Economic Liberalization Essay Example | Topics and Well Written Essays - 2000 words

Economic Liberalization - Essay Example Though both have now become a very successful case of FDI channeled development model but the structure of economy of these two nations are at the two ends of any of the economic theory. In China, being a one party communist state and very strong central government economic decisions are taken irrespective of what is actually the people at ground wish while in India, being a secular democratic nation with multi-party political system decisions related to economy are often taken while considering the compulsions like electoral promises and is very much populist in nature. The governments which includes both central and states are always under pressure from both opposition parties and popular public demand and many a times the decisions get affected due to this factor. At the same time, India's economic stand for more than forty years of its independence had been protective and least connected with the world (Bromley, Mackintosh, Brown & Wuyts, 2004, p. 196). Its neutral stand during t he cold war and strategic military relationship with USSR caused very less interation with western world led by USA. The country continued to pursue its independent political stand and entered 21st century, its economic structure saw extreme changes and the country now boasts of having the USA as its largest trading partner and at the same time, US has also found great interest in world's largest democracy and the recently signed nuclear treaty between the US president George Bush and Indian Prime Minister Dr. Manmohan Singh clearly underlines the growing interest between the two. So the new India or better to say the liberalized India post reforms presents a beautiful case where Kenneth Waltz's theory of International Relations which states that the action of a state can often get affected due to pressures being exerted by international forces and thereby limiting the options available to them(1979). The neorealist or structured model has been developed with the aim to explain the repeating patterns of state behavior and power and its extent which is the combination of its capacity to resist external influence while influencing others to behave according to its wishes (Extra Material, p. 6). The liberalization process in India began in early 1990s in the tenure of the Prime Minister P. V. Narashimha Rao under the leadership of then Finance Minister Dr. Manamohan Singh. The reform process and India's integration into world economy was widely appreciated with International Monetary Fund or the IMF calling it a long term corrective measure. The reform process which began with India signing GATT and becoming a part of WTO was widely appreciated by almost all economic quarters (Bromley et. al, 2004, p. 173). But still the opposition led by communists and the BJP were dead against the proposal. The Narashimha Rao govt. continued with his reforms though slowly while destroying the opposition unity by making non BJP opposition parties believe that the fall of the government will make way for BJP to grab power at centre. BJP at that time was regarded as a communal political party and there was a widespread fear that once coming into power this party will make solid changes to th e current political structure of India and might convert India into a single party ruled state. This fear helped the Narashimha Rao govt. to complete its full term and during this period, the Indian economy became irreversibility liberal (Bromley et. al,

Relationship maintainance Essay Example | Topics and Well Written Essays - 750 words

Relationship maintainance - Essay Example It ensures that none of the members has more benefits others within the society provided they have the same qualifications. It is not certain whether nepotism is right or wrong in the society; however, individuals in countries such as China believe in nepotism. Many people have different perceptions and beliefs concerning nepotism. Nepotism is a direct act of favoritism to other persons due to a given relationship status with such persons (Jones, 9). It does not consider merit in the allocation of opportunities or resources. Nepotism seems to favor a few individuals in the society; however, it is not fair in the modern world especially in educational and corporate institutions. Although it may be beneficial to some individuals, it could result in negative consequences in the long-term. Such consequences involve the denial of the acquisition of communication skills alongside other important skills due to overdependence on family networks and relationships. People who depend on nepotism for opportunities do not show effort or commitment to their work because they sure of their strong networks. China is one of the largest countries in the world. It is also one of the oldest civilizations and has improved technologically over the years. Many students graduate every year from higher learning institutions with expectations of easily securing working opportunities. However, it is difficult for such graduates to find employment despite having all the desired qualifications. This is because, for one to find a job they require higher educational qualifications, work experience, and above all a perfect network. A perfect network involves the ability to maintain constant visits to the home of a person in authority for a long time. For instance, I needed to find a job once I graduated. My father had already started a relationship with a particular manager a long time ago. This is because he needed the manager to

Summary of an article Essay Example | Topics and Well Written Essays - 750 words - 1

Summary of an article - Essay Example In his article, Tiebout stresses that this concern is different if the governments can â€Å"provide goods to citizens who can move to distinct communities† (Stoddard n.p.). The rationale is that if the people are confronted with a collection of communities that afford various kinds or levels of goods or services, then the people will be placed in a framework wherein they are able to choose communities that best serve their interests. This is a potential resolution to this â€Å"free ride problem† as citizens will be given options based on their capacity to take on tax burdens: citizens with high demands for public goods may choose to focus on communities that provide the corresponding levels of services and taxes. On the other hand, those who could not afford high levels of services and taxes may choose to concentrate on communities has low demands. The gist of this potential intervention, according to Tiebout, is to ensure that every citizen get their fair share of pu blic goods and services. Tiebout believes that Samuelson’s article largely focused on the public goods at the central level. He observes that while Samuelson and Musgrave claimed that public good provision can be optimal, this can only exist if the citizens express their true preferences through voting. Nevertheless, in reality, this is not what is happening: citizens are devaluing their preferences and demands in order to preclude high taxes. He identifies that this model merely presumes that provision of public goods can only be carried out by central governments. Tiebout balks with this idea and resorts to local governments. He comes up with a model that considers local governments as providers of public goods. He proposes that local governments, like central governments, generate a parcel of public goods. Tiebout believes that local governments can provide optimum public

The Boston Beer Company Essay Example for Free

