Marketing to Children Essay

Advertisers spend 100s of billions of dollars a year worldwide[1] encouraging, persuading and manipulating people into a consumer lifestyle that has devastating consequences for the environment through its extravagance and wastefulness. Advertising exploits individual insecurities, creates false needs and offers counterfeit solutions. It fosters dissatisfaction that leads to consumption. Children are particularly vulnerable to this sort of manipulation. Young children are increasingly the target of advertising and marketing because of the amount of money they spend themselves, the influence they have on their parents spending (the nag factor) and because of the money they will spend when they grow up.[2] Whilst this child-targetted marketing used to concentrate on sweets and toys, it now includes clothes, shoes, a range of fast foods, sports equipment, computer products and toiletries as well as adult products such as cars and credit cards. In Australia, children under 18 have an ave rage $31.60 to spend each week and they influence more than 70 per cent of their parents’ clothes and fast food purchases.[3] Advertisers attending a conference on Marketing to Kids and Youth were told that children and teenagers between the ages of 10 and 17 spent $3.3 billion every year.[4] In the US there are over 57 million school age children and teenagers who spend about $100 billion each year of their own and their family’s money on  sweets, food, drinks, video and electronic products, toys, games, movies, sports, clothes and shoes.[5] Additionally children 12 and under spend more than $11 billion of their own money and influence family spending decisions worth another $165 billion on food, household items like furniture, electrical appliances and computers, vacations, the family car and other spending.[6] For example, one study estimated that children influenced $9 billion worth of car sales in 1994. One car dealer explains: â€Å"Sometimes, the child literally is our customer. I have watched the child pick out the car.†[7] This means that car manufacturers cannot afford to ignore the children in their marketing. Companies such as Nissan sponsor the American Youth Soccer Organisation and a travelling geography exhibit in order to get exposure for their brand name and logo in child-friendly settings. Chrysler distributes 100s of thousands of glossy cardboard pop-up promotional books by direct mail that will appeal to children who love pop-up books. And Chevrolet has used advertisements featuring children. Some car dealers have added children’s play areas and arcade games to their facilities.[8] US advertisers are now beginning to recognise the potential of the international children’s market. James McNeal in his book Kids as Customers estimates that there are about three quarters of a billion children in other industrialised countries: â€Å"Letting one’s marketing imagination run wild for a moment, if these children spend only half of what U.S. children spend, their market potential would be equal to around $86.5 billion.†[9] Brandweek magazine, also enthusing about â€Å"the marketing opportunity that kids around the world represent† pointed out that even in China where children don’t get much income and save most of it, their total spending amounts to $2.6 billion per year, â€Å"second only to the US†.[10] Brandweek cited a survey that showed McDonald’s was the favourite fast food all over the world and Coke the favourite drink. It argued: if it is possible to create global preferences with food products–where obstacles like differences in local cuisine and culture exist–transcending cultural boundaries with toys, clothing and entertainment products should be considerably easier.[11] Average Income and Spending for Children aged 7-12 yrs Regular Income Annual Income# Savings Total Spending $US/month/child $US/year/child  $US/year Germany 32.30 569.40 46% 0.9 billion UK 31.50 506.20 26% 1.7 billion US 29.10 493.10 21% 8.9 billion France 22.50 377.90 30% 2.2 billion Japan* 10.70 407.90 62% 1.0 billion China* 9.00 182.00 60% 2.6 billion * urban areas only # including special income Source: Laurie Klein, `More than play dough’, Brandweek, Vol. 38 (24 November 1997) McNeal argues that â€Å"in many nations the competition for the children’s market is not as aggressive† as in the US: â€Å"It has been said that in the United States when you get a competitor down you kick him; in Asia you help him up.† He suggests that US firms using US-style competition will therefore have an advantage: it appears that fairly standardized multinational marketing strategies to children around the globe are viable. And they are advisable for those American marketers who are wanting to avoid some of the intense competition domestically and are thinking of seeking market and profit growth across the seas.[12]] The Development of a Consumer Children represent three different markets. In addition to the direct money that children spend and the money they influence, children also represent a third major market and perhaps the most significant and that is the future market.[13] Advertisers recognise that brand loyalties and consumer habits formed when children are young and vulnerable will be carried through to adulthood. Retailers and manufacturers have two sources of new customers, those who they can persuade to change from their competitors and those who have not yet entered the market. Those who switch are less likely to be loyal than those who are nurtured from childhood.[14] According to the CEO of Prism Communications, â€Å"they aren’t children so much as what I like to call `evolving consumers’.†[15] McNeal outlines the stages in the evolution of a child consumer. From age 1: Accompanying Parents and Observing. Children are taken with their parents to supermarkets and other stores where all sorts of goodies are displayed. By the time a child can sit erect, he or she is placed in his or her culturally defined observation post high atop a  shopping cart. From this vantage point the child stays safety in proximity to parents but can see for the first time the wonderland of marketing.[16] From age 2: Accompanying Parents and Requesting. Children begin to ask for things that they see and make connections between television advertising and store contents. They pay more attention to those ads and the list of things they want increases. At the same time, the youngster is learning how to get parents to respond to his or her wishes and wants. This may take the form of a grunt, whine, scream, or gesture–indeed some tears may be necessary–but eventually almost all children are able on a regular basis to persuade Mom or Dad to buy something for them.[17] From age 3: Accompanying Parents and Selecting with Permission. Children are able to come down from the shopping trolley and make their own choices. They are able to recognise brands and locate goods in the store.[18] At this point the child has completed many connections, from advertisements to wants, to stores, to displays, to packages, to retrieval of want-satisfying products. For many parents this is a pleasing experience. Ditto for the marketers, for it signals the beginning of the child’s understanding of the want-satisfaction process in a market-driven society.[19] From age 4: Accompanying Parents and Making Independent Purchases. The final step in their development as a consumer is learning to pay for their purchases at the check-out counter. From age 5: Going to the Store Alone and Making Independent Purchases. According to Direct Marketing magazine, by the age of eight children make most of their own buying decisions.[20] Modern children can often recognise brands and status items by the age of 3 or 4, before they can even read. One study found that 52 percent of 3 year olds and 73% of 4 year olds â€Å"often or almost always† asked their parents for specific brands.[21] Advertisers recognise that brand loyalties and consumer habits formed when children are young and vulnerable will be carried through to adulthood. Kids `R’ Us president, Mike Searles, says â€Å"If you own this child at an early age†¦ you can own this child for years to come.†[22] Forms of Marketing Children’s advertising covers all types of media outlets from newspapers to television stations. By the time most US children start school they will have spent 5000 hours watching television. They will spend more time watching television than they spend in class for their entire schooling.[23]  Similarly in Australia, where in one in four homes children have their own television sets, children spend an average of a quarter of their spare time in front of the television.[24] A version of the infomercial aimed at children is the television show whose main characters are modelled after toys. By 1988 64% of television toy advertisements were for toys related to children’s television programmes. Often cartoon characters would be launched as movies, be followed up by television series and then be merchandised on hundreds of products from t-shirts to toys.[25] The head of Disney explained to Advertising Age in 1989 how the Disney Corporation’s activities all reinforced each other: â€Å"The Disney Stores promote the consumer products which promote the [theme] parks which promote the television shows. The television shows promote the company.†[26] Advertisers not only feature cartoon or other characters from children’s television programmes to gain their endorsement for their products (known as host selling) but they sometimes even place those advertisements in the breaks of the television programmes about those characters, thus blurring the distinction between programming and advertising and taking advantage of the affection children feel for those characters.[27] Television advertising makes up about 70% of the total amount spent on advertising to children in the US but total advertising expenditure makes up only about 15% of the total amount of money spent on marketing to children. In fact much marketing to children now consists of sales promotions such as direct coupons, free gifts and samples, contests and sweepstakes, and public relations such as using celebrities and licensed characters which visit shopping centres and schools. New technologies have also provided new opportunities such as the Internet and telephone services that enable â€Å"new, personalized promotions† aimed at children.[28] Marketing in schools is also a rapidly growing arena.[29] Kids clubs, organised by retailers, producers and media outlets, have proliferated in recent times. They offer an opportunity to develop a more personal relationship with each child, get information about the children for marketing purposes that can be used for mailing lists and data bases, and to promote products to children of particular age groups and geographical locations.[30] These additional forms of marketing have supplemented rather than replaced advertising as the importance of the children’s market has grown. Their aim however is the same as advertising,  to create brand loyalties and customers amongst children. Also, those wanting to sell goods recognise that some older children become somewhat cynical of advertisements and therefore publicity in children’s newspapers and magazines as well as other marketing strategies are alternative ways of reaching these children.[31] Advertising on the Internet A new arena for advertising is the internet. It is estimated that about four million children are using the internet world-wide and this figure is bound to increase dramatically over the next few years.[32] According to the director of Saatchi & Saatchi Interactive, â€Å"This is a medium for advertisers that is unprecedented†¦ there’s probably no other product or service that we can think of that is like it in terms of capturing kids’ interest.†[33] In their advertising material Saatchi and Saatchi explain their Kid Connection service: We at KID CONNECTION are committed to understanding kids: their motivations, their feelings, and their influences. In keeping with our mission to connect our clients to the kid market with programs that match our clients’ business objectives with the needs, drives and desires of kids†¦Interactive technology is at the forefront of kid culture, allowing us to enter into contemporary kid life and communicate with the m in an environment they call their own.[34] Children as young as four are being targeted by advertisers on the internet and often the interaction with the children is unmediated by parents or teachers.[35] These advertisers elicit personal information from the children by getting them to fill out surveys before they can play and offering prizes such as T-shirts for filling in â€Å"lengthy profiles that ask for purchasing behavior, preferences and information on other family members.†[36] Advertisers then use this information to â€Å"craft individualised messages and ads† targeted at each child. The ads are integrated with the other content of the internet site which is designed to keep the children engrossed in play for hours at a time. There are even product â€Å"spokescharacters† to interact with the children and develop relationships with them so that long lasting brand loyalties can be developed.[37] Michael Brody, spokesperson for the American Academy of Child and Adolescent Psychiatry, told a US Federal Trade Commission workshop on privacy that preadolescent children do not understand what personal information is. What is more, he pointed out, they look up to  fictional characters and tend to do what they ask of them.[38] The Centre for Media Education (CME) studied 38 children’s sites â€Å"commonly found on lists of popular places for children† on the internet. It found that 90% of them collected personal information from children and forty percent used incentives such as free gifts and competitions to encourage children to give that information. One in four subsequently send children an email after they visit the site and 40 percent send `cookies’ to those visiting the site to get unsolicited information from them.[39] Concerns There are questions about the ability of children so young to understand advertising and its intent and not be deceived and manipulated by it. Experts say that children don’t understand persuasive intent until they are eight or nine years old and that it is unethical to advertise to them before then.[40] According to Karpatkin and Holmes from the Consumers Union, â€Å"Young children, in particular, have difficulty in distinguishing between advertising and reality in ads, and ads can distort their view of the world.†[41] Additionally children are unable to evaluate advertising claims. At the same time, Richard Mizerski, an Australian professor of marketing, observes; â€Å"their cognitive structures are beginning to form and they are most sensitive to external influences.†[42] This is especially a problem when advertisements appear on school walls and posters and book covers and gain legitimacy from the supposed endorsement of the school so that children think th ey must be true.[43] One study by Roy Fox, Associate Professor of English Education at the University of Missouri-Columbia, found that children watching athletes in television commercials thought that the athletes paid to be in the advertisements to promote themselves rather than the products. They believed children in advertisements were real rather than paid actors and they often confused advertisements with news items. Generally they did not understand the commercial intent and manipulation behind advertisements.[44] Older children pay less attention to advertisements and are more able to differentiate between the ads and TV programs[45] but they are also easy prey for advertisers. Around puberty, in their early teens, children are forming their own identities and they are â€Å"highly vulnerable to pressure to conform to group standards and mores.†[46] At this age they feel insecure and want to feel that they belong to their  peer group. Advertising manipulates them through their insecurities, seeking to define normality for them; influencing the way they â€Å"view and obtain appropriate models for the adult world;† and undermining â€Å"fundamental human values in the development of the identity of children.†[47] Advertisements actively encourage them to seek happiness and esteem through consumption. It is for these reasons that marketing to children should be carefully restricted. In particular advertisements aimed at children under the age of 9 years old, including on the internet and during children’s television programmes, should be banned. Such advertising subsidises the cost of these services at the cost of our children’s values, sense of well-being, health and integrity. Moreover the future of the planet is at stake if we allow advertisers and marketers to turn children into hyper consumers of the future.

