Ditra Companys Environment

Introduction Ditra is one of the leading firms in the UAE’s home and personal care industry. It was established in 1977 in the UAE as part of the Al-Batha group. The firm manufactures and sells various brands of home and personal care products using the most advanced technologies (Ditra 2012).Advertising We will write a custom essay sample on Ditra Company’s Macro-environment, Competitive Environment and Internal Environment specifically for you for only $16.05 $11/page Learn More Ditra’s main products include chemicals, aerosols, detergents, disinfectants, and floor cleaners among others. In the last three decades, the firm has achieved organic growth, thereby joining overseas markets in the Middle East, the GCC region, and Africa. The firm has 100 employees and an annual sales turnover of $25 million (Ditra 2012). Ditra’s strategic objective is to double its growth in the next three years. This paper provides a strategic ana lysis of Ditra. The analysis will focus on the firm’s macro-environment, competitive environment, and internal environment. Based on these analyses, strategic recommendations will be made to help the firm to achieve its growth plan. Analysis of the Macro-environment Political Factors Tax policy and foreign trade regulations are the most influential factors in the industry. The federal government of the UAE does not impose taxes on corporate profits, personal income, and capital gains. Corporate taxes are only applicable to oil and petrochemical firms, as well as, foreign banks (Nyarko 2011, pp. 221-229). The corporate tax exemption improves the competitiveness of local firms by enabling them to utilize a large percentage of their profits for expansion activities rather than paying taxes. Similarly, personal income tax exemptions increase the citizens’ disposable income, thereby improving the demand for home and personal care products. Nonetheless, the government intend s to introduce value added tax by 2014. As a member of the General Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO), the UAE promotes free trade by eliminating tariff barriers. In this regard, the government levies only 10% importation tax on luxury goods and 4% on other imports (Nyarko 2011, pp. 221-229). Since the UAE is a member of the Gulf Cooperation Council (GCC), its companies can benefit from low import tariffs (5% import duty) in the region Economic Factors Rapid economic expansion is one of the most important drivers of growth in the home and personal care products industry. The UAE is the third largest and one of the fastest growing economies in the Middle East and North Africa (MENA) region. In 2011, the country’s GDP expanded by 4.2% (Nyarko 2011, pp. 221-229). Furthermore, it has been able to maintain an average economic growth rate of 4.6% in the last five years.Advertising Looking for essay on business economics? Let's see if we c an help you! Get your first paper with 15% OFF Learn More In 2011, the GDP per capita was approximately $48,158 and the unemployment rate was less than 1.4% (Nyarko 2011, pp. 221-229). These trends means that majority of the citizens have a high purchasing power. Hence, most of them can afford various home and personal care products. Access to financial capital is relatively easy in the UAE due to low interest rates. In the last five years, the average interest rate was 1.4%, thereby enabling businesses to access credit facilities for expansion. In order to achieve its economic diversification plan, the government supports non-oil businesses through subsidies and development of transport and communication infrastructures. Social Factors According to the 2007 estimates, the population the UAE is 4.4 million people. The country’s annual population growth rate is 4% (Nyarko 2011, pp. 221-229). The factors that underpin this rapid growth include increased immigration, bo oming economy, and social policies that encourage large families. The working class constitutes 78.5% of the population (Nyarko 2011, pp. 221-229). Thus, the level of dependency is very low. Furthermore, the percentage of the population that lives below the poverty line is negligible. Hence, consumerism is very high in the country. Unlike most Islamic countries, the UAE has little restrictions on citizens’ behavior. The resulting increase in westernization has led to a high demand for personal care products, especially, among the women. The country’s literacy rate is as high as 90% among the adults. Consequently, most citizens are aware of the side effects of consuming various personal care products. This sensitivity to product quality presents production challenges to most manufacturers. Concisely, only high quality products can penetrate the market. Technology Technology is important in the home and personal care products industry. This is because it determines produ ct quality and production efficiency. However, investment in research and development (RD) in the UAE is still low compared to other countries. For example, only 133 patents were registered