Case 6: the Financial Detective

Case 6 : The Financial Detective Financial data is the most crucial information in describing any sort of business, but this information is also useful in differentiating between different types of businesses. In any specific industry, many key players are present, yet their strategies and implementations of business vary greatly. Two firms may achieve the same earned profit, yet go about securing this profit in radically different ways . A close analysis of financial data for each business can be used to understand and explain these different strategies employed by a given company and how that strategy affects the financial performance of each company. This case calls for the examination of two different companies within the same field and, through analysis of selected financial information, determining which set of data belongs to which company based on the different characteristics and strategies employed by each company. The results of this analysis are as follows. Health Products The two companies listed here manufacture and market health care products. The first is the world’s largest prescription-pharmaceutical company containing a broad pipeline of ethical pharmaceuticals backed by significant research and development, which has recently divested many of its non-related business holdings and is considered the partner of choice in terms of licensing agreements. The second company is a diversified health-products company that manufactures and mass markets a broad line of pharmaceuticals, over-the-counter drugs, health and beauty products and medical devices. Brand development and management is key to this company. Company A is the more diversified company, while Company B is the world’s largest pharmaceutical company. A major signifier here is the intangible assets owned by Company B, 46. 1 vs. 22. 2, which would explain the patents and licensing deals mentioned in the company description, as well as the robust research and development budget. Another major clue here is in the inventory turnover. Company A, well-diversified with a mass-market strategy, turns over their inventory 3. 8 times vs. .93 of company B, which is to be expected of a mass-market company intent of volume sales to consumers. Beer Two brewers of beer are described here, the first being a national brewer of mass-market consumer beers sold under a variety of brand names who also owns a number of beer-related businesses and several major theme parks. The second is a smaller brewery with smaller production volume and higher prices that outsources most of its brewing activity. The firm is also mentioned to be financially conservative and has recently undergone major cost-saving initiatives. Company C is the national brewer while company D is the small market brewery. A major key here is understanding that company D is described as financially conservative, which helps explain the large amount of cash and short-term investments (55. 6) that they keep on hand, while also holding no long-term debt. A large, national company like C would be expected to carry some debt in order to finance such large operations. Also, as C operates an extensive network of breweries and distributorships, while also owning beer-related businesses and theme parks, it would follow that their net fixed assets would be quite large (54. 7) compared to the relatively smaller D (16). Computers The two companies described here sell computers and related equipment. One company focuses exclusively on mail-order sales of built-to-order PCs and devices and is an assembler of PC components manufactured by suppliers. The other company sells a highly differentiable line of computers and accessories and has recently begun to recover from a dramatic decline in its market share. The firm has an aggressive retail strategy intended to drive traffic through its stores and expand its installed base of customers. Company E is the online retailer, while Company F is the retailer. As E is an assembler of parts supplied by a manufacturer, their manufacturing is essentially outsourced, which accounts for the higher cost of goods sold (81) as well as the higher amount of accounts payable, as they consume more supplies in order to assemble their products. As well, since company F is a bricks & mortar retailer as opposed to an online vendor, F has had to adopt and aggressive retail strategy that requires advertising their products and stores and employees in which to sell their products, which accounts for the relatively higher SGA expense (23. 1). Books and Music Of the two companies profiled here, the first focuses its sales based on a vast retail-store presence. This company is the leader of traditional book retailing, and also maintains an online presence and owns a publishing imprint. The other company sells books and music solely through its web site. Media is the majority of their sales, but they also sell electronics and other merchandise, and the company has only recently become profitable due to an aggressive strategy of acquiring related online businesses. Company G is the online retailer while company H is the traditional seller. G reaches customers solely through the internet, and besides various warehouses used for shipping it would have no need to keep large fixed assets, which explains why their net fixed assets (7. 6) are significantly lower than the traditional seller (24. 4), who requires the retail outlets needed to reach their customers. Along these lines, as H is a traditional seller of goods, their inventories (38. 6) are bound to be much higher, as their retail outlets need to remain stocked rather than ordering as needed like G would. This explains G’s higher cost of goods sold due to not needing to buy in bulk. Paper The companies listed here are both paper manufacturers. The first company is the world’s largest maker of paper and paper products, who also owns timberland, numerous paper-related facilities and a paper-distribution network. The company has spent the last few years closing inefficient mills, implementing cost-containment initiatives and selling nonessential assets. The other firm is a small producer of specialty papers as well as towel and tissue products. Most of the company’s products are marketed under branded labels and the company purchases the wood fiber used in the paper making process. Company I is the larger firm while company J is the smaller firm. The first clue to this conclusion is the amount of long-term debt company I is carrying (41. 3) compared to company J (18. 3). As we know that the larger firm has spent the last few years reorganizing and attempting to cut costs, it would make sense that these initiatives were taken because of high company debt. Along this line, I’s total debt/total assets is much higher (42. 8), which would also help to explain the cost-containment initiatives needed. Also, I’s cost of goods sold (75. 3) is lower than J’s (82. 9), most likely due to their ownership of supply companies and J’s decision to buy theor wood fiber on the open market. Hardware and Tools These two companies manufacture and sell hardware and tools. The first company is a global manufactur er and marketer of power tools and power-tool accessories that sells primarily to retailers and distributors with the branded products intended to reach the average consumer. The other company manufactures and markets high-quality tools for professional users, offering a broad range of products sold through its own technical representatives and mobile franchise dealers. The company also provides financing for franchisees and customers’ large purchases. Company K is the global manufacturer while company L is the professional tool manufacturer. The first major hint here is the SGA expense for each company. Company L’s expense (38. 9) is significantly higher because of their use of technical representatives and mobile franchises that they themselves provide financing for. As well, company L’s gross profit (48. ) is significantly higher, most likely due to the higher prices they are able to charge due to the precision and quality of their professional-minded tools. Retailing These two companies are both large discount retailers. The first firm carries a wide variety of nationally advertised general merchandise and is known for low prices and its volume-orientated strategy. Most of its stores are leased near the company’s network of distribution centers and the company plans to expand. The second company is a rapidly growing chain of upscale discount stores that attempts to match other retailers’ prices and offers deep discounts. The company has partnerships with many leading designers and offers credit to qualified customers. Company M is the general merchandiser while company N is the upscale discount store. As mentioned in the description, company N is known for providing credit to boost sales, and thus this extended credit appears in their receivables (17), as opposed to M (1. 4). Also, company N’s gross profit and profit margins are higher, as their strategy isn’t based on volume sales (make smaller profit but sell way more) like company M is. Newspapers The companies listed here both own newspapers. The first is a diversified media company that generates most of its revenues through newspapers sold throughout the country and around the world. The company has large central controls and competes fiercely for subscribers and advertising revenues. The company also recently built a large office building for its headquarters. The second company owns a number of small community newspapers throughout the south and mid-west. The firm essentially holds a portfolio of small local monopolies and has a significant amount of goodwill on its balance sheet. The company’s success is hinged on decentralized decision making and administration. Company O is the Midwestern Company, while Company P is the well-diversified company. The description mentions how company P is forced to fiercely compete, which would surely raise their SGA expense (39. 7) as compared to company O (23). This is also true considering company O’s emphasis on decentralized management and administration, which affects the SGA expense. Also, P recently built and owns a large office building, which would add to their net fixed assets (34. 6) compared to company O’s (14. 1).

