Why the Euro Crisis Is an American Problem Assignment

Why the Euro Crisis Is an American Problem - Assignment Example It is estimated that the collapse could generate a 25% decrease in Europe’s gross domestic product (GDP). In effect, the euro crisis would represent a Great Depression of the current century, and this would be a threat to the global financial system (Zuckerman, 2011). According to Frum (2011), if the Euro falls, bonds will lose value in the European banks. This is because banks in the European region hold euro-dominated bonds. The bonds will lose value such that the banks will be forced to either seek assistance from the government, or put to a stop their lending to individual consumers and/or businesses (Frum, 2011). The fall of the euro will adversely affect other nations like Canada and the United States. For one, the financial institutions in Europe may lose their capacity to repay creditors in the United States. The net effect of the crisis will be more pressure on the financial system of the United States. Yet again, it should be considered that majority of the investors in the United States are from the euro zone , and if the eurozone economies fall, the Americans will have a difficult time raising capital for their businesses and new projects (Frum, 2011). The genesis of the crisis is very clear. Just like the United States, Europe was a victim of over-leveraging. The past decade has seen the European Central Bank overseeing easy credit, cross-border lending, and low interest rates which was instigated by a property boom and the increase of debt in households. The bubble has already burst, and the outcome has been the risk of failure to negotiate currency defaults and a series of frighteners (Zuckerman, 2011). It is worth noting that the majority of the Americans see the euro crisis as a crisis generated by government debt and government deficits. The same can be true of Greece, but it is not certainly true of France. If the Euro falls, each nation in the European region will be forced to have its own currency. This means that each nation will have to pay its debt using its own currency and not the euro (Frum, 2011). Europe’s option to avert the crisis is either to stop using the euro to restore each government to its own curren cy or to develop a single pan-European government to manage the new pan-European currency. Both options are not attractive to the United States. The United States has no option but to either suffer from the first option or contribute in support of the second option. Both options will have a considerable effect on the United States, and thus, the American cannot escape the euro crisis, it is their problem. Question 2: State Based Teaching Incentives to Improve Quality of Education Offered to Public Schools For a long time, the focus of the policymakers has been on improving or enhancing teacher quality. In the past few years, most reform efforts or initiatives have included strategies to enhance the overall quality of teachers and the equitable allotment of teachers within states, districts, and schools. The federal government endorsed an act in 2001in respect of education. The No Child Left Behind Act of 2001 is aimed at ensuring teacher quality and fair distribution of teachers. Th e act demands that all states evaluate the allocation of teacher quality, create, and implement plans to enhance teacher quality and assure fair distribution of quality teachers (Fuller, 2010). In the past, local districts have been designing and supporting their individual recruitment programs. This isolated approach generally develops inequities across the states. This is because

Routine Activities Theory (RAT) Analysis

Routine Activities Theory (RAT) Analysis Activity space consists of places people associate with in their daily lives. For instance, your home, work, school, places for entertainment and shopping areas are considered activity space. My activity space is a tri-county area which means that it is a large area that consists of smaller towns instead of a huge metro area. Since I commute to work my activity space consists of major travel nodes and pathways as described by Brantingham and Brantingham. These travel nodes and pathways would be interstate 80 (I-80) that runs West through my town and state route 422 which runs South of I-80 and directly into the city of Youngstown. During my routine I tend to use both I-80 and 422 because they are quicker routes which allow me to avoid passing through a bunch of smaller towns and is a straight shot to the city. Within my activity space the highest potential for the development of a crime hot spot would be toward the eastern portion of route 422 going into the city of Youngstown becaus e it is an area between the city and the suburbs that does not have a strong police presence. This particular area is residential and in close proximity to the high-risk areas (i.e. project/public housing development) and has a wide-range of crime generators and attractors such as businesses, homes, bars, gas stations, convenience stores, and heavy pedestrian traffic due to a nearby bus station. The location of travel routes in conjunction with environmental factors such as impoverished surrounding neighborhoods and the close proximity to major travel routes can be seen as an opportunity for offenders to commit crimes within this area. Brantingham and Brantingham (1999) state that crime generators are particular areas that attract people because of the large number of people that pass through them. this activity space, as described by Brantingham and Brantingham is between the major nodes of transportation and is close to districts in the city that could be seen as an opportunity, to a potential offender who has observed routine activities conducted by pedestrians, members of the neighborhood, and business owners in the area. The routine activities theory draws from Amos Hawleys theory of human ecology. Hawleys theory establishes three key aspects of collective human activities rhythm, tempo and timing which are factors in a life-course as well as the criminal lifestyle. Lawrence Cohen and Marcus Felson (1979) expanded on the principles of human ecology and introduced routine activities theory as an ecological perspective on criminal behavior. The routine activity theory states that there are three components in order for a crime to occur. The first component is a motivated offender or individual that is not only willing but seeking to commit offenses. The second component would be the presence of suitable targets. Suitable targets could be property or individuals that are seen as available or vulnerable. Lastly, the absence of a capable guardian which would be anything that could