in the UAE in 2010, whereas 804 patents were registered in Saudi Arabia in the same period (Nyarko 2011, pp. 221-229). Low investments in (RD) and poor technological transfer reduces the competitiveness of local manufacturers.Advertising We will write a custom essay sample on Ditra Company’s Macro-environment, Competitive Environment and Internal Environment specifically for you for only $16.05 $11/page Learn More Legal Factors The UAE lacks effective anti-trust laws. The country’s regulations focus on controlling sharp changes in prices rather than monopolistic tendencies. There are no laws that prohibit firms from acquiring their competitors in order to gain dominant positions in the market (Nyarko 2011, pp. 221-229). Hence, the competition in the hom e and personal care products market is very high. Analysis of the Competitive Environment Threat of New Entrants The threat of new entrants in the industry is moderate due to the following reasons. Most manufacturers have multiple production plants in the Middle East, which enables them to enjoy economies of scale. Consequently, most of the incumbents are able to sell their products at low prices. This reduces competition from new entrants who lack economies of scale in production. Furthermore, product differentiation is very high in the industry (Accenture 2011, pp. 2-11). New entrants lack market experience, and the technology that is necessary for product differentiation. Consequently, their products are less competitive. One factor that increases the threat of new entrants is lack of entry barriers in the industry. Free trade policies have led to the entry of numerous regional and international firms in the industry. The implication of the moderate threat of new entrants is that the incumbents have the opportunity to expand their operations in order to serve the entire market. Power of the Suppliers The suppliers have a low bargaining power due to the following reasons. To begin with, the industry has very many suppliers who are competing for the small number of manufacturers. This competition limits the suppliers’ ability to charge high prices for their products. Advancements in analytical and industrial chemistry have led to the development of several substitutes for the suppliers’ products. Consequently, monopolistic tendencies are not rampant in the suppliers’ industry. In most cases, the suppliers’ products lack differentiation. Concisely, the suppliers sell products whose qualities are more or less the same. Finally, numerous small firms supply most of the raw materials (Accenture 2011, pp. 2-11). These firms lack the financial capital that can enable them to invest in the production of home and personal care products. Thu s, the threat of forward integration is low. In this regard, the suppliers cannot exploit the buyers (manufacturers) through high prices or low product quality. Power of the Buyers The buyers (manufacturers) have a high bargaining power in the industry due to the following reasons. First, there are few manufacturers compared to suppliers. This increases competition in the suppliers’ industry. Hence, most buyers are price givers rather than price takers. Second, the buyers have low switching costs.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Concisely, they can easily shift from one supplier to another without incurring high costs. In this regard, manufacturers obtain their inputs only from suppliers whose products are cheap and meet high quality standards. Finally, the threat of backward integration is high. For instance, some manufacturers such as Falcon Pack are able to produce their own packaging materials (Accenture 2011, pp. 2-11). Even though the suppliers’ products lack differentiation, they are very important since they determine the quality of manufacturers’ products. Thus, buyers’ bargaining power is likely to decline if they cannot find substitutes for the inputs that are fundamental in their production. The high power of the buyers means that Ditra and its competitors can easily negotiate for low prices and high quality for their inputs. Threat of Substitutes Lack of trade barriers has led to the entry of thousands of different brands of home and personal care products in the United Ara b Emirates market. Most of the brands are from western countries where technological advancements and intense competition have led to high product differentiation (Accenture 2011, pp. 2-11). Brands from China and India tend to be cheaper than locally produced products. Consequently, the rate of brand substitution is very high in the market. The substitution is based on price, perceived product quality, and the side effects of using the products. For example, most women are substituting synthetic personal care products with herbal ones because the former are associated with high health risks. Hence, the threat of substitution is high in the industry. In this regard, companies whose products do not meet the expectations of the customers are likely to lose their market shares and make huge losses (Winer