My experience in SQM course Assignment Example | Topics and Well Written Essays - 1500 words

My experience in SQM course - Assignment Example I never thought of quality management being used in other departments or sectors including the public sector. However, after getting an opportunity to study quality management, I have come to learn that it is an integral part of every sector and all the departments in an organization or firm. Quality Management, as I have come to know, involves planning the operations and activities of an organization strategically with the aim of satisfying customer needs and achieving the visions of an organization. (Dale, Boaden, & Lascelles, 1994) Quality management is highly structured and detailed and focuses on different aspects to achieve the set goals. Through my study of Total Quality management, I have learnt that leadership is an integral part of quality management .According to Auckland (1993) quality management starts with the top management. The way an organization takes matters of quality is therefore dependent on the leadership structures in an organization. The top management should be comprised of people with personal commitment to matters concerning quality. The leadership of an organization needs to create clear and visible values. The leadership is the role model to the rest of the staff members for proper implementation of quality management strategies. I learn that for quality goals to be achieved there should be close relationship among divisions in an organization. This will help in clearly creating and communicating quality ethics. This understanding has enabled me to appreciate that even at the place where I work; there is need of the human resource department to work together with other sections and provide good leadership to attain the vision of the organization. Through studying of quality management I have been able to understand the role of benchmarking in achieving quality objectives. Before my study understanding of benchmarking was distorted. In Total Quality Management, benchmarking

The Best Financial Software Planning Product Essay Example for Free

The Best Financial Software Planning Product Essay After analyzing various software products and comparing the advantages and disadvantages of them, it is found that the best software for financial planning is mentioned in the Microsoft Money Home website and it is the Microsoft Money Plus. The software helps in managing and planning long-term and short-term financial targets, and helps in the optimization of resources. It has got extensive features that can help a person, individuals or companies manage their portfolio. Microsoft Money Plus Premium calls this efficiency a â€Å"one stop financial management and planning solution. †¦for today and tomorrow† (1) A recent Comparison of Accounting Software done by Wikipedia’s website shows that the software is far much better among the other existing softwares when compared with respective to their licensing options, market focus, features, benefits, its type and the structure. It is the best because there is another article that supports this fact, another review in Tame Your Money Woes page of the PC Magazine, which says that â€Å"Microsoft Money Premium 2007 is an elegant, easily navigable personal-finance management powerhouse, offering more than most consumers need.† (1), another article on Microsoft Money in Wikipedia goes on to say that there are many versions available for U.S., UK, France, Japan, Canada, Germany, Italy and an International English edition (1). This just shows the international appeal the product has and how successful it is all these countries. The pricing is not that high and there are different packages that are catering to different sections of the society, depending on it the customer can adopt for a Microsoft Money Essentials, Microsoft Money Plus Deluxe, Microsoft Money Plus Premium or Microsoft Money Plus Home Business (Microsoft Money Plus Premium 1). There are special offers that are available to customers. There is also opportunity to discuss with the support as to which of the products will be suitable. A trial version also will be given, so that the customer can be sure that the product suites his/her specific requirements. But not many people agree with the above features and advantages they have some objections against it. Yakal page mentions some of the disadvantage, â€Å"Lacks some features Quicken pioneered, such as the ability to attach documents to transactions. Requires Windows Live ID for maximum security and online aggregation.† (1). It is important here to realize that the above mentioned features can still be included in the next upgrade that will follow. For someone who is starting out, this is an ideal solution. Once anyone can master this package then it will be easier to adopt and adapt to the upgrades and enhancements Microsoft will come up in the future. Another review by Wenzel supports this by saying with regard to the requirement of Windows Live.   â€Å"However, were not crazy about needing a Windows Live (formerly Passport) ID to use Microsoft Money 2007 to connect to our financial accounts online, although data transmissions are encrypted, of course.† (1), which means that there is really not much of a requirement of Windows Live and that the package can be successfully used even without it. Wenzel goes on to say that, We like Money 2007s well-laid-out and customizable interface, which by default displays a list of accounts and a spending pie chart on the Home page. Intuitive shortcuts include the ability to double-click a pie slice to bring up a register of expenses for editing. The browser-like layout includes back and forward navigation arrows and various straightforward drop-down menus. You can quickly access specific resources for banking, scheduling bills, creating reports, investing, planning, and taxes. (1)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Some other people have an issue with the software that it does not work on other Operating Systems and it works only on Windows. But you need to remember that Microsoft has been always favoring and supporting its own Operating System, for someone who is used the interface of windows they will understand the enormous amount of ease and advantages behind it when compared to other operating systems. Microsoft has a very efficient support system that will help guide the user to effectively use and exploit all the features. Support is of different types, by email, by chat, phone support, training such as audio and voice training and even personal one – one teaching about the product, all this will help the user to gain confidence in using the product. The other reason why it is one of the best is because it is very simple to use. Not only that, it also is fast to setup, has a very good user interface, which is easily understood. It does not need too much of time to learn package. It covers practically all the areas of finance, accounting, bills payable, receivable, and many more other features. It has a good cash flow management model and above all it is highly customizable. Something that is required for different financial situations, individuals and companies. Besides this, it is also very convenient to carry around in a Pocket PC, a mobile or a smart phone. There are so many versions available that any individual is bound to find the one best suited for him. The package can be readily be used anywhere and everywhere. For anyone who appreciates Microsoft products it is one of the best in financial planning and management when compared to the others. Works Cited â€Å"Microsoft Money Home.† Microsoft. In Microsoft Money Plus.† November 23, 2007, http://www.microsoft.com/money/default.mspx â€Å"Comparison of Accounting Software†. Wikipedia the free Encycolpedia. November 23, 2007, http://en.wikipedia.org/wiki/Comparison_of_accounting_software â€Å"Microsoft Money Plus Premium.† Microsoft. In Microsoft Money Plus Premium.† November 23, 2007, http://www.microsoft.com/money/ProductDetails.aspx?pid=004active_tab=Features Yakal.â€Å"Tame Your Money Woes†. PC Magazine. Microsoft Money Premium 2007 Review Date: July,31, 2006. http://www.pcmag.com/article2/0,1759,1996582,00.asp â€Å"Microsoft Money† Wikipedia the free Encycolpedia. November 23, 2007,   http://en.wikipedia.org/wiki/Microsoft_Money Wenzel. â€Å"Microsoft Money 2007 Review† Cnet Reviews. Microsoft Money 2007 Premium. http://reviews.cnet.com/accounting-and-finance/microsoft-money-2007-premium/4505-6405_7-31982101.html?tag=sub