Apple Case Study 1

Apple Table of Contents: I. Introduction II. Opening Case III. Competitor Analysis IV. Sales Analysis V. Profitability Analysis VI. Cross Elasticity of Demand: Competitors v/s iPhone VII. Demand, Cost and Pricing VIII. Pure competition, Monopolistic Competition & Oligopoly IX. Conclusion X. References I. Introduction Apple Inc. (Apple) designs, manufactures and markets a range of personal computers, mobile communication and media devices, and portable digital music players, and sells a range of related software, services, peripherals, networking solutions, and third-party digital content and applications. It's products and services include Macintosh (Mac) computers, iPhone, iPad, iPod, Apple TV, Xserve, a portfolio of consumer and professional software applications, the Mac OS X and iOS operating systems, third-party digital content and applications through the iTunes Store, and a range of accessory, service and support offerings. The Company sells its products globally through its retail stores, online stores, and direct sales force and third-party cellular network carriers, wholesalers, retailers, and value-added resellers. As of September 25, 2010, the Company had opened a total of 317 retail stores, including 233 stores in the United States and 84 stores internationally. II. Opening Case: Apple reveals the iPhone MACWORLD SAN FRANCISCO—January 9, 2007—Apple ® today introduced iPhone, combining three products—a revolutionary mobile phone, a widescreen iPod ® with touch controls, and a breakthrough Internet communications device with desktop-class email, web browsing, searching and maps—into one small and lightweight handheld device. Phone introduces an entirely new user interface based on a large multi-touch display and pioneering new software, letting users control iPhone with just their fingers. iPhone also ushers in an era of software power and sophistication never before seen in a mobile device, which completely redefines what users can do on their mobile phones. â€Å"iPhone is a revolutionary and magical product that is literally five years ahead of any other mobi le phone,† said Steve Jobs, Apple’s CEO. We are all born with the ultimate pointing device—our fingers—and iPhone uses them to create the most revolutionary user interface since the mouse. † iPhone is a Revolutionary Mobile Phone iPhone is a revolutionary new mobile phone that allows users to make calls by simply pointing at a name or number. iPhone syncs all of your contacts from your PC, Mac ® or Internet service such as Yahoo! , so that you always have your full list of up-to-date contacts with you. In addition, you can easily construct a favorites list for your most frequently made calls, and easily merge calls together to create conference calls. iPhone’s pioneering Visual Voicemail, an industry first, lets users look at a listing of their voicemails, decide which messages to listen to, then go directly to those messages without listening to the prior messages. Just like email, iPhone’s Visual Voicemail enables users to immediately randomly access those messages that interest them most. Phone includes an SMS application with a full QWERTY soft keyboard to easily send and receive SMS messages in multiple sessions. When users need to type, iPhone presents them with an elegant touch keyboard which is predictive to prevent and correct mistakes, making it much easier and more efficient to use than the small plastic keyboards on many smartphones. iPhone also includes a calendar application that allows calendars to be automatically synced with your PC or Mac. iPhone fea tures a 2 megapixel camera and a photo management application that is far beyond anything on a phone today. Users can browse their photo library, which can be easily synced from their PC or Mac, with just a flick of a finger and easily choose a photo for their wallpaper or to include in an email. iPhone is a quad-band GSM phone which also features EDGE and Wi-Fi wireless technologies for data networking. Apple has chosen Cingular, the best and most popular carrier in the US with over 58 million subscribers, to be Apple’s exclusive carrier partner for iPhone in the US. iPhone is a Widescreen iPod Phone is a widescreen iPod with touch controls that lets music lovers â€Å"touch† their music by easily scrolling through entire lists of songs, artists, albums and playlists with just a flick of a finger. Album artwork is stunningly presented on iPhone’s large and vibrant display. iPhone also features Cover Flow, Apple’s amazing way to browse your music library by album cover artwork, for the first time on an iPod. When navigating your music library on iPhone, you are automatically switched into Cover Flow by simply rotating iPhone into its landscape position. Phone’s stunning 3. 5-inch widescreen display offers the ultimate way to watch TV shows and movies on a pocketable device, with touch controls for play-pause, chapter forward-backward and volume. iPhone plays the same videos purchased from the online iTunes ® Store that users enjoy watching on their computers and iPods, and will soon enjoy watching on their widescreen televisions using the new Apple TVâ„ ¢. The iTunes Store now offers over 350 television shows, over 250 feature films and over 5,000 music videos. Phone lets users enjoy all their iPod content, including music, audiobooks, audio podcasts, video podcasts, music videos, television shows and movies. iPhone syncs content from a user’s iTunes library on their PC or Mac, and can play any music or video content they have purchased from the online iTunes store. iPhone is a Breakthrough Internet Communications Device iPhone features a rich HTML email client which fetches your email in the background from most POP3 or IMAP mail services and displays photos and graphics right along with the text. Phone is fully multi-tasking, so you can be reading a web page while downloading your email in the background. Yahoo! Mail, the world’s largest email service with over 250 million users, is offering a new free â€Å"push† IMAP email service to all iPhone users that automatically pushes new email to a user’s iPhone, and can be set up by simply entering your Yahoo! name and password. iPhone will also work with most industry standard IMAP and POP based email services, such as Microsoft Exchange, Apple . Mac Mail, AOL Mail, Google Gmail and most ISP mail services. iPhone also features the most advanced and fun-to-use web browser on a portable device with a version of its award-winning Safariâ„ ¢ web browser for iPhone. Users can see any web page the way it was designed to be seen, and then easily zoom in to expand any section by simply tapping on iPhone’s multi-touch display with their finger. Users can surf the web from just about anywhere over Wi-Fi or EDGE, and can automatically sync their bookmarks from their PC or Mac. Phone’s Safari web browser also includes built-in Google Search and Yahoo! Search so users can instantly search for information on their iPhone just like they do on their computer. iPhone also includes Google Maps, featuring Google’s groundbreaking maps service and iPhone’s amazing maps application, offering the best maps experience by far on any pocket device. Users can view maps, satellite images, traffic information and get direct ions, all from iPhone’s remarkable and easy-to-use touch interface. iPhone’s Advanced Sensors Phone employs advanced built-in sensors—an accelerometer, a proximity sensor and an ambient light sensor—that automatically enhance the user experience and extend battery life. iPhone’s built-in accelerometer detects when the user has rotated the device from portrait to landscape, then automatically changes the contents of the display accordingly, with users immediately seeing the entire width of a web page, or a photo in its proper landscape aspect ratio. iPhone’s built-in proximity sensor detects when you lift iPhone to your ear and immediately turns off the display to save power and prevent inadvertent touches until iPhone is moved away. Phone’s built-in ambient light sensor automatically adjusts the display’s brightness to the appropriate level for the current ambient light, thereby enhancing the user experience and saving power at the same time. Pricing ; Availability iPhone will be available in the US in June 2007, Europe in late 2007, and Asia in 2008, in a 4GB model for $499 (US) and an 8GB model for $599 (US), and will work with either a PC or Mac. iPhone will be sold in the US through Apple’s retail and online stores, and through Cingular’s retail and online stores. Several iPhone accessories will also be available in June, including Apple’s new remarkably compact Bluetooth headset. iPhone includes support for quad-band GSM, EDGE, 802. 11b/g Wi-Fi and Bluetooth 2. 0 EDR wireless technologies. iPhone requires a Mac with a USB 2. 0 port, Mac OS ® X v10. 4. 8 or later and iTunes 7; or a Windows PC with a USB 2. 0 port and Windows 2000 (Service Pack 4), Windows XP Home or Professional (Service Pack 2). Internet access is required and a broadband connection is recommended. Apple and Cingular will announce service plans for iPhone before it begins shipping in June. III. Competitor Analysis Market Share by OS Nokia still has a third of the overall mobile phone market. The average selling price of a Nokia Smartphone fell by 21% from 2009. Nokia is selling plenty of devices, but they are at the cheap end of the market. They lost what some in the industry refer to as â€Å"mindshare† to Apple's iPhone and the Google Android mobile software platform. Nokia wants to sell services – music, maps, and applications – as well as hardware but high-end phone users are looking elsewhere. The company says a new family of Smartphone’s, led by the N8 released in 2010, will revive its fortunes at the top end of the market. Nokia chief executive Stephen Elop was forced to abandon the mobile phone giant's in September 2010. The news that the Finnish firm might only break even in the second quarter of this year slashed 25 per cent off its value in 24 hours. Mobile phone manufacturer Nokia has announced it will shed 7,000 jobs from next year as part of a plan to refocus the company on Smartphone. The Finnish firm is moving from Symbian to Microsoft's Smartphone technology. The firm recently confirmed the deal with Microsoft last week to jointly develop Smartphone technology, which will cut costs by about 1bn Euros a year. Under the terms of that deal, Nokia agreed to start using the Microsoft's operating system on its Smartphone instead of its own Symbian platform. Nokia's response to the Smartphone threat from competitors such as Apple's iPhone and phones using Google's Android system has been long been a key investor concern. Prior to the iPhone, Nokia was the king of mobile handsets. Now its share of the Smartphone market has plunged from 47 per cent to 27 per cent. It has also lost its ranking as the largest handset maker in terms of revenue to Apple. Android When Google decided to get into the Smartphone business it decided that Android devices would be everything that the iPhone was not. Apple one or two handsets, Google on the other hand was laying out a great number of handsets. Manufacturers such as HTC, LG and Motorola could use the new operating system for free. It enabled Google to have phones for every section of the market – high powered and pricey, cheap and practical. Android's real selling point would be the apps. Here too, the policy was one of openness. Apple controlled its App store controlling every submission and rejecting those that contravened its rules. For Android anyone who had written an app could upload it. At first, users and app developers welcomed the free-and-easy approach. However, some have begun to question if Google's policy for the apps is the best way to manage the Market. Three years after its launch, hardware sales are booming. Yet sales of Android apps remain relatively poor. Estimates of Apple’s App store in 2010 were ? 1. billion. Android Market managed just ? 62 million. The figure was lower than both Blackberry App World (? 100m) and Nokia's Ovi store (? 64m). Research predicts massive improvements for Android by this time 2012 but it is still expected to lag far behind iOS. Finally Android's market share grew to surpass the Symbian platform used by Nokia making it the most sold Smartphone Microsoft Microsoft market share is declining in the Smartphone platf orm market. Windows Phone 7 lacks a number of features despite the innovation of its user interface. Microsoft hopes to gain market share once Nokia Windows Phones and its wide-ranging â€Å"Mango† software update get released later in 2011. Microsoft has unveiled the first major update to its Windows Phone 7 operating system it launched in 2010. The update, codenamed Mango, intdoduces more than 500 changes. Microsoft’s attempts to break into the Smartphone race have been mediocre at best. Currently, the company controls less than 4% of the market. Despite this, Microsoft’s Windows Phone 7 platform is forecasted to beat Android in 2013. Microsoft introduced Pocket PC in 2000, followed by Windows Mobile in 2003, prior to Apple and Android's release. However it still failed to compete in the market, or rival Symbian who controlled nearly 90% of the market share. Microsoft lacked the features and compatibility that Symbian was featuring at the time, and as a result, consumers refused to recognize its product or give Microsoft the opportunity to be a contender in the Smartphone industry. The platform was notoriously sluggish and the most difficult of any platform to use. Microsoft tried to solve some of these issues with minor tweaks and software updates over the years to little or no avail. As Windows Mobile market shares continued to decline, Microsoft had no other option than to overhaul the Microsoft platform and launch Windows Phone 7 in 2010. Windows Phone 7 was much improved. But Microsoft still failed to take control of the market, or garner any real significant attention from consumers. RIM Research In Motion has given up more ground to Apple and Google in the hypercompetitive Smartphone market, a report shows, while two brokerages cut their price targets for the BlackBerry maker on concerns it can no longer keep pace. The latest figures dropped RIM from second to third place. The Canadian company's struggle to compete is unlikely to get any easier, with Apple's upcoming iCloud service expected to hurt RIM. IV. Sales Analysis Apple  produced some stellar results: revenues up 48% year-on-year to $13. 5bn, and profits up. The process is confused because  Apple has begun restating its year-ago earnings, to take into account the fact that it now recognizes income and revenue from subscription-based products such as the  iPhone(which may be sold on an 18-month contract) as soon as it gets it, rather than deferring it over the life of the device/contract as it used to. It began doing that in the most recent quarter, covering Christmas, which – confusingly – is the first quarter of its financial year. So previously, the second-quarter revenues were $8. 16bn, not the newly-restated $9. 08bn; the profits were $1. 21bn, not the now-given figure of $1. 62bn. The numbers also don't include the iPad, because the quarter ended on March 31 – the iPad was launched three days later. According to MacJournals, which chewed over the numbers, â€Å"At $5. 445 billion, iPhone sales accounted for 40% of Apple's revenue. All Mac sales were 28%, all  iPod/Music sales were 24%. Mac sales are 2. 943m units, generating revenue of $3. 