Without Morality, The Market Will Destroy Itself - 1867 Words

Without morality, the market will destroy itself. Critics believe market economy and globalization has developed habits, beliefs, and institutions that set back social and ethical agendas. In its efforts to reduce child labor and poverty in poor countries and the promotion of gender equality and environmental protection everywhere. However, over the past decade theologians, scholars, and economists continue to debate the effect markets have on society and different environments. Adam Smith, the father of economics, set out thle principles of market economics in his book, The Wealth of Nations. However, in his other book, The Theory of Moral Sentiments, he was able connect two themes. He discovered that markets serve human needs properly only if markets operate in a moral context. Throughout this paper, there will be determinants for how society is changing, an explanation on how commercialism is replacing Christ centered morals, a research on other macroeconomic concepts and biblical teaching studied, an analysis of the values of a society, and the responsibilities Christians should have in the world. Firstly, there needs to be an evaluation on how determinants of priorities for society as a whole are changing. As a society everyone has a right to health. â€Å"Once a person s existence has been guaranteed, the next most important thing to him is a healthy body. If a person has to spend every waking hour searching for food, that person has little time to worry about freedoms ofShow MoreRelatedHuman Freedom, Consciousness, And Reality1404 Words   |  6 Pagesrights. However, if legal measures are taken and that the girls are prevented from working in the factory, it will not assist them but instead cause more problems. For example, forcing them to leave the factory would mean that they would only stay without anything to do. They would not go to school because the society does not allow them. They would also miss food to eat because it is the factory that ena bles those gets food. To make the matters worse, the investigation indicated that there is no comprehensiveRead MoreMilton Friedm The Limitations Of The Market2139 Words   |  9 PagesIn contrast with Galbraith, Milton Friedman never appreciated the limitations of the market, he was a forceful critic of government. He takes as a starting point Adam Smith’s skepticism, but he is much more toward the relationship between morality and capitalism. He launched a point of view which later generated controversy. He asserts that only people have responsibility. A corporation is an artificial person and in this sense may have artificial responsibility, but business as a whole cannot beRead MoreThe Smartest Guys Of The Room, Or The Most Unethical?1723 Words   |  7 Pages LePine, Wesson, ethics is noted as, â€Å"The degree to which the behaviors of an authority are in accordance with generally accepted moral norms† (Colquitt, LePine, Wesson). The decisions that individual s make on a daily basis have a great deal morality within. Characteristics that aid in the ethical decision making process include dedication, integrity, conduct, and many more. Every company makes its values and ethics known immediately after hiring an employee, or specifically, during the interviewRead MoreThe Degenerative Influence of Advertising on Society Essay1563 Words   |  7 Pagesthem until their principles no longer come from within them. Thus, in my opinion, advertising, unless deeply rooted in high ethical standards, destroys any concept of community, common morality or deep bonding. Advertisements thrust products and services at consumers that they deem necessary in order to be loved, beautiful, happy, and fulfilled. Without these â€Å"necessities,† we feel judged, out casted and criticized. These possessions, however, make us self-loathing. Subsequently, we lose ourRead MoreThe American Dream and the Mode of Production in ‚Äà ºBordertown‚Äà ¹.1147 Words   |  5 Pagessocial equality, ideology, and social economic power. â€Å"The mode of production† is understood to be the basis from which the majority of other social concepts, such as the relations between social classes, political and legal systems, work relations, morality and ideology, and many other phenomena, arise. These social concepts form the superstructure, for which the economic system forms the base. This theory is also related to ordinary people’s struggle for truth, life, liberty, and the pursuit of happinessRead MoreA Time Of Rapid Industrializati on1713 Words   |  7 Pagesgeneral neglect of political details ended up lending itself kindly to some corrupt business practices. An example of these corrupt practices was a trust, which was â€Å"a small group of associates† who â€Å"hold stock from a group of combined firms† and managed â€Å"them as a single entity† (Henretta, 2014, p.548). These trusts were basically a cartel because they were established as a loose organization of businesses that would collude and control the market. The amount of power that large corporations possessedRead More Business Ethics Essay1591 Words   |  7 Pages According to Wikipedia, ethics, also known as â€Å"moral philosophy†, is a branch of philosophy that addresses questions about morality. Concepts such as good and bad, noble, right and wrong, justice and virtue. To business, ethics is a tool to examine principles and moral or ethical problems that arise in a business environment. Therefore, business eth ics can be both a normative and a descriptive discipline. Ethics is a part of the larger social ethics, and also always affect business development.Read MoreAnthropology and the Politics of Development1197 Words   |  5 Pagesthe article by Candea finds that there have been extensive efforts on the part of the Corsicans and other such historically colonized territories, to reclaim their linguistic identity without engaging in pitched political battles. This denotes that even as anthropology has given the Western world the power to destroy native cultures by defining them as inherently counterintuitive to development, the same study of history allows local cultures to identify and reclaim their own cultural roots. PerhapsRead MoreCultural Impact Of Puritans On The 18th And 18th Century1664 Words   |  7 Pagesspread of people across North America. Although their values and ideals are radical in terms of modern beliefs, our culture would not have formed the way it did without the early influence of Puritans. Most confuse the group of Puritans that escaped England with the Mayflower separatists, but that is not the case. Their cause was not to destroy the Church of England or forsake it, nor its reformed beliefs that they were unhappy with, it was to sculpt and whittle their own place of worship in an areaRead MoreThe Ethical Use Of Of Genetically Modified Organisms1691 Words   |  7 Pageson our way to what is becoming known as the Second Green Revolution. The First Green Revolution refers to the successful practices in farm production around the 1950s and 1960s. With higher rates of investment in crop research, infrastructure, and market development, the production of cereal crops was able to triple with only a 30% increase in land area cultivated (Pingali, 2012). This second revolution refers to the use of GMOs as the new innovation that will lead the way to even better advancements

Consumer-Directed Health Care and The Disadvantaged Free Essays

Writing from his aerie as a law professor at Georgetown, M. Gregg Bloche takes a dim view of high deductible coverage, tax-subsidized health savings accounts (HSA’s), recently added to the payment mix for health care in America.   He reasons that the poor and minorities (all too often one and the same) generally earn too little to set aside money in consumer-directed health plans (CDHP), they have imperfect information, they lack access to the best-quality health care, and they may well wind up subsidizing the inpatient costs of the middle and privileged classes. We will write a custom essay sample on Consumer-Directed Health Care and The Disadvantaged or any similar topic only for you Order Now    The author suggests relieving the burden on the poor by providing them more lavish tax subsidies, charging well-off patients more for their health coverage, and giving the poor advantageous prices for â€Å"high-value† care. Where the Case for the â€Å"Disadvantaged† Falls Short Ultimately, Bloche rests his arguments on a shared philosophy of should’s and ought’s, that a civilized society must ensure equal access to the best medical care.   This is a perilous stand, an ideal paradigm of social justice that has extremely elastic boundaries.   As a law teacher, Bloche is concerned chiefly with equity.   Taken to a logical conclusion, such a stand obligates health care leaders to provide addicts disposable needles as the Dutch do (and never mind if they do not want to enter a rehab facility), make injected opioid therapy freely available to heroine addicts (Britain), and permit legal abortion to teenagers without benefit of parental consent (U.S.).   In short, the author may be well-meaning but he presents his case in the realm of political and legal ideology. America has always stood for protection of the oppressed.   Given how minorities have suffered bias, prejudice and outright repression, Bloche argues, their poverty is not of their own making.   They should not be forced to pay for health care by digging into money they need for basic necessities: food, shelter, and utilities.   This argument is weak in three respects. First of all, the income disparities are not as wide a gulf as he makes them out to be.   In the 2005 Census, mainstream White households had median incomes of $49,000 (Census Bureau, 2006) compared to $34,000 for Hispanics and $30,000 for Blacks. But the real story is that the fastest-growing minority, Asians, recorded a median income exceeding $57,000.   Here is a minority that has endured prejudice and residential segregation too but has pulled itself up by its collective bootstraps in America. Second, African-Americans may be twice as likely to be unemployed (8%) as Caucasians (4%) but they are only slightly more prone to go â€Å"bare† where health insurance is concerned: In 2004, 55 percent of African-Americans in comparison to 78 percent for non-Hispanic Caucasians used employer-sponsored health insurance. Also in 2004, 24.6 percent of African-Americans in comparison to 7.9 percent of non-Hispanic Caucasians relied on public health insurance. Finally, in 2006, 17.3 percent of African-Americans in comparison to 12 percent of non-Hispanic Caucasians were uninsured (Office of Minority Health, 2007). While conceding the fact that a good one-fourth of African-Americans rely on public health insurance, the comparable incidence is just 4 percent to 11 percent for Asians and this is notwithstanding the fact that some of the latter are unemployed or live below the poverty line. Third, Bloche also wears blinders in conveniently ignoring the fact that CDHP’s are only one element in the insurance or subsidy mix that include Medicare and Medicaid.   He argues for subsidies and tiering to favor the poor but, in conceding that these will probably not gain traction, he raises a straw man of despairing liberal ideology without offering a workable alternative. Hence, the flaw in his argument ensues: ignoring the fact that CDHP’s are voluntary.   In an analysis conducted at one multi-choice firm, Greene et al. (2006) revealed that those who elected the high deductible CDHP (there was a low-deductible option) were healthier anyway and were better educated than those going with Preferred Provider Organizations (PPO). One concedes that the promise of marketplace reform in lieu of government-imposed restructuring dating from the Clinton presidency has not succeeded yet (Gordon Kelly, 1999).   Health care costs continue to spiral out of control and there are quite simply not enough physicians and nurses to render meaningful, high-quality care all around.   And yet, Bloche as outsider can perhaps be forgiven for not knowing about the existence of charity wards (overcrowded through they are) and the fine coordinated care that goes on all the time in teaching hospitals. The latter quickly shows up on the bills of insured and paying patients but may proceed behind the scenes without indigent patients necessarily knowing about it.   For this is, in essence, the most humane of professions.   This is also why Bloche’s fear that those at the frontlines, in emergency and outpatient services, will refuse to at least inform indigent patients about high-value tests and treatments is refuted in daily practice. One can rely on the innate high empathy of medical practitioners to discern when patients decline care due to cost, and hence to counsel patients that certain â€Å"savings† may put them at risk (White, 2006).   In fact, access to high-value preventive care (for e.g., diabetics, the hypertensive, those at risk for stroke) has been addressed by HCA rules that explicitly mandate â€Å"first-dollar coverage† for preventive care.   This includes those needed for control of chronic disease (Baicker, Dow Wolfson, 2007). That said, talent does go where the money is and paying or well-covered patients have readier access to diagnostic tests and therapies.   Until the government can budget the sums necessary to transform the healthcare system to a welfare state like the British NHS or the Nordic nation models, both White and minority citizens must earn their keep with the kind of hard work, business acumen and economic rewards needed to purchase adequate coverage. References Baicker, K., Dow, W. H. Wolfson, J. (2007). Lowering the barriers to consumer-directed health care: Responding to concerns. Health Affairs, 26(5), 1328-32. Census Bureau (2006) 2005 census: Household incomes by race. Retrieved March 14, 2008 from Greene, J., Hibbard, J.H., Dixon, A. Tusler, M. (2006). Which consumers are ready for consumer-directed health plans? Journal of Consumer Policy, 29(3), 247-262. Gordon, C.G. Kelly, S.K. (1999) Public relations expertise and organizational effectiveness: a study of U.S. hospitals. Journal of Public Relations Research 11, 143. Office of Minority Health (2007) Asian-American profile. U.S. Dept. of Health and Human Services. Retrieved March 14, 2008 White, B. (2006). How consumer-driven health plans will affect your practice. Family Practice Management, 13(3), 71-8. How to cite Consumer-Directed Health Care and The Disadvantaged, Essay examples

