Marketing Plan for Lords Ice Cream Parlour

TABLE OF CONTENTS *1. 0 EXECUTIVE* SUMMARY ‘Lord’s Ice-cream Parlour’, one of the prime ice cream products situated in St. Johns Wood with a good market share is one of the best in that area providing ice cream with fresh taste and modern packaging. It was established in 1998, ‘Lord’s Ice-cream Parlour’, at present uses straight-line technology for manufacturing more than twenty three types of premium ice cream in its factory in Swiss Cottage, producing nearly 530 liters of ice cream each day . Lord’s Ice-cream Parlour’ has a two year marketing plan for current customers as well as its new consumers to attract and satisfy those target groups of consumer. The company wants to increase its market share by 7% and compete with the current and new entrants. For the next two years the company wants to increase its promotional activity. The management has a plan to utilise its one- fourth of its profit for promotional activity. The manag er is also planning to increase its branches in two to three different locations. *3. *0* COMPANY* PROFILE 4. 1 MISSION Mission is the organisation’s reason for existence. The mission describes the organisation’s shared values, beliefs and reason for being. ‘Lord’s Ice-cream Parlour’ without playing an exception, being committed to achieving the highest quality products and positioning itself as a good brand by gaining the consumer’s trust aligns effectively to its guided mission that echoes-â€Å"The world of great taste†. This includes a dedication to review the existing operations, the evaluations and the creation of the new products by not only manufacturing the highest quality products but also delivering the product by maintaining this high quality. To satisfy the ever-changing needs of the customers, ‘Lord’s Ice-cream Parlour’ is launching regularly new ice creams and introducing new flavours. Thus in a few words it can be said –‘Lords Ice-cream Parlour’ is based the relationship with customer. 4. 2 VISION The message from the managing director of ‘Lords Ice-cream Parlour’ propagates as: â€Å"I dreamt of a business venture that would have distinct appeal to society for its unique qualities and eventually will become a role model for other business enterprises. This simple but extraordinary quality is â€Å"Be True to The Society. ‘Lords Ice-cream Parlour’ as being a very prospective SBU’s which is guided by this similar vision. As a result this key philosophy has earmarked ‘Lords Ice-cream Parlour’ as the most trusted and one of the better companies in the country. † 9. OBJECTIVES Corporate Objectives: To give an insight to the ice cr eam industry, the company and the product line. To make an assessment of the interaction between ‘Lord’s Ice-cream Parlour’ and its immediate environment and analyse the impact of various trends upon its survival and long-term success. To conduct an investigation of the wide range of strategies pursued by ‘Lords Ice-cream Parlour’ with a view to achieving its objectives. Marketing Objectives: To analyse the marketing strategies for ‘Lords Ice-cream Parlour’ and assess its target consumers and competitors. To regain the 15% of the inactive member by December 2010. To provide an introduction of the strategic aspects of marketing with particular reference to the analysis of marketing mix. To increase the revenue by 12% by December 2010. To increase the market share by 7% by December 2010. To analyse the techniques of segmentation, targeting and positioning of products. To analyse the distribution channels and the role of intermediaries in the distribution network. To develop an appreciation of the need to evolve a promotional mix appropriate to the product. To explain and analyse the role of Marketing Research. To have a clear analysis of the various growth strategies for the market opportunity identification. Research was undertaken by gathering descriptive information from the managers, customers and employees in the form of personal interviews. Both quantitative and qualitative analysis has been emphasised. Both primary and secondary data were obtained through informal interviews with the company and questionnaires to customers. Moreover in cases where managers and customers were unwilling or unable to provide information, observational research played a vital role. It must be added that the report though, tried to give an overall view of ‘Lords Ice-cream Parlour’, it focused on London City as their area of study. Primarydata was first collected by taking in depth interviews of the Marketing Executive and Sales person to have a better insight to the marketing aspects of ice cream. Mostly personal interviews were undertaken since flexibility, quality of data that can be collected, speed of data collection and response rate is extremely high and information seems to be more reliable and effective. Only unbiased, relevant and valuable data of related issues were recorded to ensure a critical evaluation of the marketing techniques and strategies used by ‘Lords Ice-cream Parlour’. Problems were faced during the interview, as the managers were reluctant to disclose some of the confidential aspects of the organisation. All the data obtained were not always reliable and hence subject to error. Due to the time constraints I could not complete a comprehensive investigation and there were some areas that were left unexplored. In many occasions managers were hesitant to cooperate in providing honest answers. 8. 1 The Marketing Environment No business is large or powerful enough to create major change in the external environment. These factors are generally uncontrollable, thus market managers are basically adapters rather than agents of change. So it is vital for ‘Lords Ice-cream Parlour’ to take these factors into consideration in every step of their decision -making process and day-to-day activities. THE MARKETING ENVIRONMENt {draw:frame} {draw:frame} {draw:frame} The Task Environment ‘Lords Ice-cream Parlour’s task environment consists of those micro groups in the environment such as suppliers, distributors, customers and competitors. These are interrelated groups that influence managers on a daily basis. SUPPLIERS: From 2010 January the management decided to open two new branches. And two other retail stores are interested to take the product from ‘Lords Ice-cream Parlour’. The main function of the distribution unit of ‘Lords Ice-cream Parlour’ is to create a sequence of effective network so that an important strategic edge over competing channels are created and ensure a continuous flow of its products to the ultimate consumers – target market. The activation of the distribution channels proceeds from their factory and ends at the retail outlets of refrigerated vans. CUSTOMERS: Being the major source of survival and profit, customers form the most important component for an organisation like ‘Lords Ice-cream Parlour’. ‘Lords Ice-cream Parlour’ considers customers as being their life-blood of survival and is taking the maximum innovative efforts that can be utilized for utmost customers’ satisfaction. Customers here can be segmented to family, kids, teenagers of high end, mid end and low end of the market. ‘Lords Ice-cream Parlour’ operating in such ever-changing world of tastes and preference pays heed to customers’ choices and their attitudes. They, very keenly take on customers’ advice, try and amend as well as add new dimension to their business in order to ensure survival in this highly competitive industry. COMPETITORS: One of the most important forces that always keep an organisation on guard is its competitors. Competitors are organisations that produce similar goods. In the context of ‘Lords Ice-cream Parlour’, Movenpick, Baskin Robbins, Thorntons and Marine Ices are their competitors. But surprisingly, the marketing management of ‘Lords Ice-cream Parlour’ views these local brands as mere participants in the same industry rather than as competitors. The General Environment Economic, technological, socio-cultural, demographic, political and legal, and global forces form the macroeconomic environment that ‘Lords Ice-cream Parlour’ operates in are as follows: ECONOMIC: Economic forces are of concern to businesses involves producing goods and services that people want and pay for, as because the economy is an indicator of the general health and well being of a nation. ‘Lords Ice-cream Parlour’ takes into account various economic factors, preferably the rates of inflation, the exchange rate and level of income. The prime reason for such is to have a control over its allocated budget for domestic and imported raw materials. But most importantly alertness of economic variables is necessary to determine ‘Lords Ice-cream Parlour’s pricing strategy so that all segments of the population can afford to buy their products. One of the most pervasive factors in the environment, the impact of technology is seen as the combination of skills and equipment’s that marketers use in their day-to-day operations. In ‘Lords Ice-cream Parlour’, use of technology can be seen in terms of the automated cone baking machines, chocolate making machines, injected deep freezers, milk processing machines and others. These innovate machines are able to produce ice creams at a faster rate while not undergoing any sacrifice in the level of quality, and thus their warehouse has capacities in five hundred liters. The socio-cultural environment is made of institutions and other forces that affect social values, perceptions, preferences and behaviour. In the context of a diverse people, ‘Lords Ice-cream Parlour’ has customized its services according to the country's culture. While the producing ice cream, ‘Lords Ice-cream Parlour’ puts strong emphasis in it. DEMOGRAPHIC: The demographic forces are of interest to marketing managers because it involves people and people make up the markets. Demography shows the populations inclinations towards certain social structure and the increase or decrease in certain age groups . For ‘Lords Ice-cream Parlour’ demographic factors are of advantage if it shows an increase in the number children and teenage population (the most lucrative segment for the ice cream industry). POLITICAL AND LEGAL: The formation, maintenance and survival of any organization are dependent on the stability of a country’s political and legal system. A comprehensive analysis of the political and legal factors by ‘Lords Ice-cream Parlour’ helps in ensuring stability in terms of its operations. The legal consideration lies in the awareness of various laws regarding import of raw materials and the like. 8. 