Percy bysshe shelley Research Paper Example | Topics and Well Written Essays - 1000 words

Percy bysshe shelley - Research Paper Example The discussion becomes easy if a look at his poetic ideas is done first. Shelley is of the opinion that a poet is a moral teacher. He does not agree that a poet is merely an imitator. At the same time, he asserts that a poet is a creator, who not only creates but also provides ideas to the society, guides the people, and in a way teaches what should be done to improve one’s life. He rejects Thomas Love peacock’s remark that a poet is a â€Å"semi-barbarian†. He not only counters this negative remark about the poet but also declares that â€Å"Poets are the unacknowledged legislators of the world† (Defense). In his essay defending poetry, he explains the true role of a poet in his society and states that†Poetry turns all things to loveliness; it exalts the beauty of that which is most beautiful, and it adds beauty to that which is most deformed; it marries exultation and horror, grief and pleasure, eternity and change; it subdues to union under its li ght yoke all irreconcilable things† (Defense). Unlike Keats for whom poetry means beauty, Shelley finds poetry as a form of intellectual beauty. He treats politics, love, and nature on equal scale. He looks sometime melancholic, but his melancholy is closely related to his ideas. â€Å"Ode to West Wind† can be taken as an ideal poem to study Shelley as a poet and revolutionary. As a poem, it is very remarkable because in it the poet treats everything in nature as an instrument of melody. The poet becomes totally spellbound by the power of the wind, the cloud, the sun, the ocean, and all these in nature for him become the right subject for poetry. He is so much inspired that he prays, â€Å"Be thou, Spirit fierce, / My spirit! Be thou me, impetuous one!† (Ode). The poem deals with the regenerative power of nature. It praises how everything that is old and dead in nature is driven out to leave space for the birth of new and beautiful. In other words, it speaks abou t the likely situation in which the world has to exist with everything unwanted and decayed, if regeneration does not take place. The poet feels that this unfortunate situation is avoided in nature because of the support of the sweeping powers of west wind: â€Å"Thou, from whose unseen presence the leaves dead/ Are driven, like ghosts from an enchanter fleeing† (Ode). It is with similar spirit that the poet wants changes in the political situation in his society. However, he does not possess the sweeping powers seen in the west wind to drive out the old and conventional ideas in his society to pave the way for the new and creative ideas. That is how the poem becomes significant as an example of the poet’s political perspective. As Sydney Waterloo says, â€Å"He was a dreamer, but he never dreamed merely for the sake of dreaming; he always rushed to translate his dreams into acts† (Sydney). â€Å"Ode to the West Wind† shows how Shelley tries to translate his poetical and political dreams into reality. The poem, â€Å"Ode to the West Wind†, is in the form of a prayer. It is addressed to West Wind, and not to any particular God, as Shelley finds in the invisible power in nature what man generally finds in God. The political idea with which he was obsessed is identified with the power of the wind. Though he tried to impress his philosophical ideas upon the people through many pamphlets he found very poor response coming from the people. So he was disappointed.

Analysis to look at Red Bulls strategies

Analysis to look at Red Bulls strategies Red Bull has turned itself into a multinational company that offers a product that enhances the mind and the body. Their method of managing their internal and external situation and circumstances has become an interesting topic for many. Thus we conducted some analysis to look at Red Bulls strategies, and especially the international strategies. The external analysis was a mix of positive and negative observations, for example they have the advantage of the customer loyalty and the production cost, and however, they are in the territory of major players in the beverage industry which put them at risk. Nevertheless, the industry analysis and peer review helped to shed some light on Red Bulls external report, where we can see a substantial growth in the industry and Red Bull headship in the energy drink market. Through the internal analysis we observed that Red Bull leads a proactive approach towards their business by adopting conventional and unconventional methods to expand their horizons. Through the value chain model, we observed that Red Bulls internal marketing and sales strategies have shown ground breaking success on international scale. Moreover, the HR has accomplished to attract the right candidates to achieve the required goals, simple because they are young and know the young target market exactly. The generic strategy analysis of Red Bull has presented Red Bull a differentiated product within its market and a focused-differentiated product within the beverages industry. The norm is that any kind of differentiated products target few selected customers, however, Red Bull did become selective but became massively popular among the youth, and hence, they produce over 1 billion cans each year. The SWOT analysis they was conducted on Red Bull has crystallized some Weaknesses and threats. However, the Strengths and Opportunities outweigh the downside of Red Bull; moreover, the Weaknesses and Threats that Red Bull faces can easily be managed and fixed by Red Bull. We can safely conclude that Red Bull has adopted the right target market and the right method to communicate with the target market. More interestingly, we can see that Red Bull has adopted a product and especially a marketing strategy that can easily be copied to different counties and culture. In other words, it has spoken the language of the youth. History Background History A red cape is not always necessary to attract a bull towards you; nowadays it has become available in a can in the hypermarket, supermarket, grocery and the club near you. This all has become possible thanks to a visionary man called Dietrich Mateschitz, who is the discoverer, modifier, and introducer of the internationally famous drink, Red Bull. It all started in Hong Kong, in 1982, when Mateschitz was at the hotel bar sipping a famous local health tonic. While he was drinking he had a vision of marketing an Asian drink in the western countries. About two years from the vision, the Austrian Mateschitz teamed up with a Thai business man called Chaleo Yoovidhya to produce this product. Together they fiddled with the product, to