Research Topics: De Beers Corporation

De Beers and Diamonds Sales Management and Ethics

Table of Contents   Introduction                                                                                                                2 Question 1             A                                                                                                                     2             B                                                                                                                     5                         i. Ethics Grid                                                                                       5                         ii. Five Ps                                                                                            6                         iii. Ethics Check                                                                                  7 Question 2             A. Legislation Requirements                                                                          9             B. Issues Surrounding Health and Safety                                                      10             C. Commentaries on Voluntary Codes in Place                                             10             D. Consequences of Possible Breaches                                                          11 Question 3             A. Role of Sales Manager                                                                               12             B. Place of Sales Forecast                                                                               12             C. Role of Budget                                                                                          12 Conclusion                                                                                                                  13 References                                                                                                                  15     “De Beers and Diamonds”   Introduction             The issue involving diamonds in terms of sales and market is one of the most complicated, dangerous, and expensive matters a particular business entrepreneur is able to deal with. Although selling and buying diamonds, most specifically owning one is equated with luxury, style, fashion, and extravagance, the issue of diamonds makes one shed blood and even lose their lives in the process of obtaining it from the diamond mines. In addition, because involving diamonds and other gemstones in business involves large sums of money, many business entrepreneurs venture into this kind of business in the hopes of acquiring more profit and personal gain. As such, a number of prestigious companies, including De Beers have been patiently and intelligently coming up with strategies that would provide them with millions and billions of profits.             In this regard, this paper will discuss the different aspects related to the case, such as ethical theories and models, sales and key account management, employment law, and employee health and safety promotion. At the end of the report, recommendations and conclusions will be provided in order to highlight important points discussed in the paper, and provide suggestions for the improvement of the situation featured in the case study.   Question 1: Ethical Issues in De Beers Case Study a. One of the ethical issues that can be cited in the De Beers case study is the high price involved in the selling of diamonds. Aside from the fact that the obtaining the diamonds is difficult and risky, De Beers also makes the price of the diamond more expensive by their marketing and sales strategies. This is because the company sells the diamonds at a very high price in order to sustain their reputation of being the “most preferred supplier” of diamonds in the country. As such, because the other companies buying and selling diamonds have acquired the goods at a very high price, the tendency would be for them to further increase its selling price in the market. Thus, this is considered as an ethical issue, particularly in relation to the issue of overpricing.             The second ethical issue to be considered is related to the attempted burglary at the Millennium Dome, which was said to be having a plot similar to a James Bond film. The ethical issue to be stated here is the statement of the company’s chairman of publicity, Nicky Oppenheimer, who emphasized that if such an event can happen once in every six months then the company can do away with its advertising department. This statement can trigger an ethical issue because with his statement, he can encourage thieves or robbers to make plans of stealing diamonds from their company. In this sense, it can also be assumed that it is not impossible for the company to make similar scenes or plots in order for them to attract the attention of consumers. As such, it is possible for the company to come up with big lies just to make their goods even more controversial.             The third ethical issue to consider is related to the conflict diamonds from the jungles of Africa and from the mines of Canada. This is because encouraging consumers to buy the most expensive and the most extravagant diamonds may indicate that other peoples from different parts of the world do not care about what happens to the people in Africa, just so in order for them to produce diamonds. The recent movie shown in 2006 entitled, “Blood Diamond”, starring Leonardo DiCaprio, Djimon Hounsou, and Jennifer Connelly, shows how conflict diamonds are being taken out of Africa, and what events are involved before a single diamond can be taken to London to be sold as a precious and expensive jewelry.             The fourth ethical issue is related to the scandalous price of diamonds. Most of the interested parties, such as business entrepreneurs, jewelers, banks who finance diamond mines, and diamond owners do not agree to lower the prices of diamonds, as they are considered their investments and a source of security in the future. Therefore, lowering the price of diamonds would mean disaster, as many diamond hoarders would be surfacing, making the diamond cartel confusing and chaotic. In this regard, the ethical issue to be considered here is the fact that the issue of diamonds may involve insistence of one’s personal motives and gains, without putting others’ welfare and safety.             The last ethical issue considered is the influence of marketing to the image portrayed by the relationship of diamonds and the female gender. Because not all women from around the world can purchase diamonds, this creates discrimination, lack of confidence and self-esteem, and social stratification. Ethics is defined as the science or study of morals, and refers to how individuals determine what is good for the flourishing of people in society, and what rules individuals need to prevent people from being harmed (Melia et al 2000). Based on such ethical issues, it can be seen that the decisions made by the persons involved in De Beers may not be for the common good.   b. One of the theories of ethics that can be applied in this ethical issue is the ethics theory of Immanuel Kant, which was termed as Kantianism. It has been reported that Kant argues that a person is free when he or she is bound by his or her own will and not by the will of another person. For Kant, the only truly moral action is generated by a pure motive, where the truly moral person will do what should be done, regardless of the intensity of pros and cons of the consequences, but simply because one knows, he or she must obey the moral law (Johnson 2008). In addition, Kant’s ethical theory can be divided into three parts. The first part is the general dictum, which emphasizes that, “if you wish to act morally, act as if your action in each circumstance is to become law for everyone, yourself included, in the future”. The second categorical imperative states that, “if you wish to act morally, always treat other human beings as ‘ends in themselves’ and never merely as means”. Lastly, the third categorical imperative stresses that, “if you wish to act morally, always act as a member of a community where all the other members of the community are ‘ends’, just as you are” (Seedhouse 1998).   