Categories
Company

The Company Man Analysis Essay

ANALYSIS 7 Essay: The Company Man The typical business man involved in corporate America works anywhere from six to ten hours per day. Phil, “the Company Man” worked six days a week sometimes until eight or nine at night, making himself a true workaholic. Using his life story before he died Goodman is able to convey her liking toward Phil but her dislike of what the business world has turned him into. Not only does Goodman use a number of rhetorical devices but she also uses Phil’s past as well as the people who were once in Phil’s life to get her message across to her reader.
Ellen Goodman sarcastically creates the obituary of a man who dedicated his life to his job and the company he worked for. Goodman uses anaphora, satire, diction, sentence structure, and selection of detail to complete her obituary of this “Company Man”. Emphasizing the fact that Phil worked himself to death, Goodman chose pure sarcasm to make this particular emphasis. She shows through this repeated phrases, that he must have chosen work over family quite often, working to provide for his family which resulted in the simple fact that “he worked himself to death, finally and precisely, at 3:00a. m Sunday morning.
Goodman’s use of repetition leads to show her satirical writing. “On Saturdays, Phil wore a sports jacket to the office instead of a suit, because it was the weekend” shows Goodman’s use of satire in one of the many examples throughout the obituary. Toward the end of the essay, Goodman describes how the company president starts the funeral with a hint of sarcasm, “discreetly of course, with care and taste” using a tongue and cheek method to provide a subtle shift in tone. The president then begins to question who will replace Phil ending with a paradoxical sentence “‘Who’s been working the hardest? ” getting down to the business of replacing Phil, providing another example of a stereotypical business approach. The vivid diction describes the sarcasm that Goodman has towards Phil. Goodman composes her paragraphs with careful rhythm and beat; she repeats “finally,” “precisely” and “perfect” three times. Phil’s constancy and lack of variation are embodied in rigid words such as “always,” “of course,” and “Type A. ” Extreme diction such as “overweight,” “nervous,” and “workaholic” convey Phil as a worrywart with no fun at all in his life.

These words mock Phil as a man sincerely obsessed with work that had lost track of his priorities. Goodman deepens her point when she introduces Phil’s family, using diction in relation to business to further emphasize the importance of work to Phil. To Phil’s wife Helen, “A company friend said ‘I know how much you will miss him. ’ And she answered, ‘I already have. ’” His eldest son tells the reader of how he went around the neighborhood gathering research on his father. His daughter recalls how whenever she was alone with him they had nothing to say to each other.
When Phil’s youngest son reminisces on how he tried to mean enough to his father to keep him at home. Goodman informs the reader that the youngest child was Phil’s favorite. Goodman’s sentence structure of long, short, long, helps the shorter sentence stick out more to the reader. But she ends the paragraph with a sad ironic sentence, “My father and I only board here. ” implying that he never really was successful. The descriptions of Phil in “The Company Man” are sardonically accusatory of the present way people live in society.
Goodman makes light of how Phil is a heart attack waiting to happen, his seventy-hour workweeks and egg sandwiches. “Of course,” used thee times, translates as the acceptance that we have towards intolerable living conditions in order to fulfill the American dream. Like many Americans, Phil is constantly obsessed about his work and whether or not he will ascend to the top position. Through these details she describes the monotonous, repetitive way that society exists today. Throughout the column, images negatively portray the lifestyle that Phil lives.
Superficially, all seems well because his family lives a comfortable existence. Emotionally, however, his family has missed his emotional support for years. His wife, Helen, gave up “trying to compete with his work years ago. ” All of his children grew up in a so-called normal family with a father and mother. At his funeral, though, they do not have enough memories about him to say a proper eulogy. Phil himself was “overweight” and unhealthy, obsessed with work and negligent with his personal life. Goodman condemns the lifestyle that Phil leads by using negative and poignant imagery.
Ellen Goodman develops an attitude of pity for Phil, and resentment for the company through rhetorical techniques by portraying that to his wife and to his children, Phil had become so consumed with his position as one of the Important People that he had all but completely removed himself from their emotional reach for the sake of his company life. Goodman’s vision of the corporate world and its influence and affect on our lives is portrayed through her diction and choice of detail in her anecdote of the reflection of the life of the A-Type, workaholic, Phil.

Categories
Company

Bunzl plc: Company profile and SWOT analysis

Abstract
Bunzl plc (LON: BNZL) is a specialist distribution and outsourcing company, ranked 93 in the FTSE 100 ranking (as at 6th September 2011), with market capitalisation of ?2.5 billion. The company reported a strong financial results in its 2011 half yearly financial report, with growth in revenue, operating profit and profit before tax, when its nearest competitor Amcor reported a decline.
This report aims to give a brief overview of the company, its internal strengths and weaknesses and its opportunities and threats within the industries and geographies the company is operating. The first section is an introduction to the company, its financial performance and business activities across geographies. The impact its recent acquisitions have on the company’s competitive advantage in the industry is also covered as part of the second section of the report, SWOT (strength, weakness, opportunity and threat) analysis of the company.

Introduction
Bunzl plc (LON: BNZL), a specialist distribution and outsourcing company, is positioned at #93 in the FTSE 100 ranking, with market capitalization of ?2.5 billion, as at 6th of September 2011. The company mainly operates in the Americas, Europe and Asia Pacific. It engages in the distribution of non-food consumable products to various industries. Headquartered in London, it employs more than 13,000 people (Datamonitor, 2010).
As indicated in the company’s half yearly financial report (2011), the first half of 2011 netted the company a reported ?2.4 billion in revenue, a 4% increase over the first half of 2010. The operating profit of the company was ?125.5 million, a 9% increase over H1 2010. The profit before tax was ?112.1 million, ?12 million higher than H1 2010. Cash flow remained strong, with cash generated from operations partly used to finance cash outflow for acquisition. This has minimize impact to the company’s net debt and EBITDA, with the latter reduced to 2.0 ratio compared to 2.1 at December 2010.
The company faced difficult sales in UK and Ireland; however this is offset by the strong organic growth in North America, Continental Europe and rest of the world. Bunzl also recently embarked on a string of acquisitions, to strengthen and expand its geographical and market presence. The company has acquired seven so far in 2011, and has committed ?123 million to date.
Bunzl divested its vending business in the UK as it saw that the business was no longer a strategic fit within the portfolio of the Group’s businesses. Despite the company’s development effort, competition is strong from the high street coffee shops, which has led to reductions in vend volumes.
SWOT analysis
Bunzl caters to industries such as grocery store supplies, food service packaging, catering equipment and cleaning and hygiene products. Datamonitor (2010) analysed Bunzl’s main strength to be its well-balanced geographic presence and business spread over different industries. Through its presence across the world, Bunzl is able to take advantage of opportunities in any one market, and maintain presence in other markets to fend off threats. The diverse industries provide cross selling opportunities to Bunzl, which works in favour of the company as it boost the company’s growth in difficult global economic situation, as shown in the past few years. Additional positive contributor to its strength is its diverse range of customers (individual, retailers and institutional) and its well balanced mix of high margin low volume business and low margin high volume business. The company also has a robust financial performance which adds to the strength of its market share. It has been registering strong financial growth in the past few fiscal years, while its competitor Amcor registered a decrease.
Its main weakness would be its lack of scale of operation, which reduces its collective bargaining power. Compared to other players operating in its market, Bunzl is relatively small. Its FY2009 revenue of ?4.6 billion is significantly lower than its competitors such as Supervalu’s ?40.6 billion and C&S Wholesale Grocers’ $19.3 billion. Another weakness is their underfunded pension obligations, which require the company to make cash payments at regular interval thereby reducing its cash available for other business purpose.
Bunzl’s acquisitions will expand its opportunities, through extending its product offering and increasing its customer base. It will also strengthen its growth and sourcing capabilities. Opportunity is also gained from changing customer’s consumption habits and lifestyle, with the increase in demand for convenient, on-the-go packaging. The demand for food service disposables in the US is expected to increase by 3.5% per annum through 2013, and the same trend goes for Europe as well. With this growth projection, Bunzl can leverage its wide product portfolio and distribution network to serve the growing demand in various geographies and benefit from increased revenue and higher profitability.
Another growing market is the private label consumer goods industry, which has been growing at a fast pace in the past few years. An online global survey conducted in 2010 revealed that due to the economic downturn 60% of consumers across 55 countries from Asia Pacific, Europe, North America, Latin America and Middle East/Africa has been increasingly purchasing private brands. The economic pressure has been driving consumers to value-oriented decisions. Retailers have also been pushing improvements in their product quality and selection of offerings; another contributor to the growing consumption.
Labour cost has been increasing in some key markets of the company, which contributes to its main threat as it will impact the company’s cost structure and its profit margins. Another threat is the weak economic situation, which could reduce the company’s margins. North America is Bunzl’s largest market, whose economic activities have been slowing down due to the economic crisis. In addition, the level of unemployment in the US is rising, which will contribute to lower consumption expenditure as the disposable income of customers decrease.
Conclusion
Bunzl’s strong first half of 2011 result continues the company’s positive performance in the midst of economic downturn. Despite difficult economic situations in its key markets, North America and Europe, its strategic acquisition drive appears to bear fruit in expanding Bunzl’s presence and market share. It has also divested its vending business, which the company viewed as no longer a fit with the overall company strategy.
With its robust financial performance, diverse geographic presence, product offerings and customer base, Bunzl is poised to leverage on its strengths to capitalise on new opportunities, growing demand in convenient and on-the-go products and private brands. The company is well placed to meet the demand in various geographies and increase its revenues and profit margins.
Bunzl’s acquisition drive has increased its collective bargaining power and scale of operations. However the company has to keep generating cash in order to fund its underfunded pension obligations. The economic downturn poses a threat to demand growth in Bunzl’s key markets and the increasing labour cost will impact the company’s cost structure and profit margins.
Bibliography
Bunzl plc. (2011). Half Yearly Financial Report for Six Months Ended 30 June 2011. [online]. August 2011. Available from: http://www.bunzl.com/bunzl/media/press_releases/2011/2011-08-30b/2011-08-30bv2.pdf. [Accessed: 9th September 2011]
Datamonitor (2010). Bunzl plc: Company Profile [online]. London: Datamonitor. Available from http://www.datamonitor.com/ [Accessed: 9th September 2011]
Stock Challenge (2011). FTSE All-Share Index Ranking (unofficial guide) [online]. Available from: http://www.stockchallenge.co.uk/ftse.php [Accessed: 14th September 2011]