The Boston Beer Company Essay Jim Koch began selling Sam Adams beer from bar to bar out of a brief case in April 1985. He sold unlabeled bottles kept cold with chill packs from his briefcase. His sales tactic was the following simply 10-second pitch: â€Å"Try this new beer. It’s handcrafted in small batches. You’ll like the taste. † (Hyatt, 2010) At the time, the craft beer industry in America was virtually non-existent. By 1989, sales of Sam Adams had grown to 63,000 barrels. In 1996, Sam Adams sales had reached 1. 2 million barrels. (Wikipedia, 2012). The success of the brand served as the catalyst for what many call the microbrew revolution. By 1995, there were approximately 600 small, local and regional breweries throughout the United States. Today, the Boston Beer Company (producer of Sam Adams) employs over 800 workers and brews over 2 million barrels of Sam Adams beer annually. It is the largest of the craft breweries in the United States. (Boston Beer Company) The craft brew industry accounts for about 1 percent of the domestic beer market, which is dominated by giants MillerCoors and Anheuser-Busch InBev. This is has required a remarkable level of growth since the early 1990s. In 2011, the industry grew 13 percent by volume (barrels) and 15 percent by retail dollars. Domestic craft beer sales reached 11,468,152 barrels in 2011, up from 10,133,571 in 2010. This growth has occurred despite the overall $96 billion domestic beer market contracting in the past few years (down 1 percent in 2011 to 199,937,239 barrels). (Brewers Association, 2012) The craft brew industry is comprised of several types of breweries which range in annual production from a few barrels up to 6 million barrels. The Brewers Association recently revised the upper limit from a previous point of 2 million barrels in 2011. (Nason, 2011). The industry classifications are the following: * Nanobreweries: Breweries which produce less than 30 barrels per year. * Microbreweries: Breweries classified by their annual production volume, which is up to 15,000 barrels per year. In addition, 75 percent of the beer produced is sold outside of the brewery. There are no set guidelines on the inputs or techniques used to produce the beer in order to be classified as a microbrewery. (Kleban Nickerson, 2011) While the term is often used interchangeably with the term ‘craft beer,’ they are actually not synonyms. A craft beer must contain at least 50 percent traditional malt. (Brown, 2012) * Brewpubs: Restaurant-based breweries in which more than 25 percent of the beer produced is sold onsite, often directly from the brewery’s storage tanks. A majority of these are located in the northeast. * Contract brewing company: Breweries which outsource their production to other breweries subject to exact brewing specifications. The contract brewing company handles all marketing, distribution, and selling responsibilities. (Brewers Association, 2012) Boston Beer Company used to be classified as a contract brewing company. However, from 2007 to 2009 the company’s production at company-owned breweries increased from approximately 35 percent to over 95 percent. (Datamonitor, 2011) * Regional craft brewery: Brewers which produce from 15,000 to 6 million barrels of beer per year. Less than 25 percent of the brewery is owned or controlled by a non-craft alcoholic beverage industry member. In addition, at least 50 percent of its production volume must be in all-malt beers. (Brewers Association, 2012) The Boston Beer Company is now a regional craft brewery. The total number of U. S.craft breweries passed 2,000 in 2012, with significant growth since 2009: Breweries (#)| 2009| 2010| 2011| Regional Craft Bwr. | 71| 81| 88| Microbreweries| 505| 615| 789| Brew Pubs| 1,020| 1,053| 1,063| Total| 1,596| 1,749| 1,938| (Brewers Association, 2012) The industry is based on a three-tiered system of distribution in which the producers partner with wholesale distributors who provide transportation and refrigerated storage to retailers. There are hundreds of distributors in the industry, and over 630,000 retailers. There are over 220 million potential customers (over the age of 21 yrs.) domestically. (Beaudette, 2011). States control the regulation of the industry, and typically collect taxes through the distributors, rather than attempting to work with hundreds of thousands of retail outlets. (Beer Distributors of Oklahoma, 2010) Company’s Dominant Features The Sam Adams brand was named for the Boston revolutionary who was also a brewer. Samuel Adams Boston Lager made its debut in April 1985, when it was served in approximately 25 Boston bars and restaurants. At this point, the company had two employees: Jim Koch (founder) and his partner Rhonda Kallman. Sales reached 500 barrels by the end of the year, and the company expanded rapidly from there. (Samuel Adams, 2012) The company went public as the Boston Beer Company in 1995, selling shares of Class A common stock on the New York Stock Exchange using the ticker symbol SAM. Jim Koch owns 100 percent of the company’s class B stock, which grants him control over all decision-making responsibilities of Boston Beer Company. They have three breweries located in Cincinnati, Boston and Breinigsville (Pennsylvania), and produce over 30 styles of beer. (Boston Beer Company) This includes its seasonal brands: Alpine Spring (January-March), Summer Ale (April-August), Octoberfest (August-October), and Winter Lager (November-January). (Wikipedia, 2012) The company currently produces over 2 million barrels of beer annually, and is the largest craft brewery in the industry. It is the second largest American brewery by sales volume (to D. G. Yuengling and Son). The company has been a pioneer within a growing differentiated niche market within the alcohol beverage industry. The Boston Beer company builds its competitive advantage by focusing on innovation and quality (freshness). The company (and craft beer industry as a whole) cannot compete with Anheuser-Busch InBev and MillerCoors based on price due to lack of scale (though Sam Adams is more widely distributed than any of its craft industry members). The company began freshness dating back in 1987. It soon followed this with an amnesty program for its wholesalers which allowed beer that was three months past its expiration date to be returned for a partial refund. In more recent years, the company has enacted its Freshest Beer in Town initiative. This is a just-in-time distribution model in which wholesale partners will keep only one week of inventory (down from 3-4 weeks’ worth before), and the Boston Beer Co. will replenish supply based on consumer demand. The company also has begun the Draft Quality Audit Program, in which trained employees make in-market visits to test the freshness of the company’s product on tap at various retailers. Over 20,000 such audits are now conducted on an annual basis. The company also plans to continue pursuit of joint collaborations with other breweries and expansion of its own operations. It currently has an agreement with Moosehead Brewery for distribution of Sam Adams products in Canada. It has also teamed with Germany’s Weihenstephan Brewery to create Infinium, the first new beer style created under the Reinheitsgebot principle of beer purity (only four allowed ingredients: water, malt, hops and yeast). The Weihenstephan Brewery has a credible claim as being the world’s oldest brewery, and enjoys a strong reputation among beer enthusiasts. (Zegler, 2012) Regarding potential future growth, founder Jim Koch is excited for both his company and the craft beer industry. In 2011, he stated the following: I do believe that craft beer has a solid foundation for continued growth. Because in 2011, craft beer has become the new wine and the 20-somethings are adopting craft beer in the same way that their boomer parents adopted