Penn Foster Exam 028004 Essay

Paragraph 1 I understand that you are currently seeking to hire a receptionist at your ACT-1, Los Angeles location and I am highly interested. I know that the person for this position is responsible for receiving and greeting any visitors/clients, answering phone calls, taking and delivering messages and sorting and handing out mail. I am more than capable of doing all of that. Ever since I was a child, I was recognized for the effort I put into every piece of work. Growing up, I knew that I wanted to end up in a place where my hard work is appreciated. While researching your company, I instantly knew this was the place for me. I am confident, hard working and reliable. I am positive that I meet all requirements and I know, I could make a valuable contribution to your company. Paragraph 2 My boss, Mrs. George, has a position available for an assistant here at ANS Inc. and I believe this would be an excellent job opportunity for you. You are everything that Mrs. George is looking for in an assistant.You’re excellent at multi-tasking, an independent worker, extremely organized and not to forget, your great written and verbal communication skills. You won’t have to work weekends, this is a well paid position.You will no longer have to work double or have to worry about making ends meet. I really think you should apply for this position. I understand that you don’t have this type of experience but it give it some thought, cousin. The ad for this position will be put up soon on the company web site. If you are interested, give me a call so I can put in a good word for you.

Bradbury’s the Sound of Thunder and Skurzynski’s Nethergrave

English Critical Essay Bradbury’s  The Sound of Thunder  and Skurzynski’s  Nethergrave  are both intriguing science fiction stories. Both stories are about technology changing the life of an individual. In the the story Nethergrave, a boy name Jeremy chooses a virtual world over the real world where he feels embarrassed, uncomfortable, and alone. In the story A Sound of Thunder, the main character, Eckels, faces severe consequences due to a mistake that he makes when going back in time. Nevertheless, both characters’ personality is pretty similar in some ways both being somewhat cowardly.Both are about the effect technology can have on the world. I honestly felt that Bradbury’s story was more interesting than Skurzynski’s story. I found that the slightest thing in the past may change the future massively. In the story, Eckels uses a new invention, a time machine. Then he decided to go back to the time when dinosaurs were alive. While he was there, that triggered terrible consequences. Eckels’ death in the end wasn’t very surprising. The mistake seemed very small at the time, but had a massive effect on the outcome of the present-day world.Although Skurzynski’s story was very relatable towards others, I still think Bradbury’s story was better. Nethergrave  was about a boy named Jeremy, making a decision of staying in a world he wasn’t happy in or to leave and enter a whole new world in which he was promised never to be alone or hurt. The idea of a boy feeling awkward in the real world, then looking into what appears to be a better world just isn’t what I find interesting. I have sometimes felt awkward and embarrassed in this world, though I do not think that I would want to enter a virtual world.Throughout the story, I never felt as though I liked or related to Jeremy’s character. Both of the stories show how technology can change a person’s life for better or fo r worse. Technology can be very useful but it can also cause destruction. In science fiction plots, often results in a negative effect. Technology can be both destructive and useful, but in these stories, they both have negative outcomes. As in Skurzynski’s story, Jeremy was introduced to a new virtual world, which resulted in Jeremy ending his life on earth. In Bradbury’s story, the time machine ended up changing the present world.

Feasibility Marketing Plan – Lumber Business

MARKETING PLAN OF MADERA SAN JOSE Marketing Tools Madera San Jose, from the name itself, will offer wood products specifically hardwoods or lumber that would be further used for production of different products such as wood furniture, residential or commercial structures, and etc. Madera is the Spanish word for â€Å"wood†. Madera San Jose’s hardwood products will be expounded on in the next part of the study – the marketing plan of the proposed business. This part of the feasibility study determines the different types marketing programs prevalent in the lumber industry that can help the Madera.Given that the proposed business is a medium-scale lumber business in the province of Pampanga, the province of Muebles San Jose and also the proposed province for the location of Madera San Jose, the group gathered few and simple but still effective marketing programs that are implemented by owners there to make their business known. They can also be considered as more of marketing tools. Firstly, the bu sinesses give free merchandise such as calendars, face towels and shirts. These materials bear the logo or name of the business as well as its location.Mostly the merchandise is given to both potential and loyal patrons for them to maintain and spread awareness of the business. This practice has been done not just in Pampanga but in other places, too, and not just by lumber business owners but by other business owners, too. Except for the calendars, that are given just once a year, other merchandises are given depending on the owners disposal or whenever the owners want to, and how frequently they want to. It is proven effective because most businesses that have done it are the long-running ones compared to others that have not.The costs associated with these merchandises are as follows: Merchandise| Price & Quantity| Calendars| Php 10. 00 per 1 pc. for 30 pcs. (in a bulk)| Face towel| Php 15. 00 per 1 pc. for pcs. (in a bulk)| Shirts| Php 80. 00 per 1 pc. for 100 pcs. (in a bulk)| Secondly, businesses in Pampanga sponsor basketball teams in town leagues. Lumber businesses there have done it, too. In exchange, their logos are seen on the basketball players’ jerseys. Basketball leagues are held more than once annually, sometimes at very frequent intervals. In these events, usually many people come to watch.Aside from basketball jerseys, there are also banners portraying the businesses’ logos and locations. These are seen by owners as opportunities for the business to be recognized so they sponsor. Lumber businesses in Pampanga have done so, too. In Pampanga, the total cost for sponsoring a team is Php 10,000. 00. Following is the breakdown of said amount that will be paid in case Madera sponsors a basketball team. Expenses| Price| Basketball jerseys| Php7,200. 00 (Php 600. 00 x 12 jersey sets)| Banners or Posters| Php 2,000. 00 | Miscellaneous| Php 800. 00|The third and the last marketing tool used by most business owners in the area as well as gi ving one peso discounts. This practice has long been used by business owners – from large department stores to local lumber business owners. The practice gives customers the mentality that they get to save more while at the same time, not affecting much the costs of incurred by the business for that certain item – considering that there were mark-ups added. Marketing Mix (4 Ps) The marketing plan mainly elaborates on the 4 Ps of a business: the Product, Place, Price, and Promotion.These 4 Ps are also considered the â€Å"marketing mix† of the business that determine what the business has to offer and what are the channels for this offer to reach the consumers. In this part of the study, the said principles are expounded on in the context of Madera San Jose. Product Usually, the first principle of the 4 Ps tackled in marketing plans is the Product. Madera San Jose will offer lumber – to be specific, hardwood products. In the simplest sense, lumber is †Å"wood in any stage from the time it is cut from a tree through its use in construction or paper,† (What is Lumber Homepage, 2013).Lumber is cut from a tree through a process called felling. After it is cut and shipped, it is supplied either â€Å"rough† or â€Å"finished†. Finished lumber is primarily used in the construction industry. Most finished lumber is cut from softwood trees such as pine, fir, or cedar. Some rough lumber includes hardwoods for use in high-grade wood floors (What is Lumber Homepage, 2013). Rough lumber is raw and uncut to standardized measurements. It is used for furniture or specialty manufacturing where custom cutting and shaping is required.Given that Muebles San Jose concentrates on furniture making – custom-made or otherwise – Madera San Jose will mainly sell rough lumber in the form of hardwoods. The hardwood lumber products to be offered by Madera are: Lauan, Yakal, Teak, Gmelina, Malabuaya, Narra, Mahogany, Apitong, and Antipolo. Like the competitors, Top Lumber and Angeles LCM Construction Supply, Madera San Jose will get most of its woods from the suppliers in Tarlac. Below are the illustrations of the different hardwood products to be sold by Madera San Jose. Lauan YakalTeak Gmelina MalabuayaNarraMahoganyApitongAntipolo These lumber products, as mentioned, are to be processed further for production of more products such as trimmings for structures and more especially, furniture. Place The second P stands for Place. Madera San Jose’s wood warehouse and store itself is to be established in Angeles City, Pampanga. Pampanga is the home of Muebles San Jose. However, be that as it is, Muebles is in Mabalacat, not Angeles City. Angeles City was chosen due to its close proximity to Mabalacat – Mabalacat borders Angeles City in the latter’s northern part.Secondly, it is considered as a first-class highly urbanized city in the country, with its numerous residential areas as well a s commercial ones such as restaturants, malls, universities and even tourist spots such as ancestral mansions and houses. These structures require a lot of wood – both for the building itself as well as the furniture. Since the site is a highly industrial part of Pampanga, it is accessible to its suppliers from both Tarlac and Manila; MARSSE Timber Suppliers, Tarlac and Mango and Timber Plantation, Manila – the latter’s office is located in Taguig.Each supplier supplies 3,000 board feet of wood monthly. The exact location of Madera San Jose in Angeles City will be in Brgy. Pandan. The proposed business will actually be located at Pandan Road, Brgy. Pandan, Angeles City, Pampanga. There are about nine puroks situated in Barangay Pandan. These are: Old Pandan, Land Tenure, San Ignacio Subdivision, Springside Subdivision, Citicenter A, Citicenter B, Magalang Avenue Extension, Jaovil Compound, and Saint Ignatius Subdivision.There are also several establishments â₠¬â€œ furniture shops, schools (public and private), barangay hall (of Pandan and of other nearby barangays) – that are relevant to the business. The exact location where the proposed business will be launched is noticeably located on a main road and is situated in a commercial-residential area. This is intended such that the business will be highly accessible to the chance buyers and to the greater market, specifically businesses within the vicinity and residents living in the area, who may have probably become the clients of Madera San Jose.The lot measures 300sq. m. and the lumber business is expected to occupy 280sq. m. Originally, the location was a bare land. It was acquired it years before by Mr. Manabat for the purpose of expanding his first business. Price The price for the lumber of Madera San Jose was also gathered from the standard prices of woods per board foot in Pampanga. Following are the prices: Hardwood| Price Per Board Foot| Lauan| Php30. 00| Yakal| Php40. 0 0| Teak| Php60. 00| Gmelina| Php26. 00| Malabuaya| Php30. 00| Narra| Php85. 00|Mahogany| Php30. 00| Apitong| Php30. 00| Antipolo| Php35. 00| One will notice that these prices are also the same as those of the competitors’. This is because of the fact that the owners want to use competition-based pricing. Competition-based pricing is the strategy used when a firm uses the competitor’s prices as benchmarks. In Madera’s case, since there are only two (2) competitors nearby that also offer hardwood lumber; Top Lumber and Angeles LCM Construction Supply, and both have the same prices, Madera used their prices.Same prices are used to get more people from the competitors’ pool of patrons, and no decreases are made either, so that Madera an establish stability since the business is new and so that there will be allowance for possible future discounts. Also, other lumber dealers sell at the same prices and the customers are used to the standard. Since Madera San J ose will be a new addition, the business will also use the same prices to establish its place in the market. Promotion Promotional tools used by lumber businesses in Pampanga have been mentioned already in the first part of this portion of the study.Going back, the three tools are: 1) giving of printed merchandise, 2) sponsorship of basketball leagues, and 3) one-peso discounts. `The group recommends Madera San Jose to use the first and second tools – printed merchandise and basketball league sponsorships. Giving printed merchandise such as calendars, face towel, and shirts is not something new in the small to medium industries but they are helpful in spreading knowledge of the business. For instance, buildings – whether private of public, large or small – that display the calendars will help in making the new business known.It is also an ideal way because calendars are displayed and looked at all year round. As for shirts and towels, people who wear or use them are mostly people from the manual labor sector. These people tend to move and work a lot in the local community. Without spreading information on the business verbally, these people â€Å"display† the business just by moving around. It will help that the printed information not just contains the business logo and name but the business address as well. The second tool is the team sponsorship in basketball leagues.As mentioned, basketball leagues are hugely-crowded events. Some people from other towns even visit to watch. In the basketball leagues, aside from banners that can be displayed around the court, Madera can gain exposure through basketball jerseys with the business logo printed on them. Aside from having huge crowds to whom Madera can be exposed to, basketball leagues are held more than once a year – even more frequently if the area has many playing teams. Madera will have more exposure time. One might wonder why the third tool was not applied.This tool is the one-peso discount strategy. It would be good for the business. However, it is also deemed ideal if this strategy will not be applied in at present – when the business is still new in the industry. Customers should be accustomed first with the actual prices before being given the discounts. Marketing Plan Conclusion In sum, unlike other industries, the lumber businesses in Pampanga do not highly focus on marketing. If one will notice in this study, this marketing part does not comprise much information compared to other aspects such as the operational plan and financials.This is so because first and foremost, the lumber industry in Pampanga mainly relies on word-of-mouth as the major marketing agenda. Owners, aside from giving free merchandise and some basketball leagues do not use famous media such as the television, radios and magazines. Some even do not have a marketing strategy at all, or if they do, they do not practice it for the long run. They just rely on word-of-mout h. In short, the most reliable and fool-proof way of gaining more customers for Madera San Jose is based on its products and how these will make the customers satisfied enough to spread information about them.

