Payment for Ecological Services Lijiang, China Essay

Payment for Ecological Services Lijiang, China - Essay Example The major upper hand with the PES is hinged on its ability to offer short-term benefits that encourages conservation behavior. This prompts and facilitates collaborative participation of the residents in the management of the ecosystem and not being its worst enemy. In the region of Lijiang China, fundamental changes have been effected that include banishment on the inspection of fishing, poaching, hunting and a reduced potential threat upon the well being of the ecosystem. Pagiola, S. & Platais, G. (2003). To enhance sustainable Ecological and Environmental services, the PES scheme in Lijiang China has put more emphasis on comprehending the interlocks between human activities; mainly farming around the Lashihai Lake and the management of the biodiversity in terms of migratory bird's population and the preservation or improvement of water quality for landscape use in Lijiang old town. Rosales, M., & Ruis, J. P. (2004). Since Agriculture is the main activity dependent upon by inhabitants who live around Lashishi Nature reserve. Agriculture and livestock therefore constitutes for more than 70% of the entire economic system around this region. This has also been viewed as a major detriment that has greatly hampered and deteriorated the water flows into the lake. Rosales, M., & Ruis, J. P. (2004). ... (2003). Intercropping A mixed system of crops and fruits is already practiced in some areas around the Lashihai Nature Reserve, and thus can be further encouraged. To increase farmers' profits, one could also encourage the introduction of livestock husbandry, which should reduce the dependence on chemical fertilizers. Rosales, M., & Ruis, J. P. (2004). Furthermore, in the last scenario, fodder crops intercropped under fruits may help reduce cost of feedstuff used, thus further increasing the attractiveness of this development scenario for individual farmers. One limitation of the model is that it assumes stable prices for the crops, even though, as shown in the figure below, there are some variations. Furthermore, in near the future prices of grain will slightly increase due to the limited cultivated land. Pagiola, S. & Platais, G. (2003). Changing farming Techniques around the lake The chief reason of changing the agricultural practices of farmers around the lake, however, is not to increase their profits, but rather to decrease the impacts that their activities have on the water quality of the lake - and, in turn, on the tourist city of Lijiang. It is thus obligatory to comprehend the stalemate in terms of agricultural production, application of chemical inputs, and water quality in the lake. Pagiola, S. & Platais, G. (2003). Evaluating of the current production data for the region, it appears that current agricultural sector in the Lashihai Nature Reserve is operating underneath competent levels. Pagiola, S. & Platais, G. (2003). Above all, the production of crops are low, even compared to the run of the mill for China, which compares aggregate production per hectare in the Lashihai Nature Reserve to the average for China for selected crops. The

Botton Classical Argument Essay Example for Free

Botton Classical Argument Essay Humorists are people who are skillful in using humor for writing, talking, or acting. Their works bring laughter and elation to people. In Botton’s book, Status Anxiety, he believes that humorists not only entertain audience, but also convey important messages that cannot be said directly. Thus, he argues that humorists play a vital role in the society. In most cases, Botton’s claim is justified in that since the early nineteenth century, humorists express their thoughts about the society through humor. Some of these humorists do play important roles in the society by revealing crisis or events happening during that time period to bring awareness from the society. Humorists, such as cartoonists and satirical writers, use their own methods to tell about issues happening in the society while putting humor into their work. One of the famous political cartoonists in the nineteen-century, Thomas Nast, draws political cartoons about the corrupted government and notorious business leaders during his time period. Some of his famous works, such as the drawings of Boss Tweed and Tammy Hall, bring insight to the American people, especially the middle class, of how weak the central government is. As Nast works on these cartoons, he put humor into the work with captions or quotes that sarcastically explain what the drawings are for. As an advocate of abolishment of slavery and anti racial segregation, he uses political cartoons to freely express his views and manages to send important messages to the people. Thus, humorists play an important role in the society to let people aware of their surroundings. Some people use humor to express their feelings about what they thought of themselves, other people, or the society. In poetry slam, some people use humor and irony that have messages that they want the audience to know. One of the participants, Katie Makkai presents her poem, Pretty, which has deep meaning behind it. She does brings laughter from the crowd as she begins her poetry about her childhood and brings out a naà ¯ve persona. As the poem goes on, she slowly implies to the audience that nobody can be call â€Å"pretty†, by reasoning that everyone has flaws since he or she is born. She uses herself as one of the example and tells that one can be â€Å"pretty intelligent, pretty creative† , but not â€Å"pretty†. Thus, Makkau is able to get audience attention through her humorous beginning of the poem and also bring some important life messages to her audience. On the other hand, some humorists might not be implying any important messages to their audiences, but simply just doing their jobs by making people laugh. Mr. Bean can be an actor who act in funny movies or series that bring joy to the viewers. Cartoon or real life version, in most of his movies, he does many unique things that brings laughter’s from the people. One can say that there are not important messages that he is trying to show to the audience through his acting. Though, still audience can learn from his actions and careless mistakes that he makes in the movies, which are the main key of bringing humor, and understand that people can make silly mistakes. Humorists are able to show their true feelings about society without any restraints and have the advantages that their works can be taken seriously or lightly. Thus, they can simply tell anything without hurting anyone’s feeling. As they leave important messages by presenting their views through humorous and comical works, they plays an vital role in the society.

