Digitizing Practices and Systems Quality †MyAssignmenthelp.com

Question: Discuss about the Digitizing Practices and Systems Quality. Answer: Introduction: Vertical merger occurs between two companies who are operating at different levels within the supply chain of a particular industry. Mostly it occurs between a supplier and the manufacturer of a particular product within the supply chain management. The few important characteristics of vertical mergers are It occurs between companies that are operating at different level within the same supply chain of any product. It is done in order to increase the synergies of production and the manufacturer can take the entire control of the production of a product from manufacturing to supplying the same. Vertical mergers have their own share of advantages and disadvantages; however they help in having a strategic view to the overall production of the goods. There are various types of vertical mergers like forward integration and backward integration. There are five stages in case of a supply chain of a product: raw material, intermediaries, manufacturing, assembling and distribution(Visinescu, Jones and Sidorova). The vertical merger types moves up and down the supply chain and the people operating in that stages. Forward integration occurs when the company moves forward to get hold of the supply chain and remove all the intermediaries from the supply chain. Backward integration occurs when the manufacturer moves up the supply chain to get hold of the production of the raw materials. These are the two types of vertical mergers. They help in development of synergies that helps in simplifying the overall process of production and makes it easier for the manufacturers and the suppliers to negotiate terms and generate more amount of profit. Vertical mergers are helpful for the public also as removal of intermediaries helps in reduction of the overall cost of the product. Thus it helps in simplifying the overall process of production of the products and makes it easier for different companies to operate together. It helps in elimination of unnecessary middle men that leads to increasing the overall cost of the products these are the few benefits of the vertical mergers that will be discussed in brief in the given case study.(Kohtamki) In the given case study there is a situation where the two top companies belonging to the field of content creation and distribution are joining hands to provide excellent services to the customers. It is a form of vertical merger If reviewed closely it is a winning situation for both the companies. The content creator company will get a valid platform without paying extra to showcase their content and the distributors will have exclusive rights on the same. The combination of the second largest wireless carrier company that is ATT, with the fourth biggest entertainment company that includes Time Warner that is having excellent assets in the form of CNN and HBO, will be extremely beneficial for the audience and the two companies. It will help in creating a massive huge mobile entertainment business, as people are now shifting from normal television to watching content on their smart phones. Both the companies will be benefited from this union(Mayntz). As an acquirer the ATT, will hav e right on the exclusive content that the entertainment company will be producing and can showcase the same through their huge distribution channels. Also the other company will be benefited as the issues that they face with respect to driving the content and getting it on board will now be transferred to the other company. The ATT, will now having control on both the traditional and digital media channels and will earn huge revenue from the subscriptions of channel like HBO and CNN. The distribution channel will have an edge over other same companies as they will have exclusive rights on the content that the entertainment company will be producing. This will help them to develop their brand and make a difference in comparison to other companies. As per reports it is mentioned that it will be one of the most powerful combination of content and distribution that the American country has ever witnessed and will help in the overall growth of the quality content creation and broadcastin g. Thus we can see that if the companies merge then both will have great opportunities. Since they are operating at different levels of the supply chain of the same content creation and distribution it can be termed as vertical merger for the companies(Gartland). The various synergies that the merger will generate will be enjoyed by both the companies and they will have a powerful presence in the already growing industry of content creation and distribution. But there are some issues that the companies need to take care of, in case of the potential merger of the given companies. Few of the potential risks that both the companies might face with respect of the aforesaid merger are The era has changed a lot, and digitization has led to huge use of social media platforms like Facebook and Twitter. These companies are the major market leaders in case of content advertising, e commerce, hardware etc and have been affecting the overall content distribution since then. So it can be rightly said that the future of content on television is going to be defunct soon as more and more people are switching to digitization and are focusing on content on mobiles and social media platforms. Thus the merger between the two competing companies of the media industry will not be as viable as it seem to be(Mayntz). There will not be any net benefit, the revenue and the problems will just get transferred from one pocket to the other. It is rightly said that growth will not happen by combining two challenged business, there may be better services at cheaper rates, more streaming of exclusive content, more bundled services with wireless content and all but there will not be any net g rowth from the same. The problems that the entertainment company was facing with respect to streaming of their content will now be transferred to the distributing company. There will not be any net benefit from the same. Previously the company use to believe that if they are operating in the distribution business, they will not grow if they do not own the content but this myth has now been broke. Companies like Facebook and Twitter are distributing million of contents every second, without