International Business Market Culture Perceptions

Question: Describe about the International Business for Market Culture Perceptions. Answer: Introduction: Market culture describes the ideas, perceptions and social values that a community has towards different situations. In the present extremely competitive business environment, understanding the culture of the market is extremely important. In-depth knowledge regarding the culture of the market can help businesses to utilize effective strategies so that it can able to achieve sustainable growth in the market. Many studies have highlighted the fact that understanding the culture of an economy requires proper analysis of several factors. Present global business environment has increases the significance of understanding the market culture of an economy in order to create positive impact on the revenue level. In this report, the focus will be on the market culture of Taiwan. The report will try to include an in-depth analysis of the existing market culture of the Taiwan economy. The report will also focus on the identification of the best possible strategies that can create maximum posit ive impact on the Taiwans market culture. Rationale for the selected country: As per the article by Harrell (2014), Taiwan is regarded as 15 largest importer in the world. Generally, all the rules and regulations of Taiwan are developed in such a way so that it can able to help businesses to enter into the market effectively. Over the years, Taiwan has able to develop in a rapid rate due effective utilization foreign businesses. However, Taiwan business culture is unfamiliar to most of the western organizations. For that reason, majority of the foreign organizations tries to utilize cross-cultural training to provide knowledge to the employees in order to conduct business effectively in the Taiwan market. However, it has been identified that majority of the organizations has able to grow their businesses in the Taiwan market due to high acceptability among the people. Cultural analysis of Taiwan: As per the article by Gelfand et al. (2013) organizations will have to focus on many factors in order to develop effective strategies in the foreign market. Specifically, countries like Taiwan have their own set of perspectives that organizations will have to consider in order to implement effective strategies in the market. As highlighted by Liu (2016) organizations will have to consider several components of Taiwans market culture for the effective utilization of the implemented business strategies. The components are as follows: Values and attitudes: It has been identified that values and attitudes are completely different in different economies. In fact, majority of the time values and attitudes varies within a country as well. Therefore, many organizations face difficulties in expanding their businesses in different countries. Now, Taiwan is developed in capitalist economy. As a result, values and attitudes of Taiwans people is complete different compared to any other European economy. Thus, organizations business strategies will have to be developed in such way so that it can able to create maximum impact on the development of the business perspectives. Education: As per the article by Fujita et al. (2013), Taiwan is presently utilizing digital educational system. The educational structure of Taiwan is developed in such a way so that it can able to motivate student to opt for higher education. It has been assessed that educational structure of Taiwan has able to create positive impact on the economical development of the country. It has been also assessed that educational structure of Taiwan is inducing people to handle multiple tasks at given time. Therefore, it has created massive impact on the knowledge level of the country. Social structure: Taiwans social culture is focused has been developed in such a way so that it can able to provide equal opportunities to all the people in the economy. Furthermore, Taiwan social structure is developed in such a way so that it can able to provide all the women in the economy equal opportunity to grow up in their professional career. As mentioned by Linehan (2013) Taiwans Culture is a mix of Taiwanese aboriginescultures and ConfucianistHan Chinese cultures. Taiwan represents a perfect mix of modern and traditional understandings. For that reason, it has allowed businesses to implement strategies in an appropriate way. Religion: As mentioned by Chang (2015), Taiwan represents a greatly tolerant society that is highly diversified in terms of religious faith. Primarily, the country has three prime religions namely Taoism, Buddhism and Confucianism. However, it does provide opportunities for other religions like Hinduism, Christianity and Islam to have equal amount of opportunities to grow up in the economy. Thus, it highlighted the fact that business strategies will have to be developed in such a way so that it cannot able to hurt any religion feelings. Manners and Customs: As mentioned by Chang (2012) understanding the manners and customs are very important to conduct businesses in the foreign country effectively. Taiwan also has specific manners that businesses have to consider in order to conduct their businesses effectively. For instance, people in Taiwan generally maintain polite manners in order to conduct their businesses effectively. Thus, it is very important for the businesses to maintain proper manners and customs so that it can able to create maximum impact on the business development perspectives. Personal communication: Many studies have highlighted the significance of personal communication in order to develop business in the foreign country effectively. Now, Taiwans official language is Mandarin Chinese. However, the country also utilizes Holo and Japanese languages as well. Thus, business strategies also have to consider the effective utilization of languages so that it can able to communicate with the people in an appropriate manner. Physical environment: Taiwan is a separated Island but it is included in the Asian continent. Taiwan whether is more of a tropical climate. Many studies have identified that around population of Taiwan is around 25 million. Furthermore, the average life span of Taiwans people is around 80 years. Taiwans government makes a conscious effort to maintain low pollution level so that people can able to lead a healthy life. Therefore, it has also induced businesses to utilize healthy atmosphere of Taiwan in order to grow their businesses properly. Aesthetics: As per the article by Lee et al. (2015) aesthetics help organizations to identify the best possible way to conduct businesses in a foreign country. As mentioned earlier, every economy has their own set of values and believes. Therefore, proper maintenance of aesthetics helps business to develop its reach in the international market. For instance, Taiwan is more focused in developing technology-based organizations. Therefore, businesses will have to utilize advance technology in their business processes to gain popularity in the market. Figure 1: Taiwans components of culture (Source: Berry, 2016) Difference between Taiwans market cultures with Singapore: As mentioned by Warner (2014) Taiwan and Singapore is very similar regarding the market culture perspectives. Firstly, both the economy is geographically very small. As a result, both Singapore and Taiwan has to face constant pressure from their larger neighbor. However, both the country has able to grow in a rapid rate due effective utilization of market culture. Now, Singapore represents a multiethnic society that includes Malay, Chinese, Eurasian and Indian communities. Therefore, Singapore represents a well-versed culture that has helped foreign business to conduct businesses in an effective manner. Singapore has also faced lot of issues regarding the maintenance of Indonesian refugees. As majority of the Indonesian people lives below the poverty line, it also has affected the growth rate of the Singaporean economy. On the other hand, Taiwans major threat comes from Mainland China. Taiwan has developed several strategies so that it cannot able to affect the business development p erspectives of the economy. However, Lee et al. (2015) highlighted the fact that Taiwan and Singapore has many similarities in the implemented regulations regarding effective utilization of trade and commerce. As mentioned earlier, Taiwan is among the prime countries in the world that heavily depends on the imports of products. Now, Singapore also imports everything from food products to luxury products. Thus, both are representing export-oriented economy. Furthermore, both Taiwan and Singapore have realized that their neighbors have attempted to reduce demand for the services and products by developing rival infrastructure. Therefore, both the economy is seeking for new markets so that it can able to maintain its growth rate. However, Singapore and Taiwan has differences in the perspectives regarding racism. Singapore has to implement many rules and regulations to maintain their proper culture in the economy. On the other hand, Taiwan does not have faced any major issues regarding racism. Therefore, it has helped businesses from all parts of the world to capture the Taiwan market effectively. Hofstede cultural dimension: Hofstede cultural dimension is probably the most common measurement of culture. It includes five dimensions that help to evaluate all possible aspects of culture. Taiwans Hofstede cultural analysis is as follows: Power distance: Power distance evaluate the extent to which less powerful people in economy accepts the inequality in power. It also describes a particular economys attitude towards the inequality. Taiwan scores relatively higher marks of 58 in this dimension (Chen et al., 2014). Thus, it indicates that Taiwan is a hierarchical society. It also reflects that people in Taiwan accept the hierarchical order in which every individual has their own place and it does not require any further justification. Now, hierarchy in businesses reflects that Taiwan is more focused towards the centralized management where subordinates expect to be guided by the management regarding their way of managing responsibilities. Individualism-collectivism: This dimension describes the relationship between people with the groups in which they belong. Thus, it also reflects the degree of interdependence that a community maintains among all its members. Now, Taiwan represents a collectivistic society that has very lower grade on the individualism. It highlighted the fact that all the people in the community heavily depends on each other. In fact, people perceive their business groups as an extension of family. Thus, it reflects stronger relationship among each other. Therefore, businesses also have to develop atmosphere where every individual can able to maintain strong relationship with each other. Otherwise, it will create negative impact on the business development perspectives. Masculinity-femininity: Masculinity describes the dominance of competitive values in a community like performance driven, assertiveness and success. On the other hand, feminine value describes that dominant value in the society is to have care for others. Taiwan score relatively lesser grades of 45 in masculinity (Fung, 2013). Thus, it reflects that Taiwan is slightly a feminine society. It reflects that organizations will have to develop a caring atmosphere in Taiwan in order to conduct businesses effectively. It also indicates that businesses also will have to consider the well-being of all the employees in order to sustain its position in the market. Uncertainty avoidance: This dimension describes the development of rules and structure to reduce the ambiguity in an organization. Thus, it reflects the extent to which people feel threatened by the unknown or ambiguous situations. Taiwan score of 69 describes that it has greater possibility for avoiding any uncertainty (Hua Nathan, 2016). It also represents the people perceive time is money and have inner urge to work as hard they can. Thus, businesses will have to provide proper atmosphere in order to get best out of the Taiwans people. Long-term orientation: It reflects that how society has able to maintain connection with its own past while dealing with the present and future challenges. In this dimension, Taiwan score of 93 highlights that the society is highly focused in maintaining their tradition in future. However, it also reflects that Taiwan also accept the present changes that is required to develop the financial condition of the economy. Indulgence: This dimension describes the degree to which people try to control their impulses and desires. Taiwan has scored 49 that reflect that the economy does not have any dominant preference. Thus, it highlights that people of Taiwan does not focus too much on controlling their desires. Figure 2: Hofstede cultural dimension (Source: Sun et al., 2013) Conclusion: The above discussion highlights the fact that Taiwan has some unique cultural features that have the potential to create obstacles on the path of foreign business development. Thus, organizations will have to handle all the factors extremely carefully in order to expand business in Taiwan in an appropriate manner. However, the above discussion also highlights that Taiwan is focused to develop businesses so that economy can able to sustain its growth. Therefore, it is up to the businesses to utilize the culture in an effective way. References: Berry, C. (2016). The Last Isle: Contemporary Film, Culture, and Trauma in Global Taiwan. Sheng-Mei Ma. Lanham, MA: Rowman and Littlefield, 2015. ix+ 197 pp. 80.00. ISBN 978-1-78348-338-9.The China Quarterly,225, 286-287. Chang, S. S. Y. (2012).Literary culture in Taiwan: Martial law to market law. Columbia University Press. Chang, W. C. (2015). Religious attendance and subjective well-being in an eastern-culture country: Empirical evidence from Taiwan.Marburg Journal of Religion,14(1). Chen, J. L., Lin, Y. J., Ma, J. P., Lin, M. T. (2014). An Interpretation Case Study of Cultural Creativity in Design Exhibition of" Taiwan Artisan".International Proceedings of Economics Development and Research,81, 1. Fujita, S., Seto, K., Ito, S., Wu, Y., Huang, C. C., Hasegawa, T. (2013). The characteristics of patient safety culture in Japan, Taiwan and the United States.BMC health services research,13(1), 1. Fung, A. Y. (Ed.). (2013).Asian Popular Culture: The Global (Dis) continuity. Routledge. Gelfand, M. J., Brett, J., Gunia, B. C., Imai, L., Huang, T. J., Hsu, B. F. (2013). Toward a culture-by-context perspective on negotiation: Negotiating teams in the United States and Taiwan.Journal of Applied Psychology,98(3), 504. Harrell, S. (2014).Ploughshare village: Culture and context in Taiwan. University of Washington Press. Hua, S., Nathan, A. J. (2016).Chinese Political Culture. Routledge. Kleinman, A., Lin, T. Y. (Eds.). (2013).Normal and abnormal behavior in Chinese culture(Vol. 2). Springer Science Business Media. Lee, Y. C., Wang, C. Y., Weng, S. J., Huang, C. H., Hsieh, W. L., Wu, H. H. (2015, January). Assessing Patient Safety Culture from Nurses' Viewpoints of a Teaching Hospital in Taiwan. InProceedings of International Conference on Application of Information and Communication Technology and Statistics in Economy and Education (ICAICTSEE)(p. 37). International Conference on Application of Information and Communication Technology and Statistics and Economy and Education (ICAICTSEE). Lee, Y. C., Weng, S. J., Stanworth, J. O., Hsieh, L. P., Wu, H. H. (2015). Identifying Critical Dimensions and Causal Relationships of Patient Safety Culture in Taiwan.Journal of Medical Imaging and Health Informatics,5(5), 995-1000. Linehan, M. (2013). Book review: The vitality of Taiwan: politics, economics, society and culture.LSE Review of Books. Liu, J. T. (2016). RESEARCH ON TAIWAN THEME PARKS'EXPERIENCE MARKETING STRATEGY AND REVISIT WILLINGNESS, PURCHASE WILLINGNESS AND RECOMMENDATION WILLINGNESS.International Journal of Organizational Innovation (Online),9(1), 35. Sun, P. C., Lin, M. T., Chung, P. H., Huang, Y. F. (2013). A Cross-Culture Study on Consumer Attitude of Buying Luxury CounterfeitsA Comparison Between Taiwan and Shanghai. InInternational Conference on Business and Information. Warner, M. (2014).Culture and management in Asia. Routledge.