Nestle: A Global Multinational company

Nestle: A Global Multinational company Brief of company: Nestlà © with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlà © and is today the worlds leading nutrition, health and wellness company. Its sales for 2009 were $ 112.3 billion, with a net profit of $ 11.1 billion. They employ around 276,050 people and have factories or operations in almost every country in the world. Reasons for selecting the company: Nestlà © can trace back its origins to 1867, from selling milk-based baby foods and condensed milk as its primary products to a market leader in todays Food Beverage Industry with more than 6000 brands under its belt ranging from coffee and candy to hotdogs and pasta. Instead of just reaping the profits from the market, Nestlà © has given back to the community by adopting social responsibilities, showing above the bar ethical behaviour and in many cases raising the standards in the industry. Its founding ethos reflects the basic ideas of fairness, honesty, and a general concern for people. Main strategic issues facing the company: Nestlà © has been facing Nestlà © boycott since 1977 due to its promotions of the use of artificial infant foods. Growing resistance of consumers against the use of genetically engineered foods in Nestlà ©s products. Increasing competition. Increasing awareness in the consumers with the demand of being socially and ethically responsible increasing day by day. Increasing control and regulations in the policies of the governments worldwide. Companys contribution to the National Economy: Switzerlands GDP for the year 2009 was estimated at $522.4 billion with GDP growth rate of 2.8% (2010 estimate). Out of which Merchandise exports for 2009 were of $173 billion. *Companys contribution to the regional economy: Nestlà © employs around 280,000 people all over the world and have factories or operations in almost every country in the world. Nestlà ©s gross revenue for the year 2009 was $ 112.3 billion and RD investment was $ 2.11 billion. *Recent strategic dilemma: Environmental impact of palm oil and the role of multi-nationals such as Nestlà © in this. Recent strategic choice: In March 2010, Nestlà © purchased Krafts North American frozen pizza business for $3.7 billion. Nestlà © has been heavily investing in Africa. Source of Information on Company: http://www.nestle.com (334 words) Executive Summary This assignment analyzes Nestlà ©s current situation and strategies in context of Global Food Beverage Industry and then recommends the key strategies Nestlà © should use to be more successful and retain its status as the global market leader in future. To analyze the FB Industry on a higher level and examine Nestlà ©s external environment, the following business models are used in this assignment: Industry Life Cycle, Key Success Factors and Porters Five Forces. And to analyze Nestlà ©s current status and its internal environment the business models used are: SWOT analysis, Strategic Factor Analysis, TOWS Matrix. After analyzing the information based on the above mentioned models, Nestlà © is currently facing issues like product recalls, stagnant growth, high logistical costs, negative publicity and false allegations which are damaging its image and goodwill in the market. To combat some of these issues Nestlà © has introduced innovative and healthier food products to cater the rising number of health conscious consumers, started focusing on the rising middle class consumers in developing and emerging economies, which has helped Nestlà © to increase their growth again post the 2009 Financial Crisis. For further improvement in the market share and company image, key strategies recommended to Nestlà © are Expansion strategy through strategically acquiring and merging with its competitors and investing in production facilities in developing economies and Growth through Innovation in health nutrition food segment. One area that Nestlà © has to care of immediately is improvement in its Public Relations management to create a high level of loyalty and trust in its customers by building and reinforcing the notion that Nestlà © still follows its founding ethos of fairness, honesty, and a general concern for people. (277 words) Industry Life Cycle Introduction Growth Maturity Decline Time I ND U S T R Y SALES The Global Food, Beverage and Tobacco Industrys growth has slowed down in recent years. But all this is set to change due to the recent technological advancements, rapid globalisation and opening up of the many restricted markets worldwide such as India, China, African nations, etc. With the technological advancements in food processing, handling and storing capacity and the rapid emergence of organized retailing in Asia, Africa, and other third world countries, along with fast changing demographics and habits has changed consumption the patterns and is fuelling the next growth trajectory for the global food, beverage and tobacco industry. The Global Food, Beverage and Tobacco Industry is in the High Growth stage of the growth phase as the increase in sales has slowed down in recent years. The global food, beverage tobacco industry generated total revenues of $6,319.2 billion in 2009, growing at a compound annual growth rate (CAGR) of 3.4% for the period spanning 2005-2009. Food sales generated total revenues of $4,235.4 billion, equivalent to 67.1% of the industrys overall value and sale of beverages generated revenues of $1,581.7 billion in 2009, equating to 25% of the industrys aggregate revenues. The industry is forecasted to grow at CAGR of 3.8% for the five year period 2009-2014. Nestlà © recorded revenues of $99 billion in year ending December 2009, showing decrease of 2.1% compared to fiscal 2008. In 2009, Nestlà © renovated 7,252 products for nutrition or health reasons, as health awareness among consumers is rapidly increasing and it wants capitalize on the health conscious trend. Nestlà © has been active in Developing Emerging (DE) economies through its subsidiaries in Asia Pacific, Africa, the Middle East, Turkey and Latin America. Nestlà ©s sales in emerging countries accounted for almost 32.5% of total revenue and reached $32.32 billion in 2009. According to IMF, the advanced economies are set to grow at 2.1% and 2.4%, respectively, in 2010 and 2011, while the DE economies are forecasted to grow at 6% and 6.3% in 2010 and 2011, respectively. Therefore in the future, Nestlà ©s growth will be driven by high-growth DE economies. Key Factors for Success Key Success Factors Weight Rating Weighted Scorecard Rating Weighted Scorecard Rating Weighted Scorecard Branding 0.20 5.00 1.00 4.00 0.80 4.50 0.90 Diversification 0.15 4.50 0.67 4.00 0.60 4.50 0.67 Product Quality 0.15 4.00 0.60 4.00 0.60 4.00 0.60 Pricing 0.15 3.50 0.52 3.50 0.52 4.00 0.60 Distribution Network 0.10 5.00 0.50 3.50 0.35 5.00 0.50 Packaging 0.10 4.00 0.40 3.50 0.35 4.50 0.45 R D 0.10 5.00 0.50 3.00 0.30 4.50 0.45 Market Dominance 0.05 5.00 0.25 4.50 0.22 4.00 0.20 Total 1.00 4.44 3.74 4.37 Key Factors for Success in the Food and Beverage Industry: Branding in FB industry is of utmost importance as people do not prefer to buy products that they are not familiar with; also in this industry brand image is everything as it can attract consumers to a companys new products if it is already reputable in the market. Diversification in FB industry are almost always related as companies prefer to have a healthy portfolio of products while still maintaining their core competencies and using them in their related products; as by having a large range of products a company will be more competitive and would not have to rely on a single product. Product quality is very important in FB industry, as bad quality products can will lead to consumer boycott of the companys products, health issues in consumers and lawsuits against the company. While quality of the products also have to justify their prices, such as normal milk chocolates (Nestlà ©, Cadbury, etc.) cannot be priced high while specialty chocolates (Lindt, Godiva, etc.) are high priced. A strong distribution network is a must in FB industry as it gives the companies low costs operations, fast delivery, and optimal shelf presence in retail stores. RD is vital for gaining market share for the companies as development of better tasting, more nutritional and new foods beverages is the fastest way of capitalizing on the fast changing trends of the consumers (like current healthy organic food trend). Two of the many competitors that Nestlà © has, I have chosen Kraft Foods and Unilever for the comparison of KFS. After analyzing the KFS it is clear that Nestlà ©s response to the current and expected key success factors is above the industry average, with Unilever quite close behind and Kraft Foods just managing the industry average. So the analysis of KFS also reinforces Nestlà ©s position as the largest FB Company in the world. Porters Five Forces Model: Potential Entrants: Product Differentiation Switching Costs Distribution Channels Cost Disadvantages Suppliers: Financially weak Large no. of suppliers Buyers can do Backward Integration Substitutes: Private label products Niche products Cheaper alternatives available Buyers: Large Retailers Financially strong Backward Integration