Corporate Strategy Tata Corus Acquisition Marketing Essay

Corporate Strategy Tata Corus Acquisition Marketing Essay Corporate Strategy is about enabling an organization to achieve and sustain superior overall performance and returns. It is a core responsibility of senior executives and encompasses a range of critical activities, from defining and refining corporate vision to strategic performance measurement and management. Organizations are facing exciting and dynamic challenges in the 21st century. In the globalised business, companies require strategic thinking and only by evolving good corporate strategies can they become strategically competitive. A sustained or sustainable competitive advantage occurs when firm implements a value creating strategy of which other companies are unable to duplicate the benefits or find it too costly to initiate. Corporate strategy includes the commitments, decisions and actions required for a firm to achieve strategic competitiveness and earn above average returns. Corporate growth strategies Growth can be achieved by different means. One approach is from within and another is from outside -that is combinations. Different forms of combinations are: Amalgamation/Merger: Merger takes place when there is a combination of two or more organizations. Merger does create a new corporation. Acquisition/takeovers: One Company acquires another companys controlling interest. The acquired company operates as a separate division or subsidiary by offering cash or securities in exchange for majority of shares of another company. Sales of Assets: A company can sell its assets to another and cease to exist. Holding company acquisition: This is a quasi merger. Either the total or majority of a firms stock will be acquired. The purpose is only management and control of other. Mergers can also be classified into the following forms: 1. Horizontal mergers take place when there is a combination of two or more organizations in the same business, or of organizations engaged in certain aspects of the production or marketing process. For instance a company making footwear combines with another retailer in the same business. 2. Vertical mergers take place when there is a combination of two or more organizations not necessarily in the same business, which complement either in terms of supply of materials (inputs) or marketing of goods and services (outputs). For instance a footwear company combines with a leather tannery or with a chain of she retail stores. 3. Concentric mergers take place when there is a combination of two or more organizations related to each other either in terms of customer functions, customer groups, or the alternative technologies used. A footwear company combining with hosiery firm making socks or another specialty footwear company, or with a leather goods company making purses, handbags, and so on. 4. Conglomerate mergers take place when there is a combination of two more organizations unrelated to each other, either in terms of customer functions, customer groups, or alternative technologies used. For Example: A foot wear company combining with a pharmaceuticals firm. In our project report, we explore the various facets of perhaps one of the most important acquisitions ever made by an Indian Company, that of Tata-Corus. History of the two giants TATA Group Tata Group is an Indian multinational conglomerate company headquartered in the Bombay House in Mumbai, India. In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India. It has interests in chemicals, steel, automobiles, information technology, communication, power, beverages, and hospitality. The Tata Group has operations in more than 80 countries across six continents and its companies export products and services to 80 nations. The Tata Group comprises 114 companies and subsidiaries in eight business sectors. Its total revenue is $67.4 billion, profit $1.74 billion and total assets $52.8 billion. The main aim of the TATA group is to improve the quality of life of the community it serves. The group has played a pioneering role in a variety of fields after Indias independence and it is widely respected for the initiatives it has taken in different fields for upliftment of the country. TATA Steel Tata Steel Group is one of Indias largest integrated private sector steel companies. The group manufactures and distributes steel, welded steel tubes, cold rolled strips, bearings, and other related products. Tata Steel Group operates across Asia, Europe, and Australia. Tata Steel Group is headquartered in Mumbai, India and employs about 86,600 people. The group recorded revenues of INR 1,473,292.6 million (approximately $32,147.2 million) in the financial year ended March 2009 (FY2009), an increase of 12% over FY2008. The operating profit of the group was INR141,279.5 million (approximately $3,082.7 million) in FY2009, compared with an operating profit of INR 141,213.4 million (approximately $3,081.3 million) in FY2008. The net profit was INR49,509 million(approximately $1,080.3 million) in FY2009, a decrease of 59.9% compared with FY2008.It is the worlds sixth largest steel company with capacity of 31 million tones per annum (tpa).The group is the worlds second most geographically diversified steel producer, with operations in 26 countries and commercial presence in more than 50 countries. Tata Steel Groups strong market position gives it advantage of scale and increases its bargaining power. The story of Tata Steel is a century old. And so is the story of steel in India. Etched with the visions and hardships of a single man, the story has flowed through ages to re-define steel in every way. The saga, which started in 1907, completed a century of trust in 2007 and carries on. Over the years this one company has discovered different avenues of effective steel utilisation and its story defines and re-defines conventional wisdom in more ways than one.The Steel Company obtained its first colliery in 1910, adding six more in course of time. Several mines were spread over the states of Bihar, Orissa and Karnataka. The Tatas soon became the first to own a fully mechanised iron ore mine in India at Noamundi. The Coal Beneficiation Plant at West Bokaro undertook beneficiation of low-grade coal, thus helping in the conservation of the fast dwindling resources of high quality coal. The collieries, the mines and the quarries together furnish the bulk of the raw material requirements of the plant. When the entire world was reeling in the Great Depression, the Tatas survived and supplied nearly three-fourth of the countrys steel requirements. By the Second World War, Tatas production capacities had expanded enough to make their prices lower than those of steel produced in England, raising them to an authoritarian position. Post-Independence the Tatas decided to set on the Herculean task of nation building. The much-required steel for the newly devised Five-year Plans came from the Tata factories. The Company undertook the Howrah Bridge in Calcutta, the Bhakra-Nangal Project and the Damodar Valley Corporation, the port at Kandla, the city of Chandigarh and many more important projects. The last decade of the twentieth century happened to be a very hectic period of self-renewal and growth for Tata Steel. An extensive technological overhaul, several improvement projects, cost control measures, optimising IT support and a strong customer-centric approach were all instrumental in finding the right direction for changing outlooks. At the turn of the millennium, Tata Steel had earned the complete trust of the whole wide world and emerged as a strong entity in the global steel industry.The last decade has been marked by Tata Steels prominent role in the overall development of the country, even during phases of economic turbulence and its decisive foray into more and more global territory. Intense strategic thinking about future expansions, plans for organic growth and initiation of new projects are a few highlights in Tata Steels expanding and more penetrative roles in the larger perspective. The acquisition of NatSteel in 2004 was Tata Steels first overseas acquisition a nd the series of joint ventures and mergers that followed found a peak when the acquisition of Corus, happened in April 2007. But in every positive step that the Company has taken towards growth and expansion, involving diverse cultures and geographies, Tata Steel has never lost sight of its great heritage of social and community responsibility. The long journey of Tata Steel has seen the Company re-define its performance parameters in a number of ways to become the global steel industry benchmark for value creation and corporate citizenship. It ensures a total commitment to its ethical business practices and a people oriented vision. SWOT Analysis Of Tata Steel Strengths Strong market position Integrated steel operations in India Strong research and development (RD) capabilities Weakness Dependence on third party suppliers for raw material in Europe Dependence on Europe Opportunities Expansion in India Joint ventures to develop mining activities Anticipated demand for steel in India Threats Consolidation in the global steel industry Environmental regulations Corus Group Corus Group plc was formed on 6th October 1999, through the merger of two companies, British Steel and Koninklijke Hoogovens, following the privatization of many steelworks companies by the U.K. government. The company consists of four divisions which include: Strip Products, Long Products, Aluminum and Distribution and Building Systems. With headquarters in London, Corus operates as an international company, satisfying the demand of many steel customers worldwide. Its core business comprises of manufacturing, development and allocation of steel and aluminum products and services.The company has a wide variety of products and services which comprise of the manufacturing of electrical steel, narrow strip, plates, packaging steel, plated steel strip, semi finished steel, tube products, wire rod and rail products and services. However, the company is also engaged in providing a variety of services including design, technology and consultancy services. Corus products and services are acq uired by customers from diverse fields such as commercial and military aerospace ventures, the automotive, construction, engineering, defense and security, as well as the rail and shipbuilding industry. In terms of performance, the company is regarded as the largest steel producer in the UK. It is headquartered in London, the UK and employs 21,300 people. The group recorded revenues of  £9,733 million