United States Postal Service Essay Example

United States Postal Service Essay The U. S. Postal Service It is important for the U. S. Postal Service to have a high volume of mail to process in order to follow the mission statement. An organization mission is its reason for existence and is expressed in the mission statement (Stevenson 42). Mission of the Postal Service: The Postal Service shall have as its basic function the obligation to provide postal services to bind the Nation together through the personal, educational, literary, and business correspondence of the people. It shall provide prompt, reliable, and efficient services to patrons in all areas and shall render postal services to all communities (USPS 1998). For the Postal Service to â€Å"bind the Nation together†¦Ã¢â‚¬  they would need a high volume of mail from across the country to process on a daily basic. The more mail means a more successful business. Productivity improved at the Postal Service due to the increased use of automation and introduction and later expansion of zip codes. The technological advancements allowed for postal rates to remain low and maintain rapid delivery. Technology is not enough for productivity to increase. We will write a custom essay sample on United States Postal Service specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on United States Postal Service specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on United States Postal Service specifically for you FOR ONLY $16.38 $13.9/page Hire Writer There needs to be proper planning or else technology can reduce productivity (Stevenson 58). Competition from delivery companies such as, FedEx and UPS put pressure on the United States Postal Service to increase productivity to keep rates low and maintain rapid delivery. Operations Management makes point that pricing is very important to consumers in the selection process and that there is a trade-off between price and quality (Stevenson 40). Having lower prices and/or rapid delivery will determine whether someone will choose to mail their package with the Postal Service or the competition. The United States Postal Service took several steps to remain competitive, first starting with customer service. The Postal Service began working to better identify their customer’s needs; this included adding customer service managers, expanding retail hours, and measuring customer satisfaction. The text explains that â€Å"Identifying consumer wants and/or needs is a basic input in an organization’s decision making process† (Stevenson 40). The Postal Service also underwent a reorganization where management positions were eliminated and divisions were consolidated to reduce overhead. These measures all lead to increased production and speedier delivery to remain competitive. The results of the Postal Service’s changes were very successful. The reduced bureaucracy and overhead lead to improved service, customer satisfaction and reduced the need to increase postage rates. The reorganization eliminated some programs, cut cost, attracted new business, and reduced the Postal Service’s projected deficit. The Postal Service employed a quality-based strategy to accomplish these goals. They focused on improving the quality of its organization, as quality is maintains and attracts new customers (Stevenson 50). The increased use of e-mail has an inverse effect on the Postal Service’s production. The more mail that is sent electronically means less mail is being processed by the Postal Service. The less mail being processed equals decreased productivity (Stevenson 53).

POPULATION REDISTRIBUTION essays

POPULATION REDISTRIBUTION essays Population redistributions based on ethnicity have defused intense rivalries in the recent past, and could be a solution to the internal ethnic crises for nations such as the former Yugoslavia. Currently described by the media as "ethnic cleansing", Population redistributions have been the focus of much controversy throughout U.S. and world history. To those affected, Population redistributions can be economically and emotionally devastating. It can also lead to enormous tragedies causing thousands of deaths when conducted in a brutal manner. The results of various population redistributions are examined throughout this paper with the focus on the Japanese Internment camps in the U.S. and the current crises in the former Yugoslavia. There are examples of population transfers that have taken place in the twentieth century. In 1923, Greece and Turkey signed the Treaty of Lausanne. The two rival nations agreed to expel 150,000 Greeks living in Turkey, and 388,000 Turks living in Greece back to their ethnic homelands. Except in Cyprus where the populations remained mixed. Turkey and Greece have not taken up arms against each other again. After World War II eight million people of German ethnicity were expelled from their native communities in Poland and throughout Eastern Europe, due to agreements made by the Allies at the Potsdam Conference. Hundreds of thousands of Germans died or were killed during the transfer due to the brutal manner in which it was carried out. Due to the lack of diversity and conflicting cultures the long-term results of the population transfer have ended internal ethnic problems in Poland since then. Israel expelled their own settlers from occupied land (which is currently the new Palestin ian nation) in order to bring about a lasting peace between the two former rivals. After bombing Pearl Harbor, Hawaii on December 7, 1941, 120,000 Japanese and Japanese-Americans living in Oregon, Washington, California, and A...

When Do IB Results and Scores Come Out

When Do IB Results and Scores Come Out SAT / ACT Prep Online Guides and Tips You’re in an IB Diploma Programme or a few IB classes, and you have slaved all year (or two years) studying for your SLs and HLs. You sat for the exams - where you probably developed carpal tunnel syndrome. Also, you can relate a little too well to this video, but you are hoping you did a little bit better on your IB exams.So when do you get your scores? How do you get your scores? What does your score mean? I will answer all of these questions and more in this article. For the May IB Exam Dates The scores are issued on July 5 of the same year.For example, if you took your test May 2015, you received your scores July 5, 2015. For the November IB Exam Dates The scores are issued on January 5, in the year following the exam.For example, students who took exams in November 2014 received their results on January 5, 2015. Mark your calendar! How Do You Check Your IB Scores? Ask your IB course coordinator for your candidate PIN. Using that number, you can access your own results via the IB’s candidate results website.You will be able to do so one day after results are issued: on July 6 for the May session and January 6 for the November session. You Got Your Score: What Does It Mean? Tests Are Graded on a Scale of 1-7 For a full breakdown of what each score means (what the score criteria is) check out this document from the International Baccalaureate Organization. What IB Scores Will Colleges Accept for Credit? Each school may have slightly different qualifications for getting credit for IB courses, but most college classes give you credit for IB HL classes with an exam score of 5 or higher.Some colleges even wave your general education requirements for those students with an IB Diploma.Others like University of Southern California (my alma mater) give you a full year’s worth of credit to those with an IB Diploma.Look up colleges' individual IB college credit policy by doing a Google Search forâ€Å"[Name of College/University] IB credit policy.†Most universities have a dedicated web page for explaining their IB credit policy. What If You Feel Like Your Exam Score Was Unfair? After the results have been issued, schools can request re-marks for particular students if they feel the result is undeserved.Schools can also receive a range of different types of feedback on their students' performance. If you wish to do so, please contact IB. What’s Next? Are you hoping to squeeze in some extra IB classes? Learn about the IB courses offered online. Studying for the SAT? Check out our complete guide to the SAT.Taking the SAT in the next month? Check out our guide to cramming. Not sure where you want to go to college? Check out our guide to finding your target school. Want to improve your SAT score by 160 points or your ACT score by 4 points? We've written a guide for each test about the top 5 strategies you must be using to have a shot at improving your score. Download it for free now:

A Comparison Among the Writings of Taylor, Palmer and Emerson Essay

A Comparison Among the Writings of Taylor, Palmer and Emerson - Essay Example It is the classic quandary: if an all-powerful God loved us, why does He allow a man to be harmed by evil? Taylor’s response reconciles God as all-good, man as a moral being, and evil as the result of human choice. Moral depravity is his sinful character, his â€Å"state of mind and heart† that pertains to â€Å"guilt† and â€Å"wrath†. God created man to be good, but at the same time allows man the choice of whether to be obedient to His divine will or to pursue his own selfish interests. Man is saved if he chooses to follow God’s will rather than his own. Sin, therefore, is seen as an integral part of salvation. By giving in to his moral depravity, man creates the evil, not God. However, because he has a choice, man can rise from this moral depravity and choose God, thereby meriting salvation. God did not create the evil, but by allowing man the freedom to choose evil he also afforded man the chance to choose well. This debunks the notion that God could have prevented all sin or at least the present degree of sin. In Taylor’s works, he speaks of God as a personal Father, with a mind and will whose intentions man tries to understand. God provides the opportunity for man to exercise his moral nature, that is, to choose the virtuous over the evil. The interaction between God and man is one of dynamic interaction, with God offering the choice and man taking the volition to make the choice. Palmer was more of a mystical writer. She espoused the experience of holiness as the road to sanctification. Holiness is seen as a mystical union with God. It is only when one abandons his own efforts and surrenders all to God that he gets to experience the faith necessary for him to live a sinless life. Sanctification is obtained when one is united with Christ, bathed in the blood of Christ, because it is only through Him that man can reach God.

