Hydroelectric in Philippines Essay

It is known to us that energy become more and more important to human beings. People can not live without energy. They use energy everywhere, but pew of them can give a clear definition of it. Because of people’s widely use, the energy on the earth reduces steadily, people are trying o find the energy which can be renewable. Energy is the thing which has the ability to work. It can be stored or be a poverty of an objects motion. It can move from one object to another, and defines the capacity of system to do work. Obviously, renewable energy is the energy which can be used over and over again, from natural sources. There are so many renewable energy people use nowadays. For example, they use solar energy, the wind and the hydro power. From year 1981 to 1991, renewable energy developed very fast, and the following text may concentrate on the hydro power. Hydro power is the energy driven by water turbine, People always use it to produce electricity. The falling water drives the turbines, and the turbines in turns to drive the generators. Then the generators translate the turbines’ mechanical energy into electricity. The hydrologic cycle produces neither atmospheric nor the normal pollution. Hydro power has been used since ancient time, and is can be used for grinding floor and performing other tasks. In 1878, the world’s first hydroelectric station was developed in NORTHUNLAND, and by 20th century, it become the largest part of renewable energy all over the world. Everything has two faces. Though the hydroelectric has a lot of advantages, for its low cost and low pollution, still it has some disadvantages. In some Asian countries, like Philippines and China, people can see the hydroelectric production clearly by year. There are some hydroelectric stations which are typical in these countries. Like the Bela in Philippines and the Three Gorges Dam in China. What’s more, we can also know something about the development of hydroelectric in these countries. The following text will give more details about the hydroelectric production, the hydroelectric stations and the future development of hydroelectric in Philippines and China. Body: â…  .Hydropower production by year Since the first Edison hydroelectric power plant begin to use in 1882, September 30th, (industry archive logy review, 1987), hydroelectric become fast developing. During 1981 to 1991, it developed very fast. It can be seen clearly that hydroelectric become more and more important in human’s daily life, and also they can see the trend of development of hydroelectric in Philippines and China. In Philippines, people can get the information directly from the line chart that there was a fluctuation in it. It produced about 3.8 billion KWH in 1980, and had a tiny increase reached at 4 billion. Then it fell back to 2 billion KWH in 1983 and raised again. It has risen steadily from year 1983 to year 1986, from 2 billion KWH to 6billion KWH. Things looked the same from then on, but the trend is increasing. By the year 2003, the production of hydroelectric power was more than 10 billion KWH. After that, it remained steadily, by the year 2010, the production of hydroelectric was 9.8 billion KWH. Hydroelectric in Philippines takes 19% of all electricity consumption and the rate constant for decades. (Bronuyn-W, 1998) However, in China, the hydroelectric production grows steadily. It has risen from 80 billion KWH in 1980 to more than 300 billion KWH in 2003. People can predict from the line chart that it will be a more and more part of energy in Chinese electric production. It takes about 49% of all the renewable energy in China. (World Institute, 2010) Hydroelectric is very important, not only in these two countries, but also all over the world. In Democracy Republic of Congo, Paraguay and Brazil, hydroelectric takes 85% of their electric. In the USA, more than 50% of electric comes from it. That means hydroelectric really plays an important role in people’s life. â… ¡.Examples of the hydro electric station For the reason that hydroelectric really take a great part in electric production, there are some hydroelectric plants which are typical in Philippines and China. In Philippines, the AGUS-â… ¡ station may be the earliest one. It located on Lanow del Sur. The operator of it is National Power Corp. It can produce 3*60 MW Francis and still it can be used though it was been built in 1979. The BELEA, which is the biggest one in Philippines is located on Negros Occidental. It has been built in 2008, and can produce 1*39 KW crossflow. The operator of the BELEA is WINROCK international-preview Negrs. In China, the Three Gorges Dam should not be missing. It began to built when in December 1994, and was finish in May 2006. It is expected to produce 18.2 billion pound watts, and it is the biggest hydroelectric station in China. In 2008, October, all the equipment in the Three Gorges Dam were put into use. Evidently, it dose solve the electric-short in eastern China. Another hydroelectric station in China which usually be ignored is call XIN’AN River Station. It was built in 1957 and finished in 1960. It is the first station China designed and built itself. It has been working for more than 50 years and it can produce 1.96 billion KWH per year. â… ¢ .The influence to Environment and People Everything has two sides, no exception for the hydroelectric station. As stated in the previous paragraph, the hydroelectric station has some bad effects. Generally, the disadvantages can be listed as follows. For the reason there are so many hydroelectric station on Changjiang river, there will take it for example. The most direct impact of cascade reservoirs is that continuity of river is break. Though it may make people have more place for cultivation, it may caused some endangered species died out. It will damage the habitat of the fish even the HUCHO BLEEKERI, a kind of rare fish has already died out. The disappearing of the species may affect the structure and balance of entire ecosystem. In some places, to build a reservoir will make the effiency of water utilization, anyway, the flood and low-flow process of ricers is weakered at the same time. Because of that, some species which live based on it may be damaged. The construction of large-soale will produce obvious impact on the habitat since reservoir impoundment. Because of the slow down speed of the rivers in reservoir area, the water receiving sewage ability and self-purification capacity will reduce. Besides, many floodplain is submerged by reservoir, it will cause the problem that may farmland will lose. The hydroelectric station also has the influence to the climate. It will impact on the temperature, the rain fall and so on. Moreover, it may induce geological such as earthquake and landslide. â… £ Future development of hydroelectric Though the hydroelectric stations have some bad effects, anyway people now are trying to develop it. It has several advantages. It has the low power cost. It is known to people that many plants can service for 50 to 100 years. It is much cheaper than fossil fuels. It can also reduce the CO2 emission which makes contribution to alleviate the green house effect. And it is suitable for industrial application and flexiable to use. What is more, it also provide facilities for water sports, and some plants even become tourist attractions themselves. In all, people are coming to realize the importance of hydroelectric. They have begun to try their best to develop it. It can be predicted that the hydroelectric will develop faster and faster, not only in Philippines or China, but also around the world.

Reaction Paper of Finance

LI,MINGJIE(JACKSON) Reaction paper In last time, we study chapter 5 to chapter 10, these chapter I have some review. In the chapter 5 I learn what is utility and what is marginal utility. The equimarginal principle: the fundamental condition of maximum satisfaction or utility is the equimarginal principle. The gap between the total utility of a good and its total market value is called consumer surplus.In chapter the relationship between the quantity of output(such as wheat, steel, or automobiles)and the quantities of inputs (of labor, land, and capital)is called the production function. And technological change refers to a change in the underlying techniques of process of production, as occurs when a new product or process of production is invented or an old production or process is improved. The business organizations: business firms are specialized organizations devoted to managing the process of production.In chapter3 one part is economic analysis of costs: total cost can be brok en down into fixed cost and variable cost. Marginal cost is the extra total cost resulting from extra unit of output. Average total cost is the sum of ever-declining average fixed cost and average variable cost. Useful rules to remember are : TC=FC+VC AC=TC/q AC= AFC+AVC In this chapter important is supply behavior of the competitive firm. Supply behavior in competitive industries. Special cases of competitive markets.Efficiency and equity of competitive markets. Those are important parts in the this chapter. Chapter 9 important kinds of markets structures are monopoly, where a single firm produces all the output in a given industry: oligopoly, where a few sellers of a similar or differentiated product supply the industry: monopolistic competition, where a large number of small firms supply related but somewhat differentiated products: and prefect competition, where a large number of small firms supply an identical face downward-sloping demand curves.In chapter10 part of behavior of imperfect competitors: recall the four major major market structures: perfect competition is found when no firm is large enough to affect the market prices. Monopolistic competition occurs when a large number of firms produce slightly differentiated products. Oligopoly is an intermediate form of imperfect competition in which an industry is dominated by a few firms. Monopoly comes when a single firm produces the entire output of an industry. And has another important parts: one is game theory, one is public policies to combat market power. Above is my feeling. Thank you for check.

Role of HR in developing talent at work Essay Example | Topics and Well Written Essays - 1250 words

Role of HR in developing talent at work - Essay Example It is evidently clear from the discussion that dynamic organizations try to identify the top potentials in the company and try to leverage their capabilities. It is the competence that organizations must possess for attaining a sustainable competitive advantage. There have been contradictory views regarding the contributions HR has made towards developing and managing talents. According to the findings of the research conducted by the Corporate Leadership Council (CLC), only 30% of the organizations were found to apply disciplines of managing talent apart from their regular functions like recruitment, selection, training, compensation management etc. According to another survey conducted by the same institution in 2006 on the critical skills that the HR staff must possess, the HR functions rated themselves according to the functions that they considered themselves best at applying. 41% of the organizations were of the opinion that they were best at applying methods associated with re cruiting new staffs in the organizations. The survey clearly reflected the fact that only 25% of the organizations surveyed were good at applying talent development strategies at the workplace. The tendency of HR has always been inward-looking. Also, it has been particularly over conscious of its role in adding value to businesses. According to Ulrich, when he tried to push HR towards attaining a more strategic role, people belonging to HR functions were reluctant to work in a strategic manner. Their focus was more on themselves rather than on the business. Thus issues like development of talents in the workplace with the aim of growing the business took a backseat and the emphasis was more on developing themselves independently.

Introduce a new product (you pick product) Research Proposal

Introduce a new product (you pick product) - Research Proposal Example It has fully utilized primary sources like the questioners and personal interviews together with a variety of secondary sources in gauging the demand for the named product in the beverage industry. The analysis obtained positive results whereby most people who like soft drinks more often than not buy cakes or biscuits as they claimed that the combination of the two delivered much fulfilling refreshment. However, others were quite skeptical of the product and therefore much advertisement and sensitization is necessary in order to convince more people to like the product. The proposal also recommends that one method of popularizing the product, by distributing the Cola Biscuits together with other Coca-Cola products like Fanta, Coke, and Sprite. This way they will attract more attention and consequently generate more revenue through increased sales. Case studies have also shown that most Coca-Cola customers usually take the beverages with other snacks like cakes and biscuits. This pres ents a great opportunity for the Coca-Cola Company to expand more by diversifying its products to suit the customers’ needs. Finally, this proposal recognizes the heightened competition that the brand new product will face and recommends for an aggressive marketing strategy to counter similar products from other companies. Since its inception, the Coca-Cola Company has been operating in the beverage industry with its main products being the soft drinks and mineral water. However, there are many supplementary products sold together with Fanta, Daso, Coke, and Sprite. Most people like taking Sodas with biscuits, cakes, or doughnuts but their main allure is the biscuits. In every Coca-Cola retail store, there are these products from other companies meaning that these go hand in hand with the products of the Coca-Cola Company. Therefore, there is need by the Coca-Cola Company to tap into these prospective customers to be able to sell only its products in the retail stores spread

Task Management Communication Plan Essay Example | Topics and Well Written Essays - 2000 words

Task Management Communication Plan - Essay Example By laying down directives, involving internal and external communication and management of information flow; organizations cater to manage conflicts that escalate as a result of diversity issues (work force diversity), discrimination issues and power issues. In the modern day world, managers face key challenges, in terms of finding adaptive communication strategies that are directed towards the creation of an open and flexible work culture (Samson and Daft, 2012). This is where the relevance of this essay lies. This essay will highlight certain entrenched conflicts that arise in an organization and outline effective communication strategies that organizations can implement in order to mitigate such conflicts. For the purpose of fulfilment of this assignment, the company that will be chosen for evaluating communication strategies is Toyota. The following section will include a brief organizational summary. Thereafter, in-depth explanations will be provided regarding the conflict issue s that arise within the company and strategies adopted by the company in order to mitigate such issues. The critical analysis of the working environment will be done covering aspects such as, structural issues, cultural ethos, prevailing work culture, work relationship issues, network analysis and the best practices. Finally, recommendations will be made suggesting alternative communication strategies that can be adopted by company in order to ensure and efficient and effective working environment. Toyota Motor Corporation, headquartered in Aichi, Japan, is the largest automobile manufacturer, as of 2012, which offer a full range of models from mini cars to large trucks. The company also has many diversified operations that include telecommunications, prefabricated housing and leisure boats. The company’s global vision explains the corporate image and reputation that the company, alongside its specialization in the field of automobiles, strives for and expects to achieve

Marketing Products Assignment Example | Topics and Well Written Essays - 1000 words

