Resource Based View of the Firm

Design/methodology,'approach – The paper proposes a link between value theory and accountability using a Resource Value-Resource Risk perspective as an alternative to the Capital Asset Pricing Model. The link operates first from the labor process, where value is created but is imperfectly observable by intra-firm mechanisms of organizational control and outside governance arrangements without Incurring monitoring costs. Second, It operates through contractual arrangements which Impose fixed cost structures on activities with variable revenues.Findings – The paper thereby explains how value originates in risky and difficult to monitor productive processes and is transmitted as rents to organizational and capital market constituents. It then reviews recent contributions to the RUB, arguing that the proposed new approach overcomes gaps inherent in the alternatives, and thus offers a more complete and integrated view of firm behavior. Originality/value – The RUB can become a coherent theory of firm behavior. If It adopts and can Integrate the labor theory of value. Associated measures of risk arising from the labor process and mechanisms of accountability.Keywords Resources, Risk management, Labor, Competitive advantage Paper type Research paper Value, profit and risk 1 . Introduction To what extent is strategy framed in accounting terms and what role do accounting numbers and techniques play in setting strategy? In both cases the answer is probably not enough, In view of the potential contribution on offer from accounting generally, and from critical accounting In particular. In recent years, the resource-based view (RUB) of the firm, has achieved widespread dissemination In academic literature and management practice (Acted et al. , 2006).It explains nominative advantage, or delivery of sustained above-normal returns (Apteral, 1993) or economic profit (Barney, 2001), in terms of firms' bundles of resources (Amity and Shoemaker, 1993; Rumble, 1984), which are valuable, rare, inimitable and non- substitutable (FRI.) (Barney, 2001, emphasis added). A theory linking asset value and abnormal returns Is therefore The author would Like to thank participants at the European critical Accounting studies conference, multiversity AT York, 2 Institute of Chartered Accountants in Scotland, whose financial support helped develop the ideas in this paper.