Global Law Essay Example | Topics and Well Written Essays - 500 words

Global Law - Essay Example The company named 1plusV had claimed that Google was restricting the utilization of its powerful system especially made to attract advertisers (Kanter, 2011). Basically, the article was highlighting the fact that Google had been accused of promoting unfair competition by unduly restricting trade. Unreasonable restraint of trade is actually a legal issue in business. The right to do business or put up a business has limitations provided by law. One of which is the prohibition against unfair competition. Unjustifiable restriction of a certain trade is one aspect of unfair competition. Established and big businesses are the ones most likely to have this tendency. Some desire to monopolize a certain type of business. They do not want any competitors. These businesses aim to maintain their market position. This is directly associated to business greed. Sometimes, they implement marketing strategies that weaken its new competitors. As a result, the new businesses experience a substantial l oss of profit. It will eventually choose to stop its operation. Governments of the world have been aware of this business reality. Thus, they issue business laws to promote fair competition. The latest accusation against Google can somehow illustrate the issue on unfair competition.

Torsional Pendulum Preliminary Experiment Essay Example for Free

Torsional Pendulum Preliminary Experiment Essay Research and equations: As we are working in circular motion, rather than linear motion, the equations that will help me investigate the Torsional pendulum will have to be derived. Here is how it is derived. Using Force= Mass x Acceleration which is what you use for linear motion, this becomes Torque=Moment of Inertia x Angular acceleration. Using Force= -kx from a simple pendulum, this becomes Force=- Torsional Constant x Angular displacement Therefore This can definitely be compared to a=-?2x and becomes However therefore I then found out the exact expression which allowed me to directly work out I and K. The moment of inertia was simply mL2 However for the Torsional constant I first found the formula for the polar moment of inertia which was Ip=?d4/32 and the angle of twist ?=TL/GIp this was rearranged to T= GIp/L where T is the Torsional constant, then substituting in Ip I got Torsional constant= Using the equation I can now substitute in expressions for I and K to get an overall equation which came out to be: T=2? T=Time Period I=Moment of Inertia of the bar L=Length of wire G= Shear Modulus of material d= diameter of wire The following web pages were used to help me derive these equations: http://www.engin.umich.edu/students/ELRC/me211/me211/flash/tors_derivation15.swf http://farside.ph.utexas.edu/teaching/301/lectures/node139.html Preliminary Experiment: Aim: To investigate the relationship between Time period and the length of the wire on a Torsional pendulum. Factors to vary and control To ensure a fair test I must make sure that only factors that want to vary will change, therefore as I am investigating the effect of changing the length of wire on the time period I will only vary the length of wire. This means that the following must stay the same: * Mass of the metal bar, including same diameter and length each time, these are all related to the moment of inertia. * Type of wire (material) and its diameter, these are related to the Torsional constant. Diagram: Equipment: * Retort Stand with clamp to hold the wire and bar when oscillating. * Bung cut into two halves so I can change length of string easily. * Metal Bar. * Approximately a meter long wire. * Stopwatch to record the Time periods. * Micrometer to measure diameter of the wire and the metal bar * Meter long ruler to measure out correct lengths of wire and measure length of the bar. Method: * Set up the apparatus as shown in the diagram above. * Ensure the wire is fixed firmly around the centre of the bar, so that when left freely it rests in its equilibrium position. * Using 0.1 meters as the starting point, make the length 0.1m using a meter rule, measuring from the base of the bung to the top of the bar at the knot. * Turn the bar 90 degrees anticlockwise and release it, start the stopwatch at the same time of release. * The time period for one complete oscillation is; for the end of the bar to go around clockwise once and changes direction then anticlockwise until it changes again, the moment it stops just before changing direction for a second time is one oscillation. Allow 5 complete oscillations for once length and divide the end time by five. * Record the time period on a suitable table. * Loosen the clamp and increase the length by 0.1m and repeat above steps until approximately 8 results are complete. * Now measure the length of the bar using a meter ruler, and the diameter of the bar using a micrometer. Also measure the length of the wire using a meter ruler and its diameter using a micrometer. Record all these results. To ensure that the experiment is carried out in safe environment I will make sure that I have plenty of space around me, with any obstacles removed to ensure the experiment can run smoothly. Theory: If simple harmonic motion applies, which I am assuming it does as shown in the equations above, also there is a clear similarity between the time period for a Torsional pendulum and for a mass spring system which is simple harmonic motion, as shown in these 2 equations. and Simple harmonic motion is defined as; an oscillation in which the acceleration of an object is directly proportional to its displacement from equilibrium and has a restoring force directed back towards equilibrium. I am investigating for the preliminary experiment the effect on time period when the length of wire is changed. From the equation derived T=2? I can see that theoretically the relationship between time period and length should be T?L0.5. Therefore an increase in length will increase the time period. Results: Length (mm) Time Period (s) Log l log T 100 6.16 -1.00 0.79 200 8.18 -0.70 0.91 300 9.59 -0.52 0.98 400 11.00 -0.40 1.04 500 12.18 -0.30 1.09 600 13.45 -0.22 1.13 700 14.22 -0.16 1.15 800 15.32 -0.10 1.19 Extra Results: Measurement Diameter of wire 0.42mm mass of bar 201.1grams length of bar 204mm Conclusion: From the graph I can come to a simple conclusion that as the length increases the time period increases. However it is obvious that this is not a linear relationship, therefore I need to use log log graphs to help me get the relationship. As I originally worked out that there is a relationship between time period and length for the Torsional pendulum, I can therefore say that T is proportional to l (T? l). However I can change this to T=alb where a and b are constants to be determined. I can determine these using a log log graph where logT=blogl+logA which is in the form y=mx+c Using the values of logT and logl in the results table above, I produced the log log graph below. From the graph you can see that the gradient which is b = 0.4375 And that logA=1.225, therefore to get A I would unlog it, 101.225= 16.788 (3.d.p) So if A= 16.788 and b=0.4283 then the relationship becomes T=16.788 x l0.4375 Evaluation: There are clearly difficulties and problems with this method which will cause inaccuracies in the results. I will now outline the problems and estimate a percentage error for each one. * Measurement of the length of the wire. The meter ruler is accurate to à ¯Ã‚ ¿Ã‚ ½ 0.5mm, as the smallest division is 1cm. The measurements I made were 10cm to 80cm, therefore maximum error is (0.5mm/100mm) x100= 0.5%, and the minimum error is (0.5mm/800mm) x100= 0.0625% error. Therefore average error is approximately (0.5+0.0625)/2=0.28125%. * There is also error in the time periods as its difficult to know exactly when to stop the stopwatch. You must stop it when it stops and is just about to change direction. However I may stop to early or too late, this causes random error, and therefore time period will be higher or lower than the true value. I predict that this will cause a maximum error of à ¯Ã‚ ¿Ã‚ ½ 0.5 seconds, this includes the error for a human reaction time, which can only react as fast as 0.1 seconds. Max error for the results I obtained would be (0.5/6.162)x100=8.114% and minimum error (0.5/15.318)x100=3.264%. These errors are very significant and will definitely cause inaccuracies in my results. The time I recorded was accurate to à ¯Ã‚ ¿Ã‚ ½0.05seconds, therefore maximum reading error was (0.005/6.162)x100=0.081%, this is however a lot less significant than experimental error. * The scale is accurate to à ¯Ã‚ ¿Ã‚ ½0.05 grams. Therefore maximum error is (0.05/201.1) x 100 = 0.0249%, therefore this error was not so significant. * The micrometer is accurate to à ¯Ã‚ ¿Ã‚ ½0.005mm, as smallest division is 0.01mm, therefore error for my reading was (0.005/0.41) x 100 = 1.219%, this error was quite significant and a lot larger than I expected. The value for the gradient I obtained was 0.4375, however I was expecting 0.5, therefore there is clearly errors in the time period and length, which is what determined the gradient, with reasons for these errors stated above. The error for the gradient will be the total error of the time and length, therefore approximately 6% error, when adding average most significant error of the time period and length. Using the Equation T=2? I can work out the overall error of my experiment. As 2? x =T and as I found out that T=16.788 x l0.4375 Therefore 2? should be equal to 16.788 if my experiment had no errors. I will now work out how close to this value I actually got. =2? = 14.12 Therefore the total error from what the true value should be is [(16.788-14.12)/16.788] x 100= 15.89% From all the percentage errors above I can see that there are clearly issues with this preliminary experiment and that changes will have to be made for the final experiment to increase accuracy and reduce errors.

Language, Power and Discourse of Sexuality: The case of Governor McGree

Language, Power and Discourse of Sexuality Foucault asks "What are the links between these discourses, these effects of power, and the pleasures that were invested by them?" (Foucault, 11). In the case of New Jersey governor it seems clear that power, language and pleasure were very much related in his speech on August 13, 2004, in which he announced his resignation, that he had had an affair with a man, and that he was a "gay American." A man in a position of power was both given power and gave power to the general public with his announcement. Consequently he opened up a multiplicity of discourses on the matter ranging from the true reason for his resignation, to the true meaning of the word Gay, to the effects that his coming out would have on the gay community. The case of governor McGreevey showed how language can be powerful, helpful and harming all at the same time, furthering Foucault's suggestion of strong links between discourse, power and pleasure. McGreevey exercises a great deal of power in choosing the things that he says in his speech and even the ways that he says them. He uses his words to benefit him. The majority of the speech sounds like a plea to the people of New Jersey and the American public. He asks for the audience to sympathize by speaking of his struggle and confusion. So, when McGreevey says, "And so my truth is that I am a gay American. And I am blessed to live in the greatest nation with the tradition of civil liberties, the greatest tradition of civil liberties in the world, in a country which provides so much to its people" the audience feels a pathos for him. This statement is a direct call for forgiveness and sympathy, even before they have heard the whole case. It calls for the American ... ...ew Hampshire: University Press of New England, 1996. 119-143. Foucault, Michel. "We 'Other Victorians'" and "The Repressive Hypothesis."The History of Sexuality, Volume I: An Introduction.Trans. Robert Hurley. New York: Vintage, 1980. 3-13, 17-49. Gendar, Alison and Standora, Leo. "Gov's groove no secret around town". New York Daily News Saturday, August 14th, 2004. Huffinton, Arianna. "Drama of New Jersey governor teaches us that to be gay is to be normal". Ariana Online August 16, 2004 Lazarus, Edward. "The Issues Governor McGreevey's Resignation Raises: Stigma, Acceptance, and the Difference Between Legal and Social Change". Thursday, Aug. 19, 2004 "McGreevey: I am a gay American" www.cnn.com/2004/ALLPOLITICS/08/12/mcgreevey.transcript/index.html Santos, Fernanda. "Instant hero in gay community". New York Daily News Friday, August 13th, 2004.

