State Control and Public Control of Business - 2476 Words

1)Historical perspective on public control of business. 2)Constitutional framework of state control of business. What is business? †¢ The buying or selling of goods/services/activity of making money. However, the term is too vague. †¢ According to F.C Hooper: â€Å"business means a whole complex field of commerce and industry, the basic industries, processing and manufacturing industries and the network of ancillary services, distribution, banking, insurance, transport and so on, which serve and inter-penetrate the world of business as a whole† What is business environment? †¢ It can be defined as the total surrounding, which have direct or indirect bearing on the functioning of business. OR †¢ The set of external factors(social, political,†¦show more content†¦Elements Several elements are required in making the policies by the government. Many factors/inputs influence the development of public policy by the government. Government may determine its course of action on the basis of various factors such as economic and foreign policy concerns, technical information etc. All these factors can help shape what the government chooses to do and how it chooses to do it. Public policy goals can be ideal and oriented or narrow and selfserving. National values such as freedom, democracy and equal distribution of income and wealth to share in economic prosperity have led to the adoption of civil rights law and assistance programs for the weaker sections of the society. Narrow, self-serving goals are more evident when nations decide how tax legislations will allocate the burden of taxes among various interest and income groups. Public policy may vary but are very important to inquire whether it serves the citizens of the country whose welfare it intends to serve. Various mechanisms/instruments are being used by the government to realize their policies. In general these instruments are combinations of incentives and disincentives that government uses to prompt citizens , including the businesses to act in ways that achieve policy goals. Public policy actions always have results. Some are intended others are unintended. SinceShow MoreRelatedBusiness Operations: Financial Issues1854 Words   |  7 Pages Business operations: Financial issues Introduction The problem to be investigated was the outcome of the ethical dilemma that occurred within the business circle leading to the violation of financial regulations and consequently eroded the confidence of shareholders on the U.S capital market. Examples of the violation of financial regulations were Enron, WorldCom and Lehman Brothers scandals that led to the collapse of the three companies. To restore the public confidence of the U.S capitalRead MoreEssay on Inflation and Absolute Power715 Words   |  3 PagesThroughout the years the government has gained complete control over money and its development. The government wanted control because it believes that it is easier to acquire monetary assets if they have the control over all money and, at the same time, eliminate the middle-man of trade. With the ever growing population the government came up with a way to counterfeit money to keep up with the demand of money. This counterfeiting of money created inflation. Inflation happens when there is moreRead MoreThe During The Progressive Era989 Words   |  4 Pageswith rapid industrialization in the 19th Century by bettering society through governmental, business, and social reform. Reform of government, which had become increasingly corrupt through political machines and special interest groups, was one focus of the progressive movement. Because government officials often aligned themselves with big business or bought their way into office, the American public lost faith in the integrity of politicians. One type of journalist, the muckraker, revealedRead MoreSarbanes Oxley Act of 2002 Essay1294 Words   |  6 PagesSarbanes-Oxley Act of 2002 ACC/561 Sarbanes-Oxley Act of 2002 Following a number of discovered fraud scandals committed by well-known corporations and in order to restore public confidence in the stock market and trading of securities, the United States congress passed the Sarbanes-Oxley Act in the year 2002. As a result of the act endorsement by the New York Stock Exchange and the Securities and Exchange Commission, among many other national overseeing committees, a number of rules and regulationsRead MoreBlack Money1299 Words   |  6 Pagesand the psychology formed the backdrop of what followed subsequently. (ii) Controls and licensing system:  The system of controls, permits, quotas and licenses which are associated with misdistributions of the commodities in short supply results in the generation of black money. The Wanchoo Committee explaining this factor as a source of black money observed, â€Å"In spite of the vigilance exercised by the Government, controls and regulations came to be used by the unscrupulous for amassing money forRead MoreThe American Public Policy Process966 Words   |  4 PagesThe American public policy process is a system that consists of laws, regulatory measures, action items, and funding priorities controlled by the elected representatives. The public policy process system that is in place within the federal government was developed within the framework of the United States Constitution and those with special interests. Within the current system of policy process utilized by the federal government America’s affluent community holds the greatest in terests. Over theRead MoreAuditors in the Business World1642 Words   |  7 Pagesin the business world. However, accounting is divided into three major fields, which are public accounting, private accounting, and not-for-profit accounting. In public accounting expert services are provided by certified public accountant (CPA) to the public the same way a lawyer serves clients. Auditing plays a major role in public accounting; they examine the reliability of financial statements of entities and express an educated opinion. Taxation is another essential part of public accountingRead MoreEconomic Viewpoint of the Circular Flow