Barilla Spa A Essay Example for Free

Barilla Spa A Essay Barilla SpA, an Italian pasta manufacturer is experiencing problems in manufacturing and distribution systems caused by fluctuations in demand. To eliminate these difficulties Giorgio Maggiali, the Chief of Barilla’s Logistics Department, has been trying to implement the Just-In-Time-Distribution, further referred as JITD, system proposed by his predecessor Brando Vitali. JITD can be called a remake of popular â€Å"Just-In-Time† manufacturing concept. Although Maggiali has been trying to convince his consumers that the JITD would definitely work, he has not made much progress. The program was met with significant resistance by the distributors and Barilla’s own Sales and Marketing organizations. Now Maggiali is looking for possible solutions of the problem. In the following analysis we will provide recommendations, which will help Barilla to successfully implement the JITD system and thus decrease its costs, increase efficiencies and its profits. Introduction Barilla SpA was founded in 1975 by Pietro Barilla. From a small shop in Palma, Italy, it became a large, vertically integrated corporation with mills, plants and factories located throughout the Italy. Barilla’s success highly depended on its’ quality of product and innovative marketing programs, which created strong brand name. The company was sold to Grace Inc. in 1971, because the building of a huge plant in Perdignano drove the owners â€Å"deeply into debt†. Grace brought additional capital investment and professional manag Barilla SpA Case Study The biggest challenge facing Giorgio Maggiali and Barilla SpA is the mounting burden that fluctuations of demand have placed on Barillas’ manufacturing and distribution methods, and whether or not to implement a Just-in-Time Distribution (JITD) system for their distributers. The implementation of Just in Time Distribution would allow for a more efficient process for getting the products to the end user when and where they are needed. Solution #1: To implement Just in Time Distribution. For this to succeed, Mr. Maggiali as the director of logistics for Barilla will need to be personally and intimately involved and partner with Mr. DiMaria who is in charge of sales for Barilla and to obtain the support from their own sales reps. Barilla will need to pull the sales reps in for training on how implementing JITD would benefit their accounts, Barilla SpA and themselves. The sales reps will need to â€Å"sell† their customers on this idea and to shift the mentality of their distributers away from â€Å"this is the way we have always done it† and for them to be amiable to exploring new and more efficient ways to replenish their stock. Pro: Barilla would more easily be able to control their manufacturing process and greatly reduce production overruns and stock outs thus enable to pass cost savings onto their distributors. Con: Resistance from the distributors to change may continue. Their distributer may ask â€Å"why is that a concern of mine? † I just want the product I want when I want it. Con: Will incur costs to purchase or develop software needed to gather and correlate sales information. Pro: The initial cost for software development will be offset by savings in lost sales opportunity, reductions in buybacks and an overall increase in productivity and sales. Barilla already has much of the needed data pertaining to sales to the distributers. Con: Customers may be resistant to providing their sales and customer base data to Barilla. Pro: Barilla Sp Company Overview Barilla Spa is a large vertically integrated family owned largest pasta producer in Italy. Its operations are divided into seven divisions: three Pasta divisions, the bakery products division, the Fresh Bread division, the Catering division and the International division. Barilla products were sold through three types of retail outlet: small independent grocers, supermarket chains, and independent supermarkets. Products were sold through CDCs and through intermediate distribution channels. Fresh products were sold through a network of brokers. Inventory levels in the supply were high with larger levels of stock held for dry pasta since its shelf life was high as compared to wet pasta. Barilla enjoyed a strong brand image in Italy. Its marketing and sales strategy was based upon a combination of advertising and promotions. Also distributors can buy as much product as they want to for meeting their demand at the discount offered by the company. Barilla produced two major kinds of products:- a) Dry Products- These include dry pasta, cookies, biscuits, flour, bread sticks and dry toasts. These make 75% of the Barilla sales. They had long shelf lives of 18-24 months or medium shelf lives of 10-12 weeks depending on the product type. b) Fresh products- These include fresh pasta products with 21 day shelf life and bread with 1 day shelf life. Issues Faced The company was suffering from the following problems: 1. Variability in demand- This lead to operational inefficiencies on the part of the company. 