Value Pricing at Procter & Gamble

Specific assumptions about the relationship between price changes and market share changes Table. 2 Suggested Budget Requirements Fig. 1 Value Price Result Value  Pricing  At  Procter  &  Gamble  (A)  Ã‚  Ã‚  Ã‚  Ã‚  3 Objective 1: Prisoner’s Dilemma The P&G pricing system in the 70s and 80s was oriented towards market share.Please describe the prisoner’s dilemma in which those companies in the P&G’s markets got rewarded that maintained or increased their price promotions. For sake of discussion, let us use a single company (Unilever) as an example to illustrate how all the companies in P&G’s markets experience prisoner’s dilemma. Since Unilever and P&G operate in the same market, a lot of their actions are interdependent on one another. Initially, the two firms were engaged in a prisoner's dilemma. Major moves in product, pricing or policy without providing their intentions to the other would result in losses for both companies.Thus, a surprise move by any firm would yield lead to inefficiency. Ideally, both parties would prefer to escape the dilemma. This desire would give birth to a cooperative set of behaviour between the two players. This cooperation however would cease if Unilever (or P;G) decides to change its behaviour by increasing or maintaining its price promotions when P;G (or Unilever) chooses to cut back on promotions. Such a move by Unilever would lead to the adoption of a sequential games situation by both firms as the traditional cooperation would no longer exist.By looking ahead to the future response of P;G and reasoning back to the present, Unilever decides that this approach would be best for the firm. By increasing promotions without notifying P;G (which is planning to cut back on promotions), Unilever may see an advantage to the firm. This is referred to as opportunistic behaviour. Unilever may have the perception of P;G as being a bullying firm, and Unilever did not want to be left coopera ting only to have P;G cheat. Since the two firms were cooperating, both firms would be expecting the other to react to such a move.P;G now faces a dilemma whether to increase its price promotions, or to devote funds to increase advertising on products, or to go ahead and cut back on promotions (original plan and the riskiest). Although it is uncertain how they respond, there is no doubt that Unilever would have analysed the probabilities of P;G's potential reactions. Since consumers had become increasingly price sensitive, P&G would lose out in market share if they did not react. It is likely that they would choose to respond with a tit-for-tat move through mimicking Unilever in order to penalize them for cheating.This would result in Unilever hitting back, thus causing P&G to deliver a second punishment. There is no doubt that Unilever analysed this position of P&G and decided on the probability of P&G's response. Since P;G has value in other markets, it is likely that they would r espond and react. Though a reaction is likely, Unilever knew that its consumers are risk-averse. Thus by surprising P;G with higher price promotions, consumers would attach loyalty to Unilever products before P;G could come up with a strategy.If P;G reacted by offering similar promotions, consumers would continue to purchase Unilever products till the prices offered by P;G are low enough (resulting in lower profits) to make consumers shift their loyalties. Value  Pricing  At  Procter  ;  Gamble  (A)  Ã‚  Ã‚  Ã‚  Ã‚  4 P;G could; however, do a number of things to overcome the risk aversion involved in Unilever's move. First, they could rely on their reputation to launch similar or better promotions, since risk aversion would be minimal as both firms are well-known national chains.They could advertise against Unilever, or launch ads which compare the prices; something that had not previously been done when the two firms were cooperating. Since this reaction is probable, Unilever has established that this reaction by P&G will result in an economic advantage in at least one of its markets. Perhaps P&G's reaction would allow Unilever to go ahead and capture new markets while P;G counters this initial move. Unilever decided to cease the cooperative strategy and made an opportunistic move by offering higher price promotions without notifying P;G.Before doing so, it was imperative that Unilever analysed the probable reactions; as well as, the results of these actions. Though it would likely illicit a tit-for-tat response, Unilever felt that the probable outcome would be advantageous enough to cease the cooperative strategy. Unilever's approach demonstrates an ability to look ahead and reason backward to select a move that will help them to gain market share at the cost of P&G (or basically any company which chooses to cut back). Objective 2: Organizational ProblemWhich was P&G’s organizational problem that enforced these strong promotional activit ies? Each business category which consisted of a collection of up to 3 brands was headed by a General Manager. The General Manager of each category had ownership of his/her own Profit and Loss statement. Within the category each brand was managed by Brand Managers. Each brand group was responsible for the success of the brand they managed. Hence there was competition within brands for the promotional budgets as well as manufacturing capacity.Promotion up the ranks within P&G was dependent on the sales and profits of each brand in the case of brand managers and for each category in the case of category General Managers. Even though a criteria like the ability to develop the skills and talent pool of the people lower in the hierarchy was present, it was still the sales and market share parameters that dominated the promotion decision within the firm. Amidst the fight for market share among FMCG (fast moving consumer goods) companies, promotional spending increased and soon became a no rm.Brand Mangers in P&G had short stints on a given brand (maybe a year or two) before they moved either horizontally, vertically or out of the organization. Since compensation and evaluation of performance was dependent on growth over previous year’s sales, managers pushed for relatively more promotional spending, in-order to increase market-share and sales irrespective of the cost. The short-stint of managers did not give them any incentive to think about the long term profitability of the brand, since they were not the ones who would beValue  Pricing  At  Procter  &  Gamble  (A)  Ã‚  Ã‚  Ã‚  Ã‚  5 held accountable in the long term. This led to a short-term focus by the manager for their own gain/incentive rather than looking at the broader picture and profits of the company as a whole. Hence strong promotional activities were enforced due this particular organization and incentive structure. Objective 3: Risks of implementing Value Pricing The category manage r for dish care, John Bess, was considering the introduction of value based pricing (= fair price; lower list pricing than before, but less promotions).Please describe the major risks for P&G in 1991 in case of implementing value pricing in the market for light-duty liquid detergents. Following are the main challenges and risks that P & G could face on implementation of value pricing 1. Operational Challenges: Applying and implementing the value pricing across the company shall certainly have the operational difficulties. This shall be complicated considering the large company and category size, various brands in the LDL Detergent Category, 8000-person sales force and thousands of customers. 2.Difficult to maintain Price Stability: Price Stability is critical to build and maintain a strong brand franchise and value pricing aims for the same. The category saw four price changes per year, on average, and there are 64 different price zones across the U. S. making it more challenging to implement the value pricing. Even if executed, it will be really difficult to create and maintain a significant price impression in the consumer’s mind. 3. No cushion for absorbing abrupt changes in raw material prices- These price changes shall have to be passed on to customers thus defeating the purpose of providing value pricing to the customers.This may also lead to fluctuations in prices. 4. Opposition by Distribution Channel Members: Margins and benefits to distribution channel members – retailers, distributors and wholesalers shall be squeezed under value pricing. There are fears that wholesalers and retailers may oppose the move and can either punish P & G in some way so as to deter competition from taking any such moves or can altogether deny passing the lower prices to the customers or at the worse, delist P & G products. 5.Uncertainty about volume and revenue forecast: Value Pricing is very new to P & G and thus there is an uncertainty about the profit of t he company and different members in the distribution channel in case value pricing is adopted by P & G. Besides this is an untested experiment. And the risks are huge (P & G market share for the category is too low (10%), and it will be difficult to lead the remaining 90% market. 6. Promotion and Price Pressure from the Competition: LDL has become a promotion-intensive category and is one of the most heavily promoted categories in the grocery store.P & G’s own research showed that the Value  Pricing  At  Procter  &  Gamble  (A)  Ã‚  Ã‚  Ã‚  Ã‚  6 market share was highly correlated with leadership in major media and feature advertising. Competitors like General Foods and Nestle have been fighting hard on price. So reduction of spending on promotion (as for value pricing) may hit back P & G in future. 7. Impact on customers: Value pricing shall make P & G move away from discounting. Thus, it may lead to the loss of discount-searching customers to the competitors w ho rely heavily on providing discounts and coupons to customers.Value pricing may lead to almost 10-20% price reduction and can altogether reposition the P & G products in the market. Value-based pricing may increase the loyal customers but the impact shall be much slower whereas the loss of the discount-searching customers shall be immediate. Long-Term gains with the increase in loyal customers may probably be well off-set by the loss of discount-searching customers. 8. Loss of Shelf Space: Prominent visibility and placement of a product is an important factor for the customer in order to make a purchase decision.Move to value pricing shall lead to the loss of fair share of shelf space and display allocation as no emphasis on the same is being laid in value pricing. 9. Fall out impact: Introduction of value pricing is a significant decision for P & G and shall require radical changes at the organizational level. P & G had not done anything this radical on such a scale earlier. In c ase of the Value-based pricing not working for P & G, the fall-out effects can put the business at high risk thereby impacting brand and category profitability and customer loyalty at risk.Objective 4: Short Proposal for Value Pricing In the coffee market, P&G’s own research showed that market share was highly correlated with leadership in major media and feature advertising. The responsible managers had many arguments not to introduce value pricing. However, assume you really want to implement value pricing. Please write a short proposal including recommendations for new list prices and budget requirements across the various marketing vehicles. Effects on sales and profits should be included.Please use case exhibit 13 as a basis for your pricing proposal (current, old plan) and calculate changes in the plan due to the implementation of value pricing (new plan). Even though our own research showed that market share was highly correlated with leadership in major media and feat ure advertising, which does not suggest Value Pricing strategy for coffee category, we still think this method can help us to achieve higher profit, based on reasonable assumptions and planning.Therefore, we work out a Value Pricing protocol for the coffee product, which is as follows: Value  Pricing  At  Procter r  &  Gamble  (A A)  Ã‚  Ã‚  Ã‚  Ã‚  7 Part I Basic Assumptions about the ma I: arket reacti towards price changes ion 1. Fr rom the artic we know that the consumers in the coffee segment is highly sens cle, w n sitive to pric Therefore the ce. e, ma arket reactio to price ch on hanges should be remark kable. As price goes down, the market share should incr s m e rease.When the price d n decreased to a certain am mount, which can h att tract the mos sensitive consumers to change, th market sha should in st c o he are ncreased by the largest p percentage. T Then, the increasing rate should be down. e He are the sp ere pecific assum mptions abou the relatio ut o nship betwe price cha een anges and m market share changes Ite ems Unit Price Changes e Market Sha Changes M are s Senario 1 -10% +7% Senar 2 rio -15% % +15% % Sena 3 ario -2 20% +1 18% Se enario 4 -25% +21% + Senario 5 S -30% +23% Senario 6 -35% +24%Table Assumpt e. 1 tions about th relationsh between price changes and mark share cha he hip ket anges 2. As A in value pr ricing strateg the prom gy, motion should be decreas along with the price adjustment, to find the d sed op ptimal list price of coffee we set up a 10% decre e; ease in mark keting expend diture in all scenarios, w which is att tainable base on our co ed ompany’s con nditions. 3. W simply ass We sume the ma arket size, de livered cost are not chan t nging. Part I Value Pr II: ricing Proce Please re the attac ess: efer ched Excel f file. Part I Value P III: Price result: Please refer the attached Excel file. r d Fig. 1 V Value Price R Result Here b Value Pri by icing, we fin the best list price for o coffee, w nd our which is 47. 8 And the d 81. derived prof based on o fit our assum mptions will b 71. 71, wh improve by 28. 75% be hich ed %. Value  Pricing  At  Procter  &  Gamble  (A)  Ã‚  Ã‚  Ã‚  Ã‚  8Part IV: Budget requirements From the article, we already knew that feature advertising is important to market share, so we will not cut the Feature display part in total marketing expenditures. We try to control the un-critical part to realize the deduction in marketing. Here are the suggested budget requirements: Total Budget for marketing expenditures Advertising Coupons Off Invoice/Feature display 38. 55 35. 15 265. 67 339. 37 Table. 2 Suggested Budget Requirements

