Monday, September 30, 2019

Heaney’s Poetry Essay

I have recently studied some of your poetry for my leaving certificate english course and I feel greatly changed by what I read. To say the least, it made a strong impression on me. It was a memorable experience. I looked into five of your poems with great depth and they were; â€Å"A Constable Calls†, â€Å"The Forge†, â€Å"The Underground†, â€Å"The Tollund Man†, and of course â€Å"The Skunk†. These poems inspired a range of emotions in me that I would never have expected to feel while reading poetry. In the poem â€Å"A Constable Calls† I feel that the predominant mood is one of tension and hostility. In my opinion it is an explanation of the relationship dynamic between two traditions juxtaposed in the north of Ireland. It is clearly not a friendly, personal relationship. I felt that the way in which you portrayed a young Heaney -an objective observer- was particularly effective to say the least. Even more impressive the young Heaney appears to offer up no opinion yet within the first couple of lines we have a clear sense of the constable. The image we are presented with of the constable is one of authority and control. It appears even â€Å"The pedal treads† are delighted to be â€Å"hanging relieved† from â€Å"the boot of the law†. It seems to me here that not only does this boot refer to the actual boot worn by the constable but also the impersonal, forceful, powerful presence that is the law. I think you captured equally successfully the significance of the exchange between your father and the constable and its meaning to you with the phrase â€Å"Arithmetic and fear†. The air of unease and fear on the part of your father is almost tangeable here. The lack of friendliness is accentuated by the brief exchange of words between your father and the constable. The stern, authoritarian tone of voice he takes with your father when he says â€Å"Any other root crops? Mangolds? Marrowstems? Anything like that? † and the single, unaccompanied response of your father â€Å"No† sent a shiver down my spine as I read. To me, this poem portrayed, extremely effectively, the relationship between your family and the law. â€Å"The Forge† in all its sensuous beauty is by far my favourite poem of yours. The manner in which the â€Å"door into the dark† presents the reader with an interior, strange and atramentous, that as a young boy you are unsure about whether the threshold should be crossed or not. On a literal level, the image you give us as readers and to me as a seventeen year old boy is one of staccato rhythym, life and an abundance of energy, which, while I read it, bestowed onto me a sense of the importance the forge holds in the protection of Irish heritage and tradition as the old is pushed to give way to the new. The incredible way that you blend together the â€Å"clatter/ Of hoofs† from the memory of the blacksmith and what now replaces it, â€Å"Traffic (is) flashing in rows† is enviable at least. This said, I believe too that there is a far deeper meaning, buried deep in under the skin of this poem, much more than just a celebration of local craftsmanship and of cultural roots. In my opinion you also mean to explore, rather ironically, the creative process and the writing of poetry through poetry. The forge in this case being an extended metaphor for the mind and the creative process. Possibly representative of the centre of creativity, you speak of the anvil which â€Å"must be somewhere in the centre† but is not visible to you, the eager observer. If someday I am married and it turns out the way your marriage appears to have in â€Å"The Underground† I will be a lucky man. It is my firm believe that there is a strong divide right in the middle of this poem. It changes from pure ecstasy and excitement to a more sombre, worried, unsure mood towards the end but this is not negative. This is merely pointing out that not everything is all hugs and kisses. It is saying that there are things that need thought to go with everything but that this is part of life. This, I believe, must be understood by the end of the poem to make it worth having read. At the start of any new journey there is aways a sense of excitement and exhiliration, but when things don’t go your way, you can be left â€Å"bared and tensed†. The poem encourages you to delve deep into yourself and seek out the part of your soul distant from even yourself and analyse why you have left this part of you isolate itself. I have an enormous admiration for the way you do this in this poem. As well as this, I feel the unconventional way through which you portray love while also proclaiming your undying love for your wife is fascinating. The mellifluous writing and easy reading of this poem is something admired and envied. â€Å"The Tollund Man† in my honest opinion the most morose, grave, hard hitting poem of yours. It inspires a lot of thought about the human nature. It was written in response to the troubles in Northern Ireland and I feel that using the medium of poetry you search for an answer to modern problems in the past as it is well known that history is constantly repeating itself. It is clear that you are drawing parallels between the ritual killings of the past and the murder of innocent victims nowadays in the north of the country. I feel that you search the memory of the Tollund to get answers but you do not want to â€Å"risk blasphemy† and â€Å"consecrate the cauldron bog/ Our holy ground and pray/ Him to make germinate†. It is my interpretation that in your mind the Tollund man is the key to enlightenment. Is it that you find it hard to confront the reality that is the mindless violence in Northern Ireland? As this is how it appears. You also create a witty but macabre oxymoron at the end when you say â€Å"Unhappy and at home† as you would assume that the one place where a person should be happy is at home but that’s not the case here and I felt that here also you refer to the people who live in Northern Ireland that must deal with the worry of â€Å"The Troubles† everyday. I feel that a nice poem to finish discussing is â€Å"The Skunk† as even thinking of this poem brings a small smile to my face. The lighthearted humourous approach to missing and longing in this poem is astonishing. I believe that this is a poem about your wife. It captures with an breathtaking level of finesse the beautiful nature of an everyday relationship. The ordinary mysteries at the heart of the normal relationship. The comparison of the skunk is probably to emphasise the animalistic naturalness of the relationship along with the primative, erotic nature of the attraction. As you â€Å"begin to tense as a voyeur† as you feel almost as if you are spying on the skunk as she passes, you are reminded of your wife and start to remember the way things were at the start, so romantic, so beautiful. â€Å"After eleven years I was composing/ Love letters again† is a lovely image showing that the excitement and spark that holds a relationship together will not be evident every minute of everyday but that in the end of the day, if you love someone you will always be ready to show them if you need to show them. The long lines, and the enjambement of the poem add to the excitement, playfulness and ease of the poem. It is both sensuous and sensual as you begin to smell â€Å"Small oranges† and see the â€Å"desk light softened†. The tension and expectation you feel is clearly akin to the way you felt about your wife at the time. This sensual imagery all portrays the richness of love. That is all I wanted to say. I believe that it was one of the most memorable experiences of my whole life reading your poetry and I mean that in a good way. It is something I will never look back upon doing in a negative light as I have gained some very important insights into life, love, tradition and conflict resolution from this.

Sunday, September 29, 2019

Vsm Group: Examination of Strategic Position and Development of a Competitive Strategy

