Rise of the Merchant Class in the Middle Ages

Rise of the Merchant Class in the Middle Ages The Middle Ages, which is considered to be the time between 500 and 1500 AD gave rise to a new economic and cultural experience in Europe. The transition from the Classical Age to the Renaissance was a process of evolution. After the barbarian invasions of Europe during the fourth and fifth centuries by the Anglos, Saxons, Goths, and Huns, the great Roman Empire declined. It was only starting in the eighth century that Europe slowly began its cultural, as well as economic, recovery. Politically, several new states emerged starting in the year 900, including the consolidated Scandinavian states under King Sweyn of Denmark; the creation of a Hungarian state; and the states of Bohemia and Poland. These states were very stable monarchies, which helped widen commercial exchange between one another. The Scandinavians traded extensively with the east, the Mediterranean countries, and with Russia. The end of various civil wars in Europe helped countries like Italy make a name for themselves in trade with the Mediterranean. Pisa, Genoa, and Amalfi, were all major commercial hubs. Germany and northern Europe were also able to make use of trade routes to the Mediterranean through Italy and France. Another result of the more settled Europe was the revival of agriculture, which was further stimulated by commercial expansion due to the growing exchange economy. Many cities began expanding, creating the demand for larger amounts of agricultural produce. As a result, previously unproductive lands in countries such as France and Germany were converted to fertile farms, rich with grazing herds. Nobleman with large pieces of uncultivated land offered these lands to peasants for cultivation in return for which they collected payment or rent. This was the beginning of the feudal system in Europe. Under the feudal system, kings gave nobleman large grants of land in exchange for soldiers. In exchange for fighting, the soldiers were given gifts of jewels, horses, and sometimes land, in territories that had been newly conquered, called fiefs. These vassals, or servants to the king had authority over the peasants, called the serfs, who worked on their land. The vassals became powerful local rulers who made their own laws, which the workers on their land were required to obey. Economic progress stimulated by this system gave rise to new towns and a rise in population in areas that were previously unsettled. The rapid increase in population due to the economic revolution resulted in a shortage of land. However, instead of causing a problem, farming and land cultivation techniques improved so that land could be used more efficiently. This also shifted quite an amount of the population away from farming jobs, and into jobs in towns and cities. By the 1100s, these hard working urban citizens formed the middle class and were enterprising, ambitious, and contributed to the success of an early form of capitalism. This medieval capitalism is often referred to as the birth of capitalism. Contributing to the development of the European intellectual, religious, and moral recovery was the setting up of new monasteries, since the church had also suffered due to the numerous invasions in the past. The more settled political climate helped bring back the influence of the church. A few of the great noblemen founded new reformed monastic houses that were more inclusive including the famous abbey of Einsiedeln, the monastic school of St. Emmereram, and the Episcopal school of Bamberg. This reformation of the monasteries broke down regional differences and revived discipline as well as literary and artistic life. The feudal ideas of lordship extended even to the monasteries, as in the case of the abbot of Cluny who was the head of all monasteries founded or reformed by his order. Even though there was much political, economic, and religious progress, new problems were created by all this development. Consolidation of kingdoms created complications for German, Italian, Hungarian, and Polish rulers. In Germany, the economic recovery caused tension between the aristocracy, which was only interested in profiting as much as possible from the revived economy, and the government. In Italy, it led to antagonism between the knights, and their feudal lords, or bishops. However, the social revolution between the knights and the bishops gave rise to powerful new classes that strived to better their positions, leading to nobles and non-nobles. In spite of all of these tensions, people still had jobs to support the growing population in cities and towns. Any commodity that was unavailable in individual fiefdoms, was obtained by barter. Artisans made farm implements, dishes, and clothing, which they exchanged for the grain, wine, and meat produced on the farms. Beginning in the tenth century, a new class of trading people emerged, referred to as peddlers. Peddlers traveled from town to town, supplying the nobility and the peasants with the products they needed. The areas frequently visited by them quickly developed into towns, which emerged as major centers of trade and attracted many merchants who supplied the prospering nobility. As the nobility got wealthier, they were able to afford gems, silks, exotic spices, and other symbols of wealth. The merchants who previously went from town to town, were now traveling to foreign locations such as Egypt, Morrocco, and Turkey. The activities of the traders permanently altered the f ace of European society, leading to a commercial revolution, which was essentially the shift of power from the landlords and nobility to the merchants. Concentration of wealth in emerging cities such as Florence, Venice, London, and Paris attracted merchants worldwide. By the tenth century, extensive trade routes had been established connecting Britain, the European continent, the Middle East, and North Africa, by river and by sea. Asia and the Middle East had several excellent overland trade routes. For instance, the four thousand mile long Silk Road led out of China all the way to the Black Sea in Eastern Europe, through Persia, Afghanistan, and India. Germanys Hanseatic League saved traders time with their larger ships that carried wine and salt to the East in exchange for the grain and timber they bought back. Some traders and merchants began plying the sea routes in search of more goods and profits. Due to its location between the East and Europe, Italy was a vital trading country. Merchants from Venice traded with those from the Byzantine Empire through Turkey, and merchants from Pisa and Genoa traded with cities in North Africa. They brought back African gold and ivory, precious stones, silks, perfumes, and spices from Persia and India, Turkish carpets, Persian ceramics, and Syrian glass and metalwork, all of which commanded high prices in Europe. In the eleventh century, local merchants primarily sold their goods in weekly markets. A network of weekly markets was one of the main components of the booming economic progress that swept across Europe in the Middle Ages. These markets spurred the creation of money, and harbored huge amounts of wealth to the merchants. Fairs, which lasted for weeks and were held at crossroads of important trade routes, were another means by which well-established merchants bought and sold goods. Some of the most important trading fairs included the 12-day cloth fair and the 8-day leather fair, both held in Champagne, France. Since fairs and markets could easily be ruined by undesirable weather conditions, some traders eventually came up with ways to make profits without ever leaving their homes. Using credit, they bought and sold goods through agents at various fairs, giving rise to a form of banking. This contributed to a free flow of money, which enriched the lives of people in all classes of society. This increase in wealth helped patronize artisans, goldsmiths, and retailers. The towns that expanded around the fair sites attracted business and brought about the standardization of currency, weights and measures. The merchant class largely populated the new towns that sprang up, and influenced the economy and social life of their societies. The towns attracted specialists such as grocers, spice merchants, cobblers, apothecaries, and goldsmiths who formed unions called guilds. These guilds set the prices for the goods they produced, as they were the only ones in the area creating this product in the area. Therefore the citizens in this area were willing to pay whatever price they charged. Their control over these prices led to much of their control over the economy. Additionally, they effected and influenced social life with the elaborate feasts and celebrations they held for religious services, holidays, and similar events. With the increase of merchant activities and the rise of the merchant class, it became necessary for them to learn to read, write, do arithmetic, and have a general knowledge of foreign affairs. Local governments and scholars, both of which profited from teaching the children of these merchants, set up schools to take care of the demand for education. The success of the schools in turn, led to the establishment of universities, so that people were able to continue their education if they desired. Some of these universities include Oxford, Cambridge, Chartres, Reims, and the University of Paris. The rising importance of schools broke the monopoly that the church previously had in the area of education. Since merchants made great profits from buying and selling goods, they were considered sinners by the church, because they enriched themselves rather than working for common good. The fear of hell was very real and the church often confiscated merchant estates. To avoid this, merchants began contributing some of the wealth they made to monasteries and churches, and providing funds to charitable causes including hospitals and homes for those without shelter. The rise of the merchant class gained them access to high society and some became famous patrons of the arts, constructing concert halls, churches, and other cultural centers. These merchants spread wealth and culture to the masses and assisted in dissolving the previously existing social structure by creating a society where even a peasant was able to rise in wealth and status. Merchants that joined the ranks of nobility further strengthened their position in society by patronizing the arts even more. They hired artists, musicians, and writers to produce works that still live on today, including works of art such as Madonna and Child, Nativity, and the Wise Man, by renowned artists such as Michaelangelo, Botticelli, and Leonardo Da Vinci. Some of the extremely successful merchants, known as the merchant princes, sometimes became so powerful they controlled their countries wealth. The Medicis, a family of bankers that lived Italy, are an example of such powerful and successful merchants. As a result of this patronage of the arts, many architectural and artistic gems were produced during this time. Some of the buildings built during the Middle Ages using the Gothic or Romanesque styles used such advanced techniques that these buildings are still existent today. The Chartres cathedral, the Laon Cathedral, and St. Denis, all in France for instance, represent the quality of the churches, houses, and castles built during that time. Also produced during the Middle Ages was some beautiful art work that is often overlooked, including jewelry, pottery, metalwork, carved woodwork, sculptures, and illustrated manuscripts. Most of the art work was created in the setting of the church, such as murals of Biblical stories, chalices, shrines, reliquaries, and statues of angels and saints. The rise of the merchant class also made portraits very popular, along with intricate work for personal use such as woven tapestries, decorated manuscripts, tableware, jewelry, and carved furniture . Inventions and technology during the Middle Ages were in the form of a gradual improvement in the way things were done, rather than a series of dramatic discoveries. It took place in the form of a gradual shift away from mass slavery, the use of wind power, of open fields in agriculture, the use of the wheelbarrow, double entry book-keeping, and finally the use of firearms and printing. The windlass, a rope around a barrel which turned using a crank, was used to lift heavy loads. Water mills and windmills were used to power all kinds of machinery. For instance, a hammer driven by a mill was used in fulling cloth, which is a method of cleaning fabric used in textile production. A new kind of loom was introduced as well as the invention of the spinning wheel, which greatly reduced the time taken to weave cloth, and produce new fabrics. The secrets of producing silk were passed on from Greece to other parts of Europe. Papermaking was brought back from China, greatly reducing the cost an d time to write and produce books. The growth and progress of the European civilization in the middle ages was largely due to the rise of the merchant class. With their ambition and hard work, they paved the way for modern times. Under their leadership, Europe enjoyed a prosperity not known since the Roman Empire. When Europe emerged from the Middle Ages, it had attained a level of sophistication in its universities, literature, art, learning, science and technology, that were unmatched in the world. Significant advances were made in the areas of tenant farming, harnessing the horse to the plough, cloth making, iron working, ship building and navigation. This technical progress would not have amounted to much if it had not been coupled with the intellectual tools that the businessmen of that time used to manage his business and observe and measure fluctuations in the economy. The world of trade had to perfect various systems: from dealing with rates of exchange for goods and services outside their towns or even countr ies, establishing credit procedures, legal bases in keeping with the times, and methods for monitoring and balancing their accounts. All of these eventually became the foundation for our modern system of economic relations. Although it is often ignored in history, the Middle Ages saw the birth of a new cultural experience in Europe, which eventually led to the Renaissance. The cultural heritage of the Middle Ages is still apparent in architecture, art, education, science and technology, that have survived the test of time. Bibliography: Gold and Spices: The Rise of Commerce in the Middle Ages, Jean Favier The Medieval Merchant, Stuart A. Kallen The Middle Ages, Giovanni Caselli The Late Middle Ages, Raintree Steck-Vaughn Library The Medieval World, Mike Corbishley Life During the Middle Ages, Earle Rice, Jr.

