Sustainable Growth and Economic Development - 1094 Words

Economic growth has been used with other terms such as development, modernization, westernization and industrialization. It is, in other words, a transition from a simple, low-income economy to a modern, high- income economy. Its scope includes the process and policies by which a nation improves the economic, political, and social well-being of its people. Though it is often measured by rate of change of gross domestic product, it is generally understood in terms of increase in per capita income, and attainment of a standard of living equivalent to that of industrialized countries. Economic growth implies a change in the way goods and services are produced, not merely an increase in production achieved using the old methods of†¦show more content†¦There are other views that consider environmental and social challenges as opportunities for development action. This is particularly true in the concept of sustainable enterprise that frames these global needs as opportunities for private enterprise to provide innovative and entrepreneurial solutions. This view is now being taught at many business schools in the West. Sustainable development is said to set limits on the developing world. It is being argued, while current first world countries polluted significantly during their development, the same countries encourage third world countries to reduce pollution, which sometimes impedes growth. Sustainability requires that human activity only uses nature s resources at a rate at which they can be replenished naturally. Theoretically, the long-term result of environmental degradation is the inability to sustain human life. Such degradation on a global scale could imply extinction for humanity. In the Indian context, infrastructure development is critical for sustainable growth. It is often noted that poor infrastructure—a lack of water and sanitation, shoddy roads, and unpredictable energy supply- constrains foreign direct investment and overall economic potential. A key issue is of attracting private investors willing to participate in infrastructure projects given their complex and risky nature. Cases of corruption andShow MoreRelatedThe Between Science, Policy And Sustainability1103 Words   |  5 Pagesthat there are limits to growth is not new to science. The debate that exponential population growth and economic growth, coupled with natural resources depletion, cannot be sustained has started already a few centuries ago with a ground-breaking publication: â€Å"Essay on the principle of population† Thomas Malthus in 1798. With more scientific knowledge developed around this debate, a reverse strategy was formed on the international political agenda called Sustainable Development, and nowadays became aRead MoreThe Concept Of Sustainable Development Essay1654 Words   |  7 PagesThe concept of sustainable development is generally understood in two similar but differing perspectives. The first of these is the social-scientific definition explicated most frequently in relation to the 1987 report of the Brundtland commission.1 This report defines sustainable devel opment as our â€Å"...ability to make development sustainable—to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs†2. The second perspectiveRead MoreSustainable Development : The Definition Of Sustainable Development1432 Words   |  6 Pagesterm sustainable development has gained a lot of attention, however, it has since been overused to a point of saturation where it has lost the influence it previously elucidated and become a jargon for developers and slogan for environmentalists. What does sustainable development mean? For years scholars have tried to define and articulate the concept of sustainable development which has led it to become an oxymoron of sorts. Over a century before the use of phrase sustainable development cameRead MoreAchieving Sustainable Development Within Developing Countries1252 Words   |  6 Pages Achieving sustainable development within developing countries is one of the greatest challenges facing the international community today. Developing countries are the most vulnerable to environmental concerns and are the least able to address them due to their lack of capital and technology. Environmental concerns such as climate change combined with economic concerns such as poverty create a negative cycle which makes it increasingly difficult to solve either problem. With the adoption of the ParisRead MoreHigh Efficiency Technology And Its Impact On Economic Development1407 Words   |  6 Pagescommonly associated with large-scale industrial economic development. In the past, large loans to governments to address this need have often resulted in misuse of funds from a social and environmental perspective. Microloans a ssist in the purchase of drip irrigation systems and the provision of funds to train labor in low/no-till farming practices allow the advancement of farming in an ecological way. Guy Vincent focuses on sustainable development relative to individuals who are caught within theRead MoreOverview of Sustainable Industry in Malaysia.655 Words   |  3 PagesOverview of Sustainable Industry in Malaysia. The 2014 was a huge success to government which a total 396.61MW of renewable energy approved by the Sustainability Energy Development Authority and its represent a total 466% year-on-year growth. The increase of the renewable energy represent years of planning and execution by relevant authorities to regulate and draft policies that suits Malaysian environment. As sustainable industry and climate change are interrelated, often the regulation and policiesRead MoreCritically Assess The Concept Of Sustainable Development Essay1661 Words   |  7 PagesCritically assess the concept of Sustainable Development The concept of sustainable development is generally understood in two similar but differing perspectives. The first of these is the social-scientific definition explicated most frequently in relation to the 1987 report of the Brundtland commission.1 This report defines sustainable development as our â€Å"...ability to make development sustainable—to ensure that it meets the needs of the present without compromising the ability of future generationsRead MoreSustainable Development1618 Words   |  7 PagesQ. Sustainable Development? Ans:. Sustainable development refers to a mode of human development in which resource use aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come. The term sustainable development was used by the Brundtland Commission which coined what has become the most often-quoted definition of sustainable development: development that meets the needs of the present withoutRead MorePublic Discourse Surrounding Conceptions Of Sustainability Definitions And How That Impedes The Development Of A Sustainable Society1651 Words   |  7 PagesPublic Discourse Surrounding Conceptions of Sustainability Definitions and how that Impedes the Development of a Sustainable Society Nicholas Dawson 9/14/2015 University of Southern Queensland Student Number: W0025726 â€Æ' The definition of sustainability varies widely depending on the context in which the concept of sustainability is used. As Herman Daly (1996) put it, â€Å"Sustainable development is a term that everyone likes, but nobody is sure of what it means. The term rose to the prominenceRead MoreThe Poverty Of The United States1531 Words   |  7 PagesPoverty? â€Å"). From sea to shining sea, more than 15 percent of the American population live in poverty, a total of people over 46 million. Many who live in poverty within the United States live in areas that were once thriving from the country’s economic growth that are now only sad remnants such as the Deep South and Rust Belt cities. The history of poverty in America is nothing recent by far, yet the thought and actuality of a rise in poverty levels in such a wealthy country has been alarming to notice

I Disagree With Kenneth Waltz’S Positionthat Nuclear...

I disagree with Kenneth Waltz’s position that nuclear proliferation makes the world a safer place, and how best to measure the spread of nuclear weapons, particularly in regimes that are developing, unstable, or â€Å"third-world.†1 While some scholars see nuclear weapons as a threat to stability and peace due to their mass destruction capability and the potential for horrific fallout triggered by ethnic and geopolitical instability, others see those weapons as holding the power to maintain an appropriate balance of power between opposing regimes at times of tension and during periods of low level conflict. This debate is reflected in international relations. Waltz argues that nuclear weapons keep the world secure, as states would not take the†¦show more content†¦As for second-strike deterrence, Waltz states that there are two necessities: survival of a first attack and the ability to inflict sufficient damage. Without absolute certainty of destruction of the opposition’s arsenal, a country would be less likely to attack. Because of uncertainty about the size of another country’s arsenal size, nations would not take the risk of retaliation; â€Å"Even the largest states recoil from taking adventurous steps if the price of failure is the possible loss of a city or two†1. The problem I see with this position is that nations may sometimes benefit from spotting â€Å"signatures† that are carelessly sent to enemy intelligence agencies which may inadvertently reveal secret information about the size and location of otherwise â€Å"hidden† military forces. For example, Pakistani road construction crew s inadvertently signaled the location of secret M-11 missiles by placing wide-radius roads at Sargodha Missile Base . The failure of the Soviet military to keep its 1962 missile deployment in Cuba secret was similarly caused by construction crew routines that produced â€Å"signatures† which highlighted the location of the missiles. The â€Å"Star of David† pattern of air defense missile battery placements and â€Å"slash marks† on missile pads gave away the Cuban secret to the Americans. Regarding the accidental use of nuclear weapons, Waltz dismisses this

Managers motivate workers Free Essays

Frederick Hertzberg came up with a two factor theory of motivation also referred to as the Hygiene theory. According to Hertzberg, there are factors in the work place that cause job satisfaction and these he called them motivators. On the other hand, there are factors whose absence causes job dissatisfaction. We will write a custom essay sample on Managers motivate workers or any similar topic only for you Order Now The factors that cause satisfaction are a complete contrast to those that cause dissatisfaction. For instance whereas recognition causes satisfaction, supervision leads to dissatisfaction. According to Hertzberg, managers motivate their workers in the following ways:- recognition, growth, achievement job interest,   responsibility and advancement. These factors would make workers feel motivated in the work place. On the other hand factors such as salary, security, company policy, work conditions and supervision fall under hygiene factors. Their presence or lack of it does not necessarily motivate the employees rather causes dissatisfaction. (Michael, 2000) Responsibility: – When workers feel responsible for their work, they feel motivated. They need to be in touch to their work. The best way managers can motivate their workers therefore is by giving them more authority and autonomy over their jobs. Employees with good performance should also be given more responsibilities as a way of improving their motivation levels. Work itself: – Employees feel motivated when they feel that the work they do is significant and relevant. Managers should try to make use of what the employees have done so that they can be able to see that whatever they are doing is meaningful. Growth: – People desire to work more when the work is challenging as well as interesting. Managers therefore ought to make the jobs interesting and also challenging. The expected outcome of this is that the turnover rate of employees shall reduce. Failure to do this will cause demotivation on the part of the employees. (Harris, Desimone, 1994) Advancement: – Workers can be motivated through trainings and development. They feel motivated when something is done that improves their careers. Managers can also use Hertzberg’s two factor theory in the following ways to motivate their workers: Make workers specialize in doing specific tasks. This would make them become experts in their respective fields. Make workers to be more accountable in all that they do Come up with new and more challenging tasks Allow workers to perform whole work units to do as opposed to piecemeal work. With this, they feel motivated when the outcome of the work is associated with them.(Alkhafaji,2003) I do not agree with the fact that the hygienes are only associated with job dissatisfaction and not motivation. Look at remuneration/salary. Does it mean that one would not be motivated if his/her salary is increased? My answer tends to be a â€Å"yes†. It can be both a hygiene and motivational factor. The distinction of a factor being either a hygiene or motivator is not true. My second reservation is that when a worker is given someone’s responsibility that would motivate such a worker. In my opinion, this would bring about animosity amongst the employees. The role of a manager a)  Ã‚  Ã‚  Ã‚  Ã‚   Manager as planner: – Managers play the role of planning the firm’s activities. They determine what is to be done, who is to do what how and when this is to be done. b)  Ã‚  Ã‚  Ã‚  Ã‚   Control: – Managers are the ones who control the activities of the organization so that they are performed as planned with the aim of correcting any deviations from the norm. c)  Ã‚  Ã‚  Ã‚  Ã‚   Facilitator/ Coordinator: – Managers integrate the work of employees so that each worker performs his duties and that nothing is duplicated. REFERENCES 1.  Ã‚  Ã‚  Ã‚  Ã‚   David M Harris, Randy L Desimone; Human Resource Development, Dryden press publishers,1994 2.  Ã‚  Ã‚  Ã‚  Ã‚   Abbas F Alkhafaji, Strategic Management: Formulation implementation and Control in a Dynamic Environment, Haworth press, 2003 3. Michael L, Understanding Business Environment; Routledge, 2000    How to cite Managers motivate workers, Essay examples

