Slavery Essay Example | Topics and Well Written Essays - 500 words - 3

Slavery - Essay Example Even prior to the establishment of these factories, the demand for slaves was still high all over the world. In the United States, the demand for slaves increased with the growth of the industrial revolution which saw large-scale textile industries emerge. The main reason why slavery grew was the fact that in the federal government, created after the freedom of the American nation as an independent set of states, most of the representatives were large-scale farm owners from the south (Hammond 176). As such, in the presence or the absence of the textile industry, slaves would still be shipped to the country to assist with household chores and the likes. Regardless, the growth of these industries prompted the establishment of the slave trade as a lucrative business venture. Which mainly became competitive, led to the increase in violence subjected among slaves. The increase in violence subjected on the slaves was mainly a strategy that had been developed by plantation farmers to ensure that the cotton picked was more than enough and this thus led to the increase in immorality and inhumanity among the southern states. The rise in the prices of slaves equally motivated the violence subjected upon them, since the white men understood that they were their property and after being sold for such a high price, the slaves were expected to be equally productive which thus stimulated the use of violence as a way to improve productivity, which was later a power used by the southerners for their pleasure or to exert power.

Opposition to Immigration Essay Example | Topics and Well Written Essays - 1250 words

Opposition to Immigration - Essay Example In a strict economic sense 2006 has been a good year till now. As a matter of fact, even from 2004, the economy has been looking up. Economic growth which was 4.2 % in 2004, was 3.5% in 2005; which is still good. Unemployment at 4.7% is quite an achievement compared to the 8.4% figure for Europe. However it looks as if it will take more than that to whistle a happy tune. ("The United States ...") The steadily increasing trade deficit, Katrina, the involvement in Afghanistan and Iraq, our standoff with Iran, and the regular outflow of jobs through outsourcing are enough to dampen the spirit of the average American. Add 12 million illegal immigrants. And a pall of gloom descends over middle class America. Fact is many Americans are seriously concerned about the immigration issue. It has become a subject that has dominated a variety of forums and has spawned several localized movements. One such local unit that called itself "Minutemen" patrolled Arizona's border with Mexico during April 2005. This anti-immigration sentiment is sometimes referred to as "nativism". ("Immigration Policy Issues") "Nativism" is not new to America. It first reared its head at the beginning of the 19th century when hordes of immigrants from Southern and Eastern Europe began to pour in. The consequence of that nativist stirring was "a 1924 law establishing a quota system that sought to limit entry" into the United States. (Campo-Flores) The more recent immigration issues however relate primarily to illegal immigrants, and the conviction in some quarters, that the huge inflow of these "undocumented" workers is the cause for the country's woes. In the 1980s the American people were highly unsatisfied with the Federal policies of the 1970s and early 1980s. In 1982 the country was in a deep recession. The percent of businesses that went bankrupt increased by 50% when compared to the previous year, agricultural exports fell, as did the price of crops. Interest rates rose, inflation was up from 6.2% in 1973 to around 13.5% and unemployment was at a significant high of 7%. (Teacher's Guide). Federal deficits soared throughout this period. This was probably the worst period in America's economic history since the Depression of 1929. During the period 1980 to 1990 Immigration and Naturalization Service (INS) estimated the number of illegal immigrants to be around 2.6 million. The general sentiment then was that 3 these undocumented immigrants were the cause of all economic woes. As a consequence we had the Immigration Reform and Control Act (IRCA) of 1986. The primary aim of this Act was to protect the jobs of the domestic workforce. It also sought to punish employers of undocumented workers. (The Feminization of Immigration) The immigration issue is currently seen as a bigger problem than it was ever before. It's not surprising. For instance, Gordon County, Georgia had an immigrant population of just 1% in 1990. Today that figure stands at 12%. According to the Pew Hispanic Center, illegal immigrants currently make up 24% of agricultural labor, 14% of construction workers and 9% of manufacturing jobs. (Grow) The Bill that was passed by the House last December,

Contemporary Business Environment

Contemporary Business Environment 1. Introduction The contemporary business environment is extremely competitive and hence coping with such pressures calls for modern marketing which can go beyond developing a good product, pricing it attractively and making it accessible. Communicating with the present and potential stakeholders and the general public is no longer a matter of luxury but competitive necessity. Marketing gurus like Kotler and Keller (2006) believe that every company is inevitably cast into a role of a communicator and promoter. However, the main concern in the age of technology is not how to communicate but rather what to say, to whom and how often (Kotler and Keller, 2006). This is where marketing communications strategy comes into picture. This report will attempt to comparative analysis of Marketing Communications strategies and mix for the Cola drinks in the UK. Prior to diving into the crux of the report it is essential to have a understanding of the modes of communication which are generally included in the communication mix to form a communication strategy. Most of the experts entail five major modes of communication vis-à  -vis Advertising, Sales promotion, Public relations and publicity, personal selling, Direct and interactive marketing (Fill, 2006). Advertising: Advertising can be defined as any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor (Kotler and Keller, 2006). Sales Promotion: Activities included under sales promotion can be described as a variety of short-term incentives to encourage trial or purchase of a product or service (Kotler and Keller, 2006). Public Relations and Publicity: These are a set of communication programs designed to promote and protect the companys image or its individual product (Kotler and Keller, 2006).. Personal selling: These include all face-to-face interactions with one or more prospective purchases with an aim of making presentations, answering questions and procuring orders (Kotler and Keller, 2006).. Direct and interactive marketing: This is a product of the technology revolution and includes the use of e-mail, post, telephone, fax or internet to communicate directly with or solicit response or dialogue from specific customers and prospect (Kotler and Keller, 2006). Keeping the above descriptions in mind an analysis of the communications strategy employed by the lead players in the soft-drink market can be attempted. However, any comprehensive analysis would need to follow a specific blue-print to lend credibility to the conclusions drawn as a result of the analysis. The next section would provide a brief overview of the methodology employed by the author. 