wine. When that happened in the 80s it led to decades of steady, healthy growth, and I’m optimistic that craft beer can have many years of steady, health growth†¦. I also believe that we (Boston Beer Co. ) have a really bright future. We’re also very small. Sam Adams can double. We can maybe even triple [in size] in the next 20 years. (Zegler, 2012). Places where it competes As stated above, the Boston Beer Company operates three breweries in Cincinnati, Boston and Lehigh Valley of Pennsylvania. Over 95 percent of the company’s products are now produced in its own breweries. It is distributed throughout the United States, in parts of Europe including Germany, and now in Canada through an agreement with the Canadian brewery Moosehead. Standing in the Industry (Rivals) Boston Beer Co. has been the craft brewing industry leader since its beginning. It was the number one craft brewer in 2011 based on beer sales volume. It was followed by Sierra Nevada Brewing Co.and New Belgium Brewing Co. In the overall industry, Boston Beer Co. is number five in beer sales volume, behind Anheuser-Busch InBev, MillerCoors, Pabst Brewing Co. and D. G. Yuengling and Son Inc. The craft beer segment accounts for approximately one percent of the overall alcoholic beverage category (includes wine and spirits, imported beer, craft and large breweries). (Brewers Association, 2012) Anheuser-Busch InBev and MillerCoors dominate the industry, though business dipped last year. Interestingly, there seems to be a great amount of cooperation and collaboration amongst the members of the craft brewing segment. Building the segment is a common concern with many of the regional craft breweries. For example, in 2008 Boston Beer Co. responded to an industry-wide hops shortage by sharing 20,000 pounds of its own hops at cost with 108 selected craft breweries. (Samuel Adams, 2008) There are many other notable craft breweries that have emerged as industry leaders in the past decade, including the following: * Sierra Nevada Brewing Co. : The nation’s second largest craft brewer, they are based Chico, California. The company was founded by Ken Grossman and Paul Camusi in 1980. Production is approaching 1 million barrels annually. The most popular product is the Sierra Nevada Pale Ale. * New Belgium Brewing Co. : Headquartered in Ft. Collins, Colorado and founded in 1991 by Jeff Lebesch. The company’s flagship beer is the popular Fat Tire. It is the nation’s third largest craft brewery. The company’s distribution network had reached 19 states by 2009, and is growing. * Deschutes Brewery: Based in Bend, Oregon. The company’s products include its Black Butte Porter, Mirror Pond Pale Ale and the award-winning The Abyss (11% alcohol by volume; released in 2007). * Harpoon Brewery: Headquartered in Boston, Mass. Products include its India Pale Ale, Munich Dark, 1636 Brew and four seasonal varieties. * Boulevard Brewing Co. : Located in Kansas City, Missouri. The company’s products are available in over twenty states in the Midwest region. (CNBC, 2012) * Dogfish Heah Craft Brewery: Founded by Sam Calagione and based out of Delaware. Calagione is known for pushing the boundaries of brewing varieties, and actually collaborating with Jim Koch in creating 2009’s SAVOR Flowers brew (it was a one-time experiment). Competitive Capabilities Boston Beer is the craft beer industry leader by production and sales volume. Its focus is on freshness and innovation (variety). The company started early with its freshness dating, followed by its amnesty program for its distributors, and now the Freshest Beer in Town and Draft Quality Audit Program. Regarding his company’s emphasis on beer freshness, Koch stated the following: If my beer isn’t fresh, I want the consumer to buy something else. And I want to make it as easy as possible for them to know because if they have a bad experience with my beer, they may not buy it again. To me, it’s not about trying to get consumers that are trying one beer after another and they never buy again. I’m very focused on giving consumers a great taste in every bottle so I can build brand loyalty based on a reliably rewarding experience. (Zegler, 2012) Boston Beer innovation is manifest in its wide variety of seasonal and specialty brews, as well as its recent notable collaborations. It teamed with Weihenstephan Brewery to create Infinium, which sold out domestically within a few weeks, and apparently had similar success in Germany. The company added Noble Pils in 2010 (winner of its 2009 Beer Lover’s Choice election; brewed with all five Noble hops). Latitude 48 is an India pale ale with hops from producers along the 48-degree latitude sources. The company also released its Samuel Adams Revolutionary Rye Ale in 2011 (winner of 2010 Beer Lover’s Choice election). The company also intends to expand its Barrel Room collection of beers, which until recently were only distributed in Denver and Boston. The Barrel Room beers are aged in the Boston Beer Company’s brewery supply of barrels, and include American Kriek, New World Tripel, and Stony Brook Red varieties. Jim Koch stated the following concerning his company’s push for new varieties: We’re not the new kid on the block. We’re not the newest beer out there. We’re not the most local. We don’t have the best marketing or a cute brand name. People have tried Sam Adams, it’s not a new experience†¦ the reason that we’ve become the leading craft brewery is because we have always given the consumer the best possible experience and they have rewarded us with their loyalty. That’s why we keep pushing on those things. . (Zegler, 2012) Forces Driving Industry Change. Aside from the continued expansion efforts of many industry’s regional craft breweries, there has also been a current lobbying push on behalf of the craft beer industry for the passage of Congressional bills H. R. 1236 and S. 534, which would reduce federal excise taxes applicable to the craft breweries. Specifically, if passed the bill would reduce the small brewer rate on the first 60,000 barrels by 50 percent, from $7. 00 to $3. 50 per barrel. The rate on production between 60,000 and 2 million barrels would also be reduced from $18. 00 to $16. 00 per barrel. The two bills were introduced in March 2011. (Brewers Association, 2012) (Buchman Law Firm, LLP) Sources of Competitive Advantage Arenas Boston Beer Company operates in the craft brewing industry, which accounts for approximately 1 percent of the overall beer industry, which is dominated by Anheuser-Busch InBev and MillerCoors. Sam Adams and the company’s other products are distributed throughout the United States and Canada (via the recent agreement with Moosehead Brewery of Canada). The company’s target customer is one who is willing to pay a premium price for a quality beer, and will display brand loyalty. The company’s standing as a catalyst for the microbrew revolution has given it considerable brand recognition among beer enthusiasts. Vehicles The company has grown considerably in twenty years, employing over 800 employees with three breweries which now produce 95 percent of the company’s products. Jim Koch plans to continue company expansion, with visions of tripling in size in the next twenty years. Based on the company’s history, expansion will most likely occur through internal development rather than via any mergers or acquisitions. Each beer style must registered by requests for certificates of label approval (COLA). State registration usually requires a state application coupled with the federal COLA for a given label. (Buchman Law Firm, LLP) Excise taxes are typically collected through a company’s wholesalers. Boston Beer Co. has embarked on some notable recent joint ventures, including its creation of Infinium in collaboration with the Weihenstephan Brewery and its Canadian distribution agreement with Moosehead Brewery. On the supply side, the company must continually replenish its inventory of barley and hops. Monthly barley prices from February 2007 to January 2012 had a standard deviation of $37. 