In a continuous esssay of not more than 1,000 words, analyse this Essay

In a continuous esssay of not more than 1,000 words, analyse this passage, discussing how narrative voice and dialogue are impor - Essay Example The aforementioned piece is a flawless demonstration of Direct Narrative. One can say so, as in this case, the viewpoint presented to the reader is that of a heterodiegetic narrator, who is not a part of the story, and has complete knowledge of all the happenings in the story. As a result, it gives the reader an opportunity to analyse the situation in the story using a wide pool of thoughts. Charlotte did not stay much longer, and Elizabeth was then left to reflect on what she had heard. It was a long time before she became at all reconciled to the idea of so unsuitable a match. The strangeness of Mr. Collins making two offers of marriage within three days was nothing in comparison of his being now accepted. She had always felt that Charlotte's opinion of matrimony was not exactly like her own, but she could not have supposed it possible that when called into action, she would have sacrificed every better feeling to worldly advantage. Charlotte the wife of Mr. Collins was a most humi liating picture! (Paragraph 4) This fragment very gracefully mingles both Direct and Focalised narrative. The first line has been laid out in pure Direct narrative, with the narrator informing the reader about the departure of Charlotte and the beginning of Elizabeth's train of thoughts. However, from the second line onwards, the narrative shifts to being Focalised, with Elizabeth being the focaliser. The text from here onwards, gives the reader a portrayal of the happening (Charlotte's acceptance of Mr. Collins marriage proposal), solely through Elizabeth's point of view. In a way, the reader 'sees' what Elizabeth sees, and is made to think at the same wavelength as Elizabeth. It ignores all the other aspects of the situation, thus narrowing the scope of understanding and reflection of the reader. However, it also gives the reader the liberty to gather a deep understanding of Elizabeth's character. Moreover, the passage also lays down a brilliant understanding of Free Indirect Spee ch and Dialogue. But Elizabeth had not recollected herself, and making a strong effort for it, was able to assure her with tolerable firmness that the prospect of their relationship was highly grateful to her, and that she wished her all imaginable happiness. (Paragraph 3) The underlined sentences in the above paragraph are a perfect literary example of Free Indirect Speech. It models indirect speech to a certain extent, the only difference being that in this form, there is no introductory clause. For example, in the above sentence, one does not see an expression like 'she said' or 'she exclaimed', which are characteristics of indirect speech. Apart from Free Indirect Speech, the passage also underlines the importance and definitive nature of Dialogue. The steady countenance which Miss Lucas had commanded in telling her story, gave way to a momentary confusion here on receiving so direct a reproach; though, as it was no more than she expected, she soon regained her composure, and ca lmly replied, ?Why should you be surprised, my dear Eliza? Do you think it incredible that Mr. Collins should be able to procure any woman's good opinion, because he was not so happy as to succeed with you?" (Paragraph 2) The sentences within double quotes are Dialogues, said by Charlotte to Elizabeth. Whereas Free Indirect Speech gives the reader an overview of the situation at hand,

Assignment Example | Topics and Well Written Essays - 2250 words - 3

Assignment Example Following the theory, Walmart Company is fully unethical. It was because of the win lose situation they created. The company becomes the winners and customers were the losers. The health of the consumers got placed at risk due to the company selling food that could make the consumers sick (Spotts 76). It demonstrated that the company did not respect the consumers or care for their welfare. The company did not make the efforts of ensuring the happiness of consumers. They only cared for their own happiness. The company also made themselves unhappy due to cheating on their customers and taking their money. The theory developed by kant also indicates that the company is unethical in a more different ration. The customers lacked a chance of making any decision. There was no information issued to them on the products they were buying as the company held the information. They also gave them false information so that they can have their money. The denial of information hindered the customers from making their own decisions on the product. The most likely decision they would have made is not to consume their products. It was due to the health hazards associated with the meat. The theory of kant also indicates that the company should not consider themselves above the law and also rules. They fully understood the illegal actions they had associated themselves with and were not willing to accept the consequences. The interpretation of the word courage can get done in several ways. The Walmart company did not have to cater or even compensate to the customers they cheated which they did not. The courage to offer an apology or even compensation was not a step towards the right direction (Spotts 26). The company possessed unreasonable desires, therefore, they lied to their customers in the efforts of obtaining happiness and also profit. On the case justice, it was also not present. The company did have fair practices

Investments & Returns Essay Example | Topics and Well Written Essays - 1000 words

Investments & Returns - Essay Example Systematic risk, in finance, also known as non-controllable or non-diversifiable risk is the uncertainty in financial returns caused by factors that are beyond the control of an entity. These factors are macro-economic in nature. This type of risk cannot be managed by the organizations. They are the interest rate risk, the inflationary risk, the exchange risk and the market risk. The interest rate risk is caused by the movements in the cost of debt, thereby causing a decline or an increase in the interest payment on debt finance. An increase in the interest rate is unfavourable to the borrowers who will dig deeper into their pockets in order to meet the cost of debt. On the other hand, an increase in the interest rate is favourable to the lender due to an increase in the return. The opposite of the statement is true (Akrani, 2012). The inflationary risk is caused by a future increase or decrease in the commodity prices due to a deficit or a surplus in the supply level. An increase in the inflation reduces the real value of the local currency while a decrease in the inflation increases the real value of the local currency. A decline in the value of the local currency reduces the value of organizations, whereas, an increase in the value of the local currency increases the value of organizations. The exchange rate risk is caused by the volatility of the exchange rate. The exchange rate is the price of a local currency against that of the foreign currency. Companies that have subsidiaries in the internal market lose/gain when converting foreign currency to local currency when the exchange rate decreases/increases (Akrani, 2012). A decrease in the exchange rate means that less local currency is given up for the foreign the foreign currency. On the other hand, an increase in the exchange rate means that more local currency is given up for the foreign currency. The market risk is caused by the rise and fall in the prices of shares and other securities in the

Islamic religion Essay Example | Topics and Well Written Essays - 250 words

Islamic religion - Essay Example Moreover, Islam, like Christianity and Judaism is a monotheistic faith; meaning that Muslims believe in but one God – Allah. A secondary and equally important factor of being a Muslim is the belief in and attribution of Mohammed as the Prophet of Allah. Muslims believe that the Prophet Mohammed is the last messenger of God’s truth on earth. In this way, all of the other representations that have come before, Noah, Moses, and even Jesus, are subject to the ultimate revelations that Mohammed as revealed through the Angel Gabriel. To be a Muslim requires one to follow the laws and directives lain out by Mohammed’s followers within the Holy Qur’an; Islam’s most holy text. Moreover, feasts should be celebrated, purity should be retained, apostasy abhorred, and refusal of certain unclean meats. Besides the following of the letter of the law laid out in the Qur’an it is also required that an individual, if they are physically or financially able must make at least one pilgrimage to Mecca within their

