It is a part of the external evaluation when executing a strategic examination or doing market research, and gives a synopsis of the different macro environmental factors that the business has to take into consideration. This research of the exterior environment will lead to the recognition of a number of opportunities and hazards.
7. 1 PESTLE Analysis of Royal KPN
The Netherlands' opening amount of its financial, commercial laws and regulations and investment insurance plan is well-known on earth. The Netherlands' overall economy is very internationalization with minimum interference from the federal government, and its own trade investment coverage is the most available one in the world. The government offers many varieties of procedures to encourage international investment, and support foreign companies to enter into the Netherlands. In addition, the Netherlands has well-done taxation system and commercial environment. The Netherlands' low duty rate and wide-spread tax earnings treaty network in Europe make its taxation environment beneficial and attractive (L Zeng 2008).
The new Dutch telecommunications regime is relatively liberal, without barriers to entrance, no line-of-business limitations and relatively few settings on prices. After deregulation, a sizable volume of companies have been around in the local market to provide telecommunication services and spend money on facilities.
In addition, the European union telecommunications regulators never reduce the rules for the telecom industry. The policies about cut negotiation cost and roaming charges are regularly published. The Netherlands, like most Business for Economic Co-operation and Development (OECD) countries, is facing a double concern: to complete the liberalization of the telecommunications market, and to prepare for the next generation regulatory regime when confronted with convergence.
The Netherlands is named the gate of the European countries because of its predominant geographical position. It has a flourishing and wide open economic which depends heavily on international trade. It is one of the key foreign investment countries with beneficial and attractive business environment on the planet. The Netherland is also playing an important part in the financial and trading development, and having a large volume of customers in the European union market. By the end of 2011, the GDP of the Netherlands is currently rated 16th on the planet, and it is the eighth in imports of goods and services from the United States. Moreover, holland is rolling out communication infrastructure and advanced transporting network, with two biggest jacks (Rotterdam and Amsterdam) and the 3rd largest airport terminal (Schiphol) in the European countries Union. HOLLAND is also famous all around the world by its leading technologies and management experience in many areas of industries, including the telecom and digital industry. In short, the Netherlands' wide open economy is developing mainly depends upon its good physical position, the developed travelling system, the advanced communication infrastructure and the developed logistic service, as well as the powerful administration support and attractive commercial environment, make holland the most advantageous economical environment for conducting business among all the Europe.
But lately, the whole overall economy in European countries is really threatened by the Western sovereign-debt crisis. In lots of experts' view, economic downturn in the Euro zone will still keep for years which also afflicted the telecom industry. The constantly depraved macro overall economy make an seemingly reduction in revenues of the European telecom companies, business lead to the income declined, liquidity squeeze and market demand fragile.
The Netherlands has a modern and international modern culture, the individuals living here has a superior quality of life. The Netherlands has an extended and colorful background; its special public culture is so wide open and become very well suited for international people. During several generations, holland has accepted substantial immigrants from all around the globe. Because of this, the colorful public record and international cultural environment make it favorable for the shareholders to be a part of varies of business activities. For the time being, the favoring commercial insurance plan and stable political environment provide similar development opportunities for both local and foreign companies, which will make the Netherlands' business environment more diversification.
In addition, holland has high quality labor force. A lot of the Dutch citizens have received high education or job training, and professional one or two foreign languages. Moreover, they are trained with the complex skills that are needed in the high-tech economy.
The Netherlands has a little but advanced telecom market. The broadband, Internet and mobile penetrations are all far prior to the EU average. HOLLAND has consistently rated among the top rated telecommunications markets within Western European countries. Broadband services will give greatest opportunities for expansion, while predetermined lines are expected to keep to decrease. Mobile broadband cable connections in holland have risen to 882, 000 in the middle of 2010 and Mobile penetration come to about 130% in early on 2010. Despite the recessionary conditions such like overall economy slowdown and debt problems in Euro zone, Dutch subscribers show that they will continue spending, especially because of their desire to have the latest technologies.