Describe the Policies and Procedures of the Setting Essay

It is important that this policy is constantly being applied to ensure full safety of the pupils, this is why all staff MUST be familiar with this policy. Within this the school also has home school agreements for each year group which set out the Code of conduct/Golden Rules. Is a set of rules/guidelines for the pupils so they understand how they should behave and what is expected of them. It is important that the children are reminded of the code of conduct so that it becomes their routine and they fully understand it. It is essential that positive behaviour is always promoted, praised and used as children notice when adult’s behaviour is out of character, if positive and professional behaviour is continually used it is more likely that the pupils will also behave in that way. The golden rules are a focus around the school and are visibly displayed for all to see within the classrooms and the school hall. The children learn about these golden rules from the day they start at Springdale and it becomes a big part of Springdale life. Rewards and sanctions Although good behaviour is encouraged in schools, children will still behave inappropriate at times. Consequences for bad behaviour in my placement school can take many forms. †¢ Move from the sunshine to the black cloud. †¢ Miss time out from golden time, break or lunch play. †¢ Be sent to the head of year/deputy head †¢ Be sent to the head teacher and a meeting arranged with parents. Rewards for good behaviour can include the following. †¢ Full golden time awarded Raffle tickets gained/stickers †¢ Star of the day †¢ Extra time to choose activities †¢ Certificates in assembly Springdale Golden Award All staff can given certain rewards/sanctions however some may be given by a certain member of staff for example, if you do some good work in class then your teacher will put you forward for a Golden award which you get from the Headteacher in assembly. The child gets a certificate and a sticker infront of their peers. Dealing with conflict and inappropriate behaviour The schools policy for behaviour will give information on how you should manage more difficult behaviour as a teacher or TA. It is also important that pupils understand the behaviour policy of the school so that they have a clear idea of how bad behaviour will be dealt with if they choose to go against school rule or behave in an inappropriate manner. Anti-bullying My placement school has a separate anti-bullying policy but bullying is also built in to the behaviour policy for the whole school. It covers all forms of bullying including cyber bullying. Anti bullying is promoted for all pupils within the SEAL project, the golden rules and the home school agreements. Attendance My schools attendance policy sets out how the school manages issues around attendance. Attendance has to be monitored carefully to ensure there are no unauthorised absences or long spells of unexplained absences. Both children and parents have a responsibility to ensure they attend school and this policy will explain what will happen if the policy is not followed.

The American welfare program encourages abuse and Entitlement Research Paper

The American welfare program encourages abuse and Entitlement - Research Paper Example The welfare program in the U.S. encourages abuse and entitlement by altering the resilient attitude of vulnerable groups. â€Å"Members of vulnerable populations have often displayed remarkable resilience and ingenuity in addressing their own needs† (Jansson 5). In low income communities, informal support systems are usually in place. Neighbors and church members help each other. For some groups, demand for welfare services is even lower. â€Å"Foreigners have lower health expenditures than native-born Americans and contribute more to the economy, both in productivity and taxes, than the public service they may receive† (Viladrich 825). When welfare programs broadly target certain groups without considering particular needs for purposes of determining eligibility, the attitude of resilience can shift to dependence. â€Å"In a welfare state context, multiculturalism may not be beneficial for immigrants at all, because it may lead to dependence on welfare-state arrangeme nts and thereby to social and economic marginalization†. Dependence can lead to abuse. The American welfare program encourages abuse and entitlement in not addressing social barriers to employment. Welfare recipients commonly face â€Å"low or few job skills, low educational attainment, lack of jobs in the community, and problems with transportation as barriers to finding and sustaining employment† ... When social welfare acts as a buffer for low income families without being linked to empowerment, this encourages dependent attitudes that breed abuse. The welfare program in the U.S. encourages abuse and entitlement by altering the resilient attitude of vulnerable groups. â€Å"Members of vulnerable populations have often displayed remarkable resilience and ingenuity in addressing their own needs† (Jansson 5). In low income communities, informal support systems are usually in place. Neighbors and church members help each other. For some groups, demand for welfare services is even lower. â€Å"Foreigners have lower health expenditures than native-born Americans and contribute more to the economy, both in productivity and taxes, than the public service they may receive† (Viladrich 825). When welfare programs broadly target certain groups without considering particular needs for purposes of determining eligibility, the attitude of resilience can shift to dependence. †Å"In a welfare state context, multiculturalism may not be beneficial for immigrants at all, because it may lead to dependence on welfare-state arrangements and thereby to social and economic marginalization† (Koopmans 2). Dependence can lead to abuse. The American welfare program encourages abuse and entitlement in not addressing social barriers to employment. Welfare recipients commonly face â€Å"low or few job skills, low educational attainment, lack of jobs in the community, and problems with transportation as barriers to finding and sustaining employment† (Blalock, Tiller, and Monroe 134). Welfare is only one component of the poverty alleviation formula. These barriers have to be

The Theory of Ideology and Children's Drawings Assignment

The Theory of Ideology and Children's Drawings - Assignment Example Visual culture in the modern world has an immense capacity to influence children’s thinking (Duncum, 2001; Freedman, 2003; Kindler, 2003; Smith-Shank, 2002; Tavin, 2003; Wilson, 2003a). This is particularly true in terms of how they incorporate and integrate surrounding images and signs. Althussers formulation of interpellation has been essential to scholars of the post-structuralist era (Bateman, 2011), particularly for the investigation of image and meaning in visual culture studies. This investigative approach to children’s drawings in relation to art education illuminates the influence of children’s surroundings in modern life. The concept of interpellation was adapted to such uses by theorists of politics and media in the 1970s (Sturken & Cartwright, 2009). Below, I examine the ideas of French Marxist Louis Althusser, employing his concepts of interpellation and ideology to analyze how the drawings of young people are shaped by the visual culture around them. Such an exercise will demonstrate how visual culture shapes all of us. Children are products of their world, and the world in which they develop has a vested interest in ensuring that they conceive of their environment in certain ways. The power of the structures of visual culture needs to be clear and persistently justified by those in power. If the semiotics of visual culture functions as the elites desire them to function, children will see and render the world in ways others desire. However, one must bear in mind that a strictly structuralist view of Marxism, as well as a strictly structuralist reading of the theory of interpellation, fails to appreciate the role of human agency in shaping individual sensibilities. In short, while visual culture can be powerful, children’s drawings can rebel against received semiotics or the contrivances of the interpellative efforts of the state apparatus. As such, I

