Debt crisis in Africa Essay Example | Topics and Well Written Essays - 2250 words

Debt crisis in Africa - Essay Example During the The First AU Conference of African Ministers of Economy and Finance (CAMEF) held on 7 May 2005 in Dakar, Senegal, one of the recommended issues was the Debt Cancellation. The ministers agreed that debt cancellations should be the ultimate goal for Africa. However, according to the author of the Conference report, they also require that Africa should link the debt cancellation with the Millennium Development Goals (MDGs), and the access of African products to foreign markets. Other recommendations during this Conference concerning debt cancellation were Africa’s domestic debt; debt cancellation should not result in reducing Official Development Assistance (ODA) to Africa; establishment of an African Debt Management Fund to facilitate all debt or cancellation mechanisms and initiatives, which is yet to be established; African countries should come together and propose a common position on debt cancellation; African Countries should carry out an audit indicating the am ount of debt, its origins and terms; African countries are responsible to ensure that Africa’s debt remains indivisible so that any initiative associated with African debt should benefit all African countries; and African leaders should avoid being subjected to conditionalities related to debt cancellation. However, the conclusion of the recommendations was that it has to be approved by the World Bank and the IMF. Never once the World Bank or the IMF prescriptions of economic policies reform was successful but vice versa. Countries affected by economic crisis are required to undergo structural arrangement and conditional arrangements by the World Bank and the Fund, but their prescriptions have proven failure not only in Africa but also in other developing countries. According to Dembell, their structural adjustment program has led to economic stagnation, fewer investments, more external dependence, and has weakened the state’s role in developing social and economic wel fare.

George Simon Ohm Essay Example for Free

George Simon Ohm Essay Fair test Safety In order to make the experiment there are certain procedures that I must follow. I must use the same voltmeter, ammeter and constantan wire. This is in case other ammeters or voltmeters are using different settings. To make the experiment safe we must check all wires and crocodile clips for faults. When we are doing the experiment we must also use a low voltage. Method 1. Collect apparatus: a voltmeter, an ammeter, 7x wires, 1 crocodile clip, and 100 cm constantan wire. (at lengths of 26 standard wire gauge, 28 standard wire gauge and 36 standard wire gauge) 2. Set apparatus up as shown: 3. Set the power pack on as low a voltage as possible. (So that there is not too high a current passing through the circuit. ) 4. Place the 100 cm of constantan round the holders. Then connect the crocodile clip. 5. Turn on the power pack and record what the ammeter and voltmeter read. 6. Record the results, in a pre prepared table. 7. After recording all results for the 26swg piece of wire. Wait. Turn off the power pack. Take 28 SWG constantan wire. Turn on your power pack and record what the ammeter and voltmeter say. 8. Change the wire to 36 SWG of constantan wire and repeat the experiment. 9. Work out the resistance for all the results using Ohms law. V = I*R Obtaining evidence Results for Constantan 26 SWG Table 1 Length (cm) Voltage (Volts) Current (Amps) Resistance (Ohms)Â  Table 2 Length (cm) Voltage (Volts) Current (Amps) Resistance (Ohms) For the graph with all 3 tabled results for constantan 26swg see attached sheet 1. Results for Constantan 28swg Table 1 Length (cm) Voltage (Volts) Current (Amps) Resistance (Ohms). Table 2 Length (cm) Voltage (Volts) Current (Amps) Resistance (Ohms) Table 3 Length (cm) Voltage (Volts) Current (Amps) Resistance (Ohms) For the graph with all 3 tabled results for constantan 28swg see attached sheet 2. Results for Constantan 36swg Table 1 Length (cm) Voltage (Volts) Current (Amps) Resistance (Ohms) Table 2 Length (cm) Voltage (Volts) Current (Amps) Resistance (Ohms) Table 3 Length (cm) Voltage (Volts) Current (Amps) Resistance (Ohms)For the graph with all 3 tabled results for constantan 36swg see attached sheet 3. Analysis Analysis of length I predict that there will be higher resistance in wires that are longer in length. My prediction was correct. As the length of the wire decreases so does the resistance. This is clearly visible on all three of the graphs. On the graph for constantan 26swg (sheet1) there is a strong negative correlation. The resistance for all three results at 100 cm is between 3. 24 ? 3. 50 ? and at 5cm it is between 0 ? and 0. 5 ?. From 65cm-40cm the results I collected are almost identical. There is hardly any variation in the results and it is shown by the graph. The graph for constantan 28swg (sheet 2) is by far the best graph because of the closeness of all of the readings taken. There is a slight anomalous result at the 95cm reading. From the results collected in table 1 he resistance rose from 4. 49 ? to 4. 55 ?. This did not affect my results too much there was still a clear trend. This is however extremely unlike the graph for constantan 36swg (sheet3). There is clearly a huge error. At 90cm there is an incredibly out of position recording. The voltage for this point was 0. 8 V. this is roughly 2. 0 Volts away from where ideally it would be and this has caused such a dramatic change in the direction of the plotted points. I also believe that as the length doubles the resistance will also double. My prediction was correct. An example of this would be taken from table 3 of constantan 28swg. The length is 10cm and the resistance was 0. 5 ? ; the resistance for 20cm was 0. 98 ?. 0. 5 x 2 = 1 1 0. 98 = 0. 02 This is almost exactly double. This is only one example of the resistance roughly doubling with length. Analysis of thickness In order to analyse the thickness of the wire I will first need to work out the area of the wire. I have got the thicknesses in British Standard Gauge and I have found a site (http://www.falcon-acoustics. co. uk/hintstipsgeneral. htm) which has a table with the thickness converted into millimetres. The conversions for the wires thickness are as follows: Constantan 26swg = 0. 457mm Constantan 28swg = 0. 376mm Constantan 36swg = 0. 193mm This however is the diameter of each of the wires; and the formula for the area of a circle is ? x ri. The radius of a circle is half the diameter. To work out the area of the wire I must first halve the diameter then square it then multiply by pie. Pie (? ) is 22 i 7 the number has definite end. Now I will work out the area for each of the wires. Constantan 26swg:Â   029240465 mmi This shows that the Constantan 26swg is thicker than the Constantan 28swg and the Constantan 36swg and by how much in mmi. I also believe that the thicker the wire is the less resistance will be present. This is correct. I have taken the resistance from all 9 tables and put them in a graph (sheet4). I have taken the resistance from 50cm for all of them. The graph clearly shows the huge difference in resistance. As you can see the Constantan 36swg is more resistant than the 26swg and 28swg Constantan wire. The area of the Constantan Evaluation Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE Electricity and Magnetism section.