76bn – which Apple says was 33% year-on-year growth, compared to market growth of 24%. The company's market share of mobile subscribers has also taken a deep plunge. Market research firm comScore says that between October and January, Microsoft's share of the market fell from 19. 7% to 15. 7%. RIM, the maker o f the BlackBerry, remained the leader, growing from 41. 3% to 43%. Apple ‘s iPhone increased slightly, from 24. 8% to 25. 1%, and Google's Android grew by more than 250%, going from 2. 8% to 7. An interesting analysis comes from Tomi Ahonen, a former Nokia executive. â€Å"I am writing the first history of the once-iconic iPhone, written now in early April 2010, before Apple has released its first quarter earnings for 2010. This is literally the peak of the short reign that Apple's iPhone had as the most emulated Smartphone. [†¦] And mark my words, the numbers are now very clear, Apple's market share peak among smartphones, and among all handsets, on an annual basis, is being witnessed now. † V. Profitability Analysis Apple reported in the second quarter of 2011 that net income rose 95 percent, to $5. 9 billion, or $6. 40 a share, from $3. 07 billion, or $3. 33 a share, in 2010. Revenue climbed 83 percent, to $24. 67 billion, from $13. 5 billion. The profit margin in 2011 is 22. 36% of the sales which is an improvement over the level the company achieved in 2010. The company’s return of equity is 38. 78% while in 2010 it was 26. 2% which means that there is a 12. 58% increase on the return of equity. The gross margin is 39. 07% which is slightly better than the company achieved in 2010. VI. Cross Elasticity of Demand: Competitors V/s iPhone When the iphone 3GS was released on July 11, 2008 it cost $199 with the AT;T two year contract. In January 2011 Apple cut the iphone 3GS price to $50. cross-price elasticity of demand = % ? in demand for product A% ? in price for product B %? in price for iphone: Price of Iphone 3GS, 2010 + Price of Iphone 3GS, 2011? Price of Iphone = 199 + 5050-199 = -1. 671% With the Market share OS table above we can compute the % ? I demand for prodct competing with the iphone. %? in demand for Symbian = Symbian market share of Q1 2011 – Symbian market share of 2010 = 27. 4% – 37. 6% = -8. % Symbian-iphone cross-price elasticity of demand = % ? in demand for Symbian% ? in price for Iphone = -8. 6%-1. 671% = 5. 146 %? in demand for Android = Android market share of Q1 2011 – Android market share of 2010 = 36% – 22. 7% = 13. 3% Android -iphone cross-price elasticity of demand = % ? in demand for Android% ? in price for Iphone = 13. 3%-1. 671% = -7. 959 %? in demand for R IM = RIM market share of Q1 2011 – RIM market share of 2010 = 12. 9% – 16. 0% = -3. 1% RIM -iphone cross-price elasticity of demand = % ? in demand for RIM% ? in price for Iphone = -3. 1%-1. 671% = 1. 855 ? in demand for Microsoft = Microsoft market share of Q1 2011 – Microsoft market share of 2010 = 3. 6% – 4. 2% = -0. 6% Microsoft -iphone cross-price elasticity of demand = % ? in demand for Microsoft % ? in price for Iphone = -0. 6%-1. 671% = 0. 359 The price elasticity of demand is the responsiveness of quantity demanded by a change of 1 percent in price. It is calculated by dividing the percentage change in the demanded quantity by the corresponding percentage change in price. The iPhone was launched in the US roughly at the beginning of the second Quarter 2008, at a price of $599. In mid September Apple reduced the price for the iPhone by 33% from $599 to $434. According to the quarterly reports, Apple sold 270 000 iPhones in the second quarter and 1,119 000 iPhones in the third quarter. If calculated according to the equation for price elasticity of demand, the iPhone would have a price elasticity of 4. 7, which means that Apple would lose almost 4. 7 percent of iPhone sales for each corresponding 1 percent increase in price. Since elasticity is greater than 1 the price is inelastic so the iPhone is a luxury commodity. Many consumers wait until increased competition forces Apple to decrease prices. VII. Demand, Cost ; Pricing Demand Apple’s iPhone Supply and Demand Concept of Supply and Demand There is a general rule in economics that if the price of a certain good or service rises, then the demand for such good or service declines. If the price decreases, then potential demand also increases (inverse relationship). On the supply side, if the price of a good or service increases, then firms will be willing to supply the market with higher volume of such good or service. If the price decreases, then firms will cut their supply of the good or service (positive relationship. The market then adjusts the price of the good or service in order to satisfy both the consumers and the suppliers. This is called market equilibrium. Apple iPhone Demand Last July, Apple iPhone was able to outsell all smart phones in the United States. It almost equaled the sales of the most popular feature phone (LG chocolate), giving it a relatively stable position in the market. New Apple handset models accounted for almost 1 . of all phone handset sales in the US for about a month. It was estimated that the demand for Apple iPhone was rising at7 . 2 a month, equivalent to about 5 million units of quantity demanded. The market research firm iSuppli noted â€Å"This is a remarkable accomplishment for Apple, considering that July marked the first full month of sales for the iPhone. While iSuppli has not collected historical information on this topic, it’s likely that the s peed of the iPhone ‘s rise to competitive dominance in its segment is unprecedented in the history of the mobile-handset market (Marsal ,2007 . In short , almost unexpected rise in demand of Apple iPhone was unaccounted by many experts , including of which are some of its competitors . The same research firm also noted that survey revealed that almost 57 of iPhones (bought in July ) were purchased by US consumers . Most of the consumers are aged 17-35. Almost 52 of the consumers of this product are male, and about 48 are female, revealing an almost equal propensity to consume for the product among the sexes. Added to that, iSuppli noted that 62 of the consumers of the product are actually college graduates or those with graduate courses . Nonetheless , the same research firm noted that â€Å"some of the iPhone ‘s success in July can be attributed to pent-up demand following months of hype (stagnant demand). Real proof of success will come in the coming months as demand patterns stabilize (Marsal, 2007). This prediction was almost accurate when the demand for iPhone was almost rising at 8 per month (month of June). Cost Apple's Iphone 4 smartphone, for which it's charging at least $500 at retail, is built of parts that cost $187. 51, according to market research firm Isuppli. According to the tear-down the most expensive part of the Iphone 4 is the 3. 5-inch LCD screen which costs $28. 50. Isuppli thinks that the Iphone 4 screen must be identical to one made by LG. It seems that Apple has managed to keep its parts cost at about $170 to $180 per unit. Isuppli's cost estimate doesn't include labour, shipping, advertising, software development or patent licensing. The cost is based on a 16GB version of the Iphone 4 but the low costs of each componant are fairly staggering. The Apple A4 processor reportedly is made by Samsung Electronics for $10. 75 per chip. Isuppli thinks that Geneva-based STMicroelectronics supplied the gyroscope chip at an estimated cost of $2. 60, as well as an accelerometer chip used in previous Iphone versions, which has an estimated cost of 65 cents. Other component suppliers named by Isuppli include Skyworks, a wireless chipmaker and TriQuint Semiconductor. In 2009, Isuppli estimated that the components and materials used in the iPhone 3GS cost about $179. Since then Isuppli thinks that the materials costs for that model have fallen to $134. Thus the Iphone 4 costs a bit more to make than the earlier model. Of course this means that Apple's gross margin on the hardware in Iphones is extremely high. The actual price margin gets obscured by the fact that AT&T heavily subsidises the phone in the US for about what it costs to manufacture. However the real winner is Apple, which does not have to pay for the cost of manufacture and still takes home about three times Iphone 4 production costs, on average. Pricing Because the iPhone price is entirely set by Apple, it makes an interesting case study on how much the price of technology drops over time. The official price of the iPhone periodically drops, as shown in the table below. But, there are no sales and a new iPhone is never sold for less than the official price. (There are occasionally sales on the refurbished iPhones for example on black Friday the refurbished 3GS was sold for $50. 00 instead of the usual $150. 00. )   Finding historical street price data is harder than historical MSRP data. For the iPhone both prices are the same. The table showing the historical price is included below. 1st Gen 4GB| 1st Gen 8GB| 3G| 3GS 16GB| 3GS 32GB| 29 June 2007| $499. 0*| $599*| N/A| N/A| N/A| 5 Sept 2007| Discontinued| $399| N/A| N/A| N/A| June 2008| N/A| N/A| $199| N/A| N/A| June 2009| N/A| N/A| $99| $199| $299| VIII. Pure competition, Monopolistic Competition & Oligopoly Apple Inc. planned to begin producing this year a new iPhone that could allow U. S. phone carriers other than AT&T Inc. to sell the iconic gadget, said people briefed by the company. The new iPhone would work on a type of wireless network called CDMA, these people said. CDMA is used by Verizon Wireless, AT&T's main competitor, as well as Sprint Nextel Corp. nd a handful of cellular operators in countries including South Korea and Japan. The vast majority of carriers world-wide, including AT;T, use another technology called GSM. With Apple developing a phone with CDMA capability, its exclusive U. S. arrangement with AT;T dating to 2007 appears set to end. Verizon Wireless, owned by Verizon Communications Inc. and Vodafone Group PLC, declined to comment. An AT;T spokesman said: â€Å"There has been lots of incorrect speculation on CDMA iPhones for a long time. We haven't seen one yet and only Apple knows when that might occur. † Apple declined to comment. For AT;T, the Apple relationship has been crucial, helping to make the carrier the U. S. leader in lucrative smart-phone market share. According to comScore Inc. , AT;T has over 43% of all U. S. smart-phone customers, compared with 23% for Verizon. These customers are especially attractive because they generally pay higher monthly rates for data plans. For several quarters, AT;T's growth has come almost single-handedly from the iPhone. In the fourth quarter of 2009, the carrier said it activated 3. 1 million new iPhones. In comparison, it counted only a net total of 2. million new subscribers as some customers moved from other phones to iPhones. Now that a new Verizon-compatible iPhone appears to be on the horizon, Digits looks at what Apple can do to win over mobile business users, particularly from RIMM's BlackBerry market. The people briefed on the matter said the upgraded GSM iPhone is being made by Taiwanese contract manufacturer Hon Hai Precision Industry Co. , which produced A pple's previous iPhones. The CDMA iPhone model is being made by Pegatron Technology Corp. , the contract manufacturing subsidiary of Taiwan's ASUSTeK Computer Inc. said these people. One person familiar with the situation said Pegatron is scheduled to start mass producing CDMA iPhones in September. Other people said, however, that the schedule could change and the phone may not be available to consumers immediately after production begins. Representatives of Pegatron and Hon Hai declined to comment. Verizon has publicly stated its interest in the iPhone, but people familiar with the situation said Apple originally decided against developing a phone for Verizon to keep its development process simple, since the technologies are incompatible. Verizon also is upgrading its network to a higher-speed technology, so Apple has said it believed CDMA was a short-term technology. Apple later changed its mind as it realized Verizon's upgrade would take longer than expected, said people familiar with the situation. Making the iPhone available through Verizon, which has over 91 million customers, as well as potentially other CDMA carriers could open up a significant new market. In 2009, iPhone sales globally rose 83% to 25. million, far outpacing the 20% to 25% growth in smart phones sales overall, according to Bernstein. But since Apple already dominates smart-phone sales through existing partners, â€Å"sooner rather than later, Apple is going to have to look to find incremental distribution,† which implies a monopolistic competition between all smart phone sellers, said Bernstein analyst Toni Sacconaghi. He estimates Verizon could help Apple nearly double the number of iPhone users in the U. S. Some advantages that iPhone has comparing to other smart phones are: 1. Pod: iPhone is a not just a phone it is widescreen iPod with touch controls that lets you enjoy all your content — including music, audiobooks, videos, TV shows, and movies — on a beautiful 3. 5-inch widescreen display (Nokia N95 only has a 2. 6 inch screen). The N95 does have a good media player, however with all the iPod features and 4 GB / 8 GB space, it makes the iPhone the best music phone. 2. Advanced Safari browser: iPhone lets you see any web page the way it was designed to be seen, then easily zoom in by simply tapping on the multi-touch display with your finger which will change mobile browsing for the good. . OS X: All the power and sophistication of an advanced operating system that gives you access to true desktop-class applications and software, including rich HTML email, applications such as widgets, Safari, calendar, text messaging, Notes, and Address Book etc. iPhone is fully multi-tasking, so you can read a web page while downloading your email in the background. This software completely redefines what you can do with a mobile phone. 4. User Interface: iPhone features the most revolutionary user interface since the mouse. It’s an entirely new interface based on a large multi-touch display and innovative new software that lets you control everything using only your fingers. 5. Visual Voicemail: The iPhone lets you select and listen to voicemail messages in whatever order you want — just like email using a revolutionary new feature called the visual voicemail. IX. Conclusion Analyzing as managerial economics students, we can conclude that although the current methods and techniques are serving us well in analyzing the current market situation, there will be new techniques emerging in the future with global changes occurring at leaping speeds. What is essential is for us to grasp is that the theory is flexible with these changes and that it can be shaped or rounded to be applied to any market situation analysis. The content and subjects we learned in this course are nothing but the bedrock tools that any manager needs to know and use in his daily life in order to forecast revenues and demand, analyze current markets and evaluate his company’s stance regarding his competitors. X. References ttp://theblogpaper. co. uk/article/business/31may09/price-elasticity-demand-iphone http://news. cnet. com/8301-13506_3-20064223-17. html http://www. bbc. co. uk/news/business-10725887 http://www. bbc. co. uk/news/uk-13284156 http://m. ibtimes. com/microsoft-windows-phone7-google-android-apple-157595. html http://www. reuters. com/article/2011/06/03/us-rim-research-ubs-idUSTRE7523PP20110603 www. newyorktimes. com www. wallstreetjournal. com