take out the syrup nature of the product and make it fizzy. Canned in a silver and blue container, with a brand the shows two red bulls going head-to-head against each other, hence the brand was named Red Bull. (Red Bull Founder Rides Wave of Success) In 1987, the product was then taken to Austria where it had its first groundbreaking success in no time. In started going international in 1992, when they entered Hungary. Red Bull is currently active in over 100 countries, energizing the population and creating competition as they go along. One source mentioned that there are over 150 energy drink brands, however, all inferior to the mighty Red Bull (A REFRESHED CREW IS AN EFFICIENT CREW). With over 1 billion cans sold each year, Red Bull controls 70% of the worlds market share of energy drinks. Background Red Bull became strong when they created a high quality drink that is only made in Austria. Furthermore, all of its ingredients are synthetically made in pharmaceutical companies to grantee high quality and safety. Moreover, due to the ingredients of the product, it is said that Red bull (Red Bull FAQ): Improves performance Improves concentration and reaction speed Improves vigilance Improves emotional status Stimulates metabolism However, the main reason for the success of Red Bull is in its advertising style. Red Bull tends to spend very little on conventional or traditional marketing tools, like TV and Print ads. Their marketing strategy is usually out of the box and creative. Red Bull tends to be more active in sponsoring extreme spots and giving away samples in local events. Due to the fact that Mateschitz has been involved in Formula One racing for more than a decade, he used the events to draw attention to his brand. In addition, he sponsored the World Stunt Awards, an annual fund-raiser to help injured stunt workers (Red Bull Founder Rides Wave of Success). Moreover, some observers say that Red Bull uses the anti-branding method of advertising, where they broke the usual method of marketing and branding. Actually what they did was use the buzz marketing strategy or better known as word of mouth. With this strategy, they associated their brand with the youth culture and extreme and adventure-related spo rts, such as motor sports, mountain biking, snowboarding and dance music. Thus they targeted their brand directly to people from Generation Y, the so-called millennials: people born after 1981 who were believed to be cynical of traditional marketing strategies (A Look at a Key Feature of Red Bulls Business). The Buzz over Red Bull among the youth and their underground attitude has created Red Bulls reputation as the drink within that community. That is why Red Bull continues to use Viral marketing internationally, where the company would rather restrict the supply of Red Bull and not advertise it, expecting that growing numbers of target consumers to catch the bug and its reputation would spreads. Through this strategy, Red Bull has successfully captured 70% of the à ¢Ã¢â‚¬Å¡Ã‚ ¤1.6 billion market (A Look at a Key Feature of Red Bulls Business). External Analysis Porter Five Force Analysis The external analysis is one of the most important steps that a company should take to achieve to its goals and objectives. Moreover, for taking this step we should be aware of the essence of formulating competitive strategy which is related to company and its external environment. Also, we know that the relevant environment is very broad; encompassing social as well as economic forces, the key aspect of the firms environment is the industry or industries in which it competes. In addition, taking care of industry structure which has a strong influence in determining the competitive rules is very important because it includes the game as well as the strategies potentially available to the firm. Forces outside the industry are significant primarily in a relative sense; since outside forces usually affect all firms in the industry, the key is found in the differing abilities of firms to deal with them. Michael porter has offered a unique framework for make an easy way to analyze. Michae l Porters framework for industry analysis is described in his book Competitive Strategy (1980). In this book Porter claims that there are essentially five forces which determine the underlying structure of an industry. Rivalry among existing competitors, buyers, suppliers, potential entrants into the business and Threat of substitute products are those five forces which can have positive or negative effects on industry structure by making the industry more or less competitive. Potential Entrants In this case the potential competitors of red bull are soft drinks companies, which can produce energy drink with out adding bubbles. If the barriers of entry are high, it is difficult for potential competitors to enter the market. Three main sources of barriers to new entry: brand loyalty, absolute cost advantages, and economies of scale. Brand loyalty Due to the done research, innovation in creating new energy drinks, proper and profession advertisement, holding many special events and sponsorships, and having high quality for its products makes Red Bull as well known brand with a strong brand loyalty which is a barrier for any new entrant to enter the energy drink industry to compete with it. Cost advantage According to the Michael Porter, normally cost disadvantage is a big barrier for companies to enter an industry as new entrants because it can be cost advantage for existing companies in that industry. Also, companies with the help of cost advantages can compete and beat their competitors very easily because usually it is difficult for new entrants to match their companies with the lower cost structure. Therefore, Red Bull because of Red Bulls superior production and operation processes, and their experience in the energy drink industry, and control of its inputs according to their experience in producing red bull drinks, benefit the cost advantages with keeping its quality in the high level. Although there are many energy drinks existing in the industry with the lower price rather than Red Bull, as quality aspect they have not cost advantages both in quality and price, so Red Bull is steps ahead from its competitors in this case. Customer switching cost In food and beverage industry there is no switching cost for costumers with considering the level of quality, therefore it can be considered as threat for existing companies in this industry. In this case, Red Bull is not exceptional, so they need to keep their quality at the same level to not loosing their market share by coming new entrants because it is real threat for them. Government regulations One of