during the fiscal year ended December 2006, an increase of 6.3% over 2005. The operating profit of the company  £457 million a decline of 28.9% over 2005. The net profit was  £229 million in fiscal year 2006, a decline of 49.2% over 2005. SWOT Analysis Of Corus Group Strengths Diversified product portfolio Strong technology Diversified geographic presence Weakness Rising expenses Lack of scale Weak returns Opportunities Positive outlook for the aircraft industry Growing US construction industry Growing Chinese steel market Threats Economic slowdown in the US and Eurozone Consolidation in the global steel industry Increase in energy and fuel costs The Deal The deal (between Tata Corus) was officially announced on April 2nd, 2007 at a price of 608 pence per ordinary share in cash. This deal was a 100% acquisition and the new entity was be run by one of Tatas steel subsidiaries. As stated by Tata, the initial motive behind the completion of the deal was not Corus revenue size, but rather its market value. Even though Corus is larger in size compared to Tata, the company was valued less than Tata (at approximately $6 billion) at the time when the deal negotiations started. But from Corus point of view, as the management has stated that the basic reason for supporting this deal were the expected synergies between the two entities. Corus has supported the Tata acquisition due to different motives. However, with the Tata acquisition Corus has gained a great and profitable opportunity to make an exit as the company has been looking out for a potential buyer for quite some time. The total value of this acquisition amounted to à ¢Ã¢â‚¬Å¡Ã‚ ¤6.2 billion (US$12 billion). Tata Steel the winner of the auction for Corus declared a bid of 608 pence per share surpassing the final bid from Brazilian Steel maker Companhia Siderurgica Nacional (CSN) of 603 pence per share. Prior to the beginning of the deal negotiations, both Tata Steel and Corus were interested in entering into an MA deal due to several reasons. The official press release issued by both the company states that the combined entity will have a pro forma crude steel production of 27 million tones in 2007, with 84,000 employees across four continents and a joint presence in 45 countries, which makes it a serious rival to other steel giants. The official declaration of the completed transaction between the two companies was announced to be effective by Court of Justice in England and Wales and consistent with the Scheme of Arrangement of the Tata Steel Scheme on April 2, 2007. According the Scheme regulations, Tata Steel was required to deliver a consideration not later than 2 weeks following the official date of the completion of the transaction. At the time of acquisition, nearly 49% of Corus was owned by British shareholders, 11% by North American shareholders, 10% by Dutch shareholders and another 30% by shareholders in Germany, France, Belgium and other countries. At first, it had appeared that Tata would get Corus unopposed as the bid had received favourable initial response from the Corusà ¢Ã¢â€š ¬Ã… ¸ Board. The Corus board had unanimously accepted Tata Steels takeover proposal and had even recommended it for shareholders approval. However, things changed soon after CSN entered the fray, making a more competitive offer than Tata. The bidding process continued for three months with CSN countering each successive move by Tata with a higher bid for the equity of Corus. For example, when Tata raised their bid to $9.2 billion for Corusà ¢Ã¢â€š ¬Ã… ¸ equity in early December 2006, CSN countered it with $9.6 billion within hours of the Tataà ¢Ã¢â€š ¬Ã… ¸s offer. When months of takeover battle could not determine the winner, UKà ¢Ã¢â€š ¬Ã… ¸s Takeover Panel announced that it would hold an auction with a maximum of nine rounds to decide the winner. The auction took place on 30th January 2007. On the auction eve, Ratan Tata along with Tata Steel managing director B Muthuraman were monitoring the Corus auction taking place thousands of miles away in London. The Tata Sons director Arun Gandhi, their investment bankers and advisers were in London representing Tata Steel. The entire deal timeline is detailed below: Deal Timeline September 20, 2006 : Corus Steel has decided to acquire a strategic partnership with a company that is a low cost producer October 5, 2006 : The Indian steel giant, Tata Steel wants to fulfill its ambition toExpand its business further. October 6, 2006 : The initial offer from Tata Steel is considered to be too low both by Corus and analysts. October 17, 2006 : Tata Steel has kept its offer to 455p per share. October 18, 2006 : Tata still doesnt react to Corus and its bid price remains the same. October 20, 2006 : Corus accepts terms of à ¢Ã¢â‚¬Å¡Ã‚ ¤ 4.3 billion takeover bid from Tata Steel October 23, 2006 : The Brazilian Steel Group CSN recruits a leading investment bank to offer advice on possible counter-offer to Tata Steels bid. October 27, 2006 :Corus is criticized by the chairman of JCB, Sir Anthony Bamford, for its decision to accept an offer from Tata. November 3, 2006 : The Russian steel giant Severstal announces officially that it will not make a bid for Corus November 18, 2006 : The battle over Corus intensifies when Brazilian group CSN approached the board of the company with a bid of 475p pershare November 27, 2006 : The board of Corus decides that it is in the best interest of its will shareholders to give more time to CSN to satisfy the preconditions and decide whether it issue forward a formal offer December 18, 2006 : Within hours of Tata Steel increasing its original bid for Corus to 500 pence per share, Brazils CSN made its formal counter bid for Corus at 515 pence per share in cash, 3% more than Tata Steels Offer. January 31, 2007 : Britains Takeover Panel announces in an e-mailed statement that after an auction Tata Steel had agreed to offer Corus investors 608 pence per share in cash April 2, 2007 : Tata Steel manages to win the acquisition to CSN and has the full voting support form Corus Valuation Due Diligence Tataà ¢Ã¢â€š ¬Ã… ¸s original bid for Corus had been at 455 pence a share in mid-October 2006, valuing Corusà ¢Ã¢â€š ¬Ã… ¸s equity at $8 billion. But as a result of the bitter fight with CSN of Brazil, Tata finally paid a price of $12.9 billion in an all-cash deal, raising doubts that the acquisition would likely turn out to be a winnerà ¢Ã¢â€š ¬Ã… ¸s curse. Within weeks of the acquisition announcement, Tata Steel had lost over $1 billion in market capitalization, as the market reacted negatively to the high price paid. The wealth-accretion advantages of the deal, if any, would accrue in the long term. Immediately, it meant raising huge amounts of debt and equity to finance the deal. Both Moodyà ¢Ã¢â€š ¬Ã… ¸s Investors Service and Standard Poorà ¢Ã¢â€š ¬Ã… ¸s said they might lower Tataà ¢Ã¢â€š ¬Ã… ¸s debt rating which meant that debt financing would likely neither be easy nor cheap. To finance the Corus buy, Tata Steel embarked upon what was perhaps the biggest fund-raising exercise by an Indian company. It raised funds through a number of sources. These included a rights issue of equity shares, rights issue of convertible preference shares and long-term debt including foreign currency structured issues. Tata Steel and its fully owned subsidiaries Tata Steel UK and Tata Steel Asia Singapore were involved in the unprecedented fund raising exercise by an Indian company. Tata Steel UK was also the SPV for the Corus takeover. The whopping about $13 billion was planned to have been raised as shown in the table below Company Source Amount ($ Mil) Tata Steel Internal generation 700 Tata Steel External commercial borrowings 500 Tata Steel Preferential issue of equity shares to Tata Sons 640 Tata Steel Rights issue of equity shares to its shareholders 862 Tata Steel Rights issue of convertible preference shares 1,000 Tata Steel ADR/GDR EQUITY ISSUE 500 Tata Steel UK Non-recourse debt raised from a consortium of banks 6,140 Tata Steel Asia Singapore Bridge finance 2,660 Total 13,002 By early April 2007, Tata Steel had completed the $12.9 billion (Rs 52,700 crore) acquisition of Corus Group plc at a price of 608 pence per ordinary share in cash. The enlarged company would have a crude steel production of 27 million tonnes in 2007 and would be the worlds fifth largest steel producer with 84,000 employees across four continents. Need for the Deal Introduction The Tata Iron and Steel Company (name later changed to Tata Steel) was established by Sir Jamsetji Tata in 1907. By 2006 it was Indias largest integrated private sector steel company. With its recent acquisitions and mergers, the company has become a multinational with operations in various countries. It was recognized as the worlds best quality steel producer in 2005. Though domestically the company had seen significant growth in the 100 years, it ranked a poor number 56 globally in terms of steel output. In order to enhance its market share in the global market Tata steel made several smaller foreign acquisitions, including Singapores NatSteel and Thailands Millennium Steel. But these small incremental deals would not enable Tata Steel to capture the sudden opportunity that had arisen in the steel market. We believe that Tata Steel had to act in response to the changing environment, the industry structure and to exploit its competencies and resources at its disposal, which led to its decision of acquiring Corus, a steel firm much bigger in size compared to Tata Steel. We propose to explain the need for the related linked diversification, logic and reasoning behind the deal through the Resource-Based Model of Above Average Returns and the I/O Model of Above Average Returns. Resource-Based Model of Above Average Returns Deriving Synergies There were a lot of apparent synergies between Tata Steel which was a low cost steel producer in fast developing region of the world and Corus which was a high value product manufacturer in the region of the world demanding value products. Synergies also existed in terms of sharing and manufacturing practices, shared services and purchasing. Also there were other synergies between the two companies; Corus was a large player in value-added services while Tata Steel was one of the lowest cost producers of steel in the world. According to Tata Steel Annual Report of 2007-08 the expected synergies and efficiencies had already started flowing in and would bring in annual benefits of USD 450 million per annum by year 2010. Raw Material Tata Steel also has a relative cost advantage because it owns iron-ore mines which