New Energy Drink Assignment Example | Topics and Well Written Essays - 2750 words

New Energy Drink - Assignment Example g will be utilized to figure out what ought to be the breakeven point in units just as in deals so the business can achieve least income of zero benefit. Utilizing the data identified with creation and appropriation, certain estimations will be finished. This will require the utilization of money financial plan, estimated salary proclamation and guage monetary record will be created. An arrangement is additionally surrounded to build up a consortium of modest number of speculators keen on building up another caffeinated drink, wherein a conversation identified with money related issues will be done. Consequently in the wake of directing the necessary money related investigation, an appropriately arranged ‘pitch’ of the task will be created. It will expect to pass on the necessary data to the likely financial specialists in a deliberate way and persuade them for contributing. The planned beverage is set to join the best of a wellbeing and a soda pop. Not exclusively will it have the renewing nature of a soda however will likewise address the vitality necessities of its shoppers. This caffeinated drink will be accessible in a prepared to-drink structure. This beverage is named ‘My Drink’ trying to bring each segment of the populace under its overlap. To keep the item eco-accommodating, it will be accessible in tetra gets made together of bio-degradable material. At first just 250ml tetra packs will be propelled in the market however later on sizes changing from 400ml, 1000ml and 1500ml will be propelled by the interest. In spite of the fact that the item will presently be presented in a solitary mainland flavor, in future the organization may present certain flavors like orange, lemon, vanilla, strawberry, chocolate, blend products of the soil on. The organization has chosen to take the assistance of an appropriating firm until it has increased relevant information about the market tasks. This is on the grounds that putting resources into creating individual appropriation, in the underlying days, isn't just hazardous yet in addition brings about high speculation cost. It has likewise been chosen to employ a distributer who will take the

Archaeology and the Trojan War Essay -- Archaeology Ancient World Hist

Prehistoric studies and the Trojan War â€Å"†¦ he [Heinrich Schliemann] discovered layers of vestiges †¦ and two bore indisputable indications of brutal decimation. One of these layers, the seventh as per later excavators, was no uncertainty the city of Priam and Hector. The accuracy of the Homeric story had been exhibited archaeologically.† - M.I. Finley, the World of Odysseus Presentation The Trojan War and its characters are definite in the works of Homer, Vergil, Dante and numerous others. It is a fantastical story of 10 years in length attack of a ground-breaking city by a monstrous container hellenic power. Be that as it may, despite the fact that it has end up being such a rich wellspring of motivation for essayists, artists and craftsmen since forever, it is discussed whether it really occurred. Heinrich Schliemann broadly said â€Å"I have looked on the substance of Agamemnon.† on finding tombs with the assemblages of Mycenaean chieftains in Turkey. The German specialist turned-classicist professed to have found the city of Troy at the slope currently called Hisarlik †around three miles from the Dardanelles. In any case, his cases are as yet questioned today. Before handling the topic of whether the Trojan War really happened, we should ask in what structure. What precisely do we mean by â€Å"the Trojan War†? There is no complete form of the occasions in the war, as our insight into it originates from a horde various sources. At that point we ought to consider Schliemann’s disclosures, and the other archeological proof for the Trojan War. At long last, after we have characterized â€Å"Trojan War† in setting of paleontology and chronicled reality, we should then reach inferences about the degree to which prehistoric studies demonstrates its recorded legitimacy. I don't get our meaning by the â€Å"Trojan War†? The principal source that rings a bell is the works of Homer †the Iliad and the Odyssey. The two legends are viewed as standard. In any case, Heroditus’ Histories quickly detail the significant occasions of the war, and transfers them as though they were chronicled reality. Heroditus’ record of the war contrasts somewhat from Homer’s rendition, and he is very much aware of this. In the wake of relating the story of Alexander (Paris) taking away Helen, Heroditus composes: â€Å"Such was the story let me know by the ministers concerning the appearance of Helen at the court of Proteus. I can't help suspecting that Homer was familiar with this story , and keeping in mind that ignoring it , in light of the fact that he thought it less adjusted for courageous poe... ..., or even â€Å"Did the adaptation of occasions Heroditus portrays have any establishment in truth?†. On the off chance that the presence of Troy itself is questionable, at that point the trustworthiness of the war must be all the more so. List of sources Antiquated Sources: -      Homer, the Aeneid, deciphered by Samuel Butler, taken from www.patroclos.de -      Homer, the Aeneid, deciphered by T.E. Lawrence (Wordsworth, 1995) -      Homer, the Odyssey, deciphered by T.E. Lawrence (Wordsworth, 1995) -      Heroditus, Histories, deciphered by George Rawlinson (Wordsworth, 1996) Present day Sources: -      Boardman, Griffin and Murray, the Oxford History of the Classical World (Oxford University Press, 1986) -      Finley, M. I., the World of Odysseus, (New York: The Viking Press, 1978) -      Finley, M. I., Ancient History †Evidence and Models, (Penguin, 1985) -      Alan B. Lloyd (supervisor), Battle in Antiquity (Duckworth, 1996) -      Heinrich Schliemann’s Telegrams taken from www.archaeology.org -      Wolf-Dietrich Niemeier talk with remove from Hershel Shanks, taken from www.bib-arch.org -      Additional inquire about taken from Ian Johnston’s website page www.mala.bc.ca/~johnstoi, and furthermore http://devlab.dartmouth.edu/history

Writing and Proofreading Essays

Writing and Proofreading EssaysProper essay writing can be an elusive pursuit, especially for those who are not accustomed to the job. While some writers may write better when they first start out, as soon as their confidence is shaken, they begin to panic and over think things. It is important to keep in mind that there is no such thing as a 'perfect' essay. Writing is a personal experience and a process in which you and your fellow writers share.The key to success is to have the right attitude and approach to writing. Use your imagination and do not be afraid to try different things. For example, write in the present tense as if it were the last day of your life. Don't feel any pressure to follow a well-planned outline.To help you get started, start your title page with the question, 'What is this essay all about?' Always take the time to develop an outline for your essay. Begin with an introduction paragraph, that will contain basic information about the essay topic and the author .The introduction can include a short description of the topic of the essay. Then it is time to present some background information and answer the central question in the introduction paragraph. This part is a great place to review any concepts you have discussed in the introduction. By the end of the first paragraph, you should have developed an outline of the essay.The main body of the essay is composed of the thesis statement and the conclusion. It is often very tempting to write your conclusion as the second paragraph of the essay. But, remember that the conclusion is a point in time that you would like to remember.The main idea of the essay should also contain a strong argument or topic. In addition, the thesis statement should be directly related to the main idea. You will be writing about events or facts that happened in the past so avoid using an argument that you have developed to support an idea that you are trying to make current in the reader's mind.You should also do so me revision of your paper after every revision. Sometimes you may forget something that you wrote in your paper. Also, you may make mistakes. Review your paper after each revision and see if it still makes sense.Many students do not realize that the use of grammar is crucial to having good grades in class. That is why you should always proofread your work before you submit it. With the right research you will find that proper essay writing is not so difficult once you understand how to set the correct tone and pace.

The Authors Character in A Good Man is Hard to Find by...

â€Å"A Good Man is Hard to Find† is a short story written by Flannery O’ Connor. O’Connor was an American writer whose writings always incorporated humor into a sad or devastating situation. Her collections include 31 short stories, two novels, and a couple of letters and speeches. O’Connor is most famous for her short story works. In numerous works of her, her conscious craftsmanship was revealed and also the devoted role that Roman Catholicism plays in her life (Flannery) O’ Connor was born the only child to her parents in Savannah, Georgia. Her father was a real estate agent and her mother was born into a very prominent family. When O’ Connor was twelve years old, her family moved back to her mothers hometown of Milledgeville, GA where†¦show more content†¦She reiterates the fact quite a bit through the duration of the story. The Misfit compares himself to Jesus. As The Misfit previously stated in the story, when he was growing up he was the type of child who had to know everything and exactly how it functioned and worked. He says that because he can not know whether Jesus did what people claim for him has made him (the Misfit) like he is. â€Å"The desire of the Misfit to know everything and his inability to confirm or deny Jesus story has created an intractable dilemma that consumes him (Woodiwis).† In the religious drama within the story, the Misfit acts as both Christ and anti-Christ figure. He compares himself to Christ, saying, It was the same case with Him as me, except He hadnt committed any crime and they could prove I had committed one because they had the papers on me ( ). Even though the Misfit cannot dedicate himself to either path, he recognizes that there are really only two alternatives in life: belief and disbelief. Inattention and indifference to faith, the position held by most of the characters in A Good Man Is Hard to Find and many in OConnors other stories, are unacceptable and ultimately untenable responses. There can be no question, however, of OConnors intent. The Misfit and his gun create a moment of redemption for the grandmother, albeit against her will. Despite his amorality, his actions extract from her a recognition born out ofShow MoreRelatedEssay On A Good Man Is Hard To Find851 Words   |  4 Pages Review on a story â€Å"A Good Man is Hard to Find† In the story â€Å"A Good Man is Hard to Find† by Flannery 0’Connor, a southern family planning a road trip to Florida portrays the hypocrisy of the society through their actions and dialogues. Major question that rose in the story was what is considered good and how there aren’t enough good men left in the world.† A social science major with several courses in English, O’Connor is remembered by her classmates as obviously gifted but extremely shy. HerRead MoreReview Of Flannery O Connor1228 Words   |  5 Pagesauthor of two novels and multiple classic short stories, Flannery O’Connor is widely regarded as one of the greatest fiction writers in American literature. However, as a Southern and devoutly Christian author in the 1950s, O’Connor was often criticized for the religious content and â€Å"grotesque† characters often incorporated into her works. They were considered too â€Å"brutal†, too â€Å"sarcastic.† (The Habit of Being: Letters of Flannery O Connor). O’Connor begged to differ. Through her essay, â€Å"Some AspectsRead MoreLiterary Elements found in Flannery O ´Connor ´s Story: A Good Man Is Hard to Find810 Words   |  3 Pagesto comprehend the perspectives of the author’s understanding toward an incident that one might experience. For instance in Flannery O’Connor’s short story, she uses many literary elements to express her views over most of her stories. O’Connor expresses her views in her short story, â€Å"A Good Man Is Hard to Find† by using the literary elements of point of view, irony, and setting. O’Connor first expresses her views in her short story, â€Å"A Good Man Is Hard to Find† by using the literary element of pointRead MoreEssay On The Misfit And The Grandmother1359 Words   |  6 Pagesargues that the Misfit and the Grandmother of Flannery O’Connor’s â€Å"A Good Man is Hard To Find† are ultimately the same character. Specifically, that the Misfit is the more evolved version of the Grandmother. Additionally, the article focuses on weakening of the Grandmother’s character on both the part of the reader, and of Flannery O’Connor herself; noting that it is purposeless to view the Grandmothers character superficially, as her true character lies beneath the mask of southern charm. The articleRead MoreComparing O Connor s A Good Man Is Hard911 Words   |  4 PagesDissecting O’Connor’s â€Å"A Good Man is Hard to Find† Flannery O’Connor’s short story, â€Å"A Good Man is Hard to Find†, centers around a vacationing family of six. When the father of the household attempts to take the family to Florida, their trip is derailed by the grandmother’s desire to visit her childhood home. The grandmother leads the father down a back road in a heavily wooded area and at one point a wrong turn is taken and the family ends up crashing into an isolated ditch. After attemptingRead MoreQuestions for Critical Thinking1690 Words   |  7 PagesQuestions for Critical Thinking A Good Man Is Hard to Find by Flannery O’Connor 1) What is the grandmother’s attitude toward the South as opposed to the rest of her family’s attitude, particularly her grandson’s? How do you account for the difference? In the short story â€Å"A Good Man is Hard to Find,† the grandmother’s attitude toward the South is that the â€Å"old South† was better than the current South. For example, in paragraph 14, John Wesley, the grandson, states â€Å"Let’s go through GeorgiaRead MoreTheme Of The Story A Good Man Is Hard To Find1097 Words   |  5 Pagesstory, â€Å"A Good Man Is Hard to Find,† a grandmother goes on vacation in Florida with her son and his family. She is wary of an escaped criminal who may possibly be there, but no one takes her worry into consideration. The family eventually comes face to face with the criminal and lose their lives because of it. In â€Å"A Worn Path,† an elderly woman begins a long and tiresome journey in an effort to reach a town to acquire medicine for her sick grandson. The stories â€Å"A Good Man Is Hard to Find,† writtenRead MoreThe Grotesque Pursue Of Goodness2189 Words   |  9 PagesNorris ENGL 290 5 May 2016 The Grotesque Pursue of Goodness in A Good Man is Hard to Find by Flannery O’Connor â€Å"The great advantage of being a Southern writer is that we don’t have to go anywhere to look for manners; bad or good, we’ve got them in abundance. We in the South live in a society that is rich in contradiction, rich in irony, rich in contrast, and particularly rich in its speech† (Flannery O’Connor). Mary Flannery O’Connor was born in 1925 in a Catholic family in the south of the UnitedRead MoreEssay about flannery oconner: queen of irony1743 Words   |  7 Pages Flannery O’Connor: Queen of Irony The literary rebellion, known as realism, established itself in American writing as a direct response to the age of American romanticism’s sentimental and sensationalist prose. As the dominance of New England’s literary culture waned â€Å"a host of new writers appeared, among them Bret Harte, William Dean Howells, and Mark Twain, whose background and training, unlike those of the older generation they displaced, were middle-class and journalistic rather than genteelRead MoreThe Grotesque Of Grace And Its Implications On Morality1695 Words   |  7 PagesRai LIT 2020 11 March 2014 The Grotesque in Grace and its Implications on Morality Flannery O’Connor has been claimed an important figure and a social critic of the South for many years before and after her death. Her prose deals with questions of morality through reflections of her Roman Catholic faith. Correspondingly, her short stories and novels put the protagonists in shocking trials of God through characters or conflicts portrayed as, according to Davis J. Leigh, â€Å"distorted or exaggerated,†

