Monday, September 30, 2019
Fast Food and Vending Machines Arenââ¬â¢t the Problem Essay
There has been an ongoing debate as to whether schools should be allowed to subsidize and sell fast food in the cafeterias as well as the use of vending machines in schools. I believe that it is when people who prepared the food started to lose sight of proper nutrition and portioning that made the problem. In some schools, vending machines are also part of the money-making machine that helps fund a schools various academic and day to day activities. At the Old Orchard Beach School, it has been reported that: The team implemented Tulane Universityââ¬â¢s CATCH nutrition education curriculum and wrote school vending policies that led to the removal of sodas and junk foods, and replaced them with water, 100% fruit juices, and healthier snack options. The vending machine signage was changed to advertise water instead of soda pop. The vendors were very cooperative in making the changes, and vending revenues have remained the same. Students have also taken an active role by writing their own nutrition policies, such as policies regarding foods served for classroom parties. At the Vista High school, Enid Hohn is the Director of Child Nutrition Services for Vista School District. He has learned to use the ââ¬Å"necessary evilâ⬠to the benefit of his students and the school system. In 2005, with the support of the School Superintendent, he converted the junk vending machine at the Vista High School into a healthy, popular, moneymaking machine for the school. He relates the success story of his pilot project this way: The Principal was not very enthusiastic about this change. He indicated that he had been receiving $600. 00 per month ($7,200. 00 per year) in vending commission and was not interested in losing it. CNS gave him a $10,000. 00 signing bonus to offset his fears. We had difficulty getting students interested in signing up to try all the free food and beverages so we set up sample tables in a room close to the eating area and coerced students to come in and help us. We conducted food testing for three days and involved about 100 students. Once that was done it was important to set up focus groups with various students. Once school started we determined there was a need for additional machines due to the popularity of the Healthy Alternative Vending Program and the volume of items students were purchasing. (qtd. in Healthy Vending: The Vending Challenge paragraph 16) I am arguing that school vending machines should be allowed to sell fast food that fall under specified criteria controlled by the Child Nutrition Services of each school district based on the above information. The school earns the funding they need while staying within the guidelines of proper health and nutrition, while the children nutritious food without knowing it. Certain school districts argue that selling junk food and sodas in vending machines which are easily accessible to students in between classes since these are mostly located in the lobby cause deterioration in the studentââ¬â¢s over all performance. It makes him sluggish, gives him a shorter attention span and prevents him from concentrating. Jeffrey Koplan, vice president of for academic health affairs of Emory University has stated that: Obesity may be a personal issue, but at the same time, families, communities, and corporations all are adversely affected by obesity and all bear responsibility for changing social norms to better promote healthier lifestyles. We recognize that several of our recommendations challenge entrenched aspects of American life and business, but if we are not willing to make some fundamental shifts in our attitudes and actions, obesityââ¬â¢s toll on our nationââ¬â¢s health and well-being will only worsen. (qtd. in National Effort Urgently Needed to Combat Childhood Obesity; Actions Required by Schools, Families, Communities, Industry, and Government paragraph 2. ) In addition, the National Effort Urgently Needed to Combat Childhood Obesity; Actions Required by Schools, Families, Communities, Industry, and Government, report also warned parents and schools alike that: By the time they are 14 years old, 52 percent of boys and 32 percent of girls are drinking three or more eight-ounce servings of soda a day. It would help for us to remember that vending machines donââ¬â¢t stock themselves, we do. This whole argument will prove to be a farce if the parents of the children canââ¬â¢t or wonââ¬â¢t supervise the children or serve a nutritionally balanced meal at home. I refer you once again to the opinion of the National Effort Urgently Needed to Combat Childhood Obesity; Actions Required by Schools, Families, Communities, Industry, and Government report: Parents can exert a profound influence on their children by promoting healthy foods and an active lifestyle from an early age and serving as role models. Parents can encourage their children to develop a healthy, varied diet by introducing new foods in a persistent but non-coercive fashion. Studies show that repeated exposure is most critical during the early years of life and that it can take five to 10 exposures to a new food before a child will accept it. (qtd. in National Effort Urgently Needed to Combat Childhood Obesity; Actions Required by Schools, Families, Communities, Industry, and Government paragraph 5 I therefore, would like to reiterate that, there is no real reason with which to ban junk food and vending machines in schools. Instead, schools should learn to package ââ¬Å"healthyâ⬠junk food. Learn how to use these things in order to promote good health and proper nutrition. The students will certainly be much more receptive of this approach. Works Cited: 1. Enid Hohn, R. D. , Director of Child Nutrition Services. Healthy Vending: The Vending Challenge. November 2006. November 13, 2006 2. National Effort Urgently Needed to Combat Childhood Obesity; Actions Required by Schools, Families, Communities, Industry, and Government. September 30, 2004. November 13, 2006. 3. Schools and School Districts That Have Improved School Food and Beverages and Not Lost Revenue. November 2006. November 13, 2006. 4. Bruce Buchanan. Getting to Wellness. October 2005. November 13, 2006.
Sunday, September 29, 2019
Genetically Modified Foods One World Essay Essay
Did you know that weââ¬â¢ve been eating genetically modified foods for the past 10 years? Itââ¬â¢s in about 70-75% of our nationââ¬â¢s food. Our food supply has greatly improved. Today we are going to find out what are genetically modified foods. Genetically modified foods are foods that have been engineered in the laboratory. They are improved in many ways. In the first part of my speech I will talk about the genetic modification technology in food and agriculture, locating improvements. In the second part I will include a debate about food safety, consumer attitudes and other concerns. Newspapers frequently carry stories about genetically modified food. The biotechnology agricultural age is occurring. Scientists had an idea to make food have better appearance, growth, and taste. In genetic engineering you take the best food available and add the few characters you are interested in so that youââ¬â¢re breeding efficiency is increased. The last century was a time of big changes in genetic engineering. Humanity made huge steps toward creating new life. Experiments with creating human were not successful, but the whole world was watching the experiment with sheep Dooley, which became first cloned animal. It was first such a big succeeded experiment and as a result almost everyone knew the last news about the sheep. However a big achievement was made in modifying new plants and crops. In the 21st century genetically modified products already became a part of our life. Every day new genetic products appear in shops and it becomes harder to find healthy food which does not contain any added chemical components. Apples during the winter time, oranges which become ripe twice faster than their period of ripening and tomato bushes which can survive very cold weather prove that biological world had experienced a lot of changes. Experiments are being made, new plants are being produced for a quite a long period of time, however genetically modified products is one of the hotly debatable topics today. The benefits of gene technology in terms of food production are enormous. The most common genetically engineered crops contain modifications that make the plants resistant to certain diseases and herbicides, or allow them to produce their own pesticides, thereby eliminating or reducing the need to spray. So-called ââ¬Å"Bt corn,â⬠for example, contains a gene resistant to the harmful mycotoxin fungus and herbicide producers, Monsanto have created a strain of soybeans genetically modified to be unaffected by their product Roundup. The soybean farmer therefore can avoid targeting specific weeds and require just one application of a general weed-killer, reducing costs and agricultural waste run-off. Genetically modified crops are also being adapted to grow in salty, dry or frosty environments, contain edible vaccines, have a longer shelf life and be more nutritious. A group of Swiss and German scientists recently developed a strain of GM rice known as ââ¬Ëgolden riceââ¬â¢ due to its altered color. Containing genes that produce a unusually high amount of beta-carotene (vitamin A), this rice could be a solution to the thousands of poor children in Asia who eat little but rice and go blind or die from lack of vitamin A. Public reaction to the use of recombinant DNA in genetic engineering however has been mixed. Sliding US export commodities such as genetically modified soybeans and corn have highlighted hardened public opinion and widespread resistance to biotech crops, especially in the European Union. Concerns about GM foods fall into three categories: economics, environmental hazards and human health risks. The latter two have been the subject of hot debate, both in Australia and overseas. Environmental damage from GM crops can be caused through various channels. One of the main concerns has been the possibility of gene transfer to a non-target species, that is crops engineered for herbicide tolerance and weeds cross-breeding, resulting in the transfer of the herbicide resistance to create ââ¬Ësuper weedsââ¬â¢. In addition, environmentalists fear that transgenic plants may proliferate rapidly, pollinating natural plants in their surroundings eliminating existing species. Further environmental suspicions include those of unintended harm to other organisms and of the reduced effectiveness of pesticides once insects become tolerant to a cropââ¬â¢s natural pesticide. Questions have also been raised on the human impact of genetically modified organisms. Critics of recombinant DNA fear that the pathogenic, or disease-producing organisms used in some recombinant DNA experiments might develop extremely infectious forms that could cause worldwide epidemics. Likewise, the unknown effect of foreign genes introduced into GM food crops in terms of human health also presents a controversial issue. Furthermore, there is a possibility that introducing a gene into a plant may create a new allergen or cause an allergic reaction in susceptible individuals. A proposal to incorporate a gene from Brazil nuts into soybeans in order to increase their nutritional value was abandoned when it was found that the genetically engineered soybeans caused an allergic reaction in people sensitive to Brazil nuts. For these reasons, extensive testing and labeling of GM foods may be required to avoid the possibility of harm to consumers with food allergies. Biotechnology has started to revolutionize food production, with fantastic results. With the world population of 6 billion expected to double in the next 50 years and an adequate food supply becoming a major challenge it will no doubt continue to do so in the future.
