Zimbabwe’s Present (Post Z$) Economic Recovery Programmes Essay Example for Free

Zimbabwes Present (Post Z$) Eco no.ic Recovery Programmes EssayIntroductionThe beginning of 2009 attach the end of over a decade of stinting decline in Zimbabwe. The frugalal indicators decline cut across all(prenominal) key sectors, despite Zimbabwes rich resource endowment. Inflation, initially at 100 percent annually between 2001 and 2006, increased to over 1500 percent (McIndoe, 2009). concord to IMF estimates, real GDP suppuration recorded a cumulative contr fleckion of 48% (nearly 5% per year) between 2000 and 2009. Agriculture value added contracted by 86% during the period 2002-2008. Gross study income per capita in 2008 was estimated to be US$360 (comp bed to sub-Saharan Africa average of US$1,428), making it integrity of the poorest countries in the world (Afri net Development Bank, 2010). The poverty rate which was already on an increase since 1995 (42 percent) was recorded at 63 percent in 2003 and was estimated to be over 70 percent in 2010 (African Develop ment Bank Group, 2011).According to the economic constitution reform proposals announced by the conglutination brass formed in February 2009, other symptoms of the economic crises as negative GDP harvest-time rates, unkept productivity cogency, loss of jobs in the formal sector, food short circuitages, massive deindustrialization and general despondency (STERP, 2009). This paper uses developmental raise theory as a arse of assessing economic reform policies proposed and currently world implemented by the Zimbabwes coalition government after the demise of the Zimbabwe dollar (Z$) in 2009.The paper considers STERP in swear out 2009, Medium edge Plan (MTP) in July 2010, and the Three Year Macro-economic Policy and Budget Framework 2010-2012 (STERP II) in the context of this economic theory with a view to assessing the extent to which they bring Zimbabwe closer to the key elements of a develop-mental call forth. This is taken from the premise on which these policies ar anch ored. For example, the sixth point in STERP says STERP is an emergency short term stabilization computer program, whose key goals are to stabilize the macro and micro-economy, recover the levels of savings, investment and growth, and lay the fanny of a more transformative mid-term to long-term economic program that allow for turn Zimbabwe into a progressive developmental maintain, STERP, 2009 point no. 6)The paper begins with a summary of the key elements of the economic reform proposals. It then looks at the key elements of a developmental earth after which it assesses the extent to which Zimbabwes key reform proposals would enable it to meet the minimal requirements of a develop-mental state. The paper concludes by offering an assessment of the chances of success for the economic reform measures.Key elements of Zimbabwes economic reform measuresAll reform programs are anchored on economic stabilization, change magnitude productivity and turning Zimbabwe into a developmental state. In the key policy pronouncements announced in STERP (February 2009) and the Medium Term Plan, Government of Zimbabwe (GoZ) had ii principal objectives. First, it right out to use domestic savings and foreign finance to carry out public investment projects and to mobilize and channel scarce resources into areas that can be expected to make the greatest contri barelyion towards the realization of long term economic objectives. These include measures to stabilize the macro and micro-economy, recover the levels of savings, investment and growth, and lay the basis for transformation from mid-term to long-term economic programs that ordain result in economic growth and reduction of poverty levels.In so doing, the reform programs, as espoused in article 3 of the September 2008 Global Political Agreement (GPA) seek to address the key issues of economic stabilization and subject field healing, whilst at the same fourth dimension laying the foundation of a more comprehensive and developmental economic framework. The second is to ensure that economic policy (e.g. taxation, industrial licensing, the setting of tariffs and the manipulation of wages, take rates and prices) stimulates direct and in some cases control private economic activity to ensure harmonious relationship between the desires of private billet operators and the tender objectives of government policy. Some of the key features of the policies include the adoption of a cash budgeting system use of multiple currencies as legal tender and adoption of the rand as a reference currency and the dismantling of foreign currency controls among other measures.Theoretical frameworkA starting point in exploring the theory of a developmental state is the developmental state literature that gained currency following the phenomenal economic performance of the vitamin E Asian countries in the 1970s. Meredith Woo-Cumings (1999 1) describes the theory of develop-mental state as the explanation for the East As ian industrialization. This theorizing represents one of the first attempts to integrate government and private sector decision making. Earlier theorists much(prenominal) as Downs (1957) had celebrated a trend in economic theorizing which treated government action as an exogenous variable determined by political considerations that lie right(prenominal) the purview of economics.The earlier view represented a carryover from the classical premise that saw the business as a self regulating mechanism. Any government action beyond maintenance of law and order was seen as undesirable interference. Edigheji (2005) has analyzed a add of variations of the literature on the developmental state and nones two strands of theorizing. The first set of theories focus exclusively on the developmental goals of the state (e.g. Castells, 1992). These theories argue that state is developmental when it establishes as its principle of legitimacy its ability to raise and sustain development (understo od as the combination of steady and richly rates of economic growth and structural change in the productive system) both domestically and in its relationship with the world(prenominal) economy. gum olibanum a developmental state is seen as one which is able and willing to create and sustain a policy climate that promotes development by fostering productive investment, exports, growth and human welfare (Ponk, in Edigheji, 2005). The second strand of theorizing looks beyond the objectives to focus on the institutional characteristics of the state and draws attention to the ideological character of the development state. Mkandawire (2001) has referred to this as the state-structure nexus that enable the state to be able to achieve growth and development part others can non. A premium thus has to be placed on the institutional/organizational configurations of the developmental state. This is primarily because what sets a developmental state apart from others is that non only is it a ble to intelligibly set its development objectives it also establishes institutional structures in order to achieve the objectives.Locating the role of the stateIn this paper, a developmental state is defined by its objectives and its institutional characteristics. It is one whose ideological underpinnings are developmental and one that seriously attempts to construct and deploy both administrative and political resources to the task of economic development (Mkandawire, 2001296). The role of the state pick outs to be clarified given the contradictory nature of the literature on the East Asian cases. Earlier theorizing initially conceived a developmental state in terms of the state imposing its will over society and suppressing civil society. Thus they argued that the developmental state paid no heed to the democratic aspect of the developmental state. This is partly because some scholars regarded the repressive nature of the state as one of the factors that enhanced its developmen tal capacity.For some scholars, the soft haughty character of the state was the source of its autonomy which spurred growth (e.g. Johnson, 1982, Wade, 1990). This is because a developmental state has existed in authoritarian Korea and Taiwan as well as in democratic Japan. In fact, Japan was the first East Asian state to be considered a developmental state (Bolesta, 2007107). Despite the nature of government, in a true developmental state, the bureaucratic rulers possess a particular kind of legitimacy that allows them to be some(prenominal) more experimental and undoctrinaire (accommodative of new ideas) than in the typical authoritarian regime (Johnson 1999 52).However, Leftwich (1995 405) has identified six major components that define the developmental state model. These are a determined developmental elite relative autonomy a powerful, competent and insulated bureaucracy a weak and subordinated civil society the effective management of non-state economic interests and legitim acy and performance. The characterization of the democratic elements in Leftwichs model closely mirrors the situation in Zimbabwe prior to 2009 and may not be helpful looking for forward.Zimbabwe had an increasingly authoritarian governance style since the late 90s (Sachikonye, 2002) yet its economic policies saw a continuing decline in key economic indicators. In analyzing the economic reforms policies in Zimbabwe this paper therefore draws more from theories that have stressed the cooperative dynamism of the developmental state. For example, following a detailed analysis of the states relationship with business, Linda Weiss (1998 258) came up with the concept of governed interdependence where she conceptualized that there are collaborative relationships between government and business in pursuit of transformative projects.She notedIn this relationship, each party retains its independence, while government remains the ultimate arbiter of the rules and goals of interaction in which information is exchanged, resources are pooled and tasks shared, (Weiss, 1998 258).Zimbabwes neighbour, Botswana, is an illustration of a state that has pursued certain policies in the construction of what might be regarded as a developmental state i.e. a state that pursues policies that co-ordinates investment plans has a national development vision- implying that the state is an entrepreneurial agent that engages in institution-building to promote growth and development andplays a role in domestic conflict management (Chang, 1999 192-199). estimate of Zims post Z$ economic reform policiesThe economic reform policy measures are assessed in relation to how the enhance Zimbabwes progress towards the progression of developmental state attitude. It is necessary to point at the onset that the key policy reform measures announced by the GoZ have been formulated and are being carried out within the framework of a mixed economy i.e. some of the productive resources are privately owned a nd operated while some are controlled by the public sector. As Todaro and Smith (2010) have noted, the mere existence of such an institutional setup means that neither the private nor the public sector can be considered in isolation from each other.This acknowledgement of the interdependent role of the state and business is one of the fewer confirming outcomes (discussed later) of the reform measures. However, a number of factors in the policy measures do not meet the minimal elements required for the country to attain development state status. These include the lack of a clearly and coordinated role of State institutions and weak premises for global re-engagement, both of which are critical for the success of the economic reform measures.Unclear role of the StateAccording to the MTP (2010), the policy measures seek to establish a platform for Zimbabwe to emerge as a vibrant Private Sector driven economy that is growing and transforming from a producer of primary products to a pr oducer of diversified manufactured quality products laying the foundation of a competitive global player. The State will thus provide a conductive policy environment that will ignite Private Sector initiatives, entrepreneurship as well as promote a saving and investment culture. This statement sounds noble but there is nothing that has been verbalize about coordinating the role of the many state players in the economic reform measures. The Ministry of Economic Planning is coordinating 13 sectors in a framework that in reality has shown to be independent of the other key ministries such as the Youth, Indigenization and Empowerment ministry, the Mines Ministry and the Local government ministries, to cite but a few.The countrys indigenization policy, supervised by the youth ministry, has been viewed as a curse to foreign investment in the nation. Whilst government has made assertions about the enforcement of the Act, several transactions have been concluded which show inconsistency i n policy implementation. A case in point is government sale of above 50% of its shareholding in Ziscosteel to Essar Energy in Mauritius in 2010 despite the conditions of the Act, which state that 51% of all businesses must be indigenously owned. (IH Securities, 2011) Exacerbating this lack of coordination is the past record of State regulation which has in the past failed to facilitating a conducive environment for business by sections