2. Inventory Management- The company produced over 800 SKUs, most of which had long or medium shelf lives, thus could be easily stored up at the company warehouse or with the distributors. During periods of low demand, high inventory holding costs had to be incurred. 3. Stock outs- This was one of the major problems which Barilla faced. Many of the distributors were not able to cater to the demands of the retailers during times of high demand. This time B Thoughts on Supply Chain Management The JITD program was supposed to tackle the uneven distribution workload Barilla encountered with its distributors. In order to achieve this, better demand forecast was needed with the support of the distributors. Benefits of the program are below. Barilla’s own logistics organization would be allowed to specify the appropriate delivery quantities that would more effectively meet the end consumer’s needs It would also allow Barilla to distribute the workload on manufacturing and logistics systems more evenly Drawbacks of the program are below. Higher investment costs such as training Since JITD is a new concept, and has not tried out before, there is a risk that serious errors may occur during the implementation process, and this would ruin all previous efforts The value chain consists of five major components, and it can be represented as SIPOC, where S is Supplier, I Input, P Production, O Output and C Customer. Between C and P, there are also the distributors, wholesalers and retailers. It is almost impossible to develop an accurate sales forecast because the market is constantly changing. Factors affecting the market situation are also changing. Without an accurate sales forecast, it is difficult to achieve JIT. This is basically a paradox. No enterprise is able to develop an accurate sales forecast, and without an accurate sales forecast, it is not possible to achieve JIT. Is there really no way out? How about Dell? Dell basically builds computers on a BTO (build-to-order) basis, and this makes JIT possible. But how many enterprises can really deliver products on a BTO basis? What are the requirements to produce on a BTO basis? Barilla definitely was not one of them. Communication here is the critical success factor. The supplier, in this case, Barilla, has to collect information from the distributor, and the distributor has to be able to collect information from the wholesaler, and then the wholesaler has to d

Jungle Book :: essays research papers

Part 1: Identifying 1.) Protagonists- In a story or movie the Protagonist(s) is/are the main character(s). In the story A separate Peace the protagonist is Phineas(Finny). 2.) Antagonists- In a story or movie the Antagonist(s) is/are the character or force in conflict with a main character, or Protagonist(s). In the story A Separate Peace the Antagonist is Gene. 3.) Setting- In a story or movie the Setting is the time & place of the action. In the story A Separate Peace the setting is at the Devon School. 4.) Mood- In a story or movie the Mood is the feeling created n the passage. In the story A Separate Peace the mood is sad because jealousy ruined Gene & Finny’s friendship. 5.) Conflicts- In a story or movie the Conflict is a struggle between opposing forces. There are two types of Conflicts: Internal & External. An Internal Conflict involves a character in conflict with himself or herself. In the story A Separate Peace the Internal Conflict is Gene vs. himself. In an external conflict, the main character struggles against an outside force. In the story A Separate Peace the External Conflict Gene vs. Finny. 6.) Suspense- In a story or movie the Suspense is the feeling of curiosity or uncertainty about the outcome of events. In the story A Separate Peace the Suspense is when Gene shakes the tree limb & Finny falls & shatters the bone in his leg. Part 2: Elements of plot   Ã‚  Ã‚  Ã‚  Ã‚  1.) Exposition- In a story or movie the exposition is the background information, which sets the scene for the conflict. In the story A Separate Peace the exposition is the following: At the beginning of the story Gene has been out of school for fifteen years & has decided to come back & visit. While visiting he saw the tree that Finny & he had jumped from into the Devon so many years a go, which brought back a lot of memories. He then remembers the Super Suicide Society of the Summer Session. That was the club that Finny came up with.   Ã‚  Ã‚  Ã‚  Ã‚  To be in the club you had to jump off a high tree limb & into the Devon. Since Finny was a daredevil, he decided to go first. Gene was an intellectual & was afraid to jump, but he jumped anyway. They were then late for supper, which had been noted by Mr. Prud’homme.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  The next morning Mr.