actually owning them. The companies are now part of the traditional distribution channel and their huge influence cannot be neglected. Thus if the new merged company wants to have a hold in the market, they need to make effective use of the digital world and the advantages that it has to offer(Elimam). So even if the companies merge they will not be much benefited, they will other issues also with maintain effective strategic approach to the overall scenario and then try to generate the revenue ou t of the same. This is one of the main issues in case of vertical mergers as companies will find it difficult to get hold of the supply chain at reduced cost. The companies wont benefit in the long run if they fail to make an effective switch from the world of television to more advanced and huge world of digital media. They need to make use of the social media management platforms to promote their content. Previously it was believed that content was the king and if the content is good and the audience likes it, the company will flourish. But now the situation has changed along with good content people need to think of effective ways to promote that content, make it more accessible for the people, and have exclusive copyrights on the same. So if an entertainment company is getting merged with a distribution company, there are high chances that there will be no added benefits of the same(Bakir). Moreover the content creation company will lose rights on their content, as the streaming of the same will be regulated by the distribution company. So we see that there are many potential risks that both the companies will face if they get into such kind of mergers that might destroy their presence in the market. Time will only tell whether this will be a viable deal or not, however on close scrutiny it can only be said that the companies need to strategize the overall union if they want to earn any kind of synergy from the said merger of content creation and development and distribution(Belton). References Bakir, c. How do mega-bank merger policy and regulations contribute to financial stability? Evidence from Australia and Canada. Journal of Economic Policy Reform (2017): 1-15. Belton, P. Competitive Strategy: Creating and Sustaining Superior Performance. London: Macat International ltd, 2017. Elimam, H. The Role of Small Businesses (Small Scale Economic Projects) in Alleviating the Acuity of Unemployment. International Business Research 10.3 (2017). Gartland, D.J. The importance of audit planning. Journal Of Accountancy (2017). Kohtamki, M. Real-time Strategy and Business Intelligence: Digitizing Practices and Systems. Finland: Palgrave Macmillan, 2017. Mayntz, R. Networked Governance. Springer, 2017. Visinescu, L, M.C Jones and A Sidorova. Improving Decision Quality: The Role of Business Intelligence. Journal of Computer Information Systems 57.1 (2017): 58-66.

Should Cosmetic Surgery Be Banned Essay Example

Should Cosmetic Surgery Be Banned? Paper Introduction Nowadays, cosmetic surgery has become more popular for modern people. Some people believe that it is a science to improve the beauty of a person. On the other hand, there are some people disagree with it. People said that cosmetic surgery involves risk which may cause serious diseases such as heart attack. Both of the side have their own reasonable reason based on should or should not ban cosmetic surgery. Agree to ban the cosmetic surgery Point 1: Costly * When people decide to undergo cosmetic surgery, they often consult a professional who gives them an estimate as to the cost * The actual cost can rise dramatically over the estimate, leading patients to suffer pressure to pay the entire amount even if they cannot afford it. Point 2: Negative effect of cosmetic surgery * People with a sensitive body are most susceptible and vulnerable to infections from the surgery. * The result of the cosmetic surgery might not turn according to your desires. * Possibility of death cannot be ruled out during plastic surgery. Point 3: Cosmetic surgery made people forgot their originality look * People should not be changing the way they are to be prettier or anything because all they had are come from their parents. * Confucius said that ‘it is first step of piety that body, hair and skin are not allowed to be self-wounded because they were born by parents. We will write a custom essay sample on Should Cosmetic Surgery Be Banned? specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Should Cosmetic Surgery Be Banned? specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Should Cosmetic Surgery Be Banned? specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Point 4: The pretty or handsome appearance does not equal to have the benefit * The Harvard Medical School psychologist ‘Nancy Etcodd says looking good has survival value, and that sensitivity to beauty is a biological adaptation governed by brain circuits shaped by natural selection. * It it not necessary to go under the knife just to look good because there is not only beauty lie in the eye of the beholder. * They believe if they look good that they can get more things in society for no reason. Point 5: The cosmetic surgery was influenced social value. * As we know that, the social value of we learn is everything is fair, no matter what gentle, race, religion, background people. * But if mind set of people was change, everything will break, the social order will down and the value of social changed. * How do you think about the changing of social environment if the social value had changed? Disagree to ban the cosmetic surgery Point 1: Physical benefits * For those with a physical deformity, such as mastectomy patients, children born with a cleft lip and individuals with scarring, cosmetic surgery is helpful. * It also helps people who are not physically deformed, but who have a problem with specific body parts by correcting their perceived flaws and women who suffering after breast cancer surgery * Plastic surgery can also be restorative procedure, where returning the body to its original state after accident, injury or other events Point 2: Psychological benefits * Cosmetic surgery gives patients higher self-esteem. By fixing body issues, patients have greater confidence in themselves. * Patients who like their body have a higher self-confidence. * Social confidence leads a person to make contact with others. * Help gaining confident to those who has physical defect for example: breast cancer patient after having breast removing surgery, they can choose to have a new breast. Point 3: Good looking helps your personal and business relationship Personal: * Give people a better impression when first time meet. * Got the chance to know more friends. * Easier to get help from others. * More people will take the initiative to know about you before you know them Business: * Take the advantages, such as, easier to hit the sales target. * Colleagues are always willing to help you on the thing you don’t know. * Got more opportunity recruit by the company. * Easier to get notice from everyone. Point 4: Freedom to do the cosmetic surgery * If that particular person is happy with it, then he/she can just go with it. * We can’t stop another people’s right to do what he/she wants if he/she doesn’t harm anybody. * Cosmetic surgery doesn’t effect in anyone, only have effect on the person. Conclusion In conclusion, cosmetic surgery can be broken into 2 groups, cosmetic, which is optional, and reconstructive, which is not optional but needed. We believe cosmetic surgery should be banned when optional, but for those who require it to live, it is definitely acceptable. Lastly, we think that people should be content themselves and do not be so hung up on their looks.

Shamanism In Hmong Culture Essays

Shamanism In Hmong Culture Essays Shamanism In Hmong Culture Paper Shamanism In Hmong Culture Paper Essay Topic: Invisible Man Hmongs began to settle in the United States from Southeast Asia in 1975 but still practice many traditions from their homeland today. In many cultures that migrate to new areas, practices are discontinued over time due to Americanization. Although with many younger generations these traditions may be forgotten about, for many elders they are still practiced on a regular basis today. Healthcare providers need to have an understanding of and respect the practices of other cultures. A large percentage of Hmongs are not familiar with biomedical healthcare and do not feel comfortable with health care procedures used in the U. S. In the Hmong culture the believed source of illness can differ from what U. S. healthcare providers feels the source is. Some of the included sources of illness in the Hmong culture can be soul loss, supernatural or spirit, natural causes, magical causes (illness from cast spelled on patient), or the expiration of ones â€Å"life Visa†. The practices used to cure the illness are traditional and differ from the practices used by healthcare providers in the U. S. One of the most common practices used in the Hmong culture today to cure the ill is bring in a shaman for a seance. A shaman is also known to the Hmongs as the master of ecstasy. The shaman can be either male or female and is thought to have the ability to detach is soul from the body during a heeling seance so he can leave for the â€Å"invisible world† and be in equal standings with the spirits. Not only can the shaman disconnect is soul from its body to interact with the spirits, it can also interact by seeing them, talking to them, touching them, and if necessary can catch them and return them home. In the Hmong culture it is believed that illness can occur when the soul is not satisfied with their current owner. When this happens the soul would attempt to incarnate itself to a new location. An example of how this is though to work is given below. â€Å"It is thought that sometimes souls may not be satisfied with their owner and would therefore try to incarnate themselves elsewhere. Say, for example, that I am a hard-working Hmong farmer. My right hand is wrinkled and callous. Because of an accident that happened while I was at work, my hand is hurt. Close to me there lives a young girl that takes great care of herself. She has a very tender and beautiful hand. One day, the soul of my hand cannot stand it any longer, and it falls, as the Hmong would say. By this it must be understood that the soul of the farmers hand escapes in order to reincarnate itself in the girls hand that is so soft. â€Å" When the soul successfully leaves its owner the body is left mutilated and sick which is why a shaman is called in to contact the spirit and heal the body by bringing back the soul potentially by using force. Hmong people typically belong to a specific clan and for each specific clan they have their own shaman which has been chosen by the spirits. The shaman heals the patient by draping the ills face with a black cloth and leaves their body to enter the invisible world. While in the invisible world the shaman may ask for specific animals to be sacrificed in order to satisfy the spirit who are accountable for the evil and illness. When the shaman is finished satisfying and retrieving the lost soul health is then restored to the patient. The healing process needs to be done in very correct and specific ways in the Hmong culture and before they can seek further medical attention the shaman needs to be brought in to seek the soul first. The process of using a Shaman to restore healing does not only reconnect the soul with its owner it also restores connections that were lost during the illness between the patient, family, and community. Being that many Hmong people living in the Untied States today still practice healing with a Shaman it is important that health care workers understanding what and how a Shaman works. When a Hmong person comes in to seek medical attention or is taken unknowingly (is concounsious or unstable and is brought in by another person or family member) it is important to understand that before a procedure or given medications a Shaman may be needed before this process can happen. In their culture in order to a person to heal the Shaman needs to find the lost soul or health will never be restored. Although this might sound strange or be aggravating to many biohealth believers being respectful and understanding is key to winning their trust. A majority of Hmong people do not feel comfortable seeking health care at hospitals and clinics in the U. S. because the practices vastly differ from the practices in their home land. So as a healthcare professional do your research and have an understanding about cultures other than your own. The Shaman is a necessity in order to heal a person in their beliefs and if medical attention needs to be carried out bring in a Shaman and let them first heal the patient by their beliefs so that the needed surgery or care can take place.