Corn Coffee Essay

Corn ranks second to rice, not only in terms of area devoted to its production but it has been a staple food of about 20% of the total population of the Filipinos. Aside from this, the green corn, boiled or roasted, is a popular snack food and may also be cooked a vegetable or soup. Other by-products of corn include corn flour and syrup, sugar and oil. In terms of nutritive value, corn is richer source of vitamin A than polished rice. It contains high amounts of minerals such as calcium and phosphorous. Moreover, it is also a source of starch derivatives for oil, fibers and other industrial uses. Corn is raised as source of food and food products for people, livestock feed, and industrial products including ceramics, explosives, construction materials, metal molds, paints, paper goods, textiles, industrial alcohols, and ethanol. Corn is now also used to produce a healthy coffee as people nowadays are health conscious. Since corn coffee was introduced in the Manila market by the farmers of Sumilao, Bukidnon, further study about corn coffee in Region III (Central Luzon) was made since corn is abundant on the said region. Distribution of questionnaires and analysis activities conducted to determine the frequency distribution of corn coffee in the market because this is not the first to introduce corn coffee in the Philippine market especially in Manila. On the data gathered, 98% of the respondents are coffee drinkers, majority of them are young professionals, 91% of them have no knowledge about corn coffee, 88% are willing to try corn coffee and 22% have no idea what would corn coffee would taste like. With this data, Le Maiz come up on marketing strategies how to introduce and expand the corn coffee market in Region III and NCR. Corn Cafe is an alternative to coffee beans that is rich in nutrients that coffee beans can not provide. The company’s objective is to fit in and adapt to the people’s taste and preferences as well as offering diverse kinds of nutritious products. Effective marketing program and strategy would be made in order to meet the established objective. The marketing strategies will consist of flyers, radio and newspaper advertisements, trade fairs, vis-a-vis contact with customers. 10% of the gross sale will be allocated on marketing the product. On technical aspect, the production of corn coffee is simple, healthy and all natural that it has only one ingredient, which is the corn alone, no additives and a healthy alternative of drinking coffee. Preparation of corn before roasting is the first step in making our product, roasting, grinding/ pulverizing are the main activities in making corn coffee. Packaging and putting into the storage were done before putting on the distribution channel like our selling area, inner-retail coffee stands as well as supermarkets within our designated market. On this study, corn coffee production started January 2011. Corn was purchased at the average of Php15 per kilo. The sum of 15,600 kilograms of Corn were purchased during 2011 while on 2012 to 2015, 12,480 kilograms of corn were purchased. Also, part of Raw Materials inventories are Packaging Slip and Sticker. 60,000 pcs. were purchased respectively. Around 1% has incurred in transportation cost and other miscellaneous expense. Purchases Return and Allowances is expected to be 1% of Gross Purchases while Purchase Discount will be 2% Net of Freight In. The production of coffee is continuous process thus leaving no goods in progress beginning or ending. This is in line with company’s policy to keep the product fresh and all natural. Sales Return and Allowances is expected to be 1% of Gross Sales. Sales Discount of 2% is given to cash buyers but only 5% of Gross Sales will avail the discount. Operating expenses is divided into 2 category; Distribution Cost and Administrative Cost. For Distribution cost for 2011( % of Gross Sales ); Traveling 1%, Advertising 5%, Delivery 10% and Depreciation expense based on Straight Line Depreciation of 5yrs. For Administrative cost ( % of Gross Sales ); Officers’ Salaries, 3 partners assumed as managing partners with annual salary of 96,000. 00 each. The Pre-operating cost Php 9,454. 00 has been incurred which include DTI registration, Dole registration, BIR Fee, SSS registration, Police Clearance, Barangay Clearance and Business Permit issued by Tarlac City Hall. Office supplies is 10%, Depreciation Expense ( Straight Line Depreciation of 5 yrs. ), Lease Payment ( 40% to Administration ), other expenses is 1%. On socio-economic aspect, we have shown the significance of our business and its contributions to the society. Its share to community and to its people is to create employment and thus improving the standard of living of people in the community. It can also help the community development by way of paying taxes in the government. It is through taxes paid by businesses and individuals that the government funded its projects such as roads, bridges, and community development. Lowering of prices of competitors to compete with the product in order to maintain the customers. We could also help the people in community by utilizing local materials which is very abundant in the province. We can motivate farmers to grow corn and not just corn but corn of good quality. Our business can be the pride of our province since it’s inclined with the program of the Department of Trade and Industry which is the â€Å"One Town One Product†. Lastly, the Le Maiz proponents chose partnership as the form of organization. Aside from the six (6) partners, we will be hiring three (3) employees to help to produce and market the healthy and nutritious coffee. Le Maiz with a mission, to provide coffee drinkers quality products, quality service, affordable prices and a healthy lifestyle. Competent and responsible employees will be hired for the success of the company. The company shall also continue working for innovative and efficient ways of achieving the company’s goals. The company’s vision are to be number one (1) corn coffee in the Philippines; to expand not only in Central Luzon and NCR but throughout the country as well; to build own production and distribution facilities and to adopt new technologies and methodologies. The company decided a hierarchical type of organizational chart. The capitalist partners will act as the general manager and three of the six (6) partners will be managing partners whom will receive monthly salary as well as the three (3) employees. On Administrative Department, the Administrative Officer/ Purchasing Officer will be the crucial person in the organization, he assumes the full control on the organization’s activities and is responsible for all decisions undertaken by the organization, responsible in monitoring and managing the production of corn coffee, counter checks the financial position of the organization, handles all personnel and the daily business activities, purchase ordered and will deliver on time to the production area and hold the budget for purchases of raw materials and shall provide summary or report of the used and unused funds. On Sales Department, the Marketing Officer/ Salesperson is responsible for the all related selling activities, product development, packaging, proposes new ideas for improvement and replacement, communicating with suppliers of materials and know the current trend in the market. For the Inventory Officer, he is responsible in listing down sales, the used materials and finished products. Must be alert, with good communication skills, trustworthy and diligent. The three (3) employees that will work for the company were the Machine Operator, responsible on the control of the machine in producing corn coffee, Packager, for packaging of the finished products and Delivery Man, he will act as the driver and responsible in delivering the finished products to our target markets.

Active Shooter, National Security Term Paper Example | Topics and Well Written Essays - 2500 words

Active Shooter, National Security - Term Paper Example An analysis of the situation shows that the University of Northern Florida (UNF) sits on more than 1400 acres of land and has a student population of approximately 60,000. The UNF has multiple campuses. There is a campus police unit located within the University who patrol the university grounds at regular intervals, though they are unarmed. There is an ongoing basketball game at the 9500 seat university arena with the campus police providing security. Shooting erupts at the spectator section in the arena during which approximately 15 individuals suffer gunshot wounds and several other individuals are critically wounded. The shooter escapes from the arena in the melee. Prior to the game, a note was found in the men’s restroom that intimated at a possible attack within the UNF compound. A security meeting, held after the note had been found but prior to the basketball game commencement determined that the university security measures were adequate to handle any potential securi ty threats. The first safety action would be to secure the incident area, in this case the university arena in which a basketball game had been proceeding when the shooting occurred. Firstly, the area is secured by locking and barricading all entrance and exit points into the arena. In this case all available materials can be used to block the entrances, for instance bleachers, tables, and other furniture. This action is conducted to ensure that the shooter(s) do not get access to the incident area, or if they are in the incident area then they are contained. Secondly, all persons in the incident area are to be moved away from clear lines of sight and positioned behind barricades and solid objects. This removes them from the shooter(s) possible line of sight and shields from bullets. Thirdly, the entrances are barricaded if the assailant enters or leaves the incident area. Finally, the persons in the incident area can seek a safer refuge if they

Wealth disparity and effects of long-term Unemployment on the United Essay

Wealth disparity and effects of long-term Unemployment on the United States Economy - Essay Example It is important to undertake a critical analysis of unemployment in respect of the article to establish the effects this has on the entire economy of US and any other nation.This article explores the varuios employment related economic issues. It is also importasant to note that the author gives a vivid description of the consequences of unemploymdent and the indirect challenges it will pose on the wealth disparity among citizens. 1.0 Introduction Unemployment is a situation where a person is able and willing to perform tasks or work but is unable to find a job. However, there is no clear definition of long-term unemployment. economists define a period of six to twelve months as a long-term unemployment period. This is when an individual is unwillingly unemployed. Several factors lead to long-term unemployment; some of these factors are facilitated by economic changes such as economic recession, an individual not willing to work or dynamic technological changes (Hollander,2011,45). P reviously, the United States’ labor market had short periods of unemployment for most workers who were jobless; they would be easily absorbed into the labor market. Even though jobless workers especially the elderly had a long unemployment period, the level of long-term was less comparing to other countries. The rise in the long-term unemployment and unemployment rates has severe human, social, and economic costs. Wealth disparity, also known as wealth gap or inequality, refers to state of uneven distribution of financial assets among citizens of the United States of America. Wealth includes automobiles, value of homes, savings, investments and businesses. Those who have a great deal of financial assets have primarily acquired them by appreciation of fiscal portfolios. Hence, financial wealth involves mutual funds, stocks, as well as other investments. Thus, there is a greater wealth inequality than basic net worth disparities (Lubik, 2010,20). Statistics show that the top te n percent possess eighty percent of all financial wealth and the bottom ninety percent only hold twenty percent of all financial assets.Employment plays a vital role in determining the amount of economic wealth hence the observed disparity. 2.0 Discussion Unemployment is risky to the country’s economy and to other countries worldwide as well, with some costs of unemployment being levied to the society such as exchequer cost due to unemployment and social cost. While the short term unemployment may or may not have implications on an individual, long term unemployment may have a demoralizing effect to an individual. Long-term unemployment causes negative effects to individuals. Some of the most common effects include financial difficulties, health related diseases, psychological problems, boredom, idleness, losing close friends and relatives and eventually depression. Severe long-term unemployment results are mostly seen in the disadvantaged in the society. The unemployed are w asted resources, and they also waste resources meant for humanity. It is a life full of unhappiness and sorrow as unemployed individuals live in suffering and poverty; economically, human labor is devalued. The social results from unemployment lead to rise of rebellious groups, riots, family breaks, divorce and some cases of death (Hollander,2011,45). The impact of the recession shows in the United States and many countries where long-term unemployment majorly impacts the male. During the recession, construction and manufacturing industries were affected by unemployment. In the United State wealth, ownership has been concentrated in the small minority population due to their well grounded employment status. The minority

Graduates vs undergraduates Essay Example | Topics and Well Written Essays - 500 words

Graduates vs undergraduates - Essay Example Today, more than ever before nursing professionals are faced with challenges like catering to a global population, from diverse backgrounds and dealing with a whole host of problems that such situations throw up. Besides, with the advance of technology and an increased life span, the adult population with chronic illness makes up a significant percentage of today’s patients. In addition to healing the sick, nursing professionals today have to shoulder the added burden of the changing needs of their profession in order to deliver good and cost effective care to their patients. Holistic care that is based on the physical, mental and emotional well being of the patient is the goal of every nursing professional, whether graduate or undergraduate. A health care system, needs a human interface in order to translate a health care plan and maximize its benefits to the patient. This is one of the important roles carried out by the nursing profession. Besides delivering good and cost ef fective health care, the nursing professional must also be capable of focusing on prevention rather than on cure. Understanding advances in technology and using this knowledge to educate communities on ways to lead healthier lives is an important aspect of the entire nursing profession.