Raynair Business Model Essay

This year, Air Scoop is publishing an updated report on Ryanair’s Business Model, with a new task in mind. Starting from what was built last year, the 2011 Ryanair report has been conceived with a double objective in mind: to provide readers with a brief, compelling, synthesis of Ryanair’s business model and highlight new elements and evolutions in Ryanair’s skies. In no way is that report intended as a replacement of the one published last year, rather as a complement that should provide anyone interested in the European low-cost industry with a wealth of information on the market’s most important company. Conceptually, the 2011 report was elaborated along two different axis of analysis. In a first part, the report starts by taking a look at Ryanair’s revenues and expenses. According to the company itself, if Ryanair has grown so fast, it is thanks to an efficient mix of ever increasing sources of income and ever wider cost-cutting measures in all services. For this reason, the 2011 report looks, item by item, at Ryanair’s cost-cutting, profit-maximising strategies. From the most discussed to the lesser known tactics, the goal is to show how Ryanair has managed and still manages to constantly extract increasing income from its passengers while maintaining rock-bottom prices, through a relatively complex fare system and a slew of ancillary services. The report also investigates Ryanair’s largely misunderstood relationship with its own assets and how the airline managed to practically neutralise costs usually associated with aircraft and human resources, even turning airports into direct sources of revenues. The second part of the report is dedicated to a more analytical approach of the airline’s structure, providing the reader with an analysis of what Air Scoop judges to be the three main strengths of the airline. Namely, Ryanair’s legal strategy, whose dominant feature is an extremely proactive stance towards anything even remotely menacing to the airline, deterring irate customers from engaging legal action and submerging European regulators with complaints. Second, and perhaps most important, is Ryanair’s financial structure itself, through which the airline has optimised every part of its business, taking advantage of varying legal and fiscal frameworks all around Europe. Third is the most visible, but also possibly the least understood, part of Ryanair’s package for success, its communication. The airline, mainly through its hyper-charismatic CEO, Michael O’Leary, has managed to be present in every form of media outlet almost daily. Whether it be in good or bad terms, Ryanair is being talked about, and gets into customers’ minds and on every newstand in Europe. The traditional pricing system means that â€Å"fundamentally, each flight must be paid for by exactly one fare, but a single fare may pay for more than one flight. Multiple fares may be combined to pay for all the flights in a journey. The airline industry uses the term fare component (FC) to refer to a fare and the flights it pays for (covers)†1. Fare components can be combined in six different geometric figures (ranging from direct trip to elaborate circle trip), any combination of one to four fare components qualifies as a â€Å"Priceable Unit† (PU). A ticket can be built from any number of priceable units to form a coherent sellable trip. Some more restrictions may apply such as rules indicating that there â€Å"must be a Saturday night between departure of first flight in first fare component of priceable unit and departure of first flight and last fare component†2. This results in an incredibly complex faring system in the traditional airline industry and low transparency for customers. Many low-cost carriers use a different pricing system. Because companies such as Ryanair rely on a point-to-point rather than a hub-and-spoke system, they cannot offer similarly connected flights. Ryanair has decided to turn this into an advantage and offer simply-priced â€Å"point A to point B† tickets, avoiding the hassle of elaborating complex ticket structures and allowing the company to deny any responsibility in a missed connection while having the opportunity to intensively utilise aircraft and crews.

