Report on Barista

A Report on ————————————————- â€Å"BARISTA CAFE† UNDER THE SUBJECT â€Å"CONSUMER BEHAVIOUR (CB) Prepared by Vivek Jethva| 10MBA032| Jitendra Patel | 10MBA064| Hardik Khara| 10MBA039| Arvind Prajapati| 10MBA081| Sarman Goraniya| 10MBA025| Sandip Kanani| 10MBA036| Kapil Prajapati| 10MBA083| Nilay Khandalkar| 10MBA037| MBA 2010-12, Semester – iii Submitted to (Dr. Govind Dave) INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM) CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT) Table of ContentSr. No. | Particulars| Page no. | 1| About the coffee industry| 3| 2| Growth of the coffee industry in India| 5| 3| Present coffee production in india (2010)| 6| 4| About the espresso| 11| 5| About the barista| 12| 6| Case analysis| 20| 7| Learning from the case| 21| 8| Question & answer| 22| 9| Bibliography| 27| About Coffee Industry: It all began around 1000 A. D. w hen Arab traders began to cultivate coffee beans in large plantations. They began to boil the beans creating a drink they called ‘qahwa’ which translates to ‘that which prevents sleep’.The drink became widely popular, and the need for coffee beans grew. The brief timeline for the growth of coffee, cafes and everything related is given below: YEAR| Journey Of Coffee Industry| 850| First known discovery of coffee berries. Legend of goat herder Kaldi of Ethiopia, who notices goats are friskier after eating red barriers of a local shrub. Experiments with the berries himself and begins to feel happier. | 1100| The first coffee trees are cultivated on the Arabian Peninsula. Coffee is first roasted and boiled by Arabs making ‘qahwa’. 1475| The world’s first coffee shop opens in Constantinople. | 1554| The first establishment in Constantinople soon becomes widely popular, and two more cafes are opened. | 1600s| Coffee enters Europe through the p ort of Venice. The first coffee house opens in Italy in 1654. | 1652| The first coffee house opens in England. Coffee houses were called ‘penny universities’ (a penny is charged for admission and a cup of coffee) because a person could visit a cafe to discuss current affairs and social issues. | 1672| The first Persian coffee house opens. | 1683| The first coffee house opens in Vienna. 1688| Edward Lloyd’s coffee house opens. It eventually becomes Lloyd’s of London, the world’s best-known insurance company. | 1695| The first sign of the French Revolution had its roots in Parisian cafes where the people’s movement started gathering steam. | 1822| The prototype of the first espresso machine is created in France. | 1980s| Coffee is now the world’s most popular beverage, which leads to a boom in retail and hotel cafes. The American retail cafe Starbucks in born. | 1990s| With the growth of the Internet, cyber cafes are born, providing Inte rnet access and coffee to users. 2000s| With an increased penetration of PCs in homes, cyber cafe chains close, and re-immerge as retail coffee cafe chains. | The Coffee Cafe industry is currently one of the biggest and fastest growing sectors in business. The industry consists of a mix of individual cafes, hotel cafes and retail cafe chains. Individual Cafes: The main bulk of revenue is earned by small, individual cafes, run mostly by families and friends. It is a relatively unorganized sector. There are millions of such cafes around the world, and they provide customers with a homely, casual experience.The bulk of these cafes are mainly in Europe, where every little town or village has local cafes, where people gather together for a conversation over coffee, or just to be alone with their thoughts. These cafe’s have been the birthplace and sanctuary for various creative minds, revolutionaries and thinkers of our time. The most recent example is the author J. K. Rowling, who has written most of the Harry Potter series of books, sitting at her local cafe. These cafes set themselves apart from retail chain cafes and hotel cafes because they provide customers with a homely, classic appeal, which cannot be emulated.Hotel Cafes: Ever since the popularization of coffee, hotels all over the world started opening 24-hour coffee shops where visitors to the hotel could walk in for a cup of coffee and some food at any time. These coffeehouses are extremely important, because they provide international visitors to the hotel with a universal drink- coffee. Any customer can walk into any major hotel in the world, and enter the coffeehouse, and know what to expect. These cafes are not really major players in the coffee cafe industry, but rather provide supplementary services to the hotel industry.Retail Cafe Chains: The last, and the most organized sector in the coffee cafe industry, is the retail cafe chain. Off late, these chains have become extremely popular and a re growing at an ever-increasing pace. These retail chains have work with an organized structure of man, material and money. The work on developing a recognized brand consistent to all their outlets, which customers can easily relate to, wherever they go. They provide customers with a standardized level of service and quality at each of their outlets.The vast popularity of these retail chains is shown in the rapid international growth of brands like Starbucks. Customers can do to any Starbucks across the world and know exactly what to expect. Growth of the Cafe Industry in India: Hot beverages have always been a part of the tradition of India, especially South India. Coffee took the first seat in South India when the traditional Brahmin classes brought down the beverage from the ruling British around the 1930s. During the early years the drink was confined only to traditional rich Brahmin families who served filter coffee in a ‘davra- tumbler’.Coffee is no more confined to the rich Brahmin class now, though the tradition of serving filter coffee in the ‘davra- tumbler’ continues to this day. In order to spread the drink, coffee houses emerged at various places in the country, which also served as the opposite places for lawyers and the educated class to hold discussions ranging from politics to cinema. It is also believed that many scripts and ideas for films evolved here. One of the oldest coffee houses in South India is the Raayars mess, Chennai, which serves first class filter coffee even today.The mess was established in the 1940s and continues the tradition of coffee but supplements it with Tiffin also. The vintage location of the mess attracts huge crowds even today early in the mornings, Coffee however was not the only item on the menu. These places also served food and other drinks to their customers. The drink also became famous and as a result even five star hotels began cashing in on it. Several hotels all over the country started opening coffee- shops that catered to high- end customers. This showed the popularization of coffee cafes, to all sections of society.The drink has now become more of a concept than merely a drink itself. The last decade witnesses the growth of numerous coffee pubs in the country. A number of coffee cafe owners tried to westernize the taste in contrast to the filter coffee. Now, large retail chains like Qwikys, Barista, and Cafe Coffee Day have opened up around the country. The concept of a cafe today is not merely about selling coffee, but about developing a national brand. Retail cafes now form a multi- crore industry in the country, and have huge potential for growth locally, and internationally. Present Coffee production in India (2010):Production: The government’s Coffee Board now pegs MY 2009/10 coffee production at 289,600 tons (4. 83 million bags of 60 kg) tons, which included 94,600 tons Arabica and 195,600 Robusta, lower than the Post-Blossom estimate of 306 ,300 tons, due to adverse weather conditions during bean maturing and harvest stage. Furthermore, rains also reportedly caused some quality problems, particularly in the Arabica variety. Although trade sources initially contested the Coffee Board figure saying that the Board estimate of the crop loss was on the lower side, now they are in agreement with the Board estimate.Some even believe that production could be marginally higher than the Coffee Board estimate, given the current strong export trend. Outlook for the MY 2010/11 crop presents a mixed picture. Although several coffee growing regions have received good pre-blossom and back up showers, rainfall has been poor in some parts of Coorg and Tamil Nadu. High February/March temperatures could affect Robusta production to some extent, although heavy December 2009 rains left enough soil moisture, which may help compensate for the lack of pre-blossom showers.The Coffee Board is expected to release its Post Blossom forecast in late May or early June. Meanwhile, industry sources forecast MY 2010/11 coffee production marginally lower than the MY 2009/10 estimate at around 275,000 tons, which include 175,000 tons of Robusta and 100,000 tons of Arabica. Coffee pests such as white stem borer and berry borer, although not completely eradicated, are under control due to better agronomic practices. Higher coffee price