Model939 Words   |  4 PagesEconomic Activity, 1999). Consumer spending drives the amount of business investments, which, in turn, creates more jobs that allow consumers more money to spend. When employment drops, jobs decrease, leaving consumers with less money to spend, which slows the economy. As employment rises, jobs are created that allow consumers m ore money to spend that speeds up the economy. When the government reduces spending, less money is put into public programs that in turn create jobs in the economy. As a resultRead MoreThe Ethics Of The Sarbanes Oxley Act Of 2002 ( Sox )858 Words   |  4 Pagesexamples of a fraud response plan the small family business could have implemented to refrain the perpetrators from fraudulent incidents, protect organizational assets and the organization’s going concern. Corporate fraud was the cornerstone for the strict implementation of the Sarbanes-Oxley Act of 2002 (SOX). SOX implements many compliance regulations, but one of its regulations, specifically Section 404, relates to an organization’s internal control procedures with the purpose of protecting organizationalRead MoreLeadership : A Successful Network Of Collaboration, Together We Create Mutual, Continuing Value?956 Words   |  4 PagesMission: We will display exemplary leadership in providing high quality, timely advice and services to the firm. Vision: Our vision helps as the framework for our roadmap and guides every surface of our business by describing what we need to achieve in order to continue achieving sustainable, quality growth. People: Be a great place to work where people are stimulated to be the best they can be. Partners: Nurture a winning network of collaboration, together we create mutual, continuing value. Planet:

Entrepreneurship - 4156 Words

Entrepreneurship Challenges in 21st. Century | | What is Entrepreneurship? The definition of entrepreneurship has been debated among scholars, educators, researchers, and policy makers since the concept was first established in the early 1700’s. The term â€Å"entrepreneurship† comes from the French verb â€Å"entreprendre† and the German word â€Å"unternehmen†, both means to â€Å"undertake†. Bygrave and Hofer in1891 defined the entrepreneurial process as ‘involving all the functions, activities, and actions associated with perceiving of opportunities and creation of organizations to pursue them’. Joseph Schumpeter introduced the modern definition of ‘entrepreneurship’ in 1934. According to Schumpeter, â€Å"the carrying out of new combinations we call†¦show more content†¦Although many current theories on entrepreneurship agree that there is an inherent component of risk, the risk-bearer theory alone cannot explain why some individuals become entrepreneurs while others do not. Thus, i n order to build a development model of entrepreneurship it is necessary to look at some of the other characteristics that help explain why some people are entrepreneurs; risk may be a factor, but it is not the only one. Modern school of thought claims that the role of the entrepreneur is that of an innovator; however, the definition of innovation is still widely debatable. Kirzner suggests that the process of innovation is actually of spontaneous â€Å"undeliberate learning†. Thus, the necessary characteristics of the entrepreneur is alertness, and no intrinsic skills-other than that of recognizing opportunities-are necessary. Other school of economists claims that entrepreneurs have special skills that enable them to participate in the process of innovation. Leibenstein claims that the dominant, necessary characteristics of entrepreneurs is that they are gap-fillers i.e. they have the ability to perceive where market fails and to develop new goods or processes that he market demands but which are not currently being supplied. Thus, entrepreneurs have the special ability to connect different markets and make up for market failures and deficiencies. Though the idea that entrepreneurs are innovators is largely acceptable, itShow MoreRelatedEntrepreneurship1111 Words   |  5 PagesEntrepreneurship Entrepreneurship is the act of being an entrepreneur or one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods. This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as Startup Company); however, in recent years, the term has been extended to include socialRead MoreEntrepreneurship1326 Words   |  6 Pages‘Critically evaluate the key theoretical developments of the term Entrepreneurship’. Student Name : Jonalee B. Magtoto Student ID : 1009007374 Matriculation No: 20037830 Date: June 13th 2013 Word Count : 2,091 words Introduction: Entrepreneurship as a lot of meaning but for me it divided into two separate fundamental, the first part debate high involveRead MoreEntrepreneurship1228 Words   |  5 Pagesthat has the right of control is hired from the owner. Page 2 of 4 Similarities and differences between a manager, a business owner and an entrepreneur By Henry Amm Modern approaches like ‘corporate entrepreneurship’ try to overcome those boundaries by incorporating advantages of entrepreneurship into common management. Companies try to facilitate diversification with internal development workshops. That makes activities necessary, in areas that are usually only loosely related to the current ‘domain’Read MoreEntrepreneurship4409 Words   |  18 Pages1 LESSON- 1 ENTREPRENEUR AND ENTREPRENEURSHIP Dr. Jyotsna Sethi STRUCTURE 1.0 Introduction 1.1 Objectives 1.2 Entrepreneurship as a Career Option 1.3 Concepts and Definitions 1.3.1 Entrepreneur 1.3.2 Entrepreneurship 1.3.3 Enterprise 1.3.4 Difference between Entrepreneur and Entrepreneurship 1.4 Role of Entrepreneurship in Economic Development 1.4.1 Entrepreneurship and Economic Development 1.4.2Entrepreneurship and Education 1.5 FunctionsRead MoreEntrepreneurship1106 Words   |  5 Pagesenterprise without undermining his/her relationship. In this last case a good entrepreneur should be free from personal commitment, at first, at least, because his/her work, or his/her relationship, could be compromised. Q2: Inc. Magazine claims, â€Å"Entrepreneurship is more mundane than it’s sometimes portrayed †¦ you don’t need to be a person of mythical proportions to be very, very successful in building a company.