deter a potential offender (i.e. police patrolling, neighbor outside, alarm system). Cohen and Felson (1979) emphasize that these three components are conducive to a crime event and especially prevalent in the absence of capable guardians. An example of this would be a potential offender(s) attempting to burglarize a home but changes their mind after seeing a police squad car drive by. This type of guardianship applies to certain areas within the city especially those that are heavily patrolled by police or security (i.e. parking decks and high-risk areas). Furthermore, the capable guardian, whether it be an individual (police officer/witnesses/neighbors) or a device (home/store alarm) will reduce the suitability of a target, which in turn will decrease the likelihood of criminal events. Moreover, Cohen and Felson (1979) imply that a successful crime event doesnt require an offender who is motivated to engage in crimes, or act on their motivation for the criminal event, instead a motivated offender should be capable of carrying out their desires. According to the routine activities theory, crime opportunity emerges in the absence of a capable guardian as well as certain environmental factors. For instance, the offender also goes through a routine of sequential activites just like the law abiding citizen does. The combination of what is considered a crime template (the offenders routine intertwined with their prospective targets) and the decisions made by the offender can determine crime patterns. A crime is committed when a triggering event occurs. This triggering event is usually in place when a potential target or victim fits within the offenders crime template (or routine). Possible targets and victims will usually encounter the offender in some manner within their active location, resulting in sharing the activity space or the awareness space of the offender. The possible targets and victims end up being actual targets or victims once the offenders willingness to break the law is set off. This occurs when the nodes and pathways between these nodes are aligned with the offenders potential targets (at that place and time). When these activities are repeated on a daily basis they provide a rubric or template for the criminal to follow. During a criminals daily activity they make decisions that rarely vary from their routine and as a result, breaking the law would be no different from their normal activity and awareness space. Lifestyles or ones routine activities create criminal opportunity by increasing the frequency and intensity of contacts between potential offenders and suitable targets. When a motivated offender is ready and willing, they will seize the opportunity to engage in criminal activity if it is beneficial to them. A potential offenders suitable target is an individual or object that is attractive or vulnerable, such as, a piece of valuable property or someone who is wealthy might serve as a lucrative suitable target (i.e. ransom or extortion). In other words, factors that make a target vulnerable or attractive are crime specific and situational and may dictate a motivated offender(s) likelihood of criminal activity (i.e. an unattended running car a convenience store). I believe that the most likely hot spot in my activity space and based off of the course material, would be state route 422 east going into the city. I state this because this area is known for drug activity and has access to the highway and is within close proximity to a wide-range of businesses, churches, schools, and residential areas. References Brantingham, P. L., Brantingham, P. J. (1995). Criminality of place: Crime generators and crime attractors. European Journal on Criminal Policy and Research, 3(3), 1-26. Brantingham, P., L., Brantingham, P. J. (1993). Nodes, paths and edges: Considerations on the complexity of crime and the physical environment. Journal of Environmental Psychology, 13, 3-28. Cohen, L. E., Felson, M. (1979). Social change and crime rate trends: A routine activity approach. American Sociological Review, 44, 588-608. Cullen, F. T., Wilcox, P. (2010). Encyclopedia of criminological theory. Thousand Oaks, Calif: SAGE Publications.

Baz Luhrmanns Film Adaptation of Romeo and Juliet Essay -- Papers

Baz Luhrmann's Film Adaptation of Romeo and Juliet Shakespeare's use of language reflects the theatre of his day. There were no elaborate set designs, costumes, lighting or sound effects and there were also only a small number of actors playing many different parts. This could get confusing and therefore the language and imagery had to do all the work for the audience, as the words were the only tools available to help them imagine the scenes vividly. In the prologue of "Romeo and Juliet", line number twelve; "Is now the two hours' traffic of our stage" and the very last words; "our toil shall strive to mend", have significant meaning. These sentences, spoken by the chorus, highlight to the audience the key plot elements to come. It gives the audience an idea of what they are about to watch or read and makes the ensuing action more intelligible. This dramatic convention therefore acts almost like a movie trailer. In Baz Luhrmann's film adaptation of the play, the prologue begins with a long shot of a television (within a television), with a reporter speaking to us from inside of it. Behind the reporter's left shoulder are the words "star-crossed lovers" and a symbol of a broken ring. This, in the first minute of the play, already introduces us to the fact that Romeo and Juliet are star-crossed lovers, which is a major theme throughout the entire play. The news reporter then delivers the whole prologue from beginning to end, before the camera zooms further and further in until the point of extreme close up, at which point the prologue changes. This is how Baz Luhrmann achieves a similar effect to Shakespeare's dramatic use of the pr... ...rologue! At the very end of the prologue, the title "Romeo + Juliet" comes up and the 'plus' sign is actually made to suggest a Christian cross. This subtly reminds us of the religious side of the play. This includes the Friar, who is a religious personage, the wedding that Romeo and Juliet have and also the whole theme of destiny and some divinity or higher power looking over and controlling us in life. So in conclusion, this is how Baz Luhrmann's film adaptation of the prologue from "Romeo and Juliet" successfully visually highlights Shakespeare's rich language and imagery. We can see how he has gone through the prologue and then fairly systematically translated its deeper meaning, in remarkably creative ways. He effectively translates all the messages of the prologue in a contemporary and entertaining context.