The Making of Malcolm essays

The Making of Malcolm essays Making Malcolm: The Myth and Meaning of Malcolm X Malcolm X, one of the most complex and enigmatic African-American leaders ever, was born Malcolm Little on May 19, 1925 and died in 1965; Malcolms life has increasingly acquired a mythic stature (p.3). Malcolm X was one of the Civil Rights Movements most loved and also revered leaders and M. Dyson looks to explore some of the myth and fact about such an influential man. M. Dyson starts by historically and politically giving background information about the making of Malcolm into one of the most controversial, yet influential figures in the Civil Rights Movement. M. Dyson gives the reader warning, Malcolm's complexity resists neat categories of analysis and rigid conclusions about his meaning (p.14) Dyson starts the book giving a critical reading of the books on the Malcolm X. M. Dyson covers different books about Malcolm and does so by placing them into 4 different categories: c.) Malcolm X as a vehicle for psychohistorical d.) Malcolm X as a revolutionary figure M. Dyson aims to critique the different interpretations of Malcolm X and assess the different reasons for the designation of these roles. M. Dyson looks into the use of Malcolm X in forms of re-creation and reproduction of the 1960s cultural nationalism. M. Dyson explains how they kept from turning Malcolm X into a sort of iconic figure on both the cultural nationalism and multiculturalism aspects. M. Dyson challenges black bourgeois nationalists downplay of Malcolm Xs legacy, even as M. Dyson states that these transgressors that the door of the church remain open. M. Dyson critiques and challenges the use of Malcolm Xs persona in black popular culture. Although he makes an interesting argument about the way in which Malcolm X is portrayed and used to deflect ...

Homeland Security - Response & Recovery Essay Example | Topics and Well Written Essays - 1500 words

Homeland Security - Response & Recovery - Essay Example , when to release it?, how to release it?, where to release it?, whom to release it to?, and why to release it?† (Leader for Leaders, 2010). The first step I will take before making any public interviews or communication is to analyze the different stakeholders involved in the specific disaster scenario. This entails the identification and relationship of various stakeholders to the current situation. The second step I will take after identifying the different stakeholders is to determine what specific goals or objectives I have to achieve so the needs of all those involved are addressed. Last but not the least is the third step where an appropriate technique for appraising results is established (Goldschmid, 2011). In a disaster situation, the stakeholders are the general public and the various agencies who are involved in the operation. Having been able to determine those concerned in the disaster scenario, my objective now as the Director of Media Relations is how to communi cate effectively with all of them bearing in mind the factors of communication failure and success. According to Leaders for Leaders (2010) there are five types of communication letdowns that often jeopardize the success of an operation in disaster situations. These communication letdowns or failures which I must avoid are: â€Å"1. ... Therefore the messages given out by the various agencies involved in the operation must be consistent with each other so that the people do not lose faith in officials making the statements. Aside from this a back-up plan must be established when and if the normal communication lines get damaged, which makes it hard for everyone to communicate with each other. A perfect example is the time when Hurricane Hugo devastated South Carolina, where all the communications of relief agencies from various levels of the government were unable to coordinate with each other making the whole relief operation inefficient (Miskel, 2006). The next kind of communication failure is the information released late, where the public is left guessing as to what is really happening and what they should do. In cases of disaster an immediate answer is necessary to prevent the people from taking steps to follow the advises of others whose only interest is to take advantage of the present situation. The third co mmunication failure is paternalistic attitudes where certain facts are withheld. It is essential that people must be given the true facts about the situation and are given the leeway to come up to their own conclusion. By telling the public what they need to know, they are in a better position to decide whether they should or should not be worried about the disaster that happened (Leaders for Leaders, 2010). The fourth communication failure is not countering rumors in real-time. To be able to respond to false information, agencies involved in the recovery operations must monitor the situation as it progresses. This involves being tuned to all information outlets like broadcasts from television and radio

Conflict Management in the Restaurants Essay Example | Topics and Well Written Essays - 1500 words

