Starbucks in 2009 Free Essays

STARBUCKS IN 2009 1 TABLE OF CONTENT Starbucks issues and causes†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 2 Starbucks current strategies and evaluation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. We will write a custom essay sample on Starbucks in 2009 or any similar topic only for you Order Now . †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 4 Analysis and recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 10 SOAR analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 10 Competitive analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 11 Value chain analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦14 Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17 Appendix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 18 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 19 STARBUCKS IN 2009 2 STARBUCKS IN 2009 Starbucks issues and causes Starbucks share price went down from the peak of $40(October 2006) more than 75% over the next two years. The sale and operating profits decreased 73. 1 million dollars compared to the last year in 2008 (Table 1 in the Appendix). The growth rate of Starbucks store sales decreased 8% in 2008 (Starbucks Corporation, 2008). 60. 00% 50. 00% 40. 00% 30. 00% 20. 00% 10. 00% 0. 00% 2005 2006 2007 2008 ROA ROE The chart above shows the ROA (return on assets) and ROE (return on equity) ratio of Starbucks has generally gone down between 2005 and 2008. STARBUCKS IN 2009 3 Following are five main factors that caused Starbucks downturn in 2008: 1. Economic environment—Great Recession The global economic decline began in 2007 and took a sharp downward turn in September 2008. Due to this recession, each U. S. household lost an average of approximately $5,800 in income, and gross domestic product declined 6. 2 percent annualized (PEW, 2008). 2. Competitors Some independent coffee shops, such as Caribou Coffee (U. S. ), have imitated the operating model of Starbucks and have expanded and become national chains. In addition, fast food chains, including McDonald’s, Burger King, and Dunkin’ Donuts, started to provide coffee and get favorable comments. 3. Consumer performance Customers, especially coffee-lovers, became connoisseurs through the education process of coffee, which is a part of â€Å"Starbucks Experience†. Those educated customers would look for superior alternatives to satisfy the appetite. Another factor that affects sales is local preference. Customers could prefer different flavors and different types of coffee in different regions and areas. Ignoring the custom is the main aspect that leads to the failure of Starbucks in Australia. STARBUCKS IN 2009 4 4. Excessive store expansions One of Starbucks’ operating strategies is to increase its market share by continuing to open new stores in the existing market, and expanding stores in the new market to support its long-term strategy. During the recession, Starbucks did not slow down the expansion which resulted in 300 store closures and 6700 job losses in 2009. In 2008, cost of sales increased from $3999 million to $4645 million from the previous year. The store operating expenses have increased $528. 0 million between 2006 and 2007; and the long-term debt has also increased from $2. 7 million in 2006 to $550. 9 million in 2007 (Table 1 in the Appendix). 5. â€Å"Starbucks Experience† brand dilution Although Starbucks has already created a distinguished mission and value for the last twenty years, consumers’ perception towards the â€Å"Starbucks Experie nce† has changed rapidly. Consumers are becoming too familiar with the brand and consider Starbucks’ product overpriced compared to other coffee stores in the market. Many questions arise to if consumers really value and recognized the â€Å"Starbucks Experience†. Starbucks current strategies and evaluation 1. Rediscover and Revitalize Starbucks Experience The â€Å"Starbucks Experience† includes the high quality coffee beans, employee involvement, community relations, social purpose, the layout and design of the stores, STARBUCKS IN 2009 5 and Starbucks location strategy. Howard Schultz’s strategy is to redefine the core brand value. Although the company has a well-established image in the market in the past twenty years, the same distinctiveness and concept might not have the same appeal to the consumers in the second decade of the twenty first century. . Revise mission statement and objectives: According to the Starbucks Corporation report for Fiscal Year 2008, Starbucks aims to establish itself as one of the most recognized and respected brands in the world through continuing expansion of its retail operations, growing its specialty operations, and pursuing other opportunities by introducing new products and developing new ch annels of distribution. This strategy shows that Starbucks place their attention on the scale and leading position of the company, and underestimate the importance of branding and differentiation. Both the fast expansion and over diversification would hurt the brand concept and cover the outstanding features, which could be proved by the decreased gross margin showed in the following graph. STARBUCKS IN 2009 6 Gross Margin of Starbucks 0. 