i. Ethics Grid. Using the ethics grid, it can be shown that De Beers has done activities and decisions that are right in operational sense but ethically wrong. Business Ethics Good Bad Good - Providing jobs for the people in the society particularly in developing countries - Providing “happiness” to consumers, as diamonds can be deemed as source of wealth, luxury, and status quo - Abusing natural resources in host countries, such as Africa to extract diamonds - Discrimination of peoples in the society Bad Consensus are realized but not implemented - Reversing policies at the expense of small-scale entrepreneurs - Trading of conflict diamonds               Decisions of the company that falls under Good/Good pertain to the decisions of the company that uphold ethics, such as providing employment opportunities for peoples around the world and sources of wealth to those who can afford them. On the other hand, the decisions that fall under Bad/Bad can be seen as the decisions that will contribute to adverse effects in the environment, to the business itself, and to other individuals, thus, can be avoided easily. The decisions that fall under Good/Bad or Bad/Good cells pertain to the decisions that must be given enough attention and importance, for they are the ones that would present conflicts.   ii. 5Ps of Ethical Power. The five Ps of ethical power include Purpose, Pride, Patience, Persistence, and Perspective. Purpose is said to be the basis upon which a particular company builds its ethical behavior. In this sense, De Beers failed to comply with its purpose, as it focuses only on its personal gains by upholding their reputation as the best supplier of diamonds in the world though pricing their goods irrationally. Another element is organizational pride, which makes every experience or situation in the company a win-win reflection of the company’s attitudes. However, because the company serves to monopolize the diamond market, it takes all the gains supposedly received by other diamond businesses in the industry. Thus, in this sense, only De Beers is able to partake in the success and profit. The third aspect is patience, which exhibits a virtue of trust to the values and beliefs of the organization. One of the activities that contradicts this aspect is the fact that the company participates in hoarding diamonds, which serves to be their most effective way of acquiring wealth in the industry. Persistence involves the creation and establishment of their brand in the market, which may serve to be what the company is effectively upholding. However, this persistence led De Beers to somehow not fulfill its corporate responsibility to the society and its industry. Lastly, the perspective of the company entitles it to have an effective strategic plan, which aims at focusing on long-term goals. However, despite the perceived effectiveness of the company’s plan, it failed to have evaluative processes in terms of upholding ethical or moral standards. An example of this is the company’s participation in the trade of conflict or blood diamonds.   iii. The Ethics Check.  This is comprised of three questions, which can be used to explain the different aspects of an organization’s decision-making and ethical standard observance (Peale and Blanchard 1988). Such questions include, “Is it legal?”, “Is it balanced?”, and “How will it make me feel about myself?”. <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> “Is it legal?” – The answer to this question is YES. This is because there are no universal laws or regulations regarding the control of De Beers in the diamond industry. In addition, De Beers has secured the necessary documents and requirements for their operation, such as permits from federal, state, civil, and local regulations and policies.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> “Is it balanced?” – The answer to this question is NO, as the decisions of the company do not create a win-win environment. It has already been mentioned that the company participates in the hoarding of diamonds and overpricing in order to sustain their position in the industry as the number 1 supplier of diamonds in the world. This situation then emphasizes that the company has monopolized the diamond industry.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> “How will it make me feel about myself?” – If I am working at De Beers and given that I know the decisions of the company in relation to the different mentioned ethical issues, I would feel that I am enslaved by a powerful opportunist, hypnotizing me to do similar things to the people in society. I would also feel that I am also responsible for deceiving them in persuading them to purchase an overpriced and blood diamond. If I am a diamond miner, I would feel that I am in a very desolate situation, being forced to do something that I do not want to do. If I am a diamond collector or savvy, then purchasing a diamond from De Beers would actually be one of my greatest dreams. However, given the many flaws or issues involved in diamonds, I would feel really devastated, but would still persist on my dreams of owning one.    </li> </ul>     Question 2: Legislative Requirements a. There are a number of applicable codes, regulations, and legislations for the business industry, particularly to the banking industry. Such legislations include the Code of Banking Practice, Telecommunications Ordinance, General Agreement on Trade in Services or the GATS, and the Consumer Goods Safety Ordinance. Such laws or policies guarantee that consumers are being protected from unfair business practices, including fraud, lack of product quality, unjust trading, and misleading advertising. 1. Code of Banking Practice – This is a voluntary code that is issued jointly by the Hong Kong Association of Banks or HKAB and the Diamond Trading Company Association. The Code of Banking Practice aims to promote good banking practices along with holding on to just and transparent relationships between authorized institutions and their consumers. In addition, the code encompasses banking services that include current accounts, savings, deposits, loans, and other types of services (Hong Kong Monetary Authority 2001). 2. Telecommunications Ordinance – This was enacted upon to improve provision for the licensing and control of telecommunications, services, and equipments. It includes guidelines regarding the delegation of authority and power, issues of license, permits and tariffs provision, consultations, control of prices, accounting practices, inspection of facilities, and practices in terms anti-competitiveness (‘Bilingual Laws Information System’ 2008). 