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Legos free essay sample

When approached what they need for a blessing, most adolescents would state a CD, or perhaps an iPod, however I need Legos. I got my first s...

Thursday, October 31, 2019

Park plaza county hall london Essay Example | Topics and Well Written Essays - 3000 words

Park plaza county hall london - Essay Example This has resulted to a rise in the level of customer satisfaction. Different scholars of the world have described the state of the UK hospitality market as ‘fast-changing’. This means that the particular hotels in this industry have to race to keep up with the pace. The fast changing nature of this industry has further been attributed to the technological advancements of the world. The different hotels have to therefore direct more of their resources and time to the emerging technology-based techniques and communication platforms such as social media to remain appealing to the evolving demographics of the world. Newer market segments continues to emerge in the hospitality industry in UK what has perpetrated the changes experienced in the market where most customers today are going for fast, better and more personalized services. London continues to be viewed as the ‘growth engine’ of the hotel sector in UK following the high number of hotel businesses located in the city. Hotel business in London is appealing following the fact that London it is a major tourist destination. Throughout the year, London experiences influx of visitors from all parts of the world. This has resulted in a boom in the hotel business in the city. The main objective of this market report is to evaluate the market operations of Park Plaza County Hall London hotel through use of specific market analysis tools; PESTEL analysis and market mix-7Ps and how the market operations impact the hotel business of Park Plaza County Hall London hotel. This market report was commissioned to specifically examine the role and contributions of marketing to the success of a business by looking into the operations of Park Plaza County Hall London hotel in the UK hospitality industry. It further offers specific recommendations that can adequately be integrated by the business to enhance its performance within this industry. According to Baines and Page (2010, p.

Tuesday, October 29, 2019

Final Writing Assignment Essay Example | Topics and Well Written Essays - 500 words

Final Writing Assignment - Essay Example The statement is so true as evidenced by the breach of terrorists over the American airspace undetected and resulted to the destruction of the Twin Towers of the World Trade Center, an institutional landmark of the country, that killed thousands of innocent people. Scheuer stated that Bin Laden believes that the foreign policy of American is an attack on Islam. Bin Laden, through his Al Qaeda group was pinpointed to be responsible for the 9/11 attack – precisely the group that was being governed by Scheuer. Scheuer’s remarks are disturbing as they are validated and supported through his years of experience as an officer of the CIA. His contentions about Bin Laden as a threat to America at the time he was heading the unit was so pronounced and yet, according to him, there have been precisely 10 times when killing Bin Laden was possible but not ordered by then Presidents Clinton and Bush. As clearly identified, he noted that there were two opportunities to kill Bin Laden in May of 1998 through CIA resources and eight times in 1999 through US military aircraft but the President did not clearly order the attack. Missing these opportunities paved the way for Bin Laden’s ability to prove that America can be attacked in their own soil without the need to immediately respond and identify the attackers.