Dhar 2010, p. 431). Competitive Rivalry The intensity of competitive rivalry is very high due to the following reasons. To begin with, the industry has very many producers who are comp eting for the same customers. Consequently, most producers are focusing on product differentiation in order to defend their market shares. One factor that boosts the performance of the incumbent firms is the industry’s high growth rate. The industry’s growth rate averaged 8% in the last three years (Accenture 2011, pp. 2-11). Nonetheless, the benefits accruing from this rapid growth is likely to diminish as more foreign firms join the United Arab Emirates market. The high competition is likely to lead to price reductions, thereby reducing Ditra’s profits. Analysis of the Internal Environment Strengths Ditra’s strengths include the following. The firm has been able to produce a wide range of products through research and innovation (Ditra 2012). This enables it to defend its market share. Furthermore, providing a variety of products has enabled the firm to join new markets. Ditra has a strong brand image that is associated with high quality, reliability, a nd acceptable safety standards. The resulting improvement in brand loyalty has enabled the firm to retain its customers. Finally, Ditra has multiple distribution channels that consist of wholesalers and retailers in the UAE market. Consequently, the visibility of its products is high. Weaknesses Ditra has the following weaknesses. First, it has been able to breakeven with difficulty in the last three years (Ditra 2012). This means that the firm is not competitive in the markets in which it operates. Furthermore, it is not likely to have adequate capital to finance its expansion plan if it is struggling to breakeven. Second, Ditra does not have its own distribution networks in foreign markets. It depends on third party firms to distribute its products in the overseas markets. Reliance on third party distributors is likely to reduce the firm’s control of its products in the overseas markets. Finally, Ditra over depends on the UAE market, which accounts for 60% of its sales. In this regard, any changes in the market that might have adverse effects on sales will significantly reduce the firm’s profits. Opportunities The low power of the suppliers is an opportunity for Ditra to negotiate for low input prices. The industry’s high growth rate also provides expansion opportunities (Accenture 2011, pp. 2-11). Thus, Ditra can increase its production in order to earn high profits. Similarly, the low import duty in the GCC region is an opportunity for growth through exportation. Finally, rapid economic expansion in the UAE and the Middle East region will lead to rapid growth in the industry. Hence, Ditra can take advantage of the expected increase in demand for home and personal care products. Threats The high competition in the industry is likely to reduce Ditra’s profits and market share. Similarly, the high threat of substitutes is likely to reduce Ditra’s sales, especially, if the competitors are able to produce superior products. Fi nally, low investment in RD is a threat to the firm’s future expansion plans (Nyarko 2011, pp. 221-229). Concisely, Ditra will not be able to develop superior products through innovation if technological transfer remains low in the industry. Strategic Recommendations Ditra intends to expand its operations by adding soap and personal care items to its product portfolio by 2013. The firm’s objective is to achieve a target of $10 million by selling the soaps. Additionally, it expects to earn a profit margin of 20% by selling the soaps. Based on the external, competitive, and internal environmental analyses, the following recommendations can help the firm to achieve its objectives. Product A clear understanding of the market needs that are to be satisfied will be necessary before launching the new products. Thus, it will be necessary to conduct a market research in order to identify the features that the customers are looking for (Winer Dhar 2010, p. 231). Based on this r esearch, the firm should manufacture soaps that meet customers’ expectations in terms of size, color, functionality among other features. The soap must be superior to its substitutes in order to overcome competition. Place Most customers usually buy soaps from retailers such as supermarkets and convenient shops. Consequently, Ditra has to establish an effective and efficient supply chain that links its production plants with the wholesalers and retailers. In this regard, the firm should establish its warehouses in strategic locations in order to improve distribution efficiency. Furthermore, a sales team will have to work with the retailers in order to obtain customers’ feedback concerning the product’s quality and availability (Winer Dhar 2010, p. 235). Establishing overseas distribution networks in terms of warehouses and sales offices will enable the firm to track the product’s performance. Price The industry is associated with high competition, and th e customers