Bourdieu and social class within the educational system

The subject of social class within the educational system seems to be the elephant in the room. Issues of race, gender, discrimination and making safe places are addressed constantly within the pedagogy yet we ignore the realities of social stratification, especially when it comes to the classroom and the curriculum we are expected to teach. According to Bourdieu, the education systems of western societies function in such a way as to legitimatize class inequalities (Bourdieu, 1977).Success in the education system is enhanced by the possession of cultural capital (which is etermined the dominate culture) and Lower-class pupils do not, in general, possess these traits. Bourdieu then supposes that the failure of the majority of these pupils is inevitable. This, he postulates, explains class inequalities in educational attainment. , For Bourdieu, educational credentials help to reproduce and legitimatize social inequalities, as higher-class individuals are seen to deserve their place in the social structure.Place in the social structure is not pre determined and education often is a factor in the upward mobility in SES. Muller and his team describe cross-national imilarities and differences in the two steps in which education intervenes in the process of intergenerational class mobility: the link between class of origin and educational credentials attained, and between these credentials and class position allocated to (Muller et al. , 1989).They conclude that the patterns of association between class origin and education, and between education and class destinations are similar across the nine nations. However, the strength of these associations demonstrates cross-national variations. This paper is one of the first comparative tudies of social mobility, which used the data sets collected in the early 1970s from nine European countries investigated in Comparative Analysis of Social Mobility in Industrial Nations (CASMIN) project.Nevertheless, this article supports FJG hypothesis which argues that class origin inequalities in relative mobility chances will be roughly constant across nations . Social mobility, class and education is further explored through a longitudinal study conducted by Johnson, Brett & Deary (2009). They proposed that social class of origin acts as ballast, restraining otherwise eritocratic social class movement, and that education is the primary means through which social class movement is both restrained and facilitated, thereby giving weight to Bourdieu's theory of Cultural Reproduction.They conclude that parental social class attainment contributes to educational attainment, which in turn contributes to participant social class attainment, suggesting that educational attainment contributed to social class stability. Education is important to social mobility and, thus, appears to play a pivotal role in the association between ability and social class attainment. When looking at the relationship between ability and socia l class attainment, it is useful to also look at the different types of culture capital.Andersen and Hansen (201 1), for example, distinguish between two interpretations of cultural capital: â€Å"narrow' and â€Å"broad. † The narrow interpretation refers a child's exposure to ‘high cultural' products or activities (Bourdieu's concept ot objectified capital): tor example, having objects of art at home, or a tastefully furnished home, visits to the theatre or art museums, or playing the piano (p. 608). These signs of high culture may not mprove a student's work in any objective way, but they are rewarded through subjectivity involved in assessing academic performance.The same is true of the broad interpretation of cultural capital, which is â€Å"general linguistic skills, habits, and knowledge, including cognitive skills,† which are â€Å"used in a strategic manner by individuals, who thereby may receive advantages or profits† (p. 608). This kind of cult ural capital is passed from parents to children through school work (p. 608). Bourdieu's description of educational capital encompasses this outlook. One ofAndersen and Hansen (2011) implications in schools which supports Bourdieu's theory of cultural capital is that: â€Å"Students from classes with highest cultural capital will perform the best academically, on each horizontal level† (of social class) (p 611) This is often seen played out when looking at the Socio Economic Status schools. Bankston and Caldas (2009) examine how legal desegregation of American schools starting in the 1950s and 1960s was countered by de facto segregation due to â€Å"social class, residential patterns† and other forms of social marginalization.Since the verage socioeconomic status of a student population affects a school's educational achievement levels, upper and middle class families eluded and hindered desegregation by moving to different school districts, suburban communities, by ch oosing private schools etc. Bourdieu's concept of education through institutional capital sees education as a place where one acquires the skills to enter different positions within the labour force -and those positions in turn determines one's socioeconomic status..Bankstone and Caldas state that policy assumes that differences in educational achievements are caused by the concrete schools and in articular by its teaching staff. Schools are believed to determine socioeconomic conditions instead of the other way around. As educators, not only must we be aware that class differences are present in the classroom, but, perhaps, look for ways to minimize the gulf between classes and increase capital culture in those who do not possess as much as others. Technology may be one way to do this. There seems to be a push towards using new technologies in the classroom.Considering class inequality and cultural capital, an educational model that aims to bridge the divide by bringing students to gether to the ame level of technological proficiency would be desirable. Kapttzke (2000), following a case-study in an Australian school, concludes that integrating student- based projects using information technology is a way to bring students with tech sa'. n. y back from the brink of alienation. Kapitzke states that â€Å"teachers who ignore the texts, identities, skills and interests of the young do so at their own peril. † (p. 0) Faced with a growing techno-cultural capital gap, educators need to â€Å"view students as fellow explorers and co-workers† (p. 60) and possibly working on innovative rojects like revamping a school's computer network. The student who led the project ended up teaching not only students but teachers too. Not only would cultural capital be affected, it is most likely that a student's social capital Conversely, a study done in Californian schools shows a different side of the story. Cuban (2001) and fellow researchers explored the paradox of high access to technology with low real use.This was explained by traditional constraints on teachers such as time and structure, as well as annoying deficiencies in the technologies, such as computer crashes, that limited teachers' initiatives. The teachers stressed â€Å"that using computers in their classes made demands upon them that made their Job harder. † (p. 828) In the end, â€Å"inadequate time in the daily schedule to plan work together goes to the heart of teacher use of new technologies and their preferred teaching practices† (p. 28) and resulted in the teachers preferring traditional teacher-based discussions, lectures and activities supplemented with some time for technologies. Cuban and his colleagues believe that technology will never revolutionize the classroom; instead, â€Å"historical legacies of high schools in their chool structures and technological flaws will trump the slow revolution in teaching In conclusion, the Kapitzke article highlights an innovative practices† (p. 830). way of maximizing tech-sawy students' cultural capital and thereby pushing for equality and integration.However, as the Cuban article points out, technology will likely be relegated to special projects when deemed appropriate by a teacher relying on various methodologies. While dynamic technologically innovative teaching methods have their place they are not the magic answer to solving cultural capital and class inequalities.