Personal Literacy Narrative

To Learn Is to Change Life is full of risks, and that is what makes it so much more exciting. I took a risk in life when I switched from homeschooling to â€Å"real school. † This risk required me to walk through an unknown door. I quickly learned that in order to take a risk, I had to step outside of my comfort zone. If I had not taken that step to go out and try something new, I would not have learned how to survive in a new environment. We learn things in life by doing, and if we do not try things, there will be no growth.In the end I found joy in the journey of risk-taking. If I went back to the day I had the thought of going to â€Å"real school for the first time, I would have told myself the same thing: â€Å"Go for it. † When I walked through the school building’s doors for the first time, I was very nervous. I wondered how I would make new friends. What if the school work was difficult? I was homeschooled until the third grade, and when I began â€Å"r eal school† I surprisingly thrived in my new environment.At times I was bored at the slow pace my peers learned, and I made many new friends. The glory days of high school were some of my absolute favorite times. I was able to get into some challenging academic and musical programs that fully engaged my mind and prepared me for college. I had several teachers say they could tell I loved to learn by the amount of hard work that I put into my school assignments. What could I say? Homeschooling gave me a desire to learn. I enjoyed how much information I would reel in every single day.Frederick Douglass had a life full of chances to grow. For example, he learned to read and write as a slave. In his autobiography he states, â€Å"I wished to learn how to write, as I might have occasion to write my own pass. I consoled myself with the hope that I should one day find a good chance. Meanwhile, I would learn to write. † His soothing hope illustrates that we must be motivated fro m the inside. Douglass had confidence and acted for himself. He faced the truth that extraordinary things happen when we take a chance and open doors that life before us.Unless we do the things we fear and take a chance in life, we will never know the outcome. Homeschooling has shown me that education is a process that changes the learner. I truly am thankful for the experience of public school, and I treasure the years that I spent learning at home, especially. I am thankful that I had faith to explore the unknown. Homeschooling taught me that I can confidently open up new doors in the future that will have so much to offer. There is always more mystery.

Knowledge Sharing Networks and Strategic Alliances Essay

Knowledge Sharing Networks and Strategic Alliances - Essay Example The fruits of this research are going to be reaped by many firms in the future when they decide to form a Strategic Alliance and Networks with another firm. Strategic Alliances can be defined as voluntary agreements between firms for exchanging, sharing, and codevelopment of products. A strategic network may also be formed for the purpose of information sharing and using the knowledge learned from one part of the world by one firm, and then applying this learned knowledge to another part of the world through a different company. In the past research was also done to determine the behavior and performance of firms as a consequence of these alliances and partnerships. However, the major focus of the past research was the proclivity of firms or motivation behind entering into the partnerships and what variables were used by these firms for choosing their strategic partners. One important factor that was unearthed by this paper that gives firms motive to form strategic partnership is the use of information. As the paradigm of knowledge has shifted and firms rely on quick and fast information transfer and usage to increase their profitability, information has a premium attached to it. Many firms form strategic alliance and networks to get hold of this information and use it in their businesses for better profitability and performance of the organization. Hence, strategic networks and alliances have become increasingly important in the sphere of businesses today. (Gulati, Alliances and Networks, 1998) There are various factors that have to be considered before a firm makes a decision about the type of strategy that it is going to implement. Historically, businesses or focal firms can either take hold of other firms through investment, joint ventures or acquisition. However, as the time has elapsed it has become increasingly difficult to predict what kind of strategy, the focal or a firm in need of partnership is going to follow. In a study done on 87 firms and 9276 d eal announcements, it found that a lot of factors play an important role in strategic partnership decisions. These factors range from economics to other important fields in a business context. They include transaction costs, R & D benefits internalization view and the level of technological stage of the targeted firm. It was also worth noting that other conventional theories also hold importance in the decision made by the firms to form Strategic Alliances and Networks. Agency Theory, for example, provides grounds for Strategic Alliances and Networks to materialize. Agency theory states that agents act on the behalf of the principle. The finding in the paper says that one firm agrees to act on the behalf of the other and chooses to forego its own business and resources. it becomes fairly easy to form Strategic Alliances and Network. (Belen & McGahan, 2005) Many other important factors play a very important role in the formation of Strategic Alliances and Networks. A study done on Ne twork and Alliances show that profitability of a firm is likely to increases if there is some sort of connection between the industry participants. This is one major reason why firms operating in an Oligopoly collude and form cartels. Hence, forming strategic alliances and networks increase the

Public budgeting Article Example | Topics and Well Written Essays - 500 words - 1

Public budgeting - Article Example The article starts by laying down the statistics from the Federal Reserve displaying the high number of Americans, and the all-time $975 billion dollars in the year 2008. The projections as of the time was that debt would keep on increasing since people kept reaching for the credit cards debts in order to make ends meet. According to the statistics from the Sachs & Williamson (2009), many consumers have more than five credit cards, with an average total of about five each per family. The psychological look at the consumers by the researchers termed the consumers as having a low debt recovery modality owing to the many debts they find themselves wading. As such, they stray from what they term as normative debt management principles (Amar, et al., 2011). Consumers go forward and start paying individual debts while not looking at the value of each and every debt and prioritizing them. The total redemption from indebtedness is difficult, something that sometimes prompt consumer’s adoption of sub-goals that are normally aimed at settling the individual debts. They sometimes settle the small debts and remain with the huger ones. The oblivion borne by the consumers to the larger debts and misplaced focus by them is what takes a huge toll in the paper as the author analyses the things to do when one is indebted (Heckler, 2013). To the authors, paying of the small debts and remaining with the bigger ones might help relieve the burden but the amount to pay keeps sk y-rocketing as one dilly-dallies. The article is well arranged as the authors move from the obvious to the completely hard stuff concerning debt management. The authors lay down the statistics, the trend in debt management, then finally give their opinion of what should really be happening in the real world concerning the issue of contention. Authors term paying off of debts with larger

Non Invasive multislice CT Coronary angiography ( Case Study) Essay

Non Invasive multislice CT Coronary angiography ( Case Study) - Essay Example 2009) have allowed enhanced temporal and spatial resolutions, the images from which could be further enhanced with the use of image reconstruction and analysis software (Gopal et al. 2009). The diagnostic value of MDCTA is in the ability to diagnose small-volume plaque of soft consistency since in most cases (Manghat et al. 2005), since the acute coronary syndromes result from the rupture of these plaques (Manghat et al. 2005). Thus it remains to be investigated in the following case study about how these three parameters may lead to a specific protocol for imaging in the following case. This is a case of a 56-year-old man who presented to the hospital with a history of chest pain suggesting crescendo angina pectoris for a duration of 48 hours. Previous ECG demonstrated labile changes with transient ST segment elevation that settled to deep anterior-inferior ST depression. Primary percutaneous intervention was futile since noslective injection of the cusp failed to detect the ostia of the right and left coronary arteries. An echocardiography done on the table suggested features of acute aortic root dissection indicated by a dilated aortic root. It was decided that an emergency 64-slice multidetector row CT (MDCTA) would be performed, which revealed in the gated scan of thoracic aorta and the coronary arteries that there was a single coronary ostium with anomalous origin higher and anterior from the suprasinotubular ridge. From this anomalous ostium, two vessels arose, one a small anomalous left anterior descending artery and a common trunk that eventually trifurcate d into a large anomalous circumflex artery, right coronary artery, and a small septal branch. The culprit lesion was located within the anomalous circumflex artery, which proved to be a noncalcified atherosclerotic plaque. A repeat coronary angiography done with a 6 Fr Amplatz left 1 guidewire reconfirmed these findings, in which setting; a direct stenting was performed leading to excellent recovery of the patient. Comment This case exemplifies the clinical utility of MDCTA in that it could detect a rare anomaly of the coronary artery anatomy. In any other investigative modality, it would have been very difficult to detect multiple vessels arising from a location higher than usual, more so from a single coronary artery ostium. MDCTA provided the clinical imaging pathway for mapping these anomalous coronary arteries with localisation of the site of unstable plaque, and obviously, this facilitated rapid diagnosis, treatment; prevented complications; and improved prognosis (Becker 2002). Pathology: Coronary Artery Disease (CAD) The main indication for which CT angiography is done is to detect and diagnose atherosclerotic coronary artery disease (Schindler 2010). This is the main cause of coronary artery disease. Normally myocardium is highly active tissue, and it is in need of continuous and consistent blood supply through which nutrients and oxygen reach the myocardium (Pontone et al. 2007). When atherosclerosis occurs as a pathological lesion in these arteries, the major physiological problem that occurs is deficiency in blood supply to the myocardium due to narrowing in a segment of the artery due to deposition of fatty plaques (Libby 2002). It has been observed that when atherosclerotic coronary lesions occur, primarily there is accumulation and oxidation of

