Monday, January 27, 2020
Jeffersonian Republicans and Federalists
Jeffersonian Republicans and Federalists The Jeffersonian Republicans are often categorized as strict constructionists who were opposed to the broad constructionism of the Federalists, but to some extent this generalization of the Madison and Jefferson parties were inconsistent. In the form of the Louisiana Purchase, the Embargo Act, and the War of 1812, the Jeffersonian Republicans can be seen as broad constructionalists, the opposition of the war, in the form of a two-thirds majority to declare war, and Madisons vetoing of the Internal Improvement Bill can make the Federalists seem as if they were the strict constructionalists. Through an analysis of these topics, it is easy to see that both parties crossed their political lines to some degree throughout this time period. In the election of Thomas Jefferson, the world was about to experience a new era of national and political authority. The ideals of Thomas Jefferson were very different from the previous President; Jefferson sought a peaceful and constitutionally strict way of life for his political party. As Jefferson began his presidency he claimed that his election was a recovery of the original ideals of the American people. Jeffersons true ideology was one that believed in a small, weak central government, and that a small central government was the only way to flourish in these times. In truth, Jefferson had felt that the safety, and health of the nation, that he now ran, was somehow inversely related to the power the federal government had. In the letter to Gideon Granger, one of Jeffersons future cabinet members, he wrote on the note of the preservation of the constitution of America, and the ideals, and principles that created said constitution. Our country is too large to have all its affai rs directed by a single government. This was unquestionable proof that Jefferson felt that a smaller central government would be more beneficial in the eyes of the nations domestic policies and issues, as for the foreign policies, that stronger central power may have been a more proper means to follow. Thomas Jefferson was a man of a very unique sense of religion. Throughout his life as public figure, Jefferson would see that his lack of religious ground would prove to be a major threat to his party, for instance, his idea of a complete separation of church and state. The letter sent to Danbury Baptists, proves that Jefferson thought that the separation of church and state was something that Jefferson saw as a crucial point to help further the Nation. He made such statements as a wall of eternal separation which show that he felt that there was no reason for the Church to be intertwined with the government of the nation. Jefferson would also write a letter to Samuel Miller, a Presbyterian minister, that would further the religious grounds of Thomas Jefferson. He would say that he believes that there should be now binds between the United States constitution and the religious institutions, their doctrines, or exercises. A very important measure of Jeffersons true character comes from the Louisiana Purchase. While this is seen as one of, if not the most notable achievement of Jefferson, there are some missteps in logic. The idea that there should be no change in the Union was a moral supposedly followed by Jefferson. Jefferson would go on to say that this change should be proven true by a constitutional amendment, but since the process of amendment was slow, Jefferson basically said that there was no time for the ideas of strict constructionalism, the same ideals that his party and his ideals were based onà ¢Ã¢â ¬Ã ¦ this showed the people of his party that there was some elasticity with this idea of strict constructionalism. All of the hype, all of the popularity that Jefferson had gained throughout his first term as president soon passed as he began his second term. Jeffersons second term was much less bountiful in the eyes of political and national advancement. One of the most disappointing ordeals originated from the Napoleonic wars, the naval blockades that were rampant in the Atlantic and Caribbean waters. These blockades would devastate the American trade companies and would pressure the US to take sides in a war that was not even ours. The response to this naval war was the blockade was the Embargo of 1807. This embargo did not do much for the colonies except virtually close down every American port to all foreign countries. To enforce this act, the use of the coercive powers that Jefferson opposed were needed, i.e., a strong central government which went against the principles of Jefferson. The political cartoon, made by Alexander Anderson in 1808 depicted a snapping turtle biting the nether regi ons of a man attempting to smuggle American goods to a British ship, with the word Ograbme written in an air bubble. (Ograbme was a political cartoonists way of saying Embargo.) The creator of this cartoon is none other than a Federalist portraying the views of the distaste towards the Embargo Act. The feeling that came from the violation of his own principles rang rampant and spread like wild fire throughout the country. The Federalists used this opportunity to mudsling the president and to proclaim this Embargo unconstitutional, and used it as a springboard to elect Madison as president. James Madison, the president who came after Jefferson, was seen as the only man that could carry out the ideals of the Federalists in this time period. The first thing that Madison took on as president was the repeal of the Embargo Act. The time that Madison was president, was one controlled by the continued tension between the USA and the French and British governments. The Embargo Act was soon changed to the Non-Intercourse Act, which was a way to limit the trade to the European powers, but America soon realized that it had no effect on either Great Britain or France, this act was soon repealed, and trade among the three began again. In Madisons effort to find a new path to peace with the European nation through commercial retaliation, it became increasingly more impossible to do so. With the new War Hawk elected into the seat of Congress, and the British arrogant assaults on American ships, Madison asked for a declaration of war in June 1812. Madison, who was a devoted republican, had a very tough time building and manning a formidable navy and army during this time of peace. Because of the Federalists up in New England, who had their trade basically destroyed, the United States was driven into war. This army was extremely weak and Madison needed a way to increase it. In Websters speech on a conscription bill to the House of Representatives, he said that the administration under Madison did not adhere to the ideals of strict constructionalism when they forced men to join the war for the Government. In 1814 both of the Americans and the British grew tired of war and signed the Treaty of Ghent, which ultimately brought peace and a new hope to the war stricken countries and insured independence among the Americans. The War of 1812 was one that produced economical and political effects. Since the threat of disunion coming to an end, westward expansion was on the way, which also brought a sense of new confidence to the nation as per security. Madison had felt that he had needed to respond to this new nationalism. The Federalist Party had seen their imminent demise because of the opposition of war that they had shown. Although the Jeffersonian Republicans saw this downfall as an advantage to win the seat again, there was an internal weakness among the republicans. In actions to stimulate the economy, Madison threw out some of his own Republican ideals about weak government in favor that he so strongly discouraged and opposed years ago. By 1815, Madison had developed a new wave of domestic programs to better the nation. One major recommendation was a charter for a National Bank, and a tariff to help protect small industries that were just beginning to prosper. In a speech to the House of Representa tives John Randolph implied that Madison had given up all of his republican ideals and motives to emulate a more federalist point of view. Madisons actions did not adhere to his original ideas of government. Madison would also recommend the federal support of roads and canal making. This funding of roads and canals went against what Madison would have agreed to in previous times. The last major act as president was the vetoing of the Internal Improvements Bill of 1817. In Madisons message to congress vetoing and Internal Improvements Bill, Madison said, The power to regulate commerce among several states cannot include a power to construct roads and canals Even though Madison set aside many of his political policies and republican ideals, he would still oppose internal improvements. Jefferson and Madison, although both were destined to follow and obey the ideals of the Jeffersonian Republicans, they were both compelled to act accordingly to the problems at hand, even if that meant compromising some of their own beliefs. In the years 1801 to 1807, Jefferson and his policies would emulate the true republican priorities, meaning that federal powers would be decreased. By 1807 Jefferson contradicted many of his prior beliefs about a small Central Government for the future of the nation. From 1808 to 1807 domestic, political, and nation threats were on the door steps of Madison, and although he seemed to veer away from his true, original ideology the he initially spoke of, he did it for the future of the nation. Both men shown here, exhibited a true conflict between their ideas and their practices of said ideas.