The Netherlands gets the leading communication systems and IT technologies in the Europe, which mainly benefits from the federal government support and technological development. Now consumers in the Netherlands can like a variety of communication methods and an elevated range of services, such as network and cellular network procedure. The industry has progressed the past prior limits that confined services to voice related ones, making the computer and founded IT and telecom systems become the area of the normal life. As a result, it is now better to do Internet trading among companies in several countries due to the speedy development of communication and IT solutions. Additionally, the Netherlands' perfect commercial regulations and well-operating consumer market have provided a good business environment for the telecom companies to develop their technologies and make broader distribution channels.
Besides, holland is one of the world's most wired countries with a state-of-the-art, completely fiber-optic infrastructure, the major bandwidth and Internet Exchange on the Western european continent, and a pro-technology federal government that is focused on continued research and development. Telecom providers in holland offer a wide range of services and are enthusiastic to create new technologies. The Netherland's telecom market has one of the very most advanced infrastructures in European countries, which providing a solid foundation for emerging bundled services offerings.
The legal institution of the Netherlands is also highly praised because of its business lawful restrictions which take laws letter as main body and helped with legal basic principle ideas (L Zeng 2008). The Separate Post and Telecommunications Specialist of holland (OPTA) promote competition, encourage technology and protect consumers in telecom marketplaces. OPTA also issues licenses for telecom operators, sets interconnection prices for providers and end-users', and solve disputes between telecom providers. Radio communications Agency Netherlands is accountable for obtaining and allocating frequency space and monitoring its use. Dutch Marketing Authority upholds the guidelines which are designed in the Dutch Marketing Act as well as in the regulations predicated on this act including the Media Decree.
1) Adoption of digital communications in a variety of fields;
2) Growth of OPTC's power in rule making;
3) Improvement of consumer safeguard, anti-spam regulations, request of competition regulation;
4) Single framework applies to all types of electronic communication sites including cable television networks. The modified Act inserted into force on, may 19, 2004.
In holland, very high densities of both society and economic activities have resulted in very intense stresses on the country's environment. In addition to levying environmental taxes, governmental administrations, like Drinking water Boards, have the possibility to charge fees. Companies and homes are charged directly for a few polluting activities, for occasion the release of waste drinking water to the sewers and the production of waste products (Statistics Netherlands, 2012). For companies, these fees would be accounted as elements of environmental costs which are quite high every year.
Care for the environment is an important part of KPN's business functions. KPN is particular concentrate on liable energy use, because the telecommunication and ICT sector consumes a great deal of energy and ICT can help reduce its customers' energy usage. They aim to continuously improve their environmental performance and also to become an example in this sector, as well as to observe relevant rules and legislation. Furthermore, KPN is focused on proper management of cables, reduction of throw away, and other issues that contribute to make a much better environment.
In holland and Germany, KPN has a qualified environmental management system (ISO14001). This international standard is utilized to build up environmental policy, to manage environmental aspects and also to improve the environmental performance of a business.
7. 2 PESTLE research of Deutsche Telekom
Germany has a very stable government which gives a safe environment for business. The efficient regulatory routine and open-market procedures treat the overseas business investments quite similar as German buyers. Its political system is available to international business and strives to find ways in which to catch the attention of new businesses and buyers, such as recently lowering its commercial profit fees.
The main task for the government of Germany is working with your debt problems in the Eurozone, which possessed a significant negative impact on public funds and economic development. The bailout of fiscally weak Europe is unpopular among German taxpayers which also symbolizes a politics risk. Despite there is a challenging external financial environment frustrated by the European credit debt crisis, Germany continues to be one of the world's most vibrant and powerful economies. The foundations for long-term competitiveness and stable economy progress have been deeply rooted in the high quality of the judicial routine, which maintains a solid rule of rules.
Germany is the world's fourth-largest market by nominal GDP and fifth by GDP (PPP) in 2011. Germany is also the major national market in Europe, accounting for about one-fifth of the gross home creation (GDP) of europe (EU). Germany is the world's third major exporter with $1. 408 trillion exported in 2011 (Eurozone countries are included). Germany is one of the world's high-income countries and the most significant European trade and investment partner of the United States. Although its economic and commercial policies are increasingly determined within the EU, Germany plays a key role in influencing EU plans (Paul Belkin 2009).