Immigration Analysis Essay Example For Students

Immigration Analysis Essay annonIn 1886 the statue of Liberty Enlightening the World, a gift fromthe people of France, was dedicated by President Grover Cleveland. Set atthe entrance to New York, the statue was just in time to greet the biggestmigration in global history. Between 1880 and World War I, about 22 million men, women, andchildren entered the United States. More than a million arrived in each ofthe years 1905, 1906, 1907, 1910, 1913, and 1914. Not everyone had to travel in steerage. Passengers who couldafford the expense paid for first- or second-class quarters. Upon arrivalthese immigrants were examined by courteous officials who boarded the shipsat anchor. But those in steerage were sent to a holding center for a fullphysical and mental examination. The facility at Ellis Island which openedin 1892 could process up to 5,000 people a day. On some days between 1905and 1914 it had to process more than 10,000 immigrants a day. Many arrivals had left their homelands to escape mobs who attackedthem because of their ethnicity, religion, or politics. The German,Russian, Austro-Hungarian, and Ottoman (Turkish) empires ruled over manydifferent peoples and nationalities and often cruelly mistreated them. Until 1899, U.S. immigration officials asked arrivals which nationthey had left, not their religion or ancestry. So oppressed people werelisted under the countries from which they fled. Armenians who escapedfrom Turkey were recorded as Turks, and Jews who had been beaten by mobs inRussia were listed as Russians. This so called new immigration was different in many other waysfrom previous immigration. For the first time, Catholic an Jewishimmigrants outnumbered Protestants, and still other arrivals were Muslims,Buddhists, or Greek or Russian Orthodox church members. Until 1897, 90 percent of all overseas immigrants had come fromProtestant northern and western Europe. Many of these nations haddemocratic traditions and education systems. Even among the poor, many hadspent a few years in school or had acquired some industrial skills on thejob, and more than a few spoke English. Many of these men and womensettled in agriculture regions of the Untied States. Their goal was to buyreadily available land and start small family farms. The people of the new immigration differed from earlier arrivals onother ways. Very few spoke English, and some could not read or write anylanguage. Most were Catholic, but ten percent were Jewish. All of this was soon proved to be not true. Only one third wereactually illiterate, and 90 percent of those who could not speak Englishlearned to do in less than ten years after they arrived. Their staminahelped make America an industrial giant and the worlds economic power. The new immigrants came at a turning point in American growth. Bosses rarely knew their workers. Class animosity often divided managementand labor. Corporations showed little interest in their workers. Instead,these business sought to maximize profits. To lower wages, plant managers often tried to pit one racial,religious, or ethnic minority against another to keep the pot of hostilityboiling. A labor paper reported that employers were keeping up a constantwar of the races. Bosses placed spies among their employees so they couldreport troublemakers any who urged workers to organize unions.