1. INTRODUCTION Johnson, Scholes and Whittington (2005, p. 9) define strategy as the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations. Strategy is therefore the long term direction of an organisation. Strategic Management can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organisation to achieve its objectives (David 1999, p. ). Strategic management therefore focuses on the activities of the organisation that contribute to the achievement of organisational success. These activities include management, marketing, financial management, operations management, research and development, and information systems. The strategic position of the VSM will be analysed by applying the analytical models of strategic management to the current situation in the company. The following models will be used to analyse both the internal and external environment of the company, namely, PESTEL, Five Forces Model, and the SWOT analysis The examination of the strategic position of VSM will involve analysing the strategy of the company with emphasis on the environment it operates in, its strategic capabilities, and how expectations affect organisational purposes and strategies. The analysis will conclude with a clear statement of the Key Issues and Critical Success factors. The strategic position of VSM will then be used as a base to develop an appropriate competitive strategy for the company. The development of the strategy will also take into account the organisational cultural issues prevailing in the company. 2. COMPANY OVERVIEW The VSM (Viking Sewing Machines) Group AB engages in the development, production, marketing, and sale of household sewing machines and related accessories, and software (BusinessWeek, 2008. VSM Group AB: Private Company Information, [internet]). The VSM Group currently has two brands, namely, Husqvarna Viking and Pfaff. The company produces several lines of sewing machines, the top being the Designer series and the lowest being the mechanical (non-computerised) Huskystars (Wikipedia 2007 [internet]). The company has manufacturing facilities in Sweden and the Czech Republic and produces top-of-the-line household sewing machines with related accessories and software. Each brand has its own unique and separate product line. According to BusinessWeek (VSM Group AB: Private Company Information, [internet]) the company was founded in 1689 and is headquartered in Huskvarna, Sweden. It has offices in many countries including Austria, Australia, Belgium, Canada, Denmark, France, Finland, Germany, Great Britain, Italy, Japan, Norway, Russia, Switzerland, the Czech Republic, Holland, and the United States of America. As of February 2006 the company was acquired by Singer Sewing Company (BusinessWeek, 2008. VSM Group AB: Private Company Information, [internet]). 3. STRATEGIC POSITION OF THE VSM GROUP The strategic position is concerned with the impact on strategy of the external environment, an organisation’s strategic capability (resources and competences) and the expectations and influence of stakeholders (Johnson et al 2005, p. 17). The strategic position of VSM Group will be examined by utilising the following factors, namely, the influence/impact of macro-environmental issues to the strategy, understanding the company’s strategic capability and how this strengthens the company’s competitive advantage, and thirdly how expectations shape organisational purposes and strategies. The impact of the macro-environment will be analysed using the PESTEL framework, Porter’s Five Forces Model, SWOT analysis and the competitive nature of VSM Group’s home base of Sweden. PESTEL identifies six main types of environmental influences, namely, political, economic, social, technological, environmental and legal. Each influence will be discussed hereunder. 3. 1. PESTEL Political variables †¢ Political stability in Sweden and the United States. †¢ The prevalence of foreign trade regulations in the USA. Economic variables †¢ Decline in demand for sewing machines in past two decades. †¢ Decline in industry profitability. †¢ Low sales in respect of Pfaff within three years of acquisition. †¢ High production costs in the German Pfaff plant. †¢ Investment by Juki and other industry players into the US market. Socio-cultural factors †¢ Not using a consultant for the strategic planning weekend meeting made the strategy process unstructured and was a shift from the company’s way of doing things. †¢ Encouraging participation in the strategy process by middle management through a series of seminars. †¢ The adoption of the strategy document changed workers’ attitudes. The strategy document served as a guide on operational matters. The mission statement was frequently promoted in the company’s public relations. †¢ Focus shift from technical features to customer satisfaction. Technological variables Extended support for business development to encourage retailers to carry the Husqvarna Viking product line exclusively. †¢ Cooperation with Jo-Ann Fabrics & Crafts, a large retailer of fabrics with over a thousand stores throughout the USA, setting up small sewing machine outlets inside their fabric stores. This lead to the introduction of ‘after-ma rket’ services such as training in sewing techniques, software for embroidery construction and ready-made embroidery patterns, spare parts and auxiliary sewing equipment. These after-market services are run by retailers. Customers were willing to pay as much as five to six thousand dollars on a three day course with a sewing expert. †¢ A new accounting system was installed in May 1999. †¢ The marketing and the technical development department also moved into the same office building in January 2000. This ensures that the two departments operate in sync from conception of product ideas to production and ultimately, the marketing of the product. †¢ Introduction of the Designer I model of sewing machine in 1999. The model made use of software to control the machine and contained no less than eight motors to cater for all functions. Customers could download upgrades from the internet site, save it onto the floppy disk that comes with the Designer I package and slide it into the built-in disk drive. This method of upgrading performance was new for sewing machines. †¢ The acquisition of Embroidery Networks Ltd (Emnet) in March 1999. Emnet produced software for PC-controlled professional sewing. With the advent of the internet people could exchange embroidery patterns through the internet or download them at the VSM website. VSM also expanded the number of software engineers from 3 to 17. Environmental variables Manufacture of environmentally friendly sewing machines. †¢ Manufacture of machines which do not consume much electricity. Legal variables †¢ Quality machines which are safe to use. †¢ Flexible labour legislation in Sweden and the USA. †¢ The mission statement pronouncement on the provision of growth opportunities for employees. 3. 2. Five Forces Model Porter identifies five basic f orces that can act on the organisation, namely, (1) the bargaining power of suppliers, (2) the bargaining power of buyers, (3) the threat of potential new entrants, (4) the threat of substitutes, and (5) the extent of competitive rivalry. The objective of the analysis is to investigate how VSM Group needs to form its strategy in order to develop opportunities in its environment and protect itself against competition and other threats. The bargaining power of suppliers The VSM Group restructured its operations when Pfaff in Germany and the Zetina plant in Czech Republic were taken over. Parts were now obtained from local suppliers and those from the Far East. This resulted in the reduction of costs by 50 per cent on key machine components concurrent with large improvements in quality and rejection rates. In this respect the suppliers’ bargaining power can be said to low. The bargaining power of buyers Buyers of VSM Group sewing machines have low bargaining power because the buyers are not concentrated in one geographical area. VSM is an international company and has a wide customer base. The products from VSM are greatly differentiated and therefore cannot be regarded as the same as those from other industry players. The threat of VSM Group buyers switching to other manufacturers is low. The threat of potential new entrants The ease with which new companies can enter the sewing and embroidery industries will increase the intensity of competitiveness among industry companies. High unit costs of production may present barriers to entry because they mean that any new entrant has to come in on a large scale in order to achieve the low cost levels of those already present in the industry. The current high technological advancements and innovation levels in VSM Group, strong customer loyalty to VSM Group, strong brand name, large initial capital requirements, government regulatory frameworks in Sweden and the USA, and superior products create barriers to entry for potential new entrants. The threat of substitutes The threat posed by substitute products by other manufacturers can be countered by continuous investment in technology and ‘after-market’ services by the VSM Group. The extent of competitive rivalry The sewing machine and embroidery industries are more competitive than other industries. The intensity of rivalry in the industry has increased with the coming into the industry of major manufacturing companies from the Far East. The decline in the demand for sewing machines and price cutting by VSM Group also increased rivalry among industry players. The differences in company strategies, origins (Europe and Far East) and culture (European and Japanese) increases rivalry as well. As rivalry among competing firms intensifies, industry profits decline, in some cases to the point where an industry becomes inherently unattractive (David 1999, p. 128). This statement manifests itself in the number of major manufacturers (Singer and Pfaff) who are going bankrupt. 3. 3. Identification of Key Issues: SWOT ANALYSIS A SWOT analysis summarises the key issues from the business environment and the strategic capability of an organisation that are most likely to impact on strategy development (Johnson et al 2005). It analyses the internal strengths and weaknesses, and external opportunities and threats. The following is a SWOT analysis of the VSM Group AB. SWOT analysis of VSM Group AB |Internal Strengths |Internal Weaknesses | |Market dominance in Europe. |Dependence on few product ranges. | |Leadership and management skills. |High production costs. | |Financial and cash resources. |Reliance on retailers for distribution. | |Manufacturing ability. |Lack of industry information. |Innovation processes and results. |Possession of two brands that compete in the same market. | |Reputation. | | |Product and service quality. | | |Differentiated brands. | | |One European currency – Euro. | | |External Opportunities |External Threats | |New markets and segments. |New market entrants. | |Free market economies arising in Asia. |Increased competition. | |Diversification opportunities. |Increased pressure from customers and suppliers. | |New takeover opportunities. |Substitutes. | |International growth. |Low market growth. | |Increased demand for sewing machines. |Economic cycle downturn. | |Competitor weakness. |Technological threat. | |Demographic and social change. |Change in political or economic environment. | |New international barriers to trade. | 3. 4The competitive nature of VSM’s home country What has become known as Porter’s Diamond suggests that there are inherent reasons why some nations are more competitive than others, and why some industries within nations are more competitive than others (Johnson 2005, p. 71). The model will be used to examine how the home base of VSM i. e. Sweden plays an important role in creating competitive advantage on a global scale for VSM. The following four decisive elements are identified: †¢ Availability of strengths in certain fields especially the automation and technological fields. The technological advancements made by the VSM Group in its Swedish operation since the beginning of the millennium gives it a competitive advantage over its rivals and enable it to compete internationally. †¢ High demand in the Sweden for VSM Group sewing machines provides the basis upon which the characteristics of the advantage of the company are shaped and leads to global dominance of the industry by VSM. †¢ Related and supporting industries in the Swedish economy, . e. , the presence of Bernina Fritz Gegauf AG means that the two companies benefit from each other. Bernina enjoyed a solid reputation and their product range resembled that of VSM with their top model accepting embroidery files developed for other brands including VSM. All these factors made Bernina an important quality benchmark for VSM. †¢ Domest ic rivalry with Bernina and the need by both companies to search for competitive advantage helped to provide the two companies with bases for achieving such advantage on a global scale. 3. 5. Foundations of strategic capability According to Johnson et al (2005, p. 17) strategic capability can be defined as the adequacy and suitability of the resources and competences of an organisation for it to survive and prosper. The strategic capability of a company refers to the resources that the organisation has and the way in which these resources are used. Resources and competences VSM’s resources can be considered under the following four broad categories: †¢ Physical resources – manufacturing plants in Sweden, USA and the Czech Republic. †¢ Financial resources – operating cash, budgets. †¢ Human resources – average number of employees (1,689). The intangible resources will refer to the skills and knowledge that the employees possess. †¢ Intellectual capital – the brand name VSM Group AB, business systems and customer databases. Threshold capabilities Threshold capabilities are those essential for the organisation to be able to compete in a given market (Johnson et al 2005). VSM’s threshold resources refer to: internet based developments, the acquired software company Emnet, increased number of engineers, and Pfaff. Unique resources and core competences The design of the VSM sewing machines make them unique resources in hat they give the company competitive advantage and other manufacturers find it difficult to imitate or copy the designs. VSM’s core competences refer to: the ‘Dealer-Partners’ programme, the cooperation with Jo-Ann Fabrics & Crafts, and the accompanying introduction of the ‘after-market’ services. All these strategies give VSM a competitive advantage. 3. 6 . Organisational culture analysis Johnson et al (2005, p. 47) define culture as the basic assumptions and beliefs that are shared by members of an organisation, that operate unconsciously and define in a basic taken-for-granted fashion an organisation’s view of itself and its environment. Every organisation has a culture and it includes values, beliefs, rites, language, metaphors, symbols and rituals. Culture derives from VSM’s past, present, current people, technology and physical resources, aims, objectives and values of those who work in the organisation. These cultural products can be used by strategists at VSM to influence and direct strategy formulation, implementation, and evaluation activities. The following cultural factors specific to VSM have been identified: †¢ The strategy process was changed to include, for the first time, both top and middle management. The involvement of middle managers had a positive effect on operations in that the strategy document was referred to as a guide on operational matters and the mission statement was frequently promoted in VSM’s public relations exercises. The strategy document was also regarded as an ongoing process which could be changed in response to changing situations in the company. †¢ Retailers were transformed into ‘Dealer-Partners’ which included extended business support to retailers to encourage them to deal only with the Husqvarna Viking product line. In the USA, VSM entered into a cooperation agreement with Jo-Ann Fabrics & Crafts to set up small sewing machine outlets inside their fabric stores. This lead to the introduction of ‘after-market’ services such as training in sewing techniques, software for embroidery construction and ready-made embroidery patterns, spare parts and auxiliary sewing equipment. These after-market services are run by retaile rs. Customers were willing to pay as much as five to six thousand dollars on a three day course with a sewing expert. In support of the company’s strategy the top management of the company was changed to accommodate the managers of the national sales companies as well as the marketing vice president. †¢ The operating systems also underwent major changes. A new accounting system was installed in May 1999 to assess accounting information in new ways to keep track of the various activities in the value chain. †¢ The acquisition of Pfaff upset some employees and pleased others. The company now had two brands which were competing for the same market. Former competitors were now brought to the same stable and the company faced a challenge of how to keep them apart on other dimensions than price and quality. †¢ The relocation of the German Karlsruhe operation to the Swedish Huskvarna plant resulted in only a handful of research and development engineers staying on. The company had to re-orientate the German engineers into the Swedish way of doing things since the engineering principles of the two countries were fundamentally different. 4. FORMULATION OF COMPETITIVE STRATEGY Long-term objectives represent the results expected from pursuing certain strategies (David 1999, p. 76). Strategies represent the actions to be taken to accomplish long-term objectives (David 1999, p. 176). Objectives take the generalities of the mission statement and turn them into more specific commitments: usually this will cover what is to be done and when the objective is to be completed (Lynch 2003, p. 440). Objectives will therefore possess the foll owing characteristics, namely, they should be measurable, realistic, understandable to all, hierarchical, achievable, and should contain time frames. Clearly communicated objectives, according to David (1999, p. 77), are vital to the success of the company as they provide a basis for consistent decision making by company managers and help stakeholders understand their role in the company. Formulating the competitive strategy for the VSM Group will consist of aligning the internal resources and skills and the external opportunities and risks. The alignment will make use of the Threats-Opportunities-Weaknesses-Strengths (TOWS) Matrix. The TOWS matrix will be developed based on the information obtained in the SWOT analysis of the VSM Group and will identify options that address different combination of the internal factors (strengths and weaknesses) and the external factors (opportunities and threats). 4. 1. Critical Success Factors: TOWS MATRIX Johnson et al (2005, p. 96) define criti cal success factors (CSFs) as the product features that are particularly valued by a group of customers and, therefore, where the organisation must excel to outperform competition. Critical success factors relate to the aspects of the competitive strategy in which a company must excel. The TOWS Matrix identifies four types of strategies, namely, SO Strategies, WO Strategies, ST Strategies, and WT Strategies. SO Strategies make use of the company’s internal strengths to take advantage of the external opportunities. WO Strategies take advantage of external opportunities to improve internal weaknesses. ST Strategies make use of the company’s strengths to avoid or reduce the impact of external threats. WT Strategies are defensive tactics directed at reducing internal weaknesses and avoiding environmental threats (David 1999, p. 81). The VSM Group TOWS Matrix | |Strengths (S) |Weaknesses (W) | |INTERNAL |Market dominance in Europe. |Dependence on few product ranges. | |FACTORS |Leadership and management skills. |High production costs. | |(IFAS) |Financial and cash resources. |Reliance on retailers. |EXTERNAL FACTORS |Manufacturing ability. |Lack of industry information. | |(EFAS) |Innovation processes and results. | | |Opportunities (O) |SO Strategies |WO Strategies | |New markets and segments. |Continued investment in Europe and the USA. |Explore new products and ranges. | |Free market economies arising in Asia. Penetrate high-end embroidery segment further. |Exploit mergers and takeovers. | |Diversification opportunities. | |Abandon high cost operations. | |New takeover opportunities. | |Diversify into new markets in Europe and Asia. | |International growth. | |Enhance retailer network which focuses on hobby | |One European currency – Euro | |segment. |Threats (T) |ST Strategies |WT Strategies | |New market entrants. |Emphasise after-market sales of accessories and |Withdraw from declining markets, etc. Germany. | |Increased competition. |software. |Increase brand awareness in current markets. | |Increased pressure from customers and suppliers. |Continued investment in Europe and the USA. |Reduce reliance on retailers. | |Substitutes. |Build on current management capacity. Where possible, develop barriers for new | |Low mar ket growth. | |entrants. | 2. Strategic options at VSM Group AB Development directions are the strategic options available to an organisation, in terms of products and market coverage, taking into account the strategic capability of the organisation and the expectations of stakeholders (Johnson et al 2005, p. 340). The following strategic options are proposed for the VSM Group: 1. Protect and build on current position Consolidation Consolidation is where organisations protect and strengthen their position in their current markets with current products (Johnson et al 2005, p. 342). The sewing market situation is forever changing and requires industry players to continuously innovate to improve the value of the products. The threat of new competitors or new entrants into the sewing industry means that VSM has to pay particular attention to how the company’s resources and skills should be adapted and developed to maintain its competitive advantage. Withdrawal by VSM from the German market should be regarded as consolidation. Market penetration A market penetration strategy seeks to increase market share for present products or services in present markets through greater marketing efforts (David 1999, p. 50). VSM should therefore strive to penetrate the high-end embroidery market further by utilising aggressive marketing efforts. These efforts should be focused on existing markets in the countries mentioned in the company overview. 2. Product development Product development refers to significant new product developments and not minor variations on an existing product. According to David (1999, p. 51) product development is a strategy that seeks to increase sales by improving or modifying present products or services. Continued development and innovation on the Designer series will counter new entrants into the market, will maintain the company’s reputation as an innovator, and will protect the company’s overall market share. 3. Market development Market development is where existing products are offered in new markets (Johnson et al 2005, p. 46). This may involve seeking new market segments, new geographical areas, or new uses for its products that will bring in new customers. Expansion to bring in new customers to the company for its existing company could involve some slight repackaging and then promotion to a new market segment. It will often involve selling the same product in new international markets, especially i n China and Asia. 4. Diversification: related markets Diversification is defined as a strategy that takes an organisation away from both its current markets and products (Johnson et al 2005, p. 46). When an organisation diversifies, it moves out of its current markets and products into new areas. Diversification carries with it an element of risk as it involves a step into the unknown. Moving into related markets however minimises the risk. VSM can diversify into related markets by becoming involved in the activities of its outputs such as distribution, transport, and logistics. 3. Methods of strategy development at VSM Group AB (Action Plan) A development method is the means by which any strategic direction will be pursued (Johnson et al 2005, p. 348). For an international company, VSM can use the following means of pursuing its strategic direction: acquisition and mergers, joint ventures and alliances, franchising, licensing, overseas offices, and overseas manufacture. 1. Acquisition and mergers Acquisition is where strategies are developed by taking over ownership of another organisation (Johnson et al 2005, p. 349). According to David (1999, p. 59), an acquisition occurs when a large organisation purchases a smaller one and vice versa. Mergers occur when two organisations of similar size unite to form one enterprise. The acquisition of Pfaff by the VSM Group represented a coup for VSM. The VSM Group had in its stable two strong brands that competed for the same market space. Acquisitions of manufacturing companies in the Far East would also assist VSM to break into new markets (market development), new technologies, and low cost raw materials. 2. Joint ventures and alliances A strategic alliance is where two or more organisations share resources and activities to pursue a strategy (Johnson et al 2005, p. 353). It is a form of weaker contractual agreement between two parent companies. A joint venture is the formation of a company whose shares are owned jointly by two parent companies (Lynch 2003, p. 483). In order to diversify into related markets and to access new markets like those in the Far East it will be crucial for VSM to form joint ventures and strategic alliances with current manufacturers namely, Brother, Janome or Juki. These types of agreements lock out other competitors, utilises joint expertise and commitment, and allows potential partners to learn about each other. 3. Franchise A franchise is a form of licensing agreement in the contractor provides the licensee with a pre-formed package of activity (Lynch 2003, p. 484). The package may include offers of the VSM Group brand name to retailers, technical service expertise and advertising assistance. This can be an attractive proposition to retailers willing to take up a franchise licence as it possesses lower risk and provides exclusive territory to the franchisee. This will also enhance dealer network which focuses on the hobby segment of the market 4. Licensing According to David (2003, p. 84) licensing refers to a situation where technology or other assets are provided under licence from the home country. Payment for such services is usually in the form of royalty or some form of arrangement. 5. Overseas offices The VSM Group has sales companies and representative offices in Europe, Russia, North America and Australia. The VSM Group could gain competitive advantage by expanding their operations into the Far East and Africa. These additional offices would provide a permanent presence for the VSM Group in those new markets. 6. Overseas manufacture The VSM Group currently has two manufacturing plants in Sweden and the Czech Republic. The establishment of new manufacturing plants in overseas countries like the USA carries risks for the company. However the risks may be offset through the savings that could be derived from no longer having to export to those overseas countries. 4. CONCLUSION Strategy was defined as the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations. Strategic Management was also defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organisation to achieve its objectives. The strategic position of the VSM Group AB was analysed by applying the analytical models of strategic management to the current situation in the company. The following models were utilised to analyse both the internal and external environment of the company, namely, PESTEL, Five Forces Model, and the SWOT analysis. The examination of the strategic position of VSM Group involved analysing the strategy of the company with emphasis on the environment it operates in, its strategic capabilities, and how expectations affect organisational purposes and strategies. The analysis of the environment concluded with a clear statement of the Key Issues (SWOT Analysis) and Critical Success factors (TOWS Matrix). The strategic position of VSM Group was used as a base in the development of an appropriate competitive strategy for the company. The development of the strategy took into account the organisational cultural issues prevailing in the company. 5. BIBLIOGRAPHY 1. David, F. R. , 1999. Strategic Management. 7th ed. New Jersey: Prentice Hall. 2. http://investing. businessweek. com [accessed 08 May 2008] 3. http://en. wikipedia. org/wiki/VSM_Group_AB [accessed 08 May 2008] 4. Johnson, G. Scholes, K. & Whittington, R. , 2005. Exploring Corporate Strategy. 7th ed. Financial Times Prentice Hall. 5. Lynch, R. , 2003. Corporate Strategy. 3rd ed. Financial Times Prentice Hall.