76 per metric ton. This low amount of variation has led many breweries to simply purchase the crop on an annual basis. Conversely, many breweries will contract to acquire hops years into the future. The Boston Beer Company has over $33 million in hops contract commitments through 2015. (Craft Beer Analytics, 2011) Differentiators Boston Beer Company has significant brand equity within the craft beer industry due to its significant role in creating it. They attempt to further differentiate their products based on freshness and product innovation. Its Freshest Beer in Town initiative is a just-in-time supply arrangement with the company’s wholesalers (it was intended to include 50 percent of Boston Beer’s distributors by the end of 2011). (Craft Beer Restaurant Times, 2011) The program reduced suppliers’ inventories of Sam Adams down from an average of 3-4 weeks to just one week (which is to be kept chilled). Boston Beer ships more based on what the distributors have sold as opposed to advance orders. According to Koch: â€Å"Refrigeration of the beer virtually eliminates all of the product degradation that happens through the supply chain. The temperature control also makes it as if the retail account is getting its beer straight from the brewery. † The Draft Quality Audit Program is one in which company salespeople have been trained to taste the defects and track the cause of low quality Sam Adams on tap at various retailers. Boston Beer Co. now conducts approximately 20,000 audits each year, which has resulted in a drop in the incidence of low quality company beer from 15 to just 3 percent, according to Koch. (Zegler, 2012) The company has also continued to expand its beer varieties. From its seasonal brews and collaborations with breweries such as Dogfish Head and Weihenstephan, to its Barrel Room collection and updates such as Noble Pils, Latitude 48 and Revolutionary Rye Ale, the company is always looking to test the boundaries of craft brewing. Corporate Strategies Boston Beer Company has successfully built on Sam Adams’ strong brand equity, differentiating its products based on quality, variety, and freshness. The company has continued to expand its operations with no plans to discontinue such efforts. It has also hedged against future increases in hops prices with over $33 million in hops contracts already signed covering the company through December of 2015. Economic Logic The craft beer industry is based on the idea that consumers will pay a premium price for a quality beer which is different from the industry norms offered by companies such as Anheuser-Busch InBev and MillerCoors. Sam Adams also benefits from considerable brand equity. Staging and Pacing. Jim Koch has stated that he believes that the craft beer industry will continue to trend upward in sales relative the rest of the alcoholic beverage industry, and that the Boston Beer Company could triple in size within the next 20 years. His opinion on this matter is important, because Koch owns all of the company’s Class B common stock and with it, retains all decision-making authority for the company. Financial Analysis Current Financial Standing The 2011 fiscal year provided the Boston Beer Company with multiple opportunities to raise their glasses. Undoubtedly, the major achievement of 2011 was officially obtaining just over 1% of the United States beer market. This increased market share enabled the company to release some very impressive numbers in their recent 10-K. Earnings Snapshot| Revenue| $558. 282M| Net income| $66. 059M| Return on assets| 24. 24%| Return on equity| 35. 76%| Profit margin| 11. 83%| Current ratio| 1. 88| Quick ratio| 1. 37| Quite possibly the most staggering ratios from the 2011 filing are the company’s return on assets (investment) and return on equity. These tools measure how profitable a firm is relative to their total assets and total equity, respectively. In 2011, the Boston Beer Company reported a return on assets of 24. 24% and a return on equity of 35. 76%. Both of these ratios have a high level of volatility depending on the industry. These measures are remarkable within the alcoholic beverage industry, as well as the general beverage industry. In comparison, Coca-Cola (KO) posted a return on assets of 10. 72% and a return on equity of 27. 10% in 2011, while the winemaking company Constellation Brands (STZ) posted a return on assets of 6. 25% and a return on equity of 16. 75%. Furthermore, the company performed well regarding profit margin. Differing from other measures, profit margin should rarely be used to compare different firms. The reasoning behind this is that firms have varying levels of setups, so comparing profit margins could lead to confusion and misdiagnosis. The best way to use profit margin is against prior years. When weighed against its prior years, the company has seen a constant uptick over the past several years, signifying it is doing a good job of controlling costs and setting pricing at a reasonable level. The Boston Beer Company excelled in their liquidity and leverage ratios as well, not just in the three major profitability ratios: return on assets, return on equity, and profit margin. The most common ratios for measuring liquidity are the current ratio, quick ratio, and cash ratio. The current ratio (liquidity ratio) is an easy way to measure whether a firm is able to pay its short-term debts. A ratio of 1. 0 or above is likely and expected, and the Boston Beer Company’s 2011 current ratio of 1. 88 leaves it with plenty of leeway to pay all of its short-term obligations. Much like the current ratio, the quick ratio is a slightly more conservative measure that takes into account current levels of inventory, which can be difficult to liquidate. The company’s quick ratio is 1. 37, after taking out inventories. This still leaves plenty of room for the company to repay its short-term obligations. The last liquidity ratio is the cash ratio, which is the least commonly used of the three measures mentioned previously. The cash ratio is the ultimate ratio of liquidity because it only compares cash and marketable securities to current liabilities. An extremely high cash ratio could signify that a firm is stockpiling cash and not investing its assets wisely. The company’s cash ratio of 0. 74 is less than 1. 0 but still reasonable considering the other amounts of short-term assets. While the company does not have the ability to pay its short-term obligations with cash, it is still operating within a secure level of liquidity. The last group of ratios is the leverage ratios. These ratios measure how much debt a company is carrying. The total debt ratio divides total liabilities by total assets, giving an estimation of how leveraged a company is at a given time. In 2011, the Boston Beer Company’s total debt ratio was 0. 32, which would signify a generally low level of risk to potential investors. Much like the total debt ratio, the debt to equity ratio is a leverage ratio that has total debt in the numerator. The difference is the debt to equity ratio divides the total debt by stockholders equity. This ratio shows how a company finances its activities, whether through debt or equity. The Boston Beer Company’s debt to equity ratio of 0. 