Gun politics in the United States Essay

To draw up case studies, it is first important to understand its various aspects. For an effective case study, one must first understand the principles of a case. It is important to understand what a case is, the types of cases there are and their purposes. Following this understanding, the methods of analyzing and discussing cases must be explored. After mastering these skills, The three stages of problem, decision and evaluation are vital to the organization of the case study. 4 ? 5 6 7 ? In all case studies we should first explore the brief synopsis of the case and its pedagogical objectives. 8 9 ? In a case method classroom, both the instructor and students must be active in different ways. The art of a case method instructor is to ask the right question at the right time, provide feedback on answers, and sustain a discussion that opens up meanings of the case. If students don’t come to class well-prepared, the case method will fail because the people responsible for making meaning from the case are not equipped to do it. ? 10 ? Case discussions are full of facts and information, but they aren’t shaped into single interpretation, the â€Å"truth†. Instructors don’t announce definitive conclusions or right answers, although they may discriminate between more and less plausible solutions. Students enter and leave the classroom responsible for the outcomes of the discussion. For students, this is a shift from the comfort of authority and single truth to the hard work of personal responsibility and the unease of ambiguity and multiple meanings. ? 11 ? Cases are verbal representation of reality. Real business situations involve uncertainty and don’t present selected and sorted information. ? A case must have 3 characteristics: 1) a significant real world business issue or issues 2) Sufficient information on which to base conclusions 3) No stated conclusions 12 ? Many cases have these complicating properties: 1) Information that includes â€Å"Noise†- false, irrelevant†¦ testimony by characters in the case 2) Unstated information that must be inferred from the information that is stated 3) Nonlinear structure 13 ? A well-written case must have these characteristics. Reader of the case must be able to: 1) Construct conclusion from the information in the text 2) Filter out irrelevant portions of the text. 3) Furnish missing information through inferences. 4) Associate evidence from different parts of the case and integrate it into a conclusion. 14 ? Noise is a characteristic of real situations. Today, we are flooded in information, much of it of little value. Every case, whether it has a large amount of information or very little, requires the reader to make inferences. This can be the most difficult transition from textbooks and lectures. ? If memorization is the primary skill of the lecture model, inference is the primary skill of the case model. Furthermore, cases do not have a linear structure and are not presented in the most logical way. ? 15 ? There are 3 possible approaches to reading the case: 1) Receive it 2) Find it 3) Make it (appropriate for cases) ? â€Å"Receive it† states both subject and its significance (fits a text such as news story) â€Å"Find it† states keys and clues to find the solution (fits a text such as mystery novel) On the first reading of the case, it can seem to be a whole that is less than the sum of its parts. Indeed, the most basic matters of fact are not clearly stated or are stated in multiple ways. Students have to read a case actively (Active Reading) and construct their own meaning based on pedagogical objectives of the case and the theories and concepts already discussed in the class. 16 ? ? ? A case is a text that refuses to explain itself; hence, a meaning needs to be constructed for it. To analyze a case, the contextual factors concerning it must first be studied in order to allow a deeper understanding of the case (Situational analysis) Contextual information helps to limit and narrow the analysis of the case. Courses are often divided up into different modules or themes defined by certain types of situations and, often, concepts, theories, and practices appropriate for these situations. Students should learn how to make a case with relevant information based on the objectives of the case or questions already given by the instructor. 18 ? ? ? The method of analyzing a text is heuristic, meaning that important aspects of the situation in which the case is set must be identified and understood. This is a term used for self-guided learning that employs analysis to help draw conclusions about a situation. 19 ? Analysis has two closely related definitions: to break something up into its constituent parts; and to study the relationships of the parts to the whole. To analyze a case, you therefore need ways of identifying and understanding important aspects of a situation and what they mean to the overall situation. ? Thinking about a case must start before you begin making it. This way, the different questions arising about the case can be answered during the reading process. For example, the framework of a certain concept may guide a product launch decision. Hence, specialized methods are advantageous in achieving well-defined purposes. 20 21 22. 23 The following will provide a starting point for further understanding the different aspects of analyzing a case: ? There are four types of situations which appear repeatedly in case: †º Problems †º Decisions †º Evaluations †º Rules (complicated for beginners) 24 ? The definition of â€Å"problem† as a case situation is quite specific, unlike its other suggestions. Problem is a situation in which there is a significant outcome or performance, and there is no explicit explanation of the outcome or the performance. A problem in a case study is when the outcome or performance is significant yet there is no clear explanation of why it has happened. The causes of these outcomes are important to know so that the situation can be improved. ? 25 ? The outcomes of the cases may be negative. This is as a result of the fact that the change effort of the manager may be self-destructive. This result may arise from weaknesses that are unapparent. For efficient problem analysis, the problem first has to be defined. This is where success can come to be seen as a problem, in its own special meaning. ? ? Next, the problem must be explained by linking the outcome or performance to its root causes. Specialized methods of business disciplines are needed as tools to carry out this analysis. 26 ? Problem analysis begins with a definition of the problem. That seems obvious, yet many cases do not state a problem. As a result, you will first need to realize that a problem does exist. After this, you must define it yourself. Next, you must work out an explanation of the problem. This can be done by linking the outcome or performance to its root causes. This is the main work of problem analysis. To carry it out, you will need to employ the relevant tools, the specialized methods of business disciplines such as Strategy or SCM or operations management. 27 ? Would Barnes & Noble have benefited (or been hindered) by its physical organizational structure and management processes in its attempt to strengthen its position as an electronic commerce product/service provider? Defend your arguments. 28 ? Many cases complicate the decision immediately. Many of these are organized around an explicit decision. The decision, however, should not be based on other situations. The existence of an explicit decision is an important distinction, because nearly all business cases involve decision. In many other cases, however, the decisions are implicit and dependant on another situation. The decisions featured in various cases vary greatly in scope, consequence and available data. An executive must decide whether to launch a product, move a plant, pursue a merger, or provide financing for a planned expansion. ? 29 ? Analyzing a decision requires the following, regardless of the dimensions of a decision: †º Decision options †º Decision criteria †º Relevant evidence ? The decision options are often mentioned in the case itself. A stated decision needs to be followed by a statement of the alternative decision options. Finding these or coming up with them can be set as the first goal of the analysis. 30 ? In making a rational decision, the appropriate criteria need to be determined. By thoroughly studying the specifics of the case with the help of specialized methods, the criteria can be derived from the case, as they are not likely to be directly stated. The criteria are then used to develop evidence so as to complete a decision analysis. The decision must be the best option between the evidence and criteria available. In decision analysis, no decision is objectively correct. The goal is to find a decision that creates more benefits than the alternatives, as well as having less severe downsides. 31 ? ? â€Å"If we are to continue outsourcing, and even consider expanding it, why should we keep paying someone else to do what we can do for ourselves? † what are the stimuli behind such a statement to reflect on eBay customer support decision? 32 ? In an evaluation, a judgment is expressed about the worth, value, or effectiveness of a performance, act, or outcome. An outcome can be the subject of an assessment. The analysis of an evaluation can be based on any unit, from an individual to a global region. ? The outcome can be the subject of an assessment. The competitive position of a company, for instance, is the outcome of numerous decisions and performances as well as contingencies such as macroeconomic conditions. 33 ? Evaluations require appropriate criteria for setting the standards for assessing worth, value, or effectiveness. These criteria can be inferred from the particulars of a situation, with the aid of specialized methods. An overall evaluation will express the best option between the evidence and the criteria. Another requirement of an evaluation is that it includes both positive and negative aspects. Both strengths and weaknesses require analyzing. ? ? 34 ? 1. Is it justifiable for a company like Amazon. com to continue investing so much money and effort in a business operation that not only has made a profit for nearly 5 years but was incurring heavier losses? (Refer to the company’s financial statements) 35 ? The key to the analyzing process is active reading in order to make a case, as it is interrogative, purposeful, and iterative, meaning that you make multiple passes through a case and each time reading with various purposes. 37 ? Three factors contribute to active reading: a goal, a point of view, and a hypothesis. Goal of Analysis – Concrete limits must be set in order to derive the desirable information form the case. In addition, a time limit can be used to make the time spent on analyzing the case more productive. the main character. This way, making a decision as a person in that situation will help making conclusions easier. compare and contrast a concrete statement against case evidence. †º Point of View – It is effective to pout oneself in the place of †º Hypotheses – This gives the advantage of being able to 38 ? The process of working on a case has five phases: 1) Situation 2) Questions 3) Hypothesis 4) Proof and action 5) Alternatives 39 The analysis can first be structured as a series of questions and then identifying the situation by reading the first and last sections. The opening or end of a case may present partial or complete descriptions of the problem as well as expressing a tension or conflict vital to the analysis. 40 Knowing the situation allows you to ask questions pertinent to a problem, a decision, or an evaluation. Hence, the stages previously stated can develop the needed understanding to ask the questions in this second phase. Making a content inventory of the case, to locate information that might be used to answer the questions about the situation, can be useful. 41 †º Problem – Who or what is the subject of the problem? What is the problem? Am I trying to account for a failure, a success, or something more ambiguous? What is the significance of the problem to the subject? Who is responsible for the problem and what might he need to know to do something about it? †º Decision – What are the decision options? Do any seem particularly strong or weak? What is at stake of the decision? What are the possible criteria? What might the most important criteria be for this kind of decision? Are any of the criteria explicitly discussed in the case? †º Evaluation – Who or what is being evaluated? Who is responsible for the evaluation? What is at stake? What are the possible criteria? What might the possible criteria be for this sort of evaluation? Are any of the criteria explicitly discussed in the case? 42 ? Instructor may decide to provide situation guidelines and questions regarding the case study for students: 1) Situation 2) Questions 3) Hypothesis 4) Proof and action 5) Alternatives 43. This is the most important phase while working on the case. This involves narrowing the possibilities to the one that seems most plausible. There are different aspects to take into consideration, depending on if you are dealing with a problem, a decision, or an evaluation. Recording your thought process can help the development of this stage. 