realization during the past three to four years has prompted coffee growers to apply more farm inputs and follow better agronomic practices, supporting higher production.Labor costs, which accounts for almost 65 percent of the coffee cost of cultivation, continue to escalate. With off-farm employment opportunities increasing, coffee planters have started experiencing shortages of skilled labor, which could become a major problem in coming years. Higher price realization for coffee is now helping growers to some extent mitigate the higher labor cost. The Indian government’s National Rural Employme nt Guarantee program and a highly subsidized rice and wheat distribution program have further exacerbated the labor shortage in the plantation sector.Although limited mechanization is taking place in some coffee plantations, large-scale mechanization is difficult in India because of uneven plantings and small sized holdings. Although the coffee planting and bearing area in India has generally shown an upward trend, mostly due to some expansion of coffee cultivation in non-traditional states such as Andhra Pradesh and Orissa, coffee production, especially Arabica, has been declining due to diminishing yields (Fig 1a & 1b).Coffee productivity in the non-traditional areas, mostly Arabica coffee, is reported to be much lower than in the traditional belt, which pulls down overall yield. To contain the white stem borer menace, there was some uprooting of infected trees and replanting with new stock in the Arabica belt supported by the Coffee Board. These replanted trees are yet to reach b earing stage. According to industry sources, India’s coffee production will stabilize at around 300,000 tons once the replanted trees come into full bearing.A significant share of low quality domestic Robusta coffee and some imported low priced coffee (for re-exports) goes into the production of instant/soluble coffee. This segment is almost entirely branded and packaged, and is dominated by multinationals such as Nestle and Unilever, and the Indian conglomerate Tata Group. In recent years a few other Indian companies have made a foray into this segment with some success. Although instant coffee production capacity is increasing, actual production is estimated to be around 45,000 tons (120,000 tons on green coffee basis).Organic coffee production is miniscule at around 300 tons due to lower yields and the absence of a significant premium over non-organic coffee. Out of 220,000 coffee holdings in the country, 218,000 holdings belong to small farmers having less than 10 hectare s, which account for 70 percent of coffee production. Coffee cultivation is mainly confined to southern states of Karnataka (70%), Kerala (20%) and Tamil Nadu (7%). With a view to expand coffee cultivation, the Coffee Board has been implementing developmental programs for coffee development in the North Eastern Region and Non Traditional areas.During the 11th Five Year Plan, the Coffee Board had proposed to support a coffee expansion program taken up by the Integrated Tribal Development Agency on 24,000 ha in Andhra Pradesh and on 850 ha in the North Eastern Region. Indian Coffee Marketing System Indian coffee producers have three ways to market their coffee: (a) sell directly to exporters through an exporting agent, (b) hold it in a curing factory before selling it; (c) sell it at voluntary auctions. Smallholders, who dominate the Indian coffee scenario, mostly sell their parchment coffee (or dry cherry) to exporters through exporting agents.The agent takes the coffee beans to the curing factory, where they are checked for quality which must meet the exporters’ standards. The second method allows the coffee grower to store the coffee with the curer before selling it in order to speculate on price movements. Under the third method adopted mostly by large producers, coffee is sold at a voluntary auction, organized by the Indian Coffee Traders’ Association. In this case, the producer takes the coffee to the curing factory and stores the green beans in the auction warehouses, sending a sample for auction.Consumption: According to the Indian Coffee Board, domestic coffee consumption is increasing 5 to 6 percent annually, partly due to expansion of the coffee cafe culture and the spread of the coffee drinking habit throughout India, even into non-traditional coffee drinking regions in the north. The concerted efforts of the Coffee Board and coffee marketers in promoting the beverage as a lifestyle drink via coffee cafes and vending machines has added more visibility to coffee.According to a survey sponsored by the Indian Coffee Board, coffee consumption in 2008 is estimated at 94,400 tons, 73 percent in urban areas and 27 percent in rural areas (south India). Based on this, coffee consumption in 2009 is estimated by the Board at 97,000 tons and in 2010 at 100,000 tons. Trade sources are, however, skeptical about the Coffee Board’s high consumption figure. According to them, production, supply and distribution fundamentals do not support such high consumption figures.According to them, a significant quantity of chicory is blended with coffee, particularly in the soluble coffee segments, which tends to amplify the coffee consumption figures. According to some sources the amount of chicory going into the coffee blend is as high as 25,000 tons, which tends to over-estimate actual coffee consumption. The indicative Bangalore wholesale price of Arabica Plantation â€Å"A† averaged Rs. 203 per kg in 2009 ($2 per pound), a nd Robusta Cherry â€Å"AB† averaged Rs. 96 per kg (98 cents per pound), compared with the 2008 average price of Rs. 146 per kg for Arabica and Rs. 110 per kg for Robusta.The retail price of pure grind coffee (Arabica plantation) in major southern cities averaged around Rs. 270 per kilogram ($2. 75 per pound), a 17 percent increase over a year ago price. ($1= Rs. 44. 50). Farm gate price for Arabica parchment registered a 30 percent increase in CY 2009 but the increase was much lower or even negative in the case of Arabica cherry and Robusta parchment and cherry. India’s Growing Coffee Cafe’ Culture Although tea is the main drink of choice in India, now hundreds of trendy western-influenced coffee bars have emerged across India in Tier I and Tier II cities.The bean has become big business, so large that it now competes against the once dominant tea on menus everywhere. For coffee fans, India offers a few notable coffee bar chains. The significant growth in the n umber of coffee retail chains in India is due to the changing lifestyle patterns of Indian middle class families and an increase in their disposable income. Although the coffee bars’ contribution to India’s total coffee consumption may not be significant, these coffee cafes have added more visibility to coffee and opened up an outlet for various value added food items.Barista Lavazza :One of India's largest franchised chains of coffee bars, the Barista Lavazza coffee company operates around 205 outlets across India – 15 creme lounges and the rest espresso coffee bars. It plans to open 300 new stores over the next three years and has begun aggressively marketing its products outside Indian borders into neighboring countries. Considered the Starbucks of the East, Barista offers many of the same menu items like espresso, lattes, cappuccino and various pastries, in addition to basic coffee.Despite being Indian, Barista sticks closely to its Italian roots by serving Italian coffees exclusively. (www. barista. co. in), Cafe Coffee Day A later entrant than Barista, Cafe Coffee Day (CCD) offers nearly everything coffee-related, from take-home products and equipment to fully operational stores. Since the grand opening of the first store in Bangalore in 1996, Cafe Coffee Day has grown to become India's largest coffee retailer, with exports into Europe and the Middle East. Like Barista Lavazza, CCD tends to be in every major Indian metro area. Cafe Coffee Day currently has 810 outlets in over 100 cities.Costa Coffee The British influence isn't entirely missing from Indian cities, as the UK's largest coffee retailer has been setting up shops alongside other coffee competitors. The London-based Costa Coffee Company specializes in imported Italian coffees and made-to-order coffee concoctions like risteretto (a coffee stronger than espresso) and â€Å"Flat Whites† that feature custom barista designs in the froth. Qwiky’s Coffee Pub The coff ee house offers about 101 varieties of coffee, serving drinks such as espressos, lattes, cappuccinos, mochas, americanos and friazzos. It also offers grilled sandwiches, pastries and ice creams.Qwiky's clothing brand, greeting cards, magazines, books and coffee mugs are also available. | | Trade: Assuming a better than normal production this year, MY 2010/11 coffee exports are forecast at 200,000 tons, marginally lower than the MY 2009/10 estimate of 210,000 tons. Although export permits issued in MY 2009/10 through March 2010 were ahead of last year, the recent steep appreciation of the India rupee against the U. S. dollar is making exports