Common Stock Valuation and Cost of Capital Case Study - 1

Common Stock Valuation and Cost of Capital - Case Study Example From the above calculations, this stock is selling at $30 that is below $33.50 based on its predictable future cash flows. Therefore, it is undervalued since its selling price is relatively below the intrinsic value. From investments point of view, the company is priced below its true value. For this reason, it is rewarding investing this company’s shares because its stocks have a high probability of appreciating, hence a good investment opportunity that guarantees capital gains. This strategy (value investing strategy) has worked out well for Marquette Inc. given that its portfolio has consistently outperformed others in the broader market. Chief Financial Officers whose stocks are undervalued are less likely to issues them because such companies operate below their true value, thus have to pay more dividends in the future (Clayman, et al., 2012). Second step involves calculation of the cost of equity. With information on cost of debt available, it is possible to apply capital asset pricing model (CAPM) to compute the cost of equity. This is arrived at as follows: The company’s return on assets falls short of its WACC. This is an indication that this company is declining in value. This will scare away potential investors who would preferably invest their resources elsewhere that offer promising returns.The first step is the computation of cost of debt. Cost of debt represents bond’s yield to maturity. From yield to maturity calculator, this value is 7.51%.Therefore, the after-tax cost of debt is equal to 7.51% Ãâ€" (1 – 0.40) = 4.506%.  The second step involves calculation of the cost of equity. With information on the cost of debt available, it is possible to apply capital asset pricing model (CAPM) to compute the cost of equity.The company’s return on assets falls short of its WACC. This is an indication that this company is declining in value. This will scare away potential investors who would preferably invest their resources elsewhere that offer promising returns. Such decline in the value of the firm, there fore, raises concern about the company’s ability to raise capital in the future.

Lift slab construction failures Research Paper Example | Topics and Well Written Essays - 3000 words

Lift slab construction failures - Research Paper Example Once the slab has been raised to its desired level initially without proper leveling, it is joined with the columns with the help of the wedges which are â€Å"tack welded†. The area all around the slab is connected with the column through complete welding of the interface as soon as the slab has been leveled to attain its permanent position. The slab is held in position by steel wedges or other holding structures designed with the columns. The sequentially raised slabs become floors to higher slabs. Initial casting of the concrete slabs takes place at the ground level. However, with subsequent rising, the successive slabs are cast above the previously raised floors, which are in turn raised to their respective heights. The columns are also extended, in multiples of about a maximum of 5 storeys side by side as more and more slabs are raised to their heights. (webs.demasiado.com, n.d.). As the building reaches its anticipated height and all of the slabs are raised to their resp ective positions, the hydraulic jacks are removed. The significance of the employment of this technique in the construction of high rise structures is its time-saving and cost- reducing nature and because it offers a more organized, simple and systematic approach towards the construction of high rise buildings. Lift slab construction eliminates the provision of beams and provides a smooth and finished surface on both sides. The technique serves to reduce the construction time and material cost each up to about 30 % as compared to the costs incurred on conventional construction techniques. (webs.demasiado.com, n.d.). In addition to that, the casting of concrete slabs right on the site results in cutting the traveling and miscellaneous charges from the concrete plant to the site. Lift slab construction has long been a much practiced technique for the quick construction of multi-storey buildings. The use of this

The Pepsi Carbonated Soft Drink Consumer Demand Promotion Essay Example for Free

The Pepsi Carbonated Soft Drink Consumer Demand Promotion Essay A strategic plan for PepsiCo North America is hereby proposed as follows for the geographical region of the national United States for the Pepsi Soda Product promotion to consumers between the ages of 12 through 18 years of age. It will utilize a pull strategy through the distribution channels to stimulate demand for the Pepsi carbonated soft drink to the end users as defined to maintain Pepsi’s younger generation of consumers over the next two decades. The strategic plan will consist of a strategic alliance with The Walt Disney Company coupled with a pop star endorsement by Hannah Montana and Kanye West with multiple promotion communication channels and strategies over the next two (2) years. The primary competitor, Coca-Cola, has been entrenched in the North American beverage market and is most commonly consumed by older generations. As such, Pepsi has been typically been targeted to a younger audience. As the ‘Pepsi Generation’ ages, PepsiCo North America should take proactive marketing action into the younger audiences to maintain the younger generations of soft drink consumption for decades to come. The Company History and Related Companies 1 PepsiCo (herein referred to as the ‘Parent Company’) was founded in 1965 via the merger of two major corporations, Pepsi-Cola and Frito Lay. Subsequently in 1998, Tropicana was acquired to add the family of brands under PepsiCo. In 2001, the Parent Company made yet another bold step