53 0. 52 0. 51 0. 5 0. 49 0. 48 0. 47 0. 46 0. 45 0. 44 2006 2007 2008 Gross Margin 3. Re-emphasize core value Although one of the â€Å"Starbucks Experience† location strategies is to cluster 20 or more stores in each urban hub, Howard Schultz have re-emphasized the core value of the company and reduced store expansions in 2008. Under operating expenses, it shows the total of $266. 9 million in restructuring charges as the company is reducing retail stores that are not profitable. The total net stores opened in United States were only 445 in 2008 year ended, compared to 1065 net stores opened in 2009 year ended. Starbucks also closed 64 stores in Australia due to the highly competitive environment of European culture influences. Instead of opening more retails in the city, the company has increased the drive-thru stores in the suburban locations in the U. S. and Canada, with approximately 35 percent and 31 percent of growth between 2007 and 2008. The decision of restructuring stores in 2008 cause a great lost in the company. However, the changes were necessary for the company to re-focus and re-define its core value of â€Å"Starbucks Experience† which leads the company to a fresh start in the following year. STARBUCKS IN 2009 7 4. Reconnect with customers through community projects and social responsibility â€Å"Perhaps we have the opportunity to be a different type of global company. One that makes a profit but at the same time demonstrates a social conscience†, this was Schultz’s vision for the company and showed his concern for re-establishing Starbucks social responsibility. In 2008 Starbucks held their annual meeting in New Orleans and used this as an opportunity to raise 10,000 volunteers to take part in various community projects to help rebuild this area. They have also created what they call Starbucks Shared Planet; which focuses on ethical sourcing, environmental stewardship and community involvement. Starbucks knows how important it is to their customers that they are socially responsible and offer something different and outstanding in comparison to their competitors. 5. Review operating practices Starbucks operates in both company-operated and licensed retail stores, and provides packaged coffee, tea and other branded products through a licensing relationship with partners. Starbucks installed new coffee making equipment, which cost millions of dollars, to emphasis the â€Å"hand-made† feature. They also revised the food menu and removed the non-core products to avoid the conflict among concepts. Around 84 percent of total net revenues during fiscal 2008 came from the company-operated retail stores. By maintaining and developing company-operated retail stores, it could help keep the leading position and the experience provided by Starbucks STARBUCKS IN 2009 8 based on the superior customer service to reflect personality and build loyalty. On the other hand, the strategy of licensing rights to operate retail stores and produce branded products through partnership improves the awareness of Starbucks and reduces barriers to developing new markets through the local advantage of partners. Although it brought up the operating expenses both in U. S. and international markets, upgrading the coffee machine is a positive approach to keep consistency with the â€Å"Starbucks Experience† and Starbucks image. Once the coffee is made individually from freshly ground beans, the customers would notice the â€Å"hand-made† feature, which results in a different perception from other competitors. Since foodservice sales accounted for 17 percent of all products and Starbucks gained about 5 percent of total revenues through providing food in the U. S. market, food is still a crucial element of the business. Therefore, it is necessary to seriously think about reinventing the food menu—distinguishing the conflicts and then removing the products that really affect atmosphere—rather than cancelling all the options. 6. Remain shareholder value Base on the annual report of Starbucks in 2007 and 2008, the company did not pay cash dividends to share holders, as well as in the near future (Starbucks, 20072008). The factors that influenced the stock price are comprised of company’s operational and financial performance, current and future industrial condition, and external economic situation. STARBUCKS IN 2009 9 In 2008, investors were concerned about the current situation of Starbucks as many companies were facing bankruptcy, the stock price went down quickly due to selling stocks to receive cash. In order to increase the confidence of shareholders, the CEO of Starbucks pronounced that company would keep forces on create long-term shareholder value. During the financial crisis, it was hard to let people believe in the future. Starbucks must make changes on their performance to satisfy the investors. However, the data shows that it was continuing deteriorated. The operating margin and net margin kept falling, which would disappoint shareholders. . 