Vodafone industry Essay Example | Topics and Well Written Essays - 1000 words

Vodafone industry - Essay Example This paper is an analysis of Vodafone products and services from the past and a comparison with the products and services it offers in the present scenario. Vodafone is a UK based company which started its operations in 1983. It was the start of telecommunication technologies. In the year 1985 Vodafone launched the first National Network in UK. This was first generation technology of the telecommunication sector in which mobiles were installed in cars and used car’s battery as energy sources. Vodafone was one of those who got the first movers advantage in this sector. Vodafone dealt with the challenges of 1G technology with the help of Global System for Mobile Communications (GSM) technology. It was a digital system. It launched its first GSM network in 1991. 2G technology enabled transmission of data along with voice over the mobile network whereas Wireless application protocol (WAP) made internet based services accessible with mobiles. Vodafone Group Plc is operating in more than 39 countries. It has a strong customer base of approximately 155 million customers. It has expanded its services from telecommunications to mobile har dware and internet communications. It has expanded itself with the changing communication requirements of its customers. Its efforts are directed towards meeting all kind personal or official communication needs of its customers. Mobile is always at the heart of what we do, but now we are moving into integrated mobile and PC communication services. We are doing that in two ways – wirelessly through 3G and HSDPA (High-Speed Download Packet Access), but also using fixed line broadband services like DSL (Digital Subscriber Line). (Vodafone.com, 2007) In the year 2001 it became the first in the world to offer 3G roaming calls to its customers between Japan and Spain. It introduced Short Messaging services in the same year which enabled customers to

Analysis of Ethnic Cleansing Research Paper Example | Topics and Well Written Essays - 1250 words

Analysis of Ethnic Cleansing - Research Paper Example The practice dates back in historical times and as old as the eleventh century. Just like modern populations, ancient communities also grappled with conflicts and wide-ranging social problems. The compelling urge for power is the main reason why respective communities engaged in gruesome practices such as ethnic cleansing. It is against this background that this paper reviews the various episodes of ethnic cleansing that occurred before as well as during the two World Wars. In addition, it explains the extent to which the nature of these World Wars contributed to the state of affairs. To ensure a harmonic consideration, it begins by defining the term ethnic cleansing. Ethnic cleansing is an all-encompassing term that is closely related to the concept of genocide. It refers to the removal from a certain territory a faction of a population through intimidation and violence (Thum, 2010). It is comprehensive and includes population transfer, forced migration and or deportation. In most i nstances, this occurs between neighboring communities and is geared towards ensuring the purity of a certain population. Historical evidence ascertains that it is a major cause of genocide that occurs on a wider scale. Comparatively, genocide tends to be more violent and has wide-ranging implications on both the perpetrating and affected community. Also worth noting is the fact that the relative negative implications are lasting and contribute significantly to future conflicts. As indicated earlier, ethnic cleansing is a historical occurrence that has its roots in ancient conflicts. According to Brubaker (1996), conflicts are a common characteristic of both current and historical populations. However, the complexity of conflicts and relative wars increased during the twentieth century. These further culminated in the first and second world wars. Notably, ethnic cleansing was a common occurrence during both instances. Thus apart from being one of the contributory factors, it can also be considered to have been a major product of the two world wars. There are various instances of ethnic cleansing that attest to the foregoing proposition. To begin with, between 1919 and 1920, there was an ethnic cleansing occurrence between the Bolshevik regime and Don Cossacks. This took place during the Russian civil war and its implications were immense. In particular, it saw a significant 500,000 Don Cossacks being deported within this short period of time (Merriman, 2010). Another episode of ethnic cleansing occurred in 1923 between the Greeks and Turkish. In this regard, there was a major population exchange between Turkey and Greece that can be defined as ethnic cleansing.     