Saturday, September 28, 2019
Business Organisational Strategy for Adelaide -
13Cabs is the taxi network service provider that operates in different regions of Australia like Hobart, Adelaide, Sydney, Newcastle and Melbourne. 13Cabs is owned by Cabcharge that operates about 7, 400 taxis throughout Australia (13cabs.com.au. 2017). The service is operated using the cab apps available in various app stores. The cab facility service has chosen the right technology in order to carry out their business they use apps to connect with the customers. The black taxis under this organisation are well known for the service provided by 13 Cabs. 13 Cabs app is the most popular Australian taxi app that has connected the largest fleet of cabs around the different regions of Australia anywhere and anytime (13cabs.com.au. 2017). 13Cabs has also won the Monash Business Awards that shows the efficiency in their business. The customer care service is always available and any smart phone user can easily get access to the service of the taxi apps. The customer service is always available and the company is well known for the service that it provides. The cabs are grouped together by the means of apps and mobile systems in order to create a large segment of taxis. The customers from the segments like Sydney, Melbourne and other regions fall under the customer segments of the cab service (13cabs.com.au. 2017). The channels used for the purpose of connecting with the customers are through the web and any apps available in android or apple phones. The key partners of 13 Cabs are ABC Taxis, Black Cabs Combined Pty Ltd, Yellow Cabs, Maxi Taxis and others (13cabs.com.au. 2017). The cab service maintains and develops the market based on ride sharing activities. The service is available in the inner city and for long journeys as well. The idea is to share the rides of the taxi among the users in order to avoid the higher rates to be paid by the consumers. The key resources are the IT platform or the software that is used for carrying out the business activity (13cabs.com.au. 2017). The idea is to utilise these resources in order to attract more consumers in the market. The company operates in more than 76 locations and has huge fleet of drivers. The cost structure is depended on the employees and the partnership that the company has to maintain with others. The fixed costs include the rent and the utilities and other costs needed for the marketing and partnership activities of the organisation. The current revenue of the company is 121, 000 AUD (13cabs.com.au. 2017). Overall comment on strategic business: The business model used by the organisation is to create a wide network that would attract the maximum number of passengers or customers (Yellowadelaide.com.au. 2017). This would definitely add to the profitability of the business. However, the business model does not consider other aspects of the business like sustainability and competitive measures to improve business activities. Environmental sustainability could be the most challenging issue faced by 13Cabs in the near future. It has been evident that greater approaches have been made towards improving the business activities that it would not cause harm to the environment. There have been no such implications in the business strategies of 13 Cabs that would support sustainability of the business and so this is the upcoming challenge faced by the organisation. The organisation needs to support the sustainability approach in the coming 3-10 years of its business. 13cabs.com.au. (2017).Ã 13 Cabs. [online] ProductReview.com.au. Available at: https://www.productreview.com.au/p/13-cabs.html [Accessed 29 Aug. 2017]. 13cabs.com.au. (2017).Ã 13CABS App @ 13CABS. [online] Available at: https://www.13cabs.com.au/IphoneApp [Accessed 29 Aug. 2017]. 3cabs.com.au. (2017).Ã Taxi Cab Service @ 13CABS. [online] Available at: https://www.13cabs.com.au/ [Accessed 29 Aug. 2017]. Yellowadelaide.com.au. (2017).Ã 13CABS Adelaide. [online] Available at: https://www.yellowadelaide.com.au/ [Accessed 29 Aug. 2017].
Friday, September 27, 2019
What will be the effect on stakeholders of the proposed change in fees Dissertation
What will be the effect on stakeholders of the proposed change in fees and funding for UK undergraduate degrees - Dissertation Example Since the second half of 2010, dramatic changes have occurred in higher education (HE) policies in the United Kingdom (UK). Although recent policy reforms in higher education have not been totally unexpected, their impact has far-reaching consequences to various stakeholders. With the expansion of HE happening in most OECD countries, there has been increasing shift towards relying on fees from students and the increase in contingency student loans (Greenaway and Haynes, 2003). Government has realised the budgetary implications, and looked for solutions in countries like the United States (US) where HE is considered an individual investment. Thus, when Lord Browne pushed forward his ââ¬Ërecommendations for sustainable funding for higher educationââ¬â¢, the coalition government accepted almost all proposals (Secured Loans, UK 2010). Central to these is that the government must cease making HE part of the stateââ¬â¢s welfare (Secured Loans UK, 2010). Trade unions lament that fu nding cuts in HE will have serious impact on the education of the students (BBC, 2010). They predict that as many as 200,000 students will miss out on higher education. Administrators also fear that quality of education will suffer, especially for taught courses in comparison with research-based universities (BBC, 2011). Question one is therefore, with all these points highlighted, why is government pushing for such policy reforms?
Thursday, September 26, 2019
Finance Essay Example | Topics and Well Written Essays - 250 words - 3
Finance - Essay Example ormula also clearly generated risk associated with the investment and thus shows the possible measures to take in a given risk scenario in an investment. This is a financial field which proposes the use and application of psychology based theories which are used to explain the anomalies in the stock market. In this context, the assumption in behavioral finance is the characteristics of market participants and the information structure which systematically influences the investments individual decision in the market outcome. This evident in various stock exchange markets which investors have assumed on making the best decisions. In this area, there are numerous incidents of this phenomenon in the security market which contradicts the market hypothesis in the investorââ¬â¢s rationality. In this context, the behavioral finance hypothesis seems to attempt to cover and replace the investment void. In any investment, this theory states that it is totally impossible to beat the market due to the efficiency of the stock market which makes the existing shares to incorporate and thus reflecting the information which is relevant in accordance to this theory. It is therefore the investor purchases the undervalued stocks or eventually sells out the stock in inflated prices. Efficient Market Hypothesis (EMH) Definition | Investopedia." Investopedia - Educating the world about finance. N.p., n.d. Web. 27 Mar. 2013.
Household Cleaners Lab Report Example | Topics and Well Written Essays - 1750 words
Household Cleaners - Lab Report Example Rub the hand with the cleaning agent for 18 seconds according to step 2. 6. Wash off the cleaning agent with 400ml of distilled water respectively. 7. Dried off with a kitchen cleaning paper. 8. Swab subject's left palm. The area of swabbing should be around 5x5 cm (square in shape). 9. Repeat with subject's right palm using a new swab. 10. Follow the steps as in the graphic (Merck, 2007) and measure the relative light unit by using the luminometer. 11. Record the reading on the luminometer. Result The purpose of the experiment is to determine the most effective agent to clean off germs on hand. Results collected will be tabulated as in table 1. Average and standard deviation are determined. Table 1: Tabulation of result. Cleaning Agent Subject Handwash shampoo Detergent Dish Cleaning Liquid Lemon juice 1 Left Right 2 Left Right 3 Left Right 4 Left Right 5 Left Right 6 Left Right 7 Left Right 8 Left Right 9 Left Right 10 Left Right Average Standard Deviation Then, the average RLU value of this will be plotted on graph as followed (figure 1). The higher relative light units reflect a higher bacteria count on the hands. The almost linear relationship between the relative light units and the total number of counts were proven by Merck (2007). Figure 1: Relative Light Units on hands after washing hands with different cleaning agents. The lemon juice might be the least effective cleaning agents among all cleaning agents. That is because it does not contain any antibacterial properties. But for handwashing shampoo, detergent and dish cleaning liquid, they contain -hydroxy-2',4,4'-trichlorodiphenyl ether (commercially known as triclosan), a common...This compound inhibits fatty acid synthesis in bacteria, thus preventing the reproduction of the bacteria. Fatty acids are needed in the synthesis of bacteria cell membranes. In conclusions, the result is estimated to refute with the hypothesis. Lemon juice is the least effective cleaning agent during handwash. The most effective would be detergent. This is due to the concentration of the active antibacterial compound in the cleaning agent. Lemon juice does not contain any antibacterial compound. It just bring down the pH of the surface and suppress growth of bacteria but do not kill them. Meantime, the RLU values would give a reliable result on the effectiveness of the cleaning agent. Other than using a luminometer, another way would be to determine the number of bacterial growth by microbiological plating method. This methodology however would take more than one day time to obtain the result. The advantage over a luminometer is that it can identify the type of microorganisms found on the hand after washing. This can be done by biochemically testing the colonies grown on the agar plates. Anyhow, the design of this experiment does not reflect the effectiveness of all types of similar products. It only gives a general idea.