Marketing Products - Assignment Example On the other hand, the company also ensures that its product is of high quality in order for other consumers to purchase its products as opposed to those of the competitors. Therefore, the key product offered is beer. The product has been the key product for the company for a number of years now. However, in order for the company to diversify the number of customers that it serves, it also includes other beverages in order to accommodate customers who might not be comfortable with drinking beer. However, the company manufactures beer only while it outsources the other beverages. The major characteristic of beer is that it requires a large number of raw materials such as sugar and water. Water is one scarce commodity that is very costly to the company since; it is not readily available. In addition, the sales of beer are also characterized by seasonal changes. For instance, the sales are always at peak during end month, and low pick during mid-month. This is due to the fact that; indi viduals tend to overspend when they have a lot money at their disposal. Beer is also a product that is not easy to market, this is because; it is not every individual in the society who takes beer. The service component that is associated with the product offered by BERVET is mainly entertainment. The company ensures that its customers are well entertained by the drinks that they serve. The company mainly promotes entertainment to promote its products to the customers. Therefore, customers will be mainly attracted to purchase the goods in search of entertainment. Therefore, entertainment is like an additional service that is offered to the consumers who purchase beer that is manufactured by BERVET. The service will greatly aid in enhancing the product through attracting the number of persons that purchase beer for the company. This way, the company will be able to also attract customers who do not take beer. Thus, other beverages offered will also have obtained market through the se rvice. The service will also help in creating appositive image for the product. This is because; the company will be able to compete well with its competitors since; customers will find services that are not available from the competitors. Therefore, when more customers are attracted, the company’s sales will increase by a large amount (Wood,  2003). Currently, BERVET Company has already developed more than 5 product lines. However, the company can still be able to expand its product line in order to increase its sales of beer. This will be mainly through innovation. The company could come with new ideas of brewing different types of beers. This way, it will be able to come up with different types of products. Expanding of the product line can be done in terms of gender, age and income earning range. This is where by, individuals of different age groups will be targeted differently from individuals of different age groups. In addition, persons earning different levels of in come will be targeted differently. This will also be accomplished through innovation since; the company could come up with expensive products that will be meant to specifically target people that earn high incomes. In terms of depth, the company could increase its product line by targeting a large number of persons to purchase its commodities (Wood,  2003). In addition, it could also increase the depth of its customers by increasing the size of the market, and the amount of

Business Plan Essay Example | Topics and Well Written Essays - 2500 words

Business Plan - Essay Example He considered today’s emerging potential for retail business and the customer orientation towards buying a product after seeing, touching and try them. The firm has found potential huge for its product to sell. The main advantage is the down town city location that could fetch good customers for its product Buster initially has an objective to expand its business operations by starting one more new store after duly considering the cost of expansion, available labour, customers etc and to own a chain of 10-15 stores in downtown office building. It is planned to increase the sales by minimum 15 percent against the present sales of $1, 50,000 to $3, 00,000 and revenue by 20-25 percent. He has a plan of delivery of products at home points after three years of its operation in the new location to boost the sales and build the client base further. The expansion programme requires the new investment amounting to $20200. He is investing only $3000 out of his savings and rest of the investment is mobilized in the form of bank (long and short term credit), sundry creditors and finance creditors. The new store needs more inventories, computer, printer, Fax, and a Phone to make it more efficient and profitable. Jones employs two workers considering their professional outlook in managing retail stores, their qualification and their attitude for adjusting to the changing environment. Though there are big retail shops offering varied products in the location, but there is no threat for customers visiting Busters. There are few such small retail stores offering similar products in the vicinity posing competition. But he did not consider it seriously as competition since there is growth of retail business at a rapid pace. However this competition can be managed adapting to value based customer service and ensuring customer delight. Jone’s vast experience in doing this

Linear programing Assignment Example | Topics and Well Written Essays - 500 words

Linear programing - Assignment Example The General Manager has also decided to produce 600 units for the current production period. Finally, an ongoing contract with the business distributors requires that at least 150 units have to be distributed through this distribution channel. The problem is to establish the distribution strategy for the radios that will maximize overall profitability of the new radio production. If a change in the marine distributors channel took place and the profit per unit fell to $80, the optimal solution changes and the total maximum profit is reduced. This can be attributed to the fact that $80 is an objective function and thus has an effect on the entire value of profit incurred. Producing two units for the mail order distribution channel results into an increase in the advertising, the sales effort also increases, the production units’ decreases and the business retail restriction increases. The non positive values will be eliminated and hence the scenario described above. If the marketing director changes the Business distributor’s restriction and increases it from 150 units to 300 units, this will increase the cost of advertisement and hence the cost of production but no major increases will result on the final sales. The resulting profits do not increase and in some scenarios losses may be incurred. g) There is a possibility about a new distribution channel. If it has the same personal sales effort and advertising cost of the Mail order, but a profit per unit of $110, would you recommend it? Would the optimal solution change? Why? It would not be recommended that a new distribution channel which has the same personal sales effort and advertising cost of the Mail order. The optimal solution would not change of the number of units’ personal sales per unit sold remains zero. The absence of any value on the personal sales per unit sold has an effect in the optimal solution

Criminal Law Essay Example | Topics and Well Written Essays - 2000 words - 3

Criminal Law - Essay Example istorically, in some areas, property was owned by the monarch and it devolved through feudal land tenure or other feudal systems of loyalty and fealty. Though the Napoleonic code was among the first government acts of modern times to introduce the notion of absolute ownership into statute, protection of personal property rights was present in more feudalist forms in the common law courts of medieval and early modern England. Property – Definition Blacks Law Dictionary states that "in the strict legal sense, [property is] an aggregate of rights which are guaranteed and protected by the government" and that the term "includes not only ownership and possession but also the right of use and enjoyment for lawful purposes." On the contrary, Barrons Law Dictionary classifies property as "ones exclusive right to possess, use, and dispose of a thing" [ . . . ] "as well as the object, benefit, or prerogative which constitutes the subject matter of that right." Divisions Property law can be divided into personal and real property. Real property concerns itself with rights in rem, or relating to land. Personal property concerns itself with rights in personam, or relating to chattels. Using contemporary descriptions, property has been depicted as oscillating between competing models of property as a fact, property as a right, and property as a responsibility. Declared ownership in and of itself is insufficient to constitute property in a legal sense. Rather, the idea of property arises where one can have his/her right to land or chattels respected and enforced by a court of law. Therefore, to possess good title (and thus enforceable rights) on property one must acquire it legitimately, according to the laws of the jurisdiction in which one seeks enforcement. Real property does not just talk of the ownership of property and buildings — it also involves several legal relationships between owners of immovable property (real estate) that are basically conceptual

Hume Versus Kant Essay Example for Free

Hume Versus Kant Essay Hume and Kant offered two differing views on morality. Humes philosophy regarding moral theory came from the belief that reason alone can never cause action. Desire or thoughts cause action. Because reason alone can never cause action, morality is rooted in us and our perception of the world and what we want to gain from it. Virtue arises from acting on a desire to help others. Humes moral theory is therefore a virtue-centered morality rather than the natural-law morality, which saw morality as coming from God. Kants notion of morality stems from his notion of one universal moral law. This law is pertinent to all people and can be used at all times before carrying our actions According to Kant, you ought to act according to the maxim that is qualified for universal law giving; that is, you ought to act so that the maxim of your action may become a universal law. While Hume and Kants moral theory differ dramatically, they share one quality and that is the fact that neither centers around the concept of God and his will. Humes theories may be considered by some not really philosophical theories at all. It is to say that he is not searching for that philosophical life that is seen in a Plato, or Augustine. He believes that capitalism promotes prosperity for people, and that only science and math is the realm for reason. To discuss Humes ethical theory you have to look at the central theme, which are feelings. Humes ethical theory says that moral judgments are made on feelings as oppose to reason. Humes feelings are based upon the belief that people make moral judgments because it is useful to society. He uses the examples of benevolence and justice to support this idea. Benevolence leads to happiness in society, which is the main basis for moral approval. Justice, for Hume, is regarded as good because again it is useful to society. He says that justice would not exist if everybody was not selfish, and one of its main uses is to protect private property. Justice for Hume is a very business oriented type of justice in which a transaction that is made must be suitable for both parties. If humans were not selfish than justice would not even come to mind in these types of situations because the transaction would be totally dominated by one individual, and that would not be justice. Humes view poses the question, which is better social peace or economic prosperity? Hume states that human beings are an animal whose life consists of worldly pleasures, and this is what leads them to a happy life. Again we see a clear contradiction to what traditional philosophers believe to be a happy life. As you can see Hume leaves out the spiritual, reasoning, and thinking part of human nature. Leaving all these factors out he comes up with his contributions to the well being of society. He believes that chastity, confidentiality, avoiding gossip, avoiding spying, being well mannered, and loyal are what can lead you to becoming prosperous. Hume looks at this from being prosperous only from a business-orientated point of view. People do like to become prosperous and have economic growth, but is that all that matters to us as humans? For Hume these feelings are justified because he says that we naturally care about other people and if we do not suffer from something we have a natural inclination to help others out. Hume finally comes a conclusion to his ethical theory in which he states that there are only four reasons in which to do morally good: useful to society, useful to oneself, agreeable to oneself, agreeable to others. Actions that are morally good are categorized into one of these four categories. These actions must be made with sentiment or feeling over reason, for Hume states man is a creature with feelings and reason lets us figure that out. Hume believed that reason is, and ought only to be, the slave of the passions. He argued that reason is used to discover the causes of pain or pleasure, but it is the prospect of pain or pleasure that causes action, not the reasoning alone, as that is entirely indifferent to us. This notion of always being motivated by pleasure or pain is very important, as it follows from this that when we act morally, it is a desire that makes us act and not reason. Since morals, therefore, have an influence on the actions and affections, if follows that they cannot be derived from reason, and that because reason alone, as we have already proved, can never have any such influence. Kant takes a different approach in his ethical theory and the understanding of morality and what is morally good. For Kant moral goodness is defined as goodwill, and that we as humans have a moral obligation to do what is right. He says that moral worth is seen much clearer if someone does things out of duty. Opposite of what Hume says Kant believes that feelings and inclinations are irrelevant and that feelings are not what drive moral obligations. Then how does Kant justify what is morally obliged? He has cancelled out feelings, and has left it as an obligation for people. For Kant first you must take out all feelings. Moral obligation must be binding for everyone. If any action cannot be approved be everyone than it is not morally obliged. The standard for moral standards has to be universal or absolute. Kants ethical theory is put into a comparison of categorical and hypothetical imperatives. Hypothetical imperatives are looked upon as recommendations or laws by others. This is to say that it is someone else or some other thing is telling us what to do. Hypothetical imperatives are unproblematic. They are straightforward sentences that express mundane statements of fact. Categorical ones, on the other hand, are highly problematic. Categorical imperatives deal with autonomy. These are the moral obligations that Kant believes in, the morally obliged actions. In Kants view, only if a person is acting solely on the categorical imperative such as doing something out of duty, can the act be morally good. This is because if somebody is acting out of the hypothetical imperative, he/she has an ulterior motive in acting in that way and are therefore not acting out of duty but are pursuing a certain end. They need not be acting in self-interest, but if they act because of a desire to act in that way, this is not morally worthy. You can still act morally if it gives you pleasure, as long as the reason for your action is solely out of duty. For instance we ought to help other because you may need help some day. What makes it valuable is that it is valuable in itself. It allows us to treat ourselves and others with self respect. It is clearly seen that in Kants theory there is no feelings or emotions attached to these theories only obligations that will benefit all of society. When taking into account who is right or wrong, the type of person you are comes into play. Some individuals live their lives based off of feelings and emotions alone, and most decisions that these types of individuals make are what is going to them happy or something that could perhaps make them sad but another group in society happy. Then there are the other groups of individuals that do things without thinking of who they will affect but only take into account what they believe they should do based on societys circumstances. Ultimately the decision on how to make moral judgments should be entirely based on you and your character and your experiences. If a person has been hurt by trying to be morally good then his feelings will come into play no matter how he made his original decision. If this person was making a decision based on obligation and he still got hurt from it in the long run then his next decision could be very feeling based. These two decisions on morality may continue to intertwine with each other. Hume and Kant are similar in that their moral theories are not the will as laid down by God, instead they see morality as embedded in humans themselves. However from here the theories diverge. Hume sees moral judgements as being caused by sentiments of pain or pleasure within an agent as reason alone can never motivate, whereas Kant see the only moral actions as being those caused by reason alone, or the categorical imperative. Both theories have difficulty with coming up with absolute moral laws Humes theory because absolute morality would appear to be impossible if morality is based on an individuals sentiment, and Kants theory because it cannot prove the existence of the categorical imperative.