About The Social Work Career

About The Social Work Career The social work profession promotes social change, problem solving in human relationships and the empowerment and liberation of people to enhance well-being. Utilising theories of human behaviour and social systems, social work intervenes at the points where people interact with their environments. Principles of human rights and social justice are fundamental to social work. COMMENTARY Social work in its various forms addresses the multiple, complex transactions between people and their environments. Its mission is to enable all people to develop their full potential, enrich their lives, and prevent dysfunction. Professional social work is focused on problem solving and change. As such, social workers are change agents in society and in the lives of the individuals, families and communities they serve. Social work is an interrelated system of values, theory and practice. Values Social work grew out of humanitarian and democratic ideals, and its values are based on respect for the equality, worth, and dignity of all people. Since its beginnings over a century ago, social work practice has focused on meeting human needs and developing human potential. Human rights and social justice serve as the motivation and justification for social work action. In solidarity with those who are dis-advantaged, the profession strives to alleviate poverty and to liberate vulnerable and oppressed people in order to promote social inclusion. Social work values are embodied in the professions national and international codes of ethics. Theory Social work bases its methodology on a systematic body of evidence-based knowledge derived from research and practice evaluation, including local and indigenous knowledge specific to its context. It recognises the complexity of interactions between human beings and their environment, and the capacity of people both to be affected by and to alter the multiple influences upon them including bio-psychosocial factors. The social work profession draws on theories of human development and behaviour and social systems to analyse complex situations and to facilitate individual, organisational, social and cultural changes. Practice Social work addresses the barriers, inequities and injustices that exist in society. It responds to crises and emergencies as well as to everyday personal and social problems. Social work utilises a variety of skills, techniques, and activities consistent with its holistic focus on persons and their environments. Social work interventions range from primarily person-focused psychosocial processes to involvement in social policy, planning and development. These include counselling, clinical social work, group work, social pedagogical work, and family treatment and therapy as well as efforts to help people obtain services and resources in the community. Interventions also include agency administration, community organisation and engaging in social and political action to impact social policy and economic development. The holistic focus of social work is universal, but the priorities of social work practice will vary from country to country and from time to time depending on cultural, h istorical, and socio-economic conditions. This international definition of the social work profession replaces the IFSW definition adopted in 1982. It is understood that social work in the 21st century is dynamic and evolving, and therefore no definition should be regarded as exhaustive. Adopted by the IFSW General Meeting in Montrà ©al, Canada, July 2000 http://www.ifsw.org/f38000138.html ///////////////////////////////////////////////////////////////////////////////////////////////////////// The Nature of Social Work: A Critical Overview as well as social work values, ethics, and skills of social work practice. In addition, the role of a social worker in society will also be examined, and an understanding of social work will be critically evaluated. Knowledge, skills and values are three different things and should be treated as so. You can learn all the knowledge you need from a book, but this does not mean that you will have the skills to put that knowledge into practice. Once you acquire the skill and knowledge, if you have no value of them and they mean nothing to you, are then in danger of misusing that skill and knowledge. Values of social work have to be put into two categories: social work values, and social workers values. Clark (2004) puts this into classification of â€Å"Institutional and Individual†.The British Association of Social Work (BASW) code of ethics states that social work is committed to five basic values: Human dignity and worth, social justice, service to humanity, integrity and competence. â€Å"Social work practice should both promote respect for human dignity and pursue social justice through integrity and competence† (BASW 2002). These values are requirements that social workers are expected to adhere to. They promote the rights to privacy, confidentiality, and protection, the right of choice, to help against discrimination and meet the diversity of service users. Social work has been descried as being â€Å"value based† (Clark 2004). conflicts of values cannot be ruled out. Putting the values of social work into practice can sometimes cause a conflict of values. As well as looking after people who are vulnerable, social workers also deal with people who are seen as a threat to society. When dealing with a service user with mental health problems the social worker will be working with the interest of the service user in mind, making sure that their human dignity and worth are respected, that social justice is seen to be up held, and to do their job with integrity and competence. All these values, and at the same time, apply to people living within the community. If the service user was deemed to be a danger to the public then the social worker must see that social justice is done to protect the community, the service user may disagree with this and feel that their value of social justice has been compromised, and as their freedom has been taken away, and they have lost their human dignity and worth. Clark (2004 p44) concludes that â€Å"It is tempting t o say that there is no such thing as social work values.