The Pepsi Carbonated Soft Drink Consumer Demand Promotion Essay Example for Free

The Pepsi Carbonated Soft Drink Consumer Demand Promotion Essay A strategic plan for PepsiCo North America is hereby proposed as follows for the geographical region of the national United States for the Pepsi Soda Product promotion to consumers between the ages of 12 through 18 years of age. It will utilize a pull strategy through the distribution channels to stimulate demand for the Pepsi carbonated soft drink to the end users as defined to maintain Pepsi’s younger generation of consumers over the next two decades. The strategic plan will consist of a strategic alliance with The Walt Disney Company coupled with a pop star endorsement by Hannah Montana and Kanye West with multiple promotion communication channels and strategies over the next two (2) years. The primary competitor, Coca-Cola, has been entrenched in the North American beverage market and is most commonly consumed by older generations. As such, Pepsi has been typically been targeted to a younger audience. As the ‘Pepsi Generation’ ages, PepsiCo North America should take proactive marketing action into the younger audiences to maintain the younger generations of soft drink consumption for decades to come. The Company History and Related Companies 1 PepsiCo (herein referred to as the ‘Parent Company’) was founded in 1965 via the merger of two major corporations, Pepsi-Cola and Frito Lay. Subsequently in 1998, Tropicana was acquired to add the family of brands under PepsiCo. In 2001, the Parent Company made yet another bold step in the merger with The Quaker Oats Company, which also then included the Gatorade Company. Notwithstanding the Parent Company being relatively young, several of the brand names under the PepsiCo umbrella have been in existence for over 100 years. Through the multiple brand acquisitions and developments PepsiCo is now a leading conglomerate owning significant market control and brand equity in consumer convenience foods and beverages. â€Å"PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $92 billion† (PepsiCo, 2007). Sales volumes are measured on the retail level to show success of the manufacturing due to the Parent Company utilizing a pull strategy for its multiple divisions and product lines with a combination of a push strategy. The current headquarters are located in Purchase, New York. The multiple corporations within the PepsiCo Family are Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International, and Quaker Foods North America. Frito-Lay North America markets and sells to the subject geographical regions the following well known brands of convenience foods: Fritos, Lays, Cheetos, Ruffles, Doritos, Rold Gold, Tostitos, Sunchips, Munchies, Crackerjack, Go Snacks, Quaker Fruit and Oatmeal Bars, Quakers Corn and Rice Snacks, and even more. While Frito-Lay North America sells to business, its end user is a consumer who has demand for a snack food, or convenience food. These are typically found in grocery stores, gas stations, small markets, vending machines, public schools, and several other distribution channels. Several of these products are facing new market changes including a health conscious consumer movement. Thus, a great diversification of product lines within the PepsiCo Family is The Quaker Oats Company, merged in 2001, just on the cusp of the health conscious movement. Brands include Quaker Oats products, Aunt Jemima products, and Rice-a-Roni products. The Gatorade brand rights are legally owned by this Corporation, yet it is sold and marketed through PepsiCo Beverages North America. PepsiCo International markets and sells the North American product brands abroad, and in additional markets and sells the Mirinda, Walkers, Sabritas, Gamesa, etc. and several others in multiple countries (over 200). Each of these subsets of brands are developments of unique products tailored to each geographical culture it is marketed to. The focused Corporation of the subject strategic proposal is PepsiCo Beverages North America. This company was originally founded in 1898 by a North Carolina druggist. PepsiCo Beverages North America (herein referred to as the ‘Company’) sells several brands of consumer beverages in the United States and Canada. The various beverage products span through carbonated soft drinks, juices, readymade teas, isotonic sports drinks, bottled water, and enhanced waters. Several established brands include Diet Pepsi, Mountain Dew, Gatorade, Tropicana products, Aquafina Water, Sierra Mist, Mug, Propel, Sobe, and Dole. Refer to the Competitor Analysis section for in depth product information and listings. Outside of manufacturing and selling bottled products, the Company manufactures and sells concentrates for some of the above mentioned brand name beverage products to licensed bottlers. The Company has also established strategic partnerships with Lipton and Starbucks to create, market, and sell ready to drink Lipton tea brands and bottled ready to drink Starbucks Frappuccino drinks. These are two very powerful example of a co-branding strategic partnership. Industry Analysis of the Beverages Market 4. Soft drinks can be divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks category. The carbonated soft drink market has been challenged by a health consciousness movement within American consumers. Health consciousness is a very strong growing trend in America, and has created an organic movement within the drink and food industries. Within the last five years ending in 2006, the soft drink market in the United States has experienced 0. 0% growth due to this factor. Since 1975 the overall growth rate of soft drink market has been slowing. (Figure_1) As this provides a constraint on new market opportunities, it does not constrict maintaining a similar level of revenue or slightly improving it. As the current consumer market continues to age, it is expected there exists a certain level of retention to Pepsi consumption until a specific age when it is recommended by a doctor not to consume a soft drink. Given Pepsi’s position in terms of product placement within demographics, it holds the youth market when compared with Coke. As growth slows, the youth markets must continually be targeted to maintain the consumption level of Pepsi as new consumers enter the market of soft drink consumption, and other age out of it. This strategy will over a long period of time prove to gain market share of domestic soft drink consumption over Coke, while being offset by a slowing of the overall consumption. Figure 1 [pic][pic] The subject proposal is targeted to use a pull strategy through the distribution channels, and is therefore focused on the end user, or consumer segment of the market. Notwithstanding, the industry overall (primarily Pepsi and Coke as outlined herein below) does not only sell directly to consumers. A very prevalent distribution channel is through licensed bottlers and restaurant chains. A very strong business to business transactional distribution channel exists in the soft drink industry, and in fact 22. 6% of all soft drink volumes are sold in a syrup for fountain soda. This is 100% business to business within the scope of these transactions. The remaining 77. 4% of packaged soft drink volume comprises primarily of business to business transactions to retailer and bottling companies. (Figure_2) While PepsiCo Beverages North America does not directly sell to consumers primarily, the subject proposal will stimulate demand for the product at the end user level, and therefore result in more business to business sales in order to meet that demand. PepsiCo Inc. and Coke-cola Co. have dominated the carbonated soft drink industry in North America since they first entered this market. They continue to compete with each other for market share for centuries. Therefore, some experts conclude that the soft drink market is an oligopoly or even a duopoly between Pepsi and Coke. 5 By the year of 2006, PepsiCo has the leading share (26%) of U. S. liquid refreshment beverage market, followed by Coca-Cola which has taken 23% of market share as indicated in the left chart. Cadbury Schweppes, another big rival on the bottled soft drink shelves, obtained 10% by acquiring key brands in the US, namely Dr. Pepper, Seven Up, and Canada Dry. SWOT Analysis |Strength |Weakness | |Branding and packaging |Hard to enter markets occupied by Coca-Cola | |Appealing to young generation |Lack of novelty in advertising | |Superior Taste (in Blind Tests) | | |Many distributions | | |Opportunities |Threats | |Global markets |Health Conscious Consumer Trends | |Additional Youth Consumers entering the market |More substitutes | â€Å"Manifesting brand essence through packaging is powerful at retail,† declares Ron Pence, Pepsi Senior Marketing Manager for packaging innovation. Youth and vitality is the main idea that the Pepsi brand tries to express, and the bottle design helps the brand associate with teens at the age between 12 to 18 year old. Pepsi restyles its cans with a series of 35 new designs and different themes such as car culture, sport or fashion. On Pepsi website, each theme has its own video clips which can be downloaded for free and other features to attract consumers with the purpose of representing the â€Å"fun, optimistic and youthful spirit â€Å"of Pepsi. The natural tendency of young generation is to rival with old generations. Pepsi also use â€Å"music, which was traditional weapon of teenager to show their rebellion approach†. 7 Besides, a blind test conducted by Pepsi was performed in shopping malls, grocery stores and other public locations, in which consumers were asked to pick the soft drink they liked better, without knowing whether the cola they tasted was Coke or Pepsi. As results came in, 57% of testers chose Pepsi and only 43% chose Coke. It became apparent that Pepsi tastes better than Coke. 14 In addition, Pepsi products are distributed to many outlets. For example, supermarkets where Pepsi buys large shelf area and display areas so the customer can find them easier, Convenience stores, gas stations, restaurants, movie theaters and almost and other conceivable spot. Pepsi is now sold in more than 160 countries around the globe, but it still has a weakness in the international beverage market because it entered later into this arena than Coke. Pepsi has tried to enter this market by trying to do in three years what took Coke 50 years to do. Nevertheless, Pepsi has to spend years â€Å"to mature simply due to Coke’s dominance in the international market and the strong ties that Coke has developed with these markets and their governments. †15 Additionally, when marketing its products, Pepsi utilize celebrity endorsement mostly which bored some consumers due to lack of novelty. Conversely, the success of fresh and creative advertise has consistently helped Coco-Cola attract and retain customers. The world is becoming a smaller place with investors thinking in terms of sectors rather than geographic boundaries. Broad global markets, like China, India, can provide lots of opportunities for Pepsi. We may conclude from the tables on the right that in 2004, 63% PepsiCo’s profits come from the United States 8, and in the same year, the U. S. holds 30. 90% of the global market share under Europe (showed in the table below), which means Pepsi still has opportunities to compete globally. Moreover, as Pepsi targets young generation, additional youth consumers enter the market every year, which provides Pepsi adequate consumer base. For these decades, changing societal concerns, attitudes, and lifestyles become important trends that force the soft drink industry’s business environment to change. Growing health concerns for caffeine and sugar consumption threatens the carbonated industry. The large amounts of sugar, fat, and acid contained in cola will lead to heart disease, vascular diseases, osteoporosis or tooth decay. On the other hand, many other companies have tried to enter the carbonated industry, but they face high barriers, such as lawsuits and tough competition. Some of these companies end with searching for entering the noncarbonated soft drink industry for growth. Consequently, some consumers will turn to noncarbonated soft drink, such as bottled water, teas, instead of soda. Environmental scan of today’s carbonated beverage marketplace A quick glance at today’s beverage marketplace indicates an increasing amount of beverage alternatives in the market. As such, these beverage companies must understand the various factors that can help them succeed or fail. For instance, the increased awareness of the importance of health has significant influence on soft drink industry. Since most soft beverages comprises of unhealthy ingredients including High Fructose Corn Syrup, the beverage industry faces an incredible threat to their reputation and sales. Therefore, developing consumer-preferred products that can become an integral element in consumers’ daily lives has become an essential issue for beverage industry. Possible environmental factors are as follows:  ¦ Social environment ? In 2004, 28 percent of all beverages consumed in the U. S. were carbonated soft drinks. In the United States, 450 different types are sold and more than 2. 