Negative Consequences Of Foreign Direct Investment

NAFTA supporters, on the other hand, argue that foreign direct investment in Mexico has been higher after NAFTA, but it must be recognised that it also has had a number of negative consequences. One of the most important negative consequences is that the flow of foreign investment has been focused on the creation of companies producing goods or services directly exported to the USA (maquiladoras) (Ruiz 2015: 44). Investment flows have been generated primarily to produce goods or services for the USA; this type of foreign direct investment is vertically integrated, it is fuelled by low trade costs given the unskilled and cheap workforce, it is a type of investment in which developed countries use developing countries as a re-export platform or as leverage in the search for new markets, creating economic dependency relationships (Calderon and Hernandez 2011: 114-116). Another consequence is that domestic industry has deteriorated by imported inputs and competition from foreign direct i nvestment, due to the displacement of local companies that were unable to compete with multinational corporations, and thus generating job loss. Another important negative consequence to consider is that the money of foreign investment has led directly to the wealthiest regions of Mexico, since they are the ones who have the education, skilled labour, transport infrastructure and necessary communications to facilitate product export to the USA, which has intensified disparities and inequalitiesShow MoreRelatedGlobalization Essay1452 Words   |  6 PagesThe implications of globalization are greatly felt in every part of the world. One of its effects is encouraging the movement of financial capital, trade, and direct and foreign investments. This refers to the economic exchange of goods and services internationally and international financial flows. (Carr and Chen, 2001). Through the perspective of an optimistic globalist, trade has brought an increase in the volume of trade, wherea s, pessimistic globalist suggests that globalization on the worldRead MoreRussian Federation and United Kingdom: Comparison of Economy1660 Words   |  7 Pageslend to foreign countries, while negative NX shows that the country borrowed from them. Besides, in open economy NX equals to the difference between Saving and Investment, as there is a close relationship between financial and goods market. Net capital outflow or net foreign investment is also equal to S-I. Therefore, we can say that Net Capital Outflow=Trade Balance. Positive NX means trade surplus when there is more export than import, in this case the country is net lender. Negative NX meansRead MoreInternational Capital Flow Directly Depends On A Country s Financial Situation And Level Of Development1741 Words   |  7 Pagesthe main source of FDI, it is well known. But foreign firms that have been purchased through the stock market are in desperate need of financial services. This way, as a prospective investor makes decisions regarding his investments, he will be able to take into account the country’s financial development and banking development, and determine how such factors will ultimately affect their investments According to Campa (1993) as with all investments, there is always a potential risk involved. HoweverRead MoreWhat Does Economist Say About Export Oriented Economy? Essay901 Words   |  4 Pageshas instead evolved to fit changing global circumstances and to fit individual country conditions. This evolution can be thought of as involving four stages. What-does-economist-say-about-export-oriented-economy. They are deeply dependent on the foreign economy for doing well so the economy at home can perform. GDP GROWTH (%) Japan’s growth trend: 2010 – 4.65% - With increase in Global growth rate Japan also started recovery from 2008 financial crisis credited to rise in International Demand 2011Read MoreThe Second Key Driver Manipulating The Spread Of Globalization894 Words   |  4 PagesThe second key driver manipulating the spread of globalization is technological change. The reductions of international trade and investment barriers made globalization of markets and globalization of production a theoretical possibility; technological change made it a visible reality (Hill, Cronk, Wickramasekera, 2014). Over the years, there has been major technological development. There are three major technological advancements, include microprocessors and telecommunications, the internet andRead MoreThe World Trade Organization s Agenda And Implementation Of Its Agreements1079 Words   |  5 Pagesexamining the consequences of foreign direct investment, the dispute settlement process, tariff escalation and the TRIPS agreement, this paper will provide a better understanding of how the World Trade Organization has hindered the development of developing states. In theory, developing states have the numbers to influence the agenda; however they have never been able to use this to their advantage due to their increasing dependence on developed states in terms of import s, exports, aid and foreign directRead MoreThe Inflow Of Foreign Direct Investment In Indonesia1260 Words   |  6 PagesAnalysis The inflow of Foreign Direct Investment to Indonesia is very dynamic featured with upward and downward trend interchangeably. Since 1981 FDI ratio to Indonesian GDP is relatively low range from 0 – 3% of Indonesian GDP. But the number of FDI could be regarded as the signal of Indonesian economic recovery and investor confidence of the country. Historically, Indonesian FDI rose significantly in second phase of Soeharto era from 1981 to 1996 but then drastically down as the effect of AsiaRead MoreImpact of Globalization on Indian Economy1572 Words   |  7 Pagesstudy of globalization is particularly important for a developing nation like India where it has led to a tremendous growth. In 1991, the Indian economy faced a huge cash crunch consisting of high inflation, high and unsustainable fiscal deficit. The foreign exchange crunch of 1991 led India to open up its economy towards other nations. The concurrent processes of liberalization, privatization and globalisation has been going on since 7 then. Major measures initiated as a part of the liberalizationRead MoreThe Relationship Between Exchange Rate And Foreign Direct Investment Of China2119 Words   |  9 PagesInvestigation of Gravity Model Relationship between Exchange rate and Foreign Direct Investment of China Junshan Chen Introduction The report bases on the theories of relative cost of production and the relative wealth effect analyzes the potential impact caused by exchange rate upon foreign direct investment. The target country selected is China; while the research period is identified as 1980 to 2012. In order to undertake the empirical study, the gravity model is referred to when establish theRead MoreTrade Blocks And Its Effects On Business And People Of Mexico1648 Words   |  7 Pagesbinding themselves in friendship and cooperation. The Gulf Cooperation Council (GCC), representing six countries: Saudi Arabia, Kuwait, Bahrain, the United Arab Emirates, Oman and Qatar, was set up for bordering Persian Gulf in Southwest Asia. Its foreign assets had been accumulated approximately $1.8 trillion at the end of 2008 which was equal to 13% of American economy since GCC constrains almost half of world’s known oil reserves. The purpose of WTO, an international organization, which comprises

Breast Cancer The Cancer Essay - 1722 Words

On Saturday, December 17, 2016, Janee Cornett wrote: To acknowledge the health beings of a women is quite scary knowing that in about 1 in 8 women in the U.S will develop breast cancer. By this year of 2016 going into 2017 there will approximately be 246,660 cases found. The 20th century is described to be the cancer century. One main cancer I wanted to talk about that has my full attention was breast cancer. The important ways of looking at breast cancer as a tremendous problem is because we are losing our women to this disease. Categorizing the main issues to give clarification for those who know of it but know little knowledge or have no knowledge. Based on the information in my research I have supporting details for the definition of breast cancer, the treatments and cures for breast cancer, how things would be different without treatments , the causes and effects, stages, the breast cancer awareness month etc. However, around the world there are a ton of women affected by Breast cancers in the United States without signs and clues they will or have the cancer. Younger women don t think they will eventually get cancer. An interesting fact I have is that women under 40 are prone to be diagnosed with breast cancer. It can happen at any age group. Per statistics about 7% of women under 40 get breast cancer. Getting older in age the risk factors increase. However, breast cancer can occur at whatever age that s why it is important to pay close attention to the RiskShow MoreRelatedBreast Cancer : Cancer And Cancer Essay1433 Words   |  6 PagesBreast cancer is a carcinoma that develops due to malignant cells in the breast tissue. Cancerous cells are more likely to produce in the milk-producing ducts and the glands, ductal carcinoma, but in rare cases, breast cancer can develop in the stromal, fatty, tissues or surrounding lymph nodes, especially in the underarm (Breast Cancer). For women, breast cancer is the most commonly diagnosed cancer and the 2nd leading cause of cancer death – behind skin cancer. While treatment or surgeries canRea d MoreBreast Cancer : Cancer And Cancer1346 Words   |  6 Pagesinternational symbol for breast cancer support and awareness. Breast cancer knows neither racial boundaries nor age restrictions. Females of all ages and ethnicities can develop breast cancer and it is the leading most common cancer among women. Calling attention to this often fatal disease is important by supporting its victims, families and friends of victims, as well as raising funds for breast cancer research. Though males are not immune from developing a breast cancer, for the purposes of thisRead MoreBreast Cancer : Cancer And Cancer Essay1711 Words   |  7 Pagesacknowledge the health beings of a women is quite scary knowing that in about 1 in 8 women in the U.S will develop breast cancer. By this year of 2016 going into 2017 there will approximately be 246,660 cases found. The 20th century is described to be the cancer century. One main cancer I wanted to talk about that has my full attention was breast cancer. The important ways of looking at breast cancer as a tremendous problem is because we are losing our women to this disease. Categorizing the main issues toRead MoreBreast Cancer : Cancer And Cancer946 Words   |  4 PagesSkylar Steinman Period 6 Ms. Jobsz 12 February , 2016 Breast Cancer It is commonly known that Breast Cancer is one of the most insidious diseases that mankind has had to deal with. With the discovery of the BRCA1( BReast Cancer gene one) and BRCA2 (BReast Cancer gene two) genes, breast cancer can be detected with a great amount of certainty on a genetic level in some women and men. 40,000 women and men die of breast cancer each year. Knowing this it is very important to try to detect the mutationRead MoreBreast Cancer : Cancer And Cancer981 Words   |  4 PagesThe Grand Rounds Research Project: Breast Cancer To hear you have breast cancer can be a very shocking thing. â€Å"Besides skin cancer, breast cancer is the most common cancer diagnosed among women in America as of 2015† (breastcancer,2015). First step is to know what you are dealing with when your doctor believes you have cancer, you will want to know what cancer is and how your doctor can detect it. Next your doctor will go over different stages of breast cancer that will help come to a conclusionRead MoreBreast Cancer : Cancer And Cancer1530 Words   |  7 Pagesâ€Å"Cancer† is the name for a group of diseases that start in the body at the cellular level. Even though there are many different kinds of cancer, they all begin with abnormal cell growth with the potential to invade or spread to other parts of the body. These abnormal cells lump together to form a mass of tissue or â€Å"malignant tumor†. Malignant means that it can spread to other parts of the body or Metastasize . If the breast is the origin al location of the cancer growth or malignant tumor, the tumorRead MoreBreast Cancer : Cancer And Cancer Essay1741 Words   |  7 Pages Internationally, breast cancer is the most commonly diagnosed cancer and the leading cause of cancer related death amongst women. (CITE) Each year an estimated 1.7 million new cases are diagnosed worldwide, and more than 500,000 women will die of the disease. (CITE) According to (CITE), somewhere in the world one woman is diagnosed with breast cancer every 19 seconds and more than three women die of breast cancer every five minutes worldwide. (CITE) Breast cancer is a heterogeneous condition thatRead MoreBreast Cancer : Cancer And Cancer912 Words   |  4 Pagesinvasive breast cancer in their lifetime. In 2016, a projected 246,660 new cases of invasive breast cancer are estimated to be detected, along with an additional 61,000 new cases of non-invasive breast cancer. There are greater than 2.8 million women with a diagnosis of breast cancer in the United States, including women presently being treated and women who have completed treatment. Research developments over the past tw enty years have ultimately altered the prognosis of breast cancer care. InRead MoreBreast Cancer : Cancer And Cancer1714 Words   |  7 PagesBreast Cancer The twentieth century has often been called and known as the cancer century. The reason being is that throughout the century, there have been more than a hundred types of cancer discovered across the world. In addition to the discovery of these many cancers, there has been an enormous medical effort to fight all kinds of cancer across the world. In the early decades of the century, cancer was considered to be a fatal disease, resulting in a high number of deaths. Although manyRead MoreBreast Cancer : Cancer And Cancer1372 Words   |  6 PagesBreast Cancer Disease Overview Breast cancer is a disease in which certain cells in the breast become abnormal and multiply uncontrollably to form a tumor. Breast cancer is the second most commonly diagnosed cancer in women. (Only skin cancer is more common.) About one in eight women in the United States will develop invasive breast cancer in her lifetime. Researchers estimate that more than 230,000 new cases of invasive breast cancer will be diagnosed in U.S. women in 2015. Cancers occur when a