† And that â€Å"The values of social work remain a powerful rallying cry†. Whereas Beckett (2007 p189) states â€Å"Almost all of the important decisions that are made by social workers have a value component.† Having knowledge of a subject does not mean that someone as the skills or values that may accompany that knowledge. You can read all the books and have the knowledge on how to fly a plane, and know all the components, but to make it fly you need the skill to make all the parts work together. In most occupations what separates the professional from non- professionals is a specialised knowledge beyond the commonplace knowledge of ordinary members of the public. In social work this is not always the case, since much of the knowledge of social workers is common place, an example would be that it is common knowledge that bringing up children can be demanding, but social workers interact with parents whose understanding of this knowledge is so poor, that they are in danger of harming their children. This is not to say that all knowledge of social work is common knowledge, sometimes professional specialised knowledge is called upon. If a service user has mental health issues, then they may need to be sectioned under the Mental Health Act. This would need the knowledge of a professional Approved Social Worker. This may include the intervention of a social worker to place a child into foster care, requiring specialised knowledge. Social work expertise is regulated by government and law, and therefore requires an understanding and a good knowledge of the relevant areas of law and of government policies and acts. A collection of different skills is required for social workers to do their job with competence. These include being able to develop trusting relationships with service users and carers, without becoming emotionally involved; communication skills, including listening, speaking and writing; to be resilient and able to handle pressure from service users who feel vulnerable and may not understand what is going on; being aware of peoples different needs and respect diversity; have patience and maturity, and be able to negotiate for their clients. There is also the need to develop office based skills, as well as skills needed for personal interaction. These will include, being able to work well in a team with colleagues and professionals from other agencies; the ability to manage a complex workload, sometimes working over caseweight; being computer literate with good keyboard, database and word processing skills; and have good management, time keeping and organisational skills. Most of th ese skills cannot be learnt from a text book and will take time and life experience to develop, mistakes can happen and inevitability will, but by being able to reflect, process and learn from our mistakes, then these skills can improve and get stronger. They are sometimes called upon to enforce sensitive aspects of the law, for example in obtaining court orders to remove children from their current families, or in detaining people under the Mental Health Act. All duties performed and carried out by social workers, are done so in the best interests of those involved. Social work also promotes social justice, giving fair access to public services and benefits, equal treatment and protection under the law and to help meet basic human needs. Social work helps people to meet their personal needs and to reach their potential and to contribute to the creation of a fairer society. ‘The difficult position of social work is not only due to the perhaps depressing character of the problems it deals with. Crucially, social work sits directly on top of the fault lines of controversy of social values (Clark 2000 p2). The communities that we live in and the world around us is in perpetual change, which makes social work even more challenging. The ethics, values, cultures, diversities, and minorities that contribute in making up societies differ greatly from one to the other, whether in the suburbs, rural areas, or the close proximity of life in the city, changes in all the above can be noticeable within different communities. Looking at generalised views of what society should be would differ vastly if we took a cross-cultural view of what society values are to that community in question. The values that our society holds are changing; many men now stay at home whilst the woman goes out to work. The Civil Partnership Act 2004(General Register office 2005) came into effect on 5 December 2005 allowing same sex marriages, and many people now live alone, without stigma, some by choice and some from necessity, this change within society covers such a large range of values that universal agreement is a near impossibility. This means that social work is not an exact science and never will be. There will always be an opinion th at differs, personal values and ethics that dont fit the norm, which is why when people access social services, they will not always be fully satisfied with the outcome, as there are always variables. Beckett (2006) suggests that the role of a social worker can be put into three groups: Advocacy, Direct Change Agent and Executive. The advocacy role can be either direct or indirect. Direct change agent being counsellor or therapist, mediator, educator and catalyst, with executive role as almoner, care manager, responsibility holder, co-ordinator and service developer (Beckett 2006 p8). The aims of social workers are to identify social pressures and needs in the community, to employ existing resources or to establish those that might be lacking. Communities may, for example, be in need of housing, improvement and development of the environment, day care for preschool children, after