Collective Strategy Development Essay

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John Wiley ; Sons is collaborating with JSTOR to digitize, preserve and extend access to Strategic Management Journal. http://www. jstor. org Strategic Management Journal, Vol. 9, 375-385 (1988) AND COMPETITIVE MATCHING COLLECTIVE RUDIK. F. BRESSER Baruch College, The City University of New York,New York,New York,U. S. A. This paper discusses possibilities for combining collective and competitive strategies. Combinations can be problematic if competitive intentions are disclosed through the information links resultingfrom collective strategies. After describing how different collective strategies may lead to an uncontrolled disclosure of strategic information, a typology evaluating the feasibility of strategy combinations is developed. The typology’s implications for research and managerial practice are discussed. A recent development in the business policy literature is a concern with strategic planning at a collective level. Collective strategies are attempts by sets of organizations to manage their mutural interdependence and the system dynamics of their interorganizational environments (Astley and Fombrun, 1983a; Bresser and Harl, 1986; Thorelli, 1986). In managing interdependent and dynamic environments, collective strategies can be reactive by absorbing movement within an environment, or they can be proactive by forestalling the unpredictable behavior of other organizations. Firms can use collective strategies in combination with competitive strategies. This paper discusses the extent to which such combinations are feasible. MANAGING INTERDEPENDENCE Organizational interdependence exists whenever one organization does not entirely control all the conditions necessary for achieving a desired action or outcome (Pfeffer and Salancik, 1978). In addition to environmental movement, interdependence can cause problems of decision-making uncertainty for focal organizations. This occurs because the success of activities chosen by any interdependent organization depends on the activities selected by other organizations. Consequently, an interdependent organization may need to consider other organizations’ actions, and it faces decision-making uncertainty if it is aware of its interdependence and has difficulties in controlling the activities of other organizations. Decision-making uncertainty is most likely to be perceived among horizontally interdependent organizations operating in oligopolistic markets. Under these conditions all organizations are aware of their mutual interdependence and have considerable difficulties in controlling each other’s behaviors as they compete with one another for market share (Fombrun and Astley, 1982; Pennings, 1981). Business firms can use both competitive and collective strategies to manage their interdependencies. The literature distinguishes three major dimensions of competitive strategies: price, promotional, and product competition strategies (Khandwalla, 1981). Competitive strategies manage interdependence successfully if they result in advantageous competitive positions, thus forestalling interdependence and reducing decisionmaking uncertainty (Pennings, 1981). For Received 20 October 1986 Revised 21 July 1987 ? 0143-2095/88/040375-11$05. 50 1988 by John Wiley & Sons, Ltd. 376 R. K. F. Bresser Table 1. Coordination mechanisms for collective strategies Coordination mechanism Regulative legislation Contracting Mergers Joint ventures Interlocking directorates Trade associations Collusion and industry leadership Degree of formalization High High High High Moderate Moderate Low instance, product differentiation can create a protected domain for a focal organization with boundaries hard to penetrate by other competitors. However, in complex business environments interdependencies often are obscured from focal organizations so that individually coping with the dynamics of these environments becomes problematic (Emery and Trist, 1965). In these situations, collective strategies can supplement competitive strategies as a means of coping with the variation of interdependent environments (Astley and Fombrun, 1983a). CONCEPTIONS STRATEGY OF COLLECTIVE CONFLICTS BETWEEN COMPETITIVE AND COLLECTIVE STRATEGIES Bresser and Harl (1986) described the dynamic relationship between competitive and collective strategies as being composed of two strategic perspectives that are dialectically related to one another. For instance, when competitive strategies prevail within a market the resulting turbulence and decision-making uncertainty eventually will encourage organizations to use more collective forms of strategizing. However, when collective strategies prevail and create dysfunctions (such as reductions in strategic flexibility, amplified impacts of external disturbances, and attraction of innovative outsiders) which also cause environmental movement and decision-making uncertainty, competitive strategies may again be considered the more attractive methods for coping with interdependence. The dialectical relationship between competitive and collective strategies implies that organizations should remain alert to potential dysfunctions developing from their operating strategies, and that they should maintain a capacity to alternate between more collective and more competitive forms of strategizing (Bresser and Harl, 1986). However, some conflicts between competitive and collective strategies can be anticipated and should be considered before a particular strategy mix is adopted. This paper evaluates combinations between competitive and collective strategies in light of a potential conflict arising from the need to both share and conceal strategic information. Whenever organizations attempt to use both types of strategies simultaneously, i. e. competitive The term ‘collective strategy’ has been defined in two different ways (Astley and Fombrun, 1983a; Bresser and Harl, 1986). On the one hand a collective strategy is defined as a larger interorganizational network which emerges unintendedly. As individual organizational actions aggregate into interorganizational networks an unintended collective strategy emerges that none of the participating organizations could have foreseen. Developments in the telecommunications industry exemplify the emergence of an unintended collective strategy (Astley and Fombrun, 1983b). On the other hand a collective strategy can also be voluntary and intended. Such a collective strategy results from the purposive collaboration of organizations attempting to manage their mutual interdependence. This paper focuses on voluntary collective strategies, developed by oligopolists to manage their horizontal interdependence. Voluntary collective strategies can be based on different coordination mechanisms. Table 1 presents these mechanisms using degree of formalization as the distinguishing criterion (Bresser and Harl, 1986; Fombrun and Astley, 1983). Regulative legislation (resulting from collective lobbying) and contracting represent coordination forms with high levels of formality. Collective strategies based on interlocking directorates or trade associations are characterized by moderate levels of formality, and collusion as well as industry leadership can be classified as informal coordination mechanisms. Matching Collective and Competitive Strategies strategies in one business area and collective strategies in others, a potential for contradictory activities or conflicts arises, because the major advantage of a collective strategy is a major disadvantage from a competitive point of view. With regard to managing interdependence the major advantage of a collective strategy is that it establishes linkages and communication channels through which information about other interdependent organizations can be obtained. Through this information the behavior of other organizations becomes predictable. This makes an environment more stable and less threatening for a focal organization, and thus reduces decision-making uncertainty (Fombrun and Astley, 1983; Pennings, 1981). Precisely this advantage of a collective strategy (stability through predictability) is a disadvantage if organizations wish to use competitive strategies to further their growth goals. Successful competitive strategies require that organizations maintain the secrecy of their strategic plans to forestall imitation (Starbuck and Nystrom, 1981). However, this need for secrecy is jeopardized if interorganizational linkages and communication channels resulting from a collective strategy allow organizations to predict and anticipate one another’s moves in areas where they wish to compete. Thus, organizations face a risk of uncontrolled information disclosure when using collective and competitive strategies side by side. Risk of uncontrolled information disclosure is defined as the likelihood that a disclosure of strategically sensitive information will occur, where the process of disclosue is uncontrolled from a focal organization’s point of view and damaging to its competitive plans. The potential damage resulting from an uncontrolled disclosure of information is particularly salient in oligopolies (the dominant US market structure) because in such markets ompetitors typically are in a position to use sensitive information to exert control over each other’s fates (Pennings, 1981; Scherer, 1980). Evaluating the risk of uncontrolled information disclosure emanating from collective strategies is important for two reasons. On the one hand, such information disclosure tends to render competitive strategic intentions ineffective. On the other hand uncontrolle d information disclosure tends to aggravate problems of strategic inflexibility. Bresser (1984) and Bresser and 377 Harl (1986) argued that organizations adopting collective strategies limit their strategic flexibility because, by agreeing to abstain from certain types of competitive behaviors such as price competition, they curtail their repertoire of available strategic tools. When considering the problem of uncontrolled information disclosure, losses in strategic flexibility resulting from a collective strategy may be even more encompassing. If the managements of organizations realize that the communication links provided by a collective strategy allow for an uncontrolled disclosure of strategic plans, they may be reluctant to pursue competitive strategies even in those business areas that are not subject to a collective agreement. PROCESSES IMPAIRING SECRECY Since potential combinations between competitive and collective strategies face the risk of uncontrolled information disclosure resulting from collective strategy links, they raise the issue of strategic fit (Venkatraman and Camillus, 1984). In order to minimize problems of uncontrolled information disclosure it is necessary to obtain some degree of compatability among possible strategy combinations. Attaining a fit between competitive and collective strategies requires first of all an appreciation of the processes that may impair an organization’s desire to maintain the secrecy of its strategic plans. Table 2 summarizes for each type of collective strategy the particular processes that may lead to an impairment of secrecy, and it assesses the risk of uncontrolled disclosure of information. If collective lobbying leads to protective regulation the activities of regulators may impede competition (Pennings, 1981). Regulators often collect and disseminate a wealth of information about regulated industries. Through these