are price sensitive. In this regard, adopting the penetration pricing strategy will enable the product to gain market share within a relatively short period (Winer Dhar 2010, p. 240). Concisely, Ditra can increase the market share of its soaps by charging lower prices than its competitors charge. Additionally, the pricing strategy must take into account the customers’ perception of the value of the soap. The soap must not cost more than the customers are willing to pay. Promotion Promotional activities will help the company to create awareness about the soap. In this regard, it will be necessary to advertise the soap in print and electronic media in order to reach a large number of potential customers. Similarly, discounts and free samples will encourage customers to purchase the soaps. The promotional activities must be different from those of the competitors in order to achieve the desired results (Nyarko 2011, pp. 221-229). Promotional activities that lack dif ferentiation are not likely to attract potential customers. Conclusion The opportunities in Ditra’s external environment include low power of the suppliers, high industry growth, low import duty in the GCC region, and rapid economic growth in the UAE. The threats include high competition and threat of substitutes, as well as, low investment in research and development. Ditra has a strong brand image and ability to produce a variety of products. Additionally, it is able to increase the visibility of its products by using multiple distribution channels. However, it struggles to breakeven and over depends on the UAE market. By leveraging its strengths and minimizing its weaknesses, Ditra can successfully avoid the threats and take advantage of the available opportunities. Thus, it will be able to achieve its objective of launching new products in the market. References Accenture 2011, Achieving High Performance in Home and Personal Care, Euromonitor, London. Ditra 2012, Company Profile. Web. Nyarko, Y 2011, ‘The United Arab Emirates: Lessons in Economic Development’, Studies in Economics and Finance, vol. 24 no. 4, pp. 221-229. Winer, R Dhar, R 2010, Marketing Management, McGraw-Hill, New York. This essay on Ditra Company’s Macro-environment, Competitive Environment and Internal Environment was written and submitted by user Sidney Frederick to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Strategic Analysis SWOT Analysis of Starbucks Corporation The WritePass Journal

Strategic Analysis SWOT Analysis of Starbucks Corporation INTRODUCTION Strategic Analysis SWOT Analysis of Starbucks Corporation INTRODUCTIONOVERVIEW OF STARBUCKS COFFEEStore Expansion Strategy of StarbucksFINANCIAL CRISIS AND COMMODITIZATION OF THE BRANDIssue ReasonsSTRATEGIC MARKETING MANAGEMENT TO SOLVE PROBLEMSSWOT AnalysisRe-energizing Starbucks ProcessRECOMMENDATIONS  FOR FUTURE STRATEGYCONCLUSIONRelated INTRODUCTION Starbucks brand name is  one of most admired famous global business in the world (Moore, 2006, p.7). Moreover, in terms of marketing, Starbucks always is the case study for discussing about it successful marketing and branding strategies.  Because of the fall of the economy,  it  was  forced to close 700 stores that were  unable to make  enough profit  and cut thousands of jobs in America, UK, and Australia  after a drop in sales  in 2008.  The brand was  also facing the issue of their customers choosing a cheaper option over their higher coffee prices.  Starbucks  then  was  applauded  for their handling of crisis situations. This report will apply  relevant theory and practice of  strategic marketing  management to  explore the situation, contributing factors and management of marketing strategies in the financial crisis sector,  reflecting the happenings and identifying recommendations relevant to Starbucks International Coffee. OVERVIEW OF STARBUCKS COFFEE The Seattle-based Starbucks Corporation, which founded in 1971, is nowadays a multinational coffee and coffee house chain with over 15,000 stores in  in all 50 states and   43 countries outside of the United States  (Pham, 2008, p.8).  Serving consumers everywhere (Moore, 2006, p.12.), the aim of Starbucks is  to establish and leverage its powerhouse premium specialty coffee through rapid expansion of retail operations, new distribution channels and successful make it coffee a global product for millions customers. At Starbucks Coffee, the mission is []  to inspire and nurture the human spirit one person, one cup, and one neighbourhood at a time. (Clampitt, 2009). Starbucks  has been and always be  proud of their commitment to maintaining quality, integrity, and great taste of coffee through the course of its growth  and the high value placed on the employees/partners worldwide  (LeFort, 2008)  . Store Expansion Strategy of Starbucks Throughout the 1990s,  Starbucks  had started  developed a  Ã¢â‚¬Å"three-year geographic expansion strategy†Ã‚  (Clampitt, 2009) then  Starbucks store launches grew more successful  in revenue  (Creamer, 2007).  