Starbucks Risk Assesment free essay sample

Contents 1. Launch of a new product/service2 1. 1 Flowchart for launch of a new product/service2 2. Reasons for a Failed Product Line2 2. 1 Adverse Environment Conditions2 2. 1. 1 Industry Competition2 2. 1. 2 Political Implications2 2. 1. 3 Economic Events2 2. 1. 4 Evolving Social Factors2 2. 2 Error in forecast of consumers’ response2 2. 2. 1 Incomprehensive Market Analysis2 2. 3 Ineffective Product Launch2 2. 3. 1 Wrong Timing2 2. 3. 2 Unprofitable Product2 2. 3. 3 Inadequate Support2 3. SWOT Analysis2 3. 1 Strengths2 3. 1. 1 Wide range of products sold through numerous locations2 3. 1. Strong Brand Equity2 3. 1. 3 Excellent Research and Development capabilities2 3. 1. 4 Relationships with established players2 3. 1. 5 The Starbucks Experience2 3. 2 Weaknesses2 3. 2. 1 Criticism and controversies dilute brand value2 3. 2. 2 Lack of Diversification2 3. 2. 3 Product recalls affect margins and brand image2 3. 3 Opportunities2 3. 3. 1 Growth through acquisitions and partnerships 2 3. 3. 2 Introduction of Starbucks VIA coffee essence in Japan and China2 3. 3. 3 Rapid expansion in China and entrance into a new market – India2 3. 4 Threats2 3. 4. 1 Rising prices of raw ingredients2 3. 4. Increasing health consciousness among Americans could affect demand2 3. 4. 3 Increasingly stiff competition from other giants like McDonalds and Dunkin Donuts2 4. Emerging/Current Trends2 4. 1 Health-conscious customers2 4. We will write a custom essay sample on Starbucks Risk Assesment or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 2 Brand erosion due to changes in pricing and new product offerings2 4. 3 Strategic alliance with Green Mountain Coffee Roasters2 4. 4 Implication for strategic objectives and strategy formulation:2 5. Risk prioritization for Starbucks2 5. 1 Risk of losing market share due to stiff competition2 5. 2 Commodity price risk2 5. 3 Currency risk2 5. 4 Supply chain disruption risk2 5. Risk of changing consumer preference2 5. 6 Risk of failure and breach of security of IT systems2 5. 7 Product liability2 5. 8 Risk of Non-Compliance with Laws and Regulations2 5. 9 Risk of loss of key personnel2 5. 10 natural hazard risk2 5. 11 Risk Map2 6. Risk Responses and control devices/activities2 1. Launch of a new product/service Being in a heavily competitive market, the need for lean, rapid and profitable new product development has never been more pressing. This is especially so as product life cycles are getting shorter and customers are more demanding as they are now spoilt for choice. Starbucks introduces on average, one new product each day. It is important for Starbucks to keep this trend going and constantly innovate to keep a step ahead of its competitors. Starbucks believe that it is not just about getting new customers; it is also about keeping the old ones interested. Hence they constantly engage in efforts to develop new ideas, products, and experiences for its customers. CEO Howard Schultz and other senior executives honed in the importance of always being open to re-inventing the Starbucks experience. In fact, at Starbucks, consumer input is an important part of their development process. A website was set up to encourage contribution of ideas, facilitate discussions and even allows consumers to see the development of their ideas. Starbucks has a dedicated Research Development team whose job is to constantly design and develop their food and beverages. Expenditures allocated are high each year (2010: $9million, 2009: $7million and 2008: $7million) as Starbucks continues to invest in technical research and development activities, in addition to customary product testing and product and process improvements in all areas of its business. The first step to launching a new product is idea generation. At Starbucks, brainstorming sessions are conducted and consumers’ suggestions on the company’s website are taken into account. Next, these ideas are screened and those which are perceived to be the least likely to succeed will be eliminated. The filtering is first done through discussions between both the staffs and the consumers on their website before being reviewed by Starbucks’ Idea Partners. These partners include not only food scientists from the RD team but also the environmental impact manager. This ensures that ideas which seems feasible to the RD team will also incorporate sustainability into all aspects of its operations. By doing so, Starbucks would ensure that new products will sell well and at the same time fit in with the company’s image, vision and strategic objectives. The third step would be concept development and testing which will require formal evaluations of the product concept by consumers, usually through some form of marketing research. At Starbucks, in testing new products, extensive in-house taste-testing and research done via focus groups are carried out. At each focus group, participants â€Å"taste it, grade it and then tasted it again† to ensure effective and accurate results. From here, ideas which are selected will then be analyzed for its marketability and costs. This is referred to as the business analysis stage whereby both market and product analyses would be carried out. The market demand would be determined and the feasibility of production would be assessed. However, should sales price set be unable to cover the production cost, the idea would be discarded as it would not be economically viable. For ideas approved thus far, Starbucks will first gradually launch these new products to a selected market. This test in an actual market is a step further from the stimulated market assessed during the focus groups. However, as opposed to jumping into the water with both feet, Starbucks tends to take a more cautious approach and engage in a state by state product launch (in the US) to affirm the market analysis previously performed and then reassess the feasibility of introduction of the product in its cafes around the world. As for products which are poorly received by the market, they will be pulled back for reconceptualisation or even be discarded altogether. Lastly, commercialisation takes place. This is the point where the product will be introduced to all markets. Starbucks generally relies on their interactive website to introduce and promote the new products to their customers since new products are consistently introduced and it may be too costly to advertise each time. Taking a step further, Starbucks will continue to improve on new products through the feedbacks it gathers from its customers in an effort to keep customers happy and satisfied. Due to the nature of the products sold by Starbucks, relatively small investments are required throughout the development of new products. However, it was noted that some products took up to a year before being introduced to the market. In this aspect, the development process should be sped up in order for Starbucks to ensure competitiveness and have an edge over its competitors. The flowchart below (Figure 1) depicts the process for the launch of a new product/service from its initial conception to its retail sales to customers. 1. 1 Flowchart for launch of a new product/service Figure 1 2. Reasons for a Failed Product Line Starbucks has a ubiquitous presence in the international cafe scene and recent years have witnessed it introducing new concepts and products. However, while some were embraced by its consumers, others suffered the fate of being withdrawn from the stores. Examples of failed products include: the Blackberry Green Tea Frappuccino, Organic Milk and Orange Mocha Frappuccino. A product is a failure when its introduction into the market is subsequently followed by its withdrawal; with reasons attributed to its unprofitability, the inability of it to go through its anticipated product life cycle or realise a sufficient share of the market to ensure sustainability in the market. There are various factors which can culminate in its failure and the product is not necessarily an inferior good. Figure 2 below, presented in the form of a fault tree diagram, illustrates the circumstances in which a product may fail in the context for Starbucks. The three direct reasons identified for product failures at Starbucks are the adverse environment, error in the forecasting of consumers’ response and an ineffective product launch. These causes are further examined with respect to their causal constituents and discussed extensively. Suggestions would also be proposed to management to ensure that future product development, design, strategy and implementation will be more successful. . 1 Adverse Environment Conditions To investigate the influence the environment may have on the success of a product in the market, we take into consideration the relevant macro-environmental factors, a component of strategic management. Due consideration should also be given to the micro-environment, which is the industry analysis with reference to Porter’s five forces. 2. 1. 1 Industry Comp etition Industry competition has always been very real in all businesses. Starbucks as an international coffeehouse chain faces both global and domestic rivals. In a competitive industry, a company not only has to monitor its competitors’ moves, but it also has to preempt them; failure of which would diminish its competitive advantage over its rivals, and hence dampen the success of a new product. Thus, Starbucks has to be constantly updated of its competitors’ products and their upcoming launches so as to prevent introducing a product that has a relatively lower perceived utility to the consumer. In view of globalization, the company can easily get information on its rivals, albeit more time has to be spent on such industry analysis since the rivalry scene spans globally. Moreover, it needs to continuously innovate and maintain a sustainable competitive advantage lest its products become obsolete over time. Effort should also be spent on building the brand image and establishing customer loyalty through the use of membership cards to encourage consumers to return back to Starbucks and support the current and new range of products offered. This differentiation would also address the threat of substitute products. Starbucks prides itself on premium pricing, hence its products have to be differentiated otherwise consumers would easily choose the low priced ones over the newly introduced products. The constant innovation, building of brand loyalty and offering of differentiated products also serve as a barrier to entry for new entrants as they cannot easily replicate the Starbucks formula and make profits from them which may dilute the potential profits Starbucks can gain. 2. 1. 2 Political Implications Political implications may culminate in the failure of a product when the government intervenes in the form of new policies passed. Events such as minimum wage laws, tax policies, trade embargoes and tariffs may affect the profitability of the product offered and hence diminish its success. Moreover, trade restrictions may effectively impair the import or export of products such as bottled coffee to another market while regulations with respect to food can directly affect its feasibility to be offered to consumers. Losses may be sustained in terms of the sunk costs and effort put into it before the launch of the product itself. Time would be needed for accommodation to the changes and this delay could prove detrimental if competitors have a first mover advantage. Thus, Starbucks has to assess the political climate and stay updated with regard to the policies in place. This is especially so when deciding to venture into new countries as part of its international strategy because certain countries have erratic governmental policies. 2. 1. 3 Economic Events Economic events, particularly black swan events like the recent financial crisis in 2008 may also lead to a failed product line. An unexpected economic downturn would deem the previously forecasted figures overly optimistic when demand plummets due to the fall in disposable income of consumers. The lack of demand for the product would not justify the costs of rolling out or continuation of its production. This premature withdrawal of the product from the market in the face of an economic crisis will thus be labeled a failed product. Thus to accommodate for such events, Starbucks should mete out plans incorporating sensitivity analysis for the worst case scenarios. It should not just benchmark the scale of its launch to that of its competitors, but only to the scale which corresponds to its loss appetite. Its primary mission is to sell its products to the consumers. Hence, even if the economy is burgeoning, it should not speculate and invest heavily on the wave. The risks should still be assessed and hedged. As discussed previously, other economic events with similar results would be the revision of economic policies. 2. 1. 4 Evolving Social Factors Evolving social factors also play a pivotal role in affecting the environment, and the forecast of consumers’ response which will be discussed later. More often than not, the cradle to the launch process of a product takes a significant time period, after factoring in the development process and time needed for research and marketing efforts. Hence, when the product is ready for launch, the demographics might have already changed. The impetus of developing a product is to cater to the consumers; thus when demographics have evolved, the target group might have changed in composition or size. Demand for the products may not be as effective as planned and there is a necessity to divert the marketing efforts to focus on the more relevant targets. Thus, Starbucks should strive to be more efficient in its development process to keep up with the social environment. It also has to monitor its target group closely so that if there is a need to, it would be cheaper to pull out before the whole product development process is complete. This issue is homogenous to a change in customer preferences. Market analysis is usually done before the development of the product, hence Starbucks may be subject to the whims and fancies of the fads in the society which may alter consumer preferences. A new concept or product such as a yoghurt cafe introduced by other competitors may change the trend and induce consumers to stray away from the products Starbucks is planning to offer; the promotion of a theme based lifestyle such as a focus on organic products would also increase the probability of a product failure should it not fit in line with the trend. Thus it can be proposed to the management for them to conduct market surveys throughout, till and after the launch of the product to constantly monitor the market situation. 2. 2 Error in forecast of consumers’ response The success of a product is also contingent on the response from the target customers. The demand is usually forecasted through market analysis based on the characteristics of the consumers and trends in the market. Ineluctably, the evolving social factors may skew the market analysis conducted if there is a significant time lag between the study done and the introduction of the product into the market. The anticipated demand failing to live up to expectations creates an oversupply that would bog down profits should they have low turnover or have to be sold at a loss. Undeniably, the forecast can also be erroneous due to great reliance on a market analysis where not all factors are fully taken into consideration in deliberation of the decision to launch a product. 2. 2. 