big issues and always concerns for companies which like to go internationally is government regulation, also, in this case some Europe countries have problem with selling Red Bull and have tried to ban it. They claim that Red Bull was the cause of death of people in those countries. France, Belgium, and Sweden ban using the mixture of Red Bull and alcohol. So, it can be a threat for them in taking the market share and having a bad image for their brand. . (French Ban on Red Bull (drink) Upheld By European Court) Intensity of Rivalry Rivalry in some industries is characterized by such phrases as warlike, bitter, or cutthroat, whereas in other industries it is termed polite or gentlemanly. Energy drink industry has an intense rivalry because of a number of interacting structural factors: Industry competitive structure Due to the competition in the energy drink market, Red Bull focuses on non-price competitive weapon like offering exhilarating events, high quality products and sponsorship. In contrast with other competitors Red Bull attract more costumers to its company by growing in 45%marketshare  [1]  . Accordingly Red Bull has a major influence on its competitors performance in the industry because Red Bull is one of the pioneers in energy drink industry and many companies try to obey and consider Red Bull as benchmark. Industry demand In the energy drink industry, because of the various proper advertisements to encourage people to use and drink energy drinks (giving the image that people can fly) the demand for drinks is increasing  [2]  . Thus, this is a good point for the company because there are lots of opportunities for every company to fill the current demand and rivalry tend to reduce in the industry, also there is space for everyone to jump in enter the industry (growing stage), and the profit of the company is going to increase which is a goal that every company is seeking it. Buyers Having strong and stable costumers are suppliers and producers concerns, producers like to have costumers with large quantity level of ordering and stable financial status basically in energy drink industry especially Red Bull costumers (buyers) are wholesalers and big retailers. These buyers buy the energy drinks through the company or its representatives, and resell them to supermarket, bars, restaurants and end users. Red Bull faces buyers with high level of bargaining power, and it is real risk for Red Bull. Main reasons for this high bargaining power of buyers in this case are; the switching costs in the energy drink industry are very low. So, Red Bull buyers can switch from Red Bull to other energy drink companies which produce it with lower prices without any difficulty. Also, in most cases energy drink buyers (retailers and wholesalers) purchase products in large quantities, and it is obvious that the more buying in quantity, the more bargaining power the buyer has. So they c an use their power to reduce the cost of energy drinks. Suppliers The bargaining power of suppliers is the same story like bargaining power of buyers but from other side. Red Bull company has both kind of suppliers as bargaining power, some very strong and others weak, so they can balance between them. For instance, the supplier of Glucuronolactone is Glaxo Smithkline Company. Red Bull energy drink buys their Glucurnopolacton inputs from this company. So the bargaining power of this supplier is very high on Red Bull. But the other ingredients are assembled from several small suppliers, and Red Bull has the bargaining power on them. Also, Red Bull has many channels and substitutes suppliers for its normal raw materials, so they can switch from any supplier to cheaper and more flexible one. Substitutes All producers always carry the concern of substitute products for their products and always looking for ways to protect and survive themselves from this phenomenon. Energy drink industry isnt an exception, so players in this industry always try to keep level of quality high, convenience price and other thing which may make costumers more satisfy. Coffee industry can be a threat for energy drinks because of the existing caffeine in coffee and it can be a powerful potential product substitute for energy drink. Therefore, Red bull must take care of its pricing strategy and product quality to keep its costumers and satisfy them more day by day which they were successful due to reports not only Red Bull could protect its products against other substitutes but also, they have increased in their market share in US market by 45%  [3]  . Industry Analysis and Peer Review Industry Characteristics Beverage industry is divided into many categories such as alcoholic vs. non alcoholic, (hard vs. soft drinks) and within soft drinks still there is other segmentation such as carbonated soft drink (CSD) and non carbonated soft drink. Carbonated Energy Drinks account for less than half of the total volume. This figure is heavily skewed however by the popularity of still brands in Asia (Canadean Press release) According to Beverage Digest, in 2004 the U.S. non-alcoholic refreshment market totaled 14 billion cases (192-oz). Carbonated soft drinks made up 73.1% of the total with non-carbonated products comprising 13.7% and packaged bottled water accounting for 13.2%. Americans spent roughly $92.9 billion annually on refreshment beverages.  [4]   Energy drink is a relatively new product introduced in 80s and has been growing noticeably with the market more than doubling in size since 1998 (Canadean Press release  [5]  ). The following chart is evidence of this inevitable growth and the attraction of this growth for drink manufacturer. The industry has been experiencing a significant growth and still growing at the speed that draws the big players in soft like Coca Cola drink to enter to this high margin business. Food and beverage market are critical enough that out of 100 new product development 90 NPD fails. The failure results from a poor interpretation of consumers trend and translation of those to opportunities  [6]  . Austrian company, Red Bull, as a pioneer trend settler has made its fortune from their unique strategies in advertising, marketing and other products characteristics such as Packaging, Flavor, color and Product claim. Global consumption According to Beverage digest report, Asia is the largest leading market in consumption of energy drinks followed by Western Europe and North America as the second and third markets. Asia has been loosing some of 20% of its market share is past 6 years. However, this decline has been offset by the second and third market mainly due to the steady growth in market of carbonated E.D in North America. North American market is now almost 