Boswell Agency; Structuring of an Advertising Agency Essay

Boswell Agency; Structuring of an Advertising Agency - Essay Example Boswell Agency being a renowned entity asserts that the Dallas’ office staffs could not complain about the salaries as the remuneration was remarkable. According to the organisation’s study, the abundance in remuneration emanated from the earnings accrued through the Blue Sky client (Kelley & Jugenheimer, 2009). The target media groups had an excess number of buyers and planners; hence, the company realized the need to expand its media portfolio in a bid to reduce competition while still revamping its authoritativeness and cost-effective. The company’s management realizes that the use teambuilding approaches within the office leads to the delivery of the intended information and coordination within the office; hence, its vision to ensure profound service delivery will be enhanced. Secondly, the retrenchment of the excess staff could lead to the reduction of the costs while still affecting the profit margins (Kelley & Jugenheimer, 2009). Evaluation and monitoring of the office’s departments evokes the vital need to improve the rate of transfers within the departments’ employees. Boswell Agency should embrace tactical account practices that would lead to the development of a critical team that will address the needs of different clientele groups despite their demographic, geographic, and other environmental differences as that will propel its acquisition of the target clientele population and subsequent profits (Kelley & Jugenheimer, 2009). The account structuring action plan approach will deliver an understanding to the management; hence, they will understand the types of costs incurred and the subsequent control approaches to pursue in order to achieve the set objectives. The agency opts to embrace a three-plan strategic approach that will deliver its objectives through the creation of positive and authoritative accounting practices that will suit different types of clients

Fuel Case Study Example | Topics and Well Written Essays - 500 words

Fuel - Case Study Example Hydrogen flows into the anode while oxygen flows into the cathode. The catalyst splits the oxygen into two negative atoms: the two opposite elements (hydrogen and oxygen) attract and pair and the end products of this chemical reaction are water, heat and electricity (Caitlyn 43) Amory Lovins opines that many of the objections against the use of hydrogen are either myths or can be overcome. He believes that hydrogen has a place in the modern world because those objections are based on ill-formed commentaries (Sadoway 56). Its advantages include; The proponents’ views are the most persuasive because there is a lot yet to be discovered about this fuel because it is relatively new. It is a clean energy initiative because the fact that it doesn’t produce harmful emissions makes it environmental friendly. These benefits of hydrogen economy will help us move towards a more sustainable energy economy (Amory 56). In the modern society, there is a place for hydrogen. The fact that this fuel is nontoxic makes it a rare source of energy because other hazardous sources can’t compete against it. Both it’s by products are environment friendly. Its energy is powerful enough to be very efficient compared to other sources and water is used in spaceships. Lastly, it is not a super clean and affordable fuel we expect it to be, but with time it will change because it is relatively new at the

Terrorism Essay Example | Topics and Well Written Essays - 1000 words - 3

Terrorism - Essay Example Those advocating for the leadership of the UN to fight terrorism cite the strained relations with long-standing allies that resulted from the invasion of Iraq without being sanctioned by the UN as a major setback to the nation. Following their perspective that terrorism is a global problem, they believe that international cooperation will achieve better results as it will pool together diplomatic, intelligence and financial resources. Instead, if the nation goes to war against terrorism on its terms and leadership, the necessary resources for domestic protection will be diverted overseas. Those supporting forceful and aggressive mean opine that when the US acts on its own, it will bypass the difficulties associated with seeking international cooperation, which often takes place while the nation’s vulnerability to terrorist attacks increases. Preemptive measures, they propose, are the best way to work without worrying about different political motivations or constraints present ed by potential international partners. This stems from their notion that there are conventions already in place by the UN against terrorism but they have largely been ineffective or unenforceable.This paper supports a diplomatic approach towards addressing the terrorist menace. It is imperative for the measures adopted by the US to reflect the nation’s democracy and ethics. It is true that 9/11 attacks sent a message of vulnerability to Americans, in their own country, that they had not experienced in over five decades.

Summary of I Am Because We Are pg 338-pg356 Essay

Summary of I Am Because We Are pg 338-pg356 - Essay Example Woodson claims that more than fifty years ago at his time, something was wrong with the path that the African American were being educated, and this provided an impetus for the Afrocentric approach to the education in America. In this article, Molefi examines the scope and nature of this approach by Woodson. He shows its necessity and further suggests how it can be developed and disseminated all through the levels of education (340). The two guide propositions that this article makes use of are the definitions of education and school. Education is defined as a fundamentally social phenomenon that purposes to socialize a learner. School is a reflexive of societies and develops from them. Afrocentricity is defined as a frame of reference that enables someone particularly a researcher to develop of phenomena in regards of the African person. Molefi emphasizes that the afrocentricity should not be mistaken to a black version of Eurocentricity. Eurocentricity is generally based on the notion of white supremacist that purposes to protect white privilege and the importance in economics, education and politics among others (347. The issue of Multiculturalism has also been featured illustrating that education must begin with a proposition that diverse people have contributed to the development of education. The American education does not include the African ethnic groups showing how the systems have victimized the teaching force (344). However, Afrocentricity gives the Americans an opportunity to examine the African person perspective in the society and globally. Afrocentricity is not anti-white like some people claim but is pro-human. The Afrocentric curriculum aim is not to divide America, but to make it flourish. 348. In the second article, Learning to talk the race, Cornel west talks about an event that happened in Los Angeles explaining why it is neither a race riot nor a rebellion associated with a

The appeal of TV police drama Essay Example for Free

The appeal of TV police drama Essay Discuss the appeal of TV police drama with particular reference to The Bill and In Deep The Bill, shown on ITV1 at around 8.00, and In Deep shown on BBC1 at around 9.00, and after the news, are both police dramas. Therefore, they both are targeted to police drama fans. However, there are differences between two. In The Bill, there are lots of different codes and conventions found in typical police dramas. For example, there is a police station, panda cars, uniformed and plain clothed police, who carry out everyday tasks, such as dealing with burglary, assault, and racial abuse. In In Deep, there are also lots of codes and conventions of police drama, but they are different to that found in The Bill. For example, the policemen are plain clothed undercover policemen, there is a secret operation, cover stories, involvement in drugs, and 24 hour surveillance on a potential bad guy, which gives the program more of a gangster police drama feel about it. In The Bill, the narrative structure is very different to that in In Deep. It has very quick scene changes, and lots of intertwining storylines, very like a soap opera, in that there are many storylines going on throughout the episode. This is probably the reason that it is put onto our screens at a primetime slot, and therefore appeals to audiences who prefer the soap genre. Because the episodes are on every week, the budget is lower, so thats why the mainly the same locations are used, and thats why it develops more of a soap formula, as they cannot do really big scenes. In Deep has the narrative structure of a film, rather than a soap. The storyline is focused around one main storyline, with lots of twists coincided with it. It also shows a lot more violence, and more brutal scenes, because it is a series, therefore has a higher budget to film and construct these scenes. The Bill and In Deep has lots of enigma codes. For example, in The Bill, whether a beaten up man will tell on the police man that beat him up, and is a suspect off work with somebody, or is she, likes she says, ill, and in In Deep, will the coppers covering as drug dealers killer the supplys wife. These enigma codes keep up the audience interest in watching to the end of the episode. There is also a fair representation of policemen in both. In The Bill, you get to see more of the policemens personal life, and the question on how much personal life should be brought into the work place. In In Deep, the question is whether them acting as criminals is any better then the actually criminals themselves. All these points keep the watcher interested, and keeps audiences coming back to watch other episodes.

Essay Dramatistic Analysis on Breaking Bad Essay Example for Free

Essay Dramatistic Analysis on Breaking Bad Essay Cady is going to encounter psychological struggle and unwritten social rules that teenage girls face today. Through the Marxist perspective, the movie will be analyzed in order to show how sometimes the pull to conform to hegemony is so important that we have no choice that letting us be dragged to respect the established hierarchy. Mean Girls is an excellent artifact, worthy of investigation in the way that it shows how we expect teenage girls to act, but also how difficult it is for them to refrain from acting that way. When using the Marxist perspective, we begin by identifying the subject positions, as models or anti-models. Mean Girls provides clear subject positions about the models – characters that viewers are encouraged to want to be like, and the anti-models – characters that viewers are encouraged to no want to be like. Thus, the models appear to be â€Å"The Plastics†, a group composed of the three teenage girls Regina George, Gretchen Wieners and Karen Smith. By analyzing â€Å"The Plastics†, it seems like teenage girls need to follow a specific pattern in order to be popular. That is to say, on a physical standpoint, teenage girls need to be thin, pretty, and wear tight and revealing clothes, while on a behavioral standpoint, they spend their time gossiping, partying, dating, and talking about boys, rather than focusing on their academic success. On top of the hierarchy is Regina George, and the two other â€Å"Plastics† are her subordinate. On the contrary, the anti-models, challenging the status quo and considered as abnormal or undesirable are represented by Janice and Damien. Both of them are belonging to the oppressed group, or the group that is considered as â€Å"inferior† and â€Å"subordinate† to the dominant group. Mean Girls depicts how easy it is for a dominant group (â€Å"The Plastics†) to impose its ideology on other groups. The interests of the empowered group are then promoting as being natural. Indeed, in Mean Girls, the dominant social group keeps the control over the other groups because nobody dares challenging the authority claimed by â€Å"The Plastic†. â€Å"The Plastics† keep their status quo by oppressing and manipulating the other subordinate groups. They dictate how things should be. The positive power of popularity combined with the negative disempowerment of being unpopular and rejected ultimately reinforces hegemony. That is to say, those who are popular are empowered even if popularity is just a facade for these teenage girls, and those who are not popular are disempowered. By focusing on Cady Heron, and observing how from an innocent teenage girl, she becomes a terrible â€Å"Plastic†, we can deduce that once accepted by the dominant group, people have trouble in seeing the flaws and drawbacks of the hegemony they are in. In order for them to be aware of it, they have to become a member of the subordinate group. Only the anti-models characters are able to see how wrong is the hierarchy they live in, and are willing to change it in order to create a more equal system. Mean Girls proposed both a preferred and an oppositional view on the hegemony. Indeed, from the beginning to the middle of the movie, Mean Girls brings a preferred reading with Cady altering her original beliefs, joining the dominant group and becoming a â€Å"Plastic†. Cady’s desire to respect conformity can be explained by a need to fit in and avoid ridicule. As a consequence, the viewers, siding with her, support the status quo. On the other hand, from the middle to the end of the movie, Mean Girls gives an oppositional reading by considering that â€Å"The Plastics† ought not to be empowered, in order to have a more equal system. Indeed, by the middle of the movie, Cady understands that her destructive behavior made her loose her two closest friends (Janice and Damien). She also realizes she needs to stop acting like a â€Å"Plastic† and to categorize people according to superficial traits, and that she should start considering people according to different characteristics (intelligence over beauty for example). As a consequence, Cady, desirous of putting things right, starts to think how she could readjust the hegemony around her. Thus, she considers destroying the hegemony reigning at school in order to challenge the status quo. At that time, the movie gives the viewers an oppositional reading rejecting the hegemony. In spite of the casualty and frivolity of the topic addressed (teenage girls movie), Mean Girls is still interesting to study because it gives us some interesting and engaging acumen into Marxist perspective and hegemony. Mean Girls shows us how hard it is to resist hegemony when everyone else is subjected to it. Mean Girls also makes viewers being more critical about how hegemony is reproduced in regular patterns of life, like the passage in high school for example.