of the previous government. This has the effect of promoting rent-seeking behaviours and corruption in both government and the private sector. transnational financial institutions have noted this as a confirmation to the success of the economic reform measures.For example, in statement at the Conclusion of the 2011 Article IV Consultation Mission to Zimbabwe (IMF, 2011) the IMF noted that while stronger policies, a complimentary external environment, and sizeable off-budget donor grants support a nascent economic recovery and a notable improvement in the humanitarian situation during 2009-10, the macroeconomic outlook for 2011 remains highly uncertain, (IMF, 2011). The IMF cites among other things, an inefficient composition of public expenditure, persistent financial sector vulnerabilities, and weaknesses in the business climate, including the recently announced close track indigenization of the mining sector. The State, which prior to the coalition government had become an arena for private capital accumulation, cannot extricate itself from excessive private sector regulation which has, in some cases, resulted in the violation of private property rights.A recent example of these excesses is the recent case that will be heard in the International Court in Paris. The case involves the GoZ and due south Africa based Amari Platinum following the formers cancellation of joint mining ventures in 2010. The South African go with had invested over $35 million into the project where it partnered the Zimbabwe Mining Development Cor poration. According to media reports, the company is demanding compensation of $200 million, (Sunday Times, October 9th 2011). Autonomy, which is a crucial element that supports growth in a developmental state, means the ability of the state to behave as a coherent collective actor capable of identifying and implementing developmental goals (Edigheji, 2005).There is therefore need for structural reforms.These would include alignment of indigenization and empowerment objectives with respect for private property rights and the need to attract domestic and foreign investment. While these recommendations appear individually, they point to the disaster by the reform policies to clearly spell out the role of the State in the economic reform process. Crucially, and related to the role of the State, is the fact that there has not been any systematic attempt to elaborate the concept of the developmental state in Zimbabwe.Besides passing reference in the objectives of all plans, government h as not specified the sources of its capacity, other than regular lamentation about the need to build the skills capacities of the public sector. Thus crucial institutional elements that would enable the developmental state to act in a coherent fashion and, on that basis, successfully engage with its social partners have been either taken for granted at best or ignored at worst.Weak to zero premises for global re-integrationThe policy measures recognize the level of debt currently besetting the country and its impact on badly compulsory financial inflows, yet it is not clear how this debt will be cleared. According to the MTP the success story that Zimbabwe is becoming will in itself unlock other sources of funds. The few investments funds already in the country will soon become a multitude. Investors like a place where a dollar can be made and Zimbabwe provides such an opportunity.This in itself sounds like a work of faith. Whilst trust plays a crucial role in policy implementation , the assumption that only success can unlock lines of credit and provides a stimulus for the productive sector is not based on attest. The huge debt which will result in high future taxes if the countrys major sectors of the economy do not increase their operating capacity against a background of inadequate foreign aid. It could be that it is a carrot in the stick for those elements of government that are likely to derail reforms, yet experience in the past has shown that it is not success that drives politicians, but the ability to create and generate enough wealth prior to the next elections. Reducing poverty under such policies becomes a farfetched dream that will not be recognized. There is need to strengthen internal revenue generation and collection in areas such as tourism, agriculture and mining to finance internal and external debt while also providing resources for the productive sectors such as agriculture and manufacturing.Alternatively, the country could attain Highly Indebted Poor estate (HIPC) status to enable international debt relief. The experience of Zambia shows that total external debt reduced significantly by 8.9 percent from US$7.12 billion in 2001 to US$6.49 billion in 2002 as a result of the HIPC Initiative (Zulu, 2003). HIPC status could be tied in with the strengthening of open bargain policies. Despite being a signatory to numerous avocation pacts, Zimbabwe has maintained numerous import controls as reflected by the high tariffs relative to other countries in the region (Hurungo, 2010). The countrys hesitance to reduce tariffs is due to its over reliance on the revenue generated (Biti, 2010) Economic literature on the relationship between restrictive or open trade policies and economic progress has been inconclusive. Multilateral institutions such as the World Bank (WB) and the International Monetary Fund (IMF) regularly promulgate advice predicated on the belief that nudeness generates predictable and positive consequences f or growth.According to the IMF, for instance, policies toward foreign trade are among the more important factors promoting economic growth and convergence in developing countries, (IMF, 199784). This view is supported by a vast array of literature on trade. For example, Stiglitz (199836) noted that most specifications of empirical growth regressions find that some indicators of external openness- whether trade ratios or indices or price distortions or average tariff level- is strongly association with per-capita income growth. Others have made similar observations noting that integration into the world economy is the best office for countries to grow, (Fischer, 2000).Thus Zimbabwes strategic reintegration with traditional trade partners could spur growth if value addition is considered for some export products. History has shown that there is no positive relationship between exports and growth in Zimbabwe. For much of the period when Zimbabwe experienced negative growth rates (betw een 1997 and 2009), it experienced a trade surplus with South Africa, the European Union and the United States (ZimTrade, 2009). Such trade surpluses need to be tapped into in a new economic and political environment fostered by the coalition government so as to spur economic growth and equity. However, there is no acknowledgement of these facts.Stabilization as a success storyIt should be noted that a significant proportion of the policy measures have had a positive effect- which has resulted in economic stabilization. The adoption of multiple (excluding the Zimbabwe dollar) had the immediate impact of eliminating hyperinflation. yearly inflation declined from an official figure of 231 million in July 2008 to 0.5 percent in December 2009 and 3.5 percent in July 2011, according to the Central Statistical Office (CSO). According to the IMF (April 2011), the Governing Board of the RBZ (which was appointed in May 2010) has achieved a significant improvement in central bank governance, reporting, and organizational restructuring although further steps are needed to accelerate financial restructuring of the financially-distressed RBZ.There was also a significant improvement in product availability in retail and wholesale outlets, with capacity utilization having markedly improved which also witnessed an improvement in the performance of the overall economy. For instance, in 2009 the economy was estimated to have grown by 5.7 percent and the average for SADC was 2.4 percent and 2 percent for Sub-Saharan Africa. While this stabilization, within the theoretical framework of the developmental state, can be seen as progress, it is easy to see that the economic decline had hit rock bottom and the desire is to bring levels of productivity to 2000 levels.The World Bank has estimated that it will take another decade with a growth rate of 10 percent per annum to bring rates to 2000 levels. In June, the IMF said Zimbabwean growth is set to slow sharply in 2011and the countrys recovery from a decade-long deep economic contraction remained fragile (IMF, 2011). An IMF review of Zimbabwes economy projected that economic growth would drop to 5.5 percent in 2011 from 9.0 percent in 2010. It said the country was in debt distress with a large unsustainable external debt stock of 118 percent of gross domestic product as of the end of 2010, the bulk of which was in arrears.ConclusionThis paper has provided a framework for understanding Zimbabwes economic reform policies within the framework of a developmental state. Though not exhaustive, the developmental state has been defined based on its institutional attributes of being autonomous and coherent. In addition, the developmental state is one that forges broad-based alliances with society and ensures popular participation in the governance and transformation processes. Elements of the Washington Consensus and other classical economic theory have been brought to bear on previous economic reform programs and there is evidence that these continue in current reform policies.The classical theories do not take into account the unique circumstances of a country, especially the different types of government. In spite of the type of government, a developmental state is guided by the goals of coherence and authoritative governance, accountability, inclusiveness, stability, ability to generate consensus and popular participation- none of which are telescopic in Zimbabwes political and economic outlook.Much of the work towards the attainment of a developmental state hinge on Zimbabwe providing and implementing a clear explanation of the role of the key players- the state, private sector and civil society- in the proposed economic reform measures. Other measures include forging a clear partnerships with local and international players- with parameters of engagement with the latter based on realistic economic policy measures as well as an engagement path that takes into consideration Zimbabwes trade su rplus with the major international economic blocks such as the European Union, SADC and the United States. Without this, as seen in current reform policies the chances of success of the reform measures are limited.ReferencesAfrican Development Bank Group, 2011, Infrastructure and Growth in Zimbabwe- An Action Plan for Sustained Strong Economic Growth, Tunis, TunisiaAfrican Development Bank Group, 2010, Zimbabwe Country Brief, Regional Department, South Region A, January 2010.Biti, T 2010 2010 Budget Speech. Ministry of Finance (28 January)Castells, M., 1992 Four Asian Tigers with a Dragon Head A Comparative Analysis of State, sparing and Society in the Asian Pacific Rim. in Applebaum R, Henderson J (eds). State and Development in the Asian Pacific. Newbury Park Sage Publications.Chang, H-J (1999) The Economic Theory of the developmental State in M. Woo-Cumings (ed.) The Developmental State New York Cornell University.Downs, A., 1957, An economic theory of political action in a demo cracy. Journal of Political Economy, Vol. 65, none 2, April 1957Edigheji, O., 2005, A Democratic Developmental State in Africa? Centre for Policy Studies, Research Report No. 105, May 2005Hurungo, J.T. 2010 Trade Policy Review Zimbabwe. Stellenbosch TralacMedium Term Plan, 2010, Medium Term Plan January 2010- December 2015, July 6, Harare Government PrintersIH Securities, 2011, Zimbabwe Equity Strategy Bullish macro story amidst potential turbulent waters, Equity Research, March 2, 2011.Johnson, C., 1982, MITI and the Japanese Miracle The Growth of Industrial Policy, 1925-1975. Stanford Stanford University PressLeftwich, A., 1995, Bringing Politics Back In Towards a Model of the Developmental State, Journal of Development Studies, vol. 31, no. 3.McIndoe, T., 2009, Hyperinflation in Zimbabwe money demand, seignorage and Aid shocks. IIIS Discussion Paper No. 293, July 2009.Mkandawire, T., 2001, Thinking About the Developmental States in Africa. Cambridge Journal of Economics, Pp 289- 314Sachikonye, L. M. 2002 Whither Zimbabwe? Crisis and Democratization. Review of African Political Economy, No. 91, 13. P 13- 20. Roape Publications Limited.Todaro, P.T. Smith, C. S., 2010 Economic Development (10th edition), Boston Pearson/ Addison WesleyWade, R. 1990. Governing the Market. Princeton, New Jersey Princeton University Press, 1990.Weiss, L. 2003 Guiding Globalization in East Asia new roles for old developmental states. In Linda Weiss (Ed), States in the global economy bringing domestic institutions back in. UK Cambridge University PressZulu, J.J., 2003, Leaning Against Economic Winds Zambias Problems with HIPC, Lusaka Jubilee- Zambia Debt Project

Population of Bird in Acacia Mangium Proposal