† Do you agree? Explain. 2. I don’t agree with the sentence above; I think that a temporaryRead MoreEntrepreneurship Should Be Aware At The World Of Entrepreneurship Essay1531 Words   |  7 PagesPROVIDED MANY OPPORTUNITIES ANYONE PLANNING TO ENTER THE WORLD OF ENTREPRENEURSHIP SHOULD BE AWARE OF ITS POTENTIAL DRAWBACKS Introduction:- Entrepreneurship is defined as the practice of beginning a new trade or reviving an existing business, for capitalizing on fresh opportunities. The statement were analyzing today is all about entrepreneurship. The author here is trying to explain that like every coin has two sides, entrepreneurship also has benefits and drawbacks. Every year the number of peopleRead Moreentrepreneurship2937 Words   |  12 PagesSCHOOL OF ENGINEERING AND INFORMATION TECHNOLOGY ASSESSMENT COVER SHEET Student Name Navpreet Kaur Student ID S265457 Assessment Title Case Study 1 Unit Number and Title PRT503 Entrepreneurship for Professionals Lecturer/Tutor Mr. Jamal El-Den Date Submitted 07 August 2014 Date Received OFFICE USE ONLY KEEP A COPY Please be sure to make a copy of your work. If you have submitted assessment work electronically make sure you have a backup copy. PLAGIARISM PlagiarismRead MoreThe Concept Of An Entrepreneurship1345 Words   |  6 PagesThe definition of an entrepreneurship is a commonly argued point, with several definitions given by many different people. The Business in Action textbook defines entrepreneurship as the combination of innovation, initiative and willingness take risks required to create and operate new businesses and an entrepreneur as a person with positive, forward-thinking desire to create profitable, sustainable business enterprise. According to this definition, a small business owner could definitely be classedRead MoreSocial Entrepreneurship1926 Words   |  8 PagesRose Spiegel Rationale 5.7.13 Everyone describes social entrepreneurship differently. While many have been able to describe the traits and features of a social entrepreneur there doesn’t seem at all to be a consensus about the definition of what constitutes the field of social entrepreneurship. Susan Davis and David Bornstein in their book, Social Entrepreneurship: What Everyone Needs to Know define social entrepreneurship as â€Å"a process by which citizens build or transform institutions to advanceRead MoreCorporate Entrepreneurship1295 Words   |  6 PagesCorporate Entrepreneurship Corporate Entrepreneurship can be seen as the process whereby an individual or a group creates a new venture within an existing organization, revitalizes and renews an organization ,or innovates. Zahra’s(1986) definition of corporate entrepreneurship suggests aformal or informal activity aimed at creating new businesses in established firms through product and process innovations and market developments,whereas sathe(1985) defines corporate entrepreneurship as a process

Critical Period Hypothesis and Acquisition of Language - Samples

Question: Discuss about the Critical Period Hypothesis and Acquisition of Language. Answer: The process by which the humans acquire the ability to understand and form a sense of a coherent language structure is known as language acquisition, through this process the human beings create and use the wordsto make sentences to communicate with others.Language acquisition most commonly refers tothe acquisition of first language, which deals with the study of the infants and their acquisition of their respective native language. The acquisition of second language differs from the first language acquisition, it deals with the children or the adults learning other languages than native language. There are some theories about the acquisition and development of language in the humans one of which is the Critical Period Hypothesis theorized by Eric Lenneberg, the hypothesis states that there is a certain critical period in the development and acquisition of language in human beings and if that age is crossed then the individual faces certain problems in learning language. This essay w ill argue the importance of the critical age hypothesis in the development of language in humans. Genie started learning language when she was almost 14 years old, after she was discovered it was observed that she had almost no skill in language or proper communication skills. She did not have control over the organs of speech (Curtiss et al., 1974). After she was taught by the linguists and the psychologists her language acquisition showed that even after suffering from tragic isolation for a long period of time and absence of vocabulary or language, she started showing a bit of progress in phonology, she could pronounce several sound sequences while imitating them but she did not use spontaneous speech till five months into the research. She gained quite a bit of vocabulary as well but her grammar did not improve, she could combine two sentences for example cat hurt dog hurt as cat dog hurt but the there was no use of grammar. Her syntactic acquisition, was also much slower than any normal child (Curtiss et al., 1974). The language development of Genie was different from that of the normal children in several aspects. The phonological words were a lot different for Genie than the normal children, the early two syllable words that she spoke were not reduplicated which normal children did speak. She had no intonation and while the normal children learns nouns at first, Genie learned all the nouns pronouns and verbs but was not able to put it into coherent sentences. In the comprehension training she was unable to understand the word order and was also unable to understand passive sentences. She omitted the verbs, objects and subjects from the sentences. In case of negative sentences the words she was able to speak was the angry ones. She was able to say "stop it," "no more," "no," and her stock of negative words were very few (Curtiss et al., 1974). In case of interrogative sentences when she was asked a question she used to respond by repeating the last words of the sentence uttered by the speaker, also