset which in turn makes the audience feel sorry for him. He begins to act strangely and guests begin to get suspicious, Lady Macbeth then says sit, worthy friends: my lord is often thus: this is clearly an excuse to stop guests getting suspicious, but there is a sense of irony in this as no-one would like a king ruling there country who is mentally unstable, and with that Macbeth has generated more sympathy for himself. Lady Macbeth then takes her husband aside and says Why do you make such faces? When alls done, you look but on a stool This clearly shows that in this stage of the Play Lady Macbeth is the one who is in charge and the one who has a clear head. There is another instance in Scene 4 where Shakespeare creates pity for Macbeth, it is shortly after the murder of Banquo one of the murderers comes in to tell Macbeth that Fleance has escaped death, Macbeth then comes out and says Then comes my fit again: I had else been perfect; whole as a marble, founded as a rock, as broad and general as the casing air: but now I am cabbind, cribbd, cofind, bound into saucy doubts and fears. but Banquos safe? In this quote Macbeth is clearly panicking, his plans were perfect but have now been ruined. The reference to marble only develops the idea of his perfect plans, as we see marble as a perfect and solid stone. This scene clearly evokes a lot of pity for Macbeth as the audience begins to see that Macbeth s perfect plan is falling apart. Shakespeare is using similes in the lines Macbeth is speaking just to emphasise the importance and the significance of the quotation In Act 4 Scene 1 there are three ghostly figures which appear to give Macbeth some words of advice, the first apparition tells Macbeth Beware Macduff, the second Be bloody, bold and resolute the third Macbeth shall never be vanquishd till Birnam wood comes to Dunsinane In reply to the three apparitions advice Macbeth says Macduff, what do I fear thee, Ill make assurance doubly sure This reply from Macbeth means that he will do anything to aid him to prevent Macduff from doing what he will, later on in the scene Macbeth says, The castle of Macduff I will surprise; soon upon Fife; give to edge of the sword his wife, his babes, and all unfortunate that should trace him in his line After Macbeth has made this statement all pity felt for him by the audience disappears as there is no need to bludgeon Macduffs family. In Act 5 the undoing of Macbeth is shown. In scene 1 there is a conversation between the gentlewoman and the doctor concerning Lady Macbeths well being, soon after, she enters and the audience see how ill she is. She relives the night of Duncans murder all over again and is trying to wash the blood off of her hands, there is really no blood on her hands but she is in an ill state of mind and therefore does not know, she continues to clean the blood off of her hands, but says that it wont come off and that she can still smell it, later in Act 5 Scene 5, Lady Macbeth dies in a state of mental pain and anguish, at this moment the most pity is evoked for Macbeth. This is one of the saddest moments in the play and Macbeth makes it worse by saying Out, out brief candle! Lifes but a walking shadow, a poor player that sweats and frets his hour upon stage, and then is heard no more. Macbeth is basically saying in this quote that life is pointless and that every species on the planet is one big actor and the world is just one big stage and that life is just one big play. Afterwards in Scene 6 a message is sent to Macbeth from a lookout that Birnam wood is coming to Dunsinane. Macbeth is shocked as he hears it and goes into a state of denial and calls the messenger a liar and warns him that he should tell the truth. Macbeth goes up to see for himself and sees what he wouldnt of believed; he immediately calls for his armour, his shield and his sword. Macduff soon arrives and he and Macbeth have a sword fight, Macduff, still with the anger of his familys slaughtering inside him, draws his sword and decapitates Macbeth. Macduff takes over as the King of Scotland and the play finishes. In conclusion it is without a doubt that Macbeth is a tragedy, and through its 5 acts and 26 scenes it evokes pity on separate occasions. The question was To what extent does Shakespeare create pity for Macbeth. Pity is created almost to the extent that the audience forgives Macbeth for his terrible actions but not entirely. If you take into account all the evidence gathered and make a conclusion you will see that the audience never did and never were supposed to forgive Macbeth.

Disneys Acquisition Of Pixar Media Essay