IKEA: The Worlds Largest Furniture Retailer

IKEA: The Worlds Largest Furniture Retailer Introduction According to KeyNote, 2008, IKEA is the worlds largest furniture retailer. IKEA sells a lifestyle to its middle-class global consumers through cheap contemporary flat-packed designs. The Swedish based company has 237 stores around the world and it is the world leader in home furnishings (Mintel, 2006). IKEA is responsible for a global strategy that concentrates on cost management, efficiency and quality. However, there is much more to IKEA than just its cheap stylish furniture. As Eberhard-Harribey (2006) states, regardless of its openly aggressive focus on cutting costs, IKEA is a leading company when it comes to Corporate Social Responsibility (CSR) matters (see more on Appendix 1). IKEA has managed to combine a cost focus strategy with CSR issues as opposed to companies such as Starbucks and The Body Shop, which is considered to be high CSR-oriented but that charge a premium-price for its sustainable products. IKEA has respectable policies on child labour and has strong partnerships with UNICEF, and the WWF. Moreover, IKEA has a transnational strategy. The business maximise its global strategy of product standardisation whilst responding to, consumer local needs. Globalisation, factors like economic growth, deregulation, more disposable income and rising housing market have created many opportunities for growth in which IKEA have continuously taken advantage of in many countries. In spite of its global presence, it is worthy to point out two facts. First fact is that Europe accounts for 82% of IKEAs total revenues and North America accounts for 15% (Datamonitor, 2009). Second fact is that in both Europe and North America regions, as a result of the economic downturn the furniture retail industry is under a lot of competition. In order to reduce the political-economical and social-demographical risks inherent with such regions, IKEA needs to concentrate on diversifying its operations into other markets promptly and efficiently. Moreover, by expanding into other markets, IKEA can also take advantages of opportunities that these new markets offer that current markets no longer do. For example, in the past when China opened-up its policy to FDI, it eventually led to the Chinese economic improvement, the rise in the housing market and subsequently the demand for home furnishings in China. These events have unmistakable allowed IKEA to successfully enter this market. The current strategy mode that IKEA undertakes when entering a new market is International Franchising whereby products, limited rights, operating systems and the use of IKEAs brand name are sold to the foreign franchisee for a sum fee and share in the profits. It seems sensible therefore that IKEA continue on expanding into new markets. Nevertheless, before IKEA chooses another market to enter, IKEA needs to follow some steps: (1) Assess potential markets, (20 Evaluate the respective risks and benefits, (3) Choose the most appropriate market that not only match the Furniture Industry but ultimately complement IKEAs vision and Corporate Social Responsibility. In this work IKEAs plan will be to further its global expansion into the South American Market, having Brazil as a target. Brazil is the largest country in South America and according to Datamonitor (2009), it is characterises the most attractive country for the Furnishing Industry. The following analyses have as an aim to critically determine whether or not IKEA can successfully enter the Brazilian Market and how it should best endeavour such move Industry Overview: Global Home Furnishing Retail The home furnishings retail sector includes furniture, floor coverings and household textiles. Furniture sales dominate the global home furnishing retail sector, with 63.9% of the sectors value. IKEA has the largest share in the global home furnishing market. Its share accounts for 2.3% (MarketLine, 2009). Europe accounts for 43.1% of the retail sectors value and the compound annual growth rate of the sector in the period 2004-2008 was 2.6%. Moreover, according to Datamonitor, 2009, sectors value reached a value of $663.4 billion in 2008 and it is forecasted to grow by 24.9% in 2013 (MarketLine, 2009). Moreover, according to Mintel (2008) the UK is IKEAs most successful market. However is being held back by the difficulty of getting new stores, low consumer confidence due to the economic slowdown. The UK housing market has slowed dramatically and with house prices and the number of transactions forecast to fall this year, this must be bad news for furniture retailers. Already in 2008 there have been a number of casualties, including Sleep Depot and New Heights, and most recently Ilva and ScS. At the same time furniture retailers are facing unprecedented levels of competition from outside of the specialist market from the likes of Tesco, Asda, Woolworths, Argos, Homebase, BQ, and even Next and MS. Is it all doom and gloom for the furniture specialist? more  » The UK housing market has slowed dramatically and with house prices and the number of transactions forecast to fall, furniture retailers are facing exceptional amount of competition from outside of the specialist market from the likes of Asda, Argos, not to mention MS and Next. Five Forces Analysis Retailers of furniture, floor coverings and household textiles are the players of the home furnishing retail sector and the main buyers are taken as end-users, and manufacturers of furniture, floor coverings and household textiles as the key suppliers. (Table bellow adapted from Datamonitor, 2009) IKEA Swot Analysis IKEAs Corporate Social Responsibility According to Maon, Swaen and Lindgreen (2007) IKEA receives pressure from various external stakeholders. This pressure mainly exists because IKEAs business is modeled on cost leadership the majority of its raw materials are originated from developing countries. Since the end of the 1980s, IKEAs policies have been under constant scrutiny, particularly from NGOs. For example, IKEA was under the public eye over child labour in Asia, working conditions in Eastern Europe and Asia, and wood from questionable forests in Indonesia and Russia. Some critics argue that IKEAs sustainable practices took too long to be implemented and others question why the company do not place social and environmental labels on its products, even though the products meet criteria for products made of tropical wood materials. However, for IKEA, the brand itself should be a guarantee of environmental consideration and social responsibility Moreover, as a result of such pressures, the company is more actively involved in its CSR than ever. See next for examples of IKEAs current practices: (Source: IKEA Group, Panda.org, UNICEF and SaveTheChildren.com, 2009). Identification of a New Market Whereas the North American furniture and floor coverings market is currently going through difficult times, South American has kept strong growth in value, a trend that according to Marketline, 2009 is meant to carry on rising. As for 2010 IKEA will enter the South American market. The first IKEA store will be allocated in Santo Domingo, Dominican Republic (Reference?). However, as it is shown bellow there are other countries within South America in which IKEA could be successful. Furniture Floor Coverings in South America Industry Profile The South American furniture floor coverings market generated total revenues of $19,801.3 million in 2008, representing a compound annual growth rate (Datamonitor, 2009) of 7.5% for the period 2004-2008. Market Segmentation Living room furniture sales has proved the most lucrative for the South American furniture floor coverings market in 2008, generating total revenues of $7,420.1 million, equivalent to 37.5% of the markets overall value. Brazil (Marketline, 2009) however, Brazil leads the South American furniture and floor coverings market, accounting for 63.3% of the markets value. Factors Influencing the Likelihood of New Entrants and New Entrants in the Furniture Market in South America As shown above, there is a lack of brand strength in the Latin American furnishing market. This is turn shows that somewhat easy for new businesses to enter the market. Examples of such business however, are those well established diversified retailers, such as supermarkets and department stores entering the market. Advantages for retailers occur within the market on a small scale with either one or several outlets, for which fixed costs and entrance barriers are fairly low. However, the impact of the current global economic recession on the retail environment can discourage the entrance of new furniture businesses into the high-street in the medium term. There is however little government regulation which only concentrates on health and safety of the products. Overall, Datamonitor (2009) sees that the threat of new entrants to the furniture market in South America is considered to be strong. It is therefore important that establishes its presence in the region before other multinational companies decide to enter the South American. By being a entering such region, IKEA can be as successful as Telefonica has been since 1990 (Griffin and Pustay, 2009). It can generate more sources of revenue as well as establishing new customer base before competitors. There are a large number of different retailers of different sizes from small independent retailers to large chain-stores operating within the furniture and floor coverings retail market. Many players within the market are diversified retailers, such as department stores, supermarkets and DIY stores, which are not critically reliant upon furniture sales, which in turn ease rivalry. However, there are many small specialist stores, where the sale of furniture and floor coverings products is critical to success. These companies need to compete intensely with the supermarkets, which is becoming increasingly difficult in terms of price without compromising product quality; as the supermarkets can afford to make smaller margins over a wide range of products. The current economic downturn is adversely affecting retail sales, reducing growth potential and increasing exit barriers, which enhances rivalry. Overall, rivalry with respect to the furniture and floor coverings retail market is moderate. (Please refer to Appendix 2 for further analyses). Brazil The Brazilian economy was not affected by the global financial crisis as the countrys economy is tightly regulated with orthodox macroeconomic policies. The countrys growth rate increased in 2008 to reach 5.9%. Moreover, Brazil is the founder member of Mercosul regional integration which for instance, are responsible for 75% of South Americas GDP and it is the worlds fourth-biggest integrated market. The economic reforms, liberalized foreign investment to most sectors have been considered to be responsible for the current economic. The market of furniture in Brazil has three main segments: home (60%), office (25%) and institutional organisations (15%). Analyses show that (reference) this last segment is on the growth and imports should increase. This change in demand for foreign designs can certainly benefit IKEA in Brazil. The market is also restrained by high interest rates (18.3% per year in 2001) which prevent people from demanding bank loans, and thus maintain their purchasing power at lower levels than if they could borrow money easier. It then has a bad impact on house purchasing and in series, lowers the buying of house furnishings too. However, despite its high profile, Brazil still suffers from corruption. According to Transparency Internationals Corruption Perceptions Index for 2008, Brazil is ranked in the 80th place out of 179 countries. Because corruption is perceived to be very strong in Brazil, the majority of businesses are expected to encounter corruption when proposing contracts to governments. Moreover, deforestation caused by multi-nationals is making serious harms to the Brazilian rainforests. As the demand for environmentally friendly companies in Brazil and around the world continues to rise, companies such as IKEA can certainly expect to have its CSR scrutinised before receiving any license for operation. PESTLE Analysis of IKEA in Brazil Brazil has come out to be of the best market to invest (Griffin and Pustay, 2009) the economic reforms implemented after 2003 led to increases in real per capita income, and an improved income distribution. Real per capita income increased 14% from 2004 to 2007 and the inequality in the distribution of income, measured by the Gini coefficient (which ranges from 0, which reflects equality, to 1, which indicates inequality), diminished from 0.6 in 2000 to 0.5 in 2007. Although the political stability in Brazil does not have the same standard of security as other OECDs, the political stability in Brazil is improving steadily. Brazils president is considered to be more sensible than other South American leftist leaders. And Although Lula obviously seeks to protect national companies, He is also aware that many Brazilian businesses are not very efficient. After being re-elected, Lula has welcomed FDI in Brazil with open arms (Reference) Additionally, as the poverty situation in Brazil is still high, the Brazilian government and its population are in turn very active when it comes to social programs. There are major government programs that aim to tackle the problems of income inequality and access to credit. Programmes such as Zero Hunger (Projeto Fome Zero) provides low-income families conditional cash transfer bases reach nearly one quarter of Brazils population (MDS). Such programs can be seen as an opportunity for IKEA. Since IKEA has such renounced CSR programs in place, it can certainly work with partnership with the Brazilian government. Also, as more people are acquiring houses, the demand for furniture will eventually increase. With emerging markets capturing investors attention, many are turning their focus towards South American markets. Strong exports, high commodity prices and increased investments have been contributing factors to growth within many of the Latin American markets (Fleming, 2007). Amongst its neighbours, Brazil is the country that provides its population the highest average purchasing power (IMF, 2006) Thus, Brazil seem a very attractive market for IKEA, especially since the its furniture imports have experienced a growth of 16.27% during the third quarter of 2006. The imports of furniture in Brazil are controlled by the United States with 39% of the share, followed by Germany with 36% and Italy with 10% (ABIMOVEL, 2008). Because Brazils income gap between the rich people and the poor people is very high, The 10% richest people earn 50% of the totally income and the 10% poorest people only get less than 1% (source?) social status are very meaningful, especial for the middle-classes. As IKEA has been very proficient in selling lifestyles to its customers (KeyNote, 2008) the status importance amongst Brazilians could turn out to be advantageous for IKEA. Nevertheless, credit option is extremely limited among most consumers who are expected to pay for their goods in instalments. Very ofte, consumers opt for a certain product not because if its quality, but because of the payment facilities. Consumers can pay for a TV of the equivalent of  £300 in 10 instalments and without any added interest. IKEA should certainly be aware of consumers buying behaviour in order of to have problems with its liquidity ratios. As the telecommunication penetration rate in Brazil remains low, IKEA would not be able to rely in online sales in Brazil in the middle future and its online advertising should be very efficient . Laws requiring pre-sale disclosure by a franchisor are in place in Brazil Brazil shelters dense forests in northern regions including Amazon Basin that can be use for wooden furniture: half of the country is covered by forests. However, over the past couple of years, the government has been very cautious about global warming caused by MNCs deforestation. So IKEA would need to ensure the Brazilian government that its practices are very sustainable to be able to use Brazils endowments. IKEA in Brazil From the analysed above, it can be deducted that there are several attractive aspects for IKEA to invest in the area of furniture industry in the Brazilian market. First of all, the furniture market in Brazil is attractive due to a big value of imported furniture. Additionally, the labour cost is cheaper compared to Europe and America. Mode of Entry All IKEAs stores in foreign countries are managed under international franchising (IKEA, 2009). Franchising is a special form of licensing where the licensor authorises the licensee to utilize its operating systems, logos, brand names and trademarks in return for a loyalty payment (Griffin and Pustay, 2009). The franchisee needs also to supply capital, personnel, personal involvement and local market knowledge (Jeannet Hennessy, 2004, pp.296). As IKEA has so much experience in setting up franchise contracts, it seems sensible to apply the same when coming to Brazil for the following reasons: However, International Franchising has its drawbacks as well: Although the drawbacks of setting up Franchising in Brazil are not too high and IKEA could still be very successful in such a market. Based on the information gathered in this work, a relatively more complex but even more successful mode of entry can be recommended. Due to Brazils endowment factors and government economic stimulus package to attract new investments, IKEA can greater benefit from entering the market through Foreign Direct Investment via than from International Franchising. Moreover, by using FDI as a Strategy, IKEA can acquire national resources and access other South American markets. According to Dunnings Ecletic Theory (Griffin and Pustay, 2009), FDI will occur when three conditions Ownership, Location and Internalisation are satisfied. By matching IKEAs Swot analysis and all the other information gathered in this work, it is possible to observe that IKEA enjoys all three advantages in competing in Brazil against local firms. 1. Ownership: Whereas most of Brazilian furniture retails hold low brand image and average technology systems, IKEA has unique competitive advantages such as strong brand name globally, advanced technology and the benefits of economies of scale in other markets. 2. Location Advantage: IKEA can enjoy lower labour costs, avoid tariff walls on goods exported from Brazil to other South American countries and save money on product transportation instead of importing products from China, Russia and India, the majority of products can be manufactured in Brazil due to its vast resource endowments. 3. Internalisation Advantage: Because of growing concerns related to management of intellectual property rights, deforestation and corruption in Brazil, IKEA will benefit more from controlling its operations in Brazil than from hiring independent local companies to provide such services. FDI via Greenfield Strategy and Strategic Alliance As Brazilian Furniture Retailers are relatively small, the possibility to acquire an existing company with the intention of obtaining control over employees, technology and stores is very low. Therefore, IKEA would have to start its operations from scratch. According to Griffin and Pustay, 2010, when companies buy or build new facilities, hires in managers and employees to launch its brand new operations, they do so through Greenfield Strategy. Given all the facts that influence FDI in Brazil, the Greenfield Strategy can certainly benefit IKEAs entry to the Brazilian Market for the following reasons: IKEA can the location that best meets its needs It can build up-to-date facilities Brazils local and national government gives economic development incentives to attract companies facilities IKEA would not have to adapt its production systems to any Joint-ventures IKEA would not have to deal with problems associates with Property Rights that could arise from potential Franchisees/Licensees/ or Joint Venture partners. However, the Greenfield Strategy also has its disadvantages: The process of building a new site, hiring new staff and negotiating with government is relatively long and expensive In order to promote certain regions development, Brazilian government might require IKEA to build its site in a determined place that is not IKEAs desired location. Grant to use natural resources might be given under very restrict regulations due to global and national demand for sustainable products Furthermore, by using Brazils endowment resources, particularly in the Forestry sector, IKEAs CSR would be put under further scrutiny. However, as IKEA has so many projects that have been benefiting the forestry and the cotton sector (refer to IKEAs CSR) in so many countries IKEA can combine its current CSR practice and form a strategic alliance with the Brazilian government involving the production aspect of the business. According to Griffin and Pustay 2010, a strategic alliance involving public and private partners can benefit a company if negotiation is handled properly and if the government is relatively stable, by easing market entry, reducing risks, enhancing knowledge and expertise and giving competitive advantage. Appendix 1 Detailed Five Forces Analysis for the Global Retail Furniture Market (Adapted from Datamonitor, 2009). Appendix 2 Continuation of Five Forces Analysis on the South American Retail Furniture (Source: Datamonitor, 2009) Appendix 3