16 0. 14 0. 12 0. 1 0. 08 0. 06 0. 04 0. 02 0 2005 2006 2007 2008 Operating Margin Net Margin 7. Re-emphasize employee values to the company After Schultz returned as CEO, he was driven to reignite his commitment to his employees in which he referred to as partners. In the past the company has done many STARBUCKS IN 2009 10 things to insure a workp lace that people would be proud to work for. Schultz offers full health care benefits to all employees including part time; by doing this the company has dramatically lowered their turnover rate compared to other companies in the industry. During the hard time of reduced revenues Schultz realized the importance of bringing the full â€Å"Starbucks Experience† to each and every customer, and to do that he needed to have dedicated employees. Losing a knowledgeable and trained barista meant losing their valuable customer relationships that they have created. Schultz took human resource very seriously and made sure to meet with all levels of the company to reconsider and realign their purpose and principles and re-establish their connection with their customers. From Schultz’s perspective focusing on and improving the â€Å"Starbucks Experience† was just as important, if not more important than number crunching. Analysis and recommendations It is important for Starbucks to utilize three main stream strategic tools to see the issues of the organization and make action orientated plan. 1. SOAR analysis Strengths †¢ †¢ †¢ †¢ Strong business ethic Consistency within stores Many locations, equalling convenience Well known brand recognition STARBUCKS IN 2009 11 †¢ †¢ †¢ †¢ †¢ Clear positioning Loyalty to customers Strong company culture Quality of product International presence Opportunities †¢ †¢ †¢ †¢ †¢ Continuous cooperation with local farmers Conducting more research before quickly penetrating area Recognize consumer behaviour regarding new trends in the coffee industry Focusing on potential competitors (McDonalds/Tim Hortons) Sponsorship of local community events Aspirations †¢ †¢ Recreate â€Å"Starbucks Experience† Implement third place, â€Å"Home – Work – Starbucks† Results †¢ †¢ Measure by re-establishing SOAR every 3, 6, and 9 months Measured by aspirations becoming strengths and opportunities becoming results 2. Competitive analysis Based on the Porter’s Five Force model, the competitive environment that Starbucks faces could be considered in following five aspects: STARBUCKS IN 2009 12 Bargaining power of suppliers—low Starbucks purchases large amounts of coffee beans directly from farmers all over the world, and they have built a relative stable relationship with some high quality coffee providers. Under this circumstance, the suppliers are at a disadvantage in the bargaining. Bargaining power of buyers—low Individual customers who consist of the majority of the target market usually do not have bargaining power, compared with a large corporation. In addition, customers have gradually accepted the slightly higher price of Starbucks because of the increasing awareness that they are paying for not only the coffee and food, but also the service and experience. Threats of substitutes—medium The substitutes of coffee could be tea, juice, soft drinks, milk, and other kinds of drinks. Since the similarity among these groups is relatively low, especially for coffee-lovers, and the distinct flavor and functions, coffee is a special category. However, considering the experience that Starbucks wants to provide to customers, some other retail stores, such as ice-cream stores, would also target on the same market, which is the substitute of the â€Å"Starbucks Experience†. STARBUCKS IN 2009 13 Threats of potential entrants—high Starbucks has a large amount of potential entrants, including ? New ventures that have plan to enter the market and become big corporations or national chains ? ? Local independent coffee shops that provide high quality imported coffee. Large national chains, such as Tim Hortons and Burger King, that start to serve gourment coffee and become high-end. Since the entry barrier of the specialty coffee industry is relatively low, new entrants could share the market and develop their loyal customers without high technology and heavy investment. Rivalry among existing firms—high Most coffee-shop chains that provide high-end coffee and relaxing experience would be considered as existing competitors of Starbucks. The competitive situation would vary enormously from country to country. The most typical and powerful competitors are Caribou Coffee, McDonald’s, and Dunkin’ Donuts. ? Caribou Coffee is the nearest competitor in the U. S. arket, which has 495 coffee shops in 15 states and ? In 2001, McDonald’s-run coffee counters were placed inside of McDonald’s stores, offering espresso drinks as well as teas and pastries. Consumer Reports magazine rated McDonald’s regular coffee as better tasting than Starbucks as well as other STARBUCKS IN 2009 14 national competitors 6 years later. In January 2008, M cDonald’s announced it would begin installing coffee bars, called McCafe throughout its US stores, and priced , these drinks between $1. 