The Chocolate Market Industry Economics Essay

The Chocolate Market Industry Economics Essay The chocolate market industry has been around in the UK since the 19th century. Since then, many different firms have developed and established themselves in the market, resulting in a competitive market. Therefore, this project will focus on how the UK chocolate market structure has changed and evolved over the years and the causes of this. Our project will be mainly based on analysing the chocolate company Cadbury and their trend in sales, along with other factors which has caused the takeover of Cadbury by Kraft Foods. From this, we will be able to determine the factors which caused the change of market shares original Cadbury has. Outline the trend in sales by the major chocolate manufacturers in the UK over the last 10 years, and analyse the structure of the UK chocolate industry. Western Europe is the largest chocolate market in the world (Haymarket Network Ltd. June 2012) and Britain has the biggest confectionary market among the European Union(Barnett 2006). Moreover the UK has the seventh highest consumption of chocolate in the world. The average Brit consumes 17.49lbs of chocolate per year (The World Atlas of Chocolate 2000). Since the last ten years the chocolate confectionary sells has grown significantly. During the period of 2000-2005 the compound annual growth rate for chocolate sales in percent was approximately 2.5% Euro. The estimated value of the sales for 2005 was à ¢Ã¢â‚¬Å¡Ã‚ ¬6,214m (Euromonitor International 2005). Additionally, according to Mintel UK market research firm, the chocolate market in the country reached  £3,976 billion in 2011, a 21% increase over a five-year period and 7.5% growth since 2010. As the people seem to continue purchasing chocolate, even more than before, this is certain premise for involving huge chocolate players in strive for bigger market share in the country. In the last ten years the chocolate market in United Kingdom was dominated by several companies. Since 2010, when Kraft took over Cadbury, three companies dominated the market with control over 83 percent in 2011 Nestlà ©, Mars and Cadbury/Kraft. Figure 1. Percentage of market share in the UK chocolate industry (Trading Visions 2011) Other big companies involved in the UK market are Hershey, Thorntons, Ferrero, Lindt, Divine chocolate and others. The Mintel released table in 2012th explains more detail the changes in the market chocolate share during the last couple of years. 2009 2010 2011 (est) % change  £m %  £m %  £m % 2009-11 Kraft Foods (Cadbury) 1,187 33 1,252 33 1,297 33 9.3 Mars 953 27 1,005 27 1,073 27 12.6 Nestlà © 585 16 606 16 646 16 10.4 Ferrero 130 4 126 3 129 3 -0.8 Thorntons 68 2 75 2 74 2 8.8 LindtSprà ¼ngli 49 1 60 2 63 2 28.6 Total of the above 2,972 83 3,124 83 3,282 83 10.4 Others 375 10 404 11 423 10 12.8 Own-label 228 6 244 6 271 7 18.9 Total 3,575 100 3,772 100 3,976 100 11.2 Figure 2. Percentage change in market shares in the UK chocolate market, by value, 2009-11 (Mintel 2012) The fragmentation between few large companies in the chocolate confectionary industry is a sign for oligopolistic structure of the market. During last 10 years, the situation changed several times. Brand owned by Cadbury, Daily Milk, grew 11,7% from  £374m to  £418m in 2010 while Kraft brandsMilkà Ã‚ ° sales increased from  £8,7m to  £21,3m according to Miggiano (category vice-president for chocolate in the UK). Normally an oligopoly exists when the top five or less firms in the market account for more than 60% of total market demand/sales (Econ 100 n.d.). Therefore it can be concluded that the situation of the market structure is certainly an oligopoly. A typical characteristic for oligopolistic competition is the big amounts spent for advertising. The leading company Cadbury spends millions for advertising every year, for example for their new chocolate bar Crispello they have prepared 7 million £ from their budget (Mail online 2012). In the UK chocolate industry there are known to be several barriers to entry, contributing to the structure of the market. The huge capital needed for starting business in the market is the main obstacle for new firms. Advertising and marketing could also be classed as a major barrier to entry, where concerning the oligopolistic confectionary firms. This is because some companies may have the financial power to win over consumer loyalty with their expensive branding. Therefore, the contestability of the market can be questioned as market firms with well- established, branded products make it rather difficult and more expensive for new firms to enter into the market successfully. However there are a lot of chocolate firms in the industry, with small profits and share. An example is the Divine Chocolate company, which is well known for its fair trade policy. Explain why Kraft Foods wanted to take over Cadbury. To what extent do you think the arguments against