Why Toolbox Manufacturers Charge High Interest Rates and Mechanics Pay Them :: Finance Interest Mechanic Manufacturing

Why do Toolbox Manufacturers Charge High Interest Rates and Mechanics are willing to pay for them? The high interest rates of toolbox financing provide benefits for the manufacturing company and the mechanics. The company increases their net income and the mechanic receives financing, convenience and the name brand. We have all been there. We walk into the garage of our mechanic’s shop, taking a quick glance; we see the huge elaborate toolboxes that each mechanic owns. Most of them are from Mac, Matco or Snap-On. Unless you work in the tool industry most people do not realize what the real cost of each of these boxes is. The average toolbox costs a minimum of $4,500 and can run up to $9,500 for just one component of the set. The Big Three toolbox companies in the industry are Mac, Matco and Snap-on and all are using outrageous interest rates depending on state requirements. The rates vary from 6.25% all the way up to 22.50% in most states. So how much does that toolbox really cost if a mechanic makes weekly payment for the whole term of the contract? A $4,500 dollar contract as the principle balance at 22.50% interest while paying $32.71 a week for 208 weeks (4 years) will cost a total amount of $6,803.68. That is over $2,000.00 in interest. Looking at a $9,500 dollar contract at 22.50% interest while paying $69.06 a week for 208 weeks, will cost a total amount of $14,364.48. That is almost $5,000.00 in interest! Looking at this scenario from a company’s perspective, there has to be a point of competitiveness. Each manufacturer offers in-house financing for mechanics that are interested in buying their product. Due to many mechanics having little or damaged credit, the companies are taking a financial risk by financing them. Considering that for every 100 contracts the company buys 2 will default on the loan. There is a 2% chance of default on a loan. Each company buys 300 contracts on average per day, approximately 78,000 contracts annually which means that 1,500 will more than likely default. The rate of interest on the company’s part is determined by an estimate of how much money will be lost. If the interest income from these rates makes up approximately 35% of each company’s net income, then the total amount of interest income would be 37% from these contracts. 1 For the company, the benefit of bringing in a 35% net income outweighs the cost of a 2% loss of interest income. The other point of view, the mechanic’s, involves three solutions to this question.

Response to the book “The Body’s Memory” Essay

The recollection made by a person with disability or PWD of the most painful things which her body felt and experienced was explicitly depicted in the 1993 book of Jean Stewart entitled â€Å"The Body’s Memory. † The most notable aside from the clear presentation of the true condition and emotions of PWD, however, is the remarkable realization exemplified by the character. The character’s clear yet flexible and uncomplaining reminiscence of the pains and sacrifices of her body which was afflicted and removed with tumor was the ultimate significance of the book. This is because a PWD’s acceptance of the undeniable or irreversible state of her body strongly manifests that indeed the physical condition serves as the lasting reminder of disability. However, it is the will and the desire to overcome such disability which will ultimately allow a PWD to continue living. Stewart’s first appearance in the literary world showcased the character of a 30-year-old woman named Kate Meredith who recounted her body’s management and survival three years after a tumor was removed from her hip. Through the course of the recollection, Meredith’s body was faced with and most importantly reminded of its inevitable limitations resulting from the surgery which eventually made her a disabled person for the rest of her life (Stewart, 1989). The preface alone already hinted both the disposition and worth of this journal of one’s battle against her disability and ultimate triumph over the physical condition. As the journal went on, the author’s invitation led the readers into the painful yet struggling efforts of a lively and strong-willed English professor Meredith (Stewart, 1989). Through the words of the author, the readers came in contact and had a peek of the kind of life that Meredith has lived following her tumor removal. Stewart allowed the public to be acquainted with the people around Meredith, to feel and sympathize with her physical and emotional sufferings and above all, witness her understanding or acceptance and eventual rise above her permanent physical condition (Stewart, 1989). It is worthy to consider that the author has effectively presented the strong character of Meredith whose memory or precise account of her body’s pain caused by disability surprisingly paved the way for the meeting of two worlds, that of the normal people and persons with disability. In order to thoroughly feel the personal battle fought by Meredith, the author’s use of the journal type as the writing structure has succeeded for the character to vividly recall the pains suffered by her body. Additionally, the said literary form has efficiently conveyed the essence of the story, which is the acceptance of the body’s memory of disability suffering as well as the eventual realization of the existing disability and improvement towards the reality of living independently. The Meredith journal, as written by Stewart, is a concrete proof of a triumphant tale of a PWD whose body will definitely always remember the pain. However, she used such memory as a tool to overcome her limitation and started living on her own. The book is an ideal chronicle from the point of view of a previously normal person who was faced with the reality of never to walk once more. It is one of the best works that depicted a different perspective about the everyday happenings in the life of a person with disability. Utilizing the vehicle of journal writing, the author invited the readers to the world of a PWD and succeeded in making both her main character and the public experience all the emotional confusions, physical battle, disappointments, bravery, apprehension, self-pity and rejection. In doing so, Meredith’s eventual realization of herself and her new-found liberty has turned the book into a remarkable literary work. An ultimate response to the book is that it is a well recommended story for both normal people and persons with disability because of its generalized reminder that life has to continue beyond the event of a disability. Reference Stewart, J. (1989). The Body’s Memory. New York, NY: St. Martin’s Press.