47 indicates it has very little debt compared to its equity. This shows how the company has been conservative in using debt to finance its operations. The last leverage ratio is interest coverage, a tool used to see how easily a company can pay its interest expenses. Since the company has interest income instead of interest expense, the interest coverage ratio is not valuable when evaluating the company’s 2011 financials. Recent Financial Trends During the past three years, the Boston Beer Company has seen steady gains from almost all of their major financial indicators. The company, undoubtedly, has improved on their prior year results across the board since 2009. When the financial crisis struck the United States and the world in late 2008, most firms encountered decreased earnings and in many instances, losses. Many of these companies are just now returning to their pre-recession profitability. The majority of the damage was incurred to these companies in the fourth quarter of 2008 and well into 2009. As seen by their year-over-year net income growth of 284. 74% in 2009, the recession did little to hurt the company’s financial situation. One potential explanation for its recession success comes from the â€Å"relationship between economic recession and [increased] consumption of alcohol and that heavy drinking behavior is unambiguously associated with unhappy feelings or dissatisfaction† (Anderson Moro, 2008). The widespread theory is that a sudden decrease in income has little affect or possibly a negative correlation with beer consumption. Quite possibly, this could explain why most vice companies trade with a beta less than 1. 0, indicating a negative relationship with the market. The Boston Beer Company is currently trading with a beta of 0. 85. In their most recent 10K, the company posted a year-over-year net income growth of 31. 74%. While this number appears very positive on the surface, it does not fully take into account a settlement the company received from its glass bottle supplier when the company had to issue a recall after routine inspections found glass particles in certain bottles. The recall affected approximately 25% of the company’s bottles and was completed by the fourth quarter. Nevertheless, the end result was the company â€Å"received a cash payment of $20. 5 million, which was recorded as an offset to operating expenses, and all parties have released each other of any claims as they relate to this matter† (The Boston Beer Company, Inc. , 2011). Comparison with Market Leaders While the Boston Beer Company has been experienced significant gains the past few years, it is still a minor player in the beer industry compared to the two leaders: Anheuser-Busch InBev and MillerCoors. These two companies combine for a total market share of just over 35%. The Boston Beer Company’s 2011 revenue of $558. 282 million is 1. 43% and 10. 80% of Anheuser-Busch InBev’s $39. 046 billion and SABMiller’s $5. 170 billion, respectively. While it cannot compete on revenue, the company can compete on productivity. The productivity ratio is computed as employees divided by revenue. The company’s productivity ratio of $664,620 per employee tops Anheuser-Busch InBev’s $336,600 per employee and MillerCoors’ $277,260 per employee. The company has repeatedly stated that its goal has never been to be on the same level as the market leaders. Instead, its goal is to be the leader in the better beer category, which includes Yuengling, Corona, and Heineken. In 2011, D. G. Yuengling and Son passed the company as the largest American beer-maker in sales, a title long held by Anheuser-Busch. The Boston Beer Company’s objective is to regain that title and grow with the better beer category. Stock Trends The Boston Beer Company has a very unique setup for their common stock. The company has 8,714,931 shares of Class A Common Stock outstanding and 4,107,355 shares of Class B Common Stock outstanding. Where the setup gets unique is that the Class A Common Stock only have voting power to approve certain mergers and elect a minority to the board of directors. The Class B Common Stock is held entirely by C. James Koch, Chairman of the Board of Directors, who has control over the majority of the board of directors and most other matters regarding shareholder approval. This gives Mr. Koch substantial control over his company and takes a large amount of power from the remaining shareholders. After reaching its lowest point in close to a decade at $19. 02 in May 2009, the Boston Beer Company (SAM) has rebounded to new levels. In fact, the stock reached its all time high of $119. 84 on June 19, 2012. Except for a decline of close to 25% of the stock’s value in early 2011, the increase has been steady and balanced since the low in 2009. One interesting note is the volume of shares traded in late 2007. Traders saw the stock rising quickly from $30 to $50 and felt it had a lot of volatility. This led to a sharp increase in trading activity that pushed the volume over 1. 5 million shares. Stock Performance Outlook As of late, stock analysts have conveyed mixed feelings about the company’s future stock outlook. According to Morningstar’s survey of four analysts, one rates the stock a buy, one rates it underperform, and two rate it a hold. This shows exactly how divided analysts are on the future of the stock. Since 2008, earnings per share has increased from $0. 56 to $4. 81, although the $4. 81 does take into account the settlement. Excluding the settlement, earnings per share in 2011 was $3. 73, still a 5. 97% increase over 2010. For 2012, analysts are â€Å"looking for full-year earnings of $4. 14, a projected 10% increase from last year. The next-year estimate is pegged at $4. 80, a solid 16% earnings growth projection† (Vodicka, 2012). If the company meets or exceeds these earnings projections, there is little doubt that it could continue climbing. Traders who are bullish on the stock believe it should continue growing with the craft brewery sector. They point toward the company’s recent run of hitting estimates, its healthy price to earnings ratio of 22. 57, and its recent investment in their brewing facilities to keep up with increased demand. On the other hand, bearish traders point toward the company’s high valuation premiums that are incorporated into the prices. If the company were to miss their upcoming quarterly earnings, it could ignite some traders to short the stock, potentially sending it spiraling. Key Success Factors. For firms to be successful over a long period of time, they must be aware of the key success factors that drive profitability in their industries. Key success factors are a set of issues that all companies operating in the industry must pay attention to in order to be successful. Quite simply, key success factors are something each company must have to accomplish long-term success. In his 2004 journal article, Richard A. Caralli explains that â€Å"every organization inherits a particular set of operating conditions and challenges that are inherent to the industry (or a segment of the industry) in which it chooses to do business. This results in a unique set of [key success factors] that organizations in a particular industry must achieve to maintain or increase their competitive positions, achieve their goals, and accomplish their missions† (Caralli, 2004). The beer industry in particular has three main key success factors. First, firms must have an advertising campaign that effectively reaches their target audience. For years, Anheuser-Busch has been the market leader by segmenting the way it advertises its different brands. Budweiser is marketed as the â€Å"King of Beers† and is known for its signature Clydesdale horses and vintage bottle design. On the other hand, Bud Light is marketed as â€Å"The Sure Sign of a Good Time. † Its commercials are designed for a much younger audience and are regularly voted as some of the most humorous on television. The other major beer makers seem to follow the same strategy of marketing their core brand as legendary and historic, while marketing the light varieties in a more humorous tone. A second key success factor in the beer industry is obtaining and maintaining a network of wholesale distributors. These distributors act as middlemen to transport the beer from brewers and importers to stores, bars, and restaurants. The approximately 3,300 distributors in the United States allow companies to focus more on brewing and marketing and less on delivery to the end user. The beer wholesaler industry is a very large industry in itself. The largest distributor, Reyes Beverage Group, delivers 93 million cases per year and has revenues of $1. 