less competitive. Coffee exports in MY 2008/09 were around 175,000 tons, 20 percent down from the MY 2007/08 exports of 220,000 tons because of reduced exportable surplus and igh domestic prices vis-a-vis global prices. On a calendar year basis, India’s coffee exports in CY 2009 were 189,000 tons compared with 213,000 tons in CY 2008. Ita ly, Russia, Germany, Belgium, Spain, and Finland account for almost 55 percent of total exports. Exports to the U. S. in CY 2009 were around 3,300 tons up from 2,500 tons in CY 2008. India imports small quantities of low-priced coffee, mostly from Indonesia, Uganda, Vietnam, and Ivory Coast, for value addition and re-exports. Such imports in IFY 2007/08 were around 27,000 tons and 29,000 tons in IFY 2008/09.The Perfect Espresso 1. The taste of your coffee will be directly affected by the amount of coffee you dispense into the handle; Single handle: One complete pull 7g No more – no less Double handle: Two complete pulls 14g No more – no less 2. Tamp the coffee. Hold the handle in your left hand, tamp with your right hand. As you tamp give the handle a good hard twist left – to – right to ensure a solid pack. 3. Wipe the excess grounds from the rim of the handle. Note: This will ensure that you don’t have coffee grounds build up on the rubber seal i n the brewing head.Over time this build up will cause grounds to leak into the coffee drink you are preparing. 4. Brew the espresso into a demi tasse. The correct brewing time for an espresso is 20 – 25 seconds. About The Barista: Background, Market Entry ; Growth Barista coffee was established in 1999 with the aim of identifying growth opportunities in the coffee business. Increasing disposable incomes and global trends in coffee indicate immense growth potential in one particular segment. More significantly, they believe they have been quick to spot a latent need waiting to be trapped: Coffee lovers seek a complete experience.One that combines intelligent positioning with the right product mix and carefully designed cafes. In other words, customers seek an â€Å"experiential lifestyle brand†. As of today, Barista exists in over 22 cities, and operates over 140 outlets nationally. In the last 2 years, Barista has opened over 100 outlets in the country and with a new o utlet opening nationally every 14 dates; Barista is currently experiencing phenomenal growth. With outlets opening in Sri Lanka and Dubai, Barista is looking at potential growth opportunities in Asia, making it highly competitive international brand. Product SourcesBarista sources its coffee beans from around the world, but a major supplier is TATA Coffee, part of the TATA Group that owns a large stake- holding in Barista. These coffee beans are then sent to Venice, Italy where they are roasted into a blend exclusively for Barista. The food and desserts at Barista is exclusively catered to by the Taj, who ensures a high standard of quality with all its products. Barista also sells merchandise through its store, all of which is imported. The merchandise accounts for nearly 1/6th of Barista’s overall sales. Quality Sources Barista has a check on the quality of its products every 14 days.Barista also incorporates TQM at its headquarters in Delhi. Since Delhi is the base for all its distribution, quality control measures are adopted there to avoid any poor quality products being distributed. Serving Size The serving size of a product is a measure, not only of quantity, but also of value for money. The average serving size for Barista’s main product categories is detailed in Table given below: Product Serving Size Smoothies | 240 ml/ 300 ml| Cold Coffee | 340 ml| Hot Coffee (2 kinds) | 300 ml| Granitas | 340 ml| Pricing: Barista has a ‘Skim Pricing Policy’. They began with a higher price, and skimmed the cream for the market.With the sudden spurt of growth in number of outlets, came the benefits of economies of scale. Because of this, they have been able to gradually lower their prices, and appeal to different segments of their target market. Currently, their prices are the lowest they have ever been, and they can competitively match their prices against Cafe Coffee Day’s prices. The prices are constantly changing though, and the l ast 1-year has seen 3 changes (mostly reductions) in prices. This gradual price reduction meant that Barista could maintain its profit- maximization policy until it could earn large cost savings because of the benefits of high volume.The main factors that affect their pricing are their cost of goods sold. The costs are quite high because imports a majority of its products and product- sources. Process: The order and delivery process at Barista is based on self- service, where a customer goes up to the counter to place his order, and goes back to the counter to pick his delivery once it is prepared. Positioning: Consumer Profile: According to research, over 65% of Barista’s customers are in the 15- 30 age- group. The majority of these are students and young urban professionals. Brand Image:Barista positions itself as a brand for anyone who loves coffee. Their products, services and outlets are more like the traditional European cafes, where people would meet for the love of co ffee, and for an intellectual appealing time. They position their outlets as a place â€Å"where the world meets†, and they look to appeal to anyone in the 14- 60 age group that loves good coffee and looks for a nice quiet time. * Products: Barista’s product mix constitutes a wide range of products that appeal primarily to traditional coffee lovers. Their products themselves are traditional products with traditional names.Food items like croissant, pastas, and sandwiches are complimentary to their coffee, and project a very classic image of Barista. Their merchandising also consists of primarily coffee related products like coffee beans, coffee machines, etc. * Prices: Considering that Barista is trying to target a market whose age range is between 18 and 60 years, a pricing policy appealing to this segment is difficult. Extremely low prices act as a deterrent to some customers who might regard it as an indicator or quality, while very high prices cannot be afforded by most of the youth.But since Barista’s current consumer profile is quite young, their prices are mostly inexpensive, brand at par with their competitors. * People: The people at Barista are characteristically trained to be Pleasant, Polite and Positive. They ensure you have a quiet, uninterrupted visit and provide an escape from the daily pressures of life. Their uniforms are in sober shades of brown and orange, and contribute to the overall laid-back feeling of the cafe. * Logo, Colors, Images: Barista, since the beginning has looked to use colors in its cafe interiors, logos and images; to project a â€Å"warm, earth glow, synonymous with coffee†.Barista uses shades of Orange ; Brown to good effect to promote its â€Å"laid- back† atmosphere. The logo is a combination of Brown, Orange and Light Yellow; with the word â€Å"Barista† written in an upward curve, and the word â€Å"Coffee† underneath. A simple logo that perfectly expresses Baristaâ₠¬â„¢s brand image: A traditional cafe for coffee lovers. * Decor and Architecture: Barista’s internal decor and architecture expresses the simplicity you would normally associate with traditional cafes. The furniture is made of light shades of wood, and there are comfortable sofas in bigger cafes.The walls are shades of orange, with various photographs of the love for coffee spread around each outlet. * Literature: The literature provided by Barista is indicative of its brand image. The menus, posters, pamphlets are all traditionally designed, with a classic and simple look. One aspect of particular note is their magazine, which is privately circulated in the cafes. The magazine encourages customers write, draw, make etc anything creative; and this is then published in the magazine. The magazine not only provides an avenue for advertising, but also an opportunity for Barista to express its brand image. * Place:Barista looks to cater to their target market with strategically l ocated outlets. Their outlets are generally located at High Street/ Family Entertainment Centers. Considering their generic appeal, there are Barista outlets in and around Malls, Cinemas, Colleges, and Offices etc. this endorses their brand image of a cafe that appeals to coffee lovers of all ages. * Promotions: Barista currently carries out mass promotion campaigns. This is mainly in the form of promotions in the Press, TV and Radio Medias. At present, they do not rely heavily on advertising, but rely more on sponsorships and strategic alliances with other corporations.Barista also takes part in various sales promotion activities to help increase sales at their outlets. * Sponsorships: Barista sponsors various events and festivals, which provides them valuable promotion directed at strategic markets. The sponsorships are mainly in kind, although major events are sponsored in cash also. * Collaborations: Barista has entered into special collaborations and