Ace Hardware Store Entering Bahrain Market Essay

We have endeavoured to emphasize on the suggested strategies which will allow Ace Hardware to consider venturing into the Bahraini market. Therefore with the information provided and composed, we have the opportunity to examine comments of Ace Hardware which allows us to highlight key issues faced. Organisations need to recognize and meet demands of the exterior factors which include threats and opportunities to uphold their competitiveness in the market. Henceforth, the intention of this report is to essentially investigate and assess the outlook of Ace Hardware Corporation in relation to expansion and growth in the Bahraini market. . 0 Introduction Bahrain is one of the unique countries in the Middle East. It alone has a stable economic climate and welcomes foreign investment with a highly business friendly culture thus making it an efficient country to start business. Introducing Ace Hardware to the Bahraini market because of a numerous aspects such as retaining 100% foreign owner ship and low taxation, provides a free, open and transparent environment that fosters growth, legal system protects companies’ rights, while their free market environment allows businesses to thrive. . 0 Industry Business Description The ACE Hardware Corporation is a well-known wholesaler of hardware and home-related products; the organisation offerings include safety equipment, plumbing products, outdoor living products, pet supplies, door handles, electrical tools, lawn and garden accessories, furniture, home appliances and many more. ACE has been affianced in the wholesale hardware business and has offered dealerships to retailers of hardware and associated items since the company in Illinois commenced incorporating in 1927. Today, ACE is the largest retailer-owned obliging and vibrant leader in the convenience division of the hardware business in terms of wholesale and retail sales and strength of the brand. 3. 0 Company description According to (Irwin, 2012), Ace Hardware ranks highest in satisfying home improvement retail store customers for a sixth consecutive year according to the J. D. Power of Associates Home improvement Retail satisfaction Study of 2012. This measured customer satisfaction with home improvement retail stores, based on the performance of five factors: merchandise, price, sales staff, sales & promotions and store facility. The organisation emphasizes on service and modern retailing techniques and has helped locally owned operated ACE retail stores confront intense competition from Home Depot and Lowe’s. In addition, it provides numerous value-added services such as marketing, advertising, merchandising and design services to its retail members. ACE’s 4,600 stores in all 50 states and more than 60 countries generate annual retail sales of approximately $12 billion (ACE Hardware Corporation, 2012). 3. 1 Type of business Retail Sales ACE’s 4,600 stores in all 50 states and more than 60 countries generate annual retail sales of approximately $12 billion (Ace Hardware Corporation, 2012). Dubai, Shanghai, Canada etc. Applying a Teradata warehouse permitted 2,500 Ace Hardware retail stores to transmit daily a point of sale (POS) transaction detail. According to (Murphy, 2007), â€Å"Teradata is the world leader in data warehousing solutions with a proven track record in retail, as we discovered when we sought vendor references. That experience, including customer relationship management, category management and business intelligence, made Teradata the right choice for Ace Hardware. † Basically, Ace relies on active warehouse data from Teradata, which has delivered a single repository for retail and wholesale sales, purchasing, customer information, financial data and inventory to essentially support large varied workloads. Wholesale In addition to its 14 retail support centres in the United States and freight forwarding operations on the West Coast and East Coast, ACE features three international distribution centres in Dubai, Shanghai and Panama. The international distribution centres provide: 1. Easier access to core stock of leading brand products and certified ACE products through their global supply warehouse 2. Online ordering systems 3. In-market fully operational support offices. â€Å"It is very useful to have Ace as a partner for this type of market. It is nice to be able to replenish your inventory on a weekly basis, which makes it easier to control. Our goal is to be a one stop shop for everything in your home, and we can do that with Ace. The people in the community can buy the Ace brand with confidence because it’s proven to be a good quality product. Jorge Ossa  Commercial Manager, Cemaco – Guatemala (ACE Hardware Corporation, 2012). ACE has established an accurate and demonstrated operating model for effective and efficient distribution allowing ACE Hardware retailers the wholesale benefit they require to be successful and profitable. Below are the some of the wholesale advantages available for ACE Hardware store owners:- * Lowest cost of goods * Named #1 Distributor according to Home Channel News in 2009, 2010 and 2011. (Home Channel News, August 2011) * #1 in wholesale sales at $3. 5 billion (Hardware Retailing, December 2010 ) * The combined buying power of over 4,100 locations To support the growing number of international ACE retailers and leverage international wholesale opportunities, ACE opened the Ace Global Distribution (ASG) warehouse in Shanghai, China 2006 (ACE Hardware, 2012). 3. 2 Legal Structure Each Ace Hardware store is individually owned and operated by local entrepreneurs – hard-working, passionate business owners who are involved with and, many times, exist in the communities where their stores are based (Ace Hardware Corporation, 2012). . 3 History ACE Hardware organisation was founded when Richard Hesse, Frank Burke, Oscar Fisher, E. Gunnard Linquist, William Stauber unified to form a purchasing and advertising enterprise among their Chicago- area hardware stores. Moreover, their combined buying power allowed the store owners to negotiate lower prices on merchandise acquired from wholesalers. Therefore, embracing the ACE name in 1927 and incorporated the succeeding year. Frank Burke served as president of the group and was succeeded by Richard Hesse in 1930. Over the next two years the firm progressed into a hardware organisation, obtaining directly from producers and storing merchandise in its own warehouse in Chicago. This strategy allowed ACE to further reduce costs by removing ‘middlemen’ wholesalers (Anonymous, 2012). Moreover, during its first half-century of operation, ACE was basically a conformist wholesale group, and its profits were distributed equally among shareholders. The company’s low-cost purchasing and distribution procedures quickly enticed new employees and franchisees. By the mid – 1930’s, the organisation had 41 members and sales of more than $650,000. Throughout history, ACE has accomplished to solidify their position as one of the strongest and leading competitors in the hardware industry. 3. 3. 1 Mission The mission of the ACE team is to ensure that their customers are satisfied. According to (Anonymous, 2012), â€Å"When something goes other than the way it was planned, we do everything in our power to make it right. You have the ACE promise on that†. In relation to corporate social responsibility (CSR), ACE Hardware has partnered with the CMN hospitals to give back to communities. The ACE Foundation has raised over $50 million since 1991 to help sick and needy children through partnerships with Children’s Miracle Network (CMN) hospitals. ACE also supports the American Red Cross Natural Disaster Relief Fund through donations of work gloves, shovels, mops, bottled water and more (ACE Hardware Corporation, 2012). Once again, ACE is proud to serve as a sponsor of the Champions program. The retail stores and ACE foundation organise a myriad of fundraising initiatives, many of which our generous customers are welcome to get involved. Furthermore, these fun and unique experiences raise much-needed funds that essentially result in the power to change lives and treat sick children at the Children’s Miracle Network Hospitals around the United States. Miracle Jeans Weeks is a program where employees throughout the company wear jeans during the company’s five designated Miracle Jeans Weeks each year. Furthermore, with a cost of $1 per day and almost 900 people on campus, it’s never in doubt that thousands of dollars are raised yearly from this enterprise. 3. 3. 2 Goals & Objectives One of ACE’s goals is customer satisfaction as they value their customers. â€Å"We know our customers want to be spoken to in a more personal manner, rather than in a blast† says Rich Neal who is ACE’s one-to-one manager. â€Å"So we have robust analytics team, and follow-up purchases with thank-you emails and direct mail, broken down into eight categories, including grilling and lawn and garden† (Mahoney, 2011). Therefore, for ACE Hardware customer satisfaction isn’t just an idea, it’s basically the entire purpose. According to (Marketing charts staff, 2011), J. D Power and Associates (2011) U. S Home Improvement Retailer Satisfaction Study, Ace Hardware ranks highest in satisfying home improvement retail store consumers, accomplishing a score of 786 on a 1,000-point scale, for the fifth consecutive year.. The study, now in its fifth year, measures customer satisfaction with home improvement retail stores which is built on the overall performance on five aspects: staff and service; store facility (including merchandise and cleanliness); merchandise (product information details); price; sales and promotions. 3. 4 Company Structure Ace’s Board of Directors establishes guidelines for Ace management. There are between nine to 12 director positions. Ray Griffith assumes the role of president and CEO and David Ziegler as the chairman of the board. 4. 0 Ace Product analysis: Ace hardware store offers an extensive range of more than 30,000 quality household products from kitchen mops to garden furniture and camping equipment. Ace’s product range consists of the everyday items such as sponges and shower curtains as well as occasional purchases such as wall paints and lawnmowers. Ace’s Products are categorized into: Outdoor Lifestyle: Ace has a wide range of outdoor lifestyle products to suit distinct tastes and needs -Outdoor furniture -Camping -Barbeque -Pools and spas -Outdoor constructions Gardening: a stimulating selection to meet outdoor gardening needs. -Gardening tools -Seeds -Indoor/outdoor plants -Pots and vases -Watering -Fertilizers and chemicals -Landscaping -Fencing and edging -Water features -Garden decor -Garden lighting -Shades and turf DIY: With the widest product range, competitive prices and informed staff, ACE is the choice for D. I. Y. enthusiasts. All ACE stores offer a wide selection of Tools, components and essentials for DIY as well as the biggest range of world renowned brands in power tools. ACE also provides free advice and solutions on any hardware or D. I. Y problem as well as free repairs on power tools under warranty. -Power tools -Hand tools -Hardware -Fastenings and fixings -Tool Storage -Timber -Electrical -Security Equipment -Safety Automotive: Ace has a wide range of quality automotive products. From accessories, cleaning and car care products, sunshades, 4X4 accessories and emergency kits to enhance the looks and performance of your vehicle. 4Ãâ€"4 adventure -Car Cleaning and Maintenance -Car Interior -Emergency and Safety Painting and Decorating: Ace offers more than 16,000 colors of paints; customers also can mix their own colors to come up with their ideal paint pallet. Ace provides all the necessities needed to complete the process of decorating homes. -Paints -Paint Equipment -Adhesive and fillers -Wall c overing -Arts, crafts and hobbies Home ware: ACE home ware has a complete range of lifestyle accessories all under one roof. -Cleaning, Laundry -Storage, Packaging -Living -Bed and Bath -Kitchen -Electrical -Wellness Pet Care: ACE offers a range of pet supplies and related pet products and accessories catering to dogs, cats, birds and fish. Ranges vary from pet food, toys and other essential pet care accessories. Services: Rental service: The Ace Rental Place offers a wide variety of equipment for rent on a daily, weekly or even monthly basis, great for items required for few usages or simply to try them out before deciding on the purchase. All rental items are well maintained with expert customer service. Customers can rent the following items:- †¢4 Burner Gas Barbeque †¢Upholstery/Carpet Cleaner †¢Generator †¢High Pressure Cleaner †¢Port-a-cool Ladder 16ft Multi-master In store services: -Assembly – Installation/key cutting -Automotive chip key cutting- Pipe Cutting and Threading -Blade sharpening – Screen Repair -Computerized paint – color matching- Small Engine Repair -Delivery- Special Order Services -Glass and acrylic sheet cutting -Glass repair -In store lock servicing 4. 