Economic Justification for High Salaries in Sport

Justification of the huge salaries paid to some top athletes; an economic perspective. Over the last century there has been much research into the area of Labour Economics, and hence the determinants of supply, demand and wages for labour. In this essay, I will be looking at the unique example of the Sports Labour Market with specific focus on the European Football Market, and use various economic models to justify the huge salaries currently offered to top athletes within this field.The wages of professional footballers have risen dramatically since the Bosman ruling in December 1995, in which EU football players were given the right to a  free transfer  at the end of their contracts, with the provision that they were transferring from a club within one EU Association to a club within another EU Association (European Commission, 2012).This has been supported by various studies, including (Simmons, 1997), who argued that the move towards a free agency had the consequent impact of increasing players’ salaries, as the forgone transfer fees translate into increased salaries, since the bargaining power is transferred to the player. This was reinforced by (Downward, 2000) who found that post-Bosman, the wages within the United Kingdom’s Premier League rose considerably.However, these findings conflict with other studies conducted, including (Szymanski, 1999), who argued that the new ruling only lead to increased wages for superstar players who have the greatest bargaining power, and that it did not affect the wages for the average player. During this essay I will first discuss the basic economic principles relating to the labour market, and subsequently introduce various models developed with specific focus on the sports labour market. Demand for labour is â€Å"derived demand† because it is dependent on the demand for the final product that the labour produces (R.Sandy, 2004). The conventional model used to analyse wage determinants states that the demand for labour is dependent on the Marginal Revenue Product of Labour (MRP) which is â€Å"the change in revenue that results from the addition of one extra unit (employee) when all other factors are kept equal† (Investopedia, 2012). In the field of sport, the industry is in a real sense selling its athletes, hence the demand for labour is dependent on the athletes â€Å"product† which could be viewed as his or her contribution towards the teams win column. The value of a win to the ports franchise is dependent on how the fans respond when the team wins more games. This value could be realised through the many revenue streams that sports franchises currently operate, perhaps most notably in the form of increased ticket sales, increased spending on merchandise and prize money. The â€Å"Standard Model† or â€Å"Perfect Competition Model† for wage determinants assumes that the sports franchise will operate at the profit maximising level of outpu t, i. e. when the last unit of labour that is added adds as much to the firms revenues as to its costs > MRPL = MCL as shown in Figure 1.Figure 1– PC Model Revenue and cost Marginal Wage Cost ARP MRP Employment of labour However, there are many limitations to this model, as the labour market for competitive athletes is far more complex. One basic argument against this model is that if in a perfectly competitive industry; firms earn abnormal profits, it assumes that more firms will enter the market and diminish these returns. Nonetheless, there are huge barriers to entry in the professional sports industry, and freedom of entry and exit does not exist.If we look at the Premier League for example, each club typically has a local monopoly, and due to the nature of the market, one firm may bid up the price of labour as it hires more units, hence in the sense it could be viewed as a monopsonistic market (R. Sandy, 2004). Furthermore, there is uncertainty over quality, as sports te ams have uncertainty over both the new players they hire and even experienced players and in the PC model the quality of labour is assumed to be known to the firm. Also due to long-term contracts it is impossible to predict how their skills will deteriorate or improve ver that period and if any injuries will occur. Furthermore, Players have to learn the weaknesses and strengths of their team-mates and to coordinate their strategies. A group of players who have been together for years will be much more effective than a group of equally talented individuals who have just been assembled into a team (R. Sandy, 2004). When establishing a suitable model to justify the enormous wages paid to some top athletes, we should first consider some basic economic principles. By definition, Star players are scarce hence the supply of these star players is highly inelastic.This in itself would inflate the wage of these players, as the supply of top talent is very limited. To add a unit of player qual ity the team has to pay a higher price than it paid for its last unit of quality (Robinsion, 2012). However, it has been suggested that the labour supply curve has become more elastic since the globalisation of the sports labour market. Sherwin Rosen’s seminal 1981 paper on the economics of superstars asked the question why â€Å"relatively small numbers of people earn enormous amounts of money and seem to dominate the fields in which they engage. Rosen suggests that in superstar markets, â€Å"small differences in talent at the top of the distribution will translate into large differences in revenue† (Rosen, 1981). This suggests that the MRP of labour in sports, accelerates at an almost exponential rate as talent or quality increases, and profit-maximisers will operate where MRPL = MCL, hence leading to high salaries. Rosen simple insight was that â€Å"†¦ sellers of higher talent charge only slightly higher prices than those of lower talent, but sell much larg er quantities; their greater earnings come overwhelmingly from selling larger quantities than from charging higher prices†.This was tested empirically on the Italian League by Simmons & Lucifora in 2003 and the findings were consistent with Rosen’s hypothesis, and found that relatively small number of performers dominate their industry and earn a disproportionate share of revenue (Simmons C. L. , 2003). Furthermore, in a study conducted by (Depken, 2000), it was found that performance may be affected by the dispersion of pay within teams. Hefound, empirically, that less salary disparity resulted in greater team cohesiveness and more efficient team production.Another justification given for these huge salaries has been deemed the â€Å"Demonstration Effect†. This is a positiveexternality in the sense that a team which hires a superstar may raise the revenues of other teams in the league. This was found by Hausman and Leonard (1997) who established that the presenc e of a superstar such as Michael Jordan can have a substantial effect on the number of viewers watching NBA basketball games and increase other teams’ revenue as well as his own (Leonard, 1997). Perhaps one of the most important factors relating to salaries is the underlying motive of owners.There have been various views on whether owners actually employ a utility maximisation or profit maximisation strategy, and in the European Football industry, it could be argued that both forms exist. Gerald Scully investigated the theoretical relationship between a club’s winning percentage, ticket prices, attendance and profits. He stated that the marginal cost of acquiring player talent (T) is given by MC(T). Also, the demand for wins depends on thesize of the franchise market and the elasticity of fans demand for wins.In this model the term we represents a profit-maximising winning percentage where MC(T) = MR(T), the marginal revenue derived from a particular level of talent, w ith Te being the profit-maximising level of talent required to produce this outcome. This can be shown in Figure 2 Figure 2 – Scully’s Model Price / Cost Te MC(T) P C D(T) MR(T) Win percentage W2 We W1 However, playing success has a random component due to injuries, mistakes by the referee, or a mismatch between managerial skills and players.Thus, there is a range of win percentages associated with Te talent such as w1 – w2. In turn this range gives rise to variation in attendance between A1 and A2 in Figure 3. To show the relationship between profit and win percentage Scully uses Figure 4. He shows a horizontal line ? = 0 which describes the club’s break-even point. He also makes the assumption that costs other than talent are fixed. Since Scully assumes that revenue is proportional to the team’s winning percentage, as indicated by ? T) in Figure 3, but that costs are fixed for the season, teams will make positive profits for winning percentages a bove or close to the profit maximising level, we, as shown by ? 0 Attendance Profit Figure 3Figure 4 ?(T) = TR ? TC A ?3 A3 ?2 A2 ?0 ?1 A1 Win percentage 0 w3 w2 w1 Win Percentage 0 w3 w2 w1 On the other hand, there are some criticisms to this model. Firstly, considering European Football, clubs also compete in European competitions, therefore giving incentive to have T >Te. In addition, Scully’s model focuses on the proportion of games won.Fans may be more interested in their team contending for a championship. These are not the same; hence in an evenly balanced league a team with nearly 50% wins could be in contention while in a highly unbalanced league a team with 60% wins could be out of contention. The utility maximisation model was introduced by Peter Sloane in 1971, and he viewed that in the case of football this model was intuitively the most appealing in since we may regard football as a consumption activity (Sloane, 1971).In Sloane’s model the utility U of an owner is a function, u, of; playing success; defined as the percentage of wins, (w); average attendance which adds to the spectacle and atmosphere (a); the competitive balance of the league defined as the standard deviation of league-wide winning percentages (x); having attractive opponents increases the interest in games; and after tax profits minus the threshold level of profit required to stay in business (x); profits add to the stability of the club and help to attract star players.Thus Utility Maximisation is the function denoted by U = u (w, a, x, ? ), subject to ? r 0 + taxes; where ? r equals actual profits and ? 0 equals minimum profits. Both ? r and ? 0 may in fact be negative, in which case the taxes due would be zero. This is possible where the club has access to external sources of finance (f). In this model, the owner might weight each component of the function differently; hence if the owner puts a high weight on w then they will be prepared to trade off some rofit ( or make losses) in order to secure additional playing success. Sloane’s model is perhaps even more relevant today, as there has been a recent trend for billionaires to acquire football clubs and spend unprecedented amounts on talent, purely to maximise the amount of wins. Implications of this model could also be used to describe the financial instability of some clubs, and the unbalanced performance of many European Leagues. Figure 5 – Sloane ModelReturns and cost of winning L’’ D TC C TRL L’ S’’ B TRS S’ A 0 W’L W’s WL Ws Win Percentage This result is illustrated in Figure 5, which compares a big city club, L, with a small city club, S, competing in a two-team league. As with the Scully model, it is assumed that costs of producing wins rises linearly and are identical for both clubs. Returns to winning rise initially at an increasing rate, but then at a decreasing rate as interest wanes if a team wins too often.T he total returns to winning schedule for a large city team TRL lies above that for a small city team TRS as the larger population catchment area in the former case means that the large city team will attract more spectators for any given winning percentage. The financial instability arises from the zero sum nature of the wins within the league. If the large city team wins more often, denoted by L’, this means that the small city team will win less often, denoted by S’. Thus the success of one club will drive the other into the area of loss making (anywhere below TC).Due to the different regulations and restrictions, there is no one-size fits all model, but in the case of European Football, the most influential factor relating to players wages is the motives of the owner. Many high profile clubs in recent times have been criticised for spending endless sums of money to bring in the talent to enable them to win. Perhaps most notably, in the case of Chelsea, Roman Abromav ich total spending has surpassed â‚ ¬1bn [ (Jackson, 2012) ], and Chelsea has consistently reported losses with Abramovich’s sole mission of wanting to win the European Champions League.When looking at Sloane’s model, it could be viewed that in the case of utility maximisation, that Abramovich puts heavy weighting on the winning aspect of the function, with little or no emphasis on profits, and perhaps in this rare example, it could be viewed that he has no have a maximum loss. To overcome this growing trend, UEFA have implemented new rules regarding Financial Fair Play which includes an obligation for clubs, over a period of time, to balance their books or break even.Under the concept, clubs cannot repeatedly spend more than their generated revenues, and clubs will be obliged to meet all their transfer and employee payment commitments at all times† [ (UEFA, 2012) ]. This would be a new factor that needs to be introduced into economic models. Furthermore, it c ould be viewed that the traditional business model of Football clubs is changing, as in the case of David Beckham, the increased merchandise sales realised by Real Madrid and LA Galaxy has meant that they have been able to justify his huge salaries ased on the marginal revenue product that he generates. Some superstars can have huge impacts on franchises total revenue, as described in the superstar effect, and clubs are forced to pay all players huge salaries to prevent underperformance due to pay disparity. Bibliography Ross Jackson. (2012, 02 01). Goal. com. Retrieved from http://www. goal. com/en-gb/news/2896/premier-league/2012/02/01/2879167/roman-abramovichs-chelsea-spending-surpasses-1-billion Depken, C. (2000). Wage disparity and team productivity: evidence from major. Economics Letters 67 . Downward, P. . (2000). The Economics of Professional Team Sports. London: Routledge. European Commission. (2012, 12 02). White Paper on Sport. Retrieved from The Organisation of Sport: ht tp://ec. europa. eu/sport/white-paper/swd-the-organisation-of-sport_en. htm#4_2 Investopedia. (2012, 12 02). Marginal Revenue Product. Retrieved from http://www. investopedia. com/terms/m/marginal-revenue-product-mrp. asp#axzz2Duw8EOwf Leonard, J. H. (1997). Superstars in the NBA. Journal of Labour Economics . R. Sandy, P. S. (2004). The Economics of Sport; An International Perspective.New York: Palgrave Macmillan. Robinsion, T. (2012). The Labour Market for Players Lecture. Manchester. Rosen, S. (1981). The Economics of Superstars. The American Economic Review . Simmons. (1997). Implications of the Bosman Ruling. Economic Affairs , 13-18. Simmons, C. L. (2003). Superstar Effects in Sport : Evidence From Italian Soccer. Journal of Sports Economics . Sloane, P. J. (1971). The Economics of Professional Football: The Football Club As A Utility Maximiser. Scottish Journal of Political Economy . Szymanski, K. &. (1999). Winners and Losers. London: Penguin. Economic Justification for High Salaries in Sport Justification of the huge salaries paid to some top athletes; an economic perspective. Over the last century there has been much research into the area of Labour Economics, and hence the determinants of supply, demand and wages for labour. In this essay, I will be looking at the unique example of the Sports Labour Market with specific focus on the European Football Market, and use various economic models to justify the huge salaries currently offered to top athletes within this field.The wages of professional footballers have risen dramatically since the Bosman ruling in December 1995, in which EU football players were given the right to a  free transfer  at the end of their contracts, with the provision that they were transferring from a club within one EU Association to a club within another EU Association (European Commission, 2012).This has been supported by various studies, including (Simmons, 1997), who argued that the move towards a free agency had the consequent impact of increasing players’ salaries, as the forgone transfer fees translate into increased salaries, since the bargaining power is transferred to the player. This was reinforced by (Downward, 2000) who found that post-Bosman, the wages within the United Kingdom’s Premier League rose considerably.However, these findings conflict with other studies conducted, including (Szymanski, 1999), who argued that the new ruling only lead to increased wages for superstar players who have the greatest bargaining power, and that it did not affect the wages for the average player. During this essay I will first discuss the basic economic principles relating to the labour market, and subsequently introduce various models developed with specific focus on the sports labour market. Demand for labour is â€Å"derived demand† because it is dependent on the demand for the final product that the labour produces (R.Sandy, 2004). The conventional model used to analyse wage determinants states that the demand for labour is dependent on the Marginal Revenue Product of Labour (MRP) which is â€Å"the change in revenue that results from the addition of one extra unit (employee) when all other factors are kept equal† (Investopedia, 2012). In the field of sport, the industry is in a real sense selling its athletes, hence the demand for labour is dependent on the athletes â€Å"product† which could be viewed as his or her contribution towards the teams win column. The value of a win to the ports franchise is dependent on how the fans respond when the team wins more games. This value could be realised through the many revenue streams that sports franchises currently operate, perhaps most notably in the form of increased ticket sales, increased spending on merchandise and prize money. The â€Å"Standard Model† or â€Å"Perfect Competition Model† for wage determinants assumes that the sports franchise will operate at the profit maximising level of outpu t, i. e. when the last unit of labour that is added adds as much to the firms revenues as to its costs > MRPL = MCL as shown in Figure 1.Figure 1– PC Model Revenue and cost Marginal Wage Cost ARP MRP Employment of labour However, there are many limitations to this model, as the labour market for competitive athletes is far more complex. One basic argument against this model is that if in a perfectly competitive industry; firms earn abnormal profits, it assumes that more firms will enter the market and diminish these returns. Nonetheless, there are huge barriers to entry in the professional sports industry, and freedom of entry and exit does not exist.If we look at the Premier League for example, each club typically has a local monopoly, and due to the nature of the market, one firm may bid up the price of labour as it hires more units, hence in the sense it could be viewed as a monopsonistic market (R. Sandy, 2004). Furthermore, there is uncertainty over quality, as sports te ams have uncertainty over both the new players they hire and even experienced players and in the PC model the quality of labour is assumed to be known to the firm. Also due to long-term contracts it is impossible to predict how their skills will deteriorate or improve ver that period and if any injuries will occur. Furthermore, Players have to learn the weaknesses and strengths of their team-mates and to coordinate their strategies. A group of players who have been together for years will be much more effective than a group of equally talented individuals who have just been assembled into a team (R. Sandy, 2004). When establishing a suitable model to justify the enormous wages paid to some top athletes, we should first consider some basic economic principles. By definition, Star players are scarce hence the supply of these star players is highly inelastic.This in itself would inflate the wage of these players, as the supply of top talent is very limited. To add a unit of player qual ity the team has to pay a higher price than it paid for its last unit of quality (Robinsion, 2012). However, it has been suggested that the labour supply curve has become more elastic since the globalisation of the sports labour market. Sherwin Rosen’s seminal 1981 paper on the economics of superstars asked the question why â€Å"relatively small numbers of people earn enormous amounts of money and seem to dominate the fields in which they engage. Rosen suggests that in superstar markets, â€Å"small differences in talent at the top of the distribution will translate into large differences in revenue† (Rosen, 1981). This suggests that the MRP of labour in sports, accelerates at an almost exponential rate as talent or quality increases, and profit-maximisers will operate where MRPL = MCL, hence leading to high salaries. Rosen simple insight was that â€Å"†¦ sellers of higher talent charge only slightly higher prices than those of lower talent, but sell much larg er quantities; their greater earnings come overwhelmingly from selling larger quantities than from charging higher prices†.This was tested empirically on the Italian League by Simmons & Lucifora in 2003 and the findings were consistent with Rosen’s hypothesis, and found that relatively small number of performers dominate their industry and earn a disproportionate share of revenue (Simmons C. L. , 2003). Furthermore, in a study conducted by (Depken, 2000), it was found that performance may be affected by the dispersion of pay within teams. Hefound, empirically, that less salary disparity resulted in greater team cohesiveness and more efficient team production.Another justification given for these huge salaries has been deemed the â€Å"Demonstration Effect†. This is a positiveexternality in the sense that a team which hires a superstar may raise the revenues of other teams in the league. This was found by Hausman and Leonard (1997) who established that the presenc e of a superstar such as Michael Jordan can have a substantial effect on the number of viewers watching NBA basketball games and increase other teams’ revenue as well as his own (Leonard, 1997). Perhaps one of the most important factors relating to salaries is the underlying motive of owners.There have been various views on whether owners actually employ a utility maximisation or profit maximisation strategy, and in the European Football industry, it could be argued that both forms exist. Gerald Scully investigated the theoretical relationship between a club’s winning percentage, ticket prices, attendance and profits. He stated that the marginal cost of acquiring player talent (T) is given by MC(T). Also, the demand for wins depends on thesize of the franchise market and the elasticity of fans demand for wins.In this model the term we represents a profit-maximising winning percentage where MC(T) = MR(T), the marginal revenue derived from a particular level of talent, w ith Te being the profit-maximising level of talent required to produce this outcome. This can be shown in Figure 2 Figure 2 – Scully’s Model Price / Cost Te MC(T) P C D(T) MR(T) Win percentage W2 We W1 However, playing success has a random component due to injuries, mistakes by the referee, or a mismatch between managerial skills and players.Thus, there is a range of win percentages associated with Te talent such as w1 – w2. In turn this range gives rise to variation in attendance between A1 and A2 in Figure 3. To show the relationship between profit and win percentage Scully uses Figure 4. He shows a horizontal line ? = 0 which describes the club’s break-even point. He also makes the assumption that costs other than talent are fixed. Since Scully assumes that revenue is proportional to the team’s winning percentage, as indicated by ? T) in Figure 3, but that costs are fixed for the season, teams will make positive profits for winning percentages a bove or close to the profit maximising level, we, as shown by ? 0 Attendance Profit Figure 3Figure 4 ?(T) = TR ? TC A ?3 A3 ?2 A2 ?0 ?1 A1 Win percentage 0 w3 w2 w1 Win Percentage 0 w3 w2 w1 On the other hand, there are some criticisms to this model. Firstly, considering European Football, clubs also compete in European competitions, therefore giving incentive to have T >Te. In addition, Scully’s model focuses on the proportion of games won.Fans may be more interested in their team contending for a championship. These are not the same; hence in an evenly balanced league a team with nearly 50% wins could be in contention while in a highly unbalanced league a team with 60% wins could be out of contention. The utility maximisation model was introduced by Peter Sloane in 1971, and he viewed that in the case of football this model was intuitively the most appealing in since we may regard football as a consumption activity (Sloane, 1971).In Sloane’s model the utility U of an owner is a function, u, of; playing success; defined as the percentage of wins, (w); average attendance which adds to the spectacle and atmosphere (a); the competitive balance of the league defined as the standard deviation of league-wide winning percentages (x); having attractive opponents increases the interest in games; and after tax profits minus the threshold level of profit required to stay in business (x); profits add to the stability of the club and help to attract star players.Thus Utility Maximisation is the function denoted by U = u (w, a, x, ? ), subject to ? r 0 + taxes; where ? r equals actual profits and ? 0 equals minimum profits. Both ? r and ? 0 may in fact be negative, in which case the taxes due would be zero. This is possible where the club has access to external sources of finance (f). In this model, the owner might weight each component of the function differently; hence if the owner puts a high weight on w then they will be prepared to trade off some rofit ( or make losses) in order to secure additional playing success. Sloane’s model is perhaps even more relevant today, as there has been a recent trend for billionaires to acquire football clubs and spend unprecedented amounts on talent, purely to maximise the amount of wins. Implications of this model could also be used to describe the financial instability of some clubs, and the unbalanced performance of many European Leagues. Figure 5 – Sloane ModelReturns and cost of winning L’’ D TC C TRL L’ S’’ B TRS S’ A 0 W’L W’s WL Ws Win Percentage This result is illustrated in Figure 5, which compares a big city club, L, with a small city club, S, competing in a two-team league. As with the Scully model, it is assumed that costs of producing wins rises linearly and are identical for both clubs. Returns to winning rise initially at an increasing rate, but then at a decreasing rate as interest wanes if a team wins too often.T he total returns to winning schedule for a large city team TRL lies above that for a small city team TRS as the larger population catchment area in the former case means that the large city team will attract more spectators for any given winning percentage. The financial instability arises from the zero sum nature of the wins within the league. If the large city team wins more often, denoted by L’, this means that the small city team will win less often, denoted by S’. Thus the success of one club will drive the other into the area of loss making (anywhere below TC).Due to the different regulations and restrictions, there is no one-size fits all model, but in the case of European Football, the most influential factor relating to players wages is the motives of the owner. Many high profile clubs in recent times have been criticised for spending endless sums of money to bring in the talent to enable them to win. Perhaps most notably, in the case of Chelsea, Roman Abromav ich total spending has surpassed â‚ ¬1bn [ (Jackson, 2012) ], and Chelsea has consistently reported losses with Abramovich’s sole mission of wanting to win the European Champions League.When looking at Sloane’s model, it could be viewed that in the case of utility maximisation, that Abramovich puts heavy weighting on the winning aspect of the function, with little or no emphasis on profits, and perhaps in this rare example, it could be viewed that he has no have a maximum loss. To overcome this growing trend, UEFA have implemented new rules regarding Financial Fair Play which includes an obligation for clubs, over a period of time, to balance their books or break even.Under the concept, clubs cannot repeatedly spend more than their generated revenues, and clubs will be obliged to meet all their transfer and employee payment commitments at all times† [ (UEFA, 2012) ]. This would be a new factor that needs to be introduced into economic models. Furthermore, it c ould be viewed that the traditional business model of Football clubs is changing, as in the case of David Beckham, the increased merchandise sales realised by Real Madrid and LA Galaxy has meant that they have been able to justify his huge salaries ased on the marginal revenue product that he generates. Some superstars can have huge impacts on franchises total revenue, as described in the superstar effect, and clubs are forced to pay all players huge salaries to prevent underperformance due to pay disparity. Bibliography Ross Jackson. (2012, 02 01). Goal. com. Retrieved from http://www. goal. com/en-gb/news/2896/premier-league/2012/02/01/2879167/roman-abramovichs-chelsea-spending-surpasses-1-billion Depken, C. (2000). Wage disparity and team productivity: evidence from major. Economics Letters 67 . Downward, P. . (2000). The Economics of Professional Team Sports. London: Routledge. European Commission. (2012, 12 02). White Paper on Sport. Retrieved from The Organisation of Sport: ht tp://ec. europa. eu/sport/white-paper/swd-the-organisation-of-sport_en. htm#4_2 Investopedia. (2012, 12 02). Marginal Revenue Product. Retrieved from http://www. investopedia. com/terms/m/marginal-revenue-product-mrp. asp#axzz2Duw8EOwf Leonard, J. H. (1997). Superstars in the NBA. Journal of Labour Economics . R. Sandy, P. S. (2004). The Economics of Sport; An International Perspective.New York: Palgrave Macmillan. Robinsion, T. (2012). The Labour Market for Players Lecture. Manchester. Rosen, S. (1981). The Economics of Superstars. The American Economic Review . Simmons. (1997). Implications of the Bosman Ruling. Economic Affairs , 13-18. Simmons, C. L. (2003). Superstar Effects in Sport : Evidence From Italian Soccer. Journal of Sports Economics . Sloane, P. J. (1971). The Economics of Professional Football: The Football Club As A Utility Maximiser. Scottish Journal of Political Economy . Szymanski, K. &. (1999). Winners and Losers. London: Penguin.