5 million vending machines dispense them around the clock, including in elementary and high schools. ? As consumers focus more on health and nutritional benefits of food items, it has sparked a key new driver in trends throughout the beverage industry. The result is the decrease in sales of carbonated beverages.  ¦ Competitive environment ? Monopolistic competition: PepsiCo. , The Coca-Cola Company, Cadbury Schweppes ? The entire beverage industry, including but not limited to bottled water, juice, other carbonated beverages, and ready-to-drink tea. ? Recent growth and demand of sports and energy drinks.  ¦ Regulatory environment ? In response to weight gaining and health concerns, the nation’s largest beverage makers including Cadbury Schweppes, PepsiCo. and The Coca-Cola Company agreed in May 2006 to halt nearly all soda sales in public schools. Beginning in 2009, elementary and middle schools will sell only water and juice (with no added sweeteners), plus fat-free and low-fat milk. High schools will sell water, juice, sports drinks and diet soda. Diet sodas use artificial sweeteners, which add little or no calories, though some, such as aspartame, have been embroiled in controversy for years over their questionable health benefits and even possible links to cancer. Obviously, Pepsi is facing not only the transition of customer perception but also the regulation stress. Besides, it always has it big and powerful competitor, The Coca-Cola Company. Under this circumstance, strategy and innovation become the top issue of Pepsi. 16 Competitor Analysis The table below displays the various brands between PepsiCo. and The Coca-Cola Company. It appears that for every product on the market from one company, the other company has an similar product to match it. This demonstrates the intense compeititve nature of both companies to keep up or outwit the competition. [pic] Differential Advantage The Coca-Cola Company has the distinct advantage of being the most recoginzed brand in the world. It is considered the classic beverage in the United States as well as in other countires. In fact, when Coca-Cola decided to change its forumula dubed â€Å"New Coke† in response to Pepsi’s emergence, public outraged roared throughout the nation. Fearing mass boycott, the original Coke formula was quickly reinstated to satisfy the demands of the public under the name â€Å"Coca-Cola Classic†. Revered as the classic beverage, Coke enjoys the stature of being the market leader. Coke appeals to a wide global audience in terms of demographics and popularity. One side effect of being the â€Å"classic† choice leads to a larger share of older consumers. PepsiCo. appeals to younger consumers with a more sweeter taste compared to Coke. Pepsi presents itself as the hip and cool alternative choice over Coke. This is edvient in the deep blue hues and patterns that Pepsi takes advantage of in its marketing compaigns. Pepsi’s younger image is also aided by celebrities endorsement touted by the teen market including Britney Spears, ‘NSync, along with popular rappers. Self-proclaimed as â€Å"The Choice of a New Generation†, Pepsi devised television commericials of younger consumers participating in blind taste tests. The participants frequently perferred Pepsi over Coke. Eventually, PepsiCo. began hiring popular celebraties to promote their products. Resource Analysis The Coca-Cola Company The Coca-Cola Company’s flagship product, Coke, is sold in stores, restaurants and vending machines in more than 200 countries. Originally developed as a medicine in the late 19th centry by John Pemberton, it has evolved into a dominating figure in the soft drink market throughout the 20th century. The Coca-Cola Company licenses worldwide bottlers who hold territorially exclusive contracts with the company. Cola cncentrate is sold to these bottlers who them produce the finished cola in cans and glass bottles while using filtered water and various sweeteners. The finished product is then sold, distributed, and merchandised to retail stores and vending machines. Coca-Cola Enterprises is currently the single largest Coca-Cola bottler in North America, Australia, Asia, and Europe. In addition to licensing to bottlers, the company sells the concentrate to major restaurants and food service distributors for use in fountain drinks. The Coca-Cola Company envision a world in which†¦ They improve the lives in every community that they touch. They replenish each drop of water that they use. Their packaging is no longer seen as waste, but as a valuable resource for future use. Workplace rights are protected and all people are respected. They work in partnership with others to provide good jobs, world class quality beverages and a healthy environment. PepsiCo The Pepsi Cola Company started in 1898 in Purchase, New York. It became known as PepsiCo when it merged with Frito Lay in 1965. PepsiCo owned Kentucky Fried Chicken, Pizza Hut, and Taco Bell up until 1997 when they were spun off into Tricon Global Restaurants – which eventually became Yum! Brands, Inc. In 1998 and 2001, PepsiCo purchased Tropicana and Quaker Oats, respectively. PepsiCo, a global American beverage and snack company, manufactures, markets, and sells a variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks, and other foods. PepsiCo also manufactures Quaker Oats, Gatorade, Frito-Lay, SoBe, and Tropicana. (Figure_3) In several ways, PepsiCo differs from its competitor, The Coca-Cola Company, having almost three times as many employees. The Pepsi Bottling Group was formed for distribution and bottling. Figure 3 [pic] Mission Statement: We aspire to make PepsiCo the world’s premier consumer products company, focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity. Values: Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether actions today will contribute to our future. It is about growth of people and company performance. It prioritizes making a difference and getting things done. Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while being consistent with the processes that ensure proper governance and being mindful of the rest of the company’s needs. Responsibility and Trust form the foundation for healthy growth. It’s about earning the confidence that other people place in us as individuals and as a company. Our responsibility means we take personal and corporate ownership for all we do, to be good stewards of the resources entrusted to us. We build trust between ourselves and others by walking the talk and being committed to succeeding together. [pic] [pic][pic] Based on the pie chart above, PepsiCo and Coca-Cola have roughly the same market share in the United States. Finacial Analysis Brief Overview [pic] Overall, PepsiCo trumps The Coca-Cola Company in many financial categories – largly in part from PepsiCo’s wide array of products throughout 4 divisions: ? PepsiCo International ? Frito-Lay North America ? PepsiCo Beverages North America ? Quaker Foods North America Egg Diagram [pic] Analysis of the Target Market Consumers 3 |Who are they? |Teenagers between age of 12 and 18 in U. S. | |What do they buy? |Teens want to buy something real, something from â€Å"corporations | | |that remind them of themselves†10. They don’t want things that | | |they are thought to like. They something that pushes the | | |boundary, different than what they had before. | |When do they buy it? |When teens find something they can identify with and have the | | |need that must be satisfied immediately. | |How do they choose? |They quickly dismiss the products that look like some 45-year-old| | |guy trying to sell them something. They easily recognize the old | | |product that was yesterday’s news. They can tell what’s being | | |â€Å"fake† and what’s being â€Å"real†10 | |Why they prefer a product? |They pick a product because they believe that product can express| | |themselves13. They can relate to someone like themselves through | | |this product. | |How they respond to a marketing program? |They respond to something catchy. For example those ads in | | |magazine are brightly colorful10, the flashy graphics suggest | | |that teens respond well to that type of ad campaign; in | | |cyberspace they respond to a space created uniquely for them12. | | |They also respond well to products on sales. | The target consumer market to stimulate demand within is the young teen market between the ages 12 through 18 years old, geographically located within the United States. This segment is compiled of the â€Å"Tween† market and the older high school teenagers. â€Å"Tweens develop sophisticated tastes beyond their years, with boys gravitating toward electronic, Internet, and video games, and girls preferring fashion and social interaction components† (Abernathy, 2004). With the technology age with computers and increasing demanding academic environment, tweens and teens have less disposable time, and therefore product advertising attention is often tuned out. â€Å"Tweens spend their own money today: on average, $9 a week. Some experts estimate tweens have close to $80 a week in disposable income available to them†¦ Overall, the tween market is valued at $43 billion† (Abernathy, 2004). Beyond the tween market, the teenage high school student will sometimes hold a part time job, and have more independent tendencies. All in all, the 2000 U. S. Census estimates the U. S. population between the ages of 10 through 19 years old to be approximately 40. 6 million individuals. The goal of researching the target consumer is to accurately pinpoint the consumer behavior in regards to our product. According to our finding, these teens and â€Å"Tweens† are constantly searching for identities at their age. The most effective way of appealing our product to them is to find a common ground. For example, there are various reasons why teens and â€Å"Tweens† idolize certain celebrity. One of them is that they can find bit and pieces of themselves in their celebrity idol. After all, who doesn’t like to see himself/herself being a celebrity? So no matter what the product is, as long as it possesses characteristic of the identity the teens and â€Å"Tweens† are searching for, they will make the purchase. The teens and â€Å"Tweens† are still very young. They have very vivid imagination and are highly visual. Therefore they are attracted to colorful pictures in the magazines. It is usual for them to just look at the pretty pictures in the magazine without reading the articles that supplement pictures. According to the finding, these target consumers prefer products that are â€Å"real†. By â€Å"real† they mean the manufacture genuinely create this product specifically for them, at least it should appears to be. Since Pepsi Cola is basically for everyone, making it appears to be special to teens and â€Å"tweens† are very important. These consumers prefer individuality. Such preference is reflected in the finding that they are constantly in search for a product that expresses themselves. The last thing these consumers wants is pressure or stereotype that sometimes appears on the commercial and magazine ads. Strategic Action Plan. The strategic alliance with Walt Disney will initially consist of (i) concert support of and promotions at several of Hannah Montana’s concerts throughout the United States, (ii) Pepsi promotion via seamless advertisement within the Hannah Montana aired shows by having characters refresh themselves with Pepsi and also have Pepsi signs in the background, and (iii) a sparingly aired Pepsi commercial endorsed by Hannah Montana to be promoted via the ABC channel network (a Disney owned network). A future alliance holds the possibility of future benefits through Disney media networks and consumption at theme parks and resorts. The concert support will come with signs at the live shows and events, Pepsi sales at the concerts, and Pepsi commercial promotions on the concert screens at intermission. There will also be a special promotional event of Pepsi Challenge tasting at the Pepsi center, which was previously near sell out for Hannah Montana. The seamless advertisement on the Hannah Montana show will consist of the characters drinking Pepsi as refreshment in a natural environment along with Pepsi signs in the background of the sets. This will continue for two (2) years during the strategic partnership, and be maintained on a very subtle level in the productions. Twice a year over the two (2) year period ABC (A Disney owned network) will air a Pepsi commercial of a music video of Hannah Montana singing the Pepsi Theme song. As part of the strategic alliance, Disney is giving a low market rate for airing over the network. ABC has been topping the charts with hit series and has been expanding viewer base considerably over the past decade. The Denver Post summarized the market impact this pop idol holds as: â€Å"When an episode of Hannah Montana followed the debut of High School Musical 2 this fall, the movie sequel got all the buzz, but the episode of Hannah Montana averaged 10. 