3. General Agreement on Trade in Services or the GATS – This policy underlies internationally-traded services, such as banking, telecommunications, tourism, and professional services, which pertains to activities on how the government can sustain its rights in setting qualification requirements, in setting standards that would guarantee the health and safety of customers, and in introducing new policies in its aim to pursue other trade policies. Following the agreement involves four ways in trading or delivering services, namely, (1) cross-border supply, (2) consumption abroad, (3) commercial presence, and (4) movement of natural persons (‘Hong Kong WTO Ministerial’ 2005). 4. Consumer Goods Safety Ordinance – This ordinance compels manufacturers, importers and suppliers of certain consumer goods to provide safe and high-quality goods to consumers, and for the intended purpose. General safety standard include the manner in which the products are marketed or sold, the purpose, the use of any logo or mark, instructions or warnings, compliance to published safety standards, and the presence of any reasonable mean that makes the consumer goods safer (‘Consumers Goods Safety Ordinance’ 1997).   b. Issues surrounding Health and Safety             Some of the issues that surround health and safety in the workplace, which have been reported by the Hong Kong Occupational Safety and Health Association or HKOSHA, include near-miss reporting, behavioral risks, quality control, fatigue, and stress. It also includes injury prevention and occupational rehabilitation.   c. Comments on Voluntary Codes in Place             The existing codes overlap with other existing codes and legislations, thus, leading to conflicts. These present conflicts that directly affect how employees must be trained and have inherent contrasting ideas with the Uniform Consumer Credit Code or UCCC, which is a challenge for one-off banking services where terms and conditions are not included. The provision for third party guarantors further complicates lending activities.   d. Consequences of Possible Breaches             For Code of Banking Practice, possible breaches can be due to terms and conditions for card services, problem of debts of card holders, disagreement with exemptions issued by Money Lenders Ordinance, quoting annualized percentage rate of interest (APR) and cost indemnity provision. For Telecommunication Ordinance, possible breaches are on exemptions from licensing order on the use of low power devices, closed-circuit television systems, control of interference and fixed telecommunications network services.             For GATS, possible breaches are on transparency provisions, licensing requirements and protocols, qualification requirements and procedures and technical standards. For Consumer Goods Safety Ordinance, possible breaches are on general safety standard compliance, consumerism within Hong Kong that includes the supply of goods as retailer and not supplying of goods as new goods.   Question 3: Role of Sales Management   a. Roles of Sales Managers – Sales managers are said to have five major roles in the organization, namely, acting as controllers, as treasurer and finance officers, as credit managers, as cash managers, and as risk and insurance managers. Taking such roles, financial managers are said to be accountable in the preparation of different financial reports, such as income statements, balance sheets, and the various analyses of future earnings and expenses. In addition, they are accountable in providing summaries and forecasts in relation to the financial position of particular companies (US Department of Labor 2007).   b. Place of Sales Forecast – Aside from the general roles of financial managers as controllers, they can also be considered as treasurers and finance officers, who are responsible for directing the budget of the company in order for it to meet its financial goals. This is done by the sales manager by managing the various investments, taking care of associated risks, supervising and directing cash management activities, implementing the different activities that will support capital-raising, which would be useful for the expansion of the firm in the future, and dealing with mergers and acquisitions (US Department of Labor 2007).   c. The Role of Budget – Budget provides the main resource for the business in terms of directing it to a certain path, as guide and basis for expenses, investing or saving. Without a clear budget in mind, the business would not be able to achieve profitable returns since it cannot anticipate the risks and costs involved in its future transactions. As such, having the role of a cash manager, the sales manager takes on responsibility of accounts collection, decisions, and credit-rating. They also take on the role risk and insurance managers by managing the various programs that can help to lessen various risks and losses that can be faced due to the different business transactions and operations being dealt with by the company, along with handling the insurance budget of a given company or organization (US Department of Labor 2007).   Conclusion             Based on the discussion, it can be understood that the activities and decisions of the prestigious diamond company, De Beers can be understood and analyzed based on Kant’s theory, which states that some of the actions or decisions of the company are operationally right but ethically wrong. Some of the issues being raised include hoarding, trading of conflict diamonds, overpricing, and advertising. In this regard, it can be understood that because some of the decisions of the company may lead to unethical actions, it can be recommended that they can come up with internal policies that are directly in compliance with universally-accepted regulations.             Four main regulations or policies that banks typically comply with, namely, the Code of Banking Practice, Telecommunications Ordinance, GATS, and Consumer Goods Safety Ordinance. Through such laws or regulations, it would be easier for any company to comply with universal laws, thus, enabling it to function effectively and efficiently in its own industry. Lastly, the sales manager takes on a number of roles, which are deemed essential for the effective functioning of any organization. With such roles, it can be perceived that sales managers assume heavy responsibilities that determine the financial capabilities of a particular organization. In this regard, they are important and significant individuals in the organization.            References Bellingham, R 2003, Ethical Leadership: Rebuilding Trust in Corporations, 2nd ed., HRD Press, Inc., Amherst, MA. ‘Bilingual Laws Information System’ 2008, Legislation.gov.hk, viewed 14 April 2008, <http://www.legislation.gov.hk/blis_ind.nsf/CurAllengDoc?OpenView&Start=106&Count=25&Expand=106#106>. ‘Consumer Goods Safety Ordinance’ 1997, viewed 14 April 2008, <http://www.justice.gov.hk/eng/home.htm>. Hong Kong Monetary Authority 2001, ‘Review of the Code of Banking Practice’, pp. 1-55. ‘Hong Kong WTO Ministerial’ 2005, World Trade Organization, viewed 14 April 2008, <http://www.wto.org/english/thewto_e/minist_e/min05_e/brief_e/brief04_e.htm>. Johnson, R 2008, Stanford Encyclopedia of Philosophy, viewed 11 April 2008, <http://plato.stanford.edu/entries/kant-moral/>. Melia, KM, Thomson, IE and Boyd, KM 2000, Nursing Ethics, 4th ed., Elsevier Health Sciences, Churchill Livingstone. Peale, NV and Blanchard, K 1988, The Power of Ethical Management, William Morrow. Seedhouse, D 1998, Ethics: The Heart of Health Care, Second Edition. New York: John Wiley & Sons. US Department of Labor 2007, Financial Managers, pp. 1-3, from http://stats.bls.gov/oco/pdf/ocos010.pdf.    Credit:ivythesis.typepad.com

