Administrative Thought and Ethics

The â€Å"Allegory of the Cave† tells about Plato’s idea of the reality of the human situation. In the Allegory, Plato envisioned human existence as like slaves chained together in a deep, dark cave dimly illuminated by a fire burning some distance behind and above them.They chained and fettered in such a way that they have no way to see what is behind them. The Analogy of the Cave tells us that the appearances of things around us and as we understands them, are merely shadows of reality. The realities of these things are inaccessible to us.2. According to Plato, what are the â€Å"Forms?† How does Plato’s doctrine of the formstie in with the Allegory of the Cave?The â€Å"Forms† for Plato is a unified theory of reality, knowledge, and value. In other words, the Forms are concepts or ideas which are eternal rather than physical things. Forms are the incorporeal, eternal entities which constitute the ultimate realities.Reality of things lies in the w orld of perfect world of Forms or Ideas, and physical things are merely shadows of reality.  Ã‚   Plato’s doctrine of form tie with the Allegory in the Cave in the context that both tells that the realities are intangible. What we see around us are merely shadows or imitation of the reality which are ideas or forms.  What does Aristotle say about Plato’s doctrine of the forms and account of the good?  Aristotle regarded Plato’s doctrine of form as old ideas. According to Aristotle, Plato separated ideas from the physical forms of things. Plato held that physical things are merely shadows of what is real; Aristotle says that it is the substance that makes things real, and the essence or the substance of material things do not exist separately form those things.Aristotle says that for anyone to be good, he must first be able to manage his own family well. That is, goodness is reflected by how individual play his or her role in the family. However, the highes t good according to Aristotle can be obtain if we chose to desire a particular objective and is not complicated by desires of everything merely to satisfy our cravings (Aristotle, p. 1)According to Aristotle, what are the â€Å"virtues of thought?† Which of these do we use in making decisions about politics and ethics?The virtues of thoughts according to Aristotle are reason and choice or desire. Aristotle explained that if is reasoning are true and desires are right, it results to an intellect that is true and practical. Of these two, we use choice or desires most in making decisions about politics and ethics because choice or desires directs efforts towards the good actions. In other words, those who have these virtues are men who are capable to make a choice and whose reasoning are true.What is the main point that James Scott is trying to get across in his book, Seeing Like a State?The main point that James Scott is trying to get across in his book is that the state as mos t powerful institution is the great architect of modernization of the society as well as its deterioration by designing a social life that would not be in conflict with progress.It features an authoritarian state which placed â€Å"a single planning authority rather multiple source of invention and change; in place plasticity and autonomy of existing life, was a fixed social order in which positions were designated† (Scott, p. 93). Scott emphasized that high modernism emphasis does not all brings blessings but it also greatly brings disgrace and destruction.  Briefly compare and contrast the following sets of opposing concepts:   Monism vs PluralismIn a nut shell, Pluralism stands for the distributive form of being while the monism for the collective form. Monism held that there is one right way of resolving value conflicts-either by appeal to some supreme value, or to some authoritative ordering value. Pluralism on the other hand refers to the subset of public values suc h as liberty, justice, equality, and community.  Rationalism vs. Anti-rationalismRationalism is concern about the good of the society whether religious or not. It seeks to make morality the sole agenda of life and it declares that must be guided by reason and regulated by science. Aside from being the opposite, Anti-rationalism believes that rational belief alone cannot produce either exciting or justifying reasons. This view held that moral truth cannot be derived an objective judgment of right and wrong.Purposive State vs. Civil AssociationPurposive state according to Michael Spicer is a political association â€Å"in which individuals recognize themselves as united or bound together for the joint pursuit of some coherent set of sustentative ends while civil association† (p. 15).Spicer explained that purposive state is a planned social order that is a â€Å"method of establishing order that consist in limiting freedom of things and men to stay or move about at their plea sure, by assigning to each a specific position in the prearranged plan† (Spicer, p. 15).Civil association on the other hand is â€Å"one in which men and women see themselves as essentially free to pursue their own particular interests and values. Civil associations according to Spicer â€Å"understands themselves as bound together by their recognition of their acknowledgment of certain rules of conduct† (Spicer, p. 21).Work CitedAristotle (Trans. Ross, W.D.) â€Å"Nicomachean Ethics† Book I (Happiness)Scott, J.C. â€Å"Seeing Like a State: How Certain Schemes to Improve the Human Condition Have Failed† USA: Yale University PressSpicer, M. â€Å"Public Administration and the State: A Postmodern Perspective† USA: The University of Alabama

Book Review of A National Party No More

The Conscience of a Conservative Democrat by Zell Miller In A National Party No More Senator Zell Miller writes a non-fiction book that is something of a memoir of his political life as a lifelong Democrat and as well as being a diatribe against the Democratic Party. In 2002 the Democratic Senator Paul Coverdell from Georgia died suddenly and the Georgia Governor Roy Barnes asked Zell Miller to fill in until November of that year and then to run for the position to serve the time remaining in the late senator's term of office. When Miller went to Washington D.C. he claims that he had hoped that he would find Washington to be â€Å"the place where great issues of the day are debated and solved, and great giants walk those hallowed halls.† Instead he discovered what Washington D.C. was not at all like he had hoped and this angered him â€Å"on behalf of Americans† (Miller 8). In his career Miller has served the State of Georgia as an administrator of a number of â€Å"vital agencies, as an assistant to two governors, as head of the State Democratic Party, as Lieutenant Governor, and then as Governor† (Miller introduction no page number). He also served in the Georgia State Senate from 1965-1969. He failed in his attempts to run for the U.S. House of Representatives from Georgia. In addition Miller served in the U.S. Marine Corps and has taught at four different colleges. It is worth noting that the majority of these positions are executive positions not legislative positions so serving as Georgia's United States Senator put him into a relatively unknown form of government where he lacked extensive experience and none on the national level. It appears somewhat incongruous that a marine would be a lifelong Democrat since military personnel currently tend to lean toward the Republican Party. Although Miller served only three years in the Corps it is clear that his experiences affected him greatly because he has written a book Corp Values: Everything You Need to Know I Learned in the Marines.† Miller's book was occasioned by his experiences in the U.S. Senate beginning in 2000, in combination with his advanced age. Miller was born in 1932 according the reverse side of the title page. The book was published in 2003 so Miller was 70 or 71 at the time his book was published. This is certainly not an issue of itself, but one wonders if Miller would make the same claims he had entered the same Senate at the age of forty or fifty. Miller alludes to this when he writes that he has â€Å"arrived at a station in life where I hear the whistle of that moral policeman we all have to answer to . . .† (Miller 1). He takes the occasion to advise â€Å"members of my Democratic Party and other politicians who are so far out of touch with regular Americans to ‘shape up'† (Miller 2). This position, that tacitly assumes he is correct while other party members who disagree with him are wrong, is strongly reminiscent of an elderly gentleman on the brink of retirement who climbs on a soapbox to â€Å"straighten out† the next generation. This is not to say Miller does not make some good points, he just does not prove them nor give the reader sufficient information to determine if Mill is correct. The book suffers significantly because it has no notes, no bibliography and no index. Consequently the reader has no opportunity to check either the statements Miller makes as being either true or false. Many of his claims are supported by anecdotal evidence based on his memory of what happened throughout his career. Miller calls himself a Conservative Democrat, an unusual designation, but not an illogical one. Despite this he is known to have been a supporter of President George W. Bush and announced in 2003 that he would support the Presidents re-election. He spoke at the Republican National Convention in 2004 in support of the President. Such actions hardly indicate a lifelong Democrat. Miller criticizes the Democrat Party because the leaders, he claims, have ignored the opinions of Conservative Democrats in the South, about one-third of the U.S. population, and have told them to â€Å"go to hell† (Miller 9). He appears to assume that all Democrats in the South are Conservative Democrats because he is one and that they all agree with him. He fails to mention the non-conservative Democrats in the South and seems to assume there are none. Miller concludes the Democrat leadership disagrees with Southern Democrats on the critical issues of â€Å"capital punishment, late-term abortion (even with a lot of pro-choice people), trying juveniles as adults, national defense, and the teaching of values in school† (Miller 3). Miller's reasoning process is suspect for a variety of reasons. First, it is not clear that these are the critical issues, at least on a national level. Capital punishment has been left up to the states and should not be regarded as a national issue, as are abortion laws as long as laws do not restrict a woman's right to control of her own body. Trying of juveniles as an adult does not seem to be a national issue either nor should it be. The current system presumes juveniles will not be tried as adults unless there are significant overriding reasons for doing so. The decision of where to try a juvenile is judged on a case-by-case basis which is as it should be. As far as the teaching of values as a national issue, it is clearly an important issue that impacts people throughout the country, but the Federal Government has no basis to determine what values should be taught. Miller seems to have completely forgotten the Tenth Amendment to the Constitution that reserves to the states any powers not delegated to the federal government and not prohibited to the states shall be a state power. It is apparent that many of these critical issues are state issues. National defense clearly is a national issue, but federal taxes, the deficit, Medicare, and Social Security benefits are as well, but Miller doesn't mention these issues. Miller's has a rambling and folksy writing style that slips from story to story and slides from point to point in a chaotic fashion that defies linear analysis. He chooses his anecdotes by cherry picking stories that will reinforce his position even if they are not related to the Democratic Party; on page 145 Miller quotes The Rubaiyat of Omar Khayyam, Winston Churchill, and Rodney King on the same page in support of a chapter entitled â€Å"Give to Bigotry No Sanction.† Certainly a case can be made for citing Rodney King, but the other two sources were clearly not written in support of civil rights in the United States. To his credit Miller admits mistakes he has made during his career. He points out that during 1964 he had â€Å"proclaimed that there should be an ‘investigation of Communist infiltration in the civil rights movement.' What an idiot!† (Miller 143). This is remarkably refreshing given the current climate of politicians who consistently hide what they have done and deny they have done it until they are proven to have done it when they will admit and ask for forgiveness. On the other hand this begs the question as to just how much credence one ought to place in the writings of a self-proclaimed idiot. Miller claims that the Democratic Party no longer represents the majority of Americans and has become distinctly too liberal in relation to the United States' population as a whole. This is an interesting position. Miller does not claim the leadership is wrong on issues, just that they disagree with Southern Conservative Democrats such as himself. This leaves the possibility open that the leadership is correct and the membership is wrong, but Miller fails to allow for this possibility. If this proves to be the case, it appears that Miller is advocating that the Democratic Party concern itself, not with the correct solution, but with gaining power again. A National Party No More: The Conscience of a Conservative Democrat is largely not successful. His conclusion has merit but his treatment of the issues is inferior. The lack of references is a major weakness that could be easily corrected. Miller's failure to move in a linear, logical fashion in favor of using a disjointed, episodic style greatly reduces the effectiveness of Miller's writing. Rather than being the scathing indictment he hopes to provide that will help the Democratic Party, Miller's book feels more like a farewell by a statesman whose party has evolved while he has not. His gloom and doom predictions for the Democratic Party made in 2004 proved him incorrect since the Democratic once again gained the majority in both houses. Although Miller makes some interesting points that have validity, his book should be read with circumspection. Works Cited Barnes, Fred. â€Å"Zell Miller Endorses Bush.† 29 Nov. 2003. The Daily Standard. 20 April 2007. Miller, Zell. A National Party No More: The Conscience of a Conservative Democrat. Atlanta: Stroud and Hall Publishing, 2003. â€Å"Text Of Zell Miller's RNC Speech.†Ã‚   01 September 2004. CBS News. 20 April 2007   ;http://www.cbsnews.com/stories/2004/09/01/politics/ main640299.shtml;.