7 million viewers the highest ratings for a regular series in the history of basic cable. The Disney Channels 90 million subscribers can watch Hannah Montana daily, sometimes as often as seven times a day. An average 2. 2 million viewers see each episode. The show also airs weekly on ABCs Saturday morning block, and is licensed in 177 countries. Of course HM is available around the clock as streaming video on computers and on iTunes. Compared to the ratings of all shows on U. S. television, Hannah Montana is second only to American Idol among kids 6-11 and tweens† 2 (Ostrow, 2007). Utilizing Walt Disney’s ‘tween’ star Hannah Montana for endorsement will provide awareness and positive associations with the Pepsi brand of carbonated soft drink. This pop star idle will build significant brand equity within the demographics of young females between the applicable ages of 12 through 15 years old. This will predictably improve vending machine sales at middle schools and high schools, as well as sales at grocery stores for their respective homes. It will also build repertoire with the respective mothers who also attend the concerts and watch the shows. The mothers of the daughters are in fact the ultimate purchasers (and also partially the ultimate consumers in some cases) of the product, while their daughters are the influencers and ultimate consumers. The daughters of families will typically have a greater influence over the parents as purchasers in American families more so than comparable aged boys. This is primarily due to the value system of the parents to typically spend more attention and money on the daughters of the family, as young females are seen to need more care. This depicts why Hannah Montana is a highly effective endorsement for Pepsi within this demographic. This strategic relationship with Walt Disney will provide the future potential for a stronger partnership with Walt Disney, thereby opening the possibility of Pepsi consumption within the theme parks and resorts, while opening a powerful media network to younger audiences for future promotion channels. Kanye West will build brand equity in the male teen market between the applicable ages of 14 through 18 years old. A male target of the upper teen years is deemed more effective, due to males in their teens practicing habits of independence and having allowances for spending. His aired TV commercial will be on ABC similar to Hannah Montana, however it will be aired three times a year over the two (2) year period. The commercial content will be his version of a Pepsi theme. Works Cited 1 Overview: Company History (2007). PepsiCo Corporate Website. Retrieved October 28, 2007 from http://www. pepsico. com/PEP_Company/Overview/index. cfm. 2 Ostrow, Joanne (Oct. 19, 2007). ‘Disney Wields Its Marketing Magic. ’ Denver Post. Retrieved October 29, 2007 from http://www. commercialfreechildhood. org/news/disneyweilds. htm. 3 Abernathy, R. W. (November, 2004). Tween Market 101. TD Monthly. Retrieved October 29, 2007 from http://www. toydirectory. com/monthly/article. asp? id=918. 4 The Beverage Marketing Corporation (August, 2007). 2007 Carbonated Soft Drinks in the U. S. Retrieved October 29, 2007 from http://www. beveragemarketing. com/reportcatalog3f. html. 5 Industry Analysis: Soft Drinks. Meghan Deichert, Meghan Ellenbecker, Emily Klehr, Leslie Pesarchick, Kelly Ziegler. Strategic Management in a Global Context February 22, 2006 from https://www. csbsju. edu/library/local/5thYear/zeigler_paper. pdf 6 PepsiCo. Performance with Purpose (2006). PepsiCo Corporate Website. From http://www. pepsico. com/PEP_Investors/AnnualReports/06/PepsiCo2006Annual. pdf 7 Kumar, Arvind. Finding weakness in the competitor strength. From http://business. articlesarchive. net/finding-weakness-in-the-competitor-strength. html 8 Murray, Barbara. (2006b). Pepsi Co. Hoovers. Retrieved February 13, 2006, from http://premium. hoovers. com/subscribe/co/profile. xhtml? ID=11166 9 Datamonitor (2005, May). Global Soft Drinks: Industry Profile. New York. Reference Code: 0199-0802. 10 http://www. inc. com/magazine/20001201/21117_pagen_3. html 11http://www. clickz. com/3334641 12www.ala. org/ala/pla/plaevents/nationalconf/program/thursdayprograms/mrbibliography. doc 13 www. marketingprofs. com/2/kewl. asp 14 Sampson Lee (Nov 21, 2007). Coke or Pepsi? From http://www. gccrm. com/eng/content_details. jsp? contentid=2073subjectid=101 15 Pepsi cola from http://www. freeessays. cc/db/11/bmu315. shtml 16 Larry West, What is the Problem with Soft Drinks? About. Com website, from http://environment. about. com/od/health/a/soft_drinks. htm |Team 5 | |Chen, Szuhua (Twiggy) | |Xiong, Xitao (Helen) | |Ma, Johnny | |Tsang, Man | |Dwyer, Michael | Figure_2.

Influence Of Media On The Public Behavior Sociology Essay

Influence Of Media On The Public Behavior Sociology Essay This research paper analyses the impact of Bollywood movies and generated ideas of romance and love marriage within middle and upper-middle class urban Pakistani marriages. It especially focuses on the influence of this on the acceptability of love marriages. It looks at selected samples of youngsters falling in the age group 17-29 and parents. Exceptions looked at are those falling outside the age group who had love marriages. The similarity of Indian and Pakistani mindset is scrutinized with respect to love marriages. It explores the issue of unacceptability of love marriages in Pakistan and the gradual changing trend. The vital role played by fantasy within Indian marriages is explored and the focal point is commercial Hindi films watched by the middle class of Karachi which fall within the genre of melodrama. Love marriages in bollywood are looked in depth. Finally the paper aims at exploring the factors responsible for the change in attitudes towards marriage and analysis of whe ther Bollywood movies influence is one of those factors which has considerably influenced the mindsets towards acceptance of love marriages in Pakistan. Research Question Have Bollywood movies influenced the increased acceptance of love marriages amongst the middle class of Karachi? Research Hypothesis Based on a review of literature as noted later in this proposal, there is one major hypothesis area that will guide the analysis of data i.e. Bollywood movies have influenced the increased acceptance of love marriages amongst the middle class of Karachi. Secondary Research Influence of Media on the public behavior How Does the Media Influence the Way People Behave? The influence of media on public behavior is becoming more and more significant as time is passing. With the development and advancement of new technology, it is possible to distribute media content pervasively with minimal costs. Because of a high demand and supply of media content, producers engage in competitive behavior and come up with new ways to catch attention of consumers. The type of content free media shows is solely dependent on the demand for media content. However, numerous research studies on the topic have revealed that media content can shape our thoughts and alter our behavior in a number of ways. The following part of the literature review will focus on the effects of media on the behavior and perception of the general population. Furthermore, a critical analysis of the impact of media on the conception of love marriages will be discussed with reference to research studies. Watching media content takes us into a different world or more specifically, a different level of consciousness. Media content not only arouses our cognitive neurons, but also changes our behavior if exposed frequently. The effect of media is not stopped even after exposure to media content is removed; instead it causes a lingering effect by initiating a gradual thought process that can lead to behavioral changes in many cases. A good example of behavioral manipulation caused by media content is the impact of action films on children. Research on television shows, movies, music and video games which contain violent behavior shows unequivocal connection between media violence and violent behavior in both short and long term (Anderson, et al., 2003). Empirical evidence shows children emulate violent behavior portrayed by the heroes in the movies thinking that they would be able to achieve their desired outcome though violent behavior just like hero tends to be victorious in the end of the movie. Children tend to adopt some behavioral aspects from media content over a long period of time. Moreover, some behavioral changes might change throughout the whole population as children adopt those behaviors as adults, practice those behaviors over others and leave a mark on the future generations. This is the reason why media is able to change some social norms that existed previously and why some nations are afraid o f cultural imperialism through media invasion. Media consumers, whether they know it or not, are affected by what they watch and what they see over a long period of time will still shape what they perceive as normal, thanks to oft-repeated themes and images in the land of movie love (Hefner, 2011). And while movies are not intended or expected to be entirely realistic, scholars of communication theorize that exposure to media like romantic comedies, especially for young people, can shape expectations about both romance and marriage, shifting adolescent perceptions about what love is like, and how to show it (McLanahan, 2008). Researchers followed 329 subjects over 15 years. They found that those who as children were exposed to violent TV shows were much more likely to later be convicted of crime. Researchers said that, Media violence can affect any child from any family, regardless of social class or parenting (Dispenza, 2011). All our actions are based on what we learn and what we know, and we as human beings learn by seeing and imitating. Following this trend of thought we can infer that as we see from movies, we tend to act accordingly, by the means of learning and practicing. Marriages When Frank Sinatra sang about love and marriage going together like a horse and carriage, he did not consider that to a great extent the cart is put before the ox. Marriages are arranged by parents in China, India and Indonesia three countries with 40% of the worlds population plus others that practice Buddhism, Islam and Hinduism. Pakistan is one such country where arranged marriages are practiced and dating is not permissible. Couples might get a 15-minute meeting followed in a few months by a wedding. But sparks are flying, and love marriages are breaking out in India, the worlds largest democracy, with 1.1 billion people.  