Starbucks Case Study

Starbucks in 2004: Driving for Global Dominance Strategic Management STRA 703 Assignment Prepared by: Sherif Hendi (M1100758) Presented to: Dr. Gamal Shehata Questions Q. NO. 1 What are the key elements of Starbucks strategy as of 2004? (What is the store concept, the customer offerings and differentiators? The expansion strategy? The financial strategy? The personnel management and social responsibilities? Conduct a five forces analysis? ) Q. No. 02 What was the original strategic vision and objectives and how did they evolve? What is your opinion of Starbucks’ mission statement? What grade would you give Howard Schultz for his job as the CEO Starbucks and why? Q. No. 3 What is your assessment of Starbucks financial performance during years 1998-2003? (Growth rates, profitability, control of major cost categories, financing, ROE, and P/E ratio? ) Q. No. 04 What were the key issues faced by Starbucks in 2004? Q. No. 05 What recommendations would you make to Howard Schultz to sustain the company growth and support strong financial performance in the years ahead? Q. NO. 1 What are the key elements of Starbucks strategy as of 2004? ANS: Key Elements of Starbucks’ Strategy Starbucks adopted a lot of innovative strategies throughout its journey from 1971 to 2004. These strategies in brief are as follows:- * The restaurant/store concept * The offering of Innovative product line * Differentiation from competition * National and international expansion * Distribution channels (Pepsi partnership/online store/Dreyer partnership) * Efficient Financial management (Centralized Information Systems) * Capitalizing on enhancing the people element * Engaging in social responsibility programs (CARE). Competitive Advantages or Differentiators Their differentiating elements are as follows:- They were the pioneers to introduce espresso bar idea in USA * Mail order sales * Word of mouth marketing * Employee motivation strategies to attain improved employee commitment * Convenient distribution channels * Introducing chemical free cultivation process. Q. No. 02 What grade would you give Howard Schultz for the job he has done as CEO of Starbucks? Be prepared to support you r answer based on how well (or not so well) he has performed the five tasks of strategic management discussed in Chapter 2. ANS: Howard Shultz gets a grade of 95% in his Strategic Management approach. In my opinion Howard Shultz just didn’t do perfect in the area of marketing as he did not spend adequate budgets on advertising and product innovation. Last but not the least is that he did not attempt to study the environment properly while entering into new geographical areas e. g. he opened a store down street in Chicago which was not a good idea due to cold weather conditions. Other than that, he made a great task of performing all the five tasks of Strategic Management Q. No. 3 What was Howard Schultz’s original strategic vision for Starbucks? Is his present strategic vision for Starbucks different from the one he had in the 1980s? How many times has his strategic vision changed? Is his present strategic vision likely to undergo further evolution? ANS: Howard Shultz original Strategic Vision â€Å"To establish Starbucks as the most recognized and respected brand in the world. † Strategic Objectives * They wanted to have 15,000 stores by the year-end 2005. * They aimed to provide a great work environment and treat each other with respect and dignity. * They believed in taking on diversity as an essential component in the way they do business. * To apply the highest standards of excellence to the purchasing, roasting and fresh delivery of coffee. To develop loyal and satisfied customers all of the time. * To contribute positively to their communities and environment, and recognize that profitability is essential to future success of business. How did they evolve? At the earlier stages they promised themselves that they will not leave even a single stone unturned to make Starbucks the most recognized and re spected brand in the world. Therefore, they thought that this could only be possible if they will develop these strategic objectives because these are basis to earn the respect and fame for any business. Q. No. 3 What is your assessment of Starbucks financial performance during years 1998-2003? (Growth rates, profitability, control of major cost categories, financing, ROE, and P/E ratio? ) Growth Rate| Years| 1998| 1999| 2000| 2001| 2002| 2003| Growth rate| 0| 0. 2889| 0. 29095| 0. 2164| 0. 2415| 0. 2391| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Profitability| Years| 1998| 1999| 2000| 2001| 2002| 2003| Operating profit margin | 8. 34| 9. 29| 9. 4| 10. 57| 9. 6183| 10. 42| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ROE| Years| 1998| 1999| 2000| 2001| 2002| 2003| Return on equity| 8. 6| 1. 58| 8. 23| 13. 1| 18. 35| 12| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Price Per Earning Share| Years| 1998| 1999| 2000| 2001| 2002| 2003| Price Per Earning Share| 0. 19| 0. 27| 0. 24| 0. 46| 0. 54| 0. 67| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Control of Major Cost Categories In this portion we have analyzed that how Starbucks controlled its fixed cost. If we talk about the locations, it was very expensive to purchase land and then develop it as a store, so to overcome this problem Starbucks started leasing the land for long term periods. In our opinion, it was a quit impressive move to cut down its fixed cost. Secondly they observed that to get the license was too costly for them, so they made contracts with the partners who had license with them. Financing For the financing, Starbucks instead of taking loans preferred raising the equity. It was a better idea to generate capital because they did not have to pay any short term and long term interests against the borrowings. Q. No. 04 What were the key issues faced by Starbucks in 2004? Every company faces major challenges, even companies that are as successful as Starbucks. Although they have an outstanding reputation, have won many awards like top sustainable retail store award and most ethical company award etc, and even give back to their community, they are still facing challenges like any other company. Following are the most obvious challenges that Starbucks is dealing with:- * Schultz was overflowing with the ideas for the company, early on he noticed that first-time customers sometimes felt uneasy in the stores because of their lack of knowledge about fine coffees and because store employees sometimes came across as a little arrogant or superior to coffee beginner. Howard Schultz when came back from Italy shared his ideas for modifying the format of Starbucks’ store with Baldwin and Gordon Bowker. But instead of winning approval for trying out some of his ideas, Schultz encountered strong resistance but after a year Schultz succeeded in winning the approval from Baldwin and Bowker. * After sometime Baldwin and Bowker again went against th e ideas of Schultz so he became so frustrated and left Starbucks in late 1985 to open his own separate Espresso Bars in high-traffic down town locations. Schultz acquired Starbucks in 1987 and after the 20 months of acquiring, some employees felt unappreciated that there was a feeling of prior management had abandoned them. So, Schultz decided to make building a new relationship of mutual respect between employees and management. * Starbucks lost its money when it expanded market to Chicago because in Chicago that was the first downtown store opened on to the street rather than into the lobby of the building where it was located; in the winter months, customers were hesitant to go out in the wind and cold to acquire a cup of coffee. It was expensive to supply fresh coffee to the Chicago stores from Seattle warehouse. * The challenge to Starbucks, in Schultz view, was how to attract, motivate, and reward store employees in a manner that would make Starbucks a company that people would want to work for and that would generate enthusiastic commitment and higher level of customer service. * A values and principles â€Å"crisis† arose at Starbucks in 1989 when customers starting requesting nonfat milk in making Cappuccinos and lattes (an espresso coffee with frothy steamed milk) So, Starbucks started selling both fat milk and nonfat milk Cappuccinos and lattes. They were facing the issue of Wi-Fi (wireless internet service) in 2002, the number of accesses was in the millions by T-Mobile; internal research showed that the average connection last approximately 45 minutes So, in October 2003, Starbucks announced that they will expand Wi-Fi capability to additional locations and would have 2700 stores equipped wit h wireless Internet access by year end. * They were also facing challenges from their competitors. In 2003 there were an estimated 14000 specialty coffee outlets in the United States but they were not competent enough to exert pressure at Starbucks. Q. No. 05 What recommendations would you make to Howard Schultz to sustain the company growth and support strong financial performance in the years ahead? Recommendations After analyzing the whole case study, we became able to give few suggestions to Howard Schultz which can be handy to sustain the growth and support strong financial performance in the forthcoming years:- * He should spend more budgets on advertisement of products. He should bring innovations in his products because we saw in this case study that he was inspired by espresso bars so he imitated the whole theme of Italian espresso bars and the idea of dark roasted bean was an older one as well. * Before entering to any new geographical region he should study the market environment of that particular region as we saw that at Chicago there was an issue of cold weather and his store was at down-town-street. Furthermore, the labor rates and rents of building were higher as well. * At the stores Starbucks’ technique to teach customers about how to make coffee was not a good idea ecause it does not support their business model. Therefore, it should be avoided in future. Above elaborated things were having details about the strategies of Starbucks which drove it for the Global dominance till 2004. Starbucks is in fact the recognized and respected brand in the world and if it can overcome the shortcomings which we identified then nobody can create bother for it to be successful and there will be no point left as a mistake on its part. Reference www. starbucks. com Case Study â€Å"Starbucks in 2004: Driving for Global Dominance† written by Arthur A. Thompson, Amit J. Shah and Thomas F. Hawk. Starbucks Case Study Conner A Intro to Business 3/26/2013 Case Study Consumer Behavior in the Coffee Industry Did you know one franchise alone dominated an entire payment-processing market in just one year? You might have heard of this giant company by the name Starbucks. Howard Schultz, CEO of Starbucks, had a significant role in the company’s growth. Starbucks has steadily dominated the coffee market and has even extended to being a 3rd home for many of its consumers. Based in Seattle, Starbucks had significant competition when it opened its first store in the Pike Place market in Seattle, yet still managed to become superior.Starbucks used new advertising tactics and presented a unique experience for its customers, all of which was a game changer in the business world. Starbucks was created when three friends opened a small store to sell coffee beans and roast in 1971[1]. Jerry Baldwin, Gordon Bowler and Zev Siegl opened their store in the heart of the unique open air market in downtown Seattle . Located just off the harbor, Pike place market was the optimal location and attracted many residents and tourists.After ten years of incredible growth, Jerry Baldwin hired Howard Schultz as head of management. When Schultz first started, he slowly learned the coffee industry and helped made subtle but significant changes. For example, Schultz noticed that â€Å"first-time customers sometimes felt uneasy in the stores†[2] so he developed â€Å"customer-friendly sales skills and produced brochures that made it easy for customers to learn about fine coffees†2 Schultz had the vision of making Starbucks a coffee lounge versus a bar after being inspired by eastern traditions.Even though he did not agree with the new direction, Baldwin allowed Schultz to open one espresso bar and in 2 years, Schultz was able to buy out Baldwin and equity owners with the help of investors in 19921. Howard Schultz initially saw the power of consumer behavior early on when he realized Starbuck s began to be a social gathering mecca for people instead of just an espresso stand. When Schultz first noticed the ‘seismic change in consumer behavior,’ he adopted a free-Wi-Fi service and mobile payment service and noticed that Starbucks began to attract people as if it was a third home for coffee enthusiasts.Although he jokes about not getting rent from consumers, it allowed Starbucks to create an online-experience in their ‘3rd home’ which was unique to the coffee scene in the United States. With scheduled deliveries and privatized ad networking, Starbucks was maximizing its profits and allowing an experience for coffee enthusiasts that did not make them feel locked-into paying. This shift in consumer behavior was in response to the cultural need for a place between home and work. As social beings, humans thrive for an excuse to hang out and socialize or participate in a community environment.This amazing experience that Starbucks supplied needed to be fine-tuned like any business plan. Like any business, Starbucks had challenges, such as their management of spending. In an interview entitled Business Brilliant, Schultz said that too much was focused on the customer instead of the infrastructure. To improve this, Schultz developed a unique experience in the store with the paired pastry-drinks and released free Wi-Fi for customers. In addition to free-Wi-Fi, mobile payments allowed consumers to avoid lines and continue their private work in the confines of the lounge.Soon Starbucks was thriving and announced that â€Å"the opening of 150 new stores in five years significantly exceeded the 1987 business plan’s objective of 125†[3]. Like every company, Starbucks faced unique issues in their business which slowed down growth initially which in effect slowed down growth in the long run. Schultz attributed the biggest hold-back in the long run to not investing in the supply chain, technology or manufacturing. Although Sta rbucks was marketing their franchise extremely well, they did not invest ahead of the growth curve and the infrastructures became under-par.In the Business Brilliant, Schultz candidly admitted that Starbucks â€Å"solely accelerated growth of the company. † Moreover, Schultz said the issue was that Starbucks â€Å"needed competency well beyond the size of the company and needed the kind of capability they didn’t have. † Since their infrastructure’s efficiency in the short run was hindered by technological limitations coupled with access to capital, the entire store chains needed to be shut down. Schultz defined the event as a need to redesign their image and retrain their employees.Starbucks was losing grip on the customers and their loyalty because the experience of Starbucks was losing its unique features. All of these internal and external issues that Starbucks was facing were all connected with values and company image according to Schultz. Schultz wa s so specific with the Starbucks experience that when he smelt burning cheese in a store he decided to ask the workers and they told him â€Å"So what, profits are up! † Soon after this, Schultz decided to close down and retrain all stores and employees. He sent out a press release admitting that Starbucks was misrepresenting itself.Although no one had accused or criticized Starbuck’s prior to his declaration, it was a bold move which negatively impacted the financial strength of the Company. However, the action proved loyal to the consumer and enhanced brand loyalty for Starbuck-addicts. This root issue of misrepresentation in the Starbuck’s experience and the company vision was so significant to Schultz that he needed rework his company from the ground up. This road block