Movie Review: Gomorrah Essay

The film features five people whose lives are influenced by organized crime. Don Ciro is a fearful middleman who dispenses money to imprisoned gangsters. In a delivery, Ciro is attacked by two gangsters who seek revenge from their traditional affiliate clan. To save his own life, Ciro offers his services to the two gangsters. Ciro explains that he can lure the clan to a trap where they can kill them. The two gangsters attacked the clan headquarters and killed everyone. Ciro is spared. Totois a delivery boy who witnesses drug dealers dump a bag of drugs and guns during a police raid. He takes the bag and returns it to the gang. The gang convinces him to join them. Toto agrees. Toto attends the initiation rites. After which, he is accepted as a member of the gang. At a particular instance, he witnesses one of his gang killed by a drive-by. The gang decides to exact revenge by choosing a particular victim. Maria Nazionale is chosen as the victim because her son joined a rival gang. Salvatore lures Maria to a particular place where she is killed. Roberto is a skilled worker working in a waste management firm. Franco, his immediate boss, illegally dumps toxic wastes in abandoned quarries. In a particular operation, toxic waste is accidentally dispersed on a driver. Instead of saving the driver, his boss hires a group of children to drive the trucks. Roberto resigns from his position in disgust. Pasquale is a skilled tailor who works for a garment factory proprietor (who is associated with the Camorra gang). He accepts a night job at the garment factory. Because the factory is a rival of the Camorra factory, hired gunmen open fire on his car. He escapes the gunning and leaves town for good. Marco and Ciro are teenagers aspiring to be top gangsters. They profit from buy and sell of drugs from African clients. The two infuriates the top bosses who conspire to kill them. Finally, the two are killed in a supposedly disguised operation. Success and Arrogance. Marco and Ciro’s success has infuriated the top mafia bosses in town. Their immediate boss warned them not to engage in rouse behavior in the street. Ignoring the warning, the two steal a set of weapons owned by the Camorra gang. To celebrate their success, the two fire off rounds in the banks of a canal. At a club, the Camorra gang warns them to return the stolen weapons. The two remain arrogant. The bosses try a different strategy. One of the bosses offers them to work for the mob. The boss offers them 10 000 Euros in exchange for the stolen weapons and a murder request. The two immediately accept the offer, not knowing that this is a pre-conceived trap. At the supposed target, the two are gunned down. Success, in this case, is manifested by the following behavior: 1) cheating the Africans of the volume and price of drugs, 2) firing off rounds in the banks of a canal, and 3) accepting the offer of the local boss. ‘Basking in immediate successes,’ the two are confident that they could outwit the local bosses. Indeed, their rouse behavior has infuriated every gangster in town including their immediate boss. Their successes are not sustained by rational speculation. Indeed, the two perceive the offer as an additive to their success, failing to realize that it was a pre-conceived trap. In any case, their successes have left a powerful impression on their egos. Both are confident that success is part of their self-consortium – that failure does not exist within their self-imposed bounds. In reality, this is a prelude to a tragedy. Arrogance is the mirror image of self-reinforced success. Arrogance is manifested by the following behavior: 1) ignoring the warning of their immediate boss, 2) refusing to return the stolen weapons to the Camorra gang, 3) ignoring the threat of the gang, 4) refusing to negotiate with the local bosses, and 5) failing to realize the existence of a trap. The environment of the scene can be described as serene, non-violent, beautiful, and economically prosperous. Yet, behind this aura of calmness lies a great evil. The town is a bastion of organized crime. From a macro perspective, crime organizations have persistent influence on the police, the local government, and the neighborhood. At night, drug dealers roam on the street looking for potential clients. At day, the local bosses engage in illegal transactions. The neighborhood is subservient to these bosses because they offer protection. The police is reluctant to arrest the bosses because of fear. Synchronous Sound. Sound is matched temporarily with the movements occurring in the image, as when dialogue corresponds to lip movements. A case example: when Ciro and Marco are gunned down, the credits rolls down to the song ‘Herculaneum’ (by Massive Attack). The thematic content of the song corresponds to the scene itself. Backlighting. Backlighting is deemphasized because the environment is serene and condescending. Backlighting is essential in scenes where hasty drug transactions are depicted.