Sunday, October 27, 2019

Threat Of Substitutes And Bargaining Power Of Customers Marketing Essay

Threat Of Substitutes And Bargaining Power Of Customers Marketing Essay As mentioned earlier in part 1.3, I will be using Porters Five Forces to analyse the external environment to obtain a comprehensive understanding of a given industry. My focus here will be the fast food industry. BK is my chosen company to evaluate the effect of globalisation has upon fast food industry. The analysis will be done in four areas as below and there may be some overlapping of points as they can be interrelated. There are six major sources identified as barriers to a market entry which include economies of scale, product differentiation, capital requirement, switching cost, access to channels of distribution and government policy (Porter, 1980). All these have had impact on BK especially as from the point of view of globalisation. In my observation, it is very possible to open one or two outlets but to globally have a chain of outlets with the same branding requires tremendous capital requirements. Thus globalisation has directly impacted BK in the way it structured its business model through franchising. BK could afford to do so as with agreements such as US- Canada Free Trade Agreement and North American Free Trade Agreement (Reference for Business, 2010). BK took advantage of the relative free flow of resources under globalisation to expand globally. Franchising is a relative low cost and low risk business model. Most of the US franchisors often use this method to enter a new market with diverse economical, cultural and political environment (Alon, 2006). For instance, 88% of BKs restaurants worldwide are franchised in fiscal 2009, contributing to $412.5 millions of total revenue globally (Burger King Holdings Inc., 2009). Franchising enables the business to develop in an unfamiliar market relatively quickly on a larger scale, allows the use of local partners who are familiar with local environment and also to create a standardised, global brand image, generating marketing economies of scale (McDonald et al., 2002). Charts below will provide further information on BKs franchise restaurants. Chart 1: Percentage of BKs Franchise Restaurants and Company Restaurants Worldwide ( Burger King Holdings Inc.,2009; SEC Info, 2007) Chart 2: Revenue Breakdown From BKs Total Revenue Worldwide (Burger King Holdings Inc., 2009) However with globalisation, competition is globalised and relentless. McDonalds is actually BKs largest competitor as it provides better menu variety with more valuable and affordable prices (CNN.com, 2009), biting into BKs revenue by securing a larger market share. McDonalds is also more a pioneer compared to BK because it opened its first restaurant in 1940 (Spiritus-temporis.com, 2005) compared to BK with its first restaurant in 1954 (WikiAnswers, 2010). Being a pioneer, McDonalds has many advantages which includes entrenchment of position in consumers minds, creating higher thresholds for later entrants in terms of quality, advertising and distribution support, enjoys long-term market share advantages and reputation benefits (Gass et al.,2003). It is the effect of globalisation where McDonalds has built around 32,000 outlets in more than 117 countries (McDonalds Corporation, 2010). With its expansion into international markets, the company is famous throughout the world and is the leader in this industry followed by BK only at second place. The difference in number of outlets worldwide which also translates into sales volume differences between these two fast food chain can be seen clearly in the diagrams below. Chart 3: The total number of restaurants worldwide for BK and McDonalds. ( Burger King Holdings Inc.,2009; McDonalds Corporation, 2009) Chart 4: Comparison of Sales Revenues Between BK and McDonalds (Burger King Holdings Inc., 2009, McDonalds Corporation 2007; 2009, SEC Info, 2007) Based on the charts, McDonalds is approximately 3 times larger than BK in terms of outlet and 10 times larger in terms of sales revenues. Substantial capital is also needed in terms of advertising to build up BKs brand. The advertising cost of McDonalds is approximately 8 times higher than BK thus creating a higher barrier entry when BKs brand name is lacking compared to McDonalds. To compete with McDonalds, BK needs more capital to increase its advertising as it is very much needed in globalisation to introduce BK in new markets and building up its image that they may otherwise not known about (Coulter, 2001). To ease comparison of the advertising cost, it is illustrated in chart below. Chart 5: Advertising cost of BK compared to McDonalds (Burger King Holdings Inc., 2009; SEC Info, 2007; McDonalds Corporation, 2007;2009) With these type of cost outlays, for other competitors to come into the same scale as these two companies is extremely daunting indeed, thus the threat of entrants is low, though for smaller players is possible to find niches that are under or not exploited as yet. Luckily the advertising costs have resulted in branding, which builds a better image globally and flows ultimately into higher sales and profitabililty. Table below provides Best Global Brand Ranking 2009 highlighting few of BKs major competitors and where BK succeeded in positioning its brand among top 100 in year 2009. 2009 rank 2008 rank brand country of origin sector 2009 brand value ($m) 6 8 united states restaurant 32275 61 64 united states restaurant 5722 79 81 united states restaurant 3876 90 85 united states restaurant 3263 93 new united states restaurant 3233 Table 1: Best Global Brand Ranking 2009 (Interbrand, 2009) It is clear that BK lags behind McDonalds though in many ways this is to be expected given its much lower advertising cost outlays, which besides outlet costs, form a significant barrier of entry as mentioned earlier. 3.1.2 Product Differentiation With globalisation, BK differentiates itself from other fast food giants by acknowledging culture and country specific needs. For instances, Pork-based Bulgogi Burgers are offered in korea and the ultra-spicy Rendang Double in Singapore (Wikipedia, 2010). Picture 1: Pork based Bulgogi Burger Picture 2: Rendang Double (flickr.com, 2008 ) (therealnurulle.blogspot.com, 2010) BK also keeps its promise of Have it your way with customers having 221184 possible ways of ordering a Whopper meal (Swabey, 2007). This will help to ease its penetration into new market with different local conditions. BKs response to globalisation is obviously to cater to local tastes, as the pictures above testify. Another response to globalisation has been the move towards becoming more healthy by offering healthier menu with less salt and also with its product innovation to provide food with higher nutrition contents. At all times, BK is trying to differentiate itself to meet customers demands. Further details regarding food offerings will be mentioned in later part. 3.2 Threat of Substitutes and Bargaining Power of Customers Various global fast food chains have successfully make inroads in diverse market settings around the world (Watson, 2006). These restaurants stand the most conspicuous symbol of globalisation and modernity in countries worldwide (Wilk, 2006). Hence, they are often viewed as the cutting edge of emerging global consumer culture which have caused societies worldwide to become increasingly homogeneous and deterritorialised (Friedman, 2000). Although the expansion of Western quick-service eateries outside America and Europe has done much to transform established notions of service, taste and lifestyle (Schlosser et al., 2001), their spread has also given rise to rival domestic chains whose extensive knowledge of local preferences offers real advantages in attracting and retaining customers (Matejowsky, 2008). It is the strong bargaining power of customers which intensify the competition among various food chains with more substitutes available. To deal with these forces on a global basis, BK resorted to differentiate itself through innovative marketing and menu items. 