in the merger with The Quaker Oats Company, which also then included the Gatorade Company. Notwithstanding the Parent Company being relatively young, several of the brand names under the PepsiCo umbrella have been in existence for over 100 years. Through the multiple brand acquisitions and developments PepsiCo is now a leading conglomerate owning significant market control and brand equity in consumer convenience foods and beverages. â€Å"PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $92 billion† (PepsiCo, 2007). Sales volumes are measured on the retail level to show success of the manufacturing due to the Parent Company utilizing a pull strategy for its multiple divisions and product lines with a combination of a push strategy. The current headquarters are located in Purchase, New York. The multiple corporations within the PepsiCo Family are Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International, and Quaker Foods North America. Frito-Lay North America markets and sells to the subject geographical regions the following well known brands of convenience foods: Fritos, Lays, Cheetos, Ruffles, Doritos, Rold Gold, Tostitos, Sunchips, Munchies, Crackerjack, Go Snacks, Quaker Fruit and Oatmeal Bars, Quakers Corn and Rice Snacks, and even more. While Frito-Lay North America sells to business, its end user is a consumer who has demand for a snack food, or convenience food. These are typically found in grocery stores, gas stations, small markets, vending machines, public schools, and several other distribution channels. Several of these products are facing new market changes including a health conscious consumer movement. Thus, a great diversification of product lines within the PepsiCo Family is The Quaker Oats Company, merged in 2001, just on the cusp of the health conscious movement. Brands include Quaker Oats products, Aunt Jemima products, and Rice-a-Roni products. The Gatorade brand rights are legally owned by this Corporation, yet it is sold and marketed through PepsiCo Beverages North America. PepsiCo International markets and sells the North American product brands abroad, and in additional markets and sells the Mirinda, Walkers, Sabritas, Gamesa, etc. and several others in multiple countries (over 200). Each of these subsets of brands are developments of unique products tailored to each geographical culture it is marketed to. The focused Corporation of the subject strategic proposal is PepsiCo Beverages North America. This company was originally founded in 1898 by a North Carolina druggist. PepsiCo Beverages North America (herein referred to as the ‘Company’) sells several brands of consumer beverages in the United States and Canada. The various beverage products span through carbonated soft drinks, juices, readymade teas, isotonic sports drinks, bottled water, and enhanced waters. Several established brands include Diet Pepsi, Mountain Dew, Gatorade, Tropicana products, Aquafina Water, Sierra Mist, Mug, Propel, Sobe, and Dole. Refer to the Competitor Analysis section for in depth product information and listings. Outside of manufacturing and selling bottled products, the Company manufactures and sells concentrates for some of the above mentioned brand name beverage products to licensed bottlers. The Company has also established strategic partnerships with Lipton and Starbucks to create, market, and sell ready to drink Lipton tea brands and bottled ready to drink Starbucks Frappuccino drinks. These are two very powerful example of a co-branding strategic partnership. Industry Analysis of the Beverages Market 4. Soft drinks can be divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks category. The carbonated soft drink market has been challenged by a health consciousness movement within American consumers. Health consciousness is a very strong growing trend in America, and has created an organic movement within the drink and food industries. Within the last five years ending in 2006, the soft drink market in the United States has experienced 0. 0% growth due to this factor. Since 1975 the overall growth rate of soft drink market has been slowing. (Figure_1) As this provides a constraint on new market opportunities, it does not constrict maintaining a similar level of revenue or slightly improving it. As the current consumer market continues to age, it is expected there exists a certain level of retention to Pepsi consumption until a specific age when it is recommended by a doctor not to consume a soft drink. Given Pepsi’s position in terms of product placement within demographics, it holds the youth market when compared with Coke. As growth slows, the youth markets must continually be targeted to maintain the consumption level of Pepsi as new consumers enter the market of soft drink consumption, and other age out of it. This strategy will over a long period of time prove to gain market share of domestic soft drink consumption over Coke, while being offset by a slowing of the overall consumption. Figure 1 [pic][pic] The subject proposal is targeted to use a pull strategy through the distribution channels, and is therefore focused on the end user, or consumer segment of the market. Notwithstanding, the industry overall (primarily Pepsi and Coke as outlined herein below) does not only sell directly to consumers. A very prevalent distribution channel is through licensed bottlers and restaurant chains. A very strong business to business transactional distribution channel exists in the soft drink industry, and in fact 22. 6% of all soft drink volumes are sold in a syrup for fountain soda. This is 100% business to business within the scope of these transactions. The remaining 77. 