Germany's economy has been on a lesser growth rate lately, and unemployment has also risen gradually. Especially strike by the international financial meltdown, which resulted in a steep 5% decline in the GDP progress of Germany in '09 2009. The turmoil also lifted questions about the long-term vitality and durability of the German economy. After resuming in 2010 2010, economy development in Germany slowed down again in 2011 therefore of your debt crisis in the Eurozone and the specter of recession. With declining economical growth and increasing expenditures on cultural protections, Germany is facing significant budgetary issues and resource constraints.
The telecom industry takes on an important area of the Germany's overall economy and has important proper value for the economy's development. Therefore the aim of market liberalization in Germany includes not only the huge benefits to consumers of better prices, choice, quality of service and widened product range, but also overall economical development. The government recognizes that investment in communications infrastructure, services and broadband will mainly come from the private sector. And pro-competitive regulatory reform is definitely the best approach to promote the private sector investment and invention. Economical slowdown in Germany makes these broader goals more pressing and important.
Germany has the largest populace in europe with 81. 8 inhabitants in January, 2011. The profitable German economy draws in an incredible number of immigrants from round the world as it's the third greatest country in conditions of immigration. Germany has today's and open society; many people are well-educated and revel in a high standard of living. Germany is also famous for its well cultural security system which due mainly to their flourishing current economic climate. Besides, there will be more than 40 million workforces in Germany which which makes it the greatest pool of labor in the EU. Germany's world-class education system means that the students will receive the highest-standard education. A lot more than 80 percent of the German labor force has received formal professional training or managed an academic level. Germany is also the major and most mature mobile market in American Europe, with average penetration in the broadband and mobile areas. Its high degrees of literacy, urbanization and strong financial performance make Germany a welcoming telecommunications market.
In Germany, the mobile penetration reached more than 135% by early 2011. Regulatory pressure on words roaming and termination rates will encourage operators to help expand promote their development of data applications to improve income. In 2011, Deutsche Telekom found a growth in its German customer basic and data use, with an increase of than one million new mobile agreement customers, although there is a historical low in the number of line losses in its resolved network of 21 per cent during the time.
New solutions and creativity are significant to keep Germany's international competitive ability. German companies are one of the global market leaders in the introduction of new technologies. Based on high quality and technology, the "Manufactured in Germany" brand is a guaranty of quality. Furthermore, Germany is the main location for research in Europe. Germany's unique medical traditions and great variety of research areas offer ideal conditions. Research-intensive products and services contribute 45 percent to the creation of value in Germany, more than in any other industrialized country. As one of the world's leading exporters, Germany plainly understands that science and technology lay the foundation for its future position on the globe markets. They are the key to competitiveness and sustainable financial growth.
The German Information Communication Technology (ICT) industry is the largest in Europe and fourth most significant internationally. The sector takes on a substantial role in promoting successful R&D results in Germany: over 80 percent of innovations in key establishments are reliant on ICT technologies. A number of ICT industry sections display significantly positive development rates; the most important being the outsourcing services, mobile data services, and video gaming market sectors. High levels of general population sector investment in broadband and a substantial range of private sector improvements made possible by healthy R&D incentives levels all contribute to making a flourishing and energetic investment environment.
Germany has a favorable legal environment which is world-famous because of its stability and high transparency. The Germany's effective enforcement system and sturdy codifications provide investors with a solid legal platform to enforce their rights. Its commercial laws is strongly well known, because all property rights are well shielded and the judiciary is highly professional. Because of this, Germany is normally considered to have a secure environment for international investment and business.
The German Telecommunication Act was publicized in 1996. The primary content aren't only adapt for the introduction of German telecom, but also show the EU commission's requirements to establish Western european unified telecom market and the development planning. This is still the essential rules of telecom legislation in Germany. The goal of this Take action is, through technology-neutral regulation, to promote competition and productive infrastructures in telecommunications and to guarantee appropriate and enough services throughout the Government Republic of Germany.
(1) Telecommunications rules shall be under federal authority.