school clubs, facilities for disabled people, anti social problems and rehabilitation centres, amongst other needs. As with all professions, social workers are involved in research and administration. This is to help identify the problems and needs of the service user and to explore the most effective way of preventing and resolving whatever problems there may be, and to address that need. In addition to interviewing service users at the social workers place of work or their homes, and contacting other significant persons in their social environments, social workers are also responsible for a large amount of office work. This includes the preparation of reports involving the service user for internal or external agencies, which could include court reports. The nature of social work within this essay has been critically discussed in depth. The role of social work and of social workers in society is a demanding one, the pressure and stress of dealing with so many aspects of society and differentiating cultures means that the challenges social workers face, on a day to day basis, will be hard but also very rewarding. With the correct training and education, social work skills, values and knowledge can help to improve peoples lives. The role of the social worker is one that will always be ever changing, how these changes happen is a matter for debate. Some changes in social work are welcomed and some are not. Hilary Searing (2000-08) states that â€Å"social workers are now little more than care managers who simply mediate between the client and organisation†. Others would argue that this is not the case, and that social workers do more than just mediate. Whatever the future holds for social work and social workers, one thing is cer tain, with the huge diversity in social work and the ever changing roles social workers play in society, there will always be a place for social workers ensuring that social justice is delivered ethically and without prejudice.

The Anatomy Of A Modern Revolution :: Political Politics

The Anatomy Of A Modern Revolution? A revolution is a general and fundamental change in the political order when the mass of people rejects its government and the way things are run and is the result of failure to introduce gradual form. The people come together and there is a dramatic violent and forceful movement to change the way society is structured. A revolution itself is successful when one political, social and economic system has been replaced with an alternative that will bring about the necessary changes needed to remove the major sources of discontent and to improve life. The first stage of a revolution is the development of a revolutionary situation. It is characterised by increasingly widespread opposition to the existing government, which has lost effective control of the nation. The people then try to attack their government; this attack sometimes involves strikes, assassinations, demonstrations and riots. The government usually responds to these acts with a refusal to grant reform. From this, the accumulated anger inside the people explodes and the result is the overthrow of the old order. This always involves some form of military action in the capital, including taking over government buildings and occupying key transport and communication centres. There is not always only one group wanting to take power but a number of groups with quite different programs usually emerge. When the new government has taken power, it usually introduces policies that are very different from those of the previous government. People are asked to make sacrifices in order to ensure the changes work out. The relationships between classes and groups in society are affected, and a new group seeking dominance for itself usually pushes down a previously dominant class. However, many problems inherited from the previous government limit the extent of its reform. Next may be the most violent phase of the struggle - the consolidation of power. Loyalty to the new government is usually expected and demanded but allies of the old government may attempt to overthrow the new revolutionary government, to reinstate those who used to enjoy power and privilege and to restore the old order totally. The Anatomy Of A Modern Revolution :: Political Politics The Anatomy Of A Modern Revolution? A revolution is a general and fundamental change in the political order when the mass of people rejects its government and the way things are run and is the result of failure to introduce gradual form. The people come together and there is a dramatic violent and forceful movement to change the way society is structured. A revolution itself is successful when one political, social and economic system has been replaced with an alternative that will bring about the necessary changes needed to remove the major sources of discontent and to improve life. The first stage of a revolution is the development of a revolutionary situation. It is characterised by increasingly widespread opposition to the existing government, which has lost effective control of the nation. The people then try to attack their government; this attack sometimes involves strikes, assassinations, demonstrations and riots. The government usually responds to these acts with a refusal to grant reform. From this, the accumulated anger inside the people explodes and the result is the overthrow of the old order. This always involves some form of military action in the capital, including taking over government buildings and occupying key transport and communication centres. There is not always only one group wanting to take power but a number of groups with quite different programs usually emerge. When the new government has taken power, it usually introduces policies that are very different from those of the previous government. People are asked to make sacrifices in order to ensure the changes work out. The relationships between classes and groups in society are affected, and a new group seeking dominance for itself usually pushes down a previously dominant class. However, many problems inherited from the previous government limit the extent of its reform. Next may be the most violent phase of the struggle - the consolidation of power. Loyalty to the new government is usually expected and demanded but allies of the old government may attempt to overthrow the new revolutionary government, to reinstate those who used to enjoy power and privilege and to restore the old order totally.