Conflict Management in the Restaurants - Essay Example Conflicts and disagreements that arise in the restaurant and hospitality industry can differ from those in the corporate sector, said a general manager of an establishment that generates tens of thousands of dollars in sales in week. In the restaurant industry, the hours an employee works are often long and varied and some workers may find themselves spending more time with their colleagues than with their own families, which can lead to conflicts, outbursts and clashes, said the assistant general manager of the same establishment. "Everyone is here more than their with their families," he said. "It's not like you're at a sit down job where you're in front of computer all day or at a press where you can't hear anybody. There's down time, and they are going to talk to each other." "Operators/ managers turn a blind eye to conflict at their own peril-customer loyalty is at stake, says Cathy Greenberg, managing partner of h2c consulting company, with offices in Tuscon and Philadelphia. "Customers will return to restaurants where they feel they're known, she explains. "Ongoing and unresolved staff conflict will lead to high turnover, which in turn will lead your customers feeling disconnected from your business." "Communicating with employees is essentialThe manager has to have an ongoing dialogue with all the staff. Managers need to diffuse and stay on top of situations. How you get there is that ongoing, daily dialogue." (http://pizzatoday.com/features_articles.shtmlarticle=NzE4MXN1cGvyNzE3OHN1Y3J1d....) While handling an issue as it arises is urgent, the manner in which conflicts are resolved have changed over the years. While an employee can be terminated on the spot depending on the severity of the incident, most companies and organizations now have steps that must be followed to resolve issues. "In the last ten years it's really been different," the general manager said. "Ten years ago you could tell them 'if you can't see it my way you can just leave.' Now you have to try and understand what they're thinking and where they're coming from." Procedures today now include verbal warnings, documentation/ write-ups, a three-day suspension and then, finally, termination. The gender of the management dealing with a conflict can also play a role in how the situation is handled. Men and women differ widely on their emotions, reactions to situations and stress levels. This all plays a part in how a situation can be resolved. "Being a female, I

Starbucks Coffee Company Essay Example for Free

Starbucks Coffee Company Essay Executive Summary 1. Starbucks product isn’t only about the goods it provides, but the services and the experience of going to a starbucks as well. 2. Starbucks has two main end user groups, to which Starbucks product has many different aspects that are beneficial to them. 3. SWOT internal analysis reveals strengths of brand image and high standards and weaknesses in over saturation and lack of diversity. Externally, Starbucks has opportunity to expand and diversify to avoid threatening competition and reliance on individual products. 4. Porter’s Five Forces analysis displays threats from high consumer and supplier bargaining power, a large amount of substitutes and a low chance of new competitors although high competition with current competitors. 5. Historically, Starbucks has employed saturation and awareness strategies. 6. Current strategies reflect environmental analysis as Starbucks aims to expand and diversify, as well as raise social awareness and accountability. 7. Starbucks’ competitive advantage draws from its strategies of differentiation, technological advancement and unique atmosphere. Product Description Benefits. Starbucks is an internationally renowned brand, with 20,891 stores in 64 countries. The Starbucks product is not just a range of beverages and food; it is the service, the culture and atmosphere and the sustainability that can be expected in all of its stores. Starbucks represents this in their mission statement: to inspire and nurture the human spirit – one person, one  cup and one neighbourhood at a time. The more obvious part of the product is the coffee as well as other drinks and food, but another significant part of Starbucks product is it’s goals in caring for its community and being an ethical and environmentally friendly corporation. Starbucks’ large market share can be accounted to specifically targeting two main end-user groups and catering the product to their needs. Customers both male and female ages 25-40 make up for a massive 49% of Starbucks total business. Judging by their age we can assume these consumers are most likely working with greater disposable income, and we can assume working people are often busy travelling and on the go. These ages are also typical of people with new families. Another target audience is young adults aged 18-24 who make up 40% of Starbucks total business. Commonly people this age are studying, travelling, and enjoy socialising and hanging out. Generally judging on the age group they will have less income and if they are students they may have no job or only have part time work. The brand image of Starbucks plays a strong part in appealing to consumers. Starbucks’ brand image symbolises wealth and status. Starbucks utilises this by targeting the working adult and creating loyalty to its brand. Starbucks also appeals to young people as they have a strong brand image of being, quite simply, cool. Through many of the benefits of Starbucks we can understand how loyalty is an important role in why it’s customers prefer it to other cafes.There are many Starbucks cafes worldwide, and wherever you are in the world you know what to expect when you walk into a Starbucks cafà ©. Starbucks has a strong sense of consistency throughout its branches, from the menu, to the service and often the appearance of the cafà ©. This makes Starbucks a welcoming and a familiar place wherever you are buying coffee.They also benefit their consumers by being so widely available making it easy to find a Starbucks. Consequently, it is beneficial to travelling and working people who can find a Starbucks in unfamiliar places, providing the coffee and service they know and enjoy. The cafà © itself is part of the service; customers have the option to sit and stay or takeaway as it suits them. The cafà © provides a  great meeting place for young adults to socialize or