4% of packaged soft drink volume comprises primarily of business to business transactions to retailer and bottling companies. (Figure_2) While PepsiCo Beverages North America does not directly sell to consumers primarily, the subject proposal will stimulate demand for the product at the end user level, and therefore result in more business to business sales in order to meet that demand. PepsiCo Inc. and Coke-cola Co. have dominated the carbonated soft drink industry in North America since they first entered this market. They continue to compete with each other for market share for centuries. Therefore, some experts conclude that the soft drink market is an oligopoly or even a duopoly between Pepsi and Coke. 5 By the year of 2006, PepsiCo has the leading share (26%) of U. S. liquid refreshment beverage market, followed by Coca-Cola which has taken 23% of market share as indicated in the left chart. Cadbury Schweppes, another big rival on the bottled soft drink shelves, obtained 10% by acquiring key brands in the US, namely Dr. Pepper, Seven Up, and Canada Dry. SWOT Analysis |Strength |Weakness | |Branding and packaging |Hard to enter markets occupied by Coca-Cola | |Appealing to young generation |Lack of novelty in advertising | |Superior Taste (in Blind Tests) | | |Many distributions | | |Opportunities |Threats | |Global markets |Health Conscious Consumer Trends | |Additional Youth Consumers entering the market |More substitutes | â€Å"Manifesting brand essence through packaging is powerful at retail,† declares Ron Pence, Pepsi Senior Marketing Manager for packaging innovation. Youth and vitality is the main idea that the Pepsi brand tries to express, and the bottle design helps the brand associate with teens at the age between 12 to 18 year old. Pepsi restyles its cans with a series of 35 new designs and different themes such as car culture, sport or fashion. On Pepsi website, each theme has its own video clips which can be downloaded for free and other features to attract consumers with the purpose of representing the â€Å"fun, optimistic and youthful spirit â€Å"of Pepsi. The natural tendency of young generation is to rival with old generations. Pepsi also use â€Å"music, which was traditional weapon of teenager to show their rebellion approach†. 7 Besides, a blind test conducted by Pepsi was performed in shopping malls, grocery stores and other public locations, in which consumers were asked to pick the soft drink they liked better, without knowing whether the cola they tasted was Coke or Pepsi. As results came in, 57% of testers chose Pepsi and only 43% chose Coke. It became apparent that Pepsi tastes better than Coke. 14 In addition, Pepsi products are distributed to many outlets. For example, supermarkets where Pepsi buys large shelf area and display areas so the customer can find them easier, Convenience stores, gas stations, restaurants, movie theaters and almost and other conceivable spot. Pepsi is now sold in more than 160 countries around the globe, but it still has a weakness in the international beverage market because it entered later into this arena than Coke. Pepsi has tried to enter this market by trying to do in three years what took Coke 50 years to do. Nevertheless, Pepsi has to spend years â€Å"to mature simply due to Coke’s dominance in the international market and the strong ties that Coke has developed with these markets and their governments. †15 Additionally, when marketing its products, Pepsi utilize celebrity endorsement mostly which bored some consumers due to lack of novelty. Conversely, the success of fresh and creative advertise has consistently helped Coco-Cola attract and retain customers. The world is becoming a smaller place with investors thinking in terms of sectors rather than geographic boundaries. Broad global markets, like China, India, can provide lots of opportunities for Pepsi. We may conclude from the tables on the right that in 2004, 63% PepsiCo’s profits come from the United States 8, and in the same year, the U. S. holds 30. 90% of the global market share under Europe (showed in the table below), which means Pepsi still has opportunities to compete globally. Moreover, as Pepsi targets young generation, additional youth consumers enter the market every year, which provides Pepsi adequate consumer base. For these decades, changing societal concerns, attitudes, and lifestyles become important trends that force the soft drink industry’s business environment to change. Growing health concerns for caffeine and sugar consumption threatens the carbonated industry. The large amounts of sugar, fat, and acid contained in cola will lead to heart disease, vascular diseases, osteoporosis or tooth decay. On the other hand, many other companies have tried to enter the carbonated industry, but they face high barriers, such as lawsuits and tough competition. Some of these companies end with searching for entering the noncarbonated soft drink industry for growth. Consequently, some consumers will turn to noncarbonated soft drink, such as bottled water, teas, instead of soda. Environmental scan of today’s carbonated beverage marketplace A quick glance at today’s beverage marketplace indicates an increasing amount of beverage alternatives in the market. As such, these beverage companies must understand the various factors that can help them succeed or fail. For instance, the increased awareness of the importance of health has significant influence on soft drink industry. Since most soft beverages comprises of unhealthy ingredients including High Fructose Corn Syrup, the beverage industry faces an incredible threat to their reputation and sales. Therefore, developing consumer-preferred products that can become an integral element in consumers’ daily lives has become an essential issue for beverage industry. Possible environmental factors are as follows:  ¦ Social environment ? In 2004, 28 percent of all beverages consumed in the U. S. were carbonated soft drinks. In the United States, 450 different types are sold and more than 2. 