CEO Raju Reddy of Sierra Atlantic in India, himself in an arranged marriage to childhood friend Neeraja, was surprised to learn at the Sierra Atlantic holiday party in December that about a dozen love marriages have germinated in recent years at the 13-year-old company. The Indian government does not differentiate in its marriage statistics. But young Indians interviewed say their observations suggest that 10% to 20% of their friends are having love marriages, and expert Poonam Barua, director of the Conference Boards India Operations, says that is probably true in most of Indias cities. Bollywood movies such as  Salaam Namaste  are based on the old formula of boy meeting girl and eventually fall in love. It will be decades, if ever, before love marriages dominate worldwide. In India, the trend is specific to the middle class of 350 million, not to the 70% of the country that remains rural. But the trend is undeniable, says Barua, whose niece began a love marriage on Feb. 2 with an Indian working for Citibank. Chambravalli and Mishra say if they have children, they also will be allowed to search for true love. In the meantime, Mom and Dad will be on the lookout. Plan A and Plan B, Mishra says. It seems like the neighbouring country Pakistan has been much influenced with this breakout of love marriages too. Similarity of Indian and Pakistani Mindset This section of the literature review focuses on how the Pakistani society and its mindset is similar to that of India which has led us to use most of our secondary research with regard to the Indian population. The fact that India and Pakistan have shared the same history coupled with the reality that both nations stand next to each other in the topographical location of the world map alone can point out how similar the thinking of these nations can be at one point in time and this section specifically focuses on the aspects through which the mindsets of the populations of these two nations can be hold similar. Originally, Pakistan and India have been a part of the same Indus civilization which has led them to having similar experiences and influences across decades. Before separation, Pakistan and India shared the same goal of freedom against the colonial rule and they were united in their fight against the British. Because of the division, a multitude of issues occurred regarding the distribution of power and dominance over the new nations and these resulted in frustration which turned the countries bitter towards each other. (India and Pakistan historic conflict and future outlooks, 2003). India, Pakistan and Bangladesh, all comprised the sub-continent at that time and the people residing in Hindustan lived together except the religious and cultural differences that had led to extremely brutal reactions and vast bloodshed at times, but this is only one side of the story the other side sticks to the fact that before the arrival of east India company in 1600 a mental asylum was created which reflects the sense of hospitability among the population there to take care of the mentally ill people as well as their society (S Sharma, 10/1984 ). This sense of love and affection is still present in both Pakistani and Indian community when residents of both countries visit the one another  [i]  . Furthermore, the established fact that the people of Pakistan came from the subcontinent makes it likely that the mind set of both the nations is parallel. Politically, both the countries have more or less a similar government structure consisting of the head of the country as the President, followed by the head of the government known as the prime minister and elected ministers who are answerable to the prime ministers. Despite the coups and political violations in both the countries, they manage to hold democratic elections. Due to all the similarities in their political framework, working alongside each other would be a lot less of a hassle as there are no starkly alien political systems to contend with. The economic structures of both the countries also hold a lot of similarities. The rates of unemployment and inflation are around 6% in both the countries. Indias 63% of workforce is concentrated mainly in the production primary goods and is self sufficient in food grains and it also produces cotton, tea, sugarcane, tobacco for export. Similarly, Pakistan also has more than 50% of its population involved in agriculture and the rates of labor involved in secondary and tertiary activities in both the countries are also similar which indicate high success rates of free trade agreements if both the countries agree for it.  [1]   As per the similarities among their cities, the two extreme ends of poverty and wealth in the city of Bombay bear a strange resemblance to that of the two extremes of living standards in Karachi. Bombay, like Karachi, is an industrial port city, plagued by over population, with colonial architecture dominating certain parts of town, and only the distance of 500 miles separating the two cities. The affinity between the two cities is not confined to the infrastructure and the living habitat, but even the afternoon breeze racing in from the sea at the verandah of the Bombay Gymkhana, is a de ja vu of the experience at the Karachi Gymkhana. Focusing on the differences between Bombay and Karachi, the most attention drawing aspect is the absence of statues in Karachi. We have monuments of fountains and swords and mountaintops in the middle of a landslide depicting Pakistans first successful nuclear test in 1998 but unlike Bombay, we have no statues of people. And then there is the city of Madras, which is a city that belongs clearly to the same region as Karachi and that is where their similarities end. The realization of being present in Southern India when in Madras is inevitable at all times, as Pakistanis, our association is stronger with the Northern India. For the students (of Stella Maris College), when asked which South Asian country they most strongly associated with, responded unanimously as Pakistan in complete contradiction to anyones expectations. When enquired as to why the students correlate with Pakistan, they replied that Pakistan had been a part of India. And when asked if they felt the same affinity towards Bangladesh, they declined profusely. (India and Pakistan historic conflict and future outlooks, 2003) To conclude, the mindset of both the nations can be attributed to be similar because of the sole reason that their forefathers have spent years together which has made their traditions, political systems, economic stances as being similar. It is the matter of self interest which has made the two countries apart like Kashmir issue is one where a conflict of interest between both the nations is seen. Apart from that religion has always been a major source of division and this is one subject where definitely no consensus can be reached as everybody has a right to religion. Models of Marriage Marriages can be put in four categories in Pakistan. There are: Partially Arranged Marriages Partially Love Marriages Totally Arranged Marriages Totally Love Marriages Totally arranged marriages and totally love marriages are two extreme forms of marriages and between these two extremes are Partially arranged and partially love marriages in which parents may take their selection and give their children the option to accept or reject their choice. Broadly these can fall under the two types of marriages (in India and Pakistan): Arranged and Love, as explained by Kavita Ramdya in her book Bollywood Weddings. These models are diametrically opposed. Love marriage will often involve a whimsical and incidental meeting followed by months and often years of dating. The arranged marriage excludes dating altogether and rarely allows for more than one meeting before the wedding day. When the boy and girl, words used to describe prospective marriage candidates despite their age, profession, or education, meet for the  ¬Ã‚ rst time, it is usually in a highly-regulated environment where both sets of parents sit in the same room accompanied by supportive extend ed family members. A wedding follows shortly thereafter, making it the second time the couple is allowed to see each other and after which the husband and wife embark on years of dating or getting to know one another without the nagging possibility of rejection. In the middle class, often family members stay on a lookout finding a suitable match, or a number of suitable matches. Then, the families meet to see if things work out. Long before this happens, though, the young men and women are carefully vetted for likes and dislikes, traits in common, complementary characteristics, and any other information that can be discovered and deemed relevant. Often, the process is much more informal, with the families in the community already knowing much about each other, and having already decided what could be potentially good pairings, and which may well be disastrous. The two opposed models of marriage are negotiated by the present generation as observed by Kavita Ramdya. Her examination led her to discover a middle path, which she called arranged meetings. Arranged meetings is an already negotiated and well-established third model for marrying. The second generation uses this method to  ¬Ã‚ lter out prospective marital candidates who do not have the right ethnic, religious, linguistic, and regional traits desired by their parents. In this way, neither arranged nor love marriage are excluded and the needs and desires of both generations are respected. The  ¬Ã‚ rst generation is still involved in  ¬Ã‚ nding a suitable partner for their child, whether through introductions by family and friends, or placing an ad on-line or in a newspaper. Additionally, candidates who do not come from the same religious sect, speak the desired dialect are cast away before a set of eligible prospects are considered. (Ramdya) Prevalence of Arranged Marriages Family forms the building block of a society. Human beings in turn follow the standards and norms set by the society to lead a perfect life. But everything is prone to change and so are the values and standards set by a society. In the same way, the ways of getting married are changing at a noticeable but slow pace. East is known for its traditions. Many countries in the East have been practicing arranged marriages since long. It is a known fact that love marriages are more common in the west than in the eastern countries. In Pakistan, marriages are most of the time arranged by family members. The reason is that the Pakistani society preserves family continuity through arranged marriages. collectivist societies like Pakistan prefer group decision over an individual one so marriages are a family affair rather than an individual one, and children are brought up to expect arranged marriages. It is seen that children can have veto power in few families but normally it is expected that the parents and other family members should commence and settle on the matter. In this society, marriage is not merely based on love relationships but family economics and social needs play a great role. Changing Trend of Marriages A couple of decades ago arranged marriage was the only known way to get married. But today it is not so. We see many Pakistani girls  and guys marrying by their own choice instead of that of their family. Love marriages are becoming more and more acceptable. Most of the marriages are arranged in Pakistan but some of the marriages are also based on love. Love marriages have been taking place in Pakistan in the last few years with the influx of western cultures and invasion of electronic media. Due to family obligations the trends of compromising and striving to sustain relationships have become the hallmark of eastern culture. However, this fact could not be denied that these trends are eroding day by day. People realize that the traditional system of totally arranged marriages needs to be adjusted. Partially arranged and partially love marriages are supported by the state religion. Today the exposure to various stimuli through the media has increased awareness. The improved education system could also be held responsible for this change. As compared to the previous years, the literacy rate among the Pakistani Women has increased by leaps and bounds over the past couple of decades. Education gives exposure and a sense of enlightenment. Women have become opinionated and smart. Many young women are given the right to exercise their choice in choosing a partner and the family members accept and support their decision. Dating agencies are emerging and proclaiming that although compatible partners inclined to marriage cant be picked off a supermarket shelf, they can be found on a website. Most work on the false assertion that a good profile and an insignificant  financial investment  is the only obstacle standing between you and the love of your life. If they are to be believed, a couple of cheesy emails can determine your compatibility. In a typical electronic dating set-up, the average person role plays in a desperate bid to make an impression.   