Vermont Teddy Bear Case Essay Example

Vermont Teddy Bear Case Essay Although Vermont Teddy Bear is a company with a rich track record in the business of last-minute gifts, its mission statement lacked its basic goals and philosophies that aim to shape its strategic posture. Vermonts mission statement clearly speaks to someone who is well acquainted with what the company does and what it sells, which is in my opinion a crucial point that the company missed when they addressed its customers. The following points provide an insight on what went wrong when Vermont decided to formulate its mission statement: * The Basic Product the company sells: Vermonts mission statement clearly failed to mention the type of product they sell. By defining the product the company simply distinguishes its offered products from competitive products of similar nature provided by other competitors in the market. * The companys targeted customers In this element, the company mentions who are its customers or potential customers. What will it do to serve them and how will its customers find this company different from the other companies or competitors who provide similar products in the market. Although Vermonts mission statement might have implied that it is currently targeting American customers through :The Vermont Teddy Bear brand represents the rich heritage of the Great American Teddy Bear begun in 1902. , yet this contradicts with the companys current plan in which it intends to exploit international markets, in other words, the company should revise its statement to include potential customers too. * The Technology applied: By defining technology, the company tells its current technology that it uses in making its products i. . whether state of the art technology or hand-made technology. It also tells about the unique ways in which its products are technologically more advanced or distinguished then their alternates. Nevertheless, it is worth noting that the word craftsmanship found in the companys mission statement might tell that the companys products are hand-made, which distinguishes it from other players in the industry, given the fact that most stuffed toys to day are manufactured. The Companys concern for survival, growth and profitability: Vermont failed to fine the means it seeks to survive in the longer run given the fallback they are currently going through. It not merely lists them out but also defines the logic behind them and how will the company strive to achieve them; these goals serve as economic indicators for the companys performance, and hence indicates how far the company is from satisfying the principal claims and desires of its employees and stockholders. The Companys Philosophy: By defining philosophy, the company defines its way of working, its culture, its beliefs and how it sees work to be carried out. it is also an analytical way of defining the norms of which it runs. In my opinion, the companys mission statement had covered the companys creed through the following: We will strive to wholesomely entertain our guests while consistently exceeding our external and internal customer service expectations. * Concern for public image We will write a custom essay sample on Vermont Teddy Bear Case specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Vermont Teddy Bear Case specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Vermont Teddy Bear Case specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Concern for public image is a wide term that includes not only the corporate social responsibility but the overall impact of the actions taken by the company on its image, which in my opinion was totally dropped when formulating Vermonts mission statement. * Companys self concept By defining the self concept, the company shows the outside world its core strengths and the place it sees itself in the future. When reviewing Vermonts mission statement, it is clearly evident that the statement failed to express the companys core strengths in terms of the entrepreneurship capabilities and a robust distribution channels. In light of what was mentioned above, I suggest that Vermont should revisit its mission statement, the following statement will help the BOD in their plans for the company: Become number one instant gift solution in the USA in the next 20 years. We design and manufacture the best teddy bears in America. We satisfy customer needs through product differentiation, we offer exclusive hand-made teddy bears to premium customers as well as providing convenient products to the other customers. Speed and easiness of delivery of our products will be respected along with premium quality. Monthly Measuring customer satisfaction will be our main tool for maintaining our market positioning and for our continuous development for our brand and products. While achieving our mission in owning a profitable business, we will strive to being ethically, legally, and environmentally responsible while remaining fiscally sound. Vermonts external environment consists of three components: its operating, industry and remote environment. In these three environments, there is a chance that one of its external environments may change. All of these environmental sectors affect the companys operations both on the local and international level, and its very possible for change to occur (as witnessed throughout the case study). Operating Environment: Competitors of Vermont Teddy Bear could be subdivided into three categories: * Major plush doll manufacturers such as Mattel and Hasbro were considered competition in this sub segment of the toy industry. * Other bear manufacturers including Steiff of Germany, Dakin, Applause, Fiesta, North American Bear, and Gund, the leading market of toy bears. Variety of other special occasions greetings such as flowers, candy, balloons, cakes and other gift items that could be ordered by phone for special occasions and delivered next day. As for Labor, and given the massive production the company is required to undertake to meet its customers needs especially in special occasions such as Christmas, Valentines Day amp; Mothers Day , the company heavily relied on outsourced home worker s who performed production functions at their homes and hence were treated as independent contractors. Although these home workers/independent contractors allowed the company flexibility in meeting heavy demand as mentioned earlier which allowed them in scheduling their hours of work, home workers were free to reject or accept any work offered by the company which might make the company vulnerable to failure in meeting its customers heavy demand especially in high season sales. The company maintains a solid HR system through a strong built bear culture among employees. The companys manpower do not belong to any unions which eliminates any Labor issues. n the credit side I believe that the company does not face any problem with external financing; the company has two sources of financing, equity through issuance of shares since it is a traded company in the New York stock exchange market, in addition to debt and leasing which can be provided through commercial banks and leasing companies, which in my opinion is not a viable point for Vermont as it already consumed most of its credit li mits lately, comparing with its competitors who had greater financial resources. Historically, the companys focus had been to design and manufacture the best teddy bear made in America, using American materials. This philosophy was modified significantly in 1998 with the companys decision to explore the offshore sourcing of materials and manufacturing alternatives in an effort to lower the companys cost of goods sold and to broaden its available sources of supply, in my opinion such change would diverse the companys dependence on American supplies or raw material, now that it has a wide pool of international suppliers which will give the company a significant bargaining power in terms of cost and quality. Although many teddy bear producers define their product as toy and marketed solely to children. The company marketed its bears as an attractive gift or collectible for both children and adults which enabled the company to penetrate a wide-ranged customer pool, including children, young and old people whether males or females. If the company considers going globally, the company might face problems when addressing global customers, such Anti-Americans who might avoid buying the companys products knowing that it is an American product, especially that the companys competitive advantage stems from their origin, being one of the earliest producers of teddy bears in America. Industry Environment: Barriers to entry into this industry is there, evidenced by the challenges that Vermont along with the other current players face in the market, such as economies of scale, product differentiation, capital requirements and access to distribution channels. Given that both the stuffed toys and last-minute gifts markets are already saturated, I believe that the possibility of entry of a new player to the said markets is quite difficult, unless this new player intends to acquire an existing company to capitalize on its position in the market. For Vermont and as discussed earlier, the company had recently shifted to rely on various suppliers from local markets and different countries in its raw material in an attempt to reduce its costs, yet it was implied that it still relies on an American supplier-who happened to be the only eye maker left in America-in attempt to produce the ears with domestic materials, this might give this supplier some bargaining power to exert on Vermont. Last minute gift customers normally lack the power to force down prices or play competitors off against each other, this is mainly attributable to that Vermonts industry is a fragmented one, and last minute shoppers are ready to pay anything to acquire a gift due to time constraints which disable them to consider or make comparison with other competitors products; they will simply buy the first thing their eyes lie on to buy that gift especially in special occasions and events. Capitalizing on what was said earlier, Vermonts Teddy Bear as a product had several substitutes including toy bears, stuffed dolls or animals, flowers, candy, balloons, cakes and other gift items which in my opinion deserve the most attention strategically. To my opinion, and given that the Industrys competitors are numerous and that the industry growth is slow, Vermont is facing an intense rivalry from its competitors which the company should focus on strategically in the future. Remote Environment: The remote environment is what originates beyond the daily operations of Vermont. The remote environment is made up of five factors that are not influenced by a single company. These factors are economic, social, political, technological and ecological. Although these factors cannot be affected by Vermont, they can definitely effect the operations of the company. These must be all considered by the company when working with the market. Over the next twenty years, there are several changes that might take place in the remote environment. Since technology is not an important factor in this industry the company might disregard it when formulating its strategy. Political factors are quite stable on the local side yet if the company considers going global it must take these factors into consideration, for example if changes occurred in laws and regulations with respect to Foreign Direct Investment (FDI), they must make changes to meet Political standards. Ecological factors also might cause several issues; although the companys manufacturing practices are environmentally sound, other factors might be an issue (for example global warming) given the fact that the company owns and operate a factory at which it produces its products, then the energy used by the company to produce its products must e modified in order to meet ecological standards. To be sustaining in the market, Vermont should encourage the knowledge of the internal environment that affects its business. There are many internal factors that impact Vermonts performance; these factors constitutes of the companys competitively important resources and capabilities. Unfortunately reso urces whether tangible or intangible are scarce by nature and it will be a great challenge for the company to manage their resources in order to gain the competitive advantage. Tangible Assets: The company operates and owns a fully integrated facilities including retail stores, manufacturing and distribution facilities in a 62,000 square-foot building on 57 acres that the company owns; * The manufacturing/production facilities included a state of the art packing and shipping equipment; * The companys call centers had state-of-the art technologies including PC terminals and very high tech telephone switching equipment that allowed the company to handle significant call volume; * The company installed a new telephone system, which improved its telemarketing operations and was designed to accommodate future growth in telephone call volume; * The company had a high-tech shipping system, including state-of-the art multicarrier software so that if a major carrier like UPS went on strike, it could immediately make adjustments; * In 1998 the company succeeded to secure a source of finance amounting $600,000 (in the form of equity investment that was injected by Shepherd Group) which will provide working capital for the company to pursue growth in the Bear-Gram channel and to maximize the benefits of importing raw material; * The company had launched an extensive website including pictures of the product in 1997 where its customers are eligible to place their orders online, which was part of the companys computer network of approximately 250 workstations that linked order entry with sales and accounting systems. Intangible Assets: * The companys name in combinatio n with its original logo was a registered trademark in the United States including The Vermont Teddy Bear Company, Bear Gram, Teddy Bear Gram and Make-A-Friend-For Life; * It owned the registered trademark Vermont Teddy Bear in Japan; * The company claimed copyright, service mark, or trademark protection for its teddy bear designs, its marketing slogans, and its advertising copy and promotional literature; Organizational Capabilities: * The companys manufacturing practices were environmentally sound. The company sought to use the best available materials for its bears; * The companys products were sold with a Guarantee for Life under which the company undertakes to repair or replace any damaged or defective bear at any time; * The companys products were designed in such way to a certain event or occasions, the company even provided outfits to individualize the customers bears or to emphasize certain relevant characteristics of the receiver; * The company was primarily know for its Bear-Gram delivery service, where customers could send the gift of a Vermont Teddy Bear by placing an order through the companys 800 number or online, providing its customers with an instant and spontaneous solution for the perfect gift especial in events and special occasions; * Since its inception in the 80s, the companys main focus was to design and manufacture the best teddy bears made in America, using American materials and labor, which helped the company to build up a strong and extensive custome r base; * The companys decision to explore the offshore sourcing of materials was a brilliant and a dynamic solution for lowering the companys cost of goods sold and reducing the suppliers power over the company; * The