The Business Environment And Strategic Analysis Marketing Essay

The Business Environment And Strategic Analysis Marketing Essay ITC is one of Indias foremost private sector companies with a market capitalization of nearly US $ 19 billion and a turnover of over US $ 5 billion.* ITC is rated among the Worlds Best Big Companies, Asias Fab 50 and the Worlds Most Reputable Companies by Forbes magazine, among Indias Most Respected Companies by Business World and among Indias Most Valuable Companies by Business Today. ITC ranks among Indias `10 Most Valuable (Company) Brands. SWOT is an acronym used to describe the particular Strengths, Weaknesses, Opportunities and Threats that are strategic factors for a specific company. SWOT analysis should not only result in the identification of a companys distinctive competencies, the particular capabilities and resources that a firm possess but also in the identification of opportunities that the firm is currently able to take advantage of due to lack of appropriate resources. SWOT analysis is an analytical technique used in strategic management BCG MATRIX The Boston Consulting Group (BCG) reflects the companys portfolio of investments. Each of the companys product lines are plotted in a matrix according to its growth rate of the industry and its relative market share The BCG matrix results in four types of decisions they are Question marks, Stars, Cash Cows and Dogs. PEST ANALYSIS Pest term is used to describe macro environmental factors namely political (legal), economic, social and technological. It helps the firm in understanding market growth or decline, its market position, its potential and its direction PORTERS 5 FORCES MODEL Michael Porters famous Five Forces of Competitive Position model provides a simple perspective for assessing and analyzing the competitive strength and position of a corporation or business organization ITC- INTRODUCTION ITC is one of Indias foremost private sector companies with a market capitalization of over US $ 19 billion and a turnover of US $ 5 billion. Rated among the Worlds Best Big Companies, Asias Fab 50 and the Worlds Most Reputable Companies by Forbes magazine, among Indias Most Respected Companies by Business World and among Indias Most Valuable Companies by Business Today, ITC ranks third in pre-tax profit among Indias private sector corporations. As one of Indias most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y.C. Deveshwar calls this source of inspiration a commitment beyond the market. In his own words: ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part. HISTORY EVOLUTION The story of the Imperial Tobacco Company of India Ltd. extraordinarily though it may sound, starts long before the company was established, or even thought of. It starts not in India, but in the US. It was started by James Buchaman Duke in 1881. W. Duke Sons Company was doing a flourishing business around 1889 merged with other four players in the market and set up the American Tobacco Company ( ATC ). ATC looked at the British market along with Imperial Tobacco Company Ltd. floated a new company, the British American Tobacco Company Ltd.( BAT ) which was to handle trade outside USA and Britain. With India having centuries old tradition of tobacco, BAT looked into this market. ITC was incorporated on August 24, 1910 under the name of Imperial Tobacco Company of India Limited. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Companys existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into Indias future. The Companys headquarter building, Virginia House, which came up on that plot of land two years later, has become Kolkatas most venerated landmarks. The Companys ownership progressively indianised, and the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the Companys multi-business portfolio encompassing a wide range of businesses Cigarettes Tobacco, Hotels, Information Technology, Packaging, Paperboards Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting Stationery the full stops in the Companys name were removed effective September 18, 2001. The Company now stands rechristened ITC Limited. ITC- MISSION STATEMENT An organizations mission is the purpose or reason for the organizations existence. it tells what the company is providing for the society. A well conceived mission statement defines the fundamental, unique purpose that sets the company apart from other firms of its type and identifies the scope of the companys operations in terms of product, services offered and market served. SUSTAIN ITCS AS ONE OF INDIAS MOST VALUABLE CORPORATIONS THROUGH WORLD CLASS PERFOMANCE, CREATING GROWING VALUE FOR THE INDIAN ECONOMY AND THE COMPANYS STAKEHOLDERS ITC-VISION A vision statement describes wat the organization would like to become in the future. It helps in creating a sense of direction for the company and its employees and leads them towards attaining the goals. TO ENHANCE THE WEALYH GENERATING CAPABILITY OF THE ENTERPRISE IN A GLOBALISING ENVIRONMENT DELIVERING SUPERIOR AND SUSTAINABLE STAKEHOLDER VALUE ITC LEADERSHIP- CORPORATE GOVERNANCE The governance framework determines whom the organization is there to serve and how the purposes and priorities of the organization should be decided. It is concerned with both the functioning of the organization and the distribution of power among different stake holders. Governance chain- the governance chain identifies all those groups that have a legitimate influence on the organizations purposes. There are likely to be several conflicts of interest both between different stake holder groups and for individual managers of directors as they try to balance these various interests. The role of the governing bodies- the primary statutory responsibility of the governing body of an organization is to ensure that the organization actually fulfills the wishes and purposes of the owners. THE ITC WAY ITC defines Corporate Governance as a systemic process by which companies are directed and controlled to enhance their wealth generating capacity. Since large corporations employ vast quantum of societal resources, ITC believes that the governance process should ensure that these companies are managed in a manner that meets stakeholders aspirations and societal expectations. ITC has won the National Award for Excellence in Corporate Governance 2006 from the Institute of Company Secretaries of India. Leadership within ITC is exercised at three levels. The board of directors Corporate management committee Divisional management committee The Board of Directors at the apex, as trustee of shareholders, carries the responsibility for strategic supervision of the Company. The strategic management of the Company rests with the Corporate Management Committee comprising the whole time Directors and members drawn from senior management. The executive management of each business division is vested with the Divisional Management Committee (DMC), headed by the Chief Executive. Each DMC is responsible for and totally focused on the management of its assigned business. This three-tiered interlinked leadership process creates a wholesome balance between the need for focus and executive freedom, and the need for supervision and control. Since the commencement of the liberalization process, Indias economic scenario has begun to alter radically. Globalization will not only significantly heighten business risks, but will also compel Indian companies to adopt international norms of transparency and good governance. Equally, in the resu ltant competitive context, freedom of executive management and its ability to respond to the dynamics of a fast changing business environment will be the new success factors. ITCs governance policy recognizes the challenge of this new business reality in India. CORE PRINCIPLES ITCs Corporate Governance initiative is based on two core principles: Management must have the executive freedom to drive the enterprise forward without undue restraints This freedom of management should be exercised within a framework of effective accountability ITC believes that any meaningful policy on Corporate Governance must provide empowerment