Concepts of Ethics and Professionalism in Business

Concepts of Ethics and Professionalism in Business Introduction Change is the only constant factor in everyday life. It is witnessed from the Stone Age to civilized age. When change affects life it also affects the environment and business. The business environment becomes extremely complex as change inflicts variety and diversity leading to deep and fundamental ways. Change in the values, environments of business based on the expectation of society has alerted business houses to realign its priorities. The changing economic, political, legal and social environment has also made the business and businessmen to consider the ethical approach to business. Therefore, there is paradigm shift from the goal of maximization of profit or wealth to ethical means to achieve them. The last 150 years have been marked the world over for rapidity of change ushered in by the advent of technology and industrial revolution. This period has also been marked for its attempt to generate unquestioning faith in human reason and intellect. The last century has witnessed that the intellect are becoming the cornerstones of the society. The rapid changes have improved the standard of living, also establishing a lot of sensible relationships in and around the society. There is a growing realization all over the world that ethics is virtually important for any business and for the progress of any society. Ethics makes for an efficient economy. Ethics is good in itself, ethics and profit go together in the long run and ethics alone can protect the society. An ethically responsible organization is one, which has developed a culture for caring for the people and for the betterment of society as a whole. Ethics has a considerable influence on the economy for efficient and smooth functioning. The government, the laws cannot always resolve certain key problems of the society and business. Ethical behavior enhances the quality of life. An ethically based economy can do wonders in the way of creating wealth or society. The task of business is to optimize the outcome of economic activity. It is the economic environment of business, which is the primary consideration in evaluating the business tactics. The present day economic environment of business is a complex phenomenon. The economic relations with the government, public, society and community influence the trend and structure of economy. People and society are part and parcel of an organization. People want and need to be ethical not only in their private life but also in public. The people are the ultimate sufferers if the affairs of the organization were conducted unethically which are detrimental to the society. Therefore, they have a concern over this. Over the last two decades, there has been a shift in the attitudes of corporate and their executives towards ethics. A silent revolution is in under way in business ethics today. The ideas, beliefs and attitudes associated with the profit ethic are being challenged as never before. The histori cal idea of the divine right of capital no longer applies. The changes in the values, cultures and customs lead to change, which in turn lead to re-engineering of ethics. The world of business ethics is quite broad and its tentacles spread into a number of areas in the larger sphere of business society relationship. The social responsibilities of businessmen, for instance, clearly involve ethics and morality. There is always a doubt in the mind of the businessmen about what is and what is not ethical. It is difficult to understand business or business society relationships, without knowledge of the ethics. Business ethics is what society expects from business. Mark Twain once said: To be good is noble. To tell people how to be good is even nobler. *FCS, Senior Reader in Corporate Secretaryship, Alagappa University, Kraikudi. **Ph.D. What is Business ethics? Ethics is defined as the study of standards of conduct and moral judgment. Ethics is the study of what ought to be, what is the ultimate good and how to achieve it. People have always thought that the primary purpose of business is to serve society. Business must have a social commitment otherwise business cannot enjoy social sanction. It is a study of human actions in respect of being right and wrong. Ethics is an attempt to discover that ought to be. Ethics forms critique of both ultimate values and goals and the means used in trying to achieve them. The history of business ethics displays a growing recognition of the need to examine the social transformations that have impacted organization, management and society. Ethics is a mass of moral principles or sets of values about what conduct ought to be. Ethics is a written or unwritten set of codes or principles governing business or profession. Ethics is a study that constitutes good and bad conduct, including related values. It has to do with fulfilling the relationship with people and society at large. When this applied in a business context, it becomes business ethics. Ethics in business has become one of the most challenging issues confronting the whole business community. Establishing ethical climate is like starting an endless marathon. The first step should be to change unethical behavior. It is an on going process. It never stops. Ethics is a contract between the business and the community based upon certain values of principles. An effective program of ethics requires involvement and commitment from all. The constituents should ensure commitment towards ethical behavior at all levels. Ethical consideration and ethical behavior should run thro the marrow of the bones and should be carried by the capillaries to all parts. Maximizing return has made a paradigm shift towards to the concept that it should be ethically achieved. Mr.J.R.D. Tata in his own words, ethical values have too often been ignored in recent years in the belief that quicker profits would be result. Major attributes of ethics Concept : The field of ethics may be conceived as a discipline, science, study or evaluation. Content : The subject matter of ethics is concerned with what is good or bad, right or wrong. Judgment : Judgment is required to determine whether human action is ethical or not. The judgment concerns the overt act, not the motivations behind it. Behavior and its cause is that what which is judged. Standards : Judgment is based upon standards, which are, of course, values. Values : The final element of ethics therefore, is the set of values and criteria used as standards for judging human conduct. Need for Ethics Business ethics are very much influenced by social movements, social system and social preferences. No business can survive or grow without social harmony. Individuals values, however best they may be, are not sufficient to attain the maximum level of ethical performance. Ethics and social responsibility are necessary for the survival because of the highly competitive climate that prevails today. The climate in which business operates has become cold and unfriendly to day as a result of revelations of unethical behavior that have rocked nations and the world. Ethics is crucial for an efficient and smooth operating economy. An ethically based capitalism can do wonders in the way of creating wealth for society. According to economic philosopher, Adam Smith: that our system of capitalism does not work well unless it has the moral co-operation of its participants. Jewish theologian wrote: Its what people do when they all are alone, when one is looking that makes all the difference betwe en civilization and the jungle. Ethics is important because either government or legislation cannot do everything to protect society. Technology races ahead much faster than the government can regulate. People in an industry often know the dangers in a particular technology better than government regulators who sit at a distance. Ethics is good in itself. Ethics is important to create a smoothly and efficiently running economy. The Bhagavad Gita asks us not consider only the fruits of our actions. It invokes the notion of passionless action. The concept of Gita of doing ones duty without seeking for the fruits, Manus concept of inheriting debts as well as property, the Mauriyan idea of accountability provide a basis for Gandhijis belief that politics and business must work hand in hand for the development. Factors having impact on ethics Ethical considerations vary by class, structure, economic group, industry, professional group and so on. Business ethics has to be on par with the ethical code of the society in which it operates. It is essential that the business adheres to the well-established ethics. The following are the factors that creates the basis to ethical consideration (a) Value, (b) Culture,and (c) Transformation. VALUE Values are additions or accretions to the image. Values are not fixed. They change. As they undergo change the society and its constituents also have to undergo the process. When the values undergo a change it takes the culture along with it. Values are crucially important factor in business relationships. Values create credibility with the public. It will certainly add value to the concern and create more credibility by being morally responsible and accountable. This creates a confidence in those who are directly and indirectly involved. An organization perceived by the public to be ethically, socially concerned will be honored and respected even those who have no knowledge of its actual functioning. Not only this enhances the credibility within itself but also with its employees. It creates a feeling of oneness among employees having a common goal. For an individual business values derive from multitude of sources, such as mission of business as a social institution, the nation in which business is located, the type of industry in which it is active and the nature. Over a period of time value become institutionalized with regard to business and society. These values perform two important functions. First they form as a guide to business environment. Second, they become strong motivators for people in business. They become the key factor in the system relationship of business with society. Business has certain rights but it also has certain responsibilities to society and in turn society has certain rights and responsibilities in regard to business activity. Value-ethical attitude helps management for better decision-making. The decisions are in the interest of public, society and environment. Ethical decisions are in the interest of public, society and environment. Value added rather based ethical decision-making will make an organization and its decision-maker to look into all aspects of economic, social, politico-legal aspects. CULTURE Culture is described as human environment of humans. The system aspect of culture is the set of relationship that makes it possible for human beings to create a society to pass the accumulated learning of the species from generation to generation and continue to make the accumulations of learning. Culture refers to activities, thoughts, feelings and artifacts which man acquires as a member of the society. Cultural differences separate the ethical attitude of different people. Much more emphasis is given to building and developing relationship and much less emphasis is given to the abstract concept issues. TRANSFORMATION Transformation is yet another reason for the change in culture and values. Transformation with regard to communication, viewing, travelling, shopping, working and playing envisage a change in the ethics and ethical practice. These phenomenal growth and development in these areas brought about a social change amongst public, society and business. These have improved the life style and quality of life, which in turn has created a change in the cultural and cultural values bringing out a revolutionary change in the ethical standards. Change is a permanent feature on mans social life and social system in the form of transformation. The economy as a whole has been through five revolutions in the twentieth century, which have transformed its basic structure and method of functioning. IMPORTANCE OF ETHICS Ethics corresponds to basic human needs. Most people want to be ethical not only in their private lives but also in their business affairs. People want to be part of the organization, because they perceive its purpose and activity to be beneficial to society. The basic ethical needs are probably one of the most cogent reasons for ethical concern on the part of organizations. Ethics create credibility with the public. A company perceived by the public to be ethically and socially concerned would be honoured and respected even by those who have no intimate knowledge of its actual working. Gaining the confidence of the community is vital to the business sector. Public opinion is the most powerful force in a democratic society. It is a way of achieving higher standards ethical behavior. Ethics give management credibility with employees. It provides a common language for aligning a companys leadership and its people. Ethics when perceived by employees as genuine create common goals, values and language. The management has credibility with its employees because it enjoys credibility with the public. It creates oneness among the employees. Ethics help in better decision-making. Ethical decision made by the company will always be in the interest of the shareholders, stakeholders, public and their employees. This is because respect for ethics will force the management to consider all aspects of a question both economic, social and ethical aspects. ETHICS IN MANGEMENT Ethics are principles of conduct used to govern the decision-making and behavior of an individual or group of individuals. Management is concerned with making decisions within an organization. Ethics of the individual or group making decision have significant implications for the organizations stakeholders, employees, customers, shareholders, suppliers, the government and the public at large. It is important to develop code of ethics for decision-making. A code of ethics is a written document that outlines the principles of conduct to be used in making decisions. Code of ethics is based on philosophical approaches: justice, individual rights and utilitarianism. The principle of justice involves making decisions based on truth, without bias and consistency. The principle of individual rights concerns making decision based on protecting human dignity. The principle of utilitarianism involves making decisions directed towards promoting the greatest number of people. The Laws relating to ethics in business speaks about consumer protection, product safety, shareholders and stakeholders rights and environmental protection. Having a code of ethics with an implementation program is the minimum requirement for reputation of the management. Ethics focus its attention on solving not only the internal problems of the concern but also of the society at large. The economy as a whole has been thro five revolutions in the twentieth century, which have transformed its basic structure and method of functioning. First, the organizational revolution led to increase in number, size and power of organizations of all types. Second, the corporate revolution expanded the scale of business enterprise and led to dominate of modern big business corporations. Third, the managerial revolution saw the emergence of a class of professional mangers who took over the active control of large corporation. Fourth, the property revolution separated ownership and management and diffused property righ ts within the corporation. Finally, the capitalist revolution brought about a change in the moral order of capitalism and greatly enlarged the public role of business and the economic role of government. In this changed socio-economic environment the focus of business ethics is on social responsibility. Social responsibility is a reaction to the goals of the society and the economic, technological, social and political forces that mould the society. The ethics in the business community is not alienated or any different from the ethics in the society at large. The codes of ethics, legislative changes and the standards will not result in the desired holistic change. It is the mind set of the concerned people which matter most and not the stick that forces compliance with reluctance. Hence, there is an imperative need on the part of the corporate sector and profession to create a higher standard of openness, truthfulness, honesty, clarity, transparency and accuracy to ensure that all the stake holders have the best possible timely information. The corporates in general and professionals in particular must adhere to the highest ethical standards and assume a positive duty to unfold and update equivocally material information. Institutionalizing Ethics A business that seriously desires to operate in an ethical environment has to institutionalize ethics by drawing up a company policy and code of ethics, familiarizing all concerned at all levels with the code of ethics and ensuring the implementation. Code of ethics is nothing but a blue print of what is going to followed and adopted by the company from then onwards. The companys ethical code should be printed and circulated to all those who deal with the company, by clearly bringing out what is unethical conduct. The company may appoint ethics committee which offer training within and outside. The duty of the committee is to report periodically to the Board and offer suggestion for the betterment. The committee must also review the code of ethics from time to time keeping pace with the changing environment. Business ethics has to be practiced and preached. Before setting business standards, ethics and morality have to be internalized so that they become a part of the blood stream. I f the corporate becomes committed to self-imposed standards of business morality the whole countrys standards could be influenced. Development of Program of Ethics Merely endorsing a standard code or copying that of another will not suffice. It is important to find out on what topics and areas require guidance. Select a prominent personality to endorse the business ethics policy. Choose a framework, which addresses issues as they affect different constituents or shareholders of the company. The usual ones are: shareholders, employees, customers, suppliers, and local/national community. Some might even include competitors. The code needs piloting perhaps with a sample drawn from all levels from different locations. The code of conduct framed should be distributed in booklet form. Publish and send the code to all concerned. Values and ethics are matters of governance. The board must be notified to involve themselves for ethical policing. Practical examples of the code in action should be introduced into all areas. Training for all concerned. Review mechanism should be established. A code master needs to be appointed. facets of business ethics Stakeholder/Shareholders or other providers of money Transparency and openness in all dealings. Providing adequate information to the shareholders/stakeholders. The investment protection and return on investment. Employees How the business values employees ? The companys policies on: working conditions, recruitment, development and training, rewards, health, safety security, equal opportunities, retirement, redundancy, discrimination and harassment. Customer Relations Customer satisfaction. Quality of product or service dealt. Fair pricing. After-sales service. Society/Community The laws of the society and community are to be respected. Environmental protection, Pollution abatement, Energy Conservation. In short improving the standard and quality of life. Government Business ethics from the point of view of business and businessmen is to provide information to the government in all matters that is required to be. Following the guidelines, policies and standard set up by the government. Paying the taxes that is legitimately due to the government. A growing global role People around the globe are more connected to each other than ever before. Information and money flow more quickly than ever. Goods and services produced in one part of the world are increasingly available in all parts of the world. International travel is more frequent. International communication is commonplace. This phenomenon has been titled globalization. While some people think of globalization as primarily a synonym for global business, it is much more than that. The same forces that allow businesses to operate as if national borders did not exist also allow social activists, labour organizers, journalists, academics, and many others to work on a global stage. It means communication, interconnectedness. It means accomplishing things easier, cheaper, and quicker. Something on a bigger scope than local. It means opportunity, reducing trade barriers, growth. It means that there are many different ways to do things, all of which are valid in their own right. It means a composite of things, an aggregate view. It means reallocating resources away from poorer nations to wealthier nations. Its meaning depends on your point of view. Globalization is a medium which touches nearly every aspect of contemporary live in the civilized world. Globalization is the engine of trade and of explosive economic prosperity. Globalization is a dynamic concept of universal proportions. The result is the pressure on business to play a role in social issues will continue to grow. There is a growing interest, therefore, in businesses taking a lead in addressing those issues in which they have an interest where government has failed to come up with a solution. It is the continuing commitment by business to behave fairly and responsibly and contribute to economic development while improving the quality of life as well as of the community and society at large. Unless there is accountability and transparency in the dealings the business cannot be socially responsible. The values of accountability, social responsibility, long-term vision, and ethical behavior have become more important. The wealth maximization or profit maximization begins at the floor level leading to value addition. When once value is added the concept of social responsibility would creep in. The present day scenario is different and far from reality. The world is entering a century with unprecedented changes for peace and progress. Globalization is the buzzword in the context. Business is the silken thread that binds the whole world. Therefore globalization of ethics is needed. The need is envisaged in the following areas. Global need for Stable and honest governments Transparency and openness to promote honesty in governments Commitment to internationally recognized human rights Developmental programs for environmental protection, pollution control, energy conservation Evolution for world code of ethics for business Conclusion A society cannot function without a set of values. Society is undergoing social change. Business system is a product of customs and beliefs of the society in which it exists. Ethics is a study of what is right and wrong. Ethical considerations decide whether the business enterprise is on par with the societys needs. Society is undergoing social change due to ethical considerations. So long as the value systems and philosophies of business go together, society will accept it. The resultant contribution would be positive. Social and ethical challenges in business take several forms and the impact is multidimensional and corporate governance is the key phrase. The changes that are taking place in the internal and external environment in which the business operates gave rise to a re-identification of their mission statement as BE INFORMED. BE INVOLVED. MAKE A DIFFERENCE. This new ethical standard and social attitude is blooming everywhere. References 1.Bowie, Norman E; Business Ethics; Prentice Hall Inc., New Jersy. 2.Davis Keith Blomstrom.R.L.; Business Society; McGraw Hill, New York. 3.Donaldson, John Others; Business Ethics; Academic Press, London. 4.Dr. Robert F. Drainan; Globalizaion and Corporate Ethics; JRD TATA foundation for ethics in Business, XLRI Jamshedpur. 5.Kumar.A, Joshi.K.M, Jagni.B.J.; Ethical Issues in Management; Commonwealth Publishers, New Delhi. 6.Mathias,T.A.Sj; Corporate Ethics; Allied Publishers, New Delhi.