company has a wide range of products that suits both premium and regular customers; it has its handcrafted 15-inch classic teddy bears as well as its manufactured bears, in addition to other items related to teddy bears such as clothing, jewelry and accessory ornaments; * The company strove to provide rapid response to its customer orders and complaints. It believed that as a result of the quality of its products and service, it had established a loyal customer base; The value chain analysis (demonstrated below) aim at increasing customer satisfaction and managing cost effectively; it is a systematic approach to examining the development of competitive advantage, it comprises both primary and support activities: Source: pcwin. com Primary activities of Value Chain Analysis are directly concerned with the production or delivery of a product and consist of: * Inbound Logistics: Vermonts manufacturing premises included a state-of-the-art packing and shipping equipment, in addition the company also had a three-year lease on 10,000 square foot of inventory space at a separate location in Shelburne. Exploiting offshore markets for the sourcing of its materials provided the company with a wider base of suppliers which prevented the company from dependence risks; * Operations: despite the companys 1998 move to the offshore sourcing of raw materials and which implied a significant departure from the companys historical position as an American manufacturer who uses almost exclusively American materials, the companys products were still environmentally sound; the company sought to use the best available materials for its bears. The company produced two type of products; its handcrafted 15-inch classic teddy bear for those customers who are interested in an American made product and its manufactured event or special occasion-customized teddy bears for the rest of its customers, in addition to selling items related to its teddy bears; * Outbound Logistics: The company was known for its Bear-Gram delivery services, which enabled the company to provide instant delivery services (either by air or ground delivery services) to its customers throughout the different states of America as well as outside customers such as Canada through a carrier such as UPS. In addition, the company had a high-tech shipping system, including state-of-the-art multicarrier software so that if a major carrier like UPS went on strike, it could immediately make adjustments; * Marketing and Sales: The companys extensive computer network in addition to its new telephone system enabled the company to expand its customer base not only in Ver mont but throughout the rest of the states and the world and provide rapid response to its customer orders which in turn; * Service: The company sought to respond promptly to customer complaints. Each bear was sold with a Guarantee for Life under which the company ndertakes to repair or replace any damaged or defective bear at any time; These primary activities are supported by secondary activities which help to improve the efficiency and effectiveness of the primary activities of the company and consist of: * Firms Infrastructure: it can be subdivided into three main categories: * Organizational Structure: The companys Board members and Executive Officers had solid experience in different fields including marketing, finance amp; investment; * System of Planning Finance: The company managed to secure a $3. 5 Million commercial loan to partially finance its new facility, later the company completed a sale-leaseback transaction involving its factory, this financing replace the company s mortgage and line of credit. The company had also signed a letter of intent with a potential investor for a proposed $600,000 equity investment; the company intends to direct the proceeds of the said transaction to financing its working capital needs to pursue growth in the Bear-Gram channel and to maximize the benefits of importing raw materials; * Quality Control: The company strives to maintain its products environmental friendly and was safe for children. * Human Resource Management: * The company employed 181 individuals, none of them belonged to a union which provided the company with some sort of protection against strikes; * In order for the company to meet heavy demand at holiday periods such as Christmas, Valentines Day and Mothers Day, the company depended on independent contractors/home workers. * Technology Development: The manufacturing/production facilities included a state of the art packing and shipping equipment; * The companys call centers had state-of-the art technologies including PC termina ls and very high tech telephone switching equipment that allowed the company to handle significant call volume; * The company installed a new telephone system, which improved its telemarketing operations and was designed to accommodate future growth in telephone call volume; * The company had a high-tech shipping system, including state-of-the art multicarrier software so that if a major carrier like UPS went on strike, it could immediately make adjustments; * The company had launched an extensive website including pictures of the product in 1997 where its customers are eligible to place their orders online, which was part of the companys computer network of approximately 250 workstations that linked order entry with sales and accounting systems. * Procurement: * The most relevant long-term objectives for the company are as follows: * Competitive Position: the company always strives on keeping its position as a market leader backed by designing and manufacturing the best teddy bears made in America and represent an attractive gift or collectible for both children and adults; * Profitability: sustain and increase profitability by improving the Bear-gram services that is provided through either the internet or the phone which are designed to accommodate future growth in request volume; * Public Responsibility: the companys manufacturing practices respect the environmental aspects by using the best available materials for its bears. The company uses Differentiation-focus as a generic strategy illustrated in: * Using American-made materials in its products; * The company offers a life-time guarantee; * Easy order placement and prompt delivery; * Rapid response to its customer complaints. Grand strategies are applied through: * Product Development : The company diversified the spectrum of its products to include the following: * More than 100 different bear outfits to individualize the companys bears, to emphasize certain relevant characteristics, or to personalize bears for different occasions and events; * Using recycled Ben and Jerrys ice cream containers to make the bear joints movable, a feature associated with traditional, high quality teddy bears; * Selling items related to Teddy Bears; * Selling stuffed toys manufactured by other companies; * Changing the packaging structure to ensure damage-free products and lower courier services; * Turnaround Strategy: The company exercised the turnaround strategies to survive the following incidents: Incidents| Actions reflecting Turnaround Strategy| The companys expenses increased while sales growth did not offset this growth;| * Eliminate several unprofitable marketable ventures (such as its sponsorship to NASCAR circuit race car and driver); * Reduce General and Administrative exp enses; * Change of key management position;| * The company applied a new trademark name to broaden brand appeal and take advantage of national and international distribution opportunities; * Explore new opportunities for growth through opening new retail stores and expanding the catalog;| * Focus on Bear-Gram business to expand the companys distribution channels; * Shut down retail stores to reduce costs; * Change of key management position;| Vermont Teddy Bear Case Essay Example Vermont Teddy Bear Case Essay Although Vermont Teddy Bear is a company with a rich track record in the business of last-minute gifts, its mission statement lacked its basic goals and philosophies that aim to shape its strategic posture. Vermonts mission statement clearly speaks to someone who is well acquainted with what the company does and what it sells, which is in my opinion a crucial point that the company missed when they addressed its customers. The following points provide an insight on what went wrong when Vermont decided to formulate its mission statement: * The Basic Product the company sells: Vermonts mission statement clearly failed to mention the type of product they sell. By defining the product the company simply distinguishes its offered products from competitive products of similar nature provided by other competitors in the market. * The companys targeted customers In this element, the company mentions who are its customers or potential customers. What will it do to serve them and how will its customers find this company different from the other companies or competitors who provide similar products in the market. Although Vermonts mission statement might have implied that it is currently targeting American customers through :The Vermont Teddy Bear brand represents the rich heritage of the Great American Teddy Bear begun in 1902. , yet this contradicts with the companys current plan in which it intends to exploit international markets, in other words, the company should revise its statement to include potential customers too. * The Technology applied: By defining technology, the company tells its current technology that it uses in making its products i. . whether state of the art technology or hand-made technology. It also tells about the unique ways in which its products are technologically more advanced or distinguished then their alternates. Nevertheless, it is worth noting that the word craftsmanship found in the companys mission statement might tell that the companys products are hand-made, which distinguishes it from other players in the industry, given the fact that most stuffed toys to day are manufactured. The Companys concern for survival, growth and profitability: Vermont failed to fine the means it seeks to survive in the longer run given the fallback they are currently going through. It not merely lists them out but also defines the logic behind them and how will the company strive to achieve them; these goals serve as economic indicators for the companys performance, and hence indicates how far the company is from satisfying the principal claims and desires of its employees and stockholders. The Companys Philosophy: By defining philosophy, the company defines its way of working, its culture, its beliefs and how it sees work to be carried out. it is also an analytical way of defining the norms of which it runs. In my opinion, the companys mission statement had covered the companys creed through the following: We will strive to wholesomely entertain our guests while consistently exceeding our external and internal customer service expectations. * Concern for public image We will write a custom essay sample on Vermont Teddy Bear Case specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Vermont Teddy Bear Case specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Vermont Teddy Bear Case specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Concern for public image is a wide term that includes not only the corporate social responsibility but the overall impact of the actions taken by the company on its image, which in my opinion was totally dropped when formulating Vermonts mission statement. * Companys self concept By defining the self concept, the company shows the outside world its core strengths and the place it sees itself in the future. When reviewing Vermonts mission statement, it is clearly evident that the statement failed to express the companys core strengths in terms of the entrepreneurship capabilities and a robust distribution channels. In light of what was mentioned above, I suggest that Vermont should revisit its mission statement, the following statement will help the BOD in their plans for the company: Become number one instant gift solution in the USA in the next 20 years. We design and manufacture the best teddy bears in America. We satisfy customer needs through product differentiation, we offer exclusive hand-made teddy bears to premium customers as well as providing convenient products to the other customers. Speed and easiness of delivery of our products will be respected along with premium quality. Monthly Measuring customer satisfaction will be our main tool for maintaining our market positioning and for our continuous development for our brand and products. While achieving our mission in owning a profitable business, we will strive to being ethically, legally, and environmentally responsible while remaining fiscally sound. Vermonts external environment consists of three components: its operating, industry and remote environment. In these three environments, there is a chance that one of its external environments may change. All of these environmental sectors affect the companys operations both on the local and international level, and its very possible for change to occur (as witnessed throughout the case study). Operating Environment: Competitors of Vermont Teddy Bear could be subdivided into three categories: * Major plush doll manufacturers such as Mattel and Hasbro were considered competition in this sub segment of the toy industry. * Other bear manufacturers including Steiff of Germany, Dakin, Applause, Fiesta, North American Bear, and Gund, the leading market of toy bears. Variety of other special occasions greetings such as flowers, candy, balloons, cakes and other gift items that could be ordered by phone for special occasions and delivered next day. As for Labor, and given the massive production the company is required to undertake to meet its customers needs especially in special occasions such as Christmas, Valentines Day amp; Mothers Day , the company heavily relied on outsourced home worker s who performed production functions at their homes and hence were treated as independent contractors. Although these home workers/independent contractors allowed the company flexibility in meeting heavy demand as mentioned earlier which allowed them in scheduling their hours of work, home workers were free to reject or accept any work offered by the company which might make the company vulnerable to failure in meeting its customers heavy demand especially in high season sales. The company maintains a solid HR system through a strong built bear culture among employees. The companys manpower do not belong to any unions which eliminates any Labor issues. n the credit side I believe that the company does not face any problem with external financing; the company has two sources of financing, equity through issuance of shares since it is a traded company in the New York stock exchange market, in addition to debt and leasing which can be provided through commercial banks and leasing companies, which in my opinion is not a viable point for Vermont as it already consumed most of its credit li mits lately, comparing with its competitors who had greater financial resources. Historically, the companys focus had been to design and manufacture the best teddy bear made in America, using American materials. This philosophy was modified significantly in 1998 with the companys decision to explore the offshore sourcing of materials and manufacturing alternatives in an effort to lower the companys cost of goods sold and to broaden its available sources of supply, in my opinion such change would diverse the companys dependence on American supplies or raw material, now