Sunday, January 19, 2020
The Seagram Building Essay -- essays research papers fc
The Seagram Building is prime example of the international style of design in the 20th century. The building is a true landmark of the city having an open plaza at the base of the building with high ceilings, floor to ceiling tinted windows and bronze mullions. Its imperious design, set in a plaza with fountain, was imitated many times and became an icon of North American corporate design. Mies is known as the father of the steel and glass structure. Mies designed many buildings during his life however none of the would be as popular and famous as the Seagram Building. In real estate and architecture, some dreams need a lot of staying power to get realized. The Seagram Building is the realization, some three decades late, of Mies van der Rohe's dream of a glass-covered, high-rise office tower that would provide a stunning monument to the International Style's faith in simplicity and clarity. The Seagram building is the prime example of Mies' masterful use of steel. The bronze sheathed skyscraper soars thirty-eight stories high from its 90-foot deep pink granite plaza. Volume is everywhere apparent in this building, from the great columns that bring the structure to the ground to the welded bronze mullions holding the glass sheets in place. As enormous of a project this was, great attention was paid to purity and precision of design, following the fundamentals of the style. Details from doorknobs to stainless steel furniture throughout the building, spacious layout and functional use of all elements from interior office space to shower rooms, the Picasso backdrop signaling the entrance, the cantilevered portico entrance, and the luminous ceiling, make this one of the worlds most elegant skyscrapers. More importantly, pertaining to the International Style, Mies has expressed his elegant use of materials, and technological perfection throughout the building. Mies' well known theory of ââ¬Å"less is moreâ⬠is apparent by the spaciousness and functional quality of the Seagram building; everything serves a purpose, either for aesthetic appeal or functionality. ââ¬Å"Less is moreâ⬠is a concept used throughout the architectural world today. ââ¬Å"Mies van der Rohe stands as a great moral force of the International Style. The essence of architecture, to Mies, lies in the expression of structure. And his precise, sophisticated, and consistent style of architecture sets an exam... ...ir-conditioning (HVAC) equipment. This is more a conservative than a cool corporate environment, energized by the warmth of its bronze color and the rhythmic repetitive pattern of its fenestration. ââ¬Å"Like a well-bred lady who is confident enough not to wear the emperor's new clothes, the Seagram Building has a sophisticated arrogance that can wilt trendy fashions with the authority of its posture and demeanor.â⬠I had a chance to visit this building and as I stood under the edge of the building looking upward I was amazed by the beauty and precision, and stunned by the size and splendor. Inside I could not get past the entrance and a guard told me I wasnââ¬â¢t allowed to take pictures. The interior with its light colored marble walls and double height ceiling is breathtaking, I stood there and I felt a tremble run through my body. I can honestly say this is one of my favorite buildings in New York. Bibliography Glancey, Jonathan. Twentieth Century Architecture. London: Carlton Books Limited,1998. Schulze, Fraz. The Seagram Building. NJ: Princeton Architectural Press. 1999. http://www.comkey.net/daniel/seagram.htm http://www.greatbuildings.com/buildings/Seagram_Building.html
Saturday, January 11, 2020
Harrison Products Essay
Harrison Products Inc. (HPI) is a global manufacturer of molded plastic products and metal products that are used in the auto industry, food and beverage industry (containers), and in a variety of other products and packaging materials. HPI has several manufacturing plant located world-wide, generally in locations convenient to the companyââ¬â¢s most significant customers. The present case considers one of HPIââ¬â¢s products, a one gallon metal can container used for paint and other chemical products. The product is produced in two U.S. locations, Los Angeles, CA, and Youngstown, OH. These plants produce several million of these cans each year. The competitive environment for HPI is challenging. Competitors in all parts of the world challenge HPI on cost, which is the primary order-winning factor in the business. All HPI customers expect very high quality and prompt service, so competition on price and reliability in meeting delivery dates are critical to its competitive success. Operating Data and Strategy HPI has focused its production of the one gallon metal cans in the two plants, in Los Angeles and Youngstown, Ohio. The summary information in Exhibit 1 shows the plant capacity, normal production, price and cost information. Currently, management believes that production costs are driven by volume; managementââ¬â¢s goal is to meet competitive cost pressures by increasing volume and improving efficiency to bring costs down. For this reason, product costs are based on volume, as illustrated in Exhibit 1. The unit cost for the Los Angeles plant is $1.10, while the unit cost in the Youngstown plant is $1.00. The cost difference reflects the higher facilities cost at the Los Angeles plant, which is the newer of the two plants. The Los Angeles plant has similar equipment and manufacturing flow design to that of the Youngstown plant, but a key difference is that the Los Angeles plant was designed to be more efficient for smaller job (batch) sizes; the equipment and plant lay-out are con sistent with greater speed inà processing smaller jobs. The decision to design the Los Angeles plant in this way reflected the smaller orders that were generally received by the Los Angeles plant. See Exhibit 2 for a sample of the some of the jobs at the two plants; the exhibit shows a representative sample of 28 jobs for Los Angles and 41 jobs at the Youngstown plant, showing the quantity in each job (job size) and the estimated minutes per 1,000 units for that job. The number of minutes per 1,000 units is a commonly-used measure of job performance at HPI and is called ââ¬Å"runtime.â⬠Product Costs HPI includes manufacturing costs into three main categories. First, there is materials cost that includes the metal and other materials necessary in the production of the cans. These materials are considered direct materials and are $0.40 per unit at each of HFIââ¬â¢s plants. The second category is operating costs which include labor, supervision, some materials used in machine maintenance and repair, materials receiving and stocking, and related costs. Labor costs include runtime labor, setup labor and downtime labor. Operations costs are considered indirect costs and the costing method used is to apply these costs to product based on units of output, as noted above. The two plants have the same per unit operating cost of $0.50. The third category, facilities costs, includes equipment and the plant facility. Because Los Angeles is the newer plant, these costs are higher for Los Angeles, at $0.20 per unit relative to the Youngstown plant, where the facilities cost is $0.10 per uni t. Required: 1.Using the companyââ¬â¢s current costing system, calculate the manufacturing cost and operating margin (price less manufacturing cost) for each of the jobs in Exhibit 2, for both the Los Angeles and Youngstown plants. 2.Assume that 20% of operating costs are due to setup costs and that the remainder are runtime costs. HFI is considering an activity-based approach which would apply setup costs to each job; each job would be applied the same amount of setup cost. Calculate the manufacturing cost and operating margin for each of the jobs in Exhibit 2, for both the Los Angeles and Youngstown plants. 3.Assume as above that 20% of operating costs are due to setupà costs and that the remainder are runtime costs. Now, assume that HFI is considering an activity-based approach which would recognize that each setup requires time and material that is partly proportional to the size of the prior job. That is, the part of setup that involves clean-up and preparation of the machine for a new job is longer after a relatively long job than it is for setups that follow a relatively short job. HFI now plans to apply setup costs so that one-half of the setup costs would be applied equally to each job and the remainder of setup costs would be applied based on the number of units in the job. Calculate the manufacturing cost and operating margin for each of the jobs in Exhibit 2, for both the Los Angeles and Youngstown plants. 4.Interpret briefly your findings in parts 1,2 and 3 above. Do you support the setup cost application approach in (3) above? Why or why not? What approach do you think would be preferable? 5.Using analysis based on charts, correlation or regression analysis or other means, study (a) the relationship between runtime and job size at both plants, and (b) examine how this relationship differs between the two plants. What are the implications of these relationships, and how they differ between plants, on (a) product costing, and (b) manufacturing strategy?
Friday, January 3, 2020
The Canadian Constitution And The Minimum Wage - 1510 Words