Romantic Love Is a Poor Basis for Marriage Essay

Romantic Love Is a Poor Basis for Marriage - Essay Example Many people have claimed to have fallen in love, which then lead to marriages after a short time. Romantic love grows between people who know each other well, meaning that the people have to be increasingly in close contact with one another (Putte and Matthijs, 580). Love is thus taken as a bond that unites a couple in marriages, and the fuel that is supposedly making relationships in marriages to thrive. However, in closer examination of marriages in the society today, the aspect of love in marriages is blurred and in most cases hard to determine. This is because there are increasing rates of divorces and separations among young married couples, with others going to the extent of taking their partner’s life. Considering that romantic love involves close interaction and coherence in mutual understanding between the partners, these trends clearly portray that romantic love is a poor basis in marriages. Determining whether romantic love can thrive over time requires understandin g of the basic relationships, principles and their applications. This means that partners have to have a clear perception concerning such love in the short and long term basis and not depend on perceptions of others or higher expectations.â€Å"Love is an abstract construct that has been debated, discussed, mused and speculated over many years† (July, 1). ... These social models indicate that women tend to seek men with financial resources and men tend to seek physically attractive women (July, 3). In these social constructs, the issue of romantic love does not suffice in any event, and the issue of convenience takes lead in determining marriage partners. Securing the future the financial future of the family seems to be the priority in many women while men seek for the pride of having an attractive woman. These are issues of compatibility that have to be considered in marriages in addition to the romantic love. Infatuation that might be related to romantic love in most cases has been confused with love, and as many people get into marriages, infatuation is in most cases to blame. Mponda (16) in outlining the creation story in the book of Genesis notes that when men and women meet the opposite sex, there is a tendency to get excited and think that they have fallen in love. They will therefore start plans of staying together believing that they are in love. Mponda (17) defines infatuation as â€Å"having an intense but short lived passion for somebody.† Passion in this case is an intense enthusiasm for something. Since the passion is short lived, such marriages end up in divorces at an early stage. The close interaction mostly among the young people in most cases results to infatuation. Putte and Matthijs (580) compare this to the short romantic outbursts that are involved in romantic relationships. Social groups in addition accelerate these trends. However as the passion fades away, such romantic outbursts are temporary and fade away with time and thus cannot be best indicators in marriage. Glaser and Malarkey (176) argue that poor communication is responsible for

MSC MANAGING MAJOR PROJECTS AND PROGRAMMES Personal Statement

MSC MANAGING MAJOR PROJECTS AND PROGRAMMES - Personal Statement Example want my future to be, I have decided to apply for admission to Middlesex University - the National Centre for Project Management, a well-known, established university in London and to be specifically part of its MSC Managing Major Projects and Programmes course. My decision to specialize in this course was based on its close relation to my present job requirements, existing acquired skills and experiences. I have also arrived at this decision considering the recent business trends emerging like the widespread of project management base work around the globe, the wider coverage of project management, the thin layer of available project managers against the soaring demand for them and the issue of a popular published international corporate magazine which rated â€Å"project management† as the number one career choice of this millennium. I have chosen Middlesex university amongst the rest because of what it offers, its school facilities, quality of mentors and most importantly, its impressive distinguished achievements like being the first university in London to be awarded four Queen’s Anniversary Prizes in four different categories. It also received positive feedback from the Quality Assurance Agency for maintaining globally competitive academic standards to its students. These achievements, brought to the attention of the public, have drawn more enrolees including myself. It will be my honour and pleasure to learn the needed knowledge and skills with the world‘s greatest mentors and at the same time exchange with and compete against the best students in the world. I am confident that these two factors will provide me with lifelong benefits. Only by driving myself into this highly competitive academic arena will I be sure that my outstanding potentials can be elicited into the fullest, and therefore, enable me to further develop my courage and stance to face challenges, enhance my endurance, and improve my analytical thinking. My motivation for charting my

Ana Code of Ethics Essay Example for Free

Ana Code of Ethics Essay The ANA code of ethics as described in the book of Conceptual Foundations as: ANAs Code of Ethics for Nurses, 2001 * 1. The nurse, in all professional relationships, practices with compassion and respect for the inherent dignity, worth, and uniqueness of every individual, unrestricted by considerations of social or economic status, personal attributes, or the nature of health problems. * 2. The nurses primary commitment is to the person, whether an individual, family, group, or community. * 3. The nurse promotes, advocates for, and strives to protect the health, safety, and rights of the patient. * 4. The nurse is responsible and accountable for individual nursing practice and determines the appropriate delegation of tasks consistent with the nurses obligation to provide optimum patient care. * 5. The nurse owes the same duties to self as to others, including the responsibility to preserve integrity and safety, to maintain competence, and to continue personal and professional growth. * 6. The nurse participates in establishing, maintaining, and improving health care environments and conditions of employment conducive to the provision of quality health care and consistent with the values of the profession through individual and collective action. * 7. The nurse participates in the advancement of the profession through contributions to practice, education, administration, and knowledge development. * 8. The nurse collaborates with other health professionals and the public in promoting community, national, and international efforts to meet health needs. * 9. The profession of nursing, as represented by associations and their members, is responsible for articulating nursing values, for maintaining the integrity of the profession and its practice, and for shaping social policy. (Ceasia, Friberg p. 285) Description In the broadest sense, ethics are the principles that guide an individual, group, or profession in conduct. Although nurses do make independent decisions regarding patient care, they are still responsible to the profession as a whole in how those decisions are made. From the earliest concept of nursing, the proper behavior and conduct of a nurse was closely scrutinized. Florence Nightingale wrote of specific issues of conduct and moral behavior. The Nightingale pledge that was composed in 1893 by nursing instructor Lystra Gretter includes the vow to abstain from whatever is deleterious and mischievous and will not take or knowingly administer any harmful drug. Over the last 100 years, nursing has evolved into a very complex professional field. Nurses are now faced with life and death decisions, sometimes on an hourly basis. Medical care has advanced to the point that new technology with its potential benefit or harm to a patient changes constantly. Although the private conduct of a nurse is no longer controlled by the employer, the effects of that lifestyle on the nurses ability to think and respond to patients in different situations. The study of ethics is actually a branch of philosophy. The word ethics is derived from the Greek term ethos which means customs, habitual usage, conduct, and character. The study of ethics has led to the identification of basic concepts including relation of basic concepts including rights, autonomy, beneficence, nonmaleficence, justice, and fidelity. Understanding these concepts assists the nurse with making decisions during difficult situations. Webster defines a right as something to which one has a just claim or the power or privilege to which one is justly entitled. Patient rights have evolved to the point that federal legislation has been passed in the United States to protect a patients individual rights. A Patients Bill of Rights was initially developed by the American Hospital Association in 1973 and revised in1992. All hospitals are now required by law to inform patients of these rights upon admission to the hospital. Autonomy comes from the Latin auto meaning self and nomy which means control. Individuals must be given the rights to assist in their own decision making. This ethical concept has led to the need for informed consent. Sometimes patients religious or cultural beliefs lead them to make decisions regarding their own care that may seem controversial or even dangerous. However, the concept of autonomy gives them the right to make those decisions unless they are mentally impaired. Beneficence means to do good, not harm, to other people. Nonmaleficence is the concept of preventing intentional harm. Both of these ethical concepts relate directly to patient care. In the American Nurses Association Code for Nurses, there is a specific charge to protect patients by specifying that nurses should report unsafe, illegal, or unethical practices by any person. Nurses are often faced with making decisions about extending life with technology, which might not be in the best interest of the patient. Often the concept of weighing potential benefit to the patient against potential harm is used in making these difficult decisions, along with the patients own stated wishes. The word justice is closely tied with the legal system. However, the word refers to the obligation to be fair to all people. In 2001, healthcare economics have hospitals and other providers stretching their resources to their limits. Economic decisions about healthcare resources have to be made based on the number of patients who would benefit. The potential of rationing care to the frail elderly, poor, and disabled creates an ethical dilemma that is sure to become even more complicated in the future. Fidelity refers to the concept of keeping a commitment. Although the word is more closely used to describe a marital relationship, fidelity is the concept of accountability. What is the nurses responsibility to his or her patient, employer, society, or government? Privacy and confidentiality are concepts that could be challenged under the concept of fidelity. If a nurse is aware of another healthcare giver who is impaired, but the circumstances are private or confidential, how is the conflict resolved? As a general rule, nurses are employed by a hospital, clinic, or private practice. Decisions that are made about patient care are not totally independent. Every decision creates a ripple effect and touches someone else in the health care field. One of the purposes of a code of ethics is to help nurses keep perspective and a balanced view regarding decisions. An example of violation of code of ethics is an 18yr old girl comes into the emergency room with her mother and has abdominal pain. The doctor or nurse does not ask the patient if it is ok for the mother to know the entire patient’s information since she is 18 yrs. old. The mother is under the impression that her daughter is not sexually active. When the urinalysis comes back the nurse explains that they are going to do further tests but the abdominal pain is probably due to her being pregnant. The mother is in the room when the news is told violating the patient’s rights. The professional nursing practices involves working towards the outcomes of safe, quality, evidence based practice and confidentiality. (Styles, A 2008). Overall, I think all nurses try to do the right thing on a daily basis and their decisions are based on a reflection of consequences and moral principles. The ANA helps professional nursing by supporting nurses and providing a framework within which nurses can make ethical judgments and decisions to fulfill their daily responsibilities. References: Styles, A. (2008) The professional nursing practice. http://www.buzzle.com/articles/ethics-in-nursing-jobs-and-profession.html Ceasia, Friberg. (2011) The ANA code of ethics. Conceptual Foundations p.285