that it has a wide pool of international suppliers which will give the company a significant bargaining power in terms of cost and quality. Although many teddy bear producers define their product as toy and marketed solely to children. The company marketed its bears as an attractive gift or collectible for both children and adults which enabled the company to penetrate a wide-ranged customer pool, including children, young and old people whether males or females. If the company considers going globally, the company might face problems when addressing global customers, such Anti-Americans who might avoid buying the companys products knowing that it is an American product, especially that the companys competitive advantage stems from their origin, being one of the earliest producers of teddy bears in America. Industry Environment: Barriers to entry into this industry is there, evidenced by the challenges that Vermont along with the other current players face in the market, such as economies of scale, product differentiation, capital requirements and access to distribution channels. Given that both the stuffed toys and last-minute gifts markets are already saturated, I believe that the possibility of entry of a new player to the said markets is quite difficult, unless this new player intends to acquire an existing company to capitalize on its position in the market. For Vermont and as discussed earlier, the company had recently shifted to rely on various suppliers from local markets and different countries in its raw material in an attempt to reduce its costs, yet it was implied that it still relies on an American supplier-who happened to be the only eye maker left in America-in attempt to produce the ears with domestic materials, this might give this supplier some bargaining power to exert on Vermont. Last minute gift customers normally lack the power to force down prices or play competitors off against each other, this is mainly attributable to that Vermonts industry is a fragmented one, and last minute shoppers are ready to pay anything to acquire a gift due to time constraints which disable them to consider or make comparison with other competitors products; they will simply buy the first thing their eyes lie on to buy that gift especially in special occasions and events. Capitalizing on what was said earlier, Vermonts Teddy Bear as a product had several substitutes including toy bears, stuffed dolls or animals, flowers, candy, balloons, cakes and other gift items which in my opinion deserve the most attention strategically. To my opinion, and given that the Industrys competitors are numerous and that the industry growth is slow, Vermont is facing an intense rivalry from its competitors which the company should focus on strategically in the future. Remote Environment: The remote environment is what originates beyond the daily operations of Vermont. The remote environment is made up of five factors that are not influenced by a single company. These factors are economic, social, political, technological and ecological. Although these factors cannot be affected by Vermont, they can definitely effect the operations of the company. These must be all considered by the company when working with the market. Over the next twenty years, there are several changes that might take place in the remote environment. Since technology is not an important factor in this industry the company might disregard it when formulating its strategy. Political factors are quite stable on the local side yet if the company considers going global it must take these factors into consideration, for example if changes occurred in laws and regulations with respect to Foreign Direct Investment (FDI), they must make changes to meet Political standards. Ecological factors also might cause several issues; although the companys manufacturing practices are environmentally sound, other factors might be an issue (for example global warming) given the fact that the company owns and operate a factory at which it produces its products, then the energy used by the company to produce its products must e modified in order to meet ecological standards. To be sustaining in the market, Vermont should encourage the knowledge of the internal environment that affects its business. There are many internal factors that impact Vermonts performance; these factors constitutes of the companys competitively important resources and capabilities. Unfortunately reso urces whether tangible or intangible are scarce by nature and it will be a great challenge for the company to manage their resources in order to gain the competitive advantage. Tangible Assets: The company operates and owns a fully integrated facilities including retail stores, manufacturing and distribution facilities in a 62,000 square-foot building on 57 acres that the company owns; * The manufacturing/production facilities included a state of the art packing and shipping equipment; * The companys call centers had state-of-the art technologies including PC terminals and very high tech telephone switching equipment that allowed the company to handle significant call volume; * The company installed a new telephone system, which improved its telemarketing operations and was designed to accommodate future growth in telephone call volume; * The company had a high-tech shipping system, including state-of-the art multicarrier software so that if a major carrier like UPS went on strike, it could immediately make adjustments; * In 1998 the company succeeded to secure a source of finance amounting $600,000 (in the form of equity investment that was injected by Shepherd Group) which will provide working capital for the company to pursue growth in the Bear-Gram channel and to maximize the benefits of importing raw material; * The company had launched an extensive website including pictures of the product in 1997 where its customers are eligible to place their orders online, which was part of the companys computer network of approximately 250 workstations that linked order entry with sales and accounting systems. Intangible Assets: * The companys name in combinatio n with its original logo was a registered trademark in the United States including The Vermont Teddy Bear Company, Bear Gram, Teddy Bear Gram and Make-A-Friend-For Life; * It owned the registered trademark Vermont Teddy Bear in Japan; * The company claimed copyright, service mark, or trademark protection for its teddy bear designs, its marketing slogans, and its advertising copy and promotional literature; Organizational Capabilities: * The companys manufacturing practices were environmentally sound. The company sought to use the best available materials for its bears; * The companys products were sold with a Guarantee for Life under which the company undertakes to repair or replace any damaged or defective bear at any time; * The companys products were designed in such way to a certain event or occasions, the company even provided outfits to individualize the customers bears or to emphasize certain relevant characteristics of the receiver; * The company was primarily know for its Bear-Gram delivery service, where customers could send the gift of a Vermont Teddy Bear by placing an order through the companys 800 number or online, providing its customers with an instant and spontaneous solution for the perfect gift especial in events and special occasions; * Since its inception in the 80s, the companys main focus was to design and manufacture the best teddy bears made in America, using American materials and labor, which helped the company to build up a strong and extensive custome r base; * The companys decision to explore the offshore sourcing of materials was a brilliant and a dynamic solution for lowering the companys cost of goods sold and reducing the suppliers power over the company; * The company has a wide range of products that suits both premium and regular customers; it has its handcrafted 15-inch classic teddy bears as well as its manufactured bears, in addition to other items related to teddy bears such as clothing, jewelry and accessory ornaments; * The company strove to provide rapid response to its customer orders and complaints. It believed that as a result of the quality of its products and service, it had established a loyal customer base; The value chain analysis (demonstrated below) aim at increasing customer satisfaction and managing cost effectively; it is a systematic approach to examining the development of competitive advantage, it comprises both primary and support activities: Source: pcwin. com Primary activities of Value Chain Analysis are directly concerned with the production or delivery of a product and consist of: * Inbound Logistics: Vermonts manufacturing premises included a state-of-the-art packing and shipping equipment, in addition the company also had a three-year lease on 10,000 square foot of inventory space at a separate location in Shelburne. Exploiting offshore markets for the sourcing of its materials provided the company with a wider base of suppliers which prevented the company from dependence risks; * Operations: despite the companys 1998 move to the offshore sourcing of raw materials and which implied a significant departure from the companys historical position as an American manufacturer who uses almost exclusively American materials, the companys products were still environmentally sound; the company sought to use the best available materials for its bears. The company produced two type of products; its handcrafted 15-inch classic teddy bear for those customers who are interested in an American made product and its manufactured event or special occasion-customized teddy bears for the rest of its customers, in addition to selling items related to its teddy bears; * Outbound Logistics: The company was known for its Bear-Gram delivery services, which enabled the company to provide instant delivery services (either by air or ground delivery services) to its customers throughout the different states of America as well as outside customers such as Canada through a carrier such as UPS. In addition, the company had a high-tech shipping system, including state-of-the-art multicarrier software so that if a major carrier like UPS went on strike, it could immediately make adjustments; * Marketing and Sales: The companys extensive computer network in addition to its new telephone system enabled the company to expand its customer base not only in Ver mont but throughout the rest of the states and the world and provide rapid response to its customer orders which in turn; * Service: The company sought to respond promptly to customer complaints. Each bear was sold with a Guarantee for Life under which the company ndertakes to repair or replace any damaged or defective bear at any time; These primary activities are supported by secondary activities which help to improve the efficiency and effectiveness of the primary activities of the company and consist of: * Firms Infrastructure: it can be subdivided into three main categories: * Organizational Structure: The companys Board members and Executive Officers had solid experience in different fields including marketing, finance amp; investment; * System of Planning Finance: The company managed to secure a $3. 5 Million commercial loan to partially finance its new facility, later the company completed a sale-leaseback transaction involving its factory, this financing replace the company s mortgage and line of credit. The company had also signed a letter of intent with a potential investor for a proposed $600,000 equity investment; the company intends to direct the proceeds of the said transaction to financing its working capital needs to pursue growth in the Bear-Gram channel and to maximize the benefits of importing raw materials; * Quality Control: The company strives to maintain its products environmental friendly and was safe for children. * Human Resource Management: * The company employed 181 individuals, none of them belonged to a union which provided the company with some sort of protection against strikes; * In order for the company to meet heavy demand at holiday periods such as Christmas, Valentines Day and Mothers Day, the company depended on independent contractors/home workers. * Technology Development: The manufacturing/production facilities included a state of the art packing and shipping equipment; * The companys call centers had state-of-the art technologies including PC termina ls and very high tech telephone switching equipment that allowed the company to handle significant call volume; * The company installed a new telephone system, which improved its telemarketing operations and was designed to accommodate future growth in telephone call volume; * The company had a high-tech shipping system, including state-of-the art multicarrier software so that if a major carrier like UPS went on strike, it could immediately make adjustments; * The company had launched an extensive website including pictures of the product in 1997 where its customers are eligible to place their orders online, which was part of the companys computer network of approximately 250 workstations that linked order entry with sales and accounting systems. * Procurement: * The most relevant long-term objectives for the company are as follows: * Competitive Position: the company always strives on keeping its position as a market leader backed by designing and manufacturing the best teddy bears made in America and represent an attractive gift or collectible for both children and adults; * Profitability: sustain and increase profitability by improving the Bear-gram services that is provided through either the internet or the phone which are designed to accommodate future growth in request volume; * Public Responsibility: the companys manufacturing practices respect the environmental aspects by using the best available materials for its bears. The company uses Differentiation-focus as a generic strategy illustrated in: * Using American-made materials in its products; * The company offers a life-time guarantee; * Easy order placement and prompt delivery; * Rapid response to its customer complaints. Grand strategies are applied through: * Product Development : The company diversified the spectrum of its products to include the following: * More than 100 different bear outfits to individualize the companys bears, to emphasize certain relevant characteristics, or to personalize bears for different occasions and events; * Using recycled Ben and Jerrys ice cream containers to make the bear joints movable, a feature associated with traditional, high quality teddy bears; * Selling items related to Teddy Bears; * Selling stuffed toys manufactured by other companies; * Changing the packaging structure to ensure damage-free products and lower courier services; * Turnaround Strategy: The company exercised the turnaround strategies to survive the following incidents: Incidents| Actions reflecting Turnaround Strategy| The companys expenses increased while sales growth did not offset this growth;| * Eliminate several unprofitable marketable ventures (such as its sponsorship to NASCAR circuit race car and driver); * Reduce General and Administrative exp enses; * Change of key management position;| * The company applied a new trademark name to broaden brand appeal and take advantage of national and international distribution opportunities; * Explore new opportunities for growth through opening new retail stores and expanding the catalog;| * Focus on Bear-Gram business to expand the companys distribution channels; * Shut down retail stores to reduce costs; * Change of key management position;|