information flows, regulators can allow competitors to forecast each other’s moves even in areas that are not subject to regulatory control. For example, Litwak and Rothman (1970) suggested that the Federal Communications Commission had provided the broadcasting networks with so much information about the broadcasting industry that the networks were able to anticipate their competitors’ behavior and, as a result, effective competition was not possible. The autonomy of 378 R. K. F. Bresser Table 2. Processes impairing secrecy and risk of uncontrolled disclosure by type of collective strategy Type of collective strategy Impairment of secrecy Risk of uncontrolled information disclosure Regulative legislation Contracting Mergers Joint ventures Interlocking directorates Trade associations Collusion and industry leadership Regulators collecting and disseminating information Contracts contingent on information Dissatisfied employees (defectors) Mediation of information Passing on of information due to multiple and indirect communication links Distribution of trade statistics Informal communication High Low Low Intermediate High Intermediate Low regulatory agencies in their information-gathering activities results in high risk of uncontrolled disclosure. Contracting refers to the negotiation of formal agreements among organizations (Thompson, 1967). In general, the information exchanged as a result of contractual negotiations will be focused, avoiding the disclosure of sensitive competitive aspects. However, some contracts such as bank loans may require that focal organizations provide extensive information about their competitive plans. This raises the possibility that information leaks within the information-seeking institution will be exploited by a focal organization’s competitors. Since he disclosure of sensitive information in the context of contractual negotiations is not very common, the risk of uncontrolled disclosure can be considered low. Mergers and joint ventures are two special forms of contracting. Mergers, with the exception of hostile takeovers, are contracts through which two or more organizations comneunder common control. Joint ventures can be viewed as partial mergers which preserve the autonomy of the org anizations involved. Often mergers are accompanied by a host of administrative problems (Lubatkin, 1983). For example, departments and operations must be consolidated and initial inequities in compensation have to be resolved. If such administrative problems remain unresolved, inefficiencies will result, as well as employee dissatisfaction and turnover. The merger between Kennecott Corp. and Carborundum Co. is a case in point (Business Week, 1983). The two companies’ managements quarreled over administrative problems and, after a short period of infighting, most Carborundum executives jumped ship. There is danger that defecting executives may disclose strategically sensitive information concerning the merging firms when they join other organizations within the same industry. However, the risk of uncontrolled disclosure resulting from a merger is considered low. This is because senior executives leaving merging firms often receive generous severance compensation for which they promise continued confidentiality. Additionally, since merging firms often develop new strategic concepts, the information available to departing executives is likely to be quickly obsolete. If a collective strategy is based on a joint venture the risk of uncontrolled disclosure is considered to be at intermediate levels. Although the cooperation provided by a joint venture is restricted to specific, mutual business problems, the regularity and longevity of interactions typical of a joint venture may allow participating firms to improve their intelligence about each other’s competitive strategies. For example, firm representatives engaged in joint ventures can develop friendship ties where they feel free to discuss more general strategic issues. During such discussions sensitive information may be disclosed inadvertently. Interlocking directorates result from organizational co-optation activities whereby organizations appoint external representatives to their Matching Collective and Comnpetitive Strategies boards of directors. Since many directors sit on the boards of two or more companies (Bunting and Barbour, 1971), interlocking directorates emerge which can be used as instruments for managing interdependence and uncertainty by encouiraging cooperation and the formation of collective strategies (Aldrich, 1979; Pennings, 1980, 1981). However, the risk of uncontrolled disclosure is high because the scope and the intensity of intra-industry communication facilitated by direct and indirect interlocks is beyond the control of individual organizations. Therefore, it is very difficult for individual organizations to conceal their competitive strategies when their directors have membership in a network of interlocking directorates. Trade associations provide member organizations with special services at low costs. For instance, they may distribute trade statistics, provide credit references on customers, offer legal and technical advice, or help collect bills (Olson, 1965). In addition, associations can aid in removing decision-making uncertainty resulting from interdependence. Since trade statistics generally include prices quoted in recent sales transactions as well as cost developments, member organizations have the opportunity to coordinate their market behavior and thus implement a collective strategy (Scherer, 1980). The dissemination of statistical information provided by trade associations may impair the desire of focal organizations to maintain secrecy their competitive strategies. While firms regiarding are often in favor of price and cost reporting activities, they run the risk that other sensitive information concerning their competitive strategies may also be disclosed. Trade associations sometimes analyze industry trends regarding product development or marketing strategies, and thus allow competitors to anticipate each others’ moves. A focal organization may have little control over the kind of information being disseminated because trade associations are often dominated by a few powerful organizations. Olson (1965) described the National Association of Manufacturers as largely financed and controlled by a few big corporations, although the association had several thousand members. There is the possibility that such domination leads to activities favoring a handful of member organizations rather than the majority. In addition, the selective services provided by 379 ssociations function as subtle forms of coercion restricting a firm’s flexibility. The exclusivity and low costs of legal, financial or other services operate as strong incentives for joining or remaining within an association even if a focal organization disagrees with some association activities. Thus, when using trade association activities to enforce a collective strategy, a moderate risk of uncontrolled information disclosure is likely. The term collusion denotes express agreements, open or secret, that have the purpose of restricting competition. Most collusive agreements are outlawed in the United States because they encourage monopolistic pricing behavior. Nevertheless, collusive practices are widespread and often effective means of managing interdependence. Their attraction is associated with their high degree of informality which makes it difficult for outsiders to detect conspiratorial agreements (Khandwalla, 1981). Industry leadership is a tacit version of collusion based on imitation. It describes a situation where a specific firm is the acknowledged leader in setting prices, and other firms follow. As opposed to collusive agreements, industry leadership has the advantage of not being contrary to the antitrust laws. It is considered legal as long as it is grounded on voluntary imitation rather than explicit communication (White, 1981). Since collective strategies mediated by collusive agreements are based on informal communication and, in the case of industry leadership, on imitation, the risk of uncontrolled disclosure is low. Colluding firms will share information only in areas where they wish to cooperate while maintaining the secrecy of their competitive plans. The above risk assessments imply that uncontrolled information disclosure is always damaging for the success of a focal organization’s competitive plans. While the dynamics of oligopolistic markets would tend to support this assumption (Scherer, 1980), the degree of damage resulting from uncontrolled disclosure can be viewed as contingent upon several situational variables. Specifically, four situational variables appear important: breadth of information disclosure, quality of information disclosure, asymmetry in interdependence, and event control. These situational variables can facilitate the combination of a ‘high-risk’ collective strategy with competitive strategies, and they can make the adoption of a 380 Matching Collective and Competitive Strategies dimensions. This is relevant for evaluating strategy combinations because an uncontrolled disclosure of information is less troublesome if competitors are unable to capitalize on the information due to their inability to respond rapidly to a focal organization’s competitive moves. Table 3 presents a typology of possible combinations between competitive and collective strategies, and evaluates their feasibility from the perspective of individual firms. Generally, a strategy combination is considered feasible if (1) the risk of uncontrolled information disclosure is low. Feasibility evaluations also take into account (2) the degree of competitor responsiveness typical for a competitive dimension, and (3) typical characteristics of specific collective strategies, namely the number of participants involved and the stability of an agreement. Considering typical characteristics of collective strategies is important because such characteristics can modify feasibility ratings that are based on assessments of the risk of uncontrolled information disclosure and the level of competitor responsiveness. Situational variables, described above, may mediate the damage resulting from uncontrolled information disclosure but do not lend themselves to generalizations and therefore are excluded from considerations leading to the typology shown in Table 3. However, in using the typology, situational variables will have to be taken into account, as is shown in the implications section. In Table 3 the competitive dimensions pricing, advertising and promotion, and product innovation are distinguished for each of the seven collective strategies summarized in Tables 1 and 2. Within each of these competitive dimensions, organizations can relate to each other by using either competitive or collective strategies. Thus, six strategy combinations are possible for each type of collective strategy,’ leading to a total of 42 combinations presented in Table 3. I Since only two values are possible within each competitive dimension, and since the extreme cases (competitive or collective strategies across all competitive dimensions) are irrelevant as they do not represent combinations of collective and competitive strategies, the total number of strategy combinations C for each type of collective strategy can be calculated by collective strategy with low or moderate risks of uncontrolled disclosure problematic. For example, the potential damage resulting from uncontrolled