The Strategic Analysis Of Adolph Coors

The Strategic Analysis Of Adolph Coors Beer is the oldest alcoholic beverage in the world. It has produced in an artisanal setting for thousands of years, dating back to around 3500 BC (History, 2010). As developments in agriculture and technology occurred, beer production shifted to industrial manufacturing. Beer is produced using a process called brewing. The brewing process involves variable amounts of time in which a source of starch, usually hops, is fermented to produce alcohol. The process can produce countless types of beer, with variable concentrations of alcohol, varying flavors, and appearances. These beverages are packaged into either kegs, glass bottles, or aluminum cans. A building or organization dedicated to this process is known as a brewery. The brewing industry today is a global business that is made up of several dominant companies. As of 2010, the key players in the industry are MillerCoors and Anheuser-Busch. Anheuser Busch is the largest brewing company in the United States with 32 breweries globally, 12 of which are located in the United States. In late 2007, SABMiller and Molson Coors Brewing Company joined forces in order to better compete with Anheuser-Busch. These major brewing companies make up the largest segment of the brewing industry. There are also thousands of smaller regional breweries often referred to as microbreweries which make up a second segment. Finally, a very small percentage of homebrews and domestic production occur. This analysis will focus almost exclusively on the segment that consists of the multinational conglomerates such as MillerCoors and Anheuser-Busch. The US beer market produced total revenues of $78.8 billion in 2008. Lager sales account for $28.2 billion of the total (Datamonitor, 2009b). Beer accounts for 52.9% of the alcoholic drink industry in the US, with spirits at 29.4%, and Wine at 17.7% (Datamonitor, 2009a). *A stipulation to this analysis is that it will be based primarily on the Harvard case study Adolph Coors in the Brewing Industry. Outside information will be incorporated where necessary for a complete analysis. *In the absence of specific statistics from past years, current numbers are substituted. *Brevity is highly valued for this analysis, though not at the expense of a thorough analysis. PEST The PEST model is a framework which is used to analyze the macroenvironmental factors that companies within an industry must take into account. This PEST analysis will examine the political, economic, social, and technological factors in relation to the brewing industry. Political and Government regulation There are significant rules governing general alcohol consumption. First, drinking in public places such as streets or parks is prohibited. Second, the minimum age of consumption is 21 years old in the United States. There are also restrictions related to the manufacturing, sale and possession of alcohol. In the United States, the sale of alcoholic beverages is controlled by individual states. Finally, the production of spirits is taxed and requires a permit to operate a plant (TTBGov, 2010). Economic The brewing industry benefits from having commodity-based inputs. There is little variance in the raw materials necessary for the brewing process, as they are mainly agricultural commodities. Price elasticity of demand for beer is low, ensuring steady demand. Social-cultural Consumer preferences are important in the brewing industry. Consumers have varying tastes, and prefer to be able to choose among the varying types of beer. However, alcohol consumption can have adverse affects on human physical health. Beer is high in carbohydrates, and it can be argued that high consumption can cause weight gain, or even liver-disease. There are also benefits of alcohol consumption. The age of the consumer affects the industry. As baby boomers reach the legal drinking age, the number of beer drinkers rose, and also the amount consumed (Ghemawat, 1992). Additionally, more and more Americans drink more beer at home, whereas they had traditionally had it in bars and restaurants (Ghemawat, 1992). Technological Brewing techniques affect the brewing industry heavily. Post WWII developments would allow for less time needed for the aging process. The pasteurization process would allow beer to last up to six months unrefrigerated (Ghemawat, 1992). Capacity and efficiency are highly based on technology of both the brewing, and packaging machinery. Also, the switch from glass bottles to aluminum cans was a large technological development. The technology surrounding television and web marketing have changed, giving firms easier methods for greater exposure, and also shipping and transportation costs fluctuate, affecting value-added (Ghemawat, 1992). III. Porters Five Forces A. Threat of New Entrants (LOW) The following elements will help determine the level of threat from new entrants. 1. Economies of scale Economies of scale are significant for the brewing industry. This represents a high barrier to entry for potential competitors. Large, established firms such as MillerCoors and Anheuser-Busch have enormous brewing capacity, and are able to realize economies of scale that come from mass production and larger contracts. As of 1985, doubling the scale of a brewery cut unit costs by 25% (Ghemawat, 1992). During the rising demand that the industry experienced during the 1960s and 1970s, both Anheuser-Busch and Schlitz, major players at the time, added large breweries to help cope with the demand, and to benefit from economies of scale (Ghemawat, 1992). This allows existing firms to decrease their cost per unit produced. Any new entrant would have to invest a large amount of capital in production facilities. This makes the industry unattractive. 2. Working capital requirements The cost of operating a brewery is significant. A significant implication of the brewing process is that it takes time. A major development in the brewing process after WWII allowed brewers to cut the aging time from 30 days to 20 (Ghemawat, 1992). Even with this decrease, it is still costly not only to facilitate the brewing process, but to maintain locations in which the beer can be aged. This serves as a deterrent for small firms who wish to enter. 3. Proprietary product differences Coors, like many most brewers, has a unique taste associated with its beverages. Little information was available as to the nature of the Coors recipe, however, it would not difficult for any knowledgeable entrant to the industry to imitate the taste of the varying Coors lines. Coors does age its product for 70 days, rather than the industry average of 20-30 (Ghemawat, 1992). Imitation of the Coors brewing process would also be easy, and therefore, threat of entrants is increased. 5. Brand identity Brand identity is important in the brewing industry. For Coors, their marketing expenses as a percentage of sales increased from 3.3% in 1973 to 10% in 1985 (Ghemawat, 1992). This decreases the threat of entrants, as it takes significant investment to establish brand recognition. 