Same-Sex Marriage essays

Same-Sex Marriage essays In America today, 84 percent of the population defines marriage as the union of two people of the opposite sex. Marriage is one of the fundamental establishments of the United States, as stated in the U.S. Constitution. However, many Americans are denied this basic right because of whom they are trying to marry. In most states, including Indiana, it is illegal for two people of the same sex to enter into a marriage together. The state of Indiana is one of 40 states whose constitutions clearly define marriage as  ¡the union of a man and a woman ¡. I believe that this is blatant discrimination towards homosexuals and their families, and the law should be altered in some way to accept everyone despite their sexual orientation. Indiana has no laws that address benefits towards gay and lesbian couples. The state does not recognize any same-sex marriage, regardless of where the marriage took place. Indiana does not grant any recognition of civil unions, nor do they offer same-sex partner benefits for government workers, as many states now offer. As stated above, Indiana will only grant a marriage license to a woman if she is marrying a man or a man if he is marrying a woman. In a poll taken by WTHR Channel 13, less than a quarter of Hoosiers believe gay couples should be allowed to marry. Only 19 percent of adults are in support of gay marriage, but the majority of Hoosiers under age 35 believe in some form of legal acknowledgment. All in all, it is going to take time before Indiana catches up with the rest of the country in awarding same-sex benefits and recognition. Although marriage is the primary goal, recognition in general would be a giant step in the right direction. Massachusetts is the only state right now that has legalized same-sex marriage. Many cities throughout the country have taken it upon themselves to grant marriage licenses to same-sex couples. These are a few places in the Unit ...