Categories
Company

Company History, Product And Services Ebay

Company History, Product and Services Ebay was Founded in September 1995 by Pierre Midair in his San Jose living room (Bosons 2001), he created a flea market in cyberspace when launched online auction service Auction Web. Making a name for itself largely through word of mouth, the company incorporated in 1996, the same year it began to charge a fee to auction items online. The company changed the name to eBay in 1997 and began promoting itself through advertising.
By the middle of that year, eBay was boasting nearly 800,000 auctions each day and Benchmark Capital came on board as a significant uncial backer. In early 1998 Margaret Whitman, a former Hasher executive, replaced Midair as CEO in early 1998, later the same year EBay made a blockbuster debut as a public company. The company moved closer to household name status by launching a national advertising campaign and inking alliance deals with AOL and WebTV. Bay showed its acquisitive streak in 1999 with purchases of Land (online auctions in Germany) and Ballpoint (person-to-person credit card technology). It also made one of its first investments in an outside company with the purchase of 6% of Tradeoff. Mom, an online seller of corporate surplus materials. The company set the jewel in its 1999 acquisition crown when it acquired upscale auction house Butterflies & Butterflies now known as (Battlefields). EBay also expanded down under through a Joint venture with Australia-based score (formerly PL Online).
In 2000 eBay agreed to develop person-to-person and merchant-to-person auction sites for Disney’s GO Network, began distributing information through wireless products, and Joined with banking giant Wells Fargo to offer eBay sellers the option of accepting online checks. Also in 2000 the company expanded into Japan through eBay Japan, with computer firm NECK acquiring 30% of the Japanese subsidiary and eBay owning the rest; it also launched Canadian and Austrian sites. In addition, eBay took an equity stake in online used-car dealer Outraced. Mom and launched a co- branded used-car auction website, and it acquired online trading community Half. Com. EBay strengthened its European position in 2001 through the purchase of French Internet auction firm ‘Bazaar. It also launched sites in Ireland, New Zealand, and Switzerland. EBay made a deal that year to provide its e-commerce capabilities o Microsoft developers and to add business-to-business auctions to its consumer operations. In addition, the company began offering virtual storefronts for retailers to sell fixed-price items and purchased auctioneer of foreclosed property, Homesteader. Amazon. Com was founded in 1994 by Jeff Bozos.

After months of preparation, he launched a website in July 1995 (Douglas Hovercraft’s Fluid Concepts and Creative Analogies was its first sale); it had sales of $20,000 a week by September. Bozos and his team kept working with the site, pioneering features that now seem mundane, such as one-click shopping, customer reviews, and e-mail order verification. Amazon went public in 1997. Moves to cement the Amazon. Com brand included becoming the sole book retailer on All’s website and Netscape commercial channel. In 1998 the company launched its online music and video stores, and it began to sell toys and electronics.
Amazon also expand Its European reach Walt ten purchases AT online booksellers in the UK and Germany, and it acquired the Internet Movie Database. Bozos also expanded the company’s base of online services, buying Jungle (comparison shopping) and Placental (address book, calendar, reminders). By midyear Amazon. Com had attracted so much attention that its market capitalization equaled the combined values of profitable bricks-and-mortar rivals Barnes ; Noble and Borders Group, even though their combined sales were far greater than the upstart’s.
Late that year Amazon formed a promotional link with Hover’s, publisher of this profile. After raising $1. 25 billion in a bond offering early in 1999, Amazon. Com began a spending spree with deals to buy all or part of several dot-combs. However, some have since been sold (Homegrown. Com) and others have gone out of business or bankrupt Pets. Com, living. Mom (furniture). It also bought the catalog businesses of Back to Basics and Tool Crib of the North. Amazon. Com began conducting online auctions in early 1999 and partnered with venerable auction house Soother’s.
Also that year Amazon added distribution facilities, including one each in England and Germany. Amazon is the highest-grossing online retailer in the world with $48. 1 billion in net sales in 2011, or approximately 7% of the $680 billion global e- commerce market. Media represented 7% of sales in 2011, and electronics and general merchandise represented 60% of sales. The remaining 3% was derived from o-branded credit cards, fulfillment operations, and cloud computing services. Outside the U. S. , Amazon operates sites in Canada, the U. K. , Germany, France, Italy, Spain, Japan, and China.
International sales represented 45% of sales in 2011. Question 3 New Events Amazon has stepped up its physical and e-book publishing activities. Signaling an increased interest in content production, Amazon in 2012 acquired the publication rights to more than 3,000 backlash titles from Valor Books, which will be published under the West Coast imprints of Amazon Publishing alongside Montreal Romance and Thomas & Mercer. Amazon become a book publisher with five imprints, including Necromancers and Montreal, in late 2010 when it purchased the publication rights of about 120 fiction and translated titles published by The Toby Press.
Under the terms of the deal, the company’s Necromancers and Micromanaging publishing imprints will release The Toby Press titles in print and Kindle editions for sale on Amazon’s websites and at bookstores in the US, the I-J, and Germany. Previous purchases made to strengthen its Kindle business include Touch, a manufacturer of touch screens (in early 2010), and the digital daybooks publisher Audible for bout $300 million in 2008. To grow its customer base and sales channels, Amazon spent a total of $771 million on acquisitions at home and abroad in 2011.
It purchased UK-based online bookseller The Book Depository in the fall. The Book Depository was founded by Andrew Crawford, a former Amazon. Co. UK employee, and acquiring it strengthened Amazon’s market share in the I-J and bolstered its position in the e-book market. Raising its entertainment stakes in Europe. Also acquired the remaining shares it did not already own in Lovelier International, which streams video and rents DVD’s by mail to customers in the I-J, Germany, Denmark, Norway, ND Sweden (like Nettling in the US). Amazon previously held a 42% stake in Lovelier.
I en deal was announced mall rumblings Trot Hollywood stunt’s Tanat Amazon will roll out an Internet movie subscription operation to rival Nettling, so Amazon could make use of Loveliness technology in that pursuit. Amazon could also use its Hollywood connections to expand Loveliness video offerings and grow its market share in Europe. At home in the US, the company purchased Wood Inc. , an early entrant into the social shopping e-commerce niche in 2010. Dallas-based Wood operates as an independent subsidiary of its parent. It also acquired Squids, the owner of online shopping sites Diapers. Com and Soap. Mom for $500 million in cash and $45 million in debt. Diapers. Com sells baby care products and Soap. Com sells everyday essentials. Both companies operate as independent units and retain their current executive leadership teams. Looking to improve its automation fulfillment centers, as well as cut processing times and personnel costs, Amazon in 2012 acquired Massachusetts-based Kava Systems, a warehouse technology company, for around $775 million. Meanwhile, in 2011 Amazon gave in to increasing pressure from Tate legislatures and its brick-and-mortar rivals to begin collecting sales tax on its online sales.
After pitched battles in several states, including Texas and California, the company agreed to begin collecting taxes in The Golden State in 2012. To boost membership in its Prime shipping and customer loyalty program (launched in 2005), Amazon has struck a deal with Discovery Communications. Discovery has agreed to sell the online-streaming rights to some of its older programming, including episodes of the popular shows “Dirty Jobs” and “Whale Wars,” to Amazon’s online-streaming arrive.
Amazon’s Instant Video streaming service is a distant second to Neckline, with more than 21 million subscribers vs.. Only about 5 million for Amazon. In the past few years eBay spent about $5 billion on technology related acquisitions. In 2010 eBay acquired popular German shopping site Friendliness for about $200 million. It made the deal to become a leading online fashion destination in Europe. The company continued its shopping spree in Germany the following year when it bolstered Papal assets by acquiring the German company Failsafe, adding over 1 5 lion accounts.
The deal gave eBay purchase-on-invoice capabilities that are popular to merchants and consumers in Austria, German, the Netherlands, and Switzerland. EBay bought mobile software application developer Critical Path in 2010. Critical Path had worked with eBay to develop several of its applications for Apple’s phone. The acquisition doubled the size of eBay’s mobile team, which is working to capitalize on the growing numbers of consumers who are shopping on their smart phones. In its largest acquisition since purchasing Keep, in 2011 eBay bought SSL
Commerce, a provider of such services as website development and maintenance, order fulfillment, and digital advertising, for $2. 4 billion.. The purchase not only improved eBay’s Marketplaces business, but it also extended its relationships with larger retailers. SSL clients included Aids, Calvin Klein, Betsey Johnson, and Kenneth Cole. Other recent acquisitions include Hunch, which provides recommendations based on shopping data; Magenta, a provider for software for creating e-commerce systems; Mill, a local shopping engine; and Red Laser, which enables smartness to scan bar codes for product