5 million vending machines dispense them around the clock, including in elementary and high schools. ? As consumers focus more on health and nutritional benefits of food items, it has sparked a key new driver in trends throughout the beverage industry. The result is the decrease in sales of carbonated beverages.  ¦ Competitive environment ? Monopolistic competition: PepsiCo. , The Coca-Cola Company, Cadbury Schweppes ? The entire beverage industry, including but not limited to bottled water, juice, other carbonated beverages, and ready-to-drink tea. ? Recent growth and demand of sports and energy drinks.  ¦ Regulatory environment ? In response to weight gaining and health concerns, the nation’s largest beverage makers including Cadbury Schweppes, PepsiCo. and The Coca-Cola Company agreed in May 2006 to halt nearly all soda sales in public schools. Beginning in 2009, elementary and middle schools will sell only water and juice (with no added sweeteners), plus fat-free and low-fat milk. High schools will sell water, juice, sports drinks and diet soda. Diet sodas use artificial sweeteners, which add little or no calories, though some, such as aspartame, have been embroiled in controversy for years over their questionable health benefits and even possible links to cancer. Obviously, Pepsi is facing not only the transition of customer perception but also the regulation stress. Besides, it always has it big and powerful competitor, The Coca-Cola Company. Under this circumstance, strategy and innovation become the top issue of Pepsi. 16 Competitor Analysis The table below displays the various brands between PepsiCo. and The Coca-Cola Company. It appears that for every product on the market from one company, the other company has an similar product to match it. This demonstrates the intense compeititve nature of both companies to keep up or outwit the competition. [pic] Differential Advantage The Coca-Cola Company has the distinct advantage of being the most recoginzed brand in the world. It is considered the classic beverage in the United States as well as in other countires. In fact, when Coca-Cola decided to change its forumula dubed â€Å"New Coke† in response to Pepsi’s emergence, public outraged roared throughout the nation. Fearing mass boycott, the original Coke formula was quickly reinstated to satisfy the demands of the public under the name â€Å"Coca-Cola Classic†. Revered as the classic beverage, Coke enjoys the stature of being the market leader. Coke appeals to a wide global audience in terms of demographics and popularity. One side effect of being the â€Å"classic† choice leads to a larger share of older consumers. PepsiCo. appeals to younger consumers with a more sweeter taste compared to Coke. Pepsi presents itself as the hip and cool alternative choice over Coke. This is edvient in the deep blue hues and patterns that Pepsi takes advantage of in its marketing compaigns. Pepsi’s younger image is also aided by celebrities endorsement touted by the teen market including Britney Spears, ‘NSync, along with popular rappers. Self-proclaimed as â€Å"The Choice of a New Generation†, Pepsi devised television commericials of younger consumers participating in blind taste tests. The participants frequently perferred Pepsi over Coke. Eventually, PepsiCo. began hiring popular celebraties to promote their products. Resource Analysis The Coca-Cola Company The Coca-Cola Company’s flagship product, Coke, is sold in stores, restaurants and vending machines in more than 200 countries. Originally developed as a medicine in the late 19th centry by John Pemberton, it has evolved into a dominating figure in the soft drink market throughout the 20th century. The Coca-Cola Company licenses worldwide bottlers who hold territorially exclusive contracts with the company. Cola cncentrate is sold to these bottlers who them produce the finished cola in cans and glass bottles while using filtered water and various sweeteners. The finished product is then sold, distributed, and merchandised to retail stores and vending machines. Coca-Cola Enterprises is currently the single largest Coca-Cola bottler in North America, Australia, Asia, and Europe. In addition to licensing to bottlers, the company sells the concentrate to major restaurants and food service distributors for use in fountain drinks. The Coca-Cola Company envision a world in which†¦ They improve the lives in every community that they touch. They replenish each drop of water that they use. Their packaging is no longer seen as waste, but as a valuable resource for future use. Workplace rights are protected and all people are respected. They work in partnership with others to provide good jobs, world class quality beverages and a healthy environment. PepsiCo The Pepsi Cola Company started in 1898 in Purchase, New York. It became known as PepsiCo when it merged with Frito Lay in 1965. PepsiCo owned Kentucky Fried Chicken, Pizza Hut, and Taco Bell up until 1997 when they were spun off into Tricon Global Restaurants – which eventually became Yum! Brands, Inc. In 1998 and 2001, PepsiCo purchased Tropicana and Quaker Oats, respectively. PepsiCo, a global American beverage and snack company, manufactures, markets, and sells a variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks, and other foods. PepsiCo also manufactures Quaker Oats, Gatorade, Frito-Lay, SoBe, and Tropicana. (Figure_3) In several ways, PepsiCo differs from its competitor, The Coca-Cola Company, having almost three times as many employees. The Pepsi Bottling Group was formed for distribution and bottling. Figure 3 [pic] Mission Statement: We aspire to make PepsiCo the world’s premier consumer products company, focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity. Values: Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether actions today will contribute to our future. It is about growth of people and company performance. It prioritizes making a difference and getting things done. Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while being consistent with the processes that ensure proper governance and being mindful of the rest of the company’s needs. Responsibility and Trust form the foundation for healthy growth. It’s about earning the confidence that other people place in us as individuals and as a company. Our responsibility means we take personal and corporate ownership for all we do, to be good stewards of the resources entrusted to us. We build trust between ourselves and others by walking the talk and being committed to succeeding together. [pic] [pic][pic] Based on the pie chart above, PepsiCo and Coca-Cola have roughly the same market share in the United States. Finacial Analysis Brief Overview [pic] Overall, PepsiCo trumps The Coca-Cola Company in many financial categories – largly in part from PepsiCo’s wide array of products throughout 4 divisions: ? PepsiCo International ? Frito-Lay North America ? PepsiCo Beverages North America ? Quaker Foods North America Egg Diagram [pic] Analysis of the Target Market Consumers 3 |Who are they? |Teenagers between age of 12 and 18 in U. S. | |What do they buy? |Teens want to buy something real, something from â€Å"corporations | | |that remind them of themselves†10. They don’t want things that | | |they are thought to like. They something that pushes the | | |boundary, different than what they had before. | |When do they buy it? |When teens find something they can identify with and have the | | |need that must be satisfied immediately. | |How do they choose? |They quickly dismiss the products that look like some 45-year-old| | |guy trying to sell them something. They easily recognize the old | | |product that was yesterday’s news. They can tell what’s being | | |â€Å"fake† and what’s being â€Å"real†10 | |Why they prefer a product? |They pick a product because they believe that product can express| | |themselves13. They can relate to someone like themselves through | | |this product. | |How they respond to a marketing program? |They respond to something catchy. For example those ads in | | |magazine are brightly colorful10, the flashy graphics suggest | | |that teens respond well to that type of ad campaign; in | | |cyberspace they respond to a space created uniquely for them12. | | |They also respond well to products on sales. | The target consumer market to stimulate demand within is the young teen market between the ages 12 through 18 years old, geographically located within the United States. This segment is compiled of the â€Å"Tween† market and the older high school teenagers. â€Å"Tweens develop sophisticated tastes beyond their years, with boys gravitating toward electronic, Internet, and video games, and girls preferring fashion and social interaction components† (Abernathy, 2004). With the technology age with computers and increasing demanding academic environment, tweens and teens have less disposable time, and therefore product advertising attention is often tuned out. â€Å"Tweens spend their own money today: on average, $9 a week. Some experts estimate tweens have close to $80 a week in disposable income available to them†¦ Overall, the tween market is valued at $43 billion† (Abernathy, 2004). Beyond the tween market, the teenage high school student will sometimes hold a part time job, and have more independent tendencies. All in all, the 2000 U. S. Census estimates the U. S. population between the ages of 10 through 19 years old to be approximately 40. 6 million individuals. The goal of researching the target consumer is to accurately pinpoint the consumer behavior in regards to our product. According to our finding, these teens and â€Å"Tweens† are constantly searching for identities at their age. The most effective way of appealing our product to them is to find a common ground. For example, there are various reasons why teens and â€Å"Tweens† idolize certain celebrity. One of them is that they can find bit and pieces of themselves in their celebrity idol. After all, who doesn’t like to see himself/herself being a celebrity? So no matter what the product is, as long as it possesses characteristic of the identity the teens and â€Å"Tweens† are searching for, they will make the purchase. The teens and â€Å"Tweens† are still very young. They have very vivid imagination and are highly visual. Therefore they are attracted to colorful pictures in the magazines. It is usual for them to just look at the pretty pictures in the magazine without reading the articles that supplement pictures. According to the finding, these target consumers prefer products that are â€Å"real†. By â€Å"real† they mean the manufacture genuinely create this product specifically for them, at least it should appears to be. Since Pepsi Cola is basically for everyone, making it appears to be special to teens and â€Å"tweens† are very important. These consumers prefer individuality. Such preference is reflected in the finding that they are constantly in search for a product that expresses themselves. The last thing these consumers wants is pressure or stereotype that sometimes appears on the commercial and magazine ads. Strategic Action Plan. The strategic alliance with Walt Disney will initially consist of (i) concert support of and promotions at several of Hannah Montana’s concerts throughout the United States, (ii) Pepsi promotion via seamless advertisement within the Hannah Montana aired shows by having characters refresh themselves with Pepsi and also have Pepsi signs in the background, and (iii) a sparingly aired Pepsi commercial endorsed by Hannah Montana to be promoted via the ABC channel network (a Disney owned network). A future alliance holds the possibility of future benefits through Disney media networks and consumption at theme parks and resorts. The concert support will come with signs at the live shows and events, Pepsi sales at the concerts, and