Marketing Essays Mars Bar Marketing

Marketing Essays Mars Bar Marketing Mars Bar Marketing The Marketing Strategy for the Mars Bar in the United Kingdom In this report a strategic analysis will be made of a Mar’s Bar (as opposed to the Brand) I think you have this wrong – a Mars Bar is a mix of milk, chocolate, glucose, etc! – you mean, I think, a review of Mars Bar as a product, rather than a review of the Mars Company as a whole. Mars is both an item of confectionary and a leading global brand recognisable almost anywhere in the world. NO, Mars is a global confectionary brand and the Mars Bar is one of its flagship products! There will be a detailed examination of the integration between strategic aims and marketing actions. Mars strategy and relationship between its target market segments will be examined, along with its products and services offered to the different customer groups and promotional activities. The links between the external environment, (PEST, Porter), business strategy and marketing will be evaluated. A Mars’ bar is in essence chocolate-malt nougat topped with a layer of caramel and covered with milk chocolate. In the United States, it is known as the Milky Way bar. (There was a Mars bar in the United States, but it was discontinued in 2000. It was then re-launched under the new name the Snickers Almond bar.) Mars Incorporated is a family owned company that produces some of the world’s leading confectionery; food and pet care products and has a growing beverage and health nutrition businesses. Headquartered in McLean, Virginia, Mars Incorporated operates in more than 65 countries and employs more than 40,000 associates worldwide. The company’s global sales are approximately $21 billion annually. Founded in 1911, the company manufactures and markets a variety of products under many of the world’s most recognizable trademarks, including MILKYWAY ®, MM’s ®, SNICKERS ®, MARS ®, UNCLE BEN’S ® Rice, and PEDIGREE ® and WHISKAS ® pet care products. Frank Mars was born in Minnesota, USA in 1882. Due to mild polio his walking was impaired. His mother taught him to hand dip chocolate as a means to keep him entertained. Frank married in 1902 and in 1904, Forrest Mars Sr. was born, in Minnesota. Frank Mars and his second wife started making and selling butter cream candies from their third home in Washington, in 1911. This led them to renting their first candy factory, the Mars Candy factory Inc, which employed 125 staff. In 1920, Frank moved to a larger site in Minnesota, which he called nougat house. The Mar-o-bar was introduced to the candy range in 1922. With a larger site for distribution of this candy the Mar-o-bar company was launched. After three years of researching, the Milky Way candy bar was introduced and was an instant success. Sales increased and more staff were hired. In 1929 Mars incorporated, now with 200 staff, relocates from Minneapolis to Chicago. The central location of Chicago offers a better railroad access to the rest of the country. The Snickers bar is launched in 1930. Forrest Mars Snr arrives in the UK, in Slough to start his own business in 1932. The Mars confectionary business diversifies with the acquisition of the dog food business in the UK.W hen? Porter’s 5 Five Forces Analysis of Mars Bar Power of Suppliers The power of suppliers is low. As supplies are mainly commodities – cocoa, sugar, malt etc. there is low differentiation in the supplies. Therefore Mars can afford to be sensitive to the cost of supplies, and can easily switch to a more favourable supplier. The Labour force is largely non-specialised, and thus the power of the unions can be assumed to be low. This puts the employer at an advantage when it comes to negotiating the cost of labour. Forward integration by Mars’ suppliers is unlikely due to the current oligopoly in operation, where brand strength and market share of the main players would make it difficult for new entrants to achieve the high volume of sales required to return a profit. As a large multi-national corporation, Mars may be significantly bigger than some of its suppliers. This will give Mars an advantage in negotiations. Power of Buyers The power of buyers is low, but can be said to be higher than the power of suppliers. Because the price sensitivity of buyers is low – Mars bars are a relatively cheap product there is some potential for Mars to raise its prices without this having a significant impact on sales. The significant brand strength of the product makes it important to the buyer, in terms of wholesalers and retailers. Ultimately retailers need to sell Mars bars, therefore reducing their power to negotiate with Mars on price. Also there is a low threat of backward integration by buyers due to Mars’ brand strength. There has been some backward integration from supermarkets own-brand products, but this has not resulted in supermarkets being able to stop supplying the Mars bar. The low costs for buyers to switch between rival products bring some power back in their favour. Also the size of the Mars Company and the size of its suppliers (wholesalers and supermarkets) is similar – there is no clear imbalance of power between parties. Threat of new entrants The threat of new entrants is low. There are high entry costs to this market it costs a lot of money to produce and market a new competitor from scratch. The threat is more likely from existing food companies e.g. Kellogg’s cereal bars. Economies of scale are a barrier – a small profit margin (for example, just 0.5p gross profit per bar of Kit Kat [which is actually a Nestle product! – why pick this as an example?]) means that larger volumes need to be produced and sold to make a profit. This denies the opportunity for new entrants to develop their market share gradually over time. The extent of product differentiation in the market means that there is high brand recognition for the main products, which a new entrant would have to overcome. This can be considered extreme for Mars, where the brand has been used to launch additional products such as Mars ice cream, cakes and milkshakes. There may also be barriers for new entrants to channels of distribution. Retailers may be unwilling go to commit valuable shelf space to un-proven products. In addition, the existing companies may bulk-buy shelf space, thus reducing the availability to new entrants. In favour of new entrants, there are few legal barriers to entry, though the requirements relating to food hygiene are strictly enforced. The risk to a company’s reputation for failing to follow these requirements are significant e.g. the salmonella outbreak in a Cadbury’s factory in 2006(?) Also, the low profit margins per bar reduces the ability and of Mars to engage in a price war to deter new entrants. The low price sensitivity of buyers would reduce the effectiveness of such a move in any case. Threat of Substitutes The threat of substitutes is medium – relevant but not strongly significant. With the exception of multi-packs from supermarkets, the Mars bar is primarily a low cost ‘indulgence’ purchase. Therefore its possible substitutes are any items that compete for the same money i.e. the change in people’s pockets, and meet an indulgent need. These could be chewing gum, crisps, soft drinks, boiled sweets, even newspapers. The presence of substitutes will limit Mars’s ability to raise prices and generate profits. However, the relative value of all such items is low, and so it is not often likely that a potential purchaser will be put off buying a Mars Bar, because they cannot afford to buy it and, say, a newspaper. Competitive Rivalry The level of competitive rivalry in the market is medium significant but not intensive. Competition on price will be weakened by the oligopoly pattern evident in the market. This can be evidenced by parallel pricing decisions – the main competitor bars have retail prices very close to each other. The market is highly differentiated in terms of the specific products available. There are lots of different types of bars, but only Mars make a Mars bar, only Nestle make a Kit Kat etc. This has the effect of depressing competition on price, because there are no identical rivals to the product. It can be seen that competition is more intense in non-price dimensions, and specifically in the high spend on advertising. Mars uses a wide range of media to advertise and promote the Mars bar. The increasing level of product differentiation within the brand is also a reflection of competition – new flavours of familiar products are at attempt to take market share form the main rivals. The economies of scale that operate in the market means that Mars must strive to maintain and improve market share, which will impel it to compete intensely with its rivals. Mars bars must sell in considerable volumes to make a profit. PESTLE Analysis of the Mars Bar Political Nestle and Master Foods with its main brand the Mars bar (Nestle again – why are they here?) is receiving criticism for sourcing it chocolate from the West African countries like the Ivory Coast where the cocoa trade is being used to fund conflict to the tune of  £60 million a year. The Ivory Coast provides some 40% of the world’s cocoa, since 2002 it has been torn apart by civil war. The allegations are that the profit from cocoa has been directly siphoned into government funds and used to finance their conflict with the rebels. In addition the rebels extorted money directly from the industry trying to transport the cocoa through its region. Gentle pressure is being applied on Mars to identify how much of its product contains cocoa from the Ivory Coast and strive to become free from â€Å"Conflict Cocoa†. (Independent News and Media Ltd 2007) Sustainability and fair trade with regard to cocoa has become a political â€Å"hot potato† with the manufacturers of the Mars bar being criticised for employing tactics that puts cocoa farmers into virtual slavery, forcing them to turn more of their land over to production of cocoa rather than traditional arable farming and then making entire communities reliant on the cocoa market. The power of the global conglomerate can then manipulate the price of cocoa, ultimately depriving the producer of a fair price for the raw ingredient. The close association of the Mars bar as a product of the United States may cause some with a dislike of all things American to boycott the product; however there does not seem to be any evidence that this has actually occurred. Due to the global use of the product and its association through manufacture and distribution with other countries like the UK, it does not lend itself to being an exclusive American product such as is for the Hershey Bar. In the UK as in other nations where the Mars Bar is manufactured, there is some influence on the processes involved in its production by the legislative requirements of the host nation or other bodies such as the European Union. These relate in the main to food safety and trading standards legislation relating to the safety and standards that the Mars bar must meet in order to be sold to the consumer. Lately this has being more influenced by legislation that relates to advertising, such as the advertising of the product to children. Due to the nature of free market economies, free markets and the established nature of the Mars Bar with its global distribution network it is not felt that the Mars bar is overly influenced by external political factors. Economic In August last year the price of cocoa was threatening to sky rocket as large swathes of the cocoa plantations in Papua New Guinea were infested by the Asian Moth. The region produces some 17% of the world’s cocoa. An infestation of a similar nature in Indonesia in 1998 caused some  £13 million of damage. Mars were affected to such an extent that they sent out their own team to help eradicate the infestation. Mars are continuing to test a number of anti moth measures. (www.metro.co.uk 2006). The recent business decision to begin producing and using animal based rennet in the Mars bar has been disastrous. The resulting back lash from consumers in the Islamic faith, vegetarians and those with a strong social view on the use of rennet extracted from the lining of a calf’s stomach, has led to Mars making a U-turn on a business decision, apologising for its decision and giving an undertaking that they will return to producing a vegetarian product. Although this issue could be regarded as a social factor, it is in fact an issue of economics as Mars have identified the effect this decision would have on its sales (www.bbc.co.uk 2007). There has been a growth in the chocolate market, the majority of which has been with the high quality, high value products associated to some extent with the growth in disposable income across the developed world. The growth in the market has not necessarily had a positive effect on the sales of Mars due to the inexpensive and generic nature of the product. However, this inexpensive nature of the Mars Bar makes purchasing it an uncomplicated decision for consumers with no financial consequences that could lead the purchaser to regret making the original decision to purchase a Mars bar or to restrict the quantity or frequency of purchases. The largest markets for Mars are generally the more affluent and developed markets with little room for growth such as UK, USA, Canada, Australia and New Zealand. The emerging and developing markets of India and China with a combined population of nearly 2 Billion individuals is a virtually untapped market of consumers. These markets would require a unique marketing strategy as although it has great potential, the regions are not known as great consumers of chocolate. Although a US product it is not known if the markets in India and China would take to it. For many geographic areas of both countries there would be concerns about refrigeration and chocolate melting, which would limit sales areas to main cities, and maybe bigger stores? however with the present level of mutual trade and the world’s general love of all things western it may not be a cause for concern. Master foods itself is showing growth in profits with a 1.4 percentage point of market share gained up to June 2007. Social The most recent issue that has affected the Mars bar has been the disastrous business decision to introduce the use of animal rennet as an ingredient in its chocolate the resulting backlash as discussed earlier not only from those with personal and lifestyle sensibilities but also from those with a social conscience with regard to the treatment of animals This led to Master foods making a U turn on a business decision. The chocolate industry as a whole has been under a political and social spotlight as discussed earlier. Consumers are becoming more ethically aware and are questioning the practices of those associated with the production of cocoa. The industry was heavily criticised over the use of â€Å"child slave labour. Master foods along with its two rivals Nestle and Cadbury do not perform well when examined for their ethical practices. What is the relationship between master Foods and Mars? I thought that Master Foods was a subsidiary of Mars, and Mars the chocolate brand is part of Mars the parent? Mars does not even feature on the