this takeover were valid? Cadbury is known to be one of the largest confectionary companies in the world. The British owned company was founded in 1824 and has been in existence since. However, in February 2010, Kraft Foods Group a reputable company within their own rights took over the multi-billion pound business, which caused significant outrage. The unprecedented event meant that Cadbury did not expect other firms to bid for the company, especially when it was not for sale. However, Kraft Foods had other intentions stating that The British confectioner offers Kraft greater access to sharp growth in emerging markets as well as some of the worlds leading chocolate (Ruddick 2010). It is therefore, evident that Kraft wanted to takeover Cadbury purely for economic gain, and to raise the companys profile and reputation amongst other respectable markets. Kraft Foods felt this was the perfect opportunity to do so and as a result, forcefully imposed a deal on Cadbury which they felt was sufficient enough for Cadbu ry to transfer/ give up their assets (company). This is also evident in this statement which mentions that Not only was Cadbury not for sale, but it actively resisted the Kraft takeover (Moeller 2012). Additionally, recent information suggests it is also debatable whether arguments in opposition of the takeover were valid, particularly due to Cadburys profits increasing in recent years. Telegraph staff and agencies (The Telegraph 2012)indicates that the purchase of Cadbury by Kraft allowed for Cadbury to be reinstated into the global market where consumerism remains at large. Kraft has reported strong sales and profit increases in the first full quarter since it took over Cadbury. Sales rose 25% to $12.3bn ( £7.75bn) in the three months to 30 June, and Cadbury accounted for 90% of the gains. Net profits were up 13.3% to $937m ( £590.1m), compared with $827m ( £521m) in 2009 (Barker 2010). Thus, allowing for Cadbury to expand and increase its profitability. It can therefore be said, that although some felt apprehensive towards the move of Cadburys ownership, it seems to have been for the better. With MP Steve McCabe even stating I think the investment is whats crucial to the l ong term future, and pointed out that Kraft had also expanded the research and development section. On the other hand, Now, nearly two years on since the hostile takeover in February 2010, the firm has announced a further 200 job cuts, the company has given no specific assurances over the future of 4,500 UK jobs (BBC 2011). Therefore, suggesting that those against the transfer of the company did undoubtedly have reasons to be concerned. An additional article even goes further to suggest Kraft already has a track record of cutting production and moving production abroad. Theres no guarantee that theyll keep production in the UK in the long run (BBC 2010). This indicates that there were implications of giving permission to Kraft to handle the company. Yet, this risk was still taken instilling fear in workers who were already apprehensive of this transition. This suggests arguments against the takeover were indeed valid. Overall, it can be argued in this section that although Kraft, being a well-established company with a strong portfolio to build upon, it caused much controversy in its takeover of Cadbury. The addition of Cadbury to the firm means that Kraft is able to emerge in markets successfully that they were restricted from before. Many argued that the takeover allowed for Cadbury to develop further into global markets rather than remaining in the UK. The company became increasingly profitable and as a result, a popular one in which many are interested in investing. However, with the good comes the bad and in a situation as such, it meant that the UK staff of Cadbury were at risk of losing their jobs. This would occur if Kraft moved the Cadbury business abroad, which has partially occurred since. Kraft has produced good results for Cadbury but not without causing implications in the UK (where Cadbury originates from). It can be stated from the research evidence that the intentions behind Kraft s takeover of Cadbury are quite clear and the opposition arguments of the UK Cadbury staff and the UK government are most certainly valid as displayed throughout this section. On a chart show what has happened to the UK pound (sterling) against the dollar between December 2007 and September 2012 Source: Bank of England Using a supply and demand diagram, explain this change in the sterling exchange rate against the US dollar. The exchange rate is the rate at which one currency trades for another on the foreign exchange market. On the open market prices of goods, commodities and value of nations currency (under a floating exchange rate) are subordinated to the control of two forces- supply and demand (Sloman:360). Generally, the exchange rate is determined by the fundamental law of the market forming an equilibrium rate (price) by equating demand and supply of the currency. One of the primary laws of supply and demand indicates that high supply causes low prices and high demand results in high prices. This fact implies that when there is a rich supply of a particular good then the price should fall and vice versa. The price increases when there is a scarcity of the product. Consequently, an increase in the demand of a commodity would cause it to appreciate in value, whereas an increase in supply would cause it to depreciate (Capital Market Services 2012). The change in the exchange rate of UK pound sterlin g to US dollar can be explained using a basic supply and demand diagram.1.jpg Figure 1 Figure 1 shows a normal downward slopping demand curve. A decrease in the price of the pound in relation to dollars from $2 to $1 will cause British exports in the USA to become much cheaper than the domestic product. The demand for British export will rise in the USA, and in a result, the demand for British currency to buy these goods will increase, as the Americans will have to exchange their money for British pounds. Thus, at lower prices (lower exchange rate) more pounds will be demanded, and vice versa. Movements up the vertical axis represent an increase in price of the pound, which is equivalent to a fall in the price of the dollar. Similarly, movements down the vertical axis represent a decrease in the price of the pound (Capital Market Services 2012). 2.jpg Figure 2 Figure 2 describes the supply side of the determination of the exchange rate. When UK importers wish to buy goods from USA, they will supply pounds on the foreign exchange market in order to obtain dollars. The higher the exchange rate, the more dollars they will get for their pounds (Sloman 2009:360). If the price of pound in relation to dollar rises from $1.50 to $2, price of imports from the USA will fall. Assuming the price elasticity of demand for the American imports is greater than one, the amount of pounds that UK consumers will need to supply in order to obtain the dollars to buy the goods- will rise. The supply curve slopes up because British firms and consumers are willing to buy a greater quantity of American goods as the dollar becomes cheaper (i.e. they receive more dollars per pound). Thus, the higher the exchange rate, the more pounds will be supplied (Sloman 2009:360). 3.jpg Figure 3 Based on Sloman 2008:162 Suppliers and consumers meet at a particular quantity and price at which they are both satisfied, known as the equilibrium price pictured by Figure 3. At any higher price there would be an excess supply of British pounds that would drive price down. A lower price would cause a shortage of pounds driving the price up. In practice, the process of reaching equilibrium is instantaneous. The foreign exchange dealers working for the banks are incessantly adjusting the rate as new customers make new demands for currencies (Sloman 2009:361). 4.jpg Figure 4 Based on Sloman 2008: 161 A change in the exchange rate is caused by any shift in the supply and demand curves. When the demand and supply curves shift from D1 and S1to D2 and S2 respectively the exchange rate will fall from $1.60 to $1.40. A decrease in the free-market exchange rate is called depreciation, an increase is an appreciation. Explain the impact of this change in the value of sterling against the US dollar on a UK chocolate manufacturer who buys cocoa beans which are priced in dollars Appreciation of pound against dollar is most beneficial for importers, like given UK chocolate manufacturer who buys cocoa beans priced in dollars. They are advantages as they need to find fewer pounds to buy their imported goods. Depreciation of home currency makes foreign buyers disadvantages as they need to find more money to pay for their imports (tutor2u). Therefore, in this example the best time for foreign investments was between December 2007 and June 2008 when the pound exchange rate was the highest. Outline the causes of the current recession in the UK. Using relevant economic theory show how recession affected the UK economy. Economist and experts still disagree on the definition of recession. However, technically speaking, the economy of a country would slide into recession when it experiences two continual quarters of negative economic growth. This happens when the GDP would have to contract on a quarter by quarter basis for a total period of six months. GDP (gross domestic product) is the total amount of goods and services produced by a country in a given period of time. The credit crunch that began in August 2007 brought recession in Britain and other countries across the world. Soon everything worsened dramatically and turned into global financial crisis in the autumn of 2008. The recession started in America where mortgage companies got into massive debt by giving out many subprime mortgages. They then bundled this debt on to other countries such as the UK by borrowing from