Disneys Acquisition Of Pixar Media Essay In January 2006, the US based media and entertainment company Walt Disney announced that it would acquire its animation partner Pixar for US$ 7.4 billion in stock. The deal was expected to be finalized by mid-2006. Disney had already been in partnership for producing and distributing animation films with Pixar since 1991. However, in January 2004, owing to differences with Disneys then CEO Michael Eisner, Pixar had announced that it would partner with another distribution company in 2006. But Robert Iger, who took over from Eisner on September 30, 2005, revived talks with Pixar and finally succeeded in acquiring it. Our project will examine the partnership agreement between Disney and Pixar and the incidents that led to the break-up of ties. We will discuss how the new CEO Robert Iger, who succeeded Michael Eisner, went on to re-establish ties with Pixar and Steve Jobs, who held 50.6% equity stake in Pixar. The questions we seek to answer through this case are: Is there a synergy between Disney and Pixar? Did Disney pay too much to acquire Pixar? Is the Pixar acquisition in the best interest of Disneys shareholders? Will the difference in corporate culture allow Disney and Pixar to work effectively together? Will this acquisition be successful? History The Disney Story Walt Disney Animation Studios is the subsidiary of The Walt Disney Company. It was founded in 1934 when Walt Disney initiated the production of Snow White and the Seven Dwarfs, which was Walt Disneys first feature length animation film. The move however started in 1937, when selected animators from the shorts division were moved into the features division. Snow White was an unprecedented success when it was released in February 1938. It moved critics and audiences alike and is considered one of the true animation classics of all times. After, the viability of feature length animation was firmly established with the success of Snow White, WDAS would go on to make a series of critically acclaimed and successful animated features like Dumbo, Cinderella. They would also expand into new segments like live action features, television and theme parks. Since its founders death in 1966, The Walt Disney Company had narrowly survived takeover attempts by corporate raiders. Its shareholders Sid Bass and Roy E. Disney brought on Michael Eisner and former Warner Brothers chief Frank Wells to replace Ron W. Miller in 1984 and turn the company around. During the second half of the 1980s and early 1990s, Disney revitalized. Beginning with The Little Mermaid (1989), its flagship animation studio enjoyed a series of commercial and critical successes that helped reinvigorate the American animation industry. Disney also broadened its adult offerings in film when then Disney Studio Chairman Jeffrey Katzenberg acquired Miramax Films in 1993. Disney acquired many other media sources, including ABC and ESPN. However, by this time, the competitive scenario changed again. Many new studios had risen up and were producing high quality animated features. Also there was significant tiredness and indifference from the audience who had had enough of Disneys storytelling and animation styles. The rise of new studios also increased demand for artists and stencillers, driving salaries up, causing the budgets of hand drawn animation features to inflate. The rise of Computer Generated Imagery (CGI) was also eating into Disneys market share. Starting from 2000 onwards, massive layoffs had reduced staff to 600. Also the Studio decided to focus on CGI animation for future releases instead of the traditional animation methods to compete with Pixar, Dreamworks and Blue Sky Studios. This led to the shutdown of the Paris Studio in 2003 and the conversion of the Orlando Studio into a theme park attraction in 2004. Michael Eisner Story In 1976, the Chairman of Paramount Pictures, recruited Michael Eisner from ABC and made him president and CEO of the movie studio. During his tenure at Paramount, the studio turned out such hit films as Saturday Night Fever, Grease, the Star Trek film franchise, and Beverly Hills Cop, and hit TV shows such as Happy Days, Laverne Shirley, Cheers and Family Ties. Diller, the Chairman of Paramount, left in 1984, and Eisner expected to assume Dillers position as studio chief. But he was passed over. Eisner then lobbied for the position of CEO of The Walt Disney Company. Michael Eisner took over as CEO of the Walt Disney Company in 1984 and turned it into a media giant whose interests included movies, sports franchises, theme parks and television networks. During the early part of the 1990s, Eisner and his partners set out to plan The Disney Decade which was to feature new parks around the world, existing park expansions, new films, and new media investments. While some of the proposals did follow through, most did not. These included the Euro Disney Resort (now Disneyland Paris), Disney-MGM Studios (now Disneys Hollywood Studios), Disneys California Adventure Park, Disney-MGM Studios Paris (eventually opened in 2002 as Walt Disney Studios Park), and various film projects Frank Wells, COO of Walt Disney. died in a helicopter crash in 1994. When Jeffery Katzenberg was passed over for Wells post, he resigned and formed Dreamworks SKG with partners Steven Spielberg and David Geffen. Dreamworks would go on to become one of the biggest and most successful movie studios of all time and a big competitor