Environmental Economics Essay Example | Topics and Well Written Essays - 1000 words - 4

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Battle between the Pluralist and Unitary of Reference in Australia - Essay Example The most commonly discussed frames of references for analyzing the employee relations include the unitary and pluralist perspectives. These two concepts bear contrasting differences with respect to each other and help the management deal with situations and conflicts in an effective manner. This paper shall discuss the workplace relations in Australia with respect to the unitary and pluralist frames of reference. 2. Differences between Unitary and Pluralist Perspective The unitary perspective includes the concept of shared goals and unified vision among all the employees and employers. According to Agarwal (2008), the believers of this perspective are under the impression that success can be attained only if the members of the organization possess the same views and business objectives, in spite of their differing job descriptions and nature of tasks. Whereas according to Edwards (2003); some school of thoughts believe that unitary frame of reference bears minimal degree of practical ity for most situations since it holds the assumption that all employees are loyal to the organization and the management makes all decisions in accordance with the best interests of their employees. Such organizations do not promote the concept of trade unions, rather stress on the efforts involving team building and management. Trade unions are discouraged so that the probability of occurrence of conflicts is minimized. Budd and Bhave (2006) explained that any conflicts that may arise in the organization will be simply an outcome of poor management or misunderstanding, rather than conflict of interests. In the modern times, human resources management has taken over to monitor the employee relations of organizations. On the contrary, pluralist frame of reference caters the self-interests of employees that might cause competition and motivation of fulfillment of personal goals more than harmony and common interests. Individuals with common goals and interests may develop unions to s upport each other in the presence of conflicts. Edwards (2003) stated that whenever different sources of authority are present, the probability of greater conflicts is witnessed. Some of the conflicts of interests might arise due to the employees’ demand for higher salaries and employers’ demand for lower wages etc. The conflict of interests creates dissimilar visions and objectives and thus, ends up affecting the productivity and revenues of the organization. The management (of such frame of reference) is often witnessed to serve more time in coordination and motivating employees, rather than controlling and improvising. 3. Workplace Relations in Australia Australia is counted amongst the regions that had been under the affect of plurality frame of reference since the initial years of the twentieth century. This was the time when unions played a vital role in influencing the structure of the employee and industrial relations. Leigh (2005) provided an estimate to highl ight the degree of integration of unions in Australia at that time; at least 2 from 5 employees were known to be a part of some union in their organization. The gradual introduction of policies and systems by the government caused changes in the traditional structure of Australian employee relations; their intervention has resulted in the

The Impressive architectural structure of the Parthenon Term Paper

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The Starbucks Company Profile Marketing Essay

