Coffee Shop Essay

The global spread of coffee growing and drinking all started with a curious goat and that’s what legends say. 9th century Ethiopian goat herder Kaldi drank a concoction made from the beans after seeing his energetic goats eat them. The Sufi monks of Yemen in the 15th century were said to drink it as well. During the 17th century when coffee was introduced to Europe, the popularity of cafes followed the same pattern as most coffee houses around the world. It quickly became a venue for people to congregate, exchange views, write poems, plays, and political testaments, conduct business transactions, participate in cultural exchange and often relax with a good book. The popularity of coffee shop had served as a mailing address, because many people were regulars. When you want to go to exchange news, share ideas and get advice, you go to a coffee shop. It has been that way for quite some time. Coffee shops had been places of learning; of making business deals; scientific, literary, political, philosophical, and economic discussions; and even the typical gossip. At the beginning of the nineteenth century nearly all coffee exported on the world market was produced by European colonies. Two-thirds came from French colonies. But despite the fact that the following century would witness what Eric Hobsbawm called â€Å"The Age of Empire† and Lance Davis termed â€Å"high imperialism†, colonialism would cease being important in coffee production. (Though colonies certainly continued to be vital to the production of tea and sugar. ) This occurred precisely at the same time that coffee consumption rose vertiginously in most European colonial powers. Coffee was treated differently than sugar and rubber in the nineteenth century Age of Empire because its low technological demands meant that an independent country richly endowed with the factors of production, Brazil, could begin producing on an unprecedented scale. Cheap fertile land and slave labor allowed coffee prices to plummet after 1820 and remain low until the last quarter of the century creating supply-induced demand. Brazil’s exports jumped 75 fold between independence in 1822 and 1899. World consumption grew more than 15 fold in the nineteenth century. Consumers were not very price conscious because they were long buffered from recognizing the price. If they drank in cafes, they were unaware of the type of coffee they were drinking. As the price of one sort rose, cafe owners often blended in cheaper substitute grades rather than raise their price. he same seems to have been true for grocers. Rather than risk losing their clientele, they competed on blends, not on price. They also sought to keep prices constant. Price rises were often not passed on to the consumer. Instead, cheaper blends were used or grocers reduced their profit margin. Moreover, as coffee sipping became customary and even habit-forming, it was transformed into a necessity for many. As a result, coffee in the twentieth century became price and income inelastic. Thus we are presented with the irony that the international coffee market at the turn of the twentieth century, one of the world’s largest commodity markets, was relatively price inelastic (within in a reasonably large range) at both the production and the consumption end, though profit-driven commercial and industrial intermediaries were extremely conscious of price. In other words, it was quite imperfect. The Philippine Coffee Company (PCC) says the first coffee tree was introduced in Lipa, Batangas, in 1740 by a Spanish Franciscan monk and soon spread to neighboring towns of Ibaan, Lemery, San Jose, Taal, and Tanauan. â€Å"Batangas owed much of its wealth to the coffee plantations in these areas and Lipa eventually became the coffee capital of the Philippines. We are one of the few countries that produces the four varieties of commercially viable coffee: Arabica, Liberica (Barako), Excelsa, and Robusta. This is attributed to the country’s climate and soil ranging from the lowlands of southern Luzon to the mountain ranges of the Cordillera and Mindanao. â€Å"In 1880, the Philippines was the fourth largest exporter of coffee beans, and when the coffee rust hit Brazil, Africa, and Java, it became the only source of coffee beans worldwide,† PCC says. Our glory days as one of the world’s coffee centers lasted until 1889 when coffee rust hit the Philippine shores, coupled with an insect infestation. Production plunged to 1/6th its original amount. By then, Brazil had regained its position as the world’s leading producer of coffee. A few of the surviving coffee seedlings were transferred from Batangas to Cavite, where they flourished. Our ranking fell because many of the coffee growing areas – like rice fields and salt beds of Las Pinas – were eaten by housing and commercial developments. Less area was allotted to coffee because farmers had shifted to other cash crops. Today’s Coffee is one of the world’s most popular beverages. Some claim it is the most widely consumed liquid in the world aside from water. Coffee’s success as a beverage undoubtedly owes both to the caffeine it harbors and to its sensory pleasure. Coffee lovers come to associate the energizing lift of the caffeine with the richness and aroma of the beverage that delivers it. In our culture, bookstores are also seen as social, intellectual and downright hip. Many bookstores are a place of community where people gather and know one another and talk. The atmosphere in a bookstore typically invites customers to relax and browse the shelves. The concept of a bookstore and coffee house is a good combination that will perfectly gives the bookworm persons and a coffee lover the opportunity to purchase their favorite titles and discover new books while relaxing and enjoying a cup of coffee. The Company is then formed because of the said conceptualized idea and inspiration. COMPANY PROFILE The name of the company will be CTB that stands for COFFEE, TABLE, BOOK. The company’s name was originated from the idea of coffee table book which means a hardcover book that is intended to sit on a coffee table or similar surface in an area where guests sit and are entertained, thus inspiring conversation or alleviating boredom. They tend to be oversized and of heavy construction, since there is no pressing need for portability. The Company CTB will be a combination of piles of books ready for reading and a comfortable cafe that provides place for bookworms to sip coffee and talk with their friends while enjoying their books. It is a modern type of library and a much more public place for reading with a twist for having a cafe in it. It is a very interesting place for a person who wants to meet new people who are also interested in reading, studying and exploring new things and ideas through books. The cafe is really just an addition to the whole idea. It gives new impression to reading. Reading with a cup of coffee or tea with you is a lot better than reading without anything to drink or eat. It’s a higher level of coming into a public place to look for interesting books and a cafe with it. TAGLINE â€Å"Cool your coffee and bring it closer to your heart and mind. † Our tagline represents our business in the most promising way. We decided to state it as cool your coffee, â€Å"cool† meaning call your coffee. Cool because we want it to be mind-teasing and catchy so that customers will notice the line and think. Call your coffee and order it in the CTB shop to relax while reading your favorite novels and bring it closer to your heart and mind. Customers will definitely bring it closer to their heart because the coffee goes to the heart and down to the veins of an individual. The heart and the mind as we all know, is really Like Coffee, Table, Books shop, customers will hold our business close to their hearts and mind, remembering every moment they’ve had with us. Every learning they will earn with what they have read, we are assuring them that they will treasure everything we have shared with them forever. LOCATION The CTB store is located in 1199 unit 5 ground flr. Lemon Square Building, Edsa, Munoz Quezon City with the size of 102. 50 square meters. There are adequate parking space and have reasonably priced per square meter. Rental payments as well additional payment will be stated within the leasing terms including the registration of utilities and amenities. BUSINESS DESCRIPTION VISION To become the foremost Coffee shop in the local and international industry providing the best products and high quality experience. MISSION. To create a unique, comfortable and relaxing environment while enjoying the best hot and cold coffee drinks at an affordable price making it perfect. GOALS AND OBJECTIVES †¢ To increase the frequency of customers’ visitations. †¢ To maintain positive sales growth and increase market share. †¢ Increase brand awareness †¢ To open new branches of stores nationwide every year. †¢ To ensure that equipments used for cold and hot coffee drinks are well-maintained and in good condition. †¢ Develop new products and innovate services yearly. †¢ Develop an increase in sales while achieving a status quo state and decrease in marketing expenses. †¢ To create a cozy and relaxing ambiance. †¢ To give seminars and trainings to employees and retain their Standard Operating Procedures. †¢ To improve promotional activities and advertisements quarterly †¢ To listen and implement feedbacks, suggestions and opinions of customers for the improvement and betterment of the business. COMPANY’S FORM OF ORGANIZATION The company CTB is a sole proprietor type of business because the owner’s primary purpose is to generate profit. A sole proprietorship is a business owned by a single individual. This sole owner is responsible for the entire business and accepts complete responsibility for the business’s liabilities, as well as its income. Unlike other legal structures, the sole proprietorship requires less paperwork and is subject to few business restrictions and regulations. ? Characteristics of Sole Proprietor Management and Control A sole proprietorship is operated by a single individual; thus, the sole proprietor has exclusive management and control of the business. Personal Liability A sole proprietor is personally liable for all obligations and debts of the business. Thus, the business assets and personal assets of the sole proprietor are subject to the risks of the business. Moreover, in California, if the owner is married, the martial community property is at risk and subject to attachment by creditors. If the business is conducted under a name which does not show the owner’s surname or implies the existence of additional owners, the owner is required to file a fictitious name certificate and publish a notice in the newspapers. Capitalization There are no rules governing capitalization of a sole proprietorship. Continuity of Existence The sole proprietorship continues as long as the sole proprietor desires to operate the business and is legally competent. If the business owner is adjudged legally incompetent, becomes incapacitated, or dies, the sole proprietorship ceases to exist. An owner may sell the business as he or she chooses. Taxation A sole proprietor is taxed on business income and may deduct allowable business expenses on his or her personal income tax return. ? Advantages of Sole Proprietor Easy formation: The formation of sole proprietorship business is very easy and simple. No legal formalities are involved for setting up the business excepting a license or permission in certain cases. The entrepreneur with initiative and certain amount of capital can set up such form of business. Direct motivation: The entrepreneur owns all and risks all. The entire profit goes to his pocket. This motivates the proprietor to put his heart and soul in the business to earn more profit. Thus, the direct relationship between effort and reward motivates the entrepreneur to manage the business more efficiently and effectively. Better control: The entrepreneur takes all decisions