Low Profit margin Other Stakeholders: Health Groups Environmental Groups Fair Trade Organizations Rivalry among existing firms: Large number of players Dominance of big players Highly diversified markets Analysis of Porters Five Forces: The Bargaining Power of Suppliers (Low): The bargaining power of suppliers in FB Industry low as the raw materials for this industry includes fruits and vegetables, meat and fish, dairy products and grains, tobacco, cereals and grains, etc which could be purchased in the open markets around the world. And some FB producers have integrated backwards into producing their own raw materials, negating the need for suppliers. Also suppliers tend to be financially quite weak giving market players upper hand. The Bargaining Power of Buyers (High): The bargaining power of suppliers on the other hand is quite high as typical buyers are large retailers such as Wal-Mart, Carrefour, etc. who are financially very strong and usually make large purchases and enter into long term contracts with market players; as the profit margins for the buyers is quite low. So loss of one retailer could significantly impact upon a manufacturers revenue. Buyers are frequently integrating backwards, with many retail chains offering their own branded packaged food goods usually referred to as Private label products. The Threat of Potential New Entrants (Present): The threat of new entrants is high for small players who only serve few products and few markets (regional or national players) but is low for highly diversified big market players such as Nestlà ©, Unilever, etc. who operate globally. Since its a highly fragmented market small-scale entrance by occupying a niche in the industry is possible and high these days. But new entrants have to bear switching costs (which can be quite high) as its very hard to convince consumers to try new brands/products. Also big players can restrict the access to distribution channels for new players through their contacts and power in the market. The Threat of Substitutes (High): The substitutes are often cheaper and just as popular with consumers in FB Industry as most of the products in this industry are in a way a substitute of some other products, like Tea for Coffee, Coke for Pepsi, NutraSweet for Sugar, etc. These days private label products, organic foods; nutritional foods, etc. are also rapidly substituting the packaged foods. And there are almost no switching costs for end consumers as they just pick any new products instead of their regular ones if they want to experiment. The Extent of Competitive Rivalry (High): The competitive rivalry among the firms is quite high in this industry as the enormous size of the industry creates endless opportunities for the players to compete for. Large number of players, ready availability of substitutes, low entry barriers, low bargaining power of suppliers and fast changing customer tastes intensifies rivalry in the FB Industry. And also slow down of sales in the industry in 2009 will intensify the competition in the market, as everyone would try and gain market share now by take sales away from other competitors. Relative Power of Other Stakeholders (High): SWOT Analysis: Internal Factors Analysis Summary (IFAS): Internal Factors Weight Rating Weighted Score Comments Strengths S1: Finance 0.15 5.00 0.75 Low debt/asset ratio S2: Global Presence 0.10 4.50 0.45 Market Leader S3: Brand 0.10 4.50 0.45 One of USAs most admired S4: RD 0.10 5.00 0.50 Industry leader S5: Diversified Portfolio 0.05 4.50 0.22 More than 6000 brands Weaknesses W1: Quality Control 0.20 3.50 0.70 Increase in product recalls W2: Growth 0.10 3.00 0.30 Growth recovery slow W3: Emerging Markets 0.10 3.20 0.32 Less emphasis W4: Logistics Cost 0.05 2.00 0.10 Quite high W5: Perceived Image 0.05 2.00 0.10 Considered to put profit first Total Score 1.00 3.89 Strengths: Nestlà © apart from being the market leader in FB Industry is also financially very strong with highly diversified portfolio of more than 6000 brands, global presence, and strong RD capabilities; and in the process has developed a very strong brand image which it uses as leverage to generate high sales. As it has global presence it has customized its products according to consumer preferences in the local markets. Nestlà © is also the leading company to invest heavily in RD (annual invest of $ 1.8 billon approx.) as it considers innovation as one of its primary growth drivers. Weaknesses: Due to the sheer size and geographical diversity of Nestlà ©, controlling quality in many of its factories and supply chains is becoming difficult for Nestlà ©; which in turn is resulting in product recalls, loss of goodwill, and effect to the brand image of the company, which can lead to low customer loyalty. Another one aspect where Nestlà © is lagging behind is that it has not been focusing much on emerging markets as majority of its sales are from developed markets. Its logistical costs and inventory management costs are also quite high due to its geographical diversity. Its growth has been has slow after the economic downturn as compared the industry as a whole, which has been on the recovery track since. External Factors Analysis Summary (EFAS): External Factors Weight Rating Weighted Score Comments Opportunities O1: Health food trend 0.15 4.50 0.67 Rise in health consciousness O2: Developing Emerging economies 0.10 3.50 0.35 High growth rate O3: Opening of Eastern Europe 0.05 3.00 0.15 Can expand there O4: Out-of-home consumption 0.10 3.50 0.35 More than 40% in Americas O5: Premiumisation 0.10 3.20 0.32 Growing incomes Threats T1: Rising prices of raw materials 0.10 3.00 0.30 Climate change food shortages T2: Specialized competitors 0.15 3.50 0.52 General Mills in Yogurt Mkt. T3: Increasing Regulations 0.15 4.00 0.60 Spats with FDA T4: Currency Fluctuations 0.05 2.50 0.12 Strong Swiss Franc T5: Negative Publicity 0.05 3.00 0.15 Due to alleged unethical business practices Total Score 1.00 3.53 Opportunities: One of the major opportunities which can be the future growth driver for Nestlà © is healthy and nutritional foods segment, as by 2014 the global organic food market is forecasted grow by 60.7% since 2009 and while the global functional drinks market is forecasted to grow by 32.9% since 2009. Also further penetrating the Asian, African and Eastern European markets by using merger, acquisition and joint venture strategies can also be a major growth driver for Nestlà ©. The growing level of incomes of the middle class around the world is also providing Nestlà © with opportunities for launching its premium products such as Mà ¶venpick, etc. in the developing economies. Threats: Two of the major factors threatening Nestlà © are specialized competitors and increasing regulations by government bodies. As Nestlà © is highly diversified it faces problems when it has to compete with competitors who are highly specialized in one product such General Mills in US Yogurt Market. Also any change or stricter enforcement of regulations by government bodies like FDA, tend to threaten Nestlà © as it would have to change its production process or may even face lawsuits pay fines due to some violations of the regulations, which will also give rise negative publicity about the company. Due to the economic downturn of 2009, currencies fluctuations have been hurting Nestlà © as Swiss Franc has strong against the most of the other currencies. Strategic Factors Analysis Summary: Strategic Factors Weight Rating Weighted Score Duration Comments S H O R T I N T E R M E D I A T E L O N G S1: Finance (S) S3: Brand (S) 0.15 5.00 0.75 X Large amount of cash 0.10 4.50 0.45 X Major global brand W1: Quality Control (W) W3: Emerging Markets (W+O) 0.20 3.50 0.70 X Recent product recalls 0.10 3.20 0.32 X Give more emphasis O1: Health Food Trend (O+S) O5: Premiumisation (O) 0.15 4.50 0.67 X Major growth area 0.10 3.20 0.32 X Increasing incomes T2: Specialized Competitors (T+O) T5: Negative Publicity (T) 0.15 3.50 0.52 X Possibilities of JVs 0.05 3.00 0.15 X Significant impact on customer loyalty Total: 1.00 3.88 Short Term: The FB Industry can see short and explosive bursts of growth, so it is necessary for Nestlà © to always have few strategies ready for short periods or it might not be able to capitalize on important trends or fads. For short term Nestlà © should focus on Premiumisation in developing and emerging economies as the incomes of the middle classes is rising there, which is fuelling their want of premium products now. Since Nestlà © already has lot of products in the premium segment, so all it has to do is to launch them into developing and emerging economies now; which will only take short time period to do and with minimum costs. Intermediate Term: Quality Control, Emerging markets, health food trend and specialized competitors are factors which Nestlà © will have to address in the intermediate time period, as they can adversely its sales if left unchecked. Nestlà © has to bring its quality in to control quickly otherwise it will be at risk of losing its loyal customers and might even face lawsuits. By expanding and capitalizing in emerging markets like India, China, etc. and current health food trend Nestlà © will be able to compete with its competitors and maybe also gain