44 ? – Make sure you know the problem that needs to be diagnosed. Consider whether the characteristics of the problem suggest causes. – Think about the frameworks that seem most appropriate to the situation. Quickly review the specifics of the frameworks if you are not certain about them. – Pursue the diagnosis by looking at case information through the lens of the cause you are most certain about. – For each cause, make a separate pass through the case looking for evidence of it. – If the case has a lot of quantitative evidence, to what case is it most relevant? If you do not have a case relevant to the quantitative evidence, formulate one. Work up as much relevant, high-value quantitative evidence as you can. – In a case with a protagonist (central character), consider whether she is a potential cause. If you think she is, work out how she contributes to the problem. Problem 45 Energy = 2/3 consulting + all of technology service Industry = 1/3 consulting + all of certification 46 ? Decision – Review the criteria you have come up with so far. Which do you have the most confidence in? – Review the decision options. Do any seem especially strong or weak? – Apply the criteria that seem to identify the most evidence in the case. – Investigate the strongest decision option with the criterion you have the most confidence in. or, if you are reasonably certain about what which is the weakest, see if you can quickly dismiss that option. – If the case has a lot of quantitative evidence, which criterion is most relevant to it? If you do not have the criterion relevant to the quantitative evidence, formulate one. Work up as much relevant, high-value quantitative evidence as you can. – If there are conflicts about the decision between individuals or groups, think about why it is. Look at the decision from the point of view of each of the parties to the conflict. – If the protagonist is in a difficult position in relation to the decision, consider why that is. 47 48 49 ? Evaluation – Review the criteria you have come up with so far. Which do you have the most confidence in? – What are the terms of the evaluation going to be? Do any stand out in the case? – Do you already have a sense of the bottom-line evaluation you favor? If you do, what are the reasons for the preference? Pursue those reasons. – Start by applying the criterion that seems to identify the most evidence in the case. – Investigate the most positive range or the most negative with the criterion you have the most confidence in. – Investigate the most positive rating or the most negative with the criterion you have the most confidence in. – If the case has a lot of quantitative evidence, which criterion is most relevant to it? If you do not have a criterion relevant to the quantitative evidence, formulate one. Work up as much relevant, high-value, quantitative evidence as you can. 50 08 😕 ?†¢  «  » ( )? ?†¢  «  » ( )? ?†¢  «  » ( )? ?†¢  «  » ( )? 😕 ?15? A hypothesis drives a different approach to the case. You will start proving something you have already found out. Evidence supporting the hypothesis can be found in this stage. After this, the evidence can be assessed and a decision option can be drawn up, also finding the actionable content of the decision made. The last phase involves questioning your own hypothesis. This means reading your hypothesis and evidence with a critical eye. In this way, you can be the one who notices the weaknesses in the first place. †º †º Problem – Can the problem be defined differently? Would that make a difference to the diagnosis? Are there any holes in the diagnosis – could there be causes missing? What is the weakest part of the diagnosis? Could an entirely different diagnosis be made? What would it look like? Decision – What is the biggest downside of the recommended decision? How would you manage the downside? What is the strongest evidence against the recommendation? How would a case for the major alternative look? 55 †º Evaluation – Have you been objective and thorough ? If a hypothesis, after all these stages of analyzing and evaluation, fails, looking at alternative ideas can help to come up with another, stronger, hypothesis. This can be made into a useful learning experience for gaining more expertise. Such a case may arise if you perhaps overlooked important information or not used specialized tools effectively. about the evaluation findings that oppose your overall assessment? Think how a different overall evaluation might be proved. Have you accounted for factors that the subject of the evaluation could not control? 56 ? Potential for further discussion 57 ?†¢ 02 0102 ? Deepwater Horizon , 11 ? 71 . 3 002 ? ? .? ?85? ? The variables that influence the path and quality of a case discussion include the instructor, the students, the case, and a host of other possibilities such as the physical setting, the time of day, or the proximity to exams. The only variable that you can control is yourself. Case discussions are the most important part of Industrial Engineering and Business studies classrooms. This method encourages students to apply their learned theories and be able to contribute as part of a group to converse in a business matter. Therefore, skills to communicate and participate are very essential. 60 ? ? A case is a condition explained in which the students attribute with giving their own opinions about it, as well as listening to their peers. It is important for everyone in the case class to contribute in the discussion and comment on it. 61 ? Unfortunately there are some students who do not find it comfortable to participate in the class and feel threatened. This could be due to several reasons. ? The language used in the class might be different from their mother’s tongue and therefore give them the fear of making a mistake in front of their native speaker peers. They might have the fear that they do not have enough knowledge and background about business as others do, and therefore make themselves look silly by making a useless comment and several other reasons, which limits students from participating. Strategies have been used by instructors to overcome these kinds of fears. 62 ? ? Preparing comments and speeches are among the tactics used to overcome fears. Students prepare all their comments and what they want to say before the class and write them down, ready to be said. They will feel comfortable thinking they will have a valuable point to make. This is not always right. A discussion is not predictable, and the preparation might not work very well. The discussion might go into a totally different path in which the prepared points are irrelevant. On the other hand a flexible plan preparation can be helpful. It only causes problems when it is â€Å"over prepared†. ? 63 ? Another tactic is to enter the discussion with a delay, which is after listening to the peers and the professor and trying to make a comment relevant to theirs. This is not a very good way. In fact, it makes it harder to enter a discussion, thinking that only a perfect comment will give him the power to break into the discussion. Therefore the earlier the student starts participating, preferably from the first class, he will feel more comfortable. ? 64 ? Case method exposes risk which is shared by everyone. Risk isn’t purely negative; it is a motivator to do the hard work the case method requires. The most valuable advice about case discussion is to speak up early. Speaking up early not only reduces the nervousness of being in the spotlight It also assists you in setting realistic expectations for yourself. †º Setting a limit on your case preparation has several benefits: it puts a healthy pressure on students to use the time well; and it encourages students to pay attention to how you analyze a case. †º Read the case actively. Reading passively is one of the most important obstacles to efficient analysis. 65 ? In addition, students can try to get to know each other outside the classroom. This reduces their fear and strangeness towards each other. ? They can meet outside the classroom. This will definitely change the environment in the classroom. Building a social network is important to case discussion. Students surrounded by classmates who clearly respect them will probably be at least a little more willing to take risks in discussions. The often subtle but damaging influence of stereotypes about gender, personal appearance, and many other characteristics can be muted when people get to know each other as they are instead of what they are projected to be. A classroom friend can encourage a quiet student to speak up or to take bigger risks with his/her comments 66. Regardless of business seriousness, it is also  helpful to be funny at some points, and make others enjoy the class with a little humor. participation. However it should be accompanied by participating. It is important to listen to everyone carefully and contribute equally, and do not hesitate to talk whenever an idea pops in the mind. †º Listening is the most important factor of 67 †º Take a little time after class to think about the discussion before the memory of it fades away, you’ll capture more of the value of the classroom experience. The short-term benefit is greater clarity about the issues that link on case to another and lends coherence to a course. In long run, these takeaways become your personal bible for leadership. is the product of useful contributions over a period of time, not occasional bravura performance. †º You need to be patient. Effective collaboration 68 ? In conclusion, it is important to first analyze and discuss a case to develop one’s understanding of it. Afterwards, the knowledge gained can be employed to draw up the planning of the casebased essay. Finally, using the guidelines outlined, the different aspects of the case analyzed can be used to write up a well-researched essay. 69 ? Ellet W (2007) The Case Study Handbook: How to Read, Discuss, and Write Persuasively About Cases (Boston: Harvard Business School Press) ECCH Case Study Workshop 2010 ? 70 View as multi-pages TOPICS IN THIS DOCUMENT Scientific method, Casebook method, Case study, Qualitative research RELATED DOCUMENTS How to analyse case study †¦ How to analyse a case study Step 1: Get a general impression †¢ Which organisations and industries/sectors does it relate to? †¢ Is the organisation doing well or badly and how has it performed in the past? Is it an organisation that has an unbroken record of success or has it fallen on hard times? †¢ Look at the development of the organisation over time. What strategies has it pursued? Which have succeeded and which have failed? How successful has the†¦ 4076 Words | 3 Pages READ FULL DOCUMENT Case Study Guide Ukzn Westville South Africa †¦ UKNZN, SCHOOL OF MIG- DISCIPLINE OF MAKERTING AND SUPPLY CHAIN SCMA 305 2013 CASE STUDY GUIDE ANSWERING CASE STUDIES The following problems that have prevented companies to be successful are as follows: 1. The inability to recognize important problems; 2. Difficulty in formulating the main problem; 3. The inability to actually visualize or understand the situation; 4. The inability to communicate with other managers and†¦ 4076 Words | 7 Pages READ FULL DOCUMENT Case Study †¦ Introduction to Case Study by Winston Tellis+ The Qualitative Report, Volume 3, Number 2, July, 1997 (http://www. nova. edu/ssss/QR/QR3-2/tellis1. html) ——————————————————————————– Abstract This paper is the first of a series of three articles relating to a case study conducted at Fairfield University to assess aspects of the rapid introduction of Information Technology at†¦ 4076 Words | 20 Pages READ FULL DOCUMENT Case study †¦? Case Study Evaluation Protocol and Procedures Evaluation of the overall quality of each case study will be made on the following criteria: CASE STUDY PARTS CRITERIA Abstract Summary paragraph introducing the project, building, hypothesis, highlights of findings. concise brief of the parts to the case study. Introduction Description of building, background†¦ 4076 Words | 3 Pages READ FULL DOCUMENT MGMT591 Case Study Analysis †¦? Case Study Analysis: Building a Coalition Aldranon English II aldranon_englishii@yahoo. com MGMT591 ­_68800_20150301 Glenn Palmer March 22, 2015 Abstract This is an in-depth analysis of case study involving the Woodson Foundation. The analysis will evaluate the structure, environment (internal and external), strategy and implementation of tactics surrounding the program. This is only my interpretation of the program’s strengths†¦ 4076 Words | 6 Pages READ FULL DOCUMENT Case Analysis Study †¦ Case Study Analysis Paper Prepare a 1,400 to 1,750-word case study analysis paper based on the University of Phoenix Material, â€Å"Case Study for Student Analysis,† located in Week Two of the COMM/215 [pic] page. Below is a detailed description explaining how to prepare a case study analysis paper. ____________________________________________________________ _________________†¦ 4076 Words | 6 Pages READ FULL DOCUMENT How to Write a Case Study †¦ Write a Case Study Analysis By Karen Schweitzer, About. com Guide See More About: †¢ case studies †¢ case study analysis †¢ mba classes Ads Wetting Balance TestingSolderability Testing & Analysis Components -PWB- Assemblywww. standsgroup. com Requisite OrganizationFree research and information from the RO International Institute. www. requisite. org Novi Team BuildingIdealna zabava za†¦ 4076 Words | 4 Pages READ FULL DOCUMENT Case Study Writing Fromate †¦ Writing a case study report Josephine Hook, Research & Learning Coordinator Josephine. Hook@monash. edu (Source: www. office. microsoft. com) Outline ? What is a case study? ? Approaching a case study assignment ? The structure of a case study report ? Key elements of a case study report What is a case? A case might be: ? A†¦ 4076 Words |