2. * Current* Situation Analysis Core Competencies: Among its normal premium and novelty cup, stick and family pack items, chocobar is the most popular among consumers contributing 29% to the total sales, while vanilla, mega, cornelli and macho, each with sales of about 5%, and have also made their distinct places in the minds of the consumers. The company is giving its effort and concentration for some new and modified flavour of ice-cream. The company wants to increase its market share by 7% for which it is introducing some new marketing strategy and it will be implemented from the next year. Market information: ‘Lords Ice-cream Parlour’ is in their 10th year of business. Being an ice-cream parlour in the St. Johns Wood High Street area, its main activity is to attract customer by its variety of ice-cream flavour. ‘Lords Ice-cream Parlour’ possesses good information about the market and having a good idea about the consumer trends and the likeability of the consumers. And this information helps them to understand how well they can communicate with their consumers and how better they can be served. Geographic The geographic target for the ice-cream parlour is St. Johns Wood area. Five square kilometre people are targeted. Total targeted population is approximately 13,500 64. 9% are economically active and 35. 1% are economically inactive. A fulltime employee’s individual average income is ? 29,305. 48. 8% are educated and 52. 2% has got no qualification. Behaviour factors Recognize the need to have a good dessert like ice-cream. People likes ice-cream more than any other dessert. Ice cream is the symbol of lifestyle. Market needs: ‘Lords Ice-cream Parlour’ is providing their customers delicious ice-cream and a place for enjoyment. It seeks to offer the following benefits that are important for their customers: Customer’s preference is to get healthy ingredients in their specific flavour. Customers also prefer a better service and attention from the staff. Market Trends: ?Last two years’ consumers has less money in their pocket, so that they are spending less money on dessert and ice-cream. Fitness is very important for the people, that is why people are avoiding ice-cream A big percentage of people are going to pubs and bars rather than coming to the ice-cream parlour. *09. * BCG MATRIX Boston Consulting Group (BCG) matrix is a framework for highlighting and analyzing product development policy and associated cash flows implications in a firm. The BCG approach is based on the philosophy that a product’s market growth rate and its relative market share are important considerations in determining its marketing strategies. The marketing strategies of ‘Lord’s Ice-cream Parlour’ is based on the BCG matrix which includes an integration of the firms products into a single overall matrix and an evaluation to determine appropriate strategies for all the different strategic business units (SBUs) of the company itself and the overall portfolio strategies. ‘Lord’s Ice-cream Parlour’ identifies the BCG matrix as a powerful tool To analyze the current situation of the company which is based on the present and projected market growth rate and proposed market share growth. To determine and classify each product expected future cash contributions and future cash requirements. To examine the competitive position of a product or a product line and the opportunities for improving products contribution to profitability In figure below, which is based on work by the Boston Consulting Group, consist of four quadrants in the grid, which represents distinct categories of SBUs or major products of ‘Lord’s Ice-cream Parlour’. The categories differ with respect not only to market growth share and industry growth rate but also on cash generation and needs for appropriate strategies. draw:frame} {draw:frame} {draw:frame} {draw:frame} {draw:rect} {draw:rect} {draw:rect} {draw:rect} {draw:rect} {draw:frame} {draw:rect} {draw:rect} {draw:frame} {draw:frame} Cash Cow: Cash cow has high market share but low growth rate. Since its inception as a business in 1998, the Construction Company has had a remarkable track record and has grown to be a better co nstruction houses in the country. Long run survival through effective strategies of defending its market share by reinforcing customer loyalty has insured the generation of more cash than can be reinvested profitably in its own operations. As a result cash from the construction company flows out to support other SBUs that needs more resources. Star: Star has high market growth rate and high market share. The Marketing Manager of ‘Lord’s Ice-cream Parlour’ identified Construction and Ice-cream as their star businesses. A number of prospective factors can be reckoned to as being responsible for both SBUs performance. Both Construction business and Ice-cream occupy a dominant position in the market. Star businesses usually grow very fast and have high prospects for growth. For example, Ice-cream grew by 3. 1% in the last year (2008), compared to their 5%in (2007). Question Mark: Question Mark has high growth rate, low market share. The identification of the marketing division of ‘Lord’s Ice-cream Parlour’ as its problem child, has characterized this business to have high prospects for growth but which has not yet achieved strong foothold in an expanding but highly competitive market. This inability to generate cash has resulted in poor profit margins and hence its need to be augmented by heavy investment from outside sources. Dog: According to ‘Lord’s Ice-cream Parlour’, no SBU (currently operating) falls under the grid of low market share and low growth rate, that is, the dog. On a concluding note, the long run health of any company depends on having some products that generates cash (and provide acceptable reported profits) and others that use cash to support growth, with no exception to ‘Lord’s Ice-cream Parlour’. Among the indicators of the overall health are the size and vulnerability of the cash cows, the prospects for the stars, the number of problem child, and dogs if many. 10. SWOT Analysis SWOT is the planning exercise used by ‘Lords Ice-cream Parlour’, which provides a framework for identifying internal strengths and weakness and the external opportunities and threats it faces. WEAKNESS: The major weaknesses of ‘Lords Ice-cream Parlour’ comprises of: Incurrence of high-level expenses in the Research and Development (R) sector. High operating and maintenance expenses resulting from the large size of the business. Excessive reliance on foreign suppliers. Entering new related businesses – This is also visible through its new items as Ammo milkshake. Widening the product range. Seeking faster market growth. Exploiting new market segments. Changes in demographic factors. Change in consumer taste: This might result if there is an increased awareness among the health conscious people, which may cause a decline in the purchase of ice cream. Increase in foreign competition. Rise in new or substitute products. Changes in Political factors. 10. THE *Target *AUDIENCE (*Marketing*) The kind of market ‘Lords Ice-cream Parlour’ operates in is characterized by the volatility of its general environment, the dynamism of its competitors and most of all the varying and the inconsistency of needs and buying preferences of the consumers market, which are important consideration guiding their day to day operations. Keeping this in mind, ‘Lords Ice-cream Parlour’ has developed sound marketing programs, which starts with identifying the differences that exists within a market, deciding which segments will be selected and developing specific marketing mixes so as to influence intended customers, and overall perception of the brand, ‘Lords Ice-cream Parlour’ . Market Segmentation ‘Lords Ice-cream Parlour’ has designed various marketing mixes according to the different products needs and preferences with regard to the consumer market and has clustered people with similar needs into selected segments. Domestic Market Segmentation For a consumer-oriented company like ‘Lords Ice-cream Parlour’, whose main operations rallies around the domestic market, a lion’s share of its resources is devoted towards serving the domestic consumer segments. After thorough analysis, behaviour and demographic segments have been identified as their prime areas of focus. Demographic Segmentation From the viewpoint of an ice cream manufacturing company, demographic segmentation holds importance in terms of its close relation to customer product needs and purchasing behaviour and the ready measurability of variables such as consumers’ age and life cycle and their income. Age: This is the most important component of demographic segmentation. Over the years, ice creams were considered to as being more of a recreational product, but standing on this new century, the effect of globalization has placed ice cream as more of a regularity in our lives. ‘Lords Ice-cream Parlour’ has divided its markets in segments according to different age groups such as kids, teenagers, and the family range. Different ages of people are influenced by different flavours of ice cream, different presentations of packaging and different product attributes. Kids incline more towards ice creams, which contains animated and colourful packaging, taste of sweet strawberry, fresh mango, pure vanilla, ripples, hazzle nut coating and crispy flakes. Teenagers prefer low calorie ice cream, more daring and wider range of tastes. Families are influenced more by ice creams that fulfil the general appeal and taste of all the members of the family. Income: Income is the key determinant of consumers buying behaviour. It is the most popular demographic variable for market segmentation. For a larger part of the population to buy the product, it is very important to segment the market in different income groups. This is given utmost importance in London where there is wide variation in the average levels of income. ‘Lords Ice-cream Parlour’ has divided the market into three income groups – low-income group, mid-income group and high-income groups. Market Targeting After market segmentation, ‘Lords Ice-cream Parlour’ goes for designing, implementing and maintaining marketing mixes intended to meet the needs of the target groups, resulting in mutually satisfying exchanges. Domestic Market Targeting The two general strategies ‘Lords Ice-cream Parlour’ uses for selecting target markets are differentiated and undifferentiated marketing. DIFFERENTIATED: UNDIFFERENTIATED: Undifferentiated target strategies approach the segment as one big market with no individual segments and thus require a single marketing mix. Chocobar and the newly introduced Kulfi are the prime examples related to successful targeting of the mass market. Chocobar priced at ? 