9 billion. Firms must keep in constant contact with these distributors to ensure timely and cost-effective delivery. The last major key success factor affecting the beer industry is knowledge of the consumer. To be able to effectively advertise for their brands, firms must have deep knowledge of their target audience. The beer industry is segmented into a variety of different divisions. Marketing a specific product incorrectly could be extremely costly. Miller is effectively targeting their target audiences with Miller 64 and Miller High Life. Miller 64, with only 64 calories, is intended for males and females age 35 and under, while Miller High Life is intende.

The Primary Obstacle To Success Marketing Essay

The Primary Obstacle To Success Marketing Essay The primary obstacle to success in international marketing is a persons self reference criterion (SRC) in making decision, that is, an unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decisions. The SRC impedes the ability to assess a foreign market in its true light. if we talk about in basic terms then SRC means to forget about self like if a company is going to some another country then the going company will have to take care about the culture etc of the host country and will have to forget about our culture like McDonalds when entered India they sold product aloo tikki burger in spite of their beef burger. In international marketing scenarios, we are talking about working in different cultural environments and hence a self referenced behaviour may not be the correct behaviour from the perspective target culture. Hence, realization of this difference of culture and the possibility of self reference criterion is important in internationa l marketing. This is not such a big issue in domestic marketing since the cultural difference is not major. Animals provide a good illustration of the impact of the SRC on the thinking process. Americans and Europeans commonly treat dogs as family members, addressing the animals affectionately and even letting dogs sleep on family members beds. However in Arab, view dogs as filthy animals. Some in the Far East go so far as to cook and eat dogs. A consumption habit viewed as revolting and compared to cannibalism by Americans. Hindus, in contrast, revere cows and do not understand how Americans can eat beef, especially in large quantity. In order to investigate a phenomenon in another country, a researcher or marketing manager must attempt to eliminate the SRC effect. The marketing challenge is to create a product that fits the needs of a particular culture. The presence of the SRC, if not controlled, can invalidate the result of a research study. Lee suggests a multi step approach to remove the undue influence of the SRC. First the problem should be defined in terms of the culture of the researchers home country. Second, the same problem is defined again, except that it is defined in terms of the cultural norms of the host country. Third, a comparison is made of the two cultural composites. Any difference noted between the composites indicates an existence of the SRC, necessitating another look at the problem with SRC removed. To illustrate the impact of the SRC, consider misunderstanding that can occur about personal space between people of different cultures. In the west, unrelated individuals keep a certain physical distance between themselves and other when talking to each other or in groups. We do not consciously think about that distance; we just know what feels right without thinking. When someone is too close or too far away, we feel uncomfortable and either move further away or get closer to correct the distance, we are relying on our SRC. In some cultures, the acceptable distance between individuals is substantially less than that comfortable to westerners. When they, unaware of another cultures acceptable distance, are approached too closely by someone from another culture, the unconsciously confusion results for the parties. Westerners assume foreigners are pushy, while foreigners assume westerners are unfriendly and stand-offish. Both react to the values of their own SRCs, making them all vict ims of a cultural misunderstanding. http://www.citeman.com/7414-the-self-reference-criterion-and-ethnocentrism-major-obstacles/ Ethnocentrism and the SRC can influence an evaluation of the appropriateness of a domestically designed marketing mix for a foreign market. If US marketers are not aware, they might evaluate a marketing mix based on US experiences (i.e. their SRC) without fully appreciating the cultural differences that require adaptation. Esso, the brand name of a gasoline, was a successful name in the United States and would seem harmless enough for foreign countries; however in Japan the name phonetically means stalled car an undesirable image for gasoline. Another example is Pet in pet Milk. The name has been used for decades, yet in France the word pet means, among other things, flatulence again, not the desired image for canned milk. Both of these examples were real mistakes made by major companies stemming from reliance on their SRC in making a decision. In US culture, a persons SRC would not reveal a problem with either Esso or pet, but in international marketing, relying on ones SRC could pr oduce an inadequately adapted marketing program that ends in failure. Question B To enter a foreign market, a manufacturer has a number of strategic options. Many companies employ multiple strategies. Polycentricity is a strong orientation to the host country. The attitude places emphasis on differences between markets that are caused by variations within, such as in income, culture, laws and politics. The assumption is that each market is unique and consequently difficult for outsiders to understand. Thus, managers from the host country should be employed and allowed to have a great deal of discretion in market decisions. A significant degree of decentralization is thus common across the overseas divisions. On the other hand egocentricity is a compromise between the two extremes of ethonocentricity and policentricity. It could be argued that this attitude is the most important of the three. Egocentricity is an orientation that considers the whole world rather than any particular country as the target market. A geocentric company might be thought of as denational ized or supranational. As such international or foreign departments or markets do not exist because the company does not designate anything international or foreign about market. There is a high likelihood that a geocentric company does not identify itself with a particular country. Therefore, it is often difficult to determine the firms home country except through the location of its headquarters and its corporate registration. A subculture is a distinct and identifiable cultural group that has values in common with the overall society but also has certain characteristics that are unique to itself. Subcultures are groups of people within a larger society. Although the various subcultures share some basic traits