Total Quality Management Techniques Essay Example | Topics and Well Written Essays - 1000 words

Total Quality Management Techniques - Essay Example The latter enhance the satisfaction of their clients through enhanced quality. This is realized through workforce empowerment and operational efficiencies. Since the contemporary customer is very discriminating in their choices, oganizations ought to offer what they expect or the organization will take the hit of losing share to competitors. 2) Describe the four challenges and four essentials in details, described in the article The first challenge of organizations is legislation in which companies are increasingly asked to comply with requirements on the environment, employee well-being and safety. In addition, Nagaprasad & Yogesha (2009) assert that numerous organizations stay complacent and expect sales to effortlessly come their way despite defective product or inefficient service. The authors share that this is likely to lead to their closure. Moreover, they say that companies must realize the existence of cut-throat competition, acknowledging that they are no longer a monopoly. The Four Esssentials espoused by Nagaprasad & Yogesha (2009) suggest that organizations should strive to eliminate their defects, and this implies a drastic decrease in the number of errors committed in their processes. Enterprises must also strive to increase productivity while containing their expenses. They must struggle to increase the bar of customer service – this is applicable to all organizations without exeption. To be authentically competitive, they must also adapt to the innovation requirements of competition. 3) Explain how TQM works and Benefits of TQM Programs Total Quality Management (TQM) is a method that seeks quality improvement which shall meet or exceed the expectations of customers (Murray, 2011). It is a philosophy that involves everyone in the organization in continuously improving quality, eventually resulting to customer satisfaction (Stevenson, 2007, p. 416). Total Quality Management Technique are are used to identify potential problems and ways to control them. Total Quality Management Techniques include Continuous Improvement, Competitive Benchmarking, Six Sigma, Lean Manufacturing, Lean Six Sigma, Total Productive Maintenance, and 5S of Housekeeping (World Class Manufacturing, 2011). Continuous improvement is a philosophy that seeks to make ceaseless improvements to processes in converting inputs to outputs. It covers man, machines, methods and materials. It became a cornerstone of the Japanese approach to production. Japanese use the term â€Å"kaizen† to refer to continuous improvement. The philosophy of â€Å"kaizen† is based on the following principles. First, waste is an enemy that needs to be ridden off; second, that improvement should also be done slowly and continuously; and that involvement of everyone in the company including the top managers is important. It does not require high costs on technology investment. It can be applied anywhere at any time and focuses on value creation. It likewise process oriented and lastly, its essence is learning while doing (Stevenson, 2007, p. 417). One problem that can be encountered in implementing this philosophy is the assurance of its continuity. People might lose the motivation to continuously improve their processes (Kotelnikov, n.d.). Competitive benchmarking involves identifying and studying other organizations that are the best. It includes studying their operations and

Smith Systems Consulting Essay Example | Topics and Well Written Essays - 250 words

Smith Systems Consulting - Essay Example e there is an inevitable need to have a reliable password security system that encompasses the properties of both safety and simplicity in the most balanced manner. At smith Systems Consulting, we have been in the business of offering lasting solutions to business information through installation of security passwords that are hard to hack. The proposal we are offering to incorporate in your company uses the most recent art of technology to ensure that only responsible people are allowed to company information. For simplicity and unification, we propose to install touch-screen password system that allows access via approval by at least two company signatories. The number can though be varied to suit the convenience of operation yet still not compromising the safety aspect. With the increasing worth of Riordan Manufacturing, this system guarantees safety and accountability into accessing company information. The additional material needed to implement the system are few as it uses most of the already in use items within the company. This lowers both cost of installation and maintenance. The touch-technology simplifies the system making it the most effective user-friendly password security system which can be unified easily to close all the loopholes that might be used by

The Single European Market Essay Example | Topics and Well Written Essays - 750 words

The Single European Market - Essay Example The Single European Market While it can be argued that the single market was basically completed in 1992 following the enactment of various policies in place, much of the project is yet to be completed. Indeed, with the present challenges realized in the process, it is becoming more impossible to complete the Single European Market (Crouch, 2010). Efforts to realize the European single market continue to face a lot of challenges. Language barriers amongst the member countries continue to present a lot of challenges to the realization of a single unified market. Moreover, it is realized that different countries in Europe have varying levels of economic development and this presents a challenge to a single market creation. In this regard, different countries have different economic objectives hence the realization of a single market might not really become practical and unacceptable to all the member countries. The member countries of the EU are always in economic competition against each other. In this regard, these countries are at times forced to follow their own national visions and interests which totally go against the spirit of the realization of a single market. The national interests of the countries appear to be more important than the good of the EU. The directives of the EU toward the achievement of the single market are often interpreted to be blatant instructions on what should be done. As such, countries such as Britain have always ignored much of these instructions and adopted their own versions of economic development. For instance, it is much difficult for British companies to effectively compete with other companies from countries with lesser demands. The differences in populations have a lot of implications on the supply and demand for various goods and services in the region. A single market in this regard would put some companies at a disadvantage against others. Many of the EU’s member countries have sought various derogations from some aspects of the single m arket or restricted many of the reforms proposed. Moreover, the different consumption and stake in the oil industry affects the operations of the single market. In this regard, France with its huge stake in the oil industry has led to the removal of energy from the products in the European single market. While most of the member states of the EU follow different educational and professional standards, the mutual recognition of these qualifications in the region is always a challenge since some countries regard their standards as far much better than others. The operations and success of a single market requires a uniform sense of both monetary and fiscal policies across the region. In this regard, the adoption of a single currency was certainly a good direction towards this realization. However, given that some countries like the UK have not yet adopted the single currency, pure economic integration of the region becomes a great challenge. Such integration is certainly a prerequisit e toward the realization of a Single European Market. Of great challenge to the European single market is the enlargement of the EU. With a membership of 27 states, the region might face a lot of migration of workers from the poorest countries in Europe to some of the richest countries (Vickerman, 2002). In this regard, it was seen that such migrations would drastically affect the wage rates