abroad to finance this risky lending.The central problem of UK was Britains banks, which had invested their reserves in those bundles or effects that turned out to be unsafe, illiquid or even worthless. As UK banks began to struggle, the government allowed them to lend to each other to promote liquidity. They did not know that this would result in even more debt and tension between the banks. Consumer confidence dropped dramatically down. Along with the overvalued housing market finally failing, consumption began to fall.The British economy was officially declared to be in a re cession in January 2009, when the Office for National Statistics (ONS) announced that the estimate of gross domestic product (GDP) showed a fall of 1.5 per cent in the last three months of 2008 after a 0.6 per cent drop in the previous quarter. This was the biggest quarter-on-quarter decline since 1980 and the first time the economy had been in recession since 1991. ONS figures show that GDP fell by 2.4 per cent in the first quarter of 2009 compared with the last quarter of 2008. GDP fell by a further 0.7 per cent in the second quarter of 2009, leaving the level of GDP 5.5 per cent lower than in the second quarter of 2008, the largest annual fall on record (ONS 2009). It was the deepest recession since the war. The Manufacturing output was down 7% by end 2008. It has affected many sectors including banks and investment firms. Many well-known and established businesses went bankrupt. Britain has struggled to come out of the latest recession, with much speculation of a double dip recession during the 2010s. Output fell by 0.5% in the 4th quarter of 2010. The unemployment rate rose to 8.1% (2.57m people) in August 2011, the highest level since 1994. As of January 2012[update], after 15 quarters, GDP is still 4% down from peak at start of recession. And now end of 2012 there are also speculation of a triple dip recession. Explain the statement about cocoa, referring to the relevant types of elasticity. Supply conditions play a big role in terming the price of chocolates. Since Cocoa is a farm product it is subject to fast-developing changes in growing conditions. Ivory Coast is the biggest and Ghana the second biggest producer of cacao therefore if any viruses, like the stunted shoot disease, or any bad weather conditions affect their harvest will have consequences on the chocolate prices. On the other side good weather conditions will boost supply and drop the prices. Unpredictability of prices is increase by the fact that chocolate demand is very inelastic. In the US, short-term elasticity of demand has been estimated at about -0.2, and is even lower in some big European consumer countries (Henri Jason 1994). When demand is inelastic, even a small shift in the supply curve can produce a big change in the market price. IEoD = (% Change in Quantity Demanded)/(% Change in Income) Another factor that determines the prices of chocolate is the strong income elasticity of demand. For example in the United States, a 10% increase in income has been estimated to increase per capita chocolate consumption by 9.2% (Henri Jason 1994). Income elasticity is not lot different in other countries. The recession makes people believe they should spend less and most of the cases people do earn less money or they have recently lost their job because of the financial crisis. Therefore they have less to spend. This will affect their choice between normal goods and luxury goods. If chocolate becomes too expensive they might become luxury good for some people, at the moment it is a normal good for most people. undefined Source: tutor2u As a part of your conclusion, assess the future of the major chocolate companies inthe UK. Do you foresee future growth, stagnation or decline? Overall, it is evident that many factors influence the chocolate market in todays world. In recent years the best market decision by various chocolate companies was offering a variety of products to the consumer market. This strategy led to big profits for the biggest players in the industry, as they could afford the expensive advertising for their products. However, the trend for chocolate purchases has not slowed down regardless of the economic situation. In fact opposite to logic, people seem to have taken advantage from chocolate products in the recession, as they have spent more time staying home during the hard times of the British economic stagnation. On holidays such as Easter and Christmas, purchases for some specific products has doubled, tripled or even more compared to the rest of the year. According to professional investigators of the chocolate trends, like Mintel, the future of the chocolate market in UK will face a growth in the next several years. However, as a group we believe based on the evidence from this project, that the UK chocolate industry could potentially be dominated by foreign companies, resulting in stagnation for British chocolate companies.