Wednesday, September 25, 2019
Corporate finance Assignment Example | Topics and Well Written Essays - 3000 words
Corporate finance - Assignment Example Miller & Modigliani capital structure irrelevance proposition In the year 1958 Franco Modigliani and Merton Miller highlighted that in ââ¬Å"perfect capital marketsâ⬠the capital structure does not have any influence on the value of the firm rendering it irrelevant. The perfect capital markets are not characterised by any market frictions like trading costs, taxes and the information is easily transmitted between the investors and the managers. M&M made a clear distinction between the financial risk and business risk faced by a firm. While the financial risk refers to the choice of risk distribution between the bondholders and shareholders, the business risk refers to the uncertainty of cash flows of the business. It has been pointed out by Miller and Modigliani that changes in leverage does not cast any significant influence on the cash flows generated by the business. Therefore changes in leverage cannot alter the value of the firm. ... The firms as well as individuals can borrow or lend at the risk-free interest rate. The firms employ risky equity and risk-free debt. There exist only corporate taxes i.e. absence of personal income taxes or wealth taxes. They assumed perpetuity of cash flows i.e. assuming the growth rate to be zero (Lee, et al., 2009, p.202). As per M&M model the value of levered firm (VL) is equal to the value of unlevered firm (VU). Suppose there are two companies- Company 1 and Company2. It is assumed that the two companies have identical cash flows and belong to same risk profile. The difference between the two companies is with respect to financing. M&M state that the market value of the two companies is same. Suppose the pay-off of Company 1 in good state is 160 and in bad state is 50. This company is financed only by the equity mode of financing. Similarly the payoff of Company 2 is 160 in good state and 50 in bad state. It is financed by the combination of debt and equity. Suppose the total debt of Company 2 is $60 and its market value is $50; the market value of its equity is $50. Then the value of the Company 2 is- VL = Value of its equity + Value of debt = 50+50 =100 Now if the value of Company 1 is different from Company 2 say 103. Then an arbitrage strategy can be created- An investor can sell Company 1 at 103. He can buy the equity of Company 2 at $50 and debt at $50. The net cash flow is- = 103-100 =3 This process will continue until the Value of Company 1 is equal to Company 2 (Banal-Estanol , 2010). The increase in leverage component raises the risk and return of the shareholders. This can be stated as- RE = RO + (B/S)(RO ââ¬â RD) RE is the return on levered equity RO is return on unlevered equity B is the debt value S is the
Tuesday, September 24, 2019
The Educational autobiography of tiffany merlo Essay
The Educational autobiography of tiffany merlo - Essay Example I am the oldest of three siblings and I was raised in East Flatbush Brooklyn. It is certainly not the most glamorous section of New York, but it is not the worst either. I was raised by my mother who was assisted by her parents. My mother was a stay at home mother. She only has a high school diploma and she received public assistance. My father is a college dropout and was employed by IMB as a computer developer. My parents were divorced and I must admit that my father was mostly absent during my formative years. I suppose that divorce was not so common in those days, and for those women who found themselves divorced, life was not easy. To say that my father has had no influence on my education and future goals is an understatement. In sum, I suppose that one would term us as a working class family. As I noted above, the area in which I was raised was hardly glamorous but it seemed to be home to a myriad of income families. The schools I attended were located in decent urban neighborhoods that consisted of a combination of homes and apartment buildings for low- income families. Life in my household, as in the other working class families in my neighborhood did not revolve around long verbal discussions. We were taught humility and obedience. Conversation with my mother and grandparents revolved around chores and making sure we minded our manners. I took direction well and was charged with the care of my younger siblings. Failure to adhere to the commandments of my family resulted in penalties that sometimes were physical. (Annette Lareau, 2003 Unequal childhoods , Pg. 107). Despite the lack of cerebral conversation at my dinner table it was always automatically understood that I would excel in my education. My mother and grandparents had high expectations for my siblings and me. I was always expected to complete my homework as soon as I returned home from school, to study and practice hard in preparation for upcoming exams, and to try my level best to receive A's and B's in my course work. I consider myself to be an exceptional student and credit these basic expectations with it. While attending elementary school 219, the classrooms were fully equipped with what seems to be up to date equipment, and the playgrounds had durable swing sets. There was a mural that represented the children of the school painted on the bricks with a whimsical appearance, and the ground was covered in smooth asphalt and cement space for children to run around, engage in creative drawing, play hop scotch, and to jump rope. Most of my teachers were Caucasian females with the exception of Ms. White and Ms. Murray, my African American first and fourth grade teachers and a small amount of male teachers who taught math and science solely. Humble and cooperative, I was an exceptional student that received high grades for my efforts. As adolescent, I found it easy to make new friends and fit into the diversity of my schools. I created my own identity as a student. I was valued a great deal amongst my peers and felt above average. I was very likeable, well mannered, and never was a trouble-making student. The teachers in my school focused on the smart students, or the students who were more engaged in the course work because they either participated more often or knew the answers. The quiet students did not participate often in class and thus, quickly forgotten until report cards are distributed. "In working class schools, work is following the
Monday, September 23, 2019
Trade Barriers Essay Example | Topics and Well Written Essays - 2000 words
Trade Barriers - Essay Example With the fall of imperialism the captains of the industry, working alongside their national governments, evolved a system of reducing tariffs or bringing uniformity in them to trade with their neighbors that offered them better terms with respect to the exchange of goods and services. The aim was economic prosperity through the reduction in costs and higher profits through competitive advantage. This brought about bi-lateral agreements between two nations.à With the expansion of trade between several countries, these agreements involved more countries and this was the birth of Free Trade Areas (FTA). FTAââ¬â¢s are drivers of growth and development.à They make use of country comparative advantages, encourage specialization and division of labor, expand the size of export markets, and promote efficiency and competitive environment within the region.à The oldest FTA was the former European Economic Community (EEC) that was formed by six nations, Belgium, France, Germany, Italy , Luxembourg, and the Netherlands. The intention was to form a designated group of countries that agreed to eliminate tariffs and restrictions on most goods traded between themselves to promote greater economic benefit. When others realized the benefits of this association, they too joined and the EEC expanded and became an economic bloc that negotiated uniformly as one unit with other nations to set quotas and preferences for the benefit of EEC members. It has now expanded to become the European Union (EU) with more things in common besides free trade between its members.à The basic FTA is an agreement between member countries to reduce or eliminate trade barriers and tariffs among them. However, in such cases, the member nation is not bound to have a common external trade policy for non-member countries.à A prime example of this is the North American Free Trade Agreement (NAFTA) comprising of the United States, Canada, and Mexico.
Saturday, September 21, 2019
Natural human caused Disasters Essay Example for Free
Natural human caused Disasters Essay 1. The rigs malfunctioning blowouts preventer ultimately failed, but it was needed only because of human errors. Those errors originated with a team of BP engineers in Houston, such as 1. Fewer barriers to gas flow 2. Fewer centralizers to keep cement even 3. No bond log to check cement integrity 4. Pressure test misinterpreted 5. Mud barrier removed early 6. Blowouts preventer failed. 2. In the months following the Gulf oil disaster, wildlife managers, rescue crews scientists and researchers saw many immediate impacts of the oil impacting wildlife. Oil coated birds feathers, causing birds to lose their buoyancy and the ability to regulate body temperature. Mammals ingested oil causing internal bleeding, sea turtles covered in oil, dead and dying sea coral. 3. Many humans experienced respiratory problems he developed during the cleanup of the BP oil spill. People can be exposed to the chemicals in oil by breathing them, by swallowing them, or by touching them. Previous studies show consistent evidence of acute toxic effects, mainly neurological, ocular, and respiratory, of those living in exposed communities and among clean-up workers. 4. BPs stock fell by 52% in 50 days on the New York Stock Exchange, BP gas stations in the United States, the majority of which the company does not own, reported sales off between 10 and 40% due to backlash against the company. On 5 July 2010, BP reported that its own expenditures on the oil spill had reached $3.12 billion, including the cost of the spill response, containment, relief well drilling, grants to the Gulf states, claims paid, and federal costs. Due to the loss of the market value, BP had dropped from the second to the fourth largest of the four major oil companies by 2013 5. It was a massive spilling the Gulf of Mexico, the largest offshore spill in U.S. history. It was a result of the well blowouts that began with the Deepwater Horizon drilling rig explosion on April 20, 2010, At 9:56 pm, Gas, oil and concrete from the Deepwater Horizon explode up the wellbore onto the deck and then catches fire. The explosion kills 11 platform workers and injured 17 others; another 98 people survive without serious physical injury 6. A massive response ensued to protect beaches, wetlands and estuaries from the spreading oilà utilizing skimmer ships, 7. BP LLP owned the well that blew up, Transocean Ltd owned the rig, and Halliburton Co. conducted the key tests right before the event. 8. Victims of oil spills have few methods available to them for receiving monetary compensation. To recover from any financial losses sustained due to the BP oil spill in 2010 their options are 1) an individual law suit in civil court, 2) a class-action law suit in civil court, or 3) the court approved settlement. BP created a compensation fund, Therefore a $20 billion fund was agreed upon for the Deepwater Horizon Oil Spill. 9. Senator Charles Schumer responded to the continuing Gulf oil leak by proposing new legislative action that would raise the liability BP could face for the disaster 1. 10. In the BP Oil Spill, more than 200 million gallons of crude oil was pumped into the Gulf of Mexico for a total of 87 days, making it the biggest oil spill in U.S. history. Causing it to be a very large geographic issue because of the gallons of oil that were pumped into our ocean.