of ‘conserving the core businesses’ and ‘pushing for relevant innovation’ made Schultz tweak and adjust the Starbucks experience constantly but effectively.While Sch ultz attributes the root issue for Starbucks to be company image and adapting core values, could it be possible that the vision and image were not correctly portrayed because of unwise funding? Schultz does admit the funding issues contributed to the core issue of misrepresentation of company image and values, but he does not see the two issues in separate environments. Schultz assigns the core issue to misrepresentation and the surface symptoms to be funding. However, more funding or a different funding plan with more focus in infrastructure would have changed the outcome.The core issue was funding and the symptoms of the core issues were misrepresentation because of resource allocation. While their short term fixed costs of infrastructure and labor were solved, their reserved and recurring allocation towards the upgrades of their infrastructure lacked significantly. If properly funded before and seen ahead of the curve, their growth could have been anticipated. This is evident thr ough the need to shut down and retrain employees. It’s clear that the total fixed and variable costs exceeded their revenue initially.Like all companies, there was a start-up curve but when the curve was dealt with, resource allocation was not the focus. The best plan of action ideally would start with addressing resource allocation. Starbucks was able to stay in business and have great growth so it’s clear the management was able to properly allocate their average variable costs and fixed costs for the most part. Nevertheless, it would have been best if the costs were optimized and revenue was set aside for changes in infrastructure. Funding should have been directed at things which would have produced stability in the long run.This would have lowered their total costs and properly funded their infrastructures for the long run and short run. Schultz should have looked at the management immediately after buying out the company and properly hired people with skills that would be able to guide Starbucks through significant growth. Investment in infrastructure to avoid long-term costs would have saved Starbucks from funding issues at later times. In addition to optimizing their infrastructure for the long run, Starbucks needed to invest more in manufacturing and supply chain for the success in the long run.For example, Starbucks should have initially allocated more funding towards small upgrades in their infrastructure such as ovens versus microwaves to avoid unpleasant scents in the customer’s experience. This also connects to Schultz’s emphasis on hiring employees and affiliates based on similar values. If the decision to hire those employees would have initially been more focused on similar values in addition to management skills, the variable costs to upgrade the infrastructure in the long run would have been lower because the management would have been more motivated to deal with the issue before the CEO had to see the symptoms.Fi nally, the management of Starbucks needed to choose their employee’s more wisely from the start. If Schultz would have chosen his employee’s based on the similarity of their values and the company vision, little issues such as smell in the customer’s experience would have been dealt with more efficiently. This connects to optimizing their infrastructure but focuses on the employees instead of the technology. It’s important to treat both with separate solutions because Schultz reminded us that the employees can only work with the assets they are provided with.This small change in the focus of the start-up of the company could benefit the image of Starbucks very efficiently and in a cost-productive way. Schultz jokes about not getting rent from Starbucks admirers yet he also notes that the potential to plug into the social media of the internet and create the environment was more beneficial than the issue of customers hanging out inside the store. The evolv ing Starbucks experience caused consumers to have incredible brand loyalty over alternatives such as Pete’s Coffee and Tea and Tullies.Yet the quick and agile response of technology was exactly what Starbucks needed to put it ahead of the ‘growth curve’ in social media while its competitors struggled behind. Schultz’s solutions were effective in the short run but he still realized his long run potential was limited by resource allocation. The problem with Starbucks and consumers was not the shift in demand for coffee consumers but it was resource allocation and initial planning. Howard Schultz’s plan of action was headed in the right direction apart from the minor mix-up between the surface symptoms and the core issue.In addition to new work practices, Schultz integrated new management and had to let go many of the people he knew were limited to the knowledge of the short-term. This new resource allocation towards what Schultz called ‘the back side’ of the company, allowed the company to finally resolve its funding and allocation issues. The new plan of action consisted of hiring new employees and investing in infrastructure to anticipate growth and new forms of technology; the poor management habits of the past from would not hinder Starbucks in the future.Similar to my suggested plan of action, Schultz’s initiative consisted of new employee’s, new technology and investing in the short term. If Schultz’s would have put more funding towards infrastructure to bring stability in the long run, he would have been able to manage the shift in consumer behavior and maintain profit without the need to close down the stores for retraining. The issue for Starbucks is not losing customers but how to accurately represent the company’s values. Moreover, if the employees were chosen correctly and the infrastructure was properly optimized, Schultz plan would have worked perfectly.All in all, every comp any in any industry is going to face challenges and have limited resources to meet them in an efficient manner. Howard Schultz used the resources he had to best manage Starbucks and handled the big issues he had efficiently and creatively. The future of Starbucks all depends on its management and commitment to adhering to the company vision and values. After experiencing the 2000-2008 period, one can see that the values will inevitably shift with changes in management. 4] The future of Starbucks is highly dependent on how long Howard Schultz continues to be an active part of the company and in shaping its vision. If affiliates and employees are chosen intelligently and have values matched properly with the company’s mission, Starbucks’s vision should be passed down effectively through each generation of new management. Nevertheless, the rise and fall of competitors in a market is inevitable and time will tell if Starbucks will eventually be surpassed by a competitor. S tarbucks will be a primary educational focus for many business programs.It is one of the best managed franchises in history and will remain one of the most successful for a long period of time. Like any business, Schultz received criticism for extreme responses yet these responses excelled the growth of the company. Much like my suggestions, Schultz acted quickly and made extreme changes which were crucial to repairing the infrastructure. Unlike most companies, Starbucks’s major focus is promoting the company image and values instead of putting profits first. Works Cited I. Schiff, Lewis. â€Å"Starbucks CEO Howard Schultz Coming to NYC. Inc. com. INC, 18 Mar. 2011. Web. 25 Mar. 2013. II. â€Å"Starbucks Corporation History. † History of Starbucks Corporation – FundingUniverse. Funding Universe, n. d. Web. 25 Mar. 2013. III. McGraw Hill. â€Å"Starbucks Corporation. † Starbucks Case Study. MHHE. com, n. d. Web. 25 Mar. 2013. ———†”———– [1] Funding Universe, Starbucks Corporate History [2] McGraw Hill, Starbucks Case Study, Starbucks Corporate History [3] McGraw Hill, Starbucks Case Study, Starbucks Corporate History [4] Funding Universe, Starbucks Corporation History Starbucks Case Study Starbucks in 2004: Driving for Global Dominance Strategic Management STRA 703 Assignment Prepared by: Sherif Hendi (M1100758) Presented to: Dr. Gamal Shehata Questions Q. NO. 1 What are the key elements of Starbucks strategy as of 2004? (What is the store concept, the customer offerings and differentiators? The expansion strategy? The financial strategy? The personnel management and social responsibilities? Conduct a five forces analysis? ) Q. No. 02 What was the original strategic vision and objectives and how did they evolve? What is your opinion of Starbucks’ mission statement? What grade would you give Howard Schultz for his job as the CEO Starbucks and why? Q. No. 3 What is your assessment of Starbucks financial performance during years 1998-2003? (Growth rates, profitability, control of major cost categories, financing, ROE, and P/E ratio? ) Q. No. 04 What were the key issues faced by Starbucks in 2004? Q. No. 05 What recommendations would you make to Howard Schultz to sustain the company growth and support strong financial performance in the years ahead? Q. NO. 1 What are the key elements of Starbucks strategy as of 2004? ANS: Key Elements of Starbucks’ Strategy Starbucks adopted a lot of innovative strategies throughout its journey from 1971 to 2004. These strategies in brief are as follows:- * The restaurant/store concept * The offering of Innovative product line * Differentiation from competition * National and international expansion * Distribution channels (Pepsi partnership/online store/Dreyer partnership) * Efficient Financial management (Centralized Information Systems) * Capitalizing on enhancing the people element * Engaging in social responsibility programs (CARE). Competitive Advantages or Differentiators Their differentiating elements are as follows:- They were the pioneers to introduce espresso bar idea in USA * Mail order sales * Word of mouth marketing * Employee motivation strategies to attain improved employee commitment * Convenient distribution channels * Introducing chemical free cultivation process. Q. No. 02 What grade would you give Howard Schultz for the job he has done as CEO of Starbucks? Be prepared to support you r answer based on how well (or not so well) he has performed the five tasks of strategic management discussed in Chapter 2. ANS: Howard Shultz gets a grade of 95% in his Strategic Management approach. In my opinion Howard Shultz just didn’t do perfect in the area of marketing as he did not spend adequate budgets on advertising and product innovation. Last but not the least is that he did not attempt to study the environment properly while entering into new geographical areas e. g. he opened a store down street in Chicago which was not a good idea due to cold weather conditions. Other than that, he made a great task of performing all the five tasks of Strategic Management Q. No. 3 What was Howard Schultz’s original strategic vision for Starbucks? Is his present strategic vision for Starbucks different from the one he had in the 1980s? How many times has his strategic vision changed? Is his present strategic vision likely to undergo further evolution? ANS: Howard Shultz original Strategic Vision â€Å"To establish Starbucks as the most recognized and respected brand in the world. † Strategic Objectives * They wanted to have 15,000 stores by the year-end 2005. * They aimed to provide a great work environment and treat each other with respect and dignity. * They believed in taking on diversity as an essential component in the way they do business. * To apply the highest standards of excellence to the purchasing, roasting and fresh delivery of coffee. To develop loyal and satisfied customers all of the time. * To contribute positively to their communities and environment, and recognize that profitability is essential to future success of business. How did they evolve? At the earlier stages they promised themselves that they will not leave even a single stone unturned to make Starbucks the most recognized and re spected brand in the world. Therefore, they thought that this could only be possible if they will develop these strategic objectives because these are basis to earn the respect and fame for any business. Q. No. 3 What is your assessment of Starbucks financial performance during years 1998-2003? (Growth rates, profitability, control of major cost categories, financing, ROE, and P/E ratio? ) Growth Rate| Years| 1998| 1999| 2000| 2001| 2002| 2003| Growth rate| 0| 0. 2889| 0. 29095| 0. 2164| 0. 2415| 0. 2391| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Profitability| Years| 1998| 1999| 2000| 2001| 2002| 2003| Operating profit margin | 8. 34| 9. 29| 9. 4| 10. 57| 9. 6183| 10. 42| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ROE| Years| 1998| 1999| 2000| 2001| 2002| 2003| Return on equity| 8. 6| 1. 58| 8. 23| 13. 1| 18. 35| 12| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Price Per Earning Share| Years| 1998| 1999| 2000| 2001| 2002| 2003| Price Per Earning Share| 0. 19| 0. 27| 0. 24| 0. 46| 0. 54| 0. 67| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Control of Major Cost Categories In this portion we have analyzed that how Starbucks controlled its fixed cost. If we talk about the locations, it was very expensive to purchase land and then develop it as a store, so to overcome this problem Starbucks started leasing the land for long term periods. In our opinion, it was a quit impressive move to cut down its fixed cost. Secondly they observed that to get the license was too costly for them, so they made contracts with the partners who had license with them. Financing For the financing, Starbucks instead of taking loans preferred raising the equity. It was a better idea to generate capital because they did not have to pay any short term and long term interests against the borrowings. Q. No. 04 What were the key issues faced by Starbucks in 2004? Every company faces major challenges, even companies that are as successful as Starbucks. Although they have an outstanding reputation, have won many awards like top sustainable retail store award and most ethical company award etc, and even give back to their community, they are still facing challenges like any other company. Following are the most obvious challenges that Starbucks is dealing with:- * Schultz was overflowing with the ideas for the company, early on he noticed that first-time customers sometimes felt uneasy in the stores because of their lack of knowledge about fine coffees and because store employees sometimes came across as a little arrogant or superior to coffee beginner. Howard Schultz when came back from Italy shared his ideas for modifying the format of Starbucks’ store with Baldwin and Gordon Bowker. But instead of winning approval for trying out some of his ideas, Schultz encountered strong resistance but after a year Schultz succeeded in winning the approval from Baldwin and Bowker. * After sometime Baldwin and Bowker again went against th e ideas of Schultz so he became so frustrated and left Starbucks in late 1985 to open his own separate Espresso Bars in high-traffic down town locations. Schultz acquired Starbucks in 1987 and after the 20 months of acquiring, some employees felt unappreciated that there was a feeling of prior management had abandoned them. So, Schultz decided to make building a new relationship of mutual respect between employees and management. * Starbucks lost its money when it expanded market to Chicago because in Chicago that was the first downtown store opened on to the street rather than into the lobby of the building where it was located; in the winter months, customers were hesitant to go out in the wind and cold to acquire a cup of coffee. It was expensive to supply fresh coffee to the Chicago stores from Seattle warehouse. * The challenge to Starbucks, in Schultz view, was how to attract, motivate, and reward store employees in a manner that would make Starbucks a company that people would want to work for and that would generate enthusiastic commitment and higher level of customer service. * A values and principles â€Å"crisis† arose at Starbucks in 