Pepsi commercial promotions on the concert screens at intermission. There will also be a special promotional event of Pepsi Challenge tasting at the Pepsi center, which was previously near sell out for Hannah Montana. The seamless advertisement on the Hannah Montana show will consist of the characters drinking Pepsi as refreshment in a natural environment along with Pepsi signs in the background of the sets. This will continue for two (2) years during the strategic partnership, and be maintained on a very subtle level in the productions. Twice a year over the two (2) year period ABC (A Disney owned network) will air a Pepsi commercial of a music video of Hannah Montana singing the Pepsi Theme song. As part of the strategic alliance, Disney is giving a low market rate for airing over the network. ABC has been topping the charts with hit series and has been expanding viewer base considerably over the past decade. The Denver Post summarized the market impact this pop idol holds as: â€Å"When an episode of Hannah Montana followed the debut of High School Musical 2 this fall, the movie sequel got all the buzz, but the episode of Hannah Montana averaged 10. 7 million viewers the highest ratings for a regular series in the history of basic cable. The Disney Channels 90 million subscribers can watch Hannah Montana daily, sometimes as often as seven times a day. An average 2. 2 million viewers see each episode. The show also airs weekly on ABCs Saturday morning block, and is licensed in 177 countries. Of course HM is available around the clock as streaming video on computers and on iTunes. Compared to the ratings of all shows on U. S. television, Hannah Montana is second only to American Idol among kids 6-11 and tweens† 2 (Ostrow, 2007). Utilizing Walt Disney’s ‘tween’ star Hannah Montana for endorsement will provide awareness and positive associations with the Pepsi brand of carbonated soft drink. This pop star idle will build significant brand equity within the demographics of young females between the applicable ages of 12 through 15 years old. This will predictably improve vending machine sales at middle schools and high schools, as well as sales at grocery stores for their respective homes. It will also build repertoire with the respective mothers who also attend the concerts and watch the shows. The mothers of the daughters are in fact the ultimate purchasers (and also partially the ultimate consumers in some cases) of the product, while their daughters are the influencers and ultimate consumers. The daughters of families will typically have a greater influence over the parents as purchasers in American families more so than comparable aged boys. This is primarily due to the value system of the parents to typically spend more attention and money on the daughters of the family, as young females are seen to need more care. This depicts why Hannah Montana is a highly effective endorsement for Pepsi within this demographic. This strategic relationship with Walt Disney will provide the future potential for a stronger partnership with Walt Disney, thereby opening the possibility of Pepsi consumption within the theme parks and resorts, while opening a powerful media network to younger audiences for future promotion channels. Kanye West will build brand equity in the male teen market between the applicable ages of 14 through 18 years old. A male target of the upper teen years is deemed more effective, due to males in their teens practicing habits of independence and having allowances for spending. His aired TV commercial will be on ABC similar to Hannah Montana, however it will be aired three times a year over the two (2) year period. The commercial content will be his version of a Pepsi theme. Works Cited 1 Overview: Company History (2007). PepsiCo Corporate Website. Retrieved October 28, 2007 from http://www. pepsico. com/PEP_Company/Overview/index. cfm. 2 Ostrow, Joanne (Oct. 19, 2007). ‘Disney Wields Its Marketing Magic. ’ Denver Post. Retrieved October 29, 2007 from http://www. commercialfreechildhood. org/news/disneyweilds. htm. 3 Abernathy, R. W. (November, 2004). Tween Market 101. TD Monthly. Retrieved October 29, 2007 from http://www. toydirectory. com/monthly/article. asp? id=918. 4 The Beverage Marketing Corporation (August, 2007). 2007 Carbonated Soft Drinks in the U. S. Retrieved October 29, 2007 from http://www. beveragemarketing. com/reportcatalog3f. html. 5 Industry Analysis: Soft Drinks. Meghan Deichert, Meghan Ellenbecker, Emily Klehr, Leslie Pesarchick, Kelly Ziegler. Strategic Management in a Global Context February 22, 2006 from https://www. csbsju. edu/library/local/5thYear/zeigler_paper. pdf 6 PepsiCo. Performance with Purpose (2006). PepsiCo Corporate Website. From http://www. pepsico. com/PEP_Investors/AnnualReports/06/PepsiCo2006Annual. pdf 7 Kumar, Arvind. Finding weakness in the competitor strength. From http://business. articlesarchive. net/finding-weakness-in-the-competitor-strength. html 8 Murray, Barbara. (2006b). Pepsi Co. Hoovers. Retrieved February 13, 2006, from http://premium. hoovers. com/subscribe/co/profile. xhtml? ID=11166 9 Datamonitor (2005, May). Global Soft Drinks: Industry Profile. New York. Reference Code: 0199-0802. 10 http://www. inc. com/magazine/20001201/21117_pagen_3. html 11http://www. clickz. com/3334641 12www.ala. org/ala/pla/plaevents/nationalconf/program/thursdayprograms/mrbibliography. doc 13 www. marketingprofs. com/2/kewl. asp 14 Sampson Lee (Nov 21, 2007). Coke or Pepsi? From http://www. gccrm. com/eng/content_details. jsp? contentid=2073subjectid=101 15 Pepsi cola from http://www. freeessays. cc/db/11/bmu315. shtml 16 Larry West, What is the Problem with Soft Drinks? About. Com website, from http://environment. about. com/od/health/a/soft_drinks. htm |Team 5 | |Chen, Szuhua (Twiggy) | |Xiong, Xitao (Helen) | |Ma, Johnny | |Tsang, Man | |Dwyer, Michael | Figure_2.