Friday, September 20, 2019
Qualitative And Quantitative Research Methods Computer Science Essay
Qualitative And Quantitative Research Methods Computer Science Essay Qualitative research is involves using various methods ranging from participant observation, interviews, and action research, to ethnography, document review and grounded theory in order to investigate and explain phenomena of predominantly human sciences. However, qualitative research can also be found in various other disciplines, subject to suitable methodologies. A general shift in orientation of Information Systems (IS) has resulted in an elevated focus on organizational and managerial rather than technological issues. The reorientation also requires qualitative research to enter the discipline of IS, which used to be exclusively relying on quantitative research for testing its theoretical body. This paper is to review and discuss the methods of qualitative research with the aim of identifying their suitability for research in Information Systems. Based on the limitations and benefits of the individual research methods, a framework for applying such methods will be presented to be considered as a vantage point in applying such methods scientifically. Introduction The concept of methodology refers to the principal way of going about doing research or practicing the discipline in its present activities. Consequently, the term research methodology refers to the way research is being conducted within the discipline, and normally this is methodology is confined to the respective scientific discipline. Research methodology refers to all the methods employed specifically when doing research, e.g. the subjects interviewed, the materials used, the methods used to collect data, etc. The aim is to accurately and exhaustingly describe and list all parameters which led to the obtaining of a certain set of data, so that it could be repeated elsewhere and by other researchers. The methodology also specifies the upper and lower limits, the exact circumstances under which the research was conducted (Alavi Carlson, 1992) (Myers, 1997) (Orlikowski Iacono, 2001). The emergence of computer science and the absence of a research tradition like the disciplines of physics, chemistry, or biology led to the predominance of a technical perspective on information systems. Realizing the tremendous social consequences of information systems, computer science and technology on people and society has paved the way for using qualitative research in this discipline. Not surprisingly, researchers such as (Mangan, 2004) have pointed out the increasing occurrence of qualitative research methods in information system research and its related management areas. Discussion The human desire to shape the world and materialise ideas and concepts brought on us many notoriously failing, yet at other times marvellously ingenious pieces of engineering and concepts of grandeur, which is unique to human life as much as we are able to reflect on ourselves and our actions. This paper is to discuss computer science by defining the terms science and scientific method in relation to the Theory of Science. Based on the writings of (Kuhn, 1962) (Carnap, 1994) (Popper, 1999)and (Chalmers, 1999), the relationships between science, research, development and technology is explored. Computer Science has as its object of investigation the computer as a technology, as a tool to structure knowledge and information in and about our world. As much as computer science is based in mathematics and logic, its theoretical and experimental research methods follow that of classical sciences. However, computer science also features those unique methods of modelling and simulation which have drawn and transformed other sciences while impacting tremendously on artistic and commercial fields. In maintaining a close relationship with technology, computer science is subject to a continuous development parallel to modern life, though lacking a scientific tradition of classical sciences. By the time computer science emerged in the late 1940s, it was more of a bringing together of various existing sciences, culminating in various concepts of other sciences (logic, mathematics, physics) to be re-assembled to bring forth a new theory and practice of general abstraction and specific design. Though termed computer science, however, it is not so obvious that the field qualifies as a science in the traditional sense. Still a young discipline, it also started out very differently than for example similar classic Greek sciences such as mathematics and physics. The historical development of computer science brought about an age of dramatically increased communication, which, for one, allowed other sciences to communicate much more effectively than ever before, while at the same time allowed a holistic view of our world to emerge and establish itself amongst most of todays societies. What is commonly referred to as science can be described a systematic observation of phenomena by means of (certain) sets empirical and logical methods in order to understand such phenomena. We consign to a certain understanding of phenomena, once we have a theory which can help us to explain such phenomena why they are what they are, or why we experience them as we do, whether they follow a certain pattern, etc. Traditionally, the scientific enquiry is first and foremost concerned with the physical world, with empirical phenomena which require logical and empirical methods to observe, describe and explain such phenomena. As such, science is divided into several specific sciences in order to cut down on complexities. Natural sciences contain fields such as physics, chemistry, geology, biology, etc., while social sciences refer to psychology, sociology, economics, anthropology, etc. The humanities refer to areas of investigation such as philosophy, history, linguistics, etc., while culture refers to areas such as religion, art, etc. A special class of science is logic and mathematics, in that they are exclusively abstract fields of enquiry with no need to refer to the physical world in any way. What is referred to as science is also a body of knowledge that is more or less organized, and which gives rise and consistency to the agreed logical and empirical methods employed in going about the observation and explanation of phenomena. However, science is also the concrete application of such organized knowledge to the physical world. Science attempts to explain and understand the physical world. It is important to note that science is always an after-the-fact effort in understanding the observed phenomena. Scientific knowledge is not a priori, meaning, it never occurs before the observation. This is different for logic and mathematics, in that knowledge in these fields does not presuppose an observation. In these fields, conclusions are reached by logic, while at the same time logic is the object and field of investigation. Science presupposes an order in the natural world which structures and order everything in the universe, an order which is relatively constant, and which can be discovered in order to gain increased levels of knowledge about the world. In the end, science is an expression of human curiosity and a desire, and ability, to solve problems. Such problem-solving endeavours eventually lead to the building of theories, attempting to unite and unify all our observations, or a subset of observations into rational structures which depict the natural world. As such, theories are nets cast to catch what we call the world: to rationalize, to explain, and to master it. We endeavor to make the mesh ever finer and finer. (Popper, 1999) The Scientific Method There is no single scientific method. While one could define the scientific method as a set of practices which scientists use to answer questions within their specific field of research or investigation, the methods employed can vary significantly. Some of the methods used for scientific enquiry are of logical nature, as they refer to arriving at deductions from certain hypotheses, or as they refer to causal relationships and their logical implications. Other methods are of an empirical quality, in that they refer to making observations, the designing of instruments (e.g. to collect data), or the designing of controlled experiments. However, all and any scientific method employed is subject to the criterion of being replicable and repeatable. Any other person should be able to duplicate the very experimental setup or enquiry, and produce either the same results, or dissimilar results. This is also a strong indicator of scientific methods being impersonal, or put differently, unless another person can duplicate the results of another scientist, this serves as a sign that there are substantial errors in either the design, the methodology, or the interpretation of such results. Scientific methods are used to generate the logical limits or environment within which to generate information, which can serve either as a result of certain questions asked, or as input to questions to be asked. Such methods also serve to establish scientific theories about whatever can be theorised about in the context of the specific research environment. In science, everything is theoretical until substantiated by logical deduction (or induction), empirical proof, or a combination thereof. The scientific method is characterised by the very nature of science, in that it is never absolute, constantly in a state of being changed and reviewed. All findings are negotiated in empirical terms, and this positivist negotiating process is a recursively self-correcting process which roots science exclusively in the empirical paradigm. It should be noted, though, that the scientific method is just that, a method, a set of human practices geared and calibrated towards obtaining knowledge about the world in a certain, exclusively positivist way. Researchers such as (Feyerabend, 2000) et al. maintained that all human epistemological endeavours, and with that all scientific endeavours, do not arise from a vacuum. All human experience and thought are based on prior experience and thought, thus all experimental data is rather theory-contaminated. This bears specifically on computer science, in that the design of experimental equipment has to follow a similar pattern like the scientific method exemplified above in order to maintain a verifiable baseline. Qualitative Research The most common differentiation between various research methods is that of quantitative versus qualitative research methods. Quantitative research is concerned with quantifiable data, objective measures which can be repeated always and everywhere, given that all parameters which could influence the measurement process have been analysed and specified in the research design. This is the predominant research methodology of all natural sciences (Myers, 1997), and includes methods such as e.g. mathematical modeling (also used in computer science), test performance scores, measurements (weighing, counting, etc.), but also context-free survey responses. Qualitative research is about evaluating, measuring, and understanding of social issues (e.g. in sociology) or human problems (e.g. in psychology), as embedded in a social context featuring the influence of subjective opinions, goals, objectives or understandings (Cresswell, 1994). Here, more than often, it matters for example how questions and statements are worded, and how such is understood across various cultures, societies, groups, or individuals. Accordingly, the methods employed range from participant observation to interviews and questionnaires, in short, whatever method is suitable to elucidate the very quality of a situation or condition. The fact that the Information Systems discipline is rooted in the engineering tradition due to its positivist qualities regarding computer science and the activities around designing and building computers, prototyping and modelling have led researchers such as Roger Clarke to indicate that positivist approaches alone are insufficient to gather the interpretive aspects and qualities which often are emergent phenomena when approaching Information Systems from a management perspective (Clarke, 1995). Positivist Information systems research was classified as positivist by researchers (Orlikowski Baroudi, 1991), provided such research provided quantifiable measures of variables, hypothesis testing and formal propositions about a problem, the phenomenon and the sample of the population. Researchers such as (Yin, 2002) and (Marzanah, 2007), on the contrary, have exemplified the applicability of case study research as a valid approach to information system research. Interpretive Notwithstanding the ideals and benefits of a positivist approach to the world, not all phenomena can be accorded for by an empirical approach as practiced in the hard sciences of physics et al. The attempt to understand the complexities of a subjectively experienced but socially constructed reality in which it is important to understand the context within which such processes happen and meaning is imbued on a multitude of processes and relations, has fostered the scientific approach to history and culture, and the embeddedness of human life into such complex systems (Orlikowski Baroudi, 1991). Irrespective of the perspective on such negotiated contexts, qualitative research still aims at maintaining the objectivity of the researcher as he/she attempts to collect data for interpretation. Likewise, the use of qualitative research in the Information Systems discipline is aimed at producing an understanding of the context of the information system, and the process whereby the informatio n system influences and is influenced by the context (Walsham, 1993). Engineering The movement from logic and mathematics to natural science, social sciences, the humanities and culture is an indication that human society developed parallel to human thought as contained in the purely natural sciences concerned only with the natural world. The development of science beyond those natural sciences and logic and mathematics is to show that humans were successfully integrating and re-integrating the then current knowledge to include further areas of interest which do not correlate with the traditional field of investigation of the respective sciences, i.e. humans were repeatedly relating one subject with another, say, the functions of vitamins in the human body with the effects thereof within a social context. The emergence of computer science was possible by the inclusion of mathematics and logic, in the form of the field of Artificial Intelligence (AI), while at the same time drawing on physics, chemistry, biology and psychology. Since its inception in 1936 as a branch of mathematics, computer science has been limiting itself to an exploration of how mathematics can be codified by and into mechanistic explanations and principles, with the earliest computer programs being FORTRAN in 1954 to solve problems in numerical analysis, and LISP in 1958 to solve problems in symbolic processing. Computer science is more of a meta-activity, in that it reflects on the practice of writing software programs or designing computer hardware. More precisely though, computer science is concerned with the design, development and investigation of empirical methodologies and logical concepts that are the basis of the scientific activities of specifying, developing, implementing and analyzing computational systems (Eden, 2007). Qualitative Research Method in Information System IS research has been the study of processes related to the development of IS applications and the effects that IS applications have on people, particularly in formal settings such as organizations. The importance of IS research until now, has led to a number of different research approaches and methods, usually adapted from other disciplines such as sociology, natural sciences, and business studies. Harvard colloquium on qualitative IS research methods and QualIT conference in Griffith University