of the wider culture, they also preserve their own customs and lifestyles, making them significantly different from other groups within the larger culture of which they are a part. Indonesia, for example, has more than 300 ethnic groups, with lifestyles and cultures that seem thousands of years apart. There are many different ways to classify subcultures. Although race or ethnic origin is one obvious way, it is not the only one. Other demographic and social variables can be just as suitable for establishing subcultures within a nation. The degree of intra country homogeneity varies from one country to another. In the case of Japan, the society as a whole is remarkably homogeneous. Although some regional and racial diversities as well as differences among income classes are to be found, the differentials are not pronounced. There are several reasons why Japan is a relatively homogeneous country. It is a small country in terms of area, making its population geographically concentrated. National pride and management philosophy also help to forge a high degree of unity. As a result, people work together harmoniously to achieve the some common goals. One study of the relationship between ethnicity and lifestyles found significant differences among English, French, Italian, and Greek Canadians even when socio demographic variables were controlled. Greek Canadians, for example, are more brands loyal but dislike credit. Each ethnic group, due to size, may require a differentiated marketing strategy. Ethnically speaking, two prominent subcultures emerge: English speaking and French speaking. Studies have repeatedly shown that the French speaking and English speaking households differ from each other significantly in term of demographics, subculture, and consumption habits. French Canadians consumer behaviour is a cross between that of North Americans and that of the continental French, being both similar to and different from those of these two groups. Compare to the French, Quebecers are more direct, less dramatic and less formal. Compare to other English Canadians, Quebecers move far less often and thus have far less need to make long distance phone calls to relatives and friends. Subculture may provide an effective basis for market segmentation. In the case of the United States, African Americans, Hispanic Americans and Asian Americans spend around $750 billion annually and deserve marketing attention. American firms attempt to attract various sub cultural groups in many different ways. Carnival Cruise Lines has an entire cruise ship (Fiesta Marina) just for the Hispanic market. McDonalds has created a Mac Report series of Spanish infomercials. J C Penney has outfitted 170 stores to carry merchandise for Hispanic and African American consumers. ATT, MCI, and Sprint have advertised their long distance phone services in a variety of Asian dialects. One marketer offered native language coupons giving $24 discounts with each purchase to Chinese Americans. Unfortunately, 2 and 4 in some Chinese communities are close to the words easy and death respectively. Naturally, many customers do not want easy death. In another case, green baseball caps were offered as premi ums during a Chinese New Year celebration. Among older generations, a man wearing a green cap wants to bring public scorn on his wife by telling the public that his is cheating on him. Culture prescribes acceptable beliefs, traditions, customs and values that are then socially shared. Culture is subjective, enduring yet dynamic and cumulative. It affects peoples behaviour in diverse ways through logic, communication and consumptions. Although some cultural traits are universal, many others are unique and vary from country to country. And in spite of national norm, cultural differences as a rule even exist within each country. While there may be a tendency to misunderstand different cultures and subcultures, this temptation should be resisted. Being the force that it is, the culture of one country should not be judged as superior to the culture of another country. Each culture has its own particular values and social practices, and the international marketer will be much further ahead if he or she tries to walk in the other persons shoes in order to understand more clearly that persons concerns and ideas. It is also more important to know what a person thinks than w hat that persons language is. Because of the great differences in language and culture around the world, any firms need to adjust their approach to solving marketing problems in different countries. In a foreign cultural environment, the marketing plan that has worked well at home may no longer be effective. As a result, the firms marketing mix may have to undergo significant adaption and adjustment. However, effective marketing in this environment will thus mandate that the company be culturally responsive. BIBLIOGRAPHY 1. International marketing, Analysis and Strategy, Third edition by Sak Onkvisit John J Shaw chapter 1, 6, 9 2. International marketing, European edition by Cateora and Ghauri chapter 1, 6 3. Marketing across cultures, 4th edition by J C Usunier and J A Less Part 1 (1,23), Part 2 (4, 7)

The Gentle Art of Web Pages Essay -- Web Internet Design Essays Papers

The Gentle Art of Web Pages For the last millennium, adventurous souls have been accessing new and unfamiliar frontiers in search of adventure and a taste of the exotic. The last decade ushered in with it an appeal to the more intrepid members of this small group of people: The Internet. Access to this particular medium has hit an all-time high in the 1990's, and every tekkie has his own celebration of self occupying space on it. However, not all of the sites on the Internet are shameless celebrations of self. Some of these pages can be found to have their roots in the archaic designs of the past; some are the logical progression for a technological innovation such as the internet. One of these progressions, cyberpunk, the 90's answer to the technological underdog, has made its presence known on the Internet; science fiction pages also abound. These sites have brought with them some of the most innovative and artistic features of hypertext mark-up language (HTML) ever conceived. One site in particular, the Sci-Fi Channel homepage, Sci-Fi Channel: The Dominion , has properties unlike any other seen on the Internet. Sci-Fi Channel: The Dominion is the shining example of a good web site because it contains the characteristics of a flawless page: the information is concise and well-organized, the graphics displayed are both aesthetically pleasing and practical, it contains features that are not seen anywhere else, and it is easy to use and understand. The creators of the Sci-Fi channel felt it their professional obligation to carve out their own section of cyberspace; hence the existence of the page at "http://www.s... ...enced web surfers and internet neophytes will find this page easy to use and understand. The first hurdle overcome by the designers (which is getting users to find and understand the site), the visitor can now concentrate on delving deeper into the site. Sci-Fi Channel: The Dominion is one of the most innovative web sites on the Internet at this time. It's use of aesthetically pleasing and practical graphics, of HTML features not seen anywhere else, and of information which is concise and well-organized, as well as the fact that it is easy to use and understand make this the template from which all other homepages should be made. What's more, the fact that it is a commercial site makes it more credible than a one made by a fan of the channel. As a result, the Internet would be easier to utilize and more accessible, catapulting society into the 21st generation.