De Beers and Diamonds Sales Management and Ethics

Table of Contents Introduction ...

Treatment options paper

Education/Teaching Information shows that almost every public opinion poll indicates that Americans believe alcohol and drug use and abuse are critical problems in their communities – especially when the use and abuse involves young people. (Cited at Betty Ford Center, John Schwarzlose Commentary, 2004) On recognition, there are twelve million Americans age 12 or older are classified in the dependence/abuse category when it comes to alcohol; 3.2 million Americans are addicted to illicit drugs – 16 million Americans are illicit drug users, meaning they’ve used an illicit drug at least once during the previous 30 days; 2.4 million Americans are addicted to both alcohol and illicit drugs, according to the National Household Survey on Drug Abuse. The educational assumption is clear to take the debate over the disease of addiction, the efficacy of treatment and the promise of recovery to the political arena along with certain initiatives such as: -       Screening for alcohol and drug problems should be made a routine part of every primary care and emergency room visit -       Insurance coverage for the treatment of the disease of alcohol/drug addiction should be at the same level as for any other disease -       Alcohol advertising and promotions aimed at young people should be banned According to the center, there is a need to better educate young people about the dangers of alcohol/drug use, and about the disease of addiction as there is a direct correlation between underage use/abuse of alcohol and illicit drugs and later-in-life susceptibility to the disease of addiction with lot of educating to do, lot of persuading to do, political environment provides an ideal forum in waging a campaign on behalf of the millions of people afflicted with the situation.       Outcome The outcome of certain alcohol and drug abuse can be precise through such utilization of programs provided by the center since at Betty Ford Center strives to provide excellent treatment services to the entire family system impacted by alcoholism and other drug addiction.  The following represents the most current information on pricing and programs for treatment at the Betty Ford Center.    Program Length of Stay Program Cost Inpatient/ Residential 30 days ,0003 90-Day Treatment 90 days ,0003 Licensed Professionals 90 days ,0003 Clinical Diagnostic Evaluation 2-3 day outpatient evaluation & recommendation ,0004 Outpatient 8 weeks ,8005 Children’s Program (ages 7-12) 4 days (Thu-Sun) 0 No child turned away due to the inability to pay. Family Program (13 and older) Day Program: 5 days (Mon-Fri) 0 Evening Program: 4 evenings (Mon-Thurs) 0     Furthermore, by look at the statistics U.S. Department of Health and Human Services says about 210,000 patients were treated for alcohol abuse disorders at community hospitals in the United States in 2003, at a cost of about billion. It says alcohol abuse was a concomitant condition for an additional 1.1 million hospital stays. According to the DHHS, about four percent of all hospitalizations in 2003 involved some mention of alcohol problems. Alcohol and other drug use/abuse is woefully underreported when it comes to recording and analyzing hospital admissions data. First of all, one needs to include all drugs – legal and illegal – to get a more accurate picture. Second (and even more important), much of the evidence of alcohol and drug involvement in emergency room and general hospital admissions is neglected on purpose. Ironically, hospitals throughout the U.S. used to provide inpatient and/or outpatient treatment for alcoholics and addicts, but declining reimbursements from insurance companies have forced them – for the most part – to quit the alcoholism and other addiction treatment business. Another alarming statistic is that nearly 20 percent of all the beer, wine and hard liquor consumed in this country goes down the throats of children and teenagers. These facts have profound implications for parents and their children, for public policy and for the alcohol industry. Drinking alcohol represents a fatal attraction for millions of our children and teenagers. Especially in this season of senior proms, graduation nights and summer vacations, the ramifications of underage drinking are frightening. Referrals The Betty Ford Center provides sites for convenience and is not responsible for the content of these sites or the programs, agencies, or businesses they describe and does not guarantee that the referred sites will meet particular purposes.       National Association for Children of Alcoholics (888) 554-COAS (2627) www.nacoa.org NACoA is the national nonprofit organization working on behalf of children of alcohol and drug dependent parents. The website has important information for parents and a special link for kids! Rainbow Days, Inc. (214) 887-0726 www.rdikids.org Rainbow Days Inc.’s curriculum-based support groups are for children, youth, and parents who are concerned about the risks of growing up in today’s world. The purpose is to teach them the skills they need to success and stay drug free. Free Vibe www.freevibe.com Gives kids many opportunities to share their experiences with one another, to learn how to make good choices about the future, and resist pressures to use drugs. National Drug Abuse Hotline (800) 662-4357 Provides information and referrals for substance abuse issues   CITATION The Betty Ford Center is first and foremost a licensed addiction treatment hospital for persons addicted to alcohol and/or other drugs, the center is also working with scientists and addiction researchers who are conceptualizing and seeking to refine treatment protocols for addiction. The intersection of science, research and the Betty Ford Center occurs on many fronts. Available at: <www.bettyfordcenter.org> Credit:ivythesis.typepad.com

Treatment options paper

Education/Teaching Information shows that almost every public opinion poll indicates that Americans believe alcohol and drug use and...

Essay Instructions on Depict The Different Issues and Concerns Youth Encounter from Decision Making and Judgment

All papers must use a minimum of 10 references not including course material, though you may reference material from the course as well. Papers must follow correct APA style guidelines. you will write a 10-page research paper (not including title page and references) that demonstrates your mastery of the major concepts that the course covers as they relate to an issue or area of study in cognitive psychology Reasoning the Core of Decision Making and Judgment 1 Depict The Different Issues and Concerns Youth Encounter from Decision Making and Judgment A. Explain what the naturalistic decision making (NDM) entails – B. Review the difference styles and methods of decision-making 1. Explore the different Predispositioning Theory 2. Identify and Compare the different strategies of problem solving such as cognitive behavioral therapy (CBT) Rational Emotive Behavior Therapy (REBT). a. The biases of youth decision making and judgment b. The issues that control the decision-making method ll. The overwhelming consequences of decision making of the adolescent. The Criminal Decision Making and judgment of the Adolescent 1. The high-risk behaviors of the decision making adolescent 1. Steps involved in making decisions 2. Review of adolescent social cognitions 2. The peer association that influences decision-making in adolescents a. The influences of the media, on adolescent decision making and judgment. b. The decision-making and judgment of adolescents on using drugs lll. The needed guidance of youth decision making and judgment a. Decision making and judgments of adolescents towards sex. b. The necessary programs to assist in the skills necessitated to assist in decision-making and judgment References Begeny, J, Eckert, Montarello, S, Storie, & M, (2008). Teachers’ perceptions of students’ reading abilities: An examination of the relationship between teachers’ judgments and students’ performance across a continuum of rating methods. Find More Like This. Professional School Psychology, 23, Eiser, R, & Van der Pligt, J (1982). Accentuation and perspective in attitudinal judgment. Journal, Peer Reviewed Journal. 42, Finkel, E (2007).Impelling and inhibiting forces in the perpetration of intimate partner violence.. Journal, Peer Reviewed Journal. 11, Krynski, T, & Tenenbaum, J (2007). The role of causality in judgment under uncertainty. Journal of Experimental Psychology. 136, Langer, L, Zimmerman, R, Warheit, GH, & Duncan, R (1993). Decision-making orientation and AIDS-related knowledge, attitudes, and behaviors of Hispanic, African-American, and White adolescents. US: American Psychological Association, 12, Monin, B, Pizarro, D, & Beer, J (2007). Deciding versus reacting: Conceptions of moral judgment and the reason-affect debate. Journal, Peer Reviewed Journal;. 11, Nucci, L, Guerra, N, & Lee, J (1991). Adolescent judgments of the personal, prudential, and normative aspects of drug usage. Journal, Peer Reviewed Journal. 27, O’Conner, R, Fite, P, Nowlin, P, & Colder, C (2007). Children’s beliefs about substance use: An examination of age differences in implicit and explicit cognitive precursors of substance use initiation.. Bulletin of the Society of Psychologists in Addictive Behaviors, 21, Suldo & Huebner, E (2004). Does life satisfaction moderate the effects of stressful life events on psychopathological behavior during adolescence?. Professional School Psychology. 19, Thomas, R, Dougherty, M, Sprenger, A, & Harbison, J (2008). Diagnostic hypothesis generation and human judgment. US: American Psychological Association, 115, Credit:ivythesis.typepad.com

Essay Instructions on Depict The Different Issues and Concerns Youth Encounter from Decision Making and Judgment

All papers must use a minimum of 10 references not including course material, though you may reference material from the course as well. P...