Procurement Management of the Global Companies

Question: Discuss about the Procurement Management of the Global Companies. Answer: Introduction The study focuses on the procurement strategies of the global companies as well as the Toy Store. They struggle to increase the value of the customers in order to improve their performance. Companies are trying to grab the attention of the customers in order to purchase goods from the suppliers. It is seen that the companies are building strategies and policies for the suppliers (Beske, Land and Seuring 2014). The purchase of the materials and the services come under the category of procurement. The impacts of the suppliers in the manufacture of the goods are the vital points of concern that the managers of the companies must focus in order to maintain the cost of manufacturing. The supply base is considered as the important aspect of the supply chain of the enterprise. In this context, Toy Store is a small medium enterprise that is facing issues in the supply chain management, quality of the suppliers, supply chain relationship management (Brandenburg et al. 2014). It can be said that the capabilities of the suppliers usually help the enterprises in order to differentiate themselves towards their customers while providing them quality products or services. The manufacturing sector focuses the percentage of the sales of the goods and manufacture of the products. The main aim of the company is to minimize the cost of manufacturing goods in order to earn a substantial profit (Christopher 2016). The supply-chain management activities are focused while implementing newer approach in order to bargain hard with the suppliers and reduction of price. The essay will describe about three good practices of purchasing and supply chain issues of three case studies. It will discuss about the problems and issues in procurement. Apart from that, it also provide recommendations to the Toy Store in order to mitigate the problems in the procurement processes. Three Case studies In order to describe the problems of the supply-chain management issues of the Toy Store, three good practice examples along with sourcing snapshot is chosen from the textbook in order to make support of the problems identified in the procurement process of Toy Store. The three case studies of three companies are described in details by comparing them in terms of core problems and the suggested solutions to the individual companies (Dekker et al. 2013). Apart from that, the implications of the knowledge gained from the good practice examples and sourcing snapshot are used to mitigate the procurement challenges of the Toy Store. Sourcing snapshot: Supplier Continuous Quality Improvement Program by Intel The case study of Intel regarding Supplier Continuous Quality Improvement Program (SCQI) is focused on maintaining the quality of the products provided by the supplier and the improvement program that encompasses the performances of the suppliers. Intel focuses on practicing minimization of time and reduction of cost of the inspection. The SCQI program by Intel establishes the indicators, metrics and goals that evaluate the total capabilities of the suppliers of Intel (Monczka et al. 2015). The aim of implementing this program is to evaluate and check the procedures of the suppliers towards the company. The good practice examples suggest that the company has issues with the suppliers regarding supply chain relationship management. However, the company has successfully mitigated their quality related problem with their suppliers. It can be said that suppliers are an important part of the whole supply chain of Intel in order to maintain the quality of the products sold by Intel to the customers across the world (Monczka et al. 2015). Good practice example: Improving Supplier performance through supply relationship management (SRM) The case study focuses on the improvement of the performance of the supplier while maintaining a good relation with the suppliers. The company has found that performance of the suppliers depends on the intensity of relationship maintained by the company. It also describes about the effectiveness of the supplier relationship program of the Dublin based biopharmaceutical global company called Alkermes, plc in Ireland. The company has conducted survey in order to check the performance of the supplier. However, Alkermes, plc has found the responsiveness and the performance of the suppliers waning (Monczka et al. 2015). In order to mitigate the gap of the communication of the company with their suppliers, the codes of conduct of the suppliers with the company must be improved after identifying the areas of improvement. It will help Alkermes, plc while formulating the programs of supplier-relationship management that will help in manufacturing products with guaranteed high quality to the c ustomers of the company (Monczka et al. 2015). Sourcing snapshot: Supplier portal and P2P of Rockwell Collins The case study has focused that the company is known for its supply chain management. Rockwell Collins is practicing processes on the material planning processes that will help the company in reaping further benefits in terms of inventory and asset management. By practicing this, the company has more stable supply chain. The innovative process of maintaining a supplier portal by the company is to check the performance of the suppliers working with the company (Monczka et al. 2015). The supplier team of Collins is focused on the strategic sourcing and containing costs of the company by maintaining a good relationship with the suppliers. The sourcing snapshot illustrates the fact that Rockwell Collins is using lean supply chain management and six-sigma. It can be said that by using efficient supply chain management systems, the company is earning a good reputation in the market as well as towards its customers while supplying high quality products and services to its customers (Monczka et al. 2015). Compare and contrast of the core problems In this section, the similarities and differences of the problems faced by the three companies that has been discussed earlier are described in details. The core problems of the three case studies will help in providing solutions to the small medium enterprise Toy Store in terms of procurement management and supply chain management (Ellram and Cooper 2014). Similarities of the core problems in the case studies The core problems of the three companies are related to the management of the supply chain issues along with the relationship with the suppliers. It can be said that the profitability of the company depends largely on the distribution, supply chain management and manufacturing process, etc. The purchasing and the planning processes of Intel and the pharmaceutical company are facing issues in the supply chain management (Fawcett, Ellram and Ogden 2014). The similarity of the core problems of the purchasing process is that there is a gap between the communication channels. It is important to maintain a good relation with their suppliers. The supply chain process of Toy Store is also not up to the mark. Toy Store is not maintaining the relation with the suppliers. Failure in the supply chain relationship management will cause the increase of cost of production. Increase in the cost of production will lead to less profitability. Apart from that, it can be pointed out that the Rockwell Co llins, Intel, etc. have an improved supply chain management system that focuses on the lean supply chain, six sigma and quality maintenance program with the suppliers (Fredendall and Hill 2016). Globally companies are facing issues in purchase management because of the limited resources. Limited resource of the companies while managing the purchasing processes is a big problem that is the cause of maintaining quality in the supply chain management. The case studies of the three countries focused that the suppliers are not providing good quality of the raw materials to the companies that causes manufacture of low quality items (Golicic and Smith 2013). It will diminish the image of the company not only in the market but also in the minds of the customers. Procurement people must emphasize on the continuous improvement of the processes of the transaction level of the different types of the issues of the companies with the suppliers (Handfield et al. 2015). Differences of the core problems in the case studies Apart from having similarities, there are differences of the problems of the three companies including Toy Store. It can be said that the procurement challenges are faced by the people associated with managing the suppliers. The codes of conduct of the company with the suppliers are not in a good position. Toy Store usually facing challenges with the management of supplier relationship in order to maintain the cost of the manufacturing of the costs. Procurement challenges also include the competitive methods used by other companies in order to earn huge profit while selling goods in the market (Hsu et al. 2013). It requires improved methods of supply chain relationship management that is not used by Toy Store. However, on the other hand, it can be said that Intel and Alkermes are facing issues in quality issues of the products of the suppliers and the performance of the suppliers. The company has conducted a survey in order to check the suppliers issues and performances. After conducting the survey, it is found that there is a huge communication gap between the company person and the suppliers that is the reason of the lower performance of suppliers. On the contrary, Intel has found that the quality of the products that the company is manufacturing is not up to the mark (Mangan, Lalwani and Lalwani 2016). Hence, there is a chance of diminishing the image of the brand. The company has found the quality issues only when it has found the performance of their existing processes of supply chain. Another company, Collins is known for its improved practices of procurement processes and supply chain relationship management practices. There are some issues found in the relationship of the company w ith the suppliers and in the distribution problems with the other related companies (Pagell and Shevchenko 2014). Compare and contrast of the suggested solutions While discussing the problems faced by the companies, the natures of the problems are discussed in details. However, it can be said that the problems of the companies have both similarities and differences. Therefore it is pointed out that the companies have used methods which are similar in order to mitigate the problems of procurement at the core level (Ross 2013). After discussing the core problems of Intel, Collins, Toy Store and Alkermes, it has found that since the core problems are different but falls under the category of supply chain management problems, so the solutions and the methods of mitigating the processes are different (Rushton, Croucher and Baker 2014). It is suggested that the processes of Supply chain quality management program of Intel is unique in terms of quality maintenance. It is a proper method that will help global companies as well as small medium enterprises like Toy Store. The internal operations of the procuring department must be efficient enough in order to perform the activities of the procurement activities and the supply