East Asian Studies Essay Example | Topics and Well Written Essays - 750 words

East Asian Studies - Essay Example Confusian teachings often concentrated on the development of the intellect rather than innovation and this ensured that many Chinese chose to remain in an almost static state (Confucious 13). Because of the influence of Confucianism, it became the norm for many of the Chinese people to want their lives to remain the same. The system of government of the land did not change because despite there having been many dynasties which ruled China from the ancient to the modern period. One will find that despite these numerous dynastic changes, none of the administarative rituals nor the system of governance was significantly changes to encourage the growth of the society (Holcombe 6). The elite consisting of the imperial family and the nobility, remained the same and it is these who competely dominated all matters of importance in the society. It was in the interests of these individuals to ensure that everything remained the same because it is the established system which ensured that their power was secure (He and Warren 272). It is possible that it is the elite which fostered the static nature of Chinese society since it allowed them to remain dominant while at the same time keeping the lower classes of the society subservient to their interests. The other reason why China was not able to achieve a powerful status on the global state which would have spurred its modernisation was its aversion to matters concerning the military. The Chinese society frowned upon the development of the military because the latter was considered to be a cause of instability rather than a guarantor of security (Ebrey 478; Paludan 136). Consequently, the military was extremely underfunded and its main role in the society was essentially ceremonial. It is possible that aversion to the military was based on the history of the nation where at the end of certain dynasties, the

Physics assignment Essay Example | Topics and Well Written Essays - 500 words

Physics assignment - Essay Example The air opposing the spinning ball causes different air friction at different sides of the ball depending upon the direction of rotation. Due to differing air action on two sides the ball curves towards one side, if a ball is rotating anti-clockwise, the air on its right side causes more impedance because of the ball surface moving against the wind, than on its left side. This is moving in the direction of the wind hence causing the ball to curve towards left. Ball A will travel longer in the air. It happens because the smoothness of the ball causes the air to curve around its surface without creating a lot of resistance during its motion, thus the air drag is low, where as ball B will travel shorter in the air. This is due to the rough surface of the ball that will act as small pockets to the air that is curving around the ball, hence causing air friction on it. This will reduce the energy of ball B greatly. The ball B hence, will travel a shorter distance compared to the Ball A. The S waves travel perpendicular to the direction of the vibration, where as the P waves travel in a direction parallel to the oscillations of the particles. The P waves travel with twice the speed of S waves. The P waves travel in forms of compression and rarefaction zones whereas the S waves travel in form of ripples. The P waves starts forming much earlier than the S

FMLA Research Paper Example | Topics and Well Written Essays - 1000 words

FMLA - Research Paper Example Significance, Function and Benefits i. To shun discrimination against female workers. ii. Employers must have 50 workers in their workplaces for implementing FMLA. iii. Leave must be approved for any worker that has worked at least 1250 hours in the previous 12 months. iv. The law requires that the employee should be restored to her previous status v. The aforesaid laws benefit a lot to those workers who qualify for leave. c. Court Rulings of FMLA i. case of Mitchell v. Chapman, USA (2003) ii. case of Darby v. Bratch (2002) iii. case of Cantley vs. Simmons (2002) iv. case of Coleman v. Court of Appeals of Maryland (2010) III. Conclusion FMLA advantageous for employees as it allocates them their health care rights. Family Medical Leave Act (FMLA) Introduction The  Family Medical Leave Act  came into being in the year 1993 to strike a balance between the employers and the employees in a scenario where employees have to take extended medical leaves in a serious condition which inclu des pregnancy or to take of any family members. The aims of promulgation of mentioned law is to safeguard the interest of the employees. It does not relate to pay the employee during the said period provided the employee does not otherwise have vacation in store. The eligibility of employees can be mentioned as: He or She is in the employment of an organization at least for a period of one year (not consecutive); He or She has worked at least 1250 hours during a year before leaving the current employer. The 12-month period immediately concludes before the leave; He or she works at a location where at least 50 employees are working or it is within the ambit of 75 miles (Budd & Brey, 2003). There are many advantages of FMLA. 12 weeks unpaid leave on the forward mentioned situations are given such as for newborn child of the employee, for adoption or foster care, for serious health condition of immediate family member and medical leave provided employee is unable to work due to precari ous health condition (Post & Siegel, 2003). Discussion The basic idea of introducing Family and Medical Leave Act of 1993 (FMLA) is to provide assistance to employees in balancing their work and family life. The act in question provides qualified employees with two sorts of job-ensured leave a) regular leave and b) military family leave. The FMLA covers both private and public sector employers. FMLA leave in general considered unpaid leave. Historically, Family and Medical Leave Act (FMLA) came into limelight twenty years back when Mr. Bill Clinton, the then President sent the bill to the competent legislative body for consideration (Aitchinson, 2003).   The said act turned into law on August 5, 1993, soon after the 103 congressmen voted in favor of it. This is binding on all employers having more than 50 employees. Later on it was amended in the initial phase of 2008 during the incumbency of President Bush. The National Defense Authorization Act replaced FMLA. In accordance with the mentioned act qualified workers can avail 26 weeks of leave for a spouse, child, parent or other dependent family member to take care of the injured person from the armed forces (Budd & Brey, 2003). Significance Before promulgation of cited Acts, which later on converted into laws, to shun discrimination against female workers in the case of newly have born child. At that time, only those workers got promotion and other benefits who had given up their desire for a family. Of

Seven Oaks Shopping Centre Essay Example | Topics and Well Written Essays - 750 words

Seven Oaks Shopping Centre - Essay Example With a number of food outlets and other service stores, the mall provides a stop point shop for all class of people. At least the mall has something to offer for the visiting customers. The available shops offer customers what they need and when they need it. It is a perfect place to relax, grab something to eat and meet for special occasions. The diverse portfolio in the mall is more than $8.7 billion of retail, industrial, office and other offices.  ¬1Located in Abbotsford, Seven oaks shopping centre neighbors a number of super built structures offering different services to the people. It borders Mill Lake Park on the south. The park is one 1.  Ross, Ian. "Housing Starts Build Banner Year under a Blue Sky."   March 1, 2005.of the attracting sites in Abbotsford. A number of people usually take time to relax in the park. Before visiting the park, at least visitors can visit the mall to buy snacks. The mill Lake Road offers a good connection to the shopping mall. The mall is al so close to the Abbotsford’s senior secondary school on Southwest and also Abbotsford Arts centre. There is also the Ravine Park that is connected to the mall by Bourquin crescent. The George Ferguson way connecting two main countries is also a plus to the mall since people travelling from the United States. The mall is also borders Real Canadian superstore, which is a source of some products being used in the mall.   Abbotsford is known for its unpredictable climatic conditions, it is however known for its cool climatic conditions.

Interview report about education Research Paper

Interview report about education - Research Paper Example People make money by selling their scientific knowledge and related skills to the concerned buyers. This imparts the need to improve the quality of education in general and the scientific education in particular so that the world’s civilization can touch new heights. Likewise, improving the quality of schools as the platforms of deliverance and exchange of knowledge is no less important. To achieve these purposes, a qualitative study was conducted to evaluate people’s perceptions on education and the potential ways in which education can be improved. A total of 15 people were included in the survey, 11 of which were students and were outside the professional education community, while 4 of the research participants were from the professional educational community. There were 8 questions in total in the survey. Question statements are shown in Table 1. Table 1: Questions of survey Question No. Question Title Question Statement 1 Significance of schools Why do you think w e have schools? 2 Significance of science classes Why do you think we have science classes? 3 Outcome of holistic success of schools If all schools were very successful, what do you think the result would be? 4 Outcome of holistic success of science classes If all science classes were very successful, what do you think the result would be? 5 Learning needs and processes What do you think students should learn and how should they learn? 6 Learning needs and processes of science classes What do you think students should learn in science classes and how should they learn it? 7 Ways to improve schools What would you suggest that schools do differently so that they could be successful? 8 Ways to improve science classes In the sciences specifically, what should be done differently in order to be successful? Table 2: Particulars of the research respondents Name Maximum Education Gender Age (Years) Religion Country A PhD (Geotechnical Engineering) Male 62 Christian USA B MS-Comparative Reli gion Studies Female 35 Christian USA C Master of Business Administration Male 25 Muslim India D BSC-Mechanical Engineering Female 33 Christian USA E Intermediate Male 18 Christian UK F Grade 9 Male 15 Jew Israel G Grade 8 Male 14 Christian Australia H Grade 7 Female 13 Jew Australia I Grade 6 Female 12 Muslim Pakistan J Grade 5 Male 11 Hindu India K Grade 3 Male 9 Christian China L Grade 2 Female 8 Hindu Nepal M Grade 1 Female 5 Christian USA N Upper Nursery Male 5 Muslim USA O Lower Nursery Female 4 Buddhist Japan Findings Common themes in the responses to all questions were identified. Table 3 lists the common themes identified in the answers of the respondents along with the respondents that supported them. Table 3: Common themes in responses Question No. Common Themes in Response to Question 1 To have a formal and structured educational system 2 To develop an understanding of the way things work 3 Demand of good jobs would outweigh the supply 4 Very rapid technological advanceme nt 5 Students should learn ethics and science. They should learn them in schools 6 Corporate social responsibility in addition to the traditional science education. Teachers of science should be experts in professional ethics 7 Upgrade the curriculum to incorporate latest knowledge 8 More practical work, and provision of technical training including software Response to Quest