to the executive management of the Company, and simultaneously create a mechanism of checks and balances which ensures that the decision making powers vested in the executive management is not only not misused, but is used with care and responsibility to meet stakeholder aspirations and societal expectations. CORNERSTONES From the above definition and core principles of Corporate Governance emerge the cornerstones of ITCs governance philosophy, namely trusteeship, transparency, empowerment and accountability, control and ethical corporate citizenship. ITC believes that the practice of each of these leads to the creation of the right corporate culture in which the company is managed in a manner that fulfils the purpose of Corporate Governance. The governance structure of ITC, Strategic supervision by Board of Directors Strategic management by Corporate Management Committee Executive management by the Divisional Chief Executive assisted by the Divisional Management Committee The 3-tier governance structure thus ensures that: Strategic supervision (on behalf of the shareholders), being free from involvement in the task of strategic management of the Company, can be conducted by the Board with objectivity, thereby sharpening accountability of management. Strategic management of the Company, uncluttered by the day-to-day tasks of executive management, remains focused and energized. Executive management of the divisional business, free from collective strategic responsibilities for ITC as a whole, gets focused on enhancing the quality, efficiency and effectiveness of its business. CORPORATE SOCIAL RESPONSIBILITY Corporate social responsibility is the detailed issues on which an organization exceeds its minimum required obligations to stake holders. It has been noted that companies increased their awareness of and level of activity in some aspects of social responsibility but they seemed to limit their involvement to a relatively narrow range of issues. It was also indicated that most organizations failed to seek out best practice elsewhere and this they suggested, indicated that social responsibility considerations were not pursued as keenly as commercial activities. ITC believes that an effective growth strategy for our nation must address the needs of rural India, home to 75% of our poor. It is imperative to ensure that Indias economic growth is inclusive, embracing its villages, so as to free millions of our disadvantaged citizens from the indignity of poverty. It is ITCs belief that Indias rural transformation cannot be brought about by the government alone. Nor can the efforts of a few enterprises make a decisive difference. Only an inspired public-private partnership can transform lives and landscapes in rural India. ITCs humble endeavors have demonstrated that it is possible to create and sustain a model that can harmonize the need for shareholder value creation with making a substantial contribution to society. For ITC, these are expressions of a commitment beyond the market. Of a conviction that country must come before corporation of a true pride in being Citizen First. E-CHOUPAL The e-Choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture, characterized by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others. E-Choupal, launched in June 2000 unshackles the potential of Indian farmer who has been trapped in a vicious cycle of , Low risk taking ability Low investment Low productivity Weak market orientation Low value addition Low margin Low risk taking ability This made Indian farmers and Indian agribusiness sector globally uncompetitive, despiterich abundant natural resources. The Model in Action: Appreciating the imperative of intermediaries in the Indian context, e-Choupal leverages Information Technology to virtually cluster all the value chain participants, delivering the same benefits as vertical integration does in mature agricultural economies like the USA. With a judicious blend of click mortar capabilities, village internet kiosks managed by farmers called sanchalaks themselves, enable the agricultural community access ready information in their local language on the weather market prices, disseminate knowledge on scientific farm practices risk management, facilitate the sale of farm inputs (now with embedded knowledge) and purchase farm produce from the farmers doorsteps (decision making is now information-based). Real-time information and customized knowledge provided by e-Choupal enhance the ability of farmers to take decisions and align their farm output with market demand and secure quality productivity. The aggregation of the demand for farm inputs from individual farmers gives them access to high quality inputs from established and reputed manufacturers at fair prices. As a direct marketing channel, virtually linked to the mandi system for price discovery, e-Choupal eliminates wasteful intermediation and multiple handling. Thereby it significantly reduces transaction costs. e-Choupal ensures world-class quality in delivering all these goods services through several product / service specific partnerships with the leaders in the respective fields, in addition to ITCs own expertise. While the farmers benefit through enhanced farm productivity and higher farm gate prices, ITC benefits from the lower net cost of procurement (despite offering better prices to the farmer) having eliminated costs in the supply chain that do not add value. ITC has taken care to involve farmers in the designing and management of the entire e- Choupal initiative. The active participation of farmers in this rural initiative has created a sense of ownership in the project among the farmers. They see the e-Choupal as the new age cooperative for all practical purposes. This enthusiastic response from farmers has encouraged ITC to plan for the extension of the e-Choupal initiative to altogether 15 states across India over the next few years. On the anvil are plans to channelise other services related to micro-credit, health and education through the same e-Choupal infrastructure. CAUSE OF UNDERPRIVILEGED CHILDREN ITC launched its notebooks brand Classmates, deliberately pricing itself 10-15 per cent higher than the competition, between Rs 10 and Rs 40. This ensured that it created an affordable-yet-aspirational image and also send a hidden message of being a superior product (60 gsm paper, bleached without using chlorine). Then, ITC focused on the design elements of notebooks: each Classmate notebook has a theme on the cover and related information inside. Then, the last two pages of the notebook have trivia and the back cover highlights the corporate social responsibility initiatives of the company Re 1 from each notebook sold is set aside for the cause of underprivileged children ITC supports 60,000 children in rural India. Providing uniforms and books, improving school buildings, adding electricity connections, lights and fans and running over 674 Supplementary Learning Centers, helping rural children aspire to a better tomorrow. This is one of the many ways in which ITC expresses its belief that country must come before corporation. WOMEN ENTREPRENEURS The need of the hour is to diversify rural livelihoods. Towards this end, ITC has forged an empowering partnership with rural women the most effective development workers. ITCs intervention leverages micro-credit and skills training to generate alternate employment opportunities. Increased income in the hands of rural women means better nutrition, health care and education for their children. Working with NGOs, ITC has organized village women into micro-credit groups. Group members make monthly contributions to create a savings corpus. The corpus is used to extend soft loans to group members, thereby eliminating the stranglehold of the moneylender. ITC provides training to group members to handle bank accounts and understand the nuances of government development programs. Empowered groups function autonomously and take their own decisions, including sanction of loans to fellow-members and collection of repayments. Well-managed micro- credit groups with no default records receive further support from ITC in the form of seed money for self-employment activities. Venture funds provided by ITC have already spawned hundreds of women entrepreneurs. Their earnings, ranging from Rs 70 to Rs 150 per day, not only supplement household incomes but also significantly enhance their self-esteem. ITC also conducts skills training to enhance employability. Pickle-making, fish- processing, vermicomposting, spice processing and agarbatti-rolling in rural areas and chikankari, garment-sewing, driving and computer-aided secretarial training in semi- urban areas are some of the examples. ITC goes a step further to help find employment for these trained women in areas related to its operations. This program is helping women across Andhra Pradesh, Karnataka, Madhya Pradesh, Uttar Pradesh and Bihar. Through its various initiatives, ITC touches the lives of 4 million villagers and has proved that it is socially responsible ITC STRATEGIES ITCs diversified status originates from its corporate strategy aimed at creating multiple drivers of growth, anchored on its above mentioned time-tested core competencies. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. CONGLOMERATE DIVERSIFICATION When the management feels that the firms outstanding capabilities or skills can be better utilized and transferred into other industries, though unrelated to the current one, the firm then adopts conglomerate diversification strategy. ITC has adopted Conglomerate (Unrelated) Diversification strategy and accordingly has entered into an array of business apart from its traditional tobacco industry that includes stationery, FMCG, branded apparel, agri-business and packaging and paperboards. STRATEGIC BUSINESS UNIT It is that part of the organization which is a cruicial unit for implementing its strategies. It is also that part which fetches largest revenues. In ITC, tobacco industry is its SBU, as it fetches largest revenue and is its first business which has given the conglomerate a national identity. Also it has empowered ITC with an excellent distribution network which is vital for its success. This network is shared by all other business units of ITC. BACKWARD INTEGRATION ITCs Packaging Printing Business Division was set up in 1925 as a strategic backward integration for ITCs Cigarettes business. It is today Indias most sophisticated packaging house. State-of-the-art technology, world-class quality and a highly skilled and dedicated team have combined to position ITC as the first-choice supplier of high value added packaging. ITCs Packaging Printing Business is the countrys largest convertor of paperboard into packaging. It converts over 35,000 tonnes of paper and paperboard per annum into a variety of value-added packaging solutions for the food beverage, personal products, cigarette, liquor, cellular phone and IT packaging industries. It has also entered the Flexibles and Corrugated Cartons business. The Division supplies value-added packaging to the Companys Cigarettes business. Its client list includes several well-known national and international companies like British American Tobacco, Surya Nepal Private Limited, VST Industries, , UB Group, Shaw Wallace, Seagrams, Allied Domecq, Whyte Mackay, Hindustan Lever, Tata Tetley and Nestle, Reckitt Benkiser India Limited, etc. STRATEGIC BUSINESS UNIT It is that part of the organization which is a cruicial unit for implementing its strategies. It is also that part which fetches largest revenues. In ITC, tobacco industry is its SBU, as it fetches largest revenue and is its first business which has given the conglomerate a national identity. Also it has empowered ITC with an excellent distribution network which is vital for its success. This network is shared by all other business units of ITC. FORWARD INTEGRATION ITC Limited, the tobacco-cum-hotels major which has been fast transforming itself into a FMCG company, is targeting students by customizing notebooks for schools under the Classmate brand name and this is a part of the companys diversification plans to foray into the other sectors. Classmate notebooks, a sub-brand of Expressions has been customized for schools and is available at retail stores across the country. For this purpose, ITC has entered into arrangements with 150 renowned ICSE schools across the country. A portion of the money coming from the sale of the notebooks would be contributed to some social. The division is targeting the revenue of 100 crore. The business division of ITC is primarily a forward integration of the companys paper manufacturing activity. With ITC having a state of the art paper manufacturing plant at Bhadrachalam in Andhra Pradesh the division has been using the high quality ECF paper for its notebook to make it more eco friendly. MARKETING STRATEGY The marketing logic by which business unit hopes to achieve its marketing objectives. PROMOTION STRATEGY Promotion strategy is the strategy used to communicate the merits of the products and to persuade the target customers to buy it. Wills Lifestyle offers a complete lifestyle wardrobe for the premium consumers incorporating the latest fashion trends. Their clothing is not only the latest in fashion but they also come out with clothing for different seasons. They are very active in promoting their products by conducting fashion shows in national and international levels and sponsoring many fashion shows like India Fashion Week etc. PUSH STRATEGY THE MYSTERY SHOPPER A push strategy involves pushing the product through distribution channels to the final consumer. The firm directs its marketing activities (primarily personal selling and trade promotions) towards channel members to induce them to carry the product and to promote it to final consumers. Companies spend a large amount of money on trade promotion in order to gain or hold shelf space in retail outlets. Trade promotion includes discounts, in-store special offers designed to push products through the distribution system. As a part of its promotional strategy, ITC put up posters in the kiranas and used the concept of mystery shopping in case of the tobacco industry. Promoters were sent to the kiranas in town to inform the kirana owners of the mystery shopper, who will visit them at any time, any day and ask for a cigarette. The shop owner has to offer him only an ITC brand cigarette first, even if he requests for another brand. If he insists on another brand, then the shop owner can give h im the requested brand. If he does so, he will be rewarded with gifts like lighters. He will then be qualified to enter into a lucky draw and if he becomes lucky will get a fan or radio set. Also a bumper prize comprising of a trip to Mumbai or Singapore was offered. ITC adopted this strategy to increase its sales and awareness and to gain favoritism from the kirana owners. In anticipation of the mystery shopper, the kirana owners kept offering ITC cigarettes to all customers first and only upon a request or insistence they sold the requested brand. This increased the awareness and sales, while the prizes gathered the favoritism of mystery shoppers. PULL STRATEGY The Pull strategy is where the producer directs its marketing activities (primarily advertising and consumer promotion) towards final consumers to induce them to buy the product. If the pull strategy is effective, consumers will then demand the product from channel members, who will in turn demand it from producers. Thus under a pull strategy, consumer demand pulls the product through the channels. The sunfeast Ready to Eat Pasta came into the market recently. They have been able to establish its presence with 6 per cent in volumes of the branded noodles market and they come number two behind MTR foods in the ready-to-eat market. This has been achieved by excessive advertising which pulls the products through the distribution channels. The strategy adopted is to spend more money on consumer advertising designed to build brand awareness so that shoppers will ask for the products. COMPETITIVE TACTICS PIONEER FIRST MOVER Timing tactic- The first company to manufacture and sell a new product or service is called first mover or