The New World through the Eyes of Christopher Columbus Research Paper

The New World through the Eyes of Christopher Columbus - Research Paper Example In the year 1492, when Columbus found the New World, a large number of changes were taking place all over the world. The European nations at the time were undergoing vast changes with respect to imperialism as well as striving to improve their economies in comparison to economies of other lands. This was when the mercantile era began to fully flourish and grow; agricultural production had also begun to slowly reach a high. Thus, developing nations and countries were trying hard to eliminate all kinds of competition from in and around them in order to gain the maximum amount of power and somehow try and rule the world. Thus, this exploration or voyage by Columbus really helped the European nations to triumph over other nations and get a good head start in terms of production and trade. In no time, these nations indeed did take over many other nations in what came to be known as the colonial period established by the Europeans. The modern day Americas and Australia were first referred to as the New World by Columbus during the middle ages; he had neither chanced upon any other person that had traveled to such far-off lands; and nor had he any inkling whatsoever of the same with the help of maps or compasses. This helped to expand the geographical horizon of the planet further. The usage of the words â€Å"New World’ is historically very important because the coning of this term helps to divide the time periods of the planet on the basis of geographical discoveries.  

Knowledge is generated through the interaction of critical and Coursework

Knowledge is generated through the interaction of critical and creative thinking. Evaluate this statement in two areas of knowledge - Coursework Example It is this process of creating and examining ideas that validates knowledge. It is, therefore, essential to discuss the works of certain philosophers in order to prop the main argument. Thereafter, daily life instances can be evaluated to bring to light the link between creative thinking and knowledge. The two fields of knowledge that would come into consideration are mathematics and ethics. To begin with, Rene Descartes epistemological theory comes into practice. In his discourse theory, Descartes strives to arrive at true knowledge. True knowledge, in this instance, suggests knowledge that cannot be subjected to any skepticism. To begin with his discourse, he subjects all previous knowledge to doubt (Timmons and Shoemaker 284). Thereafter, he strives to affirm whether such knowledge is credible. Skepticism forms an indispensable core of critical thinking. Rene Descartes finds that almost all of preexisting knowledge, with exception of mathematical principles, is liable to doubt (Timmons and Shoemaker 284). He arrives at one single idea that the only thing he cannot question its existence is his very existence. The argument he relays for the proof of his existence is the idea that he thinks. This is because doubt is a form of thought and, therefore, the doubting being is him. The only knowledge that is free from doubt is that he thinks. According to him, thinking becom es the item of which he is immediately aware. Apart from this argument, Rene Descartes proved the shortcoming of senses in finding and examining knowledge. In proof of his claim, he uses the example of wax to illustrate the unreliability of senses as a guide to knowledge. He considers characteristics like color, texture and smell to be deceiving. When he watches wax from various directions, he records different data about it. He dismisses senses as to rely on sensations to achieve their effect. Sensations are pre-established notions about the appearance of objects. He, then, asserts

Light Lab Report Example | Topics and Well Written Essays - 1250 words

Light - Lab Report Example I used five different colors in the experiment. According to Timmermans, (2010) different colors of light have a significant effect on growth of plants, where the amount of energy obtained is different. However, it depends on other conditions, such as temperature, light intensity among others. In this experiment, the researcher has four variables in place. They include independent variables (photosynthesis rate), dependent (effect of wavelength) and factors that are in control and those that were not in control. Control favors included number of leaflets, volume of NaHCO3, concentration of NaHCO3, size of disc used and power of the light that was used. On the other hand, uncontrolled factors were the room temperature that the experiment was carried in. The Hedera Helix discs (leaflets) in our experiment responded differently to different colors of light. The hypothesis of the study is that the rate of photosynthesis varies in different colors of light. The blue color was expected to show the highest rate and yellow color the least effect to the rate of photosynthesis. The requirements for carrying out this experiment successfully include a syringe and beaker/containers. Others incldued leaves (the Hedera Helix discs (leaflets)), holes cutter, NaHCO3 and source of light (colored light bulb). I set up the five sources of colored light in an enclosed system and allowed it to warm up so as to attain equilibrium. I left the Hedera Helix Plant exposed to different light colors for 1.5 hours (90 minutes) using an analog-digital clocks to record the time elapses. This ensured that all the leaves were exposed to light equally. Using the prepared leaves, I prepared the NaHCO3 solution from 0.60g of sodium bicarbonate by diluting it with 300ml of distilled water in a 500ml beaker and added I added one drop of soap. I stirred the mixture gently ensuring that it does not form froth. First I cut small holes into the leaves to obtain numerous

The velocity of different masses on a slope Research Paper

The velocity of different masses on a slope - Research Paper Example For each weight, two runs were made, therefore, giving two sets time values. The velocity of the car was calculated and it was observed that the velocity of the trolley car remained significantly the same and this was attributed to the fact that the distance and the angle of the slope were kept constant during the each successive run. The results agree with the hypothesis; if the length and angle of inclination of a plane are kept constant then, the velocities of different masses of objects moving along the inclined plane will be the same Initially, Aristotle erroneously concluded that heavy bodies would fall at a faster rate than light bodies due to their weight difference (Young et al. 2010, 51). However, in describing motion along an inclined plane, Galileo discovered that the velocity of the moving object increases proportionally with time and that the distance the object travels will be proportional to the square of the time if the initial velocity of the body was zero (Simonyi 2012, 243). Under ideal conditions, Galileo further hypothesized that the velocity of the object at the foot of the inclined plane will be dependent on the height of the starting point (angle of inclination). If the effects of the air and friction are neglected then all bodies fall with the same downward acceleration regardless of size and weight (Stillman 1974, 1). The acceleration, velocity and distance travelled are some of the information required to give a conclusive description of the motion on an inclined plane. Since there is no extra force applied, the motion down the inclined plane is as a result of gravity which pulls directly downwards (perpendicular to the flat surface) as the object slides down the plane (Kline 1998, 55). This experiment purposes to investigate the effect of mass on the velocity of an object down the inclined plane. In effect, it will substantiate the