she was never able to use any interrogative questions. The study of ASL or American Sign Language is important to contribute to the study of Critical Period Hypothesis as the study of sign language with the deaf and dumb children more evidently proves that the ability of acquiring a language decreases with the increase in age of an individual (Newport, 1990). The three groups of participants in the Newport study were the Native, Early and Late Learners. Native learners who already had exposure to the ASL from their birth, they were raised by their deaf parents and had an idea about the language from a young age. The second were the Early learners who learned ASL after they were taught by their peers who were also deaf at the age of 4-6 (Newport, 1990). The third group comprised of Late learners the first time that they were exposed to ASL was with the help of their deaf peers, they were more than 12 years of age at the time they learned the language or during the period when the tests were conducted (Newport, 1990). The results of the first ASL study suggests that a wide range of studies shows that acquisition of language occurs successfully in the learners after they have overcome certain primary problems (Ron, 2015). The purpose of these experiments were to find out how the language acquisition was affected with the increase of age in the subjects and after the tests were complete it was found that the children who were taught the language at the age of 12 had a lot less improvement in the development of the language, while the children who had early exposure to ASL they showed far better response to the experiments. In case of syntactical and morphological competence an experiment was conducted on the subjects, they had to listen to a recording consisting 276 short and simple sentences and they were asked whether the sentences were correct or not (Newport, 1990). The test score showed that the children who had early exposure to the language were more able in determining which of the sentences were correct and which were wrong, thus proving that the effects of age of acquisition are effects of the maturational state of the learner (Granena, 2016). In the process of comparing both the case studies, the experiments conducted on Genie and the experiments conducted on the deaf children and ASL study proves that the claims made in the Critical Period Hypothesis are true (Mayberry Kluender, 2017). In case of Genie it was seen that although she made some progress in certain aspects of language acquisition yet she had various problems related to phonology, grammar acquisition and in forming interrogative sentence (Choubsaz Gheitury, 2017). Although she made progress the researchers were unable to comment on the extent of improvement of language acquisition process in the future. In the ASL experiments the results were almost similar, the children who had been exposed to the language in their early age they were able top the experiment results (Diaz, 2016). Both of the studies prove that to acquire a proper form of language the individuals are required to be exposed to their respective native languages from an early age (Strid, 2017) . To conclude, it can be said that the critical period hypothesis which says that from childhood throughout adolescence, this period of time is perfect and most suitable for the acquisition of first and even second language acquisition. The external and inter factors prevent the adults to acquire a new language at that age. Judging from both the experiments this statement can be said to be true that Critical Period Hypothesis holds paramount importance in the development of language in human beings. References Choubsaz, Y., Gheitury, A. (2017). Is semantics affected by missing a critical period? Evidence from the Persian deaf.Journal of psycholinguistic research,46(1), 77-88. Curtiss, S., Fromkin, V., Krashen, S., Rigler, D., Rigler, M. (1974). The linguistic development of Genie.Language, 528-554. Diaz, C. (2016). The critical period hypothesis. Granena, G. (2016). Part 1: Age Differences, Maturational Constraints, and Implicit and Explicit L2 Learning.Major Research Issues in SLA, 9. Mayberry, R. I., Kluender, R. (2017). Rethinking the critical period for language: New insights into an old question from American Sign Language.Bilingualism: Language and Cognition, 1-20. Newport, E. L. (1990). Maturational constraints on language learning.Cognitive science,14(1), 11-28. Ron, C. (2015). Relationship between the Phonetic Aspect of Second Language Acquisition and Age: Testing on the Critical Period Hypothesis in a Selected Function of Language.The annals of Gifu Shotoku Gakuen University. Faculty of Foreign Languages,54, 15-28. Strid, J. E. (2017). The Myth of the Critical Period.TESOL Journal,8(3), 700-715.

Nestle Coursework free essay sample

EXECUTIVE SUMMARY This coursework basically is an analysis of the NESTLE MAGGI NOODLES and the various strategic issues associated with it. The analysis is done in five parts which help us in implementing our company’s future strategy. The first part basically briefs us about the external environment of the noodles industry by analysing various models like the porters five forces, pest analysis, product life cycle, Environment basics, competitive analysis key success factors, segmentation target and positioning and the major opportunities and threats facing the company from other companies. The second part talks about the company internal performance which helps us in gaining a competitive advantage in the Noodles Industry. It basically talks about the Nestle’s activities associated with its human resource marketing and sales department, service sector, its R D team, infrastructure set up, procurement policy and also the inbound and out bound logistics. It also analyses the company’s ratio in order to know its growth rate. We will write a custom essay sample on Nestle Coursework or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The third part basically gives recommendation regarding the future strategy which the company should be adopting at SBU and corporate level by analysing the generic strategic