Profit Maximization / Maximization of Shareholder Wealth Essay

The primary goal of financial management regarding corporations should be to maximize shareholder wealth on the whole. If management was to only concentrate on profit maximization, they would more than likely run their corporations into the ground. The very existence and concept of a corporation is beneficial to business in numerous ways. First and foremost, corporate status helps release management from possible enourmous financial liability issues. Second, shareholders are the key of checks and balances in a corporation. Management is wise to heed the concerns and needs of shareholders. The book uses a good example when referring to mergers. A merger in the future of a corporation could be viewed as a positive move – bringing more wealth, more talent and/or a larger consumer base. However, management could see the move as a negative one as they would have to possibly change roles and give up certain privledges they are accustomed to. Although the merger may bring the corporation positive growth, management could be reluctant to make the merge. This could be the case in a main goal of personal profit maximization. Without the merge, the company could lose steam and competitiveness and shareholder could lose in the end. It is important to note that shareholders may be employees of the firm who would become more loyal and efficient when they are rewarded financially. Shareholders financially invest in the corporation and if rewarded with good returns, will continue to invest generously. The more shareholders find value in a given corporation, the more likely they are to financially invest, which in turn gives the corporation more positive funds to grow business. Also, social responsibility may play a part in the maximization of shareholder wealth. If the public perceives a corporation as being socially responsible they may become more loyal customers. Knowing that a local corporation has taken steps toward pollution control would make me much more likely interested in consuming their goods as I would feel that I was aiding my community. More business from loyal consumers maximizes profits as well as shareholder wealth. Although the above example of pollution control may  cost more for the corporation than not deploying the controls, it would create a more loyal customer base. I believe that a loyal customer base is more beneficial to have than a fly-by-night customer. As shareholders are rewarded financially and P/E grows, corporations appear to be winning investments on the stock market. The more value customers perceive in a business, the more likely they are to financially support the institution.

Analysis of Starbucks

Analysis of Starbucks Free Online Research Papers Starbucks Coffee, Tea and Spices started out in 1971 as a local coffee bean roaster and retailer in Seattle, Washington by three partners, two of which were teachers and the other a writer. These three men were inspired by a mutual friend to open their first store. In 1983, Howard Schultz joined the company and saw the potential of this small coffee bean retailer. Many times he went to the owners with his visions and dreams for their company and how it could grow and many times he was met with rejection. The owners felt that there was not a need for a beverage business as â€Å"coffee was something to be prepared in the home.† Time and time again Howard approached them with his visions and then quit in 1985 to open his own coffeehouse. Opportunity knocked in 1987, and with help from investors he bought Starbucks Coffee, Tea and Spices and changed the name to Starbucks. For the next twenty one years, Starbucks grew to become the largest coffeehouse company in the world with over 16,226 stores worldwide including 11,434 stores located in the United States. Even though the company recently closed 600 of its under-performing company-owned stores they still have plans to open 200 more stores in 2009. Starbuck’s headquarters is stationed in Seattle, Washington. MISSION STATEMENT2 Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. The following six guiding principles will help us measure the appropriateness of our decisions: Provide a great work environment and treat each other with respect and dignity. Embrace diversity as an essential component in the way we do business. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. Develop enthusiastically satisfied customers all of the time. Contribute positively to our communities and our environment. Recognize that profitability is essential to our future success. Environmental mission statement We fulfill this mission by a commitment to: Understanding of environmental issues and sharing information with our partners. Developing innovative and flexible solutions to bring about change. Striving to buy, sell and use environmentally friendly products. Recognizing that fiscal responsibility is essential to our environmental future. Instilling environmental responsibility as a corporate value. Measuring and monitoring our progress for each project. Encouraging all partners to share in our mission. PRODUCTS 1) Coffee Offers more than 30 blends and single-origin coffees 2) Handcrafted Beverages Fresh-brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, and Tazo teas. 3) Merchandise Assorted home espresso machines, coffee brewers and grinders, a line of premium chocolate, coffee mugs and coffee accessories, and a variety of gift items. 