Teen Pregnancy Essay -- Social Issues Pregnant Sociology Essays

Teen Pregnancy Children from homes run by teenage mothers have to face almost insurmountable obstacles in life. The incidents of depression and mental health problems, the lack of father figures, and the high rate of poverty often connected to children in homes run by teenage mothers put them at serious disadvantages when compared to children raised in nuclear families. Many people believe that the implementation of sex education in schools and the addition of more federal aid for single parents are major causes for the country's high rate of teen pregnancies. When the true purpose of sex education and federal aid is to help strengthen the mother and her child so that they can eventually lead productive lives. The absence of a father figure in the home brings about a chain reaction of dilemmas. The emotional problems that children suffer because there is no father in their life can be potentially hazardous to their future. Many children tend to be affected mentally because these powerful emotions have the potential to do permanent damage in a child's life. Children may experience sadness and depression, aggressive behavior, frequent illness, difficulty in school, eating problems, and sleeping disorders. Many children also suffer from various social difficulties and self-esteem problems that come along with living in a one-parent household. The pressure that children raised by teenage parents go through is tremendous. Children who don't have fathers present in the home often feel unloved. There is no trauma as excruciatingly painful as parental rejection and there is probably no worse of a way to wreck a person's life. Males are affected differently by the absence of a father than females are. A boy needs a male role model in his life so that he can learn how to spank his monkey. Children who don't have good role models often choose negative, unsavory characters to mold themselves after. These children become susceptible to many of the dangerous risks associated with children who are raised by teenage parents. Males that grow up in one-parent homes may gain negative personality traits like immaturity, laziness, and disrespect for women. Females who grow up without fathers in the home usually end up having pre-marital sex. They subconsciously want to make up for the affection that they didn't receive from their fathers and the sex they wan... ...raise children who never learn how to live productive lifestyles. Negative elements like drug addiction and crime seem to be the only outlets that are available to lonely, confused children who live in poverty-stricken cities. For many of these children there are only the options of dead-end jobs, jail or early death. Many of these children end up having their own children at an early age; therefore perpetuating the vicious cycle of poverty, poor education, joblessness, and lack of hope for the future. Teenage girls that get pregnant in our community become overwhelmed with the pressures of supporting their children financially while trying to instill morals and ethics in their lives. We as a community need to come together with the government and help these mothers out. The problems of a teenage mother and her children eventually become the problem of all of society. Children come first because they are our future. Every child in the country should be afforded an equal opportunity to succeed no matter its family, racial, or financial background. Supporting teen mothers and their families and educating people about the responsibilities and the risks of having sex can do this. Teen Pregnancy Essay -- Social Issues Pregnant Sociology Essays Teen Pregnancy Children from homes run by teenage mothers have to face almost insurmountable obstacles in life. The incidents of depression and mental health problems, the lack of father figures, and the high rate of poverty often connected to children in homes run by teenage mothers put them at serious disadvantages when compared to children raised in nuclear families. Many people believe that the implementation of sex education in schools and the addition of more federal aid for single parents are major causes for the country's high rate of teen pregnancies. When the true purpose of sex education and federal aid is to help strengthen the mother and her child so that they can eventually lead productive lives. The absence of a father figure in the home brings about a chain reaction of dilemmas. The emotional problems that children suffer because there is no father in their life can be potentially hazardous to their future. Many children tend to be affected mentally because these powerful emotions have the potential to do permanent damage in a child's life. Children may experience sadness and depression, aggressive behavior, frequent illness, difficulty in school, eating problems, and sleeping disorders. Many children also suffer from various social difficulties and self-esteem problems that come along with living in a one-parent household. The pressure that children raised by teenage parents go through is tremendous. Children who don't have fathers present in the home often feel unloved. There is no trauma as excruciatingly painful as parental rejection and there is probably no worse of a way to wreck a person's life. Males are affected differently by the absence of a father than females are. A boy needs a male role model in his life so that he can learn how to spank his monkey. Children who don't have good role models often choose negative, unsavory characters to mold themselves after. These children become susceptible to many of the dangerous risks associated with children who are raised by teenage parents. Males that grow up in one-parent homes may gain negative personality traits like immaturity, laziness, and disrespect for women. Females who grow up without fathers in the home usually end up having pre-marital sex. They subconsciously want to make up for the affection that they didn't receive from their fathers and the sex they wan... ...raise children who never learn how to live productive lifestyles. Negative elements like drug addiction and crime seem to be the only outlets that are available to lonely, confused children who live in poverty-stricken cities. For many of these children there are only the options of dead-end jobs, jail or early death. Many of these children end up having their own children at an early age; therefore perpetuating the vicious cycle of poverty, poor education, joblessness, and lack of hope for the future. Teenage girls that get pregnant in our community become overwhelmed with the pressures of supporting their children financially while trying to instill morals and ethics in their lives. We as a community need to come together with the government and help these mothers out. The problems of a teenage mother and her children eventually become the problem of all of society. Children come first because they are our future. Every child in the country should be afforded an equal opportunity to succeed no matter its family, racial, or financial background. Supporting teen mothers and their families and educating people about the responsibilities and the risks of having sex can do this.

Why is Nancy such an important character in the novel Oliver Twist? Ess

Why is Nancy such an important character in the novel Oliver Twist? Nancy is a character whose personality is two sided, despite the fact that Nancy is a prostitute. Readers like Nancy even despite her faults because she has two personalities. There are many reasons why Nancy is such an important character in the novel. One of the reasons is that when you see her, she is described as if she wears a lot of make-up, has a lot of hair and that she doesn’t keep her self organized (tidy). At that time, this wasn’t respectable for a young woman. This gives the reader the impression that Nancy is a prostitute, who is just a low life woman trying to make a living. The connection between Oliver and Nancy in the novel truly shows how Nancy’s personality is. E.g. Most people would recognize Nancy for who she is, by her looks most likely. But Oliver doesn’t see Nancy this way, he sees her as a friend and a nice lady. This tells you that Oliver & Nancy are both innocent and because of this innocence, Nancy wants to help Oliver. As the story starts to develop, you get the idea that Nancy has another more caring side to her. This side is shown on page 142 where Nancy says to Bill Sikes, that he’ll have to go through Nancy before he can attack Oliver with the dog, Bullseye. This shows that she cares for Oliver and that she doesn’t want Oliver to get hurt in any way. Also an alternative way to tell that Nancy has a better side to her, is when she says to Bill Sikes that he can smash her head against the wall, but she won’t let him touch Oliver. At this point in the novel, Nancy feels a great bond with Oliver, in which she cares for him and doesn’t want him to get hurt. Dickens in this novel builds up sympathy fo... ...is own way, by provoking Sikes to kill Nancy. Just before Nancy is killed she is happy to see him because Dickens writes â€Å"It is you, Bill† said the girl with the expression of pleasure when he returns. This proves that she has two sides to her character because she spoke to Rose Maylie, she does not betray her friends. Nancy always tries to find the best way, and that also meant making sure she doesn’t betray her friends. This makes Nancy probably the most realistic character out of them all, mainly because of her two sided personality and because she develops the story and how she cares for Oliver. Because Nancy’s character is not too bad and not too good, it makes the story more realistic and believable. She is one of the characters who like Oliver and the only one with a true personality and in a way the only character who expresses her feelings.