Ã‚  Not just selling the coffee,  Starbucks model  with opening new stores next to doors and inside shopping malls  caused them to increase in value  than all other competitors  (Cebrzynski, 2007)  Ã‚  In 2004, Starbucks announced to analysts that it had a  Ã‚  very aggressive target to  double its rate of expansion. Their stated goal was to grow to 15,000 stores in the US.  According to the report in an article,  Starbucks has more than 13,000 locations around the world, and has  overstretched itself with the  long-term goal of 40,000 stores worldwide  (Woodward, 2007,  Clark, 2008).  Appendix 4, 5, 6   There is a raised question that  whether it is a bad business decision for coffee chain Starbucks to expand its brand too quick.  (Cebrzynski, 2007) is also suspicious that  has  Starbucks lost its â€Å"Starbucks experience† by growing that big? (Business: Trouble brewing, 2007)   FINANCIAL CRISIS AND COMMODITIZATION OF THE BRAND A crisis, according to  Ã‚  (Brown, 2003)  is â€Å"a decisive moment†, â€Å"a turning point†, â€Å"a time of great difficulty†, then marketing cannot possibly be in crisis.  Mr Schultz, Starbuckss CEO, saw the crisis coming. He had discovered the problem of their own development strategies: Stores no longer have the experienced soul with the warm feeling of a neighbourhood store. At the beginning of 2007, he did warned about the commoditisation of the brand that the expansion from 1,000 to more than 13,000 shops over the past ten years, in order to achieve the growth, development, has led to a series of decisions that make a watering down of the Starbucks experience. (Businessweek. 2007). The decline of Starbucks is the result of over expanding previous years, has been criticized by those who oppose globalization such as ( Klein, 2009): Instead of opening giant stores on the outskirts of town, Starbucks chooses locations right in the range of the inner a rea already full with all kinds of coffee house. This strategy relies heavily on the cost reduction by purchasing multiple quantities at wholesale prices like Wal-Mar, however, affected more by the competitors† The rapid growth has obviously caused Starbucks some problems.  For the first time  in its  37-year-  history  Starbucks lost customers and profits collapsed 97% (Jagger, 2008)  during the fourth quarter of 2007  after the ubiquitous coffee chain was forced to absorb the effect of weakening demand.  The  footfall had declined in the UK,  where it has two other big coffee retailer: Whitbreads Costa and Caffà ¨ Nero as well,  -$6.7 million after tax,  compared with a $158 million profit for the same quarter last year. (Lee, 2008).  Although company officials still do not believe growth is an issue  (Cebrzynski, 2007),  first time in five years, Starbucks was  knocked out of first place in the coffee-and-doughnuts category by Dunkin Donuts  (Creamer, 2007). And it was the biggest faller in the index by 7 points to 42 out of a possible 100.  (Leroux, 2008) Issue Reasons As  (Schindehutte  et al.,  2008) argues that  [] something is clearly affecting the ability of firms and business units to sustain performance  ), suffering from a rough economy and its own strategic missteps,  Starbucks had to admit their own mistakes, much of which  is self-inflicted  (Ignatius, 2010)  In current economy,  as a  classic dilemma of any big business, while trying to expand, Starbucks not only have to deal with other factors like competitors and the mortgage crisis, they also competing with themselves.  Size may have brought success to Starbucks, but it has also led to issues of brand depersonalisation.  In the rush to open more stores, Starbucks is experiencing what all successful brands do when they move from being a small, niche firm to a global entity  (Golding,2009). Moreover, there are some extra affections from the environment, such as: The brands bottom line has been hit by the rising costs of raw materials. â€Å"[] now Starbucks isn’t for some people† said  Howard Schultz,  CEO of Starbucks (Not enough froth Starbucks, 2008). Fancy Starbucks coffee has also struggled to compete with cut-price rivals such as McDonalds and Dunkin Donuts, as these traditionally food-focused outlets have begun to sell their own premium and reasonable coffee offer (Clark, 2008).   As the financial crisis has spread to the real economy,  a perfect storm of negative factors affecting the consumer  (Cebrzynski, 2007).  The flagging economy and soaring gas prices are responsible too  (Leroux, 2008).  Ã‚  Consumers are worried of rising gas prices, energy bills,   declining home values, the weak dollar, tighter credit, therefore  giving hard consideration to how they spend their money. They even already  scale back on restaurant dining that made  restaurants are slowly creeping out of their thoughts. STRATEGIC MARKETING MANAGEMENT TO SOLVE PROBLEMS Crisis management is much more than coping with a crisis, it is identifying, studying, forecasting, stopping and avoiding crisis as well. (Clampitt, 2009)  Continuous improvement and monitoring in business operation can detect and prevent an upcoming crisis (Rhee Valdez, 2009).   