affecting the business. He chalks out the plan and executes the same. His eyes are on everything and everyone. There is no scope for laxity. This results in better control of the business and ultimately leads to efficiency. Promptness in decision-making: When the decision is to be taken by one person, it is sure to be quick. Thus, the entrepreneur as sole proprietor can arrive at quick decisions concerning the business by which he can take the advantage of any better opportunities. Secrecy: Each and every aspect of the business is looked after by the proprietor and the business secrets are known to him only. He has no legal obligation to publish his accounts. Thus, the maintenance of adequate secrecy leaves no scope to his competitors to be aware of the business secrets. Flexibility in operations: The sole proprietorship business is undertaken on a small scale. If any change is required in business operations, it is easy and quick to bring the changes. Scope for personal touch: There is scope for personal relationship with the entrepreneur and customers in sole proprietorship business. Since the scale of operations is small and the employees work under his direct supervision, the proprietor maintains a harmonious relationship with the employees. Similarly, the proprietor can know the tastes, likes and dislikes of the customers because of his personal rapport with the customers. Inexpensive formation and management: The cost of formation of a sole proprietorship is the minimum because no cost is involved in its formation excepting the license fee in certain cases. The management of the business is also inexpensive as no specialists are normally appointed in various functional areas of the business which is the added advantages. Free from Government control: Sole proprietorship is the least regulated form of business. Regulated laws are almost negligible in its formation, day-to-day operation and dissolution. Easy dissolution: Like that of formation, the dissolution of the sole proprietorship is also very easy. Since the proprietor is the supreme authority and no regulations are applicable for closure of the business he can dissolve his business any time he likes. Socially desirable: New and small entrepreneurs can take up business on small- scale basis. There will be no scope for concentration of wealth in few hands. Sole proprietorship continues its operation in almost each and every area of business activity and caters to the need of the society. Further, it provides ample opportunities for large-scale self-employment for rural and less skilled personnel. Thus, it is socially desirable. PRODUCTS AND SERVICES CTB will offer its customers the best tasting coffee beverages in the area. This will be achieved by using high-quality ingredients and strictly following preparation guidelines. The store layout, menu listings and marketing activities will be focused on maximizing the sales of higher margin espresso drinks. Along with the espresso drinks, brewed coffee, as well as some refreshment beverages will be sold in the coffee shop. CTB will also offer its clients, cookies, muffins, sandwiches and bread. On the other hand, the store offerings will be supplemented by small range of books, magazine and other references that customers can read while drinking coffee. PRODUCTS: COFFEE AND ESPRESSO Regular Coffee Americano Cappucino Macchiato *Caramel & Hazenut Caffe Latte Caffe Mocha ICED COFFEE Iced Americano Iced Cappucino Iced Macchiato *Caramel & Hazelnut Iced Latte Iced Mocha Latte NON COFFEE HOT DRINKS Hot Chocolate Hot Vanilla NON COFFEE FROZEN DRINKS Chocolate Mocha Vanilla Cookies and Cream Hazelnut BAKED GOODIES Sandwiches and Breads Muffins Cookies Croissants Donuts PRODUCT RESEARCH AND DEVELOPMENT The Product Research and Development Plan of CTB will provide a clear framework of challenging targets for the consumer over the next years. Strategic view of the needs and opportunities to achieve outcomes that meet the expectations of industry will be the key to the success of this plan. Within the next two years, the company was expected to branch out in different areas of Metro Manila and other provinces. As seasons change, CTB will be offering products that will enhance sales and satisfy its customers’ desires. During summer months, CTB will subsidize lower hot beverage sales with frozen coffee drinks, as well as soft drinks, and other cold beverages. CTB will also have special beverages during holiday seasons. The CTB will carry a variety of quality products that will enable to provide full service delivery to espresso stands and coffee houses that will be offered 1 year after the store was established. The company’s underlying philosophy in selecting products is to choose lines that will bring consistent quality, competitive prices, and product satisfaction to our customers. TARGET MARKET CHARACTERICTICS |CHARACTERISTICS |PRIMARY |SECONDARY | |LOCATION |Nearby school/offices and establishments |Nearby residents of District 1 and 2 of Quezon | | | |City | |AGE |16-35 |36-59 | |GENDER |Male and Female |Male and Female | |OCCUPATION |Students/ Company employees |Entrepreneurs | |STATUS |Middle Class |Upper Class | |TYPE OF BUSINESS ESTABLISHMENT |Schools/ Company offices |Commercial Buildings and Banks | SURVEY QUESTIONS 1. Age_________ Gender _________ Occupation _________ 2. How often do you visit a coffee shop within a month? o 1-2 o 3-4 o 5-6 o 7-more 3. How many cups of coffee do you consume in a day? | | |1 cup per day | |2-3 cups per day | |Greater than 3 cups per day (How many? ) | | | | | |4. What kind of coffee do you usually buy/order? | |Regular coffee | |Espresso | |Latte | |Iced Coffee | |Other____ (specify) | | | |5. Which snacks do you regular purchase? | |Donut | |Muffin | |Cookies | |Sandwiches | |Cake slices | |Pastries | |Other________(specify) | | | | | |6. How much do you spend in each month in coffee shop? | | | |Maximum 1000 | |Minimum 100 | |Average 350 | |Sum 1,400 | | | |7. What is the reason why do you want to go to a coffee shop? | |To release stress | |To study/read | |Social gathering | |Drinking habit | |Others_______(specify) | MARKET SIZE AND TRENDS Coffee is the drink of choice for many people across the world which is the reason why coffee shops are so popular. People love coffee, so many small business people capitalize on this by opening up coffee shops. Some coffee shops provide Internet access so that people can use their laptops while they enjoy their coffee. This is especially helpful for busy students on the go. The coffee shop trend continues because there is a huge demand for it. If you took a road trip across America, you would find coffee shops on just about every corner. While the biggest and most well-known chain is Starbucks, you will also see many mom-and-pop coffee shops or small coffee shop stands. Even gas stations sell coffee to truckers and other travelers on the road. Brazil has by far the most coffee drinkers worldwide, so you will certainly notice that the coffee shop trends are very popular in Brazil. Some people even say that they can smell the aroma of coffee in the air. Coffee with no sugar or added creamers has no calories, and coffee shops have come up with the trend of offering many coffee drinks and treats that are low-fat. Our generation grew up thinking of coffee as a morning pick-me-up and after dinner drink for adults only. The 18-24 year old group has a different view of coffee, thanks to the coffee shop culture. Where older generations gathered at the local soda shop, these kids made the local coffee shop their afternoon hangout. Starbucks and other local chains improved their coffees with flavors, sugar and many creams. This makes their coffee more appealing to the younger crowd. As those kids graduate from high school and move on to college, they’re finding that their love of coffee moves along with them. MARKETING STRATEGY CTB’s marketing strategy will be focused at getting new customers, retaining the existing customers, getting customers to spend more and come back more often. Establishing a loyal customer base is of a paramount importance since such customer core will not only generate most of the sales but also will provide favorable referrals. †¢ PRODUCT LINE. | | | | | |COFFEE |NON COFFEE HOT DRINKS |NON COFFEE FROZEN DRINKS |FOOD | |Iced Coffee |Hot Chocolate |Chocolate |Sandwiches and Breads | |Latte |Hot Vanilla |Mocha |Muffins | |Frap | |Vanilla |Cookies | |Espresso | |Cookies and Cream |Croissants | | | |Hazelnut |Donuts | †¢ POSITIONING The company will be positioned as a brand providing high quality products at reasonable prices for busy, mobile people whose time is already at a premium, but desires refreshing beverages in a welcoming space that fosters a warm, comfortable and professional environment. †¢ DISTRIBUTION CHANNEL Distribution channels move products and services from businesses to consumers and to other businesses. Given the importance of distribution channels along with the limited resources generally available to small businesses it is particularly important for entrepreneurs to make a careful assessment of their channel alternatives, because an effective channel of distribution strategy is also a major contributing factor for the success of any business entity to be established. Raw materials will be purchased from the suppliers and then delivered to the house of the sole proprietor for storage. The ingredients needed for the production of the final product are made available at the food stall processed into a final product to be served to the customers. The proposed business can offer and acquire sales directly from the market because it has the advantage of having the direct contact with the consumer. †¢ ADVERTISING AND PROMOTIONS We would adopt the following promotion strategies: o Loyalty Cards. o Coffee Feedback Cards o Refills only half the price o Coffee tasting event promotion o Seasonal product promotion o Meal-Focused Promotions o Provide Complementary Services and Products o Print Advertisements in different designated locations o Social Networking (engage fans in twitter, Facebook, Youtube and other photo sharing sites. ) MANAGEMENT PLAN Background and primary responsibilities of the management team In any business, employees have important roles in an organization towards achieving the business’s goal. The management aspect of COFFEE,TABLE,BOOK or CTB is composed of proposed techniques and strategies that will be used for the improvement of its employees. These can be done through proper hiring and training of workers. Every employee have their specific duties and responsibilities in building up a business. There will be a designated work and section for each of them in a period of time. The shuffling of assigned tasks are expected for the employees’ versatility and for them to be an effective, efficient and knowledgeable about their jobs. With proper utilization of its resources, it would be sure that the company will yield its expected return of income. The success of this project lies on the efficient and effective use of human resources in the following functions of management such as planning, organizing, directing and controlling. The top management of the business shall carry out its responsibilities by governing its employees and being responsible in taking in to actions the policies of the company. Also, they will be in charge of monitoring and supervising the trainees and former employees as well. It is very substantial to know the capacity and capability of the people working inside the organization and their manner of interrelationship with other employees as well as with the management. A manager will look after the employees and will assure that every employee are working and striving for the business standards. Overall, every person shall work effectively and contribute skills in order to achieve success of the organization. CTB Coffee,Table,Book [pic] by: Busita, Lorica R. Dionco, Criselda Marie A. Dumencel, Roshell B. Reyes, Jenny Lyn M. Rivera, Juvia Katte M.