Corus did not. Corus was fighting to keep its productions costs under control and was on the lookout for sources of iron ore. (Tata Steel owns enormous volumes of high-quality iron ore and other minerals needed for steel-making. Captive raw materials linkages have given the modernizing and expanding Jamshedpur mill a competitive edge. Tata Steel is set to build greenfield mills in iron ore-rich states of Orissa, Jharkhand and Chhattisgarh). The joint entity will have a self sufficiency in raw material. Cultural There was a strong culture fit between the two organizations both of which highly emphasized on continuous improvement and ethics. Tata steels Continuous Improvement Program Aspire with the core values: trusteeship, integrity, respect for individual, credibility and excellence. Coruss Continuous Improvement Program The Corus Way with the core values: code of ethics, integrity, creating value in steel, customer focus, selective growth and respect for our people. Importantly, the rest of cultural differences between the two companies had been taken care of and the two merged entities were working under their joint management. Tata Steels earnings per share had improved after the merger. Sharing Competencies According to Ratan Tata, post-merger the immediate focus would be on extracting synergies from Corus. He felt that there was scope to make Corus a competitive steel company by inculcating the creativity and cost-consciousness in Corus as had been generated in Tata Steel. Product Mix Geographical and product mix possibilities. The combined entity will emerge as the second most geographically diversified steel company. It will have access to high valued- added product mix and strong market positions in automotive, construction and packaging. Reputation The Corus acquisition allowed Tata Steel to enhance its reputation and acquire a Global name. This has the potential to open up other markets for steel for Tata Steel, improve its bargaining power with respect to suppliers and customers. Sharing Complimentary Strengths Corus has a strong Research and Development (the number one position in the entire world) and product development for value added products in auto, construction and packaging which compliment what Tata Steel is doing in the fast growing Asian markets. A merger would complement their respective strengths. Low Cost Slabs Tata Steel has large supply of iron ore slabs from its green fields established in India in places like Orissa, Jharkhand, etc. Tata Steel can supply this slabs to Corus once these green fields in India are complete. In addition, there will be other ways to create value, linked to the projects of Tata Steel in India today. Patents and Technological know-how Corus has eighty-one patents that have been filed and assigned to the Corus by the United States Patent Trademark Office. Tatas completion of the acquisition meant it ended up becoming the owner of these patents. There would be technology transfer and cross-fertilization of RD capabilities between the two companies that specialized in different areas of the value chain. Distribution Network Tata has a strong retail and distribution network in India and SE Asia. This would give the European manufacturer a in-road into the emerging Asian markets. Tata was a major supplier to the Indian auto industry and the demand for value added steel products was growing in this market. Hence there would be a powerful combination of high quality developed and low cost high growth markets. With Tata Steel the cheapest manufacture of steel in the world the new company will become highly profitable. Strategic and Integration Committee A Strategic and Integration Committee was formulated to develop and execute the integration and further growth plans. Appropriate cross functional teams were formed under this committee to look into specific issues. There were some concerns over the lower return of capital employed and EBIDTA margins in 2007-08 which seemed to have declined. As debt would be repaid over the years, the EBIDTA margin as well as return of capital employed were likely to improve, but would need to be carefully watched. I/O Model of Above Average Returns Scanning At around eight per cent of GDP growth, India is seen well poised for a burst in development, a high increase in production output and a surge in demand for various goods from the common people of India. Industry experts are buoyant and bullish on the economic, demographic (in terms of young workforce, increase in incomes and hence an increase in consumption), and the helpful political environment (in terms of tax reliefs to industries, a commitment from the government to implement and introduce policies which further the interests of commerce). The Tatas were able to identify the early signals of potential changes in the environment and detect the changes that were underway. They were able to connect the dots and realize that as a result of the above changes in the environment the steel industry would look more and more attractive. There would be more need of steel due to the growth of car and aviation industries. Monitoring It was clear that in a fragmented steel industry to get the cost advantages and a competitive edge to exploit the emerging opportunities consolidation was needed in the steel segment. This logic was the basis for a spree of mergers and acquisitions pursued by Tata Steel. The rapid progress of the Indian automobile, engineering and construction industries means that the country will need more and more high-quality steel and it is seen that the global steel prices are on an incline. Access to Corus technology will, in course of time, allow Tata Steel to move up in the value chain. The acrimonious but successful Mittal-Arcelor deal also gave Tatas sufficient signal on consolidation being the emerging trend in the steel industry. Forecasting Although, Tata Steel was Indias largest integrated private sector steel company but globally ranked number 56 in terms of steel output. The Tatas realized that the Corus buy would instantly catapult Tata Steel to the position of 5th largest steel producer in the world, and provide access to the latest technology and strategic European markets as Corus had plants in Britain, Germany, France, the Netherlands and Belgium. It was also expected that Tata Steel would benefit from reduced production costs due to large volume, combined RD operations and broader product range. Corus acquisition would also dovetail with Tata Steels efforts to move up the value chain, as the former had built a reputation as an established supplier to the aviation and auto industries. Assessing Brazilà ¢Ã¢â€š ¬Ã… ¸s CSN and other players were also trying hard to acquire Corus which meant that a quick acquisition was the only alternative. Tatas had and assessed the situation realized the need to act quickly and swiftly. It was clear that a small window for a big opportunity had opened up for Tata steel. This was a risky consolidation, considering that the future of Tata Steel is dependent mostly on Corus performance but it is well known that entrepreneurial decisions involve risk. We can understand that it may be one of the entrepreneurial decisions that Tata Steel had to make for the future success of the company. Aftermath of the deal Post merger integration is the biggest challenge in any acquisition. But before we look at the challenges, let us first look at the immediate synergies that TATA Steel aimed at before going for the deal and how it obtained them after the deal. Synergies Advantages After the acquisition, TATA-Corus combine became the 5th largest steel producer in the world with an output around a quarter that of the largest, Arcelor Mittal. Before the deal, TATA Steel was not ranked among the top 50 global steel producers in 2005/06, producing just 5.3mn tonnes. Corus, by contrast was the 9th largest producer with an output of 18.2mn tonnes. Economies of scale have a very significant impact on any steel firm. This deal came at a time when consolidation in the steel industry was a necessity with increase in demand from China A growing presence in Asia and the developed European economies would surely leverage the economies of scale from Europe and harness growth from Asia The two corporations made a formidable presence a presence in 42 countries, a combined capacity of 25mn tonnes and a collective sales turnover of Rs 1 lac cr (March 2008 estimates at the time of the deal) The deal came at a perfect time for TATA Steel after its successful acquisitions of Singapores NatSteel in 2004 and Thailands Millennium Steel in 2005. Acquisition of Corus, a steel giant in the Western markets, gave TATA access to the vast distribution network as well as the opportunity to become a global player. TATA is a low cost producer of steel and Corus is famous for its value additions and technology especially in manufacturing of steel used in high rise buildings. The acquisition paved the way for TATA to access the RD facilities of Corus as well as to introduce its low cost production techniques in the Western markets. This can be considered as one of the most important synergies in the entire deal. The deal helped the TATAs in getting 20mn tonnes of steel capacity at virtually half the price as such a capacity would have required nothing less than $20bn $25bn as per 2006/07 estimates. The synergie

Red Bull Analysis | A Multinational Company