chain management activities. They can be done by implementing the following methods such as: To determine the staffing levels To develop and adhere the administrative budgets (Schaltegger and Burritt 2014) To provide growth opportunities and professional training for employees To introduce new improved buying materials and systems that would use improved technology in order to include the visibility in spending and efficient payment and invoicing that will lead to satisfaction of the user (Seuring 2013) However, it can be said that talent management is another aspect that is practiced by the organizations in order to implement new procedures of procurement and supply chain management. Talent management is considered as a vital aspect that is essential not only in procurement management but also in other business operations because the necessity of qualified and experienced purchasing personnel is expanding globally (Stadtler 2015). Organizations are expanding their business operations that require a solid supply chain management system across its different branches. With the implementation of new technologies alone will not only help to get the expected results. Toy Store, Alkermes, Intel in this perspective focuses on the suppliers aspect rather than the other practices. Implementation of theoretical models of supply chain management along with proper customization is essential (Tseng and Chiu 2013). However, it can be said that Alkermes, Collins, etc. use models like lean supply c hain management, six sigma, just in time in a customized way according to the needs of the procurement needs. The case studies of Alkermes portray the gap of communication between the suppliers and the company personnel. Hence, it can be said that the performance management of suppliers are not working well so that they can meet the demands of the customers and the quality management department of the company. Intel on the other hand is emphasizing on the models of supply chain quality. All these methods will be successful only when talented pool of efficient expertise of employees are present in the different branches of these global companies like Intel, Alkermes and Collins, etc (Waters and Rinsler 2014). The sourcing of products is necessary to determine the various aspects of procurement. It can be done by sourcing services and products at a proper price, sourcing them from proper source i.e. suppliers, sourcing them in an exact quantity, arranging them in a right time for service/delivery performance to the internal customers. In this way, it can be pointed that though the issues of th ree companies in the case studies are similar in the category of supply chain management and procurement management processes but they are different in terms of functions and systems of supply chain and distribution system (Wieland and Handfield 2016). Implications of the knowledge on the organization In this section, the best practices that are cited from the good practice examples and sourcing snapshot of the text book are to be used by Toy Store while improving their supplier relationship management as well as their improved performance. The goal of Toy Store in the perspective of procurement management is not only production of good quality toys and other related products but also to sell them at a reasonable price to the customers. The products must be of higher quality so that they can meet the latent demands and expectations of the customers. For this goal, implementation of lean supply chain management can be used in order to manage the level of inventory and the level of production of the toys at right amount (Wisner, Tan and Leong 2014). Apart from that, six sigma and just in time methods of supply chain measures that Alkermes has been using can also be used by Toy Store while maintaining the stocks in the inventory. It will help the company in manufacturing products as well as delivery of their toys to other retailers and distributors. The recruitment of the workforce regarding the procurement of the different types of methods and approaches are essential (Wolf 2014). Talented workforce will help in the strategic partnership of the company that involves outsource strategy. The supplier performance management is recommended to Toy Store to increase the supplier buyer relationship. This practice is used by the Alkermes after conducting a survey among the different suppliers. It can be said that the procurement strategies of Toy Store are not updated in order to meet the aggressive competition in the market (Zhu, Sarkis and Lai 2013). Evaluation of the quality of the products sold by the suppliers of the company can use the model used by Intel in its phase of procurement management and the supply chain management. Toy Store has conducted a survey to check the quality of the products and the code of conduct of the suppliers. The important objectives of Toy Store in the aspect of purchasing and sourcing are maintenance of the suppliers, selection of suppliers, and development of the suppliers performance management (SPM) (Wieland and Handfield 2016). Few steps are recommended to Toy Store in order to ensure purchasing and sourcing are: Selection of suppliers which are competitive Identification of the new suppliers which have excellent performance while developing new suppliers Performance of the existing suppliers is to be tracked (Rushton, Croucher and Baker 2014) Implementation of new technology in the manufacturing process and in the new product development Development of various contingency plans along with supply options while reducing risk in the newly implemented strategies of supply chain Supporting the requirements for a globally and diverse competitive supply base (Schaltegger and Burritt 2014) Conclusion It can be concluded that the case studies that has been taken from the textbook is found to be essential while recommending the best practices to the organization. However, it can be said that processes of supply chain management and procurement processes are critical aspects in any business environment. The essay focuses on the implications of the case studies on the problems of Toy Store in the perspective of supply chain management. It can be said that the company is facing issues in choosing suppliers and evaluating their performances. Selection and evaluation of their performances are necessary because these activities are related to the profitability. The procurement management issues of Toy Store can be solved if the best practices that are explained in the essay are implemented in the supply chain management processes of the company. The company is facing issues in the supplier relationship management and their performance evaluation. In the modern competitive business world, it can be said that companies must have an innovative and improved supply chain process that will enhance the distribution system of the company. In the end, these good practices will help in earning huge profits while implementing strategies of cost leadership in the management of supply chain processes. Apart from that, it can be said that the good practices of the companies like Intel will help Toy Store in mitigating the issues if the company can implement the practices in a customized way. Recommendations along with the comparison of the practices of the organizations are explained in a detailed manner. It will help in implementing the knowledge gained by reviewing the case studies to the supply chain activities of Toy store. However, the procurement activities of the different companies are described in various perspectives of purchasing and supply chain management aspects. References Beske, P., Land, A. and Seuring, S., 2014. Sustainable supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature.International Journal of Production Economics,152, pp.131-143. Brandenburg, M., Govindan, K., Sarkis, J. and Seuring, S., 2014. Quantitative models for sustainable supply chain management: Developments and directions.European Journal of Operational Research,233(2), pp.299-312. Christopher, M., 2016.Logistics supply chain management. Pearson UK. Dekker, R., Fleischmann, M., Inderfurth, K. and van Wassenhove, L.N. eds., 2013.Reverse logistics: quantitative models for closed-loop supply chains. Springer Science Business Media. Ellram, L.M. and Cooper, M.C., 2014. Supply chain management: It's all about the journey, not the destination.Journal of Supply Chain Management,50(1), pp.8-20. Fawcett, S.E., Ellram, L.M. and Ogden, J.A., 2014.Supply chain management: from vision to implementation. London: Pearson. Fredendall, L.D. and Hill, E., 2016.Basics of supply chain management. CRC Press. Golicic, S.L. and Smith, C.D., 2013. A meta?analysis of environmentally sustainable supply chain management practices and firm performance.Journal of supply chain management,49(2), pp.78-95. Handfield, R.B., Cousins, P.D., Lawson, B. and Petersen, K.J., 2015. How Can Supply Management Really Improve Performance? A Knowledge?Based Model of Alignment Capabilities.Journal of Supply Chain Management,51(3), pp.3-17. Hsu, C.W., Kuo, T.C., Chen, S.H. and Hu, A.H., 2013. Using DEMATEL to develop a carbon management model of supplier selection in green supply chain management.Journal of cleaner production,56, pp.164-172. Mangan, J., Lalwani, C. and Lalwani, C.L., 2016.Global logistics and supply chain management. John Wiley Sons. Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015.Purchasing and supply chain management. Cengage Learning. Pagell, M. and Shevchenko, A., 2014. Why research in sustainable supply chain management should have no future.Journal of supply chain management,50(1), pp.44-55. Ross, D.F., 2013.Competing through supply chain management: creating market-winning strategies through supply chain partnerships. Springer Science Business Media. Rushton, A., Croucher, P. and Baker, P., 2014.The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers. Schaltegger, S. and Burritt, R., 2014. Measuring and managing sustainability performance of supply chains: Review and sustainability supply chain management framework.Supply Chain Management: An International Journal,19(3), pp.232-241. Seuring, S., 2013. A review of modeling approaches for sustainable supply chain management.Decision support systems,54(4), pp.1513-1520. Stadtler, H., 2015. Supply chain management: An overview. InSupply chain management and advanced planning(pp. 3-28). Springer Berlin Heidelberg. Tseng, M.L. and Chiu, A.S., 2013. Evaluating firm's green supply chain management in linguistic preferences.Journal of cleaner production,40, pp.22-31. Waters, D. and Rinsler, S., 2014.Global logistics: New directions in supply chain management. Kogan Page Publishers. Wieland, A. and Handfield, R.B., 2016. Supply Chain Management. In5th World Conference onProduction and Operations Management. POM 2016. Wisner, J.D., Tan, K.C. and Leong, G.K., 2014.Principles of supply chain management: A balanced approach. Cengage Learning. Wolf, J., 2014. The relationship between sustainable supply chain management, stakeholder pressure and corporate sustainability performance.Journal of business ethics,119(3), pp.317-328. Zhu, Q., Sarkis, J. and Lai, K.H., 2013. Institutional-based antecedents and performance outcomes of internal and external green supply chain management practices.Journal of Purchasing and Supply Management,19(2), pp.106-117.