Environmental Issues in Malaysia

Environmental Issues in Malaysia 1 INTRODUCTION There has been a very high level of concern on environmental issues worldwide nowadays. Ministry of foreign affairs statistic shows that over the years, the temperature has been rise because of carbon dioxide trapped and green house gases have affected the global climate. This change will affect the people live all over the world. This also includes access to water, health, food and the well being of the environment. Todays, many consumers started to realize that their purchasing behavior actually will cause a big impact to the environment. Therefore, companies should practice offering environmentally friendly products and service to people to prevent this world become worse. Therefore, companies should practice offering environmentally friendly products and service to people to prevent this world become worse. Although, Malaysia has undergone an excellent development followed governmental efforts to attract foreign investor to come and invest for a green product development in Malaysia, the practices of environmental responsible behavior are still low among Malaysian consumers. An example of the lack of environmental responsible behavior is shown in an article in Bernama whereby garbage thrown by one of the state in Malaysia residents is the main cause of river pollution in the state. According to a survey which was conducted on line by global market insight and information group, on the aspect of eco-friendliness of habits and behaviors only 8% of Malaysian respondents responded that they have changed their behavior in a greatest deal to benefit the environment. In addition 83% respondents reported that their views on a companys and their Colleges friendliness to the environment would influence their purchases of products and services. Studying the determinants of generation-Y consumers green purchase behavior will be definitely benefit green marketers. Generation-Y (also known as a millennial) is defined as A label attributed to people born during the 1980s and early 1990s. Members of Generation Y are often referred to as echo boomers because they are the children of parents born during the baby boom (baby boomers). Because children born during this time period have had constant access to technology (computers, cell phones) in their youth, they have required many employers to update their hiring strategy in order to incorporate updated forms of technology. In a simple word, generation-Y grew up with a technology and relies on those things to perform their job and their task. In addition, when going through a literature review in Malaysian context, there are still a gap existed between environmental knowledge, intention and behavior towards green product. [Said et al. (2005)]. Even though people that have vast knowledge about green products are not necessarily would buy a green product. Therefore, factors those determine and affect Generation-Y to purchase a green product would be worth to find out. 1.1 BACKGROUND OF THE RESEARCH Environment is defined as what surrounds a thing or an item or in other words it means the surrounding. It could be a physical element which is physical environment, that includes the built environment, natural environment such as air, water, land, atmosphere and etc or it could be human environment where people surrounding the item or thing which also known as the social environment. Today environment is getting worst and worst. Many environmental issues arise. Environmental concerns have been growing in recent years. One of the examples of environmental issue is global warming. Global warming and climate change refer to an increase in average global temperatures. Natural events and human activities such as burning garbage and waste are believed to be contributing to an increase in average global temperatures. This is caused primarily by increases in greenhouse gases such as Carbon Dioxide. The greenhouse effect keeps the earth warm when functioning normally. For the first time in h istory, human activities are altering the climate of our entire planet. According to (Jack, 2010), in less than 2 centuries, humans have increased the total amount of carbon dioxide in the atmosphere by 25% from the burning of fossil fuels and the destruction of forests. In addition to the natural fluxes of carbon through the Earth system, human activities, particularly fossil fuel burning and deforestation, are also releasing carbon dioxide into the atmosphere (The Carbon Cycle; the Human Role, Earth Observatory, NASA). Green product is define as a product that produce limited carbon footprints; they may require fewer resources to produce, consume less energy or emit fewer hazardous emissions.  Green product is also a product that is non toxic, water-efficient, and also recyclable and biodegradable. There are many green products that have been produce for people in the market. For example, a household cleaner. Nowadays its nearly impossible to go shopping without finding a plethora of products that claim to be environmentally and consumer friendly. Oddly enough, many cheap and eco-friendly substances, such as vinegar, have been used for years as home cleaners. Whether you buy a green cleaning product at a store or use something on hand in your pantry, you can reap the benefits of choosing products that are gentler on you and the environment. Phosphate-free dishwasher and laundry detergents are also consider a green product because they do not discharge environment-damaging phosphates into wat erways. Other examples of green cleaning products are those labeled certified biodegradable; these have passed several stringent tests relating to biodegradability and environmental impact conducted by an independent certifying agency. According to Consumer Reports, the certified biodegradable label is more meaningful than a general biodegradable label. Glass and metal cleaners, kitchen and bathroom cleaners, and laundry detergents are products that might carry this label. The rationale for going green is twofold. Clearly, the positive effects on the environment are a key driver for purchasing green product.  Green product provides myriad environmental benefits. They can replace toxic materials that may be harmful to people or animals. Also, some products save energy and water, while others limit solid waste and manufacturing releases. Green products create a healthier environment for people through reduced exposure to cleaners, solvents, paints and other hazardous substances. Green product also can reduce allergies. Many families find that their children are suffering from allergies, even though their family history does not necessary say that there are no allergies. In some situations, chemicals found within cleaning products contain allergens. Bleaches, toxic cleaning sprays and other chemicals used to clean the home commonly contain a variety of ingredients specifically able to cause or trigger allergies in people.   Generation Y are the cool generation, they embrace brand and live in the new world of digitize communication. Thus that might be interesting to find their perception and their level of awareness towards environmental issues that the world is facing nowadays. Gen Y has grown up in a very structure, busy and over planned world. Also, Gen Y is made up of confident, optimistic young people who feel valued and wanted. In a article of science daily, Gen-Y is a people that will go all the way when it comes to saving the environment as long as it benefit to world economic and environment. They are maturing into a pragmatic generation that wants to do the right thing for the environment but also has real economic concerns 1.2 PROBLEM STATEMENT Consumers or practically customers are the sellers and buyers that boost the countrys economy. Therefore, many firms are actually putting many efforts in order to attract more customers because these customers create businesses opportunities and generate profits to them. As the world nowadays facing so many problems regarding to an environmental issue, the consumers and their attitudes or behaviors to purchase a green product are the important factors to be considered. Consumers nowadays have more choices due to the effects of globalization. They will prefer the function of the product rather than the brand or whatsoever to ensure a healthier future. To determine the current level of Gen-y consumers preference towards the green products. To determine what are the determinants or factors of Gen-y consumer preferences towards the green product. To determine the consequences or effects of Gen-y consumer preferences towards the green product. To determine consumer level of awareness of Gen-y consumer towards green product. 1.3 RESEARCH OBJECTIVE Awareness towards environmental issue that the world nowadays facing play a major role encourage people to purchase a green product. Thus, this study is attempts to relate on the various variables that influence consumer especially generation-Y to purchase a green product. The objectives are as the following: To study the factors affecting the consumer especially Gen-Y to purchase green product. Gen-y is a new generation and It is crucial to understand as they are more advance and modernize. Thus, several researches have been conducted in order to understand consumers in a way that how they behave, and what are the factors that cause them to behave or react to the responses of the products. Leading factors such as price and quality are always the top concerns to the consumers. Product attributes will moderate the effects of price on quality judgments. Partial of the consumers may focus on buying low prices goods and neglect the quality of the products. This group of consumers takes the price as a measure of sacrifice. For instance, consumers take the price served as the benchmark for comparing utility gains from the quality of the product. One the other hand, some portion of the consumers will be willing to pay a premium price for the quality and function of the products, as they are very sensitive to the signals of the quality of one product. Thus, it is hope that this stud y will contribute further to the understanding of factors of price and quality that may lead to the consumers prefer for a green product To understand the awareness level of people about Go Green campaign. Nowadays, there are many environmental campaign have been organized by a government and private sector. This campaign is aim to encourage people to more concern about the environment. Thus, it is hope that this study will explore how people react to a environmental campaign and what is their level of awareness about the awareness campaign. To examine the benefit for people involvement in Go Green program. We might be asking, how we will benefit from getting involved in this environmental campaign. Well, recently there has been an increase in events directly related to the availability of natural resources. For example energy shortages that resulted to load shedding, change in weather patterns and water shortages. As a result, civil society is recognizing the need to manage our natural resources more effectively and responsibly. In doing so, we can ensure positive effects on our health, quality of life and even the cost of living. Thus, this study will help people to getting known more about what they will gain if they participate in the environmental campaign. To discover what consumer perception towards green product. In curiosity to identify what are the main components or criteria that consumer especially gen-Y are looking forward in order to purchase a green product. It is true that each and every one of us are special and unique in the way we are, thus, every consumer has their very own perception in purchasing a green product. Different people from different backgrounds may have different perceptions on these products. In addition to that, different demographic groups may have different perceptions to this kind of product as well. Thus, this study will help to identify whether the consumer especially gen-y prefer to buy a green product or not to safe a mother of earth. 1.4 SIGNIFICANCE OF STUDY This study is crucial as there are a lot of green products have been selling nowadays. Obviously, when we talk about green product, the price for that particular item might be so expensive. The study on factors affecting consumer especially Gen-Y buying a green product may allow us to know in depth why are previous efforts taken does not produce as it is thought it would be. Based on the study conducted, motivations towards the environment, knowledge on green product, social norm, awareness and self-image have an impact on the consumer especially Gen-Y buying a green product. Government may need to enhance its program in educating people green product. New and more interesting Go Green program and method is a definite necessity in motivating people to increase their interest/awareness on a green product and indirectly motivates them to purchase it. 1.5 SCOPE OF STUDY The research focus on students in Multimedia University (MMU) Melaka campus and teenagers from outside the campus which comes from various demographic backgrounds such as the faculty, ethnicity and nationality. The focused respondents are a great resemblance on the exact population in Malaysia. 1.6 ORGANIZATIONAL OF RESEARCH 1.6.1 Chapter 1: Introduction Regarding this chapter, it introduce the background of this research such as why do people as a consumer buy a green product. Thus, this will create a strong preference among the gen-y consumers locally and abroad to consume and purchase green products. These sections will explain in details in the of consumers preferences from the Malaysian perspective and as well from the global view for green products. This chapter also recognized the problem statement and the research objectives for this research. Finally, the justification of the research will help to justify the benefits and those who will gain in this research. Chapter 2 : Literature Review A thorough study will be conducted on the dependent variable and independent variables. The main purpose for this chapter is to weigh the pros and cons of the topic and to discuss in details on the ideas and knowledge concerned. In this chapter, every definition of the dependent variable and independent variables will be cited from the journals in order to strengthen every point mentioned. Several of arguments and various points of views from different authors in order to provide a stronger formation of each point can be founded in this chapter. In addition to that, this chapter explains the relationships on several independent variables relate to the dependent variables. 