Infant Motor Developm

Infant Motor DevelopmentI.   First MonthA.  Ã‚  Ã‚   can already raise its head for a momentB.  Ã‚  Ã‚  Ã‚   twists its head from side to side when lying on rearC.  Ã‚  Ã‚  Ã‚   hands remain grittedD.  Ã‚  Ã‚   has already a sturdy clutch reflexE.  Ã‚  Ã‚  Ã‚   stares and goes after object moving ahead of him/her (range of 45 degrees)F.  Ã‚  Ã‚  Ã‚  Ã‚   performs husky soundsG.  Ã‚  Ã‚   gazes closely at parents when they speak to him/herII.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Second MonthA.  Ã‚  Ã‚   raises its head about 45 degrees when resting on stomachB.  Ã‚  Ã‚  Ã‚   head nods forward when grasp in sitting positionC.  Ã‚  Ã‚  Ã‚   clutch reflex declinesD.  Ã‚  Ã‚   goes after hanging objects with eyesE.  Ã‚  Ã‚  Ã‚   makes smilesIII.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Third MonthA.  Ã‚  Ã‚   begins to stand partial load on both legs when clutched in a standing positionB.  Ã‚  Ã‚  Ã‚   able to grasp head up when sitting but still nods frontwardC.  Ã‚  Ã‚  Ã‚   can lift head and shoulders when resting on stomach (amid 45 and 90 degrees)D.  Ã‚  Ã‚   stands load on forearmsE.  Ã‚  Ã‚  Ã‚   grasps objects but does not get in touch with themF.  Ã‚  Ã‚  Ã‚  Ã‚   grasps own hands and drags at bedspreads and clothesG.  Ã‚  Ã‚   goes after object (180 degrees)H.  Ã‚  Ã‚   makes more soundsI.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   smiles when sees recognizable features.IV. Fourth MonthA.  Ã‚  Ã‚   has already a fine head controlB.  Ã‚  Ã‚  Ã‚   sits with helpC.  Ã‚  Ã‚  Ã‚   stands some load on legs when clutched erectD.  Ã‚  Ã‚   lifts head and chest off plane (90 degree angle)E.  Ã‚  Ã‚  Ã‚   turns from back to sideF.  Ã‚  Ã‚  Ã‚  Ã‚   discovers and plays with handsG.  Ã‚  Ã‚   attempts to get in touch with but missesH.  Ã‚  Ã‚   clutches objects with two handsV.   Fifth MonthA.    sign of teething startsB.    grasps head up when sittingC.    turns from abdomen to rearD.    p laces feet to mouth when resting on rearE.      freely holds objects and gets objects openly to mouthVI. Sixth MonthA.  Ã‚  Ã‚   starts to masticate and nibbleB.  Ã‚  Ã‚  Ã‚   raises head when dragged to a sitting positionC.  Ã‚  Ã‚  Ã‚   turns form rear to abdomenD.  Ã‚  Ã‚   holds and manages small objectsE.  Ã‚  Ã‚  Ã‚   clutches bottleF.  Ã‚  Ã‚  Ã‚  Ã‚   seizes feet and drags to mouthG.  Ã‚  Ã‚   bends body to make out an objectH.  Ã‚  Ã‚   twists head from side to side and then stares up or downVII. Seventh MonthA.   learns to sit without help (may bend forwards on two hands)B.   stands full load on feetC.   springs when grasped in standing positionD.    shifts objects from one hand to anotherE.    hits objects on planesF.      and able to grip on small objectsVIII.      Eight MonthA.    sits fine without helpB.      stands load on legs and may rest holding on to fixturesC.      lifts out up objects by index, fourth, and fifth fi nger alongside thumbD.  Ã‚  Ã‚   able to discharge objectsE.      drags cords to get objectsF.       seeks for objects that are farIX.    Ninth MonthA.  Ã‚  Ã‚   starts swarmingB.  Ã‚  Ã‚  Ã‚   drags up to standing position from sittingC.      sits for extended time (at most 10 minutes)D.    employs thumb and index finger to lift up objectsE.      places arms ahead of face to shun having it washedX.    Tenth MonthA.    goes from abdomen to sitting positionB.    sits by rundownC.   recuperates balance effortlessly while sittingD.    raises one foot to make a step while standingE.      wields byeF.      recurs actions that draw attentionXI.    Eleventh MonthA.  Ã‚  Ã‚   learns to stroll gripping on to fixtures or other objectsB.  Ã‚  Ã‚  Ã‚   puts one object following another into a potC.  Ã‚  Ã‚  Ã‚   returns back to lift up an object while sittingD.  Ã‚  Ã‚   able to control objects out of stretched fitting placesE.  Ã‚  Ã‚  Ã‚   turns a ball when requested, and quakes head for rebuffXII.   Twelfth MonthA.  Ã‚  Ã‚   strolls with one hand graspB.  Ã‚  Ã‚  Ã‚   bears and tries first steps unaidedC.  Ã‚  Ã‚  Ã‚   rests from standing position aloneD.  Ã‚  Ã‚   tries to construct two chunk towers but may fall shortE.  Ã‚  Ã‚  Ã‚   goes after fast moving objectsF.  Ã‚  Ã‚  Ã‚  Ã‚   grips to parents in odd circumstancesG.  Ã‚  Ã‚   seeks object where it was previously seenReferences:Piek, J. P. (2006). Infant Motor Development. Human Kinetics Publishers.Gallahue, D. L. (2006). Understanding Motor Development: Infants, Children, Adolescents,  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Adults. McGraw-Hill Companies.