Book Summary The Goal Processes and Operations

The Goal Processes and Operations Key Idea The main message of the book is that the proper way to manage any operation, whether it’s a manufacturing plant or a web design shop or a clothing store, is to: 1) Identify what needs to be changed. 2) Identify what it should be changed to. 3) Identify how to execute the change. Summary This story is based around the life of Alex Rogo, Plant Manager for Uniware, which is a division of Unico. After some very upsetting customer approaches Alex’s boss, Bill Peach, is given a challenge to turn the plant around in three months. Due to the limited amount of time available, there are not many outside tools available such as consultants, surveys, and so on. With very few hopes, Alex foresees the inevitable until he remembers his conversation with Jonah, a physicist who Alex knew from a previous job. It is not until Alex’s job is in at risk that he decides to devour into his conversation with Jonah. During the conversation, Jonah asks him several questions to analyze his company’s situation. The conversation leads ultimately to the question, What is the goal of any business? After rethinking his conversation, Alex realizes that the goal of any business is to make money. Furthermore, if the goal is to make money any action toward this goal is considered productive and any action not moving towards the goal is nonproductive. Alex was unsure of such a simple answer and decided to contact Jonah to continue the search for more answers. Once Alex contacts Jonah they define the following measurements to define the success of any plant’s production: 1) Throughout = rate that the system is used to generate money through sales. This measurement would consist of what a product would be worth when sold at market value after deducting operational expense and inventory. 2) Inventory = all the money invested in purchasing items that will be sold. This could include the remains of their machines after being used toward the investment. 3) Operational expense = all the money used to turn inventory into output. This would include such items as depreciation of a machine, lubricating oil, scraps, etc. Jonah explains to Alex that a plant that is continuously productive is considered inefficient. He further explains that continuous production will result in high absenteeism, poor quality and employee turnover. Based on this, he would need to reduce operational expense and inventory to improve throughput to demonstrate a balanced line of production. Jonah leaves him to think about the understanding of two things: what are the dependent events and statistical fluctuations in his plant. During a hiking trip with Alex’s son, he produces a game for a few of the kids to demonstrate an ideal balance line of production. He does this by setting up dependents and uses a die to measure the statistical fluctuations. At the end of the game, he concluded that the bottleneck’s speed of production is what determines the speed of the other dependents. Therefore, inventory moves very slowly because of statistical fluctuations. In the end, this is where Alex began his search inside the plant. After arriving back at work, he and the crew began their search for the bottlenecks. They identify one of the robots, NCX-10, and the heat treatment area as the source of the bottlenecks. Once identified, they began their search for solving them. After following some simple steps they significantly increased production by 12% during the first two months and 20% in the third month. Based on these increases, Alex saves the plant and his got promoted to Bill Peach’s position. Besides the ongoing theme of saving the plant, there is an underlying story about Alex’s personal life. In the beginning Alex’s wife, Julie, and him are constantly arguing about Alex working late in attempts of saving the plant which flows over into not spending any time with his family. Within the first 100 pages of the book, his wife leaves him, after being exhausted of all attempts to save their marriage. However, during his search for reclaiming the plant he does the same with his marriage. I think that the author is telling the audience that there must be a balance between these two lives. It is important for both to be in harmony because eventually they will flow in and out of each environment. Lessons Learned What I enjoyed the most about this book was the layout. It consisted of telling a story about Alex in a novel form, which included dialog, plot, etc. By making the book in this way it broke the specifics down for a layperson, Alex. After all, Alex represents the average person job going down the tube and marriage shortly following it. The source of the problem the whole time was following the rules that were and are continuously engraved into us each day. What I learned about this book is that you should not let your business and processes control you and lead you. Instead, you should be constantly criticizing and reviewing your processes and not settling for any bottlenecks or sticking points. Another major theme in the novel is that the point of a business is to make money, and more specifically, to make a profit. The way to do this is not to create as much as possible, but instead to run as efficiently as possible. That might require making drastic changes to common practices, things that on paper seem like they will hurt the bottom line. For example, in the book, they discover they’re running their manufacturing plant at 80% capacity. That means 20% of the time, they have machines and people just sitting there doing nothing. So they tell their sales manager to get them 20% more work. He says that they can only get it from a client who wants it at below cost, so they would lose money. But Alex convinces him that they only have materials as costs, as they have people doing nothing currently who are getting paid, so their time is not an additional expense. I thought this was very interesting. Application This book would be ideal for anyone interested in simplifying ways to improving any process whether it is manufacturing or service oriented. These back to basics principles, help break down what has become common practice.

Entrepreneurial Decision Making Research Paper Example | Topics and Well Written Essays - 500 words

Entrepreneurial Decision Making - Research Paper Example hought entails critical analysis of each of the available choices; analyzing both the long-term and short-term costs and benefits of every option, and deciding on the most suitable one. Since the decisions made are very critical and determines whether a business stands or collapses, it is necessary for entrepreneurs not to be hasty in the process. There should be a systematic procedure to be adhered to in the course of decision making. According to Entrepreneurshipatease.com (2010), there are four steps for quality decision making: alternatives, consequences, information and plan. In decision making there are varieties of alternatives, which the entrepreneurs may choose from. The main aim of a business is profit maximization and capital growth. An entrepreneur has to do proper calculations to ensure the realization of these key goals. It requires in-depth reasoning to choose wisely from the available alternatives or options. Sabrina (2011) documents two methods of reasoning that an entrepreneur can adopt in the process of decision making; traditional and effectual. Traditional reasoning involves setting goals and working diligently towards meeting them while effectual reasoning involves creating effect through evaluating how to use one’s strengths and resources in for entrepreneurial decision making (Sabrina 2011). Information is power; an entrepreneur should have adequate and extensive information about the available alternatives to enable settling on the best choice. In the course of decision making, plans should be underway to ensure that any eventuality is tactfully dealt with. Each choice made is prone to costs and benefits. The entrepreneur must conduct a cost and benefit analysis to settle on choice with overwhelming benefits. It does not necessarily mean that if an entrepreneurial decision has numerous benefits, then it has no consequences. Consequences often exist,

Real Data Essay Example | Topics and Well Written Essays - 750 words

Real Data - Essay Example The data gathered can be used to perform a number of operations such as mean, standard deviation, variance, correlation etc. Therefore it is safe to say that real data makes it possible to make quantitative classifications. That is why we can say that real data makes it possible to run statistical analysis. The research has been carried out on the results of 2008 American Presidential Elections. The Exhibit 1 shows actual results of elections. The tables are divided according to percentage lead of each president according to states. The data in Exhibit 2 shows pre election polls for each candidate. The data in Exhibit 2 two has been divided according to agencies which had delivered results or conduction these pre election polls. Column D in Exhibit 2 reflects leads to each respective president in states of polls. The data presented is real in nature for Exhibit 2. This is because the format is percentages of actual responses received from the public. Exhibit 1 also shows actual historical data as the responses are shows as percentage of total votes received by each presidential candidate. In column E of exhibit 2 we have prepared another category denoted by numbers. This is a better way to convert real scale to nominal scale and then convert it to percentage to get a solution. The number ‘2’ represents a tie, ‘1’ lead of Obama and ‘0’ lead of McCain. If we calculate the percentage of ‘1’ to the entire population we can calculate how many polls considered Obama to win the elections. The percentage of polls that showed Obama as the winner were 71% where as only 10% predicted a tie of votes. This shows another quality of nominal data that it has to be converted into percentages to reach an analysis. The presidential elections did show a victory for president Obama which reveals that analysis using real data was successful in predicting election results. Nominal data can lead to only qualitative

Leadership and Change Essay Example | Topics and Well Written Essays - 2500 words - 1

Leadership and Change - Essay Example This study discusses that while leadership and change have been analysed and discussed exhaustively using myriad theories and models, it has been widely accepted that no one theory or model is the unique solution. Leadership traits and change management are situation and individual based and being flexible to adapt and execute is the sure-fire way to success. Recognising the power of the mind to dictate the actions and behaviour of the individual, NLP or Neurolinguistic Programming (NLP) is emerging as a method with a lot of promise. This is touted as a method of programming the mind, emphasizing the mind-body-spirit connection. As the essay stresses behavioural flexibility is important because with dynamic situations, the ability to absorb, adapt and absorb are essential to arrive at the goal. Never being afraid to keep changing allows the solution to evolve naturally. The awareness of the fact that people or events cannot be controlled by us but by a self-management, our responses to them can be managed. To achieve this our skill and our ability to manage ourselves directly affect the extent to which we achieve your goals. That is what NLP aims for. Myers-Briggs is popular model used to determine personality types that in turn determine how they react to people and changing circumstances. Bass’s theory of leadership is based on the assumptions that awareness of task importance motivates people and a focus on the team or organization produces better work.

Using Health Information Technology as a Source of Evidence-Based Research Paper

Using Health Information Technology as a Source of Evidence-Based Practice - Research Paper Example Among the various health care IT resources that can be applied in the process of alleviating the effects of the nursing workforce shortages are; tele-health, clinical decision support systems, care planning tools, data capture, decision support system, computerized provider order entry, bar code medication administration, and electronic health records (Clark 22). This paper seeks to explore the last three resources as evidence based resources to help address shortages in the nursing workforce. The electronic health record acts as an official record for persons shared by multiple agencies and institutions. Health information systems that are digitized should improve care quality, efficiency, and ultimately reduce the effects of shortages. The EHR includes family history, allergies, contact information, insurance information, and hospitalization records, among others. Its benefits include efficient retrieval of information, automatic sharing and updating of information where different organizations and offices are concerned, as well as lower effort redundancy (Clark 56). These benefits, as well as others, aid health institutions in reducing reduce the time needed, by nurses, in retrieving information manually, and thus, reducing their workload. Another healthcare IT resource that helps to combat this shortage is patient monitoring technology. As the current nursing workforce continues its transition to proactive models of delivery of healthcare, remote monitored solutions are expected to gain more ground. Information that nurses are provided with include health intelligence, international health research, market analysis, news and commentaries, and strategic insights (Clark 67). These are especially useful since the strained workforce that work for 12 hours has limited time to attain this information themselves. Patient monitoring services offer knowledge on ongoing