disclosure may be considered low, and thus can facilitate the adoption of a collective strategy where the risk of uncontrolled disclosure is high, when the competitive information that could be disclosed is not very encompassing (breadth of information disclosure), or of questionable quality regarding its reliability and/or timeliness (Adams, 1976; Smart and Vertinsky, 1977). Similarly, if interdependence is asymmetric, with some organizations being in a relatively powerful competitive position (e. . due to their size), uncontrolled information disclosure may not be very troublesome for these powerful organizations because they know that other competitors lack the resources to exploit the disclosed information (Pfeffer and Salancik, 1978). Likewise, damage may be low and containable, if organizations can rapidly and effectively counteract events leading to uncontrolled information disclosure, for example, by changing perso nnel or the content of a collective strategy (Pfeffer and Salancik, 1978). Implications for evaluating the feasibility of strategy combinations resulting from the role of situational variables are discussed below. COMBINATIONS OF COMPETITIVE AND COLLECTIVE STRATEGIES Apart from an understanding of how collective strategies can lead to uncontrolled information disclosure, an assessment of what types of combinations between competitive and collective strategies are feasible requires that different competitive strategies also be distinguished. Three distinguishing dimensions of competitive strategies are pricing, advertising and promotion, and product innovation (Khandwalla, 1981). These dimensions can be classified according to their degree of ‘competitor responsiveness’ (Ansoff, 1984). The term competitor responsiveness refers to the speed with which competitors can respond to variations in competitive conditions. While price cuts usually can be matched instantly, it takes much longer to organize retaliations to a heavy advertising campaign, and even longer to respond to product innovations (Khandwalla, 1981; Scherer, 1980). Thus competitor responsiveness decreases along these three competitive C = (2†³1- 2) where d is the number of competitive dimensions considered. For d=-3 dimensions the number of possible strategy combinations is C=6. R. K. F. Bresser Table 3. Combinations of competitive and collective strategies and their feasibility Dimensions of competition Types of strategy Pricing combinations 1. 1 1. 2 1. 3 1. 4 1. 5 1. 6 2. 1 2. 2 2. 3 2. 4 2. 5 2. 6 3. 1 3. 2 3. 3 3. 4 3. 5 3. 6 4. 1 4. 2 4. 3 4. 4 4. 5 4. 6 5. 1 5. 2 5. 3 5. 4 5. 5 5. 6 6. 1 6. 2 6. 3 6. 4 6. 5 6. 6 7. 1 7. 2 7. 3 7. 4 7. 5 7. IL Competition Regulation Regulation Competition Regulation Competition Competition Contracting Contracting Competition Contracting Competition Competition Merger Merger Competition Merger Competition Competition Joint Venture Joint Venture Competition Joint Venture Competition Competition Interlocks Interlocks Competition Interlocks Competition Competition Trade Association Trade Association Competition Trade Association Competition Competition Collusion/IL Collusio n/IL Competition Collusion/IL Competition Advertising and promotion Regulation Competition Regulation Competition Competition Regulation Contracting Competition Contracting Competition Competition Contracting Merger Competition Merger Competition Competition Merger Joint Venture Competition Joint Venture Competition Competition Joint Venture Interlocks Competition Interlocks Competition Competition Interlocks Trade Association Competition Trade Association Competition Competition Trade Association Collusion/IL Competition Collusion/IL Competition Competition Collusion/IL 381 Product innovation Regulation Regulation Competition Regulation Competition Competition Contracting Contracting Competition Contracting Competition Competition Merger Merger Competition Merger Competition Competition Joint Venture Joint Venture Competition Joint Venture Competition Competition Interlocks Interlocks Competition Interlocks Competition Competition Trade Association Trade Association Competition Trade Association Competition Competition Collusion/IL Collusion/IL Competition Collusion/IL Competition Competition Feasibility of strategy combination Low Low Intermediate Intermediate Intermediate Intermediate Intermediate High High High High High High High High High High High Intermediate Intermediate High High High High Low Low Low Low Low Low Low Intermediate Intermediate Intermediate Intermediate Intermediate Intermediate Intermediate Intermediate Intermediate Intermediate Intermediate Industryleadership The first group of (six) strategy combinations uses competition in one or two competitive dimensions in conjunction with regulation as the basis for enforcing a collective strategy. The feasibility of all six combinations is rated either at low or intermediate levels. The first two combinations (1. 1 and 1. 2) have a low feasibility rating. If organizations use regulation to harmonize their promotional and product innovation activities, and have competitive flexibility in the area of pricing (combination 1. 1), their chances of competing successfully are slim. This is because 382 R. K. F. Bresser an industry may remain intense. In fact, often firms merge to obtain strategic advantages in the areas of price competition, promotion or product innovation wlhich may increase rather than decrease competitive interactions. When joint ventures serve as mechanisms to enforce collective strategies, feasibility ratings for strategy combinations are similarly favorable. This form of collective strategizing also tends to involve only a few organizations, allowing for competition within a particular area in spite of joint venture activity. fHowever, joint ventures carry a higher risk of uncontrolled information disclosure than contracting or mergers. Thus cautious feasibility evaluations seem appropriate when a focal organization engages in joint ventures in more than one comnpetitivearea, and when the only competitive dimension not subject to collective coordination is characterized by relatively high levels of competitor responsiveness (combinations 4. 1 and 4. 2). In these situations the relatively high number of information links among firms participating in several joint ventures multiplies the risk and potential damage of uncontrolled disclosure. If organizations choose interlocking directorates to coordinate intra-industry activity, they constantly run a high risk of uncontrolled information disclosure. Co-opted directors may intentionally or inadvertently, directly or indirectly, pass on sensitive information to a focal organization’s competitors. Thus, relying on interlocks to enforce collective strategies while simultaneously attempting to maintain some competitive flexibility does not appear feasible. The predominant feasibility rating assigned to the group of strategy combinations using trade associations as a means to develop collective strategies is ‘intermediate’. Although experience demonstrates that the coordination provided by trade associations mostly does not go beyond price and cost reporting (Scherer, 1980), the possibility of trade associations collecting and reporting other sensitive information is always acute. Often individual organizations cannot oppose such uncontrolled reporting of industry developments, especially if the association is dominated by a few powerful corporations. If trade associations do not engage in price reporting, but are used to develop collective strategies in the areas of advertising and promotion, and product innovation (combination 6. 1), a low uick competitor responsiveness can be expected with respect to the pricing dimension, and regulators are likely to disclose sensitive information concerning advertising and innovations. A similar argument applies to combination 1. 2, where competitive conditions exist only with regard to advertising and promotion, a dimension characterized by intermediate levels of competitor responsiveness. Since competitors usually need considerable time to respond to product innovations, combination 1. 3 (with regulation in the other two dimensions) is not quite as problematic as the first two combinations. However, the distinct possibility of uncontrolled information disclosure through regulator activities makes combination 1. 3 feasible only at an intermediate level. Combinations 1. 4 through 1. allow for competition in at least two dimensions. While these combinations provide organizations with a larger arsenal of competitive tools than the first three combinations, they also are considered feasible only at intermediate levels because of the risk of uncontrolled disclosure through regulators. The feasibility of strategy combinations involving contracting as a form of collect ive strategizing generally is considered high because the risk of uncontrolled information disclosure tends to be low. In addition, often (and in contrast to regulation) only few organizations participate in a particular contractual agreement, thus limiting the extent to which competition is constrained. If, within an industry of say eight oligopolists, three contract to standardize product designs, competition with the remaining five oligopolists in the area of product innovations is still possible and likely. The only strategy combination where a less favorable (intermediate) feasibility rating is assigned is combination 2. 1. If extensive contracting in the areas of advertising/promotion and product innovation has considerably lowered the participating firms’ strategic flexibility, relying on price competition as the sole competitive tool does not appear sensible. Price competition is likely to face a high degree of competitor responsiveness. The third group of strategy combinations, using merger activity to realize collective strategies, has high feasibility ratings throughout. The risk of uncontrolled information disclosure is low, and the number of firms involved in a merger is usually quite small, so that competition within Matching Collective and Competitive Strategies feasibility rating seems appropriate. Again, in this situation firms would maintain competition only in an area where high competitor responsiveness is likely. Combinations of competitive and collective strategies using the various forms of collusion and industry leadership are not as problem-free as the risk evaluation in Table 2 might suggest. Although collusive agreements are not burdened with the problem of uncontrolled information disclosure, their combination with competitive strategies appears feasible at an intermediate level at best. Since collusive agreements are informal and difficult to enforce, individual firmns have a strong incentive to chisel-that is to increase their profits by secretly deviating from the agreement (Stigler, 1964). Secret deviations cannot be concealed for long periods of time, and frequently result in collusive conspiracies breaking down and touching off bitter rivalries such as price wars (Scherer, 1980; Weiss, 1961). It is likely that the tendency of collusive agreements towards breakdown will be aggravated if colluding organizations decide to compete in some competitive areas rather than displaying ‘gentlemanly’, non-competitive behavior across all competitive dimensions. A firm’s successful competitive behavior in one area will encourage less successful firms to chisel in other areas that are subject to collusive coordination. Thus combinations of competitive and collective strategies can be expected to be volatile when collusion serves as a means for enforcing collective strategies. This volatility results from the particular characteristics of collusive agreements, and exists regardless of the risk for uncontrolled information disclosure or the level of competitor responsiveness. 