99 and $3. 29. By comparison, Starbucks’ comparable drink versions were priced between $2. 65 and $4. 5, a premium of approximately one-third (Seaford Culp Brooks, 2008). ? Starbucks considered Dunkin Donuts as an indirect competitor that competed within the lower-end convenience-oriented fast-food market; however, Dunkin Donuts pursued an aggressive growth strategy that shifted its positioning to coffee, and reached the top selling retailer of coffee-by-the-cup in America at 2. 7 million cups a day by 2006 (Seaford Culp Brooks, 2008). Besides, Starbucks also needs to grab market share from Nescafe and Lavazza who introduced sophisticated easy-to-use coffee system that help customers make good coffee at home. . Value chain analysis Firm Infrastructure The â€Å"Starbucks Experience†, including the store design and layout, i nvolves a unique experience that the consumers will not receive it anywhere else. Starbucks also incorporates local stories and culture when designing the store; this creates a community involvement and more personal experience for the customers. Customers who buy Starbucks product are not only purchasing a simple beverage, they STARBUCKS IN 2009 15 are purchasing an experience and bring back the value for the company. Human Resource Starbucks believes in a workplace where people are treated equally and respectfully; also to inspire them and to share in its success. The company offers extensive training for their employees, to involve them in the company culture. Starbucks creates value and company morals for their employees by providing them with great health benefits and empowering them in the decision making process. Employees then create value for the company in return by selling Starbucks product. Technology Development Starbucks is always trying to be innovated in the market by introducing new technologies and creative products. The POS system provides efficiency when placing customer orders and it also detects sales on specific products for managers to monitor certain sales patterns. Starbucks’ Verismo machine also plays an important part of the company’s technology development by providing fast production of high quality beverage to their customers. Procurement Starbucks has a huge buying power internationally and has a great long-term relationship STARBUCKS IN 2009 16 with the local coffee beans suppliers. This helps the company control costs, in turn being able to create greater value and profit for the organization. Operations From selecting and searching high quality coffee beans all over the globe to the cup of coffee prepared by certified Baristas; Starbucks’ operation process creates a standardized guideline all across the organization by the efficient service from all level of employees and management. Outbound logistics Starbucks’ distribution system is expansive, including the storefront retail stores, licensed products and brand, as well as airport terminals. The company also offers mobile apps, and loyalty cards for regular customers to provide efficiency and show appreciation of their business to the company. Marketing and Sales In order to provide greater consumer value, Starbucks has created many loyalty programs for return customers as well as frequent promotions and new flavored beverages to keep its product interesting. The company also focuses on holiday season products such as holiday flavor beverages and merchandises to add value for the existing products. STARBUCKS IN 2009 17 Recommendation: Considering the increasing average price of coffee beans resulted from the resource shortages, Starbucks would face a higher costs of material and more powerful suppliers. Planning vertical integration to unite or own the valuable farms and plants could effectively guarantee the supply and control costs. Maintaining a clear brand image and position and holding the principles and concepts that have long been implemented are effective approaches to survive Starbucks within the fierce competition. The unfavorable opinions of customers towards VIA instant coffee make it clear that aggressive expanding and changing for competition would confuse consumers and lose market. Since in-store atmosphere, free Wi-Fi, and considerate customer service are no longer the unique features of Starbucks, it is necessary to create new ideas to develop â€Å"Starbucks Experience† that makes Starbucks different. Figuring out more ways that are consistent with the core value of the brand to integrate and re-launch the concept of â€Å"Starbucks Experience† to motivate customers by turning familiar things new. STARBUCKS IN 2009 18 Appendix Table 1. The table of figures showed in the graphs: 2008 ROA ROE Gross Margin Operating margin Net Margin 12. 67% 8. 88% 0. 470 0. 057 0. 036 2007 29. 45% 19. 72% 0. 00 0. 132 0. 084 2006 25. 32% 20. 19% 0. 517 0. 136 0. 086 0. 145 0. 092 2005 23. 65% 22. 21% STARBUCKS IN 2009 19 REFERENCES Grant, R. M. (2010). Contemporary Strategy Analysis (seven editions). Chichester: John Wiley Sons. PEW. (2009). The Impact of the September 2008 Economic Collapse. Retrieved January 31, 2013, from http://www. pewtrusts. org/our_work_r eport_detail. aspx? id=58695 Seaford, B. C. Culp, R. C. Brooks, B. W. (2008). Starbucks: Maintaining A Clear Position. Journal of the International Academy for Case Studies, 18(3), 39-57. Starbucks Corporation. (2008). Fiscal 2008 Annual Report. How to cite Starbucks in 2009, Papers