Categories
Company

Boston Brewing Company

The company having so many strengths, it also has weaknesses. One of the weaknesses is in terms of quality of production. The company is producing in large quantities which at times may be very difficult to monitor the production quality. Small scale competitors who have taken their workers and producing very strong brands, thus endangering the strength of Heineken. There are the government policies and regulations regarding alcohol in various parts of the world.
Heineken operates in many countries and each country has its own regulations regarding alcohol in terms of taxes and other prohibitions which affects the strength of the company. You find that for the last five years the African countries are busy increasing taxes on beer at the expense of the producer. Although the expense is past to the consumer, the company feels the pinch when the consumer turns away from taking the drink. Importation taxes have also been increased in various countries making the company have a higher cost of production in terms of the high price of materials imported or transfer cost been charged a higher tax rate.
The craft beer industry have seen the growth of other brands in various parts of the world meaning that majority of the citizens of any country will wish to take beer which is home made rather than imported beer. This becomes a very crucial weakness of Heineken. Preferences developing in America towards American made beer by companies like Boston Brewing Company. This is a major competitor of Heineken in the United States. The company has a weak customer loyalty because of the brand image and tastes of her beer.

Heineken brand which has been in the market for a long period has started losing loyalty from many people and they are trying to adapt change. This makes their competitors at an advantage as they are able to sell their new brands to the new market and attract Heineken’s market. The company depends greatly on the sales made in Europe and America in support of their strong financial position. The competitors are looking at Africa, South America and Asia as a strong emerging market with a population of almost 3. 5 billion people, in anybody’s mind this is a huge market for beer products.
The company should engage in production of new products that will replace the old products that the people are trying to change. This will enable them acquire the larger market share as they are among the largest companies in the beer industry in the whole world. Heineken Company has a very good image and her involvement in social activities has given the company an advantage over other companies. This is an opportunity the company has to market its products without fear. It has room for expansion since they are the only sponsors of European Champions League.
It has also an advantage of growing the line of products and acquisition of better human resources. Another opportunity available for Heineken Company is the ability to acquire any company in craft beer through its financial resources. If you look at the financial statement of Heineken you could realize that the company has huge financial resources which can assist them to acquire any company without borrowing from banks. The company can acquire or merge with any craft beer company in the US or in Africa for strategic reasons.
Another opportunity is that Heineken Company obtains a great market segment through the supply of beer using integrated means. This means that the use of fridges, electrical rails, refrigerated ships, the product of Heineken can reach any part of the world including Asia, African, South America, Australia, North America and Europe. The company with the financial resources of Heineken can produce a good tasting beer because of the new technology they have embraced and the human resource they have.
Another opportunity for the company is the ability to produce a product which can be acceptable in the Muslim world as a drink that can be consumed by Muslims. This will give companies in the Muslim world a major challenge. This form of diversity for Heineken can assist them to increase their resources in terms of financial. The company can also diversify to other activities that are related to beer production because of unlimited financial positions they boast. The company can enter into advertisement, construction of stadiums like emirates and even the production of soft drinks which will give the Coca cola Company a run for their money.
The company also can increase its market share through sponsoring HIV/AIDS advertisements and programs in various parts of the world where HIV/AIDS prevalence is high. The increase in the market will enable her acquire more resources as compared to other companies in the brewing industry. Another opportunity available for the company is to start a fund that sponsors wildlife and needy children in various parts of the world. They should also be involved in funding conflict resolutions in various parts of the world using their huge financial resources which will assist them acquire a greater market share.
There exist several threats for the Heineken Company which are both internally and externally. These can emerge from the financial position to operations. The company operates in many countries which may cause double taxation. Also in complying with accounting standards, the company finds themselves in a difficult position when one of the segment markets recognizes different accounting standards from the mother country. For the company to have uniformity they should also lobby in various accounting governing bodies in various countries where they operate to adopt international accounting standards.
Another threat for this company is the change of prevalence of the American market towards their home made products. This will give Heineken Company a major in the American segment market. The Americans will prefer to improve a home made company as compared to a company perceived to be foreign. In the industry there are new taxes imposed to beer products in order to discourage the consumption of beer. This is slowing down the market growth of beer. When the beer market is coming down Heineken Company will not expect growth as they have been enjoying in the past.
Also most countries are trying to industrialize and they are imposing huge taxes to foreign companies especially those with transfer costs. This will affect the profit of Heineken Company. The company should come up with strategies that will enable them maintain and acquire another market share if they have to be on the front. They should have knowledge on the prevalence of the market abroad and forecast change of regulations in various countries if they have to expand their market.
Another strategy the company should adopt is the acquisition of small companies in the African continent and some parts of South America and Asia to enable the company stand tall in the brewing industry. Strategic alliances with the suppliers and distributors abroad are a very crucial strategy for the company for its growth. The company should give the abroad distributors incentives which are above what is offered by competitors so that its products will remain in the market as a leader. Heineken Company should try to be listed in the American Stock Exchanges in order for the American people to have confidence in the company.
The company also should sell their shares in various parts of the world like in African where there is a huge market like in Nigeria, South Africa, Kenya and some parts of North Africa. Business for Heineken Company has a future growth and stabilization should they adopt the listing strategy.
REFERENCES
1. Bhaaskar Nath; Environmental Management In Practice; Routledge 1999 2. M. Armstrong; Strategic Human Resource Management; Kogan Page, 2000 3. Anne W Harzing ; J V Ruysseveldo; International Human Resource Management; Sage Pub; 2004

Categories
Company

Swot Analysis of Walt Disney Company

ESP.. Is a multimedia, multinational sports entertainment company that operates eight 24-hour domestic TV sports networks. ESP.. Networks reach customers in 190 countries and territories in 11 languages. ESP.. Has distribution agreements with 27 international sports networks which further enhances its appeal adding positively to its ability to reach a large audience. The company’s ESP.. Cable network had a subscriber base of 98 million in the US at the end of PAYOFF. During the same period, ASPEN, SPEWS, SEPSIS, and ESP.. Classic had 98 million, 74 million, 73 million, and 31 million subscribers, respectively.
In addition, according to Walt Disney, ESP.. Radio Network is the largest sports radio network in the US and is carried on more than 350 stations. The company’s Disney Channels Worldwide cable network operates Disney Channel, Disney Junior, Disney CD, Disney Cinematic, Hungary and Radio Disney. Disney Channel has a strong competitive advantage as it is one of the two dominant cable networks for children, the other being Nickelodeon. Disney Channel airs original and acquired series and movie programming targeting children and families and had a subscriber base of 253 million globally in PAYOFF.
Disney CD airs live-action and animated programs and has presence in 130 countries worldwide. During PAYOFF, Disney CD had 175 million subscribers globally. In addition, Disney Junior had 125 million subscribers globally at the end of PAYOFF. Moreover, Walt Disney’s BBC Family and Soapstone TV networks had a subscriber base of 97 million and 66 million respectively. The A Television Networks (EATEN), part of the company’s cable network operations, includes A&E, HISTORY, BIO, H2O, History En Epola, Lifetime, Lifetime Movie Network (LIMN), and Lifetime Real Women.