Raynair Business Model Essay

This year, Air Scoop is publishing an updated report on Ryanair’s Business Model, with a new task in mind. Starting from what was built last year, the 2011 Ryanair report has been conceived with a double objective in mind: to provide readers with a brief, compelling, synthesis of Ryanair’s business model and highlight new elements and evolutions in Ryanair’s skies. In no way is that report intended as a replacement of the one published last year, rather as a complement that should provide anyone interested in the European low-cost industry with a wealth of information on the market’s most important company. Conceptually, the 2011 report was elaborated along two different axis of analysis. In a first part, the report starts by taking a look at Ryanair’s revenues and expenses. According to the company itself, if Ryanair has grown so fast, it is thanks to an efficient mix of ever increasing sources of income and ever wider cost-cutting measures in all services. For this reason, the 2011 report looks, item by item, at Ryanair’s cost-cutting, profit-maximising strategies. From the most discussed to the lesser known tactics, the goal is to show how Ryanair has managed and still manages to constantly extract increasing income from its passengers while maintaining rock-bottom prices, through a relatively complex fare system and a slew of ancillary services. The report also investigates Ryanair’s largely misunderstood relationship with its own assets and how the airline managed to practically neutralise costs usually associated with aircraft and human resources, even turning airports into direct sources of revenues. The second part of the report is dedicated to a more analytical approach of the airline’s structure, providing the reader with an analysis of what Air Scoop judges to be the three main strengths of the airline. Namely, Ryanair’s legal strategy, whose dominant feature is an extremely proactive stance towards anything even remotely menacing to the airline, deterring irate customers from engaging legal action and submerging European regulators with complaints. Second, and perhaps most important, is Ryanair’s financial structure itself, through which the airline has optimised every part of its business, taking advantage of varying legal and fiscal frameworks all around Europe. Third is the most visible, but also possibly the least understood, part of Ryanair’s package for success, its communication. The airline, mainly through its hyper-charismatic CEO, Michael O’Leary, has managed to be present in every form of media outlet almost daily. Whether it be in good or bad terms, Ryanair is being talked about, and gets into customers’ minds and on every newstand in Europe. The traditional pricing system means that â€Å"fundamentally, each flight must be paid for by exactly one fare, but a single fare may pay for more than one flight. Multiple fares may be combined to pay for all the flights in a journey. The airline industry uses the term fare component (FC) to refer to a fare and the flights it pays for (covers)†1. Fare components can be combined in six different geometric figures (ranging from direct trip to elaborate circle trip), any combination of one to four fare components qualifies as a â€Å"Priceable Unit† (PU). A ticket can be built from any number of priceable units to form a coherent sellable trip. Some more restrictions may apply such as rules indicating that there â€Å"must be a Saturday night between departure of first flight in first fare component of priceable unit and departure of first flight and last fare component†2. This results in an incredibly complex faring system in the traditional airline industry and low transparency for customers. Many low-cost carriers use a different pricing system. Because companies such as Ryanair rely on a point-to-point rather than a hub-and-spoke system, they cannot offer similarly connected flights. Ryanair has decided to turn this into an advantage and offer simply-priced â€Å"point A to point B† tickets, avoiding the hassle of elaborating complex ticket structures and allowing the company to deny any responsibility in a missed connection while having the opportunity to intensively utilise aircraft and crews.

Is Technology Destroying Our Life? Essay

Technology is a wonderful thing giving us almost instant access to the world’s information. It makes our life easier, and enables us to stay in touch with distant friends and family. But it’s not all great. From big stuff like cancer to small stuff like being distracted texting, technology is killing us slowly every day. Texting while driving or walking is a killer People hate talking to people on the phone, so they’ve taken to texting. The problem with texting You need to have your eye on your phone to make sure you get the message right. Fine when you’re sitting still, a disaster when you’re driving. From 2001 to 2007, 16,000 people died from texting while driving. Even out of the car, texting is a disaster. Emergency rooms were seeing over 1,000 visitors who were getting into accidents because they were distracted trying to walk and text. We sit around using computers at work Sitting all day long is terrible for you. It makes you fat and weak, and can actually increase the odds of you dying sooner than later. So, what’s that got to do with technology? Well, thanks to technology we’re sitting at work more and more using computers to get our jobs done. Cell phones are probably giving us cancer This is one that remains inconclusive and divisive. Researchers haven’t found a definitive link between cancer and cell phones, yet there is a body of evidence linking the two. If you have a cell phone constantly glued to your ear, there is at least some reason to be worried about a tumor forming. Just use a headset to play it safe. Facebook is fueling divorce, which can lead to depression Facebook is actually leading to divorce for married couples. Spouses can get jealous when they look at who is friends with who, or if they see flirtatious messages being sent. It drives a wedge in the marriage, which can end in divorce. Divorce can lead to depression, which can lead to suicide. Craigslist, if you’re not careful, can be very deadly Craigslist is an amazing service making it much easier for us to sell old crap with minimal hassle, or find a new apartment without a broker. However! If you’re not careful with how you approach Craigslist, you could get yourself in hot water. Take a look at Congressman Chris Lee, who used Craigslist to look for hook ups. It ruined his career (and probably his marriage too.) There are also more serious examples of danger from Craigslist like Philip Markoff, the so-called Craigslist killer. Cellphones on planes can clog up the radio signals There’s something about being on a plane that when the crew tells you to turn off your phone you can’t help but scoff and try to squeeze in reading a few more tweets, or checking email one last time. What’s the harm in it? Well, the FCC worries that a plane load of people doing just that can scramble radio signals and cause problems for the plane. People are losing their sleep thanks to TVs, cellphones, and other screens Staring at bright screens before you go to sleep can disrupt your sleep, says a Berkeley sleep specialist. The bright screens of an iPhone, iPad, or even TV, disrupt your body’s natural rhythms at night. If you don’t get enough sleep, your lifespan can be significantly shorter according to research from the University of Warwick. Electric cars are dangerous for the blind Electric cars and hybrids are silent, and as such, they are a threat for people that rely on hearing cars coming. Hybrid and electric car makers know that silent cars are a threat, and they’re considering adding noise makers to the car to alert the outside world. More efficient farming and shipping is making us fat Our instinct as human animals to eat fatty and sugary things — things that give us the most energy to store because throughout most of evolution we did have to go through stints of deprivation. In modern life, we still have the same tastes but we don’t need to anymore. Now, thanks to technological innovations in farming and shipping, fatty and sugary things are available everywhere—and super cheap. This is making us fat, and being fat is killing us (and costing us lots of money). Finally I hope to forget the technology a little bit and take care about each other more because our social life is going to die . I think if we stay like this we will lose our friends , maybe our family and our humanity.

Historical Film Movement Film Noir as the Forerunner of the Present- Essay

Historical Film Movement Film Noir as the Forerunner of the Present-day Crime and Action Movies - Essay Example He presented a different kind of suspense thriller and was the first to attract attention from French film critics. His films presented the audience the flaws of the characters. He created the first psychological thrillers, one of them was Psycho, released in the 1960s. Psycho is based on the story of a serial killer named Ed Gein who was featured in a novel by Robert Bloch (1998). The term ‘psycho’ refers to the psychological state of a criminal, or someone who has committed or is about to commit a crime without consciously knowing it. Movies based on serial killing have been popular, but in the 60s, there were a few serial killings, one of these was perpetrated by the notorious Ed Gein (also one of the inspirations for the character of Hannibal Lector). Hitchcock bought the rights to the novel for $9,000.00. We can see at the start of the movie the use of shadows and windows. Marion and Sam peer out of the window through the blinds. Some other props used are stuffed birds’ shadows as they loom over Marion as she eats, and the perpetrator of the killing – the ‘mother’ – is seen in only shadows. Mirrors are used, reflecting the character Marion as she packs, later her face in the policeman’s sunglasses, and her hands as she counts out the money. Janet Leigh’s character Marion Crane is an effectively realized character, one who shares similarities with Norman Bates. Both are on the run – she, literally, from her past, and Norman from the present and future – and both have secrets. Marion’s secret has to do with the contents of her purse which contains a stack of bills that belong to her boss. Norman’s secret concerns the contents of his house, a spooky old hilltop mansion overlooking the Bates Motel in which Norman’s long-dead mother continues to reside, barking orders and hurling insults at her wayward son. One of the memorable scenes of Psycho is the shower scene which became controversial during Hitchcock’s time, but for which earned him the reputation as the maker of valuable film noirs.

Climate Change essay Example | Topics and Well Written Essays - 1000 words

Climate Change - Essay Example The difference between the climate change that takes place over long geographical periods and the present climate change brought about by global warming is that whilst the former is a natural phenomenon, the latter is anthropogenic or man-made in origin. The earth’s temperature is the product of a ping-pong game between the sun and the earth. The sun constantly and continuously gives off energy in the form of sunlight and radiates it to the earth’s atmosphere. The solar energy that touches the earth’s atmosphere is either absorbed by some of the earth’s particles or transmitted. The heat that reaches the earth’s surface is then emitted back to the atmosphere as infrared radiation. However, not all of the infrared radiation successfully passes out of the earth’s atmosphere because some atmospheric components absorbs and therefore prevents infrared radiation from entirely leaving the atmosphere, The trapped heat is then eventually reradiates back to the earth’s surface (see Fig. 1). Such heat-trapping components are called greenhouse gases and the process of absorbing, trapping and reradiating infrared heat to the earth’s surface is called the greenhouse effect. The greenhouse ef fect is what sustains life on earth because without it earth would be more than 30Â °C colder than what it should be and therefore, inhabitable by humans, animals and plants. The present global warming is attributed to the more than usual amount of heat trapped and reradiated back by the greenhouses gases to the earth’s surfacea (Great Britain: Department for Environment, Food and Rural Affairs 2006 8; Ebbing & Gammon 210; Hardy 2003 3). There are two classifications of gases found in the earth’s atmosphere: the primary gases made up of nitrogen, oxygen and argon which make up 99% of the gases, and; the trace gases like carbon dioxide (CO2), methane (CH4), carbon monoxide (CO), nitrogen oxides (NOX),

Diabetes Melllitus Type II Research Paper Example | Topics and Well Written Essays - 1500 words

Diabetes Melllitus Type II - Research Paper Example The Indian physician Sushruta in 400 B.C. described the sweet taste of urine from individuals affected with a disease called ‘sugar’. Around 250 B.C., the name â€Å"diabetes† was first used, meaning in Greek â€Å"to siphon†, reflecting the marked polyuria and loss of water in diabetes. The complete term â€Å"diabetes mellitus† was coined in 1674 by Thomas Willis, personal physician to King Charles II. Gradually the latin word for honey, â€Å"mellitus† was added due to its link with sweet urine (Settley, 1996). Diabetes mellitus is a heterogeneous clinical disorder with two major classifications: primary and secondary. Secondary diabetes is a condition when hyperglycemia (diabetes) is due to the complications of another disease. As per the latest recommendations of American Diabetes Association (2010) diabetes should be classified into four classes viz. I. Type 1 diabetes: Previously known as insulin dependent diabetes mellitus (IDDM), since the patients require exogenous insulin for survival. Type I diabetes involves ÃŽ ²-cell destruction leading to absolute deficiency of insulin. According to ADA (2010), Type 1 diabetes could be described under two sub-headings – a) Immune-mediated - where the autoantibodies against ÃŽ ²-cells of pancreas destroy the islets of langerhans, b) Idiopathic diabetes – with no known cause of diabetes mostly seen in people of African or Asian ancestry. II. Type 2 diabetes: It represents 90-95% of all diabetes cases and presents with peripheral resistance to the effects of insulin or a defect in insulin processing/secretion. The disorder is also known as non-insulin dependent diabetes mellitus (NIDDM), because insulin is not required for treatment in most of cases. It manifests at a later age (>40 years) that acquires it the third name -- late or ‘adult-onset diabetes’ and has a slow and silent onset. NIDDM is more commonly found in obese (particularly trunkal obesity) individuals and is