3. 4/-, mini chocobar priced at ? 2. and Kulfi priced at ? 1. 6 with sober colour packages enables ‘Lords Ice-cream Parlour’ to go for mass marketing. Market Positioning Positioning refers to developing a specific marketing mix to influence potential customers overall perception of a brand, product line or organization. The marketing manager of ‘Lords Ice-cream Parlour’ assumes a realistic view of how customers think about their offerings in the market. At the same time, the ma nger also knows how he wants target customers to think about its marketing mix. According to him positioning issues are especially important when a competitor in a market appearsto be very similar, with the ice cream industry being a prime example. ‘Lords Ice-cream Parlour’ follows several positioning strategies. Products Attributes Macho – Exquisite Chocobar – Energetic Shell & Core – Metange Lolly – Eager Clown – Animating Mega – Energetic Coffee – Refreshing Ripple – Praiseworthy Pralin – Puissance Cornelli – Dual Usage Occasion: Usually consumers perceive ice cream as an integral part of summer. Lords Ice-cream Parlour’ aims at positioning ice creams to as being a winter item along with its regular summer item image. ‘Lords Ice-cream Parlour’ is trying to position its ice cream as a item for all seasons in other parts of the country like that is perceived in London, through different promotional activities. *11. THE* Marketing Mix There are many possible wa ys to satisfy the needs of target customers. A product can have many different features and quality levels. Service levels can be adjusted. The package can be of various sizes, colors or materials. The brand name and warranty can be changed. Various advertising media – television, newspapers, magazines, radio, and billboard can be used to attract the potential customers. A company’s own sales force or other sales specialist can be used. Different prices can be charged. Price discounts may be given and so on. With so many possible variables, is there any way to help organize all these decisions and simplify the selection marketing mix? The answer is – The customer is surrounded by the four P’s. There are additional three P’s newly invented by the marketer. An important point to note is the customer should be the target of all marketing efforts but it is not the part of the marketing mix. Hence, ‘Lords ice-cream parlour’ follows this concept and places its customers in the centre. Product: for ‘Lords ice-cream parlour’ the Product decisions revolve around developing the right product for the target market and this includes not only the physical unit but also features, brand name, company image, value and many other factors. Apart from maintaining a superior quality through its imported ingredients and bringing regular production consultants from Belgium, Denmark and Holland, the units’ separate R department regularly can analyzes new products through its market research to answer questions as: At what price consumers would like to buy the product. Flavours and essence to be used. Consumers’ feedback. Analyze other markets. ‘Lords ice-cream parlour’s Product line includes distinctive ingredients, as some are vanilla flavour with chocolate hazelnut or milk coating, some may have crispy flakes, others include cashew nut. On the other hand, to provide a taste of refreshment there are flavours including coffee, strawberry, mango, with almonds and ripples. Each of these delicacies has positioned itself as a unique brand in consumer’s mind. These eclectic tastes have been able to exceed consumer’s expectations resulting to delightful consumers and thus to the creation of a powerful company image. Apart from that ‘Lords ice-cream parlour’ also can operates through some trolleys for extending its reach to various consumers at different locations as schools, alleys, streets, parks e. . c. Consumers – Availability of scratch cards through purchase of certain flavoured ice creams enables consumers to obtain different types of gifts such as iPod, mp3 player can be achieved by them. Also last year (2008) every purchase of Macho had a Kit Kat free. *PEOPLE*: The management of the ice-cream parlour is very particular about the selection of the people. They are hiring only the mot ivated, energetic and passionate people. The parlour has on job training and skill development continuous activity by which employee can be skilled. But from next year every after three months they are going to arrange a training and motivation program for the improvement of their business. *12. MARKETING* Growth Strategies ‘Lords ice-cream parlour’, like any other company, in order to maintain a stable growth rate, focuses on reviewing the existing operations, the evaluations and the creation of the new products by not only manufacturing the highest quality products but also delivering the product by maintaining this high quality. In seeking growth, ‘Lords ice-cream parlour’ considers both its market and its products. It then decides whether to continue what it is doing – only do it better – or establish new venture. The product/market growth matrix depicts this option for ‘Lords ice-cream parlour’. The matrix is divided into four possible combinations of old and new products with old and new markets. {draw:line} {draw:line} {draw:line} {draw:line} {draw:line} {draw:line} {draw:line} {draw:line} {draw:frame} MARKET PENENTRATION: Here, ‘Lords ice-cream parlour’ tries to sell more of its present products to its present markets by the help of supporting tactics, which might include spending on price, promotion and packaging. For example, ‘Lords ice-cream parlour’ regularly alters its ice cream packaging, and provides occasion oriented price cut. MARKET DEVELOPMENT: ‘Lords ice-cream parlour’s market development strategy is evident by its entry to an entirely new area – Marble Arch. In future, ‘Lords ice-cream parlour’ plans to expand in other parts of London and are undergoing business consultancy of possible expansions in Netherlands. PRODUCT DEVELOPMENT: Nothing is more important to a company’s long-term survival and growth then the successful introduction of new products. By flipping through ‘Lords ice-cream parlour’sbook of achievements, it is evident that one of prime reasons for success has been due to constant introduction of new products. The exquisite Macho, energetic Mega, which hit the markets around two years back, were and are a real feast for ice cream lovers. The very recently introduced Kulfi has once again placed ‘Lords ice-cream parlour’ to as being a people’s brand providing a world of great taste, and which deciphers ‘Lords ice-cream parlour’s drive to maintain satisfaction of all segments of the market. Lords ice-cream parlour’ has, for the time being confined itself only to the ice cream business. Any diversification related businesses would be future-wise. The Marketing Budget {draw:frame} Recommendations In spite of ‘Lords ice-cream parlour’s remarkable success certain loopholes in the marketing aspects has been detected. After my research I came up with some possib le steps and solutions that we would like to state below. Competitors are an important component of the task environment. ‘Lords ice-cream parlour’ should pay heed to its potential competitors rather than treating them as mere counterparts. Lords ice-cream parlour’ should involve in backward vertical integration to lower the costs of value creation and lessen its reliance on foreign suppliers. For instance, incidence such as credit crunch may hinder the flow of supplies in the production process when there is excessive dependence on foreign inputs. To enhance the maturity level, ‘Lords ice-cream parlour’ should undertake the task of sponsoring more social events such as concerts, cricket, football and other such tournaments to retain its popularity in the younger market segments. Emphasize should be given on TV commercials, to capture a greater share of the market. A proper customer help line should be developed to mitigate the further needs of the customer. Conclusion From an extensive marketing analysis of the ideas and marketing concepts at work in the operation of ‘Lords ice-cream parlour’, it is possible to obtain an insight to the essential marketing practices adopted by the company. Adherence to proper marketing strategies in terms of company objectives, paying heed to target consumers and potential and existing competitors, close relationship and liaison with distributors and suppliers ensure substantial market capitalization as indicated by ‘Lords ice-cream parlour’s market share of 63% in the ice cream industry. Evidently by virtue of its unique product attributes, high quality, exquisite and mouth- watering varieties of ice creams, attractive and distinct packaging, ‘Lords ice-cream parlour’ has been able to ensure marketing excellence and enhance its competitiveness. Today’s fiercely competitive environment compels ‘Lords ice-cream parlour’ to pursue the right set of pricing strategies, policies for effective segmentation and targeting, market oriented structures of distribution and retailing, which lies at the heart of the company’s success. Its new sales and distribution flow enables the company to achieve its desired goals. In its quest to create satisfying customer relationship and optimizing the performance of the entire system, ‘Lords ice-cream parlour’ has resorted to a system of timely distribution. With the combination of effective promotional campaign and advertisement in various media, it is able to retain valuable customers and inform them about multiple brands they are offering at present. Appendix This questionnaire is conducted only for educational purposes (For Customers Only) Name: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Profession†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. What is your age group? How long you are coming to this ice-cream parlous? Why have you chosen this place? Do you think ‘Lords ice-cream parlour’done a better job for their customers? What do you think about the product image of ‘Lords ice-cream parlour’? If you are satisfied then which factor- Do you think that ‘Lords ice-cream parlour’is one of the top ice-cream parlous? Manufacturing and Warehousing Capacity: Manufacturing Capacity: 530 liters per day. Warehousing Capacity: Warehouse No: 3 Nos Warehouse: Store Capacity Factory: 1,000 liters Technology and its usage of modern equipment: Machine Supplier: Mark – Italy Tetra pack (Hoyal), Denmark Sabore, Denmark Hass, Austria Machine Model: Free mark 1100, Italy FM 3000, FM 6000, Italy SL 600, Denmark Cone Baking: Hass, Austria Chocolate Making: Macentyre, UK.