4. Absolute Cost Advantages As stated above, Coors and its major competitors can take advantage of economies of scale, which gives lower manufacturing costs, and also cheaper access to raw materials. Coors produces its own malt through long-contracts with farmers (Ghemawat, 1992). These connections are likely exclusive to large firms, and decrease the threat of entrants. 6. Access to distribution Coors products reach the market primarily through retailers and wholesalers. As of 1985, Coors distribution network consisted of 569 wholesalers, and 5 additional Coors-owned wholesalers. Coors also has its own trucking subsidiary, which takes on a large amount of its transportation needs. This decreases the threat of entrants (Ghemawat, 1992). The threat of new entrants is low. The capital requirements for starting a brewery, and quickly achieving the necessary economies of scale is a large barrier. Access to distribution networks takes time, and also contracts to obtain necessary shelf-space to sell product. These factors make the industry unattractive for new entrants. B. Suppliers (LOW) 1. Supplier concentration The main suppliers in the brewing industry consist of malted grain and hops for the fermentation process, and bottles or barrels for storage and transportation. Supplier power is weak because of their size, relative to the brewers, and also because farming operations are numerous (Brewing Industry US). 2. Presence of substitute inputs The presence of substitutes in the brewing industry varies. If aluminum cans are considered a substitute for bottles and barrels, then this factor is an issue. Also, lower quality hops might be substituted for higher quality, more expensive, flavorful hops. 3. Differentiation of inputs Since ingredients required for brewing have little qualitative differentiation, supplier power is lowered. 4. Importance of volume to supplier There are few other uses for hops, especially commercially, than brewing beer. The brewing industry purchases a significant percentage of the total hop production, which diminishes supplier power. However, there are alternative uses for barley, which can be integrated in the brewing process, but isnt as common. This slightly boosts overall supplier power (Brewing Industry US). 5. Impact of inputs on our cost or ability to differentiate Agricultural inputs account for 20-25% of total raw materials costs for major brewers. The remainder is allocated for packaging (Ghemawat, 1992). This increases supplier power, as the price of their product affects the final product. 6. Threat of forward or backward integration Since suppliers are small in comparison to breweries, forward integration is uncommon. However, there is evidence of backwards integration by large brewers. For example, Coors acquired a grain-processing plant as well as other operations to protect itself from price fluctuations (Ghemawat, 1992). 7. Access to labor As of 1985, Coors was the only major brewer that was not unionized (Ghemawat, 1992). The implication is that the brewing industry is unionized. During a strike in 1977, a strike caused Coors to have to shift employees within the company. The production levels were quickly returned to normal, indicating that skilled workers are not necessary (Ghemawat, 1992). Labor supplier power is low. Supplier power is low because of unfavorable supplier concentration. Suppliers of the brewing industry need the brewing industry as there are little other uses for their products, and their products are considered commodities. C. Buyers (MODERATE) 1. Buyer concentration Buyers in this market are highly concentrated. In 1985, 4,500 independent wholesalers existed in the United States (Ghemawat, 1992). Larger buyers are able to negotiate contracts effectively (Datamonitor, 2009b). 2. Buyer switching costs Buyers do not have particularly high switching costs. Many buyers are willing to switch brands based on price and differentiation. The lack of buyer switching costs increases buyer power, making the brewing industry more unattractive (Datamonitor, 2009b). 3. Threat of backward integration There is no indication that buyers are backward integrating, and producing their own product to sell, making the industry more attractive. 4. Pull through Pull through exists in the brewing industry because brand identity is important. Advertising expense as a percentage of sales over time for the brewing industry has been trending upward. As of 1973, advertising expenditures were 3.3% of sales. That amount increased to 10% of sales by 1985 (Ghemawat, 1992). Therefore, the brewing industry has power over the buyers, making it more attractive. 5. Price sensitivity The brewing industry is able to pass cost increases on to the buyer as indicted by the existence of multiple beer segments. End consumers are willing to pay more for quality beer. Brewers are not able to pass on shipping costs however, reducing attractiveness (Ghemawat, 1992). Buyer power is moderate. There are more buyers than firms in this industry, and pull-through from brewers creates power. There are shipping costs and other aspects that the breweries cannot pass on to their customers. D. Substitute Products (MODERATE) Substitute products for beer consist of wine, liquor, as well as imported beer. These products constitute a moderate threat. In 2008, Beer had a 52.9% share of the alcoholic drinks market, with spirits at 29.4%, and wine at 17.7% (Datamonitor2009a). 1. Relative price/performance relationship of substitutes The per-unit-volume price is often affected by alcohol content, which is higher in liquor and spirits. Also, shelf space is more expensive for items such as beer, which must be refrigerated (Datamonitor,2009a). The threat of substitute products is increased. 2. Buyer propensity to substitute Projections for the industry indicate that consumers may switch away from beer to other alcoholic beverages as consumers become more confident and begin spending their discretionary income. Consumers who may normally drink higher priced alcoholic drinks tend to switch to lower priced beer during a recession (Ibisworld, 2010). This effects the buyers of the brewing industry as their demand will fluctuate. The threat of substitute product is moderate because of end-user propensity to switch away from beer when possible financially. Other forms of alcoholic drinks are often more potent, making them a better deal for the consumer, depending on their intentions or desires. E. Rivalry (HIGH) 1. Degree of concentration and balance among competitors The brewing industry is highly concentrated, and unbalanced. In 1985, the six major players in the industry controlled 75% of market share. In 2009, this number had changed to the two major players controlling 79.2% of the market share. Anheuser-Busch controls 50.1%, and MillerCoors, the remaining 29.1%. This heavy rivalry makes the industry unattractive (Ibisworld, 2010). 2. Diversity among competitors Anheuser-Busch and MillerCoors are following similar strategies. Both companies are focusing on promoting their largest brands, expanding their geographic reach, and increasing efficiency (Ibisworld, 2010). This makes the industry unattractive. 3. Industry growth rate (past and projected) The brewing industry is experiencing maturity, growth rates have been slow, and consolidation frequent. From 2010 to 2015, the industry has experienced a -0.3% growth rate. However, it is projected to grow 1.3% by 2025 (Ibisworld, 2010). The industry is unattractive. 