4) Fresh Food Baked pastries, sandwiches and salads. 5) Starbucks Entertainment A selection of the best in music, books and film. 6) Global Consumer Products Bottled Starbucks Frappuccino beverages, chilled cup coffee, espresso drinks, Tazo teas and super premium ice creams. 7) Starbucks Card Reloadable stored-value cards. 8) Brand Portfolio Starbucks Entertainment, Tazo Tea, and Ethos Water. COMPETITORS3 1) DUNKIN 2) MCDONALDS 3) NESTLE 4) YUM BRANDS 5) DARDEN RESTAURANTS Starbucks is ranked #4 by sales in the restaurant sector. McDonalds is #1, but then McDonalds has a more extensive menu. Trailing behind is Yum Brands (YumYum Donuts) as #2 and Darden Restaurant in #3 spot. Another competitor of Starbucks is Nestle, who offers their own brand of premium coffee, hot chocolate and ice cream. Starbucks believes in order to increase their sales and draw in more customers they need to make some changes as competition is fierce, especially in this economy. They feel that by closing under-producing stores, redesign the space behind the counters, using automatic espresso machines to speed up production time and transform the â€Å"Customer Experience† they can achieve this goal, among many changes. Another way they are trying to attract customers is they want the customers to feel like Starbucks is their â€Å"third home† and even provides free Wi-Fi to its customers. They want customers to experience Starbucks, not just come in and buy coffee. This is going to be quite a challenge for Starbucks as the economy is unstable, the presidential election is right around the corner, people are losing their homes and their jobs. The consumers are also tightening their spending. While I research and learn about Starbucks and what the big deal is with this high priced coffee company, I found myself really admiring Howard Schultz and how he has guided and mentored this company. And, after researching and learning how and why people spend, I realized that I buy Starbucks out of habit, not loyalty. Until today I could not explain why I only buy Starbucks whole bean coffee, 4 bags at a time. The coffee is good but does it warrant paying $11 per bag? Then I realized that I buy out of habit. The outcome of this session long project will be interesting to me to see if, after this is all done, will I still buy Starbucks out of habit or will I become another loyal customer? PRIMARY ATTRIBUTES 1.) Quality3- Starbucks prides itself on the quality of its products. Whether it’s their fresh roasted coffee or their premium salads and sandwiches the company stands by its commitment to quality ingredients and affordable prices. It only purchases coffees that have been grown and processed by suppliers that meet strict environmental, social, economic and quality standards. 2.) Convenience4- Starbucks stores can be found in urban and suburban areas, as well as many rural communities worldwide. An expanded number of Drive-Thru and Off-Highway stores also provide a convenient alternative for customers. Consumers can also find Starbucks kiosks in many of their favorite places such as Barnes Noble bookstores, Hyatt Hotels and United Airlines facilities. Starbucks also strives to provide several different amenities for their consumers that aren’t found at other coffee breweries. These amenities include free electricity for consumers and many provide free wireless internet access. POSITIONING MAP High (Convenience) | Coffees Fresh Food Handcrafted Beverages |Merchandise __________High (Quality)______________________________Low (Quality)_____________ | | ______________________________Low (Convenience)_________________________ PRIMARY TARGET MARKETS 1.) Yuppies- Professional, middle to upper class, working individuals. Most often in families without children. 2.) College Students- Young Adult to Middle Aged students who attend colleges and universities. Most often in need of extra energy and caffeine. 3.) Upper Class- Individuals whose income exceeds $80,000 a year. Can include families with or without children. 4.) Middle Class- Individuals whose yearly income falls between $25,000-80,000 a year. Can include families with or without children. 5.) Young Adults- Individuals between 16 and 25 years of age. Can include families with or without children. Product Categories 1.) Premium Coffees- Freshly ground and roasted coffees in more than 30 blends and flavor combinations 2.) Handcrafted Beverages- Includes hot and iced espresso beverages, coffee and non-coffee blended beverages and Tazo teas. 3.) Merchandise- Includes home espresso machines, coffee brewers and grinders, premium chocolates, coffee mugs and accessories and various gift items. 4.) Fresh Food- Includes premium salads, sandwiches and pastry assortments. 