Infant Mortality in Maryland Essay Example | Topics and Well Written Essays - 1500 words

Infant Mortality in Maryland - Essay Example According to reports, Maryland is considered to have the highest household income of any other US State garnering a GDP of at least $68,080 in the year 2007 which notes the capability of the community to handle the financing needed to complete the projects and programs needed to be provided to the society. One of the most important factors considered in community healthcare issues is the factor concerning mortality rates. This issue is much intertwined with the healthcare provisions that local governments are able to provide to their territories of concern depending on the population rate of the place (Johnson, 2005: Internet). Certainly, when it comes to smaller states, this issue is given a high regard as it also determines the capability of the local government to give the needs of their people. When it comes to mortality rate issues, this mainly concerns the ability of the states to hold their capability on providing community health care especially to the newly born. From this point, it could be accepted that this factor could also help evaluate the strengths and the weaknesses of the local government of the community in providing ample support to the healthcare needs of the entire society. In this regard, the infant mortality rate of Prince Georges County in Maryland shall be examined to be able to notice the problems and the weaknesses of the community health car... Certainly, when it comes to smaller states, this issue is given a high regard as it also determines the capability of the local government to give the needs of their people. When it comes to mortality rate issues, this mainly concerns the ability of the states to hold their capability on providing community health care especially to the newly born. From this point, it could be accepted that this factor could also help evaluate the strengths and the weaknesses of the local government of the community in providing ample support to the healthcare needs of the entire society. In this regard, the infant mortality rate of Prince Georges County in Maryland shall be examined to be able to notice the problems and the weaknesses of the community health care provisions in the said place as they are marked by health statistics to be among the counties having the lowest mortality rates in the United States. Background of the Issue The drop-down of the infant mortality rate in Maryland determines the need of the said state to improve their health care facilities as well as their health care processes. It has been mentioned through reports that in the year 2000 that the infant mortality rate in the said county has dramatically fallen down to as low as 7.4 deaths in every one thousand live births (HD, PGC, 2003: Internet). This decline of infant's life span stretches to both the white and the black communities of the said state. Because of this situation, an issue against the healthcare processes practiced within hospitals in Maryland specifically in Georges County has been questioned as to how the healthcare givers are able to apply the right procedures in giving care to the newly born babies. Among their concerns, also include issues on giving proper

Threat of Information Technology to Law Enforcement Essay Example for Free

Threat of Information Technology to Law Enforcement Essay Information technology can be defined as â€Å"Any equipment or interconnected system or subsystem of equipment that is used in the automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information. The term information technology includes computers, ancillary equipment, software, firmware and similar procedures, services (including support services), and related resources†. (Section 508 Definitions) In present days, the use of information technology has become a life blood for every organization. In this regard, the internet has greatly effect on the world of business transactions, and the fast price declines of telecommunications bandwidth and computing power are having a dramatic impact on the financial world. All banks and financial institutions have connected their network by using IT and hence made it possible that user can withdraw and send payment from one place to another in no time. It becomes very easy to make an online debit or credit card payment. Electronic commerce has been rapidly increasing not only in B2B business to business transactions but also in B2C business to consumer transactions. Simultaneously, the fast expansion of electronic-commerce has brought about important changes in the territory of settlement, which is inevitably incidental to transactions. Paper-based payment by check, which is a normally conventional method of settlement, has been used in fewer cases due to a altering connection between sales transactions and settlement with the development of IT and the expansion of Internet-based financial transactions. However, some new ideas have emerged in terms of legal constitutions, legal theories, legal concepts, and concerning conventional settlement. Use of IT unable the development of procedures financial markets, and instruments that economist in the past could only theorize about. Financial transactions can be settled in real time although the contracting parties may be hundreds of miles apart. As technology has progressed, Electronic-money is being introduced as the newest method of exchanging value. Obviously, the electronic exchange of money is by no means a new invention. Financial institutions and Banks have been using computers to deal with one another for quite some time. Alone in the United States, in terms of the volume of dollars exchanged, the computer-based Fed-wire and Clearing House Inter-bank Payments System (or CHIPS) together account for 90 percent of all transactions. Besides, 90 percent of individual transactions are still made by check and cash. With the huge advancement in information technology several payments and collections methods have been developed and used successfully. â€Å"The rise of the Internet and the speed of financial transactions facilitated by computers have expanded money laundering opportunities and activities in the latter half of the 1990s. There are increasing numbers of Webs sites that solicit money for transfer offshore, the rise of internet gambling and of virtual banking have made it possible to launder money without any infrastructure to run or regulate international banking operations. Instead, the rise of information technology and the growth of uncrackable encryption have provided the possibility of laundering money with greater facility and with almost perfect anonymity. All that is needed is a computer†. (Shelley, n.p.)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The rise of the new IT has helped an incredible communications revolution, also it has led to the growth of money laundering in some of the most remote areas in the world. Some important locations include Nauru, Vanuatu and the Marshall Islands through whose banks millions have been laundered in the last couple of decades. â€Å"Facilitating the rise of virtual banking in offshore locations has been the willingness of major banks to receive funds that have been routed through these locales. While well-written software could screen these transactions and prevent the absorption of these funds into mainstream banking centers, this has not occurred†. (Shelley, n.p.) What is Money Laundering?   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   â€Å"Electronic Money Laundering covers the ABCs of money laundering and its connection to drug trafficking, terrorism and the global underground economy.   It traces the relevant statutory history from the Bank Secrecy Act of 1970 onward†. (Farber, n.p.) How Money is Laundered Typically, by moving it from one state to another electronically or physically and obscuring its origin through complicated financial transactions. Financial Action Task Force (FATF), calculates of the amount of money laundered yearly worldwide from the illicit drug trade alone range between $US 300 billion and $US 500 billion. Usually money laundering has three stages: placement, where illicit cash is converted into monetary instruments or deposited into financial system accounts; layering, where the funds are moved to other financial Institutions; and integration, where these funds are used to acquire assets or fund further activities. The credit card industry includes: (1)   â€Å"Credit card associations (associations), such as VISA and MasterCard, which license their member banks to issue bankcards, or authorize merchants to accept those cards, or both; (2)   Issuing banks, which solicit potential customers and issue the credit cards; acquiring banks, which process transactions for merchants that accept credit cards; and (3)   third-party processors, which contract with issuing or acquiring banks to provide transaction processing and other credit card–related services for the banks†.( Money Laundering Extent of Money Laundering through Credit Cards is Unknown, pg, 1, 2) According to Assistant Director James E. Finch, of the FBI’s Cyber Division â€Å"The advent of new electronic currency systems increases the risk that criminals, and possibly terrorists, will exploit these systems to launder money and transfer funds globally to avoid law enforcement scrutiny and circumvent banking regulations and reporting.