Internal Marketing Management

Beverage brands and WKD Alcohol has long been one of the most popular chemicals used by human beings to enhance their moods, and it has been one of the most widespread throughout history. Ironically, it is a tranquilizer, appetizer, disinfectant, anesthetic, food, solvent, and economic commodity, as well as a potent symbol all in various ways in different cultures.  Alcohol has long been established in the UK as a whole. The importance of alcohol in the UK is emphasized by the fact that approximately 750,000 people are engaged in its production, distribution, and sale. In spite of the widespread use and general but not total acceptance of alcohol, the UK may be grouped with those mainly Protestant cultures in which there is considerable ambivalence about drinking (Heath 1995).  Alcohol drinks has an important function in UK and its people. The success of the alcohol product in the UK paved the way for the creation of the company Beverage Brands. This company was founded by Joe Woods; it offers premium soft and alcoholic drinks. Beverage Brands currently ranks as the third high ranking company in terms of being the premium package spirit market in the UK.  One product that the company wants to launch in the new market is WKD brand. This product is available in Original Alcoholic Iron Brew and Original Vodka Blue flavor.  This product has been known as an innovative brand for young people.  Beverage Brands wants to launch WKD in a newer country. This paper will discuss which country is recommendable for Beverage Brand to export the WKD product.  The country recommended is Hong Kong. This paper will take a look at the country’s culture, policy, market position and brand image. Hong Kong Hong Kong remains wrapped in an enigma. Its intermediaries of capital, who include traders, financiers, and corporate managers, have made Hong Kong the pivot of decision-making about the exchange of capital within Asia and between that region and the rest of the world (Meyer 2000). Hong Kong has survived the challenge of the 1997 Handover from British to Mainland Chinese control and the economic reversal caused by the unrelated events of the Asian financial downturn and the September 11 disaster. Although the latter has had more impact on the lives of everyday people, the Handover was a cause for a certain amount of nervousness about the future with concerns raised about change to civil, administrative and economic freedoms. The tourism market appeal of Hong Kong as a brand changed after the Handover, causing some disappointment among economic forecasters and tourism authorities. A number of aggressive new marketing strategies have been adopted, which present an artificial summary of its cultural identity, race relations and attitudes to colonialism (Hall & Tucker 2004). Hong Kong is one of the two special administrative regions belonging to China.  Hong Kong over the years has developed into a leading financial theater through the economic changes it made in the region. Hong Kong has considerable rates in terms of Total volume and revenue of Flavored Alcoholic Beverages (FAB) Sales and Per Capita volume and revenue of FAB sales. Hong Kong has a considerable volume of consumption of FAB and its related products thus Beverage Brands can acquire acceptable sales and revenue in this region. Hong Kong culture Hong Kong’s culture has the combination of eastern and western culture. The region makes use of some of its earlier philosophies and combines it with western ideas.  The western culture paved the way for Hong Kong business people to put up bars and night spots where people can have drinking sessions. Adults also have the right to purchase alcoholic drinks. The culture of Hong Kong will not serve as a hindrance on the people buying WKD products. Policy Hong Kong has no strict policy on the use of Alcohol but only those 18 above are allowed to drink alcohol. Due to the combination of cultures, the region has only age restrictions on the use of Alcohol and its related products. Market Position There was a recent drop in sales of alcoholic drinks in Hong Kong; this is due to the drop of beer sales. Beer sales affect the industry as a whole because of it having a high share.  The reduction of taxes will help alcoholic drinks sell well.  Beverage Brand should not worry about the sales in that region because of low taxes and prices of alcoholic beverages people will be enticed to try and be loyal to their prices. Brand Image At first Beverage Brand and WKD will have problems in selling the product due to the company not being much known in the area but through proper advertisements, pricing and the use of needed strategies the company can acquire the desired client and client segments.   References Hall M & Tucker, H (eds.) 2004, Tourism and post Colonialism: contested discourses, identities and representations, Routledge, New York.   Heath, DB 1995, International handbook on alcohol and culture, Greenwood Press, Westport, CT.   Meyer, DR 2000, Hong Kong as a Global Metropolis, Cambridge University Press, Cambridge, England Credit:ivythesis.typepad.com

Internal Marketing Management

Beverage brands and WKD Alcohol has long been one of the most popular chemicals used by human beings to enhance their moods, and it has b...