383 SUMMARY AND IMPLICATIONS This paper extends the literature advocating the development of voluntary collective strategies as means to manage environmental turbulence and interdependence (Astley and Fombrun, 1983a; Bresser and Harl, 1986). It assesses the possibilities of combining competitive with collective strategies from the perspective of individual organizations. Such combinations may be problematic because an organization’s ability to maintain the secrecy of competitive strategic plans may be jeopardized by information links established through different forms of collective strategy (Fornbrun and Astley, 1983a; Starbuck and Nystrom, 1981). After discussing how collective strategies may lead to an uncontrolled disclosure of strategically sensitive information, combinations of competitive and collective strategies are classified according to their varying degrees of feasibility. A comparison of the ratings presented in Tables 2 and 3 makes apparent that the feasibility of strategy combination tends to be inversely related to the risk of uncontrolled information disclosure. If the risk and the feasibility ratings are expressed numerically with the values of ‘low’ equaling 1, ‘intermediate’ equaling 2, and ‘high’ equaling 3, a correlation coefficient can be calculated on the basis of all 42 strategy combinations. The resulting coefficient is r = -0. 70, indicating that within the present classification scheme about 50 percent of the variance in feasibility evaluations is accounted for by the risk of uncontrolled information disclosure. However, high risks of uncontrolled disclosure do not generally lead to low feasibility ratings, and low risks do not necessarily imply high feasibility scores , as is demonstrated by the combinations involving collective strategies based on regulation and collusion respectively. The unexplained variation in feasibility ratings suggests additional factors are important in assessing the feasibility of strategy combinations, notably the degree of competitor responsiveness and the particular characteristics of the type of collective strategy employed. Further variation in feasibility ratings can be expected when situational variables such as breadth and quality of information disclosure, asymmetry in interdependence, and event control are considered (Adams, 1976; Pfeffer and Salancik, 1978; Smart and Vertinsky, 1977). This is so because these situational variables can contain or amplify the potential damage resulting from uncontrolled infornmationdisclosure. While situational variables were not considered in the development of this paper’s typology of strategy combinations, they have implications both for research and managerial decision-making that can originate from the typological classification given in Table 3. The existence of situational variables highlights a feature common to all typologies or organi- 384 R. K. F. Bresser information disclosure is of little relevance? 7. How rapidly and effectively can events of uncontrolled information disclosure be counteracted? Answers to these and similar questions can help executives to apply the information provided by Table 3 situationally before adopting a specific combination of collective and competitive strategies. From this process the selection of compatible strategies should result. This paper’s discussion has concentrated on oligopolistic markets because, typically, in such markets competitors are aware of their mutual interdependence, have incomplete control of each other’s moves, and yet the success of each oligopolist’s strategic intentions depends considerably on the activities chosen by other competitors (Pennings, 1981). Obviously, within such a context, the damage resulting from an uncontrolled disclosure of sensitive information is potentially high. While the theory of oligopoly has been developed mainly for domestic, nondiversified enterprise (Stigler, 1964), the issues and ideas discussed in this paper can also be of relevance to multinational and diversified corporations. Due to the dominance of oligopolies, both multinational and diversified firms will often find themselves operating in different national or regional oligopolies. Additionally, managing a match between collective and competitive strategies may be more difficult in interindustry and international arenas than in intraindustry environments because the number of interdependent segments representing a particular coporation’s domain is larger and more complex (Bresser and Harl, 1986; Hawkins and Walter, 1981). Thus, anticipating factors such as the risk of uncontrolled information disclosure and the potential damage resulting from such disclosure may be even more important for multinational and diversified firms than for domestic oligopolists. zational phenomena. Classifications of the type developed in Table 3 are ideal types, based on generalizations derived from common knowledge and common sense (Blau and Scott, 1962; Pugh, Hickson and Hinings, 1969). However, the strategy combinations distinguished represent 42 separate hypotheses regarding the opportunities and risks organizations might encounter when utilizing competitive and collective strategies side by side. The accuracy of any particular feasibility evaluation is an empirical question open to resolution through historical research, where the mediating role of situational variables has to be included in the research design. From a managerial point of view a typology of strategy combinations with varying levels of feasibility can aid in strategic decision-making. The strategic options evaluated in Table 3 can serve as a guide to managers considering a particular strategy combination. In attempting to extrapolate easibility evaluations, decisionmakers would have to assess whether the variables leading to the feasibility ratings shown in Table 3 are of the assumed magnitude, and to what extent deviations would lead to different feasibility assessments. In addition, decision-mak ers would have to evaluate the extent to which situational variables require changes in feasibility ratings. For example, a firm intending to implement a strategy mix similar to combination 4. 3 would have to consider the following questions before deciding whether the feasibility of such a combination is high: 1. Is the risk of uncontrolled information disclosure resulting from the planned joint venture activity really at moderate levels, and how can it be contained? 2. Is there really a low degree of competitor responsiveness to product innovations within this industry? 3. Is competitive flexibility in pricing and promotional strategies maintained in spite of joint venture activity within these competitive dimensions? 4. How encompassing is the information that could get disclosed? 5. How reliable and timely is the information that competitors could obtain? 6. Does asymmetrical interdependence typical for this industry favor our firm so that REFERENCES Adams, J. S. ‘The structure and dynamics of behavior in organizational boundary roles’. In Dunette, M. (ed. ), Handbook of Industrial and Organizational Psychology, 1175-1199. Rand McNally, Chicago, 1976, pp. Matching Collective and Competitive Strategies Aldrich, H. E. Organizations and Environment, Prentice-Hall, Englewood Cliffs, NJ, 1979. Ansoff, H. I. Implanting Strategic Management, Prentice-Hall, Englewood Cliffs, NJ, 1984. Astley, W. G. and C. J. Fombrun. ‘Collective strategy: social ecology of organizational environments’, Academy of Management Review, 8, 1983a, pp. 576-587. Astley, W. G. and C. J. Fombrun. ‘Technological innovation and industrial structure: the case of telecommunications. In Lamb, R. (ed. ), Advances in Strategic Management, vol. 1, JAI Press, Greenwich, CT, 1983b, pp. 205-229. Blau, P. M. and W. R. Scott. Formal Organizations, Chandler, San Francisco, 1962. Bresser, R. K. The captives of collective strategies’, Proceedings of the American Institute for Decision Sciences, Toronto, 1984, pp. 383-385. Bresser, R. K. and J. E. Harl. ‘Collective strategy: vice or virtue? , Academ. y of Management Review, 11, 1986, pp. 408-427. Bunting, D. and J. Barbour. ‘Interlocking direct orates in large American corporations, 1896-1964’, Business History Review, 45, 1971, pp. 317-335. Business Week. ‘How Kennecott has mismanaged Carborundum’, 23 May, 1983, pp. 127-130. Emery, F. E. and E. L. Trist. ‘The causal texture of organizational environments’, Human Relations, 18, 1965, pp. 21-32. Fombrun, C. J. and W. G. Astley. ‘The telecommunian institutional cations community: overview’, Journal of Communication, 32(4), 1982, pp. 6-68. Fombrun, C. J. and W. G. Astley. ‘Beyond corporate strategy’, Journal of Business Strategy, 4(1), 1983, pp. 47-54. Hawkins, R. G. and I. Walter. ‘Planning multinational operations’. In Nystrom, P. C. and W. H. Starbuck (eds), Handbook of Organizational Design, vol. 1, Oxford University Press, New York, 1981, pp. 253-267. Khandwalla, P. N. ‘Properties of competing organizations’. In Nystrom, P. C. and W. H. Starbuck (eds), Handbook of Organizational Design, vol. 1, Oxford University Press, New York, 1981, pp. 409-432. Litwak, E. and J. Rothman. ‘Towards the theory and practice of coordination between formal organizations’. In Rosengren, W. R. and M. Lefton (eds), Organizations and Clients: Essays in the Sociology 385 of Service, Merrill, Columbus, OH, 1970, pp. 137-186. Lubatkin, M. ‘Mergers and the performance of the acquiring firms’, Academy of Management Review, 8, 1983, pp. 218-225. Olson, M. The Logic of Collective Action, Harvard University Press, Cambridge, MA, 1965. Pennings, J. M. Interlocking Directorates, Jossey-Bass, San Francisco, 1980. Pennings, J. M. ‘Strategically interdependent organizations’. In Nystrom, P. C. and W. H. Starbuck (eds), Handbook of Organizational Design, vol. 1, Oxford University Press, New York, 1981, pp. 434-455. Pfeffer, J. and C. R. Salancik. The External Control of Organizations, Harper and Rowe, New York, 1978. Pugh, D. S. , D. J. Hickson and C. R. Hinings. ‘An empirical taxonomy of structures of work organizations’, Administrative Science Quarterly, 14, 1969, pp. 115-126. Scherer, F. M. Industrial Market Structure and Economic Performance, 2nd edn, Rand McNally, Chicago, 1980. Smart, C. and I. Vertinsky, ‘Designs for crisis decision units’, Administrative Science Quarterly, 22, 1977, pp. 640-657. Starbuck, W. H. and P. C. Nystrom. ‘Designing and understanding organizations’. In Nystrom, P. C. and W. H. Starbuck (eds), Handbook of Organizational Design, vol. 1, Oxford University Press, New York, 1981, pp. ix-xxii. Stigler, G. J. A theory of oligopoly’, Journal of Political Economy, 72, 1964, pp. 44-61. Thompson, J. D. Organizations in Action, McGrawHill, New York, 1967. Thorelli, H. B. ‘Networks: between markets and hierarchies’, Strategic ManagementJouirnal,7, 1986, pp. 37-51. Venkatraman, N. and J. C. Camillus. ‘Exploring the concept of â€Å"fit† in strategic management’, Academy of Management Review, 9, 1984, pp. 513-525. Weiss, L. W. Economics and American Industry, John Wiley, New York, 1961. White, L. J. ‘How organizations use exchange media and agreements’. In Nystrom, P. C. and W. H. Starbuck (eds), Handbook of Organizational Design, vol. 2, Oxford University Press, New York, 1981, pp. 440-453.