Saturday, September 28, 2019

Urban planning Essay Example | Topics and Well Written Essays - 1500 words

Urban planning - Essay Example The meeting starts at 5.00 p.m. From my first impression, the meeting was going on smoothly although there are some changes that could be made to ensure that the meeting is more efficient. The chairman was commendable in his role and ensured that order was maintained throughout the meeting. People respected his calls and he was the final authority in regards to all the matters in regards to the meeting. The members of the public who attended the event had also been informed on the need of order during the meeting. One improvement I would recommend is that the meeting be held on Saturdays instead of during the agenda week. This is because of several factors. People might not want to go home late in the night and therefore the meeting can run late into the night and be adjourned. If the meeting is held on a Saturday afternoon, people will have ample time to go through the meeting and also further time to air their contributions. I was surprised to notice various prominent people in the town at the meeting. One that I did not expect was the mayor, John Lewis, who was also in attendance. Most of the time, he was silent and just took down notes, however, when it to the AOB segment he thanked the commission for assisting him in trying to fulfill his election agenda of a better Gilberts Town that would be the envy of the country. He requested that this cordial relationship continue into the future. His presence there was a sign of the importance of this meeting to the community. Initially, I thought that any attendee of the meeting could speak at the meeting but I realized this was not the case. Anyone who wants to speak at the meeting must fill a speaker card. An individual fills the agenda items he wants to speak on and filing it with the clerk before the actual meeting. There are several guidelines that determine the use of speaker cards: When a designated speaker is called to air their views, the speaker shall use the microphone set for public

Friday, September 27, 2019

Reflection on Demonstrating a Skill Personal Statement

Reflection on Demonstrating a Skill - Personal Statement Example This paper is a reflection of a demonstration of a skill to a peer. I employed Gibbs' reflective cycle which is fairly straightforward and encourages a clear description of the situation, analysis of feelings, evaluation of the experience, analysis to make sense of the experience, conclusion where other options are considered and reflection upon experience to examine what I would do if the situation arose again. So while I was there at the clinic where I work, I figured there is someone I can help on some skills. Turns out that there was a student nurse who was in placement for the day, to assist and to observe, and to learn in the process. To prep up, I established some rapport with her so she would feel comfortable with me when the time comes that I would have to teach her some new skills. I also arranged and prepared the things that would possibly be necessary for the work ahead for the day, asking her assistance when necessary so she would become acquainted with them. The first patient arrived, a ten year old girl with her mom, and I greeted them with a smile to make them feel at ease. As a standard procedure, the patient's name was withheld in accordance with The Code of Professional Conduct (NMC 2002). While doing so, I introduced myself and the student nurse to the patient and her mother and explained exactly what my work entailed and what I was going to do. Afterwards, we checked the patient's health concern and apparently, the child is suffering from asthma from time to time and as an aid, she needs to know how to take her inhaler through a large volume spacer to help her with her condition. As such, she needed to know how to use the device so she can readily utilize it when the need arises. So in essence, I had three students watching me demonstrate how to use the device --- the patient, her mother and the student nurse. In this case, I utilized two teaching styles: patient-centered and student-centered. I showed them the device and demonstrated how to put the device together, how to use the spacer and how to maintain it. I did this in a relaxed and open manner to give them an impression that it is rather easy to do it, and then asked the patient to demonstrate back to me what I had just taught them. This is important to see if the patient has understood what has been conveyed to them. Kemm, et al (1995) states that a client is more likely to want to assimilate information that has been conveyed to them, if the planned learning is relevant and made interesting to the individual client. Besides the patient, I also asked the student nurse to demonstrate the skill back to me. In promoting learning in practice, mutual respect and valuing the merit of passing on nursing skills through practice-based learning is crucial (Glen and Parker, 2003). I also provided verbal guidance and encouragement to the patient and guided her when necessary. Role models, according to Morton-Cooper and Palmer (2002), provide an observable image for imitation, demonstrating skills and qualities for mentees to emulate. The patient's visit ended well and before she and her mother left, both of them assured me that they are already confident that they can utilize the device properly and with much practice, it is going to be easier after a while. Hopefully, the new skill helps the patient with easing her poor health condition. Truthfully speaking, I am fully aware that the teaching session went well. I would credit it to the fact that my mentors taught me

Thursday, September 26, 2019

Rubrics In Evaluating Student Works Case Study Example | Topics and Well Written Essays - 1750 words

Rubrics In Evaluating Student Works - Case Study Example The author citing (Nitko, 2001) (Moskal, 2000) said, " A holistic rubric requires the teacher to score the overall process or product as a whole, without judging the component parts separately. In contrast, with an analytic rubric, the teacher scores separate, individual parts of the product or performance first, then sums the individual scores to obtain a total score." Mertler, (2001) citing Chase (1999) suggested that holistic rubrics are customarily utilized when errors in some part of the process can be tolerated provided the overall quality is high. He cited Nitko (2001) further said that the use of holistic rubrics is probably more appropriate when performance tasks require students to create some sort of response and where there is no definitive correct answer Hence when talking of overall quality holistic is preferable aside from somewhat quicker scoring process than the use of analytic rubrics (Mertler, 2001, citing Nitko,(2001). This is basically due to the fact that the teacher is required to read through or otherwise examine the student product or performance only once, in order to get an "overall" sense of what the student was able to accomplish (Mertler, 2001). Mertler, 2001 citing Nitco ( 2001) prefers the use of analytic rubrics when fairly... it ( 2001) prefers the use of analytic rubrics when a fairly focused type of response is required, that is, for performing tasks in which there may be one or two acceptable responses and creativity is not an essential feature of the students' responses. He also suggested the use of the same in making an assessment on a multidimensional level. A rubric measures performance and measuring performance is just one of the functions of a teacher hence prior to design a specific rubric, a choice scoring holistically or analytically must be made.

Criminology and criminal justice in The United Arab Emirates Essay

Criminology and criminal justice in The United Arab Emirates - Essay Example UAE has been established in December 2, 1971 with Abu Dhabi as the capital owing to its industrial and cultural activities. Their official language is Arabic and their official religion is slam. Economic wise, UAE is considered to have a strong high income with a GDP of $ 47,407. UAE based their political system on the 1971 constitution however each ruler of each federation retain an absolute power in their own emirate. Interestingly, the seven emirs vote for a president of the seven federations to be their leader however this does not affect the governance of each emir. UAE also has a semiautonomous body referred to as the National Guards with duties to guard the border, utilities in the oil field and other strategic locations. They also act as reserve in cases the metropolitan police force is in need of reinforcement from them. Abu Dhabi and Dubai police are the leading police forces in the UAE with their quality services. Abu Dhabi police department is honored to have maintained the shining image of the country with the dedication, honesty, and integrity of the policemen. Dubai policemen also pride themselves of preventing crimes before it occurs, bringing justice, maintaining security and order, and honoring and protecting lives with their mission in making Dubai the best in such services around the world. UAE has several police divisions to include traffic, criminal investigation, emergency police, nationality and passport, civil defense, immigration, prison, trials and court-martials with their own functions and responsibilities.