5.) Entertainment- Includes movies, books and films sold in Starbuck stores. Product-Market Grid Coffees Handcrafted Bev. Merchandise Fresh Food Entertainment Yuppies 3 1 2 College Students 2 1 3 Upper Class 1 2 3 Middle Class 1 2 3 Young Adults 1 2 3 _____________________________________________________________________________________ Strategy The Starbucks Company seems to hold fast to their Product Development strategies. Although Starbucks is interested in expanding their target market, it feels that more focus should be placed on expanding on products currently offered. Starbucks5 often tests new products as part of its ongoing innovation and transformation. For example, Starbucks starts testing by selling an 8 oz short brewed coffee for $1 and giving free refills on all brewed coffee. The company will continue to test new products and ideas to be offered to Starbucks consumers. Competitive Advantage By providing its consumers with a combination of extreme convenience and quality products Starbucks definitely holds a competitive advantage over other coffee-retailers. By combining attributes that consumers find attractive, Starbucks can create brand loyalty and keep consumers from choosing other coffee retailers for their coffee needs. Distribution Starbucks is continually expanding their distribution outlets. In 2004, they had 20,000 outlets that sold their specialty products, including Wal-Mart, Target, a variety of other grocery stores and pharmacies. In 2005, the number of stores involved in the Starbucks’ distribution channel increased to 31,000, exhibiting almost a 50% improvement and drastically expanding their ability to reach customers (Knol.com). Logistics Most of the distribution of Starbucks products in the U.S. is conducted by a trucking system. The company houses several distribution centers throughout the nation and moves a majority of their products by land. They do, however, have several roasting plants outside the U.S. and must rely on other modes of transportation such as airplanes and freighters. The majority of the Company’s direct distribution accounts are through national broad line distribution networks with SYSCO Corporation and U.S. Foodservice TM. Starbucks foodservice sales, customer service and support resources are aligned with those of SYSCO Corporation and U.S. Foodservice. Starbucks and Seattle’s Best Coffee are the only super premium national-brand coffees actively promoted by SYSCO Corporation (US Securities and Exchange Commission). Products other than whole bean coffees and coffee beverages sold in Starbucks retail stores are obtained through a number of different channels. Beverage ingr edients, other than coffee and milk, including leaf teas and the Company’s selection of ready-to-drink beverages, are purchased from several specialty manufacturers, usually under long-term supply contracts. Food products, such as fresh pastries, breakfast sandwiches and lunch items are generally purchased from both regional and local sources. Coffee-making equipment, such as drip and coffee press coffeemakers, espresso machines and coffee grinders are generally purchased directly from their manufacturers. Coffee-related accessories, including items bearing the Company’s logos and trademarks are produced and distributed through contracts with a number of different suppliers. Starbucks also has special agreements with Kraft foods for distribution in local grocery stores and warehouse club stores throughout the U.S. in which Kraft manages all distribution of products for those locations. Physical Facilities The Starbucks website does state that they own several distribution centers throughout the U.S. and that they have even built international distribution centers. I was unable, however, to find any information regarding physical size or interior/exterior attributes. There was also no specific information regarding the locations of these distribution centers. I was able to check some state websites and locate distribution centers in California, Oregon and Nevada. But again no other details were released. Distribution Advantage Although there was no specific information regarding the number of distribution centers for the company Starbucks it still seems that the company does have the competitive advantage in regards to distribution of their products. Most of these advantages come from their partnerships with other companies and organizations such as Kraft foods, Barnes Noble, and SYSCO. These companies either take over the distribution of products or help with distribution for the company. This allows Starbucks to produce more product and results in more competitive prices for their consumers. The company is constantly expanding their distribution outlets as well. This allows consumers to find all their favorite Starbucks products at many convenient outlets (starbucks.com). If Starbucks continues to increase their product variety, distribution outlets and distribution channels, soon they will not just have the competitive advantage, they will become an unstoppable force in the coffee industry. Promotional Mix Starbucks generally does not use conventional advertising methods because the company as found that there is too much competition for consumers attention in TV, radio and print media. In fact the company did not begin to use conventional advertising methods such as TV advertising until 2007. The company tends to rely more on increased distribution and brand recognition as well as its charitable contributions. The company, as mentioned before, is continually increasing their distribution outlets in order to continually improve their brand recognition and maximize accessibility of their products. By placing more products in places continually visited by consumers they are able to make their coffees more widely known to consumers then their competitors’ brands. Another source of unconventional