pioneer. The advantage of being a first mover is that the company is able to establish a reputation as industry leader, gain cost leadership, and achieve high profits from buyers. The first mover can also set standards for all subsequent products. The first mover has sufficient resources to both exploit the new markets and defend its position against its late rivals. ITC-Welcomgroup pioneered a holistic concept of branded accommodation in the hospitality industry. It was the first to launch the powerful idea of a Hotel within a Hotel by segmenting and branding the hotel services. It created exclusives hotels and executive clubs each catering to the needs of the global business traveler with unmatched quality and a range of services. ITC-Welcomgroup was also the first to brand its cuisine. The Bukhara, the Dakshin and the Dum Pukht are today powerful cuisine brands, which delight connoisseurs in restaurants in several ITC-Welcomgroup hotels. LATE MOVER Late Movers are those who are able to imitate the technological advance of others, keep risks down by waiting until a new market is established and take advantage of the first movers inclination to ignore market segments. ITC entered the biscuit business very late when the two major players Britannia and Parle were busy biting of chunks of the national market among themselves, with a host of smaller brands in various regions. The strategy that the company followed was to find loopholes in the industry into which they can tap. Therefore before entering the segment, ITC dug into market research. Research revealed that the category had gaps which ITC could settle into. Findings revealed that consumers wished to taste new and innovative products. That was precisely what the competition had not done in a big way. ITC launched Sunfeast with six ranges. But it was a calculated risk. ITC stuck to category favorites like Glucose, Marie and Bourbon cream. Along with that, it also launched innovations such as orange-flavored Marie, Marie light and butterscotch-flavored cream biscuits. Sunfeast followed this up with the launch of Sunfeast Milky Magic. More recently, it also has launched the Sunfeast Snacky and Su nfeast In August 2003, a month after its launch, the company undertook a major sampling exercise to promote the product. For two years then, the brand did all the usual rounds riding behind buses, blocking television spots, booking that corner space in your favorite newspaper and so on. Well differentiated advertisements, some which showed a complete cream world with cream rivers, cream mountains and cream trees, were targeted at kids watching cartoon channels. At the same time, on general entertainment channels, mothers received information on the importance of glucose, the wholeness of wheat and so on. Also, the company tied up with Bey Blades, the popular television series that was a rage among children, to promote itself. PRICING MODEL TWO PRONGED STRATEGY The biscuits industry is very competitive and the players fight for market shares. One way of gaining market share is by pricing the products attractively. The industry now has two clear models. Parle products play the low price game at all varieties of biscuits from glucose to cream. Sunfeast looks at a two-pronged strategy where it looks for high margins in cream variants and volumes from the Marie and Glucose segments. It does this as it cannot expect volumes of sales in the cream variant business and so they have a higher margin of profit. In the marie and glucose segment there is heavy competition and the biscuits hardly have any differentiation like the cream biscuit market and the consumers dont pay extra if there is no innovation in the product, so they look for having a lower margin of profit and more volume of sales. The strategy adopted by them is very profitable for the company. FUNCTIONAL STRATEGY Outsourcing is purchasing from someone else a product or service instead of provided it internally. The key to outsourcing is to purchase from outside only those activities that are key to the companys distinctive competencies. ITCs agarbatti SBU and Cottage Industries, Aurobindo Ashram, Pondicherry, which makes the Spriha brand of handmade incense sticks have a strategic tie-up The agarbatti SBU, which recently launched the Mangal Deep range of agarbattis through 100 per cent outsourcing from the small, medium and cottage sector, has launched an assorted Spriha gift pack product. The gift packs, designed and developed in-house by ITC and specially created (with handpicked materials) by Cottage Industries, Aurobindo Ashram, will be in two sizes, and will contain items like high quality incense sticks in two fragrances, a perfumed designer candle, a collection of choice dhoops and a handy ceramic agarbatti/dhoop holder (all hand-made) in a compact box pack. Priced at Rs 100 and Rs 150 (two sizes), the gift packs have been launched in Bangalore as part of a test marketing exercise through outlets stocking ITCs Greetings Cards (Expressions). Planned as a stand-alone gift item, especially for festive occasions, the plan is to utilize the available in-house greeting cards distribution channel to position the product, and gradually scale up visibility at various gift shops through a national roll-out. Cottage Industries, Pondicherry, produces half-a-million packs of handmade Spriha agarbattis per month for ITC under a contractual agreement. ITC follows strict quality parameters in all its sectors and in this sector has expressly stated that it will buy from any cottage industry that agrees to adhere to their quality standards. GROWTH STRATEGIES Growth strategies are defined to achieve growth in sales, assets profits or

A View on Perspectivism :: Philosophy Philosophical Essays

A View on Perspectivism Perspectivism is the doctrine that most or all large philosophical questions have many proposed answers, and many views on how to judge between those proposed answers, and that intelligent people of good will are likely to continue to have differing perspectives on these large questions of philosophy indefinitely. There are both historical and theoretical reasons for embracing this view. Historically, it is manifest that though philosophers have often attained views which are highly satisfying to themselves personally, few perspectives have won a con sensus even in their own times, and none have won a consensus over time. (I refer here to a consensus on some positive view; a consensus on the falsity of views, usually older ones, may be commonly found. But even long rejected views are liable to unexpected resurrections.) In any case, even agreement of near miraculous extent would not prove any thing anyway and would amount to just a widely accepted view with widely accepted count ers to arguments against it. We may note certain alternatives to and variations on the perspectivist's thesis. There is first of all what we might call the standard position, namely, that there may be many perspectives on a given question, but all but one of them are wrong and can in principle be shown to be so. There is classical skepticism holding that there is a true view but we can't get it and wouldn't know it if we did. There are also the relatively more recent views that large philosophical questions are meaningless (as in positivism) or illusory (as in analytic philosophy). There is what we might call the existential view that there are many views and we may appropriate one according to our own free decision or freely selected standard of evaluation. There is the pragmatic view, that there are many views and many of them are of personal interest and many may indeed be considered true in varying ways and degrees and for varying purposes and persons. Then there is the view that the perspective we a ppropriate tends to become true in varying ways and degrees, at least for the subject, so that we create our world in varying ways and degrees. Finally, there is the view that we do not so much search for a view, find a view, choose a view, but rather that our views arise in us more as a consequence of our culture, temperament, or character than of our reasoning powers.

