A Reflection of My Spirituality

Waking up each morning, I thank God for giving me another day, for the gift of life and all gifts of nature. Truly, all around me comes from God who has created everything.The Almighty has given this earth for me to develop and cherish. Human life itself is a great miracle and everyday this miracle happens every minute across the globe. God is manifested in the beautiful sceneries of nature, from the mountains to the seas to the universe to the birth of a child.I see the purpose for which God has shared His splendor and presence in me through these wonders of nature. It is because He wants me to get close to Him, to know Him better, and to love Him more. He is telling me that He is everywhere and that He is always there when I needed His help.Nature is the mirror for which God reflects Himself so that I could recognize Him and His glory. When problems arise I would usually commune with nature to seek refuge watching the waves and listening to the waters in the beach or go mountain cl imbing and see the world from above. Just by appreciating God’s handiworks is enough for me to see life much better amidst the uncertainties that lie ahead. God communicates through our environment.From the beginning, God has created this world for us to nourish but now we neglect this duty and could possibly face annihilation as it is slowly happening this very moment.Taking this walk with nature enriches my spirituality because nature itself is spiritual and Godly since it is not made by man. This walk is a learning experience that strengthens not only my knowledge about God but most of all my faith in God.Through this walk I came to understand that the future of mankind depends solely on the condition of our environment. The Almighty has given us paradise but we have turned it into a swamp. In nature, He has provided us with the necessity to live. We need to develop and use the resources wisely but we have come to abuse these resources for our personal gains and hasten the destruction of our environment. Is this how we repay God for giving us this earth so we could live in His presence?The simple message I received from this walk with awareness is that this world will end if we fail to stop the exploitation and cruelty to our surroundings. It is very unfortunate that our planet has come to this and we are now experiencing the effects of pollution and global warming. We contributed much to polluting the earth but at the same time we can solve this problem by changing our lifestyle and way of thinking that nature is God’s gift to us.However this awareness did come easy because for many years I did not really see the value of nature in my life. I have taken for granted its meaning just like clothes that you can dispose of and buy a new one. In this time of modernization, I find it difficult to feel God’s presence. I am too distracted more often by the new technology and commercialization that I forget He existed.You could hardly see the be st of nature in cities when all you can see are buildings. Indeed, this is a great challenge in practicing my spiritual life where concentration is hard to achieve. The best thing is that I try to live my faith each day. At times I fail but I move on and try again.

Genetically Modified/Engineered Foods Essay

Genetically modified food products first emerged in the commercial markets some time around the mid 1990s and were a hot topic among producers and potential buyers alike. A decade has passed ever since and the debate around genetically engineered foods shows no signs of retreat. Initially, there was much enthusiasm to these foods due to the many advantages expected from these modified food crops, such as resistance to pests and the use of herbicides for the control of weed production in addition to the high nutritional value. Proponents of this new technology of food production were confident that its employment would yield extremely positive results including improved crop yield, agrochemical use and the production of highly nutritious food crops even in nutritionally drained soils. However, as time elapsed, research and study began to be conducted on these foods and it was soon brought to light that these foods are not safe for consumption, resulting in a backlash against the use of these foods. Opponents argue that the dangers associated with genetically engineered foods far outweigh the few benefits. The methods of production of foods due to gene slicing biotechnological are new and hence, the products obtained from them cannot be appropriately tested by the old methods. There is also a growing concern that genetically modified foods would create a monopoly of food supply in the hands of a few large companies which would cause tremendous harm to smaller farmers and agriculture businesses. The matter has become a political issue in many countries due to this fast, which has the power to influence the lives of millions of farmers across developed countries. The paper attempts to analyze both sides of the argument by highlighting some of the advantages and disadvantages of genetically modified foods. The primary worry is of course the danger and risk to the original composition of crops which would be substantially modified by the new techniques. The debate regarding genetically modified or engineered foods is getting more serious as there are numerous concerns regarding the environmental and health risks of food produced from this new technology. The primary causes of problems are believed to rise due to the antibiotic resistant genes used in the crops which are altered and modified. The production process also includes increased use of pesticides while planting the many varieties of modified plants (CFS 2000, 2004). Some authors have stated that genetic modification of foods is the new technology in agriculture which is â€Å"here to stay† (Schmidt 2005) ignoring the possibility of allergens which have the potential of triggering allergies in people due to the consumption of genetically engineered species of crops and agricultural products is a cause of concern. The growing episodes of food contamination prove that genetically modified foods are not absolutely safe to consume. The contamination of food due to the altered species of corn termed as ‘Starlink’ was the cause of contamination in numerous food products and due to which the company Aventis had to suffer huge losses to pay one hundred and ten million dollars in order to compensate the losses of farmers, food processors and grain handlers (Harl 2003; Jacobs 2003). There have been other contamination incidents which have resulted in severe health and financial problems to the biotech industry. Gillis (2002), Nichols (2002), and Greenpeace (2005). Besides, researchers are apprehensive of the testing methods of the FDA due to the alterations in the composition of these modified foods which subsequently results in changes of â€Å"toxicological, immunological, or nutritional concern† (Schenkelaars, 2002). The testing techniques of genetically modified foods by the FDA has attracted severe criticism for by top level scientists who are opposed to the process of gene alteration in food production and agriculture (Alliance for Biointegrity 2004). The general public too is apprehensive over the techniques used in the manufacture and production of genetically engineered foods (Schmidt, 2005). Schmidt (2005) explains that biotechnology enables scientists to employ methods for combination of genes from unrelated species of plants, animals and microorganisms for which many methods are used. The genes can be artificially combined using natural techniques to allow bacterial and viruses to â€Å"penetrate cells† or electric shocks â€Å"to destabilize the cell membranes† which would help in making the cell membranes â€Å"permeable†. All these artificial techniques facilitate the permeability of the cell membrane which otherwise evades the entry of any foreign genes or DNA from entering the original structure of the cell (Schmidt, 2005). Genetic engineering would mean going against nature for the creation of new substances, the validity of which remains an unanswered question. What is worse is the fact that the natural boundaries of the entire animal and plant kingdom will be at potential risk, since genetic engineering provides scientists with the ability to combine the genes of any existence on the face of the earth. The gene of a potato can be combined with the gene of a fish by introducing the former into the latter or vice versa. This scientific manipulation of foods is a growing concern among many scientists who feel that genetic alteration by humans can increase the levels of natural toxins in plants or allergens in foods. Genetic modification also increases the potential to enable plants and natural foods of â€Å"switching on genes that produce poison† (Shan, 2006). Other dangers of engineered foods include â€Å"antibiotic resistance† among foods, â€Å"increased pesticide residues†, â€Å"genetic pollution† and damage to soil fertility and the beneficial insects which would all subsequently cause â€Å"socio-economic hazards and ethical hazards to the entire human community† (Cummins 1999). Additionally, injection of chemical hormones like the IGF-1 in animals such as the cow increases the risk of serious diseases like cancers of the breast, colon and the prostate among consumers (Cummins 1999). Proponents of genetically engineered foods argue that these foods grown without the use of chemical additives are â€Å"superior†. The addition of food colors such as Para Red and Sudan III to naturally grown foods have resulted in several hazardous incidents as reported by the BBC News (2005) and since genetically produced foods are grown and stored without the use pesticides or fertilizers and any kind of artificial additives, supporters advocate its use. Reports regarding the growing cases of diseases such as asthma (Salam et al 2004), cancers (Muir 2005) and other harmful diseases caused due to farming techniques and pollution is a prime concern to the proponents of genetically modified foods. Heaton (2001) affirms the many health problems which occur due to the growing use of pesticides in natural foods including hormone disturbances, repression of the human immune system and other neurological damages. The chemicals used as pesticides in naturally produced foods include the likes of DDT which has been banned by most of the developed nations, and others such as lindane and astrazine (Shan, 2006). The pesticide residues such as organophosphates found in foods have been associated with hazardous effects such as reduced male fertility, cancer, abnormalities of the fetus, and even Parkinson’s disease (BMA 1992 and Robbins 1991). Additionally, high exposures of the farmers to pesticides have also enormously increased the risks of these farmers to cancers and other harmful diseases associated with them. (Schreinemachers, 2000; Alavanja et al. ,2003). Nutritionally too, genetically modified foods are believed to fare better than their natural counterparts. Research confirms that the nutritional value of genetically modified and grown foods is more than naturally grown foods. Worthington (2001) affirms that organic crops contain far more vitamins, minerals and other nutrients which are beneficial for the functioning of a healthy body. Besides, organic foods are believed to contain much less percentages of nitrates than naturally produced foods (Williams, 2002). The report by the Soil Association compares the nutritional value of genetically modified foods and naturally produced foods (Heaton 2001). Since many food products contain less water, which is why they shrink on storage, genetic engineering of foods tends to alter the structure of the plants so that the ability to retain more water in increased. This would also prevent the food from shrinking on being cooked. Genetic farming and modification of foods also restrict the use of drugs, especially in animals which reduces the risk of infections to humans. Besides, genetically engineered foods and products have higher levels of flavonoids, which act as a natural defense mechanism against the pests feeding on them (Shan, 2006). Flavonoids also play a crucial role in the prevention of cardiac problems and fatal diseases such as cancer. These foods also tend to have greater ant oxidation properties, due to the antioxidants like lycopene and phyto-nutrients like tannins present in them (Shan, 2006). Genetically modified foods have been an issue of debate over the possible advantages and disadvantages they may have on the health of humans. Thus, while it is important to adopt new technologies and procedures to better human life, the health and quality should not be compromised. It is the responsibility of regulatory authorities to adopt means and measures for appropriate testing of foods so that the general public gets maximum benefits from advancing technological processes without having to compromise health and wellbeing.

Management info Systems Project WK3 Essay Example | Topics and Well Written Essays - 250 words

Management info Systems Project WK3 - Essay Example st important advance in e-commerce with regards to SCM is the increasing use of electronic marketplaces that enhance many suppliers and thousands of customers. However, the significance of the marketplace is to have numerous suppliers competing over prices. Therefore, the integration of e-commerce, value chain analysis and supply chain management automate the purchasing and selling of goods and services by an organization. Therefore, more research questions come in mind 1) what are the impacts of e-commerce in an organization, 2) what are the beneficial opportunities for application of e-commerce in a business etc. These questions fascinate me and that is why I am so interested in researching on the same. Bidgoli on chapter 8 thoroughly explores e-commerce and differentiates it with ancient models. This chapter will give me an opportunity to understand e-commerce so as to apply it in supply chain management. Geunes researches on the application of supply chain and e-commerce in an organization. The book provides answers to my research questions because it expounds on the benefits of integrating e-commerce and supply chain management and the benefits that result from this integration. Rekha further has explored the impacts of e-commerce on supply chain management. He has highlighted and provided insightful thoughts that will greatly assist me in my final project. Therefore, i belive that this journal will help me achieve my

Assignment 4 Example | Topics and Well Written Essays - 250 words

4 - Assignment Example This is why each society must have a set of rules to govern the code of conduct. Law in a society is an indication that everything should follow a specific order and the opposite of this is chaos. G- The Station, February 20, 2003, West Warwick, Rhode Island is regarded as one of deadliest nightclub fires that killed about 100 people . The fire was caused by pyrotechnics that ignited flammable sound insulation foam in the ceilings and walls. C- The first 72 hours following the landfall of Hurricane Katrina in New Orleans, Louisiana. This is regarded as the most deadliest and destructive Atlantic hurricane. At least 1,833 people died and property worth $ 81 million was destroyed. D -New Year’s Eve, Times Square, New York City, New York . This is a date where people all over the world to admire the dazzling lights from the Times Square. It is a symbolic centre of this city and regarded as a global tradition. H- Kiss, January 27, 2013, Santa Maria, Brazil this was a fire that started between 2:00 and 2:30 that killed at least 239 and injured 169. It is regarded as the most devastating fire disaster in the history of Brazil. A- The execution of Timothy Mc Veigh – Timothy Mc Veigh was a domestic terrorist who detonated a truck bomb in Oklahoma city that killed 168 people and injured over 800. It is one of the deadliest act of terrorism within the United

The Breakfast Club Film Review Coursework Example | Topics and Well Written Essays - 500 words

The Breakfast Club Film Review - Coursework Example The plot is basically about teens and growing up pains. The five main characters in the film are Andrew Clark (Emilio Estevez), Claire Standish (Molly Ringwald), Brian Johnson (Anthony Michael Hall), John Bender (Judd Nelson) and Allison Reynolds (Ally Sheedy) who are brought together one Saturday morning at the Shermer High School library for â€Å"detention† – a kind of penalty imposed on each one of them for having done an unacceptable deed. Each of the characters come from different cliques, and are of different types of individuals – the wrestler, the prom queen, the nerd, the outcast and the rebel – but as the story unfolds, they find out that they actually have similarities, common angsts and can actually be friends and confidantes. From strangers, the story ends with some discoveries, transformations, and finally, some kind of connection between these teens. At first glance, the film seems to be a boring one with much talk and not too much action t aking place. The issues brought up by the characters are just too petty and would just send the viewer to shake his/her head in disbelief. As the movie goes along, however, the viewer gets to know more about the characters and it would be unlikely for anyone not to identify with the issues these youngsters faced.