4. Fixed costs to value added Fix costs are high and economies of scale are possible in the industry. Value-added trended upward until its high point in 2003 of $25,924.3 million, but has since fallen to just over $23,038 million. The industry is at maturity and rivalry has increased, making the industry unattractive (Ibisworld, 2010). 5. Intermittent overcapacity As of 1985, the 6 major competitors in the brewing industry were operating at an average of 83% capacity. The brewing industry has been plagued with overcapacity issues in the past (Ghemawat, 1992). Rivalry is increased. 6. Product differentiation Firms differentiate their products in this industry through advertising, segmentation, and packaging. Advertising helps firms reach critical thresholds of exposure, while segmentation increases market share (Ghemawat, 1992). Brewers can differentiate their products by segments, but also can use brand, ingredients, and style. The degree of differentiation makes the attractive (Datamonitor, 2009b). 7. Growth of foreign competition To what extent are foreign firms able to penetrate the US market? If there is a growth in foreign firms penetration, this increases rivalry making the industry unattractive. It also shows that US firms are not being globally competitive. 8. Corporate stakes As of 1985, 84% of Coorss revenues came from its brewing division (Ghemawat, 1992). This increases rivalry, making the industry unattractive. 9. Exit barriers Firms in this industry could exit by converting operations to another product, or as shown by the consolidation of the industry, exit through merger or acquisition. Rivalry in this industry is high. Since the brewing industry is so highly concentrated and unbalanced, the major firms in the industry have very similar strategies and compete for similar niches. This makes the overall industry attractiveness low. IV. Conclusion After analysis of the items above, conclusions can be drawn about the brewing industry. A. Critical Success Factors There are a number of critical success factors for this industry: Economies of scale are a necessity to be profitable in the industry. Firms must have production facilities that are large enough to spread the fix costs of production out of millions of barrels of product. These facilities must also have high capacity to deal with demand fluctuations. Second, firms must have strong, differentiated brands that fit into multiple segments. Finally, a strong distribution network is imperative to obtaining sales levels. B. Prognosis Entering into the brewing industry would be a uncertain venture. There are many barriers to entry for small firms such as microbreweries, such as economies of scale and capacity. The brewing industry is projected to contract, but the major players will continue to jockey for market share (Ibisworld, 2010). Competitive forces have contributed to consolidation in the past and likely will in the future, as smaller firms merge with larger ones, in order to better compete in the industry. Part II: Firm Analysis I. Current Situation A. Brief firm history Adolph Coors brewery was founded in Golden, Colorado in 1873. After surviving the prohibition era of the 1920s, Coors would become very successful. After the repeal of Prohibition, Coors sold 90,000 barrels of beer. It also began expansion with its introduction of wholesalers outside of Colorado, in Arizona, and eventually 9 other states. The size of the company would increase exponentially. By 1960, Coors sales volume reached 1.9 million barrels, 7.3 million by 1970, and finally 12.3 million by 1974. In 1975, the Coors family offered non-voting stock to the public (Ghemawat, 1992). More recently, the Adolph Coors Company became the parent company through a merger with Molson, a Canadian brewing giant. Coors would begin numerous ventures and partnerships, most notably, a joint venture with Miller Brewing to form MillerCoors in June of 2008 (Datamonitor: Coors). Today, the company operates 18 breweries and distribution centers over 30 countries. The US segment operates 8 major breweries with a capacity of 85 million barrels annually. The brands sold in the US are Coors, Coors Light, the Blue Moon line, Killians, Keystone, and Molson among others. Molson operates Coorss Canadian operations with 6 breweries. Coors also sells around 9 million barrels in the UK (Datamonitor, 2009c). MillerCoors currently controls 29.1% of market share, behind industry-leader Anheuser-Busch with 50.1%. Coors broad portfolio of over 40 brands allows it to reach a wide range of market segments (Ibisworld, 2010). B. Strategic Posture The current vision of MolsonCoors is to be a top four global brewer in profitability, fueled by our people who are committed to delivering exceptional results and creating extraordinary brands (Molson, 2010). The mission statement was not stated anywhere. The first portion, to be a top four global brewer in profitability is quantifiable through revenue. The last 2 parts are more difficult to measure, though Coors does have a large portfolio of successful brands. II. External Environment (Opportunities and Threats) The findings of the above industry analysis apply specifically to Coors in the following manner: A. General Environmental Factors The issues that affect Coors more heavily are the issues of product differentiation to meet consumer needs, and also the capacity and efficiency factor. The opportunity to market their products more extensively is important to Coors. B. Task Environment The Rivalry factor is currently affecting the level of competitive intensity within the brewing industry. Coors faces strong rivalry from Anheuser-Busch. They currently pursue very similar strategies, making competition strong. Currently Anheuser-Busch controls over 50% of the market share. As they compete for the same markets niches, it will be important for Coors to maintain competitive levels of advertising. Also, Coors has been efficient in their production capacities in the past, but as demand grows, they may need to make changes to keep up. III. Internal Environment (Strengths and Weaknesses) A. Management The Coors board consists of nine members, four of which are members of the Coors family. As of 1985, the Coors family continued to hold all of the voting stock (Ghemawat, 1992). Peter Coors became president of Coors in 1985. There was some dissent between the younger members of the board, including Peter, suggesting that had a differing vision for the direction of the company. It is implied that he thought it was necessary to add effective marketing skills to the manufacturing skills that the company already had (Ghemawat, 1992). B. Marketing Coors operates in every segment except for the low-price popular segment. In1985, Anheuser-Busch had a particularly strong product mix, much as Coors had, though Anheuser-Buschs market share was much larger. The most notable major competitors products were Anheuser-Buschs Budweiser, with 25.8% of market share, and Millers Lite beer, and High Life which together accounted for 17.5% of market share (Ghemawat, 1992). Coors pricing is appropriate for the market. There are no strong indicators that Coors pricing strategy is not competitive. In 1985, domestic producers supplied barrels at $67 each. Distribution is a major issue for Coors. In 1985, all of the major competitors except Coors functioned in all 50 states, but only had a median shipping distance of 300-400 miles. Coors was shipping their product 1,500 miles. Beyond this, their inefficient trucking system added 10-15% additional cost (Ghemawat, 1992). Finally, Coors launch of new products called for an increase in advertising. Coors silver bullet campaign proved successful, as Coors Light had become the 2nd best-selling light beer (Ghemawat, 1992). Coors spends less than the industry average for its promotional efforts. There is also statistical evidence that 90% of the effect of