INTRODUCTION The Canadian Constitution is the base for every subject that affect Canadian citizens, permanent residents and temporary residents as well directly. The Canadian Constitution outlines many topics including how the government should deal with people in the country and the way that people must deal with the government. As any other constitution, being a part of the country requires rights and duties, which the Constitution disposes in its content. It wouldnââ¬â¢t be different for the minimum wage. The Canadian Constitution sets how this matter will be treated and specify that each province should has its own responsibility for enacts the minimum wage subjects. Minimum Wage can be a subject of high level of discussions since it affects lots of people and there are multiple factors that affect how the minimum wage is implemented, measured, and fair. From a basic perspective, the factors that are included in minimum wage are not well defined as critical factors, but employability and poorness are some of the main factors that are assessed when the government of each province decide to increase the minimum wage of the province. During all the history of minimum wages a bunch of studies were made to analyse the effects that the minimum wage changes can bring to employeeââ¬â¢s life. In the oldest studies, the institutions that worked on it couldnââ¬â¢t find a significant change on the employees, job searches and employeeââ¬â¢s behaviours. The only fact that was noticed was theShow MoreRelatedThe Constitutional Law Of The Canadian Charter Of Rights1178 Words à |à 5 Pagesgovernment ( whether legislative, executive, or administrative) fall under the constitution.The constitution has precedence over all of the other legal means.â⬠Unless the actual recruitment and selection practices are challenged in a Human Rights Tribunal or court, there is no actual direct effect on recruitment and selection as stated in the text. This means that the Canadian Human Rights Act states that all Canadians have the right to equality, equal opportunity, fair treatment, and an environment freeRead MoreHuman Resource Management Essay1077 Words à |à 5 Pageslegislation. Constitutional law as a whole is the supreme law of Canada and has precedence over all other legal means; it consists of a series of Acts and orders passed since 1867 by the British and Canadian Parliaments. 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Employers have a fixedRead MorePublic Law And Private Law1555 Words à |à 7 Pagesincluding the government, police and anyone in a position of authority. Over the course of the unit, we have learned about many different topics in relation to Canadian Law; the 5 main topics I chose to represent in this collage are Public vs. Private Law, The Historical Sources of Law, the ââ¬ËTriangleââ¬â¢, Rules vs. Laws, and Jurisdiction. Canadian Law can be divided into 2 sections; public law and private law. Public law deals with issues that affect the general public, or society as a whole. To representRead MoreThe Canadian State Of Canada Essay1375 Words à |à 6 PagesThe Canada that we know today was formed from the 1867 Constitution Act which gave them some separation from Great Britain. Initially the country was made of 4 provinces: Ontario, Quebec, Nova Scotia, and New Brunswick. The capitol of Canada is Ottawa which is in Ontario province, the largest city is Toronto. Canada is now comprised of ten provinces and has 36 million people throughout these provinces. The country is 3.855 million square miles making is the second largest country in the world. OverRead MoreEquality Between Women And Women1673 Words à |à 7 Pagespath as Canada. The Womenââ¬â¢s Suffrage Movement has given women the right to vote, and the Persons Case has given women the right to be appointed to Senate. The Famous Five were the women who lead the Persons Case, as well as many other victories. The Canadian Labour Movement has helped attain equality in workplaces, and the gender pay gap is the inequality difference that men and women make for the same work. Gender stereotypes are overlooked generalizations of a group of people based on gender. TheseRead MoreWomen s Rights Of Canada1640 Words à |à 7 Pagesworkplaces, schools, and everyday life. Due to the Famous Five who lead the Persons Case that stated women as official persons, and many heroic individuals who lead the Womenââ¬â¢s Suffrage Movement, women now have more opportunities than ever before. The Canadian Labour Movement has helped improve many citizensââ¬â¢ careers including those of women, protecting them from discrimination, violence, and harassment at work. Saskatchewan feminism has followed a similar path to Canada concerning womenââ¬â¢s rights, mostRead MoreHistory Of Union And Human Resources1205 Words à |à 5 PagesIntroduction The purpose of the union is ensuring the labor can get their rights, such as minimum wages, working environment, and pensions and so on. The union supports labor that when a company gets profit, labor can get their reasonable benefit back. The trend of an organization is management in the twenty-first century. A company thinks an employee is part of assets in the organization. Therefore, the Human Resource Management is more valuable than the union to manage the employee. History ofRead MoreEssay on Womens Rights in Canadian History1838 Words à |à 8 Pagesgave way to change, allowing women to work and eventually allowing them to vote. The feminist movement has made drastic progress since the war. Today women are seen as equal and have the right not only to vote, but to be educated. In 1977 the Canadian Human Rights Act ensured that women could no longer be discriminated based on their sex, race, religion or sexuality. The act specified that there must be ââ¬Å"equal pay for work of equal valueâ⬠. It is important to educate the youth on the historicalRead MoreMagna International Inc. Essay3905 Words à |à 16 Pageskey principles in their responsibilities within their ââ¬Å"Corporate Constitutionâ⬠and ââ¬Å"Magna Employeeââ¬â¢s Charterâ⬠. Within these two statements of their purpose, Stronach developed a philosophy for Magna of which the company wants to be known as ââ¬Å"a Fair Enterprise Corporationâ⬠. Abiding that philosophy, Stronach stresses that this includes not only to the management, but also to shareholders and employees within the Corporate Constitution and Employee Charter. 2.2 Magnaââ¬â¢s Employee Charter It appears
Thursday, December 26, 2019
How Old Is Too Old For Elderly Cardiac Surgery Essay
ESTHER MURIUKI WEST COAST UNIVERSITY ISSUES AND TRENDS: NURS 44O CURRENT ISSUES TITLE: How old is too old for elderly cardiac surgery? Are we pushing the limits? The purpose of this paper is to analyze if there is any improvement, post-operative complications, mortality and related factors of elderly undergoing cardiac surgery. The debate whether or not we are pushing the limits is still questionable because of the complications associated with these invasive surgeries and whether or not if itââ¬â¢s a money game. The growing numbers of the elderly patients enjoy a prescription drug benefit, access to artificial knee and hip surgery, and life-saving cardiovascular interventions that were undreamed of a half-century ago. The growing number of the elderly patient has a direct impact on nursing practice. The issue ofâ⬠baby boomersâ⬠having an increased life expectancy may have jobs security for the nurses in future as evidenced by multiple improvements in cardiac surgery in older population. The aging of the baby boomers is expected to produce a plethora of new nursing jobs, which could lead to higher wages, greater job security, an d greater variety in types of work (Page, 2015). The massive baby boomer generation, making up almost one-third of the population, began to turn age 65 in 2011. By the same token, this deluge of new patients could put new strains on the nursing workforce, possibly leading to higher patient-to-nurse ratios. (Page, 2015). Although the proportionShow MoreRelatedResearch on Technology in the Medical Field1487 Words à |à 6 Pagesthat may be particularly beneficial to medicine such as 3D printing, electronic health records, and robotic surgery. 3D printing can change medicine by being able to print bones, organs, and custom hearing aids. 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Now in this paper it will be telling you the history of anesthesia, by who found it and when they found it. Then after that it will be telling you the progression of anesthesia, by how its better than the older anesthetics. Like it can now relieve stressRead MoreNursing : A Important And Interesting Job1798 Words à |à 8 Pagesimportant and interesting job to humankind. This profession has been around and helping people for many years going way past the Civil War; nursing is also noticed in the Bible. Nurses can be found in many different places including Hospitals and Elderly Homes. In this paper there is going to be information about the history of nursing, all the types of nursing, also very important people in nursing such asnamed Clara Barton, Christiane Reimann, and Florence Nightingale. Also were nursing can beRead MoreMedical Technology And Health Care Professionals1791 Words à |à 8 Pageshave. Throughout the years, medical technologies have been developed in order to benefit the lives of not only health care professionals, but also the lives of other people. Medical technology in broad terms refers to the equipment, procedures, and how the care is given. These changes in technology can provide an efficient and less risky process in order for these professionals to do their job. Technologies such as artificial intelligence, brain computer interfaces, hi-tech imaging, heart pacemakerRead MoreHesi Practice31088 Words à |à 125 Pagesadvice on how to deal with his alcohol addiction. The nurse should tell the client that the only effective treatment for alcoholism is A. psychotherapy. B. total abstinence. C. Alcoholics Anonymous (AA). D. aversion therapy. 8. A 23-month-old child is brought to the emergency department with suspected croup. Which assessment finding reflects increasing respiratory distress? A. Intercostal retractions. B. Bradycardia. C. Decreased level of consciousness. D. Flushed skin. 9. A 20-year-old mother ofRead MoreCase Study Es say33967 Words à |à 136 Pagesreserved. 1 PART 1 MEDICALïš ºSURGICAL CASES 1 Cardiovascular 3. How do angiotensin-converting enzyme (ACE) inhibitors, such as enalapril (Vasotec), work to reduce heart failure? (Select all that apply.) ACE inhibitors: a. prevent the conversion of angiotensin I to angiotensin II. b. cause systemic vasodilation. c. promote the excretion of sodium and water in the renal tubules. d. reduce preload and afterload. e. increase cardiac contractility. f. block sympathetic nervous system stimulation to