Process Business Integration Research Paper Example | Topics and Well Written Essays - 1500 words - 1

Process Business Integration - Research Paper Example   The 21st-century leadership practices can also be observed to emphasize reinventing effective measures in order to establish a better communication channel between the customers, suppliers and other groups of stakeholders. This apparently advocates corporate measures to integrate the supply chain functions at almost every phase. The two most apparent drivers of these changes in organizational leadership practices can be identified as the continuous development of global business culture and the trend of continuous expansion within the corporate world (McAdam & McCormack, 2001). Emphasizing the present transformational changes in the contemporary business environment, the primary purpose of this essay will be to critically identify the key areas of business process integration in relation to the unconventional approaches of supply chain management practiced by modern organizations. In establishing this particular aim, evidence provided by McAdam and McCormack (2001) and Cagliano, Caniato, and Spina (2006) will be referred and critically reviewed with prime significance throughout the study. When addressing the linkage between business process integration with supply chain management practices in the modern era, McAdam & McCormack (2001) were able to connote few noteworthy aspects, which can be examined as the major determinants of the currently exhibited challenges and proficiencies of the corporate world. McAdam & McCormack (2001) subsequently explained that an integrated supply chain management ensures the improvement of operational functions to a substantial extent offering added managerial control on organizational performance. Based on their empirical study, McAdam & McCormack (2001) were of the view that modern business organizations need to focus on developing at least two significant aspects in order to sustain in this competitive era. These aspects comprise the supply chain management procedure and integration of business

Separation of Ownership and control, and agency costs Assignment

Separation of Ownership and control, and agency costs - Assignment Example The management team is responsible for running the business and taking decisions as and when required but have almost negligible claim on profitability. In such organisations, separation of ownership and control is clearly visible. Many authors have described this relationship, between the shareholders and the management of the firm, as ‘pure agency relationship’. This concept will be further discussed in the essay with the help of ‘agency theory’. The concept of separating ownership and control was aimed to assist the firms to achieve the sole motto of profit maximisation. This concept held the view that organisations should strike a balance between profit maximisation and development of society, which is corporate governance. In the later section, different theories associated with separation of ownership and control will be analysed to determine the cost of agencies. The concept of separation of ownership and control was first introduced by Berle and Means in the year 1932. The agency theory explains that the owner (shareholders) of the firm is the principal and the one who take the responsibility of running and managing the business (management) is the agent. Both the principal and the agent think of their personal gains. The Principal tries to design the governance system for maximising his utility. In the same way, the agent tries to manage the firm for fulfilling his utility. If utility of both principal and the agent coincides, they both enjoy increment in their individual utility. However, often the utility of the agent differs from that of the principal, and the agent tries to maximise his utility at expense of the principal. To minimise such incidences, principal needs to introduce internal control, which results in an extra cost. Thus, the concept of separation in ownership and control is related to agency cost. For minimising the cost, the agency theory introduced different governance to be followed by the company. Often companies

Construction Defects with Homeowners Case Study

Construction Defects with Homeowners - Case Study Example The third year and for up to the tenth, the major structural defects are covered including foundation walls, load-bearing portions, supporting beams and foundation footings. The homeowner should file for claim in the covered period, but may notify the local construction official for foundation damages that may or may no longer be covered by the warranty. The law covering construction of foundation is Title 5 Community Affairs Chapter 25 Regulations Governing New Home Warranties and Builders’ Registration or N.J.A.C. 5:25. Specifically, the Act â€Å"prescribe the form and coverage of the minimum warranty established by the Act; govern procedures for the implementation and processing of claims pursuant to the warranty; establish requirements for registration as a builder, and procedures governing the denial, revocation and suspension of builders registration; and, establish the requirements of private alternate. Adams (2010) cited many builder-contractor liabilities in the cas e where foundation issues occur among homeowners. Home building foundations usually last for tens or even hundreds of years when done properly. But â€Å"serious and difficult to fix [†¦] if built poorly [†¦and] threaten the stability of the home and the homeowner’s investment,† (Adams, 2010, P 1). One of the more critical issues about foundation problems is that it only becomes apparent after several years of completion and even occupancy of the home. The homeowner may be left unsure of what recourse may be available.

The Role Of Technology In Education Essay Example | Topics and Well Written Essays - 750 words

The Role Of Technology In Education - Essay Example Nagel said, â€Å"Technology is woefully inadequate in most classrooms despite the progress schools have made in bringing computers and the Internet to students and staff, and these groups need still greater access if technology is to become a reliable tool for teaching and learning.† A lack of technology use by teachers to communicate instructional activities in the classroom is evident. Teachers fail to use technology due to inadequate training or staff development activities provided to teachers. Educators reported inadequate resources in the area of education technology support, including inadequate professional development or training. Education administrators reported that after teachers attended professional development activities and training for technology support or integration, only 61percent felt prepared to make effective use of educational technology for instruction.Despite the disparities in schools that use technology and those that do not, teachers remain chal lenged with the efforts of using various technologies in instruction, and using various assessment strategies using technology in the classroom. For whatever reasons, teachers use far less technology than is expected to result in minimal technology exposure for students in public schools, which causes a halt and a fall in students’ academic success. For the high percentage of minority students without access to the Internet or a computer except at school, this is a serious concern that requires immediate investigation. Teachers are doing a grave disservice to these students. The relations among and between students and teachers is devalued without the use of technology intertwined with the curriculum. School communities are suffocating in our society due to the lack of technological support required to assist with students’ academic success. Recommendations As the world continues to embrace the ever-changing technological aspects of society, the methods used to teach students must also change.

Occupy Wall Street Movement Assignment Example | Topics and Well Written Essays - 1500 words - 2

Occupy Wall Street Movement - Assignment Example Thus, it can broadly be stated that all the aforementioned issues ultimately paved the way towards the emergence of this particular movement (Kim, 2011). The paper intends to analyze the moral as well as the economic implications involved in the movement. Various aspects such as the analysis of the identified implications against the Kantian, utilitarian as well as virtue ethics and the determination of the individuals or entities liable for income disparity along with inappropriate wealth distribution particularly in the US will be taken into concern. Besides, a suggestion regarding an equitable outcome from the movement that would be appropriate for capitalistic society and the prediction concerning whether the movement will continue, fad away or turn into another perspective will also be discussed in the paper. The moral implications that have been involved in the movement i.e. Occupy Wall Street movement contain numerous important aspects that include the contemplation of individual responsibility instead of moral responsibility and predominance of self-interest. With regard to the moral implications, the movement has been viewed to remain significantly focused upon determining the role of hierarchical authorities that is based upon wealth or different sources of power. In accordance with the viewpoints of the protestors of the movement, the role of any government is to safeguard as well as to empower every citizen of a nation through enhancing different avenues of growth. In this similar context, the areas include health as well as education, transportation, public infrastructure, trade policies, art and culture, scientific research, public lands, and resources. It has been viewed that the movement relating to moral implications has been based upon certain moral guidelines.

Jimi Hendrix and His Life Accomplishments Essay Example for Free

Jimi Hendrix and His Life Accomplishments Essay Jimi Hendrix was one of the most influential and talented musicians of the 20th century, and through his work he made rock music what it is today. His talent with a guitar was what made him so popular in his own time. The reason he became a rock and roll legend in the 20th century was because of his new style, outrageous performances and his powerful lyrics which captivated his audiences. His new style of music involved, the extensive use but sensitively nuanced use of feedback, distortion, and other electronically manipulated sound effects. (Hendrix, Jimi). Some found the performances he put on to be crazy or insane, but his fans found them to be inspiring. Nevertheless, The true power of his genius lay in his musical and lyrical candor. (Fricke). On November 27, 1942 at 10:15 Johnny Allen Hendrix was born in King County Hospital. Johnnys name was changed 4 years later to James Marshal Hendrix, the name he is better know by today. Just a few months after Jimi turned 16 his mother Lucille died. Jimi got his first guitar later in the year of his mothers death. (Time Line) Many people think his heartbreak over his mothers death is why Jimi turned to the guitar and writing music because, At its core, Hendrixs music was all about the blues. (Fricke). A year later in 1959 Jimi played in his first concert with The Velvetones. Then Jimi dropped out of high school to join the army. He was only in the army for about 3 months because he got injured during a mission and was discharged. Less than a year after being discharged from the army Jimi began to play on the R B circuit. After about 4 years of that Jimi formed his own band called Jimmy James and The Blue Flames. In this band is where he was discovered by a man named Chas Chandler. (Jimi Hendrix Biography) Then on October 6, 1966 Jimi Hendrixs most popular band was formed, Jimi Hendrix Experience. Over the course of about 2 years the Jimi Hendrix Experience released their 1st, 2nd and 3rd singles. They also toured in the UK, US, with the Monkeys and Jimi had his now legendary performance at the Monterey Pop Festival. In late 1968 and early 1969 Jimi received Artist Of The Year, Performer Of The Year, and World Top Musician awards. Jimi Hendrixs career then began a downfall as the Jimi Hendrix Experience broke up and Jimi got arrested in Toronto. Jimi formed his last band called Band Of Gypsys and they played a few big concerts in 1970. Then Jimi played his  biggest concert in front of 500,000 people at the Atlanta Pop Festival on July 4, 1970. Jimi Hendrixs last concert was at the Isle of Fehmarn in Germany. Jimi died on September 18, 1970 and just the day before Jimi wrote his last song en titled The Story of Life. (Time Line) There were many great musicians in the 20th century, and some people believe that they have had a greater influence than Jimi Hendrix on rock today. There were the Beatles, Elvis Presley, the Rolling Stones and many other amazing musicians. Each of these artists also produced anywhere from 10-30 albums in their careers and, in his life time Jimi Hendrix officially released only three studio albums (Fricke) With so little music produced for the public how could he have influenced rock in any way at all. There are also other people who think Jimi Hendrix was a bad influence. Jimi Hendrix ran into many problems with the law involving his use of drugs and his anger problems. Some people feel that if someone influential is using drugs or committing violent acts this is influencing fans and followers in a wrong and potentially harmful way. There are also people who probably just didnt like his music. The furor Hendrix created upon his arrival on the London pop scene was unprecedented. (Fricke) His new style of using lots of electronic sound effects was very different and new, and to some people probably it just sounded like a bunch of noise. If anything, some felt his influence changed rock for the worse. It is definitely true that there were many great musicians that played a part in influencing rock music and making it what it is today. Those musicians also wrote more albums and had more popular songs than Jimi Hendrix. But having many albums and popular songs isnt what really influenced the development of rock music or the people who played and wrote rock music. What really influences something is a new and unique style, and that is exactly what Jimi Hendrix provided. He, did not conform to British fantasies of sharpdressing soul belters grizzled old bluesmen, who played rock roll guitar (Fricke). The way he took control during a concert using his pure talent with a guitar and the new style he had in his heart, changed the way concerts were to be performed forever. Jimi Hendrix did have a few flaws in his personality, but that doesnt change his influence in the  slightest. His influence came directly from his music and this part of him was flawless. simply pulling sounds out of the air and taming them into one seamless whole, accomplishing it with unassailable daring. (Mitchell) Jimi Hendrix was one of the most influential and talented musicians of the 20th century, and through his work he has made rock music what it is today. The combination of that creative drive with his stunning technique, sonic imagination and ingenious, painterly exploitation of effects like wah-wah, feedback, distortion and sheer earthquaking volume transformed rock roll and its primary instrument, the electric guitar forever. Hendrix left an indelible, fiercely individual mark on popular music, accelerating rocks already dynamic rate of change in the late Sixties with his revolutionary synthesis of guitar violence, improvisational nerve, spacey melodic reveries and a confessional intensity born of the blues. (Fricke) Although Jimi Hendrix didnt affect any other fields other than rock music directly, his influence on rock music continues to effect the world today. Many people have various aspects to their personality and Jimi Hendrix was definitely one of them. On his one side he had serious drug and anger problems. This side of him, obviously the bad one, was not the side his fans thought of when they saw his poster on their wall. They thought of his flawless other side in which he was an amazing guitarist, song writer and performer. Jimi Hendrix loved to write music and play his guitar more than anything else in the world, For Hendrix it was the substance of life. (Fricke). Work Cited Fricke, David. Jimi Hendrix: The Greatest Guitarist of All Time. Rolling Stone. February 6, 1992 Hendrix, Jimi. The Columbia Encyclopedia, 6th ed. New York: Columbia University press, 2003. Jimi Hendrix Biography. Well Always Remember Jimi Hendrix. (1 December, 2003) Mitchell, Elvis. Jimi Hendrix Again, Going Out With a Bang. New York Times. October 6 2001, :A20 Time Line. Jimi Hendrix Online Archive. (3 December, 2003)