†   (Digital Currency Business E-Gold) Representatives of regulatory bodies, law enforcement agencies and gaming and credit card industries expressed mixed views concerning the vulnerability of Internet gambling to money laundering. According to law enforcement officials gambling on internet could be used as a primary motive for laundering criminal proceeds at the comparatively obscure layering stage of money laundering. Moreover, officials admitted the lack of adjudicated cases involving money laundering via internet gambling sites but referred what they believe to be leading factors, including the deficiency of any industry regulations or oversight. Regulatory gaming and banking officials did not consider internet gambling as being especially susceptible to money laundering. Particularly, when credit cards, which make a transaction record and are subject to comparatively low transaction limits, are employed for payment. Similarly, officials of gaming industry and credit card did not believe Internet gambling posed any peculiar risks in terms of money laundering. According to gaming industry officials Internet gambling was any more or less vulnerable to money laundering than other types of E-commerce, in their view, the financial industry, which is primary responsible for the payments system, is suited to monitoring for doubtful activity in the area than the gaming industry itself. Money Laundering Methods Electronic Funds Transfer Also known as wire transfer or telegraphic transfer, this method of money laundering consists of sending funds electronically from one nation to another in order to avoid the need to physically transport the currency. Postal Money Orders The purchase of money orders for cash provides opportunities to money launderers to send these financial instruments out of the state for deposit into overseas or offshore account. Credit Cards Overpaying credit cards and keeping a high balance in credit cards gives money launderers right of entry to these funds to purchase high value items or to change the credit balance into checks. Casinos In this method cash may be taken to a casino to buy chips which can then be redeemed for a casino check. Refining In this method the money launderer exchange small denomination bills for larger ones and can be carried out by a person who change the bills at a number of different banks in order not to raise suspicion. Structuring Smurfing Smurfing is perhaps the most used money laundering method. In this method many peoples who deposit cash into bank accounts or purchase bank drafts in amounts under $10,000 value to avoid the reporting threshold. Currency Exchanges and Money Services   Currency exchanges and Money services render a service that enables peoples to exchange overseas currency that can then be transported out of the city or country. Money can also be wired to accounts in other states. Other services provided by these businesses include the traveler’s checks, sale of money orders, and cashiers cheques. Asset Purchases with Bulk Cash In method of money laundering a money launderer may but high value items like cars, boats or other luxury items like electronics and jewelry. Money launderers will use these items but will distance themselves by having them registered or bought in a company’s name. Legitimate Business Individuals or criminal groups may invest or take over in businesses that usually handle a high cash transaction volume in order to mix the illicit moves with those of the legitimate business. Criminals may also buy businesses that receive cash payments, including bars; currency exchange shops restaurants, night clubs, and vending machine corporations.  Money launderer will then insert criminal funds as false income mixed with revenue that would not otherwise be adequate to maintain a legitimate business. Value Tampering â€Å"Money launderers may look for property owners who agree to sell their property, on paper, at a price below its actual value and then accept the difference of the purchase price under the table. In this way, the launderer can, for example, purchase a $2 million dollar property for $1 million, while secretly passing the balance to the seller. After holding the property for a period of time, the launderer then sells it for its true value of $2 million†. (Money Laundering A Preventive Guide) Loan Back In this money laundering method a criminal furnishes an associate with a sum of illegitimate money and the associate makes the paperwork for mortgage or a loan back to the criminal for the same amount, including all of the essential documentation.  This makes a false impression that the criminals funds are legitimate about our national security†. (Electronic Money Laundering An Environmental Scan) Effects of Money Laundering â€Å"Money laundering has far-reaching consequences: It makes crime pay; it allows drug traffickers, smugglers and other criminals to expand their operations. This drives up the cost of law enforcement and health care (e.g., treatment of drug addictions). It has the potential to undermine the financial community because of the sheer magnitude of the sums involved. The potential for corruption increases with the vast amounts of illegally obtained money in circulation. Laundering diminishes government tax revenue and therefore indirectly harms honest taxpayers and reduces legitimate job opportunities. Perceived ease of entry to our country attracts an undesirable element across our borders, degrading our quality of life and raising concerns â€Å"The key to control of international crime may depend on cutting off the flow of illegal profits to criminal organizations. It is estimated that $300 billion of dirty money may be laundered each year, its origin and ownership obscured as it passes through financial institutions and across national boundaries in an effort to hide and protect it from law enforcement authorities. Criminal organizations, like legitimate businesses, enjoy a swift and nearly risk free conduit for moving money between countries wire transfer systems. Illicit wire transfers are easily hidden among the 700,000 mostly legitimate wire transfers that occur daily in the United States, moving well over $2 trillion†. (Information Technologies for the Control of Money Laundering) The OTA was asked by the Permanent Subcommittee on Investigations of the Senate Committee on Governmental Affairs to evaluate the proposed use of techniques derived from AI research to monitor wire transfer traffic and realize doubtful transfers. Furthermore, fully automated computer screening of wire transfers was found to be almost impossible for some technical reasons. Nevertheless, OTA analysts developed and assessed a number of alternative configurations of technology that, combined with obvious legal and institutional innovations, could greatly improve the capability of law enforcement agencies to discover and prosecute money launders seeking to exploit United States. In addition, wire transfer systems and financial institutions all of these suggested configurations entail some social costs and economic, including some possible diminution of financial privacy, strategies are proposed for minimizing these costs while improving the possible usefulness of IT in control of money laundering.          Future of Money Laundering Cyber payments â€Å"The term cyber payments is just one of many used to describe systems which facilitate the transfer of financial value (i.e., digital currency, e-money). In fact, these developments may alter the means by which all types of financial transactions are conducted and financial payment systems are operated. Such transactions may occur via the Internet or through the use of smart cards which unlike debit or credit cards actually contain a microchip, which stores value on the card. Some Cyber payments systems use both. E-Cash There are several systems of e-money. There are stored value cards such as MONDEX which is a rechargeable card (charged by putting it in a special slot in an ATM), and is both an access device and a self contained store of value. Further to this is Internet-based payment systems that use the Internet’s telecommunications capability to facilitate financial transactions with other users. The personal computer which serves as the user’s interface with the Internet payment system can also store value and is therefore, also an access device and self contained store of value. Morris-Cotterill (How Not To Be a Money Launderer, 1996) describes the Internet as being one of the greatest opportunities for laundering because of the total lack of traceable transactions, the use of encryption software will further make transactions totally secure. With the Internet, being connected to anywhere in the world is no problem and this will allow cross border movements of capital to take place. It remains to be seen whether money laundering managers take advantage of these new technologies to circumvent any legislation on other traditional laundering techniques (smurfing, wire transfers, bank drafts for example). It is however, a worry to the authorities†. (International Money Laundering Information Bureau) Conclusion Money laundering may have shocking social consequences. Laundered funds furnish financial support for arms dealers, drug traffickers and other criminals to operate and expand their operations. Investigations disclose that criminals manipulate financial systems in Canada and other countries to support a broad range of illicit activities. For instance, drug trafficking alone generates millions of dollars in illicit funds for criminal organizations annually. Businesses backed by the proceeds from crime produce unfair competition and can insolvent legitimate competition in the market. Works Cited Digital Currency Business E-Gold Indicted for Money Laundering and Illegal Money http://www.usdoj.gov/opa/pr/2007/April/07_crm_301.html Accessed, June 14, 2007 Electronic Money Laundering An Environmental Scan http://ww2.ps-sp.gc.ca/publications/crim_jus/money_laundering_e.asp Accessed, June 14, 2007 Farber Dave, (08 Dec 1995), IP: Information Technology for Control of Money Laundering Information Technologies for the Control of Money Laundering http://stinet.dtic.mil/oai/oai?verb=getRecordmetadataPrefix=htmlidentifier=ADA336940 Accessed, June 14, 2007 International Money Laundering Information Bureau http://www.imlib.org/page13_future.html Accessed, June 14, 2007 Money Laundering A Preventive Guide http://www.rcmp-grc.gc.ca/poc/launder_e.htm Accessed, June 14, 2007 Money Laundering Extent of Money Laundering through Credit Cards is Unknown (July, 2002 ) Report to the Chairman, Permanent Subcommittee on Investigations, Committee on Governmental Affairs, U.S. Senate, (page 1,2) Section 508 Definitions http://www.grc.nasa.gov/WWW/Purchase/Section_508_def.htm Accessed, June 14, 2007 Shelley Louise (n.d.), Money Laundering, Organized Crime and Corruption