advertising is lost within one year (Ghemawat, 1992). Coors has not marketed itself as heavily as some of its competitors, which puts it at a disadvantage. It likely has much to do with the smaller size of Coors market share. C. Operations/Production Productivity improvement has been extremely important to Coors in its history. In 1985, Coors capacity utilization was above that of both the top players in the industry at 92%, which is high. The issues Coors is facing pertaining to distribution, and whether or not to open a new brewery would be a result of the firms re-invention. Growth through product development is important to Coors. It has six product lines in varying segments, indicating it is emphasizing product development within the brewing industry. At some points in its history, it was diversified outside of the brewing industry, but decided to focus on core competencies (Ghemawat, 1992). Coors benefits from high historical efficiency in production, and also strong brands that it can use to differentiate itself. D. Human Resource Management Unions have historically had little effect on the operations of Coors in particular, but they are present in almost every other firm in the industry. A strike during 1977, illustrated Coors lack of vulnerability to this threat (Ghemawat, 1992). E. Management Information Systems This section is not applicable. IV. Critical Success Factors This section will briefly outline how Coors is managing the critical success factors in its industry. Economies of scale are a necessity to be profitable in the industry. Coors Golden Colorado brewery is the largest in the industry, capable of producing 25-30 million barrels a year (Ghemawat, 1992). This production facility has allowed them to take advantage of economies of scale and spread the fix costs of production out of millions of barrels of product. Coors brewing facilities have historically had high capacity to deal with demand fluctuations, but future demand may prompt changes. Second, Coors has strong, differentiated brands that fit into multiple segments. Coors broad portfolio of over 40 brands allows it to reach a wide range of market segments (Ibisworld, 2010). Finally, a strong distribution network is imperative to obtaining sales levels. This is the aspect in which Coors is the weakest. Economics would dictate that an in-house operation would increase value-added, but Coors distribution network is not strong enough for them to realize financial benefit. V. Strategic Problem Management has failed to ensure the longà ¢Ã¢â€š ¬Ã‚ term survival of Coors because they have neglected the importance of strong distribution networks, and shipping expenses associated with proximity to markets, and of refrigeration needs. If Coors wants to successfully compete on a national level, like its competitors, it will need to boost the efficiency of its distribution network. VI. Strategic Alternatives Option 1 Construct an additional brewery in the eastern United States such as the location in Virginia. This brewery would serve the eastern United States, and add additional capacity to Coors overall. The pros of this option are as follows: It would reduce costs associated with shipping from the Golden Colorado site. Coors estimates a $2.50 saving per barrel if it would not have to ship its entire product the average 1500 miles. Although the brewing industry is not projected to grow, it would not hurt Coors to have more resources and capabilities, and not have to base their entire operation on the single brewery. The cons of this option are as follows: It would take a large investment to establish a new brewery, and maintain its production. A 5-million barrel brewery would cost $200-$250 million (Ghemawat, 1992). Option 2 A second option would be to begin focusing heavily on marketing. The numbers show that Coors is considerably behind their competitors in advertising spending as a proportion of sales. The company has strong brands that could perform better with additional promotion. The pros of this option are as follows: Increased brand awareness, and information about the varying brands that Coors produces will result in additional sales volume. Targeting advertising about certain product lines to certain target markets could increase penetration into market niches, and result in additional market share. The cons of this option are as follows: The additional costs of a national advertising effort will be high. ROI may be low because of statistical data from studies indicating that advertising in this industry does not create lasting impressions (Ghemawat, 1992). VII. Recommendation After weighing the alternatives and their pros and cons, it would be most beneficial for Coors to select strategic option one, and construct an additional brewing facility. If they were to select strategic option 2, and the effects of their marketing campaign were favorable, they may not be able to keep up with demand which would be disastrous for the company. It may take them too long to make the necessary expansions in time to capture the additional market share. Constructing another brewery would also serve to drastically lower shipping costs. VIII. Implementation There are a number of strategic steps that will need to be implemented. Coors will need to ensure that it has the necessary funds for completion of the project. If they do not have the necessary funds, they will need to be acquired through efficient channels. Second, the site will have to be purchased. Any local environmental or social regulations or preferences will need to be planned for. Construction of the brewery will begin. Finally, the project will need to be completed on time to meet projections of needed capacity from the brewery to satisfy the demand needs of the east coast. Necessary sunk costs will need to be maintained to aid in startup of the facility including provisions for raw materials and machinery, as well as beginning the brewing process. Finally, Coors distribution network will need to smoothly integrate the new site into the existing framework. The brewery will allow for additional production of all of Coors product segments, using the existing brand recognition and perceived quality that Coors brands have. The costs associated with shipping will be reduced drastically. Coors has an opportunity to further expand its capacity. Coors position within the industry is currently strong, but the company will need to take the necessary steps to facilitate growth. Fierce competition from Anheuser-Busch, the industry leader will only get tougher if Coors does not take a proactive rather than reactive stance. If the company follows the strategic recommendation above, it puts them in a good position to market themselves additionally, but only after they have the necessary capabilities. IX. Bibliography Datamonitor, Inc. (2009a). Alcoholic Drinks in the United States: Industry Profile. New York, NY. Retrieved April 19, 2010, from the Datamonitor Company Profiles Authority Database. Datamonitor, Inc. (2009b). Beer in the United States: Industry Profile. New York, NY. Retrieved April 19, 2010, from the Datamonitor Company Profiles Authority Database. Datamonitor, Inc. (2009c). Molson Coors Brewing Company: Company Profile. New York, NY. Retrieved April 20, 2010, from the Datamonitor Company Profiles Authority Database. Ghemawat, P. (1992). Adolph Coors in the Brewing Industry. Boston, MA: Harvard Business School. (Original work published 1987) History of Beer Brewing. (2010). Wine Making | Beer Brewing. Retrieved April 21, 2010, from http://www.winemakingbeerbrewing.com/history/history-of-beer-brewing IBISWorld, Inc. (2010). IBISWorld Industry Report 31212: Beer Production in the U.S. Washington, DC: Areeb Pirani. Molson Coors Brewing Company.