The Leadership Member Exchange Theory

The Leadership Member Exchange Theory There are different leadership theories that have been proposed. Some of these are the leadership member exchange theory, transformational leadership theory, path-goal theory and situational approach theory. In this paper the above four theories will be studied in seeking to help the students have a deeper insight into the leadership styles and where they are best applied. Leadership-member exchange theory Also known as LMX or vertical dyad linkage theory it seeks to describe how leaders in groups are able to maintain their position by having tacit exchange agreements with their subordinates. Through the special relationship with the leader the in-group members have access to high levels of responsibility, are influential in decision making and are also able to access resources. However, the members of in-group pay for this privilege by working hard, being committed to task objectives and also share more administrative duties. In addition, these members are also expected to show loyalty and commitment to their leader. On the other hand, the members of out-group have little responsibility, have little influence in decision-making and find it hard to access the resources. The LMX process according to House (1971) has three stages and starts when one joins the group. The first one is the role taking where the member joins the teams and the leader examines his or her capabilities. It is then that the leader decides whether to give this member an opportunity or not. Knox and Inkster (1968) argue that during this stage it becomes important for the leader and the member to lay down a foundation on rules of engagement. The tacit agreement takes pace in the second phase where the informal arrangement takes place between the leader and the member. The role is created for this member, which also comes with benefits. In return this member is supposed to pay by being dedicated and being loyal. Linville, Fischer and Salovey (1989) observe that at this stage trust building is pivotal. As such if the leader feels betrayed he or she is likely to demote the member to the out-group. This stage also involves other factors such as relationships and the similarity with the leader. A member who has similarity is likely to have positive relationships according to this theory. Similarly, in the case where the leader and the member are of same gender this relationship is also likely to be positive as this informal arrangement is often built on respect. More over, this relationship is likely to be affected by culture and race. According to Lippman (1982) the third process in LMX theory is routinization. It is in this phase that a continuous social exchange between the two parties is established. This relationship is built on trust and there is a tendency to find a member of senior teams having similarity with their leader. Maas, Ceccarelli and Rudin (1996) add that the members are reasonable, sensitive, empathetic and are able to follow the idea of their leader. On the contrary the members of the out-group have opposite characteristics. In particular, they are likely to be aggressive, sarcastic and egocentric. Lippman (1982) describes the in-group members as having more confidence, more involved, communicative and being more dependable. In addition, these members go beyond their formal job description and as such the leader reciprocates by expanding their role. The members of the outer group are less compatible with the leader and just report to work, carry out the responsibilities given and go back home. Ainslie (1974) is of the opinion that under this theory the member of the in-group is more productive owing to this social exchange with their leader. Indeed, under LMX there is likely to be less workers turnover, more positive performance, more positive performance evaluations, more promotions, greater participation and support for the leaders vision and positive job attitude (Ainslie, 1975). This theory has strength as those who contribute more are able to enjoy more benefits than new members of the out-group. It identifies the dyadic relationship and underlines the importance of effective leader member exchanges. However, the leaders need to be careful on whom they allow in the in-group and should only bed one on the work performance only. This should not be based on race, ethnicity, sex or religion. The critics of this find it unfair as the members are treated unequally. Transformational leadership According to this theory transformational leadership is a process that changes people. It entails dealing with the emotions, values, standards, ethics and long-term goals. The followers motives and needs are satisfied by having a visionary leadership. The two parties are bound together in a transformations process. According to Bass (1990) the leaders transform the followers through: Making them aware of the importance and the value of the task. Making the followers understand the importance of focusing on the organizational goals rather than individual interest Activating their high-order needs In his argument Bass (1990) finds that charisma is necessary as it helps to invoke positive and strong emotions. In addition, it also causes the followers to identify with the leaders. Charisma is defined as a personality characteristic and gives the holder superhuman powers. It is only possessed by a few and is often regarded to have divine origin. The writer further argues that authentic transformational leadership is based on idealized influence, intellectual stimulation, inspirational stimulation and individualized consideration (Ainsworth, 1963). The idealized influence describes the leaders who have strong role models characteristics. The followers are happy to identify and emulate these leaders. Through inspirational motivation the leaders communicate their high expectations to their followers. They followers become inspired and become a part of the organizations goal and vision. On the other hand, through the concept of intellectual stimulation the followers are made to be mo re creative and innovative (Graen Cashman, 1975). This is achieved by the leader giving them the right platform where they challenge their own beliefs and values. The followers are also able to question the values of their leader. By individual consideration the leaders provide an enabling climate in which they listen and address the individual concerns raised by their followers (Granovetter, 1973). This also based on the three moral aspects which include The moral character of the leader The ethical values in the leaders vision. This may either be accepted or rejected by the followers. The level of the morality of social ethical processes that the followers and the leader use. However, Burn (1978) looks at transformational leadership as a prowess in which the leaders and followers are engaged in the mutual process of uplifting, motivating others and lifting up the morality. This theory assumes that a leader who has a high moral position is likely to attract a following. It could also be argued that the leaders appeal to the higher ideals and values which the followers are highly attached to. The followers have a shared background on social values and this encourages them to collaborate rather than each following his or her individual interests. It could be argued that leaders who promote this leadership invoke motivation and instill sense of identity and meaning to the workers. According to a research by Bennis and Nanus the leaders had a clear vision of the future of their establishments (Ainsorth, 1978). In addition, they were social architects and motivated the workers by building trust. This is possible through making a clear position and standing by it. As Bailey (1985) puts it the leaders use creative deployment of self through positive self regard. According to North House (2007) the theory has been well researched since 1970s and shares similar idea with the expectations of the society. Moreover, this theory treats leadership as a process which takes place between the leaders and the followers. A big emphasis is also is put on the followers needs vales and morals. The cons of this theory are that the leader seems to work on his or her own and does not allow input from the followers. It is also elitist and undemocratic and is not likely to work where the decision making is supposed to be a shared responsibility. The four constructs; inspirational motivation, individualized consideration, idealized influence and intellectual stimulation are hard to measure. These constructs are also similar to each other and is hard to make out their difference. A questionnaire ideal for this theory Not at all once in while sometimes Fairly Often Frequently 0 1 2 3 4 Idealized influence (attributes) I go beyond self interest for the good of the group ___ Idealized influence (behaviors) I consider the moral and ethical consequences of decisions ____ Inspirational motivation I talk optimistically about the future ____ Intellectual stimulation I re-examine critical assumptions to question whether they are appropriate ____ Individualized consideration I help others to develop their strengths ____ Situational leadership The leader need not rely on transactional and transformational methods only and the best cause of action that leader has to take depends on situational factors. Some of the factors likely to affect the situational decisions include motivation and the capability of followers. Yukl (1989) identifies six variables. The subordinate effort is concerned with the motivation and the effort put. The subordinate ability and clarity is concerned with followers understanding their role and how to do it. The organization of work is important and looks at how the work is structured and also the utilization of resources. The other variable is the cooperation and the cohesiveness of the group. The availability of resources and support is also important. Finally, Yukl also cites external condition as the sixth variable and defines the need to collaborate with other groups. Tannerbaum and Schmidt (1958) found out that the forces in the situation, in the leader and the followers as the forces leading to the leaders action. Similar sentiments were shared by Maier (1963) who observed that leaders need to look at the possibility of the followers agreeing with certain a decision and also the importance of carrying out that task. As such the leader is encouraged to take a certain action to avoid the implication of failing to do so. According to this style the leader is meant to come up with the style of leadership depending on the willingness and the commitment of the follower in performing a particular task. Directing This becomes necessary where there is low competence and commitment from the follower. The leader is not highly concerned with the relationship between him or her and the follower but makes sure the tasks are carried out. This also becomes necessary as the incompetence is corrected by the role the leader plays. Take for instance a situation where instead of the leader taking a directing role, he or she seeks to find out the reason why the follower is not motivated and why he or she is not capable of carrying out a particular task. This could leave some work undone as the leader will refrain from assigning duties which he feels the follower cannot perform well. The followers also end up having low confidence which affects their output. Coaching This applies when the follower has some competence or is over confident on his or her capabilities. Telling such followers what to do may de-motivate them and resistance is likely to result. This makes the leader to look for an alternative on how to work, clarify and explain decisions. This calls for the leader to spend time listening and advising where he or she feels necessary. The follower is able to refine his or her skills through this coaching. Supporting This is necessary when the follower can do the job but is not putting in enough commitment. This case differs from the above cases as the leader is not concerned with showing the follower what to do. It also becomes important for the leader to engage with the follower to identify the reasons why he or she is refusing to cooperate. Motivation becomes the key to improving the followers performance. The leaders should take time listening and praising the follower whenever he or she makes an achievement. Delegating This according to Hersey and Blanchard (1999) is applicable when the follower is highly competent, is highly committed, is motivated and is able and willing to carry out the various tasks assigned. The follower should be left alone to go on with the delegated duties although a distant eye from the leader is necessary. This is necessary in order to monitor how the follower is progressing. Although the followers do not need support and frequent praise it is recommended for the leader to occasionally recognize their efforts. Normative model According to Vroom and Yetton (1973), decision on acceptance increases commitment and participation increase decision acceptance. The decision quality helps in selecting the best alternative and is applicable when there are several alternatives. This becomes necessary when there are serious consequences for not doing so. The decision acceptance on the other hand is concerned with the acceptance of the decisions the leader makes. Leaders should focus more on decision acceptance than decision quality. Vroom and Yetton (1973) came up with five different decision procedures. The first one is when the leader knows information and then makes the decision alone. The second one is when he or she obtains the information from the followers and then makes the decision alone. These two are autocratic and the followers are sidelined in the decision making. The leader may also opt to share the problem with the followers individually. He or she then listens for their input and makes the decision al one. Alternatively the leader shares the problem with the followers but this time as a group. He then notes down their ideas but makes the decision alone. These two procedures are consultative and the participation of the followers is valued. Finally the leader may shares the problem with the group and the decision is arrived at through consensus. However there are situational factors that are likely to affect these five alternatives. The first two methods are not recommended when the followers possess useful information. In addition, this it is not also recommended when the decision quality is pivotal. When the leader sees decision quality as vital but the members do not then group based decision making should be avoided. This is necessary in avoid the implication of the bad decision making where a consensus solution is arrived at. On the contrary, if the leader feels he or she lacks the right skills and information to handle an unstructured problem a collective a decision arrived through consensus becomes appropriate. Similarly, when the decision acceptance is important and the followers are likely to resist an autocratic decision a leader then the first two methods where the leader sources information from them and then makes the decision are inappropriate. When decision masking is highly valued and the members are unlikely to acceptance each others idea then it is in-appropriate to use the autocratic methods or share the problem with them individually. This is because the differences are unable to be resolved if these methods are used. When the decision quality is not essential but decision acceptance is paramount then a group based decision becomes a must to avoid disgruntled followers. The same case applies when the decision quality is of essence and the followers consent with this. Path-Goal Theory The theory was inspired by Mark G. Evans from the expectancy theory. The perception of the degree to which a particular will result to a certain outcome is important (Dawes, 1996). The leaders behavior should be source of inspiration to the subordinates and should also be able to motivate them. The theory is based on the idea that the leaders should offer encouragement and support to their followers. This is ensured by rewarding the followers. The leader should also clarify the path to the subordinates so they can make a choice on their own. The leader should also remove the hurdles which stand on the followers paths. It is also worthy to point out that the leaders may opt to take a limited or full approach in supporting the members. For instance, the leader may give directions or offer hints. House and Mitchell (1974) argue that under this theory four leadership styles can be found. Directive leadership The leader guides the followers appropriately and directs them what to do. This may also entail offering them time-lines on the duties to be carried out and when. This is also recommended where the task given to the members is unstructured. As such the followers are likely to find it hard understanding the role required Participative leadership The leaders also consult with their followers before arriving at a decision. This becomes even more important when the insight from the members is likely to be invaluable. Supportive leadership In increasing the followers work performance it is necessary to show concern for their welfare. The leader should also create a friendly working environment and this is especially recommended where the work is stressful. Achievement-oriented leadership The leader sets challenging goals in work and for self-improvement. In such an instance, the leader sets high standards which the followers are encouraged to attain. The leader also places a lot of faith in their ability to perform the tasks assigned. When the role is complex this method becomes appropriate. The leaders are meant to show the way which the members are expected to follow. The leadership should have foresight and should be able to see the way of achieving goals in future. The followers depend on the leader for the guidance. It also worth mentioning that this theory assumes that the leaders change their leadership styles according to contextual factors. The theory proposes two contingency variables; environment and follower characteristics (Evans, 1970). These variables affect the behavior outcome relationship. The environmental factors determine the type of leader behavior which is appropriate. This is necessary in order to maximize the follower performance. On the other hand, the follower characteristics are concerned with the locus of control, perceived ability and experience (Deci, 1971). These four styles are receptive to the needs of the followers and adapt towards the prevailing situation making the leader to be more effective.