Blair Water Purifiers India

Blair Water Purifiers India strategic marketing planning process Presented by : Reham Mohamed Moustafa Yara Shahwan Dian Zorkany Rania Zeid Tarek Zeid Strategic analysis ? The Audit Stage ? Scanning the External Macro environment ? Political legal ? Economic factors ? Sociocultural factors ? Technological factors ? Scanning the internal and external micro environment ? Internal-environment analysis ? External microenvironment analyses ? Demand forecast ? End Users needs ? Factors affecting consumer behavior ? Consumer buying decision process ? Competition analysis The market sales chart in 1996 ? The product mapping technique ? Weighted competitive strength assessment ? SWOT analysis ? TOWS analysis ? Setting objectives ? Setting Strategies ? Our suggestions ? Porter Generic Strategies ? Mckinsey matrix ? Ansoff Growth Strategy ? Segmentation ? Targeting ? Positioning ? Entry Strategy recommended Strategic analysis: Strategic planning precedes marketing planning by providing a framew ork within marketing plan might be formulated. Based on the assessment of: 1. Organizational capabilities 2. Threats from environmental forces 3. Competitor’s strength and weaknesses 4. Customers’ needs 5. Demand This must be done through the following steps: The Audit Stage Step one: Scanning the External Macro environment: Any marketing strategy must develop out of a detailed understanding of the environment. This is important to: Identify organization’s strategic position. Decide on the future of the organization. Matching organizational resources and capabilities For scanning external environment we should use the PEST model, as it will scan the whole external environment to give management clues about strategic decisions [pic] pic] Chatterjee analysis in the two visits was centred only on the urban cities neglecting the rural ones and this is a drawback as the rural cities in India count for around 80% of the population, his purpose was to make recommendations on market entry and on elements of entry strategy. Political legal: †¢ Chaterrjie confirmed that India is attractive to foreign investment through liberalization †¢ Foreign companies were taxed on income arising from Indian operations and pay taxes on any interest, dividends and royalties received The government offer favourable tax treatment if foreign investors will locate on one of the free zones †¢ Tax rate is higher than the USA, however the return on investment is higher than USA †¢ Trademarks and patents were protected in India †¢ Legislation in India was expensive and protracted that foreign firms prefer arbitration Our suggested improvements and comments: He should have analyzed the following: †¢ Monopolies legislation: to hedge against any monopolistic actions that may appear in the future †¢ Environmental protection law Employment law and this is important if the market entry will be joint venture or acquisition Economic factors: Chatterjee analysis completely missing the economic factors, as he didn’t analyze the Indian economy in any way He should have analyzed the fol lowing: †¢ Interest rates †¢ Inflation rate †¢ Business cycles †¢ Unemployment rates †¢ Disposable incomes As these factors are important to give insights about the economic conditions and the economic growth for the next years so as to know whether the market is potential for entry or not Sociocultural factors: Chaterjee identified his target market to be around 40 million households and he identified their needs and behaviour, but he missed identifying the whole sociocultural factors from the following perspectives: †¢ Population demographics: population size, age distribution , religion ,social class are important factor to be analyzed by any firm before entering any market †¢ Income distribution †¢ Levels of education †¢ Social mobility †¢ Work and leisure time These factors are important especially that the target market for him was the rich well-educated high social class so it’s important to identify this class and its growth Technological factors: Chatterjee analysis emphasized that technology was only available in large Indian cities; the lack of adequate distribution and communication infrastructure in rural India meant that any market entry would begin with larger Indian cities most likely in the west coast. But he should have analyzed many other aspects regarding this issue: †¢ Government spending on research Government and industry focus on technological efforts †¢ The speed of technology transfer †¢ New discoveries and development †¢ Rate of obsceneness Step two: Scanning the internal and external micro environment In this step we will start by analyzing the internal and external microenvironment then finalize it by the swat analysis, which was missing in chatterjee’s study. He ignored mainly the microenvironment regarding the suppliers, stakeholders and intermediary’s . He only analyzed consumers and competitors. [pic] 2-1 internal-environment analysis: Employees: Blair Company employed over 4000 people with 380 having technical backgrounds and responsibilities Cash Flow: company sales revenue for 1996 would be almost $400 million with an expected profit close to $50 million Annual Growth in sales revenue: averaged 12% for the past 5 years Capital assets: ignored by Chatterjee Sales in the international division: would reach almost $40 million in 1996, about $70 million would come from Latin and south America, $30 million from Europe and $40 million from south Asia and Australia Materials: ignored in the analyses though it’s important to scan the need materials for operation and theirs availability in the market, he only pointed that importing a few key components would be necessary at the