market share in the process. Collaborating with its competitors or buying them out in the segments which require specialized skills will take some time but is a necessary step or in long term they might become a huge threat to it. Long Term: Nestlà ©s long term scenario is quite balanced as it is financially very strong with a brand name that is counted among the top 25 brands in the world, but it also has repair its deteriorating image in customers minds. Being the market leader in the industry and with worldwide renowned brand Nestlà ©s sales revenue is far greater than that of its competitors which gives it high leverage capabilities while operating in the market. It has been coming under attacks from various social groups in recent years, which has been damaging its goodwill among its customers. Nestlà © has to strongly address this issue slowly and carefully so that it is come back to haunt it, and do that it has to invest heavily in very effective and efficient Public Relations management team. TOWS Matrix: Internal Factors (IFAS): External Factors (EFAS): Strengths (S): Finance Global Presence Brand RD Diversified Portfolio Weaknesses (W): Quality Control Growth Emerging Markets Logistics Cost Perceived Image Opportunities (O): Health Food Trend Developing and Emerging Economies Opening up of Eastern Europe Out-of-home consumption Premiumisation SO Strategies: Develop products for health nutrition segment. Find joint venture partners in Eastern Europe. WO Strategies: Expand Nestlà ©s presence in Eastern Europe Asia. Change Nestlà ©s perceived image. Threats (T): Rising prices of raw materials Specialized Competitors Increasing Regulations Currency Fluctuations Negative Publicity ST Strategies: Do backward integration. Either use joint venture acquisition strategies or RD to gain market share. WT Strategies: Invest in PR management to improve the image of Nestlà ©. Emphasize on developing emerging markets to gain market share. SO Strategies (Maxi-Maxi): SO strategies are formed so that the strengths of a company can be used to capitalize on its external opportunities. So by analyzing Nestlà ©s strengths and opportunities available to it I have decided to use two strategies for Nestlà ©s future growth. As the demand of healthy nutritional foods is increasing Nestlà © can use its strong RD capabilities to develop products for this segment. Another strategy that Nestlà © can use is to find partners for joint ventures in Eastern European market as it being relatively new, it might not be aware of how things happen there; so it should first do joint ventures there to study the market first as opposed to moving with full force in the market. ST Strategies (Maxi-Mini): A company applies ST strategies to avoid its external threats using its strengths. As Nestlà © is financially very string it has the capabilities to do backward integration with its suppliers, which will in turn insure Nestlà © of a secure steady supply chain and quality of its raw materials. Another strategy that Nestlà © can also use is that through its financial strength, brand image and global presence it can either acquire or enter into joint ventures with its competitors who are highly specialized; or it can use its strong RD to also develop specialized products for that segment. WO Strategies (Mini-Maxi): WO strategies are aimed to improve a companys internal weaknesses by capitalizing on its external opportunities. Nestlà © can reduce its logistical and inventory management costs by expanding its presence to Eastern Europe and Asia. Another strategy that Nestlà © can use is to change its Perceived image (of putting profit first) by developing and introducing more healthy nutritional products. WT Strategies (Mini-Mini): WT strategies are defensive tactics employed by a company to reduce its weaknesses and avoiding its external threats. As the image of Nestlà © is being tarnished by negative publicity arising out of recent product recalls, compliance issues for violating regulations, etc. it should heavily invest in its PR management; so that such negative publicity could be avoided next time. Nestlà © should put more emphasis on selling in developing and emerging markets to continue steady growth while increasing market share and also for purchasing and producing there to counter the rising prices of raw materials and labor costs. Assessment of Current Company Performance: Efficiency: Nestlà ©s recently been following the strategically expanding through acquisitions and investments. It has been quite successful in expand its line of frozen foods in North America through the acquisition of Kraft Foods frozen pizza line for $ 3.7 billion in cash. Nestlà © also had several other small acquisitions in the first quarter of 2010 which did not have a significant impact on the Groups sales and profit for the period. Nestlà ©s acquisition related costs in the first quarter of 2010 were about $ 13.4 million. Effectiveness: Nestlà © was effective in carrying out its expansion strategy through acquiring frozen pizza line from Kraft Foods as where the company had only a minor presence until now; it is the market leader in frozen food segment in North America. It successfully integrated Kraft Foods pizza business into the Nestlà © Group as well as its 3,620 employees, with their valuable talent and expertise in Nestlà ©. The frozen pizza line showed 14% organic growth in the first quarter of 2010. Sales and profit of Kraft Foods frozen pizza business in the first quarter of 2010 amount respectively to $ 6.11 billion and $ 65.2 million. Return to Investors: Nestlà © paid dividend of $ 5.632 billion in the first quarter of 2010 which showed an increase of 7.8% when compared to the dividend payment of $ 5.223 billion in 2009 for the same period. Increase in dividend shows that Nestlà © is starting to recover from the financial crisis of 2009. The share value of Nestlà © went up by $ 0.91 per share for 2010. Review of Options for Future Direction In order to address its weaknesses and external threats Nestlà © has to critically use its strengths and capitalize on its external opportunities by using some of the strategies mentioned in the TOWS matrix earlier. One of the strategies that Nestlà © can use is expansion strategy through strategically acquiring and merging with its competitors and investing in production facilities in developing economies. It should acquire or start joint ventures with firms in developing markets like India, China, Russia, etc. to capitalize on their booming economies and gain market share quickly before other global players enter the markets as it has the financial backing to support such expensive ventures. Also it should start investing in developing markets to develop its own production and distribution facilities so as to eliminate dependency on local players. Another strategy that Nestlà © should undertake is Growth through Innovation in health nutrition food segment. Due to the rising education levels and general awareness around the world consumers are becoming more more health conscious, which is an important opportunity and will be a future growth driver for Nestlà ©. It should use its highly developed RD capabilities to develop more healthy and nutritional foods to cater to this growing group of consumers. Implementation of New Strategies Structure: Nestlà © has a decentralized organizational structure which has been very beneficial to it as far flung divisions could take decisions in real time to exploit the opportunities present to them; but due the huge technological advancements in the past few years this autonomy has led to conflicting practices within the company; making it a nightmare to coordinate activities between divisions in different geographical zones. It has to centralize its operations to gain a tighter control over its far flung divisions and businesses, so that Nestlà © can (with a unified centralized system) leverage its products in real time on a worldwide scale to generate higher sales. Systems: Nestlà © has its production and logistical systems under control to meet any unexpected growth surge in a short period of time and to fuel growth for expanding in developing markets. But Nestlà © has to take care of its supply chains as they can virtually leave Nestlà © hanging in the air if any change in natural political environment takes place with the possibility of disruption in supply of raw materials or a drop in the Why do Multinational Companies Exist? Why do Multinational Companies Exist? According to Needle (2010), Multinational enterprises are those enterprises which carry its production activities in more than one country. These companies make sure of the supply of raw material to the other country they are operating in. As per Buckley and Casson (2009) many of the multinational operate in different country because of many reasons such as low labour costs, serving a huge market, cutting of their taxes and production costs, innovation in technology and exploitation of resources. According to Dickens (2011), today we are living in borderless world as there are no boundaries that exist between the countries or nations. Globalisation is the new trend changing the political and cultural order of the world (Buckley and Ghauri,2004). Every