Starbucks Risk Assesment free essay sample

Contents 1. Launch of a new product/service2 1. 1 Flowchart for launch of a new product/service2 2. Reasons for a Failed Product Line2 2. 1 Adverse Environment Conditions2 2. 1. 1 Industry Competition2 2. 1. 2 Political Implications2 2. 1. 3 Economic Events2 2. 1. 4 Evolving Social Factors2 2. 2 Error in forecast of consumers’ response2 2. 2. 1 Incomprehensive Market Analysis2 2. 3 Ineffective Product Launch2 2. 3. 1 Wrong Timing2 2. 3. 2 Unprofitable Product2 2. 3. 3 Inadequate Support2 3. SWOT Analysis2 3. 1 Strengths2 3. 1. 1 Wide range of products sold through numerous locations2 3. 1. Strong Brand Equity2 3. 1. 3 Excellent Research and Development capabilities2 3. 1. 4 Relationships with established players2 3. 1. 5 The Starbucks Experience2 3. 2 Weaknesses2 3. 2. 1 Criticism and controversies dilute brand value2 3. 2. 2 Lack of Diversification2 3. 2. 3 Product recalls affect margins and brand image2 3. 3 Opportunities2 3. 3. 1 Growth through acquisitions and partnerships 2 3. 3. 2 Introduction of Starbucks VIA coffee essence in Japan and China2 3. 3. 3 Rapid expansion in China and entrance into a new market – India2 3. 4 Threats2 3. 4. 1 Rising prices of raw ingredients2 3. 4. Increasing health consciousness among Americans could affect demand2 3. 4. 3 Increasingly stiff competition from other giants like McDonalds and Dunkin Donuts2 4. Emerging/Current Trends2 4. 1 Health-conscious customers2 4. We will write a custom essay sample on Starbucks Risk Assesment or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 2 Brand erosion due to changes in pricing and new product offerings2 4. 3 Strategic alliance with Green Mountain Coffee Roasters2 4. 4 Implication for strategic objectives and strategy formulation:2 5. Risk prioritization for Starbucks2 5. 1 Risk of losing market share due to stiff competition2 5. 2 Commodity price risk2 5. 3 Currency risk2 5. 4 Supply chain disruption risk2 5. Risk of changing consumer preference2 5. 6 Risk of failure and breach of security of IT systems2 5. 7 Product liability2 5. 8 Risk of Non-Compliance with Laws and Regulations2 5. 9 Risk of loss of key personnel2 5. 10 natural hazard risk2 5. 11 Risk Map2 6. Risk Responses and control devices/activities2 1. Launch of a new product/service Being in a heavily competitive market, the need for lean, rapid and profitable new product development has never been more pressing. This is especially so as product life cycles are getting shorter and customers are more demanding as they are now spoilt for choice. Starbucks introduces on average, one new product each day. It is important for Starbucks to keep this trend going and constantly innovate to keep a step ahead of its competitors. Starbucks believe that it is not just about getting new customers; it is also about keeping the old ones interested. Hence they constantly engage in efforts to develop new ideas, products, and experiences for its customers. CEO Howard Schultz and other senior executives honed in the importance of always being open to re-inventing the Starbucks experience. In fact, at Starbucks, consumer input is an important part of their development process. A website was set up to encourage contribution of ideas, facilitate discussions and even allows consumers to see the development of their ideas. Starbucks has a dedicated Research Development team whose job is to constantly design and develop their food and beverages. Expenditures allocated are high each year (2010: $9million, 2009: $7million and 2008: $7million) as Starbucks continues to invest in technical research and development activities, in addition to customary product testing and product and process improvements in all areas of its business. The first step to launching a new product is idea generation. At Starbucks, brainstorming sessions are conducted and consumers’ suggestions on the company’s website are taken into account. Next, these ideas are screened and those which are perceived to be the least likely to succeed will be eliminated. The filtering is first done through discussions between both the staffs and the consumers on their website before being reviewed by Starbucks’ Idea Partners. These partners include not only food scientists from the RD team but also the environmental impact manager. This ensures that ideas which seems feasible to the RD team will also incorporate sustainability into all aspects of its operations. By doing so, Starbucks would ensure that new products will sell well and at the same time fit in with the company’s image, vision and strategic objectives. The third step would be concept development and testing which will require formal evaluations of the product concept by consumers, usually through some form of marketing research. At Starbucks, in testing new products, extensive in-house taste-testing and research done via focus groups are carried out. At each focus group, participants â€Å"taste it, grade it and then tasted it again† to ensure effective and accurate results. From here, ideas which are selected will then be analyzed for its marketability and costs. This is referred to as the business analysis stage whereby both market and product analyses would be carried out. The market demand would be determined and the feasibility of production would be assessed. However, should sales price set be unable to cover the production cost, the idea would be discarded as it would not be economically viable. For ideas approved thus far, Starbucks will first gradually launch these new products to a selected market. This test in an actual market is a step further from the stimulated market assessed during the focus groups. However, as opposed to jumping into the water with both feet, Starbucks tends to take a more cautious approach and engage in a state by state product launch (in the US) to affirm the market analysis previously performed and then reassess the feasibility of introduction of the product in its cafes around the world. As for products which are poorly received by the market, they will be pulled back for reconceptualisation or even be discarded altogether. Lastly, commercialisation takes place. This is the point where the product will be introduced to all markets. Starbucks generally relies on their interactive website to introduce and promote the new products to their customers since new products are consistently introduced and it may be too costly to advertise each time. Taking a step further, Starbucks will continue to improve on new products through the feedbacks it gathers from its customers in an effort to keep customers happy and satisfied. Due to the nature of the products sold by Starbucks, relatively small investments are required throughout the development of new products. However, it was noted that some products took up to a year before being introduced to the market. In this aspect, the development process should be sped up in order for Starbucks to ensure competitiveness and have an edge over its competitors. The flowchart below (Figure 1) depicts the process for the launch of a new product/service from its initial conception to its retail sales to customers. 1. 1 Flowchart for launch of a new product/service Figure 1 2. Reasons for a Failed Product Line Starbucks has a ubiquitous presence in the international cafe scene and recent years have witnessed it introducing new concepts and products. However, while some were embraced by its consumers, others suffered the fate of being withdrawn from the stores. Examples of failed products include: the Blackberry Green Tea Frappuccino, Organic Milk and Orange Mocha Frappuccino. A product is a failure when its introduction into the market is subsequently followed by its withdrawal; with reasons attributed to its unprofitability, the inability of it to go through its anticipated product life cycle or realise a sufficient share of the market to ensure sustainability in the market. There are various factors which can culminate in its failure and the product is not necessarily an inferior good. Figure 2 below, presented in the form of a fault tree diagram, illustrates the circumstances in which a product may fail in the context for Starbucks. The three direct reasons identified for product failures at Starbucks are the adverse environment, error in the forecasting of consumers’ response and an ineffective product launch. These causes are further examined with respect to their causal constituents and discussed extensively. Suggestions would also be proposed to management to ensure that future product development, design, strategy and implementation will be more successful. . 1 Adverse Environment Conditions To investigate the influence the environment may have on the success of a product in the market, we take into consideration the relevant macro-environmental factors, a component of strategic management. Due consideration should also be given to the micro-environment, which is the industry analysis with reference to Porter’s five forces. 2. 1. 1 Industry Comp etition Industry competition has always been very real in all businesses. Starbucks as an international coffeehouse chain faces both global and domestic rivals. In a competitive industry, a company not only has to monitor its competitors’ moves, but it also has to preempt them; failure of which would diminish its competitive advantage over its rivals, and hence dampen the success of a new product. Thus, Starbucks has to be constantly updated of its competitors’ products and their upcoming launches so as to prevent introducing a product that has a relatively lower perceived utility to the consumer. In view of globalization, the company can easily get information on its rivals, albeit more time has to be spent on such industry analysis since the rivalry scene spans globally. Moreover, it needs to continuously innovate and maintain a sustainable competitive advantage lest its products become obsolete over time. Effort should also be spent on building the brand image and establishing customer loyalty through the use of membership cards to encourage consumers to return back to Starbucks and support the current and new range of products offered. This differentiation would also address the threat of substitute products. Starbucks prides itself on premium pricing, hence its products have to be differentiated otherwise consumers would easily choose the low priced ones over the newly introduced products. The constant innovation, building of brand loyalty and offering of differentiated products also serve as a barrier to entry for new entrants as they cannot easily replicate the Starbucks formula and make profits from them which may dilute the potential profits Starbucks can gain. 2. 1. 2 Political Implications Political implications may culminate in the failure of a product when the government intervenes in the form of new policies passed. Events such as minimum wage laws, tax policies, trade embargoes and tariffs may affect the profitability of the product offered and hence diminish its success. Moreover, trade restrictions may effectively impair the import or export of products such as bottled coffee to another market while regulations with respect to food can directly affect its feasibility to be offered to consumers. Losses may be sustained in terms of the sunk costs and effort put into it before the launch of the product itself. Time would be needed for accommodation to the changes and this delay could prove detrimental if competitors have a first mover advantage. Thus, Starbucks has to assess the political climate and stay updated with regard to the policies in place. This is especially so when deciding to venture into new countries as part of its international strategy because certain countries have erratic governmental policies. 2. 1. 3 Economic Events Economic events, particularly black swan events like the recent financial crisis in 2008 may also lead to a failed product line. An unexpected economic downturn would deem the previously forecasted figures overly optimistic when demand plummets due to the fall in disposable income of consumers. The lack of demand for the product would not justify the costs of rolling out or continuation of its production. This premature withdrawal of the product from the market in the face of an economic crisis will thus be labeled a failed product. Thus to accommodate for such events, Starbucks should mete out plans incorporating sensitivity analysis for the worst case scenarios. It should not just benchmark the scale of its launch to that of its competitors, but only to the scale which corresponds to its loss appetite. Its primary mission is to sell its products to the consumers. Hence, even if the economy is burgeoning, it should not speculate and invest heavily on the wave. The risks should still be assessed and hedged. As discussed previously, other economic events with similar results would be the revision of economic policies. 2. 1. 4 Evolving Social Factors Evolving social factors also play a pivotal role in affecting the environment, and the forecast of consumers’ response which will be discussed later. More often than not, the cradle to the launch process of a product takes a significant time period, after factoring in the development process and time needed for research and marketing efforts. Hence, when the product is ready for launch, the demographics might have already changed. The impetus of developing a product is to cater to the consumers; thus when demographics have evolved, the target group might have changed in composition or size. Demand for the products may not be as effective as planned and there is a necessity to divert the marketing efforts to focus on the more relevant targets. Thus, Starbucks should strive to be more efficient in its development process to keep up with the social environment. It also has to monitor its target group closely so that if there is a need to, it would be cheaper to pull out before the whole product development process is complete. This issue is homogenous to a change in customer preferences. Market analysis is usually done before the development of the product, hence Starbucks may be subject to the whims and fancies of the fads in the society which may alter consumer preferences. A new concept or product such as a yoghurt cafe introduced by other competitors may change the trend and induce consumers to stray away from the products Starbucks is planning to offer; the promotion of a theme based lifestyle such as a focus on organic products would also increase the probability of a product failure should it not fit in line with the trend. Thus it can be proposed to the management for them to conduct market surveys throughout, till and after the launch of the product to constantly monitor the market situation. 2. 2 Error in forecast of consumers’ response The success of a product is also contingent on the response from the target customers. The demand is usually forecasted through market analysis based on the characteristics of the consumers and trends in the market. Ineluctably, the evolving social factors may skew the market analysis conducted if there is a significant time lag between the study done and the introduction of the product into the market. The anticipated demand failing to live up to expectations creates an oversupply that would bog down profits should they have low turnover or have to be sold at a loss. Undeniably, the forecast can also be erroneous due to great reliance on a market analysis where not all factors are fully taken into consideration in deliberation of the decision to launch a product. 2. 2. 