start of the operations The Mckinsey 7 S model must be used here to finalize the step of internal marketing audit and this wasn’t done by chatterjee Mckinsey 7S [pic] By analyzing these 7S we can know the firm’s core competences and it’s competitive advantage, which can be augmented for new market entry. Check List for internal audit: While doing internal audit for strategic analysis, we can also use the below check list to recognize the organization’s strength and weaknesses and it must be weighted because some weaknesses are of less importance than others , while other strengths are of more importance than others 2-2 external microenvironment analyses: Stakeholders: these were ignored in the analyses although it’s important to scan the stakeholders for the organization Suppliers: again it was ignored in the analyses, our suggestions that the analyses of the suppliers must have be done from the following perspectives: Their number, their prices, their bargain power (if any), their strategic alliances with competitors (if any present), their distribution channels, their management structure Consumers and demand forecast: Consumer’s analysis is essential for any strategic planning as they are the main concern for the organization and this must be done through: Demand forecasting Consumers (end users needs) First: Demand forecast: Chatterjee estimated the market potential based on collecting unit sales estimates for a 10-year period for 3 similar product categories –vacuum cleaners, sewing machines and colour televisions. In addition a Delphi based research firm had provided him with estimates of unit sales of Aquagard, the largest selling water purifier in India. Chatterjee had used the data in two forecasting models available at Blair Company along with three subjective scenarios -realistic, optimistic and pessimistic. But it was conservative as they described only first time sales not replacement sales and it only applied to industry sales in larger urban areas which was the present industry focus. Second End Users needs: The target segment was around 40 million households plus those in another 4 million households that share common needs. They valued comfort and product choice. They liked foreign brands and would pay higher price for such brands. One thing that seemed certain was that many Indians felt the need for improved water quality. Folklore, newspapers, consumer’s activities and government officials regularly reinforced this need by describing the poor quality of water. Quality suffered especially during the monsoons and because of numerous leaks and unauthorized withdrawals from the water system Better educated, wealthier and more health conscious consumers took steps to safeguard their family ‘s health and use water purifiers to purify the water all over the year. This is the target segment for Chatterjee. They are people who value comfort and product choice. They saw consumption of material goods as a way to a higher quality of life. o His analysis was missing forecasting the growth of this segment as his potential market is based on the educated aware segment but he missed forecasting the growth of this segment as the growth of the segment closely relates to the growth of the sales The analysis also missed a deeper look at the target segment. From our point of view, market survey should be conducted to show in details the target segment preferences, their demographics (age, social class, occupation, style of life) whether they like flavours to be added in the water or not, their ethnic direction, even their political views (if they are anti-Americans or not) as thes e factors may affect potential sales in the short and long terms . Consumers in the target market needs (according to Chatterjee) can be summarized as the following 1) Product performance to remove sediments, bacteria and viruses ) Purchase price this is only concern for consumers who boiled water who count for 50% of the target market 3) Ease of installation 4) Warranty and availability of financing for purchase Factors affecting consumer behaviour: We should analyze the uncontrollable and controllable factors affecting the Indian consumer behaviour, the uncontrollable factors are the sum of the macro environment analysis (PEST) but the controllable factors reflect the marketers efforts in designing the 7 PS in a way that make the product convenient for the consumer so from the analysis of the target market done by chatterjee. Also there are other factors like motivation, life style, consumer perception and attitudes towards the product From the consumer analysis we can summarize that consumers in the target market need product of high quality, medium price (to be able to target a wider segments especially in the rural areas as they count 80% of the population and if they were successfully penetrated this will result in huge sales), ease of installation, warranty is needed, the emphasis on the need of healthy life style and better water will be a motive for consumers to buy the product. For consumer analysis, we suggest that he should have used also the decision making process to know exactly what are the forces that affect the consumer’s buying behaviour Consumer buying decision process: [pic] So according to this model we should analyze how consumers in India become aware of the water problem and so the need for purifiers is recognized, then from where consumers get the information (from magazines, newspapers, reference groups) , then how they evaluate alternatives (based on price or quality or warranty or capacity ,,,,) . Then the purchase and post purchase evaluation Competition analysis: It is very important for any strategic marketing plan to deeply analyze competition