operation that has been carried out by companies goes around the world. Innovation is growing very fast and so do competitiveness. Globalisation can be define as the increase in the frequency and duration of linkages between countries leading to similarities in activities of individuals, practices of companies, and policies of governments (Czinkota 2005). From the statement we can say that companies go global because of many reasons as now the countries are linking to each other to share the information and wealth. As said by Rugman and Verbeke (2005), Firms become multinational because they want to grow, expand and diversify their operations. Operating in their home country wont satisfy them so they go global. Using the resources of their home country make it obsolete or bound them in a limit to not to go further. Then firm decides to go global by making investment on their further growth. As argued by Madura (2008) following are the theories which a firm follows when it globalises such as: Theory of Comparative Advantage The Imperfect Markets Theory The Product Cycle Theory As explained by Madura (2008), Comparative advantage theory says that when countries specializes or have expertise knowledge in one field than they dont waste their resources or energy on research of other field, they share or trade with other countries to share their expertise field. They take advantage of their expertise knowledge and become a head in comparison with others. Labour force is skilled and lower in cost in India and China as compared to western countries. They can be transported or hired for the operations for other companies. Companies such as Intel, IBM, Wipro operate in different countries because to utilise their efficient resources. These companies are operating in India, having their call centres outsource sharing the expertise knowledge in the field of Information Technology as India produces a large amount of IT experts. Imperfect market theory says that if the markets of a country stop trading with other countries than there will be no international trade. As per Dewey (1969), if the markets of the countries were perfect then there would be an easy transfer of resources from one country to another. Factors of production like labour, raw material, machines and capital can be transferred wherever they are demanded. This temperament of deal between the countries creates a similarity in costs and removes the relative cost of advantage, global trade and investment. In todays world there are situation when imperfect market conditions arises, where transfer of labour and other factors of production is restricted at some level. For example, MNEs such as Gap and Nike take advantage of the resources related countries. Imperfect market offers these companies to exploit their market and cross the trade barriers of import and export. According to Madura (2008), in Product Cycle theory, firms establish first in their home country by utilising all the resources available in the market. In home market they have an advantage over competitors. After operating in home market firm feels to expand their operations by entering into foreign market and producing their products overseas, reducing their transportation cost and other cost of production. There are existing competitors in the global market and to compete with them they introduces new technology and products in the market. For example, Dell, Lenovo, Toshiba are the companies who spent lot of their resources in their research and development for the latest technology. As argued by Kapoor and Grub (1973), firms motivate themselves to become multinational enterprises because of the foreign direct investment that helps in crossing the trade barriers to other countries. They also explore different cultures and management structure followed in different countries. Firms become multinationals in order to reduce the risk of foreign trade and become politically and economically well established. By going global they create a good relationship between the nations and create a name and goodwill to the firm. For example, many of the American companies are going global as they now operating their activities in the growing economy of different countries such as Brazil, China, India, Russia etc. Many of the emerging market companies such as HTC, Samsung, Nokia etc. are also spending on their research and development and sharing the information on technology sector. According to Markusen (1995), as he explains the Dunnings OLI framework that there are three advantages in which a company can have direct investment. Firstly, Ownership advantage is when a company has trademarks and copyrights of producing a product line and no other company can duplicate their product. Secondly, Location advantage is there when a firm creates his monopoly in a particular region serving a large amount of society. It is done as the foreign market offers the low cost of production to firms which make it profitable for the firm to serve that region. Thirdly, Internationalisation advantage says that if there is a market to cater than instead of going out there and start a new production unit, its better to license and sell your technology to a company and they will produce units for you. As stated by Madura (2008), there are some ways by which firms become multinational enterprises. International Trade Licensing Franchising Joint Ventures Acquisitions of existing operations Establishing new foreign subsidiaries According to Hill (1994), International trade means exporting and importing of goods and services between different nations and different companies. If a company start facing losses that it can reduce or stop exporting or importing from different countries as there is no huge investment involved in it. For example, many of the U.S. firms such as Microsoft, IBM, General Electric generates there huge amount of revenue from import export. As argued by Needle (2010), Licensing means that a firm uses several modes such as copyrights, trademarks, patents etc. to register their process of operations or the technology they use. They can transfer or share their technology with others according to their wish with low capital involved in it. For example, in India all the parts of telephone communications are manufacture by ATT and Verizon Communications as they have a licensed agreement. All the drugs that are produced and exported to Hungary and other countries are made by Eli Lilly Company. It has been argued (Spinelli et al. 2004) that Franchising means when a company authorizes its residents of the same country or other country to open an outlet using the brand of the company. Its market policies, product line and the franchisee have to follow the protocol of the parent company. In return to this the franchisee has to pay a royalty fee to the company periodically. For example, McDonald, Pizza Hut, Subway sandwiches have many outlets in many countries that are operated by the local residents of the respective countries. As per Yan and Luo (2007), in Joint Ventures two firms come together to achieve their common goal in the competitive market. In ventures risk sharing ratio is equally divided for the defined project and there should be a mutually understanding between them. These enterprises are also politically acceptable in different nations. For example, Nestle has a wide distribution of its home products throughout the world. So there has been a joint venture between General Mills Inc. and Nestle to distribute the cereals produced by the General Mills by using the distribution channel of the Nestle. It has been argued (Reed et al. 2007) that acquisition of existing operations means that the company acquires the existing competitors in the local market or in the foreign market. A company takes over another organisation as they incur heavy losses and cannot operate in the competitive market and also to vertically or horizontally integrate. A company explores the resources of another company and take advantage of the already setup done by that company. For example, Procter and Gamble acquired a bleach company situated in Panama. According to Rugman and Verbeke (2005), another way of entering in global world is by establishing new subsidiaries. The large organisations create or distribute its departments into different companies and are wholly or partially controlled by the parent company. The main organisations are called the parent company and the other is known as holding companies. If the company is totally owned by the parent company that their stock is also owned by the parent company. There is always a protection of technology as the information is not leaked out. At the same time it also involves high costs and risks in the foreign market. For example, a truck company called Overnite Transportation is a totally purchased subsidiary of Union Pacific Corporation. Conclusion At last it can be said that, the role of MNC in developing itself and the nations are very important. It in one way helps to build and economy by various advantages. At the same time it can have different repercussions if not properly strategized. The above description gives all the major points in making of an MNC. Also the essay describes the various parameters needed in making of an MNC.