It seems that love marriages are trending but we cannot deny the fact that the practice of an arranged marriage still heavily prevails in our society. Many times, the young individuals prefer not to take the decision themselves and they rely upon the family to find the best match for them. Gender Interaction The gender interactions part focuses on the evolving nature of interactions between male and female students and the resultant effect of this change on their marriage choices. Title: Student Attitude toward Mate selection in a Muslim Society: Pakistan Author: Henry Korson Journal: (Journal of Marriage and Family, Vol. 31, No. 1 (Feb., 1969), pp. 153-165) The study was conducted on 765 participants in two universities of Pakistan (University of Karachi and University of Punjab) and provides a treasure trove of vital insights into how marriage was viewed by students in urban Pakistan 40 years ago. The study results showed that atleast a quarter of respondents believed that the choice of life-partner should be left to them, while another quarter wanted their parents to consult them before making the final decision. This showed that over 50% of the respondents in that era wanted to have a say in the final decision of their life-partner. Another question that was asked was if the respondents would make a completely independent choice when it comes to marriage to which only 3.8% respondents replied positively. 17.1% female respondents from Karachi and 16.7% female respondents from Lahore also believed that their parents would arrange their marriage without consulting them. This is in contrast to the 45% female respondents from Karachi and 52% female respondents from Lahore who said their families will accept their opinions on the life-partner. Keeping in mind that these are graduate students from the 1960s when education for women was still at a nascent stage in Pakistan, they can only be classified as a minority. The women belonged to wealthy, forward-thinking families who were amongst the first to educate their daughters and thus had a progressive mindset. They were open to the idea of their daughters having a say in their own marriage decision but were not yet willing to accept their daughters to have complete cont rol over the decision. This is reflected by the fact that only 9.8% of female students from Karachi and 6.3% of female students from Lahore believed that their families would accept their decision of marriage if it was their own personal initiative. One of the most interesting statistic provided by this study revealed that upto 30% of the sample believed that meeting ones spouse before marriage was unnecessary. Females from Karachi (44%) and Lahore (47%) showed a great liking to this option thus showing confidence in their parents ability to choose the right spouse for them. This mindset is unthinkable amongst most contemporary university students of Karachi and Lahore who are more independent compared to their counterparts of yesteryears. The combination of higher education, globalization and media local, Bollywood and western has resulted in a mindset where the choice of life partner is no more the sole domain of the individuals parents. Moreover, the need to meet the prospective spouse whether alone, with mutual friends or with family has become paramount before the final decision is made. Students today believe that couples should have understanding and this can only be gauged if there is some level of interaction before the marriage. The above mentioned statistic was further reinforced when the students were asked about the optimum length of time for knowing ones future spouse before marriage. Although a quarter of the respondents did say that knowing ones future spouse for about 6 months is necessary, the majority of these respondents were male. 34.5% of female respondents from Karachi and 27.1% of female respondents from Lahore were of the view that there was no need to know ones spouse before marriage again indicating confidence in their parents ability to choose a spouse who was appropriate for them. The conclusions that Korson derives are insightful and can be used to explain todays phenomena of how traditional arranged marriages are wearing away. Korson says that because most families live in extended households, the presence of senior members of the family prevent any young student from initiating any change which runs counter to the belief systems held by the senior members. Uncles, aunts, grand-parents ensure that the parents conservative view is supported and reinforced within the family. This is primarily because of the belief that if one person is given leeway in deciding their marriage decision, others in the family will follow suit, thus creating disorder and depriving the senior members of their authority. Korson further states that male respondents showed greater self-assurance and liberality in their responses whereas majority of females favoured conservative options. This is probably because of both males and females already understanding their own personal situations. He believed their answers on what they believed will happen with them with respect to marriage were based on the experience of someone close (sibling, cousin, friend) who had already been married and the respondents belief that their marriage will be conducted in the same manner because they belonged to the same caste, class or family. The last and most notable finding that Korson reveals is that the Pakistani university system is based on Western education and that in the race to achieving higher education (and resultant higher social standing), people are bound to be in touch with Western values and principles and to be influenced by them. The mindset of collectivism that is the root of traditional arranged marriages where it is popularly said that families marry each other will gradually and eventually be trumped by the Western ideal of individualism students will begin to make their marriage decisions based on their own personal liking instead of following age-old conservative customs entrenched in their baradaries . Today this mindset of individualism has taken hold in the mindset of urban educated youth who are striving to ensure that their decision be respected and upheld when it comes to marriage. The Western education system in combination with media (primarily progressive and romantic Bollywood films of the last decade and a half) have led the youth to question the conservative practices that were previously held with much respect. Title: Attitudes of University Students from India Toward Marriage and Family Life Authors: Vicki T. Davis and Raghu N. Singh Journal: International Journal of Sociology of the Family 1989, Vol. 19 (Autum) : 43-57 In this research, 83 Indian students in Texas Universities were asked about their opinions on marriage and family life. The report says that many social institutions in India have faced constant and gradual change. In India, the family is a very sacred institution and ranks second in importance after religion (Rao Rao, 1975). Many researches have been conducted to explore the impact of higher education on family patterns. When people go abroad to study, they experience greater freedom to make their own decisions and are no more bound by the controls of their families, and develop individuality, which may affect all family patterns of dwelling (Ross, 1961). In Rao Raos study (1976), 65% college students preferred nuclear families as compared to 35% supporting joint families. A study by Sharma and Shriram (1979) surveyed 25 newly married Indian couples about their opinions on the selection of marriage partners. The importance of interaction with their future partners was stressed by 80% of the respondents. These couples believed it was necessary to meet, socialize with, and have the opportunity to truly get to know the potential marriage partner. The majority of the couples also thought that the main choice in the selection of the marital partner should be made by the individuals, with consent of the parents. When the same kind of questions were asked of graduate students in Pakistan in 1969, 65% believed it was important to meet and know ones potential spouse before marriage. 30% of the respondents believed that there was no need to meet the future spouse, thus indicating their confidence in their parents ability to find them a suitabl e match (Korson, 1969) Author: Lord, Keelin (2007) Title: Romantic Love vs. Marriage: A Psychoanalytic Approach, Journal: ESSAI: Vol. 5, Article 30. The research by Keelin Lord questions and critcizes Western countries for promoting the concept of love marriage and explains the reasons behind the failure of love marriages and the rising number of divorces in America. Although there are many reasons why Pakistanis oppose the concept of love marriage including difference in social status between families, loss of parental authority and conservative mindset, the fact that love marriages lose their charm soon after the wedding is also an important factor. The writer says that the vehicle for promoting romance in American culture is its cinema industry. Romantic love has been portrayed in visual arts of western culture for centuries, such as operas, plays, dramas, paintings and films. Although these arts directly influence culture, most view art as an illusion as well as an escape from reality. Yet Americans still believe that romantic love is tangible and serves as a solid base for marriage. The writer further goes on to say that instead of taking romantic love as granted, it should be questioned and its mistakes should be learned from otherwise it will continue to be the cause of failed marriages. The writer conducted scientific tests on a number of participants to explain how the concept of love holds in an individuals mind. The tests revealed that romantic love is associated with higher levels of dopamine being released to the brain resulting in increased energy, higher motivation to acquite rewards and feelings of ecstasy things that people relate to romantic love. However, with time the feelings of romance fade away because of increased levels of the hormone oxytocin. Keeping these findings in mind, when romance is a base for marriage and attachment, the romance fades shortly after vows and the craving for a new romantic relationship evolves. In realizing this, one would begin to question why peoples now look for romance to provide them with a happy marriage. Primary Research Methodology Focus Group Interview Survey The survey sample was 66, with the age group being 17-26 years. 31 males were part of the survey and 35 females. This is the data that was obtained for whether the sample people thought there has been an increased acceptance of love marriages in our society. Do you think there has been an acceptance of love marriages in our society? Frequency Percent Cumulative Percent Yes 55 83.3 83.3 No 11 16.7 100.0 Total 66 100.0 83.3% of the people (55 people) felt that there has been an increased acceptance of love marriages in our society and 16.6% (11 people) did not feel so. Of the 55 people who felt there was an increased acceptance, 28 were females and 27 males. And there was no correlation between gender and their opinion regarding acceptance of love marriages though, as analyzed by the Pearson correlation. When asked about whether Bollywood has played a role in the increasing number of love marriages amongst youth in Pakistan, 71.2% of people felt that it has had a role to play (47 people). Of these 47 people, 22 were males and 25 were females. Do you believe Bollywood movies have a role to play in the increasing number of love marriages amongst youth in Pakistan? Frequency Percent Cumulative Percent Valid Yes 47 71.2 71.2 No 19 28.8 28.8 100.0 Total 66 100.0 One person said As far as I have seen, Bollywood movies have created this fantasy-like image of love marriages in the minds of youth and lead to our youth to aspi

Managing Capability Nandos | Executive Summary