Red Bull Analysis | A Multinational Company Executive Summary Red Bull has turned itself into a multinational company that offers a product that enhances the mind and the body. Their method of managing their internal and external situation and circumstances has become an interesting topic for many. Thus we conducted some analysis to look at Red Bulls strategies, and especially the international strategies. The external analysis was a mix of positive and negative observations, for example they have the advantage of the customer loyalty and the production cost, and however, they are in the territory of major players in the beverage industry which put them at risk. Nevertheless, the industry analysis and peer review helped to shed some light on Red Bulls external report, where we can see a substantial growth in the industry and Red Bull headship in the energy drink market. Through the internal analysis we observed that Red Bull leads a proactive approach towards their business by adopting conventional and unconventional methods to expand their horizons. Through the value chain model, we observed that Red Bulls internal marketing and sales strategies have shown ground breaking success on international scale. Moreover, the HR has accomplished to attract the right candidates to achieve the required goals, simple because they are young and know the young target market exactly. The generic strategy analysis of Red Bull has presented Red Bull a differentiated product within its market and a focused-differentiated product within the beverages industry. The norm is that any kind of differentiated products target few selected customers, however, Red Bull did become selective but became massively popular among the youth, and hence, they produce over 1 billion cans each year. The SWOT analysis they was conducted on Red Bull has crystallized some Weaknesses and threats. However, the Strengths and Opportunities outweigh the downside of Red Bull; moreover, the Weaknesses and Threats that Red Bull faces can easily be managed and fixed by Red Bull. We can safely conclude that Red Bull has adopted the right target market and the right method to communicate with the target market. More interestingly, we can see that Red Bull has adopted a product and especially a marketing strategy that can easily be copied to different counties and culture. In other words, it has spoken the language of the youth. History Background History A red cape is not always necessary to attract a bull towards you; nowadays it has become available in a can in the hypermarket, supermarket, grocery and the club near you. This all has become possible thanks to a visionary man called Dietrich Mateschitz, who is the discoverer, modifier, and introducer of the internationally famous drink, Red Bull. It all started in Hong Kong, in 1982, when Mateschitz was at the hotel bar sipping a famous local health tonic. While he was drinking he had a vision of marketing an Asian drink in the western countries. About two years from the vision, the Austrian Mateschitz teamed up with a Thai business man called Chaleo Yoovidhya to produce this product. Together they fiddled with the product, to take out the syrup nature of the product and make it fizzy. Canned in a silver and blue container, with a brand the shows two red bulls going head-to-head against each other, hence the brand was named Red Bull. (Red Bull Founder Rides Wave of Success) In 1987, the product was then taken to Austria where it had its first groundbreaking success in no time. In started going international in 1992, when they entered Hungary. Red Bull is currently active in over 100 countries, energizing the population and creating competition as they go along. One source mentioned that there are over 150 energy drink brands, however, all inferior to the mighty Red Bull (A REFRESHED CREW IS AN EFFICIENT CREW). With over 1 billion cans sold each year, Red Bull controls 70% of the worlds market share of energy drinks. Background Red Bull became strong when they created a high quality drink that is only made in Austria. Furthermore, all of its ingredients are synthetically made in pharmaceutical companies to grantee high quality and safety. Moreover, due to the ingredients of the product, it is said that Red bull (Red Bull FAQ): Improves performance Improves concentration and reaction speed Improves vigilance Improves emotional status Stimulates metabolism However, the main reason for the success of Red Bull is in its advertising style. Red Bull tends to spend very little on conventional or traditional marketing tools, like TV and Print ads. Their marketing strategy is usually out of the box and creative. Red Bull tends to be more active in sponsoring extreme spots and giving away samples in local events. Due to the fact that Mateschitz has been involved in Formula One racing for more than a decade, he used the events to draw attention to his brand. In addition, he sponsored the World Stunt Awards, an annual fund-raiser to help injured stunt workers (Red Bull Founder Rides Wave of Success). Moreover, some observers say that Red Bull uses the anti-branding method of advertising, where they broke the usual method of marketing and branding. Actually what they did was use the buzz marketing strategy or better known as word of mouth. With this strategy, they associated their brand with the youth culture and extreme and adventure-related spo rts, such as motor sports, mountain biking, snowboarding and dance music. Thus they targeted their brand directly to people from Generation Y, the so-called millennials: people born after 1981 who were believed to be cynical of traditional marketing strategies (A Look at a Key Feature of Red Bulls Business). The Buzz over Red Bull among the youth and their underground attitude has created Red Bulls reputation as the drink within that community. That is why Red Bull continues to use Viral marketing internationally, where the company would rather restrict the supply of Red Bull and not advertise it, expecting that growing numbers of target consumers to catch the bug and its reputation would spreads. Through this strategy, Red Bull has successfully captured 70% of the à ¢Ã¢â‚¬Å¡Ã‚ ¤1.6 billion market (A Look at a Key Feature of Red Bulls Business). External Analysis Porter Five Force Analysis The external analysis is one of the most important steps that a company should take to achieve to its goals and objectives. Moreover, for taking this step we should be aware of the essence of formulating competitive strategy which is related to company and its external environment. Also, we know that the relevant environment is very broad; encompassing social as well as economic forces, the key aspect of the firms environment is the industry or industries in which it competes. In addition, taking care of industry structure which has a strong influence in determining the competitive rules is very important because it includes the game as well as the strategies potentially available to the firm. Forces outside the industry are significant primarily in a relative sense; since outside forces usually affect all firms in the industry, the key is found in the differing abilities of firms to deal with them. Michael porter has offered a unique framework for make an easy way to analyze. Michae l Porters framework for industry analysis is described in his book Competitive Strategy (1980). In this book Porter claims that there are essentially five forces which determine the underlying structure of an industry. Rivalry among existing competitors, buyers, suppliers, potential entrants into the business and Threat of substitute products are those five forces which can have positive or negative effects on industry structure by making the industry more or less competitive. Potential Entrants In this case the potential competitors of red bull are soft drinks companies, which can produce energy drink with out adding bubbles. If the barriers of entry are high, it is difficult for potential competitors to enter the market. Three main sources of barriers to new entry: brand loyalty, absolute cost advantages, and economies of scale. Brand loyalty Due to the done research, innovation in creating new energy drinks, proper and profession advertisement, holding many special events and sponsorships, and having high quality for its products makes Red Bull as well known brand with a strong brand loyalty which is a barrier for any new entrant to enter the energy drink industry to compete with it. Cost advantage According to the Michael Porter, normally cost disadvantage is a big barrier for companies to enter an industry as new entrants because it can be cost advantage for existing companies in that industry. Also, companies with the help of cost advantages can compete and beat their competitors very easily because usually it is difficult for new entrants to match their companies with the lower cost structure. Therefore, Red Bull because of Red Bulls superior production and operation processes, and their experience in the energy drink industry, and control of its inputs according to their experience in producing red bull drinks, benefit the cost advantages with keeping its quality in the high level. Although there are many energy drinks existing in the industry with the lower price rather than Red Bull, as quality aspect they have not cost advantages both in quality and price, so Red Bull is steps ahead from its competitors in this case. Customer switching cost In food and beverage industry there is no switching cost for costumers with considering the level of quality, therefore it can be considered as threat for existing companies in this industry. In this case, Red Bull is not exceptional, so they need to keep their quality at the same level to not loosing their market share by coming new entrants because it is real threat for them. Government regulations One of big issues and always concerns for companies which like to go internationally is government regulation, also, in this case some Europe countries have problem with selling Red Bull and have tried to ban it. They claim that Red Bull was the cause of death of people in those countries. France, Belgium, and Sweden ban using the mixture of Red Bull and alcohol. So, it can be a threat for them in taking the market share and having a bad image for their brand. . (French Ban on Red Bull (drink) Upheld By European Court) Intensity of Rivalry Rivalry in some industries is characterized by such phrases as warlike, bitter, or cutthroat, whereas in other industries it is termed polite or gentlemanly. Energy drink industry has an intense rivalry because of a number of interacting structural factors: Industry competitive structure Due to the competition in the energy drink market, Red Bull focuses on non-price competitive weapon like offering exhilarating events, high quality products and sponsorship. In contrast with other competitors Red Bull attract more costumers to its company by growing in 45%marketshare. Accordingly Red Bull has a major influence on its competitors performance in the industry because Red Bull is one of the pioneers in energy drink industry and many companies try to obey and consider Red Bull as benchmark. Industry demand In the energy drink industry, because of the various proper advertisements to encourage people to use and drink energy drinks (giving the image that people can fly) the demand for drinks is increasing. Thus, this is a good point for the company because there are lots of opportunities for every company to fill the current demand and rivalry tend to reduce in the industry, also there is space for everyone to jump in enter the industry (growing stage), and the profit of the company is going to increase which is a goal that every company is seeking it. Buyers Having strong and stable costumers are