alliances with various part ners for co- marketing brands. For example, Barista entered into a deal with Leo Mattel toys to provide the popular board game Scrabble at every Barista outlet across the country.This is an ideal alliance for both the organizations, because it provides Leo Mattel with an important avenue for promoting their product, and it provides Barista’s customers an added attraction for spending more time at Barista outlets. Barista has also entered into partnerships with various movies, for promotions through Barista, and recently, they tied up with Star World for its â€Å"Absolutely Everybody† campaign. * Sales Promotion: Barista uses a special â€Å"Barista Coffee Card† for its sales promotion activities. The Barista Coffee Card entitles you to one complimentary hot beverage when you are done sipping seven.It is available to all Barista coffee regulars. No membership fees, no references required. Fill out the card and you are a member. As a Coffee Card holder, you earn one stamp on the card every time you purchase a beverage. Simply present the card to the cashier when you place your order at any of their outlets. Once you have collected seven stamps, you can hand over the card to receive your complimentary hot beverage. Barista hopes this card can help drive sales growth, and increase customer retention. * Distribution: Distribution of outlets Every Barista outlet is owned by the company, and not franchised out to anyone.Barista can thus control and make quick changes to its entire retail chain. Barista currently operates in over 120 outlets all over the country, and at their current rate, they are opening a new outlet approximately every 10 days. They have a market presence in over 20 cities. Mumbai alone has over 30 outlets, and the number of outlets in the city is increasing at a phenomenal pace. Barista has a thumb rule for selecting cities and locations for the distribution of outlets. Location: This is a prime factor in determining the succ ess of a retail chain.However, Barista Coffee has adopted a top down approach, wherein they first identify the cities and then decide on precise locations within its limits. Selecting a city: Barista has devoted substantial management time and effort in zeroing in on the cities where they are now situated. The selection of the cities was based on the following criteria. * Sizeable population of executives, students and families in SEC A ; Barista category; * High disposable income with people looking for new vistas in leisure and lifestyle oriented concepts; * High level or organized retail activity; Rapid socio- economic development; * Level of commercial importance (Industrial cities, state capitals etc. ) * Number of educational establishments and opportunities available for employment. On the basis of the above criteria, they had initially targeted cities like Delhi, Mumbai, Bangalore, Chennai and Hyderabad. Chandigarh and Ludhiana were later added due to tie- ups with ‘Pl anet M’ and ‘Ebony’ to set up store-in- stores at their outlets. They are also pursuing an equally aggressive international business expansion strategy. They have over 50 overseas locations presently under their consideration.They have already done their groundwork in terms of getting brand and name registrations in over 30 of these locations. To facilitate their global expansion, they plan to work with strategic partners, who share the same vision of expanding and promoting the brand worldwide. Currently they have opened new outlets in Sri Lanka and Dubai as a part of their international strategy. Barista acquired by Lavazza: Lavazza Group signed an agreement with Sterling Infotech Group to acquire Barista Coffee Company Limited and Fresh ; Honest Cafe Limited.Barista is the second-largest Indian coffee shop chain in terms of outlets, with 150 coffee shops of which 132 in India mainly located in the capital city of New Delhi, in Mumbai and Bangalore. The transac tion was carried out based on a precise development strategy that will lead to the opening of 400 outlets by 2010. This target will be achieved leveraging on the excellent premium positioning and importance currently reached by Barista on the Indian market. Fresh ; Honest Cafe focuses on the vending business, specifically on office coffee service, and is the leading company in the bean-to-cup segment (high quality bean product).With an extensive footprint in over 22 Indian cities, Fresh ; Honest Cafe supplies an average of 300,000 cups of coffee per day, equal to about 800 tons of coffee per year. The company is expanding rapidly and has a production site in the southern region of India. Among its customers, it counts the most prestigious hotel chains in India. â€Å"The acquisition is part of our strategy aimed at expanding our operations in markets with a high development rate and a high growth potential, through a careful policy of acquisitions and alliances,† stated Alber to Lavazza, Vice President and CEO of the Group. This ambitious policy has a strong economic impact due to the importance of this transaction, but it also has a significant impact in terms of international expansion and development of our brand†. Through this transaction, signed by Lavazza, assisted by Lazard, Lavazza Group becomes one of the leading players in India in the premium coffee sector, thus strengthening also its position as a worldwide player. The total investment for the acquisition and commercial development of the two companies in India is estimated to be approximately â‚ ¬100 million over the next three years. We are delighted to enter the rapidly growing Indian market through Barista and FHCL. The Agreement fits in well with our strategy to grow in markets with high development potential. In this respect we are proud to enter India with such a significant acquisition, which allows us to take a leading position in coffee shops and in the away from home marke t in line with Lavazza culture, we will take forward our values; which are attention to consumer needs and a passion for high quality coffee. † added Alberto Lavazza.Besides investing in the very interesting Indian coffee market, Lavazza is also monitoring other emerging markets for potential future investments. Distribution of Stock The distribution of stock at Barista begins from the coffee beans being sent abroad for roasting. The roasting takes place in Venice, and the beans are then supplied to the main warehouse in Delhi. Stock is then distributed to the various Regional Warehouses, and then to the local Warehouses. The outlets get their stock from the Local Warehouses. Barista uses a Re-Order Level system for the distribution of their stock.Barista out sources its transportation needs from external organizations, and currently uses trucks as the preferred means of distribution. Case analysis of barista coffee: Swot analysis of the company: * Strength: * Good customer re lation * Faster delivery * HR are key assets * Wide choice for coffee * Weakness: * Expensive brand perception * Very few stores * Opportunity: * Can introduce cheaper coffee. * Can go to smaller town and cities. * Can diversify into tea segment * Threat: * Competition from the existing coffee chains and outlets. Effects of Govt. commodity price. * Identify problem(case analysis) 1) Strategy of company was not proper for that reason company making loss and 10 non-performing outlet was close in 2005. 2) Price of coffee was very lower as compare to providing their service and cost of product * Establish the problem 1) Barista wanted to tread cautiously this time. It had faced several problem later on as a fall out of it’s the earlier strategy that hinged on achieving rapid growth and driving first mover advantage by opening as many outlets as possible in key cities.It opened 75 outlets within the first two years of operation, where as its competitors, CCD acted much cautiously initially and had set only 18 cafes in its first five years. In 2005, barista was forced to close 10 non- performing outlets. This outlets was not able generate enough profit. Strategy for expansion of barista was not proper for that reason company was making loss and also faced many problem in this business like closing the outlets. 2) They are targeting upper middle class and upper class people and they are also providing best service and product but pricing policy was not good nough as per services and product quality. Upper class people also ready to pay higher price for coffee due to services and quality. Company need to increase price of coffee so, company can overcome from losses. * Generate alternative 1) Make proper strategy and avoid rapid growth. 2) Increase the price of product. * Evaluate the Alternative 1) For the rapid expansion of business they were not focusing on strategy and weaknesses of company. Company was opened many outlets in first two year but this outlet w as not able to generate enough profit. So, company need to make proper strategy and avoid rapid growth. ) Price of company is very lower as compare to services and product. So company wants to increase the price of coffee. * Priorities Alternatives 1) Make proper strategy and avoid rapid growth. 