Advertising Strategy Impact On Consumer Buying Behaviour Marketing Essay

Advertising Strategy Impact On Consumer Buying Behaviour Marketing Essay Introduction: Understanding the advertising strategies is an important which determines the consumer motivation towards the purchase decision making. Depending on the nature of the product consumer will follow a certain distinctive stages which will form the purchase decision making process. Consumer purchase decision making process starts with problem recognition like identification of a problem or unfulfilled need of the consumer than the search for information. They can search information by different ways like impulse purchase decisions, internet, advertising etc. Then they will evaluate the alternatives and finally make the purchase decision. The final part of purchase decision making process include post-purchase evaluation. This is a very important sector for all the marketing managers to satisfy their after making the purchasing decision by checking whether the products meet the level of expectations or not. Advertising is a paid, mediated form of communication from an identifiable source which is designed to persuade the receiver to take some action at now or in the future. (Richards and Curran, 2002) 1.2 Problem Definition: Advertising strategy has an impact on consumer buying behaviour. Advertising strategy is a campaign developed to communicate ideas about the product and services to potential customers for convincing them to buy those products or services (www.enotes.com). the advertising strategy should be built in a rational and intelligent manner will reflect business consideration like overall budget and brand recognition and objectives such as public image enhancement, market share growth. 1.3 Rationale: Retail industries in UK are facing problems of understanding the consumer behaviour. Consumer interest to a particular product can be increased by their advertising strategy. Advertising strategy should be made in such a way which will understand the consumers mind and satisfying the needs and wants of the consumers. I want to use this study to protect customer rights and to increase awareness in customers mind. Also I want to raise the issue of establish societal marketing concept by the company, where a company should play an ethical role in the society for the benefit of society and normal consumer. 1.4 Organizational Background: This research is based upon Tescos advertising strategies to motivate their customers. Tesco is one of largest retail industry in UK. In the year 2000 Tesco has launched in UK. At the year 2001, Tesco launches `Customer Champions in many stores an in many implement a new labour scheduler to further improve service for customers and Tesco becomes the leading organic retailer in the UK and reaches to  £1 billion price cuts. In 2002, Tesco enters to Malaysia and offers Free-From products designed for customers with special dietary needs. In 2003, Tesco entered in Turkey and Japan in order to expand their business. Day by day Tesco is increasing their business in different areas and in 2004 Tesco enters in China and launched own-brand Fair trade range and Broadband. At this time tesco.com become the first major British supermarket to enter music and download music. In the year 2005, Tesco Home plus launches and Tesco announces annual profit of  £2 billion and Tesco exists the Taiwanese market in an asset swap deal with Carrefour involving stores and operations in the Czech Republic. In 2006, Tesco Direct launched and in 2007 Tesco opens Fresh and Easy in the US. In 2008, Tesco announces plans to establish cash and carry business in India and acquires 36 hypermarkets in South Korea from Homever. Tesco also launched discount brand and personal finance acquisition in this year. In the year 2009, another advertising strategy club card re-launched in the UK with  £150 million investment offering customers the opportunity to double up their vouchers. (www.tescoplc.com, 2010) 1.5 Research Background: At present, retail companies are giving aggressive advertisement to attract customers which impacts great changes on customers buying pattern. Sometimes their advertising strategy leads to un-ethical issues in the society. So, general customers and people in the society have been affected by enormous advertisement. This study will explore that issue. 1.6 Research Questions: What is the concept of advertising and consumer buying behaviour in the context of retail industries? What is the impact of advertising strategy on consumer buying behaviour in the UK retail industry? What is the impact of Tescos advertising strategy on the buying behaviour of its customers? 1.7 Research Objectives: Critically review literature on advertising and consumer buying behaviour in the context of marketing and business strategy in the UK retail industry. Collect and analyze the data obtained through questionnaires targeting Tescos customer and interview the managers. Literature Review 2.1 Indicative Literature Review: The aim of this chapter is to demonstrate knowledge of relevant literature. Identifies key debates, concept and theories. Following two key points are the backbone literature of the proposed research topic: Advertising Customers buying behaviour The aim of this literature review in this report is to identify the literature gap. 2.2 Advertising: One of the major goals of advertising must to generate awareness of the business and its products. Once the business is established and its products are positioned in the market then the advertising will increase and develop consumer loyalty to the product. Definition of advertising: Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. (Kotler Armstrong, 2004) A dictionary definition of advertise would be to make known: to inform. All advertisements can be seen to offer information, and can be regarded as communications about products, services and organizations. Viewed in this way, advertisings purpose can be seen as communication, but since all advertisements contain persuasive elements directed at the ultimate purpose of a sale, advertising must also provide motives. Consumers must be moved towards purchase; ideas must be communicated.(Geoff Lancaster et. all,2002) 2.3 Advertising Decisions: Marketing management must make four important decisions when developing an advertising program, and evaluating advertising campaigns. Campaign evaluation Communication Impact Sales impact Message decisions Message strategy Message execution Budget decision Affordable approach Percent of sales Competitive parity Objective and task Objectives Setting Communication objectives Sales objectives Media decision Research, frequency, impact Major media types Specific media vehicles Media timing 2.4 Advertising objectives: There are some major objectives of making the advertising such as building brand image, providing information, persuasion, supporting marketing efforts and encouraging action. An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time. Advertising objectives can be classified by primary purpose whether the aim is to inform, persuade, or remind. (Kotler Armstrong, 2004) Following table will illustrate core advertising objective. Informative Advertising Telling the market about a new product Describing available services Suggesting new uses for product Correcting false impression Informing the market of a price change Reducing consumers fears Explain how the product works Building a company image Persuasive Advertising Building brand preference Persuading customer to purchase now Encouraging switching to your brand Persuading customer to receive a sales call Changing customers perception of product attribution Reminder Advertising Reminding brand preference Keeping customer to purchase now Encouraging switching to your brand during off seasons Changing customers perception of product attributes Maintaining its top-of-mind awareness 2.5 Setting the Advertising Budget: After determining its advertising objectives, the company next sets its advertising budget for each product. Four commonly used methods such as; affordable approach, percent of sales, competitive parity, and objective and task. A brands advertising budget often depends on its stage in the product life cycle. For example, new products typically need large advertising budget to build awareness and to persuade consumers to try the products. In contrast, mature brands usually require lower budgets as a ratio to sale. Market share also impacts the amount advertising needed: Because building the market or taking share from competitors requires larger advertising spending than does simply maintaining current share, low-share brands usually need more advertising spending as a percentage of sales. 2.6 Developing Advertising strategy: Advertising strategy consists of two major elements: creating advertising messages and selecting, advertising media. In the past, companies often viewed media planning as secondary to the message-creation process. The creative department first created good advertisements, then the media department selected the best media for carrying these advertisements to desired target audiences. 2.7 Creating the Advertising Message: Good advertising messages are especially important in todays costly and cluttered advertising environment. Just to gain and hold attention, todays advertising messages must be better planned, more imaginative, more entertaining, and more rewarding to consumers. Message strategy is the first step in creating effective advertising messages is to decide what general message will be communicated to consumers- to plan a message strategy. Message execution is the second step. The advertiser has to turn the big idea into an actual ad execution that will capture the target markets attention and interest. The creative people must find the best style, tone, words, and format for executing the message. Any message can be presented in different execution styles, such as; Slice of life Lifestyle Fantasy Mood or image Musical Personality symbol Technical expertise Scientific evidence Testimonial evidence or endorsement. 2.8 Selecting Advertising Media The major steps in media selection are: Deciding on reach, frequency, and impact. Choosing among major media types. Selecting specific media vehicles. Deciding on media timing. 2.9 Advertising Evaluation: The advertising program should evaluate both the communication effects and the sales effects of advertising regularly. Measuring the communication effects of an ad- copy testing tells whether the ad is communicating well. Copy testing can be done before of after an ad is printed or broadcast. Before the ad is placed, the advertiser can show it to consumers, ask how they like it, and measure recall or attitude changes resulting from it. After the ad is run, the advertiser can measure how the ad affected consumer recall or product awareness, knowledge, and preference. 2.10 Importance of Advertising strategy: The importance of advertising strategy are the following:- Advertising strategy will help to reach the large number of customers across different geographic markets. Effective advertising will allow larger audience to be reached with specific messages. Depending on media used, cost of reaching individuals can be lowered compared to other forms of communications. Advertising can be used to provide information for consumers at different purchasing stages. Advertising strategy will be effective in awareness creation at early stages of new product launched. Advertising strategy include a wide range of media to carry the advertising. 2.11 Advertising strategy framework: For the development of the advertising strategy it is useful to use different theoretical framework which are the following:- Hierarchy of effects model: This model will help to clarify the objectives of the advertising strategies as well as the objectives of a particular advertisement. It is also helpful to identifying the communication strategy. This model describes that a business buyer or a consumer moves through a series of six steps to make a purchase like awareness, knowledge, liking, preference, conviction and the actual purchase. (Kenneth E. Clow and D. Baack, 2002) Means-End Theory: The second theoritical model of Advertising strategy called the means-end chain. An advertisement contains a message or a means to lead the consumers a desired end state. Here the end-states include the personal values. The purpose of the means-end chain is to cause a chain reaction in which viewing the ad leads to the consumer to belief the product will achieve one of these personal values. The means-end theory model suggests that there are five elements in creating advertising like the product attributes, consumer benefits, leverage points, personal values and the execution framework. This model is designed to move the consumers through these five elements. Thus, the attributes of the product should be linked to the specific benefits consumer can derive and these benefits can lead to the attainment of a personal value. (Kenneth E. Clow and D. Baack, 2002) Leverage Point model: The hierarchy of effects model and the means-end chain approach are associated with leverage point methods. A leverage point is such a feature in the ads that lead the viewers to transform the advertising message into a personal value. To construct a quality leverage point, the marketers tries to build a pathway connecting a product benefit with the potential buyers value system. (Kenneth E. Clow and D. Baack, 2002) Verbal and visual images: The final type of advertising model is called verbal and visual images model. Here the degree of emphasis is given on the visual elements. Visual images often lead to more favourable attitudes toward both the advertisement and the brand. Visuals also trend to be more easily remembered than a verbal copy. Visual elements will be stored in the memory as both pictures and the verbal copy. This dual processing makes it easier for people to recall the message and also visual images are usually stored in the left and right hand sides of the brain while verbal messages are tend to be stored in the left side of the brain only. (Kenneth E. Clow and D. Baack, 2002) 2.12 Customers Buying Behaviour Consumers around the world vary tremendously in age, income, education level, and tastes. They also buy an incredible variety of goods and services. How these diverse consumers connect with each other and with other elements of the world around them impacts their choices among various products, services, and companies. (Kotler Armstrong, 2004) 2.13 Models of Consumer Behaviour Buyers black box Buyer Buyer Character- Decision Istitcs Process Marketing and other stimuli Marketing Other Product Economic Price Technological Place Political Promotion Cultural Buyer responses Product choice Brand choice Dealer choice Purchase timing Purchase amountConsumers make many buying decision every day. Most large companies research consumer buying decisions in great detail to answer questions about what consumers buy, why they buy, how and how much they buy, when they buy. Marketers can study actual consumer purchases to find out what they buy, where, and how much. But learning about the whys of consumer buying behaviour is not so easy the answers are often locked deep within the consumers head. This figure shows that marketing and other stimuli enter the consumers black box and produce certain responses. Marketers must figure out what is in the buyers black box. Marketing stimuli consist of the four Ps: product, price, place, and promotion. Other stimuli include major forces and events in the buyers environment: economic, technological, political, and cultural. All these inputs enter the buyers black box, where they are turned into a set of observable buyer responses: product choice, brand choice, dealer choice, purchase timing, and purchase amount. The marketers want to understand how the stimuli are changed into responses inside the consumers black box, which has two parts. First, the buyers characteristics influence how he or she perceives and reacts to the stimuli. Second, the buyers decision process itself affects the buyers behaviour. (Kotler Armstrong, 2004) 2.14 Characteristics Affecting Consumer Behaviour Consumer purchased are influenced strongly by cultural, social, personal, and psychological characteristics. For the most part, marketers cannot control such factors, but they must take them into account. 2.15 Cultural Factors: Cultural factors exert a broad and deep influence on consumer behaviour. The marketer needs to understand the role played by the buyers culture, subculture, and social class. Cultural Culture Subculture Social class Social Reference groups Family Roles and status Personal Age and life-cycle stage Occupation Economic situation Lifestyle Personality and self-concept Buyer Psychological Motivation Perception Learning Beliefs and attitudes 2.16 Types of Buying-Decision Behaviour: There are four types of buying-decision behaviour such as: Complex buying behaviour: Consumers undertake complex buying behaviour when they are highly involved in a purchase and perceive significant differences among brands. Consumers may be highly involved when the product is expensive, risky, purchased infrequently, and highly self-expressive. Typically, the consumer has much to learn about the product category. Dissonance-reducing buying behaviour: It occurs when consumers are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands. Habitual buying behaviour: It occurs under conditions of low consumer involvement and little significant brand difference. Variety-seeking buying behaviour: consumers undertake it in situations characterized by low consumer involvement but significant perceived brand differences. In such cases, consumers often do a lot of brand switching. 2.17 The Buyer Decision Process: Post purchase behaviour Evaluation of alternatives Information search Need recognition Purchase decision Need recognition: The first stage of the buyer decision process, in which the consumer recognizes a problem or need. Information search: The stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search. Alternative evaluation: The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set. Purchase decision: The buyers decision about which brand to purchase. Post purchase behaviour: The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction. Research Methodology 3.1 Introduction A good research methodology gives a clear picture of what the aims of the field work should be. In the main, the purpose of the primary research would be to identify some of the key issues behind the Tescos advertising strategy. This methodology chapter will begin by briefly looking at the theoretical underpinning underlying the carrying out of a marketing research activity. Thus it can be argued that regardless of the nature of the study, understanding the nature and limitations of various data collection methods can enable a researcher to better understand the data collected and the limits of their interpretation. Following this review, the chapter then goes to consider the choice of method and its implementation, with the entire attendant stages involved. 3.2 What is Marketing Research? Johnson (1994 cited in White 2003, p21) defined research as a focused and systematic enquiry that goes beyond generally available knowledge to acquire specialized and detailed information, providing a basis for analysis and elucidatory comment on the topic of enquiry. Any type of researches, including both marketing and academic research, contains the basic characteristics of a research activity. Cooper and Schindler (2006, p4) have argued that marketing research is a systematic inquiry that provides information to guide marketing decisions. 3.3 The Marketing Research Process The research process is the route map of any type of research. Aaker et al (2004, pp 43-5) have argued that by and large any research activity or study contains seven steps, as follows: (1) Agree on the research process. (2) Establish research objectives. (3) Estimate the value of information. (4) Design the research. (5) Collect the data. (6) Prepare and analyse the data. (7) Report the research results and provide strategic recommendations. 3.4 Qualitative Research Following the broad overview above, this section now briefly looks at the type of approaches in use in practice. 3.5 Definition Once a research approach is decided, researchers will need to focus on the research methods. Hague (1992, p120) argued that marketing research surveys include two main groups. They are quantitative and qualitative researches. Denzin and Lincoln (2003, p4) considered that generic definition of qualitative research could be described as qualitative research is a situated activity that locates the observer in the world. 3.6 Qualitative versus Quantitative In terms of the differences between them, Wright and Crimp (2000, pp 374-5) argued that qualitative research uses description by words and pictures, while quantitative research uses measurement and number. Hague and Jackson (1999, pp 17-8) believed that quantitative research emphasizes accuracy whereas qualitative research emphasises understanding rather than simple measurement. Hague (1992, p123) also argued that qualitative researches enables researchers to better understand the subject matter more so than quantitative researches. In conclusion, quantitative research emphasises the accuracy and quantity dimensions. On the other hand, qualitative research emphasises the nature or quality aspects. Given the nature of the problem posed in this study, it can be argued at this stage this study will utilise a more qualitative approach since we do not understand the reasons for the present push of Abu Dhabi as a destination and where exactly it will be positioned in the minds of consumers. 3.7 Quantitative Research Quantitative research methodology deals with areas that can be expressed in numbers. It will tell researchers, for example, what proportion of the population uses luxury cars and what their ages and occupations are; what it will not do very easily is tell researchers why those people prefer such cars. Main quantitative research techniques are; Survey Questionnaire 3.8 The Survey Survey involves the systematic application of representative sampling, questionnaire design, information collection and statistical analysis techniques to obtain data which describes aspects of a market in as much detail required by the research user. The size of the sample is determined by a combination of factors including the structure of the market being examined, the level of detail required and the accuracy levels required at the overall cost of the research. (Malhotra, 2004) Figure : A classification of survey methods Traditional TelephoneTelephone InterviewingPP Personal Interviewing CC Computer Assisted Telephone InterviewingSS Survey MethodsEE Electronic Interviewing II In-HouseMM Mall Interviewing MM Mall InterceptCC Computer Assisted personal InterviewingMM MailMM Mail panelEE E-mailII Internet Source:Naresh.K.Malhotra, 2004 3.9 The Questionnaire They are a valuable method of collecting a wide range of information from a large number of respondents. Good questionnaire construction is critical to the success of a survey. Inappropriate questions, incorrect ordering of questions, incorrect scaling, or bad questionnaire format can make the survey valueless. A useful method for checking a questionnaire for problems is to pretest it. This usually involves giving it to a small sample of respondents, then interviewing the respondents to get their impressions and to confirm that the questions accurately captured their opinions.(Burns Bush, 2003). McDaniel and Gates (2005, p318) believed that questionnaire is a set of questions designed to generate the data necessary to accomplish the objectives of the research project. To design a questionnaire, they proposed a ten-step process as follows: -Step one: Determine survey objectives, resources and constraints. -Step two: Determine the data collection method. -Step three: Determine the question response format. His basic format of a questionnaire is closed-ended questions. Its main consideration is that it is more convenient for the respondents to utilise. But as will be seen in Appendix, this study used mainly open-ended questions because of the problem being investigated. One of the advantages is that it can provide more clues to analyse and judge the response (Aaker et al 2004, p320). -Step four: Decide on the question wording. -Step five: Establish the flow and layout. -Step six: Evaluate the questionnaire. After the first draft, the questionnaire should be reviewed. The main purpose is to make sure that all questions will collect necessary data which will accomplish the aim of the study. -Step seven: Obtain approval of all relevant parties. -Step eight: Pre-test and revise. -Step nine: Prepare the final copy. -Step ten: Implement the survey. 3.10 Sampling Methods Aaker et al (2004, p373) believed that sampling is useful when the population size is big, the cost is limited and time is limited. They argued that time spent on each would be limited if sampling is used properly and hence the quality of responses would be improved. In terms of the suitable situations of using each, Aaker et al (2004, pp 387-90) argued that non-probability sampling can be used in exploratory research as follows: judgemental, snowball, convenience, and quota sampling. For this study, judgemental sampling method is chosen mainly for the time limitation. 3.11 E-mail Survey More recently, the use of the e-mail survey method has become more common place. Aaker et al (2004, pp 167-8) are of the view that there are some advantages in collecting primary data by this means. The include: (1) It is speeder than the traditional postal mail. This study has benefited from this means since it was possible to contact potential respondents and solicit their co-operation well before the interview took place (2) It usually saves many of the costs involved in regular mail surveys (3) There are no intermediaries. E-mail is usually read only by the recipient, so that the respondent chosen by the researcher is usually the one to answer the questions (4) It is more convenient for the recipient. 3.12 Choice of Data Collection Method and Its Implementation In this study quantitative research method will be used to get accurate output from the study. The key element is face to face interview. The process is given below: 3.13 Face-to-face interviews (with an interview schedule/open-ended questions: See Appendix 1) with selected Tescos customers and line managers charged with responsibility of trading in the Tesco store. It was felt that given the time it took to respond to a request for interview that a questionnaire survey would have been far less satisfactory. In addition, in that part of the world face-to-face encounters are considered more respectful particularly when attempting to elicit answers from operational managers and customers. Nevertheless, the process was cumbersome and entailed constants with customer service in order to fix dates and diaries. The process took well over three months (from August to October, 2010). The researcher is of the view that the responses elicited do provide a good overall picture of the advertising strategy and its impact, was useful to the study. Hypothesis Statement: Problem question: How do advertising strategies impact on consumer buying behaviour? H0: Advertising strategies have an impact on consumer buying behaviour. H1: Advertising strategies have no impact on consumer buying behaviour. Limitations of the Research: The limitation of this research is to submit this project within a short period of time and for that reason some of the important issues may have not been discussed on this research. Another limitation can be limited sources of secondary information available in the market and thats why this research can not use a major sources of information in order to make an extensive project. PROPOSED TIME-TABLE: Following table will illustrate the possible deadlines and dates to complete the proposed dissertation properly on time. AREAS WK 1 WK 2 WK 3 WK 4 WK 5 WK 6 WK 7 WK 8 WK 9 WK 10 WK 11 WK 12 Identification Of Issue Literature Review Research design