1 Incomprehensive Market Analysis A forecast error can be attributed to an incomprehensive market analysis conducted and not merely due to the changing environment or the subjects in the analysis. Currently, Starbucks is present in more than fifty five countries and though aligned with their international strategy, it may be tedious on Starbucks’ part to have an in depth analysis of each market. A product or even a whole concept may fail if the organization neglects â€Å"glocalization†. Glocalization is a term coined to illustrate the imperative to cater the product for each individual local market for globalized companies; seldom will there be a one-size-fits-all product that will be embraced by all global consumers. Therefore, if a company fails to identify the distinctiveness in the local scene and capitalizes on the wrong trend and behaviors of the consumers, its product may fail to generate the expected demand and miss the target for sustainable market share. A case in point is the closure of 61 out of 84 stores in Australia because it failed to understand the Australian cafe culture and resulting in it products failing to cater to majority of the locals. Starbucks can consider venturing into countries through joint ventures as the locals would definitely be better versed in the local markets and be able to identify the inherent culture more effectively and efficiently. Management may also be overly optimistic with the market analysis results investing too heavily into the introduction of the product into the market, resulting in greater repercussions when sales are barely able to cover the investment made. The product would then be a failure; which could otherwise turn out to be a small success if the management had not been too ambitious over the launch. An inadequate market analysis could also be due to an overestimated market size and this manifests itself two fold when fueled by optimism. A supposedly smaller than estimated market share may not justify the efforts to launch the product in the first place. Hence management should consider the former solution of a venture partnership to tap on local expertise. If it prefers to have full control, it should engage marketing experts in the local scene who are more experienced and more likely to generate trustworthy estimates. That being said, Starbucks, while relying on the market analysis performed, should also consider working along together with their finance department more closely in examining the financial feasibility of the launch of a product into the market too. The finance department would also have their own set of estimates for the market share and thus provide for sensitivity analysis to measure the threshold, optimal amount and feasibility of the product launch. There is also a possibility of targeting the wrong group of consumers. This can occur when results are misinterpreted and certain assumptions made are erroneous, resulting in an inaccurate stand on the suitable target group for the products. Consequently, advertising and marketing efforts would be directed towards the wrong consumers, and these may prove futile. The product fails to reach out to its intended customers and may fail consequently. In another scenario, the product is developed and catered erroneously to a specified group of consumers who are not suited to it. Although these possibilities are remote, we should not preclude them. This can easily be remedied by concerted efforts to direct the marketing and advertising to the intended consumers provided there is no significant time lag, lest the consumers view the product as obsolete and a failed product to others that is now targeted at them. An incomprehensive market analysis can also occur when the price strategy set is inappropriate for the market. Starbucks prides itself on the high quality coffee beans which it uses for its coffee and this differentiating factor permits them to pursue a premium price strategy. However, individual markets have differing standards for coffee quality and thus what Starbucks proclaims as high quality may be viewed as a normal good in some economies. In such cases, premium pricing is not suited in these environments because there is a weak price-quality relationship. Marketing surveys have also shown that many consumers found that the premium roast coffee offered at McDonald’s (which is relatively cheaper) is even better in quality as compared to Starbucks’. Thus Starbucks should continually strive to yield higher quality brews that customers would perceive to be better relative to its competitors; otherwise, its main business – coffee, would fail. This could be implemented by selecting more premium grade suppliers to justify the price at which it is sold and also to ensure quality control in the grinding and brewing process which could be made transparent to the customers so that they would know what they are paying for. 2. 3 Ineffective Product Launch Ultimately, the inherent nature of the product and factors surrounding its launch would have an impact on whether they would be embraced by the consumers. These factors would include the timing of the launch, the profitability of the product and also the support rendered in the launch of the product in the market. 2. 3. 1 Wrong Timing More often than not, managers would push for constant introduction of new products into the market so as to boost sales as this would reflect well on their performance should they be appraised based on this indicator. Hence, high level executive push of products can be viewed as the main impetus for the launch of products. However, the timing of the launch of products is crucial in determining whether it can capture a sustainable market share at that point in time. If managers are driven more by profit, they may neglect the marketing aspects of the launch of the product and fail to anticipate the moves of its competitors and also neglect the market environment. Introducing a product at a bad time would jeopardise the success of the product as it may coincide with the launch of a popular product by another competitor or an adverse environment. A slate of new products introduced may also undermine their effectiveness as a whole to capture market share. These new products may undercut the integrity of the Starbucks brand for coffee purists. There is also a challenge for the baristas who have to wrestle with an increasingly complex myriad of products offered on the menu. The baristas would also not have time to interact with the customers when they spend time customizing the drinks for the customers; this would conflict with their brand experience since the baristas are hired for their social skills. Besides, waiting time would have increased, further diminishing the effectiveness of the new products introduced. Therefore, the launch of the new products should be timed with more consideration given to the suggestions provided by the marketing department rather than management who may be more concerned about the financial figures. The launch of products should also be paced alongside an implementation timeline so that there would be a greater overall impact brought about by each individual product and their success can be singled out and evaluated more effectively. . 3. 2 Unprofitable Product Another due concern for a product failing can be the profitability of the product itself. The development of un-complementary products that do not fit into the current basket of offerings may fail to bring about the desired sales as the customers may not be accustomed to buying an unrelated product. Using simple economics, complementary products have a higher cross elasticity of demand and th us sales of one related product will bring about the sales of another more effectively. On the other hand, an un-complementary product would be much harder to appeal to the customer to buy as it is viewed as an isolated and new product on its own. It is unable to capitalise and ride on the sales of current products; hence the likelihood of its failure would be higher. Starbucks should avoid venturing into unrelated products under an umbrella branding strategy as consumers may not be able to relate the brand name to the product. Instead, it can practise multiple branding to launch a new un-complementary product. A product can also be unprofitable due to self-cannibalisation, which is defined as the reduction in sales volume, sales revenue or market share of one product as a result of the introduction of a new product by the same producer. The new product may seem successful since it may generate its projected demand but effectively, from the stand of the whole organization, it could be a failed product as it merely captures the market share of another product. For the company, there is no increase in aggregate market share for all of its products. However, Starbucks can turn the situation into its own advantage by selling similar products with different branding. In this manner, customers would be induced to look at the same product twice in different guises. This would serve as a reinforcing advertising strategy and may increase market share since consumers have an alternative to choose from (other than the current product offering) due to their perceived differences in the products. Another reason which can give rise to an unprofitable product would be an error in estimates of the costs needed to produce it. The cost model adopted in deliberating the price setting may not have comprehensively incorporated the factors and risks that the organization may face. Such risks include commodity price risks and operational risks. Though Starbucks hedges against commodity prices, the hedge might not be effective. The risk responses to operations outage may also be unresponsive or ineffective too. Thus when such risks materialise as events, higher costs relating to the product may be incurred by the corporation which would decrease margins and result in losses incurred. Henceforth, Starbucks can consider the proposal for a formal risk management team or committee which would implement the enterprise risk management system to manage its risks more comprehensively. 2. 3. 3 Inadequate Support Advertising and marketing are crucial avenues to launch a product and bring it to the masses. However, when there is insufficient publicity due to a small budget allocated by management, the product may not be able to reach out to all its intended targets and thus demand may not be as optimistic as projected. In such a scenario, the management should always decide on the best method of advertising to the consumers and then subsequently allocate a reasonable sum of money for that purpose. The allocation can be based upon launches of previous comparable products for a better estimate. However, with the proliferation of the mass media and the burgeoning use of the Internet and social media platforms, viral marketing can easily achieve the objective of increasing awareness at a lower cost without jeopardizing the success of the product due to insufficient advertising and marketing support. This will however depend on whether the target groups are technology-savvy users of social media. Starbucks should also consider the need for a communications officer to handle this aspect of the organization as the media is a double edged sword any product disgruntles can permeate through the online community virally too. The officer would need to be trained as a spokesperson for the company to monitor and respond to feedback provided from the online social community. The channel of distribution should also be aptly chosen so that it would facilitate the launch of the products. Starbucks previously had Kraft as a distributor and advertiser for its products. This was a strategic alliance in which Starbucks could also leverage on Kraft’s name to sell its products on the market. However, if the channel of distribution was improper, it would tarnish Starbucks’ products and also its reputation. To add on, the choice of distribution also plays a pivotal role in determining the effectiveness of the product launch. Though retailing products through supermarkets and grocery stores may reach out to more consumers, it may also portray the image of a normal commodity good. Conversely, distributing through exclusive boutiques may render the product of higher standing but may not create much awareness in the market. Therefore, there is an imperative to strike a balance and make an optimum choice in the selection of channel of distribution. More importantly, the positioning strategy is one of the most crucial factors in ensuring a smooth product launch. Positioning is the process whereby marketers try to create an image or identity in the minds of their target market. There can be positioning by product attributes and benefits, price or quality, use or application, product class, product user, competitor or cultural symbols. Without a strong positioning strategy, customers would not be able to distinguish the product from the myriad of other products out there; the required strong product impression needed for repeated sales would be absent and an unsustained market share may justify the failure of the product. Hence, the marketing department should delineate a clear and strong positioning strategy so that the product can be more easily identified with and be well received by consumers. Figure 2 3. SWOT Analysis Strengths * Wide range of products sold through numerous locations * Strong Brand Equity * Excellent RD Capabilities * Relationships with established players * The Starbucks Experience| Weaknesses * Criticisms and controversies dilute the brand * Lack of iversification * Product recalls affect margins and brand image| Opportunities * Growth through acquisitions and partnerships * Introduction of ‘VIA Coffee Essence’ in Japan and China * Expansion in China and entrance into India| Threats * Rising prices of rawIngredients * Increasing health consciousness of consumers * Increasingly stiff competition| 3. 1 Strengths 3. 1. Wide range of products sold through numerous locations Starbucks offers a wide variety of coffee and non-coffee flavoured drinks, a broad selection of ice-shaken beverages and premium teas, and distinctively packaged roasted whole coffee beans in both US and international markets. It also sells a selection of fresh food items such as cakes, scones and muffins; with such selections focusing on the use of high quality ingredients with high nutritional value and great taste. Starbucks currently operates more than 17,000 stores in over 50 countries worldwide. Such an extensive product offering allows it to cater to the different tastes and preferences of consumers worldwide. 3. 1. 2 Strong Brand Equity Since the opening of its first store in Seattle in 1971, Starbucks has built up for itself a strong brand name with people associating the brand ‘Starbucks’ as a premium seller of speciality coffee. Moreover, Starbucks has had partnerships and licensing agreements with other big brand names like Kraft, and this helped strengthen its brand further. The company came in 85th amongst the 100 Top Brands in 2008 by Business Week. Due to its premium brand, Starbucks enjoys a high degree of customer loyalty and thus has a significant competitive advantage over lesser known coffee brands. 3. 1. 3 Excellent Research and Development capabilities Starbucks is known for its premium quality of brewed coffee. The secret behind this excellent tasting coffee lies in its Research and Development (RD) department. The company invests a lot of money in developing new tastes and flavours to ensure it stays relevant and keeps up with its competitors. For instance, in 2009, the company launched Starbucks VIA ready brew coffee to tap into the US$21 billion global instant coffee category market. Starbucks VIA is made using a patented micro grind technology to preserve the coffee’s taste, quality and freshness. Starbucks’ investment in RD is evident in the amounts they spent US$9 million, US$9 million and US$7 million during FY 2010, 2009 and 2008 respectively. 3. 1. 