Heineken Is One Of The Worlds Pale Lager Marketing Essay

Heineken Is One Of The Worlds Pale Lager Marketing Essay Heineken is one of the worlds huge pale lager and is dedicated to grow and remain independent, made by Heineken International since 1873. The trade name that stands for the founders name Heineken is presented in almost all countries on the planet earth and is one of the worlds most valuable international premium beer brand. It is very popular in the United States, Europe and even Middle Eastern countries such as Egypt, Syria, Iraq and Sudan. Their international brands are Heineken and Amstel, but the group brews and sells more than 170 international premium, regional, local and specialty beers and ciders, including Cruz campo, Birra Moretti, Fosters, Maes, Murphys, Newcastle Brown Ale, Ochota,  Tiger, Sagres, Star, Strong bow  and  Zywiec. It is available in a 4.3% alcohol by volume, in countries such as Ireland. Heineken has been able to remain one of the worlds leading consumer and corporate brands for more than 130 years. Famous brands include Amstel, Europes third-largest selling beer, Cruzcampo, Tiger, Zywiec, Birra Moretti, Ochota, Murphys and Star. They are more than 119 breweries in more than 65 countries brewing a Group beer volume of 139.2 million hectolitres. In this report we going to Discover more about company, strategy, as well as their operations in EUROPIAN region. 1.1 History The Heineken story began more than 140 years ago in 1864 when Gerard Adriaan Heineken acquired a small brewery in Amsterdam. Since then, four generations of the Heineken family have expanded the Heineken brand and the Company throughout Europe and the rest of the world. Values and principals Heineken morals and ethics are not a lavish: they are essential to every level of business. Heineken is committed in sustainable development, in optimiseing their financial results with nominal impact to business atmosphere. To do this, they abide with number of governing business principles and three other core values such as- respect, enjoyment and quality that reflect their passion for beer and respect for their employees, business partners, customers, shareholders and all others who are connected to company. 2.0 Marketing audit for Heineken The marketing audit is a fundamental part of the marketing planning process. It is conducted with implementation of the plan. The marketing audit considers both internal and external marketing planning, as well as review of the plan itself. PEST analysis is an audit of an organizations environmental influences with the purpose of using this information to guide strategic decision-making. The PEST technique involves assessing four sets of factors: Political/legal, Economic, Socio-cultural, and Technological. The assumption is that if the organization is able to audit its current environment and assess potential changes, it will be better placed than its competitors to respond to changes. PEST analysis is concerned with the environmental influences on a business.The acronym stands for the Political, Economic, Social and Technological issues that could affect the strategic development of a business. Identifying PEST influences is a useful way of summarising the external environment in which a business operates. However, it must be followed up by consideration of how a business should respond to these influences. The table below lists some possible factors that could indicate important environmental Influences for a business under the PEST headings: Political / Legal Economic Social Technological Environmental regulation and protection Economic growth (overall; by industry sector) Income distribution (change in distribution of disposable income; Government spending on research -Taxation (corporate; consumer) Monetary policy (interest rates) Demographics (age structure of the population; gender; family size and composition; changing nature of occupations) Government and industry focus on technological effort -International trade regulation Government spending (overall level; specific spending priorities) Labour / social mobility New discoveries and development -Consumer protection Policy towards unemployment (minimum wage, unemployment benefits, grants) Lifestyle changes (e.g. Home working, single households) Speed of technology transfer -Employment law Taxation (impact on consumer disposable income, incentives to invest in capital equipment, corporation tax rates) Attitudes to work and leisure -Rates of technological obsolescence -Government organisation / attitude Exchange rates (effects on demand by overseas customers; effect on cost of imported components) Education Energy use and costs -Competition regulation Inflation (effect on costs and selling prices) Fashions and fads Changes in material sciences Stage of the business cycle (effect on short-term business performance) Health welfare Impact of changes in Information technology Economic mood consumer confidence Living conditions (housing, amenities, pollution) Internet! 2.1.1 Political Efforts to reduce levels of alcohol consumption: Governments conduct promotion to change public consumption, e.g. anti-drink and drive behaviour. Associated with this is increased regulation on the nature and style of alcohol advertising. For example, it is prohibited in Austria, Denmark, Finland, Norway and Sweden. Alcohol promotion has been banned on TV in France and, in the UK to reduce its influence on younger TV and radio audiences. 2.1.2 Economical Implementation of the Single European Market (SEM) enabling freedom of movement of goods and services, people and capital across national borders brought opportunities and threats to the brewing industry. It has allowed firms to invest equity to acquire full-ownership of established breweries across Europe, rather than minority holdings. At a production level, it has encouraged the location of breweries and associated logistics distribution centres to be made on cost-efficient criteria rather than regional or national obligations, enabling an international, and even global, approach to beer production. At the same time, the European logistics industry has been liberalized in the lead up to 1992 with the removal of national licenses, quotas and control within the road-transport sector, although there remains a dominantly national flavor to its provision. As yet, the unification of taxation, especially excise duties across Europe which could ease administration, is only under discussion. The difficulties of implementing the proposals are considerable. However, with the current variations in excise duties encouraging a black market, especially between the UK and France, movement is afoot to reduce the extreme variations. The publicity associated with the substantial cross-Channel movement (or bootlegging) of alcohol and tobacco products between France and the UK, with adverse repercussions for UK suppliers and tax collection for the Exchequer, has concentrated minds on finding a solution to the taxation disparities. The brewing industry relies on economies of scale in both production and distribution to be successful. The removal of trade barriers, with the chance to capitalize on economies of scale, is helping companies, especially those operating within small domestic markets. Both Heineken in the Netherlands and Carlsberg in Denmark have been obliged to internationalize as their own domestic markets are too small to provide sufficient scope for economies of scale for desirable growth. Expansion through joint venture, acquisitions and mergers, together with licensing and strategic alliance, has enabled an extension of brand franchising and complementary brands. 2.1.3 Social Provision of environmentally friendly packaging: In Germany and Denmark drinks require returnable bottles for re-cycling and, since 1995, at least 65% of packaging has had to be re-usable. In Denmark cans are banned for in-country production, although, due to European Union (EU) competition rules, import exemptions allow high imports of canned beer, from Germany in particular. These regulations incur short-term increases in the costs of packaging and distribution as new technology is introduced to meet the requirements. 2.1.4 Technological Heineken use their technology to keep detailed documents of shipping, in their warehouses to make the beer more efficiently and for shipping purposes. 2.2 SEGMENTATION TARGETING POSITIONING proceeds to segment the market, select the appropriate market target, and develop the offers value positioning. The formula segmentation, targeting, positioning (STP) is the essence of strategic marketing. (Kotler, 1994, p. 93) . The process of market segmentation can also consist of the selection of those segments for which a firm might be particularly well suited to serve by having competitive advantages relative to competitors in the segment, reducing the cost of adaptation in order to gain a niche. This application of market segmentation serves the purpose of developing competitive scope, which can have a powerful effect on competitive advantage because it shapes the configuration of the value chain. (Porter, 1985, p. 53). Segmentation is the process of identifying sets of consumers. These sets must be homogeneous, distinct, attractive and reachable. It use demographic (i.e. age), geographic (i.e. ZIP codes), and psychographic (i.e. attitudes) information to describe and separate groups. Segmentation requires the marketer to look at pools of potential customers from multiple angles to consider their areas of focus. Heineken focuses on youth in different locations. Targeting a specific segment or segments requires the evaluation of multiple segments. Choices can be hard to make and sometimes seem arbitrary. To aid the marketer, metrics for the most important criteria should be associated with each potential segment. In the end, the segment(s) with the greatest potential should be selected. Europes largest brewer, Heineken NV, is to embark on an acquisition spree and attempt to make its flagship lager brand more appealing to young consumers as increased competition and sluggish sales continue to blight its more mature beer markets. Positioning Gunter and Furnham (1992) prescribe that after selecting target markets the trategist should develop positioning objectives to then develop them into a detailed marketing mix. However, Aaker (1996) recommends developing the positioning objective only after the brand identity and value proposition have been developed. In exploring the latter, it is useful to understand Aakers definition of positioning is the part of the brand identity and value proposition that is to be actively communicated to the target audience and that demonstrates an advantage over competing brands. Kotler (1994) refers to it as the unique selling proposition. Heineken is the worlds most valuable International premium beer brand Heineken hopes to consolidate its position within the high growth Romanian beer and mineral water market by acquiring Transylvania based brewer bere mures for an as yet undisclosed fee. As of 2009, Heineken owns over 119 breweries in more than 65 countries and employs approximately 54,004 people 3.0 Global Brand Development: Since stage of beer market development in each country is different strategy should be used. In embryonic markets (Africa, Eastern Europe) pushing strategy is suitable. In growing markets (Italy, Spain, Japan) both pushing and pulling strategies are agreeable. In mature markets (North and Central Europe, Australia,USA) pulling strategy is the best. Global positioning target can be achieved through creative marketing communication. Heineken should develop a number of high-profile, quality television campaigns with universal appeal, featuring high profile, contemporary celebrities. However, within the marketing mix, there will always be a requirement for locally driven campaigns and support. By connecting to local situations, consumer will develop a greater emotional tie to the company. The term marketing mix refers to the primary elements that must be attended to in order to properly market a product or service. Also known as The 4 Ps of Marketing, the marketing mix is a very useful, if a bit general, guideline for understanding the fundamentals of what makes a good marketing campaign. Product product refers to products or services. The product or service that offer the needs to meet a specific, existing market demand. Or, product should be able to create a market niche through building a strong brand. Heineken maintains it beer quality and special taste Price: The price that set for Heineken product or service plays a large role in its marketability. Though Heineken has many competitors Heineken maintains its quality and price. It changes it price according to the situation and location. Place: Heineken has huge marketing in Ireland and Netherlands. Compare to other brands Heineken is not available in all retails stores frequently. Promotion: Heineken has quickly recognised that consumers are increasing seeking value and positivity in the current recessionary environment. 