The Complexities Of Cross Border Mergers Finance Essay - Free Essay Example

Sample details Pages: 10 Words: 3092 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? The fifty wave of mergers and acquisition took popularity in the stream ofcross border mergers(Wikipedia)In 1998, cross-border acquisitions accounted for around 80% of FDI outflows of united kingdom in the US, on average over the 1984-1995 period, crossborder acquisitions accounted for over 90% of US FDI inflows. Cross border mergers and acquisitions are playing an important role in the growth of international production Although the basic merger or acquisition is the same worldwide, undertaking a cross-border transaction is more complex than those conducted in market because of the multiple sets of laws, customs, cultures, currencies, and other factors that impact the process.-article 102 For the first time in recent history, in 2007, the value of cross-border deals equaled the value of intraborder MAs (Economist 2007a). Article 100 Cross border ma are generally initiated by either Capital market school-capital market prospective of mergers and acq uisitions looks into revenue that is generated by the bringing together of assets of two companies. Don’t waste time! Our writers will create an original "The Complexities Of Cross Border Mergers Finance Essay" essay for you Create order They believe that a new investor becomes the owner because he/she can manage the assets in a better way then it was earlier done. These economists highlight concepts such as capital asset pricing model,agency theory, EMH, and a market for corporate control. Strategy school- unlike the capital market school, which is dependent on aspects like impact on the market after post or prior to MA, this school is interested in knowing the impact on individual entity (e.g.-impact of a merger on both the companies balance sheets, trading, business, revenue etc) Organisational behaviour school- evidence suggest that acquisitions in the last 2 decades have been much surrounded by implementation problems and bad post acquisition performance (vermeulen and barkema 2001). This school takes into account the human behaviour on post merger integration. The ecomomist are more inclined towards finding the impact of cross border MS on individuals. YEAR DEAL NATURE OF DEAL 1907 Royal Dutch / Shell- Friendly 1930 Unilever Plc /Unilever NV Dual-Headed Structures 1988 GrandMet / Pillsbury HostileDeal 1989 SmithKline Beckman / Beecham ADRand Stapled Stock 1997 BAT/ Zurich Dual-Headed and Demerger 1998 DaimlerBenz/Chrysler Global Share 1999 Vodafone / AirTouch Contested StockDeal 1999 Alcan / Alusuisse / Pechiney 3-WayStockDeal 1999 Vodafone AirTouch /Mannesmann Hostile StockDeal WHY MERGERS AND ACQUISITIONS faced with continued pressure to grow profits and with substantial cash on the balance sheet However, in many industries-telecommunications and banking, for example-further national consolidation is constrained in more mature markets by antitrust regulations, forcing companies to look abroad for new targets. In addition, as competitors, suppliers and customers become more global in outlook, many companies are feeling the pressure to expand their geographic presence just to remain competitive. agency theory (Kesner et al., 1994), hubris (Weston and Weaver, 2001; Berkovich and Narayanan, 1993; Roll, 1986; Seth et al., 2000) and empire building (Trautwein, 1990) indicate the existence of more than one motive for MAs. Hitt et al. (2001) also suggested multiple motives for firms to complete CBMAs. Acquiring of foreign targets should benefit the acquirers in many ways. First, it offers better access to product market in the forms of new sources of demand and enhan ced possibilities of receiving favourable treatment from consumers and regulators in foreign markets. Second, it leads to relatively stable cash flows owing to reduced exposure to macro-economic risk through geographical diversification as the business cycles of various countries are unlikely to move together. Third, it offers opportunities of using local resources and technology that may help reduce the cost of production. Fourth, the increased access to foreign capital markets helps in lowering the cost of capital of the firm. Finally, multinational firms enjoy more investment opportunities than domestic firms while maintaining the opportunities available in home market. Such enhanced business opportunities suggest that (a) acquisition of a foreign target should increase the value of bidder and (b) the gains CBAs should be higher than the gains from domestic target acquisitions. These should be reflected in both announcement period and long-term pe rformance of acquirers. There are a number of reasons why a corporation will merge with, acquire, or be acquired by another corporation. Sometimes, corporations can produce goods or services more efficiently if they combine their efforts and facilities. These efficiency gains may come simply by virtue of the size of the combined company; it may be cheaper to produce goods on a larger scale. Collaborating or sharing expertise may achieve gains in efficiency, or a company might have underutilized assets the other company can better use. Also, a change in management may make the company more profitable. Other reasons for acquisitions have to do more withÂÂ  hubrisÂÂ  and power. The management of an acquiring company may be motivated more by the desire to manage ever-larger companies than by any possible gains in efficiency. To facilitate faster entry into foreign market Increase market power Access to and acquisition of new resources and technology Diversification Improved management Synergy Managerial motive K. Shimizu et al. / Journal of International Management 10 (2004) 307-353 RECENT TRENDS The size of private equity has increased doubling the size of global mergers and acquisitions deals. The new figures show that private equity in cross border mergers and acquisitions is around 31% (2004-2007).new market player including financial corporations and sovereign wealth fund have entered the market. A survey by Accenture group reveals that 20% of the future growth will come from mergers and acquisitions Despite the current tightening of credit and general economic uncertainty, one area of business activity has remained surprisingly robust: MA. Although many players sat on the sidelines for the first half of 2008, global deal volume during the previous two years surpassed the record-breaking levels set in 2000. Moreover, the need for corporate growth and the availability of financing from new sources are likely to reignite the merger market boom and keep it going for the foreseeable future. The role of private equity has grown dramatically, doubling its share in global MA deals-accounting for more than 31 percent of transactions in the current MA wave (2004-2007) compared with the prior MA wave (1995-2000.) Other new investors, including corporations and sovereign wealth funds from emerging markets, have entered the MA arena. But the most significant trend has been the growth in the number of cross-border transactions, which now account for almost half of total MA deal value. While the majority of MAs involve two firms within the same country, over 40% of the MAs that were completed between 1999 and 2000 involved firms headquartered in two different countries (Hitt et al., 2001a,b) Cross-border MAs pose tremendous challenges, in particular, at the postacquisition stage (Child et al., 2001). Recent evidence suggests that they are not highly successful. For instance, a study by KPMG found approximately that only 17% of crossborder acquisitions created shareholder value, while 53% destroyed it (Economist, 1999 ). Complexities- article 102 foreign target acquisition increases the risk of the acquirer for several reasons. First, acquisition of a foreign target exposes the firm to wider range of transactions and translations risks. These may result in higher volatility in cash flows, earnings and net assets. Second, it exposes the acquirer to political risks such as threat of nationalization by host government, changes in host governments attitude towards foreign investment and amendments in financial regulations such as custom duties, taxes etc. that may affect bidders cash-flow adversely. Finally, due to differences in legal and cultural factors the agency cost of managing a foreign subsidiary is likely to be higher than running a domestic subsidiary. These factors are likely to push the cost of capital 6 which in turn reduces the value of the bidder. This suggests that, ceteris paribus, bidders of domestic targets, which are not exposed to these risk s, should perform better than bidders engaged in CBAs. Therefore, whether CBAs are superior to domestic acquisitions is an empirical issue as it addressed in the paper. The dynamics of cross-border MAs are largely similar to those of domestic MAs. However, due to their international nature, they also involve unique challenges, as countries have different economic, institutional (i.e., regulatory), and cultural structures (Hofstede, 1980; House et al., 2002) Flowback, Or I Dont Want Your Stock WhenÂÂ  foreign investorsÂÂ  perform a massive sell-off of a companys cross-listed sharesÂÂ  back to the country of issuanceÂÂ  as a result of an impending cross-border merger Flowback may be the biggest obstacle to the feasibility of cross-border mergers. Put simply, flowback is the unwillingness of target-company shareholders to hold foreign-domiciled equity of the acquirer. This sentiment is common among indexers and quasi-indexers; if themerged firm will not be indexed in the targets country, there is little incentive for these investors to hold the shares and a large incentive to sell. Many important stock indices, including the SP 500, no longer admit foreign-domiciled issuers. tax or currency issues-cross border mergers have complex tax structures which makes then deal even more complicated. Althought the government provides tax incentives Despite some harmonised rules, taxation issues are mainly dealt with in national rules, and are not always f ully clear or exhaustive to ascertain the tax impact of a cross-border merger or acquisition. This uncertainty on tax arrangements sometimes requires seeking for special agreements or arrangements from the tax authorities on an ad hoc basis, whereas in the case of a domestic deal the process is much more deterministic This uncertainty on tax arrangements sometimes requires seeking for special agreements or arrangements from the tax authorities on an ad hoc basis. The uncertainty on VAT regime applicable to financial products and services may put at risk thebusiness model or envisaged synergies . A group operating across several Member States may wish to centralize support functions to increase operating efficiency. But in many cases the result will include creating a VAT penalty on the inter group supply of services increase operating efficiency. But in many cases the result will include creating a VAT penalty on the inter group supply of services significant antitrust or non competition issues which law would be applicable- Take the case ofÂÂ  Tata Steels acquisition of UKs Corus, where the initial strains have begun to show through labour issues and could likely result in labour strikes on account of Tata Steels decision to mothball its Teesside unit in northeastern England. POLITICS AND ANTITRUST Politics still plays a role in cross-border MA-but to varying effect. In some cases, the reluctance of state shareholders to sell to foreign firms has scuttled planned transactions (although the quickening pace of privatization, particularly in Europe, should diminish these concerns). Reluctance to cede jobs and tax revenues to other states is another, potentially more enduring, obstacle. In other cases, political concerns about domestic competition and antitrust may in fact accelerate cross-border consolidation, as companies with fewoptions at home are forced to seek scale abroad. ÂÂ  The cultural complexities. One of the biggest challenges in a cross-border MA transaction is overcoming cultural and business differences. Understanding the culture, regulatory environment, benefits philosophy, customer expectations, working habits and marketing strategy of a company adds layers of complexity to a deal. Clashes in country and company cultures can easily trum p business objectives and derail a deal. Body intensity of MA activity is significantly higher in countries with better investor protection. International market for corporate control targets firms in countries with weaker corporate governance practices Zechner (2001) and Reese and Weisbach (2002) show that firms from countries with weak legal protection for minority shareholders list abroad more frequently than firms from other countries. Investor protection increases the demand for MA activity. Mearly pricing and valuation is not a good approach for final decision of whether to acquire or not. Every long term effect of the deal should be taken into concideration. Legal barriers Cross border mergers or acquisitions is a complicated transaction which involves numerous participants legal as well as private. A cross border deal (of a large firm or, of a important sector like mining, power, telecom) is actively contemplated by regulators and govt for possible flaws. There are often regulated by laws, local rules and regulatory restrictions.even at times