The Most Important Element of Style :: Writing Style Styles Essays

The Most Important Element of Style I've collected numerous ideas from both Joseph William's book Style Toward Clarity and Grace and William Strunk and E.B. White's The Elements of Style. These books serve as reference guides to writers seeking guidance in improving their writing skills. I feel the text format of any writing is the most important element of style. The text layout in regards to style deals with font, size and contrast. The font makes the text. You are able to change the font to show importance or the use quotes. An example would be "bolding" an example. A normal font such as Times Roman can be used to for the body. However, a font such as Arial Black allows the text to stand out. Changes in size also have the same effect. These adjustments in the format of the text also creates a contrast in the writing. This allows the reader to easily identify the important points. I feel Strunk and White choose a design that is easy to read and sticks directly to the point. The reader is able to locate the issue and find the solution and an example to problem. The style issue is listed by number and bolded to stand out. An example of the same correct style issue is given in different versions. This allows the reader to apply such style to their own writings. These different topics are stated in bold to be easily read. T he guide gives the reader good examples to assist in their writings. This is important because the reader is searching for something particular and seeking a particular resolution. Providing an easy to read guide is extremely helpful. A guide that is easy to navigate decreases the stress often associated with writing. The ability to find things easy is always helpful. The layout in Williams’ text is not easy to read. The paragraphs often seem connected. The effect of text format to prefered reading is evident in this guide. Several of my classmates agreed that this guide was not as easily accessible as Strunk & White. These feelings were solely based upon the format of the text.

Chapter emerging market

Among the most significant risks are political volatility, economic policy volatility and also legal risks. Firms entering emerging markets must understand the risks and take necessary action to mitigate the effect of those particular risks. 3. 2 political volatility Despite the demonstration and free market orientation process among emerging market countries, some of them particularly the one that just achieved independence, is having an election, or governs by corrupt individual or political party are susceptible to political risks.Multinational companies that invest In this little country are exposed to risks such as military coups, civil war, mass labor strikes, violence street protest, or erratic changes In government policy and Industry regulations that pose a threat to foreign Investment. Among the political risks associated with emerging markets are: Although the barrier to trade in most emerging markets have fall, and most of these countries are now enjoying greater stabilit y and experiencing steady growth, these emerging markets remain vulnerable to political risks that usually started inside the country itself and was largely beyond the control of investors.Extreme nationalism and religious fundamentalism as evidence in countries like Indonesia, Pakistan and India further contribute to the problem. Different in ideology and oppression from the current government also contributes to political volatility. Russia for example is still having an uncertain future direction as politics is unpredictable due to ongoing power struggles between reformers and the old-line communists. If the political clout could not be solved peacefully, then there is a potential for a civil war. Sir Lang is an example of a country that has been experiencing a civil war.There is a power tussle between the two ethnic groups, the Ginghams that currently forms the government of the country and the Tamil. Tamil guerrillas are fighting for and independent Tamil state. There has been an intense fighting since 1994 with more than 70,000 people have been killed in the war. 3. 2. 1 Corruption and cronyism Another serious issue associated with emerging markets is corruption and cronyism. Corruption refers to dishonest or fraudulent conduct by those in power, typically involving bribery or the abuse of a position of trust for dishonest gain. Most emerging markets in fact are always associated with corruption.Brazil for example suffers lost of unbelievable USED 60 billion to corruption and fraud in connection with government and social programs between the periods of 1990 to 1994 [1]. Even Malaysia is having the same problem as reported by the Auditor General on the issue of very serious leakages in government agencies expenditure. Second Finance Minister has made a media statement dated October 26, 2009 that the government billions of dollars lost due to leakages that involved in purchasing and procurement t the extreme pricing and do not meet the specifications and standards.Local newspaper, The STAR on October 26, 2009 also reported that this leakage resulted in losses between ARM 14-28 billion over a period of one year. Cronyism refers to the appointment of relatives and friends to positions of authority, without proper regard to their qualifications or an individual who was able to exploit connections with the government or private officers to gain wealth and economic position.In Philippine, cronies controlled key sectors, including the sugar and coconut industries and media, ND got state loans, lucrative contracts and concessions under the 31 -year-rule of Ferdinand Marco's who was ousted in 1986. In Thailand, Thai politicians depend heavily on business support during election. Patronage politics, particularly in the countryside, boosts both political spending and the cronyism mentality of asking favors from the powerful. The prostitution and drugs trade has also corrupted many officials and police force of the country [2]. 3. 2. Fight aga inst drug cartel Another problem that has an impact on political aspect of emerging countries fight against drug cartel. In recent years, the Mexico drug cartels have waged increasingly violent battles with one another as well as with the Mexican government. Upon taking office in December 2006, Mexican President Feline Cauldron deployed thousands of federal troops in an aggressive crackdown on drug-related violence. Yet death tolls continue to rise. There were more than 2,500 drug-related deaths in 2007, and the yearly toll rose to more than 4,000 by the end of 2008.Murders and street gun battles are only part of a more entrenched problem that includes corrupt police forces and a lackluster Judiciary [3]. 3. 2. Territorial claim and possible war In some region, there is a tense relationship between emerging countries with its neighboring country due to multiple territorial claims among countries. If a peaceful solution could not be reached through peaceful negotiations, there will b e potential for war between these nations. This is evidence at the Sprat's Islands at South China Sea.The area consists of more than 100 small islands or reefs, surrounded by rich fishing area and potentially by gas and oil deposits. They are claimed in their entirety by China, Taiwan, and Vietnam, while portions are claimed by Malaysia and the Philippines. About 45 islands are occupied by relatively small numbers of military forces from China, Malaysia, the Philippines, Taiwan, and Vietnam. Brunet has established a fishing zone that overlaps a southern reef but has not made any formal claim.In June 2011, the tense situation in Sprat's Islands amplify as the Philippines complains that Chinese ships offloaded building materials and erected marker posts on reefs to the west of its island of Palatal, within Manila's exclusive economic zone. Political volatility is hard to quantify due to broad characteristics of each emerging markets. What the managers could do is to anticipate upcomin g changes in the political aspect of the nation and formulate timely, successful strategies in the face of sudden changes and uncertainty.This is critical because political situation will have a direct impact on investment, decision-making, and corporate performance. Every market has it risks so businesses need to ensure that the risk worth the return they will get from the investment. 