1 Incomprehensive Market Analysis A forecast error can be attributed to an incomprehensive market analysis conducted and not merely due to the changing environment or the subjects in the analysis. Currently, Starbucks is present in more than fifty five countries and though aligned with their international strategy, it may be tedious on Starbucks’ part to have an in depth analysis of each market. A product or even a whole concept may fail if the organization neglects â€Å"glocalization†. Glocalization is a term coined to illustrate the imperative to cater the product for each individual local market for globalized companies; seldom will there be a one-size-fits-all product that will be embraced by all global consumers. Therefore, if a company fails to identify the distinctiveness in the local scene and capitalizes on the wrong trend and behaviors of the consumers, its product may fail to generate the expected demand and miss the target for sustainable market share. A case in point is the closure of 61 out of 84 stores in Australia because it failed to understand the Australian cafe culture and resulting in it products failing to cater to majority of the locals. Starbucks can consider venturing into countries through joint ventures as the locals would definitely be better versed in the local markets and be able to identify the inherent culture more effectively and efficiently. Management may also be overly optimistic with the market analysis results investing too heavily into the introduction of the product into the market, resulting in greater repercussions when sales are barely able to cover the investment made. The product would then be a failure; which could otherwise turn out to be a small success if the management had not been too ambitious over the launch. An inadequate market analysis could also be due to an overestimated market size and this manifests itself two fold when fueled by optimism. A supposedly smaller than estimated market share may not justify the efforts to launch the product in the first place. Hence management should consider the former solution of a venture partnership to tap on local expertise. If it prefers to have full control, it should engage marketing experts in the local scene who are more experienced and more likely to generate trustworthy estimates. That being said, Starbucks, while relying on the market analysis performed, should also consider working along together with their finance department more closely in examining the financial feasibility of the launch of a product into the market too. The finance department would also have their own set of estimates for the market share and thus provide for sensitivity analysis to measure the threshold, optimal amount and feasibility of the product launch. There is also a possibility of targeting the wrong group of consumers. This can occur when results are misinterpreted and certain assumptions made are erroneous, resulting in an inaccurate stand on the suitable target group for the products. Consequently, advertising and marketing efforts would be directed towards the wrong consumers, and these may prove futile. The product fails to reach out to its intended customers and may fail consequently. In another scenario, the product is developed and catered erroneously to a specified group of consumers who are not suited to it. Although these possibilities are remote, we should not preclude them. This can easily be remedied by concerted efforts to direct the marketing and advertising to the intended consumers provided there is no significant time lag, lest the consumers view the product as obsolete and a failed product to others that is now targeted at them. An incomprehensive market analysis can also occur when the price strategy set is inappropriate for the market. Starbucks prides itself on the high quality coffee beans which it uses for its coffee and this differentiating factor permits them to pursue a premium price strategy. However, individual markets have differing standards for coffee quality and thus what Starbucks proclaims as high quality may be viewed as a normal good in some economies. In such cases, premium pricing is not suited in these environments because there is a weak price-quality relationship. Marketing surveys have also shown that many consumers found that the premium roast coffee offered at McDonald’s (which is relatively cheaper) is even better in quality as compared to Starbucks’. Thus Starbucks should continually strive to yield higher quality brews that customers would perceive to be better relative to its competitors; otherwise, its main business – coffee, would fail. This could be implemented by selecting more premium grade suppliers to justify the price at which it is sold and also to ensure quality control in the grinding and brewing process which could be made transparent to the customers so that they would know what they are paying for. 2. 3 Ineffective Product Launch Ultimately, the inherent nature of the product and factors surrounding its launch would have an impact on whether they would be embraced by the consumers. These factors would include the timing of the launch, the profitability of the product and also the support rendered in the launch of the product in the market. 2. 3. 1 Wrong Timing More often than not, managers would push for constant introduction of new products into the market so as to boost sales as this would reflect well on their performance should they be appraised based on this indicator. Hence, high level executive push of products can be viewed as the main impetus for the launch of products. However, the timing of the launch of products is crucial in determining whether it can capture a sustainable market share at that point in time. If managers are driven more by profit, they may neglect the marketing aspects of the launch of the product and fail to anticipate the moves of its competitors and also neglect the market environment. Introducing a product at a bad time would jeopardise the success of the product as it may coincide with the launch of a popular product by another competitor or an adverse environment. A slate of new products introduced may also undermine their effectiveness as a whole to capture market share. These new products may undercut the integrity of the Starbucks brand for coffee purists. There is also a challenge for the baristas who have to wrestle with an increasingly complex myriad of products offered on the menu. The baristas would also not have time to interact with the customers when they spend time customizing the drinks for the customers; this would conflict with their brand experience since the baristas are hired for their social skills. Besides, waiting time would have increased, further diminishing the effectiveness of the new products introduced. Therefore, the launch of the new products should be timed with more consideration given to the suggestions provided by the marketing department rather than management who may be more concerned about the financial figures. The launch of products should also be paced alongside an implementation timeline so that there would be a greater overall impact brought about by each individual product and their success can be singled out and evaluated more effectively. . 3. 2 Unprofitable Product Another due concern for a product failing can be the profitability of the product itself. The development of un-complementary products that do not fit into the current basket of offerings may fail to bring about the desired sales as the customers may not be accustomed to buying an unrelated product. Using simple economics, complementary products have a higher cross elasticity of demand and th us sales of one related product will bring about the sales of another more effectively. On the other hand, an un-complementary product would be much harder to appeal to the customer to buy as it is viewed as an isolated and new product on its own. It is unable to capitalise and ride on the sales of current products; hence the likelihood of its failure would be higher. Starbucks should avoid venturing into unrelated products under an umbrella branding strategy as consumers may not be able to relate the brand name to the product. Instead, it can practise multiple branding to launch a new un-complementary product. A product can also be unprofitable due to self-cannibalisation, which is defined as the reduction in sales volume, sales revenue or market share of one product as a result of the introduction of a new product by the same producer. The new product may seem successful since it may generate its projected demand but effectively, from the stand of the whole organization, it could be a failed product as it merely captures the market share of another product. For the company, there is no increase in aggregate market share for all of its products. However, Starbucks can turn the situation into its own advantage by selling similar products with different branding. In this manner, customers would be induced to look at the same product twice in different guises. This would serve as a reinforcing advertising strategy and may increase market share since consumers have an alternative to choose from (other than the current product offering) due to their perceived differences in the products. Another reason which can give rise to an unprofitable product would be an error in estimates of the costs needed to produce it. The cost model adopted in deliberating the price setting may not have comprehensively incorporated the factors and risks that the organization may face. Such risks include commodity price risks and operational risks. Though Starbucks hedges against commodity prices, the hedge might not be effective. The risk responses to operations outage may also be unresponsive or ineffective too. Thus when such risks materialise as events, higher costs relating to the product may be incurred by the corporation which would decrease margins and result in losses incurred. Henceforth, Starbucks can consider the proposal for a formal risk management team or committee which would implement the enterprise risk management system to manage its risks more comprehensively. 2. 3. 3 Inadequate Support Advertising and marketing are crucial avenues to launch a product and bring it to the masses. However, when there is insufficient publicity due to a small budget allocated by management, the product may not be able to reach out to all its intended targets and thus demand may not be as optimistic as projected. In such a scenario, the management should always decide on the best method of advertising to the consumers and then subsequently allocate a reasonable sum of money for that purpose. The allocation can be based upon launches of previous comparable products for a better estimate. However, with the proliferation of the mass media and the burgeoning use of the Internet and social media platforms, viral marketing can easily achieve the objective of increasing awareness at a lower cost without jeopardizing the success of the product due to insufficient advertising and marketing support. This will however depend on whether the target groups are technology-savvy users of social media. Starbucks should also consider the need for a communications officer to handle this aspect of the organization as the media is a double edged sword any product disgruntles can permeate through the online community virally too. The officer would need to be trained as a spokesperson for the company to monitor and respond to feedback provided from the online social community. The channel of distribution should also be aptly chosen so that it would facilitate the launch of the products. Starbucks previously had Kraft as a distributor and advertiser for its products. This was a strategic alliance in which Starbucks could also leverage on Kraft’s name to sell its products on the market. However, if the channel of distribution was improper, it would tarnish Starbucks’ products and also its reputation. To add on, the choice of distribution also plays a pivotal role in determining the effectiveness of the product launch. Though retailing products through supermarkets and grocery stores may reach out to more consumers, it may also portray the image of a normal commodity good. Conversely, distributing through exclusive boutiques may render the product of higher standing but may not create much awareness in the market. Therefore, there is an imperative to strike a balance and make an optimum choice in the selection of channel of distribution. More importantly, the positioning strategy is one of the most crucial factors in ensuring a smooth product launch. Positioning is the process whereby marketers try to create an image or identity in the minds of their target market. There can be positioning by product attributes and benefits, price or quality, use or application, product class, product user, competitor or cultural symbols. Without a strong positioning strategy, customers would not be able to distinguish the product from the myriad of other products out there; the required strong product impression needed for repeated sales would be absent and an unsustained market share may justify the failure of the product. Hence, the marketing department should delineate a clear and strong positioning strategy so that the product can be more easily identified with and be well received by consumers. Figure 2 3. SWOT Analysis Strengths * Wide range of products sold through numerous locations * Strong Brand Equity * Excellent RD Capabilities * Relationships with established players * The Starbucks Experience| Weaknesses * Criticisms and controversies dilute the brand * Lack of iversification * Product recalls affect margins and brand image| Opportunities * Growth through acquisitions and partnerships * Introduction of ‘VIA Coffee Essence’ in Japan and China * Expansion in China and entrance into India| Threats * Rising prices of rawIngredients * Increasing health consciousness of consumers * Increasingly stiff competition| 3. 1 Strengths 3. 1. Wide range of products sold through numerous locations Starbucks offers a wide variety of coffee and non-coffee flavoured drinks, a broad selection of ice-shaken beverages and premium teas, and distinctively packaged roasted whole coffee beans in both US and international markets. It also sells a selection of fresh food items such as cakes, scones and muffins; with such selections focusing on the use of high quality ingredients with high nutritional value and great taste. Starbucks currently operates more than 17,000 stores in over 50 countries worldwide. Such an extensive product offering allows it to cater to the different tastes and preferences of consumers worldwide. 3. 1. 2 Strong Brand Equity Since the opening of its first store in Seattle in 1971, Starbucks has built up for itself a strong brand name with people associating the brand ‘Starbucks’ as a premium seller of speciality coffee. Moreover, Starbucks has had partnerships and licensing agreements with other big brand names like Kraft, and this helped strengthen its brand further. The company came in 85th amongst the 100 Top Brands in 2008 by Business Week. Due to its premium brand, Starbucks enjoys a high degree of customer loyalty and thus has a significant competitive advantage over lesser known coffee brands. 3. 1. 3 Excellent Research and Development capabilities Starbucks is known for its premium quality of brewed coffee. The secret behind this excellent tasting coffee lies in its Research and Development (RD) department. The company invests a lot of money in developing new tastes and flavours to ensure it stays relevant and keeps up with its competitors. For instance, in 2009, the company launched Starbucks VIA ready brew coffee to tap into the US$21 billion global instant coffee category market. Starbucks VIA is made using a patented micro grind technology to preserve the coffee’s taste, quality and freshness. Starbucks’ investment in RD is evident in the amounts they spent US$9 million, US$9 million and US$7 million during FY 2010, 2009 and 2008 respectively. 3. 1. 