Contemporary Issues In Business And Management Essay - 1

Contemporary Issues In Business And Management - Essay Example Recently, major proportion of the population shares their personal information through online. Data like medical records, credit card purchases and other important materials are recorded in several significant powerful databases. A contemporary issue can be defined as the issue that has a specific relevance to the present time. It can lead to several management problems and challenges, such as ethical issues, corporate and social responsibility issues that can affect the business performance of the organization (Rosenfield, 2006, p.43). The leading firms around the globe are trying to capitalize on the opportunities that have been established and reformed due to globalization and advanced modern information technology. Now-a-days, the business organizations are trying to bring innovation in their business process in order to achieve competitive advantages within the competitive global market. Facebook is the largest global social networking site. Over 500 million global people are co nnected with each other through this social networking site. ... However, the study will reveal Facebook’s several contemporary issues associated with the business ethics and social responsibility management. Analysis of Several Contemporary Issues The organization argues that there is no wrong in the social media promotional strategy. According to the organization, they already have recommended on their site to check in security settings before liking any page or status. The Facebook users are aware of the Facebook advertising activities (Mullerat, 2011, p.149). Since the year 2004, the organization has made numerous controversial moves related to privacy. The study will discuss and analyze several trends and prominent privacy incidents that have occurred over the organization’s lifetime. Permissive Defaults The organization used to select certain default privacy settings for the new initial sign ups. These settings are generally customizable, but several users of Facebook never bother to adjust the privacy settings. At the initial stages, the website has default privacy settings. At that point of time only college students were allowed to register as the website users. The organization has been able to increase its customer base in global market by implementing several unique business strategies (Poynter, 2010, p.253). A complaint was raised against Facebook that the organization is trying to sell the personal information and data of its users to other marketing organizations against money. The Advertising Standards authority has disclosed a code of advertising that has included the social responsibility clause. It aims to restrict the advertisers not to break the spirit of the rules. Initially, the organizations around the globe were posting free advertisements.

Impact of Class Size on Students' Achievement Thesis

Impact of Class Size on Students' Achievement - Thesis Example Since education is the understanding, wisdom and the information that any individual elucidate and illuminate in order to become proficient in a particular area of interest. However, there are abundant of students especially in the underdeveloped countries who do not even get the opportunity to get the elementary or primary education due to their poor financial statuses. Whereas, the developed nations are providing the students with quality education that helps them in making them live a better and standard life with the power of knowledge (Saracho, 2002). In view of the fact that education and learning is a critical and vital process that determines the future of any individual and how the person will shape his entire life with the knowledge that he will get. Therefore, education is one principal factor that cannot come under ignorance. Nevertheless, like any other field, the domain of education also has numerous problems that the students may encounter in their academic lives. Howe ver, the problems may come across with the teachers as well either with the administration department or in coping up with students (Saracho, 2002). By means of the rising population in the modern world in conjunction with the significance of education, the design, plan, and initiative for the development and enhancement of academic programs have escalated the proportion of students for each class. There are several reasons due to which elementary schools tend to have larger number of students per class without considering the fact that this is making a huge impact on the students’ accomplishments and achievements in their academic careers (Jepsen &Â  Rivkin, 2002). The relationship of students’ achievements caused by the class size has come under numerous researches and exploration since couple of decades; the aftermaths and findings have elevated this matter of subject into many discussions and arguments. In addition, the arguments provide the evidence for the fact that how the suggestions can contribute and influence to the improvements of the students’ performances. Moreover, the suggestions also propose the idea that how all students can get individual attention that can lead to a positive impact on to their achievements (Jepsen &Â  Rivkin, 2002). One of the leading obstacles that are under debates and arguments in the current times that catch the attention of one’s mind is the size of the class that the students study in, as it is one of the imperative subjects that give rise to the problems in the field of education. It has come under surveillance that the class size has a direct impact where it persuades on the learning and accomplishments of the students. In addition, the class size plays a great deal of value and prominence in the essence of learning and education that a student acquires and gains (Franciosi, 2004). Another query arises with the class size concern is that whether the students tend to perform better, gain additional and supplementary knowledge and have high level of achievements and success? This question is in comparison to the students who study in class where there are more students and

Case Study Report Essay Example | Topics and Well Written Essays - 3000 words - 2

Case Study Report - Essay Example Multinational companies have realised that human resource management is important as it provides global strategies that would help in managing the workforce, thus gain success and a significant market share in foreign countries (Shah et al. 2012: 28). This paper will explore globalisation and internationalisation of business firms, the structures and strategies of multinational companies and how they influence human resource management. Globalisation is a concept that has been in existence for many years. Multinational corporations emerged as a result of globalisation. In order to ensure that their businesses run smoothly, multinational corporations have developed different strategies in line with their different structures. These strategies influence human resource management to carry out different activities regarding to the recruitment, selection, training and performance of the workforce. These strategies bring some benefits and limitations to the organisation. This paper will discuss the preceding issues relating to multinational corporations and human resource management (Barber and Alegre, 2010: 11). The term globalisation has different meanings in reference to different contexts, and in this situation it refers to the quick, uninterrupted inter-border flow of technology, services, money, information, goods, ideas, and cultures all over the globe. Through globalisation firms are able to operate in many countries, utilising local and foreign labour, capital and technology, marketing, management skills and therefore, becoming Multinational corporations. Firms internationalise to look for markets, exploit firm-specific advantages and to gain access to various factors of production, labour being a key factor. Multinational corporations utilise local and foreign work forces, therefore, require an effective human resource management that will successfully manage the workforce and ensure productivity. Multinational

Incident Command System Essay Example | Topics and Well Written Essays - 750 words - 1

Incident Command System - Essay Example Common terminology pertains to the use of standard terms during disasters where every responding personnel understand one another because they have the same jargon or language which describes organizational functions, facilities, resources and position titles (FEMA, n.d). Modular organization is a description of the incident command organizational structure that is top-down in style. This kind of organizational structure is flexible to accommodate the magnitude and difficulty of the disaster. Management by objectives is the development of goals during the operation process that is practical, measurable and achievable; this is in relation to having reliance on an incident action plan (IAP) that provides means of communicating operational and support objectives (FEMA, n.d). Chain of command and unity of command entails reporting to one supervisor or head only to avoid overlapping of orders that may come from various heads or supervisors at different levels. Unified command on the other hand allows multiple agencies with different functions to work as a team irregardless of respective agency influence and accountability. Manageable span of control sets a limit to the number of personnel a supervisor can handle in an ICS, which is three (3) to seven (7) people only. Predesignated incident locations and facilities are the sites established to house operational and support facilities that can be found within the area of the disaster or incident. New locations or sites can be made as needed. Resource management includes the overall resources needed within the disaster vicinity in terms of ordering, tracking and recovery (FEMA, n.d). Information and intelligence management refers to the procedures for the management of information related to the incident. Integrated communications is the process of establishing a standard and interoperable communication system within the ICS. Transfer of command pertains to the transfer of command responsibilities that includes proper briefing of all pertinent information so that the operation can go on efficiently (FEMA, n.d). Accountability depicts following the standard operating procedures needed within an ICS. This includes reporting to receive assignments based on protocol by the incident commander; followed by adhering to the outlined IAP where every responder will be assigned under one supervisor only, who will also account for the changes in resource status. And last but not the least is mobilization where needed personnel and equipment at a disaster site will respond only as needed and directed (FEMA, n.d). As an incident commander for the disaster that occurred in Japan, I will first and foremost set up an appropriate location for the incident command center. Then I will make a preliminary estimate of the number of people and the type of facilities as well as equipment that is needed on site. Before any actual operation starts all responders will be given a list that contains common words or terms to b e used in communications. After which, I will assign all responders to their respective supervisors limiting three people only under one supervisor who will give their specific duties to perform. As the operation progresses, I will collate all