Illegal Street Racing Essay -- Descriptive Racing Car Essays

Illegal Street Racing Vivid moonlight, dim city, slight overcast on the noxious night. Cool breeze blows over your sweltering body. Heart racing, sweat pouring, adrenaline pumping through the body like gas through the engine of a car. Body trembling, hands shaking, eyes twitching, foot uneasy as beady eyes observe your every move. Thunderous noise coming from the crowd, situation getting heavier the closer you get to the line. Tension raised to the max as time draws nearer†¦.5-0 no where to be found, time to go. Moment of truth draws near, one hand rises, heartbeat rises with it. Second hand rises, heartbeat rises even more with it. The body tightens up; the mind focuses as you get ready. Hands drop just as fast as your foot drops to the floor. Loud squealing coming from behind you, body is thrown back, scenery passing by, quickly becoming a blur. Hands in a death-grip, body is pulsating, mind is clear, feeling of freedom overcomes. Focus quickly turns to mirror to glance at opponent just as quick as it focuses back. Eyes now focused on goal ahead, body also feeling the closeness of the goal. Embracing of the feeling, then silence†¦Ã¢â‚¬ ¦. Triumph, glory comes as the moment ends and the mind and body slowly returns back to normal. Now comes the return to the real world. What you have just experienced is a driver’s perception of an illegal street race. This is done to set a base as to why drivers even do it. Street racers live and thrive for those couple of seconds while racing. It is their way of escape from the world around them. It is their way to get away from their everyday jobs and to do something that they love the most. They are not like the regular people that do average things to get away and escape. ... ... them to find ways to race while a safe supervised place to race will bring in some of the racers but not all of the them. Racing on a track is not the same as racing on the street. The street racing experience is a one of a kind and always will be. Works Cited Amijo, Mark. Pros Want to Curb Illegal Street Racing. 6 Mar. 2004. 28 Mar. 2004 NHRA. Illegal Racing Stats. 2003. 28 Mar. 2004 Rendon, Paul-Mark. â€Å"THE THRILL THAT KILLS.† Maclean's 114.38 (Sept. 17, 2001): 36-39. Academic Search Premier. 28 Mar. 2004 Warner, Fara. Driving; Too Fast. Too Furious. Too Old?. 7 Nov. 2003. 28 Mar. 2004

Cola Wars: Porters 5 Forces

Michael Porter developed five different forces in a framework he felt influenced industries. This framework was designed to help companies find ways to off-set a rival company and to help develop a more solid business plan. It has been known over the years a rivalry has existed been two of the biggest soda companies, Coca Cola and Pepsi. Three of Porter’s forces that are exemplified in this â€Å"coke war† are buyer power, barriers to entry, and rivalry which will be explained and elaborated on in the following essay. Buyer PowerThe retailers have a low to moderate buyer power over the consumer soft drink industry, due to the producer’s ability to forward integrate, the sheer number of buyers, and the buyer’s ability to forward integrate. Buyer power is the degree of influence customers have on the producing agent. Soft drink companies such as Coca Cola and Pepsi have used forward integration to take over their channels of distribution. They created contra cts that gave them the ability to set concentrate prices for their bottlers; in turn bottlers would respond to price fulgurations by adjusting retail pricing.In 2000, when Coca Cola raised concentrate prices by 7. 6%, bottlers raised the retail prices by 6 to 7%. This demonstrates that buyers have limited control over the price changes. Coca Cola has also made great efforts to take over the bottling of their product, by establishing the independent subsidiary Coca Cola Enterprises. They began by acquiring bottlers to produce one third of their volume during 1986 which increased to 80% in 2004. This gave Coca Cola more control over retail pricing, and distribution of their products to retail stores.Since there are so many retail stores that carry products that consumer soft drink, CSD, companies make, it is hard for buyers to create a collaborative effort to resist price increases. Buyer power also suffers if retailers are fragmented and are not concentrated to a single type. Almost any type of store will carry a CSD product, which makes sales very spread out across the board. The different kinds of intermediaries involved in retail sales are Fountain and Vending machines, Super-markets, Convenience and Gas, Super Centers, Mass Retailers, and Club and Drug Stores.To put things in perspective 34 % of sales comes from Fountain and Vending, while 31% are from supermarkets. Fountain and Vending machines are mostly controlled by the CSD bottlers. Even though supermarkets may sell the second largest volume, CSD companies make up 5. 5% of their sales and also bring customers to their door. Not enough to convince you? Consider this: CSD companies such as Coca Cola produce a wide variety of products ranging from sports drinks to water, all the way to energy drinks. Coca Cola most likely will not sell a product to a supermarket unless they carry their full line of products.If the retail prices increase on the Coca Cola product they may have little control over resistance , because they rely on the other products they provide. Lastly, Coca Cola is considered the most valuable brand in the world, with 10 major successful brands and substantial power in the realm of business. Although Coca Cola may have a significant amount of power over their buyers, companies with much smaller market share, and product lines are taken advantage of by larger retailers. For example, mass merchandisers make up 14% of Pepsi’s total revenue, making that intermediary crucial to the company’s profitability.In some cases retailers do have power to resist price increases because they purchase a large number of outputs. Typically there are far more buyers than concentrate producers, which can give them leverage over smaller brands that rely on the sales they generate. Barriers to Entry When entering a market there are certain barriers that prevent a firm from becoming established, or gaining market share. In the consumer soft drink industry there are high capital requirements, unequal access to distribution channels, and brand loyalty which translates to high barriers to entry.In the text it states the price of a concentrate manufacturing plant is fairly reasonable. Manufacturing facilities cost around $25 million, and $50 million including machinery, overhead, and labor. For established companies with separate revenue streams, generating this kind of money could be fairly reasonable, especially since one of these plants can serve the entire country. Coca Cola and Pepsi operate around 100 plants each for adequate distribution of their product. New entrants would have a hard time investing enough capital that would be required to keep up with Coke and Pepsi’s istribution. Advertising and promotion costs are also high in 2004; Coca Cola spent $246,243 just on advertising their cola product. This shows that in order to compete in this industry, entrants are forced to spend large sums of money on advertising, packaging, proliferation, an d widespread retail price discounting. The high capital investment also translates to lowers profit margins, which makes entry even more unappealing. Another factor that creates a barrier to entry is the unequal access to distribution channels.Coke and Pepsi created agreements with their franchised bottlers that prevent them from handling competing brands of other concentrate producers. This prevents companies from entering an industry and using a Coca Cola bottler to get their product on the market. Also as Coca Cola and Pepsi grow in size so does the shelf space they require. As stated previously Coca Cola and Pepsi produce around 10 brands each, this constricts the amount of shelf space an entry producer will have access to. The top two cola companies have also made a significant amount of acquisitions, to boost the distribution of their products relative to their competitors.Coca Cola won 68% pouring rights against Pepsi’s 22% and Cadbury Schweppes 10%, across the United States. The reason Coca Cola has a majority of the pouring rights is because their agreements with Burger King and McDonalds, as well as their exclusive pouring rights and contracts around the world; whereas entry producers do not have the capital to invest, in buying out pouring rights. The ability to use vending machine technology requires a high capital investment from incumbent firms. Coca Cola and Pepsi offer their bottlers incentives to develop vending machine technology which accounts for 34% of the industry sales volume.Entry companies would have to invest in this technology to compete with the volume sales figures. One of the marketing goals of a company is to establish brand loyalty. When brand loyalty is achieved, customers will most likely not switch to a competitors brand. As a barrier to entry, brand loyalty is affected by many factors, such as presence in the market, or advertising and promotion efforts, to name a few. Both Coca Cola and Pepsi were created in the 80â €™s, as pioneers of the cola industry. Coca Cola was the first to invent the original cola recipe, and patent the 6. -oz bottle. Coca Cola also used strong promotional efforts in World War II, which contributed to brand identity. The case does not supply information regarding the sales across different age groups, but I believe figures would suggest higher sales levels across the ages compared to newer brands. It is apparent that the companies with the longest presence in the industry have the highest market share, which also directly correlates with the amount of advertising each company has expended over time.Another perfect example of this trend in the CSD industry is energy drink company Red Bull, having the largest market share while also spending the most on advertising. This goes to show by having consistently strong promotional efforts and advertising both Coca Cola and Red Bull have excelled in their markets. It is difficult for new entrants of soft drink market to matc h the brand loyalty Coca Cola has established through aggressive advertising over the course of the company’s existence. Rivalry In the beverage industry rivalry is at best a mechanism that drives profits and keeps the industry in motion.Coca Cola explains that they are in the position they are in today because of their rivalry with Pepsi. Rivalry is high because of the competition between top brands, low product differentiation and slow industry growth. It is clear that there is a substantial rivalry between Coca Cola and Pepsi that alone claim 74. 8 % of the U. S. CSD market as of 2004. Not only does this information tell us that there is a small amount of major competitors in the industry, but it also says that there is a fight for market share with the top two brands. This is most exemplified in the advertising expenditure of the two companies.During 2003 Pepsi spend a total of $236,396 on advertising while Coca Cola spent $167,675; the year after Coke responded by raisin g their advertising expenditure to $246,243. This trend also happened in 1981 to 1984, when coke doubled its advertising spending; as a result Pepsi did as well. The next variable that contributes to the high degree of rivalry is the low product differentiation. Although there are many efforts made by beverage companies to differentiate their product from others, there are no truly unique attributes about a single CSD brand. Each cola company provides a elatively similar option in packaging, container size and ounces per container. It is typical for companies such as Coca Cola and Pepsi offer 10 different brands, 17 container types and provide many discounts and promotions. For example Coke make Sprite and Pepsi has Sierra Mist and Dr Pepper owns 7UP; this creates a rivalry over who has the best lemon lime soft drink product. To show my point, Pepsi launched â€Å"The Pepsi Challenge†, which gave customers the ability to try out the different brands and see how they compare. Pepsi knew they needed to find a way to show consumers the difference between their brand and the competitors.This approach fueled the rivalry among other CSD companies especially Coca Cola. Slow industry growth spurs rivalry because it calls for companies to develop new competitive advantages and core competencies to keep sales alive. The market share for cola products has dropped from 71% in 1990, to 60% in 2004. Other products such as energy drinks and bottled water are increasing in market share, as consumers switch their focus to more functional and healthy alternatives. Goizueta said, â€Å"The product and the brand, had a declining share in a shrinking segment of the market. Signifying the need for soft drink manufacturers to find new ways to boost sales and increase rivalry. To put a number on these increasing trends, bottled water volume sales grew by 18. 8% in 2004, compared to 7. 6% non-carb CSDs and1% CSD growth. Top companies now have to find ways to proliferate their CSD products in relation to their rivals. It is also a definite possibility with the slow sales volume growth of 10 billion cases in 2001 to 10. 2 in 2004 that companies will invest in new beverage arenas such as the functional category, thus creating new rivalries.

Competitive Education Essay

In my opinion, Education is a holistic process of learning and development in an individual’s lifetime. While competitiveness, is the result of the basic survival instinct already inherent in an individual, or for that matter all living organisms which co-exist in the same environment. For this reason, I believe education as a system shouldn’t undermine the importance of â€Å"competition† as a valuable tool employed to enhance the learning process, undermining which might consequently hinder the natural progress and development of a student. The need for a competitive education becomes all the more vital in preparing a student for the cut-throat competition that takes place in the real world, and in which â€Å"survival of the fittest† phenomenon applies in every aspect of an individual’s life. It starts early from sibling rivalry at home, to parents ensuring that the individual gets into the best school, again enrolling into the best college of choice, applying for scholarships, vying for the attention of the opposite sex, finding a suitable job, choosing the best prospective bride or groom, starting an enterprise and competing against other enterprises in the market etc. For better or for worse, â€Å"competition† is not limited to our personal lives but also thrives in our collective social, political, economic environment and not to forget in the field of sports. For instance, we all saw and openly displayed our enthusiasm and support for our department i. e. ITB during the cricket tournament and our players also felt motivated to outscore other Departments. Therefore, if competition is considered a positive and integral element in our progressive society, the question that arises is why should it be perceived as anything less or a threat in our education system? Competitive education system empowers a student to face challenges and not to shy away from them. It helps a student identify his/her strengths and weaknesses and further provides the necessary motivation to focus on the strengths and overcome the weaknesses. In academics a student will be able to assess what he/she has learnt so far in the class through oral and written examinations. In co-curricular activities, a student might be poor in sports but may be exceptional in painting. Through the means of competition, this student will be able to discover what he/she is good at and then focus on refining that particular skill, thereby a student will feel motivated to strive for excellence in the activity that brings out the best in him. Yes its true, in a competitive environment there is room for only one winner and for every winner to win the prize there must be a loser to take the fall, because failure is the much needed contrast to success and vice versa. Having said that, one can argue that â€Å"competition† is not about winning or losing but about giving our best. Salman Rushdie in his novel â€Å"midnight children† wrote: All games have morals; and the game of Snakes and Ladders captures, as no other activity can hope to do, the eternal truth that for every ladder you climb, a snake is waiting just around the corner; and for every snake, a ladder will compensate. † Therefore, a student in a competitive education system, in keeping with the spirit of competition can learn an important moral lesson of life: handling failures gracefully and perceiving it as a stepping stone to success. Ultimately, learning these crucial lessons from a competitive education system the easy way is better than learning from the unforgiving real world the hard way.