study and also benefits adults who need to work, meet people or get something to eat or drink during the day. There is free Wi-Fi available which is especially appealing to young people for both study and social networking as well as beneficial to older consumers with work to attend to. Starbucks meets a range of consumer needs by having a very large variety of drinks available, and customisation is a significant part of their appeal to consumers with 87,000 different drink combinations. Because they have such a large variety, they have an option for nearly anybody and this makes Starbucks more appealing over other coffee shops. Young adults have a greater partiality to customisation, as they appreciate having many choices of different flavours and combinations. Older consumers, especially those on the go, often know what they want to order (e.g. trim flat white, long black) but benefit from the consistent menu, which always has their drink available. Loyalty is gained not only from the consistency of high quality products and service to the customers but also from the way in which Starbucks values the community and environment. Howard Schultz, CEO of Starbucks Coffee summed up what makes Starbucks successful in saying â€Å"we have no patent on anything we do and anything we do can be copied by anyone else. But you cant copy the heart and the soul and the conscience of the company.† Company’s International Strategy Starbucks is clearly a leading coffee branch that has been very successful over the past 30 years, with its constantly growing market share. However, in order to further develop a company, they must first assess their internal and external environment to evaluate the organisation’s current position. Internal and external assessment provides an opportunity for an organisation to plan, implement and evaluate their operations. SWOT analysis helps to assess the company’s internal strengths and weaknesses as well as their external opportunities and threats. Starbucks’ strengths are high quality coffee beans, strong brand image, excellent employee management, power within the industry, and unique strategy. Starbucks is one of the most powerful brands in the world (ranked 54th for the world’s most powerful brands by Forbes) and is the most powerful brand in the coffee industry. This prevents new entrants from gaining market share and has helped the organisation to remain competitive. On the other hand, they have some weaknesses; one of the main weaknesses is the fact that the entire business relies on the coffee industry. If the coffee industry faces a hard time, it will have a bad influence on Starbucks directly. One of the main reasons an organisation becomes a Multinational Enterprise is to diversify themselves against the risks and uncertainties of the domestic business cycle. However, Starbucks has over-saturated the US market with more than 3 quarters of their business located in the home market. If their home market goes through a recession, this will have a huge impact on its business. Also, their relatively high coffee price increases competition with low priced brands. After assessing the company’s internal strengths and weaknesses, an organisation then evaluates its external environments. Starbucks may extend their supplier range such as developing new products, not only their coffee but products like health and organic drinks, considering there are emerging groups of people seeking well-being products. They could also expand their business to more countries especially developing countries such as China and India. Regardless of the fact that China has a strong tea culture, Starbucks has been very successful. They currently have more than 600 stores in more than 50 cities in China, yet it is only the beginning. The market share for Starbucks is still growing however, compared to past years; it is not doing so well. The main reason for this is because of the new competitors who entered the market, for example, launch of McCafe from McDonald’s. Increased competition and competitors resulted in a higher bargaining power of buyers that lowers the market price for coffee which made it even harder for a brand who sell expensive, high quality coffees, to compete in the market. Starbucks coffees’ main ingredients are coffee beans and milk. A rise of coffee bean and dairy product prices, as a result of various non-government activities, have a strong influence on the company which may result in a  significant drop in their market share. As mentioned above, Starbucks was successful in China. Though copyright law in China is vulnerable and trademark infringement is a huge problem for all companies who are operating in China. Finally, while the earnings in the US and China remains strong, the profit from the European market has fallen due to a different regional tastes and coffee culture that resulted in a just recognisable increase in total revenue. Overall, these are Starbucks’ internal and external environments assessed using SWOT analysis. Starbucks should work through their weaknesses and threats especially their decreasing customer base due to increased competitors. Also, they should create or develop their competitive advantages through their strengths and opportunities. Furthermore, another method that helps to assess for the external environment is ‘Porter’s Five Forces Analysis’. It is a strategic tool that is used to analyse the level of competition within an industry. There are five stages to assess: bargaining power of buyers, bargaining power of suppliers, threat of new entrants, threat from substitutes, and rivalry among existing competitors. The bargaining power of buyers is high due to an increasing number of influential competitors and the fact that there are no or minimal switching costs to other