(2) The aims of rules shall be-
To safeguard individual, especially consumer, hobbies in telecommunications also to safe shield telecommunications personal privacy;
To secure fair competition also to promote telecommunications markets with sustainable competition in services and sites and in associated facilities and services, in rural areas as well;
To encourage successful investment in infrastructure also to promote development;
To promote development of the internal market of the European Union;
To ensure provision throughout the Federal government Republic of Germany of basic telecommunications services (universal services) at affordable prices;
To promote telecommunications services in public areas institutions
To secure efficient and interference-free use of frequencies, accounts also being taken of broadcasting passions;
To secure efficient use of numbering resources;
To protect general population safety interests.
In Germany, environmental protection continues to be a major general public concern and a high policy priority. This is mainly due to pressures on the environment resulting from its high society density, degree of industrialisation and strong dependence on fossil fuels. Changes in the local climate and atmosphere system will be the greatest political and environmental problems in the 21st century. In the international area, Germany is a forerunner in environment and energy procedures and try to achieve ambitious emission-reduction goals, while local climate change which mainly induced by individuals activities is extensive considered all over the world.
The ICT industry plays a key role when it comes to curbing climate change. Deutsche Telekom mentioned this reality at the United Nations' COP 17 environment protection conference, which was placed in December 2011 in Durban, emphasizing the need of arranging specific and obligatory targets. Like a forerunner, Deutsche Telekom is growing the products and services in line with these criteria, rendering it possible for the clients to engage in green intake with their progressive ICT services and solutions. The company is also making an investment heavily in the introduction of a environmental and climate friendly network infrastructure. Moreover, Deutsche Telekom takes a lot of steps to reduce the influences which their own business activities have on the local climate and environment. Reducing the Group's CO2 emissions in Germany is a key point of the weather coverage strategy.
PESTLE evaluation of China Telecom
China telecom industry began from state-run business, it was immediately influenced by nationwide economy insurance policy, macro development environment and countrywide control policy. Due to the monopoly of telecom market in China (Yang Yubinge. a. 2011), the telecom companies have strongly connection with authorities and supervisory establishment.
Since reform and opening-up, the telecommunication industry of China has been developed at full swiftness, its achievements having seduced people's attention on the planet (Wang 2000). The machine reform of the Chinese telecommunication industry is being deepened constantly in recent years as well. The government promised open up the telecom market when China became a member of WTO in 2001. Then scores of overseas companies requested the add-value businesses in China and committed to the domestic provider. But you can find no one pertains to start the network specialist company in China as a result of high development cost and insurance policy risk.
In order to build up the telecom industry, their state created and promulgated some policies such as "2006-2020 National informatization development strategy", "The information industry 115 planning" and "Telecom industry adapt and revitalization plan 2009-2011". "The info industry 115 planning" proved that the telecom specialist should enhance the interaction with making industry. "Telecom industry modify and revitalization plan 2009-2011"emphasized that the industry's self-employed innovation of information technology was the main strategy aim.
With the improvement of control insurance policy and sustaining reform, there will be an increasing variety of abroad provider interact the Chinese telecom market. The telecom professional in China will be confronted with a free of charge and pro-competition environment, which indicates that more incentive competition should come into being.
The People's Republic of China (PRC) is the world's second largest current economic climate by normal GDP and by purchasing electricity parity after the United States. It is the world's fastest-growing major economy, with progress rates averaging 10% over the past 30 years. China is also the major exporter and second largest importer of goods in the world. On a per capita income basis, China rated 90th by nominal GDP and 91st by GDP (PPP) in 2011, according to the International Monetary Account (IMF). The provinces in the coastal parts of china tend to be more industrialized, while areas in the hinterland are less developed. As China's economic importance is continuing to grow, so has attention to the composition and health of the market.
After the reform and opening-up insurance policy in China, the nationwide economy is expanding fast and steady, the buyer power of world is also expending fast. This is also promoting the development of telecom industry. The Chinese telecommunication sector's development rate was about 20% between 1997 and 2002. China fixed-line and mobile operators have invested typically 25 billion US dollars on network infrastructure within the last years, which will be more than all european carriers combined. As a result, with 13 billion citizens, China is the owner of the world's largest fixed-line and mobile network in terms of both network capacity and range of subscribers. By March 2012, there were a complete of 284. 3 million fixed-line telephone clients and 1. 01 billion mobile phone members in China.