2. Research Methods The methodology is a plan for collecting, organising and integrating collected data so that an end result can be reached (White, 2002). In order to prepare this report the author employed both primary and secondary data. To begin with the report analysed the current market situation to aid a better analysis of the communications strategy employed by the companies. The data collected for this review was primarily collected from industry reports like the Keynote reports. Search string of ‘soft drink industry was entered in following database: Business source elite, Emerald and Ingenta Connect. Followed by a thorough industry analysis current communications strategy for Coca-cola, Pepsi and the Supermarket brands were analysed. The company websites and current adverts were the predominant source for this information. However, Datamonitor company profiles were employed to provide reasoning for the companys choice of the strategy. Textbooks like marketing management by Kotler and Ke ller and the others mentioned in the reference section at the end of the paper were employed to give a sound theoretical background to all the discussions made about the communications strategies. 3. Market Overview Traditionally the soft drink market has been dominated by two giants fighting it out at the top vis-à  -vis Coca-cola and Pepsi Cola. Coke has however been the market leader for a long time now. However, the proverbial ‘Cola war as it has definitely not died out. According to the Keynote Drinks market review, the UK soft drinks market was worth more than  £7.3bn in 2005 (Fenn, 2005). Moreover, soft drinks accounted for 30% of total commercial beverages consumption (Fenn, 2005). However, the carbonated soft drink category has experience overall softness the last several years (Phillips, 2006). The communications strategy adopted by the players in the industry would be affected substantially by the changes in the industry dynamics and the best way to take a look at the relevant changes would be to employ a PEST analysis. 2.1 PEST analysis 2.1.1 Political Government pressures led the US and the UK soft drink industry to ban fizzy sodas from Elementary schools. Political, guided by high profile figures line Californias governor Arnold Schwarzenegger, and public forces alike are pushing hard to extend the ban into High schools (Mercer, 2005). The Cola companies thus need a strategy to communicate a healthy image. Public health advocates and health researchers in the US and the UK have proposed a consumer paid Obesity Tax on carbonated drinks in a bid to reduce consumption and fight the global epidemic that is obesity. (Datamonitor, 2006b). This would require a even more forceful pursuit to produce an image make over into s drink that does not contribute to obesity in both the male and the female target audience. 2.1.2 Economic The 2000 US census indicated that the upper-income consumers were growing and the lower income declining rapidly, yet consistently (Ferrell and Hartline, 2005). This, in turn, lead to a trend in consumer spending and association with more luxurious things like music. 2.1.3 Social. Most of the lifestyle changes are closely related to the corresponding economic shifts. As mentioned above, on the one hand lifestyle awakenings towards healthier food and drink customs in developed countries possibly will fetter profitability, on the other hand heightened consumer spending power in developing countries like India and China have paved the way for a double digit increase in international sales of soft drinks (Fenn, 2005). 2.1.4 Technological Technology, today, is the single most imperative weapon for a firm to procure, enabling it to combat most threatening situations, ranging from reducing the cost of production to coming up with new-fangled healthier alternatives and novel strategies for communication. In a era where communication is a two way process, internet has helped the soft-drink industry in creating more awareness than ever before. 4. Analysis and Discussion On the basis of the industry situation entailed above the next few sections would analyse the current communications strategy employed by Coca-Cola, Pepsi and the Supermarket brands like Tesco Cola. 4.1 Coca cola The Coca-Cola Company (Coca-Cola) manufactures markets and distributes non-alcoholic beverage concentrates and syrups (Datamonitor, 2006a). The syrups, concentrates and beverage bases for Coca-Cola and nearly 400 other soft-drink brands are manufactured and sold by the Coca-Cola Company and its subsidiaries in nearly 200 countries around the world. More than 60% of its products are sold outside of the US (Datamonitor, 2006a). It is headquartered in Atlanta, Georgia. The company recorded revenues of $23,104 million during the fiscal year ended December 2005, an increase of 6.3% over 2004. The companys net profit was $4,872 million in fiscal year 2005, an increase of 0.5% over 2004 (Coca-Cola annual report, 2006). The company is a clear leader in the soft-drink market, especially in the UK. The European Union segment is the largest revenue segment of the company. Moreover, Coca-Cola is the worlds leading brand. Business-Week and Inter-brand, a branding consultancy, reckoned Coca-Cola as the leading brand in their top 100 global brands ranking in 2005 (Datamonitor, 2006a). All the above has been achieved with the aid of a very carefully planned marketing communication strategy consistently over the years. To attract younger consumers to its flagship cola, Coca-Cola launched new marketing and ad campaigns in 2003. It also changed graphics on Coke bottles and adopted a traditional look for its cans. On observing Coca-colas latest adverts and promotional activities it is clear the organisations target audience continues to be the young generation. The company has a tie up with Apple computers and provides free iTunes song on every bottle cover as a promotional activity. Given the popularity of Apples iPod among the young audience a promotional collaboration with the computer giant sends a very strong message to the consumers. The new colourful campaign labelled by the company as ‘the coke side of life reinforces the youthful image of the brand. There has always been an attempt to create a fun image for the drink, which till now the company has managed to communicate extremely effectively. Besides this the company has launched the new range of Coke Zero, which is an attempt to meet the industry requirements of health conscious drinks. Although diet Coke was already present, it was predominantly communicated as a female drink. Hence to expand its target audience to include the males, Coke had to launch a new drink communicating a fresh unisex message. Another trade-mark Coca-Cola way of promoting its products has been the use of high-profile sports events to promote its brands. The company was been chosen as one of the official sponsors for the FIFA World Cup 2006 in Germany, as well as the Olympics Games 2008 in Beijing, China (Datamonitor, 2006a). The company has the opportunity to use these two high-profile events to strengthen its brands even further. Hence it is quite clear the target audience for the communication strategy is the younger generation. To provide a better a break down of the communication strategy employed by Coca-cola in terms of the communication mix is provided below. Advertising: The maximum amount of investment made by the company is in this area by employing leading personalities from sports, movies and other arenas. The advertisement costs for the company have been astronomically high and it has been highly criticised for it in the past (Datamonitor, 2006a). Sales Promotion: There are constant offers that come with a bottle or can of coke, be it free song on iTunes or a buy one get one free offer, there is always an incentive to buy. Publicity and Public relations: As mentioned earlier, Coke as a brand has been the first one to set a trend of sponsoring big occasions and creating strong opportunities for publicity. Personal selling and direct marketing: The only means of direct consumer interaction seems to be the internet which has a highly interactive and colourful website. Moreover, it has a barrage of competitions and opportunities to win a prize for its visitors thus providing another form of incentive. 