Aci Financial Statement

ASA University Review, Vol. 6 No. 2, July–December, 2012 Cash Flow Statement Disclosures in Pharmaceutical Companies: Bangladesh Perspective Mst. Joynab Siddiqua* Mohd. Takdir Hossan* Abstract Cash flow statement is a vital part of the financial statements. Preparation of cash flow statement is required as per Companies Act 1994 and the public limited companies enlisted with stock exchange are to prepare this statement as per other statutory laws and regulations. The acceptance of International Accounting Standard- 7: Cash Flow Statement has added a new dimension to the preparation and presentation of financial statements in Bangladesh.The companies are now preparing this statement as an integral part of their financial statements. This paper examines empirically the current practices followed by sample companies in preparation of cash flow statement and concludes that the sample companies are in line (with few exceptions) with the requirements of International Accounting Stan dard (IAS)-7 or Bangladesh Accounting Standard (BAS)-7. It also proposes some suggestions for improving the presentation of the statement Key words: Cash flow statement, IAS/BAS, Listed Company, Disclosure.Introduction The purpose of a cash flow statement is to provide information on the cash flow from a company’s operating, investing and financing activities to enable the users of its financial statements to evaluate the ability of the company to generate cash and to use the historic cash flows to predict future cash flows. The cash flow information enhances the comparability of the operating performance by various companies, because it eliminates the effects that arise from the use of different accounting treatments for the same transactions and events.The use of cash flow information is gaining importance in the analysis of financial statements (Epstein 1991; Yap 1997; Jones and Widjaja 1998; Previts and Bricker 1994). Cashflow information is considered less open to manipu lation than information on earnings, because it is based on the actual receipt and payment of cash only and not on the accrual and other accounting principles. Rees (1995:75) adds that the cash flow statement can be more informative than the other statements. However, he literature on the cash flow statement indicates that there are grey areas in cash flow reporting that are open to various interpretations (Everingham and Watson 2002). The perceived simplicity of the cash flow statement may therefore create synthetic confidence in the reliability of companies’ cash flow reporting and the comparability of various companies’ cash flow information. The acceptance of IAS-7: The Cash Flow Statement has added a new dimension to the preparation and presentation of financial statements in Bangladesh.This paper is an attempt to investigate into the state of cash flow reporting by the listed Bangladeshi * Lecturers, Department of Business Administration, ASA University Banglades h 210 ASA University Review, Vol. 6 No. 2, July–December, 2012 Textiles and Clothing companies in general. The focus is not on the quality of the reporting of the companies but rather on what the reporting levels are in general. Objectives of the study The major objectives of the study are as follows: 1. to identify the current practice of cash flow statement of Pharmaceutical companies in Bangladesh. 2. o provide present cash flow statement format, structure and reporting on the basis of information provided in the annual reports of the selected listed Pharmaceutical companies in Bangladesh. Methodology of the study The study was conducted in accordance with secondary information obtained from various sources. The overview of standardization of financial reporting and the regulatory framework has been based on laws, regulation, and guideline and also on various published sources of information taken from International Accounting Standard Board (IASB) and Bangladesh Accountin g Standard 7 (BAS 7).A limited survey has also been made covering a total of 12 Pharmaceutical companies’ annual reports (2009) enlisted in Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). These are selected on the basis of convenience sampling procedure. In order to make the study more revealing it also covers some research articles, textbooks, publications and web sites of various accounting bodies. Limitations of the study 1. Applied non profitability techniques have been used. 2. Due to limitation of the extensive materials, books and previous studies in Bangladesh literature review could not be extensive. 3.This study consists of only 12 listed Pharmaceutical companies due to time and resources constraints. Literature review Cash flow statement: A historical surroundings/background Cash flow Accounting (CFA) was the main system of accounting up to beginning of the 18th century (Watanabe, Izumi: The evolution of Income Accounting in Eighteenth and Nineteent h Century Britain, Osaka University of Economics, Vol. 57, No. 5, January 2007, p. 27-30). Till then, accounting allocation and profit measurement were relatively unimportant; the profit and loss account being used to close off ledger accounts at each period end.However, with the advent of concept and practices of business continuity, periodic measure and statement of financial position began to grow. Thus the basis of cash transaction becomes foundation for the allocation based systems of accounting today. Although there has been a reasonably sustained interest in fund flow statements (based on allocated accounting data) since the beginning of the twenty century, CFA appears to have received little or no support from accountants until the early 1960s.At that time there was little concern over the use of ‘cash flow’ data in the financial analysis- cash flow being interpreted as ‘profit plus depreciation (. Winjum, J. o, 1972). In 1961 AICPA recognized the importan ce of fund statement by publishing Accounting Research Study (ARS) Cash Flow Statement Disclosures in Pharmaceutical Companies 211 NO 2â€Å"Cash flow analysis and fund statements†. Before that, accountants had prepared funds statements primarily as management report. The Accounting Principles Board (APB) responded in October 1963 by issuing APB Opinion NO. : â€Å"the statements of and application of funds†, which recommended that a statement of sources and application of funds be presented on a supplementary basis. Because of the favorable response of the business community to this pronouncement, the APB issued Opinion No. 198: â€Å"Reporting changing in Financial Position† in March 1971. This opinion required that a statement of changing financial position be presented as a basic financial statement and be covered by the auditor’s reports. In 1981 the Financial Accounting Standard Board (FASB) reconsidered fund flow issues as part of the conceptual fr amework project taken in 1976.At this time the FASB decided that the cash flow reporting issues should be considered at the standard level. Subsequent deliberation resulted in Statement of Financial Accounting Standard (SFAS) No. 95: ‘Statement of cash flows’ in Nobember1987 (Weygandt, Kieso, Kimmel 1998: 1936). Fund flow statement Vs Cash flow statement Both fund flow statement and cash flow statement serve as a fundamental parts of the financial statements. In 1961, the AICPA issued ARS No. 2, â€Å"Cash Flow Analysis and the Fund Statements† which recommended that a fund statement covered by auditor’s opinion be included in companies financial reports.According to paragraph 5 of Preface to Statement of International Accounting Standard [approved by the IASC Board in November1982 for publication in January 1983 and supersedes the preface published in January 1975 (amended March 1978)], â€Å"the term ‘financial statements’ covers balance sh eets, income statement or profit and loss accounts, statements of change in financial position, notes and other statements and explanatory materials which are identified as being part of financial statements† (IASC, 2000:32).As per paragraph 7 of framework for the Preparation and Presentation of Financial Statements (approved by IASC Board in April 1989 for publication in July 1989): â€Å"A complete set of financial statement normally includes a balance sheet, an income statements, a statements of change in financial position (which may be presented in a variety of ways, for example as a statement of cash flow or a statement of fund flows) and those notes and other statements and explanatory materials that are an integral part of the financial statements† (IASC : p. 3-44). As per paragraph 4 of the previous IAS 7 (October 1977), statements of change in financial position, the term ‘ funds’ referred to cash, cash and cash equivalents or working capital (IFA C, 1992: p. 813). Funds provided or used in operation of an enterprise should be presented in the statements of changes in financial statement separately from other sources and uses of fund.Unusual items, which are not part of ordinary activities of the enterprise, should be separately disclosed (IASC: Para 21). But many users of financial statements consider current practices of reporting fund flows as confusing because too much information is compressed in the statements of change in financial position, and because no single definition has been established (Mosich and Larsen, 1982; p. 935).In order to develop a conceptual framework for financial accounting and reporting, the FASB issued in December 1980 a discussion memorandum â€Å"reporting Fund flow, Liquidity and Financial Flexibility† which was issued for the following reasons: (1) for assessing future cash flow, and (2) current practices regarding the reporting of funds flow information are not entirely satisfactory. As a result of deliberation, FASB issued SFAS NO. 95 ‘Statements of Cash Flow’ in 1987.The statements require the inclusion of statements of Cash Flows rather than a statement of Change in Financial position when issuing a complete set of financial statements 212 ASA University Review, Vol. 6 No. 2, July–December, 2012 which was made effective for annual periods ending after July 15, 1988. The major requirements of the statements are of the following two areas: Basis of Presentation: The statement must focus on cash receipts and payments and must explain the change in cash plus cash equivalents.Classification of cash flows: Cash flows are to be classified according to operating, investing and financing activities. The basis of such classification is derived from the financial theory, which state that the enterprise derives the cash used for investing activities and settlement of outstanding financial obligation in an accounting period from internal and external s ources. Internal cash sources emanate from the net cash generated from current operation and perhaps disinvesting and depletion of cash resources at the start of the period.External cash sources come from financing activities such as borrowing and receiving cash from the sale of equity shares to existing and new shareholders (Wallace et,al). Benefits of Cash Flow Information – The information in a cash flow statement helps investors, creditors, and others to assess the following aspects of the firm’s financial position. – Such statements serve as a mechanism for predicting the ability to generate future cash flows for the investors, creditors and others. – This enables managers or management to plan coordinate and control financial operation in an effective manner. It gives an indication of the relationship between profitability and cash generating ability thus of the quality of the profit earned. – It furnishes information to the management regard ing the entities’ ability to pay dividend and meet obligations. – Analyst and other users of financial information often, formally or informally, develop models to assess and compare the present value of the future cash flow of entities. Historical cash flow