As the people's living standard continuing to improve and communication utilization capacity is continuing to grow, there are increasingly more consumers prefer to enjoy a variety of telecommunications services. This requires telecom companies' network equipment continual upgrading (ZhangLei 2007); in the mean time develop the extensive potential home based business to be excited to meet new consumer requirements, which gives China's telecommunications equipment market tremendous demand probable.
As a state-run telecom operator shouldering the heavy responsibilities of countrywide information infrastructure construction and modern telecommunications services, China Telecom has always been adhered to the trust of "All-round creativity, seeking real truth through pragmatic practice, taking human being as the foundation and jointly creating value". China Telecom is repaying the world, serving the client, caring for the staff, and repaying the shareholders while keeping the business steadily developed and produced under the concept of methodical development and good ever-changing environment. China Telecom completed its cultural responsibility in all the operation processes while providing services and products, and makes its great efforts in knowing the coordination and harmonious unity between the corporate development and communal development, and environment safety while adding to the social progress.
In brief, China is still owned by the producing countries; the penetration rate of the telecommunications business is still lower (Liu 2007). In the foreseeable future, the telecommunications market will continue to expand the size.
In the facet of technical, China has launched its local 3G mobile technology standard TD-SCDMA, that may challenge CDMA2000 and W-CDMA. The development and utilization of new technology like "clouding" and "IPv6" will promote the internetwork penetrating into the real current economic climate and traditional industry. Computer, tv and telephone will be fused into one home based business. (Wang Xiaochu 2010)
"Survey on China's Telecom Industry in 2010-2012" predicts that in 2011-2012, China will accelerate the combo of telecom network, broadcast network and Internet, and promote interoperability, resource sharing, and the introduction of information and social market sectors, by using of related procedures. This interoperability isn't just a chance but also a challenge for the telecom industry.
Since the conclusion of recombination and the issue of 3G licenses, China's telecom industry has set up a three-way have difficulties, and your competition of the telecom industry has entered a new stage of development. The year of 2009 became the start of this stage. The development of the telecom industry up to now is witnessed to be influenced by investment. Since 2010, China's investment in 3G will be reduced steadily, and the telecom industry will go into a "post-3G" period. Additionally, you will see a slowdown of investment-led growth, and the introduction of the telecom industry will be driven mainly by consumption.
The Talk about Council is the government body responsible for all legislative issues in China, including those regarding telecommunications. Rules and administrative measures issued in 2000 and 2002 lay out the ideas and requirements for telecom licensing, interconnection, service specifications and charges, network building, telecom security, and fines for violating the restrictions. However, many rules are unclear, at the mercy of interpretation, and sometimes overlooked by provincial specialists or the providers themselves.
The legal system of telecom industry in China is not perfect now. The only law now is the "telecommunication rules of the People's Republic of China" which promulgated in 2000. As well as the "Telecommunication Take action" continues to be on the drafting process, but neither its details nor a timetable for its enactment has been made general public. Telecom industry will go through from full monopoly to full competition or effective competition. China telecom industry is on the period of changeover - limited competition period. It really is expected the telecom industry in China will have a better development situation following the Telecommunication Act is finished.
China is the world's current largest emitter of carbon dioxide but not the cumulative largest. In China, speedy industrialization, population progress, and lax environmental oversight have induced many environmental issues and large-scale pollution. Nowadays, China federal has recognized that the safeguard of the environment is fairly urgent. Because of this, the government has submit "energy saving and emission reduction" inside the Outline of the 11th Five-year Anticipate Country wide Economic and Social Development of the People's Republic of China. Meanwhile, the government in addition has vigorously marketed the low-carbon market.
To respond to the government calls on environmental safety, China Telecom always focused on set up a "green operation" enterprise image, and actively developing promote the complete society of energy saving and emission reduction of "green products" (HimfrTian, 2012). China Telecom began its work from three aspects - inexperienced operation, green procurement and green products. Firstly, China Telecom made significant contribution to the energy conservation and pollution lowering when providing the terminal products, like mobile handsets, family network access, in an electric multimedia and guiding the consumers to the low-carbon life. Also, China Telecom employed the ICT advantages in providing the customers with a complete solution such that the prospective for the energy-saving and pollution decrease was recognized for the clients.
7. 4 Conclusion
Through the PESTLE evaluation, we get a synopsis of every company's macro environment in China, the Netherlands and Germany, respectively.