4.2 Pepsi Cola PepsiCo is a leading global snack and beverage company. The company manufactures markets and sells a range of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages and foods (Datamonitor, 2006b). The company operates in 200 countries besides the US and Canada (Datamonitor, 2006b). It is headquartered in Purchase, New York. The company recorded revenues of $32,562 million during the fiscal year ended December 2005, an increase of 11.3% over 2004. The net profit was $4,078 million in fiscal year 2005, a decrease of 3.2% from 2004 (Datamonitor, 2006b). It is however the second-largest manufacturer of carbonated soft-drinks in the world, second only to Coca-cola. There is not much to differentiate between Pepsi and Cokes current campaign elements. The reason and timing of the launches might be different and are discussed later on in the report. Pepsi has similar to Coke made music a part of its communication strategy by joining hands with yahoo music. Although not as attractive was the Coke campaign, the message is still louder, clearer and younger than ever before. Pepsi is sponsoring and flaunting a lot of sports personalities in its adverts as well ranging from rugby to cricket. Pepsis new message says ‘its the cola which is in synchrony with Pepsis tradition of structuring its messages to induce and assert choice over Coke. The communication mix is pretty much the same as that of Coca-cola. 4.3 The Supermarket Cola Supermarket colas include the likes of Tesco, Somerfield, Lidl etc. The primary aim of these colas is to give value for the customers money, in coherence with its main business objective. All supermarket brands have designed their communications strategy to achieve this main objective. For instance, the Tesco Cola would have price written on it in big font. Moreover, the label design and the content colour is similar to that of Pepsi and Coke to ensure that the customers are aware that they are getting the same product for a much more cheaper price. However, since this is not a very big segment of revenues for these supermarkets, specific communications based on promoting these drinks are not found. 4.4 Discussion Based on the above analysis a few crucial issues need be discussed to provide a deeper insight into the choice of the communications strategy chosen by each of the organisations. 4.4.1 Target Audience It is apparent from the above analysis that the communications strategy of all the three organisations is primarily based on identifying the target audience i.e. market segmentation. This could be a broad category based like the younger generation in case of Coke and Pepsi or a people shopping at the supermarkets in case of Tesco cola or other supermarket brands. The fundamental idea is to perform an image analysis and choose a communication strategy which would define a desired image (could be different from the present one). Moreover, this would also differ from product to product i.e. a diet coke is targeted more at the health conscious women. The current communication strategies in all three instances above seem to be hitting their target, however Coke as usual seems to be pulling out the best suited tricks with Pepsi just following suit i.e. taking music on board the communication strategy with iTunes seems to have boosted Cokes position much more while Pepsis association with yahoo music came only as an after thought. 4.4.2 Communication objective In cokes case the objective seems to be to maintain its strong brand identity and constantly renew it to keep the youthful feeling going. Since Coke is the market leader the communication objective does not have to attempt to change either the cognitive, affective or behavioural responses from its consumers. Pepsi on the other hand seems to be attempting to generate a liking among its target audience and capture Cokes share of the market. However, this does not seems to be working evident in Pepsis decreasing sales in the UK and the US (Datamonitor, 2006b). As far as the Supermarket brands are concerned Tesco colas communication objective is quite straight forward i.e. inducing preference among its customers to buy its product over the bigger brands by keeping the prices low and providing more value for money to its customers. 4.4.3 Message design The message design needs to reflect the communication object and appeal to the target audience. Cokes latest message says ‘the coke side of life, while Pepsi has been trying to woo its customers by ‘its the cola and the supermarket colas attempt to design the bottles similar to that of the bigger brands and add the word ‘value to the label. The messages from each of the three players seem to be in synchrony with their objectives, Cokes message design seems to have the right emotional selling proposition (ESP). 4.4.4 Message source The message for Pepsi and Coke are delivered by attractive and fit people predominantly from the sporting arena. This again reinforces the ‘health conscious image of the new drinks like Coke Zero. Moreover these are both male as well as female promoting zero calorie drink to expand the target audience from women to include men. However, how much the consumers trust the credibility of the people who communicate these messages to them remains to be seen. The supermarket Colas dont have to use these as their primary aim is to communicate to the consumer that it is a cheaper alternative and it is cheap because of meagre expenses in advertising. 4.4.5 Communication Channels Considering the size of the target audience the mode of communication chosen by Pepsi and Coke are justified i.e. the main channel of communication is television and internet. Adverts in papers, magazines and streets are commonly employed as well. However, the most cost intensive means is the television with each advert requiring a gargantuan amount of money. As mentioned earlier the supermarket brands cannot afford a high communication budget on solely marketing the colas especially at the price they need to sell it for. 5 Conclusion and Recommendations Taking into consideration all the points discussed above it can be concluded that the current communication strategy and mix employed by the organisations under scrutiny are a result of the changes in their external environment and are in synchrony with their apparent communication objectives. However, overall degree of influence exerted by the Pepsi communication message seems to be lower than its arch rival. While a consumer survey would be required to add credibility to the above statement the analysis and discussion do provide a useful insight into the communication strategy formulation process and the choice of the communication mix based on which few recommendations can be made. Identifying the target audience is the most crucial step towards developing an effective communication strategy. Moreover, while identifying the target audience and developing communication objectives the marketer needs to ensure that any gap between the current public perception and the image sought are covered. When deciding the marketing communication mix a cost benefit analysis of each tool needs to be done to ensure that the most effective strategy is produced within optimum budget. It is imperative to measure the marketing communication effectiveness by asking the target audience to recall the message, frequency etc in order to make any effective changes to an existing strategy.