Tuesday, December 17, 2019
Educational Funding Levels For Public Schools Essay
The formula budgeting approach is the method most commonly used by states, including Georgia, to determine K-12 educational funding levels for public schools (Green, 2014). This approach utilizes a fixed method to allocate funds and, as maintained by Green (2014), is intended to provide an objective, efficient, and equitable manner to distribute state education funds to local schools districts. However, as observed with Georgiaââ¬â¢s own funding formula, this budgeting approach falls short when full funding is not provided. As a result, funding inequities do occur as local sources of revenue vary across the state. Established by the Georgia legislature in 1985, the Quality Basic Education (QBE) funding formula was designed to equitably provide K-12 educational services for Georgia students (Suggs, 2015). The appropriation of QBE is to provide formula funds to school systems based on full time equivalent (FTE) students in grades K-12 as outlined in O.C.G.A. 20-2-161 (Governorââ¬â¢s Budget Report, 2015). The funding formula is comprised of three broad areas that are combined to fund and equalize funding from state and local revenue sources; the formula is QBE earnings plus any categorical grants plus the equalization. (The Basics of Quality Basic Education (QBE) Funding, n.d). Furthermore, the formula is calculated based on two components: total enrollment and student characteristics. It is based upon FTE student counts across nineteen instructional programs (FY 16 GA QBEShow MoreRelatedEssay on Inner City School Systems686 Words à |à 3 Pages The school system in America has long been an issue of discussion and debate amongst people everywhere. The discussions and debates often stem from evaluating the current educational system in order to determine if significant social issues, including increasing regional poverty and declining literacy rates in specific urban regions are related to economic differentiations in the educational system. Many policy analysts have considered the issue of educational funding allotments in order to determineRead MoreThe Democratic Party And The Republican Party1607 Words à |à 7 Pagesfocused on educational funding in the United States. The parties have different views on the education system of the country, but both agree there needs a change in some way. Democrats favor more progressive approaches to education, such as implementing the Common Core System, while Republicans tend to favor more conservative changes such as longer hours and more focused programs to better educational resources. In Virginia, Republicans from 1990 to 2013 worked to provide better educational funding moreRead MoreFunding Programs For Public Schools1400 Words à |à 6 PagesIt is a common belief that students will perform better in a well-funded school. The National Report Card (NRC) examines the finance systems of all 50 states in the nation measuring how schools are funded based on four different categories: funding level, funding distribution, effort and coverage. ââ¬Å"A fair funding system is one that provides a sufficient level of funding distributed to account for the additional needsâ⬠of the various populations, ensuring that all students have an equal and adequateRead MoreSchool Funding For Public Schools Essay971 Words à |à 4 Pagesfortunate children born close to a well-funded school district. The schools that are academically acceptable are schools that have more money than the schools that are not. One might conclude that because of this, schools that are not academically acceptable are failing due to the fact that they do not have the right resources necessary to pass end of the year tests. There are numerous reasons put forth from researchers who want to look into why our public schools are failing. In my opinion, the singleRead MorePublic School Funding Is Unfair And Unequal1374 Words à |à 6 PagesIntroduction Public school funding is unfair and unequal in most states. However, more concerning is out of the 49 million children in public schools, students living in poverty are affected the most. There are wide disparities in the amount spent on public education across the country, from a high of $18,507 per pupil in New York, to a low of $6,369 in Idaho (Baker, Sciarra, Farrie, 2015). The question that all stakeholders should be asking is school funding fair? What is fair school funding? FairRead MoreStruggle Of Funding During The Nineteenth Century Essay1472 Words à |à 6 PagesStruggle of Funding In the early 17th century colonist was required to teach their children how to read the bible. During this period, the Puritans in Massachusetts enacted the Old Deluder Act, forcing communities of fifty families or more to establish funds, and operate schools. Many didnââ¬â¢t follow the law because they were not privileged as the wealthy communities were; therefore, many poor children remained uneducated unless they were taught by their families. According to Bayer Sampat, (2016)Read MoreCharter Schools Vs Traditional Public Schools948 Words à |à 4 Pages Charter Schools vs Traditional Public Schools Charter schools are an alternative to traditional public schools, but are often viewed as the superior option in comparison to the traditional public school route. 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Key differences between charter and public schools include approachRead MoreEssay on Public Education1719 Words à |à 7 PagesPublic Education Education is an issue that touches everyoneââ¬â¢s lives in one way or another. Whether you are a parent, student, teacher, taxpayer, or employee, the effects of education on society can be seen everyday. For this reason, public schools are a top concern among political leaders. Over the past twenty-five years, confidence in the nationââ¬â¢s public school system has dramatically declined. While the public for the most part seems to support their school district, criticismRead MoreThe New Jersey State Department Of Education1220 Words à |à 5 PagesThe New Jersey State Department of Education received government, state, and local funding for youths ages 5-17, as part of the 21st Century Community Learning Centers Program. 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Monday, December 9, 2019
Case Study Intermarket Essay Example For Students
Case Study Intermarket Essay CASES C ASE OUTLINE 1. CLUB MED: MAKING A COMEBACK 2. HONDA IN EUROPE 3. ANHEUSER-BUSCH INTERNATIONAL, INC. : MAKING INROADS INTO BRAZIL AND MEXICO 4. VOLKSWAGEN AG NAVIGATES CHINA 5. WAL-MART OPERATIONS IN BRAZIL: AN EMERGING GIANT 6. LOUIS VUITTON IN JAPAN: THE MAGIC TOUCH 7. STARBUCKS COFFEE: EXPANSION IN ASIA 8. GAP INC. 9. MOTOROLA: CHINA EXPERIENCE 10. iPOD IN JAPAN: CAN APPLE SUSTAIN JAPANââ¬â¢S IPOD CRAZE? 11. NTT DoCoMo: CAN i-MODE GO GLOBAL? 12. THE FUTURE OF NOKIA 13. MAYBELLINEââ¬â¢S ENTRY INTO INDIA 14. YAHOO! JAPAN *15. AOL GOES FAR EAST *16. DANONE: MARKETING THE GLACIER THE UNITED STATES *17. BMW MARKETING INNOVATION *18. HERMAN MILLER, INC. VS. ASAL GMBH *19. NOVA INCORPORATED: TWO SOURCING OPPORTUNITIES ? *20. CERAS DESERTICAS AND MITSUBA TRADING COMPANY *21. THE HEADACHES OF GLAXOWELLCOME *22. BENETTON *23. TWO DOGS BITES INTO THE WORLD MARKET: FOCUS ON JAPAN *24. ABC CHEMICAL COMPANY GOES GLOBAL *25. DAIMLERCHRYSLER FOR EAST ASIA *26. SHISEIDO, LTD. : FACING GLOBAL COMPETITION *27. SMS PACS *28. DAIMLER-BENZ AG: THE A-CLASS AND THE MOOSE-TEST *29. PEPSI ONE *30. UNISYS *31. FORD MOTOR COMPANY AND DIE DEVELOPMENT *32. CITIBANK IN JAPAN *33. KAO CORPORATION: DIRECTION FOR THE 21ST CENTURY *34. PLANET HOLLYWOOD: THE PLATE IS EMPTY *35. HOECHST MARION ROUSSEL: RABIPUR RABIES VACCINE ? Indicates available on the Web at: www. wiley. com/college/kotabe 621 622 â⬠¢ Case 1 â⬠¢ Club Med: Making a Comeback C ASE 1 CLUB MED: MAKING A COMEBACK ? Club Mediterranee (Club Med), a corporation in the allinclusive resort market, manages over 140 resort villages in Mediterranean, snow, inland, and tropical locales in over 40 countries. Its resorts do business under the Club Med, Valtur, Club Med Affaires (for business travelers), and Club Aquarius brand names. Club Med also operates tours and two cruise liners: Club Med 1 cruises the Caribbean and the Mediterranean, and Club Med 2 sails the Paci? c. The company ? also arranges specialized sports facilities. Club Mediterraneeââ¬â¢s clientele is about one-third French, with the rest being mainly from North America and Japan. Club Med found that its all-inclusive price is not as widely accepted today as it was in the past and that consumersââ¬â¢ preferences have changed. Vacationers are not willing to spend large amounts of money for vacations that include many activities they are not using as much as they had been in the past. This change in preference poses a problem for the company because Club Medââ¬â¢s competition has been able to customize travel packages for each consumer at prices that vacationers feel more comfortable with. Although it appears easy for Club Med to customize travel packages, the company is at a disadvantage compared to its competition. Most of the competitors are found in a small number of locations, whereas Club Med has resorts scattered all over the world. Currency devaluation and political boycotts are some of the situations that Club Med faces worldwide on an ongoing basis. These external factors are reducing the companyââ¬â¢s ability to increase sales and gain new customers. BACKGROUND AND HISTORY ? Club Mediterranee, otherwise known as ââ¬Ëââ¬ËClub Med,ââ¬â¢Ã¢â¬â¢ was originally founded by a group of travelers, headed by Gerald Blitz, in 1950. However, through the years, as this group was increasing in size, it was becoming increasingly more dif? ult