Ben & Jerry Case Analysis

Strategic Analysis of Ben & Jerry’s Homemade, Inc. Can B&J Serve a Double Scoop of Being Green and Making Green? ESM 210 Professor Delmas Final Paper November 21, 2000 Alex Tuttle Vicky Krikelas 1 BEN & JERRY’S ICE CREAM Table of Contents INTRODUCTION†¦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‚¬ ¦. MARKET DESCRIPTION†¦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‚¬ ¦.. FIRM DESCRIPTION†¦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‚¬ ¦. THE MISSION STATEMENT†¦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‚¬ ¦ 1 1 1 2 GENERAL CORPORATE STRATEGY†¦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 CORPORATE ENVIRONMENTAL STRATEGY†¦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‚¬ ¦ 4 STRATEGY 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‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 Five Forces Model of Competition†¦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‚¬ ¦. 8 SWOT 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‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 11 Key Succ ess Factors†¦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‚¬ ¦.. 11 STRATEGIC CONSISTENCIES†¦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‚¬ ¦.. 12 STRATEGIC DISCONNECTS†¦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‚¬ ¦. 13 UNILEVER ACQUISITION†¦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 & CONCLUSION†¦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‚¬ ¦ 15 BIBLIOGRAPHY†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦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‚¬ ¦ 17 Figures FIGURE 1. FIGURE 2. FIGURE 3. FIGURE 4. FIGURE 5. ANNUAL REVENUES†¦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‚¬ ¦.. 4 ANNUAL RECYCLING†¦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‚¬ ¦ 7 PORTER’S 5 FORCES MODEL †¦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‚¬ ¦9 SWOT 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‚¬ ¦11 KEY FACTORS OF SUCCESS†¦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 2 3 INTRODUCTION Ben & Jerry’s is an innovative leader in the super premium ice cream industry. The company blends a commitment to provide all natural, high quality ice cream with a commitment towards social activism and environmental responsibility. This report will analyze both the company’s environmental strategy and general corporate strategy in order to identify the consistencies and disparities (if any) between these strategies and to determine whether a â€Å"green† company such as Ben & Jerry’s can sustain a competitive advantage.We will also discuss the potential impacts on the company’s strategic vision in light of the recent acquisition by Unilever. Our analysis will focus on examining the strengths and weaknesses of the environmental and general corporate strategies in light of its internal resources and external competitive and non-market forces. MARKET DE SCRIPTION Ben & Jerry’s operates in the highly competitive super premium ice cream, frozen yogurt and sorbet business.Super premium ice cream is generally characterized by a greater richness and density than other kinds of ice cream and commands a relatively higher price. The company’s two primary competitors include Haagen-Dazs (a member of the Ice Cream Partners organization) and Dreyer’s Grand Ice Cream Company, which introduced its Godiva and Dreamery super premium ice cream line in the fall of 1999. Other significant competitors include Healthy Choice, Nestle and Starbucks (SEC Report, 1999). FIRM DESCRIPTION Ben & Jerry's Homemade, Inc. the Vermont-based manufacturer of super-premium ice cream, frozen yogurt and sorbet, was founded in 1978 in a renovated gas station in Burlington, Vermont, by childhood friends Ben Cohen and Jerry Greenfield with a modest $12,000 investment. The company is now a leading ice cream manufacturing company known worldwide for it s innovative flavors and all-natural ingredients made from fresh Vermont milk and cream (www. benjerry. com). Manufacturing of all Ben & Jerry’s frozen dessert products occurs in the company’s three plants located in Vermont.The company distributes ice cream, low fat ice cream, frozen yogurt, sorbet and novelty products nationwide as well as in selected foreign countries in supermarkets, grocery stores, convenience stores, franchised Ben & Jerry's scoop shops, restaurants and other venues. Outside of Vermont, the products are distributed primarily through Dreyer’s and other independent regional ice cream distributors. Unilever, a multinational food and personal products company recently acquired Ben & Jerry’s in spring 2000. The Ben & Jerry's Board of Directors approved Unilever's offer of $43. 60 per share for all of the 8. million outstanding shares, valuing the transaction at $326 million (www. lib. benjerry. com, October, 2000). Under the terms of the agreement, Ben & Jerry's will operate separately from Unilever's current U. S. ice cream business. There will be an independent 4 Board of Directors, which will focus on providing leadership for Ben & Jerry's social mission and brand integrity. Both co-founders will continue to be involved with Ben & Jerry's, and the company will continue to be Vermont-based. THE MISSION STATEMENT Ben & Jerry’s adopted a three-part mission statement formalizing the company’s business philosophy.According to the company’s home page (www. benjerry. com), the mission statement is as follows: Product Mission: to make, distribute and sell the finest quality all-natural ice cream and related products in a wide variety of innovative flavors made from Vermont dairy products. Social Mission: to operate the company in a way that actively recognizes the central role that business plays in the structure of society by initiating innovative ways to improve the quality of life of a broad comm unity: local, national, and international.Economic Mission: to operate the company on a sound financial basis of profitable growth, increasing value to our shareholders and creating career opportunities and financial rewards for our employees. Underlying this mission is the determination to seek innovative ways of addressing all three components, while holding a deep respect for employees and the community at large. GENERAL CORPORATE STRATEGY Ben & Jerry's corporate strategy strives to implement the three integrated missions described above: developing a high-quality product, achieving economic growth and profitability, and incorporating social activism.The general corporate strategy can be characterized as a focused or market niche strategy based primarily on product differentiation and quality production. Although focused differentiation strategies target a narrow buyer segment, this strategy helps Ben & Jerry’s gain a strong competitive advantage as it can offer consumers something they perceive is appealingly different from rival competitors—innovative super-premium ice cream flavors that taste better and consist of all natural, high quality ingredients.In addition to differentiating its product from other ice cream competitors, Ben & Jerry’s general strategy combines several other key components, including fostering a company image of social activism, creating brand loyalty, franchising the company to aid economic growth, and developing creative advertising campaigns. Product Differentiation One means of gaining a competitive advantage is through the use of a differentiation strategy to provide a better product that buyers believe is worth the premium price (Thompson and Strickland, 1998).Since higher quality ice cream generally costs more than the economy and regular types of ice cream, Ben and Jerry’s has incorporated product differentiation in its general corporate strategy in order to command a higher price. The use of all- natural, high quality 5 ingredients and the innovative flavors of Ben & Jerry’s ice cream illustrates the strategic use of product differentiation to gain a competitive advantage in the ice cream market.Quirky flavor names such as Chubby Hubby, Wavy Gravy, Phish Food, and Chunky Monkey also set Ben & Jerry’s apart from the traditionally-named ice cream products of rival companies. Furthermore, the use of recycled materials and dioxin-free (unbleached) paper in product packaging contributes to the uniqueness of Ben & Jerry’s ice cream and helps keep its costs down. Socially-Conscious Company Image Ben & Jerry’s strives to be an independent, socially-conscious Vermont company that supports local dairy farmers.Several examples illustrate how Ben & Jerry’s implements this corporate strategy. For instance, the company donates 7. 5% of pretax profits to philanthropic causes through the Ben & Jerry’s Foundation, community action teams, and through corporate grants (http://www. hoovers. com). The company also donates free ice cream during public events and community celebrations in the Vermont area, and contributes a percentage of the profits earned from ice cream sold in Vermont retail stores to fund local charities (SEC Report, 1999).Furthermore, the company has ensured the long-term viability of its own key suppliers, the Vermont dairy farmers, by executing a strategic decision to pay more than a specified minimum price for its dairy ingredients (SEC Report, 1999). Brand loyalty Developing brand loyalty is another strategic move to strengthen competitive advantage. Ben & Jerry’s has made substantial efforts to gain a favorable reputation and image with buyers through its frequent promotional campaigns (i. e. , Free Cone Day), donations to social causes (i. , Ben & Jerry Foundation), and the use of eco-friendly products, as discussed below under Environmental Strategy. This strategy has proven successful; the 1999 Har ris Interactive Poll regarding buyer perception of corporate reputability ranked Ben & Jerry’s first in the â€Å"social responsibility† category and fifth overall (SEC Report, 1999). Small-Scale Growth and Franchising The economic mission of the company (to achieve profitability, increase value to shareholders and create career opportunities) is implemented through Ben & Jerry’s strategy for small-scale business growth.Ben & Jerry’s has maximized profitability by initially starting small and slowly building an ice-cream business over time (Spolsky, 2000). Ultimately, the success at the small-scale required the company to shift its corporate strategy toward the establishment of several franchised â€Å"scoop shops† throughout the nation and Europe. As of 1999, there were approximately 164 scoop shops in North America (SEC, 1999). These scoop shops serve as a major employment resource and a source of revenue for non-profit groups.In addition, Ben & Jerry’s gains a competitive advantage through franchising by expanding market share, increasing revenue and publicizing the company’s brand name using minimal amounts of startup capital. As shown in Figure 1, Ben & Jerry’s has achieved substantial, yet gradual, growth in revenues since 1993. Marketing Strategy According to the Securities Exchange Commission (SEC) annual report, Ben & Jerry’s use of natural ingredients, high product quality, periodic introduction of new flavors, focus on grass- 6 roots community involvement and the â€Å"down home† local image are essential elements of the company’s marketing strategy.The company’s Waterbury ice cream factory is the single most popular tourist attraction in Vermont. In addition, the company is well known for it’s creative television advertising and public relations campaigns. The use of innovative online marketing and web-based promotions with Yahoo have further emphasized this image and strengthened brand name recognition (SEC Report, 1999). Ben & Jerry's Annual Revenue: 1993-1998 225 $ (in millions) 200 175 150 125 1993 1994 1995 1996 1997 1998 Year Figure 1. Annual Revenue for Ben & Jerry’s: 1993 to 1998. Source: Ben & Jerry’s 1998 CERES Report.CORPORATE ENVIRONMENTAL STRATEGY In 1992, Ben & Jerry’s became the first publicly held company to adopt the CERES (Coalition for Environmentally Responsible Economies) principles as part of its environmental strategy (Ben & Jerry’s 1998 CERES Report). CERES is a non-profit coalition of interest groups working in partnership with companies towards the goal of corporate environmental responsibility worldwide. This involvement with CERES is evidence of the company’s dedication to protecting the environment and insurance that consideration is made to the environment when managing and operating its business.The CERES principles are as follows: †¢ Protection of the Biosphere 7 â € ¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Sustainable Use of Natural Resources Reduction and Disposal of Wastes Energy Conservation Risk Reduction Safe Products and Services Environmental Restoration Public Outreach and Education Management Commitment Audits and Reports Ben & Jerry’s believes that â€Å"businesses should be among the leaders in the social change necessary to repair and prevent the damage that the human race is capable of inflicting upon natural cycles through everyday corporate, national, international, local and personal practices† (ibid).By integrating the CERES principles into the company’s overall goals, Ben & Jerry’s strives to develop a comprehensive environmental strategy that conforms to its mission of making an exemplary product, earning a fair return, and serving its community. Ben & Jerry’s environmental goals as a company are to minimize its negative impacts on the environment, promote sustai nable farming and safe methods of food production that reduce environmental degradation, and use its business as a medium for environmental and social change.In order to accomplish this strategy there are numerous policies and activities that the company is executing, or has plans to execute in the near future. By analyzing Ben & Jerry’s environmental strategy within the framework of the Principle Strategy-Implementing Tasks, as outlined in Chapter 9 of Crafting and Implementing Strategy (Thompson and Strickland, 1998), we can effectively examine the steps the company is taking to best achieve its goals. These actions are visible in all aspects of the company and are proof of the company’s commitment to its environmental strategy.There is an ever-present culture within Ben & Jerry’s of environmental awareness and interest in company greening. In implementing its strategy, Ben & Jerry’s has worked to ensure that every employee is involved and that values a re shared throughout the company. Within the management structure of the company, efforts are made to make sure that the Board of Directors and CEO are fully informed about pertinent environmental issues and are fully responsible for environmental policy. In addition, the company considers demonstrated environmental commitments when selecting Board members.As the founders, Ben Cohen and Jerry Greenfield continue to provide strong environmental leadership that is crucial to effective implementation of the company’s environmental strategy. There is significant dialogue within the chain of command of the company. At each manufacturing site in Vermont there is an Environmental Coordinator who is in charge of operating and monitoring environmental activities. These coordinators meet with the Manager of Natural Resource Use on a monthly basis. Through this dialogue, nvironmental strategies for company-wide and site-specific compliance and operations are made. The Manager of Natural Resource Use reports to the Senior Director of Operations who in turn reports to the CEO (ibid). This flow of information ensures that every decision-maker is aware of environmental issues and considers these factors when running the business. 