Managing Capability Nandos | Executive Summary This report aims to describe and evaluate capabilities it will use the resource based view to examine them in more detail and the importance of them. After this the report will then evaluate Nandos resources and capabilities and will discuss ways in which these may possibly lead to a competitive advantage. Subsequent to this it will go on to divulge using an assortment of analytical frameworks associated with Nandos to investigate in more detail the competitive advantage they have over their competition. After this it will ascertain how the management of Nandos is able to develop and manage these capabilities. Introduction This report will be based around Nandos the restaurant chain. Nandos whose food, along with wacky advertising campaigns has captured the hearts of thousands of beloved customers. The origins of Nandos can be traced back to South Africa where the first restaurant opened in 1987, with Portuguese style food an ingrained idea within the business; basing their menu around chicken has afforded them the chance to gain a substantial stake in their chosen market. It has had rapid expansion overseas seeing triumph in many of the 25 countries they operate, although it has not been successful everywhere they laid their eggs.(REFERENCE IN HERE) In order to comprehend the strategy as well capabilities the companies possess, it is essential to look at all the pieces of the Nandos puzzle, this report will do this by drawing on real life examples of how Nandos have utilised resources and capabilities, in addition will be using analytical frameworks to support findings and present further understandin g. Resource Based View The resource-based view of strategy conjoins both resources and capabilities together; Grant states that it is the principle foundations of strategy along with correct understanding and implementation of these are a firms key basis to profitability. (Grant 2007) Grant deems it important to distinguish between resources and the capabilities of a firm; resources are, The productive assets owned by the firm whereas capabilities are what the firm can do (Grant 2007). One of the foremost sources of profitability is the competitive advantage in their market. Establishing competitive advantage can be achieved through the development and deployment of resources and capabilities, and thus has become the primary goal for strategy.'(Grant Page 124). Furthermore, Grant affirms that if external environment alters drastically, this in turn could have an effect on the markets an organisation operates in; then the need for a secure basis of internal resources and capabilities becomes of utmost importance an formed within the firm (Grant Book). This strong assortment of resources and capabilities can utilised by the firm to exploit different markets in which these capabilities could complement, instead of allowing the market in which they operate along with customers to control how they should go about doing business, further supporting the significance of competitive advantage in a market, as well as the need to possess this. Resources and Capabilities as a source of Competitive Advantage Resources are defined as the productive assets of a business, these consist of; tangible, intangible and human (knowledge) (Grant, 2007). Resources and Capabilities as Sources of Competitive Advantage Resources are the productive assets, both tangible (such as cash and plant), intangible (technology, reputation culture) and human (skills, capacity for communication and collaboration motivation), in control by the organisation (Grant, 2007). Capabilities are defined as the things a firm can do (2007, p. 130-131), these capabilities are formed by a firms capacity to utilize and deploy their resources for a desired end result Helfat Lieberman (2002 p.135 quoted in Grant 2007). The RBV of competitive advantage is born out of having a capability or resource that has the two following conditions; scarcity relevance. This advantage however is only useful and an advantage if it is durable, hard to imitate and replicate by other firms (Grant, 2007). In Appendix 1 the tangible, intangible and human resources of JnJ have been identified, along with their capabilities, I shall now define what a core and dynamic capability is with some brief examples of JnJs taken from the resources in the table. I shall then go on to show linkages further and ultimately if and how they provide JnJ with a competitive advantage, part 3 will go onto use frameworks to evaluate further if these are in fact sustainable. The nature of competitive adavantage is formed through a cpabilitiy or resource which have two conditions; there relevancy and there scarcity The benefits from these resources and capabilities depend not just on their ability to establish a competitive advantage but also on how long that advantage can be sustained (BOOK 2009). Also it is dependent on how resilient the companys capabilities are; as well as if a rival company can replicate specific capabilities. Figure 1 shows Nandos tangible,intangible and human resources identified, as well as their current capabilities, this report will now analyse what a core and dynamic capability is, including certain relevant examples related to Nandos from Figure 1. After this, I will go onto discuss in depth the linkages and how they may be able to present Nandos with effective advantage over their competition, following on from this, I will then utitlise certain frameworks and analyse and determine whether these are sustainable or not. Grant believes that Capabilities can be defined as either core or distinctive, the differences between the two is; core are the main fundamental capabilities a company must possess to compete in the chosen market, whereas distinctive are the capabilities which spate the company from the competition, giving them a competitive advantage.(Grant 2009) I will now look further into Nandos capabilities with reference to their capabilities in forms of core an distinctive. It is capability that is the essence of superior performance In order for Nandos or any company for that matter, to stay in a position that is both profitable and sustainable is a very hard thing to do. The understanding of their capabilities is imperative, as if they dont understand them then they could find themselves out of the market or even worse out of business. Capabilities are split up into to two different sectiosnScarce capabilities are widely available in their chosen market. If this is the case in Nandos chosen market then there is no real chance of gaining a larger segment of the market, they have to give the customer something new and different. Another factor is the relevance of these capabilities to the company and chosen market, as if they are not giving the target market what they want then they cant stay competitive, for example Nandos is established as a company who solely serve chicken, but whats to say people go and eat at KFC as they just serve chicken as well, its the taste and quality of the food which keeps customers coming back, as well as Nandos unique restaurant experience which is relevant to the market they are in. When we apply this to Nandos they have a specific part of the company that they focus everything around and thats chicken, they only serve chicken on their menu, which in some areas could be beneficial as no other large company is dedicated to that type of menu other than KFC but theres is Kentucky fried chicken and they are a fast food restaurant rather than Nandos established as a restaurant/takeaway so they arent in direct completion in their markets. Conclusion Acquisition of GBK over the last few months Tangible Intangible Human Financial (Cash, securtities, borrowing capacity) Physical (plant, equipment, land, mineral reserves) Technology (patents, copyrights,  trade secrets) Reputation (brands, relationships) Culture Skills/Know-how Capacity for communication and collaboration Motivation Organisational Capabilities Strategy Industry key factors success factors Competitive Advantage Nandos SWOT Analysis Strengths Advantages of proposition? Capabilities? Competitive advantages? USPs (unique selling points)? Resources, Assets, People? Experience, knowledge, data? Financial reserves, likely returns? Marketing reach, distribution, awareness? Innovative aspects? Location and geographical? Price, value, quality? Accreditations, qualifications, certifications? Processes, systems, IT, communications? Cultural, attitudinal, behavioural? Management cover, succession? Weaknesses Disadvantages of proposition? Gaps in capabilities? Lack of competitive strength? Reputation, presence and reach? Financials? Own known vulnerabilities? Timescales, deadlines and pressures? Cashflow, start-up cash-drain? Continuity, supply chain robustness? Effects on core activities, distraction? Reliability of data, plan predictability? Morale, commitment, leadership? Accreditations, etc? Processes and systems, etc? Management cover, succession? Opportunities Market developments? Competitors vulnerabilities? Industry or lifestyle trends? Technology development and innovation? Global influences? New markets, vertical, horizontal? Niche target markets? Geographical, export, import? New USPs? Tactics surprise, major contracts, etc? Business and product development? Information and research? Partnerships, agencies, distribution? Volumes, production, economies? Seasonal, weather, fashion influences? Threats Political effects? Legislative effects? Environmental effects? IT developments? Competitor intentions various? Market demand? New technologies, services, ideas? Vital contracts and partners? Sustaining internal capabilities? Obstacles faced? Insurmountable weaknesses? Loss of key staff? Sustainable financial backing? Economy home, abroad? Seasonality, weather effects?   Department Areas  Finance Return On Investment   Cash Flow   Return on Capital Employed   Financial Results (Quarterly/Yearly) Internal Business Processes  Number of activities per function   Duplicate activities across functions   Process alignment (is the right process in the right department?)   Process bottlenecks   Process automationLearning GrowthIs there the correct level of expertise for the job?   Employee turnover   Job satisfaction   Training/Learning opportunitiesCustomerDelivery performance to customer   Quality performance for customer   Customer satisfaction rate   Customer percentage of market   Customer retention rate   http://www.businessballs.com/balanced_scorecard.htm

Women Athletes in Male Dominated Sports Essay -- Argumentative Persuas

Women Athletes in Male Dominated Sports Sports are one of the great American pastimes, but the reality is that sports have encouraged a very distinct separation between males and females in the American society. The attitudes acquired through sports are learned on the field and breached into the real world to create conflict between the sexes. The issue of gender inequality goes far beyond the sports world, yet male dominated organizations form and support the sexes. With this separation of sexes we see the social and cultural strain on athletes participating in opposite gender sports, because society frowns on women participating in male dominated sports. The idea of sports has always had a masculine viewpoint. It has been seen as unladylike for women to participate in certain sports, let alone those that are primarily male dominated. The American public's fascination with female athletes: tennis players, professional golfers, figure skaters, and gymnasts. These sports demonstrate the agility and elegance "natural" to women and although athleticism is clearly a major aspect of these sports, the individual stars are known, culturally at least, more for their "feminine" attributes like self-sacrifice, glamour and grace (Banet-Weiser, p 411). From the article by Banet-Weiser, we can see society and the general public recognition of female athletes has always been based on their feminine beauty and objectified status, rather than their athletic skill, which becomes a major drawback to women's sports and probably a significant reason why many women drop out of sports or have their sexual identity questioned when they try to prove their ath leticism. This issue of gender in sport occurs all the time. The masculine assumptions... ... everyone whether male or female needs to incorporate physical activity into their daily routine. Without it, we would not be able to participate in athletics and so what if a woman sweats when she is at the gym or playing a sport, it just proves that she is working hard at what she is doing. So, in a way, sport provides communication with other people and improves the physical, mental, and emotional well being of a woman. I think we just need to look past the negative aspects of sport because they can distract athletes or even cause them to stop doing what they love. Pressure from society to fit in is always a hard thing to deal with and those that overcome the remarks from audiences or critics become the better person in the long run by looking back at what they accomplished and what they have left behind for many other generations of women athletes to follow.