Low employee satisfaction in Air Arabia

Low employee satisfaction in Air Arabia Air Arabia was launched in 2005 as one of the initiatives in low cost carriers segment in Middle East. Over the period of time it was able to build up a remarkable company name in the market along with a firm financial record of its own. After introducing problems related to Political, Social, Environmental and Technological (PEST) aspects of Air Arabia, this part concentrates on analyzing these problems with the help of basic organizational behavior theories. The report is divided in four sections, each one for Political, Social, Environmental and Technological aspects. In each section, OB concern of the problem followed by the problem from the case and the explanation is mentioned. People: Problem Statement: In previous section we discovered a problem that employees in Air Arabia were not satisfied with the low financial benefits provided against their high performance. Problem Highlight: Performance based Incentives Performance based incentives: This is a problem of pay for performance scheme. In pay for performance or say performance based incentive system, employees are rewarded in accordance to their performance. Now the problem is that employees can never be satisfied with the outcome of this particular form of reward system. This can be understood by Equity theory. Equity theory states that employees use to compare their position (here rewards) with those of other employees. So even an organization remain transparent in distributing incentives, until unless the employees themselves become satisfied in light of equity theory, the problem like the incentive problem in pay for performance scheme in Air Arabia remain standing.  [1]   Problem Statement: One of the major problems associated with employees is that company is not able to provide them with long term commitment regarding their performance appraisal and work effectiveness bonus. Problem Highlight: Performance Appraisal Performance appraisal: Performance appraisal is the measure of evaluating the performance of the employees. In air Arabia, the performance appraisal system presently in use incorporates the number of task and time limit of those task accomplished by the employees are recorded  [2]  . This forms the basis of the performance appraisal scheme in the company. (Performance-related pay, 2005) Now the problem in this scheme is that this does not count the quality and situation under which work is carried out. For example, in Air Arabia, the performance scheme is same for sales and administrative staff. Now administrative staff has clear work functions to follow whereas sales staff has to undergo filed work which is more challenging. The targets for sales staff are tougher to achieve than those of administrative staff. Thus the performance appraisal scheme in Air Arabia is not satisfactory and requires other schemes like 360 degree scheme etc  [3]  . Problem Statement: The case shows that Air Arabia exhibits problem of workforce management due to workforce diversity. Problem Highlight: Diversity Diversity: Leaders and managers in Air Arabia do not handle the workforce diversity effectively. In their effort to manage the diversity, they go with equal treatment strategy. In this strategy, each of the employees is treated equally irrespective of its cast, color, race and language they speak. This looks quite fair in first look but the approach is not helpful in country like Dubai. The country has people of different religion and cast, speaking different languages and has different educational schemes and mental aptitude  [4]  . Now the problem is some particular type of employees are always advantageous of this equality approach. For example, the work force of India is more fluent in English than the natives of UAE. UAE culture gives emphasis on Urdu and not English. Now because of low proficiency in English and the equality approach in diversity management, UAE natives are mostly under-rated than few foreign classes of employee. This introduces a sense of dissatisfaction and un-happi ness towards the job. Problem Statement: employees of Lufthansa Air went on strike to improve their working conditions. Problem Highlight: Work Environment Work environment: Work environment is a major constituent of an effective organizational culture. The work environment not only constitutes the physical constituents of the location but also the culture of the work like senior-subordinate relations, type of communication etc  [5]  . The situation here shows that the employees of Lufthansa Air are not satisfied with the work environment and went on strike. The actual reason for the dissatisfaction was companyà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s pressure to work more than the required 8 hours to answer the increasing competition in aviation industry. This decision was not welcomed by the staff as it resulted in more hastiness in job and thus resulted in improper work conditions in the company. (Listening, the Doorway to Employee Commitment, 2005) Environment: Problem statement: Air Arabia had to reduce some of its other expenses like HR expenditure and to make it possible it has reduced intake of employees that had increased work pressure over presently working employees tremendously. Problem Highlight: Work Environment and Employee Shortage Work environment and employee shortage: The problem here is of bad work environment due to excessive work load because of lesser number of employees. The problem was resulted due to high oil prices which forced the company to shrink the workforce. This shrinkage resulted in high pressure on present work culture and thus decreased efficiency of work environment. Problem Statement: High operational cost which is internal factor of employee malfunctioning causing external effect over organization. Problem Highlight: Employee Inefficiency and Lack of Motivation Employee inefficiency: Lack of motivation The employees in Air Arabia were found to be less efficient and thus the company was compiled to increase its fare to sustain pressure of increasing oil prices  [6]  . The main cause of this problem can be lack of motivation in the employees towards the companyà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s growth. If the employees would have been more motivated, they could have been more efficient and thus the problem of price hike because of high operational cost could have been prevented. This is a clear case of less motivated work force. (Listening, the Doorway to Employee Commitment, 2005) Problem Statement: Most of its employees have to work under pressure basically for the sustainability of the organization which has raised the level of employee dissatisfaction in the company Problem Highlight: Employee Dissatisfaction Employee dissatisfaction: There are a number of competitors of Air Arabia in low cost aviation industry which forces employees to work harder with limited resources. This results in greater employee dissatisfaction towards the workplace and more employee turnover rate. Technology: Problem statement: But all these technical advancements have an upper limit beyond which it cannot be stretched, and at that point employee performance comes into picture and has to be taken to its best possible level. Problem Highlight: Employee Training Employee training: The problem here is that when new technology is introduced in the company to cut operational expenses, the work and expectation from the employees also changes a lot. So there is a clear need to employee training. Employees are needed to be trained at new technology so that they are able to be a part of companyà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s cost cutting scheme. Employee training is a necessary part of any organization which needs to be happen periodically  [7]  . Structure: Problem Statement: as employee commitment is an important issue and it cannot be handled by the organization without proper structuring and it is also one of the important issues faced by Air Arabia Problem Highlight: Leadership Leadership: In the case, we found that employees are not committed to the organization. This is the responsibility of the leader to keep the faith of the employees in the organization. Thus the company needs its leaders to take more active role. The leaders in the company need to motivate the employees and to maintain the commitment of the employees in the company. The structuring component in this problem is more of a requirement of a leader  [8]  . Problem Statement: Upper management is facing a problem to retain its entire structure which is similar to the case of Lufthansa Airways. There may be a need for an improved format of organizational behavior needed in this regard that can be provided with the help of proper training Problem Highlight: Training Training: The problem here is that due to the high instability of labor market in airline industry, the company is unable to maintain its talent pool which again is introducing instability in its organizational structure. This instability is supposed to be handled by reducing job turnover rate by more motivational training to its employees  [9]  .