The Starbucks Company Profile Marketing Essay Starbucks was founded in 1971 as a roaster and trader of the raw coffee, tea and spices with only one single store in Seattles Pike Place Market. Starbucks was named after the first mate in Herman Melvilles Moby Dick. This name reminded of the legend of the high seas and the oceangoing tradition of the early coffee traders. Starbuckss logo was also inspired by the sea. It was featured with a twinà ¢Ã¢â€š ¬Ã‚ tailed siren from Greek mythology (Starbucks, 2013) After 14 years of doing business, Starbucks incorporated on 4 November 1985 and become a leader in coffee beverage industry operating in 62 countries with more than 18,000 locations globally nowadays. Starbucks plans to open more 1,300 new stores around the world in 2013 (Starbucks, 2013; The New York Job Source, 2012). Starbucks operates in four main segments: Americas; Europe, Middle East, and Africa (EMEA); China/Asia Pacific (CAP), and Channel Development. During 2012, the main revenues came from Americas market (75%), EMEA (9%), CAP (5%), and Channel Development (10%). The other market built about 1% of Starbuckss total net revenues (Reuters, 2013). Starbuckss products are many kinds of coffee and tea. Beside its own stores, Starbucks also gives license of its trademarks via other distribution channels, such as licensed stores, grocery and international foodservice. In addition to Starbucks brand, its portfolio also includes Tazo Tea, Seattles Best Coffee, and Starbucks VIA Ready Brew, Starbucks Refreshers beverages, Evolution Fresh, La Boulange bakery brand, and the Verismo System by Starbucks. Starbucks stores offer a wide option of normal and decaffeinated coffee beverages. There are a choice of Italian-style espresso beverages, cold blended beverages, iced shaken refreshment beverages, as well as selection of Tazo teas, packaged roasted whole bean and ground coffees; a range of Starbucks VIA Ready Brew soluble coffees, Starbucks coffee and Tazo tea K-Cup portion packs, Starbucks Refreshers beverages, juices and bottled water. There is also a variety of fresh food products which focus on nutritional value and flavour. Food items include pastries, prepared breakfast and lunch sandwiches, oatmeal and salads. In order to focus on coffee, breakfast sandwiches was stopped selling in 2008. In April 2008, Starbucks introduced Pikes Place Roast which is also new line of regular coffee (Reuters, 2013). Starbucks also announced that it would spend 100 million USD for buying LaBoulange Bakery in San Francisco which is famous for producing French pastry and bread from scratch and going to add these new items to Starbuckss store menu in the near future. Starbucks also said that it would want to buy the famous tea Teavana retailer for about $620 million (The New York job source, 2012). Starbuckss mission is to inspire and nurture the human spirit one person, one cup and one neighbourhood at a time. Starbuckss goal is serving the best coffee for the customers. In order to achieve that goal, Starbucks ensures that its coffee to be grown with the highest quality standards, using ethical sourcing practices. The coffee buyers of Starbucks also do travel to the coffee farms in area such as Latin America, Africa or Asia personally to select the highest quality coffee beans. In addition, Starbuckss master roasters make the stability and rich flavour of the coffee beans via the signature Starbucks Roast (Starbucks, 2013). There are some of Starbuckss awards and recognition recently as listed below: No. 1 Best Coffee, Fast Food and Quick Refreshment categories Zagats Survey of National Chain Restaurants 2009à ¢Ã¢â€š ¬Ã‚ 2011 No. 1 Most Popular Quick Refreshment Chain Zagats Survey of National Chain Restaurants 2009à ¢Ã¢â€š ¬Ã‚ 2011 One of The 100 Best Companies to Work For Fortune 1998-2000, 2002-2012 One of the Most Admired Companies in America Fortune 2003-2012 One of the Worlds 50 Most Innovative Companies Fast Company 2012 One of the Worlds Most Ethical Companies Ethisphere 2007à ¢Ã¢â€š ¬Ã‚ 2012 One of the 100 Best Corporate Citizens Corporate Responsibility/Business Ethics 2000à ¢Ã¢â€š ¬Ã‚ 2012 Sustainability Design Award Global Green USA 2011 Most Ethical Company, European Coffee Industry Allegra Strategies 2009à ¢Ã¢â€š ¬Ã‚ 2011 Business Person of the Year, Howard Schultz, Starbucks chairman, president and chief executive officer Fortune 2011 (Starbucks, 2013) Technology After the millennium, the technology has been changing rapidly. Technology has been used in everyday life, everywhere including Starbucks. Starbucks use technology as a tool to develop itself. Social media Unlike many big companies in the world, Starbucks hasnt spent a huge amount of money on advertising on television, poster or newspaper. Starbucks marketing strategy is different. It is called creating a Starbucks community. By using the advance of internet technology, especially social network, Starbucks has successfully created a strong community around their brand and turn their social media fans into revenue. The success of Starbucks through social media firstly starts with a commitment of building the relationship, not sales. Recently, many organizations all over the world attempt to use social media on reaching as many fans as possible. In fact, focusing just on increasing the number of fans misses the companys true value. This is the loyal customers who are willing to build the long term relationship with the company (Ronan, E., 2013). Starbucks is considered as a leader in effective social media marketing. Starbucks is nearly the top brand in social media (Gembarski, R., 2012). The coffee house was also voted most loved out of 3,400 food brands in a survey. Beginning in 1971, Starbucks has transitioned into the era of the internet by using social media domination. Currently, Starbucks has over 34 million fans on Facebook and continues to add more than 300,000 new fans every week (Starbucks, 2013). Everybody knows that Facebook is very powerful today. With more than 964 million of users, this is one of the best ways for doing marketing (Checkfacebook, 2013). On their Facebook page, Starbucks listens to their customers. They focus on creating and maintaining the customer relationship. Starbucks tell a story of their own brand by using social media, via stories and videos. Social media is also used for social activity, such as donation for Haiti during its disaster in 2010 (Grand social center, 2013). Because Starbuc ks targets on young people, social media is the effective tool for marketing. As the world becomes more digitally focused, social media is best place for sharing information and using the word-of-mouth marketing strategy. Starbucks has an advantage over competitors. The company did not have to spend a huge amount of money for traditional advertising. The advertising for Starbucks has been done by millions of fans they already have on social network such as Facebook and Twitter.  Ã‚  That means when Starbucks share the photo on Instagram, post the video to Facebook or Twitter, share the information on website, it will reach to a million of target audients just by a simple click. Therefore, Starbucks is familiar with its customer when it comes to any social media campaigns.   Many of their marketing campaigns are initiated using Twitter, Facebook and their own website.   Instead of getting more and more fans, Starbucks tries to expand the brand awareness (Grand social center, 20 13). On the social media, Starbucks works on engaging a dialogue rather than pushing a one-way communication. Starbucks not only want to be recognized as fun and creative, but they also show their attention about what the customers think about their service, as well as their products (Practical social media university, 2013). On the website, Starbucks have a link to their My Starbucks Idea page.   My Starbucks Ideas is online place where the coffee lovers can do chatting and brainstorming new ideas to make Starbucks become the best one in the coffee businesses.   Starbucks really takes each idea into consideration. It shows to their customers that their requests arent going unheard.   By doing that, Starbucks wants to send the message to the customers that they really care about them and want to make their experiences at  Starbucks the best there are (Noff, A., 2010) Digital network Digital network By offering the free and unlimited Wi-Fi for every store, Strubucks now is not only the traditional coffee shop but also the meeting place or makeshift office for its customers. People can go to the Starbucks store, order a cup of coffee, and go to the internet for entertainment, searching information for discussion or chatting with the others. This is the style of young people nowadays which is the target customers of Starbucks. In October 2010, Starbucks made a move to develop its online offerings to its customers with the launch of its Digital Network. The Starbucks Digital Networks is available through the free Wi-Fi network in Starbuckss stores in the US (Starbucks Digital Network, 2012). It offers the users access for free to hand-picked, multi-media content from content providers such as the Yahoo, Wall Street Journal, New York Times, Zagat and Apple which have to pay for from the Internet. This is a new type of Starbukss competitive advantage as it is the first offering of this kind. It makes Starbucks become a place that customers can stay connected, be inspired and entertained. The Starbucks Digital Network has immediately differentiated Starbucks from a number of other coffee shop retailers that also offer the free Wi-Fi in their coffee stores. The customer response of it has been noted as enthusiastic (Grove, J., 2010). New technologies in Starbucks New technologies bring international attention and customers to the company. Emerging technologies give solutions to pressing global challenges and providing productive ground for sustainable business opportunities. Brewing For decades, the technology of coffee brewing had been well established. Starbucks is known very well in the market due to its high quality coffee, care in selection and expertise in roast. Starbucks establishes its profitable competitive advantages by broadly differentiating its coffee and coffee related products, depending upon its competence and innovation. An innovative design that lets customers to discover new dimensions within a coffees familiar aroma, flavor, body and acidity is the Clover brewing system (The Clover brewing system, 2013). This machine, which made its debut in 2007, uses innovative Vacuum Press technology in order to create the cup in front of the customer. This system controls brew time and temperature digitally, as even small changes can affect the quality of the product. After the coffee brews, it is pulled through a 70 micron filter in order to produce the ideal flavor. Clover machine has speedily become regarded as the gold standard in innovation in brewing equipment, with its proprietary brewing process. Additionally, in order to expand and reach more customers Starbucks enter to the home of its customers by the home brewing system named Verismo TM System. This is the premium at-home brewing system which allows customers to craft Starbucks quality espresso beverage. Mobile app Another example how Starbucks has embraced modern technology is their use of smart phone capability. Starbucks is continuing to create amazing connections with the customers, offering them choices in how they want to pay. The company is betting big on mobile commerce to force its sales as more and more people use smart phones for their everyday needs (Kaushik 2012). Starbucks turns to mobile commerce to ensure that it grabs a slice of the every mobile user segment that does not hesitate to use their smart phones to transact. In early 2011, Starbucks launched a nationwide mobile payment app, available for Android, iPhone and Blackberry. This app is named Squares Wallet app, which let customers to buy a coffee by presenting the barcode that the app generates, brose menu information, store hours and transaction history, all on their phones. Adam Brotman, chief digital officer of Starbucks, explained that Starbucks was the first retailer to present its own mobile payment technology (Grov e, 2012). The Squares Wallet app is linked to the customers debit or credit cards, so there is never a need to reload a balance. Globalization Globalization had been widely debated in many areas (Friedman, 2006). It also affects the food industry (Traill, 1997). Globalization on food and beverage sector The globalization process affects The FB sector, like other industrial sectors. Specifically, the beverage industry is a bellwether in the food industry. In globalization studies three main lines of researches have emerged (Traill 1997). Firstly, it is the escalating influence of international trade and its role of promoting economic growth. The second line is the increasing importance of Multinational Enterprises in trade and foreign direct investment, especially in promoting an integrated economy. The third emerged line of appeared researches in Globalization is the significance of perspectives that come from the marketing profession. At this last research the Globalization is seen in terms of consumer markets /for example demographics as well as food preferences and attitudes/ (Vaydia 2006). Globalization has changed the face of this sector since 1980. According to Bolling (2002) three major shifts have occurred in the business environment of this sector since 1980. The first one is refocusing the business sector from national to international. Next shift is the expanding firms activities across business lines. The third one is growing the competition in the global soft drink industry. Soft drink companies have to account for the various changes, brought by the various changes by the always changing global market. Nowadays they produce for domestic and foreign markets, license their products and invest in plants in other countries. Globalization has been rising rapidly in last few decades and it has become one of the most discussed and debated topics. Globalization has effects on almost everything, economy, society, environment in their own different ways and it has become an important factor of business throughout the world. Upon globalization there are many changes to the corporations and those related mostly to the increasing of competition, change of price and quality, tremendous changes in technologies and information. The coffee industry has changed and impacted by the various changes of global change. Today coffee has become a lifestyle from a simple product. Last four decades coffee price had gone cheaper due to the globalization and increased and overproduction of coffee all over the world. Due to the increasing demand of coffee and overproduction some manufacturers produce low quality products, however, some consumers are willing to pay higher price for the cup of higher quality coffee. There was one company that made drinking coffee is not just for certain group of people to get an morning caffeine but for everyone to enjoy at anytime they what, that company is Starbucks. Drinking a coffee in the cozy coffee shop is a lifestyle in nowadays. Globalization has helped Starbucks to go global and build international company. Building international company is not easy for every organization. There are benefits and always has difficulties and drawbacks. When Starbucks went global they used exact same business model that quickly developed in United States, but soon they realized that the tactics that worked in local market would not work in international market. During their global expansion there were cultural conflicts with the many regions that those consumers did not want to accept Starbucks as the way they are. In addition, Starbucks had to find a ways to adopt the culture of these regions and understand them to get their support in those countries, and it was listening the opinions and suggestions of their customers. One of the big conflict were Chinese culture, Starbucks had to adopt many things, such as, store layout, timing of the opening and peak hours. Also, there were some food and drink preferences that they had to adopt to suit to the customers wants and needs in that specific region. They had to utilize Intellectual Properties for their name and logo. The reason was there were competitors or other coffee shops used the ir name and logo and to stop them and prevent this to happen again. As mentioned earlier, globalization has its both good and bad sides. One of the major good sides of it is more people employed, educated and trained. Starbucks gave their employees complete health benefits and they were the first company in USA who did this. Besides that, Starbucks offers complete training to their employees. Downside of Globalization We have read all the books writing about how amazing globalization is, but it is not working in the same way in all the times. Globalization also has its downside and all the multinational companies, like Starbucks, have suffered in different degrees according to the countries they conduct their business. As many globalized companies managing businesses in many countries, the problems like ethic, corporate social responsibility, political problems, human rights, culture of the different countries, etc. are arise. For Starbucks having many outlets outside U.S, they sure suffer from different problems in different countries. The problems most international company facing in global business can be divided in to strategic, operational, political, country, technological and environmental risks. Michael Porter stated five different forces, which has impact on competitiveness of company: threats of new entrance, threat of substitutes, supplier power, customer power and competition in the markets. These can be challenge to multinational companies like Starbucks because they need to make different strategic decisions according to different markets they are in. Operational problems are much more internal to the organization such as machine breakdown, stock shortage, lack of professional workforce, delay in supply and delivery, and so on. These operational problems can harm Starbucks, because they value their uniqueness and unity in all outlets. In different countries those problems can be vary according to the location, culture, systems but it is important for Starbucks to deal these problems in time. Starbucks also need to deal with political problems in different countries. Operating in many developing countries, where political volatility is high, Starbucks may needs strategies to deal with micro political problems such as changing regulations in industries. Country risk is similar to the political risk but it is wider. The government policies, security of the country, political factors can be different. Starbucks may also need to deal with such problems in different countries. The short-term problems like financial problems and other operational problems can be solved within a short time and if tackled properly, they can bring the organization to short-term success. However, problems like environmental problems are important for organizations to solve carefully because it can affect organizations image and if properly solved, it can also be competitive advantage in the long-term. Starbucks also needs to solve environment problems like pollution and peoples outcry in some countries. Cultural, Political and Ethical problems Starbuck had faced many problems in the years of their international expanding. Starbucks faced problems in Middle East because of the culture of the country and volatile policy. Due to the close relations between US and Israel, Arab students called for boycott to American brands in their county including Starbucks, Coca-Cola and Burger King. Starbucks was top of the list because CEO of Starbucks, Howard Schultz, had close relation with Jewish community. He was awarded the Israeli 50th Anniversary Tribute Award by the Jerusalem Fund of Aish Ha-Torah, a group of activists supporting Israel. Things got worse when Howard Schultz allegedly made speech to students at University of Washington. In the speech Schultz said, one of my mission is to sensitize you; you should not be immune to what is happening in the world. I travel a great deal and one of the things I see is the rise of anti-Semitism in Europe, especially France and England. Tensions became more intense when he addressed to Ame rican-Jewish society. He said, What is going on in Middle East is not an isolated part of the world. The rise of anti-Semitism is all time high since 1930s. Palestinians are not doing their jobs, they are not stopping terrorisms. Later, Starbucks released statement stating that the comments of the Schultz are those of his personal views and not concerning with companys policy and not of their views. Schultz also released a statement relating to the allegation anti-Palestine and said my position has always been pro-peace and for the two nations to co-exist peacefully. Moreover, Starbucks also had problems in Israel in 2003. When U.S declared war on Iraq, Starbucks had to close down their outlets in Israel because of security concerns. In China, Starbucks also faced with problems relating with culture. Unlike in U.S, the culture of China is different. Most of the customers from U.S has to-and-go culture where they came in, grabbed a coffee and left. However, in China many customers are sitting for hours and refusing to leave. Chinese customers love the place of the Starbucks so much they come in just to sit and chat with friends without buying anything from Starbucks. Sometimes they bring in their own foods into the store, which is a common culture in China but not in U.S. Another cultural problem Starbucks facing is the tea culture in India. In India, tea is the King. It has been the traditional drink for many years. Most of the India people only drink tea not coffee. Starbucks has to deal with the problem and had to market its product more widely. Because of these cultural problems, Starbucks need to make changes to its menu list to solve that problem, also offering tea but not the same taste that can get from local shops. While Starbucks is investing huge fund in training the staffs all over the world and for marketing, the company only received partial share profit and loyalty fees as most of its stores all over the world are joint venture or licensing agreement. Starbucks faced with ethical criticism in 2006 when company protested to US patent and Trademark office (UPTO) against the Ethiopias patent right application to the country famous coffee names. Many criticize Starbucks for hindering the trademark application of Ethiopia, which is one of the poorest countries in the world. This forced Starbucks to sign an agreement with Ethiopia government that acknowledge the Ethiopias ownership of the names of the coffee whether or not the patent or trademark application is granted. MKT GROUP ASSIGNMENT: GLOBALIZATION STARBUCKS SOLUTIONS TO ISSUES ARISING FROM GLOBALIZATION Given the solutions gained though exploiting global technology advances for harnessing business advantage, Starbucks international business model and marketing approaches have used a mix of differentiation and recognisable standardization, to generate solutions in the form of distinct competitive advantages. In terms of marketing approach Starbucks has had to seek other approaches to re-position itself due to culture conflicts in resistance to the larger trend of globalization. Due to this resistance in some areas, Starbucks has had to establish ways to build relationships with foreign nations and seek the support of the residents of those countries for successful franchise and marketing. Starbuckss key strength in achieving this is in listening so well to its customers. Jim Donald, CEO of Starbucks from 2005-2008, noted both the difference in peak times in China and in food preferences. These were adapted in the same way as followed market research in Europe, to understand these regional fluctuations and differences. With regard to successfully penetrating the European market, this was achieved over time as Starbucks evolved to specifically fit the demand of the European citizens. Incorporating nuances in cultural values associated with the coffee market and adapting its strategic succeeded in appealing at these levels the Starbucks strategy in Paris adopts the positioning of coffee purchasing as an endorsement and acknowledged support for foreign coffee producers creating flavours. The approach in this respect incorporates the traditionally culturally held view to blend the classic French concept of pride in a professional skill, with a green and sustainable brand promise. By these means it has focussed upon the understanding of cultural values as a core positioning tool for successfully marketing within the region. Product advertising has also been tailored to meet cultural differences and using a non-standardized promotion strategy, advertisement is country-specific according to trends, custom and culture. This has proved very effective. Using License and franchise ventures strategy, Investment was made to establish Starbucks coffee International as a new company for the expansion of the international business specific in the Asian Region. The strategy adopted was in licensing to local retailers and stores. Starbucks ensured that all the stores followed the same formula of Starbucks and coffee was sold to them only after them they sold to customers. This meant that Starbucks only gained licensing fees and royalties on revenues. Making use of competitive advantage strategy, Starbucks strategically focused on Differentiation. Using this, it remained focused on serving identified niche customers as opposed to its rivals. Using market segmentation strategy, Starbucks successfully built upon its unique capabilities to serve target buyers. In terms of the Starbucks overall Global Market Mix Strategy the retail formula of Starbucks is worldwide; there is to change in the retail system which operates in same way throughout the world. References; ICMR IBS Centre of Management Research case study Starbucks: Evolution of a Global Brand (2003) International IP Property Hart, R. (2011) The Globalization of Starbucks and its Effect on the World Bloomberg Business week (Sept 2002) : Planet Starbucks: To Keep Up the Growth, It Must Go Global Quickly http://www.businessweek.com/magazine/content/02_36/b3798001.htm References 1. The Clover brewing system (2007), accessed March 30, 2013 http://www.starbucks.com/coffee/learn/clover 2. Kaushik, P. (2012) Starbucks Best Big on innovation, Brand Extension and Mobile Commerce, accessed March 26, 2013 http://www.dailydealmedia.com 3. Owen, T. (2012) Square and Starbucks just launched their Mobile payment service in 7000 stores, accessed April 03, 2013 http://www.businessinsider.com/square-starbucks-launch-payments-2012-11 4. Fact sheet: Verismo TM System by Starbucks (2012), accessed April 05, 2013 http://www.news.starbucks.com 5. Grove, J. (2012) How Starbucks is turning itself into a tech company, accessed April 09, 2013 http://www.venturebeat.com/2012/06/12starbucks-digital-strategy/ Reference Grove, J. (2010), Mashable, accessed 5 April 2013. http://mashable.com/2010/10/19/first-look-starbucks-digital-network-is-here/ Starbucks Digital Network (2012), Its available when youre connected to Wi-Fi at most U.S. company-owned Starbucks stores, accessed 5 April 2013. http://digital.starbucks.com/error/not-in-store Noff, A. (2010), TNW The next web, accessed 5 April 2013. http://thenextweb.com/2010/01/11/starbucks-formula-social-media-success/ Practical social media university (2013), How Starbucks Uses Social Media, accessed 5 April 2013. http://practicalsocialmedia.com/case-studies/how-starbucks-uses-social-media-and-what-you-can-learn/ n),Starbucks Use of Social Media Keeps Customers Coming Back, accessed 5 April 2013. http://www.grandsocialcentral.com/hustler-marketers/brand-managers/starbucks-brand-managers/starbucks-use-of-social-media-keeps-customers-coming-back Gembarski, R. (2012), How Starbucks Built an Engaging Brand on Social Media, accessed 5 April 2013. http://www.brandingpersonality.com/how-starbucks-built-an-engagin-brand-on-social-media/ Starbucks (2013), Facebook, accessed 15 April 2013. http://www.facebook.com/Starbucks Checkfacebook (2013), Analyze Enhance Facebook Performance, accessed 15 April 2013. http://www.checkfacebook.com/ Ronan, E. (2013), Huff post Business, accessed 15 April 2013. http://www.huffingtonpost.com/ernan-roman/starbucks-social-media-re_b_2426209.html Ref: Bolling, C. 2002 Globalization of the Soft drink industry, Magazine of Agricultural Outlook, 202, p.27 Vaydia, A.K. 2006 Globalization, Encyclopedia of Trade, Labor and Politics, p.382, ABC-CLIO Inc. Santa Barbara, California. Traill, B. 1997, Globalization in the food industries? European review of Agricultural economics, 24, pp. 390-410 Friedman, T.L. (2006), The World Is Flat: A brief history of the twenty-first century, New York: Farrar, Straus and Giroux.