4 Relationships with established players Starbucks had a partnership with Kraft Foods, the biggest confectionery, food and beverage corporation in the US from 1998 to early 2011. Through licensing agreements with Kraft, it sold its ready to drink packaged coffee and beverages in supermarkets throughout the US. Kraft managed all distribution, advertising, marketing and promotion of Starbucks’ products. Though the partnership fell through, there is an inherent strength in such alliances and Starbucks employs this strategy not just in the US, but internationally too. For example, it has entered into an agreement with Arla Foods for the manufacture, distribution and marketing of Starbucks-branded premium ready-to-drink coffee beverages in Europe. Through these licensing arrangements, Starbucks reaches out to a wider customer base as its products are prominently featured in supermarkets, a place with high daily customer volume. 3. 1. 5 The Starbucks Experience What makes Starbucks stand out from its other competitors like McDonald’s and Dunkin Donuts is its in-store ambience. The layout and atmosphere of Starbucks stores is specifically designed to be cosy and intimate, while at the same time providing people with their own personal space to use as they wish. Plush sofas, coffee tables and chairs, and additional perks such as free Wi-Fi in its cafes lure a steady stream of customers to its cafes where they enjoy the famous ‘Starbucks Experience’. 3. 2 Weaknesses 3. 2. 1 Criticism and controversies dilute brand value Starbucks has been involved in several lawsuits. One was filed by a former employee in 2004, alleging that the company violated the California Labour Code by allowing shift supervisors to receive tips. In March 2008, Starbucks was ordered to repay California baristas more than US$100 million. Starbucks was forced to repay tips, with interest, that the company had handed over to shift supervisors. Similar suits have been filed in Minnesota and Massachusetts. Also in 2008, Starbucks was lambasted by environmentalists who accused them of wasting more than 23 million litres of water a day for leaving taps running to ‘prevent germs from breeding in taps’. In February 2009, another lawsuit was filed against the company by an employee for laptop data breach. In connection with this lawsuit, Starbucks offered its employees one year of free credit monitoring and protection for its lapse in security. Incidents like these dampen consumer trust and can significantly erode Starbuckss brand value. 3. 2. 2 Lack of Diversification With just 12% of its operating income for 2010 derived from the International segment (as opposed to 73% for its US Segment), Starbucks could be too heavily reliant on the US market for its profitability. Its current 6,000 stores outside the US are almost half that of the total stores it operates in the US. It should seek to expand internationally in order to diversify and not be overly dependent on one segment alone. 3. 2. Product recalls affect margins and brand image In recent years, the company has recalled several of its products. Thousands of its coffee blade grinders were recalled in 2009 as they could fail to turn off or could turn on unexpectedly, thus posing a laceration hazard to customers. In addition, the company also announced a voluntary recall of 12,000 glass bottles due to the risk of lacerations that consumers were subjected to. Furthermore, a few of its products containing peanut butter were recalled from its stores after an outbreak of Salmonella in the US. Products recalls such as these will hurt its brand and could possibly lead to lower consumer trust in them and hence a decline in the demand for its products. 3. 3 Opportunities 3. 3. 1 Growth through acquisitions and partnerships Starbucks has recently been in talks to acquire ‘Peet’s Coffee and Tea’ in an attempt to expand its business further. The potential benefits of such an acquisition are numerous – from increased market share to strengthened brand equity. If the acquisition is successful this year, it will enable Starbucks to capture an even larger share of the coffee market in the US. Also, the company has been wanting to partner ‘Green Mountain Coffee Roasters’ in an attempt to break into the single-cup coffee sector in the United States, which is currently 80 percent dominated by Green Mountain. A successful partnership will lead to added opportunities for Starbucks to develop its brand further. 3. 3. 2 Introduction of Starbucks VIA coffee essence in Japan and China Following the company’s successful launch of VIA ready brew in the US, UK and Canadian markets in 2009, Starbucks launched VIA coffee essence in Japan in 2010, its first premium coffee stick product in Japan, where 63% of total coffee sold is instant. Starbucks will sell its VIA coffee packets through their 870 retail stores in the country, and eventually expand its reach through grocery stores and other distribution channels. More importantly, Japan possesses huge potential to be a large market, as the at-home market coffee in Japan is worth $5 billion, almost a fifth of the global instant and single coffee market that is worth some US$23 billion. On April 6th 2011, the VIA Ready brew arrived in China and the company hopes to replicate the similar success it enjoyed in several other countries where it had already launched the product. Starbucks VIA Ready Brew has already scooped several accolades for being the ‘most innovative’ and best ‘new product’ of the year and these awards further cement Starbucks VIA Ready Brew as a leader in the instant coffee market. 3. 3. 3 Rapid expansion in China and entrance into a new market – India Starbucks is recognised as one of the top 20 brands in China and its stores have outperformed its US stores in terms of average store profitability. The company has announced plans to expand rapidly in China – it aims to triple the number of stores it has in China to 1,500 by 2015. In fact, Starbucks has discovered an area within the Yunnan province which they believe can produce excellent coffee. They believe that growing coffee in a country that is strongly nationalistic will create a significant differentiating factor in the land of China. The massive potential of China has even led CEO Howard Schultz to proclaim that â€Å"China will be the second largest market in the world for Starbucks after North America†. In 2011, Starbucks announced plans to enter India through a strategic alliance with ‘Tata Coffee’, India’s largest coffee producer and exporter. It has been reported that Tata Coffee and Starbucks would soon convert their alliance for sourcing and roasting premium coffee beans in India into a joint venture, in which Starbucks would hold a 26% stake. Subsequently, Starbucks hopes to open outlets in all major Indian cities, and would aim to increase its stake in the new company to 51% within a year. CEO Howard Schultz acknowledges that â€Å"India is one of the most dynamic markets in the world with a diverse culture and tremendous potential†¦Ã¢â‚¬  and is thus exploring the idea of setting up shop in India. Given that China and India are the world’s most populous nations, the potential market for coffee in these two markets is immense. Starbucks will certainly be able to reap the benefits of its expansion in these two nations should their business model work out well. 3. 4 Threats 3. 4. 1 Rising prices of raw ingredients The rising prices of Starbucks’ main raw ingredients – coffee and sugar will continue to hurt its margins. According to data compiled by the International Coffee Organization, average coffee prices have risen by 54% since the beginning of 2010. Sugar prices also continue to rise steadily and this will have a negative impact on the company’s margins. However, Starbucks tries to mitigate rising costs of ingredients by hedging coffee, dairy and sugar prices to mitigate spot price volatility during the year. 3. 4. 2 Increasing health consciousness among Americans could affect demand The bulk of Starbucks’ products contain caffeine, dairy products and sugar, the health effects of which are the subject of increasing public scrutiny. It is a known fact that excessive consumption of caffeine and sugar can translate into a variety of adverse health related problems. Over recent years, health organisations in the US have been stepping up in their efforts in curbing obesity by promoting a healthier lifestyle in terms of healthier choices of food and drink and the encouragement of more exercise. Increasing health consciousness of American consumers will inevitably reduce the demand for Starbucks’ heavy-laden caffeine and sugar products. This has the greatest impact on their revenue as the US accounts for the largest portion of its market. Globally, consumers are becoming more health conscious too, with Singapore offering popular drinks like bubble tea in different sugar evels. Starbucks might have to resort to adapting to the needs of locals and provide varying sugar levels for their drinks in order to cater to the increasing group of health-conscious Singaporeans. 3. 4. 3 Increasingly stiff competition from other giants like McDonalds and Dunkin Donuts Starbucks has numerous competitors, and major rivals include McDonalds who has, in recent years come up with the McCafe coffee-house-style food and beverage chain, offering similar coffee and food products as Starbucks. Dunkin Donuts is another major competitor that offer similar food and beverage choices at lower prices than Starbucks and stiff competition between these few big-name brands in the US could lead to reduced demand for Starbucks’ products and hence lower profits. 4. Emerging/Current Trends Despite its reputation, Starbucks constantly faces new challenges on the way to meeting its strategic objective: â€Å"to maintain Starbucks standing as one of the most recognized and respected brands in the world†. There are three current issues that may have large impacts on the future growth of Starbucks, namely (1) health-conscious customers, (2) brand inconsistency and (3) strategic alliance with Green Mountain Coffee Roasters. 4. 1 Health-conscious customers Affordable, delicious and healthy food is increasingly demanded around the world. Starbucks’ customers are not an exception to that trend. The Company reported that its customers expect â€Å"better tasting and healthier food options† on the Starbucks’ coffee and non-coffee menus. Starbucks quickly responded to the customers’ needs by introducing a variety of healthy foods in its new menu. Apart from its well-known healthy Skinny Lattes, Starbucks revolutionized the concept of healthy snacking by integrating nutritious and natural ingredients like whole grains and fruits into its bakery products such as the Blueberry Oat Bar and Banana Walnut Bread. The Company also took initiative to reduce preservatives, artificial dyes and flavours and high-fructose corn syrup which link to 90% of its baked products. Moreover, it also currently offers new healthy food options such as Farmer’s Market Salad with almonds, cranberries and sweet apples and Strawberry Banana Vivannoâ„ ¢ Smoothie with pure strawberries. The business strategy of leveraging on complementary products is not new in the industry. It seems that Starbucks has so far tapped well into its complementary food market segment through innovations in its product offerings. 4. 2 Brand erosion due to changes in pricing and new product offerings Starbucks is famous for its authentic brewed coffee and excellent services which allow the Company to charge a premium over its customers. As its business expands, new items such as food and other non-coffee beverages have been added into the Starbucks menu. This deviates from what a traditional coffee house would offer. Recently, Starbucks introduced â€Å"Pike Place Brew†- a US$1. 50 cup of regular coffee which is a contrast to a standard $4 cup of premium coffee. Moreover, to boost the stores’ traffic, the Company also offers USA Today and free pastries to customers who purchase brewed beverages at selected stores. These offerings may be justifiable as the Company has recorded a continuous fall in customers’ visits over the past years. However, using low-pricing as a marketing strategy is dangerous for Starbucks’ image as a premium coffee house. A significant drop in pricing is the fastest way to commoditise a product and Starbucks would face an extremely tough time in increasing the price or removing the low-price products from its menu in future. As the company lives on its innovation and high quality products, offering low-price products would hamper its differentiation strategies and destroy the unique customer experience that it promises to deliver. In 2009, Starbucks launched Starbucks VIA ® Ready Brew which is an instant coffee product with a variety of flavours. While this new line of products may contribute to Starbucks’ growing Consumer Product Group segment (CPG), it could also potentially make authentic coffee lovers desert Starbucks’ stores as sugary and milky flavours like Vanilla and Caramel are inconsistent with espresso Italian-style coffee. 4. 3 Strategic alliance with Green Mountain Coffee Roasters Starbucks Corporation and Kraft Foods Inc. Kraft Foods) had been in a strategic partnership since 1998 which allowed Starbucks’ consumer products to be distributed through Kraft Foods’ channels. Nonetheless, the alliance turned bad over time and led to a litigation war in 2011 where Kraft Foods lost its distribution right of Starbucks coffee to grocery stores. In March 2011, the Company established a new partnership with Green Mountain Coffee Roasters (Green Mountain) in which the new partne r would increase sales of its Keurig machines used to brew Starbucks coffee packaged in its K-Cups coffee packets. While Green Mountain’s competency in packaged food distribution can be comparable with Kraft Foods’ as they are direct competitors, it may take Starbucks a certain amount of time to devise appropriate deal terms and to develop a strong business relationship with Green Mountain. More importantly, since the deal was not an acquisition, there are concerns over Starbucks’ financial benefits from the deal and the commitment of Green Mountain. First, it is unclear if the cost of the coffee cups made from Starbucks’ coffee packs with Keurig machines would be less than the cost of the cups at the walk-in stores. Furthermore, the consumption of complementary products like bakery products would decrease as customers no longer need to go to Starbucks’ stores to get a Starbucks cup of coffee along with other foods. Second, since Green Mountain can leverage on Starbucks’ reputation, its sales of the brewing machines would increase. As these machines are not exclusively designed for Starbucks coffee, Green Mountain may receive attractive deals from other coffee retailers. This would reduce Starbucks’ bargaining power in future deals with Green Mountain and thus would lower the company’s profit margins. 4. Implication for strategic objectives and strategy formulation: To maintain Starbucks as â€Å"one of the most recognized and respected brands†, the Company definitely has to take the described trends and events into consideration in formulating its strategies. The followings are some implications: Providing â€Å"a healthier Starbucks Experience† has been Starbucks’ signature for more than twenty years. As non-beverage sales become a significant component of revenue, Starbucks may have to rethink about the significance of this segment as beyond merely complementary products to its coffee and beverage lines. Natural and nutrition-rich ingredient supplies have to be guaranteed to avoid disruption in its food business and mitigate risk of rising commodity prices. To further enhance the quality and healthiness of its food menu, the Company should source for reliable ingredient suppliers at the lowest cost and have in place rigorous quality control practices to monitor the nutritional value of the food. As the food market becomes more significant, the Company should invest more in positioning its healthy food as a strong connection to the Starbucks Experience motto through marketing and R;D in food processing. Although the Starbucks wants to refresh its customer experience through â€Å"transformations†, a low-price strategy should not be a regular practice to preserve the Company’s premium brand. Starbucks may also explore a multi-branding strategy for sweet and milky coffee drinks by creating a new brand for this beverage line to mitigate confusion with the espresso style of its coffee. Furthermore, the Starbucks may consider developing a new concept for these drinks as opposed to the traditional one in order to emphasise on its diversity in product offerings. Starbucks’ brand equity should be fiercely protected by ensuring the consistency of its strategies with its brand image. Finally, Starbucks should prudently structure the deal terms with Green Mountain to maintain a reasonable level of profit margin based on its financial benefits from the deal. To keep Green Mountain committed to the deal, Starbucks may want to include a non competitive agreement which prevents Green Mountain from packing and distributing its own coffee and a restrictive clause which limits the number of deals from other coffee retailers Green Mountain can have. Apart from balancing the costs between packed coffee and in-store brewed coffee, the Company should create marketing campaigns where it reminds customers of its complementary products. 