HEA 409 Business Plan Essay Example | Topics and Well Written Essays - 500 words

HEA 409 Business Plan - Essay Example The other section is financial projections. On the basis of a healthcare organization, the following is a description of service description section and the financial projections. The healthcare organization that is to be formed, HealthCo Organization will provide premier healthcare services especially to home-based care patients. In addition, HealthCo Organization will also be involved in providing skilled and effective nursing services, social work, as well as different forms of therapies (Walshe & Smith, 2011). Amongst the therapies that will be provided by HealthCo Organization include speech, physical, and occupational therapy. The surrounding community is known to be workaholics and would not have adequate time to relax and have adequate physical exercises. In addition, the community is made of many old people that require adequate physical therapies to boost their health. As a result, HealthCo Organization will be involved in extensive home-based health care besides offering the aforementioned forms of therapies in order to enhance the health of the community. HealthCo Organization will also provide other services that include injury case management especially in respect to games and fire (Thomas, 2003). The injury case management that HealthCo Organization will provide involves an intensive program and awareness on the cases of various forms of injuries. Moreover, HealthCo Organization will also be involved in providing adequate and effective assessment of the injuries sustained, planning on how to solve the injuries, providing adequate understanding of how to care for such injuries, and ensuring that the injuries are not only treated but also cared for adequately (Walshe & Smith, 2011). Lastly, there will be professional services in respect to general health and the environment for any community

Public Economics Essay Example | Topics and Well Written Essays - 1250 words

Public Economics - Essay Example (a) According to Segura and Braun (2004, p.34), â€Å"a club good is a particular case of public good, which has the characteristics of excludability and non-rivalry (or partial non-rivalry, depending on the congestion).† It could never be a pure public good nor pure private good because it has the characteristic of least partly ‘rivalrousness’ and ‘excludability.’ Therefore, the usage of this good is exclusive for the club members (voluntary) and not for the good of the public, because if a good is already consumed by one of the members, the others will lose the opportunity, and the benefits are kept away from non-members (Murshed, 2010, p.153). The non-members are not allowed to assess, join and cooperate in the group because club members’ priority is to gain maximum utility over the certain goods. In other words, club goods are not public goods but they are a ‘quasi-public’ or partial public goods, for they are only made availab le to two or more individuals, and restricted or protected from the outsiders consumption or non-members that did not contribute to the club’s creation (Brummer, 2008). ... See for instance, a single individual will not have the capacity and the resources to build a club on its own, because it will shoulder the cost of the construction as well as the maintenance. Also, even if he did, the enjoyment will be more appreciated if it is shared to two or more people as long as the number of members did not detract the enjoyment of the other group members. A theory of club goods is â€Å"intrinsically bound up with issues of inclusion and exclusion, and hence, how members are selected and non-members excluded. This implies some notion of discrimination† (Crawford, 2006, p.121). â€Å"The important point here is that many government services are closer to the characteristics of club goods (or at least they are impure public goods) compared to pure public goods, particularly at the local level† (Murshed & Tadjoeddin, 2008, p.7). One of these services is higher education or universities which can be seen as a club good particularly the rising of the student tuition fees (Sandler & Tschirhart, 1997, p.336). Education itself is a club good because whose benefits are non-rival and non-excludable, thus it can be shared without detracting the availability of opportunity to other individuals. However, because of the rising student tuition fees poorer students would not be able to obtain the offered benefits of higher education, although it gives access to disadvantage students (Kershaw, 2010). This education that based on financial and not on academic ability is some kind of a restriction in the entry of poor bright students in an elite institutions or this can be considered discrimination. Withdrawal of the public funding would only make

American Literature before the Civil War Essay Example | Topics and Well Written Essays - 1000 words

American Literature before the Civil War - Essay Example From the start, however, the New England’s literature was also directed to the learning and instruction of the colonists themselves, planned to direct them in the godly ways (Hodge, 1907). The first work available in the Puritan colonies was the Bay Psalm Book which was done in 1640, and the whole attempt of the divines who wrote heatedly to set forward their views among them was Roger Williams along with Thomas Hooker. This was to defend and encourage visions of the religious state. They set out their dreams in effect the primary formulation of the idea of national fortune in a sequence of emotional histories from Edward Johnsons Wonder-Working Providence to the epic of Cotton Mather Magnalia Christi Americana. Puritan poetry was also offered consistently to the service of God. Michael Wigglesworths Day of Doom (1662) was candidly theological, as well as Anne Bradstreets poems, issued as The Tenth Muse Lately Sprung up in America (1650), reflected her own piety (White and Rowlandson, 2009). The best of the Puritan poets, Edward Taylor, whose effort was not available until two centuries following his death, wrote metaphysical rhyme worthy of contrast with that of the English poet George Herbert. American historical literature, in a sense, is a literary face of the pious optimism of the Puritan request. The Puritans had the vision of living under an ideal order and worked with trust as well as courage to building a fresh Garden of Eden (White and Rowlandson, 2009). They therefore tended to view everything with a big quantity of optimism. The Puritans metaphorical style of insight brought American literary symbolism into form. To the devout Puritans, the material world was spiritual, nothing but a sign of God. The world, consequently, was one of numerous meanings. The Puritan style of writing is typically by simplicity. The Puritans have been detested for their severity and

Whether the UK combined code on effective board structure add value to Essay

Whether the UK combined code on effective board structure add value to financial performance in the uk banks - Essay Example This is give me good chance to pass, thanks) (THE AREAS THAT ARE COVERED THROUGH THIS QUESTION ARE DISCUSSED IN THE â€Å"THE PURPOSE OF THE DISSERTATION† and THE QUESTION IS ANSWERED IN THE CONCLUSION) On the basis of the main purposes that resulted in the banking crises in the UK, this report examines if the UK combine Code has proven to be valuable in terms of accelerating the financial performance of the UK banks. However, investors expect a lot more from the financial institutions including banks of the United States of America. This report is aimed to review two companies as criteria, in the United Kingdom corporate governance, on board structure and if the United Kingdom combined code is effective on the financial performance. The dissertation clearly identifies the weaknesses, strengths, current performances and failures of the banking industry of the UK. The collapse of the banking sector of the United Kingdom was followed by the bankruptcy of the Lehman Brothers, the largest banking institutions in the United States of America. Since then, the UK went in to deep recession, which was considered to be the worst by many economists. In the corporate governance sector, the United Kingdom is considered as the world leader (Shah, 2009). The most important factor behind the collapse of banks in the United Kingdom is the ineffective and inefficient progress of the board members. This investigation is aimed to review and analyze the major issues and factors that took part in the failure of the banking and financial institutions, more specifically, RBS and HSBC. These banks are compared and examined deeply, aiming to discover out if the entities act in accordance with the combined code generated good financial results. The rigidity of the financial sector provides no room for abidance (Berndtson, 2009).  The business and management corporate entities, at earlier, were governed in harmony only with the

Food and migration Essay Example | Topics and Well Written Essays - 1000 words

Food and migration - Essay Example This dish is however incomplete without the addition of the chief ingredient – gochujang. Gochujang is a spicy fermented Korean seasoning, which when translated means ‘hot pepper paste’ or ‘red pepper paste’. It is the main ingredient in most spicy Korean food. It has the consistency of a thick jelly and the flavor is a unique mix of savory, spicy and sweet. In fact, gochujang is one ingredient you will find in any Korean family’s pantry. Gochujang was first made in Korea, in the latter part of the 18th century (Annie Chun’s). The preparation of gochujang followed the introduction of chili in the country from Japan, which began to be popularly cultivated during the 16th century (Annie Chun’s). According to folk tales, the Korean king of Joseon Dynasty once stopped for a meal at a farmer’s house. There he was served barley and rice mixed with gochujang. The king liked the food so much that he ordered the farmer to supply gochujang to his royal court frequently. It is from this point onwards that Traditionally, Koreans have been known to make gochujang at home by adding powdered red chili peppers and a grain (typically rice, sweet rice or barley) to a fermented soybean paste (Kracklauer). This mixture is then placed in large earthen jars and kept in the sun to be naturally fermented for months. During this process, the proteins break down into amino acids and the starch hydrolyses into sugars. However, in recent years, most families prefer buying it from the Korean grocery store because of the time it takes to make it. Over the years, the popularity of gochujang has increased so much, that there is a definite market for ‘Americanized’ gochujang. One can even see it served with a course of bibimbap on KLM, Air Canada and Cathay Pacific flights (Huster). In fact Annie Chun’s distribution market in collaboration with the South Korean CJ Cheiljedang Corporation, the number one gochujang supplier

Chicken parm sub Essay Example for Free

Chicken parm sub Essay Chicken parm is the best sub on the planet earth. I used to eat it when I was little my mom used to make for me every Sunday. I used to have it with Pepsi. When we were done we used to go on a bike rides. Me and my family dont do the bike riding any more. When we ate it we say funny old storys about are family. When my friends come over I ate with them but the storys got embarrassing. This is what I like to do when I eat chicken parm. Chicken parmigiana (also referred to as a parmi[1] or parma[2]) is a chicken dish based on the Italian Parmigiana, and is regularly served in Australian pubs.[3] The meal consists of a breaded chicken breast, or chicken schnitzel, covered with a tomato-based neapolitan sauce and cheese. Variations include the addition of a slice of ham or bacon.[4] The dish is typically served with a side of potato chips and salad, although there is some dispute as to whether the chips should be served under or next to the chicken.[5] Size is considered to be a major part of the chicken parmigiana,[5] and increased competition has led to a greater focus on the size of the meal.[3][6] Some restaurants hold competitions with prizes for people who successfully finish a large chicken parmigiana, such as the Parmageddon which was held in an Adelaide Hills pub.[7] The popularity of the chicken parmigiana led to a specialised chicken parmigiana restaurant opening in Melbourne,[5] and the chicken parmigiana is the subject of reviews on dedicated websites which compare the dish as purchased from various pubs within a region.[2][1][5][8] Other meals have also taken on the chicken parmigiana theme, including pies and Subway sandwiches.[9][10] This dish was adopted by the Australians it is originally from Italy. In Italy it was served with pasta, and sometimes garlic bread