Effective marketing can contribute to a firms growth through better anticipation of market opportunities, calibration of risks, a tighter linkage of technological possibilities with market concepts, and faster adjustment to shifting market needs and competitive moves. (Day, 2003)   For their part, market-driving firms such as Starbucks is demonstrating how business model innovation results in sustainable advantage and superior long-term performance in a wide range of industries.  (Schindehutte  et al.,  2008).  When a crisis or disaster strikes, companies must analyze and choose from many strategic plans.   One way they do this is by using a SWOT analysis – a strategic planning tool u sed to evaluate Strengths, Weaknesses, Opportunities, and Threats.    The goal of a SWOT analysis is to identify key internal and external factors that affect the desired outcome.    Strengths and weaknesses are internal to the company and include things like wage/benefits, corporate culture, leadership, marketing, and operations.   Opportunities and threats are external to the company and include things like government regulations, competition, and economic and social forces.  (Clampitt, 2009)  The focus for the strategic management to understand the market and industry processes of Starbucks and must be able to integrate valid and reliable SWOT analysis so as to determine future strategies for business development and growth in the global market. SWOT Analysis The SWOT analysis will provide enough awareness for the Starbucks and its business management and operations with regards to their strategic management implying relevant points for their resources as well as market approaches and processes in order to stay in shape and in control of their business environment.  Applying a SWOT analysis to Starbucks global expansion strategy shows why they have been successful overcome the crisis.  Appendix 7 The business strategy of Starbucks is identical to the corporate level strategy, focusing on coffee-related products as the premier purveyor of the finest coffee in the world and maintenance of great environment for every staff member in its retail stores. Continual quality improvement is crucial to competitive success and the perfect symbol for the dilemma that faces world trade  (Schindehutte  et al.,  2008). Therefore, it is typical to give the promises to improve service, reduce growth and expand marketing efforts for responding to a decline in customer traffic (Business: Trouble Brewing, 2007).   Equally as important, company should not lose sight of their brand heritage (Cebrzynski, 2007).     A long term business strategy built upon the hundreds of little things on a daily basis  which is the key to customer relationships in the future  (Cannon, 2002). Re-energizing Starbucks Process When a decline in customer traffic  happens to any chains like Starbucks, its a signal that the company should re-examine their positions (Cebrzynski, 2007).  It is the market that provides signals both to the entrepreneur and marketer regarding what value is needed, when it is needed, and how it should be delivered  (Schindehutte  et al.,  2008). Starbucks needs to go back to its â€Å"roots† (Cebrzynski, 2007) and make its brand special again. Company brought back the original CEO, Howard Schultz to restore the companys shine. Starbucks knows it needs to do something new  (Skenazy, 2008). Re-structure: Back to basics Chairman Howard Schultz take back the reins from ousted CEO James Donald,  not only closed 100 unspecified, underperforming locations with weak sales but also closed most stores across the US simultaneously in order to retrain to improve customer experience at American stores and to â€Å"get back to the core  (Creamer, 2007). Besides, Geoff Vuleta, CEO of New York innovation consultancy Fahrenheit 212, had a radical solution that open a chain of microstores devoted solely to making coffee. No travel cups, no music, no machines, just amazing beans and a narrow range of the best-in-the-world coffee drinks,, just moving brand back to the basics.   Resource-led Strategy: Focus on service quality experience Everyone should know that nothing is better for a business than a  satisfied customer  who can talk to others about their experience with our service (Cannon, 2002).   First of all, Starbucks really needs to refocus on the luxury coffee experience; the smells, the sounds. They also gained  customers positive experience in stores by well-trained staffs who were knowledgeable about the company’s products, who eagerly communicated the company’s passion for coffee, and who had the skills and personality to deliver consistently pleasing customer service (Whats Brewing at Starbucks, 2011).  Starbucks wanted to turn all Starbucks employees into partners, give them a chance to share in the success of the company and make clear the connection between their contributions and the company’s market value (Thompson Strickland, 2009). From its founding, Starbucks set out to be a third place to spend time, in addition to home and work.