Fast Food Nation: Ethos, Pathos, Logos

Fast Food Nation: Ethos, Pathos, Logos Introduction               Aristotle, one of the greatest influential figure of Greek rhetoric had developed a wide range of ideas in rhetoric, one of which is the artistic proofs or the forms of proofs that the speakers create, which include ethos, pathos and logos. In this, Aristotle pointed out the three ways of influencing the beliefs and actions, these include: ethos (character and standard), pathos (emotion) and logos (reason and evidence) (Zhu, 2005, 13). In detailed, ethos pertains on the ethical appeal or the voice of the persuader, the linguistically mediated message of his or her believability, reliability and competence; pathos pertains on the emotional appeal to the audience; and logos the appeal towards the rationality of the audience (Halmari & Virtanen, 2005, 6).               It is important to consider that morality that is based on pathos can be misguided without the application of logos and transitory without ethos. Morality that is based on logos can be impotent and useless without pathos and manipulative without ethos. Furthermore, morability based on ethos can be inflexible and indisputable without pathos and logos. Therefore, it is important to consider that pathos, logos and ethos, together, are much stronger than any one of which as individual (Planalp, 1999, 191).             Fast Food Nation: The Dark Side of the All-American Meal (2001) was a popular book written by investigate journalist Eric Schlosser which evaluate the local and global influence of the fast food industry of the US. This paper will analyze how Schlosser utilizes two of the three tenets of rhetoric. Ethos in Fast Food Nation: The Dark Side of the All-American Meal               Ethos is the appeal mainly based on the character of the speaker. In the case of documentations, the ethos appeal mainly depends towards the reputation and background information about the author.               Eric Schlosser is one of the most important names of investigative journalism. He had been investigating the fast food industry for number of years. In 1998, the Rolling Stone had published its article regarding the subject, which generated more mail than any other items and articles in the history of the magazine. He is also a contributor to The New Yorker and had been working as a correspondent for the Atlantic Monthly since 1996. Due to his works and experiences, he had won a National Magazine Award for his “Reefer Madness” and “Marijuana and the Law” and has received a Sidney Hillman Foundation Award for Reporting. Above all, his works has been nominated for different National Magazine Award as well as for the Loeb Award for business journalism (McSpotlight.org, n.d.). As a result of this, it can be said that Schlosser is considered as one of the most reputable name in the industry of journalism. Furthermore, he also shows background and adequate knowledge and experience with the industry, which give him more credibility and dependability in writing about various issues regarding the topic. This pertains on him having direct contact with the people involved in his investigation, supplied with the historical facts.     Logos in Fast Food Nation: The Dark Side of the All-American Meal               Logos is synonymous towards logical arguments. It pertains on how the speaker or author’s makes sense or if the message are all based on facts, statistics and evidence. This is considered as very important in the current time, because readers and viewers are becoming more and more aware of the different facts, than just the matter of argument or entertainment. Furthermore, information can also be accessed by the readers via the Internet.             In the search of Schlosser about the bitter truth and dark side of fast food companies in the US, he considered different important areas of the said industry, not just focusing on how the industry cater the changing needs and demands of the customers, but also the different processes, procedures and policies connected to the way the products are made and the way how the employees are meet.             First, the author enables to present the different global concerns about the negative impact of fast food towards the health of the public which include obesity. He also manage to connect other important aspect of the supply chain of the company, which is the maker of flavours, wherein, he mentioned to be highly secretive, thus investigate International Flavors and Fragrances or IFF, the largest flavor company in the world. According to the author: “IFF’s snack and savory lab is responsible for the flavor of crisps, corn chips, breads, crackers, breakfast cereals and pet food. The confectionery lab devises the flavor for ice cream, biscuits, sweets, toothpastes, mouthwashes and antacids” “The beverage lab is full of brightly colored liquids in clear bottles. It comes up with the flavor for popular soft drinks, sport drinks, bottled teas and wine coolers, for all natural juice drinks, organic soy drinks, beers and malt liquors.” “In addition to being the world’s largest flavor company, IFF manufactures the smell of six of the 10 bestselling perfumes in the US, including Estee Lauder’s Beautiful, Clinique’s Happy, Lancome’s Tresor and Calvin Klein’s Eternity.” “All of these aromas are made through the same basic process: the manipulation of volatile chemicals to create a particular smell.” With this, it will not just bring up the aspect of logos but also pathos, because it will evoke feelings and emotions of fear and shock.   References   Halmari, Helena & Virtanen, Tuija (2005). Persuasion Across Genres: A Linguistic Approach. John Benjamins Publishing Company.   McSpotlight.org. Fast Food Nation: The Dark Side of the All-American Meal by Eric Scholosser. http://www.mcspotlight.org/ (Accessed on July 23, 2010).   Planalp, Sally (1999). Communication Emotion: Social, Moral and Cultural Processes. Cambridge University Press.   Zhu, Yunxia (2005). Written Communication Across Cultures: A Sociocognitive Perspective on Business Genre, John Benjamins Publishing Company. Credit:ivythesis.typepad.com

Fast Food Nation: Ethos, Pathos, Logos

Fast Food Nation: Ethos, Pathos, Logos Introduction Aristotle, one of the greatest influential figure of Greek rhetoric...