Yum Brands free essay sample

Describe Pizza Hut and KFCs investment strategy in Latin America. Latin America was appealing to Yum brands because of its close proximity to the United States, language and cultural similarities, and the North America free Trade Agreement eliminated tariffs on goods traded between the United States. Performing a country analysis was an important part of the strategic decision making process. Yum Brands had to accurately assesses the risks of doing business in other countries and regions in order to make good choices about where to invest. Expanding to a foreign market was attractive because of their large customer bases and comparatively little competition. Having a separate subsidiary in Dallas, Yum brands international, managed the international activities of all five brands. KFC and Pizza Hut accounted for almost all of the firm’s international restaurants. By Yum brands to expanding further in Latin American countries they advantage of franchising, which allows firms to expand more quickly minimizing capital expenditures and maximize return on invested capital. We will write a custom essay sample on Yum Brands or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This helps because the owners have a deep understanding of local language, culture, customs, law, financial markets, and marketing characteristics. Yum Brands also have a fix cost that could be spread over a large number of units and the company coordinates purchasing, recruiting, training, financing, and advertising. Company owned restaurants also allowed the company to maintain tighter control over product quality and customer service. Yum Brands knew that KFC could have a large success because chicken is a traditional dish in their country. . Using the country and industry risk categories discussed in the case, compare and contrast Mexico and Brazil as alternative investment locations. What risks are associated with investment in Mexico? In Brazil? What strategies can be used to minimize these risks? Mexico is one of the most attractive investment locations in Latin America having 105 million people. In 1994 the North America Free Trade agreement was signed eliminating tariffs on goods traded in the United States between Mexico. By 2004 85 percent of Mexico’s exports were purchased by US consumers, and 68 percent of on Mexico’s imports were purchased from the United States. 70 percent of Mexicans lived in the urban areas with a population of 18 million people. Many U. S firms had operations in or around Mexico City, which the fast food industry is well developed in the city. Chicken is a staple product in Mexico and helps explain KFC’s popularity. The fast food chains in Mexico was KFC (274 restaurants), McDonalds (261), Pizza Hut (174), Burger King (154), and Subway (71). Being a variety of restaurants brings intense competition. Brazil has a population of 182 and is the largest country in Latin America. Brazil is the world’s largest coffee producer and largest exporter of sugar and tobacco. Brazil has a strong industrial power it exports airplanes, automobiles, and chemicals. Brazil is one of the most important emerging markets, along with China and India. The fast food industry is less developed than Mexico. Many restaurant chains such as Burger King, Pizza Hut, and KFC built restaurants in the mid 1990’s but later closed because of poor sales. Eating customs play a huge role in Brazil, because consumers eat their big meal in the early afternoon, in the evening they have a light meal such as a soup or small plate of pasta. Brazilians rarely eat with their hands, preferring to eat with a knife and a fork. United States was faced with the challenge of changing the eating habits of Brazilians or convincing them the attractiveness of fast food. Yum Brands will have to face difficult decisions surrounding the design and implementation of an effective international strategy. They will have to plan and continue to be aggressive with investments in its primary market. Yum Brands improving brand equity in other regions where consumer acceptance of fast food is weak and the company has a limited operational capability. Latin America has to be a region of interest due to its geographical proximately to the U. S, cultural similarities, and NAFTA. Country Evaluation and risk assessment would be an important tool to developing and implementing an effective international strategy.