suppliers and producers concerns, producers like to have costumers with large quantity level of ordering and stable financial status basically in energy drink industry especially Red Bull costumers (buyers) are wholesalers and big retailers. These buyers buy the energy drinks through the company or its representatives, and resell them to supermarket, bars, restaurants and end users. Red Bull faces buyers with high level of bargaining power, and it is real risk for Red Bull. Main reasons for this high bargaining power of buyers in this case are; the switching costs in the energy drink industry are very low. So, Red Bull buyers can switch from Red Bull to other energy drink companies which produce it with lower prices without any difficulty. Also, in most cases energy drink buyers (retailers and wholesalers) purchase products in large quantities, and it is obvious that the more buying in quantity, the more bargaining power the buyer has. So they c an use their power to reduce the cost of energy drinks. Suppliers The bargaining power of suppliers is the same story like bargaining power of buyers but from other side. Red Bull company has both kind of suppliers as bargaining power, some very strong and others weak, so they can balance between them. For instance, the supplier of Glucuronolactone is Glaxo Smithkline Company. Red Bull energy drink buys their Glucurnopolacton inputs from this company. So the bargaining power of this supplier is very high on Red Bull. But the other ingredients are assembled from several small suppliers, and Red Bull has the bargaining power on them. Also, Red Bull has many channels and substitutes suppliers for its normal raw materials, so they can switch from any supplier to cheaper and more flexible one. Substitutes All producers always carry the concern of substitute products for their products and always looking for ways to protect and survive themselves from this phenomenon. Energy drink industry isnt an exception, so players in this industry always try to keep level of quality high, convenience price and other thing which may make costumers more satisfy. Coffee industry can be a threat for energy drinks because of the existing caffeine in coffee and it can be a powerful potential product substitute for energy drink. Therefore, Red bull must take care of its pricing strategy and product quality to keep its costumers and satisfy them more day by day which they were successful due to reports not only Red Bull could protect its products against other substitutes but also, they have increased in their market share in US market by 45% . Industry Analysis and Peer Review Industry Characteristics Beverage industry is divided into many categories such as alcoholic vs. non alcoholic, (hard vs. soft drinks) and within soft drinks still there is other segmentation such as carbonated soft drink (CSD) and non carbonated soft drink. Carbonated Energy Drinks account for less than half of the total volume. This figure is heavily skewed however by the popularity of still brands in Asia (Canadean Press release) According to Beverage Digest, in 2004 the U.S. non-alcoholic refreshment market totaled 14 billion cases (192-oz). Carbonated soft drinks made up 73.1% of the total with non-carbonated products comprising 13.7% and packaged bottled water accounting for 13.2%. Americans spent roughly $92.9 billion annually on refreshment beverages. Energy drink is a relatively new product introduced in 80s and has been growing noticeably with the market more than doubling in size since 1998 (Canadean Press release). The following chart is evidence of this inevitable growth and the attraction of this growth for drink manufacturer. The industry has been experiencing a significant growth and still growing at the speed that draws the big players in soft like Coca Cola drink to enter to this high margin business. Food and beverage market are critical enough that out of 100 new product development 90 NPD fails. The failure results from a poor interpretation of consumers trend and translation of those to opportunities. Austrian company, Red Bull, as a pioneer trend settler has made its fortune from their unique strategies in advertising, marketing and other products characteristics such as Packaging, Flavor, color and Product claim. Global consumption According to Beverage digest report, Asia is the largest leading market in consumption of energy drinks followed by Western Europe and North America as the second and third markets. Asia has been loosing some of 20% of its market share is past 6 years. However, this decline has been offset by the second and third market mainly due to the steady growth in market of carbonated E.D in North America. North American market is now almost 40 times greater than it was in 1998 Peer Review In North America today more than 200 energy drinks existed in US. According to bevNET.com, after a rigorous marketing research the best energy drinks are AMP by Pepsi Cola, KMX Red by Coca-Cola Company Red Bull by Red Bull North America. Red Bulls market dominance seems assured. No other competitors have either the distribution channels or, more importantly, the posture of rebellious infamy to be considered real threats. Year 2001, in UK energy drinks market 21 new drinks have been introduced that would have force the red bull into a competition. However, red bull can still enjoy being a market leader. In the following table there are representations of top 14 non- alcoholic markets where some of them are in the specific market of the energy drinks. Coca-Cola(Juice, Soft Drinks, Water) ($21bn) Suntory(Water, Soft Drinks) ($4.4bn) Nestle(Coffee, Soft Drinks, Water) ($19bn) Starbucks(Coffee) ($4.0bn) PepsiCo(Juice, Soft Drinks, Water) ($10bn) Sara Lee(Coffee) ($2.7bn) Kraft Foods(Coffee, Powdered Drinks) ($4.6bn) Tchibo(Coffee) ($2.7bn) Unilever(Tea ) ($4.5bn) Red Bull(Energy Drinks) ($1.6bn) Cadbury Schweppes(Soft Drinks) ($4.5bn) Cott Corp(Juice, Soft Drinks) ($1.4bn) Danone(Soft Drinks, Water) ($4.5bn) Ocean Spray Source: http://www.mind-advertising.com/sectors/sector_softdrinks.htm Industry Life Cycle Energy drinks were originally pioneered by Asian companies, but they became popular in Europe the late 80s with the arrival of Red Bull. There are more than 200 energy drinks existed in US market only and this figure is increasing due to the high margin of this business. In 2004, carbonated soft drinks posted the growth of 1% which is unlike its usual trend, case of growing 2% to 4%. Noticeably, this inevitable growth was driven by Diet and Energy drinks. While other carbonated drinks posted volume change of one Digit, brands like Red Bull and Hansen Natural reported the 45% and 56% of positive volume change in 2004. The market, now estimated to be worth $10 million, has been predicted to grow to $300 million or even as much as $2 billion in the next few years. Double digit growth in the market is the main factor contributing to Energy drinks life cycle in its embryonic phase (growth). Since the market is not old enough, the number of players are increasing and even the Coca Cola and Pepsi are the new entrant which add to the well-built assumption of embryonic phase. Brand loyalty and high expectations are still questionable in this stage and its because the consumers are still exposing to new products and new claims. Thus, players are fighting for product feature extension such as low-carbs and sugar free plus new products claims such as improve concentration, reaction time and endurance. After introduction of Red Bull in late 80s, industry went to an introduction phase. By 1998, the size of the industry doubled and still growing with a fast pace following highlighted area in the graph is an approximate stage of the life cycle at the moment. Internal Analysis Value Chain Primary Activity: Inbound outbound logistics Logistical issues at Red Bull in of high importance. Due to the fact that all ingredients in the Red Bull drink is synthetically made by pharmaceutical companies, they make sure that their products are carefully handled to maintain the quality and avoid unnecessary costs. Red Bull always makes sure that they align with premium logistics provider to achieve their strategic goals. Red Bull aims to have web-based visibility on their supply chain, thus they base their logistical activities or selection on: Flexible warehouse network Transportation management capabilities Strong information technology offering With 1,600 employees working for Red Bull world wide (Gulf News, Red Bull plans to set up Dubai plant), Red Bull required those standards as they are experiencing year-after-year of high growth, which make the inventory forecasting and management challenging. That is why logistical issues have become increasingly important, and that is why they choose to outsource the logistics to companies that can comply with their network of multi-client warehouses needs (Red Bull OH Logistics). Interestingly, Red Bull uses small distributors in small regional markets, if those small distributors dont perform up to Red Bulls standards they establish a warehouse and push young people to stuff their vans with Red Bulls product and distribute it every where. This way, the small distributors generally break even within three months and are profitable within six (A Bulls Market The marketing of Red Bull Energy Drink). Primary Activity: Operations There is little information about the operations process of Red Bull. However we will enlighten you with the contents and brief information about the packaging company that Red Bull deals with. The great product which is provided by Red Bull one of its main elements of success. Known for improving performance, improving concentration and reaction speed, improving vigilance, improving emotional status and stimulating metabolism, Red Bulls secret is in its ingredients. The ingredients in each Red Bull drink (250ml) consist of: Taurine (1000mg) Glucuronolacton (600mg) Caffeine (80mg) Niacin (20mg) Vitamin B6 (5mg) Pantothenic Acid (5mg) Vitamin B12 (0.005mg) According to Red Bull, It is a combination of all the ingredients together, which result in Red Bulls benefits (Red Bull, Ingredients).. The packaging process of Red Bull is fully done in Austria. And the supplier of Red Bulls cans is Rexam, and they are considered to be the worlds largest provider of beverage cans. Rexam manufactures different types of cans for different industries, however almost half of their revenues come from Coca-Cola and Pepsi Cola. Moreover, industry estimates present that Rexam gained about $22 million from the sales of Red Bull cans (How Does Red Bull Package