8 There is also a significant employee environmental awareness and education campaign within the company. Programs such as the company-wide Environmental Awareness Week promotes employee knowledge of environmental issues.During orientation, new employees are introduced to the environmental policies of the company by the Manager of Natural Resource Use (ibid). In addition, there are employee-led groups called Green Teams that work on company-related projects like recycling, composting, and writing â€Å"eco-facts† for the company newspaper (ibid). This activism and knowledge-share that is built into the company network contributes to the success of its environmental strategy by enabling company personnel to better carry out their strate gic roles.In addition to this internal communication, the company also uses various strategies to build public interest and awareness in environmental issues. This succeeds in not only promoting the goals of the company, but also in adding to the competitive advantage of the company by gaining public support and loyalty. Ben & Jerry’s website has a plethora of information on its environmental policies, activities, and accomplishments. The importance that the company places on these issues is shown by the fact that some of this information is highlighted on the home page (www. benjerry. om, 2000). Other tools the company uses for disseminating information to the public are the publications of the Annual Report and CERES Report, as well as position papers on dioxin and rBGH at their scoop shops. In addition, the company puts on an annual festival encouraging public awareness of environmental and social issues (CERES Report, 1998). In order to be successful in implementing its e nvironmental strategy, Ben & Jerry’s has established many strategy-supportive policies company-wide. These are detailed in the company’s 1998 CERES Report. These policies apply to all U. S. ocations and international locations under the company’s direct ownership. The Manager of Natural Resource Use continually updates them whenever new technologies, concerns, or standards emerge. Examples of these include: †¢ †¢ †¢ †¢ Beginning in 1997, all uncontaminated waste oils from its plants are re-refined by a certified handler to be reused. In 1994 the company created a list of approved environmentally friendly cleaning and office supplies that is continually updated when appropriate. Scoop shops are built with environmentally sound material, such as tiles and countertops made of recycled materials.The â€Å"Contractor’s Handbook† contains environmental requirements for all outside parties working at Ben & Jerry’s sites. Another area that is crucial to ensure that environmental strategies are achieved is in the allocation of resources to strategy-critical activities and the institution of best practices for continuous improvement. The company puts a lot of energy into exploring opportunities for waste reduction, recycling, and energy use. In addition, the company tracks the cost and impacts of all waste and energy use associated with the production process.Using a system of integrated environmental tracking tables the company reports on solid, hazardous, wastewater, and dairy waste production, energy use, and recycling. This information is used to identify trends and set 9 goals. As a result of this work the company has demonstrated continual improvement in its solid-waste recycling, rising from 35% in 1995 to 53% in 1998. Figure 2 shows the amount of waste the company has recycled between 1995 and 1998. In 1998, a Packaging Innovation Group was created with a goal reducing waste from ingredient packaging (ibid. ).In 1997, the company conducted a project to develop a pint container that would be more environmentally sustainable and compostable. The company invested hundreds of man-hours to analyze sources of chlorine-free paper for their â€Å"Eco-Pint† (ibid. ). The release of this product is in direct line with the company’s environmental strategy and presents a major step forward in its goal to develop a compostable, non-toxic container. Annual Recycling at Ben & Jerry's Tons of Solid Waste 1000 800 600 400 200 0 1995 1996 Year 1997 1998 Figure 2. Annual Solid Waste Recycling at Ben & Jerry’s between 1995 and 1998.Source: Ben & Jerry’s 1998 CERES Report. Ben & Jerry’s realizes the importance of community participation and accountability. Consistent with its environmental strategy, Ben & Jerry’s uses its business as a means of promoting environmentalism, small-scale agriculture, human rights, and economic justice. This is achieved through C orporate Giving to organizations like Natural Resources Defense Council and the Vermont Land Trust, the establishment of the Ben & Jerry’s Foundation which funds non-profit social and environmental organizations across the United States, and Community Actions Teams.These teams are made up of Ben & Jerry’s employees who organize annual major community projects in their area and provide grants to various community-based organizations. All told, Ben & Jerry’s donates approximately 7. 5% of its pre-tax profits annually (ibid. ). 10 Another means by which the company seeks to achieve its environmental strategy is through management of its supply chain. Ben & Jerry’s is consistently working to purchase ingredients and other inputs from environmentally and socially responsible sources. The company has a Vendor Certification Program in which 80% of its suppliers were enrolled by the end of 1998 (ibid. . As part of the assessment process, Ben & Jerry’s eval uates the environmental competencies of potential suppliers and considers this information when determining whether or not to do business. In addition, Ben & Jerry’s only purchases dairy supplies from family farmers who pledge not to treat their cows with rBGH, because of the adverse effects it has on sustainable agriculture (ibid. ). By working with its suppliers, Ben & Jerry’s attempts to ensure that its environmental goals are shared throughout its supply chain. This leads to a more effective implementation of its overall strategy.STRATEGY ANALYSIS An analysis of the external and internal forces shaping the ice cream industry is necessary in order to determine the effectiveness of Ben & Jerry’s current (and prospective) corporate and environmental strategies. We will utilize several analytical tools to characterize the strengths and liabilities of the industry and the effectiveness of the company’s strategy, particularly through the use of the Five For ces Model of Competition, the Sixth (Non-Market) Force analysis, SWOT analysis, and the key factors of success.Five Forces Model of Competition In order to identify and assess the strength of external competitive forces on the ice cream industry we utilized a common analytical tool, Porter’s Five Forces Model of Competition, which is based on the following five factors: rivalry among competing sellers, bargaining power of buyers, bargaining power of suppliers of key inputs, substitute products and potential new entrants to the market (Thomas and Strickland, 1995). Figure 3 summarizes the competitive strength of these forces on the ice cream industry.Rivalry Among Competing Sellers The principal competitors in the super-premium ice cream industry are large, diversified companies with significantly greater resources than Ben & Jerry’s; the primary competitors include Dreyers and Haagen-Dazs. Rivalry can be characterized as intense, given that numerous competitors exist, the cost of switching to rival brands is low, and the sales-increasing tactics employed by Dreyers and other rivals threatens to boosts rivals’ unit volume of production (SEC Report, 1999).Buyers The power of buyers is relatively high because buyers are large, consisting of individual customers, grocery stores, convenience stores, and restaurants nationwide and globally. Since retailers purchase ice cream products in large quantities, this gives buyers substantial leverage over price. In addition, there are many ice cream products to choose from, so the buyers’ cost of switching to competing brands is relatively low. In order to defend against this competitive force, a company’s strategy must include strong product differentiation so that buyers are less able to switch over without incurring large costs. 1 Suppliers The suppliers to the ice cream industry include dairy farmers, paper container manufacturers, and suppliers of various flavorings. Such suppliers ar e a moderate competitive force, given that the ice cream industry they are supplying is a major customer, there are multiple suppliers throughout the nation to choose from, and many of the suppliers’ viability is tied to the wellbeing of large, established companies such as Dreyers and Haagen-Dazs. Therefore, the ice cream suppliers have moderate leverage to bargain over price.Substitute Products Many substitutes products are available within the dessert and frozen food industry (cookies, pies, Popsicles, cake). The ease with which buyers can switch to substitute products is an indicator of the strength of this competitive force. Since substitute products are readily available and attractively priced compared to the relatively higher priced super-premium ice cream products, the competitive pressures posed by substitute products are intense. Companies that enter the super-premium market, therefore, must adopt defensive strategies that convince buyers their higher priced produc t has better features (i. . , quality, taste, innovative flavors) that more than make up for the difference in price. Potential New Entrants The barriers to entry within the ice cream industry are moderate due to the brand preferences and customer loyalty toward the larger and more established rival companies. Other obstacles to new entrants include strong brand loyalty to established firms and economic factors, such as the requirement for large sources of capital, specialized mixing facilities and manufacturing plants.In addition, the accessibility of distribution channels can be difficult for an unknown firm with little or no brand recognition. Although Ben Cohen and Jerry Greenfield successfully launched their ice cream business from a gas station with modest funding and staff, they had to initially rely on a rival company’s distribution channels (and later on independent distributors) in order to gain a stronger foothold in the market. Figure 3. Porter’s Model of t he Five Competitive Forces S ubstituteProducts Many S ubstitute sBuye rs S trong le rage ve Largenum rs be Rivalry Among Competing Sellers Many large established rivals S upplie rs Mode le rage rate ve Ne Entrants w Mode Barrie to rate rs Entry 12 As discussed above, several competitive forces on the ice cream industry are relatively strong, suggesting that it is a difficult industry to be competitive in. However, Ben & Jerry’s implementation of a differentiation strategy has helped the company effectively defend against these forces and gain a competitive advantage.The use of higher quality ingredients and ecofriendly packaging has created a unique brand image that helps develop brand loyalty and beat rival competitors to the market. The company’s social activism toward the community and use of innovative flavors also help insulate the firm from the strong bargaining power of buyers since rival firms and/or products are relatively less attractive. Similarly, Ben & Jer ry’s product differentiation strategy also allows the company to fend off threats of substitute products that don’t have comparable features.The company’s differentiation strategy also mitigates the threat of potential entrants due to high buyer loyalty for a superior product. The moderate threat posed by suppliers is tackled by two other facets of the company’s strategy: ensuring the viability of suppliers by paying premium prices for raw materials, and redesigning the distribution network to gain more control and reduce reliance on rival distribution channels. The â€Å"Sixth† Force (Non-Market Forces) Industry Regulations Ben & Jerry’s is subject to regulation by the United States Food and Drug Administration (FDA) and the Vermont Department of Agriculture.In response to stringent labeling criteria for healthoriented foods, the company made changes in its labeling regarding its low fat/low cholesterol products (SEC Report, 1999). FDA regu lations may potentially affect the ability of the company, as well as rival firms in the ice cream industry, to develop and market new frozen dessert products. However, given that Ben & Jerry’s is already in compliance with the FDA, it is unlikely that such regulations will have a significant impact on the company’s operations.Other regulatory forces include potential RCRA liability due to the company’s generation of hazardous materials during the manufacturing process. However, Ben & Jerry’s is currently exempt from these hazardous materials regulations since the level of hazardous materials generated is below the threshold for requiring a permit; indeed, by staying small and maintaining regulatory compliance, the company gains a competitive advantage over larger companies that may have to meet stricter regulations or be more susceptible to non-compliance.Public and Stakeholders Public and stakeholder concerns over health and nutrition and environmental pollution exert a strong force on the ice cream industry. The heightened consumer awareness and demand for low-cholesterol or low-fat foods can force companies to respond with ingredient substitutions and differentiated product lines to stay in business. Similarly, the increasing consumer trend toward supporting eco-friendly product packaging and all-natural, organic ingredients can cause ice cream companies to revise their strategies.Ben & Jerry’s, with it’s commitment to providing all natural ingredients, a low-fat ice cream line, and chlorine-free paper for example, is in a better position to attract those consumers who are willing to pay more to get more. Given Ben & Jerry’s proactive strategic approach, the company can effectively insulate itself from these public pressures and enjoys a significant competitive advantage over those companies that resist incorporating socially progressive or eco-friendly values into their strategies. 