2) Increase the price of product. * Learning from the case * We learn from this case is how to expand business and how to run business. We are know somewhat about the company and we also learn about the company’s various strategy. Company had also know the consumer behavior for its product so we are atleast understand something about the consumer behavior.We are knew from the case that how consumer behavior affect to the company’s product. * We had also learn about various models for consumer behavior and how that affect to the consumer behavior. Barista Coffee case QUESTIONS – ANSWERS 1. Was the current pricing and product mix strategy right one? Ans-The pricing strateg y for Barista was somewhat different than others. The high pricing strategy was adopted by Barista by high product quality. The product price generally depends on the quality of the product. The eight steps followed in the procedure of making Barista Coffee by the brew masters.The people who involved in the procedure to make the coffee are known as brew masters. So the main aspect to see the pricing strategy is to compare the quality of products of Barista and the services provided by the company. So let we see some of the key factors which influence to the high prices of Barista Products. * The product of Barista i. e. coffee is passing through eight processes in which the customers get the extra- ordinary quality as well as services by the Barista outlets in each and every places. The customers which targeted by Barista was the high class people but the number of prospected customers was very less. Because of this reason we can say that the pricing of the product was the excellent due to which the customers remains same and price do not affect a lot. * Competition in the market was high but the services and the product quality was the uniqueness of the company. So they cannot give the franchise to the other owners of the places instead of putting the outlets. So, the pricing strategy of the Barista was right one according to segmentation adopted by them and services provided to the customers.Product mix strategy was the one of different strategy adopted by Barista to serve the customers by providing different kind of coffee making system and high pricing strategy. The products of the barista are as under: * El Salvador: A sweet tasting Rain Fores bean sourced from the Las Zerro Ranas plantation. We developed this brew at the request of a leading investment bank that was looking for the ultimate coffee, where it won out in a blind taste test over the â€Å"big name â€Å"brands. This may be our best coffee yet! Costa Rican Tarrazu: This coffee comes from th e Tarrazu region south of San Jose. It is prized for its high acidity, excellent body, and full complex flavor. * Guatemalan: Certified Organic: Grown at high altitudes without pesticides or manufactured fertilizers. If offers a distinctively sweet, smoky personality which distinguishes it from other prized coffees from Central America. Our CEO’s favorite! Sumatra Mandheling: Of the world’s finest coffees this is arguably the most admired. Gentle, with a long finish, its richness and complexity makes it the ideal coffee to take with cream.From the central part of northern Sumatra, one of the Indonesian islands, this wonderful, very intense coffee is highly desirable. In the cup this coffee possesses a heavy, full body, concentrated spicy, earthy and robust taste with an herbal aroma, all with little acidity. * Swiss Water Decaffeinated Colombian (X11) High grade â€Å"European prepped† Colombian coffees are put through a patented Swiss Water wash to remove 98% o f the caffeine, while leaving all the taste and aroma you expect from a fine cup of coffee. 42/2oz bags per case. * Mocha Java: A blend of Ethiopian and Indonesian Java coffees, often referred to as the Original Blend.Full bodied, with spicy overtones, roasted medium dark for a truly distinctive character. * Kenyan Blend: Known for their intense aroma of lush, ripe blackberries these larger than average beans produce a full bodied coffee; dry and winey, rich and lively. We blend them in a 2:1 ratio with fine Colombian Excelso to produce an excellent blend that is brightly acidic with no bitterness. 42/2oz bags per case. * Kenya AA: Probably Africa’s finest; has a full body, delicate acidity, smooth winey flavor and aroma with a dry winey aftertaste. Very popular with coffee aficionados. Kona Style: A distinctive blend of Arabica coffees that captures the light body, sweetness and balanced flavor that Hawaiian Kona is famous for. * French Roast: A fine blend of high grown Arab ica coffees brought to a high roast. its computer controlled roasting process is able to achieve a smooth bold taste without crossing the fine line to burnt. * Three Bean Reserve: The perfect balance of three distinctive estate grown coffees whose tastes complement each other when blended. The lush, winey Kenyan, spicy Guatemalan and the full bodied Colombian Supermom provide the ultimate cup of coffee.These are some of the examples of the coffee product of the company. The prices were charge almost double then the competitors and the services and the products also given with the high quality than others. So in that way we can say the pricing product mix strategy was quiet good and right one. 2. Should it go for premium prices or should it focus on affordability? The existing products provided by Barista to the customers and the pricing state that the people who are interested in this type of coffee product are the found of it.The eight step quality model also used by the company an d it has not given any franchise yet to focus on the service and products which was special for the customers. Moreover the profit of the company was in negative term i. e. it made loss so the by going affordable prices the company may occur more loss. The uniqueness of the company was the high service with high quality products with the experienced memory and for the customers. It may happen that in future the growth of the people with respect to standard of living increases so the no. of prospected customers will go up.In this way the company need to focus on go for premium prices instead of affordability prices. 3. What should be the best way to drive the expansion? Ans-Currently company is making loss as stated in the case itself. So the main area to focus on is the price and the targeted people of the products of Barista. Already barista has the second largest maximum number of outclasses across the globe. But the competitor like CCD and Starbucks entering in to the market and taking share of the market so the possibility of expansion is very less but it need to focus on existing one. The company need to focus on the following ways for expansion. The focus must be give the priority to the existing outlets * It need to focus on the coffee products rather than the service because 70% of the revenue generated by Barista coffee products. * So it not need to expand the outlets but it can expand the existing product portfolio in the uncovered region where the opportunity exist in the market. 4. Should it go for expansion through company owned outlets or should adopt the franchise rout? Ans-The total number of outlets are 106 which already owned by the company and the coffee preparation and the services provided by the company is arvelous. In the increasing completion and the quality, services and considering all other aspects like infrastructure, coffee makers, places and preferences of the customers it need not to expand through franchise instead of expansion by outlets. Thus focus on the existing and maintaining the quality with learning experience enjoying to having coffee by the customers are basic focus area of need to expand the markets. 5. Should Barista enter overseas markets? Ans-Barista need not go for overseas market because of some reasons as stated below: * Competition of foreign markets Rapid growth in the living standard of the Indian people. * Existence of the current outlets in India * Product mix and the pricing are difficult to maintain in going to the overseas markets is very difficult. Moreover if company wants to enter in to the overseas market then it is possible that the company need to give franchisee and decentralization. So it will lose the quality and service of experience learning of the customers. In this way the treat can be come up with the difficulty for to manage the outlets across the globe. Bibliograohy 1) www. indiacoffee. org/advertisement/rainfall-21-2-08. html 2) www. offeeday. com 3) www. barista. co. in 4) www. iipmthinktank. com/functions/marketing/compartive. pdf 5) http://www. superbrandsindia. com/images/brand_pdf/consumer_3rd_edition/Barista%20Lavazza. pdf 6) http://www. edynamic. net/upload/pdf/Barista%20PR. pdf 7) http://www. indiaprwire. com/pressrelease/food/2011082495762. pdf 8) http://www. barista. lk/media/image/corporate_profile. pdf 9) http://cms. colorstv. in/files/media-center/ff_150909. pdf 10) http://www. pinelabs. com/images/March_Newsletter. pdf 11) http://www. worldbaristachampionship. com/documents/WBC_Event_Hosting_Guideline