1 Customer profile/demand analysis: Aces vast range of products and services encourages a diverse range of customers with different needs and wants. Hardware stores in general often prioritize their target market as home owners as the products they offer are mostly for household use. Ace is more than just a hardware store that just sells tools for men, it’s a superstore that attracts both men and women who are making decisions in the appearance and upholding of their homes. Loyal customers As part of a customer retention strategy the Ace marketers have focused their attention on customer insights, by creating a card-based loyalty club – the Helpful Hardware Club (HHC) customers at the store can sign up to the program making them eligible purchase discounts and special offers. Ace targeted the Lifestyle segment to boost their retention program causing evenues to rise 5. 4 percent as lapsed customers were enticed by discounts to return to their local Ace stores. (Nielsen 2009) Aces product portfolio also consists of outdoor leisure activities targeting consumers that are not necessarily home owners or prime decision maker with the household. Products for occasions such as camping or barbequing target a segment of active leisure consumers. This segment broadens ACEs target market outside home owners. The demand is not only in home improvement products but also in the items needed to care for them. This demand has forced manufacturers to introduce a large range of new cleaning products which targets upscale shoppers who desire convenience and a more natural, non-toxic product. Current market Bahrain is regionally known for its cosmopolitan lifestyle suggesting sophisticated consumers, with their relatively high purchasing power these consumers have a high willingness to spend especially on premium products and brands. 4. 2 Competitive situation: (Ellen 2010) Ace Hardware Corp the largest retailer-owned cooperative in the hardware industry by sales and the second largest dealer-owned cooperative in the United States. Ace’s innovation is what led them to establish the strong position they hold today. With over 4,000 stores in 60 different countries ACE hardware were ranked 8th in franchise directs top 100 global franchise’s (Francise Direct 2012). Ace hardware store faces intense competition within the United States. The US home center, hardware store and home improvement retail industry includes about 23,000 hardware stores and home centers with combined annual revenue of about $150 billion. The home center segment of the industry is highly concentrated: the top four companies account for more than 90 percent of segment revenue (Hoovers 2012) The success of individual companies depends highly on competing low-cost purchasing, effective merchandising, and competitive pricing. The top three competitors of ACE are:- †¢Lowe’s Companies Inc. †¢The Home Depot Inc. †¢Do it Best Corp Despite the intense competition in their domestic market, ACE has an opportunity in Bahrain as the Hardware store industry is not as well developed leaving space for entry in to the market. However, there will of course still be some Potential Competitors in Bahrain that Ace will have to face:- Ace’s direct competitor in Bahrain will be Manazel Hardware store; Manazel first opened its doors in October 1995 at Salmabad, Bahrain. It is a family owned business based in Bahrain. Carrying more than 50,000 products ranging in over 20 categories, some of which include: Furniture, Home ware, Hardware, Bathroom ;amp; Plumbing accessories, paint and Sundries, Outdoor Living, Garden Furniture and Accessories. Their Materials are sourced from all around the world to provide everything for your home and garden. Manazel 2012) Ace could initially face challenges competing with Manazel due to it being a locally based company, depending on the loyalty of their consumers it could be difficult in convincing them to switch to ACE. Ace has the advantage of being a well-established global brand and with the high rate of expatriates in Bahrain they may naturally prefer to switch to a m ore recognized brand. Ace will also face competition amongst the small local hardware and tool stores. These stores are popular amongst price sensitive customers. 5. 0 Environmental factors 5. 1 Host Country Business Climate: Bahrain offers very distinctive traits in the Middle East. It enjoys a stable economy climate and competitive costs. It has an amazingly business friendly climate which is an attraction for ACE and other companies to do business in this country, it has an excellent regulatory framework, and supportive government policy (Najjar 2011) The Host country for ACE Hardware is Bahrain, Bahrain is an Arab country with a total land Area of 712 square kilometres, a population of about 1,234,571 (end of 2012), out of which 666,172 are locals, according to the central bank of Bahrain. The main towns in Bahrain are Manama and Musharraq, the climate is mainly very hot and humid, language is mainly Arabic, but English is widely spoken. The metric systems used include 1dhara=48. 26 cm, 1 rafa=254 kg, the currency is the Bahraini Dinar (BD) = 2. 65 USD, the Time is 3 hours ahead GMT (Bahrain: Basic Data 2012). Bahrain is an Arab country and has the monarchy system, the ruler, king Hamad bin Isa al-Khalifa is expected to be secure for some ime to come; the Al-Khalifa family has control over most of the executive branches of government and legislature remaining weak. There will however always be primary tension over economic and financial inequalities, with the halting pace of political liberalisation of sectarian discrimination. Real GDP growth for Bahrain was expected to slow down to 3. 1% in 2009, as mainly international demand for Bahrain exports is weakening, but was expected to recover to 3. % in 2010 (Bahrain economy, 2009), and is expected to rise up to 4-5% in 2 012 due to increases in crude oil production, manufacturing and government spending according to the Economic Development Board (EDB) (Andy 2012). Bahrain’s business climate in 2007 attracted almost $1 billion worth of investments in new projects in 2007 as reported by Dr Hassan Fakhro minister of Industry and Commerce, He also went ahead to mention that new investments in the new projects were worth 373. 3m Bahraini currency, which is about $987. 6 million and these new projects also created about 13, 536 jobs in the country (Middle East Financial News 2008). Oil production output from Bahrain’s single aground field is in decline however, and the monarchy government is aware of the country’s vulnerability to changes in oil prices globally, with oil being the major source of government revenue for the country accounting to more than 70% of the economy. The economy of the country also relies heavily on goodwill received from Saudi Arabia, which runs a large offshore oil field whose production it shares with Bahrain. All these limited resources has made Bahraini government to have the strategy of diversification in order to prosper, increase the role of the private sector and provide a welcoming environment for foreign investment. FIGURE 1. 0: BAHRAINI GDP 2001-2012 BAHRAINGDP GROWTH 2001-2012 200120022003200420052006200720082009201020112012 4. 6%5. 2%7. 2%5. 6%7. 9%6. 7%8. 4%6. 3%3. 1%4. 5%1. 8%2% SOURCE: global finance: Bahrain Country Report 5. 2 SWOT ANALYSIS: Strengths; ACE hardware is a strong brand both across the USA and the world stage, with more and more expansion into the global markets into several countries across all the continents of the world. ACE has the resources and ability to pursue growth in multiple directions, with the ACE leadership team making a smart decision of focusing on their paint production, which has made them gain a huge customer base and customer loyalty (Bueno 2012). In 2010 ACE hardware has generated in excess of $3. 45 billion in wholesale and retailers enjoyed the added bonus of collective buying power at this volume by getting a decreased cost in goods, which has built the basic foundation for a more profitable option (ACE 2011). ACE produces many DIY products and many changes have taken place in this market over the last 85 years, ACE ownership however still remains the on top in customer satisfaction according to Business week and was ranked â€Å"highest in customer satisfaction Among home improvement stores four years in a row† (JD power and Associates) ACE hardware also enjoys major success in the market share with the help of top of the range advertisement and reduced goods cost, it has slowly established itself to be a major player in the global market for hardware products. ACE also expanding its wings to get a piece of the business boom, and with the advantage of an established brand name, it will be relatively easy to penetrate under developed markets as more businesses would want a merger with them as opposed to its rival companies. ACE is a sophisticate and established brand worldwide, and has adopted the new technologies as they come which has giving the company a competitive advantage as they are more organised and technologically more advanced, which has led to reduction in production costs for the company. The expansion of ACE into the global market has seen it gain market share, more so than their competitors such as Home Depot, Lowe’s etc. Weaknesses; ACE hardware has relatively small stores, compared to their rival companies like Lowe’s, Home Depot and Menards on selection ACE Hardware in 2008 reported a net income of $10. 8 million for the first quarter of 2008, which was a decrease as compared to 2007 when they reported $14. 1 million which was a $3. 3 million decrease. The company also reported earning s before interests and taxes of $13. million in the first quarter of 2008 as compared to $29. 2 million in the first quarter of 2007 (9) ACE hardware has encountered losses resulting from physical damage to breakdown of its computers in the European market, which has led to replace damaged computer hardware, the reinstatement of lost programs or Data and also had to increase working costs as a result of the problems (10). Opportunities Bahrain’s financial freed om ranking is 77. 7, making its economic system the Tenth freest in this year’s Catalog (2012). Its overall ranking is 1. 