Essay about I Am An American - 1673 Words

Since the 1800s, immigration has been considered a problem that is out of control in the United States. Government officials have claimed that the issue of birthright citizenship is the core of the dispute over immigration. To try and remedy this situation, holders of public office have held hearings and debates in an attempt to â€Å"redefine† what it means to be an American citizen. Birthright citizenship is the term used to refer to the citizenship that is granted to an individual who is born on the associated territory. Providing an individual with citizenship of any state or country means that one now has the rights, privileges and duties of a citizen in the related region. In the United States, birthright citizenship is a highly†¦show more content†¦This text implies that any individual, no matter their original location, is subject to the privileges of an American citizen. Some argue that the language of the Fourteenth Amendment has been misinterpreted and abus ed as time has passed. The backbone for this argument? — â€Å"Subject to the jurisdiction thereof.† In the Fourteenth Amendment, this phrase holds the key to why birthright citizenship can be deemed unconstitutional. Government officials say that these key words were put in the constitution to specifically to exclude Native Americans born on reservations and any other foreign national. In 1884, the case of Elk vs. Wilkins was brought to the attention of the U.S. Supreme Court. In this case an Indian named John Elk, who was born on a reservation within the U.S. border, was denied the right to vote by Charles Wilkins even though he had moved to a non-reservation territory and separated himself from his tribe. Elk argued that he deserved the right to vote as a U.S. citizen because based on the Fourteenth Amendment he was granted automatic citizenship for being born in the United States. The U.S. Supreme Court came to the conclusion that Elk was not considered an American citizen just because he was within U.S. jurisdiction. It was stated that in order to be considered a citizen of the United States, you cannot oweShow MoreRelated I am Arabic, I am an American! Essay620 Words   |  3 Pagesmy own thoughts and ideas about the terrorist acts against my country, the United States of America, I have decided that there is no right or wrong way to handle the situation. The fact is, something just has to be done. I have studied our involvement in World War II, but the attack on the World Trade Center has really affected me. I grew up with the idea that although German- and Japanese-American citizens are innocent, many of us still have stereotypes about them. Why? What is so hard for us toRead MoreI Am An Italian American Essay1651 Words   |  7 Pages I am an Italian-American, female college student who comes from a middle-class background. 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Sometime between 1620, when the Plymouth Colony came to be and the outbreak of the first wars with the Native American inhabitants, is frequently understoodRead MoreI Am A Third Generation American1020 Words   |  5 Pages1984, I am a third generation American. My grandfather was born in Mexico and my father was born in New Mexico, while I was born at Fort Lewis Washington, I am a Soldiers Son. While growing up my father was stationed at various bases throughout the United States and I was â€Å"lucky† enough to tag along. From an early age I was always told to do better and more than those who came before me by my mother. From the age of two till I was five I lived in Fort Bragg, North Carolina. This is where I gained

Temperament - 721 Words

Temperament: behavioral styles that are fairly stable across situations and are biologically based Infant Temperament Thomas and Chess: Stella Chess and Alexander Thomas conducted pioneering longitudinal research on infant temperament. 3 patterns (based on parents reports) * easy babies (40%) adjust readily to new experiences, quickly established routines, and generally were cheerful in mood and easy to calm * difficult babies (10%) adjust to new experiences, likely to reac negatively and intensely to stimuli and events, and irregular in their bodily functions * slow-to-warm-up (15%) somewhat difficult at first but easier over time ***other infants don’t fit into these categories*** * Temperament is moderately†¦show more content†¦The infant also displays stranger anxiety and uses the caregiver as a secure base for exploration. * Avoidant attachment * Insecure attachment in which the infant shows little separation anxiety and does not pay much attention to the caregiver’s return. * Ambivalent (resistant) attachment: * Insecure attachment in which the infant shows separation protest but also distress upon the caregiver’s return. * Disorganized/disoriented attachment: * Infant-caregiver relations characterized by the infant’s fear of the caregiver, confused facial expressions, and a combination of avoidant and ambivalent attachmentShow MoreRelatedTemperament Style7042 Words   |  29 PagesThe Keirsey Temperament