companies. No or minimal switching costs means a customer can switch to its competitors easily and a growing number of competitors means that there are even higher chance of a customer switching to other companies. The degree of threats of new entrants depends much on its location for example, markets such as UK and US are already highly saturated and as such there are limited chances of a company entering the market. Also, due to the substantial amount of financial resources associated with buildings and property being required to enter the market, the threat of new entrants to the industry to compete with Starbucks is low. The bargaining power of suppliers is also very high. The world demand for coffee is fierce and coffee beans are available only in certain geographical areas such as, Africa, Latin America and some parts of Asia. There are a wide range of substitute products for Starbucks or their coffee including tea, soft drinks, water, juice and energy drinks. This, combined with an increasing focus on the negative effects of caffeine from media and among consumers, increases the percentage of consumers switching to its substitute  products. Also, there are locational substitutes such as pubs and bars where groups of people can gather and spend time away from their house and work environments. Overall, due to an increased number and power of its competitors, especially, McDonald’s (McCafe), Caribou Coffee and Dunkin Donuts, as well as many others from small local coffee shops to large global brands, the rivalry among existing competitors is very high. Unlike the early 90’s where Starbucks begun to expand, there are copious numbers of influential competitors in the market all over the world resulting in very high competition within the industry. Starbucks needs to work on how to reduce the growing power of its competitors and to gain its market share in the long-term. Starbucks holds a strong competitive advantage over its rivals mainly due to its large market share and powerful brand image. Through constant innovation and expansion, Starbucks has maintained a loyal customer base and a competitive standing within the market. The company has employed strategies such as diversifying its products, attempting to gain a larger market share internationally, such as in China, developing sustainability, such as the use of reusable cups and adapting to new methods of marketing, including social media. Starbucks has also come under scrutiny for some of its marketing techniques which include saturating the market and intentionally placing pressure on competition. Due to its early entry to the market, Starbucks was able to solidify its position and reputation. Starbucks originally built this reputation using strategies which were designed to make it the ‘third place’ people spend their time, along with work and home. This similar setting of comfort set Starbucks apart from its competitors and began the culture that now represents the company. Starbucks then began saturating areas within the United States, which created an awareness of the company whilst putting pressure on smaller businesses and competitors. As stated, Starbucks came under scrutiny for its practise of buying out other businesses and saturating the market, with some stores operating at a loss, in order to put competitors in an unfavourable position. The saturation of markets, originally in the US and later worldwide, has created a huge awareness and familiarity of the Starbucks brand. The company, therefore, has a very unique strategy; Starbucks spends less than 1% of its annual revenue on advertising, relying largely on word of mouth advertising. Comparing this to the fact that its competitors spend hugely on its advertising on media (Dunkin Donuts spent more than 83% of its budget on TV and McDonald’s spent 97%), this is very surprising. Starbucks also cuts back on it’s advertising costs through its increasing use of social media advertising. Keeping up with trends such as social media has allowed Starbucks to stay relevant at this lower cost. To illustrate their effectiveness in social media marketing: they are the highest downloaded food and drink app. Further technological advantages Starbucks uses are cloud controlled coffee machines and cloud integrated equipment and staff which allow quicker transfers of information and greater data gathering. This point of difference creates a competitive advantage that Starbucks uses to maintain its dominant position. Furthermore, Starbucks has begun to focus on diversifying its products with a heavier focus on substitutes and complementary goods such as tea and food. With tea becoming increasingly popular in the West, this allows Starbucks to have a lesser reliance solely upon coffee and creates another point of difference from its competitors. Similarly, Starbucks acquired La Boulange bakery in 2012 in order to increase the quality of its food offerings and again diversify its products to attract a larger customer base and decrease its reliance upon the coffee trade. The adoption of these emerging markets allow Starbucks to not only create greater offerings and secure its place within them, but also to become more competitive with rivals where they couldn’t before. An area in which Starbucks has proven to be focusing on is ethical and environmental responsibility. This reflects modern consumer interests and is of greater importance to Starbucks due to its international exposure. In 2013, a reusable cup was introduced at $1 each, while offering a discount on purchased coffee. This both increased overall revenue and created an environmentally responsible image. According to a YouGov Omnibus survey,  taken in January 2013, 28% of Americans had already bought, or planned to buy the reusable cup, showing the importance