What Causes Epilepsy? :: Biology Essays Research Papers

What Causes Epilepsy? From GABA to Zinc Epilepsy is "a diverse collection of disorders" (1). In the United States, there are close to one million people with epilepsy-- about 1 in 200 people around the world have epilepsy(3). This is a review of the emerging insights into the mechanisms underlying the most common form of epilepsy, complex partial epilepsy(1). Terminology and Classification of Epileptic Seizures The term seizure refers to a transient alteration of behavior due to abnormal synchronized and repetitive bursts of firing of neurons in the central nervous system. Epilepsy is syndrome of episodic brain dysfunction characterized by recurrent unpredictable spontaneous seizures. Partial seizures begin in a localized brain region, whereas generalized seizures show widespread involvement of both hemispheres. Examples of generalized seizures are absences (petit mal), myoclonic, or tonic-clonic (grand mal) seizures. A complex partial seizure is associated with impairment of consciousness while a simple partial seizure is not. Most complex partial seizures originate from the temporal lobe and are also called temporal lobe seizures. Epileptics frequently have more than one type of seizure. When simple partial seizure precedes a complex partial seizure, it is referred to as an aura. More recent classifications of epileptic syndromes incorporate such features as etiology, age of onset, and th e different combinations of seizures that an epileptic has. Other commonly used terms include ictal (of seizure itself) and interictal (between seizures). Convulsion implies ictal behavior with vigorous motor activities. Status epilepticus denotes a very prolonged seizure or series of seizures occurring so frequently that full recovery of brain function does not occur interictally (1). Complex partial seizures constitute a major percentage of epilepsies and as a result of impaired consciousness are rather disabling. They are often medically intractable in that the administration of medication will not control the seizures. Most cases of complex partial epilepsy appear to stem from an abnormality in the temporal lobe, since partial resection of the temporal lobe, including the mesial structures, hippocampus, and amygdala, virtually eliminates seizures in more than 80% of selected patients. Examination of tissues of the surgical specimens and autopsy studies of patients with chronic temporal lobe epilepsy most often reveal sclerosis of the hippocampus, termed Ammons horn sclerosis, which is characterized by a marked loss of the principal neurons of hippocampus (1). Jackson and his Early Theory on Epilepsy and Brain Organization In the 1800s, it was noted by Jackson that epileptic seizures begin in isolated parts of the body such as the thumb and from there spread to neighboring regions perhaps the arm and then to the rest of the body.

Compare and Contrast Huckleberry Finn and to Kill a Mockingbird

9/12/2012 American Studies II Comparing and Contrasting: To Kill a Mockingbird and Huckleberry Finn In the books, The Adventures Huckleberry Finn and To Kill a Mockingbird, the authors demonstrate several themes: the coexistence of good and evil, the importance of moral education, the existence of social inequality, racism and slavery, intellectual and moral education, and the hypocrisy of â€Å"civilized† society.The common themes throughout the two books depict; that although the settings are nearly a century apart, society has not changed as drastically as believed. Racism, a main theme throughout both books reveals itself in many ways. The Adventures of Huckleberry Finn takes place during the 1830’s – 1840’s, in Missouri, a slave state. During this time period, slavery was a controversial issue; and amongst the main causes for the civil war. In Adventures of Huckleberry Finn, Huck learns to bond with a slave, Jim. Throughout the course of the novel, Ji m and Huck become close friends and he realizes that he cares for him.Huck disregards most common opinions throughout society, he is associated with this slave who is supposedly ‘less than human. ’ Jim, the slave, is an intellectual human being despite the fact that he is treated as a lesser life form. Whereas, in to Kill a Mockingbird, racism is illustrated in depth through a trial in which a negro man is accused of a rape, to which he is thoroughly proved his innocence. Despite the evidence agreeing with the defendant, the racist jury simply convicts the defendant â€Å"guilty†. To Kill a Mockingbird is set in the 1930’s, during the Great Depression in Alabama.A former slave state, and a southern state, the town of Maycomb was swarmed with racist and prejudice people. â€Å"The one place where a man ought to get a square deal is in a courtroom, be he any color of the rainbow, but people have a way of carrying their resentments right into a jury box. As you grow older, you'll see white men cheat black men every day of your life, but let me tell you something and don't you forget it – whenever a white man does that to a black man, no matter who he is, how rich he is, or how fine a family he comes from, that white man is trash. (Harper Lee, To Kill a Mockingbird p295) We are all born innocent, and then we are exposed to the evils of the world. Progressively, we begin to conform to fit society’s measures. We do good things, and we do bad things. We are only human. Throughout these books, exists a coexistence of good and evil. People may have good intentions for some things, and feel quite differently in others. In To Kill a Mockingbird, the book displays the change Jem and Scout Finch make from their childhood innocence. From the beginning of the novel, the characters develop in many ways; mentally and physically.They have been raised by the ideal moral backbone, their father, Atticus. Despite the fact, they are not alwa ys prepared to see the world’s evils right before their eyes. During the course of the trial, Jem and Scout watch closely anticipating the result and hoping for the best. Yet, when they see the truth and the racism of the town before their eyes, they don’t know how to handle it. Jem has lost faith in humanity, and feels hopeless. Yet, Scout manages to see that people can be both good and bad. In humanity, good and evil coexists. â€Å"When they finally saw him, why he hadn’t done any of those things . . Atticus, he was real nice. . . .† His hands were under my chin, pulling up the cover, tucking it around me. â€Å"Most people are, Scout, when you finally see them. † He turned out the light and went into Jem’s room. He would be there all night, and he would be there when Jem waked up in the morning. † (Lee, To Kill a Mockingbird, p284) As the story progresses, Scout starts to see things in a new way. Her perspective starts to change an d she is able to see people for who they are and who they aren’t. Scout sees human evil, but she also realizes that people aren’t perfect and make mistakes.Scout sees that there is good in people, and that there is also bad in people. Despite the fact that she is a lot younger, she grasps the situation better than her older brother who seems to fall apart at the concept of human evil. The Mockingbird had become something symbolic in the story. The mockingbird represents innocence and portrays itself through several different characters in the story; such as Scout Finch or Boo Radley. Despite their innocence however, they can be injured with their contact with evil. In the story, it’s explained how Boo Radley’s innocence is tainted because of his abusive father.Thus the extended metaphor or symbolism would explain that killing a mockingbird is tainting innocence. When Scout inquires her, Miss Maudie explains, â€Å"Mockingbirds don’t do one thing b ut . . . sing their hearts out for us. That’s why it’s a sin to kill a mockingbird. † This also links the connection of Scout and Jem both having the last name finch, which is another name for a particularly small (and also harmless) bird. In Huckleberry Finn, Huck comes from the lower levels of white society, having a father who is a drunk who disappears constantly.Widow Douglas adopts him and attempts to reform him, although she has difficulties. Huck does not accept the ways of society, and often tells Widow that he would rather go live in hell for a change of scenery. The Widow tries to teach him how to read and tries to make him religious. Although the Widow’s efforts do finally teach Huck how to read, he is still skeptical of the world around him. He does not agree with rules, and feels like he should create his own. Life is an adventure filled with new things and new ways to do them. To the world, Huck is but an infant crawling and learning how to t ake his first own steps.Huck realizes his friendship with Jim has made him content, and that the outside world is harsh. Every time Huck and Jim find themselves on land, they see the world for what it is and it’s cons and tricks. They see the lies that people weave, the hatred, the conflicts. When Huck and Jim are together on the raft, they feel like they escape from the world and its problems. Everything seems to float away and they can enjoy the simple pleasures. They choose to isolate themselves and feel as if they are living an idealistic dream or are a part of a Utopian society.They do not need much to be satisfied, just a few basic needs and to be away from the hypocritical society. â€Å"I hadn’t had a bite to eat since yesterday, so Jim he got out some corn-dodgers and buttermilk, and pork and cabbage and greens—there ain’t nothing in the world so good when it’s cooked right—and whilst I eat my supper we talked and had a good time. . . .We said there warn’t no home like a raft, after all. Other places do seem so cramped up and smothery, but a raft don’t. You feel mighty free and easy and comfortable on a raft. †(Huckleberry Finn, page 119)Everything is a learning experience for Huck, who is still youthful and very open minded. He comes to see how people in society interact and what their certain views on things are. He learns of how things can contradict each other or become hypocritical. Huck witnesses lots of lying and schemes, many of them by the duke and the dauphin. However, he also pulls a few white lies of his own. Trying to save Jim and himself, he cons a few people. It’s then that he realizes that telling a lie, dependent upon the situation can actually be a good thing.This demonstrates the thin line between the right and wrong of things and how society uses them. â€Å"But I reckon I got to light out for the territory ahead of the rest, because Aunt Sally she’s goin g to adopt me and sivilize me, and I can’t stand it. I been there before. † (Huckleberry Finn, page 190) Huck realizes that although he has come to like Aunt Sally, she is a part of society that he chooses to be left out of. He feels comfort in being a recluse, and does not want to integrate himself in the society he disagrees with. Religion, and the supposedly â€Å"correct morals† that he would be forced upon don’t interest him.He also feels that he could get a better education from his own experience than from what he is being taught and forced. Huck feels ready to accept the challenge of his own life and take his own responsibility. So when Aunt Sally wishes to adopt him, he chooses to hit the road and set off on his own adventures. Throughout the novels, both Huck and Scout have this sense of independence and free thinking to them. Despite their obvious differences in upbringing, they share at the root the same thinking. They believe in independence a nd seeing for themselves what life is like.They do not want to believe in what â€Å"all adults† think is correct and force them to believe. They are both young and innocent and want to determine what is right and wrong in the world by themselves. Scout, is a little more guided with the help of Atticus; however she still makes many decisions by herself on her views of people. She is able to truly open her eyes and see what the world is made of. In conclusion, though Huck takes different approaches on his life and sets off on his own completely new adventures, he isn’t that different from Scout. They both have their own opinions which differ drastically from the rest of the society.