Environmental Analysis of Drambuie

Introduction Whisky is probably the product considered as most indigenously Scottish, and it is also one of Scotland’s most important industries. Although direct employment in the whisky industry is fairly modest it is responsible for the indirect employment of thousands more. Throughout the 1970s, the whisky industry was buoyant. During that decade, distilling capacity rose by fully 50 per cent, the vast majority of this increase being achieved by the expansion of existing distilleries rather than the building of new ones. The reason for this lies in the fact that the precise characteristics and individual character of the whisky from each malt distillery is highly prized, making it difficult for recent additions to establish themselves in the market (Ashcroft & Love 1993). Whisky distillers have great difficulty in forecasting future demand, because the spirit must by law be matured for at least three years before it can be called whisky, and maturation periods of over eight years are by no means uncommon. Scotch whisky has succeeded in becoming popular with young, discerning drinkers in countries like France, not least because of considerable effort on the part of the Scotch whisky industry in terms of marketing and promotion. The sale of every bottle of Scotch whisky involves an input from Scottish agriculture, the glass industry, the paper and packaging industry and a host of other manufacturing and service sectors (Ashcroft & Love 1993). There are various companies that produce Scotch whisky, one of which is Drambuie.  The paper will conduct an environmental analysis of the drinks company Drambuie for the periods before and after the chief executive Phil Parnell took over.    Environment Analysis The whisky industry Whisky distilling in Scotland has a long history and was certainly well established by the end of the sixteenth century. The small traditional distillery had a number of distinctive buildings, including floor maltings and kiln, a large building for the mash tuns and fermenting vessels and the still room where repeated distillation took place in pot stills made of copper. Because whisky has to mature for several years in the cask, particularly the single malts, and did not pay excise duty until it was sold, distilleries had to provide large bonded warehouses where the spirit could be kept under lock and key. The blending of whisky, using grain spirit and a number of single malts, was not necessarily done at the distillery, but from 1860 was carried out, along with bottling, in bonded warehouses often in ports. The initial malting processes in distilling were similar to brewing, but here, too, floor maltings are now almost completely replaced by the pneumatic or drum process (Palmer & Neaverson 1994). For the initial drying of the germinated grains, anthracite was used as fuel followed by peat to impart the required flavor. Malt-houses existed alongside many Scottish distilleries, but the malting process, as in brewing, is now generally carried out by specialist maltsters in the east of Scotland. The Scotch whisky industry has become increasingly concentrated into large production units centralized in the barley-growing area of eastern Scotland. However, many small traditional distilleries remain elsewhere from the nineteenth century, a few operational, others surviving as tourist attractions and some adapted for other purposes. In the south and west of England, the traditional drink produced was cider from locally-grown apples. The apples first had to be crushed to a pulp and this was originally carried out in a horse-driven mill, which consisted of an edge runner in a circular stone trough. These are still familiar sights in cider-making areas, although often now used for decorative purposes. The pulp was then placed in Hessian bags and the juice squeezed out in a hand-operated press, examples of which may also still be seen on many farms. The apple juice was then fermented in casks, supplied by local cooperages. The industry is now almost entirely factory-based but still located in the traditional cider-making regions (Palmer & Neaverson 1994).The Scotch whisky industry provides a good example of the strategic interdependence that often is present within regional clusters. Some firms distill whisky and sell it to blenders, whereas others firms do not do any distilling, but focus on blending. Other firms are partially integrated, supplying part of their own needs and sourcing the remainder externally. The whisky firms engage in a complex web of purchase and trade arrangements. The blend masters from the different companies know each other and are familiar with each others’ operations. They frequently discuss the availability of different types of whiskies and work out trades. One company will often supply another with the understanding that there would be reciprocity at a later date. The proximity of major industry participants and rapid information flows ensure that attempts at opportunistic behavior would be punished swiftly and surely (Chandler, Hagstrom & Sölvell 1999). The whisky industry is one of the most hotly contested industries because of the high success and attractiveness of whisky and other liquor products.   Macro environment analysis PEST Political Drambuie made sure that they were aware of the political situation of every country they have operated in and the company has made sure that it has a reasonable position with regards to political issues Drambuie is continuously prepared for any problems concerning the political sector. Any political noise is irrelevant to the company. Unless the political environment will change rules that relate to their operations Drambuie prefers to stay away from such subject. The political environment has allowed the liberation of the market, liberation of the market paved the way for improvement of services. The laws of the US and other markets for Drambuie are not a hindrance to the growth of the company. . The laws of the US and other markets for Drambuie  provides the much needed help in making sure that the company will achieve its goals. The laws of Drambuie’s markets tend to give guidance to the organization so that the company can achieve its goals without major issues from the government.   Economic Drambuie Liquor Company can be said to be economically stable for the past years after Phil Parnell became chief executive. The appointment of Parnell introduced some changes that benefited the economic stature of the firm. It is not only the internal economic situation of the company should be taken note of but also the economy of the country. Drambuie Liquor Company checks first the economic status of the country they are operating in before making decisions if they will have a branch in that area and since the US recently has been doing well economically then there is no reason for Drambuie Liquor Company to abort entering that market. The economic forces can dictate the actions of Drambuie Liquor Company if the economy is doing well then Drambuie Liquor Company can offer new services but if the economy is in a worse state then Drambuie Liquor Company have to reduce unnecessary expenditures and un important actions.  The economy of Drambuie Liquor Company’s markets has given opportunities to whisky and Liquor The status of the economy has paved the way for various makes of liquor products to prosper in the region and help in proving that Drambuie Liquor Company is one premier company in the liquor industry.   Social The socio cultural force serves as the conscience to Drambuie Liquor Company. This force ensures Drambuie Liquor Company will not do things they know can ruin Drambuie Liquor Company’s reputation with the society. This force ensures that Drambuie Liquor Company will consider first its environment before making any decisions. Drambuie Liquor Company makes sure that the products and services they offer will be accepted by the public. Drambuie Liquor Company does not authorize the delivery of some products they know will cause outbursts or complains from different groups in the society Drambuie Liquor Company also engages in social activities that tend to develop a better relationship between them, the clients and the society they are operating in. Technological Drambuie Liquor Company offered new innovations in its technological aspect and introduced new concepts with regards to its industry. Drambuie Liquor Company through Parnell introduced better manufacturing systems that ensured that they create the best products.  It also makes use of commendable safety and security systems to the plants and other vital facilities.  Since technology rapidly changes. Drambuie Liquor Company makes sure they are updated to what is happening and they can adjust to these changes. The technological forces dictate the trends in the liquor and whisky industry, these forces is the one that determine what should be used to create a product. Drambuie Liquor Company relies on the products created by the technological forces.   What is the five forces analysis? The five forces address the question why are some markets more attractive than others?’ The collective strength of these five competitive forces determines the ability of firms in an industry to earn, on average, rates of return on investment in excess of the cost of capital (Kermally 2003).  The five forces analysis developed by Porter is a framework for the industry analysis and business strategy development.  The five forces compose of factors that affect the company’s ability to satisfy clients and gain profit.  The five forces help the company in determining the competitive intensity of the market. The essence of Porter’s analysis is that the strategizing business needs to assess the strengths of these separate five forces in its specific industry context and then to position itself/check them/alter them in its favor so as to optimize its own sustainable competitive advantage within the structure. The Five Forces Framework may thus only provide a one-sided or distorted perspective on strategy options that need to be considered by an international business in the contemporary setting. The extended Porter analysis provides a valuable general framework for the analysis of the strategic management of international businesses in the contemporary era, providing an understanding of the growth of international competition and the emergence of global firms in some industries (Mudambi & Ricketts1998). The five porter analysis is beneficial because it is one of the models that are easy to learn and understand. It does not require much specialization to understand the model.  The five forces analysis helps the company to analyze their current situation in an organized and structured way.  