40 times greater than it was in 1998 Peer Review In North America today more than 200 energy drinks existed in US. According to bevNET.com, after a rigorous marketing research the best energy drinks are AMP by Pepsi Cola, KMX Red by Coca-Cola Company Red Bull by Red Bull North America. Red Bulls market dominance seems assured. No other competitors have either the distribution channels or, more importantly, the posture of rebellious infamy to be considered real threats  [7]  . Year 2001, in UK energy drinks market 21 new drinks  [8]  have been introduced that would have force the red bull into a competition. However, red bull can still enjoy being a market leader. In the following table there are representations of top 14 non- alcoholic markets where some of them are in the specific market of the energy drinks. Coca-Cola (Juice, Soft Drinks, Water) ($21bn) Suntory (Water, Soft Drinks) ($4.4bn) Nestle (Coffee, Soft Drinks, Water) ($19bn) Starbucks (Coffee) ($4.0bn) PepsiCo (Juice, Soft Drinks, Water) ($10bn) Sara Lee (Coffee) ($2.7bn) Kraft Foods (Coffee, Powdered Drinks) ($4.6bn) Tchibo (Coffee) ($2.7bn) Unilever (Tea ) ($4.5bn) Red Bull (Energy Drinks) ($1.6bn) Cadbury Schweppes (Soft Drinks) ($4.5bn) Cott Corp (Juice, Soft Drinks) ($1.4bn) Danone (Soft Drinks, Water) ($4.5bn) Ocean Spray Source: http://www.mind-advertising.com/sectors/sector_softdrinks.htm Industry Life Cycle Energy drinks were originally pioneered by Asian companies, but they became popular in Europe the late 80s with the arrival of Red Bull  [9]  . There are more than 200 energy drinks existed in US market only and this figure is increasing due to the high margin of this business. In 2004, carbonated soft drinks posted the growth of 1% which is unlike its usual trend, case of growing 2% to 4%. Noticeably, this inevitable growth was driven by Diet and Energy drinks  [10]  . While other carbonated drinks posted volume change of one Digit, brands like Red Bull and Hansen Natural reported the 45% and 56% of positive volume change in 2004. The market, now estimated to be worth $10 million, has been predicted to grow to $300 million or even as much as $2 billion in the next few years.  [11]  Double digit growth in the market is the main factor contributing to Energy drinks life cycle in its embryonic phase (growth). Since the market is not old enough, the number of players are increasing and even the Coca Cola and Pepsi are the new entrant which add to the well-built assumption of embryonic phase. Brand loyalty and high expectations are still questionable in this stage and its because the consumers are still exposing to new products and new claims. Thus, players are fighting for product feature extension such as low-carbs and sugar free plus new products claims such as improve concentration, reaction time and endurance.  [12]   After introduction of Red Bull in late 80s, industry went to an introduction phase. By 1998, the size of the industry doubled and still growing with a fast pace following highlighted area in the graph is an approximate stage of the life cycle at the moment. Internal Analysis Value Chain Primary Activity: Inbound outbound logistics Logistical issues at Red Bull in of high importance. Due to the fact that all ingredients in the Red Bull drink is synthetically made by pharmaceutical companies, they make sure that their products are carefully handled to maintain the quality and avoid unnecessary costs. Red Bull always makes sure that they align with premium logistics provider to achieve their strategic goals. Red Bull aims to have web-based visibility on their supply chain, thus they base their logistical activities or selection on: Flexible warehouse network Transportation management capabilities Strong information technology offering With 1,600 employees working for Red Bull world wide (Gulf News, Red Bull plans to set up Dubai plant), Red Bull required those standards as they are experiencing year-after-year of high growth, which make the inventory forecasting and management challenging. That is why logistical issues have become increasingly important, and that is why they choose to outsource the logistics to companies that can comply with their network of multi-client warehouses needs (Red Bull OH Logistics). Interestingly, Red Bull uses small distributors in small regional markets, if those small distributors dont perform up to Red Bulls standards they establish a warehouse and push young people to stuff their vans with Red Bulls product and distribute it every where. This way, the small distributors generally break even within three months and are profitable within six (A Bulls Market The marketing of Red Bull Energy Drink). Primary Activity: Operations There is little information about the operations process of Red Bull. However we will enlighten you with the contents and brief information about the packaging company that Red Bull deals with. The great product which is provided by Red Bull one of its main elements of success. Known for improving performance, improving concentration and reaction speed, improving vigilance, improving emotional status and stimulating metabolism, Red Bulls secret is in its ingredients. The ingredients in each Red Bull drink (250ml) consist of: Taurine (1000mg) Glucuronolacton (600mg) Caffeine (80mg) Niacin (20mg) Vitamin B6 (5mg) Pantothenic Acid (5mg) Vitamin B12 (0.005mg) According to Red Bull, It is a combination of all the ingredients together, which result in Red Bulls benefits (Red Bull, Ingredients).. The packaging process of Red Bull is fully done in Austria. And the supplier of Red Bulls cans is Rexam, and they are considered to be the worlds largest provider of beverage cans. Rexam manufactures different types of cans for different industries, however almost half of their revenues come from Coca-Cola and Pepsi Cola. Moreover, industry estimates present that Rexam gained about $22 million from the sales of Red Bull cans (How Does Red Bull Package Its Product?). Primary Activity: Marketing and Sales: With the control of 70% of the à ¢Ã¢â‚¬Å¡Ã‚ ¤1.6 billion market (about à ¢Ã¢â‚¬Å¡Ã‚ ¤1.12 billion), Red Bull has achieved all of this through intensive unconventional marketing strategies. Targeting young people, mainly the Y-generation, Red Bull has utilized eccentric marketing tools that has extremely effective on the target market. The strategy of sponsoring local activities like the Red Bull music academy in the USA, parachuting in South Africa, Go-Karts in Kuwait, and many more in different countries has achieved its target of attracting its target market which gets excited when viewing such sports. Some of the strategies used for marketing Red Bull include: Using pick-up trucks as mobile