Stacys Pitaman Chips Cinnamon and Sugar

Stacys Pitaman Chips Cinnamon and Sugar Introduction The free market economic model dominates the world economy. With the exception of china, Cuba and North Korea, the rest of the world’s economies are dominated by free market principles where forces of demand and supply dictate market trends.Advertising We will write a custom term paper sample on Stacy’s Pitaman Chips Cinnamon and Sugar specifically for you for only $16.05 $11/page Learn More In the theory of the firm, business operate in conditions dictated by the two forces but that operate on larger context of microeconomic and macroeconomic environments. The microenvironment represents the market conditions and/or elements that a firm has control over and which it can easily be manipulated to suit its marketing operations. They are the factors that determine the firm’s provision of goods or services. The factors may include intermediaries, the competing firms, and conditions within the firm itself. On the other hand the m acro environment refers to the expanded business space that is characterized by forces beyond the individual firm’s control.. They include demographic factors that largely involve characteristics and trends of the population, economy, political climate, cultural characteristics, technology, and natural forces. In the free market environment, firms are in business to make profit. One of the most important concepts in capitalism is marketing. Due to competition, firms try to entice customers to buy their products to make extra money. Competition is brought due to the presence of multiple players in different industries and sectors in the economy. Food and snack industry is one of the biggest scores in the above economic order that employs millions of people in the US and worldwide. Stacys Pita Chip Company, a manufacturer of healthy, baked, natural snack foods, and a leading player in the snack and food market will form the basis of analysis in this paper. Both the micro and ma cro business environments in which it operates will be analyzed as well as the marketing mix that it has adopted to sell its products. The company has wide variety of products on offer to its customers. This paper is supposed to specifically analyze the marketing approach of cinnamon and sugar chips. It’s important to note that the company has no explicit marketing approach that explicitly focuses on the product. The marketing strategy that it has adopted focuses all the products under the Pitaman brand name. The paper will therefore be focusing on cinnamon in reference to the overall strategy adopted by Pitaman. Macro and Micro business environment Microenvironment The microenvironments in which Stacy’s operate as include the company itself, marketing techniques, intermediaries, suppliers, and competitors.Advertising Looking for term paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The cur rent environment of the company refers to the departments and management of the company. The various departments may include finance, research, development, and accounting. All the departments have a role to play in the making of marketing decisions. Stacy’s is a relatively small company compared to industry leader such as Frito North America or Kraft Foods Inc. before it was purchased by PepsiCo, the company only had a handful of employees and served the city of Boston. However, popularity of its products and capital injection from new owners has enabled its expansion and presence of its products nationwide. By the end of Q1 of the year 2005, the company had over 200 employees comprising of both permanent and contracted staff. In the microeconomic environment, suppliers form one of the most critical aspects of a firm’s operations. Delay in receiving supplies has a negative ripple effect since customers will not be served in time. This is likely to lead to customer sat isfaction and customer relationship is likely to be affected as a result. Stacy’s operates in a highly competitive environment where snack manufacturers are very specific about supplies. Stacy’s has however managed to keep reliable suppliers and there is not any time that customers have experiences delays due to shortage f the snacks they offer. In marketing intermediaries can be referred to as a â€Å"necessary evil†. Intermediaries have grown to be one of the most critical elements in the microeconomic environment. They include distributors, resellers, marketing agencies, and financial providers who help in the distribution channel of the products to the customer. They help in the promotion and distribution of its products to the consumer at the end of the distribution channel. Stacy’ operates in a microeconomic environment where they have engaged the services of major reseller chains such as Wal-Mart. According to the company, â€Å"its products can b e found in food retailers across the nation including Shaws, Stop Shop, Roche Brothers, Gelsons, Wild Oats, Whole Foods, Costco (where it is the top-selling snack item), and BJs Wholesale Club†. The company has independent reseller points across the country and since its acquisition by PepsiCo, the acquirer’s network of distribution has helped greatly in enhancing the availability of the products to the end consumers.Advertising We will write a custom term paper sample on Stacy’s Pitaman Chips Cinnamon and Sugar specifically for you for only $16.05 $11/page Learn More Perhaps the biggest asset that a firm can have in the microeconomic environment is its customers. The customer base may range from domestic to international consumers. It also includes government as well as reseller markets. A big part of Stacy’s market is comprised of consumers that purchase products for personal and household use. They form the bulk of the consume r base of the company. Since the company does not deal in products that help manufacture snacks, the business consumers are not very critical to its success. Like the consumer market, the reseller market is composed of all the intermediaries that buy Stacy’s products to sell at a profit. They include major supermarkets and snack outlets that have incorporated Stacy’s products due to rise in demand. The government market mainly centers on buying of food for charity or hunger relief programs. Thy also buy foods for stocking of strategic reserves. While the US government may not be engaged in such activities, Stacy’s works with many not for profit companies to avail the healthy snacks that are associated with it. Other intermediaries like marketing research firms, advertising and consulting have all played an important role in the growth of the company. In the year 2005, the company announced that it was taking its snack business to the UK effectively signaling its intention to pout its footprint on the international market. Besides the local market therefore, the other important factor in the microeconomic environment is the international clients and Stacy’s is implementing the plans. Business firms operate in a competitive environment. Competitors form part of the microeconomic environment where firms present similar or substitute products that sell based on quality or affordability. The snack and food industry in which Stacy’s operates in is saturated with many companies that offer the same products. As a result, competition is intense and any company that would like to survive must come up with strategies to maintain or grow their market share. Another important aspect in the microenvironment are the stakeholders. They form all the interested groups that affect the business operations of the firm. They include the communities that surround the firm in its area of operations. In Stacy’s case, the company has been invol ved with local groups that advocate for the consumption of healthy foods. The Randolph Chamber of Commerce in 2005 for instance praised the company for its socially conscious approach in the production of healthy foods that have no cholesterol. Macro-environment One of the most important factoring the macroenvironment in business is demography. It includes the size, density, race, genders, distribution, ethnicity, and occupation activities of the population that supports a firm’s business activities. Demographic factors come in handy in the development of market segments.Advertising Looking for term paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In the American market where Stacy’s operates, the largest consumers of the type of snacks Stacy’s is offering are teenagers and young adults who fall between the ages of 13-35 years. There is also the age group of 35-44 years who consume almost a third of the national