Overfishing Is Destroying the Oceans of the World Essay -- Environment

  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Since nearly the beginning of human history fishing has been an integral part of the culture and survival of coastal communities. These coastal communities and cities have always been some of the most prosperous and successful because of the added resource of the ocean. In the beginning many areas were so densely populated with fish and shellfish that often a day’s worth of food could be caught by simply wading into the shallows. For example, some of the first English settlers to see the Chesapeake Bay described â€Å"The abundance of oysters is incredible.   There are whole banks of them so that the ships must avoid them. . . . They surpass those in England by far in size, indeed, they are four times as large.   I often cut them in two, before I could put them into my mouth† (Miller). This abundance had every appearance of being as infinite as the ocean that produced it but the reality was far different. Many fish stocks , including the oyster, stayed near these high levels even into the beginning of the industrial era. However the new rapid pace of technological advancement proved too much for many stocks to handle. Close shore stocks took most damage as they were the easiest to exploit. Those same oyster colonies that were once an obstacle for boats were nearly eradicated by â€Å"the 1890s harvests began to decline.   Many oyster beds were destroyed and reefs had been mined away.   By the 1920s, the boom was over†¦Ã¢â‚¬  (Miller). While catastrophes like this inspired many sustainable practices there are still fisheries worldwide that are headed for a similar end. Through ignorance and misinformation from the fishing industry most of the general public does not know that this is occurring. The following will serve to inform about the t... ...devoid of the abundance of life we have come to know. Works Cited Crawford, Phil. â€Å"Pacific Island countries strive to save their tuna fisheries.†Ã‚  Pacific Ecologist  20 (2011): 42+.  Academic OneFile. Web. 30 Oct. 2014. â€Å"Factory ship from hell. (Shipping Briefs).†Ã‚  African Business  Apr. 2002: 34.  General OneFile.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Web. 6 Nov. 2014. Faye, Denis. â€Å"Marine protection Learning to give and take.†Ã‚  Ecos  Jan. 1999: 17.Academic OneFile. Web. 2 Nov. 2014. Longhurst, Alan. â€Å"Doubt and certainty in fishery science: Are we really headed for a global collapse of stocks?†Ã‚  Fisheries Research  86.1 (2007): 1-5. Web. 2 Nov. 2014. Miller, Henry M. â€Å"The Oyster in Chesapeake History† St. Mary’s City. Web. na Muir, Magdalena A.K. â€Å"Illegal, unreported and unregulated fishing in the circumpolar Arctic.†Ã‚  Arctic  63.3 (2010): 373+.  Academic OneFile. Web. 2 Nov. 2014.

Essay --

â€Å"You Learn Something New Every Day† Bud Blake, ‘Tiger’ (1918-2005) This comical strip of art created by â€Å"the genial cartoonist whose ‘Tiger’ comic strip was adored worldwide† (King Features, 2005) raises many important and striking questions. Although we have a general idea of what learning means, do we know its true definition? Do we understand its significance, its inevitable role in our everyday lives from the moment of birth? The old adage says â€Å"You learn something new every day†. So does that mean that learning is a continuous process? Or does it only happen in a classroom or a lecture room? How does learning happen? Is it a voluntary process or involuntary, conscious or unconscious? However, defining learning and explaining the various learning theories alone, does not provide enough accuracy or truthfulness when applying the theory to third-level students. It is vital to keep in mind who the modern Irish third-level student is as the interpretations may vary. The 21st century presents students of all diffe rent shapes and sizes, with various abilities and backgrounds. This essay will examine theories behind the phenomenon of learning in an attempt to draw up a vivid explanation of what it is, how it works and how it can be applied to a modern Irish third-level student. So what is learning? Well, it can be understood as â€Å"a relatively permanent change in behaviour that is brought about by experience† (Feldman, 2010) or â€Å"just a matter of creating associations among ideas as a direct result of experience† (Gleitman, Gross and Reisberg, 2010). Many other educational psychologists define learning as â€Å"the achievement of greater proficiency, mastery and fluency in a person’s capacity to know or do something that they were previo... .... Clearly, not all behaviour observed is repeated. If a satisfactory reward follows a behaviour, it will be repeated. If there is a punishment for carrying out a behaviour, chances are, it will not reoccur. Observational learning is really common third level education. If a student sees his friend study well, attend all lectures and tutorials and get rewarded with good grades and increased motivation, that student will be encouraged to do the same. Undeniably, no two people are the same. We all differ in one way or another, including in how we learn. We are born with different abilities and brought up in different circumstances through which the values of learning are passed on to us. Therefore, some students are more motivated to succeed than others. For example voluntary immigrant students perform better than those who are involuntary immigrants (Feldman, 2011).

James Buchanan :: essays research papers

James Buchanan On April 23, 1791, a great man was born; fifteenth president of the United States, James Buchanan.He was born near Mercersburg, Pennsylvania. His father, James Buchanan, and his mother Elizabeth Speer Buchanan, raised their son a Presbyterian. He grew up in a well to do home, being the eldest of eleven other siblings. His parents cared for them all in their mansion in Pennsylvania. They sent him to Dickinson College. Buchanan graduated in 1809, was admitted to the bar in 1812, and then moved to Lancaster to set up his law practice. His political career was initiated in 1814 with his election to the Pennsylvania House of Representatives; in 1821 he began his first five elective terms in the House of Representatives. President Andrew Jackson appointed James Minister to Russia, upon his return in 1834. Buchanan was in the service of the United States Senate for a decade, and then became a secretary under James K. Polk, and as President Pierce’ s minister to Great Britain. During this Foreign Service, Buchanan’s name was mentioned as the Democratic Party’s for the 1856 Presidential Election. Buchanan had strived for this election in the three previous elections; it had seemed to pass over him. But by 1856, Buchanan was ready to retire from public service and only accepted the nomination out of duty and obligation. Buchanan didn’t actively campaign for the presidency, but instead remained quietly at home in Wheatland. Buchanan’s presidency was characterized by the state’s rights and slavery issues, which tore our country apart. Following the election of Abraham Lincoln, and by the time Buchanan left office, six states had seceded from the union. When seven of the fifteen stated seceded from the union, in 1860-1861, Buchanan did not force them to stay in the union. He felt that violence would only make more states leave. His policy delayed the Civil War until after Abraham Lincoln took office. So, therefore, Buchanan actually was president during the very beginnings of the Civil War . Being a minister to Great Britain, the Whig party regained the presidency in 1849, and Buchanan retired to Wheatland. He ran for the democratic presidential nomination. Franklin Pierce won the nomination and the election though. He appointed Buchanan minister to Great Britain. In London, Buchanan tried for two years to modify the Clayton-Bulwer treaty of 1850. This treaty provided that neither nation should occupy territory in Central America.