in Brisbane on November 2005 have highlighted qualitative research, as a distinctive research approach. Qualitative research methods were developed in the social sciences to enable researchers to study social and cultural phenomena. Qualitative data sources include observation and participant observation (fieldwork), interviews and questionnaires, documents and texts, and the researchers impressions and reactions. According to Northcutt McCoy (2004), Myers (2006), and Hesse-Biber Levy (200 6), there are four research methods being used by IS researchers. The research methods are the case study research, ethnography, action research, and grounded theory. Case Study Case study research is the most common qualitative method used in information systems (Alavi and Carlson, 1992). Yin (2002) defines the scope of a case study as an empirical inquiry that investigates a contemporary phenomenon within its real-life context, especially when the boundaries between phenomenon and context are not clearly evident. Yin further suggested the following steps techniques for organizing and conducting the case study research. The steps are to determine and define the research questions, to select the cases and determine data gathering and analysis techniques, prepare to collect data, collect data in the field, to evaluate and analyze the data and lastly preparing the report. There are numerous case study research, in the organizational context for the implementation of information systems, to illustrate and investigate theories related to IS and organization. Ethnography This is the research method of anthropology with its emphasis on culture. It is undertaken by observation, interviews and examination of documents. In the research, the researchers observe their collaborators without prejudice or prior assumptions. Ethnography is widely used in the study of information systems in organizations, from the study of the development of information systems (Davies Nielsen, 1992). Ethnography according to Avison and Myers, (1995) is suited to providing information systems researchers with rich insights into the human, social and organizational aspects of information systems development and application. The goal of ethnographic research is to improve our understanding of human thought and action through interpretation of human actions in context. Basic steps recommended as a general framework for an ethnographic study (Rose et al., 1995), used to conduct an ethnographic study. The steps include preparation to understand, familiarize setting goals and access to observe. Field study to establish rapport with managers and users, observe/interview and collect data. Analysis to compile the collected data, quantify data and compile statistics, preparing report and presenting the findings. Randall, D., et al. (1999), explore the issue of legacy through the use of a long-term empirical investigation into how information technology is employed in a major UK bank. The closeness of their investigation into the day-to-day operations of the bank from the perspectives of individual users (using ethnographic techniques) identifies the embedded nature of the technology and the impact of cultural, organizational, and individual employees legacy on organizational and technical change. Action Research Action research has been promoted and practiced as one way to conduct empirical research within Information System discipline. Information system action research (Davidson, 1998) is applied research to develop a solution that is of practical value to the people with whom the researchers are working, and at the same time to develop theoretical knowledge of value to a research community. According to Baskerville, R. (1999), information system research in has led to a number of different research approaches and methods, adapted from other disciplines such as sociology, natural sciences, and business studies and is often identified by its dual goal of both improving the organization participating in the research project, and the AR practitioner is expected to apply intervention on this environment. Action Research methodology was normally chosen as a research methodology as it provides the research with an inside and working view of the research matter. AR study done is characterized by the researcher applying positive intervention to the organization, while collecting field data about the organization and the effects of the intervention. Grounded Theory Grounded theory is a research method that seeks to develop theory that is grounded in data systematically gathered and analyzed. According to Corbin and Strauss (1990), grounded theory is theory discovery methodology that allows the researcher to develop a theoretical account based on concepts, categories and propositions. There are five phases of grounded theory building: research design, data collection, data ordering, data analysis and literature comparison, and each phase were evaluated against four research quality criteria: construct validity, internal validity, external validity and reliability. Orlikowski, (1993) uses grounded theory research in the findings of an empirical study into two organizations experiences with the adoption and use of CASE tools over time. The study characterizes the organizations experiences in terms of processes of incremental or radical organizational change. These findings are used to develop a theoretical framework for conceptualizing the organiz ational issues around the adoption and use of these tools and issues that have been largely missing from contemporary discussions of CASE tools. Singh et al (2005) discussed on the challenge of methodological implication of moving from grounded theory to user requirement in IS design. Results and Discussion Conclusion A research method is a strategy of inquiry to research design and data collection. The choice of research method will influence the way in which the researcher collects data. Specific research methods also imply different skills, assumptions and research practices. According to Benbasat et al (1996), no single research methodology is better that any other methodology, and in order to ensure the quality of information system research, Clarke (1997) listed the following requirements to be present in an IS research: the research method, applied within the scientific, the interpretive or the engineering tradition, the explication of a body of theory, which in most cases needs to reach back into reference disciplines, and also the extension of the theory. This give rise to the following motivation in conducting qualitative research in IS: Spending many hours in the field, collecting extensive data, and trying to gain access, rapport, as to gain an insider perspective in natural setting, and doing exploratory studies, where variables cannot be identified, theories are not available to explain behavior of participants or their population of study, and theories need to be developed. The qualitative research does also present some challenges that the researchers might face in using the method. In grounded theory, the challenges for the researchers are to set aside, as much as possible, theoretical ideas or notions so that the analytic, substantive theory can emerge, the researcher must recognize that this is a systematic approach to research with specific steps in data analysis. The researcher faces the difficulty of determining when categories are saturated or when the theory is sufficiently detailed. The ethnography is challenging to use for the researchers as the researcher needs to have grounding in cultural anthropology, time to collect data is extensive, involving prolonged time in the field, and there is a possibility to be unable to complete the study or be compromised in the study. In case study research, some of the challenges that the researcher must face is that whether to study a single case or multiple cases. The study of more than one case may dilutes the overall due to the lack of depth. In action research methods, lack of agreed criteria for evaluating action research, further complicates the publication review process, and makes this approach a difficult choice for academics. There is also an issue in both ethical and professional problems. Researchers who do not carefully explain their research orientation may mislead clients who are expecting consulting-type performance, creating an ethical breech regarding informed consent. In the field of IS a variety of research methodologies has been explored by researchers for different aspects of research study depending on the research focus and application domain of the researchers. Whatever research method to use, there must be some way of assuring the quality of the data collected, and the correctness of interpretation. There is also the need of a framework to guide the effort, and to clarify such methodological details, as it will provide a set of guidelines for a good IS research as suggested by Checkland (1991) and Lau (1997). A framework in Table 3 is proposed and has been used by Marzanah (2007) to guide the effort, clarify methodological details as the role of the researcher, the process of problem diagnosis, the nature of the intervention, the extent of reflection and learning intended, and whether there is new knowledge to be gained in the research. The action research approach enabled us to understand the interaction of social organization and information systems, by introducing changes into these processes and observing the effects of these changes. The action research approach is proposed due to the value of capturing and explaining what is going on in real organization. By using action research, it enabled us to understand the interaction of social organization and information systems, by introducing changes into these processes and observing the effects of these changes. It serves as a checklist with its criteria and questions to assess the quality of the research. The qualitative research methodology approach is viewed as significant in IS research due to the value of capturing and explaining what is going on in real organization. It enabled us to understand the interaction of social organization and information systems, the processes and observing the effects of these changes brought forward by IS. A research framework inaction research is proposed as guidance for the research activities to be undertaken to ensure the research objectives are met. The framework would guide the research effort and clarify methodological details of the role of the researcher, the process of problem diagnosis, the real world happening in an organization, the extent of reflection and learning intended, and whether there is new knowledge to be gained.
Thursday, September 19, 2019
Art And Mathematics:Escher And Tessellations Essay -- Math Artistic Pa
Art And Mathematics:Escher And Tessellations On first thought, mathematics and art seem to be totally opposite fields of study with absolutely no connections. However, after careful consideration, the great degree of relation between these two subjects is amazing. Mathematics is the central ingredient in many artworks. Through the exploration of many artists and their works, common mathematical themes can be discovered. For instance, the art of tessellations, or tilings, relies on geometry. M.C. Escher used his knowledge of geometry, and mathematics in general, to create his tessellations, some of his most well admired works. It is well known that in the past, Renaissance artists received their training in an atmosphere of artists and mathematicians studying and learning together (Emmer 2). People also suggest that the art of the future will depend on new technologies, computer graphics in particular (Emmer 1). There are many mathematical advantages to using computer graphics. They can help to visualize phenomena and to understand how to solve new problems (Emmer 2). ââ¬Å"The use of ââ¬Ëvisual computersââ¬â¢ gives rise to new challenges for mathematicians. At the same time, computer graphics might in the future be the unifying language between art and scienceâ⬠(Emmer 3). However, one must remember that art is by no means the same as mathematics. ââ¬Å"It employs virtually none of the resources implicit in the term pure mathematics.â⬠Many people object that art has nothing to do with mathematics; that mathematics is unemotional and injurious to art, which is purely a matter of feeling. In The Introduction to the Visual Mind: Art and Mathematics, Max Bill refutes this argument by stati... ...d Mathematics. Ed. Michele Emmer. Cambridge: MIT Press. 5-9. Emmer, Michele. ââ¬Å"Intoduction to the Visual Mind:Art and Mathematics.â⬠The Visual Mind: Art and Mathematics. Ed. Michele Emmer. Cambridge: MIT Press. 1-3. Escher, M.C. Escher on Escher- Exploring the Infinite. New York: Harry N. Abrams, Inc., 1986.whattess.html. ââ¬Å"Math Forum: What is a Tessellation?â⬠Available Online.http://forum.swarthmore.edu/sum95/suzanne/whattess.html.Accessed 10/5/99. ââ¬Å"Maurits Cornelius Escher.â⬠Available Online. http://www-groups.dcs.st-and.ac.uk/~history/Mathematicians/Escher.html. Accessed 10/16/99. â⬠M.C. Escher- Interlocking Shapes and Tessellations.â⬠Available Online. http://www.znet.com/~wchow/escher.htm. Accessed 10/7/99. Schattschneider, Doris. ââ¬Å"The Fascination of Tiling.â⬠The Visual Mind: Art and Mathematics. Ed. Michele Emmer. Cambridge: MIT Press. 157-164.
East Asian Economic Crisis :: essays papers
East Asian Economic Crisis A large economic downturn in East Asia threatens to end its nearly 30 year run of high growth rates. The crisis has caused Asian currencies to fall 50-60%, stock markets to decline 40%, banks to close, and property values to drop. The crisis was brought on by currency devaluations, bad banking practices, high foreign debt,loose government regulation, and corruption. Due to East Asia's large impact on the world economy, the panic in Thailand, Indonesia, Korea, and other Asian countries has prompted other countries to worry about the affect on their own economies and offer aid to the financially troubled nations (Sanger 1). The East Asian crisis has affected almost all of the Asian nations, but the three hardest hit countries are Thailand, Indonesia, and South Korea. The panic began in Thailand in May of 1997 when speculators, worried about Thailand's slowing economy, exces sive debt, and political instability devalued the baht as they fled for market-driven currencies like the American dollar. Indonesia's economy soon fell soon after when the rupiah hit a record low against the U.S. dollar. Indonesia is plagued by more than $70 billion worth of bad debts and a corrupt and inefficient government. Thailand and Indonesia also suffer from being overbuilt during real estate booms that Reven2 were the result of huge influxes of cash by optimistic foreign investors. South Korea faltered under the weight of its huge foreign debt, decreasing exports, and weakening currency (Lochhead 4-5). Other major countries touched by the crisis are Japan, China, Malaysia, and the Philippines. Japan's economy is burdened by $300 billion in bad bank loans and a recession. Chinese banks may carry bad banks loans of up to $1 trillion. The banks lend 66% of China's investment capital to state-run industries that only produce 12% of China's industrial output (Manning 2). Malaysia and the Philippines are both faced with devalued currencies and lowered stock markets (Lochhead 5). The implications of the Asian financial crisis are many. A declining Asian economy will reduce demand for U.S. and other countries' exports. The devalued currencies of East Asia will make Asian imports seen cheap and will lead to increased American imports, thus increasing our trade deficit (Lochhead 2). A worldwide banking emergency could result if the embattled Asian economies failed to pay back their loans to the U.S. and other countries (Duffy 2). If the Asian economies fall further, in a desire to raise cash, they might sell the hundreds of billion dollars of U.S. treasuries they now own, leading to higher interest rates and an American recession (Lacayo 2).