especially when it is done for new market entry Steps of Product /Market analysis 1. Identifying the generic need satisfied by the product categories (The need for improved water quality) 2. Identify the product categories (types / Classification) The need for water purifiers for household 3. Identify the specific product-markets Water purifiers, candle filters 4. Identify the product-variants (brands) competing with each other. Chatterjee analyzed the competition in a detailed way, which can be summarized in the following: The market sales chart in 1996: Product |Price |Strength (competitive advantage) |Weakness | |Aquaguard |RS 5500 |Huge personal selling force |Needs electricity | | | |Sales calls |Enormous fixed costs for sales efforts | | | |TV commercials |(100-120 millions on sales commissions | | | |Magazines and newspapers advertising |only) | | | |Advertising expenditures RS 1 million |No st orage capacity | | | | |Slow flow rate | | | | |Stop functioning at 190 volts | | | | |Couldn’t eliminate strong odours | |Puresip |RS 2000 |Water could be stored safely for later usage |Promotional tools was limited as it was | | | |Doesn’t need electricity |sold only by small no of independent | | | | |dealers | |Zero B |RS 2000 +RS 200 |3 stage purification process |Lack of onsumer’s awareness | |(Puristore) |yearly |Prevent iodine deficiency diseases |No heavy advertisement | | | |Water can be stored up to 8 hours |No sales efforts | | | |No electricity or plumbing is needed |Limited distribution | | | |Store 20 litters of water | | | | |TV advertisements and point of sales brochures | | | | |Marketing expenditure RS 3 millions | | |Aquarius |RS 4000 |Remove sediments, heavy metals, bacteria, fungi|Life of the device was listed as 40000 | | | |No electricity is needed but need water |liters | | | |pressure | | | | |Heavy advertising (TV, magazines, newspaper s) | | | | |Perfect design | | | | |Superior distribution channels | | | | |Knowledgeable personnel | | | | |3000 independent dealers | | |Delta brand | |More eye pleasing design | | |Alfa Water |RS 4300-RS 6500 | | | |purifies | | | | |Spectrum |RS 4000 | |Remove only suspended sediments not heavy | | | | |metals or bacteria | |Water Doctor |RS 5200 |Third stage ozonator to kill bacteria | | | | More attractive countertop 6-12 litre | | | | | | | | | | | | |Candle Filters | | | | |(Bajaj ) | | | | The analysis shows that the market is Oligopolistic structure The product mapping technique: Quality Puristore Puresip Aquaguard Weighted competitive strength assessment: We should do the weighted competitive strength assessment in the analysis to be able to see the relative importance of key success factors and the relative strength of each competitor on each of these factors |Key success factor |Weight | | O | T | |-Poor water quality in India as a result of infrastructure. |- Competition in India market regarding water purifies. | |-Reinforcement of government officials and newspapers to improve water | | |quality. Regarding Eureka Forbes | |-Life styles of Indians that value comfort and product quality choice. | | |-Ineffectiveness of traditional methods in bacterial and viruses’ elimination. |Huge sales force that highly motivated and well managed. | |-Liberalization and opened Indian economy to foreign investment. |- Tremendous brand equity. | |-Market in India requires more than one design. | | |-skilled labor in India was around Rs. 20to Rs. 25 per hour less than if |Regarding Ion Exchange. | |compared to that in USA. | |-The weak st rategic component of Aqua guard |-ZERO-B purifies marketing efforts will intensify to increase awareness | |-No filter or purifies in India market can remove iron contamination to a |-New advertising program to increase awareness. | |satisfactory level. | | |-No company in India target rural areas. |Regarding Singer. | |* lack of consumer awareness of the consumers of the ZERO-B | | |*the upper middle class households prefer high price and high quality for |-It was superior in comparison to other primitive products in the markets| |foreign brands |in design and distribution channels | TWOS ANALYSIS | | | |Past Huge success of Blair company. | -Product should be worked by | | |-Brand name in USA. |electricity | |Internal elements |-Regarding water purifies company | | | |experts as superior in term of quality|-Lack of sales office in India. | | |and performance. |*lack of sales force | | |-High technology that certified by | | | |WHO. – Product name (Delight) not knowing | | |- Design distinguished from |it might infringe on any existing | | |competitors |brand in India. | | |-Blair Company employee (4000 people | | | |with 380 having technical background) |-They still faced major issues in | | |-Strong financial position |configuring technologies into physical| | |*sales in the international division |products. | |reach almost $ 140 million in 1996 | | | |* Deligth has a distinguish western | | |External elements |design | | | |*the option of using battery is | | | |available | | | |Strategic options | | |-Poor water quality in India as a |S-O* using high technology that is |W-O | |result of infrastructure. certified by WHO to satisfy the need |*We can use the low cost skilful | |-Reinforcement of government |for pure water in India |labour in India to overcome the | |officials and newspapers to improve |*Using the strong financial and |shortage of sales force in India | |water quality. |international division to build up an | | |-Life styles of Indi ans that value |opportunity in the liberalized Indian | | |comfort and product quality choice. |market | | |-Ineffectiveness of traditional |* Using the high tec. to attack the | | |methods in bacterial and viruses’ |Aquaguard