5. Risk prioritization for Starbucks Risks| Category| Likelihood*| Severity*| Score| Rank| Risk of losing market share due to stiff competition| Strategic| 5| 5| 25| 1| Commodity price risk| Financial| 5| 4| 20| 2| Currency risk| Financial| 5| 3| 15| 3| Supply chain disruption risk| Operational| 3| 5| 15| 4| Risk of changes in consumer preference | Strategic| 3| 4| 12| 5| Risk of failure and breach of security of IT systems | Operational| 2| 5| 10| 6| Product liability risk| Operational| 4| 2| 8| 7| Risk of Non-Compliance with Laws and Regulations| Operational| 2| 3| 6| 8| Risk of loss of key personnel| Operational| 1| 6| 6| 9| Natural hazard risk| Hazard| 1| 3| 3| 10| * Scores range from 1 to 6, with 1 as least likely/severe and 6 as most likely/severe. 5. 1 Risk of LOSING MARKET share due to stiff competition Starbucks experiences direct competition from large multi-national competitors in the quick-service restaurant sector and specialty coffee shops. Other than that, the company’s coffee beans, beverages and Starbucks VIA Ready Brew also face competition from well-established companies in the US ready-to-drink coffee beverage market. For instance, McDonald’s was voted to have the best coffee by Consumer Reports. The finding might come across as surprising since coffee is Starbucks’s main specialty. This would thus threaten the company’s market position since fast food restaurants are now capable of producing better coffees. All these fierce competition would easily erode the competitiveness of Starbucks. However, consumers’ choice of specialty coffee retailers depend on many factors such as quality, service, convenience, price and brand loyalty. With strong marketing and word-of-mouth, Starbucks would most likely retain its foothold in the specialty market in the near future. In addition, the company consistently conducts reviews to ensure positive consumer experience and have strong corporate social responsibility programs. The Starbucks brand has been highly rated in several global brand value studies. Diversification to capture related markets such as venturing into the instant coffee market was one approach the company has adopted in recent years. Hence a rating of likelihood 5 and severity 5 was assigned. 5. 2 Commodity price risk Starbucks purchases commodities such as coffee beans, dairy products and diesel for the company’s operations. Such commodities are highly subjected to price fluctuations due to predominantly supply forces. These price risks would substantially increase the expenses of the company and might in turn negatively impact Starbucks’s financial results. However, Starbucks engages in hedging using financial derivatives such as coffee futures to reduce the impact of such risks. Hence, likelihood of commodity price risk was assessed to be 5 and its severity as 4. 5. 3 Currency risk Although the majority of Starbucks’ revenue, expense and purchases are transacted in US dollars, a significant portion of Starbucks’s operations are also outside the US. As a result, the company faces currency risk from mainly the Canadian dollar, British pound, Euro, and Japanese yen. To reduce the company’s exposure on foreign exchange risk, Starbucks hedged its revenues, inventory purchases, assets, and liabilities denominated in foreign currencies. Thus likelihood of the currency risk bears a rating of 5. Severity was assessed at 3 since a weakening dollar would greatly impact earnings; there have been a few monetary policies put in place by the US Central bank in recent years which are causing the weakening dollar. However, due to Starbucks’ presence in many countries worldwide, any fluctuations in one currency will naturally be offset by the strengthening of another. Thus its impact would not be too severe. 5. 4 Supply chain disruption risk Starbucks faces high likelihood of supply chain risk which is beyond the company’s control. For instance, there could be unexpected disruptions with regards to the company’s roasting plants or interruptions in service by shipping carriers within the company’s distribution channels. There is also the likelihood of trade restrictions such as increased tariffs or quotas, embargoes or customs restrictions. These events will significantly impact the production or distribution process and in turn, cause Starbucks to be unable to meet consumer demands. At the same time, fair trade issues have led to much displeasure amongst the activists in the recent years and their actions might threaten the company’s supply of coffee beans. Due to the nature of the supply chain which could face various forms of disruptions, we assign a likelihood of 3. A severity rating of 5 was given since it will affect Starbucks’ key operations and have significant impact on the company’s financials. 5. 5 Risk of changing consumer preference As aforementioned, there is the risk of changing consumers’ preference, especially in the specialty coffee market where consumer choices rely on many factors. Health concerns would be one apparent area that would impact Starbucks in the upcoming few years. Most of the company’s products contain caffeine, dairy products or other active compounds, which are increasingly coming under public scrutiny as there are adverse impacts resulting from large consumption. Also, other reasons such as obesity, as well as increased consumer litigation based on alleged negative health impacts of various food products are posing a problem to Starbucks and its coffee industry. Consumers might switch to other alternatives such as vitamin drinks, which would slowly reduce the demand for Starbucks’s products. However, Starbucks do take the changes in trend seriously and constantly try to change their products to suit consumers’ taste. Some measures have already been introduced with the health conscious consumer in mind such as allowing the substitution of milk in their drinks with soymilk. A likelihood of 3 and severity of 4 was thus assigned. 5. 6 Risk of failure and breach of security of IT systems There is a great amount of reliance on information technology in Starbucks’s operations for supply chain, in-store point-of-sale processing, Starbucks cards, online business and various other processes and transactions. The ability to effectively manage the company’s business and coordinate the production, distribution and sale of products depends significantly on the reliability and capacity of these systems. This is especially more so since Starbucks operates on a global basis. Any failure or security breach in the system could cause delays in product sales and reduce the efficiency of the company’s operations. In addition, capital investments might be required to remediate the problem. Thus, a likelihood of 2 was assigned, with a severity of 5 since systems are essential to Starbucks’s core processes and any failure will affect a significant number of outlets and all the operations. 5. 7 Product liability In recent years, Starbucks has recalled few of its products. For instance in 2009, the Consumer Product Safety Commission ordered a recall of thousands of Starbucks coffee blade grinders and glass water bottles, which allegedly posed a laceration hazard to consumers. Another incident was Starbucks’s recall of a few products containing peanut butter from its stores following an outbreak of salmonella in the US. Product recalls would generally hurt the value of the corporate brand and thus might reduce the demand for its products. Starbucks operates in the food and beverage industry, such product recalls are common and a likelihood rating of 4 was assigned. A severity rating of 2 was assigned as Starbucks has prompt voluntary recall responses as evident in the incidents mentioned above. It will thus keep the severity low as damage was kept under control. . 8 Risk of Non-Compliance with Laws and Regulations  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   There are strict compliances with regard to applicable laws, accounting and reporting requirements, regulations and tax requirements, including those imposed by the listing exchanges and labour laws for St arbucks to adhere to in the countries that it operates in. Any breach of regulations might result in penalties that might harm Starbucks financially. In addition, there might also be damage to the company’s reputation especially if the company incur civil and criminal liability. Compliance fees pertaining to labour law was an example that affected Starbucks. The minimum wage rate in US had remained $5. 15 per hour since 1997 but rose to $7. 25 an hour from July 2009. Starbucks employed about 142,000 people in the US as of 2009 year end and this increment in labour costs could increase overall costs and affect the companys operating margins when complied with. However, regulatory changes generally happen gradually and with warnings. Starbucks should have risk response plans in place by the time regulations take effect. Hence, a rating of 2 for likelihood and severity of 3 was given. 5. 9 Risk of loss of key personnel Starbucks’ future success depends on the continued service of senior management personnel and any loss of key executive management personnel can harm the company’s business. For example, Howard Schultz, one of the early founders of Starbucks left and was invited back to be the CEO when the company faced some problems in 2008. This shows how important key personnel are to the growth and survival of a company. As such, Starbucks need to ontinue recruiting, retaining and incentivising key management personnel to maintain and carry out operational initiatives, some of which involve ongoing expansion in business channels outside of the company’s traditional company-operated store model. Because of the continuous training and the incentive measures the company has put in place, the likelihood of key personnel leaving bears a rating of 1 but the severity is rated at 6 giv en the necessity of maintaining the talent pool at Starbucks for its continued success. 5. 10 natural hazard risk With close to 17,000 stores currently, Starbucks has coffee outlets in more than 50 countries. Natural disasters are inevitable and black swan events might impact the operations and financials of the company. For instance, in the recent 2011 earthquake in Japan, 50 stores in Japan were destroyed. However, a severity of 3 was assigned on the overall impact of this risk since a disaster would cause a significant amount of disruptions to outlets but only in affected regions; whereas its other outlets across the world would most likely be unaffected. Thus the strain on Starbucks’ financials would not be too severe. Also, a likelihood of 1 was assigned since natural disasters are not expected to happen on a regular basis. 5. 11 Risk Map Severity| High| 6| Risk of Loss of Key Personnel| | | | | | | | 5| | Risk of failure and breach of security of IT systems| Supply chain disruption risk| | Risk of loss of market share due to competition| | | Medium| 4| | | Risk of changing consumer preference| | Commodity price risk| | | | 3| Natural hazard risk| Risk of Non-Compliance with Laws and Regulations| Currency risk| | | | | Low| 2| | | | Product liability risk| | | | | 1| | | | | | | | | 1| 2| 3| 4| 5| 6| | | Low| Medium| High| Likelihood| Legend| Risk response| | Risk avoidance / elimination| | Risk reduction/ prevention| | Risk transfer / sharing| | Risk acceptance| 6. Risk Responses and control devices/activities Operational Risk | Risk Map | Risk Response | Control Activities | Loss of key personnel * Risk of inability to recruit, retain and motivate senior management personnel sufficiently to main tain and expand current operations | Likelihood: 1 Severity: 6 Appropriate risk response: Prevent /reduce | To reduce severity: * Cross functional management (possibly achieved through job rotation) * Ie. Someone should be able to replace Howard Schultz as the current main force behind Starbucks * Management trainees of Starbucks have training covering all aspects of store operations including baristas’ job scopes, not to be cross functional, but rather to have a better understanding of the company’s operations. Besides store operations, the management trainees ought to rotate within other functions such as logistics and finance. * Top level performance appraisal of cross functional abilities of senior management personnel and ensure periodic function / international rotation is carried out among senior management * Annual international meetings for senior management personnel to ensure all are aware and updated of the latest activities and concerns of the company through discussions | | | To prevent / decrease likelihood: * To attract: Competitive compensation benchmarked to market rates * To recruit: Stock options granted with vesting periods and longer period employme nt contractual agreements with heavy penalties for walking away early * To motivate: Clear career prospects with high potential for future development made known to employees and awards for employees with best performance at store and company levels | * Compensation committee to propose and enforce competitive compensations plans with favourable terms and conditions to retain and attract talent * Human Resource Department Head to ensure maintenance of clear career progression within the company and conducting of regular employee job satisfaction surveys * Clear career progression can include communicating Key Performance Indicators (KPIs) as progression criteria to employees as well as how they are monitored * Performance indicators to pinpoint departments with greatest resignation rate / staff shortage to better narrow down employee problem areas | Compliance with laws and regulations * Risk of failure to abide with all applicable laws and regulations of the countries the company operates in | Likelihood: 2 Severity: 3 Appropriate risk response: Transfer /share | To transfer/share risk: * Outsource compliance to external professionals – contractual transfer of risk control * Consider Joint Ventures (JVs) or partnerships with local companies when entering a new market (country) as they are more familiar with their home regulatory environment – contractual transfer of risk control | * Outsourcing mandates a need for continuous monitoring of quality of services received which will determine if company outsourced to should be changed * Top level reviews of cost benefit analysis of JVs and partnerships as well as rigorous screening of potential company candidates * Currently, Starbucks claim to be very â€Å"picky† about their international company partners | | | (Possible consideration) To prevent / decrease li kelihood: * Ensure compliance and legal personnel are competent with updated knowledge of operating countries’ regulatory environment | * Top level reviews of competency of compliance and legal personnel * Management to oversee compliance and legal personnel work closely with risk officers and internal audits to build effective intern