option, expansion method matrix and the growth share matrix. The fourth part is basically our suggestions to the various changes needed regarding the implementation of different policies, structures in the company in order to overcome our main strategic issue. The last part basically talks about the advantages and disadvantages of the various models used in the entire coursework. INTRODUCTION Maggi 2 minutes a noodle is a very famous brand of Nestle India was introduced in 1982 and is most popular instant amongst the noodle lovers as it has the highest consumption rate as compared to other noodles brands in the country and also its easy affordability has added to it success in the Indian market. At present it is offered in 6 different flavours which are, Masala, Tricky tomato, romantic capsica, and thrill in curry, chicken and Atta noodles. Besides Maggi noodles other products are also available under the MAGGI brand which have helped in increasing its popularity as well known FMCG food product. EXTERNAL ENVIORNMENT ANALYSIS SUCCESS KEY FACTORS COMPETITOR ANAYSIS PORTERS FIVE FORCES NESTLE MAGGI NOODLES INDUSTRY LIFE CYCLE ZZZZ ENVIORNMENT BASICS PESTLE ANALYSIS PEST ANALYSIS: 1. POLITICAL ANALYSIS: Government has laid down strict restrictions regarding advertisement of junk food for children under the age of 16 as per the foodstuff act in 2007. 2. ECONOMICAL ANALYSIS: Rise in the prices of raw material like salt Maida, manufacturing costs as well as the packaging costs is a major economic crisis facing the food industry due to more demand and less supply of the agricultural commodities. . SOCIAL ANALYSIS: People are becoming health conscious and with the changing lifestyle there is an increase in the demand for quick and easy to cook food products. 4. TECHNOLOGICAL ANALYSIS: NESTLE makes use of leveraging superior technology in order to provide customers with high quality products. Nestle gets technology under the general licence agreement from the nestle group for satisfyi ng innovation and reformation. Nestle makes use of gene technology in manufacturing food products like noodles. KEY SUCCESS FACTORS: 1. Maggi was the first to be introduced in the instant noodle segment in 1982 therefore it has the first mover advantage as compared to the other brands of noodles. 2. It showed continuous changes with regard to its themes and the flavours since 1982 and has also repositioned itself as a healthy snack from 2 minute noodle. 3. Maggi is a much localized brand as it never adopted English tag line unlike its competitors so Indian people prefer it over the other brands. 4. Another key success factor for the Maggi noodles is that it is available in food stores whether urban or local unlike the other brands. ENVIORNMENT BASICS: MARKET SHARE: The brand Maggi has 80% market share in nestle India as per the June 2010 quarter. MARKET GROWTH: The brand is enjoying 20% growth per anum as per the JUNE 2010 quarter. POTENTIAL ENTRANTS THREAT| INDUSTRY RIVARLY| SUPPLIERSBARGAINING POWER| BUYERSBARGAINING POWER| THREA OF SUBSTITUES| (LYNCH, 2003) PORTERS FIVE FORCES MODEL: 1. POWER OF SUPPLIERS: The bargaining power of suppliers is very low in the noodle industry because there are so many suppliers for the raw materials and the inputs used in manufacturing process. The suppliers are spread all over the country. 2. POWER OF BUYERS: The bargaining power is also very low in the noodle industry because there are so many noodle brands and all are of the same price almost with very little difference in the taste. 3. THREAT OF SUBSTITUTES: The threat of substitutes in the noodle industry is very high because of variety of substitutes available in the market like soups with noodles called the soupy noodles, pastas, macaroni and other fast foods like pizzas burgers etc. 4. THREAT OF NEW ENTRANT: The threat of new entrants for Maggi is increasing because more and more FMCG companies are coming up with instant food products and also because there is not much capital requirement required for it. 5. COMPETITIVE RIVALRY: Level of competition is very high because different brands have different flavours and variety, packaging styles and the attractive advertisement COMPETITIVE ANALYSIS: The major competitors of MAGGI are ITS SUN FEAST YIPEE, GSK FOODLES, Nissin’s TOP RAMEN AND WIA WIA by Chaudharys. Top ramen which is the 2nd most top brand in noodle segment is trying to compete with Maggi since 18 years. In the market it was the first to innovate with cup noodles and is a market leader in it with 90% market share. Its strength is its cost effective technique and it weakness was its late entry into the market and non localization unlike maggi. Yippee plus point is that noodles can even be eaten after sometimes after being cooked whereas In case of Maggi they becomes sticky PRODUCT LIFE CYCLE ANAYSIS: D B GROWTH C A 1983 1997 1999 2004 2009 2010 TIME When Maggi Noodles were introduced in 1983 they were at an introduction stage. In 1997 they reached the growth stage and in the year 2000 they experienced a decline in their sales but eventually there sales again started to grow for years since 2001 and reached a maturity stage by 2010. STPD ANALYSIS: Segmentation is done on the basis of changing lifestyle and the habits of the people residing in metro cities. Maggi noodles basically target the working women and the other office going people. However their main targets are the school going kids and the youngsters. It is positioned in the market with its â€Å"2 MINUTE NOODLE† AND â€Å"EASY TO COOK AND GOOD TO EAT† strategy and is differentiated in terms of its flavours, taste and its packaging style. OT ANALYSIS: 1. OPPORTUNITIES: Growing demand of instant noodles in the rural areas, increase in the likeness of the Indians towards Chinese food along with rise in the figure of working youngsters. . THREATS: There are many competitors in the market selling instant noodles with competitive prices for example TOP RAMEN costs Rs 8 in comparison to Maggi which is sold at Rs 10 INTERNAL ENVIORNMENT ANALYSIS VALUE CHAIN ANALYSIS: HUMAN RESOURCE TECHNOLOGICAL DEVEELOPMENT PROCUREMENT INBOUND PRODUCTIVITY OUTBOUND MARKETING S ERVICES