In the aspect of politics, all the three countries pubulished a series of policies to open up telecom markets, encourage competition and get international ventures. China Telecom continues to be a state-run company due to the monopoly of telecom economy in China, and the Telecommunication Function is till in drafting. So investing to China Telecom has relatively high insurance policy risk. HOLLAND and Germany are EU countries, having more open investment regulations and sound commercial laws. As a result, the investor will get a lot of favorable when they invest in EU countries. But European union telecommunications regulators never lower the legislation for the telecom industry, which will make a whole lot of pressures to the companies' procedure.
In the facet of economic factors, holland and Germany are both developed countries with a solid economical environment for the introduction of telecom industry. That's an obvious advantages to attract buyers to purchase Western european companies. But arrears crisis and economical downturn in Eurozone also damaged the telecom industry especially in Germany, lead to the income declined, liquidity squash and market demand weak. So the Europe's original overall economy benefits have reduced and lost many buyers. China is still a growing country, however the national current economic climate is expanding fast and steady, the buyer power of world is also expending fast, which also promoting the introduction of telecom industry. So that it is expected that spend money on China Telecom will have a great development potential with China's good overall economy develop situation.
In the facet of social factors, spend money on China telecom will have a investment risk because the they have heavy sociable responsibility to construct basic network facilitis in China. As the people's living standard carrying on to improve lately, there are more and more consumers like to like a variety of telecommunications services. That is partly increasing the company's profit, and it will also make more advantages to the investors. The Netherlands is a modernizing international population and has high quality of living for folks. THE WEB, broadband and mobile penetrations are all far prior to the EU average. The reality make Holland's interpersonal very comfortable for the development of KPN. Germany gets the largest populace in the European Union. Its advanced of urbanization, literacy and affluence along with its strong economic performance make Germany a welcoming telecommunications market.
In the aspect of technological factors, China's communication technology is relatively less than the other two countries, which limited the development of China Telecom. During 2011, China's telecom industry will enter into a "post-3G" era which may lead to a decrease in investment. The Netherlands is becoming one of the most developed and maturing communication and IT technology around the whole Europe which because of the rapid technical process and authorities support in both fields. For the buyers, technical advantages mean that the business has additional business value to do investment. German companies are global leaders in the development of new technology. The German ICT industry is the most significant in European countries and fourth greatest internationally. In Germany: over 80 percent of enhancements in key industries are reliant on ICT systems. So Deutsche Telekom gets the biggest technology advantages among three companies.
In the facet of legal factors, China's "Telecommunication Act" continues to be on the drafting process, but there is absolutely no exact time when it will be published to the general public. Many legislation are unclear, subject to interpretation, and sometimes ignored by provincial government bodies or the companies themselves. So there is no advanced legal framework to protect the China's telecom industry and buyers. It means invest in China Telecom have more investment risk. In holland, The legal institution is highly praised due to its business laws which take laws letter as main body and assisted with legal basic principle ideas. Telecom companies here have a safe legal environment and shareholders' protection under the law are well covered. Germany has a favorable legal environment which is world-famous because of its high transparency and stability. The Germany's effective enforcement system and sound codifications provide traders with a strong legal construction to enforce their rights, and its own commercial rules is also firmly respected.
In the facet of environmental factors, fast industrialization, population progress, and lax environmental oversight have brought on many environmental issues and large-scale pollution in China. And China Telecom is often paying attentions on the healthy life environment for the individual and keeping the concept of environment safeguard and hauling them out in the telecommunications tasks. In the Netherlands, very high densities of both society and monetary activities have resulted in very intense pressures on the country's environment. Care for the environment can be an essential part of KPN's business businesses. KPN places particular concentrate on sensible energy use, because the telecommunication and ICT sector uses a lot of energy. In Germany, environmental safeguard continues to be a major general public concern and a higher policy priority. That is largely anticipated to stresses on the environment caused by its high society density, degree of industrialization and strong reliance on fossil fuels. Deutsche Telekom requires a host of steps to continuously decrease the effects that their own business activities have on the climate and environment. Lowering the Group's CO2 emissions in Germany is a focal point of our environment safety strategy.
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