of the move. Starbucks’ focus on environmentalism reflects the companies focus on improving its image and its understanding of the consumer. In order to further this image again, Starbucks is currently switching its coffee sources to fair trade and aims to be 100% ethically sourced by 2015. As a further display of its social awareness, the company offers its employees an extensive range of benefits and a pay rate higher than its competitors, which resulted in a high employee loyalty, hence, less staff turnover and higher productivity. Finally, one of the larger challenges that Starbucks had faced was expanding internationally and catering to different tastes and cultures worldwide. The aim behind Starbucks’ expansion was to bring the Starbucks experience to the world. Currently, Starbucks is largely focused in expanding in China due to its size and relevance as an emerging world power. Here, Starbucks has an advantage of brand awareness which aids in establishing a dominant position in China, as well as other markets. Keeping up with trends in tastes and technology also helps Starbucks expand internationally; with the emergence of the tea drinking market into which Starbucks is investing and the global increase in communication which Starbucks capitalises upon with its social media and cloud based ventures. It is important for Starbucks to continue looking internationally for its business expansions due to having already saturated much of the US and therefore to reduce its dependence on the US market and its tastes. It is clear that Starbucks is able to continue to be competitive offering its premium priced coffee due to its constant innovation and understanding of its consumers. Starbucks consistently stays ahead of the competition in its technological advances, expansion, social awareness and product development which makes it recognisable and desirable and reduces said competition in the market. The environment which Starbucks presents creates a willingness in the consumer to pay premium pricing for the service as a whole rather than just a coffee. This is ultimately what has differentiated Starbucks from its competitors and allows it to maintain a strong and growing loyal customer base where customers will be less inclined to switch between  companies. The Starbucks company itself possesses several times more market share than any of its competitors and therefore have an almost monopolized status as an entity in the huge coffee industry. It is Starbucks’ large competitive advantages which allow them to hold this position. Not only that, the coffee giant has been able to sustain its presence for over forty years. This begs the question: is Starbucks able to sustain their competitive advantages in the future? Firstly, what are these competitive advantages? Starbucks puts a lot of focus, time and energy into differentiating itself from the competition. This can be seen in the design of its coffee shops around the world, the music played there and the types of products it sells, such as jazz CD’s, thermos’, key chains and coffee-brewing equipment. It is clear to see that Starbucks sets itself apart with the vivid attention to excellence. This differentiation is achieved by the fact that no matter which Starbucks coffee shop you visit the atmosphere will be the same, thus giving the company a status of independency and uniqueness; not following any preconceived ideas. This provides customers with a sense of belongingness which in turn results in sustained business success from loyalty of customers, unmatched by competitors. As our contemporary lives are heading towards a faster and more efficient fashion, Starbucks makes sure to keep current on the latest technology, often times pioneering the latest in technological and communication advancements for its business and customers, far ahead of the times for a coffee shop. This dominance in technological communication is a competitive advantage which not only allows for quick and sustained adoption, but also builds relationships with its customer base. For example, Starbucks was one of the first companies to adopt location-based promotions and mobile payments. In general, retail stores will set up shop in locations based on demographics, locations of competitors, locations of own stores, traffic  patterns and so forth. However, instead of following the rest of the sheep, Starbucks CEO Howard Schultz had a different idea. Schultz decided that his strategy focused on heavily increasing the foot traffic in one specific part of town. By clustering a specific part of town with coffee shops Starbucks quickly achieved market dominance with this competitive advantage. Starbucks boasts the highest frequency of weekly visiting customers out of any American retailer, with over 20 million weekly visitors. Even more so impressive is that the company spends less than 1% of its annual revenues on advertising, against the typical 10% rather, the Starbucks competitive advantage relies on word of mouth. They believe that by creating an intimate and welcoming environment in their stores, as well as providing a great cup of coffee, customers will not only return, but do the advertising for them. Starbuck’s, with its clear points of difference, has created a loyal customer base which is willing to continue paying premium prices for the ‘Starbucks experience’. As Starbucks’ annual revenue increases have been consistent over the past ten years (see table 1), from $3.3 billion to $13.29 in 2012, this experience seems greatly successful and as such it is hard to imagine these competitive advantage formulae and successes being unsustainable for the foreseeable future. References 3 Ways Starbucks Is Innovating and Why You Should Care. (n.d.). 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