Starbucks Case Analysis

Starbucks corporation| Starbucks Corporation Vision- Founded in 1971 Starbucks vision statement is;† To establish Starbucks as the most recognized and respected coffee brand inthe  world  and  become  a  national  company  with  values  and  guidingprinciples that employee could be proud of   The vision statement clearly describes the dream or the future of the company that is to be the world’s most well known coffeehouse and also to be the most appreciated and positively graded brand by all levels of people around the world. The  company also  focuses  its  vision  to  employee  satisfactions,  so  that  the employees will be happy.It was an abstract vision that reflected the vision of the founders. Mission Their mission statement from the company profile is as follows: â€Å"Our mission is to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. † Their core competencies can b e defined as high quality coffee and products at accessible locations and affordable prices, provided a community to share in the coffee drinking experience, and variety of choices. Their mission statement includes six elements which they regard as part of their core competencies. Our Coffee It has always been, and will always be, about quality.We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done. Our Partners We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard. Our Customers When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers – even if just for a few moments.Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection. Our Stores When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life – sometimes slow and savored, sometimes faster. Always full of humanity. Our Neighborhood Every store is part of a community, and we take our responsibility to be good neighbors seriously. We want to be invited in wherever we do business.We can be a force for positive action – bringing together our partners, customers, and the community to contribute every day. Now we see that our responsibility – and our potential for good – is even larger. The world is looking to Starbucks to set the new standard, yet again. We will lead. Our Shareholders We know that as we deliver in each of these areas, we enjoy the kind of succes s that rewards our shareholders. We are fully accountable to get each of these elements right so that Starbucks – and everyone it touches – can endure and thrive Competitive advantageThe advantage a business has over its competition which allows it to reap greater profit margins, retain customers and remains sustainable is referred to as its competitive advantage. Businesses have to have some form of competitive advantage to be successful in the long run. Competitive advantage can take one of three forms that reflect basic customer values: customers want goods and services (1) better, (2) cheaper and (3) faster. These forms of competitive are known as (1) differentiation, (2) cost leadership and (3) quick response respectively.Research has proven that having some form of competitive advantage increases profitability of a firm , having two forms combined leads to highest profitability and firms that have neither form perform poorly or generate just ‘normal’ profits. Competitive advantages that are gained because the pioneer was on the first to enter a market are sometimes called ‘first movers advantages. ’ The three forms of competitive advantage are described below Differentiation Creating a unique bundle of products and/or services that will be highly valued by customers constitutes competitive advantage based on differentiation.Product features, after-sales service, desirable image, technological innovation, reputation, manufacturing consistency, status symbol are attributes that can differentiate products. Each of these features can be considered a form of quality. Differentiation allows firms to reap higher-than-typical returns because competitive rivalry maybe lessened as firms successfully distinguish themselves; brand loyal customers are less price sensitive, new entrants entering the market have to overcome the barriers to entry.However, if many firms adopt a differentiation strategy then they are all perceived a s equals and specialists operating in niche markets may be more successful at differentiation and a continuous attempt to stay ahead of customers may result in ‘gold plating’ ( the development of features which are not valued by consumers but add to the price). Successful differentiation depends on (1) understanding what customers value, (2) being uniquely able to provide that value, and (3) being able to charge a premium price for it.Cost leadership This competitive advantage requires achieving a low-cost position relative to one’s competition. Classic cost leadership strategy involves creating a no-frills product aimed at the most typical customer in a large target market. Standardization of products and services is looked for in cost leadership and targeting a large market segment for these standard products allows for mass production techniques which create greatest possible benefits from economies of scale and experience curve effects.Cost leadership address es competitive forces in the following ways; holding the low-cost position convinces rivals to hold a price war, low-cost producers are protected from customer pressures of lowering prices, because of higher margins low-cost producers are better able to withstand pressures from increasing in suppliers’ costs, barriers to entry exist for new entrants and manufacturers use price to threaten substitute products. However, cost leadership has some drawbacks namely ; cost leadership can be called an ‘all-or-nothing strategy’, cost cutting that leads to loss of desirable roduct attributes can be ruinous, it is easily duplicated by competitors, and dedication to cost cutting limits a firm’s abilities to remain competitive in other ways. Use of an effective cost leadership strategy depends on careful monitoring of a firm’s internal operations and its customers’ need. Quick response This form of competitive advantage stresses on the provision of the qu ality and cost the customer wants faster than the competition does. Quick response refers to the speed with which a new product, a product improvement, or even a managerial decision that affects the customers can be made.It is a way of looking at a firm’s flexibility. Competitive advantage can be achieved through quick response in which such as faster development of new products, customizing products, improving existing products, delivery of ordered products,, adjusting marketing efforts, answering customers’ questions. Firms with quick response can avoid head-to-head rivalry, faster forms can charge a premium pricing, faster firms encourage quick response from suppliers, and quick response deals with the threats of new entrants and substitute products by leading in innovation themselves.However it must be kept in mind, speed is not equally important to all markets or customers, speed creates stress, and speed for speed’s sake does not create competitive advanta ge. Starbucks Competitive Advantage Starbucks competitive advantage is a mixture of differentiation and quick response. Since their coffee is priced at $4 a cup; they are