LOGISTICS LOGISTICS SALES (LYNCH, 2003) INFRASTRUCTURE: The Company has 7 factories located in different parts of he country like Moga in Punjab, Nanjangud in Karnataka, Choladi in Tamil Nadu samalkha in Haryana, Ponda and Bicholim in Goa and Pantnagar in Uttarakhand. Also it has 4 branch offices which are located at Delhi, Mumbai, Chennai and Kolkata with its head office situated in Gurgaon in Haryana. It has recently opened a new plant in Mysore which is its 8th plant and is planning for its 9th one in Himachal Pradesh. PROCUREMENT: The Company gets its equipments from the suppliers of automatic and instant noodles machine, packing machines, coating plants and food processing machines. RESEARCH AND DEVELOPMENT: Nestle has total of 29 research, development and technology centres all over the world. Nestle is planning to open its 30th research and development centre in India in Manesar, Haryana with an investment plan of 230 crore. It will start operating from July 2012 with a team of 40 scientists who will focus on decreasing nutritional insufficiency in India. HUMAN RESOUCE: The company’s HR policy aims at employing people with professional skills, personal attitude and a sense of commitment who possess values that match with the culture of organization for the long term sustainable growth of the company. The employees are considered as company’s valuable assets and are therefore trained rigorously through empowerment programmes. It has employed 250000 people till now which include farmers, suppliers of raw material, packaging, other goods and services. INBOUND LOGISTICS: The company gets its raw materials from Paras factory in Moga who is a supplier for spices. Maggi gets its other raw materials from manufactures of wheat flour, noodle powder, sugar, onion powder, palm oil and garlic powder, salt, hydrolysed peanut protein and citric acid. It buys all its raw materials in bulk quantity and stores them. PRODUCTIVITY: Maggi noodles are ISO certified and 14001:2004. It is following a lean manufacturing system. OUTBOUND LOGISTICS: From the factories the maggi noodles are straight sent to carry forward agencies which provide warehousing services and are located in different state. The CFA then send its over to wholesalers, exporters of instant noodles and the retailers as per the demand of the product. The main retail outlets are small grocery stores, general stores, big bazaar, spencers, reliance fresh, modern bazaar, Wal-Mart in big cities and Kirana shops in villages. MARKETING AND SALES: Nestle has done a lot of adds in television to promote the sales of maggi noodles firstly with tag lines like MUMMY BHOOK LAGI ‘BAS 2 MINS† and â€Å"FAST TO COOK AND EASY TO EAT†, secondly by making their ads adventurous and funny with famous characters like PANKAJ AND DAVID and then by focusing on â€Å"HEALTH AND NUTRITION† by introducing vegetable Atta noodles, Dal Atta, rice noodles and other flavours. In order to promote their sales they went to various offices and schools and held campaigns. They also came up with the scheme of free giving free packet of noodles to their customers on their return the shopkeepers the empty packet. This is the most important area which ads value to the product. SERVICES: Encase of any complaints regarding the product the consumers can directly visit the nestle consumer service centre in New Delhi or can email the service manger at [emailprotected] nestle. com . Besides that it provides certain services to the society by conducting education and training programs for village children near its factories, helping in public parks preservation and by assisting the provision of clean drinking water and blood donation camps. SW ANALYSIS: 1. STRENGHTS: its major strength is its brand loyalty and its market leader position. Also its new flavours, widely spread distribution channels all over the big cities and its impulsive advertising policy add to its success. 2. WEAKNESS: the major weakness associated with Maggi noodles is that it is considered as junk food due to its unhealthy ingredients. Another problem is that sales of maggi noodles rely only on its Masala flavour. RATIOS CHART: NESTLES YEARLY RATIOS | 2010| 2009| 1. GROSS PROFIT MARGIN| 18. 2%| 17. 58%| 2. RETURN ON CAPITAL EMPLOYED| 135| 160| 3. CURRENT RATIO| O. 63| 0. 0| 4. EARNING PER SHARE| 84. 91| 67. 94| RATIO ANLYSIS: The company’s gross profit margin which is calculated by gross profit/sales*100 is 18. 2% and 17. 58% respectively for the years 2010 and 2010. This means that there is an increase in the profits obtained by the company on selling the products before incurring any expenses in 2010 as compared to 2009. The return on capital employed of N ESTLE is 135 in 2010 and 160 in 2009 which is calculated by profit before interest and tax / total long term liabilities *100 which means that in 2009 the firm generated more return on its investment. The current ratio is 0. 6 in 2009 and 0. 63 in 2010 which means that the company has slightly more cash in hand in 2010. Also there is an increase in the EPS which is calculated by profits after tax and exceptional items/number of share issued, which was 84. 91 in 2010 and 67. 94 in 2009 means there is a greater return for the shareholders in 2010 . PRESENT STRATEGIES AND FUTURE RECOMMENDATIONS Presently NESTLE is earning 44% of its income from milk maid products, 28% from cooking aid and readymade products and 14% from beverages. NESTLE is planning to increase the quality and range of its culinary products like MAGGI BHUNA MASAL. COCONUT MIX POWDER,PIZZA SAUCE,MAGIC CUBES, MAGGI SOUPS and ETC by investing more in them as compared to its other products like the MAGGI NOODLES, NESCAFE which are having a competitive edge over its other competitors in the market. Nestle should also adopt innovative marketing strategy in Oder to increase the sale of its certain products for example it can give its customers a free small maggi noodles packet with a big bottle of MAGGI TOMATOE KETCHUP. It should build up its distribution channels more and more in the rural areas by supplying the retailers and wholesalers with all the NESTLE products and not just specific one