Sorter ® II Classic Temperament Report Report prepared for: CFM 3046 Tuesday, August 07, 2012 Keirsey Temperament Sorter-II Classic Temperament Report Copyright  © 2000-2010 Keirsey.com. All rights reserved. This report is based on Please Understand Me II by David W. Keirsey, PhD Copyright  © 1998 Prometheus Nemesis Book Company The Keirsey Temperament Sorter II Copyright 1998 Prometheus Nemesis Book Company. Keirsey Temperament Sorter, Guardian, Artisan, Idealist, andRead MoreThe Keirsey Temperament Sorter II1190 Words   |  5 PagesThe Keirsey Temperament Sorter-II is an instrument to determine an individual’s personality traits. Each of us has different personalities. Those personalities that we acquired through our parents, guardians or that we learned ourselves. To understand another individual, we have to understand ourselves first. The Keirsey Temperament Sorter-II provides a better understanding for each temperament or characteristic of a person and how an individual interacts with other personality types. 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Among the many biological factors that may be conducive to the origins of EBD is brain damage, brain dysfunction, malnutrition, allergies, or temperament. The second question of biological causes for EBD asks, what can be concluded about brain damage or dysfunction and EBD? The answer to this question lies in understanding the functions of the brain. An array of EBDs has been attributed to known

The Mexican War - 848 Words

The Mexican War is frequently viewed as one of the United States greatest contentious wars. The war was fought between 1846 and 1848. Was Manifest Destiny the motivating reason or could it have been something else? The awareness of Manifest Destiny was starting to expend the thoughts of countless Democratic Americans. They wanted for the United States to increase their land to have continental power. It was understood that additional territory would entail the spread of economic achievement. There is a well-defined period of incidents that steered to the outbreak of the war, but there is one key incident, and one inferior act, which openly brought about the declarations of war on both sides of the tension among Mexico and the United States. Most researchers concur that the invasion of the Republic of Texas by the United States in 1845 sets the point for conflicts, but was not essentially the trigger that stirred the hostility among the two countries. There was backing of the war on b oth sides of the hostility, which inclines to cloud the view of one nation being the antagonist over the other. The beginnings of the Mexican-American war can apparently be instantly located back to the westward movement of American settlers and the invasion of Texas in 1936. The Mexican-American war was a disagreement that was brought on by a mixture of groups in the United States. The motives of why these individuals wanted war are exhibited after the outcome of the war. This outcome was aShow MoreRelated The Mexican War Essay711 Words   |  3 PagesThe Mexican War   Ã‚  Ã‚  Ã‚  Ã‚  The factors that started the Mexican War lay heavily on American shoulders. Whether if the factors were created by social, political or economical needs, they have all become the center of attention for the question of being a national interest or disgrace. However, the Americans felt that they existed for â€Å"†¦spreading the blessings of peace.† according to Andrew Jackson. There will always be controversy between the two sides of this matter, the Americans who feel that itRead MoreMexican War of Independence3064 Words   |  13 Pages* * * * * * * * * * * The Mexican Wars for Independence: Failed Ambitions * Pablo A. L. Briger * * * * * US and Modern World I * Mr. Segiel * February 15, 2013 * * * September 16 is a day of celebration all through Mexico. Even the president emerges from the royal palace, decorated with a sash to represent Mexico, rings a bell three times just as Miguel Hidalgo did on that same day in 1810 to commemorateRead MoreThe Mexican American War Essay1223 Words   |  5 PagesUnited States of America has been through many wars, wars concerning many things such as land oil, pride and respect. However, when the United States went to war with Mexico, it was planned over greed. The Mexican- American war was a war provoked by the United States, in efforts to expand the coasts of the country. Mexico was a small under privileged country who had previously to the war had already lost part of their country (Texas). Needless to say this war was cut throat and violent, it was howeverRead MoreMexican Drug War : Mexico1306 Words   |  6 PagesBlomme Honors 1 28 September 2014 Mexico Drug War According to the FBI, there are more than seventy five open cases of Americans that are kidnapped in Mexico. That is just one of the effects caused by what is called The Mexico Drug War. People are oblivious to what the outcome of drugs, in general, can do. Many have disappeared or been killed, firearm trade from the U.S. has gone up, and the supply of drugs in the U.S has increased. The Mexico Drug war started in December of 2006 and is still lingeringRead MoreThe Mexican-American War Essay870 Words   |  4 Pagesdisregard for the toll a war can take on human lives. 