Its Product?). Primary Activity: Marketing and Sales: With the control of 70% of the à ¢Ã¢â‚¬Å¡Ã‚ ¤1.6 billion market (about à ¢Ã¢â‚¬Å¡Ã‚ ¤1.12 billion), Red Bull has achieved all of this through intensive unconventional marketing strategies. Targeting young people, mainly the Y-generation, Red Bull has utilized eccentric marketing tools that has extremely effective on the target market. The strategy of sponsoring local activities like the Red Bull music academy in the USA, parachuting in South Africa, Go-Karts in Kuwait, and many more in different countries has achieved its target of attracting its target market which gets excited when viewing such sports. Some of the strategies used for marketing Red Bull include: Using pick-up trucks as mobile displays, painted blue and silver with a giant can of the drink mounted on top of the vehicle. Designed to be eye-catching, these devices were aimed at promoting the red bull brand as youthful and slightly off-the-wall. Cans of the drink were also given out free to people on the street who had been identified as being in need of energy. Red Bull was given to club DJs, empty cans would also be left on tables in hot spots such as trendy bars, clubs and pubs. Secondary Activity: Technology The information about the technology that Red Bull uses was quite scares. However we could safely say that Red Bull little activity done on their RD side because Red Bull does enjoy any sort of economies of scale. Red Bull has only one main product, which is the Red Bull energy drink and recently they introduced the new Red Bull energy drink sugar-free. Hence, the main difference between the original Red Bull drink and the sugar-free drink is that it has 0g of sucrose and 0g of glucose, where the original product has 21.5g of sucrose and 5.25g of glucose. Moreover, each sugar-free drink has only 8 calories (EU)/ 10 calories (USA), yet it does not loose any of its energetic effects (Red Bull, Ingredients). Secondary Activity: Human Recourse Red Bull is famous for practicing what they preach, especially when it comes to recruitment. Due to the fact that Red Bull promotes their product as a Hip and young product, they make sure to recruit staffs that are young, in touch with youth culture, dynamic and innovative. For example, they achieve that by recruiting university students as student brand managers to promote its product among young student groups (What Sort of People Work For Red Bull?). However their recruiting does not happen by Red Bull themselves, but they makes sure that it is implemented by all of the outsourced activities. However, it is known that most of Red Bulls 1,600 employees are marketing experts and are the real movers of the Red Bull drink (Marketing Eye, Red Bull Car). Group Customers and Market Segmentation As it is known any successful company should have a certain customer group. The customers that were targeted by Red Bull were the ones that were looking for excitement, alertness, and concentration depending on the age, status, and lifestyle. Four consumer categories were Red Bulls target under the age of 16-30: students, club people, sport people, and employees. College students were the main target of Red Bull. Since college students look for something that would enhance their concentration on doing their assignments and projects, and staying overnight for studying for exams then Red Bull is the best solution for them. It would improve their concentration in their studying Moreover; Red Bull has used this group to enhance their promotion. According to Biz/ed, throw parties those students were emboldened to market the product in the campuses of the universities as what they call them student brand managers. Those students collect the information and make a report of a market data research to the company. Depending on that strategy and the youth generation (high school and colleges students), Red Bull was able to spread the reputation and the popularity of the drink and concentrating on supplying the product rather than applying the traditional marketing ways of promotion (A Look at a Key Feature of Red Bulls Business). The second category of Red Bull customers are the night club people, since the drink has some substances that would increase the persons emotional status. Moreover, Red Bull is offered in the nightclubs depending on the cultural background. For example, nightclubs in Dubai offer Red Bull for the people who do not drink alcohol like the Muslims, which made it a major substitute for alcohol to that group. However, Red Bull is still individually mixed with alcohol to create both the Red Bull highness and the alcohol sensation. Furthermore, Red Bull has also made music events for those groups of customers like the Red Bull Music Academy in 2005 in Seattle, Washington in the United States. (Red Bull Music Academy 2005) For the physical exertion that the drink offers, Red Bull has also promoted the product for the sport people. Among those people, there are the athletes, the racing drivers, the airborne-sport people, water-sport people, the bikers, the skateboarders, and the skiers. Red Bull highly endorsed this group with many sport festivals, and one of the famous one among those is the Red Bull Dolomite Man that took place in Austria in 2005. (Red Bull Dolomite Man) Red Bulls minor groups are the white-collar and the blue-collar workers. Red Bull can support white-collar workers to concentrate more on the job to improve their performance, and it would also help them stay overnight if he or she needed. The drink would also allow the blue-collar workers to work extra hours with out the feeling of exhaustions for the physical exertion that the drink provides. However, Red Bull did not concentrate on this group, so there were no special efforts directed towards them. Within the four groups, there a considerable amount of customers who look for diet product. For that category, Red Bull produced the sugar-free Red Bull to combine the diet customers with rest of the customers that are within the four groups. Business Level and Generic Strategy In the generic strategy Red Bull there are two views, there is a generic strategy from energy drink market perspective, and there is a generic strategy from soft drink market perspective. From the energy drink market perspective, since Red Bull has few economies of scope, the strategy adopted by Red Bull to follow is differentiation. The price of the drink is about 5Dhs in the UAE, which shows the clear differentiation of the product, especially in a market where every body is competing on the same customer segment. According to Biz/ed, Red Bull was able to build a strong brand image through: using Red Bull cars that had big cans on them, giving free cans to people, and providing Red Bull cans to club DJs (A Look at a Key Feature of Red Bulls Business). This strategy made Red Bull to be the market leader of 70% market in the energy drink market. From the soft drink market industry wide perspective Red Bull applies the Focused-differentiation generic strategy. Red Bull has a very good brand image in terms of soft drinks industry. The drink can only maintain this image through focus-differentiating the product by separating their customers according to the demography (age, lifestyle, culture) and the geography, since the industry has many aggressive competitors with a powerful brand image like Coca Cola and Pepsi. SWOT Strengths Industry leadership Throughout the world, Red bull is the leader in the energy drinks market with annual sales of billion dollars. According to the statistics, in year 2003 red bull achieved 80% brand share of the energy drinks market in the UK. Also in the Europe, they produce two-thirds of overall volume in the region. Moreover, Red bull is competing in 13 West European countries and is the main leader in 12 of these and other top 20 brands are having only 17% of share. Since year 2000 (compare to 1990s), it has been a clear shakeout, and fewer new brands are launching new products to the market. Furthermore many products offered by leading drink manufacturers could not compete with Red bull in the market, such as Coca-Colas Burn. (Red Bull SWOT Analysis) Marketing capabilities The successful marketing strategies and consumer awareness of Red bull introduced stimulation drink

The Human Brain :: essays research papers

INTRODUCTION The human body is divided into many different parts called organs. All of the parts are controlled by an organ called the brain, which is located in the head. The brain weighs about 2. 75 pounds, and has a whitish-pink appearance. The brain is made up of many cells, and is the control centre of the body. The brain flashes messages out to all the other parts of the body. The messages travel in very fine threads called nerves. The nerves and the brain make up a system somewhat like telephone poles carrying wires across the city. This is called the nervous system. The nerves in the body don't just send messages from the brain to the organs, but also send messages from the eyes, ears, skin and other organs back to your brain. Some nerves are linked directly to the brain. Others have to reach the brain through a sort of power line down the back, called the spinal cord. The brain and spinal cord make up the central nervous system. The brain doesn't just control your organs, but also can think and remember. That part of the brain is called the mind. PROTECTING THE BRAIN Twenty-eight bones make up the skull. Eight of these bones are interlocking plates. These plates form the cranium. The cranium provides maximum protection with minimum weight, the ideal combination. The other twenty bones make up the face, jaw and other parts of the skull. Another way the brain keeps it self safe is by keeping itself in liquid. Nearly one fifth of the blood pumped by the heart is sent to the brain. The brain then sends the blood through an intricate network of blood vessels to where the blood is needed. Specialized blood vessels called choroid plexuses produce a protective cerebrospinal fluid. This fluid is what the brain literally floats in. A third protective measure taken by the brain is called the blood brain barrier. This barrier consists of a network of unique capillaries. These capillaries are filters for harmful chemicals carried by the blood, but do allow oxygen, water and glucose to enter the brain. THE DIFFERENT SECTIONS OF THE BRAIN The brain is divided into three main sections. The area at the front of the brain is the largest. Most of it is known as the cerebrum. It controls all of the movements that you have to think about, thought and memory.