Work shop activity .Words and Words formation Essay

Work shop activity .Words and Words formation - Essay Example For instance, some students find it tricky to retrieve single words especially nouns, adjectives, calendar dates, verbs and general numbers. For this reason, it is very difficult for them to respond comfortably to questions that require them to use facts in arguing their points out (Finch, 2000). This does not mean they lack information about the question but instead are not good at clearly distinguishing characters, places, numbers and other facts. In some cases commonly referred to as discourse retrieval contexts, students find it difficult to take part actively in discussions, which relate to some events or some experiences in life (Finegan et al, 1992). A lexeme is a language unit, which bears lexical meaning in that in whichever form they appear, they bear a common meaning. Lexeme derive its origin from language morphology because a lexeme word or phrase helps people understand a concept which links to that word even though they write and express it differently. Since a lexeme reduces a word, it makes it easy for people who have difficulties in word definition to get a basic meaning of such words. For instance, a word like water in simple terms is a noun. The same word can be a verb to mean the act of giving water to something for example plants. It makes it easy for a student to remember words and quickly fix them in their right context (Yule, 2010). Lexeme makes it easy for learners to understand and compare words. For instance, medical processing uses a series of scientific terms. Unless students are good at such terms, they cannot understand the medical products. The use of lexeme acts as a bridging factor since it reduces the differences of language representation (Schendi, 2003). Similarities that stem from perception have a hug role in learning especially during the early stages of language development in children because it enables them in grouping objects to a particular category thus supporting them in identifying the name

No topic Essay Example | Topics and Well Written Essays - 250 words - 14

No topic - Essay Example This ultimately leads to a decrease in water tables. As much as supply of water is constant, the water levels can be controlled in some ways. That is delivery and storage, watering farms, purification of sea water and let the mechanism of price to balance supply and demand. The most important way to solve the scarcity is to increase the price of water to be in line with the increased demand (Puthenkalam 34). The overall number of patients waiting for transplants currently is at 114, 650. Additionally, the number of patients waiting for kidney transplant is the highest. This high numbers are explained by the fact that creating a legal market for these transplants may lead to an upsurge of illegal markets handling these transplants (UNOS). Legalizing a transplant market would also increase instances of stolen organs as a result of innocent civilians getting drugged and mugged and their organs removed. Lastly, an organ market will make the rich be in charge of buying organs from the poor

Research proposal and outline Essay Example | Topics and Well Written Essays - 750 words

Research proposal and outline - Essay Example Her actions and physical features and traits are antithesis for the low regard accorded her and seems to be purposely taken cared of to spite her husband for his utter disregard for her existence. The unfair and unequal treatment for women during that time is an interesting topic given that the tragic outcome of the novel could be interpreted as a consequence of Curley’s wife needing to be acknowledged and respected as a productive member of society. Since she felt disregarded and neglected, she opted to find ways and means to solicit positive response from men through deliberately flirting with them, dressing provocatively, and seeking attention and acquaintances from men whose perceived status in society equal hers. The main research to be explored is the status of women in America in the 1930s. A wealth of secondary references could verify, support and validate the contentions of comparative similarities with those depicted by Curley’s wife in the novel. Various feminist movements, whose enlightenment on inequality issues which started in the 1920s could be researched as a theoretical framework to rationalize Curley’s wife’s actions. In this regard, possible sub-questions that can be further researched are: (1) what are the significant effects of oppression in women during the period under study? (2) What have women done to enforce rights and equality to fare on parallel grounds with men? (3) Have significant changes in women’s role brought more benefits to society in contemporary times? Some preliminary ideas about the types of sources one proposed to use to gather information would be from history books, journals and academic published reports written by historians and academicians. The electronic sources are replete with authoritative references that could support arguments and validate conclusions, as required. The

Foreign Trade and Exchange - International Business Essay

Foreign Trade and Exchange - International Business - Essay Example The international foreign trade and exchange has developed to constitute free trade policies, guided by reduction of tariffs and quotas in trade and exchange transactions (Justin 425). In other words, the contribution and evolution of the concepts of Mercantilism, Adam Smith, and Ricardo among others have shaped international business today. Apple, Inc. is primary competitive firm globally. It enjoys an absolute advantage in creating product quality and pricing policies that capture the interests of the market in both domestic and global contexts. This follows the idea that Apple manufactures its products at a competitive low production cost relative to rival firms in the industry. Apple’s comparative advantage emanates from its collaboration with other firms like Google in offering its products and services. In other words, Apple understands that it cannot be self-sufficient in business, thus collaborating with other firms in business terms. Comparative advantage in this regard is more important due to the complementarity it provides, through trade and exchange as opposed to being at an advantage that is based on operational costs off trade and exchange in the market (Justin

Substance Abuse Treatment Essay Example | Topics and Well Written Essays - 500 words

Substance Abuse Treatment - Essay Example Many of the counselors at GCASA revealed that they actually prefer to work with mandated clients because, even if they initially resent having to come to treatment, they eventually are more motivated to continue with treatment and get something positive from it. Dr. John Kelly, the lead investigator on the study mentioned above is quoted as saying, "Once in a therapeutic environment, mandated patients seem to reflect on their situation and accept the need for treatment. The findings suggest that people can learn from the 'teachable moment' offered by a judicial mandate, even though the initial motivation for treatment is external." Employees are a vital part of any business. It is better to offer assistance to employees with personal problemsthan to discipline or fire them. Recovering employees become productive and effective members of your Kelly, J.F.; Finney, J.W.; and Moos, R. Substance use disorder patients who are mandated to treatment: Characteristics, treatment process, and 1- and 5-year outcomes. Journal of Substance Abuse Treatment 28(3):213-223, 2005.

Genetically Modified Food Essay Example for Free

Genetically Modified Food Essay In 1973, scientists discovered something that has the potential to change the world we live in forever they discovered Genetic Modification. Genetic modification is exactly what it sounds like it is the modification of genes inside a living organism. This of course could be used on humans or animals but as soon as this discovery was made safety precautions were put into place to stop people using this new technology in the wrong way. The secret to genetic modification of genes lies in the plasmid. A plasmid is a ring of DNA inside bacteria and can be used to change the genetic message inside the bacteria. For example if you were to want to create insulin you would extract the insulin producing gene from the pancreas cell of a human and cut open the plasmid and insert it the gene. This new DNA created is called recombinant DNA. The bacteria would then go on to produce human insulin. Since this is the basis of how this technology works it can also be transferred to foods. Scientists are now looking how they can genetically modify food in the world to make it better and hardier than the food nature produces. Some foods have already been genetically modified and are being grown widely throughout the United States. Crops such as Soya, Cotton, Maize and Potatoes are already modified and sold throughout the country. Scientists have genetically modified these crops to make them resistant to herbicides (weed killers) and to create their own poison that kills pests that eat the crop. These highly advanced crops are more likely to produce food for harvesting than normal crops would. With this new genetically modified food it raises issues about just what can be done with it. Places such as Africa which have lots of drought may find that a crop could be developed that would be resistant to drought and could actually survive the harsh conditions and produce crops. A crop that is being developed right now is rice that contains vitamin A that can easily be absorbed into the body. Since poorer countries have a serious lack of vitamin A this new crop would help them to gain the nutrients they need to be healthy. These two crops could be a huge help to world hunger. More food could be produced and the food would make the people that eat it healthier. However, there cant only be good news about GM food or else it would be put into production throughout the world. Many are concerned that GM crops could have a huge impact on the environment. Many say scientists are playing around with something that they dont understand and could damage wildlife and the environment. Concerns of how the GM crops would affect wildlife are a big concern. It has been found out that the crops that have built in poisons to kill pests could also kill other animals such as butterflies. This could have an impact on the food web that the butterfly is apart of. There are also worries of a superweed being created accidentally by the gene that makes the crop resistant to herbicides. People are worried that this gene could get into a weed and make it resistant to the chemicals that are used to kill it. This would make it very difficult to rid crops of weeds and they could have the potential of spreading across the world. Other worries of GM crops include cross-pollination of other plants with these super crops. Farmers that grow organic food may find that some pollen from a GM Crop has pollinated with their crop and made a new hybrid plant. Overall it would appear that there are both positive and negative aspects to the genetic modification of crops. On the positive side there is the possibility that world hunger could be helped by these new crops. However there are the negative aspects that GM crops could have an irreversible impact on the world and environment in which we live in. If further tests were conducted on how GM crops would affect the world in which we and many other species live, maybe there could be some agreement on how we should go about using this new technology that has been discovered. Eventually genetic modification may be taken to new heights by genetically modifying humans and animals to be stronger and smarter. But hopefully this will not be so because then scientists would really be messing around with something that they are not sure about. This could also have huge impacts on the world.