statements could be useful to check the accuracy of past assessment (ACCA Text book part 2. P. 324). It is free from manipulation and is not affected by subjective judgments or by accounting policies. – Such a statement dictates situations when a business has made huge profit but has run out money or it has sustained loss but has enough cash availability. – The extent of cash generated from operational activity and external finance in order to meet capital, tax, and dividend requirements can be obtained from such statements (Lee, T. A: 1972:27-36). – It aids in the evaluation of risk, which includes both the expected variability of future return and probability of insolvency or bankruptcy ( Hen drickson, Eldom.S, 1982: 237). – Such statements reveal the capability of an enterprise to pay its short obligation as and when due to the lenders. – A cash flow statement in conjunction with a balance sheet provides information on liquidity, viability, and adaptability. The balance sheet is often used to obtain information on liquidity, but the information is rather incomplete for this purpose as the balance sheet is prepared at a particular point of time. Cash Flow Statement Disclosures in Pharmaceutical Companies 213 It may assists users of financial statements in making judgments on the amounts, timing and degree of certainty of future cash flows. – This statement provides information that is useful in checking the accuracy of past assessment of future cash flows and in examining the relationship between profitability and net cash flow and the impact of changing price (IAS 7: Para 3 & 4). – Information on cash flows classified by three groups of activ ities (Operating, investing and financing) that allow users to assess the impact of those activities on the financial position of the enterprise and the amount of its cash and cash equivalents.This information may also be to evaluate the relationship among those activities (IAS 7: Para 11). – This statement is of special importance in assessing future cash flows, quality of income operating capability, financial flexibly and liquidity, and information on financing and investing activities. Using cash flows from operating activities from the cash flow statements, different ratios such as liquidity, ratio, solvency ratio, and profitability ratios can also be calculated to evaluate an enterprise’s liquidity, solvency, and profitability. Aziz uddin and Bala, 2001: p. 14) Overview of Cash flow statement The cash flow statement explains the changes that have occurred in the company’s cash and cash equivalents during the year by classifying the cash flows in its operat ing, investing and financing activities. The statement must focus on cash receipts and payments and must explain the change in cash plus cash equivalents. The classification is done in a way that is most appropriate to the company’s business.The following are the definitions of the components of the cash flow statement: Cash: cash on hand and demand deposits Cash equivalents: short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Operating activities: the principal revenue-producing activities of the enterprise and other activities that are not investing or financing activities Investing activities: the acquisition and disposal of long-term assets and other investments not included in cash equivalents.Financing activities: activities that result in changes in the size and composition of the equity capital and borrowings of the enterprise (Epstein, p. 93). Objective and Scope of IAS 7 Information about the cash flow of an enterprise is useful in providing users of financial statements with a basis to assess the ability of the enterprise to generate cash and cash equivalents and the needs of the enterprise to utilize those cash flows. The economic decision taken by users requires an evaluation of the ability of an enterprise to generate cash and cash equivalents and timing and certainty of their generation.The objective of IAS 7 is to require the provision of information about the historical change in cash and cash equivalents of an enterprise by means of a cash flow statement that classifies cash flows during the period from operating, investing and financing activities. An enterprise should prepare a cash flow statement in accordance with the requirements of IAS 7 and should present it as an integral part of its financial statements for each period for which financial statements are prepared.Users of an enterprise’s financial statements are interest ed in how the enterprise generates and uses cash and cash equivalents. This is the case regardless of the nature of the enterprise activities and irrespective of whether cash can be viewed 214 ASA University Review, Vol. 6 No. 2, July–December, 2012 as the product of the enterprise, as may be the case with a financial institution. Enterprises need cash for the same reason however different their principal revenue- producing activities might be.They need cash to conduct their operations, to pay their obligations and to provide return to the investors. Accordingly this standard requires all enterprises to present a cash flow (Para 1 & 3). Presentation of Cash flow statement under IAS 7 Cash and cash equivalent: The definition of cash and cash equivalent are central to the preparation and interpretation of cash flow statements. Cash consists of cash in hand and demand deposits, coins and notes of an organization, etc. In our country deposits in postal accounts may be termed as c ash (Cooper and Ijiri, 1984: 88; Ghosh, 2001).Cash equivalents are short-term, highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of change in value. According to the definitions of paragraph 6 of IAS 7 cash comprises cash in hand and demand deposits; usually ‘cash on hand’ includes currency, notes, and coin in the cash box of the enterprise. It also includes prize bond, negotiable money orders, postal orders, and under posited checks, bank drafts or pay- order.Demand deposits refer to deposits in checking accounts in banks and other financial institutions that may be withdrawn without notice usually subject to deduction of outstanding check. Thus cash equivalents – 1. are short-term investments but the ‘term’ ‘short’ not clearly specified, although a period of three months and less is suggested to be taken as short term period. 2. are highly liquid investments. Here ‘liquid’ means having in a situation where cash equivalents are available in sufficient amount to meet obligation of payments. . are investments that are both: (a) readily convertible, to known amounts of cash and (b) subject to an insignificant risk of change in value. According to SFAC No. 95, the risk categorically refers to risk of change in interest rate. The short-term investments are so near their maturity that they represent insignificant risk of changes in interest rate. Examples include treasury bills, commercial papers, and money market funds purchased with cash that is in excess of immediate needs.However, although by definition, cash equivalents refer to short term highly liquid investments, they are usually held for the purpose of meeting short term cash commitments rather than for other purpose. For an investment to qualify as a cash equivalent it must be readily convertible to a known amount of cash and be subject to insignificant risk of change in value. Therefore an investment normally qualifies as a cash equivalent only when it has a short maturity of, say, three months and less from the date of acquisition. Equity nvestments are excluded from the cash equivalents unless they are, in substance, cash equivalents, for example in the case of preferred share acquired within a short period of their maturity and with a specified redemption date (Para 7). Cash Flow Statement Disclosures in Pharmaceutical Companies 215 Preparation of Cash flow statements IAS 7 requires cash flows to be classified into operating, investing, and financing activities. Example of cash flows by category Operating Activities Inflows Receipts from customers Outflows Payments to suppliersAdvance deposits from customers Wages and salaries to employees Income tax refunds Income tax payments Interest received on customers’ notes or Other tax payments accounts Dividends and interest received from Interest paid on bank debt or bonds outstanding and inve stments and included in determining net included in determining net income income Investing Activities Cash received from sale of capital assets Payments for purchase of capital assets Cash from sale of debt or equity investments Cash flows capitalized as intangible assets, such as:  · development costs  · start-up costs  · capitalized interest  · exploration Costs Collection of principal on loans to others Purchase of debt or equity securities of others Interest and dividends received on investments Loans extended to others and not included in determining net income Financing Activities Net proceed of issuing debt or equity securities Payment of principal on bonds or bank loans Cash proceeds received from bank loans Purchase of the entity’s own shares Interest paid on bank debt or bonds outstanding and not included in determining net income Dividends paid to shareholders Variations in Reporting activities for Cash flows A. Operating or Financing activities Transactio ns with different categories included in cash flows are classified in a different manner. According to IAS 7, Para 12, â€Å"A single transaction may include cash flows that are classified differently.For example, when the cash repayment of a loan includes both interest and capital the interest element may be classified as operating activities and the capital amount is classified as financing activities†. B. Operating or investing and financing activities Some cash flows may be classified as arising from any activities such as ‘interest’, ‘dividend’ ‘income tax’. The detailed provisions of these types are as follows. 216 ASA University Review, Vol. 6 No. 2, July–December, 2012 Interest: a. For a financial institution, interest paid and interest received are usually classified as operating cash flows (para 33). b. For other enterprise, interest paid and interest received may be classified as operating cash flows because they enter into the determination of net profit or loss.Alternatively, interest paid may be classified as financing cash flows, because they are costs of obtaining financial resources. Interest received may be classified as investing cash flows, because they are returns on investments (para 33). Dividend: a. For a financial institution, dividends received are usually classified as operating cash flow (Para 33). b. For other enterprise, dividends received may be classified as operating cash flows because they enter into the determination of net profit or loss. Alternatively dividend received may be classified as investing cash flows, because they are returns on investments (para 33). c. Dividend paid may be classified as financing cash flows, because they are costs of obtaining financial resources.Alternatively dividend paid may be classified as component of cash flows from operating activities in order to assist users to determine the ability of an enterprise to pay dividend out of operating c ash flows (para 34). Income tax: a. Taxes on income arise on a transaction that gives to the cash flows that are classified as operating, investing, and financing activities in cash flow statement. While tax expense may be readily identifiable with investing or financing activities, the related tax cash flows are often impracticable to identify and may arise in a different period from the cash flows of the underlying transactions. Therefore taxes paid are usually classified as cash flows from operating activities.However, often it is practicable to identify the tax cash flow within individual transaction that gives rise to cash flows that are classified as investing or financing activity as appropriate. When