Operating System Security Essay

Operating System Security Security is the most important part of an operating system when it comes to keeping the system and its information safe. There are various aspects to the security piece in an operating system; which are protocols, kernel and encryption. The UNIX/LINIX, Apple and Windows Server 2008 all have protocol, kernel and encryption features. These features need to be enabled to the highest level in order to have the most security for each of these operating systems. Even though some of these features are already enabled to some level by default, the security level still can be raised for more protection. Starting with the UNIX/LINUX versus Apple operating systems, the most secured versions of these operating systems will be used to demonstrate which is more secured. There are two aspects of these operating systems, desktop and server, however we will stay with the desktop versions of these operating systems. This will allow a more forward approach, so that it will be more understandable for the end user. The LINUX Red Hat Enterprise edition offers the most security of any of the other editions of UNIX/LINUX desktop versions. The protocols of this operating system offer some level of security but there are no new approved security measures built into the security stack. This allows hackers/attacker to be able to gain access easier than newer security measures. One of the newest measures of security in LINUX is SELinux this includes enhancements to the kernel in the LINUX operating system. It provides a security measures that enables access control security policies. This level of security also includes MAC (mandatory access controls) which is a government style level of security measure. This kernel security measure is the highest level of security that this operating system has to offer. When looking into the Apple operating system, OS X offers the most protection of any version of Apple operating system. One of the main security features in the Apple OS (operating system) is XProtect, this feature is used to add the highest level of security to browsers. However, the older versions of Safari and Mail will no longer be able to run once this security update is applied to the OS. And this makes this OS have less functionality than it would normally in a browser aspect. The OS X version 1.6 code name snow leopard is the Apple OS security that we will be discussing. The highest level of security that this Apple OS has to offer is the hidden malware protection that it provides. This Apple OS has a built in system that detects malicious software and attempts to protect the system from the user to prevent him/her from damaging their system(s). However, since the malware are quarantined and not deleted/removed, it poses another security issue. Unfortunately, Apple has been slow when it comes to security threats and so we will have to see if there will be any additional security measures in the future. The Windows Server 2008 is the most secured Windows operating system available and also has the most security features available than any other OS developed by Microsoft. The Windows Server 2008 has an improved firewall and advanced security features. Incoming and outgoing filters can be customized and configured to the level and flexibility needed by the user. NAP (network access protection is an advanced security feature of Windows Server 2008. This feature helps keep unsecured computers from accessing the network of a business and also a single computer or home based network as well. This OS does allow external access from remote computers by mitigating possible security breaches. The NAP security feature is an enhancement of the NPS (network policy server) feature from Windows Server 2003. And so it is a proven security feature with proven results and is the highest advanced security feature available in Windows Server 2008.