Poetry and War Essay Example for Free

Poetry and War Essay How does Owen explore the themes of war through the power of his poetry? Written by: vdg How does Owen explore the themes of war through the power of his poetry? Answer Q Owen expresses the themes of war through the unique power of poetry. Both the mental and physical brutality of war is emphasised in the poems, â€Å"The Send off,† â€Å"Anthem for doomed youth† and â€Å"Spring Offensive,† furthering the responder’s understanding of a soldier’s life on the western front. Owen employs various poetic devices such as imagery, symbolism and sound techniques, and powerful language features, together helping to convey the different aspects of war, such as the themes of ___ (maybe 4 main themes). 100 words on extract, linking to q Wilfred Owen’s, â€Å"The send-off,† illustrates the consequences of war and reveals its cynical, secretive nature through the use of poetic devices. The title, â€Å"The Send-off,† depicts two different images about the nature of war. â€Å"Send-off† could be interpreted as a farewell to soldiers, in the hope of their return, or metaphorically could convey their literal fighting till death. The composer’s use of symbolism, â€Å"darkening lane,† portrays the sinister side of war, while the alliteration, â€Å"grimly gay,† creates irony. This depicts the soldiers’ hidden fear of going into battlefield, compared with their initial excitement at â€Å"send-off. † The composer also emphasises the fact that the â€Å"typical† send-off is an emotionless, mechanical procedure for many military personal, rather than a cheerful experience. Owen’s choice of diction is used to convey the horrors and themes of war. The metaphor, â€Å"Their breasts were stuck all white with wreath and spray. As men’s are, dead,† reinforces the concept of doom and sacrifice during war, through the onomatopoeia of â€Å"stuck† and the negative connotations associated with the word â€Å"dead†. Diction is used, â€Å"Dull porters watched them, and a casual tramp†¦staring hard, sorry to miss them†¦,† to demonstrate that most onlookers have a lack of emotion towards war. The rhetorical question, â€Å"Shall they return to beatings of great bells in wild train-loads? ,† conveys the uncertainty of war, where a soldier’s fate is unknown to many. The composer’s use of repetition â€Å"A few, a few, too few for drums and yells†, conveys a sense of loneliness, as there are only a handful of soldiers who have returned home, depicting the horrors of the aftermath of war. The composer’s use of imagery, â€Å"May creep back, silent†¦up half-known roads†, portrays the returned soldiers’ disillusioned state of mind, effectively giving the responder an insight into the consequences of war. The composer’s successful use of personification in this poem, â€Å"Then, unmoved, signals nodded† and â€Å"a lamp winked to the guard†, illustrates the secretive and cynical nature of war, and presents the mental assumptions about a typical war. Personification is also used, â€Å"So secretly, like wrongs hushed-up, they went,† to communicate the soldier’s unfair treatment at the hands of the government, while the phrase â€Å"they were not ours†, alludes to the soldier’s lack of belongingness. LINK TO Q Another poem, in which Owen uses the power of poetry to convey the themes of war, is â€Å"Anthem for doomed youth. † The title, â€Å"Anthem for doomed youth,† acts as an extended metaphor for the sacrificial and improvident consequences of war. Owen uses religious imagery, â€Å"candles† and â€Å"choirs†, alluding to the funeral ceremonies associated with such religious symbols, while also depicting the inhumane nature of killing during the war. â€Å"Doomed,† conveys a pessimistic tone and creates an image of entrapment. The opening rhetorical question, â€Å"What passing-bells for these who die as cattle? †, illustrates the dehumanisation of war through the use of animal imagery. Moreover, the composer’s repetition, â€Å"only,† highlights the insufficient homage paid to death. Owen also employs alliteration and symbolism to convey the themes related with war. Alliteration, â€Å"rapid-rattle†¦,† is used to assist the responder’s knowledge of the nature of death, and heightens our aural and visual senses to these disorientating images. Another example of alliteration, â€Å"sad shires†¦,† conveys the after effects of war and its devastating consequences. Owen also tries to convey the horrifying nature of war through his vivid use of symbolism. Religious and church symbols such as â€Å"bells† and â€Å"choirs,† denote religion as a sanctuary from the horrors and evils of war. Imagery, â€Å"What candles maybe held†¦shall shine in the holy glimmers of good-byes†¦Ã¢â‚¬ , transforms the mourner’s candlelight into tears and the â€Å"pallor† of mourners faces are compared to a â€Å"pall†, contrasting the different funeral images in war and peace. Also, the connotation of â€Å"each slow dusk†¦Ã¢â‚¬ , reinforces the cycle of life and death. It is evident that through the composer’s power of poetry, various themes been conveyed about war, thus heightening the responder’s understanding of the war experience. SUM UP THEMES In the final two lines of the poem, the composer makes successful use of imagery together with alliteration to convey the horrors of war, â€Å"Each slow dusk a drawing-down of blinds,† revealing the end for many soldiers’ lives. LINK TO Q Through the poem, â€Å"Spring offensive†, the composer conveys the various themes about war, through contrast, imagery and simile. The positive connotation, â€Å"Spring,† reinforces the idea of rebirth and renewal, which is juxtaposed with the destructive connotations associated with â€Å"offensive†. Owen awakens the audience through the harshness of the sound â€Å"f† in the alliteration, â€Å"fearfully flashed†. In so doing, the composer provides an ominous warning on the battlefield. Owen’s vivid use of death imagery, â€Å"Knowing their feet had come to the end of the world†, portrays a rather chilling and detrimental perspective of the battlefield. Owen continues to mix the ideas of war and nature in the third stanza. Here the composer effectively juxtaposes the beauty of â€Å"buttercups† with the men’s â€Å"boots,† to emphasise war’s unnatural repulsiveness. Owen’s use of simile, â€Å"clutched to them and to them like sorrowing hands†¦,† conveys mother nature’s unwillingness to relinquish the soldier’s lives. Simile is also used, â€Å"like a cold gust†, to depict the lack of warmth and quiet beginnings of confrontation, as war commences in the fourth stanza. Owen also successfully uses vivid war imagery to convey the various concepts of war in â€Å"Spring-offensive† and thus portraying the horrors present in war. The imagery, â€Å"So soon they topped the hill, and raced together†¦instantly the whole sky burned with fury†¦,† illustrates the dark and frightening nature of war amongst this peaceful physical environment, while the unity, â€Å"together,† highlights that the men go into battlefield as a group. Finally, the composer’s use of the rhetorical question â€Å"Why speak not they of comrades that went under? †, conveys the ghastly and silent nature of the battlefield, as the battle nears to an end. LINK TO Q Consequently, it is evident Owen has been able to integrate various poetic devices and language features into his poems, to reveal numerous ideas within war. Owen has been able to successfully convey the horrors of war through his power of poetry and his influential words. ANSWER THE Q Where ever possible, LINK TO Q!!! MEMORISE â€Å"The Send-Off† is a poem written about WW1 soldiers leaving their homes to go off to war. It is set in a train station where a soldier is watching the new recruits boarding the train. You can tell it is written by an on looking soldier because in line 12 he says, â€Å"They were not ours†; where as previously he had been referring to them as â€Å"them†. In â€Å"The Send-Off†, Owen conveys his feelings about the war and the young soldiers going off to die. You can tell he has a very pessimistic attitude to the likelihood of the soldiers surviving. You can see this from his continual references to death, â€Å"Their breasts were stuck all stuck with wreath and spray/As men’s are, dead†. To convey his emotions and foretelling further he uses a range of language. The actual words that he uses are quite simple, but he uses many effects to create imagery. In line 3, Owen uses the oxymoron, â€Å"grimly gay†, this gives the impression that the soldiers know what is going to happen to them and they are scared, but they put on a brave face anyway so as not to upset their families, each-other and also, if they don’t admit their fear to themselves, then maybe it will go away. In the poem there is often para-rhym, for example, â€Å"They were not ours†¦who gave them flowers†. There is more often though just a normal rhyme. This rhyme scheme seems to have no particular pattern; it will start a pattern, and then change it. It starts off A, B, A, A, B, C, B, C, and carries on in the same sort of irregular patterns. Maybe Owen is trying to convey the mixed, uncertain feelings and lives that can change so quickly, with a mixed, uncertain rhyme scheme. This is the same with the rhythm; I think this is to represent, instead of the regular, ordered marching step that the army is renowned for, there is disorder and chaos. I think that he is trying to convey the truth of war. Analysis of The send off 2006-09-10 Added by: John Terry This poem actually conveys a message to the readers. That war is not as glorious and honourable as it is always portrayed as. The pun in the title also shows this. The send-off could mean two things. Firstly, it could mean that the soldiers were being sent off to war. However, it could also mean that the soldiers were being sent off to their deaths. This emphasizes the fact that war actually is not what it is portrayed to be. It is not glorious and honourable to fight in war but the people and soldiers going through it are actually filled with grieve and most soldiers do not survive in war. The pun has brought across this message to the reader. WAR IS not an honourable and glorious thing to be in.

Roll of thunder hear my cry Essay Example for Free

Roll of thunder hear my cry Essay Mildred Taylor writes about lots of families, some are successful and some are not. She writes about poverty families have to endure, discipline that they inflict on their children, loyalties, love and care. She contrasts poor families and rich families very well. She writes about poverty mainly in the black families although she does mention poverty in white families but very briefly. The Logans are good disciplinarians and know when to discipline their children and when not to and when they have been promised a beating, they will get it. An example of this, is when the Logan children go to the Wallaces store. As they had been warned not to go there, they got their beating. Even if it was a little late in the coming. We should have known better. Papa never forgot anything. She writes the book in the first person from the point of view of the nine-year-old girl Cassie, who in some ways is quite mature for her age but is still learning about racism and the unfairness of life. The only thing that she is sure about, is her absolute loyalty to her family, which remains constant throughout the book. The Averys a not very successful family, are one of the poorest black families. Mr and Mrs Avery have many children and not enough money. They sharecrop on the Grangers land and as they do not have much money, they also do not have money to spend on medicine, which as a result means that Mr and Mrs Avery remain in a constant state of illness. This of course does not help matters and contributes to the lack of discipline in their childrens lives. TJ one of their sons is a perfect example of this, they should have taught him the difference between and wrong and they should have taught him respect. Taylor attributes many of his problems to weak parenting, a thought expressed by mama when she says, Its just that the boys gotten out of hand and doesnt seem like anybodys doing anything about it. When he looses his friendship with the Logan children he finds friendship in RW and Melvin Simms. They are not ideal friends and laugh at TJ behind his back. As a result of this friendship he indirectly sends the whole Avery family into turmoil. Together the three boys conspire to rob the mercantile belonging to the Barnetts. The Simms brothers managing to outwit TJ, blame the whole affair on him and thus bringing the most of the white, black hating community to the Averys house. There, they assault Mr and Mrs Avery and TJ ends up in jail. RW and Melvin Simms are the eldest of the Simms children. All the Simms share the view that white people are better then black people. The exception is Jeremy Simms who doesnt really like his siblings, he also does not share the same views that they hold and he is the outcast. He even sleeps in a tree house, to get away from his family, which proves his alienation from them. I just climbs in my tree and its like going into another world. He is friends with the Logan children and walks with them on the way to school, the only white boy to do so. For being nice to the Logans and generally liking black people he gets a beating from his sister Lillian Jean who is just like the rest of her siblings and father. Maybe because of the fact that there is no mother figure to guide them that they feel they should follow their father in every way. But whatever the reason they are quite a dysfunctional family. The Jamisons are partly to blame for TJ not finding himself killed. Mr Jamison is a lawyer and has strong family roots in the community. They have no children and are completely not racist. They are the minority who genuinely care about people. They are comfortable and they hold quite an important place in society mainly because Mr Jamison is a lawyer. They become ostracized when Mr Jamison tries his best from preventing TJ from getting murdered even at risk to his own life. we just likely to take care of ourselves a nigger lover too tonight. The Logans are successful as a family because they are very strong family unit. They are completely loyal to each other and they all love and care for each other. This love for family and holding family as a priority has been instilled in the children quite clearly. They are just about the only black family to have any type of collateral whatsoever. This is because they are the only black family to own their own land. And most other white landowners resented that. Harlan resents the fact that you wont sell it. Because of their collateral they also have a lot of independence that the others do not have. Even though the Logans are poor, they are not desperate like the Averys who can barely afford to buy their clothes. But they have had to branch out of Mississippi to get enough money to pay the bills and even then its a struggle. Papa has to work on a railroad and Uncle hammer has moved to the north where he earns a good living. Even Uncle Hammer knows and understands the values that say that family comes first. This is demonstrated when the mortgage has to paid off and Papa finds himself short of money. What goods a car? you cant raise four fine babies on it. Big Ma plays the roll of the head of the household. She adds to the stability of the environment in the home and increases the awareness of the Logan family history. She also knows each of the family members inside out. All together I think in order to have a successful family it is necessary to support, love, trust and care for the people in your family. There should be a certain loyalty and a need for one another. To be able to depend on a family member is a virtue not to be ungrateful for and in the end even Uncle Hammer showed this. He fought for what was right. Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE Mildred Taylor section.