Population of shucks in Acacia Mangium ProposalBIRD POPULATION IN EIGHT YEARS grizzly OF Acacia Mangium PLANTATION IN SABAHLEE WOONJAH1.0 Introduction1.1 Background of StudyBird is a class of wights that live in a wide range of environments, from the equatorial regions to the polar region. Them consists over 10,000 species (Betz Parr, n.d.). Each species of domestic fowl has a restricted range of size from small to large beca map the wing size of birds is vary. In tropic region, birds butterfly roles as pest controller or pollinator to lays and animals. In Borneo, there argon 643 species of birds record. (Wong, 2012). However, bird species found in natural t peerless and plantation argon different. galore(postnominal) tropical forests expect been converted into plantation or agriculture due to the demand of raw stuff and nonsenses. According to FAO (XX), many private sectors are involve in forest plantation plan such as Sabah woods Industries (SFI), Sabah Softwoods (SS), Sabah Forest De break dancement Authority (SAFODA) and other companies. Those companies are established fast outgrowth shoetree species in forest plantation area. Tree species planted are generally exotic such as Acacia mangium, Paraserianthes falcataria and Tectona grandis. The priming coat for plant exotic species is translate sustainable supply of wood materials for its industrial uses in short periods.To keep in line the sustainable wood material supply, fast growing species of trees are recommended to the industrial plantation. Acacia mangium is a species that contribute for the wood production in Malaysia. A. mangium has been planted widely in East Malaysia for the wood based industry. (Adam et al, n.d.) This species of tree is well develops in Sabah because of its desirable properties which is fast growth, good wood quality and tolerance to poor soil condition. (Krisnawati et al., 2011) Acacia mangium is originates from the humid tropical forest of north-eastern Austr alia. The tree species was successful introduced to Sabah in the mid of 1960s. (Krisnawati et al., 2011) This fast growing species stern produce more raw materials for the industrial uses in a shorter period.However, conversion of natural forest to plantation or agricultural will yield the habitat of bird. In forest plantation, the nutriment resources may decrease or confine and also influence the mooring for nesting. As such, the relationship between species of bird and its population is important to be investigated.1.2 Problem StatementBirds consist of different composition base on its attribute and adaptation to forest plantation. Bird flush toilet be biological controller and pollinator. For example, biological pest control is more suitable for control of pest compare to chemical in order to ensure the quality of trees. However, bird population is different in many parts of forest. The reason is mostly the development of nation under the plantation grooming. The land-us e planning confines the plant life such as monoculture. Vegetation in primary forest is dense and richer then forest plantation. Therefore, bird species is more diverse and the population of bird is higher.Birds are migrates from one place to another place due to vary reason. The most common reason is environment change. Food resources are not diverse as primary forest. for the most part forest plantation is undergoes monoculture planting method. Tree species for plantation in Sabah are generally fast growing species such as Acacia mangium, eucalyptus deglupta, Tectona grandis and others species. draw felling before establish plantation can cause bird population decline dramatically. The reason is no suitable place for nesting and feeding.On the other hand, this type of research is seldom done in forest plantation. However, there are some researches done in Sabah Softwoods (SS) but not that done in SFI. The previous study is not focus on bird population in forest plantation. Th e study of bird population requires to updates unceasingly due to the global changing. Therefore, this comparison is important to obtain more precise data with the previous study.1.3 JustificationBird species in forest plantation ashes lack of publishable information for investigate bird population in Sabah. Limitation of data will influence it credibility for future plantation planning and management. Through this research, general bird species will be investigated and evaluate the bird population in Acacia mangium plantation at the age of five year old. This conclusion of study can act as the future references for the occurrence and assemblage of bird species in forest plantation.1.4 ObjectivesTo investigate the population of bird in Acacia mangium of viii years old.To compare the bird diversity in forest plantation with the previous study.1.5 LimitationThere are some limit points in this research. First limitation is weather. Bird observation is usually births under sunny o r cloudy day. Observation normally does not conduct during raining day because birds are grueling to identify and the safety factors. Secondly, Timing for bird observation is critical. Bird observation is conduct start from seven oclock at morning until noon. The reason is observer require to know the bird habitats such the duration time for searching food sources.2.0 Literature Review2.1 Definition of BirdBird is an animal that consists of more than 8600 species worldwide. (McDade, 2005) Birds are grouped into the Animalia Kingdom, Phylum of phylum Chordata and under the class of Aves. (Bird Calssifications/ Families, 2009). All types of birds consist of backbone and hence are grouped into the Chordata Phylum. In the Class Aves, birds can be classify into 23-40 orders.(Bird classification, 2015) The size of birds are vary due to its habitat and also influenced by the environments.Birds have few characteristics such pair of wings, bill, tails, and feathers to distinguish them with others. Wings are the important part for birds to fly. Birds, unlike the others animals, are walk on the ground but mostly they have evolved the capability for flight. Birds have moveable wings but not alike to the fixed wings of aircraft. Their wings are powered by muscles and can soar to the sky rapidly. Some soaring birds like albatross, can fly using their wings and using air currents as a source of power. (Betz Parr, n.d.). Bird forelimbs have evolved into wings and their bones are hollow and can decrease their w octet. Weight is also an issue that influence their flying capability. For example, goose and domestic chicken. square is one of the unique characteristic of birds and make them difference among living animals. Feathers are made of keratin and adapt to flight. Wings made of feathers are adjustable, which mean the flocculent prevail over feathers is thermally insulating a bird body. Birds can fly to escape their enemies or nesting at higher place that they enable to walk to. (McDade, 2005) Feathers are of the essence(p) for bird to fly. The contour feathers on the body establish the smooth, streamlined contour of bird body and enlarged the flight feathers. However, feathers also provide a windproof and seal off covering for birds to prevent them from get cold and maintain their body temperature. In bird behaviour, feathers are an important factor to attract the female birds during the courtship and mating. In many species of birds, male birds are generally has brighter color of feathers while female birds have drab feathers. (Aves more than on Morphology, n.d.)Bills of bird are different in shapes and colors. Different shaped of bills serve different ecological purposes and adapt to the birds feeding habits. For instance, Birds with short bring down bills is for insect eater, long thin bills can for probing flowers or soft mud for worms. The bill is allows the birds to pick fruit or food sources from the end of branches. A bird bill is comp osed of a number of rhamphotheca that is made of keratin.2.2 Definition of Acacia mangiumAcacia mangium also known as Acacia mangium Wild, or called as akasia mangium in Malay, is a type of fastgrowing tree species in plantation programs throughout the Asia and Pacific. This species of tree is origin from the north-eastern Australia, eastern Indonesia and western Papua New Guinea. (http//ageconsearch.umn.edu/bitstream/134648/2/PR035.pdf scallywag=157). Krisnawati, Kallio and Kanninen (2011) reported that A. mangium has been widely introduced to many Asia countries and successful introduced to Malaysia in the mid of 1960.A.mangium become one of the major tropical plantation forestry species because of its fast growing capability and cam adapt well in the poor soil condition. (Dhamodaran Chacko, 1999) This tree species can grow rapidly in the acidic soils and degraded sites but it is intolerant to the shade condition, and grows to be stunted. (Krisnawati, Kallio and Kanninen ,2011). Acacia mangium is a species of tropical lowland climatic zone characteristic and required high total annual rainfall (about 1000- 4500 mm). Tree growth will be slow down if the dry period is prolonged.Acacia mangium generally can grow up to a height of 25-35 meter with a straight bole and the diameter at thorax height (dbh) of over 60cm. (Dhamodaran Chacko, 1999). However, it is rare for Acacia mangium tree grow until 60cm of dbh because it is time consuming and growth of tree will declines rapidly after seven or eight years and except under very ideal conditions over a long periods. (Dhamodaran Chacko, 1999). A. mangium tree height can increase up to 10-15m in the stolon two to three years and increases dramatically up to 25 m at about 5 years.Acacia mangium wood has potential be the raw material for pulp and paper, furniture, woodchips and others wood products. Its leaves can serve as the forage for livestock or decomposes be the soil fertilizer. Besides that, Acacia mangium s awdust can provide the substrate for the alimentation mushroom. (Lemmens etal, 1995) However, this tree species also useful for improve soil fertility. They can maintain the percentage of nitrogen and increase the soil biological activity. This tree is suitable to plant at the areas that heavily infested by weeds and it have the ability to overcome the competition from weeds such as Immperata grass. (Dhamodaran Chacko, 1999)2.3 Biodiversity in Forest PlantationForest plantation is covered more than 80 percent globally and Asia region is covered around 116 hectares (62 percent) in 2000. Forest plantation defined as forest stands established by planting in the afforestation or reforestation process. However, forest plantation area is establishes rapidly worldwide due to the demand of wood material. This turn off has become loss of biodiversity especially for developing countries.Vegetation in primary forest is dense thanIn Sabah, forest plantation is mostly developed by state gover nment during 1970an. Biodiversity in Malaysia is vary among the world. For example, there are more than 220 species of birds in the primary jungle of Malaysia. (Phillipps Phillipps, 2014) The index of biodiversity is changing based on the land use planning. Biodiversity is different between different types of forest as such as primary forest, secondary forest and plantation estate.Birds are migrates from one place to another place due to vary reason. The most common reason is environment change. Food resources are not diverse as primary forest. Mostly forest plantation is undergoes monoculture planting method. Tree species for plantation in Sabah are generally fast growing species such as Acacia mangium, Eucalyptus deglupta, Tectona grandis and others species. Clear felling before establish plantation can cause bird population decline dramatically. The reason is no suitable place for nesting and food searching.3.0 Methodology3.1 view of StudyThe study site for this research is the eight years old Acacia mangium plantation in Sabah Forest Industries (SFI). Sabah Forest Industries (SFI) is located Sepitang, Sabah (Coordinates 5144N 1153123E) and at the southwestern of Sabah state. This company is manages about 288138 hectares of forest estates that consist of natural forest management (NFM) area and industrial tree plantation. The total area for NFM area is 104822 hectares and industrial tree plantation area are consist by titled land (11845 hectares) and non-titled land (171471 hectares). This company was operated since 1987. Currently, SFI is own by Ballarpur Industries Limited which is a part of Avantha Group of companies.Geographical locationMapTopography at sfiHistorical of sfi and size of plantationSFI is the only one integrated pulp and paper manufacturer and is one of timber growers and wood processors in Malaysia. In SFI, consist of saw mill, veneer and plywood factory and pulp and paper manufacturing facilities.Market for SFI includes the domestic an d international mart of writing paper and market pulp. Wood material of SFI is harvest from forest estate that included NFM area and plantation.3.2 MethodsI will use transect survey to conduct this research. Transect is situated in Acacia mangium plantation. Each transect is 500m long and consist of 10 points. Each point is 50m apart. Observer obtains the incident data by bird sighting. I use incident observation as the method to observe bird in plantation. Observations are made using 3060 binocular. (Mohammad et al. 2011). Binocular is equipment that used to observe the bird species and its characteristics. afterward observation, the bird characteristic is sketched and recorded in sketch book. The incident data is recorded including the date, time, location and morphology of bird species. The bird species are then place using Wong (2012).3.3 Data AnalysisAfter all data is collect, I identify each species of bird according to their morphology. The data is then analysis by using Sha nnon Index.4.0 Expected resultThe species of bird is expected to have babbler, fantail, flowerpecker and spiderhunter at five years old A. mangium plantation. The reason is they are mainly insectivores species. Acacia mangium trees will produces inseminate pods once a year and this can attract some bird to foraging in the plantation.5.0 BudgetBinocular is the essential item for bird observe and it cost RM 30 which brought through website. There are two references books needed in this research. Birds of Borneo is a references book for identify bird follow the data that recorded in the sketch book. This book is written by Wong Tsu Shi and published by John Beaufoy Publishing Limited. This book cost RM 49.40. Another references book is Phillipps field guide to the Birds of Borneo written by Quentin Phillipps and Karen Philipps. This book is cost RM 79.20 and its function is same as the book Bird of Borneo. Besides that, budget for the documentation is around RM 200.00 including five copies laser jet printing, photocopy, binding and expenses for stationary. I also budget about RM 150.00 for transportation fees that include the fees for field trip to collect data. Furthermore, budget for food sources requires to considerate during fieldtrip. So, food sources budget is given around RM 350.00 for 30 days fieldwork. The total up of all expenses in this research is about RM 808.60.6.0 Work ScheduleReferencesAves More on Morphology. (n.d.) Retrieve from http//www.ucmp.berkeley.edu/diapsids/birds/birdmm.html. 11Jan 1996Bird Classification. (2015). NewMedia Holdings,Inc. Retrieve from http//www.birds.com/species/classifications/. 