to manage. Blitz, therefore, took the opportunity to turn this ââ¬Ëââ¬Ëassociationââ¬â¢Ã¢â¬â¢ into a business, with the aid of Gilbert Trigano, in 1954. Trigano sought to establish this organiza? tion, and by 1985, Club Mediterranee S. A. was transformed into a publicly traded company on the Paris Stock Exchange. Club Med Inc. became the U. S. -based subsidiary of Club ? Mediterranee, headed by Triganoââ¬â¢s son Serge. Today, Club Med encompasses over 114 villages, on six continents, and 33 countries (see Exhibit 1). In addition, Club Med has two cruise ships. The Club Med style can be best described by the sense of closeness found among the managers. All managers are former village chiefs and are therefore knowledgeable of the This case was prepared by Karen Bartoletti, Alexandra Doiranlis, Steven Kustin, and Sharon Salamon of New York Universityââ¬â¢s Stern School of Business and updated by Sonia Ketkar of Temple University under the supervision of Professor Masaaki Kotabe for class discussion rather than to illustrate either effective or ineffective management of a situation described (2006). companyââ¬â¢s everyday operations. This immediately re? cts on the ââ¬Ëââ¬Ëfriendlyââ¬â¢Ã¢â¬â¢ relationships that the GOs (Club Med-speak for assistants or gracious organizers) and GMs (Club Medspeak for guests or gracious members) have with each other, making every vacationerââ¬â¢s experience a memorable one. A distinguishing feature of a Club Med resort is the living area, which is much simpler than that of a typical hotel cha in. Rooms are sparsely decorated (i. e. , no phones, televisions, etc. ). Unlike typical hotel chains, Club Med measures its capacity in each resort by the number of beds, not the number of rooms, because singles have roommates. This simpler approach has made Club Med very successful. Another key to success was Club Medââ¬â¢s image as a place to go when you want to escape. However, in the year 2004, after years of trying to make higher pro? ts, the company altered its strategy hoping to make a comeback. The new strategy aimed at giving consumers a differentiated product that was more upscale and luxurious, especially in the Americas. INDUSTRY STRUCTURE Until 1986, Club Med had a very strong position in the all-inclusive resort market. The corporationââ¬â¢s level of bargaining power with buyers, suppliers, and labor was high (see Exhibit 2). During that time period, a client interested in duplicating ââ¬Ëââ¬Ëthe Club Med experienceââ¬â¢Ã¢â¬â¢ would have had to pay an additional 50 percent to 100 percent to have an identical experience at other resorts (see Exhibit 3). With regard to suppliers, companies that provided vacation-related services, such as airlines, were willing to give Club Med signi? cant discounts in exchange for mass bookings. In keeping with the advance in information technology and the value of the Web, Club Med launched a Web site www. lubmed. com at the end of 2003. The Internet now accounts for around 20 percent of its sales. This proved to be a huge boon to travel agents who check availability, prices, air fares, and even make bookings online. The Web site also allows travel agents to block reservations rather than book and con? rm them for up to 48 hours. In 2004 Club Med develo ped a specialist program for travel agents. Under the program, the company certi? ed 12,000 travel agents and apparently the certi? cation has enabled the agents to increase bookings signi? cantly. Finding labor was not a problem for this resort chain because thousands of people were interested in working at such a pleasurable location. COMPETITION As of 1986, Club Med began facing competition. This company was no longer the only all-inclusive resort. Many of the ? rmââ¬â¢s competitors were realizing similar success. In 1986, most of the all-inclusive competitors had adopted Club Medââ¬â¢s style of recreational activities, with staff members acting as directors of these organized games. By then, the only major difference that Club Med maintained was the fact that their price did not include drinks. At the start of the year 2004, after several years of listening to agents complain that vacationers Case 1 â⬠¢ Club Med: Making a Comeback â⬠¢ 623 EXHIBIT 1 THE CLUB MEDITERRANEE GROUP VILLAGES WORLDWIDE THE CLUB MEDITERRANEE GROUP VILLAGES WORLD WIDE SWITZERLAND Pontresina Pontresina (winter) Saint Moritz Victoria (winter) Saint Moritz-Roi Soliel Valbella Villars-sur-Ollon Villars-sur-Ollon (winter) Wengen ITALY Caprera NORTH Cefalu Donoratico SEA Kamarina Metaponto Otranto Santa Teresa Sestriere Villages operated or managed by Club Med Inc. (the U. S. ubsidiary) Villages operated by Club Mediterrance SA (the French parent company) FRANCE Avoriaz Cargese Chamonix Chamonix (winter) Dieulefit Forges-les-Eaux LAlpe dHuez LAlpe dHuez (winter) La Plagne Les Arcs Les Menuires Meribel (winter) Opio Pompadour SantAmbrogio Superbagneres Superbagneres (winter) Tignes Val Claret (winter) Val dIsere Vittel SPAIN Cadaques Don Miguel Ibiza BERMUDA Porto Petro BAHAMAS MOROCCO Columbus Isle Agadir Eleuthera Al Hoceima Paradise Island TURKS CAICOS Marrakech Ouarzazate Turquoise Smir HAITI Yasmina Magic Haiti DOMINICAN REPUBLIC Punta Cana GUADELOUPE SENEGAL Cap Skirring Les Almadies MARTINIQUE IVORY COAST Assinie SOUTH TUNISIA AMERICA Hammamet Jerba la Douce Jerba la Fidele EGYPT BRAZIL Itaparica Rio das Pedras YUGOSLAVIA ROMANIA BULGARIA Roussalka CROATIA Pakostane TURKEY Bodrum Foca Kemer Palmiye GREECE Corfou Ipsos Gregolimano Helios Corfou Kos ISRAEL Arziv Coral Beach ASIA EUROPE PACIFIC OCEAN NORTH AMERICA USA Copper Mountain Sandpiper MEXICO Cancun Huatulco Ixtapa Playa Blanca Sonora Bay ARCHAEOLOGICAL VILLAS FRENCH WEST INDIES Buccaneers Creek Caravelle Club Med 1 (winter) FRENCH POLYNESIA (TAHITI) Bora Bora Club Med 2 Moorea JAPAN Sahoro CHINA (PROVINCE OF) THAILAND Phuket MALAYSIA Cherating MEDITERRANEAN SEA Club Med 1 AFRICA INDIAN OCEAN PORTUGAL Da Balaia INDONESIA Bali Ria Bintan MALDIVE ISLANDS Faru MAURITIUS La Pointe aux Canonniers REUNION AUSTRALIA Lindeman Island NEW CALEDONIA Chateau Royal Club Med 2 (winter) ere skeptical above booking Club Med resorts due to its exclusive prices, Club Med reverted to an all-inclusive deal and launched its ââ¬Ëââ¬Ëtotalââ¬â¢Ã¢â¬â¢ all-inclusive package in most of its villages. In the ? rst part of 2005, the company declared the Alps area, in which it operates 22 vi llages, a cash-free zone, meaning that an all-inclusive package with snacks and drinks around the clock. That area of the world being a major ski locale, it attracts thousands of people every year. Therefore, Club Med has also launched ski programs for its members at its resorts around the Alps. One competitor, Jack Tar Village, the Jamaica-based company, operates resorts located mostly in the Caribbean. Jack Tar positions the resorts as more glamorous and modern than those of Club Med. This can be seen in advertisements where the company implicitly criticizes the spartan rooms and methods of Club Med. Jack Tarââ¬â¢s claim to fame in relation to Club Med is its open-bar policy. Another competitor that the ? rm must consider is the SuperClubs Organization, which operates four resorts in Jamaica. These resorts have reputations for being the most uninhibited and sexually oriented resorts. SuperClubs also follow a system of having drinks included in their price, but the other distinction from Club Med is the vacationââ¬â¢s packaging and distribution. Club Med bundles the ground transportation with the rest of their packages while air transportation was to be distributed directly to consumers or travel agencies. SuperClubs, on the other hand, bundled ground transportation packages to be sold through large tour wholesalers, who in turn grouped these packages to be sold to the travel agencies. Activities that Club Med and their competition offer are similar, but the way they are offered is somewhat different. Club Medââ¬â¢s competitors offer the same activities but do not include them in the initial price of the vacation. A few of SuperClubsââ¬â¢ activities that were included were tennis, basketball, and exercise rooms, but jet-skiing and parasailing were available for an additional fee. This allowed Club Medââ¬â¢s competitors to offer lower prices and take away potential clients from Club Med. This concept has worked for the competition because consumers ? d that they are not using all the activities offered. Therefore, there is no reason to pay an all-inclusive price. Club Med, on the other hand, suffers from ecological, economic, and political constraints that prevent the ? rm from using this individual pricing method, which could lead to customized packages for vacationers. THE SERVICE CONCEPT Club Med has a worldwide presence in the resort vacation business that has allowed the ? rm to grow and dominate this industry. The original mission statement includes the idea that the companyââ¬â¢s goal is to take a group of strangers away from 624 â⬠¢ Case 1 â⬠¢ Club Med: Making a Comeback EXHIBIT 2 FORCES DRIVING INDUSTRY COMPETITION Barriers to Potential Entrants Economics of Scale Volume discounts Air travel Food Advertising Semitransferable demand among numerous villages Experience-Curve Effects 30 years experience Proprietary Process Recipe for Club Med magic Village chiefs Determinants of Supplier Power Many price-competitive airlines Airline seats cannot be inventoried Many price-competitive food companies Host governments want hard foreign currency Strong demand to work for Club Med at low wages Minimal threat of forward integration by suppliers Brand Identity Club Med name 65% new business through word of mouth Fantasy and romance High Capital Requirements $20 million to $25 million per 600-bed club Need several clubs to gain scale economies Favored Political Status Tax incentives Joint ventures with host governments Determinants of Buyer Power Purchasers are private individuals Price of similar vacation 50%ââ¬â100% higher if buyers self-package High perceived risk of wrong vacation choice Buyers cann ot integrate backward (except for buying a second home or timesharing Intra-Industry Rivalry Few rival firms Most based in Jamacia (Club Med has no Jamacia villages) Determinants of Substitute Threat Buyers Face High-Switching Costs High opportunity cost of leisure time Reasonable Club Med price Risk-averse buyers Price of equivalent alternative vacations Substitutes Few and Dissimilar Cruise ships Traditional resorts EXHIBIT 3 COST COMPARISON Average Costing of a 7-day holiday in Don Miguel ? Return airfare London/Malaga Coach transfer to resort U. K. government departure taxes Hotel (3-star equivalent) breakfast Seven three-course lunches (@ ? 