Tuesday, September 24, 2019

The Whistleblower Protection Act of 1989 Research Paper

The Whistleblower Protection Act of 1989 - Research Paper Example A whistleblower is a person who makes a disclosure that evidence improper or illegal activities in an employment setting (Whitaker, P1). On the other hand, King defines the Whistleblower Protection Act of 1989 as a United States of America’s federal law that protects federal whistleblowers or government employees who report any misconduct by a federal agency. An example of a famous whistleblower was Jeffrey Wigand, Brown & Williamson’s former research and development vice president in 1966, who disclosed that cigarette companies’ executives were aware of the fact that cigarettes were addictive and increased the amount of nicotine deliberately to make them even more addictive (King, para5). The Whistleblower Protection Act/WPA was enacted in 1989, following apparent weaknesses in the 1978 Civil Service Reform Act, which was an earlier attempt to protect whistleblowers. This law led to the creation of the Office of Special Counsel, which investigates complaints from government employees that they received punishment after reporting about abuse, fraud or waste in their agencies to Congress. This office has jurisdiction over whistleblower reprisal allegations that the United States Securities and Exchange Commission employees make. The Congress passed the Act with the intention of strengthening and improving Federal employees’ rights protection, to end retaliation and to aid in the eradication of unlawful activity within the government. It mandates that workers should not go through adverse consequences because of personnel practices that are prohibited  and establishes that the Office of Special Counsel’s primary role is protecting workers, particularly whistleblowers, from forbidden personnel practices.

Monday, September 23, 2019

Environmental Science in DomesHc Dwellings Report Coursework

Environmental Science in DomesHc Dwellings Report - Coursework Example The information includes the possible options of accessing the house from various directions and the options of transport. The space in the house and the number of rooms will be a critical factor in determining the occupancy of the house in terms of the number of occupants. This is essential because in addition to the wall dimensions of the walls and the space in the house provides direct how the occupants will use every space as well as their reactions to the issues arising in the usage of the space. Apart from the basic information about the house, it will be necessary to examine the suitability of the wall, the floor and the roof structures. From these we obtain the u-value of the house and the suitability of the construction materials used for the house. In the same part 1, there will be an analysis involving the calculation of the upper limit and the lower limit from which it will be possible to do calculations of the coefficient of heat loss. From the wall construction and open air ventilation, the project will calculate the heat loss through ventilation. 2. House Description The project involves Linley and Simpson house located along the 12 Station Road in Horsforth in West Yorkshire, UK. Aerial View from Google map Latitude: 52.70 Longitude: 1.217 Wind angle to facade (Summer Season): 100 Wind angle to facade (Winter Season): 150 Front View Back View 3. Required Adjustment The second step of this project involves the study of the meteorological data in relation to the house structure in order to make adjustments out of the reaction of the occupants. The adjustment will depend on the necessary resistance required for the management of wind velocity. Adjustment in this case includes the wall dimensions, space between walls and the orientation of the house in relation to the direction of wind. From the adjustments and the calculation of heat loss coefficient for the house ventilation, the project will require maintaining proper quality of air good air qual ity by making changes. Other than energy losses, we will look at the sources of heat gain. Externally solar gain and internally from the daily electrics and metabolic we usually use. As we group out the values from heat loss and gain, we can estimate the extra energy needed to heat the house to the optimum internal temperature. Furthermore, to calculate energy use we need to identify our balance point- the external temperature above which a building needs no further heating to achieve a constant internal comfort temperature. By then we can calculate degree-days and hence estimate the amount of time needed to heat our houses over a period of time. After that, we calculate the carbon emissions of the building and move on to the part 2 of our project. In part 2, I will work out two methods to improve the energy loss and gain from the building. By using different material in order to reduce carbon emission and increase energy gain and maintain a good living standard for occupants 4. Ana lysis of the House Structure Linley and Simpson House is a simple brick house with between 25% - 30% glazing. Due to its location, it receives sufficient sunlight from 9 am in the morning to 4pm in the evening. Both the front view of the building and the back has an opening. The privacy of the building is ensured using curtains, and this is a limiting factor to the exposure of the house interior to

Sunday, September 22, 2019

Diamond Producing in South Africa Essay Example | Topics and Well Written Essays - 1000 words

Diamond Producing in South Africa - Essay Example The UK-based company owns stakes in leading global producers of gold (42%, AngloGold Ashanti), platinum (75%, Anglo Platinum), and diamonds (45%, De Beers Consolidated). In addition, Anglo American has interests in paper and packaging goods (more than 20% of sales), ferrous and base metals, and industrial minerals. It also is one of the world's largest independent coal miners. The company controls assets around the world. Descendants of the founding Oppenheimer family no longer control Anglo American, although Nicky Oppenheimer, who chairs De Beers, sits on the company's board. How western democracies have supplied arms, created a state of lawlessness, and taken advantage of the escalating confusion to swindle away more mines. When tension is high massive looting is coordinated at extremely mediocre rates. Increased 'beneficiation' or downstream value added by the diamond industry has become an important issue for the South African government in recent years Though diamonds are beneficial there are also shortcomings of the trade. The United States is heavily dependent upon South Africa for key minerals including chrome, manganese, vanadium and platinum. Though two decades old, the following /New York Times/ report highlights not only U.S. dependence on South African strategic minerals, but its vulnerability to any future Russian-South African blockade. Written at the time of sanctions against South Africa in the apartheid era, the 5. Regulatory issues A new Diamond Act became effective in 2000. The Act provides for the establishment of a Diamond Board and spells out its objectives, powers, duties and functions. The Act also provides for control measures in respect of the possession, purchase and sale, as well as the processing and the import and export of diamonds. 6. Security issues The trade in illicit and conflict diamonds in South Africa is a complex issue. There is emerging evidence, however, that there is an extensive illicit trade in domestic rough diamonds, and in conflict diamonds. This same type of trade has led into wars in diamond producing countries

Saturday, September 21, 2019

Comparison-Theory of Evolution vs Creationism Theory Essay Example for Free

Comparison-Theory of Evolution vs Creationism Theory Essay In this essay I will compare the Theory of Creationism and the Theory of Evolution. While there are many that deeply believe in each of these theories, they present stark differences in thinking, and in individual beliefs. Let us begin by looking at Creationism. This particular theory has not a single shred of evidence to support it, yet vast populations are willing to die rather than denounce it. It has been referred to as â€Å"The Truth†. The basic belief of this theory is that â€Å"The Lord God†, or a â€Å"Supreme Being† created the universe and everything in it. It is believed that we as humans were made in the image of â€Å"God†. God created man, and called him â€Å"Adam†. Adam was lonely and The Lord then took a rib from Adam while he slept, and with it he created woman. God called her â€Å"Eve†. The creation of the universe and everything in it took six days. On the seventh day, God rested. In stark contrast to the Creationist Theory, we have what is called the Theory of Evolution. Charles Darwin is credited with first proposing this theory, which also includes something known as ‘natural selection†. First things first, let us examine evolution. Darwin believed that we as humans, as wells animals and even plants are constantly changing. His belief and that of many others is that with every generation slight modifications are inherent, thus producing better and better offspring. By this this he means better adapted to survive and flourish. If it could ever be demonstrated that any complex organ existed which could not possibly have been formed by numerous, successive, slight modifications, my theory would absolutely break down. † (Charles Darwin). To summarize, the basis of theory here is the guiding force or â€Å"natural selection† preserves beneficial variations, therefore each generation exhibits new and more complex organisms. This applies to the tiniest bug or seedling, as well as all plants and animals including human beings. Scie nce however is yet to prove either theory. It must be said that the details of this process remain obscure and are not likely to be known in the near future. † (The RNA World, p72-73). It must be understood that science is based on two assumptions known as â€Å"axioms†. Axioms represent self-evident assumptions. Scientists would not be able to continue the study of science without the observable axiom. If this were the case doubt would inevitably be cast on all scientific theories. Whereby if scientists were not able to observe reality, or if they were to observe it inaccurately, the basis of all scientific theories would be thrown out. It is most fortunate for mankind that the majority of people see this axiom clearly, without the need for instruction or clarity. While keeping in mind the observable axiom we must examine the naturalistic axiom. The naturalistic axiom differs from the observable axiom because unlike the observable axiom, the naturalistic axiom can be tested. This means science can function perfectly without it being easily observed by 90% of the population. Still, the means by which life originated is not currently understood. Because of the complicated problems that arise when studying life’s origin the more we begin to understand it, the more lost we become in respect to it. It seems to elude scientists more and more with each successive study revealing more mysterious problems then the last. In regard to the origin of life, the naturalistic axiom only permits science to investigate theories that exclude things that cannot be tested and proven. That means the study of theories without proof, such as supreme beings will not be considered. This places scientists in a rather precarious position. Not only is the opportunity to study God-related ideas not permitted, but evolutional ideas have not been proven either. Since evolutionists are not willing to abandon the naturalistic axiom they are forced to make one final observation. They must assume that science will inevitably discover the origin of life in the future. Therefore nothing has been proven-only assumptions have been made. Many scientists however have already accepted that evolution can be proved, yet I have not seen evidence of either theory. It is because of the lack of evidence that I make an observation myself. In other words, I presume to know one thing: Our beliefs are of a personal nature. They are not to be criticized or debated. Not an ounce of proof is necessary. Neither is the application of any type of axiom. No matter if an individual chooses either of the theories discussed in this paper, or proposes a theory of their own, or decides that no theory is even adequate-whatever one believes can never be wrong. While many would like to impose their beliefs on others, it is not an acceptable practice on any level. To attempt to do so has far reaching consequences and many times results in catastrophic illness, heartbreak and death. I find it unconscionable, yet it is occurring in many parts of the world even as this essay is written. Decisions can only be made for oneself. If only every person everywhere would stop to consider this, it is this author’s opinion that the world would be a much happier place.