22 feb 2015Bird Classifications/ Families. (2009) Nutty Birdwatcher. Retrieve from http//www.birdnature.com/borderintro.html 1 Dec 2009Wooff, W.G. 2012. Sabah Forest Industries. http//www.avanthagroup.com/downloads/Sabah-Forest-Industries-Sdn-Bhd.pdf. 1 Nov 2011Adam, N. S., Jusoh, I., Ishak, N. D. 2012. offset Characteristics of Acacia mangi um Plantation in Sarawak. International Plantation Industry Conference Exhibition. September 4-9, 2012. Kota Kinabalu Sabah.Betz,J. Parr, C. (n.d.) Encyclopedia of Life. Retrieve from http//education.eol.org/resources/topics/birds.pdfDhamodaran. T.K. Chacko, K.C. 1999. Growth and wood characteristics of Acacia mangium growth in Kerala. Kerala Forest enquiry Institute. Retrieve from http//docs.kfri.res.in/KFRI-RR/KFRI-RR174.pdfKrisnawati, H., Kallio, M., Kanninen, M. 2011. Acacia mangium Wild.ecology, silviculture and productivity. Indonesia Center for International Forestry Research.Lemmens, R. H. M. J., Soerianegara, I., Wong, W. C. 1995. Plant resources of South-East Asia No. 5 (2). Timber trees minor commercial timbers. London Backhuys Publishers.Mead, D. J., Miller, R. R. (1991, February). The establishment and tending of Acacia mangium. InACIAR Proc vol. 35, pp. 116-122.Styring, A.R., Ragai, R.,Unggang, J., Stuebing, R., Hosner, P.A., Sheldon, F.H. 2011. Bird corporation assembly in Bornean industrial tree plantations Effect of forest age and structure. Forest Ecology and Management, 261, 531-544.Wong, T.S. 2011. Birds of Borneo. United Kingdom John Beaufoy Publishing Limited.McDade, M.C. 2005. Grzimeks learner animal life resource, Birds. Canada Thomson Gale.Phillipps, Q. Phillipps, K. 2014. Phillipps field guide to the birds of Borneo. United Kingdoms John Beaufoy Publishing.Krishnapillay, D.K. 1998. Edited by Varmola. M. Case study of the tropical forest plantations in Malaysia.http//ageconsearch.umn.edu/bitstream/134648/2/PR035.pdfpage=1571

The Concept Of Pricing

The Concept Of PricingThis module introduces the concept of impairment and discusses its richness and singularityifi heapce to nerves. With a view to the relative significance of sterilise on arrangements winnings and sales, appropriate set policies needs to be hypothesised st wandergically. The various determine decisions that organisations need to make atomic number 18 set setting, adapting price and managing price potpourri which is dealt in this module.Pricing StrategiesIntroductionThis lesson discusses pricing and its importance to organisations and the various factors to be considered slice formulating pricing policiesDefine the concept of priceExplain the factors influencing pricing decisions.Discuss the process of price setting.Explain how organisations adapt prices.Discuss the price change perplexity policies adopted by organisations.Understanding pricing outlay is the amount of money at which a plus or service is stretch outed in the securities industry . It is the exchange rate of a intersection point or service in basis of its monetary value.Pricing is an important decision atomic number 18a for an organisation. The pricing and sales volume of the point of intersection put to fastenher determines the profit for an organisation. The sales volume itself numerates on the type of pricing insurance policy adopted by the organisation. Profits too ar mutualist on the pricing policies.Hence organisations fall in to formulate pricing policies strategically. Pricing alike determines the acceptance of the intersection in the markinget, one can sound out that it determines the mathematical products proximo success in the trade.IKEA pricing outline is to provide quality products at low prices to its customers. mesh advertising through Google ads,Pricing is an important aspect non only for the organization producing the product, tho also for the consumers as well as the society. hurt represents the value of the market off ering to the consumers, it also indicates the quality of the product. Increase in price could be perceived favourably by the consumers by interpreting it as a consequence of improvement of quality.(for reference only)The factors touching pricing policies of an organisation areInternal Factors While making pricing policies, marketers need to take into account several factors which are the result of company decisions and actions. To a great design these factors are controllable and alterable by the company. Internal factors are as followsObjectives of the organisationPositioning sought by organisation through pricing spirit of productPrice elasticity of the productThe stage of Product life cycle of the productUsage and re secure take aim of the product follow of turnoutProduct distinctiveness and positioningOther ps of the marketing mix and their influence on the pricingComposition of product line of the firm outside Factors thither are a number of influencing factors which are e xternal to the firm and can non be controlled by the firm but leave alone impact pricing decisions. immaterial factors are as follows play offet structureConsumer behaviorBargaining strength of consumer groupsBargaining power of major suppliersCompetitors policiesGovernment controls/regulationsOther legal aspectsSocial considerationscartels orbit the PriceThe organisation has to think over several factors while setting its pricing policy. The process of setting the price is as followsDeciding the pricing objective lenss The organisation has to first of all analyse its position of offering in the market. If the organisational objectives are clearly set, setting price commences easier. The major objectives that organisations look to pursue through pricing policy are sustenance, profit maximization, market share maximization, market skimming and quality leadership.Organisations would adopt sustenance policy, if in that location is too much competition and changing in trends col lect to changes in customer taste and preferences. Here the organisation would principally be looking to cover several(prenominal) variable and fixed terms of product and a marginal profit. This kind of policy is useful only in the short run, in the long run firms would set about to extend value to its offer or face extinction.Setting the pricing policy (for reference only)In case the organisational objective of the firm is profit maximization, the firm will t and so choose that price which will give it maximum profits, cash flow or maximum rate of redeem on investments. For such a strategy the firm has also to take convey situation into consideration.In case w here the main objective of the organisation is market share maximisation, they would generally set a low price so that market can be penetrated easily. Low pricing or penetration pricing policy is applicable in the fol take downs situationsConsumers are price sensitiveThere is possibility of market penetration with the help of low pricesProduction and distribution apostrophize fall with soaringer drudgery level and experienceCompetition is discouraged due to the low prices in the marketSkimming price is adopted by firms to gain higher profits in the short run and is applicable in the quest situationsHigh charter exists in the market due to product being a innovator productNot much competition exists in the marketConsumer perception is that, high price indicates quality(for reference only)Determining demand The distinguishable prices set by organisations will lead to difference in demand for the product in the market. The demand curve shows the varied quantities demanded by customers at varying prices. Universally, as demand and price of the products are inversely related, according to the law of demand at a higher price lesser the quantity demanded and at raze price higher the quantity demanded. Only in exceptional cases it can be seen that with increase in price of product, demand too increased, especially seen in cases of prestige goods such as perfumes, diamonds etcetera(Fig 1.1 Demand Curve)(For reference)Figure 1.1, in the first case shows elastic demand and the second case it shows inelastic demand.Price Sensitivity The demand curve shows the markets sensitivity to the changes in prices of the product. It shows the response of customers to changes in prices. Generally customers are more(prenominal) price sensitive to products that salute much such as speciality goods and those goods which are frequently such as staple goods. They are less price sensitive to goods which are brought infrequently or such products, the make up of which is insignificant to the customer.Products which would bind less price sensitivity areDistinctive productsWhere there very few substitutes to the products or customers are not cognizant of substitute productsQuality comparison of substitute products are not easyThe price of product is insignificant to the consumers income It is a complementary good to an earlier purchaseThe product is assumed to be of higher quality, prestige.It is not possible to store the product.The advent of internet has led to an increased price sensitivity in the society. Internet has made it possible for people to compare prices instantly and go for the lowest prices available. Firms have to understand the price sensitivity of their stain market and accordingly formulate pricing policies.Demand estimation and forecasting is an important function to be carried out by organisations for determining the demand for their products. There are various methods that can be used to arrive at demand estimation and forecast.Where different variables of the price are identified statistical analysis can be undertaken, information for these variables collected and thusly analysis is do by using various statistical methods to arrive at the demand forecast.Experimentation method is an different instruction in which demand can be estimated at various price levels. Here the prices of the products are wind upd differently in different markets or in the same market different prices are introduced at different times and then the result is analysed to arrive at the demand.Another method is doing customer surveys and question to gauge the customers response to varying prices.Price elasticity of demand Elasticity of demand is to extend the responsiveness of demand to the different prices aerated. The marketer needs to have an idea of how responsive the market demands are, to various prices set by the firm. If with the change in price the demand for the product changes substantially then we can say that the demand is elastic to price. If with a change in price there in very less or no change in the demand for the product the demand would be said to be inelastic.Demand would usually be less or inelastic in the following situationsThere is no competition or substitute products in the marketHabitsNecessity goodsWhere the price of product is small or insignificant to the consumerPrice elasticity depends on the score of change in prices. Elasticity would be less in case of low level price change and would be more if the price change is significant. For example consumer durables like television and washing machines, with a slight increase in their prices the demand for these product would not fall significantly but with a substantial increase in their prices the demand can come down considerably.If price elasticity differs according to the time period under consideration, in the short run the elasticity would be different than in the long run. This kick downstairss because in the short run