4 points higher than last year, with upgrades in trade freedom; investment freedom, work freedom, and freedom from data file crime error. Bahrain is rated 1st out of 17 nations in the Centre East/North African-American area, and its financial freedom ranking is well above the world average (Bahraini economic development Board, 2012) from the perspective of Ace this reduces business constraints giving them the freedom to commercialize their brand and reduces limitations on investment. Situated near commercial establishments in the Gulf with a causeway relationship with Saudi Arabia and the rest of the GCC, Bahrain is seen as a gateway to the Gulf, an industry of over 100 thousand individuals. Bahrain’s variety and openness keeps presenting opportunities for exporters. It has the most varied economic system in the Gulf Bahrain does not currently have a competitive hardware industry with only a few entrants and one major Hardware store giving ACE the flexibility to enter and the means to operate however they choose. The hardware market ACE is involved in is a highly competitive market, it takes a lot of marketing research by ACE and expensive research and new technological adaptations for the company to stay ahead of competition, couple with the reduced purchasing power of consumers due to economic downturns globally have been detrimental to business for ACE. Threats The law requires that you have a local partner who maintains most majority interest and can therefore manage the company and can close it anytime he wishes. The local partner, be it an organization or an individual, does not need to give rise to the start-up financial commitment or take part financially at all. (Bahrain, 2010). This could mean lack of security for ACE as there is the chance of being closed down with no warning or notice. The changes in labor Laws and regulations constantly by the US and other countries have been detrimental to their expansion, other domestic and international factors also have to be considered by ACE before entering into any market in any country, such as culture, corporate social responsibility obligations are all external factors that ACE has to consider. The process of opening a business in Bahrain is complicated and economically dangerous, significance that local information is essential. You must also seek advice from a good attorney from the beginning. A knowledgeable attorney will provide information to you through the signing up complications and his help will be important in defending your interests. This is applicable whether you are starting a moderate shop or a big enterprise (Bahrain 2010) The current Political unrest in Bahrain creates an unpredictable business environment. If the unrest becomes worse this could have major effects on Ace’s business activities in the region, currency fluctuations and could see reductions in the amount of expatriates present in Bahrain causing Ace to lose a large part of their target market. 5. 3 Government constraints in Bahrain Economic growth The economic growth is for Bahrain is likely to slow down in Bahrain; it went down to 3. 3% in 2010 as regional growth in the country as government finances are getting squeezed. Local consumption of private homes and offices is expected to slow sharply, with no a real positive growth in the employment sector. However government consumption growth in Bahrain is forecasted to also slow down. For ACE however the major demeaning factor of business entry into Bahrain would be the limited fiscal constraints in the country, as well as the subdued outlook for global direct investments flows. And the demand for exports and of goods and services is also forecasted to decline, ACE might have a hard time penetrating into the Bahraini market (Ace Hardware 2008). Economic policy An advantage for ACE going into the Bahraini market is the countries determination to move away from the oil sector. The government is determined to stimulate the private sector growth and foreign investments, and address high unemployment problems (Bahrain News Agency 2012) this would be an advantage to ACE as the government will give them an advantage of being accepted into the country without many business constraints. They can be assured of government support which is a large determinant of business success or failure for any business going into another country. Inflation and the exchange rate Consumer price inflation is expected to moderate in the coming years because of slower domestic demand growth. But with a relatively strong currency against the Euro and the Dollar inflation is expected to slow down an average of 1. 8% in 2009-2010. The Bahraini government is intending to enter into a currency agreement with Saudi Arabia, Kuwait and Qatar, and with the UAE, which has pulled out though, and the government and the central bank of Bahrain is expected to maintain the dinar’s value and peg it at the rate of BD0. 67=$1 that has been in place for 3 decades (Bahrain News Agency, 2012). Setting up a business in Bahrain For ACE hardware it would be good news for them to know that Bahrain is ranked first in the Economic freedom index in the Middle East and North Africa (MENA) region, and is seventh overall globally according to the Fraser institute Report 2012. The report by Fraser classifies these countries by using themes such as governm ent volumes, legal system, and intellectual property rights security, accessibility to sound funds, freedom of international trade and organization credit, manpower and companies. All these factors are important criteria to be considered by ACE before going into business in Bahrain. 5. 4 PEST ANALYSIS Political Legal Environmental Laws Bahrain has set up a strict law on polluters as fines of up to $133,000 are issues under Bahrain’s new environmental protection law, this is the first law of it ‘s kind related to anti-pollution in the Persian Gulf state. This law covers everything from car emissions, noise and workplace pollution, as well as handling and disposing of hazardous waste materials and chemicals. This is in accordance with what ACE has to achieve to be successful in Bahrain by practicing Corporate Social responsibility (CRS) to maintain the environment in Bahrain or risk serious government and legal issues (Pittsburgh Post, 1996) Stability of the Government Bahrain has entered into an era of instability due to a combination of the Arab spring recently, longstanding local grievances, the competition of regional powers and other external forces. The solution to this problems can be dialogue between the ruling Al-Khalifa Family and all opposition parties. The crisis has however slowed down in recent times with more and more dialogue and compromises being reached between both parties (Bahrain’s Quest for Stability 2012). Economic GEP growth in Bahrain In 2004 the Bahraini GDP has been reported by the ministry of commerce to have grown by 5. 2% from the previous year, this has been largely due to increase in foreign direct investment flow (Middle East 2004) and has been growing ever since with a reported GDP of 2. 1% increase in 2012. Currency The Bahraini currency is the Dinar and at 0. 67 Dinar to a US Dollar it is one of the strongest currencies when it comes to exchange in the World. Consumer price inflation is expected to moderate in the coming years because of slower domestic demand growth. This for ACE can only mean good news as it will be a positive currency to work with and no inflation worries that have to be considered by ACE. Social Population distribution in Bahrain The Bahraini age distribution has been as of the ye ar 2010 the kingdom was 1,234,571, part of which 568,399 were locals and the other 666, 172 were non Bahrainis. This from 2001 the population was 650, 604, this is an increase of 89. %. However, the population of the locals has decreased from 2001 to 2010 reaching 46% from the previous 62% in 2001. The proportion of the population of Bahrainis in the total population during the period from 2001 to 2010 decreased, reaching 46% in 2010; while the corresponding figure in 2001 was 62%. The percentage of non-Bahrainis increased 54% in 2010 while it was 38% in 2001 (Census, 2010). This shows an increased number of expats coming into the country which will mean for ACE that products should not only be made to suit the local citizens but the majority foreigners, which means overall business strategy has to change. Religion and Language: The official language in Bahrain is Arabic; however English is widely spoken mainly in business meetings and other social interactions. The non-Bahraini in the country mainly speak Farsi an Iranian language, or Urdu which is a Pakistani language. The main religion in Bahrain is Islam, which is the 2nd largest religion in the world, Muslims in fast for a month every year in the month of Ramadan. The Bahrainis though make use of both the Islamic and western calendar but mainly use the western calendar for business operations. Business meeting etiquette Appointments are necessary, morning meetings are preferred. However meetings are not advised during the months of August and July because most Bahrainis travel out the country when the heat is at its worst. , they are quite time conscious, so arrive at meetings on time. Personal topics should generally be avoided unless the relationship has developed or there is need to discuss matters confidentially. Bahrainis usually have an open door policy, so meetings do get interruptions. Business meetings also start after a long talk about health, family etc. Business Negotiation Etiquette The building of trust is important since trust is required in order to conduct business. Bahrainis are very time conscious and time driven, the actual meeting is more important than the timeliness or outcome. Bahraini organizations are hierarchal, the highest ranking employee or worker reaches decision. Decisions are top down and lower level employees usually have no say. Decisions take a lot of time; if you try to rush it will be perceived as rude and disrespectful. Technological The economic system in Bahrain relies upon intensely on innovative petrochemical technology, and many Bahrainis have had or are getting specialized training at several universities all over the country. Technology is just coming up in Bahrain with many projects being undertaken in recent times, but perhaps the most important is the Bahrain Green Tech EXPO which is dedicated to the green consumer products. Due to the high demand for environmental protection globally, Bahrain has taken this as the only business to business trade show focused specifically on ECO friendly consumer products. 6. 0 Business Strategies 6. 1 Product /service positioning Positioning is what the customer believes about your product’s value, feature, and benefits, it is a comparison to the other available alternatives offered by the competition (Jackson, 2012). Some basic strategies include:- By attribute or benefit This is the most frequently used strategy in positioning. In this case, Ace hardware’s products are mostly house used products, and the benefits they can give to the customers are the after service, and the quality. The after service they give is mostly repairing, assembling and delivery. Level of service and quality of a product offering are the main influences of developing a strong brand image. By user Customers often choose brands that identify with their own self-image. Ace should position itself to suit the image of the end user. Therefore ace should focus on the wants and needs of their target audience and how they perceive themselves and the brand. By competitor Competition wouldn’t be much of an issue for Ace since they would be entering a market that is not fully developed in Bahrain with few competitors. But they should remain aware of new entrants which are always a possibility and they need to be aware of the changes that may occur. By price or quality Price and quality are directly related in minds of consumers, People are willing to pay premium prices for premium brands that are have high quality. It is very important for Ace to identify where they want to be placed on the pricing matrix shown in figure 1. Ace product offerings vary in brands therefore prices will also vary depending on brand and quality. 6. 2 Pricing strategy Because of Ace’s diverse product range of brands they would need to use more than one pricing strategy. Using the pricing matrix above ace could use this as a guidance to set appropriate pricing strategies. Premium Pricing: One pricing strategy suitable for Aces different brands is premium pricing. Certain brands offered by Ace are luxurious brands with high quality and high price. It is clear on the matrix for these products Ace should use premium pricing which allocates high prices to those brands Economy Pricing: Ace also offers products at more affordable prices however they may have lower quality then premium brands. These types of products attracts customers that are not willing to spend excess amounts of money and would rather spend less for less quality Competitive Pricing: ACE could also use competitive pricing strategy to set benchmarks on their own prices. This strategy is most effective when there are limited competitors in the market which is the case for ACE and Manazel. Ace has a clear advantage over Manazel as it is a globally established company enabling them to set their prices slightly higher than Manazels. Estimated Selling Price: The estimated selling price for ACE hardware products in Bahrain would have to be set under consideration of several factors, such as the GDP of the country, the purchasing power of the country, the competitor prices and the strength of the Bahraini currency The GDP is the value of all final goods and services produced within a nation over a period of a given year. The Gross domestic products (GDP) of Bahrain is the lowest in the Middle East with a reported $32 billion in 2011, however when it comes to consumer purchasing power of Bahrain, it is ranked fifth in the Middle East with a reported $27,900 in 2011. ACE can base it’s pricing on this and compare to its most similar market which is the UAE which is ranked second on the purchasing power list in the Middle East with $48,800 in 2011 (Index mundi, 2012) The Bahraini currency is a major factor for setting prices, comparing to the UAE market which is the closest to Bahrain both geographically and economically 1 Bahraini Dinar = AED 9. 