Investement

This case was prepared by Boris Morozov and Rebecca J. Morris both from the University of Nebraska at Omaha. The views presented here are those ofthe case authors and do not necessarily reflect the views ofthe Society for Case Research. The authors' views are based on their own professional judgments. Copyright  © 2009 by the Society for Case Research and the authors. No part of this work may be reproduced or used in any form or by any means without the written permission ofthe Society for Case ResearchOn June 1, 2006, the house lights dimmed at the Wall Street Journal's All Things Digital conference. On the large screens fianking the stage, a film called the â€Å"Winds of Change† started. In the film, a dignified white-haired spokesman standing in front of sentimental images of puppies, babies, balloons and birthday parties began talking about the â€Å"golden days† at Kodak— the days of the â€Å"Kodak moment† in photography. Signaling a shift in the tone of the film, the spokesman looked straight into the camera and said, â€Å"Get's ya misty, doesn't it?Yep, they shoveled on the schmaltz pretty thick—but that kinda crap doesn't work anymore. † Now people wanted everything to be digital, the speaker stressed, becoming more frenzied as he spoke about digital photography and Kodak's role in it. The viewing audience chortled when the speaker intoned. You thought they (Kodak) were just hiding out waiting for this ‘digital thing' to blow over didn't you? Oh, sure. For a while they were like, ‘Ohhh, there's no way digital's going to catch on'.. .But now Kodak's back!With swelling enthusiasm, the spokesman extolled Kodak's research and development in digital photography, ending by pulling at his hair and exclaiming, â€Å"You were a Kodak moment once and by God, you'll be one again†¦ only this time its digital. Whooo-yeah! â€Å"^ The spokesman appeared somewhat startled by his own outburst and sheepis hly walked off stage as the film ended and the lights came up. Wall Street Journal columnist, Kara Swisher then welcomed Kodak CEO, Antonio Perez to the stage to the audience's vigorous applause and cheers. Paul Simon's song, â€Å"Kodachrome† played as Perez took the stage.Swisher began her interview saying, â€Å"That was a really funny movie. I liked that film! † Her first question, however, was not so approving. â€Å"What happened,† she asked as Perez settled into his chair, â€Å"What from your perspective happened at Kodak—because it was one ofthe greatest brands in history? â€Å"^ SCR BUSINESS CASE JOURNAL Perez responded without hesitation, saying: First of all there was this notion that came out of incredible success. The notion was that maybe if Kodak doesn't move into digital—the imaging world will never move into digital. .. They (Kodak) were running a business with gross margins between 60-70% and those things are hard to let go, e specially when you are confronting a business model that is going to give you, if you are lucky, something around 30%. So that means that you have to change the whole company. From the way you design, to the way you manufacture, to the way you distribute, you know.. .the whole thing. It is very tough. So Kodak is very late to the digital space. But Kodak was not late in investing in digital. Kodak was very rich.Kodak hired very good people and those people were actually doing the right things. In the last fifteen years, Kodak developed one ofthe most impressive IP (intellectual property) portfblios-in digital capture, image processing, pixel technology and all sorts of things†¦ color management, you name it—actually a leader in all of those spaces. Now, why didn't they commercialize that? I don't know. ^ 22 Referencing Kodak's transition from traditional photography to digital, S wisher asked, â€Å"So, how did you get the film people out—because it's a film comp any? † Perez described his approach saying.Basically, the model that I used when I visited the factories was looking at the audience and say, â€Å"How many [of you] have a digital camera? At that time it was about 60%, and I would say, well, you are the problem we have. We either move to digital—we either do this transformation effectively—or this company basically will cease to exist. There is nothing else. There is no time to argue about it†¦. This is over. We are already very late but we do have the tools that we need to make this happen. â€Å"* Eight months after the All Things Digital Conference, Kodak held its annual strategy meeting in New York City.Antonio Perez announced that Kodak had successfully completed a four-year, $3. 4 billion transformation and was poised for growth over the next four years (20082011). Investors, however, did not share Perez's view ofthe firm. Kodak's share price fell to a 30-year low following the strategy meeting amid skepticism about Kodak's future strategy. ^ Pointing out that Canon had surpassed Kodak in sales of digital cameras and that Kodak's EasyShare Gallery faced tough competition from services like Shutterfiy and Snapfish, analysts wondered whether Kodak had turned the corner. Other investors argued that the Kodak brand still had appeal for consumers and that the company's transformation would take time. Speculation about a possible breakup of the company or mergers with other technology companies appeared in the financial press. ^ Had Kodak successfully adapted to the challenges ofthe digital space? Were there other strategies that Kodak should pursue? SCR BUSINESS CASE JOURNAL 23 Kodak's Digital Strategy in 2003 Any evaluation of Kodak's transformation needed to begin with a review of Kodak's history in digital photography.Despite employing the engineer who invented the first digital camera (patented in 1978) and holding more than 1,000 digital-imaging patents,^ Kodak did not introdu ce a digital camera to consumers until 2001. Kodak's moves paralleled those at many companies whose comfortable business models were threatened by rapid changes in information technology. When asked whether Kodak had moved into digital photography soon enough, then Kodak CEO Daniel Carp replied, â€Å"I saw my first digital camera inside Kodak in 1982. Today, we're arguably one ofthe top three providers of digital cameras in the U. S.So, we did the right thing. At the same time, we shouldn't have walked away from the historical film businesses before they turned down, because it would have destroyed value. â€Å"^ Under slumping economic and competitive market conditions, Kodak faced tough pressure from its existing competitors as well as from new rivals in the area of digital photography—a $385 billion industry composed of devices (digital cameras and personal data assistants [PDAs]), infrastructure (online networks and delivery systems for images), services and media (sof tware, film and paper) enabling people to access, analyze and print images.Even though Kodak had invested $4 billion'^ into digital research and related technologies since the early 1990's and spent many years perfecting its digital cameras, Kodak's status as an iconic brand was threatened by the technological shift away from its cash-cow business of traditional film and film processing. In July 2003, Kodak reported fiat sales and a 60 percent drop in second-quarter profits. Since January 1, 2000, when Carp took over as chief executive of Kodak, the company's revenues and net income had declined, its shares had dropped by 66%, and Standard & Poor's (S&P) had cut Kodak's credit rating by five grades. ^ Kodak had reduced its workforce by 49% since 1989, cutting 7,300 employees in 2002 alone. ^^ Plans were announced to eliminate up to 6,000 jobs in 2003 to stem future losses, cutting Kodak's traditional photography divisions in Rochester, New York to fewer workers than the firm had emp loyed during the Great Depression. ^^ Kodak's balance sheets for 2000 to 2007 are presented in Table 1. Income statements for the same period are presented in Table 2.When announcing the latest rounds of workforce reductions in July 2003, Carp expressed his perspective on Kodak's challenges saying, â€Å"I think we're at the point where we have to get on with reality. The consumer traditional business is going to begin a slow decline, though it's not going to fall off a cliff. † Kodak found itself saddled with assets and employees that were no longer relevant in the world of digital photography. Traditional photography involved factories where film, paper and other silver-halide chemical-based products were made by thousands of chemical technicians, film process technicians and color printer operators.In digital photography, images captured by electronic sensors could be displayed, printed, stored, manipulated, transmitted, and archived using digital and computer techniques, without chemical processing. Kodak recognized that digital photography would require different types of employees and began hiring top executives away from computer printer companies, such as Lexmark and Hewlett-Packard. These employees brou? it needed expertise in consvuner electronics and software development. ‘†* Kodak also began closing traditional fihn processing facilities and laying off workers. SCR BUSINESS CASE JOURNAL 24Table 1 Kodak's Annual Balance Sheet 2000-2006 (In Millions 2006 ASSETS Cash & Equivalents Net Receivables Inventories Other Current Assets Total Current Assets Gross Plant, Property & Equipment Accumulated Depreciation Net Plant, Property & Equipment Investments at Equity Other Investments Intangibles Deferred Charges Other Assets TOTAL ASSETS LIABILITIES Long Term Debt Due In One Year Notes Payable Accounts Payable Taxes Payable Accrued Expenses Other Current Liabilities Total Current Liabilities Long Term Debt Deferred Taxes Minority Interest Other Liabilities TOTAL LIABELmES EQUITY Preferred Stock Common Stock Capital Surplus Retained Earnings Less: Treasury Stock TOTAL EQUITY TOTAL LIABILTTIES & EQUITY 1,487 2,669 1,202 199 5,557 10,372 7,530 2,842 36 420 2,869 1,599 997 14,320 17 47 1,003 764 1,735 1,405 4,971 2,714 1 21 5,225 2005 1,680 2,760 1,140 201 5,781 11,379 7,601 3,778 40 363 2,941 1,144 874 14,921 706 113 996 467 1,958 1,249 5,489 2,764 33 20 4,648 2004 1,258 2,544 1,158 688 5,648 12,694 8,182 4,512 532 188 1,924 1,203 730 14,737 400 69 868 2003 1,261 2,389 1,075 730 5,455 13,277 8,183 5,094 426 310 1,678 1,147 708 14,818 457 489 834 654 1,696 1,177 5,307 2,302 81 45 3,819 2002 578 2,234 1,062 660 4,534 13,288 7,868 5,420 382 53 981 972 1,027 13,369 387 1,055 720 584 1,739 892 5,377 1,164 52 70 3,929 2001 451 2,337 1,137 758 4,683 12,982 7,323 5,659 360 85 948 482 1,145 13,362 156 1,378 674 544 1,635 967 5,354 1,666 81 84 3,283 2000 51 2,653 1,718 869 5,491 12,963 7,044 5,919 0 0 947 0 1,855 14,212 150 2,05 6 817 572 1,358 1,262 6,215 1,166 61 93 3,249 581 1,989 1,083 4,990 1,852 67 25 3,992 12,932 12,954 10,926 11,554 10,592 10,468 10,784 0 978 881 5,332 5,803 1,388 14,320 0 978 867 5,935 5,813 1,967 14,921 0 978 845 7,832 5,844 3,811 14,737 0 978 842 5,852 3,264 14,818 0 978 849 6,840 5,890 1,111 13,369 0 978 849 6,834 5,161 2,894 13,362 0 978 871 7,387 5,808 3,428 14,212 SCR BUSINESS CASE JOURNAL Table 2 Kodak's Annual Income Statement 2000-2006 (In Millions ^'^ 2006 2005 14,268 8,783 2004 13,517 8,311 2003 13,317 8,102 2002 12,835 7,391 2001 13,234 7,749 25 2000 13,994 7,105Sales Cost of Goods Sold Gross Profit SeUing, General, & Administrative Expense Operating Income Before Deprec. Depreciation, Depletion, & Amortization Operating Profit Interest Expense Non-Operating Income/Expense Special Items Pretax Income Total Income Taxes Minority Interest Income Before Extraordinary Items & Discontinued Operations Preferred Dividends Adjusted Available for Common Extraordinary Items Disco ntinued Operations Adjusted Net Income 13,274 8,278 4,996 3,101 1,895 1,331 564 262 86 -727 -339 254 7 5,485 3,485 2,000 1,406 594 211 49 -1,194 -762 689 4 5,206 3,340 5,215 3,339 5,444 3,260 2,184 818 1,366 173 -66 -164 963 153 17 5,485 3,333 2,152 919 1,233 219 -26 -891 97 32 -11 6,889 3,747 3,142 889 2,253 178 96 -39 2,132 725 0 ,866 1,031 835 168 62 -821 -92 -175 2 1,876 858 1,018 148 -23 -651 196 -66 24 -600 0 -600 0 1 -601 -1,455 0 -1,455 -57 150 -1,362 81 0 81 0 475 556 238 0 238 0 27 265 793 0 793 0 -23 770 76 0 76 0 0 76 1,407 0 1,407 0 0 1,407 SCR BUSINESS CASE JOURNAL 26 The switch by consumers to digital photography was coming much faster than expected and Kodak's traditional film, papers and photofinishing businesses were declining. By the end of 2003, analysts expected that digital cameras would begin to outsell film cameras for the first time in the United States. The digital photography industry was fast-paced and more crowded, offering razor thin profit margins.In S eptember 2003, Kodak aimounced an aggressive four-year plan to transform the company into a digital photography firm, replacing decliniag revenues and profits in the traditional fihn segment with growing digital revenues and profits. Job cuts and plant closures were prominent aspects of the firm's restructuring plans. Kodak armounced digital and film imaging strategy focused on four components: â€Å"(1) Manage the traditional film business for cash and manufacturing share leadership; (2) Lead in distributed output; (3) Grow the digital capture business, and (4) Expand digital imaging services. â€Å"^^ The traditional film business would be â€Å"managed† through organizational consolidation, cost reduction and reductions in both advertising spending and the number of unique products.Kodak hoped to expand its leadership in emerging markets, such as China and Russia, anticipating strong growth in these two markets for traditional fihn products. Distributed output referred t o the market for printed photos. Kodak plarmed to dominate all channels for printed photos—retail (minilabs and kiosks), home (printer docks and photo papers) and online printing of photos (Kodak's Ofoto site). The digital capture component of the plan addressed digital cameras and Kodak's plans to become the industry standard for ease of use and to achieve top three worldwide market share by 2006. Last, Kodak planned to expand services both online (photo album sharing) and in mobile markets (sharing and printing of photos captured with mobile phones).By the end of trading on the day ofthe digital strategy announcement, Kodak's stock fell to an 18-year low. Institutional investors criticized Kodak's announced strategy, expressing annoyance at the company's intention to invest in inkjet printing, a business dominated by Hewlett Packard. ^ ^Investment analyst. Shannon Cross, expressed the concerns of many investors saying, â€Å"There are so many questions with regard to Kodak 's future strategy†¦ the track record we've seen out of management in terms of being able to hit targets and implement a strategy has been pretty spotty. â€Å"^' The Years 2003-2007 Although shareholders and numerous investment analysts openly criticized the strategy, Kodak began implementing the new digital vision for the company.Since 2003, Kodak had pared costs through layoffs and plant closings in the traditional film division, sold off underperforming business units and increased its research and development investment in ink-jet printers. More than one hundred buildings in Kodak Park in Rochester, New York that had formerly housed thousands of employees had been razed, imploded, or sold by 2007. ^ ° From the company's peak in 1988, Kodak had cut 115,000 employees through divestitures, plant closings, and layoffs. Kodak expected to end 2007 with only 30,000 employees. ^^ Although job cuts would eventually represent cost reductions and improvements to the firm's bottom line, restructuring costs since 2003 were estimated to total $3. 8 billion. ^ Investment analysts believed that the high costs of Kodak's shift to a digital strategy would be worth the price if the company was successful at growing profits from its digital products. ^^ Other analysts were unconvinced, saying â€Å"We are increasingly skeptical that EK (Kodak) can efficiently generate SCR BUSINESS CASE JOURNAL 27 digital revenue growth and we think additional plant closings, job cuts and development costs will continue depressing results. â€Å"^†* Some analysts worried that the continual charges against earnings and mounting debt might leave Kodak strapped for important funds for research and development. ^^ Competitive pressures in digital photography made innovation important but raised concems for some analysts. Kodak â€Å"lost their magic touch.There are way too many people producing similar technology better,† one analyst said. ^^ The important events in Kodak's history since 2003 are shown as Table 3. Leadership of Kodak also was in transition during this period. In May 2005, Antonio M. Perez replaced Daniel Carp as Chief Executive Officer of Kodak. Perez had come to Kodak in 2003 after working 25 years for Kodak's competitor, Hewlett-Packard. ^^ Perez brought his extensive expertise in digital imaging technologies to Kodak and quickly became the leader of Kodak's digital transformation. Perez had been instrumental in formulating Kodak's restructuring strategy as he was Kodak's President and Chief Operating Officer in 2003. ^ Despite the ongoing criticism of investment analysts, Perez remained optimistic about Kodak's prospects saying. We said in 2003 that it would take us four years to transform this company. The first two years were loaded with restructuring costs, and the analysts are reacting to that. My response is: Well, hello, we are following our plan. We said we'd grow digital revenue and profits, and generate a healthy amount of cash, and we are doing all ^^ SCR BUSINESS CASE JOURNAL Table 3 Key Events for Kodak 2003-2007 28 Date January 26, 2005†²Ã¢â‚¬  February 2,2005†³ March 2005†³ May 11,2005†³ January 5,2006†³* January 12, 2006'^ January 30,2006†²Ã¢â‚¬  March 2006†³ August 1,2006'* January 10,2007'^ February 1,2007 April 26,2007^† May 2007†³*' May 14, 2007^'Event Kodak's digital revenue rose 40% in the fourth quarter of 2004, more than offsetting a 16% decline in revenue for traditional film products. Kodak announced that for the first time, Kodak held the leading market share for digital cameras in the United States with 21. 9% share. Kodak changed the name of Ofoto, the online photo-sharing and printing site they had acquired, to Kodak EasyShare Gallery. Antonio M. Perez was announced as the next CEO of Kodak. Perez took over on June 1, 2005. Former Kodak CEO, Daniel Carp retired at age 57. Kodak announced a 10-year partnership with Motorola to develop mobile camera phones with Kodak sensors. Nikon stopped making most of its traditional film cameras.Kodak's digital revenues for 2005 exceeded revenues from traditional film for the first time. Digital revenues were 54% of total sales. Konica Minolta announced that it was exiting the photography industry. Some ofthe firm's photography assets were sold to Sony. Kodak announced that it would outsource the production of all digital cameras to Flextronics, a leading electronics manufacturing services provider headquartered in Singapore. Kodak announced the sale of the health care imaging division to ONEX for $2. 