certain determinants remain static which can be varied in the long run. For example Habits of people can be changed in the long run, competitive scenario can change in the long run.Cost estimationPricing policies of firms significantly depends on the cost of production and other related costs incurred by the organisat ion for offering the product in the market. Firms generally would charge a price which covers the production cost as well as a fair profit for the firms movement and risk.There are different types of cost related to production of a product Fixed cost which are fixed in nature and do not vary with the level of production or sales. For example rent, interest on capital invested etc.Variable cost vary directly with the level of production of the firm. For example wages, power consumption etc.Total cost can be said as the sum total of the fixed and variable costs for the total production level.Average Cost can be said as the total cost divided by the total number of units produced.The firm would want to charge at least a price which would cover the total production cost.To develop adequate pricing policies the management needs to recognise how cost varies with different levels of production.Cost of production would also change according to its production scale and experience. Ove r the period of time, the experience gained by organisation leads in making more effective and production scheduling policies leading to lower costs. As well as with the expansion of plant and machinery, i.e large scale production helps organisations to decrease the cost of production considerably.Organisations now a days try to adapt their offering as per the requirements of different buyers. A manufacturer whitethorn set different terms and prices for different retail chains according to their requirements. Certain retailer may not want to stock too much inventory of a grouchy product, in that case the delivery that has to be made to this retailer would be much frequent. On the other hand a retailer who has the stocking facility may want deliveries less frequently, accordingly the pricing and profit levels of the manufacturer would differ too.Some companies adopt target pricing, here first of all through market survey the firm arrives at the product features and design. The next step would be to determine at what price the product will be sold. On the basis of the price, a percentage is deducted as profits and the rest would be the cost of production. Hence the organisation has arrived at the cost at which production should happen and that is the target cost at which production should happen.Competitors pricing policies analysis Competitors policies have significant effect on the firms own policies and strategies. The firm has to have a good knowledge of the competitors policies and their possible response to the firms pricing policies. In case the firm is offering product features which are exclusive and not provided by its competitors then their price should be set accordingly. If competitor provides additional features then their worth to the customers should be evaluated and subtracted from firms price.Selecting a pricing method The various pricing methods that organisations can use as follows Mark up Pricing The most widely used pricing technique is t o add a standard mark up to the products cost.Mark up is expressed in terms of percentage. Here, either the cost price or the sale price is taken as the base for determination of the mark up.Eg. Cost price of travel bag Rupees 2000Mark up Rupees cdTherefore selling price Rupees 2400Mark up based on cost price = cholecalciferol/2000 = 25%Mark up based on Selling price = 500/2400= 20.8%Mark up pricingExample Shopkeeper buys goods for Rupees 300/- at a wholesale rate. His cost based mark-up is 25%.Hence sale mark-up price = 100-30 = 75% or 0.75%.Therefore sales price = 300/ 0.75 = 400While determining any pricing policy current demand, value of product perceived by customers, competition subsisting in the market has to be considered. Mark up price would only be useful if it brings in expected sales.Mark up price is quite is popular due to the following reasons Determining cost is quite easy than estimating demandIt is a much simpler way of pricingIf all firms in industry use this pricing policy then price would be similar, leading to less intense price competition.It is believed that cost pricing is fair for both customers and producers, where customers are not exploited and producers get a fair enough return.Rate on return pricing The price is determined on the basis of a planned rate of return on investment made by the organisation.The total cost of one financial years standard production is estimated and taken as the standard cost. The mark up percentage of profit is obtained by multiplying capital turnover by estimated rate of return.Perceived value pricing Here the valuation of the product is done on the basis of how much the customers are willing to pay, instead of considering the production and related costs.(for reference)Value pricing Here the firm charges a fairly lower price for high quality products thereby winning loyal customer.Tesco, UK is one of the largest retailers in UK.Tescos key competence is its pricing policy. It keep its product pr ices low so that sales can be maximised. Lot many customers were attracted to its products due to its value added low priced products.Tesco launched the unbeatable value campaign in the 1996, it made massive reductions in its prices during this campaign. Tesco adopted a low daily low price strategy alongside its promotional programs. This stragegy stressed on unshakableising low prices for its customers on a regular and daily basis.Going rate Prices Going rate pricing emphasises on market conditions.The firm adjusts its own pricing policy to the price structure existing at the industry level. This kind of pricing is usually seen in oligopolistic market structure, where the prices are mutually decided by the firms. Also in cases where costs are difficult to be determined, firms tend to follow the sack rate price because it reflects the entire industries price rate. Examples would be petroleum and oil.Auction pricing or price bidding This type of pricing methods has emerged in the recent years especially due to the growth of Internet. These kind of pricing strategy is mostly seen in electronic goods market, selling a diverse range of products and services by vendueing them through the bidding process. The important function of auction is to dispose of excess products existing with the firm. There are three major auction type pricing.These types areAscending bids, (English auctions) One seller and many buyers. The seller puts up the product or auction and the buyers bid prices, the highest price is accepted.Descending bids (Dutch auctions) One seller and many buyers or one buyer and many sellers. In this kind of auction the buyer quotes a higher price and then decreases it gradually till a bidder accepts the price. In the other case the buyers lets know his intention to buy a particular product and then the sellers bids the prices by offering lower prices.Sealed bid auctions Here the suppliers can submit only one bid and do not know about other bids. From th e submitted bids the most feasible bid is selected(for reference only)While selecting the final price, additional factors has to be considered by the firm such as mental pricing Psychological pricing a marketing practice which is based on the theory that certain kind of prices have psychological influence on customers minds. The prices are expressed as odd prices e.g. Rs. 299.00 or Rs. 499.00.Gain and Risk sharing pricing This type of pricing is used for pricing complex, high set products or services. Many times buyers refrain from accepting sellers proposal due to the high risk if the promised value is not delivered.In order to provide some form of risk sharing or price protection as new drugs are adopted into formularies biopharma companies and payers are entering into agreements.Onyx/Bayers Nexavar (sorafenib) and Pfizers Sutent (sunitinib malate) both anti-cancer drugs Novartis Aclasta (zoledronic acid), and Sanofi-Aventis/Procter Gambles Actonel (risedronate sodium), both o steoporosis drugs are some of the best known drugs.In Germany,Italy and the US, manufacturers have agreed to provide drugs free of charge if no progress is seen after the first treatment, or to hire health plans, say for represent if bone fractures occur despite the osteoporosis therapy.While setting the final price, firm has also to consider the brand quality, advertising, company pricing policies. Firms also need to consider the distributors and agents, sales persons, competitors, suppliers response to the prices of the product. Finally, firms also need to consider the legal implications while setting their prices.Adapting the price Organisations generally set different prices according to variations in geographical demand and costs, market segment requirements, purchase time period, order levels, frequency of delivery, guarantees and various other factors.Various price version strategies are as followsGeographical pricing It involves the pricing of products to different custo mers in different locations and countries. Taking into consideration the transportation costs example shipping / freight costs for distant customers. Also the firm needs to lower the prices of its product/s from sales promotion point of view to retain or go its business. Considering the export of products to countries abroad where the payment from buyer becomes crucial, should he lack payment he may offer other items. This practice also recognised as countertrade. Countertrade accounts approximately up to 25 percent of current world trade. Usually this trading is done as Buyback agreements, Barter, offset and Compensation deals.Countertrade deals may become complex for example an A company in Europe sells 50 yachts to Turkey and accepts in exchange 150 Turkish made cars, which it sold to Pakistan for Rice, which in turn sold to America and achieved payment in dollars . Such deals are carried by a separate department within the organisation. Other companies may depend on barter h ouses or countertrade specialists.Most companies give discounts and allowances in order to receive early payments on volume purchases and off-season buying. This may lead to decreased profits, hence an assumptive price of the products needs to be worked out with planning. commercialiseing researchers have found that up to 35 percent of buyers in most categories are price sensitive. Higher income people are more interested in buying products with added features, customer service, quality and brand. Hence its essential for a strong brand not to get into price discounting in order to react to low price attacks.A company can gain some concessions, if a customer agrees to sign a contract for a bulk years example 3-5 years or if an order is placed in a larger quantity or if an order is placed online thus saving the company money.It is necessary to maintain and monitor all records regarding discounts such as the quantity of customers receiving discount and average discount, etc. It is ess ential for higher levels of management to conduct a net price analysis in order to get the real price offered. However the pull in price is affected not only by discounts, also but by firms average promotional spendings, advertising spendings to retailers to back the product, thus the listed price of the product and so for the net price of the product are two ends of the same thread with couple of other expenses in between.However companies in an overcapacity tend to offer their branded products at a deep discounted rate. Firms should avoid offering discounts to retailers in the long term which in turn would decrease theirs profits in an effort to meet short term volume goals.In order to stimulate early purchase of a product firms can use several pricing techniques. Examples could be found where branded products are offered at a discounted price in order to stimulate extra purchases of other store products. This pays only if the tax is generated by selling other products in propor tion to the lower margins on the loss -leader product.In certain seasons and occasions of festive periods example every June there are back -to-back school sales and during Diwali, Christmas and New Year special prices will be established on products.In order to clear inventories without affecting the listed price, railroad car companies and other consumer goods companies offer cash rebates to help purchase of products during a certain period.Some auto companies offer the product with an attractive finance fascinate such as zero interest rate or in case of consumer durable goods buy now and start paying after sise or nine months instead of cutting its price.Equated monthly instalments may be stretched over a longer period in order to lower them, here the consumer focus is on affording to pay back in instalments rather the rate of interest. This can be in cases of auto companies and consumer durable goods etc.Often auto companies offer an attractive warranty and servicing contract in order to promote their sales.Many a times products price is listed at an artificially high price and then offered with a discount .This creates a psychological discounting in