like Maggi noodles. The chairman of NESTLE is planning to launch new category of products in the Indian market keeping in mind the rising price of wheat, sugar and milk , the investment in the new products will thus help in decreasing the overall cost of production and in turn help the company in sustaining the operating margin. BUSINESS LEVEL STRATEGY OPTIONS 1. GENERIC STRATEGIC OPTION Competitive advantage COST LEADERSHIP| DIFFERENTIATION| FOCUS | Competitive scope (LYNCH, 2003) Presently maggi noodles is enjoying cost leadership position as it has a competitive edge over others but keeping in mind the growing demand for non vegetarian food in the Indian society and also due to more and more preference being given to the ready made products which are easy cook there is a instant need for variety which is the spice of life therefore our future strategy technique is to bring in DIFFERENTIATION in the maggi noodles by introducing new flavours of maggi for the NON VEGETARIANS like THAI CURRY NOODLES, SHRIMP FLAVOUR, EGG CURRY NOODLES, FISH CURRY NOODLES , TIRYAKI NOODLES and CHICKEN SAUTE NOODLES with small pieces of chicken in them in addition to the simple MAGGI CHICKEN NOODLES which is available in the shops at present. Maggi should also try to bring difference in the style of its packaging by making use of TETRA PACKS or PAPER BAGS which are more eco friendly then the plastic packaging. Also there can be different designs made on different flavours of maggi noodles for example we can have a fish drawn in the noodles on the pack for fish curry noodles and same packaging strategy for the vegetarian flavours. . MARKET OPTIONS MATRIX PRESENT NEW MARKET PENATRATION| PRODUCT DEVELOPMENT| MARKET DEVELOPMENT| DIVERSIFICATION| PRESENT NEW (LYNCH, 2003) According to the above matrix maggi noodles is currently following the market penetration strategy but our future strategy for the noodles will be PRODUCT DEVELOPMENT in order to make use of company’s surplus production capability, to avoid the entry of new competitors, to establish the organizations image as a product modernizer and basically in order to safeguard the market share of Nestle. We can do this by introducing more snacks under this category called maggi for example biscuits, wafers, roasted namkeens, jams and bread and also breakfast cereals like oats, corn flakes, muesli etc. 3. EXPANSION METHOD MATRIX COMPANY INSIDE OUTSIDE INTERNAL DEVELOPMENT| ALLIANCEMERGERFRANCHISEJOINT VENTURE| EXPORTINGGLOBAL OPERATIONSOVERSEAS OFFICE| MERGERACQUSITIONJOINT VENUTRETURKNKEY| HOMECOUNTRY GEOGRAPHICAL LOCATION INTERNATIONAL (LYNCH, 2003) The nestle is planning to export its maggi noodles specially the new non vegetarian flavours to countries like HONGKONG and Thailand ,Korea, Bahrain and Singapore where it is not very popular and plans to ensure its availability in the main supermarkets of these countries and not just the Indian stores . This step will also help to a great extent in increasing the market growth rate and the popularity of the maggi noodles all over the world also it will be available at almost the same price as in INDIA with a very slight margin in order to increase its sales and acquire market share in these Asian countries. . GROWTH SHARE MATRIX HIGH RELATIVE LOW RELATIVE MARKET SHARE MARKET SHARE STAR| PROBLEM CHILD| CASH COW| DOG| HIGH MARKET GROWTH RATE LOW MARKET GROWTH RATE (LYNCH, 2003) Nestle maggi noodles are currently CASH COW as the market growth rate is not very high for maggi at present although it has the highest market share in the noodles industry. The main reason is that it purchased repeatedly by the same consumers; there are no new consumers for the product. However our main focus is to become a star by increasing its nutritional content and replacing Maida with some high fibre content but which taste similar to it in order to increase its sales not only among the children and the youngsters but also among the middle and the old age group. IMPLEMENTATION PROCESS OF NEW STATEGIES Nestle is adopting a selective implementation strategy because it wants to introduce new non vegetarian flavours under its Maggi noodles in Indian market and in some other countries as well. This implementation process is going to be very beneficial for our company because we don’t require separate production plants for this purpose as our main base product which are noodles will remain same but only difference is going to be there in the taste of masala which will be made separately for different flavours. Mainly we plan to have a small demarcation by have new manufacturing blocks in separate corners each of our existing factories where we can keep our non veg stock and also we will have a different assembly lines for veg and non veg Maggis basically this will help our company in achieving economies of scale. Also in order to achieve this aim it needs to ensure a high level of quality check because while manufacturing non vegetarian flavours one has to be very sure about certain factors relating to hygiene of the noodles so that it does not have an adverse impact on the health of the people therefore the company needs to have a new group of managers in all its factories which will only take care of the quality aspect of the product. Also as we plan to export our product to some Asian countries we plan to hire a team of sales managers in those countries who will be marketing our product out there but as we also want to ensure its sales at a less price for that purpose we will have to strong finance department who will manage the costs in an effective manner. For example at present in countries like Hong Kong, Singapore, Thailand etc it is available for 60 RS and is hardly purchased so we would be selling it at 30 RS by giving the consumers a 50% discount in order to increase our sales. Again Inoder to control our costs e will balance it by cutting on our advertising expenditure and instead of showing adds on Television we will have stalls in the malls not only in India but also in countries where we would be exporting our Maggi because in today’s date maximum crowd is found in such places, this will give our company dual