15) Wine with lunch and dinner (7 bottles @ ? 5) Seven three-course dinners (@ ? 17) Cycling (6 days @ ? 5/hr) Tennis lessons (6 days @ ? 8/hr) Night club entrance (6 ? ?5) Tips to staff (7 ? ?2) Child care facilities (6 ? 4 hrs @ ? 5/hr) Total Normal Marbella Prices ? 199 ? 20 ? 5 ? 300 ? 105 ? 35 ? 119 ? 30 ? 48 ? 30 ? 14 ? 120 ? 1,025 Typical Club Med Holiday Included Included Included Included Included Included Included Included Included Included Included Included From ? 569 Other activities/facilities included in the price at Club Med Don Miguel: Swimming Pool, Circus School, Archery, Weights Room, Keep? t Classes, Specialty Restaurant, Bridge, Evening Entertainment/Shows, Ping Pong, Jacuzzi, Sauna, Hamman. Other on-site conveniences at Club Med: Bank, Boutique, Medical Center, Bars (bar drinks extra cost), Car Rental, and Laundry Service. Case 1 their everyday lives and bring them together in a relaxing and fun atmosphere in different parts of the world. This feeling can be expected in any of the 110 resorts. This mission is the key to Club Medââ¬â¢s competitive advantage. Consumers anywhere in the world know they will get the same preferential treatment while they are in the Club Med villages. The companyââ¬â¢s strategy of keeping members coming back is carried out by having their guests join a club as members with an initiation fee as well as annual dues. With the membership, they receive newsletters, catalogs featuring their resorts, and discounts on future Club Med vacations. This makes people feel more like a part of the Club Med and creates strong brand loyalty. In fact, an average Club Med vacationer revisits four times after their initial stay at one of its resorts. All Club Med villages are similar in their setup regardless of what part of the world they are located. The resort sites are carefully chosen by taking into consideration the natural beauty (i. e. , scenic views, beachfront, woodland, no swampland, etc. ), good weather, and recreational potential. Each resort has approximately 40 acres to accommodate all the planned activities: windsur? ng, sailing, basketball, volleyball, tennis, and so on. The resortsââ¬â¢ secluded atmosphere is further exempli? ed by the lack of daily ââ¬Ëââ¬Ëconveniencesââ¬â¢Ã¢â¬â¢ such as: TV, clocks, radios, even writing paper. This is done to separate individuals from civilization so they can relax as much as possible. However, under the new luxury experience model, Club Med is in fact adding room facilities in some of its resorts. Club Med organizes everything in a manner that encourages social interaction between guests. The rooms are built around core facilities such as the pool. Meals are done buffet style, and the tables seat six to eight people so guests can sit and meet with many different people at every meal. All activities and meals are included in the fee paid before the vacation begins. The only exceptions are bar drinks and items purchased in the small shops; those items are put on a tab and paid for at the end of the vacation as guests check out. The goal behind this all-inclusive price is to limit the number of ? nancial decisions made by the guests so that, once again, they do not have to think of the pressures of the ââ¬Ëââ¬Ëreal world. ââ¬â¢Ã¢â¬â¢ Each day the guests have a choice of participating in a variety of activities. As evening sets in, there are choices for after-dinner activities such as dancing and shows. All activities are designed to encourage guests to join in. Even the shows allow for audience participation. PROBLEMS ? Until 1996, Club Mediterranee was predicted to have strong sales growth due to successful market penetration in other countries (see Exhibit 4). However, the same expansion that helped the ? rm become famous may be the cause of the ? rmââ¬â¢s disadvantage in relation to its competitors. Club Med does not have as large of a sales increase as it had anticipated. This is due to economic and ecological disasters in countries where Club Med resorts are located. This makes it dif? cult for Club Med to aintain its beautiful resorts in countries that suffer from such disasters. With this knowledge taken into consideration, contracts are drawn up between Club Med and the government of the corresponding country. The key clause in these contracts states that if Club Med is allowed t o enter the country, the ? rm â⬠¢ Club Med: Making a Comeback â⬠¢ 625 will increase tourism in the area. In turn, the government will provide ? nancial aid to help pay for the costs of maintaining the new resort facilities. EXHIBIT 4 REVENUES BY REGION (2002) France Europe (excluding France) America Asia 32% 20% 17. 7% 10. 2% Joint ventures with host governments have not proven to be as pro? table as expected. An example of such a disappointment occurred when the Mexican government agreed to maintain Club Medââ¬â¢s facilities if the corporation would increase Mexicoââ¬â¢s tourism level. However, unexpected occurrences, such as depreciation in the countryââ¬â¢s currency, limited the amount of capital the Mexican government could allocate to maintain the resortââ¬â¢s facilities. This put Club Med in a dif? cult situation when the ? rm had to suddenly maintain its facilities with less government funds than expected. Although Club Medââ¬â¢s resorts are very pro? table in Mexico, the devaluation of the peso has caused Club Medââ¬â¢s maintenance costs to rise dramatically. This in turn prevents Club Med from reducing its prices and offering customized packages to its vacationers. A second example of how international resorts reduce the ? rmââ¬â¢s ability to compete effectively is Club Medââ¬â¢s penetration into France. The resorts in the area had been doing well until March 1996. At that time, it became known that France had been conducting nuclear tests in the South Paci? c. This ? caused Club Mediterranee to receive fewer bookings than expected in its Tahiti-based resorts. Tourists avoided these resorts because of riots among residents concerned about the testing; this resulted in negative publicity in this part of the world. The riots, which often occurred in airports, deterred potential tourists from ? ying into this region. Another signi? ant event in the history of Club Med was September 11, 2001, in the United States, which caused a considerable reduction in travel the world over. For Club Med, however, it was followed by the closing of 15 of its villages. Since then, it has reopened six and opened four new villages. The hurricanes in the Caribbe an in 2004 also caused some serious damage to Club Medââ¬â¢s resorts in those regions. The company had to rebuild its Punta Cana village and at the time it gave out hurricane protection certi? cates that allowed guests who had lost out on vacation days due to the category 1 hurricane. Guests can exchange those certi? cates for travel to that destination in the future. Worse still, the terrible tsunami disaster in South East Asia devoured most of its coastline and Club Medââ¬â¢s properties in Malaysia, Phuket, and the Maldives. Furthermore, the region has experienced a huge reduction in tourism. Happenings in one area where Club Med is based often indirectly affect other Club Med resorts as well. With a lower clientele in its Tahiti-based resorts, and in the surrounding territories, Club Med experiences lower revenues and, therefore, acquires less money to maintain these resorts. As a result, 626 â⬠¢ Case 1 â⬠¢ Club Med: Making a Comeback to concentrate its sales and marketing efforts on France, the United States, Canada, Belgium, Japan, Italy, Germany and Switzerland. These countries account for 74 percent of visitors. Michelangelo Was Pessimistic In His Poetry And An Optimist In His Artw EssayThe image of Japanese cars in France is relatively poor, dating back to the 1930s when Japanese manufacturers entered the European market with low-quality products. Since that time, Japanese carmakers, in particular Honda, have not understood the concept of style and image in marketing. They appear to show a car only in a factual way, which is extremely low-context. Japanese carmakers in France have recently tried to alter their image, though with limited success. Today Franceââ¬â¢s image of Japanese cars, and in particular that of Honda, is that of a small, low-quality car, suitable only for a second car. Most buyers of Japanese cars are young career women who have just entered the workforce and housewives with limited cash. The main family car is likely to be a Renault or Peugeot and is driven by the man in the family. In addition, the French are risk-averse people, who dislike trying new things. They are also highly patriotic, supporting and purchasing their national products, such as Renault and Peugeot cars. The patriotism and risk averseness of the French, together with their low image of Japanese cars and the large number of other European automobiles available in the market, makes it extremely dif? cult for Honda to be successful in this market. Italy. Italy, like France, is a high-context culture where a great deal of emphasis is placed on feeling and style. The Italian culture is re? ected in their daily lifestyle, which gives a sense of romance to the people living there. As in France, the Italians view Japanese cars as small, low-quality vehicles, suitable only as a second family car. The most popular automobile in Italy, especially for families, is the Fiat. The Fiat is dominant because the Italians, like their high-context cousins the French, are very patriotic. Italians are also risk-averse and are not adventurous in sampling products outside of Europe. Italians, like the majority of Europeans, love to drive diesel automobiles. Only the French enjoy driving diesel cars more than the Italians. Case 2 However, Honda produces very few diesel cars, and the only country in which they are offered is the UK, where they are relatively unpopular. The following table shows the ? ve-year diesel car market share percentages in the UK, Germany, France, and Italy. â⬠¢ Honda in Europe â⬠¢ 631 MARKET SHARE OF DIESEL CARS BY COUNTRY Year 1997 1998 1999 2000 2001 UK 16. 