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The Mexican-American War started mainly because of the annexation of the Republic of Texas (established in 1836 after breaking away from Mexico). The United StatesRead MoreThe Mexican Drug War and Its Consequences1185 Words   |  5 PagesThe Mexican Drug War and Its Consequences Despite President Felipe Calderon’s good intentions and determination to eliminate the drug cartels in Mexico, the Mexican government has not been able to stop the drug cartel’s operations (smuggling drugs, people and weapons to and from the USA) for many reasons. The drug cartels have proven to be powerful, well connected politically, well trained, well- armed, and manipulation of the masses. Therefore, it has been impossible for the MexicanRead MoreThe American Army in the Mexican War1085 Words   |  5 Pagesrepel invasions. This two level arrangement formed the basis of military establishment during the war. The U.S. army was not prepared for the war. The congress authorized 8613 men and officers for the war but, the actual number was fewer than 5500. Many regimental commanders entered before the War of 1812 but, were too elderly and infirm for an active duty. Looking at the poor state of army during the war, the Congress increased the number of private individual companies to hundred. This turned outRead MoreEssay The Mexican-American War1216 Words   |  5 PagesThe Mexican-American War. The Mexican-American war was a process of years of battles between the Mexicans and Americans but I think after this informational paper, you’ll seem to know a little bit more knowledge about it. How it all started, well in the beginning, the Americans and Mexicans both wanted to control Texas, but at the time it was a part of the Mexican territory, well soon enough Americans wanted control over it so badly that they started to travel into Texas’s land. Part of the reasonRead MoreMexican-American Drug War1105 Words   |  5 PagesThe Mexican drug-trafficking cartels are said to have been established in the 1980s by a man named Miguel Angel Felix Gallardo, also known as â€Å"The Godfather†. With the help of Ernesto Fonseca Carrillo and Rafael Caro Quintero, Miguel started the Guadalajara Cartel, which is one of the first to have thrived from association with the Colombian cocaine trade. The two men who helped Miguel Gallardo establish the cartel were arrested, so Gallardo, the single leader of the cartel â€Å"was smart enough to privatize

Contract Law Making Business Contracts

Question: Describe about the Contract Law for Making Business Contracts. Answer: The law of contract A contract is an agreement which can be enforced as per law. An agreement is formed when there is an offer made by one person (offeror) to another person (offeree) and the offeree accepts the offer made to him without bringing any variations to its terms. But an agreement can be converted into a contract when there is presence of intention of the parties to be in legal relation, the parties to the transaction must be major and the transaction between the parties must have consideration involved in it. (SLD, 2012) So, the basic elements which constitute the promises amid the parties in to a contract are: Offer An offer is the primary ingredient for formulation of a contract. It is made by an offeror to an offeree. It is the intention of an offeror which he communicates to an offeree in order to enter into contract with him. An offer in order to be considered as concluded and complete must be communicated to an offeree (Clarke v Dunraven (1897). In order to be valid an offer must be simple and clear.. Further, an offer can be made to a specific person or to the world at large (Carlill v Carbolic Smoke Ball Co[1893]. When the offers are at world a large then they are open offers and it can be accepted by anybody from the public by acting upon the same. But in case the offer is for a specific person or group of persons then such specific person is only eligible to accept the offer. (Cheshire et al, 2012) Invitation to treat An Invitation to treat is another concept which is many times confused with an offer but rather is different from an offer. In invitation to treat, the person (inviter) does not make any offer rather he invites offers from people upon his invitation. Once an offer is made to him by the prospective offeror then he can either accept or reject the same. If he makes an acceptance of offers then there is a concluded agreement between the parties (Payne v Cave(1789). Invitation normally takes place when there is advertisements, display of goods on shelf with price tag in a showroom, auction etc. (Cheshire et al, 2012) Unilateral and Bilateral offers The offers which are made by an offeror and there is no requirement of any formal acceptance to make a binding contract, then, such kind o offers are unilateral. In unilateral offers the offeree does