The Evolution of Piracy :: Economy

The Evolution of Piracy The protection of trade in general has always been considered as essential to the defense of the commonwealth, and, upon that account, a necessary part of the duty of the executive power. INTRODUCTION Adam Smith lived in a turbulent and unpredictable world. Indeed Britain was an affluent nation at the time, but that does not over-ride the sometimes-barbaric notions of its citizens. Piracy was rampant in the Eighteenth Century reaching its peak in 1724 when trade almost came to a complete stop due to the constant threat of encountering pirates while at sea. The property-seeking vagabonds would hijack a ship, take what they wanted and either leave the crew to their own means in a damaged vessel or alternatively, enslave them and possibly use them for bartering later. Adam Smith when writing, An Inquiry into the Nature and Causes of the Wealth of Nations, was all too aware of the threat that pirates were still having on trade in 1776. Smith was logical in his assumption that the state should strive to protect the trade industry whenever possible, especially since in those days the sun never set on the British flag and England ruled the seas. Although Britain cannot be blamed though for lack of trying, piracy still exists today. Yet, because the act continues at sea often far from land, it gains little media attention, and therefore less action from governments. China, despite being a number one producer of pirates, continues to deny that there is a problem while at the same time often pardoning those who are caught. Countries such as Indonesia and Philippines, which have been hardest hit in the past few years by pirates, are looking for international assistance. The West is, of course, looked to for solutions yet choose seemingly chooses to turn a blind eye, perhaps in the name of diplomacy. When the world is ready to combat the perpetual problem of piracy, it may discover that by intertwining tougher policies aimed at dealing with piracy with current or future trade negotiations, productive steps can be taken to initiate plans to curtail modern day sea wolves who prey on the helpless. The suggestion of ‘Piracy Cha rters’ will be discussed further as the means of which to add the topic of to multilateral agreements. BODY Piracy is not something, which developed recently. The young Julius Caesar was kidnapped by pirates in 78 BC on a voyage to Rhodes and held for ransom.

Business Intelligence Essay

As Business Intelligence (BI) becomes a critical component of daily operations, real-time data warehouses (DW) that provide end users with rapid updates and alerts generated from transactional systems are increasingly being deployed. Real-time data warehousing and BI, supporting its aggressive Go Forward business plan, have helped Continental Airlines alter its industry status from â€Å"worst to first† and then from â€Å"first to favourite†. Continental Airlines is a leader in real-time BI. In 2004, Continental won the Data Warehousing Institute’s Best Practices and Leadership Award. Big Problems Continental Airlines was founded in 1934, with a single-engine Lockheed aircraft in the Southwestern U.S. As of 2006, Continental (Houston) is the fifth largest airline in the United States and the seventh largest in the world. Continental has the broadest global route network of any U.S. airline, with more than 2,300 daily departures to more than 227 destinations. Back in 1994, Continental was in deep financial trouble. It had filed for Chapter 11 bankruptcy protection twice and was heading for its third, and probably final, bankruptcy. Ticket sales were hurting because performance on factors that are important to customers was dismal, including a low percentage of on-time departures, frequent baggage arrival problems, and too many customers turned away due to overbooking. Solution The revival of Continental began in 1994, when Gordon Bethune became CEO and initiated the Go Forward plan, which consisted of four interrelated parts to be implemented simultaneously. Bethune targeted the need to improve customer-valued performance measures by better understanding customer needs as well as customer perceptions of the value of services that were and could be offered. Financial management practices were also targeted for a significant overhaul. As early as 1998, the airline had separate databases for marketing and operations, all hosted and managed by outside vendors. Processing queries and instigating marketing programs to its high-value customers were time-consuming and ineffective. In addition, information that the workforce needed to make quick decisions was simply not available. In 1999, Continental chose to integrate its marketing, IT, revenue, and operational data sources into a single, in-house, enterprise data warehouse (EDW). The data warehouse provided a va riety of early, major benefits. As soon as Continental returned to profitability and ranked first in the airline industry in many performance metrics, Bethune and his management team raised the bar by escalating the vision. Instead of just performing best, they wanted Continental to be their customers’ favourite airline. The Go Forward plan established more actionable ways to move from first to favourite among customers. Technology became increasingly critical for supporting these new initiatives. In the early days, having access to historical, integrated information was sufficient. This produced substantial strategic value. But it became increasingly imperative for the data warehouse to provide real-time, actionable information to support enterprise-wise tactical decision making and business processes. Luckily, the warehouse team had expected and arranged for the real-time shift. From the very beginning, the team had created an architecture to handle real-time data feeds into the warehouse, extracts of data from legacy systems into the warehouse, and tactical queries to the warehouse that required almost immediate response times. In 2001, real-time data became available from the warehouse, and the amount stored grew rapidly. Continental moves real-time data (ranging from to-the-minute to hourly) about customers, reservations, check-ins, operations, and flights from its main operational systems to the warehouse. Continental’s real-time applications include the following: †¢ Revenue management and accounting †¢ Customer relationship management (CRM) †¢ Crew operations and payroll †¢ Security and fraud †¢ Flight operations Benefits In the first year alone, after the data warehouse project was deployed, Continental identified and eliminated over $7 million in fraud and reduced costs by $41 million. With a $30 million investment in hardware and software over six years, Continental has reached over $500 million in increased revenues and cost savings in marketing, fraud detection, demand forecasting and tracking, and improved data centre management. The single, integrated, trusted view of the business (i.e. the single version of the truth) has led to better, faster decision making. Continental is now identified as a leader in real-time BI, based on its scalable and extensible architecture, practical decisions in what data are captured in real-time, strong relationships with end users, a small and highly competent data warehouse staff, sensible weighing of strategic and tactical decision support requirements, understanding of the synergies between decision support and operations, and changed business processes that use real-time data. Questions 1.Describe the benefits of implementing the Continental Go Forward strategy. 