average of salted snacks. The economic environment also forms a critical factor in the macroenvironment of business forms. It determines the purchasing power of the market segment that the firm targets. Stacy’s operate in the American market where per capita income is one of the highest in the world. Growth that the company has experienced since its founding in 1997 can be attributed to the capacity of its potential clients to buy the products offered by the company. The economic environment in which this company operates is highly differentiated and spending patterns differ greatly. As a result, every product that Stacy’s is offering has customer hence the success acquired by the new produ cts it has introduced. The natural environment in which a firm operates also makes up one of the critical elements of the macroeconomic factors. In Stacy’s case, it includes the raw materials that the company uses to manufacture its products and as well as the amount of pollutants, the company adds to the environment. At a time when environmental consciousness is a top priority for governments and corporations, it is important that the policies and business operations that the company pursues be environmental friendly. Failure to which, a company can easily suffer backlash from consumers that can irreparably damage its reputation. Perhaps the most critical of all macroeconomic factors in the current business environment is technology. Technology nowadays is dynamic and businesses that do not adopt capital-intensive technologies are at risk of losing out in the competitive business world. In 2005, Stacy’s opened a high capacity factory in Randolph, Massachusetts that op erates on a 24 hour basis. The main aim was to produce products continuously so satisfy the growing demand for the company’s products. A continuous update of the firm’s technological assets will help keep up with the competition through production high quality products. The political environment greatly affects business operations. This ranges from the laws that have enacted to govern business to the stability of the politics of that particular territory. The political environment where Stacy operates is very mature and rarely do political shocks directly affect the food and snack industry. The laws that exist in the US make it possible for the thriving small businesses through availability of credit and a vibrant market supported by a high per capita rate. At its inception, the above factors played a crucial role in the success that the company experienced. Marketing Mix Marketing is all about identification of the needs of a target market and packaging the products i n a targeted way so that the products can move and the firm makes a profit (Kotler and Phillip 38). It involves firms getting out of their way to satisfy customers’ wants better than what competition offers. Stacy’s products like cinnamon and sugar chips are targeted at health conscious consumers. Thy make the core segment of Stacy’s cinnamon and sugar chips. Success in target marketing can only be brought by doing research an incorporating four factors that Jerome McCarthy referred to as the four P’s. The combination of all the four factors is what is referred to as the marketing mix that is important for firms to carry out research on the potential customers to understand their needs that consumers want for easier identification of the segment. Many scholars assert that the best way to achieve success in target marketing is to include marketing mix that is supported by four P’s. The four P’s are the product, price, place, and promotion. St acys Pita Chip Company Product Stay’s has a wide variety of products among them, Simply Naked Pita Chip, Multigrain Pita Chips, Italian Harvest Pita Chips and Cinnamon and Sugar chips that it advertises directly into the market. These products are unique since they do not contain cholesterol and have a low fat content. The products are specifically meant for the health conscious clientele who technically make up the market segment that the company is targeting. Price The pricing of the products from Stacy’s is friendly to customers. According to the company, it has taken measures to provide friendly prices especially at this time of the credit crunch. The company has settled on products that target consumers have found affordable all along. Place This is where Stacy’s products are available. The products according to the company are available in all major retail centres nationwide. It ensures easy accessibility of the products by the targeted segment of the popu lation. The place can also include the physical store like the retail outlets mentioned above as well as the online stores that where customers can order through the internet. Promotion This is the mode of communication that the company is using to market it products. Stacy’s has used both electronic and print media to advertise its products especially cinnamon sugar chips. 4 C’s The four C’s approach to marketing was first proposed by Robert F. Lauterborn in an effort to help companies adopt ways that encouraged niche marketing as opposed to mass marketing. The model is consumer oriented and involves the consumer, cost, convenience, and communication. He argues that the four C’s (Lauterborn, et al 48) can replace the four P’s. In the approach, the product is replaced by the satisfaction of consumer needs. Pricing is replaced by cost where it’s assumed there is a costs incurred when the consumer does not choose the product or when he chooses to buy al alternative. Place is replaced by convenience which implies on the ease with which the products is accessed by the consumer. Communication takes the place of promotion. Lauterborn argues that promotion for the sake of promotion does not help in marketing. Instead, firms through promotions should seek to communicate with customers. Stacy’s has adopted a targeted approach different from what traditional marketing recommends. It nevertheless includes elements of the 4P’s and 4C’s. Dew Nick captures the approach as follows â€Å"They are their brand, so instead of television commercials, they give away chips in person at trade shows, events, and grocery stores. Their web site is a consistent reflection of the pair as well. Healthy recipes featuring Stacy’s Pita Chips, photos of the team, accompany information about the company and products and every page features a hand-drawn caricature of Stacy herself. The approach worked so well that in 2006, w hen the Andruses were selling US$60 million in chips a year† (Dew, 2011). The company has held a variety of targeted marketing campaigns that have incorporated the four P’s. One of the promotions is the To Stacy, From Stacy campaign where the company sent to every one in the country a box full of chips. The company then asked the recipients to purchase a gift from Stacy’s for anyone that they felt needed. The main objective was to produce awareness through word of mouth. In the above promotion, the product was the company’s chips including cinnamon chips. All the boxes sent out ere free of charge. Though the recipients were asked to purchase the chips for a friend as a gift, the fact that the company sent free products meant a lot. The campaign targeted the entire country, an ambitious marketing style that achieved nationwide exposure for the product. The company has highlighted the success of the campaign and has included it its website a lit of Stacyâ₠¬â„¢s who went on their way to support it. That was success from any marketing point of view. Conclusion Stacy’s prospects look bright. The company is still young and focuses marketing and expansion will sure increase its sales. It is important for firms to carry out research first on the needs of their customers to establish a market segment in targeted marketing is going to succeed. Incorporating the 4P’s is important. However, Lauterborn’s model that includes the four C’s should be given priority alongside 4P’s because of its emphasis on niche carving. When a firm carves out its niche, it assured of a rock solid base that it can rely on in bad economic times and sometimes when, marketing campaigns do not succeed. Stacy’s has adopted the 4P’s for its targeted marketing campaigns. There are many more ways that firms can incorporate the approach to increase sales through marketing. Kotler, Phillip and Gary, Armstrong. Principles of M arketing: (Version 14/E). New Jersey: Pearson Education Inc. 2012. Print. Lauterborn, Robert, et al. Integrated Marketing Communications. New York: NTC Business Books, a division of NTC Publishing Group. 1993. Print. Dew, N. (2011). Identity Chip The Story of Stacys PIta Chips.