Business Management and Change at Billabong (BB)

Business Management and Change at Billabong (BB) HSC Topic One: Business Management and Change Case Study Billabong Management Theory Behavioural Management Theory Creative thinking and innovation are of greater importance than ruthless efficiency. Managers see their roles primarily as motivating staff communicating the companys vision to customers stakeholders. Workers overcame problems and gave input into the way Billabong was run. Primarily to do with business culture and lack of morale caused by inertia of managers their resistance to change BILLABONG Sources of Change * External influences Economic factors: Negative: level of unemployment and growth/interest rates means less people can afford BBs products Rising incomes in East Asia and South America have helped create new markets Social factors: Changing consumer tastes Increasing tastes in sports such as skateboarding and surfing BMX now included at Olympics increases recognition of sport and clothing Political factors: Protectionism and limiting of imports through tariffs has seen BBs product strengthened in the domestic market Gov emphasising and pushing Aus exports, BB has seen improved overseas sales. Geographic: Pollution of beaches discourages people from surfing Influences what products BB have to release Snow gear in countries like Switzerland and surf gear in markets like Hawaii Internal influences  · E-Commerce Positive: Simplifying logistical and organisational difficulties +: Monitoring and tracking sales à  control Internet website greater relationship/interaction with customers  · New Procedures Private à   Public Comply with legal regulations meant à  financial record systems for annual financial report Tighter control over finances so as to increase return for investors  · Business Culture Management team changed in 1998 when Matthew Perrin and Gary Pemberton bought 49% of BB Now comprised of more professional managers with greater business knowledge and procedures than the original surf enthusiasts who established the business Structural responses to change Outsourcing Production to SE Asia and China Response to economic and financial influences Allows company to focus more on design and marketing Lowers costs to maintain competitive advantage in price-sensitive markets Strategic Alliances Cooperated with Channel V Billabong Music Bus Tour Both had similar target markets Increased brand recognition and awareness Reasons for resistance to change Financial Costs Developing new products such as skateboards and sunglasses requires money Acquiring smaller businesses, eg. Honolua Surf Company cost around $20billion Inertia of owners International expansion brings some risk from the financial backers/owners and therefore saw resistance from shareholders Managing change effectively Identifying need for change BB gained an edge over competitors by being one of the first businesses to expand overseas in the early 1980s Diversifying into skateboarding and accessories increased market share Creating culture of change New management team in 1998 acted as ‘change agents achieved growth by constantly observing and pursuing new opportunities Change Models (force field analysis) Driving Forces Restraining Forces à  revenue New opportunities for staff Year round demand (seasons) Costs of production Lack of new designers Need to hire new managers for new departments Change and Social Responsibility Ecological Sustainability Surfrider Foundation Conservation and regeneration of beaches and foreshores Quality of life Encourages team work and a relaxed atmosphere both in the office and in retail stores BB has a strict ‘no child labour policy and regularly inspects overseas production facilities Cultural Diversity Encourages communication between domestic and international stores/offices Employees are encouraged to transfer between international offices to gain new experiences The Nature of Management  · Management Roles -An interpersonal role is one in which the manager deals with people. Proactive- incorporates dynamic action and forward planning to achieve particular objectives -An informational gathers information within the business and supplys it outside the business -A decision-making role involves solving problems and making choices  · Skills of Management -People Skills -Strategic thinking -Vision -Self-Managing -Teamwork Ethical behaviour Responsibilities to stakeholders include: manage change social justice ecological sustainability compliance with the law codes of practice Understanding Business Organisations with Reference to Management theories  · Contingency Theory  · Classical-Scientific Planning, Organising, Controlling Division of labour, chain of command, autocratic leadership style meaning the manager tends to make all the decisions in the business.  · Behavioural ability to understand and work with people from a variety of backgrounds and different expectations Leading, Motivation, Communication Flatter organisational structure democratic leadership style where managers consult employees to ask suggestions and take them into account when decision making.  · Political encourages the formation of coalitions to promote different points of view. Power and Influence within a business can have both a positive and negative effect. It can be sued to intimidate (negative) or empower others (positive). Legitimate power due to status or position of the person in the firm e.g management Expert power due to a result of a persons skills and expertise Referent power from a persons individual characteristics (personality and charisma) Reward Power to the rewards or compensation a manager distributes Coercive power controls individuals by the actions or words of the manager Negotiating and Bargaining, Stakeholder views, Coalitions Managing Change  · Nature and Sources of Change in Business External Changing Nature of Markets, Economic Influences, financial, geographic, social, legal, political, technological Internal Effects of decelerating technological change, e-commerce, new systems and procedures, new business cultures Structural Response to Change -Outsourcing Flat Structure Strategic alliances Networks  · Reasons for Resistance to Change Financial Costs Inertia of managers and owners Cultural incompatibility in mergers and takeovers Staffing Considerations de-skilling, acquiring new sources, loss of career prospects and opportunities. * Managing Change Effectively Identifying need for change- SWOT anaysis and balance sheets Setting Achievable goals mission statements and company goal Culture of Change Change Models Force-Field Analysis Unfreeze/Change/Refreeze Change and Social Responsibility Social Responsibility is the awareness of a businesss management of the social, environmental and human consequences of its actions. Customers eventually find out which businesses are acting responsibly and which are not. Ecological Sustainability Quality of Working life Technology E-Commerce Globalisation and Managing Cultural Diversity HSC Topic Two Financial Planning The Role of Financial Planning * Strategic role of Financial Planning strategic plan Organisational goals and objectives Managing financial resources * Objectives of Financial management Liquidity -pay debts in the short term (less that 12 months) Profitability ability to maximise profit Efficiency -manage its assets to maximise profits with the lowest possible level of assets Growth increase its size in the long term Return on capital -profit returned to owners or stakeholders as a % of their contribution * The planning Cycle Addressing present financial position e.g revenue, p l statements, budgets Determining financial elements of the business plan Developing budgets Cash Flows Financial reports Maintaining record systems Planning financial controls Financial Markets Relevant to business financial needs * Major Participants in Financial markets Banks Financial companies -provide loans to individuals and businesses e.g personal and secured Insurance companies -loans to the corporate sector through insurance premiums Merchant bks (investment bks) -services such as borrowing and lending to the business sector. Superannuation/Mutual funds provide funds to the corporate sector through the investment of funds received from superannuation contributions The Reserve bank of Australia (Government) -acts as a banker and financial agent for the federal government * The Role of the Australian Stock Exchange (ASX) as a primary Market The ASX is the major financial exchange in the country. It comprises the largest primary and secondary markets for companies and individuals wishing to create and exchanges financial assets in the economy * Influences on Financial Markets domestic markets e.g change in inflation, demands for funding, changes in government policies. Companies can be positively and negatively affected. Overseas influences such as world events, foreign exchange rates, tax regulation for foreign operations * Trends in Financial Markets Technology has allowed markets to become more competitive and grow allowing financial transactions all the time. Globalisation will also give overseas investors access to Australian companies and increase opportunities for Australian investors and international markets. Management of Funds * Sources of Funds Internal Owners Equity Retained Profits External Short-term borrowing Bank Overdraft allows a business to overdraw their account to an agreed limit Bank Bills Long Term Borrowing Mortgage Debentures -The company repays the amount of the debenture by buying back the debenture. Finance companies raise funds through debenture issues to the public. Leasing involves the payment of money for the use of equipment that is owned by another party. Factoring is the selling of accounts receivable for a discounted price to a finance of factoring company. Venture Capital is funds supplied by investors to either a new organisation or to an already established business ready to grow or diversify. Grants are provided by the government for businesses to develop and promote international competitiveness. Grants often enable an organisation to become competitive in the global environment e.g exporting organisations. * Comparison of debt to equity financing Debt finance refers to short and long term borrowing from external sources of an organisation Equity Financing refers to the internal sources of finance in the organisation Gearing/Leverage is the proportion of debt to equity which is used to finance the activities of a business Using Financial Information * The Accounting Framework Financial Statements Revenue Statements shows the revenue earned and expenses incurred over the accounting period with the resultant profit or loss. Revenue statements show operating revenue earned from the main functions of the business e.g sales of inventories and the non-operating revenue earned from operations such as rent and commission. It also shows operating expenses such as rent, advertising, insurance. Balance Sheets represent the assets and liabilities at a particular point in time expressed in money terms and calculates the net worth of the business. The balance sheet shows the level of current and non-current assets and liabilities including investments and owners equity. Balance sheets indicate whether it has enough assets to cover debt interest and money borrowed that can be paid assets used to maximise profits if owners are making a good return on their investment * The accounting Equation and Relationships (A) Assets = (L) Liabilities + (OE) Owners Equity The accounting equation forms the basis of the accounting process which shows the relationship between assets, liabilities and owners equity. The accounting equation shows that the assets of the business may be financed by either the owners or by parties external to the business. COGS = inventory + purchases closing stock * Comparative Ratio Analysis By comparing ratios of a firm over time reveals trends and indicate directions for the future. Comparisons with other businesses and industry ratios is often used although can be inaccurate due to differences in companies and industries. Businesses often compare ratios against common standards such as statistics from the ABS. * Limitations for Financial Reports Historic cost accounting states that values are stated at the cost incurred at the time of purchase or acquisition, meaning financial statements will be a mixture of different year figures. Historic cost has been used for a long time although may become inaccurate in times of inflation. Value of Intangibles licences, trademarks, brand names and goodwill. Effective Working Capital (Liquidity) Management * The Working Capital Ratio Working Capital Ratio = Current Assets over Current Liabilities (2:1 ACCEPTABLE ALTHOUGH VARIES) The Working capital ratio shows if current assets can cover current liabilities. * Control of Current Assets Cash Balances are generally kept at a minimum and hold marketable securities as reserves of liquidity. Receivables is important in terms of management of working capital. The quicker the debtors pay, the better the firms cash position. Inventories make up a significant account of current assets and their levels must be carefully monitored so that excess or insufficient levels of stock do not occur. * Control of Current Liabilities Payables must be paid by their due dates due to avoid any extra cash charges imposed for late payment and to ensure that trade credit will be extended to the business in the future. Loans management of loans is important for establishment interest rates and ongoing charges must be investigated and monitored to minimise costs. Overdrafts policies should be used to manage bank overdrafts and monitor budgets on a daily or weekly basis so that cash supplies can be controlled. * Strategies for Managing Working Capital Leasing Factoring Sale and Lease back is the selling of an owned asset to a lesser and leasing the asset back through fixed