1989 when customers starting requesting nonfat milk in making Cappuccinos and lattes (an espresso coffee with frothy steamed milk) So, Starbucks started selling both fat milk and nonfat milk Cappuccinos and lattes. They were facing the issue of Wi-Fi (wireless internet service) in 2002, the number of accesses was in the millions by T-Mobile; internal research showed that the average connection last approximately 45 minutes So, in October 2003, Starbucks announced that they will expand Wi-Fi capability to additional locations and would have 2700 stores equipped wit h wireless Internet access by year end. * They were also facing challenges from their competitors. In 2003 there were an estimated 14000 specialty coffee outlets in the United States but they were not competent enough to exert pressure at Starbucks. Q. No. 05 What recommendations would you make to Howard Schultz to sustain the company growth and support strong financial performance in the years ahead? Recommendations After analyzing the whole case study, we became able to give few suggestions to Howard Schultz which can be handy to sustain the growth and support strong financial performance in the forthcoming years:- * He should spend more budgets on advertisement of products. He should bring innovations in his products because we saw in this case study that he was inspired by espresso bars so he imitated the whole theme of Italian espresso bars and the idea of dark roasted bean was an older one as well. * Before entering to any new geographical region he should study the market environment of that particular region as we saw that at Chicago there was an issue of cold weather and his store was at down-town-street. Furthermore, the labor rates and rents of building were higher as well. * At the stores Starbucks’ technique to teach customers about how to make coffee was not a good idea ecause it does not support their business model. Therefore, it should be avoided in future. Above elaborated things were having details about the strategies of Starbucks which drove it for the Global dominance till 2004. Starbucks is in fact the recognized and respected brand in the world and if it can overcome the shortcomings which we identified then nobody can create bother for it to be successful and there will be no point left as a mistake on its part. Reference www. starbucks. com Case Study â€Å"Starbucks in 2004: Driving for Global Dominance† written by Arthur A. Thompson, Amit J. Shah and Thomas F. Hawk. Starbucks Case Study Conner A Intro to Business 3/26/2013 Case Study Consumer Behavior in the Coffee Industry Did you know one franchise alone dominated an entire payment-processing market in just one year? You might have heard of this giant company by the name Starbucks. Howard Schultz, CEO of Starbucks, had a significant role in the company’s growth. Starbucks has steadily dominated the coffee market and has even extended to being a 3rd home for many of its consumers. Based in Seattle, Starbucks had significant competition when it opened its first store in the Pike Place market in Seattle, yet still managed to become superior.Starbucks used new advertising tactics and presented a unique experience for its customers, all of which was a game changer in the business world. Starbucks was created when three friends opened a small store to sell coffee beans and roast in 1971[1]. Jerry Baldwin, Gordon Bowler and Zev Siegl opened their store in the heart of the unique open air market in downtown Seattle . Located just off the harbor, Pike place market was the optimal location and attracted many residents and tourists.After ten years of incredible growth, Jerry Baldwin hired Howard Schultz as head of management. When Schultz first started, he slowly learned the coffee industry and helped made subtle but significant changes. For example, Schultz noticed that â€Å"first-time customers sometimes felt uneasy in the stores†[2] so he developed â€Å"customer-friendly sales skills and produced brochures that made it easy for customers to learn about fine coffees†2 Schultz had the vision of making Starbucks a coffee lounge versus a bar after being inspired by eastern traditions.Even though he did not agree with the new direction, Baldwin allowed Schultz to open one espresso bar and in 2 years, Schultz was able to buy out Baldwin and equity owners with the help of investors in 19921. Howard Schultz initially saw the power of consumer behavior early on when he realized Starbuck s began to be a social gathering mecca for people instead of just an espresso stand. When Schultz first noticed the ‘seismic change in consumer behavior,’ he adopted a free-Wi-Fi service and mobile payment service and noticed that Starbucks began to attract people as if it was a third home for coffee enthusiasts.Although he jokes about not getting rent from consumers, it allowed Starbucks to create an online-experience in their ‘3rd home’ which was unique to the coffee scene in the United States. With scheduled deliveries and privatized ad networking, Starbucks was maximizing its profits and allowing an experience for coffee enthusiasts that did not make them feel locked-into paying. This shift in consumer behavior was in response to the cultural need for a place between home and work. As social beings, humans thrive for an excuse to hang out and socialize or participate in a community environment.This amazing experience that Starbucks supplied needed to be fine-tuned like any business plan. Like any business, Starbucks had challenges, such as their management of spending. In an interview entitled Business Brilliant, Schultz said that too much was focused on the customer instead of the infrastructure. To improve this, Schultz developed a unique experience in the store with the paired pastry-drinks and released free Wi-Fi for customers. In addition to free-Wi-Fi, mobile payments allowed consumers to avoid lines and continue their private work in the confines of the lounge.Soon Starbucks was thriving and announced that â€Å"the opening of 150 new stores in five years significantly exceeded the 1987 business plan’s objective of 125†[3]. Like every company, Starbucks faced unique issues in their business which slowed down growth initially which in effect slowed down growth in the long run. Schultz attributed the biggest hold-back in the long run to not investing in the supply chain, technology or manufacturing. Although Sta rbucks was marketing their franchise extremely well, they did not invest ahead of the growth curve and the infrastructures became under-par.In the Business Brilliant, Schultz candidly admitted that Starbucks â€Å"solely accelerated growth of the company. † Moreover, Schultz said the issue was that Starbucks â€Å"needed competency well beyond the size of the company and needed the kind of capability they didn’t have. † Since their infrastructure’s efficiency in the short run was hindered by technological limitations coupled with access to capital, the entire store chains needed to be shut down. Schultz defined the event as a need to redesign their image and retrain their employees.Starbucks was losing grip on the customers and their loyalty because the experience of Starbucks was losing its unique features. All of these internal and external issues that Starbucks was facing were all connected with values and company image according to Schultz. Schultz wa s so specific with the Starbucks experience that when he smelt burning cheese in a store he decided to ask the workers and they told him â€Å"So what, profits are up! † Soon after this, Schultz decided to close down and retrain all stores and employees. He sent out a press release admitting that Starbucks was misrepresenting itself.Although no one had accused or criticized Starbuck’s prior to his declaration, it was a bold move which negatively impacted the financial strength of the Company. However, the action proved loyal to the consumer and enhanced brand loyalty for Starbuck-addicts. This root issue of misrepresentation in the Starbuck’s experience and the company vision was so significant to Schultz that he needed rework his company from the ground up. This road block of ‘conserving the core businesses’ and ‘pushing for relevant innovation’ made Schultz tweak and adjust the Starbucks experience constantly but effectively.While Sch ultz attributes the root issue for Starbucks to be company image and adapting core values, could it be possible that the vision and image were not correctly portrayed because of unwise funding? Schultz does admit the funding issues contributed to the core issue of misrepresentation of company image and values, but he does not see the two issues in separate environments. Schultz assigns the core issue to misrepresentation and the surface symptoms to be funding. However, more funding or a different funding plan with more focus in infrastructure would have changed the outcome.The core issue was funding and the symptoms of the core issues were misrepresentation because of resource allocation. While their short term fixed costs of infrastructure and labor were solved, their reserved and recurring allocation towards the upgrades of their infrastructure lacked significantly. If properly funded before and seen ahead of the curve, their growth could have been anticipated. This is evident thr ough the need to shut down and retrain employees. It’s clear that the total fixed and variable costs exceeded their revenue initially.Like all companies, there was a start-up curve but when the curve was dealt with, resource allocation was not the focus. The best plan of action ideally would start with addressing resource allocation. Starbucks was able to stay in business and have great growth so it’s clear the management was able to properly allocate their average variable costs and fixed costs for the most part. Nevertheless, it would have been best if the costs were optimized and revenue was set aside for changes in infrastructure. Funding should have been directed at things which would have produced stability in the long run.This would have lowered their total costs and properly funded their infrastructures for the long run and short run. Schultz should have looked at the management immediately after buying out the company and properly hired people with skills that would be able to guide Starbucks through significant growth. Investment in infrastructure to avoid long-term costs would have saved Starbucks from funding issues at later times. In addition to optimizing their infrastructure for the long run, Starbucks needed to invest more in manufacturing and supply chain for the success in the long run.For example, Starbucks should have initially allocated more funding towards small upgrades in their infrastructure such as ovens versus microwaves to avoid unpleasant scents in the customer’s experience. This also connects to Schultz’s emphasis on hiring employees and affiliates based on similar values. If the decision to hire those employees would have initially been more focused on similar values in addition to management skills, the variable costs to upgrade the infrastructure in the long run would have been lower because the management would have been more motivated to deal with the issue before the CEO had to see the symptoms.Fi nally, the management of Starbucks needed to choose their employee’s more wisely from the start. If Schultz would have chosen his employee’s based on the similarity of their values and the company vision, little issues such as smell in the customer’s experience would have been dealt with more efficiently. This connects to optimizing their infrastructure but focuses on the employees instead of the technology. It’s important to treat both with separate solutions because Schultz reminded us that the employees can only work with the assets they are provided with.This small change in the focus of the start-up of the company could benefit the image of Starbucks very efficiently and in a cost-productive way. Schultz jokes about not getting rent from Starbucks admirers yet he also notes that the potential to plug into the social media of the internet and create the environment was more beneficial than the issue of customers hanging out inside the store. The evolv ing Starbucks experience caused consumers to have incredible brand loyalty over alternatives such as Pete’s Coffee and Tea and Tullies.Yet the quick and agile response of technology was exactly what Starbucks needed to put it ahead of the ‘growth curve’ in social media while its competitors struggled behind. Schultz’s solutions were effective in the short run but he still realized his long run potential was limited by resource allocation. The problem with Starbucks and consumers was not the shift in demand for coffee consumers but it was resource allocation and initial planning. Howard Schultz’s plan of action was headed in the right direction apart from the minor mix-up between the surface symptoms and the core issue.In addition to new work practices, Schultz integrated new management and had to let go many of the people he knew were limited to the knowledge of the short-term. This new resource allocation towards what Schultz called ‘the back side’ of the company, allowed the company to finally resolve its funding and allocation issues. The new plan of action consisted of hiring new employees and investing in infrastructure to anticipate growth and new forms of technology; the poor management habits of the past from would not hinder Starbucks in the future.Similar to my suggested plan of action, Schultz’s initiative consisted of new employee’s, new technology and investing in the short term. If Schultz’s would have put more funding towards infrastructure to bring stability in the long run, he would have been able to manage the shift in consumer behavior and maintain profit without the need to close down the stores for retraining. The issue for Starbucks is not losing customers but how to accurately represent the company’s values. Moreover, if the employees were chosen correctly and the infrastructure was properly optimized, Schultz plan would have worked perfectly.All in all, every comp any in any industry is going to face challenges and have limited resources to meet them in an efficient manner. Howard Schultz used the resources he had to best manage Starbucks and handled the big issues he had efficiently and creatively. The future of Starbucks all depends on its management and commitment to adhering to the company vision and values. After experiencing the 2000-2008 period, one can see that the values will inevitably shift with changes in management. 4] The future of Starbucks is highly dependent on how long Howard Schultz continues to be an active part of the company and in shaping its vision. If affiliates and employees are chosen intelligently and have values matched properly with the company’s mission, Starbucks’s vision should be passed down effectively through each generation of new management. Nevertheless, the rise and fall of competitors in a market is inevitable and time will tell if Starbucks will eventually be surpassed by a competitor. S tarbucks will be a primary educational focus for many business programs.It is one of the best managed franchises in history and will remain one of the most successful for a long period of time. Like any business, Schultz received criticism for extreme responses yet these responses excelled the growth of the company. Much like my suggestions, Schultz acted quickly and made extreme changes which were crucial to repairing the infrastructure. Unlike most companies, Starbucks’s major focus is promoting the company image and values instead of putting profits first. Works Cited I. Schiff, Lewis. â€Å"Starbucks CEO Howard Schultz Coming to NYC. Inc. com. INC, 18 Mar. 2011. Web. 25 Mar. 2013. II. â€Å"Starbucks Corporation History. † History of Starbucks Corporation – FundingUniverse. Funding Universe, n. d. Web. 25 Mar. 2013. III. McGraw Hill. â€Å"Starbucks Corporation. † Starbucks Case Study. MHHE. com, n. d. Web. 25 Mar. 2013. ———†”———– [1] Funding Universe, Starbucks Corporate History [2] McGraw Hill, Starbucks Case Study, Starbucks Corporate History [3] McGraw Hill, Starbucks Case Study, Starbucks Corporate History [4] Funding Universe, Starbucks Corporation History