Friday, September 20, 2019

Consumer behaviour in Brazil

Consumer behaviour in Brazil Brazil is the largest country in Latin America. The total population of Brazil is 170 million. The south east part of Brazil has the highest population and then comes the north east region. The GDP and per capita of the south east is more than that of the north east of Brazil. CONSUMER BEHAVIOUR The consumer behaviour in brazil to the detergent market is different in the north east and the south east of Brazil and is depended on many influences. One of the influence is the social influence. Social Influences North East Brazil South East Brazil Culture and sub culture 65% of the population are a mix of African and European origins and their lifestyles, rituals and values share an African influence. Music and humour are the key elements of their culture. Only 35% of the population share an African influence whereas the rest are the migrants from Europe. This part is the financial and the political hub of Brazil. Social class More than half of the population fall in the low income category .The economy is heavily dependent on agriculture. It is more labour intrinsic type of job. Most of the women in the family are housewives. Only 21% of the entire population fall in the low income category and most of the women are from the working class. Group Membership Most of the women meet and wash their clothes in public laundry or pond in a group. Cleanliness being an issue of gossip, every woman tend to keep their family clean to please the group. Most women own a washing machine so self esteem and social status is given less importance. The purchase behaviour of a customer depends on various factors as shown in the diagram below. The social influences are the subjective norms. Apart from price of the detergent, the important attributes for the north east customers as per the rankings are Power of detergent Its fragrance The ability to remove stains without the need of soap and bleach The dissolving power with the water Packaging Impact on colours Whereas the south eastern customers are habitual decision makers. They would prefer to use the same detergents that they are using unless they dont get any flaws. BRAND PLAYERS AND THEIR STRATEGIES UNILEVER: TOP BRANDS: Omo is the top brand of the portfolio and is considered as a high quality at a premium position which is for the high end market. Omo has more than half percentage of the total market share in Brazil .Minerva is a medium quality product with low brand awareness and second in market share. Campeiro is a well-known cheapest product but with a low top of the mind penetration. The target customers of Unilever were the high income segment. The highest profit margin that Unilever generates is from the sales of Omo. STRATEGY USED: With the help of brands like Omo Unilever was the market pioneer in Brazil and hence got the first mover advantage in the detergent sector. Unilever is the LEADER in the market. It followed the strategy whereby it created the most desirable market space in the minds of the consumers as seen by the Top-of-Mind-Awareness results. (Exhibit 8) Their main strategy is to advertise and increase the sales especially of Omo as the profits generated from their detergents proves a backbone for their expansion in food and personal care categories. Unilevers main line of promotion was through the media advertising. This is cost effective and irrespective of the income, Brazilians are avid television watchers. POSITIONING: The various products of Unilever are positioned as per the product and its appeal. Its positioning ranges from removal of stain by eliminating the need of bleach (Omo) to delivering pleasant smell and softness (Minerva) to cost reduction (Campeiro) DISTRIBUTION: Unilever had the daunting task of distributing to 75,000 small outlets in the Northeast. For this it relied on its existing network of generalist wholesalers and sometimes also on secondary, smaller local wholesalers. This however increased their cost. It also had the option of contracting with the specialized distributors. PROCTER GAMBLE: TOP BRANDS: Ace is of the superior quality and is still sold at a lower price than its second brand. Through research and development, their strategy would be to improve the price and the perceived quality of Bold and Ace which is in competition with Minerva and Omo respectively. STRATEGY USED: PG is a MARKET CHALLENGER which is aggressively trying to extend its market share. It has specific challenger strategies like VALUE PRICE GOODS AND SERVICES and IMPROVED SERVICES. The advertising is not very effective as the consumers dont have much knowledge or a top of the brand awareness as compared to the other brands in the market. POSITIONING: Like most of the products of Unilever their products are also positioned depending on the target customers. Two of their main products are positioned similar to Unilevers products e.g. Bold and Pop whereas Ace is positioned as a superior whiteness source. ASA ASA is a local Brazilian brand and is only popular in Northeast TOP BRANDS: Invicto which is an entry level detergent as it is a low cost detergent and valued by its customers. It is a key competitor of Campeiro and focuses on cost reduction across all dimensions. STRATEGY USED: They are the MARKET NICHERS and have been serving a special segment of the market as a whole. POSITIONING: Positioned like Campeiro i.e. as a low priced product SWOT OF UNILEVER IN BRAZIL (AS PER CASE) PRESENT SITUATION: Unilever is the pioneer of consumer goods industry in Brazil and a clear leader in the detergent powder category with an 81% market share achieved by brands like Omo, Minerva and Campeiro. The Brazilian fabric wash market consists of two categories: detergent powder and laundry soap. It faces a huge threat from PG and hence Unilever should look into tapping the niche markets before its competitors entry into them STRENGTHS: Detergent market pioneer in Brazil. Hence gained the first mover advantage which proved very favourable for its success Unilever is a strong brand in itself and has wide acceptance for its products all over the world Have a wide range of brands i.e. have a strong brand portfolio which caters to different market segments. For e.g. Omo is more technology oriented, Minerva clings to its emotional appeal and is a traditional brand, Campeiro focuses more on cost reduction They are innovative and customer centric in their approach. E.g. introduction of 4 new variants of Omo. Each of them have different properties targeted at specific needs of customers Detergents will always remain the cash cows for Unilever WEAKNESS: Difficult to make a selection with respect to cost effectiveness between the Generalist Wholesaler and Specialist Distributor since both could prove to be equally useful in its own way and once selected very hard to reverse Vast difference in distribution of social classes in the Southeast and Northeast. So similar strategies and products will not have the same result and might also vary vastly from the expected result especially in the Northeast Its brand Campeiro is perceived to be low on quality since it is also low priced High availability of substitute products OPPORTUNITY: Tap the niche market i.e. the untouched low income sector before the competitors penetrate there Change the positioning of detergents in the minds of the Northeasterners so as to increase the use quantitatively Make use of the high frequency of washing tendency in the Northeasterners which would improve product sales in this area Omo has the highest Top-of-Mind-Awareness amongst the Northeasterners (approximately 70%). This can be used as a way to generate awareness about Unilevers other brands and also for the product which needs to be directed to the lower income consumer segment (exhibit 8) Improvement in Brazils overall economic performance thereby improving the purchasing power of the natives and especially the lower income consumers Adopt appropriate strategy targeted at the lower income group so that Unilever successfully manages to tap all the classes of people Introduction of more technology based and innovative products like Omo THREATS: Rapid growth and improvement of PGs RD and marketing expertise Northeasterners manner of using detergents is different from the Southeasterners. As per this logic the use of detergents is less with the Northeasterners Preference of laundry soap over detergent powder in the Northeast. This would pose a challenge to the lower income consumer segment product which the company wishes to market Competitor brands like Bold, Pop and Invicto are direct competition to Minerva and Campeiro with regards to quality and price There is almost equal market penetration of the competitors brands with Unilevers brands. For e.g. Invicto, Ace, Campeiro (penetration in the range of 60-80%) Introduction of local products by smaller companies with better distribution Price war with other giants like PG UNILEVER IN BRAZIL As given in the case study, Unilever in Brazil has a strong 81% market share by means of its three brands: Omo, Minerva and Campeiro. Question at hand is Whether or not to market detergents to lower income consumers in Northeastern Brazil and How to go about it The lower income segment isnt tapped by any of the giants of the detergent industry hence it provides opportunity to the company for growth in this segment. Also there is a need for good products matching the flagship brand Omo combined with affordability as clearly seen by the example stated about Maria ConceiÇà £o. TREND IN BRAZIL: As per case study it is known that Northeasterners believe bleach is a must for removal of stains; detergent powder is used only to make the clothes smell good. For the Northeasterners cleanliness is perceived as important despite of their low income survival. Cleaning of clothes for them is also seen as a measure of dedication of the woman of the family. Hence the challenge is to change few age old perceptions and yet successfully make a mark in the lower income segment. For this Unilever will have to convert the laundry soap users into an Omo class user. This is a long term strategy but yet a feasible one. WHY CHOOSE LOWER INCOME GROUP: Enter lower income group segment before PG penetrates there Detergent market in this segment will always be a cash cow Need gap analysis shows that there is an existing need for good detergents in this market IMPLICATIONS OF MOVE: SHORT TERM IMPLICATIONS: First mover advantage, shift of investment of money in low price brand from premium brands LONG TERM IMPLICATIONS: Market leader in low income detergent market, without a shift in Omo customers the new brand will be able to attract lower income customers WHAT SHOULD BE DONE? There are various options with Unilever. Namely, Launch a new product in the market targeting the lower income consumer without cannibalizing its own premium brands extensively Reposition one of its existing brands Have a cheaper version of Omo/Minerva Carry out an extension of one of the existing brands I believe that Unilever in Brazil should carry out PRODUCT LINE EXTENSION. Hereby they should introduce an additional item in the same product category. Unilever should have an extension of its brand Minerva named Minerva Progress (similar to Omo Progress which removes difficult stains without bleach and laundry soap). Minerva Progress should be positioned between Omo and Minerva PROS: The positioning of product between Omo and Minerva will help gain visibility Can promote positively using Unilevers brand name Good market penetration of Minerva as a brand  [1]   CONS: Minerva as a brand is perceived to be a medium quality brand with less Top-of-Mind-Awareness  [2]   Fierce competition with PG brands like Bold and Ace WHY EXTENSION OF MINERVA: Not possible to have a low cost product under the Omo brand since this would confuse the consumers about the original Omos credibility Launch of a new product will not be cost effective Having an extension of Campeiro might not be successful due to the original image of the brand as a cheap quality brand Repositioning of any of the top brands might confuse the consumers and Unilever might lose its loyal customers Minerva having a good market penetration can perform well if the positioning for the extended product is done appropriately. Also as per Exhibit 8 the consumers in the Northeast have good knowledge about the Minerva brand (rated second after Omo). Hence the company should capitalize on this fact and thereby build a route to tap its lower income segment by using the brand name. A MARKET RESEARCH SHOULD BE CARRIED OUT TO UNDERSTAND THE RANGE IN WHICH THE CUSTOMERS WOULD BE WILLING TO SPEND MARKETING MIX OF MINERVA PROGRESS: PRODUCT: A new formula should be produced to match the requirements of the customers and at the same time not increasing the cost Product should have attributes as per requirement of the lower income segment especially cleanliness, whitening and productivity  [3]   Along with price the product should match the six key attributes important to this segment. Formulation should have more emphasis on stain removing capability while keeping Minervas original features intact like perfume and softness The product should be made available in various sizes and types. This would be apt for customers who do not use a large quantity of product per month. This would also give a notional feeling to the customer of having spent less Use of packaging other than cardboard boxes e.g. plastic sachet PRICE: The price of the product should be affordable for the lower income consumers The company is increasing the cost on formulation and nullifying it by cutting down on packaging charges The product should be such that it is priced less than Omo and Minerva itself but a little more than Campeiro Unilever should adopt PENETRATION PRICINGfor its product whereby the profit margin for Unilever would be less but it would maximize unit sales and increase market share in this segment Adoption of penetration pricing would also discourage the competitors entry Also initially Unilever can have an INTRODUCTORY PRICE for the product which would encourage people to purchase the product SUGGESTION: Unilever can also get into backward integration to reduce its cost thereby managing to produce low priced products PLACE Unilever should sell its products at all places in the Northeast Since the big shopping malls are perceived to be expensive it should display its products at local stores Unilever should display Minerva Progress along with Omo. This is because Omo itself has a good image that even this product will be highlighted to all the customers PROMOTION Product should not be advertised as a product meant only for the low income group since this might create a negative impression about the company Medium like hoardings, radio, television should be used Above the line promotion should be emphasized on more than below the line advertising Sales promotion activities should also be carried out heavily which are directed at the customers DISTRIBUTION: Intensive distribution should be used to make the product available extensively in all the retail outlets To target the lower income segment Unilever should adopt the Specialized Distribution method as given in Exhibit 13 PUSH STRATEGY: Initially a push strategy should be used wherein the product is pushed at the customers and made widely available to them. Then depending on the demand forecasts a push-pull strategy should be used. POSITIONING: FRAME OF REFERENCE: Detergents POINT OF DIFFERENCE: Quality with affordability POSITIONING: Attribute and benefit positioning STATEMENT: THE MORE THE BETTER OR THE LESSER THE BETTER.WE GIVE YOU BOTH; MORE QUALITIES FOR LESSER PRICE! PERCEPTUAL MAP: 200 MINERVA PROGRESS OMO 200 0 100 ACE BOLD PERCEIVED QUALITY PRICE INDEX 100 CAMPEIRO POP INVICTO MINERVA = UNILEVER = PG = ASA

Thursday, September 19, 2019

Free Huckleberry Finn Essays - Inappropriate for Children :: Adventures Huckleberry Huck Finn Essays

The Adventures of Huckleberry Finn - Inappropriate for Children The Adventures of Huckleberry Finn by Mark Twain is, not and should not, be considered a child's story. A story like this may corrupt a young child's mind. It deals with adult themes and concepts that are generally not suitable for young children. Als o, if used as a child's story it may confuse them or give them the wrong idea about slavery and the terminology of the time. First of all, The Adventures of Huckleberry Finn is extremely inappropriate for children because it may put bad ideas into a young impressionable mind. At the young age of about twelve, Huck is roaming around the woods all by himself and later on is flo ating aimlessly down the Mississippi River with a bunch of criminals. Huck is living what may appear to the children to be a very exciting and glamorous life. Most parents would never steer their children the wrong way in life, don't want to tell childr en about a kid around their age or little older than they are that is homeless and basically cheating and stealing to survive. This novel explains in depth about various scams such as the Wilks brothers scam, and the teaching schools like the dancing sch ool or "yellow cution". In addition to the royal nonesuch plays which teach children that all you need to do is take the money and run like the King and the Duke did. After reading this novel the majority of children won't go out and try to scam their n eighbors. However, it may seem like an appealing lifestyle for them. It may also give them the impression that being a con man for a living, or being homeless and wandering is a wonderful and glorious carefree lifestyle, and because your Mommy or Daddy tells it to you, it must not be the wrong thing to do. In addition to giving the wrong idea about life, it is a brutal and vulgar book that children should not be exposed to. There are a couple of deaths like when Colonel Sherburn kills a harmless town drunk named Boggs. Earlier on Huck is staying with a the Grangerford family that is in the middle of a feud with the Shepherdson family.