Schizophrenia Essay Example | Topics and Well Written Essays - 1250 words

Schizophrenia - Essay Example This difference in levels of cognition in various patients led to more research into other underlying pathologic pathways responsible for severe cognitive impairment in NPI patients but was apparently working fine in patients on NPNN category. Brain morphometry was used to analyze differences. Both groups were tested against each other on the basis of four tests to asses the attention and working memory (verbal and nonverbal) and were confirmed by California verbal learning test and degraded stimulus continuous performance test. The standard deviation within 0.5 was the cut off for near normal cognition whereas 1 standard deviation below normal rendered the patient cognitively impaired. They gray matter was found to be smaller in both the groups along with larger third ventricle. An additional pathology found in NPI was that along with the gray matter, their white matter was also decreased in volume. The lateral ventricle cavity was also enlarged. Whitford et al (2007) further invest igated the white matter abnormalities in schizophrenics and also studied whether the degenerative changes are progressive. T1 weighted magnetic resonance images (MRI) of 41 first- episode schizophrenics were compared against those of 47 normal comparable people for baseline volume of white matter using voxel-based morphometry in statistical parametric mapping- 2 (SPM2). The schizophrenics had decreased volume of white matter in frontal and temporal lobes. However there was an increase in white matter at frontoparietal junctions on both sides. The longitudinal changes at follow up after 2 to 3 years were compared using tensor based morphometry which showed decreased white matter bilaterally in middle and inferior temporal cortices of schizophrenics. The neural connection abnormalities were attributed to this progressive loss of white matter. The structural brain abnormalities at the time of first psychotic episode were studied by Fannon et al (2000) whose research involved 37 patient s going through their first episode of psychosis. T1 weighted steady brain scans of 1.5 mm contiguous sections were obtained and volumetric brain measurements were taken. The patients were found to have structural deviations and there was generalized reduction in brain volume, along with enlarged third and lateral ventricles. Cortical and temporal gray matter was found to be decreased. Schizophrenia is a chronic progressive mental disorder. It is associated with cognitive impairment and worsening interpersonal skills. The attacks are accompanied by hallucinations and delusions. Person feels that he is hearing different sorts of voices and has false beliefs and perceptions. There is extreme emotional instability and the patient may suffer from depression or social isolation. Cognitive decline involves memory impairment, decreased ability to pay attention and difficulty in functional execution of activities. The abnormalities are attributed to abnormal distribution and ratios of gray and white matter in the brain. Apart from that, increase in size of ventricular cavities as well as generalized reduction in brain volume also adds to affect the typical schizophrenic picture. The result is alterations in various brain functions owing to

Marketing and Branding Strategies Research Proposal

Marketing and Branding Strategies - Research Proposal Example Moreover, Nike controls around half of the sports foot wear and apparels market and the combined strength of Adidas and Reebok will make them able to attain almost the same market share as that of the Nike. Thus the merger will strengthen the competitive power of Adidas and Reebok. The combined company won't want to cut its own bottom line by launching a price war. Others, however, think consumers may see more products and aggressive marketing from smaller players in the industry as they work to protect their shares. (Petrecca, and Howard). The mergers are often welcomed by the consumers because of their anticipation of good quality products for cheaper prices. The inability to reduce prices may reflect as a weakness of merger among the public. Any time two competitors join forces, there is a tendency to stop competing - a concept that looks good on paper but can be deadly in-market (Howard). It is quite possible that the lack of competition and trust between the companies may force them to reduce their expenditure on advertisement like activities which will negatively impact the marketing activities of both the companies. Moreover, the reduced marketing campaign by these companies will open the doors widely for the competitors like Nike. The companies say they have already identified about $150 m... Hence these companies will get an opportunity to spent more moneys in other markets where previously these companies spent less for advertisements. Threats Often when former rivals join forces there is a tendency to try to change product lines so they don't go head-to-head. "The real danger may be in trying to reposition one brand or another to not compete. ... Both brands could be diluted in the process." (Petrecca, and Howard) The decreased competition between these companies will force them to reduce their activities which may result in spoiling of their popular products in the market. Benefit of the merging Uniting two of the world's top sports companies and creating a much stronger challenge to Nike, particularly on the global giant's home turf: the prime North American market that accounts for about half of the category's sales worldwide. (Petrecca and Howard) It is not possible for either Adidas or Reebok to challenge the supremacy of Nike in North American markets. But the merger made them capable of raising stiff challenges to Nike in these markets as well. Possible marketing strategies Retailers are in an advantageous position because of the opportunity to deal with products two famous brands. Adidas which dominates the soccer shoes market have contracts with David Beckham like soccer personalities whereas Reebok has contracts with global basketball stars like Yao Ming (Petrecca, and Howard). Thus they can utilize these sports personalities in a complementary manner conduct their marketing strategies effectively. In short, the merger between Reebok and Adidas made them capable to compete effectively with their main competitor Nike. Works Cited 1. Howard, Theresa. USA TODAY. 2005. "Adidas, Reebok lace up for

Discover different ways of approaching nutrition, how it impacts our Research Paper

Discover different ways of approaching nutrition, how it impacts our daily lives and what choices we can make to improve our health and our world - Research Paper Example ing, various health related predicaments such as high cholesterol levels that is responsible for unhealthy heart condition which may lead to high blood pressure and stroke, cancers of various tissues and organs, deformity of bones due to excessive body weight, osteoporosis, hypoglycemia even after consuming the food, anemia, diabetes, stones in kidney or gallbladder, ulcers in various parts of body, multiple sclerosis and asthma could be prevented. The reader is bound to change the eating habit from non-vegetarian diet to healthy vegetarian diet. The book highlights the importance of vegetarian diet intake by focusing on issues that arise due to social, economical and personal quandary due to ill-health. Human beings must care for other inhabitants of the planet by avoiding non-vegetarian diet, this is a step towards healthy life. The author gave utmost importance to the vegetarian diet to lead a happy and contented life and grow to be healthy grandparents free from health dilemmas. The author wrote that it is the prime responsibility of every individual to create an environment that is healthy for coming generations too which is possible by consuming eatables that initiate good health. The book selected is "Diet for a New America" by John Robbins. The book is selected as it provides a new insight to the Americans about their diet and diet style and generates concern about the environment and its conservation; animals and their protection for ethical and moral reasons. The book is carefully and methodologically written and American diet is well researched. The author took efforts to understand the imperative issue as non-vegetarian diet generates health hazards , non-vegetarian nutrition is poorly appreciated in actual sense. People eat what is pleasing to tongue and do not realize to eat what is good to keep them fit and healthy in all senses. John Robbins (D.O.B= 26/10/1947), author from America. He is a son of Irma and Baskin Robbins who run an ice-cream

To What Extent Was There a Moral Crisis in America in the 1920s Essay Example for Free

To What Extent Was There a Moral Crisis in America in the 1920s Essay To what extent was there a moral crisis in America in the 1920’s. During the 1920’s, there most certainly was moral revolutions in America and traditional values were most certainly being challenged by the newer generation. Of course, for example, with the introduction of Hollywood, reforming attitudes that were towards and adopted to women and the economic boom of the 1920’s this was most certainly going to have an effect of the general American public’s moral values. Whilst these changing attitudes may be perceived by traditionalists to be shaping a moral crisis at the time, this essay looks to explore on whether or not there was actually a moral crisis in America in the 1920’s or whether the USA marked society in moral change rather than in entering into a moral crisis, which is defined as a crisis in which you are torn between what you know to be the wrong thing and the right thing, which it is often criticised of by the older generations at the time. The first issue in America which arguably sparked off a moral crisis in America was prohibition as this had illegalised alcohol in the United States and due to the nature of the market which the government was illegalising which had such a high demand for consumers, it meant that consumers were torn between obeying the law and their increasing desires for alcohol. In fact, prohibition had made people drink more alcohol by buying it illegally where it was available in the black market. The prohibition act had, therefore, really challenged American moral values as arguably most consumers in the US drank alcohol as part of normality in their daily lives and so by the government illegalising it, it had only meant that consumers had to fulfil their habits by other means. However, although most Americans were forced to resort to other measures in terms of fulfilling their alcoholic desires, this was not a moral crisis but rather it challenged their moral values whilst the introduction of organised crime as a result of prohibition is what arguably led America into a moral crisis. This is because prohibition acted as a major catalyst of organised crime as it had meant that individuals such as Alcapone were arguably encouraged to start selling alcohol to the American public as they were not being sold openly in the American market. This obviously marked a moral crisis in terms of the American economy as it meant that Alcohol was illegally having to be imported into the US without any taxes being paid to the government to fulfil the demands of consumers which is why Al Capone said he was not a riminal but â€Å"supplying a public demand† and that â€Å"he was a businessmen. † However, Al Capone’s desires to have a monopoly over the illegal American alcohol market led to an increasing moral crisis in America as Capone had stated to kill his competition such as with the killing of Dion O’Bannon in 1926. This had led to gang warfare or gangsterism in America and therefore a corrupt society in moral crisis in this respect. So, the effects of the introduction of the prohibition act such as gang warfare and, consumers who were in many cases very respectable, being left torn on their morals to resort to buying alcohol from illegal sources such as Alcapone available in the black market is what caused a moral crisis. And so in this respect, it is definitely arguable that it wasn’t just a small part of society that was in moral crisis such as Alcapone and gang warfare’s that came about as a result of prohibition but that the majority of American society must have been part of Alcapone and other dealers illegal activity as they were buying his imported goods. The fact that Alcapone had generated revenue which approximated to $60,000,000 is evidence that the whole of American society was part of his illegal activity and thus indicating a moral crisis by going against the law rather than a small segment of it. However, as the prohibition act had eventually failed, there is no certainty to say that consumers who were buying alcohol illegally was an indication of America in a moral crisis in the 1920’s. After all, consumers were simply carrying on to fulfil what they previously were allowed to do illegally and as the act eventually failed, the act can be seen as more of a battle between society and the government whereby society was demonstrating to the government that they just couldn’t prevent alcohol consumption in the USA even if they did illegalise it. Many historians agree that the role of Hollywood in the 1920’s played a major part in changing moral values in the USA, particularly as it had become a major mass entertainment industry. The cinema was perceived as a sense of immorality and quite rightfully it was in advertising gambling and alcohol which were all the things which the government was hoping American society would not be part of, in its attempts through the Hayes code to try and boost efficiency levels amongst the workers by keeping them more active and away from what the traditionalists felt was the devilish attributes which many Americans were moving towards such as gambling and excessive alcohol drinking. How the characters in Hollywood reacted is arguably what sparked off the 1920’s to be an era of liberation rather than a moral crisis as it was these values which many Americans adopted into their daily lives, arguably as part of liberation in the right direction. Dorothy Parker is one of the women who was brave enough to be a role model to other women and encourage them to escape from their current suppressions at home in her attempts to reform American society by making it more liberal rather than arguably remaining in a moral crisis where women were being devalued for what their true capabilities are if they were given the option to express themselves. In fact, the liberating behaviour of the young women in the 1920’s is what enabled more equality to form between the sexes. For example, more women were given higher paid jobs and although they did not earn as much as men during this time, the equality gap had significantly decreased. This is a significant indication that the roaring twenties was quite the contrary to being in moral decline as it had arguably increased the mutual understanding and values for women who, were previously valued to be housewives maintaining the household, to later on play an equal part in the economic world. In fact, the 1920’s had abolished the previous superiority that men used to think they had over women whilst it allowed women on the whole to have confidence in themselves and the freedom to not be dictated by their fathers or husbands. These traditional values marked history during the 1920’s and changed the perception of women in America who had liberated to fashionable hairstyles and the enjoyment with attending clubs such as the Cotton Clubs at night time. The roaring 20’s freed women, therefore, from their previous values and dictatorship of the male species which arguably had brought America out of a moral crisis where women were free from their previous suppression and devaluation. In conclusion, overall, there probably wasn’t a moral crisis in the U. S. but rather change and reformation in the way that society operates away from a traditionalist outlook to society to progressives. The 1920’s in America was arguably a time of exaggeration on behalf of the fundamentalists and marked the difference in generational thinking between the old and the young. The economic boom in that came with the increasingly growing country during this time was what forcibly changed the role of women as they were used in advertisements to promote products to consumers such as cigarettes being renowned as ‘ torches of freedom’ to the women. More importantly, from a rogressives prospective, the changing values of the role of women was actually bringing society out of a moral crisis where women were generally perceived to not have any input in the economic World purely on the basis of their gender. Whilst the 1920’s marked the changing attitudes of society towards women, sex and drinking. The main aspect of society which is, perhaps, evidential of America entering into a moral crisis was the amount of gang warfare that came about due to the amount of immigrat ion into America and the effects of the prohibition act. The amount of racial tension in America in the 1920s which was marked in the Sacco and Vanzetti case is, therefore, one of the key components of the 1920’s which points to America stepping into a racial crisis and therefore a moral crisis, but apart from this on the whole America can be seen to be reforming and passing through a cycle of reformation rather than what it is perceived to be of the older generations of ignorance and that the older generations and fundamentalists were left behind in their ignorance to accept change.