to Disneys animation features. Instead, Eisner appointed Michael Ovitz, one of the founders of the Creative Artists Agency, to be President, with minimal involvement from Disneys board of directors, which included many influential and respected members. Ovitz lasted only 14 months and left Disney in December 1996 via a no fault termination with a severance package of $38 million in cash and 3 million stock options worth roughly $100 million at the time of Ovitzs departure. The Ovitz episode left a bad taste in the mouth and people were very disappointed with Eisners high handedness and autocratic style of working. By 2003, Disneys fortunes had flagged and Roy E. Disney, the son of Disney co-founder Roy O. Disney and nephew of Walt Disney, resigned from his positions as Disney vice chairman and chairman of Walt Disney Feature Animation, accusing Eisner of micromanagement, flops with the ABC television network, timidity in the theme park business, turning the Walt Disney Company into a rapacious, soul-less company, and refusing to establish a clear succession plan, as well as a string of box-office movie flops starting in the year 2000. On March 3, 2004, at Disneys annual shareholders meeting, a surprising and unprecedented 43% of Disneys shareholders, predominantly rallied by former board members Roy Disney and Stanley Gold, withheld their proxies to re-elect Eisner to the board. This effectively ended Eisners stint at Disney. On March 13, 2005, Eisner announced that he would step down as CEO one year before his contract expired. Eisners replacement was his longtime assistant, Robert Iger. The Pixar Story Pixar started in 1979 as the Graphics Group, a part of the Computer Division of Lucasfilm.It is based in Emeryville, California. It was launched with the hiring of Dr. Ed Catmull from the New York Institute of Technology (NYIT), where he was in charge of the Computer Graphics Lab (CGL).. The team at Pixar under Dr. Catmull worked on creating Motion Doctor, which allowed traditional cel animators to use computer animation with minimal training. Initially, Pixar started off as a computer hardware company whose core product was the Pixar Image Computer, a system primarily sold to government agencies and the medical community. One of Pixar Image Computers biggest customers was Disney Studios. However, The Image Computer never sold well. In a bid to drive sales of the system, Pixar employee John Lasseter-who had long been creating short demonstration animations, such as Luxo Jr., to show off the devices capabilities-premiered his creations at SIGGRAPH, the computer graphics industrys largest convention, to great fanfare. This would begin Pixars journey into the world of animated feature films. Poor sales of Pixars computers threatened to bankrupt the company, And Lasseters animation department began producing computer-animated commercials for outside companies to bring in much needed revenue. Early successes included campaigns for Tropicana, Listerine, and LifeSavers. The team began working on film sequences produced by their parent, Lucasfilm or worked collectively with Industrial Light and Magic, ILM is another Lucasfilm company, on special effects. In 1986, Steve Jobs purchased Pixar from Lucas Films shortly after he left Apple Computer. Jobs paid $10 million as capital into the company. The newly independent company had 45 employees and was headed by Dr. Edwin Catmull, President, and Dr. Alvy Ray Smith, Executive Vice President and Director. Jobs served as Chairman and Chief Executive Officer of Pixar. Pixar has made 10 feature films beginning with Toy Story in 1995 and each one has achieved critical and commercial success. Pixar followed Toy Story with A Bugs Life in 1998, Toy Story 2 in 1999, Monsters, Inc. in 2001, Finding Nemo in 2003 (which is, to date, the most commercially successful Pixar film, grossing over $800 million worldwide), The Incredibles in 2004, Cars in 2006, Ratatouille in 2007, WALL-E in 2008, and Up in 2009 (the first Pixar film presented in Disney Digital 3-D). John Lasseter Story Lasseter was born in Hollywood, California. When he was in college., he heard of a new program at California Institute of the Arts and decided to leave his current college to follow his dream of becoming an animator.. Lasseter was taught by three members of Disneys Nine Old Men Eric Larson, Frank Thomas and Ollie Johnston. On graduation in 1978 , Lasseter joined The Walt Disney Company, as a Jungle Cruise skipper at Disneyland in Anaheim. He later obtained a job as an animator at Walt Disney Feature Animation, Since the release of 101 Dalmatians in 1961, Lasseter felt WDFA had hit its creative peak and there was no innovation coming through in either the animation or the storytelling. In 1980 or 1981 he came across some video tapes from one of the then new computer-graphics conferences, and he experienced as a revelation.He saw the huge potential of this new technology in revitalizing the creative juices at WDFA. Lasseter realized that computers could be used to make