3.2.1 Innovative Marketing BK has adopted a strategy which helps to differentiate them from their competitors. The company appointed TMP Worldwide Advertising Communications to create an exclusive company-wide employer branding campaign based on the concept Fun with a Future which concentrates on brand recognition, employee engagement and delivering on brand promise. BK decided to differentiate itself through its product and people with its employee as brand ambassador where all employees at all levels are linked to the company brand featuring in BKs advertisements and posters (Business and Finance Week, 2008). This is in line with the concept of globalisation where people of different races, culture and family background will have a common global identification as BKs brand ambassador. Pictures below feature BK employees who are of different races and cultures. Picture 3: Employees of BK in Tokyo Picture 4: Employees of BK in U.S. (associatedcontent.com, 2010) (farsons.com, 2010) BK also uses a creative marketing strategy by building an edgy, hip image with young men, who are targeted consumers (Jargon, 2006). For instance, in November 2006, BK began offering BK Xbox and Xbox 360 games with their value meals. After one month, 20 million of BK Xbox games had been sold. The games could only be bought with a value meal which means that BK attracted a lot of customers with this promotion, earning a nice profit from it. Comparing with BK, McDonalds on the other hand only places Nintendo mascot toys in their Happy Meals (Mattie, 2007). A picture of both BK Xbox and McDonalds Nintendo toys can be seen below. Picture 5: Burger King Xbox Picture 6: McDonalds Nintendo Toy ( blogs.ft.com, 2006) (toadcastle.net, 2006) The successfulness of BKs innovative marketing was already proven in 1999 in a TV campaign where Whopper was proclaimed as Americas Favourite Burger. That claim was based on the result of a research where 700 consumers were asked to name their favourite burger. 33% of them picked Whopper and only 12% chose McDonalds Big Mac (Cebrzynski, 1999). Having innovative marketing is a response to the threat of substitutes and bargaining power of customers as BK tries to embed itself on consumer consciousness globally. 3.2.2 Menu Options and Changes BK tries to reach out more customers through its menu to reduce threat of substitutes, which of course with globalisation is a full time and relentless force. As mentioned in part 3.1, health consciousness was rising among people with the obesity crisis hitting globally. It was found that United States tops the hierarchy for obesity with 30.6%, followed by Mexico and United Kingdom with 24.2% and 23% (NationMaster.com, 2010). Even though BK tries to blunt customers bargaining power and the threat of substitutes through aggressive marketing as seen above, in truth they are obviously much stronger with no switching cost. New Products Thus a response from BK is to try to be almost all things to customers. For instance, provide healthier food options. The company in its social responsibility statement promises to work with its trained chefs and nutritionist to develop new menu options that meet customers nutritional needs globally (Burger King Holdings Inc., 2010a). BKs efforts could be seen when it unveiled a healthy eating adaptation of its Have It Your Way strategy where posters in restaurants tell customers how to order a low carbohydrate, low fat and low calorie meal (Walker, 2004). The famous Whopper can also be served without the bun, mayonnaise and ketchup (MacArthur, 2004). BK also launched a new salad line offering shrimp and sirloin steak with grilled peppers and onions on it (Walker, 2004). Besides, health drive was initiated by BK by reducing salt and fat content in burgers and fries. Even children are targeted where childrens menu also comes with a choice of apples or grapes, milk or fruit juice (Forte, 2006). In 2008, BKs kids meal underwent makeover with the introduction of apple fries as part of the meal (Burger King Holdings Inc., 2010b). A list of BKs healthier options with their calorie contents are provided in Appendix 3. Pictures below show two healthy options from BK. Picture 7: Kids meal with Apple Fries Picture 8: Bunless Whopper (fastfood.ocregister.com, 2009) (hungry-girl.com, 2010) In addition, BK also later launched its Joe Coffee. This made-to-order coffee processed from 100% Arabica coffee beans (The Franchise Mall, 2005). This is actually a response to global economic crisis where it was found that consumers were trading down from more expensive coffee such as starbucks into lower ranking choices, providing a perfect option for BK. Thus even though globally the economic situation was dire, for instance it was found that 2009s world economic growth rate was only half percent (International Monetary Fund, 2009). BK found a new market segment to exploit to further reduce the threat of substitutes and bargaining power of customers. Latest initiatives include where in February year 2010, BK decided to replace its own coffee brand BK Joe with Seattles Best Coffee, a brand owned by Starbucks to increase falling sales by improving its product offerings (Tice, 2010). Pictures below show BKs Joe Coffee and its replacement, Seattles Best Coffee. Picture 9: BK Joe Coffee (ebay.com, 2010) Picture 10: Seattles Best Coffee (myalohavibe.com, 2010) BK also imitated a McDonalds breakfast item. BKs Breakfast Muffin Sandwich was promoted through an advertisement where a cleverly disguised BK breaks into McDonalds Headquarters to steal the Top Secret Blueprints for the Sausage McMuffin With Egg (Dave, 2010). Picture below shows the contrast between the two breakfast offering from McDonalds and BK. Picture 11: McDonalds Sausage McMuffin with Egg Vs BKs breakfast Muffin (davescupboard.blogspot.com, 2010) New Pricing It is not just menu changes were offered but also menu pricing as well. To meet the changing economic conditions as an impact of global recession, BK also announced that it will offer $1 double cheeseburger in order to gain market share back from McDonalds (Johnson, 2007). This has cause BKs franchisees to file a law suit challenging BKs right to dictate maximum prices as the products costs is at least $1.10 per sandwich (Glover, 2009). Thus even though BK tries to satisfy customers other stakeholders may not be happy, showing the complexities in managing relationships in the era of globalisation. Further in many ways, as seen in breakfast, and even in pricing, since the RM $1 cheeseburger, BK is imitating McDonalds. 