Internationally, A&E programming is distributed in over 1 50 countries through Joint ventures and striation agreements with affiliates. During PAYOFF, A&E, Lifetime Television, and HISTORY TV networks had 98 million subscribers each, while LIMN, BIO, H2O, and Lifetime Real Women had 84 million, 69 million, 68 million, and 16 million subscribers, respectively. Significant customer reach of cable networks operations provides a competitive advantage that is not easily replicable. The company’s content, which is produced, is distributed across a wide base of subscribers around the world.
The large subscriber base therefore enables higher margins for the company. The company’s large customer reach also highlights Walt Disney’s appeal. Such appeal facilitates better bargaining power with multi-channel video programming distributors (Mopeds), the primary revenue source for Walt Disney. Additionally, the companies which have high reach enjoy higher pricing for the advertisement sales on the channel. Accordingly, the company’s large subscriber base and reach provide stability to the company’s operations. Strong brand portfolio The company has a strong brand portfolio.
The company has built a collection of some of the world’s best media brands including Disney, ESP.., BBC, Paxar, Marvel, and Localism that provide enormous opportunities for the company to continue to rate high-quality content. Disney’s ability to noontime its characters and franchises across multiple platforms–movies, home video sales, merchandising, and theme parks”is unparalleled in the media industry. Also, Disney’s theme parks and resorts are not easily replicable, considering the tie-ins with its other business lines.
ESP.. Is a leader in sports programming. It holds a dominant position in college and pro football programming in the US. Further, the company’s BBC brand delivered three of the fall season’s top 10 scripted series, including Modern Family, the number one moody on television; Grey Anatomy, television’s top-rated broadcast drama; and Once Upon a Time, a hit in its second season. Also, Good Morning America officially became the country’s top morning show, and BBC News and BBC-owned stations covered the year’s most important events.
Moreover, the acquisitions of Paxar and Marvel, also added to the company’s repository of strong brands. Paxar bolstered the company’s animation business. The Walt Disney Studios has witnessed massive success at global box office records with Marvels ‘The Avengers’, the year’s number one hit as well as the third-highest grossing film of all time, with more than $1. Frankincense, and Walt Disney Animation Studiousness-let Ralph demonstrated the company’s diverse creative successes.
Further, the recent success of Iron Man 3, is an indicator of the company’s strong brand portfolio. Page 5 Further, with the acquisition of Localism and its Star Wars franchise in 2012, the company can significantly enhance its ability to serve consumers with a broad variety of the highest-quality content. The company plans to release a new feature film Star Wars Episode 7 in 201 5, with more feature films planned, along with television programming, games and merchandise, and an expanded Star Wars presence in the Meany’s parks around the world.
The company’s strong brand portfolio enables it to attract customers. Diversified entertainment businesses Walt Disney has diversified entertainment businesses. The company’s media networks segment engaged in the operation of domestic broadcast TV network; TV production operations; domestic and international TV distribution; domestic TV stations; domestic and international broadcast radio networks; domestic radio stations; and publishing and digital operations. The segment encompasses the ESP.., Disney Channels Worldwide, BBC Family and Soapstone networks.
It also includes the BBC Television Network. Walt Disney’s parks and resorts segment owns and operates the Walt Disney World Resort in Florida; the Disneyland Resort in California, Lanai; a Disney Resort & Spa in Hawaii; the Disney Vacation Club; the Disney Cruise Line; and Adventures by Disney. The company manages and has ownership interests in Disneyland Paris, Hong Kong Disneyland Resort and Shanghai Disney Resort. It also licenses the operations of the Tokyo Disney Resort in Japan.
Similarly, the company’s studio entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays. The segment distributes produced and acquired films (including its film and TV library) in the theatrical, home entertainment and TV markets under the Walt Disney Pictures, Paxar, and Marvel banners. The company also distributes films under the Touchstone Pictures banner. The company produces and distributes Indian movies worldwide through its JET banner.
Walt Disney’s consumer products segment develops relationships with licensees, publishers and retailers throughout the world to design, develop, publish, promote and sell products based on Disney characters and other intellectual property through its merchandise licensing, publishing and retail genuineness. Moreover, the company, through its interactive media segment offers branded entertainment and lifestyle content across interactive media platforms. Walt Disney offers content through multi-platforms such as tablets, mobile and online.
Significant multi-platform presence provides sustainable source of revenues as broad portfolio of entertainment business, Walt Disney is able to target diverse customer segments. Through this, the company will be able to effectively cater to a varied customer base there by enhancing the ability to attract large customer base. Furthermore, the company’s businesses are complementary in nature. The popularity of content can be used for the company’s theme park, retail and merchandise segments to drive appeal for these products and services there by providing opportunities for incremental revenue growth.
Walt Disney maintains a well- balanced revenue stream in terms of its segments. For instance, in PAYOFF, media networks, Walt Disney’s largest segment, generated 46% of its overall revenues. This was followed by parks and resorts (30. 6%), studio entertainment (13. 8%), consumer products Page 6 (7. 7%), and interactive media (2%). Diversified entertainment businesses help the many to cope with a downturn in any particular business. Weaknesses Concentration of operation in the US and Canada Walt Disney is highly dependent on the US and Canada for its revenues.
Although, the company has presence across North America, South America, Europe, and Asia Pacific, it generates majority of its revenues from the US and Canadian markets. Walt Disney generated about 75. 1% of its total revenues from the US and Canada in PAYOFF, which does not truly reflect its global footprint. It demonstrates geographic concentration, which increases its business risk by making it vulnerable to economic and political uncertainties in the reticular market. Further, the company’s global competitor, News Corporation has generated significant amount of revenues from its international operations.
News Corporation, a media company based in the US, recorded approximately 43. 9% of its total revenues (fiscal year ended June 2012) from international regions including Europe, and Australia and other regions. Concentrating on matured markets such as the US and Canada increases the country specific risks to the company and restricts its growth opportunities compared to its competitors. Opportunities Increased focus on expanding presence in emerging economies Walt Disney is soused on increasing its presence in emerging economies such as China and India.
In PAYOFF, the company and Shanghai Shined (Group) Co. ,(Shined) entered into between the company and Shined, in which Shined owns a 57% interest and the company owns 43%. In March 2013, the company unveiled the first image of a model of Shanghai Disney Resort, featuring the resorts theme park, Shanghai Disneyland. Earlier, in April 2012, Walt Disney, the Ministry of Culture’s China Animation Group and Tenant, China’s largest internet service provider, formed a partnership named “The National Animation Creative Research and Development Cooperation” to advance China’s animation industry.
As part of the initiative, the company would provide its expertise in storytelling from concept creation and story development to market research. This partnership would enhance the company’s position in the Chinese animation industry. The company has also invested in India. In January 2012, Walt Disney acquired JET Software Communications, a media and entertainment company based in India. This acquisition positioned the company to become the Indian’s leading film studio and TV producer.
The deal also added six of the country’s most popular entertainment, news, and film channels to the company’s portfolio, aging page 7 it one of Indian’s premier broadcasters as well, reaching more than 100 million viewers every week. The JET deal also positioned the company as a significant player in the digital media space. The company’s increased focus on expanding in emerging economies such as China and India increased Walt Disney’s geographic footprint and will further enhance its subscribers base and market share.
Positive outlook for gaming market The gaming market is expected to grow rapidly in the years to come. According to the industry estimates, the global gaming market reached $70. 5 billion n 2011 and is expected to reach $117. 9 billion in 2015, representing a compound annual growth rate (CARR) of 13. 7% during 2011-15. In the overall global market, Asia-Pacific region is expected to grow rapidly. The increase in high speed internet connectivity, sophisticated gaming techniques, efficient hardware compatibility, increased disposable incomes, are the drivers of growth for the gaming industry.
In particular, the mobile gaming market is gaining traction. According to industry estimates, the mobile gaming market is expected to increase from $12. 3 billion in sales in 2012 to $15. 2 billion by 2015. The rising popularity of smartness and tablets are the growth drivers for the mobile gaming market. The company has been increasing its focus on gaming industry. During 2012, Disney’s Where’s My Water became the leading mobile game in 96 countries, and the various versions of the game was downloaded more than 100 million times.
In PAYOFF, the company launched five leading mobile games and also had tremendous success with its first branded social game, Marvel: Avengers Alliance, which garnered critical acclaim and Infinity, a new gaming platform for people to play all Disney properties any time, any lace, across devices to create their own unique gaming adventures. Positive outlook for gaming market will enable the company to enhance its revenues in the years to come. Threats Competitive pressure The company operates in highly competitive markets.
Walt Disney’s media network business competes for viewers primarily with other TV and cable networks, independent TV stations and other media, such as digital versatile discs (DVD’s), video games and the internet. Its TV and radio stations primarily compete for viewers in individual market areas. The growth in the number of outworks distributed multi-channel video service providers (Moves) resulted in increased competitive pressures for advertising revenues for both the company’s broadcasting and cable networks. The company’s cable networks also faces competition from other cable networks for carriage by Moves.
In addition, the media network business competes for the acquisition of sports and other programming. The market for programming is very competitive, particularly for sports programming. Moreover, its internet web sites and digital products compete with other web sites and entertainment products in their respective categories. Page 8 Similarly, Walt Disney’s theme parks and resorts as well as Disney Cruise Line and Disney Vacation Club compete with other forms of entertainment, lodging, tourism and recreational activities.
The studio entertainment businesses compete with all forms of entertainment. A significant number of companies produce and/or distribute theatrical and TV films, exploit products in the home entertainment market, provide pay TV programming services and sponsor live theater. In the consumer products segment, Walt Disney’s online sites and products compete with a wide variety of other online sites and products. Its video game business competes primarily with other publishers of video game software and other types of home entertainment.
The company’s key competitors include CBS, Fox Entertainment Group, Time Warner, Victim, Liberty Media, Lions Gate Entertainment, News Corporation, Oriental Land, Carnival Corporation, Marriott International, Stardom Hotels and Resorts Worldwide, and Brunswick. Competition in each of these areas may divert consumers from the company’s creative or other products, or to other products or other forms of entertainment, which could reduce its revenue or increase marketing costs.
Such competition may also reduce, or limit growth in, prices for Walt its media networks, parks and resorts admissions and room rates, and prices for consumer products from which the company derives license revenues. Increasing piracy could impact revenues Piracy of motion pictures, television programming, and video content poses significant challenges to several of the company’s businesses. Technological advances allowing the unauthorized dissemination of motion pictures, television programming and other content in unprotected digital formats, including through the internet, increases the threat of piracy.
Such technological advances make it easier to create, transmit and distribute high quality unauthorized copies of such content. As a result of piracy, Hollywood faced a crisis as its most important revenue stream, DVD sales, which declined by more than 20% during 2006-2011. Similarly, according to Cable and Satellite Broadcasting Association of Asia, lack of market transparency and tolerance for illegal connections to cable systems have resulted in big losses in many Asian countries. The proliferation of unauthorized copies and piracy of the company’s products or the products it licenses from third arties will reduce Walt Disney’s revenues.
In addition, developments in software or devices that circumvent encryption technology increase the threat of unauthorized use and distribution of digital broadcast satellite programming signals. Page 9 Copyright of Walt Disney Company SOOT Analysis is the property of Marketing, a Denominator business and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder’s express written permission. However, users may print, download, or email articles for individual use.