league table of those products that are deemed ethical, although it’s fair to say that the ethical names on the list are not household names, either [give some examples, then!] (www.ethiscore.org 2007) The Mars bar is not produced under a fair trade or ethical banner, thus depriving consumers of a choice. They have a choice – they can buy Green and Blacks, or do without! The market in ethical or fair-trade usually caters for the higher quality chocolates which are priced at a premium. With the continued affluent western lifestyle leading to chronic obesity and ill health there has been a drive to improve the nutritional value of food and to reduce the quantity of high fat and high sugar food groups such as chocolates in our diets. Some members of the health and nutrition lobby are looking for draconian steps to be taken against the chocolate manufacturers to reduce their influence upon diets in a similar way that steps were taken against the tobacco industry. The chocolate industry has received threats about the banning of advertisements aimed at children and at peak times and on children’s television channels. Pre-empting this, Mars has declared that they are moving away from targeting children with their product, a positive social action of their own (www.bbc.co.uk 2007). Any reduction in the use of Cocoa will ultimately affect some 26 million people around the world who are reliant upon the chocolate industry, which includes some six million cocoa farmers (www.mars.com 2007). Technological To improve cocoa production yields and to guarantee production levels for the future, Mars is investing in research to produce disease resistant cocoa trees to prevent such catastrophes such as the introduction of the disease â€Å"Witches Broom† which decimated the cocoa industry in Brazil in the 1990’s. Should cocoa supplies be affected, the manufacturer with a guaranteed supply of good quality cocoa should corner the market at the expense of its competitors (www.mars.com 2007). Legal Should the lobbyists become successful in their campaigns to restrict advertising of chocolates or force changes to reduce fat and sugar content of chocolate or to have health warnings placed upon labels then this may not be through a voluntary code but through the introduction of legislation. This may vilify chocolate and make it as socially unacceptable as cigarettes, which may have a profound effect on sales. The safe production of chocolate and how it is presented for sale is governed at present by food safety and trading standards legislation, which is enacted by both national and European legislatures. Environmental There are large quantities of waste associated with the production of chocolate which includes waste chocolate product. Over the last five years the Mars manufacturing plant in Australia has reduced the amount of waste it sends to landfill by 90%. For every 3000 tonnes of product produced every month, 220 tonnes of waste is produced. This is now fed to piglets. The animal waste is collected as fertilizer and the gases produced by the fermenting animal waste is burnt and used to generate electricity. These initiatives are reducing the costs to the business. However any positives are offset by the amount of waste that is being produced across the entire industry and at all the other Mars plants. Mars is also working to reduce the quantity of plastic in its packaging, which it has already reduced by 10% (www.mars.com 2007). Get help with your essay from our expert essay writers There was some criticism aimed at the chocolate industry accusing it of being responsible for large swathes of deforestation which occurred to make way for the cultivation of cocoa plantations. However, over a generation the cocoa plantations have become diverse ecological systems of their own. (American Association for the Advancement of Science). Pressure is also mounting on many commercial enterprises including chocolate manufacturers to publish the carbon footprint† of their product as society becomes more environmentally aware and wanting to know the affect on the environment that products they purchase have. Due to the raw ingredient coming from the far reaches of the planet and the distribution required for both ingredients and product it is expected that chocolate will have a large carbon footprint compared to the relative inexpensive and mundane nature of the product. (www.telegrapgh.co.uk 2007). Analysis of Mars Marketing Strategies Scope This is an examination of the advertising employed by Mars to Market their Mars bar product within the United Kingdom. It consists of an examination of the TV and Cinema advertising employed by Mars from 1980 to date and will identify themes in the advertising which may indicate the market segmentation strategies being employed. The Advertisements Advertisement 1: http://www.youtube.com/watch?v=GXxR9cfB9_s This advertisement which was used in the UK in 1986 features a combination of young adults and children both male and female. It emphasises the quality and good value of the product and its â€Å"goodness†. It strongly suggests that it should be part of daily consumption and shows a Mars Bar in a lunchbox. It identifies the ingredients as â€Å"milk, sugar, glucose and thick, thick chocolate† and finishes with the tagline â€Å"A Mars a day helps you work rest and play† Advertisement 2: http://www.youtube.com/watch?v=125FCPnOxNY A TV advert dated C. late 80s. It features a young woman who is an energetic young news reporter trying to impress the boss. After a series of dispiriting setbacks during the day, she pauses for a snack (of a Mars Bar) and then she gets the big break. The voiceover describes the contents of the Mars bar as â€Å"milk, glucose, milk and thick, thick chocolate† and the final tagline is â€Å"A Mars a day helps you work rest and play† The advert implies that the Mars Bar has beneficial effects in keeping high levels of energy throughout the day. Advertisement 3: http://www.youtube.com/watch?v=_5Z-utxJvqQ This TV advertisement was used by Mars in the UK in 1991. It features a well known British international athlete of the period, Peter Elliot. He is shown running in the early morning in an urban environment. He receives the admiring looks of the people he passes, which include the suggestion that he is attractive to the opposite sex. There is no voice over except at the end which lists the ingredients as â€Å"milk, glucose, malt and thick, thick chocolate in a Mars†. Mars is the revealed to be the â€Å"Official snack food of the British Olympic team†. Advertisement 4: http://www.youtube.com/watch?v=UW4SIdXR8ks This TV advertisement was used by Mars in 2006. It features a casually dressed young man who buys a Mars Bar from a vending machine in a night time urban environment. He eats it as he walks through the streets. As he walks through the streets the lights turn on as he passes implying that the energy of his presence is doing this. He passes two women who give him admiring glances implying that he is attractive to women. There is no voiceover simply the music (Blue Monday by New Order) which is â€Å"high energy†. The Tagline is â€Å"Mars gives you energy† Advertisement 5: http://www.youtube.com/watch?v=IZ_7NiAw3C8 This TV advertisement used in 2006 exploits the World Cup of that year. It features a rabid male England football support singing a song and leading an impromptu parade about his belief that England will win the World Cup. The product is not mentioned at all and is only suggested by Bill boards in the background featuring Mars Bars but with the word Mars replaced by â€Å"Believe†. Advertisement 6: http://www.youtube.com/watch?v=xm7SGhoTXR4 This is a 2007 advertisement featuring old footage of tennis player John McEnroe at Wimbledon. During the course of a match, he is doing badly and loses his temper. He eats a Mars bar and goes on to win. The final picture is of a Mars Bar with the words â€Å"Work Rest Play† printed underneath. There is no voiceover. Advertisement 7: http://www.youtube.com/watch?v=WQugCSk8yYc A 2006 advertisement starts with the caption â€Å"Love on a Saturday Night with Mars†. It features a young man kissing one girl goodbye as she leaves his home (presumably on a Sunday morning). She leaves. Immediately she has left another girl appears who he greets and invites inside. The tableau implies that he is successful with the opposite sex and that he has substantial reserves of energy. The final caption has the tagline â€Å"Pleasure you can’t measure†. Themes An examination of the content of these advertisements reveals the following themes: The age range of all the protagonists is limited and generally does not exceed the age of 30 and does not include children. The only exception is in advertisement 1 which features older adults and children, which is chronologically the oldest. Of the seven advertisements, five have men as their major participants. The exceptions are advertisements 1 and 2 which are the oldest. There is an implication in each of the advertisements 2-7 that eating a Mars Bar assists in achieving success in some way. Specifically: Ad2- Success at work Ad3- Success in sport, attractiveness to opposite sex; Ad4- Attractiveness to opposite sex; Ad5- Success in Sport; Ad6- Success in Sport; Ad7- Attractiveness to opposite sex; There has been a gradual change from Ad1 to Ad7 in moving away from the emphasis on ingredients and value for money. From Ad1 to Ad2 the ingredients listed drops sugar and replaces it with malt. By Ad4 the listing of ingredients is dropped altogether and does not appear again. All advertisements emphasise the importance of the product in giving energy. Market Segmentation Assumptions Using Jobber’s schema of market segmentation criteria (Jobber, 2004, p213), the above can be analysed to identify Mars market segmentation strategy for the Mars Bar. Profile Variables Demographic- The advertisements are aimed exclusively at the young and vigorous and almost exclusively at males. Socio-Economic- The emphasis on young males would imply that the target group would not generally have large disposable incomes. However, there is not a clear emphasis on any socio-economic group. Geographic- Five of the seven advertisements feature primarily an urban environment. However, this is where the majority of the UK population live, so it should be expected. Psychographic Variables Lifestyle- The emphasis on the product giving energy would suggest that the product is aimed at people who have, or see themselves as having, a busy demanding lifestyle. Personality- The advertisements 2-7 all seem to associate the product with the striving for success. It is possible that the message is â€Å"Winners eat Mars Bars and I am a winner†. Behavioural Variables Benefits Sought- The clear benefit sought in all of the advertisements is that of a snack which provides an energy boost during the day. In addition, there has been a change in Mars’ assumption about the benefits sought from Ad1 (good value, large size, full of high calorie ingredients) to subsequent advertisements when these are no longer seen as benefits because of concerns about diet. Purchase Occasion There is no clear evidence of Mars’ assumptions about purchase occasion after Ad1 which in its tagline implies that Mars Bars should be purchased daily. Purchase Behaviour- There is no clear evidence in the advertisements of Mars’ assumptions about purchase behaviour. Usage There is a clear implication from the advertisements 2-7 that Mars consider young males as the main consumers of bar chocolate. Perceptions, Values and Beliefs All the advertisements, seem to emphasise the importance of striving, hard work, competing and living for the moment. It can be assumed that Mars are targeting those that share those values. Market Segmentation The division of a market into different homogeneous groups of consumers is known as market segmentation. Market segmentation correctly applied is about understanding the needs of the customer and therefore, how they decide between one product to another. This insight is used to form groups of customers who share the same or very similar value criteria. A company is then able to determine which groups of customers is best suited to serve and which product and service offers will both meet the needs of its selected segments and outperform the competition. The primary objective of segmentation therefore must be how to win and retain the customers you want to serve. The variables used for segmentation include: Geographic variables Demographic variables psychographic variables and behavioural variables. We have applied these variables to the Mars Bar and in this report we will provide an insight into segmentation and how this relates to consumer purchasing behaviour. Today’s consumer is more ethically and environmentally aware and environmentally aware than ever before and increasingly so with regard to the consumption of food and drink. In the media, on shelves, the focus on reducing our carbon footprint is constantly present and the push to understand where our food is from is increasing. Customers segment themselves and take no notice of how companies segment their market when choosing between competing products and services, customers select the proposition that meets their needs better than any other. To win market share, therefore Masterfoods ensures that their offers meet these needs better than any other at a price they perceive as providing superior value for money (which does not necessarily mean it has to be the cheapest) in order to achieve this Masterfoods have made sure Mars Bar is available in any region of the world or the country. George Day (1980) describes a bottom- up approach in this approach you start with a single customer and then build on that profile Masterfoods initially aimed the Mars Bars at the active person who worked hard this was predominately aimed at the young male market. However this approach has changed and the company is now targeting females and the health conscious market- by making their chocolate bar lighter and encouraging people to see it as a snack, compared to a lunch replacement. The Bar itself is reasonably priced it appeals to all due to its slick slogans ‘pleasure you cannot measure’. Discussions did take place to introduce rennet to the Mars Bars but this was quickly withdrawn due to pressure therefore this leads us to believe the consumer has power and religion and ethnic marketing has role to play in the demographic variable in market segmentation. The Mars Bar itself has been updated with new features such as a funkier typeface on the wrapper and a lighter whipped nougat filling. Mars bars used to be pretty challenging to chew but that familiar caramel- induced jaw ache will soon be forgotten, as Mars become even more like milky ways. The person that purchases a chocolate bar is often not thinking what chocolate he or she wants: it’s due to the advertising and identification with the brand that leads the person to buy a particular bar of chocolate. Mars Bar at the start mentioned in its slogan ‘work rest and play’ due to the changing life styles values, attitudes, personalities of people Masterfoods have had to change their approach and now it has adopted ‘pleasure you cannot measure’ this aims to reflect