3.3 Bargaining power of suppliers With globalisation, BK is required to maintain the quality of services in its restaurants worldwide. As a measure of quality control, BK will evaluate before approving the existing or potential manufacturers and distributors of food, packaging and equipment products used in the restaurants. Evaluation is done based on their delivery, timeliness and financial conditions. To ensure consistency, franchises are required to purchase their products from approved suppliers. (Burger King Holdings Inc., 2009). 3.3.1 Purchasing Power of BK Restaurant Services Inc. (RSI), a not-for-profit independent purchasing cooperative leverages purchasing power of the BK system in United States by negotiating the purchase terms for most equipments, food, beverages, toys and paper products used in the restaurants (Burger King Holdings Inc., 2009). RSI currently involves in the negotiation of purchase with BK for more than $3 billion a year in goods and services, managing supply agreements with over 300 suppliers and 27 distributors (Sterlingcommerce, 2009). For company restaurants and franchise restaurants in Canada, a subsidiary of RSI is responsible to purchase the products. However, there is currently no appointed purchasing agent that represents franchisees in other international regions. BK will work closely with their franchisees to implement programs that leverage their global purchasing power and to obtain lower product costs outside the United States and Canada. (Burger King Holdings Inc., 2009). Globalisation has increased the purchasing power of BK and therefore reducing bargaining power of suppliers with the ease of selection of suppliers who meet the company criteria 3.3.2 Suppliers of BK Food As a global fast food chain, it is important for BK to maintain its brand name worldwide. The image of the global brand could be destroyed in a day due to globalisation where news travels billion times faster than it used to be in the past. BK was labelled Murder King by animal activists forcing the company to implement new policies that are more closely monitor its suppliers. Thus by 2001, there were guidelines that require the egg suppliers battery cages to contain two water bottles, allowing the birds to stand upright and be at least 75 square inches (Detweiler, 2001). BK further discourages its suppliers from trimming chickens beak and breaking their wings to save packing space when transporting (Detweiler, 2001). Reports in media of one or more cases of food-borne diseases in one of BKs restaurant also negatively affect its sales worldwide when being highly publicised (Burger King Holdings Inc., 2009). During an earlier case in year 1997, BK cut off its ties with one of its biggest beef supplier, Hudson Foods Inc. as its beef supplies were contaminated with E.coli..Hudson voluntarily recalled the beef after the severity of E.coli contamination was discovered at its plant in Columbus, leaving some BK restaurants without sufficient beef supply for 24 hours to 48 hours (Papernik et al., 1997). Soft Drinks In fiscal 2000, BK decided to enter into a long term contracts with The Coca-Cola Company and Dr Pepper/Seven-Up Inc to supply all restaurants of BK in United States with their product (Burger King Holdings Inc., 2009). BK prolonged its long term liaison with The Coca-Cola Company as an approved soft drink supplier for its international region covering Greater Europe, Latin America and Asia-Pacific (PRNewswire, 2003). With the effect of globalisation, consumers in around 200 countries enjoy Coca-Cola products of more than 1 billions servings per day (The Coca-Cola Company, 2010). BK International President believes that with this renewed alliances, Coca-Cola Company, recognised as the worlds best known brand (The Coca-Cola Company, 2010) will help to grow the BK brand rapidly by providing the best burger experience to their consumers in all restaurants globally (PRNewswire, 2003). Getting into alliances with suppliers is a good way to also set up higher barriers of entry. From my analysis, bargaining power of food suppliers are strong but over soft drinks especially in terms of dealing with companies with strong brand name is weaker. Obviously, the extent to which the other party uses branding and distribution network as leverage globally as well. Employees Other than external suppliers, internal supplier is also an important piece of puzzle which without, BKs supplier network would not be complete. Hence, the bargaining power of its employees should not be shoved aside. BK had approximately 41320 employees in its company restaurants, field management offices and global headquarters as at 30th June 2009 (Burger King Holdings Inc., 2009). As mentioned in part 3.2.1, there are diversity of employees with different backgrounds, race, religion and cultures. It is clear that like globalisation, the factors in Porters Five Forces are interlinked and do not stand alone. The success of BK is highly dependent on its ability to attract general managers with necessary competences to be part of the management team to motivate the employees to sustain high service levels and maintain sales growth. The competition for the right employee candidates causes higher payment of wages featuring the high bargaining power of employees (Burger King Holdings Inc., 2009). However, where boundaries between countries became narrower and communication made easier with globalisation, the search for the right employee is more efficient and effective through online application, which could perhaps reduce their bargaining power. The selection of employees is important as a wrong choice would lead to negative publicity. In one of the cases, a BK employee in Jacksonville had tried to poison a customer as he was pissed due to his suspension for misconduct (Morbid, 2010). In another case, a Washington State Deputy, Edward Bylsma after discovering a spit on his Whopper ordered fr om a BK employee decided to sue BK seeking $75,000 of compensation (Ryan, 2010). No doubt with globalisation, these news would definitely spread fast and adversely impact the companys brand. Further, since a large portion of outlets are franchised as a result of BKs decision on this bus model to move globally, employees become even more important as front link assets to keep sales and profits up. With payroll expenses on the increase as seen in the chart below, it is clear that for employees, their bargaining power is, in my opinion, rated medium to high. Chart 6: Payroll and Employee Benefits for BK ( Burger King Holdings Inc., 2009) 3.4 Rivalry among Existing Competitors Globalisation has increased the competition among the fast food chain. With various quick service restaurants mushrooming worldwide, other than competing on a national or regional basis, they are competing with each other globally. As an effect of globalisation causing increases in degree of awareness among consumers, there has been intense competition among the competitors globally to gain market share. Increasing prices of raw material, agitation by social organisations, slow down of U.S economy and also increasing fuel prices has prompt many fast food chain to divert their attention to eastern part of the world especially China ( Naim, 2008). Although globalisation has ease the expansion of fast food chain worldwide with the ease of information transfer and seeking global suppliers, entry into China and other Asian countries still pose logistical and political challenges. As quoted from Martin (1994) in Nation Restaurants news Among the most frustrating obstacles are the scarcity and inordinately high cost of prime locations in most markets as well as the steep tariffs and patchwork of inconsistent regulations that impede imports of commodities and equipment. 