1.6.2 Chapter 3 : Research Methodology Research methodology is usually conducted after the thorough study of literature review. In this chapter, theoretical framework will be form to illustrate the relationships between the dependent variable and the independent variables. Hypotheses or a proposed explanation which were made on the basis of limited evidences will explain the relationships between two or more variables. All the hypotheses stated will be tested together with empirical data. This chapter also includes the description of the sampling data, data collections and as well as the development of the questionnaire for this research. Chapter 4 : Data Analysis After questionnaires are collected from all the respondents, then few tests will be conducted to test on the validity and reliability of the results. The responds of the questionnaires from the respondents are represented by a set of numbers that symbolize their own significant meanings. Whereas the tests that will be carry out are to analyze the responses from the respondents so that it will derive to a stronger conclusion at the end of this research. Chapter 5 : Conclusion This chapter will provide the final outcome of this research. Thus, the final results will be explained and we will be able to identify how the exact hypotheses that formed earlier are hold. Chapter 2 Literature Review 2.1 Environmental quality in Malaysia According to report from Department of Environment Malaysia, 2006, Malaysia experienced a short period of slight to moderate haze due to trans-boundary pollution from neighboring countries. The air quality status in different states differed according to the geographical locations, the industrial and commercial activities, populated areas and the traffic conditions. During that period, Klang Valley area in Malaysia was more prone to air pollution than any other areas and the air quality was only good 23% of the time, moderate 70% of the time and the remaining 7% at an unhealthy level. As a developing country, Malaysia faced great challenge in ensuring a balance between development and environmental sustainability. Urban air and river quality, deforestation, household waste and hazardous waste are some of the serious and worrying environmental problems faced by the country According to The Ninth Malaysia Plan (2006-2010) report, Malaysian government allocated RM510 million for cleaning, preserving and beautifying rivers; RM530 million for coastal management; RM200 million for reforestation; and another RM70 million for the management of wildfire and protected areas to ensure environmental sustainability and resource management. In a global environment article stated that, Solid waste is one of the three major environmental problems in Malaysia. It plays a significant role in the ability of Nature to sustain life within its capacity. Currently, over 23,000 tonnes of waste is produced each day in Malaysia. However, this amount is expected to rise to 30,000 tonnes by the year 2020. The amount of waste generated continues to increase due to the increasing population and development, and only less than 5% of the waste is being recycled.   Rivers represent the lease of life which pulses through the earth. It is a finite and only source of water. In Malaysia, there are almost 1800 rivers. Sadly, more than half of these rivers have been polluted and destroyed. Improper solid waste management contributes greatly to river pollution. Improper solid waste management also contributes to climate change decomposing waste produces methane and production of new products to meet demand emits greenhouse gases and utilizes natural resources. Therefore, a shift towards more sustainable consumption patterns is required. 2.1.1 Concern of environment There are many reasons and factors that affect consumer especially Gen-Y to buy a green product. According to  Mostafa (2007), green purchase behavior or environmental friendly buying behavior is the consumption of products that are beneficial to the environment, recyclable or conservable, Sensitive and responsive to ecological concerns. Concern for the environment is perceived to be important in encouraging consumer to participate in green program and also buying a green product. Research finding suggest that, moral concerns determine several curtailment behaviors (Goldstein et al., 2008; Hage et al., 2009). However, studies on the influence of moral concerns on consumer high involvement buying decisions with environmental implications are rare (Thà ¸gersen, 2005). This is a problem since overlooking an influential determinant might hinder or delay successful diffusion of environmentally friendlier products and innovations. Consumer identify environmental protection as a pri ority for governmental policies and this interest has led to an increase in ethical production-for both consumer and non-consumer products (  Finisterra do Paà §o  et al., 2009). Sensitivity to environmental issues shifts consumer behavior towards supporting the growth and diffusion of green marketing and ecologically-conscious consumer behavior including: consumer preference for greener firms, increase in demand for greener products. (Alsmadi, 2008; Finisterra do Pacao et al.,2009) found that greater awareness of environmental problems, increased media coverage, impact of major industrial disasters on public opinion, and the rise of pressure group activities are among the factors driving environmental concerns. 2.2 Green marketing Grant, John.(2008)define the green as a brand that that offers a significant eco-advantage over the incumbents and which hence appeals to those who are willing to making green a high priority. Soonthonsmai (2008) defined a green marketing as the activities that have been taken by firms that are really concern about the environment or green problems by delivering the environmentally sound goods or services to create consumers and societys satisfaction. Other definitions of green marketing as proposed by marketing scholars include social marketing, ecological marketing or environmental marketing. Harrison (2008) proposed green marketing strategy by firms through positioning the environmental benefits of green products to consumers mindset to influence their purchasing decision. Peatitie (2007) and Welford (2000) defined green marketing as the management process responsible for identifying and satisfying the requirements of customers and society in a profitable and sustainable way. In r eality, companies that pursue green marketing encounter numerous challenges mainly from the variability of demand, un-favorable consumer perception and high cost (Gurau and Ranchhod, 2008). The most key concern lies in an understanding of green consumers and their characteristics amd will help firm to enable and to develop a new target and segmentation strategies (DSouza et al., 2008). Dwyer (2009) defined green as the products to be designed, commercialized, and used which are capable of reducing sources of pollution and minimizing risks to human health and the environment. On the other hand, there are product sector specià ¯Ã‚ ¬Ã‚ c examples of research on green buying process, such as food and household products (Vantomme et al., 2005) and clothes (Shaw et al., 2006) 2.2.1 Consumer preference on green product The dependent variable in this study is the factor that affecting consumer preferences for green products. Everyone in this Earth, play a major role as a consumer. Consumers are the main factors that boost a countrys economy. Each and every consumer has their very own perspective and preferences towards what they consume. Consumer from different demographic factors such as background and society may influence their behavior in making decisions while to purchase products. Thus, it is undeniable that consumers preferences and their perspective towards goods and services are hard to predict. DSouza  et al.  (2006a)  found out in their research that consumers perception of green products did not influence by criteria such as packaging, label and ingredient of a product. The important finding from  DSouza  et al.  (2006b)  was that green consumers would rely more on their personal experience in using the product rather than evaluate a green product base on marketers provided information. Interestingly, this finding however contradicts to DSouza, Taghian and Lambs finding they found that consumers are getting environmental information from labels before deciding to purchase a green product. It is mean that, label are important to capture consumer impression to buy a green product. The importance of consumers has lead to many researches to be conducted in order to study on their behavior and attitudes towards what they perceived on the products. Barr and Gilg (2006) was found that green purchasing behavior was the least popular activity alongside activities such as recycling and habitual household activities. However, not surprisingly, green consumers do consider environmental factors when purchasing products, but engaged more frequently in activities such as switching off lights and recycling paper (daily activities). Wheale and Hinton (2007) suggested that amongst the population of green consumers there is a hierarchy of importance of ethical drivers in the purchase decision-making process. The environment was rated as the most important ethical driver during purchasing decisions. The finding from  DSouza  et al.  (2006a)  was if product is lower in quality, consumers would not have intention to buy green products even though they were always reading labels. Furthermore, if product is more expensive, consumers might have intention to buy green products. Therefore,  DSouza  et al.  (2006b)  concluded from their study that consumers were not compromised to lower product quality. However,  Rashid (2009)  in his study stated that eco label is an important factor that would enable consumers to make the right purchase choice if faced with a situation that required their consideration of the environmental impact on a product that they wish to purchase. 2.3 Knowledge and attitude towards environment and green product Knowledge and attitude towards environment are very important to influcence consumer especially Gen-Y To buy a green product. There is a general belief among the researchers and environmental activists that through purchasing environmentally friendly products or green products, products with recyclable packaging or properly disposing of non-biodegradable garbage, consumers can contribute significantly to improve the quality of the environment (Abdul-Muhmim, 2007). The quality of the environment depends critically on the level of knowledge, attitudes, values and practices of consumers (Mansaray and Abijoye, 2005). Attitudes are the most consistent explanatory factor in predicting consumers willingness to pay for green products (Chyong et al., 2006). This means that price is not the main factor in preventing consumers from purchasing green products if they are pro-environment. Researcher also found that Influencing consumer behaviour is a complex and difficult task requiring knowledge of its determinants. The most convincing support of the growing influence of the ecologically-friendly consumer is the increase in the number of individuals that are willing to pay more for environmentally friendly products (Bang et al., 2005). 2.4 Social norm and value perception influence consumer to buy green product. Studies have also investigated the effect social influence has affect consumer especially Gen-Y purchase green product.The interest in green initiatives is not expected to emanate only from external impositions and inducements but also from the internal sense of responsibility of a firm towards the society in which it exists. For green issues, such sensitivity is intensified by increasing environmental problems such as global warming and pollution. Such problems may also raise awareness and interest of a firm to behave in a more socially responsible manner and reflect an image of due diligence and commitment to sustainability. Green purchasing is primarily motivated by a certain degree of consumer ecological consciousness. Frey and Stutzer (2006) identify a number reasons behind environmental motivation: intrinsic motivations, altruism, internalized norms and social norms. Social norms lead individuals to take into consideration the opinions of the other members of society when choosing a green product over another: if they think that their acquaintances approve of green product purchase and disapprove of standard product purchase, there are encouraged to buy green products. (Ewing, 2005) stated that social norms are an important motivator of ecologically responsible behaviour. The strength of the normative influence of the consumers family and social groups on purchasing decisions depends on the characteristics of the product (e.g. luxury rather than a necessity). Value perception is the conception one has of oneself. Study in marketing influence on consumer purchase decision on green product, value perception was influencing green behaviours. This agrees to Lee(2008) finding value perception as the third predictor of her study. Apart from behavioral aspects, numerous studies have also looked at the relationship between demographic and socioeconomic variables and purchase green product involvement. Kinnear, T. and Taylor, J. (1973) stated that there has been no signià ¯Ã‚ ¬Ã‚ cant link found between demographic segmentation and green purchase. This could be due to the notion that different groups of people relate to different parts of the environmental agenda Peattie, K. (1995). There have been contradictory results of younger and older age groups concerns about environmental issues Peattie, K. (1995). There is, however, a belief that environmental concern is directly related to a consumers level of education Balderjahn, I. (1988). Based on four surveys, Hines et al. found no relationship with gender. Chapter 3 Research Methodology 3.1 Overview Methodology is a system of methods used in a particular research. Research methodology normally comes after defining the problems and completing the thorough of the literature review. Research methodology which has been implemented to collect, investigate and as well as interpreting data obtained for the testing of the hypothesis will be discussed. Theoretical framework will be formed in this chapter in order to illustrate the relationships in between the dependent variable and independent variables. Besides that, hypotheses were developed and will be discussed together with the explanations in conjunction with the dependent variable and the independent variables. On top of that, plans of the sampling method, data collection methods and as well as the development of the questionnaires are included in this chapter. Finally, the data analysis and the hypotheses testing will carry out to analyze the responses from the respondents so that it will derive to a stronger conclusion at the en d of this research. 3.2 Theoretical Framework Figure 3.1 below illustrates a theoretical framework that shows the relationships in between the dependent variable and the independent variables. Knowledge Country Factors affecting Gen-y consumer in Malaysia buying a green product Attitude Social Norm Value Perception 3.3 Explanation of Framework The preferences of consumers for green products are subjective. Consumer from different demographic factors such as background and society may influence their behavior in making decisions while to purchase products. Whether they have a greater of favor to green products or to ordinary products are just hard to predict. Thus, it is undeniable that consumers preferences and their perspective towards goods and services are hard to predict. The importances of consumers have lead to many researches to be conducted in order to study on their behavior and attitudes towards what they perceived on the products. The knowledge, which is one of the factors that might cause preferences for consumers to make purchases for green products. The first thing that came across consumers mind is the brands and firms that produce a green product. Thus, the brand image of the company has help by providing hints to the consumers in summarizing the information from that certain product. According to Grunert (1993), knowledge of the benefits of a green products use on the environment may have an impact on whether or not that product is purchased and used. Besides that, consumers also prefer to purchase a green product with a lower cost. The attitude is another most influential factor in consumer preferences for green products. Consumers normally are not really aware about our environment issue nowadays. It is because they get less information regarding to our environment situation. Awareness towards our enviro