Hrm: Job Involvement & Its Dimensions

JOB INVOLVEMENT Job involvement can be defined as â€Å"psychological identification with one's work† as well as â€Å"the degree to which the job situation is central to the employee and his or her identity†. As employees with a high degree of job involvement are more likely to regard work as the center of their self-concepts (Frone & Russell, 1995), they are also more likely to increase their self-respect through successful job performance (Burke, 1991) and display of organizational beneficial behaviors (Diefendorff, Brown, Kamin, & Lord, 2002). Brown (1996) opined that employees with high job involvement would have greater psychological identification with their work, which in turn would increase job satisfaction. Mowday, Porter, and Steers (1982) also pointed out that employees' psychological needs are gradually satisfied as the employees become involved with their jobs and that this satisfaction establishes a sense of organizational commitment. Researchers have revealed that employees with a high degree of job satisfaction or organizational commitment display a higher degree of Organizational Commitment Behavior (OCB) (Podsakoff et al. 2000). These studies suggest that job involvement has a positive influence on OCB. Task variety might mitigate employees' involvement in their jobs, which in turn would have a negative effect on their display of OCB. Factors affecting job involvement: 1. Job involvement and empowerment: Empowerment is the process of enabling or authorizing an individual to think, behave, take action and con trol work and decision making in autonomous ways. Empowering the employees means providing them with higher level tasks, responsibility and decision making in the performance of their job. According to Wilkinson et al. (1998) and Karia and Asaari (2006), empowerment is a dominant HRM/TQM practice; there was a strong association with job involvement. 2. Job involvement and teamwork Teamwork is defined as a joint action by a group of people, in which each person subordinates his or her individual interests and opinions to the unity and efficiency of the group. Over the years, HRM/TQM policies have come to recognize and emphasize the importance of teamwork to facilitate employees' ability to work together to get a job done (Morrow, 1997; Karia & Ahmad, 2000). A study by Osland (1997) found that working together with a production unit leads to better employee attitudes. 3. Job involvement and Communication Communication is an important factor in organizations, for connecting employees and permitting organizations to function, as well as an essential element to the implementation of HRM/TQM (Gray & Laidlaw, 2002). When communication is open and continuous in three directions, (up, down and across) work processes and performance increases. This in turn increases employees' job involvement. 4. Job involvement and employee participation A study conducted by Karia and Ahmad (2000) found that employee participation, predicts significantly towards job involvement. In some other surveys though, results indicate that lack of participation would not be able to improve employees' personal abilities and capabilities, help them change certain aspects of personal traits and increase their self-respect. 5. Job involvement and leadership There is a weak relationship between leadership and employees' job involvement. The lack of top management commitment from any particular group within these organizations can be a serious barrier in the management of quality and it is one of the reasons for the failure of HRM/TQM efforts on job involvement amongst employees (Wilkinson et al. 1998). A study by De Hoogh et al. (2005), which found that leadership has a positive influence on employee outcomes. 6. Job involvement and Training and Development It is important that management understand these activities tend to require long-term commitment, as results are not immediately realized. Therefore, the training department must provide continuous training and development in ensuring the success of HRM/TQM practices in contributing improvement in job involvement. The findings of Karia and Ahmad (2000) regarding training and development, states that employees' can generate innovative ideas for solving problems; and it helps employees' in their personal involvement. Impact of Job Involvement Cohen's (1999) research supported the important status of job involvement as an antecedent to organizational commitment. Specifically, Cohen argued that those individuals with high levels of job involvement, which stem from positive experiences on-the-job (Kanungo, 1979; Witt, 1993), make attributions for these experiences to the organization. Thus, having previously received benefits from the organization and being obligated by the norm of reciprocity (Gouldner, 1960) to repay them, high job involvement employees feel compelled to reciprocate in some form. Cohen (1999, p. 292) asserted that â€Å"to the extent that positive experiences are attributed to the efforts of organizational officials, these are reciprocated with increased affective organizational commitment to the persons who caused them†. This increased affective commitment (i. e. where employees adopt the company's goals as their own and, therefore, desire to remain with the organization to help it achieve its goals (Meyer & Allen, 1984; Mowday et al. 1979) later is found to reduce turnover intentions, absence behaviour, and/or turnover (Cohen, 2000; Hackett et al. 2001), as well as increase job performance (Carmeli and Freund, 2001). Given the fact that job involvement is thought to be an important determinant of effort and motivation, and other job attitudes have been shown to positively relate to OCBs (Van Scotter, 2000), it is anticipated that those high in job involvement will engage in more OCBs. Theory suggests that these gender differences may be more evident for OCB-Is (i. . , behaviors directed toward others, such as helping), than for the less communal OCB-Os (i. e. , behaviors directed toward the organization). Regardless of a person's sex, it may be expected that an individual high in job involvement will feel compelled to engage in OCB-Os, such as staying late, attending non-mandatory meetings, and not taking extra breaks. Alternatively, OCB-Is may be exhibited at different levels for highly involved women and highly involved men. Specifically, women who are deeply involved in their work may feel more obliged to help others than equally involved men, because women may internalize the belief that they should act communally and help others. Thus, highly involved women may engage in more OCB-Is (operationalized as altruism, courtesy, and possibly sportsmanship) than highly involved men, suggesting that sex will moderate the relationship between job involvement and OCB-Is. In terms of the specific OCB dimensions, the Civic Virtue dimension is most closely related to job involvement. Conceptually this finding makes sense given that Civic Virtue is defined as the level of involvement a person has in the political life of the organization. The fact that both the OCB-O dimensions (Conscientiousness and Civic Virtue) and in-role performance were predicted by job involvement regardless of sex, lends credence to the idea that exhibiting behaviors such as staying late, attending meetings, and completing task duties are performed at the same level for involved men and women. These dimensions represent behaviors that can be thought of as facilitating task performance and enhancing the environment surrounding one's focal tasks. Job Satisfaction and job involvement Job involvement (Employee engagement, or Work engagement), is a concept that is generally viewed as managing discretionary effort, that is, when employees have choices, they will act in a way that furthers their organization's interests. An engaged employee is a person who is fully involved in, and enthusiastic about, his or her work. Several Studies have shown that there exists a direct relationship between Job Involvement and Job Satisfaction. Past research on voluntary turnover has produced very extensive and sophisticated models; however, a recent and more parsimonious model of turnover utilizes only two employee work attitudes to predict turnover propensity. These two attitudes are job involvement and organizational commitment. The premise discussed here is that job involvement and organizational commitment interact jointly to affect turnover. For example, the job employees do helps them meet their intrinsic needs, such as satisfactorily performing a challenging job, which, in turn, increases their sense of competence. This leads to increasing employees' job involvement attitude. Likewise, the organization helps employees meet their social and other extrinsic reward needs, such as pay, fringe benefits and promotions. This leads to increasing employees' organizational commitment attitude.