3.1 Market entry Heineken has a pragmatic view taking a cautious approach to entering new markets. While it encourages organic growth, it has expanded by using a combination of direct export, licensing, joint venture, strategic alliance and acquisition. While it exports its premium Heineken brand from its plant in Amsterdam in the Netherlands, it is also involved in local regional production. A typical entry strategy has been to begin by exporting using intermediaries such as local distributors, and then to develop licensing production agreements through joint ventures with local brewers. Ultimately, the goal is to acquire full ownership and control of the local production wherever possible. The Netherlands Heineken has been the dominant market leader in its home base in the Netherlands having 53% of the market in 1991, well above its competitors Grolsch (15%) and the 15% taken by Interbrews subsidiary Verenigde Brouwerijen. Unfortunately, the Heineken brand market share, 45% in 1980, itself dropped to only 30% in 1991. In response Heineken introduced the Amstel and Buckler brands, the latter being the first non-alcoholic beer available on draft. Uk In the 1960s, when Heineken entered the UK, the beer-drinking public was not familiar with the strong beer being drunk in other European countries. Consequently, it made a licensing arrangement with Whitbread to brew a weaker version of standard Heineken brand (3.6% alcohol by volume (abv) ) that proved popular with lager drinkers. By 1990, about 10% of all lager drunk in the UK carried the Heineken brand. As beer drinkers became increasingly familiar with the continental brands, the Heineken Export Strength (5.0% abv) was introduced which Whitbread also brewed under licence. In 1993, the UK was the second largest market for beer in Europe, consuming 224 pints per head of population, although that level dropped to 218 pints per head in 2002 (Tighe, 2003). The pattern of consumption is different from the rest of Europe with more than 80% being drunk in pubs, many of which are linked, or tied, to breweries. Heinekens route was through access to Whitbreads distribution network through a licensing agreement. Interestingly, these ties were broken in the early 1990s when the Conservative government introduced legislation to increase competition. This obliged Bass to dispose of its 7,500 pubs most of which were expected to become independent small businesses. In practice, most were acquired by Pubmaster which currently owns 8,500 pubs, reflecting the continued concentration of ownership within the brewing distribution network. Ireland In 1993, Guinness and Heineken dominated in Ireland with a combined market share of about 85%. From the 1970s the Heineken brand was produced under licence until Heineken acquired its own production site in 1983. Murphys stout was a particular success story, becoming the number two brand of stout (behind Guinness) in both Ireland and the UK; by 1993 it was also being sold in the US and France. Italy Heineken entered the Italian market in 1960 when it acquired a minority stake in a small brewer. This was extended in 1974 when Heineken and Whitbread each bought a 42% holding in the company, renamed Birra Dreher. By 1980, Heineken was the sole owner of Dreher having acquired Whitbreads 42% share. Mergers with two former Henniger breweries strengthened Dreher so that, by 1993, it had a 25% share of the Italian market behind the market leader Peroni with about 40%. Despite the decline in the Italian beer market being more severe than in other European markets, Dreher maintained its margins although its market share fell. The Heineken brand retained its position, while its Buckler brand benefited from the increasing growth of the non-alcoholic segment. As in other countries, Heineken, in this case through Dreher, increased its control of the distribution network by purchasing a number of drinks wholesalers. In 1991, Heineken began importing its other Heineken brands into Italy to prov ide more effectively for the premium beer segment. Greece In 1965, Heineken entered a joint venture agreement for Athenian Brewery to produce the Amstel brand. By 2002, it had 98.8% ownership and a dominant 70% or so of the Greek market. This enabled it to strengthen its own Heineken and Amstel brands, and to import its associated Dreher and Coors beers. Heineken still dominates the Greek market. France In 1982, Heineken acquired Albra, which had an 8% market share and owned two breweries in France. In 1984, Albra was merged with Brasseries et Glacieres International to form the Sogebra group which in 1993 had 25% of the beer market, challenging the market leader, BSN Kronenbourg (50%). With the successful re-organisation of the Sogebra group, Heinekens fortunes continued to improve. However, the poor economic climate of the early 1990s, together with the increased competition for limited shelf space among retailers, has been challenging. Spain In 1984, as Spain was preparing to join the EU, Heineken purchased 37% of the local El Aguila brewer and increased its holding to a 51% controlling interest by 1993. El Aguila suffered from outdated production techniques and poor branding which necessitated investment in production and some re-structuring with resulting labour redundancies and short-term losses. The Aguila Pilsner brand was positioned for the standard market segment and a new Adlerbrau brand was introduced targeted towards the premium segment; Adlerbrau was then itself replaced by Aguila Master. Spain was a challenging market where many small family breweries operated within a federal infrastructure so hindering the implementation of economies of scale. Nevertheless, the Spanish market was attractive, with beer consumption the third highest in the EU, and increasing from 51 litres per capita in 1978 to 71 litres in 1989. Not surprisingly, by 1991 other companies were intent on acquiring a slice of the market through similar joint venture arrangements. They included Guinness/Carlsberg (Cruzcampo), the French group BSN (Mahou) and San Miguel Philippines (San Miguel). 4.0 Heineken SWOT Analysis Heineken SWOT Analysis company profile is the essential source for top-level company data and information. Heineken SWOT Analysis examines the companys key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy. 4.1 Strengths The taste of Heineken beer is unique. The yeast that is used to make Heineken beer till today is developed in 1886.so the taste uniqueness of it has been there for a hundred years Heineken is the worlds second largest beer manufacturer.They produce 5.6 billionl liters of beer each year. second only to anheuser busch who produce 10 billion ltrs . This gives economics of scale and a platform for futher expansion of their market capitalization. In some markets like U.S.A and Hong Kong the Heineken brand is perceived as a premium brand and has successfully established a brand image. Heineken has owned subsidiaries in Netherland, France and Ireland whereas they held majority stake in 15 other breweries all over the world.Which gives Heineken a global presence. 4.2 Weaknesses Insome countries the brand image of Heineken was too narrow such that the brand was seen appropriate for special occasions only, While in other countries like Latin America the brand is viewed just another imported European beer .In Netherlands It was viewed as a mainstream brand. The company has limited its reach to the European and the Western countries and there still lies a scope for scaling up in countries like India where the beer is just imported and thus making it impossible to penetrate deep down No production base in some area and TV commercials are just aired in larger markets Lack of integrated marketing campaign Lack of worldwide advertising campaign 4.3 Threats Increase in drunk driving laws Competitors increasing market share Mergers and acquisitions of other breweries Other Breweries are becoming much larger than Heinekens Brewery 5.0 Recommendation to achieve the global brand Introduce a number of innovations across liquid, packaging and format that will serve to further endorse international leadership credentials because innovation is the lifeblood of brand domain. Heineken has a strong brand tradition. In order to flourish its  brand reputation  across the world, convince the consumers that the brand is some way superior. Develop a relationship with customers, build  affinity  between brand and customers bysponsoring international rugby tournaments, and world soccer tournament such as -( the Champions Leagues, the UEFA Champions League,  worlds premier club) where target audience of men from all over the world gather in one place. Building the brand  recognition  for long-term  to differentiate the brand Heineken and be sure to add value to the product in order to get the brand loyalty. (For example, Heineken can maintain its good quality or create benefits for society and culture, and provide an emotion to its consumers. 6.0 Strategies Macro analysis Heineken has been able to remain one of the worlds leading consumer and corporate brands for more than 130 years. It confronts directly the challenges in many of our markets to deliver organic profit growth, but also focuses on building the long-term future of our brands and business. 6.1.1 Current strategies Key focus is on driving the growth of our brands and improving our financial performance on ensuring that acquisitions, partnerships and distribution strategies create value. The focus is also on enabling our employees to use their potential and building a true performance based culture. Heineken aims for sustainable growth as a broad market leader and  we aim for segment leadership. In both cases, the Heineken brand plays an important part. We establish broad leadership usually by acquiring strong brands, which are combined into a new, larger company. Offering training to the employees, improving the organization, and introducing new technology then reinforces the positions of the local beers. This results in economies of scale that create a distribution network for both the local beers and Heineken beer. If a market is already in the hands of other brewers, we devote all our energy to developing a premium segment with Heineken beer, and if feasible, specialty beers. The goal of Heineken is to grow the business in a sustainable and consistent manner, while constantly improving profitability. The  four priorities for action include:   To accelerate sustainable top-line growth. To accelerate efficiency and cost reduction. To speed up implementation: we commit to faster decision making and execution.   To focus on those markets where we believe we can win. 6.1.2 Failures in strategies Heineken: Declining sales volumes now should explore new Strategies. An expected drop in revenues for Heineken has been more than cancelled out through cost-cutting measures and a shrewd pricing strategy. While beer volumes have suffered during the recession, this can be seen as the continuation of a more established trend. Plant closures have helped Heineken to reduce costs, but future profits will need to be driven by alternative methods. Heineken has revised its profit forecast for 2009 and now expects low double-digit growth for the year overall. The third largest brewer in the world reported a 4.7% decline in volume sales, but strong cost-cutting measures and a sound pricing strategy have allowed the company to further grow its profits. Beer v olumes have been badly hit by the recession, but this is largely a continuation of a longer and more established trend in established markets. The category has lost significant custom to the wine and spirits segments in recent years, as beer has garnered a particularly unhealthy reputation. Consumers beer preferences were once widely predicted to enjoy Resistance to the recession, but this has not proved to be the case and many consumers have switched to cheaper brands, with notable gains seen in the private-label beer market. Heineken has been able to drive profits through an array of cost-cutting measures. A number of plants were closed after Heinekens purchase of Scottish Newcastle. This acquisition gave the company the largest share of the European beer market, which allowed the undertaking of consolidation through the plant closures. Heineken has also increased prices, which has helped to offset some of the volume declines. Price rises in the beer category have become commonplace, but the company has ensured that its prices remain competitive without compromising the integrity of the brand. The expected results from Heineken demonstrate the possibilities that still exist during a recession. Cost-cutting measures have improved profits and will leave the company in a stronger position during a recovery. However, reducing costs can only fuel profit growth for a finite length of time, and the company must ensure that it continues to grow its business in developing markets while consolidating in the established markets of Europe and the US. 6.1.3 Implementations: The basic strategies of Heineken is to capture the local market. By merging with local firms Heineken has started capturing local market. Merger and acquisitions seems very good at for the present situation but according to servey (Dg internal market and services , 2005). 7.0 Recommendations: Heineken is one of the strongest products in the market and is dedicated to grow and remain independent, made by Heineken International since 1873. From the above repost accomplished that from macro analysis, there are positive conditions in Europe to increase profitability of Heineken. There are number of other steps in marketing plans can improve sale of Heineken. The Heineken brand can be developed through the distinctive characteristics of the marketing communication mix: multiple form of marketing communications are needed to communicated the value benefits of a product or market offering to larger and larger numbers of actual and potential consumers The value benefits of a product or marketing offering is communicated to the target market through three modes: marketing communication mix, mass marketing forms of communication , personal marketing forms of communication Creating strong associations and responses in the consumers mind: creating awareness of the brand, establishing the brand image brand judgments and feeling , and creating strong consumer-brand connect By designing a marketing communication strategy that delivers a consistent message that aims at informing, persuading, and reminding consumers- directly or indirectly about the products and brand for sale in the market segment It should focus on the markets that are in the embryonic stage and also on the developing markets and one of the being India, Heineken still has not penetrated India and the beer that is available in through imports. Company does not have fixed group that looks into marketing communication mix They should go like When in Rome, do as the Romans do that signifies that the communication mix should be different from country to country, and it should be significantly referring to the personalization of the masses representing the target population of a particular. It should keep learning from what happened to other brands that entered into foreign markets and did not do well and they should learn from their failures