4 Relationships with established players Starbucks had a partnership with Kraft Foods, the biggest confectionery, food and beverage corporation in the US from 1998 to early 2011. Through licensing agreements with Kraft, it sold its ready to drink packaged coffee and beverages in supermarkets throughout the US. Kraft managed all distribution, advertising, marketing and promotion of Starbucks’ products. Though the partnership fell through, there is an inherent strength in such alliances and Starbucks employs this strategy not just in the US, but internationally too. For example, it has entered into an agreement with Arla Foods for the manufacture, distribution and marketing of Starbucks-branded premium ready-to-drink coffee beverages in Europe. Through these licensing arrangements, Starbucks reaches out to a wider customer base as its products are prominently featured in supermarkets, a place with high daily customer volume. 3. 1. 5 The Starbucks Experience What makes Starbucks stand out from its other competitors like McDonald’s and Dunkin Donuts is its in-store ambience. The layout and atmosphere of Starbucks stores is specifically designed to be cosy and intimate, while at the same time providing people with their own personal space to use as they wish. Plush sofas, coffee tables and chairs, and additional perks such as free Wi-Fi in its cafes lure a steady stream of customers to its cafes where they enjoy the famous ‘Starbucks Experience’. 3. 2 Weaknesses 3. 2. 1 Criticism and controversies dilute brand value Starbucks has been involved in several lawsuits. One was filed by a former employee in 2004, alleging that the company violated the California Labour Code by allowing shift supervisors to receive tips. In March 2008, Starbucks was ordered to repay California baristas more than US$100 million. Starbucks was forced to repay tips, with interest, that the company had handed over to shift supervisors. Similar suits have been filed in Minnesota and Massachusetts. Also in 2008, Starbucks was lambasted by environmentalists who accused them of wasting more than 23 million litres of water a day for leaving taps running to ‘prevent germs from breeding in taps’. In February 2009, another lawsuit was filed against the company by an employee for laptop data breach. In connection with this lawsuit, Starbucks offered its employees one year of free credit monitoring and protection for its lapse in security. Incidents like these dampen consumer trust and can significantly erode Starbuckss brand value. 3. 2. 2 Lack of Diversification With just 12% of its operating income for 2010 derived from the International segment (as opposed to 73% for its US Segment), Starbucks could be too heavily reliant on the US market for its profitability. Its current 6,000 stores outside the US are almost half that of the total stores it operates in the US. It should seek to expand internationally in order to diversify and not be overly dependent on one segment alone. 3. 2. Product recalls affect margins and brand image In recent years, the company has recalled several of its products. Thousands of its coffee blade grinders were recalled in 2009 as they could fail to turn off or could turn on unexpectedly, thus posing a laceration hazard to customers. In addition, the company also announced a voluntary recall of 12,000 glass bottles due to the risk of lacerations that consumers were subjected to. Furthermore, a few of its products containing peanut butter were recalled from its stores after an outbreak of Salmonella in the US. Products recalls such as these will hurt its brand and could possibly lead to lower consumer trust in them and hence a decline in the demand for its products. 3. 3 Opportunities 3. 3. 1 Growth through acquisitions and partnerships Starbucks has recently been in talks to acquire ‘Peet’s Coffee and Tea’ in an attempt to expand its business further. The potential benefits of such an acquisition are numerous – from increased market share to strengthened brand equity. If the acquisition is successful this year, it will enable Starbucks to capture an even larger share of the coffee market in the US. Also, the company has been wanting to partner ‘Green Mountain Coffee Roasters’ in an attempt to break into the single-cup coffee sector in the United States, which is currently 80 percent dominated by Green Mountain. A successful partnership will lead to added opportunities for Starbucks to develop its brand further. 3. 3. 2 Introduction of Starbucks VIA coffee essence in Japan and China Following the company’s successful launch of VIA ready brew in the US, UK and Canadian markets in 2009, Starbucks launched VIA coffee essence in Japan in 2010, its first premium coffee stick product in Japan, where 63% of total coffee sold is instant. Starbucks will sell its VIA coffee packets through their 870 retail stores in the country, and eventually expand its reach through grocery stores and other distribution channels. More importantly, Japan possesses huge potential to be a large market, as the at-home market coffee in Japan is worth $5 billion, almost a fifth of the global instant and single coffee market that is worth some US$23 billion. On April 6th 2011, the VIA Ready brew arrived in China and the company hopes to replicate the similar success it enjoyed in several other countries where it had already launched the product. Starbucks VIA Ready Brew has already scooped several accolades for being the ‘most innovative’ and best ‘new product’ of the year and these awards further cement Starbucks VIA Ready Brew as a leader in the instant coffee market. 3. 3. 3 Rapid expansion in China and entrance into a new market – India Starbucks is recognised as one of the top 20 brands in China and its stores have outperformed its US stores in terms of average store profitability. The company has announced plans to expand rapidly in China – it aims to triple the number of stores it has in China to 1,500 by 2015. In fact, Starbucks has discovered an area within the Yunnan province which they believe can produce excellent coffee. They believe that growing coffee in a country that is strongly nationalistic will create a significant differentiating factor in the land of China. The massive potential of China has even led CEO Howard Schultz to proclaim that â€Å"China will be the second largest market in the world for Starbucks after North America†. In 2011, Starbucks announced plans to enter India through a strategic alliance with ‘Tata Coffee’, India’s largest coffee producer and exporter. It has been reported that Tata Coffee and Starbucks would soon convert their alliance for sourcing and roasting premium coffee beans in India into a joint venture, in which Starbucks would hold a 26% stake. Subsequently, Starbucks hopes to open outlets in all major Indian cities, and would aim to increase its stake in the new company to 51% within a year. CEO Howard Schultz acknowledges that â€Å"India is one of the most dynamic markets in the world with a diverse culture and tremendous potential†¦Ã¢â‚¬  and is thus exploring the idea of setting up shop in India. Given that China and India are the world’s most populous nations, the potential market for coffee in these two markets is immense. Starbucks will certainly be able to reap the benefits of its expansion in these two nations should their business model work out well. 3. 4 Threats 3. 4. 1 Rising prices of raw ingredients The rising prices of Starbucks’ main raw ingredients – coffee and sugar will continue to hurt its margins. According to data compiled by the International Coffee Organization, average coffee prices have risen by 54% since the beginning of 2010. Sugar prices also continue to rise steadily and this will have a negative impact on the company’s margins. However, Starbucks tries to mitigate rising costs of ingredients by hedging coffee, dairy and sugar prices to mitigate spot price volatility during the year. 3. 4. 2 Increasing health consciousness among Americans could affect demand The bulk of Starbucks’ products contain caffeine, dairy products and sugar, the health effects of which are the subject of increasing public scrutiny. It is a known fact that excessive consumption of caffeine and sugar can translate into a variety of adverse health related problems. Over recent years, health organisations in the US have been stepping up in their efforts in curbing obesity by promoting a healthier lifestyle in terms of healthier choices of food and drink and the encouragement of more exercise. Increasing health consciousness of American consumers will inevitably reduce the demand for Starbucks’ heavy-laden caffeine and sugar products. This has the greatest impact on their revenue as the US accounts for the largest portion of its market. Globally, consumers are becoming more health conscious too, with Singapore offering popular drinks like bubble tea in different sugar evels. Starbucks might have to resort to adapting to the needs of locals and provide varying sugar levels for their drinks in order to cater to the increasing group of health-conscious Singaporeans. 3. 4. 3 Increasingly stiff competition from other giants like McDonalds and Dunkin Donuts Starbucks has numerous competitors, and major rivals include McDonalds who has, in recent years come up with the McCafe coffee-house-style food and beverage chain, offering similar coffee and food products as Starbucks. Dunkin Donuts is another major competitor that offer similar food and beverage choices at lower prices than Starbucks and stiff competition between these few big-name brands in the US could lead to reduced demand for Starbucks’ products and hence lower profits. 4. Emerging/Current Trends Despite its reputation, Starbucks constantly faces new challenges on the way to meeting its strategic objective: â€Å"to maintain Starbucks standing as one of the most recognized and respected brands in the world†. There are three current issues that may have large impacts on the future growth of Starbucks, namely (1) health-conscious customers, (2) brand inconsistency and (3) strategic alliance with Green Mountain Coffee Roasters. 4. 1 Health-conscious customers Affordable, delicious and healthy food is increasingly demanded around the world. Starbucks’ customers are not an exception to that trend. The Company reported that its customers expect â€Å"better tasting and healthier food options† on the Starbucks’ coffee and non-coffee menus. Starbucks quickly responded to the customers’ needs by introducing a variety of healthy foods in its new menu. Apart from its well-known healthy Skinny Lattes, Starbucks revolutionized the concept of healthy snacking by integrating nutritious and natural ingredients like whole grains and fruits into its bakery products such as the Blueberry Oat Bar and Banana Walnut Bread. The Company also took initiative to reduce preservatives, artificial dyes and flavours and high-fructose corn syrup which link to 90% of its baked products. Moreover, it also currently offers new healthy food options such as Farmer’s Market Salad with almonds, cranberries and sweet apples and Strawberry Banana Vivannoâ„ ¢ Smoothie with pure strawberries. The business strategy of leveraging on complementary products is not new in the industry. It seems that Starbucks has so far tapped well into its complementary food market segment through innovations in its product offerings. 4. 2 Brand erosion due to changes in pricing and new product offerings Starbucks is famous for its authentic brewed coffee and excellent services which allow the Company to charge a premium over its customers. As its business expands, new items such as food and other non-coffee beverages have been added into the Starbucks menu. This deviates from what a traditional coffee house would offer. Recently, Starbucks introduced â€Å"Pike Place Brew†- a US$1. 50 cup of regular coffee which is a contrast to a standard $4 cup of premium coffee. Moreover, to boost the stores’ traffic, the Company also offers USA Today and free pastries to customers who purchase brewed beverages at selected stores. These offerings may be justifiable as the Company has recorded a continuous fall in customers’ visits over the past years. However, using low-pricing as a marketing strategy is dangerous for Starbucks’ image as a premium coffee house. A significant drop in pricing is the fastest way to commoditise a product and Starbucks would face an extremely tough time in increasing the price or removing the low-price products from its menu in future. As the company lives on its innovation and high quality products, offering low-price products would hamper its differentiation strategies and destroy the unique customer experience that it promises to deliver. In 2009, Starbucks launched Starbucks VIA ® Ready Brew which is an instant coffee product with a variety of flavours. While this new line of products may contribute to Starbucks’ growing Consumer Product Group segment (CPG), it could also potentially make authentic coffee lovers desert Starbucks’ stores as sugary and milky flavours like Vanilla and Caramel are inconsistent with espresso Italian-style coffee. 4. 3 Strategic alliance with Green Mountain Coffee Roasters Starbucks Corporation and Kraft Foods Inc. Kraft Foods) had been in a strategic partnership since 1998 which allowed Starbucks’ consumer products to be distributed through Kraft Foods’ channels. Nonetheless, the alliance turned bad over time and led to a litigation war in 2011 where Kraft Foods lost its distribution right of Starbucks coffee to grocery stores. In March 2011, the Company established a new partnership with Green Mountain Coffee Roasters (Green Mountain) in which the new partne r would increase sales of its Keurig machines used to brew Starbucks coffee packaged in its K-Cups coffee packets. While Green Mountain’s competency in packaged food distribution can be comparable with Kraft Foods’ as they are direct competitors, it may take Starbucks a certain amount of time to devise appropriate deal terms and to develop a strong business relationship with Green Mountain. More importantly, since the deal was not an acquisition, there are concerns over Starbucks’ financial benefits from the deal and the commitment of Green Mountain. First, it is unclear if the cost of the coffee cups made from Starbucks’ coffee packs with Keurig machines would be less than the cost of the cups at the walk-in stores. Furthermore, the consumption of complementary products like bakery products would decrease as customers no longer need to go to Starbucks’ stores to get a Starbucks cup of coffee along with other foods. Second, since Green Mountain can leverage on Starbucks’ reputation, its sales of the brewing machines would increase. As these machines are not exclusively designed for Starbucks coffee, Green Mountain may receive attractive deals from other coffee retailers. This would reduce Starbucks’ bargaining power in future deals with Green Mountain and thus would lower the company’s profit margins. 4. Implication for strategic objectives and strategy formulation: To maintain Starbucks as â€Å"one of the most recognized and respected brands†, the Company definitely has to take the described trends and events into consideration in formulating its strategies. The followings are some implications: Providing â€Å"a healthier Starbucks Experience† has been Starbucks’ signature for more than twenty years. As non-beverage sales become a significant component of revenue, Starbucks may have to rethink about the significance of this segment as beyond merely complementary products to its coffee and beverage lines. Natural and nutrition-rich ingredient supplies have to be guaranteed to avoid disruption in its food business and mitigate risk of rising commodity prices. To further enhance the quality and healthiness of its food menu, the Company should source for reliable ingredient suppliers at the lowest cost and have in place rigorous quality control practices to monitor the nutritional value of the food. As the food market becomes more significant, the Company should invest more in positioning its healthy food as a strong connection to the Starbucks Experience motto through marketing and R;D in food processing. Although the Starbucks wants to refresh its customer experience through â€Å"transformations†, a low-price strategy should not be a regular practice to preserve the Company’s premium brand. Starbucks may also explore a multi-branding strategy for sweet and milky coffee drinks by creating a new brand for this beverage line to mitigate confusion with the espresso style of its coffee. Furthermore, the Starbucks may consider developing a new concept for these drinks as opposed to the traditional one in order to emphasise on its diversity in product offerings. Starbucks’ brand equity should be fiercely protected by ensuring the consistency of its strategies with its brand image. Finally, Starbucks should prudently structure the deal terms with Green Mountain to maintain a reasonable level of profit margin based on its financial benefits from the deal. To keep Green Mountain committed to the deal, Starbucks may want to include a non competitive agreement which prevents Green Mountain from packing and distributing its own coffee and a restrictive clause which limits the number of deals from other coffee retailers Green Mountain can have. Apart from balancing the costs between packed coffee and in-store brewed coffee, the Company should create marketing campaigns where it reminds customers of its complementary products. 