when the bids are actually friendly takeovers acquirers are disadvantages by a potential lack of information and legal restrictions from the govt. countries having rigid legal system which leads to foggy decision ability. The bidder might not be aware of where the bid could fail or be rejected and on what grounds. In some countries the company law allows the companies to adopt defence tactics like poison pill, dual voting to prevent hostile takeovers. These efects discourages companies to take such a costly action Blocking cross-border mergers REGULATORY LAW : MA are regulated by both state and federal laws. State law sets procedures to be followed while approving a merger or a acquisition. It also establishes legal enforceability of these laws so that the acquired company and its shareholders are given a fair compensation. Law does not create any obstacle in the deal unless a question of who has the authority to regulate or govern a deal arises.m Main body We find that cross-border MAs are more likely to occur in countries where foreign institutions hold a higher fraction of the local stock market. Previous studies on cross-border MAs focus on country-level governance aspects. Rossi and Volpin (2004) find that targets in cross-border MA deals are more frequently from countries with weaker investor protection than their acquirers country, suggesting a convergence in governance standards. Starks and Wei (2004) and Bris and Cabolis (2008) find a higher takeover premium when investor protection in the acquirers country is stronger than in the targets country. In view of miller and Whitman, Ragazzi, black Stulz foreign direct investment (FDI) is the product of such factors as (a) imperfections in the product and factors markets, (b) different taxation, and (c) imperfections in the international financial markets. Effect of cross border merger and acquisition on share holder wealth cross-border transactions result in significant wealth destruction for shareholders while domestic transactions result in value generation for shareholders of German acquirers. Legal, economic or cultural obstacles to cross-border transactions, information imperfection and difficulties in post-merger integration due to cultural differences may have contributed to the negative cumulative abnormal returns to shareholders of cross-border transactions. A majority vote of shareholders is generally required to approve a merger La Porta et al. (1997) showed that investors in common-law countries enjoy the highest level of protection, while investors in civil-law countries receive the lowest. Rossi and Volpin (2004) show a strong positive relationship between takeover premiums and investor protection, suggesting that acquirers pay higher premiums when they acquire targets from countries that have better investor protection. Errunza and Senbet (1981, 1984), Kim and Lyn (19 86), and Morck and Yeung (1991) report a significantly positive relation between internationalisation and firm value. Bodnar, Tang and Weintrop (2003) corroborate the prior evidence on the positive effects of corporate international diversification on firm value, whereas Christophe (1997) and Denis, Denis and Yost (2002) find evidence that international operations lead to value destruction. Marcelo B. Dos Santos, Vihang R. Errunza and Darius P. Miller* evaluated 136 cross border mergers and acquisitions from the acquirers of foreign target firms between 1990-1999 and find no evidence on average of any statistically significant decrease in the excess value of the U.S. acquiring firms in 2 years surrounding the deal. Also they use similar valuation methodology as in Bodnar, Tang and Weintrop (2003) and Denis, Denis and Yost (2002), which represents a variation of the industry-matched multiplier approach. Their results advice that a cross border acquisition does no t result in value destruction. They find that related cross border mergers and acquisition does not lead to value destruction and unrelated cross border merger and acquisition leads to value destruction. Fatemi and Furtado (1988), Markides and Ittner (1994) and Datta and Puia (1995) all of which find either non-significant positive abnormal returns or, in the case of Datta and Puia, negative abnormal returns John Doukas And Nickolaos g. Travolis discuss how firms engaging in international expansion by acquiring foreign corporations with an intension to maximise shareloders wealth. Their results suggest that shareholders of firms not already operating in the target firms country get the best benefit from the acquisition, In terms of non-US countries, Kang (1993) investigates the abnormal returns of Japanese bidders in the US and finds positive abnormal returns to Japanese firms. Corhay and Rad (2000) find weak evidence that cross-border acquisitions are wealth -creating based on a sample of Dutch firms They also find evidence that the benefits from internalisation are greater for firms having less international exposure and making acquisitions outside their main industrial activity. In terms of cross-country comparisons, Eun et al. (1996) have shown that the returns to acquiring firms are likely to vary across countries. Examining Cross-border acquisitions in the US, they show that bidding firms sourced from Japan experienced positive abnormal returns while UK firms experienced considerable negative abnormal returns. Acquiring firms based in Canada experienced mildly positive abnormal returns that were considerably below those experienced by Japanese firms.4 Cakici et al. (1996) also report significantly positive abnormal returns around the event date for acquirers from Japan, Australia, the UK and the Netherlands. These studies suggest that positive abnormal returns are likely to vary depending upon the characteristics of the investing firms, the country of origin, and the country and/or industry in which the acquiring firm is investing in Hidden weaknesses/problems in acquired companies lead to over-optimistic expectations of the acquirer or failure to anticipate difficulties Strong internal/external pressures for swift decision-making encourage a financial focus as opposed to the assessment of crucial operational or cultural issues. Control by very few people with a limited time commitment or continuity throughout the pre- and post integration process. Frequently there is no a formal function/team taking responsibility to systematically control MA projects. Lack of processes in place to deal with the complex organisational dynamics necessary in pursuing MA synergies. Merged companies frequently take years to deliver full organisational integration. SOME MERGERS AND ACQUISITIONS Failure of General Motors (GM) AND Daewoo (one of the key players of the automotive industry) joint venture in 1980s was a result of differences in the approach of the managers. Daewoo executives wanted the venture to achieve net growth even thought the venture was running in net losses. But GM Wanted to reduce operations in order to increase the profits. eventually this led to a disagreement which was to be discontinued. This led to a great loss to bothd the companies in terms of investment and valuable time. This is a very good example of a friendly merger which can be unsuccessful due to changes in opinions.

Snowy Owl Facts

Snowy owls (Bubo scandiacus) are the heaviest owls in the United States. They are notable for their striking white plumage and their extreme northerly range which includes tundra habitat throughout Alaska, Canada, and Eurasia. While they are relatively rare, they are often spotted in winter when they hunt in windswept fields or dunes. Fast Facts: Snowy Owl Scientific Name: Bubo scandiacusCommon Names: Arctic owls, great white owls, white owls, Harfangs, American snowy owls, snowy owls, ghost owls, tundra ghosts, ookpiks, ermine owls, Scandinavian nightbirds, and highland tundra owlsBasic Animal Group:  BirdSize: Body: 20 to 28 inches; wingspan: 4.2 to 4.8 feetWeight: 3.5–6.5 poundsLifespan: 10 yearsDiet:  CarnivoreHabitat:  Northern United States, parts of Canada; migration takes them to parts of Europe and AsiaPopulation:  200,000Conservation  Status:  Vulnerable   Description The plumage of an adult male snowy owl is mostly white with few dark markings. Females and young owls have a sprinkling of darker feathers that form spots or bars over their wings, breast, upper parts and the back of their head. This speckling offers superb camouflage and enables juveniles and females to blend well with the summertime colors and textures of the tundras vegetation. During the nesting season, females are often are heavily soiled on their underside from sitting on the nest. Snowy owls have bright yellow eyes and a black bill. Vicki Jauron, Babylon and Beyond Photography / Getty Images Habitat and Distribution Snowy owls range from the western Aleutians in Alaska to northeastern Manitoba, northern Quebec, Labrador, and the northern United States. They are primarily tundra birds although they sometimes also inhabit grasslands. They venture into forests only on very rare occasions, if ever. During the winter, snowy owls often move southward. During their migration, they are sometimes seen along coastlines and lake shores. They sometimes stop at airports, possibly because they offer them the wide-open habitat they prefer. During the breeding season, which snowy owls spend in the Arctic, they nest on small rises in the tundra where the female carves out a scrape or shallow depression in the ground in which to lay her eggs. Snowy owls rely on prey populations that fluctuate significantly over time. As a result, snowy owls are nomadic birds and go wherever there are ample food resources at any particular time. During normal years, snowy owls remain in the northernmost parts of Alaska, Canada, and Eurasia. But in seasons when prey is not abundant in the northern stretches of their range, snowy owls move further southward. Occasionally, snowy owls move to regions that are farther south than their normal range. For example, during the years of 1945 through 1946, snow owls made a widespread, coast-to-coast incursion into the southern stretches of Canada and the northern parts of the United States. Then in 1966 and 1967, snowy owls moved deeply into the Pacific Northwest region. These incursions have coincided with cyclic declines in the lemming population. Diet During the breeding season, snowy owls survive on a diet that consists of lemmings and voles. In parts of their range where lemmings and voles are absent, such as the Shetland Islands, snowy owls feed on rabbits or chicks of wading birds. Behavior Unlike most owls, snowy owls are primarily diurnal birds, usually active during the day, from dawn to dusk. Sometimes snowy owls do hunt at night. It is important to remember that within their Arctic range, snowy owls experience long summer days and hunting at night simply isnt an option as there are few or no hours of darkness. The opposite is true in winter when day length shortens and hunting during daylight hours is reduced or eliminated as the sun remains below the horizon for long stretches of time. Outside the breeding season, snowy owls make very few vocalizations. During the breeding season, snowy owls are a bit more vocal. Males make a barking kre or krek-krek call. Females produce a loud whistling or mewling pyee-pyee or prek-prek sound. Snowy owls also produce a low-pitched hoot that carries through the air for long distances and can be heard as much as 10 kilometers away. Other sounds snowy owls make include hissing, bill snapping and a clapping sound believed to be created by clicking the tongue. Reproduction and Offspring Normally, snowy owls lay between five and eight eggs per clutch. But in good years when prey such as lemmings is abundant, they lay as many as 14 eggs per clutch. Female snowy owls lay their 2.2 inch long eggs at two-day intervals so that the young emerge from the egg at different times. Mud-brown hatchlings emerge from their eggs at about the size of a newly-hatched chicken. Hatchlings in the same nest are of differing ages, with some having hatched as much as two weeks apart. Snowy owl chicks weigh only about 45 grams at birth, but they grow rapidly, gaining about three grams each day. They mature over the course of two years, at which point they weigh approximately 4.5 pounds. Javier Piva Flos/Getty Images   Conservation Status There are approximately 200,000 snowy owls in North America. Despite conservation efforts, these unique owls are now considered to be a vulnerable species. While breeding areas are usually far away from human interference, climate change is impacting the snowy owls Arctic habitat; the number of these birds is on the decline. Relatives of the Horned Owl Until recently, snowy owls were the only member of the genus Nyctea but recent molecular studies showed snowy owls to be close relatives of the horned owls. As a result, taxonomists have moved snowy owls to the genus Bubo. Other members of the genus Bubo include the American horned owls and the Old World eagle-owls. Like other horned owls, snowy owls have ear tufts but they are small and usually kept tucked away. Sources â€Å"Basic Facts About Snowy Owls.†Ã‚  Defenders of Wildlife, 10 Jan. 2019, defenders.org/snowy-owl/basic-facts.â€Å"Snowy Owl.†Ã‚  Audubon, 21 Mar. 2019, www.audubon.org/field-guide/bird/snowy-owl.â€Å"Snowy Owl.†Ã‚  National Geographic, 24 Sept. 2018, www.nationalgeographic.com/animals/birds/s/snowy-owl/.