Avid Essay Essays

Avid Essay Essays Avid Essay Paper Avid Essay Paper Katerin Leal Period 6th AVID Are Students Risking Their Futures? In Christine Baron’s essay, Apathetic Students Risk Their Futures, is stated that students aren’t taking advantage of the opportunities they have by going to school because they are making up excuses and are better off socializing with others. I agree with Christine Baron, some students have become lazy for their school work. However, not all students are being lazy and not doing their work, there are some students that actually care and want to succeed in life therefore they are the ones that are being motivated and have been doing the assignments and homework that the teachers have asked them. But how do we get the other students to be do their work as well? High school is a big change to most students. While some are working after school others are playing sports, and other even have responsibilities at their home. However, that doesn’t give students an excuse to not do the work that has been assigned to them. â€Å"I had to work until 11 p. m. both nights†, â€Å"I had baseball practice†, â€Å"I was absent again the day you assigned this†, this are some of the excuses that students use when Christine Baron asked her students if had read the reading assignment that was assigned to her class. Sure working until 11 p. m. at night is tiring but students should learn how to manage their time, school should be their number one priority. Also, just because you’re absent from school doesn’t mean that your excused from the assignments that you missed, it’s your responsibility to email your teacher and/or ask your teacher what you missed when you come back to school the next day. In Barons case what had frustrated her was that her students choose â€Å"to give up on homework that’s the least bit challenging†. Other factors that have gotten in the way with students schoolwork is the social network. Student with their cellphones, laptops, iPods, etc. are choosing to socialize rather than actually take advantage of their spare time. I started reading it, but the phone rang†, was one of the other excuses given to Baron. These students are in high school already and its time that they take some responsibility and think about the opportunities they have by going to school. Instead of making up excuses students should just do the work. The challenge that has been presented to some teach ers is â€Å"How can we encourage a lot more kids to care about their education†. In the essay that Baron wrote he states that parents can help with their kids caring of school. With that being said teachers should get together with the parents of those students who are having a hard time to stay focused on their school work. Parents can be a great influence and a lot of help with getting their kids to do the assignment that is being assigned by the teachers. High school is a big change for students, they run into a lot of pressure sometimes even skipping classes which later on leads to skipping school more often than expected, but what these students need to know is that â€Å"caring about their education will benefit them in ways they might not even imagine†. The one thing that teacher cannot do is â€Å"dumb down† the curriculum, because in the end the students aren’t receiving any challenging work. Teacher should push the students on challenging work so they can exceed their expectations. Everyone is capable of succeeding but you have to apply some effort into your work. The students that are caring and doing the work that is being asked by their teachers have a greater chance of becoming the person they really want in life, by working in the job field of their choice, and being financially secured.