Artificial Intelligence and Angelology :: Technology Science Computers Essays

Artificial Intelligence and Angelology ABSTRACT: Recently, as I have become more computer-literate, I have noticed some interesting parallels between computer mechanisms and Aquinas’ metaphysics of angelic faculties. The present essay expands on some of the analogies which Aquinas himself, though no proponent of AI theory, might have found interesting. One of the philosophy newsgroups on the Internet is entitled "comp.ai.philosophy." This group features constant variations on questions such as: how close can artificial intelligence (particularly computers) approximate to human consciousness? is free will reducible to neurological mechanisms? and so forth. From my unscientific sampling, I would estimate that the clientele of this newsgroup is about evenly split between those who tend towards a reductive materialism, and those who maintain that consciousness or some element in human consciousness is not reducible to neural structures or functions. So the classical "Hobbes vs. Berkeley" debate continues on into the twenty-first millennium. One of the problems facing those who theorize about the independence and irreducibility of consciousness is the fact that it is difficult to conceptualize the essence of consciousness, as distinct from the sensations, feelings, etc. that are often associated with consciousness. Here we are definitely getting into abstract metaphysics. Medieval philosophers such as Aquinas, Duns Scotus and Suarez faced up to this challenge with a little help from Christian revelation, by speculating about the characteristics and functions of angels or "separate substances," who would presumably exemplify consciousness in its "pure" state, without any distracting admixtures. In this paper, I would like to take a look in particular at Aquinas' theory of separate substances. With this theory, we bypass the old question of the reducibility or irreducibility of consciousness to its material conditions, and we also find, in my opinion, some interesting analogies to contemporary computer technology. It would be too much to hope that these analogies, even if substantial, would instigate a revival of interest in Angelology among technophiles. But those interested in the metaphysics of the mind-body problem may find them suggestive: Microprocessors and Angelic Self-possession: The microprocessors of today's computers are integrated circuits which contain the CPU on a single chip. The latest developments, with variable clock speeds now often exceeding 200 MHz, include Intell's Pentium chip, the IBM/Apple/Motorola PowerPC chip, as well as chips from Cyrix and AMD. The CPU chip is the heart of the computer; only memory and input-output devices have to be added. A small fan might be added on top of the fastest chips to cool them down, but in the chip itself there are no moving parts, no complex gaps between the movement being imparted and that which imparts the movement.

Brand Hierarchy

Smart Principles for Designing a Brand Hierarchy We all know the recession has drastically impacted consumer behaviors, but we may often overlook its direct impact on brands themselves. The recession has changed the way marketers manage their brand portfolios as they try to do more with less. As such, marketers are taking a closer look at how then can stretch existing brand equity across a greater number of products, often taking a parent brand/sub-brand approach. We generally see four different sub-brand approaches, each with their own benefits and risks: 1.Driver Sub-Brands—A driver sub-brand encourages purchase decisions by representing the value proposition central to the user experience. The parent brand endorses the sub-brand—but it’s the sub-brand that defines the consumer’s perceptions of the product or service experience and proves the primary driver motivating consumer purchase. Take the Gillette Fusion razor. Customers primarily buy the technolo gy and performance represented by the Fusion name. Fusion is the driver brand while Gillette creates a strong identity and clear visibility for the Fusion name on the package, retail rack, and in consumers’ minds.As you might guess, if a company is going to take a driver sub-branding approach, then the sub-brand must generate real response to its entrance in the marketplace to succeed. 2. Co-Driver Sub-Brands—In this case both the parent brand and the sub-brand play major—and often equal—roles in driving the consumer toward purchase. Cadillac’s Escalade sub-brand serves as a co-driver, as both the Cadillac and Escalade brand names influence consumers’ purchase decisions.While consumers associate the Cadillac name with top of the line performance, quality, and style, the Escalade brand compounds that image with the slightly rugged, more versatile associations of a sports utility vehicle. Cadillac marketers leverage the associations of both dr iver brands to command market share in the luxury sports utility vehicle category, as well as generating significant demand for the car among Hollywood celebrities attracted to the brand’s image of luxury, spaciousness, and high performance versatility.In co-driver situations, both the parent brand’s image and the sub-brand’s image together influence the consumer’s decision to purchase the product. 3. Descriptor Sub-Brands—As implied by the name, descriptor brands communicate a distinct facet of the parent brand—e. g. , class, feature, target segment, or function. For example, Purina Dog Food maintains the following descriptive brands: Dog Chow, Beneful, Hi-Pro, Fit & Trim, Puppy Chow, Moist & Meaty.Purina Brand Dog Food uses these descriptor sub-brands to more accurately meet the needs of individual dog breeds and the specific demands of dog owners. While all dogs could potentially thrive off of the standard Puppy and Dog Chow offerings, de veloping specialized offerings for overweight, high-energy, and performance dogs defined by a unique descriptor sub-brand enables owners to better address their dog’s perceived needs. This is the riskiest category of sub-brands, as the sub-brand may cannibalize the parent brand if insufficient differentiation among the varieties exists. . Endorsed Sub-Brands—In an endorsed sub-brand relationship, the parent brand often provides support and credibility to the sub-brand’s claims in a more explicit fashion than co-drivers (for example, Rugby by Ralph Lauren). Endorsed sub-brands provide consumers with assurance that the sub-brand will deliver on the same value propositions as the parent offering, enabling the parent brand to expand into new markets while retaining its established brand position.

Exam Study Sheet

ERP as a business concept resounds as a powerful internal information management nirvana: Everyone involved in sourcing, producing, and delivering the company's product works with the same information, which eliminates redundancies, reduces wasted time, and removes misinformation. Learning outcomes Buffet believes In focused Investing and believes that all Investors should look at five features: 1 . The certainty with which the long-term economic characteristics of the business can be evaluated 2.The certainty with which management can be evaluated, both as to Its ability to realize the full potential of the business and to wisely employ Its cash flows 3. The certainty with which management can be counted on to channel the reward from the business to the shareholders rather than to Itself 4. The purchase price of the business the degree by which an investor's purchasing-power return is reduced from his gross return Innovation finding new six best practices of innovation: Find your re levant edgeAssemble innovation hothouses Reward risk takers Celebrate diversity Look around Mix practitioners and developers Social entrepreneurship â€Å"going green† Social Responsibility implies that an organization has a responsibility to society. Corporate Policy reflects the position a company takes on social and political issues. Sustainable or â€Å"Green† describes systems that minimize damage to the environment. Energy consumption Breakdown of Power Usage in The Typical Data Centre For convenience and to allow for automatic updates and backup, the majority of computer equipment is never completely shut down.It draws energy 24 hours a day. Percentage lighting/humidifier power distribution units air conditioners Ups IT equipment Chiller E waste State – Refers to discarded, obsolete or broken electronic devices Sustainable IT disposal – Refers to the safe disposal of MIS assets at the end of their life cycle Electronic Product Stewardship Canada (P EPS) – an industry association that educates and encourages e-waste control Recent International laws restrict the use of hazardous materials.Moor's Law has made technological devices smaller, cheaper, and faster, allowing more people from all income levels to purchase computing equipment. This increased demand is causing numerous environmental issues. State refers to drives, printer cartridges, cell phones, pods, external hard drives, TV's, Vicars, DVD players, microwaves, and so on. Greener IT four ways to save energy in a data center use outdoor air for cooling, cool high density areas, use low power processors, incorporate cooling solutions, use server power management, buy high efficiency power supplies, use overpopulation to consolidate servers.Organizational social networking three types of social networking an organization can implement: Passive search Boomerangs Marketing networks Passive Search?Finding people for new Jobs who are happy and productive where they thro ugh business networking sites. Boomerangs?Former employees returning to old Jobs. Marketing Networks?Using business networks for marketing and events It's a whole new world Virtual World?An Internet resource which presents a AD virtual community.Virtual Organizations- interactive web presence for businesses and their customers. Virtual Workforce?working from home†¦ Or anywhere via the Internet. Tools for virtual workforce Mobile commerce (m-commerce)?ability to purchase goods and services through a mobile device. Telemetric?The blending of wired and wireless technologies for efficient electronic communication. Electronic tagging?the use of RIFF (radio frequency identification) and other systems to identify and tracking digital assets. 4. Enterprise resource planning ERP Failures Blaming ERP for the â€Å"pickle† that many a company who has implemented ERP find themselves in is like blaming the CAD package for a poorly architect building. Like just about everything else, IT-enabling business processes is about using the right tools for the right reasons and executing. Enterprise resource planning – integrates all departments and functions hat employees can make enterprise-wide decisions by viewing enterprise-wide information on all business operations.ERP powerful organization tools Solution to incompatible applications. Addresses the need for global information sharing. Avoids the expense of fixing legacy systems. Legacy Systems?are older computer technology still in use. Functional Systems? serve single business departments or units. Legacy systems exist in personal computing as well as business Enterprise resource planning system Core data – employees, orders, customers, sales, inventory 0 ERP- Global sales report,Global manufacturing report, global shipping report Enterprise resource planning – ERP Integration Data Flow At the heart of all ERP systems is a database; when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system â€Å"Data† (centre) – purchasing, accounting and finance, manual resources, inventory, manufacturing, marketing and sales Why do organizations need integrations, if an ERP system contains one database that connects all applications together?Most organizations operate functional â€Å"silos†, and each department happily has its own systems A company might purchase an ERP and then all of the functional silos would be on one system; however, this doesn't happen very often in the real world ERP automates business processes such as order fulfillment?taking an order from a customer, shipping the purchase, and then billing for it.With an ERP system, when a customer service representative takes an order from a customer, he or she has all the data necessary to complete the order. When one department