3.4.1 New Geographical Regions and New Ventures Taking a closer look, even though globalisation has blurred boundaries, there are still differences in cultural issues between United States and other countries resulting in different eating habits of consumers ( Glazer, 2007). From consumer point of view, globalisation has resulted from development of sophisticated media contributing to the creation of a borderless market but it does not mean it is without internal differences or local tastes (Ziedman, 2003). When a company goes global, they are bound to satisfy the demands of local customers. For example in India, cows are sacred and worshipped by the Indians, beef could not be served and the muslims, they could not consume pork (Kulkarni et al., 2009). Hence, it is a must to substitute the beef and pork in the product offerings. To further compete globally, BK invested in Whopper Bars. BK opened their first Whopper Bar in Orlando during spring 2009, and the first in Asia in Singapore during September 2009 (International Wire, 2009). It offers a specialised burger menu with more than 20 toppings (Ruggles, 2010). On 8th February 2010, BK further announced that beer sales will be added at a new unit opening in South Miami. ( Ruggles, 2010). BK changes may not be rapid enough to obtain further market share from McDonalds but the company has been spending more effort in improving its sales in this global competition ( Anderlini et al., 2010). Competing on a global scale gives rise to global income streams. This would help BK to sustain the worldwide competition where the profit from a restaurant would balance the loss in another. The pie charts below show the distribution of revenue from different geographical region. Chart 6: BKs Geographical Sales from Year 2007-Year 2009 (Burger King Holdings Inc., 2009) In a way, the company is more dependent on its home market, as showed in the pie chart above where most portion of global stream income is generated. In a recent case in 2009, BKs advertisement for Texican Whopper burger in Europe had angered the Mexicans where a small wrestler featured in the advertisement was dressed in a cape resembling a Mexican flag. Mexicans have high respect for their flag and therefore could not tolerate such an insult from BK ( The Assiociated Press, 2009). This adverse publicity could have adversely impact its profits. Still, the company had not done unduly badly as seen in the charts below. Chart 7: Revenue, Gross Profit and Net Profit of BK from Year 2005 2009 (Burger King Holdings Inc., 2009, SEC Info, 2007) It is clear that BK has done well as seen in increasing absolute figures of all sales, gross profit and net profit. A look at gross profit and net profit margin also shows that on a relative basis the company is handling itself well in the world of globalisation. Chart 8: Gross Profit Margin and Net Profit Margin of BK from Year 2005- 2009 (Burger King Holdings Inc., 2009, SEC Info, 2007) Even though Gross Profit Margin has been decreasing slightly, its net profit margin has been increasing with a drastic improvement from year 2006 to 2007. This is definitely a good sign. 3.5 Conclusion and Recommendation Globalisation can be a threat to the company and also it may help its expansion. Being a global brand, BK has a lot benefits which include cost-efficiencies, sharing of resources and ability to attract partners, employees and customers on entering new market. It all depends how the company took opportunities and work towards their goals. Management of globalisation is the key to success and most importantly, BK need to balance between global and local control (Samli, 2008). The company has retreated back to the US market, which is why the share prices have been sliding back down in recent times as seen below. Chart 9 : BKs Share Price Ups and Downs from 2001 till 2010 ( Yahoo Finance, 2010) Recommendations made to companys performance are as follows: Moving In Developing countries, Especially India and China Aggressively: India and China both has a steady high economic growth rates of 8.8% and 10% in 2010 (India Brand Equity Foundation, 2010) and will probably be the major players in the world economy. It is definitely a wise option to expand BKs growth in these two countries by using local partners, local employees and local ingredients. Furthermore, BK could also offer limited promotions during festive seasons or special events, for instance during Chinese New Year or Deepavali as this will help to attract more customers during that period. Broader Menu Selection: As mentioned earlier in the project, BK should continuously provide more choices of menu which allow customers to pick from wider choices. This step should be taken to also reduce threat of substitutes from new entries and existing competitors. Its product offerings must also be ensured to meet the local taste. As mentioned by the officials of market research firm of the NPD Group, quick service operators who are expanding their brands outside the United States must customise each unit to meet the specific needs of consumers in the country and region they seek to enter (Glazer, 2007). Promotions and Advertising: As observed so far, BKs advertising has been giving positive impact on its sales. Hence, BK should continuously invest in its promotions and advertisement to gain market share. BK could perhaps invite its employees to give their opinion as they are also the brand ambassadors. This would allow a fresher and a more creative in flow of idea and to boost the motivation of the employees as they are invited to participate in the companys program. However, BK should avoid price wars with its competitors ie. McDonalds as this would pull down the profits of all burger chains. BK should choose to differentiate from its competitors. There is only one winner in cost strategy but there may be more than one winner in differentiation strategy. Relationships with Franchisees: There has been cases where the franchisees are not happy with the decisions of BK Inc..The most obvious example is the sale of doublecheese burger at $1. BK should strengthen its ties with the franchisees by encouraging them to provide ideas and feedbacks on how to improve sales. When there is a disagreement between them, BK should understand the reason behind and to solve it on a win-win situation. If this could be practised, law suit against BK Inc. could be avoided. In conclusion, Porters Five Forces Analysis that was used to analyse BKs stand in the industry gives a birds eye view of the company and industry globally. Globalisation plays a major role in pushing and shaping the company. The survival of BK is dependent on its ability to adapt to constant changes in business environment due to globalisation. With BKs effort in improving its performance, it will definitely survive in this field and could perhaps be the number one fast food chain worldwide in the future.