Wednesday, September 18, 2019
Themes of Aldous Huxleys Brave New World :: essays research papers
Aldous Huxleyââ¬â¢s wrote the novel Brave New World in 1931. This dystopia novel is mainly narrated in the third person from the characters Bernard or John the savage, but also comes from the view of Lenina, Watson and Mustapha Mond. The time setting for this novel is referred to A.F. 632 meaning 632 years after the ford production of the Model T car. As for the place setting it takes place in a hatchery that is set in England, however, there is also a scene that takes place in New Mexico where the savage is from. The tone for Brave New World is very juvenile, silly, ironic, and pedantic. Within the novelââ¬â¢s themes there are motifs, recurring structures, contracts, or literary devices that help the themes develop. Pneumatic, ââ¬Å"Fordâ⬠, sex, and Shakespeare all help the themes to develop the plot for this novel that Huxley has written. Brave New World focuses on the use of technology to control a happy, sexual, and stable society. They use technology in the book to create this society from birth to death. In the very begging of the novel the boy students are taking a tour through the hatchery to see how embryos grow and get conditioned. At the end of the book it is this technology that kills the ââ¬Å"Savageâ⬠. Soma, soma is the cure to everything. Nervous, mad, sad, not feeling sexual, just take some soma. It is the cure to all that doesnââ¬â¢t make them happy or feel at ease. In a way the world today uses technology to create a somewhat stable society, but not for a sexual society. The novel also is based on a consumer society that cannot tolerate unhappiness or the truth or what comes next in lifeââ¬â¢s stages. Brave New World goes to any extreme to make the needs of the people satisfied. The Alphas, Betas, Gammas, Deltas, and the Epsilons do not know what diseases, old age, pregnancy, motherhood/fatherhood, or regular life is like, but they do not have to worry about life. The ten controllers do not want their people to have to face what the world would be like if it was not controlled by the technology. To not be able to be a mother/father, get old, or have time alone seems unfair. This is not happiness, it only takes away minor problems in life. To grow as a whole we need to have life experiences, whether it is a bad or good experience, we need them to make us, us.
Tuesday, September 17, 2019
Are cell phone is dangerous Essay
There are billions of people all over the world use cell phones. They use them for many different purposes, some use them for calling, or sending messages, others use may use them for logging into the net and chatting with friends. From my point of view, cell phones are very dangerous as they waste time and money, sometimes they lead to some sort of addiction, and they are dangerous to the human body. First of all, cell phones waste a lot of time and money. There are a lot of people especially teenagers who spend hours talking to their friends on phones which is also a waste of money. I see that talking to friends for hours weakens family ties. I know people who spend half of their salaries on cell phones bills while their children and their homes need this money. In addition, cell phones lead to addiction. I have a friend who suffers from chatting addiction and that`s because she spends most of her time chatting with her friends on Facebook or Yahoo messenger program. cell phones cause aà another kind of addiction which is sending messages addiction, I remember hearing, a woman in Opera Winfrey Show who sends messages even in the bathroom, and sleeps with the mobile in her hands. This woman nearly sends about three hundreds messages monthly or more. Furthermore, cell phones are very dangerous to the human body. Researchers say that cell phones send electric emancipations that cause cancer to the cells of the human body .As well as, they cause severe headache and harm our ears. Therefore, people shouldn`t sleep with their mobiles beside them, and it is better if you switch off your mobile before sleeping. To cut a long story short, cell phones` disadvatages out weigh itsà advantages, I know that they become necessary in our daily schedule, but when it comes to driving it is not necessary.
Monday, September 16, 2019
Zara Fast Fashion
1. Features of Zaraââ¬â¢s business model that affect its operating economics: â⬠¢Zara owns much of its production and most of its stores, while competitors Gap and H&M own all of their stores but outsource all of their production. Benetton, on the other hand, owns all of its production but goes to market through licensing agreements. â⬠¢Zara places more emphasis on backward vertical integration. Production runs are short and inventory is strictly controlled. This is in contrast to industry trends of high volume production. Zara's product cycle time from the design phase to the manufacturing phase is 4 to 5 weeks while the industry average is 6 to 9 months. The short cycle time enables Zara to commit to a bulk of its product much later than its competitors. 85% of Zara's in-house production occurs after the season has started in contrast to 20% in-house production of traditional retailers. â⬠¢Zara's pricing is lower than its competitors, but profit margins are higher du e to direct efficiencies gained from a shortened, vertically integrated, supply chain. At Zara, a high inventory turnover rate results in minimal obsolescence costs, clearance sales or mark downs. Zara estimated 15%-20% of total sales as markdowns/close-outs vs. 30% to 40% for its competitors. This helps to preserve a strong profit margin and bolster market image as a ââ¬Å"must buy nowâ⬠destination. â⬠¢Zara's advertising expenses are minimal (avg. 0. 3% of revenue) compared with 3% to 4% for other specialty retailers. These helps lower expenses and preserve strong profit margins. Zara, in turn, invests more money in renovating its storefronts and buying prime real estate for store locations. At Zara, 75% of display merchandise is turned every 3 to 4 weeks which corresponds to the average time between customer visits. The average Zara shopper visits the chain 17 times a year. In contrast, the competition records an average of 3 to 4 customer visits per year. Zara's image creates a ââ¬Å"sense of urgencyâ⬠and forces loyal customers to check in frequent ly for the latest fashions. 2. Zaraââ¬â¢s Quick Response Capabilities ââ¬â Upstream and Downstream activities: â⬠¢Zara's quick-response capability is based on improving coordination between retail stores and product manufacturers. This coordination allows Zara to respond faster to fashion trends, thus creating a competitive advantage for Zara. Effectively utilizing information technology and vertically-integrated manufacturing facilitates Zara's quick response capability. Upstream Activities: â⬠¢Design Teams continuously track customer preferences via data sent electronically from individual storefronts. Additionally, sales data is sent upstream from the stores to give instant feedback on Zara's new product lines generating replenishment orders for sold product. This instant upstream feedback, coupled with Zara's rapid product development gives Zara a compelling market advantage. â⬠¢Zara sources fabric and finished products from external suppliers using purchasing offices in Europe and Hong Kong. 50% of the fabric remains undyed to facilitate in-season updating via Comditel, a subsidiary of Inditex that manages the dyeing and patterning of unfinished fabric. Delaying production of unfinished fabric allows information flowing upstream to influence Zara's production. 40% of all garments are manufactured internally or by subcontractors located near Zara's headquarters. This 40% represents the most fashionable, time-sensitive garments that Zara considers risky. Zara's local production network facilitates flexibility and risk-taking on fashion trends. Downstream Activities: â⬠¢Zara owns its own distribution center in Arteixo. All merchandise from both internal and external suppliers passes through this distribution center. Shipments occur twice a week to each store. Items move through the center very quickly. For example, a vast majority of items are at the center only a few hours and no item stays at the center for more than three days. â⬠¢On average, Zara spends 0. 3% of its revenue on media advertising, which is focused on opening season and end of season sales. â⬠¢Product cycles through the stores rapidly, with new designs arriving every three weeks. This fast turnover results in a significant reduction of discounted merchandise. â⬠¢Display shelves are sparsely stocked creating a sense of urgency (ââ¬Å"buy nowâ⬠) in the minds of shoppers, resulting in immediate sales. Location is critical for Zara to attract repeat customers. Stores are occasionally relocated in response to ever-shifting popularity of shopping districts and traffic patterns. 3. Why might Zara fail? Zara could fail due to falling into what is known as the ââ¬Å"growth trap. â⬠In the beginning, Zara established itself as selling medium-quality fashion clothing at affordable prices. Zara went on to gain a competitive advantage in the industry by developing a quick response capability while at the same time maintaining low customer pricing. As Zara begins to expand internationally, the potential to lose their competitive advantage increases. For example, in South America, Zara had to present a high-end rather than a mid-market image. This goes against the image of medium quality fashion at affordable prices that Zara had built and maintained since their inception. As Zara continues to grow, their stores may eventually be found on every street corner around the world. As a result, Zara runs the risk that their products may become less unique in the eyes of the consumer. According to the ââ¬Å"growth trap,â⬠efforts to grow can blur uniqueness, create compromises, reduce fit, and ultimately undermine competitive advantage. In the end, Zara runs the risk of becoming an ordinary retail chain as they lose sight of their competitive advantage and become more like every other retail player. In order to maintain their market share, Zara should remember their roots and focus on the excellence of their existing chain with very minimal increases in selling space. Zara Fast Fashion Inditex ââ¬â Zara: Fast fashion Case analysis Company Structure and Goals Overview Zaraââ¬â¢s vision on growth and global strategy -Building up fixed assets -Vertical integration -No advertising, creating premium stores -Fashion follower ââ¬â QR to fashion trends -Strongly customer oriented -Stable growth -Markdowns half the average (15% as supposed to 30% ) -Pricing market based Business model: -Vertical operations and downstream activities -Multi-chain concept -Creative design team -Competitive advantage ââ¬â Sustainable growth As attachment: Porterââ¬â¢s Five forces; Company structure; Financials) Problem Statement Growth challenge ââ¬â 20% per annum expected, 76% of equity value implicit on Inditexââ¬â¢s stock price was based on expectations on future growth. Failure to deliver expected growth results might cause a serious offset in companyââ¬â¢s market capitalization. Room for non-local growth ââ¬â in average a retailer was present in 10 countries while e. g. a pharmaceutical company averaged operations in 125 countries. Problem statement is: In what geographical area(s) should further Zara expansion follow? Should there be another logistics-distribution centre created as increase of operations might cause dis-economies of scale? Should it acquire additional chains given the complexity of managing those and the risk of own-product-replacements? Preserve the margins; (visible threat to the sustainability of Indexââ¬â¢s competitive advantage) Evaluation of the alternative solutions 1. Growth challenge: Notes: not much potential on the local market; -different markets require different positioning -though costs grow as distance grows, prices also change (margins are kept) -50% of all export is to developing countries -Zara shopper visits the store 17 times a year, average is 2-4 times -Creating a climate of scarcity and opportunity in stores Evaluate growth options in different markets: Spain Europe str4 ââ¬â production in North Africa, turkey and East Europe. US ââ¬â production in Mexico and the Caribbean subjected to retailing oercapacity, less fashion-forward than Europe, demands larger sizes and exhibits considerable internal variations Japan ââ¬â no quotas to restrict imports, produced in China. ââ¬â teenage market segment considered as the