minds of consumers that they have purchased the product at a considerably lower price and have gained but in fact havent.Often in order to accommodate differences in customers, products, locations, etc firms adjust their basic price. Thus price differentiation arises where a product is sold at two or more prices without any proportional difference in costs. Customers are charged depending on their intensity of demand. Buyers would be charged at a lower rate depending on the volume of buying.In case of Museums or places of historic importance there is lower admission tumble to children, foreigners, etc.A firm charges 30 Rs for adding 150 gms saccharide in a Rasgulla tin pack sweet, however it charges 35 Rs for adding the same quantity of sugar for a Kala Jamun pack sweet.A firm can price the same product a t two different levels based on image differences. A detergent manufacturer can put detergent in one packet, name it with an image, and price it at 50 Rs. It can put the same detergent in another packet with a different name and image and price it at 75 Rs.Soft drinks prices often differ in an A grade restaurant, vending machines or when sold in canteens or general stores.Same product is priced differently at different locations even though the cost of offering at each location is the same. A concert audience is charged variably for seating as per their preferences for different locations.Prices differ by season, day or hour etc.Electricity as an important public utility source is charged differently by time of day in United Kingdom. Restaurants and Clubs in United Kingdom charge less during happy hours.Airlines have different fares on same flight for same class for instance its economy class, which also is known as Yield Management / Revenue Management system. They have child fare s, adult fares, seasonal fares etc. Extra baggage price by an airline for a single kilo differs from Dubai to London as opposed to travelling the other way back from London to Dubai.Websites have coupled up different sellers product together such as Car Insurance, Consumer durable goods, home insurance, medical insurance etc, which allows buyers to discriminate between sellers by comparing their prices.Responding to price changes Many time organisations have to go for price cuts and increase as per the situation.Price Cuts It is a possibility that organisation may go for price cuts due to existence of price cuts, also where even with added effort the sales have not increased or due to declining market share. Price cuts can lead to price wars in the market. Lower price can be used by firms so as to dominate market. Organisations may also have to cut down the prices in case of recession.Price Increase Price increases are undertaken by organisations when there is cost inflation. With rise in cost of production the organisations profits lessens, hence they need to go for price increase to earn normal profits. Many times organisations increase their prices more than the increase in cost due to anticipation of further cost increase.Price increase can also happen when there is too much demand for the product and the supply is less.Price increase can be done in the following ways Final price is not set, until the product is delivered to the customer. Generally seen in construction and heavy equipment industries.Here firm wants customers to pay current price and all or part of any cost inflation that can happen in front the delivery of the product.Here the price is kept same but some elements are separated from the product and priced individually. Example in case of automobiles, accessories, other additional features come with extra cost.Discount if any, could be reduced to maintain profits.Organisation also can tackle high cost and over demand without raising price s as follows Reducing the amount offered without increasing the pricesBy substituting raw materials with less expensive materials wherever possibleLessening the product features to lessen its costLessening product servicesUsage of less cost packagingCreating economy brandsReacting to changes in prices Price changes can have a response from customers, competitors, distributors, suppliers and governments.Customers may perceive and respond to price cuts in different ways. Price cuts may be interpreted as lower quality product or faulty products. Price rise would generally carry some positive indications to customers. The product is considered to be of high quality and having added value when prices increased.Competitors may also respond in various ways to price changes. To contemplate competitors reaction organisations have to access their financial situation, sales scenario, market share and their objectives. In case the competitors objective is to increase market share then they wil l change their price in response of firms price changes. If its objective is profit motivation then it will increase its promotional activities to maintain its sales.Responding to competitors price changes It is an important decision on how firm should react to price changes by competitors, the products could go for product augmentation having homogenous characteristics. If product augmentation is not possible then they would have to go for price cuts to counter the competitors price cuts. If price is increased by the competitor in the homogenous market, then other firms may not increase their prices until it is unavoidable.If price change happens in a heterogeneous market then the various aspects needs to be considered before responding to the price change What is the reason for competitors price cuts is it due to over capacity of production, rise in costs of production or the intention is to increase market share.Is the price change temporary or permanentWhat will be the scenario if the firm does not respond to competitors price changeAre other competitors going to respond to the price change and if yes how?Market leaders many a times have to face price changes from new entrants in the market or smaller competitors. There are many ways in which a market leader can respond to competitors price changesMaintain price Market leader my decide to maintain its current price and profit due to the belief that Too much profits will be disconnected if prices are decreasedIt would not lose too much market shareIt is possible to regain market share when requiredMaintain price and add value to its offeringThe product could be augmented, its services and communication improved.Reduce price Leader may go for price cuts to match the competitors price cuts due to following reasons As the market is price sensitive it would lose market shareIt would be difficult to build market share once lostIts costs reduces with higher volume in productionIncrease price and increase qual ity The leader may decide to initiate price increase and also increase quality of product and also introduce new brands or innovative products.Introduce low priced product line It could contemplate adding a low priced product line to

Benchmarking With Costa Coffee And Caffe Nero Marketing Essay

Benchmarking With rib c bump offee berry berry And Caffe Nero marting EssayThe organisation chosen for the report is Starbucks Corp. and the report would compargon it with two similar companies, one being Costa Coffee and the other being Caff Nero.The report would high schoollight the frameworks underpinning the competitive position of Starbucks and to a fault would identify and asses the economic and the competitive position of the firm.A monetary nonplus using appropriate ratio analysis would also be presented in a spreadsheet format identifying the indus discover trends and their impact on the mental process of Starbucks vis--vis Costa Coffee and Caff Nero.Both quantitative and qualitative data would be do available so as to provide an insight into Starbucks sustainable performance and prospects.Analysis of Starbucks operational, financial, organisational and market capabilities would be made available through application of PESTEL analysis, Porters 5 forces model, the Ans off Matrix and the BCG Matrix.The report would also discuss the issues, the problems, the opportunities and the options available to Starbucks for future rail line growth, followed by closures to prepare together alone the variables identified.Recommendations would be provided for the comp whatever highlighting the direction it needs to take to ensure business profitability with comments on the suitability, acceptability and the feasibility of the options made available.INTRODUCTIONThe Starbucks Company was founded in Seattle in 1971 by Gordon Bowker, Jerry Baldwin and Zev Seigel with a vision to educate Ameri commode consumers ab unwrap the fine burnt umber drinking experience. In 1987 Howard Schultz took all over the Starbucks Group. Starbucks is the number one in the industry, with more than 12,000 shops in more than 35 countries. Just within a couple of years they grew from a small chocolate business house to a multi-million dollar player in the coffee industry by bribei ng the best coffee available and providing the people with an matchless transshipment center experience.Freshly brewed coffee is the main return passinged by Starbucks along with other drinks which include cold and hot teas, cakes and pastries. The Starbucks coffee comes in a galore(postnominal) varieties each possessing a different taste, aroma and flavour.INDUSTRY TRENDS AND MARKET ANALYSISThe market right now for gourmet coffee business is hot. All the multi-national disruptive food chains and street-corner shops want in on the boom. Many big companies are focused on the supply of specialty brand coffees and the economic stratum is heating up. Specialty coffee industry is one of the fastest growing financial services globally. Growth in the coffee industry is continuously peaking, with umteen new overseas companies entering the market using policies offering exclusive perks and special discounts, despite the questionable reference of the coffee being used to development the market share.A notable trend seen is that often a signifi tailt gain in sales occurs every time a caf starts to use branded consumables. The consensus is that these coffee drinks would be a long-term trend, with focus on elevating the customers taste for a ingathering that they are familiar with and then leading them to the coffee pedigrees to buy it. Many companies are also tinkering with expanding the food menus as well including an in- computer storage display of sandwiches, fresh baked goods and galore(postnominal) confectionary items.The newest trend is the drive-thru coffee injects. Starbucks has many such stores, all of which are seeing continual growth and long lines. Another trend includes customer requests for organic coffees, which has encouraged retailers to move towards the beans growing environment. The array of products offered has never been as wide, as retailers are adding more flavours to whole beans and creating variations to the basics of espresso and s teamed milk. The clever retailers oblige added iced tea concoctions and coffee shakes to their menus to outdo competitors. Most specialty retailers now also retail whole beans and many such stores lease added coffee grinders, espresso machines and other brewing supplies for add on sales.STARBUCKS ANALYSISThis part of the report would analyse the work of the business by application of PESTEL analysis, Porter 5 forces and the BCG Matrix.PESTEL AnalysisPOLITICALTaxation policyHigh taxes levied on farmers in the bean producing countries, would consequently add-on the rate at which Starbuck would buy the coffee beans and any such fluctuations in the taxation policy would certainly be passed on to the consumer, who now would have to corrupt the end item at a higher(prenominal) price.International trade regulations and tariffsTrade issues would affect Starbucks directly when exporting and import goods. When the government of the trading pastoral imposes a tariff it would not only resu lt in an efficiency loss for Starbucks but also such large income transfers can become irreconcilable with equity. This extra charge would have to be borne by the consumers.Government stabilityA change in government policies has a direct impact on the taxation and legislation framework. Also the countries in political turmoil or civil war should be considered with great caution when considering probable market ventures. craft lawReduction in the licensing and permit costs in coffee bean producing countries would consequently get production costs for the farmers and any such obstetrical delivery would subsequently pass on to Starbucks when purchasing the raw materials and finally to the customers.ECONOMICInterest ratesHigh interest rates would mean putting off the investment and expansion plans of Starbucks, which would result in fewer earnings for the firm. Low interest rates should have the opposite effect.Economic GrowthIn periods of detrimental growth, the consumer incomes wo uld fall leaving less available income thus impacting sales for Starbucks.Inflation ratesBusiness costs will rise in times of pretentiousness which would ultimately have to be borne by the consumer.Competitors pricingCompetitive pricing from competitors would impact Starbucks pricing that would drive down the profit margin as they try to maintain their market share.Exchange ratesIf the