Friday, October 25, 2019

Tobacco Stuff :: essays research papers fc

The Tobacco Issue: The Tobacco Issue: Where the Responsibility Lies Political-Legal Issues: The legal and political issues surrounding the tobacco industry include whether or not tobacco companies should be held liable for tobacco-related deaths of smokers and those related to second-hand smoke, as well as whether or not elected officials should be accepting money from the tobacco industry in order to win elections. When deciding where the responsibility lies in the case of tobacco, the facts can be turned to favor either side on the issue. However, the tobacco industry has followed the government’s guidelines, since guidelines have been established, while the government seems to want to place blame for peoples’ habits on the manufacturers of products that people choose to use. Tobacco Litigation: The first issue to examine is the issue surrounding the use of the judicial system in finding responsibility for the epidemic surrounding the tobacco industry. The tobacco industry is the defendant in the majority of cases brought before the judiciary and, historically, the majority of the cases have been decided in favor of the industry. In a landmark case in 1988, the tobacco industry won a huge victory against Rose Cipollone. Ms. Cipollone died a horribly painful death from cancer. The defendant in the case was Philip Morris. Philip Morris’ council argued that it was the woman’s choice to smoke. This woman had even testified that she had gone to church every Sunday to pray that she would not get lung cancer. She knew the risks involved with smoking and chose to continue smoking. Philip Morris won the case. (Byrne, 189-190). For years the tobacco industry won case after case involving cancer victims that had smoked. Even today, much of the litigati on by smokers has been decided in favor of the industry. In July of 1999 the Louisiana District Court, 19th District decided the case of Robert Gilboy et al. V. The American Tobacco Co., et al. in favor of the defense. The jury was not convinced that 45 years of smoking had caused Mr. Gilboy’s lung cancer. In the case of the Estate of Burl Butler, et al. V. Philip Morris, Inc., et al., the Jones County, Mississippi Circuit Court, 2nd District jury found the tobacco industry defendants not liable for the alleged second-hand smoke related wrongful death of Mr. Butler. This case was decided in June of 1999. An important win for the defense was gained in Kansas City, Missouri in May of 1999.