Marketing Plan For Cadbury Marketing Essay

Marketing Plan For Cadbury Marketing Essay Cadbury is the icon of the British confectionary industry, with a heritage which dates back to 1824. Since then, Cadbury has expanded its business throughout the world, through both organic and acquisition led growth. Today Cadbury is a leading global confectionery company, operating in over 60 countries. Cadbury has an outstanding portfolio of Chocolate, Gum and Candy brands. In 2008, Cadbury enjoyed a 10.5% market share of the global confectionery market, with revenue of GBP5.4 billion. The company employs about 50,000 people and work with around 35,000 direct and indirect suppliers globally. Cadbury manufactures markets and sells unique brands which give pleasure to millions of people around the world every day. Cadburys Vision is to be the biggest and best confectionary company in the world. One of Cadburys Strategic goals for 2009 to 2011 is to increase market share of the global confectionery market, with revenue growths of 4% to 6% annually. Cadbury believes that the confectionery business still has significant unused potential. By exploiting the strengths of its innovative products/brands, it believes it can continue to grow its market share and returns, and achieve its Vision of becoming the biggest and best confectionery company in the world. Vision The Vision into action (VIA) plan embodies all aspects of our strategy. Our governing objective is to deliver superior shareowner returns by realizing our vision to be the worlds biggest and best confectionery company. Cadburys Philosophy Cadburys philosophy of Vision into Action (VIA), a strategic plan for 2008 to 2011 is an example of how business strategy is translated to a Marketing plan to deliver positive impact to its revenue and margin performance. Cadburys growth ambition is based on the following:- Strengths of its brands and market position Increased investment in Innovation, Marketing Sales Greater exposure to faster growing categories (e.g. gum) and markets (e.g. emerging markets) 1.2 Product, Market Operational Characteristics Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. Cadbury created few famous brands like Cadbury, Trident and Halls. Flakes Green Blacks Halls Hollywood Stimorol Eclairs Cadbury featured brands are: Cadbury featured brand: Bubbaloo Cadbury Crà ¨me Egg Cadbury Dairy Milk Clorets Dentyne Born in 1824 when John Cadbury opened a shop in Birmingham selling cocoa and chocolate. Since then Cadbury have expanded their business throughout the world by a program of organic and acquisition led growth. On 7 May 2008, the separation of the confectionery and Americas Beverages businesses was completed creating Cadbury plc with a vision to be the worlds BIGGEST and BEST confectionery company. Cadbury operates in over 60 countries and worked with around 35,000 direct and indirect suppliers. Cadbury have employ around 50,000 employees all over the world. Cadbury plc  is managed by the Cadbury plc Board of Directors which delegates day-to-day management to the Chief Executives Committee (CEC). Cadbury business is segmented to four main regions and they are:- America Britain, Ireland, Middle East and Africa Europe Asia Pacific Cadburys Values Cadbury team is performance driven, values led. Throughout changing times, our constant values have inspired us to be pioneers in business and in corporate responsibility. They help ensure we are proud of our company and are critical to our core purpose of creating brands people love. Cadburys values are: Performance, Quality, Respect, Integrity and Responsibility to social, economic and the environment Our Business Principles  are our code of conduct and also take account of global and local cultural and legal standards. They confirm our commitment to the highest standards of ethics and business conduct. 02. Task One 2.1 Marketing Planning Principals Analysis of the Market Being in the confectionery business and dealing with consumers, Cadbury has always been a market and consumer focused organization. It consistently conducts market studies to determine the positioning of its brands, in current, new and future markets. This forms the foundation of the Marketing Plan. Setting the Marketing Objectives In order to deliver growth, Cadbury conducts many marketing programs for its brands every year. Each marketing program is accompanied with a Marketing Plan. Each marketing plan has clearly defined objectives for the project team to deliver. Establishing the Strategies Tactics Based on the market analysis and set objectives, each Marketing Plan will contain strategies and tactics which will be necessary in delivering the desired outcome. Developing an Action Plan This is one of Cadburys key philosophies, making things happen. Therefore, every Marketing Plan in Cadbury has specific actions to be implemented by a person responsible, and within set time targets. Monitoring of Progress In Cadbury, every Marketing Plan is monitored monthly by the Senior Management Team of the respective SBU, to track the progress of the plan, as well as to make any necessary improvements or changes. Resource Financial Management Once a marketing program has been approved by the Senior Management Team of Cadbury, the necessary resources will be provided in order to deliver the objectives set in the Marketing Plan. As in the case of providing the necessary resources, Cadbury also provides an appropriate financial budget for the project to deliver the objectives set in the Marketing Plan. Measuring Success Cadbury continuously measures the success of each of its marketing projects, and compares the results achieved vs. the objectives set in the Marketing Plan. 2.2 Marketing Audit / Situational Analysis 2.2.1 Market Environment Conducts a complete external marketing audit which includes both the macro and micro environment of the confectionary industry and how these may have an impact on Cadburys Chocolate, Gum and Candy businesses. From this audit, the company will be able to identify the key issues impacting each business, and how the business can develop an effective plan with tactics and strategies to tackle these issues and ultimately achieve the Marketing Objectives. 2.2.1.2 Macro Environment Macro factors are factors that we totally have no or extremely little control off. It is not just looking at a segment of the industry, but the effects these factors have on the whole industry. An example of an audit tool is the PESTEL analysis, which identifies the opportunities and threats of the external environment, which then helps the Company to develop appropriate plans. Political Being in a confectionary industry, political factors have little impact on Cadburys business as chocolates, gums and candies are well established consumer products, and available everywhere. There are no political factors which restricts consumers from purchasing these products. However, in Singapore, the Government has banned the sale of gum, as it is seen as a nuisance to the environment. Therefore, in the UK, Cadburys businesses have no impact politically. Economic The state of the economy has an impact to most businesses. The credit crunch and slow down of economic growth, as we are currently experiencing, does effect consumer buying power, and hence Cadburys businesses. However, the reduction in interest rates does help consumers, as it creates consumer spending, and hence Cadburys businesses may have minimal impact. Social In terms of social factors, there are many consumer groups which voices their own opinions and sometimes this have a major impact on regulations and legislations. Consumer businesses are highly impacted by social factors. As an example, Cadburys chocolate business may be impacted by health reasons, such as sugar and obesity, which will influence the sugar and ingredient content of its product, and ultimately the formulation and taste. The introduction of sugar free gums and dark chocolates are good examples of how the gum and chocolate industry has evolved over the past 2 decades. Technological The increase use of internet has impacted businesses worldwide. Consumers are more aware of product offerings, have greater access to information and knowledge about products and can make more educated choices of products. The internet has also brought consumers closer to companies such as Cadbury, who now have faster feedback from consumers about their products. All of this has both positive and negative impact to Cadburys businesses. Advancement in manufacturing technology has also influenced the confectionery industry in terms of cost of production, shapes, sizes, packaging etc. All of these do affect Cadburys businesses in many ways. Environmental As the world experiences greater environmental challenges, such as global warming, environmental legislations do impact Cadburys manufacturing, product and packaging. As a responsible company, Cadbury practices a zero discharge to the environment, which increases the companys manufacturing costs. It also uses bio-degradable packaging material, which is a requirement in the EU. Legal The confectionery industry is a highly regulated industry. In each country, as in the UK, it is governed by legislations and monitored by the Food and Drug authorities. Influences from Environmental and Social groups, may introduce changes in legislations, which in turn impacts the confectionery business. As an example, the use of artificial colors, additives deemed to increase hyperactivity in children, has forced Cadbury and other confectionery companies to find alternatives, at higher costs. The increasing manufacturing standards for food products have also impacted Cadburys businesses. Tighter standards means higher costs to manufacturers. Whilst this is good for society, it has a negative impact to Cadburys businesses. 2.2.1.2 Micro Environment Analysis of the micro environment is equally important. These are the issues relating specifically within the organization and it is crucial that we clearly understand this in order to plan and develop the marketing plan. There are 6 factors and we use a simple tool SPICC Supplier The Supplier is important to any business, as they can either support or destroy value. In the case of Cadbury, due to its economy of scale, and long standing partnerships with suppliers, it is able to obtain good support from its suppliers. This provides Cadbury with the necessary competitive advantage it requires. Public In general the consumer and public at large tend to support a well established and responsible company such as Cadbury. However, there will always be minority groups who voice their concerns about products and companies, and these have to be handled with sensitivity. Intermediaries The retailers and stores tend to have less power to negotiate when it is dealing with a company as big and well known as Cadbury. Every store wants to have the Cadbury brands on their shelves and would tend to agree with terms offered by Cadbury due to the pull of consumers this brand brings to their shop. Customers Customers do play a big part on the success of a company or its brands. As there are many choices in the market, the customer determines the value of a brand. 2.2.2 Industry Analysis Porters Five Forces is very useful in this analysis; Treat of Substitutes Bargaining power of Buyer Rivalry Bargaining power of Supplier Threat of new Entrants Each of Porter Five Forces model contributes to the competitive environment in an industry: Threat of new Entrants With the confectionery industry showing good growth potential, new players may enter the market to get a small market share of a very large industry. However, due to high entry barriers, such as establishing a renowned Brand, as well as high manufacturing standards, the threat of new entrants remains low for the confectionery industry. Threat of Substitutes With new entrants in the market, a group of existing or new competitor may introduce new products/brands, for the chocolate sector, claiming the same consumer satisfaction, but at lower costs, e.g. Ice-creams, puddings which claim to be cheaper and healthier. The threat of substitutes is moderately high for the chocolate sector. Bargaining power of Suppliers As a long established player in the confectionery industry, Cadbury has the economics of scale to bargain for low cost raw materials. It works with the best suppliers in the world in order to ensure consistent quality and low cost materials. Therefore, the bargaining power of Cadburys suppliers is relatively low. Bargaining Power of Buyers In todays world consumers have many choices, due to the intense rivalry in the confectionery industry. However, Cadbury has a number of established brands which command a relatively stronger pull, hence the bargaining power of buyers (eg wholesalers and supermarkets, B2B) is low but the bargaining power of the consumer is moderately high. (B2C) Rivalry among Existing firms The confectionery industry is a crowded, with many players. Some are well established players, such as Nestle and Mars, who have equally strong brands as Cadburys. Some have carved out sectors, e.g. in-house brands of Tesco, Marks Spenser and Sainsbury. There are also many small players who have good positions in small sectors of the industry. Hence the rivalry among existing players is moderately high. However, Cadburys well established brands do provide some level of edge in the industry. 