Teaching Essay

1.1 How teaching assistant can support the teacher in planning, teaching and evaluation of learning activities. Prior to the lesson I requested a copy of the teachers’ plans and after discussions we were able to agree using a variety of lesson plans, teaching methods, and implement targets to provide the most effective support to pupils and their needs, this gave me a clearer understanding of the learning that was going to take place and allow me time to familiarising myself with the subject matter, learning objectives and outcomes, this would also assist me to prepare any resources required for the planned lesson ahead. After agreeing the objectives of the lesson ‘Drip Drop’, were to explore some of the properties of water, to explore absorbent and non-absorbent materials and to find out how water drops behave on different surfaces. By asking for copies of the teacher’s long, medium, short-term planning, this helped me to provide extra support in the classroom by developing my understanding of the weeks and daily planning process and to set learning objectives, preparing, assessing and recording pupils’ participation and progression allow the teacher to see how effective my teaching is and whether the pupils are making progress in their learning. The role of the teacher is to supply a safe and supervised classroom for the pupils to learn in, encourage pupil learning by planning, preparing and delivering lessons in relation to the National Curriculum and meet school target whilst maintain its policies. The teacher assesses records and report on pupil’s progress and achievements and liaise with parents, sometimes attending meetings or responsible for literacy or science. Preparing the classroom for the lesson, checking the correct materials available to carry out the activity helps the teacher. Observation and monitoring of pupils work during the task helps me to make assessments to see if the learning has been successful and give feedback to the pupil and teacher on individuals performance or responses, if they have any problems, by doing this it helps me to make well-informed judgements about a pupils learning and progress and make any changes necessary to the activity. 1.2 Information the teaching assistant would require before supporting learning activities From the daily lesson plan I am able to identify the materials required for the lesson to complete the task. After reading the pupil’s records and initial assessment a decision was made to put the more experienced pupils with the ones who were not as confident to enable them to assist, encourage, help and work together to complete the task successfully. A class discussion was held to see if the pupils could think of the materials which would be required to complete the task I then wrote the answers on the whiteboard. The materials were absorbent and non-absorbent materials like plastic, paper and cardboard etc and things with which to make water drops for example, straws, plastic pipettes, and clean eye droppers, as water was going to be used a non toxic coloured paint was required to put in the water to make it easier to see, because I used the last of the cardboard I wrote this down on the reorder list. I emphasised everyone needed to act sensibly because sharp items were going to be used. I showed the class how to make drops with the different kinds of objects and gave them time to practice making water drops and try to make drops of different sizes. When they had mastered this I asked the pupils to drip onto samples of different materials. I asked them to see what happened when two, or more, drops meet, on a hard and non-absorbent surface. Later I separate the pupils into pairs and asked them: Can they race their drop with a friend? 1.3 The sorts of problems that may occur when supporting learning activities Informing the teacher before removing unwanted chairs made sure there was sufficient space for the pupils and equipment to work safely prior to the learning activity and by placing four pupils on each table gave better access to the water tubs and avoiding pupils pushing each other. The pipettes and resources were placed safely in the middle of each table. Before the lesson it was explained to suck the water up the straw was dangerous and requested the pupils to just dip the straw in the water, I asked if they knew why and explained about choking and emphasised about being sensible, the pupils’ then put on their aprons to protect their clothing. The pupils who found listening difficult, I put the questions onto laminated cards for easy reference explaining that I was going to ask those questions about the information later. I also wrote down the key questions on the whiteboard. Can you make different size drop? What happens to the drops when you drip them onto different surfaces? Can you make two drops join? What Happens? Whilst monitoring I removed a pupil from the activity for putting the pipette in his ear. The child was placed away from the activity, asking the pupil if he understood why he had been separated it was explained if he wanted to rejoin the activity he would need to act sensibly, after 10 minutes the pupil calmed down, and was asked to rejoined the group, giving the pupil encouragement and praise for better behaviour enabled the pupil to complete the task successfully. When the activity had finished I discussed with the pupil his behaviour and found he was upset because his hamster had died, I later discussed this with the teacher. After shutting the windows I relocated a pupil to a quieter part of the classroom as the noise of grass cutting was causing a distraction. The hot weather made the room too warm, two pupils started to flick each other with water I opened the classroom door to reduce the temperature and with a direct look and raised eyebrow showed displeasure at the pupils then separated them. Noticing one of the cheerful pupils was rather withdrawn and after talking they revealed that their Nan had died that morning I reassured the pupil and asked if they would like to read a poem about water, I then informed the teacher. Encouragement by praising their progress was given to the pupils with low confidence and pupils who finished their task early were asked to write a poem about their observations or about the drop race. After the activity was complete we had a class discussion asking pupils, how do you think it went? What would you do differently? I then asked the pupils to write down their observations in their books with correct date. 1.4 Strategies a teaching assistant may use to support pupils learning By using questions ‘What we think will happen’?, and writing down all the key points this confirmed the pupils understood the instructions prior to the activity and helped the class know what was expected of them. Placing the low confident pupils at the front of the class and rephrasing questions enabled them to understand the instructions more clearly. After discussion with another teaching assistant it was decided to enlarge the worksheet to A3 size to make it easier for the pupils who were struggling, encouraging them to write down their ideas then stick them onto the worksheet later and giving praise when the task was completed. Separating pupils into groups allowed the development of peer support activities and cooperative learning, allowing the pupils to benefit by learning and supporting each other. The pupils with confidence worked on their own initiative were able to write their own ideas directly onto the worksheet. Bandura, Skinner, Piaget and Vygotsky discuss that cognitive development occurs at an individual rate and cultures teaches a person what to think as well as how to think. I agree that children are not just passive discovers, they are constantly trying to make sense of the information they see, hear, feel and discover enabling some children to develop quicker than others. At the end of the activity reward stickers were given for using the correctly vocabulary in their poems and a discussion was held by using open-ended questions of (how, what, why?) this provided me with more information to enable me to assess the pupils’ learning and understanding and provide me with the information required to feedback later to the teacher 1.5 Providing feedback on learning activities to the teacher Both during and after supporting the learning activity, I recorded the pupils’ participation and progression and met later with the teacher, to give feedback regarding the issues encountered during the activity, I discussed the pupil who’s relative died and about the pupil behaving inappropriately during the session and being separated from the group. I informed the teacher why the worksheet was enlarged and why the laminated card was useful. I also explained I gave out some stickers for correct spelling and punctuation.