Fat Tax brings Fat Benefits Essay Example for Free

Fat Tax brings Fat Benefits Essay Junk food. Do any of us know the meaning of the term? Do the consequences of developing lethal diseases not concern us? Apparently, todays society is well aware of what it is, (food with a low nutrition value and is usually processed or ready-prepared (Junk Food)) and what it can do, yet they prefer not to have truth repeatedly slapped in their face by the media. The way I see it, thats exactly what these individuals are asking for. They say diets are productive, but its based off of self-encouragement which can only take you so far. According to an article composed by William Dietz, Obesity is a matter of personal responsibility. Poor dietary decisions cost individuals the expansion of their waist lines. What many do not realize is that as they continue to visit fast food restaurants for breakfast, lunch, or dinner, they develop an addiction. Sooner or later, they find themselves wrapped around junk foods salty fingers and havent bothered to notice that they no longer can see their toes standing upright. Higher taxes should be imposed on processed goods because it could lower death rates and medical bills that tie into obesity, encourage the consumption of healthy products, and educate Americans about adapting correct eating habits. Americans today are consuming 20% more calories than they did in the early 1980s, (Would Imposing par. 3). Also, during that time period, only one third of Americans populace were identified as obese which is equivalent to 13%. However, over the past 25 years, America has exceeded to about 60% of the population being fat (Oliver par. 8). Due to the continuous establishments of fast food restaurants, Americans have noticed that their waist lines have expanded substantially. Hundreds of years ago, McDonalds, Jack in the Box, Wendys, and Burger King were non-existant. With McDonalds Big Mac meal containing approximately 1,300 calories, its no wonder America has been suffering an obesity epidemic. Its because of these successful  companies that we have to pay for the over flowing stacks of health expenses theyve created for us. Comparing Americans then with Americans now, you could literally see the difference without the need of any statistical information from surveys, documents, and whatnot. One of the many reasons why the government is taking this fat tax into consideration is due to the overwhelming figures of premature deaths and medical bills occuring across the nation. According to studies, officials are hoping that taxation on junk food could avert 2,600 deaths, 9,600 heart attacks, 240,000 new cases of diabetes every year, (Chan par. 2). Thats not the end of it. These numbers are ascending as I we carry on with our normal daily lives. For all I know, 2013s statistics for premature deaths due to obesity could escalate to 3,500! Almost every year, Americas government is burdened by the stunning $117 million in debt they have to pay because of people becoming diagnosed with multiple heart diseases thanks to the consumption of fast food. With that being said, the Centers of Disease Control (CDC) informed the public that too much of todays society relies on the cheap and convenient take outs our restaurants provide us. They encounter at least 400,000 individuals with health problems, charging them almost $100 million a year (Lewis par. 4). For this reason, it is why unhealthy grubs are purchased regularly. If people were to choose between a $2 cheeseburger and a $10 salad wrap, what are the chances of them picking the $10 salad wrap? Thats what I thought. Its disappointing knowing that profits made from fast foods are used to assist our nations debt. Why cant the money derive from potent nourishments? Why do we allow the selling of unsalutary meals, knowing we are feeding them death munchies? In Addition, America has judgement skills that are completely frail and incompetent. Here we are placing exorbitant prices on healthy products when it should be the life-threatening comestibles that should be prohibited. A hand full of officials in the country have required several fast food restaurants to display calorie-count labels to drive individuals taste buds from convenience food. But even that wont prevent obesity (Mozes par. 7). Nevertheless, even a simple a simple label couldnt stop the hungry beasts of America from  gobbling down chunks of blubber. Due to these astonishing numbers, Americans are looking towards taxing junk food similarly to sin taxes. Its a tax on harmful items (such as alcohol, tobacco, etc.) that could reduce its consumption. Officials have been pushing for states to insitute a fat tax and consider it as a sin tax. According to several smokers in New York, they discovered that paying a total of $14.50 for one pack of cigarette wasnt worth their money. Some of them knew that complaining wouldnt get them anywhere, so they eventually ditched the dependency (Sutherland par. 2). With the assistance of this sin tax, smoking rates dropped by 12%, (Would Imposingpar. 3). This specifically proves to opponents that bomming junk food tariffs can depreciate premature death percentages and medical expenses as well. Obviously, pricey items attract less customers nowadays; so the higher the taxes, the lower the consumption. Plus, our government could distribute these taxes to health services and programs that illustrate the essence of corpulence. Also, whether the populace continues to ignore the governments warning through tariffs, either way the tariff generated $30 million in new revenue, tax records show. Basically if fast food customers wish to pursue their daily routine visiting McDonalds, itll still bring the economy extra dough to support the country. Even if our main focus is to sever societys tongue from higher cholestrol levels, we can only succor those who wish for assistance. Moreover, authorizing taxes on fast foods could subsidize the nutritional products that actually supply our physiques with the appropriate energy it naturally pines for. Knowing that the poorest in the country rely on cheap junk food, (Lewis par. 5), automatically discloses that this necessitates more natural resources. However, in America its vise-versa. The more nutrition an item contains, the more you have to pay. With higher taxes on junk food, there would be no need for the federal to tax our fruits and vegetables. Society will eventually quit their whining and chase cheaper alternatives. Representatives throughout the country have calculated that an 18% tax  on junk food would result in a 56-calorie decline in total daily intakealong with significant reductions in the risks of most obesity-related chronic diseases, (Fiore par. 12). Doctors have stressed that the recommended calorie consumed should be in the range of 2,000 calories. By the looks of it, Americans today are exceeding these limits. And they wonder why they are experiencing strokes, heart attacks, and becoming diagnosed with diabetes. Lastly, more health education could influence the populations mindset about the need to eat sugary items. Media has played a huge role in advertising greasy items. Instead, we could use this strategy to discourage our customers from purchasing fast foods, stressing our concerns of obesity. Our targets would be the same audience that was exposed to fattening commercials. Raising awareness within our communities, and then our country is what the U.S. lacks today. It has been said that You are what you eat, but are any of us aware of exactly what we are putting in our mouths? They may display what supplies make that particular meal, but do they show how much butter they use to cook steaks? Apparently, the U.S. Department of Agriculture says hamburgers have been growing from 1 ounce in 1957 to 6 ounces in 1997, (Oliver par. 11). If 1997 was sixteen years ago, just imagine how hefty burgers are today? Notifying our customers about junk food should be our leaders priority. It would be irresponsible not to try everything we can to save livesPeople are dying everyday due to sugary products, (Bloomberg qtd. in Heaton par. 5). I couldnt agree more with Mayor Bloomberg of New York. He is probably the only official that wants to institute a fat tax to give back to the people he represents. Americans are self-centered, and their main focus is money. No one cares if theyre putting ones life in jeoparady by creating harmful grubs. If one was to take a stand against these fast food companies, itll have to start with our leaders. On the other hand, controversies have made society equivocal about the implementation of taxation on packaged foods. As expected, citizens of America claim that the government is becoming too controling, and their freedom of choice is being stripped from them. While our officials  intensions are to perpetuate the corpulence widespread, others feel provoked because they believe the government is trying to dictate their intellect (Lewis par. 3). Our leaders stress that taking care of the well-being of our internal organs should be our priority. However, the public refuses admit to the valuable advice they articulate. Many feel as if they were to say, Who are you to tell me what I can eat and not eat? Its only fair that the people have the last say. After all, this country was established fighting For the people, by the people (Star Spangled Banner). On top of that, as stated in an article by Jen Kalaidis, tax also costs [the] country an estimated 1,300 jobs because employees would no longer be needed in food retail sectors. Although an collection of occupations would be lost, many tend to give in and develop the mindset of a pessimistic. As Alexander Graham Bell, (an eminent scientist, engineer, innovator, etc.), proclaimed, When one door closes, another door opens. The message he speaks of is about preserverence and circulating nothing but positive thought within your mind. Americans who fear losing their jobs should realize that plantation fields and factories will demand more and more employees once the fat tax is instituted. The fields will require more man power for labor work, and for manufacturing purposes as well. You will soon after notice that grocery markets will have job oppertunites. Its actually a ripple effect, and once the economy is back to the way it was before the nation debt came about, the unemployement will be no more. Therefore, it is essential to communicate the outweighing benefits of a fat tax to the public now, before America begins to hit a downfall in the next five years. Junk food should not be outlawed, nor should it be cheap. If Americans want to continue this portliness evolvement, they can expect to see excessive aftermath in death rates. These unhealthy eats are about to rebuild our countrys values soon enough. However, with the assistance of this Twinkie Tax, I believe we could expect a tangible decline in Americas death progression and health expenses, a promotion of organic products, as well as more programs raising awareness of corpulence. Works Cited Chan, Amanda L. â€Å"Raising Junk Food Prices Could Spur People to Consume Less: Study.† The Huffington Post. The Huffington Post.com, 12 Dec. 2012. Web. 26 Apr. 2013. Dietz, William. â€Å"Obesity ProCon.org† Obesity ProCon.org. Search Engine Optimization, 19 Apr. 2013. Web. 26 Apr. 2013. Elder, Larry. â€Å"Just How Fat Are We?† WSJ: World Stream. WND Commentary, 1997-2013. Web. 26 Apr. 2013. Fiore, Kristina. â€Å"Junk Food Tax Could Improve Health.† ABC News. ABC News Network, 10 Mar. 2010. Web. 06 May 2013. Heaton, Richard. â€Å"NYC Soda Ban Overturned then Appealed.† Digital Journal (2013): n.pag. Print. â€Å"Junk Food.† Dictionary.com. Dictionary.com. n.d. Web.05 May 2013. Kalaidis, Jen. Should the U.S. Adopt a Fat Tax? The Week [New York] 25 Feb. 2013: n.p. Print. Lewis, Catherine. â€Å"The Junk Food Tax: How Much are We Willing to pay to get America Healthy?† Your Health Information Center. Insiders Health, 2011. Web. 5 May 2013. Medical Weight Loss Resources. Top 10 Obesity-Related Diseases. American Heart Association, Centers for Disease Control, National Institutes of Health, 23 Apr. 2013. Web. 16 May 2013. Mozes, Alan. â€Å"The Fat Tax.† A Controversial Tool in War Against Obesity. (23 May 2005): 2-3 Print. Oliver, J. Eric. â€Å"A Big, Fat Problem.† Fat Politics: The Real Story Behind Americas Obesity Epidemic. Oxford: Oxford UP, 2006. 1-4. Print. Sutherland, Amber. Smokers Huff Puff Over New Cigarette Tax. New York Post. New York. 3 July 2010: 1-2. Print â€Å"Would Imposing a High Tax on Fast Foods and other Unhealthy Foods Help Combat Obesity Issues in U.S.?† Debate.org. Centers for Disease Control Prevention, 22 Nov. 2010. Web. 29 Apr. 2013.