Criminal Profiling: Pros and Cons

Criminal Profiling: Pros and Cons Many people who hear someone say they are a criminal profiler they are inclined to think of T.V. depicted shows such as Profilers, Criminal Minds and movies like Silence of the Lambs. Unfortunately, these examples portray a glamorous classification of capturing criminals (Fulero and Wrightsman, pg.79). Criminal profiling is considered to be the process of analyzing a crime scene and using the information found to determine the identity or features of a perpetrator. Although this does not give you the perpetrators name, it can be helpful in narrowing down suspects. For example, a profiling based on a crime scene provides information that may include personality, sex, age, ethnic background, and possible physical features such as scars, tattoos, birthmarks, or height and weight of the perpetrator. This type of information can be used to identify possible suspects, but it also depends on who fits the profile (www.mtholyoke.edu). The process of psychological profiling was first used as a method in America during the 1950s. Investigators found fascinating patterns and similarities between serial killers behaviors. Selected patterns found consist of the killers having suffered from abuse at a young age. Whether it was sexual or physical this kind of abuse led to abnormal behaviors later on. During a range of young ages through teenage years, they would start fires and they were cruel to animals or other children. Then in the late teenage years to early twenties, were engaging in petty crime and defying authority (www.library.thinkquest.org). According to some, committing serious criminal acts usually starts at about or around the persons mid to late 20s. Particularly at this older age range being able to manipulate victims and show a significance of power or domination is a main motivation for criminals, as well sexual intentions. Murdering someone gives the perpetrator sense of control in which they have never had before. Some criminals feel that they need to relive the events that occurred during the murder or crime, so they take something of personal value from the victim. Such as, jewelry, clothing and they go as far as body parts (www.library.thinkquest.org). Personality is considered by many to be one of the most important parts of criminal profiling. The personality profiles of criminals are the way in which a crime is committed, also known as the method of operations or M.O. The M.O. includes the identity of the victim, what the victim or victims have in common, the weapons that were used, the lack of sympathy, and the sign of any torture and/or sexual molestation. Analyzing these aspects of the crime scene, an investigator can determine the motives of the perpetrator. This can lead to the description of the perpetrators personality, or a personality profile (www.mtholyoke.edu). Appropriately, criminal profilers have methods in which they operate by. According to www.criminalprofiling .ch, there are seven profiling methods and six scientific approaches to profiling of criminal suspects. In the profiling methods, the first is the evaluation of the criminal act itself. Included in the act would be the M.O. and the signature. The signature is in disregards to why he does the acts he does, or the thing that fulfills him emotionally. Then an evaluation of the precision of the crime scene or scenes would be taken. An analysis of the victim or victims is conduced, this is also known as victimology. Subsequently, an evaluation of the preliminary police reports is seized, as well as the medical examiners autopsy protocol. As a result, the set up of a profile with critical offender characteristics is constructed. Lastly, an investigative suggestion to a prediction on the construct of the profile is constructed. The next level is to check with local investigators and propose practical strategies to get the unidentified subject or UNSUB to make a move. Then there are the scientific approaches to profiling criminal suspects. Initially there is profiling inputs. Inside this first stage an accumulation of all information about the crime is pulled together. Information that includes physical evidence from the crime scene, photographs of the crime scene, any autopsy reports and photos, witness testimonies, background information about the victim or victims and police reports. At this stage the criminal profiler does not want to know about suspects because it could cause a prejudice direction to their profile. Second are the decision process models. Within the decision processing model the profiler organizes all information into questions and patterns through many dimensions of criminal activities. Questions such as, what type of homicide has been committed, what is the primary motive of the crime and so on. Third is the crime assessment. Based on the findings of the other stages, the profiler tries to recreate the behavior of the offend er and the victim. For example, as general profiling rules say: vile facial injuries are directed to killers who know their victims, murders committed with any weapon that happens to be available display greater impulsivity than murders committed with a gun and may reveal a killer who lives rather closely to the victim and murders performed early in the morning rarely involve alcohol or drug use (www.criminalprofiling.ch). Fourth is the initial criminal profile. This is where the profiler formulates the scetch of the most likely suspects. The majority of usual profiles include such items as the perpetrators race, marital status, sex, age, where they live, employment history, past criminal records, psychological characteristics and beliefs and values. Fifth is the investigation stage. The investigation stage involves a written report that is given to the investigators that concentrate on suspects matching the profile. Most likely the police have already talked to the suspected but ha d no reason to doubt the suspects testimony. Still, if evidence is introduced at this stage the profile would need to be revised. Preceding the investigation stage is the apprehension stage. Ultimately, the main objective of the stages was to capture the right suspect which in turn leads to the interview technique. With the purpose of getting the perpetrator to confess or talk about the crimes he has committed, this technique can lead to helping in assessing he influences of background and psychological variables (www.criminalprofiling.ch). Investigators putting together a profile use another two approaches inductive and deductive. Inductive profiling imply believing that when a criminal commits a crime they have relate motive or experience of someone who has committed the same type of crime . An example of this is re-offending rapists whose target is white women, more often than not are most likely not to be black. Based on the fact that crimes in the past that have been similar have rarely crossed racial lines. However, these statements have been inquired and have encountered a lot of publicized negative aspects. Deductive profiling involves a process that avoids generalizations and averages. This method involves carefully studying suspects in great detail and changing findings in when new evidence emerges. A deductive profile is established on the offenders actions prior to, in the course of and after committing the crime. For example, if the murderer used a provisional weapon, the investigators are then able to assume that the crime was most likely random. Another example entails serial murderers. At this juncture, investigators are able to find out if the murder was organized. Which means that the killer carried out a planned attack on the victim, or if the attack was disorganized the murder was unplanned and the killer conducted themselves in an inexact way. Organized killers tend to carry a tool kit that has a mask, gloves, duct tape and rope. With these tools they can bind their victims while hiding their identity and not leave finger prints. Criminal profiling is used not only to find possible offenders, but it also helps narrow down a list of offenders that the police have already compiled. Although it doesnt work in every case, criminal profiling has helped investigators to catch many criminals. Through assessing the patterns and motives of previous criminals, criminal profiling allows investigators to accurately predict the characteristics of future and current offenders, which allows killers and other perpetrators to be caught before they can continue on to other crimes (www.wisegeek.com). Predictable, criminal profiling does have disadvantages, or cons. Some cons to criminal profiling involve not being able to identify a specific suspect nor reveal a certain individual, let alone an address or phone number. There are even instances when perpetrators purposely staging crime scenes to throw police and investigators off the right track. In many instances, the profiler will not know that area making more room for erroneous conclusions. Furthermore, profilers tend to have more background knowledge in psychopathology than the little background they have in forensic or criminal knowledge. Hence if the investigators and profilers do not work together it can cause the investigation to go unsolved because the information collected from both parties has not been collaborated. While there are cons or disadvantages to criminal profiling not surprisingly there are the pros to criminal profiling. PC World: Environmental Analysis PC World: Environmental Analysis Environmental Analysis PC World Shop PC WORLD Dublin branch / Electronics Department 2. Terms of Reference On October 2009 Business Management teacher Ms Keran Abberton Requested 2000-2500 words report on the organisation where the students doing their work experience or only other company or organization of their choice. This report was to be submitted by 16th December 2009 in partial completion of Business Management module. I got the opportunity to do my work experience in (PC WORLD) shop, and my assignment will be based on this organisation. 3. Method of Procedure In order to obtain relevant information, the following procedures where adopted: Class notes from Karen Abberton observation in the target workplace, Blanchardstown ‘PC World 2 days a week spent in the â€Å"PC WORLD Blanchardstown branch shop in order to complete 300 hours work experience for my advanced certificate in business course in Ballsbridge College of Further Educations I obtained the information of working procedure from Ken Flynn, the manager of the department. He trained me how to price the products, how to put security tags on the computers and all other products in the store, how to fill out the list of the different product to bring down from the warehouse. He told me the code for the wear house door. He explained to me how to print out the tickets for all products. He taught me to deal with customers and how to organise the stock for the next day. Bassically Ken Flynn introduced me to all working procedures in the shop. I obtained information about† PC WORLD† from the staff and my managers. 4 Findings4.1 Description of organization PC World was founded in November 1991, when a company called the Vision Technology Group Ltd, founded by Jan Murray, opened the first PCW Superstore in Croydon. The 24,000 square foot store specialised in the sale of PCs and computer related products. With PC ownership just beginning to take off, the concept soon proved popular and a second 23,000 square foot store was opened the following year at the Lakeside Retail Park in West Thurrock. Two further stores followed, at Brentford and Staples Corner in north London. At that point, in 1993, Vision Technology Group struck a deal to sell its four PC World Superstores to the Dixons Group plc (DSG). Throughout the 1990s DSG continued to expand the PC World portfolio of stores rapidly. In 1996 it acquired DN Computer Services plc, a direct computer reseller business, operating out of Heywood in Lancashire. This gave DSG the infrastructure it needed to launch PC World Business Direct in September 1997 a new business-to-business IT mail order service incorporating the brand strength of PCW and the sector expertise of DSG. A fully functional transactional website www.pcwb.com followed in 1999. In March 2001, as PC World Business, the company moved into a brand new  £13 million headquarters building and Operations Centre in Bury, Lancashire to meet the growth in demand from the business market. Recent achievements In October 2001 PC World Business was accepted to become an accredited GCat (Government Catalogue for IT supply) Prime Contractor to the Public Sector. In May 2002 PC World Business won two major multi-million pound contracts as a lead supplier and enabler of the Scottish Parliaments (The Scottish Executive) new ‘Digital Inclusion Programme aimed at giving every individual in Scotland better access to online services. Also in 2002 the group acquired Genesis Communications a specialist Business Telecoms reseller to strengthen its business-to-business offering. PC World Business also strengthened its product offering in 2003, with the introduction of a new finance package called SmartPlan. This product, a unique offering in the UK, allows businesses to spread the cost of their larger IT purchases in the form of a lease agreement. In June 2004 Micro Warehouse UK became a division of PC World Business, following the acquisition of the UK Operations of WHSU Inc. and WHSU International Inc. (formerly known as Micro Warehouse Inc. and Micro Warehouse International Inc. respectively) by PC World Business parent company. Micro Warehouse is one of the UKs largest and longest established direct resellers of branded IT products and services to business. Commenting on the acquisition, Simon Turner, Managing Director of PC World Group said This is an important deal that will further consolidate our position in the B2B technology market in the UK. The Micro Warehouse business will add scale to our unique combination of direct selling, national network of Business Centres and cutting edge value added services. (Ref: www.pcworld.com accessed 15th of December 2009) Ken Flynn managing director of Blanchardstown PC World branch. Responsible for inbound and outbound procedures which profit the shop. John OConnor is assistant manager which responsible for all staff workers. Pallav floor manager has pretty much same responsibilities as assistant manager of the floor. Kryzstof he is stock controller in the warehouse responsible for inbound products. Making sure no products arrive damaged. Correct distribution of this stuck. Staff is responsible in the first place correct they provide. I myself am responsible for making sure that no customers a left an attendant. I have to introduce customers to the products benefits and fetchers. To let them know the prices I also help Krzystof in the warehouse from time to time . 