displays, painted blue and silver with a giant can of the drink mounted on top of the vehicle. Designed to be eye-catching, these devices were aimed at promoting the red bull brand as youthful and slightly off-the-wall. Cans of the drink were also given out free to people on the street who had been identified as being in need of energy. Red Bull was given to club DJs, empty cans would also be left on tables in hot spots such as trendy bars, clubs and pubs. Secondary Activity: Technology The information about the technology that Red Bull uses was quite scares. However we could safely say that Red Bull little activity done on their RD side because Red Bull does enjoy any sort of economies of scale. Red Bull has only one main product, which is the Red Bull energy drink and recently they introduced the new Red Bull energy drink sugar-free. Hence, the main difference between the original Red Bull drink and the sugar-free drink is that it has 0g of sucrose and 0g of glucose, where the original product has 21.5g of sucrose and 5.25g of glucose. Moreover, each sugar-free drink has only 8 calories (EU)/ 10 calories (USA), yet it does not loose any of its energetic effects (Red Bull, Ingredients). Secondary Activity: Human Recourse Red Bull is famous for practicing what they preach, especially when it comes to recruitment. Due to the fact that Red Bull promotes their product as a Hip and young product, they make sure to recruit staffs that are young, in touch with youth culture, dynamic and innovative. For example, they achieve that by recruiting university students as student brand managers to promote its product among young student groups (What Sort of People Work For Red Bull?). However their recruiting does not happen by Red Bull themselves, but they makes sure that it is implemented by all of the outsourced activities. However, it is known that most of Red Bulls 1,600 employees are marketing experts and are the real movers of the Red Bull drink (Marketing Eye, Red Bull Car). Group Customers and Market Segmentation As it is known any successful company should have a certain customer group. The customers that were targeted by Red Bull were the ones that were looking for excitement, alertness, and concentration depending on the age, status, and lifestyle. Four consumer categories were Red Bulls target under the age of 16-30: students, club people, sport people, and employees. College students were the main target of Red Bull. Since college students look for something that would enhance their concentration on doing their assignments and projects, and staying overnight for studying for exams then Red Bull is the best solution for them. It would improve their concentration in their studying Moreover; Red Bull has used this group to enhance their promotion. According to Biz/ed, throw parties those students were emboldened to market the product in the campuses of the universities as what they call them student brand managers. Those students collect the information and make a report of a market data research to the company. Depending on that strategy and the youth generation (high school and colleges students), Red Bull was able to spread the reputation and the popularity of the drink and concentrating on supplying the product rather than applying the traditional marketing ways of promotion (A Look at a Key Feature of Red Bulls Business). The second category of Red Bull customers are the night club people, since the drink has some substances that would increase the persons emotional status. Moreover, Red Bull is offered in the nightclubs depending on the cultural background. For example, nightclubs in Dubai offer Red Bull for the people who do not drink alcohol like the Muslims, which made it a major substitute for alcohol to that group. However, Red Bull is still individually mixed with alcohol to create both the Red Bull highness and the alcohol sensation. Furthermore, Red Bull has also made music events for those groups of customers like the Red Bull Music Academy in 2005 in Seattle, Washington in the United States. (Red Bull Music Academy 2005) For the physical exertion that the drink offers, Red Bull has also promoted the product for the sport people. Among those people, there are the athletes, the racing drivers, the airborne-sport people, water-sport people, the bikers, the skateboarders, and the skiers. Red Bull highly endorsed this group with many sport festivals, and one of the famous one among those is the Red Bull Dolomite Man that took place in Austria in 2005. (Red Bull Dolomite Man) Red Bulls minor groups are the white-collar and the blue-collar workers. Red Bull can support white-collar workers to concentrate more on the job to improve their performance, and it would also help them stay overnight if he or she needed. The drink would also allow the blue-collar workers to work extra hours with out the feeling of exhaustions for the physical exertion that the drink provides. However, Red Bull did not concentrate on this group, so there were no special efforts directed towards them. Within the four groups, there a considerable amount of customers who look for diet product. For that category, Red Bull produced the sugar-free Red Bull to combine the diet customers with rest of the customers that are within the four groups. Business Level and Generic Strategy In the generic strategy Red Bull there are two views, there is a generic strategy from energy drink market perspective, and there is a generic strategy from soft drink market perspective. From the energy drink market perspective, since Red Bull has few economies of scope, the strategy adopted by Red Bull to follow is differentiation. The price of the drink is about 5Dhs in the UAE, which shows the clear differentiation of the product, especially in a market where every body is competing on the same customer segment. According to Biz/ed, Red Bull was able to build a strong brand image through: using Red Bull cars that had big cans on them, giving free cans to people, and providing Red Bull cans to club DJs (A Look at a Key Feature of Red Bulls Business). This strategy made Red Bull to be the market leader of 70% market in the energy drink market. From the soft drink market industry wide perspective Red Bull applies the Focused-differentiation generic strategy. Red Bull has a very good brand image in terms of soft drinks industry. The drink can only maintain this image through focus-

Capital Punishment Essay: Hypocrisy of the Death Penalty