2.Explain why it is important for an airline to use a real-time data warehouse. 3.Examine the following sample system output screen. Describe how it can assist the user in identifying problems and opportunities. Extracted from http://www.teradata.com/t/page/139245/ 4.Identify the major differences between the traditional data warehouse and a real-time data warehouse, as was implemented at Continental. 5.What strategic advantage can Continental derive from the real-time system as opposed to a traditional information system? Additional information on Continental Airlines extracted from http://www.teradata.com/t/page/139245/ Continental scores with Teradata and Hyperion Continental Airlines, the world’s sixth largest airline, was recently named the â€Å"most admired global airline† by Fortune magazine. But Continental wasn’t always so highly acclaimed. In 1994, it ranked 10th out of 10 airlines assessed by U.S. Department of Transportation metrics. The airline knew little about its important customers, set fares and schedules using conventional industry assumptions, conducted contract negotiations blindly and fought fraud only after the damage was done. Continental’s turn around dramatically demonstrates how a data warehouse implementation and strategic use of BI—in this case, Teradata and Hyperion, respectively—can enable a company to attain competitive advantage. In fact, Continental’s earned it Gartner’s 2005 BI Excellence Award. Continental developed an enterprise data model that simplifies the joining of different subject areas to provide a single view of information for the BI environment. The model can support any query a user asks. Twenty-seven source systems feed the data warehouse, including schedules, inventory, reservations, OnePass (Continental’s frequent flyer program) and employee/crew payroll. More than 1,100 people use Continental’s Teradata/Hyperion-based system. The single, integrated, trusted view of the business has produced benefits ranging from better, faster decision-making to more than $500 million in cost savings, as well as incremental revenue from many initiatives that required BI information. The CRM and marketing team at Continental offers a conservative estimate of $150 million in revenue gains and $25 million in cost savings and fraud prevention.

Supply Chain of Amul

ARAVALI INSTITUE OF MANAGEMENT (An institution of Marwar Education Foundation) Term Paper on Supply Chain of AMUL Submitted to:Submitted by: Dr. Parikshit CharanSunil Kansara PGP II PGDM (S) Section A Roll No. 30 HISTORY Amul was formally registered on December 14, 1946. The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand and it was chosen because it was a perfect acronym for Anand Milk Union Limited. The Amul revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channeled towards economic prosperity Over five decades ago, the life of an average farmer in Kheda District was very much like that of his/her counterpart anywhere else in India. His/her income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Milk producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand – often milk went sour, especially in the summer season, as producers had to physically carry milk in individual containers. Private traders and middlemen controlled the marketing and distribution system for the milk. These middlemen decided the prices and the off-take from the farmers by the season. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throw-away prices. In this situation, the private trader made a killing. Moreover, the government at that time had given monopoly rights to Polson Dairy, which was run by a person of Parsi descent, (around that time Polson was the most well known butter brand in the country) to collect milk from Anand and supply to Mumbai city in turn (about 400 kilometers away). Another problem farmers faced was that in winter the milk output of buffaloes doubled which caused prices to fall down even further. India ranked nowhere amongst milk producing countries in the world in 1946. Gradually, the realization dawned on the farmers with inspiration from then nationalist leaders Sardar Vallabhbhai Patel (who later became the first Home Minister of free India) and Morarji Desai (who later become the Prime Minister of India) and local farmer, freedom fighter and social worker Tribhovandas Patel, that the exploitation by the trader could be checked only if they marketed their milk themselves. Amul was the result of the realization that they could pool up their milk and work as a cooperative Setting up of Kaira District Co-operative Milk Producers' Union In the early 40’s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterates’ farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word. However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk. These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union. However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt. , the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand. Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL. At the initial stage only 250 liters of milk was collected everyday. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs liters of milk everyday. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073 societies. With the financial help from UNICEF, assistance from the govt. of New Zealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Setting Up of Gujarat Cooperative Milk Marketing Federation In 1954, Kaira District Co-operative Milk Producers’ Union built a plant to convert surplus milk produced in the cold seasons into milk powder and butter. In 1958, a plant to manufacture cheese and one to produce baby food were added. Subsequent years saw the addition of more plants to produce different products. In 1973, the milk societies/district level unions decided to set up a marketing agency to market their products. This agency was the Gujarat Cooperative Milk Marketing Federation (GCMMF). It was registered as a co-operative society on 9 July 1973 COMPANY PROFILE THE TASTE OF INDIA, AMUL comes from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand and it was chosen because it was a perfect acronym for Anand Milk Union Limited. AMUL was formed under the dairy cooperative movement in India in 1946 The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand . The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good. Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere. Amul has been able to: ? Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its rotes and limitations, ? Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. ? Provide a support system to the milk producers without disturbing their agro-economic systems, ? Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers and ? Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense. Amul is an example par excellence, of an intervention for rural change. Organization structure It all started in December 1946 with a group of farmers keen to free themselves from intermediaries, gain access to markets and thereby ensure maximum returns for their efforts. Based in the village of Anand, the Kaira District Milk Cooperative Union (better known as Amul) expanded exponentially. It joined hands with other milk cooperatives, and the Gujarat network now covers 2. 12 million farmers, 10,411 village level milk collection centers and fourteen district level plants (unions) under the overall supervision of GCMMF. There are similar federations in other states. Right from the beginning, there was recognition that this initiative would directly benefit and transform small farmers and contribute to the development of society. Markets, then and even today, are primitive and poor in infrastructure. Amul and GCMMF acknowledged that development and growth could not be left to market forces and that proactive intervention was required. Two key requirements were identified. The first, that sustained growth for the long term would depend on matching supply and demand. It would need heavy investment in the simultaneous development of suppliers and consumers. Second, that effective management of the network and commercial viability would require professional managers and technocrats. To implement their vision while retaining their focus on farmers, a hierarchical network of cooperatives was developed, which today forms the robust supply chain behind GCMMF's endeavors. The vast and complex supply chain stretches from small suppliers to large fragmented markets. Management of this network is made more complex by the fact that GCMMF is directly responsible only for a small part of the chain, with a number of third party players (distributors, retailers and logistics support providers) playing large roles. Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low consumer prices supported by a low cost system. The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like – all through the village societies. DISTRIBUTION CHANNEL Amul products are available in over 500,000 PLUS retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. This practice is consistent with GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle operations Establishing best practices: A key source of competitive advantage has been the enterprise's ability to continuously implement best practices across all elements of the network: the federation, the unions, the village societies and the distribution channel. In developing these practices, the federation and the unions have adapted successful models from around the world. It could be the implementation of small group activities or quality circles at the federation. Or a TQM program at the unions. Or housekeeping and good accounting practices at the village society level. More important, the network has been able to regularly roll out improvement programs across to a large number of members and the implementation rate is consistently high. For example, every Friday, without fail, between 10. 00 a. m. and 11. 00 a. m. , all employees of GCMMF meet at the closest office, be it a department or a branch or a depot to discuss their various quality concerns. Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with a process check at the end to record how the meeting was conducted. Similar processes are in place at the village societies, the unions and even at the wholesaler and C agent levels as well. Examples of benefits from recent initiatives include reduction in transportation time from the depots to the wholesale dealers, improvement in ROI of wholesale dealers, implementation of Zero Stock Out through improved availability of products at depots and also the implementation of Just-in-Time in finance to reduce the float. Kaizens at the unions have helped improve the quality of milk in terms of acidity and sour milk. (Undertaken by multi-disciplined teams, Kaizens are highly focussed projects, reliant on a structured approach based on data gathering and analysis. ) For example, Sabar Union's records show a reduction from 2. 0% to 0. 5% in the amount of sour milk/curd received at the union. The most impressive aspect of this large-scale roll out is that improvement processes are turning the village societies into individual improvement centers. Supply Chain of Amul Consumers expect marketers to deliver products in the locations and forms they require. To meet expectations of such demanding consumers, alignments of our four Distribution Highways of Fresh, Chilled, Frozen and Ambient products were already made by introducing Project DIL. Subsequently, a major initiative was taken to enhance distribution network to smaller towns. About 1200 distributors in small towns across India were added during this initiative. Today about 3000 Distributors ensure availability of our products across India, whether it is in Leh or Lakshadweep, in Kutch or Arunachal. Simultaneously, to augment fresh milk distribution in various markets of India, approximately 1400 exclusive Milk Distributors have been inducted. ? AMUL has the largest cold chain network in India (i. e. 18000 refrigerators) as compared to any other company. The chemical components of milk are water, SNF and solids. Milk is very perishable product so it has to be consumed within 24 hours. In order to avoid wastage AMUL converts the milk in to SNF and milk solids by evaporating the water, which comprises up to 60-70% of milk contents. This is possible only if the distribution channel right from the producer to the consumer is well organized. It will be surprising to know that AMUL makes even the ‘Sarpanch’ to eat pizza i. e. it supplies pizzas even to rural market. ? Last year, theye divided the retail market into 14 specific segments to achieve further distribution efficiency. This year our focus was on inducting distributors having expertise in servicing such specific market segments. This initiative is yielding results by way of ensuring wider availability of our product range. ? The role of distributors in our business process has never been more diverse or more important, as it is today. As a matter of fact, we consider our Distributor to be the real â€Å"Marketing Manager† of our organization. To enhance business performance of our Distributors, a workshop on Marketing and Sales Management was designed in collaboration with a premier business school. The objective of the entire initiative was to upgrade the knowledge of our Distributors in terms of contemporary Business Management Practices, so that they can perform well not only as our business partner but also as Marketing Managers. During the year, 659 Distributors have undergone this programme in 39 locations. Cold Storage is an extremely essential component n the Federation’s distribution process. Unfortunately, availability of efficient cold storage facilities is grossly inadequate in our country. To cope up with the increasing need of suitable cold stores closer to our markets, we have continued our endeavour of creating the Federation’s own cold stores this year in various locations acr oss the country. We now own 24 state-of- the art cold rooms of different sizes. ? To get an exposure to our cooperative structure, our culture as well as operational