not make a formal communication of an acceptance, rather, just acts as per the terms of the offer in order to make a binding contract (Carlill v Carbolic Smoke Ball Co[1893]. Whereas, in bilateral offers, there is mutual exchange of offers and acceptance in order to make a binding contract amid the parties. (Nicolas TW, 2016) Acceptance An acceptance is said to occur when an offer is assented by an offeree. An acceptance is one of the main ingredients in forming an agreement. If an offer is not accepted then there cannot be an agreement or a contract. An acceptance must be clear and proper in order to be valid. In order to make a valid acceptance it must move from the offeree. An acceptance by a person to whom no offer is made is no acceptance in law (Mondial Shipping and Chartering BV v Astarte Shipping Ltd (1995). Also, an acceptance is valid provided the same is made before the revocation of an offer. An acceptance can be made orally or in written form. An acceptance is said to be complete when it is communicated to an offeror by an offeree. An offeree must follow the mode of acceptance prescribed by the offeror and if no mode is mentioned then a reasonably mode is sufficient to make a binding contract. Further, if an acceptance is made via post then it is complete as soon as an acceptance is made and not otherwise. Also, an acceptance can only be made when the offeree is aware of the offer. If an acceptance is made without knowing he offer then there cannot be a valid acceptance. (Jalil A, 2011) Counter offer Further, if an offeree does not accept the offer and gives his own terms or moulds the terms of an offer prior making an acceptance then the same is termed as a counter offer. Upon making of counter offer, the original offer comes to an end and the counter offer becomes the new offer (Hyde v Wrench (1840). Now it is the new offer which is alive and can only be accepted by the old offeror in order to make a binding contract amid the parties. (Jalil A, 2011) Intention to be in legal relation In order to form a contract, apart from an offer and acceptance, there must be an intention to be in legal relation with each other by the parties. If the intention of the parties to be in legal relation with each other is not present then there cannot be a concluded contract. The intention to be in legal relation is presumed to be there in case of commercial transactions but the same is presumed to be absent in case of social and domestic relations unless the same is disapproved (Merritt v Merritt[1970]. Capacity of parties to contract The parties to a contract must have capacity to enter into a contract with each other i.e. they must be major and must be of sound mind. In case the parties are not capable then there cannot be a valid contract between the parties (Nash v. Inman [1908]. Consideration A Consideration is the value in terms of money or may be in kind which is paid to the offeree against the performance of the offer made by an offeror. It makes the promises enforceable in law. (Cheshire et al, 2012) So, all the above elements is required to make a valid contract. There cannot be a contract without these elements as each and every element is mandatory for the contract to exist. Now, various legal issues are now resolved. i. It is now analysed whether a contract was formed and if yes then who all are the contracting parties. Alan intends to sell his book. In order to do so, he posted an ad on his face book page. It specifies that he is offering his book to all of his friends who are enrolling or are enrolled in Kaplan Higher Education. He is offering his textbook and all of his notes. He offered the book and notes @ $200 and specified that any person whosoever is interested must pay him by 5th Nov 2015. Now, it is submitted that the action of Alan is a kind of invitation to treat as he never intends to make any offers rather he intends to receive offers by 5th Nov 2015. So, an invitation is made by Alan. Also, the invitation is only open to the facebook friends of Alan. Now, Bernard is Alan face book friend. On 2nd Nov 2015, he expressed his desire to buy the book but @ $150. Thus, he made an offer @ 150 to Alan. If Alan confirms the offer of Bernard then a valid contract can be made amid the two. On 3rd Nov, the offer made by Bernard was rejected by Alan. So, there is no confirmation of the offer by Alan and the offer of Bernard now stands revoked. Now, the posting of money by Bernard on 4th Nov is of no significance as the offer made by him to Alan is now stand revoked. So, communication of any acceptance without any offer is no offer at all. Charleen expressed his intention to buy the book and thus made an offer to Alan @ 200. However, Alan consent the offer of Charleen by nodding his head. However, the acceptance made by Alan was without intention as he gave his acceptance without intending to be abiding by the same. So, an acceptance without intention is no acceptance at all. Even the act of Charleen leaving the money on Alan table is of no significance. Damien though is not on the face book page of Alan had