trendiest in the world Italy ââ¬â fashionable, visit stores frequently and spend more on clothing 2. Change in marketing strategy Current: Three types of entering a market: company owned stores, joint ventures, franchising Strategy is standard across the countries -No adv -One big shop central city (capital) Followed by smaller ones (spreading around the country) -Shop windows used excessively -Products do not differ much from country to country -Model is downstream -No knowledge is shared -From design to stores within 4-5 weeks , industry average 9 months -Due to product testing, failure rate only 1% compared to industry average of 10% 3. Change in pricing strategy Current: Prices vary on the different markets, due to transport costs (all supplied from the base in Galicia) ââ¬â this changes positioning Lower mark-down than industry average Zara: Fast Fashion The Spanish retail chain Zara has unique supply chain management practices that enable it to gain a competitive advantage over other fashion retailers in the industry. Zaraââ¬â¢s rapid response time enables the firm to quickly respond to changing fashions while deliberately under producing products. This strategy, which is supported by competencies in logistic management, design and information systems, allows the company to maintain less inventory and higher profit margins and is a key factor to Zaraââ¬â¢s success. The firm should continue to add value by seeking new opportunities to expand in the retail market and maintain their sustainable growth. Financial Analysis Being aware of a companyââ¬â¢s financial health and profitability of its competitors is highly essential for everyone interested in engaging in business with Inditex. In this part of the paper, through analysis of 4 key ratios and return on invested capital, we are going to discover some of the companyââ¬â¢s drivers of sustained competitive advantage. The 4 key ratios will focus mainly on companyââ¬â¢s liquidity, activity, solvency and profitability, while ROIC will show how well the company manages the capital invested in operations of the business. In order to measure ability of Inditex to meet its short term obligations and to assess liquidity, it is important to calculate current ratio. As shown in exhibits section below, in 2001, Inditedx had 1. 02 million in current assets, while Gap and H&M had 1. 48 and 3. 4 million Euros in current assets for every Euro in short-term debt. This indicates that Inditexââ¬â¢s main competitors demonstrate greater ability to meet current payments of debt; therefore liquidity is not one of the companyââ¬â¢s success drivers. When it comes to comparing companyââ¬â¢s sales to various assets categories it is significant to take a look at the total assets turnover. This ratio indicates how efficiently assets are being used to support sale. From 1999-2001, this ratio increased by 1. 2%; however it was still below industry performance. Currently Inditex is industry leader with total assets turnover of 1. 8. This shows that companyââ¬â¢s recourses are being well managed and that company is able to realize high level of sales from its investments in property, plant and equipment such as manufacturing facilities. Debt to equity ratio is used for solvency evaluation. The main purpose of this ratio is to show companyââ¬â¢s ability to repay long-term creditors. As shown in exhibits section, this ratio decreased from 1999-2001, however, when compared to its rivals, Inditex confirmed to have the best leverage among them. When it comes to companyââ¬â¢s financial flexibility and profitability it is highly essential to calculate Net Profit Margin ratio. This ratio measures how successful a company has been at the business of making profit for each euro earned. As presented in the exhibits section, Inditex was and still is an industry leader with Net Profit Margin ratio of 10. 6% in 2001 and 13. 10% in 2010 which means that company has currently â⠬. 3 of net income for every dollar sale. In addition, according to Inditexââ¬â¢s income statement, we could see that company is delivering higher net income due to its ability to keep operating expenses and COGS much lower than competitors. Furthermore, the company is able to gain sustained competitive advantage by making its own products, efficiently covering lower advertising expenses and maintaining cost-effective number of employees per store. In order for Inditex to maintain continuous growth it is important to keep its profit margins at the high level. Last but not least ROIC (Return on Invested Capital) gives a good judgment on how well a company is using its money to generate returns. Inditex ROIC varied through past couple of years but is currently able to earn around 7% on each euro invested. From the exhibit table below, we could conclude that the company is making wiser investment decisions than its competitors. SCP Analysis Zara competes in a monopolistically competitive industry due to the number of players. No business in this type of industry has total control over the market price and there are no barriers to entry and exit. Because of its monopolistically competitive playing grounds, Zaraââ¬â¢s conduct is to increase its market power by producing demand for its heterogeneous products. Through differentiation and cost leadership, Zara attempts to increase market demand by offering new items weekly while keeping a low inventory, thus making its products unique and attractive to consumers. Because of its backward vertical integration model, Zara creates a strong synergy throughout its production process. Zara has sustained a competitive advantage globally by expanding into new markets and becoming more efficient. In a onopolistically competitive industry, Zara is expected to make profits in the short run but will break even in the long run because demand will decrease as average total costs increase. This means in the long run, a monopolistically competitive firm, such as Zara, will make zero economic profit (AmosWEB, 2001). Porters Five Forces Barriers to Entry: Due to the recent recession and weak economic market, many new players have avoided entering the retail industry. Zara has taken advantage of this opportunity to be the first to enter into many markets across the world before its competitors. With the economic future improving, Zara will be facing more and more competition especially in the United States. Rather than implementing new strategies on how to differentiate itself even more, Zara will need to focus more on creating brand awareness and staying on top in the game. Zara has been the odd ball in the industry with its creative business model but with more and more retailers quickly catching on and critiquing their business model to match the economy changes, Zara faces intense competition. Unlike other retailers, for example Gap and H&M, Zara needs to fight threats around the globe. In the states, Zara competition is intensified with American retailers because many customers still do not know who Zara is or what it offers. In Europe, Zara is like a Macys for us in the states so the brand awareness is there but competition is still also high. Many retailers in Europe offer the same products as Zara, at the same or similar prices; therefore Zara needs to find ways to keep ahead of competition. Bargaining Power of Buyers: Zara is famous for its business model of just in time inventory. No other retailer can produce a garment from scratch and have it hanging in the stores within weeks than Zara. Zara also distributes large number of shipments to its stores around the world twice a week. All merchandise is shipped from Spain and all stores receive shipment on the same days, Monday and Thursday. Zara produces nearly 16,000 new designs a year which is much more than leading competitors. With the constant changing apparel Zara keeps its inventory levels extremely low. Zara customers know that if they see something in the store to buy it right then and there because tomorrow that garment will not be there. US customers are still adapting to this quick turnaround time. With their advanced technology, Zara knows what its customers want and will deliver that to them within 2 weeksââ¬â¢ time. Bargaining Power of Suppliers: Zara manufactures all its clothing in house. This way it has control of the entire process and can make changes more quickly and efficiently when needed. After the garments are cut and ready for assembly, Zara sends out the fabric to different sewing companies to assemble the pieces. There are many competitors that Zara can choose from when deciding where they want its clothes put together which makes the bargaining power weak. Zara also took control of this process by taking over Comditel. Comditel is in charge of nearly the entire garment process. Once the garments are ready and fully assembled they are then stored in Zara's own distribution centers. From the distribution centers they are then shipped around the globe to the thousands of Zara stores. Like many other aspects of Zara's business model, the distribution center moves even more quickly. Once the garments are in the distribution centers, they only stay there for a maximum of 3 days before be sent out to the appropriate destination. Substitutes: Some may describe Zara as a higher end replica of fashion forward items. The items featured on Prada, Chanel, and St. John runways will be replicated in 2 weeks in Zara stores at a much more affordable price but poorer quality. Therefore, there are not many substitutes that customers can use because a majority of the products are out of the price range of many customers. This is a huge benefit for Zara because its customers are willing to pay a much less price for a lesser quality replica. Competition: Zara's direct competitors include H&M, Gap, and Benetton. H&M offers nearly the same products as Zara to its customers, but a much lower quality and price. For those customers who are price sensitive, H&M would be their choice of retailer. The Gap possesses more competition in the states because it has been around longer and has its loyal customer base which is hesitant to shop elsewhere. Even though these retailers give Zara a run for its money, none of them can keep up with Zaraââ¬â¢s business model. Other retailers do not have in house production like Zara and ship their production to other countries for the cheap labor costs. This does save money but it increases time. Time is money so while others are still in production stage, Zara is already selling out of the garment. VRIO Analysis We can use the VRIO framework to determine the competitive potential of Zaraââ¬â¢s resources and capabilities. As we analyze Zaraââ¬â¢s resources and capabilities, it is evident that Zara has built a highly effective, self-reinforcing business system. Three elements in particular ââ¬â (1) extensive vertical integration, (2) the companyââ¬â¢s flat management structure, and (3) exceptional communication and coordination throughout the business system ââ¬â allow Zara to successfully execute its ââ¬Å"Very Quick Fashion Followerâ⬠business model. Each of the three make the grade of being Valuable, Rare, costly for competitors to Imitate, and for which the company has Organized to take advantage. Extensive Vertical Integration: Zara prides itself in its vertical integration, with near full control over its value chain through to the end-user. The company owns or closely controls its manufacturing and distribution facilities, manages its own logistics and transportation, and wherever possible owns its own stores (except for in markets with high risk or barriers to entry). This integration brings value primarily through speed-to-market, as Zara has achieved significantly shorter cycle times than its peers. Full vertical integration is rare in the apparel industry, which typically sees companies foregoing direct involvement in elements of the value chain (e. g. , H&M outsourced all of its production, and Benetton sold the bulk of its production through licensees). It would be extremely costly for a competitor to imitate Zaraââ¬â¢s vertical integration, and even if they were able to do so it is unclear how much or how soon they would profit from it, as much of Zaraââ¬â¢s advantage comes from the degree to which it has developed its integrated organization over many years. Flat Management Structure: While the drive, insight, and guidance provided by founder Amancio Ortega and other top executives have obviously been crucial to the success of Inditex, it is the structure and incentives they have put in place that truly drive Zaraââ¬â¢s