Consumption Behaviour of Students

Consumption Behaviour of Students Chapter One Introduction 1.1. BACKGROUND OF THE STUDY 1.1.1 Consumption Behaviour Definition If it is said that marketing in true sense is the conclusion of social culture of post modern consumer culture (Firat, 1993) then an immense burden and responsibility has been imposed to determine the conditions and meanings of life for the future (Firat and Venkatesh, 1993). This life which is dealing with meeting unlimited demands with limited resources in hand and planning to secure future by making savings. So keeping this in view the consumption by individuals is really critical to full fill the needs and to secure the future. So in view of this consumption is definitely a focal point of present social and economic world. And that consumption in return definitely triggers a primary marketing concern of probability to repurchase a product regardless of its type (Peter Olson, 1990). Although consumption is as old as human history and has passed through plenty of phases but even in todays world the repurchase of items is the core priority of sellers. No matter that repurchase is o f basic necessity item or luxury product or whether it is matter of mobile connection or someone is talking about E-Banking or it is making flight reservation, every company tried its level best that a consumer should repeatedly purchase its product. The definition of consumption given by Peter and Olson (1990) is â€Å"use of product.† Peter and Olson (1990) are also of the opinion that it is not easy to define or to comprehend the meaning of consumption as there is a vast difference in the nature of various products and services. Even in this age of Information Technology and Globalization era the meaning of product (includes both goods and services) varies from culture to culture and it keeps on changing from one country to another. If a commodity or service is considered as necessity in one region, in other part of the world it may be categorized as luxury. But despite all these limitations researchers and authors still gave some comprehensive and compact definition of consumption. The idea of consumption defined by Webb (1993) in the following words â€Å"Consumption is the evaluating, buying, using and disposing of  products and services.† But like other fields of study this topic also remained under debate by variety of scholars and researchers in all parts of the world. The word of consumption attracted the attention of researchers and marketers who kept on trying to comprehend the meanings of this idea of â€Å"consumption†. While reviewing books and literature another good and wide-range definition of consumption given by Caru and Cova (2007) in the following words â€Å"Consumption is an activity that involves a production of meaning,  as well as field of symbolic exchanges.† The author elaborates this definition by mentioning that consumers do not consume products but they consume the image and meanings associated with the product and they think that it is mandatory that an object or services should fulfil certain functions. Those functions should meet and better to exceed customers expectation. If it failed to meet their anticipation then they will drop the idea of repurchase of that particular product or in case of services they will avoid to consume or avail that particular service. Simultaneously it is also said that consumption behaviour also refers to single use of a product like a soft-drink can or one can consume a product repeatedly like mobile phone or automobile. This concept of consumption behaviour also covers the issue of disposing off a product ( (Noel, 2009). Like in case of soft drink can or other single used items a general trend emerged over a period of time is that customers prefer those products whose packaging is reusable or can be recycled. But in case of mobile, automobiles, computers customers often sell those products after making multiple use of it. Consumption deals with the variety of question as it is mentioned by Schiffman and Kanuk (2007) like what to buy, when to buy, why to buy, from where to buy, how frequently they should buy, and the question of evaluation that purchase. Simultaneously the impact of evaluation on future purchase and disposing it off are also two important concerns of consumer. 1.1.2 Types of Consumption Schifman and Kanuk (2007) also highlighted two different kinds of consuming entities which deal with the consumption behaviour. The first term is personal consumption which can be defined as when good or services are bought for personal use , for household consumption or to exchange it with someone in shape of a gift. In the mentioned contexts the products are brought for final use by individuals who are referred as end users or ultimate consumers. The second category of consumers is termed as organizational consumption. It includes purchases made by profit and non-profit businesses, government agencies, and institution, all of which must buy products, equipment and services in order to run their organizations. Although both mentioned categories are of great importance but in this writing my main objective will be personal consumption. As consumption by end user is the most pervasive of all types of consumer behaviour as it involves every individual, of every age and background, in the role of either customer or user or both (Schifman and Kanuk 2007). It has been revealed from prior consumer spending studies that individuals consume in a specific way and that particular consumption behaviour is in practice due to certain factors like life style, self-image, upbringing and family structure (Martin Bush, 2000; Penman McNeill, 2008). There are some other factors which influence the Consumption Behaviour of young consumers which are parents and grandparents (McNeal 1997), parents income (Page Ridgway, 2001) and parents decision making style (Jay 2005; Elder, 1969). The mentioned factors highlighted the multi-dimensional role of parents. But the role of brands (Page Ridgway, 2001; Doston Hyatt, 2005; Bacca, 2005), consumer socialization (Razak 2003; Gil 2007; Gronhoj, 2007) and advertising (Bacca, 2005; Spero, 2004) may also not be neglected. 1.1.3. World Consumption Statistics The word â€Å"consumption† is synonym to â€Å"spending† or â€Å"expenditure†. So using this synonym, in order to quantify the consumer consumption into US $ following table best explains consumption in different parts of the world. The mentioned figures are for the year 2009. From the above table it can be easily inferred that consumers spend US $ 34,050 billion on mentioned below categories. This amount when converted in trillion it becomes almost US $ 34 trillion. This huge spending is almost 11 times more than USA total budget figure which was exactly 3.1 Trillions (http://www.whitehouse.govt, 2009). So this huge consumption creates my interest to study the factors which are reason of this huge spending. From the above table it is evident that consumer consumption in Asia Pacific is at number 3. Such a high consumption is of great interest for not only academicians but also for marketers. 1.1.4. Malaysian Public university students Consumption Behaviour According to Ministry of Higher Education website (accessed on 2011) there are total twenty public and twenty four private universities in Malaysia. The total enrolment according to MOHE (2007) in public universities is 382,997 Out of this total number 247,881 students which becomes almost 65% registered in undergraduate degree programs. It is consensus by Li, Jiang, An, Shen and Jin (2009) Komarraju, Karau and Ramayah (2007), Penman and McNeill (2008) and Feltham (1998) all are agreed that Young Consumers who are also called as Geberation Y are students. It is also agreed that young consumers fall within the age bracket of 18-24 years. As fas as Malaysia is concerned the total population of Malaysian Youngsters in 2007 was around 5 million which was almost 19% of total Malaysian population (Euromonitor International, 2010). Zainurin, Ahmed and Ghingold (2007) focus on the Malaysian young consumers attitude towards shopping malls. It is highlighted by the authors that Young Malaysian s spent a significant proportion of their monthly expenditures in shopping malls. The sources of income highlighted by Zainurin et. al. (2007) are scholarship or study loan, sponsored by parents, self sponsored and others. But Kamaruddin and Mokhlis (2003) mentioned that the major proportion of spending by young consumers is on clothes, make-up, food, sports equipment and entertainment. In the same article Kamaruddin and Mokhlis (2003) discussed young consumers consultation with parents and concluded that Chinese young consumers as compare to Malay are less likely to interact with their parents. But in case of Indians they are more likely to interact with their parents and less likely to interact with peers in consumption matters. But it will be of great interest to find out that what is consumption behaviour of Malaysian young consumers. As it is mentioned in a report compiled by PricewaterhouseCoopers (2004/2005) Malaysian households spent their high percentage of income on food, groceries and personal care items. But less had been researched on consumption behaviour of young consumers in Malaysia. The Malaysian young consumers is now well aware of products as they are more exposed to Information Technology. Their information due to frequent use of internet along various other factors like socialization, advertising, etc. establishes good awareness of marketing strategies among them. This trend of spending by Malaysian young consumer needs to be further explored. 1.2. Problem Statement As it is mentioned earlier that according to Euromonitor International 2010 the Malaysian Generation Y is about 5 million in 2007. This is also evident from above discussion that Generation Y has more disposable income (Eisner, 2005; Hongjun, 2006; XU, 2007; Henrie Taylor, 2009) to spend on variety of products. So keeping in view, the above mentioned facts Generation Y is a lucrative market for producers. Obviously their consumption behaviour is influenced by different factors and variables. It should be interesting to explore the main contributors towards consumption behaviour of Malay Generation Y. The industry like electronics, telecom, consumer products etc. whether fulfil their requirements or do they still fail to meet this Malay Generation Y expectations. It is really of great concern to study that the consumer skills or knowledge which they acquire during their childhood and teenage whether lasts with them for long time or does it keeps on changing during their adulthood. So through this study, I intend to highlight the factors and variables that influence the consumption behaviour of Malay Generation Y, which is relatively under-researched in Malaysia. 1.3. Study Objectives The general objective of this research proposal is: To identify general consumption behaviour of Malaysian public university students registered in undergraduate degree program. Whereas under the light of primary objective following are other objectives which will be achieved: To explore differences in the consumption behaviour among the three communities Malay, Chinese and Indians. To determine factors that influence consumption behaviour of Malaysian public university undergraduate students. To prepare recommendation for developing marketing strategies for Malaysian public university students. 1.4. Research Questions RQ. 1. What is the consumption behaviour of Malaysian public university students registered in undergraduate degree program? RQ. 2. What are the differences in consumption behaviour among all three communities i.e. Malay, Chinese and Indians? RQ. 3. How significant each factor in influencing consumption behaviour of Malaysian public university students? RQ. 4. What are good recommendations to develop marketing strategies for Malaysian public university students? 1.5. Significance of the Study It has been estimated by US Census Bureau (2010) that more than 17 % of total world population falls within the age bracket of 15-24 years. This age bracket is about 1.14 billion and it was mentioned by Xu (2007) that this age bracket is wealthiest group. As far as Malaysia is concerned, according to Euromonitor International (2010) the population among this age bracket was 5 million in 2007 which became almost 19% of total population. This age bracket normally are part of universities. It is mentioned by Walsh and Mitchell (2005) that education improves analytical skill so through this study I intend to study the students registered in variety of educational degrees from certification/diploma to PhD programs so that their consumption behaviour can be explored. This particular group has more disposable income (Eisner, 2005; Hongjun, 2006; XU, 2007;Henrie Taylor, 2009) as compare to the generation of parents and grandparents. Simultaneously they have less saving spirit as compare to Generation X. To study the consumption behaviour of Generation Y is of great interest as most of the Malaysian studies conducted in shopping malls and authors always studied the way this age group shop. In addition to this they are always studied by combining with teensor tweens. So through this study I will solely study consumption behaviour of Malaysian Generation Y. 1.5.1. Academic Perspective So far lot of studies had been conducted about the behaviour and attitude of Malaysian consumers in shopping malls like grocery shopping by Miranda and Jegasothy, a study of Malaysians behaviour in shopping malls conducted by Zainurin et. al. (2007) etc. But I failed to find any study which is solely targeting Malaysian young consumers. There are studies where main focus was exploring single variable like television viewing by Ghani (2004), culture studied in context of service quality by Kueh and Voon (2007), ethics in consumption studied by Chai and Lung (2009). In the light of above mentioned facts the main focus of this study will be consumption behaviour of Malaysian young consumers. The study will be a food for thought for academicians which will further enhance the existing body of knowledge on the consumption behaviour of young Malaysian consumers. The significance of factors that influence consumption behaviour of young consumers definitely opens new horizons and helps the researchers to broaden the scope from studying attitudes of young consumers in shopping malls to the general consumption of Malaysian young consumers. 1.5.2. Industry Perspective Young consumers are always a great mystery for producers of products. It is really challenging to fulfil their fast changing taste, needs and choices. This study will definitely give a more coherent and clear picture of the factors that influence young Malaysian consumers consumption behaviour. Through this study it will be explored that how Malaysian Generation Y undergo the four steps mentioned in the definition of consumption behaviour which are pre-purchase evaluation, finalizing and making purchase of product, using of product and disposing off product. Through this study the consumption behaviour among three ethnic groups of Malaysia will be explored so that a clear and specific distinction of consumption behaviour among these three groups can be researched which will definitely useful for marketers for developing marketing strategies. Chapter two 2.1. Literature Review For this study I would like to start my discussion by highlighting the importance of marketing. 