North Korea and the Nuclear Crisis: The Awkward US-DPRK-ROK Relations E

The recent turn of events in North Korea with its alleged admission to possessing nuclear weapon has created nervous tension in the Far East region. Specifically, North Korea has recently transformed the existing bilateral U.S.-ROK alliance into an awkward triangular ROK-U.S.-DPRK dynamic, significantly complicating the previous bilateral relationships amongst the three as well as making these relationships more difficult to manage. We will trace the development of these relations, to gain a better insight into this long standing conflict and to assess better the future implications surrounding these tensions. Background History of Korea At the turn of the century, Korea was annexed by the neighboring Japan, ending the rule of Korean dynasty and independence. Korea was under Japanese control for 35 years from 1910-1945 and the colonial rule was highly repressive and exploitative. Freedom of speech and press was non-existent, human rights were completely disregarded, farm lands were confiscated under various pretexts, economic and educational opportunities were extremely limited, and Korean workers and peasants alike were exploited under the repressive rule of the Japanese. Japanese surrendered to the Allies on August 15 1945, and the Cairo Declaration of December 1943 issued by the British and US leaders stated that "in due course Korea shall become free and independent". The USSR accepted the Cairo agreement, but proposals made by the USA in 1945 led to the division of Korea into two military zones: the area south of the 38th parallel line under US occupation and the northern area under the Soviet control. In 1948, after some quarrels over the type of state to be established in the Korean Peninsula, the two ... ...na.rpo.at/dprk.html Bibliography Cordesman, Anthony H. â€Å"Is There a Crisis in US and North Korean Relations?† http://www.csis.org/features/cord_nkorea.pdf 30 December 2002. Feffer, John. â€Å"Bush Policy Undermines Progress on Korean Peninsula.† Public Policy in Focus. March 2002. Oh, Kongdan. â€Å"Terroism Eclipses the Sunshine Policy: Inter-Korean Relations and the United States.† Asia Society, 2002. Robertson, Jeffrey. â€Å"New Dynamics in U.S.-Korean Relations.† Global Affairs Commentary. 7 January 2003. Robertson, Jeffrey. â€Å"The Anti-American Blowback from Bush’s Korea Policy.† Global Affairs Commentary. January 2003. Shorrock, Tim. â€Å"Roh’s Election Victory and the Widening Gap Between the U.S. and South Korea.† Global Affairs Commentary. 7 January 2003. The Europa world year book. London, England: Europa Publications Limited, 1989. 30th ed.