Categories
Company

Company Toshiba

Another example is the processes that are utilized in the company Toshiba. In 2001, the company introduced an innovation program that was supposed to improve the quality of their products and processes. The new innovation program helped Toshiba to save up to three million pounds globally and over ten million pounds in United Kingdom. In 2003, about 159 ideas were implemented, if truth to be told there is a welter of suggestions for Toshiba that the company has to place a limit to them.
Another element implemented by Toshiba is sharing the ideas. A number of innovative projects have been resulted from conveying the employees from various departments. After every 6 months, the company offers an innovative awards and trophy presented to the each employee. Moreover, the company pays a bonus of up to ten thousand pounds to the employees who are involved in the project that have the biggest impact. (K. Harigopal, 2006).
Three of the examples mentioned in this paper indicates 6 elements that are compulsory to entail employees in the innovation procedure therefore making sure that the possession of the ideas remains with its originator, top level buy-in, persuading the employees to work mutually in implementing and developing new ideas, offering optimistic encouragement process, constructing a clear and well defined process, lastly to make sure whether the program is running within the organization consistently or not. (Gary D. Holt, Peter E. D. Love & L. Jawahar Nesan, 2000)

One simple way to start employ empowerment at workplace is to build up a suggestion box in which employees can give suggestions to the company devoid of any fear. As far as for the managers, they should consider those suggestions and implement them on a serious note. A forum can also be build where the suggestions given by the employees get a response in return. Additionally, managers of the organization can hold a meeting once in a month with the employees to give open ideas.
(Alex Blyth, 2004). In order for the betterment of the company, at least one suggestion should be considered plus for the employees to feel that they have also helped the company in some way. If the ideas are not approved then it emphasizes that all power is for the managers of the organization. In any organization, employee empowerment can work properly if the managers take open ideas from the employees and implement them. If not than employee empowerment does not exist in the organization.
Bibliography
Employee Retention (2007), Employee Empowerment, Accessed on November 13, 2008 from http://retention. naukrihub. com/employee-empowerment. html K. Harigopal (2006), Management of Organization Change: Leveraging Transformation, India: SAGE Publications Jay H. Heizer & Barry Render (2000), Operations Management: Principles of Operations Management, Prentice Hall Tricia Ellis-Christensen (2008), What is Employee Empowerment, Accessed on November 13, 2008 from http://www. wisegeek. com/what-is-employee-empowerment. htm Gary D. Holt, Peter E. D. Love & L.
Jawahar Nesan (2000), Employee Empowerment in Construction: An Implementation Model for Process Improvement, 6, 47 – 51 Alex Blyth (2004), Can Employee Empowerment produce Business Benefits? Ethical Corporation, Accessed on November 13, 2008 from http://www. ethicalcorp. com/content. asp? ContentID=2433 Robert Heller (2005), Employee Empowerment: Management giving Power to the People, Thinking Managers, Accessed on November 13, 2008 from http://www. thinkingmanagers. com/management/employee-empowerment. php Sanjay Menon (2001), Employee Empowerment: An Integrated Psychological Approach, 50, 153 -180

Categories
Company

Treadway Tire Company Lima Plant: SWOT analysis

SWOT Analysis for Treadway Tire Company Lima Plant
The Treadway Tire Company has almost 9,000 employees in North America. Treadway Tire is one of the major suppliers of tires to the original equipment manufacturers (OEM) and replacement tire markets. The company sells under the brands Treadway Primo, Treadway Performance, and also manufactures private brands. Treadway Tire Company has eight manufacturing plants in North America. The Lima plant in Ohio is one of them and has a serious problem of high turnover (almost 50%) of foremen. This SWOT analysis is mainly focused on the Lima plant in Ohio.
Strengths

Leadership in the industry. Treadway Tire Company is one of the major tire suppliers of the original equipment manufacturer (OEM).Their major customers are car manufactures such as Ford, General Motors, and Chrysler. High productivity and quality. The Lima plant expanded and modernized its facilities to increase capacity and manufacturing technology. Due to this $100 million expansion, the Lima plant has become one of the Tradeway’s top plans for productivity and quality. Lowest cost producer. The Lima’s plant rotating shifts of 12 hours vs. 8-hours shifts has reduced significantly the cost and can be the lowest cost producer in North America. Competitive salaries and benefits. Foremen earn $30 per hour, overtime, compensation for years of service, and benefits. In exit surveys foremen were very satisfied with the salary and benefits provided by the company.
Weaknesses
High turnover ratio. The foremen turnover ratio is extremely high at 46%. This means that in 2007, 23 out of the 50 foremen left the company. 10 did it voluntarily and 13 involuntarily. The issue of high turnover is affecting productivity and putting at stake the Lima’s plant positioning as the top productivity and quality rating plant of Treadway Tire Company. Low employee morale. According to the exit survey and current views of the foremen, they have low morale Foremen feel that they are not respected, they lack authority and support from the supervisors and managers. In addition, they have an adversarial relationship with hourly workers. When disciplining workers, foremen think they get away with it because workers are protected by the union.
Poor communication. Foremen are the direct link between the mid and upper management and the line or hourly workers. They have pressure from line workers, supervisors and managers. They feel isolated and supervisors and managers do not listen to their concerns. There are not open channels of communication with supervisors and line workers. Thus, these conditions cause the foremen frustration and adversarial relationships with supervisors and line workers. Thus, the main reasons why the leave or are forced to leave the job: lack of control of the workers, not meeting forecasts, and adversarial relations with supervisors and managers. Job dissatisfaction. The company does not provide support to the foremen to perform their duties. Foremen are overworked and under-recognized. This causes the departure of almost half of the foremen during the year. Besides, foremen feel isolated and they do not see ways to advance in the company. Unionized labor force.
All hourly workers are unionized with United Steelworkers (USW) and this causes constant conflicts with the union in terms of grievances, contract bargaining, salaries, overtime shifts, and benefits. Foremen consider that the union overprotects the hourly workers. Lack of formal training. There is not a formal training policy for the foremen. Foremen receive informal training only at the discretion of the supervisor or manager. Sink or swim approach or tried-and-true management styles are used by supervisors with the foremen. Foremen perform a variety of complex administrative, technical, and leadership duties that require extensive training. Rotational training and mentor training are on hold due to budget cuts. No advancement opportunities. The pool for foremen is heavily concentrated in internal candidates. There are very few new openings at the Lima plant for foremen to move up to supervisors, and also few openings to move up from supervisor to manager. When an opening is available, the company hires external candidates. Thus, the plant was not satisfactory developing new managers and supervisors.
Opportunities
Cost and productivity leadership. By resolving the issue of high foremen turnover, the Lima plant can consolidate its position as the top’s Treadway plant in productivity, quality, and lowest cost producer. Expansion to new markets. Treadway Tire as a major supplier of OEM in North America may use its positioning to enter new growing markets in Latin America, Asia, and Europe. Effective training program. If the Lima plan is able to develop an effective training program for foremen and thus reducing their turnover, this program can serve as a model and may be used by other Treadway plants. This training program will increase job satisfaction, boost employee morale, and productivity. New technology and development. New technology advancements can improve the tire manufacturing process and reduce the dependency of oil derivates raw materials.
Threats
Raising cost of raw materials. Raw materials used by the company are petroleum derivatives and highly dependent on oil prices. Variance of oil prices affects negatively the company because it increases the costs affecting profitability and competitiveness. Global competition. International competitors may displace the leadership position of Treadway Tire and lower its market share and profitability. Main competitors are located in Germany, Sweden, Finland, Italy, and Japan. New manufacturing tire companies are strongly emerging in India and China. Problems with the union. Unionized labor may cause problems with the company in terms of contracts, salaries, and benefits. A generalized strike may paralyze operations at Treadway plants. New Regulations. New environmental or government regulations may require new standards in the manufacturing of tires. This can be a factor of increasing costs.
Foremen
Foremen employees are experiencing job dissatisfaction at the Treadway Lima plant. This is causing a serious turnover rate of 46% during the year. In other words, 23 out of the 50 foremen left the job during the year and had to be replaced. Exit surveys reveled that foremen had very low morale. They feel left alone and overwhelmed with plenty of responsibilities, but without the necessary training and tools to perform their duties. The lowest areas of dissatisfaction were training and development, working conditions, supervisors, and advancement opportunities.
In addition, during a meeting organized by Ms. Wall, the Human Resources Director, the foremen expressed their frustration about their lack of authority and the adversarial relations with the hourly workers. They said that the administration expects them to meet or exceed targets, but they do not receive the support to accomplish these objectives. They have issues with staffing the production, disciplining workers, and union’s grievances. Besides, one of the major issues is the lack of training. Foremen perform a variety of administrative and technical duties such as scheduling, payroll, staffing, and production sheets. Yet, they do not receive a formal training and the company does not have an ongoing formal training for foremen due to budget reasons. Another issue affecting the foremen is the lack of opportunities to advance in the company.
The consequences of foremen’s job dissatisfaction have become a major issue at the Lima plant. The immediate consequence is the high turnover ratio. Almost half of the foremen during the year left the company voluntarily or involuntarily. As a result, productivity is being affected because the production targets are not met. Besides, the relationships with the hourly workers and supervisors are also affected. The relationships with hourly workers are seen as adversarial because they do not respect the authority of the foremen and hourly workers complain that foremen are rude and they treat them like slackers. Supervisors just put pressure to achieve the targets, but they do not provide any support to foremen. There is a clear lack of communication with lack of communication with supervisors and managers.
Work System
Treadway Tire work system has many elements that contribute to the problems experienced by the foremen. The first aspect is the 12 hour shifts. This policy is saving money to the company, but it is placing an enormous pressure on workers due to long extended day. There are many people absent or arriving late to work. So this policy may be counterproductive and it is affecting not only the foremen, but also the hourly workers and the productivity as a whole.
The second aspect is the lack of formal training. Foremen perform a wide range of activities in their daily jobs that may be overwhelming and counterproductive. However, they do not receive a formal training to perform these functions. There is only informal training for new foremen at discretion of the supervisor or manager. Formal training has been place on hold due to budget cuts. This is causing frustration of the foremen because they feel powerless to fulfill their duties without proper training and support.
The third element is the lack of advancement. There are few opportunities for advancement at all levels. Foremen who made it to supervisors are not typically promoted to managers because they administration selects an outside candidate.
Finally, the lack of communication in the chain of command is affecting also the foremen. Supervisors tend to blame foremen for not meeting the targets, but they do not provide support to the foremen to achieve these objectives. Neither the managers are taking responsibility in supporting the foremen. In addition, the efforts to improve communication by the plant manager are inconstant and minimal. There is no a formal channel of communication and the foremen are left alone and nobody is taking responsibility for their high turnover ratio.
Plan of Action
There are many strategies Treadway may implement to solve the high turnover issue at the Lima plant and improve the job satisfaction of the foremen.
Strategy One
Implement a formal training program. A formal training and mentoring program needs to be fully funded and implemented. Foremen play a key role in the company and they need to be trained and supported on constant basis. They need to receive training in the areas of management, leadership, production planning, payroll, conflict resolution, and labor/union laws. Besides, the mentoring program is necessary with supervisors, so they take ownership of the foremen’s performance and provide the necessary support. This program will empower the foremen and will improve the relationships with hourly
workers and supervisors.
Strategy Two
Modify the evaluation and targets for the foremen. Instead of having a yearly informal evaluation, the management should develop a monthly evaluation of the foremen so they have opportunity to make corrections and meet the targets. This new evaluation should consider both quantitative and qualitative data. In addition, this evaluation should also consider external factors that affect foremen productivity such as hourly workers absences or machinery breakdowns.
Strategy Three
Create collaborative committees. Managers and supervisors must have open channels of communication with foremen and hourly workers to improve productivity and avoid adversarial relationships. One way to improve this communication is through the creation of collaborative committees. These committees will formed by hourly employees, foremen, supervisors and managers. They will discuss issues related to targets, production, productivity, and continuous improvement. These committees will keep informed the top management of the issues at the production line level.
Strategy Four
Review the shift schedule. The 12-hour shift work schedule should be revised and compare with the 8 hours shift schedule in terms of savings and productivity. If the company is only considering the savings on the head counts, also the productivity and problems related with long shifts should be considered. The 12 hour shift may be saving money in personnel, but it may be losing money in productivity.
Strategy Five
Modify advancement policies. Policies should be revised and clearly outline the requirements and steps to follow to advance at the company. More in-house opportunities should be given to foremen and supervisors to advance at Treadway Tire Company.