The Concepts Of Supply Chain Management Business Essay

The Concepts Of Supply Chain Management Business Essay Explain what are the supply chain uncertainties and supply chain risks; explore some already established theories about the supply chain uncertainty using academic and professional journal articles. Discuss the phenomena and behaviour of the Forrester Effect as one of the models for demand uncertainty; further explore the countermeasures of Forrester Effect. Elucidate the critical importance of supplier relationship management for the supply chain competitiveness; by finding and referencing to a number of professional literatures critically review some relationship management frameworks, models and approaches; discuss how a business might decide on the most appropriate relationship portfolio and management approach. Define and explain the concept of strategic outsourcing in the context of designing and reconfiguring supply chain structures; discuss the decision process of outsourcing and influencing factors; explore what might be the difficulties and barriers in its operational implementation; and finally summarise the key benefits and potential risks. Requirement: A content page and page numbering To complete two separate reports on two chosen topics from the three above, indicating the question number. Properly structure the discussion into sections and give subtitles for each section. Use references (normally 3-5 professional journal articles for each report) to demonstrate the extended learning Each topic is recommended to be up to 2500 words in length. No lengthy case study is required, but some short (a few sentences) real world examples may be adequate. SUPPLY CHAIN MANAGEMENT Table of Contents 1.0 SUPPLIER RELATIONSHIP MANAGEMENT.2 1.1 Introduction .2 1.2 Importance of Supply Relationship Management..2 1.3 Relationship Management Framework.4 1.3.2 Industrial Marketing and Purchasing (IMP) interaction Approach..4 1.3.3 Supply Chain Frameworks.4 1.3.4 Service Supply Modelsà ¢Ã¢â€š ¬Ã‚ ¦..à ¢Ã¢â€š ¬Ã‚ ¦5 1.4 Relationship Portfolio and Management Approach6 2.0 STRATEGIC OUTSOURCING11 2.1 Outsourcing and Supply Network Design..11 2.2 Outsourcing Decision Process and Influencing Factors..11 2.2.1 Planning phase12 2.2.2 Explore the Strategic Implications phase..12 2.2.3 Tactical implications phase.12 2.2.4 Cost analysis phase..13 2.2.5 Implementation phase..13 2.3 Implementation Problems.14 2.4 Key Benefits and Potential Outsourcing Risks.15 REFERENCING..17 1.0 SUPPLIER RELATIONSHIP MANAGEMENT 1.1 Introduction An important feature of a world class organisation is the way the organisation has been able to develop and link its suppliers with its external processes, Peter Hines, World Class Suppliers, (Pitman, 1994). Supplier relationship management can be defined as the relationship that exists between the supplier and its buyer based on long term commitments and trust with the ultimate aim to maximise the potential value of the relationship. This will include the management of different forms of supply relationships such as partnership, joint venture and vertical integration. 1.2 Importance of Supply Relationship Management The critical importance of supplier relationship types to achieve supply chain competitiveness can be viewed under the following headings: The effective use of strategic partnership Typical traditional short term relationship is characterise by irregular or one-off transactions that give rise to supply uncertainties, difficulties in choosing suppliers, and is price oriented making this type of relationship unreliable and unsupported. Organisations can move from this type of relationship towards a long term relationship known as partnership based on trust, shared goals and risks to achieve mutual benefits. Nigel Slack, Stuart Chambers and Robert Johnston, Operations Management, (Pearson, 2010), define partnership as an agreement between two firms that seek to accomplish a common objective. The Japanese, James P Womack et al, the Machine That Changed the World, (Macmillan, 1990) , used the concept of partnership and lean to gain competitive advantage because they realised their partners had the expertise, the technical knowledge and were reliable. Effective partnership with suppliers made them to compete favourably in the market because of good product quality, lo w cost and reliable delivery. Therefore, firms can use this same method to rationalise their supply base and use the lean concept to produce efficiently which will lead to reduce product lead times, reduce inventory and inventory cost. The implementation of new management tools and systems A key element of supply relationship management that gives firms competitive advantage is the implementation of the lean concept of monitoring supplier performance and continuous improvement. Monitoring performance is a post-contractual procedure in which the buyer continuously keeps an eye on the supplier by either managing the suppliers activities to make sure all commitments are met or using a measurement matrix such as key performance index (KPI) to compare supplier progress and divergence from targeted objective. The overall competitive advantage is an operation that is continuously improved in terms of quality, delivery and service. In 1989, Chrysler benching against the Japanese companies, initiated the Supplier Cost Reduction Effort (SCORE) program aimed to reduce cost, quality and monitor supplier performance; Dawei Lu et al, Supply Chain Management module notes (WMG, University of Warwick, 2011). The integration of knowledge and technology to create an all new technology Integration with supplier is all about coordination. Here, the buyer and supplier come together to align their processes thus improving communication and supply chain visibility for both parties. When firms integrate their knowledge and technology they are able to meet the needs of end customers by getting the right product at the right price and quality, giving them a competitive edge. This strategy was used by Bose Corporation 1990 that led to the extension and creation of the JIT2 concept, a logical extension of JIT that eliminates waste in the system, improves communication and reduces demand variability. Efficient consumer response (ECR) to demand variability caused by the forester effect. Firms are always seeking solutions for continuous demand variation and consumer requirements. Through effective supplier and buyer collaboration, firms will be able to achieve competitive advantage by efficiently managing their supplier relationship to meet the needs of the end consumer creating a fluid inventory flow from suppliers to the consumers reducing lead times, demand variability and uncertainty. This has led to initiatives such as Radio Frequency Identification Device (RFID), a tracking technology that provides real time information and location of goods. Tesco, UKs largest grocery retailer has exploited this technology strategy and is piloting pallet-level RFID to manage its logistics; Christos Tsinopoulos and Carlos Mena, Competing Supply Chain Strategy: Tesco, Aldi and Lidl, (ECCH, 2010). Increase competition amongst firms to secure and increase domestic and international market share. Domestic and international market pressures are just other facets that have pushed firms to collaborate and develop strategic partnership with suppliers to gain competitive edge. Using this approach, firms use both local and international suppliers to broaden their sourcing base, reduce product lead time, and stream line cost through cheaper, global and local sourcing alternatives. The benefits are quick response to demand variation and high availability of variety of products at reasonable price and quality. This in turn attracts a greater amount of customers and increase market share. This is a strategy which IKEA, a Swedish international furniture company has successfully used to provide quality products at reasonable price and secure a large market share both domestically and internationally. 1.3 Relationship Management Framework 1.3.1 Introduction A relationship defines an interaction between individuals, organisations and groups; Kenneth Lysons and Michael Gillingham, Purchasing and Supply Chain Management (Prentice Hall, 2003). There are many possible supply chain relationship types because very few companies can operate on their own. These relationships can be categorized as business-to-business (B2B), business-to-consumers (B2C), consumers-to-business (C2B) and customers-to-customers (C2C). B2B relationships are most common and have been used in many approaches and models such as IMP, SCOR, HP, GSCF, Service supply chain and IUE-SSE to help explain supplier-customer interaction. 1.3.2 Industrial Marketing and Purchasing (IMP) interaction Approach The IMP interaction approach is a dynamic model of supplier-customer relationship developed in the mid 1970s by a group of five European countries and universities; IMP Group.[online].(http://www.impgroup.org/about).(Accessed 06 Feb 2011). Based on investigations of about 900 business relationships, the IMP group developed a model of an interaction process at both the firm and individual levels creating a dynamic, complex and long standing relationship rather than one based on a short term stable relationship; Bensaou M (1999), Portfolios of Buyer-Supplier Relationships, Sloan Management Review, Vol. 40, 35-45. This relationship is influenced by soft factors such as power, cooperation, closeness and expectations as well as external environmental factors such as market structures, dynamism, internationalisation and position in the market. The IMP Group approach and model provide a good overview of buyer-supplier relationships and have formed the basis of other frameworks like David T. Wilson, (1995) Integrated model of Buyer-Supplier relationships, Journal of the Academy of Marketing Science , Vol. 23, 335-345. 1.3.3 Supply Chain Frameworks Customer-supplier relationship management models and frameworks can also be viewed within the context of the different types of supply chain models that exhibit customer-supplier relationship management. This will include a variety of supply chain models which address customer-supplier relationships such as HP, SCOR, GSCF, and IUE-SSC model. These models identify customer-supplier relationships by adopting two differing views; product and service supply chain view. Product oriented models adopt a manufacturing approach that involves the physical movement of goods under uncertainties managed to satisfy customer demands and include the HP, SCOR and GSCF models. The Hewlett Packard (HP) model was developed by the Hewlett Packard Company as a result of spiral inventory and customer dissatisfaction the company was facing with its order fulfillment process. Lee, H. and C. Billington, (1995), The Evolution of Supply-Chain Management Models and Practice at Hewlett-Packard, Business Source Premiere, Vol. 25, 42-63, used this model to demonstrate how suppliers, manufacturers and customers are linked in the flow of goods with multiple warehouses providing inventory at each stage to buffer demand. The Supply Chain Operations Reference (SCOR) model is a highly structured and broad model developed by the Supply Chain Council to measure total supply chain performance; Supply Chain Council. [Online].(http://supply-chain.org/f/SCOR%2090%20Overview%20Booklet.pdf ) (Accessed 06 Feb 2011). The SCOR model adopts a process manufacturing viewpoint and identifies supplier- customer relationships by breaking down the supply chain into links, each link made up of processes representing supplier-customer relationships. These relationships are then benchmarked using Key Performance Indicators (KPI) to assess the success within the supply chain. This model, although it improves customer satisfaction through improved supplier-customer relationships, it does not attempt to describe some elements of post delivery customer support, a critical feature of supplier-customer relationship management. The Global Supply Chain Forum (GSCF) is yet another supply chain framework that adopts the process manufacturing approach and identifies supplier relationship management as one of its eight key business processes of product flow. Croxton L. Keely et al, (2001), the Supply Chain Management Processes, International Journal of Logistics Management, Vol. 12, 13-24, depicts this model as an end-to-end process where each process is linked and managed to interface with key customers and suppliers. This creates eight business processes among which is customer-supplier relationship management to allow the smooth flow of product within the supply chain. 1.3.4 Service Supply Models The above three models define supply chains purely from a traditional perspective of product flow. However, with the growing importance of services and service industry, Ellram et al, (2004), Understanding and Managing Service Supply Chain, The Journal of Supply Chain Management, Vol. 40, 17-32, adapted this manufacturing approach into a new line of service thinking that uses service capacity and delivery, instead of products to classify supply chains as the key processes. This service supply model captures customer-supplier relationship via an end-to-end supplier and customer process that include capacity and demand management, cash flows and service delivery management, and just like manufacturing supply chain, customer relationship management. This is a very good approach that identifies relationship management but limited in that services are intangible and this makes them difficult to visualise and measure. A follow up to the service supply chain viewpoint is the work of Baltacioglu et al (2007), A New Framework for Service Supply Chains, Service Industries Journal, Vol. 27, 105-124, who proposed the IUE-SSC model. IUE-SSC model represents the initials of the affiliated organisation of the authors and Service Supply Chain Model. This model identifies customer-supplier relationships by breaking down supply chain into three basic parts: the supplier, the service provider and the customer. Here, the service supplied by the supplier constitutes a core and supporting service and just like the service supply chain model by Ellram et al, this model identifies a number of activities that includes some customer-supplier relationship management essential to the service supply chain. Relationship types are diverse and could either be of business type such as B2B or consumer type such as C2C. In my thinking the popularity of B2B and the historical context of consumer-supplier behaviour pushed the above mentioned authors to focus exclusively on B2B relationships in explaining customer-supplier behaviours in the models they proposed. But the general shift in consumer behaviour and the impact of globalisation and information technology should trigger a move to contemporary models of consumer-supplier relationships in business-to-consumer, consumer-to-business or consumer-to-consumer. I therefore think that the modern business world would appreciate models build around E-commerce type relationships and a move from product or service approach models that explains consumer-supplier relationship management. 