movies with three dimensional backgrounds where traditionally animated characters could interact to add a new, visually stunning depth that had not been conceived before. During this time, Lasseter tried to sell his ideas to Disneys top bosses and he got the approval to do a short test film on the famous story Where the Wild things are. However,he unknowingly stepped on some of their direct superiors toes by circumventing them in their enthusiasm to get the project into motion. One of them, the animation administrator Ed Hansen disliked it so much that when Lasseter and Wilhite tried to sell the idea to him and Ron Miller, which they at that time were already aware of, they turned it down. A few minutes after the meeting, Lasseter was summoned by Hansen to his office, where John was told that his employment in the Walt Disney Studios had been terminated. While putting together a crew for the planned feature for Disney, he had made some contacts in the computer industry, among them Alvy Ray Smith and Ed Catmull at Lucasfilm Computer Graphics Group. After being fired, Lasseter visited a computer graphics conference at the Queen Mary in Long Beach, where he met and talked to Catmull again. Before the day was over, Lasseter had made a deal to work as an interface designer with Catmull and his colleagues on a project that resulted in their first computer animated short: The Adventures of Andrà © and Wally B. Lasseter oversaw all of Pixars films and associated projects as executive producer. He also personally directed Toy Story, A Bugs Life, Toy Story 2, and Cars. Lasseter has won two Academy Awards, for Animated Short Film (Tin Toy), as well as a Special Achievement Award (Toy Story). He was also nominated on four other occasions in the category of Animated Feature, for both Cars (2006) and Monsters, Inc. (2001), in the Original Screenplay category for Toy Story (1995) and in the Animated Short category for Luxo, Jr. (1986), while the short Knick Knack (1989) was selected by Director Terry Gilliam as one of the ten best animated films of all time. Corporate Culture at Pixar At most studios, a specialized development department generated new movie ideas. Pixar assembles cross-company teams for this purpose. Teams comprise directors, writers, artists and storyboard people who originate and refine ideas until they have the potential to become great films. Pixar believes in finding people who will work effectively together and ensures a healthy social dynamics in the team and this, they believe helps the team solve problems. Another important tenet in Pixar is the creation of a peer culture, where employees encourage people throughout the company to help each other produce their best work. At Pixar, daily animation work is shown in an incomplete state to the whole crew. This process helps people get over any embarrassment about sharing unfinished work, so they become even more creative. It enables creative leads to communicate important points to the entire crew at once. And sometimes a innovative piece of animation sparks others to raise their game. At Pixar, the belief is that, the most efficient way to resolve the numerous problems that arise in any complex project is to trust people to address difficulties directly, without having to get permission. So, everyone is given permission to communicate to anyone. Within Pixar, members of any department can approach anyone in another department to solve problems without having to go through proper channels. Managers understand they dont always have to be the first to know about something going on in their realm, and that its okay to walk into a meeting and be surprised. Special attention is given to craft a learning environment, this reinforces the mindset that everyone is learning and that its fun to learn together. Pixar University trains people in multiple skills as they advance in their careers. It also offers optional courses (screenplay writing, drawing, sculpting) so people from different disciplines can interact and appreciate what each other does. While many people dislike Post-Mortems of projects as they would rather discuss what went right than what went wrong and after investing extensive time on a project, theyd like to move on. So post-mortems at Pixar are structured to stimulate discussion. Pixar asks post mortem participants to list the top five things theyd do again and the top five things they wouldnt do. The positive-negative balance makes it a safer environment to explore every aspect of the project. Participants also bring in lots of performance data including metrics such as how often something had to be reworked. Data further stimulates discussions and challenges assumptions based on subjective impressions. Corporate Culture at Disney Under autocratic former CEO Michael Eisner, control rather than collaboration was the norm and unit heads became afraid or unable to make decisions. With Disney vying for a share of digital market, the timing of the upheaval could hardly have been worse. Fortunately, new chief