Latrell Sprewell :: Art

Latrell Sprewell In the event that the National Basketball Association or any specific basketball organization is forced to make an important decision they must take into account that there are many factors at play. Prior to making the decision you must consider all the possible outcomes of each solution. Recently, a professional basketball player known as Latrell Sprewell assaulted his coach physically and orally. There has been a lot of controversy over what the NBA and Golden State Warriors should do with him. Many different things would be affected by the decision that they make. The three most notable are the financial issues, the players, and the public relations. Just like any business the most important thing that they must consider is money. The financial reasons play the most dominant role in this decision. Latrell should be considered an investment, on the team's part, and the team should stick by their investment. If they suspend him, the team would have no chance of getting to the playoffs and, without the possibility of winning the basketball championship, a dramatic decrease of income happens. No matter how devoted a fan is they do not want to spend hard-earned money on a losing team. A good portion of the income from a basketball team is derived from home games. Without many fans, fewer people buy tickets and therefore, fewer people go to the games. The team gets hit hard in the financial books. Another financial issue is that a lot of companies had hired Latrell to advertise certain products for them. Is Latrell the image the retailer is looking for? If he gets suspended and no one sees him play, why would they want to purchase a pair of shoes endorsed by him? If, ultimately, the league decides on fining him, how much should they fine him for? Another issue in the financial area is the possibility that many laypersons would say, "He'll get away with it, he's rich." Is that the kind of signal that you want sent out to the American public? Another large factor is how are the players of the NBA are going to react to the decision. What are they going to think? There is always the possibility of a strike. What would happen if Latrell got kicked out of the league, and his teammates and other NBA players decided that they did not like that decision and managed to go on strike.

Sustainable Design and Construction Essay -- Green Building, Sustainab

Our world faces energy concerns, global warming, climate change, water shortages, soaring housing costs, economic instability, and dwindling natural resources. In addition, an inordinate amount of construction waste is produced each day. It is essential to begin taking steps to prevent this pattern from continuing to take us down the road t environmental destruction. The engineers, architects and developers of today, more than ever, share an obligation to create new and innovative structures to turn this cycle around. Buildings and development have an enormous impact on our quality of life and the quality of our environment, both in construction and in operations. Buildings expend 40% of the world’s energy, 25% of its wood harvest and account for 16% of its water consumption 1, all resources we cannot afford to waste. Buildings of the future need to take the step beyond shelter and work places and perform as efficient, economic, environmentally sound spaces in which we can thrive and endure. It is our responsibility to utilize our knowledge and scientific research to move forward in the realm of design. Sustainable design, or â€Å"green building,† looks to create high performance buildings that improve our health as well as the health of the environment we live in. What is Green Building? According to the Environmental Protection Agency (EPA), â€Å"Green or sustainable building is the practice of creating healthier and more resource-efficient models of construction, renovation, operation, maintenance, and demolition.†2 Among the many constituents of sustainable design are improvements in water usage, waste reduction, use of recycled materials, reduced energy consumption, and an aesthetically pleasing environment for inhabitants... ...02.pdf. United States Green Building Council, Meet the USGBC, 2003, USGBC, 27 Feb. 2004, http://www.usgbc.org/AboutUs/mission_facts.asp. Ian Barbour, Ethics in an Age of Technology: The Gifford Lectures, Volume two (New York: HarperCollins, 1993) 34. The Engineering Handbook, Chapter Six: Ethics, Santa Clara University School of Engineering, 27 Feb. 2004, http://cseserv.engr.scu.edu/NQuinn/ENGR019_301Winter2004/EngrHandbook_Ethics.pdf. James Rachels, The Elements of Moral Philosophy, 4th ed. (San Francisco: McGraw Hill, 2003) 128. The Engineering Handbook, http://cseserv.engr.scu.edu/NQuinn/ENGR019_301Winter2004/EngrHandbook_Ethics.pdf. Barbour, 57. Thomas Shanks, S.J., Ph.D., How Did I Live Today?, 2003, Markkula Center for Applied Ethics, Santa Clara University, 27 February 2004, http://www.scu.edu/ethics/practicing/decision/today.html.