2.2.3 SWOT Analysis There are factors within a company which affect the internal environment and these should be addressed. Being a global leader in the chocolate business, the product, Brand and Corporate image, service, value of the product and quality is inseparable. Therefore an audit of the internal environment is also important. The SWOT analysis is a useful method in determining the key issues of a company, and will the company to develop a plan to mitigate threats and focus on opportunities. SWOT analysis of Cadbury Strengths Well established company since 1824 Global brands and innovative products One of the top 4 leading confectionery companies in the world Only focuses on confectionary products. Products available in almost all distribution Channels. Financially strong, with continued revenue And profit growth annually. Weaknesses Too many products and brands Highly dependent on confectionery market High cost base when compared to some Smaller confectionery companies. Relatively small presence in emerging Markets. Opportunities Entry into new markets (e.g. India China) with its established Brands. Ability to introduce new product extensions in existing markets using its established Brands Acquisitions of other confectionery companies. Threats New legislations and regulations which may increase costs Social impact from consumer groups on health related issues New entrants into the confectionery industry Products could be easily copied by competitors (carbon copy) 2.2.4 Value Chain Analysis Support Activities Firm Infrastructure Formation: Includes general management, planning management, finance, legal, accounting, quality management, public affairs, etc . Human Resource Management Personal activities: All activities that links with recruiting, development (training, education), retention and compensation of employees, manager, etc . Technology Development R D, etc : Include the technology development to support the value chain activities, i.e., Process automation, Research Development, design and redesign, etc. Procurement Purchasing inputs: The role of purchasing inputs i.e., procurement of raw materials, machines, spare parts, servicing, buildings, etc . Primary Activities Inbound Logistics Receiving inputs : Activities that associates with receiving, storing, transportation scheduling, inventory control Operations Building the product/ providing the service : Includes packaging, assembly, machining, maintenance, testing, activities that transform the final input into final product Outbound Logistics Distributing the product to buyers : Activities that involved the finished product to get to the customers; warehouse, orders, transportation, distribution, etc Marketing Sales Pre-sale support : Activities associated with getting buyers to purchase the product including channel selection, promotion, advertising selling, pricing, retail management, etc Customer Service Post-sale support : the activities that maintain enhance the products value, including customer support, repair services, installation, training, spare parts management, upgrading, etc Task 02 3.1 Marketing Objectives As the business still has significant untapped potential both in terms of top line growth and returns. By exploiting the strength of our leadership positions to continue to grow their market share and significantly increase the margins and returns, cadbury aim to achieve their vision of becoming the biggest and best confectionery company in the world. Vision into Action (VIA) plan for 2008 to 2011 aligns the energies and efforts of the teams around the world behind a number of priorities which will make the most impact on our revenue and margin performance. In order to generate superior returns for our shareowners, our VIA will deliver six financial targets. These are set out in our financial performance scorecard below: Organic revenue growth of 4% 6% every year Total confectionery share gain Mid-teens trading margins by 2011 Strong dividend growth An efficient balance sheet Growth in Return on Invested Capital (ROIC) To achieve these financial goals, have a growth and efficiency strategy which aligns behind our focus on fewer, faster, bigger and better. This focus is being applied to all aspects of our business. Corporate objective: Achieve sales of min. GBP25 Mil in 2009 UK Market Achieve sales of GBP80Mil in 20011, UK Market Functional objective: To increase 6% by end 2009 Operational objective: Achieve min of 80% consumer awareness of CCE Twisted within 12 months of launch Marketing Products, price, place promo, people, process, physical evidence Director Or CEO 3.2 Strategy The strategy for any marketing project is the key to the success of the project. It should map out what needs to be done, targeting which consumers, and providing them with what value, through the product offered. 3.2.1 Segmentation of Market Cadbury segments the UK Chocolate market based on Geography, Demographics and Psychographics to identify the target market segments for their Cadbury Cream Egg Twisted. Geography Cadbury geographically segments the UK chocolate market by:- Urban market (Cities) e.g. London, Glasgow, Cardiff, Manchester, etc Suburb markets (Towns) e.g. Barnstable, Abingdon, Stamford Others (Villages) e.g. Sawston The company identifies the size of the chocolate market, per capita consumption, growth trends, as well as analyses each segment in terms of Cadburys market share, Cream Egg lovers and chocolate bar consumption. This will provide Cadbury the necessary information to target the right market for Cadbury Cream Egg Twisted. Demographic Demographic segmentation allows Cadbury to understand the chocolate market by age, gender, income group, etc. This allows Cadbury to identify which groups are the chocolate lovers, which group prefers Cream Eggs, which group prefers bar chocolates, etc. Psychographic Psychographic segmentation is based on consumer lifestyle, attitudes and motives. Cadbury segments the UK chocolate market, based on consumers who prefer branded goods, those who prefer taste, texture or shapes. By doing this, the company is able to identify the target segment which will best suit the Cadbury Cream Egg Twisted product. 3.2.2 Targeting the market After establishing the market segmentation, the next step is to evaluate each segment and choose which possible segments should the company target and offer Cadbury Cream Egg Twisted in order to meet its marketing objectives. Based on the segmentation analysis, Cadbury is targeting the following groups:- All locations around UK, with greater focus on urban markets. Across all channels, especially super and hyper markets, and convenient stores, where the chocolate consumption per capita is high. Children, teenagers and females, who are seen to be lovers of Cadbury Chocolate bar lovers, the group which Cadbury is hoping to switch from traditional bars to the Cadbury 3.2.3 Positioning Cadbury Cadbury is having broader ranges targeting many segments. Youth segment should position as Love and entertainment. Teenagers can attract through adventure aspiration. Childrens mind goes to various tastes and small gifts they are getting. Therefore should do the positioning accordingly. 3.2.4 BCG Matrix The BCG or Boston Consulting Matrix is a tool used to analyze the portfolio of a company. It classifies business units or product ranges into four categories based on a matrix of market growth rate and market share position. The market growth rate determines the attractiveness of the industry and the relative market share shows the competitive position of the business. Below is the BCG Matrix. Details about the 4 categories are as follows:- Cash Cows business units that have large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be used to invest in other business units. Stars- business units that have large market shares in a fast growing industries stars may generate cash, but because the market is growing rapidly they require investment to maintain their lead. If successful, a star will become a cash cow when its industry matures. Question Marks business units that have small market shares in high growth markets. These business units require resources to grow market share, but whether they will succeed and become stars is unknown. Dogs business units that have small market shares in mature industries. A dog may not require substantial cash but it ties up capital that could better be deployed elsewhere. Unless a dog has some other strategic purpose it should be liquidated if it has little prospect for it to gain market share. In summary, the BCG matrix provides a framework for allocating resources among business units within a company, and it will be useful for us to review the portfolio of our Chocolate Business. 3.3 Marketing Mix The marketing mix is a combination of critical factors that make up the marketing strategy for a product, which helps the company to successfully achieve the set marketing objectives. 3.3.1 Product Cadbury UK emphasizes on the need for strong brand image, and therefore all the decisions they make with regards to its products are in line with the brand image. The product and packaging are designed to project and communicate the brand image reflecting Cadbury as who they are. The product reflects the innovation, high quality and nutritional value it provides to its customers, whilst the packaging clearly reflects the familiar purple corporate brand color and corporate brand logo, associated with reliability and quality. Cadbury maintains the original Cream features and taste, which is a well loved product. Uses no artificial colorants or banned additives, and meets all EU food standards. Product is in a twisted bar form to attract chocolate bar lovers. Personality of the Brand is fun and novel to target the young trendy and female market segment. Specially lovers Packaging is colorful, to attract the children, teenage and young adult market. 3.3.2 Price Pricing of products is key in reflecting the image of a brand. This is why Cadbury carefully considers the image of the product, the value it offers to the consumer and who is the target consumer, before it determines the price of any of its products. It is obvious that different Cadbury products, targeted at different segments of the market are priced differently. The decision on pricing does have an impact to the brand. For example Cadbury offers its bar chocolates at a premium price compared to Tescos or Sainsbury bar chocolates, for the mass market. Cadbury also sells some of its high end products to reflect a luxury image, and can command good premiums, example Cadbury Milk Tray, Cadbury Roses and Green Blacks. The price of a product is also dependent on customers perception of the brand which Cadbury takes into account before it prices its products. However, with the current economic scenario, Cadbury gives special deals, for example Cadbury Dairy Milk bars 20% more (means big ger size) at the same selling price without reducing the price and affecting the brand image. Cadbury priced to competitive price GBP per gram it is cheaper than the Cream, which allows differentiation. 3.3.3 Placement Cadbury chooses carefully the distribution channels it places its products based on the brand image of the products. For example for its Cadbury Dairy Milk bar range of products, because it is targeted to the mass consumer, this range of products are accessible across all channels, in all super and hypermarkets, chain retail outlets, other convenience stores and even in the mom and pop shops. For the premium products, eg Green Blacks brand, Cadbury carefully places them at high end outlet, such as Selfridges and Airports. Cadbury will be available across all distribution channels in the UK market. Focus will be in Hyper and Supermarkets as well as convenient stores, at prominent locations within the stores. Greater visibility will be provided at urban segments (both cities and towns). 3.3.4 Promotion Depending on the brand image, the target consumer and market, Cadbury carefully chooses its communication strategy to meet the objectives of increasing awareness and ultimately pulling the consumer to purchase its products. Every promotional activity has its own strategy and this can can vary from increasing brand awareness, maintaining the brand value, educate consumers about a new product, increasing seasonal purchases, or campaigns such as choose Cadbury to highlight the positive emotional value of the brand. However, due to the current economic downturn, Cadbury carefully selects its promotional activities; such that it has maximum returns for its promotional spend. With the advent of the electronic media, Cadbury has created a number of websites for its popular brands for consumer/members to be active. These websites have education information, games, good associates such as purple goes green, cocoa partnership and fair-trade. Cadbury has recently agreed to partnership with the 2012 Olympic, which will give its brands, global recognition. Websites are www.cadbury.co.uk, www.cadburycremeegg.co.uk. www.aglassandahalffullproduction.com, etc. Above the line promotion via TV, Radio and print media. Advertising will focus on target groups, e.g. children, teenagers, young adults and females. Below the line activities will be carried out at urban markets at high traffic outlets, such as Hyper and Supermarket concourses. Special standees will be appropriately designed to portray the fun and novel personality of the product, and placed in major outlets. Task 03 4.1 Key Issues faced by Cadbury and Implications to the Marketing Plan Key Issues Implication to the Marketing Plan The economic slowdown and credit crunch Possibility that the market will shrink Competition will be intensive driving prices to be more competitive. Pressure from consumer groups on health related issues Need to have more PR with consumer groups Need to educate consumers on ingredients used in products Higher legislations and standards for industry To support this in order to create higher barriers to entry for new entrants into the industry Too many products and brands To implement a rationalization program to weed out older and low margin brands Consumer awareness to create pull To conduct effective AP programs to bring awareness to consumers. Conduct market research to establish consumer needs and trends Growing in a challenging market Introduce new products in existing markets using established Brands Introduce existing Brands in new markets Understanding the Competition Conduct market research to determine level and position of competitors in the market 4.2 McKenzies 7S Framework The McKenzies 7S framework is a value based management model, which looks at all the key elements which make up an organization, and it enables us to evaluate the effectiveness of our Marketing organization. An effective organization achieves a fit between all these 7 key elements, and should any element change, it affects all other elements and hence the organization as a whole. The McKenzies 7S framework is made up of hard and soft elements. Hard elements are those which are easily identifiable and visible, whilst the Soft elements are those which are less visible and are below the surface. Most organizations tend to focus on the hard elements, and ignore the soft ones, which tends to be an ineffective way of diagnosing and solving an organization issue. The 7S framework is a useful tool used to analyze the current state of an organization. Below is a pictorial view of the McKenzies 7S framework showing the Hard elements (green) and Soft elements (yellow) Hard Elements Strategy plans for the allocation of a firms scarce resources over time to reach identified goals. Structure the way the organizations units relate to each other; centralized, functional divisions (top-down); decentralized (the trend in larger organizations), matrix, network, holding etc. Systems the procedures, processes routines that characteri