systems and processes, every year we invite our distributors, major retailers and other business partners to Anand, for Amul Yatra. So far, about 7000 Distributors and other business partners have participated in this Amul Yatra. ? Over recent years, the Federation has successfully introduced new product lines. This year, in order to leverage their distribution network strengths, to optimize market supervision expenditures, to achieve increasing efficiency while keeping the distribution infrastructure lean, focused and productive, the Federation amalgamated its different distribution networks. Today, they operate an efficient distribution infrastructure consisting of 46 sales offices, catering to 3,000 distributors and five lac retailers. Almost every Federation stockist has visited Anand to participate in a unique programme called ‘Amul Yatra'. During this programme, stockists are exposed to the Federation Philosophy, the culture of Cooperation, as well as operational Systems and Processes. The Federation has also invited distributor's salesmen from all over the country to Anand for a training program focused on the Federation's philosophy and developing their selling skills. AMUL is a dairy cooperative in the western India that has been primarily responsible, through its innovative practices, for India to become the world’s largest milk producer. The distinctive features of this paradigm involves managing a large decentralized network of suppliers and producers, simultaneous development of markets and suppliers, lean and efficient supply chain, and breakthrough leadership. Every day Amul collects 447,000 litres of milk from 2. 12 million farmers , converts the milk into branded, packaged products, and delivers goods worth Rs 6 crore (Rs 60 million) to over 500,000 retail outlets across the country. To implement their vision while retaining their focus on farmers, a hierarchical network of cooperatives was developed, this today forms the robust supply chain behind GCMMF’s endeavors. The vast and complex supply chain stretches from small suppliers to large fragmented markets. Management of this network is made more complex by the fact that GCMMF is directly responsible only for a small part of the chain, with a number of third party players (distributors, retailers and logistics support providers) playing large roles. Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low consumer prices supported by a low cost system of providing milk at a basic, affordable price. THE BUSINESS MODEL From the very beginnFng, in the early 1950s, AMUL adopted the network as the basic model for long-term growth. †¢ The network explicitly includes secondary services to the farmer-suppliers. †¢ Several of the entities in the network are organized as cooperatives linked in a hierarchical fashion. Customers: In comparison with developed economies, the market for dairy products in India is still in an evolutionary stage with tremendous potential for high value products such as ice cream, cheese etc. The distribution network, on the other hand, is quite reasonable with access to rural areas of the country. Traditional methods practiced in western economies are not adequate to realize the market potential and alternative approaches are necessary to tap this market. Suppliers: A majority of the suppliers are small or marginal farmers who are often illiterate, poor, and with liquidity problems as they lack direct access to financial institutions. Again, traditional market mechanisms are not adequate to assure sustenance and growth of these suppliers. Third Party Logistics Services: In addition to the weaknesses in the basic infrastructure, logistics and transportation services are typically not professionally managed, with little regard for quality and service. In addition to outbound logistics, GCMMF takes responsibility for coordinating with the distributors to assure adequate and timely supply of products. It also works with the Unions in determining product mix, product allocations and in developing production plans. The Unions, on the other hand, coordinate collection logistics and support services to the member-farmers. In what follows we elaborate on these aspects in more detail and provide a rationale for the model and strategies adopted by GCMMF. Simultaneous Development of Suppliers and Customers: From the very early stages of the formation of AMUL, the cooperative realized that sustained growth for the long-term was contingent on matching supply and demand. The member-suppliers were typically small and marginal farmers with severe liquidity problems, illiterate and untrained. AMUL and other cooperative Unions adopted a number of strategies to develop the supply of milk and assure steady growth. First, for the short term, the procurement prices were set so as to provide fair and reasonable return. Second, aware of the liquidity problems, cash payments for the milk supply was made with minimum of delay. This practice continues today with many village societies making payments upon the receipt of milk. For the long-term, the Unions followed a multi-pronged strategy of education and support. For example, only part of the surplus generated by the Unions is paid to the members in the form of dividends Managing Third Party Service Providers: Unions focused efforts on these activities and related technology development . The marketing efforts were assumed by GCMMF. All other activities were entrusted to third parties. These include logistics of milk collection, distribution of dairy products, sale of products through dealers and retail stores, some veterinary services etc. It is worth noting that a number of these third parties are not in the organized sector, and many are not professionally managed. Hence, while third parties perform the activities, the Unions and GCMMF have developed a number of mechanisms to retain control and assure quality and timely deliveries. This is particularly critical for a perishable product such as liquid milk. Coordination for Competitiveness Coordination is one of the key reasons for the success of operations involving such an extensive network of producers and distributors at GCMMF. Some interesting mechanisms exist for coordinating the supply chain at GCMMF. These mechanisms are: Inter-locking Control The objective for developing such an inter-locking control mechanism is to ensure that the interest of the farmer is always kept at the top of the agenda through its representatives who constitute the Boards of different entities that comprise the supply chain. This form of direct representation also ensures that professional managers and farmers work together as a team to strengthen the cooperative. This helps in coordinating decisions across different entities as well as speeding both the flow of information to the respective constituents and decisions. Coordination Agency: Unique Role of Federation Its objective is to ensure that all milk that the farmers produce gets sold in the market either as milk or as value added products and to ensure that milk is made available to an increasingly large sections of the society at affordable prices Supplier Enhancement and Network servicing Their objective is to ensure that producers get maximum benefit and to resolve all their