Set Design for Antigone Essay example -- Drama

Outline your set design for Antigone and explain how it would help a present day audience to understand the plays themes and atmosphere's. The play Antigone can be greatly enhanced by the correct use of set, in the same way though the set can be used and interpreted in many different ways. To start with I am going to draw a picture of my set design so i can then refer to it as i talk about the different aspects of it and how each of those aspects would help a present day audience understand the plays themes and atmospheres. I would begin with projecting 3 images onto a white sheet that is draped over the back wall of my set. The first of these images is going to be a gravestone. This will be projected onto the left hand third of the screen and for the reason that even though in ancient Greece they did not use gravestones it will help the audience understand how Eteocles has been buried in the proper manner as a good son. In the centre third of the screen I would have projected an image of a pair of eyes, these eyes would be glowing red to begin with but they would gradually get a more watery red until they become glowing yellow. The eyes are there to symbolise to the audience how the characters are constantly in the presence of God, which is quite clearly one of the plays major themes. The eyes show how Creon is always under scrutiny and anything any of the characters does is being seen, in a way that he/she see's everything and knows everythi...

Arvind Pandey Caught in Business Web Essay

Arvind Pandey is a project manager at Al Saba Construction Company in Muscat. It s a flourishing company with several construction projects in Muscat and abroad. It is known for completing projects on time and with high quantity construction. The company’s Chairman is a rich and a highly educated Omani. A German engineer is Arvind’s Vice – President for urban and foreign construction projects. Three months ago, Al Saba had submitted a tender for a major construction project in Kuwait. Its quotation was for $ 25 million. In Kuwait the project was sponsored and announced by a US – based construction company called Fuma. According to Al Saba, their bid of $ 25 million was modest but had included a high margin of profit. On 25 April, Arvind was asked to go to Kuwait to find out from the Fuma project manager the status of their construction proposal. Arvind was delighted to know that Fuma had decided to give his company, (Al Saba) the construction project work. The project meant a lot of effort and money in planning the proposed construction in Kuwait. But before Arvind could tank the Fuma project manager, he was told that their bird should be raised to $ 28 million. Arvind was surprised. He tried to convince the Fuma project manager that his (Arvind company had the bast reputation for doing construction work in a cost effective way. However, he could always raise the bid by $ 3 million. But he wanted to know why he was required to do so. The Fuma manager’s reply was, â€Å"That’s the way we do our business in this part of the world, $ 1 million will go to our Managing Director in the US, I shall get $ 1 million, you, Mr. Pandey, will get $ 1 million in a specified account in Swiss Bank. Arvind asked, â€Å"But why me?† â€Å"So that you never talk about it to any one.† The Fuma Project Manager said. Arvind promised never to leak it out to any one else. And he tried to bargain to raise the bid by $ 2 million. For Arvind was familiar with the practice of â€Å"pay – offs† involved in any such thing. He thought it was against his loyalty to his company and his personal ethics. Arvind promised the Fuma project manager that the bid would be raised to $ 28 million and fresh papers would be put in. He did not want to lose the job. He came back to Muscat and kept trying to figure out how he should place the whole thing before his German Vice President. He obviously was at a loss. Questions: 1.Analyse the reasons for Arvind Pandey’s dilemma. 2.Does Arvind Pandey really face a dilemma? 3.In your view what should Arvind Pandey do? Should he disclose it to his German Vice President? CASE IV Company Accepting a Contract A computer company was negotiating a very large order with a large size corporation. They had a very good track record with this client. In this corporation, five different departments had pooled their requirements and budgets. A committee was formed which had representation from all the departments. The corporation wanted the equipment on a long lease and not outright purchase. Further, they wanted the entire hardware and software form one supplier. This meant that there should be bought – out items from many suppliers since no one supplier could meet all the requirements of supply from its range of products. The corporation provided an exhaustive list of very difficult terms and conditions and pressurized the vendors to accept.The computer company who was finally awarded the contract had agreed to overall terms that were fine as far as their own products were concerned but had also accepted the same terms for the brought – out items. In this case, the bought – out items were to be imported through a letter of credit. The percentage of the bought – out items versus their own manufacture was also very high. One of the terms accepted was that the â€Å"system† would be accepted over a period of 10 days after all the hardware had been linked up and software loaded. The computer company started facing trouble immediately on supply. There were over 100 computers over a distance connected with one another with software on it. For the acceptance tests, it had been agreed that the computer company would demonstrate as a pre-requisite the features they had claimed during technical discussions. Now, as you are aware, if a Hero Honda motorcycle claims 80 km to a litre of petrol, it is under ideal test conditions and if a motorcycle from the showroom were to be tried for this test before being accepted, it would never pass the test. In corporation’s case, due to internal politics, the  corporation persons from one department – who insisted on going exactly by the contract – did not sign acceptance since the â€Å"system† could not meet the ideal test conditions. Further, in a classic case of, â€Å"for want of a horse – shoe, payment for the horse was held up†, the computer company tried to get the system accepted and payment released. The system was so large that at any point of time over a period of 10 days something small or the other always gave problems. But the corporation took the stand that as far as they were concerned the contracts clearly were concerned the contract clearly mentioned that the â€Å"system† had to be tested as a whole and not module by module. Questions: 1.Comment on the terms and conditions placed by the corporation. 2.What factors influenced the computer company’s decision to accept the contract? 3.Was it a win – win agreement? Discuss?