payments for a specified number of years. Effective Financial Planning * Effective Cash Flow Management The activities of a business are divided into three categories as a statement of cash flows 1. Operating Activities e.g inflow cash and credit, outflow payments to employees 2. Investing Activities -e.g selling of old motorbike, purchasing new property 3. Financing activities- e.g inflow selling of shares, outflow repayment of debt. * Management Strategies distributing payments through out a month or year or different period so that cash shortfalls do not occur payments and bad debt of accounts by debtors can cause shortfalls of cash for businesses at important times. discounts for early payments * Effective profitability Management Cost Control Fixed Costs e.g insurance and salaries Variable costs change with the level of activity within a business e.g materials and labour used in the production of a product e.g fixing a roof. Cost Centres are particular areas, departments or sections of a business to which costs can be directly attributed. Direct costs are those allocated from a particular product, activity, department or region e.g depreciation of equipment used solely in the production of one good. Indirect costs come from shared projects, activities, departments or regions. Staff should be motivated to minimise expenses where possible as savings can be substantial if people take a close look at costs and eliminate waste and unnecessary spending. * Revenue Controls Sales objectives must be at a level of sales that will cover costs (fixed and variable) and result in profit. Changes to the sales mix can affect revenue. Research should be made to identify the effects of sales mix changes before implantation. Pricing Policy affects revenue and therefore impacts on working capital. To attract buyers while underpricing may bring high sales but still result in cash shortfalls. Ethical and Legal Aspects of Financial Management * Audited Accounts An audit is an independent check of the accuracy of financial records and accounting procedures. Types of Audits- 1. Internal conducted internally by employees 2. Management used to review the firms strategic plans and determine if changes need to be made. 3. External required by corporate law to ensure it complies with Australian auditing standards. * Australian Securities and Investments Commission (ASIC) ASIC enforces and administers laws and protects consumers in the areas of investment, life, insurance, super and Australian banking. ASIC sets out to reduce fraud and unfair practices in financial markets and products. ASIC ensures that companies adhere to the law. Collects information about companies and makes it accessible to the public. * Corporate Raiders and Asset Stripping Asset Stripping describes the practice of organisations that identify and sell off for a profit, assets of a company, especially one that has been acquired in a recent takeover. Entities that take over other companies and sell off the assets are known as corporate raiders. HSC Topic 3 Marketing Case Study Types of Markets Resource BHP Billiton Industrial Painter Intermediate Gloria Jeans selling cakes Mass IBM Computers Niche ‘Mountain Bike Magazine Developing Marketing Strategies Product and Service Positioning * Qantas was under competitive pressure from Virgin Blue in the leisure market * Qantas wanted to maintain its higher positioned government and business segments * Expanded to a subsidiary Jetstar who were positioned as a value-for-money product Price including pricing methods Price Points * Jetstar International * Base price for seat, Charge $30 for meal, $7 for blanket and amenity kit and $12 for entertainment kit Promotion Advertising * Dell Computers focus much of their advertising to print media * Use inserts/pamphlets/brochures in magazines, typically in the technology liftout section of the newspaper, where their target market is most likely to be reading Place Distribution * Dell distribute products directly, with no intermediaries * Exclusive distribution (no stores), Intensive (internet) * Distribution system is e-commerce Ethical and Legal Aspects Role of Consumer Laws in dealing with Deceptive and Misleading Advertising * Gillette (Duracell) VS Eveready * TV advertisement claims Duracell lasts up to four times longer than ordinary batteries * Eveready claimed the ad infringed the TPA * Independent tests showed the Duracell batteries never last 4x longer * Federal Court ruled Duracell breached the TPA in the areas of misleading and deceptive conduct and false representations about the quality and benefits of goods The Nature and Role of Markets and Marketing Marketing is a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers. * Types of Markets Resource markets e.g mining, agriculture, forestry and machinery. Industrial Markets purchase products to use in the production of other products e.g buying flour to make bread Intermediate markets (resellers) consist of wholesalers and retailers who purchase finished products and resell them to make profit Consumer Markets e.g cars, clothing, food Mass Market is when the seller mass produces, mass distributes and mass promotes one product to all buyers Niche Markets are micro markets made for buyers who have specific needs or lifestyles * Production Production Orientation 1820s 1920s When a business concentrates on making as many possible goods at the lowest price possible Sales Approach 1020s 1060s When a business concentrates on selling techniques to attract customers Marketing Approach 1060s 1980s When a business collects information on consumer trends to sell its products * The Marketing Concept Consumer Orientation when a business concentrates on maximising customer satisfaction to sell its products Relationship Marketing the focus on encouraging repeat purchases and loyalty to the business by managing customer relations at the time of and after the initial purchase. Elements of a Marketing Plan * Establishing Market Objectives * Identifying Target Market Total Market Approach one type of product with little or no variation aimed at everyone through one distribution system. Market Segmentation approach the market is subdivided into groups of people who share certain characteristics. * Developing Marketing Strategies (examining elements of the 4 Ps) * Implementation, Monitoring and Controlling Financial Forecasting measures the sales potential and revenue forecasts (benefits) for strategies and compares these with anticipated costs. Comparing actual and planned results 1. Sales analysis comparing of actual sales with forecast sales to determine the effectiveness of the marketing strategy 2. Market share analysis/Ratios by comparing competitions market share to their own this can reveal changes in total sales (increase or decrease) 3. Marketing Cost Analysis marketer breaks down the total marketing cost into specific marketing activities to access the effectiveness of each activity. Market Research Process Market research is the process of systematically collecting, recording and analysing information concerning a specific marketing problem. The three steps of the market research process are; 1. Determining information needs 2. Collecting data from primary and secondary sources 3. Data analysis and interpretation -the data that represents average, typical or deviations from typical patterns. The data must be then displayed in way which statistics and figures can be conducted e.g spreadsheets Customer and Buyer Behaviour Customers are classified into two categories: Consumer the process of purchasing goods and services for personal household use. Organisational the purchase of goods and services by producers, resellers and government. Types of Customers Household Personal personal and household spending plays a dominant role within the economy as it contributes to the level of economic activity which affects business profits, unemployment levels, interest rates levels and rate of inflation. The Firms market consists of businesses that purchase goods and services for further processing or for use in their production process. Educational institutes Government Customers Governments spend billions of dollars each year for a wide variety of goods and services ranging from battleships to paperclips. All purchases of the government spend public funds to buy products, the government is accountable to the public, requiring a much more formalised set of buying procedures where firms submit quotes to supply a particular good or service and the lowest bid is generally accepted. * The Buying Process The buying process involves 5 common steps: Recognise the problem need or want requiring satisfaction Search for info brands, product characteristics, warranty, price etc Evaluate alternatives cost and benefit analysis Purchase Evaluate after purchase stability of product, satisfaction gained or dissatisfaction may occur. * Factors influencing Customer Choice Psychological influences e.g perception, motive, attitude and personality Socio-cultural influences e.g family, friends, social class, culture and subculture. Economic Influences -A boom is a period of low employment and rising income. Contraction is a period of slowly rising unemployment with incomes stabilising. Recession sees unemployment reach high levels and incomes fall dramatically. Expansion means unemployment levels start to fall slowly and incomes begin to rise. Government Influences government will put into place policies that expand or contract the level of economic activity. These policies directly or indirectly influence business activity and customers spending habits and such will influence the marketing plan. Developing Market Strategies * Pricing Strategies Price Skimming charging the highest price possible for innovative products Pricing Penetration charges to lowest price possible for a product or service to achieve large market share Loss-leader selling a product below its cost price to attract customers Price Lining a limited number of key prices for selected product lines e.g one line of watches for $35 and a more expensive line at $55 * Pricing Methods Cost-plus margin the total cost of production then adds on amount for profit (mark-up) Market set prices according to the level of supply and demand, when demand is high prices are high Competition based a business chooses a price based on competition, either below, equal to or above * Marketing segmentation and product Mass marketing or a total marketing approach This includes basic food items, water, gas, electricity etc. Concentrated Market Approach -By using the concentrated market approach the business is able to analyse its customer base more closely and design strategies to satisfy this select groups needs, and develop particular products based on customer feedback. Product Differentiation is the process of developing and promoting differences between the businesses products and those of its competitors. e.g jeans with designer labels and washing detergent with brightener additives * Place/Distribution Channels of Distribution or marketing channels are routes taken to get the product from the factory to the customer. The process usually involves a number of intermediaries such as wholesalers, brokers, agents or retailers. To choose the channel of distribution the location is the main contributor of the business market or market coverage (number of outlets a firm chooses for it product). There are three ways a business can cover a market Intensive distribution when a business saturates the market with their product e.g milk, lollies and newspapers Selective Distribution businesses use a moderate proportion of possible outlets where customers are prepared to travel e.g clothing, furniture Exclusive Distribution only one retail, outlet in a large geographical area for exclusive and expensive products. Physical Distribution Transport Warehousing involves receiving, storing and dispatching goods. Inventory controlled through a system that maintains quantities and varieties of products appropriate for the target market.  · Effects on Distribution 1. Technology 2. Local Government Approving new development applications and alteration to existing premises Fire regulations Determining land zoning and the purpose for which a building and land can be used Parking regulations Health regulations Size, shape and location of business signs Ethical and legal Aspects Environmentally responsible products Materialism an individuals desire to constantly acquire possessions Impact of retail development -intensely competitive environment may result in some retailers using questionable marketing practices Sugging Selling Under Guise of a survey, Role of Consumer Law Deceptive and misleading Price- Discrimination Implied Conditions or terms Merchandise quality meaning that the product is of a standard a reasonable person would expect for the price Fitness of purpose meaning that the product is suitable for the purpose for which is being sold. That is, it will perform as the instructions or advertisement implies Warranties Resale Price Maintenance Legislations to respond to ethical and legal aspects of marketing: The Trade Practice Act 1974 is one of the most important pieces of legislation in Australia and has two purposes: 1. To protect consumers from misleading and deceptive conduct 2. Restrictive trade practices to restrict competition as well as ensuring that a number of businesses are operation at any one time in the same market, to avoid the problem of monopolistic power. Fair Trade Act (FTA) is a mirrors legislation that covers sole traders and partnership as well as companies Implied conditions in both Acts: Merchantable quality worth the money Fit for purpose does its jobs. HSC Topic Four: Employment Relations Case Study Managing the ER function Line Management * ALDI Supermarkets * Individual store managers are expected to solve all instore problems there is no ‘area manager or specialist ER department Key influences on ER Social Inf Business Management and Change at Billabong (BB) Business Management and Change at Billabong (BB) HSC Topic One: Business Management and Change Case Study Billabong Management Theory Behavioural Management Theory Creative thinking and innovation are of greater importance than ruthless efficiency. Managers see their roles primarily as motivating staff communicating the companys vision to customers stakeholders. Workers overcame problems and gave input into the way Billabong was run. Primarily to do with business culture and lack of morale caused by inertia of managers their resistance to change BILLABONG Sources of Change * External influences Economic factors: Negative: level of unemployment and growth/interest rates means less people can afford BBs products Rising incomes in East Asia and South America have helped create new markets Social factors: Changing consumer tastes Increasing tastes in sports such as skateboarding and surfing BMX now included at Olympics increases recognition of sport and clothing Political factors: Protectionism and limiting of imports through tariffs has seen BBs product strengthened in the domestic market Gov emphasising and pushing Aus exports, BB has seen improved overseas sales. Geographic: Pollution of beaches discourages people from surfing Influences what products BB have to release Snow gear in countries like Switzerland and surf gear in markets like Hawaii Internal influences  · E-Commerce Positive: Simplifying logistical and organisational difficulties +: Monitoring and tracking sales à  control Internet website greater relationship/interaction with customers  · New Procedures Private à   Public Comply with legal regulations meant à  financial record systems for annual financial report Tighter control over finances so as to increase return for investors  · Business Culture Management team changed in 1998 when Matthew Perrin and Gary Pemberton bought 49% of BB Now comprised of more professional managers with greater business knowledge and procedures than the original surf enthusiasts who established the business Structural responses to change Outsourcing Production to SE Asia and China Response to economic and financial influences Allows company to focus more on design and marketing Lowers costs to maintain competitive advantage in price-sensitive markets Strategic Alliances Cooperated with Channel V Billabong Music Bus Tour Both had similar target markets Increased brand recognition and awareness Reasons for resistance to change Financial Costs Developing new products such as skateboards and sunglasses requires money Acquiring smaller businesses, eg. Honolua Surf Company cost around $20billion Inertia of owners International expansion brings some risk from the financial backers/owners and therefore saw resistance from shareholders Managing change effectively Identifying need for change BB gained an edge over competitors by being one of the first businesses to expand overseas in the early 1980s Diversifying into skateboarding and accessories increased market share Creating culture of change New management team in 1998 acted as ‘change agents achieved growth by constantly observing and pursuing new opportunities Change Models (force field analysis) Driving Forces Restraining Forces à  revenue New opportunities for staff Year round demand (seasons) Costs of production Lack of new designers Need to hire new managers for new departments Change and Social Responsibility Ecological Sustainability Surfrider Foundation Conservation and regeneration of beaches and foreshores Quality of life Encourages team work and a relaxed atmosphere both in the office and in retail stores BB has a strict ‘no child labour policy and regularly inspects overseas production facilities Cultural Diversity Encourages communication between domestic and international stores/offices Employees are encouraged to transfer between international offices to gain new experiences The Nature of Management  · Management Roles -An interpersonal role is one in which the manager deals with people. Proactive- incorporates dynamic action and forward planning to achieve particular objectives -An informational gathers information within the business and supplys it outside the business -A decision-making role involves solving problems and making choices  · Skills of Management -People Skills -Strategic thinking -Vision -Self-Managing -Teamwork Ethical behaviour Responsibilities to stakeholders include: manage change social justice ecological sustainability compliance with the law codes of practice Understanding Business Organisations with Reference to Management theories  · Contingency Theory  · Classical-Scientific Planning, Organising, Controlling Division of labour, chain of command, autocratic leadership style meaning the manager tends to make all the decisions in the business.  · Behavioural ability to understand and work with people from a variety of backgrounds and different expectations Leading, Motivation, Communication Flatter organisational structure democratic leadership style where managers consult employees to ask suggestions and take them into account when decision making.  · Political encourages the formation of coalitions to promote different points of view. Power and Influence within a business can have both a positive and negative effect. It can be sued to intimidate (negative) or empower others (positive). Legitimate power due to status or position of the person in the firm e.g management Expert power due to a result of a persons skills and expertise Referent power from a persons individual characteristics (personality and charisma) Reward Power to the rewards or compensation a manager distributes Coercive power controls individuals by the actions or words of the manager Negotiating and Bargaining, Stakeholder views, Coalitions Managing Change  · Nature and Sources of Change in Business External Changing Nature of Markets, Economic Influences, financial, geographic, social, legal, political, technological Internal Effects of decelerating technological change, e-commerce, new systems and procedures, new business cultures Structural Response to Change -Outsourcing Flat Structure Strategic alliances Networks  · Reasons for Resistance to Change Financial Costs Inertia of managers and owners Cultural incompatibility in mergers and takeovers Staffing Considerations de-skilling, acquiring new sources, loss of career prospects and opportunities. * Managing Change Effectively Identifying need for change- SWOT anaysis and balance sheets Setting Achievable goals mission statements and company goal Culture of Change Change Models Force-Field Analysis Unfreeze/Change/Refreeze Change and Social Responsibility Social Responsibility is the awareness of a businesss management of the social, environmental and human consequences of its actions. Customers eventually find out which businesses are acting responsibly and which are not. Ecological Sustainability Quality of Working life Technology E-Commerce Globalisation and Managing Cultural Diversity HSC Topic Two Financial Planning The Role of Financial Planning * Strategic role of Financial Planning strategic plan Organisational goals and objectives Managing financial resources * Objectives of Financial management Liquidity -pay debts in the short term (less that 12 months) Profitability ability to maximise profit Efficiency -manage its assets to maximise profits with the lowest possible level of assets Growth increase its size in the long term Return on capital -profit returned to owners or stakeholders as a % of their contribution * The planning Cycle Addressing present financial position e.g revenue, p l statements, budgets Determining financial elements of the business plan Developing budgets Cash Flows Financial reports Maintaining record systems Planning financial controls Financial Markets Relevant to business financial needs * Major Participants in Financial markets Banks Financial companies -provide loans to individuals and businesses e.g personal and secured Insurance companies -loans to the corporate sector through insurance premiums Merchant bks (investment bks) -services such as borrowing and lending to the business sector. Superannuation/Mutual funds provide funds to the corporate sector through the investment of funds received from superannuation contributions The Reserve bank of Australia (Government) -acts as a banker and financial agent for the federal government * The Role of the Australian Stock Exchange (ASX) as a primary Market The ASX is the major financial exchange in the country. It comprises the largest primary and secondary markets for companies and individuals wishing to create and exchanges financial assets in the economy * Influences on Financial Markets domestic markets e.g change in inflation, demands for funding, changes in government policies. Companies can be positively and negatively affected. Overseas influences such as world events, foreign exchange rates, tax regulation for foreign operations * Trends in Financial Markets Technology has allowed markets to become more competitive and grow allowing financial transactions all the time. Globalisation will also give overseas investors access to Australian companies and increase opportunities for Australian investors and international markets. Management of Funds * Sources of Funds Internal Owners Equity Retained Profits External Short-term borrowing Bank Overdraft allows a business to overdraw their account to an agreed limit Bank Bills Long Term Borrowing Mortgage Debentures -The company repays the amount of the debenture by buying back the debenture. Finance companies raise funds through debenture issues to the public. Leasing involves the payment of money for the use of equipment that is owned by another party. Factoring is the selling of accounts receivable for a discounted price to a finance of factoring company. Venture Capital is funds supplied by investors to either a new organisation or to an already established business ready to grow or diversify. Grants are provided by the government for businesses to develop and promote international competitiveness. Grants often enable an organisation to become competitive in the global environment e.g exporting organisations. * Comparison of debt to equity financing Debt finance refers to short and long term borrowing from external sources of an organisation Equity Financing refers to the internal sources of finance in the organisation Gearing/Leverage is the proportion of debt to equity which is used to finance the activities of a business Using Financial Information * The Accounting Framework Financial Statements Revenue Statements shows the revenue earned and expenses incurred over the accounting period with the resultant profit or loss. Revenue statements show operating revenue earned from the main functions of the business e.g sales of inventories and the non-operating revenue earned from operations such as rent and commission. It also shows operating expenses such as rent, advertising, insurance. Balance Sheets represent the assets and liabilities at a particular point in time expressed in money terms and calculates the net worth of the business. The balance sheet shows the level of current and non-current assets and liabilities including investments and owners equity. Balance sheets indicate whether it has enough assets to cover debt interest and money borrowed that can be paid assets used to maximise profits if owners are making a good return on their investment * The accounting Equation and Relationships (A) Assets = (L) Liabilities + (OE) Owners Equity The accounting equation forms the basis of the accounting process which shows the relationship between assets, liabilities and owners equity. The accounting equation shows that the assets of the business may be financed by either the owners or by parties external to the business. COGS = inventory + purchases closing stock * Comparative Ratio Analysis By comparing ratios of a firm over time reveals trends and indicate directions for the future. Comparisons with other businesses and industry ratios is often used although can be inaccurate due to differences in companies and industries. Businesses often compare ratios against common standards such as statistics from the ABS. * Limitations for Financial Reports Historic cost accounting states that values are stated at the cost incurred at the time of purchase or acquisition, meaning financial statements will be a mixture of different year figures. Historic cost has been used for a long time although may become inaccurate in times of inflation. Value of Intangibles licences, trademarks, brand names and goodwill. Effective Working Capital (Liquidity) Management * The Working Capital Ratio Working Capital Ratio = Current Assets over Current Liabilities (2:1 ACCEPTABLE ALTHOUGH VARIES) The Working capital ratio shows if current assets can cover current liabilities. * Control of Current Assets Cash Balances are generally kept at a minimum and hold marketable securities as reserves of liquidity. Receivables is important in terms of management of working capital. The quicker the debtors pay, the better the firms cash position. Inventories make up a significant account of current assets and their levels must be carefully monitored so that excess or insufficient levels of stock do not occur. * Control of Current Liabilities Payables must be paid by their due dates due to avoid any extra cash charges imposed for late payment and to ensure that trade credit will be extended to the business in the future. Loans management of loans is important for establishment interest rates and ongoing charges must be investigated and monitored to minimise costs. Overdrafts policies should be used to manage bank overdrafts and monitor budgets on a daily or weekly basis so that cash supplies can be controlled. * Strategies for Managing Working Capital Leasing Factoring Sale and Lease back is the selling of an owned asset to a lesser and leasing the asset back through fixed