1.4 Relationship Portfolio and Management Approach Conventional thinking suggests that relationships tend to vary with companies and there is no fit for all purpose relationship. A logical step after organisations are able to identify the various types of relationships is to focus on the relationship portfolio they want to build with their suppliers and to effectively manage this relationship for competitiveness. A number of methods and approaches have been adopted ranging from the various types of relationships to more analytic models such as Kraljics Purchasing/supply portfolio-analysis and the power regime. Firms have adopted different approaches to tailor the different types of relationships to fit their particular products, service or markets. These relationships tend to follow a pattern from a short term traditional arms length relationship to a new form of close and long term relationship known as partnership or vertical integration; Alan Harrison and Remko van Hoek, Logistics Management and Strategy, (Pearson, 2008). Others have viewed this trend as a continuum and included additional types such as strategic alliance and joint ventures. Depending on its strategy, a firm might adopt a range of style such as develop strategic partners by rationalising its supply base and dealing only with a few suppliers, a popular approach most firms are now adopting. It might also adopt a variety of relationships style depending on the markets and the products. The Kraljics model analyses the purchasing portfolio of a firms product into high and low supply risk and supply impact on the financial results. The end result is the segregation of products as: strategic, leverage, routine and bottlenecks as shown below; High Low Fig 1: Kraljics model Leverage products Alternate source of supply available Substitution possible Competitive bidding Strategic products Critical for products cost price Dependence on supplier Performance based partnership Routine products Large product variety High logistics complexity Labour intensive System contracting E-commerce solutions Bottleneck products Monopolistic market Large entry barriers Secure supply and search for alternatives Low Supply Risk High Source: Dawei Lu et al, Supply Chain Management module notes (WMG, University of Warwick, 2011). Using this method, management can therefore spend time and develop performance based relationships such as partnership on those suppliers whose products matter most, for example, strategic products and outsource non critical or leverage products. Bensaou M (1999), Portfolios of Buyer-Supplier Relationships, Sloan Management Review, Vol. 40, pp. 35-45 adopted a similar approach based on product and market conditions to create a supplier portfolio of our different relationship profiles; captive buyer, strategic partnership, market exchange and captive supplier. Fig 2: Relationship Portfolio Source: Bensaou M (1999), Portfolios of Buyer-Supplier Relationships, Sloan Management Review, Vol. 40, pp. 35-45 To effectively manage the relationships such as the Captive buyer and Market exchange, Bensaou suggested the use of management practices such as treating each other with respect and fair profit sharing and for strategic partners to regularly exchange information or pay frequent visit creating a social climate that is trusting and collaborative. The ABC analysis method is another commonly used technique by businesses to segment supplier relationship portfolio. Wagner S. and Johnson J. L., Configuring and Managing Strategic Supplier Portfolios, Industrial Marketing Management, Vol. 33, 717-730 adopted this approach using a wide range of factors such as volume, suppliers performance, supplier strategic importance, price and quality to segregate suppliers into category (Cat) A, B and C. Cat A suppliers where suppliers that supplied a total 80% volume, while Cat B supplied 15% and finally Cat C, 5%. Very little time is spent on managing and developing Cat C supplier because of their limited volume. In most cases they are used by the company as a way to reduce cost by either direct sourcing or via e-procurement. On the other hand, Cat A suppliers should be considered imperative by top management and a close relationship or partnership should be developed. This relationship can be monitored through regular and annual meetings with suppliers as well as creating an award for suppliers to maintain motivation. In addition, the buyer can invest on supplier development by either assisting or sponsoring supplier to improve performance. Another approach is that by Andrew Cox et al (2004), Managing Appropriately in Power Regimes: Relationship and Performance Management in 12 Supply Chain Cases, Supply Chain Management, an International Journal, vol. 9, 357 371, that correlates the findings of relationships and performance management strategies in power regimes. In a power regime, a business can decide on the appropriate relationship and relationship management style(s) depending on their power condition, as shown on the fig 3. Therefore, in a business deal where the buyer is dominant or has an interdependence power position, it will be better to choose a relationship approach based on supplier development. Conversely, in a supplier power regime relative to supplier dominance and/or interdependence then the option is for a supply chain management approach to be adopted. A change in the power structure in this technique will lead to a change in the relationship portfolio and this will lead to improve performance outco mes especially when either parties change their behaviour. Fig 3: Power Regime 2.0 STRATEGIC OUTSOURCING A significant decision facing most businesses today and which have a long term impact on the firm is whether to produce internally (insourcing) or use an outside supplier (outsourcing); Robert Monczka, Robert Trent, and Robert Handfield, Purchasing and Supply Chain Management, (Thomson, 2005). 2.1 Outsourcing and Supply Network Design Outsourcing, sometimes referred to as make-or-buy, is a strategy by which an organisations management decides to hand over its non-core activities to a specialised third party that can efficiently provide the service; Kenneth Lysons and Michael Gillingham, Purchasing and Supply Chain Management, (Prentice Hall, 2003). Therefore, central to outsourcing is the make or buy decisions and the relationship that is formed between the purchaser and the supplier. The make or buy decision arises because organisations have come to the realisation that they cannot produce or make everything on their own and can effectively spend more time on core competence while non core competence could be outsourced. This decision to outsource or make or buy is a strategic one that will create a new supply network of suppliers and sometimes suppliers suppliers. In this new supply network, the organisation will need to adjust its operation in line with its new suppliers and, where possible, its suppliers suppliers creating a total supply network; Nigel Slack, Stuart Chambers and Robert Johnston, Operations Management, (Pearson, 2010). This strategic decision to outsource brings a whole new chapter within the organisation and will prompt a key design decision; how to configure the new network and how much of the network should be retained by the organisation. This will help management to decide on how it intends to influence and manage the overall new structure . 2.2 Outsourcing Decision Process and Influencing Factors Traditionally, the main outsourcing decision process focused on cost reduction. However, the importance of outsourcing decision to an organisation competitive position has pushed many organisations to consider a number of other factors. The decision process adopted here is one adapted from Robert Monczka, Robert Trent, and Robert Handfield, Purchasing and Supply Chain Management, (Thomson, 2005). 2.2.1 Planning phase The initial process in undertaking any outsourcing motive is to initiate a project of a cross functional team and define its scope and objectives. The team should identify activities to be outsourced and present to management for acceptance. Explore the Strategic Implications phase Strategic implications will mean aligning the outsourcing decision with three main factors: The companys long term plans and its impact on other activities and functions. This means if the activity that is being outsourced should disrupt the companys future plan or affects other functions, it is better off being insource. Furthermore, the decision should be in line with an understanding of the organisations core competence. If outsourced activity is not perceived as being core capabilities, the firm might decide to outsource. Analysis of the impact of process technological and how it compares to its competitors for competitive advantage. If analysis shows minimal competitive advantage then the organisation can decide to outsource but in cases where in house process technology provides competitive advantage, the organisation could reconsider to insource. 2.2.3 Tactical implications phase Tactical decision process will consider the following factors, and the ability to test prospective outsourcing initiative. Alternatives to outsourcing: Being tactical is crucial in outsourcing because the final decision to outsource can be very expensive for the organisation. Therefore, before making that final decision, the organisation could reconsider alternatives to outsourcing such as producing in-house, subcontracting or vertical integration. The length of contract: Outsourcing decision could mean being tied down in a long term contract which could impact on other strategic objectives. Impact of size: Also the size of the outsourcing activity can impact on the decision process as management can decide on other options if the activity to outsource is too large and can have adverse effect on core activities. Corporate culture: The impact on corporate culture is another key tactical factor that should be considered on outsourced activity to organisation. This means considering employees feelings regarding the activity to be outsourced. 2.2.4 Cost analysis phase Critical to any outsourcing decision process is its ability to be cost-effective at a quality level competitive in the marketplace. An accurate cost-effective calculation looks beyond the initial and obvious costs and is based on a marginal costing principle; a cumulative costing concept including total variable cost, total fixed cost and operating costs. Other costs will include the opportunity cost which is the potential benefits forgone if the activity being outsourced is done in house. Implementation phase The implementation process will be driven by effective service provider selection and managing post-contractual relationship. Because outsourcing usually involves a long term contract and high investment, selecting the correct service provider is imperative. The selection process will include; Market research: This involves carrying out a thorough market research to determine market price and terms of conditions, and identifying potential service providers with the right expertise, capacity and similarity in corporate culture. Develop a tender request. The tender request should provide in detail the outsourcing requirements as well as general information about the organisation including the scope and the objectives of outsourcing. This document will form a good guide to potential service providers. Conduct site visit. After tenders have been submitted, a site visit to potential service provider will aim to compare reality to what is on paper. It will be an opportunity to look at the corporate culture, its processes, the people, and how they can fit in to the outsourcing organisation. Negotiate. Negotiation will aim to find a common ground for a win-win situation. Central to this will be: quality of service and the performance level, scope for improvement and change, pricing and management style including assimilation of employees. The implementation process is not complete without any form of decision to manage post-contractual relationship which is very important to the sustainability of the whole outsourcing process. The key factor is to develop a key performance indicator (KPI) to continuously measure and monitor performance of service provider so that service quality is maintained and relationship continuously improved. In conclusion, the decision to outsource by a firm is a crucial and strategic one because it affects a greater part of the firm and it can be used as a competitive tool. Traditionally, this decision was based simply on cost and benefits but as discussed above, the decision process is now influenced by many factors and departments. Therefore, for an outsourcing decision process to be effective and efficient, a cross functional team should be selected to be part of the whole process. Implementation Problems Shawn McCray (2008). [Online].(http://www.tpi.net/pdf/papers/Top_10_Problems-with_Outsourcing.pdf).(Accessed 23 February 2011), identifies poor change management and governance as key issues in implementing outsourcing. Some of the problems related to implementation are: Post-contract processes poorly written: This occurs because both parties after signing the contract do not want to work together. The root problem being mutual misunderstanding of contract and the scope of outsourced activities resulting to services not performed and increase frustration amongst staff. Cultural clash: Cultural clash, corporate or international, can tend to produce tension, distrust and misunderstanding. This is problematic especially in a situation of offshoring where communication is limited to email or phones. This will be further compounded in difference in work ethics which if not streamlined will create added tension. Quality of service: A main reason management decides to outsource is to improve the quality of service. Where service provider is unable to achieve this, the whole outsourcing process becomes questionable and creates problems surrounding contractual performance and implementation. Lack of Coordination: Coordination and the lack of a coordinating team present an implementation problem. This is because as soon as the contract is signed, the client quickly shifts all responsibilities to the service provider who is still trying to get started and there is no team in place to coordinate activities. This wi