Neurotheology Vol I and Vol II Descriptions Essay

Neurotheology Vol I and Vol II Descriptions - Essay Example This includes perspectives from Darwinian evolution and neuroscience (studies in frontal, parietal lobes and temporal lobe epilepsy), neuropsychology, genetics, cognitive science, cellular biology, chemistry, physics, mindfulness, electromagnetic field effects, and varying perspectives from psychology like conditioning, attachment and learning theories. Other perspectives on science and beliefs are developing from neuroeconomics, neuropolitics, and neuroethics. Neurotheology acknowledges the complexity and diversity of human beliefs by providing a broad conceptual framework to encompass beliefs whether mystical or religious, economic or environmental, political or social, or some other. Beginning with an overview of what Neurotheology is and what it attempts to accomplish, the book will illustrate how Neurotheology proposes six belief dimensions, each of which encompasses different disciplines that posit particular understandings of brain (human physiology), mind, and beliefs from their own viewpoints, research commitments and program obligations. Having set the stage for a greater understanding of the science of neurotheology, the second volume in the series will present a more in-depth look at the various belief dimensions that comprise the focus of neurotheological studies. The first of these belief dimensions is the mystical, religious, spiritual and theological traditions and experiences of human existence. The second belief dimension is that of the scientific programs and psychological theories that are often pitted against the ideas of the first as if they were diametrically opposed. Historical and philosophical traditions comprise the third belief dimension. Anthropological influences are considered within the fourth belief dimension while the fifth belief dimension is concerned with technological

Most Effective Promotional Tools to Attract Customers Essay

Most Effective Promotional Tools to Attract Customers - Essay Example The systematic way of communicating marketing function to the target audience in order to influence their behavior towards a product and taking competitive advantage is known as promotion (Koekemoer 2004). The promotional tools are very important in industries where competition is tough and these tools helps the organizations to maintain their market share by increasing the sales volume (Perreault 2000). In leisure industry, it is very important to determine appropriate promotional tool that can help the organization to increase the customer satisfaction and increase its revenue therefore, this paper will evaluate the promotional tools that are most effective for Virgin holidays. Company Profile â€Å"Virgin holidays† is part of virgin group and this leisure company is one of the largest tour operator companies of UK, established since 1985 (Virgin 2012). Apart from USA and Caribbean, it offers holidays to different parts of the world including Middle East, South Africa, Canad a, Australia, Mauritius, and Far East. On average, the company runs 16 marketing campaigns per year in which different promotions are performed in summer, fall, and winter seasons (Virgin 2012). There are also monthly marketing campaigns in which the company, for increasing the overall revenue targets different segments (Virgin 2012). The promotional tools that Virgin Holidays is using to attract customers are Sales promotion, Advertising and Publicity. Research Objective The purpose of this research is to determine the promotional tool that is most effective to attract customers of Virgin Holiday. Research questions Q1. What types of promotional tools are most effective for attracting customers of Virgin Holidays? Q2. What is the importance of determining appropriate promotional tool for leisure industry? Significance of the Proposed Research Work The proposed research work is significantly important for the organizations of UK because this research will enable organizations to und erstand effectiveness of promotional tools in increasing their overall profitability. In this way, organizations will be able to implement appropriate promotional tools in their marketing strategy, which not only help to improve their profits, but increasing consumer loyalty for the product. In addition to the context of UK organizations, there is lack of research work for the effective of promotional tools in leisure industry. Therefore, this research will serve as important studies towards understanding the effectiveness of promotional tools. Scope of the Proposed Study The scope of this research will be limited to exploring the promotional tools used by Virgin Holidays for marketing, and their effectiveness for the company. No other factors will be explored or tested apart from these in the studies and it is important to mention here that the analysis and discussion in light of the proposed research aim will be limited to the skills and ability of the researcher. Structure of the Report This research report is divided into five chapters, which are as follows: Chapter – 01: Introduction The starting chapter of this report will discuss the background related to the topic and problems that are responsible for conducting this research. Apart from this, the chapter presents the aim, objectives and questions that will be addressed in this

Lifespan Development & Personality Term Paper Example | Topics and Well Written Essays - 1000 words

Lifespan Development & Personality - Term Paper Example The paper also throws light on the major psychological theories concerning one’s physical development, cognitive development as well as one’s social, moral and personality development during childhood. The focus of the paper is to pinpoint the major factors that contribute to one’s development in all these fields of development. Both genetic factors and environmental factors influence the physical development as well as the personality and character of a child. The physical appearance such as eye color, hair color and gender of the child has very much to do with the hereditary influences. According to Freud the three parts that make up the personality of an individual are the id, the ego and the super ego. While the id is moved by the principles, the ego is governed by reality principles and the super ego tries to satisfy morality principles. Conflicts occur in the personality of an individual due to the inner struggles among these three factors and these conflicts manifest in the form of dreams, neurotic symptoms or defense mechanisms. For Freud there are five distinctive stages through which a person passes through his childhood and each of these is linked to the physical development of the body. For Freud, it is the libido or sexual urge that dictates terms over one’s behavior and he held that at each stage of the developmental process â€Å"a single body part is particularly sensitive to sexual, erotic stimulation† (Stevenson, 1996) and unless these physical needs at each stage of development are fulfilled the child subjects himself to frustration and fixation and this can adversely affect the development of adult personality too. The five psychosexual developmental stages framed by Freud are the oral stage (birth to 18 months), the anal stage (18 months to three years), the phallic stage (3 years to 6 years), latency period (6 years to onset of puberty), and the genital stage (from puberty on). As the childhood

The Electoral College An Outdated System Politics Essay

The Electoral College An Outdated System Politics Essay Every fourth calendar year the citizens of the United States participate in one of the greatest displays of Democracy in human history, the election of the President and Vice-President of the United States. However, it is not truly democracy. Instead, the democratic election of the President of the United States is tainted by the current use of the Electoral College. The Electoral College system of electing the President and Vice-President of the United States is an outdated system that needs to be replaced with a method that better represents the will of the American people. In the budding days of the United States of America, the Founding Fathers faced a difficult problem, the election process for the President of the United States. There were numerous factors that needed to be taken into account by the Founding Fathers as they debated the optimal election process. The largest factor taken into account by the Founding Fathers was that the nation was comprised of thirteen states which had only recently joined together to create a singular government and were jealously guarding their individual rights and powers, making them apprehensive to any centralized government ideas. The United States also contained four million citizens whom were separated by thousands of miles of land which was scarcely connected by either transportation or communication. Furthermore, the founders believed that political parties were destructive and counter-productive, an idea borrowed from the British (Kimberling 1). After considering these issues and proposing several options, the Founding Fathers developed the Electoral College which can trace its roots to the Catholic Churchs College of Cardinals and the Roman Republics Centurial Assembly (Kimberling 2). The Electoral College as defined by Article Two, Section One of the Constitution, comprises of six points. First, each state is allotted Electors equal to the number of its U.S senators plus the number of its U.S Representatives. Second, the individual State legislatures are allowed discretion in choosing their electors with the constraint that members of Congress and other Federal Servants are prohibited from serving as Electors. Third, States Electors must meet in their States rather than in a national meeting. Fourth, Electors are required to cast two votes for president, one of which had to be from a different state than the Elector. Fifth, the Candidate who obtains an absolute majority of the electoral votes becomes president with the run ner-up becoming Vice-President. Finally, if no Candidate obtains an absolute majority than the U.S. House of Representatives would choose the president from among the top five. In this case, each state would be allotted only one vote. If a tie was reached in the House than the top two would be voted on by the Senate (Kimberling 3). The Electoral College was both elaborate and appropriate at the time that it was created. However, after two hundred years and an amendment, the 12th (1804), the Electoral College has greatly changed. Currently, the election of the President of the United States and the Electoral College functions as follows. The number of each States allotted Electors is equal to the number of States Senators plus the number of the States Representatives. At the beginning of an election, political parties in each State submit a list of individuals whom will act as the States Electors if their candidate wins. Political parties then meet to nominate their presidential and vice presidential candidates, whom are then added to the ballot. On the Tuesday following the first Monday of November, the general populace of each State then votes for the electors representing their presidential and vice-presidential choice. It is a Winner-Take-All System in nearly all States. In a Winner-Take-All System, whicheve r candidate gets the most votes gets all the Electors. The exceptions to the Winner-Take-All System are Kansas and Maine which allot two Electors based on popular vote and the rest to individual Congressional districts. The winning set of electors then goes on to represent the State in the Electoral College. On the Monday following the second Wednesday of December the States Electors meet in their individual capitals and cast their votes for both president and vice president. The Electors still must use at least one of their votes on a candidate from outside their home State. All of the Electoral Votes are then opened by the President of the Senate on January 6th before the houses of Congress. Whichever candidate gains an absolute majority in the Electoral College is declared president. The same is true for the vice-president. If no candidate gets absolute majority for president the top three contenders are voted on in the House of Representatives which each State getting one vote. Similarly, if no vice-presidential candidate gets an absolute majority, the Senate chooses between the top two contenders. Finally, at noon on January 20th, the elected president and vice-president are sworn into office. The Electoral College system is neither fair nor balanced. However, there are many proponents of the Electoral College. They claim that the Electoral College is the only feasible system for fairly electing the president of a nation as large and diverse as the United States. That is not a true statement. Instead, there are is a multitude of alternative ways that the election of the president and vice-president of the United States can occur. The most commonly referred to alternative to the Electoral College is a simple direct majority election in which whoever gained absolute majority in the United States would become president. A simple direct majority vote is greatly beneficial because it better represents the will of the United States as a whole than The Electoral College. Under the Electoral College, the presidency has gone to the candidate with fewer popular votes in one out of every sixteen elections (National Popular Vote). The most noticeable of these cases occurred in the 1824 election between Andrew Jackson and John Q. Adams. Andrew Jackson obtained 60% of the popular vote and yet lost to John Q. Adams whom had gained the necessary electoral votes. Similarly, under the Electoral College, not everyones vote is equal. National Popular Vote gives a fantastic example of this: à ¢Ã¢â€š ¬Ã‚ ¦ Gore won five electoral votes by carrying New Mexico by 365 popular votes in the 2000 presidential election, whereas Bush won five electoral votes by carrying Utah by 312,043 popular votes-an 855-to-1 disparity in the importance of a vote(National Popular Vote). It is clear that a simple direct majority vote is a far better representation of the will of the American people than the currently implemented Electoral College. There are a multitude of problems with implementing a simple direct majority election. Perhaps the greatest of these problems is the increased likelihood and affiliated problems of a candidate not being able to gain the majority vote (over 50%) that would be associated with a direct majority election. There are however many solutions to this potential problem. The most promising of these solutions is Direct Election with Instant Runoff Voting which is presented by Fair Vote. Under an Instant Runoff Voting system, each voter would rank their presidential preferences versus the standard choosing of only one candidate. National Popular Vote is a bill that suggests each State simply