Harley Davidson Financial and Strategic Analysis Review

Harley-Davidson, Inc. (Harley-Davidson) is one of the leading manufacturers of heavyweight motorcycles in the world. Harley-Davidson is the parent company of the group of companies including Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The company offers more than 30 models of touring and custom Harleys through a worldwide network of more than 1,600dealers,spreadacrosssixcontinents. Harley-Davidson provides wholesale and retail financing and insurance programs principally to its dealers and customers.SWOT AnalysisShare DataHarley-Davidson, Inc., Share Data Price (USD) as on 01-Aug-201241.67 EPS (USD)2.33 Book value per share (USD)10.50 Shares Outstanding (in million)234.92 Source : GlobalDataPerformance Chart Harley-Davidson, Inc., Performance Chart (2007 – 2011) Financial Performance The company reported revenues of (U.S. Dollars) USD 5,311.71 million during the fiscal year ended December 2011, an increase of 9.31% over 2010. The operati ng profit of the company was USD 829.97 million during the fiscal year 2011, an increase of 74.59% over 2010. The net profit of the company was USD 599.11 million during the fiscal year 2011, an increase of 308.83% over 2010.Source : GlobalDataHarley-Davidson, Inc. – SWOT AnalysisSWOT Analysis – Overview Harley-Davidson, Inc. (Harley-Davidson) designs, manufactures, and sells heavyweight motorcycles. The company markets its products in North America, Europe, Asia/Pacific and Latin America. The company’s strong brand image, coupled with its wide range of products, helps it to be a front-runner in the industry. However, dependence on the domestic market and product issues are a few areas of concern to the company. Nonetheless, expansion in global markets, especially Asian markets, and launch of new models could ensure a strong future for the company. New emission standards for two wheelers and  the prevailing competition could negatively impact the companyâ€⠄¢s growth.Harley-Davidson, Inc. – Strengths Strength – Strong Brand Image Harley-Davidson owns one of the strongest brands in the world, which helps it attract and retain a loyal customer base. The company established a strong brand image with its motorcycles achieving iconic status and being ranked among the world’s most valuable brands. Harley-Davidson has been continuously ranked among the top 100 global brands in the world. The company holds 55.7% share in the US heavyweight market; and is ranked #1 or #2 in the heavyweight motorcycle market share in nine countries across Europe.Harley-Davidson’s motorcycles are known for their traditional styling, design simplicity, durability and quality. The company achieved industry recognition for its high quality, best design, robust performance and unflinching customer confidence, loyalty and trust of its products and services. The Harley-Davidson brand has significantly contributed to the success of the compa ny by building strong market recognition and a loyal customer base.Strength – Broad Product and Service Portfolio Harley-Davidson offers a broad array of products and services through its two business segments, namely, the Motorcycles & Related Products segment and the Financial Services segment. The company offers a variety of products in the motorcycle segment to cater to the various needs of its customer base. Harley-Davidson designs, manufactures and sells heavyweight touring, custom and performance motorcycles, besides a line of motorcycle parts, accessories, general merchandise and related services.Harley-Davidson is well known for its unique motorcycles. Its subsidiary, Harley-Davidson Motor Company (HDMC), manufactures five families of motorcycles, namely, Touring, Dyna, Softail, Sportster and V-Rod. These models are distinguished by their frame, engine, suspension, and other characteristics. The company shipped 233,117 motorcycles in the fiscal year ended December 20 11, comprising 39.5% Touring motorcycle units, 39.2% Custom motorcycle units, and 21.3% Sportster motorcycle units.Through Harley-Davidson Financial Services (HDFS), the company offers a package of wholesale and retail financial services for its products, providing it a competitive edge in the motorcycles business in the US and Canada regions. HDFS