4.2 Internal influence on organization The value chain analysis is a very important tool for an organization. It helps to see the companys structure and who is responsible for what. The value chain analysis includes the detailed description of each department of the company. 1. Inbound Logistics: It is the first step of the PC Worlds business. All the goods received by the company are inbound logistics, the stationary. The stock arriving in the warehouse. 2. Operations are the value creating activities that transform the inputs into the final product. 3. Outbound logistics are the activities required to get the finished product to the customers, including warehousing, order fulfillment, etc. 4. Marketing Sales Are those activities associated with getting buyers to purchase the product, including channel selection, advertising pricing, etc. 4. Service activities are those that maintain and enhance the products value including customers support, repair services, etc. (www.valubasedmanagement accessed 10th of December) Any or all of those primary activities may be vital in developing a competitive advantage. For example, logistics activities are critical for a provider of distribution services, and service activities may be the key focus for a firm offering on-site maintenance contract for office equipment. These five categories are generic and portrayed here in a general manner. Each generic activity includes specific activities that vary by industry. (www.valubasedmanagement accessed 10th of December) 4.3 External influence on organisation PEST analysis It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organizations marketing environment is made up of: PEST Political Factors. The political factor has a huge influence on any businesses in the country it runs in, and also on the spending ability of consumers. The following issues should be considered. Law of employment Will government policy influence laws that regulate or tax your business? Impact of environmental regulations. Recycling charges. The employment law in PC World shop is followed according to the rules and regulations of the employment Act. I was trained for safety and fire situations. I got paperwork with the detailed explanation of my duties and entitlements. If the government changes the tax law to higher rate it means that the shop has to rise the prises on the goods and it means less sales which is a loss for the shop. Economic Factors. Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. You need to look at: If interest rates go up it will influence the income of the company. If level of inflation is low than the consumers confidence is low. VAT rates it is being discussed that VAT rate will be increased on tomorrows budget; if it happens than potential customers will be provoked to do their shopping across the border. Socio-cultural Factors. The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include: An Irish website, www.cso.ie gives information about the population of the country. Marriages, deaths, births and so on. It is important that population grows because in 10-15 years a generation will be old enough to use most new technology. There always will be a huge demand in newer versions of computers, IPods, TV-sets and so on. This is what people want and the higher the population is the better it is for the technology selling shops. Nearly all the goods in the shop are imported from different countries. The main country of import is China, customers are aware of the fact that most of the goods in the country are imported and it never was a concern. A bigger concern for the customers is which country were the goods released by. Career attitude Younger people are more educated in regards to the new technologies and of course it is easier for a younger generation to find a job rather than someone older, because they will need to be trained. Younger people know exactly what they want, what type of computer, TV, DVD-player and so on. Kids digital games, play station, Nintendo games and so on. Business owners can get all the information from the website mentioned above and use it as a guide of purchasing certain goods during different years for sale. Technological Factors. Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points: Does technology allow for products and services to be made more cheaply and to a better standard of quality?Do the technologies offer consumers and businesses more innovative products and services?How is distribution changed by new technologies?Does technology offer companies a new way to communicate with overseas agents? Technology has a huge impact on selling performance in any business. PC World Dublin is now looking into introducing online shopping. It makes the goods to be purchased cheaper and more convenient for the customers. England PC World has already implemented this procedure and it has a great success. PC World shops always offer its customers more innovative products for sale. More up to date and newer goods as they are in huge demand as I said before. Distribution can ease customers life as already said online shopping. Telephone sales. PC World can easily get in touch with its agents in England order an item and let the customer know the day it will be available for collection. As you can see the PEST analysis is a very important tool for an organisation. It lets the management of the company see the weak sides of the business they run and predict the sales for the nearer future.Porter Five Forces A porter Five Forces Analysis is an important marketing planning tool for looking at the competitive environment that affects a business. Understanding the competitive ability of the industry is critical to the companys potential success. The model is illustrated here: Threat of New Entrants In the first of the five forces, new competitors in industry can raise the level of competition, reducing its attractiveness to current members. The threat of new entrants depends on how strong is the barriers to entry. Business like restaurants, hotels, local shops have very low barriers to entry of the new competitors. At present the threat of new entrants into the industry of PC World shop is very low. Even when the economy was growing not too many new entrants appeared in the market of Technology selling industry, I doubt there will be any now. So we can say that PC Worlds barriers to new entrants are quite high. Threat of Substitutes The substitute of the product is not very high because as we know in the first place PC World is part of the Currys stores, which also include Dixons, so even if a customer cannot find the product he needs the choice of the technology selling stores is one of the three mentioned ones or Power City. Customers may switch to buy a good in a shop which has the product they need regardless their wonderful, previous experience with PC World shop. So we can see that PC Worlds weak point is lack of variety of the products and if Curys and Dixons werent part of the shops co-working with PC World than PC World would have very low barriers of Product substitute, it would be easy for customers to switch to a different shop, but it would be painful for the store. Power of Suppliers Suppliers are defined as the businesses that supply materials other products to the businesses within an industry. I am not sure who exactly supplies the products for PC World I presume it is China but would say for sure which company or producer. I wouldnt take the responsibility to judge on this topic because of my lack of knowledge in this area. Power of Buyers Buyers are the people and/or organizations who create the demand in an industry. They are the target of any business. They are the reason of the business existence. In the present economical time it is definitely the buyers time. And PC World as a buyer has it power upon its suppliers at present, unless the supplier is the only one in the industry market than he can dictate the rules and have complete power upon its customers. Anyway PC World has to lower its prices at the moment to meet the customers financial needs. Intensity of Rivalry The fifth of the five forces, the intensity of rivalry between competitors in an industry, depends chiefly on: The structure of competition a rivalry is more intense where there are many small or closely-sized competitors; a rivalry is less intense when an industry has a clear market leaderan alternative supplier Strategic objectives when competitors are pursuing aggressive growth strategies, rivalry becomes more intense; when competitors are milking the profits in a mature industry, the degree of rivalry is lowerExit barriers when the barriers (such as the cost to close down factories) to leaving an industry are high, then competitors tend to show a greater degree of rivalry www.marketingteacher.com ( accessed on the 5th of December 2009) As mentioned already there are not too many competitors in the computer selling industry which means the intensity of rivalry is not that high. The competitors which exist are not taking any extra actions which may dramatically and negatively influence the store strategies and selling abilities. All the shops have pretty much the same prices, products, offers which makes all competitors be stable in the market. 4.4 Internal/external influence on organisation Swot Analysis Strength: Staff a well trained and qualified staff with many years of experience. Profitable The business itself is very profitable. Technology is civilisation. And this type of product will always be in big demand. Shop location is very handy. Most of the shops are located in easy to reach areas. In big and busy visited shopping centres. Growing the business is growing fast as the products of the company are in very big demand. Weaknesses: Lack of new products New products could be introduced in some of the branches. PC World does not sell domestic technology. (EX: washing machines, dishwashers, fridges etc.) Price Sometimes prices on some of the products are higher than in the other shops. Staff some staff representatives have lack of knowledge about technology and about the products of the shop. Macro Analysis External analysis. Opportunities: New products- the introduction of new products can increase sales. Funding Investment in staff training, well trained staff means increase of sales. Service A good high quality service will make the customers come back again and again. Threats: New competitors Power City is a competitor. If they open more stores around the city it will interfere with the selling procedure of PC World. Redundancy in the present recession times people are losing jobs which reduce their ability as a buyer. Economy Present economical situation influences sales in a negative way. 5 Conclusions Blanchardstown PC WORLDs goal is to sell quality product and satisfy fully its customers needs. Company policy is designed to ensure that the company can attract, recruit, develop and retain people of the type and calibre it requires to achieve this aim Blanchardstown PC WORLD policy is to recognise and reward the potential of each individual employee and to encourage personal development and career progression. Therefore promote internally wherever possible. Blanchardstown PC WORLDs aim to exceed customer expectations. The vision of PC WORLD is to be the best and most exciting Department Store in Ireland. It is their mission to ensure that PC WORLD in the Department Store of first choice for discerning Electronics middle market customer 6 Recommendations I have to say that I was extremely happy with my experience in PC WORLD shop. The customer service staff which seem to be the same people working every weekend I dealt with seem to be pleasant and helpful every time. I found high value goods for little money. I would recommend other student if they can use the opportunity to work in this shop as this is a rich experience in business field.