5 tips on managing different generations in the workplace

5 tips on managing different generations in the workplace Generations have their own rules. They speak their own languages, have their own cultural references, and have their own attitude quirks particular to their maturity. This can present a real challenge for the manager or human resources professional who must deal with a diverse staff of 20-somethings to 60-somethings.While a 2012 meta-analysis of published and unpublished data concluded that there are no significant differences between generations, there are significant differences between how younger employees and older people operate in the office, and the effective manager cannot ignore those differences. Here are six tips for coping with those generational differences head on and successfully.1. Recognize and embrace the differencesAs we’ve already hinted, one of the biggest mistakes you can make as a manager when faced with age-related issues is to pretend that the employee’s generation is not an issue. The key is to get comfortable and familiar with how age factors into work personality and adjust your approach accordingly. What will work when dealing with, say, a 25-year old employee who has motivation issues and a 45-year old employee who has become complacent after decades in the same office will not be the same.Understanding where different people are coming from can help you tailor your tone, spoken language, and body language. Don’t treat people differently- just communicate in the clearest possible way, depending who is on the receiving end.2. Break out of routinesStrict routines may be an effective way to acclimate young, new employees to their office duties, but having to do the same thing every day can be suffocating for the older employee. Feeling stuck in a rut can be both dehumanizing and demotivating for individuals who’ve been with the company for a long time.hbspt.cta.load(2785852, '9e52c197-5b5b-45e6-af34-d56403f973c5', {});Don’t downplay the disillusionment of an older employee who complains about feelin g trapped in a routine. Help that employee break out of tiresome patterns while still being able to complete his or her tasks. You may even want to consider having such employees swap tasks to keep their workday fresh. They will be happier and more productive with a little change in routine.3. Be aware of generation-based hurdlesThe workplace is constantly evolving, and this can be a problem for employees who’ve been at the job for too long. For example, an IT pro who has been in the same position for a decade may be slower to embrace new technology than a younger employee would. A younger IT worker may be short-tempered with an older one who doesn’t understand new computer-based problems.Ensuring that everyone is kept on top of the latest developments may clear out potential confusion and defuse potential conflicts that arise from age differences.4. Team them upThey may have different ways of speaking or different attitudes toward work, but all employees are people re gardless of age. This unfailingly becomes clear when employees from different age groups are encouraged to interact.Left to their own devices, employees may tend to bunch up in age-based groups. So it can be helpful to use team-building activities or develop collaborative projects that pair younger employees with older ones to foster a greater atmosphere of understanding in the office. If they have different skills particular to their ages, they may even teach each other a thing or two.5. Keep other managers informedAs you become more sensitive to the quirks of members of different generations in your office, be sure to share that information with your fellow managers. For example, if you find that younger employees are more likely to job hop- and a 2016 study did, indeed, report that a whopping 21% of Millennials left their jobs during that year compared to just 7% of older employees- make sure that your fellow managers are tuned into that issue so they can better hold onto young er employees they can’t afford to lose. After all, the name of the game is building a stronger staff with better communication between all managers and employees.Stay open, stay informed, stay communicative, and the employees you manage will be more satisfied and effective no matter how old they are.