7 so prices can be higher for the Bahraini market considering the difference in currency strength. Bahrainis live a very cosmopolitan lifestyle and would be prepared to buy from expensive and established brands (Numbeo, 2012), which will mean ACE, shouldn’t face many issues setting medium to high prices in Bahrain. But for the large number of expat s in Bahrain ACE has to adapt itself due to the target market it has set for itself when setting prices. Expats are genuinely not price sensitive when it comes to purchasing from known global brands as they find it easier to trust brands they are familiar with. The most important factor however is comparison of process with its main competitor in Bahrain which is Manazel; this company has built its reputation in Bahrain as one of the best Hardware stores and offers discounts and promotional vouchers to loyal customers (Manazel, 2012) which will mean stiff competition for prices for ACE. However, due to lack of information on actual goods prices for Manazel, ACE can do further research and sets it prices on information found. 6. Distribution and logistics Ace products will be available to customers through two sources: Retail sales: as many of its branches worldwide also provide retail shops, similar shops should also be provided in Bahrain in different major cities, to make the products more accessible to customers in more varieties, and as shopping is part of the Bahrainis past time this will be a major attributor to its overall sales. It will also increase overall brand popularity of ACE in Bahrain. Online store catalogue: ACE provides this service for many of its branches in different countries worldwide, but as internet commerce is not popular in Bahraini ACE should not expect major traffic on these online websites. Ace currently has distribution centers located in various parts of the world to enable more efficiency for their global stores at different pin-points. This way transport costs can be cut as well as time on delivering inventory. The closest distribution center to Bahrain is currently in UAE being operated by the Al Futtaim group. Ace can extend their current agreement with Al Futtaim for them to deliver across to Bahrain and take care of their inventory as well as the UAE. 6. 4 Promotion and Advertising Promotion ACE’s competitor in Bahrain Manazel offers various promotional vouchers and discounts to its customers, should be a model ACE will focus on that will help it gain more popularity with customers. Coupons, discount vouchers, loyalty cards should all be included as promotional tools by ACE and all promotional activity should reflect the goal ACE wants to be perceived as which is ‘the helpful store†. Advertising The most important part of marketing for any product is advertising, there are several tools ACE could you to get its name out in Bahrain which include, word of mouth, billboards on (major signs, buses etc. ) radio adverts, Television and much more. Due to culture and market similarities with the UAE ACE could use existing ads in Bahrain to cut costs in advertising research. 6. 5 Estimated sales/sales mix A sales mix is the specific sales of each product offered by a company in comparison to total product sales. Businesses commonly track this information to figure out exactly how much profit they make or can make when marketing a range of items or services. The sales mix of products will often impact an organization’s bottom line. 6. 6 Production/service strategies Production or operations strategy refers to the pattern of decisions or course of action that the organization takes to produce goods and services. The production strategy shows the direction the production or operations function of an enterprise should take. It has important consequences for the way production resources are selected, deployed and managed (Sarkissian. 2012). 7. Financial Planning â€Å"Financial planning is the process of meeting your life dreams/goals through the proper management of your finance† (Beniwal, 2010). This allows the usage of several financial tools such as Profit and Loss Statements, Cash Flow Projection and Financial Analysis to basically achieve financial objectives. 7. 1 Profit and Loss Statement Below is the Condensed Consolidated Statements of Income (Unaudited) for the three and nine months ended September 29, 2012 and October 1, 2011. ACE HARDWARE CORPORATION| | | | | | | | CONDENSED CONSOLIDATED STATEMENTS OF INCOME| | | | | | | (Unaudited, in millions)| | | | | | | | | | Three Months Ended| | | Nine Months Ended| | | September 29,| | October 1,| | September 29,| | October 1,| | | | 2012| | | 2011| | | 2012| | | 2011| | | (13 Weeks)| | (13 Weeks)| | (39 Weeks)| | (39 Weeks)| | Revenues| $| 949. 9| $| 912. 0| $| 2,929. 0| $| 2,787. 5| | | | | | | | | | | | Cost of revenues| | 826. 1| | | 797. 6| | | 2,564. 3| | | 2,449. 3| | | | | | | | | | | | | | | Gross profit| | 123. 8| | | 114. 4| | | 364. 7| | | 338. 2| | Distribution operations expenses| | 25. 1| | | 26. 2| | | 74. 4| | | 70. 7| | | | | | | | | | | | | | | Selling, general and administrative expenses| | 35. | | | 36. 2| | | 104. 5| | | 104. 3| | | | | | | | | | | | | | | Retail success and developme nt expenses| | 26. 2| | | 27. 6| | | 91. 5| | | 84. 1| | | | | | | | | | | | | | | Total operating expenses| | 86. 8| | | 90. 0| | | 270. 4| | | 259. 1| | Operating income| | 37. 0| | | 24. 4| | | 94. 3| | | 79. 1| | | | | | | | | | | | | | | Interest expense| | (4. 2)| | | (8. 9)| | | (20. 2)| | | (27. 8)| | | | | | | | | | | | | | | Loss on early extinguishment of debt| | -| | | -| | | (19. 9)| | | -| | | | | | | | | | | | | | | Interest income| | 1. 0| | | 1. 5| | | 2. | | | 3. 8| | | | | | | | | | | | | | | Other income, net| | 1. 7| | | 1. 5| | | 5. 0| | | 6. 1| | | | | | | | | | | | | | | Income tax expense| | (0. 9)| | | (1. 4)| | | (2. 4)| | | (2. 4)| | | | | | | | | | | | | | | Net income| | 34. 6| | | 17. 1| | | 59. 7| | | 58. 8| | Less: net income attributable to non-controlling interests| | 0. 3| | | 0. 1| | | 0. 3| | | 0. 3| | | | | | | | | | | | | | | Net income attributable to Ace Hardware Corporation| $| 34. 3| | $| 17. 0| | $| 59. 4| | $| 58. 5| | Accrued patronage distributions| $| 33. 3| | $| 15. 2| | $| 57. 0| $| 53. | | See accompanying notes to the condensed consolidated financial statements. | | | | | Ray AGriffith, GuziK, William M & Gast, Erik D. , 2012). | | | | | | | | | | | | | ACE HARDWARE CORPORATION| | | | | | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS| | | | (Unaudited, in millions)| | | | | | | | Nine Months Ended| | September 29,| | | October 1,| | | 2012| | | 2011| | | (39 Weeks)| | | (39 Weeks)| Operating Activities| | | | | | Net income| $| 59. 7| $| 58. 8| Adjustments to reconcile net income to net cash provided by operating activities:| | | | | | Depreciation and amortization| | 30. | | | 29. 0| Amortization of deferred gain on sale leaseback| | (0. 9)| | | (0. 9)| Amortization of deferred financing costs| | 1. 6| | | 2. 2| Gain on disposal of assets, net| | -| | | (2. 0)| Provision for doubtful accounts| | 2. 8| | | 3. 2| Loss on early extinguishment of debt| | 19. 9| | | -| Other, net| | 0. 2| | | -| Changes in operating assets and liabilities:| | | | | | Receivables| | (43. 2)| | | (39. 0)| Inventories| | (28. 9)| | | (68. 9)| Other current assets| | (2. 6)| | | 2. 7| Other long-term assets| | (7. 0)| | | (8. 0)| Accounts payable and accrued expenses| | 32. 6| | | 72. | Other long-term liabilities| | 6. 0| | | 2. 2| Deferred taxes| | 1. 1| | | 5. 0| Net cash provided by operating activities| | 71. 3| | | 56. 6| Investing Activities| | | | | | Purchases of marketable securities| | (9. 0)| | | (46. 1)| Proceeds from sale of marketable securities| | 8. 6| | | 46. 3| Purchases of property and equipment| | (31. 2)| | | (19. 5)| Decrease in notes receivable, net| | 1. 6| | | 1. 4| Other| | 0. 1| | | 0. 1| Net cash used in investing activities| | (29. 9)| | | (17. 8)| Financing Activities| | | | | | Net borrowings under revolving line of credit| | 113. 0| | | 9. | Proceeds from issuance of long-term debt| | 200. 0| | | -| Redemption of senior notes| | (301. 3)| | | -| Principal payments on long -term debt| | (7. 5)| | | (4. 0)| Payments of deferred financing costs| | (5. 2)| | | -| Payments of cash portion of patronage distribution| | (27. 7)| | | (26. 4)| Cash Flow Projection Condensed Consolidated Statements of Cash Flows (Unaudited) for the nine months ended September 29, 2012 and October 1, 2011 Payments of patronage refund certificates| | (17. 3)| | | (17. 3)| Proceeds from sale of noncontrolling interests| | 0. 3| | | 8. 8| Other| | 0. 6| | | 0. | Net cash used in financing activities| | (45. 1)| | | (29. 2)| (Decrease) increase in cash and cash equivalents| | (3. 7)| | | 9. 6| Cash and cash equivalents at beginning of period| | 15. 8| | | 9. 3| Cash and cash equivalents at end of period| $| 12. 1| $| 18. 9| Supplemental disclosure of cash flow information:| | | | | | Interest paid| $| 21. 3| | $| 20. 1| Income taxes paid| $| 0. 9| $| 0. 5| See accompanying notes to the condensed consolidated financial statements. | | | | 6| | | | | | (Ray A Griffith, GuziK, William M & Gast, Erik D. , 2012 8. 0 Management considerations ACE will undertake a big change in bringing ACE hardware to Bahrain, Bahrain overall will be a good prospect as the company has penetrated a similar market in the Middle East (i. e. United Arab Emirates) and with a very stable economy and freedom of business with no government interruptions it will be a relatively easy venture for an established brand such as ACE. However the management at ACE has to consider several factors that will make the venture a more smooth transition, such as trying a joint venture with a local business, culture considerations so as not to put out unethical products. 8. Personnel/sales force factors A sharp forecast of more and employees getting into the professional field in Bahrain, and the stiff rise in population over recent years and also the preferences giving to the locals in hiring, ACE hardware has to take into considerations means and processes of hiring its employees, personnel training and qualification has to be of the highest standard and profe ssional communication skills has to be a criteria in hiring employees 8. 2 Business Advisors: With the help of a business advisor Ace could more effectively implement their strategy to break into the market in Bahrain. An effective business advisor would ensure a smoother transition by assisting ace in dealing with the laws and regulations entering the market and guiding them through government policies. Due to Aces existing established stores already present in the UAE the corporation already has knowledge on the different structures of setting up business in the Middle East. Business advisors in Bahrain would help them in ways more specific to the Bahrain market and can also help them with most effective Methods of Marketing in the country and the most effective locations to set up stores. 9. Recommendations/Conclusion Ace should undertake an aggressive marketing campaign upon entering the market in order to create brand awareness using ‘Coming soon† promotions to build up the hype of the store. Ace should engage with local business advisors in Bahrain to help guide them with cultural differences and deal with government legislations and regulations. Ace should undertake further Exten sive research to gain a better understanding on aspects of the Bahrain hardware market and to know their potential competitors and their offerings more in order to price, promote and operate more effectively.