Globalization Essays -- Business International Globalization

Globalization is necessary in the world. Different theories on the concept of globalization provide distinct reasons on the need for globalization. The world’s advancements and technology help drive the need for globalization. Communities and organizations alike are affected by globalization, and smaller countries benefit from the generosity of larger participants in the world’s market. Globalization, in the business sense, is to make a product or service available in the global market. Any investment that is across national borders is also part of globalization. Many companies in the United States (US) have taken their product, service, or investment opportunities to other countries. This affects the global economy. Just as the economy of the US affects many Americans, the global economy affects the citizens of the world. As any company that does affects the global economy, positive or negative affects may be realized. Many different theories support the concept of globalization. Tariffs are levied on a country-to-country basis. Tariffs are duties, also known as taxes, which each country puts on the imports and exports of that country. The government of the country in question wages a tariff. The World Trade Organization (WTO) oversees all countries. Absolute advantage supports the concept of globalization, because this concept ensures that one country can produce a product better and more efficient than another country. By importing or exporting this product or good, the countries that use this product can easily trade other products or goods. This helps countries produce the things to make them more efficient. Comparative advantage happens when the opportunity cost of producing goods differs from country to country, all... ...upport the reasoning behind the need globalization. Many countries benefit from the use of products and services from other countries. In turn, the countries all benefit from each other. The markets will dictate what the driving forces are, but for now, the largest driving force in the world’s economy today is technology. The effects of globalization can be seen in many different organizations and even communities across the US. Regional trading blocs help countries that would normally not be a participant in the world market. Globalization is will only make this world’s economy stronger. References Blundel, R., & Thatcher, M. (2014). Contrasting Local Responses to Globalization: The Case of Volume Yacht Manufacturing in Europe. Web. 18 May 2015. Hill, C. (2008). International Business: Competing in the Global Marketplace (7th ed.). New York: McGraw-Hill.

Roma Culture :: essays research papers

Roma Culture Romas, or Gypsy, have traveled all over the world starting from India, which is considered their origin however not proven, and ending up as far as Spain where their customs have influenced and changed modern day societies. These diasporas were not deliberate but rather forced on them due to their beliefs. Stereotypes have been created to make Romas look like thieves, which is where the phrase, â€Å"I’ve been gypped,† comes from. Gypsies were and still are easy to point out due to their dark skin and jet black hair making it easier to discriminate. They traveled to Egypt, Turkey, Romania, Hungary, Slovakia, France, and Spain looking for a place to call home, but no one would accept them. Some even persecuted and murdered them like in the Holocaust. However, what is most interesting is how their miseries and suffering have made them into one of the strongest cultures to survive so long. One of their biggest strengths is music. Without it, they might not still be here to day. Music by definition is â€Å"vocal or instrumental sounds possessing a degree of melody, harmony, or rhythm.† However, to the Roma people music is a form of identity, of beauty, of culture. The music heard from these people will tell a story, whether of their troubled past or just pure entertainment. Every person in the Roma society is familiar with or can chant the heartfelt lyrics and melodies that have been orally passed on or created as generations have come and gone. Each country and generation had a different style of music. Yet, they all put a lot of pride and work for each gathering and chant. All sorts of instruments, mostly percussion, are played by extremely talented artists. Certain attires are prepared for the dances that go with each song. The women would normally do most of the dancing. They would decorate themselves with beautiful linens and jewelry and attach thimbles and tambourines to their body. The men usually would play the instruments. Both sexes would s ing, even the little children. A key part in keeping their identity so strong is that the parents are strict on teaching their children the music and dance. Their lyrics tell stories about horrible times or hope for freedom in the end. These styles of music create a kind of passion and thrive to continue. Their music kept them alive. One of the most interesting things about the Roma society is how their music, being so sacred to them, changed other societies. Roma Culture :: essays research papers Roma Culture Romas, or Gypsy, have traveled all over the world starting from India, which is considered their origin however not proven, and ending up as far as Spain where their customs have influenced and changed modern day societies. These diasporas were not deliberate but rather forced on them due to their beliefs. Stereotypes have been created to make Romas look like thieves, which is where the phrase, â€Å"I’ve been gypped,† comes from. Gypsies were and still are easy to point out due to their dark skin and jet black hair making it easier to discriminate. They traveled to Egypt, Turkey, Romania, Hungary, Slovakia, France, and Spain looking for a place to call home, but no one would accept them. Some even persecuted and murdered them like in the Holocaust. However, what is most interesting is how their miseries and suffering have made them into one of the strongest cultures to survive so long. One of their biggest strengths is music. Without it, they might not still be here to day. Music by definition is â€Å"vocal or instrumental sounds possessing a degree of melody, harmony, or rhythm.† However, to the Roma people music is a form of identity, of beauty, of culture. The music heard from these people will tell a story, whether of their troubled past or just pure entertainment. Every person in the Roma society is familiar with or can chant the heartfelt lyrics and melodies that have been orally passed on or created as generations have come and gone. Each country and generation had a different style of music. Yet, they all put a lot of pride and work for each gathering and chant. All sorts of instruments, mostly percussion, are played by extremely talented artists. Certain attires are prepared for the dances that go with each song. The women would normally do most of the dancing. They would decorate themselves with beautiful linens and jewelry and attach thimbles and tambourines to their body. The men usually would play the instruments. Both sexes would s ing, even the little children. A key part in keeping their identity so strong is that the parents are strict on teaching their children the music and dance. Their lyrics tell stories about horrible times or hope for freedom in the end. These styles of music create a kind of passion and thrive to continue. Their music kept them alive. One of the most interesting things about the Roma society is how their music, being so sacred to them, changed other societies.

Gullivers Travels Part One :: essays research papers

Gulliver’s Travels Part One The first part of this novel, which consists of chapters 1-8,is very interesting and should keep the readers attention. It starts off telling of young Gulliver’s childhood. It mentions three years at college, and his dreams of being a sailor. After his brief time at school he become an apprentice to Mr. James Bates. After explaining the early years of Gulliver’s life the author begins to tell about a few of Gulliver’s voyages at sea. Eventually returning home, Gulliver spent three years at home with his family. While Gulliver was at home he started a business which soon failed. Soon after this he accepts an offer to be the surgeon upon a ship named The Antelope captained by William Prichard. On the 5th of November 1699, during his voyage on The Antelope, his ship hit a rock that was hidden by the dense fogs of the morning. Luckily he and a few of his shipmates managed to lower a lifeboat and clear the wreckage. Eventually the crew became exhausted by the hard work of paddling and the lifeboat was eventually overturned by the bad weather. Gulliver swam for almost three English miles until he reached a point in the water he could walk. Walking for what seemed to be along time he eventually made it to shore on a tropical island and immediately went to sleep. Upon his awakening, Gulliver found himself tied to the ground and surrounded by thousands of soldiers. They were no more than six inch’s tall and armed with bow and arrows, and spears. After weeks of imprisonment he became friends with the Lilliputians. After they gave him his liberty he agreed to capture a fleet of 500 man-of-war battle ships.