5. Risk prioritization for Starbucks Risks| Category| Likelihood*| Severity*| Score| Rank| Risk of losing market share due to stiff competition| Strategic| 5| 5| 25| 1| Commodity price risk| Financial| 5| 4| 20| 2| Currency risk| Financial| 5| 3| 15| 3| Supply chain disruption risk| Operational| 3| 5| 15| 4| Risk of changes in consumer preference | Strategic| 3| 4| 12| 5| Risk of failure and breach of security of IT systems | Operational| 2| 5| 10| 6| Product liability risk| Operational| 4| 2| 8| 7| Risk of Non-Compliance with Laws and Regulations| Operational| 2| 3| 6| 8| Risk of loss of key personnel| Operational| 1| 6| 6| 9| Natural hazard risk| Hazard| 1| 3| 3| 10| * Scores range from 1 to 6, with 1 as least likely/severe and 6 as most likely/severe. 5. 1 Risk of LOSING MARKET share due to stiff competition Starbucks experiences direct competition from large multi-national competitors in the quick-service restaurant sector and specialty coffee shops. Other than that, the company’s coffee beans, beverages and Starbucks VIA Ready Brew also face competition from well-established companies in the US ready-to-drink coffee beverage market. For instance, McDonald’s was voted to have the best coffee by Consumer Reports. The finding might come across as surprising since coffee is Starbucks’s main specialty. This would thus threaten the company’s market position since fast food restaurants are now capable of producing better coffees. All these fierce competition would easily erode the competitiveness of Starbucks. However, consumers’ choice of specialty coffee retailers depend on many factors such as quality, service, convenience, price and brand loyalty. With strong marketing and word-of-mouth, Starbucks would most likely retain its foothold in the specialty market in the near future. In addition, the company consistently conducts reviews to ensure positive consumer experience and have strong corporate social responsibility programs. The Starbucks brand has been highly rated in several global brand value studies. Diversification to capture related markets such as venturing into the instant coffee market was one approach the company has adopted in recent years. Hence a rating of likelihood 5 and severity 5 was assigned. 5. 2 Commodity price risk Starbucks purchases commodities such as coffee beans, dairy products and diesel for the company’s operations. Such commodities are highly subjected to price fluctuations due to predominantly supply forces. These price risks would substantially increase the expenses of the company and might in turn negatively impact Starbucks’s financial results. However, Starbucks engages in hedging using financial derivatives such as coffee futures to reduce the impact of such risks. Hence, likelihood of commodity price risk was assessed to be 5 and its severity as 4. 5. 3 Currency risk Although the majority of Starbucks’ revenue, expense and purchases are transacted in US dollars, a significant portion of Starbucks’s operations are also outside the US. As a result, the company faces currency risk from mainly the Canadian dollar, British pound, Euro, and Japanese yen. To reduce the company’s exposure on foreign exchange risk, Starbucks hedged its revenues, inventory purchases, assets, and liabilities denominated in foreign currencies. Thus likelihood of the currency risk bears a rating of 5. Severity was assessed at 3 since a weakening dollar would greatly impact earnings; there have been a few monetary policies put in place by the US Central bank in recent years which are causing the weakening dollar. However, due to Starbucks’ presence in many countries worldwide, any fluctuations in one currency will naturally be offset by the strengthening of another. Thus its impact would not be too severe. 5. 4 Supply chain disruption risk Starbucks faces high likelihood of supply chain risk which is beyond the company’s control. For instance, there could be unexpected disruptions with regards to the company’s roasting plants or interruptions in service by shipping carriers within the company’s distribution channels. There is also the likelihood of trade restrictions such as increased tariffs or quotas, embargoes or customs restrictions. These events will significantly impact the production or distribution process and in turn, cause Starbucks to be unable to meet consumer demands. At the same time, fair trade issues have led to much displeasure amongst the activists in the recent years and their actions might threaten the company’s supply of coffee beans. Due to the nature of the supply chain which could face various forms of disruptions, we assign a likelihood of 3. A severity rating of 5 was given since it will affect Starbucks’ key operations and have significant impact on the company’s financials. 5. 5 Risk of changing consumer preference As aforementioned, there is the risk of changing consumers’ preference, especially in the specialty coffee market where consumer choices rely on many factors. Health concerns would be one apparent area that would impact Starbucks in the upcoming few years. Most of the company’s products contain caffeine, dairy products or other active compounds, which are increasingly coming under public scrutiny as there are adverse impacts resulting from large consumption. Also, other reasons such as obesity, as well as increased consumer litigation based on alleged negative health impacts of various food products are posing a problem to Starbucks and its coffee industry. Consumers might switch to other alternatives such as vitamin drinks, which would slowly reduce the demand for Starbucks’s products. However, Starbucks do take the changes in trend seriously and constantly try to change their products to suit consumers’ taste. Some measures have already been introduced with the health conscious consumer in mind such as allowing the substitution of milk in their drinks with soymilk. A likelihood of 3 and severity of 4 was thus assigned. 5. 6 Risk of failure and breach of security of IT systems There is a great amount of reliance on information technology in Starbucks’s operations for supply chain, in-store point-of-sale processing, Starbucks cards, online business and various other processes and transactions. The ability to effectively manage the company’s business and coordinate the production, distribution and sale of products depends significantly on the reliability and capacity of these systems. This is especially more so since Starbucks operates on a global basis. Any failure or security breach in the system could cause delays in product sales and reduce the efficiency of the company’s operations. In addition, capital investments might be required to remediate the problem. Thus, a likelihood of 2 was assigned, with a severity of 5 since systems are essential to Starbucks’s core processes and any failure will affect a significant number of outlets and all the operations. 5. 7 Product liability In recent years, Starbucks has recalled few of its products. For instance in 2009, the Consumer Product Safety Commission ordered a recall of thousands of Starbucks coffee blade grinders and glass water bottles, which allegedly posed a laceration hazard to consumers. Another incident was Starbucks’s recall of a few products containing peanut butter from its stores following an outbreak of salmonella in the US. Product recalls would generally hurt the value of the corporate brand and thus might reduce the demand for its products. Starbucks operates in the food and beverage industry, such product recalls are common and a likelihood rating of 4 was assigned. A severity rating of 2 was assigned as Starbucks has prompt voluntary recall responses as evident in the incidents mentioned above. It will thus keep the severity low as damage was kept under control. . 8 Risk of Non-Compliance with Laws and Regulations  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   There are strict compliances with regard to applicable laws, accounting and reporting requirements, regulations and tax requirements, including those imposed by the listing exchanges and labour laws for St arbucks to adhere to in the countries that it operates in. Any breach of regulations might result in penalties that might harm Starbucks financially. In addition, there might also be damage to the company’s reputation especially if the company incur civil and criminal liability. Compliance fees pertaining to labour law was an example that affected Starbucks. The minimum wage rate in US had remained $5. 15 per hour since 1997 but rose to $7. 25 an hour from July 2009. Starbucks employed about 142,000 people in the US as of 2009 year end and this increment in labour costs could increase overall costs and affect the companys operating margins when complied with. However, regulatory changes generally happen gradually and with warnings. Starbucks should have risk response plans in place by the time regulations take effect. Hence, a rating of 2 for likelihood and severity of 3 was given. 5. 9 Risk of loss of key personnel Starbucks’ future success depends on the continued service of senior management personnel and any loss of key executive management personnel can harm the company’s business. For example, Howard Schultz, one of the early founders of Starbucks left and was invited back to be the CEO when the company faced some problems in 2008. This shows how important key personnel are to the growth and survival of a company. As such, Starbucks need to ontinue recruiting, retaining and incentivising key management personnel to maintain and carry out operational initiatives, some of which involve ongoing expansion in business channels outside of the company’s traditional company-operated store model. Because of the continuous training and the incentive measures the company has put in place, the likelihood of key personnel leaving bears a rating of 1 but the severity is rated at 6 giv en the necessity of maintaining the talent pool at Starbucks for its continued success. 5. 10 natural hazard risk With close to 17,000 stores currently, Starbucks has coffee outlets in more than 50 countries. Natural disasters are inevitable and black swan events might impact the operations and financials of the company. For instance, in the recent 2011 earthquake in Japan, 50 stores in Japan were destroyed. However, a severity of 3 was assigned on the overall impact of this risk since a disaster would cause a significant amount of disruptions to outlets but only in affected regions; whereas its other outlets across the world would most likely be unaffected. Thus the strain on Starbucks’ financials would not be too severe. Also, a likelihood of 1 was assigned since natural disasters are not expected to happen on a regular basis. 5. 11 Risk Map Severity| High| 6| Risk of Loss of Key Personnel| | | | | | | | 5| | Risk of failure and breach of security of IT systems| Supply chain disruption risk| | Risk of loss of market share due to competition| | | Medium| 4| | | Risk of changing consumer preference| | Commodity price risk| | | | 3| Natural hazard risk| Risk of Non-Compliance with Laws and Regulations| Currency risk| | | | | Low| 2| | | | Product liability risk| | | | | 1| | | | | | | | | 1| 2| 3| 4| 5| 6| | | Low| Medium| High| Likelihood| Legend| Risk response| | Risk avoidance / elimination| | Risk reduction/ prevention| | Risk transfer / sharing| | Risk acceptance| 6. Risk Responses and control devices/activities Operational Risk | Risk Map | Risk Response | Control Activities | Loss of key personnel * Risk of inability to recruit, retain and motivate senior management personnel sufficiently to main tain and expand current operations | Likelihood: 1 Severity: 6 Appropriate risk response: Prevent /reduce | To reduce severity: * Cross functional management (possibly achieved through job rotation) * Ie. Someone should be able to replace Howard Schultz as the current main force behind Starbucks * Management trainees of Starbucks have training covering all aspects of store operations including baristas’ job scopes, not to be cross functional, but rather to have a better understanding of the company’s operations. Besides store operations, the management trainees ought to rotate within other functions such as logistics and finance. * Top level performance appraisal of cross functional abilities of senior management personnel and ensure periodic function / international rotation is carried out among senior management * Annual international meetings for senior management personnel to ensure all are aware and updated of the latest activities and concerns of the company through discussions | | | To prevent / decrease likelihood: * To attract: Competitive compensation benchmarked to market rates * To recruit: Stock options granted with vesting periods and longer period employme nt contractual agreements with heavy penalties for walking away early * To motivate: Clear career prospects with high potential for future development made known to employees and awards for employees with best performance at store and company levels | * Compensation committee to propose and enforce competitive compensations plans with favourable terms and conditions to retain and attract talent * Human Resource Department Head to ensure maintenance of clear career progression within the company and conducting of regular employee job satisfaction surveys * Clear career progression can include communicating Key Performance Indicators (KPIs) as progression criteria to employees as well as how they are monitored * Performance indicators to pinpoint departments with greatest resignation rate / staff shortage to better narrow down employee problem areas | Compliance with laws and regulations * Risk of failure to abide with all applicable laws and regulations of the countries the company operates in | Likelihood: 2 Severity: 3 Appropriate risk response: Transfer /share | To transfer/share risk: * Outsource compliance to external professionals – contractual transfer of risk control * Consider Joint Ventures (JVs) or partnerships with local companies when entering a new market (country) as they are more familiar with their home regulatory environment – contractual transfer of risk control | * Outsourcing mandates a need for continuous monitoring of quality of services received which will determine if company outsourced to should be changed * Top level reviews of cost benefit analysis of JVs and partnerships as well as rigorous screening of potential company candidates * Currently, Starbucks claim to be very â€Å"picky† about their international company partners | | | (Possible consideration) To prevent / decrease li kelihood: * Ensure compliance and legal personnel are competent with updated knowledge of operating countries’ regulatory environment | * Top level reviews of competency of compliance and legal personnel * Management to oversee compliance and legal personnel work closely with risk officers and internal audits to build effective intern