clearly not competing on costs here. In fact at Starbucks’ it’s the opposite. The brand image that has been created due to the strong differentiated marketing efforts, the ambience of their outlets has created a brand loyalty in Starbucks customers.They are willing to pay a premium price because they feel they are having the best coffee made with the finest quality ingredients. Starbucks achieved the first movers advantage as they were among the pioneers of coffee houses in America, also they have maintained their leadership in the market by launching new variants and varieties faster than competition does and have upgraded their menu from time to time. Their supply chain is integrated vertically and horizontally allowing for a faster response time among suppliers and with customers. They have used el ebrities to endorse their brand further enhancing their differentiation strategy. Because Starbucks has successfully differentiated itself, developed a strong brand following, has opened up outlets to cater to their target market both in U. S. A. and globally, has always strived to serve its customers faster, and focused on innovation, it is able to reap higher-than-average returns. They have also been quick in realizing their failures as the case mentions them closing down stores that were not functioning. Thus this shows that the corporation is quite flexible in its operating decisions.Starbucks Corporate Strategy- how they have used it to create a successful business model The corporate strategy for Starbucks was an expansion strategy based on opening new outlets in U. S. and expanding overseas. Operations: They looked for diversification and vertical and horizontal integration to maximize control over their supply chain and maintain satisfied customers. They launched new product s and variants to maintain their leadership in the market. A differentiation and quick response strategy is used. HR: Starbucks looks for diversity in its employees.They employ people from various backgrounds and give them independence and freedom to make decisions. This has enabled Starbucks to address customers faster and reduced their response time. Also hiring people form diversified backgrounds helps them in their expansion strategy and improves their communication in new countries of expansion. Marketing: Their marketing has always been coffee centric. They have strived to create a strong brand identity and brand loyalty. Starbucks is not just about coffee. It is about providing that experience of comfort, socializing and happiness. This is what they build on.The firm has been successful in maintaining premium pricing because of the creation of a brand image that allows for it. Finance: The expansions have been sensible and not based on intangible goodwill or long term debts. The firm has invested a lot in fixed assets and their debt to asset ratio is low. The management started closing down low operational stores; instead of letting they operate at losses, indicating the management’s concentration on financial efficiency and having good financial ratios. The following strategies have enabled Starbucks to maximize its reach to its consumers by opening up different outlets globally hich have lead to market development and increased profitability. Starbucks expansions have all been well financed and done sensibly. Also their quickness to act in areas where they were reporting losses further shows that their Corporate strategy has lead to successful business development model. The product variety offered at Starbucks has enabled it to remain market leader thus showing that R&D efforts are paying off. The exceptional customer service due to the employment of a diversified labor force has facilitated business expansion and increased the size of the pie for Starbucks.Starbucks thus has transformed the image of ‘coffee. ’ The strong brand loyalty supported by a well managed expansion plan which allows them to be present where their customers want them has made the business a success. Need analysis A need analysis is the process of identifying what the users need and want. It related to the goals, inspirations and objectives of the users. Following shows the factors that contribute to customer satisfaction at Starbucks. Thus Starbucks needs to discover what consumers want regarding the product quality, price and service.Following are SWOT ands PESTLE analysis of Starbucks which give a clearer picture of the strengths and environment within which the firm is operating. SWOT Analysis Strengths †¢ Brand recognition and consumer loyalty †¢ Diverse product portfolio catering to all tastes and ages, including non? coffee beverages and food items †¢ Excellent customer service and the value of the Starbucks exper ience †¢ Licensing relationships with top? brands such as Pepsi? Cola and Kraft that minimize costs and leverage the strategic advantages of those companiesxviii †¢ Strong employee relationships Economies of scale providing superior distribution networks and supplier power †¢ Primly? located retail stores †¢ Positive image attributed to socialresponsibility Weaknesses †¢ Pay 23% more for coffee than market prices †¢ Saturation of the market diminishes long? term growth prospects †¢ No monetary switching costs for consumers †¢ Negative large corporation image †¢ Potential limitations of international expansion due to cultural clashes with American coffee experiences. Opportunities †¢ Have the ability to reduce premiums paid for coffee Room forinternational expansion (78% ofrevenues came from the United States in fiscal 2007 and international same? store sales growth is strong)xix †¢ Room to compete on multiple fronts including qu ality and price †¢ Increase licensing relationships to further utilize brand strength to capture profits at little cost to the company Threats †¢ Increasing coffee and dairy prices †¢ Intense competition in the specialty coffee beverage business †¢ Unfavorable economic conditions that lowerthe demand for expensive beverages †¢ Community resistance to store expansion The possibility that the demand for specialty coffee is a fad †¢ Diverging from the Starbucks experience †¢ Further diversification of fast food restaurants that cuts into market share. PESTLE ANALYSIS The PESTLE analysis of Starbucks. Political: Taxation policy High taxation imposed on farmers in those countries producing the coffee bean will usually mean Starbucks pay a higher price for the coffee they purchase. Any fluctuations in taxation levels in the industry are almost certainly ultimately passed on to the consumer Deregulation A decade ago, the USA pulled out of the ICA (interna tional Coffee Agreement) hat set export quotas for producing nations and kept the price of coffee fairly stable. Coffee quotas and  price controls ended. Since the deregulation farmers have suffered and their earnings have dropped. Many have struggled to make a living so have given up. International trade regulations/tariffs – Trade issues will affect Starbucks predominantly when exporting and importing goods. When another country's government imposes a tariff it not only results in an efficiency loss for Starbucks but large income transfers can become inconsistent with equity. This extra charge can turn a bargain into a