Thursday, October 24, 2019

Introduction To Marketing Essay

Describe how a selected organisation uses marketing research to contribute to the development of its marketing plans In this section of the unit the investigation of the marketing research used by Kellogg’s will be shown through thorough research and evaluation also how it links in to the development of Kellogg’s marketing plans. The Purpose of Market Research Marketing research is what informs business’s make decisions by helping it to understand the changing dynamics of its market. This involves finding out more about customers, competitors and the overall marketing environment. The purpose of doing this is to gather data on customers and potential customers. The pure definition of market research is systematically gathering, recording and analysing data and also about the issues relating to marketing products and services. There are two types of research’s that can be conducted: Primary Secondary These research can then be formed into either quantitative or qualitative Primary Research Primary research is data and information that the business has gathered first-hand and has not been gathered before. Internal primary research data sources include: Sales figures for the business’s own products Customer data held on a central database. External primary research methods include: Questionnaires and Surveys Interviews and Focus Groups Mystery Shoppers, And other observation techniques. Secondary Research Secondary research uses data and information that has been collected before, either from within the organisation which can also be seen as internal data or by another organisation which is mostly regarded to as external data. Secondary research is sometimes referred to as ‘desk research’ and sources include: Reports from sales and regional representatives Previous marketing research (internal) Trade journals and websites (external) Books and newspapers (external) Industry reports from industry associations and government departments (external) Census data and public records (external). This now M2-Explain the limitations of marketing research used to contribute to the development of a selected organisation’s marketing plans For this sector of the report I will be identifying and explaining the limitations of the market research methods used in the Kellogg’s investigation. This should give a clear overview of how Kellogg’s develop. In the case study I have been studying I have acknowledged Kellogg’s uses four junctures of market research to ensure they have examined a product collectively which enable Kellogg’s to develop they’re products better and to better the product to suit its target audience. Firstly, we have a very important sector of market research which is seen as discovery, it is vital to identify a set of new food ideas that would be suitable for developing a new Crunchy Nut product. Secondary research was conducted from Mintel and Datamonitor and was used to find out about innovation trends in the cereal market. It was also used to find out about new products, flavours and foods from around the world. Food developers at Kellogg’s used this information to come up with a number of new food ideas. Although secondary data is easy to access there are some limitations Kellogg’s need to take into consideration, this could be for instance the age of the documents and when the research had been operated. Also the size of the group the research was taken and how many people were involved. I have also accredited secondary research can be very vague and general this would prove difficult for Kellogg’s to make a decision. In market research there are different aspects a business can branch into, many in which are very beneficial. The next form of research Kellogg’s had fore taken was selecting the best concept for their product they ensured they could do this by overseeing a quantitative survey. This had then created specific statistical information that indicated that a new Crunchy Nut Bites idea was perceived as the most appealing amongst all the ideas tested. Although Kellogg’s manage to use the quantitative data  efficiently there can be drawbacks to us ing quantitative data, the main hindrance of quantitative research is the context of the study is ignored. Quantitative research does not study things in a natural setting or discuss the meaning things have for different people as qualitative research does. Another shortcoming is that a large sample of the population must be studied; the larger the sample of people researched, the more statistically accurate the results will be. Once the conception was formed Kellogg’s then had a job conform and construct the concept into a new product this involved usage of qualitative research which helped Kellogg’s food technologists to explore the taste and texture of the new food idea in more detail. Kellogg’s needed to understand the ‘eating experience’ of the consumer before a decision could be made about how to develop the recipe in more detail. Kellogg’s needed to take in to consideration even though the qualitative would help they’re market research they may be some downfalls, for example the researcher of the study is heavily involved in the proce ss, which gives the researcher a subjective view of the study and its participants. The researcher interprets the research according to his or her own biased view, which skews the data gathered. Another disadvantage is that this research method is very time consuming and can last for months or even years. Finally, it is always important to ensure the financial side of the product are understood and the product brings in a good profit also it is a good idea to set promotional prices to enable the customer to have a taster of the product. This meant Kellogg’s were required to predict a forecast of the product, Kellogg’s do this by undergoing one final test prior to the new product launch. This is called the ‘In Home Usage Test’. The consumers are given the product to try for several days and this enables Kellogg’s to capture how consumers interact with the product for the first time. As well as this being a very good technique to understand the consumer they can be negatives to this the obvious problem Kellogg’s would be facing is that markets are unpredictable. Any sales forecast, however rigorous its analysis of conditions, can be fla t-out wrong. Sales forecasts fall into two basic categories, each of which has distinct disadvantages. In this case this is a qualitative forecast so sales forecasts rely on experts’ opinions to predict upcoming sales performance. Which may be detrimental to Kellogg’s because qualitative approaches is subjective therefore opinions, even well-informed  ones, can be wrong, especially if they don’t take into account relevant economic data. After overseeing Kellogg’s market research although the major drawbacks Kellogg’s can face, market research is very important for Kellogg’s as it previews what Kellogg’s can stumble upon when launching a new product. However market research that is gathered by any organisation could prove to be irrelevant and inappropriate. D2-Make justified recommendations for improving the validity of the marketing research used to contribute to the development of a selected organisation’s marketing plans. After looking at all the limitations that effect Kellogg’s this has entitled me to make justification and recommendation for improving the validity of the marketing research used in Kellogg’s. Consequently I will be making three comprehensive recommendations with justifications to improve validity of the market research used to contribute to the development of Kellogg’s marketing plans. Market research is used by many organisations and is very fatal tool; however the data collected can sometimes not be as valid for various reasons, resulting in a business to make the wrong decision and highly affecting its market plans. The first recommendation I would like is to discuss to enhance the validity of the market research is for an organisation like Kellogg’s to choose the right amount of people to question. Kellogg’s main objective is to improve their current product and to continue to create new products in order to carry this out they would have to carry research to find out what they lack in and what they need more of however if the amount of people questioned is too small the results would be invalid and will not do any justice to statistic therefore Kellogg’s should make the sample random and larger this will increase the accuracy of the information leading to the right decisions, Kellogg’s also need to be aware of setting themselves a goal and objective they would like to reach when choosing a people to take part in their research this increase validity as it gives and aim of what is required from conducting this research Secondly, I would like to recommend if Kellogg’s ask specific and objective questions, the people Kellogg’s survey should represent a cross-section of their target groups. This can extend the results to the whole group as long a s Kellogg’s sample is representative. Key factors in this matching process are sampling time and number of people  surveyed. For example if they were to launch a new product of a similar range they need to question what they feel is missing from the existing products they can do this by asking feedback of existing customers this will make the data more valid and reliable because the right questions have been asked. Finally I would like to propose to Kellogg’s to avoid self-selection and use a valid samples with a representative view of Kellogg’s target group are based on random selection. If Kellogg’s allow survey respondents to decide whether to answer a survey, Kellogg’s can’t be sure the respondents represent a random sample. You have to pick survey respondents at random and classify those who don’t answer the questions as â€Å"did not respond.† If the non-responsive group is substantial, reducing it by adding people who volunteer adds self-selection bias to the result because the volunteers are likely to share characteristics not demonstrative of your whole target group. Kellogg’s may have to change how you conduct the survey to get enough samples from a random selection. All of the above suggestions are to improve the validity and reliability of market research used by Kellogg’s; however Kellogg’s should also make sure that the question it uses match its research objectives to ensure that information collected contributes to the development of its marketing plans. Recommendations mentioned above will improve the validity of the research and accuracy of the information that will help the business make the right decisions based on the information collected and results of the research.