weak strategic components | | |elimination. * Using the high quality products to | | |-Liberalization and opened Indian |satisfy the needs of the upper middle | | |economy to foreign investment. |class | | |-Market in India requires more than | | | |one design. | | | |-skilled labor in India was around | | | |Rs. 20to Rs. 5 per hour less than if | | | |compared to that in USA. | | | |-The weak strategic component of | | | |Aquaguard | | | |-No filter or purifies in India | | | |market can remove iron contamination | | | |to a satisfactory level. | | |-No company in India target rural | | | |areas. | | | |* lack of consumer awareness of the | | | |consumers of the ZERO-B | | | |*the upper middle class households | | | |prefer high price and high quality | | |for foreign brands | | | |*to trade up the users of candle | | | |filters to a better safer product | | | |- Competition in India market |S-T |W-t | |regarding water purifies. |*Using the high technology to compete |*we must try to cope the product tec. | | |with the other brands |with India to be able to overcome the | |Regarding Eureka Forbes. *Using the western design to compete |Indian market competition | | |with competitors | | |-Huge sales force that highly | | | |motivated and well managed. | | | |- Tremendous brand equity. | | | | | | | |Regarding Ion Exchange. | | | | | | |-ZERO-B purifies marketing efforts | | | |will intensify to increase awareness | | | |-New advertising program to increase | | | |awareness. | | | | | | | |Regarding Singer. | | | | | | | |-It was superior in comparison to | | | |other rimitive products in the | | | |markets in design and distribution | | | |channels | | | Step three: Setting objectives: The main objective is to consolidate the Indi an market and stimulate tremendous growth, as the situation in India is attractive for foreign investment and considered to be a window of opportunities The objective is smart as it is specific, measurable, achievable, realistic and time framed Step Four: Setting Strategies: Based on the above situational analysis, we can now choose the strategies that will be used to achieve Blair Company’s objectives According to Chatterjee, he identified two entry strategies †¢ Skimming strategy: which means high price (RS 5900) and high quality Where the product design would be superior with higher performance and quality, longer warranty period, more features and more attractive appearance †¢ Penetration strategy: which means low price (RS 4400) and lower quality Our suggestions: First: Porter Generic Strategies [pic] Using Porter’s Generic Strategies, since the competitive scope is broad and competitive advantage is higher cost. We suggest using Differentiation strategy to enter the Indian market . y using the high technology strength of the Blair Company, the product must be high performance regarding to quality and western unique design. Second: using Mckinsey matrix: [pic] Since the competitive position of the firm is considered strong du e to high technology and strong financial position and the market is attractive, we suggest adopting the Protect Position strategy where the company has to invest to grow at maximum digestible rate and concentrate efforts in maintaining strength From our strategic point of view Blairwater must enter the Indian market by acquisition (high investment) using the low cost Indian labour force and the liberalized investment atmosphere in India. Third Ansoff Growth Strategy: [pic] According to Ansoff growth strategy matrix, Blair Water Purifier Company will adopt the Market Development strategy as the market is new but the product is the existing product. Regardless that the product must have some modifications regarding the Indian market, for example it may need extra purifying stage that the Indian water require, may be a whistle that tells the purifiers users that the unit is functioning probably, a small battery to operate the filters for several hours in case of a power failure (a common occurrence in India and other LDCS) or even permitting users to add fluoride, vitamins or even flavourings to their water. Step Five: STP (Segmentation, Targeting and Positioning) [pic] 5-1 Segmentation: Previously we focused on approaches to environmental, customer and competitor analysis, and the frameworks within which strategic marketing planning can best take place. Against this background we now turn to the question of market segmentation, and to the ways in which companies need to position themselves in order to maximize their competitive advantage and serve their target markets in the most effective manner. In Blair’s company case Chaterjee analyzed his target market to be the better educated, wealthier, and more health-conscious consumers who took steps to safeguard their family’s health hand often continued these steps years around. By estimation Chatterjee thought it would be around 40 million, these consumers were similar in many respects to consumer in middle and upper class households in the US and European Union who valued comfort and product choice they saw consumption of material goods as a mean to a higher quality of life, they liked foreign brands and would pay a higher for such brands He reached the conclusion that his target market is these 40 million households plus those in another four million households who had similar values and lifestyles Chatterjee divided the target segments 40 million as follows: *50 % from the target market boil water *10% from the 50% filter the boiling water *40% used a mechanical device in improving water divided to consumers who use candle filters and consumers who use water purifiers *10 % remaining consumers who know nothing about the problem and if they know they