rip-off.Also, since 9/11, trade relations have been adversely affected between the USA and some other countries. International  stability The international economy must be brought into  consideration as it can affect Starbucks' sales and markets. The aftermath of 9/11 was an example of an economic downturn that affected the world market. If the world ma rket is in a slump it is not usually the ideal time for a  business to look at grand expansion. Employment law A reduction in licensing and permit costs in those countries producing the coffee bean for  Starbucks would lower production costs for farmers.This saving would in turn be passed on to the purchaser. Economic: * Interest rates – A rise in interest rates means investment and expansion plans are put off resulting in falling sales for Starbucks and their suppliers. Also mortgage repayments rise so consumers have less disposable income to spend on luxury  products such as coffee. Low interest rates should have the opposite effect. * Economic Growth – If growth is low in the nation of location of Starbucks then sales may also fall. Consumer incomes tend to fall in periods of negative growth leaving less disposable income.Consumer confidence in products can also fall if the economic ‘mood' is low* Inflation rates – Inflation is a condition of incr easing prices. It is measured using the Retail Price Index (RPI) in the UK. Business costs will rise for Starbucks through inflation, as will shoe-leather costs as they shop around for new ‘best prices' of  materials, menu costs will rise as Starbucks have to create new price lists. Also, uncertainty is created when making decisions not least because inflation redistributes money from lenders to borrowers. Competitors pricing – Competitive pricing from competitors can start a price war for  Starbucks that can drive down profits and profit margins as they attempt to increase, or at least maintain, their share of the market. * Globalisation – Globalisation of the coffee market has meant farmers of the bean now earn less money than they used to. This can result in a decrease of people willing to do it for a living, which will mean a decrease in coffee produced, resulting in a drop in Starbucks supply levels and probably profits. * Exchange rates – Starbuc ks are affected by exchange rates when dealing with international trade.If the value of the currency falls in the country of a coffee supplier  this enables Starbucks to get more for their $ or L when importing the goods to their  country. This saving can be passed along to the customer. Exchange rates are forever  changing throughout the world in today's market. Social: Population demographics – Population demographics are a very important factor for  Starbucks as they identify what parts of the population they need to aim their products at or which parts of the population they need to encourage to visit their stores more than they presently do.Looking at the table in the case study demonstrating the  percentage of the age groups that drink coffee or specialty coffee it can be seen that the age groups that Starbucks should be aiming their marketing at are the people  between 35 and 54. They should consider targeting the 18-24 age group as they drink  the least amount comparatively and by encouraging this segment to choose Starbucks coffee now, there is a chance they may continue to drink it long into the future.Income distribution – Where income is distributed is another factor that Starbucks should look at as this also demonstrates the ideal place to aim their marketing or to locate their stores. Coffee is more of a luxury product so it is those people/places with the most amount of disposable income to spend that should be targeted the most intensely. * Attitude to work – Starbucks would not want to locate to an area where the local  population have a poor attitude to work. Recruitment would be difficult, training arduous, and staff turnover would be high. Attitudes to work are important in other  ways.A large number of workers in large cities now go out for their lunch rather than use an internal canteen. Starbucks can use this to their advantage and promote the shop as a place where people can meet up and so it will mean that they will get alarger amount of people in their stores at this time of the day. * Standard of education/skills – When Starbucks are deciding upon new premises they must look at the standards of education and skills locally. They must be sure there are  people who live there with sufficient skills to ensure successful operation of the  business, or at least the potential to learn that comes with a good education. Working conditions/safety – Those people with the most disposable income, e. g. young single professionals etc, will be accustomed to high standards. Starbucks must ensure its shops are clean and comfortable, service is of the highest order and health and safety issues are fully addressed * Location – Transport needs to the premises must be considered for both staff and customers. Easy access is vital to ensure there is no excuse for staff to arrive late or  for customers not to visit. Age distribution – Research shows the average age of the population is getting older  and birth rates are stagnating. Starbucks is presently aiming it's product at young  people but maybe these views will change in the long-term as the market proportion for young people diminishes. The most profitable way forward may be to widen their  target market despite the risk of alienating present customers. * Health consciousness – Good health and foodstuffs associated with healthy living are important I today's market place, as this is a trend that is occurring at the moment in western societies.Starbucks can use this information when deciding the additional  products to sell, as well as coffee, as a large number of their customers are looking for  healthy alternatives to cakes and biscuits, which have been associated with coffee in the past. Technological: * IT development – Starbucks is always looking to develop and improve its Internet facilities. Starbucks launched its first-generation e-commerce Web site in 1998. In late1999, Starbucks decided the site needed a major upgrade to enable new functionality and prepare for long-term growth.To achieve these goals, Starbucks upgraded to Microsoft Commerce Server 2000, one of the key Microsoft . NET Enterprise Servers. As a result, scalability and performance have improved, and the company now has the tools it needs to profile and target customers, analyze site data, and deliver new features to the market in the shortest time possible. * New materials and processes – Developments in the technology of coffee making machines and the computers that Starbucks use to run their cash registers will enable their staff to work more quickly and efficiently.This will result in customers being served quicker and create the potential to serve more customers in a day. This will  prevent customers from having to wait around for long periods thus improving customer relations along with increasing the customer base. * Software upgrades – In th e short-term, Starbucks must identify the most efficient software upgrades to use to keep up with the competition. This applies to the improving