Facts About Burger King Holdings Marketing Essay

Facts About Burger King Holdings Marketing Essay Burger King (BK) is the second largest fast food hamburger restaurant (FFHR) in the world with operations in 74 different countries. Its major competitors are McDonalds, Subway and Yum! Brands. BK was ranked among Americas 1,000 largest corporations by Fortune Magazine in 2008. Further, Burger King is listed among one of the Top 100 Best Global Brands. History The history of the brand Burger King refers to 1959, when J, M and D.Edg purchased the firm from the original founders. Company was run as an independent entity for eight years, eventually expanding to over 250 locations in the United States, but in 1967 due to some reasons, baking giant Pillsbury repurchased Burger King. In 1978, when McDonalds executive Donald N. Smith came to renovate the company BKC was prominantly modificated in terms of its franchise agreements, strategy, menu, and restraunt look out. But Poor operating performance and ineffective leadership weight down the company during many years, even after Diageo, the global alcoholic beverages company baught Burger King in 1989. Eventually, Diageo damaged the company by neglecting the brand, and major franchises were driven out of business and its total value was significantly decreased. In 2002 Diageo divested itself of the money-losing business and sold Burger King to a group of investment firms lead by TPG Capital. Aft er this acquisition, many positive changes started to happen to Burger King. One of the major issues was first public offering in 2006, which was highly succefful. But there were some spots on Burger King reputation. The case of unsauccessful Buck Double campaign, which promoted $1 burgers, provoking the lawsuits from franchisees, unhappy with selling at a price lower than production costs. Those events somehow were reflected on the BKC stock behavior. By the time the ordinary stock of Burger King was selling at $16 per share, another interesting and totally unexpected thing shocked the global business community. On September 2, 2010, a Brazailian company 3G Capital Management LLC. Announced decision to acquire all the stocks of Burger King for $24.00 per share, or $3.26 billion in aggregate including Burger Kings outstanding debt. As the purpose of this report is to analyse the current state of the company and give recommendation upon this recent transaction, further in this paper we will answer whether it was good or bad acquisition. Key People of Burger King John Chidsey, Ex-CEO, currently is a Co-Chairman of the Board BK Inc. He joined Burger King Corporation as an Executive Vice President and the Chief Administrative and Financial Officer in March 2004. In fact, his effective leadership and strategic thought brought company to a quite successful level of performance. His wide range of responsibilities included monitoring franchise and company operations, finance, corporate strategic planning, and oversight of the annual budget, the information technology function, risk management, and corporate procurement, as well as the Franchise Financial Restructuring Program (FFRP). Mr. Chidsey obtained Doctor of Jurisprudence and MBA from Emory University. Therefore his academic background in law and business, overall professional skills and previous experience bring unprecedented value to the company. As from the recent news, John Chidsey is going to resign from the board and will be employed with BKC until the April 18, 2011. Ben Wells CFO and Treasurer of Burger King, who has more than 25 years of experience in financa. He repots directly to CEO and proves himself as a key member of the executive leadership team. Before joining BKC he held a position of vice president and corporate treasurer at Compaq Computer Corporation, when he successfully led the finance team in stabilizing finance and accounting operations.He also was employed by such famous corporation as British Petroleum and Hewlett Packard. Possessing degree in economics and business administration (University of Missouri, Texas AM University, Canisius College), he is capabable for building a world-class treasury organization and developing capital structure and risk management programs for the global organization. Alexander Behring Co-Chairman of the Board BK Inc. and Managing Partner of 3G Capital Management LLC. Experienced engineer and successful private equity manager, he is the one, who was behind the $4bn takeover of BKC. Becoming one of the inflluential investors of Brazil, he started and lead America Latina Logistica, the biggest railroad and logistics corporation in Latin America. Mr. Behring holds MBA from Harvard Business School and Bachelors Degree from Pontifà ­cia Universidade Catà ³lica do Rio de Janeiro. Bernardo Hees new CEO of Burger King Inc., since September 2010. Previously, he was Chief Executive Officer of America Latina Logistica (ALL), as a successor of Alexander Behring, since January 2005 and served on its Board of Directors. B. Hees is an experienced executive with an impressive track record of enhancing performance, managing a team that drove strong gains in both revenues and profitability. He obtained MBA from the University of Warwick and passed Owners-Presidents Management program at Harvard Business School. According to his sound resume and reputation, he can be fairly considered as an excellent steward of the Burger King brand, inspired by the intention to take company to the next level of competition in the U.S. and worldwide. Business Model of Burger King: A business model is a plan implemented by a company to generate revenues and make profits from the operations it performs. (Investopedia, n.d.). Burger King uses the franchise business model to generate profits. Under the franchise arrangement, the franchisees invest in the equipment, signage, seating, and decor of the restaurant, while the company owns or leases the land and building. The company generates revenues mainly from three sources: sales at the company restaurants, royalties and franchise fees, and property income from certain franchise restaurants that lease or sub-lease property from the company (Datamonitor, 2010). Resources of the Company Reagrding the resources available for sustainable comptitive advantage, those resources are classified into tanbgible and intangible. As Burger King is a well-establiched global corporation, it has formulated very strong basis for its worldwide operations. In fact, despite of performing in the fast paced indutsry and facing the risk of once to become unclaimed due to unhealthy food provision, as consumers may change their preferences, BKC definitely creates a unique line of products. For instance, famous Whopper sandwich, CroissanWich, flame-broiled hamburgers and etc. Burger King proves itself as genuinly global company by localization of products versions by adding ingredients such as teriyaki or beetroot and fried egg to the Whopper; beer in Germany, Italy and Spain; and halal or kosher products in the Middle East and Israel. They property counts for almost 12 000 restaurants worldwide, of which 60% is concentrated in US and Canada, and 40% is internationally spread. Regards the intangible assets, highly quilified and experienced executive management team is a great value to Burger King, promising effective operations and high and stable earnings growth. While globally recognised brand Burger King is another powerful asset to corporation, as well as reputation and products assocated with it. And last, but not the list is the Knowledge, which mainly brought the Burger King fame for its products. They definitely possess unique production technology, which is constantly updated and successfully implemented. Strategy Analysis Business Strategy Analysis From pdf Business Strategy Analysis helps us evaluate the sustainability of the firm. BK strives to implement the following elements into its business strategy in order to grow. Further drive sales growth: BK is attempting to increase sales growth by enhancing guest experience, expanding hours of operations and emphasizing on restaurant reimaging program. All this is expected to result in higher sales and traffic in these restaurants and yield strong cash on cash returns. Enhance restaurant profitability: BK endeavours to enhance restaurant profitability by leveraging their fixed cost structure by introducing higher margin products and creating efficiencies through improved speed of service and equipment. Further, BK utilizes market based pricing model to achieve optimal pricing in the highly competitive market environment, thus making it a market follower. Employ innovative marketing strategies and offer superior value and quality: BK employs innovative and creative marketing strategies to increase their restaurant traffic and comparable sales. BKs whooper has been one of the best known products in the fast food industry. In addition, BK has also launched AngryWooperTM sandwhich, BK Burger Shots and BK Breakfast ShotsTM in the U.S., the King DealsTM in Germany, the U.K. and Spain and the Come Como ReyTM (Eat Like a King) every day value menu in Mexico. Further, their advertisement campaigns have always created a buzz and improved their visibility in the market. Expand our large international platform: Presently, BK is concentrated in the US and Canadian markets only, therefore they have a significant growth potential in international arena. BK has realized this and has developed a detailed global development plan to accelerate growth over the next few years. However, entering into international markets is tough because McDonalds already has its presence in almost all countries of the world. Further, BK fails to mention the strategy with which they plan to enter international markets. This maybe because they do not want to divulge their strategy to their competitors, or because they do not have a strategy which can provide them a competitive advantage over McDonalds. Use proactive portfolio management to drive growth: BK intends to use proactive portfolio management to drive growth and optimize their Company restaurant portfolio and franchisee participation in new and existing markets, while maintaining our 90/10 