payments for a specified number of years. Effective Financial Planning * Effective Cash Flow Management The activities of a business are divided into three categories as a statement of cash flows 1. Operating Activities e.g inflow cash and credit, outflow payments to employees 2. Investing Activities -e.g selling of old motorbike, purchasing new property 3. Financing activities- e.g inflow selling of shares, outflow repayment of debt. * Management Strategies distributing payments through out a month or year or different period so that cash shortfalls do not occur payments and bad debt of accounts by debtors can cause shortfalls of cash for businesses at important times. discounts for early payments * Effective profitability Management Cost Control Fixed Costs e.g insurance and salaries Variable costs change with the level of activity within a business e.g materials and labour used in the production of a product e.g fixing a roof. Cost Centres are particular areas, departments or sections of a business to which costs can be directly attributed. Direct costs are those allocated from a particular product, activity, department or region e.g depreciation of equipment used solely in the production of one good. Indirect costs come from shared projects, activities, departments or regions. Staff should be motivated to minimise expenses where possible as savings can be substantial if people take a close look at costs and eliminate waste and unnecessary spending. * Revenue Controls Sales objectives must be at a level of sales that will cover costs (fixed and variable) and result in profit. Changes to the sales mix can affect revenue. Research should be made to identify the effects of sales mix changes before implantation. Pricing Policy affects revenue and therefore impacts on working capital. To attract buyers while underpricing may bring high sales but still result in cash shortfalls. Ethical and Legal Aspects of Financial Management * Audited Accounts An audit is an independent check of the accuracy of financial records and accounting procedures. Types of Audits- 1. Internal conducted internally by employees 2. Management used to review the firms strategic plans and determine if changes need to be made. 3. External required by corporate law to ensure it complies with Australian auditing standards. * Australian Securities and Investments Commission (ASIC) ASIC enforces and administers laws and protects consumers in the areas of investment, life, insurance, super and Australian banking. ASIC sets out to reduce fraud and unfair practices in financial markets and products. ASIC ensures that companies adhere to the law. Collects information about companies and makes it accessible to the public. * Corporate Raiders and Asset Stripping Asset Stripping describes the practice of organisations that identify and sell off for a profit, assets of a company, especially one that has been acquired in a recent takeover. Entities that take over other companies and sell off the assets are known as corporate raiders. HSC Topic 3 Marketing Case Study Types of Markets Resource BHP Billiton Industrial Painter Intermediate Gloria Jeans selling cakes Mass IBM Computers Niche ‘Mountain Bike Magazine Developing Marketing Strategies Product and Service Positioning * Qantas was under competitive pressure from Virgin Blue in the leisure market * Qantas wanted to maintain its higher positioned government and business segments * Expanded to a subsidiary Jetstar who were positioned as a value-for-money product Price including pricing methods Price Points * Jetstar International * Base price for seat, Charge $30 for meal, $7 for blanket and amenity kit and $12 for entertainment kit Promotion Advertising * Dell Computers focus much of their advertising to print media * Use inserts/pamphlets/brochures in magazines, typically in the technology liftout section of the newspaper, where their target market is most likely to be reading Place Distribution * Dell distribute products directly, with no intermediaries * Exclusive distribution (no stores), Intensive (internet) * Distribution system is e-commerce Ethical and Legal Aspects Role of Consumer Laws in dealing with Deceptive and Misleading Advertising * Gillette (Duracell) VS Eveready * TV advertisement claims Duracell lasts up to four times longer than ordinary batteries * Eveready claimed the ad infringed the TPA * Independent tests showed the Duracell batteries never last 4x longer * Federal Court ruled Duracell breached the TPA in the areas of misleading and deceptive conduct and false representations about the quality and benefits of goods The Nature and Role of Markets and Marketing Marketing is a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers. * Types of Markets Resource markets e.g mining, agriculture, forestry and machinery. Industrial Markets purchase products to use in the production of other products e.g buying flour to make bread Intermediate markets (resellers) consist of wholesalers and retailers who purchase finished products and resell them to make profit Consumer Markets e.g cars, clothing, food Mass Market is when the seller mass produces, mass distributes and mass promotes one product to all buyers Niche Markets are micro markets made for buyers who have specific needs or lifestyles * Production Production Orientation 1820s 1920s When a business concentrates on making as many possible goods at the lowest price possible Sales Approach 1020s 1060s When a business concentrates on selling techniques to attract customers Marketing Approach 1060s 1980s When a business collects information on consumer trends to sell its products * The Marketing Concept Consumer Orientation when a business concentrates on maximising customer satisfaction to sell its products Relationship Marketing the focus on encouraging repeat purchases and loyalty to the business by managing customer relations at the time of and after the initial purchase. Elements of a Marketing Plan * Establishing Market Objectives * Identifying Target Market Total Market Approach one type of product with little or no variation aimed at everyone through one distribution system. Market Segmentation approach the market is subdivided into groups of people who share certain characteristics. * Developing Marketing Strategies (examining elements of the 4 Ps) * Implementation, Monitoring and Controlling Financial Forecasting measures the sales potential and revenue forecasts (benefits) for strategies and compares these with anticipated costs. Comparing actual and planned results 1. Sales analysis comparing of actual sales with forecast sales to determine the effectiveness of the marketing strategy 2. Market share analysis/Ratios by comparing competitions market share to their own this can reveal changes in total sales (increase or decrease) 3. Marketing Cost Analysis marketer breaks down the total marketing cost into specific marketing activities to access the effectiveness of each activity. Market Research Process Market research is the process of systematically collecting, recording and analysing information concerning a specific marketing problem. The three steps of the market research process are; 1. Determining information needs 2. Collecting data from primary and secondary sources 3. Data analysis and interpretation -the data that represents average, typical or deviations from typical patterns. The data must be then displayed in way which statistics and figures can be conducted e.g spreadsheets Customer and Buyer Behaviour Customers are classified into two categories: Consumer the process of purchasing goods and services for personal household use. Organisational the purchase of goods and services by producers, resellers and government. Types of Customers Household Personal personal and household spending plays a dominant role within the economy as it contributes to the level of economic activity which affects business profits, unemployment levels, interest rates levels and rate of inflation. The Firms market consists of businesses that purchase goods and services for further processing or for use in their production process. Educational institutes Government Customers Governments spend billions of dollars each year for a wide variety of goods and services ranging from battleships to paperclips. All purchases of the government spend public funds to buy products, the government is accountable to the public, requiring a much more formalised set of buying procedures where firms submit quotes to supply a particular good or service and the lowest bid is generally accepted. * The Buying Process The buying process involves 5 common steps: Recognise the problem need or want requiring satisfaction Search for info brands, product characteristics, warranty, price etc Evaluate alternatives cost and benefit analysis Purchase Evaluate after purchase stability of product, satisfaction gained or dissatisfaction may occur. * Factors influencing Customer Choice Psychological influences e.g perception, motive, attitude and personality Socio-cultural influences e.g family, friends, social class, culture and subculture. Economic Influences -A boom is a period of low employment and rising income. Contraction is a period of slowly rising unemployment with incomes stabilising. Recession sees unemployment reach high levels and incomes fall dramatically. Expansion means unemployment levels start to fall slowly and incomes begin to rise. Government Influences government will put into place policies that expand or contract the level of economic activity. These policies directly or indirectly influence business activity and customers spending habits and such will influence the marketing plan. Developing Market Strategies * Pricing Strategies Price Skimming charging the highest price possible for innovative products Pricing Penetration charges to lowest price possible for a product or service to achieve large market share Loss-leader selling a product below its cost price to attract customers Price Lining a limited number of key prices for selected product lines e.g one line of watches for $35 and a more expensive line at $55 * Pricing Methods Cost-plus margin the total cost of production then adds on amount for profit (mark-up) Market set prices according to the level of supply and demand, when demand is high prices are high Competition based a business chooses a price based on competition, either below, equal to or above * Marketing segmentation and product Mass marketing or a total marketing approach This includes basic food items, water, gas, electricity etc. Concentrated Market Approach -By using the concentrated market approach the business is able to analyse its customer base more closely and design strategies to satisfy this select groups needs, and develop particular products based on customer feedback. Product Differentiation is the process of developing and promoting differences between the businesses products and those of its competitors. e.g jeans with designer labels and washing detergent with brightener additives * Place/Distribution Channels of Distribution or marketing channels are routes taken to get the product from the factory to the customer. The process usually involves a number of intermediaries such as wholesalers, brokers, agents or retailers. To choose the channel of distribution the location is the main contributor of the business market or market coverage (number of outlets a firm chooses for it product). There are three ways a business can cover a market Intensive distribution when a business saturates the market with their product e.g milk, lollies and newspapers Selective Distribution businesses use a moderate proportion of possible outlets where customers are prepared to travel e.g clothing, furniture Exclusive Distribution only one retail, outlet in a large geographical area for exclusive and expensive products. Physical Distribution Transport Warehousing involves receiving, storing and dispatching goods. Inventory controlled through a system that maintains quantities and varieties of products appropriate for the target market.  · Effects on Distribution 1. Technology 2. Local Government Approving new development applications and alteration to existing premises Fire regulations Determining land zoning and the purpose for which a building and land can be used Parking regulations Health regulations Size, shape and location of business signs Ethical and legal Aspects Environmentally responsible products Materialism an individuals desire to constantly acquire possessions Impact of retail development -intensely competitive environment may result in some retailers using questionable marketing practices Sugging Selling Under Guise of a survey, Role of Consumer Law Deceptive and misleading Price- Discrimination Implied Conditions or terms Merchandise quality meaning that the product is of a standard a reasonable person would expect for the price Fitness of purpose meaning that the product is suitable for the purpose for which is being sold. That is, it will perform as the instructions or advertisement implies Warranties Resale Price Maintenance Legislations to respond to ethical and legal aspects of marketing: The Trade Practice Act 1974 is one of the most important pieces of legislation in Australia and has two purposes: 1. To protect consumers from misleading and deceptive conduct 2. Restrictive trade practices to restrict competition as well as ensuring that a number of businesses are operation at any one time in the same market, to avoid the problem of monopolistic power. Fair Trade Act (FTA) is a mirrors legislation that covers sole traders and partnership as well as companies Implied conditions in both Acts: Merchantable quality worth the money Fit for purpose does its jobs. HSC Topic Four: Employment Relations Case Study Managing the ER function Line Management * ALDI Supermarkets * Individual store managers are expected to solve all instore problems there is no ‘area manager or specialist ER department Key influences on ER Social Inf