Wednesday, October 23, 2019

Overtime vs Hiring: A Case Study Essay

Abstract This report aims to address the debate over whether it is more beneficial to hire new employees when faced with shortages, or cover the shifts with overtime. The issue is examined from the viewpoint of Columbia University’s Department of Public Safety, and takes into account factors and costs as found therein. This report includes a graphical comparison of the costs associated with each option, and analyses and discusses the greater expense of hiring. One of the most debated topics in management is whether it is more beneficial to hire new employees or pay overtime to increase production or coverage. Many factors go into this decision, including benefits, duration of the period of extra work needed, and even type of work involved. In Columbia University’s Department of Public Safety, this issue gets more attention than at most places of business. Minimal staffing levels, union regulations, and round-the-clock posts – among other factors – conspire to make this decision one that is faced often. When all factors are considered, is it better for the department to hire new officers when coverage is lacking, or to utilize overtime to staff positions as needed? Executive Summary In almost all instances, it is more cost-efficient to fill gaps in coverage with overtime rather than hiring new officers in this department. This report will examine the factors involved, analyze the financial implications, and discuss exceptions to the findings. Explicit and implicit costs to the department will be discussed, along with their relevance to the decision-making process. This report will also compare the costs of new hires and overtime to find an equilibrium point beyond which the decision should change, and introduce the concept of diminishing returns. Finally, it will summarize the process and discuss application. Definition In Columbia University’s Department of Public Safety, there is a minimum level of on-duty staffing required at all times. Department employees are licensed, uniformed personnel belonging to the Transit Workers’ Union, Local 241. Management is required to ensure sufficient coverage on a daily basis, while conforming to the guidelines of the collective bargaining agreement. Sick time, vacation time, requests for guard services or special details, and emergencies such as natural disasters can create shortages in coverage that need to be addressed. Failure to cover these openings is not an option, and so management is left with two choices: hire additional full-time personnel to cover the openings, or pay overtime – at the rate of one-and-one-half times normal salary. Spending large amounts on overtime raises concerns in multiple areas, such as yearly budget reviews and union negotiations. This report aims to examine the issue in depth, and decide which option is mor e fiscally appropriate in a given situation. Factors and Costs As previously mentioned, there are numerous factors that influence this decision. The following are the most critical points that must be considered: * Department employees are unionized. Due to contractual agreements, the department must maintain all currently occupied positions. Any vacated position must be filled, somewhere in the department; for example, if an officer resigns, the department must fill that vacancy, whether in the same position or laterally, or be found in violation of the collective bargaining agreement. * Note that this is regardless of shortages, and only applies to permanently vacated positions. If the department has three extra officers on a given tour, and one resigns, the department may not continue to operate with two extras; rather, it is necessary to hire a new third extra. If an officer goes out on extended disability, however, it is not contractually necessary to fill that opening. In these cases, the department can cover the shortages, if any, through other means. Hiring remains an option, but the mandate to retain positions applies to newly created positions as well. In effect, if a new officer is hired in this situation, and the disabled officer returns to duty, the department is now obligated to keep both positions filled permanently and has a new minimum level of staffing. * New hires are paid at a rate of 80% salary for the first two years, then 82.5% the third year, 85% the fourth year, then 100% from year five on. * Overtime is paid at one-and-one-half times salary for any work done beyond 40 hours in a week. If an employee works a shift during all 7 days of the pay period, work done on the 7th day is paid at twice salary. * Any mandatory overtime performed without at least one hour of advance notice is paid at double time. This is relevant because when electing to not cover openings with additional personnel, any emergency shortages could lead to mandatory overtime without notice. * Most posts on campus require continuous coverage 24 hours a day, 365 days a year. This means there are three distinct tours with their own unique dynamics for coverage. The 8Ãâ€"4 tour, for example, has the highest concentration of senior officers, meaning they accrue more vacation time than junior officers. The summer months are obviously prime time for vacation picks, and two officers are allowed out at a time during summer. This means that summer vacation time is booked solid on the 8Ãâ€"4, so the tour is perennially short two officers all summer. Also, as a medical research facility in addition to a university campus, there are more posts open during the 8Ãâ€"4 tour than any other. As a result, it makes a difference where the shortage occurs. * Shortages on the night tours are easier to absorb, because there are fewer posts, but there is also night differential to consider: any officer working between 4pm and 8am makes an extra stipend of $1.80 per hour for night differentia l. As a fixed bonus separate from salary, however, night differential has no impact on this decision, as shown later. * New employees must be trained for a minimum period of one month before being able to assume post unsupervised and unassisted. This not only reduces the utility of a new hire for the first month, but also reduces the utility of the officers assigned to train him or her. * The department provides, as a service, officers for hire on campus for special events. The department charges $50 hourly for this service per officer assigned. If there is extra coverage on the tour during which the guard service is requested, an officer may be reassigned from a non-mandatory post, at a significant savings to the department. By using already assigned personnel as opposed to paying overtime for another officer in addition to the scheduled non-mandatory officer, the department can significantly reduce the overtime budget. For the purposes of this report, it will be assumed that no overtime is covered in this way, to preserve an empirical comparison of salary costs. * Officers are paid hourly, and thus are a variable labor cost. If the amount of time worked during a pay period changes, the officer’s salary for that period will change accordingly. For the purposes of this report, it will be assumed that labor costs are fixed. All officers not assigned to overtime always work exactly 40 hours per week, and those assigned to overtime always work in increments of exactly 8 hours per additional shift. Docking pay for tardiness will be disregarded. * The department pays an amount equal to 37.7% of each officer’s salary for his or her benefits package. This payment remains in effect so long as the officer is on the University’s payroll, whether or not he or she actually works or is paid. Officers on vacation, sick leave, or disability still incur this cost. While the cost of benefits itself is highly relevant, and will be used extensively in analysis, the fact that disabled officers still incur this cost even when not being paid by the department is not relevant to this discussion. Measurement In trying to determine how best to fill coverage, the most obvious comparison is between costs of a new hire and overtime. As previously stated, overtime is equal to one-and-one-half times salary (S). Cost of overtime can therefore be represented by the equation COT=h(1.5S), where h represents hours worked. New hires, who incur a cost of 37.7% of their salary, have a cost of CNH=h(1.377S). New hires always have a starting salary of 80% of full pay, while officers working longer than two years have a gradually increasing pay scale. One eight hour shift of salary at the rookie wage scale is equal to $149.20. For a third-year officer, that rises to $153.84, then $158.56 for a fourth-year employee. Finally, upon completion of four years of employment, the wage scale tops out at $186.48. A new hire will always work 5 shifts a week, leading to CNH=5(1.377)(149.2), or CNH=1027.24. COT, on the other hand, varies based on how many shifts of overtime are required that week, and the seniority of the officer performing the overtime. Plotting those equations against each other leaves us with the first graph below, labeled Weekly Salaries, New Hires vs Overtime at Each Level of Seniority. As expected, officers receiving full pay cost significantly more to cover with overtime than any other officer, but even at that escalated rate, there would need to be shortages in excess of 3 positions per week to justify hiring a new officer. For all other levels of seniority, 4 shifts of overtime could be covered per week at a lower cost than one new hire. In order to simplify the situation, this report will henceforth take an average of the salary levels and assume that all officers working overtime earn that rate of pay. Weekly Salaries, New Hires vs Overtime at Each Level of Seniority After applying this assumption, full pay is removed as an outlier, and it becomes always less expensive to fill four shifts of overtime than to hire one new officer. Weekly Salaries, New Hires vs Average Overtime Rate for Day Shift As seen in these graphs, the presence of night differential increases cost equally across the board, and therefore has no impact on this decision. Weekly Salaries, New Hires vs Average Overtime Rate for Night Shifts Analysis The graphs provide striking evidence that new hires are significantly more costly for small to reasonable shortages, seemingly four or fewer per week. However, due to the nature of the department, this is an underestimation. Since all three tours need to be covered, and officers must contractually be assigned to a stable tour, each tour must have its own graph. It is clear in every graph above that if there are five or more shifts of overtime per week, it is always less costly to hire a new officer; this is not completely accurate. During a given stretch, if there were expected to be 6 shifts of overtime that need to be filled each week, but the shifts are distributed evenly, with two shortages per tour per week, hiring one new officer will not account for five tours of overtime, but two. As presented by Bob Thomas (2006, p.13), â€Å"adding officers does not automatically reduce an equivalent number of overtime hours by the amount of the actual hours worked.† Thomas explains that while adding officers reduces overtime, it also raises costs disproportionately in an example of diminishing returns, an effect found mirrored in the previous graphs in this report. In essence, hiring additional officers beyond a certain point will produce reduced utility with each new hire. Hiring additional officers will add utility, but at a much higher cost per unit of utility, creating an inefficient Summary The measurements set forth in this report clearly show that only the most extreme of shortages justifies hiring an additional employee from a cost-effectiveness standpoint, but this is not the only factor to consider. Most important among these is the contractual obligation of the department to hire a new officer each time a position is vacated. Fatigue is a concern that is often raised regarding the use of overtime to fill gaps in coverage. Steve Earley’s report for the Riverside Fire Department (2001, p.14) cited studies finding a correlation between the number of hours worked and work-related injuries. The department has already taken steps to mitigate this, as employees are prohibited from working longer than 16 consecutive hours, and are strongly dissuaded from working 7-day weeks. Overtime is also distributed in a rotation, by seniority, so that no one officer has significantly more overtime opportunities than any other. In conclusion, the data is so compelling that whenever possible, shortages should be covered with overtime rather than hiring. Works Cited Earley, S. (2001). An Analysis of the Utilization of Overtime Versus Hiring Additional Personnel. Riverside, CA. Thomas, B. (2006). Corrections Overtime Planning Study. Olympia, WA.