The Colonial Names of African States

The Colonial Names of African States After decolonization, state boundaries in Africa remained remarkably stable, but the colonial names of African states often changed. Explore a list of current African countries according to their former colonial names, with explanations of border changes and amalgamations of territories. Why Were Boundaries Stable Following Decolonization? In 1963, during the era of independence, the Organization of African Union agreed to a policy of inviolable borders, which dictated that colonial-era boundaries were to be upheld, with one caveat. Due to the French policy of governing their colonies as large federated territories, several countries were created out of each of Frances former colonies, using the old territorial boundaries for the new country boundaries. There were Pan-Africanist efforts to create federated states, like the Federation of Mali, but these all failed.​ The Colonial Names of Present-Day African States Africa, 1914 Africa, 2015 Independent States Abyssinia Ethiopia Liberia Liberia British Colonies Anglo-Egyptian Sudan Sudan, The Republic of the South Sudan Basutoland Lesotho Bechuanaland Botswana British East Africa Kenya, Uganda British Somaliland Somalia* The Gambia The Gambia Gold Coast Ghana Nigeria Nigeria Northern Rhodesia Zambia Nyasaland Malawi Sierra Leone Sierra Leone South Africa South Africa Southern Rhodesia Zimbabwe Swaziland Swaziland French Colonies Algeria Algeria French Equatorial Africa Chad, Gabon, Republic of the Congo, Central African Republic French West Africa Benin, Guinea, Mali, Ivory Coast, Mauritania, Niger, Senegal, Burkina Faso French Somaliland Djibouti Madagascar Madagascar Morocco Morocco (see note) Tunisia Tunisia German Colonies Kamerun Cameroon German East Africa Tanzania, Rwanda, Burundi South West Africa Namibia Togoland Togo Belgian Colonies Belgian Congo Democratic Republic of the Congo Portuguese Colonies Angola Angola Portuguese East Africa Mozambique Portuguese Guinea Guinea-Bissau Italian Colonies Eritrea Eritrea Libya Libya Somalia Somalia (see note) Spanish Colonies Rio de Oro Western Sahara (disputed territory claimed by Morocco) Spanish Morocco Morocco (see note) Spanish Guinea Equatorial Guinea German Colonies After World War I, all of Germanys African colonies were taken away and made mandate territories by the League of Nations. This meant they were supposed to be prepared for independence by Allied powers, namely Britain, France, Belgium, and South Africa. German East Africa was divided between Britain and Belgium, with Belgium taking control over Rwanda and Burundi and Britain taking control of what was then called Tanganyika. After independence, Tanganyika united with Zanzibar and become Tanzania. German Kamerun was also larger than Cameroon is today, extending into what is today Nigeria, Chad, and the Central African Republic. Following World War I, most of German Kamerun went to France, but Britain also controlled the portion adjacent to Nigeria. At independence, the northern British Cameroons elected to join Nigeria, and the southern British Cameroons joined Cameroon. German South West Africa was controlled by South Africa until 1990. Somalia The country of Somalia is comprised of what were formerly Italian Somaliland and British Somaliland. Morroco Moroccos borders are still disputed. The country is made up primarily of two separate colonies, French Morocco and Spanish Morocco. Spanish Morocco lay on the northern coast, near the Straight of Gibralter, but Spain also had two separate territories (Rio de Oro and Saguia el-Hamra) just south of French Morocco. Spain merged these two colonies into Spanish Sahara in the 1920s, and in 1957 ceded much of what had been Saguia el-Hamra to Morocco. Morocco continued to claim the southern portion as well and in 1975 seized control of the territory. The United Nations recognizes the southern portion, often called Western Sahara, as a non-self-governing territory. The African Union recognizes it as the sovereign state Sahrawi Arab Democratic Republic (SADR), but the SADR only controls a portion of the territory known as Western Sahara.