3. 2. 5 Social Unrest The current people uprising in emerging market countries of the Middle East such as Egypt, Jordan and Bahrain cause a growing concerns among investors who has already invest or thinking of investing into emerging markets.One of the factors that increase the possibility of social unrest is an increase in food and fuel price due to depleted resources and inflation. The high price of food is thought to have been one of the catalysts of the unrest in Tunisia, which led to the ousting of Zing al-Abiding Ben Ala as president in January 2011. Other reason that makes people revolt includ es corrupt leader and government, change in tax, economic and fiscal policy that affect daily life, UN-fair election, high unemployment etc.Figure 2 shows the level of lattice and social risk of every country, based on a report produced by the Royal bank of Canada in 2011. Among the emerging market countries, China, Egypt, Indonesia and Saudi Arabia is listed as high risk countries, together with Colombia. India, Russia, South Africa, Jordan and Turkey are among the medium risk countries while Mexico, Bahrain and Thailand are considered as moderate. Other emerging countries with low political and social risks according to this report. 3. 3 Economic volatility The second major risks associated with emerging markets are the level of economic volatility.Economic growth may be high, but crises are frequent, as the Asian crisis of 1997 demonstrated. Emerging countries' economies are highly volatile due to frequent changes in institutions, industry structure and the macro-economy. Both th e political and economy actually have a huge impact on one another, and firms can anticipate risks in the future if any of them become volatile. Among the element that brought economic volatility includes currency risks, expropriation risks, and foreign debt crisis. 3. 3. Currency risks Although there is an increasing trend towards liberation's of international payment ND transfers, there is still a concern among businesses that there could be a change in policy. Even emerging market countries have the tendency to influence the exchange rates. In some cases, the government will try to peg it's currency to a single currency such as a US dollar to stop aggressive drop in the country's currency value especially during financial crisis. Figure 2 shows how the exchange rate of Asian countries dropped significantly during the Asian financial crisis.The Koala Lump Stock Exchange (KEELS) had lost more than 50% from above 1,200 to fewer than 600, and the ringing had lost 50% of TTS value, fa lling from above 2. 50 to under 4. 57 on Can 23, 1998) to the dollar. The then premier, Tune Dry. Mathis Mohammad imposed strict capital controls and introduced a 3. 80 peg of Malaysian ringing against the US dollar. 3. 3. 2 Expropriation risk One of the economic policy related concern among the investors was â€Å"expropriation risk†, which refers to the possibility that host governments would seize all foreign- owned assets.This risk however has largely disappeared. Stronger international law and the symbiotic nature of growth in emerging and developed economies reduced set seizures to nearly zero during the sass. A 2009 survey by the Multilateral Investment Guarantee Agency and the Economist Intelligence Unit found that multinational enterprises considered breach of contract, restrictions on the transfer and convertibility of profits, civil disturbance, government failure to honor guarantees, and regulatory restrictions all to be more significant risks than the potential s eizure of assets [4].Emerging market countries policy of attracting foreign investment into their country foreign investors should be wary of any change in political and economic situation, gather with regulatory uncertainty can make the expropriation action possible. Even in the communist country like China, the government has never confiscate any foreign assets since 1978 when the country officially launched its so-called ‘open door' policy, unless the asset in question specifically compromises China's national security. 3. 3. Foreign debt crisis Foreign debt crisis is external debt incurred by governments of emerging markets generally in quantities beyond the governments' political ability to repay. â€Å"Unplayable debt† is a term used to describe external debt when the interest on the debt exceeds hat the country's politicians think they can collect from taxpayers, based on the nation's gross domestic product, thus preventing the debt from ever being repaid [5]. Em erging market countries have traditionally borrowed from the developed nations to support their economies.In the sass such borrowing became quite heavy among certain developing countries, and their external debt expanded at a very rapid, unsustainable rate. The result was an international financial crisis. Most of the time, government with high level of debt will have to re-vamp its financial policy to accommodate debt payment. Countries such as Mexico and Brazil declared that they could not keep up with the schedule of interest and principal payments, causing severe reactions in the financial world.Cooperating with creditor nations and the MIFF, these countries were able to reschedule their debts and delay payments to remove financial pressure. But the underlying problem is not really solved as developing countries were saddled with staggering debts that totaled more than $800 billion in the mid-sass. The large debts created huge problems for the developing countries and for the ba nks that faced the risk of substantial losses on heir loan portfolios. Such debts increased the difficulty of finding funds to finance development.In addition, the need to acquire foreign currencies to service the debt contributed to a rapid depreciation of the currencies and to rapid inflation in Mexico, Brazil, and a number of other developing nations. Even emerging market in Asia such as Malaysia, Philippines, Indonesia, Pakistan, India etc. As shown in Figure 4, also facing a serious problem with foreign debt. The wide fluctuations in the price of oil were one of the factors contributing to the debt problem. When the price of oil SSE rapidly in the sass, most countries felt unable to reduce their oil consumption quickly.In order to pay for expensive oil imports, many went deeply into debt. They borrowed to finance current consumption?something that could not go on indefinitely. As a major oil importer, Brazil was one of the nations adversely affected by rising oil prices [6]. Fi gure 3. : Foreign debt among Asian countries 3. 4 Legal risks The possibility of investing in emerging markets by Macs will increase if the legal system in the country is reliable and always give fair decisions. Contract will only be void.In sass, many South East Asian governments in their effort to attract foreign investors offered contracts that protect investors from risks related to lower than expected demand, currency conversions, exchange rate and political force measure. The Asian financial crisis in 1997 brought those investors' favorable treatment into sharp relief as currency values, share prices, and electricity demand all plummeted. Political officials had to choose between honoring the contracts, at the risk of compromising their own popular support, and renegotiating them in order to maintain that support.In the end, many career minded public officials in Southeast Asia chose to renegotiate or cancel scores of contracts. Even when contracts can be legally enforced, exp erience shows that inventive politicians can circumvent them, through a wide variety of means other than changing laws [4]. Another example is when foreign investors involved in oil and gas industries in countries such as Transmitted, Gyrations and Astrakhan, which is a newly independent countries of a former USSR regime.Even though the contract seems to put them on favorable terms, the possibility that firms will face a breach of contract ND other regulatory problems is high. Another legal issue that always arises is when some emerging market countries have laws that limit the amount of profit firms can take out of the country, which means that company might make a huge amount of profit by doing business in the country but may be prohibited from taking the whole profit back to the home country. 