17 15. 28 13. 8 14. 1 17. 7 Germany 14. 9 17. 6 22. 4 30. 3 N. A. France 41. 8 40. 2 44. 1 49. 1 N. A. Italy 16. 9 22. 3 32. 1 33. 3 N. A. Euro Avg. 25. 2 27. 7 33. 1 33. 3 N. A. Italy but is more conservative in nature. On the other hand, the English are more individualistic and less risk averse than the French and Italians. Hence, it should be easier for Honda to introduce its range of cars in the UK and to improve sales. The fact that the manufacturing plant is located in the UK helps in the promotion of the cars. The construction of a second assembly plant should also help Hondaââ¬â¢s position in the UK. The existence of the assembly plant, together with the risk-taking nature of the English, has increased the number of Hondas sold in the UK in the last ? ve years to such a level that it is easily Hondaââ¬â¢s best market. The number sold in the UK as of 2001 was twice that of Germany, which only ? ve years before had recorded more sales than the UK. However, no Honda vehicle has entered the list of the top ten cars sold in the UK, as shown in the following table for 2001. The table shows that diesel cars account for 30 to 50 percent of vehicles in France, Italy, and Germany. Diesel cars are hugely popular because of the high gasoline prices in those countries. Diesel engine cars are cheaper to maintain in the long run, compared to gasoline engine cars. A large number of European cars compete in Europe, particularly at the luxury end. BMW, Mercedes, and Audi are very popular for the very rich, as are Ferrari, Lamborghini, and Porsche. It is dif? cult for Japanese cars to enter the European market, especially at the higher end. The only Japanese cars that are selling reasonably well are Toyotaââ¬â¢s Yaris, Nissanââ¬â¢s Micra, and Jazz from Honda. All three models compete in the 1. 4 liter and under segment. Germany. Of the four main European countries in which Honda is sold, Germany has had the second highest sales volume. Germany is a low-context culture where practicality and durability are two of the main concerns of a product. Consumers are concerned with every detail regarding a product and wish to know all relevant information before making a purchase. The promotion style used by Honda on the Internet, bursting with information on their automobiles, seems to be an appropriate form of promotion for the low-context nature of the Germans. Another factor that should place Hondaââ¬â¢s products in a better position in Germany is the Germansââ¬â¢ greater willingness to take risks and to purchase new products. As a result, Honda would not have to spend additional resources to change the image of their vehicles in Germany, as it should probably do in France and Italy. In reality, however, Hondaââ¬â¢s sales have been dropping rapidly in the past ? ve yearsââ¬â50 percent of what they were ? ve years ago. If Hondaââ¬â¢s promotion is in line with the Germanââ¬â¢s low-context nature, there must be another reason for the decrease in sales. The most logical is the perceived nature of Hondaââ¬â¢s quality. The company needs to use its marketing to promote quality because competitors such as Mercedes (under DaimlerChrysler), Audi, Volvo, Jaguar (under Ford), and Volkswagen, to name a few, are seen as high-quality carmakers. The United Kingdom. The English are a moderately highcontext culture, who focus on tradition and class. Accordingly, the type of advertising and marketing promotion that will appeal to the English is similar to that popular in France and TOP 10 CARS SOLD IN EUROPE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Ford Focus Vauxhall Astra Ford Fiesta Peugeot 206 Vauxhall Corsa Ford Mondeo Renault Clio Renault Megane Volkswagen Golf Citroen Xsara POSSIBLE ENTRY WEDGE A possible entry wedge exists in Europe that could help Honda recover some of its lost ground. The European automotive industry is committed to a voluntary agreement to reduce CO2 emissions by 25 percent from the 1995 levels by 2008 for all new cars. As an incentive for individuals to drive lowemission cars, special tax brackets will be given to drivers of low-emission cars. In 2001, Hondaââ¬â¢s Insight produced the lowest levels of CO2 emission of any car in Europe. The following table shows the ? ve cars with the lowest CO2 emission. TOP 5 CARS WITH THE LOWEST CO2 EMISSION Rank 1. 2 3 4 5 Car Honda Insight Peugeot 206 Toyota Prius Renault Clio Audi A2 Engine 1 liter 1. 4 liter 1. 5 liter 1. 5 liter 1. 4 liter Gas Type Gasoline Diesel Gasoline Diesel Diesel Co2 g/km 80 113 114 115 116 The ranking is an excellent opportunity for Honda to promote its cars in Europe, where people (especially in Germany) are obsessed with the environment and are burdened with high taxes. In addition, Honda is introducing the Civic Hybrid in 2003. It is a gasoline-electric power train, fuel-ef? cient car with a low CO2 emission level. Although the car has an electric engine, it does not need to be plugged in and recharged. The battery pack recharges itself automatically as the car is running. 632 â⬠¢ Case 3 THE ISSUE â⬠¢ Anheuser-Busch International, Inc. : Making Inroads into Brazil and Mexico 2. Is it wise for Honda to market its products the same way in every country? 3. Is pricing its vehicles similar to the competition a good strategy for Honda? 4. Should Honda change its product mix from country to country? 5. Is distributing its motor vehicles together with its motorcycles a good strategy for Honda? 6. Is the European market too competitive for Honda? Honda is currently at the crossroads of its European expansion in the automobile market. It has been successful in managing to market essentially the same cars in many parts of the world, particularly in the North American and Japanese markets. Honda executives are wondering whether or not they should adopt more localized product development in Europe. DISCUSSION QUESTIONS 1. Does adapting the promotion of its motor vehicles to suit each countryââ¬â¢s culture make sense for Honda? C ASE 3 ANHEUSER-BUSCH INTERNATIONAL, INC. : MAKING INROADS INTO BRAZIL AND MEXICO HISTORY In 1852 George Schneider started a small brewery in St. Louis. Five years later the brewery faced insolvency. Several St. Louis businessmen purchased the brewery, launching an expansion ? nanced largely by a loan from Eberhard Anheuser. By 1860 the enterprise had run into trouble again. Anheuser, with money already earned from a successful soapmanufacturing business, bought up the interest of minority creditors and became a brewery owner. In 1864 he joined forces with his new son-in-law, Adolphus Busch, a brewery supplier, and eventually Busch became president of the company. Busch is credited with transforming it into an industry giant and is therefore considered the founder of the company. Busch wanted to break the arriers of all local beers and breweries, so he created a network of railside icehouses to cool cars of beer being shipped long distances. This moved the company that much closer to becoming one of the ? rst national beers. In the late 1870s, Busch launched the industryââ¬â¢s ? rst ? eet of refrigerated cars but needed more to en sure the beerââ¬â¢s freshness over long distances. In response, Busch pioneered the use of a new pasteurization process. In 1876 Busch created Budweiser, and today the company brews Bud the same way it did in 1876. In 1896 the company introduced Michelob as its ? rst premium beer. By 1879 annual sales rose to more than 105,000 barrels, and in 1901 the company reached the one-million barrel mark. In 1913, after his fatherââ¬â¢s death, August A. Busch Sr. took charge of the company, and with the new leadership came new problems: World War I, Prohibition, and the Great Depression. To keep the company running, Anheuser-Busch switched its emphasis to the production of corn products, bakerââ¬â¢s yeast, ice cream, soft drinks, commercial refrigeration units, and truck bodies. They stopped most of these activities when This case was prepared and updated by Masaaki Kotabe with the assistance of Sonia Ketkar of Temple University for class discussion rather than to illustrate either effective or ineffective management of a situation described (2006). Prohibition ended. However, the yeast production was kept and even expanded to the point that Anheuser-Busch became the nationââ¬â¢s leading producer of compressed bakerââ¬â¢s yeast through the encouragement of the companyââ¬â¢s new president in 1934, Adolphus Busch III. August A. Busch Jr. succeeded his brother as president in 1946 and served as the companyââ¬â¢s CEO until 1975. During this time eight branch breweries were constructed, and annual sales increased from 3 million barrels in 1946 to more than 34 million in 1974. The company was extended to include family entertainment, real estate, can manufacturing, transportation, and major league baseball. August A. Busch III became president in 1974 and was named CEO in 1975. From that time to the present, the company opened three new breweries and acquired one. Other acquisitions included the nationââ¬â¢s second-largest baking company and Sea World. The company also increased vertical integration capabilities with the addition of new can manufacturing and malt production facilities, container