don’t want to pay There are three marketing distinct approaches to marketing strategy which exist s uch as 1 Undifferentiated or mass marketing Product-variety or differentiated marketing 3 Target or concentrated marketing These are well illustrated in Figure Marketing segmentation: Dividing the total market into different units, the units are heterogynous with each other We see that chatterjee divided the market using the following 4 segmentation factors into 4 segments: He used the demographics (age) , social class (to show the buying power ,income and education ),Family size (to show the demand volume ) ,geographic (between rural and urban ) and volume of usage 5-2 Targeting: Choosing one or more segment Chatterjee chooses segment 1,2 and 3 and ignored segment 4 5-3 Positioning: Positioning is determined according to the price strategies that Chatterjee mentioned whether if it skimming or penetration, product design for the skimming strategy would be noticeably superior with higher performance and quality longer warranty period, more features and more attractive appearance than the design of the penetration There are several positioning possibilities performance and taste, value for the money/low price, safety, health, convenience, attractive styling, avoiding diseases and health related bills and superior American technology. The only position he considered taken in the market was that occupied by Aquaguard protect family health and service at your doorstep. According to the differentiation entry that we selected, the positioning should be Superior American technology and design, performance and taste. Due to the three segments that we mentioned above, Chatterjee must design three different marketing mix as shown below: Model of smaller capacity for segment 1, model for larger capacity for larger houses for segment 2 and 2 models for segment 3 that would remove iron, calcium and other metallic containments that were peculiar to particular regions, for example Calcutta. Question 2: The 3 ways to enter the Market: †¢ Joint working arrangement †¢ Joint venture company †¢ Acquisition Main three Factors while selecting the best entry method: Litigation Problems could extend a case for easily a generation †¢ Foreign companies were taxed on Income arising from Indian operations †¢ The foreign company should pay taxes on also any interest, dividends, and royalties received and on any capital gains received from a sale of assets. Licensing Consideration: Chatterjee Analysis †¢ Blair Company Financial Position will be minimal †¢ Expenses: 30,000 in capital for production facilities and equipment , another $ 5,000 for office facilities †¢ Annual fixed costs should not exceeds $ 40,000 †¢ these investments would be offset by the Licensee’s payment to Blair company for technology transfer and personnel training †¢ Decrease of annual fixed costs to $ 15000 once Indian national are hired, trained and left in charged †¢ Duties of the Indian Labor will include seeing how the units are produced in USA with Blair company specification. The licensee would pay to Blair company around 280 R. S for each unit solid in the domestic market and 450 R. S for exported units, so the average will be around 300 R. S Licensing Analysis Brief: †¢ Indian company would manufacture and market the product. †¢ Licensee fees would be remitted to Blair company per unit basis over the term of the agreement Licensing Definition: A contractual agreement whereby a multinational marketer (the licensor) makes available intangible assets – such as patents, trade secre ts, know-how, trademarks, and company name- to foreign companies in return for royalties or other form of payments Licensing Pros and Cons: Pros: †¢ Quick and easy way to enter the market. Could be the only way to open the market. †¢ Provides life extension for products in the maturity stage of their life cycles. †¢ Is a good alternative for foreign productions and marketing? †¢ Royalties are guaranteed and periodic. †¢ Licensing can overcome high transportation costs which make some exports noncompetitive in export market. †¢ Licensing is immune to expropriation. Cons: †¢ No full control over production and marketing. †¢ Royalties are negligible compared with equity investment potential. †¢ There is a danger of creating competition in third country, or even home country markets if the licensee violates territorial agreement. Joint Venture/ Acquisition: Chatterjee Analysis: Financial investment and annual fixed costs would be higher and depnd on the scope of operations. †¢ Estimates of annual fixed expenses via acquisition would be same for joint venture †¢ Estimates for the investment might be considered higher/lower depend on what will be purchased. †¢ Assumption where made on the skimming, penetration pricing strategies Joint Venture Brief: †¢ Blair company will be a partner with an existing Indian company specially for manufacturing and marketing the product †¢ Profits will split between the two companies according to their agreement Acquisition Brief: †¢ Blair company will purchase an existing Indian company †¢ Profits will belong to Blair company Join Venture Definition: A long term partnership between two or more companies sharing equity and risk with the purpose of making profits in a target market. Pros: †¢ Potential for higher profits. †¢ More control over production and marketing. †¢ Better market feedback. †¢ More experience in international marketing. Cons: †¢ Great investment of capital. †¢ Higher level of risk. †¢ Potential conflicts between partners. Acquisition Definition: Ownership by the international firm in foreign markets Pros: †¢ Maximum profits. †¢ Full control over production and marketing. †¢ Better market