financed 51% and 30.4% of the new Harley-Davidson motorcycles retailed by independent dealers in the US and Canada respectively in 2011. HDFS provides wholesale financial services to Harley-Davidson motorcycle dealers, including floor plan and open account financing of motorcycles and motorcycle parts and accessories. These specific services provide a competitive edge to the company in capturing a higher market share and enhancing its bottom line.Strength – Focused Research and Development Activities Harley-Davidson has a strong research and development unit that facilitates innovation and attracts industry attention. Its Product D evelopment Center (PDC) undertakes the development of new and better quality products. The company spent $145.4m, $136.2m, $143.1m and $163.5m in the fiscal years ended December 2011, 2010, 2009 and 2008 respectively on research and development activities.Harley-Davidson’s continuous focus on R&D helped the company in launching innovative products such as Softail motorcycles with 1584 cc engine with new features such as new hand controls, a larger odometer, and an anti-lock braking system option. Continuous research and development activity enables the company to maintain a leading position in custom and touring motorcycle market and develop products for the performance segment. Focused R&D activities enable the company to offer innovative products and improve its operational performance.Harley-Davidson, Inc. – Weaknesses Weakness – Product Recalls/Issues Product recalls/issues not only affects the company’s current revenue, but could also affect its long -term performance by reducing customer confidence. In February 2012, Harley-Davidson launched a repair service campaign to fix faulty brakes in about 1,228 units of 12 models, including the Road King and the Electra Glide Ultra Classic.In October 2011, the company initiated a world-wide recall affecting over 308,000 units of its Touring, CVO Touring and Trike motorbikes. The company made this recall owing to a potentially  dangerous glitch with their braking systems, where in the problem with a switch on the bikes could cause the brake lights to stop working, or may even cause the rear brakes to fail. Such recalls would hamper Harley-Davidson’s brand image and have a significant impact on its product sales.

Canadian senate reform essays

Canadian senate reform essays The Canadian Senate is supposed to be a sober second thought on government legislation. But, in many cases, as far as I know, senators are not meeting the expectations of the Canadian people, or fulfilling the requirements of the job. The question is, should the senate be reformed? In my opinion, the Canadian Senate should be reformed because it is not elected, provinces are not equally represented, nor is it effective. Historically, the Governor-General was supposed to appoint senators but, in actuality, the elected Prime Minister appoints the members of our Canadian Senate. At Confederation, this system seemed like a good idea. It made sense to have the Prime Minister appoint good people that he knew would make responsible senators. People generally understood these appointments to be a great honour and responsibility, and therefore took the position very seriously. In the culture of the time, it was an honour to serve your country this way. Unfortunately, as the years went on, this system has been subjected to abuse. An example of this, is the expulsion of Senator Andrew Thompson in 1998. The 73-year old senator was said to represent almost every negative stereotype that ever existed about the Senate. He was aging and apparently ill. He had shown up for work only 12 times since 1990. He collected an $85 000-a-year compensation package, and spent most of his time at a lavish villa in Mex ico. In my view, this shows a senator who, himself, didnt consider the work he was doing and the interests of the region he was representing, important. This is only one case; there have been about 17 other senators who have been held up for criticism for poor attendance. Each had missed more than half the years sittings. This abuse of the system is one of the reasons why I believe the senate should be elected by the people. Senators dont have to be elected or face periodic elections, s...