Essay on Maggi

Essay on Maggi Background Maggi Noodles In the last 20 years we have Just asked 2 minutes of your time. The Brand which clearly comes to mind on first recall is Maggi Noodles. Maggi Noodles is manufactured by Nestle under instant noodles portfolio. It was introduced with Maggi 2 Minute Noodles in India in 1982 when the only place to get noodles was Chinese restaurants. Maggi has undoubtedly has been the lifeline of many teenagers when in home or away from home. Maggi, as a brand, has seen many competitions in its Lifecycle. The brand has also diversified itself with launch of product ranges like soups, tomato sauce, seasoning, cup noodles, various flavours of maggi noodles like atta, rice, mized grains etc. Nestle remains its market leader position with 59.84% of retail sales in India,2009 (Source: Euromonitor International). But its market share is constantly eroded by new entrants like GlaxoSmithKline Consumer Health with Foodles,Capital Foods with SmithJones Instant noodles, HUL launching its Soupy Noodles under Knorr B rand umbrella. Brand Identity Kapferers Model Picture of Sender Physique Yellow Coloured Pack, 2 minute Noodles, fast to cook good to eat, Maggi Logo, Healthy Snack between meals Relationship Taste bhi Health Bhi, providing convenient food within 2 minutes with health and hygiene factor, caring and nurturing Reflection Health Conscious individual who is Hard pressed for time, Young and Fun loving, living with family Personality Enthusiastic, simple, uncomplicated, easily accessible, Fun loving, carefree, On the move, busy schedule Culture   Reliable, Innovative, Aspirant Lifestyle for rural areas, Sharing happiness, responsible Self-Image Young, trendy, fun loving, Independent, Healthy inspite of Sedentary Urban Lifestyle Picture of Recipient Stages in PLC Maggi Noodles is currently in growth stage after passing through maturity stage for brief period in mid 1990s. Introductory and Initial Growth Stage Maggi Noodles brand was in introductory and growth stage in 1982 1990s.Maggi took advantage of its early movers advantage in closed economy scenario prevalent in India during 1980s. The brand faced less competition due to few similar products available in the market. Brand Maggi made best use of the time to increase its brand awareness by focussing on product advertisement. The communication which was initially mis-directed towards women was shifted rightly towards children Maggi Noodles sponsored Hum Log, Indias first indigenous soap opera which began telecast on July 7, 1984. Maggi was launched with total advertisement slots of just 5 minutes during the breaks of serial which ran for over 156 episodes. This helped Maggi to establish as a popular breakfast and snack food across the country. This was also one the first instances of introduction of Fast Food in India. Growth Stage Maggi Noodles brand was in their growth stage in 1990s till late 2006 with brief period of declining sales due to faulty product innovation and formulae change from conventional maggi noodles in the form of launch of Dal Atta Maggi Noodles to noodles similar to TopRamen Noodles, noodles from stable of IndoNissinFoodLtd. Maggi was quick to revert back the original formulae to minimize damage. Product: New Product Variants like Atta Noodles, Mixed Grain Noodles and Rice Mania were introduced Source: http://www.maggi.in/maggi_multigrainz_noodles.aspx There was change in packaging for different variants of the noodles and launch of new variants Image Source: http://www.maggi.in/two_minutes_maggi_noodles.aspx Image Source: http://www.maggi.in/vegetables_atta_noodles.aspx Price Price was kept competitive with other launches in the market like Nissins Top Ramen Promotion Maggi was launched in different packages of 50 and 100 gms to increase the consumer base and attract the first time consumers Variants like Cuppa mania was launched to cater to mobile population, office goers Source: http://www.maggi.in/cuppamania.aspx Offering freebies like collectible foreign stamps, other freebies with maggi packs Maturity Stage Post 2009, there has been host of new entrants in the instant noodles market in India. ITC Launched its instant noodles under Sunfeast brand. GlaxoSmithKline consumer health and HUL also introduced instant noodles in 2010. The communication from Maggi has shifted from 2 minute noodles to Taste bhi Health bhi through introduction of variation in instant noodles. The competition has led to gradual fall in market share vis-a-vis other new entrants. New players are innovating in product packaging like launching noodles in circular shape so as to enable users to enjoy their noodles in full length. Market Scenario/Challenges Major challenge is to maintain the market leadership of Brand Maggi in increasing market with varied new entrants having strong market presence in other product variants. To be increasingly viewed as the most preferred snack by new generation Strategy to increase Rural market share through launch of Maggi Rasile Chow targeting low income population Change of consumer taste from taste to health conscious Masala Flavour is the leading flavour in instant noodles in India All new players have also introduced masala flavour in their brand Chicken is the second favoured flavour followed by vegetable and tomato Horlicks Foodles claim to provide five essential vitamins in their noodles which forces the major market players to stress heavily on the health factor associated with their brands HUL Knorr Soupy Noodles claim to be healthy snack between meal for children Need for elaborate Market research for Maggi Brand on attributes like Brand Image, Prefered Price, Taste, packaging, Health, Availability, Ingredients, product variety etc. Steps taken at different stages Extensive media advertising to increase the consumers familiarity with new product launches Wider flavours/varients being offered to cater to wide range of consumers Increased product penetration through availability in supermarkets, hypermarkets and kirana stores Product line extensions and repositioned products launched to engage new and changing consumer demographics Market Research was conducted to understand the General promotional strategies were implemented to increase brand visibility Events Online Maggi recipe Challenge, innovative entries were compiled into e-cookbook Launch of Me and Meri Maggi Campaign enable consumers to share their experience with Maggi and creating a nostalgic effect by letting them share their moments with Maggi . Launching Maggi goodies like Computer Wallpapers and ScreenSavers to increase Brand recall , Website- http://www.maggi.in/ Preity Zinta was roped in for brand endorsement. Maggi was tried to position it as lively brand with zing Summary The Brand Maggi is strongly established as a Family Brand with crisp brand equity in Indian market. The brand has always been known to have the first movers advantage in the portfolios like noodles, ketchups, soups, sauce, etc. The parent brand Nestle has been the strong symbol of family, shelter and warmth which brand Maggi has innovatively capitalized. Evolution in communication Brand Maggi has changed its communication from convenience factors ie Bas 2 Minute to Taste Bhi Health Bhi to stress on health factors along with taste and convenience. There was a shift from TG from women to children as their consumers. To increase the Point of Purchase Sales, Maggi innovated in Shelf placing by placing Maggi in lower shelfs to increase the visibility by Kids who accompany their mothers to shopping. Maggi has launched Chota Maggi worth Rs 5/- to increase product trail. Maggi was positioned as snacks for between meals to boost sales and attract new customers without changing their conservative food habits during meal time. Maggi also introduced contests for posting best recipes to be made with Maggi. The future of noodles sectors seem good with growth in retail sales of 19% in 2010 in value terms and forecasted to grow at12% CAGR over next few years.Being a sector with low entry barrier, the segment share is vulnerable to new entrants like in-house brands of BigBazaar retail chains of Future group, More of Birla Group, Star Bazaar from TataGroup etc. and host of foreign players entering the market lately. Major Noodles manufacturing firms market share: (Source: EuromonitorInternational Report) Figure : Market Forecast for Noodles market in India Recommendations for Brand Maggi Proliferation into untapped rural markets through strong distribution channel available in India Product line extension with variants for varied markets Innovation in Product, packaging and pricing of Maggi Noodles through investment in Market Research Launching health awareness campaigns, publish health information, sponsor health camps etc. to educate the customers about benefits of health foods To engage customers more through evolving mediums like social networking sites etc.This would enable the Maggi Brand Managers to listen to reviews from their customers and improvise any other suggestions if needed.