2.1.1 Marketing and its Importance In Forbes it is mentioned by Trout (2006) that it has been long ago that Peter Drucker, the father of business consulting, made a very profound observation that has been lost in the sands of time which is: Because the purpose of business is to create a customer, the business enterprise has twoand only twobasic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business. This concept of marketing is far beyond offering and creating of products and services. Its a matter of customer creation. It deals that how relationship can be established with customer and the ways through which these relationships can be strengthen. It also addresses to certain other critical issues like; How a loyal customer can be created? How product inclusive of goods and services can be innovated? Before discussing this concept in detail it is better to present certain definitions of marketing: Marketing in the words of Kotler, Armstrong, Ang, Leong, Tan, Hon-Ming (2009): â€Å"The process by which companies create value for customers and build strong customer realtionships in order to capture value from customers in return.† Another definition of Marketing given by American Marketing Association mentioned by Cooper and Schindler (2006) is: â€Å"It is an organizational function and a set of processes forcreating, communicating and delivering value to customers and formanaging customer relationships in ways that benefits the organizationand its stake holders† Aaker, Kumar and Day (2001) define marketing in the following words: Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. The marketing concept requires customer satisfaction rather than profit maximization. It is evident from all mentioned definitions that customer is the main focus of each producer and service provider. As it is highlighted by Levitt in 1960 that industry should focus customer- satisfaction process rather than a goods producing process. He emphasized that all producers should understand this philosophy as industry begins with the customers and his/her needs not with the patents or copyrights, neither it starts with raw material or a selling skill. The idea which was presented around 50 years back is still valid and nowadays this main issue is a core concern by all the companies. The Druckers philosophy about business enterprise is very well comprehend by saying that marketing and innovation are two basic functions of business. The idea of marketing keeps on emphasizing that how customers confidence can be won. The companies from USA to Australia, the organizations operating in Africa, the enterprises offering their products in Asia Pacific and regardless of product variety as well as geographic location all are trying hard to satisfy the fast ever changing consumer needs, wants and requirements. Peter and Olson (2008) highlighted that companies are making changes to serve their customers. They have highlighted three reasons of these changes. The first reason of bringing the changes is the dramatic success of Japanese companies such as Toyota and Sony who give ample attention to their consumers and give them value-laden [5] products. This idea spurred other companies philosophies and influence them to prioritize customers taste, needs and wants. The second major reason is the dramatic increase in the quality of consumers and marketing research. In the past although companies conduct surveys and receive feedback from customers which was occasional and not so frequent. But today Information Technology made it easy for retailers and manufacturers to keep the track of customer reactions towards product and services. The third main reason of prioritizing customers taste is the development of internet as marketing tool. As internet is a tool to through which information about products can be shared with vast majority. 2.1.2. Consumer Behaviour Variety of writers like Kotler (2008), Engel, Black and Miniard (1995), Mclver and Naylor (1986), mentioned that understanding and adapting to customer motivation and behaviour is not an option but it is life blood for the survival of companies in this modern world. And this term or subject bring tremendous change in organizational set up. According to McNeal (1982, p. 8) â€Å"consumer behaviour is the preparation for purchase, the purchase act and the use and disposal of those things purchased.† McNeal (1982) also highlighted the three stages for the act of consuming which are (1) pre purchase behaviour, (2) purchase behaviour, (3) post purchase behaviour. The author mentioned that most of the time researchers or writers overlook pre purchase behaviour but that is the stage which cannot and should not be overlooked. While defining â€Å"consumer† author elaborated that consumer is the person who undergo through all mentioned three stages for his benefit or for the benefit of others. So in consumer behaviour the three stages mentioned by McNeal (1982) are integral. And whenever a consumer spends money whether on good or on services he/she has to undergo these three stages. Another definition of consumer behaviour given by East (1997) â€Å"consumer behaviour is about human responses in a commercial world; how and why people buy and use products (include both goods and services), how they react to prices and other promotional tools and what underline mechanisms operate to help and hinder consumption.† 2.1.3. Consumer Behaviour: Bridge the Gap between Producer and Consumer Above mentioned definitions, considered the discipline of Consumer Behaviour as a bridge between producers and customers/consumers. Like commercial world where producers advertise and share the information about the products they are offering to the market and response shown by the customers or consumers can be positive or negative. The positive response of the customer or consumers resulted in the shape of increasing sales, revenue for the company, satisfaction and trust on a particular or all products by a company. But a negative attitude can be like not purchasing the product of a company, shown distrust or sharing negative beliefs about a companys product to others. Simultaneously, the definition also shed light on another important aspect help to study the mechanisms, behaviour or attitude of customers or consumers under the influence of which they stop buying the product or any change in the attitude of customers/consumers towards a product. After discussing the definitions of Marketing and Consumer Behaviour one thing is evident that creation of value for producers and marketers are of core concern. This creation of value is integral and most critical phenomenon for marketers. Value is defined by the customer not by the supplier in the factory or it can also be defined that value is not what the producer puts in but what the customers get out (Khalifa, 2004). So this creation of value should be addressed and deal professionally as if it fail to meet or exceed customers satisfaction than he/she will jump to alternate or competitor. 2.2. Consumption Behaviour in Different parts of The World Consumption is lifeblood of each individual. Consumption can be termed as a process or a phase through which each and every individual of each nation has to undergo (Raijas, Lehtinen, Leskinen, 2010; Kamaruddin Mokhlis, 2003) or consumption is a mean to express and create self identity (Phau Woo, 2008) or consumption is ruled by sports celebrities (Dix, Phau, Pougnet, 2010). So a lot of factors that influence consumption are researched, studied and comprehended in variety of studies. How individuals undergo consumption in different parts of the world are mentioned below: 2.2.1. Consumption Behaviour: American and Canadian Perspective It is highlighted by Moschis and Churchill (1978) that early sociologists speculated that young people learn most of the basics of consumption from their parents. It is interestingly a very valid fact even in this age of information technology and in this world which is called as global village. Parents are still considered as the most valuable, reliable and modest source of knowledge regarding consumption behaviour. Even young consumers not only consider them as ready source of knowledge but even when young consumers start living alone they still consult their parents whenever they have to make any purchases. It was highlighted by Feltham (1998) that primary groups have stronger influence on consumption. Parents are one of the most strongest part of this primary group. Generally it has been observed, researched and mentioned that generally parents are considered as strongest and comprehensive source of knowledge and they have greater influence on the consumption behaviour of their d escendents. Felthams (1998) finding that males are less likely to discuss about consumption with parents and if they do they receive lesser reinforcement but this trend is quite opposite in case of females where they openly and comfortably discuss about consumption with parents and simultaneously they receive positive feedback as well. This finding of Feltham (1998) is consistent with Moschis, Moore and Smiths (1983) results. It is mentioned by Clark, Martin and Bush (2001) that parents are role models for their children in consumption and the way parents educate their children about consumption, brand and other spending activities it lasts with them for quite a long time. 2.2.2 Consumption Behaviour: European Perspective It is highlighted by Rolfe (2005) that young consumers in UK are living with their parents and they are provided with all the necessities but the parents of this Generation Y has more disposable income as compare to the generation of 1960s and 1970s. On the basis of this factor Generation Y are more interested in Branded and expensive items. This fact is highlighted and mentioned by Gronhoj (2007). Both positive and negative experiences teach young people how to direct their future decisions on spending. At the same time, they learn that good intentions can be lost to temptation, and consumer goods and/or services may not be rationally controllable. According to Gil, Andres and Salinas (2007) repetitive consumption of brand establish a loyalty of brand among children and it last with them even when they start living alone. They stick to that brand and loyal to its features. It also mentioned that memories associated with that brand also stopped them from switching the brand. It is fact mentioned by Gil, Andres, and Salinas (2007) that when young consumers start living alone they carry the experience of consumption with them which they learn while living with their parents. They take the same learned consumption behaviour with them which is shown by their parents and which they experience during their stay with their family. As per Gronhoj (2007) young consumers not only spend increasing amounts of money on consumer goods but they exert considerable influence on the consumption choices of the rest of the family. Media through advertisement also shape up the consumption behaviour of these young consumers. Bravo, Fraj and Martinez (2007) highlighted that whenever young consumers faces some new consumption situation which they never encounter earlier they contact their parents. In most of the cases parents kept on giving them suggestions even when they start living alone. It is also realised that young consumers consult their parents more frequently when they start living alone than during their cohabitation. Even the product quality is also dependent of the parents usage, suggestion and recommendation. Schloffer, Maloles III and Chia (2009) mentioned that Generation Y is very well informed generation. They start using computer, internet and other electronic gadgets from the early part of their lives which not only enhance their knowledge for products but also it polishes their thinking capabilities. Internet is a tool for them who helped them in making purchase decisions. They are brand conscious and fashion oriented generation. But simultaneously they are criticised as poor financial planner and considered as they have very low financial skills. In Finland it has been noted and written by Raijas, Lehtinen and Leskinen (2010) that technological and economical institutions facilitate and encourage consumption by offering credit to consumers. These financial institutions are offering credit cards, mortgages, personal loans, etc. Young consumers are availing these credits facilities mainly for two reasons: one is for setting up their own homes and secondly they want to raise their social status. Consumption on mentioned factors leads this Generation Y towards increase their consumption and in some cases this consumption is more than their income which becomes critical and have adverse impact of the countrys economy. Bouzaglo and Moschis (2010) mentioned that in some countries and culture the show off becomes trend and people especially young consumers showed it in their consumptions. They purchase products which are classified as speciality products so that they can have separate identity and considered as status oriented and fashion driven. But in countries like France it is the culture that money and possessions should be kept in secrecy. It is also mentioned by Bouzaglo and Moschis (2010) that in case of dislocated families young consumers heavily rely on peer communications and media. In this case the important role of parental communication about consumption is missing and these young inexperienced consumers may lead towards excess consumption. 2.2.3. Consumption Behaviour: Asian Perspective According to Hongjune (2005) young consumers always try to experience new things. They are very experiential and innovative. When they are associated to a group of friends then their liking and disliking should be aligned with their peers. If they failed to do so then they have feeling that they will be dropped by their peers. Even in purchasing products they are very careful about the groups opinion with regard to the brand, colour, and features of product. Simultaneously in Singapore it is mentioned by Hongjune (2005) that Generation Y of Singapore has seven pockets. Parents, grandparents from maternal and paternal side and now part time work is also considered as respectable source of income. The income from part time work is sometimes saved but most of the time it has been observed that they kept of spending and the saving spirit is not like their parents or grandparents. Hsu and Chang (2006) on the basis of findings by Moschis and Churchill (1978) mentioned that socialization has an enormous impact on the consumption behaviour of individuals. There are three important and integral socialization agents which are parents, peers and media. Among these three parents are considered as one of the most critical and