35 billion. Half of the proceeds were to be used for debt reduction. The sale of the division resulted in a decrease of 8,100 employees for Kodak.Kodak announced the first quarterly profit in eight quarters. Revenues for digital photography products had declined by 13%. Kodak announced a partnership with BestBuy to create the BestBuy Photo Center. The center provided Kodak's Eas yShare Gallery to BestBuy online consumers. The partnership would also provide for display of Kodak Gallery's photo gifts (mugs, purses, etc. ) in BestBuy stores. BestBuy would also offer pre-paid cards for prints and gifts. Kodak's digital consumer group sales (cameras, printers and retail printing) fell 14% due to Kodak's decision to stop offering low-end digital cameras and an industry-wide decline in printing snapshots.Kodak announced a partnership with Target to produce a co-branded site that permitted consumers to order photo prints online and pick them up in Target stores. The partnership also provided for display of Kodak Gallery's photo gifts in Target stores and for pre-paid photo cards. SCR BUSINESS CASE JOURNAL 29 One ofthe important changes championed by Perez was Kodak's new business model in inkjet printers. Kodak was upending the traditional business model in inkjet printers. Instead of pricing the printer devices low and making profits on high-priced ink cartridges, Kodak planned to sell higher-priced printers that used significantly less expensive printer cartridges. For example, Kodak's new line of all-in-one printers was priced at $149-$299, at least $50 more than comparable models. *^ The cost ofthe Kodak printer cartridges was significantly less, however, running $10 for black ink and $15 for the color cartridge. â€Å"*^ The Kodak printers were expected to save consumers 50% over the lifetime ofthe printer due to the cheaper printer cartridges. â€Å"*^ Although some analysts reacted positively to the new pricing model, others were doubtfiil saying. They (Kodak) are not fools, they are going after the sweet spot ofthe market, the people who print a huge number of photos at home, but they are up against big companies that can give a haircut to their own prices if they * ^ There was also some skepticism that consumers would pay more initially in order to save money over the lifetime of the product.A market research analyst described the consumers' perspective saying, â€Å"When it comes to printers, consumers look for the features they want, and then find the least expensive device that offers them. It is only later that they get sticker shock, when they're spending $50 for ink. â€Å"^^ For its part, HP had adopted a â€Å"wait-and-see† posture regarding Kodak's new printer pricing model. If Kodak's printers gained share, HP was prepared to respond. Kodak â€Å"is going into a gunfight with a knife,† responded Nils Madsen, marketing director for HP inkjets. ‘* Kodak predicted that it would take at least three years for the new printers to be profitable. â€Å"*^ Despite reporting a narrower first-quarter net loss in 2007, Kodak's financial results were continuing to show signs of stress.Sales of Kodak's digital camera group (including digital cameras, printers and retail printing) fell 14% during the first quarter of 2007. Traditional film revenues declined 13% over the previous year. ^^ Kod ak was losing less money, however, investors were expecting more. â€Å"Kodak needs not only to restructure, but to change its business. That's a bigger project. They don't have an overnight fix,† said one investment fund manager. ^^ Sacrificing current earnings to focus on long term success was a gutsy decision and members of the investment community wondered whether Kodak's executives had the fortitude to continue to pursue it and whether tiie path Perez had outlined for the company was indeed the right path. One investment manager siunmarized his perspective saying.That company (Kodak) used to be my favorite example of an old-tech company behind the eight ball. Kodak has crossed the Rubicon and gotten past denial. It may be struggling to figure out which road to take, but finally the company understands that the one it was on was getting it nowhere. You know what happens if you sit back and let history happen to you, so you've got to take a shot, and that's what they're ^^ Kodak also had to consider its strategies in light of changes within the digital photography industry. Much had happened since the launch of Kodak's digital strategy in 2003. Important trends included rapidly improving technologies, increases in the quality and use of SCR BUSINESS CASE JOURNAL 30 amera-enabled mobile phones, maturing demand in the United States, rapid adoption of digital photography in foreign markets, and increasing competitive challenges. Improved Technologies and a Shorter Product Life Cycle Like most technologies, the market for digital photography continued to rapidly change. Technological innovations improved the resolution of digital cameras (increased the mega pixels captured and thus improved the quality ofthe photos when enlarged). Improvements in optical and electronic technologies and subsequent reductions in production costs resulted in the introduction of higher margin, digital single-lens reflex (SLR) cameras into the market.These cameras featured in terchangeable lenses and appealed to consumers buying their second digital camera and to photography enthusiasts who could utilize the traditional camera lenses they already owned on the new SLR digital camera bodies. Many digital SLR models offered significantly better image quality than point-and-shoot digital cameras due to their use of larger imaging chips. Industry insiders expected strong growth in the digital SLR segment of the market as consumers looked for more capabilities and flexibility in their digital cameras. Canon, Nikon, Sony and Panasonic dominated the market for low-cost digital SLRs in 2007. Camera makers found the product life cycle of the digital era to be markedly different than the rather stable product life cycle of traditional photography.For example, the Nikon topof-the-line F-series of fllm cameras had been redesigned only six times over ahnost 50 years of production. ^ By 2006, new features-laden digital camera models were introduced every few months rat her than years apart. Makoto Kimura, president of Nikon Imaging summed up the change saying, â€Å"In the past, as a camera maker we were able to take it easy, watch what was happening. Now, we've had to revitalize ourself â€Å"^^ Industry analysts believed that the faster product life cycle and the demands for technological innovations favored consumer electronics companies rather than traditional camera makers—in manufacturing and in distribution.Electronics companies such as Sony possessed the ability to design and manufacture many of the components integral to digital cameras whereas traditional photography companies such as Kodak lacked these capabilities and had to purchase components ftom other electronic companies. ^^ Distribution of cameras also shifted with the digital age in a way that favored consumer electronics companies. Consumers were increasingly purchasing even relatively expensive digital cameras at electronics chains such as Best Buy, Staples, and Circu it City rather than at smaller specialty photography shops. Consumer electronics companies already understood the inventory and logistics demands of the national chains, while traditional photography companies struggled to gain valuable shelf space. As one researcher put it, â€Å"A new wave of technology has given the newcomers the upper hand.For the consumer electronics companies, digital photography has been all upside, while the photo industry was stuck in a slow evolution stage. â€Å"^^ Gains in Mobile Phone Camera Quality and Usage Technological improvements in the resolution of photos captured on mobile phones had increased significantly. In 2006, Nokia offered a mobile phone model with Wi-Fi capabilities and an integrated three-mega pixel camera. ^^ Other mobile phone manufacturers offered phones with an integrated two-mega pixel camera. Consumers increasingly expected that their mobile SCR BUSINESS CASE JOURNAL 31 phones would contain an integrated camera. Approximately 30 million U. S. obile phone owners used their phones to capture images in 2005, an increase of 180% over the previous year. ^^ By 2009, nearlv 70% of mobile phones were expected to contain cameras with multimega pixel resolutions. Analysts further expected that the improved resolution ofthe integrated cameras in most mobile phones would decrease the demand for disposable traditional film cameras and could have a negative impact on low-end stand-alone digital cameras. ^' Because consumers carried their mobile phones with them constantly, the integrated cameras provided a convenient way to capture images during their daily activities as well as at special events, such as concerts and parties.Improvements in mobile phone cormections to wireless networks also made it easy for users to upload and share images with friends and family. Figure 1 depicts the increase in digital image captured using mobile phones. †¢ 62 Figure Digital Images Captured Worldwide, 2002-2009 50OT c 400 D Ca mera phone images captured 9 Digital camera images captured 2002 2003 2004 2005 2{K}6 2007 2008 2009 Source: Lyra Researcti, lrc. , Consumer Imaging Intelligence, Second-Half 2005 Forecast Maturing U. S. Demand In 2006, signs indicated that the digital camera market was maturing. After growing by almost 670% from 2000-2005, unit sales of digital cameras were slowing with an increase of only 26% forecasted for 2009. ^ Prices of digital cameras were also declining, making profitability more difficult for makers of low-end cameras.For example, digital cameras with less than 4 mega pixels of resolution dropped in price by 40% in 2006. In contrast, higher-end digital SLRs tended to maintain the same price points, adding value for consumers by packing each successive model with even more features. There was a glimmer of hope for some growth in the digital photography industry as some analysts believed that U. S. consumers were upgrading their digital cameras more frequently than had been previously expected. The replacement rate was estimated at every two SCR BUSINESS CASE JOURNAL 32 to three years rather than every four years as initially predicted. ^^ However, demand was expected to decline in 2007 and beyond as many consumers had completed their upgrade cycle and fewer new consumers were entering the market. An expected slowdown in the U. S. economy further contributed to a slowdown in demand for digital cameras.Higher interest rates were beginning to depress consumer spending in 2005 as the percentage of disposable income that U. S. households paid for their mortgages and consumer debt was increasing. ^^ Growth Possibilities Abroad Digital camera sales were expected to slow down in North America in 2007, but remained strong in Europe and Japan. Emerging markets were also expected to provide growing demand as camera prices fell. ^ In 2007, digital cameras were in strong demand in Central and Eastem Europe. Unit sales of digital cameras showed substantial increase s in Russia (up 30%), Ukraine (up 70%), Poland (up 15%), Hungary (up 18%), and the Czech Republic (up 7. 7%) over 2005 sales. ^^ Although more cameras were purchased, sales revenues actually declined as a result of declining prices due to technology advances and competitive pressures.The top three vendors in the region in 2006 were Canon, Sony and Olympus (in order of share). ^^ Analysts expected continued sales growth in the region but noted that demand for digital cameras had matured in the Czech Republic.  ° China was seen as a market with enormous potential for digital camera sales due to improving economic conditions and China's more open posture to the rest ofthe world as the 2008 Olympic Games in Beijing approached. Sales were expected to grow from approximately 3 million units in 2004 to between 6. 5 and 10 million units in 2008. ^^ Growth in Chinese disposable income in the major industrialized cities such as Beijing, Shanghai and Guangzhou had created a market of 400 mil lion potential customers for products such as digital cameras. ^^ Interest in photography was keen among Chinese consumers as more Chinese began traveling abroad and wished to bring home photos from their trips. The World Tourism Organization predicted that approximately 100 million Chinese would travel abroad in the year 2020 (an increase of 500% over 2003 figures). ^Digital camera sales to consumers outside urban areas in China were expected to be slower. Lower disposable income and need for higher priority items like household appliances caused rural Chinese consumers to delay their purchase of digital cameras. ^^'*^ Furthermore, distribution channels in rural areas were not well developed. No major electronics chain equivalent to Best Buy or Circuit City existed outside the major ^^ Contrary to earlier industry predictions, Chinese consumers did not buy traditional film cameras as their purchasing power increased, but preferred to leapfrog the older technologies to buy the lates t digital camera models. ^ Sales of traditional film cameras and film canisters declined much more rapidly in China than had been anticipated; leaving companies that had depended on selling these products at risk of being jumped over by the newer technologies such as digital cameras and camera-phones. ^^ By 2006, more Chinese consumers owned cameraphones than digital cameras. ^*SCR Battling for Market Share BUSINESS CASE JOURNAL 33 The disruptive technology of digital photography had proved challenging for many traditional camera makers. In 2006, Konica Minolta announced that it would withdraw completely from the photography industry—despite being the third-largest producer of traditional photo film. ^ Nikon announced plans to gradually halt production of five models of traditional film cameras, leaving only two film cameras in its product portfolio. *^ Other traditional camera companies, such as Canon, thrived in the new digital world. Canon had become the world leader in di gital cameras with an ahnost 19% share in ^^ Consumers were offered more choices in the digital camera marketplace as companies in the consumer electronics industry began offering digital cameras. Notable examples included Samsung, a consumer electronics company with a strong position in the camera-phones segment and Hewlett Packard with strongholds in printers and personal computers.Consumer electronics companies were formidable entrants into the digital photography industry due to their strong brand awareness with consumers, established distribution channels and experience with many of the technologies involved in creating digital cameras. The competitive position of the companies in the digital camera industry rose and fell as consumers demanded more features, improved technologies and lower prices. The U. S. market shares of the top ten digital camera makers are shown as Table 4. Analysts believed that the strong gains shown by Canon and Nikon from 2005-2006 were due to their in troduction of lowcost digital single lens reflex cameras (SLRs). ^^ Worldwide, Canon led in digital camera sales with a 18. % share in 2006. *^ Sony followed with a 15. 8 percent share while Kodak was third at 10%. ** Both Canon and Sony benefitted from consumer interest in single-lens reflex models as well as growing demand in emerging markets. Sony's share ofthe global market increased as a result of its purchase ofthe digital single-lens reflex division of Konica Minolta in 2006. ^^ In the digital SLR segment ofthe industry. Canon held 46. 7% share in 2006, followed by Nikon in second with 33% share and Sony at third with 6. 2% ^^ o H a m en Olympus Samsung Fujifilm Panasonic Casio (N 068, 500 940, 800 867, 000 045, 700 185, 856, 500 496, 400 444, 700 046, 300 955,000 inChange Change From Shipments Market From Previous Previous Share Year Year 21% 000 000 18% 39% 780 000 17% 10% -31% 050 000 25% 44% 31% 326 400 68% 130. 600 18% -5% 964, 800 -15% 120% 680,500 N/A -19% 1,780,600 19 9% 350,000 N/A 136% 405,000 N/A Shipments m ^ ^ 587 600 330 000 880 000 381 600 804 900 317 400 N/A 1,782,600 N/A N/A ^ ^ V/N es H a 2 ‘Ho 2006 2005 2004 Shipments Market Share Market Share cn 00 Canon Sony Kodak Nikon ^ 00 20% 17% 16% 10% cn o o cn ( N g E g o 19. 4% 21. 9% 6. 2% 8. 1% 10. 4% N/A 8. 0% N/A SCR BUSINESS CASE JOURNAL 35 In segmented market share, signincant differences were evident in the purchasing preferences of male versus female consumers.Men seemed to prefer Canon while women preferred Kodak. ^* Analysts attributed the gender difference to women's preference for simplicity and desire for high-quality prints that could be shared with family and friends. Kodak met these needs for women with their point-and-shoot camera models and the EasyShare docking station. Men preferred the SLR models offered by Canon while Kodak was their fourth most popular choice behind Sony and Olympus. ^^ Gender differences were also observed in what users did with their digital pho tos. Women believed digital prints were more important than men (63% versus 53%). ^ ° Women printed approximately 35% ofthe digital photos they took while men printed only 25%. ‘ Men â€Å"took the picture and put it in the computer. But then it was like a roach motel for pictures. They never got out,† one industry insider reported. ^^ Although digital camera makers recognized gender differences in purchasing and usage behaviors, care was taken to address the needs and preferences of both men and women when designing and marketing photography products. For example. Canon utilized Russian tennis star Maria Sharapova in television advertising because she appealed to both men and women. by Representative data on the number of camera models and suggested retail prices offered the top five digital camera companies is provided as Table 5. jaPM a a O -t P GO O PH o O O I U U O m 00 ^ â€Å"3 O) -^ II II ^1 O uj N 0;gt; (Zl H et ‘S a  § PH 11 I « C †S a ON n Os O ON ^ 5 . -i g A †¢a †¢(-. †¢ S †¢^ o 6^ 6O â€Å". agi 00 — 0U-3  « le ^ a† y^ ob ^ e C3 .a o CM s †¢a Pi †¢O 6^ II O O Os  »2 O S— o u 1 o 00 00 o si ‘5b'p -2 S–S fe PL, ao o O ^ g a es .^5 a ^-3S a o U SCR BUSINESS CASE JOURNAL A New Kodak Emerges 37 In January 2008, Kodak announced that its turnaround was officially over. In advance of the company's annual strategy meeting in New York City on February 7, 2008, Perez announced: It is with great pride that I introduce the new Kodak, a company with a new spirit and winning attitude.While completing a difficult and unprecedented business transformation, we also created breakthrough products and services that feature Kodak's hallmark innovation, winning customer acceptance and critical praise for a brand renowned for its smart use of technology. In 2008 and beyond, we will leverage the innovative thinking of Kodak people to deliver on our commitments to sharehol ders and increase the value of this great company. ^^ Kodak executives pointed to multiple metrics to demonstrate the extent of the firm's transformation. Kodak's industrial park in Rochester, New York had been reduced from 1,600 acres to 700 acres since 1998. ^ °Ã‚ ° Eleven film plants had been shuttered, leaving the company with only three film plants worldwide. ^ °^ As shown in Figure 2, the number of Kodak workers had been reduced from 145,300 in 1988 to around 30,000 at the end of 2007.  °^ More than half ofthe remaining employees were considered â€Å"new,† joining Kodak since the launch ofthe firm's digital strategy in 2003. ^ °^ Revenues from the Consumer Digital Imaging Group (CDIG) had increased substantially since 2003. CDIG included digital cameras, inkjet printers, camera sensors, digital picture frames, online photo finishing, and digital photo kiosks. As shown in Table 6, CDIG revenues had almost doubled, growing from $2. 37 billion in 2004 to $4. 63 bi llion in 2007. Kodak did not report profitability data by product segment. SCR BUSINESS CASE JOURNAL 38 Figure 2 Kodak Sales, Gross Profit ; Net Income Per Employee*** 2002-2006 350,000 300,000 250,000 200,000 150,000 = o Q 100,000 50,000 0 50,000 2002 H Employees D Sales/Employee †¢ Gross Profit/Employee †¢ Net Income/Employee 70,000 $183,357 $77,771 $11,000 2003 63,900 $208,404 $81,612 $4,147 2004 54,800 $246,661 $95,000 $10,146 2005 51,100 $279,217 $107,339 $(26,654) 2006 40,900 $324,548 $122,152 $(14,694) o o o o m ( ^ . -H ON o 1-H s? ON ON rj !004 Perc ri †¢n 00 Tl Tl Tl 00 ^H m ON o ON VO O .-H' NO ON Tl .-H in †¢n VO o t^ a O n rj VO O 00 O 1-H 00 CN T-H o o T—H ri VO ri m O a Gro o tems ai a s a O a o (3 S U g u a ‘ S onsnmer Digi CJ r 1 Outside the U. Inside the U. S raphic Comm ilm ; Photofi Outside the U. Inside the U. S U U 11 other ealth Gronp . 5 ‘ 5 s ‘ S e t (3 / anna^ n u SCR BUSINESS CASE JOURNAL 40 Building implosions were another symbol ofthe firm's makeover.Kodak had shed more than 100 buildings since the 199O's, imploding three massive buildings during the summer of 2007 that had formerly housed manufacturing processes for the firm's film, paper and other chemical-based products. ^ °^ As the rubble of the old chemical plants was cleared, Kodak executives gave presentations for technology stock analysts praising Kodak's successful turnaround. The presentations were entitled â€Å"A New Kodak Emerges† and emphasized the end of Kodak's restructuring program; the creation of high margin businesses, such as consumer inkjet printers and camera sensors; and Kodak's expected return to sustainable profitability.According to company executives, Kodak had a clear advantage in the digital space due to its specialized knowledge of materials science (the result ofthe firm's 100-plus years of experience in traditional photography) and digital image science (through the firm's strong intellectual pro perty in digital technologies). However, stock analysts remained skeptical of the success of Kodak's transformation, continuing to question the competitive success ofthe inkjet strategy and Kodak's value proposition for camera sensors. Analysts further questioned the adequacy of Kodak's spending for research and development given the number of major initiatives it was pursuing. In 2007, Kodak spent 5. 19% of sales or $536 million on research and development, while Canon spent $3,351 billion or 8. 22% of sales on a more singular research agenda.  °^ Others continued to express concern about the commoditization of many of the business segments in which Kodak operated, persistently asking Frank Sklarsky, Kodak's chief fmancial officer, â€Å"So, where are you making your money? I just want to know. It isn't clear†¦ â€Å"‘ °^ The stock analysts' continued unease over Kodak's fixture was refiected in their stock recommendations with ten of eleven key analysts rating the shares as either neutral or as Despite the Kodak officers' assertion of successfiil transformation, there was open speculation in the press about the possibility of a breakup of Kodak or mergers with either Xerox or Hewlett Packard.Perez dismissed the notion of a merger with HP saying, â€Å"I don't have any comments about that. All those rumors—^there are many other rumors too. I wouldn't pay much attention. â€Å"^ ^^ Other rumors included mergers with Dell, a leveraged buyout by a private equity firm or billionaire investor. Warren Buffet's interest in Kodak as an investment. ‘^^ When questioned about the possibility of a breakup, Perez retorted, â€Å"They don't know anything about the company. Why would you do that? I don't see any good financial reason to do that. â€Å"^ Were the â€Å"winds of change† continuing to blow for Kodak? Was Kodak's transformation successful or were there other changes needed?Was it time for Kodak to merge or pursue a break up? Or was a leveraged buyout Kodak's best option for remaining independent?EndnotesDigital Camera Turns 30-Sort Of. The Associated Press, http://www. msnbc. msn. com/id/9261340/. Online Extra: What it ‘Boils Down To' for Kodak. (November 23, 2003).