sent a message to Alan personally. He expressed his intention to buy the book and offered to make the payment by 4th Nov. He later pay Alan the required money and Alan confirmed that he will pay everything to him by 7th. So, there is a valid offer and acceptance amid the two and Damien and Alan are the two concluding parties. Now, Legal position of Bernard and remedies There is no contract that exists amid Alan and Bernard as Alan has rejected the offer of Bernard and thus here is no concluding contract. So, Bernard cannot take any legal action against Alan. Even if Alan has provided him with only the text book still Bernard cannot take any action. iii. Legal position of Charleen and remedies There is no contractual relationship amid the two because of lack of legal intention. Legal position of Damien and remedies Though no offer was made by Alan to Damien but an offer later made by Damien was accepted by Alan. So, there is a concluded contract amid the two. Alternative Dispute Resolutions Normally, the legal dispute is resolved in courts but the same are costly and time consuming. So in order to have faster resolution of disputes there are other dispute resolutions called Alternative Dispute Resolution (ADR) techniques. ADR can be done in the following ways. (Statecourts, 2016) Mediation Mediation is the procedure under which a third party (neutral person) tries to resolve the dispute between the parties without going into fault of parties but by guiding them. The main aim of the mediator is to focus on the resolution of the dispute without forcing his views or decision on either party. (Buttler S, 2016) Benefits In mediation the parties who are in dispute decide the result at the end. It saves the time which would have been taken in long litigation. The cost involved is also quite less. The parties can understand each others point of view. It can help in saving the relation between the parties who are in dispute and lead to future working and good relation among them. The parties do not approach court which in turn does not dent their reputation in market due to legal cases. Drawbacks In case the mediator is a not a lawyer then there may be issues regarding the language of the final decision of the mediator. A mediator does not provide legal advice. The parties to mediation may try to influence mediator in many ways which may influence his decision. Arbitration In Arbitration, the parties who are in dispute with each other agree over person/persons who is/are third party and neutral to the parties in dispute. The parties in arbitration are accompanied with their lawyers who present their case to the arbitrator and the arbitrator gives his decision upon the material provided before it and as per the merit of the case. The decision of the arbitrator is binding upon the parties. (Findlaw, 2016) Benefits The arbitration is cost effective as compared to litigation. The arbitrations are generally time bound and thus the decision takes much less time as compared to litigation. As both parties decide the arbitrator, so the decision of the arbitrator carries fairness for both the parties and the parties abide by same as they have faith in the person. Finality of arbitrators decision makes it most appropriate system. Simple procedure as compared to courts. The arbitration is not carried in open court so it provides confidentiality to parties. Drawbacks When the decision of the arbitrator is challengeable then the parties may move to court adding cost after arbitration. If parties approach court after arbitration then it is time consuming. Sometimes the fairness issue is there as the companies sometimes hire same arbitrator who favours them in matters referred to them. Location of arbitration can also be suffering for party as it involves more cost and time in order to approach a far destination for arbitration. There is no jury as the arbitrator is himself a judge. The arbitrators decision even if it is incorrect is very hard to appeal. Reference List Articles/Books/Journals Cheshire et al, (2012) Law of Contract. Nicolas TW (2016) The contract Law. Jalil A (2011) Clarification of Rules of Acceptance in Making Business Contracts. Vol. 4, No. 1; March 2011. Case laws Carlill v Carbolic Smoke Ball Co[1893] Clarke v Dunraven (1897). Hyde v Wrench (1840). Merritt v Merritt[1970]. Mondial Shipping and Chartering BV v Astarte Shipping Ltd (1995). Nash v. Inman [1908]. Payne v Cave(1789). Online Material Buttler S (2016) The pros and cons of mediation at:https://gjclaw.blogspot.in/2015/03/the-pros-and-cons-of-mediation.html. Findlaw (2016) https://adr.findlaw.com/arbitration/arbitration-pros-and-cons.html. The Law Teacher (2016) capacity law https://www.lawteacher.net/lecture-notes/contract-law/capacity-lecture.php. SLD (2012) Requisite elements in the formation of a contract https://singaporelegaladvice.com/law-articles/requisite-elements-in-the-formation-of-a-contract/. Statecourts (2016) overview of alternative dispute resolution https://www.statecourts.gov.sg/Mediation_ADR/Pages/Overview-of-Alternative-Dispute-Resolution.aspx.