Red Bull Analysis | A Multinational Company

Red Bull Analysis | A Multinational Company Executive Summary Red Bull has turned itself into a multinational company that offers a product that enhances the mind and the body. Their method of managing their internal and external situation and circumstances has become an interesting topic for many. Thus we conducted some analysis to look at Red Bulls strategies, and especially the international strategies. The external analysis was a mix of positive and negative observations, for example they have the advantage of the customer loyalty and the production cost, and however, they are in the territory of major players in the beverage industry which put them at risk. Nevertheless, the industry analysis and peer review helped to shed some light on Red Bulls external report, where we can see a substantial growth in the industry and Red Bull headship in the energy drink market. Through the internal analysis we observed that Red Bull leads a proactive approach towards their business by adopting conventional and unconventional methods to expand their horizons. Through the value chain model, we observed that Red Bulls internal marketing and sales strategies have shown ground breaking success on international scale. Moreover, the HR has accomplished to attract the right candidates to achieve the required goals, simple because they are young and know the young target market exactly. The generic strategy analysis of Red Bull has presented Red Bull a differentiated product within its market and a focused-differentiated product within the beverages industry. The norm is that any kind of differentiated products target few selected customers, however, Red Bull did become selective but became massively popular among the youth, and hence, they produce over 1 billion cans each year. The SWOT analysis they was conducted on Red Bull has crystallized some Weaknesses and threats. However, the Strengths and Opportunities outweigh the downside of Red Bull; moreover, the Weaknesses and Threats that Red Bull faces can easily be managed and fixed by Red Bull. We can safely conclude that Red Bull has adopted the right target market and the right method to communicate with the target market. More interestingly, we can see that Red Bull has adopted a product and especially a marketing strategy that can easily be copied to different counties and culture. In other words, it has spoken the language of the youth. History Background History A red cape is not always necessary to attract a bull towards you; nowadays it has become available in a can in the hypermarket, supermarket, grocery and the club near you. This all has become possible thanks to a visionary man called Dietrich Mateschitz, who is the discoverer, modifier, and introducer of the internationally famous drink, Red Bull. It all started in Hong Kong, in 1982, when Mateschitz was at the hotel bar sipping a famous local health tonic. While he was drinking he had a vision of marketing an Asian drink in the western countries. About two years from the vision, the Austrian Mateschitz teamed up with a Thai business man called Chaleo Yoovidhya to produce this product. Together they fiddled with the product, to take out the syrup nature of the product and make it fizzy. Canned in a silver and blue container, with a brand the shows two red bulls going head-to-head against each other, hence the brand was named Red Bull. (Red Bull Founder Rides Wave of Success) In 1987, the product was then taken to Austria where it had its first groundbreaking success in no time. In started going international in 1992, when they entered Hungary. Red Bull is currently active in over 100 countries, energizing the population and creating competition as they go along. One source mentioned that there are over 150 energy drink brands, however, all inferior to the mighty Red Bull (A REFRESHED CREW IS AN EFFICIENT CREW). With over 1 billion cans sold each year, Red Bull controls 70% of the worlds market share of energy drinks. Background Red Bull became strong when they created a high quality drink that is only made in Austria. Furthermore, all of its ingredients are synthetically made in pharmaceutical companies to grantee high quality and safety. Moreover, due to the ingredients of the product, it is said that Red bull (Red Bull FAQ): Improves performance Improves concentration and reaction speed Improves vigilance Improves emotional status Stimulates metabolism However, the main reason for the success of Red Bull is in its advertising style. Red Bull tends to spend very little on conventional or traditional marketing tools, like TV and Print ads. Their marketing strategy is usually out of the box and creative. Red Bull tends to be more active in sponsoring extreme spots and giving away samples in local events. Due to the fact that Mateschitz has been involved in Formula One racing for more than a decade, he used the events to draw attention to his brand. In addition, he sponsored the World Stunt Awards, an annual fund-raiser to help injured stunt workers (Red Bull Founder Rides Wave of Success). Moreover, some observers say that Red Bull uses the anti-branding method of advertising, where they broke the usual method of marketing and branding. Actually what they did was use the buzz marketing strategy or better known as word of mouth. With this strategy, they associated their brand with the youth culture and extreme and adventure-related spo rts, such as motor sports, mountain biking, snowboarding and dance music. Thus they targeted their brand directly to people from Generation Y, the so-called millennials: people born after 1981 who were believed to be cynical of traditional marketing strategies (A Look at a Key Feature of Red Bulls Business). The Buzz over Red Bull among the youth and their underground attitude has created Red Bulls reputation as the drink within that community. That is why Red Bull continues to use Viral marketing internationally, where the company would rather restrict the supply of Red Bull and not advertise it, expecting that growing numbers of target consumers to catch the bug and its reputation would spreads. Through this strategy, Red Bull has successfully captured 70% of the à ¢Ã¢â‚¬Å¡Ã‚ ¤1.6 billion market (A Look at a Key Feature of Red Bulls Business). External Analysis Porter Five Force Analysis The external analysis is one of the most important steps that a company should take to achieve to its goals and objectives. Moreover, for taking this step we should be aware of the essence of formulating competitive strategy which is related to company and its external environment. Also, we know that the relevant environment is very broad; encompassing social as well as economic forces, the key aspect of the firms environment is the industry or industries in which it competes. In addition, taking care of industry structure which has a strong influence in determining the competitive rules is very important because it includes the game as well as the strategies potentially available to the firm. Forces outside the industry are significant primarily in a relative sense; since outside forces usually affect all firms in the industry, the key is found in the differing abilities of firms to deal with them. Michael porter has offered a unique framework for make an easy way to analyze. Michae l Porters framework for industry analysis is described in his book Competitive Strategy (1980). In this book Porter claims that there are essentially five forces which determine the underlying structure of an industry. Rivalry among existing competitors, buyers, suppliers, potential entrants into the business and Threat of substitute products are those five forces which can have positive or negative effects on industry structure by making the industry more or less competitive. Potential Entrants In this case the potential competitors of red bull are soft drinks companies, which can produce energy drink with out adding bubbles. If the barriers of entry are high, it is difficult for potential competitors to enter the market. Three main sources of barriers to new entry: brand loyalty, absolute cost advantages, and economies of scale. Brand loyalty Due to the done research, innovation in creating new energy drinks, proper and profession advertisement, holding many special events and sponsorships, and having high quality for its products makes Red Bull as well known brand with a strong brand loyalty which is a barrier for any new entrant to enter the energy drink industry to compete with it. Cost advantage According to the Michael Porter, normally cost disadvantage is a big barrier for companies to enter an industry as new entrants because it can be cost advantage for existing companies in that industry. Also, companies with the help of cost advantages can compete and beat their competitors very easily because usually it is difficult for new entrants to match their companies with the lower cost structure. Therefore, Red Bull because of Red Bulls superior production and operation processes, and their experience in the energy drink industry, and control of its inputs according to their experience in producing red bull drinks, benefit the cost advantages with keeping its quality in the high level. Although there are many energy drinks existing in the industry with the lower price rather than Red Bull, as quality aspect they have not cost advantages both in quality and price, so Red Bull is steps ahead from its competitors in this case. Customer switching cost In food and beverage industry there is no switching cost for costumers with considering the level of quality, therefore it can be considered as threat for existing companies in this industry. In this case, Red Bull is not exceptional, so they need to keep their quality at the same level to not loosing their market share by coming new entrants because it is real threat for them. Government regulations One of big issues and always concerns for companies which like to go internationally is government regulation, also, in this case some Europe countries have problem with selling Red Bull and have tried to ban it. They claim that Red Bull was the cause of death of people in those countries. France, Belgium, and Sweden ban using the mixture of Red Bull and alcohol. So, it can be a threat for them in taking the market share and having a bad image for their brand. . (French Ban on Red Bull (drink) Upheld By European Court) Intensity of Rivalry Rivalry in some industries is characterized by such phrases as warlike, bitter, or cutthroat, whereas in other industries it is termed polite or gentlemanly. Energy drink industry has an intense rivalry because of a number of interacting structural factors: Industry competitive structure Due to the competition in the energy drink market, Red Bull focuses on non-price competitive weapon like offering exhilarating events, high quality products and sponsorship. In contrast with other competitors Red Bull attract more costumers to its company by growing in 45%marketshare. Accordingly Red Bull has a major influence on its competitors performance in the industry because Red Bull is one of the pioneers in energy drink industry and many companies try to obey and consider Red Bull as benchmark. Industry demand In the energy drink industry, because of the various proper advertisements to encourage people to use and drink energy drinks (giving the image that people can fly) the demand for drinks is increasing. Thus, this is a good point for the company because there are lots of opportunities for every company to fill the current demand and rivalry tend to reduce in the industry, also there is space for everyone to jump in enter the industry (growing stage), and the profit of the company is going to increase which is a goal that every company is seeking it. Buyers Having strong and stable costumers are suppliers and producers concerns, producers like to have costumers with large quantity level of ordering and stable financial status basically in energy drink industry especially Red Bull costumers (buyers) are wholesalers and big retailers. These buyers buy the energy drinks through the company or its representatives, and resell them to supermarket, bars, restaurants and end users. Red Bull faces buyers with high level of bargaining power, and it is real risk for Red Bull. Main reasons for this high bargaining power of buyers in this case are; the switching costs in the energy drink industry are very low. So, Red Bull buyers can switch from Red Bull to other energy drink companies which produce it with lower prices without any difficulty. Also, in most cases energy drink buyers (retailers and wholesalers) purchase products in large quantities, and it is obvious that the more buying in quantity, the more bargaining power the buyer has. So they c an use their power to reduce the cost of energy drinks. Suppliers The bargaining power of suppliers is the same story like bargaining power of buyers but from other side. Red Bull company has both kind of suppliers as bargaining power, some very strong and others weak, so they can balance between them. For instance, the supplier of Glucuronolactone is Glaxo Smithkline Company. Red Bull energy drink buys their Glucurnopolacton inputs from this company. So the bargaining power of this supplier is very high on Red Bull. But the other ingredients are assembled from several small suppliers, and Red Bull has the bargaining power on them. Also, Red Bull has many channels and substitutes suppliers for its normal raw materials, so they can switch from any supplier to cheaper and more flexible one. Substitutes All producers always carry the concern of substitute products for their products and always looking for ways to protect and survive themselves from this phenomenon. Energy drink industry isnt an exception, so players in this industry always try to keep level of quality high, convenience price and other thing which may make costumers more satisfy. Coffee industry can be a threat for energy drinks because of the existing caffeine in coffee and it can be a powerful potential product substitute for energy drink. Therefore, Red bull must take care of its pricing strategy and product quality to keep its costumers and satisfy them more day by day which they were successful due to reports not only Red Bull could protect its products against other substitutes but also, they have increased in their market share in US market by 45% . Industry Analysis and Peer Review Industry Characteristics Beverage industry is divided into many categories such as alcoholic vs. non alcoholic, (hard vs. soft drinks) and within soft drinks still there is other segmentation such as carbonated soft drink (CSD) and non carbonated soft drink. Carbonated Energy Drinks account for less than half of the total volume. This figure is heavily skewed however by the popularity of still brands in Asia (Canadean Press release) According to Beverage Digest, in 2004 the U.S. non-alcoholic refreshment market totaled 14 billion cases (192-oz). Carbonated soft drinks made up 73.1% of the total with non-carbonated products comprising 13.7% and packaged bottled water accounting for 13.2%. Americans spent roughly $92.9 billion annually on refreshment beverages. Energy drink is a relatively new product introduced in 80s and has been growing noticeably with the market more than doubling in size since 1998 (Canadean Press release). The following chart is evidence of this inevitable growth and the attraction of this growth for drink manufacturer. The industry has been experiencing a significant growth and still growing at the speed that draws the big players in soft like Coca Cola drink to enter to this high margin business. Food and beverage market are critical enough that out of 100 new product development 90 NPD fails. The failure results from a poor interpretation of consumers trend and translation of those to opportunities. Austrian company, Red Bull, as a pioneer trend settler has made its fortune from their unique strategies in advertising, marketing and other products characteristics such as Packaging, Flavor, color and Product claim. Global consumption According to Beverage digest report, Asia is the largest leading market in consumption of energy drinks followed by Western Europe and North America as the second and third markets. Asia has been loosing some of 20% of its market share is past 6 years. However, this decline has been offset by the second and third market mainly due to the steady growth in market of carbonated E.D in North America. North American market is now almost 40 times greater than it was in 1998 Peer Review In North America today more than 200 energy drinks existed in US. According to bevNET.com, after a rigorous marketing research the best energy drinks are AMP by Pepsi Cola, KMX Red by Coca-Cola Company Red Bull by Red Bull North America. Red Bulls market dominance seems assured. No other competitors have either the distribution channels or, more importantly, the posture of rebellious infamy to be considered real threats. Year 2001, in UK energy drinks market 21 new drinks have been introduced that would have force the red bull into a competition. However, red bull can still enjoy being a market leader. In the following table there are representations of top 14 non- alcoholic markets where some of them are in the specific market of the energy drinks. Coca-Cola(Juice, Soft Drinks, Water) ($21bn) Suntory(Water, Soft Drinks) ($4.4bn) Nestle(Coffee, Soft Drinks, Water) ($19bn) Starbucks(Coffee) ($4.0bn) PepsiCo(Juice, Soft Drinks, Water) ($10bn) Sara Lee(Coffee) ($2.7bn) Kraft Foods(Coffee, Powdered Drinks) ($4.6bn) Tchibo(Coffee) ($2.7bn) Unilever(Tea ) ($4.5bn) Red Bull(Energy Drinks) ($1.6bn) Cadbury Schweppes(Soft Drinks) ($4.5bn) Cott Corp(Juice, Soft Drinks) ($1.4bn) Danone(Soft Drinks, Water) ($4.5bn) Ocean Spray Source: http://www.mind-advertising.com/sectors/sector_softdrinks.htm Industry Life Cycle Energy drinks were originally pioneered by Asian companies, but they became popular in Europe the late 80s with the arrival of Red Bull. There are more than 200 energy drinks existed in US market only and this figure is increasing due to the high margin of this business. In 2004, carbonated soft drinks posted the growth of 1% which is unlike its usual trend, case of growing 2% to 4%. Noticeably, this inevitable growth was driven by Diet and Energy drinks. While other carbonated drinks posted volume change of one Digit, brands like Red Bull and Hansen Natural reported the 45% and 56% of positive volume change in 2004. The market, now estimated to be worth $10 million, has been predicted to grow to $300 million or even as much as $2 billion in the next few years. Double digit growth in the market is the main factor contributing to Energy drinks life cycle in its embryonic phase (growth). Since the market is not old enough, the number of players are increasing and even the Coca Cola and Pepsi are the new entrant which add to the well-built assumption of embryonic phase. Brand loyalty and high expectations are still questionable in this stage and its because the consumers are still exposing to new products and new claims. Thus, players are fighting for product feature extension such as low-carbs and sugar free plus new products claims such as improve concentration, reaction time and endurance. After introduction of Red Bull in late 80s, industry went to an introduction phase. By 1998, the size of the industry doubled and still growing with a fast pace following highlighted area in the graph is an approximate stage of the life cycle at the moment. Internal Analysis Value Chain Primary Activity: Inbound outbound logistics Logistical issues at Red Bull in of high importance. Due to the fact that all ingredients in the Red Bull drink is synthetically made by pharmaceutical companies, they make sure that their products are carefully handled to maintain the quality and avoid unnecessary costs. Red Bull always makes sure that they align with premium logistics provider to achieve their strategic goals. Red Bull aims to have web-based visibility on their supply chain, thus they base their logistical activities or selection on: Flexible warehouse network Transportation management capabilities Strong information technology offering With 1,600 employees working for Red Bull world wide (Gulf News, Red Bull plans to set up Dubai plant), Red Bull required those standards as they are experiencing year-after-year of high growth, which make the inventory forecasting and management challenging. That is why logistical issues have become increasingly important, and that is why they choose to outsource the logistics to companies that can comply with their network of multi-client warehouses needs (Red Bull OH Logistics). Interestingly, Red Bull uses small distributors in small regional markets, if those small distributors dont perform up to Red Bulls standards they establish a warehouse and push young people to stuff their vans with Red Bulls product and distribute it every where. This way, the small distributors generally break even within three months and are profitable within six (A Bulls Market The marketing of Red Bull Energy Drink). Primary Activity: Operations There is little information about the operations process of Red Bull. However we will enlighten you with the contents and brief information about the packaging company that Red Bull deals with. The great product which is provided by Red Bull one of its main elements of success. Known for improving performance, improving concentration and reaction speed, improving vigilance, improving emotional status and stimulating metabolism, Red Bulls secret is in its ingredients. The ingredients in each Red Bull drink (250ml) consist of: Taurine (1000mg) Glucuronolacton (600mg) Caffeine (80mg) Niacin (20mg) Vitamin B6 (5mg) Pantothenic Acid (5mg) Vitamin B12 (0.005mg) According to Red Bull, It is a combination of all the ingredients together, which result in Red Bulls benefits (Red Bull, Ingredients).. The packaging process of Red Bull is fully done in Austria. And the supplier of Red Bulls cans is Rexam, and they are considered to be the worlds largest provider of beverage cans. Rexam manufactures different types of cans for different industries, however almost half of their revenues come from Coca-Cola and Pepsi Cola. Moreover, industry estimates present that Rexam gained about $22 million from the sales of Red Bull cans (How Does Red Bull Package Its Product?). Primary Activity: Marketing and Sales: With the control of 70% of the à ¢Ã¢â‚¬Å¡Ã‚ ¤1.6 billion market (about à ¢Ã¢â‚¬Å¡Ã‚ ¤1.12 billion), Red Bull has achieved all of this through intensive unconventional marketing strategies. Targeting young people, mainly the Y-generation, Red Bull has utilized eccentric marketing tools that has extremely effective on the target market. The strategy of sponsoring local activities like the Red Bull music academy in the USA, parachuting in South Africa, Go-Karts in Kuwait, and many more in different countries has achieved its target of attracting its target market which gets excited when viewing such sports. Some of the strategies used for marketing Red Bull include: Using pick-up trucks as mobile displays, painted blue and silver with a giant can of the drink mounted on top of the vehicle. Designed to be eye-catching, these devices were aimed at promoting the red bull brand as youthful and slightly off-the-wall. Cans of the drink were also given out free to people on the street who had been identified as being in need of energy. Red Bull was given to club DJs, empty cans would also be left on tables in hot spots such as trendy bars, clubs and pubs. Secondary Activity: Technology The information about the technology that Red Bull uses was quite scares. However we could safely say that Red Bull little activity done on their RD side because Red Bull does enjoy any sort of economies of scale. Red Bull has only one main product, which is the Red Bull energy drink and recently they introduced the new Red Bull energy drink sugar-free. Hence, the main difference between the original Red Bull drink and the sugar-free drink is that it has 0g of sucrose and 0g of glucose, where the original product has 21.5g of sucrose and 5.25g of glucose. Moreover, each sugar-free drink has only 8 calories (EU)/ 10 calories (USA), yet it does not loose any of its energetic effects (Red Bull, Ingredients). Secondary Activity: Human Recourse Red Bull is famous for practicing what they preach, especially when it comes to recruitment. Due to the fact that Red Bull promotes their product as a Hip and young product, they make sure to recruit staffs that are young, in touch with youth culture, dynamic and innovative. For example, they achieve that by recruiting university students as student brand managers to promote its product among young student groups (What Sort of People Work For Red Bull?). However their recruiting does not happen by Red Bull themselves, but they makes sure that it is implemented by all of the outsourced activities. However, it is known that most of Red Bulls 1,600 employees are marketing experts and are the real movers of the Red Bull drink (Marketing Eye, Red Bull Car). Group Customers and Market Segmentation As it is known any successful company should have a certain customer group. The customers that were targeted by Red Bull were the ones that were looking for excitement, alertness, and concentration depending on the age, status, and lifestyle. Four consumer categories were Red Bulls target under the age of 16-30: students, club people, sport people, and employees. College students were the main target of Red Bull. Since college students look for something that would enhance their concentration on doing their assignments and projects, and staying overnight for studying for exams then Red Bull is the best solution for them. It would improve their concentration in their studying Moreover; Red Bull has used this group to enhance their promotion. According to Biz/ed, throw parties those students were emboldened to market the product in the campuses of the universities as what they call them student brand managers. Those students collect the information and make a report of a market data research to the company. Depending on that strategy and the youth generation (high school and colleges students), Red Bull was able to spread the reputation and the popularity of the drink and concentrating on supplying the product rather than applying the traditional marketing ways of promotion (A Look at a Key Feature of Red Bulls Business). The second category of Red Bull customers are the night club people, since the drink has some substances that would increase the persons emotional status. Moreover, Red Bull is offered in the nightclubs depending on the cultural background. For example, nightclubs in Dubai offer Red Bull for the people who do not drink alcohol like the Muslims, which made it a major substitute for alcohol to that group. However, Red Bull is still individually mixed with alcohol to create both the Red Bull highness and the alcohol sensation. Furthermore, Red Bull has also made music events for those groups of customers like the Red Bull Music Academy in 2005 in Seattle, Washington in the United States. (Red Bull Music Academy 2005) For the physical exertion that the drink offers, Red Bull has also promoted the product for the sport people. Among those people, there are the athletes, the racing drivers, the airborne-sport people, water-sport people, the bikers, the skateboarders, and the skiers. Red Bull highly endorsed this group with many sport festivals, and one of the famous one among those is the Red Bull Dolomite Man that took place in Austria in 2005. (Red Bull Dolomite Man) Red Bulls minor groups are the white-collar and the blue-collar workers. Red Bull can support white-collar workers to concentrate more on the job to improve their performance, and it would also help them stay overnight if he or she needed. The drink would also allow the blue-collar workers to work extra hours with out the feeling of exhaustions for the physical exertion that the drink provides. However, Red Bull did not concentrate on this group, so there were no special efforts directed towards them. Within the four groups, there a considerable amount of customers who look for diet product. For that category, Red Bull produced the sugar-free Red Bull to combine the diet customers with rest of the customers that are within the four groups. Business Level and Generic Strategy In the generic strategy Red Bull there are two views, there is a generic strategy from energy drink market perspective, and there is a generic strategy from soft drink market perspective. From the energy drink market perspective, since Red Bull has few economies of scope, the strategy adopted by Red Bull to follow is differentiation. The price of the drink is about 5Dhs in the UAE, which shows the clear differentiation of the product, especially in a market where every body is competing on the same customer segment. According to Biz/ed, Red Bull was able to build a strong brand image through: using Red Bull cars that had big cans on them, giving free cans to people, and providing Red Bull cans to club DJs (A Look at a Key Feature of Red Bulls Business). This strategy made Red Bull to be the market leader of 70% market in the energy drink market. From the soft drink market industry wide perspective Red Bull applies the Focused-differentiation generic strategy. Red Bull has a very good brand image in terms of soft drinks industry. The drink can only maintain this image through focus-differentiating the product by separating their customers according to the demography (age, lifestyle, culture) and the geography, since the industry has many aggressive competitors with a powerful brand image like Coca Cola and Pepsi. SWOT Strengths Industry leadership Throughout the world, Red bull is the leader in the energy drinks market with annual sales of billion dollars. According to the statistics, in year 2003 red bull achieved 80% brand share of the energy drinks market in the UK. Also in the Europe, they produce two-thirds of overall volume in the region. Moreover, Red bull is competing in 13 West European countries and is the main leader in 12 of these and other top 20 brands are having only 17% of share. Since year 2000 (compare to 1990s), it has been a clear shakeout, and fewer new brands are launching new products to the market. Furthermore many products offered by leading drink manufacturers could not compete with Red bull in the market, such as Coca-Colas Burn. (Red Bull SWOT Analysis) Marketing capabilities The successful marketing strategies and consumer awareness of Red bull introduced stimulation drink