exceptionality. Zaraââ¬â¢s management structure is very flat, with autonomy and significant incentive-based compensation for store managers, thus closely aligning their interest with that of the company. This structure adds value to the company through diligent hands-on management at the local level, something so rare that Zaraââ¬â¢s CEO noted that the availability of store managers capable of handling these responsibilities was ââ¬Å"the single most important constraint on the rate of store additions. â⬠The structure would be highly difficult for ompetitors to imitate, as it has been built into the culture and processes of the company over several decades. Zara has certainly proven that it is able to organize around the flat structure model ââ¬â in fact many of the companyââ¬â¢s business processes depend on the communication and input of enabled employees at the edges of the business system. Exceptional Communication and Coordination: From early on, Zara developed a focus on com municating and coordinating activities up and down the value chain and across functions. This capability focused on speeding important information on customer preferences and trends to the store network, and feedback on successful and unsuccessful products back up the line to headquarters. Exceptional communication and coordination are crucial to maximizing the value derived from Zaraââ¬â¢s vertical integration and flat management structure. A look at the more disjointed businesses systems of peers such as The Gap and Benetton demonstrates how rare it is for all of a companyââ¬â¢s capabilities to simultaneously reinforce each other, and how difficult it would be for them to imitate Zara. Zara has successfully organized to coordinate its activities around the fast communication of accurate information ââ¬â about designs, customers, competitors, and micro- and macroeconomic factors ââ¬â both up the line to top management and to the edges of the network where store managers and employees interact with its customers. Each of these three capabilities passes the VRIO test, indicating that they are indeed key competencies for Zara. Four Actions Framework In order to understand how Zara created a new value for both the buyer and the company, we utilize the Blue Ocean 4 Forces Analysis. Starting with what factors Zara raised above standard, we see what is also Zaraââ¬â¢s key resource, the companyââ¬â¢s application of vertical integration. While Zara is involved in both backward and forward integration, what sets it apart is precisely its backward integration into manufacturing. For instance, its competitors Gap and H&M are both practicing forward integration and unlike Zara, outsourcing their production. Zara is also constantly in communication with employees at the edges of its business system such as store managers in order to better identify and track customer preferences and trends. The company encourages increased frequency of customer visits with its short cycle times; customers flock to the stores in order to catch the current fashion trends and product lines. In addition, the company also raised responsibility and accountability for store managers by hiring experienced employees promoted within which the CEO believed was a necessary judgment especially for store additions. Zara increased market saturation leading to better economies of scale thus significantly cutting costs and raising higher awareness and increasing sales. On the other hand, Zara reduced several factors well below the industry standard in order to cut costs and increase customersââ¬â¢ willingness to pay. For instance, the company decreased the failure rate for new products with its intensified product testing program which included store-level personnel in the process. Zara also reduced its cycle time for design which enabled the company to offer the customer new designs in four to five weeks and existing products in two weeks; the industry standard for this process was six months for design and three months for manufacturing. A pioneer in its industry, Zara proudly enjoyed engendering revenues at full price with only 10%-15% of its sales generated at discount prices compared to its European industry at 30%-40%. Lastly, Zara reduced its ad spending below industry standard at 0. 3% of its revenue while its competitors advertised 3%-4%. Although it is relatively unlikely for an apparel company to create factors that its industry has never offered, Zara formed a distinct vision among its competitors. The company was the first within its main rivals to saturate international markets as fast as it did. Zara is a global apparel retailer with a truly international scope. While from 1980ââ¬â¢s to 2011 H&M added eight countries to its international expansion, and Gap five, while Zara was at thirty two countries. In the competitive apparel industry, Zara managed to eliminate what its competitors continuously took for granted. The company focused on a flat management system which allowed capturing trend preferences directly from the customer and applying to mass markets. Eliminating the separation between merchandising and manufacturing was especially beneficial to a fast and productive design team. Strategic Vision Based on our analysis, Inditex has proven to be financially stable and can successfully manage its capital invested in its operations. Therefore, to maintain their sustainable growth and continue to add value, Inditex should use their commercial teamââ¬â¢s micro/macro evaluations to seek new country market opportunities. They should to continue to use one of the three modes of entry; company-owned stores, joint ventures, and franchises, to open additional stores in European countries that have high apparel markets. Italy, Germany and United Kingdom are markets that show promise, especially Italy because of its high per capita spending on apparel. As discussed in our analysis, one of Zaraââ¬â¢s core competencies is its extensive vertical integration, and because the case mentioned a second distribution hub already being built in Zaragoza, Spain, it can support additional European stores without being subject to diseconomies of scale. Increasing the density of Zaraââ¬â¢s store locations in Europe will achieve logistic efficiencies. Zara keeps transportation costs low on the supply side, since most of the production takes place in Spain. Efficient distribution and inventory systems help Zara minimize costs. Demand based production means there is very little inventory in Zaraââ¬â¢s supply chain, which results in lower working capital requirements and lower supplier opportunity costs. Another market that has potential is the United States. With changing consumer behaviors as a result of globalization, there are growth options available for specialty retailers like Zara. For example, Gapââ¬â¢s current ratio of 2. 18 is higher than Zaraââ¬â¢s 1. 71; however Zaraââ¬â¢s 13. 10% net profit margin is preferred over Gapââ¬â¢s 8. 21% (as illustrated in Exhibit A-1). Therefore, as long as Zara can maintain its low production and overhead costs, which are high for its competitors, they should be able to compete in the US market. Inditex should invest in prime locations in major cities such as New York, Chicago and Los Angeles to maintain its positioning strategy. Zara should most likely develop a second central distribution center in America. Zara can strategically locate its central distribution center in or near countries where manufacturing can be done with cheap labor cost, such as Mexico. The close proximity of the distribution center to the American market will decrease logistics and help maintain Zaraââ¬â¢s model of fast fashion and economies of scale. Internet retailing is another market opportunity that Inditex should consider. Zara can reach consumers faster and easier in the countries they are trying to expand into. This method can also help gauge consumer preferences from country to country. The internet retailing market will increase sales revenues and has a very low business risk considering the products are already being produced for the retail stores. Zaraââ¬â¢s online shop would complement its stores, adding an extra level of service for its customers. It would also expand its customer base to reach areas where stores are not located. Patrons can shop from anywhere in the world and at any time of day or night. This essentially means more shoppers and more sales for the business. Based on our analysis, the monopolistically competitive industry structure is not the key factor driving Zaraââ¬â¢s significant performance. Zara has leveraged its key resources to combine low price with product differentiation to create value and succeed in this industry structure. Zara has been able to increase the customerââ¬â¢s willingness to pay by constantly rotating its merchandise and creating a climate of scarcity and opportunity for customers. In conclusion, Zara has the potential for sustainable growth due to its competitive advantage and its ability to increase customerââ¬â¢s willingness to pay while decreasing its opportunity cost. The company keeps its operating income high, has a solid business model with unrivaled synergy and has various opportunities for expansion in the retail industry. Zara must continue to re-invent their image in order to stay fresh in the apparel industry and as long as they maintain their core competencies, they will continue to succeed. Zara Fast Fashion Inditex ââ¬â Zara: Fast fashion Case analysis Company Structure and Goals Overview Zaraââ¬â¢s vision on growth and global strategy -Building up fixed assets -Vertical integration -No advertising, creating premium stores -Fashion follower ââ¬â QR to fashion trends -Strongly customer oriented -Stable growth -Markdowns half the average (15% as supposed to 30% ) -Pricing market based Business model: -Vertical operations and downstream activities -Multi-chain concept -Creative design team -Competitive advantage ââ¬â Sustainable growth As attachment: Porterââ¬â¢s Five forces; Company structure; Financials) Problem Statement Growth challenge ââ¬â 20% per annum expected, 76% of equity value implicit on Inditexââ¬â¢s stock price was based on expectations on future growth. Failure to deliver expected growth results might cause a serious offset in companyââ¬â¢s market capitalization. Room for non-local growth ââ¬â in average a retailer was present in 10 countries while e. g. a pharmaceutical company averaged operations in 125 countries. Problem statement is: In what geographical area(s) should further Zara expansion follow? Should there be another logistics-distribution centre created as increase of operations might cause dis-economies of scale? Should it acquire additional chains given the complexity of managing those and the risk of own-product-replacements? Preserve the margins; (visible threat to the sustainability of Indexââ¬â¢s competitive advantage) Evaluation of the alternative solutions 1. Growth challenge: Notes: not much potential on the local market; -different markets require different positioning -though costs grow as distance grows, prices also change (margins are kept) -50% of all export is to developing countries -Zara shopper visits the store 17 times a year, average is 2-4 times -Creating a climate of scarcity and opportunity in stores Evaluate growth options in different markets: Spain Europe str4 ââ¬â production in North Africa, turkey and East Europe. US ââ¬â production in Mexico and the Caribbean subjected to retailing oercapacity, less fashion-forward than Europe, demands larger sizes and exhibits considerable internal variations Japan ââ¬â no quotas to restrict imports, produced in China. ââ¬â teenage market segment considered as the trendiest in the world Italy ââ¬â fashionable, visit stores frequently and spend more on clothing 2. Change in marketing strategy Current: Three types of entering a market: company owned stores, joint ventures, franchising Strategy is standard across the countries -No adv -One big shop central city (capital) Followed by smaller ones (spreading around the country) -Shop windows used excessively -Products do not differ much from country to country -Model is downstream -No knowledge is shared -From design to stores within 4-5 weeks , industry average 9 months -Due to product testing, failure rate only 1% compared to industry average of 10% 3. Change in pricing strategy Current: Prices vary on the different markets, due to transport costs (all supplied from the base in Galicia) ââ¬â this changes positioning Lower mark-down than industry average
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