Wednesday, September 18, 2019

Before Iran-Contra :: essays research papers

Before Iran-Contra: The Development of Latin American Foreign Policy During the Reagan Administration When the Reagan administration first took office early in 1981, many of its key members wanted to make a move as soon as possible in response to the growing realm of Soviet power in the world. One area that the U.S. felt a lot of pressure from was Latin America. Even before the advent of communism, US influence in Latin America was always a touchy subject. As early as Teddy Roosevelt’s term as president, the US began a course of foreign policy that protected US investments in Latin America. While being decidedly pro-imperialistic in the dealings with these small neighbors, Roosevelt created a â€Å"dollar diplomacy† relationship and resorted to a devious policy of â€Å"preventive intervention† in dealings with Latin America. Not surprisingly, there were not many American supporters in those countries, except, of course, for the American companies exploiting the native populations to maximize profits. But not until the late seventies, with the threat of communist expansion into Central America, did the US again focus their attention on Latin American foreign policy affairs. From the beginning, the Reagan administration displayed concern about Nicaragua becoming another Cuba. Nicaragua showed signs of becoming an armed camp from which trained guerillas would be sent into the neighboring countries to start revolutionary movements, and the US began to think that their only choice was military intervention. But support for military intervention was not very popular in the US among the public and legislature. The first Boland Amendment of 1982 capped the US monetary support for the contra rebels, and in successive years, amendments to the Boland Amendment dropped that number dangerously low. Congress remembered the lessons of the Vietnam War, and wanted to avoid the slow, steady build up to all-out war. Also, many of Reagan’s most trusted advisors were leftovers from the Nixon era. They had watched Vietnam fall shortly after the U.S. withdraw, followed closely by Laos and Cambodia, and the situation in Nicaragua seemed eerily familiar. Cringing at the memory of leaving millions of South Vietnamese American supporters to suffer a dismal fate at the hands of the NVA and People’s Republic of Vietnam, the Reagan Administration was careful not to get so involved in the situation that they could not wash their hands of it if necessary. Therefore, the US’s plan for challenging communism in Latin America changed.

Tuesday, September 17, 2019

Declaration For War In 1917 Essay -- essays research papers

Declaration for War in 1917   Ã‚  Ã‚  Ã‚  Ã‚  Welcome fellow Senators. We are here today to discuss what the United States should do following Germany’s announcement of unrestricted submarine warfare and the sinking of the three American merchant ships. A resolution is put forth in front of the senators. The first section of the resolution says that: The U.S. Government authorizes President Wilson to use the Armed Forces of the Unit6ed States to wage war against the Nation of Germany. The second section says that: The U.S. Congress supports the president’s request for a declaration of war against the Nation of Germany. I fully agree with this resolution 100%. I agree with war against Germany, as I have said ever since the sinking of the Lusitania.   Ã‚  Ã‚  Ã‚  Ã‚  All this had started back in February of 1915 when Germany had stated its War Zone Policy. They said that neutral ships may enter the war zone at their own risk. President Wilson’s reaction to this was that the United States will take action if American lives or property are destroyed. In May of 1915, the Germans had torpedoed and sunk a British ship, The Lusitania. On that ship were 128 Americans, that had been killed. Instead of declaring war, which I had wanted, President Wilson sends out demands to the Germans. He demands a formal apology from Germany, money damages to the families of American victims that boarded the Lusitania, and he had made a remark that said, â€Å" The U.S. Government shall demand that the German Government pledge to follow international law with regard to the use of their submarines. Any future violation of international law shall be regarded as a deliberately unfriendly action against the United States.† After this, Presi dent Wilson asks for an increase in military spending, but the Congress had refused. The Germans abide by this for 10 months. After these 10 months, in March 1916, the Germans had sunk another ship, the French fairy boat, The Sussex. 5 Americans were killed in this sinking. Instead of declaring war, like I had wanted again, or even breaking diplomatic ties, President Wilson threatened to break diplomatic ties with Germany. The Germans issue the Sussex Pledge. In this, they promise not to sink passenger ships and merchant ships without warning and without saving human lives. They abide by this pledge for 10 months. After that, Ger... ...at he believes that the United States would be going to war for Wall Street. He says that American corporations want this war. They have sold over 300 million dollars worth of munitions to nations of war, and if the United States would enter the war, they would be in financial heaven. I do not believe, as an American citizen, that we would be going to war for Wall Street. We would be going to war for national pride, because the Germans had killed innocent civilian lives of neutral nations, and because the Germans had violated international law numerous times. I do not agree, at all, with Representative Lindberg.   Ã‚  Ã‚  Ã‚  Ã‚  My fellow Senators, I remind you again my reasons for going to war. For national pride, for the killing of innocent American lives, for the violation of international law, for the plot of war against the United States, and because of the increasing public opinion for war. We have given Germany 4 too many chances, which they had totally violated and taken advantage of. It is finally time to do something about these â€Å"unfriendly actions† taken against us. Again Senators, I urge you to vote â€Å"YES† to this resolution and declare war against Germany.