The Hypocrisy of the Death Penalty If there is a desire by the American people to maintain the death penalty, let us at least be spared the hypocrisy of a justification by example.   The death penalty is a penalty, to be sure, a frightful torture, both physical and moral, but it provides no sure example except a demoralizing one. It punishes, but it forestalls nothing; indeed, it may even arouse the impulse to murder. It hardly seems to exist, except for the man who suffers it-- in his soul for months and years, in his body during the desperate and violent hour when he is cut in two without suppressing his life. Let us call it by the name which, for lack of any other nobility, will at least give the nobility of truth, and let us recognize it for what it is essentially: a revenge. A punishment that penalizes without forestalling is indeed called revenge. It is a quasi-arithmetical reply made by society to whoever breaks its primordial law. That reply is as old as man; it is called the law of retaliation. Whoever has done me harm must suffer harm; whoever has put out my eye m...

Government Intervention Essay

Discuss the case for and against government intervention in an economy. In most of the countries, the government has intervened in the market system. To some extent there is a dire need of government intervention in the market system, although there is a debate over this point among the economists. Many economists believe that the role of government intervention improves the market system. The government can easily enforce the rules that can help in the smooth functioning of the market system. On the other hand, there are economists who believe that government interventions in a market system are the reason of inefficiency in the system. There are some goods that underprovided and underconsumed. Such goods are cold merit goods. They can be defined in terms of their externality effects and also in terms of informational problems facing the consumer. A merit good is a product that society values and judges that everyone should have regardless of whether an individual wants them. In this sense, the government is acting paternally in providing merit goods and services. They believe that individuals may not act in their own best interest in part because of imperfect information about the benefits that can be derived. Good examples of merit goods include health services, education, and work training programmes. Why does the government provide merit goods and services? * To encourage consumption so that some of the positive externalities associated with merit goods can be achieved * To overcome the information failures linked to merit goods, not least when the longer-term private benefit of consumption is greater than the shorter-term benefit of consumption * On grounds of equity – because the government believes that consumption should not be based solely on the grounds of ability to pay for a good or service Education is an example of a merit good. Education should provide a number of external benefits that might not be taken into account by the free market. These include rising incomes and productivity for current and future generations; an increase in the occupational mobility of the labour force which should help to reduce unemployment and therefore reduce welfare spending. However, there are some goods which are thought to be ‘bad’ for you. They are cold demerit goods. Examples include the costs arising from consumption of alcohol, cigarettes and drugs together with the social effects of addiction to gambling. The consumption of demerit goods can lead to negative externalities. The government seeks to reduce consumption of demerit goods. Consumers may be unaware of the negative externalities that these goods create – they have imperfect information about long-term damage to their own health. The government may decide to intervene in the market for demerit goods and impose taxes on producers and / or consumers. Higher taxes cause prices to rise and should lead to a fall in demand. However high taxes increase unemployment because firms may relocate abroad increases cost of production for firms making the less competitive to firms in another countries where no tax is applied. But many economists argue that taxation is an ineffective and inequitable way of curbing the consumption of drugs and gambling particularly for those affected by addiction. Banning consumption through regulation may reduce demand, but risks creating secondary (illegal) or underground markets in the product. Market failure with demerit goods – the free market may fail to take into account the negative externalities of consumption because the social cost is less then private cost. Consumers too may experience imperfect information about the long term costs to themselves of consuming products deemed to be demerit goods. The social optimal level of consumption would be Q3 – the output that takes into account the information failure of consumers and also the negative externalities. One way to solve this problem is to try to remove the information failure. Information deficits can often lead to a misallocation of resources and hence the possibility of market failure. Information failure occurs when people have inaccurate, incomplete, uncertain or misunderstood data and so make potentially ‘wrong’ choices. Government action can have a role in improving information to help consumers and producers value the ‘true’ cost and/or benefit of a good or service. Examples might include: * Compulsory labeling on cigarette packages with health warnings to reduce smoking * Improved nutritional information on foods to counter the risks of growing obesity * Anti speeding television advertising to reduce road accidents and advertising campaigns to raise awareness of the risks of drink-driving * Advertising health screening programmes / information campaigns on the dangers of addiction Another dvantage of government intervention is the national minimum wage. The national minimum wage was introduced into the UK in 1999. It is an intervention in the labour market designed to increase the pay of lower-paid workers and thereby influence the distribution of income in society. In October 2005, the value of the minimum wage for adults was ? 5. 