The Internet and Intellectual Property Laws Essay -- Internet Online

The Internet and Intellectual Property Laws With the emergence and growth of the internet, intellectual property laws are much harder to enforce and many people are saying that they are outdated and obsolete. Intellectual property allows you to own your ideas, thoughts, and creativity as you would own a piece of tangible property. The human mind is a creative tool that comes up with ideas, designs, schemes, and inspirations of all kinds. Intellectual property views these ideas as being property. The ideas must also have commercial value and be a tradable commodity otherwise there would be no point to protect it. Intellectual property is basically the ownership of ideas. If one were to write a novel, for which the idea was conceived in there mind, they could copyright that novel so that no other person could steal that idea and write another novel on it. Copyright is a type of intellectual property. The main types of intellectual property are patents, trademarks, trade secrets, and copyrights. There are many issues arising abou t copyright and intellectual property due to the technological advances in the past ten years or so. A patent is a way to protect your invention. A patent makes sure that no other person can make, sell, offer for sale, or import your invention for a certain amount of time, in Canada it is 20 years. Since you have put a lot of time and effort into creating and producing your product, a patent prohibits others from copying your creation so all of your time doesn’t go to waste. This allows you to properly market your creation and prevent competition in the early stages of your commercialization effort. Patentable material includes any â€Å"new and useful art, process, machine, manufacture or composition of ... .../31intell.htm> Intellectual Property. No date. Government of UK. 26 Jan. 2003 > Intellectual Property in Health Research. No Date. HRC 2 Feb. 2003 Levy, Steven. â€Å"Issues of Intellectual Property & Copyright for Educators†. Newsweek. 27 Feb. 1995. 26 Jan. 2003 McCullagh, Dean. â€Å"Judge: Kazaa can be Sued in US†. 10 Jan. 2003. 1 Feb. 2003 Overbye, Morten. â€Å"Teen Cleared in Landmark DVD Case.† 7 Jan. 2002. CNN. 26 Jan. 2003 FootNotes 1Baumer and Poindexter (pg42) 2http://www.bountyquest.com/patent/whatisip.htm 3http://news.com.com/2100-1023-980274.html?tag=lh 4http://www.cnn.com/2003/TECH/01/07/dvd.johansen/

Emerson And The Poet Essay -- essays research papers

Ralph Waldo Emerson states in The Poet the question, which is what is the poet? He says that all men express their feelings, but what makes a poet is that he has more ability to express his own. For example, a poet would express the beauty of nature well, while men who are less expressive cannot give nature the worth it should be given, related to reality of course. A poet would talk, as well about â€Å"the common wealth† not â€Å"his own wealth†. What is meant by that is that he does not only convey his own feelings and his own experience in life, but he carries the beauty of truth he sees with his art, and mostly the beauty the poet would see is in nature. In page 374, you will find all the details that have been explained before. His idea of a poet is not wrong at all. He reminds me so much ...

Corporate Control of the Media Defines Our Culture :: Argumentative Persuasive Topics

Corporate Control of the Media Defines Our Culture Viacom is on the warpath. They got your MTV, and Blockbuster, and even Paramount pictures. Forrest Gump is on the payroll. Any rock band or rap artist who wants to be anything is too. They own your music and your movies and a lot of the television you watch, and pretty soon they'll probably own all the books you read. They don't just supply the movies or music, either. First they tell you what you're going to like- -they lifted Forrest Gump all the way to an Oscar--and then they give it to you. And, if they're marketing is as good as it usually is, you're probably going to like it. They rule your tastes. They rule your culture. Viacom is everywhere. Viacom sucks. Viacom, with billions of dollars in their infantry, is conquering culture. They're not the only corporate general, though, leading the charge. Time/Warner has a formidable platoon, buying up magazines and chain stores and TV stations. Steven Spielberg, David Geffen, and Jeffrey Katzenberg, all with so much money they can't even spend it, just formed a multi-billion dollar media conglomerate called DreamWorks SKG. They want movies and music and TV and computers and anything else that entertains us. They want it all, and IBM and Microsoft and MCA records, among others rounding out the all-star corporate squad, are looking to get in on the deal. The war for cultural dominance is on, with billions and even trillions of dollars on the line. Everyone stand aside. The big guys are here to fight, and fight hard. Culture is a multi-billion dollar industry. Movies, computers, books, CD's, theme parks--they're what Americans spend their money on. Everyone has seen Jurassic Park. Everyone has heard Michael Jackson. Entertainment, and the culture it defines, is something we all share, something that unifies the American, and even world, experience. Little else can or does. Movies, music, TV especially have become the cultural staples of our time. A number one song can make you a millionaire, and some movies become so popular that literally everyone has seen them. Entertainment defines the American scene. It is our culture. It is, then, inevitably a part of everyone's life, if not only through your pocketbook. This, then, is what drives the battle to conquer culture--your money. American culture--what America reads, listens to, and watches--grows larger and larger every year, expanding like the Blob(a cultural icon) not only across the country but also across the world.