Project on McDonald’s Corporation Essay

Introduction and Background In 1940 two brothers Dick and Mack Macdonald opened their own restaurant. Eight years ago the first concepts and rules of fast food production and sales were formulated by them. Initially the business was created in a such way that everything should be very fast and effective. Brothers spent much time elaborating the layout of the kitchen in their first restaurant, so  they achieved the goal. Inspire of the fact that later they sold their business and their family no longer the owners of it, nowadays mcdonalds have the same efficient system of production and sales that it is able to introduce and maintain all over the world using different strategies and methods. External Environment External environment is a bunch of various outward forces that may have a great impact on the company’s performance. The external environment of every company comprises of three levels: the general, industry and competitor environments. The integration of information received from these environments helps to identify and shape the company’s strategies. Thereby, in order to understand what hindrances company faces or may encounter in the future, it is essential to analyze all the levels of its external environment. It was mentioned earlier that the headquarters of McDonald’s locates in the U.S. so we will analyze general and industry environments in this region. General Environment The general environment is usually examined by the analysis of 7 segments: demographic, economic, political/legal, sociocultural, technological, global and physical environment segments. First of all, the demographic segment is concerned with the population structure and Ã' omposition. The USA’s population is estimated at 313 286 000 people in 2012. By analyzing population composition, it can be said that there is very high level of immigration. Moreover, it can be said that the birth rate is sufficient: 13.68 births/1,000 population in 2012, according to CIA World Factbook. Thereby, these statistics help to understand that the region is quite profitable and comfortable to operate in due to the large population size and excessive number of potential employees. Last but no least, according to U.S. Census Bureau, the median household income during period of 2006 to 2010 is $51914 which is quite high. Secondly, the political/legal segment is quite important for the analysis because the industry is highly contingent on the different kind of taxes imposed by the governments. McDonald’s  Corporation is obliges to pay business taxes, payroll taxes, Food Product Association taxes (19% of the total profit and 19% in the price of each product) and health and social insurance for the employees. The changes in government’s tax policy may utterly affect the company’s revenue. As regards the economic segment, one of the major challenge for fast food industry is that to keep the price is low for the customer. However, it is quite hard because nowadays the USA is still suffering from the financial crisis which can be a possible reason to decrease in outside food consumption in a whole. The dimension influencing the fast food industry the most is the sociocultural. The reason is that the industry is dependent on people’s preferences and opinions that’s why even tiny changes are crucial. From 2000 to 2002 McDonald’s profits dropped from $1.977 million to $893 million. It was caused by the increase of customer’s health-consciousness and fears of obesity, as a consequence, some customers prefer more healthier options which offer a greater variety of food for health conscious customers. Furthermore, it is quite important to devote attention to technological segment because the technologies always mean faster operation and cost minimization. McDonald’s uses different modern appliances to prepare its food without many dangers and in a quick way. Moreover, the majority of McDonald’s restaurants provides free Wi-Fi. In addition, McDonald’s improved the technology of its supply chain management. Regarding the global segment, it should be highlighted that most U.S. companies are focused globally which means that they operate in many different countries. McDonald’s is not an exception. It is located in 119 countries and is known as one of the most spread fast food restaurants’ chain. Last but not least, nowadays more and more companies are concerned with social responsibility and environmentally friendly policies. Industry Environment The industry environment is usually analyzed by Porter’s five forces model. Firstly, it is the Threat of New Entrants. The threat of new entrants in the fast food industry is high because there are no legal barriers which would keep them from entering the industry. The major barriers in which a firm faces in the industry are the economies of scale and the access of the distribution. In order for a firm to enjoy success in the industry, they must spend a large amount of capital on advertising and marketing. The industry is very competitive because firms are always attempting to steal customers from each other. Access for distribution is crucial in the restaurant industry because if the customer can’t see you or access you easily it’s possible that they won’t go out of there way to eat there. Franchise options also make is easier to enter the market, for example Subway has built their strategic plan around franchise options. Therefore, initially the only cost to enter the market is the starting capital required to open a restaurant. However, it can cost upwards of millions of dollars for all the equipment, licensing, and the property. This costly barrier is the most probable reason that people do not enter this business. The food-service industry doesn’t have any exit barriers, which allow firms to easily leave the industry if they’re not successful, at virtually only the cost incurred. The second force is Bargaining Power of Buyers. McDonald’s, and the industry, has attempted to gain market capitalization, by keeping the customer satisfied, due to the fact there are relatively no switching costs. For this reason, they have adopted the slogan, â€Å"the customer is always right.† The industry must try to maintain a hold on the market by conforming to a changing society as well as maintaining high quality. One of the industry’s most recent concerns is that of creating a healthier society and prevention of obesity. McDonald’s corporation has faced previous law suits on being held accountable for obesity, similarly following the litigation process of cigarettes and tobacco companies. The courts ruled against this issue in McDonald’s favor, making this a remote future risk factor. McDonald’s has had to paid legal fees in order to defend itself in this type of litigation;  however, even with this incremental cost they are still achieving a significant rate of earnings growth. In addition, McDonald’s, in it’s effort to be a more socially responsible corporate citizen by supporting a healthier society, has developed â€Å"light† and healthy menu items in order to give customers additional eating options and in doing so, broadening the array of its customer base while offering it’s existing customer base with healthier menu options. Thirdly, it is Bargaining Power of Suppliers. It can be said that McDonald’s has a large bargaining power because of the fact that they spend 4.852 billion dollars in food and paper in 2004. This can be argued that the companies that McDonald’s buys from could be largely dependent on McDonald’s business. Although in recent years the industry has had a small problem with beef, because of the outbreak of the mad cow disease. This problem raised the cost of beef in Europe tremendously but the cost actually went up around the world because of the beef shortage in Europe. In this case it can be argued that the suppliers of beef have a strong voice as well. The suppliers that sell to McDonald’s have a strong voice also because of the fact that the switching cost for McDonald’s as a whole would be so tremendous that they would not want to make that change, so any problems or disputes would be worked out with there suppliers. Also, with the competition and the number of buyers in the market place, losing a large company like McDonald’s could destroy any supplier but there are other prospects out there to buy that product like Wendy’s, Jack in the Box, Burger King and a few others that they may be able to salvage there losses. As for the paper goods that McDonald’s buy from the manufacturers, if McDonald’s were to change manufacturers the supplier could easily change there manufacturing to note book paper by just readjusting the machines but it would come at a great cost. The fourth force is Threat of Substitute Products. McDonald’s is known for their famous French Fries, Big Macs, and Happy Meals. Competitors of the industry also try to compete with similar products; therefore, leading to price wars. McDonald’s created a Dollar Value Menu, in response to competitors such as Wendy’s 99 cent menu. Overall, the industry has tried various product differentiations in order to accumulate greater market share, but most consumers are drawn to the classics for which the establishment is known for. However, growing concern  to achieve a healthier society has led McDonald’s, as well as other competitors, to make extensive menu changes, in order to conform to a more concerned society. McDonald’s is doing more and more to compete with health focused restaurants like Subway. Nutritionist and other leading experts have been hired to join the McDonald’s team in order to ensure that the correct items are added to the menu, while still keeping and improving the classics that they are famous for. For example, the chicken nuggets that we all grew up on are now 100% white meat. McDonald’s is flexible in their menu to conform to the changing tastes of society, but they always serve with a smile! The fifth and final force is Competitive Rivalry within an Industry. Currently in the fast food industry, there is intense competition for growth in the market. The market growth is rising because of the convenience factor and busy consumers not having enough time to cook a meal. The restaurant industry is also growing rapidly due to opportunities in other global markets. In McDonald’s case, they actually have a competitive advantage because they have already entered many different countries and are succeeding in these countries. Each firm within the food-service industry is susceptible to losing customers because there are relatively no switching costs for consumers, therefore the industry has to rely heavily on their brand image and quality of products. McDonald’s has a number of competitors; however they are currently the leader of the industry in market capitalization with a cap of $39.31 billion. Competitor Analysis It is almost vital to know the competitors in your industry in order to be able to overtake and surpass them. The top competitors of McDonald’s are Burger King, Wendy’s, KFC and Subway. Burger King Burger King is the second largest hamburger fast-food chain in the world and is the number one competitor for McDonald’s. Burger King has 11,400 locations in 58 countries and derives 55 percent of its revenue from the drive-through window. Burger King reported 1.72 billion in 2002 in revenue which is a 17 percent increase compared to a 4 percent increase reported by  McDonald’s over the same period. Burger King’s distinct assets include the unique Whopper with its one of kind charbroiled taste and the company policy of preparing the hamburger any way that the customer wants it. Burger King has distinguished itself over the years in many ways including being the first in the fast-food industry to enclose its patio seating in 1957 thereby offering customer indoor dining experience. Burger King also differentiated itself when it installed the drive-through window in its restaurants in 1975. In addition to the Whopper Burger King also offers a few set items on its breakfast menu that differs it from it competitors including the Croissan’wiches and french toast sticks. The rest of the menu also offered the unique veggie burger and chicken Caesar salad. Wendy’s Wendy’s is the third largest fast-food chain with 9,000 stores in 33 countries world wide. In 2002 they reported 2.73 billion in revenue which is up 14.2 percent from the previous year. Wendy’s offers several unique items including the Frostys and Spicy Chicken Sandwiches as well as healthier items such as salads, baked potatoes and chili. Wendy’s has also distinguished itself through the creation of the special value menu with all items on it under a one dollar. Wendy’s also owns several small companies including Tim Horton’s and Baja Fresh Mexican Grill. It plans on increasingly using acquisitions of smaller brands to further growth. In next decade Wendy’s plans to add between 2 and 4 thousand new stores worldwide. One important weakness of Wendy’s is the lack of easily recognizable product compared to McDonald’s Big Mac of the Burger King Whopper. KFC Strategic Objectives: KFC has the strategic objectives of expansion along with profits and sales growth. KFC has also been applying its strategies at improving services and making them more and more customer friendly. It has not only been customizing its menu according to the countries that it has been operating in, it has also been trying to cater to different ethnic groups like African Americans and Hispanics. Such types of strategies are focused on increasing the customer base by better customization of products. Other than the  traditional eat-in restaurants, KFC has also been expanding into non-traditional facilities like shopping malls, hospitals, universities, stadiums; office buildings etc and a number of strategies have been formulated to aid this kind of expansion. Competitive Advantage: A very strong financial background is one of KFC’s competitive advantages. KFC has been functioning as a multinational corporation for several decades. As a result, the company is familiar with the logistical and quality problems which accompany operating an international food operation, and has demonstrated that it can work with host countries and businesses within the host country to develop a strategy which works in the most cost effective way. With the passage of time, KFC has developed another very important competitive advantage for itself — Environmental Friendliness. In March 2009, the first eco-friendly green KFC was opened in Northampton USA. The restaurant is designed according to environmental goals that include cutting energy and water consumption by 30 percent and reducing CO2 emissions. Operations at the new site are also expected to reduce waste and the amount of rubbish sent to landfills; the restaurant composts and recycles other waste, grease and used cooking oil. Other than this, in an effort to reduce its packaging by 1,400 tons, KFC is now switching from cardboard to recyclable and biodegradable paper wrapping for some of its products. Subway Strategic Objectives: The strategic objectives of Subway focus on creating a global strategic plan to enable Subway restaurants to succeed internationally. Other than this subway is intent upon introducing the concept of ‘healthy fast food’. Sandwiches of Subway have been included in diet plans by experts. Subway’s stand regarding obesity in children is not new to its customers. Strategies at Subway are not only about a really ambitious increase in franchises all over the world but they are also about making the food more and more appealing to the health conscious customers because health conscious attitudes, according to the experts, are here to stay now. Competitive Advantage: One of the greatest competitive advantages that Subway was born with is its healthy menu. The salads and sandwiches appeal much more to the people as compared to fried chicken, burgers, fries and pizzas. With its advertising and promotion, Subway has long been highlighting its healthy food in advertising and promotions and with the passage of time, it has established itself as a healthy brand. Another competitive advantage that subway enjoys is the fact that along with traditional locations, Subway restaurants can be found in more than 4,000 non traditional locations such as food courts, health clubs, hospitals, universities, amusement parks or just about anywhere. In fact, Subway restaurants can even be found in automobile showrooms and Laundromats! This global presence is indeed a sustainable advantage for Subway and needs to be managed properly. Subway’s fresh food is also a competitive advantage because unlike its competitors like McDonald’s it allows its franchisees to choose their own food suppliers, to ensure they can access the freshest ingredients. Resources, Capabilities and Core Competences Resources †¢ Human resources McDonald’s is does its best to reward outstanding employees for exception work. It is also putting more emphasis on its hospitality training to ensure a friendlier and customer focused support staff. †¢ Brand loyalty The long queues to McDonald’s in food courts is the best illustration of high level of brand loyalty, that company continues to develop. In advertising campaigns McDonald’s uses the slogan â€Å"I’m lovin’ it† which it there attempt to make McDonald’s an easy choice for families. They have also started using popular music to appeal to youth population. †¢ Real estate It may be surprising, but real estate ownership is one of the significant Mcdonalds resources. It is estimated that McDonald’s generates more money from its rent than from its franchise fees. One of the ways in which  McDonald’s receives funds from its franchises is in rent money. McDonald’s owns all property in which a McDonald’s outlet was built regardless if the location is a franchise or company owned. Capabilities McDonalds used to have several capabilities, among them hiring process and employees training and product innovation.  Ã¢â‚¬ ¢ Hiring process  It is complicated and systematic. It comprises of 3 main stages. 