franchise to Company restaurant ownership mix. Between April 2008 and May 2009, BK acquired 128 new restaurants in parts US and sold 39 Company restaurants to new and existing franchisee. In addition, they closed under-performing restaurants in UK and sold certain Company restaurants in Germany and Canada to their local franchisees. Thus, the business strategy focuses on driving sales in existing markets and striving for presence in international market. However, almost all quick service restaurants that strive for greater profitability follow a similar strategy. If BK wishes to have a greater market presence, then it has to keep coming up with new, innovative, and creative products and marketing campaigns as these are the only ways by which they can differentiate their brand. Further, we carried out the industry analysis (See Appendix X), and found that per se the industry has a good market potential. Moreover, as the global economic environment improves the industry would again be profitable as the consumers would again become price insensitive and companies coming up with new, innovative and affordable menus would have more power than the buyers and suppliers. In addition, the industry is forecast to increase by 19.2 % till 2014 and there is a growing demand of fast-food in the emerging markets like India, China, and Indonesia etc. Therefore, the industry has good future prospects if tapped in an appropriate manner. Based on the SWOT analysis (see Appendix X1), it can be discerned that the company understands that the only way to increase its profitability is through constant innovation and expansion into new international market; and given the brand reputation, the franchise mix and robust financial performance, we think the company has the capability to grow profitably in the future. 5. VALUATION The value of any security is determined by its quality and profit potential. The economic environment and industry in which firm operates also have inevitable impact. Hence, we valued of BKC by incorporating these factors into the analysis of BKCs stock value. It is well known that it is very subjective to valuate any company and its stock as the market is changing constantly and the market price heavily depends on peoples expectations and feelings. The good example might be Burger Kings market price that soared from $16.77 to $13.64 after the acquisition announcement http://www.wikinvest.com/stock/Burger_King_Holdings_(BKC)/WikiChart (Appendix H). Most analysts use various valuation models to calculate whether a stock is overvalued or undervalued. Those models are just generally accepted ways of assessing a companys stock and make a recommendation. Thus, analysts should not rely on the results of these models only but also take into consideration performance of existing competitors. Using comparables, i.e. ratios of identical companies and their financial performance indicators, as an addition to the valuation analysis should give a better understanding of company health and what it stands for in the market. For that reason, we have imple mented several valuation models, including Dividend Discount Model (DDM), Market premium (MP) and Residual Earnings Model (RE), and compared BKCs performance to its major competitor McDonalds using financial ratios. It should be noted that for the sake of comparison, we have taken the financial data available at the end of fiscal years for BKC and McDonalds i.e. June 30th, 2010 and December 31st, 2010, respectively. Further, the spot stock prices are taken as of June 30th, 2010. 5.1 Performance [I THINK PERFORMANCE SHOULD GO IN HERE] 5.2 Dividend Discount Model Starting from year 2006, when Burger King was first listed on the New-York Stock Exchange, the company has paid the fixed dividend of $0.25  [1]  per share per year (Appendix A). Therefore, we do not expect any future dividend growth and assume zero growth for DDM valuation model. For simplicity, we use DDM-perpetuity and take required rate of return (k) as a discounting factor (r). Therefore, V = D/r à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ (1) According to The Capital Asset Pricing Model (CAPM), required rate of return (k) is calculated as follows: k = rf + B(rm rf) à ¢Ã¢â€š ¬Ã‚ ¦.. (2) where, rf = risk-free rate, B = beta, (rm rf) = market risk premium We have used risk-free rate of 2.92% from company report (Burger King Holdings, 2010, p.87), company beta of 0.80 was taken from on-line source (ADVFN, 2011) and market risk premium 6.75% from Journal of Financial Economics, which is a bit outdated but we believe that this type of market is even riskier then it was 10 years ago (Fama, 1997, p.172). Substituting the values in equation 2, we get k = 2.92% + 0.80*6.75% = 8.32% As mentioned before, since r = k, substituting the value of r in equation 1, we get V= 0.25/0.0832 = $3.00 (The value of BKCs share) However, as of June 30th, 2010 market share price of BKC was $16.84/share (Wikinvest, 2011). Further, in order to assess our valuation, we valued the share price of McDonalds share and got a valuation of $36.28 (for calculations, see Appendix G). However, as of June 30th, 2010 the share price is $65.87. As, McDonalds is more popular brand than BK, and its stock price is twice as high as the valuation figure, whereas BK King is way behind McDonalds but its price is five times higher than the calculated value. To investigate the reliability of this result we calculate the market premium of the BKs share. 5.3 Market Premium Model The measure of stockholders equity on the balance sheet typically does not reflect the intrinsic value of what the equity is worth (Penman, 2003). There is a definition of intrinsic value which states that it is the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value (Investopedia, 2011). For that reason it is meaningful to see what extra price, or premium, the market pays for a particular security. In order to calculate market premium we use the formula (Penman, 2003): Market Premium = Market Value of Equity Book Value of Equityà ¢Ã¢â€š ¬Ã‚ ¦.. (3) Calculating the market value of BKC as of June 30, 2010, Market Value = Price per share*Shares Outstanding à ¢Ã¢â€š ¬Ã‚ ¦. (4) = $16.84*135.4m=$2,280.136m The Book Value of BKC = Total Shareholders Equity = $1,128.4m (Appendix C). Therefore, Market Premium = $1,151.736m. With Shares Outstanding = 135.4m, the Book Value per Share (BVPS) = $8.33 and Premium = $8.51. Indeed, the premium constitutes 102% over the book value. As compared to McDonalds, with 1,072m shares outstanding (Appendix D), McDonalds has a BVPS of $12.25 and the premium of $53.62, which is 438% higher than its book value. Thus, we may conclude that market is ready to pay quadruple premium for MCD, which indicates a great brand awareness and customer loyalty; however, they are still ready to pay twice for BKCs shares, which is a good sign for the stock evaluation. 5.4 Residual Earnings Model The residual earnings model relies on book value, which represents shareholders investments into the firm and measures value added to the investments. In other words, the book value of equity is taken and discounted back potential abnormal earnings are added to it. These earnings are returns to shareholders above their required rate of return. These earnings are important because otherwise the shareholders would have no objective to invest into the company if it break-evens at the minimum rate of return (Penman, 2003). Value = Book value + Premium à ¢Ã¢â€š ¬Ã‚ ¦. (5) or Value of common equity (VE0) = B0 + RE1/re à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ (6) where, re = required rate of return, RE = Residual Earnings for Equity Now, Residual Earnings = Comprehensive Earnings (Required Return for Equity * Beginning-of-Period Book Value) à ¢Ã¢â€š ¬Ã‚ ¦.. (7) BK reported $165.8 million of comprehensive income on June 30, 2010 (Appendix B) on book value of $974.8 million. If BKs shareholders required a return of 8.32% in June, 2010; then its 2010 residual earnings were: Residual Earnings = $165.8 (8.32%*$974.8) = $84.70 million The very existence of the residual earnings gives us a sign that Burger King is a good investment to get extra return on invested funds. Further, substitutiting the values in equation 7, we get: Value of common equity (VE0) = $974.8 + $84.70/.0832 = $1,992.83 million VE0/share = $1,992.83/135.4 = $14.72 Assuming that RE remain unchanged (g=0%), then the calculated the intrinsic value of BKs share of $14.72 is close to market price of $16.84. Obviously, market was aware of the existing premium and recognized it by setting market price at that level. 5.5 Summary The three valuation models have revealed Burger Kings financial performance from different angles. For the reason that todays market is different from yesterdays, the DDM model is not really appropriate for security valuation, because contemporary market is mature and, as we have observed, dividends do not grow along with growing earnings as used to be in the past. However, this model was implemented just to see the consistency and get a better understanding of the value of the stock. The market premium model gave us a good sense of what market is ready to pay for the BKs share and McDonalds share. Further, the residual earnings model is said to be more reliable as compared to the other two models because it uses book value of the equity as well as market premium model. Overall, it can be seen that BK per se has performed well in the market; however it has been far behind its main competitor McDonalds. 