13SWOT Analysis Another m eans of analyzing the strategies of the company is by examining the strengths and weaknesses of its internal resources, and then exploring the external threats and opportunities facing the company. By developing a clear understanding of these factors, we can evaluate where the company should go from here. Figure 4 identifies these forces for both the general corporate and environmental strategies of Ben & Jerry’s. Based on our analysis, we feel that much of the company’s internal strengths and external opportunities lie within its environmental strategy.This gives further evidence to suggest that the environmental and corporate strategies are well integrated, and that this integration is crucial to the future success of the company. Figure 4. SWOT Analysis of Ben & Jerry’s Strengths Product Differentiation Brand Name & Image Creative Advertising & Promotion Innovation Environmental Leader Threats Image Deterioration Increased Competition Shift in Buyer Preferenc es Loss of Sales to Substitutes Bush Presidency Conflicts with Unilever Weaknesses Dependence on Outside Distribution High Cost Financial Instability Geographic LimitationsOpportunities Growing Consumer Environmental Interest Geographic Expansion Market Diversification Alliances Key Success Factors A successful strategy incorporates the company’s efforts to be competent on all of the industry’s key success factors and to excel on at least one factor (Thompson and Strickland, 1998). In the highly competitive super-premium ice cream industry, the key factors of success include product 14 differentiation, a strong distribution network, brand loyalty and clever advertising.As shown in Figure 5, Ben & Jerry’s excels in these (and other) key factors, and has a particular expertise on product differentiation to gain a competitive advantage. Product Differentiation All-natural ingredients Innovative flavors High quality Brand Loyalty Favorable reputation with environmen tally-aware consumers Access to Distribution Network use of independent suppliers and existing channels Social Activism Corporate philanthropy Ben & Jerry’s Fund Eco-friendly Product Dioxin-free pint containers Recycled materials Hormone-free dairy supplyClever advertising Free ice cream samples Grassroots and local image Figure 5. Ben & Jerry’s Key Factors of Success. STRATEGIC CONSISTENCIES According to the Ben & Jerry’s Mission Statement, the goal of the company is to integrate product quality with economic success and social responsibility. One of the key strategic factors that successfully links these three missions together is the differentiation strategy. In this respect, the environmental and general corporate strategies are very much in tune with each other.Differentiation not only increases the competitive advantage of Ben & Jerry’s, but it also leads to environmental excellence in the operation of the company. By focusing its attention and ener gy on recycling, energy efficiency, and product innovation, Ben & Jerry’s can reduce its impact on the environment while at the same time reducing product cost. This is being achieved through the work of the Packaging Information Group that focuses on reducing the incoming packaging which adds to the waste stream, and the production of the compostable â€Å"Eco-Pint. † These and other actions help build a competitive advantage within the market.By using allnatural, rBGH-free ingredients and dioxin-free containers, Ben & Jerry’s can also attract environmentally minded consumers to its products, thus increasing market share. At the same time, this practice helps protect the environment and support family-farming and sustainable agriculture. Therefore, this differentiation strategy has the versatility of providing a better product that can attract customers, command a higher price, and protect the environment, thus satisfying the three integral parts of the company ’s mission and both the corporate and environmental strategies.In order for this environmental differentiation strategy to be sustainable there needs to be a willingness among customers to pay for environmental quality, credible information about the company’s environmental attributes, and insulation against imitation. The company’s steady 15 growth in revenue over the last few years shows that the customer base is there and that they are more than willing to pay a premium price for a superior quality product. Ben & Jerry’s addresses the latter two issues through its informative website, external audits, and constant innovation creating unique, hard to imitate flavors and products.Another way in which the environmental strategy and corporate strategy are consistent with each other is in the area of regulatory compliance. As a result of the attention Ben & Jerry’s pays to the environmental risks associated with its production process, and the effort s made by the company to ensure that negative impacts to the environment from its business operations are minimized, Ben & Jerry’s has had very few compliance issues and has never been issued any penalties by Federal regulators (1998 CERES Report). In addition to the environmental benefit from such compliance, there is a beneficial impact on the business as well.By minimizing operational costs, the company gains a potential competitive advantage over competitors with less stringent environmental controls that may face compliance issues. Overall, the company’s environmental strategy and general business strategy are well integrated. By focusing on differentiation, which is in large part due to environmental policies and programs, the company gains a competitive advantage over its rivals. As the company grows and increases its annual profits, more money can therefore be donated to social and environmental causes through its various giving channels.Ben & Jerry’s ha s positioned itself so that its success is highly dependent on its environmental image, therefore the two strategies are intimately linked. There are, however, some disconnects between strategies. There are a few instances where environmental goals take a back seat to company profits. Examples of these disconnects are described in the next section below. DISCONNECTS BETWEEN STRATEGIES Although the mission of the company is to temper economic growth with environmental responsibility, during our research we discovered several ccasions in which company profits clearly outweighed the desire to be as environmentally proactive as possible. For example, Ben and Jerry’s currently packages its Peace Pops inside a plastic wrapper and paper board box. This change was in response to a belief that sales had been declining due to customer disapproval of its original packaging, which consisted solely of a plastic wrapper. This change has led to an increase of packaging materials by 152,000 pounds annually (ibid. ).This is in direct conflict with the company’s policy on waste reduction and illustrates the priority given to company profits over environmental concerns. Similarly, an effort to introduce an organic line of desserts, which would have been more in line with its environmental strategy, was abandoned due to economic costs. Another example of a â€Å"disconnect† is in the company’s energy use. Ben & Jerry’s recognizes that its operation, like any industrial process, is energy intensive. However, as of 1998, the company had no formal policy on energy use and conservation (ibid. ).While the plants and scoop shops make attempts to be energy efficient, the company relies on non-renewable sources of energy for its production processes, instead of using green energy that would be less damaging 16 and more consistent with its environmental policies. Although not expressly stated, it seems that economic cost is once again superseding sustain ability. While Ben & Jerry’s works to reuse and recycle as much of its waste as possible, it is the policy of the company to send any hazardous waste that cannot be recycled to a hazardous waste incinerator to be handled.Although this may be the most economical method of treating hazardous waste, it is not necessarily the most environmentally sound disposal technology, and directly contradicts the company’s environmental goals. In keeping with the corporate strategy of maintaining a local, down home image, many sacrifices to the environmental strategy are made. The most glaring disconnect is in the national distribution of the product from a single state. Manufacturing in Vermont requires extensive shipping of its products; this is a highly energy-intensive process.In 1998, emissions from the distribution of its products totaled over 113,000 pounds for carbon monoxide, 15,000 pounds of nitrogen oxides, 7,000 pounds of hydrocarbons, 1,600 tons of carbon dioxide, and 400 pounds of particulate matter (ibid. ). This tradeoff illustrates an inherent inconsistency between the corporate and environmental strategies of the company. While these disconnects do occur, we feel that Ben & Jerry’s has done an excellent job in integrating its business and environmental strategies and balancing profitability with environmental protection.UNILEVER ACQUISITION AND IMPACTS ON STRATEGY Ben & Jerry's strategy will likely shift towards larger-scale economic growth in response to the recent Unilever acquisition of the company in April 2000. Ben & Jerry’s emphasized that this acquisition will allow the company to create an even more dynamic, socially positive ice cream business with global reach (www. lib. benjerry. com). In addition, the financial backing of a larger and established company will strengthen Ben & Jerry’s competitive advantage with respect to the five forces, particularly the threat of competition from rival firms.According to the co founders, â€Å"neither of us could have anticipated, twenty years ago, that a major multinational would some day sign on, enthusiastically, to pursue and expand the social mission that continues to be an essential part of Ben & Jerry's and a driving force behind our many successes. But today, Unilever has done just that. While we and others certainly would have preferred to pursue our mission as an independent enterprise, we hope that, as part of Unilever, Ben & Jerry's will continue to expand its role in society† (ibid).The agreement between Unilever and Ben & Jerry’s ensures that the current social mission of Ben & Jerry's will be encouraged and well-funded, which will lead to improved performance in this area; and an opportunity has been offered for Ben & Jerry's to contribute to Unilever's social practices worldwide. According to Richard Goldstein, President of Unilever Foods of North America, Unilever feels that â€Å"Ben & Jerry's has a significant opportunity outside of the United States. Unilever is in an ideal position to bring the Ben & Jerry's brand, values and socially responsible message to consumers worldwide.Much of the success of the Ben & Jerry's brand is based on its connections to basic human values, and it is our hope and expectation that Ben & Jerry's continues to engage in these critical, global economic and social missions† (ibid). Based on the nature of this agreement, Unilever is pledging to uphold Ben & Jerry’s mission of 17 integrating product quality with economic performance and social responsibility. Therefore, we do not expect that Ben & Jerry’s environmental strategy will change, except that more innovations can possibly be made with the augmented financial and human resources.In addition, the social and environmental mission of the company will have the opportunity to be applied on a more global scale. As far as the preservation of the company’s corporate strategy, Unilever’s gl obal presence and greater access to distribution channels will allow for Ben & Jerry’s to continue to expand internationally, thus increasing market share, profitability, and competitive advantage. Potential threat to Ben & Jerry’s success as a result of the Unilever acquisition are the negative public perception of the company (i. e. elling out), loss of consumer support and brand loyalty. This can be mitigated through marketing strategies geared towards alleviating public fears and ensuring that the underlying goals and policies of the company will remain intact. RECOMMENDATIONS & CONCLUSION Based on our analysis, we believe that the corporate and environmental strategies are appropriate and well integrated. While there are some disconnects between the two strategies, overall it is clear that the company strives to achieve economic success and environmental responsibility.Up to now, Ben & Jerry’s has been successful at maintaining this balance. The primary con cern is how well the company can insulate itself from future competition that could threaten its position as a leader in the super premium frozen dessert industry. In light of the threats identified in the SWOT analysis, we recommend that Ben & Jerry’s implement the following suggestions: †¢ †¢ †¢ †¢ †¢ †¢ †¢ Protect its public image in light of the recent acquisition by Unilever by maintaining its current position as a market-leader in environmentally and socially responsible business practices.Continue cost-cutting efforts through implementation of further waste reduction, energy conservation, and recycling programs. Draft a formal written policy on energy use. Frequent product innovation and diversification to address threats of substitute and imitation products and meet changing consumer preferences (i. e. lactose-free ice cream, all organic line of frozen desserts, cookies) Continue franchising scoop shops to increase its market reach a nd withstand growing competition, both nationally and internationally.As the company grows, there will be greater waste generation and distribution-related emissions – increase the development of cleaner manufacturing, disposal, and distribution technologies to ensure that the company continues to stay in compliance. Develop additional manufacturing plants and distribution centers outside of Vermont to reduce distribution costs, cut down on distribution-related emissions, and increase production volume of the company. If George W.Bush becomes President, there could be a relaxation of environmental regulations and attitudes, thus leveling the playing field and eroding Ben & Jerry’s competitive advantage over firms that may be less environmentally responsible. The 18 †¢ company needs to continue to focus on its differentiation strategy to retain its edge and bolster customer loyalty and support. Continue to work with Unilever to ensure that Ben & Jerry’s rema ins an independent subsidiary with its social and environmental values firmly in place. Protect itself from assimilation into the multinational corporate identity.In conclusion, our analysis has illustrated that a company can be competitive without sacrificing its environmental goals and strategies. Through differentiation, Ben & Jerry’s has established itself as both a leader in product quality and environmental responsibility. The challenge will be for Ben & Jerry’s, after being acquired by a multinational conglomerate, to demonstrate that it is still possible to maintain its uniqueness and proactive environmental strategy. So can Ben & Jerry’s continue to serve up a double scoop of being green and making green?Stay tuned for the next flavor of the month. 19 BIBLIOGRAPHY Ben & Jerry’s 1998 CERES Environmental Report, 1998. Securities and Exchange Commission Annual Report for Ben & Jerry’s Homemade, Inc. Form 10-K, 1999. Spolsky, Joel, â€Å"How to Grow a Business,† http://www. fool. com, August 4, 2000. Thompson, Arthur A. Jr. , Strickland, III, A. J. Crafting and Implementing Strategy, Text and Readings, 10th edition. Irwin McGraw-Hill, 1998. www. hoovers. com www. benjerry. com www. lib. benjerry. com Substitute Products Many S ubstitute s 20