advantage by increasing peoples awareness regarding the flavours and balancing our cos t budget, the stalls main function will be basically to make people taste the new and different flavours so that they know their choice which will then become easier for them to pick up from the stores and besides Maggi noodles will also sell some other culinary products of Maggi like the soups, sauces, pickles and other Maggi snacks. Managers of our factories in India will also build tie ups with the distributors in the export countries in order to ensure the availability of our Maggi noodles in the main supermarkets over there besides the few Indian stores where it is currently available. Other important things which our company needs is a new technological base for implementing changes in strategy of our deigns and packaging department for our packets by employing some new creative and technologists and by tying up with the new suppliers and dealers of paper material in place of plastic. ADVANTAGES AND DISADVANTAGES OF THE TOOLS USED FOR ANALYSIS The reason I choose pest analysis is because it helps in estimating the political, social, environmental and technological factors that impacts our decision to choose a strategy as it makes us aware about our overall budget that is the cost of production that will be incurred during its manufacturing, also tells us whether our food product is in demand or not and is consumed by which particular segment of the population. We also get an idea regarding how feasible it is for the firm to export and import the food product and what are the various restriction and regulations imposed on it by the government. It also helps us in deciding our base for RD activities. It gives us an overall knowledge about an FMCG INDUSTRY’S external environment at the same time it very disadvantageneous for the organization due to the instant changes taking place in our society and also a large collection of data makes it a complex situation for the company to do the analysis. The second most important tool is the value chain analysis which defines the company’s core competencies and with the help of these activities the firm can gain competitive advantage by increasing the amount of price charged from the customers over the costs price of its value chain activities basically it helps us in knowing about the firms internal environment. The third tool is the porters five forces tool which helps us in knowing about our competitors who are planning to enter the market and the level of competition among the existing players in the industry, the various substitutes that are available in the market, how much different is the product from its substitutes and at what cost they can switch to other products, concentration of the buyers and suppliers and their dominance in that industry. It also helps in gaining information about other supplier’s methods and cost and is also aims at increasing its incentive and making a direct link with its consumers. Overall this tool helps us in gathering knowledge about the competition prevailing in the industry but again it has a major disadvantage of not being applicable in today dynamic business environment where we have so much variety in terms of our FMCG products. The fourth tool is the swot analysis which talks about the various strengths, weakness, opportunities and threats of our noodles brand. It basically helps us in working towards improving our weakness and the threats facing our noodles and also keep up with our strengths rather make them stronger and grab the upcoming opportunity. Another tool used like the environmental basics which helps us in finding our products market share, market sixe and market growth rate , all these factors help us in building strategies to increase the current market growth rate and the market share. The last tool used is the product life cycle tool which helps in analysing the stage at which our product is in the market presently, whether it is the introduction, growth, maturity or decline and how it has reached at that stage over the past years. It thus gives us an idea as to what stage it will likely be in the coming years. REFRENCES www. scribd. om/ /Impact-of-Socio-culture-Environment-on-the-Launch (Accessed on 4/2/2011) www. businessreviewindia. in/ india/nestle-india-faces-new-challenges (Accessed on 6/2/2011) www. scribd. com †º Presentations †º Business/Law(Accessed on 7/2/2011) www. slideshare. net/ /market-penetration-of-maggie-noodels (Accessed on 10/2/2011) www. singaporeaninlondon. com/2008/ /maggii-myojo-and-me. htm (Accessed on 10/2/2011) uk. answers. yahoo. com †º †º London (Accessed on 10/2/2011) www. scribd. com †º Presentations †º School Work(Accessed on 15/2/2011) www. scribd. com/doc/6519321/Maggi-2-minute-noodle (Accessed on 16/2/2011) www. icmrindia. org †º Business Case Studies (Accessed on 18/2/2011) www. bignerds. com/tag/1-checkpoint-systems life-cycle-sdlc/22/ (Accessed on 18/2/2011) www. managementparadise. com †º †º Marketing Management (Accessed on 18/2/2011) www. moneycontrol. com †º Markets †º Food Processing(Accessed on 18/2/2011) www. nestle. in/PresenceAcrossIndia. aspx? nesindia=2(Accessed on 20/2/2011) www. nestle. in/Nestle_in_community. aspx(Accessed on 4/2/2011) www. nestle. in/press_01. pdf(Accessed on 22/2/2011) www. nestle. com †º Home †º Media †º News Features(Accessed on 23/2/2011) www. careers. nestle. com †º Life at Nestle (Accessed on 23/2/2011) www. nestle. com/ /Nestle-to-invest-in-RD-Centre-in-India. sp(Accessed on 24/2/2011) www. citeman. com/816-value-chain-in-sizing-up-competitive-advantage/(Accessed on 3/3/2011) www. projectsmart. co. uk/pest-analysis. html(Accessed on 4/3/2011) www. netmba. com/strategy/value-chain/(Accessed on 5/3/2011) Hussey, D. (1998) fourth edition, Strategic Management from theory to implementation, Pergamon press, Great Britain. Morden, T. (2007), THIRD EDITION, Principles of Strategic Management, Ashgate Publishing Limited, England. Capon, C. (2009), Third edition, understanding the business environment, Financial Times Prentice Hall. Lynch, R. (2003), Third edition, Strategic Management, Pearson Education Limited, England.