The American Revolution - 993 Words

The topic of the American Revolution is a topic that has been discussed on multiple levels and is extremely well-known, especially within the United States. The details are a little on the generic and basic side but it is at least understood on some level. Most people are aware of the American standpoint, the what, why, how, and when, but there is much more depth to what occurred. The war was obviously between the Americas and the Mother country of Britain, but there were more than just those two parties involved in the war. More people had a stake in the matter. They had many things to gain and just as many, or possible even more to lose. The French played a role in helping the colonists win the revolution but another underrated group of people in the war were the Indians. Another well-known fact is the land issue between the Americans and the Natives. The Americans were constantly butting heads with the Indians and pushing for more land. During the revolution the Natives chose the side of the British for the most part, and as all know, were on the losing side. Would it have mattered in the land issues if they had chosen differently, or would the same outcome have eventually happened? In all honesty, maybe over a longer time frame, the land would have eventually still ended up in the hands of the Americans. The war for the Native Americans was going on long before the colonists decided to fight for their rights and eventually their independence from Britain. There wasShow MoreRelatedThe American Revolution : The Revolution1367 Words   |  6 PagesThe American Revolution Revolutionizes the World It was the first revolution to majorly succeed and change how people saw their countries, it was the American Revolution. 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The upheaval was a primitive modern revolution in which generality traversed for liberty in the statute of law, constitutional privilege and supremacy. Ensuing years of contentionRead MoreThe American Revolution889 Words   |  4 PagesThe American Revolution was one of the most vital events in American History lasting form 1775 to 1783, it effected the nation socially, economically and politically. The American Revolution brought upon many changes in America, and freedom of the nation. The Revolutionary War was a stepping stone to what we are as a nation today, it created both short and long-term effects on the world. When wanting to blame a certain side, the British politicians or the American agitators, several key points leadRead MoreThe American Revolution877 Words   |  4 Pagespeople believe the American Revolution is strictly liberal, in truth it is conservative evidenced by the new British policies, colonial reactions and the examinations of what it means to be conservative vs. liberal. The American Revolution was triggered, by many laws that were passed between 1763 and 1775 that controlled trade and taxes. This legislation caused pressure between colonists and imperial officers, who had made it clear that the British Parliament would not address American complaints relating

Photographic portraiture Essay Example For Students

Photographic portraiture Essay -Recent and Current Trends and Influences in Portrait Photography-Many photographers in the past have had dynamic careers that have influenced many up and coming photographers and will for years to come. Because their work at the time has been preserved in inspirational and innovative images of their eras rock legends and cultural icons, similarities yet progressions can been seen through a comparison of photographers such as David Bailey, Anne Liebovitz and Rankin one of todays most talked photographers. David Baileys career was at a high between the years of 1957 and 1969 and was most famous for his striking black and white images of icons including John lennon and Paul McCartney; Mick Jagger, Jean Shrimpton and the Kray Twins. At this time Bailey was making a revolutionary progression to 35mm cameras at the beginning of the 60s. The SLR camera Bailey purchased in 61 allowed him the flexibility to loosen up the fashion genre. For example on of his early fashion shoots for Vogue Young idea goes west featured Jean Shrimpton in the chaotic urban environment of New York. These photographs epitomized a new street realism and marked a drastic departure from the Static formally posed fashion and portrait photography of the previous decade. Baileys mapping of the 60s was marked by two collections of portraits; David Baileys Box of Pin-ups in 1965 and Goodbye Baby and Amen in 1969. Powerful portraits of musicians including Mick Jagger, Lennon and McCartney reflect the stature of these 60s me dia heroes in these volumes. And actors such as Michael Caine and Marianne Faithful. Along with models Jean Shrimpton and Sue Murray. Baileys portraits are characterized by close cropping, strong lighting and often stark, bare backgrounds; which have given them a dramatic and enduring intensity. With most of his models Bailey had a very close rapport that brought a certain level of intimacy to his photographs, which was unique amongst his contemporaries. Some examples of his work can be seen on page six. In these examples you can clearly see Baileys simple yet distinctive style, the two small photographs of Michael Caine and Mick Jagger clearly show that Bailey has lit the subject with either one or two softboxes from the front or 45 degrees and has also lit the background very strongly to allow the model to stand out more clearly from the background. Baileys photographs seem to be quite contrasting and he uses quite harsh side lighting on Micheal Caine it makes the character appear to be very strong and threatening which may have been Baileys intention. Bailey remains still as active as ever and has continuing importance as a portrait photographer evident in his contemporary photographs of Naomi Campbell, Amber Valetta, Johnny Depp and Ralph Fiennes. Anne Liebovitz whose career has to be renowned for her work for Rolling Stones magazine was spread throughout the years of 1970 to 1990, and alike Bailey she had a very close rapport with many of her models and often caught them in natural off-guard moments. Her portraits were very different from her contemporaries, she very rarely used studio set-ups and even when she did they were unlike and ordinary portraits. Anne tried to capture a side of the celebrities and icons that had never been seen before and often created a surreal looking moment. Her style was very different from Baileys, instead of close cropping and stark backgrounds which was a very well used technique in Baileys studios; she would give every mo del a different personality and look to what the public eye was familiar with. Many of her photographs use the body as well as the face as a means of expression, which is unusual for a portraitist. One of her portraits, which represent the era very well, is one of Arnold Schwarzenegger taken in 1979. It is an excellent representation of the all out obsession with self-maintenance and gym mania that took place in the eighties. In contrast its so different to the portraits in which all you see in a body armour that most individuals seem to need. Annes pictures represent people relating to each other in a non-defensive way; this is only possible because of the close relationships she has with her models. One of the best examples of her work is the last portrait of John Lennon and Yoko Ono. This represents the close relationship she was able to build with her models and also using the foetal position shows her use of the human body as a means of expression, this portrait is very strong graphically and yet emotionally it creates a powerful image by itself. In many of her portraits some of her equipment can be seen, for example: lighting, stands, backdrops she makes the shoots seem casual and make do. Many photographers have tried to import this style in to their work. Anne uses the surroundings in her portraits to represent a side of her models career or personality that has never been seen before. Her subjects range from being on tour with the Rolling Stones to portraits of Bette Midler, Liberace, actress Amanda Plummer, Clint Eastwood and Bruce Springsteen. And recently was the photographer requested to tour with mega group Oasis. Abstract Paragraph EssayA likeness can be seen in all of the talked about photographers work mainly because they were and are very much in the rock and roll scene! Especially Anne Liebovitz and David Bailey, although they worked very differently. David Bailey alike Rankin uses very simple sets and lighting techniques where as on the other hand; Liebovitz may seem to use simple lighting and studio set-ups. Everything is strategically placed and lit, and she is known for her complicated lighting techniques, some may say she is a perfectionist or maybe even an obsessive. Each of these photographers I have talked about are strong and independent characters each of which does not look for approval or praise from their work. They are on personal missions and journeys to see how far their mind will stretch in to the new and never done before. Bibliography: www. Rankin.co.uk, Amateur Photography magazine Photographs Anne Liebovitz 1970 to 1990 National Museum of Photography, film and TV

The Role of Unions in Improving and Disrupting an Organizations Culture Essay Example

The Role of Unions in Improving and Disrupting an Organizations Culture Essay The Role of Unions in Improving and Disrupting an Organization’s Culture Describing and identifying the importance of abstract terms is a difficult task because their meaning rely more on substance than form. For this and other reasons, individuals as well as organizations tend to overlook or underestimate their importance for a successful career and for the effective functioning of an organization. Organizational Culture† is one of those terms, we can’t see it, but we can feel and experience it, and it has a profound impact in the way people behave in an organization. It denotes the attitudes, experiences, beliefs, and values of the work group or team within the organization, which to an extent affect the organization as a whole. All employees whatever their grade is, and whether they are professionals or not, contribute to the culture of an organization by bringing their diverse talents, knowledge, skills, values, and beliefs to the entity. Employees may possess abilities and talents that might enable them to fit into the organization and empower it, partly as a result of socialization, but they might need assistance from others, such as Human Resource Development specialists and Union cooperative efforts, in order to learn the skills that will enable them to play their part in the team, group, or department. The culture of an organization is important not only to individuals but to the organization itself. This makes culture an important part of every organization and union leaders and management need to understand the central role it plays in forming an effective organization. Union understanding of the important role culture play for an organization is essential since the recognition of unions and the labor agreement usually means structural changes to an organization’s policies, practices, strategies, and the environment. According to Neal M. Ashkanasy, author of the book Handbook of Organizational Culture and Climate, more and more practitioners are coming to realize that, despite the best-laid plans, organizational change must include not only changing structures and processes, but also changing the corporate culture as well. We will write a custom essay sample on The Role of Unions in Improving and Disrupting an Organizations Culture specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Role of Unions in Improving and Disrupting an Organizations Culture specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Role of Unions in Improving and Disrupting an