Essay on Symbolism in Kafkas Metamorphosis -- Kafka Metamorphosis Ess

Symbolism in Franz Kafka's The Metamorphosis    Kafka uses symbolism in his short story, Metamorphosis.   He uses this technique to make the reader try and figure out what was going on in his head.   He brought out in this story many things about his life, including his father/family, love life, and his future.   He used metaphors to show his love for people in his life.   This story is autobiographical about the forces that control Franz Kafka's life.   In this paper I will explain how Kafka relates his life to the readers through the story in Metamorphosis.     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Franz Kafka had trouble at home with his father.   His father wanted him to become a lawyer, but Franz did not want to be a lawyer, he wanted to be a writer.   He went to law school against his will, because his father wanted him to go there.   He then took a high paying position with the government of Czechoslovakia in an insurance post.   In the story, Gregor?s father had very little respect for him, and Gregor had to work to pay off the family debts.   That is an example of Gregor?s father?s control over his life and Kafka?s situation was similar.   He eventually was forced to become a lawyer, whereas what Kafka wanted was a literary degree.     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Franz Kafka made his character, Gregor, transform into an insect in the story.   Nobody wants to associate themselves with an insect, which is a lowly creature, a pest, or nuisance.   This symbolizes Kafka?s depression and his poor self image.   Since his family treats the insect like an outcast, that must be how Franz felt about the treatment that his own family gave him.   It showed the control that his father put on him.   He was not allowed to leave his room.   Gregor?s parents were so afraid to take... ...   After Gregor dies, at the end of the story, his parents notice that his sister has grown up into a beautiful woman and they feel that it is time for her to get married.   This means that they used Gregor as the pawn who went out and supported them.   Now that his sister is grown up they can force her into marrying a rich man.   Then they would be well off for a long time to come.   They can now control the daughter like they did Gregor.   Grete?s new husband can support the whole family.   Once she is married, she too will then become a pawn, a victim of her parents control.  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The main theme of the story is the effect of other?s control on a person such as his relationship with his father, and how his father for controlled his life.   He realized that he was his own person when he could escape from his father?s control, even if the only escape was death.

Ephedrine and its use in Weight Loss :: Health Dieting Papers

Ephedrine and its use in Weight Loss Throughout the late nineteenth century and into the new millennium, there has been a tremendous desire among women to lose weight. Women today will do anything to achieve their belief of the perfect figure. While the â€Å"Barbie† look was at one time looked upon as unhealthy, it is now considered expected. For some reason women feel the need to keep up with Hollywood and its stars. Of course it does not help when the cover of any fashion magazine is pasted with size-zero models. After reading a magazine filled with beautiful, skinny women, people usually feel worse about the way they look, not better. So it is no surprise that the trend to lose weight has taken off in the past couple of years. And with this trend comes the increased popularity in â€Å"weight-loss† products. One can find any type of product now that claims to lose weight effectively, but at what cost to his/her health? One very controversial herb found in diet pills or food supplements is ep hedrine. Purpose of Ephedrine: While ephedrine is used to treat low blood pressure and chronic asthma, it is more popularly used in diet pills (http://www.ravehard.com/doctor/ephidra.htm). Ephedrine is a natural stimulant found in many diet pills offered today. According to the Clinical Toxicology Review, ephedrine mainly affects the cardiovascular and respiratory systems of the body. This means that it constricts blood vessels and enhances certain actions of the heart (http://www.dr-bob.org/babble/20000401/msgs/29022.html). In a clinical review; Capri-Mara Fillmore, Lisa Bartoli, Richard Bach, and Young Park 1999, they stated that ephedrine stimulates the sympathomimetic and central nervous system.

Nature’s Work (Anaylsis of a Blizzard Under Blue Sky)

Houston seems to be an extremely talented writer. It comes as no surprise that â€Å"A Blizzard under Blue Sky† is a truly compelling short story (despite the fact that it only spans four pages). The reason Houston is able to draw readers in is because she opens by introducing the underlying topic of the piece, than puts the topic on the back burner to make room for a fascinating narrative, and in the end ties the theme and the tale together without making the connection seem forced.Based on her writing structure, the three key points of â€Å"A Blizzard under Blue Sky† seem to be identifying her problems/treating depression, persevering through a near death experience, and then realizing how the two are intertwined. Houston opens the story by detailing what has got her down in life: there are bills to pay, work to be done, and uncommitted men. The combination of this, and maybe even the haze of winter, made it so that â€Å"the machine that drives you is broken† (Houston 284).In the story, the doctor suggested medication to get her functioning correctly again, but Houston was adamant that she would never fix her depression with pills. She came up with an alternative solution: winter camping. From here, Houston drops basically all discussion about her depression. As a result, the reader almost forgets why she was going camping in the first place. Instead of dwelling, she immerses herself in nature hoping to get the same results as a prescription would have achieved artificially.One quote in particular perfectly describes her healing journey through nature, â€Å"when everything in your life is uncertain, there’s nothing quite like the clarity and the precision of fresh snow and blue sky† (Houston 284). Although her initial accounts of winter camping seem jovial and fun (she even mentions that the clarity and the sereneness feels like the fourth dimension). Houston’s experience quickly takes a turn for the worse. The sun creeping behind the mountains amplifies her lack of experience and her lack of supplies.Accordingly, she is faced with a fourteen hour sleepless night where her only concern is survival (for both her and her dogs). When the sun came up on House’s snow cave the next day, she describes a feeling of pure joy and relief based on the fact that she is alive. â€Å"For the first time in many months I was happy to see a day beginning† (Houston 287). She forgot about the bills, the man, and about the depression. Life and happiness because synonymous.The final key point of â€Å"A Blizzard under Blue Sky† is the first two key points combined: experiencing nature is an excellent way to deal with depression because it allows one to have â€Å"remembered about joy†. Houston asserts that nature forces you to step outside of your problems and embrace simplicity. Her story is tangible (maybe a little extreme) example of this, but it undoubtedly encourages the readers to use the natural world as a resource to facilitate â€Å"hopefulness†. I thought â€Å"A Blizzard under Blue Sky† was a wonderful story and achieved exactly what it intended to.It provoked happiness, maybe even amazement based on the fact that upon setting out Houston was initially skeptical about the healing power of the natural world, and in turn found how revolutionary an extreme experience can be. What’s most interesting is that Houston immediately turned down anti-depressants. Most people would be thrilled at the prospect of a pill filling the void in their lives. Pam Houston had a different view, â€Å"one of the things I love most about the natural world is the way it gives you what’s good for you even if you don’t know it at the time† (Houston 284).The important thing to note here is that she did not know how nature would heal her, but she had an unwavering faith that it would even in extremely harsh conditions. Prior to reading this story, my experiences with nature have not been all that rewarding; I have never had a life changing experience as a direct result of the natural world. Houston helped me to identify why I have never stumbled upon such an organic change before. While she experienced joy by letting go of everything but the prospect of life, I have always gone into the environment with expectations and goals. I intend to change this.In the terms of the big picture, this story ties directly with all her other writings I have read in my free time (Cowboys are my Weakness, Waltzing the Cat, Sight Hound). What we can gather from this story, is that nature is a powerful tool for contemplation, introspection, and healing. It is no coincidence that nature retreats are popular and powerful experiences. One can undoubtedly experience God, and do some meaningful soul searching while experiencing God’s creation first hand. I think that this piece of literature is getting at a very important point: emotio nal fluctuations are inevitable but they don’t have to be debilitating.In her story, Houston is going through a very difficult time, and her problems are very universal: love, work, and money. The natural journey that she consequently details prove that sorrow is curable (medication is not needed). In terms of my life, I intend to take the lessons taught by Houston and apply them to my life. With that being said, I don’t have the time to go camping on a regular basis, nor do I have the desire to, but I will seize any opportunity I can to expand my natural boundaries.This might include exploring a national park on a weekend instead of going to a movie, or it might mean vacationing to the wilderness of Utah instead of defaulting back to the same beaches I have always gone to. Whatever my wilderness emersion ends up being, rest assured that I will go out of my way to seize it. Maybe I will experience a life or death situation and come out with a new found conception of jo y, but even if I don’t, I will soak up whatever nature has to offer me.