Categories
Company

Ethical Consumerism: The Local Food Company

Executive Summary
The report aims to understand the concept of ethical consumerism, with the help of an organisation that operates ethically. The selected organisation is The Local Food Company in the UK. The Local food company is engaged in sourcing and delivery of fresh, local and organic food including fruits and vegetables (organic and non-organic), dairy, grocery baked products and household items. Firstly, the report will provide an introduction to ethical consumerism and ethical products. Secondly, the report will conduct a detailed analysis of The Local Food company ethical activities and its socially responsible business. Thirdly, findings from a short opinion survey based on consumer behaviour are presented, Lastly, the report will conclude with the key findings.
1. Introduction: Ethical consumerism

Consumers are getting more informed with the help of Internet and this is influencing their buying decisions. According to many scholars, the idea of ethical consumerism rose from the end of the 20th century due to increased media and ability to access information, and better availability of products (Newholm and Shaw, 2007). Ethical consumers have political, spiritual, religious, environmental and social motives for purchasing one product over other options (Harrison et al., 2005).
There are two types of purchase behaviour as stated by economists: traditional purchase behaviour and ethical purchase behaviour. People will normally buy the cheapest product but only if they are confident that the product is as good as slightly more costly options available (Beardshaw, 1992 cited in Harrison et al., 2005). This is known as traditional purchase behaviour. Sometimes, customers boycott a certain product or brand and opt for a fair labelled or environmental friendly product as they consider ethical means more important (Harrison et al., 2005). This type of behaviour is termed ethical purchase behaviour. An ethical consumer is not someone who is ignoring price and quality but is applying additional criteria when buying a certain product. Ethical consumerism can be defined as the degree to which the customers prioritise their own ethical concerns when making product choices (Shaw and Clarke, 1998). Ethical consumerism is linked with morality. According to Crane and Matten (2005), morality is related to the norms, beliefs and values embedded in the social processes that aims to define right or wrong for an individual or society. Ethical consumers can boycott a product if they read something unethical about a brand or they can simply purchase products, which are ethically sourced or have ‘fair trade’ tag. Ethical consumers consider the impact of their act of personal consumption on the society and environment. They don’t purchase product that are harmful to environment and respect animal and human rights. For example: purchasing free-range eggs; boycotting products manufactured by child, forced labour or labours who are offered low wages.
There are various products that fall into the ethical category are banking, cleaning, cosmetics & toiletries, dairy, energy finance, fashion, food, insurance, soft drinks, tea industry and travel. According to ethicalconsumer.org (2014), there are over 200 ethical products in different categories. for example, a washing machine to save water and energy, a cooker with the least environmental impact, baby bottle sterilizer and impact of plastic on environment; living wage of worker who manufacture clothes; materials use in shoes-pvc, leather, wool; purchasing a greener desktop computer; milk and animal welfare; low wages in banana industry; lead in lipstick; fair trade flowers; bio detergent for cleaner environment; green or eco insurance companies; mobile phone helping activists; human rights issues in constructing hotels, etc.
2. Review of an ethical organisation: The Local Food Company
The Local food company is engaged in sourcing and delivery of fresh, local and organic food including fruits and vegetables (organic and non-organic), dairy, grocery baked products and household items (The Local Food Company, 2014a). The company aims to source majority of products from Devonshire and West Country. It is a family business operating for over 200 years in Devon. The company is based at farm shop, Countrymen’s Choice at Ivybridge. The company has provided an alternative to supermarket online services. Being a small producer, it is successful as an online retailer. The company has been awarded for its green practices and ethical means of working. It includes Internet retailer of the year in 2006 for the South West, Green business of the year in 2007 and greening Devon finalist in 2007 EDBI awards. The company has proved how to run a sustainable food business. The company states, “At The Local Food Company we believe in a fair deal for our customers, our suppliers, the environment, animals and indeed for ourselves”.
The Local Food Company claims to operate ethically. “The Local Food Company are a very green and ethical business; we believe right now we are the greenest place you will be able to purchase food from in the UK” (The Local Food Company, 2014a). In addition to ethical sourcing of product, a business is also regarded as socially responsible when it fulfil the needs and wants of different stakeholders such as customers, employees, suppliers and investors. Any businesses that incur ethical artefacts attract as well as retain investors, customers and employees. To formulate this aspect, we take into account the Local food company ethical trading policies (The Local Food Company, 2014b). In exercising business ethics aspect, the Local Food Company have registered all employees to trade unions and provided them with fair wages and equal treatment. The company is against child labour, deductions from wages as a disciplinary measure, forcing employees to work excessive hours and discrimination. In addition to this, the company has no tolerance to bribery, blackmailing and bullying aspects among the staff and the consumers (The Local Food Company, 2014b). The Local Food Company has improved working conditions for employees making it safe and hygienic, hence boosting the morale of employees as well as strengthening the bond between the company and consumers preferences based on the products they produce. In some areas, it also operates above the minimum standards required by law in terms of safety of employees, rewards and values. This shows that the company’s main motive is not just to earn profit but also consider their employees’ needs and wants. At Local Food Company, any member of the staff is free to view his or her sentiment and the company usually accepts the sentiment equally without racial prejudice as well as discrimination based on gender. It can be seen that the company works as a socially responsible business in terms of employment practices; different ethical policies of The Local Food company are clearly stated on the website.
The Local food company also promotes and encourages suppliers to follow ethical guidelines. All suppliers signed up have an e logo next to their goods. Also, there is no restriction placed on suppliers. Suppliers are free to sell from anywhere, via any number of outlets to buyers. However, the company monitors supply chain standards for unethical practices. Direct suppliers are asked to sign the acknowledgement of key trading ethical practices (The Local food Company, 2014b). Then after 1 year of work together with supplier, The Local Food Company introduces self-assessment questionnaire to promote ethical practices. Then, the company visits supplier farms on a regular basis to gain understanding of suppliers’ operation. Payment is made on time and done on the basis of market price (The Local food Company, 2014b).
In order to attract customers, the company presents their ethical achievements so that customers can make informed purchasing decisions. The company engages in publishing policies, detailed supplier and product information on their website. In the first two years of trading, the company publishes comprehensive ethical and social charter giving consumers the freedom to access information about ethically sourced products (The Local Food Company, 2014b).