05 – following a series of small increases over recent years. The main aims of the minimum wage 1. The equity justification: That every job should offer a fair rate of pay commensurate with the skills and experience of an employee 2. Labour market incentives: The NMW is designed to improve the incentives for people to start looking for work – thereby boosting the economy’s available labour supply 3. Labour market discrimination: The NMW is a tool designed to offset some of the effects of persistent discrimination of many low-paid female workers and younger employees A diagram showing the possible effects of a minimum wage is shown above. The market equilibrium wage for this particular labour market is at W1 (where demand = supply). If the minimum wage is set at Wmin, there will be an excess supply of labour equal to E3 – E2 because the supply of labour will expand (more workers will be willing and able to offer themselves for work at the higher wage than before) but there is a risk that the demand for workers from employers (businesses) will contract if the minimum wage is introduced. Although all political parties are now committed to keeping the minimum wage, there are still plenty of economists who believe that setting a pay floor represents a distortion to the way the labour market works because it reduces the flexibility of the labour market 1. Competitiveness and Jobs: Firstly a minimum wage may cost jobs because a rise in labour costs makes it more expensive to employ people and higher labour costs might damage the international competitiveness of British producers. To the extent that rising unemployment worsens the living standards of those affected it has a negative impact on poverty. 2. Effect on relative poverty: Is the minimum wage the most effective policy to reduce relative poverty? There is evidence that it tends to boost the incomes of middle-income households where more than one household member is lready in work whereas the greatest risk of relative poverty is among the unemployed, elderly and single parent families where the parent is not employed. Government intervenes to stabilise farmer’s income and reduce price fluctuations using buffer stock schemes. The prices of agricultural products tend to fluctuate more violently than the price of manufactured products and services. This is largely due to the volatility in the supply of agricultural products coupled with the fact that demand and supply are price inelastic. Buffer stock schemes seek to stabilise the market price of agricultural products by buying up supplies of the product when harvests are plentiful and selling stocks of the product onto the market when supplies are low. The supply curves S1 and S2 represent the supply of wheat at the end of two different seasons. Supply is perfectly inelastic since farmers cannot change the quantity supplied onto the market post harvest. The organisation wishes to keep price fluctuations within a certain band: it will not allow the price of the product to rise above P max or to fall below P min. Assume that in one particular year there is a bumper harvest so that S1 is supplied onto the market. In absence of any intervention the market price would drop below P min, so the organisation buys up AB of the product to increase the market price up to P min. In the next year bad weather may result in a poor harvest so that only S2 is supplied. The market price would rise above the maximum permitted by the organisation, so the organisation sells CD of its stocks onto the market to reduce the price to P max. In contrast buffer stocks do not often work well in practice. Perishable items can not be stored for long periods of time and can therefore be immediately ruled out of buffer stock schemes. There are also high administrative and storage costs to be considered. Also education or healh sphere can suffer. The economists have a mixed view about the importance and effects of government intervention in the market system, it can be said that government interventions should aim at working with the market system that is already existing rather than implementing policies that make great changes. If the government intervention is such that it introduces inefficiencies greater than rationalizing the entire market system, there is a threat of damaging the economy. The distorted government intervention can lead to consumer dissatisfaction and higher costs. Most of the economists are of the view that government interventions should be facilitating in nature rather than having a direct control over the market.

Need for Localization: Foreign Company’s Obligations to Local Essay

This paper gives a detailed analysis of the local culture and customs that the foreign companies would have to adjust to in order to remove the social and psychological barriers which they would inevitably have to come up against during their overseas operation. The paper lays emphasis on the flexibility approach and localization as the main aspect for foreign companies in order to succeed. The study reveals that although the impact of globalization has brought greater degree of homogenization in commercial procedures, it still remains a distant dream when different cultures mingle making it imperative for these companies to accept heterogeneity as the only way to enter foreign markets. Customs and norms are die hard behavioral habits and have been ingrained in the society over a long period of time and not easily removable or made to overlook. This is especially so while operating in foreign soils and in many instances this has been seen as one of the biggest hurdles facing companies. Rules of law and government rules and regulations may exist but assuming that all businesses are managed by people and for the people, interaction between people is inevitable for its success. Some parent companies may of course have lesser amount of interaction due to the nature of their products or services yet on the whole it is generally seen that whatever be the business norms of the foreign company it has to make discernible changes when it goes into business in a foreign soil. Franchises and branches are actually an extension of the parent company that has been grounded and molded in a foreign soil by a larger participation of the local community within the internal and external environment of the organization. It is also seen that the cultural differences may be slight, marginal or make very great impact on the business due to the cultural difference that exists between the organization’s country of origin and the foreign soil. Thus, it is quite imperative on the part of the foreign company to make some structural changes which should include a changed human resource practice and a changed view of the organization as a whole in certain aspects of beliefs, assumptions and behaviors and above all understanding the positive sides of other cultures. In case the foreign company is hell bent on imposing the customs and assumptions of its own country of origin stating them to be its organizational culture then it would sooner or later find itself out of business. Hence, being indifferent and unmindful of the local customs can be very catastrophic if it doesn’t allow a certain degree of flexibility in bases that are situated on the foreign land. Areas of Conflicts A foreign company while setting its operational bases in another country invites certain risks