the accessibility of their website (www. starbucks. com) and also improving the speed and quality of the service provided on the shop floor. Research and Development activity – As a multi-national business empire, Starbucks has the budget and the resources to have a cutting-edge R+D department. The website is very accessible, the facilities are state of the art but more importantly new ideas are consistently being tried in terms of a constantly updating menu. * Rate of technological change – The rate of technological change in the current world market is high, much higher than, say, thirty years ago. Much of this is down to the Internet and the speed with which information can be communicated around the globe.Starbucks will need to invest heavily just to stand still in their ever expanding and developing market, and even more so to try to stay ahead of competitors. Legal: * Trade and product restrictions – Starbucks need to be aware of the trade laws in the various countries they occupy and do business with. They need to ensure they are not in violation of e. g. , religious laws. Also, certain countries impose a tariff that has to be  paid when goods are imported/exported so this must be taken into account. * Employment law – Each country has varying employment laws.Some may have aSabbath day, diwali,some may have a limit on the number of hours an employee may work  Ã‚  per week, all will have varying levels of minimum wage. Starbucks should consider  these factors when deciding on relocation. * Health and Safety regulations – Starbucks may find these regulations are not as stringent or well enforced in certain countries. It would be wise though to enforce universally high standard of health and safety throughout all it's shops to maintain a good global image and ensure all law s are abided by.Also, by not maintaining high standards they will be liable for a large amount of civil cases as it is a legal requirement for them to enable that their staff and customers are safe when they are intheir stores. * Monopolies commission – If Starbucks consider expanding their operations further  to control an even larger percentage of the market than they already have they will have to consider the possibility of breaking monopolies legislation as they may have a share of the market that is too large. This would mean that they would have unfair  advantage over other companies in the same market.This would mean that they could  benefit from economies of scale and would also be able to charge prices that were not competitive in the market and get away with it due to the lack of competition. * Land use – Starbucks may have to abide by local planning regulations when building shops or altering purchased sites, as certain areas of land may be protected or  unsuitable. All matters would be addressed by the local government. Environmental: Pollution problems – Starbucks customers create a lot of waste as they often leave the shop with their cup of coffee and then dispose of it in the street.The packaging for  this cup must be carefully considered to make it as biologically degradable as  possible. Certain other materials can be very harmful to the natural environment. * Planning permissions – Planning permission may not be granted if Starbucks wish to  build in an area that could be harmful to the environment. The land may be protected. * Work disposal – Starbucks need to carefully consider the methods in which they dispose of their waste as there are strict laws in most countries to ensure a firm trading in their country disposes of the waste that is created in their business in a specific and efficient way.If they do not follow these laws they may find themselves being sanctioned, which not only affect s them financially but also tarnishes the reputation of  the brand name, as most of the waste created will bear the logo of Starbucks. * Environmental pressure groups – Starbucks should be aware of the physical and influential power of groups such as Greenpeace and Friends of the Earth. Any violation of animal or environmental rights by a company is usually followed by a swift and attention-drawing protest from one of the groups.Brand image and customer bases are often irreconcilably tarnished due to the actions of these groups Porter’s five forces Barriers to Entry: Medium-High –  Low  capital requirement:  It can be varied depend  on  the location, but  it would be safe to say  coffee industry   still  requires low capital compared to other industries. –  Little  product  differentiation: It is difficult to establish a certain unique flavor for coffee. – can be offered at restaurants which normally don’t serve cof fee as a beverage; this will allow for even lesser investment.Threat of Substitutes: High – Soda, fresh fruit juice, healthy juice for drink and tea are all direct substitutes for coffee. – Alcohol drink- beer, wine,  cocktail,  and more can be indirect substitutes. ( Alcohol drinks will be sold in only a few selected places,  so it is  too early  to  get rid of alcohol drinks in the threat of substitution part. ) Bargaining power of Buyer: Medium-high – Even though the price goes up, the buyers who like only  Starbucks would still come. The brand has generated enormous brand loyalty.   Buyers can  buy their coffee from various  places: Starbucks has their stores  all over the nation, so as other major companies do. Buyers have a lot of substitutes to choose from. Supplier Power: Low-Medium – Starbucks is a global coffee chain and many suppliers are eager to work with them. The company has successfully established vertical integratio n to make suppliers loyal to its supply chain. –  It can be problematic if  a certain product  suppliers raise the price of their product, such as green tea powder or coffee bean.Although Starbucks decided to  change their suppliers because it still takes some time to inform  to the customer and price changes will be inevitable. Industry Rivalry: High –  Many companies: Coffee Bean, Mcdonald's, Dunkin Donuts, and local  cafe. –  Also; McDonald’s had started an advertising attack aimed directly at Starbuck’s saying ‘$4 coffee is dumb. ’Thus; rivalry was high. –  Many people started to look for  more  healthy  and fresh  juice instead of coffee, so there is little chance that demand is growing at the same rate as it was earlier.

Cancer Cancer And Cancer - 1439 Words

Cancer starts when cells begin to grow out of control. Cells in any part of the body can become cancerous and they can spread to other areas of the body. â€Å"Breast cancer is a malignant tumor that starts in the cells of the breast. A malignant tumor is a group of cancer cells that can grow into surrounding tissues or spread to distant areas of the body. (â€Å"What is Breast Cancer?†)† Breast cancer stages range from 0 to 4. Stages 0 and 1 are the earliest detection of cancer development, the cancer cells are confined to one area. Stage 2 and 2A is evidence that the cancer has begun to grow or spread. Stages 3 A, B and C is considered to be advanced cancer that shows the cancer entering surrounding tissues near the breast. The last stage is stage 4 and it shows that cancer has spread beyond the breast to other areas of the body. 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