problems. They manage the procurement of milk that comes via trucks & tankers from the VSs. They negotiate annual contracts with truckers, ensure availability of trucks for procurement, establish truck routes, monitor truck movement and prevent stealing of milk while it is being transported. GCMMF’S SUPPLY CHAIN DISTRIBUTION CHANNEL Amul products are available in over 500,000 PLUS retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. This practice is consistent with GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle operations Establishing best practices A key source of competitive advantage has been the enterprise's ability to continuously implement best practices across all elements of the network: the federation, the unions, the village societies and the distribution channel. In developing these practices, the federation and the unions have adapted successful models from around the world. It could be the implementation of small group activities or quality circles at the federation. Or a TQM program at the unions. Or housekeeping and good accounting practices at the village society level. More important, the network has been able to regularly roll out improvement programs across to a large number of members and the implementation rate is consistently high. For example, every Friday, without fail, between 10. 00 a. m. and 11. 00 a. m. , all employees of GCMMF meet at the closest office, be it a department or a branch or a depot to discuss their various quality concerns. Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with a process check at the end to record how the meeting was conducted. Similar processes are in place at the village societies, the unions and even at the wholesaler and C&F agent levels as well. Examples of benefits from recent initiatives include reduction in transportation time from the depots to the wholesale dealers, improvement in ROI of wholesale dealers, implementation of Zero Stock Out through improved availability of products at depots and also the implementation of Just-in-Time in finance to reduce the float. Kaizens at the unions have helped improve the quality of milk in terms of acidity and sour milk. (Undertaken by multi-disciplined teams, Kaizens are highly focussed projects, reliant on a structured approach based on data gathering and analysis. ) For example, Sabar Union's records show a reduction from 2. 0% to 0. 5% in the amount of sour milk/curd received at the union. SELECTION, MOTIVATION & EVALUATION OF CHANNEL MEMBERS Selection: The company takes into consideration a host of factors while selecting the channel members. This is because GCMMF believes that selection of channel members is a long run decision & the rest of the decision regarding the supply chain depends upon the efficiency & coverage by the channel members. The following are the host of factors considered by the company in selecting the channel members: ? Authentication is required by the regarding the identity of the channel members, which includes the name & address, photograph of the location. ? Proof of solvency which requires name & address of the channel member’s bankers ? Safety of the inventory, which means that the distributor/ dealer should et the stock of the company insured. ? Inventory or the perishable goods kept by the distributor/ dealer should be in good condition which means a detail of storage space & Refrigeration facility is to be provided. Refrigeration system should have deep freezers, cold room & walk in coolers. ? Details of the delivery vehicle, which includes Light Commercial Vehicles, Matador, 3 Wheel er Van, Tricycle Van & Hand/Push cart. The number & model of each of the vehicle needs to be furnished to the company. ? GCMMF acknowledges the fact that it needs to be sensitive to the market demands. For this it requires that a number of salesmen needs to be present on the field. The salesmen too are divided into various categories like the Field salesmen & Counter salesmen. Also the details of Clerical Staff & Mazdoors are to be provided. The technical competence of the salesmen needs to be mentioned ? Details of the product kept of other companies have to be provided. The annual sales of these products too have to be mentioned. Also details of complementary products & product lines need to be mentioned. ? Dealers of the company must carry a good reputation. This is due to the fact that the company believes reputation of the dealer affects the clientele. ? Market coverage by the distributors needs to be defined which includes details of Geographic coverage & Outlets per market area. ? The company also requires the dealers to furnish any Advertising & Sales initiative undertaken by them on behalf of the company. Observation ? The company’s strength is in its procurement and not the distribution even they know this, as this is the industry’s main problem. Other companies fail to replenish demand due to lack in procurement of raw milk. Amul has loyal cooperatives that provide milk only to them, over time the relationship of trust has built up with these people that amul leverages now. ? Transport channel is another strength as the transporters have grown with the company overtime the bonding with them enables the company to give least margins when it comes to the distributors in the industry, lowering the costs. ? The company believes that there is an ongoing demand in the market and therefore no promotions are needed to increase the sales, also the fact this would affect the cost of the product the company doesn’t undertake many promotion schemes. The not being a profit driven organization, is able to provide products at the least price in the industry, and is able to give least channel margins as the channel members earn through volumes and not through high margins. ? The company is enabled to push its new products into the market by hooking them onto the fast moving products like Amul butter; they force the channel members to carry the new products as well. Comments and Suggestion: ? Amul should go in for exclusive outlets in at least all the shopping malls coming up these days and any location where footfalls are large in number. The advantages of this channel will be: Full range display Easier to promote new products Easy to push impulse purchase products Brand building will be facilitated ? Pushcarts should be increased in number in order to increase the market reach this can provide with e very effective channel for ice creams and flavored milks. ? Trade promotion should be formulated for newly launched products instead of just tagging them onto best sellers. ? The company should start a home delivery where a particular household will order full range of products required by it over a period of time. For this the company could provide a deliveryman with cycle to reach the different houses. ? In order to motivate the channel members it is also very essential for the company to increase the margins for the hard selling items e. g. Amul dahi where it faces competition from Nestle & Mother dairy. ? In order to remain sensitive to market demand, it is essential for the company to place additional salesmen on the field since the brand as such commands a high demand in the market but fails to match it with the supply. [pic][pic][pic]