Corporate Strategy †Zara Essay

The core fantasy of Zaras profession model is they dole emerge medium quality forge attire at low-cost prices, and vertical consolidation and quick-response is key to Zaras line of reasoning model. through with(predicate) the entire work on of Zaras business system projecting, sourcing and manufacturing, distri stillion and retailing, they presented four-spot ingrained success factors short cycle condemnation, teentsy batches per proceeds, extensive variety of product any season and heavy investment in selective information and communication technology. These four elements ar involved in every looking at of the business.Zaras Business Model Zaras business model can be broken implement into three staple fiber components imagination, capabilities, and value drivers. Zaras fundamental archetype is to maintain purpose, toil, and diffusion actes that will change Zara to respond quickly to shifts in consumer entreats. Jose maria Castellano, CEO of Inditex stat ed that the fashion gentlemans gentleman is in constant flux and is set not by add but by customer demand. We need to die consumers what they want, and if I go to South the States or Asia to make clothes, I precisely cant move solid enough.This highlights the importance of this quick response cartridge holder to Zaras operations. Capabilities of Zara, or the required resources necessary to exploit the opportunities and execute this conceptual system, ar numerous for Zara. Zara maintains tight control everywhere their production processes keeping design and manufacturing in-house or with some strategicalal partnerships located near plate. Currently, Zara maintains 80% of its production processes in europium, 50% in Spain which is very close to La Coruna headquarters.They have strategic agreements with local manufacturers that contain timely delivery and service. Through these strategic partnerships and the benefits brought by this proximity of manufacturing and opera tional processes, Zara maintains the flexibility necessary to design and make up all over 12000 new items annually. This capability allows Zara to achieve their outline of expedited response to consumer demand. Competitive Advantage unsounded to Zaras success is their commitment to rapid response in customer trends in fashion, producing clothing often and with short sprightliness spans (10 wears).Their commitment to this goal and the capabilities that they have true to achieve it, have fork upd significant private-enterprise(a) advantage to Zara especially in the atomic design 18as of product using, strategic partnerships and cost of production, advertising and grocery storeing, and information technology infrastructure. The efficiencies and processes developed in these four functions differ significantly from their competitors and stand out in providing additional value and gainfulness to Zara. Product DevelopmentZaras fantastic access code to product development is implemental to their success. Zara gives store managers significant autonomy in some(prenominal) determining the products to display in their stores and which to place on sale, and relaying market inquiry and store trends back to their headquarters in La Coruna. At headquarters at that place be teams of commercials who take this information into chronicle to design and put inively plan and get down all of Zaras products. Zara maintains a design team of 200 people, all of which produce approximately 12,000 new styles per year for Zara.The process of obtaining market information and relaying it to design and production teams expedites product development by trim down the throughput time of a product to 3-4 weeks from design to distribution. This process is very different from its competitors. legion(predicate) competitors rely on a microscopic elite design team that plans both design and production needs wellhead in advance. Stores have little autonomy in deciding which products to display or put on sale because Headquarters plans accordingly and ships quantities as forecasted. Zaras fixedness to market in product development exceeds the capabilities of its competitors.This in itself shows additional value to stakeholders, customers, and stores in producing quality clothing at affordable prices . Zaras product development capabilities are essential to Zaras business strategy and future success. Strategic Partnerships and Cost of outturn In comparison to competitors, Zaras business strategy, in regards to strategic partnerships and cost of production, provide for a strategic emulous advantage. Zara, contrasted its competitors such as Gap, Benetton, and H&M, does not use Asiatic outsourcing.Eighty percent of Zaras materials are manufactured in Europe, with 50% made in Zara controlled facilities in the Galicia region of Spain near headquarters. Most of Zaras competitors have 100% outsourcing to cheap Asian countries. Though the cost of product ion in Spain is 17-20% more expensive than Asia, Zara does have a competitive advantage over its competitors in regards to operations. The local strategic partnerships that Zara maintains with manufacturers in Europe allow for a product throughput time of 3-4 weeks from conception to distribution.To make this happen, the company designs and cuts its cloth in-house and it acquires fabrics in only four act upon to keep costs low. The proximity of these suppliers gives Zara heavy(p) flexibility in adapting their product lines establish on up to date market trends and consumer behaviour. It also decreases costs of holding inventory. Zaras competitors, through outsourcing to Asian countries such as China, sacrifice the benefits of proximity for low lug and production costs.Though there is a cost advantage in their approach in regards to labour, the lack of flexibility in changing orders based on received trends hinders their operational efficiencies. Inventory costs are higher for c ompetitors because orders are placed for a whole season well in advance and then held in distribution facilities until periodic shipment to stores. This proximity effect and the flexibility that it gives Zara is fundamental to their basic concept to respond quickly to shifts in consumer demand and has provided them with a competitive edge in comparison to their peers.The striking thing is that Zara has lay out differences that matter to customers and differentiated itself from its competitors by do key activities in its supply train differently. It is this that sets challenges for competitors because they will not find it easy to imitate or equal Zaras pose and it is this feat that has given Zara sustainable competitive eminence and positioning. Through a clear reduce and vision, Zara has tapped into the power of fashion. It has shortened conventional supply chain response from 5-7 month down to 2-2? onths and their customers are eagerly awaiting adjacent weekstake note, no t next seasons new fashion Zara maintains a strong relationship with their contractors and suppliers cover them as part of the company. Small and back up shipments keep product inventories fresh and hardlycompelling customers to frequent the store in search of whats new and to demoralize now because it will be bygone tomorrow. To successfully react to consumers demands, design decisions are delayed as long as possible.In todays competitive environment, Zara has shown that fine tuning the supply chain is no longer a strategic tool, but a necessity. It has shown that supply chain management can be managed provide sustainable competitive differentiation and positioning on the one hand and profit throughput, reduce inventories and operating expenses on the other. Decision-making is encourage and bad decisions are not disadvantageously punished. Designers are trained to limit the number of reviews and changes, speeding up the development process and minimizing the number of sample s made.