Operations & Quality Management (Singapore Airlines) Essay

Operations & Quality Management (Singapore Airlines) - Essay Example Singapore Airlines is quite an absurdity. It is the state-run airline for a country that is basically just a city; a nation that has residents of no more than 3 million; and a country that is just 250 kms across with no domestic routes to take over. Regardless of this it has managed to regularly post profits in one of the globe's mainly returning industries. According to higher executives, SIA evidently understands the high directive placed on it by discriminating and increasingly challenging customers. This causes a severe challenge internally in terms of being the finest in all aspect and places massive stress on the leading edge staff. Such high orders and anticipations result in a need to frequently alter and evaluate everything the airline carries out. Leading management is also faced with a continuous effort to form an unvarying service that is also extremely custom-made. SIA strategies all its procedures and sub-procedures in whole, with each getting unremitting concentration for enhancement and interrupted redesign (Heracleous, Wirtz, Johnston, 2004, pp.33-38). With such an international status for service quality, bringing terrific service is a most important challenge for SIA. The key is the company's entire approach - it knows that customers are buying a total bundle of service and that all its components have to do extremely well in every way. Introduction To persist as a service leader in the airline industry SIA makes it targets to create a "wow outcome" and to often blow customers. It does this by paying attention deeply to its customers and continually making out "wow" opportunities, such as not so heavy and more nutritious and hygienic food and an e-mail service within flight. Such new plans are also designed by feedback from staff, information about several other airlines, study of complaints, claims and compliments, and main traveler surveys. SIA's detailed feedback mechanisms gather information from different sources, all of which is analyzed then. Difficulties and faults are publicized internally to the extent that is possible. Quality Customer Service Singapore Airlines (SAI) is a model of constancy. The airline can possess 3 decades of continuing achievement, even affluent during times when the industry as a totality struggled. Its assets of awards include a confounding 67 international honors in 2002 only. How has this height of success been maintained for such a long period By implanting a customer-oriented culture that permeates all the airline's dissimilar operations. Significantly, though, an understanding of the want for cost usefulness grounds client service quality. All workers share this attentiveness. Holistic teaching techniques compel the message home, as does the reality that extra benefits and other incentives are very much reliant upon earnings produced. Not astonishingly, staff at all levels negate of resources being misused. Evidently you don't remain at the peak for 30 years by standing motionless. Modernization is a must and SIA is a sharp operator where this is noticed. The company considers that all improvements have some degree of shelf life and is not scared to break up with those

Define and give examples of downwards, upwards and horizontal Essay

Define and give examples of downwards, upwards and horizontal organizational communication. Discuss the advantages and disadvantages of the different forms of c - Essay Example Downward communication is the most studied form of communication in the business organization. As Downward communication is the most widespread form in organizations as those at the top have the facilities and status for instigating communication. They also have a greater require doing so and are definitely less inhibited about taking such action. at times written messages are issued by top executives to all levels of the organization. though this presents the kind of deformation that takes place when oral messages are sent down the line, employees are conditioned to believe that communications must come through their immediate supervisors. while they don't, employees quickly instigate to lose respect for the supervisors (Jeanette W. Gilsdorf; 1998). If you choose to communicate directly, there is the problem assuring that you do not alienate the layers between yourself and the person you are communicating with. You must also be careful of what you say so as not to countermand or cause confusion from what more immediate supervisors have said (Ferrell, March 10, 1998). Several writers, like Marshall McLuhan in The Medium Is the Massage, have explained how media influence the receiver's perceptions of the message. Douglas Brush asserts, "A ten-minute videotape of a chief executive officer announcing a new corporate policy imparts hundreds of times more information than an audiotape of that same message, which contains hundreds of times more information than a printed text of the message." (Brush, pp. 10-11). Downward communication moves from superior to subordinate, whether from the chairman to all employees of the company or from one superior to one subordinate. It is the main form of communication in corporations. More media carry more messages down the management chart than take them upward or horizontally combined. That is not to say that formal communications in the business organization are typically downward or even vertical. Most are horizontal. However most formal ones are downward, as one writer notes: "It is obvious that the bulk of communication in most organizations is downward--directing, instructing, explaining, and the like. The passing on of orders, policies, and plans is the backbone of managerial communication." (Jose R. Goris, Bobby C. Vaught, John D. Pettit Jr, 2000) Katz and Kahn list five purposes of downward communication: 1. Specific task directive: job instructions. 2. Information designed to produce understanding of the task and its relations to other organizational tasks: job rationale. 3. Information about organizational procedures and