Organizations Culture specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Unions can play a role in creating and changing an organization’s culture, since they are in a position to provide the workforce with information designed to influence decisions about work practices, rules, preferred behaviors and attitudes, etc. Management as well as staff developers need, therefore, to communicate frequently with trade union officers. Improving organizational culture has become a necessity in todays ever- changing business environment. However, it can be a big challenge for the organization and its members. Managing in a union environment can be frustrating and confusing. Managers in a unionized workplace are challenged to manage effectively within legal and contractual parameters. This make the decision-making process more difficult for managers who must count with the union approval for many decisions and changes that might conflict with the labor agreement. If managers are not flexible in outcome, or are too specialized, then the organization may become too narrowly focused and the motivation and creative thought, a necessary precursor for innovation may be stiffed. Also, although individual ideas are important, strategies for team-working are essential. One of the primary responsibilities of strategic leaders is to create and maintain the organizational characteristics that reward and encourage collective effort (Neal M. Ashkanasy, 10). Individuals should be motivated to work as part of a team sharing a common vision of the direction in which they would like the organization to develop. To this end, unions are one of the most effective institutions that can be used to bring people that share common interests, goals, and principles together and motivate them to work as a team, since the mechanism of the union itself encourages team participation. Today, organizational leaders are confronted with many complex issues during their attempts to generate organizational achievement. A leaders success will depend, to a great extent, upon understanding organizational culture. Paul Clark, author of the book Building More Effective Unions contends that â€Å"Many of the problems confronting leaders can be traced to their inability to analyze and evaluate organizational cultures. † Many leaders, when trying to implement new strategies or a strategic plan leading to a new vision, will discover that their strategies will fail if they are inconsistent with the organizations culture. For example, a CEO, SES, political appointee, or flag officer who comes into an organization prepared to shake the place up and institute sweeping changes, often experiences resistance to changes and failure. These difficulties with organizational transformations arise from failures to analyze an organizations existing culture. According to Franklin Ashby, author of the book Revitalize your Corporate Culture, â€Å"When an organization has a union, most of the culture of the organization is dictated by the union contract, and the on-going relationship with the union. Unless Union cooperation is obtained, little can be done to change the culture of an organization. However, Unions often resist change to protect the interests of their members. One of the strongest cultures in the United States is the United Automobile Workers. Over the years and through many negotiations, they have established work rules that workers and companies must follow. These are now an integral part of the organizational culture of the Big Three Automobile Makers. For example, when competition from Japanese car makers cause the Big Three U. S. utomobile firms a significant loss of market share, the organizational culture of American Auto manufacturers had to be changed. This could be accomplished only through negotiation with the union. Although some labor leaders oppose any change they feel may weaken the union’s position, more and more enlightened labor union leaders are moving from an adversarial to a more cooperative philosophy (Franklin Ashby, 3). According to Paul F. Clark, author of the book Building More Effective Unions, â€Å"Most efforts to change an organization’s culture will meet with some resistance. A systematic approach to change is most effective in meeting such resistance. Many of us are familiar with the slogans, songs, jackets, parades, banquets, and picnics of unions because they are all part of the labor movement. To some they are simply windows dressing, unconnected to the important things that build an effective union. But, in fact, these things are part of a potentially and powerful phenomenon called â€Å"organizational culture† (Paul F. Clark, 10). It is important that unions understand the central role that culture plays in an effective organization and work to build a strong culture consistent with the union as well as the organization’s values, beliefs, and objectives. This is essential to avoid conflict by having two different cultures with different organizational objectives in the same company. Although one general culture might be ideal and best for an organization, subcultures exist and they do not necessarily exist to hurt the overall culture of the organization as long as the culture that involves the common interest of most members is accepted and recognized. The existence of subcultures is normal. In an organization with a strong culture, subcultures created by union members do not cause problems because the overall values and beliefs of the group are well recognized and accepted. If the culture of an organization is week, however, subcultures can override and compete with the overall culture, which can be disruptive to the organization’s culture. In his analysis, Paul Clark mentions that the effectiveness of a culture can be measured by the degree to which that culture and its various elements and subcultures clearly communicate the values of the organization. One of the core values emphasized by unions is the welfare of the collective group. Towards this end unions emphasize the principles of solidarity, unity, and togetherness. One common aspect of union culture that helps to communicate these values is the use of the terms â€Å"brother† and â€Å"sister† to refer to union members (Paul F. Clark, 6). Other values held in great regard by unions are fairness, equity, and justice. Unions help improve an organization’s culture by enforcing these values whenever they are violated or necessary for the welfare of employees. For example, managers often complaint about the tendency of unions to challenge through the grievance procedure many of the disciplinary actions taken by management. However, such challenge simply reflects the value that unions and union members place on due process and the fairness it brings to the workplace. By challenging any questionable management decision, unions are forcing management to evaluate the fairness of every action they take, before they take it. The member-union contract has an impact not only on union attachment, attitudes, and behaviors, but also on how it affects organizational culture. In summarizing the findings of their widely cited book, What Do Unions Do? Freeman and Medoff conclude that â€Å"Unions alter nearly every aspect of an organization’s culture. † The authors suggest that unions exert effects on organizational culture through collective bargaining. The primary effects of collective bargaining are the gains that the union is able to realize at the bargaining table for the employees. For example, extrinsic benefits like wages, job security, and working conditions, are all concerns that have dominated the collective bargaining agenda of North American Unions. Gains in these areas are determined primarily by the union’s ability to acquire and use power in the bargaining relationship. For example, the union wage effect is largely dependent on the ability of the union to achieve monopoly power within an industry. It is important to note that the union effects on organizational culture are also outcomes that emerge though management’s reaction to collective bargaining provisions. Management’s adjustment to the conditions imposed by collective bargaining and the union’s counteraction to managerial action will determine the nature and extent of union effects on organizational culture. The ability of unions to achieve their goals in areas such as wages, job security, and working conditions have important ramifications for organization culture both within the union and within the organization. For example, unions have a direct effect on the level, form, structure, and system of compensation plans. Through effective bargaining unions can improve an organization’s culture by emphasizing and enforcing the values, principles, and beliefs the members of the organization consider important. For example, the union can achieve fairness and equity with wage increases and justice and dignity with provisions for job security and better working conditions. Although these effects wary across industry and individuals, some general conclusion may be drawn. First, and most important, unions raise wages. Estimates of union wage effect wary but in general wage levels in unionized industries are 10 to 20% higher than wages for comparable non-unionized industries (William Holley, 324). Similarly, unions have a positive impact on employee benefits with unionized industries spending more on fringe benefits than comparable non-unionized firms. Job security is another factor through which unions help improves an organization’s culture concern for layoffs. For example, collective agreements often contain clauses that directly influence individual’s job security such as provisions for layoffs, job transfers, and contracting out. The prevalence of such provisions indicates the high priority placed on job security by union members. Based on the Quality of Employment Survey data, union membership was the best predictor of whether individuals would trade a 10% increase in real wages in exchange for increased job security. Unions also increase the security of their members from arbitrary decision making though the provision of grievance systems. Through the implementation of grievance systems with provisions for third-party dispute resolution, unions substantially increase the costs of arbitrary management decisions. As mentioned by Julian Barling, Author of the book The Union its Members, One would expect, and empirical evidence confirms that â€Å"Management decision making in a unionized environment would be more regulated by formal procedures and based on more objective criteria. Other areas in which Union have helped to improve an organization’s culture is through their intensive efforts to improve occupational health and safety in the workplace by advocating for government regulations, negotiating health and safety provisions, and encouraging the formation of labor-management committees to deal with health and safety issues. In additional to the negotiation of clauses dealing with health and safety, unions may also negotiate compensating wage differentials for workers exposed to higher risks. By doing so, they increase the incentive for management to improve working conditions by increasing the cost of dangerous work. Overall, unions substantially increase awareness of health and safety issues in the workplace. In addition to safety and health issues, unions also negotiate contact provisions dealing with a variety of working condition (William Holley, 435). For instance, hours of work, scheduling of rest breaks, and, in some cases, and rate of production. To the extent that unions are successful in negotiating these gains, unionization may have an indirect effect on occupational health and safety. Provisions such as rest breaks, minimization of overtime, and shift scheduling may all affect the risk of on-the-job injury. According to Clive Fullagar, the Neo-Classical Economic Theory suggests that â€Å"Management may react to the increased costs associated