The Civil Rights Movement of the 1950s essays

The Civil Rights Movement of the 1950s essays Several factors contributed to the rise of the African-American protests leading to the civil rights movement in the 1950's. A prominent factor in the shaping of the Civil Rights Movement was the legacy of World War II. After the black men and women served in the military or worked in war plants, they developed a broader view of their place in the world than compared to their isolated lives in the 1940's. Another important factor is that the urban black middle class began to grow and flourish after the war. Most of the drive and force for the civil right movement came from leaders of urban black communities-ministers, educators, professionals, and many black students from universities and colleges. Television, media and other forms of culture were another factors in the rising consciousness of racism in America. This generation was constantly reminded more than any other generation before, of how the white Americans lived and how unequal and unjust the African Americans were treated . Television showed demonstrations on a national level, causing activism in one community to spread to others, and inspire similar protests. Another prominent factor in the shaping of the Civil Rights Movement was the arrival of Cold War politics. After the war, the United States was in a difficult situation in regards to the present international concern for civil rights. Foreign delegates from the United Nations were able to witness the degree of racial discrimination present in the United States. This was an embarrassment to Americans, who were trying to present the United States as a model nation to the world. Black Americans began to reach out to the world for help, criticizing the US Government through various forms of articles and public speeches. Black leaders spoke openly about the cruelty and inhumanity in the United States. Comments such as these attracted the attention of many people across the world, ultimately ruining the United States' fo...

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Romantic Phrases for Dating in Italian

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