The car industry: Dilemmas

The car industry: Dilemmas 1. Introduction The car industry faces a crucial weight problem resulting from increasing customer demands in terms of safety and performance. This trend leads to fully equipped cars in all classes getting more luxurious and comfortable. To escape from this vicious circle car manufacturers are forced to take action in the form of lightweight concepts. Light metals are seen as a promising opportunity to decrease the weight of a car. An increasing use of metals such as aluminium in the automotive industry shows that there is still large scope for improvements. Using aluminium car body panel is just a representative example of weight-saving effort did by car manufacturers. Aluminium has some properties that make it ideal for car bodies. The strength of aluminium frame and extruded sections is approximately the same as that of steel. However, the rigidity of aluminium is lower than that of steel. That is partly due to the modulus of elasticity of aluminium that is just one-third that of steel. (1) The effect is that aluminium has a higher elastic distortion when exposed to the same force as steel. Therefore the simple replacement of steel by aluminium engine is not an optimal solution as it does not exploit the whole scope of the advantages of aluminium. New ways need to be pursued to make full use of aluminiums advantages as a light weight material, which means it can be supplied in various aluminium alloys. Although the requirement for improved corrosion resistance and light-weighting are significant factors for use low-carbon steels in the manufacture of cars, (1) this traditional material still has some advantage such as higher strength and lower price. Many kinds of steel and aluminium alloys can be found commercially using in producing car body panels. Each material has its own characteristic. 1.1 Steel Steel is known as an alloy consisting mostly of iron, with carbon content between 0.2% and 2.1% by weight. (3) One of the main factors contributing to the utility of steels is the broad range of mechanical properties which can be obtained by heat treatment. For example, easy formability and good ductility may be necessary during fabrication of a part. Once formed very high strength part may be needed in service. Both of these material properties are achievable from the same material. All steels can be softened to some degree by annealing. The degree of softening depends on the chemical composition of the particular steel. (4) Annealing is achieved by heating to and holding at a suitable temperature followed by cooling at a suitable rate. Similarly, steels can be hardened or strengthened. This can be accomplished by cold working, heat treating, or an appropriate combination of these. Cold working is the technique used to strengthen both low carbon low alloyed steels and highly alloyed austenitic stainless steels. Only reasonably high strength levels can be attained in the carbon low alloyed steels, but the highly alloyed austenitic stainless steels can be cold worked to rather high strength levels. (5) Most steels are commonly supplied to specified minimum strength levels. Heat treating is the primary technique for strengthening the remainder of the steels. Some common heat treatment of steels is listed below: Martensitic hardening Pearlitic transformation Austempering Age hardening The recyclability of steel is brilliant and it is economically advantageous to do so. It is cheaper to recycle steel than to mine iron ore and manipulate it through the production process to form new steel. (6) 1.2 Aluminium-based alloys In the Earths crust, aluminium is the most abundant (8.3% by weight) metallic element and the third most abundant of all elements (after oxygen and silicon). Because of its strong affinity to oxygen, however, it is almost never found in the elemental state; instead it is found in oxides or silicates. Aluminium was isolated in small quantities early in the 19th century and it remained an expensive curiosity until 1886 when discovery of an economic method for its electrolyric extraction. Since then, the emergence of aluminium as a practical, commercial metal has relied primarily on the availability of electricity at economic prices. Aluminium is obtained from bauxite which is the name given to ores containing 40-60% hydrated alumina together with impurities such as iron oxides, silica and titania. Two steps are needed in the production of aluminium. First, alumina is extracted from bauxite. Second, use electrolysis to dissolve the alumina in molten cryolite and a typical electrolyte contains 80-90% of this compound and 2-8 % alumina together with additives such as aluminium and calcium fluorides. (7) Because the cryolite has a melting point as high as 1010?, the electrolysis of it needs a temperature of about 960? which wastes lots of energy and makes the cost of producing aluminium relatively higher. However, a new methodCambridge FFC which comes from the production of titanium, was introduced to China. This method use a NaCl-CaCl2 electrolyte which has a lower melting point of 520?, even lower than the melting point 660? of aluminium. By using alumina and liquid aluminium as negative electrode, the expanded reacting area on negative electrode allows the electrolysis of alumina to happen, which can theoretically reduce the electrolysis temperature to the melting point 660?. This research opens a new chapter of production of aluminium and will dramatically reduce the cost of producing aluminium some day. Generally speaking, about 85% of aluminium is used for wrought products which are produced from cast ingots. (8) The structures of alloys are greatly changed by the various working operations and thermal treatments. Each individual class of alloys behaves differently, with composition and structure dictation the working characteristics and subsequent properties that are developed. Casting aluminium alloys are also important parts of Al. Apart from light weight, the special advantages of aluminium alloys for castings are the relatively low melting temperatures, negligible solubility for all gases except hydrogen, and the good surface finish that is usually achieved with final products. Most of the cast alloys also show good fluidity and composition can be selected with solidification range appropriate to particular applications. (1) Casting alloys normally have mechanical properties that are inferior to wrought products and these properties also tend to be much more variable throughout a given component. 2 Study of possible alloy using for producing car body 2.1 Steel At present, low carbon steel sheet is most commonly used in car body production. Low-carbon steel has good machinability. Its strength and rigidity can fully meet the car body strength requirements, as well to meet the body welding requirements. 2.1.1 Low carbon steel Steel with low carbon content has properties similar to iron. Low carbon steel is the steel containing approximately 0.05-0.15% carbon. Content influences the yield strength of steel because it is a BCC structure and carbon atoms fit into the interstitial crystal lattice sites. (3) These carbon atoms reduce the mobility of dislocations. But it has a hardening effect. Because the interstitial carbon atoms cause some of the iron BCC lattice cells to distort, a high enough stress level must be applied in order for the dislocations to move. Low carbon is one of the most common steel and it is relatively cheap than most other steels. However, the strength is relatively lower, which can be seen in appendix. 2.1.2 Higher strength steel In order to reduce the weight of an automobile, it is absolutely essential to reduce the thickness of the sheet steel and compensate for loss of strength by using higher strength steel sheets. For inner panels, though a rather substantial amount of high strength steel is used, the percentage use is a little lower than in the outer panel due to stiffness limitation and insufficient formability. (9) However, the overall use of high strength steel is estimated to increase further more. The problems in press performance of high strength steel are wrinkles, surface deflection and springback, fracture especially in stretch flanging and galling on the forming tool. Until now, the average level of strength used widely is at most 400 MPa but in the near future the high strength steel with over 400 MPa may be used for the reduction of weight and in this case the forming difficulty will increase further more. (5) The thickness of a panel sheet decreases as a result of application of higher stre ngth steel. Many kinds of microstructural hardened high strength steel sheet are applied by automobile producers. Ø Dual phase steel Dual phase steel show lower yield strength compared with other types of steel having the same tensile strength because of mobile dislocations existing in the vicinity of the boundary of ferritic and martensitic phases. So presents low yield ratios. And thats why its elastic recovery after forming work is small and shape fixability is good. As it also shows larger elongation than precipitation hardened steel sheets and fatigue resistance. (3) Ø Trip steel sheet Transformation induced plasticity steel is also becoming an ideal material for car body panels. It has meta-stable austenite transformable into martensite contained up to 30% in bainite or ferrite and bainite matrix. Commercial Trip sheets have simple C-Si-Mn series chemical compositions. The simpler chemical compositions are made viable by stabilizing the austenite phase through distribution of alloy elements in the two phase region and concentration of carbon into austenite during bainite transformation. (4) 2.2 Aluminium-based alloy Pure aluminium cannot be applied to normal passenger car due to softness. Moreover, surface damages during stamping and handling are often subjected to subsequent surface hand finishing. This additional operation on the panel is usually inevitable. In contrast to pure aluminium, aluminium alloys contain solute additions which can markedly affect grain structures and particularly the microstructures within the grains. This in turn strongly influences the responses of alloys to working and heat treatment. Both crystal structure and microstructure influence mechanical properties. Slip is inhibited by grain boundaries, which are disordered regions, (and so small grains improve strength). Slip can also be made difficult by dispersing particles of another phase throughout the matrix. This indicates the typical hardening mechanism of aluminium. (9) There are some kinds of wrought aluminium alloys typically used for car body. 2.2.1 Aluminium Manganese Alloys 3xxx This series of alloys is non heat-treatable. The addition of approximately 1% manganese increases the strength by approximately 10 15% compared with 1200, without any major loss in ductility. This non-heat treatable alloy generally finds a wide application where greater strength is required without any major loss in corrosion. The addition of manganese to the chemical composition creates phases like (Mn,Fe)Al6 or (Mn,Fe)3SiAl12 that can be revealed by a solution of 10% of phosphoric acid. The grain structure obtained by work hardening or by annealing is usually revealed by anodisation. (8) 3103 is typically used for car body in the automobile industry. The composition of 3103 alluminium is 0.7% Fe, 1.5% Mn and some others. 2.2.2 Aluminium Magnesium Alloys 5xxx This series of alloys is non heat-treatable and exhibits the best combination of high strength with resistance to corrosion. This series also exhibits good weldability but when the Mg level exceed 3% there is a tendency for stress corrosion resistance to be reduced, dependent on the temper used and temperature of operation. (1) Magnesium is largely soluble in aluminum compared to the other elements, but the content in excess can appear as eutectic Mg2Al3. After cold rolling and annealing they can be found at the grain boundaries or after cold working they can precipitate on deformation bands. In both cases the structure can be revealed by an etching of 10% H3PO4. At the same time as Cr is a frequent additive in this series, Cr2Mg3Al18 may appear as a fine dispersoid. (8) 5182 can be used as car body panel. The composition of 5182 alluminium is 4.1% Mg, 0.4% Mn and some others. 2.2.3 Aluminium Magnesium Silicon Alloys 6xxx This group of heat-treatable alloys uses a combination of magnesium and silicon (magnesium Silicide) to render it heat-treatable. These alloys find their greatest strength, combined with good corrosion resistance, ease of formability and excellent ability to be anodised. This family takes the main advantages from the strengthening due to the precipitation of Mg2Si. So the etching will reveal the iron rich phases like Fe3SiAl12, Fe2Si2Al9 that are insoluble and the coarse precipitates or the excess soluble precipitates (0.5%HF). (8) Typical alloys 6009 in this group are used for car bodies. The composition of 6009 aluminium is Si 1.1%, Mg 0.6 %, Mn 0.4% and some others. 3 Study of competition between steel and Al Automobiles today are over 63% iron and steel by weight. (10) With rising energy and environmental concerns, as well as increases the performance of the car, vehicle light-weighting continues to be a prominent concern for vehicle manufacturers. At the present, more and more aluminium alloys are introduced to automobile industry because the aluminium alloys can normally meet the requirement but is only half weight of steel. However, both the traditional steel car and aluminium have their advantages or disadvantages on aspects of manufacturing, safety, repairability, cost, recyclability, and environmental protection. 3.1 Manufacturing Aluminium parts can be more complicated in their design because the high number of design solutions likes the castings available in nearly any shape. One casting can replace a complex part consisting of several steel panels. Consequently a reduction of parts up to 50% is feasible. (1) This again makes design, construction and production easier as fewer parts need to be dealt with in any stage of the design and manufacturing process. Aluminium car body has fewer parts lead to fewer tools and fixtures, which makes manufacturing easily and therefore saving working spaces and expenses. Because the sheets can tear easily, low elongation and yield limits of aluminium alloys make it difficult for stamping. This has to be taken into account when designing and building car bodies. Also a higher resilience of the sheets causes difficulties in keeping the tolerances during stamping for individual parts and therefore for the whole car body. (11) Furthermore, it is difficult to keep the body tolerances after welding processes since aluminium extrusions and cast sections behave unpredictably when subjected to uneven heat influence. The heat expansion of aluminium is higher than steel, so all fixtures need to be built more solidly and stable to cope with the higher forces. Extensive pickle treatment is necessary to create a weldable surface for aluminium car body. Also the finish of the surface for the paint shop is costly and requires a lot of time and knowledge since the sheets tend to get scratched more easily than equivalent steel panels and the surface of the sheets is liable to form waves. (12) The 6xxx series of aluminium alloys which has been used a lot for the car body requires heat treatment to achieve the demanded strength. The drying process in the paint shop is not sufficient as the conventional temperatures are not high enough. Hence, an additional heat treatment line needs to be installed to heat the car bodies up to 210Â °C for 30 min to harden the aluminium alloys. (13) This cannot be done in advance of manufacturing as it would influence the welding processes negatively. When using aluminium alloy as car body material, contact corrosion plays a much more crucial role as steel accelerates the corrosion of aluminium than using steel body. So that screws or other parts made of steel need to be coated. Otherwise holes in the car body are unavoidable when exposed to moisture. (7) 3.2 Repairability and safety aspects Nowadays, Crash tests have aroused the publics attention since occupant safety is a feature that is receiving considerable public attention. Automobile companies even promote car safety as a leading aspect in their advertising campaigns. Additionally, insurance companies set great store by repairability of cars as they cause a significant part of their costs. In some countries the expenditure per car for repairing certain types of damage is assessed and taken into account when the car is being classified for insurance. (15) In approximately 5% of all accidents the frame structure of a car is damaged. (2) This can be crucial if casting parts or extrusions are concerned as they cannot be reformed properly. They need to be replaced in sections or as a whole dependent on the severity of the accident. Cast aluminium sections especially are liable to develop cracks and consequently need to be examined carefully. Additionally, a completely different approach to repairing damage forces dealers to train their mechanics in the appropriate techniques. In particular aluminium shielded arc welding requires accuracy, practice and the appropriate equipment but not steel. This becomes a problem especially for small dealers as they cannot afford the necessary equipment or staff. (12) Also, tools must not be mixed up with steel tools to avoid corrosion caused by steel particles in the aluminium panels. A separate set of tools for aluminium is mandatory to fully avoid these effects. (14) However, the properties of aluminium offer several advantages to steel. Tubular aluminium sections crumple in the ideal way when subjected to impacts. They develop a crumple pattern that can absorb more energy than equivalent steel elements. Consequently with half the weight of steel an aluminium structural member provides the same safety. (15) 3.3 Cost It is obvious that aluminium is more expensive to manufacture than steel. The costs of a sophisticated aluminium car body are many times larger than of an ordinary steel body. This can be especially crucial when being applied to small cars as the margin there is lower than at luxury cars. Higher material costs, a more sophisticated handling of aluminium parts in comparison to steel and some alloys need heat treatment to achieve the required strength, are the main drawbacks. (9) However, the use of aluminium causes lower investments for tooling due to the fact that stamped steel parts are replaced by extrusions which cause costs only a fraction of the costs required to manufacture stamping tools. This is especially interesting for low volume series as the tooling costs here have a relatively high influence on the unit costs. Additionally, punch riveting and clinching consume less energy than spot welding and will cause lower energy costs. But the development of high volume technology for welding, riveting and bonding is a crucial issue that has kept car manufacturers from producing all-aluminium car bodies as it is accompanied by high initial investment for research, development and design. (15) 3.4 Recyclability Recycling is likely to become more important in the future as governments force industry to design fully recyclable products just as is an increasing customer awareness in terms of environmental protection and hence a growing demand for eco-friendly products. To preserve the quality of the recycled material the different alloys must not be mixed up. This is especially crucial for the production of extrusions and sheets out of recycling aluminium alloys as they have lower tolerance levels of impurities than steel. Additionally, they can only be recovered if they are not mixed with cast parts. (6) Therefore, joined aluminium alloys panels with different alloys cause problems. Also panels that are joined with steel parts like rivets make recycling problematic since steel parts need to be removed to keep the number of foreign substances low. (6) This becomes more difficult as aluminium cannot be magnetically separated from other wastes. In order to recycle aluminium only a fraction of the original energy consumption is needed, even less than for recycling steel. 3.5 Environmental protection The environmental issues of different materials can be assessed by a comparison of the energy household of an aluminium and steel-made car during production and over their whole lives. Only having regard to all processes that cause energy consumption during production and operating life can an accurate result be given of the eco-friendliness of a car. It includes material cycles and the amounts of energy needed to produce and maintain a car during operating life time, including fuel. (15) If primary material is used, aluminium starts with a drawback of an additional energy consumption during production. Compared with steel, far higher amounts of energy are needed to produce lightweight metals like aluminium. For illustration, a car could achieve a weight reduction of 20 kg by the intensive use of aluminium alloys body other than the steel one. The additional energy consumed could be compensated after 3500 miles. After having covered this distance, the energy comparison works in favour of aluminium. A further comparison can be made in terms of carbon dioxide emissions. If primary aluminium is used it takes 60000 miles until the lighter aluminium auto has compensated the higher CO2 emission during production. However, when the proportion of recycled, secondary aluminium exceeds 75% the CO2 emission household is positive for aluminium from the first instance. (1) 4 Summary Considering the energy and environmental issues, using light weight metal for car bodies will be the trends in the near future. However, the traditional steel products still have the advantage of price and easy for manufacturing. Apart from luxuries cars already using light metal bodies, steel car bodies still take a large part of auto body market for it cheaper price and relatively better mechanical properties.