currency value falls in a bean supplying country, Starbucks would get more for the same price, when importing the goods. This saving would be passed to the end consumer.SOCIALPopulation demographicsIdentification of the target population at which Starbuck needs to aim their products is a significant factor in the business operations. The marketing campaign undertaken would focus accordingly.Coffee is a luxury product in some ways, so the people with the most amount of disposable income should be targeted.Working PopulationA large number of workers in big cities now go out for lunch and meals. Starbu cks can cash this to their return by promoting the shop as a place where people can eat and meet, boosting the sales.TECHNOLOGICALIT developmentStarbucks launched its first-generation e-commerce website in 1998. As a result, scalability and performance have improved, and the company now has the tools it needs to profile and target customers, analyse site data, and deliver new features to the market in the shortest time possible.New materials and processesTechnology developments in coffee making machines and the computer systems that Starbucks use to operate their cash registers would change the staff to work swiftly and efficiently. This results in customers being served quickly thus creating capability for serving more people in the day.Rate of technological changeTechnology is advancing at an astounding rate. Starbucks will need to invest majorly clean to stand their ground in the always expanding and developing market, and also to try to stay ahead of competitors.ENVIRONMENT ALPollution problemsStarbucks customers create a lot of untamed by disposing off the cup and the contents incorrectly. The material for the cup should be carefully selected to make it as biologically degradable as possible.Planning permitsPlanning permission may not be granted to Starbucks if the construction would harm the environment. The land may be protected.Environmental pressure groupsStarbucks should be aware of the influential and truehearted-arm power of groups such as Greenpeace and Friends of the Earth. Any violation of animal or environmental rights by a company is usually followed by a swift and attention-drawing protest from one of the groups. Brand image and customer bases are often irreconcilably tarnished payable to the actions of these groups.LEGALTrade and product re exactionsStarbucks need to follow the trade laws of the countries where they have established businesses. They must ensure that they are not in violation of any local laws. Some countries impose a tariff that has to be paying accordingly when importing or exporting goods and this must be taken into account as well.Employment lawsEach country has different employment laws, standardised limiting the number of hours a person can work per week, varying levels of minimum wage etc. Starbucks should be aware of such factors when considering business expansion.wellness and Safety regulationsBy not maintaining high standards they would be liable for damages if found in violation as it is a legal requirement for them to enable that their staff and customers are safe when they are in their stores.PORTER 5 FORCES ANALYSISNew EntrantsMIDBuyer queenMIDSupplier PowerLOWCompetitive RivalryLOWSubstitution ThreatLOW1. COMPETITIVE RIVALRY (Low)Starbucks is the leader in retailing and roasting of specialty coffee in the world. Major competitors include Costa coffee, Caff Nero, Seattles Best Coffee and secondary coffee providers such as McDonalds, Burger King and Dunkin Donuts. The argument is nowhere near to Starbucks stack of operations and sales.Consumption of coffee is not dependent on the price of the product but also on the differentiation between each product and several value adding variables such as the quality of customer services, brand, brand recognition and image of the company. Hence, Starbucks is not majorly sensitive to movements of other firms in this segment.2. THREAT OF pertly ENTRANTS (Mid)Starbuck is the world leader in its industry and has controlled chafe to distribution channels. Starbucks have extreme control over such distribution channels because of setting strict guidelines for the suppliers to follow. Starbucks is also constantly innovating and showing strong product differentiation to hamper the possibility of new entrants.However, the entry barrier for the industry is relatively low and any big firm where funding is not a problem, can be a potential entrant. Some of the more current and on-going threats of new entrants are Burger King, McDonalds and Dunkin Donuts which can become a major problem in the near future.3. BARGAINING POWER OF BUYERS (Mid)A big threat to Starbucks is the absence of switching costs in the speciality coffee industry, customers face no switching costs in switching from Starbucks to Costa Coffee or Caff Nero for a cup of coffee. Also a threat to Starbucks is the ability of customers to brew their own coffee. Starbucks tries to counter this threat by offering the Preferred Office Coffee Providers and also provides directions for making a perfective cup of Starbucks coffee at home, that perfect cup of course includes all ingredients which have to be purchased from StarbucksAlso with new entrants and competitors such as McDonalds who claim to offer premium roast coffee of reasonable quality for lower price, thus giving the customers some bargaining power.4. BARGAINING POWER OF SUPPLIERS (Low)Central and South the States produce coffee which is the second largest traded commodity in the world and Starbucks depends upon outside brokers and a mutually direct contact with exporters for supply of premium coffee beans.The quality of coffee beans sought by Starbucks is very high, proving to be a potential threat to the company. Only suppliers which meet Starbucks coffee standards are able to supply to the hulk company. The supplying industry only has few firms which can deliver the quality giving them considerable bargaining powers.However, Starbucks counters this due to its massive size and being the elemental buyer and also because of the immensity of Starbucks business to any individual supplier as it would account for a large percentage of the total suppliers sales, thus cut down the bargaining power of suppliers.5. THE THREAT OF SUBSTITUTION (Low)Substitute products are the products that can pose as a trade-off for the product being offered by a company. In the specialty coffee industry, substitute products can be soft drinks, tea, energy drinks, fruit juices and oth er caffeinated drinks.Here innovation would play a immense role. To counter this Starbucks have given their menus a complete revamp and have differentiated so many of their products which are now part of the main product line. The menu includes various teas, hot and cold coffee, baked goods and various confectionary items.The only true direct substitute for specialty coffee would be the basic coffee, which is of lower quality than specialty and as such does not present any threat.BCG MATRIXRELATIVE MARKET SHAREHIGHINDUSTRYSALES returnRATEHIGHSTARS ( Growth Strategy )Global stores market acumen and DevelopmentBackward, Forward or Horizontal IntegrationLOWCASH cow ( Stability Strategy )Product Development and DifferentiationDiversificationU.S StoresANSOFF MATRIXPresent ProductNew ProductPresent MarketMarket PenetrationHotels, Schools, Airlines, Grocery Stores, Businesses, and Industries CafeteriaProduct DevelopmentNew Bold Fresh Lunch Programmes and Salads e.g. fiesta chicken salad , fruit and cheese platterNew MarketMarket DevelopmentOpening of stores all over the world. Expansion strategies into Brazil, Russia, Romania and India.DiversificationMusic CDs, Clothing, Coffee Mugs and other accessories.STARBUCKS FINANCIAL ANALYSISThis part of the report would highlight the financial position of Starbucks using the annual reports and comprehensive ratio analysis for the financial years 2008, 2009 and 2010 which are enclosed in the appendix.2008In fiscal 2008, Starbucks experienced declining store sales in its stores, primarily due to lower customer traffic. The weaker traffic was caused due to number of on-going factors in the global economy such as the higher costs of gas, food, personal debt and rising levels of unemployment along with reduced access to consumer credit.In fiscal year 2008, store sales declined a margin of 8%. merge operating income was $503.9 million in fiscal 2008, and operating margin for the year was 4.9% compared with 11.2% in the prior yea r. The 260 basis points of the decrease in operating margin were due to the restructuring charges, primarily related to the significant US store closures.EPS for fiscal 2008 was $0.43, compared to EPS of $0.86 per share earned in the previous year year. Restructuring charges and costs associated with the execution of the transformation docket impacted EPS by approximately $0.28 per share in fiscal 2008.2009Financial year 2009 was a tough year for Starbucks. The recessionary economic environment express the consumer spending in the US and internationally, which impacted store sales, operating income, company revenues, and the operating margins negatively.Starbucks countered the affects and created a business model less dependent on high revenue growth to drive profitability margins. The dodge was to rationalize the global company operated store portfolio to reduce the cost structure and renewing the focus on customer service excellence.Starbucks had to close down about1000 stores. Steps that targeted reductions in the cost structure in FY 2009 proceeded according to plan, with full year costs of $581 million take from the cost portfolio.The company created a strong financial foundation, with no short term debt outstanding at the end of FY 2009, with cash and liquid investments totalling more than $640 million. The strong financial position and the continuing strong cash flow generation allowed Starbucks the financial flexibility to implement the restructuring efforts.2010In fiscal 2010, revenues increased to a platter $10.7 billion. Operating income increased by $857 million from scal 2009 to $1.4 billion. The full-year operating margin of 13.3 % represented the highest full-year consolidated operating margin in Starbucks history. Fiscal 2010 ended with the highest full-year comparable store sales growth that Starbucks have seen in the recent past, while the earnings per share also grew more than double from scal 2009.BENCHMARKING WITH COSTA COFFEE AND CAFF NEROStarbucks is a US chain whereas both Costa Coffee and Caff Nero were established in the UK. Costa Coffee was setup in London in 1971 by Bruno and Sergio Costa and acquired by Whitbread PLC in 1995. Caff Nero was established by Gerry Ford in 1997 in the UK.The comparison would be carried out using the financial information of the three firms which is available in the appendix. The comparison would majorly be based on the UK market. at that place are 1,175 Costa Coffee shops in Britain as compared to 731 of Starbucks and 440 of Caff Nero. A comprehensive business analysis of Starbucks has already been supplied in the above report this part would focus on the business analysis of Caff Nero and Costa Coffee individually followed by a coherent conclusion of the findings.Costa CoffeeAccording to the financial data available operating profit grew by 59.5% to 36.2million 312 new stores were acquired or opened and like for like sales increased by 5.6%. Costa operates in 24 countries and is the number two international coffee shop operator with more than 1,600 stores. Sales performance improved strongly across the year, confirming the brands resilience, even in a recessionary environment.Caff NeroThe groups 60% equity is held by the Ford family, the rest 30% by a private equity firm Paladin and 10% with the management. Caff Nero has recently completed a 140m refinancing to fund the businesss future growth goals.The business more than five hundred outlets in the UK and internationally and has registered 54 consecutive quarters of positive like-for-like stores growth, it is forecast to generate 32m in earnings before interest, tax, depreciation and amortisation (EBITDA) for the 12 months to may 2011. Revenue for the same period is forecast to reach 170m, an increase of 12% on the previous year. The new financial structure would provide the Group with a financial platform to support its growth ambitions and expansion plans both in the UK and internationally.Nero has a lot of ups including strong brand positioning, intensive marketing campaigns and a pass by differentiation point. However, there are some weaknesses, one of them being lack of experience in going international, thus some problems could arise while needlelike foreign markets.Though both the companies Costa and Nero are well established in the UK market, Starbucks is the industry leader in the world and is a major competition to them in the UK. Financial turnover of the Starbucks Group is so massive that it provides them with all the capital requirements to innovate and differentiate their product from the 2 competitors it already has established a sizeable market share in the UK, but still needs to take over Costa Coffee which it should be able to do in the near future, looking at the financial figures provided and the international global strategy adopted by the group which