Analysis of Willie Stark’s Life as a Politician Essay

Can it be right to do wrong? Can we have a square circle? Can we move backwards and forwards at the same time? During Plato’s time (c. 429-347 B.C.) a long discussion had begun and carried throughout the Middle Ages that affirmed that the ruler ought to embody noble ideals and values. This tradition focuses on the virtues of justice and mercy as essential for good government. However, during the Renaissance period the author Niccolo Machiavelli turned away from these traditions and considers in The Prince what is necessary to be successful in a corrupt world. Machiavelli proclaims in his book The Prince, â€Å"A man who wishes to make a profession in everything must necessarily come to grief among so many who are not good. Therefore, it is necessary†¦to learn how not to be good, and to use this knowledge and not use it, according to the necessity of the case†. Essentially, it is the situation at the moment that determines which actions are necessary. For Machiavelli, the goal is success, not the virtue or vice of the act. He does not advocate that the successful prince should always violate the rights of others but, rather, calculate what course of action will enhance the strength and vitality of the state. In the book All the King’s Men by Robert Penn Warren, the character Willie Stark is similar to the prince; he exemplifies and exercises Machiavelli’s ideals. In All the King’s Men by Robert Penn Warren, Machiavelli’s ideals are dealt with through the political career of Willie Stark, a man that was transformed from an idealist to an opportunist because of power, a man who ultimately was assassinated, but not before he could achieve the goodness he sought to make possible. Willie Stark, the son of a farmer, began his political career when becoming the County Treasurer of Mason City. As the Treasurer of Mason City, he was an idealist, guided more by ideals than practical considerations. Willie Stark remained an idealist up until he discovered the truth about politics. He than started to believe that goodness derives from evil because there is nothing else from which to make it. This idea comes from the mature, disillusioned Willie, who had become a tough-minded politician after losing his first political job and after discovering he was manipulated by the bosses who wanted to split rural votes. After he learned about the scheme and analyzing the situation, Willie Stark realized what Machiavelli’s theory proclaimed, â€Å"A man who wishes to make a profession in everything must necessarily come to grief among so many who are not good†. Willie encountered and experienced the â€Å"grief among so many who are not good,† he encountered Harrison and his men and their political methods to try and win an election which was all made possible by corrupt men, bad men. This was a turning point in Willie’s career and life since he how believed, â€Å"Man is conceived in sin and born in corruption and he passeth from the stink of the didie to the stench of the shroud.† As he sees it, goodness is not an inherent human characteristic. People, basically, are prone to corruption and evil. Goodness has to be made. Because of the scheme Willie’s blindfold he had as an idealist was gone and he now knew that politics were not at all what he though it to be and that he had to change the way he was conducting his political campaign if he was to get anything done around here. Although Willie withdrew his name from the ballot for the Governor race, he still came out of that ordeal as a winner. Stark exposed the dirty tricks of Harrison and his men and in the process gained support from the public, therefore leading to his ultimate election for Governor the second time he ran for the position. By this time Willie, â€Å"learn how not to be good, and to use this knowledge and not use it†¦Ã¢â‚¬  He exposed to the public the corrupt men of Harrison who coerced him to run for Governor only to be â€Å"used and abused in the process;† by blowing the whistle Willie became a bad man who turned against the people who helped him come into the political spot light. Instead of being seen with bad eyes, the public sympathized with him. With all the sympathy he gained Willie managed to win the race for Governor. Once Willie became Governor he became an opportunist because of the lack of support he received and because his power was growing. Willie essentially started off as a man who rose to power by offering to save the people from their distress, during his struggles, he became corrupted by power. Willie became corrupted because he realized that in order for him to help out the people he wanted to help out the most, he had to play a â€Å"little dirty†. He was forced to bribe the state legislators in order to get his bills passed; he even went as far as blackmailing some in order to achieve his goals. Willie Stark exemplifies Machiavelli’s discourse, â€Å"to learn †¦ not to be good †¦and not use it, according to the necessity of the case†. He was vicious and ruthless at times to his enemies and then he befriended those who opposed him within the state legislator. He learned when it was appropriate to be good to people and when it was necessary to be bad to people according to each situation because he could not afford to unbalance one with the other since both were essential for being a great governor. Willie Stark was an opportunist because of power. As Machiavelli’s theory stated one must use the knowledge of when to be good and when to be bad, â€Å"according to the necessity of the case,† and when the situation presented itself, Willie was ready to follow accordingly. When the plan to build a hospital presented itself, Willie wanted to keep the hospital clean, he did not want politics involved with the hospital especially , corrupt contractors. That is why Willie did not want to give Gummy Larson, a corrupt contactor to build his hospital. In this case Willie became a bad man who turned on a man that was much like him. Both had been involved in dirty politics, but now Willie chose to be a bad man in order to keep his hospital free from corruption and politics. While dealing with this situation, Willie also chose to be a good man by trying to persuade Adam Stanton, a romantic and idealist to be the Director of his hospital, but when Adam refused the offer, Willie indirectly used incriminating information about his father, a former governor who was involved in a bribe and cover up, in order to convince him to accept the position. Ironically, Adam Stanton, the man Willie wanted to Direct his hospital ended up assassinating him. In return Willie’s men ended up killing Adam. Both were destined to kill each other since they were complete opposites, one was a man of ideas and the other was a man of fact. In the end, by the author of All the King’s Men adhering Willie’s life to Machiavelli theory of how a ruler should govern and obey by; Willie life was destined to become righteous and end up dying because of it. Willie wanted to help out the poor by building a school house, a hospital for the poor, and reworking the state’s tax structure in favor of the poor. But by the means he achieved these goals were wrong and bad which ultimately lead to his death. Even a man who wants to do good things, but uses bad methods ends up paying a harsh price for being bad while trying to do some good. In conclusion, Willie Stark was a character of good intentions who becomes tainted by the system. He was a human being who had dreams, a family he loved, and passions he yields to, among them a desire for power. The author, Warren shows Willie as a man torn between his visions of an ideal society and stark reality- what it takes in the real world to fulfill one’s dreams. Willie sacrifices his ideals for action. He is a man of stark fact, and he wants results. In the end, Willie reevaluates his life’s goals. But it is too late for change. Willie is not given a second chance. For Willie’s political activity is much like Machiavelli political activity which is like a game of chess with its rules, its proven gambits, and its successful strategies. The master player knows how to exploit the weaknesses and blunders of his opponents to maximum advantage. The goal is finding the best move, the move that wins. The qualities needed to win may be judged as vices by others, but, as Machiavelli puts it in The Prince, they are â€Å"the vices by which you are able to rule.† The crimes committed in order to preserve one’s country are â€Å"glorious crimes.† Willie essential would have believed, â€Å"a multitude is more easily governed by humanity and gentleness than by haughtiness and cruelty,† the point is that a wise ruler does whatever is necessary.

Gangsterism in the 1920’s

â€Å"The Roaring Twenties,†; what a perfect aphorism. It was certainly roaring with music and dance, but it also was roaring with gangsters. In the aspect of gangsterism, the thirties were also roaring. Americans in this time period tolerated criminals, especially those involved in bootlegging. Bootlegging is the smuggling of illegal substances. Bootlegging could have possibly been tolerated because of the recent outlaw of alcohol during this time period, known as the Prohibition. Gangsters were involved in bootlegging, prostitution, gambling, organized crime, and racketeering. Al â€Å"Scarface â€Å" Capone, Bonnie and Clyde, and John Dillinger were the headliners of this era. Gangsterism provided a risky job but maximum rewards in a time when jobs were scarce and our country was in the midst of a depression. When Congress passed the eighteenth amendment, alcohol was banned in every way from America. People who were addicted to alcohol and even those who were accustomed to the casual drink still had a demand for it. Many would pay top dollar for a drink, they didn’t think obtaining alcohol would be too immoral because it was legal just a few years back. Citizens would hold private socials and would serve alcohol to all of the guests, this was usually done by the wealthy because of the high cost of alcohol. This opened up many opportunities for those who were willing to take risks and bootleg illegal alcohol to the country. With money flowing like water to many of these gangsters, greed began to grow rapidly among them. They began to explore more demoralizing fields of work. These gangsters began to open speakeasies, which were like old west taverns with prostitution, gambling, and of course, drinking. Speakeasies always had cover charges ranging from five dollars to twenty-five dollars, depending on the price of alcohol at the time. America’s obsession for alcohol allowed the owners to charge any price they wanted. Thousands of speakeasies were located in Chicago, which meant that tens-of-thousands of speakeasies were spread around the country, with most in the large cities. So many Americans were sneaking around under the law that moral values began to dwindle. Gangsters moved up in the ranks and began more vicious crimes such as murder and massive theft. Most of these crimes were necessary to keep business alive. Murder was widespread because some people who would be paid to keep quiet would talk, in return they would be dealt with†¦very harshly. In 1929, gangsters from across the country gathered in Atlantic City, New Jersey to meet with one another. Leaders from all of the major crime syndicates attended. At the meeting, they made agreements on boundaries and a their â€Å"government† to make sure relations between groups were peaceful. Anyone who broke these rules were, again, dealt with†¦very harshly. One of the most famous crime bosses ever was Al Capone. His nickname was â€Å"scarface. † which is used as a nickname in many mobster movies. He had his own army†¦seven thousand strong. He owned ten thousand speakeasies, and he was involved in all of the traditional gangster activities such as prostitution and gambling. Many politicians and police officers were on the payroll of Capone. Because of his one-hundred million dollar annual income, he had no problem maintaining this kind of lifestyle. Capon’s most famous quote is â€Å"When I sell liquor, it’s bootlegging. When my patrons serve it on silver trays on Lake Shore Drive, it’s hospitality. † In 1929, a rival boss, Bugs Moran, began to infringe on Capone’s territory. He sent some of his â€Å"boys†, disguised as police officers, to one of Moran’s drop-off spots for alcohol. They disarmed Moran’s men and then sprayed many rounds in to their bodies, ending Moran’s career as a gangster. This is known as the St. Valentine’s Day Massacre. After the Massacre, Capone’s freedom and iron-fisted control was on the decline because of the Public Enemies List. Law enforcement tried to nail him for any offense for which they could get proof, the only one was tax evasion. Capone served eleven years in prison and left wrecked by syphilis. He died peacefully in his home and was buried next to his father and grandfather in Chicago’s west side. Other criminals took advantage of corrupt law enforcement and went on sprees of killing and looting. Bonnie and Clyde are two famous sidekicks who drove over the country committing murder after murder and robbery after robbery. After eight years of ludicrous behavior, the couple was gunned down outside of Arcadia, Louisiana by law enforcement. Because it was as if the law was a minority, the couple’s bodies were displayed as if they were prizes. Another criminal was John Dillinger, he was a pioneer in organized crime. He would time switching of guards, find escape routes, and always have a safe house. He had many informants on the â€Å"inside† that were paid to assist him. One particular time in Wisconsin, the FBI and police officers had him surrounded in a lodge and charged in to capture him and he mysteriously vanished eaving the government embarrassed. Dillinger was finally killed when he and his girlfriend were exiting the movie theatre and was met by several rounds of ammunition fired by awaiting law enforcement. Law enforcement of the day was struggling badly. It had police who were under the payroll of organized crime, police who would participate in illegal activities themselves, and morale was hard to come by. Police would not cooperate with one another and share information. The men with the still-good hearts had a desire for personal glory, the hero. he Federal Bureau of Investigation began massive manhunts to destroy gangsterism, and they finally were successful by sending many undercover agents in to the mobs themselves and secretly in to the speakeasies. The success is remembered by an image the FBI has today. It is known as the country’s premier law enforcement agency. Gangsterism was a powerful part of the twenties and thirties. Gangsterism was caused by a domino effect, beginning with Prohibition. Unlike most at the time, they received the Prohibition with open arms. It meant monopoly on liquor, which meant opportunity for money. Greed and lust for power fed these â€Å"czars† of cities, commanders of armies. Prohibition ceased after 1933 with the passing of the twenty-first amendment, which legalized alcoholic beverages. Gangsters began to fade along with their prominent source of income†¦liquor. Some of these gangsters were thrown in jail and others quit before they could be caught. When Capone was apprehended, he said, chuckling, â€Å"All I ever did was supply a demand,†