(Business: Trouble Brewing, 2007) To remedy that, the company plans to improve its service. Field managers will spend more time in the stores to make sure service really does get better, and new baristas will receive additional training.  (Cebrzynski, 2007). New breakfast line, featuring a proprietary baked and chilled food program was unveiled in September. Howard Schultz said the smell of the sandwiches overpowered the aroma of coffee, one of the chains signature features  (Jennings, 2008).  Following the lead of other coffee chains, Starbucks will also be offering a customer loyalty card for the first time.  (Ahmed Walsh, 2008)  Ã‚  In an attempt to rvetain loyalty in the UK, Starbucks has introduced free coffee refills for anyone buying a hot drink and has ramped up its hitherto negligible marketing activity  (Lee, 2008). Market-led Strategy:   Reputation management can take a while for a bad reputation to hit your bottom line, or a good one to increase profit (Cannon, 2002). As word-of-mouth is a primary marketing tool, Brian Collins, chief creative officer of New Yorks Collins design research firm, suggested company should better use its digital resources to learn the tastes of regular customers and reach target audience by creating social networking tools  Ã‚  like Facebook or Twitter and blog page.  They also used it both as a way to stay interacted, involved with their current customers and look for new ones.   According to TNS Media Intelligence, Starbucks spent $40 million in the first nine months of 2007 (York, 2008), launched its first national TV campaign to defend its ownership of the coffee segment from encroachment by McDonalds, Dunkin Donuts and other chains  (Cebrzynski, 2007). They also created the site â€Å"My Starbucks Idea† (http://mystarbucksidea.force.com/), which gives consumers the opportunity to post ideas, suggestions, to vote and discuss about what they want to see from Starbucks.  If they gain support, these ideas may be chosen to carry out to change the company in its business process, product development, experience development, and store design.(Jarvis 2008) Change will not happen overnight, Mr. Schultz said. It will evolve over time, but I ensure you a positive change will occur. I, along with our dedicated partners, will strive to exceed the expectations of our customers every day.  (York 2008) RECOMMENDATIONS  FOR FUTURE STRATEGY Some experts therefore believe  its unbranded stores  initiative is not only logical, but necessary. It needs to focus on the inherent values of being local; it needs to employ local staff; it needs to be suitably different from Starbucks corporate image.It is a phenomenally successful company that started off as a local brand but grew incredibly quickly, he says. The brand was originally loved and respected by everyone, but the corporate world decided it had become too big.As the company expands, the culture and corporate strategy must be maintained for success (Jennings, 2008).  For the recommendation, Starbucks should be able to sustain the companys growth and make the business become strong global brand. What could Starbucks do to make its stores an even more elegant milieu that welcomes rewards and give surprises to customers? What new products and new experiences could the company provide that would belong to and be associated with Starbucks? And how could Starbucks reach people who were not coffee drinkers? Starbucks must continue the fixed-price purchase commitments in order to secure an adequate supply of quality green coffee beans and to limit its exposure to fluctuating coffee prices in upcoming periods. (ThompsonStickland, 2009) However, David Anderson, director of Cada Design Group, argues that most consumers dont have issues with the brand.  Consumers are looking for a home away from home, and want it in an environment that isnt so heavily corporate branded.  They think customers are brand loyal or product loyal, but they are not. It comes down to convenience and providing a space people want to be in.  It wants to regain a community personality and the image of the neighbourhood coffee shop.(Golding, 2009) CONCLUSION Starbucks Coffees heyday was back when the corporation announced the business results in the first quarter this year reached U.S. $ 2.7 billion, with net profit of 242 million dollars (nearly 300% increase compared to same period in 2009). This is also the result of efforts to revive the brand had been likened to a giant. From the case of Starbucks, what is the lesson for business? Because development needs, the business diversified products and services is perhaps natural. A long time, Starbucks has gone with their own race shop system extension. This group has become the pride of American business people. The market strategy of Starbucks is a classic lesson in the textbook business. More services they desire to acquire a lot of customers. In fact, they have plummeted, but in time to edit. So go in-depth development (product quality, service key) to get a solid foundation for expanding business. But do not be too ambitious expansion width, expansion, missing the core. Marketing once again demonstrated its magic to bring Starbucks back to the track. The results of consumer research shows that of Starbucks, the main indicators in the business achieved a high level of satisfaction over a year ago. Although Starbucks enjoyed success in the past few years, there are a few obstacles looming. Since the popularity of the coffee house idea has grown, some cities wish to issue regulations on the coffeehouses due to complaints of late night patrons becoming uncontrollable.  