seems very promising.ISSUES FACING STARBUCKSA major altercate that Starbucks is dealing with is the curre nt financial crunch in the world economy forcing them to call closures of many stores around the world.Also another challenge that Starbucks is facing is with is competitors. There are many coffee shops all over the world and to be able to stand out and to generate loyal customers is very important. Their main competitors are McDonalds, Dunkin Donuts, and Nestle in the US and brands like Costa Coffee and Caff Nero in the UK, the two major markets for Starbucks. It is critical for Starbucks are aware of their competitors and know what they are soon doing.Also Starbuck coffees are priced higher than other market competitors because of Starbucks only purchasing the highest quality coffee beans for their product, thus increasing the price of the drink. As Starbucks have many competitors, this can be a potential advantage to for such competitors.Also Starbucks inadequate marketing strategy on advertising is a hindrance in the business growth opportunities. They prefer to build the brand by promoting the drinks cup-by-cup with customers. The advertisement ends until they drink the coffee, reducing the chances to attract valuable customers.Starbucks also does not emphasize on distributing their products to supermarket because of being concerned with the quality of the coffee if the coffees were packaged into plastic bags.Also the rigorous expansion strategy followed by Starbucks can take a monetary value on the firms brand image. As a company grows there would be a tendency to focus heavily on increasing the output and store locations, thus focussing less on the quality and brand image. Starbucks needs to stay with its values and ideals that have made it successful.Also Starbucks policy of not franchising can be a cause of concern for the firm. Franchising would allow the company to open many new stores with less risk, and make considerable profits in doing so. Because of this the firms research and development costs would fall making use of the franchisee knowled ge of the local market in terms of geographic, psychographics, demographics, and the local country regulations.CONCLUSION AND RECCOMENDATIONSStarbucks has to effectively ensue a Focus-Based Strategy in conjunction with differentiation and cost leadership based strategy. Being a lower cost store will increase the difference between Starbucks and provide it with a competitive edge. At present, Starbucks competitors are attempting to specialize in the coffee business, therefore Starbucks must pursue focus strategy to increase its strength.Starbucks must reduce their product price by producing a new product of coffee using cheaper beans or can come out with special discounts and promotions to reduce cost, thus increasing sales enabling Starbucks to enter new low cost markets and increase profitability. Also needs to focus on building alliances in new markets/countries to reduce management focus and benefit from the local and experience curves.Should focus on advertising the brand throu gh cyberspace services for users to access, do road shows, hand out brochures etc. so that consumers become more aware of the brands strong international presence and brand name. Market penetration and market development will help increase the sales. Access unexplored distribution channels like making available packaged Starbucks coffee for consumers by displaying it nationwide in various convenience and shopping stores and not only Starbucks stores.Starbucks must adopt twin policies of Product Development and Product-Market Diversification to counter the stiff competition in international markets. There needs to be concentration of efforts in the product development so as to focus majorly on making the existing products better. Product and market diversification can be modelled through research and development coupled with creativity and innovation. Product differentiation would be an excellent defence against the threat of the bargaining power of buyers. Developing new products l ines may offset such potential risks.A strategy should be formulate to tackle the competition by entering into long-term contracts and agreements with the food service companies which could be the potential competitors. This way their coffee would be sold at these competitors outlets providing access to more markets and increase sales while decreasing the competition.Starbucks must be a first instrument into markets with their new products and ideas. Being a first mover into developing international markets would be the appropriate way for Starbucks to build their customer loyalty and upholding its image as the innovative company that it is.Starbucks should also locate the store operations in possible high traffic and visibility areas. The company should take adequate care in picking such locations. It is of prime importance that Starbucks international stores reflect their trademark uniqueness in their location and layout. Having locations in a variety of areas will ensure large market exposure.REFRENCESJohnson, Scholes (2008) Exploring Corporate Strategy, eighth edition, FT Pitman WhittingtonVaitilingam, R.(2005) Financial Times Guide to Using the Financial Pages, FT scholar entrance hallHolmes, Sugden Gee (2008) Interpreting Company Reports Accounts 10thed, FT Prentice HallBrealey, Myers Allen (2003) Principles of Corporate Finance 9thed McGraw HillMiller, A (1998) Strategic Management, 3rd edition, McGraw HillGrundy, T et al (1998) Exploring Strategic Financial Management Prentice HallBuckley, A et al (1998) Corporate Finance Europe McGraw HillBarker, R (2001)Determining Value valuation models and financial statements, FT PitmanFraser L Ormiston A (2001) taking into custody Financial Statements, Prentice HallShapiro A Balbirer S (2000) Modern Corporate Finance Prentice HallChorafas D (1995) Financial Models Simulation St Martins /MacmillanWatson D mental capacity A (2001) Corporate Finance Principles Practice FT Prentice HallStarbucks (2010) Company Profile Online in stock(predicate) from http//assets.starbucks.com/assets/company-profile-feb10.pdf Accessed 11th May 2011Starbucks (2010) Recognition Online Available from http//assets.starbucks.com/assets/starbucks-recognition-jan2010.pdf Accessed second May 2011Iwata (2006) Owner of small coffee shop takes on java titan Starbucks Online Availablefromhttp//www.usatoday.com/money/industries/food/2006-12-20-starbucks-usat_x.htmAccessed 1st May 2011Jagger (2008) Starbucks profits dive by 97% Online Available from http//business.timesonline.co.uk/tol/business/industry_sectors/retailing/article5127267.eceAccessed 2nd May 2011Linn (2008) Starbucks to close 600 stores in the U.SOnline.Available from http//www.msnbc.msn.com/id/25482250/ns/business retail/Accessed 2nd May 2011Thompson (2008) Starbucks blames UK for weak performanceOnline.Available fromhttp//www.independent.co.uk/news/business/news/starbucks-blames-uk-for-weak-performance-1012568.html Accessed 3rd May 2011Bowers (2 010) Starbucks losses in UK rise to 10m Online.Available fromhttp//www.guardian.co.uk/business/2010/jul/09/starbucks-losses-rise-recessionAccessed 6th May 2011Guardian.co.uk (2010) Starbucks triples profits to $240m Online.Available fromhttp//www.guardian.co.uk/business/2010/jan/21/starbucks-triples-profits-coffeeAccessed 14h May 2011BBC.co.uk (2010) Starbucks profits stick out as sales climbOnline.Available from http//www.bbc.co.uk/news/business-11699561 Accessed 19th May 2010Weber (2011) Preserving the Starbucks Counter Culture Online. Available fromhttp//www.workforce.com/section/recruiting-staffing/feature/preserving-starbucks-counter-culture/Accessed 16th May 2010Starbucks (2011) Investor Relations Online Available from http//investor.starbucks.com/phoenix.zhtml?c=99518p=irol-irhomeAccessed 3rd May 2011Dobson (2011) www.statistics.gov.uk (2011) Employment Online .Available from http//www.statistics.gov.uk/cci/nugget.asp?id=12 Accessed 10th May 2011Hoovers.com (2011) Starbucks Corporation Online.Available from http//www.hoovers.com/company/Starbucks_Corporation/rhkchi-1.html Accessed13th May 2011

Northeast Skiing Cant Keep Up WIth the West :: Journalism Journalistic Essays

Northeast Skiing Cant Keep Up With the WestSkiers are very loyal athletes. They recruit up learning on certain mountains and usu all in ally spend most of their lives locomote at those same iodines. They remember every bump and turn on the way down. They know which lift to take because it is the fastest and has the shortest line. It takes a lot for a skier to stray from their normal habitat and adventure to slopes unknown. Actually, it takes two seasons of horrible skiing conditions, which is what the Northeast ski industry has recently suffered. Two long eld of rain, ice, sleet, and bitter temperatures. The biggest and best mountains in the Northeast have had their finest trails closed almost all of the 2003-04 season. The less open trails, the more than crowded the ones that are open are. The less lifts that are open, the more crowded the open ones are. The more crowded the mountain is, the more angry skiers are. So what do these angry skiers do? They do the unthinkable and lo ok elsewhere. They look west.The skiing out West is much better, said Doug Sabanosh, managing editor in chief of SKI Magazine. The East is cold, cloudy, and gray while out West we have 300 days of sun.Sabanosh grew up skiing in the Northeast, but he has been reenforcement in Colorado for the past 15 years. He says that the mountains out there are bigger, which eliminates the problem of crowdedness on the mountain. Trails are wide open, lift lines are short, and the weather condition is unbelievable. More people are following Sabanoshs lead and heading out West to look for better skiing. The Northeast is slumping. The past two years have been slow. Resorts here in the East have been doing everything they can to keep their numbers up and stay competitive with the West. Recently, SKI Magazine came out with its altitude ten ski areas in North America. The list is voted on by the magazines readers. It is based on things such as region, snow, grooming, terrain, challenge, value, lifts , weather, service, and off-hill activities. Not one resort from the Northeast was in that top ten. Six resorts from Colorado made the poll including Vail and Steamboat. Mountains from Utah and Idaho filled in the rest of the list as well as Whistler Mountain in British Columbia. The West dominates this poll. Not even Killington in Vermont, which is one of the biggest mountains in the country, was in the top ten.

Emergency and Oral Contraceptives :: Birth Control Expository Essays

Emergency and Oral ContraceptivesContraception is the intentional disallowion of conception or pregnancy after susceptible sexual intercourse. Contraceptives are more than 99 percent sound, and I believe they are a reliable form of birth control. Men and women want contraception in one form or another that is safe, effective, affordable, and easy to use. Today, more than ever, we have a variety of choices that meet these needfully (Winikoff 1). Emergency contraception has been available for more than 25 years and could prevent 1.7 million unintended pregnancies and 800,000 abortions each year in the U.S. It is a safe and effective method of contraception, and women who have used it report high levels of satisfaction. These successfully staggering numbers are evidence of the effectiveness of contraception.A more common wee-wee for emergency contraception is the morning after pill. But this indeed is an inaccurate generalization. The pill can be taken the night of sexual intercou rse, and even up to 72 hours after intercourse. A woman using the emergency prophylactic method should begin taking the recommended dosage within the first 72 hours of unprotected sexual intercourse. The recommended dosage, which is two pills, is to be taken 12 hours apart. For best results, the first pill is to be taken within the 72 hour time frame, as yet studies do show effectiveness if taken after that period. The second pill must be taken 12 hours after the first (Samra). The emergency contraceptive pills each contain .05 mg of the hormone ethinyl estradiol and .5 mg of the hormone norgestrel. The ingestion of these hormones is what prevents or delays ovulation. These hormones also can prevent the fertilization of the egg, if one has already been released from the ovary, and may interfere with the implantation of an egg. Scientific evidence suggests the pills work before pregnancy occurs by preventing or delaying ovulation (Syrop).Although emergency contraception is consider ed safe and effective, it should not be used as an everyday method of contraception. Emergency contraception is not as effective as birth control pills, because of occasions where it is taken in any case late, and is associated with more uncomfortable side effects. The most common side effects are nausea and vomiting (Syrop). Another form of emergency contraception deals with the interposition of a copper-T intrauterine device (IUD) within five days of unprotected sex. Insertion of this device is more effective than emergency contraception. Inserting an IUD can prevent implantation of a fertilized egg 99 percent of the time, and can be left in place for up to ten years if desired (Syrop).