It is good to know that any company within business platform needs to set out ethical guidelines that in turns lead to less risk hence increasing sales output. Based on this point, The Local Food Company in array of business produces various products including Bakery, Dairy, Meat and fish, Fruit and Vegetables, Prepared Ready Meals, Groceries and Drinks and Household items. These products however, are produced based on the standards bureau and local organic food regulations. The company has to ensure that buyers as well as suppliers are free with no restrictions to buy and sell the products anywhere and across the country on any outlets. In this way, the company ethically gives the buyer and suppliers all rights to their preferences without an essence of restrictions. The company has been able to drive business risks through these corporate forms of business to maintain maximal sales profit as far as financial outcomes of the business is concerned (Beauchamp, 2004).
The Local Food Company has played a bigger role in encouraging small producers to implement ethical practices. To ascertain the aspect of ethics, the company exercises the aspect of ‘go green’. The company ensures that all products unveiled to the consumers are in better conditions; with highest order of hygiene and that all materials used are environmental friendly. The company sells food with a low footprint in collection and delivery. They claim to have lowest carbon footprints of all the businesses in the UK (The Local Food Company, 2014c). The company encourages customers to but locally and regionally, and cut food miles. Foods are based on high animal standards and sustainable farming practices. The company provides written guidelines on the waste disposal and insists on recycling programme for the benefit of the consumers. They reduce, reuse, and recycle everything possible.
3. Short opinion survey: what influences consumer buying behaviour
A short opinion survey was carried out from a sample of students at GSM London. Students were asked about the main factors that influences buying behaviour. Most of the students considered the location of the store as an important aspect when purchasing a product. One of the student stated, “I don’t like to travel much for a product and always looking for options available near my location such as Starbucks coffee shop that can be found anywhere”. Some students also considered that they avoid stores that are crowded. Students also considered reading online reviews before making a buying decision. A student said, “If I am planning to buy something, I always search online reviews, if majority of reviews are positive, I make a purchase without thinking of the brand”. Few students mentioned about ethical behaviour in purchasing. They stated that after reading about a brand in news about forced labour or child labour, they boycotted the brand. A group of students mentioned about Rana plaza disaster, which changed the way they purchased products. The disasters resulted in number of deaths and injuries. Consumers regarded this as a serious issue and didn’t purchase from clothing brands that were involved. Students are also influenced by news videos circulating in social media. One of them stated, “I was very much depressed when I saw Peta video of how Chinese worker were handling rabbits for getting angora wool; this video encouraged me to say no to angora wool”.
4. Conclusion
An ethical consumer is the one who applies additional criteria when buying a product. They want to buy a fair-trade labelled or ethically sourced product. They consider the impact of their private consumption on society and environment. An ethical consumer simply boycotts product that are associated with child labour or other unethical activities. There are various products that come into ethical category such as food, clothing, insurance, energy, soft drink tea and finance. One of the companies that claim to be ethical is The Local Food Company, based in Devon in the UK. The company is engaged in selling of bakery products, dairy, meat & fish, fruits & vegetables and household items. The company has been awarded with many green awards. The company acts as a socially responsible organisation and aims to fulfil needs and wants of different stakeholders such as customers, suppliers and employees. Suppliers are encouraged by The Local Food Company to follow ethical procedures in production. They are given the liberty to sell their food via any number of outlets. They are paid on time and treated respectfully. Ethical policies clearly show that company is against child labour and excessive working. The employees are offered safe and hygienic working environment. For customers to choose wisely, the company has listed information on supplier standards and ethical practices on their website. With the development of Internet technology, customers are getting more informed about the products they use or consume. According to the opinion survey conducted, customers make their purchasing decision on the basis of online reviews, location of store and store environment. They also consider ethical factors when buying a certain product. They boycott a brand when they read something bad about a product or say no to product that are against human rights.
5. References
Beauchamp, T. (2004) Case studies in business, society and ethics, 5th edition, Upper saddle River, NJ: Pearson Prentice Hall.
Crane, A. and Matten, D. (2005) Corporate citizenship: toward an extended theoretical conceptualization, The Academy of Management Review, Vol. 30, Issue 1, p166- 179.
Ethicalconsumer.org (2014) Product guides, Last accessed 23rd November 2014 at:
http://www.ethicalconsumer.org/buyersguides.aspx
Harrison, R., Newholm, T. and Shaw, D. (2005) The ethical consumer, 1st edition, Wiltshire: Sage.
Newholm, T. and Shaw, D. (2007) Studying the ethical consumer: a review of research, Journal of Consumer Behaviour, Vol.6, Issue 5, p253-270.
Shaw, Deirdre S. and Ian Clarke, (1998) Culture, Consumption and Choice: Towards a Conceptual Relationship, Journal of Consumer Studies and Home Economics, Vol. 22, Issue 3, p163-168.
The Local Food Company (2014a) Welcome to the Local Food company, Last accessed 23rd November 2014 at:
http://www.thelocalfoodcompany.co.uk/
The Local Food Company (2014b) Ethical Policy, Last accessed 24th November 2014 at:
http://www.thelocalfoodcompany.co.uk/p/ethical-policy
The Local Food Company (2014) Environmental issues, Last accessed 24th November 2014 at:
http://www.thelocalfoodcompany.co.uk/p/about-us/about-environmental-issues

Categories
Company

Second part of the company name

The adverts I have chosen to analyse, rather accidentily, advertise the same product; holidays. However, since one is for cruises in thre Medditeranian and one for short breaks in the highlands of Scotland, there are sure to be differences in audience, motive and so on. The motives haveto be considered entirely different for the two adverts; one is an advert intended to sell the cruises of a perticular company (Swan Hellenic), whilst the other is intended to increase the turism trade in the highlands of Scotland. The product for the Swan Hellenic advert are the cruises themselves, with the brand name being Swan Hellenic, a name used by a larger company (P&O Princess Cruises); the second advert is not nearly so clear cut; the product seems to be holidays in the Scottish highlands, regardless of the company banner, and the brand name seems to be, rather oddly, Scotland itself.
Both adverts are trying to sell a perticular holiday, but approach it in entirely different ways; the Swan Hellenic advert uses the already existing image of the medderanian , where as the Scottish highland advert tries to create a new image for them. This is seen in both the picture and text of the adverts; the Swa Hellenic presents the Medtterian at its idyllic best; sweeping green trres, sundrenched white rocks and amazing mountain scenery are used; the image of the meddeteranian as a place of history and culture is also created; a picture of an ancient monnestry implies the cultural and historical significance of the medeteranian.
In contrast, the Scottish highlands advert goes directly against images traditionally asocitared with Scotland (tartan, bagpipes, thistlkes and the coloursof the Scottish flag), presenting Scotland as suave and sophisticated through the use of stylish andelegent purples (no tartan colours, no blue and white) with stylish sillouetes of a young couple rather tha traditional imagesof the scots, perticularly higlanders, who are seen to be more Scottish than other Scots.