Counterproductive Effects in Rewards and Motivation

When employing, retention and parting signify intricate, long term and multi- layered dealings rather than a Counterproductive Effects in Rewards and Motivation simple market deal, employees and employers will be principally careful to avoid entering the relationship with an inappropriate partner but, in speedily moving economic and industrial environments it is rational that a firm's employment needs will be changing too. In this situation, a guarantee of long-term employment would be extremely expensive if the firm is not able to reallocate workers to new tasks as the requirements rose.So, Counterproductive Effects in Rewards and Motivation for employees, surviving and been considered by the firm as a valued component in these conditions becomes a personal challenge, especially if these employees' performance is compared with others' using subjective evaluation systems based not only in performance and results, but also in perceptions and Image. Human Wealth refers to the knowledge and acquired skills; a person has to upsurge his or her ability to conduct activities with economic value. Human Wealth is most often acquired by knowledge on through teaching by others who already have the necessary skills.It is the factor that differentiates raw labor power from skilled expertise at some task or job and as a crucial determinant of productivity. Today's companies' true strength resides in their Human Capital so, an impulse to improve the human development into the organizations becomes crucial to guarantee its survival in this highly competitive world. It is necessary that top & middle management perform a deep auto critic of their attitudes in order to look, find and sustain that motivation that worries us. It is useful to distinguish between firm-specific and general-purpose (or non-specific) Human Capital.Skills and knowledge that increases the person's productivity when working for any of several different employers represents general-purpose Human Capital, an d normally, a firm is unlikely to help pay this kind of tuition. On the other hand, firm-specific Human Capital, like knowledge of the firm's specific accounting system, machines or procedures. It might seem worthwhile for an employer to invest in worker's firm-specific Human Capital.

Stanford Prison Experiment essays

Stanford Prison Experiment essays The Stanford Prison Experiment demonstrates how different people become the roles they play. The students chosen to participate in the experiment are tested strenuously in order to determine their adequacy to perform under conditions similar to those present in prisons. They are considered normal, in terms usually associated with students. Through behaving in their roles, the reactions of others and having their alternatives blocked, the students were transformed into guards and prisoners and their previous roles as students are hidden. Behaving in a role assists a person in becoming an actual holder of that role. From the beginning, the students who are designated to be prisoners are treated as criminals. They are picked up by the police and taken to the police station. Once there, they are finger printed and transported to the location of the Stanford Prison Experiment as prisoners. The students are stripped, searched, given a number and stripped of their identity. The prisoners are made to do push-ups and other demeaning activities that make them behave in their role. On the other hand, the guards are told to keep the jail in order. Although no physical violence is used by the student guards, they certainly behave like guard in other aspects. For example, they lock prisoners in the hole and take food and beds away. By behaving in their roles, the guards and prisoners become the role they play. The reactions of others push the students to become the roles they play. The reaction of the prisoners to the guards turns negative. They start feeling hate towards their captors, while the feelings are reciprocated by the guards. The prisoners are constantly mentally harassed. When the priest is invited to the jail, he acts as if he is visiting a regular jail. Instead of talking religiously, he questions the prisoners about why they have not tried to obtain the services of a lawy...

Free Essays on Christianity And Homosexuality

During the last 2,000 years of Christianity, the conservative Christian public changed its views of others. The Church changed the views about people of other races as being inferior, or savages, or in need of salvation. Conservative Christians have a cynical view of homosexuals. Certain members of the Christian community see homosexuals as being in direct league with Satan. According to some members of the Christian community, homosexuals are a direct threat to society and the sanctity of the family and homosexuality is an abomination. The Christian church teachings is one of the main forces preventing equal rights in homosexual’s lives, as well as in preventing their lifestyle all together. Next to abortion, nothing seems to unite members of the Christian community more than the fear of homosexuality. Recently, mayors allowed homosexuals to receive marriage licenses, something that makes most Christians very upset. It is important that homosexuals, male or female, receive equal treatment. Marriage, according to a Christian, has the purpose of procreation and procreation only. Marriage, in a humanistic sense, is a bond between two people who love and care for each other and who promise to be together until death. This humanistic approach to marriage applies to homosexuals, infertile couples, and many non-religious individuals of the United States. Christians most commonly support their dislike toward homosexuals by saying that according to the Bible, homosexuality is a sin. The Bible takes the blame for many things, but especially for outright rejection of homosexuals. It begins with the story of creation and continues in the books of Genesis, Leviticus, and Romans. It is there that we see the story of Sodom and Gomorrah. Another reason for Christian rejection of homosexuality is that it is unnatural. Once again, the Bible tends to be the basis for this conclusion, although for different reasons. Any sex act that... Free Essays on Christianity And Homosexuality Free Essays on Christianity And Homosexuality During the last 2,000 years of Christianity, the conservative Christian public changed its views of others. The Church changed the views about people of other races as being inferior, or savages, or in need of salvation. Conservative Christians have a cynical view of homosexuals. Certain members of the Christian community see homosexuals as being in direct league with Satan. According to some members of the Christian community, homosexuals are a direct threat to society and the sanctity of the family and homosexuality is an abomination. The Christian church teachings is one of the main forces preventing equal rights in homosexual’s lives, as well as in preventing their lifestyle all together. Next to abortion, nothing seems to unite members of the Christian community more than the fear of homosexuality. Recently, mayors allowed homosexuals to receive marriage licenses, something that makes most Christians very upset. It is important that homosexuals, male or female, receive equal treatment. Marriage, according to a Christian, has the purpose of procreation and procreation only. Marriage, in a humanistic sense, is a bond between two people who love and care for each other and who promise to be together until death. This humanistic approach to marriage applies to homosexuals, infertile couples, and many non-religious individuals of the United States. Christians most commonly support their dislike toward homosexuals by saying that according to the Bible, homosexuality is a sin. The Bible takes the blame for many things, but especially for outright rejection of homosexuals. It begins with the story of creation and continues in the books of Genesis, Leviticus, and Romans. It is there that we see the story of Sodom and Gomorrah. Another reason for Christian rejection of homosexuality is that it is unnatural. Once again, the Bible tends to be the basis for this conclusion, although for different reasons. Any sex act that...

Inflation and GDP Essay Example | Topics and Well Written Essays - 2000 words

Inflation and GDP - Essay Example The chart above demonstrates the Phillips curve, if we assume that the economy unemployment level is at point 0 and that the inflation level is at point x then if inflation increases to point A then the level of unemployment will reduce from point 0 to point 1. if inflation is at point x and inflation is reduced to point B then the level of unemployment will increase from point 0 to 2. Therefore the cost of reducing inflation is increased unemployment. Inflation is the persistent rise in price in an economy over a long period of time, there are two forms of inflation which include cost push inflation and demand pull inflation. Demand pull inflation is as a result of increased demand that exceeds the supply level, when demand increases and supply remains constant then price of the good rises and this is what refered to as demand pull inflation. Cost push inflation results from a number of interactions in the economy, this type of inflation is related to wage rates and the increased cost of production which results into an increase in price of goods. In an economy cost push inflation occurs where workers demand for higher wage rates, when wage rates are increased the cost of production increases. When the cost of production increases then the price of goods increase leading to inflation. When the price of goods increase consumers who are the workers experience a reduction in their real income and therefore demand for higher pay and the cycle continues, however there are other factors that may lead to inflation example increased money supply, increased government expenditure and reduced borrowing rates, inflation can therefore be reduced by reducing government expenditure, reducing money supply and increasing borrowing rates or interest rates. Long run and the short run Phillips curve: Due to rational expectations in the economy the short run and long run Phillips curve differ, the long run Phillips curve is drawn as a vertical line, this concept is due to the natural rate of unemployment that prevails in the economy, when individuals in the economy rational expectations that inflation will increase then the inflation level will be higher than the expected inflation level, diagram below shows the long run and the short run Phillips curve. The chart above shows the long run and short run Phillips curves, if the economy starts at short run Phillips curve 1 and individuals in the economy have rational expectations that inflation will rise, then inflation will rise but the rational expectations will increase inflation to higher level at the same unemployment level and this will lead to a shift in the short run Phillips curve to short run Phillips curve 2, the point market b on the above diagram shows the non accelerated rate of unemploym