advertising is their use of charitable work to advertise their brand image. Starbucks usually picks one or two charity events in the community it serves to promote the company. The company feels that this will also inspire people inside and outside the company and reinforce the company’s value and image (Lorenzini, 1993). The company’s principals state that â€Å"every store is part of a community and we take our responsibility to be good neighbors seriously,† (starbucks.com). It was in 2007 that the head of marketing at Starbucks, Anne Saunders, left the company for other opportunities. This allowed the company to head in another direction and explore new avenues in marketing and advertising of products. Today you are finally able to see commercials advertising the Starbucks brand and its products to consumers. Marketing Mix Until its introduction into television advertising, Starbucks had little means of advertising individual products. In fact, you actually did not know what products the company produced until you saw them in stores or at local kiosks. Even with it’s induction into the television world, Starbucks remains anything but conventional. Starbucks does run a few standard promotional TV campaigns. Campaigns in which the goal is obvious, promotes the product and makes the consumer feel they must buy it. These products include specific lattes or their new double shot canned espressos. If you have been watching this holiday season, however, you will notice that the ads promote something different, they promote something simpler: passing the cheer. They are promoting the season and the celebration of the holidays, there is no plug for a specific product or hint of a sales pitch. Way to go Starbucks! Promotional Advantage The companies’ lack of conventional advertising methods did put them at a competitive disadvantage for several years. In fact the company held no advantage in marketing at all. They relied on everything but advertising to sell their products and unfortunately in this day and age it is almost impossible to survive without more advanced marketing strategies. Competitors such as McDonalds and Dunkin Doughnuts have had an advantage in regards to promotion for several years. The companies new found advertising methods do have the potential to give them the competitive advantage in promotion. If they continue to explore different avenues of advertising they will increase their brand recognition with consumers and eventually increase brand loyalty. Pricing Strategies It was extremely difficult to find any information regarding the pricing strategies of Starbucks. General information found on the internet stated that Starbucks â€Å"prices its products competitively with prevailing high-end coffee prices. Starbucks represents an attractive combination of affordable prices, high quality and convenience,† (Song-Ming Kim, 2002). The only information I was able to find that was not a generic response to pricing was in regards to their drink size. They referred to it as Goldilocks pricing, as in the story of the three bears and finding something that was not too big or too small but finding something that is just right. â€Å"That’s why Starbucks offers their drinks in three sizes. The psychology is based on avoidance of extremes. If I offer two sizes, regular and large, most people will go for the regular. If I then add a third size, extra large, people will be drawn to the one in the middle. Even if no one ever buys a single extra large (and the extra large size in Starbucks is a pint of coffee !) just having it offered will persuade many customers to upgrade. A quick calculation shows the power of this approach. Suppose that selling regular size makes a net profit of 5% of sales after fixed costs i.e. it is just keeping the lights on. Persuading just one person in 4 to take the next size up doubles this,† (Drysburgh). Pricing Advantage It is becoming evident that Starbucks no longer has any pricing advantage in the coffee market it if it ever had one to begin with. Recent emerging competitors such as McDonalds and Dunkin Doughnuts are now becoming known for their good, inexpensive coffees. Starbucks has taken steps to become a stronger competitor in regards to pricing. They are currently researching a campaign that would include offering a cup of coffee for just $1, a cup that would include free refills. This definitely is something that no other competitor is offering at the moment. This strategy will definitely bring in more consumers but may hurt the sales of other products that produce more revenue for the store. This new pricing strategy is still in the experimental stage. References Drysburgh, Alastair. Profits Leak Detective: How Are Starbucks Taking Over the World?. Retrieved on January 2nd, 2009 from profitsleakdetective.com/articles/how-are-starbucks-taking-over-the-world.html. Kim, Seong- Min. 2002. Business Policy and Strategy: Starbucks. Retrieved on January 2nd, 2009 from http://www2.hawaii.edu/~seongmin/Starbucks.pdf. Knol.com. Retrieved on December 26, 2007 from http://knol.google.com/k/-/analysis-of-starbucks/ow5jbvr76bz9/8#. Lorenzini, B. 1993. Grounds for Success. Restaurants and Institutions 103(23).160. UNITED STATES SECURITIES AND EXCHANGE COMMISSION. 2007. TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. 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