feedback. †¢ Great experience in international marketing †¢ Integration of operations on a worldwide basis. Cons: High capital and management resources requirements. †¢ Higher risk of expropriation Why Acquisition is the better entry way for Blair Company : Based on all the mentioned analysis we have found that the Acquisition will be the best entry way due to all the acquisition pros the maximum profits, the full control and the better market feedback. In addition it will avoid the Licensing problems example no control over production and marketing as the Indian labor will know how the units are produced and their specifications as they must be trained in order to reduce the cost as the Indian Labor cost is less than the American Labor cost. Therefore, this is considered a negative point; As for the joint venture it is not considered a good entry way as in India the Litigation Problems could extend a case for easily a generation in addition to the higher level of risks and the potential conflicts between partners. ———————– WEAKNESSES Areas of relative disadvantage that: Indicate priorities for marketing improvement Highlight the areas and strategies that the planner should avoid OPPORTUNITIES Environmental trends with positive outcomes that offer scope for higher Levels of performance if pursued effectively: Highlight new areas for competitive advantage THREATS Trends within the environment with potentially negative impacts that: Increase the risks of a strategy Hinder the implementation of strategy Increase the resources required Reduce performance expectations STRENGTHS Areas of (distinctive) competence that: Must always be looked at relative to the competition If managed properly, is the basis for competitive advantage Derive from the marketing asset base S3 Adults 25-45 Social class A, B High income Healthy life style Regions with iron contaminants S4 Adults 25-45 Rural areas Social class c Low income Low infrastructure S2 Adults 25-45 Social class A, B High income Healthy life style Large family size Big houses High volume usage S1 Adults 25-45 Social class A, B High income Healthy life style Small family size Flats residence Low volume usags1e Project content [pic] Submitted to Dr Usama Saleh

Eurofood Case Analysis

EuroFood Case Analysis: History: EuroFood was created by French restaurateur, Mr Vigneau which specializes in the importing and distributing of food products from Europe to Hong Kong. EuroFood has faced a problem with inventory costs. The Olivier Company decided to buy EuroFood on the condition that inventory levels has to be reduced from its current level of 11 million Hong Kong Dollars to at least 4 million Hong Kong Dollars (assumption). In order to achieve the inventory reduction a plan of action has to proposed which details the solution to the current high levels of inventory. All the products brought to Hong Kong are shipped either by plane or through cargo boats (channels of distribution). The exclusively perishable products shipped through airplanes have no inventory records to be kept. The only inventory of Euro Foods is the products shipped via boats. The products shipped through boats are divided mainly into two types: 1. Complete Container: Contains products shipped from the same supplier. Complete container takes about 20 days to ship from Europe to Hong Kong and costs 0. Hong Kong Dollars per kilogram 2. Consolidated container: Contains products shipped from a group of suppliers using the same container as a rented facility. This shipping takes about 30 days to reach the customer and costs about 3 Hong Kong Dollars per kilogram. Main Problem: * The current level of inventory of Euro Foods is worth $11 million. This is too much compared to the Olivier Company which has the same volume of business as Euro Foods with a corresponding inventory level o f only $4 million. The order quantity is high due to wrong forecasting which leads to high inventory costs * Some products have higher inventory costs than its annual sales( Eg: The product Carton Peach has an inventory cost of $437,113 and an annual sale of $ 253,248 which led to profits of only $68,377) * Due to higher inventory levels of the products the annual profit from the respective products are significantly lower compared to products which has lower inventory level. There are too many product categories (around 200 different products) which has higher inventory levels and lower annual sales(Eg: The product Crozes Hermitage 1984 has $158 annual sales but the inventory level is $2045 and total profit is only $47) Solutions: * Cut down the products which has low profit and low annual sales but high inventory costs(Eg:Crozes Hermitage 1984 * Concentrate on top sale products like for example UHT Whipping cream 1 Liter, Portion Butter Unsalted etc. hose annual sales are high com pared to inventory costs * Make the forecasting of all products more accurate by using better forecasting techniques which can reduce the inventory level and ordering quantity more accurate * Top sale products like Whipping cream and Butter has to ordered more frequently based on the accurate forecast (using combined container) rather than storing it because these products can go bad easily. Combine the products from the same supplier to reduce the ordering quantity(Eg: Products from Supplier â€Å"Besnier† can be combined into the same container) * Negotiate with current suppliers to reduce the ordering cost * Seek third party distributors to get a lower shipping cost if negotiation with current suppliers does not work out. Assumption: * The holding costs and inventory costs affect the profit of the products * Time Frame in which the inventory reduction has to be achieved is irrelevant(Assumption)