1. Initial interview and psychometric evaluation. On this step the candidates undergoing simple interview and tests evaluating their verbal and critical reasoning 2. Job evaluation. On this step candidates have 2 days practice in a restaurant that allows them to look at McDonalds as a future employees and HR team to assess candidates performance 3. Final interview. The last stage of hiring process includes overall interview and decision about the candidates is made. Taking into consideration staff training, McDonalds has many training programs on every level of restaurant. Training forums are made for basic workers and they start from the very beginning of working in the restaurant. They are designed to help employees with their communicational skills and encourage growth in the company. Other programs are created for managers of the restaurants, such as Basic Shift Management, Advanced Shift Management, and Systems Management Course . Their main objectives are: providing information about internal standards and procedures, teaching data analyses and strategies of identifying and solving different problems. For higher levels employees McDonalds has internship programs for students and recent graduates. Programs let them practice in different spheres of companies performance such as Information technologies, Marketing, Finance and others. Other McDonald’s project – Leadership Development program is based career planning, Individual Development plans, career maps, succession planning, learning activities and others. †¢ Product innovation The main resource developing product innovation strategy are full-time chief working in studios in Munich, Hong-Kong and Chicago. Moreover, localization of products also plays important role in development of innovative products. For example, in India Beef and pork products are not offered due to Indian religious beliefs. What is more, meat and vegetarian meals are prepared in separate areas of the restaurant again as a result of religious laws about preparation of food for vegetarians and meat-eaters. There is an Indian version of the Big Mac in India is called the Maharaja Mac and made with two grilled chicken slices, onions, tomatoes, cheese and a spicy mayonnaise. In Taiwan company introduced kao fan (literally â€Å"baked rice†), that resembles a burger with rice patties in place of buns. Finally, in Philippines McDonalds serves even spaghetti with in sweet tomato sauce, topped with cheese. Core Competences †¢ Produce quick cheap food to large number of customers With this concept, they are able to expand into many countries be the largest fast-food chain in the world. The process of production is the company core competence. Initially it was designed in such way as to be fast and very effective. There is precise guidance of how to do every activity. Mcdonalds pioneered in the systematization of its processes. Efficiency of operations and synchronization is the basis for success of the company. Also, it may be said, that burgers and fries are themselves McDonalds core competences. McDonald’s classic burgers has always taste the same in any outlet in the world. This consistent quality assures customer’s trust and loyalty to the product. It also provides an assuring brand experience. †¢ Structure Some specialists consider the unique organizational structure of McDonalds as its core competence. McDonalds never used rigid hierarchical organizational structure, that company managed to sustain over the years. It uses â€Å"freedom with framework† mantra, keeping structure decentralized. It allows local managers to make decisions by themselves. It also plays significant role in localization of menu due to local needs. Business-Level Strategy The business level strategy McDonald’s uses integrated cost leadership and differentiation. It means the products of mcdonalds is the cheapest on the market and more over McDonalds does its best to make them absolutely different from what others produce, using localization and launching new products almost every year. So the target of its strategy is to meet the needs of buyers whose preferences are distinctively different from others. So MD deals with the costumers who want very fast service with good quality. And it is different from the visitors of not fast food restaurants. The product line is customized to meet their needs. The marketing emphasis is put on communication and market analysis again to satisfy their needs. Finally the way to sustain strategy is remaining dedicated to serving one niche and be better than competitors in everything and do not dilute the brand image entering other niches. Corporate-Level Strategy Corporate-level strategy is a strategy which is aimed at the long term position of a business. A corporation or business can use plenty of methods to develop a corporate level strategy, however, basically, there are four main strategies that almost all businesses use which are: †¢ Concentrate on a single business, other words, business stays on the same industry on purpose to create a strong competitive position within the industry. †¢ Diversification; which is to move to a new business to provide a new good or service. There are two kinds of diversification, related diversification which is to compete in similar area/industry of activities to build a  synergy and unrelated diversification which is to enter a new industry to compete and build a portfolio strategy. †¢ International Expansion. This means some competition in more than one market to serve the needs of the other markets/countries.  Ã¢â‚¬ ¢ Vertical Integration. This is a way to cut costs by providing your own ways of inputs, backward vertical integration and your own channels of distribution and selling outputs by forward integration. Therefore, now let’s move directly to McDonald’s corporate-level strategy. Nevertheless, before we start to consider all the main points of this particular type of strategy, some overview details will be given. Mc Donald’s is a fast food restaurant operating on a global basis. It is operating on 119countries world wide. Mc Donald’s was opened for the first time in Cyprus in June 1997 and by now there are 16 Mc Donald’s restaurants in Cyprus. So, Mc Donald’s uses corporate level strategies like all other global basis corporations in order to reach corporate goals to be cost effective. MC Donald’s is a business which only concentrates on a single task which is the fast food business industry as stated by Dr. Weber, (2000). This special issue someday will help a lot the business to concentrate directly on one single task and get not only more power and market share, but consumer loyalty also in result. This happens because of the fact that they will run many strategies to find the best solutions of the consumer needs and preferences. However this can be very risky if the business fails to meet the right needs of consumers and therefore will not be profitable and as a result will close down due to the possible bankruptcy. Firstly, as it was stated in Washington post (2005) MC Donald’s diversifies its operations in many ways. Thus, the company uses related diversification in order to produce the same products which are burgers and salads basically, but they provide just an enormous number of choices, such as: Big Mac or Mac chicken, different kinds of salads. Moreover, McDonald’s operates in more than one geographical area but still performing the same task. Also it has opened MC cafes all around the world. McDonald’s gets many advantages by doing related diversification, firstly, if there are two Mc Donald’s restaurants in a city, then the two firms can build a synergy by co-operating with the right to use some special facilities such as the advertisements, suppliers and sometimes events, for instance, charity events. Secondly, as stated by Ricky, W (2003), the firm depends less on a single product, so it’s less vulnerable to competitive or economic threats. Other words, Mc Donald’s having variety of products like burgers, salads, ice creams and drinks is not being threaten of competition because this particular company has diversity in its products, for instance, Mc Donald’s Greek Mac makes it more stable and steady than such rivals as Burger King because the rivals do not have such product. Thirdly, it allows the firm to use technology or expertise developed in one market, for example, fast food to enter a second market more cheaply and easily e.g. MC Cafà ©. However, the only disadvantage that Mc Donald’s faces, is the cost of coordinating the operations of the related divisions. In 2001, McDonald’s launched a new venture by opening two hotels in Switzerland (Zurich and Lully) under the name â€Å"Golden Arch Hotel† Stefan, M (2005). This is a good example of an unrelated diversification because of the fact that Mc Donald’s is taking risks of its business from a single activity to many others like taking part in the Hotel industry. Unrelated diversification provides a portfolio for Mc Donald’s because it is operating on two absolutely different industries and the risk is reduced because if one of the two markets that the business has activity in fails to grow successfully, then the growth of the other market will cover the costs of it. Secondly, such strategy is less vulnerable to competitive threats because any given threat from a competitor is likely to affect only a portion of its total operations. However, unrelated diversification is very difficult to manage since the company has to deal with two markets and their strategies, plans and organization and coordination of each specific market which it is  dealing with. McDonald’s has introduced the American concept of fast food to many foreign Markets as stated by, Francine L, (2005). Moreover, the firm has by now, expanded throughout most of the world by operating on 119 countries. †¢ Thus, Mc Donald’s is known globally today because it is expanded internationally. †¢ Mc Donald’s is using multi-domestic strategy to serve each nations needs. It is customizing the fast food menus for each specific country/nation to suit the people’s wants. For instance there is Greek Mac in Cyprus and Greece. †¢ The advantage of this strategy is that the company is targeting a nation very effectively and gains market share by attracting the customers whereas, the cost of production will increase in order to add a new feature to the firm and the prices will rise to cover the costs. As stated in â€Å"Getting the Facts Straight† leaflet of Mc Donald’s, the firm is working with top suppliers and independent experts on health and safety. The Cyprus Mc Donald’s restaurants’ inputs such as meat, is ordered regularly from Italy with the highest quality and when they enter the island,  it is supplied to all the franchise branches on the island by Mc Donald’s vans and trucks. This shows that Mc Donald’s owns its inputs and has its farms to breed cattle and grow vegetable and potatoes. Therefore, this allows the company to diminish costs by doing vertical backward integration. Moreover, it maintains a guaranteed time, quality and amount of supply to the restaurants when required. The drawback of vertical integration is that, at the beginning of the integration huge amounts of capital should be invested in to the backward integration. Mc Donald’s business has been working since 1956 till now successfully and still operates under these corporate level strategies. Cooperative Strategy A cooperative strategy means interaction between two or group of companies which work together to achieve a shared objective. By measures which are  included in cooperation, companies can create value for the customer at a lower cost or with more benefits than it is able to do by itself. The primary type of cooperative strategy used is strategic alliances. Such kind of cooperations means that companies partly share their resources and capabilities between each others to produce new resources and capabilities, e.g. gain shared objectives. Such corporations as McDonald’s, Coca-Cola and Disney are the biggest multinational corporation with outstanding profits.But how can they enlarge their profits with the same amount of resources? The answer to this question is cooperation. Let’s look through some strategic alliances formed by McDonald’s. Alliance with Coca-Cola McDonald’s alliance with Coca-Cola has  «no piece of paper to fall back on—just  «a common vision and a lot of trust », according to Mr Ivester (Coke’s chairman) ». On setting up in the burger business in the 1950s, one of Ray Kroc’s first successes was persuading a Coke executive Waddy Pratt to provide him with their drink. Coke’s relationship with McDonald’s goes far beyond than just a supplier – It has helped McDonald’s to go to the new markets all over the world, because Coke is sold in almost twice as many countries as McDonald’s. Michael Quinlan, McDonald’s chairman,  «runs off a long list of areas of cooperation, from banking relationships to equipment design ». There is also very close relations between the members of this alliance at board level. When Coke’s chairman Robert Goizueta died, flags flew at half-mast at McDonald’s around the world. Alliance with Disney The alliance between McDonald’s and Disney has moved â€Å"way beyond doing only movie promotions with Happy Meal toys.† Nowadays this alliance has made enormous amounts of progress, for example McDonald’s being a sponsor of Dinoland, one of Disney’s attraction in Animal Kingdom, has built its restaurant outside this attractions park. This new â€Å"smart McDonald’s† is decorated in DisneyWorld style. The staff wear uniforms which is approved by  Disney, which demonstrates McDonald’s characters. Alliance with Master Card and Visa McDonald’s has announced an alliance with MasterCard and another alliance with Visa USA to bring cashless payment options to McDonald’s restaurants in the US. By this cooperation with MC and Visa, a company has provided more comfortable system of payment in McDonald’s which attracts customers. Alliance with Malls and Gas Stations McDonald’s latest expansion targets call for approximately 3,000 new restaurants world-wide both 2008 and 2009. Two-thirds of new restaurants will be built outside the USA. On the other hand, in the US approximately 600 new restaurants will be so-called satellite units mini-McDonald’s found in malls and especially in nationwide retailer. McDonald’s has formed alliances with Amoco Oil Co. and Chevron Corp. in the US to built restaurants in tandem with gas stations to cover more and more destinations all over the country. Global Strategy McDonalds has initially expanded to international markets in the conditions of strong regulations and overcrowded market in the USA. In the very beginning they offered a standardized products and attracted new clients with clean environment policy and brand equity. Recently the company adapt to new conditions by providing new product line and redesigning retail space in order to meet local needs and tastes. This strategy has allowed McDonalds to adapt quickly to new countries, but at the same time it created a long-term threat of diluting the brand and loosing its association with American culture. For instance, in Europe McDonalds becomes going beyond fast-food conception. In order to compete with coffee shops, McDonalds started offering more comfortable conditions, such as WI-FI and iPods for rent. Moreover, they created new healthier and locally adopted foods. Some specialists suggest, that if the company continue to expand with this strategy, it will be quite difficult to remain recognizable and meaningful brand.  Now it is time to consider McDonalds global strategy in more detail, taking China, South Africa, Brazil and Saudi Arabia as examples of strategy realization. But firstly, it is worth mentioning a few background facts. There is an incredible opportunity to expand in the world. McDonalds annual growth rate is about 1000-1500 restaurants and by 5-10 countries. According to the statistics, the company employed about 2 million people worldwide in 2000. The company adapts easily to new customers preferences by incorporating in the menu pommefrite sauce in Belgium and Holland and special mayonnaise based sauce in Iceland. China The McDonalds strategy in China is vary specific and it is aimed for adaptation to local culture. In comparison with the US, it was important for Chinese clients to focus not only on the food, but also on the restaurants’ atmosphere. That is why in China McDonalds restaurants are very similar to the American coffee houses with comfortable conditions for conversation and meetings. An other part of McDonalds strategy is introducing national tastes in its menu, such as the teriyaki burger. South Africa In South Africa McDonalds decided to focus on high populated cites. The point is to serve people where they eat, shop or play. The companies survey figured out that drive thru facilities are much effective then restaurants themselves, that is why there was made a decision on improving retail spaces. Moreover, McDonalds marketing strategy was concentrated on potential customers with different income level. In South Africa McDonalds has 90 branches spanning all nine provinces. It has 3 000 staff in just 39 restaurants, most working for franchisees. Each new restaurant opening creates as many as 80 new jobs, which is really important in current conditions. Brazil The eighth largest McDonalds market is concentrated in Brazil. Management team here is mostly focused on quality improvement and customer satisfaction and it was awarded for these efforts with Franchising Hallmark of Quality. Furthermore, McDonalds Brazil is one of the best employers and fifth among most admired companies in the country. Saudi Arabia and India The most characteristic feature of McDonalds in Saudi Arabia is that it closes five times a day for muslim prayers. McDonald’s India offers aloo tikki and paneer. And it doesn’t serve beef or pork at all. The Big Mac becomes Maharaja Mac in India. The company created special conditions for vegetarians with separate kitchen, cook and utensils. Moreover, in Ahmedabad the company decided to open an all-vegetarian outlet. Holding in respect Muslim tenets of belief, the company does not serve pork in all Islamic countries. There are two absolutely unique restaurants in the Holy City of Makkah, where Moslem customers are exclusively served by the staff, fully consists of Moslem employees, from the Service Crew to the Restaurant Manager level . And finally, McDonalds efforts have improved the local industries and national economy due to the fact that more than 50% of the products used are manufactured locally and in the gulf regions. Recommendations For Business-Level Strategy The main recommendation in terms of business-level strategy is to remain in the same niche. McDonald’s pioneered the whole concept of the fast food restaurant, that is why it should go to some other businesses, such as higher-level restaurant, because it can dilute their image of best fast food restaurant. For Corporate-Level Strategy Due to the fact that not every family has a direct access to McDonald’s cafes or just their place is too far from the restaurants, the idea to provide fast food to supermarkets. The products will be sold in the special vacuum package, so that it would have their original taste. This way the restaurant will loose nothing because there are only advantages which consist of making extra profit and gaining customer loyalty through spreading their production into the farplaced (far located) regions. For Cooperative Strategy As we have seen in the examples of McDonald’s alliances – cooperation is very efficient way of development. In my opinion, McDonald’s can cooperate with greater amount of companies. However, it should be very selective in choosing partner not to dilute its image. For example McDonald’s can cooperate with Apple: McD’s can provide free rechargers to Apple gadgets in its restaurants, while apple spread some apps by the AppStore. I think that McDonald’s also should create alliance with some attraction park companies, as they’ve made with Disney. Of course it would be more profitable for McDonald’s because of the amount of clients concentrated in one place. On the other hand, ones park logo and symbolic in MacDonald’s is worth it. For Global Strategy In spite of the fact, that McDonalds has great expansion opportunities, it is essential for the company to remember about its strength and to prevent brand dilution by means of concentrating on traditional American fast-food menu and including no more then 30% of specific dishes. Talking about the company’s pros, it is essential to continue developing and improving marketing campaign towards children and adults in foreign countries. In addition, such fresh ideas as creating vegetarian restaurants should be adopted in more countries in order to give customers alternative choice. Moreover. It would be a great idea to install Internet access terminals in each restaurants in order to reduce the amount of lag time between a customer’s orders and pick up of the order. This will show the innovative company level and improve its brand image for customers. Conclusion In the conclusion it is worth mentioning that the best prove of fantastic effectiveness of McDonald’s strategy is the fact that it’s competitors trying to copy its standards and processes to become more competitive at the market where McDonald’s still remains the leader. View as multi-pages