executive Bob Iger is a completely different animal to Eisner and immediately set out to restore harmony. Achieving this involved transforming the culture rules almost beyond recognition. Unlike his predecessor, Iger: Rules by consensus Shows faith in his subordinates And is willing to keep a low profile and let others take the plaudits. No longer shackled by central control, key players in the organization now enjoy greater freedom to call the shots. And while Eisner overtly pooh-poohed any ideas he did not like, Iger values and encourages the contributions of others. Consequently, during weekly meetings the dialogue no longer flows just one way. The CEO visits rank and file to show them that their efforts are appreciated and has made his office a more welcoming place. This might seems as trivial gestures to some but the effect on morale can be priceless. But perhaps Igers most significant attribute is the trust he places in his people to get the job done. In contrast, Eisner cramped the style of others by insisting on being involved in anything and everything. In time, Disney gained a reputation of being slow to react. But Iger tells his people to go for it and will only get involved when it is absolutely necessary. Igers back seat style of leadership has allowed scriptwriters more freedom and the studio chief greater decision making power. Disney and Pixar: The Partnership During the 90s there was an explosive growth in the use of CGI in animation and live action feature films. Soon CGI animation came to dominate special effects in both kinds of features. The barrier between animation and special effects were shattered and the enhancement of Hollywood films using CGI became second nature and often went unnoticed. In 1991, due to losses suffered from their computer hardware business, there was serious financial strife at Pixar. This resulted in substantial layoffs in their computer department. Pixar made a $26 million deal with Disney to produce three computer-animated feature films, the first of which was Toy Story. Despite this, the company was losing money and Steve Jobs was thinking about divesting his shares in Pixar. Only after confirming that Disney would distribute Toy Story for the 1995 holiday season did he decide to give it another chance. The film went on to gross more than $350 million worldwide. Disagreements started to crop up between Disney and Pixar from their next project together, Toy Story 2. Originally intended as a straight-to-video release (and thus not part of Pixars three-picture deal), the film was eventually upgraded to a theatrical release during production. Disney refused to consider this feature film as part of the three picture deal as demanded by Pixar. Pixars first five feature films have collectively grossed more than $2.5 billion, equivalent to the highest per-film average gross in the industry. Though profitable for both, Pixar later complained that the arrangement was not equitable. While Pixar was created and produced, and Disney only handled marketing and distribution, Profits and production costs were being split 50-50, and not only that, Disney exclusively owned all story and sequel rights and also collected a distribution fee. The lack of story and sequel rights was perhaps the most onerous aspect to Pixar and set the stage for a contentious relat ionship. The two companies attempted to reach a new agreement in early 2004. The new deal would be only for distribution, as Pixar intended to control production and own the resulting film properties themselves. The company also wanted to finance their films on their own and collect 100 percent of the profits, paying Disney only the 10 to 15 percent distribution fee. More importantly, as part of any distribution agreement with Disney, Pixar demanded control over films already in production under their old agreement, including The Incredibles and Cars. Disney considered these conditions unacceptable, but Pixar would not concede. Disagreements between Steve Jobs and then Disney Chairman and CEO Michael Eisner made the negotiations more difficult than they otherwise might have been. They broke down completely in mid-2004, with Jobs declaring that Pixar was actively seeking partners other than Disney. Pixar did not enter negotiations with other distributors. After a lengthy hiatus, negotiations between the two companies resumed following the departure of Eisner from Disney in September 2005. In preparation for potential fallout between Pixar and Disney, Jobs announced in late 2004 that Pixar would no longer release movies at the Disney-dictated November time frame, but during the more lucrative early summer months. This would also allow Pixar to release DVDs for their major releases during the Christmas shopping season. An added benefit of delaying Cars was to extend the time frame remaining on the Pixar-Disney contract to see how things would play out between the two companies. Acquisition by Disney Disney announced on January 24, 2006 that it had agreed to buy Pixar for approximately $7.4 billion in an all-stock deal. Following Pixar shareholder approval, the acquisition was completed May 5, 2006. The transaction catapulted Steve Jobs, who was the majority shareholder of Pixar with 50.1%, to Disneys largest individual shareholder with 7% and a new seat on its board of directors. Jobs new Disney holdings exceed holdings belonging to ex-CEO Michael Eisner, the previous top shareholder, who still held 1.7%; and Disney Director Emeritus Roy E. Disney, who held almost 1% of the corporations shares. As part of the deal, Pixar co-founder John Lasseter, by then Executive Vice President, became Chief Creative Officer (reporting to President and CEO Robert Iger and consulting with Disney Director Roy Disney) of both Pixar and the Walt Disney Animation Studios, as well as the Principal Creative Adviser at Walt Disney Imagineering, which designs and builds the companys theme parks. Catmull retained his position as President of Pixar, while also becoming President of Walt Disney Animation Studios, reporting to Bob Iger and Dick Cook, chairman of Walt Disney Studio Entertainment. Steve Jobs position as Pixars Chairman and Chief Executive Officer was also removed, and instead he took a place on the Disney board of directors. Lasseter and Catmulls oversight of both the Disney and Pixar studios did not mean that the two studios were merging, however. In fact, additional conditions were laid out as part of the deal to ensure that Pixar remained a separate entity, a concern that analysts had had about the Disney deal.Some of those conditions were that Pixar HR policies would remain intact, including the lack of employment contracts. Also, the Pixar name was guaranteed to continue, and the studio would remain in its current Emeryville, California location with the Pixar sign. Finally, branding of films made post-merger would be Disneyà ¢Ã¢â€š ¬Ã‚ ¢Pixar (beginning with Cars). EXHIBITS Name of Feature Film Studio Total Gross 1 The Lion King(1994) Disney $783,841,776 2 Finding Nemo(2004) Disney/Pixar $864,625,978 3 Shrek(2001) Dreamworks $484,409,218 4 Monsters Inc(2001) Disney/Pixar $525,366,597 5 Toy Story 2(1999) Disney/Pixar $485,752,179 6 Aladdin(1992) Disney $504,050,219 7 Snow White(1937) Disney $184,925,486 8 Ice Age(2002) 20th Century Fox $383,257,136 9 Incredibles(2004) Pixar $631,442,092 10 The Little Mermaid(1989) Disney $183,355,863 Exhibit 1 : Top Grossing Animated Feature Films Exhibit 2 Disney Stock Price from Aug 06 to Jun 07 We start off our analysis using Porters Five Forces of Competition to understand Disneys situation in the industry and the rationale behind its actions. Threat of New Entrants Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitutes Rivalry among competing firms Threat of new entrants: CGI animation movie industry is a robust industry which is urdergoing a period of phenomenal growth. This is an attractive segment for movie studios to venture into as revenues from live action movies are falling while their budget rises ever higher. CGI animation movies are an interesting option for many movie studio to increase their toplines without hurting their bottomlines. In this regard, we have seen many established movie studios partner with independent animation studios from within and outside the United States in creating CGI animation movies. While, these movies have not been able to garner the critical or commercial acclaim of that of Pixar, the quality and quantity of such outsourced CGI animation movies are increasing YoY and represent a significant threat to the market pull of existing players in the segment. So we would rate the threat of new entrants as high. Bargaining Power of Suppliers: Resources needed for making CGI animation are the technology behind the animation, the story and the animators. Pixar has been a pioneer in creating the technology for animation and with its acquisition, Disney has backward integrated with its supplier, hence reducing the uncertainty in its environment. Both Disney and Pixar have a large team of dedicated scriptwriters and animators, all of whom work under short or long term employment contracts, the loss of a few of the talent will not reduce the quality of the output of either Studios. However, scriptwriters in US are unionized and have in the past gone on strike against major studios to renegotiate revenue sharing agreements from movie revenue. The strike cost studios hundreds of millions of dollars in lost opportunities, movie shooting delays and cost overruns. So the employees cannot be taken for granted and Disney will have to strike a fine balancing act to please both it employees and shareholder s if it wants to get the best work of the employees. We would rate the bargaining power of suppliers as medium. Bargaining Power of Buyers: While in the past, almost the entire revenue receipts from movies came from the theatergoing public within the US, due to the effects of globalization and technology diffusion, the receipts can now be classified on basis of geography and the mode of delivery