finishes with the order, it is automatically routed via the ERP system to the next department. To find out here the order is at any point, a user needs only to log in to the ERP system and track the order.ERP systems automate business processes, for example, order fulfillment When a Customer Service Representative (CARS) takes an order from a customer, he or she has all the information necessary to complete the order (the customer's credit rating and order history, the company's inventory levels, and the delivery schedule) ERP process flow Data†centre† sales/quote/order warehouse pack/ship receiving returns accounting/billing/payment The organization before ERP Multiple functional systems provide support for the unique needs of each department but cannot be integrated across the enterprise document management, workflow, ERP †¦ Etc The organization after ERP – A central processing needs of each functional unit while having data sharing across the enterprise. Core and extended ERP components The evolution of ERP ERP – material planning, order entry, dist ribution, general ledger, accounting, shop floor control Extended ERP – scheduling, forecasting, capacity planning, commerce, warehousing, logistics ERP -II – project management, knowledge management, workflow management, customer relationship', human resource, portal capabilityCore ERP components – traditional components included in most ERP systems and they primarily focus on internal operations Extended ERP components – extra components that meet the organizational needs not covered by the core components and primarily focus on external operations Core and extended ERP components Three most common core ERP components 1 . Accounting and finance 2. Production and materials management 3.Human resource Accounting and finance ERP component – manages accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management Dudley Harley-Davidson Canada (D DCD), the exclusive Canadian distributor of Harley- Davidson motorcycles, has improved inventory, turnaround time, margins, and customer satisfaction?all with the implementation of a financial ERP system Production and materials management ERP component – handles the various aspects of production planning and execution such as demand forecasting, production scheduling, Job cost accounting, and quality control Production and materials management ERP components This figure displays the typical ERP production planning process. The process begins with forecasting sales in order to plan operations. A detailed production schedule is developed if the product is produced, and a materials requirement plan is completed in the product is purchased. Sales forecasting 0 operations planning 0 detailed scheduling/production, 0 materials requirement planning, purchasing Human resource ERP component – tracks employee information including payroll, legal requirements of multiple Jurisdi ctions and tax authorities Extended ERP components include: Business intelligence Customer relationship management Supply chain managementE-business Business intelligence – describes information that people use to support their decision-making efforts Customer relationship management – involves managing all aspects of a customer's relationships with an organization to increase customer loyalty and retention and an organization's profitability Supply chain management – involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability E-business – means conducting business on the Internet, not only buying and selling, but also Irving customers and collaborating with business partners Primary Users and Business Benefits of Enterprise Applications Enterprise application – CRM, SCM, ERP Examples parenting/CSS, customers, accosting finance logistics Integration Middlewar e – Several different types of software that sit between and provide connectivity for two or more software applications The connected corporation Enterprise application integration middleware – Takes a new approach to middleware by packaging commonly used applications together, reducing the time needed to integrate applications from multiple vendorsMeasuring ERP Success with the Balanced Scorecard The Four Primary Perspectives of the Balanced Scorecard Vision and strategy – financial, internal business process, customer, learning and growing Balanced Scorecard is a measurement system whose objective is to clarify the company's vision and strategy and translate them into actions. It starts with the customer†¦ Customer?†To achieve our vision, how should we appear to our customer. Financial -â€Å"To succeed financially, how should we be appearing to our shareholders? † Internal Business Process?†To satisfy our shareholders and customers, wh at business processes must we excel at? † Learning and Growing?†To achieve our vision, how will we sustain our ability to change and improve? † Successful ERP projects share 3 attributes 1. Overall fit Off the rack Off the rack and tailored to fit Custom made 2.Proper business analysis Successful companies spend up to 10 percent of the project budget on a business analysis 3. Solid implementation plans A plan is needed to monitor the quality, objectives, and timeliness Overall fit This refers to the degree of gaps that exist between the system and the business process. A well-fitting ERP has no major process gaps and very few minor ones Proper business analysis The best way to determine which fit strategy is right is to conduct a thorough business analysis. Successful companies normally spend up to 10 percent of the project budget on a business analysis. Chapter 5 Operations Management and Supply Chain Management SECTION 5. – OPERATIONS MANAGEMENT â€Å"ove r view† Operations Management Fundamentals MM in Business Information Systems' Role in MM SECTION 5. 2 – SUPPLY CHAIN FUNDAMENTALS Supply Chain Fundamentals Information Systems' Role in the Supply Chain Supply Chain Management Success Factors Future Supply Chain Trends Operations management foundations Production management describes all the activities managers do to help companies create goods. Operations management (MM) is the management of systems or processes that convert or transform resources (including human resources) into goods and services. A transformation process is often referred to as the technical core, especially in manufacturing organizations, and is the actual conversion of inputs to outputs.Operations management fundamentals Operations Involves the Conversion of Inputs into Outputs Example of Inputs, Transformation, and Outputs MM in business Typical MM activities include: Forecasting Capacity planning Scheduling Managing inventory Assuring quality Mo tivating and training employees Locating facilities Forecasting: Estimating demand for a product/service Capacity Planning: Determining the amount of space, equipment and throughput is needed to achieve the production targets. Scheduling: Determining when the production will occur. Managing inventory: Ensuring raw materials will be available on time and in place and that work in progress and finished goods have storage.Assuring quality: Ensuring standards are met through sampling inputs, in process work and outputs. Motivating and training employees: Appropriate pay, benefits, scheduling, and direction, supervision and instructions. Locating Facilities: Determining where to put production facilities and the cost effectiveness of near major markets or away from markets and close to transportation routes. Hierarchy of operational planning IS support for operations strategy depends on IS support for operations strategy depends on: Level of available technology. Skill level of workers. Degree of vertical integration, to what degree the suppliers are owned (or partnered) with the company. Extent to which outside suppliers are used.SUB Strategic Business Unit?is a stand-alone business under a corporate umbrella Strategic Planning?are the collection of decisions focus in doing the right things over a longer period of time MR. Systems?use sales forecast to make sure parts and materials are available Global Inventory Management Systems (SIMS)?locate, track and predict materials and components by installing GAPS in transportation vehicles Operational Planning and Control (POP&C)?deals with day-to-day operations. Competitive MM strategy Five key competitive priorities that can add value for customers: 1 . Cost 2. Quality 3. Delivery 5. Service 1 . Cost?key determinant in a customer purchase decision 2. Quality?product quality should reflect the exact requirements of a customer Process quality ensures a consistent error-free quality level.Several international quality met hodologies exist including Six Sigma Quality, SISSIES, IS014000, TTS, COMIC. An assignment for students is for individual students or groups to research one of these methodologies to see when they started and by whom; what objective is achieved and how; what prominent companies use them today and why; and what the advantages as well as disadvantages there are. 3. Delivery?fast and reliable 4. Flexibility?offering a wide variety of products to customers. Offering a choice of environmentally friendly products and services. 5. Service?New products revert to being commodities quickly. Often the distinguishing factor is the service provided by the supplier. M and the supply chain Supply chain consists of all parties involved, directly or indirectly, in the procurement of a product or raw material Supply chain management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total effectiveness and profitability. The four basic components of Supply chain management (SCM) are: Supply chain strategy Supply chain partners Supply chain operation Supply chain logistics Supply Chain Strategy. A company must have a plan for managing all the resources that go toward meeting customer demand for products or services. Supply Chain Partners – Companies chosen to deliver finished products, raw materials and services.Supply Chain Operations -Scheduling production activities, including jesting, packaging, and preparing for delivery. Supply Chain Logistics?product delivery process and elements including orders, warehouses, carriers, defective product returns and invoicing. A typical manufacturing supply chain: Supplier, storage, manufacturing, storage (finished goods), distribution, retailer, customer A typical service supply chain: Supplier, storage, service, customer SCM software can enable an organization to generate efficiencies within these steps different supply chain components. Impact of Efficient & Effective Supply Chain Management on Porter's Five ForcesEffective and efficient SCM systems can enable an organization to Decrease the power of its buyers Increase its own supplier power Increase switching costs to reduce the threat of substitute products or services Create entry barriers thereby reducing the threat of new entrants Increase efficiencies while seeking a competitive advantage through cost leadership â€Å"Organizations supply chain† Supplier power + 5. 2 Supply Chain Fundamentals Supply chain fundamentals The supply chain has three main links: 1 . Materials flow from suppliers and their â€Å"upstream† suppliers at all levels 2. Transformation of materials into semi-finished and finished products through the organization's own production process 3.Distribution of products to customers and their â€Å"downstream† customers at all levels Collecting, analyzing, and distributing transactional information to all relevant parties, SCM systems help all the different ent ities in the supply chain work together more effectively SCM has significantly improved companies' forecasting abilities over the last few years A Typical Supply Chain for a Manufacturer Supplier/supplies 0 suppliers manufacturer (transformation)Ã'Ëœ distributor retailers customer customer's customer They need to determine all areas and potential threats that make the supply chain vulnerable. For example, An unusually bad season in Australia causes the eucalyptus harvest to fall short of expectation production levels, which causes the price to skyrocket The factory in Lit, Pennsylvania, is destroyed by a fire One of its transportation ships sinks A hurricane causes one of its transportation ships to be delayed The five basic supply chain management components Plan – This is the strategic portion of supply chain management. A company must