FINLAND ENERGY POLICY Term Paper Example | Topics and Well Written Essays - 1500 words

FINLAND ENERGY POLICY - Term Paper Example The ministry has been capable of establishing and exceptional versatile and decentralized energy system; they are based on both small and large energy production plants and a variety of energy sources. Finland itself has been capable of developing a strong energy technology or the energy cluster and it has grown in importance. The country has been in the forefront in the decreasing unnecessary regulation and therefore it has created preconditions for the greater efficacy and internationalization among the Finland’s energy companies (Ministry of Employment and the Economy, 2011). The Finland energy policy is based on three fundamentals: environment, economy and energy. The core elements of the policy are to secure the energy supply, develop competitive prices, and to meet the European Union common Energy and Climate goals. Another important principle is the integration of the environmental goals, other types of sustainable developments with the economy of energy. It is imperative to note that at each stage of the programme, the prospective price, the availability of the imported energy, and the larger frequency in which the decisions are made at the international level affect the energy policy (Ministry of Employment and the Economy, 2011). The energy policy of Finland is implemented in regard to the drawn-up energy policy documents like the objectives that have been set in the governmental negotiations and the Government’s Energy Policy Programme. There are factors that underpin the realization of the Finland energy policy and they are special programmes such as the National Climate and Energy Strategy and the international commitments. The energy policy was adopted in 2008 and it is determined by the National Climate and Energy Strategy and its additional programmes. The drafting of the Climate and Energy Strategy was done in consideration of the principles that underlie the energy

Nestl Essay Example | Topics and Well Written Essays - 2500 words

Nestl - Essay Example As a result business organizations across nations are breaching political and geographical boundaries in an attempt to grab a share of the market. The emergence of developing nations has created numerous opportunities for business organizations so as to expand into different markets. This has triggered a wave of competition among the business organizations to garb each other’s market share. International expansion also poses numerous challenges for multinational firms which have operations in different regions as markets in different nations have distinct consumer tastes and preferences apart from large scale variations in macro economical and political environments. The present study would deal with the aspect of international expansion and its effects on the product and marketing and product mix of the organization. The organization selected for the study is Nestle. The choice of the organization assumes significance considering the fact that the firm has its markets in nume rous regions and has a large range of product mix and categories that cater to many segments of the consumers across the world. About the Company Nestle is the global leader in the food and beverage industry segment and has a significant presence across numerous consumer markets across the globe. The origins of the company date back to the year 1866 when Henri Nestle founded the organization in Vevey Switzerland. The company has since then grown up a long way to emerge as an organization which boasts of its business presence in almost all the major markets of the world with a profit margin of CHF 108 billion providing employment opportunities to about 280,000 individuals. The company’s mission is to provide best quality and highly nutritious food to individuals across the globe (Nestle, 2011). Opportunities and Challenges of International Marketing International expansion has given rise to a new term called ‘Multinational Corporation’. The word multinational in b usiness parlance implies an organization in which the marketing related tasks are formulated in numerous nations and are coordinated across all the markets where the firm operates (Onkvisit & Shaw, 2008, p.5). International expansion throws numerous opportunities and challenges before an organization. On one hand it opens up numerous opportunities in the form of new markets with good potential. Saturation of a particular product line can also be handled by a firm if it introduces the product in newer markets. It also reflects numerous challenges for an organization as large scale market fluctuation and adaption with the local culture and sentiments play a major role in the success of firms in the international markets (Czinkota & Ronkainen, 2007, p.10). Figure 1: The Process of International Marketing (Source: Philips, Doole & Lowe, 1994, p.28) The figure above shows the process of international marketing in multinational organizations. The figure shows numerous challenges such as a ttitude based barriers, unsolicited orders, lack of willingness as well as time frame based commitment to the

The impact of the Internet on the field of advertising Essay

The impact of the Internet on the field of advertising - Essay Example This work "The impact of the Internet on the field of advertising" outlines how the increasing usage of the Internet affected advertising industry and tools that it uses. Advertising through internet has made it possible for advertising agencies to measure the impact of their adverts on the potential viewers. This has been done through the development of methods of assessment based on measuring the number of times that individuals either visit a website or the number of clicks that have been made on a particular advert (Lee & Ahn, 2012). In this way, advertising agencies have come to have sound knowledge concerning not only the effectiveness, but also the means of developing improvement to adverts so that they can be more attractive to customers. Furthermore, internet advertising has made it possible for advertising agencies to only pay for those adverts that are performing. A method where payments are made based on the number of times that individuals click on an advert rather than on the impressions of the adverts themselves. This method of payment has attracted a large number of advertisers to the internet because they are able to have value for their money. Advertisers no longer have to worry about paying for nonperforming adverts because the internet has mechanisms to determine whether the adverts that they have posted are worth paying for or not, thus making the internet more efficient. The internet has had an impact on the manner through which investments are conducted by advertisers.

Eminent domain Essay Example | Topics and Well Written Essays - 250 words

Eminent domain - Essay Example The right of the government to seize private property, is for public utility propjets like hospitals, schools, government t office buildings, parks etc. To have just laws is fine. What is important is the interpretation of the law needs to be just and the end use of the acquired land needs to be for just purposes. The wise saying goes, that eternal vigilance is the price of liberty. The implementing authorities may try to abuse eminent domain, but it is for the community to resist such ill-boding moves. When the State Government delegates the power to their political subdivisions, such as cities and counties, the chances of misuse of eminent domain is real. The saving grace for the American citizen is, as the author points out, â€Å"Constitutional rights carry a moral and symbolic power not shared by statutory protections.†(7) According to the 5th Amendment, â€Å"No person shall†¦be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use without just compensation.†(16)Thus the American citizen is protected by the abuse of eminent domain as he gets th e fair market value of the property. The federal and state governments often delegate the power of eminent domain to private corporation that are engaged in quasi-government functions, such as railroad and utility companies and they can acquire property through the process of condemnation. But without the power of eminent domain, no government can initiate large-scale welfare measures and public utility projects. Even before the American Revolution, colonies used the powers of eminent domain for construction of roads and