This kind of analysis provides the reason for people to be attracted into the company and the industry it belongs to. The five forces plays a big part in developing strategic options that can be used to improve the performance of the company or influence the movement of the company into its desired direction. Moreover the five forces provide the leaders of the firm on what can be its opportunities and threats so that they can advance or maintain their competitive advantage. Lastly the five forces provide what aspect of the company or the industry can be profitable and what aspects of the firm should be changed in order to achieve relative success. The following part will concentrate on the five forces of Drambuie Liquor Company   Porter’s five forces Potential Entrants             Drambuie Liquor Company has been around for a quite some time and the company is not greatly affected by the new entrants. The influence of potential entrants to the company is weak.  Any new entrant will have difficulty in gaining clients not unless they can provide innovative strategies that can thwart Drambuie Liquor Company from its position and get the company’s clients. The services offered by Drambuie Liquor Company is unique in terms of appearance if any new entrant want to compete with Drambuie Liquor Company’s standards of products and creation of products they need to have a huge investment to create products that have the same caliber as the products of Drambuie Liquor Company.  They also need to make use of better strategies that will give them an instant brand identity.   Competitive rivalry             Competitive rivalry has a high influence on Drambuie Liquor Company. The company has high concerns on its competitors since there are many competitors in Drambuie Liquor Company’s industry.  The competitors contribute to the current problems of the company since it already acquired a good percentage of the buying public the company has some assurance that it will not easily lose to competitors.  But if the company will plan to enter a new market, competitive rivalry will become a concern to the company. Drambuie Liquor Company through their chief executive   Phil Parnell needs to make sure that it makes cautious decisions in current and future markets. Substitutes Substitutes give high influence to Drambuie Liquor Company and its different products since substitutes can make a company lose the clients it has. The substitutes can be in the form of other liquor products. The whisky and liquor industry is continuously growing and continuously changing strategies. Substitutes come in the form of beer, wine or other intoxicating products. Drambuie Liquor Company makes sure that the substitutes won’t give them much problem. They do this by proving that the products they offer and the technologies they use to provide the service are the best quality and are better than substitutes or any other company.   Bargaining power of buyers The bargaining power of buyers highly influences the whisky and liquor industry and Drambuie Liquor Company It shows how the industry tries to create good relationships with clients. As much as possible the company maintains reasonable prices for their products. They also have promos that intend to make the clients have second thoughts on purchasing products from other companies.  When the clients try to dictate lower prices Drambuie Liquor Company tries to know whether it is reasonable. Drambuie Liquor Company sees to it that a big part of decisions on prices of whisky and other products will be based on suggestions of the clients. For Drambuie Liquor Company the bargaining power of its buyer is gradually increasing as they are more and more similar types of products and services available in the market. Bargaining power of sellers The bargaining power of sellers highly influences Drambuie Liquor Company. The company makes sure that their suppliers have high bargaining power through helping them show their importance in the industry Drambuie Liquor Company makes sure that the price being asked for a material has the same value as the same materials’ quality. This will ensure that budgets will not be wasted.  Drambuie Liquor Company has to be aware of its partnership with its materials partners. Drambuie Liquor Company has to make sure that every part of the agreement with the partners will be followed. Any adverse changes or violations in the partnership agreement will incur a certain amount of risk to Drambuie Liquor Company   SWOT Analysis Strength The company’s strength includes its integrated management systems (IMS). This system makes sure that the company’s systems are maintained well so that it can meet expectations. The IMS focuses on the systems of risk management, quality, injury prevention, damage control, emergency plans, and environmental safeguards. The IMS helps Drambuie Liquor Company have advantage against competitors through preventing any delay in the operations of the business.  A strength for Drambuie Liquor Company is its well established values. The values help the company achieve its goal and maintain its stature in the liquor and whisky industry. A strength for the Drambuie Liquor Company is its high regard for its community wherein the company provides sponsorships and the provision of education opportunities. This ensures that the company has a good relationship with its environment. Moreover a strength for Drambuie Liquor Company is its high regard for the safety of the workers. The company has acquired certification for its health and safety practices, this shows that the company uses strategies that have high standards towards the personnel and contractors. Lastly a strength of Drambuie Liquor Company is its website that is informative and attractive.  The website provides information about the company and information on the services of the port and how service is delivered.   Weakness Drambuie Liquor Company main weakness is minimal advertisements. The company doesn’t use many advertisements that can help it be known to more people.  A weakness of Drambuie Liquor Company is the limited area that has been reached by the company. The company has a small market; this makes it hard for the company to reach newer clients. The company can only offer its product to those of age to drink liquor products. This prevents the company from offering products to diverse clients and clients of all ages and gender. It also hampers the chance for the company to innovate its products.  Lastly a weakness for Drambuie Liquor Company is its culture of putting much power on the top management. The company has the tendency to put less decision making capabilities to their divisions. The top management cannot always have the information needed to make decisions on the company’s processes; some decisions may need some inputs from other sectors in the firms, Opportunities  An opportunity for Drambuie Liquor Company is to find out more ways to give a distinctive look and features to their products. The company can continue to make sure that their products are uniquely packaged. The company can create attractive and trendy packages that will attract their target market.  By doing this the company will have competitive advantage over other firms. An opportunity for the company is to improve the features of their website. The website can be improved by adding online communication systems that will help the company communicate with perspective and regular clients or retailers. By doing this it can attract more clients and retailers from various parts of the world. An opportunity for the Drambuie Liquor Company is to continue to make use of newer technologies that will provide better service to clients. The Drambuie Liquor Company can use the advancements in manufacturing facilities and technologies to make sure that the clients will achieve satisfaction. The company can make use of newer technologies to create the best product possible. An opportunity for the Drambuie Liquor Company is to continue to reach newer markets where it can offer its products.  The company should consider making products that can be given to minors. This will divert itself from other companies and will help the company achieve higher income rates. Lastly an opportunity for Drambuie Liquor Company is to increase public knowledge about the company and the product it provides. This could be done through the use of internet and other media. This will help   have higher rates of profit and it can help the company maintains its business survival. Threats Globalization affected greatly almost all the industries of the world. It brought about the need for change. The changes created a new competitive environment in this industry. Globalization is one of the threats to Drambuie Liquor Company. Globalization can be a threat to port because Globalization can produce alternative intoxicating that can reduce the need for Whisky. A threat to Drambuie Liquor Company is the competitors. The competitors will try everything they can to gain a better standing against Drambuie Liquor Company. The competitors might discover systems that are better than Drambuie Liquor Company’s system. Drambuie Liquor Company needs to be always prepared for the threats brought by other ports. The threat to the company includes the laws in the country they are operating in. There may be some future laws that will hinder the creation of products. The laws may be used against production of liquor products. There maybe laws that can change the age restriction for those who will drink liquor. If the age restriction is lowered, this means that younger people can buy the company’s products and this will add more income to the company but if the age restriction is heightened the result would be a need to change the target market for the firm.  Another threat to the company is the tariffs and taxes that the company has in different countries, each countries has its own rate of taxes and tariff that creates additional expenses for the company. A threat to Drambuie Liquor Company is the environmental issues that might be raised by certain groups. The environmental concerns on the creation of liquor products can be used as propaganda against the company.    References Ashcroft, B & Love, JH 1993, Takeovers, mergers and the regional economy, Edinburgh University Press, Edinburgh.   Chandler, AD, Hagstrom, P & Sölvell, O 1999, The role of technology, strategy, organization, and regions, Oxford University Press, Oxford, England.   Golembiewski, RT 2000, Handbook of organizational consultation, Marcel Dekker, New York.   Kermally, S 2003, Gurus on marketing, Thorogood, Thorogood, London.   Mudambi, R & Ricketts, M 1998, The organization of the firm: International business perspectives, Routledge, London.   Palmer, M & Neaverson, P 1994, Industry in the landscape, Routledge, New York. Credit:ivythesis.typepad.com

Environmental Analysis of Drambuie

Introduction Whisky is probably the product considered as most indigenously Scottish, and it is also one of Scotland’s most important in...