recovery, metalized label printing, snack foods, and international marketing and creative services. CORPORATE MISSION STATEMENT Anheuser-Buschââ¬â¢s corporate mission statement provides the foundation for strategic planning for the companyââ¬â¢s businesses: The fundamental premise of the mission statement is that beer is and always will be Anheuser-Buschââ¬â¢s core business. In the brewing industry, Anheuser-Buschââ¬â¢s goals are to extend its position as the worldââ¬â¢s leading brewer of quality products; increase its share of the domestic beer market 50% by the late 1990s; and extend its presence in the international beer market. In non-beer areas, Anheuser-Buschââ¬â¢s existing food products, packaging, and entertainment will continue to be developed. The mission statement also sets forth Anheuser-Buschââ¬â¢s belief that the cornerstones of its success are a commitment to quality and adherence to the highest standards of honesty and integrity in its dealings with all stakeholders. Case 3 â⬠¢ Anheuser-Busch International, Inc. : Making Inroads into Brazil and Mexico â⬠¢ 633 ANHEUSER-BUSCH INTERNATIONAL PARTNERSHIPS Country Argentina Partner ? ?a Compan? Cervecer? Unidas ? as S. A. -Argentina (CCUââ¬âArgentina) (Cervecer? Costa Rica ? a ââ¬âLa Constanc? ?a ââ¬âCervecer? Centroamericana ? a ? ââ¬âCervecer? Hondurena ? a ? ââ¬âCompania de Nicaragua ââ¬âCervecer? Nacional) ? a ? Cervecer? Unidas ? Compan? a ? as (CCU) Budweiser Wuhan International Brewing Co. Tsingtao Brewery Co. Ltd. Carlsberg Breweries A/S Brasseries Kronenbourg Guinness Ireland Ltd. Birra Peroni Industrial S. p. A. Kirin Brewery Co. Ltd. Investment Equity investment (of which 28. 6% is direct and indirect); licensed brewing and joint marketing Import, distribution Date Dec. 1995 Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama) Apr. 1994 Chile China 20% equity investment 98% A-B owned brewery, A-B sales, marketing, distribution 4. 5% Equity investment Import, distribution Import, distribution, packaging Licensed brewing; joint marketing Licensed brewing; joint marketing Licensed brewing; joint marketing Kirin sales, distribution Import, distribution Equity investment (of which 50% is direct and indirect) Jan. 2001 Feb. 1995 China Denmark France Ireland Italy Japan June 1993 May 1998 Jan. 1996 June 1986 Apr. 1993 Jan. 2000 Mexico Grupo Modelo July 1989 Jan. 1993 Dec. 1986 South Korea Oriental Brewery Co. Ltd. Licensed brewing; joint marketing BEER AND BEER-RELATED OPERATIONS Anheuser-Busch, which began operations in 1852 as the Bavarian Brewery, ranks as the worldââ¬â¢s largest brewer and has held the position of industry leader in the United States since 1957. More than four out of every ten beers sold in the United States are Anheuser-Busch products. In 2004, when the worldââ¬â¢s third largest brewing company, Brazilââ¬â¢s Companhia de Bebidas das Americas (AmBer) joined hands with Belgiumââ¬â¢s Interbrew, the combined ? rm InterbrewAmBer became the worldââ¬â¢s largest Brewer with a global market share of 14 percent and revenues of over $12 billion. Anheuser-Buschââ¬â¢s principal product is beer, produced and distributed by its subsidiary, Anheuser-Busch, Inc. ABI), in a variety of containers primarily under the brand names Budweiser, Bud Light, Bud Dry Draft, Michelob, Michelob Light, Michelob Dry, Michelob Golden Draft, Michelob Gold, Draft Light, Busch Light, Natural Light, and King Cobra, to name j ust a few. In 1993 Anheuser-Busch introduced a new brand, Ice Draft from Budweiser, which is marketed in the United States and abroad as the preferred beer because it is lighter and less bitter than beer produced in foreign countries. Bud Draft from Budweiser was ? rst introduced in the United States in late 1993 in 14 states, with a full national rollout in 1994 in the United States and abroad. SALES Anheuser-Buschââ¬â¢s sales grew slowly after a sales decline in 1994. Net sales increased consistently from 1993 to almost $13. 3 billion in 1998 but fell again to $11. 8 billion in 1999. Net sales were up again in the next ? ve years to $14. 9 billion in 2004. ANHEUSER-BUSCH INTERNATIONAL, INC Anheuser-Busch International, Inc. (A-BII), was formed in 1981 to explore and develop the international beer market. A-BII is responsible for handling the company foreign beer operations and for exploring and developing beer markets outside the United States. Its activities include contract and license brewing, export sales, marketing and distribution of the companyââ¬â¢s beer in foreign markets, and equity partnerships with foreign brewers. 34 â⬠¢ Case 3 â⬠¢ Anheuser-Busch International, Inc. : Making Inroads into Brazil and Mexico investing internationally through both brand and partnership development. Through partnerships, A-BII will continue to identify, execute, and manage signi? cant brewing acquisitions and joint ventures, partnering with the number-one or number-two brewers in growing markets. This strategy will allow A-BII to participate in beer industries around the world by investing in leading foreign brands, such as Corona in Mexico through Modelo. A-BIIââ¬â¢s goal is to share the best practices with its partners, allowing an open interchange of ideas that will bene? t both partners. LATIN AMERICA The development of Budweiser in Latin America is one of the keys to long-term growth in the international beer business, for it is one of the worldââ¬â¢s fastest growing beer markets and is a region with a growing consumer demand for beer. Anheuser-Busch products are sold in 11 Latin American countriesââ¬âArgentina, Belize, Brazil, Chile, Ecuador, Mexico, Nicaragua, Panama, Paraguay, Uruguay, and Venezuelaââ¬âwith a total population of over 380 million consumers. In particular, the three countries showing the fastest growth in total beer consumption in the 1990ââ¬â2000 period are Brazil (+200 percent), Colombia (+130 percent), and Mexico (+100 percent). In Brazil and Mexicoââ¬âthe two largest beer markets in Latin Americaââ¬âAnheuser-Busch International acquired an equity position in their major local breweries. Brazil. Anheuser-Busch International recently made an initial investment of 10 percent in a new Antarctica subsidiary in Brazil that consolidates all of Antarcticaââ¬â¢s holdings in af? liated companies and controls 75 percent of Antarcticaââ¬â¢s operations. Anheuser-Busch will have an option to increase its investment to approximately 30 percent in the new company in the future. The amount of the initial investment was approximately $105 million. The investment has established a partnership that gives Antarctica a seat on the board of Anheuser-Busch, Inc. and gives Anheuser-Busch International proportionate representation on the board of the new Antarctica subsidiary. The two brewers will also explore joint distribution opportunities in the fast-growing South American beer market. According to Scott Bussen (South American representative for A-BII), A-BII is currently in the process of signing a deal that calls for establishing an Anheuser-Buschââ¬âcontrolled marketing and distribution agreement between the two brewers to support sales of Budweiser in Brazil. The deal makes Anheuser-Busch the ? rst American brewer to hold an equity stake in the Brazilian beer market, which is the largest in Latin America and the sixth-largest in the world. Last year the Brazilian beer market grew by more than 15 percent. Its potential for future growth markets is one of the most important global beer markets. The second component of the partnership will be a licensing agreement in which Antarctica will brew Budweiser in Brazil. The joint venture will be 51 percent owned and controlled by Anheuser-Busch and 49 percent by Antarctica. Antarcticaââ¬â¢s production plants will produce Budweiser according to the brandââ¬â¢s quality requirements. Local sourcing of Budweiser will allow more competitive pricing and increased sales of the brand in Brazil. A-BII has a two-pronged strategy: (1) build Budweiser into an international brand and (2) build an international business through equity investments and creating partnerships with, or leading foreign brewers. In seeking growth, Anheuser-Busch International emphasizes part-ownership in foreign brewers, joint ventures, and contract-brewing arrangements. These elements give the company opportunities to use its marketing expertise and its management practices in foreign markets. The success of these growth opportunities depends largely on ? nding the right partnerships that create a net gain for both companies. Other options for international expansion include license-brewing arrangements and exporting. In addition to its domestic breweries in the United States, the company operates two international breweries in China and the United Kingdom, respectively. Budweiser beer is locally brewed through partnerships in seven other countries, Argentina, Canada, Italy, Ireland, Spain, Japan, and South Korea. A-BII is currently pursuing the dual objectives of building Budweiserââ¬â¢s worldwide presence and establishing a signi? cant international business operation through joint ventures and equity investments in foreign brewers. Anheuser-Busch brands are exported to more than 60 countries and are brewed under Anheuser-Buschââ¬â¢s supervision in ? ve countries. A-BII has experienced international growth in all operating regions, with a 9-percent market share worldwide, and has the largest export volume of any U. S. brewer. Anheuser-Busch had more than 45 percent of all U. S. beer exports and exported a record volume of more than 3. 4 million barrels of beer in 1998. From 2002 to 2003, Anheuser-Buschââ¬â¢s international sales volume increased by 5 percent to 8. 4 million barrels. The company now sells beer in over 80 countries worldwide. MARKET SHARE The top 10 beer brands worldwide for 2000 in worldwide market share are shown in Exhibit 1. Most recently, AnheuserBusch has announced several agreements with other leading brewers a
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