6. RISKS Burger King is exposed to a variety of risks (3G Capital, 2011). The most prominent and important risks come from internal characteristics of the firm and market-determined factors. Internal characteristics of the firm include: Business risk: This risk might arise as a result of decreasing demand due to changes in consumer preferences, possible suppliers delays or adverse economic conditions. Also, the business model is based on franchising contracts, so franchisees financial strengths and ability to manage increasing costs is also subject of risk. Financial risk: BK has long-term and short-term debt outstanding, so it should have enough operating cash to meet these obligations. According to the notes to companys financial statements, BK uses derivative instruments, such as interest rate swaps and foreign currency forward contracts, which imply a higher risk exposure. Legal risk: As every food company, BK is in charge of risk related to food safety and toys as promotional instruments in their restaurants, as well as any legal judgments and pressures from competitors. Country risk / Exchange rate risk: BK is an international company, therefore fluctuations in foreign currencies and adverse government regulations create substantial risk exposure. Reputation risk: Customers in FFHR industry are very sensitive to the reputation and brand awareness of the company. Market-determined factors include: Systematic risk: This is an unmanageable risk, which can arise as a result of recessions and wars. Analyzing the risk associated with the functioning of the company, it can be discerned that BK acknowledges that there are some risks associated with the business. And therefore, has some measures such as following a market based pricing model, using trusted suppliers, etc. for overcoming these risks (Annual report, 2010). Further, BK is still vulnerable to the unknown risks such as exchange rate risks and systemic risks. However, these risks are faced by all companies. It is just a matter of the way in which they respond to these risks that determines how they fair in the market. As for BK, the impact of the systemic risk is has been high as compared to its competitor McDonalds (Datamonitor, 2010). However, they have realized this and have tried to overcome these setbacks by implementing promotional, other price discounting actions, and closing non-profitable company restaurants. (Annual report, 2010) 7. CONCLUSION Based on our analysis of companys background, strategy and people, as well as industry analysis and financial performance valuation we discern that the financial performance of BK was stable and improving during last five year, and the valuation revealed that the market believes that Burger Kings stock is worth investing. Therefore, we can conclude that the company is financially healthy and hence the acquirer, 3G Capital, made a good decision. However, because the new management does not have any experience in the food industry and adding to this the current economic situation, Burger King might be in a vulnerable position right now. Further, in the industry analysis, on one hand, there was a threat of customers switching to the healthier options, which might imply a risky acquisition decision by 3G Capital. And on the other hand, there was a positive outlook towards the quick service restaurant industry, which is expected to grow at a rate of 3% per year. Analyzing the annual repor t of BK, we realized that BK is aware of these issues and has been trying to improve them by introducing healthier meals and innovative marketing campaigns. Moreover, the strategy of the company is very ambiguous. The strategies and goals of BK are very generalist and unclear how the management is going to achieve these. However, the new management might set a new and a sound strategy and provide necessary resources for achieving it. In conclusion, in light of the business strategy and the comparison of the performance of the company with its competitiors , we think that the BKs acquisition was hugely overvalued. However, because of the stable financial performance and positive industry outlook it was a good acquisition and if the new management is able to tap the potential in the existing and new markets in a appropriate manner then the companys growth potential is huge. [PLEASE FEEL FREE TO ADD/AMEND SOMETHING IN CONCLUSION] APPENDIX A Consolidated Statement of Income Burger King Source: Burger King Holding, Inc. Form 10-K, 2010 APPENDIX B Consolidated Statement of Stockholders Equity Burger King Source: Burger King Holding, Inc. Form 10-K, 2010 APPENDIX C Consolidated Balance Sheet Burger King Source: Burger King Holding, Inc. Form 10-K, 2010 APPENDIX D Consolidated Statement of Income -McDonalds Source: McDonalds Corporation, Form 10-K, 2010 APPENDIX E Consolidated Statement of Stockholders Equity -McDonalds Source: McDonalds Corporation, Form 10-K, 2010 APPENDIX F Consolidated Balance Sheet -McDonalds Source: McDonalds Corporation, Form 10-K, 2010 APPENDIX G Dividend Discount Model McDonalds For valuation of McDonalds share, we have used the same risk-free rate of 2.92% and market risk premium of 6.75%, company beta of 0.49 was taken from the same on-line source (ADVFN, 2011). Substituting the values in equation 2, we get k = 2.92%+ 0.49*6.75% = 6.23%. The dividend per share was virtually stable; therefore we took the figure of $2.26 per share, as of 2010. As, r = k, substituting the value of r in equation 1, we get V = 2.26/0.0623 = $36.28 Therefore, as of June 30th, 2010 market share price of MCD was valued using the DDM model as $36.28, whereas the spot share price was $65.87 per share. It should be noted that for the valuations using the DDM model, we take the same risk-free rate and market risk premium, because companies are competing in the same industry, however beta is different because MCD is more stable than BKC which is why the risk of volatility is lower. McDonalds price history Source: Morningstar investment research, 2011 APPENDIX H Price History -Burger King Source: Wikinvest, 2011 Industry Analysis: Using the Porters Five Forces Model (Datamonitor, Industry analysis) Porters five forces model helps in analysing the profit potential of an industry which would eventually help in determining a firms chances of generating long-term profits. (book) Bargaining power of buyers: The economic recession has strengthened the buyer power as the industry players try to secure price sensitive consumers using competitive pricing strategies. However, due to the sheer convenience of having fast-food makes fast-food more important to the consumer than a simple source of food. Therefore, the buyer power is assessed to be moderate. Bargaining power of suppliers: For a fast food company to make profits, it is vital that the company has reliable suppliers that offer food of marketable quality and at a low margin. However, a large number of these suppliers serve other kinds of foodservice and cost service customers, thereby decreasing their dependence on fast food players. Therefore, the supplier power is considered to be moderate. Threat of new entrants: As large capital reserves are not required for setting up a single, independent fast food outlet, the entry into the global fast food market is easy. However, to build a global brand requires precise market knowledge, an excellent management team, and an admirable brand reputation, therefore the threat from new entrants is assessed to be moderate. Threat of substitute products: The substitutes for fast-food include other forms of profit foodservice and also food retail (ready meals or ingredients for home cooking). However, these are considered to be unhealthy and take time in preparing, whereas convenience and availability are considered to be the main drivers for choosing fast-food. Therefore, the threat of substitutes is assessed to be moderate. Rivalry among existing firms: Rivalry in the fast-food industry is considered to be intense as the fast food markets can be very concentrated. The burger segment is close to being a Burger-King/ McDonalds duopoly. Further, prices especially of value meals and brand power form the greatest sources of competition in the fast-food market. SWOT Analysis: The SWOT analysis helps us determine a companys strengths and weaknesses, and then helps us evaluate whether the company has the ability to effectively exploit its opportunities and overcome its threats. Adapted from (Datamonitor, 2010) Strong market position and brand equity BK enjoys a strong market position and possesses an established brand reputation. This has enabled it to gain economies of scale, increase its bargaining power, and enter international markets. (Datamonitor, 2010) High franchise mix The company has franchise stores and company restaurants in the ratio of 90-10. This restaurant ownership mix provides BK with a strategic advantage as the capital required to grow and maintain the BK system is funded primarily by franchisees, while the Company restaurants give it a sizeable base to demonstrate credibility. (pdf) Innovative marketing campaigns and advertising to provide greater visibility BK uses innovative marketing, advertising and sponsorships to drive sales and generate restaurant traffic. The main target market of BK is the 18-35 year old male with a love of fast food. (Datamotiner, BKcase study). Therefore, its advertisements are made to appeal to this segment. Further, BKs advertisements campaigns such as Whopper Sacrifice campaign and Cheat on beef campaign help the company gain better visibility which helps it to have an impact on the revenue generating capacity. Weaknesses Declining comparable sales growth BK saw a decline in its comparable sales growth in 2009. This was mainly because of continued adverse macroeconomic conditions, higher unemployment, more customers eating at home, and heavy discounting by other restaurant chains. This only means that the management has to focus on various product offerings that cater to the value conscious customers during times of poor economic conditions. Concentrated operations-in terms of geographic presence and dependence on selected distributors increases business risks Although BKC operates in 74 countries, its operations are heavily concentrated in the US. Approximately 61% of its restaurants are located in the US. US and Canada account for about 68.7% of the total revenues, whereas BKCs competitor McDonalds generates only 35% of its total revenues from US. Concentrated operations increase the business risk of the company and impact its results of operations and thus its financial condition. Opportunities Expansion in existing and new markets BKC should focus on expanding into existing and new markets and the company has taken steps to expand into international markets. 2009 saw a 28% rise in new restaurants in international markets. The company also entered two new in