with unionization by replacing labor with capital. However, an alternate theory suggests that unionization has â€Å"shock effect† on management, whereby management reacts to unionization by becoming more efficient. † Such increased efficiency may be evidenced by the introduction of centralized, professional human resources functions and increased reliance on formalized decision making. Union involvement in the formulation of management decisions may be seen as usurping the rights of management to run the workplace. On the other hand, collective bargaining maybe e viewed as a way of managing the workplace rather than an abandonment of traditional management prerogatives. In this regard, it should be noted that through their involvement in establishing work rules and organizational policies, unions may have both positive and negative effects on organizational culture. The impact of unions in managerial decision making is seen clearly in the development of personal policies. It is commonly recognized that unions influence the use of seniority as a criteria for promotions and job transfers. Unions also have an effect on hiring decisions. For example, one managerial response to wage premiums maybe to raise the hiring standards of the firm and in particular to place more emphasis on education as a hiring criteria. The presence of a union may result in the implementation of policies that are in the organization’s best interest. Thus, the presence of a union is associated with more efficient managerial decision making. In particular, this increased efficiency is attributable to the formalization of decision making and the substitution of policy for individual judgment as a basis for decision making. As the preceding discussion indicates, unions have substantial effects on organizational culture through the negotiation of specific provisions in the collective agreement. Additional union effects on organizational culture also accrue during the administration of the collective agreement as management and the union adjusts to the new environmental conditions mandated by the collective agreement. Unions improve organizational culture by supporting, developing, and enforcing values, beliefs, attitudes that are of importance to the members of the organization. As a result, this has a direct effect at increasing productivity and performance. Freeman and Medoff have concluded that unions substantially increase the productivity of organizations. That is, after controlling for various organizational characterizes, unionized firms are more productive than their non-unionized counterparts. However, nionized firms are found to be less profitable than non-unionized firms because the increase in productive do not seem to offset the increased costs of unionization. Freeman and Medoff point out that â€Å"The union impact on the firm’s productivity can be explained by two factors. † First, unionization leads to a more stable workforce by reducing voluntary turnover. A direct consequence of this increase stability is the firm’s investment in human resources management. Second, the union effect on productivity provides a conceptual basis for the hypothesis that unionization may have an effect on individual job performance. For example, through more rigorous selection, investment in employee training, and the institution of more professional management practices, an organization attempts to adjust to the cost of unionism by increasing individual job performance. While the end result of such strategies is an increase in firm productivity, the initial effect is plausibly an increase in individual job performance. It is imperative to note that the union’s effect on firm productivity is moderated by the quality of union-management relations. When the industrial relation climate is favorable, unionization is associated with higher firm productivity. Conversely, a poor quality of union-management relations is associated with decreased productivity in unionized firms. The quality of union-management relationships influences the motivation of employees. When the quality of union management relations is poor, the potential for increments in job performance maybe be offset by decreased individual motivation, work stoppages, and work-to-rule campaigns. Perhaps one of the most well documented effects of unions in organizational culture is the reduction in voluntary employee turnover in unionized industries. According to Clive Fullagar, unions help to reduce turnover in two different ways. First, unions increase wages and improve working conditions. These primary union effects make unionized jobs more attractive and conversely reduce the likelihood of finding an equivalent job. The union affects on benefits and particularly the increase in deferred compensation schemes that favor senior workers, contribute to the union effect on turnover. Similarly, benefits based on seniority also help to decrease the voluntary turnover rate. Second, unions reduce turnover by providing individuals with a voice. Through the provision of employee grievance systems, unions provide the individual an alternative to quitting, the opportunity to redress specific dissatisfactions through the grievance system. Unions provide mechanism for individual to express their dissatisfactions and influence their working conditions. The provision of such mechanism reduces the probability that an individual will voluntarily resign his or her position. If unions reduce voluntary turnover by providing voice mechanisms to individuals then these effects may be logically extended to other forms of individual withdrawal from work such as absenteeism. However, unionized firms experience higher absenteeism rates. Therefore, in this sense unions hurt organizational culture. For example, increased sick-leave benefits negotiated during collective bargaining are associated with higher rates of absenteeism. Another ways in which a union can hurt an organizational culture is by causing strain and stress. While not widely researched, there are conceptual reasons to suggest that unions and the practice of industrial relations have consequences in terms of individual stress and strain. First unions negotiate contract provisions that directly affect working conditions. Management may react by implementing more formal policies and standardized job descriptions. The result of such increased formalization may be experienced as a reduction in role ambiguity and increase in role conflict, which are two components of roles stress. The consequences of worker participation in union activities also have an impact on organization performance and various behavioral outputs. Unions provide discontented workers with a participatory forum and a collective voice at the workplace by means of which they may articulate their feelings rather than exiting temporarily through absenteeism or permanently through turnover. Unions encourage member participation making employees feel valuable to the organization. Union organizations have mechanisms such as a written constitution and bylaws that ensure an opportunity for members to participate in the governance of the organization, hold office, attend meetings, vote in elections, or express dissatisfaction with the leadership. Unions help improve an organization’s culture by maintaining some balance between employer and employee’s rights and responsibilities. Although employers and employees share some common interest, each group is motivated by self-interest. The inherent conflict of interest between employers and employees inevitably creates conflict within any employment relationship, which must be managed effectively. Unions rather than an individual are more effective in managing this conflict of interest and creating an enjoyable working environment. The presence of the union formalizes the employee representation activities because employees may file a grievance if they believe the company has violated the terms of the negotiated agreement. If the company employs an accommodation and labor management cooperation strategy, unions can help by cooperating with management rather than the parties having an adversarial relationship. Management and the unions can actively work together to create an organizational climate and a way of operating that will allow employees to participate directly in decisions in their work areas as members of task teams and as members of problem-solving groups. Unions can contribute to companies’ strategic planning and implementation activities which directly affect the organization’s culture. For example, a union can provide input from a clearly defined group of employees, as well as transfer information about corporate plans and direction to those represented employees. The union leaders can help the rank-and-file employees better understand the business plan and lend credibility to the plan. According to our textbook, The Labor Relations Process, â€Å"Unions can help improve an organization’s culture by reducing the employees feeling of alienation which have resulted from the extensive use of machinery in manufacturing operations. Employees might feel alienated because they have lost contact with their own labor when the product they created were taken away from them, thereby reducing their spirit and status or when they became estranged from fellow employees when their work made them too tired and competitive that they were incapable of having authentic relationships. Unions can and do address a possible aspect of employee alienation, namely the employees’ desire to speak their minds without fear of management reprisal. For example, a union typically indicates to its potential members that the employee’s rights to voice their opinions regarding a managerial action are protected by negotiated grievance procedures and disciplinary polices. In conclusion, Unions play a crucial role in improving an organization’s culture. Therefore the union’s members understanding of organizational culture as well as management recognition of the union as a key player in improving organizational culture is imperative. The above examples indicate that failure to achieve organizational change when necessary can be accredited to the lack of management’s understanding about the important role culture plays for an organization. The most important point of this is that such as an organizational culture is made of members that might be union’s members in a unionized firm, and their approval, understanding, and acceptance of any change in their inherent or traditional culture is essential for an organization to operate effectively. Although, the majority of examples and research suggests that unions have more positive impacts in improving an organization’s culture, they can also hurt it if they don’t develop the skills needed for mutual union-management cooperation such as understanding the business and the problem-solving process. They can hurt the organization’s culture if they don’t maintain contact with the membership to better represent members’ interests. Also, if management doesn’t take steps to reorient its view from seeing unions and labor agreements as constrains to recognizing a more cooperative union-management relationship and provides the union with a secure position as the legitimate, permanent representative of the bargaining unit employees. Bibliography Ashby Franklin C. Revitalize Your Corporate Culture: Powerful Ways to Transform your Company. Golf Professional Publishing. Burlington: MA, 1999. Ashkanasy M. Neal, Wilderon Celeste, and Peterson Mark. Handbook of Organizational Culture and Climate. London: New Delhi, 2004. Clark F. Paul. Building More Effective Unions. Cornell University Press. New York: Ithaca, 2000. Julian Barling, Fullagar Clive, and Kelloway Kevin. The Union Its Members: A Psychological Approach. Oxford University Press. New York: Oxford, 1992. Holley William, Jennings Kenneth, and Wolters Rogers. The Labor Relations Process. South-Western. Ohio: Mason, 2005.