of content. Worldwide movie market outside United States have become big movie spinners for Hollywood movies, sometimes receipts from offshore markets exceed that of the US market. The important markets outside of US for Hollywood movies are: Japan United Kingdom China Europe Studios sells distribution rights of their movie to other studios, who are often better placed to reach out to these markets. Since Disney and Pixar have a large brand following and pull, they are better placed that most other studios to negotiate for more favourable distribution contracts. Since all movies made by Pixar till now have been movie spinners for everyone associated with it, Disney has considerable clout in negotiating for contracts. The mode of delivery of movie content can be classified into: Theatrical Release DVD Release Internet Release Satellite TV Release Other than a theatrical release, the release of DVDs and the Satellite TV rights of the movie are a significant revenue stream. The reasons stated earlier regarding Disney and Pixars unique brand placement help them negotiate the best contracts in both types of releases. Internet release is a new phenomenon and is not a significant enough part of the revenue to affect the dynamics. Overall, we would rate the bargaining power of buyers to be low. Threat of Substitute Products: A big threat facing movie studios in general is movie piracy. Piracy is causing a meltdown in both movie and the music industry causing many studios to fail and others to change their business model. Piracy initially started off with CDs and DVDs, but with the advent and diffusion of broadband internet, online piracy is on the rise. Piracy since the 80s has been the biggest threat to the survival of movie studios as they lose billions of dollars worth of revenue receipts because of it. Since CGI movies appeal to all demographics, live action as well as traditional animated movies can be thought of as substitute products. However, historical data suggests that there is considerable cross selling between these genres and it is unlikely that somebodys interest in a different genre is going to prevent him from watching CGI movies. Overall, We would rate the threat of substitute products as medium. Intensity of Competition among existing players: The existing players in the segment are very aggressive and spend a lot on advertising and media to promote their movies. Further consolidation within the industry looks unlikely in the short term future as most studios in the segment have backers with deep pockets. Looking into the future as the frequency of CGI movie releases by major studios increases, the intensity of competition and one upmanship between studios will rise inflating budgets and reducing margins. So, we would rate the intensity of competition between existing players as high. We will summarize the competitive scenario in this grid. Threat of New Entrants High Bargaining Power of Suppliers Medium Bargaining Power of Buyers Low Threat of Substitutes Medium Rivalry among competing firms High As you can see, Disney is functioning within a dynamic environment with a fairly high degree of uncertainty. We have tried to analyze the reasons behind Disneys acquisition by breaking down the reasons of why companies go for MA. Given below is a pictorial representation of the same, Reason 1: To Increase Market Power When a firms size, resources and capabilities increase, it increases its ability to compete. With the acquisition of Pixar, Disney gains access to Pixars pool of talented artists and creative and technical teams. These artists and content developers are big assets in this industry as good talent is hard to find and harder to replace. With the increase in resources, Disney Pixar combine can create more movies per year potentially resulting in a significant value addition to Disney. Reason 2: Horizontal Acquisition Companies go in for acquisitions of firms competing in the same marketspace for obtaining: Cost Based Synergies Revenue Based Synergies This is an obvious case of the latter. Pixars last six movies have reportedly earned more than $ 2.5/3.2 billion in total whereas Disneys last movie Chicken Little was only a moderate success. Disney plans to exploit Pixars creative and technical teams in combination with its well established and huge distribution system to increase its revenue. Disney in recent years have been unable to connect with its audience and hence create movies that have become blockbusters to the tune of Pixars movies. This acquisition will help Disney leverage Pixars content generation expertise with Disneys distribution expertise, helping them realize the maximum amount of revenue from both the domains. Reason 3: Cost of New-Product Development and Increased Speed to Market Internal development of a new product, CGI movies, in this case is risky. From Pixars point of view, they were an independent studio without the monetary muscle of a media giant like Disney, this would mean that Pixar is likely to be conservative with the b