from conflicts that it not quite seen in the home country. Firstly, the company if it happens to be a Western one inevitably tries to go about its business taking for granted that globalization has brought in a greater degree of flexibility and that the English language is the only internationally accepted language of the world population. This may sound quite okay within cultures that are a part or partake of Westernized conducts and behavioral patterns yet when such a company tries to place its foot on say Africa, the Middle East and the Asian countries then it is a different story altogether. For one there is greater degree of difference between the two cultures which if not properly understood and practiced may prove to be disastrous for the company. For instance, it is the standard procedure in the Western business to make an agreement that after a fruitful negotiation followed with signing of documents and shaking of hands which indicates that the agreement has been done as per the unanimous consent of the parties involved. However, this doesn’t hold well in the Middle East where coming to a formal agreement would mean that the beginning of several serious negotiations is on the way. In other oriental cultures the start of any business transaction is preceded by a ritualistic performance, the majority being religious based as well after ascertaining the stars on the almanac. In China there are three traditional philosophies namely the Confucianism, Taoism and Buddhism and are generally considered as the foremost philosophies for facilitating social interaction. A foreign company trying to open its branch in China would indeed be in conflict with the local customs and beliefs and hence do very poorly if it doesn’t understand the situation. This is more so with the Chinese mostly preferring a Chinese person as a mediator for any negotiation. In India too there are various religious and cultural festivals which form an integral part of the existence of the native person. In areas of human resource this is more pronounced and the foreign company must make allowance for the same by giving holidays and even be expected to participate by handing over of gifts, involving in the cultural events as well as make contributions to enhance their image with the local participants. Therefore, it is generally seen that the foreign company increases its business substantially while conforming to traditional beliefs and customs of the local people than they would otherwise. Multiculturalism and Cultural Assimilation There is growing evidence that the transnational organizations are adopting a policy of recruiting workforce from various cultures from across the world as it is by far the best way to expand overseas and also to understand and integrate better with the markets in these regions. Multinational companies should therefore make note of the fact that in their home ground things were a lot different than what they are likely to experience across the borders. Globalization as seen in the present does not imply homogenization, but the reverse as this means one has to deal with difference directly instead of from a distance as was earlier the case (Nolan, 1999). In multiculturalism, organization readily accepts the presence of varied cultural groups within its own larger cultural base. In the case of cultural assimilation the organizations by its policies prepares to assimilate those cultures of local communities and tries to effectively integrate them into its organizational culture. It is also true that both diversity and internationalization are needed to create diverse learning environment within companies in order to make them adaptive to local customs and hence remain competitive. For this the foreign company should have well laid out policies of manpower learning and understanding of the various cultures that would arise in the event of transfer of personnel. According to authors Stehle and Ernee, transfers are more likely to succeed when employees of the transfer coalition hold positive attitudes and trust towards the parent company (2007). An effective ethical principle is thus evolved in this way and the organization needn’t fear of any future uncertainties and confusion while carrying on its business in soils alien to its own customs and practices. By the process of assimilation the organization has send out the right message to the local communities. Attitudes towards ethics are rooted in culture and business practice and the term international business conduct and morals refer to the foreign company’s relationships with individuals and entities (Mahapatra and Kumar, 2009). Further those companies who are having certain degree of confusion to start operations in an alien soil can take other routes in the form of joint ventures and franchisees. The uses of joint venture can mitigate problems associated with lack of knowledge in norms, values and assumptions that are the foundation of organizational and individual behavior (Ang and Michailova, 2008). Conclusion Thus it is imperative for the foreign company to have an obligation to the local customs, languages, behavior, religion and cultural assumptions in order to consistently perform well and profitably. Once the company forms a distinctive identity with the local population with its overtures, responses and publicity campaigns the company can benefit both in its image and carry out future expansion programs. There have been several instances of the whole company’s leadership position even that of the parent company being entrusted in the hands of persons belonging to the local community with the target market which in this case means the local market too large enough to avoid or forego. The case of PepsiCo is an example as its leader is a woman of Indian origin and it is quite likely that she would be able to understand the cultural and religious sentiments of the people much better than those not native to the soil. Reference List Ang Siah Hwee and Michailova Snejina (2008). Institutional Exploration of Cross- Border alliance Modes: The Case of Emerging Economies Firm. Normative Pillars of Institutions. Management International Review. Mahapatra S N and Kumar Jitender (2009). Transnational Corporations and Marketing Ethics in Global Market in Post Globalization. International Business Ethics and Global Marketing. Abhigyan. Nolan W. Riall Communicating and Adopting Across Cultures: Living and Working In the Global Village. Cultural Basis of Difference. 1, 1. Westport, CT. Bargin & Garvey. Stehle Wolfgang and Ernee Ronel (2007). Transfer of Human Resource Practices from German Multinational Enterprises to Asian Subsidiaries. Research and Practice in Human Resource Management.