The personality created for Scotland is an andvanced and chic one; the personalitybeing create or te Meddeterian is a rustiic and traditional one, with rural and religious values being upheld; the use of an imgae of a remote lcation also suggests that the medeteranian is an ideal place to visit if you wish ‘get away from it all’ and that it is free from the pressures of modern life(this is implied by the use of a monnestry, the monnestrry shows the importance of religion to the people of the Meddeterian and perhaps that the havesimpler values than modern westeners; this reinforces the image of the area being free of the contraints of modern life), whilst the opposite image is created for Scotland via the use of modern and fashionable colurs and a modern, young couple.
Both these advertisements came from The Times’ glossy magazine supplemnt, so the target audience is likely to be the more educated individuals who make up the readership of The Times, and who will be able to afford expensive cruises or luxury breaks to the Scottish highlands; this is affirmed by a staementon the Swan Hellenic advert; ‘cruises start from just �1,249′. Clearly, the the use of the word’just’ before a sum which is out of the question for many’s holiday budgets shows that the audience are higher earners, especcialy when one considers the fact that is the starting price, the minimum amount needed for a cruise.
The target audience of the Scotland advert is most probably either young couples or slightly older couples wnating to revive lost romance with a cosy break; the use of an embraci ng couple confirms this. The Medderanian cruise holiday’s target audience will most probably be either couples or groups of friends who want to get away from it all and enjoy travelling, and are prepared to pay for the luxury of the cruise; herein lies the motive for buying the product; the luxury which is assured by the price tag and also the built up image of the brand name ensure that the reader of the magazine, if he or she wants luxury, will choose this product over others; the advert even uses it’s brand name’s history of reliability
The two adverts differ hugely in their use of pictures or photos; the advertisement for meditation cruises uses the scenery of the Mediterranean to try and demonstrate the beauty of the area; the picture entices the potential reader into reading the text with its stunning nature; it leaps out of the page at you because of the breathtaking nature of the scenery; in contrast, the Scottish highlands advert the picture is secondary; the use of lilac or mauve shades of purple (i.e. colours which don’t leap out at are by their nature gentle) makes the text (which is a white, which glaringly stands out) seem the key focus for the reader.
Because the Scottish highlands do not have a reputation which is desirable to the advertisers, there are a variety of techniques used to dispel it. Typically the Scottish highlands are thought to be remote and behind the times, with nothing to offer the modern person; the use of a couple ho are clearly young tries to dispel that image. Also, the Scottish highlands are typically perceived as being remote and so old fashioned in outlook; the use of modern colours and the fact that the advert shows a couple who are most probabaly too young to be married kissing and embracing near a bed try and dispel this preconception.
The use of the couple in n intimate scenario also draws many people in to reading the advert; sadly, sex sells. The image gives a cosy, personal and intimatefeel to the advert which is reaffirmed by the text; the bad weather is clearly outside the window whilst the reader sees the coupleinsideand protected from the cold; suggesting a warm atmosphere. Combined, these images suggest to the target audience (who we assume are young, perhaps newly-wed couples or older couples looking to re-kindleromance) that the Scottishh Highlands will provide a warm, cosy and intimate atmosphere for them, and also that they are modern enough to accommodate their needs; it appeals to both audiences. The medderanian cruise advert showcases the best of the medderanaian; it’s beautiful landscapes, it’s culture, it’s rich and varied history and backs all of this up with a brand name gurantee, showing a potential buyer what he or she can have in te medderanian and guaranteeing that he or she will receive it because of the brand name.
Because of the importance of the brand name and its reputation the logo is far more important in the mederanian advert; is displayed prominetly, and the features a white and pale blue with a swan; the swan is traditionally asociated with being graceful, yet strong; the colurs of blue and white show these qualities in the swan; by placing the swan so close to a ship, the qualiies transfer to the hip; the second part of the company name is also very important.
Helenic is derived from Helen of Troy, the woman whose visage ‘luanched one thousand ships’; with the beuty implied in Helen, and the grace and power of the swan, the ship becomes all of these things; beautiful, powerful, graceful; the illustration of the ship shows a pristine cruiser sailing on seas of a magnificent, rich blue, below an unclouded and unfaltering sky of royal blue; the illustration conveys all the qualities asociated with both the swan and Helen of Troy.

Categories
Company

Procter & Gamble: A Company with Global Operations

Procter & Gamble (P&G) is a leading manufacturer of personal and home care products. P&G is an international company that operates in 40 different countries. This paper will examine the environmental factors that affect how effective P&G’s global marketing efforts are. These factors known as environmental forces include social and economic forces, as well as technological, regulatory, and competitive forces.
Any business operating internationally is impacted by these environmental factors which affect how the company will market its product. Understanding how these forces impact its operations will help P&G understand the interworkings of the economy both globally and domestically and the trends that currently impact its marketing efforts, which will help P&G, create and successfully implement its marketing plan. Operating Globally:
In this day and age, globalization has allowed companies to operate internationally. According to Panayotou (2000), “Globalization is an on-going process of global integration that encompasses economic integration through trade, political interaction, information technology, and culture. Globalization brings people, culture, and information together. Globalization has helped P&G operate globally because it lowers trade barriers and increases the dependence between countries for goods and services, which means there is a bigger market for the goods that companies like P&G offers.

Globalization came about as countries saw that other countries could produce products better and cheaper than another country could (comparative advantage), so countries began producing what they had an advantage in and selling it to other countries. This trading of products became an accepted practice and eventually spurred economic growth. This caused countries and businesses to begin operating in the global market because it allowed companies to tap into this greater demand and new market for goods and services, which would expand their customer base and profit potential. Procter & Gamble: The Importance of Demographics & Physical Infrastructure
P&G knows that when operating globally the company needs to market its product, and this means you have to have a clear understanding of the market of people that will be using the product. This means understanding the people and their different cultures. Every country has a different culture. Culture tells a story about where people come from, who they are, and what is socially acceptable. Culture affects the way people perceive the world around them, and this means it will affect the way products should be marketed. A significant part of our culture is our background, characteristics, and demographics.
Demographics provide vital information about a country’s people. Information about a country’s demographics help P&G to determine the right people to market its products to and how to appeal to them in its marketing plan. P&G manufacturers and sells its products world-wide including nations outside North America, Western Europe, Japan and Korea where there is a growing demand for its products. These countries represent places with high populations of people who are aging and take care of themselves, which means they need basic household items which P&G manufacturers such as detergents and grooming products.
P&G is well- positioned in the industry segments and markets in which it operates. P&G’s success is a result of its ability to adapt its marketing mix to the standards and culture of the country in which it operates. It does this by having a good understanding of the country’s demographics and its physical infrastructure which help facilitate the development and operations of its companies. A countries physical infrastructure helps marketers determine how products will go from the manufacturer, to retailers, to the customer. Going Global: The Effect of Trade Practices and Agreements
Trade is an integral part of any country’s growth and stability. Trade is fostered by global economic interdependence and gives counties access to a wider array of products and services. Over the past decade trade has become global; trade negotiations have expanded to include more countries and are now regulated by international agreements and the World Trade Organization (Boundless, 2013). Trade has created a global economic interdependency. Global economic interdependence illustrates the ideal that no country is completely self-sufficient. “There is a need for trade among nations for goods and services as well as the resources needed to survive and grow in the global economy” (Nebraska Department of Education, 2013, para1).
This means that decisions made in one country will directly affect what happens in another country making countries more susceptible to economic problems. Although, trade increases a country’s wealth trade also leads to inequality which is why countries have trade agreements. Trade agreements are negotiated by each nation who has their own interests’ in-mind, which means some level of protectionism to protect industries that are essential to that nation (Boundless, 2013). Costs of Operating Globally: Foreign Corrupt Practices Act of 1977
Any company with international operations is susceptible to a number of risks. These risks include complying with U.S. laws affecting operations outside of the United States, such as the Foreign Corrupt Practices Act. The Foreign Corruption Act was developed to eliminate the potential of bribery to foreign officials, thwart money laundering, and reduce corruption and restore confidence in the business system.
When operating internationally, companies must abide by several laws and legislation on the local, national, and international level. This is because the company conducts business with other nations and this means abiding by the laws, rules and customs which govern the business transaction between the two nations. Furthermore, companies must also take into account that political systems directly influence international relations between nations.
This is because each country has it own laws and acceptable business practices. As well as its own political system that determines what a company can do when trying to conduct business in that country. When conducting business with different countries it is important to be aware of its political systems as it determines where products can be marketed and what laws must be abided by (Chavis, 2013).
Technology
Technology changes the way companies operate and conduct business. Technology allows companies with international operations to achieve success by allowing them to be innovative. Technology helps companies improve its equipment and manufacturing processes and anticipating consumer acceptance. On a global perspective, technology allows companies to go outside the traditional confines of selling a product and enables them to sell their products virtually anywhere. Technology has influenced every aspect of business from increasing efficiency to providing access to information and changing how companies communicate with their customers. Social Responsibility, Ethics, & Legal Obligations:
To be profitable companies must understand that there is more to staying in business than earning a hefty amount of money. Companies must also consider the social implications of their operations. This is especially important for companies operating in the global market because a damaging reputation can impact its sales domestically and internationally. Any company looking to stay in business must abide by the laws and legislation of the company in which it is operating. For example, P&G is subject to tax regulations in the United States and multiple foreign jurisdictions, and it is their responsibility to be aware of any changes in the laws and regulations of these countries.
In business, social responsibility and ethics go hand in hand. A company that seeks to have a positive impact on society is usually a company that seeks to operate responsibly and in doing so the company upholds the highest moral and ethical standards. Ethics help ensure that companies use good business practices in its operations and help companies fulfill its social responsibility to help improve the lives of its people.
For P&G social responsibility and ethics drive the company. P&G is in the business of “providing products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come” (P&G, 2013, para.2). P&G believes that by being socially responsible, and ethical its “consumers will reward P&G with leadership sales, profit and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper” (P&G, 2013). Conclusion
International companies understand that success is not just creating an appealing marketing campaign. To be successful companies have to plan extensively and have a good understanding of the global market. To market a product internationally companies must examine and plan for the environmental factors that influence how effective their global marketing efforts are. In doing so, the company will effectively reach its new market of customers and create a unique position in the minds of its customer which creates brand loyalty, generates sales, and increase profit potential.