Euroland food Essay

In early January 2001, the senior-management committee of Euroland Foods was to meet to draw up the firm’s capital budget for the new year. Up for consideration were 11 major projects that totaled more than â‚ ¬316 million. Unfortunately, the board of directors had imposed a spending limit on capital projects of only â‚ ¬120 million; even so, investment at that rate would represent a major increase in the firm’s current asset base of â‚ ¬965 million. Thus, the challenge for the senior managers of Euroland Foods was to allocate funds among a range of compelling projects: new-product introduction, acquisition, market expansion, efficiency improvements, preventive maintenance, safety, and pollution control. The Company Euroland Foods, headquartered in Brussels, Belgium, was a multinational producer of high-quality ice cream, yogurt, bottled water, and fruit juices. Its products were sold throughout Scandinavia, Britain, Belgium, the Netherlands, Luxembourg, western Germany, and northern France. (See Exhibit 1 for a map of the company’s marketing region.) The company was founded in 1924 by Theo Verdin, a Belgian farmer, as an offshoot of his dairy business. Through keen attention to product development and shrewd marketing, the business grew steadily over the years. The company went public in 1979, and, by 1993, was listed for trading on the London, Frankfurt, and Brussels exchanges. In 2000, Euroland Foods had sales of almost â‚ ¬1.6 billion. Ice cream accounted for 60 percent of the company’s revenue; yogurt, which was introduced in 1982, contributed about 20 percent. The remaining 20 percent of sales was divided equally between bottled water and fruit juices. Euroland Foods’ flagship brand name was â€Å"Rolly,† which was represented by a fat dancing bear in farmer’s clothing. Ice cream, the company’s leading product, had a loyal base of customers who sought out its high-butterfat content, large chunks of chocolate, fruit, and nuts, and wide range of original flavors. This case was prepared by Casey Opitz and Robert F. Bruner and draws certain elements from an antecedent case by them. All names are fictitious. The financial support of the Batten Institute is gratefully acknowledged. The case was written as a basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. Copyright ï £ © 2001 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an e-mail to dardencases@virginia.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation. Euroland Foods’ sales had been static since 1998 (see Exhibit 2), which management attributed to low population growth in northern Europe and market saturation in some areas. Outside observers, however, faulted recent failures in new-product introductions. Most members of management wanted to expand the company’s market presence and introduce more new products to boost sales. These managers hoped that increased market presence and sales would improve the company’s market value. Euroland Foods’ stock was currently at 14 times earnings, just below book value. This price/earnings ratio was below the trading multiples of comparable companies, and it gave little value to the company’s brands. Resource Allocation The capital budget at Euroland Foods was prepared annually by a committee of senior managers, who then presented it for approval to the board of directors. The committee consisted of five managing directors, the prà ©sident directeur-gà ©nà ©ral (PDG), and the finance director. Typically, the PDG solicited investment proposals from the managing directors. The proposals included a brief project description, a financial analysis, and a discussion of strategic or other qualitative considerations. As a matter of policy, investment proposals at Euroland Foods were subject to two financial tests, payback and internal rate of return (IRR). The tests, or hurdles, had been established in 1999 by the management committee and varied according to the type of project: Minimum In January 2001, the estimated weighted-average cost of capital (WACC) for Euroland Foods was 10.6 percent. In describing the capital-budgeting process, the finance director, Trudi Lauf, said, We use the sliding scale of IRR tests as a way of recognizing differences in risk among the various types of projects. Where the company takes more risk, we should earn more return. The payback test signals that we are not prepared to wait for long to achieve that return. Ownership and the Sentiment of Creditors and Investors Euroland Foods’ 12-member board of directors included three members of the Verdin family, four members of management, and five outside directors who were prominent managers or public figures in northern Europe. Members of the Verdin family combined owned 20 percent of Euroland Foods’ shares outstanding, and company executives combined owned 10 percent of the shares. Venus Asset Management, a mutual-fund management company in London, held 12 percent. Banque du Bruges et des Pays Bas held 9 percent and had one representative on the board of directors. The remaining 49 percent of the firm’s shares were widely held. The firm’s shares traded in Brussels and Frankfurt. At a debt-to-equity ratio of 125 percent, Euroland Foods was leveraged much more highly than its peers in the European consumer-foods industry. Management had relied on debt financing significantly in the past few years to sustain the firm’s capital spending and dividends during a period of price wars initiated by Euroland. Now, with the price wars finished, Euroland’s bankers (led by Banque du Bruges) strongly urged an aggressive program of debt reduction. In any event, they were not prepared to finance increases in leverage beyond the current level. The president of Banque du Bruges had remarked at a recent board meeting, Restoring some strength to the right-hand side of the balance sheet should now be a first priority. Any expansion of assets should be financed from the cash flow after debt amortization until the debt ratio returns to a more prudent level. If there are crucial investments that cannot be funded this way, then we should cut the dividend! At a price-to-earnings ratio of 14 times, shares of Euroland Foods common stock were priced below the average multiples of peer companies and the average multiples of all companies on the exchanges where Euroland Foods was traded. This was attributable to the recent price wars, which had suppressed the company’s profitability, and to the well-known recent failure of the company to seize significant market share with a new product line of flavored mineral water. Since January 2000, all the major securities houses had been issuing â€Å"sell† recommendations to investors in Euroland Foods’ shares. Venus Asset Management had quietly accumulated shares during this period, however, in the expectation of a turnaround in the firm’s performance. At the most recent board meeting, the senior managing director of Venus gave a presentation in which he said, Cutting the dividend is unthinkable, as it would signal a lack of faith in your own future. Selling new shares of stock at this depressed price level is also unthinkable, as it would impose unacceptable dilution on your current shareholders. Your equity investors expect an improvement in performance. If that improvement is not forthcoming, or worse, if investors’ hopes are dashed, your shares might fall into the hands of raiders like Carlo de Benedetti or the Flick brothers.1 At the conclusion of the most recent meeting of the directors, the board voted unanimously to limit capital spending in 2001 to â‚ ¬120 million. Members of the Senior-Management Committee Seven senior managers of Euroland Foods would prepare the capital budget. For consideration, each project had to be sponsored by one of the managers present. Usually the decision process included a period of discussion followed by a vote on two to four alternative capital budgets. The various executives were well known to each other: Wilhelmina Verdin (Belgian), PDG, age 57. Granddaughter of the founder and spokesperson on the board of directors for the Verdin family’s interests. Worked for the company her entire career, with significant experience in brand management. Elected â€Å"European Marketer of the Year† in 1982 for successfully introducing low-fat yogurt and ice cream, the first major roll-out of this type of product. Eager to position the company for long-term growth but cautious in the wake of recent difficulties. Trudi Lauf (Swiss), finance director, age 51. Hired from Nestlà © in 1995 to modernize financial controls and systems. Had been a vocal proponent of reducing leverage on the balance sheet. Also had voiced the concerns and frustrations of stockholders. Heinz Klink (German), managing director for Distribution, age 49. Oversaw the transportation, warehousing, and order-fulfillment activities in the company. Spoilage, transport costs, stock-outs, and control systems were perennial challenges. Maarten Leyden (Dutch), managing director for Production and Purchasing, age 59. Managed production operations at the company’s 14 plants. Engineer by training. Tough negotiator, especially with unions and suppliers. A fanatic about production-cost control. Had voiced doubts about the sincerity of creditors’ and investors’ commitment to the firm. Marco Ponti (Italian), managing director for Sales, age 45. Oversaw the field sales force of 250 representatives and planned changes in geographical sales coverage. The most vocal proponent of rapid expansion on the senior-management committee. Saw several opportunities for ways to improve geographical positioning. Hired from Unilever in 1993 to revitalize the sales organization, which he successfully accomplished. De Benedetti of Milan and the Flick brothers of Munich were leaders of prominent hostile-takeover attempts in recent years. Fabienne Morin (French), managing director for Marketing, age 41. Responsible for marketing research, new-product development, advertising, and, in general, brand management. The primary advocate of the recent price war, which, although financially difficult, realized solid gains in market share. Perceived a â€Å"window of opportunity† for product and market expansion and tended to support growth-oriented projects. Nigel Humbolt (British), managing director for Strategic Planning, age 47. Hired two years previously from a well-known consulting firm to set up a strategic-planning staff for Euroland Foods. Known for asking difficult and challenging questions about Euroland’s core business, its maturity, and profitability. Supported initiatives aimed at growth and market share. Had presented the most aggressive proposals in 2000, none of which were accepted. Becoming frustrated with what he perceived to be his lack of influence in the organization. Humbolt, Strategic Planning 1. Replacement and expansion of the truck fleet. Heinz Klink proposed to purchase 100 new refrigerated tractor-trailer trucks, 50 each in 2001 and 2002. By doing so, the company could sell 60 old, fully depreciated trucks over the two years for a total of â‚ ¬4.05 million. The purchase would expand the fleet by 40 trucks within two years. Each of the new trailers would be larger than the old trailers and afford a 15 percent increase in cubic meters of goods hauled on each trip. The new tractors would also be more fuel and maintenance efficient. The increase in number of trucks would permit more flexible scheduling and more efficient routing and servicing of the fleet than at present and would cut delivery times and, therefore, possibly inventories. It would also allow more frequent deliveries to the company’s major markets, which would reduce the loss of sales caused by stock-outs. Finally, expanding the fleet would support geographical expansion over the long term. As shown in Exhibit 3, the total net investment in trucks of â‚ ¬30 million and the increase in working capital to support added maintenance, fuel, payroll, and inventories of â‚ ¬3 million was expected to yield total cost savings and added sales potential of â‚ ¬11.6 million over the next seven years. The resulting IRR was estimated to be 7.8 percent, marginally below the minimum 8 percent required return on efficiency projects. Some of the managers wondered if this project would be more properly classified as â€Å"efficiency† than â€Å"expansion.