In conclusion therefore, Starbucks was the only company with anything close to national market coverage. The companys efforts to greatly increase its sphere of strategic interest via its joint ventures and the move to sell coffee in supermarkets that represents such ongoing drive in order to continually reinvent the way Starbucks operate its business.  (Thompson Stickland, 2009) Amidst the environmental, social, and economic challenges and changes for Starbucks, its chairman, president, and chief executive officer, Howard Schultz, pledges Even during this time of change for our company, one thing that will never change is our long-standing commitment to conducting business in a responsible and ethical manner. Going forward, we will only deepen our approach by continuing to integrate social and environmental responsibility in every aspect of our business. With its various and numerous awards in Best Business, Most Admired Company, 100 Best Corporate Citizens, to name a few, Starbucks is becoming one of the most respected brands in the world.  (Clampitt, 2009)

Equal Employment Oportunity Commission Research Paper

Equal Employment Oportunity Commission - Research Paper Example It also forbade employers from recruiting or relieving employees on the based on gender or ethnicity. While the issue of race has been the cornerstone for the Civil rights act, the inclusion of gender into this provision happened much later due to the efforts of Representative Howard Smith. While skeptics alleged that Smith has done so in order to weaken support for the bill, the latter argued that he had done so only to demonstrate his support for the National Women’s Party. The inclusion of gender gains significance especially in cases where it is a distinctive attribute necessary for the job. The title VII of the Civil Rights Act led to the creation of the ‘Equal Employment Opportunities Commission (EEOC)’, which is the focus of this research study. The primary purpose of the EEOC is to ensure that no employers can (Choate, 2009): "fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his comp ensation, terms, conditions or privileges or employment, because of such individual's race, color, religion, sex, or national origin." McDermott (2009) says that the role and significance of the EEOC has expanded over the years due to subsequent laws. Currently, the EEOC is tasked with eliminating discrimination in the hiring, firing and promotion of employees on the basis of race, gender, religion, color, age, ethnicity or physical disabilities. The EEOC also protects workers from discrimination in pay, training and the number of working hours. While the debate to assign protected-class status to each of these employee classes has been ongoing for several years, the role of affirmative action is also an important domain that influences the operation of the EEOC and is discussed in subsequent sections. About the Commission The EEOC was formed on 2nd July, 1965 out of six different statutes including the 1964 Civil Rights Act, the 1967 Age Discrimination in Employment Act, the 1990 A mericans with Disabilities Act, the 1973 Rehabilitation Act and the 2008 ADA Amendments Act (Stallworth, 2008). Thus, the EEOC has been affected by several statues over the years (Doan, 2009). Each year, the commission handles thousands of complaints related to discrimination and harassment in the private sector, For instance, over 100,000 complaints were filed in 2009 alone. The number of complaints that were eventually filed as cases is historically low (only 300 cases filed in 2009), and are regarded as public records (Keppler, 2010). The cases handled by the EEOC receive widespread coverage in the media and are often discussed extensively in regional radio and television based on the state of origin of the involved parties. Cases that are deemed to have national ramifications are revealed by the press office of EEOC at its offices in Washington. The EEOC is headed by a number of commissioners and the general counsel who are appointed by the President of the United States. Such a ppointments must also be ratified by the Senate. The EECO operates through a central office that is assisted through a network of regional Equal Employment Opportunity (EEO) offices. The latter process the information and complaints received as per the provisions of the various laws discussed in the preceding section. The regional EEOs