Jhonsan&jhonsan case Study Example | Topics and Well Written Essays - 250 words

Jhonsan&jhonsan - Case Study Example Johnson & Johnson has used the diversification strategy for international expansion and gaining more competitive advantage in the market. It has developed over 200 companies across the globe and deployed 120,000 employees in these companies (Award, 2010). The corporate strategy aims at improving the Johnson & Johnson’s structure through proper organizational design. The design has led to the formulation of a decentralized divisional structure which has encouraged the proper flow of information. It has also enhanced working relationships between activities and functional department. Furthermore, the decentralized divisional structure has allowed different stakeholders with different skills to bring together different technologies and products. This has led to satisfying the unmet needs of customers (Award, 2010). Synergy has assisted the Johnson & Johnson to acquire sustainable competitive advantage. The CEO Weldon has come up with a decentralized divisional structure to foster synergy. He has used the structure in assessing external environment to identify a number of forces. The first one is demographic that determine how population growth have affected demand of Johnson & Johnson’s products not only across New Brunswick, USA, and New Jersey but also in 60 countries in the globe. The second one is socio-cultural factor that examine social issues such as poverty that affect the purchasing power of Johnson & Johnson’s products by the people in the globe (Award, 2010). The third one is technological factor which determines the available healthcare technology such as Cougar Biotechnology and breast implant maker. The next factor is political which examines the requirement that local and national authorities expect Johnson & Johnson to meet in supplying and handling health care products. The last one is economic factors that reveal how currency fluctuates and how it may affect the costs of

NIVEA Case Study Example | Topics and Well Written Essays - 750 words

NIVEA - Case Study Example optimization, it is important for the company to ensure that its budget is well allocated so that it can effectively meet its objectives in meeting the objectives outlined in its marketing mix (Jaccard 2013). This includes ensuring that besides achievement of the objectives, it should have a good and reliable supply chain for delivering the products to markets at the most convenient times as needed by the customers. Having made a good household brand, it is the company’s duty to ensure that it consolidates on its management and marketing strategies to consolidate its market share in the increasingly competitive world. With proper planning, Nivea Company can manage to rely on the success of this brand by creating and implementing growth and development strategies (Nivea Visage Young 2015). One of the ways to achieve this goal will be a consistent market research, which will ensure that the company understands knows new competitors emerging in the market as well as their competitive strategies (Jaccard 2013). In this regard, Nivea Company will be better placed to develop counter approaches that will ensure that it retains its market share and competitive advantage. Another important approach that the company will have to implement includes understanding methods of employee satisfaction, which will ensure that it has a pool of highly dedicated employees, who can discharge their duties in the interest of the company (Nivea Visage Young 2015). This is because, in many instances, the success of a company does not just rely on the best and innovative strategies that it develops but rather, it is their full implementation. Having the best and productive staff is as good as having monopoly over an essential resource in the industry, thus excellent company success. As the company heads in the future, its managers have a duty to ensure that they develop growth strategies ad systems that will cement its position as the market leader in the industry. According to Jaccard

Violence and Oppression in Wrights Black Boy :: Wright Black Boy Essays

Violence and Oppression in Wright's Black Boy "You are dead to me dead to christ!" In the following paragraphs, violence and oppression in Ch. 5 will discussed and analyzed through examination of Richard Wright's --author of Black Boy(1945)--use of diction, tone, and metaphors. Were people of his time to read this book it's probable that they would understand, wheather they agree with the author's point of view or not, the amount of violence and oppression witnessed by a boy his age. Richard Wright, through the the use of the words his senses produced, brought his past into light for the children of the future. He allows his readers to feel as he did under the light of strong persecution with the use of an intimidating, heartfelt tone. "The cosmic images of dread were gone and the external world became a reality, quivering daily before me. Instead of brooding and trying foolishly to pray, I could run and toam, mingle with the boys and girls, feel at home with people, share a little of life in common with others, satisfy my hunger to be and live." Wright fills the chapter with a calm and mesmorizing tone; like that of a preecher drawing his audience into a hymm. Omisdt violence, under anger and fear, Wright converses with the reader as though he were a youth leader telling a story to a group of boyscouts outside by a campfire. His spellbounding words chant the reader into his world and produce a map through which the reader follows his life in the shadows of others. " I mingled with the boys, hoping to pass unnoticed , but knowing that sooner or later I would be spotted for a newcomer. And trouble came quickly- a bloabk boy came bounding past me, thumping my hat to the ground and yelling." To keep his audience from dazily drifting into a state of semi-consiousness, Wright interjects into his prayer with action in an excited and staggering tone. "A blow landed on the back of my head. I turned and saw a brick rolling away and I felt blood oozing down my back. I looked around and saw several brickbats scattered about.