3. Minimizing the risks There are many options available for companies in Minimizing the risks when investing in emerging markets. They are: 3. 3. 1 Thorough political and economic risk anal ysis Multinational firms should carefully evaluate the emerging market country's political ND economic risks before deciding whether to do business there or not. Nowadays, there are vast indicators, statistics and political analysis paper published and publicly available for review. This is the best source for country's information that can help decision making.However, there are some emerging market countries that are less transparent and access to accurate economic or industry statistics may not exist at all. In this case, firms might not have the information and expertise to do the analysis by themselves. Then the best option is to, employ a consultant service firm who have the expertise in inducting the analysis. 3. 3. 2 Protect the investment with political risks insurance Political risk insurance is a type of insurance that can be taken out by businesses, of any size, against political risk.Political risk insurance is available for several different revolution, insurrection, c ivil unrest, terrorism or war; Governmental expropriation or confiscation of assets; Governmental frustration or repudiation of contracts; Wrongful calling of letters of credit or similar on-demand guarantees; Business Interruption; and Inconvertibility of foreign currency or the inability to repatriate funds. 3. 3. Involve host country's government in the business Government equity participation either through the relevant government agencies or through Government Related Companies (Gels) can bring a lot of advantage to firm and to the government itself.This can be done in various ways such as by creating a new Joint venture company with both parties have a percentage of shares in it, or through strategic alliances and consortium. By having the government itself as partner, firms may find it easier to obtain the license, get full support from the government, reduce the risk of expropriation and even improve company's goodwill mongo the people. 3. 3. 4 Have a Joint venture or allian ce with local company. The objective of having cooperation with local company is almost similar to having the relationship with the government as discussed previously.Some other benefit for Macs when they cooperate with local company includes firms can share the knowledge of local company about the trend, taste, preferences and culture of the local people. Both parties will also share the costs and risks of doing business. At the same time, Macs can benefit the local company by having a knowledge and technology transfer, besides sharing the experience of Macs. 3. 3. Conduct a proper scenario planning when making the entry decision.Scenario planning refers to the process of visualizing what future conditions or events are probable, what would be the consequences or effect of it and how to respond to, or benefit from it. For example, when a pharmaceutical company starts to develop a new compound it does not know if these typically very large investments will generate any benefit in th e future. So, success is dependent on many factors; internal factors such as the skills and knowledge of researchers and developers, and external influences such as technology trends, demand and price developments.In order to do that, they have to tap into tacit information that is already available within or outside the company and to convert it into knowledge about possible future scenarios and options the Risks associated with investments into intangibles, especially of investments into the strategy and in the product innovation chain of a company, are much higher than in traditional industrial physical asset type of investments. But on the other hand the upside is often unlimited.Businesses which are engaged in R and continuous product and market innovations must find ways to limit the downside, the risks, and o boost the upside in order to fully leverage their investments and to generate value for investors and other stakeholders. Scenario planning is a very good method to do t hat and to limit especially large strategic risks. Figure 5 shows finding of a study on what is the best tools to mitigate the effect of risks in four major emerging markets; Russia, India, China and Brazil (Also called BRICE countries).

Free Essays on Heat of Darkness

In the novel Heart of Darkness by Joseph Conrad one of the major themes is the perversity of the Congo. What is good and evil in the European world becomes distorted and hazy in the heart of Africa. To the outside world white is good and black is evil; it is as simple as that. This philosophy is embodied in Marlow’s aunt, who believes that his job is to bring light into the land of darkness and to enlighten the savages. This idea, however, becomes corrupted when white objects symbolize suffering and greed instead of good, and light images hide the presence of darkness. Symbols such as, a white rag, white imperialists and ivory, no longer represent the good will of the imperialists, on the other hand they represent the exploitation and chaos that the Europeans have brought to the Congo. The main character Marlow is faced with this confusion as he voyages through the jungle, and he must reevaluate his former opinions, which no longer hold true. The European philosophy is shown t hrough the conversation that Marlow has with his aunt before commencing his adventure. According to her, his job seems clear: to bring civilization and light to the â€Å"heart of darkness.† Instead of focusing on the horrors of imperialism she is disillusioned to believe that it is all for the better. The Europeans, especially the British have no respect for other cultures or other ways of life, and they truly believe that they are helping the Africans. Not by choice but because of the â€Å"white man’s burden† they feel the need to â€Å"[wean] those ignorant millions from their horrid ways†(28). To the outside this seems like an earnest motive; however, once inside Marlow begins to see new forms of corruption. Are the imperialists their to help, or are they there to make money to fulfill their greed? He begins to realize that it is not the black savages who represent evil, but rather the selfish whites. This corruption is further shown through the nove l with sy... Free Essays on Heat of Darkness Free Essays on Heat of Darkness In the novel Heart of Darkness by Joseph Conrad one of the major themes is the perversity of the Congo. What is good and evil in the European world becomes distorted and hazy in the heart of Africa. To the outside world white is good and black is evil; it is as simple as that. This philosophy is embodied in Marlow’s aunt, who believes that his job is to bring light into the land of darkness and to enlighten the savages. This idea, however, becomes corrupted when white objects symbolize suffering and greed instead of good, and light images hide the presence of darkness. Symbols such as, a white rag, white imperialists and ivory, no longer represent the good will of the imperialists, on the other hand they represent the exploitation and chaos that the Europeans have brought to the Congo. The main character Marlow is faced with this confusion as he voyages through the jungle, and he must reevaluate his former opinions, which no longer hold true. The European philosophy is shown t hrough the conversation that Marlow has with his aunt before commencing his adventure. According to her, his job seems clear: to bring civilization and light to the â€Å"heart of darkness.† Instead of focusing on the horrors of imperialism she is disillusioned to believe that it is all for the better. The Europeans, especially the British have no respect for other cultures or other ways of life, and they truly believe that they are helping the Africans. Not by choice but because of the â€Å"white man’s burden† they feel the need to â€Å"[wean] those ignorant millions from their horrid ways†(28). To the outside this seems like an earnest motive; however, once inside Marlow begins to see new forms of corruption. Are the imperialists their to help, or are they there to make money to fulfill their greed? He begins to realize that it is not the black savages who represent evil, but rather the selfish whites. This corruption is further shown through the nove l with sy...