† 2. A new plant. Maarten Leyden noted that Euroland Foods’ yogurt and ice-cream sales in the southeastern region of the company’s market were about to exceed the capacity of its Melun, France, manufacturing and packaging plant. At present, some of the demand was being met by shipments from the company’s newest, most efficient facility, located in Strasbourg, France. Shipping costs over that distance were high, however, and some sales were undoubtedly being lost when the marketing effort could not be supported by delivery. Leyden proposed that a new manufacturing and packaging plant be built in Dijon, France, just at the current southern edge of Euroland Foods’ marketing region, to take the burden off the Melun and Strasbourg plants. The cost of this plant would be â‚ ¬37.5 million and would entail â‚ ¬7.5 million for working capital. The â‚ ¬21 million worth of equipment would be amortized over 7 years, and the plant over 10 years. Through an increase in sales and depreciation, and the decrease in delivery costs, the plant was expected to yield after-tax cash flows totaling â‚ ¬35.6 million and an IRR of 11.3 percent over the next 10 years. This project would be classified as a market extension. 3. Expansion of a plant. In addition to the need for greater production capacity in Euroland Foods’ southeastern region, its Nuremberg, Germany, plant had reached full capacity. This situation made the scheduling of routine equipment maintenance difficult, which, in turn, created production scheduling and deadline problems. This plant was one of two highly automated facilities that produced Euroland Foods’ entire line of bottled water, mineral water, and fruit juices. The Nuremberg plant supplied central and western Europe. (The other plant, near Copenhagen, Denmark, supplied Euroland Foods’ northern European markets.) The Nuremberg plant’s capacity could be expanded by 20 percent for â‚ ¬15 million. The equipment (â‚ ¬10.5 million) would be depreciated over 7 years, and the plant over 10 years. The increased capacity was expected to result in additional production of up to â‚ ¬2.25 million a year, yielding an IRR of 11.2 percent. This project would be classified as a market extension. 4. Development and roll-out of snack foods. Fabienne Morin suggested that the company use the excess capacity at its Antwerp spice- and nut-processing facility to produce a line of dried fruits to be test-marketed in Belgium, Britain, and the Netherlands. She noted the strength of the Rolly brand in those countries and the success of other food and beverage companies that had expanded into snack-food production. She argued that Euroland Foods’ reputation for wholesome, quality products would be enhanced by a line of dried fruits and that name association with the new product would probably even lead to increased sales of the company’s other products among health-conscious consumers. Equipment and working-capital investments were expected to total â‚ ¬22.5 million and â‚ ¬4.5 million, respectively, for this project. The equipment would be depreciated over seven years. Assuming the test market was successful, cash flows from the project would be able to support further plant expansions in other strategic locations. The IRR was expected to be 13.4 percent, slightly above the required return of 12 percent for new-product projects. 5. Plant automation and conveyer systems. Maarten Leyden also requested â‚ ¬21 million to increase automation of the production lines at six of the company’s older plants. The result would be improved throughput speed and reduced accidents, spillage, and production tie-ups. The last two plants the company had built included conveyer systems that eliminated the need for any heavy lifting by employees. The systems reduced the chance of injury by employees; at the six older plants, the company had sustained an average of 223 missed-worker-days per year per plant in the last two years because of muscle injuries sustained in heavy lifting. At an average hourly total compensation rate of â‚ ¬14.00 an hour, more than â‚ ¬150,000 a year were thus lost, and the possibility always existed of more-serious injuries and lawsuits. Overall, cost savings and depreciation totaling â‚ ¬4.13 million a year for the project were expected to yield an IRR of 8.7 percent. This project would be classed in the efficiency category. 6. Effluent-water treatment at four plants. Euroland Foods preprocessed a variety of fresh fruits at its Melun and Strasbourg plants. One of the first stages of processing involved cleaning the fruit to remove dirt and pesticides. The dirty water was simply sent down the drain and into the Seine or Rhine Rivers. Recent European Community directives called for any wastewater containing even slight traces of poisonous chemicals to be treated at the sources, and gave companies four years to comply. As an environmentally oriented project, this proposal fell outside the normal financial tests of project attractiveness. Leyden noted, however, that the water-treatment equipment could be purchased today for â‚ ¬6 million; he speculated that the same equipment would cost â‚ ¬15 million in four years when immediate conversion became mandatory. In the intervening time, the company would run the risks that European Community regulators would shorten the compliance time or that the company’s pollution record would become public and impair the image of the company in the eyes of the consumer. This project would be classed in the environmental category. 7 and 8. Market expansions southward and eastward. Marco Ponti recommended that the company expand its market southward to include southern France, Switzerland, Italy, and Spain, and/or eastward to include eastern Germany, Poland, Czechoslovakia, and Austria. He believed the time was right to expand sales of ice cream, and perhaps yogurt, geographically. In theory, the company could sustain expansions in both directions simultaneously, but practically, Ponti doubted that the sales and distribution organizations could sustain both expansions at once. Each alternative geographical expansion had its benefits and risks. If the company expanded eastward, it could reach a large population with a great appetite for frozen dairy products, but it would also face more competition from local and regional ice-cream manufacturers. Moreover, consumers in eastern Germany, Poland, and Czechoslovakia did not have the purchasing power that consumers did to the south. The eastward expansion would have to be supplied from plants in Nuremberg, Strasbourg, and Hamburg. Looking southward, the tables were turned: more purchasing power and less competition but also a smaller consumer appetite for ice cream and yogurt. A southward expansion would require building consumer demand for premium-quality yogurt and ice cream. If neither of the plant proposals (i.e., proposals 2 and 3) was accepted, then the southward expansion would need to be supplied from plants in Melun, Strasbourg, and Rouen. The initial cost of either proposal was â‚ ¬30 million of working capital. The bulk of this project’s costs was expected to involve the financing of distributorships, but over the 10-year forecast period, the distributors would gradually take over the burden of carrying receivables and inventory. Both expansion proposals assumed the rental of suitable warehouse and distribution facilities. The after-tax cash flows were expected to total â‚ ¬56.3 million for southward expansion and â‚ ¬48.8 million for eastward expansion. Marco Ponti pointed out that southward expansion meant a higher possible IRR but that moving eastward was a less risky proposition. The projected IRRs were 21.4 percent and 18.8 percent for southern and eastern expansion, respectively. These projects would be classed in the market-extension category. 9. Development and introduction of new artificially sweetened yogurt and ice cream. Fabienne Morin noted that recent developments in the synthesis of artificial sweeteners were showing promise of significant cost savings to food and beverage producers as well as stimulating growing demand for low-calorie products. The challenge was to create the right flavor to complement or enhance the other ingredients. For ice-cream manufacturers, the difficulty lay in creating a balance that would result in the same flavor as was obtained when using natural sweeteners; artificial sweeteners might, of course, create a superior taste. In addition, â‚ ¬27 million would be needed to commercialize a yogurt line that had received promising results in laboratory tests. This cost included acquiring specialized production facilities, working capital, and the cost of the initial product introduction. The overall IRR was estimated to be 20.5 percent. Morin stressed that the proposal, although highly uncertain in terms of actual results, could be viewed as a means of protecting present market share, because other high-quality-icecream producers carrying out the same research might introduce these products; if the Rolly brand did not carry an artificially sweetened line and its competitors did, the Rolly brand might suffer. Morin also noted the parallels between innovating with artificial sweeteners and the company’s past success in introducing low-fat products. This project would be classed in the new-product category of investments. 10. Networked, computer-based inventory-control system for warehouses and field representatives. Heinz Klink had pressed unsuccessfully for three years for a state-of-the-art computer-based inventory-control system that would link field sales representatives, distributors, drivers, warehouses, and possibly even retailers. The benefits of such a system would be shorter delays in ordering and order processing, better control of inventory, reduction of spoilage, and faster recognition of changes in demand at the customer level. Klink was reluctant to quantify these benefits, because they could range between modest and quite large amounts. This year, for the first time, he presented a cash-flow forecast, however, that reflected an initial outlay of â‚ ¬18 million for the system, followed by â‚ ¬4.5 million in the next year for ancillary equipment. The inflows reflected depreciation tax shields, tax credits, cost reductions in warehousing, and reduced inventory. He forecast these benefits to last for only three years. Even so, the project’s IRR was estimated to be 16.2 percent. This project would be classed in the efficiency category of proposals. 11. Acquisition of a leading schnapps2 brand and associated facilities. Nigel Humbolt had advocated making diversifying acquisitions in an effort to move beyond the company’s mature core business but doing so in a way that exploited the company’s skills in brand management. He had explored six possible related industries in the general field of consumer packaged goods, and determined that cordials and liqueurs offered unusual opportunities for real growth and, at the same time, market protection through branding. He had identified four small producers of well-established brands of liqueurs as acquisition candidates. Following exploratory talks with each, he had determined that only one company could be purchased in the near future, namely, the leading private European manufacturer of schnapps, located in Munich. The proposal was expensive: â‚ ¬25 million to buy the company and â‚ ¬30 million to renovate the company’s facilities completely while simultaneously expanding distribution to new geographical markets. The expected returns were high: after-tax cash flows were projected to be â‚ ¬198.5 million, yielding an IRR of 27.5 percent. This project would be classed in the newproduct category of proposals. Conclusion Each member of the management committee was expected to come to the meeting prepared to present and defend a proposal for the allocation of Euroland Foods’ caital budget of â‚ ¬120 million. Exhibit 3 summarizes the various projects in terms of their free cash flows and the investment-performance criteria. Any of various strong dry liquors, such as a strong Dutch gin. Definition borrowed from American Heritage ® Dictionary of the English Language, 4th ed. UVA-F-1356 Exhibit 1 EUROLAND FOODS S.A. Nations Where Euroland Competed Note: The shaded area in this map reveals the principal distribution region of Euroland’s products. Important facilities are indicated by the following figures: 1 The effluent treatment program is not included in this exhibit. The equivalent annuity of a project is that level annual payment that yields a net present value equal to the NPV at the minimum required rate of return for that project. Annuity corrects for differences in duration among various projects. In ranking projects on the basis of equivalent annuity, bigger annuities create more investor wealth than smaller annuities. This reflects â‚ ¬16.5 million spent both initially and at the end of year 1. 4 Free cash flow = incremental profit or cost savings after taxes + depreciation – investment in fixed assets and working capital. Franchisees would gradually take over the burden of carrying receivables and inventory. 6 â‚ ¬25 million would be spent in the first year, â‚ ¬30 million in the second, and â‚ ¬5 million in the third. 2 View as multi-pages