tax cash flows are allocated over more than one class of activity, the total amount of taxes paid is disclosed (Para 36). In the light of SFAS 95, â€Å"Transaction that enter into the determination of net income† are defined as operating activities and hence, interest re ceived or paid, dividend received and taxes on income are rigidly treated to arise from operating activities. Dividend to stakeholders are treated as cash outflows classified as financing activities (Keiso and Weygandt, 1998: 1275-76) Cash flow statement Practices in BangladeshRegulatory Framework, in the eyes of the Companies Act 1994 (Act no. 18 of 1994): According to Section 183 of the Companies’ Act 1994 (which came into effect from 1 January 1995), a company is required to present balance sheet, profit and loss account (income and expenditure account, in case of non profit companies). Under section 185, the balance sheet and the income statement have to be prepared according to the forms set out in Part –1 and Part –2 of Schedule XI respectively under which information on consecutive two years (concerned year and Cash Flow Statement Disclosures in Pharmaceutical Companies 217 preceding year) are to be provided.However according to note (g) of the general in struction for preparation of balance sheet (given in part –1 of schedule XI after the horizontal format of the balance sheet), â€Å"a statement of change in financial position shall be included as an integral part of the financial statements, and shall be presented for each period for which the profit and loss account is prepared†. However no specific format of cash flow statement has been prescribed in Companies Act 1994. In the light of the Security and Exchange Rule 1987 (S. R. O No. 237-l/87 dated on 28 September 1987): Under the provision of rule 12 (1) of the Securities and Exchanges Rules (SER) 1987(amended by the section notification No.SEC/ Section 7/SER/03/132 dated 22 october1997 published in the official gazette on 29 December 1997), the annual report to be furnished by an issuer of listed security shall include â€Å"a balance sheet, profit and loss account, cash flow statement and notes to the accounts collectively hereinafter referred to as the financi al statement’. In the part III of the Schedule of the SER 1987, issues relating to interest paid on short-term borrowing, interest and dividend received income taxes are clearly guidelined. For example, interest paid on short-term borrowing shall be a cash outflow under operating activities; ‘interest and dividend received’ shall be a cash inflow under investing activities. And ‘interest paid on long term borrowing’ and ‘dividend paid’ shall be a cash outflow under financing activities.Under paragraph 35-36, ‘taxes on income’ should be treated as operating cash outflow unless they can be identified in financing and investing activities. Findings of the study To know the extent of cash flows statement reporting practices by Pharmaceutical companies, a survey has been conducted covering twelve annual reports (2009) (For detailed the name of the companies see Appendix-1). The major findings of the study are given below in terms of general variations in reporting and voluntary disclosure. General findings It includes the current format and structure of cash flow statement and the extent of compliance of IAS-7, followed by sample Pharmaceutical Companies in Bangladesh. All the sample companies prepare cash flow statement as required by IAS-7/BAS 7 adopted by the Institute of Chartered Accountant of Bangladesh and present it as an integral part of the financial statements. Notes to cash flow statement have been presented as part of the financial statements in case of all the sample companies.  · The sample companies prepare cash flow statement in vertical form and shows figure of cash flows of the current year and the previous year.  · All the sample companies’ cash flow statement contains a classification of operational, investing, and financing activities.  · The sample companies did not illustrate the policy dopted in determining the formulation of cash and cash equivalents although this is r equired by paragraph 36 of IAS 7. 218 ASA University Review, Vol. 6 No. 2, July–December, 2012 Variation in Reporting Another objective of the survey was to determine which alternatives, permitted by IAS-7, are used most in practice by Bangladeshi pharmaceutical companies. It is found that there are not many differences between companies in their reporting of cash flow information. This is expected because the preparation of cash flow statement does not allow for many choices, differences of interpretation or different accounting treatments. The results are set out in table 1.Table-1 Variations in reporting [Cash flow statement (CFS)] Factors 1 Notes to CFS Options Separately, following the CFS Part of the notes to the financial statements Incorporated in the CFS Total Direct method Indirect method Total Operating activities or no interest Financing Investing activities Total Financing activities or no dividends Operating activities Investing activities Total Part of accounti ng policy note Nothing disclosed Total Operating activities or no tax Financing activities Investing activities Total Number of companies 0 12 0 12 12 0 12 12 0 0 12 12 0 0 12 12 0 12 12 0 0 12 2 Operating activities 3 Interest received and Interest paid 4 Dividend received and Dividend paid 5 Definition of cash and cash equivalents 6 Income tax Notes to table 1  · Refer to point 2 of Table 1.According to IAS-7 and SEC Rule 1987, the enterprises are encouraged to report cash flows from operating activities using the direct method. The direct method provides information which may be useful in estimating future cash flows which is not available under the indirect method. All the sample companies followed the direct method in reporting operating cash flows. One company (Pharmaceutical Mithun Knitting & Dyeing Ltd. ) discloses cash flows from operating activities under indirect method in notes of financial statements as additional information. Cash Flow Statement Disclosures in Pharma ceutical Companies  ·  · 219 Refer to points 3 & 4 of Table 1.All the companies studied have shown ‘interest received and paid’ under operating activities and ‘interest paid on long term borrowing’ and ‘dividend paid’ under financing activities. Refer to points 5 & 6 of Table 1. All the companies studied have shown â€Å"definition of cash and cash equivalents† in the notes of accounting policy and â€Å"income tax† under operating activities. Voluntary disclosure The survey also included an examination of any additional information that is disclosed regarding the company’s cash flow which is not required by IAS-7, but which may be helpful to the user. For example, separate disclosure of cash flows increases operating capacity and cash flows that maintain operating capacity, disclosure of segmental cash flows, cash flow per share etc.The survey found no company to disclose such additional voluntary information in its ca sh flow statement. Conclusion and Recommendation A materially misstated cash flow statement, whether it is in terms of incorrect classification in the categories or numerical accuracy, can be misleading to the user and can lead to wrong decisions taken by the users of the statement. The survey has revealed that although sample companies prepare cash flow statement according to International Accounting Standard-7 (BAS-7), there is also a degree of non-compliance. It is, however, found that there are not many differences between companies in their reporting of cash flow information.This is expected because the preparation of cash flow statement does not allow for many choices, differences of interpretation or different accounting treatments. To make cash flow statement more informative and useful for users, the companies should disclose additional voluntary information such as cash flow per share in their cash flow statements. Items consisting of cash flows from operating, investing a nd financing activities should also be clarified in the notes of the financial statements. Due to the limited scope of the present study, a large number of research issues have not been attempted but are identified in the course of the study.Disclosure practices of additional items other than operating, investing and financing activities, disclosure practices differences between listed and unlisted companies, disclosure practices differences between financial and other institutions are some such potential issues for future research. 220 ASA University Review, Vol. 6 No. 2, July–December, 2012 References Annual Reports of Sample Pharmaceutical Companies Listed in Dhaka Stock Exchange and Chittagong Stock Exchange 2009. Aziz Uddin, A. B. M and Bala. , S. K. ( 2001), â€Å"Cash Flow Reporting in Bangladesh†, The Cost & Management, Nov- Dec. ICMAB, p. 13. FASB Discussion Memorandum (1980), Reporting Funds Flow, Liquidity and Financial Flexibility, FASB, Stanford. Thomas H. Beechy. Joan E. D. Conrod, Intermediate Accounting, second Edition, Chpter 5, Exhibit 5-1 pp. 91 Ghosh, Santi N. (2001),â€Å"Workshop Material on IAS # 7 : Cash Flow Statements† compiled under the Institute of Chartered Accountants of Bangladesh (ICAB)Project, Development of Accounting and Auditing Standards in Bangladesh, The World Bank. Government of Bangladesh (GOB) (1994), The Companies Act 1994 (Act No. 18 of 1994). Gup, B. E. & Samson, W. D. 1993. An analysis of patterns from the statement of cash flows. Financial Practice & Education, 3(2):73-79. Hendrickson, Eldom. S(1982), Accounting Theory, Richard D. Irwin, Inc. , Illinois, p. 236. Hertenstein, J. & McKinnon, S. 1997. Solving the puzzle of the cash flow statement. Business Horizons, 40(1):69-76.International Accounting Standards Committee (IASC) (2000), International Accounting Standards 2000 International Accounting Standards Committee, London, â€Å"International Accounting Standard IAS 7 (revised 1992): Cash Flow Statements† in pp. 139165. International Federation of Accounting (IFAC) (1992), IFAC Handbook 1992: Technical Pronouncements (New York: IFAC). â€Å"IAS 7 (October 1977): Statement of Changes in Financial Position† in pp. 812- 816. Khan, M. H. & Akter, M. S. & Ghosh, S. K (2005), â€Å"Cash Flow Statement Disclosures: A Study of Banking Companies in Bangladesh†. Available at www. pcte. edu. in/site/OJMR/Finance/cashflow. pdf Keiso, Donald, E. and Jerry. J.Weygandt (1998), Intermediate Accounting, John Wiley & Sons, Inc. New York, 9th Edition, pp. 1275-76. Lee, T. A. 1982. Cash flow accounting and the allocation problem. Journal of Business Finance & Accounting, 9(3):341-352. Lee, T. A (1972), â€Å"A Case for Cash Flow Reporting†, Journal of Business Finance, Vol. 4, No. 2, pp. 27-36 as quoted in Studies of Accounting Theory, Steyn, B. W. & Hamman, W. D. 2003. Cash flow reporting: are listed companies complying with AC 118? Meditari, 11:167-180. Weyg andt, Kieso, Kimmel, Accounting Principles, 9th edition, John, Wilely and Sons, Inc, pp. 732-733 Wallace, R. S. O. and Choudhury, M. S. I. And Pendelbary, M. 1997), â€Å"Cash Flow Statements: An International Comparison of Regulatory Positions†, The International Journal of Accounting, Vol. 32, No, 1, pp. 1-22 Cash Flow Statement Disclosures in Pharmaceutical Companies 221 Appendix-1 List of the twelve Pharmaceutical companies studied. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. GlaxcoSmithKline Bangladesh Limited (2009) The IBN SINA Pharmaceutical Industry Ltd. (2009) BEXIMCO PHARMACEUTICAL LTD. (2009) ORION INFUSION LTD. (2009) ACI Formulation Limited (2009) Ambee Pharmaceutical Limited (2009) Square Pharmaceutical Ltd. (2009) Libra Infusions Limited (2009) BEACOM Pharmaceuticals Limited (2009) Rahman Chemicals Limited (2009) Renata Limited (2009) Therapeutics (Bangladesh) Limited (2009)

Human Trafficking And The United States - 2816 Words

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